AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
PROSPECTUS SUPPLEMENT
Value
Equity Income
Investor Class o Institutional Class o Advisor Class
SUPPLEMENT DATED JANUARY 15, 1998
Prospectus dated May 21, 1997
The following disclosure replaces the paragraph under the heading "Portfolio
Lending" found on page 12 of the Investor and Institutional Class Prospectuses
and page 14 of the Advisor Class Prospectus.
In order to realize additional income, a fund may lend its portfolio
securities. Such loans may not exceed one-third of the fund's net assets valued
at market except (i) through the purchase of debt securities in accordance with
its investment objective, policies and limitations, or (ii) by engaging in
repurchase agreements with respect to portfolio securities.
The following disclosure should be inserted after the section "When-Issued
Securities" found on page 12 of the Investor and Institutional Class
Prospectuses and page 14 of the Advisor Class Prospectus.
INVESTMENTS IN COMPANIES WITH LIMITED OPERATING HISTORY
The funds may invest in the securities of issuers with limited operating
history. The manager considers an issuer to have a limited operating history if
that issuer has a record of less than three years of continuous operation.
Investments in securities of issuers with limited operating history may
involve greater risks than investments in securities of more mature issuers. By
their nature, such issuers present limited operating history and financial
information upon which the manager may base its investment decision on behalf of
the funds. In addition, financial and other information regarding such issuers,
when available, may be incomplete or inaccurate.
Value and Equity Income will not invest more than 5% of their total assets
in the securities of issuers with less than a three-year operating history. The
manager will consider periods of capital formation, incubation, consolidation,
and research and development in determining whether a particular issuer has a
record of three years of continuous operation.
The following disclosure replaces the first paragraph under the heading "Short
Sales" found on page 12 of the Investor and Institutional Class Prospectuses and
page 14 of the Advisor Class Prospectus.
A fund may engage in short sales if, at the time of the short sale, the fund
owns or has the right to acquire securities equivalent in kind and amount to the
securities being sold short. Such transactions allow the fund to hedge against
price fluctuations by locking in a sale price for securities it does not wish to
sell immediately.
The following disclosure should be inserted as the second paragraph under the
heading "American Century Investments" on page 14 of the Investor and
Institutional Class Prospectuses and as the last paragraph under the heading
"How to Purchase and Sell American Century Funds" on page 16 of the Advisor
Class Prospectus.
To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will eliminate duplicate copies of most
financial reports and prospectuses to most households and deliver account
statements to most households in a single envelope, even if they have more than
one account. If additional copies of financial reports and prospectuses or
separate mailing of account statements is desired, please call us.
The following disclosure is added on page 21 of the Investor Class Prospectus,
page 20 of the Institutional Class Prospectus and page 18 of the Advisor Class
Prospectus, following the last paragraph under the heading "When Share Price is
Determined."
We have contractual relationships with certain financial intermediaries in
which such intermediaries represent that they have systems to track the time at
which investment orders are received and to segregate orders received at
different times. Based on these representations, the fund has authorized such
intermediaries and their designees to accept purchase and redemption orders on
the fund's behalf up to the applicable cut-off time. The fund will be deemed to
have received such orders upon acceptance by the duly authorized intermediary,
and such orders will be priced at the fund's net asset value next determined
after acceptance on the fund's behalf by such intermediary.
The second paragraph under the heading "Investment Management," found on page 23
of the Investor Class Prospectus, page 22 of the Institutional Class Prospectus,
and page 20 of the Advisor Class Prospectus is deleted.
The following disclosure is added on page 24 of the Investor Class Prospectus,
page 23 of the Institutional Class Prospectus and page 21 of the Advisor Class
Prospectus, following the last paragraph under the heading "Transfer and
Administrative Services."
Pursuant to a Sub-Administration Agreement with the manager, Funds
Distributor, Inc. (FDI) serves as the Co-Administrator for the funds. FDI is
responsible for (i) providing certain officers of the funds and (ii) reviewing
and filing marketing and sales literature on behalf of the funds. The fees and
expenses of FDI are paid by the manager.
The following disclosure replaces the first sentence under the heading
"Distribution of Fund Shares" found on page 25 of the Investor Class Prospectus
and page 24 of the Institutional Class Prospectus, and under the heading
"Distribution Fees" on page 21 of the Advisor Class Prospectus.
The funds' shares are distributed by FDI, a registered broker-dealer (the
Distributor). FDI is a wholly-owned indirect subsidiary of Boston Institutional
Group, Inc. FDI's principal business address is 60 State Street, Suite 1300,
Boston, Massachusetts 02109.
The following disclosure should be inserted as the last paragraph under the
heading "Distribution of Fund Shares" on page 25 of the Investor Class
Prospectus and page 24 of the Institutional Class Prospectus, and under the
heading "Distribution Fees" on page 21 of the Advisor Class Prospectus.
Investors may open accounts with American Century only through the
Distributor. All purchase transactions in the funds offered by this Prospectus
are processed by the transfer agent, which is authorized to accept any
instructions relating to fund accounts. All purchase orders must be accepted by
the Distributor.
P.O. Box 419200 [american century logo]
Kansas City, Missouri American
64141-6200 Century(reg.sm)
1-800-345-2021 or 816-531-5575
SH-SPL-11257 9801
<PAGE>
AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
PROSPECTUS SUPPLEMENT
American Century Real Estate Fund
Investor Class * Institutional Class * Advisor Class
SUPPLEMENT DATED JANUARY 15, 1998
Prospectus dated May 21, 1997 (revised June 16, 1997)
THE FOLLOWING DISCLOSURE REPLACES THE PARAGRAPH UNDER THE HEADING "PORTFOLIO
LENDING" FOUND ON PAGE 8 OF EACH PROSPECTUS.
In order to realize additional income, the fund may lend its portfolio
securities. Such loans may not exceed one-third of the fund's net assets valued
at market except (i) through the purchase of debt securities in accordance with
its investment objective, policies and limitations, or (ii) by engaging in
repurchase agreements with respect to portfolio securities.
THE FOLLOWING DISCLOSURE SHOULD BE INSERTED AFTER THE SECTION "REPURCHASE
AGREEMENTS" FOUND ON PAGE 9 OF THE INVESTOR CLASS, INSTITUTIONAL CLASS AND
ADVISOR CLASS PROSPECTUSES.
FUTURES AND OPTIONS
The fund may invest in financial futures contracts and options thereon. A
financial futures contract is an agreement to take or make delivery of a
financial asset or an amount of cash, as specified in the applicable contract,
at some time in the future. The value of the asset or cash to be delivered at
the end of the contract period is calculated based upon the difference in value
between the making of the contract and the end of the contract period of a
financial index, indicator, or security underlying the futures contract.
Rather than actually purchasing a financial asset (e.g., a long- or
short-term treasury security) or all of the securities contained in a specific
index (e.g., the S&P 500), the manager may choose to purchase a futures contract
which reflects the value of such securities or index. For example, an S&P 500
futures contract reflects the value of the underlying companies that comprise
the S&P 500 Composite Stock Price Index. If the aggregate market value of the
index securities increases or decreases during the contract period of an S&P 500
futures contract, the amount of cash to be paid to the contract holder at the
end of the period would correspondingly increase or decrease. As a result, the
manager is able to expose to the market cash that is held by the funds to meet
anticipated redemptions or for future investment opportunities. Because futures
contracts generally settle more quickly than their underlying securities, the
manager believes that the use of futures and options thereon allows the funds to
be fully invested while maintaining the needed liquidity.
The fund will not purchase leveraged futures. When a fund enters into a
futures contract, it must make a deposit of cash or high-quality debt
securities, known as "initial margin," as partial security for its performance
under the contract. As the value of the contract fluctuates, a party to the
contract may be required to make additional margin payments, known as "variation
margin," to cover a portion of such fluctuation. A fund will also deposit in a
segregated account with its custodian bank cash or high-quality debt securities
in an amount equal to the fund's payment obligation under the futures contract,
less any initial or variation margin. For options sold, a fund will segregate
cash of high-quality debt securities equal to the value of the securities
underlying the option unless the option is otherwise covered.
INVESTMENTS IN COMPANIES WITH LIMITED OPERATING HISTORY
The fund may invest in the securities of issuers with limited operating
history. The manager considers an issuer to have a limited operating history if
that issuer has a record of less than three years of continuous operation.
Investments in securities of issuers with limited operating history may
involve greater risks than investments in securities of more mature issuers. By
their nature, such issuers present limited operating history and financial
information upon which the manager may base its investment decision on behalf of
the fund. In addition, financial and other information regarding such issuers,
when available, may be incomplete or inaccurate.
Real Estate will not invest more than 5% of its total assets in the
securities of issuers with less than a three-year operating history. The manager
will consider periods of capital formation, incubation, consolidation, and
research and development in determining whether a particular issuer has a record
of three years of continuous operation.
THE FOLLOWING DISCLOSURE SHOULD BE INSERTED AS THE SECOND PARAGRAPH UNDER THE
HEADING "AMERICAN CENTURY INVESTMENTS" FOUND ON PAGE 11 OF THE INVESTOR AND
INSTITUTIONAL CLASS PROSPECTUSES AND AS THE LAST PARAGRAPH UNDER THE HEADING
"HOW TO PURCHASE AND SELL AMERICAN CENTURY FUNDS" FOUND ON PAGE 11 OF THE
ADVISOR CLASS PROSPECTUS.
To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will eliminate duplicate copies of most
financial reports and prospectuses to most households and deliver account
statements to most households in a single envelope, even if they have more than
one account. If additional copies of financial reports and prospectuses or
separate mailing of account statements is desired, please call us.
THE FOLLOWING DISCLOSURE IS ADDED ON PAGE 18 OF THE INVESTOR CLASS PROSPECTUS,
PAGE 17 OF THE INSTITUTIONAL CLASS PROSPECTUS AND PAGE 13 OF THE ADVISOR CLASS
PROSPECTUS, FOLLOWING THE LAST PARAGRAPH UNDER THE HEADING "WHEN SHARE PRICE IS
DETERMINED."
We have contractual relationships with certain financial intermediaries in
which such intermediaries represent that they have systems to track the time at
which investment orders are received and to segregate orders received at
different times. Based on these representations, the fund has authorized such
intermediaries and their designees to accept purchase and redemption orders on
the fund's behalf up to the applicable cut-off time. The fund will be deemed to
have received such orders upon acceptance by the duly authorized intermediary,
and such orders will be priced at the fund's net asset value next determined
after acceptance on the fund's behalf by such intermediary.
THE FOLLOWING DISCLOSURE IS ADDED ON PAGE 23 OF THE INVESTOR CLASS PROSPECTUS,
PAGE 22 OF THE INSTITUTIONAL CLASS PROSPECTUS AND PAGE 18 OF THE ADVISOR CLASS
PROSPECTUS, FOLLOWING THE LAST PARAGRAPH UNDER THE HEADING "TRANSFER AND
ADMINISTRATIVE SERVICES."
Pursuant to a Sub-Administration Agreement with the manager, Funds
Distributor, Inc. (FDI) serves as the Co-Administrator for the fund. FDI is
responsible for (i) providing certain officers of the fund and (ii) reviewing
and filing marketing and sales literature on behalf of the fund. The fees and
expenses of FDI are paid by the manager.
THE FOLLOWING DISCLOSURE REPLACES THE FIRST SENTENCE UNDER THE HEADING
"DISTRIBUTION OF FUND SHARES" FOUND ON PAGE 23 OF THE INVESTOR CLASS PROSPECTUS,
PAGE 22 OF THE INSTITUTIONAL CLASS PROSPECTUS AND PAGE 18 OF THE ADVISOR CLASS
PROSPECTUS.
The fund's shares are distributed by FDI, a registered broker-dealer (the
Distributor). FDI is a wholly-owned indirect subsidiary of Boston Institutional
Group, Inc. FDI's principal business address is 60 State Street, Suite 1300,
Boston, Massachusetts 02109.
THE FOLLOWING DISCLOSURE SHOULD BE INSERTED AS THE LAST PARAGRAPH UNDER THE
HEADING "DISTRIBUTION OF FUND SHARES" ON PAGE 23 OF THE INVESTOR CLASS
PROSPECTUS, PAGE 22 OF THE INSTITUTIONAL CLASS PROSPECTUS AND PAGE 18 OF THE
ADVISOR CLASS PROSPECTUS.
Investors may open accounts with American Century only through the
Distributor. All purchase transactions in the fund offered by this Prospectus
are processed by the transfer agent, which is authorized to accept any
instructions relating to fund accounts. All purchase orders must be accepted by
the Distributor.
P.O. Box 419200 [american century logo]
Kansas City, Missouri American
64141-6200 Century(reg.sm)
1-800-345-2021 or 816-531-5575
SH-SPL-11258 9801
