[front cover]
AMERICAN CENTURY
Fund Profile
[american century logo (reg.sm)]
American
Century
Strategic Allocation: Conservative Fund
Strategic Allocation: Moderate Fund
Strategic Allocation: Aggressive Fund
This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes 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.
[photos of woman and girls blowing bubbles, men talking, woman at computer]
OCTOBER 25, 1999
INVESTOR CLASS
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.
STRATEGIC ALLOCATION: CONSERVATIVE FUND
STRATEGIC ALLOCATION: MODERATE FUND
STRATEGIC ALLOCATION: AGGRESSIVE FUND
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' managers' strategic asset allocation strategy diversifies
investments among equity securities, bonds and cash-equivalent instruments.
The funds' managers may invest in any type of U.S. or foreign equity
security that meets certain fundamental and technical standards. The funds'
managers draw 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' managers also invest in a variety of debt securities payable in
both U.S. and foreign currencies. The funds' managers 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' managers may
also invest in unrated securities based on the funds' 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' managers 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
Strategic Allocation:
Conservative 40% 45% 15%
Strategic Allocation:
Moderate 60% 30% 10%
Strategic Allocation:
Aggressive 75% 20% 5%
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.
Strategic Allocation American Century Investments
OPERATING RANGES
Equity Cash
Fund Securities Bonds Equivalents
Strategic Allocation:
Conservative 34-46% 38-52% 10-25%
Strategic Allocation:
Moderate 50-70% 20-40% 5-20%
Strategic Allocation:
Aggressive 60-90% 10-30% 0-15%
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 fiscal 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
Strategic Allocation 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, your shares may be worth more or less at any given time
than the price you paid for them. 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 (FDIC) or any other
government agency.
* Although the funds' advisor invests the funds' assets primarily in U.S.
stocks, 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. The bar chart and the performance information
below are not intended to indicate how the funds will perform in the future.
[data shown in bar chart]
Calendar Year-By-Year Returns (1)
1998 1997
Conservative 10.53% 12.84%
Moderate 12.75% 15.24%
Aggressive 13.80% 16.23%
(1) As of September 30, 1999, the end of the most recent calendar
quarter, the funds' year-to-date returns were as follows: Strategic
Allocation: Conservative 1.62%; Strategic Allocation: Moderate
4.18%; Strategic Allocation: Aggressive 6.77%.
Strategic Allocation Fund Profile
The highest and lowest quarterly returns for the period reflected in the bar
chart are:
Highest Lowest
Strategic Allocation:
Conservative 7.05% (2Q 1997) -2.95% (3Q 1998)
Strategic Allocation:
Moderate 10.01% (4Q 1998) -7.60% (3Q 1998)
Strategic Allocation:
Aggressive 12.68% (4Q 1998) -11.09% (3Q 1998)
The following table shows the average annual total returns of the funds'
Investor Class shares for the periods indicated. The table also includes as
benchmarks for performance comparisons the S&P 500 Index (stocks), the
Lehman Aggregate Bond Index (bonds) and the Three-Month U.S. Treasury Bill
(cash equivalents). These indices are unmanaged and reflect no operating
costs.
1 YEAR LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED SEPTEMBER 30, 1999)
Strategic Allocation: Conservative 7.95% 8.61%
Strategic Allocation: Moderate 14.61% 11.42%
Strategic Allocation: Aggressive 20.30% 12.87%
S&P 500 Index 27.80% 23.50%(2)
Lehman Aggregate Bond Index -0.37% 6.19%(2)
Three-Month U.S. Treasury Bill 4.54% 4.97%(2)
(1) The inception dates for Strategic Allocation: Conservative,
Strategic Allocation: Moderate, Strategic Allocation: Aggressive are
February 15, 1996.
(2) Since February 29, 1996, the date nearest the funds' inception for
which data are available.
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
* to redeem your shares
The following table describes the fees and expenses that you will 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 0.00%(2) 0.00%(2) 0.00%(2)
Total Annual Fund
Operating Expenses 1.00% 1.10% 1.20%
(1) Based on expenses incurred during the fund's most recent fiscal
year. The funds have a stepped fee schedule. As a result, the funds'
management fee rate generally decreases as fund assets increase.
(2) Other expenses, which include the fees and expenses of the funds'
independent directors, their legal counsel and interest, were less
than 0.005% for the most recent fiscal year.
EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above
. . . your cost of investing in the fund would be:
1 year 3 years 5 years 10 years
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 MANAGERS?
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. Identified below is the portfolio
manager that manages the Strategic Asset Allocation funds:
JEFFREY R. TYLER, Senior Vice President and Portfolio Manager, has been a
member of the team that manages the funds since their inception in February
1996. He joined American Century in January 1988. He has a bachelor's degree
in economics from the University of California-Santa Barbara and an MBA in
finance from Northwestern University.
Strategic Allocation American Century Investments
6. HOW DO I BUY FUND SHARES?
American Century offers several ways to purchase shares
* Complete and return an application along with an investment check payable
to American Century Investments
* If you already have an American Century account, call us or access our Web
site to 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 and
Roth IRAs). If your redemption activity causes the value of your account to
fall 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 Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.
Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or 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
a Service Representative at 1-800-345-3533.
Strategic Allocation Fund Profile
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[american century logo (reg.sm)]
American
Century
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
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 AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-3533
Visit our Web site at WWW.AMERICANCENTURY.COM
SH-PRF-17892 9910 Funds Distributor, Inc.
