FUND PROFILE
Value
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.
AMERICAN CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
VALUE
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Value seeks long-term capital growth by investing primarily in common
stocks. Income is a secondary objective.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for stocks of medium to large companies that they
believe are undervalued at the time of purchase. The fund managers use a
value investment strategy that looks for companies that are temporarily out
of favor in the market. The fund managers attempt to purchase the stock of
these undervalued companies and hold them until they have returned to favor
in the market and their stock prices have gone up. Companies may be
undervalued due to market declines, poor economic conditions, actual or
anticipated bad news regarding the issuer or its industry, or because they
have been overlooked by the market. To identify these companies, the fund
managers look for companies whose earnings, cash flows and/or assets may
not be reflected accurately in the companies' stock prices, or companies
whose dividend payments appear high when compared to the stock prices.
Although Value will invest primarily in equity securities, it also may
invest up to 35% of its assets in other types of securities consistent with
the accomplishment of its objective of capital growth. When the fund
managers believe that it is prudent, they also may invest assets in
non-leveraged futures and options. "Non-leveraged" means that the fund may
not invest in futures and options where it would be possible to lose more
than the fund invested. Futures and options can help the fund's cash assets
remain liquid while performing more like stocks.
Additional information about Value'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?
* As with all funds, at any given time the value of your shares of the
fund 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.
* The value of the fund's shares depends on the value of the stocks and
other securities it owns. The value of the individual securities Value
owns will go up and down depending on the performance of the companies
that issued them, general market and economic conditions, and investor
confidence.
* If the market does not consider the individual stocks purchased by
Value to be undervalued, the value of the fund's shares may not rise
as high as other funds and may in fact decline, even if stock prices
are generally increasing.
* Market performance tends to be cyclical and, in the various cycles,
certain investment styles may fall in and out of favor. If the market
is not favoring the fund's style, the fund's gains may not be as big
as, or its losses may be bigger than, other equity funds using
different investment styles.
In summary, Value is intended for investors who seek long-term capital
growth through an equity fund utilizing the value style of investing and
who are willing to accept the risks associated with that investment
strategy.
FUND PERFORMANCE
The following bar chart shows the actual performance of Value's Investor
Class shares for each calendar year since the fund's inception on September
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 1997 1996 1995 1994
Value 4.99 26.01 24.25 32.80 3.99%
Value American Century Investments
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 Value 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 6/30/97 12.87%
Quarter Ended 9/30/98 -10.85%
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The S&P/Barra Value Index,
an unmanaged index that reflects no operating costs, is included as a
benchmark for performance comparisons.
1 5 LIFE OF
YEAR YEARS FUND
---------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
---------------------------------------------------------------------
Value 4.99% 17.82% 17.28%
S&P/Barra Value Index 14.68% 19.88% 18.61%
(index as of 8/31/93)
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 1.00%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 1.00%
(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
$102 $318 $551 $1,219
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 MANAGER?
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 manager on the Value
team is identified below:
PHILLIP N. DAVIDSON, Vice President and Portfolio Manager, has been a
member of the team that manages Value since joining American Century in
September 1993. He has a bachelor's degree in finance and an MBA from
Illinois State 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 $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
Fund Profile Value
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 Value 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?
Value pays distributions of substantially all of its income and realized
capital gains 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-14829 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Equity Income
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.
AMERICAN CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
EQUITY INCOME
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Equity Income seeks to provide current income. Capital appreciation is a
secondary objective.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for stocks with a favorable dividend- paying
history that show the prospect for continuing and/or increasing dividend
payments. Secondarily, the fund managers look for the possibility that the
stock price may increase.
Under normal circumstances, the fund will invest at least 85% of its
assets in income-paying securities and at least 65% of its assets in
stocks. A portion of the fund's assets may be invested in bonds and other
fixed-income securities. When the fund managers believe that it is prudent,
they also may invest assets in non-leveraged futures and options.
"Non-leveraged" means that the fund may not invest in futures and options
where it would be possible to lose more than the fund invested. Futures and
options can help the fund's cash assets remain liquid while performing more
like stocks. The fund seeks to receive dividend payments that provide a
yield to the fund that exceeds the yield of the stocks comprising the S&P
500 Index.
Additional information about Equity Income'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?
* As with all funds, at any given time the value of your shares of
Equity Income 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.
* The value of Equity Income's shares depends on the value of the
securities it owns and the amount of dividends and interest paid to
the fund. The value of the individual securities the fund owns and the
dividends they pay will go up and down depending on the performance of
the companies that issued them, general market and economic
conditions, and investor confidence.
* The value of Equity Income's assets invested in bonds and other
fixed-income securities will go up and down as prevailing interest
rates change. Generally, when interest rates rise, the fund's income
and its share value will decline. The opposite is true when interest
rates decline
* If the individual stocks Equity Income owns do not continue or
increase dividend payments, or if the values of those stocks do not
increase, the value of the fund's shares may not rise as high as other
funds and may in fact decline, even if stock prices are generally
increasing.
In summary, Equity Income is intended for investors who seek current
income through an equity fund that invests primarily in dividend-paying
stocks and who are willing to accept the risks associated with that
investment strategy.
FUND PERFORMANCE
The following bar chart shows the actual performance of Equity Income's
Investor Class shares for each calendar year since the fund's inception on
August 1, 1994. 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 1997 1996 1995
Equity Income 12.97 28.26 23.31 29.63%
Equity Income American Century Investments
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 Equity
Income 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 12/31/98 14.19%
Quarter Ended 9/30/98 -6.23%
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The S&P 500 Index, an
unmanaged index that reflects no operating costs, is included as a
benchmark for performance comparisons.
1 LIFE OF
YEAR FUND
---------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
---------------------------------------------------------------------
Equity Income 12.97% 21.09%
S&P 500 Index 28.68% 27.54%
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 1.00%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 1.00%
(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
$102 $318 $551 $1,219
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 MANAGER?
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 manager on the Equity
Income team is identified below:
PHILLIP N. DAVIDSON, Vice President and Portfolio Manager, has been a
member of the team that manages Equity Income since its inception in August
1994. He joined American Century in September 1993. He has a bachelor's
degree in finance and an MBA from Illinois State 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 $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
Fund Profile Equity Income
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 Equity Income
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?
Equity Income pays distributions of substantially all of its income and
realized capital gains 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-14830 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Small Cap Value
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.
AMERICAN CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
SMALL CAP VALUE
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
Small Cap Value seeks long-term capital growth by investing primarily in
common stocks. Income is a secondary objective.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for stocks of smaller companies that they believe
are undervalued at the time of purchase. The fund managers use a value
investment strategy that looks for companies that are temporarily out of
favor in the market. The fund managers attempt to purchase the stock of
these undervalued companies and hold them until they have returned to favor
in the market and their stock prices have gone up. Companies may be
undervalued due to market declines, poor economic conditions, actual or
anticipated bad news regarding the issuer or its industry, or because they
have been overlooked by the market. To identify these companies, the fund
managers look for companies whose earnings, cash flows and/or assets may
not be reflected accurately in the companies' stock prices, or companies
whose dividend payments appear high when compared to the stock prices.
The fund invests primarily in equity securities of smaller companies.
These smaller companies have a market capitalization (the number of shares
times the share price) at the time of investment that is not greater than
that of the largest company contained in the S&P/Barra Small-Cap 600 Value
Index. As of December 31, 1998, the largest company contained in the index
had a market capitalization of approximately $2.6 billion, while the median
company contained in the index had a market capitalization of $356 million.
The S&P/Barra Small-Cap 600 Value Index is an unmanaged stock index which
tracks the performance of small companies that may be attractive to
investors using the value style of investing.
Although Small Cap Value will invest primarily in equity securities, it
also may invest up to 35% of its assets in other types of securities
consistent with the accomplishment of its objective of capital growth. When
the fund managers believe that it is prudent, they also may invest assets
in non-leveraged futures and options. Non-leveraged means that the fund may
not invest in futures and options where it would be possible to lose more
than the fund invested. Futures and options can help the fund's cash assets
remain liquid while performing more like stocks.
Additional information about Small Cap Value's investments is available
in its semiannual report. In this report 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 this
report at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?
* As with all funds, at any given time the value of your shares of the
fund 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.
* The value of the Small Cap Value's shares depends on the value of the
stocks and other securities it owns. The value of the individual
securities the fund owns will go up and down depending on the
performance of the companies that issued them, general market and
economic conditions, and investor confidence.
* Small Cap Value invests primarily in securities of smaller companies.
These smaller companies may present greater opportunities for capital
appreciation, but also may involve greater risks than larger
companies. As a result, the value of the stocks issued by these
smaller companies may go up and down more than the stocks of larger
issuers. This price volatility may be reflected in the share price of
the fund.
* If the market does not consider the individual stocks purchased by
Small Cap Value to be undervalued, the value of the fund's shares may
not rise as high as other funds and may in fact decline, even if stock
prices are generally increasing.
* Market performance tends to be cyclical and, in the various cycles,
certain investment styles may fall in and out of favor. If the market
is not favoring the fund's style, the fund's gains may not be as big
as, or its losses may be bigger than, other equity funds using
different investment styles.
In summary, Small Cap Value is intended for investors who seek long-term
capital growth through an equity fund investing in smaller companies
utilizing the value style of investing and who are willing to accept the
risks associated with that investment strategy.
Small Cap Value 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 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 1.25%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 1.25%
(1)Other expenses include the fees and expenses of the fund's
independent directors, their legal counsel, interest and extraordinary
expenses.
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
$127 $395 $683 $1,503
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 Small
Cap Value team are identified below:
PHILLIP N. DAVIDSON, Vice President and Portfolio Manager, has been a
member of the team that manages Small Cap Value since its inception in July
1998. He joined American Century in September 1993. He has a bachelor's
degree in finance and an MBA from Illinois State University.
R. TODD VINGERS, Portfolio Manager, has been a member of the team that
manages Small Cap Value since its inception in July 1998. He joined
American Century in August 1994 as an Investment Analyst. He has a
bachelor's degree in business administration from the University of St.
Thomas and an MBA in finance and accounting from the University of Chicago.
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 $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. 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 Small Cap Value
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?
Small Cap Value pays distributions of substantially all of its income
and realized capital gains 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.
Fund Profile Small Cap Value
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-14831 9901 Funds Distributor, Inc.
<PAGE>
FUND PROFILE
Real Estate Fund
INVESTOR CLASS
January 15, 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.
AMERICAN CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
REAL ESTATE FUND
1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?
The Real Estate Fund seeks long-term capital growth by investing
primarily in securities issued by real estate investment trusts (REITs) and
securities of companies engaged in the real estate industry. Income is a
secondary objective.
2. WHAT IS THE FUND'S INVESTMENT STRATEGY?
The fund managers look for real estate securities that they believe will
provide superior returns to the fund. They attempt to focus the fund's
investments on real estate companies and REITs with the potential for
strong growth of cash flow to investors and, therefore, sustained dividend
increases to the fund.
To find these issuers, the fund managers track economic conditions and
real estate market performance in major metropolitan areas and analyze
performance of various property types within those regions. To perform this
analysis, they use information from a nationwide network of real estate
professionals to evaluate the holdings of real estate companies and REITs
in which the fund may invest. Their analysis also includes the companies'
management structure, financial structure and business strategy. The goal
of these analyses is to determine which of the issuers the fund managers
believe will be the most profitable to the fund. The fund managers also
consider the effect of the real estate securities markets in general in
making investment decisions.
Under normal conditions, the Real Estate Fund will invest at least 80%
of its assets in equity securities of REITs or companies which are
principally engaged in the real estate industry. A company is considered to
be principally engaged in the real estate industry if, at the time its
securities are purchased by the fund, at least 50% of its revenues or 50%
of the market value of its assets, in the opinion of the fund managers, are
attributed to the ownership, construction, management or sale of real
estate.
The fund may invest up to 20% of its assets in other types of
securities. These securities may include non-leveraged futures and options.
Non-leveraged means that the fund may not invest in futures and options
where it would be possible to lose more than the fund invested. Futures and
options can help the fund's cash assets remain liquid while performing more
like stocks.
Additional information about the Real Estate Fund'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?
* As with all funds, at any given time the value of your shares of the
fund 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.
* The value of the Real Estate Fund's shares depends on the value of the
stocks and other securities it owns. The value of the individual
securities the fund owns will go up and down depending on the
performance of the companies that issued them, general market and
economic conditions, and investor confidence.
* Since the value of its investments will be affected by the value of
the real estate owned by the companies in which it invests, the Real
Estate Fund may be subject to certain risks similar to those
associated with directly owning real estate. These risks include
changes in economic conditions, interest rates, property values,
property tax increases, increases in competition due to overbuilding,
environ- mental contamination, zoning and natural disasters.
* By investing in REITs indirectly through the fund, a shareholder will
be paying not only a share of the expenses of the fund, but also a
proportionate share of the expenses of the REIT - including any
management fees.
* Market performance tends to be cyclical and, in the various cycles,
certain investment styles may fall in and out of favor. If the market
is not favoring the fund's style, the fund's gains may not be as big
as, or its losses may be bigger than, other equity funds using
different investment styles.
In summary, the Real Estate Fund is intended for investors who seek
long-term capital growth through an equity fund investing in real estate
securities and who are willing to accept
Real Estate Fund American Century Investments
the risks associated with that investment strategy. Because of the fund's
policy of concentrating its investments in real estate securities, an
investment in the fund should not be considered a complete investment
program.
FUND PERFORMANCE
The following bar chart shows the actual performance of the Real Estate
Fund's Investor Class shares for each calendar year since the fund's
inception on September 21, 1995. 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 1997 1996
Real Estate Fund -18.10 25.21 40.81
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 the Real
Estate Fund 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 12/31/96 19.92%
Quarter Ended 9/30/98 -13.35%
The following table shows the average annual return of the fund's
Investor Class shares for the periods indicated. The Wilshire REIT Index,
an unmanaged index that reflects no operating costs, is included as a
benchmark for performance comparisons.
1 LIFE OF
YEAR FUND
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AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED DECEMBER 31, 1998)
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Real Estate -18.10% 13.54%
Wilshire REIT Index -16.96% 11.32%
(index as of 9/30/95)
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.
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ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
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Management Fee 1.20%
Distribution and Service (12b-1) Fees None
Other Expenses(1) 0.00%
Total Annual Fund Operating Expenses 1.20%
(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
$122 $380 $657 $1,447
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 Investment
Management, Inc. has in turn hired RREEF America, L.L.C. to make the
day-to-day investment decisions for the fund. RREEF America performs this
function under the supervision of American Century Investment Management,
Inc. and the fund's Board of Directors.
The portfolio managers on the RREEF America team are identified below:
KIM G. REDDING, Portfolio Manager, is a Senior Vice President of RREEF
America. From 1990 to 1993, he was a principal in K.G. Redding &
Associates, an investment advisor, and previously the President of Redding,
Melchor & Company,
Fund Profile Real Estate Fund
an investment advisor. He has been managing portfolios of real estate
securities since 1987.
KAREN J. KNUDSON, Portfolio Manager, is a Senior Vice President of RREEF
America. Prior to joining RREEF America, she was Senior Vice President and
Chief Financial Officer of Security Capital Group, an investment advisor.
She has over 14 years of real estate investment experience, specializing in
real estate investment trusts.
The representative of American Century Investment Management, Inc. who
oversees the management of the fund is identified below:
MARK L. MALLON, Senior Vice President and Managing Director, joined
American Century Investment Management, Inc. in April 1997. From August
1978 until joining American Century, he was employed by Federated
Investors, serving as President and Chief Executive Officer of Federated
Investment Counseling and Executive Vice President of Federated Research
Corporation from 1990 to 1997.
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 $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. 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 the fund 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?
The Real Estate Fund pays distributions from net investment income
quarterly. 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.
The fund may also receive returns of capital from REITs in which it
invests, which will be distributed to fund shareholders. Returns of capital
distributions are generally not taxable to the fund's shareholders, but may
decrease the cost basis of fund shares for those shareholders who do not
reinvest distributions. 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.
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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
SH-PRF-14832 9901 Funds Distributor, Inc.
