FUND PROFILE
Premium Bond
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.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
PREMIUM BOND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Premium Bond seeks a high level of income from investments in
longer-term bonds and other debt instruments.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers invest in a variety of high- and medium-grade debt
securities payable in both U.S. and foreign currencies. Generally, bonds
make up at least 65% of the fund's assets, and shorter-term debt securities
round out the portfolio.
The fund managers primarily invest in investment-grade securities, that
is, securities rated in the four highest categories by independent rating
organizations. However, the fund managers may invest up to 15% of their
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's managers pay close attention to
the interest rate sensitivity and credit quality of the fund's portfolio.
Adjusted duration 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 adjusted
duration number, the more the value of the fund will change if interest
rates change. The weighted average adjusted duration of the fund's
portfolio must be 3.5 years or greater. During periods of rising interest
rates, the fund's managers may adopt a shorter portfolio duration 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 duration.
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 amount of income the fund generates
will be affected. Generally, when interest rates rise, the fund's
income and its 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 adjusted
durations, 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.
* As with all funds, at any given time, the value of your shares of
Premium 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.
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 bonds 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. 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 7.85%
1997 8.85%
1996 2.73%
1995 20.10%
1994 -4.10%
The highest and lowest returns of the fund's 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 Premium 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 6/30/95 6.82%
Quarter Ended 3/31/94 -3.47%
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.
1 YEAR 5 YEARS LIFE OF FUND
-------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
-------------------------------------------------------------------------
Premium Bond 7.85% 6.79% 6.70%
Lehman Aggregate Bond Index 8.69% 7.72% 7.72%
For current performance information, including yields, please call us or access
our Web site.
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 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, 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
$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. The portfolio managers on the Premium
Bond team are identified below:
NORMAN E. HOOPS, Senior Vice President and Portfolio Manager, has been a
member of the team that manages Premium Bond since its inception in April
1993. He joined American Century as Vice President and Portfolio Manager in
November 1989. In April 1993, he became Senior Vice President. He has a
bachelor of arts from Indiana University and an MBA from Butler University
FUND PROFILE PREMIUM BOND
JEFFREY L. HOUSTON, Portfolio Manager, has been a member of the team
that manages Premium Bond 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
MBA from Syracruse 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 $100,000. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in 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 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-14844 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Premium Capital Reserve
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.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
PREMIUM CAPITAL RESERVE
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 are 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 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. 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 5.29%
1997 5.31%
1996 5.16%
1995 5.70%
1994 3.97%
The highest and lowest returns of the fund's 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.
[bar chart]
-------------------------------------------------------------------------
HIGHEST AND LOWEST QUARTERLY RETURNS
-------------------------------------------------------------------------
Quarter Ended 6/30/95 1.43%
Quarter Ended 3/31/94 0.72%
PREMIUM CAPITAL RESERVE AMERICAN CENTURY INVESTMENTS
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.
1 YEAR 5 YEARS LIFE OF FUND
-------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
-------------------------------------------------------------------------
Premium Capital Reserve 5.29% 5.09% 4.78%
90 Day Treasury Bill Index 4.50% 4.95% 4.70%
For current performance information, including yields, please call us or
access our Web site.
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 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, 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
$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. The portfolio managers on the Premium
Capital Reserve team are identified below:
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.
DENISE TABACCO, Portfolio Manager, has been a member of the team that
manages Premium Capital Reserve since November 1996. She joined American
Century in 1988, becoming a member of its portfolio department in 1991. In
1995 she assumed her current position as a Portfolio Manager. She has a
bachelor's degree in accounting from San Diego State University and an MBA
degree in finance from Golden Gate University
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 $100,000. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in 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.
FUND PROFILE PREMIUM CAPITAL RESERVE
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Dividends are declared and available for redemption daily. 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
annual 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 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-14845 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Premium Government Reserve
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.
BENHAM GROUP
AMERICAN CENTURY INVESTMENTS
PREMIUM GOVERNMENT RESERVE
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 are short-term obligations of the
U.S. government, its agencies and instrumentalities.
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 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. 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 5.15%
1997 5.20%
1996 5.10%
1995 5.63%
1994 3.90%
The highest and lowest returns of the fund's 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.
[bar chart]
-------------------------------------------------------------------------
HIGHEST AND LOWEST QUARTERLY RETURNS
-------------------------------------------------------------------------
Quarter Ended 6/30/95 1.42%
Quarter Ended 3/31/94 -0.69%
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.
PREMIUM GOVERNMENT RESERVE AMERICAN CENTURY INVESTMENTS
1 YEAR 5 YEARS LIFE OF FUND
-------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
-------------------------------------------------------------------------
Premium Government Reserve 5.15% 4.99% 4.69%
90-Day Treasury Bill Index 4.50% 4.95% 4.70%
For current performance information, including yields, please call us or
access our Web site.
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 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, 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
$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. The portfolio managers on the Premium
Government Reserve team are identified below:
AMY O'DONNELL, Portfolio Manager, has been a member of the team that
manages Premium Government Reserve since April 1997. She joined American
Century in 1987, becoming a member of its portfolio department in 1988. In
1992 she assumed her current position as a Portfolio Manager. She has a
bachelor's degree in business administration and an MBA in finance from
California State University - Hayward.
DENISE TABACCO, Portfolio Manager, has been a member of the team that
manages Premium Government Reserve since November 1996. She joined American
Century in 1988, becoming a member of its portfolio department in 1991. In
1995 she assumed her current position as a Portfolio Manager. 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?
* 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 $100,000. If the value of your
account falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares in 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.
FUND PROFILE PREMIUM GOVERNMENT RESERVE
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Dividends are declared and available for redemption daily. 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
annual 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 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-14846 9901 Funds Distributor, Inc.
