FUND PROFILE
International Growth
INVESTOR CLASS
September 30, 1998
[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 has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
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 advisor looks for securities of international companies that it
believes will increase in value over time. The fund advisor uses 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 fund advisor
tracks financial information for thousands of companies to research and
select the stocks it believes 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 advisor believes 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
fund advisor also considers 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.
*An investment in the fund is not a bank deposit, nor is it insured or
guaranteed 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 following bar chart shows the actual performance of International
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. Neither the bar chart nor the
performance information below it 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
International Growth 4.84 42.65 -4.76 11.89 14.43 19.72
As of September 30, 1998, the end of the most recent calendar quarter,
International Growth's year-to-date return was 3.30%.
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 following chart to indicate the fund's historical 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 9/30/98 -17.94%
The following table 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 as a benchmark for long-term
performance comparisons.
1 YEAR 5 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
International Growth -0.57% 12.28% 13.09%
MSCI EAFE Index -8.34% 5.35% 5.99%
(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
-------------------------------------------------------------
$139 $432 $746 $1,636
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. The portfolio managers on the
International Growth team are:
HENRIK STRABO, Senior Vice President and Portfolio Manager, has been a
member of the team that manages International Growth since April 1994. He
joined American Century in 1993 as an Investment Analyst.
MARK S. KOPINSKI, Vice President and Portfolio Manager, has been a
member of the team that manages International Growth since rejoining
American Century in April 1997. Before rejoining American Century, he
served as Vice President and Portfolio Manager of Federated Investors, Inc.
from June 1995 to March 1997. Prior to 1995, he 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 at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in 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.
INTERNATIONAL GROWTH 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 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 GROWTH
- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
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.
SH-BRO-13872 9810
<PAGE>
FUND PROFILE
International Discovery
INVESTOR CLASS
September 30, 1998
[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 has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
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.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund advisor looks for securities of international companies that it
believes will increase in value over time. The fund advisor uses 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 fund advisor
tracks financial information for thousands of companies to research and
select the stocks it believes 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 advisor believes 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
fund advisor also considers 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.
*An investment in the fund is not a bank deposit, nor is it insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
*International Discovery invests primarily in smaller foreign issuers.
Investing in smaller foreign issuers 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 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.
INTERNATIONAL DISCOVERY AMERICAN CENTURY INVESTMENTS
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 following bar chart shows the actual performance of International
Discovery's Investor Class shares for each calendar year since the fund's
inception on April 1, 1994. The bar chart indicates the volatility of the
fund's historical returns from year to year. Neither the bar chart nor the
performance information below it is intended to indicate how the fund will
perform in the future.
[bar chart]
CALENDAR YEAR-BY-YEAR RETURNS
1995 1996 1997
International Discovery 9.89 31.18 17.48
As of September 30, 1998, the end of the most recent calendar quarter,
International Discovery's year-to-date return was 3.68%.
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 following chart to indicate the fund's historical 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 9/30/98 -19.91%
The following table 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 as a benchmark for long-term
performance comparisons.
1 YEAR LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
International Discovery -4.53% 15.22%
MSCI EAFE Index -8.34% 4.95%
(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.
FUND PROFILE INTERNATIONAL DISCOVERY
THE FUND CHARGES A REDEMPTION FEE OF 2.0% OF THE VALUE OF THE SHARES
SOLD WITHIN 180 DAYS OF THEIR PURCHASE. This 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 $526 $907 $1,971
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. The portfolio managers on the
International Discovery team are:
HENRIK STRABO, Senior Vice President and Portfolio Manager, has been a
member of the team that manages International Discovery since April 1994.
He joined American Century in 1993 as an Investment Analyst.
MARK S. KOPINSKI, Vice President and Portfolio Manager, has been a
member of the team that manages International Discovery since rejoining
American Century in April 1997. Before rejoining American Century, he
served as Vice President and Portfolio Manager at Federated Investors, Inc.
from June 1995 to March 1997. Prior to 1995, he 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 at least $10,000. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in 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 will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
FUND PROFILE INTERNATIONAL DISCOVERY
- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
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.
SH-BRO-13873 9810
<PAGE>
FUND PROFILE
Emerging Markets
INVESTOR CLASS
September 30, 1998
[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 has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
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 advisor looks for securities of emerging market companies that
it believes will increase in value over time. The fund advisor uses 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 fund advisor
tracks financial information for thousands of companies to research and
select the stocks it believes 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 advisor believes 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
fund advisor also considers 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.
*An investment in the fund is not a bank deposit, nor is it insured or
guaranteed 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
EMERGING MARKETS AMERICAN CENTURY INVESTMENTS
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, 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.
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
-------------------------------------------------------------------
$202 $623 $1,069 $2,305
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. The portfolio managers on the Emerging
Markets team are:
MARK S. KOPINSKI, Vice President and Portfolio Manager, has been a
member of the team that manages Emerging Markets since its inception.
Before rejoining American Century, he served as Vice President and
Portfolio Manager of Federated Investors, Inc. from June 1995 to March
1997. Prior to 1995, he served as Vice President and Portfolio Manager of
American Century.
FUND PROFILE EMERGING MARKETS
MICHAEL J. DONNELLY, Vice President and Portfolio Manager, has been a
member of the team that manages Emerging Markets since its inception. He
joined American Century in August 1997. From 1993 to 1997, he served as
Vice President and Portfolio Manager for Federated Investors, Inc.
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $10,000. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in 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 will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
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[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
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.
SH-BRO-13874 9810
