[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo (reg. sm)]
American
Century
Equity Growth Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
JULY 26, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
EQUITY GROWTH FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Equity Growth seeks capital appreciation by investing in common stocks.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund's investment strategy utilizes quantitative management techniques
in a two-step process that draws heavily on computer technology. In the
first step, the fund managers rank stocks, primarily the 1,500 largest
publicly traded companies in the United States (measured by the value of
their stock), from most attractive to least attractive. This is determined
by using a computer model that combines measures of a stock's value, as well
as measures of its growth potential. To measure value, the fund managers use
ratios of stock price-to-book value and stock price-to-cash flow, among
others. To measure growth, the fund managers use, among others, the rate of
growth of a company's earnings and changes in the earnings estimates for a
company.
In the second step, the fund managers use a technique called portfolio
optimization. In portfolio optimization, the fund managers use a computer
model to build a portfolio of stocks that they believe will provide the
optimal balance between risk and expected return of the portfolio, as
measured in the stock ranking completed in the first step. The goal is to
create a fund that provides better returns than the S&P 500 without taking
on significant additional risk.
The fund may invest in securities other than stocks, such as convertible
securities, foreign securities, short-term instruments and non-leveraged
stock index futures contracts. "Non-leveraged" means that the fund may not
invest in futures contracts where it would be possible to lose more than the
fund invested.
Additional information about Equity Growth's investments is available in its
annual and semiannual reports. In these reports you will find a discussion
of the market conditions and investment strategies that significantly
affected the fund's performance during the most recent fiscal period. You
may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of Equity Growth's shares depends on the value of the stocks and
other securities it owns. The value of the individual securities that the
fund owns will go up and down depending on the performance of the companies
that issued them, general market and economic conditions, and investor
confidence.
* Market performance tends to be cyclical and, in the various cycles,
certain investment styles may fall in and out of favor. If the market is not
favoring the fund's style, the fund's gains may not be as big as, or its
losses may be bigger than, other equity funds using different investment
styles.
* As with all funds, at any given time the value of your shares of Equity
Growth may be worth more or less than the price you paid. If you sell your
shares when the value is less than the price you paid, you will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
* Although the fund managers invest the fund's assets primarily in U.S.
stocks, Equity Growth can invest in securities of foreign companies. Foreign
securities can have certain unique risks, including fluctuations in currency
exchange rates, less stable political and economic structures, reduced
availability of public information, and the lack of uniform financial
reporting and regulatory practices similar to those that apply in the United
States. These factors make investing in foreign securities generally riskier
than investing in U.S. stocks.
In summary, Equity Growth is intended for investors who seek capital
appreciation through an equity fund 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 Equity Growth's
Investor Class shares for each calendar year since the fund's inception on
May 9, 1991. The bar chart indicates the volatility of the fund's historical
returns from year to year. The bar chart and the performance information
below are not intended to indicate how the fund will perform in the future.
Equity Growth American Century Investments
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 25.45%
1997 36.06%
1996 27.34%
1995 34.56%
1994 -0.23%
1993 11.42%
1992 4.13%
(1) As of June 30, 1999, the end of the most recent calendar quarter,
Equity Growth's year-to-date return was 8.11%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
---------------------------------------------------------------------------
Equity Growth 23.10% (4Q 1998) -13.88% (3Q 1998)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The S&P 500 Index, an unmanaged
index that reflects no operating costs, is included as a benchmark for
performance comparisons.
1 YEAR 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1999)
---------------------------------------------------------
Equity Growth 14.61% 26.68% 19.62%
S&P 500 Index 22.75% 27.81% 19.79%
(1) The inception date for Equity Growth is May 9, 1991.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------
Management Fee 0.69%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.69%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel and interest, are expected to
be less than 0.005% for the current fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$70 $220 $383 $856
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. Identified below are the portfolio
managers for the Equity Growth team:
JOHN SCHNIEDWIND, Senior Vice President and Group Leader--Quantitative
Equity, has been a member of the team that manages Equity Growth since its
inception. He joined American Century in 1982 and also supervises other
portfolio management teams. He has degrees from Purdue University and an MBA
in finance from the University of California. He is a Chartered Financial
Analyst.
Equity Growth Fund Profile
JEFFREY R. TYLER, Senior Vice President and Portfolio Manager, has been a
member of the team that manages Equity Growth since June 1997. He joined
American Century as a Portfolio Manager in 1988. He has a bachelor's degree
in business economics from the University of California and an MBA in
finance and economics from Northwestern University. He is a Chartered
Financial Analyst.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return the enclosed application along with an investment
check payable to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts). If your redemption activity causes
the value of your account to fall below this account minimum, your shares
may be redeemed involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in Equity Growth 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?
Equity Growth pays distributions of substantially all of its income
quarterly. Distributions from realized capital gains are paid twice a year,
usually in March and 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo (reg. sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16948 9907 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo (reg. sm)]
American
Century
Income & Growth Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
JULY 26, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
INCOME & GROWTH FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Income & Growth seeks dividend growth, current income and capital
appreciation by investing in common stocks.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund's investment strategy utilizes quantitative management techniques
in a two-step process that draws heavily on computer technology. In the
first step, the fund managers rank stocks, primarily the 1,500 largest
publicly traded companies in the United States (measured by the value of
their stock), from most attractive to least attractive. This is determined
by using a computer model that combines measures of a stock's value as well
as measures of its growth potential. To measure value, the fund managers use
ratios of stock price-to-book value and stock price-to-cash flow, among
others. To measure growth, the fund managers use, among others, the rate of
growth of a company's earnings and changes in the earnings estimates for a
company.
In the second step, the fund managers use a technique called portfolio
optimization. With portfolio optimization, the fund managers use a computer
model to build a portfolio of stocks that they believe will provide the
optimal balance between risk and expected return of the portfolio as
measured in the stock ranking completed in the first step. The goal is to
create a fund that provides better returns than the S&P 500 without taking
on significant additional risk. When building the fund's portfolio, the fund
managers also attempt to create a dividend yield for the fund that will be
greater than that of the S&P 500.
The fund may invest in securities other than stocks, such as convertible
securities, foreign securities, short-term instruments and non-leveraged
stock index futures contracts. "Non-leveraged" means that the fund may not
invest in futures contracts where it would be possible to lose more than the
fund invested.
Additional information about Income & Growth's investments is available in
its annual and semiannual reports. In these reports you will find a
discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of Income & Growth's shares depends on the value of the stocks
and other securities it owns. The value of the individual securities that
the fund owns will go up and down depending on the performance of the
companies that issued them, general market and economic conditions, and
investor confidence.
* Market performance tends to be cyclical and, in the various cycles,
certain investment styles may fall in and out of favor. If the market is not
favoring the fund's style, the fund's gains may not be as big as, or its
losses may be bigger than, other equity funds using different investment
styles.
* As with all funds, at any given time the value of your shares of Income &
Growth may be worth more or less than the price you paid. If you sell your
shares when the value is less than the price you paid, you will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
* Although the fund managers invest the fund's assets primarily in U.S.
stocks, Income & Growth can invest in securities of foreign companies.
Foreign securities can have certain unique risks, including fluctuations in
currency exchange rates, less stable political and economic structures,
reduced availability of public information, and the lack of uniform
financial reporting and regulatory practices similar to those that apply in
the United States. These factors make investing in foreign securities
generally riskier than investing in U.S. stocks.
In summary, Income & Growth is intended for investors who seek dividend
growth, current income and capital appreciation through an equity fund 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 Income & Growth's
Investor Class shares for each calendar year since the fund's inception on
December 17, 1990. The bar chart indicates the volatility of the fund's
historical returns from year to year. The bar chart and performance
information below are not intended to indicate how the fund will perform in
the future.
Income & Growth American Century Investments
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 27.67%
1997 34.52%
1996 24.15%
1995 36.88%
1994 -0.55%
1993 11.31%
1992 7.86%
1991 39.08%
(1) As of June 30, 1999, the end of the most recent calendar quarter,
Income & Growth's year-to-date return was 9.69%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
---------------------------------------------------------------------------
Income & Growth 22.18% (4Q 1998) -11.29% (3Q 1998)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The S&P 500 Index, an unmanaged
index that reflects no operating costs, is included as a benchmark for
performance comparisons.
1 YEAR 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1999)
---------------------------------------------------------
Income & Growth 18.89% 27.08% 21.80%
S&P 500 Index 22.75% 27.81% 21.31%
(1) The inception date for Income & Growth is December 17, 1990.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------
Management Fee 0.69%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.69%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel and interest, are expected to
be less than 0.005% for the current fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$70 $220 $383 $856
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. Identified below are the portfolio
managers for the Income & Growth team:
JOHN SCHNIEDWIND, Senior Vice President and Group Leader--Quantitative
Equity, has been a member of the team that manages Income & Growth since its
inception. Mr. Schniedwind joined American Century in 1982 and also
supervises other portfolio management teams. He has degrees from Purdue
University and an MBA in finance from the University of California. He is a
Chartered Financial Analyst.
Income & Growth Fund Profile
JEFFREY R. TYLER, Senior Vice President and Portfolio Manager, has been a
member of the team that manages Income & Growth since June 1997. He joined
American Century as a Portfolio Manager in 1988. He has a bachelor's degree
in business economics from the University of California and an MBA in
finance and economics from Northwestern University. He is a Chartered
Financial Analyst.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return the enclosed application along with an investment
check payable to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts). If your redemption activity causes
the value of your account to fall below this account minimum, your shares
may be redeemed involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in Income & Growth 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?
Income & Growth pays distributions of substantially all of its income
quarterly. Distributions from realized capital gains are paid twice a year,
usually in March and 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo (reg. sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16947 9907 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo (reg. sm)]
American
Century
Global Gold Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
JULY 26, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
GLOBAL GOLD FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Global Gold seeks 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.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund's investment strategy utilizes quantitative management techniques
as well as fundamental stock selection in a two-part process. The first part
involves selecting stocks based on several valuation criteria, without
comparing the fund's holdings to the holdings of an index or benchmark.
In the second part of the process, the managers use a technique called
portfolio optimization. In portfolio optimization, the managers use a
computer model to build a portfolio of stocks that they believe 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. The goal is to create a fund that
produces performance similar to performance of the worldwide gold equities
market.
The managers use a proprietary benchmark that the advisor developed and
monitors that represents the worldwide gold equities market. This
proprietary benchmark contains securities of companies engaged in mining,
processing, exploring for or otherwise dealing with gold or other precious
metals (Gold Companies). To be included in the benchmark, Gold Companies
must be a certain size and receive a minimum percentage of their revenues
from gold-related activities or have a minimum percentage of their assets
invested in gold-related assets.
Global Gold will concentrate its investments in securities of Gold
Companies. Under normal circumstances, at least 65% of the value of the fund
will be invested in such companies. When the managers believe that it is
prudent, the fund may invest in securities other than stocks, such as
convertible securities, sponsored or unsponsored American Depositary
Receipts, gold, gold certificates or gold futures. Normally, the fund
managers will invest in securities of companies in at least three different
countries.
The fund may invest in securities other than stocks, such as convertible
securities, foreign securities other than stocks, short-term instruments and
non-leveraged stock index futures contracts. "Non-leveraged" means that the
fund may not invest in futures contracts where it would be possible to lose
more than the fund invested. Global Gold also may purchase debt securities,
such as notes, bonds, debentures or commercial paper.
Additional information about Global Gold's investments is available in its
annual and semiannual reports. In these reports you will find a discussion
of the market conditions and investment strategies that significantly
affected the fund's performance during the most recent fiscal period. You
may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of Global Gold's shares depends on the value of the stocks and
other securities it owns. The value of the individual securities Global Gold
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 Global
Gold may be worth more or less than the price you paid. If you sell your
shares when the value is less than the price you paid, you will lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
* Because Global Gold concentrates its investments in Gold Companies, it may
be subject to greater risks and market fluctuations than a portfolio
representing a broader range of industries. Gold stocks generally are
considered speculative because of their high share price volatility, and the
fund's share price may be affected by this volatility.
* Many investors believe that gold investments hedge against inflation,
currency devaluations, and general stock market declines, but there is no
guarantee that these historical inverse relationships will continue.
Global Gold American Century Investments
* Global Gold invests primarily in foreign securities, which generally
involves greater risks than investing in U.S. securities. These risks are
summarized below:
Currency Risk. In addition to changes in the value of the fund's
investments, changes in the value of foreign currencies against the U.S.
dollar also could result in gains or losses to the fund. The value of a
share of Global Gold is determined in U.S. dollars. The fund's
investments, however, generally are held in the foreign currency of the
country where investments are made. As a result, the fund could
recognize a gain or loss based solely upon a change in the exchange rate
between the foreign currency and the U.S. dollar.
Political and Economic Risk. Many countries where the fund invests are
not as politically or economically developed as the United States. As a
result, the economies and political and social structures of these
countries could be unstable and exert forces that could cause the value
of the fund's investments to decrease. The fund also could be unable to
enforce its ownership rights or pursue legal remedies in countries where
it invests.
Market and Trading Risk. The trading markets for many foreign securities
are not as active as U.S. markets and may have less governmental
regulation and oversight. Foreign markets also may have clearance and
settlement procedures that make it difficult for the fund to buy and
sell securities. These factors could result in a loss to the fund by
causing the fund to be unable to dispose of an investment, by causing
the fund to miss an attractive investment opportunity, or by causing
fund assets to be uninvested for some period of time.
Availability of Information. Foreign companies generally are not subject
to the regulatory controls or uniform accounting, auditing, and
financial reporting standards imposed on U.S. issuers. As a result,
there may be less publicly available information about foreign issuers
than is available regarding U.S. issuers.
In summary, Global Gold is intended for investors who find Gold Companies an
appropriate investment and who are willing to accept the increased risk
associated with the fund's investment strategy. An investment in the fund
should not be considered a complete investment program and is not
appropriate for investors who are unable to tolerate rapid fluctuations in
the value of their investment.
FUND PERFORMANCE
The following bar chart shows the actual performance of Global Gold's
Investor Class shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to year.
The bar chart and the performance information below are not intended to
indicate how the fund will perform in the future.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 -12.18%
1997 -41.47%
1996 -2.76%
1995 9.25%
1994 -16.75%
1993 81.22%
1992 -8.65%
1991 -11.23%
1990 -19.43%
1989 29.93%
(1) As of June 30, 1999, the end of the most recent calendar quarter, Global
Gold's year-to-date return was -7.84%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
Global Gold 34.28% (2Q 1993) -31.35% (4Q 1997)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The MSCI World Stock Index, an
unmanaged index that reflects no operating costs, is included as a benchmark
for performance comparisons.
1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1999)
- ---------------------------------------------------------
Global Gold -11.93% -13.42% -4.33% -4.89%
MSCI World Stock Index 15.67% 16.75% 11.48% 12.16%(2)
Fund Benchmark -7.06% -13.10% -3.62% -3.95%(2)
(1) The fund's inception date is August 17, 1988.
(2) Benchmark from August 31, 1988.
Global Gold Fund Profile
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
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
-----------------------------------------
Global Gold Redemption Fee (as a percentage of amount redeemed)
Shares held less than 180 days 2.00%(1)
Shares held 180 days or more None
(1) This redemption fee is retained by the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------
Management Fee 0.69%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.69%
(1) Based on expenses incurred during the fund's most recent fiscal year. The
fund has a stepped fee schedule. As a result, the fund's management fee rate
generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel and interest, were less than 0.005%
for the most recent fiscal year.
EXAMPLE
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 operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$70 $220 $383 $856
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. Identified below are the portfolio
managers for the Global Gold team:
JOHN SCHNIEDWIND, Senior Vice President and Group Leader-Quantitative
Equity, joined American Century in 1982, and supervises the portfolio
management team that manages Global Gold. He has degrees from Purdue
University and an MBA in finance from the University of California. He is a
Chartered Financial Analyst.
WILLIAM MARTIN, Vice President and Senior Portfolio Manager, has served on
the management team for Global Gold since its inception. He joined American
Century in 1989. He has a degree from the University of Illinois. He is a
Chartered Financial Analyst.
JOSEPH STERLING, Portfolio Manager, joined the team managing Global Gold in
June 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 bachelor's degree from the University of
California-Berkeley.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return the enclosed application along with an investment
check payable to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts). If your redemption activity causes
the value of your account to fall below this account minimum, your shares
may be redeemed involuntarily.
Global Gold American Century Investments
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 Global Gold 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?
Global Gold pays distributions of substantially all of its income, if any,
on a semiannual basis in June and December. Distributions from realized
capital gains are paid twice a year, usually in March and 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or 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
a Service Representative at 1-800-345-3533.
Global Gold Fund Profile
- --------------------------------------------------------------------------------
[american century logo (reg. sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16997 9907 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo (reg. sm)]
American
Century
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
Global Natural Resources Fund
JULY 26, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
GLOBAL NATURAL RESOURCES FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Global Natural Resources seeks to realize a total return (capital growth and
dividends) consistent with investment in securities of companies that are
engaged in the natural resources industries.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
Global Natural Resources will concentrate its investments in securities of
companies engaged in the natural resources industries. The fund's investment
strategy utilizes some quantitative management techniques as well as
fundamental stock selection. The fund managers build the fund's portfolio
using a top-down approach. They first consider factors in the global economy
that affect the supply and demand in commodity markets. The managers then
review those factors and how they affect particular industries, and
determine whether to over- or under-weight certain industries compared to
the benchmark. The managers next consider the cost structure of individual
companies and analyze the economies of the regions where the companies are
located or operate. The managers then create a selection list of stocks for
the portfolio.
The selection list is then compared to the fund's benchmark using portfolio
optimization. In portfolio optimization, the managers use a computer model
to build a portfolio of stocks from the selection list that they believe
will provide the optimal balance between risk and expected return. The goal
is to create a fund that provides better returns than the benchmark without
taking on significant additional risk. The fund's benchmark is a subset of
companies in the energy and basic materials sectors of the Dow Jones World
Stock Index* (DJWSI).
The managers do not attempt to time the market. Instead, they intend to keep
Global Natural Resources essentially fully invested in stocks regardless of
the movement of stock prices generally. The managers also may invest up to
35% of the fund's assets in when-issued and forward commitment agreements if
necessary to purchase securities. In these agreements the transaction price
and yield are each fixed at the time the commitment is made, but payment
typically occurs 15 to 45 days later.
The fund may invest in securities other than stocks, such as convertible
securities, foreign securities other than stocks, short-term instruments and
non-leveraged stock index futures contracts. "Non-leveraged" means that the
fund may not invest in futures contracts where it would be possible to lose
more than the fund invested.
Additional information about Global Natural Resources' investments is
available in its annual and semiannual reports. In these reports you will
find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of Global Natural Resources' shares depends on the value of the
stocks and other securities it owns. The value of the individual securities
Global Natural Resources 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 Global
Natural Resources may be worth more or less than the price you paid. If you
sell your shares when the value is less than the price you paid, you will
lose money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
* Because Global Natural Resources concentrates its investments in natural
resource companies, it may be subject to greater risks and market
fluctuations than a portfolio representing a broader range of industries.
Historically, the securities of some natural resources companies may be
subject to broad price fluctuations during periods of economic or financial
instability. These fluctuations may cause volatility in the fund's share
price.
* The DJWSI is the property of Dow Jones & Co., Inc.
Global Natural Resources American Century Investments
* Many investors believe that investments in natural resources companies
hedge against commodity-price-driven inflation, but there is no guarantee
that this historical inverse relationship will continue.
* Depending on the composition of the sectors, Global Natural Resources may
invest in foreign securities, which generally involves greater risks than
investing in U.S. securities. These risks are summarized below:
Currency Risk. In addition to changes in the value of the fund's
investments, changes in the value of foreign currencies against the U.S.
dollar also could result in gains or losses to the fund. The value of a
share of Global Natural Resources is determined in U.S. dollars. The
fund's investments, however, generally are held in the foreign currency
of the country where investments are made. As a result, the fund could
recognize a gain or loss based solely upon a change in the exchange rate
between the foreign currency and the U.S. dollar.
Political and Economic Risk. Many countries where the fund invests are
not as politically or economically developed as the United States. As a
result, the economies and political and social structures of these
countries could be unstable and exert forces that could cause the value
of the fund's investments to decrease. The fund also could be unable to
enforce its ownership rights or pursue legal remedies in countries where
it invests.
Market and Trading Risk. The trading markets for many foreign securities
are not as active as U.S. markets and may have less governmental
regulation and oversight. Foreign markets also may have clearance and
settlement procedures that make it difficult for the fund to buy and
sell securities. These factors could result in a loss to the fund by
causing the fund to be unable to dispose of an investment, by causing
the fund to miss an attractive investment opportunity, or by causing
fund assets to be uninvested for some period of time.
Availability of Information. Foreign companies generally are not subject
to the regulatory controls or uniform accounting, auditing, and
financial reporting standards imposed on U.S. issuers. As a result,
there may be less publicly available information about foreign issuers
than is available regarding U.S. issuers.
In summary, Global Natural Resources is intended for investors who find
natural resources companies an appropriate investment and who are willing to
accept the increased risk associated with the fund's investment strategy. An
investment in the fund should not be considered a complete investment
program and is not appropriate for investors who are unable to tolerate
rapid fluctuations in the value of their investment.
FUND PERFORMANCE
The following bar chart shows the actual performance of Global Natural
Resources' Investor Class shares for each full calendar year since the
fund's inception on September 15, 1994. The bar chart indicates the
volatility of the fund's historical returns from year to year. The bar chart
and the performance information below are not intended to indicate how the
fund will perform in the future.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 -6.30%
1997 2.50%
1996 15.45%
1995 14.40%
(1 )As of June 30, 1999, the end of the most recent calendar quarter,
Global Natural Resources' year-to-date return was 17.83%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
Global Natural Resources 12.01% (2Q 1999) -11.73% (4Q 1997)
The following table shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Dow Jones World Stock Index, an
unmanaged index that reflects no operating costs, is included as a benchmark
for performance comparisons.
1 YEAR LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1999)
---------------------------------------------------------
Global Natural Resources 9.08% 7.95%
Dow Jones World Stock Index 14.04% 10.58%(2)
(1) The inception date for Global Natural Resources is September 15,
1994.
(2) Benchmark from September 30, 1994.
Global Natural Resources Fund Profile
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
* to redeem your shares.
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------
Management Fee 0.69%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.69%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel and interest, were less than
0.005% for the most recent fiscal year.
EXAMPLE
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 operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$70 $220 $383 $856
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. Identified below are the portfolio
managers for the Global Natural Resources team:
JOHN SCHNIEDWIND, Senior Vice President and Group Leader-Quantitative
Equity, joined American Century in 1982, and supervises the portfolio
management team that manages Global Natural Resources. He has degrees from
Purdue University and an MBA in finance from the University of California.
He is a Chartered Financial Analyst.
WILLIAM MARTIN, Vice President and Senior Portfolio Manager, has served on
the management team for Global Natural Resources since its inception. He
joined American Century in 1989. He has a degree from the University of
Illinois. He is a Chartered Financial Analyst.
JOSEPH B. STERLING, Portfolio Manager, joined the team managing Global
Natural Resources in November 1996. Prior positions held by Mr. Sterling
since joining American Century in 1989 include those of Associate Portfolio
Manager and Research Analyst. He has a bachelor's degree from the University
of California-Berkeley.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return the enclosed application along with an investment
check payable to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts). If your redemption activity causes
the value of your account to fall below this account minimum, your shares
may be redeemed involuntarily.
Global Natural Resources American Century Investments
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 Global Natural Resources
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?
Global Natural Resources pays distributions of substantially all of its
income, if any, on a semiannual basis in June and December. Distributions
from realized capital gains are paid twice a year, usually in March and
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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or 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
a Service Representative at 1-800-345-3533.
Global Natural Resources Fund Profile
- --------------------------------------------------------------------------------
[american century logo (reg. sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16998 9907 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo (reg. sm)]
American
Century
Utilities Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
JULY 26, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
UTILITIES FUND
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 managers use a technique called
portfolio optimization. In portfolio optimization, the fund managers use a
computer model to build a portfolio of stocks that they believe 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. Of this
75%, the fund managers 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 may invest in securities other than stocks, such as convertible
securities, foreign securities, short-term instruments and non-leveraged
stock index futures contracts. "Non-leveraged" means that the fund may not
invest in futures contracts where it would be possible to lose more than the
fund invested.
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 December 1998,
the benchmark was comprised of 163 companies with an aggregate market
capitalization of almost $1.02 trillion. The average market capitalization
of the companies in the benchmark was $6.26 billion.
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 fiscal 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 that the
fund 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 (FDIC) or any other
government agency.
Utilities American Century Investments
* 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 levels. 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 managers invest 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, less stable political and economic structures, reduced
availability of public information, and lack of uniform financial reporting
and regulatory practices similar to those that apply in the United States.
These factors make investing in foreign securities generally riskier than
investing in U.S. stocks.
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. The bar chart and the performance information
below are not intended to indicate how the fund will perform in the future.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 27.43%
1997 35.82%
1996 4.82%
1995 35.70%
1994 -10.03%
(1) As of June 30, 1999, the end of the most recent calendar quarter,
Utilities' year-to-date return was 6.84%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
Utilities 18.04% (4Q 1997) -8.70% (1Q 1994)
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 performance
comparisons. For current performance information, including yields, please
call us or access our Web site.
1 YEAR 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1999)
- ---------------------------------------------------------
Utilities 25.42% 21.21% 15.73%
S&P 500 22.75% 27.81% 22.29%
Fund Benchmark(2) 31.18% 23.54% 17.33%
(1) The inception date for Utilities is March 1, 1993.
(2) The Fund Benchmark consists of approximately 163 utility stocks that meet
the fund's investment criteria. The benchmark's composition by industry group is
approximately 50% telephone and communication services, 35% electric and 15%
natural gas companies.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------
Management Fee 0.69%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.69%
(1)Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's management
fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel and interest, were less than
0.005% for the most recent fiscal year.
Utilities Fund Profile
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
$70 $220 $383 $856
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. Identified below are the portfolio
managers for the Utilities team:
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 degrees
from Purdue University and the University of California-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 a degree from Stanford
University and an MBA with a specialization in finance from the University
of Chicago. He is a Chartered Financial Analyst.
JOSEPH B. STERLING, Portfolio Manager, joined the team managing Utilities in
June 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 bachelor's degree from the University of
California-Berkeley.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return the enclosed application along with an investment
check payable to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts). If your redemption activity causes
the value of your account to fall below this account minimum, your shares
may be redeemed involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in 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 semiannually, usually in
March and 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.
Utilities American Century Investments
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
Utilities Fund Profile
- --------------------------------------------------------------------------------
[american century logo (reg. sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16993 9907 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo (reg. sm)]
American
Century
Small Cap Quantitative Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
JULY 26, 1999
INVESTOR CLASS
You may obtain the Prospectus and other information about the fund at no cost
by calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.
SMALL CAP QUANTITATIVE FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Small Cap Quantitative seeks capital appreciation by investing primarily in
common stocks of small companies.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund's investment strategy utilizes quantitative management techniques
in a two-step process that draws heavily on computer technology. In the
first step, the fund managers rank stocks, primarily of smaller companies
(measured by the value of their stock), from most attractive to least
attractive. This is determined by using a computer model that combines
measures of a stock's value, as well as measures of its growth potential. To
measure value, the fund managers use ratios of stock price-to-book value and
stock price-to-cash flow, among others. To measure growth, the fund managers
use, among others, the rate of growth of a company's earnings and changes in
the earnings estimates for a company.
In the second step, the fund managers use a technique called portfolio
optimization. In portfolio optimization, the fund managers use a computer
model to build a portfolio of stocks that they believe will provide the
optimal balance between risk and expected return of the portfolio, as
measured in the stock ranking completed in the first step. The goal is to
create a fund that provides better returns than the S&P Small-Cap 600 Index
without taking on significant additional risk.
The fund invests primarily in common stocks of companies which, at the time
of investment, have market capitalization not greater than that of the
largest company in the S&P Small-Cap 600 Index. The S&P Small-Cap 600 Index
is an unmanaged stock index that tracks the performance of equity securities
of smaller companies. As of June 30, 1999, the largest company in the index
had a market capitalization of approximately $2.6 billion, while the median
company in the index had a market capitalization of approximately $483
million.
The fund may invest in securities other than stocks, such as convertible
securities, foreign securities, short-term instruments and non-leveraged
stock index futures contracts. "Non-leveraged" means that the fund may not
invest in futures contracts where it would be possible to lose more than the
fund invested.
Additional information about Small Cap Quantitative's investments is
available in its semiannual report. In this report you will find a
discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period. You may get this report at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* The value of Small Cap Quantitative's shares depends on the value of the
stocks and other securities it owns. The value of the individual securities
the fund owns will go up and down depending on the performance of the
companies that issued them, general market and economic conditions, and
investor confidence.
* Market performance tends to be cyclical and, in the various cycles,
certain investment styles may fall in and out of favor. If the market is not
favoring the fund's style, the fund's gains may not be as big as, or its
losses may be bigger than, other equity funds using different investment
styles.
* As with all funds, at any given time the value of your shares of Small Cap
Quantitative may be worth more or less than the price you paid. If you sell
your shares when the value is less than the price you paid, you will lose
money.
* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
* Although the fund managers invest the fund's assets primarily in U.S.
stocks, Small Cap Quantitative can invest in securities of foreign
companies. Foreign securities can have certain unique risks, including
fluctuations in currency exchange rates, less stable political and economic
structures, reduced availability of public information, and the lack of
uniform financial reporting and regulatory practices similar to those that
apply in the United States. These factors make investing in foreign
securities generally riskier than investing in U.S. stocks.
Small Cap Quantitative American Century Investments
In summary, Small Cap Quantitative is intended for investors who seek
capital appreciation through a small capitalization equity fund and who are
willing to accept the risks associated with the fund's investment strategy.
4. WHAT ARE THE FUND'S FEES AND EXPENSES?
There are no sales loads, fees or other charges
* to buy fund shares directly from American Century
* to reinvest dividends in additional shares
* to exchange into the Investor Class shares of other American Century fund
* to redeem your shares
The following table describes the fees and expenses that you will pay if you
buy and hold shares of the fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
---------------------------------------------
Management Fee 0.88%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 0.88%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel and interest, are expected to
be less than 0.005% for the current fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years
$96 $299
Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.
5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?
American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. Identified below are the portfolio
managers for the Small Cap Quantitative team:
JOHN SCHNIEDWIND, Senior Vice President and Group Leader--Quantitative
Equity, supervises the team that manages Small Cap Quantitative. He has been
a member of the team that manages the fund since its inception in July 1998.
He has degrees from Purdue University and an MBA in finance from the
University of California. 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
managed the quantitative equity research effort since then. He has been a
member of the team that manages the fund since its inception in July 1998.
He has a degree from Stanford University and an MBA with a specialization in
finance from the University of Chicago. He is a Chartered Financial Analyst.
WILLIAM MARTIN, Vice President and Portfolio Manager, has been a member of
the team that manages the fund since its inception in July 1998. He joined
American Century in 1989. He has a bachelor's degree in economics from the
University of Illinois. He is a Chartered Financial Analyst.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return the enclosed application along with an investment
check payable to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts). If your redemption activity causes
the value of your account to fall below this account minimum, your shares
may be redeemed involuntarily.
Small Cap Quantitative Fund Profile
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in Small Cap Quantitative
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?
Small Cap Quantitative pays distributions of substantially all of its income
quarterly. Distributions from realized capital gains are paid twice a year,
usually in March and 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.
- --------------------------------------------------------------------------------
[american century logo (reg. sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]
SH-PRF-16949 9907 Funds Distributor, Inc.
