FUND PROFILE
International Bond
INVESTOR CLASS
January 31, 1999
[american century logo(reg.sm)]
American
Century
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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.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
INTERNATIONAL BOND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
International Bond seeks high total return.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund buys high-quality, nondollar-denominated foreign government and
foreign corporate debt securities.
All of the investments must satisfy the credit quality standards (i.e.
"AA" or higher) established by the Trustees of the fund.
The subadvisor selects the fund's investments by using a combination of
fundamental research, and bond and currency valuation models.
*Economic/Political Fundamentals. The subadvisor evaluates each country's
economic climate and political discipline for controlling deficits and
inflation.
* Expected Return. Using economic forecasts, the subadvisor projects the
expected return for each country.
*Relative Value. By contrasting expected risks and returns for investments
in each country, the subadvisor selects those countries expected to produce
the best return at reasonable risk.
Normally, the fund will only purchase bonds denominated in foreign
currencies. Some international funds attempt to minimize currency risks by
using hedging strategies; this is sometimes called hedging "back to the
dollar." The fund will not normally hedge back to the dollar.
The weighted average maturity of the fund is expected to be between two
and 10 years.
Additional information about International Bond'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?
*When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk
for International Bond is higher than for funds that have shorter weighted
average maturities, such as short-term and limited-term funds.
*As with all funds, at any given time the value of your shares of
International Bond 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 Bond invests primarily in foreign securities, which 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 Bond 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. This 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 BOND 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 procedures that make it
difficult for the fund to buy and sell securities. These factors could
result in a loss to the fund.
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 Bond 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
Bond's Investor Class shares for each calendar year since the fund's
inception on January 7, 1992. 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
1993 1994 1995 1996 1997 1998
International Bond 11.79 1.52 24.40 6.38 -5.88 17.87
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 Bond 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 3/31/95 13.84%
Quarter Ended 3/31/97 -6.79%
The following table shows the average annual returns of the fund's
Investor Class shares for the periods indicated. The J.P. Morgan Global
Traded Government Bond Index (excluding the United States and with Japan
weighted at 15%), an unmanaged index that reflects no operating costs, is
included as a benchmark for performance comparisons.
1 YEAR 5 YEARS LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
International Bond 17.87% 8.37% 8.65%
J.P. Morgan Global Traded
Government Bond Index 18.49% 9.61% 8.52%
(index as of 12/31/91)
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 may pay if you buy and hold shares of the fund.
FUND PROFILE INTERNATIONAL BOND
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.84%(1)
Distribution and Service (12b-1) Fees None
Other Expenses(2) 0.03%
Total Annual Fund Operating Expenses 0.87%
(1)Based on expenses incurred during the fund's most recent fiscal year.
The fund has a stepped fee schedule. As a result, the fund's management
fee generally decreases as fund assets increase.
(2)Other expenses include the fees and expenses of the fund's
independent trustees, their legal counsel, interest and extraordinary
expenses.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn 5% return each year
* incur the same operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
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$89 $277 $481 $1,069
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, SUBADVISOR 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. J.P. Morgan Investment Management Inc.
(JPMIM) is the fund's subadvisor and is responsible for its day-to-day
operations. JPMIM is headquartered in New York and maintains offices in
most of the world's financial centers, including London and Frankfurt. The
portfolio managers on the International Bond team are identified as
follows:
DAVID SCHROEDER, Vice President and Senior Portfolio Manager, supervises
the American Century International Bond Funds team. He has been a member of
the International Bond team since June 1997. Mr. Schroeder joined American
Century in July 1990 as a portfolio manager.
DETLER SCHLICHTER, Vice President, JPMIM, is a fixed income Senior
Portfolio Manager. He joined J.P. Morgan & Co., Frankfurt, in 1990 and has
worked at JPMIM London as a Portfolio Manager since April 1996. Mr.
Schlichter has a bachelor's degree and Masters degree from the University
of Bochum.
DOMINIC PEGLER, Vice President, JPMIM, is a fixed income Portfolio
Manager. He joined JPMIM London in 1996 after seven years at the Bank of
England, serving as an economist and in the Reserves Management Department,
managing the UK's foreign exchange reserves. He has a bachelor's degree and
Masters degree in economics from the London School of Economics.
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 $5,000 ($1,000 for traditional
IRA and Roth IRAs). 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
Bond 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.
INTERNATIONAL BOND AMERICAN CENTURY INVESTMENTS
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
International Bond pays distributions of substantially all of its income
quarterly, although it may elect to not pay a distribution in a given
quarter. Distributions from realized capital gains are paid 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. 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 a Service Representative at 1-800-345-3533.
FUND PROFILE INTERNATIONAL BOND
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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
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
Funds Distributor, Inc.
SH-PRF-14144 9901
