FUND PROFILE
Strategic Allocation:
* Conservative
* Moderate
* Aggressive
INVESTOR CLASS
November 6, 1998
[american century logo(reg.sm)]
American
Century
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This profile summarizes key information about the fund that is included
in the fund's Prospectus. The fund's Prospectus has additional
information about the fund, including a more detailed description of the
risks associated with investing in the fund, that you may want
to consider before you invest. You may obtain the Prospectus and other
information about the fund at no cost by calling us at 1-800-345-2021,
accessing our Web site or visiting one of our Investor Centers.
See the back cover for additional telephone numbers and our address.
AMERICAN CENTURY GROUP
AMERICAN CENTURY INVESTMENTS
STRATEGIC ALLOCATION: CONSERVATIVE
STRATEGIC ALLOCATION: MODERATE
STRATEGIC ALLOCATION: AGGRESSIVE
1. WHAT ARE THE FUNDS' INVESTMENT OBJECTIVES?
Strategic Allocation: Conservative, Strategic Allocation: Moderate and
Strategic Allocation: Aggressive are asset allocation funds. That is, these
funds diversify their assets among various classes of investments such as
stocks, bonds and money market instruments. Each fund holds a different mix
of these asset types, which gives it a distinct risk profile and return
potential.
* STRATEGIC ALLOCATION: CONSERVATIVE seeks regular income through its
emphasis on bonds and money market securities. It also has the potential
for moderate long-term total return as a result of its stake in equity
securities.
* STRATEGIC ALLOCATION: MODERATE seeks long-term capital growth with some
regular income. It emphasizes investments in equity securities, but
maintains a sizeable stake in bonds and money market securities.
* STRATEGIC ALLOCATION: AGGRESSIVE seeks long-term capital growth with a
small amount of income. It emphasizes investments in equity securities,
but maintains a portion of its assets in bonds and money market
securities.
2. WHAT ARE THE FUNDS' INVESTMENT STRATEGIES?
The funds' strategic asset allocation strategy diversifies investments
among equity securities, bonds and cash-equivalent instruments. The funds
may invest in any type of U.S. or foreign equity security that meets
certain fundamental and technical standards. The fund advisor draws on
growth, value and quantitative investment techniques in managing the equity
portion of the funds' portfolios and diversifies the funds' equity
investments among small, medium and large companies.
The funds also invest in a variety of debt securities payable in both
U.S. and foreign currencies. The funds primarily invest in investment-grade
securities, that is, securities rated in the four highest categories by
independent rating organizations. However, Strategic Allocation: Moderate
may invest up to 5% of its assets, and Strategic Allocation: Aggressive may
invest up to 10% of its assets, in high-yield securities. High-yield
securities are higher risk, non-convertible debt obligations that are rated
below investment grade. The funds may also invest in unrated securities
based on the fund advisor's assessment of their credit quality. The
maturities of fixed-income securities in which the funds invest are
expected to range from two to 30 years.
The funds may invest the cash equivalent portion of their portfolios in
high-quality money market investments (denominated in U.S. dollars or
foreign currencies).
The following table indicates each fund's neutral mix. The neutral mix
represents a benchmark as to how a fund's investments generally will be
allocated among the major asset classes over the long term.
Neutral Mixes
EQUITY CASH
FUND SECURITIES BONDS EQUIVALENTS
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Strategic Allocation:
Conservative 40% 45% 15%
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Strategic Allocation:
Moderate 60% 30% 10%
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Strategic Allocation:
Aggressive 75% 20% 5%
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The following table shows the operating ranges in which each fund's
asset mix may vary over short-term periods. These variations may be due to
differences in asset class performance or prevailing market conditions.
Operating Ranges
EQUITY CASH
FUND SECURITIES BONDS EQUIVALENTS
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Strategic Allocation:
Conservative 34-46% 38-52% 10-25%
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Strategic Allocation:
Moderate 50-70% 20-40% 5-20%
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Strategic Allocation:
Aggressive 60-90% 10-30% 0-15%
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STRATEGIC ALLOCATION AMERICAN CENTURY INVESTMENTS
Additional information about the funds' investments is available in
their annual and semiannual reports. In these reports you will find a
discussion of the market conditions and investment strategies that
significantly affected the funds' performance during the most recent
six-month period. You may get these reports at no cost by calling us.
3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUNDS?
*The value of the funds' shares depends on the value of the stocks and
other securities they own. The value of the individual securities the funds
own will go up and down depending on the performance of the companies that
issued them, general market and economic conditions, and investor
confidence.
*When interest rates change, the value of the fixed-income portion of each
fund's portfolio will be affected. When interest rates rise, the value of
each fund's fixed-income investments will decline. The opposite is true
when interest rates decline.
*The value of the debt securities held by the funds fluctuates with the
credit quality of the issuers of those securities. The lowest rated
investment-grade bonds in which the funds may invest contain some
speculative characteristics. Having those bonds in the funds' portfolios
means the funds' value may go down more if interest rates or other economic
conditions change than if the funds contained only higher rated bonds. In
addition, Strategic Allocation: Moderate and Strategic Allocation:
Aggressive may invest in higher risk high-yield securities, sometimes
referred to as junk bonds. These securities are considered to be
predominantly speculative and are more likely to be negatively affected by
changes in interest rates or other economic conditions.
*As with all funds, at any given time, the value of your shares of the
funds may be worth more or less than the price you paid. If you sell your
shares when the value is less than the price you paid, you will lose money.
*An investment in the funds is not a bank deposit and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
*Although the fund advisor invests the funds' assets primarily in U.S.
securities, the funds can invest in securities of foreign companies.
Foreign securities can have certain unique risks, including fluctuations in
currency exchange rates, unstable political and economic structures,
reduced availability of public information and the lack of uniform
financial reporting and regulatory practices similar to those that apply to
U.S. issuers.
In summary, the Strategic Allocation funds are intended for investors
who seek to diversify their assets among various classes of investments,
such as stocks, bonds and money market instruments, and who are willing to
accept the risks associated with that investment strategy.
FUND PERFORMANCE
The following bar chart shows the actual performance of the funds'
Investor Class shares for each calendar year since the funds' inception on
February 15, 1996. The bar chart indicates the volatility of the funds'
historical returns from year to year. Neither the bar chart nor the
performance information below it is intended to indicate how the funds will
perform in the future.
[bar chart]
CALENDAR YEAR-BY-YEAR RETURNS
1997
Strategic Allocation: Conservative 12.84
Strategic Allocation: Moderate 15.24
Strategic Allocation: Aggressive 16.23
As of September 30, 1998, the end of the most recent calendar quarter, the
funds' year-to-date returns were as follows: Strategic Allocation: Conservative
- -4.05%; Strategic Allocation: Moderate -2.49%; and Strategic Allocation:
Aggressive -1.00%.
The highest and lowest returns of the funds' Investor Class shares for a
calendar quarter since the funds' inception on February 15, 1996, are
provided in the following chart to indicate the funds' historical
short-term volatility.
Shareholders should be aware, however, that the Strategic Allocation
funds are intended for investors with a long-term investment horizon and
are not managed for short-term results.
FUND PROFILE STRATEGIC ALLOCATION
[bar chart]
Highest and Lowest Quarterly Returns
Strategic Allocation: Conservative: Quarter Ended 6/30/97 7.05%
Quarter Ended 9/30/98 -2.95%
Strategic Allocation: Moderate: Quarter Ended 6/30/97 9.48%
Quarter Ended 9/30/98 -7.60%
Strategic Allocation: Aggressive: Quarter Ended 6/30/97 11.65%
Quarter Ended 9/30/98 -11.09%
The following table shows the average annual return of the funds'
Investor Class shares for the periods indicated. The table also includes as
benchmarks for long-term performance comparisons the S&P 500 Index
(stocks), the Lehman Aggregate Bond Index (bonds) and the 90-Day U.S.
Treasury Bill (cash equivalents). These indices are unmanaged and reflect
no operating costs.
1 YEAR LIFE OF FUND
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1998)
Strategic Allocation: Conservative 4.94% 9.94%
Strategic Allocation: Moderate 2.39% 10.63%
Strategic Allocation: Aggressive -0.66% 10.22%
S&P 500 Index 9.02% 20.83%
Lehman Aggregate Bond Index 11.51% 8.83%
90 Day U.S. Treasury Bill 5.11% 5.13%
(indices as of 2/29/96)
4. WHAT ARE THE FUNDS' FEES AND EXPENSES?
There are no sales loads, fees or other charges to buy fund shares
directly from American Century, to reinvest dividends in additional shares,
to exchange into the Investor Class shares of other American Century funds,
or to redeem your shares. The following table describes the fees and
expenses that you may pay if you buy and hold shares of the funds.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Conservative Moderate Aggressive
Management Fee 1.00%(1) 1.10%(1) 1.20%(1)
Distribution and Service (12b-1) Fees None None None
Other Expenses(2) 0.00% 0.00% 0.00%
Total Annual Fund Operating Expenses 1.00% 1.10% 1.20%
(1 )Based upon assets at September 30, 1998. The funds have a stepped
fee schedule. As a result, the funds' management fees decrease as fund
assets increase.
(2)Other expenses, which include the fees and expenses of the funds'
independent directors, their legal counsel, interest and extraordinary
expenses, were less than 0.005% for the most recent fiscal year.
EXAMPLE OF HYPOTHETICAL FUND COSTS
Assuming you . . .
* invest $10,000 in the fund
* redeem your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same fund operating expenses shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
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Conservative $102 $318 $551 $1,219
Moderate $112 $349 $604 $1,334
Aggressive $122 $380 $657 $1,447
Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.
5. WHO ARE THE FUNDS' INVESTMENT ADVISOR AND PORTFOLIO MANAGER?
American Century Investment Management, Inc. provides investment
advisory and management services for the funds. American Century uses teams
of portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. The portfolio manager who supervises
the funds' team is:
JEFFREY R. TYLER, Senior Vice President and Portfolio Manager, has been
a member of the team that manages the Strategic Allocation funds since
their inception in February 1996. He joined American Century in January
1988 as a Portfolio Manager. He supervises the team of other Portfolio
Managers who assist in the management of the various investment categories
of the funds.
STRATEGIC ALLOCATION AMERICAN CENTURY INVESTMENTS
6. HOW DO I BUY FUND SHARES?
* Complete and return the enclosed application
* Call us and exchange shares from another American Century fund
* Call us and send your investment by bank wire transfer
Your initial investment must be at least $2,500 ($1,000 for traditional
IRAs, Roth IRAs and UGMA/UTMA accounts), unless you establish an automatic
investment plan of at least $50 per month. If the value of your account
falls below this account minimum, your shares may be redeemed
involuntarily.
7. HOW DO I SELL FUND SHARES?
You may sell all or part of your fund shares on any business day by
writing or calling us. You also may exchange your shares for shares in
nearly 70 other mutual funds offered by American Century. Depending on the
options you select when you open your account, some restrictions may apply.
For your protection, some redemption requests require a signature
guarantee.
8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?
Strategic Allocation: Conservative and Strategic Allocation: Moderate
declare and pay distributions from net investment income quarterly, and
Strategic Allocation: Aggressive does so annually. The funds declare and
pay distributions of net realized capital gains once a year, usually in
December. Distributions may be taxable as ordinary income, capital gains,
or a combination of the two. Capital gains are taxed at different rates
depending on the length of time the funds held the securities that were
sold. Distributions are reinvested automatically in additional shares
unless you choose another option.
9. WHAT SERVICES ARE AVAILABLE?
American Century offers several ways to make it easier for you to manage
your account, such as:
* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online Internet account access and transactions
You will find more information about these choices in our Investor
Services Guide, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.
Information contained in our Investor Services Guide pertains to
shareholders who invest directly with American Century rather than through
an employer-sponsored retirement plan or through a financial intermediary.
If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary,
call an Institutional Service Representative at 1-800-345-3533.
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[american century logo(reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
WWW.AMERICANCENTURY.COM
INVESTOR SERVICES
1-800-345-2021 or 816-531-5575
AUTOMATED INFORMATION LINE
1-800-345-8765
INSTITUTIONAL, CORPORATE, KEOGH, SEP/SARSEP,
SIMPLE AND 403(B) SERVICES
1-800-345-3533
TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485
FAX
816-340-7962
Funds Distributor, Inc.
SH-BRO-13790 9811
