FUND PROFILE
International Growth
INVESTOR CLASS
January 15, 1999
[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 managers look for securities of international companies that
they believe will increase in value over time. The fund managers use a
growth investment strategy developed by American Century that looks for
companies with earnings and revenue growth. Ideally, the fund managers look
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 or
faster this year than the year before.
The fund 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
fund 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 fiscal
period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING INTERNATIONAL GROWTH 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 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
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, and it is not insured
or guaranteed by the Federal Deposit Insurance Corporation (FDIC) 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.
INTERNATIONAL GROWTH AMERICAN CENTURY INVESTMENTS
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 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 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
1998 1997 1996 1995 1994 1993 1992
International Growth 19.01 19.72 14.43 11.89 -4.76 42.65 4.84
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the period reflected by the preceding bar chart 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
performance comparisons.
1 5 LIFE OF
YEAR YEARS FUND
---------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
---------------------------------------------------------------------
International Growth 19.01% 11.68% 14.74%
MSCI EAFE Index 20.00% 9.19% 8.44%
(index as of 5/31/91)
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 will pay if you buy and hold shares of the fund.
FUND PROFILE INTERNATIONAL GROWTH
---------------------------------------------------------------------
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 as of November 30, 1998. The fund has a stepped fee
schedule. As a result, the fund's management fee generally 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
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 identified below:
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 and was promoted
to Portfolio Manager in April 1994. He has a bachelor's degree in business
from the University of Washington.
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 at Federated Investors, Inc.
from June 1995 to March 1997. Prior to 1995, he served as Vice President
and Portfolio Manager of American Century. He has a bachelor's degree in
business administration from the University of Illinois.
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 once a year, usually in 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. 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
CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
SH-PRF-14840 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
International
Discovery
INVESTOR CLASS
January 15, 1999
[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 $1.5 billion or will have less than
$500 million in freely tradable securities.
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 fund managers use a
growth investment strategy developed by American Century that looks for
companies with earnings and revenue growth. Ideally, the fund managers look
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 or
faster this year than the year before.
The fund 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
fund 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 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 International Discovery'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.
* 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, and it is not insured
or guaranteed by the Federal Deposit Insurance Corporation (FDIC) 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 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
1998 1997 1996 1995
International Discovery 17.86 17.48 31.18 9.89
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the period reflected by the preceding bar chart 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 9/30/93 -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
performance comparisons.
1 LIFE OF
YEAR FUND
---------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
---------------------------------------------------------------------
International Discovery 17.86% 17.49%
MSCI EAFE Index 20.00% 8.91%
(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 tables describe the
fees and expenses that you may pay if you buy and hold shares of the fund.
----------------------------------------------------------
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
----------------------------------------------------------
Redemption Fee
Shares held less than 180 days 2.0%(1)
Shares held for 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 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, 1998. The fund has a stepped fee
schedule. As a result, the fund's management fee generally 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
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 identified below:
HENRIK STRABO, Senior Vice President and Portfolio Manager, has been a
member of the team that manages International Discovery since its inception
in April 1994. He joined American Century in 1993 as an Investment Analyst
and was promoted to Portfolio Manager in April 1994. He has a bachelor's
degree in business from the University of Washington.
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. He has a bachelor's degree in
business administration from the University of Illinois.
BRIAN BRADY, Portfolio Manager, has been a member of the team that
manages International Discovery since November 1998. He joined American
Century in June 1994 as an Investment Analyst and was promoted to Portfolio
Manager in November 1998. Prior to joining American Century, he served as a
Financial Analyst for Chase Manhattan Bank. He has a bachelor's degree in
finance from Georgetown University and an MBA from Columbia University
Graduate School of Business.
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.
INTERNATIONAL DISCOVERY 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 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 once a year, usually in 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. 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.
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
CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES 1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
SH-PRF-14841 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Emerging Markets
INVESTOR CLASS
January 15, 1999
[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 managers look for securities of emerging market companies that
they believe will increase in value over time. The fund managers use a
growth investment strategy developed by American Century that looks for
companies with earnings and revenue growth. Ideally, the fund managers look
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 or
faster this year than the year before.
The fund 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
fund 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 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 Emerging Markets' 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
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, and it is not insured
or guaranteed by the Federal Deposit Insurance Corporation (FDIC) 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 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.
Emerging Markets 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, 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 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 Emerging
Markets' Investor Class shares for each calendar year since the fund's
inception on September 30, 1997. 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
1998
Emerging Markets -18.90%
The highest and lowest returns of the fund's Investor Class shares for a
calendar quarter during the period reflected by the preceding bar chart are
provided in the following chart to indicate the fund's historical
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 12/31/98 15.31%
Quarter Ended 9/30/98 -24.62%
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Morgan Stanley Capital
International Emerging Markets Free Index, an unmanaged index that reflects
no operating costs, is included as a benchmark for performance comparisons
1 LIFE OF
YEAR FUND
---------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
---------------------------------------------------------------------
Emerging Markets -18.90% -26.68%
MSCI Emerging Markets
Free Index -25.34% -32.15%
Fund Profile Emerging Markets
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 will 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, 1998. The fund has a stepped fee
schedule. As a result, the fund's management fee generally 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
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 identified below:
MARK S. KOPINSKI, Vice President and Portfolio Manager, has been a
member of the team that manages Emerging Markets since its inception in
September 1997. He rejoined 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. He has a bachelor's degree in business administration from the
University of Illinois.
MICHAEL J. DONNELLY, Vice President and Portfolio Manager, has been a
member of the team that manages Emerging Markets since its inception in
September 1997. He joined American Century in August 1997. From 1993 to
1997, he served as Vice President and Portfolio Manager for Federated
Investors, Inc. He has a bachelor of arts from Yale University and an MBA
in management, international business and international finance from
Kellogg Graduate School of Management, Northwestern University. He is a
Chartered Financial Analyst.
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.
Emerging Markets 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 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
once a year, usually in 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. 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.
Fund Profile Emerging Markets
- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
SH-PRF-14842 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Global Growth
INVESTOR CLASS
January 15, 1999
[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
GLOBAL GROWTH
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Global Growth seeks capital growth by investing primarily in U.S. and
foreign equity securities of issuers in developed countries.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for securities of both U.S. and international
companies that they believe will increase in value over time. The fund
managers use a growth investment strategy developed by American Century
that looks for companies with earnings and revenue growth. Ideally, the
fund managers look 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 or faster this year than the year before.
The fund 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.
Global Growth will have at least 65% of its assets invested at all times
in equity securities of issuers in developed countries. The fund considers
developed countries to include the United States, Canada, Japan, the United
Kingdom, Germany, Austria, France, Italy, Ireland, Spain, Belgium, the
Netherlands, Switzerland, Sweden, Finland, Norway, Denmark, Australia and
New Zealand. The fund may also invest in securities of issuers in
developing countries where the fund managers believe they present an
attractive investment opportunity for the fund.
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
fund 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.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING
IN THE FUND?
* The value of Global 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.
* As with all funds, at any given time the value of your shares of
Global 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.
* Global Growth may invest a significant portion of its assets in
foreign securities, which generally involve 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 Growth is determined in U.S. dollars. The fund's foreign
investments, however, generally are held in the foreign currency of the
countries 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.
GLOBAL GROWTH AMERICAN CENTURY INVESTMENTS
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 losses 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. Also, the information which is available could be
less reliable than information regarding U.S. issuers.
In summary, Global Growth is intended for investors who find U.S. and
foreign growth 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 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 will pay if you buy and hold shares of the fund.
----------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
----------------------------------------------------------
Management Fee 1.30%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.00%
Total Annual Fund Operating Expenses 1.30%(1)
(1)The fund has a stepped fee schedule. As a result, the fund's
management fee generally decreases as fund assets increase.
(2)Other expenses include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses.
EXAMPLE
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
$132 $410
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 Global
Growth team are identified below:
HENRIK STRABO, Senior Vice President and Portfolio Manager, has been a
member of the team that manages Global Growth since its inception in
December 1998. He joined American Century in 1993 as an Investment Analyst
and was promoted to Portfolio Manager in April 1994. He has a bachelor's
degree in business from the University of Washington.
BRADLEY AMOILS, Portfolio Manager, has been a member of the team that
manages Global Growth since its inception in December 1998. He joined
American Century in July 1997 as an Investment Analyst and was promoted to
Portfolio Manager in November 1998. Prior to joining American Century, he
served as a Securities Analyst for Oppenheimer Funds from January 1996 to
June 1997 and an Analyst at Clay Finlay Asset Management from March 1995 to
December 1995. He has a bachelor of science and doctorate of medicine from
the University of Witwatersrand, Johannesburg, South Africa and an MBA from
Columbia University Graduate School of Business.
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
FUND PROFILE GLOBAL GROWTH
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?
Global Growth pays distributions of substantially all of its income once
a year, usually in 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. 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.
- --------------------------------------------------------------------------------
[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
CORPORATE; NOT-FOR-PROFIT; FOUNDATIONS;
ENDOWMENTS; KEOGH; SEP-, SARSEP- AND
SIMPLE-IRA; AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
SH-PRF-14843 9901 Funds Distributor, Inc.
