ANNUAL
REPORT
[american century logo(reg.sm)]
American
Century (reg.tm)
FEBRUARY 28, 1998
BENHAM
GROUP
Prime Money Market
TABLE OF CONTENTS
Report Highlights ......................................................... 1
Our Message to You ........................................................ 2
Services Update ........................................................... 3
Performance & Portfolio Information ....................................... 4
Management Q & A .......................................................... 5
Schedule of Investments ................................................... 7
Statement of Assets and Liabilities ....................................... 10
Statement of Operations ................................................... 11
Statements of Changes in Net Assets ....................................... 12
Notes to Financial Statements ............................................. 13
Financial Highlights ...................................................... 15
Report of Independent Accountants ......................................... 16
Retirement Account Information ............................................ 17
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, based on investment style
and objectives, to help simplify your fund decisions. These groups appear below.
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.
American Century and Benham Group are registered marks of American Century
Services Corporation.
AMERICAN CENTURY INVESTMENTS
REPORT HIGHLIGHTS
* According to Lipper Analytical Services, the fund outperformed the average
money market fund during the 12 months ended February 28, 1998.
* We left the fund's portfolio in a neutral position (weighted average
maturity around 55 days) for most of the period. This reflected the
prevailing uncertainty about the future direction of interest rates.
* The financial crisis in Southeast Asia had a minimal impact on the fund. We
significantly reduced the fund's remaining Japanese holdings and replaced
them with higher-quality U.S. securities.
* To help maintain the fund's above-average yield, we continued to search for
attractively valued variable-rate notes (VRNs), whose yields are typically
higher than fixed-rate securities. VRNs are debt securities whose interest
rates change when a designated base rate changes.
* We believe interest rates should remain stable in the near term. We don't
think the Federal Reserve will change interest rates while U.S. economic
strength and Asian economic weakness continue to offset each other.
* As long as interest rates remain stable, we plan to maintain the fund's
weighted average maturity at around 55-60 days. In addition, we'll diversify
away from financial services and bank holdings by looking for attractively
priced commercial paper backed by U.S. industrial companies.
* The fund's fee waiver--which caps expenses at 0.50% of average daily net
assets--expires on May 31, 1998, and the fee will rise 0.10% to 0.60%. The
slightly higher fee could cause a small decline in the fund's yield.
* Note: We have added a new "Services Update" section to your report to
provide answers to frequently asked questions about our money market fund
services.
PRIME MONEY MARKET
TOTAL RETURNS: AS OF 2/28/98
6 Months 2.62%*
1 Year 5.29%
7-DAY CURRENT YIELD: 5.17%
NET ASSETS: $1.4 billion
(AS OF 2/28/98)
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.
ANNUAL REPORT REPORT HIGHLIGHTS 1
OUR MESSAGE TO YOU
[hoto of James E. Stowers, Jr. and James E. Stowers III]
This has been an eventful year for the financial markets and for American
Century. The Benham Prime Money Market Fund performed well during the 12 months
ended February 28, 1998, providing very competitive money market returns.
Short-term interest rates remained relatively stable despite a robust U.S.
economy.
As many of you may know, we gained a powerful business partner this past
January when J.P. Morgan became a substantial minority shareholder in American
Century. J.P. Morgan has been in business over 150 years, serving institutions,
governments and individuals with complex financial needs. The new business
partnership is very exciting, and will allow both companies to offer investors a
highly diverse menu of investment options and services.
Many of you may also know that Jim Benham, founder of the Benham Group,
retired in December. With the integration of Benham and Twentieth Century
successfully completed, Jim felt it was time to step back from the business.
Much of the Benham culture has become a part of American Century, including the
educational investor seminar program Jim created. Two of his sons, Jim A. Benham
and Tim Benham, remain with the company to carry on the Benham tradition.
We would also like to let you know what we're doing about the year 2000
issue, which refers to the possible inability of computer systems to distinguish
between the years 1900 and 2000. Like other financial companies, a significant
percentage of our computer operations involves some type of date comparison or
date calculation. Although much of our system is already year 2000 compliant, we
are aggressively addressing the problem, and anticipate the project should be
completed by the end of November, 1998.
In closing, we are proud to note that 1998 marks the 40th year since
American Century launched its first mutual funds. Not many fund companies can
claim a 40-year track record, or a fund family that includes nearly 70 stock,
bond, money market and combination (stock and bond) funds that provide investors
with such a wide range of choice and flexibility. Whatever your financial goals,
we believe American Century has an outstanding lineup of funds to help you reach
them.
Thank you for your investment.
Sincerely,
/s/James E. Stowers, Jr. /s/James E. Stowers III
James E. Stowers, Jr. James E. Stowers III
Chairman of the Board and Founder President and Chief Executive Officer
2 OUR MESSAGE TO YOU AMERICAN CENTURY INVESTMENTS
SERVICES UPDATE
We get many questions from money market investors about our services. Here
are answers to several frequently asked questions.
IS THERE A FEE FOR WRITING CHECKS AGAINST MY MONEY MARKET FUND?
No. You can write as many checks as you want at no charge, as long as each
one is for $100 or more.
BESIDES WRITING A CHECK, HOW ELSE CAN I ACCESS MY MONEY?
There are a couple of easy ways. First, we can send a check directly to you
at your address of record. All you need to do is give us a call or write us a
letter requesting the check, and we'll send it right out to you.
We can also make automatic deposits from your money market fund to your bank
account. Just make sure we have all of your bank information on file, and then
give us a call to request a direct transfer to your bank account.
IS THERE A LIMIT TO THE NUMBER OF EXCHANGES I CAN MAKE OUT OF MY MONEY MARKET
FUND?
No. Exchanges involve moving money from one American Century fund to
another. Although there is a limit of six exchanges out of our bond and stock
funds, this limit does not apply to money market funds.
Exchanges can be made by calling an Investor Services representative,
dialing into our Automated Information Line, writing us a letter, or connecting
to our Web site. You can also make exchanges through our Automatic Exchange plan
or Open Order service.
HOW DO OPEN ORDERS WORK?
Open Orders enable you to buy or sell shares in a mutual fund automatically
at a price you designate. Here's how it works:
* TO BUY--select a fund in which you wish to invest and specify a price at
which you'd like to buy shares. Because the object is to buy low, the price
you specify must be at or below the fund's last closing price. If the fund's
price closes at or below your specified price, we will automatically move
the amount you designated from your money market fund into an account in the
fund you selected.
* TO SELL--select a fund in which you own shares and specify a price at which
you'd like to sell them. Because the object is to sell high, the price you
specify must be at or above the fund's last closing price (we can't place
stop-loss orders for you). If the fund's price closes at or above your
specified price, we'll sell the number of shares you designated and move the
proceeds into your money market fund.
SOME OTHER NOTES ABOUT OPEN ORDERS:
* Open Orders last for a maximum of 90 days and may be canceled or extended
whenever you choose.
* Once you've placed, canceled, or modified your Open Order, we'll send a
letter confirming your decision to your address of record.
IF YOU HAVE ANY QUESTIONS ABOUT OUR SERVICES, CALL US TOLL-FREE AT
1-800-345-2021 OR E-MAIL US AT OUR WEB SITE AT WWW.AMERICANCENTURY.COM.
ANNUAL REPORT SERVICES UPDATE 3
<TABLE>
<CAPTION>
PERFORMANCE & PORTFOLIO INFORMATION
AVERAGE ANNUAL RETURNS
6 MONTHS 1 YEAR 3 YEARS LIFE OF
FUND(2)
- -------------------------------------------------------------------------------------------------------------
TOTAL RETURNS AS OF FEBRUARY 28, 1998(1)
<S> <C> <C> <C> <C>
Prime Money Market ........................ 2.62% 5.29% 5.31% 5.09%
90-Day Treasury Bill Index ................ 2.13% 4.75% 5.12% 4.92%(3)
Average Money Market Instrument Fund(4) ... 2.43% 4.93% 5.03% 4.69%(3)
Fund's Ranking Among Money Market
Instrument Funds(4) ....................... -- 43 out of 306 40 out of 245 10 out of 207
- ----------
(1) Returns for periods less than one year are not annualized.
(2) Inception date was November 17, 1993.
(3) Returns since 11/30/93, the date nearest the fund's inception for which data
are available.
(4) 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 FEBRUARY 28, 1998
7-DAY 7-DAY
CURRENT EFFECTIVE
YIELD YIELD
Prime Money Market 5.17% 5.30%
Yields are defined in the Glossary on page 21.
PORTFOLIO AT A GLANCE
2/28/98 2/28/97
Number of Issuers 58 49
Weighted Average Maturity 65 days 54 days
Expense Ratio 0.50% 0.50%
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 DURING THE YEAR ENDED FEBRUARY 28, 1998?
The fund performed well, providing a higher level of income than the average
money market fund. For the 12-month period, the fund had a total return of
5.29%, compared with the 4.93% average return of the 306 "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 PERIOD?
We consider a weighted average maturity of 50-60 days to be a neutral
position for the fund, the target we use when we're unsure about the future
direction of interest rate movements. We moved the fund from a slightly
defensive position in the first several months of the period to a more neutral
stance for the remainder of the year. After beginning the fiscal year with an
average maturity of around 45 days, we shortened to a more defensive posture of
between 30-40 days in May when we were concerned that the Federal Reserve would
raise interest rates to reduce inflationary pressures. If the Fed did raise
rates, we wanted to improve our ability to translate those higher rates into a
higher yield for the fund.
Over the next couple of months, however, the inflation threat subsided and
the Fed held interest rates steady. As a result, we extended the fund's average
maturity to 60 days in July. Given an uncertain outlook for interest rates
stemming from the countervailing forces of an economic slowdown in Southeast
Asia and a strong U.S. economy, we maintained a 55-60-day average maturity until
late November. The average maturity dipped in December, reflecting a temporary
scarcity of attractively priced, longer-maturity paper. When supply bounced
back, we extended the average maturity back out to about 55-60 days at the end
of 1997, where it remained until the end of the period.
DID THE FINANCIAL PROBLEMS IN SOUTHEAST ASIA HAVE ANY IMPACT ON THE FUND?
No. Our credit group spotted the Japanese banking sector's deterioration
quite some time ago. As a result, Prime's Japanese holdings were small and
limited to securities of strong Japanese industrial companies, such as Toyota.
As the problems in Southeast Asia intensified, our conservative investment
approach led us to further reduce our Japanese industrial holdings. Our credit
team of 10 analysts continues to closely monitor events in Southeast Asia and
Japan to anticipate the impact of continued Asian weakness on other sectors and
economies. To offset the reduction in Japanese industrial holdings, we have
added high-quality asset-backed commercial paper (short-term securities backed
by a pool of loans or other debt). These holdings provide above-average returns
with low credit risk characteristics due to the over-collateralized and
credit-enhanced nature of these issues.
[pie charts]
PORTFOLIO COMPOSITION BY SECURITY TYPE (as of 2/28/98)
Commercial Paper 70%
Variable-Rate Notes 17%
Asset-Backed Securities 7%
CDs 4%
Other 2%
PORTFOLIO COMPOSITION BY SECURITY TYPE (as of 8/31/97)
Commercial Paper 71%
Variable-Rate Notes 18%
U.S. Government
Agency Securities 7%
CDs 3%
Asset-Backed Securities 1%
ANNUAL REPORT MANAGEMENT Q & A 5
MANAGEMENT Q&A
IN THE PAST YOU DISCUSSED ADDING ASSET-BACKED SECURITIES TO ENHANCE THE FUND'S
YIELD. WHAT OTHER STRATEGIES HAVE YOU EMPLOYED TO MAINTAIN THE FUND'S
ABOVE-AVERAGE YIELD?
We continued to search for attractively valued variable-rate notes (VRNs).
VRNs are debt securities whose interest rates change when a designated base rate
changes. Their yields are typically higher than fixed-rate securities. When
choosing VRNs, a primary factor we consider is how the market anticipates Fed
actions and how that affects short-term interest rates. For example, some VRNs
are tied to the London Interbank Offered Rate (LIBOR), a money market rate that
most banks and corporations track when determining the rate they'll pay to
investors on short-term debt. Others are tied to the federal funds rate, the
lending rate targeted by the Fed for large overnight loans between commercial
banks. The yields on LIBOR-related securities tend to anticipate Fed actions,
rising before interest rate hikes and falling in advance of rate cuts. When we
believe the Fed is poised to raise interest rates, we typically choose
securities tied to LIBOR to capture the higher yields as early as possible.
Conversely, when we think that the Fed is poised to reduce rates, we lean toward
VRNs tied to the federal funds rate because their yields typically stay higher
longer than the yields of LIBOR-related securities.
WHAT'S YOUR OUTLOOK FOR INTEREST RATES OVER THE NEXT SIX MONTHS?
We believe rates should remain stable over the near term, though market
sentiment is currently divided. On one hand, the strength of the U.S.
economy--as evidenced by very low unemployment, strong retail sales and low
inventories--has the potential to re-ignite inflationary pressures and force the
Fed to raise rates. On the other hand, we don't know if the economic slowdown in
Southeast Asia has had its full impact on the U.S. economy. If problems in Asia
translate into slower U.S. economic growth, the Fed could cut rates.
GIVEN THAT OUTLOOK, 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
there is definitive and sustained evidence of the direction of U.S. economic
growth, inflation and interest rates. Additionally, we'll look for attractively
priced commercial paper backed by U.S. industrial companies to diversify away
from financial services and bank holdings.
Another factor that could have a slight impact on future performance is a
scheduled change in the fund's management fee. As we've mentioned in past
reports, Prime has benefited from a fee waiver that capped expenses at 0.50% of
average daily net assets. This fee waiver expires on May 31, 1998, and the fee
will rise 0.10% to 0.60%. The slightly higher fee could cause a small decline in
the fund's yield. We anticipate no further fee increases in the near future.
[pie charts]
PORTFOLIO COMPOSITION BY CREDIT RATING (as of 2/28/98)
A-1+ 72%
A-1 28%
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%
Credit ratings given by Standard & Poor's.
6 MANAGEMENT Q & A AMERICAN CENTURY INVESTMENTS
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1998
Principal Amount Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER(1)
BANKING--17.4%
$32,000,000 Abbey National North America
Corp., 5.43%-5.50%,
3/31/98-4/21/98 $ 31,816,109
20,500,000 Bank of Nova Scotia,
5.43%-5.45%, 4/8/98-4/9/98 20,380,836
15,000,000 Bankers Trust New York Corp.,
5.37%, 7/15/98 14,695,700
20,000,000 Banque Nationale de Paris
(Canada), 5.48%-5.73%,
3/9/98-4/13/98 19,921,811
39,000,000 BIL North America, Inc.,
5.45%-5.46%,
3/25/98-5/13/98 38,754,164
10,000,000 Cofco Capital Corp., 5.75%,
3/5/98 (LOC: Credit Suisse
First Boston) 9,993,611
7,000,000 Galicia Funding Corp., Series B,
5.78%, 3/4/98 (LOC:
Bayerische Vereinsbank A.G.) 6,996,628
50,000,000 Garanti Funding Corporation,
5.40%-5.58%,
3/4/98-7/27/98
(LOC: Bayerische
Vereinsbank A.G.) 49,477,953
12,850,000 IMI Funding Corp. (U.S.A.),
5.75%, 3/2/98-3/18/98 12,833,381
12,000,000 National Australia Funding
(Delaware), Inc., 5.43%,
4/21/98 11,907,690
8,000,000 Pemex Capital, Inc., 5.58%,
4/22/98 (LOC: Societe
Generale) 7,935,520
20,000,000 Westdeutsche Landesbank
Girozentrale, 5.47%, 4/2/98 19,902,756
-----------------
244,616,159
-----------------
CREDIT CARD & TRADE RECEIVABLES--10.8%
1,000,000 Charta Corporation, 5.50%,
3/19/98 (AMBAC) (Acquired
2/13/98, Cost $994,806)(2) 997,250
Principal Amount Value
- --------------------------------------------------------------------------------
$57,290,000 Corporate Receivables Corp.,
5.45%-5.53%,
3/5/98-5/21/98
(LOC: Citibank, N.A.)
(Acquired 1/6/98 through
2/18/98, Cost $56,664,617)(2) $ 56,916,385
60,200,000 Dakota Certificates (Citibank),
Series 1995-7, 5.46%-5.75%,
3/3/98-5/18/98 (Acquired
12/22/97 through 2/18/98,
Cost $59,470,173)(2) 59,876,826
35,000,000 WCP Funding Inc., 5.43%-5.47%,
4/7/98-4/24/98 (AMBAC)
(Acquired 1/15/98 through
1/29/98, Cost $34,565,410)(2) 34,778,429
-----------------
152,568,890
-----------------
COMMUNICATIONS SERVICES--0.4%
5,000,000 Ameritech Capital Funding Corp.,
5.43%, 4/10/98 4,969,834
-----------------
DIVERSIFIED COMPANIES--3.1%
44,000,000 Mitsubishi International Corp.,
5.50%-5.65%,
4/20/98-5/20/98 43,539,167
-----------------
FINANCIAL SERVICES--14.6%
47,000,000 Ford Motor Credit Co. Puerto Rico,
Inc., 5.45%-5.53%,
4/9/98-5/15/98 46,635,558
39,500,000 General Electric Capital Corp.,
5.37%-5.68%, 3/2/98-6/5/98 39,232,257
24,000,000 General Electric Capital Services,
Inc., 5.47%, 4/3/98-4/14/98 23,856,260
45,000,000 General Electric Financial
Assurance Holdings,
5.47%-5.49%,
3/6/98-3/13/98 44,933,863
24,100,000 General Motors Acceptance Corp.,
5.46%-5.75%,
3/10/98-4/20/98 23,944,485
27,000,000 Toyota Motor Credit Corp.,
5.73%-5.77%,
3/3/98-3/27/98 26,953,168
-----------------
205,555,591
-----------------
HOUSEHOLD AUDIO & VIDEO--0.9%
12,313,000 Panasonic Finance America, 5.54%,
3/6/98 (Acquired 10/9/97,
Cost $12,032,565)(2) 12,303,525
-----------------
See Notes to Financial Statements
ANNUAL REPORT SCHEDULE OF INVESTMENTS 7
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1998
Principal Amount Value
- --------------------------------------------------------------------------------
INSURANCE--2.7%
$ 9,400,000 American Family Financial Services,
Inc., 5.47%, 3/5/98 9,394,287
8,500,000 Prudential Funding Corp., 5.47%,
4/14/98 8,443,173
20,000,000 SAFECO Corporation,
5.47%-5.76%,
3/12/98-4/15/98
(Acquired 12/15/97-1/15/98,
Cost $19,725,650)(2) 19,914,025
---------------
37,751,485
---------------
METALS & MINING--0.6%
9,000,000 RTZ America Inc., 5.53%,
3/20/98 (Acquired 9/19/97,
Cost $8,748,385)(2) 8,973,733
---------------
PETROLEUM REFINING--4.2%
18,900,000 Chevron Transport Corp.,
5.44%-5.50%,
3/18/98-6/16/98 18,715,196
40,000,000 Chevron U.K. Investment PLC,
5.43%-5.75%,
3/10/98-4/6/98 39,861,109
---------------
58,576,305
---------------
RETAIL--0.7%
10,133,000 Southland Corp., 5.45%, 4/21/98 10,054,765
---------------
RUBBER & PLASTICS--1.0%
15,000,000 Formosa Plastics Corp. USA,
5.50%, 6/4/98 (LOC: Bank of
America N.T. & S.A.) 14,782,292
---------------
SECURITY BROKERS & DEALERS--12.8%
10,000,000 Bear Stearns Co., Inc., 5.46%,
5/13/98 9,889,283
40,000,000 Credit Suisse First Boston, Inc.,
5.41%-5.46%,
4/22/98-5/19/98 39,623,977
37,000,000 Goldman Sachs Group L.P.,
5.43%-5.70%,
5/4/98-5/11/98 36,604,707
45,000,000 Merrill Lynch & Co., Inc.,
5.46%-5.73%,
3/9/98-7/31/98 44,436,373
Principal Amount Value
- --------------------------------------------------------------------------------
$51,000,000 Morgan Stanley Dean Witter,
Discover & Co., 5.40%-5.49%,
4/17/98-7/29/98 $ 50,332,075
---------------
180,886,415
---------------
UTILITIES--0.7%
10,000,000 National Rural Utilities, 5.45%,
4/15/98 9,931,875
---------------
TOTAL COMMERCIAL PAPER--69.9% 984,510,036
---------------
OTHER CORPORATE DEBT
25,000,000 Abbey National Treasury Services,
VRN, 5.51%, 3/16/98, resets
monthly off the 1-month LIBOR
minus 0.12% with no caps 24,995,296
20,000,000 American Express Centurion Bank,
VRN, 5.57%, 3/11/98, resets
monthly off the 1-month LIBOR
minus 0.06% with no caps 20,000,000
15,000,000 American Express Centurion Bank,
VRN, 5.60%, 3/12/98, resets
monthly off the 1-month LIBOR
minus 0.03% with no caps 15,000,546
50,000,000 General American Life,
VRN, 5.82%, 3/1/98, 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
25,000,000 General Electric Capital Corp., VRN,
5.54%, 4/21/98, resets quarterly
off the 3-month LIBOR minus
0.09% with no caps 25,000,000
15,000,000 Key Bank N.A., VRN, 5.68%,
3/1/98, resets daily off the
Federal Funds rate plus 0.07%
with no caps 14,996,126
47,000,000 Transamerica Occidental Life Insurance Co.,
VRN, 5.625%, 3/2/98, 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 Travelers Insurance Company (The),
VRN, 5.68%, 3/9/98, 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
See Notes to Financial Statements
8 SCHEDULE OF INVESTMENTS AMERICAN CENTURY INVESTMENTS
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 1998
Principal Amount Value
- --------------------------------------------------------------------------------
$23,500,000 Travelers Insurance Company (The),
VRN, 5.68%, 3/23/98, 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--16.5% 232,191,968
---------------
ASSET-BACKED SECURITIES
23,500,000 ABSIT, VRN, Series 1997 C, Class N,
5.625%, 3/16/98, resets monthly
off the 1-month LIBOR
with no caps
(LOC: Goldman Sachs Group L.P.)
(Acquired 6/11/97,
Cost $23,500,000)(2) 23,500,000
5,903,334 Americredit Automobile Receivables
Trust, Series 1997 C, Class A1,
5.66%, 9/5/98 (FSA) 5,903,334
7,349,378 Americredit Automobile Receivables
Trust, Series 1997 D, Class A1,
5.80%, 11/5/98 (FSA) 7,349,378
3,251,427 Barnett Auto Trust, Series 1997 A,
Class A1, 5.65%, 10/15/98
(Acquired 9/18/97, Cost
$3,251,427)(2) 3,251,427
10,315,769 Capita Equipment Receivables
Trust, Series 1997-1, Class A1,
5.79%, 12/15/98 10,315,769
11,000,000 Chase Manhattan Auto Owner Trust,
Series 1998 A,
Class A1, 5.55%, 3/12/99 11,000,000
5,245,042 Ford Credit Auto Owner Trust,
Series 1997 B,
Class A1, 5.75%, 10/15/98 5,245,042
20,000,000 Ford Credit Auto Owner Trust,
Series 1998 A,
Class A1, 5.55%, 2/15/99 20,000,000
14,000,000 Racers Series 1997-MM-8-5, VRN,
5.61%, 3/30/98, resets monthly
off the 1-month LIBOR minus
0.02% with no caps (LOC:
National Westminster Bank PLC)
(Acquired 8/29/97, Cost
$14,000,000)(2) 14,000,000
---------------
TOTAL ASSET-BACKED SECURITIES--7.1% 100,564,950
---------------
CERTIFICATES OF DEPOSIT
$10,000,000 Chase Manhattan Corp., 5.56%,
7/7/98 $ 10,000,000
20,000,000 Bayerische Landesbank
Girozentrale, 5.66%, 2/22/99 20,000,000
13,000,000 Rabobank Nederland,
5.43%-5.99%,
3/24/98-1/12/99 12,980,541
14,000,000 Royal Bank of Canada - New York,
5.55%, 2/11/99 13,992,167
---------------
TOTAL CERTIFICATES OF DEPOSIT--4.0% 56,972,708
---------------
BANK NOTES--2.5%
35,000,000 BankBoston Corp., 5.59%-5.83%,
4/9/98-7/8/98 35,000,000
---------------
TOTAL INVESTMENT SECURITIES--100.0% $1,409,239,662
---------------
NOTES TO SCHEDULE OF INVESTMENTS
AMBAC = AMBAC Assurance Corporation
FSA = Financial Security Assurance Inc.
LIBOR = London Interbank Offered Rate
LOC = Letter of Credit
VRN = Variable Rate Note. Interest reset date is indicated and used in
calculating the weighted average portfolio maturity. Rate shown is
effective February 28, 1998.
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.
(1) The rates for commercial paper represent the yield to maturity at purchase
(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 February 28, 1998, was
$366,711,600, which represented 25.9% of net assets. Restricted securities
which were illiquid represented 5.1% of net assets.
See Notes to Financial Statements
ANNUAL REPORT SCHEDULE OF INVESTMENTS 9
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1998
ASSETS
Investment securities, at value (amortized cost and
cost for federal income tax purposes) (Note 1) ............... $1,409,239,662
Cash ........................................................... 12,464,116
Interest receivable ............................................ 1,906,726
---------------
1,423,610,504
---------------
LIABILITIES
Disbursements in excess of demand deposit cash ................. 4,193,481
Payable for capital shares redeemed ............................ 1,365,778
Accrued management fees (Note 2) ............................... 543,835
Dividends payable .............................................. 195,084
Accrued expenses and other liabilities ......................... 1,639
---------------
6,299,817
---------------
Net Assets ..................................................... $1,417,310,687
===============
CAPITAL SHARES
Outstanding (Unlimited number of shares authorized)
1,417,565,184
===============
Net Asset Value Per Share ...................................... $1.00
===============
NET ASSETS CONSIST OF:
Capital paid in
$1,417,565,184
Accumulated undistributed net realized loss on
investment transactions ...................................... (254,497)
---------------
$1,417,310,687
===============
See Notes to Financial Statements
10 STATEMENT OF ASSETS AND LIABILITIES AMERICAN CENTURY INVESTMENTS
STATEMENT OF OPERATIONS
YEAR ENDED FEBRUARY 28, 1998
INVESTMENT INCOME
Income:
Interest ....................................................... $73,727,79
---------------
Expenses (Note 2):
Investment advisory fees ....................................... 6,282,235
Transfer agency fees ........................................... 765,989
Administrative fees ............................................ 476,721
Printing and postage ........................................... 255,358
Custodian fees ................................................. 92,513
Trustees' fees and expenses .................................... 66,163
Telephone expenses ............................................. 58,663
Registration and filing fees ................................... 52,224
Auditing and legal fees ........................................ 23,907
Other operating expenses ....................................... 20,676
---------------
Total expenses ............................................... 8,094,449
Amount waived .................................................. (1,590,729)
---------------
Net expenses ................................................. 6,503,720
---------------
Net investment income .......................................... 67,224,070
---------------
REALIZED GAIN ON INVESTMENTS
Net realized gain on investments ............................... 24,038
---------------
Net Increase in Net Assets
Resulting from Operations .................................... $67,248,108
===============
See Notes to Financial Statements
ANNUAL REPORT STATEMENT OF OPERATIONS 11
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED FEBRUARY 28, 1998 AND FEBRUARY 28, 1997
Increase (Decrease) in Net Assets 1998 1997
OPERATIONS
Net investment income ........................ $67,224,070 $61,135,898
Net realized gain (loss) on investments ...... 24,038 (278,535)
-------------- ---------------
Net increase in net assets resulting
from operations ............................ 67,248,108 60,857,363
-------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................... (67,224,070) (61,135,898)
-------------- ---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .................... 2,330,994,339 1,722,837,328
Proceeds from reinvestment of distributions .. 63,902,564 58,408,826
Payments for shares redeemed .................(2,189,600,577) (1,839,630,699)
-------------- ---------------
Net increase (decrease) in net assets
from capital share transactions ............ 205,296,326 (58,384,545)
-------------- ---------------
Net increase (decrease) in net assets ........ 205,320,364 (58,663,080)
NET ASSETS
Beginning of year ............................ 1,211,990,323 1,270,653,403
-------------- ---------------
End of year .................................. $1,417,310,687 $1,211,990,323
============== ===============
TRANSACTIONS IN SHARES
OF THE FUND
Sold ......................................... 2,330,994,339 1,722,837,328
Issued in reinvestment of distributions ...... 63,902,564 58,408,826
Redeemed ..................................... (2,189,600,577) (1,839,630,699)
-------------- ---------------
Net increase (decrease) ...................... 205,296,326 (58,384,545)
============== ===============
See Notes to Financial Statements
12 STATEMENTS OF CHANGES IN NET ASSETS AMERICAN CENTURY INVESTMENTS
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1998
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 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. On March 9,
1998, the Board of Trustees approved the merger of the Fund and American Century
- - Benham Cash Reserve Fund. 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 accretion of discounts and amortization of premiums. Discounts and
premiums are accreted/ 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.
At February 28, 1998, accumulated net realized capital loss carryovers of
$254,497 (expiring 2005) may be used to offset future taxable gains.
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.
ADDITIONAL INFORMATION-Effective January 15, 1998, Funds Distributor, Inc.
(FDI) became the Trust's distributor. Certain officers of FDI are also officers
of the Trust.
ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS 13
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1998
2. TRANSACTIONS WITH RELATED PARTIES
The shareholders of the Fund approved a new management agreement with
American Century Investment Management, Inc. (ACIM) on July 30, 1997, effective
August 1, 1997, which replaced the previously existing contracts between the
Fund and Benham Management Corporation and American Century Services Corporation
(ACSC) for advisory, administrative and transfer agency services. Under the new
agreement, ACIM provides all services required by the Fund in exchange for a
unified management fee. Expenses excluded from this agreement are brokerage,
taxes, portfolio insurance, interest, fees and expenses of the Trustees who are
not considered "interested persons" as defined in the Investment Company Act of
1940 (including counsel fees) and extraordinary expenses. 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 net 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 Fund is in the Money Market Fund
Category. Second, a separate fee rate schedule is applied to the net 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 until May 31, 1998. Total expenses of $4,730,735, of which
$805,481 were waived by ACIM, were incurred under the new management agreement
and are included in Investment Advisory Fees in the Statement of Operations.
Total 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%.
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, ACIM, the Trust's
transfer agent, ACSC, and the registered broker-dealer, American Century
Investment Services, Inc.
14 NOTES TO FINANCIAL STATEMENTS AMERICAN CENTURY INVESTMENTS
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Years Ended February 28 (except as noted)
1998 1997 1996(1) 1995 1994(2)
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 .................... 0.05 0.05 0.06 0.05 0.01
---------- ---------- ---------- ---------- ----------
Distributions
From Net Investment Income ............... (0.05) (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(3) .......................... 5.29% 5.04% 5.60% 4.93% 0.96%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets. ..................... 0.50% 0.50% 0.48% 0.04% --
Ratio of Operating Expenses to Average
Net Assets (Before Expense Waiver) ......... 0.63% 0.63% 0.62% 0.71% 1.49%(4)
Ratio of Net Investment Income to
Average Net Assets ......................... 5.17% 4.92% 5.43% 5.28% 3.35%(4)
Ratio of Net Investment Income to Average
Net Assets (Before Expense Waiver) ......... 5.04% 4.79% 5.29% 4.61% 1.86%(4)
Net Assets, End
of Period (in thousands) ...................$1,417,311 $1,211,990 $1,270,653 $1,509,863 $75,168
- ----------
(1) Year ended February 29, 1996.
(2) November 17, 1993 (inception) through February 28, 1994.
(3) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.
(4) Annualized.
</TABLE>
See Notes to Financial Statements
ANNUAL REPORT FINANCIAL HIGHLIGHTS 15
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of the American Century - Benham Prime Money
Market Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of American Century - Benham Prime Money Market
Fund as of February 28, 1998, and the related statement of operations, statement
of changes in net assets, and the financial highlights for the year then ended.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. The statement
of changes in net assets for the year ended February 28, 1997 and the financial
highlights for the four years in the period ended February 28, 1997, were
audited by other auditors, whose report, dated April 4, 1997, expressed an
unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of February 28, 1998, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
American Century - Benham Prime Money Market Fund as of February 28, 1998, the
results of its operations, the changes in its net assets and the financial
highlights for the year then ended in conformity with generally accepted
accounting principles.
Coopers & Lybrand L.L.P.
Kansas City, Missouri
April 7, 1998
16 REPORT OF INDEPENDENT ACCOUNTANTS AMERICAN CENTURY INVESTMENTS
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.
ANNUAL REPORT RETIREMENT ACCOUNT INFORMATION 17
NOTES
18 NOTES AMERICAN CENTURY INVESTMENTS
NOTES
ANNUAL REPORT NOTES 19
BACKGROUND INFORMATION
INVESTMENT PHILOSOPHY & POLICIES
The Benham Group offers 39 fixed-income funds, ranging from money market
funds to long-term bond funds and including both taxable and tax-exempt funds.
Each fund is managed to provide a "pure play" on a specific sector of the
fixed-income market. To ensure adherence to this principle, the basic structure
of each fund's portfolio is tied to a specific market index. Fund managers
attempt to add value by making modest portfolio adjustments based on their
analysis of prevailing market conditions. Investment decisions are made by
management teams, which meet regularly to discuss market analysis and investment
strategies.
In addition to these principles, each fund has its own investment policies:
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 15.
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 ISSUERS--the number of entities which issued securities and are held
by a fund on a given date.
* WEIGHTED AVERAGE MATURITY (WAM)--a measure 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.
* VARIABLE-RATE NOTES (VRNS)--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). VRNs are
considered derivatives because they "derive" their interest rates from their
designated base rates. However, VRNs 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 VRNs 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.
ANNUAL REPORT GLOSSARY 21
[american century logo(reg.sm)]
American
Century (reg.tm)
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.
(c) 1998 AMERICAN CENTURY SERVICES CORPORATION
FUNDS DISTRIBUTOR, INC.
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SH-BKT-12007 Recycled
