SEMIANNUAL
REPORT
[american century logo]
American
Century(reg.sm)
AUGUST 31, 1997
BENHAM
GROUP
Prime Money Market
TABLE OF CONTENTS
Report Highlights ........................................................... 1
Our Message to You .......................................................... 2
Market Perspective .......................................................... 3
Performance & Portfolio Information ......................................... 4
Management Q & A ............................................................ 5
Schedule of Investments 7
Statement of Assets and Liabilities .........................................11
Statement of Operations .....................................................12
Statements of Changes in Net Assets .........................................13
Notes to Financial Statements ...............................................14
Financial Highlights ........................................................16
Proxy Voting Results ........................................................17
Retirement Account Information ..............................................18
Background Information
Investment Philosophy & Policies .................................20
Comparative Indices ..............................................20
Lipper Rankings ..................................................20
Investment Team Leaders ..........................................20
Glossary ....................................................................21
American Century Investments offers you nearly 70 fund choices covering
stocks, bonds, money markets, specialty investments and blended portfolios.
We've organized our funds into three distinct groups to help you identify those
that best fit your needs. These groups, which appear below, are designed to help
simplify your fund decisions.
AMERICAN CENTURY INVESTMENTS--FAMILY OF FUNDS
- -------------------------------------------------------------------------------
Benham American Century Twentieth Century(reg. tm)
Group(reg. tm) Group Group
- -------------------------------------------------------------------------------
MONEY MARKET FUNDS ASSET ALLOCATION & GROWTH FUNDS
GOVERNMENT BOND FUNDS BALANCED FUNDS INTERNATIONAL FUNDS
DIVERSIFIED BOND FUNDS CONSERVATIVE EQUITY FUNDS
MUNICIPAL BOND FUNDS SPECIALTY FUNDS
- -------------------------------------------------------------------------------
Prime
Money Market
We welcome your comments or questions about this report.
See the back cover for ways to contact us by mail, phone or e-mail.
Twentieth Century and American Century are registered marks of American Century
Services Corporation. Benham Group is a registered mark of Benham Management
Corporation.
AMERICAN CENTURY INVESTMENTS
REPORT HIGHLIGHTS
MARKET PERSPECTIVE
* U.S. money market yields rose during the six months ended August 31, 1997,
largely because of a short-term interest rate increase by the Federal
Reserve.
* The Fed raised short-term interest rates in March to head off potential
inflation and slow the rapid pace of economic growth.
* Money market yields rose sharply in the weeks surrounding the Fed's action.
* A lack of inflationary pressure during the summer months led to a modest
decline in money market yields between May and August.
MANAGEMENT Q & A
* According to Lipper Analytical Services, the fund outperformed the average
money market fund during the six months ended August 31, 1997.
* Early in the period, the fund was positioned defensively, with an average
maturity of 40-45 days, because of our expectations for higher short-term
rates.
* The fund's shorter maturity enabled it to quickly reflect the Fed interest
rate increase in March.
* Because inflation remained in check, we extended the fund's average maturity
to 60 days in July.
* The fund expanded its holdings of asset-backed securities, especially
commercial paper backed by credit card receivables.
* Going forward, we expect short-term interest rates to remain stable through
the end of 1997, but we may see yields trend higher in early 1998.
* We plan to maintain the fund's current position until we see a clear
direction for interest rates.
PRIME MONEY MARKET
TOTAL RETURNS: AS OF 8/31/97
6 Months 2.60%*
1 Year 5.14%
7-DAY CURRENT YIELD: 5.19%
NET ASSETS: $1.3 billion
(AS OF 8/31/97)
INCEPTION DATE: 11/17/93
TICKER SYMBOL: BPRXX
* Not annualized.
Many of the investment terms in this report are defined in the Glossary on page
21.
SEMIANNUAL REPORT REPORT HIGHLIGHTS 1
OUR MESSAGE TO YOU
[photo of James E. Stowers III and James M. Benham]
During the six months ended August 31, 1997, Prime Money Market fund
continued to offer shareholders very competitive money market returns. In the
following pages, the fund's investment team provides further details about how
your fund was managed during the period.
We recently made some changes to the fund's investment team. Amy O'Donnell,
who has managed the fund since its inception in 1993, has shifted over to manage
American Century's three government money market funds, including our flagship
Capital Preservation fund. She has been replaced by John Walsh, a credit analyst
on the Prime fund investment team.
We also made some important corporate changes. In June, Bill Lyons, American
Century's chief operating officer, became president, assuming full
responsibility for the company's day-to-day operations. With this change, Jim
Stowers, Jr. and Jim Stowers III will be able to spend more time developing and
refining new investment technologies and tools that build on and leverage the
proprietary system they pioneered 25 years ago. One of our goals is to ensure
that we continue to evolve and innovate--building the investment tools today
that will help lead us and our investors to success in the next century.
During the summer, American Century held its largest proxy vote ever, asking
shareholders to approve measures to simplify fund management and eliminate
overlapping funds. Most notably, shareholders approved a unified fee for all
funds. In the past, many of our funds had both a management fee and separate
administrative and transfer agency fees. Under the new fee structure, fund
shareholders pay one annual management fee, based on a percentage of fund
assets.
In July, American Century agreed to enter into a business partnership with
J.P. Morgan & Co., Inc., one of the strongest and most respected firms in the
financial services industry. J.P. Morgan will become a significant minority
owner of American Century Companies, Inc., the parent company of the investment
manager of the American Century family of mutual funds. Through this
partnership, we see many opportunities to expand the range of investment choices
and services we offer you. A global financial services firm, J.P. Morgan has
been in business for more than 150 years, serving institutions, governments and
individuals with complex financial needs.
Within the framework of this new relationship, American Century will
continue to operate as an independent company. No changes in your fund's
investment managers, policies or fees are anticipated as a result of this
transaction. American Century's corporate management team remains the same, and
the Stowers family will retain voting control of the company.
In closing, we want to reassure you that American Century remains committed
to serving your investment needs first and foremost. Thank you for your trust
and confidence.
Sincerely,
/s/James E. Stowers III /s/James M. Benham
James E. Stowers III James M. Benham
Chief Executive Officer Vice Chairman
American Century Companies American Century Companies
2 OUR MESSAGE TO YOU AMERICAN CENTURY INVESTMENTS
MARKET PERSPECTIVE
[line graph - data below]
Federal Funds Rate vs. Three-Month LIBOR
March 28, 1997 through August 31, 1997
3-Month LIBOR Fed Funds Rate Target
2/28/97 5.53906% 5.25%
3/7/97 5.56250% 5.25%
3/14/97 5.59766% 5.25%
3/21/97 5.71875% 5.25%
3/28/97 5.77344% 5.50%
4/4/97 5.81250% 5.50%
4/11/97 5.81641% 5.50%
4/18/97 5.83594% 5.50%
4/25/97 5.85156% 5.50%
5/2/97 5.82031% 5.50%
5/9/97 5.81250% 5.50%
5/16/97 5.81641% 5.50%
5/23/97 5.80469% 5.50%
5/30/97 5.81250% 5.50%
6/6/97 5.81250% 5.50%
6/13/97 5.78125% 5.50%
6/20/97 5.78125% 5.50%
6/27/97 5.78125% 5.50%
7/4/97 5.75000% 5.50%
7/11/97 5.75000% 5.50%
7/18/97 5.75000% 5.50%
7/25/97 5.71875% 5.50%
8/1/97 5.68750% 5.50%
8/8/97 5.71875% 5.50%
8/15/97 5.73828% 5.50%
8/22/97 5.71875% 5.50%
8/29/97 5.71875% 5.50%
Source: DRI/McGraw Hill
MONEY MARKET YIELDS INCREASED
Money market yields rose during the six months ended August 31, 1997. The
increase was the direct result of a short-term interest rate increase by the
Federal Reserve in March. Although yields continued to rise in the weeks
following the Fed rate hike, they leveled off in May and declined slightly
throughout the remainder of the period.
The accompanying graph illustrates the change in money market rates during
the six-month period. The graph features the three-month London Interbank
Offered Rate (LIBOR), a money market rate that most banks and corporations track
when determining the rate they will pay to investors on short-term debt.
FED RAISES SHORT-TERM RATES IN MARCH
Money market yields rose sharply in March in anticipation of a short-term
interest rate increase by the Federal Reserve. As expected, the Fed raised its
federal funds rate target (the overnight lending rate targeted by the Fed for
large loans between commercial banks) from 5.25% to 5.50%. It was the Fed's
first rate hike since February 1995 and was described by Fed officials as a
"pre-emptive strike against inflation."
In raising rates, the Fed pointed to evidence of increasing wage pressures,
which are often passed on to consumers in the form of higher prices. The Fed was
also responding to stronger economic growth--the U.S. economy surged ahead at a
5% annual rate in the first quarter of 1997, fueled by strong job growth and
increased consumer spending. Economic growth slowed to a 3.3% annual rate in the
second quarter, but even this level of growth has historically been accompanied
by rising prices.
NO SIGNS OF INFLATION
Money market yields continued to rise in April, reflecting expectations of
rising inflation and further Fed interest rate increases. But the expected
inflation never materialized--the consumer price index rose at an annual rate of
just 1.3% during the six-month period. As a result, money market yields were
relatively steady between May and August, and expectations for future Fed rate
increases disappeared from the market.
SEMIANNUAL REPORT MARKET PERSPECTIVE 3
<TABLE>
<CAPTION>
PERFORMANCE & PORTFOLIO INFORMATION
AVERAGE ANNUAL RETURNS
6 MONTHS 1 YEAR 3 YEARS LIFE OF
FUND(1)
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURNS AS OF AUGUST 31, 1997
<S> <C> <C> <C> <C>
Prime Money Market ............................... 2.60% 5.14% 5.35% 5.06%
90-Day Treasury Bill Index ....................... 2.57% 5.16% 5.32% 5.00%(2)
Average Money Market Instrument Fund(3) .......... 2.43% 4.84% 5.00% 4.64%(2)
Fund's Ranking Among Money Market
Instrument Funds(3) .............................. -- 50 out of 294 25 out of 233 10 out of 210
- --------------------------------------------------------------------------------------------------------------------
(1) Inception date was November 17, 1993.
(2) Returns since 11/30/93, the date nearest the fund's inception for which data
are available.
(3) According to Lipper Analytical Services.
</TABLE>
See pages 20-21 for more information about returns, the comparative index and
Lipper fund rankings.
YIELDS AS OF AUGUST 31, 1997
7-DAY 7-DAY
CURRENT EFFECTIVE
YIELD YIELD
Prime Money Market 5.19% 5.32%
Yields are defined in the Glossary on page 21.
PORTFOLIO AT A GLANCE
8/31/97 2/28/97
Number of Securities 82 71
Weighted Average Maturity 60 days 54 days
Expense Ratio 0.50%* 0.50%
* Annualized.
Money market funds are neither insured nor guaranteed by the U.S. government.
Yields will fluctuate, and there can be no assurance that the fund will be able
to maintain a stable $1.00 share price.
4 PERFORMANCE & PORTFOLIO INFORMATION AMERICAN CENTURY INVESTMENTS
MANAGEMENT Q&A
An interview with John Walsh and Denise Tabacco, portfolio managers on the
Benham Prime Money Market fund investment team.
HOW DID THE FUND PERFORM?
The fund outperformed the average money market fund. For the six months
ended August 31, 1997, the fund posted a total return of 2.60%, compared with
the 2.43% average return of the 308 "Money Market Instrument Funds" tracked by
Lipper Analytical Services. (See the Total Returns table on the previous page
for other fund performance comparisons.)
HOW WAS THE FUND POSITIONED DURING THE SIX-MONTH PERIOD?
The fund started the period in a slightly defensive position, with an
average maturity of around 45 days. We shortened the fund's maturity to 35-40
days in May because of our expectation for further interest rate hikes by the
Federal Reserve. A shorter maturity enables the fund to reinvest its maturing
assets more quickly.
But by July, it became clear that inflation was still in check and the Fed
was holding interest rates steady, so we extended the fund's average maturity to
around 60 days. We maintained this position through the end of the period.
WHY IS THE FUND CURRENTLY HOLDING MORE COMMERCIAL PAPER THAN IT DID SIX MONTHS
AGO (SEE THE CHART BELOW)?
There are a couple of reasons. First, most of the new corporate money market
securities issued during the summer were commercial paper. Because of this
increase in supply, commercial paper tended to offer more attractive yields than
other short-term securities.
Second, the fund expanded its holdings of asset-backed securities, with a
focus on asset-backed commercial paper. In particular, the fund purchased part
of a pool of credit card receivables from Citibank.
YOU MENTIONED INVESTING IN ASSET-BACKED SECURITIES IN THE LAST REPORT. WHAT'S
THE ATTRACTION?
Asset-backed securities enable the fund to reach for higher yields while
retaining a high degree of credit quality. Asset-backed securities are debt
securities that represent ownership in a pool of assets, such as auto loans or
credit cards.
These securities typically have higher yields than commercial paper and CDs,
and they generally have very high credit quality because many carry credit
enhancements. In addition, asset-backed securities are often overcollateralized,
which means the securities contain more assets than are required to pay off the
debt.
[pie charts]
PORTFOLIO COMPOSITION BY SECURITY TYPE (as of 8/31/97)
Commercial Paper 71%
Floating-Rate Notes 18%*
U.S. Government
Agency Securities 7%
CDs 3%
Asset-Backed Securities 1%
PORTFOLIO COMPOSITION BY SECURITY TYPE (as of 2/28/97)
Commercial Paper 61%
Floating-Rate Notes 16%
U.S. Government
Agency Securities 12%
CDs 11%*
3% of the fund's floating-rate notes are asset-backed securities.
SEMIANNUAL REPORT MANAGEMENT Q & A 5
MANAGEMENT Q&A
DO YOU PLAN TO ADD MORE ASSET-BACKED SECURITIES IN THE FUTURE?
Yes, but we're taking a very conservative approach toward these securities.
We've hired a number of credit analysts who specialize in asset-backed
securities, and we're avoiding the more complex asset-backed issues that may
have hidden credit risks. We plan to stick with the most "plain-vanilla"
asset-backed securities.
LOOKING AHEAD, WHAT'S YOUR OUTLOOK FOR MONEY MARKET RATES?
We think that money market rates will be fairly stable through early 1998.
It's been six months since the Fed's pre-emptive interest rate hike, and we've
seen no evidence of inflationary pressures since then. We believe that the Fed
won't raise rates again until it sees solid evidence of increasing inflation. As
a result, we think the Fed will be on hold through the end of 1997.
However, the next few months could set the stage for rising inflation in
1998. Wage pressures may be building as a result of sustained low unemployment
levels. In addition, recent victories for organized labor--such as the UPS
strike--suggest the possibility of rising wages. Employment costs make up
two-thirds of all business costs, and corporations tend to pass on higher wage
costs to consumers by raising prices.
WITH THAT OUTLOOK IN MIND, HOW WILL YOU MANAGE THE FUND OVER THE NEXT SIX
MONTHS?
We plan to maintain the fund's average maturity at around 60 days until we
see some clear direction on inflation and interest rates. For now, we'll
continue to focus on commercial paper for most of the fund's assets, but we may
look to expand the fund's holdings of floating-rate notes if a Fed rate increase
becomes more likely. We also expect to work closely with our credit research
staff to uncover value among asset-backed securities.
[pie charts]
PORTFOLIO COMPOSITION BY CREDIT RATING (as of 8/31/97)
A-1+ 80%
A-1 16%
A-2 2%
Unrated U.S. Government
Agency Securities 2%
PORTFOLIO COMPOSITION BY CREDIT RATING (as of 2/28/97)
A-1+ 85%
A-1 15%
Credit ratings given by Standard & Poor's.
6 MANAGEMENT Q & A AMERICAN CENTURY INVESTMENTS
SCHEDULE OF INVESTMENTS
AUGUST 31, 1997 (UNAUDITED)
Principal Amount Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER(1)
BANKING--26.9%
$27,000,000 Abbey National North America
Corp., 5.36%, 10/8/97 $ 26,846,820
6,000,000 ABN Amro Bank Canada, 5.39%,
9/16/97 5,986,200
15,500,000 ABN Amro Bank North America
Finance, Inc., 5.38%, 12/15/97 15,249,320
11,000,000 ANZ (Delaware) Inc., 5.37%,
11/4/97 10,891,662
10,898,000 Bankers Trust New York Corp.,
5.38%, 12/9/97 10,731,669
10,000,000 Banque National de Paris (Canada),
5.36%, 9/30/97 9,955,533
6,500,000 Banque National de Paris (Canada),
5.39%, 12/29/97 6,380,752
15,000,000 Banque National de Paris (Canada),
5.40%, 1/21/98 14,672,217
13,000,000 BIL North America, Inc., 5.38%,
12/5/97 12,809,947
20,000,000 Chase Manhattan Corp., 5.37%,
11/14/97 19,773,478
15,000,000 Cibinong International Finance
Company B.V.,
5.36%, 9/29/97 (LOC:
Bank of America N.T.
& S.A.) 14,935,600
13,000,000 Cofco Capital Corp., 5.39%,
9/17/97 (LOC: Credit Suisse
First Boston) 12,967,933
3,000,000 Cofco Capital Corp., Series B,
5.39%, 9/17/97 (Acquired
8/19/97, Cost $2,986,636)
(LOC: Credit Suisse First
Boston)(2) 2,992,627
10,000,000 Daewoo International (America)
Corp., 5.37%,
10/17/97 (LOC:
Credit Suisse First Boston) 9,929,339
15,000,000 Demir Funding Corporation, 5.36%,
10/14/97 (LOC: Bayerische
Vereinsbank AG) 14,901,100
5,000,000 Garanti Funding Corporation, 5.40%,
1/15/98 (LOC:
Bayerische Vereinsbank AG) 4,894,789
Principal Amount Value
- --------------------------------------------------------------------------------
$15,000,000 Garanti Funding Corporation,
5.57%, 3/4/98 (LOC: Bayerische
Vereinsbank AG) $ 14,572,200
10,000,000 Garanti Funding Corporation, 5.58%,
4/28/98 (LOC: Bayerische
Vereinsbank AG) 9,630,214
25,000,000 Generale Bank, Inc., 5.39%,
9/16/97 24,941,980
25,000,000 Generale Bank, Inc., 5.40%, 1/6/98 24,510,027
7,055,000 IMI Funding Corp. (U.S.A.), 5.36%,
10/1/97 7,022,430
25,020,000 IMI Funding Corp. (U.S.A.), 5.40%,
2/5/98 24,414,412
13,500,000 National Australia Funding
(Delaware), Inc., 5.44%, 9/8/97 13,485,563
10,000,000 National Australia Funding
(Delaware), Inc., 5.42%, 9/11/97 9,984,611
15,000,000 Pemex Capital, Inc., 5.37%,
10/22/97 (LOC: Credit Suisse
First Boston) 14,883,125
20,000,000 Westdeutsche Landesbank
Girozentrale, 5.37%, 11/12/97 19,779,200
---------------
357,142,748
---------------
DIVERSIFIED COMPANIES--2.2%
10,000,000 Mitsubishi International Corp.,
5.42%, 9/11/97 9,984,639
20,000,000 Mitsubishi International Corp.,
5.38%, 9/19/97 19,944,200
---------------
29,928,839
---------------
FINANCIAL SERVICES--12.9%
20,000,000 Aesop Funding Corp., 5.41%,
9/12/97 (Acquired 8/1/97,
Cost $19,870,500)(2) 19,966,083
19,500,000 Dakota Certificates (Citibank),
Series 1995-7, 5.43%, 9/10/97
(Acquired 6/24/97, Cost
$19,264,245)(2) 19,472,798
9,500,000 Dakota Certificates (Citibank),
Series 1995-7, 5.38%, 9/22/97
(Acquired 8/4/97, Cost
$9,478,623)(2) 9,469,410
20,000,000 Dakota Certificates (Citibank),
Series 1995-7, 5.37%, 11/5/97
(Acquired 8/6/97, Cost
$19,720,933)(2) 19,800,667
See Notes to Financial Statements
SEMIANNUAL REPORT SCHEDULE OF INVESTMENTS 7
SCHEDULE OF INVESTMENTS
AUGUST 31, 1997 (UNAUDITED)
Principal Amount Value
- --------------------------------------------------------------------------------
$10,000,000 Dakota Certificates (Citibank),
Series 1995-7, 5.37%, 11/10/97
(Acquired 8/14/97,
Cost $9,864,578)(2) $ 9,892,278
13,000,000 General Electric Capital Corp.,
5.40%, 2/2/98 12,691,358
20,000,000 General Electric Capital Services,
Inc., 5.36%, 10/6/97 19,892,278
27,000,000 General Motors Acceptance Corp.,
5.39%, 12/29/97 26,497,523
6,000,000 Hitachi Credit America Corp., 5.42%,
9/11/97 5,990,800
5,475,000 Hitachi Credit America Corp., 5.39%,
9/18/97 5,460,470
10,000,000 Hitachi Credit America Corp., 5.36%,
10/6/97 9,946,236
11,750,000 Hitachi Credit America Corp., 5.37%,
10/28/97 11,647,305
---------------
170,727,206
---------------
HOUSEHOLD AUDIO & VIDEO--1.5%
20,000,000 Panasonic Finance, Inc., 5.36%,
9/29/97 (Acquired 7/7/97,
Cost $19,741,467)(2) 19,913,822
---------------
INSURANCE--1.9%
13,100,000 American Family Financial
Services, Inc., 5.36%, 10/9/97 13,023,947
13,000,000 General Re Corp., 5.39%,
12/31/97 12,758,370
---------------
25,782,317
---------------
MACHINERY--1.5%
20,000,000 Dover Corp., 5.37%, 9/25/97
(Acquired 8/26/97, Cost
$19,907,667)(2) 19,926,133
---------------
METALS & MINING--3.0%
20,000,000 RTZ America Inc., 5.47%, 9/5/97
(Aquired 6/6/97, Cost
$19,716,889)(2) 19,987,555
10,100,000 RTZ America Inc., 5.36%, 10/8/97
(Acquired 7/8/97, Cost
$9,957,265)(2) 10,042,595
Principal Amount Value
- -------------------------------------------------------------------------------
$10,000,000 RTZ America Inc., 5.36%,
10/14/97 (Acquired 7/14/97,
Cost $9,859,189)(2) $ 9,934,186
--------------
39,964,336
--------------
PETROLEUM REFINING--4.5%
20,000,000 Chevron U.K. Investment PLC,
5.48%, 9/4/97 19,990,650
30,000,000 Chevron U.K. Investment PLC,
5.37%, 10/21/97 29,770,000
10,000,000 Petroleo Brasileiro S.A., Series
C & D, 5.37%,
10/24/97 (LOC:
Barclays Bank PLC) 9,918,733
--------------
59,679,383
--------------
RETAIL--2.2%
9,050,000 Southland Corp., 5.44%, 9/9/97 9,038,899
12,000,000 Southland Corp., 5.37%, 9/24/97 11,957,833
8,150,000 Southland Corp., 5.37%, 11/3/97 8,071,216
--------------
29,067,948
--------------
SECURITY BROKERS & DEALERS--13.7%
20,000,000 BT Securities Corporation, 5.44%,
9/9/97 19,975,022
25,000,000 Credit Suisse First Boston, Inc.,
5.37%, 10/28/97 24,781,896
15,000,000 Credit Suisse First Boston, Inc.,
5.40%, 2/2/98 14,645,800
15,000,000 Goldman Sachs Group L.P., 5.50%,
9/2/97 14,997,659
20,000,000 Goldman Sachs Group L.P., 5.37%,
11/12/97 19,778,400
20,000,000 Merrill Lynch & Co., Inc., 5.49%,
9/3/97 19,993,811
20,000,000 Merrill Lynch & Co., Inc., 5.37%,
11/6/97 19,797,967
15,500,000 Merrill Lynch & Co., Inc., 5.38%,
11/24/97 15,299,636
10,000,000 Morgan Stanley, Dean Witter,
Discover & Co., 5.39%, 9/18/97 9,973,744
22,500,000 Morgan Stanley, Dean Witter,
Discover & Co., 5.36%, 10/9/97 22,369,137
--------------
181,613,072
--------------
See Notes to Financial Statements
8 SCHEDULE OF INVESTMENTS AMERICAN CENTURY INVESTMENTS
SCHEDULE OF INVESTMENTS
AUGUST 31, 1997 (UNAUDITED)
Principal Amount Value
- --------------------------------------------------------------------------------
TRUCKING & COURIER SERVICES--0.7%
$10,000,000 United Parcel Service of America,
Inc., 5.38%, 12/12/97 $ 9,844,167
--------------
TOTAL COMMERCIAL PAPER--71.0% 943,589,971
--------------
OTHER CORPORATE DEBT
$25,000,000 Abbey National Treasury Services,
VRN, 5.53%, 9/15/97, resets
monthly off the 1-month LIBOR
minus 0.12% with no caps 24,986,871
10,000,000 American Express Centurion Bank,
VRN, 5.675%, 9/24/97, resets monthly
off the 1-month LIBOR
plus 0.05% with no caps 10,001,521
23,750,000 American Express Centurion Bank,
VRN, 5.60%, 9/24/97, resets monthly
off the 1-month LIBOR
minus 0.03% with no caps 23,750,000
13,700,000 First Bank N.A. Minneapolis, VRN,
5.59%, 9/17/97, resets monthly
off the 1-month LIBOR minus
0.04% with no caps 13,700,000
50,000,000 General American Life, VRN, 5.87%,
9/2/97, resets monthly off the
1-month LIBOR plus 0.20% with
no caps (Acquired 1/3/97,
Cost $50,000,000)(2) 50,000,000
47,000,000 Transamerica Occidental Life
Insurance Co., VRN,
5.625%, 9/2/97, resets
monthly off the 1-month
LIBOR with no caps
(Acquired 6/30/97, Cost
$47,000,000)(2) 47,000,000
11,700,000 The Travelers Insurance Company,
VRN, 5.68%, 9/9/97, resets
monthly off the 1-month LIBOR
plus 0.05% with no caps (Acquired
6/9/97, Cost
$11,700,000)(2) 11,700,000
23,500,000 The Travelers Insurance Company,
VRN, 5.675%, 9/23/97, resets
monthly off the 1-month LIBOR
plus 0.05% with no caps (Acquired
5/23/97, Cost $23,500,000)(2) 23,500,000
--------------
TOTAL OTHER CORPORATE DEBT--15.4% 204,638,392
--------------
Principal Amount Value
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES
$23,500,000 ABSIT 97-C, VRN, 5.65%,
9/15/97, resets monthly off the
1-month LIBOR with no caps
(Acquired 6/11/97, Cost
$23,500,000)(2) $ 23,500,000
14,000,000 Americredit Automobile Receivables
Trust 1997-C, 5.66%, 9/12/98 14,000,000
14,000,000 Racers Series 1997-MM-8-5, VRN,
5.62%, 9/29/97, resets monthly
off the 1-month LIBOR minus
0.01% with no caps (Acquired
8/29/97, Cost $14,000,000)(2) 14,000,000
--------------
TOTAL ASSET-BACKED SECURITIES--3.9% 51,500,000
--------------
U.S. GOVERNMENT AGENCY SECURITIES
20,000,000 FHLB, 5.685%, 11/20/97 19,999,315
40,000,000 FHLB, VRN, 5.80%, 1/30/98 40,000,000
15,000,000 FNMA MTN, VRN, 5.45%, 9/3/97,
resets weekly off
the 3-month T-Bill rate
plus 0.19% with no caps 15,000,110
10,000,000 FNMA MTN, VRN, 5.46%, 9/3/97,
resets weekly off
the 3-month T-Bill rate
plus 0.20% with no caps 10,000,000
--------------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES--6.4% 84,999,425
--------------
CERTIFICATES OF DEPOSIT
3,500,000 Rabobank Nederland, 5.99%,
3/24/98 3,502,209
17,000,000 Societe Generale, 5.70%,
12/19/97 16,994,167
23,000,000 Societe Generale, 5.63%,
12/31/97 22,998,960
--------------
TOTAL CERTIFICATES OF DEPOSIT--3.3% 43,495,336
--------------
TOTAL INVESTMENT SECURITIES-100.0% $1,328,223,124
==============
See Notes to Financial Statements
SEMIANNUAL REPORT SCHEDULE OF INVESTMENTS 9
SCHEDULE OF INVESTMENTS
NOTES TO SCHEDULE OF INVESTMENTS
FHLB = Federal Home Loan Bank
FNMA = Federal National Mortgage Association
LOC = Letter of Credit
LIBOR = London Interbank Offered Rate
MTN = Medium Term Note
resets= The frequency with which a fixed-income security's coupon changes,
based on current market conditions or an underlying index. The more
frequently a security resets, the less risk the investor is taking that
the coupon will vary significantly from current market rates.
VRN = Variable Rate Note. Interest reset date is indicated and used in
calculating the weighted average portfolio maturity. Rate shown is
effective August 31, 1997.
(1) The rates for commercial paper are the yield to maturity at August 31, 1997.
(2) Security was purchased under Rule 144A or Section 4(2) of the Securities Act
of 1933 and, unless registered under the Act or exempted from registration,
may only be sold to qualified institutional investors. The aggregate value
of restricted securities at August 31, 1997, was $331,098,154, which
represented 24.9% of net assets. Restricted securities which were considered
illiquid represented 5.5% of net assets.
See Notes to Financial Statements
10 SCHEDULE OF INVESTMENTS AMERICAN CENTURY INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1997 (UNAUDITED)
ASSETS
Investment securities, at value (Note 1) ............... $1,328,223,124
Cash ................................................... 6,200,413
Interest receivable .................................... 4,130,348
--------------
1,338,553,885
--------------
LIABILITIES
Disbursements in excess of
demand deposit cash .................................. 3,335,839
Payable for capital shares redeemed .................... 2,250,451
Accrued management fees (Note 2) ....................... 571,593
Dividends payable ...................................... 374,439
Accrued expenses and other liabilities ................. 76,352
--------------
6,608,674
--------------
Net Assets Applicable to
Outstanding Shares ................................... $1,331,945,211
==============
CAPITAL SHARES
Outstanding (Unlimited number
of shares authorized) ................................ 1,332,199,645
==============
Net Asset Value Per Share .............................. $1.00
==============
NET ASSETS CONSIST OF:
Capital paid in ........................................ $1,332,199,645
Accumulated undistributed net realized
loss on investment transactions ...................... (254,434)
--------------
$1,331,945,211
==============
See Notes to Financial Statements
SEMIANNUAL REPORT STATEMENT OF ASSETS AND LIABILITIES 11
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1997 (UNAUDITED)
INVESTMENT INCOME
Income:
Interest .................................................. $35,220,937
-----------
Expenses (Note 2):
Investment advisory fees .................................. 2,277,080
Transfer agency fees ...................................... 765,989
Administrative fees ....................................... 476,721
Printing and postage ...................................... 241,103
Custodian fees ............................................ 92,192
Telephone expenses ........................................ 58,663
Registration and filing fees .............................. 52,224
Trustees' fees and expenses ............................... 28,042
Auditing and legal fees ................................... 23,907
Other operating expenses .................................. 23,710
-----------
Total expenses .......................................... 4,039,631
Amount waived ............................................. (894,608)
-----------
Net expenses ............................................ 3,145,023
-----------
Net investment income ..................................... 32,075,914
-----------
REALIZED GAIN ON INVESTMENTS (NOTE 3)
Net realized gain on investments .......................... 24,101
-----------
Net Increase in Net Assets
Resulting from Operations ............................... $32,100,015
============
See Notes to Financial Statements
12 STATEMENT OF OPERATIONS AMERICAN CENTURY INVESTMENTS
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED AUGUST 31, 1997 (UNAUDITED)
AND YEAR ENDED FEBRUARY 28, 1997 AND FEBRUARY 29, 1996
August 31, February 28,
Increase (Decrease) in Net Assets 1997 1997
OPERATIONS
<S> <C> <C>
Net investment income ......................... $ 32,075,914 $ 61,135,898
Net realized gain (loss) on investments ....... 24,101 (278,535)
-------------- --------------
Net increase in net assets
resulting from operations .................. 32,100,015 60,857,363
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income .................... (32,075,914) (61,135,898)
-------------- --------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ..................... 1,018,726,179 1,722,837,328
Proceeds from reinvestment
of distributions ............................ 30,238,384 58,408,826
Payments for shares redeemed .................. (929,033,776) (1,839,630,699)
-------------- --------------
Net increase (decrease) in net assets
from capital share transactions ............. 119,930,787 (58,384,545)
-------------- --------------
Net increase (decrease) in net assets ......... 119,954,888 (58,663,080)
NET ASSETS
Beginning of period ........................... 1,211,990,323 1,270,653,403
-------------- --------------
End of period ................................. $1,331,945,211 $1,211,990,323
============== ==============
TRANSACTIONS IN SHARES OF THE FUND
Sold .......................................... 1,018,726,179 1,722,837,328
Issued in reinvestment of distributions ....... 30,238,384 58,408,826
Redeemed ...................................... (929,033,776) (1,839,630,699)
-------------- --------------
Net increase (decrease) ....................... 119,930,787 (58,384,545)
============== ==============
See Notes to Financial Statements
</TABLE>
SEMIANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS 13
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1997 (UNAUDITED)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION--American Century Investment Trust (the Trust) is registered
under the Investment Company Act of 1940 as an open-end diversified management
investment company. American Century - Benham Prime Money Market Fund (the Fund)
is the only fund issued by the Trust. The Fund seeks the highest level of
current income consistent with preservation of capital. The Fund buys high
quality (first tier), U.S. dollar denominated money market instruments and other
short-term obligations of banks, governments, and corporations. The following
significant accounting policies, related to the Fund, are in accordance with
accounting policies generally accepted in the investment company industry.
SECURITY VALUATIONS--Securities are valued at amortized cost, which
approximates current market value. When valuations are not readily available,
securities are valued at fair value as determined in accordance with procedures
adopted by the Board of Trustees.
SECURITY TRANSACTIONS--Security transactions are accounted for on the date
purchased or sold. Net realized gains and losses are determined on the
identified cost basis, which is also used for federal income tax purposes.
INVESTMENT INCOME--Interest income is recorded on the accrual basis and
includes amortization of discounts and premiums. Discounts and premiums are
amortized daily on a straight-line basis.
INCOME TAX STATUS--It is the Fund's policy to distribute all taxable income
and to otherwise qualify as a regulated investment company under the provisions
of the Internal Revenue Code. Accordingly, no provision has been made for
federal income taxes.
DISTRIBUTIONS--Distributions from net investment income are declared and
credited daily and distributed monthly. The Fund does not expect to realize any
long-term capital gains, and accordingly, does not expect to pay any capital
gains distributions.
SUPPLEMENTARY INFORMATION--Certain officers and trustees of the Trust are
also officers and/or directors, and, as a group, controlling stockholders of
American Century Companies, Inc., the parent of the Trust's investment manager,
American Century Investment Management, Inc. (ACIM), the Trust's distributor,
American Century Investment Services, Inc. and the Trust's transfer agent,
American Century Services Corporation (ACSC).
USE OF ESTIMATES--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the period. Actual results could differ from these
estimates.
14 NOTES TO FINANCIAL STATEMENTS AMERICAN CENTURY INVESTMENTS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1997 (UNAUDITED)
2. TRANSACTIONS WITH RELATED PARTIES
The shareholders of the Fund approved a new management agreement with ACIM
on July 30, 1997, effective August 1, 1997, which replaced the previously
existing contracts between the Fund and Benham Management Corporation and ACSC
for advisory, administrative and transfer agency services. Under the agreement,
ACIM provides all services required by the Fund in exchange for one "unified"
management fee. The annual rate at which this fee is assessed is determined
monthly in a two-step process: First, a fee rate schedule is applied to the
assets of all of the funds in the Fund's investment category which are managed
by ACIM (the "Investment Category Fee"). The overall investment objective of the
Fund determines its Investment Category. The three investment categories are:
the Money Market Fund Category, the Bond Fund Category and the Equity Fund
Category. The Prime Fund is in the Money Market Fund Category. Second, a
separate fee rate schedule is applied to the assets of all of the funds managed
by ACIM (the "Complex Fee"). The Investment Category Fee and the Complex Fee are
then added to determine the unified management fee rate. The management fee is
paid monthly by the Fund based on the Fund's aggregate average daily net assets
during the previous month multiplied by the monthly management fee rate. The
annualized Investment Category Fee schedule for the Fund is as follows:
0.3700% of the first $1 billion
0.3270% of the next $1 billion
0.2860% of the next $3 billion
0.2690% of the next $5 billion
0.2580% of the next $15 billion
0.2575% of the next $25 billion
0.2570% of the average daily net assets over $50 billion
The annualized Complex Fee schedule is as follows:
0.3100% of the first $2.5 billion
0.3000% of the next $7.5 billion
0.2985% of the next $15 billion
0.2970% of the next $25 billion
0.2960% of the next $50 billion
0.2950% of the next $100 billion
0.2940% of the next $100 billion
0.2930% of the next $200 billion
0.2920% of the next $250 billion
0.2910% of the next $500 billion
0.2900% of the average daily net assets over $1,250 billion
ACIM has agreed to continue to waive expenses which exceed 0.50% of average
daily net assets. Expenses of $675,917, of which $109,360 were waived by ACIM,
were incurred under the new management agreement and are included in Investment
Advisory Fees in the Statement of Operations. Expenses under the previous
agreement, for the five months ended July 31, 1997, were $3,363,714, of which
$785,248 were waived by ACIM. The ratio of operating expenses to average net
assets, net of the amount waived, for the same period was 0.50%.
SEMIANNUAL REPORT NOTES TO FINANCIAL STATEMENTS 15
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Years Ended February 28 (except as noted)
1997(1) 1997 1996(2) 1995 1994(3)
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C>
Beginning of Period ..................... $1.00 $1.00 $1.00 $1.00 $1.00
-------- -------- -------- -------- --------
Income From Investment Operations
Net Investment Income ................. 0.03 0.05 0.06 0.05 0.01
-------- -------- -------- -------- --------
Distributions
From Net Investment Income ............ (0.03) (0.05) (0.06) (0.05) (0.01)
-------- -------- -------- -------- --------
Net Asset Value, End of Period .......... $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total Return(4) ....................... 2.60% 5.04% 5.60% 4.93% 0.96%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ...................0.50%(5) 0.50% 0.48% 0.04% --
Ratio of Operating Expenses to
Average Net Assets
(Before Expense Waiver) .................0.64%(5) 0.63% 0.62% 0.71% 1.49%(5)
Ratio of Net Investment Income
to Average Net Assets ...................5.11%(5) 4.92% 5.43% 5.28% 3.35%(5)
Ratio of Net Investment Income
to Average Net Assets
(Before Expense Waiver) .................4.97%(5) 4.79% 5.29% 4.61% 1.86%(5)
Net Assets, End
of Period (in thousands) ...............$1,331,945 $1,211,990 $1,270,653 $1,509,863 $75,168
(1) Six months ended August 31, 1997.
(2) Year ended February 29, 1996.
(3) November 17, 1993 (inception) through February 28, 1994.
(4) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total return for periods less than one year are not
annualized.
(5) Annualized.
See Notes to Financial Statements
</TABLE>
16 FINANCIAL HIGHLIGHTS AMERICAN CENTURY INVESTMENTS
PROXY VOTING RESULTS
An annual meeting of shareholders was held on July 30, 1997, to vote on the
following proposals. All of the proposals received the required majority of
votes and were adopted.
A summary of voting results is listed below each proposal.
PROPOSAL 1:
To vote on the selection by the Board of Directors of Coopers & Lybrand LLP
as independent auditors for the Trust.
For: 707,889,037
Withheld: 17,468,261
Abstain: 9,277,275
PROPOSAL 2:
To vote on the approval of a Management Agreement with American Century
Investment Managment, Inc.
For: 688,718,487
Against: 33,656,668
Abstain: 12,053,272
Broker Non-Vote: 206,146
PROPOSAL 3:
To vote on the adoption of standardized investment limitations for the
following items:
* Eliminate the fundamental investment limitation concerning diversification
of investments.
For: 670,961,555
Against: 45,887,608
Abstain: 17,579,264
Broker Non-Vote: 206,146
* Amend the fundamental investment limitation concerning the issuance of
senior securities.
For: 670,719,693
Against: 46,123,701
Abstain: 17,585,033
Broker Non-Vote: 206,146
* Amend the fundamental investment limitation concerning borrowing.
For: 670,236,705
Against: 46,575,923
Abstain: 17,615,799
Broker Non-Vote: 206,146
* Amend the fundamental investment limitation concerning lending.
For: 670,729,730
Against: 46,075,204
Abstain: 17,623,493
Broker Non-Vote: 206,146
* Amend the fundamental investment limitation concerning commodities.
For: 672,163,851
Against: 44,668,104
Abstain: 17,596,472
Broker Non-Vote: 206,146
SEMIANNUAL REPORT PROXY VOTING RESULTS 17
RETIREMENT ACCOUNT INFORMATION
As required by law, any distributions you receive from an IRA and certain
403(b) distributions [not eligible for rollover to an IRA or to another 403(b)]
are subject to federal income tax withholding at the rate of 10% of the total
amount withdrawn, unless you elect not to have withholding apply. If you don't
want us to withhold on this amount, you may send us a written notice not to have
the federal income tax withheld. Your written notice is valid for six months
from the date of receipt at American Century. Even if you plan to roll over the
amount you withdraw to another tax-deferred account, the withholding rate still
applies to the withdrawn amount unless we have received a written notice not to
withhold federal income tax within six months prior to the withdrawal.
When you plan to withdraw, you may make your election by completing our
Exchange/ Redemption form or an IRS Form W-4P. Call American Century for either
form. Your written election is valid for only six months from the date of
receipt at American Century. You may revoke your election at any time by sending
a written notice to us.
Remember, even if you elect not to have income tax withheld, you are liable
for paying income tax on the taxable portion of your withdrawal. If you elect
not to have income tax withheld or you don't have enough income tax withheld,
you may be responsible for payment of estimated tax. You may incur penalties
under the estimated tax rules if your withholding and estimated tax payments are
not sufficient.
18 RETIREMENT ACCOUNT INFORMATION AMERICAN CENTURY INVESTMENTS
NOTES
SEMIANNUAL REPORT NOTES 19
BACKGROUND INFORMATION
INVESTMENT PHILOSOPHY & POLICIES
The Benham Group offers 38 fixed-income funds, ranging from money market
funds to long-term bond funds and including both taxable and tax-exempt funds.
PRIME MONEY MARKET is a money market fund that seeks to provide interest
income by investing in a diversified portfolio of short-term money market
securities. The fund must maintain a weighted average maturity of 90 days or
less.
An investment in Prime Money Market is neither insured nor guaranteed by the
U.S. government. Yields will fluctuate, and there can be no assurance that the
fund will be able to maintain a stable net asset value of $1 per share.
COMPARATIVE INDICES
The following index is used in the report as a fund performance comparison.
It is not an investment product available for purchase.
The 90-DAY TREASURY BILL INDEX is derived from secondary market interest
rates as published by the Federal Reserve Bank.
LIPPER RANKINGS
LIPPER ANALYTICAL SERVICES, INC. is an independent mutual fund ranking
service that groups funds according to their investment objectives. Rankings are
based on average annual returns for each fund in a given category for the
periods indicated. Rankings are not included for periods less than one year.
The Lipper category for the Prime Money Market fund is:
MONEY MARKET INSTRUMENT FUNDS--funds that intend to maintain a stable net
asset value and that invest in high-quality financial instruments rated in the
top two grades with dollar-weighted average maturities of less than 90 days.
INVESTMENT TEAM LEADERS
Portfolio Managers John Walsh, Denise Tabacco
Credit Research Director Greg Afiesh
20 BACKGROUND INFORMATION AMERICAN CENTURY INVESTMENTS
GLOSSARY
RETURNS
* TOTAL RETURN figures show the overall percentage change in the value of a
hypothetical investment in the fund and assume that all of the fund's
distributions are reinvested.
* AVERAGE ANNUAL RETURNS illustrate the annually compounded returns that would
have produced the fund's cumulative total returns if the fund's performance had
been constant over the entire period. Average annual returns smooth out
variations in a fund's return; they are not the same as fiscal year-by-year
results. For fiscal year-by-year returns, please refer to the "Financial
Highlights" on page 16.
YIELDS
* 7-DAY CURRENT YIELD is calculated based on the income generated by an
investment in the fund over a seven-day period and is expressed as an annual
percentage rate.
* 7-DAY EFFECTIVE YIELD is calculated similarly, although this figure is
slightly higher than the fund's 7-Day Current Yield because of the effects of
compounding. The 7-Day Effective Yield assumes that income earned from the
fund's investments is reinvested and generating additional income.
PORTFOLIO STATISTICS
* NUMBER OF SECURITIES--the number of different securities held by a fund on a
given date.
* WEIGHTED AVERAGE MATURITY (WAM)--a measurement of the sensitivity of a
fixed-income portfolio to interest rate changes. WAM indicates the average time
until the securities in the portfolio mature, weighted by dollar amount. The
longer the WAM, the more interest rate exposure and sensitivity the portfolio
has.
* EXPENSE RATIO--the operating expenses of the fund, expressed as a percentage
of average net assets. Shareholders pay an annual fee to the investment manager
for investment advisory and management services. The expenses and fees are
deducted from fund income, not from each shareholder account. (See Note 2 in the
Notes to Financial Statements.)
TYPES OF MONEY MARKET SECURITIES
* ASSET-BACKED SECURITIES--debt securities that represent ownership in a pool of
receivables, such as credit card debt, auto loans or mortgages.
* CERTIFICATES OF DEPOSIT (CDS)--CDs represent a bank's obligation to repay
money deposited with it for a specified period of time. Different types of CDs
have different issuers. For example, Yankee CDs are issued by U.S. branches of
foreign banks, and Eurodollar CDs are issued in London by Canadian, European and
Japanese banks.
* COMMERCIAL PAPER (CP)--short-term debt issued by large corporations to raise
cash and to cover current expenses in anticipation of future revenues. The
maximum maturity for CP is 270 days, although most CP is issued in a one- to
50-day maturity range. CP rates generally track those of other widely traded
money market instruments, such as Treasury bills and certificates of deposit,
but they are also influenced by the maturity date and the size and credit rating
of the issuer.
* FLOATING-RATE NOTES (FLOATERS)--debt securities whose interest rates change
when a designated base rate changes. The base rate is often the federal funds
rate, the 90-day Treasury bill rate or the London Interbank Offered Rate (LIBOR)
Floaters are considered derivatives because they "derive" their interest rates
from their designated base rates. However, floaters are not "risky"
derivatives--their behavior is similar to that of their designated base rates.
The SEC has recognized this similarity and does not consider floaters to be
inappropriate investments for money market funds.
* U.S. GOVERNMENT AGENCY SECURITIES--debt securities issued by U.S. government
agencies (such as the Federal Farm Credit Bank and the Federal Home Loan Bank).
Some agency securities are backed by the full faith and credit of the U.S.
government, while most are guaranteed only by the issuing agency. These
securities are issued with maturities ranging from three months to 30 years.
Money market funds invest in these securities when they have remaining
maturities of 13 months or less.
SEMIANNUAL REPORT GLOSSARY 21
[american century logo]
American
Century(reg.sm)
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
INVESTOR SERVICES:
1-800-345-2021 OR 816-531-5575
AUTOMATED INFORMATION LINE:
1-800-345-8765
TELECOMMUNICATIONS DEVICE FOR THE DEAF:
1-800-634-4113 OR 816-444-3485
FAX: 816-340-7962
INTERNET: www.americancentury.com
AMERICAN CENTURY INVESTMENT TRUST
INVESTMENT MANAGER
AMERICAN CENTURY INVESTMENT MANAGEMENT, INC.
KANSAS CITY, MISSOURI
THIS REPORT AND THE STATEMENTS IT
CONTAINS ARE SUBMITTED FOR THE GENERAL
INFORMATION OF OUR SHAREHOLDERS. THE
REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
AMERICAN CENTURY INVESTMENT SERVICES, INC.
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SH-BKT-9883 Recycled
