FUND PROFILE
International
Growth
INVESTOR CLASS
August 10, 1998
[american century logo(reg.sm)
American
Century(reg.tm)
- --------------------------------------------------------------------------------
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. 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 phone numbers and our address.
TWENTIETH CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
INTERNATIONAL GROWTH
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
International Growth seeks capital growth by investing primarily in
foreign equity securities. International Growth invests primarily in
securities of issuers in developed countries.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for securities of international companies that
they believe will increase in value over time. The managers use a "growth"
investment strategy developed by American Century that looks for companies
whose earnings and revenues are not only growing, but growing at a
successively faster, or accelerating, pace. Accelerating growth is shown,
for example, by growth that is faster this quarter than last and faster
this year than the year before.
Using American Century's extensive computer database, the managers track
financial information for thousands of companies to research and select the
stocks they believe will be able to sustain accelerating growth. This
strategy is based on the premise that, over the long term, the stocks of
companies with accelerating earnings and revenues have a
greater-than-average chance to increase in value. International Growth will
have at least 65% of its assets invested at all times in international
equity securities.
In addition to locating strong companies with accelerating earnings, the
fund managers believe that the diversification of the fund's holdings
across different countries and geographical regions is important in trying
to manage the risks of an international portfolio. For this reason, the
managers also consider the prospects for relative economic growth among
countries or regions, economic and political conditions, expected inflation
rates, currency exchange fluctuations, and tax considerations when making
investments.
Additional information about International 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
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 International Growth's shares depends on the value of the
stocks and other securities it owns. The value of the individual securities
International Growth 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
International 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. Additionally, an investment in the fund is not a bank
deposit, nor is it insured by the Federal Deposit Insurance Corporation or
any other government agency.
*International Growth 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 International Growth 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
International Growth American Century Investments
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, International Growth is intended for investors who find
foreign securities 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 bar chart below shows the actual performance of International
Growth's Investor Class shares for each calendar year since its inception
on May 9, 1991. It indicates the volatility of the fund's historical
returns from year to year. Neither it nor the quarterly information in the
next column is intended to indicate how the fund will perform in the
future.
[bar chart]
CALENDAR YEAR-BY-YEAR RETURNS
1992 1993 1994 1995 1996 1997
4.84 42.65 -4.76 11.89 14.43 19.72
As of June 30, 1998, the end of the most recent calendar quarter,
International Growth's year-to-date return was 25.89%.
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter since the fund's inception on May 9, 1991, are provided in
the chart in the next column to indicate the fund's potential short-term
volatility. Shareholders should be aware, however, that International
Growth is intended for investors with a long-term investment horizon and is
not managed for short-term results.
[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 12/31/93 18.32%
Quarter Ended 12/31/94 - 5.86%
The table below shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Morgan Stanley Capital
International Europe, Australia, Far East (EAFE) Index, an unmanaged index
that reflects no operating costs, is included for long-term performance
comparisons.
1 YR. 5 YRS. LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1998)
International Growth 25.75% 18.29% 16.77%
MSCI EAFE Index 6.10% 10.03% 8.59%
(index as of 4/30/91)
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 1.37%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 1.37%(1)
(1)Based upon assets at November 30, 1997. The fund has a stepped fee
schedule. As a result, the fund's management fee decreases as fund
assets increase.
(2)Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
Fund Profile International Growth
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
-----------------------------------------------
$140 $430 $750 $1,640
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 our mutual funds. The portfolio managers on the
International Growth team are:
HENRIK STRABO, Senior Vice President and Portfolio Manager, joined
American Century in 1993 as an Investment Analyst. In 1995, he was promoted
to Portfolio Manager.
MARK S. KOPINSKI, Vice President and Portfolio Manager, rejoined
American Century in 1997 following two years as Vice President and
Portfolio Manager of Federated Investors, Inc. Prior to 1995, Mr. Kopinski
served as Vice President and Portfolio Manager of American Century.
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 $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 the 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 the fund 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?
International Growth pays distributions of substantially all of its
income and realized capital gains once a year, 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. Fund shareholders also may be able to claim a foreign tax credit for
any foreign income taxes paid by the fund. 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 may 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.
INTERNATIONAL GROWTH AMERICAN CENTURY INVESTMENTS
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.
Fund Profile International Growth
- ------------------------------------------------------------------------------
[american century logo(reg.sm)
American
Century(reg.tm)
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
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE 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.
(c) 1998 American Century Services Corporation
SH-BRO-12616 9808
<PAGE>
FUND PROFILE
International
Discovery
INVESTOR CLASS
August 10, 1998
[american century logo(reg.sm)
American
Century(reg.tm)
- --------------------------------------------------------------------------------
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. 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 phone numbers and our address.
TWENTIETH CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
INTERNATIONAL DISCOVERY
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
International Discovery seeks capital growth by investing primarily in
equity securities of smaller foreign companies. These smaller companies
have a market capitalization (the number of shares times the share price)
at the time of investment of less than $1 billion or will have less than
$500 million in freely tradable securities. As much as one-half of the fund
may be invested in emerging market countries.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for securities of international companies that
they believe will increase in value over time. The managers use a "growth"
investment strategy developed by American Century that looks for companies
whose earnings and revenues are not only growing, but growing at a
successively faster, or accelerating, pace. Accelerating growth is shown,
for example, by growth that is faster this quarter than last and faster
this year than the year before.
Using American Century's extensive computer database, the managers track
financial information for thousands of companies to research and select the
stocks they believe will be able to sustain accelerating growth. This
strategy is based on the premise that, over the long term, the stocks of
companies with accelerating earnings and revenues have a
greater-than-average chance to increase in value.
In addition to locating strong companies with accelerating earnings, the
fund managers believe that the diversification of the fund's holdings
across different countries and geographical regions is important in trying
to manage the risks of an international portfolio. For this reason, the
managers also consider the prospects for relative economic growth among
countries or regions, economic and political conditions, expected inflation
rates, currency exchange fluctuations, and tax considerations when making
investments.
Additional information about International Discovery'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
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 International Discovery's shares depends on the value of the
stocks and other securities it owns. The value of the individual securities
International Discovery 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
International Discovery 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. Additionally, an investment in the fund is not a bank
deposit, nor is it insured by the Federal Deposit Insurance Corporation or
any other government agency.
*International Discovery invests primarily in smaller foreign issuers and
may invest up to 50% of its assets in emerging market countries. Investing
in smaller foreign issuers, especially those in emerging market countries,
is much riskier than investing in U.S. companies or even investing in
foreign securities generally. Smaller companies may have limited resources,
trade less frequently, and have less publicly available information.
Smaller companies in emerging markets also may be subject to government and
economic instability, the effect of which can be magnified by the country's
financial markets. Each of these potential factors may cause the fund's
investments to be extremely volatile and could result in significant losses
to the fund.
*In addition to the risks of investing in smaller foreign companies, there
are many risks associated with foreign investing generally. 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 International Discovery is determined in U.S. dollars. The fund's
investments, however, generally are held in the foreign
International Discovery American Century Investments
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, International Discovery is intended for investors who find
foreign securities an appropriate investment and who are willing to accept
the increased risk of investing in smaller foreign companies. 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 bar chart in the following column shows the actual performance of
International Discovery's Investor Class shares for each calendar year
since its inception on April 1, 1994. It indicates the volatility of the
fund's historical returns from year to year. Neither it nor the quarterly
information in the next column is intended to indicate how the fund will
perform in the future.
[bar chart]
CALENDAR YEAR-BY-YEAR RETURNS
1995 1996 1997
9.89% 31.18% 17.48%
As of June 30, 1998, the end of the most recent calendar quarter,
International Discovery's year-to-date return was 29.45%.
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter since the fund's inception on April 1, 1994, are provided
in the chart below to indicate the fund's potential short-term volatility.
Shareholders should be aware, however, that International Discovery is
intended for investors with a long-term investment horizon and is not
managed for short-term results.
[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 3/31/98 20.49%
Quarter Ended 12/31/97 - 7.92%
The table below shows the average annual return of the fund's Investor
Class shares for the periods indicated. The Morgan Stanley Capital
International Europe, Australia, Far East (EAFE) Index, an unmanaged index
that reflects no operating costs, is included for long-term performance
comparisons.
1 YR. LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1998)
International Discovery 28.95% 22.44%
MSCI EAFE Index 6.10% 9.12%
(index as of 3/31/94)
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 or to reinvest dividends in additional
shares.
THE FUND CHARGES A REDEMPTION FEE OF 2.0% OF THE VALUE OF THE SHARES
SOLD WITHIN 180 DAYS OF THEIR PURCHASE. This
Fund Profile International Discovery
redemption fee is retained by the fund. It is intended to discourage
short-term investment in the fund as well as to decrease the negative
impact that short-term investors have on the shareholders remaining in the
fund. Otherwise, there are no fees or charges 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 1.68%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 1.68%(1)
(1)Based upon assets at November 30, 1997. The fund has a stepped fee
schedule. As a result, the fund's management fee decreases as fund
assets increase.
(2)Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
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
---------------------------------------------
$170 $530 $910 $1,970
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 our mutual funds. The portfolio managers on the
International Discovery team are:
HENRIK STRABO, Senior Vice President and Portfolio Manager, joined
American Century in 1993 as an Investment Analyst. In 1995, he was promoted
to Portfolio Manager.
MARK S. KOPINSKI, Vice President and Portfolio Manager, rejoined
American Century in 1997 following two years as Vice President and
Portfolio Manager at Federated Investors, Inc. Prior to 1995, Mr. Kopinski
served as Vice President and Portfolio Manager of American Century.
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 $10,000. If the value of your account
falls below the 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 International
Discovery 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.
IF YOU SELL SHARES OF INTERNATIONAL DISCOVERY WITHIN 180 DAYS OF THEIR
PURCHASE, YOU WILL PAY A REDEMPTION FEE OF 2.0% OF THE VALUE OF THE SHARES
SOLD.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
International Discovery pays distributions of substantially all of its
income and realized capital gains once a year, 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. Fund shareholders also may be able to claim a foreign tax credit for
any foreign income taxes paid by the fund. Distributions are reinvested
automatically in additional shares unless you choose another option.
International Discovery 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 may 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.
Fund Profile International Discovery
- --------------------------------------------------------------------------------
[american century logo(reg.sm)
American
Century(reg.tm)
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
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE 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.
(c) 1998 American Century Services Corporation
SH-BRO-12617 9808
<PAGE>
FUND PROFILE
Emerging Markets
INVESTOR CLASS
August 10, 1998
[american century logo(reg.sm)
American
Century(reg.tm)
- --------------------------------------------------------------------------------
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. 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 phone numbers and our address.
TWENTIETH CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
EMERGING MARKETS
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Emerging Markets seeks capital growth by investing primarily in equity
securities of emerging market companies. The fund considers emerging market
companies to be companies located in emerging market countries and
companies that derive a significant portion of their business from emerging
market countries.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for securities of emerging market companies that
they believe will increase in value over time. The managers use a "growth"
investment strategy developed by American Century that looks for companies
whose earnings and revenues are not only growing, but growing at a
successively faster, or accelerating, pace. Accelerating growth is shown,
for example, by growth that is faster this quarter than last and faster
this year than the year before.
Using American Century's extensive computer database, the managers track
financial information for thousands of companies to research and select the
stocks they believe will be able to sustain accelerating growth. This
strategy is based on the premise that, over the long term, the stocks of
companies with accelerating earnings and revenues have a
greater-than-average chance to increase in value.
In addition to locating strong companies with accelerating earnings, the
fund managers believe that the diversification of the fund's holdings
across different countries and geographical regions is important in trying
to manage the risks of an inter-national portfolio. For this reason, the
managers also consider the prospects for relative economic growth among
countries or regions, economic and political conditions, expected inflation
rates, currency exchange fluctuations, and tax considerations when making
investments.
Additional information about Emerging Markets' 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 Emerging Markets' shares depends on the value of the stocks
and other securities it owns. The value of the individual securities
Emerging Markets 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 Emerging
Markets 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.
Additionally, an investment in the fund is not a bank deposit, nor is it
insured by the Federal Deposit Insurance Corporation or any other
government agency.
*Emerging Markets invests primarily in emerging market companies. Investing
in emerging market companies is much riskier than investing in U.S.
companies or even investing in foreign securities generally. Emerging
market countries may have extremely unstable governments and/or economies
that are subject to sudden change. These changes may be magnified by the
country's financial markets resulting in significant volatility in the
fund's investments. In addition to the risks of emerging market companies,
there are many risks associated with foreign investing generally. 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 Emerging Markets 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
Emerging Markets American Century Investments
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, Emerging Markets is intended for investors who find foreign
securities an appropriate investment and who are willing to accept the
increased risk of investing in emerging market companies. 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 highest and lowest returns of the fund's Investor Class shares for a
calendar quarter since the fund's inception on September 30, 1997, are
provided in the chart below to indicate the fund's potential short-term
volatility. Shareholders should be aware, however, that Emerging Markets is
intended for investors with a long-term investment horizon and is not
managed for short-term results.
[bar chart]
HIGHEST AND LOWEST QUARTERLY RETURNS
Quarter Ended 3/31/98 8.37%
Quarter Ended 12/31/97 -16.40%
The table below shows the average annual return of the fund's Investor
Class shares since its inception on September 30, 1997. The Morgan Stanley
Capital International Emerging Markets Free Index, an unmanaged index that
reflects no operating costs, is included for long-term performance
comparisons.
LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1998)
Emerging Markets -22.00%
Morgan Stanley Capital International
Emerging Markets Free Index -33.08%
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 2.00%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 2.00%(1)
(1)Based upon assets at November 30, 1997. The fund has a stepped fee
schedule. As a result, the fund's management fee decreases as fund
assets increase.
(2)Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
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
--------------------------------------------
$200 $620 $1,070 $2,310
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
Fund Profile Emerging Markets
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 our mutual funds. The portfolio managers on the Emerging
Markets team are:
MARK S. KOPINSKI, Vice President and Portfolio Manager, rejoined
American Century in 1997 following two years as Vice President and
Portfolio Manager of Federated Investors, Inc. Prior to 1995, Mr. Kopinski
served as Vice President and Portfolio Manager of American Century.
MICHAEL J. DONNELLY, Vice President and Portfolio Manager, joined
American Century in 1997. From 1993 to 1997, Mr. Donnelly served as Vice
President and Portfolio Manager for Federated Investors, Inc. Prior to
1993, Mr. Donnelly served as Assistant Vice President for First Korea Bank.
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 $10,000. If the value of your account
falls below the 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 the fund 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?
Emerging Markets pays distributions of substantially all of its income
and realized capital gains once a year, 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. Fund shareholders also
may be able to claim a foreign tax credit for any foreign income taxes paid
by the fund. 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 may 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(reg.tm)
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
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE 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.
(c) 1998 American Century Services Corporation
SH-BRO-12618 9808
