FUND PROFILE
Utilities
INVESTOR CLASS
January 31, 1999
[american century logo(reg.sm)]
American
Century
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This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
AMERICAN CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
UTILITIES
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Utilities seeks current income and long-term growth of capital and
income. The fund invests primarily in equity securities of companies
engaged in the utilities industry.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
Utilities invests primarily in equity securities of companies engaged in
the utilities industry. The fund's investment strategy utilizes
quantitative management techniques in a two-part process that utilizes
computer technology. The first part involves ranking stocks on the basis of
their growth and valuation characteristics. Examples of growth
characteristics are earnings growth rates and changes in analyst earnings
estimates. Examples of valuation characteristics are price to earnings and
price to book ratios.
In the second part of the process, the fund advisor uses a technique
called portfolio optimization. In portfolio optimization, the fund advisor
uses a computer to build a portfolio of stocks that it believes will
provide the optimal balance between risk relative to the fund's benchmark,
which is described below, and expected return of the fund, as measured in
the stock ranking completed in the first step.
Under normal market conditions, Utilities invests at least 75% of its
total assets in stocks of companies engaged in the utilities industry.
Within this 75% category, the fund advisor will not buy shares of a company
unless 50% or more of the company's revenues or net profits come from the
ownership or operation of facilities used to provide electricity, natural
gas, telecommunications services, cable television, water or sanitary
services. Utilities may invest up to 25% of its total assets in
fixed-income securities.
The fund's benchmark is a market capitalization-weighted index of
companies engaged in the utilities industry as defined above and whose
shares are traded in the United States. It is an internally developed index
maintained by the fund advisor. The index is changed periodically to
reflect corporate actions such as mergers and acquisitions. It also may be
changed to reflect underlying trends in the utilities industry over time.
Changes in the index may induce changes to the fund's holdings. As of the
end of September 1998, the benchmark was comprised of 164 companies with an
aggregate market capitalization of almost $1 trillion.
Additional information about Utilities' investments is available in its
annual and semiannual reports. In these reports you will find a discussion
of the market conditions and investment strategies that significantly
affected the fund's performance during the most recent six-month period.
You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of Utilities' shares depends on the value of the stocks and
other securities it owns. The value of the individual securities
Utilities owns will go up and down depending on the performance of the
companies that issued them, general market and economic conditions, and
investor confidence.
* As with all funds, at any given time, the value of your shares of
Utilities may be worth more or less than the price you paid. If you sell
your shares when the value is less than the price you paid, you will
lose money.
* An investment in the fund is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
* Because Utilities concentrates its investments in utilities companies,
it may be subject to greater risks and market fluctuations than a
portfolio representing a broader range of industries. As an example of
these risks, companies in the telecommunications and electric utilities
industries have experienced substantial changes in the amount and type
of regulation at the state and federal level. While creating
opportunities for some companies, it also has increased the uncertainty
for others with respect to future revenues and earnings. This trend may
continue for some time and increased share price volatility may result.
* Although the fund advisor invests the fund's assets primarily in U.S.
stocks, Utilities can invest in securities of foreign companies. Foreign
securities can have certain unique risks, including fluctuations in
currency exchange rates, unstable political and economic structures,
reduced availability of public information and lack of uniform financial
reporting and regulatory practices similar to those that apply to U.S.
issuers.
UTILITIES AMERICAN CENTURY INVESTMENTS
In summary, Utilities is intended for investors who seek current income
and long-term capital growth and income through investments in utilities
companies, and who are willing to accept the risks associated with the
fund's investment strategy.
FUND PERFORMANCE
The following bar chart shows the actual performance of Utilities'
Investor Class shares for each calendar year since the fund's inception on
March 1, 1993. The bar chart indicates the volatility of the fund's
historical returns from year to year. Neither the bar chart nor the
performance information below it is intended to indicate how the fund will
perform in the future.
[bar chart]
FPO
CALENDAR YEAR-BY-YEAR RETURNS
1991 1992 1993 1994 1995 1996 1997
Utilities
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter for the life of the fund if less than 10 years are
provided in the following chart to indicate the fund's historical
short-term volatility. Shareholders should be aware, however, that
Utilities is intended for investors with a long-term investment horizon and
is not managed for short-term results.
[bar chart]
FPO
HIGHEST AND LOWEST QUARTERLY RETURNS
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The S&P 500, an unmanaged
index that reflects no operating costs, is included as a benchmark for
long-term performance comparisons.
1 YEAR LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
Utilities ____% ____%
S&P 500 ____% ____%
For current performance information, including yields, please call us or
access our Web site.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds
or to redeem your shares. The following table describes the fees and
expenses that you may pay if you buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.70%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.01%
Total Annual Fund Operating Expenses 0.71%
(1)Based upon assets at December 1, 1997. The fund has a stepped fee
schedule. As a result, the fund's management fee generally decreases as
fund assets increase.
(2)Other expenses include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses.
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you . . .
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$72 $227 $394 $880
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment
advisory and management services for the fund. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage
FUND PROFILE UTILITIES
its mutual funds. The portfolio managers of the Utilities team are
identified below:
JOHN SCHNIEDWIND, Senior Vice President and Group Leader-Quantitative
Equity, joined American Century in 1982, and has been a member of the team
that manages Utilities since its inception in March 1993. He has an MBA in
Industrial Engineering from Purdue University and an MBA in Finance from
the University of California at Berkeley. He is a Chartered Financial
Analyst.
KURT BORGWARDT, Vice President, Portfolio Manager and Director of
Quantitative Equity Research, joined American Century in 1990 and has
served as the Director of Quantitative Equity Research since then. He
joined the team managing Utilities in May 1997. He has an MBA in Finance
from the University of Chicago. He also is a chartered Financial Analyst.
JOSEPH B. STERLING, Portfolio Manager, joined the team managing
Utilities in May 1997. He joined American Century in 1989 as an Equity
Research Analyst and held that position until being promoted to Associate
Portfolio Manager in December 1995. He has a BA in Political Economy of
Industrial Societies from the University of California at Berkeley.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in Utilities for
shares in nearly 70 other mutual funds offered by American Century.
Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests
require a signature guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Utilities pays distributions of substantially all of its income
quarterly. Distributions from realized capital gains are paid annually,
usually in December. Distributions may be taxable as ordinary income,
capital gains or a combination of the two. Capital gains are taxed at
different rates depending on the length of time the fund held the
securities that were sold. Distributions are reinvested automatically in
additional shares unless you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
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[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE, NOT-FOR-PROFIT, KEOGH, SEP-,
SARSEP-, SIMPLE-IRA AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX 816-340-7962
Funds Distributor, Inc.
SH-BRO-14138 9811
