August 31, 2000
AMERICAN CENTURY(reg.sm)
SEMIANNUAL REPORT
Prime Money Market
[american century logo and text logo (reg.sm)]
American
Century
[inside front cover]
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[left margin]
PRIME MONEY MARKET
(BPRXX)
----------------------
TURN TO THE INSIDE BACK COVER OF THIS REPORT TO SEE A LIST OF AMERICAN CENTURY
FUNDS CLASSIFIED BY OBJECTIVE AND RISK.
Here's a Prime Opportunity for You and Your Business
--------------------------------------------------------------------------------
An American Century business retirement plan is more than a financial tool
for you and your employees. It's a powerful business tool that puts your company
on firm footing for the future. Because when you have the right retirement plan,
it's easier to attract -- and easier to retain -- the kind of employees you need
to be sure your company thrives.
Call 1-877-726-2368 EXT . 9521, to talk with a Business Retirement Services
representative about the broad range of plans we offer. Or go to
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Our Message to You
--------------------------------------------------------------------------------
[photo of James E. Stowers, Jr. and James E. Stowers III]
James E. Stowers, Jr., standing, with James E. Stowers III
We're proud to report that the Prime Money Market fund continued to perform
well in the six months ended August 31, 2000. Money market fund yields rose
during the summer because the Federal Reserve increased interest rates to try to
slow U.S. economic growth and fight inflation. Those rate hikes appear to have
been successful--demand for goods and services slowed, while inflation remained
modest. As a result, interest rates--and money market yields--stabilized. Our
investment professionals review the period in more detail on page 4.
Turning to corporate matters, Chase Manhattan Corp. recently announced
plans to acquire J.P. Morgan & Co., which became a substantial minority
shareholder in American Century Companies, Inc. in 1998. If the transaction is
completed as expected, J.P. Morgan Chase, the new enterprise, will own the
shares of American Century currently held by Morgan. Corporate control of
American Century is not affected by this transaction. We will be exploring ways
to partner with J.P. Morgan Chase for the benefit of fund shareholders.
In other corporate news, some American Century executives have assumed
important new responsibilities. For example, we chose to divide the chairman of
the board position between the two of us and named American Century President
William M. Lyons chief executive officer, giving him ultimate management
responsibility for the entire company.
These changes, plus the promotion of some key investment professionals,
strengthen the leadership of our investment management area and allow us to
pursue other worthwhile endeavors. For example, Jim Stowers III will focus more
on product innovation (in particular, leveraging our earnings-acceleration
screening system to build the next generation of portfolio management
technologies). However, he'll continue to serve on the investment teams for the
Ultra and Veedot funds.
As always, we appreciate your continued confidence in American Century.
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 Co-Chairman of the Board
[right margin]
Table of Contents
Frequently Asked
Questions ............................................................ 2
PRIME MONEY MARKET
Performance Information ................................................ 3
Portfolio at a Glance .................................................. 3
Yields ................................................................. 3
Management Q&A ......................................................... 4
Portfolio Composition
by Credit Rating .................................................... 4
Types of Investments ................................................... 4
Schedule of Investments ................................................ 5
FINANCIAL STATEMENTS
Statement of Assets and
Liabilities ......................................................... 8
Statement of Operations ................................................ 9
Statement of Changes
in Net Assets ....................................................... 10
Notes to Financial
Statements .......................................................... 11
Financial Highlights ................................................... 13
OTHER INFORMATION
Share Class and Retirement
Account Information ................................................. 15
Background Information
Investment Philosophy
and Policies ..................................................... 16
Comparative Indices ................................................. 16
Lipper Rankings ..................................................... 16
Credit Rating
Guidelines ....................................................... 16
Investment Team
Leaders .......................................................... 16
Glossary ............................................................... 17
www.americancentury.com 1
Money Market Funds--Frequently Asked Questions
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CAN I MAKE DIRECT DEPOSITS INTO MY MONEY MARKET FUND ACCOUNT?
Yes. You can arrange for direct deposit of your paycheck, Social Security
check, military allotment, or payments from other government agencies. Give us a
call, and we will send you the necessary information to set it up.
WHAT IS THE HOLDING PERIOD ON NEW DEPOSITS INTO MY ACCOUNT?
There is a 10-business-day holding period for deposited funds--including
your initial investment in a new account. There is a one-business-day holding
period for wire transfers.
IS THERE A COST FOR WRITING CHECKS ON MY MONEY MARKET ACCOUNT?
As long as each check is for $100 or more, you can write as many checks as
you like at no charge.
HOW CAN I KEEP TRACK OF MY MONEY MARKET FUND TRANSACTIONS BETWEEN ACCOUNT
STATEMENTS?
You can access your investments any time through our automated telephone
line and the American Century Web site. These services provide fund yields,
returns, account information, and transaction services.
You can keep tabs on your investments by:
* visiting our Web site at
www.americancentury.com*
* using our Automated Information Line (1-800-345-8765)*
* calling an Investor Relations Representative at 1-800-345-2021* weekdays,
7 a.m.-7 p.m. Central time Saturdays, 9 a.m.-2 p.m. Central time
WHY DOES MY MONEY FUND YIELD FLUCTUATE?
Money market funds are managed to maintain a stable $1 share price, but
their yields will fluctuate with changes in market conditions. Common reasons
for changes in your fund's yield are adjustments to Federal Reserve interest
rate policy, the outlook for inflation, and supply and demand for money market
securities.
Keep in mind that no money market fund is guaranteed or insured by the U.S.
government. And although money market funds are intended to preserve the value
of your investment at $1 per share, there's no guarantee that they'll be able to
do so.
IF YOU HAVE ANY QUESTIONS ABOUT OUR MONEY MARKET FUNDS, CALL US TOLL FREE AT
1-800-345-2021 OR E-MAIL US AT OUR WEB SITE, WWW.AMERICANCENTURY.COM.
* We must have your written authorization on file if you wish to make exchanges
by phone, on our Automated Information Line, or through our Web site.
[left margin]
A FASTER AND EASIER WAY TO DEPOSIT MUTUAL FUND DISTRIBUTIONS
If you prefer to have your fund dividend or capital gains distributions sent to
you instead of reinvesting them, there are a couple of ways to get access to
this money faster than waiting for a check in the mail:
* YOU CAN HAVE DISTRIBUTIONS DEPOSITED DIRECTLY INTO YOUR MONEY MARKET
ACCOUNT. The money will be deposited the same day that the distributions
are paid.
* DISTRIBUTIONS CAN BE SENT ELECTRONICALLY TO YOUR BANK ACCOUNT. The money
will be available in your bank account within three to five days.
Contact our Investor Relations Representatives to set up either of these
options.
2 1-800-345-2021
Prime Money Market--Performance
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TOTAL RETURNS AS OF AUGUST 31, 2000
<TABLE>
INVESTOR CLASS (INCEPTION 11/17/93) ADVISOR CLASS (INCEPTION 8/28/98)
PRIME 90-DAY TREASURY MONEY MARKET INSTRUMENT FUNDS(2) PRIME 90-DAY TREASURY
MONEY MARKET BILL INDEX AVERAGE RETURN FUND'S RANKING MONEY MARKET BILL INDEX
==================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
6 MONTHS(1) 2.97% 2.96% 2.82% -- 2.85% 2.96%
1 YEAR 5.64% 5.62% 5.32% 83 OUT OF 360 5.38% 5.62%
==================================================================================================================
AVERAGE ANNUAL RETURNS
3 YEARS 5.22% 5.09% 4.91% 57 OUT OF 288 -- --
5 YEARS 5.20% 5.13% 4.94% 51 OUT OF 245 -- --
LIFE OF FUND 5.13% 5.04%(3) 4.83%(3) 22 OUT OF 189(3) 4.92% 5.07%(4)
</TABLE>
(1) Returns for periods less than one year are not annualized.
(2) According to Lipper Inc., an independent mutual fund ranking service.
(3) Since 11/30/93, the date nearest the class's inception for which data are
available.
(4) Since 8/31/98, the date nearest the class's inception for which data are
available.
See pages 15-17 for information about share classes, returns, the comparative
index, and Lipper fund rankings.
PORTFOLIO AT A GLANCE
AS OF 8/31/00
NET ASSETS $2.9 BILLION
8/31/00 2/29/00
NUMBER OF ISSUERS 66 69
WEIGHTED AVERAGE
MATURITY 74 DAYS 57 DAYS
EXPENSE RATIO (FOR
INVESTOR CLASS) 0.59%* 0.60%
* Annualized.
YIELDS AS OF AUGUST 31, 2000
INVESTOR CLASS
7-DAY CURRENT YIELD 6.13%
7-DAY EFFECTIVE YIELD 6.31%
Investment terms are defined in the Glossary on pages 17-18.
Past performance does not guarantee future results.
Money market funds are neither insured nor guaranteed by the FDIC or any other
government agency.
Yields will fluctuate, and although the fund seeks to preserve the value of your
investment at $1 per share, it is possible to lose money by investing in the
fund. The 7-day yield more closely reflects earnings of the fund than the total
return.
www.americancentury.com 3
Prime Money Market--Q&A
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[photo of Denise Tabacco]
An interview with Denise Tabacco, a portfolio manager on the Prime Money
Market fund investment team.
HOW DID PRIME MONEY MARKET PERFORM DURING THE SIX MONTHS ENDED AUGUST 31, 2000?
The portfolio performed well, providing shareholders stability during a
volatile period in U.S. financial markets. Prime's total return was 2.97%,
beating the 2.82% average return of the 371 "Money Market Instrument Funds"
tracked by Lipper Inc.* In addition, Prime's longer-term performance ranks in
the top 25% of the Lipper group (see the previous page).
Prime also provided shareholders more income than the average money market
fund. Prime's 7-day current yield on August 31 was 6.13%. That's up from 5.43%
just six months ago. By comparison, the average yield of the funds in the Lipper
group was 5.96% at the end of August.
WHY DID PRIME MONEY MARKET'S YIELD RISE?
There are two key reasons for the increase in Prime's yield. First, the
Federal Reserve (the Fed) raised short-term interest rates to cool the economy
and keep a lid on inflation. Second, we added some higher-yielding one-year
securities in the second quarter of the year.
LET'S FOCUS ON FED RATE POLICY. HOW DOES IT RELATE TO MONEY MARKET YIELDS?
By raising interest rates, the Fed increases borrowing costs for consumers
and corporations. That means companies and other borrowers have to pay more
interest on the short-term debt they issue. Because this debt makes up the pool
of money market securities we invest in (see page 17 for examples and
definitions of money market securities), higher rates help boost money market
fund yields.
In the six-month period, the Fed raised interest rates twice. Those
increases account for much of the gain in Prime's yield.
WHAT CHANGES DID YOU MAKE TO ADD YIELD TO THE FUND?
We bought some one-year securities with very attractive yields in May and
June--after the Fed was done raising rates. Yields on one-year securities rose
sharply in the second quarter because investors expected further rate increases.
But we thought market expectations for interest rates had gone too far and that
the yields available on these securities were just too good to pass up.
WHAT'S YOUR OUTLOOK FOR THE FUND'S YIELD?
We think it's likely that the Fed's work on interest rates is done for the
rest of the year because economic growth has begun to moderate. As a result, we
believe money market yields may have already peaked. However, we'll continue to
try to add yield by looking for higher-yielding one-year securities.
* All fund returns and yields referenced in this interview are for Investor
Class shares.
[left margin]
PORTFOLIO COMPOSITION BY
CREDIT RATING
% OF FUND INVESTMENTS
AS OF AS OF
8/31/00 2/29/00
A-1+ 80% 75%
A-1 20% 24%
A-2 -- 1%
Ratings provided by Standard & Poor's. See Credit Rating Guidelines on page 16
for more information.
[pie charts - data below]
TYPES OF INVESTMENTS IN
THE PORTFOLIO
AS OF AUGUST 31, 2000
COMMERCIAL PAPER 69%
CDS 13%
VARIABLE-RATE NOTES 11%
OTHER 7%
AS OF FEBRUARY 29, 2000
COMMERCIAL PAPER 68%
CDS 12%
VARIABLE-RATE NOTES 13%
OTHER 7%
Investment terms are defined in the Glossary on pages 17-18.
4 1-800-345-2021
Prime Money Market--Schedule of Investments
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AUGUST 31, 2000 (UNAUDITED)
Principal Amount Value
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COMMERCIAL PAPER(1) -- 68.6%
$ 25,000,000 Aegon Funding Corp., 6.30%,
9/25/00 (Acquired 3/29/00,
Cost $24,213,125)(2) $ 24,895,084
20,000,000 Aegon N.V., 6.62%, 12/14/00 19,617,511
79,000,000 Allianz of America Inc.,
6.50%-6.55%,
10/12/00-11/20/00
(Acquired 7/6/00-8/16/00,
Cost $77,626,402)(2) 78,155,783
10,000,000 American Family Financial
Services, Inc., 6.07%, 9/14/00 9,978,080
25,000,000 Banco Gen de Negocios SA,
6.48%, 5/7/01 23,884,000
30,000,000 BMW U.S. Capital Corp., 6.59%,
9/5/00 29,978,034
20,000,000 Campbell Soup Co., 6.51%,
10/25/00 19,804,700
25,000,000 Chase Manhattan Corp., 6.47%,
11/9/00 24,689,979
20,000,000 Chevron Transport Corp., 6.64%,
10/5/00 (Acquired 6/7/00,
Cost $19,557,333)(2) 19,874,578
25,000,000 Citigroup Inc., 6.50%, 9/28/00 24,878,125
115,000,000 Corporate Receivables Corp.,
6.50%-6.55%,
9/13/00-12/7/00 (Acquired
7/7/00-8/9/00, Cost
$113,212,716)(2) 113,971,635
81,000,000 DaimlerChrysler AG,
6.50%-6.52%,
10/5/00-10/24/00 80,378,400
70,000,000 Dakota Certificates (Citibank),
6.51%-6.58%,
10/5/00-10/24/00 (Acquired
7/6/00-8/29/00, Cost
$68,947,061)(2) 69,433,328
35,000,000 Deutsche Bank Financial, Inc.,
6.52%, 12/29/00 34,245,672
127,000,000 Discover Card Master Trust I,
6.55%-6.67%,
10/4/00-11/17/00 (Acquired
7/6/00-8/18/00, Cost
$124,912,060)(2) 125,476,822
59,500,000 Equilon Enterprises LLC, 6.52%,
10/16/00 59,015,074
46,000,000 Falcon Asset Securities Corp.,
6.50%-6.55%,
12/21/00-1/19/01 (Acquired
8/15/00-8/21/00, Cost
$44,845,276)(2) 44,964,041
11,400,000 Florida Power & Light Co., 6.50%,
9/18/00 (Acquired 8/16/00,
Cost $11,332,075)(2) 11,365,008
48,000,000 Formosa Plastics Corp. USA,
6.52%-6.70%,
9/13/00-11/9/00 47,659,710
Principal Amount Value
--------------------------------------------------------------------------------
$ 75,000,000 Fortis Funding LLC,
6.53%-6.61%,
9/11/00-10/16/00 (Acquired
6/12/00-7/17/00, Cost
$73,756,966)(2) $ 74,545,972
17,600,000 Fuji Photo Film Finance USA,
6.54%, 10/26/00 17,424,147
36,000,000 Gannett Co., Inc., 6.49%,
11/21/00 (Acquired 8/9/00,
Cost $35,325,040)(2) 35,474,310
15,000,000 General Electric Capital Corp.,
6.56%, 3/1/01 14,505,267
25,000,000 General Electric Financial
Assurance Holdings, 6.52%,
10/11/00 (Acquired 7/24/00,
Cost $24,642,306)(2) 24,818,889
45,500,000 GMAC Mortgage Corp., 6.61%,
9/1/00 45,500,000
28,032,000 Halogen Capital Co. LLC, 6.52%,
9/18/00 (Acquired
8/22/00-8/25/00, Cost
$27,909,121)(2) 27,945,702
72,500,000 MBNA Credit Card Master Trust II,
6.56%, 9/25/00-9/26/00
(Acquired 7/24/00-7/31/00,
Cost $71,695,033)(2) 72,174,278
11,424,000 Metlife Funding Inc., 6.47%,
11/14/00 11,272,067
45,000,000 Motiva Enterprises LLC,
6.51%-6.63%,
9/1/00-9/19/00 44,934,900
74,000,000 Motorola, Inc., 6.51%-6.58%,
9/11/00-10/30/00 73,511,088
67,000,000 National Rural Utilities Cooperative
Finance Corp., 6.11%-6.62%,
9/27/00-12/14/00 66,323,361
105,448,000 Old Line Funding Corp.,
6.51%-6.53%,
9/6/00-10/6/00
(Acquired 7/20/00-8/17/00,
Cost $104,553,999)(2) 105,181,301
20,000,000 Park Avenue Receivables Corp.,
6.51%, 10/3/00 (Acquired
8/25/00, Cost $19,858,950)(2) 19,884,267
36,000,000 Pfizer, Inc., 6.45%, 9/15/00
(Acquired 8/10/00, Cost
$35,767,800)(2) 35,909,700
92,944,000 Receivables Capital Corp.,
6.50%-6.61%,
9/6/00-10/4/00 (Acquired
6/23/00-8/23/00, Cost
$92,084,275)(2) 92,658,820
70,000,000 Rio Tinto America Inc., 6.51%,
10/23/00-11/13/00
(Acquired 8/16/00-8/21/00,
Cost $68,990,950)(2) 69,170,879
92,019,000 Sand Dollar Funding LLC,
6.51%-6.62%,
9/20/00-12/11/00 (Acquired
6/14/00-8/24/00, Cost
$90,624,074)(2) 91,336,594
See Notes to Financial Statements www.americancentury.com 5
Prime Money Market--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
AUGUST 31, 2000 (UNAUDITED)
Principal Amount Value
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$ 48,600,000 Tannehill Capital Co. LLC,
6.58%-6.60%,
9/18/00-10/10/00 (Acquired
7/18/00-7/19/00, Cost
$47,930,620)(2) $ 48,327,706
35,000,000 Verizon Network Funding,
6.48%-6.50%,
9/28/00-10/17/00 34,778,300
70,000,000 WCP Funding Inc., 6.49%-6.52%,
9/8/00-10/19/00 (Acquired
7/21/00-8/14/00, Cost
$69,263,622)(2) 69,651,656
25,000,000 Windmill Funding Corp., 6.52%,
9/25/00 (Acquired 7/24/00,
Cost $24,714,750)(2) 24,891,333
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TOTAL COMMERCIAL PAPER 1,962,486,101
--------------
CERTIFICATES OF DEPOSIT -- 12.7%
45,000,000 Abbey National Treasury Services
PLC, 7.33%, 5/16/01 45,002,989
25,000,000 Bayerische Landesbank
Girozentrale (New York), 6.59%,
9/21/00 25,000,000
35,000,000 Deutsche Bank AG, 6.64%,
10/11/00 35,000,000
100,000,000 National Westminster Bank PLC
(New York), 6.79%-7.24%,
3/28/01-8/31/01 99,979,451
25,000,000 Rabobank Nederland NV, 6.45%,
1/5/01 24,995,896
25,000,000 Royal Bank of Canada (New York),
6.44%, 1/5/01 24,995,895
20,000,000 UBS AG/Stamford Branch, 6.97%,
8/2/01 19,994,493
10,000,000 Union Bank of California N.A.,
6.99%, 12/4/00 10,000,000
77,000,000 Westdeutsche Landesbank,
6.70%-7.10%,
9/29/00-5/3/01 77,000,000
--------------
TOTAL CERTIFICATES OF DEPOSIT 361,968,724
--------------
CORPORATE BONDS -- 9.6%
19,000,000 Bank of America N.A., VRN,
6.74%, 11/3/00, resets
quarterly off the 3-month LIBOR
plus 0.02% with no caps 19,008,043
20,000,000 Bank One Corp. MTN, Series H,
VRN, 6.89%, 9/5/00, resets
quarterly off the 3-month LIBOR
plus 0.02% with no caps 20,000,181
25,000,000 Bayerische Landesbank
Girozentrale (New York), VRN,
6.54%, 9/28/00, resets
monthly off the 1-month LIBOR
minus 0.08% with no caps 24,995,894
Principal Amount Value
--------------------------------------------------------------------------------
$ 45,000,000 Jackson National Life Insurance
Co., VRN, 6.83%, 9/9/00,
resets monthly off the 1-month
LIBOR plus 0.15% with no
caps (Acquired 6/9/00, Cost
$45,000,000)(2) $ 45,000,000
20,000,000 KeyBank N.A., VRN, 6.97%,
11/2/00, resets quarterly off the
3-month LIBOR plus 0.25%
with no caps 20,010,591
50,000,000 Transamerica Asset Funding Corp.,
VRN, 6.82%, 11/1/00, resets
quarterly off the 3-month LIBOR
plus 0.11% with no caps
(Acquired 11/9/99, Cost
$50,000,000)(2) 50,000,000
50,000,000 Travelers Insurance Company (The),
VRN, 6.65%, 9/22/00, resets
monthly off the 1-month LIBOR
plus 0.03% with no caps
(Acquired 5/22/00, Cost
$50,000,000)(2) 50,000,000
45,000,000 U.S. Bank NA Minnesota, VRN,
6.69%, 9/20/00, resets
monthly off the 1-month LIBOR
plus 0.07% with no caps 45,034,030
--------------
TOTAL CORPORATE BONDS 274,048,739
--------------
BANK NOTES -- 3.8%
83,000,000 Bank of America N.T. & S.A.,
6.30%-7.20%,
12/29/00-5/4/01 83,000,000
25,000,000 Citibank NA, 7.39%, 5/30/01 24,994,749
--------------
TOTAL BANK NOTES 107,994,749
--------------
ASSET-BACKED SECURITIES -- 3.0%
20,000,504 AmeriCredit Automobile
Receivables Trust,
Series 2000 B, Class A1 SEQ,
6.89%, 6/5/01 20,000,504
28,131,116 Associates Automobile
Receivables Trust,
Series 2000-1, Class A1 SEQ,
6.85%, 6/15/01 28,131,116
14,622,427 Household Automotive Trust,
Series 2000-2, Class A1 SEQ,
6.81%, 7/16/01 14,622,427
24,363,063 WFS Financial Owner Trust,
Series 2000 A, Class A1 SEQ,
6.28%, 3/20/01 24,363,063
--------------
TOTAL ASSET-BACKED SECURITIES 87,117,110
--------------
6 1-800-345-2021 See Notes to Financial Statements
Prime Money Market--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
AUGUST 31, 2000 (UNAUDITED)
Principal Amount Value
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY SECURITIES -- 2.3%
$ 15,000,000 FHLMC MTN, 6.50%, 1/19/01 $ 15,000,000
50,000,000 SLMA MTN, VRN, 6.75%,
9/5/00-9/7/00, resets
quarterly off the 3-month T-Bill
plus 0.43% with no caps 49,984,429
--------------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES 64,984,429
--------------
TOTAL INVESTMENT SECURITIES -- 100.0% $2,858,599,852
==============
NOTES TO SCHEDULE OF INVESTMENTS
FHLMC = Federal Home Loan Mortgage Corporation
LIBOR = London Interbank Offered Rate
MTN = Medium Term Note
resets = The frequency with which a 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.
SLMA = Student Loan Marketing Association
VRN = Variable Rate Note. Interest reset date is indicated and used in
calculating the weighted average portfolio maturity. Rate shown is effective
August 31, 2000.
(1) The rates for commercial paper are the yield to maturity at purchase.
(2) Security was purchased under Rule 144A or Section 4(2) of the Securities Act
of 1933 or is a private placement 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, 2000,
was $1,425,107,686 which represented 49.6% of net assets. Restricted
securities considered illiquid represent 5.0% of net assets.
See Notes to Financial Statements www.americancentury.com 7
Statement of Assets and Liabilities
--------------------------------------------------------------------------------
This statement breaks down the fund's ASSETS (such as securities, cash, and
other receivables) and LIABILITIES (money owed for securities purchased,
management fees, and other payables) as of the last day of the reporting period.
Subtracting the liabilities from the assets results in the fund's NET ASSETS.
For each class of shares, the net assets divided by shares outstanding is the
share price, or NET ASSET VALUE PER SHARE. This statement also breaks down the
fund's net assets into capital (shareholder investments) and performance
(investment income and gains/losses).
AUGUST 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investment securities, at value (amortized
cost and cost for federal income
tax purposes) ......................................... $ 2,858,599,852
Cash .................................................... 1,877,489
Interest receivable ..................................... 12,837,284
---------------
2,873,314,625
---------------
LIABILITIES
Accrued management fees (Note 2) ........................ 1,443,183
Distribution fees payable (Note 2) ...................... 1,246
Service fees payable (Note 2) ........................... 1,246
Dividends payable ....................................... 17,384
Payable for trustees' fees and expenses ................. 5,868
Accrued expenses and other liabilities .................. 4,050
---------------
1,472,977
---------------
Net Assets .............................................. $ 2,871,841,648
===============
NET ASSETS CONSIST OF:
Capital paid in ......................................... $ 2,872,199,463
Accumulated net realized loss
on investment transactions ............................ (357,815)
---------------
$ 2,871,841,648
===============
Investor Class
Net assets .............................................. $ 2,865,941,240
Shares outstanding ...................................... 2,866,299,215
Net asset value per share ............................... $ 1.00
Advisor Class
Net assets .............................................. $ 5,900,408
Shares outstanding ...................................... 5,900,248
Net asset value per share ............................... $ 1.00
8 1-800-345-2021 See Notes to Financial Statements
Statement of Operations
--------------------------------------------------------------------------------
This statement shows how the fund's net assets changed during the reporting
period as a result of the fund's operations. In other words, it shows how much
money the fund made or lost as a result of interest income, fees and expenses,
and investment gains or losses.
FOR THE SIX MONTHS ENDED AUGUST 31, 2000 (UNAUDITED)
INVESTMENT INCOME
Income:
Interest ................................................ $ 93,171,921
------------
Expenses (Note 2):
Management fees ......................................... 8,549,949
Distribution fees -- Advisor Class ...................... 7,007
Service fees -- Advisor Class ........................... 7,007
Trustees' fees and expenses ............................. 62,047
------------
8,626,010
------------
Net investment income ................................... 84,545,911
------------
REALIZED LOSS ON INVESTMENTS
Net realized loss on investments ........................ (1,161)
------------
Net Increase in Net Assets
Resulting from Operations ............................. $ 84,544,750
============
See Notes to Financial Statements www.americancentury.com 9
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
This statement shows how the fund's net assets changed over the past two
reporting periods. It details how much a fund grew or shrank as a result of
operations (as detailed on the previous page for the most recent period), income
distributions, and shareholder investments and redemptions.
SIX MONTHS ENDED AUGUST 31, 2000 (UNAUDITED) AND YEAR ENDED FEBRUARY 29, 2000
AUGUST 31, FEBRUARY 29,
Increase (Decrease) in Net Assets 2000 2000
OPERATIONS
Net investment income .................... $ 84,545,911 $ 140,790,677
Net realized loss on investments ......... (1,161) --
--------------- ---------------
Net increase in net assets
resulting from operations .............. 84,544,750 140,790,677
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income:
Investor Class ......................... (84,388,809) (140,590,132)
Advisor Class .......................... (157,102) (200,545)
--------------- ---------------
Decrease in net assets from distributions (84,545,911) (140,790,677)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS (NOTE 3)
Net increase (decrease) in net
assets from capital share transactions . (54,780,873) 71,528,515
--------------- ---------------
Net increase (decrease) in net assets .... (54,782,034) 71,528,515
NET ASSETS
Beginning of period ...................... 2,926,623,682 2,855,095,167
--------------- ---------------
End of period ............................ $ 2,871,841,648 $ 2,926,623,682
=============== ===============
10 1-800-345-2021 See Notes to Financial Statements
Notes to Financial Statements
--------------------------------------------------------------------------------
AUGUST 31, 2000 (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 (the 1940 Act) as an open-end
management investment company. Prime Money Market Fund (the fund) is the only
fund issued by the trust. The fund is diversified under the 1940 Act. 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 are in accordance
with generally accepted accounting principles; these policies may require the
use of estimates by fund management.
MULTIPLE CLASS -- The fund is authorized to issue two classes of shares: the
Investor Class and the Advisor Class. The two classes of shares differ
principally in their respective shareholder servicing and distribution expenses
and arrangements. All shares of the fund represent an equal pro rata interest in
the assets of the class to which such shares belong, and have identical voting,
dividend, liquidation and other rights and the same terms and conditions, except
for class specific expenses and exclusive rights to vote on matters affecting
only individual classes.
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 as of the
trade date. 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 or state 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 29, 2000, the fund had accumulated net realized capital loss
carryovers of $356,654 (expiring 2001 through 2007) which may be used to offset
future taxable gains.
ADDITIONAL INFORMATION -- Funds Distributor, Inc. (FDI) is a distributor of
the trust. Certain officers of FDI are also officers of the trust.
--------------------------------------------------------------------------------
2. TRANSACTIONS WITH RELATED PARTIES
The trust has entered into a Management Agreement with American Century
Investment Management, Inc. (ACIM), under which ACIM provides the fund with
investment advisory and management services in exchange for a single, unified
management fee per class. The Agreement provides that all expenses of the fund,
except brokerage, taxes, portfolio insurance, interest, fees and expenses of the
trustees who are not considered "interested persons" as defined in the 1940 Act
(including counsel fees) and extraordinary expenses, will be paid by ACIM. The
fee is calculated daily and paid monthly. It consists of an Investment Category
Fee based on the average net assets of the funds in a specific fund's investment
category and a Complex Fee based on the average net assets of all the funds
managed by ACIM. The rates for the Investment Category Fee range from 0.2570% to
0.3700% and the rates for the Complex Fee (Investor Class) range from 0.2900% to
0.3100%. The Advisor Class is 0.2500% less at each point within the Complex Fee
range. For the six months ended August 31, 2000, the effective annual Investor
Class management fee was 0.59%.
The Board of Trustees has adopted the Advisor Class Master Distribution and
Shareholder Services Plan (the plan), pursuant to Rule 12b-1 of the 1940 Act.
The plan provides that the fund will pay ACIM an annual distribution fee equal
to 0.25% and annual service fee equal to 0.25%. The fees are computed daily and
paid monthly based on the Advisor Class's average daily closing net assets
during the previous month. The distribution fee provides compensation for
distribution expenses incurred by financial intermediaries in connection with
distributing shares of the Advisor Class including, but not limited to, payments
to brokers, dealers, and financial institutions that have entered into sales
agreements with respect to shares of the fund. The service fee provides
compensation for shareholder and administrative services rendered by ACIM, its
affiliates or independent third party providers. Fees incurred under the plan
during the six months ended August 31, 2000 were $14,014.
Effective March 13, 2000, American Century Investment Services, Inc. (ACIS),
became a distributor of the trust.
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, a
distributor of the trust, ACIS, and the trust's transfer agent, American Century
Services Corporation.
www.americancentury.com 11
Notes to Financial Statements
--------------------------------------------------------------------------------
(Continued)
AUGUST 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
3. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the fund were as follows (unlimited number of
shares authorized):
SHARES AMOUNT
INVESTOR CLASS
Six months ended August 31, 2000
Sold ..................................... 1,975,943,769 $ 1,975,943,769
Issued in reinvestment of distributions .. 99,775,036 99,775,036
Redeemed ................................. (2,131,601,181) (2,131,601,181)
--------------- ---------------
Net Decrease ............................. (55,882,376) $ (55,882,376)
=============== ===============
Year ended February 29, 2000
Sold ..................................... 4,383,800,939 $ 4,383,800,971
Issued in reinvestment of distributions .. 135,907,729 135,907,729
Redeemed ................................. (4,449,764,050) (4,449,764,050)
--------------- ---------------
Net Increase ............................. 69,944,618 $ 69,944,650
=============== ===============
ADVISOR CLASS
Six months ended August 31, 2000
Sold ..................................... 6,038,075 $ 6,038,075
Issued in reinvestment of distributions .. 156,594 156,594
Redeemed ................................. (5,093,166) (5,093,166)
--------------- ---------------
Net Increase ............................. 1,101,503 $ 1,101,503
=============== ===============
Year ended February 29, 2000
Sold ..................................... 10,466,392 $ 10,466,392
Issued in reinvestment of distributions .. 198,445 198,445
Redeemed ................................. (9,080,972) (9,080,972)
--------------- ---------------
Net Increase ............................. 1,583,865 $ 1,583,865
=============== ===============
12 1-800-345-2021
Prime Money Market--Financial Highlights
--------------------------------------------------------------------------------
This table itemizes investment results and distributions on a per-share basis to
illustrate share price changes for each of the last five fiscal years (or less,
if the share class is not five years old). It also includes several key
statistics for each reporting period, including TOTAL RETURN, INCOME RATIO (net
investment income as a percentage of average net assets), and EXPENSE RATIO
(operating expenses as a percentage of average net assets).
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED FEBRUARY 28 (EXCEPT AS NOTED)
Investor Class
2000(1) 2000(2) 1999 1998 1997 1996(2)
PER-SHARE DATA
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------- ------------- ------------- ------------- ------------- -------------
Income From Investment Operations
Net Investment Income ......... 0.03 0.05 0.05 0.05 0.05 0.06
------------- ------------- ------------- ------------- ------------- -------------
Distributions
From Net Investment Income .... (0.03) (0.05) (0.05) (0.05) (0.05) (0.06)
------------- ------------- ------------- ------------- ------------- -------------
Net Asset Value, End of Period .. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============= ============= ============= ============= ============= =============
Total Return(3) ............... 2.97% 4.92% 5.07% 5.29% 5.04% 5.60%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ......... 0.59%(4) 0.60% 0.58% 0.50% 0.50% 0.48%
Ratio of Operating Expenses
to Average Net Assets
(Before Expense Waiver) ....... 0.59%(4) 0.60% 0.60% 0.63% 0.63% 0.62%
Ratio of Net Investment Income
to Average Net Assets ......... 5.90%(4) 4.81% 4.91% 5.17% 4.92% 5.43%
Ratio of Net Investment Income
to Average Net Assets
(Before Expense Waiver) ....... 5.90%(4) 4.81% 4.89% 5.04% 4.79% 5.29%
Net Assets, End of Period
(in thousands) ................ $ 2,865,941 $ 2,921,825 $ 2,851,880 $ 1,417,311 $ 1,211,990 $ 1,270,653
</TABLE>
(1) Six months ended August 31, 2000 (unaudited).
(2) Year ended February 29, 2000 and February 29, 1996, accordingly.
(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.
See Notes to Financial Statements www.americancentury.com 13
Prime Money Market--Financial Highlights
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED FEBRUARY 28 (EXCEPT AS NOTED)
Advisor Class
2000(1) 2000(2) 1999(3)
PER-SHARE DATA
Net Asset Value, Beginning of Period ... $1.00 $1.00 $1.00
----------- ----------- ---------
Income From Investment Operations
Net Investment Income ................ 0.03 0.05 0.02
----------- ----------- ---------
Distributions
From Net Investment Income ........... (0.03) (0.05) (0.02)
----------- ----------- ---------
Net Asset Value, End of Period ......... $1.00 $1.00 $1.00
=========== =========== =========
Total Return(4) ...................... 2.85% 4.66% 2.31%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ................ 0.84%(5) 0.85% 0.85%(5)
Ratio of Net Investment Income
to Average Net Assets ................ 5.65%(5) 4.56% 4.53%(5)
Net Assets, End of Period
(in thousands) ....................... $5,900 $4,799 $3,215
(1) Six months ended August 31, 2000 (unaudited).
(2) Year ended February 29, 2000.
(3) August 28, 1998 (commencement of sale) through February 28, 1999.
(4) Total return assumes reinvestment of dividends and capital gains
distributions, if any. Total returns for periods less than one year are not
annualized.
(5) Annualized.
14 1-800-345-2021 See Notes to Financial Statements
Share Class and Retirement Account Information
--------------------------------------------------------------------------------
SHARE CLASSES
Two classes of shares are authorized for sale by the fund: Investor Class
and Advisor Class.
INVESTOR CLASS shareholders do not pay any commissions or other fees for
purchase of fund shares directly from American Century. Investors who buy
Investor Class shares through a broker-dealer may be required to pay the
broker-dealer a transaction fee.
ADVISOR CLASS shares are sold through banks, broker-dealers, insurance
companies, and financial advisors. Advisor Class shares are subject to a 0.50%
Rule 12b-1 service and distribution fee. Half of that fee is available to pay
for recordkeeping and administrative services, and half is available to pay for
distribution services provided by the financial intermediary through which the
Advisor Class shares are purchased. The total expense ratio of the Advisor Class
shares is 0.25% higher than the total expense ratio of the Investor Class
shares.
Both classes of shares represent a pro rata interest in the funds and
generally have the same rights and preferences.
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)
account] 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 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 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 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.
www.americancentury.com 15
Background Information
--------------------------------------------------------------------------------
INVESTMENT PHILOSOPHY AND POLICIES
American Century offers 38 fixed-income funds, ranging from money market
portfolios to long-term bond funds and including both taxable and tax-exempt
funds. Each 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
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 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 FDIC or any other government agency. Yields will fluctuate, and although the
fund seeks to preserve the value of your investment at $1 per share, it is
possible to lose money by investing in the fund.
COMPARATIVE INDICES
The following index is used in the report for fund performance comparisons.
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 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 funds in Lipper's MONEY MARKET INSTRUMENT FUNDS category intend to
maintain a stable net asset value and invest in high-quality financial
instruments rated in the top two grades with dollar-weighted average maturities
of less than 90 days.
CREDIT RATING GUIDELINES
Credit ratings are issued by independent research companies such as
Standard & Poor's and Moody's. They are based on an issuer's financial strength
and ability to pay interest and principal in a timely manner.
A-1 (which includes A-1+) is Standard & Poor's highest credit rating for
short-term securities. Here are the most common short-term credit ratings and
their definitions:
* A-1+: extremely strong ability to meet financial obligations.
* A-1: strong ability to meet financial obligations.
* A-2: satisfactory ability to meet financial obligations.
It's important to note that credit ratings are subjective, reflecting the
opinions of the rating agencies; they are not absolute standards of quality.
[left margin]
INVESTMENT TEAM LEADERS
Portfolio Managers
DENISE TABACCO
JOHN WALSH
Credit Research Manager
GREG AFIESH
16 1-800-345-2021
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 total returns, please refer to the "Financial
Highlights" on pages 13-14.
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 that issued securities held by the
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.
www.americancentury.com 17
Glossary
--------------------------------------------------------------------------------
(Continued)
FUND CLASSIFICATIONS
Please be aware that the fund's category may change over time. Therefore, it
is important that you read a fund's prospectus or fund profile carefully before
investing to ensure its objectives, policies, and risk potential are consistent
with your needs.
INVESTMENT OBJECTIVE
The investment objective may be based on the fund's objective as stated in
its prospectus or fund profile, or the fund's categorization by independent
rating organizations based on its management style.
* CAPITAL PRESERVATION -- offers taxable and tax-free money market funds for
relative stability of principal and liquidity.
* INCOME -- offers funds that can provide current income and competitive yields,
as well as a strong and stable foundation and generally lower volatility levels
than stock funds.
* GROWTH & INCOME -- offers funds that emphasize both growth and income provided
by either dividend-paying equities or a combination of equity and fixed-income
securities.
* GROWTH -- offers funds with a focus on capital appreciation and long-term
growth, generally providing high return potential with corresponding high
price-fluctuation risk.
RISK
The classification of funds by risk category is based on quantitative
historical measures as well as qualitative prospective measures. It is not
intended to be a precise indicator of future risk or return levels. The degree
of risk within each category can vary significantly, and some fund returns have
historically been higher than more aggressive funds or lower than more
conservative funds.
* CONSERVATIVE -- these funds generally provide lower return potential with
either low or minimal price-fluctuation risk.
* MODERATE -- these funds generally provide moderate return potential with
moderate price-fluctuation risk.
* AGGRESSIVE -- these funds generally provide high return potential with
corresponding high price-fluctuation risk.
18 1-800-345-2021
Notes
--------------------------------------------------------------------------------
www.americancentury.com 19
Notes
--------------------------------------------------------------------------------
20 1-800-345-2021
[inside back cover]
===============================================================================
INVESTMENT OBJECTIVE - CAPITAL PRESERVATION
===============================================================================
RISK LEVEL - CONSERVATIVE
TAXABLE MONEY MARKETS TAX-FREE MONEY MARKETS
Premium Capital Reserve FL Municipal Money Market
Prime Money Market CA Municipal Money Market
Premium Government Reserve CA Tax-Free Money Market
Government Agency Tax-Free Money Market
Money Market
Capital Preservation
===============================================================================
INVESTMENT OBJECTIVE - INCOME
===============================================================================
RISK LEVEL - AGGRESSIVE
TAXABLE BONDS TAX-FREE BONDS
Target 2025* CA High-Yield Municipal
Target 2020* High-Yield Municipal
Target 2015*
Target 2010*
High-Yield
International Bond
RISK LEVEL - MODERATE
TAXABLE BONDS TAX-FREE BONDS
Long-Term Treasury CA Long-Term Tax-Free
Target 2005* Long-Term Tax-Free
Bond CA Insured Tax-Free
Premium Bond
RISK LEVEL - CONSERVATIVE
TAXABLE BONDS TAX-FREE BONDS
Intermediate-Term Bond CA Intermediate-Term Tax-Free
Intermediate-Term Treasury AZ Intermediate-Term Municipal
GNMA FL Intermediate-Term Municipal
Inflation-Adjusted Treasury Intermediate-Term Tax-Free
Limited-Term Bond CA Limited-Term Tax-Free
Target 2000* Limited-Term Tax-Free
Short-Term Government
Short-Term Treasury
===============================================================================
INVESTMENT OBJECTIVE - GROWTH AND INCOME
===============================================================================
RISK LEVEL - AGGRESSIVE
DOMESTIC EQUITY
Small Cap Quantitative
Small Cap Value
RISK LEVEL - MODERATE
ASSET ALLOCATION/BALANCED DOMESTIC EQUITY SPECIALTY
Strategic Allocation -- Equity Growth Utilities
Aggressive Equity Index Real Estate
Balanced Large Cap Value
Strategic Allocation -- Tax-Managed Value
Moderate Income & Growth
Strategic Allocation -- Value
Conservative Equity Income
===============================================================================
INVESTMENT OBJECTIVE - GROWTH
===============================================================================
RISK LEVEL - AGGRESSIVE
DOMESTIC EQUITY SPECIALTY INTERNATIONAL
Veedot(reg.sm) Global Gold Emerging Markets
New Opportunities Technology International Discovery
Giftrust(reg.tm) Life Sciences International Growth
Vista Global Growth
Heritage
Growth
Ultra(reg.tm)
Select
RISK LEVEL - MODERATE
SPECIALTY
Global Natural Resources
The investment objective may be based on the fund's objective as stated in its
prospectus or fund profile, or the fund's categorization by independent rating
organizations based on its management style.
The classification of funds by risk category is based on quantitative historical
measures as well as qualitative prospective measures. It is not intended to be a
precise indicator of future risk or return levels. The degree of risk within
each category can vary significantly, and some fund returns have historically
been higher than more aggressive funds or lower than more conservative funds.
Please be aware that a fund's category may change over time. Therefore, it is
important that you read a fund's prospectus or fund profile carefully before
investing to ensure its objectives, policies and risk potential are consistent
with your needs. For a definition of fund categories, see the Glossary.
* While listed within the Income investment objective, the Target funds do not
pay current dividend income. Income dividends are distributed once a year in
December. The Target funds are listed in all three risk categories due to the
dramatic price volatility investors may experience during certain market
conditions. If held to their target dates, however, they can offer a
conservative, dependable way to invest for a specific time horizon.
Please call 1-800-345-2021 for a prospectus or profile on any American Century
fund. These documents contain important information including charges and
expenses, and you should read them carefully before you invest or send money.
[back cover]
Who we are
American Century offers investors more than 70 mutual funds that span the
investment spectrum. We currently manage $100 billion for roughly 2 million
individuals, institutions and corporations, with a range of services designed to
make investing easy and convenient.
For four decades, American Century has been a leader in performance, service and
innovation. From pioneering the use of computer technology in investing to
allowing investors to conduct transactions and receive financial advice over the
Internet, we have remained committed to building long-term relationships and to
helping investors achieve their dreams.
In a very real sense, investors put their future in our hands. With so much at
stake, our work continues to be guided by one central belief, shared by every
person at American Century: WE SUCCEED ONLY IF OUR INVESTORS SUCCEED.
[left margin]
[american century logo and text logo (reg.sm)]
American
Century
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR RELATIONS
1-800-345-2021 OR 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
FAX: 816-340-7962
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 OR 816-444-3485
BUSINESS, NOT-FOR-PROFIT, EMPLOYER-SPONSORED
RETIREMENT PLANS
1-800-345-3533
BANKS AND TRUST COMPANIES, BROKER-DEALERS,
FINANCIAL ADVISORS, INSURANCE COMPANIES
1-800-345-6488
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 Investments PRSRT STD
P.O. Box 419200 U.S. POSTAGE PAID
Kansas City, MO 64141-6200 AMERICAN CENTURY
www.americancentury.com COMPANIES
0010 American Century Investment Services, Inc.
SH-SAN-22409 (c)2000 American Century Services Corporation
