AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.
SUPPLEMENT TO AMERICAN CENTURY REAL ESTATE FUND PROSPECTUS
INVESTOR CLASS * INSTITUTIONAL CLASS * ADVISOR CLASS
SUPPLEMENT DATED MAY 20, 1998
PROSPECTUS DATED FEBRUARY 17, 1998
The following disclosure is added after the third paragraph under the
heading "Investment Management," found on page 22 of the Investor Class
prospectus, page 17 of the Advisor Class prospectus and page 22 of the
Institutional Class prospectus:
At a Special Meeting of Shareholders held on May 20, 1998, the shareholders
of the fund approved the new subadvisory agreement. At the meeting, the
shareholders also elected the directors of the fund, and ratified the fund's
independent auditors.
The following disclosure is added to the prospectus of each class as a new
subsection immediately following "Transfer and Administrative Services."
YEAR 2000 ISSUES
Many of the world's computer systems currently cannot properly recognize or
process date-sensitive information relating to the Year 2000 and beyond. The
fund depends upon the computer systems of various service providers, including
the transfer agent, for its day-to-day operations. Inadequate remediation of the
Year 2000 problem by these service providers and others with whom they interact
could have an adverse effect on the fund's operations, including pricing,
securities trading and settlement, and the provision of shareholder services.
The transfer agent has assembled a team of information technology
professionals who are taking steps to address Year 2000 issues with respect to
its own computers and to obtain satisfactory assurances that comparable steps
are being taken by the fund's other major service providers and vendors. The key
phases of the remediation plan include: an inventory of all internal systems,
vendor products and services and data providers (substantially completed in
1997); an assessment of all systems for date reliance and the impact of the
century rollover on each (substantially completed with respect to critical
systems in early 1998); and the renovation and testing of affected systems
(targeted for completion with respect to critical systems by the end of 1998).
The manager will pay for the remediation effort with revenues from its
management fee, so that the fund will not directly bear any of the cost.
In light of these remediation efforts, the fund does not anticipate a
material adverse impact on its business, operations or financial condition
relating to Year 2000 issues. However, there can be no assurance that the
remediation plan will be sufficient and timely or that interaction with other
noncomplying computer systems will not have a material adverse effect on the
fund's business, operations or financial condition.
In addition, companies in which the fund invests may have Year 2000 computer
problems. The value of their securities could go down if they do not fix their
problems in time or if fixing them is very expensive. Before making an
investment decision about a company, the manager asks it about its Year 2000
readiness. However, the manager cannot be sure that the information it receives
is complete and accurate, and there is no guarantee that portfolio companies'
Year 2000 problems will not hurt the fund's performance.
[american century logo(reg.sm)]
American
Century(reg.tm)
P.O. Box 419200
Kansas City, Missouri
64141-6200
1-800-345-2021 or 816-531-5575
SH-SPL-12565 9805
