AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS, N-30D, 1997-02-26

AMERICAN CENTURY QUANTITATIVE EQUITY FUNDS
N-30D, 1997-02-26

Previous: INSURED MUNICIPAL SECURITIES TRUST 33RD DISCOUNT SERIES, 24F-2NT, 1997-02-26

Next: DREYFUS NEW JERSEY MUNICIPAL BOND FUND INC, NSAR-B, 1997-02-26

[BOOK ONE]

ANNUAL REPORT

[american century logo]

American
Century(sm)

December 31, 1996

AMERICAN
CENTURY
GROUP

Equity Growth
Income & Growth

[front cover]

TABLE OF CONTENTS

Report Highlights ..................................1
Our Message to You .................................2
Period Overview ....................................3
Equity Growth
Performance & Portfolio Information ...........4
Management Q & A ..............................5
Schedule of Investments .......................8
Financial Highlights .........................26
Income & Growth
Performance & Portfolio Information ..........12
Management Q & A .............................13
Schedule of Investments ......................16
Financial Highlights .........................27
Statements of Assets and Liabilities ..............20
Statements of Operations ..........................21
Statements of Changes in Net Assets ...............22
Notes to Financial Statements .....................23
Independent Auditors' Report ......................28
IRA/403(b) Information ............................29
Background Information
Investment Philosophy & Policies .............32
Comparative Indices ..........................32
Lipper Rankings ..............................32
Portfolio Management Team ....................32
Glossary ..........................................33

American Century Investments offers you nearly 70 fund choices covering
stocks, bonds, money markets, specialty investments and blended portfolios. To
help you find the funds that may meet your needs, American Century funds have
been divided into three groups based on investment style and objectives. These
groups, which appear below, are designed to help simplify your fund decisions.

American Century Investments--Family of Funds

Benham Group American Century Group Twentieth Century Group

MONEY MARKET FUNDS ASSET ALLOCATION &
GOVERNMENT BOND FUNDS BALANCED FUNDS GROWTH FUNDS
DIVERSIFIED BOND FUNDS CONSERVATIVE EQUITY FUNDS INTERNATIONAL FUNDS
MUNICIPAL BOND FUNDS SPECIALTY FUNDS

Equity Growth
Income & Growth

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

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

American Century Investments

REPORT HIGHLIGHTS

Period Overview

o U.S. stocks posted their sixth consecutive year of gains in 1996 as the
longest bull market in the history of the NYSE continued.

o Changing investor behavior led to a divergence between the strong performance
of large-capitalization stocks and the more sedate returns posted by
small-capitalization stocks.

o Although the 1995 stock rally was driven by strong corporate earnings growth,
the rally in 1996 was largely fueled by record cash flows into stock mutual
funds and strongly influenced by increased merger and acquisition activity.

o Going forward, it is unlikely that 1997 will produce the kind of gains seen
during 1995 or 1996. The direction of interest rates will likely play an
important role in determining how the stock market performs in 1997.

Equity Growth

o The fund posted a 27.34% total return for 1996, strongly outpacing the
returns of both its peer group average and its benchmark, the S&P 500. The
fund's average annual total return since inception was also strong,
outperforming the returns of both the S&P 500 and the fund's peer group
average.

o Thanks largely to the quantitative model we use to help manage the fund,
energy, bank and financial services stocks were overweighted, which strongly
enhanced the fund's returns.

o Other significant factors contributing to the fund's impressive returns were
our policy of remaining fully invested in domestic stocks and the
quantitative model used to identify undervalued stocks with good earnings
potential.

o Going forward, we intend to continue our current investment strategy,
maintaining an overweighting in energy, bank and financial services stocks.

Income & Growth

o The fund posted a 24.15% total return for 1996, outpacing the returns of both
its peer group average and its benchmark, the S&P 500.

o Thanks largely to the quantitative model we use to help manage the fund,
energy and bank services stocks were overweighted, which strongly enhanced
the fund's returns.

o Going forward, we intend to continue our current investment strategy,
maintaining an overweighting in energy and bank stocks.

Equity Growth

Total Returns:AS OF 12/31/96
6 Months 15.08%*
1 Year 27.34%

Net Assets:$274.4 million
(AS OF 12/31/96)

Inception Date: 5/9/91

Ticker Symbol: BEQGX

Income & Growth

Total Returns:AS OF 12/31/96
6 Months 13.00%*
1 Year 24.15%

Net Assets:$717.1 million
(AS OF 12/31/96)

Inception Date: 12/17/90

Ticker Symbol: BIGRX

* Not annualized.

Many of the investment terms in this report are defined in the Glossary on page
33.

Annual Report Report Highlights 1

OUR MESSAGE TO YOU

[photo of James E. Stowers III and James M. Benham]

1996 was an eventful year, both for the U.S. stock market and for our
company. The domestic stock market (as represented by the S&P 500) rallied to
all-time highs in late spring and from late summer into fall, ultimately
producing gains of more than 20% for the year. However, 75% of all diversified
U.S. stock funds had lower returns than the S&P 500 in 1996. We are proud to
note that American Century Equity Growth and American Century Income & Growth
were among the 25% that beat the S&P 500. In the following pages, our investment
management team provides further details about this performance and how your
fund was managed during the year.

On the corporate front, we completed the operational integration of Twentieth
Century and The Benham Group in September. As a result, you now have direct
access to a broader spectrum of funds and services.

We also changed the name of our company. On January 1, 1997, we began serving
you under the name American Century Investments, which reflects our expanded
identity and the independent thinking common to Twentieth Century and Benham.
American Century's fund family is divided into three groups--the Benham Group,
the American Century Group and the Twentieth Century Group. The Equity Growth
and Income & Growth funds have moved into the American Century Group because the
funds' conservative equity investment style matches key attributes of that
group.

This report incorporates a new format designed using your input. We hope you
find it more informative and easier to read. Another informative resource is the
American Century Web site. If you use a personal computer and have Internet
access, we've made it easier for you to download information about American
Century funds and access your fund accounts. With a personal access code, you
can view account balances, exchange money between existing accounts and make
additional investments. The Web site address is: www.americancentury.com. We are
one of the first fund companies to offer direct on-line transactions via the
Internet.

These are examples of how we continue to work to provide information and
services that are useful and convenient to investors in our funds. Thank you for
investing with us.

Sincerely,

/s/James E. Stowers III
James E. Stowers III
President and Chief Executive Officer
American Century Companies

/s/James M. Benham
James M. Benham
Vice Chairman
American Century Companies

2 Our Message to You American Century Investments

PERIOD OVERVIEW

Stock Market Overview

[line graph - data described below]

U.S. stocks posted their sixth consecutive year of gains in 1996 as the
longest bull market in the history of the New York Stock Exchange (NYSE)
continued. Although stock returns were generally favorable overall, changing
investor behavior led to a divergence between the stellar performance of
large-capitalization stocks and the more sedate returns of small-capitalization
stocks. This divergence is clearly demonstrated when comparing the 1996 gains of
the S&P 500 against the broader Russell 2000 Index (see the chart above).

The S&P 500--an index representing nearly 75% of the value of all NYSE
stocks--posted a noteworthy 22.93% gain for the year. In contrast however, the
Russell 2000 Index--a broad index of small-capitalization stocks--posted a
16.49% gain for the year to finish well behind the gains of the S&P 500.

The bulk of the outperformance by large-capitalization stocks occurred late
in the year and was brought about by several factors. One was a flight to the
more liquid stocks of blue-chip companies, which were perceived as more globally
competitive and therefore likely to be less impacted if U.S. economic growth
embarked upon a moderating trend.

Another factor behind the outperformance of large-capitalization stocks and
also the main driver behind the stock market's impressive gains in 1996, was the
record cash flows into stock mutual funds. Cash inflows remained strong
throughout the year, and many funds invested this money in large- capitalization
issues. The increased demand added notably to the strong performance of
large-capitalization stocks.

Only in July, when corporate earnings growth fell short of expectations and
the market plunged 7% in two weeks, did cash inflows waver; by August, cash
inflows had returned in full force. As a result, stock-fund inflows posted
another record year in 1996, dramatically eclipsing 1995 levels and fueling the
marketplace with well over $200 billion of investment capital. In addition to
helping push stock prices higher, this remarkable demand also prompted a slew of
stock offerings from both established and newly public companies.

Another factor influencing the market's rise during the period was increased
merger and acquisition activity. Up 27% from 1995, acquisitions, mergers and
spin-offs continued at a record pace as companies attempted to satiate their
thirst for growth. This activity was particularly in evidence among bank stocks,
which were among the market's top performers for the second consecutive year.

[line graph data]

S&P 500 vs. RUSSELL 2000 (Growth of $1.00)

Value on 12/31/96

S&P 500
$1.23

Russell 2000
$1.17

S&P 500 Russell 2000
Dec-95 $1 $1
Jan-96 $1.03404 $0.99892
Feb-96 $1.04363 $1.03006
Mar-96 $1.05368 $1.05102
Apr-96 $1.06921 $1.10722
May-96 $1.09678 $1.15085
Jun-96 $1.10096 $1.1036
Jul-96 $1.05232 $1.00721
Aug-96 $1.07451 $1.06569
Sep-96 $1.13499 $1.10733
Oct-96 $1.16629 $1.09027
Nov-96 $1.25445 $1.13519
Dec-96 $1.2296 $1.16494

S&P 500 22.93%
Russell 2000 Stock Index 16.49%

Source: Bloomberg Financial Markets

Annual Report Period Overview 3

EQUITY GROWTH

<TABLE>

6 MONTHS(1) 1 YEAR 3 YEARS 5 YEARS LIFE OF FUND(2)

AVERAGE ANNUAL RETURNS (as of December 31, 1996)
<S> <C> <C> <C> <C> <C>
Equity Growth 15.08% 27.34% 19.57% 14.68% 16.16%
S&P 500 11.68% 22.93% 19.64% 15.19% 15.54%
Average Growth Fund(3) 8.22% 19.23% 15.16% 13.03% 13.86%
Fund's Ranking Among Growth Funds(3) -- 54 out of 672 45 out of 430 78 out of 255 55 out of 232

(1) Not annualized.
(2) Inception date was May 9, 1991.
(3) According to Lipper Analytical Services.

See pages 32-33 for more information about returns, the comparative index and
Lipper fund rankings.
</TABLE>

[mountain graph - data below]

GROWTH OF $10,000 OVER THE LIFE OF THE FUND

$10,000
investment
made 5/9/91

Value on 12/31/96

Equity Growth
$23,302

S&P 500
$22,603
Equity Growth S&P 500

5/9/91 $10,000 $10,000
6/30/91 $9,640 $9,769
9/30/91 $10,379 $10,291
12/31/91 $11,748 $11,147
3/31/92 $11,129 $10,867
6/30/92 $10,923 $11,074
9/30/92 $11,291 $11,423
12/31/92 $12,233 $11,995
3/31/93 $12,774 $12,518
6/30/93 $12,999 $12,577
9/30/93 $13,698 $12,901
12/31/93 $13,630 $13,199
3/31/94 $12,997 $12,703
6/30/94 $13,178 $12,757
9/30/94 $13,680 $13,380
12/31/94 $13,599 $13,378
3/31/95 $14,866 $14,677
6/30/95 $16,299 $16,073
9/30/95 $17,322 $17,347
12/31/95 $18,299 $18,388
3/31/96 $19,448 $19,374
6/30/96 $20,248 $20,239
9/30/96 $21,170 $20,861
12/31/96 $23,302 $22,603

Past performance does not guarantee future results. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost. The line representing the fund's total return includes operating
expenses (such as transaction costs and management fees) that reduce returns,
while the total return line of the index does not.

PORTFOLIO AT A GLANCE
12/31/96 12/31/95
Number of Companies 151 156
Dividend Yield 1.92% 2.39%
Price/Earnings Ratio 16.1 15.4
Portfolio Turnover 131% 126%
Expense Ratio 0.63% 0.71%

4 Equity Growth American Century Investments

EQUITY GROWTH

Management Q & A

An interview with Dong Zhang, portfolio manager.

How did the Fund perform in 1996?

For the year, the fund posted a total return of 27.34%, strongly
outperforming the 22.93% return of the S&P 500, the fund's benchmark. The fund's
return also dramatically outpaced the 19.23% average return of the 672 "Growth
Funds" tracked by Lipper Analytical Services. The fund's average annual total
return since inception was also strong, outperforming the returns of both the
S&P 500 and the fund's peer group average. (See the Average Annual Returns table
on the preceding page for other fund performance comparisons.)

What was the main reason the fund outperformed both its benchmark and its peer
group average?

Thanks largely to the quantitative model we use to help manage the fund,
energy, bank and financial services stocks were overweighted, which strongly
enhanced the fund's returns. These industries were three of the best-performing
sectors for 1996 and represented over 22% of the fund's holdings.

What caused energy stocks to perform so well?

Crude oil prices soared to a five-year high in 1996 due to a combination of
Middle East tensions, colder weather and increased demand from developing
nations. As a result, the fund's large holdings of companies such as Atlantic
Richfield, Texaco and

[bar graph - data below]

EQUITY GROWTH FISCAL YEAR-BY-YEAR RETURNS (Periods ended December 31)

Equity Growth S&P 500

'91* 17.48% 11.47%
'92 4.13% 7.61%
'93 11.42% 10.03%
'94 -0.22% 1.36%
'95 34.56% 37.44%
'96 27.34% 22.93%

This chart illustrates the historical year-by-year volatility of the fund's
returns since its inception and compares them with the index's returns. The
fund's total returns include operating expenses, while the index's returns do
not. See page 32 for a description of the index.

* Return from the fund's 5/9/91 inception date to 12/31/91.

Annual Report Equity Growth 5

EQUITY GROWTH

Chevron performed very well. Although some of these companies were unable to
reap the full benefit of rising crude oil prices because of intense competition,
their double-digit gains still enhanced the fund's return.

What about bank and financial services stocks?

Coming on the heels of a tremendous 57% gain in 1995, bank stocks posted an
impressive 45% gain in 1996. Strong earnings momentum from their business
lending operations, a healthy U.S. economy and a trend toward industry
consolidation were the dominant reasons behind bank shares' strong performance.
With the exception of industry consolidation, these same factors were also
responsible for the 33% returns among diversified financial services companies.
The gains of these two industries were particularly impressive given that
interest rates were on the rise during much of 1996-these sectors typically
perform better when interest rates are falling.

Were there any particular bank stocks held by the fund that demonstrated this
type of remarkable performance?

An excellent example would be the merged Chase and Chemical Banking Corp.,
which posted a combined gain of 52% in 1996. Another example would be
NationsBank, which bought Boatman's Bancshares in August to create the nation's
fourth-largest bank. NationsBank posted a 44% gain for the period.

Although they did not directly benefit from industry consolidation,
BankAmerica Corp. and Citicorp posted notable gains of 54% and 53%,
respectively.

Were there any other significant factors that helped the fund achieve such a
strong return in 1996?

We believe our policy of remaining fully invested in U.S. stocks helped
increase the fund's return. When stocks have big years like they did in 1995 and
1996, it pays to be fully invested in the market at all times. However, many
growth funds held cash in their portfolios at some point during the year. As a
result, they were unable to take full advantage of the market's rise. This also
helps explain why the S&P 500 outperformed 75% of all diversified domestic stock
funds in 1996.

Another key reason behind the fund's strong performance was the quantitative
model we use to identify undervalued stocks with good earnings potential.

TOP TEN HOLDINGS % of fund investments
As of As of
12/31/96 6/30/96
du Pont (E.I.) de Nemours & Co. 3.0% --
Atlantic Richfield Co. 2.7% --
Texaco Inc. 2.2% --
BankAmerica Corp. 2.2% 2.3%
General Re Corp. 2.1% 1.2%
SBC Communications Inc. 1.8% 0.9%
Travelers Group, Inc. 1.8% 1.6%
Amgen Inc. 1.7% --
General Electric Co. 1.6% 2.0%
CIGNA Corp. 1.5% --

TOP FIVE INDUSTRIES % of fund investments
As of As of
12/31/96 6/30/96
Energy (Production & Marketing) 8.9% 9.6%
Financial Services 6.9% 5.8%
Banking 6.7% 9.5%
Insurance 6.3% 6.3%
Chemicals & Resins 6.0% 2.9%

6 Equity Growth American Century Investments

EQUITY GROWTH

Can you provide some specific examples of stocks that were chosen based upon the
findings of the model?

In July, when the market experienced a brief sell-off, we bought some shares
of JBIL Circuit Co., a disk drive manufacturing company. We purchased the stock
at $20.50 a share right after the company reported strong third-quarter results.
It subsequently reported even stronger fourth-quarter earnings and the share
price rose to as high as $49. We also purchased shares of IBM Corporation early
in the year and were obviously pleased by the stock's 60% return.

Looking ahead, what is your outlook for U.S. stocks in 1997?

Unfortunately, it is unlikely that 1997 will produce the kind of gains seen
during 1995 or 1996. Going forward, the direction of interest rates will
certainly play a central role in determining how the stock market shapes up in
1997. Although rising interest rates had a relatively minor impact on the market
during 1996, higher interest rates could significantly hamper stocks in the year
ahead if corporate earnings growth continues to slow. Another unresolved issue
is whether the record cash flows into stock mutual funds--which added nearly
$350 billion of investment capital during 1995 and 1996--are sustainable.

On a positive note, American corporations continue improving from a global
perspective. By investing in new technology and resources, American companies
have enhanced their ability to better compete in what is fast becoming a world
marketplace. Other factors working in favor of domestic stocks include moderate
U.S. economic growth and relatively benign levels of inflation, both of which
improve the outlook for corporate earnings down the road.

With this outlook in mind, how will you position the fund going forward?

Following our current investment strategy, we will continue to focus on
companies with positive earnings momentum that appear to be undervalued while
remaining fully invested in stocks. We will likely maintain our current
overweighting in banking and financial services stocks in the near future
because of their attractive values and strong earnings performance. We will also
continue to favor energy stocks, which still benefit from many of the same
factors that led to their strong performance in 1996. In addition, we may look
to increase our holdings of technology stocks, which we believe should benefit
from increased demand from developing nations and from corporations that are
upgrading their personal computers.

Annual Report Equity Growth 7

SCHEDULE OF INVESTMENTS
EQUITY GROWTH

DECEMBER 31, 1996

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

COMMON STOCKS

AEROSPACE & DEFENSE--2.9%
35,000 Boeing Co. $ 3,723,125
17,100 General Dynamics Corp. 1,205,550
55,000 Litton Industries, Inc.(1) 2,619,375
9,800 United Technologies Corp. 646,800
---------
8,194,850
---------

AIRLINES--1.0%
15,000 AMR Corp.(1) 1,321,875
15,000 British Airways Plc ADR 1,541,250
---------
2,863,125
---------
AUTOMOBILES & AUTO PARTS--2.2%
87,000 Chrysler Corp. 2,871,000
47,600 Ford Motor Co. 1,517,250
25,000 GenCorp Inc. 453,125
20,800 Honda Motor Co., Ltd. ADR 1,177,800
---------
6,019,175
---------
BANKING--6.7%
13,000 AmSouth Bancorporation 628,875
60,900 BankAmerica Corp. 6,074,775
38,800 Chase Manhattan Corp. 3,462,900
30,300 First Union Corp. 2,242,200
30,000 Morgan (J.P.) & Co. Inc. 2,928,750
33,200 NationsBank Corp. 3,245,300
---------
18,582,800
----------
BIOTECHNOLOGY--2.4%
88,200 Amgen Inc.(1) 4,801,387
80,000 Genzyme Corp.(1) 1,745,000
---------
6,546,387
---------
BROADCASTING & MEDIA--1.0%
77,600 King World Productions, Inc.(1) 2,861,500
---------
BUILDING & HOME IMPROVEMENTS--0.9%
23,500 Centex Corp. 884,188
20,100 Jacobs Engineering Group Inc.(1) 474,862
11,900 Medusa Corp. 409,063
16,400 Republic Group, Inc. 256,250
40,000 Schuller Corporation 425,000
8,800 Webb (Del) Corp. 144,100
---------
2,593,463
---------

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

BUSINESS SERVICES & SUPPLIES--0.3%
25,000 Manpower Inc. $ 812,500
---------
CHEMICALS & RESINS--6.0%
39,700 Dow Chemical Co. 3,111,487
90,000 du Pont (E.I.) de Nemours
& Co.(2) 8,493,750
47,000 Morton International, Inc. 1,915,250
27,000 Raychem Corp. 2,163,375
39,000 Schulman (A.), Inc. 960,375
---------
16,644,237
----------
COMMUNICATIONS EQUIPMENT--0.7%
40,000 Checkpoint Systems, Inc.(1) 990,000
20,741 Lucent Technologies, Inc. 959,271
---------
1,949,271
---------
COMMUNICATIONS SERVICES--5.9%
94,000 AT&T Corp. 3,924,500
32,600 Bell Atlantic Corp. 2,110,850
50,000 BellSouth Corp. 2,018,750
30,000 British Telecommunications plc 2,058,750
98,200 SBC Communications Inc. 5,081,850
18,600 Sprint Corp. 741,675
67,100 U.S. Long Distance Corp.(1) 545,188
---------
16,481,563
----------
COMPUTER PERIPHERALS--0.9%
25,000 BancTec, Inc.(1) 515,625
10,000 Cisco Systems Inc.(1) 636,875
80,000 HMT Technology Corp.(1) 1,210,000
---------
2,362,500
---------
COMPUTER SOFTWARE & SERVICES--2.3%
50,000 Ceridian Corp.(1) 2,025,000
32,500 Computer Associates
International, Inc. 1,616,875
10,000 Health Management Systems,
Inc.(1) 138,125
30,000 Medic Computer Systems, Inc.(1) 1,209,375
30,000 Sterling Software, Inc.(1) 948,750
40,000 Trusted Information Systems,
Inc.(1) 435,000
---------
6,373,125
---------
COMPUTER SYSTEMS--4.5%
46,600 Compaq Computer Corp.(1) 3,460,050
10,000 Gateway 2000, Inc.(1) 535,625
85,000 Hewlett-Packard Co. 4,271,250
28,100 International Business
Machines Corp. 4,243,100
---------
12,510,025
----------

See Notes to Financial Statements

8 Equity Growth American Century Investments

SCHEDULE OF INVESTMENTS
EQUITY GROWTH

DECEMBER 31, 1996

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

CONSTRUCTION--0.3%
25,000 Foster Wheeler Corp. $ 928,125
---------
CONTROL & MEASUREMENT--1.0%
23,500 Bio-Rad Laboratories, Inc.(1) 705,000
50,000 Coherent, Inc.(1) 2,137,500
---------
2,842,500
---------
ELECTRICAL & ELECTRONIC
COMPONENTS--4.9%
70,000 Chips & Technologies, Inc.(1) 1,268,750
4,100 Fluke Corp. 182,962
45,300 General Electric Co.(2) 4,479,037
20,000 Intel Corp. 2,618,750
15,000 Johnson Controls, Inc. 1,243,125
36,000 Park Electrochemical Corp. 819,000
50,000 SCI Systems, Inc.(1) 2,237,500
17,600 Wyle Electronics 695,200
---------
13,544,324
----------
ENERGY (PRODUCTION & MARKETING)--8.9%
57,700 Atlantic Richfield Co. 7,645,250
60,000 Chevron Corp. 3,900,000
20,000 Columbia Gas System, Inc. (The) 1,272,500
10,900 Eastern Enterprises 385,588
10,000 Exxon Corp. 980,000
37,000 Occidental Petroleum Corp. 864,875
24,000 Phillips Petroleum Co. 1,062,000
9,000 Royal Dutch Petroleum Co. 1,536,750
63,000 Texaco Inc. 6,181,875
42,800 Union Texas Petroleum
Holdings, Inc. 957,650
---------
24,786,488
----------

FINANCIAL SERVICES--6.9%
13,000 American Express Co. 734,500
48,845 Bear Stearns Companies Inc. 1,361,554
80,000 Federal National
Mortgage Association 2,980,000
40,000 Lehman Brothers Holdings, Inc. 1,255,000
13,200 Merrill Lynch & Co., Inc. 1,075,800
39,200 Morgan Stanley Group, Inc. 2,239,300
35,400 Paine Webber Group, Inc. 995,625
40,200 Salomon, Inc. 1,894,425

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

18,200 Student Loan Marketing
Association $ 1,694,875
111,933 Travelers Group, Inc. 5,078,960
---------
19,310,039
----------
FOOD & BEVERAGE--2.1%
184,000 Archer-Daniels-Midland Co. 4,048,000
50,000 Sara Lee Corp. 1,862,500
---------
5,910,500
---------
FURNITURE & FURNISHINGS--0.2%
11,800 La-Z-Boy Chair Co. 348,100
4,800 Miller (Herman), Inc. 270,900
---------
619,000
---------
HEALTHCARE--0.4%
15,000 Humana, Inc.(1) 286,875
40,000 RoTech Medical Corp.(1) 835,000
---------
1,121,875
---------
INDUSTRIAL EQUIPMENT & MACHINERY--4.9%
20,000 Case Equipment Corp. 1,090,000
40,000 Caterpillar Inc. 3,010,000
68,700 Dover Corp. 3,452,175
30,000 Dresser Industries, Inc. 930,000
45,300 Global Industrial Technologies,
Inc.(1) 1,002,263
14,900 Harsco Corp. 1,020,650
65,000 Ingersoll-Rand Co. 2,892,500
11,400 Measurex Corp. 273,600
---------
13,671,188
----------
INSURANCE--6.3%
20,000 American International Group,
Inc. 2,165,000
32,000 CIGNA Corp. 4,372,000
6,300 CNA Financial Corp.(1) 674,100
13,000 Equitable of Iowa Companies 320,125
8,400 Fremont General Corp. 260,400
37,500 General Re Corp. 5,915,625
12,800 Loews Corp. 1,206,400
77,600 Old Republic International Corp.2,075,800
8,900 ReliaStar Financial Corp. 513,975
---------
17,503,425
----------

See Notes to Financial Statements

Annual Report Equity Growth 9

SCHEDULE OF INVESTMENTS
EQUITY GROWTH

DECEMBER 31, 1996

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

LEISURE--1.3%
30,000 Callaway Golf Co. $ 862,500
22,000 Eastman Kodak Co. 1,765,500
20,000 Film Roman, Inc.(1) 148,750
30,000 Hilton Hotels Corp. 783,750
---------
3,560,500
---------
MEDICAL EQUIPMENT & SUPPLIES--4.9%
20,000 Advanced Technology
Laboratories, Inc.(1) 612,500
100,000 Becton, Dickinson & Co. 4,337,500
103,000 Hillenbrand Industries, Inc. 3,733,750
30,000 Hologic, Inc.(1) 742,500
40,000 Physician Sales & Service,
Inc.(1) 585,000
60,000 Thermo Electron Corp.(1) 2,475,000
23,500 Thermo Instrument Systems Inc.(1) 778,438
12,000 US Surgical Corp. 472,500
---------
13,737,188
----------
METALS & MINING--0.5%
15,900 Vulcan Materials Co. 967,912
20,000 Zeigler Coal Hldg. Co. 427,500
---------
1,395,412
---------
PAPER & FOREST PRODUCTS--1.1%
40,000 Avery Denison Corp. 1,415,000
50,000 Crane Co. 1,450,000
15,000 Glatfelter (P.H.) Co. 270,000
---------
3,135,000
---------
PHARMACEUTICALS--3.8%
23,000 Bristol-Myers Squibb Co. 2,501,250
81,600 Johnson & Johnson 4,059,600
41,800 Merck & Co., Inc. 3,312,650
10,500 Pfizer, Inc. 870,187
---------
10,743,687
----------
PRINTING & PUBLISHING--1.5%
16,200 Bowne & Co., Inc. 398,925
21,400 Media General, Inc. Cl A 647,350
155,700 Moore Corporation Ltd. 3,172,388
---------
4,218,663
---------

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

REAL ESTATE--0.3%
54,500 Gemstar International
Group Limited(1) $ 946,938
---------
RETAIL (APPAREL)--0.6%
55,900 Gap, Inc. 1,683,988
---------
RETAIL (GENERAL MERCHANDISE)--1.2%
21,900 Dayton Hudson Corp. 859,575
55,600 Sears, Roebuck & Co. 2,564,550
---------
3,424,125
---------
STEEL--0.3%
30,000 USX-Marathon Group 716,250
---------
TEXTILES&APPAREL--0.4%
20,000 NIKE, Inc. 1,195,000
---------
TOBACCO--1.2%
30,000 Philip Morris Companies Inc. 3,378,750
---------
TRANSPORTATION--0.5%
30,000 CSX Corp. 1,267,500
---------
UTILITIES (ELECTRIC)--1.6%
37,500 DQE, Inc. 1,087,500
35,000 Enova Corporation 796,250
54,400 Entergy Corp. 1,509,600
50,000 Pennsylvania Power & Light Co. 1,150,000
---------
4,543,350
---------
UTILITIES (NATURAL GAS)--0.6%
8,000 Indiana Energy Inc. 195,000
42,000 Pacific Enterprises 1,275,750
8,000 Wicor, Inc. 287,000
---------
1,757,750
---------
MISCELLANEOUS--0.9%
20,000 Hughes Supply, Inc. 862,500
20,000 National Education Corp.(1) 305,000
17,100 Ruddick Corp. 239,400
30,000 Stanley Works 810,000
5,000 Technitrol, Inc. 191,875
---------
2,408,775
---------
TOTAL COMMON STOCKS--94.3% 263,144,861
S (Cost $229,651,635) -----------

See Notes to Financial Statements

10 Equity Growth American Century Investments

SCHEDULE OF INVESTMENTS
EQUITY GROWTH

DECEMBER 31, 1996

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

TEMPORARY CASH INVESTMENTS(3)
$950,000 par value FHLB Discount
Note, 5.51%, 1-8-97 $ 948,969
1,300,000 par value FHLMC Discount
Note, 5.56%, 1-2-97 1,299,794
Repurchase Agreement, Morgan Stanley
& Co. Inc., (U.S. Treasury
obligations), in a joint trading
account at 6.25%, dated
12-31-96, due 1-2-97 (Delivery
value $13,804,792) 13,800,000
----------

TOTAL TEMPORARY CASH
INVESTMENTS--5.7% 16,048,763
(Cost $16,048,763) ----------

TOTAL INVESTMENT SECURITIES--100.0% $279,193,624
(Cost $245,700,398) ============

FUTURES CONTRACTS

Expiration Underlying Face Unrealized
Purchased Date Amount at Value (Loss)
- --------------------------------------------------------
23 S&P 500 March
Futures 1997 $8,561,750 $(50,255)
========== =========

Notes to Schedule of Investments
ADR = American Depositary Receipt
FHLB = Federal Home Loan Banks
FHLMC = Federal Home Loan Mortgage Corporation
(1) Non-income producing
(2) Denotes securities which have been partially or totally segregated at the
custodian bank for futures contracts.
(3) The rates for U.S. Government Agency discount notes are the yield to
maturity at December 31, 1996.

Annual Report Equity Growth 11

INCOME & GROWTH

<TABLE>

6 MONTHS(1) 1 YEAR 3 YEARS 5 YEARS LIFE OF FUND(2)

AVERAGE ANNUAL RETURNS (as of December 31, 1996)
<S> <C> <C> <C> <C> <C>
Income & Growth 13.00% 24.15% 19.11% 15.20% 18.99%
S&P 500 11.68% 22.93% 19.64% 15.19% 17.89%
Average Growth & Income Fund(3) 10.58% 20.77% 16.13% 13.84% 16.19%(4)
Fund's Ranking Among Growth & Income Funds(3) -- 107 out of 523 40 out of 330 60 out of 212 23 out of 177

(1) Not annualized.
(2) The fund's inception date was December 17, 1990.
(3) According to Lipper Analytical Services.
(4) For the period from 12/20/90 (the date nearest the fund's inception for which data are available) to 12/31/96.
</TABLE>

See pages 32-33 for more information about returns, the comparative index and
Lipper fund rankings.

[mountain graph data]

GROWTH OF $10,000 OVER THE LIFE OF THE FUND

Value on 12/31/96

Income &
Growth
$28,575

S&P 500
$27,022

Income & Growth S&P 500

12/17/90 $10,000 $10,000
3/31/91 $11,820 $11,704
6/30/91 $11,784 $11,679
9/30/91 $12,689 $12,303
12/31/91 $14,084 $13,326
3/31/92 $13,598 $12,991
6/30/92 $13,603 $13,239
9/30/92 $13,999 $13,656
12/31/92 $15,192 $14,340
3/31/93 $15,933 $14,964
6/30/93 $16,298 $15,035
9/30/93 $16,983 $15,422
12/31/93 $16,911 $15,779
3/31/94 $16,150 $15,186
6/30/94 $16,234 $15,251
9/30/94 $16,853 $15,996
12/31/94 $16,817 $15,993
3/31/95 $18,288 $17,564
6/30/95 $20,013 $19,215
9/30/95 $21,676 $20,737
12/31/95 $23,017 $21,982
3/31/96 $24,304 $23,161
6/30/96 $25,287 $24,196
9/30/96 $26,149 $24,939
12/31/96 $28,575 $27,022

PORTFOLIO AT A GLANCE

12/31/96 12/31/95
Number of Companies 193 239
Dividend Yield 2.55% 2.95%
Price/Earnings Ratio 15.7 15.4
Portfolio Turnover 92% 70%
Expense Ratio 0.62% 0.67%

12 Income & Growth American Century Investments

INCOME & GROWTH

Management Q & A

An interview with Steve Colton, vice president and senior portfolio manager.

How did the Fund perform in 1996?

The fund outperformed both the S&P 500 and the average growth & income fund.
For the year, the fund posted a total return of 24.15%, compared with the 22.93%
return of the S&P 500, the fund's benchmark. The fund's return also nicely
outpaced the 20.77% average return of the 523 "Growth & Income Funds" tracked by
Lipper Analytical Services. (See the Average Annual Returns table on the
preceding page for other fund performance comparisons.)

What was the main reason the fund outperformed both its benchmark and its peer
group average?

Thanks largely to the quantitative model we use to help manage the fund,
energy and bank services stocks were overweighted, which strongly enhanced the
fund's returns. These industries were two of the best-performing sectors for
1996 and represented nearly 18% of the fund's holdings.

What caused energy stocks to perform so well?

Crude oil prices soared to a five-year high in 1996 due to a combination of
Middle East tensions, colder weather and increased demand from developing

[bar graph data]

INCOME & GROWTH FISCAL YEAR-BY-YEAR RETURNS (Periods ended December 31)

Income & Growth S&P 500

'90* 1.29% 2.25%
'91 39.08% 30.33%
'92 7.86% 7.61%
'93 11.31% 10.03%
'94 -0.55% 1.36%
'95 36.88% 37.44%
'96 24.15% 22.93%

* Return from 12/17/90 inception date to 12/31/90.

Annual Report Income & Growth 13

INCOME & GROWTH

nations. As a result, the fund's large holdings of companies such as Atlantic
Richfield, Texaco and Chevron performed very well. Although some of these
companies were unable to reap the full benefit of rising crude oil prices
because of intense competition, their double-digit gains still enhanced the
fund's return.

What about bank stocks?

Coming on the heels of a tremendous 57% gain in 1995, bank stocks posted an
impressive 45% gain in 1996. Strong earnings momentum from their business
lending operations, a healthy U.S. economy and a trend toward industry
consolidation were the dominating reasons behind their strong performance. The
gains were particularly impressive given that interest rates were on the rise
during much of 1996--this sector typically performs better when interest rates
are falling.

Were there any particular bank stocks held by the fund that demonstrated this
type of remarkable performance?

An excellent example would be the merged Chase and Chemical Banking Corp.,
which posted a combined gain of 52% in 1996. Another example would be
NationsBank, which bought Boatman's Bancshares in August to create the nation's
fourth largest bank. NationsBank posted an impressive 44% gain for the period.

Although they did not directly benefit from industry consolidation,
BankAmerica Corp. and Citicorp posted notable gains of 54% and 53%,
respectively.

Were there any other significant factors that helped the fund achieve such a
strong return in 1996?

We believe our policy of remaining fully invested in U.S. stocks helped
increase the fund's return. When stocks have big years like they did in 1995 and
1996, it pays to be fully invested in the market at all times. However, many
growth & income funds held cash in their portfolios at some point during the
year. As a result, they were unable to take full advantage of the market's rise.
This also helps explain why the S&P 500 outperformed 75% of all diversified
domestic stock funds in 1996.

Another key reason behind the fund's strong performance was the quantitative
model we use to identify undervalued stocks with good earnings potential.

TOP TEN HOLDINGS % of fund investments
As of As of
12/31/96 6/30/96
Atlantic Richfield Co. 3.1% 0.7%
du Pont (E.I.) de Nemours & Co. 3.0% 0.5%
Bristol-Myers Squibb Co. 2.4% 3.7%
General Electric Co. 2.1% 2.5%
Philip Morris Companies Inc. 2.0% 2.7%
SBC Communications Inc. 1.6% 0.6%
Intel Corp. 1.6% 0.5%
Texaco Inc. 1.6% 0.3%
BankAmerica Corp. 1.5% 1.5%
Dow Chemical Co. 1.5% 1.3%

TOP FIVE INDUSTRIES % of fund investments
As of As of
12/31/96 6/30/96
Energy (Production & Marketing) 9.9% 11.3%
Banking 7.7% 7.7%
Communications Services 7.4% --
Chemicals & Resins 7.3% 4.9%
Pharmaceuticals 6.5% 8.7%

14 Income & Growth American Century Investments

INCOME & GROWTH

Looking ahead, what is your outlook for U.S. stocks in 1997?

On a positive note, American corporations continue improving from a global
perspective. By investing in new technology and resources, American companies
have enhanced their ability to better compete in what is fast becoming a world
marketplace. Other factors working in the favor of domestic stocks include
moderate U.S. economic growth and relatively benign levels of inflation, both of
which improve the outlook for corporate earnings down the road.

With this outlook in mind, how will you position the fund going forward?

Following our current investment strategy, we will continue to focus on
companies with positive earnings momentum that appear to be undervalued while
remaining fully invested in stocks. We will likely maintain our current
overweighting in banking stocks in the near future because of their attractive
values and strong earnings performance. We will also continue to favor energy
stocks, which still benefit from many of the same factors that led to their
strong performance in 1996. In addition, we may look to increase our holdings of
technology stocks, which we believe should benefit from increased demand from
developing nations and from corporations that are upgrading their personal
computers.

Annual Report Income & Growth 15

SCHEDULE OF INVESTMENTS
INCOME & GROWTH

DECEMBER 31, 1996

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

COMMON STOCKS

AEROSPACE & DEFENSE--1.7%
43,000 Boeing Co. $ 4,574,125
77,800 Litton Industries, Inc.(1) 3,705,225
64,000 United Technologies Corp. 4,224,000
-----------
12,503,350
-----------
AIRLINES--0.3%
18,300 AMR Corp.(1) 1,612,688
5,600 British Airways Plc ADR 575,400
-----------
2,188,088
-----------
AUTOMOBILES & AUTO PARTS--2.5%
190,400 Chrysler Corp. 6,283,200
190,300 Ford Motor Co. 6,065,813
89,700 General Motors Corp. 5,000,775
37,500 Simpson Industries, Inc. 412,500
10,000 TRW Inc. 495,000
-----------
18,257,288
-----------
BANKING--7.7%
27,500 AmSouth Bancorporation 1,330,312
106,300 BankAmerica Corp. 10,603,425
109,800 Bankers Trust New York Corp. 9,470,250
24,900 Barnett Banks, Inc. 1,024,012
102,888 Chase Manhattan Corp. 9,182,754
24,900 City National Corp. 538,462
33,200 Comerica, Inc. 1,738,850
55,500 First Union Corp. 4,107,000
33,100 Mellon Bank Corp. 2,350,100
87,400 Morgan (J.P.) & Co. Inc. 8,532,425
59,300 NationsBank Corp. 5,796,575
21,300 PNC Bank Corp. 801,412
-----------
55,475,577
-----------
BIOTECHNOLOGY--1.2%
97,600 Amgen Inc.(1) 5,313,100
40,000 Genetics Institute, Inc.(1) 3,395,000
-----------
8,708,100
-----------
BROADCASTING & MEDIA--0.9%
100,000 Evergreen Media Corp.(1) 2,487,500
108,200 King World Productions, Inc.(1) 3,989,875
-----------
6,477,375
-----------

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

BUILDING & HOME IMPROVEMENTS--0.4%
8,200 Ameron, Inc. $ 423,325
20,000 Medusa Corp. 687,500
118,300 Schuller Corporation 1,256,938
50,000 Webb (Del) Corp. 818,750
-----------
3,186.513
-----------
BUSINESS SERVICES & SUPPLIES--0.7%
25,000 Interpublic Group of Companies,
Inc. 1,187,500
35,200 Manpower Inc. 1,144,000
54,600 Ogden Corp. 1,023,750
101,200 Olsten Corp. 1,530,650
-----------
4,885,900
-----------
CHEMICALS & RESINS--7.3%
12,000 Chemed Corp. 438,000
48,700 Dexter Corp. 1,552,313
135,100 Dow Chemical Co. 10,588,462
231,500 du Pont (E.I.) de Nemours
& Co. 21,847,813
183,200 Ethyl Corp. 1,763,300
54,800 Goodrich (B.F.) Company 2,219,400
76,400 Millennium Chemicals Inc.(1) 1,356,100
98,500 Morton International, Inc. 4,013,875
90,000 Raychem Corp. 7,211,250
68,400 Schulman (A.), Inc. 1,684,350
-----------
52,674,863
-----------
COMMUNICATIONS EQUIPMENT--0.5%
45,500 Checkpoint Systems, Inc.(1) 1,126,125
43,751 Lucent Technologies, Inc. 2,023,485
10,000 U.S. Robotics Corp.(1) 720,625
-----------
3,870,235
-----------
COMMUNICATIONS SERVICES--7.4%
229,700 AT&T Corp. 9,589,975
146,800 Ameritech Corp. 8,899,750
128,200 Bell Atlantic Corp. 8,300,950
135,000 BellSouth Corp. 5,450,625
25,100 GTE Corp. 1,142,050
84,000 MCI Communications Corp. 2,745,750
35,100 NYNEX Corp. 1,689,187
228,700 SBC Communications Inc.(2) 11,835,225
57,300 Sprint Corp. 2,284,837
37,100 Tele Danmark A/S ADR 1,010,975
-----------
52,949,324
-----------

See Notes to Financial Statements

16 Income & Growth American Century Investments

SCHEDULE OF INVESTMENTS
INCOME & GROWTH

DECEMBER 31, 1996

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

COMPUTER PERIPHERALS--0.5%
59,700 Cisco Systems Inc.(1) $ 3,802,144
-----------
COMPUTER SOFTWARE & SERVICES--2.0%
105,000 Ceridian Corp.(1) 4,252,500
89,600 Computer Associates
International, Inc. 4,457,600
50,000 Health Management Systems, Inc.(1)690,625
20,000 Medic Computer Systems, Inc.(1) 806,250
20,000 Microsoft Corp.(1) 1,653,750
70,000 Sterling Software, Inc.(1) 2,213,750
-----------
14,074,475
-----------
COMPUTER SYSTEMS--3.6%
93,600 Compaq Computer Corp.(1) 6,949,800
30,000 Gateway 2000, Inc.(1) 1,606,875
154,500 Hewlett-Packard Co. 7,763,625
51,900 International Business
Machines Corp. 7,836,900
72,400 Sun Microsystems, Inc.(1) 1,859,775
-----------
26,016,975
-----------
CONSTRUCTION--0.3%
54,000 Foster Wheeler Corp. 2,004,750
-----------
CONSUMER PRODUCTS--0.7%
38,100 Brown Group, Inc. 700,088
57,800 Kellwood Co. 1,156,000
31,300 Maytag Corp. 618,175
31,700 VF Corp. 2,139,750
-----------
4,614,013
-----------
CONTROL & MEASUREMENT--0.8%
27,300 Bio-Rad Laboratories, Inc.(1) 819,000
108,900 Coherent, Inc.(1) 4,655,475
-----------
5,474,475
-----------
DIVERSIFIED COMPANIES--0.3%
80,700 Duriron Co, Inc. 2,178,900
-----------
ELECTRICAL & ELECTRONIC
COMPONENTS--5.8%
40,000 Atmel Corp.(1) 1,330,000
13,000 Esterline Technologies Inc.(1) 339,625
39,700 Fluke Corp. 1,771,612

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

152,500 General Electric Co.(2) $15,078,437
88,200 Intel Corp. 11,548,687
83,500 Johnson Controls, Inc. 6,920,062
107,900 SCI Systems, Inc.(1) 4,828,525
-----------
41,816,948
-----------
ENERGY (PRODUCTION & MARKETING)--9.9%
170,200 Atlantic Richfield Co. 22,551,500
123,200 Chevron Corp. 8,008,000
3,100 Columbia Gas System, Inc. (The) 197,238
59,200 Eastern Enterprises 2,094,200
100,000 Exxon Corp. 9,800,000
61,800 Mobil Corp. 7,555,050
122,900 Occidental Petroleum Corp. 2,872,788
28,800 Phillips Petroleum Co. 1,274,400
18,800 Quaker Chemical Corp. 307,850
31,600 Royal Dutch Petroleum Co. 5,395,700
114,700 Texaco Inc.(2) 11,254,938
-----------
71,311,664
-----------
FINANCIAL SERVICES--5.2%
47,800 American Express Co. 2,700,700
110,115 Bear Stearns Companies Inc. 3,069,456
17,100 Dean Witter, Discover & Co. 1,132,875
57,800 Edwards (A.G.), Inc. 1,943,525
178,800 Federal National
Mortgage Association 6,660,300
100,000 Lehman Brothers Holdings, Inc. 3,137,500
41,800 Merrill Lynch & Co., Inc. 3,406,700
28,200 Morgan Stanley Group, Inc. 1,610,925
22,700 Paine Webber Group, Inc. 638,437
73,300 Salomon, Inc. 3,454,262
26,600 Student Loan Marketing
Association 2,477,125
164,666 Travelers Group, Inc. 7,471,720
-----------
37,703,525
-----------
FOOD & BEVERAGE--2.0%
245,600 Archer-Daniels-Midland Co. 5,403,200
53,700 Lance, Inc. 956,531
73,500 RJR Nabisco, Inc. 2,499,000
152,000 Sara Lee Corp. 5,662,000
-----------
14,520,731
-----------

See Notes to Financial Statements

Annual Report Income & Growth 17

SCHEDULE OF INVESTMENTS
INCOME & GROWTH

DECEMBER 31, 1996

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

HEALTHCARE--0.5%
31,800 OrNda Healthcorp(1) $ 930,150
30,000 RoTech Medical Corp.(1) 626,250
70,000 Sierra Health Services(1) 1,723,750
-----------
3,280,150
-----------
INDUSTRIAL EQUIPMENT & MACHINERY--3.6%
74,900 Caterpillar Inc. 5,636,225
43,100 Cooper Industries, Inc. 1,815,587
132,700 Dover Corp. 6,668,175
83,500 Dresser Industries, Inc. 2,588,500
82,900 Global Industrial Technologies,
Inc.(1) 1,834,163
23,400 Harsco Corp. 1,602,900
83,700 Ingersoll-Rand Co. 3,724,650
22,800 Manitowoc Co., Inc. 923,400
29,600 Measurex Corp. 710,400
-----------
25,504,000
-----------
INSURANCE--3.4%
3,600 American Bankers
Insurance Group, Inc. 183,600
34,200 American International Group,
Inc. 3,702,150
34,100 CIGNA Corp. 4,658,912
46,900 General Re Corp. 7,398,475
71,400 GCR Holdings, Ltd. 1,584,188
24,200 Loews Corp. 2,280,850
92,500 Old Republic International Corp.2,474,375
120,900 Reliance Group Holdings, Inc. 1,103,212
22,500 ReliaStar Financial Corp. 1,299,375
-----------
24,685,137
-----------
LEISURE--1.3%
30,000 Callaway Golf Co. 862,500
71,700 Eastman Kodak Co. 5,753,925
50,000 Film Roman, Inc.(1) 371,875
75,600 Hilton Hotels Corp. 1,975,050
-----------
8,963,350
-----------
MEDICAL EQUIPMENT & SUPPLIES--2.8%
87,100 Advanced Technology
Laboratories, Inc.(1) 2,667,437
147,600 Becton, Dickinson & Co. 6,402,150
107,400 Hillenbrand Industries, Inc. 3,893,250
145,300 Physician Sales & Service,
Inc.(1) 2,125,013

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

76,200 Thermo Electron Corp.(1) $ 3,143,250
50,000 Thermo Instrument Systems
Inc.(1) 1,656,250
7,100 US Surgical Corp. 279,563
-----------
20,166,913
-----------
METALS & MINING--0.1%
11,600 Vulcan Materials Co. 706,150
-----------
PAPER & FOREST PRODUCTS--0.2%
34,350 Crane Co. 996,150
28,600 Glatfelter (P.H.) Co. 514,800
-----------
1,510,950
-----------
PHARMACEUTICALS--6.5%
74,500 American Home Products Corp. 4,367,563
159,800 Bristol-Myers Squibb Co. 17,378,250
189,800 Johnson & Johnson 9,442,550
101,700 Merck & Co., Inc. 8,059,725
50,000 Pfizer, Inc. 4,143,750
50,000 Pharmacia & Upjohn Inc. 1,981,250
20,200 Schering-Plough Corp. 1,307,950
-----------
46,681,038
-----------
PRINTING & PUBLISHING--0.7%
39,700 Media General, Inc. Cl A 1,200,925
203,500 Moore Corporation Ltd. 4,146,313
-----------
5,347,238
-----------
RETAIL (APPAREL)--0.7%
91,200 Gap, Inc. 2,747,400
6,000 Liz Claiborne, Inc. 231,750
45,000 Ross Stores, Inc. 2,244,375
-----------
5,223,525
-----------
RETAIL (GENERAL MERCHANDISE)--2.2%
101,100 Dayton Hudson Corp. 3,968,175
20,000 Harcourt General Inc. 922,500
34,000 Mercantile Stores Co., Inc. 1,678,750
204,000 Sears, Roebuck & Co. 9,409,500
-----------
15,978,925
-----------
STEEL--0.8%
64,100 LTV Corp. 761,187
144,900 USX-Marathon Group 3,459,487
44,300 USX-U.S. Steel Group 1,389,913
-----------
5,610,587
-----------
TEXTILE&APPAREL--0.4%
52,600 NIKE, Inc. 3,142,850
-----------

See Notes to Financial Statements

18 Income & Growth American Century Investments

SCHEDULE OF INVESTMENTS
INCOME & GROWTH

DECEMBER 31, 1996

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

TOBACCO--2.0%
125,000 Philip Morris Companies Inc. $ 14,078,125
-----------
TRANSPORTATION--0.5%
86,200 CSX Corp. 3,641,950
-----------
UTILITIES (ELECTRIC)--5.2%
118,900 Boston Edison Co. 3,195,437
170,600 Central & South West Corp. 4,371,625
8,300 Commonwealth Energy System 195,050
120,900 Consolidated Edison Co. of
New York, Inc. 3,536,325
34,500 Duke Power Co. 1,595,625
17,500 Enova Corporation 398,125
221,000 Entergy Corp. 6,132,750
105,000 MidAmerican Energy Co. 1,666,875
15,000 NIPSCO Industries, Inc. 594,375
196,400 Pennsylvania Power & Light Co. 4,517,200
198,900 Public Service Enterprise Group
Inc. 5,420,025
27,300 Rochester Gas & Electric Corp. 522,113
40,100 Texas Utilities Co. 1,634,075
55,000 Utilicorp United Inc. 1,485,000
61,800 United Illuminating Co. 1,938,975
-----------
37,203,575
-----------
UTILITIES (NATURAL GAS)--1.1%
13,300 Connecticut Natural Gas Corp. 339,150
14,200 Indiana Energy Inc. 346,125
109,700 Pacific Enterprises 3,332,138
84,800 People's Energy Corp. 2,872,600
31,000 Wicor, Inc. 1,112,125
-----------
8,002,138
-----------
MISCELLANEOUS--0.8%
75,000 CompUSA Inc.(1) 1,546,875
53,900 National Education Corp.(1) 821,975
25,000 Pitney Bowes Inc. 1,362,500
55,500 Ruddick Corp. 777,000
50,000 Stanley Works 1,350,000
-----------
5,858,350
-----------
TOTAL COMMON STOCKS--94.5% 680,280,164
(Cost $574,801,397) -----------

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

TEMPORARY CASH INVESTMENTS(3)
$15,000,000 par value FHLMC Discount
Note, 5.28%, 1-7-97 $ 14,985,750
$3,700,000 par value FNMA Discount
Note, 5.51%, 1-14-97 3,692,651
Repurchase Agreement, Morgan Stanley
& Co. Inc.,(U.S. Treasury obligations),
in a joint trading account at 6.25%,
dated 12-31-96, due 1-2-97
(Delivery value $21,207,361) 21,200,000
-----------

TOTAL TEMPORARY CASH
INVESTMENTS--5.5% 39,878,401
(Cost $39,878,401) -----------

TOTAL INVESTMENT SECURITIES--100.0% $720,158,565
(Cost $614,679,798) ============

FUTURES CONTRACTS

Expiration Underlying Face Unrealized
Purchased Date Amount at Value (Loss)
- ---------------------------------------------------------
75 S&P 500 March
Futures 1997 $27,918,750 $(89,400)
=========== =========

Notes to Schedule of Investments
ADR = American Depositary Receipt
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
(1) Non-income producing
(2) Denotes securities which have been partially or totally segregated at the
custodian bank for futures contracts.
(3) The rates for U.S. Government Agency discount notes are the yield to
maturity at December 31, 1996.

See Notes to Financial Statements

Annual Report Income & Growth 19
<TABLE>
<CAPTION>

STATEMENTS OF ASSETS AND LIABILITIES

DECEMBER 31, 1996

EQUITY INCOME &
GROWTH GROWTH

ASSETS
<S> <C> <C>
Investment securities, at value (identified cost of $245,700,398 and
$614,679,798, respectively) ............................................. $279,193,624 $720,158,565
Cash (Note 1) ................................................................. 2,370,960 2,159,587
Receivable for investments sold ............................................... 806,811 5,449,889
Receivable for capital shares sold ............................................ 3,362 214,600
Investment in affiliated money market (Note 2) ................................ 2,916 304,585
Dividends and interest receivable ............................................. 413,795 1,637,066
Prepaid expenses and other assets ............................................. 3,187 8,525
------------ ------------
282,794,655 729,932,817
------------ ------------

LIABILITIES
Disbursements in excess of demand deposit cash ................................ 729,336 980,194
Payable for investments purchased ............................................. 6,369,789 9,672,354
Payable for capital shares redeemed ........................................... 929,214 531,047
Payable for variation on futures contracts (Note 1) ........................... 169,220 547,500
Dividends payable ............................................................. -- 71,677
Payable to affiliates (Note 2) ................................................ 141,886 370,636
Accrued expenses and other liabilities ........................................ 22,629 64,652
------------ ------------
8,362,074 12,238,060
------------ ------------
Net Assets Applicable to Outstanding Shares ................................... $274,432,581 $717,694,757
============ ============

CAPITAL SHARES, $10.00 PAR VALUE
Authorized .................................................................... 2,000,000,000 2,000,000,000
============ ============
Outstanding ................................................................... 17,195,889 35,591,885
============ ============
Net Asset Value Per Share ..................................................... $15.96 $20.16
============ ============

NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) ....................................... $229,758,586 $591,678,444
Undistributed net investment income ........................................... 155,931 573,606
Accumulated undistributed net realized gain from investment transactions ...... 11,075,093 20,053,340
Net unrealized appreciation on investments .................................... 33,442,971 105,389,367
------------ ------------
$274,432,581 $717,694,757
============ ============

See Notes to Financial Statements
</TABLE>

20 Statements of Assets and Liabilities American Century Investments
<TABLE>
<CAPTION>

STATEMENTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 1996

EQUITY INCOME &
GROWTH GROWTH

INVESTMENT INCOME
<S> <C> <C>
Income:
Dividends (net of foreign taxes withheld of $34,759 and $99,368, respectively) .. $ 4,227,827 $14,073,942
Interest ........................................................................ 573,833 1,580,409
----------- ----------
4,801,660 15,654,351
----------- ----------
Expenses (Note 2):
Investment advisory fees ........................................................ 601,691 1,584,256
Transfer agency fees ............................................................ 301,615 770,136
Administrative fees ............................................................. 192,378 506,544
Custodian fees .................................................................. 77,005 192,060
Registration and filing fees .................................................... 35,794 89,820
Printing and postage ............................................................ 32,162 62,270
Auditing and legal fees ......................................................... 16,280 36,176
Directors' fees and expenses .................................................... 10,793 14,471
Other operating expenses ........................................................ 17,277 44,054
----------- ----------
Total expenses ................................................................ 1,284,995 3,299,787
Custodian earnings credits (Note 4) ............................................. (15,507) (25,838)
----------- ----------
Net expenses .................................................................. 1,269,488 3,273,949
----------- ----------
Net investment income ........................................................... 3,532,172 12,380,402
----------- ----------

REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTE 3)
Net realized gain ............................................................... 33,547,625 57,275,039
Change in net unrealized appreciation ........................................... 11,808,699 47,583,106
----------- ----------
Net realized and unrealized gain on investments ................................. 45,356,324 104,858,145
----------- ----------
Net Increase in Net Assets Resulting from Operations ............................ $48,888,496 $117,238,547
=========== ============

See Notes to Financial Statements
</TABLE>

Annual Report Statements of Operations 21

STATEMENTS OF CHANGES IN NET ASSETS

YEARS ENDED DECEMBER 31, 1996
AND DECEMBER 31, 1995
EQUITY INCOME &
GROWTH GROWTH

Increase in Net Assets 1996 1995 1996 1995

OPERATIONS
<S> <C> <C> <C> <C>
Net investment income .......................................... $ 3,532,172 $ 2,590,300 $ 12,380,402 $ 7,252,966
Net realized gain on investment transactions ................... 33,547,625 14,524,662 57,275,039 24,745,688
Change in net unrealized appreciation on investments ........... 11,808,699 20,284,838 47,583,106 53,273,200
---------- ---------- ---------- ----------
Net increase in net assets resulting from operations ........... 48,888,496 37,399,800 117,238,547 85,271,854
---------- ---------- ----------- ----------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ..................................... (3,440,245) (2,229,577) (12,129,058) (7,155,104)
From net realized gains on investment transactions ............. (27,164,820) (10,288,052) (47,219,967) (14,921,356)
----------- ----------- ----------- -----------
Decrease in net assets from distributions ...................... (30,605,065) (12,517,629) (59,349,025) (22,076,460)
----------- ----------- ----------- -----------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ...................................... 180,750,520 99,236,956 459,487,007 136,860,249
Proceeds from reinvestment of distributions .................... 29,552,500 12,120,317 56,254,702 20,831,551
Payments for shares redeemed ................................... (113,604,164) (74,226,375) (229,637,617) (72,124,849)
------------ ----------- ------------ -----------
Net increase in net assets from capital share transactions ..... 96,698,856 37,130,898 286,104,092 85,566,951
---------- ---------- ----------- ----------
Net increase in net assets ..................................... 114,982,287 62,013,069 343,993,614 148,762,345

NET ASSETS
Beginning of year .............................................. 159,450,294 97,437,225 373,701,143 224,938,798
----------- ---------- ----------- -----------
End of year .................................................... $ 274,432,581 $ 159,450,294 $ 717,694,757 $ 373,701,143
============= ============= ============= =============

Undistributed net investment income ............................ $ 155,931 $ 64,004 $ 573,606 $ 322,262
============= ============= ============= =============

TRANSACTIONS IN SHARES OF THE FUND
Sold ........................................................... 11,280,491 7,293,964 23,349,240 8,043,488
Issued in reinvestment of distributions ........................ 1,878,880 865,208 2,834,991 1,210,017
Redeemed ....................................................... (7,156,611) (5,415,539) (11,577,062) (4,427,311)
---------- ---------- ----------- ----------
Net increase ................................................... 6,002,760 2,743,633 14,607,169 4,826,194
========= ========= ========== =========

See Notes to Financial Statements
</TABLE>

22 Statements of Changes in Net Assets American Century Investments

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1996

1. Organization and Summary of Significant Accounting Policies

Organization--American Century Quantitative Equity Funds (the Corporation) is
registered under the Investment Company Act of 1940 as an open-end management
investment company. American Century Equity Growth Fund (Equity Growth) and
American Century Income & Growth Fund (Income & Growth) (collectively the Funds)
are two of the five funds issued by the Corporation. The Funds are diversified
under the 1940 Act. Equity Growth seeks capital appreciation by investing in
common stocks; Income & Growth seeks dividend growth, current income and capital
appreciation by investing in common stocks. The following significant accounting
policies, related to the Funds, are in accordance with accounting policies
generally accepted in the investment company industry.

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

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

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

Futures Contracts--The Funds may enter into stock index futures contracts in
order to manage the Funds' exposure to changes in market conditions. One of the
risks of entering into futures contracts includes the possibility that the
change in value of the contract may not correlate with the changes in the value
of the underlying securities. Upon entering into a futures contract, the Funds
are required to deposit either cash or securities in an amount equal to a
certain percentage of the contract value (initial margin). The initial margin of
$310,500 for Equity Growth and $1,012,500 for Income & Growth is included in
cash on the Statements of Assets and Liabilities. Subsequent payments (variation
margin) are made or received daily, in cash, by the Funds. The variation margin
is equal to the daily change in the contract value and is recorded as unrealized
gains and losses. The Funds recognize 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 Funds may enter into repurchase agreements with
institutions that the Funds' investment advisor, Benham Management Corporation
(BMC), has determined are creditworthy pursuant to criteria adopted by the Board
of Directors. Each repurchase agreement is recorded at cost. The Funds require
that the securities purchased in a repurchase transaction be transferred to the
custodian in a manner sufficient to enable the Funds to obtain those securities
in the event of a default under the repurchase agreement. BMC monitors, on a
daily basis, the value of the securities transferred to ensure that the value,
including accrued interest, of the securities under each repurchase agreement is
greater than the amount owed to the Funds under each repurchase agreement.

Joint Trading Account--Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Funds, along with other registered
investment companies having management agreements with BMC and American Century
Investment Management, Inc., 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 and Agency obligations.

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

Distributions to Shareholders--Distributions to shareholders are recorded on
the ex-dividend date. Distributions from net investment income are declared and
paid quarterly for the Equity Growth Fund. Distributions from net investment
income for Income & Growth are declared daily and distributed monthly.
Distributions from net realized gains for the Funds are declared and paid
annually.

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

Annual Report Notes to Financial Statements 23

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1996

Supplementary Information--Certain officers and directors of the Corporation
are also officers and/or directors, and, as a group, controlling stockholders of
American Century Companies, Inc. (ACC), the parent of the Corporation's
investment advisor, BMC, the Corporation's distributor, American Century
Investment Services, Inc. (ACIS), and the Corporation's transfer agent, American
Century Services Corporation (ACSC).

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

Organization Costs--Costs incurred by Equity Growth in connection with the
organization, initial registration, and public offering of shares were amortized
on a straight-line basis over a five-year period ending May 1996.

- --------------------------------------------------------------------------------
2. Transactions with Related Parties

The Corporation has entered into an Investment Advisory Agreement with BMC
that provides the Funds with investment advisory services in exchange for an
investment advisory fee. ACSC pays all compensation of the Corporation's
officers and directors who are officers or directors of ACC or any of its
subsidiaries. In addition, promotion and distribution expenses are paid by BMC.
The investment advisory fee is paid monthly by each Fund based on its pro rata
share of the dollar amount derived from applying the Corporation's average daily
closing net assets to the following annualized investment advisory fee schedule.

0.50% of the first $100 million
0.45% of the next $100 million
0.40% of the next $100 million
0.35% of the next $100 million
0.30% of the next $100 million
0.25% of the next $1 billion
0.24% of the next $1 billion
0.23% of the next $1 billion
0.22% of the next $1 billion
0.21% of the next $1 billion
0.20% of the next $1 billion
0.19% of average daily net assets over $6.5 billion

The Corporation has entered into an Administrative Services and Transfer
Agency Agreement with ACSC. The agreement was formerly with Benham Financial
Services, Inc. Under the agreement, ACSC provides administrative service and
transfer agency functions necessary to operate the Funds. Fees for these
services are based on transaction volume, number of accounts and average daily
closing net assets of all funds advised by BMC.

The Corporation has an additional agreement with BMC pursuant to which BMC
established a contractual expense guarantee that limits fund expenses (excluding
expenses such as brokerage commissions, taxes, interest, custodian earnings
credits and extraordinary expenses) to .75% of the Fund's average daily closing
net assets. The agreement provides further that BMC may recover amounts
(representing expenses in excess of the Fund's expense guarantee rate) absorbed
during the preceding 11 months, if, and to the extent that, for any given month,
the Fund's expenses are less than the expense guarantee rate in effect at that
time. The expense guarantee rate is renewed annually in June.

The payables to affiliates as of December 31, 1996, based on the above
agreements, were as follows:

Equity Income &
Growth Growth

Investment Advisor $ 66,446 $178,143
Administrative Services 46,097 118,398
Transfer Agent 29,343 74,095
-------- --------
$141,886 $370,636
======== ========

As of December 31, 1996, the Funds had invested in shares of Capital
Preservation Fund, Inc. (CPF), a money market fund advised by BMC. The terms of
the transaction were identical to those with nonrelated entities except that, to
avoid duplicative investment advisory fees and administrative fees, the Funds
did not pay BMC investment advisory fees or ACSC administrative fees with
respect to assets invested in shares of CPF.

The Corporation has a Distribution Agreement with ACIS, which is responsible
for promoting sales of and distributing the Funds' shares. This agreement was
formerly with Benham Distributors, Inc.

24 Notes to Financial Statements American Century Investments

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1996

- --------------------------------------------------------------------------------
3. Investment Transactions

The aggregate cost of investment securities purchased (excluding short-term
investments) for the year ended December 31, 1996, for Equity Growth and Income
& Growth totaled $319,818,208 and $677,484,177, respectively, for common stocks.
Proceeds from investment securities sold (excluding short-term investments)
totaled $253,805,998 and $462,958,780, respectively, for common stocks. Proceeds
from investment securities sold (excluding short-term investments) totaled
$15,273, for preferred stocks in Equity Growth. As of December 31, 1996,
accumulated net unrealized appreciation for Equity Growth and Income & Growth
was $33,493,094 and $105,182,795 based on the aggregate cost of investments of
$245,700,530 and $614,975,770, respectively for federal income tax purposes.
Accumulated net unrealized appreciation consisted of unrealized appreciation of
$35,860,759 and $111,125,392 for Equity Growth and Income & Growth and
unrealized depreciation of $2,367,665 and $5,942,597, respectively.

- --------------------------------------------------------------------------------
4. Expense Offset Arrangements

The Funds' Statements of Operations reflect custodian earnings credits. These
amounts are used to offset the custodian fees payable by the Funds to the
custodian bank. The credits are earned when the Funds maintain a balance of
uninvested cash at the custodian bank. Beginning with the year ended December
31, 1995, the ratios of operating expenses to average net assets shown in the
Financial Highlights are calculated as if these credits had not been earned.

- --------------------------------------------------------------------------------
5. Subsequent Events

<TABLE>
The following name changes became effective January 1, 1997:

NEW NAMES FORMER NAMES

<S> <C> <C>
Funds' Issuer: American Century Quantitative Equity Funds(1) Benham Equity Funds
Funds: American Century Equity Growth Fund(1) Benham Equity Growth Fund
American Century Income & Growth Fund(1) Benham Income & Growth Fund
Parent Company: American Century Companies, Inc. Twentieth Century Companies, Inc.
Distributor: American Century Investment Services, Inc. Twentieth Century Securities, Inc.
Transfer Agent: American Century Services Corporation Twentieth Century Services, Inc.

(1) New names are subject to shareholder approval.
</TABLE>

Annual Report Notes to Financial Statements 25

FINANCIAL HIGHLIGHTS
EQUITY GROWTH

For a Share Outstanding Throughout the Years Ended December 31

1996 1995 1994 1993 1992

PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C>
Beginning of Year ................................ $14.25 $11.53 $12.12 $11.68 $11.57
------ ------ ------ ------ ------
Income from Investment Operations
Net Investment Income .......................... .27 .26 .30 .23 .26
Net Realized and Unrealized Gain
(Loss) on Investment Transactions .............. 3.55 3.70 (.33) 1.10 .23
------ ------ ------ ------ ------
Total From
Investment Operations .......................... 3.82 3.96 (.03) 1.33 .49
------ ------ ------ ------ ------
Distributions
From Net Investment Income ..................... (.26) (.23) (.30) (.23) (.23)
From Net Realized Gains
on Investment Transactions ..................... (1.85) (1.01) (.26) (.66) (.15)
------ ------ ------ ------ ------
Total Distributions ............................ (2.11) (1.24) (.56) (.89) (.38)
------ ------ ------ ------ ------
Net Asset Value, End of Year ..................... $15.96 $14.25 $11.53 $12.12 $11.68
====== ====== ====== ====== ======
Total Return(1) ................................ 27.34% 34.56% (.23%) 11.42% 4.13%

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets(2) ....................... .63% .71% .75% .75% .75%
Ratio of Net Investment Income
to Average Net Assets .......................... 1.74% 1.96% 2.26% 2.04% 2.33%
Portfolio Turnover Rate ........................ 131% 126% 94% 97% 114%
Average Commission Paid per
Investment Security Traded ..................... $.038 $.032 --(3) --(3) --(3)
Net Assets, End
of Year (in thousands) .........................$274,433 $159,450 $97,437 $96,284 $73,592

(1) Total return assumes reinvestment of dividends and capital gains
distributions, if any.

(2) The ratios for the periods subsequent to December 31, 1994, include
expenses paid through expense offset arrangements.

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

See Notes to Financial Statements

26 Financial Highlights American Century Investments

FINANCIAL HIGHLIGHTS
INCOME & GROWTH

For a Share Outstanding Throughout the Years Ended December 31

1996 1995 1994 1993 1992

PER-SHARE DATA

Net Asset Value,
<S> <C> <C> <C> <C> <C>
Beginning of Year .............................. $ 17.81 $13.92 $15.08 $14.11 $13.53
------ ------ ------ ------ ------
Income From Investment Operations
Net Investment Income ........................ .44 .42 .44 .43 .42
Net Realized and Unrealized
Gain (Loss) on Investment Transactions ....... 3.79 4.64 (.53) 1.15 .62
------ ------ ------ ------ ------
Total From
Investment Operations ........................ 4.23 5.06 (.09) 1.58 1.04
------ ------ ------ ------ ------
Distributions
From Net Investment Income ................... (.44) (.42) (.43) (.43) (.41)
From Net Realized Gains
on Investment Transactions ................... (1.44) (.75) (.64) (.18) (.05)
------ ------ ------ ------ ------
Total Distributions .......................... (1.88) (1.17) (1.07) (.61) (.46)
------ ------ ------ ------ ------
Net Asset Value, End of Year ................... $20.16 $17.81 $13.92 $15.08 $14.11
====== ====== ====== ====== ======
Total Return (1) ............................. 24.15% 36.88% (.55%) 11.31% 7.86%

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses to
Average Net Assets(2) ........................ .62% .67% .73% .75% .75%
Ratio of Net Investment Income
to Average Net Assets ........................ 2.32% 2.61% 2.96% 2.90% 3.16%
Portfolio Turnover Rate ...................... 92% 70% 68% 31% 63%
Average Commission Paid per
Investment Security Traded ................... $.039 $.030 --(3) --(3) --(3)
Net Assets, End
of Year (in thousands) ....................... $717,695 $373,701 $224,939 $230,191 $141,221

(1) Total return assumes reinvestment of dividends and capital gains
distributions, if any.

(2) The ratios for the periods subsequent to December 31, 1994, include
expenses paid through expense offset arrangements.

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

See Notes to Financial Statements

Annual Report Financial Highlights 27

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
American Century Quantitative Equity Funds:

We have audited the accompanying statements of assets and liabilities,
including the schedules of investment securities, of American Century Equity
Growth Fund and American Century Income & Growth Fund (two of the five funds
comprising American Century Quantitative Equity Funds) (the Funds) as of
December 31, 1996, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the periods
presented. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
American Century Equity Growth Fund and American Century Income & Growth Fund as
of December 31, 1996, the results of their operations, the changes in their net
assets and their financial highlights for the periods indicated above, in
conformity with generally accepted accounting principles.

/s/KPMG Peat Marwick LLP
Kansas City, Missouri
February 7, 1997

28 Independent Auditors' Report American Century Investments

IMPORTANT NOTICE FOR
ALL IRA AND 403(b) SHAREHOLDERS

As required by law, any distributions you receive from an IRA and certain
403(b) distributions [not eligible for rollover to an IRA or to another 403(b)]
are subject to federal income tax withholding at the rate of 10% of the total
amount withdrawn, unless you elect not to have withholding apply. If you don't
want us to withhold on this amount, you may send us a written notice not to have
the federal income tax withheld. Your written notice is valid for six months
from the date of receipt at American Century. Even if you plan to roll over the
amount you withdraw to another tax-deferred account, the withholding rate still
applies to the withdrawn amount, unless we have received a written notice not to
withhold federal income tax within six months prior to the withdrawal.

When you plan to withdraw, you may make your election by completing our
Conversions/ Redemptions form or an IRS Form W-4P. Call American Century for
either form. Your written election is valid for only six months from the date of
receipt at American Century. You may revoke your election at any time by sending
a written notice to us.

Remember, even if you elect not to have income tax withheld, you are liable
for paying income tax on the taxable portion of your withdrawal. If you elect
not to have income tax withheld or you don't have enough income tax withheld,
you may be responsible for payment of estimated tax. You may incur penalties
under the estimated tax rules if your withholding and estimated tax payments are
not sufficient.

Annual Report Important Notice 29

NOTES

30 Notes American Century Investments

NOTES

Annual Report Notes 31

BACKGROUND INFORMATION

Investment Philosophy and Policies

The American Century group offers seven equity funds, including Equity Growth
and Income & Growth. These two funds are general equity funds managed to provide
returns representative of the performance of the U.S. stock market as a whole.
The portfolio managers use quantitative management strategies in pursuit of each
fund's investment objective. The primary management technique the portfolio
managers use is portfolio optimization. Portfolio optimization may cause a fund
to be more heavily invested in some industries than in others. However, neither
fund may invest more than 25% of its total assets in companies whose principal
business activities are in the same industry.

Equity Growth seeks capital appreciation by investing in common stocks.
Equity Growth is designed for investors whose financial goals include long-term
capital appreciation. The Portfolio Manager seeks a total return for Equity
Growth that exceeds the total return of the S&P 500. Of course, Equity Growth's
total return may be higher or lower than the S&P 500's return over any period of
time.

Income & Growth seeks dividend growth, current income and capital
appreciation by investing in common stocks. Income & Growth is designed for
income-oriented investors seeking a total return that exceeds the total return
of the S&P 500 and a dividend yield that exceeds the S&P 500's dividend yield.
Of course, Income & Growth's total return and dividend yield may be higher or
lower than the S&P 500's total return and dividend yield over any period of
time.

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 an index created by Standard & Poor's Corporation that is
considered to be a broad measure of U.S. stock market performance. It is
composed primarily of large-capitalization stocks.

The Russell 2000 is an index created by the Frank Russell Company that is
considered to be a broad measure of the stock price performance of small
companies. It is composed primarily of small-capitalization U.S. stocks.

Lipper Rankings

Lipper Analytical Services, Inc. is an independent mutual fund ranking
service that groups funds according to their investment objective. Rankings are
based on average annual total returns for each fund in a given category for the
periods indicated. Ratings are not included for periods of less than one year.

The Lipper categories for the Equity Growth and Income & Growth funds are:

Growth Funds (Equity Growth)--funds that normally invest in companies whose
long-term earnings are expected to grow significantly faster than the earnings
of the stocks represented in the major unmanaged stock indices.

Growth & Income Funds (Income & Growth)--funds that combine a growth of
earnings orientation and an income requirement for level and/or rising
dividends.

PORTFOLIO MANAGEMENT TEAM

Vice President and
Senior Portfolio Manager Steve Colton

Portfolio Manager Dong Zhang

32 Background Information American Century Investments

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 pages 26-27.

Portfolio Statistics

Number of Companies--the number of different companies geld by a fund on a
given date.

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/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 are calculated by
dividing the after-tax earnings of a corporation by its outstanding shares.)

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.

Expense Ratio--the operating expenses of the fund, expressed as a percentage
of net assets. Shareholders pay an annual fee to the investment advisor for
investment advisory and management services. The expenses and fees are deducted
from fund income, not from each shareholder. The annual fee has a contractual
expense limit guarantee based on the terms of the Investment Advisory Agreement.
(See Note 2 in the Notes to Financial Statements.)

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.

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.

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.

Statistical Terminology

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.)

Annual Report Glossary 33

[american century logo]
American
Century(sm)

P.O. Box 419200
Kansas City, Missouri
64141-6200

Person-to-Person Assistance:
1-800-345-2021 or 816-531-5575

Automated Information Line:
1-800-345-8765

Telecommunications Device for the Deaf:
1-800-634-4113 or 816-753-1865

Fax: 816-340-7962

Internet: www.americancentury.com

American Century Quantitative Equity Funds

Investment Manager
Benham Management Corporation

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 Investment Services, Inc.

9702 [recycled logo]
SH-BKT-7797 Recycled

[BOOK TWO]

ANNUAL REPORT

[american century logo]
American
Century(sm)

December 31, 1996

AMERICAN
CENTURY
GROUP

Global Gold
Global Natural Resources

[front cover]

TABLE OF CONTENTS

Report Highlights ..................................1
Our Message to You .................................2
Period Overview ....................................3
Global Gold
Performance & Portfolio Information ...........5
Management Q & A ..............................6
Schedule of Investments .......................9
Financial Highlights .........................24
Global Natural Resources
Performance & Portfolio Information ..........11
Management Q & A .............................12
Schedule of Investments ......................15
Financial Highlights .........................25
Statements of Assets and Liabilities ..............18
Statements of Operations ..........................19
Statements of Changes in Net Assets ...............20
Notes to Financial Statements .....................21
Independent Auditors' Report ......................26
IRA/403(b) Information ............................27
Background Information
Investment Philosophy & Policies .............28
Comparative Indices ..........................28
Lipper Rankings ..............................28
Portfolio Management Team ....................28
Glossary ..........................................29

American Century Investments--Family of Funds

Benham Group American Century Group Twentieth Century Group

MONEY MARKET FUNDS ASSET ALLOCATION &
GOVERNMENT BOND FUNDS BALANCED FUNDS GROWTH FUNDS
DIVERSIFIED BOND FUNDS CONSERVATIVE EQUITY FUNDS INTERNATIONAL FUNDS
MUNICIPAL BOND FUNDS SPECIALTY FUNDS

Global Gold
Global Natural Resources

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

American Century Investments

REPORT HIGHLIGHTS

Period Overview

Gold

o The price of gold bullion declined by 5% in 1996.

o Potential gold reserve sales by European central banks and the IMF are
putting continuing downward pressure on the price of gold.

o Overall, gold stocks reflected the poor performance of gold bullion. For
1996, North American gold producers returned 0.25%, Australian producers
returned -6% and South African producers returned -15%.

Natural Resources

o Commodities performed well overall. The Goldman Sachs Commodities Index
(GSCI) posted a 34% gain for 1996.

o The price of crude oil and natural gas surged due to low reserves and strong
demand.

o Energy stocks (like their underlying commodities) outperformed other natural
resources stocks for the year.

o Stocks of oil services companies--specifically offshore drillers--were the
top performers in the energy sector.

o Steel company stocks were among the worst performers, declining by 13% for
the year.

Global Gold

o The fund underperformed its Lipper peer group but outperformed its benchmark
index for the year.

o The fund was underweighted in South African gold stocks, which significantly
underperformed both North American and Australian gold stocks in 1996.

o We expect a somewhat lackluster performance from large-cap gold stocks in
1997 but also some selective opportunities for attractive returns in some
mid- and small-cap gold stocks.

o Going forward, we plan a more diversified exposure to small gold producers
and exploration companies to round out the fund's portfolio.

Global Natural Resources

o The fund kept pace with its benchmark but underperformed its Lipper peer
group average for the year.

o The fund benefited from underweightings in paper and steel stocks.

o Analysts' expectations of stable global economic growth into 1997 should
support demand for natural resources, benefiting natural resource-based
companies.

o Going forward, we may look to cut back on some types of energy stocks, while
looking for opportunities in oil services, natural gas and basic materials
stocks.

Global Gold

Total Returns:AS OF 12/31/96
6 Months -6.90%*
1 Year -2.76%

Net Assets:$432.6 million
(AS OF 12/31/96)

Inception Date: 8/17/88

Ticker Symbol: BGEIX

Global
Natural Resources

Total Returns:AS OF 12/31/96
6 Months 7.77%*
1 Year 15.45%

Net Assets:$66.0 million
(AS OF 12/31/96)

Inception Date: 9/15/94

Ticker Symbol: BGRIX

* Not annualized.

Many of the investment terms in this report are defined in the Glossary on
page 29.

Annual Report Report Highlights 1

OUR MESSAGE TO YOU

[photo of James E. Stowers III and James M. Benham]

1996 was an eventful year for the global gold and natural resources markets,
as well as for our company. Although most global gold stocks slumped along with
the price of gold, several skyrocketing exploration companies provided some
fireworks during the year. Natural resources stocks, led by the strong
performance of energy companies, were one of the top-performing sectors of the
stock market. In the following pages, our investment management team provides
further details about these markets and how your fund was managed during the
year.

We also changed the name of our company. On January 1, 1997, we began serving
you under the name American Century Investments, which reflects our expanded
identity and the independent thinking common to Twentieth Century and Benham.
American Century's fund family is divided into three groups--the Benham Group,
the American Century Group and the Twentieth Century Group. The Global Gold and
Global Natural Resources funds have moved into the American Century Group
because the funds' roles as specialty "diversifier" investments match key
attributes of that group.

These are examples of how we continue to work to provide information and
services that are useful and convenient to investors in our funds. Thank you for
investing with us.

Sincerely,

/s/James E. Stowers III
James E. Stowers III
President and Chief Executive Officer
American Century Companies

/s/James M. Benham
James M. Benham
Vice Chairman
American Century Companies

2 Our Message to You American Century Investments

PERIOD OVERVIEW

Gold Bullion

After an impressive rally in January, which sent gold bullion surging to a
six-year high of $417 an ounce, the price of gold trended downward over the
remainder of the year. By the end of December, gold had dropped to $369--far
below its familiar trading range of $380-$395--posting a 5% loss for the year.

The January surge in gold resulted primarily from a short-term supply
shortage that prompted gold dealers to raise gold lease rates. As a result, gold
producers, who often borrow gold from dealers to "sell forward," curtailed their
hedging activities and also bought gold on the open market. This pushed gold
prices higher. But higher prices meant more competition among lenders and
sellers of gold. Lease rates subsided, allowing forward selling to resume more
normal volumes and sending gold back below $400 an ounce.

Throughout the remainder of the year, negative sentiment in the gold market
grew. Concerns about excess supply were fed by European central banks, who began
to sell--or talk about selling--their countries' gold reserves. Their aim in
selling the gold was to cut budget deficits in order to meet the criteria that
would allow them to take part in European monetary union. Excess supply fears
were further fueled by an announcement that the International Monetary Fund
(IMF), a global monetary organization, intended to sell 5% (some $2 billion) of
its gold reserves. Though the planned sale has not yet been approved, it played
its part in pushing gold prices lower.

Gold Stocks

Gold stocks overall reflected the poor performance of gold bullion in 1996.
Early in the year, small-cap gold stocks strongly outperformed large-caps as
huge gold finds in Indonesia and Peru drew money into the small-cap exploration
sector. But in the second half of the year, a more typical pattern of regional
performance began to reassert itself.

As a group, North American gold producers outperformed South African and
Australian producers, posting a narrowly positive return for the year (about
0.25%). South African gold producers were the worst performers, with a -15%
return for the year. Many South African mining companies have been hampered in
recent years by high production costs and work stoppages exacerbated by poor
labor relations. As is often the case, the return for Australian gold producers
(-6% for the year) fell midway between those of North America and South Africa.

GOLD RETURNS AT A GLANCE
Total Returns for the
Year Ended 12/31/96

Gold Stocks
FT-SE(R) Gold Mines Index -6.63%
African Region -15.20%
North American Region 0.25%
Australian Region -6.38%
Average Gold-Oriented Fund* 7.52%

Gold Bullion
Spot Price of Gold -5.00%

U.S. Inflation
Consumer Price Index (CPI) 3.30%

* According to Lipper Analytical Services.
Sources: Financial Times, Dow Jones

Commodities

Overall, 1996 was a good year for commodities markets, as measured by the
Goldman Sachs Commodities Index (GSCI), which posted a gain of 34%. A generally
improving U.S. economy, along with low or declining interest rates around the
globe, helped maintain stable demand for most natural resources. Most of the
GSCI's gains during the year resulted from rising crude oil and natural gas
prices.

Prices in some futures markets were extremely volatile, driven by seasonal
factors such as the weather. For example, corn and wheat futures rallied to

Annual Report Period Overview 3

PERIOD OVERVIEW

all-time highs in the first half of the year as unfavorable weather conditions
and drought fears led to expectations of disappointing U.S. crop yields. As the
year progressed, however, it became apparent that crop yields would be better
than expected. This factor, combined with weaker-than-expected demand from
China, caused grain prices to subside in the second half of the year.

The harsh winter of 1995-1996 also had a significant impact on crude oil and
natural gas markets. Coming at a time when global inventories were already at
relatively low levels, unusually cold weather sent demand for oil and gas
soaring, further depleting reserves and setting the stage for short-term supply
shortages throughout the year. The long-awaited re-entry of Iraq into the world
oil market was expected to mitigate price pressures to some extent. But as
winter weather returned late in the year, surging demand sent the price of crude
to a high of $26.75 a barrel in December. Natural gas prices followed suit.
Canadian pipeline maintenance, low gas storage levels and a cold snap in
December sent the price of natural gas to record highs.

Notable underperformers in the commodities arena were gold (discussed on the
previous page) and copper. After plummeting by nearly 34% in June in the wake of
the Sumitomo trading scandal, copper prices recovered to some extent in the
following six months. But lingering fears that hidden copper stockpiles might
exist kept prices down overall for much of the remainder of the year.

Natural Resources Stocks

Energy

As was the case with the commodities to which they are tied, energy stocks
outperformed other natural resources stocks in 1996. Stocks of integrated oil
companies benefited from improving profit margins as a result of (1) focusing
more on oil exploration and production, and (2) streamlining refining and
marketing operations by selling unproductive assets and forming "strategic
alliances" with other oil companies. An example is the joint venture in Europe
between British Petroleum and Mobil, aimed at cutting refining costs. Stocks of
oil services companies--specifically offshore drillers-- were the top performers
in the energy sector, reaping double-digit revenue and earnings growth as oil
companies increased capital spending by at least 6% during the year.

A trend toward mergers between natural gas and utilities companies boosted
natural gas stocks. Electric utility companies hope to increase earnings growth
more rapidly by moving into the unregulated natural gas business.

Basic Materials

Returns in the basic materials sector significantly lagged those of
energy-related stocks. Steel company stocks were among the worst performers,
declining by 13% in U.S. dollar terms. Though overall demand for steel was up
from 1995 levels, steel companies in different regions of the world experienced
specific problems that hurt profit margins. In North America, for example,
negative factors included concerns about added production capacity, increased
imports and economic overheating.

Base metals stocks failed to meet most analysts' expectations in 1996. Slow
economic growth--especially in Europe, which consumes a significant portion of
the world's base metals--kept inventories relatively high. The Sumitomo copper
trading scandal did not help matters, triggering a premature collapse in copper
prices and dragging most metals lower to some extent.

Chronic oversupply in the paper industry depressed paper prices throughout
the year, triggering price declines in paper stocks. The outlook for this group
may be improving, however. According to Goldman Sachs, global paper and
paperboard demand is expected to rise by 4% to 5% in 1997, while capacity for
these commodities should only expand by about 3%.

4 Period Overview American Century Investments

<TABLE>

GLOBAL GOLD

6 MONTHS(1) 1 YEAR 3 YEARS 5 YEARS LIFE OF FUND(2)

AVERAGE ANNUAL RETURNS (as of December 31, 1996)
<S> <C> <C> <C> <C> <C>
Global Gold -6.90% -2.76% -4.01% 7.92% 2.45%
Fund Benchmark+ -9.58% -6.63% -5.34% 7.22% 2.94%(4)
Average Gold-Oriented Fund(3) -6.67% 7.52% -1.67% 7.97% 2.90%
Fund's Ranking Among Gold-Oriented Funds(3) -- 38 out of 43 19 out of 30 11 out of 27 14 out of 21

(1) Not annualized.
(2) The fund's inception date was August 17, 1988.
(3) According to Lipper Analytical Services.
(4) For the period from 8/31/88 (the date nearest the fund's inception for which benchmark return data are available) to
12/31/96.

See pages 28-29 for more information about returns, the fund's benchmark and
Lipper fund rankings.
</TABLE>

[mountain graph data]

GROWTH OF $10,000 OVER THE LIFE OF THE FUND

Value on 12/31/96

MSCI World
Stock Index
$23,177

Fund
Benchmark+
$12,736

Global Gold
$12,431

Global Gold MSCI World Stock Index Fund Benchmark+

8/31/88 $10,000 $10,000 $10,000
9/30/88 $9,406 $10,426 $9,348
10/31/88 $9,417 $11,122 $9,436
11/30/88 $9,608 $11,511 $9,657
12/31/88 $9,137 $11,617 $9,187
1/31/89 $9,207 $12,039 $9,305
2/28/89 $9,985 $11,966 $10,102
3/31/89 $9,540 $11,891 $9,680
4/30/89 $8,955 $12,167 $9,086
5/31/89 $8,541 $11,871 $8,661
6/30/89 $9,167 $11,739 $9,344
7/31/89 $9,278 $13,068 $9,497
8/31/89 $9,722 $12,753 $9,974
9/30/89 $10,086 $13,115 $10,393
10/31/89 $10,439 $12,680 $10,774
11/30/89 $11,963 $13,189 $12,430
12/31/89 $11,871 $13,615 $12,323
1/31/90 $12,580 $12,981 $13,113
2/28/90 $11,891 $12,427 $12,401
3/31/90 $11,131 $11,678 $11,610
4/30/90 $9,762 $11,512 $10,196
5/31/90 $10,715 $12,726 $11,189
6/30/90 $10,066 $12,638 $10,530
7/31/90 $10,999 $12,755 $11,513
8/31/90 $10,756 $11,563 $11,249
9/30/90 $10,816 $10,347 $11,319
10/31/90 $8,860 $11,314 $9,287
11/30/90 $8,515 $11,130 $8,910
12/31/90 $9,564 $11,365 $10,001
1/31/91 $7,897 $11,784 $8,259
2/28/91 $8,592 $12,876 $8,998
3/31/91 $8,429 $12,499 $8,840
4/30/91 $8,122 $12,598 $8,529
5/31/91 $8,429 $12,886 $8,867
6/30/91 $9,094 $12,092 $9,585
7/31/91 $8,909 $12,666 $9,392
8/31/91 $7,979 $12,628 $8,402
9/30/91 $8,030 $12,962 $8,503
10/31/91 $8,541 $13,174 $9,031
11/30/91 $8,684 $12,602 $9,192
12/31/91 $8,490 $13,522 $8,987
1/31/92 $8,654 $13,274 $9,146
2/29/92 $8,316 $13,047 $8,825
3/31/92 $7,567 $12,435 $8,016
4/30/92 $7,239 $12,610 $7,673
5/31/92 $7,813 $13,113 $8,299
6/30/92 $8,316 $12,676 $8,855
7/31/92 $8,808 $12,711 $9,409
8/31/92 $8,592 $13,023 $9,236
9/30/92 $8,510 $12,906 $9,344
10/31/92 $8,151 $12,558 $8,864
11/30/92 $7,321 $12,785 $7,752
12/31/92 $7,755 $12,891 $8,254
1/31/93 $7,519 $12,937 $8,013
2/28/93 $8,330 $13,245 $8,873
3/31/93 $9,440 $14,016 $10,002
4/30/93 $10,703 $14,668 $11,510
5/31/93 $11,915 $15,008 $12,803
6/30/93 $12,675 $14,885 $13,641
7/31/93 $13,651 $15,194 $14,909
8/31/93 $12,593 $15,893 $13,703
9/30/93 $11,011 $15,602 $11,945
10/31/93 $12,891 $16,034 $13,971
11/30/93 $12,901 $15,130 $13,754
12/31/93 $14,054 $15,873 $15,017
1/31/94 $14,085 $16,922 $15,002
2/28/94 $13,375 $16,706 $14,264
3/31/94 $13,643 $15,989 $14,753
4/30/94 $12,059 $16,486 $12,941
5/31/94 $12,800 $16,531 $13,729
6/30/94 $12,101 $16,488 $13,049
7/31/94 $11,977 $16,804 $12,886
8/31/94 $12,697 $17,313 $13,666
9/30/94 $14,198 $16,861 $15,259
10/31/94 $12,810 $17,344 $13,677
11/30/94 $11,124 $16,595 $11,943
12/31/94 $11,700 $16,759 $12,494
1/31/95 $10,306 $16,510 $10,965
2/28/95 $10,967 $16,754 $11,647
3/31/95 $12,630 $17,565 $13,535
4/30/95 $12,454 $18,181 $13,271
5/31/95 $12,836 $18,340 $13,729
6/30/95 $12,846 $18,338 $13,744
7/31/95 $12,929 $19,259 $13,836
8/31/95 $13,063 $18,833 $13,911
9/30/95 $13,198 $19,385 $14,043
10/31/95 $11,411 $19,084 $12,139
11/30/95 $12,681 $19,750 $13,628
12/31/95 $12,783 $20,331 $13,641
1/31/96 $15,036 $20,703 $16,091
2/29/96 $15,315 $20,832 $16,345
3/31/96 $15,211 $21,183 $16,301
4/30/96 $15,160 $21,685 $16,250
5/31/96 $15,780 $21,707 $16,601
6/30/96 $13,351 $21,821 $14,085
7/31/96 $13,134 $21,054 $13,939
8/31/96 $13,660 $21,300 $14,188
9/30/96 $12,771 $22,138 $12,934
10/31/96 $12,771 $22,296 $13,115
11/30/96 $12,606 $23,550 $13,097
12/31/96 $12,431 $23,177 $12,736

Past performance does not guarantee future results. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost. The chart begins on 8/31/88 because it is the date nearest the
fund's 8/17/88 inception date for which index return data are available. The
line representing the fund's total return includes operating expenses (such as
transaction costs and management fees) that reduce returns, while the total
return lines of the indices do not.

PORTFOLIO AT A GLANCE
12/31/96 12/31/95
Number of Companies 55 36
Portfolio Turnover 45% 28%
Expense Ratio 0.62% 0.61%

+ From the fund's inception through February 1996, the fund's benchmark was the
Benham North American Gold Equities Index. From March 1996 to the present, the
fund's benchmark has been the FT-SE(R) Gold Mines Index.

Annual Report Global Gold 5

GLOBAL GOLD

Management Q & A

An interview with Bill Martin, senior portfolio manager of American Century
Global Gold.

How did the fund perform?

When you consider the fact that gold bullion was down by 5% for the year, the
fund's performance wasn't too bad. For the fiscal year ended December 31, 1996,
the fund returned -2.76%. While this was considerably better than the -6.63%
return of its benchmark+, it was significantly lower than the 7.52% average
return for the 43 "Gold-Oriented Funds" tracked by Lipper Analytical Services.

Why was the Lipper average return so much higher than the fund's one-year
return?

A few gold stock funds pulled up the overall average by investing in more
speculative exploration companies, several of which paid off in 1996. Our fund
invests primarily in established, large-cap gold-producing companies with proven
earnings records. The fund's five-year and life-of-fund performance figures
(listed on page 5) show that over the long haul the fund's return has pretty
much kept pace with that of the average gold fund.

[bar graph data]

GLOBAL GOLD FISCAL YEAR-BY-YEAR RETURNS (Periods ended December 31)

Global Gold FT-SE Gold Mines Index

'88 -8.63% -8.13%
'89 29.93% 34.14%
'90 -19.34% -18.84%
'91 -11.23% -10.14%
'92 -8.65% -8.16%
'93 81.22% 81.94%
'94 -16.75% -16.80%
'95 9.25% 9.18%
'96 -2.76% -6.63%

This chart illustrates the historical year-by-year volatility of the fund's
returns since its inception and compares them with the benchmark's returns. The
fund's total returns include operating expenses, while the benchmark's returns
do not.

* Return from 8/31/88 (the date nearest the fund's inception for which benchmark
return data are available) to 12/31/88.

+ From inception through February 1996, the fund's benchmark was the Benham
North American Gold Equities Index. From March 1996 to the present, the fund's
benchmark has been the FT-SE(R) Gold Mines Index. For more information about the
fund's benchmark, see the Background Information on page 28.

6 Global Gold American Century Investments

GLOBAL GOLD

But the fund did outperform its benchmark index. Why?

Though about 80% of the fund is designed to track the performance of its
benchmark index, we do have the flexibility to slightly overweight or
underweight specific stocks or regions. During the year, the fund had a
consistent underweighting versus the benchmark in South African gold stocks,
which significantly underperformed both North American and Australian gold
stocks (see page 3).

The remaining 20% of the portfolio may be invested in gold companies not
included in the fund's benchmark index. This non-index portion of the fund's
holdings was geared toward the stocks of mid- and small-cap gold producers and
was a key factor in the fund's outperformance versus the benchmark. Two
companies in particular--Getchell Gold and Euro-Nevada, which both reported
large increases in gold reserves--returned about 72% and 65%, respectively,
helping boost the fund's return.

In your opinion, what is the outlook for gold bullion in 1997?

We consider it unlikely that gold prices will rally significantly in 1997.
Though the trend toward stronger global economic growth should spur solid demand
for gold jewelry, gold's popularity as an inflation hedge has been tarnished by
the proliferation of financial instruments such as inflation-indexed bonds and
other securities that allow investors exposure to foreign currencies and
interest rates. We expect to see more volatility in gold prices than we have
over the past two years, with gold developing a new and much broader trading
range, somewhere between $330 an ounce, which has recently proven to be a strong
support level, and $400, where investor demand drops sharply and producer
selling surges.

One key to gold's performance going forward will be whether or not European
central banks are allowed to sell gold reserves as a means of writing off
portions of government debt to reduce budget deficits as European monetary union
approaches. There is a good chance that this sort of "creative accounting" will
not be allowed, but until a decision is made, concerns about large potential
gold sales will continue to cast a gloom over the market, likely causing gold to
trade at the lower end of its new range.

On the other hand, if Europe's central banks are not allowed to sell gold as
a means of meeting the monetary union criteria, they could become more
aggressive in easing already low interest rates to further stimulate economic
growth. Lower real interest rates could spur demand for gold by lowering the
"opportunity cost" of holding it--that is, people are more inclined to hold gold
when financial instruments such as bonds are yielding relatively little.

TOP TEN HOLDINGS % of fund investments
As of As of
12/31/96 6/30/96
Barrick Gold Corp. 16.0% 14.4%
Newmont Mining Corp. 9.0% 9.5%
Placer Dome, Inc. 8.7% 8.4%
TVX Gold, Inc. 4.0% 3.2%
Santa Fe Gold Corp. 4.0% 3.7%
Driefontein Consolidated Ltd. 3.9% 4.5%
Homestake Mining Co. 3.2% 3.9%
Getchell Gold Corporation 3.1% 2.9%
Euro-Nevada Mining Co., Ltd. 3.1% 2.4%
Vaal Reefs Exploration &
Mining Company Ltd. 2.8% 3.0%

Annual Report Global Gold 7

GLOBAL GOLD

What about the outlook for gold stocks?

We think the performance of large-cap gold stocks will be unexciting. Because
large-cap gold companies have more predictable cash flows and production levels,
their stock prices tend to track the movements of bullion much more closely than
small-cap gold stocks, which are largely driven by investor sentiment and new
gold finds. But there should continue to be selective opportunities for
attractive returns in some mid- and small-cap gold stocks going forward.

What are your plans for the fund over the next six months?

We are looking toward a more diversified exposure to small gold producers and
exploration companies to round out the fund's portfolio. We also want to
increase the fund's weighting in small-cap stocks to help insulate it from the
effects of movements in the gold bullion market. We plan to maintain the fund's
underweighting in South African gold stocks. Though we believe there is still
good potential value in the South African market, we feel that significant
management restructuring will be needed in order to unlock that value and
improve profit margins in the region.

[pie charts]

GEOGRAPHIC COMPOSITION (as of 12/31/96)

Canada 47%
U.S. 24%
South Africa 18%
Australia 9%
Ghana 2%

GEOGRAPHIC COMPOSITION (as of 6/30/96)

Canada 43%
U.S. 27%
South Africa 20%
Australia 8%
Ghana 2%

8 Global Gold American Century Investments

SCHEDULE OF INVESTMENTS
GLOBAL GOLD

DECEMBER 31, 1996

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

COMMON STOCKS &WARRANTS

AUSTRALIA--8.6%
1,911,000 Acacia Resources Limited(1) $ 3,722,150
100,000 Goldfields Limited(1) 194,775
1,866,578 New Crest Mining Limited 7,419,648
8,549,500 Normandy Mining Limited 11,826,523
2,200,000 Placer Pacific Limited 3,253,140
1,425,000 Plutonic Resources Ltd. 6,627,319
675,000 Sons of Gwalia NL 3,987,124
----------
37,030,679
----------
CANADA--47.4%
150,000 Arizona Star Resource Corp.(1) 1,121,853
145,000 Banro Resource Corporation
Warrants(1) 423,203
2,404,066 Barrick Gold Corp. 69,116,898
349,000 Battle Mountain Gold Co. 2,399,375
175,000 Bema Gold Corp.(1) 1,034,294
630,000 Bre-X Minerals Ltd.(1) 9,975,192
492,400 Cambior, Inc.(1) 7,257,506
100,000 Dayton Mining Corp.(1) 663,991
1,234,800 Echo Bay Mines, Ltd. 8,180,550
450,000 Euro-Nevada Mining Co., Ltd. 13,429,350
50,000 Franco Nevada Mining, Ltd. 2,289,310
400,000 Goldcorp, Inc.(1) 3,429,405
400,000 Golden Knight Resources, Inc.(1)1,926,304
250,000 Greenstone Resources Ltd.(1) 2,909,522
350,000 Indochina Goldfields (Acquired
6-13-96, Cost $3,835,616)(1)(2)4,111,638
448,800 Kinross Gold Corp.(1) 3,176,606
677,000 Meridian Gold Inc.(1) 2,784,845
566,300 Miramar Mining(1) 2,479,251
350,000 Nevsun Resources Ltd.(1) 1,991,974
1,722,600 Placer Dome, Inc. 37,466,550
191,100 Prime Resources 1,352,606
100,000 Romarco Mineral, Inc.(1) 397,665
1,169,500 Royal Oak Mines(1) 3,800,875
470,000 South Pacific Resources
Corporation(1) 1,080,263
2,232,200 TVX Gold, Inc.(1) 17,426,970
88,100 Viceroy Resources Corp.(1) 392,133

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

2,000,000 William Resources Inc.
Subscription Receipts(1)$ 1,576,067
750,000 Yamana Resources, Inc.(1) 2,325,793
250,000 Yamana Resources, Inc. Warrants(1)246,261
----------
204,766,250
----------
GHANA--2.1%
743,777 Ashanti Goldfields GDR (Acquired
4-19-94 through 4-2-96,
Cost $10,683,350)(2) 9,204,233
----------
SOUTH AFRICA--18.4%
842,892 Avgold Ltd.(1) 2,252,036
705,000 Beatrix Mines Limited 4,407,663
1,585,000 Driefontein Consolidated Ltd. 16,685,102
760,000 Elandsrand Gold Mining
Company Ltd. 3,736,240
475,000 Free State Consolidated Gold
Mines Limited 3,477,343
957,000 Kloof Gold Mining Company Ltd. 7,793,460
475,000 Randfontein Estates Gold Mining
Company Witwaterstrand Ltd. 2,456,984
190,000 Southvaal Holdings Limited 5,543,443
190,000 Vaal Reefs Exploration & Mining
Company Ltd. 12,183,392
875,000 Western Areas Gold Mining
Company Ltd. 12,063,161
285,000 Western Deep Levels Limited 8,726,355
----------
79,325,179
----------
UNITED STATES--23.5%
368,100 Crown Resources, Inc.(1) 2,254,613
205,500 Freeport-McMoRan Copper &
Gold, Inc. CI A 5,779,687
352,100 Getchell Gold Corporation(1) 13,511,837
961,276 Homestake Mining Co. 13,698,183
866,088 Newmont Mining Corp. 38,757,438
246,800 Pegasus Gold, Inc.(1) 1,866,425
1,130,900 Santa Fe Gold Corp. 17,387,588
500,000 Stillwater Mining Co. (Acquired
8-18-95, Cost $10,750,000)(1)(2)8,550,000
----------
101,805,771
----------
TOTAL INVESTMENT SECURITIES--100.0% $432,132,112
(Cost $410,844,533) ============

See Notes to Financial Statements

Annual Report Global Gold 9

SCHEDULE OF INVESTMENTS
GLOBAL GOLD

DECEMBER 31, 1996

Notes to Schedule of Investments
GDR = Global Depositary Receipt
(1) Non-income producing.
(2) Securities were 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 December 31, 1996, was $21,865,871, which
represents 5.1% of net assets.

See Notes to Financial Statements

10 Global Gold American Century Investments

<TABLE>

GLOBAL NATURAL RESOURCES

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

AVERAGE ANNUAL RETURNS (as of December 31, 1996)
<S> <C> <C> <C>
Global Natural Resources ............................................... 7.77% 15.45% 11.15%
Fund Benchmark ......................................................... 7.19% 15.95% 12.19%(3)
Average Natural Resources Fund(4) ...................................... 13.25% 32.39% 18.31%
Fund's Ranking Among Natural Resources Funds(4) ........................ -- 34 out of 40 24 out of 30

(1) Not annualized.
(2) Inception date was September 15, 1994.
(3) For the period from 9/30/94 (the date nearest the fund's inception for
which benchmark returns are available) to 12/31/96.
(4) According to Lipper Analytical Services.

See pages 28-29 for more information about returns, the fund's benchmark and
Lipper fund rankings.
</TABLE>

[mountain graph data]

GROWTH OF $10,000 OVER THE LIFE OF THE FUND

Value on 12/31/96

Fund Benchmark
$12,956

Global Natural Resources
$12,925

DJWSI
$12,712

Fund Benchmark Global Natural Resources DJWSI

Sep-94 $10,000 $10,000 $10,000
Oct-94 $10,398 $10,355 $10,267
Nov-94 $9,743 $9,737 $9,762
Dec-94 $9,711 $9,789 $9,815
Jan-95 $9,524 $9,616 $9,597
Feb-95 $9,700 $9,789 $9,699
Mar-95 $10,157 $10,227 $10,139
Apr-95 $10,535 $10,644 $10,480
May-95 $10,584 $10,675 $10,557
Jun-95 $10,409 $10,471 $10,526
Jul-95 $10,892 $10,975 $11,009
Aug-95 $10,575 $10,625 $10,803
Sep-95 $10,673 $10,728 $11,022
Oct-95 $10,441 $10,532 $10,857
Nov-95 $10,834 $10,913 $11,185
Dec-95 $11,173 $11,199 $11,496
Jan-96 $11,402 $11,335 $11,709
Feb-96 $11,378 $11,429 $11,733
Mar-96 $11,818 $11,870 $11,888
Apr-96 $12,217 $12,228 $12,177
May-96 $12,183 $12,143 $12,160
Jun-96 $12,086 $11,996 $12,172
Jul-96 $11,670 $11,636 $11,681
Aug-96 $11,921 $11,869 $11,805
Sep-96 $12,283 $12,113 $12,271
Oct-96 $12,553 $12,526 $12,284
Nov-96 $13,039 $12,970 $12,938
Dec-96 $12,956 $12,925 $12,712

Past performance does not guarantee future results. Investment return and
principal value will fluctuate, and redemption value may be more or less than
original cost. The chart begins on 9/30/94 because it is the date nearest to the
fund's 9/15/94 inception date for which benchmark return data are available. The
line representing the fund's total return includes operating expenses (such as
transaction costs and management fees) that reduce returns, while the total
return lines of the indices do not.

PORTFOLIO AT A GLANCE
12/31/96 12/31/95
Number of Companies 93 86
Portfolio Turnover 53% 39%
Expense Ratio 0.76% 0.76%

Annual Report Global Natural Resources 11

GLOBAL NATURAL RESOURCES

Management Q & A

An interview with Joe Sterling, portfolio manager of American Century Global
Natural Resources.

How did the fund perform?

For the fiscal year ended December 31, 1996, the fund had a total return of
15.45%, compared to the 32.39% average return for the 40 "Natural Resources
Funds" tracked by Lipper Analytical Services. The fund's return was more
comparable to that of its benchmark (a composite of the basic materials and
energy sectors of the Dow Jones World Stock Index), which returned 15.95% for
the period.

Why was the Lipper average return so much higher than the fund's return?

Many members of the fund's Lipper peer group invest almost exclusively in
energy-related stocks, which were far and away the best performers in the
natural resources category during the year. While the fund does invest a
majority of its assets in energy-related stocks, it also has a significant
weighting in basic materials stocks, such as steel, paper and precious metals,
which had negative returns for the year.

In addition, the fund tends to hold stocks of large natural resources
companies based in countries with well-developed economies. Though this
structure is intended to give investors a broad representation of global natural
resources stocks, it limits the fund's exposure to small-cap stocks.

[bar graph data]

GLOBAL NATURAL RESOURCES
FISCAL YEAR-BY-YEAR RETURNS (Periods ended December 31)

Global Natural Resources DJWSI+
'94 -2.11% -2.89%
'95 14.41% 15.06%
'96 15.45% 15.95%

* Return from 9/30/94 (the date nearest the fund's inception for which benchmark
return data are available) to 12/31/94.

12 Global Natural Resources American Century Investments

GLOBAL NATURAL RESOURCES

How was the fund positioned during the period?

The fund's structure was similar to that of its benchmark, but we maintained
several key under- and overweightings that benefited the fund. First, the fund
maintained underweightings in the paper and steel sectors, which both performed
poorly (see the discussion on page 4).

The fund was also underweighted in Japanese natural resources stocks, which
turned in the worst performance among the world's developed markets in 1996. On
top of the fact that the Japanese economy has been mired in a recession for the
past five years, Japan's natural resources firms have never been very
competitive on a global level, partially because the country is not particularly
rich in natural resources. Though Japanese companies are currently attempting to
become more competitive by branching out into natural resources exploration and
production, in the past they have typically not owned or operated natural
resources properties. Instead, they purchased resources from others and resold
them in their home markets.

The fund's weighting in U.S. stocks increased during the year. Why?

Actually, we were looking to increase our holdings in oil services companies,
and many of these happened to be U.S. companies with global exposure. With the
expectation that oil services companies will continue to see strong demand and
pricing globally, we feel that selected stocks in this sector may perform very
well in 1997.

TOP TEN HOLDINGS % of fund investments
As of As of
12/31/96 6/30/96
Exxon Corp. 7.6% 7.6%
Royal Dutch Petroleum 6.7% 7.0%
British Petroleum Co. plc 4.2% 3.0%
Mobil Corp. 3.4% 4.0%
Chevron Corp. 2.7% 3.8%
Schlumberger, Ltd. 2.5% 2.3%
Ente Nazionale 2.3% --
Texaco Inc. 2.2% 2.2%
Amoco Corp. 2.1% 2.5%
Total-Cie Franc Des 1.8% 1.8%

Were you able to add any emerging markets stocks to the fund's portfolio?

Yes. We bought stock in Southern Peru Copper Corp., which operates one of the
highest-yielding and efficient copper operations in the world. With estimated
1996 cash cost of production at $0.47 per pound, they are also one of the
world's lowest-cost copper producers. An added attraction was the stock's low
valuation relative to its peers.

We also added some shares of Tubos de Acero, a Mexican oil service/steel
company that makes seamless steel pipes used in oil and gas exploration
projects. With fast-growing exploration and production companies such as Pemex
(the Mexican national oil company), Petrobas and YPF (a large Argentine oil
conglomerate) on its customer list, we feel the company is well positioned to
benefit from increased drilling activity in Mexico, Brazil and Argentina.

What do you think is ahead for natural resources stocks in 1997?

On the demand side, global economic growth should continue to be fairly
stable. Consensus estimates predict European economic growth of about 2.5%, with
the U.S. at about 2.8%, Latin America at 4%, and Asia (excluding Japan) at about
6.5%. The wild card is Japan, where dismal economic growth may slow even further
in the coming year. Overall, these growth estimates point to generally greater
natural resources consumption in 1997, which we believe should benefit natural
resource-based companies. One possible

Annual Report Global Natural Resources 13

threat to this scenario would be sharply accelerating growth, which could
trigger aggressive interest rate increases by the world's major central banks.
This would likely have negative implications for stocks in general, since higher
rates make bonds an attractive alternative to stocks.

What are your plans for the fund over the next six months?

With the return of Iraq to the world oil market and the end of winter
approaching, we expect that oil inventories will begin to build toward more
normal levels, helping oil prices to moderate. We may therefore look to cut back
on some of the fund's energy-related stocks in the coming months. At the same
time, we feel that oil refiners have the potential to improve their earnings as
oil prices moderate and partnerships like the BP/Mobil joint venture (discussed
on page 4) begin to exhibit their cost-saving potential. We may also look to
expand our basic materials holdings, especially the stocks of base metals, for
which we expect to see stable demand in the U.S. We also think there are
opportunities for continued growth in natural gas stocks going forward. This
should be fueled by (1) continued steady demand for natural gas and (2) the
likelihood of continued merger activity between the electric utility and natural
gas industries.

[pie charts]

INDUSTRY WEIGHTINGS (as of 12/31/96) GEOGRAPHIC COMPOSITION (as of 12/31/96)

Energy 72% U.S. 51%
Basic Materials 28% Europe 28%
Asia/Pacific 9%
Americas (excluding U.S.) 9%
South Africa 3%

INDUSTRY WEIGHTINGS (as of 6/30/96) GEOGRAPHIC COMPOSITION (as of 6/30/96)

Energy 59% U.S. 46%
Basic Materials 41% Europe 27%
Asia/Pacific 15%
Americas (excluding U.S.) 9%
South Africa 3%

14 Global Natural Resources American Century Investments

SCHEDULE OF INVESTMENTS
GLOBAL NATURAL RESOURCES

DECEMBER 31, 1996

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

COMMON STOCKS

AUSTRALIA--2.0%
Basic Materials
28,030 CRA Limited $ 440,106
60,876 WMC Limited 383,784
70,000 Woodside Petroleum Ltd. 511,423
---------
1,335,313
---------
AUSTRIA--0.7%
Energy
4,000 OMV AG 451,157
---------
CANADA--7.7%
Basic Materials
20,000 Inco Ltd. 637,500
18,600 Placer Dome, Inc. 404,550
10,000 Potash Corp. of Saskatchewan Inc. 850,000
12,800 Rio Algom Ltd. 288,000
35,000 TVX Gold, Inc.(1) 273,258
Energy
40,000 Anderson Exploration Ltd.(1) 516,600
28,000 Canadian Natural Resources Ltd.(1)768,187
18,600 Norcen Energy Resources, Inc. 412,583
15,000 Renaissance Energy Ltd.(1) 510,580
48,000 Tarragon Oil & Gas Ltd.(1) 525,355
---------
5,186,613
---------
FRANCE--3.9%
Basic Materials
2,200 Imetal 324,701
Energy
12,000 Elf Aquitaine SA 1,092,023
15,250 Total-Cie Franc Des 1,239,981
---------
2,656,705
---------
GERMANY--2.2%
Basic Materials
800 DeGussa AG 361,818
1,414 Viag AG 554,582
Energy
13,000 RWE AG 550,390
---------
1,466,790
---------

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

ITALY--2.3%
Energy
300,000 Ente Nazionale(1) $1,538,538
---------
JAPAN--5.3%
Basic Materials
180,000 NKK Corporation(1) 404,721
47,000 Nippon Paper Industries 218,642
223,000 Nippon Steel Corporation 657,012
34,000 Oji Paper Co. Ltd. 214,697
136,000 Sumitomo Metals Industries 333,908
100,000 Toho Zinc 430,737
Energy
80,000 Cosmo Oil Company 383,873
100,000 Japan Energy Corporation 271,365
32,000 Mitsubishi Oil Company 191,041
50,000 Nippon Oil Company 256,289
17,000 Tonen Corporation 197,708
---------
3,559,993
---------
MALAYSIA--0.3%
Basic Materials
200,000 Malaysia Mining Corporation Bhd 231,287
---------
MEXICO--0.6%
Basic Materials
25,000 Tubos de Acero de Mexico SA
ADR(1) 396,875
---------
NETHERLANDS--6.7%
Energy
25,900 Royal Dutch Petroleum 4,539,206
---------
NEW ZEALAND--1.0%
Basic Materials
111,600 Carter, Holt, Harvey 253,022
Energy
150,000 Fletcher Challenge Energy 434,375
---------
687,397
---------
NORWAY--0.7%
Energy
26,200 Saga Petroleum ASA CI A 437,914
---------

See Notes to Financial Statements

Annual Report Global Natural Resources 15

SCHEDULE OF INVESTMENTS
GLOBAL NATURAL RESOURCES

DECEMBER 31, 1996

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

PERU--0.5%
Basic Materials
25,000 Southern Peru Copper Corp. $ 365,625
---------
SOUTH AFRICA--2.8%
Basic Materials
7,000 Anglo American Corp. of
South Africa 385,273
23,000 Driefontein Consolidated Ltd. 242,118
95,000 Gencor 345,196
8,000 Gold Fields of South Africa 220,584
35,000 Sasol Ltd. 415,197
4,000 Vaal Reefs Exploration & Mining
Company Ltd. 256,492
---------
1,864,860
---------
SOUTH KOREA--0.3%
Basic Materials
11,000 Pohang Iron & Steel ADR 222,750
---------
SPAIN--1.3%
Energy
22,000 Respol SA 843,483
---------
SWEDEN--1.4%
Basic Materials
14,000 Assidoman(1) 388,892
20,000 Stora Kopparbergs Bergslags
Aktiebolag CI A 274,856
19,000 Trelleborg AB 251,390
---------
915,138
---------
UNITED KINGDOM--8.7%
Basic Materials
140,000 British Steel 384,799
75,000 Bunzl 300,544
50,000 RTZ Corporation 801,878
Energy
235,093 British Petroleum Co. plc 2,820,190
75,000 Enterprise Oil plc 832,917
175,000 Lasmo 713,256
---------
5,853,584
---------

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

UNITED STATES--47.6%
Basic Materials
14,800 Cyprus Amax Minerals Co. $ 345,950
15,000 Fort Howard Corp.(1) 415,313
10,999 Freeport-McMoRan Copper &
Gold, Inc. CI B 328,595
10,600 Halliburton Co. 638,650
13,000 Input/Output Inc.(1) 240,500
10,000 International Paper Co. 403,750
6,800 Mead Corp. 395,250
10,100 Newmont Mining Corp. 451,975
11,000 Nucor Corp. 561,000
5,500 Reynolds Metals Co. 310,063
8,000 Weyerhaeuser Co. 379,000
7,500 Willamette Industries, Inc. 522,188
Energy
17,000 Amerada Hess Corp. 983,875
17,600 Amoco Corp. 1,416,800
13,000 Anadarko Petroleum Corp. 841,750
5,000 Atlantic Richfield Co. 662,500
11,200 Burlington Resources, Inc. 564,200
28,000 Chevron Corp. 1,820,000
31,800 Dresser Industries, Inc. 985,800
10,000 El Paso Natural Gas Co. 505,000
11,000 Enron Corp. 474,375
10,000 Ensco International Inc.(1) 485,000
52,000 Exxon Corp. 5,096,000
12,000 Kerr-McGee Corp. 864,000
15,000 Louisiana Land & Exploration 804,375
18,500 Mobil Corp. 2,261,625
24,000 Newfield Exploration Co.(1) 624,000
35,000 Noble Drilling Corp.(1) 695,625
26,000 Occidental Petroleum Corp. 607,750
20,000 PanEnergy Corp. 900,000
13,700 Phillips Petroleum Co. 606,225
14,000 Pogo Producing Co. 661,500
17,000 Schlumberger, Inc. 1,697,875
15,000 Smith International Inc.(1) 673,125

See Notes to Financial Statements

16 Global Natural Resources American Century Investments

SCHEDULE OF INVESTMENTS
GLOBAL NATURAL RESOURCES

DECEMBER 31, 1996

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

15,000 Texaco Inc. $ 1,471,875
13,000 Transocean Offshore 814,125
18,000 Union Pacific Resources 526,500
---------
32,036,134
---------
TOTAL COMMON STOCKS--96.0% 64,589,362
(Cost $59,526,021) ---------

TEMPORARY CASH INVESTMENTS--4.0%
Repurchase Agreement, Morgan Stanley & Co. Inc.,
(U.S. Treasury obligations), in a joint trading
account at 6.25%, dated 12-31-96, due
1-2-97 (Delivery value $2,700,938) 2,700,000
(Cost $2,700,000) ---------

TOTAL INVESTMENT SECURITIES--100.0% $67,289,362
(Cost $62,226,021) ===========

Notes to Schedule of Investments
ADR = American Depositary Receipt
(1) Non-income producing.

See Notes to Financial Statements

Annual Report Global Natural Resources 17

STATEMENTS OF ASSETS AND LIABILITIES

GLOBAL GLOBAL
GOLD NATURAL RESOURCES

DECEMBER 31, 1996

ASSETS
<S> <C> <C>
Investment securities, at value (identified cost of $410,844,533 and
$62,226,021, respectively) (Note 3) ........................................ $432,132,112 $67,289,362
Cash ............................................................................ -- 54,555
Receivable for investments sold ................................................. 5,400,483 --
Dividends and interest receivable ............................................... 537,937 97,910
Prepaid expenses and other assets ............................................... 7,453 24,098
------------ ------------
438,077,985 67,465,925
------------ ------------

LIABILITIES
Disbursements in excess of demand deposit cash .................................. 1,480,639 161,638
Bank overdraft .................................................................. 3,172,037 --
Payable for investments purchased ............................................... -- 1,167,012
Payable for capital shares redeemed ............................................. 572,270 66,940
Payable to affiliates (Note 2) .................................................. 237,027 36,388
Accrued expenses and other liabilities .......................................... 29,463 12,561
------------ ------------
5,491,436 1,444,539
------------ ------------
Net Assets Applicable to Outstanding Shares ..................................... $432,586,549 $66,021,386
============ ============

CAPITAL SHARES, $10.00 PAR VALUE
Authorized ...................................................................... 2,000,000,000 2,000,000,000
============ ============
Outstanding ..................................................................... 38,181,507 5,542,442
============ ============
Net Asset Value Per Share ....................................................... $11.33 $11.91
============ ============

NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) ......................................... $407,745,080 $60,513,652
Undistributed net investment income ............................................. 345,530 31,595
Accumulated undistributed net realized gain from investments and
foreign currency transactions .............................................. 3,211,312 411,802
Net unrealized appreciation on investments and translation of
assets and liabilities in foreign currencies (Note 3) ........................ 21,284,627 5,064,337
------------ ------------
$432,586,549 $66,021,386
============ ============
</TABLE>

See Notes to Financial Statements

18 Statements of Assets and Liabilities American Century Investments
<TABLE>

STATEMENTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 1996

GLOBAL GLOBAL
GOLD NATURAL RESOURCES

INVESTMENT INCOME
<S> <C> <C>
Income:
Dividends (net of foreign taxes withheld of $291,493 and $79,696, respectively) ... $5,573,395 $1,135,467
Interest .......................................................................... 348,475 73,704
--------- ---------
5,921,870 1,209,171
--------- ---------
Expenses (Note 2):
Investment advisory fees .......................................................... 1,645,729 167,049
Transfer agency fees .............................................................. 644,392 113,382
Administrative fees ............................................................... 525,854 45,527
Printing and postage .............................................................. 255,981 16,614
Custodian fees .................................................................... 127,595 43,077
Registration and filing fees ...................................................... 52,223 25,297
Auditing and legal fees ........................................................... 38,133 6,966
Telephone expenses ................................................................ 73,936 7,681
Directors' fees and expenses ...................................................... 16,118 8,930
Organizational expenses ........................................................... -- 9,207
Other operating expenses .......................................................... 33,998 13,439
--------- ---------
Total expenses .................................................................. 3,413,959 457,169
Custodian earnings credits (Note 4) ............................................... (26,730) (5,382)
Amount waived ..................................................................... -- (92,956)
--------- ---------
Net expenses .................................................................... 3,387,229 358,831
--------- ---------
Net investment income. ............................................................ 2,534,641 850,340
--------- ---------

REALIZED AND UNREALIZED GAIN (LOSS) ON

INVESTMENTS AND FOREIGN CURRENCY (NOTE 3)
Net realized gain (loss) on:
Investments ..................................................................... 65,250,516 1,507,149
Foreign currency transactions ................................................... (56,005) 2,767
--------- ---------
65,194,511 1,509,916
--------- ---------
Change in net unrealized appreciation (depreciation) on:
Investments ..................................................................... (75,029,773) 3,423,082
Translation of assets and liabilities in foreign currencies ..................... (3,403) 2,915
--------- ---------
(75,033,176) 3,425,997
--------- ---------
Net realized and unrealized gain (loss) on
investments and foreign currency .................................................. (9,838,665) 4,935,913
--------- ---------
Net Increase (Decrease) in Net Assets
Resulting from Operations. ........................................................ $(7,304,024) $5,786,253
========= =========
</TABLE>

See Notes to Financial Statements

Annual Report Statements of Operations 19

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

YEARS ENDED DECEMBER 31, 1996
AND DECEMBER 31, 1995
GLOBAL GLOBAL
GOLD NATURAL RESOURCES

Increase (Decrease) in Net Assets 1996 1995 1996 1995

OPERATIONS
<S> <C> <C> <C> <C>
Net investment income .............................$ 2,534,641 $ 990,117 $ 850,340 $ 479,241
Net realized gain (loss) on investments and foreign
currency transactions ........................... 65,194,511 (18,376,439) 1,509,916 407,901
Change in net unrealized appreciation (depreciation) on
investments and translation of assets and liabilities
in foreign currencies ........................... (75,033,176) 62,195,695 3,425,997 2,144,025
---------- ---------- ---------- ----------
Net increase (decrease) in net assets resulting
from operations ................................. (7,304,024) 44,809,373 5,786,253 3,031,167
---------- ---------- ---------- ----------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ........................ (2,133,106) (374,822) (823,849) (380,010)
From net realized gains from investment
transactions .................................... (23,423,049) -- (1,137,854) (375,581)
---------- ---------- ---------- ----------
Decrease in net assets from distributions ......... (25,556,155) (374,822) (1,961,703) (755,591)
---------- ---------- ---------- ----------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ......................... 591,451,544 634,985,010 82,201,900 37,771,225
Proceeds from reinvestment of distributions ....... 22,848,730 339,282 1,095,990 721,605
Payments for shares redeemed ...................... (686,546,686) (710,095,220) (51,258,512) (29,582,694)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets from
capital share transactions ...................... (72,246,412) (74,770,928) 32,039,378 8,910,136
---------- ---------- ---------- ----------
Net increase (decrease) in net assets ............. (105,106,591) (30,336,377) 35,863,928 11,185,712

NET ASSETS
Beginning of year ................................. 537,693,140 568,029,517 30,157,458 18,971,746
---------- ---------- ---------- ----------
End of year ....................................... $432,586,549 $537,693,140 $66,021,386 $30,157,458
=========== =========== ========== ==========
Undistributed net investment income ............... $345,530 -- $31,595 $5,798
=========== =========== ========== ==========

TRANSACTIONS IN SHARES OF THE FUNDS
Sold .............................................. 43,103,702 52,760,173 7,111,409 3,649,431
Issued in reinvestment of distributions ........... 2,023,411 27,188 93,973 68,911
Redeemed .......................................... (50,429,618) (59,426,047) (4,492,484) (2,862,561)
---------- ---------- ---------- ----------
Net increase (decrease) ........................... (5,302,505) (6,638,686) 2,712,898 855,781
=========== =========== ========== ==========
</TABLE>

See Notes to Financial Statements

20 Statements of Changes in Net Assets American Century Investments

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1996

1. Organization and Summary of Significant Accounting Policies

Organization--American Century Quantitative Equity Funds (the Corporation) is
registered under the Investment Company Act of 1940 as an open-end management
investment company. Global Gold and Global Natural Resources (the Funds) are two
of the five funds issued by the Corporation. The Funds are non-diversified under
the 1940 Act. Global Gold's investment objective is to seek to realize a total
return (capital growth and dividends) consistent with investment in securities
of companies that are engaged in mining, processing, fabricating or distributing
gold or other precious metals throughout the world. On February 12, 1996,
shareholders of Global Gold approved proposals to change the Fund's investment
objective, name and benchmark index. Prior to that date, the Fund focused on
investments in North American gold-producing companies. Accordingly, it's
benchmark index was changed from the Benham North American Gold Equities Index
to the FT-SE Gold Mines Index, which is composed of gold company stocks from
around the world. Global Natural Resources' investment objective is to seek to
realize a total return (capital growth and dividends) consistent with investment
in companies that are engaged in the natural resources industries. The Funds
invest primarily in equity securities. The following significant accounting
policies, related to the Funds, are in accordance with accounting policies
generally accepted in the investment company industry.

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

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

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

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

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

Repurchase Agreements--The Funds may enter into repurchase agreements with
institutions that the Funds' investment advisor, Benham Management Corporation
(BMC), has determined are creditworthy pursuant to criteria adopted by the Board
of Directors. Each repurchase agreement is recorded at cost. The Funds require
that the securities purchased in a repurchase transaction be transferred to the
custodian in a manner sufficient to enable the Funds to obtain those securities
in the event of a default under the repurchase agreement. BMC monitors, on a
daily basis, the value of the securities transferred to ensure that the value,
including accrued interest, of the securities under each repurchase agreement is
greater than amounts owed to the Funds under each repurchase agreement.

Annual Report Notes to Financial Statements 21

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1996

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

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

Organization Costs--Costs incurred by Global Natural Resources in connection
with the organization, initial registration, and public offering of shares are
being amortized on a straight-line basis over a five-year period ending
September 1999.

- --------------------------------------------------------------------------------
2. Transactions with Related Parties

Additionally, Global Natural Resources pays the following annual investment
advisory fee to BMC based on its average daily closing net assets:

0.05% of the first $500 million
0.04% of the next $500 million
0.03% of average daily net assets over $1 billion

The Corporation has entered into an Administrative Services and Transfer
Agency Agreement with ACSC. The Agreement was formerly with Benham Financial
Services, Inc. Under the Agreement, ACSC provides administrative service and
transfer agency functions necessary to operate the Funds. Fees for these
services are based on transaction volume, number of accounts, and average daily
closing net assets of all funds advised by BMC.

The Corporation has an additional agreement with BMC pursuant to which BMC
established a contractual expense guarantee that limits each Fund's expenses
(excluding expenses such as brokerage commissions, taxes, interest, custodian
earnings credits and extraordinary expenses) to .75% of each Fund's average
daily closing net assets. The agreement provides further that BMC may recover
amounts (representing expenses in excess of each Fund's expense guarantee rate)
absorbed during the preceding 11 months, if, and to the extent that, for any

22 Notes to Financial Statements American Century Investments

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1996

given month, each Fund's expenses are less than the expense guarantee rate in
effect at that time. The expense guarantee rate is renewed annually in June.

The payables to affiliates as of December 31, 1996, based on the above
agreements were as follows:

Global
Global Natural
Gold Resources

Investment Advisor .............. $111,189 $19,026
Administrative Services ......... 73,707 8,214
Transfer Agent ............. 52,131 9,148
-------- --------
$237,027 $36,388
======== ========

The Corporation has a Distribution Agreement with ACIS, which is responsible
for promoting sales of and distributing the Funds' shares. This Agreement was
formerly with Benham Distributors, Inc.

- --------------------------------------------------------------------------------
3. Investment Transactions

The aggregate cost of common stocks purchased for the year ended December 31,
1996, in Global Gold and Global Natural Resources totaled $239,345,260 and
$54,524,964, respectively. Proceeds from common stocks sold in Global Gold and
Global Natural Resources totaled $333,435,284 and $24,469,538, respectively.

On December 31, 1996, the composition of unrealized appreciation and
(depreciation) of investment securities based on the aggregate cost of
investments for federal income tax purposes was as follows:

Global
Global Natural
Gold Resources

Appreciation $88,078,582 $7,182,993
(Depreciation) (70,899,945) (2,164,223)
----------- ----------
Net Appreciation $17,178,637 $5,018,770
=========== ==========
Federal Tax Cost $414,953,475 $62,270,592
=========== ==========

- --------------------------------------------------------------------------------
4. Expense Offset Arrangements

The Funds' Statements of Operations reflect custodian earnings credits. This
amount is used to offset the custodian fees payable by the Funds to the
custodian bank. The credits are earned when the Funds maintain a balance of
uninvested cash at the custodian bank. Beginning with the year ended December
31, 1995, the ratios of operating expenses to average net assets shown in the
Financial Highlights are calculated as if these credits had not been earned.

- --------------------------------------------------------------------------------
5. Subsequent Events

The following name changes became effective January 1, 1997:
<TABLE>

NEW NAMES FORMER NAMES
<S> <C> <C>
Funds' Issuer: American Century Quantitative Equity Funds (1) Benham Equity Funds
Funds: American Century Global Gold Fund(1) Benham Global Gold Fund
American Century Global Natural Resources Fund(1) Benham Global Natural Resources Index Fund
Parent Company: American Century Companies, Inc. Twentieth Century Companies, Inc.
Distributor: American Century Investment Services, Inc. Twentieth Century Securities, Inc.
Transfer Agent: American Century Services Corporation Twentieth Century Services, Inc.

(1) New names are subject to shareholder approval.
</TABLE>

Annual Report Notes to Financial Statements 23

FINANCIAL HIGHLIGHTS
GLOBAL GOLD

For a Share Outstanding Throughout the Years Ended December 31

1996 1995 1994 1993 1992

PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C>
Beginning of Year ............................... $12.37 $11.33 $13.67 $7.55 $8.28
------ ------ ------ ----- -----
Income from Investment Operations
Net Investment Income ......................... .06 .02 .03 .01 .02
Net Realized and Unrealized Gain (Loss)
on Investment Transactions .................... (.40) 1.03 (2.32) 6.12 (.73)
------ ------ ------ ----- -----
Total from
Investment Operations ......................... (.34) 1.05 (2.29) 6.13 (.71)
------ ------ ------ ----- -----
Distributions
From Net Investment Income .................... (.06) (.01) (.02) (.01) (.02)
From Net Realized Gains
on Investment Transactions .................... (.64) -- -- -- --
In Excess of Net Realized Gains ............... -- -- (.03) -- --
------ ------ ------ ----- -----
Total Distributions ........................... (.70) (.01) (.05) (.01) (.02)
------ ------ ------ ----- -----
Net Asset Value, End of Year .................... $11.33 $12.37 $11.33 $13.67 $7.55
====== ====== ====== ====== =====
Total Return(1) ............................... (2.76%) 9.25% (16.75%) 81.22% (8.65%)

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets (2) ..................... .62% .61% .61% .72% .75%
Ratio of Net Investment Income
to Average Net Assets ......................... .46% .17% .20% .23% .23%
Portfolio Turnover Rate ....................... 45% 28% 42% 28% 53%
Average Commission Paid per
Investment Security Traded .................... $.029 $.035 --(3) --(3) --(3)
Net Assets, End
of Year (in thousands) ........................ $432,587 $537,693 $568,030 $616,347 $163,777

(1)Total return assumes reinvestment of dividends and capital gains
distributions, if any.

(2)The ratios for the periods subsequent to December 31, 1994, include expenses
paid through expense offset arrangements.

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

</TABLE>

See Notes to Financial Statements

24 Financial Highlights American Century Investments

FINANCIAL HIGHLIGHTS
GLOBAL NATURAL RESOURCES

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

1996 1995 1994(1)

PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C>
Beginning of Period .................................................... $10.66 $9.61 $10.00
------ ----- ------
Income from Investment Operations
Net Investment Income ................................................ .17 .16 .07
Net Realized and Unrealized Gain (Loss)
on Investment Transactions ........................................... 1.46 1.22 (.42)
------ ----- ------
Total from
Investment Operations ................................................ 1.63 1.38 (.35)
------ ----- ------
Distributions
From Net Investment Income ........................................... (.17) (.16) (.04)
From Net Realized Gains
on Investment Transactions ........................................... (.21) (.17) --
------ ----- ------
Total Distributions .................................................. (.38) (.33) (.04)
------ ----- ------
Net Asset Value, End of Period ......................................... $11.91 $10.66 $9.61
====== ====== =====
Total Return(2) ...................................................... 15.45% 14.41% (3.48%)

RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets(3) ............................................. .76% .76% --
Ratio of Net Investment Income
to Average Net Assets. ............................................... 1.78% 2.02% 2.74%(4)
Portfolio Turnover Rate .............................................. 53% 39% --
Average Commission Paid per Investment Security Traded ............... $.030 $.028 --(5)
Net Assets, End
of Period (in thousands) ............................................. $66,021 $30,157 $18,972

(1) September 15, 1994 (Inception) through December 31, 1994

(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) The ratios for the periods subsequent to December 31, 1994, include
expenses paid through expense offset arrangements.

(4) Annualized

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

See Notes to Financial Statements

Annual Report Financial Highlights 25

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
American Century Quantitative Equity Funds:

We have audited the accompanying statements of assets and liabilities,
including the schedules of investment securities, of American Century Global
Gold and American Century Global Natural Resources (two of the five funds
comprising American Century Quantitative Equity Funds) (the Funds) as of
December 31, 1996, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the periods
presented. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
American Century Global Gold and American Century Global Natural Resources as of
December 31, 1996, the results of their operations, the changes in their net
assets and their financial highlights for the periods indicated above, in
conformity with generally accepted accounting principles.

/s/KPMG Peat Marwick LLP
Kansas City, Missouri
February 7, 1997

26 Independent Auditors' Report American Century Investments

IMPORTANT NOTICE FOR
ALL IRA AND 403(b) SHAREHOLDERS

Annual Report Important Notice 27

BACKGROUND INFORMATION

Investment Philosophy & Policies

The American Century group offers seven equity funds, including three
"specialty" equity funds that concentrate their holdings in specific industries
or sectors of the stock market. These funds typically respond differently than
general equity funds to changing market or economic conditions. The funds are
managed to provide a broad representation of the respective industries.

Global Gold seeks to realize a total return consistent with investment in
securities of companies that are engaged in mining, processing, fabricating or
distributing gold or other precious metals throughout the world.

Normally, at least 65% of the fund's assets will be invested in securities of
issuers engaged in gold operations, including those of gold mining finance
companies, as well as operating companies with long-, medium- or short-term gold
mines.

As part of its global investment strategy, Global Gold will normally invest
in securities of issuers located in at least three different countries, one of
which may be the United States.

Global Natural Resources seeks to realize a total return consistent with
investment in companies that are engaged in the natural resources industries.

The fund invests primarily in the stocks of foreign and U.S. companies
included in the Energy and Basic Materials sectors of the Dow Jones World Stock
Index1 (DJWSI), excluding chemical companies.

Comparative Indices

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

The FT-SE(R) Gold Mines Index2 consists of 31 gold mining companies in five
countries and is considered a broad measure of the worldwide gold equities
market.

The Dow Jones World Stock Index (DJWSI), created by the editors of The Wall
Street Journal, consists of 2,800 stocks in 29 countries and is divided into
nine broad market sectors. We created the Global Natural Resources fund's
benchmark index using the companies represented in two of these sectors--Basic
Materials and Energy. We altered the Basic Materials sector to exclude chemical
companies because they do not stockpile natural resources.

The Morgan Stanley World Stock Index is a widely followed group of stocks
from 22 different countries including the U.S. and Canada.

Lipper Rankings

Lipper Analytical Services, Inc. is an independent mutual fund ranking
service that groups funds according to their investment objectives. Rankings are
based on average annual returns for each fund in a given category for the
periods indicated. Rankings are not included for periods less than one year. The
funds in Lipper's Gold-Oriented Funds category invest at least 65% of their
assets in shares of gold mines, gold-oriented mining finance houses, gold coins
or bullion. The funds in Lipper's Natural Resources Funds category invest at
least 65% of their assets in natural resources stocks.

PORTFOLIO MANAGEMENT TEAM

Senior Portfolio Manager Bill Martin

Portfolio Manager Joe Sterling

1 The DJWSI is the property of Dow Jones & Company, Inc., which is not
affiliated with American Century.

2 The FT-SE Gold Mines Index is calculated by FT-SE International Limited in
conjunction with the Institute of Actuaries. The FT-SE Gold Mines Index is a
trademark of the London Stock Exchange Limited and the Financial Times Ltd.
and is used by FT-SE International Limited under license. FT-SE International
Limited does not sponsor, endorse or promote the fund.

28 Background Information American Century Investments

GLOSSARY

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 pages 24-25.

Portfolio Statistics

Number of Companies--the number of different companies held by a fund on a
given date.

Types of Stocks

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

Medium-Capitalization ("Mid-Cap") Stocks--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--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.

Annual Report Glossary 29

[american century logo]
American
Century(sm)

P.O. Box 419200
Kansas City, Missouri
64141-6200

Person-to-Person Assistance:
1-800-345-2021 or 816-531-5575

Automated Information Line:
1-800-345-8765

Telecommunications Device for the Deaf:
1-800-634-4113 or 816-753-1865

Fax: 816-340-7962

Internet: www.americancentury.com

American Century Quantitative Equity Funds

Investment Manager
Benham Management Corporation

American Century Investment Services, Inc.

9702 [recycled logo]
SH-BKT-7798 Recycled

[BOOK THREE]

ANNUAL REPORT

[american century logo]
American
Century(sm)

December 31, 1996

AMERICAN
CENTURY
GROUP

Utilities

[front cover]

TABLE OF CONTENTS

Report Highlights ..................................1
Our Message to You .................................2
Period Overview ....................................3
Performance & Portfolio Information ................4
Management Q & A ...................................5
Schedule of Investments ............................8
Statement of Assets and Liabilities ...............10
Statement of Operations ...........................11
Statements of Changes in Net Assets ...............12
Notes to Financial Statements .....................13
Financial Highlights ..............................16
Independent Auditors' Report ......................17
IRA/403(b) Information ............................18
Background Information
Investment Philosophy & Policies .............20
Comparative Indices ..........................20
Lipper Rankings ..............................20
Portfolio Management Team ....................20
Glossary ..........................................21

American Century Investments--Family of Funds

Benham Group American Century Group Twentieth Century Group

MONEY MARKET FUNDS ASSET ALLOCATION &
GOVERNMENT BOND FUNDS BALANCED FUNDS GROWTH FUNDS
DIVERSIFIED BOND FUNDS CONSERVATIVE EQUITY FUNDS INTERNATIONAL FUNDS
MUNICIPAL BOND FUNDS SPECIALTY FUNDS

Utilities

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

American Century Investments

REPORT HIGHLIGHTS

Period Overview

o While the broad U.S. stock market posted returns of more than 20% in 1996,
utilities stocks produced modest gains.

o Rising interest rates, especially during the first half of the year, were the
main cause behind the weaker performance of utilities stocks.

o Deregulation also had a negative impact on utilities stocks. Increased
competition led to lower profit margins and slower earnings growth.

o On the positive side, natural gas stocks gained more than 30% as strong
consumer demand pushed prices higher.

o Increased merger activity also benefited utilities stocks. Several
significant telecommunications mergers occurred in 1996, as well as a series
of mergers between natural gas companies and electric utilities. We believe
that these mergers will improve the competitive strength of the industry
going forward.

Utilities

o The fund underperformed both the New York Stock Exchange (NYSE) Utilities
Index and its Lipper peer group average during the year. Both the index and
the peer group benefited from non-utility holdings, whereas the fund remained
fully invested in companies that provide utility services.

o Because the NYSE Utilities Index recently added several non-utility stocks,
we created an internal benchmark index consisting of 182 companies that
provide electricity, natural gas, telecommunications and water services to
the public. This index is more representative of the fund's investment
objective.

o To bring the fund more in line with its new benchmark, we expanded the fund's
weighting in telecommunications stocks, especially the major long-distance
carriers, while reducing its electric and natural gas holdings.

o Looking ahead, moderate U.S. economic growth should bode well for interest
rate stability, but earnings growth among utilities is slowing as they
attempt to become more competitive.

o In this environment, we plan to focus on companies that already have a
competitive edge. We believe that these companies will be more likely to
sustain earnings growth and increase their dividends.

Utilities

Total Returns:AS OF 12/31/96
6 Months 3.86%*
1 Year 4.82%

Net Assets:$145.1 million
(AS OF 12/31/96)

Inception Date: 3/1/93

Ticker Symbol: BULIX

* Not annualized.

Many of the investment terms in this report are defined in the Glossary on
page 21.

Annual Report Report Highlights 1

OUR MESSAGE TO YOU

[photo of James E. Stowers III and James M. Benham]

1996 was an eventful year, both for utilities stocks and for our company.
Although the U.S. stock market in general gained more than 20% during the year,
utilities stocks suffered from rising interest rates and the effects of
deregulation. In the following pages, our investment management team provides
further details about the utilities market and how your fund was managed during
the year.

We also changed the name of our company. On January 1, 1997, we began serving
you under the name American Century Investments, which reflects our expanded
identity and the independent thinking common to Twentieth Century and Benham.
American Century's fund family is divided into three groups--the Benham Group,
the American Century Group and the Twentieth Century Group. The Utilities fund
has moved into the American Century Group because the fund's role as a specialty
"diversifier" investment matches key attributes of that group.

These are examples of how we continue to work to provide information and
services that are useful and convenient to investors in our funds. Thank you for
investing with us.

Sincerely,

/s/James E. Stowers III
James E. Stowers III
President and Chief Executive Officer
American Century Companies

/s/James M. Benham
James M. Benham
Vice Chairman
American Century Companies

2 Our Message to You American Century Investments

PERIOD OVERVIEW

While the broad U.S. stock market posted strong returns in 1996, utilities
stocks produced modest gains. As the accompanying graph shows, the New York
Stock Exchange Utilities Index returned 7.20% for the year, well behind the
22.93% return of the S&P 500.

Rising interest rates were the main reason for the lagging performance of
utilities stocks, especially during the first half of the year. Because of their
historically consistent and high dividend yields, utilities stocks have shared
many characteristics with bonds, including a sensitivity to interest rate
changes. When rates surged in response to strong economic growth early in the
year, the prices of both bonds and utilities stocks declined. Utilities stocks
were virtually flat throughout the summer until a bond market rally in October
and November sparked a rebound in utilities stock prices. The NYSE Utilities
Index produced a 7.52% return during the last three months of the year.

Utilities stocks were also hampered by the effects of deregulation and
increased competition. The Federal Telecommunications Act, passed by Congress
and signed into law in February 1996, created more opportunities for
telecommunications companies to expand their businesses, but it also exposed
their existing operations to greater competition. As deregulation gradually
takes hold among electric utilities, companies are rebuilding infrastructure to
meet new competitive demands. The end result of this additional competition is
reduced profit margins--historically, the earnings growth rate of utilities
stocks has been steady and strong, but recently it has slowed to levels below
that of the broader stock market.

The top performers among utilities stocks were natural gas companies, which
returned 33% as a group in 1996. Strong consumer demand resulting from unusually
cold weather and the increasing reputation of natural gas as a "clean fuel" led
to rising gas prices. Telecommunications companies maintained strong earnings
growth, largely because of the higher profit margins of service enhancements,
such as call waiting and caller ID, as well as second phone lines for Internet
access.

The utilities industry experienced a great deal of merger activity in 1996.
Although there were several mergers among the "Baby Bells" (Bell Atlantic/ NYNEX
in the Northeast; SBC/Pacific Bell in the Southwest), one of the most
significant mergers occurred between WorldCom and MFS Communications. This new
telecommunications giant will be able to offer a combination of local,
long-distance, and Internet access well before the Baby Bells and the major
long-distance carriers.

Another trend was the proliferation of mergers between natural gas companies
and electric utilities. The combined companies will now be able to meet all of
their customers' power needs. In addition, the natural gas industry has already
been through deregulation (in 1992), so the merged electric utilities should
benefit from the experience of their new partners.

[line graph - data below]

S&P 500 vs. NYSE UTILITIES (Growth of $1.00)

S&P 500 NYSE Utilites
12/31/95 $1 $1
1/31/96 $1.03401 $1.01107
2/29/96 $1.04362 $0.99035
3/29/96 $1.05366 $0.98133
4/30/96 $1.0692 $0.99595
5/31/96 $1.09678 $1.00144
6/28/96 $1.10096 $1.02796
7/31/96 $1.05231 $0.97586
8/30/96 $1.07451 $0.97793
9/30/96 $1.13499 $0.99704
10/31/96 $1.1663 $1.03292
11/29/96 $1.25445 $1.07597
12/31/96 $1.2296 $1.072

S&P 500 22.93%
NYSE Utilities Index 7.20%

Source: Bloomberg Financial Markets

Annual Report Period Overview 3

PERFORMANCE & PORTFOLIO INFORMATION
<TABLE>

6 MONTHS(1) 1 YEAR 3 YEARS LIFE OF FUND(2)

<S> <C> <C> <C> <C>
AVERAGE ANNUAL RETURNS (as of December 31, 1996)
Utilities 3.86% 4.82% 8.57% 8.43%
NYSE Utilities Index 4.29% 7.20% 9.15% 8.78%
Average Utility Fund(3) 6.07% 9.88% 8.23% 8.34%(4)
Fund's Ranking Among Utility Funds(3) -- 75 out of 90 22 out of 58 19 out of 37

(1) Not annualized.
(2) Inception date was March 1, 1993.
(3) According to Lipper Analytical Services.
(4) Data shown is for the period from 3/4/93 (the date nearest the fund's inception for which data are available) to 12/31/96.
</TABLE>

See pages 20-21 for more information about returns, the comparative index and
Lipper fund rankings.

[line graph - data below]

GROWTH OF $10,000 OVER THE LIFE OF THE FUND

Value on 12/31/96

S&P 500
$18,575

NYSE Utilities
$13,805

Utilities
$13,641

Utilities S&P 500 NYSE Utilities

2/28/93 $10,000 $10,000 $10,000
3/31/93 $10,223 $10,287 $10,258
4/30/93 $10,126 $10,026 $10,060
5/31/93 $10,161 $10,253 $10,069
6/30/93 $10,590 $10,335 $10,455
7/31/93 $10,787 $10,281 $10,645
8/31/93 $11,249 $10,634 $11,112
9/30/93 $11,264 $10,601 $11,078
10/31/93 $11,187 $10,807 $11,073
11/30/93 $10,596 $10,667 $10,493
12/31/93 $10,659 $10,847 $10,614
1/31/94 $10,706 $11,199 $10,680
2/28/94 $10,167 $10,863 $10,107
3/31/94 $9,732 $10,440 $9,699
4/30/94 $9,979 $10,560 $9,984
5/31/94 $9,804 $10,691 $9,710
6/30/94 $9,639 $10,484 $9,562
7/31/94 $9,995 $10,814 $9,946
8/31/94 $10,064 $11,221 $10,038
9/30/94 $9,801 $10,997 $9,812
10/31/94 $9,838 $11,227 $9,818
11/30/94 $9,681 $10,783 $9,640
12/31/94 $9,590 $10,996 $9,618
1/31/95 $10,151 $11,263 $10,133
2/28/95 $10,211 $11,669 $10,117
3/31/95 $10,161 $12,064 $10,071
4/30/95 $10,420 $12,401 $10,378
5/31/95 $10,790 $12,852 $10,696
6/30/95 $10,862 $13,212 $10,795
7/31/95 $11,068 $13,632 $11,037
8/31/95 $11,274 $13,628 $11,272
9/30/95 $11,897 $14,258 $11,822
10/31/95 $12,127 $14,187 $12,004
11/30/95 $12,358 $14,770 $12,223
12/31/95 $13,013 $15,114 $12,877
1/31/96 $13,212 $15,607 $13,135
2/29/96 $12,909 $15,716 $12,753
3/31/96 $12,698 $15,925 $12,637
4/30/96 $12,739 $16,139 $12,825
5/31/96 $12,688 $16,508 $12,896
6/30/96 $13,133 $16,637 $13,237
7/31/96 $12,422 $15,877 $12,566
8/31/96 $12,393 $16,175 $12,594
9/30/96 $12,505 $17,148 $12,839
10/31/96 $12,956 $17,597 $13,303
11/30/96 $13,408 $18,887 $13,856
12/31/96 $13,641 $18,575 $13,805

PORTFOLIO AT A GLANCE
12/31/96 12/31/95
Number of Companies 91 90
Dividend Yield 4.10% 4.56%
Price/Earnings Ratio 15.95 15.50
Portfolio Turnover 93% 68%
Expense Ratio 0.71% 0.75%

4 Performance & Portfolio Information American Century Investments

MANAGEMENT Q&A

An interview with Steve Colton, vice president and senior portfolio manager
of American Century Utilities.

How did the fund perform in 1996?

The fund posted a total return of 4.82%, compared with the 7.20% return of
the New York Stock Exchange Utilities Index and the 9.88% average return of the
90 "Utility Funds" tracked by Lipper Analytical Services. (See the average
annual returns table on the previous page for other fund performance
comparisons.)

After being near the top of its peer group in 1995, the fund underperformed the
average utilities fund in 1996. Why?

The fund is managed to provide a pure play on utilities stocks, and this
gives it a more narrow focus than most of the funds in its peer group. With the
exception of a small cash position (typically 2% or less of the fund's
portfolio), the fund is composed entirely of the stocks of companies that
provide utility services. According to Morningstar, the average utilities fund
has more than 15% in financial, energy, technology and emerging-markets stocks.

The fund's narrow focus, emphasizing telecommunications companies and
electric utilities, made it one of the top-performing utility funds in 1995, but
it proved to be a drag on fund performance in 1996. In contrast, the strong 1996
performance of financial, energy and technology stocks, as well as the surge in
emerging-markets utilities, enhanced the peer group's returns.

The fund's performance also fell short of the NYSE Utilities Index. Why?

The fund's performance diverged from the index's in mid-1996, when some
changes were made to the index's composition. Several stocks that are
tangentially related to the utility services industry were

[bar graph data]

UTILITIES FISCAL YEAR-BY-YEAR RETURNS (Periods ended December 31)

Utilities NYSE Utilities Index
'93* 6.6% 6.14%
'94 -10.03% -9.39%
'95 35.70% 33.89%
'96 4.82% 7.20%

* Return from the fund's 3/1/93 inception date to 12/31/93.

Annual Report Management Q&A 5

MANAGEMENT Q&A

added to the index, including technology, equipment and manufacturing stocks.
The index's superior return stemmed directly from these non-utility holdings.

Although the NYSE Utilities Index remains the most widely quoted measurement
of utilities stock performance, its recent inclusion of companies that do not
provide utility services to the public has made it a less suitable benchmark for
the fund. As a result, we created our own benchmark index for the fund in
October.

Can you provide more details about this benchmark index?

Sure. Starting from a universe of 1,500 stocks, we identified companies that
earn at least half of their revenues from providing utility services. The
resulting 182 stocks make up our internal benchmark, which consists of 50%
telecommunications stocks, 33% electric utilities, 10% natural gas companies and
7% other utilities stocks, such as water and communication services companies.
The benchmark is weighted by market capitalization and updated monthly.

How did the fund perform compared to its new benchmark?

We've only been using our benchmark for a few months, so we don't have return
information for the whole year. However, in the fourth quarter of 1996, the
fund's return of 8.79% closely tracked the 8.95% return of its new benchmark. By
comparison, the NYSE Utilities Index returned 7.52%.

Has the shift to a new benchmark led to any changes in the fund's composition?

Yes. We brought the fund's portfolio more in line with its new benchmark by
expanding the fund's communications stocks and reducing its holdings of electric
and natural gas stocks (see the bar chart on the next page). One result of this
change was an increase in the fund's holdings of the major long-distance phone
carriers--AT&T, MCI and Sprint. While this reflects the benchmark's weightings,
we also believe these companies are attractively valued. We think that MCI will
benefit from its recent merger with British Telecommunications, while AT&T has
spun off several of its side businesses to concentrate on its core business of
telecommunications services.

The fund is permitted to hold a small portion of its portfolio in bonds, but you
avoided bonds in 1996. Why?

Bond yields weren't attractive enough, in our opinion, to justify reducing
the fund's exposure to utilities stocks. We devote a small portion of the fund's
portfolio to bonds only when they offer extra value relative to stocks,
typically through significantly higher yields. Even though bond yields rose in
1996, bonds didn't offer enough extra yield to make the investment worthwhile.
This turned out to be a favorable decision--the 10-year Treasury bond returned
just 0.38% in 1996.

TOP TEN HOLDINGS % of fund investments
As of As of
12/31/96 6/30/96
Ameritech Corp. 4.9% 4.4%
AT&T Corp. 4.9% 1.0%
SBC Communications Inc. 4.8% 4.9%
BellSouth Corp. 4.8% 5.0%
Bell Atlantic Corp. 4.8% 4.8%
GTE Corp. 4.2% 4.4%
Sprint Corp. 3.0% 2.8%
NYNEX Corp. 3.0% 3.3%
MCI Communications Corp. 2.4% --
Southern Co. 2.4% 1.9%

6 Management Q&A American Century Investments

MANAGEMENT Q&A

Looking forward, what's your outlook for utilities stocks in 1997?

The performance of utilities stocks is still largely dependent on long-term
interest rates. We believe that current moderate U.S. economic conditions,
combined with low levels of inflation, should bode well for interest rate
stability in 1997.

The lagging performance of utilities stocks over the past year may also be a
positive factor because they now offer better value compared to the broader
stock market. One way to measure relative value is to look at price/earnings
(P/E) ratios, which show how much investors are paying for a unit of earnings.
As of December 31, 1996, the P/E ratio of the S&P 500--a broad index of U.S.
stocks--was 20.7, compared to the fund's P/E ratio of 16.0. This suggests that,
per unit of earnings, utilities stocks are cheaper than the stocks that make up
the S&P 500.

Unfortunately, earnings growth in the utilities sector is slowing, especially
among electric utilities as a result of advancing deregulation. Although merger
activity has provided access to new customers and enhanced the competitiveness
of some utility companies, many others are plowing profits back into the
business to build infrastructure and prepare for a more competitive marketplace,
and this is restricting their ability to increase their dividend payout rate.
Increased competition may also lead to price wars, which would likely reduce
profit margins.

Within this environment, what are your plans for the fund over the next six
months?

We'll be focusing on companies that already have a competitive edge. We
believe that these companies will be in a better position to sustain earnings
growth and increase dividends, and they should have an advantage over companies
that are still developing the capability to meet competitive demands. In
particular, we like diversified utility companies, which should have a
competitive advantage because they have several different sources of cash flow.

A good example of this is Utilicorp United, one of the fund's larger
holdings. Over the past 12 years, this diversified utility company acquired 10
other utilities, and it now offers both natural gas and electricity to a
national customer base. Utilicorp generates revenue from two different utility
services, and it has already experienced deregulation through partnerships with
foreign utilities. These are the kinds of competitive advantages that we're
looking for.

Has the gradual deregulation of electric utilities affected your investment
strategy for these companies?

Not really. We still look for the same qualities--good relative value, solid
earnings growth and free cash flows. These characteristics are consistent with
our strategy to seek out companies with a competitive edge. Even in a rapidly
changing industry, there will always be some companies that have a leg up on the
competition, and those are the companies we intend to invest in.

[bar graph data]

FUND INDUSTRY BREAKDOWN

12/31/96 6/30/96
Communications Services 50% 44%
Electric 36% 40%
Natural Gas 10% 12%
Other 4% 4%

Annual Report Management Q&A 7

SCHEDULE OF INVESTMENTS

DECEMBER 31, 1996

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

COMMON STOCKS

COMMUNICATIONS EQUIPMENT--1.7%
75,000 US West Mediavision Group $ 2,418,750
------------
COMMUNICATIONS SERVICES--49.9%
168,100 AT&T Corp. 7,018,175
70,900 Airtouch Communications, Inc.(1)1,790,225
47,600 Aliant Communications, Inc. 803,250
33,000 ALLTEL Corp. 1,035,375
116,600 Ameritech Corp. 7,068,875
105,300 Bell Atlantic Corp. 6,818,175
170,500 BellSouth Corp. 6,883,937
17,100 Cable & Wireless plc ADR 421,088
65,100 Century Telephone
Enterprises, Inc. 2,009,962
13,000 Cincinnati Bell Inc. 801,125
87,100 Frontier Corp. 1,970,637
133,000 GTE Corp. 6,051,500
6,000 Hong Kong Telecommunications
Ltd. ADR 97,500
10,000 LCI International, Inc.(1) 215,000
107,200 MCI Communications Corp. 3,504,100
32,000 MFS Communications Co., Inc.(1) 1,740,000
27,600 Nextel Communications, Inc.(1) 360,525
89,100 NYNEX Corp. 4,287,937
40,500 Pacific Telesis Group 1,488,375
133,700 SBC Communications Inc. 6,918,975
108,000 Sprint Corp. 4,306,500
23,600 Tele Danmark A/S ADR 643,100
77,800 Telefonos de Mexico, S.A. ADR 2,567,400
83,700 U.S. Long Distance Corp.(1) 680,062
74,100 Worldcom, Inc.(1) 1,931,231
------------
71,413,029
------------
ENERGY (PRODUCTION & MARKETING)--1.2%
40,400 Enron Corp. 1,742,250
------------

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

NATURAL GAS--9.8%
2,200 Columbia Gas System, Inc. (The)$ 139,975
20,200 Connecticut Energy Corp. 429,250
27,600 Connecticut Natural Gas Corp. 703,800
27,400 Consolidated Natural Gas Co. 1,513,850
22,000 Eastern Enterprises 778,250
23,300 Energen Corp. 704,825
18,900 Indiana Energy Inc. 460,688
11,700 National Fuel Gas Co. 482,625
32,900 New Jersey Resources Corp. 962,325
55,400 Pacific Enterprises 1,682,775
29,300 PanEnergy Corp. 1,318,500
12,500 People's Energy Corp. 423,437
11,200 Providence Energy Corp. 196,000
4,500 Sonat Inc. 231,750
80,700 TransCanada Pipelines Ltd. 1,412,250
7,100 UGI Corp. 158,863
51,100 Westcoast Energy Inc. 855,925
20,800 Wicor, Inc. 746,200
20,100 Williams Companies, Inc. (The) 753,750
------------
13,955,038
------------
UTILITIES (ELECTRIC)--36.1%
9,400 American Electric Power Co., Inc. 386,575
20,900 Baltimore Gas & Electric Co. 559,075
19,300 Black Hills Corp. 542,813
6,900 Boston Edison Co. 185,437
36,900 CMS Energy Corp. 1,240,763
38,500 Carolina Power & Light 1,405,250
33,600 Central & South West Corp. 861,000
6,500 Central Hudson Gas & Electric
Corp. 203,937
50,499 Citizens Utilities Co. 549,177
52,300 Commonwealth Energy System 1,229,050
93,200 Consolidated Edison Co. of
New York, Inc. 2,726,100
26,300 Detroit Edison Company 851,463

See Notes to Financial Statements

8 Schedule of Investments American Century Investments

SCHEDULE OF INVESTMENTS

DECEMBER 31, 1996

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

37,500 Duke Power Co. $ 1,734,375
20,600 DQE, Inc. 597,400
149,100 Enova Corporation 3,392,025
67,900 Entergy Corp. 1,884,225
62,800 FPL Group, Inc. 2,888,800
38,900 Florida Progress Corp. 1,254,525
39,300 General Public Utilities Corp. 1,321,462
5,800 Green Mountain Power Corp. 138,475
13,700 Hawaiian Electric Industries,
Inc. 494,913
56,400 Houston Industries Inc. 1,276,050
8,100 Illinova Corp. 222,750
35,300 Korea Electric Power Corp. ADR 723,650
10,800 LG&E Energy Corp. 264,600
12,600 MDU Resources Group, Inc. 289,800
103,900 MidAmerican Energy Co. 1,649,413
23,300 Minnesota Power & Light Co. 640,750
47,900 Montana Power Co. 1,023,862
8,000 New England Electric 279,000
62,300 NIPSCO Industries, Inc. 2,468,637
18,300 Orange & Rockland Utilities, Inc. 656,513
17,900 Pacific Gas & Electric Co. 375,900
93,100 Pennsylvania Power & Light Co. 2,141,300
85,100 Public Service Enterprise Group
Inc. 2,318,975
21,600 Rochester Gas & Electric Corp. 413,100
400 Scana Corp. 10,700
153,300 Southern Co. 3,468,413
13,200 St. Joseph Light & Power Co. 202,950
42,800 TECO Energy, Inc. 1,032,550
73,900 Texas Utilities Co. 3,011,425
41,300 Unicom Corp. 1,120,263
48,800 United Illuminating Co. 1,531,100
53,500 Utilicorp United Inc. 1,444,500
36,000 Washington Water Power Co. 670,500
------------
51,683,541
------------
TOTAL COMMON STOCKS--98.7% 141,212,608
(Cost $123,801,683) ------------

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

TEMPORARY CASH INVESTMENTS--1.3%
Repurchase Agreement, Morgan Stanley & Co. Inc.,
(U.S. Treasury obligations), in a joint trading
account at 6.25%, dated 12-31-96,
due 1-2-97 (Delivery value
$1,900,660) $ 1,900,000
(Cost $1,900,000) ------------

TOTAL INVESTMENT SECURITIES--100.0% $143,112,608
(Cost $125,701,683) ============

Notes to Schedule of Investments
ADR = American Depositary Receipt
(1) Non-income producing

See Notes to Financial Statements

Annual Report Schedule of Investments 9

<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES

ASSETS
<S> <C>
Investment securities, at value (identified cost of $125,701,683) (Note 3) ................. $143,112,608
Cash ....................................................................................... 3,843
Receivable for investments sold ............................................................ 2,054,394
Dividends and interest receivable .......................................................... 520,535
Prepaid expenses and other assets .......................................................... 13,527
-----------
145,704,907
-----------
LIABILITIES
Disbursements in excess of demand deposit cash ............................................. 357,817
Payable for investments purchased .......................................................... 31,291
Payable for capital shares redeemed ........................................................ 64,343
Dividends payable .......................................................................... 26,895
Payable to affiliates (Note 2) ............................................................. 87,049
Accrued expenses and other liabilities ..................................................... 3,849
-----------
571,244
-----------
Net Assets Applicable to Outstanding Shares ................................................ $145,133,663
===========

CAPITAL SHARES, $10.00 par value
Authorized ................................................................................. 2,000,000,000
=============
Outstanding ................................................................................ 12,613,458
===========
Net Asset Value Per Share .................................................................. $11.51
===========

NET ASSETS CONSIST OF:
Capital (par value and paid-in surplus) .................................................... $128,575,054
Undistributed net investment income ........................................................ 39,218
Accumulated undistributed net realized (loss) from investment transactions ................. (891,534)
Net unrealized appreciation on investments (Note 3) ........................................ 17,410,925
-----------
$145,133,663
===========
</TABLE>

See Notes to Financial Statements

10 Statement of Assets and Liabilities American Century Investments

STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 1996

INVESTMENT INCOME
Income:
<S> <C>
Dividends (net of foreign taxes withheld of $64,942) .................................... $7,634,378
Interest ................................................................................ 169,164
----------
7,803,542
----------
Expenses (Note 2):
Investment advisory fees ................................................................ 504,534
Transfer agency fees .................................................................... 370,118
Administrative fees ..................................................................... 160,940
Custodian fees .......................................................................... 76,254
Printing and postage .................................................................... 25,717
Registration and filing fees ............................................................ 16,032
Auditing and legal fees ................................................................. 14,303
Directors' fees and expenses ............................................................ 10,911
Other operating expenses ................................................................ 24,668
----------
Total expenses ........................................................................ 1,203,477
Amount recouped ......................................................................... 21,478
Custodian earnings credits (Note 4) ..................................................... (5,726)
----------
Net expenses .......................................................................... 1,219,229
----------
Net investment income ................................................................... 6,584,313
----------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 3)
Net realized gain ....................................................................... 10,723,315
Change in net unrealized appreciation ................................................... (12,484,403)
----------
Net realized and unrealized
(loss) on investments ................................................................... (1,761,088)
----------
Net Increase in Net Assets
Resulting from Operations ............................................................... $4,823,225
==========
</TABLE>

See Notes to Financial Statements

Annual Report Statement of Operations 11

STATEMENTS OF CHANGES IN NET ASSETS

YEARS ENDED DECEMBER 31, 1996
AND DECEMBER 31, 1995

Increase (Decrease) in Net Assets 1996 1995
OPERATIONS
<S> <C> <C>
Net investment income ......................................................... $ 6,584,313 $ 7,656,872
Net realized gain (loss) on investment transactions ........................... 10,723,315 (1,057,980)
Change in net unrealized appreciation (depreciation) on investments ........... (12,484,403) 48,067,735
---------- ----------
Net increase in net assets resulting from operations .......................... 4,823,225 54,666,627
---------- ----------

DISTRIBUTIONS TO SHAREHOLDERS
From net investment income .................................................... (6,770,031) (7,543,125)
---------- ----------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ..................................................... 89,292,404 129,707,694
Proceeds from reinvestment of distributions ................................... 5,798,940 6,339,489
Payments for shares redeemed .................................................. (166,805,336) (116,945,889)
---------- ----------
Net increase (decrease) in net assets from capital share transactions ......... (71,713,992) 19,101,294
---------- ----------
Net increase (decrease) in net assets ......................................... (73,660,798) 66,224,796

NET ASSETS
Beginning of year ............................................................. 218,794,461 152,569,665
---------- ----------
End of year ................................................................... $145,133,663 $218,794,461
=========== ===========

Undistributed net investment income ........................................... $39,218 $224,936
=========== ===========

TRANSACTIONS IN SHARES OF THE FUND
Sold .......................................................................... 7,945,349 13,052,071
Issued in reinvestment of distributions ....................................... 521,583 634,034
Redeemed ...................................................................... (14,983,850) (11,911,081)
---------- ----------
Net increase (decrease) ....................................................... (6,516,918) 1,775,024
=========== ===========
</TABLE>

See Notes to Financial Statements

12 Statements of Changes in Net Assets American Century Investments

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1996

1. Organization and Summary of Significant Accounting Policies

Repurchase Agreements--The Fund may enter into repurchase agreements with
institutions that the Fund's investment advisor, Benham Management Corporation
(BMC), has determined are creditworthy pursuant to criteria adopted by the Board
of Directors. Each repurchase agreement is recorded at cost. The Fund requires
that the securities purchased in a repurchase transaction be transferred to the
custodian in a manner sufficient to enable the Fund to obtain those securities
in the event of a default under the repurchase agreement. BMC monitors, on a
daily basis, the value of the securities transferred to ensure that the value,
including accrued interest, of the securities under each repurchase agreement is
greater than the amount 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 BMC and American Century
Investment Management, Inc., 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 and Agency obligations.

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

Distributions to Shareholders--Distributions to shareholders are recorded on
the ex-dividend date. Distributions from net investment income for the Fund are
declared daily and distributed monthly. Distributions from net realized gains in
excess of capital loss carryovers are declared and paid annually. At December
31, 1996, the Fund had an accumulated net realized capital loss carryover of
$194,348 (expiring 2003), which may be used to offset future taxable capital
gains.

Organization Costs--Costs incurred by the Fund in connection with the
organization, initial registration, and public offering of shares are being
amortized on a straight basis over a five-year period ending February, 1998.

Annual Report Notes to Financial Statements 13

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1996

- --------------------------------------------------------------------------------
2. Transactions with Related Parties

The Corporation has entered into an Investment Advisory Agreement with BMC
that provides the Fund with investment advisory services in exchange for an
investment advisory fee. ACSC pays all compensation of the Corporation's
officers and directors who are officers or directors of ACC or any of its
subsidiaries. In addition, promotion and distribution expenses are paid by BMC.
The investment advisory fee is paid monthly by each Fund based on its pro rata
share of the dollar amount derived from applying the Corporation's average daily
closing net assets to the following annualized investment advisory fee schedule.

The Corporation has entered into an Administrative Services and Transfer
Agency Agreement with ACSC. The Agreement was formerly with Benham Financial
Services, Inc. Under the Agreement, ACSC provides administrative service and
transfer agency functions necessary to operate the Fund. Fees for these services
are based on transaction volume, number of accounts and average daily closing
net assets of all funds advised by BMC.

The Corporation has an additional agreement with BMC pursuant to which BMC
established a contractual expense guarantee that limits Fund expenses (excluding
expenses such as brokerage commissions, taxes, interest, custodian earnings
credits and extraordinary expenses) to .75% of the Fund's average daily closing
net assets. The agreement provides further that BMC may recover amounts
(representing expenses in excess of the Fund's expense guarantee rate) absorbed
during the preceding 11 months, if, and to the extent that, for any given month,
the Fund's expenses are less than the expense guarantee rate in effect at that
time. The expense guarantee rate is renewed annually in June.

The payable to affiliates as of December 31, 1996, based on the above
agreements, was as follows:

Investment Advisor ........................ $35,827
Transfer Agent ............................ 25,806
Administrative Services .............. 25,416
--------
$87,049
========

The Corporation has a Distribution Agreement with ACIS, which is responsible
for promoting sales of and distributing the Fund's shares. This Agreement was
formerly with Benham Distributors, Inc.

- --------------------------------------------------------------------------------
3. Investment Transactions

The aggregate cost of investment securities purchased (excluding short-term
investments) for the year ended December 31, 1996, totaled $149,711,565 for
common stocks and $4,970,447 for U.S. Treasury and Agency obligations. Proceeds
from investment securities sold (excluding short-term investments) totaled
$210,316,912 for common stocks and $13,049,141 for U.S. Treasury and Agency
obligations. On December 31, 1996, accumulated net unrealized appreciation on
investments, based on the aggregate cost of investments of $126,398,795 for
federal income tax purposes, was $16,713,813 consisting of unrealized
appreciation of $19,562,127 and unrealized depreciation of $2,848,314.

14 Notes to Financial Statements American Century Investments

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1996

- --------------------------------------------------------------------------------
4. Expense Offset Arrangements

The Fund's Statement of Operations reflects custodian earnings credits. This
amount is used to offset the custodian fees payable by the Fund to the custodian
bank. The credits are earned when the Fund maintains a balance of uninvested
cash at the custodian bank. Beginning with the year ended December 31, 1995, the
ratios of operating expenses to average net assets shown in the Financial
Highlights are calculated as if these credits had not been earned.

- --------------------------------------------------------------------------------
5. Subsequent Events

The following name changes became effective January 1, 1997:
<TABLE>

NEW NAMES FORMER NAMES
<S> <C> <C>
Fund's Issuer: American Century Quantitative Equity Funds(1) Benham Equity Funds
Fund: American Century Utilities Fund(1) Benham Utilities Income Fund
Parent Company: American Century Companies, Inc. Twentieth Century Companies, Inc.
Distributor: American Century Investment Services, Inc. Twentieth Century Securities, Inc.
Transfer Agent: American Century Services Corporation Twentieth Century Services, Inc.

(1) New names are subject to shareholder approval.
</TABLE>

Annual Report Notes to Financial Statements 15

FINANCIAL HIGHLIGHTS

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

1996 1995 1994 1993(1)

PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C>
Beginning of Period ......................................... $11.44 $8.79 $10.24 $10.00
-------- -------- -------- --------
Income from Investment Operations
Net Investment Income ..................................... .45 .42 .44 .36
Net Realized and Unrealized Gain
(Loss) on Investment Transactions ......................... .08 2.65 (1.45) .30
-------- -------- -------- --------
Total From
Investment Operations ..................................... .53 3.07 (1.01) .66
-------- -------- -------- --------
Distributions
From Net Investment Income ................................ (.46) (.42) (.44) (.36)
From Net Realized Gains on Investment Transactions ........ -- -- -- (.06)
-------- -------- -------- --------
Total Distributions ....................................... (.46) (.42) (.44) (.42)
-------- -------- -------- --------
Net Asset Value, End of Period .............................. $11.51 $11.44 $8.79 $10.24
======== ======== ======== ========
Total Return(2) ........................................... 4.82% 35.70% (10.03%) 6.60%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to
Average Net Assets(3) ..................................... .71% .75% .75% .50%(4)
Ratio of Net Investment Income
to Average Net Assets ..................................... 3.88% 4.31% 4.67% 4.23%(4)
Portfolio Turnover Rate ................................... 93% 68% 61% 39%
Average Commission Paid per Investment Security Traded .... $.038 $.030 --(5) --(5)
Net Assets, End
of Period (in thousands) .................................. $145,134 $218,794 $152,570 $194,314

(1) March 1, 1993 (Inception) through December 31, 1993.
(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) The ratios for the periods subsequent to December 31, 1994, include expenses paid through expense offset arrangements.
(4) Annualized.
(5) Disclosure of average commission paid per investment security traded was not required prior to the year ended December 31,
1995.

</TABLE>
See Notes to Financial Statements

16 Financial Highlights American Century Investments

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
American Century Quantitative Equity Funds:

We have audited the accompanying statement of assets and liabilities,
including the schedule of investment securities, of American Century Utilities
Fund (one of the five funds comprising American Century Quantitative Equity
Funds) (the Fund) as of December 31, 1996, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period then ended, and the financial
highlights for each of the periods presented. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
American Century Utilities Fund as of December 31, 1996, the results of its
operations, the changes in its net assets and its financial highlights for the
periods indicated above, in conformity with generally accepted accounting
principles.

/s/KPMG Peat Marwick LLP
Kansas City, Missouri
February 7, 1997

Annual Report Independent Auditors' Report 17

IMPORTANT NOTICE FOR
ALL IRA AND 403(b) SHAREHOLDERS

18 Important Notice American Century Investments

NOTES

Annual Report Notes 19

BACKGROUND INFORMATION

Investment Philosophy & Policies

The American Century group offers seven equity funds, including three
"specialty" equity funds* that concentrate their holdings in specific industries
or sectors of the stock market. These funds typically respond differently than
general equity funds to changing market or economic conditions. The funds are
managed to provide a broad representation of the respective industries.

Utilities seeks current income and capital growth over time by investing
primarily in the stocks of companies engaged in the utilities industry. These
include companies that derive more than half of their revenues from the
ownership or operation of facilities that produce electricity, natural gas,
telecommunications services, cable television, water or sanitary services.

To enhance fund income and increase diversification, the fund may invest up
to 25% of its assets in fixed-income securities. These may include U.S.
government or agency bonds, utility bonds, or bonds issued by non-utility
corporations.

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 an index created by Standard & Poor's Corporation that is
considered to be a broad measure of U.S. stock market performance. It is
composed primarily of large-capitalization stocks.

The New York Stock Exchange (NYSE) Utilities Index is composed of 265
utilities stocks traded on the NYSE.

Lipper Rankings

Lipper Analytical Services, Inc. is an independent mutual fund ranking
service that groups funds according to their investment objective. Rankings are
based on average annual returns for each fund in a given category for the
periods indicated. Rankings are not included for periods less than one year. The
Utility Funds category includes funds that invest at least 65% of their
portfolios in utility stocks.

PORTFOLIO MANAGEMENT TEAM

Vice President and
Senior Portfolio Manager Steve Colton

Portfolio Manager Dong Zhang

Senior Research Analyst Matti von Turk

* Investing in these funds involves special risks resulting from their
concentrated investment objectives. An investment in any one of these funds does
not constitute a balanced investment plan.

20 Background Information American Century Investments

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.

Portfolio Statistics

Number of Companies--the number of different companies held by a fund on a
given date.

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/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

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.

Annual Report Glossary 21

[american century logo]
American
Century(sm)

P.O. Box 419200
Kansas City, Missouri
64141-6200

Person-to-Person Assistance:
1-800-345-2021 or 816-531-5575

Automated Information Line:
1-800-345-8765

Telecommunications Device for the Deaf:
1-800-634-4113 or 816-753-1865

Fax: 816-340-7962

Internet: www.americancentury.com

American Century Quantitative Equity Funds

Investment Manager
Benham Management Corporation

American Century Investment Services, Inc.

9702 [recycled logo]
SH-BKT-7798 Recycled