[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo(reg. sm)]
American
Century
Premium Capital Reserve Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 1999
INVESTOR CLASS
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.
PREMIUM CAPITAL RESERVE FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Premium Capital Reserve is a money market fund that seeks to earn the
highest level of current income while preserving the value of your
investment.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund earns its income by investing in high-quality, cash-equivalent
securities. These securities include short-term obligations of banks,
governments and corporations that are payable in U.S. dollars.
Additional information about Premium Capital Reserve'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?
* 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. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the fund.
* Because high-quality, cash-equivalent securities are among the safest
securities available, the interest they pay is among the lowest for
income-paying securities. Accordingly, the yield on this fund will likely be
lower than for funds that invest in longer-term or lower- quality
securities.
FUND PERFORMANCE
The following bar chart shows the actual performance of Premium Capital
Reserve's shares for each calendar year since the fund's inception on April
1, 1993. The bar chart indicates the volatility of the fund's historical
returns from year to year. The bar chart and the performance information
below are not intended to indicate how the fund will perform in the future
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 5.29%
1997 5.31%
1996 5.16%
1995 5.70%
1994 3.97%
(1) As of June 30, 1999, the end of the most recent calendar quarter,
Premium Capital Reserve's year-to-date return was 2.30%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
Premium Capital
Reserve 1.43% (2Q 1995) 0.72% (1Q 1994)
The following table shows the average annual return of the fund's shares for
the periods indicated. The 90-Day Treasury Bill Index, an unmanaged index
that reflects no operating costs, is included as a benchmark for performance
comparisons. It is derived from secondary market interest rates as published
by the Federal Reserve Bank. For current performance information, including
yields, please call us or access our Web site.
1 YEAR 5 YEARS LIFE OF FUND(1)
------ ------- ---------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1999)
---------------------------------------------------------
Premium Capital Reserve 4.97% 5.23% 4.77%
90-Day Treasury Bill Index 4.58% 5.11% 4.75%
(1) The inception date for Premium Capital Reserve is April 1, 1993.
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 fund
* to redeem your shares
Premium Capital Reserve American Century Investments
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 0.45%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 0.45%
(1 )Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel and interest, were less than
0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
------ ------- ------- --------
$46 $144 $252 $566
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. Identified below is the portfolio
manager for the Premium Capital Reserve team:
JOHN F. WALSH, Portfolio Manager, has been a member of the team that manages
Premium Capital Reserve since May 1997. He joined American Century in
February 1996 as an Investment Analyst, a position he held until May 1997.
At that time he was promoted to Portfolio Manager. Prior to joining American
Century, Mr. Walsh served as an Assistant Vice President and Analyst at
First Interstate Bank, Los Angeles, California. He has a bachelor's degree
in marketing from Loyola Marymount and an MBA in finance from Creighton
University.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return the enclosed application along with an investment
check payable to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $100,000. If your redemption
activity causes the value of your account to fall 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 Premium Capital Reserve
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.
Premium Capital Reserve Fund Profile
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Dividends are declared and available for redemption daily. They will be paid
monthly on the last Friday of each month. Because the fund is a money market
fund, its distributions generally will be taxed as ordinary income. If the
fund's share price were to go up or down, its distributions also could
include capital gains or losses. 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or 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.
- --------------------------------------------------------------------------------
[american century logo (reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-16977 9907 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo (reg.sm)]
American
Century
Premium Government Reserve Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 1999
INVESTOR CLASS
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.
PREMIUM GOVERNMENT RESERVE FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Premium Government Reserve is a money market fund that seeks to earn the
highest level of current income while preserving the value of your
investment.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund earns its income by investing in very short-term U.S. government
securities. These securities may include direct obligations of the United
States, such as Treasury bills, notes and bonds. They may also include
obligations, such as mortgage-related securities, issued or guaranteed by
agencies and instrumentalities of the U.S. government.
Additional information about Premium Government Reserve'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?
* 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. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the fund.
* Because very short-term U.S. government securities are among the safest
securities available, the interest they pay is among the lowest for
income-paying securities. Accordingly, the yield on this fund will likely be
lower than for funds that invest in longer-term or lower-quality securities.
FUND PERFORMANCE
The following bar chart shows the actual performance of Premium Government
Reserve's shares for each calendar year since the fund's inception on April
1, 1993. The bar chart indicates the volatility of the fund's historical
returns from year to year. The bar chart and the performance information
below are not intended to indicate how the fund will perform in the future.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 5.15%
1997 5.20%
1996 5.10%
1995 5.63%
1994 3.90%
(1) As of June 30, 1999, the end of the most recent calendar quarter,
Premium Government Reserve's year-to-date return was 2.23%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
Premium Government
Reserve 1.42% (2Q 1995) 0.69% (1Q 1994)
The following table shows the average annual return of the fund's shares for
the periods indicated. The 90-Day Treasury Bill Index, an unmanaged index
that reflects no operating costs, is included as a benchmark for performance
comparisons. The index is derived from secondary market interest rates as
published by the Federal Reserve Bank. For current performance information,
including yields, please call us or access our Web site.
1 YEAR 5 YEARS LIFE OF FUND(1)
------ ------- ---------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1999)
---------------------------------------------------------
Premium Government Reserve 4.80% 5.13% 4.68%
90-Day Treasury Bill Index 4.58% 5.11% 4.75%
(1) The inception date for Premium Government Reserve is April 1, 1993.
Premium Government Reserve American Century Investments
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 fund
* 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 0.45%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 0.45%
(1) Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel and interest, were less than
0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
------ ------- ------- --------
$46 $144 $252 $566
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. Identified below are the portfolio
managers for the Premium Government Reserve team:
BETH BUNNELL HUNTER, Portfolio Manager, has been a member of the team that
manages Premium Government Reserve since joining American Century in July
1999. Before joining American Century, she worked for Calvert Asset
Management Company as a Portfolio Trading Analyst from 1994 to 1996 and as a
Portfolio Manager from 1996 to June 1999. She has a bachelor of arts from
the University of Washington-Seattle.
DENISE TABACCO, Portfolio Manager, has been a member of the Premium
Government Reserve team since November 1995. She joined American Century in
1988, becoming a member of its portfolio department in 1991. She was
promoted to Portfolio Manager in 1995. She has a bachelor's degree in
accounting from San Diego State University and an MBA in finance from Golden
Gate University.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return the enclosed application along with an investment
check payable to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $100,000. If your redemption
activity causes the value of your account to fall below this account
minimum, your shares may be redeemed involuntarily.
Premium Government Reserve Fund Profile
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 Premium Government
Reserve 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?
Dividends are declared and available for redemption daily. They will be paid
monthly on the last Friday of each month. Because the fund is a money market
fund, its distributions generally will be taxed as ordinary income. If the
fund's share price were to go up or down, its distributions also could
include capital gains or losses. 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or 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.
- --------------------------------------------------------------------------------
[american century logo (reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-16975 9907 Funds Distributor, Inc.
<PAGE>
[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo (reg.sm)]
American
Century
Premium Bond Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
July 26, 1999
INVESTOR CLASS
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.
PREMIUM BOND FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Premium Bond seeks a high level of income by investing primarily in
non-money market debt securities.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers invest primarily in high- and medium-grade, non-money
market debt securities. These securities, which may be payable in U.S. or
foreign currencies, may include corporate bonds and notes, government
securities and securities backed by mortgages or other assets. Shorter-term
debt securities round out the portfolio.
The fund managers primarily invest in quality debt securities, that is,
securities rated in the four highest categories by independent rating
organizations. However, the fund managers may invest up to 15% of the fund's
assets in fifth-category-rated securities. The fund managers also may invest
in unrated securities if the fund managers determine that they are of
equivalent credit quality.
Three basic principles of fixed-income investing impact the fund's
management.
* Bond prices generally move in the opposite direction of interest rates.
* The longer the maturity of a debt security, the higher its yield, but the
greater its price volatility and risk.
* The lower the credit quality of a debt security, the higher its yield, but
the greater its price volatility and risk.
In light of these principles, the fund managers pay close attention to the
interest rate sensitivity and credit quality of the fund's portfolio.
Weighted average maturity is one of the tools they use to gauge how much the
value of the fund will change if interest rates change. The higher the
weighted average maturity number, the more the value of the fund will change
if interest rates change. The weighted average maturity of the fund's
portfolio must be three and one-half years or longer. During periods of
rising interest rates, the fund managers may adopt a shorter portfolio
maturity in order to reduce the effect of bond price declines on the fund's
value. When interest rates are falling and bond prices are rising, they may
adopt a longer portfolio maturity.
Additional information about Premium 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. This interest rate risk is
higher for Premium Bond than for funds that have shorter weighted average
maturities, such as money market and short-term bond funds.
* The lowest rated bonds in which the fund may invest, BBB- and BB-rated
bonds, contain some speculative characteristics. Having these bonds in the
fund's portfolio means the fund's value may go down more if interest rates
or other economic conditions change than if the fund contained only
higher-rated bonds.
* The fund may invest in debt securities backed by mortgages or assets such
as credit card receivables. These underlying obligations may be prepaid, as
when a homeowner refinances a mortgage to take advantage of declining
interest rates. If so, the fund must reinvest prepayments at current rates,
which may be less than the rate of the prepaid mortgage. Because of this
prepayment risk, the fund may benefit less from declining interest rates
than funds of similar maturity that invest less heavily in mortgage- and
asset-backed securities.
* The fund's share value will fluctuate. In general, the funds that have
higher potential income have higher potential loss. 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.
In summary, Premium Bond is designed for investors who want a bond fund with
the potential for a higher level of income than is generally provided by
money market or short-term bond funds. Investors in the fund must be
prepared, however, to weather the generally greater price volatility
associated with the longer-term debt securities that the fund buys.
Premium Bond American Century Investments
FUND PERFORMANCE
The following bar chart shows the actual performance of Premium Bond's
shares for each calendar year since the fund's inception on April 1, 1993.
The bar chart indicates the volatility of the fund's historical returns from
year to year. The bar chart and the performance information below are not
intended to indicate how the fund will perform in the future.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 7.85%
1997 8.85%
1996 2.73%
1995 20.10%
1994 -4.10%
(1) As of June 30, 1999, the end of the most recent calendar quarter,
Premium Bond's year-to-date return was -1.58%.
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
------- ------
Premium Bond 6.82% (2Q 1995) -3.47% (1Q 1994)
The following table shows the average annual return of the fund's shares for
the periods indicated. The Lehman Aggregate Bond Index, an unmanaged index
that reflects no operating costs, is included as a benchmark for performance
comparisons. It consists of the Lehman Government/Corporate Index and the
Lehman Mortgage-Backed Securities Index and reflects the price fluctuations
of Treasury securities, U.S. government agency securities, corporate bond
issues and mortgage-backed securities. For current performance information,
including yields, please call us or access our Web site.
1 YEAR 5 YEARS LIFE OF FUND(1)
------ ------- ---------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 1999)
---------------------------------------------------------
Premium Bond 2.34% 7.50% 5.88%
Lehman Aggregate
Bond Index 3.15% 7.83% 6.44%
(1) The inception date for Premium Bond is April 1, 1993.
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 fund
* 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 0.45%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 0.45%
(1) Other expenses, which include the fees and expenses of the fund's
independent directors, their legal counsel and interest, were less than
0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
------ ------- ------- --------
$46 $144 $252 $566
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. Identified on the following page is the
portfolio manager for the Premium Bond team:
Premium Bond Fund Profile
JEFFREY L. HOUSTON, Vice President and Portfolio Manager, has been a member
of the Premium Bond team since June 1995. He joined American Century in 1990
as an Investment Analyst and was promoted in 1994 to Portfolio Manager. He
has a bachelor of arts from the University of Delaware and an MPA from
Syracuse University. He is a Chartered Financial Analyst.
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return the enclosed application along with an investment
check payable to American Century Investments
* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $100,000. If your redemption
activity causes the value of your account to fall 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 Premium 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.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Dividends of net income are declared and available for redemption daily.
They will be paid monthly on the last Friday of each month. Premium Bond
pays distributions of realized capital gains, if any, 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or 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.
- --------------------------------------------------------------------------------
[american century logo (reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX
816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
BUSINESS, NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-353
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-16976 9907 Funds Distributor, Inc.
