AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
PROSPECTUS SUPPLEMENT
International Growth * International Discovery * Emerging Markets
SUPPLEMENT DATED JANUARY 15, 1998
Prospectus dated September 15, 1997
THE FOLLOWING DISCLOSURE SHOULD BE INSERTED AT THE END OF THE SECTION "INVESTING
IN FOREIGN SECURITIES GENERALLY" FOUND ON PAGE 10 OF THE INVESTOR CLASS AND
INSTITUTIONAL CLASS PROSPECTUSES AND PAGE 11 OF THE ADVISOR CLASS PROSPECTUS.
OWNERSHIP RISK. Evidence of securities ownership may be uncertain in many
foreign countries. In many of these countries, the most notable of which is the
Russian Federation, the ultimate evidence of securities ownership is the share
register held by the issuing company or its registrar. While some companies may
issue share certificates or provide extracts of the company's share register,
these are not negotiable instruments and are not effective evidence of
securities ownership. In an ownership dispute, the company's share register is
controlling. As a result, there is a risk that a fund's trade details could be
incorrectly or fraudulently entered on the issuer's share register at the time
of the transaction, or that a fund's ownership position could thereafter be
altered or deleted entirely resulting in a loss to the fund. While the funds
intend to invest directly in Russian companies which utilize an independent
registrar, there can be no assurance that such investments will not result in a
loss to the funds.
THE FOLLOWING DISCLOSURE SHOULD BE INSERTED AFTER THE SECTION "REPURCHASE
AGREEMENTS" FOUND ON PAGE 13 OF THE INVESTOR CLASS AND INSTITUTIONAL CLASS
PROSPECTUSES AND PAGE 14 OF THE ADVISOR CLASS PROSPECTUS.
FUTURES AND OPTIONS
The funds may invest in financial futures contracts and options thereon. A
financial futures contract is an agreement to take or make delivery of a
financial asset or an amount of cash, as specified in the applicable contract,
at some time in the future. The value of the asset or cash to be delivered at
the end of the contract period is calculated based upon the difference in value
between the making of the contract and the end of the contract period of a
financial index, indicator, or security underlying the futures contract.
Rather than actually purchasing a financial asset (e.g., a long- or
short-term treasury security) or all of the securities contained in a specific
index (e.g., the S&P 500), the manager may choose to purchase a futures contract
which reflects the value of such securities or index. For example, an S&P 500
futures contract reflects the value of the underlying companies that comprise
the S&P 500 Composite Stock Price Index. If the aggregate market value of the
index securities increases or decreases during the contract period of an S&P 500
futures contract, the amount of cash to be paid to the contractholder at the end
of the period would correspondingly increase or decrease. As a result, the
manager is able to expose to the market cash that is held by the funds to meet
anticipated redemptions or for future investment opportunities. Because futures
contracts generally settle more quickly than their underlying securities, the
manager believes that the use of futures and options thereon allows the funds to
be fully invested while maintaining the needed liquidity.
The funds will not purchase leveraged futures. When a fund enters into a
futures contract, it must make a deposit of cash or high-quality debt
securities, known as "initial margin," as partial security for its performance
under the contract. As the value of the contract fluctuates, a party to the
contract may be required to make additional margin payments, known as "variation
margin," to cover a portion of such fluctuation. A fund will also deposit in a
segregated account with its custodian bank cash or high-quality debt securities
in an amount equal to the fund's payment obligation under the futures contract,
less any initial or variation margin. For options sold, a fund will segregate
cash of high-quality debt securities equal to the value of the securities
underlying the option unless the option is otherwise covered.
THE FOLLOWING DISCLOSURE SHOULD BE INSERTED AFTER THE SECTION "RULE 144A
SECURITIES" FOUND ON PAGE 14 OF THE INVESTOR CLASS AND INSTITUTIONAL CLASS
PROSPECTUSES AND PAGE 15 OF THE ADVISOR CLASS PROSPECTUS.
INVESTMENTS IN COMPANIES WITH LIMITED OPERATING HISTORY
The funds may invest in the securities of issuers with limited operating
history. The manager considers an issuer to have a limited operating history if
that issuer has a record of less than three years of continuous operation.
Investments in securities of issuers with limited operating history may
involve greater risks than investments in securities of more mature issuers. By
their nature, such issuers present limited operating history and financial
information upon which the manager may base its investment decision on behalf of
the funds. In addition, financial and other information regarding such issuers,
when available, may be incomplete or inaccurate.
International Growth will not invest more than 5% of its total assets in the
securities of issuers with less than a three-year operating history.
International Discovery and Emerging Markets will not invest more than 10% of
their total assets in the securities of issuers with less than a three-year
operating history. The manager will consider periods of capital formation,
incubation, consolidation, and research and development in determining whether a
particular issuer has a record of three years of continuous operation.
THE FOLLOWING DISCLOSURE IS ADDED ON PAGE 24 OF THE INVESTOR CLASS PROSPECTUS,
PAGE 22 OF THE INSTITUTIONAL CLASS PROSPECTUS AND PAGE 19 OF THE ADVISOR CLASS
PROSPECTUS, FOLLOWING THE LAST PARAGRAPH UNDER THE HEADING "WHEN SHARE PRICE IS
DETERMINED."
We have contractual relationships with certain financial intermediaries in
which such intermediaries represent that they have systems to track the time at
which investment orders are received and to segregate orders received at
different times. Based on these representations, the fund has authorized such
intermediaries and their designees to accept purchase and redemption orders on
the fund's behalf up to the applicable cut-off time. The fund will be deemed to
have received such orders upon acceptance by the duly authorized intermediary,
and such orders will be priced at the fund's net asset value next determined
after acceptance on the fund's behalf by such intermediary.
THE FOLLOWING DISCLOSURE IS ADDED ON PAGE 28 OF THE INVESTOR CLASS PROSPECTUS,
PAGE 26 OF THE INSTITUTIONAL CLASS PROSPECTUS AND PAGE 23 OF THE ADVISOR CLASS
PROSPECTUS, FOLLOWING THE LAST PARAGRAPH UNDER THE HEADING "TRANSFER AND
ADMINISTRATIVE SERVICES."
Pursuant to a Sub-Administration Agreement with the manager, Funds
Distributor, Inc. (FDI) serves as the Co-Administrator for the funds. FDI is
responsible for (i) providing certain officers of the funds and (ii) reviewing
and filing marketing and sales literature on behalf of the funds. The fees and
expenses of FDI are paid by the manager.
THE FOLLOWING DISCLOSURE REPLACES THE FIRST SENTENCE UNDER THE HEADING
"DISTRIBUTION OF FUND SHARES" FOUND ON PAGE 28 OF THE INVESTOR CLASS PROSPECTUS,
PAGE 26 OF THE INSTITUTIONAL CLASS PROSPECTUS AND PAGE 23 OF THE ADVISOR CLASS
PROSPECTUS.
The funds' shares are distributed by FDI, a registered broker-dealer (the
Distributor). FDI is a wholly-owned indirect subsidiary of Boston Institutional
Group, Inc. FDI's principal business address is 60 State Street, Suite 1300,
Boston, Massachusetts 02109.
THE FOLLOWING DISCLOSURE SHOULD BE INSERTED AS THE LAST PARAGRAPH UNDER THE
HEADING "DISTRIBUTION OF FUND SHARES" ON PAGE 28 OF THE INVESTOR CLASS
PROSPECTUS, PAGE 26 OF THE INSTITUTIONAL CLASS PROSPECTUS AND PAGE 23 OF THE
ADVISOR CLASS PROSPECTUS.
Investors may open accounts with American Century only through the
Distributor. All purchase transactions in the funds offered by this Prospectus
are processed by the transfer agent, which is authorized to accept any
instructions relating to fund accounts. All purchase orders must be accepted by
the Distributor.
P.O. Box 419200 [american century logo]
Kansas City, Missouri American
64141-6200 Century(reg.sm)
1-800-345-2021 or 816-531-5575
SH-SPL-11261 9801
