[front cover]
NOVEMBER 30, 1999
AMERICAN CENTURY(reg.sm)
ANNUAL REPORT
[graphic of runners]
Strategic Allocation:
Conservative
Moderate
Aggressive
[american century logo (reg.sm)]
American
Century
[inside front cover]
Investing with American Century Brokerage
--------------------------------------------------------------------------------
American Century Brokerage offers investors a broad range of account types,
investment choices, plus free online research and information services.
As a brokerage investor, you can choose from a Standard Account, Access
Account or IRA Account.
Each of these accounts offers a broad range of investment choices, many of
which are available online:
* American Century and J.P. Morgan mutual funds
* Mutual funds from more than 500 fund families, including more than 800
no-transaction fee (NTF) no-load funds
* Listed and over-the-counter stocks
* Equity and index options
* Precious metals
* ADRs (American Depository Receipts)
* Treasury, agency, corporate, and municipal bonds
* CDs (certificates of deposit)
* UITs (unit investment trusts)
Research from J.P. Morgan
J.P. Morgan's world-class global equity research is accessible online to all
brokerage investors initially for a 60-day free trial. After the free trial
period, you can continue to access the research with a minimum of $100,000 in
assets in an American Century brokerage or mutual fund account.
Online Research and Information Services
American Century Brokerage provides you with up-to-date information to help
you make informed decisions. Through American Century Brokerage, you have
unlimited free access to news, quotes, charting, and other research services,
such as Lipper, Inc. Mutual Fund Profile Reports and S&P Snapshot
Reports. Also, you can use Model Portfolio to track up to 20 securities.
Meet Your Goals with FundScan(tm)
American Century Brokerage offers an online mutual fund screening service --
FundScan(tm). By customizing a list of mutual funds to best meet your investment
goals, FundScan helps you narrow investment choices from thousands of available
funds.
For more information about how you can become an American Century Brokerage
investor, visit our Web site at www.americancentury.com or call a Product and
Service Specialist at 1-888-367-7755.
[left margin]
STRATEGIC ALLOCATION: CONSERVATIVE
(TWSCX)
---------------------------------------
STRATEGIC ALLOCATION: MODERATE
(TWSMX)
---------------------------------------
STRATEGIC ALLOCATION: AGGRESSIVE
(TWSAX)
---------------------------------------
TURN TO THE INSIDE BACK COVER OF THIS REPORT TO SEE A LIST OF AMERICAN CENTURY
FUNDS CLASSIFIED BY OBJECTIVE AND RISK.
Receive Your Annual Reports Online
--------------------------------------------------------------------------------
Manage Important Papers with Ease
American Century gives you the choice to manage your important documents such
as annual reports, prospectuses and newsletters online rather than via regular
mail. Your link to American Century documents is a click away with our
Electronic Communication option.
It's easy. It's convenient. It's paper free:
* Receive links to documents by email
* Download select documents and file electronically to save space in
your file cabinets
* Read documents at your convenience
It's easy to sign up for this program. Go to www.americancentury.com. Log in
with your OnePIN and select an account on your Account List.* Then simply select
the electronic communication link. Questions? Step through the online
demonstration or call 1-800-345-2021. LOG IN AND TAKE CONTROL TODAY!
* Electronic communication is not available for American Century Brokerage
accounts at this time.
Our Message to You
--------------------------------------------------------------------------------
[photo of James E. Stowers III, seated, with James E. Stowers, Jr.]
James E. Stowers III, seated, with James E. Stowers, Jr.
The past year demonstrated why investors should focus on long-term
investment strategies and maintain diversified portfolios. The consensus
expectation going into 1999 was that U.S. bonds would do well while U.S. stocks
would cool off. Instead, the reverse happened--stocks put together spectacular
returns for the fifth consecutive year, while bonds had their worst year since
1994.
Although fund investors have benefited from the phenomenal returns of
stocks over the past several years, we wish to stress that these results are
unprecedented and not indefinitely sustainable. It is important to remember that
market corrections are an inevitable, even necessary part of the investment
process. That's why diversified portfolios like the Strategic Asset Allocation
funds are useful--they can help mitigate losses during market downturns.
Turning to corporate matters, we are constantly looking for ways to lower
the costs of trading securities and generate better returns for shareholders. To
that end, we have made strategic investments in several companies that allow
buyers and sellers of securities to connect directly, efficiently, and
anonymously. Today, more than one-third of our equity trades are executed over
alternative trading networks. Savings in this area directly affect the
performance of your funds.
We're also pleased to announce that American Century has been named by
Fortune magazine as one of its "100 Best Companies to Work For." We do
not take this recognition lightly; it is acknowledgements like this that enable
us to recruit talented and dedicated people, from service representatives to
investment professionals. This "intellectual capital" is our most
valuable resource and one that is essential in our effort to provide you with
excellent investment management and service.
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 Vice Chairman of the Board and
Chief Executive Officer
[right margin]
Table of Contents
Report Highlights ...................................................... 2
Market Perspective ..................................................... 3
STRATEGIC ALLOCATION: CONSERVATIVE
Performance Information ................................................ 5
Management Q&A ................................................. 6
Schedule of Investments ................................................ 9
STRATEGIC ALLOCATION: MODERATE
Performance Information ................................................ 19
Management Q&A ..................................................... 20
Schedule of Investments ................................................ 23
STRATEGIC ALLOCATION: AGGRESSIVE
Performance Information ................................................ 36
Management Q&A ..................................................... 37
Schedule of Investments ................................................ 40
FINANCIAL STATEMENTS
Statements of Assets and
Liabilities ......................................................... 52
Statements of Operations ............................................... 53
Statements of Changes
in Net Assets ....................................................... 54
Notes to Financial
Statements .......................................................... 55
Financial Highlights ................................................... 59
Independent Auditors'
Report .............................................................. 65
OTHER INFORMATION
Share Class and Retirement
Account Information ................................................. 66
Background Information
Investment Philosophy
and Policies ..................................................... 67
Comparative Indices ................................................. 67
Investment Team
Leaders .......................................................... 67
Neutral Asset Mixes ................................................. 67
Glossary ............................................................... 68
www.americancentury.com 1
Report Highlights
--------------------------------------------------------------------------------
MARKET PERSPECTIVE
* U.S. stocks produced double-digit returns over the past year, led by a surge
in technology shares.
* Japanese stocks soared as the country's economy showed signs of life; other
foreign stock markets also performed well.
* A strong domestic economy and rising interest rates caused U.S. bonds to
experience their worst year since 1994.
* Foreign bond markets also had weak returns as global economic growth began
to rebound.
STRATEGIC ALLOCATION: CONSERVATIVE
* The fund's performance for the year ended November 30, 1999, reflected weak
bond returns and the healthy performance of stocks.
* The main changes we made to Strategic Conservative over the last year
included:
* reducing our cash position while expanding our stock and bond holdings
* emphasizing corporate bonds, especially those issued by large,
well-known companies
* adding to our holding of value stocks
* shifting some of our foreign holdings from Europe into Japan
* Going forward, we expect to maintain the fund's current positioning, though
we may get slightly defensive in early 2000.
STRATEGIC ALLOCATION: MODERATE
* The fund's performance for the year ended November 30, 1999, reflected the
healthy performance of stocks and weak bond returns.
* The main changes we made to Strategic Moderate over the last year included:
* reducing our cash position while expanding our stock holdings
* adding to our value stock holdings while maintaining a balance between
value and growth stocks
* emphasizing corporate bonds, especially those issued by large,
well-known companies
* shifting some of our foreign holdings from Europe into Japan
* Going forward, we expect to maintain the fund's current positioning, though
we may get slightly defensive in early 2000.
STRATEGIC ALLOCATION: AGGRESSIVE
* The fund's performance for the year ended November 30, 1999, reflected the
healthy performance of stocks and weak bond returns.
* The main changes we made to Strategic Aggressive over the last year
included:
* reducing our cash and bond positions while expanding our stock holdings
* adding to our value stocks while maintaining a growth-oriented
portfolio
* shifting some of our foreign holdings from Europe into Japan
* emphasizing corporate bonds, especially those issued by large,
well-known companies
* Going forward, we expect to maintain the fund's current positioning, though
we may get slightly defensive in early 2000.
[left margin]
CONSERVATIVE(1)
(TWSCX)
TOTAL RETURNS: AS OF 11/30/99
6 Months 4.53%(2)
1 Year 8.47%
INCEPTION DATE: 2/15/96
NET ASSETS: $176.0 million(3)
MODERATE(1)
(TWSMX)
TOTAL RETURNS: AS OF 11/30/99
6 Months 10.21%(2)
1 Year 16.97%
INCEPTION DATE: 2/15/96
NET ASSETS: $391.6 million(3)
AGGRESSIVE(1)
(TWSAX)
TOTAL RETURNS: AS OF 11/30/99
6 Months 16.49%(2)
1 Year 25.69%
INCEPTION DATE: 2/15/96
NET ASSETS: $206.2 million(3)
(1) Investor Class.
(2) Not annualized.
(3) Includes Investor and Advisor classes.
See Total Returns on pages 5, 19, and 36.
Investment terms are defined in the Glossary on pages 68-69.
2 1-800-345-2021
Market Perspective from Jeff Tyler
--------------------------------------------------------------------------------
[photo of Jeff Tyler]
Jeff Tyler, senior vice president and lead manager of the Strategic Asset
Allocation funds
THEN AND NOW
What a difference a year makes. In late 1998, U.S. interest rates were at
all-time lows, the U.S. stock market had just been through a dramatic decline
and resurgence, and foreign markets were in turmoil after catastrophic economic
troubles in Asia and Latin America.
Fast forward to November 1999. In the intervening year, overseas economies
and markets stabilized, domestic interest rates rose substantially, and the
stock market was surging again after a mid-year hiccup.
U.S. STOCKS
As they have throughout the decade, domestic stocks performed very well
during the year ended November 30, 1999. All of the major stock indices posted
double-digit returns despite a hiatus that lasted for much of the summer.
For example, the S&P 500 index--a well-known barometer of large-company
stocks--returned more than 20% during the past year (see the table at right),
but the index fell by more than 3% between the first of May and the end of
September.
In 1998, the mantra in the U.S. stock market was "bigger is
better"--in a somewhat volatile stock-market environment, investors favored
the shares of large, seasoned, well-known companies that they could buy or sell
at a moment's notice. In 1999, the refrain became "technology is the
future"--investors embraced the potential of electronic commerce and bid up
the stock prices of "dot-coms" and other Internet- and
computer-related companies.
As a result, the technology sector outperformed the rest of the market by a
wide margin. The Nasdaq Composite Index, which is dominated by technology
stocks, returned nearly 75% over the past year, and the S&P 500's return
would have been essentially flat without the contributions of the technology
shares in the index.
The popularity of technology stocks extended to companies of all sizes,
which helped boost the performance of some small- and mid-cap stocks that had
been ignored during the "bigger is better" trend in 1998.
That left value stocks--those considered to be undervalued relative to
their earnings growth--out in the cold. Most value stocks tend to be traditional
bricks-and-mortar businesses, and they simply couldn't compete with the
excitement generated by technology shares.
FOREIGN STOCKS
Stock performance overseas was also very good, with broad foreign stock
indexes posting returns similar to those in the U.S. over the past year.
The big story was Japan--after a decade of recession, the country's economy
started to show some evidence of growth, which sparked a rebound in its stock
market and a surge in the value of its currency. Japan's stock-market
performance, combined with currency gains, produced returns in excess of 40% for
U.S. investors.
[right margin]
"INVESTORS EMBRACED THE POTENTIAL OF ELECTRONIC COMMERCE AND BID UP THE
STOCK PRICES OF 'DOT-COMS' AND OTHER INTERNET- AND COMPUTER-RELATED
COMPANIES."
U.S. STOCK MARKET PERFORMANCE
FOR THE YEAR ENDED NOVEMBER 30, 1999
S&P 500 20.92%
S&P MIDCAP 400 21.37%
S&P SMALLCAP 600 10.54%
FOREIGN STOCK MARKET PERFORMANCE
(IN U.S. DOLLARS)
FOR THE YEAR ENDED NOVEMBER 30, 1999
MORGAN STANLEY EAFE(reg.tm) INDEX 21.10%
Morgan Stanley Europe Index 9.72%
Morgan Stanley Far East Index 57.25%
Morgan Stanley Emerging
Markets Latin American Index 30.75%
MORGAN STANLEY EAFE(reg.tm) INDEX
(IN LOCAL CURRENCIES) 24.37%
Source: Bloomberg Financial Markets and Lipper Inc.
Indices are defined on page 67.
www.americancentury.com 3
Market Perspective from Jeff Tyler
--------------------------------------------------------------------------------
(Continued)
Southeast Asia also made a comeback after a disastrous 1998. In particular,
countries such as South Korea and Malaysia experienced a solid economic
turnaround, leading to spectacular gains in both their currencies and their
stock markets.
Stock returns were also favorable in other emerging markets, such as those
in Latin America and Eastern Europe. Improved economic stability and increased
demand from investors provided a boost to these markets.
In Europe, moderate economic growth and a continued trend toward
privatization helped stocks put together another year of solid returns. However,
a 15% decline in the new euro currency weakened European stock returns for U.S.
investors.
U.S. BONDS
In 1999, U.S. bonds had their worst year since 1994. Inflation fears and
rising interest rates created a difficult environment for domestic bonds.
In late 1998, global economic turmoil and volatile financial markets led
the Federal Reserve (the U.S. central bank) to cut short-term interest rates
three times. The Fed's strategy was successful--overseas economies stabilized,
investor confidence returned, and the financial markets settled down.
But the Fed's rate cuts also provided fuel to a domestic economic engine
that was already cruising at high speed. As evidence of rising inflation began
to appear in mid-1999, the Fed reversed course, raising short-term rates three
times in five months. By the end of November, Treasury bond yields were more
than 150 basis points (or 1.5%) higher than they were a year earlier.
Mortgage-backed securities were the best-performing sector of the U.S. bond
market. Mortgage-backed bonds were hurt by heavy mortgage refinancing activity
in 1998, but rising interest rates helped reduce prepayments in 1999.
Treasury bonds were the worst performers among U.S. bonds. Treasury prices
tend to experience the most dramatic fluctuations as interest rates change, and
the past year was no exception. The 30-year Treasury bond returned -13% for the
year ended November 30.
Corporate bonds performed very well in late 1998 and early 1999, but they
struggled during the remainder of the year. Lower interest rates encouraged
corporations to issue new debt, which led to record corporate bond issuance in
the second and third quarters of 1999.
FOREIGN BONDS
As with the U.S. market, foreign bond returns were fairly weak, reflecting
a general rise in global interest rates. However, currency fluctuations had a
more significant impact on overseas bond returns.
As economic growth began to pick up in Europe, interest rates rose
modestly, resulting in flat returns for much of the region's bonds. But the
euro's 15% decline against the U.S. dollar produced currency losses for U.S.
investors.
In Japan, bond yields fell after rising sharply in late 1998. In addition
to positive bond returns, the Japanese yen rose substantially against the
dollar, so U.S. investors benefited from sizable currency gains as well.
[left margin]
"INFLATION FEARS AND RISING INTEREST RATES CREATED A DIFFICULT ENVIRONMENT
FOR BONDS."
U.S. BOND MARKET PERFORMANCE
FOR THE YEAR ENDED NOVEMBER 30, 1999
LEHMAN AGGREGATE BOND INDEX -0.04%
Lehman Treasury Bond Index -1.71%
Lehman Corporate Bond Index -1.15%
Lehman Mortgage-Backed
Securities Index 2.54%
FOREIGN BOND MARKET PERFORMANCE
(IN U.S. DOLLARS)
FOR THE YEAR ENDED NOVEMBER 30, 1999
SALOMON NON-U.S. WORLD
GOVERNMENT BOND INDEX -2.30%
Salomon European Government
Bond Index -11.97%
Salomon Japan Government
Bond Index 19.01%
SALOMON NON-U.S. WORLD
GOVERNMENT BOND INDEX
(IN LOCAL CURRENCIES) -0.60%
Source: Lipper Inc. and Bloomberg Financial Markets
Indices are defined on page 67.
4 1-800-345-2021
Strategic Conservative--Performance
--------------------------------------------------------------------------------
TOTAL RETURNS AS OF NOVEMBER 30, 1999
INVESTOR CLASS (INCEPTION 2/15/96) ADVISOR CLASS (INCEPTION 10/2/96)
LEHMAN THREE-MONTH LEHMAN THREE-MONTH
STRATEGIC AGGREGATE U.S. STRATEGIC AGGREGATE U.S.
CONSERVATIVE S&P 500 BOND INDEX TREASURY BILL CONSERVATIVE S&P 500 BOND INDEX TREASURY BILL
========================================================================================================================
6 MONTHS(1) 4.53% 7.38% 0.72% 2.39% 4.60% 7.38% 0.72% 2.39%
1 YEAR 8.47% 20.92% -0.04% 4.67% 8.32% 20.92% -0.04% 4.67%
========================================================================================================================
AVERAGE ANNUAL RETURNS
3 YEARS 9.58% 24.33% 5.57% 4.93% 9.37% 24.33% 5.57% 4.93%
LIFE OF FUND 9.46% 24.19% 6.00%(2) 4.97%(2) 10.02% 26.52% 6.57%(3) 4.93%(3)
(1) Returns for periods less than one year are not annualized.
(2) Since 2/29/96, the date nearest the class's inception for which data are
available.
(3) Since 9/30/96, the date nearest the class's inception for which data are
available.
See pages 66-68 for more information about share classes, returns, and the
comparative indices.
[mountain graph - data below]
GROWTH OF $10,000 OVER LIFE OF FUND
Value on 11/30/99
S&P 500 $23,102
Strategic Conservative $14,254
Lehman Aggregate $12,441
Three-Month T-Bill $11,992
Strategic Lehman Three-Month
Conservative S&P 500 Aggregate T-Bill
DATE VALUE VALUE VALUE VALUE
2/29/1996 $10,000 $10,000 $10,000 $10,000
3/31/1996 $10,044 $10,096 $9,930 $10,041
4/30/1996 $10,145 $10,244 $9,874 $10,082
5/31/1996 $10,186 $10,509 $9,855 $10,125
6/30/1996 $10,222 $10,549 $9,987 $10,167
7/31/1996 $10,038 $10,082 $10,014 $10,211
8/31/1996 $10,160 $10,295 $9,997 $10,254
9/30/1996 $10,441 $10,875 $10,171 $10,297
10/31/1996 $10,585 $11,175 $10,396 $10,339
11/30/1996 $10,831 $12,020 $10,574 $10,382
12/31/1996 $10,772 $11,782 $10,476 $10,425
1/31/1997 $10,876 $12,518 $10,508 $10,469
2/28/1997 $10,814 $12,616 $10,535 $10,513
3/31/1997 $10,636 $12,097 $10,418 $10,558
4/30/1997 $10,761 $12,819 $10,574 $10,603
5/31/1997 $11,117 $13,600 $10,674 $10,648
6/30/1997 $11,384 $14,211 $10,801 $10,691
7/31/1997 $11,828 $15,341 $11,093 $10,736
8/31/1997 $11,640 $14,481 $10,999 $10,783
9/30/1997 $12,051 $15,275 $11,160 $10,827
10/31/1997 $11,899 $14,765 $11,322 $10,871
11/30/1997 $12,008 $15,448 $11,374 $10,919
12/31/1997 $12,154 $15,714 $11,489 $10,966
1/31/1998 $12,200 $15,889 $11,636 $11,012
2/28/1998 $12,567 $17,034 $11,627 $11,058
3/31/1998 $12,872 $17,906 $11,666 $11,105
4/30/1998 $12,918 $18,087 $11,727 $11,150
5/31/1998 $12,895 $17,776 $11,839 $11,197
6/30/1998 $13,031 $18,498 $11,939 $11,243
7/31/1998 $12,961 $18,300 $11,964 $11,289
8/31/1998 $12,284 $15,657 $12,159 $11,335
9/30/1998 $12,646 $16,656 $12,444 $11,378
10/31/1998 $12,881 $18,012 $12,378 $11,416
11/30/1998 $13,140 $19,105 $12,448 $11,458
12/31/1998 $13,434 $20,206 $12,486 $11,501
1/31/1999 $13,482 $21,051 $12,574 $11,542
2/28/1999 $13,116 $20,396 $12,354 $11,585
3/31/1999 $13,364 $21,212 $12,422 $11,628
4/30/1999 $13,758 $22,033 $12,462 $11,669
5/31/1999 $13,634 $21,513 $12,352 $11,713
6/30/1999 $13,868 $22,709 $12,313 $11,758
7/31/1999 $13,794 $21,998 $12,260 $11,802
8/31/1999 $13,719 $21,890 $12,254 $11,848
9/30/1999 $13,649 $21,290 $12,396 $11,895
10/31/1999 $13,949 $22,638 $12,442 $11,942
11/30/1999 $14,254 $23,102 $12,441 $11,992
$10,000 investment made 2/29/96(2)
The graph at left shows the growth of a $10,000 investment over the life of the
fund, while the graph below shows the fund's year-by-year performance. The
S&P 500, Lehman Aggregate Bond, and Three-Month U.S. Treasury Bill (T-Bill)
indices are provided for comparison in each graph. Strategic Conservative's
total returns include operating expenses (such as transaction costs and
management fees) that reduce returns, while the total returns of the indices do
not. The graphs are based on Investor Class shares only; performance for other
classes will vary due to differences in fee structures (see the Total Returns
table above). Past performance does not guarantee future results. Investment
return and principal value will fluctuate, and redemption value may be more or
less than original cost.
[bar graph - data below]
ONE-YEAR RETURNS OVER LIFE OF FUND (PERIODS ENDING NOVEMBER 30)
Strategic Lehman Three-Month
Conservative S&P 500 Aggregate T-Bill
DATE RETURN RETURN RETURN RETURN
11/30/96* 8.32% 20.18% 5.75% 3.82%
11/30/97 10.87% 28.56% 7.55% 5.17%
11/30/98 9.43% 23.66% 9.45% 4.56%
11/30/99 8.47% 20.92% -0.04% 4.67%
* From 2/29/96 (the date nearest the class's inception for which index data are
available) to 11/30/96.
www.americancentury.com 5
Strategic Conservative--Q&A
--------------------------------------------------------------------------------
An interview with Jeff Tyler and Brian Howell, portfolio managers on the
American Century Strategic Asset Allocation funds management team.
HOW DID STRATEGIC CONSERVATIVE PERFORM DURING THE YEAR ENDED NOVEMBER 30, 1999?
The fund's performance reflected the weak returns of bonds and the healthy
performance of stocks. For the fiscal year, Strategic Conservative posted a
total return of 8.47%.* (See the previous page for other fund performance
information.)
HOW DID THE FUND'S ASSET MIX CHANGE DURING THE FISCAL YEAR?
We tend to keep Strategic Conservative's asset mix close to its neutral
position of 45% bonds, 40% stocks, and 15% cash. From there, we try to make some
modest adjustments to add value.
The main change we made over the last year was to reduce the portfolio's
cash position to less than 10% while expanding our stock and bond holdings.
LET'S TALK ABOUT BONDS FIRST BECAUSE THEY'RE THE FUND'S LARGEST HOLDING. WHY DID
YOU OVERWEIGHT BONDS?
We were cautiously optimistic about bonds early in the year. At that time,
the general expectation was that the economic problems in Asia and Russia would
be a drag on the U.S. economy, and we'd see a bit of a slowdown. This situation
would be beneficial for bonds.
But that didn't happen--economic growth remained strong, and the resulting
rise in interest rates hurt bond prices. We began to cut back our overweight in
bonds at mid-year, but at the same time we expanded our holdings of corporate
bonds.
WHAT WAS THE ATTRACTION OF CORPORATE BONDS?
A strong economy is good for corporate bonds--companies are more likely to
be able to pay off their debts when business is good. In addition, the yield
difference between corporate and Treasury bonds had grown unusually large,
meaning corporate bond yields looked very attractive compared with Treasury
yields.
We were overweight corporate bonds and underweight Treasurys for most of
the fiscal year. In general, this was a good strategy because corporate bonds
outperformed Treasury bonds, but there was a wide performance disparity within
the corporate bond market.
CAN YOU ELABORATE ON THIS DISPARITY?
Sentiment in the corporate bond market shifted, becoming much more risk
averse. For a variety of reasons--Y2K, inflation fears, the health of the
economy, a lack of liquidity in the market--bond investors simply have a much
smaller appetite for risk than they've had in the past few years.
As a result, bonds issued by name-brand companies with strong credit
credentials were well rewarded, while bonds whose credit quality weakened were
severely punished.
DID YOU MAKE ANY ADJUSTMENTS BASED ON THIS TREND?
Yes. We emphasized bonds issued by large, well-known companies like Ford
Motor, Pepsi, and Wal-Mart. Bond investors have been more comfortable holding
these well-known companies, similar to the way stock investors gravitated to
big-name companies in 1998.
[left margin]
"THE MAIN CHANGE WE MADE OVER THE LAST YEAR WAS TO REDUCE THE PORTFOLIO'S
CASH POSITION TO LESS THAN 10% WHILE EXPANDING OUR STOCK AND BOND
HOLDINGS."
[pie chart - data below]
ASSET ALLOCATION
(AS OF NOVEMBER 30, 1999)
PERCENT OF FUND INVESTMENTS
U.S. Stocks 37%
Foreign Stocks 10%
U.S. Bonds 42%
Foreign Bonds 4%
Money Market
Securities 7%
See page 67 for the fund's neutral asset mix.
Investment terms are defined in the Glossary on pages 68-69.
* All fund returns referenced in this interview are for Investor Class shares.
6 1-800-345-2021
Strategic Conservative--Q&A
--------------------------------------------------------------------------------
(Continued)
SPEAKING OF STOCKS, HOW WAS STRATEGIC CONSERVATIVE'S STOCK PORTFOLIO POSITIONED
For much of the fiscal year, we were overweight value stocks, which are
those considered to be undervalued based on their earnings growth. This was a
drag on performance because value shares were left in the dust by technology and
other growth stocks.
Over the past year, the S&P 500/BARRA Growth Index returned more than
28%, while the S&P 500/BARRA Value Index returned about 12%. This
growth/value performance gap was even more pronounced among small- and mid-cap
stocks.
IF THE FUND WAS OVERWEIGHT VALUE STOCKS, DOES THAT MEAN THE PORTFOLIO WAS
UNDERWEIGHT GROWTH STOCKS?
Not really. We maintained a neutral position in growth stocks, and that
included some exposure to the technology sector. For example, two of the fund's
ten biggest stock holdings were technology companies, and three of its five
largest industry holdings were technology-oriented.
IN THE PORTFOLIO'S FOREIGN SECURITIES, YOU BOOSTED YOUR ASIAN HOLDINGS WHILE
REDUCING YOUR EUROPEAN EXPOSURE (SEE THE CHART AT RIGHT). WHY?
It was mainly a shift into Japan. We began to overweight Japanese stocks in
early 1999 because we liked the prospects there. We still saw favorable
opportunities in Europe, but we thought Japan had the highest potential for
extraordinary gains.
Our biggest foreign holdings reflect this shift. Six months ago, our top
five foreign stocks were all in Europe. Now, four of our top five are Japanese
companies (see the table at right).
This move into Japan paid off--although Europe had good equity returns, the
Japanese stock market skyrocketed. In addition, we suffered currency losses on
our European investments, whereas we earned currency gains on our Japanese
holdings.
LOOKING AHEAD, WHAT ARE YOUR PLANS FOR STRATEGIC CONSERVATIVE'S ASSET ALLOCATION
STRUCTURE?
We're sticking to the basics. Long term, that means staying true to our
conservative asset mix of 45% bonds, 40% stocks, and 15% cash. As in the past
year, though, we expect to stay underweight in cash and continue to focus on
corporate bonds and domestic stocks.
That said, we may become a little more defensive in the early part of 2000,
cutting back on stocks and adding to our cash position.
WHY THE DEFENSIVE POSTURE?
We expect a bit of a letdown in the stock market in the first part of next
year. At the start of 1999, everyone was worrying about Y2K's effect on the
market. The general expectation was that investors would flee the market at the
end of the year and then jump back in after Y2K was out of the way. In other
words, there would be a "relief" rally in the first quarter of 2000.
[right margin]
FUND'S U.S. STOCKS (AS OF NOVEMBER 30, 1999)
NUMBER OF COMPANIES 326
DIVIDEND YIELD 1.46%
PRICE/EARNINGS RATIO 22.2
% OF FUND'S % OF
U.S. STOCKS FUND
TOP 5 U.S. STOCKS
SUMMIT BANCORP. 2.0% 0.7%
MICROSOFT CORP. 1.9% 0.7%
KEYCORP 1.8% 0.7%
FIRST VIRGINIA BANKS, INC. 1.7% 0.6%
JDS UNIPHASE CORP. 1.7% 0.6%
FUND'S FOREIGN STOCKS (AS OF NOVEMBER 30, 1999)
NUMBER OF COMPANIES 118
DIVIDEND YIELD 0.77%
% OF FUND'S % OF
COUNTRY FOREIGN STOCKS FUND
TOP 5 FOREIGN STOCKS
MANNESMANN AG GERMANY 4.1% 0.4%
SONY CORP. JAPAN 3.1% 0.3%
NTT MOBILE
COMMUNICATIONS
NETWORK, INC. JAPAN 3.0% 0.3%
SOFTBANK CORP. JAPAN 2.8% 0.3%
KYOCERA CORP. JAPAN 2.0% 0.2%
[pie chart - data below]
PERCENT OF FUND'S FOREIGN STOCKS
Europe 67%
Asia/Pacific 30%
Americas
(excluding U.S.) 3%
www.americancentury.com 7
Strategic Conservative--Q&A
--------------------------------------------------------------------------------
(Continued)
But now just about everybody thinks that Y2K will be a non-event, so there
probably won't be a mass exodus at year-end or a big relief rally after the
first of the year. In fact, there's been such a strong surge in the market over
the last couple of months that we think stocks will go through a cooling-off
period in the coming months. This has happened frequently in the past few years
after a sudden and dramatic rally.
WHAT ABOUT THE PORTFOLIO'S BOND HOLDINGS?
We're still finding compelling values in corporate bonds, so we expect to
remain overweight there. The continued strength of the U.S. economy, as well as
the economic rebound elsewhere in the world, bodes well for corporate bonds.
However, we think the domestic economy's healthy growth rate will lead the
Federal Reserve to raise short-term interest rates again in the first quarter of
2000. As a result, we could see bond yields rise a little further in the coming
months.
HOW WILL YOU POSITION THE FUND'S FOREIGN HOLDINGS?
We may bring some capital back home from our investments abroad. We've had
a great deal of success in Europe over the past several years, so we may take
some profits and reinvest the money domestically as we position the fund more
defensively.
We still like prospects in Japan--the economy, though still fragile,
continues to improve, and that should be good for the stock market. We intend to
maintain our overweight in Japanese stocks.
[left margin]
"WE MAY BECOME A LITTLE MORE DEFENSIVE IN THE EARLY PART OF 2000, CUTTING
BACK ON STOCKS AND ADDING TO OUR CASH POSITION."
FUND'S U.S. BONDS (AS OF NOVEMBER 30, 1999)
NUMBER OF SECURITIES 112
WEIGHTED AVERAGE MATURITY 8.5 YRS
AVERAGE DURATION 5.0 YRS
[pie chart - data below]
PERCENT OF FUND'S U.S. BONDS
Corporate 31%
U.S. Govt. Agency 13%
Asset-Backed 7%
U.S. Treasury 21%
Mortgage-Backed 28%
FUND'S FOREIGN BONDS (AS OF NOVEMBER 30, 1999)
NUMBER OF SECURITIES 7
WEIGHTED AVERAGE MATURITY 5.9 YRS
AVERAGE DURATION 5.0 YRS
[pie chart - data below]
PERCENT OF FUND'S FOREIGN BONDS
Europe 68%
Asia/Pacific 29%
Americas
(excluding U.S.) 3%
8 1-800-345-2021
Strategic Conservative--Schedule of Investments
--------------------------------------------------------------------------------
This schedule lists all investments owned by the fund, as well as each
security's market value, as of the last day of the reporting period. The
securities are grouped by asset class (such as common stocks, corporate bonds,
temporary cash investments, as applicable), and some asset classes are further
broken down by industry or country.
NOTE: For securities denominated in foreign currencies, the market value is
translated into U.S. dollars based on exchange rates as of the last day of the
reporting period.
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 46.8%
ALCOHOL(1)
800 Coors (Adolph) Co. Cl B $ 39,800
------------
APPAREL & TEXTILES -- 0.3%
1,600 Gucci Group N.V. New
York Shares 133,200
900 Jones Apparel Group, Inc.(2) 24,019
9,900 VF Corp. 295,762
------------
452,981
------------
BANKS -- 4.7%
2,200 Argentaria SA ORD 50,327
11,800 Banca Intesa S.p.A. ORD 50,420
17,100 Bank of America Corp. 1,000,350
2,500 Barclays PLC ORD 72,287
5,500 Chase Manhattan Corp. 424,875
4,650 Citigroup Inc. 250,519
6,000 Dai-Ichi Kangyo Bank Ltd. ORD 69,317
1,000 DePfa Deutsche Pfandbriefbank
AG ORD 75,581
600 Fifth Third Bancorp 41,981
14,300 First Union Corp. 553,231
24,500 First Virginia Banks, Inc. 1,111,688
900 Fleet Boston Financial Corp. 34,031
43,600 KeyCorp 1,177,200
7,200 Lloyds TSB Group plc ORD 92,304
9,600 Mellon Bank Corp. 349,800
900 Old Kent Financial Corp. 36,506
4,800 PNC Bank Corp. 267,600
900 Republic New York Corp. 63,619
500 Societe Generale Cl A ORD 107,829
9,000 Sumitomo Bank, Ltd. (The) ORD 138,251
38,900 Summit Bancorp. 1,269,085
4,800 UnionBanCal Corp. 211,500
6,100 Wachovia Corp. 472,369
4,400 Wells Fargo & Co. 204,600
1,400 Zions Bancorporation 90,344
------------
8,215,614
------------
CHEMICALS -- 1.2%
4,400 Air Products and Chemicals, Inc. 142,450
2,600 Dow Chemical Co. 304,525
3,600 du Pont (E.I.) de Nemours & Co. 213,975
1,777 Illinois Tool Works Inc. 115,061
18,300 IMC Global Inc. 295,088
5,600 Lubrizol Corp. 153,300
Shares Value
--------------------------------------------------------------------------------
9,300 Minnesota Mining &
Manufacturing Co. $ 888,731
200 Symyx Technologies Inc.(2) 6,888
------------
2,120,018
------------
CLOTHING STORES -- 0.1%
1,500 AnnTaylor Stores Corp.(2) 64,781
1,900 Talbots, Inc. 92,150
------------
156,931
------------
COMPUTER HARDWARE &
BUSINESS MACHINES -- 1.9%
7,700 Adaptec, Inc.(2) 415,078
10,200 Cisco Systems Inc.(2) 909,394
5,800 Compaq Computer Corp. 141,738
3,800 Electronics for Imaging, Inc.(2) 168,981
3,700 EMC Corp. (Mass.)(2) 309,181
900 Emulex Corp.(2) 146,138
300 Foundry Networks, Inc.(2) 70,641
3,800 Hewlett-Packard Co. 360,525
800 Immersion Corp.(2) 21,375
3,700 International Business
Machines Corp. 381,331
500 SanDisk Corp.(2) 33,016
10,600 Xerox Corp. 286,862
------------
3,244,260
------------
COMPUTER SOFTWARE -- 2.0%
2,000 Active Software, Inc.(2) 126,125
2,600 Amdocs Ltd.(2) 91,488
16,000 Autodesk, Inc. 470,500
600 BMC Software, Inc.(2) 43,706
100 CacheFlow Inc.(2) 15,119
1,700 Computer Associates
International, Inc. 110,500
2,200 Comverse Technology, Inc.(2) 265,925
600 Cysive, Inc.(2) 30,150
290 Intershop Communications
AG ORD(2) 57,856
200 Liberate Technologies, Inc.(2) 25,550
13,700 Microsoft Corp.(2) 1,247,128
2,050 National Instruments Corp.(2) 61,564
1,500 ONYX Software Corp.(2) 48,281
3,400 Oracle Corp.(2) 230,456
5,800 Parametric Technology Corp.(2) 131,225
1,300 Proxicom, Inc.(2) 89,294
2,300 Radiant Systems, Inc.(2) 56,997
1,500 Rational Software Corp.(2) 76,594
1,000 Sapient Corp.(2) 77,469
600 Symantec Corp.(2) 27,994
See Notes to Financial Statements www.americancentury.com 9
Strategic Conservative--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
4,900 Unisys Corp.(2) $ 140,875
2,900 USWeb Corp.(2) 120,078
------------
3,544,874
------------
CONSTRUCTION & REAL PROPERTY -- 0.2%
600 Centex Construction Products Inc. 20,962
1,500 Centex Corp. 35,625
1,800 Elcor Corp. 58,275
58 Holderbank Financiere Glarus
AG Cl B ORD 72,682
2,300 Insituform Technologies, Inc. Cl A(2) 57,644
600 Lafarge SA ORD 56,625
1,900 Pinnacle Holdings Inc.(2) 54,209
1,700 Quanta Services, Inc.(2) 47,600
------------
403,622
------------
CONSUMER DURABLES(1)
3,600 Assa Abloy AB Cl B ORD 42,107
------------
DEFENSE/AEROSPACE -- 0.6%
8,700 Boeing Co. 355,069
4,287 British Aerospace PLC ORD 24,569
1,200 General Dynamics Corp. 61,875
18,100 Lockheed Martin Corp. 359,738
7,000 Raytheon Co. Cl B 214,812
------------
1,016,063
------------
DEPARTMENT STORES -- 0.8%
3,700 Ames Department Stores, Inc.(2) 98,166
9,200 May Department Stores Co. (The) 309,350
900 Pinault-Printemps-Redoute
SA ORD 187,744
3,000 ShopKo Stores, Inc.(2) 68,062
14,100 Wal-Mart Stores, Inc. 812,512
------------
1,475,834
------------
DRUGS -- 2.1%
6,200 Amgen Inc.(2) 282,294
1,000 Andrx Corp.(2) 51,469
2,600 AstraZeneca Group plc ORD 116,215
800 Biogen, Inc.(2) 58,425
6,400 Bristol-Myers Squibb Co. 467,600
2,500 ChiRex Inc.(2) 86,797
2,100 Chiron Corp.(2) 68,841
1,100 Forest Laboratories, Inc.(2) 56,306
1,400 Genzyme Corp.(2) 50,356
700 IGEN International, Inc.(2) 17,938
3,400 IVAX Corp.(2) 69,062
1,755 MedImmune, Inc.(2) 210,874
95 Novartis AG ORD 148,079
636 Novo Nordisk A/S Cl B ORD 83,111
8,000 Pfizer, Inc. 289,500
3,800 Pharmacia & Upjohn Inc. 207,812
3,300 Protein Design Labs, Inc.(2) 132,206
9,500 Schering-Plough Corp. 485,688
400 SciQuest.com, Inc.(2) 13,188
2,000 Takeda Chemical Inds. ORD 118,178
Shares Value
--------------------------------------------------------------------------------
6,600 Warner-Lambert Co. $ 591,938
------------
3,605,877
------------
ELECTRICAL EQUIPMENT -- 4.2%
1,100 Advanced Energy Industries, Inc.(2) 37,022
994 Alcatel Alsthom Compagnie
Generale ORD 192,828
2,300 ANTEC Corp.(2) 128,800
2,300 C-COR.net Corp.(2) 117,947
1,500 Celestica Inc. New York Shares(2) 105,375
3,200 CIENA Corp.(2) 140,500
3,000 Corning Inc. 281,062
2,600 DII Group, Inc.(2) 164,288
1,100 DSP Group, Inc.(2) 76,244
2,100 Ericsson (L.M.) Telephone Co.
ADR 101,259
6,000 Fujitsu Ltd. ORD 213,192
1,400 Harmonic Lightwaves, Inc.(2) 84,262
19,000 Hitachi Ltd. ORD 262,956
4,800 JDS Uniphase Corp.(2) 1,097,850
300 Keyence Corporation ORD 85,395
800 KLA-Tencor Corporation(2) 67,675
6,000 Lucent Technologies Inc. 438,375
10,000 Marconi plc ORD 128,040
1,000 Matsushita Communication
Industrial Co., Ltd. ORD 192,383
4,000 Matsushita Electric Industrial Co.,
Ltd. ORD 101,492
2,200 Motorola, Inc. 251,350
4,000 NEC Corp. ORD 93,640
2,100 Nokia Corp. Cl A ADR 290,194
5,200 Nortel Networks Corp. New
York Shares 384,800
4,000 Omron Corp. ORD 97,958
600 Optical Coating Laboratory, Inc. 118,031
2,012 Phillips Electronics N.V. New
York Shares 240,434
6,800 Pinnacle Systems, Inc.(2) 223,975
1,500 Powerwave Technologies, Inc.(2) 89,578
800 Sanmina Corp.(2) 76,800
2,800 Sawtek Inc.(2) 127,750
1,400 Scientific-Atlanta, Inc. 81,638
1,300 Siemens AG ORD 130,876
1,900 Solectron Corp.(2) 156,512
3,000 Sony Corp. ORD 556,537
3,200 Teradyne, Inc.(2) 139,400
2,000 Tokyo Electron Ltd. ORD 208,088
------------
7,284,506
------------
ELECTRICAL UTILITIES -- 1.2%
2,100 AES Corp. (The)(2) 121,669
3,400 Calpine Corp.(2) 200,600
6,500 Florida Progress Corp. 277,875
20,800 FPL Group, Inc. 910,000
3,400 Minnesota Power & Light Co. 58,225
2,500 Reliant Energy, Inc. 62,031
7,281 Sierra Pacific Resources 130,603
10 1-800-345-2021 See Notes to Financial Statements
Strategic Conservative--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
3,000 Southern Co. $ 70,125
3,800 Texas Utilities Co. 136,088
3,300 Tokyo Electric Power Co. ORD 93,124
------------
2,060,340
------------
ENERGY RESERVES & PRODUCTION -- 2.0%
5,400 Amerada Hess Corp. 312,862
1,300 Anadarko Petroleum Corp. 39,162
3,100 Apache Corp. 111,019
4,500 Atlantic Richfield Co. 433,688
21,100 Burlington Resources Inc. 709,488
1,600 Chevron Corp. 141,700
4,000 EOG Resources Inc. 74,000
8,900 Exxon Mobil Corp.(2) 705,881
1,600 Mobil Corp. 166,900
6,200 Murphy Oil Corp. 350,300
600 Noble Affiliates, Inc. 13,200
1,900 Pogo Producing Co. 34,200
7,400 Union Pacific Resources 96,662
10,500 Unocal Corp. 348,469
1,600 Vintage Petroleum, Inc. 17,100
------------
3,554,631
------------
ENTERTAINMENT(1)
1,300 Carnival Corp. Cl A 57,362
------------
ENVIRONMENTAL SERVICES -- 0.4%
41,982 Waste Management, Inc. 682,208
------------
FINANCIAL SERVICES -- 0.7%
13,900 Amvescap Plc ORD 143,779
700 Credit Suisse Group ORD 130,942
3,900 Fannie Mae 259,838
2,000 Federal Home Loan Mortgage
Corporation 98,750
1,300 Gallagher (Arthur J.) & Co. 70,850
2,201 ING Groep N.V. ORD 123,879
800 NCO Group, Inc.(2) 37,050
800 Providian Financial Corp. 63,300
12,700 Skandia Forsakrings AB ORD 303,810
------------
1,232,198
------------
FOOD & BEVERAGE -- 2.0%
1,200 American Italian Pasta Co. Cl A(2) 36,075
74,761 Archer-Daniels-Midland Co. 929,840
2,900 Coca-Cola Company (The) 195,206
5,200 Coca-Cola Enterprises, Inc. 110,175
1,500 ConAgra, Inc. 36,188
1,600 Earthgrains Company 29,000
400 Groupe Danone ORD 92,834
1,200 Hormel Foods Corp. 53,475
4,200 IBP, Inc. 92,662
41,000 Interstate Bakeries Corp. 722,625
3,200 Keebler Foods Co.(2) 88,200
39 Nestle S.A. ORD 70,182
4,100 PepsiCo, Inc. 141,706
3,200 Quaker Oats Co. (The) 208,800
Shares Value
--------------------------------------------------------------------------------
2,000 Suiza Foods Corp.(2) $ 71,875
37,400 Tyson Foods, Inc. Cl A 649,825
------------
3,528,668
------------
FOREST PRODUCTS & PAPER -- 0.5%
1,300 Georgia-Pacific Corp. 51,756
2,667 International Paper Co. 139,184
3,400 Rayonier, Inc. 151,088
13,900 Westvaco Corp. 419,606
1,600 Weyerhaeuser Co. 98,000
------------
859,634
------------
GAS & WATER UTILITIES -- 0.6%
27,000 AGL Resources Inc. 499,500
28,434 Centrica plc ORD 84,487
2,800 LG&E Energy Corp. 56,000
15,500 Washington Gas Light Co. 434,000
------------
1,073,987
------------
GROCERY STORES -- 0.1%
1,934 Koninklijke Ahold NV ORD 61,608
3,000 Kroger Co. (The)(2) 63,938
2,700 Safeway Inc.(2) 99,562
------------
225,108
------------
HEAVY ELECTRICAL EQUIPMENT -- 0.6%
2,861 ABB Ltd. ORD 282,880
1,800 Cable Design Technologies Corp.(2) 43,088
3,800 CommScope, Inc.(2) 160,075
5,000 Cooper Industries, Inc. 214,688
800 Cummins Engine Company, Inc. 32,400
3,800 Emerson Electric Co. 216,600
800 Rockwell International Corp. 39,700
------------
989,431
------------
HOME PRODUCTS -- 0.3%
1,300 Fortune Brands, Inc. 44,444
6,000 Kao Corporation ORD 178,445
3,700 Procter & Gamble Co. (The) 399,600
------------
622,489
------------
HOTELS -- 0.2%
326 Accor SA ORD 74,050
3,100 Harrah's Entertainment, Inc.(2) 85,638
400 MGM Grand, Inc.(2) 19,750
9,300 Park Place Entertainment Corp.(2) 119,738
------------
299,176
------------
INDUSTRIAL PARTS -- 0.5%
6,700 BBA Group plc ORD 53,623
1,400 Brooks Automation, Inc.(2) 38,325
1,800 Cymer, Inc.(2) 71,888
2,200 Ingersoll-Rand Co. 106,562
14,200 Invensys plc ORD 66,239
300 SMC Corp. ORD 53,062
3,800 United Technologies Corp. 214,700
9,400 York International Corp. 209,738
------------
814,137
------------
See Notes to Financial Statements www.americancentury.com 11
Strategic Conservative--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
INDUSTRIAL SERVICES -- 0.3%
7,400 Capita Group Plc ORD $ 134,115
6,700 Compass Group PLC ORD 81,345
1,400 Hertz Corp. Cl A 59,238
800 ISS International Service
System A/S ORD(2) 46,583
1,900 Randstad Holdings N.V. ORD 95,353
3,900 Securitas AB Cl B ORD 64,872
------------
481,506
------------
INFORMATION SERVICES -- 1.2%
398 Altran Technologies SA 189,512
2,700 At Home Corp. Series A(2) 131,203
1,700 BISYS Group, Inc. (The)(2) 98,334
508 Cap Gemini SA ORD 89,896
1,300 CMG plc ORD 68,720
4,200 Diamond Technology Partners
Inc.(2) 219,844
7,500 Dun & Bradstreet Corp. (The) 202,500
3,900 First Data Corp. 168,675
2,400 Getronics N.V. ORD 146,930
7,400 Logica plc ORD 179,096
700 Luminant Worldwide Corp.(2) 21,744
1,400 MedQuist Inc.(2) 39,944
1,600 Navigant Consulting, Inc.(2) 17,000
13 NTT Data Corp. ORD 317,727
1,700 TenFold Corp.(2) 51,319
400 The Management Network
Group, Inc.(2) 13,488
2,300 Valassis Communications, Inc.(2) 90,562
2,100 Young & Rubicam Inc. 109,594
------------
2,156,088
------------
INTERNET -- 0.9%
8,800 America Online Inc.(2) 639,650
300 GetThere.com, Inc.(2) 7,556
400 PlanetRx.com, Inc.(2) 7,875
1,359 PT MULTIMEDIA ORD(2) 53,576
300 RealNetworks, Inc.(2) 41,747
100 Retek Inc.(2) 6,778
43,716 Seat Pagine Gialle SpA ORD 88,991
700 Softbank Corp. ORD 506,380
5,600 Sterling Commerce, Inc.(2) 144,200
300 Tickets.com, Inc.(2) 6,253
1,100 Verity, Inc.(2) 113,816
------------
1,616,822
------------
LEISURE -- 0.2%
3,400 Eastman Kodak Co. 210,375
7,200 GTECH Holdings Corp.(2) 151,200
1,400 Station Casinos, Inc.(2) 33,600
------------
395,175
------------
LIFE & HEALTH INSURANCE -- 0.6%
13,700 Aetna Inc. 748,362
1,033 ASR Verzekeringsgroep N.V. ORD 59,754
Shares Value
--------------------------------------------------------------------------------
4,800 Lincoln National Corp. $ 200,100
9,600 Mediolanum SpA ORD 84,167
------------
1,092,383
------------
MEDIA -- 1.5%
1,100 Acme Communications, Inc.(2) 38,019
7,300 CBS Corp.(2) 379,600
3,500 Charter Communications, Inc.(2) 81,047
3,700 Clear Channel Communications,
Inc.(2) 297,388
1,800 Comcast Corp. Cl A 81,338
1,000 Cox Communications, Inc. Cl A(2) 47,000
5,500 Disney (Walt) Co. 153,312
2,200 EchoStar Communications
Corp. Cl A(2) 145,269
759 EM.TV & Merchandising AG ORD 58,972
3,400 Infinity Broadcasting Corp. Cl A(2) 123,888
9,450 Mediaset SpA ORD 107,613
2,010 Modern Times Group
MTG AB Cl B ORD(2) 66,868
8,900 Mondadori (Arnoldo) Editore
SpA ORD 182,429
7,100 Pearson plc ORD 169,907
500 Radio One, Inc.(2) 31,531
700 Radio Unica Corp.(2) 19,316
1,200 RCN Corp.(2) 54,112
600 Societe Television
Francaise 1 ORD 217,674
1,419 Sogecable, S.A. ORD(2) 44,888
1,800 Viacom, Inc. Cl B(2) 89,550
13,700 WPP Group plc ORD 201,458
------------
2,591,179
------------
MEDICAL PRODUCTS & SUPPLIES -- 0.8%
900 ArthroCare Corp.(2) 54,591
900 Aurora Biosciences Corp.(2) 10,659
1,000 Bard (C.R.), Inc. 54,312
7,300 Beckman Coulter Inc. 348,575
2,700 CONMED Corp.(2) 68,091
1,600 Dexter Corp. (The) 57,800
4,000 Guidant Corp.(2) 200,000
400 IDEC Pharmaceuticals Corp.(2) 50,650
1,600 Johnson & Johnson 166,000
1,000 KeraVision, Inc.(2) 8,906
1,100 Mallinckrodt Inc. 36,575
4,000 Medtronic, Inc. 155,500
1,300 Mentor Corp. 30,306
1,100 VISX, Inc.(2) 85,353
------------
1,327,318
------------
MEDICAL PROVIDERS & SERVICES -- 0.5%
26,800 Columbia/HCA Healthcare Corp. 730,300
3,700 NovaMed Eyecare, Inc.(2) 28,733
1,800 Oxford Health Plans, Inc.(2) 26,381
800 PacifiCare Health Systems, Inc.(2) 37,500
------------
822,914
------------
12 1-800-345-2021 See Notes to Financial Statements
Strategic Conservative--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
MINING & METALS -- 0.1%
2,500 Alcoa Inc. $ 163,750
800 Ball Corporation 29,750
2,400 Maverick Tube Corp.(2) 51,525
1,600 U.S. Aggregates, Inc.(2) 19,000
------------
264,025
------------
MOTOR VEHICLES & PARTS -- 0.9%
27,400 Delphi Automotive Systems Corp. 431,550
6,700 Ford Motor Co. 338,350
900 General Motors Corp. 64,800
1,100 National R.V. Holdings, Inc.(2) 20,488
700 PACCAR Inc. 28,809
16,000 Superior Industries International,
Inc. 429,000
7,000 Toyota Motor Corp. ORD 237,731
------------
1,550,728
------------
MULTI-INDUSTRY -- 0.8%
2,400 CRH plc ORD 48,082
6,800 General Electric Co. (U.S.) 884,000
5,000 Tyco International Ltd. 200,312
4,027 Vivendi ORD 322,628
------------
1,455,022
------------
OIL REFINING -- 0.1%
1,200 BP Amoco Plc ADR 73,125
437 Total SA Cl B ORD 58,175
3,100 Utilicorp United Inc. 62,388
------------
193,688
------------
OIL SERVICES -- 0.5%
10,800 Baker Hughes Inc. 272,700
1,800 Ensco International Inc. 36,112
3,200 R&B Falcon Corp.(2) 39,600
1,700 Global Marine Inc.(2) 26,031
1,700 Pride International Inc.(2) 24,438
2,000 Rowan Companies, Inc.(2) 34,250
6,100 Royal Dutch Petroleum Co. New
York Shares 353,800
------------
786,931
------------
PROPERTY & CASUALTY INSURANCE -- 1.5%
10,400 Allstate Corp. 272,350
2,200 Ambac Financial Group, Inc. 119,900
3,350 American International Group, Inc. 345,888
1,101 Axa ORD 148,566
11,700 Chubb Corp. (The) 626,681
11,100 CNA Financial Corp.(2) 432,900
1,445 Fortis (B) ORD 49,846
23,400 Horace Mann Educators Corp. 513,338
4,900 Prudential Corporation PLC ORD 80,587
------------
2,590,056
------------
PUBLISHING -- 0.3%
9,300 Banta Corp. 204,019
500 Central Newspapers, Inc. Cl A 18,906
3,600 Deluxe Corp. 94,275
Shares Value
--------------------------------------------------------------------------------
500 New York Times Co. (The) Cl A $ 19,219
300 Times Mirror Co. (New) Cl A 19,369
3,200 VNU N.V. ORD 126,896
1,638 Wolters Kluwer NV ORD 49,438
------------
532,122
------------
RAILROADS -- 0.1%
5,500 CSX Corp. 195,594
------------
RESTAURANTS -- 0.4%
1,300 Brinker International, Inc.(2) 29,412
41,500 CBRL Group, Inc. 459,094
6,600 Jack in the Box Inc.(2) 139,012
900 McDonald's Corp. 40,500
800 Tricon Global Restaurants Inc.(2) 33,200
------------
701,218
------------
SECURITIES & ASSET MANAGEMENT -- 0.5%
2,100 Franklin Resources, Inc. 66,019
600 Merrill Lynch & Co., Inc. 48,375
4,700 Morgan Stanley Dean Witter & Co. 566,938
9,000 Nomura Securities Co., Ltd. ORD 160,777
------------
842,109
------------
SEMICONDUCTOR -- 2.1%
4,400 Applied Materials, Inc.(2) 428,862
1,544 ARM Holdings plc ORD(2) 75,957
1,100 ASM Lithography Holding N.V.
New York Shares(2) 102,953
700 Asyst Technologies, Inc.(2) 28,044
4,600 Conexant Systems, Inc.(2) 272,119
7,500 Cypress Semiconductor Corp.(2) 204,375
1,300 Exar Corp.(2) 63,416
3,500 Integrated Device Technology,
Inc.(2) 82,359
2,000 Intel Corp. 153,250
1,000 Kopin Corp.(2) 65,125
3,000 KYOCERA CORP. ORD 362,485
2,800 Lam Research Corp.(2) 216,825
900 Linear Technology Corp. 63,900
3,200 Micron Technology, Inc.(2) 214,800
1,400 National Semiconductor Corp.(2) 59,500
1,200 PerkinElmer, Inc. 49,350
1,000 PMC-Sierra, Inc.(2) 103,031
2,700 PRI Automation, Inc.(2) 127,828
1,000 Qlogic Corp.(2) 113,094
1,800 STMicroelectronics N.V. New
York Shares 224,775
4,000 Texas Instruments Inc. 384,250
2,400 Xilinx, Inc.(2) 214,725
------------
3,611,023
------------
SPECIALTY STORES -- 0.9%
800 Best Buy Co., Inc.(2) 50,000
1,011 Carrefour SA ORD 176,258
1,800 CVS Corp. 71,438
1,100 Douglas Holding AG ORD 47,279
1,500 Fred's, Inc. 19,594
See Notes to Financial Statements www.americancentury.com 13
Strategic Conservative--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
10,400 Hennes & Mauritz AB Cl B ORD $ 330,089
6,900 Home Depot, Inc. 545,531
600 Ryohin Keikaku Co. Limited ORD 141,637
3,500 Sunglass Hut International, Inc.(2) 42,766
2,600 Tuesday Morning Corp.(2) 65,162
1,500 Zale Corp.(2) 75,938
------------
1,565,692
------------
TELEPHONE -- 3.1%
5,000 AT&T Corp. 279,375
2,300 Bell Atlantic Corp. 145,619
5,500 BellSouth Corp. 254,031
15,887 British Telecommunications
plc ORD 319,401
7,165 Cable & Wireless
Communications plc ORD(2) 80,809
5,442 COLT Telecom Group plc ORD(2) 205,777
1,779 Energis plc ORD(2) 72,441
3,730 Global Crossing Holdings Ltd.(2) 162,372
3,500 Global TeleSystems Group, Inc.(2) 111,781
11,200 GTE Corp. 817,600
6 Japan Telecom Co. Ltd. ORD 235,571
1,200 KDD Corp. ORD 166,078
1,280 KPNQwest N.V.(2) 47,921
200 MCI WorldCom, Inc.(2) 16,538
12 Nippon Telegraph &
Telephone ORD 215,548
2,400 NTL Inc.(2) 218,850
5,500 SBC Communications Inc. 285,656
6,000 Sprint Corp. 416,250
13,296 Thus plc ORD(2) 83,475
2,000 Tele Danmark A/S ORD 128,917
16,900 Telecom Italia SpA ORD 186,319
15,404 Telefonica S.A. ORD(2) 321,024
25,745 TeleWest Communications
plc ORD(2) 121,224
3,200 UnitedGlobalCom Cl A(2) 333,300
1,788 United Pan-Europe
Communications NV ORD(2) 175,681
------------
5,401,558
------------
TOBACCO -- 0.3%
19,100 UST Inc. 508,538
------------
TRUCKING, SHIPPING & AIR FREIGHT -- 0.1%
1,600 Eagle USA Airfreight, Inc.(2) 53,900
2,400 Forward Air Corp.(2) 75,150
300 United Parcel Service, Inc. Cl B 19,819
------------
148,869
------------
WIRELESS TELECOMMUNICATIONS -- 1.9%
2,100 ALLTEL Corp. 181,650
34,465 Cable & Wireless Optus
Limited ORD(2) 89,935
7,300 Europolitan Holdings AB ORD 91,821
3,500 Mannesmann AG ORD 737,169
1,600 Nextel Communications, Inc.(2) 158,600
Shares/Principal Amount Value
--------------------------------------------------------------------------------
15 NTT Mobile Communications
Network, Inc. ORD $ 527,091
5,300 Orange plc ORD(2) 160,445
2,000 QUALCOMM Inc.(2) 724,562
7,813 Sonera Group Oyj ORD 322,894
700 Sprint PCS(2) 64,225
2,000 Vodafone AirTouch PLC ADR 94,375
27,825 Vodafone AirTouch PLC ORD 131,240
1,300 VoiceStream Wireless Corp.(2) 119,966
------------
3,403,973
------------
TOTAL COMMON STOCKS 81,836,387
------------
(Cost $63,339,626)
U.S. TREASURY SECURITIES -- 8.7%
$2,750,000 U.S. Treasury Notes, 5.50%,
3/31/00 2,750,444
4,050,000 U.S. Treasury Notes, 6.625%,
7/31/01 4,092,954
1,575,000 U.S. Treasury Notes, 5.75%,
8/15/03 1,556,792
250,000 U.S. Treasury Notes, 7.50%,
2/15/05 264,127
1,400,000 U.S. Treasury Notes, 6.875%,
5/15/06 1,445,845
950,000 U.S. Treasury Notes, 6.625%,
5/15/07 969,238
500,000 U.S. Treasury Notes, 6.00%,
8/15/09 493,806
1,350,000 U.S. Treasury Bonds, 7.875%,
2/15/21 1,544,780
100,000 U.S. Treasury Bonds, 6.125%,
11/15/27 95,315
400,000 U.S. Treasury Bonds, 5.25%,
11/15/28 337,867
1,250,000 U.S. Treasury Bonds, 5.25%,
2/15/29 1,060,940
600,000 U.S. Treasury Bonds, 6.125%,
8/15/29 588,273
------------
TOTAL U.S. TREASURY SECURITIES 15,200,381
------------
(Cost $15,474,852)
U.S. GOVERNMENT AGENCY SECURITIES -- 5.4%
2,200,000 FHLB, 5.05%, 3/1/00 2,193,676
1,350,000 FHLMC, 7.93%, 1/20/05 1,426,313
500,000 FNMA, 5.25%, 1/15/03 483,509
1,500,000 FNMA, 7.69%, 9/13/06 1,500,225
2,500,000 FNMA MTN, 6.23%, 7/21/08 2,336,589
1,500,000 SLMA MTN, VRN, 5.96%, 12/7/99,
resets weekly off
the 3-month T-Bill rate plus 0.60%
with no caps 1,498,539
------------
TOTAL U.S. GOVERNMENT
AGENCY SECURITIES 9,438,851
------------
(Cost $9,633,612)
14 1-800-345-2021 See Notes to Financial Statements
Strategic Conservative--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
SOVEREIGN GOVERNMENTS & AGENCIES -- 4.1%
EURO 2,050,134 Deutschland Republic,
6.00%, 9/15/03 $ 2,162,919
EURO 1,500,000 Deutschland Republic,
Series 98, 4.125%,
7/4/08 1,401,881
CAD 280,000 Government of Canada,
5.00%, 3/15/00 189,963
JPY 190,000,000 Japan Global, Series 184,
2.90%, 12/20/05 2,018,237
DKK 1,900,000 Kingdom of Denmark,
8.00%, 3/15/06 292,773
USD 350,000 Province of British Columbia,
5.375%, 10/29/08 314,038
GBP 425,000 U.K. Treasury Bonds, 9.00%,
10/13/08 833,735
------------
TOTAL SOVEREIGN GOVERNMENTS
& AGENCIES 7,213,546
------------
(Cost $7,740,732)
MORTGAGE-BACKED SECURITIES(3) -- 11.7%
$ 418,797 FHLMC Pool #E68523, 6.50%,
12/1/12 410,394
1,157,694 FHLMC Pool #E00724, 7.00%,
6/1/14 1,153,914
31,199 FNMA Pool #343829, 6.50%,
4/1/11 30,648
545,448 FNMA Pool #341477, 6.50%,
5/1/11 535,817
178,110 FNMA Pool #346400, 6.50%,
5/1/11 174,965
318,575 FNMA Pool #346779, 6.50%,
5/1/11 312,950
161,154 FNMA Pool #369034, 6.50%,
2/1/12 157,896
257,135 FNMA Pool #377181, 6.50%,
4/1/12 251,936
563,349 FNMA Pool #378039, 6.50%,
5/1/12 551,960
61,249 FNMA Pool #250576, 7.00%,
6/1/26 59,942
443,898 FNMA Pool #373510, 7.50%,
3/1/27 443,000
2,140,685 FNMA Pool #412562, 6.50%,
1/1/28 2,047,205
498,418 FNMA Pool #503915, 7.00%,
7/1/29 487,290
995,461 FNMA Pool #504748, 7.00%,
7/1/29 973,688
700,000 FNMA REMIC, Series 1997-58,
Class PB PAC, 6.50%,
6/18/24 675,000
262,745 GNMA Pool #351417, 7.00%,
1/15/24 257,488
Principal Amount Value
--------------------------------------------------------------------------------
$ 89,994 GNMA Pool #361446, 8.00%,
7/15/24 $ 91,667
120,944 GNMA Pool #377238, 8.50%,
7/20/24 124,945
151,744 GNMA Pool #355903, 8.00%,
9/15/24 154,565
391,231 GNMA Pool #404303, 8.25%,
10/15/24 403,734
30,331 GNMA Pool #392995, 8.75%,
3/15/25 31,884
96,428 GNMA Pool #001991, 9.00%,
4/20/25 101,142
249,002 GNMA Pool #009297, 8.25%,
7/20/25 254,686
424,942 GNMA Pool #412177, 7.00%,
9/15/25 415,819
345,356 GNMA Pool #416856, 7.50%,
10/15/25 345,086
187,745 GNMA Pool #425081, 7.50%,
2/15/26 187,530
19,524 GNMA Pool #417549, 6.00%,
4/15/26 18,113
135,275 GNMA Pool #372335, 7.50%,
4/15/26 135,121
176,099 GNMA Pool #422006, 7.50%,
5/15/26 175,898
122,836 GNMA Pool #402680, 8.00%,
5/15/26 125,017
212,866 GNMA Pool #417068, 8.00%,
5/15/26 216,646
42,665 GNMA Pool #402682, 7.50%,
6/15/26 42,616
594,691 GNMA Pool #431942, 8.25%,
7/15/26 613,294
94,885 GNMA Pool #002273, 9.00%,
8/20/26 99,503
601,599 GNMA Pool #456569, 7.50%,
11/15/27 600,726
1,185,865 GNMA Pool #457351, 7.00%,
12/15/27 1,158,967
539,505 GNMA Pool #404525, 6.50%,
2/15/28 513,261
497,909 GNMA Pool #436196, 6.50%,
2/15/28 473,689
49,809 GNMA Pool #463081, 6.50%,
2/15/28 47,387
397,235 GNMA Pool #256771, 6.50%,
3/15/28 377,912
370,974 GNMA Pool #461658, 6.50%,
3/15/28 352,929
373,780 GNMA Pool #462615, 6.50%,
3/15/28 355,598
3,314,421 GNMA Pool #466804, 6.50%,
4/15/28 3,153,195
46,973 GNMA Pool #474216, 6.50%,
4/15/28 44,688
458,651 GNMA Pool #433786, 6.00%,
5/15/28 423,631
See Notes to Financial Statements www.americancentury.com 15
Strategic Conservative--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
$ 418,917 GNMA Pool #481773, 6.00%,
7/15/28 $ 386,931
475,364 GNMA Pool #473140, 6.00%,
10/15/28 439,068
------------
TOTAL MORTGAGE-BACKED SECURITIES 20,389,341
------------
(Cost $20,868,111)
ASSET-BACKED SECURITIES(3) -- 2.8%
400,000 Comed Transitional Funding Trust,
Series 1998-1, Class A6 SEQ,
5.63%, 6/25/09 374,742
1,200,000 GMAC Commercial Mortgage
Securities Inc., Series 1999 C1,
Class A2 SEQ, 6.18%,
5/15/33 1,109,190
346,291 Money Store (The) Home Equity
Trust, Series 1995 C,
Class A9 SEQ, 6.375%,
9/15/11 345,462
500,000 Money Store (The) Home Equity
Trust, Series 1997 C,
Class AF6 SEQ, 6.67%,
2/15/25 495,878
919,003 Morgan Stanley Capital I,
Series 1998 WF1,
Class A1 SEQ, 6.25%,
7/15/07 897,852
657,268 Nationslink Funding Corp.,
Series 1998-2, Class A1 SEQ,
6.00%, 11/20/07 629,225
1,000,000 Nationslink Funding Corp.,
Series 1999-1, Class A2 SEQ,
6.32%, 11/20/08 946,185
122,478 Textron Financial Corp.
Receivables Trust,
Series 1997 A, Class A, 6.05%,
3/16/09 (Acquired 9/18/97,
Cost $122,316)(4) 122,153
------------
TOTAL ASSET-BACKED SECURITIES 4,920,687
------------
(Cost $5,178,937)
CORPORATE BONDS -- 13.2%
BANKS -- 3.0%
650,000 Banco Santander Central
Hispano Issuance, Ltd., 7.625%,
11/3/09 655,550
1,000,000 Bank of America N.A., 6.125%,
7/15/04 967,795
1,000,000 Bank of America N.A., VRN,
5.83%, 12/1/99, resets daily
off the Fed Funds rate plus
0.22% with no caps 999,598
550,000 Citigroup Inc., 7.125%, 5/15/06 545,087
500,000 First Bank System Inc., 7.625%,
5/1/05 503,127
Principal Amount Value
--------------------------------------------------------------------------------
$ 350,000 Fleet Boston Financial Corp.,
5.75%, 1/15/09 $ 312,377
1,200,000 Wells Fargo & Co. MTN, Series J,
VRN, 5.41%, 12/10/99, resets
quarterly off the 3-month
LIBOR minus 0.11% with
no caps 1,199,367
------------
5,182,901
------------
CHEMICALS -- 0.4%
650,000 du Pont (E.I.) de Nemours & Co.,
6.875%, 10/15/09 641,029
------------
DEFENSE/AEROSPACE(1)
GBP 1,354 British Aerospace PLC, 7.45%,
11/30/03 2,125
------------
DEPARTMENT STORES -- 0.2%
$ 300,000 Saks Inc., 8.25%, 11/15/08 289,007
------------
ELECTRICAL EQUIPMENT -- 0.1%
300,000 Hutchison Whampoa Financial,
Series B, 7.45%, 8/1/17
(Acquired 11/19/99, Cost
$274,113)(4) 272,932
------------
ELECTRICAL UTILITIES -- 0.5%
600,000 Southern Investments UK, 6.80%,
12/1/06 569,968
250,000 Virginia Electric & Power, 8.00%,
3/1/04 256,702
------------
826,670
------------
ENERGY RESERVES & PRODUCTION -- 0.4%
700,000 EOG Resources Inc., 6.70%,
11/15/06 671,878
------------
FINANCIAL SERVICES -- 1.9%
600,000 Ford Motor Credit Co., 7.375%,
10/28/09 603,911
1,500,000 Abbey National Treasury Services
PLC MTN, Series
1A, VRN, 6.15%, 1/25/00,
resets quarterly off the
3-month LIBOR minus 0.07% with
no caps 1,499,162
1,200,000 Goldman Sachs Group Inc. MTN,
Series A, VRN, 5.54%,
12/23/99, resets quarterly off
the 3-month LIBOR plus
0.03% with no caps 1,200,222
------------
3,303,295
------------
FOOD & BEVERAGE -- 0.8%
800,000 Pepsi Bottling Group Inc.,
5.625%, 2/17/09 (Acquired
2/3/99, Cost $796,536)(4) 717,685
800,000 Pepsi Bottling Group Inc.,
Series B, 7.00%, 3/1/29
(Acquired 3/3/99, Cost
$794,560)(4) 736,853
------------
1,454,538
------------
16 1-800-345-2021 See Notes to Financial Statements
Strategic Conservative--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
FOREST PRODUCTS & PAPER -- 0.7%
$ 400,000 Abitibi-Consolidated Inc., 8.50%,
8/1/29 $ 391,461
850,000 Fort James Corp., 6.625%,
9/15/04 820,435
------------
1,211,896
------------
GOLD -- 0.2%
300,000 Barrick Gold Corp., 7.50%,
5/1/07 300,813
------------
INDUSTRIAL PARTS -- 0.3%
650,000 Petroleum Geo-Services ASA,
7.125%, 3/30/28 580,564
------------
LIFE & HEALTH INSURANCE -- 0.4%
800,000 Conseco Inc., 6.40%, 6/15/01 779,942
------------
MEDIA -- 0.6%
300,000 British Sky Broadcasting, 6.875%,
2/23/09 262,948
800,000 TCI Communications, Inc., 8.75%,
8/1/15 887,175
------------
1,150,123
------------
MINING & METALS -- 0.1%
100,000 Alcan Aluminium Ltd., 5.875%,
4/1/00 99,966
------------
MOTOR VEHICLES & PARTS -- 0.8%
1,000,000 Ford Motor Co., 6.375%, 2/1/29 856,994
500,000 Toyota Motor Credit Corp.,
5.625%, 11/13/03 478,120
------------
1,335,114
------------
OIL REFINING -- 1.0%
500,000 Enron Corp., 6.75%, 7/1/05 483,559
600,000 Enron Corp., 6.625%, 11/15/05 577,076
800,000 USX Corp., 6.65%, 2/1/06 761,541
------------
1,822,176
------------
SECURITIES & ASSET MANAGEMENT -- 0.2%
350,000 Lehman Brothers Holdings Inc.,
6.625%, 4/1/04 340,816
------------
SPECIALTY STORES(1)
100,000 Rite Aid Corp., 6.00%, 12/15/05
(Acquired 6/16/99, Cost
$91,801)(4) 61,000
------------
TELEPHONE -- 1.6%
300,000 Citizens Utilities Co., 7.60%,
6/1/06 304,433
800,000 GTE North Inc., Series H, 5.65%,
11/15/08 720,651
600,000 MCI WorldCom, Inc., 7.55%,
4/1/04 612,948
500,000 U S West Capital Funding Inc.,
6.125%, 7/15/02 489,075
Principal Amount Value
--------------------------------------------------------------------------------
$ 650,000 U S West Communications,
7.20%, 11/1/04 (Acquired
10/26/99, Cost $648,765)(4) $ 651,798
------------
2,778,905
------------
TOTAL CORPORATE BONDS 23,105,690
------------
(Cost $23,891,676)
COMMERCIAL PAPER(5) -- 5.1%
CREDIT CARD & TRADE RECEIVABLES -- 1.2%
1,100,000 Dakota Certificates (Citibank),
5.86%, 1/10/00 (Acquired
9/8/99, Cost $1,077,797)(4) 1,092,671
1,000,000 WCP Funding Inc., 6.00%,
1/28/00 (Acquired 11/30/99,
Cost $990,167)(4) 990,167
------------
2,082,838
------------
ENERGY -- 0.7%
1,250,000 Motiva Enterprises LLC, 5.76%,
2/1/00 (Acquired 9/8/99,
Cost $1,220,800)(4) 1,237,206
------------
FINANCIAL SERVICES -- 2.6%
1,300,000 Falcon Asset Securities Corp.,
5.90%, 1/18/00 (Acquired
9/23/99, Cost $1,275,073)(4) 1,289,648
900,000 Receivables Capital Corp., 5.93%,
2/18/00 (Acquired 11/5/99,
Cost $884,434)(4) 888,326
1,300,000 Transamerica Asset Funding Corp.,
5.82%, 2/10/00 (Acquired
8/17/99, Cost $1,262,801)(4) 1,284,810
1,100,000 Windmill Funding Corp., 5.91%,
1/13/00 (Acquired 9/17/99,
Cost $1,079,233)(4) 1,092,135
------------
4,554,919
------------
INFORMATION SERVICES -- 0.6%
980,000 Yale University, 5.76%, 2/14/00 967,919
------------
TOTAL COMMERCIAL PAPER 8,842,882
------------
(Cost $8,844,387)
CERTIFICATES OF DEPOSIT -- 2.2%
1,300,000 U.S. Bank, NA Minnesota, 5.41%,
12/14/99 1,299,886
1,000,000 Union Bank of California N.A.,
5.89%, 1/25/00 999,887
1,600,000 Westdeutsche Landesbank,
6.03%, 1/5/00 1,600,155
------------
TOTAL CERTIFICATES OF DEPOSIT 3,899,928
------------
(Cost $3,900,000)
TOTAL INVESTMENT SECURITIES -- 100.0% $174,847,693
============
(Cost $158,871,933)
See Notes to Financial Statements www.americancentury.com 17
Strategic Conservative--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Contracts Settlement Unrealized
to Sell Date Value Gain (Loss)
-------------------------------------------------------------------------------
501,304 EURO 12/30/99 $ 506,424 $981
130,647,600 JPY 12/30/99 1,288,980 (23,873)
----------------------------------
$1,795,404 $(22,892)
==================================
(Value on Settlement Date $1,772,512)
Forward foreign currency exchange contracts are designed to protect the fund's
foreign investments against declines in foreign currencies (also known as
hedging). The contracts are called "forward" because they allow the
fund to exchange a foreign currency for U.S. dollars on a specific date in the
future--and at a prearranged exchange rate.
NOTES TO SCHEDULE OF INVESTMENTS
ADR = American Depositary Receipt
CAD = Canadian Dollar
DKK = Danish Krone
FHLB = Federal Home Loan Bank
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
GBP = British Pound
GNMA = Government National Mortgage Association
JPY = Japanese Yen
LIBOR = London Interbank Offered Rate
MTN = Medium Term Note
ORD = Foreign Ordinary Share
SLMA = Student Loan Marketing Association
USD = U.S. Dollar
VRN = Variable Rate Note. Interest reset date is indicated and used in
calculating the weighted average portfolio maturity. Rate shown is effective
November 30, 1999.
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.
(1) Industry is less than 0.05% of total investment securities.
(2) Non-income producing.
(3) Final maturity indicated. Expected remaining maturity used for purposes of
calculating the weighted average portfolio maturity.
(4) 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 November 30,
1999, was $10,437,384 which represented 5.9% of net assets.
(5) The rates for commercial paper are the yield to maturity at purchase.
18 1-800-345-2021 See Notes to Financial Statements
Strategic Moderate--Performance
--------------------------------------------------------------------------------
TOTAL RETURNS AS OF NOVEMBER 30, 1999
INVESTOR CLASS (INCEPTION 2/15/96) ADVISOR CLASS (INCEPTION 10/2/96)
LEHMAN THREE-MONTH LEHMAN THREE-MONTH
STRATEGIC AGGREGATE U.S. STRATEGIC AGGREGATE U.S.
MODERATE S&P 500 BOND INDEX TREASURY BILL MODERATE S&P 500 BOND INDEX TREASURY BILL
========================================================================================================================
6 MONTHS(1) 10.21% 7.38% 0.72% 2.39% 10.25% 7.38% 0.72% 2.39%
1 YEAR 16.97% 20.92% -0.04% 4.67% 16.66% 20.92% -0.04% 4.67%
========================================================================================================================
AVERAGE ANNUAL RETURNS
3 YEARS 13.39% 24.33% 5.57% 4.93% 13.10% 24.33% 5.57% 4.93%
LIFE OF FUND 13.26% 24.19% 6.00%(2) 4.97%(2) 13.61% 26.52% 6.57%(3) 4.93%(3)
(1) Returns for periods less than one year are not annualized.
(2) Since 2/29/96, the date nearest the class's inception for which data are
available.
(3) Since 9/30/96, the date nearest the class's inception for which data are
available.
See pages 66-68 for more information about share classes, returns, and the
comparative indices.
[mountain graph - data below]
GROWTH OF $10,000 OVER LIFE OF FUND
Value on 11/30/99
S&P 500 $23,102
Strategic Moderate $16,159
Lehman Aggregate $12,441
Three-Month T-Bill $11,992
Strategic Lehman Three-Month
Moderate S&P 500 Aggregate T-Bill
DATE VALUE VALUE VALUE VALUE
2/29/1996 $10,000 $10,000 $10,000 $10,000
3/31/1996 $10,071 $10,096 $9,930 $10,041
4/30/1996 $10,314 $10,244 $9,874 $10,082
5/31/1996 $10,394 $10,509 $9,855 $10,125
6/30/1996 $10,411 $10,549 $9,987 $10,167
7/31/1996 $10,085 $10,082 $10,014 $10,211
8/31/1996 $10,309 $10,295 $9,997 $10,254
9/30/1996 $10,650 $10,875 $10,171 $10,297
10/31/1996 $10,773 $11,175 $10,396 $10,339
11/30/1996 $11,080 $12,020 $10,574 $10,382
12/31/1996 $11,019 $11,782 $10,476 $10,425
1/31/1997 $11,204 $12,518 $10,508 $10,469
2/28/1997 $11,121 $12,616 $10,535 $10,513
3/31/1997 $10,824 $12,097 $10,418 $10,558
4/30/1997 $10,989 $12,819 $10,574 $10,603
5/31/1997 $11,529 $13,600 $10,674 $10,648
6/30/1997 $11,851 $14,211 $10,801 $10,691
7/31/1997 $12,414 $15,341 $11,093 $10,736
8/31/1997 $12,143 $14,481 $10,999 $10,783
9/30/1997 $12,711 $15,275 $11,160 $10,827
10/31/1997 $12,397 $14,765 $11,322 $10,871
11/30/1997 $12,523 $15,448 $11,374 $10,919
12/31/1997 $12,699 $15,714 $11,489 $10,966
1/31/1998 $12,742 $15,889 $11,636 $11,012
2/28/1998 $13,353 $17,034 $11,627 $11,058
3/31/1998 $13,819 $17,906 $11,666 $11,105
4/30/1998 $13,928 $18,087 $11,727 $11,150
5/31/1998 $13,862 $17,776 $11,839 $11,197
6/30/1998 $14,084 $18,498 $11,939 $11,243
7/31/1998 $13,974 $18,300 $11,964 $11,289
8/31/1998 $12,717 $15,657 $12,159 $11,335
9/30/1998 $13,015 $16,656 $12,444 $11,378
10/31/1998 $13,393 $18,012 $12,378 $11,416
11/30/1998 $13,815 $19,105 $12,448 $11,458
12/31/1998 $14,318 $20,206 $12,486 $11,501
1/31/1999 $14,457 $21,051 $12,574 $11,542
2/28/1999 $13,972 $20,396 $12,354 $11,585
3/31/1999 $14,315 $21,212 $12,422 $11,628
4/30/1999 $14,826 $22,033 $12,462 $11,669
5/31/1999 $14,662 $21,513 $12,352 $11,713
6/30/1999 $15,138 $22,709 $12,313 $11,758
7/31/1999 $15,068 $21,998 $12,260 $11,802
8/31/1999 $15,021 $21,890 $12,254 $11,848
9/30/1999 $14,916 $21,290 $12,396 $11,895
10/31/1999 $15,408 $22,638 $12,442 $11,942
11/30/1999 $16,159 $23,102 $12,441 $11,992
$10,000 investment made 2/29/96(2)
The graph at left shows the growth of a $10,000 investment over the life of the
fund, while the graph below shows the fund's year-by-year performance. The
S&P 500, Lehman Aggregate Bond, and Three-Month U.S. Treasury Bill (T-Bill)
indices are provided for comparison in each graph. Strategic Moderate's total
returns include operating expenses (such as transaction costs and management
fees) that reduce returns, while the total returns of the indices do not. The
graphs are based on Investor Class shares only; performance for other classes
will vary due to differences in fee structures (see the Total Returns table
above). Past performance does not guarantee future results. Investment return
and principal value will fluctuate, and redemption value may be more or less
than original cost.
[bar graph - data below]
ONE-YEAR RETURNS OVER LIFE OF FUND (PERIODS ENDING NOVEMBER 30)
Strategic Lehman Three-Month
Moderate S&P 500 Aggregate T-Bill
DATE RETURN RETURN RETURN RETURN
11/30/96* 10.80% 20.18% 5.75% 3.82%
11/30/97 13.02% 28.56% 7.55% 5.17%
11/30/98 10.32% 23.66% 9.45% 4.56%
11/30/99 16.97% 20.92% -0.04% 4.67%
* From 2/29/96 (the date nearest the class's inception for which index data are
available) to 11/30/96.
www.americancentury.com 19
Strategic Moderate--Q&A
--------------------------------------------------------------------------------
An interview with Jeff Tyler and Brian Howell, portfolio managers on the
American Century Strategic Asset Allocation funds management team.
HOW DID STRATEGIC MODERATE PERFORM DURING THE YEAR ENDED NOVEMBER 30, 1999?
The fund's performance reflected the healthy performance of stocks and weak
returns of bonds. For the fiscal year, Strategic Moderate posted a total return
of 16.97%.* (See the previous page for other fund performance information.)
HOW DID THE FUND'S ASSET MIX CHANGE DURING THE FISCAL YEAR?
We tend to keep Strategic Moderate's asset mix close to its neutral
position of 60% stocks, 30% bonds, and 10% cash. From there, we try to make some
modest adjustments to add value.
The main change we made over the last year was to reduce the portfolio's
cash position while expanding our stock holdings.
WHY DID YOU OVERWEIGHT STOCKS?
We felt that economic conditions would be positive for stocks. The U.S.
economy has continued to roll along, and we've seen a remarkable economic
rebound in other parts of the world as well.
Momentum also favored stocks--we expected investor demand for equities to
remain healthy in 1999. In fact, if anything it's gotten even stronger in the
past year.
HOW DID YOU POSITION STRATEGIC MODERATE'S STOCK PORTFOLIO?
For much of the fiscal year, we were overweight value stocks, which are
those considered to be undervalued based on their earnings growth. This was a
drag on performance because value shares were left in the dust by technology and
other growth stocks.
Over the past year, the S&P 500/BARRA Growth Index returned more than
28%, while the S&P 500/BARRA Value Index returned about 12%. This
growth/value performance gap was even more pronounced among small- and mid-cap
stocks.
WHY HAVEN'T VALUE STOCKS PERFORMED WELL OVER THE PAST COUPLE OF YEARS?
That's a good question. There are a lot of well-managed, profitable
companies whose stock prices look like great bargains, but nobody's buying.
Investors have been more interested in chasing what's hot--big, well-known
companies in 1998, technology companies in 1999.
Some market influences that are traditionally negative for growth
stocks--rising interest rates, the dollar weakening against the Japanese yen, an
ever-larger U.S. trade deficit--have been ignored by investors. As a result,
value stocks are struggling in an environment where they have historically
outperformed.
IF THE FUND WAS OVERWEIGHT VALUE STOCKS, DOES THAT MEAN THE PORTFOLIO WAS
UNDERWEIGHT GROWTH STOCKS?
Not really. Despite the value overweight, we kept a fairly even balance
between growth and value stocks. And the growth portion included a fair amount
of exposure to the technology sector.
For example, four of the fund's ten biggest stock holdings--including the
top three--were technology companies, and three of its five largest industry
holdings were technology-oriented.
[left margin]
"THE MAIN CHANGE WE MADE OVER THE LAST YEAR WAS TO REDUCE THE PORTFOLIO'S
CASH POSITION WHILE EXPANDING OUR STOCK HOLDINGS."
[pie chart - data below]
ASSET ALLOCATION
(AS OF NOVEMBER 30, 1999)
PERCENT OF FUND INVESTMENTS
U.S. Stocks 48%
Foreign Stocks 17%
U.S. Bonds 24%
Foreign Bonds 5%
Money Market
Securities 6%
See page 67 for the fund's neutral asset mix.
Investment terms are defined in the Glossary on pages 68-69.
* All fund returns referenced in this interview are for Investor Class shares.
20 1-800-345-2021
Strategic Moderate--Q&A
--------------------------------------------------------------------------------
(Continued)
WHAT ABOUT STRATEGIC MODERATE'S BOND PORTFOLIO?
We were overweight corporate bonds and underweight Treasurys for most of
the fiscal year. The strong economy favored corporate bonds--companies are more
likely to be able to pay off their debts when business is good. In addition, the
yield difference between corporate and Treasury bonds had grown unusually large,
meaning corporate bond yields looked very attractive compared with Treasury
yields.
However, sentiment in the corporate bond market shifted, with investors
becoming much more risk averse. For a variety of reasons--Y2K, inflation fears,
the health of the economy, a lack of liquidity in the market--bond investors
simply have a much smaller appetite for risk than they've had in the past few
years.
As a result, we emphasized bonds issued by large, well-known companies like
Ford Motor, Pepsi, and Wal-Mart. Bond investors have been more comfortable
holding these big-name companies.
IN STRATEGIC MODERATE'S FOREIGN SECURITIES, YOU BOOSTED YOUR ASIAN HOLDINGS
WHILE REDUCING YOUR EUROPEAN EXPOSURE (SEE THE CHART AT RIGHT). WHY?
It was mainly a shift into Japan. We began to overweight Japanese stocks in
early 1999 because we liked the prospects there. We still saw favorable
opportunities in Europe, but we thought Japan had the highest potential for
extraordinary gains.
Our biggest foreign holdings reflect this shift. Six months ago, our top
five foreign stocks were all in Europe. Now, three of our top five are Japanese
companies (see the table at right).
This move into Japan paid off--although Europe had good equity returns, the
Japanese stock market skyrocketed. In addition, we suffered currency losses on
our European investments, whereas we earned currency gains on our Japanese
holdings.
LOOKING AHEAD, WHAT ARE YOUR PLANS FOR STRATEGIC MODERATE'S ASSET ALLOCATION
STRUCTURE?
We're sticking to the basics. Long term, that means staying true to our
neutral asset mix of 60% stocks, 30% bonds, and 10% cash. As in the past year,
though, we expect to stay underweight in cash and continue to focus on domestic
stocks and corporate bonds.
That said, we may become a little more defensive in the early part of 2000,
cutting back on stocks and adding to our cash position.
WHY THE DEFENSIVE POSTURE?
We expect a bit of a letdown in the stock market in the first part of next
year. At the start of 1999, everyone was worrying about Y2K's effect on the
market. The general expectation was that investors would flee the market at the
end of the year and then jump back in after Y2K was out of the way. In other
words, there would be a "relief" rally in the first quarter of 2000.
[right margin]
FUND'S U.S. STOCKS (AS OF NOVEMBER 30, 1999)
NUMBER OF COMPANIES 356
DIVIDEND YIELD 1.19%
PRICE/EARNINGS RATIO 24.4
% OF FUND'S % OF
U.S. STOCKS FUND
TOP 5 U.S. STOCKS
MICROSOFT CORP. 2.3% 1.1%
JDS UNIPHASE CORP. 2.0% 1.0%
CISCO SYSTEMS INC. 1.7% 0.8%
GENERAL ELECTRIC CO. (U.S.) 1.6% 0.8%
WAL-MART STORES, INC. 1.5% 0.7%
FUND'S FOREIGN STOCKS (AS OF NOVEMBER 30, 1999)
NUMBER OF COMPANIES 253
DIVIDEND YIELD 0.73%
% OF FUND'S % OF
COUNTRY FOREIGN STOCKS FUND
TOP 5 FOREIGN STOCKS
MANNESMANN AG GERMANY 2.9% 0.5%
SOFTBANK CORP. JAPAN 2.3% 0.4%
SONY CORP. JAPAN 2.2% 0.4%
CHINA TELECOM
(HONG KONG) LTD. HONG KONG 1.7% 0.3%
NTT MOBILE
COMMUNICATIONS
NETWORK, INC. JAPAN 1.7% 0.3%
[pie chart - data below]
PERCENT OF FUND'S FOREIGN STOCKS
Europe 64%
Asia/Pacific 34%
Americas
(excluding U.S.) 2%
www.americancentury.com 21
Strategic Moderate--Q&A
--------------------------------------------------------------------------------
(Continued)
But now just about everybody thinks that Y2K will be a non-event, so there
probably won't be a mass exodus at year-end or a big relief rally after the
first of the year. In fact, there's been such a strong surge in the market over
the last couple of months that we think stocks will go through a cooling-off
period in the coming months. This has happened frequently in the past few years
after a sudden and dramatic rally.
WHAT ABOUT THE PORTFOLIO'S BOND HOLDINGS?
We're still finding compelling values in corporate bonds, so we expect to
remain overweight there. The continued strength of the U.S. economy, as well as
the economic rebound elsewhere in the world, bodes well for corporate bonds.
However, we think the domestic economy's healthy growth rate will lead the
Federal Reserve to raise short-term interest rates again in the first quarter of
2000. As a result, we could see bond yields rise a little further in the coming
months.
HOW WILL YOU POSITION THE FUND'S FOREIGN HOLDINGS?
We may bring some capital back home from our investments abroad. We've had
a great deal of success in Europe over the past several years, so we may take
some profits and reinvest the money domestically as we position the fund more
defensively.
We still like prospects in Japan--the economy, though still fragile,
continues to improve, and that should be good for the stock market. We intend to
maintain our overweight in Japanese stocks.
[left margin]
"WE MAY BECOME A LITTLE MORE DEFENSIVE IN THE EARLY PART OF 2000, CUTTING
BACK ON STOCKS AND ADDING TO OUR CASH POSITION."
FUND'S U.S. BONDS (AS OF NOVEMBER 30, 1999)
NUMBER OF SECURITIES 152
WEIGHTED AVERAGE MATURITY 8.1 YRS
AVERAGE DURATION 5.0 YRS
[pie chart - data below]
PERCENT OF FUND'S U.S. BONDS
Corporate 44%
U.S. Govt. Agency 12%
Asset-Backed 5%
U.S. Treasury 19%
Mortgage-Backed 20%
FUND'S FOREIGN BONDS (AS OF NOVEMBER 30, 1999)
NUMBER OF SECURITIES 8
WEIGHTED AVERAGE MATURITY 6.0 YRS
AVERAGE DURATION 5.1 YRS
[pie chart - data below]
PERCENT OF FUND'S FOREIGN BONDS
Europe 65%
Asia/Pacific 30%
Americas
(excluding U.S.) 5%
22 1-800-345-2021
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
This schedule lists all investments owned by the fund, as well as each
security's market value, as of the last day of the reporting period. The
securities are grouped by asset class (such as common stocks, corporate bonds,
temporary cash investments, as applicable), and some asset classes are further
broken down by industry or country.
NOTE: For securities denominated in foreign currencies, the market value is
translated into U.S. dollars based on exchange rates as of the last day of the
reporting period.
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 64.5%
AIRLINES(1)
1,500 Ryanair Holdings plc ADR(2) $ 73,969
------------
ALCOHOL(1)
2,900 Coors (Adolph) Co. Cl B 144,275
------------
APPAREL & TEXTILES -- 0.2%
4,100 Gucci Group N.V. New
York Shares 341,325
3,100 Jones Apparel Group, Inc.(2) 82,731
18,000 VF Corp. 537,750
------------
961,806
------------
BANKS -- 4.9%
26,739 Anglo Irish Bank Corp. plc ORD 63,433
6,100 Argentaria SA ORD 139,543
33,100 Banca Intesa S.p.A. ORD 141,432
588 Banca Popolare Commercio e
Industria New 99 ORD(2) 13,635
3,287 Banca Popolare Commercio e
Industria ORD 80,824
4,269 Bipop-Carire SPA ORD 215,104
19 Bank Sarasin & Cie Cl B ORD 33,809
36,000 Bank of America Corp. 2,106,030
7,000 Barclays PLC ORD 202,403
19,400 Chase Manhattan Corp. 1,498,650
12,500 Citigroup Inc. 673,438
17,000 Dai-Ichi Kangyo Bank Ltd. ORD 196,398
11,630 DBS Group Holdings Ltd. ORD 150,823
2,500 DePfa Deutsche Pfandbriefbank
AG ORD 188,953
3,000 Fifth Third Bancorp 209,906
27,600 First Union Corp. 1,067,775
47,100 First Virginia Banks, Inc. 2,137,162
6,700 Fleet Boston Financial Corp. 253,344
800 HSBC Holdings plc ORD 10,610
23,200 Keppel Bank ORD 47,200
82,900 KeyCorp 2,238,300
19,800 Lloyds TSB Group plc ORD 253,835
18,100 Mellon Bank Corp. 659,519
7,300 Old Kent Financial Corp. 296,106
9,000 PNC Bank Corp. 501,750
5,600 Republic New York Corp. 395,850
1,400 Societe Generale Cl A ORD 301,922
24,000 Sumitomo Bank, Ltd. (The) ORD 368,669
73,600 Summit Bancorp. 2,401,200
Shares Value
--------------------------------------------------------------------------------
13,300 UnionBanCal Corp. $ 586,031
17,846 United Oversees Bank Ltd. ORD 159,244
11,800 Wachovia Corp. 913,762
10,200 Wells Fargo & Co. 474,300
6,000 Zions Bancorporation 387,188
------------
19,368,148
------------
CHEMICALS -- 1.3%
8,400 Air Products and Chemicals, Inc. 271,950
8,200 Dow Chemical Co. 960,425
8,100 du Pont (E.I.) de Nemours & Co. 481,444
100 Fuji Seal, Inc. ORD 6,086
11,151 Illinois Tool Works Inc. 722,027
34,700 IMC Global Inc. 559,538
10,000 Lubrizol Corp. 273,750
17,600 Minnesota Mining &
Manufacturing Co. 1,681,900
700 Symyx Technologies Inc.(2) 24,106
------------
4,981,226
------------
CLOTHING STORES -- 0.1%
6,000 AnnTaylor Stores Corp.(2) 259,125
6,400 Talbots, Inc. 310,400
------------
569,525
------------
COMPUTER HARDWARE &
BUSINESS MACHINES -- 3.0%
28,900 Adaptec, Inc.(2) 1,557,891
36,700 Cisco Systems Inc.(2) 3,272,044
12,100 Compaq Computer Corp. 295,694
15,800 Electronics for Imaging, Inc.(2) 702,606
12,000 EMC Corp. (Mass.)(2) 1,002,750
3,100 Emulex Corp.(2) 503,362
1,200 Foundry Networks, Inc.(2) 282,562
14,200 Hewlett-Packard Co. 1,347,225
2,600 Immersion Corp.(2) 69,469
13,400 International Business Machines
Corp. 1,381,038
400 Logitech International S.A. ORD(2) 93,310
7,000 Psion plc ORD 286,719
1,600 SanDisk Corp.(2) 105,650
7,100 Tandberg ASA ORD(2) 158,415
21,100 Xerox Corp. 571,019
------------
11,629,754
------------
COMPUTER SOFTWARE -- 3.5%
6,800 Active Software, Inc.(2) 428,825
15,500 Amdocs Ltd.(2) 545,406
30,300 Autodesk, Inc. 891,009
3,783 Baltimore Technologies plc ORD(2) 176,617
See Notes to Financial Statements www.americancentury.com 23
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
2,000 BMC Software, Inc.(2) $ 145,688
700 Business Objects S.A. ADR(2) 61,600
200 CacheFlow Inc.(2) 30,238
1,100 Check Point Software
Technologies Ltd.(2) 155,856
5,700 Computer Associates
International, Inc. 370,500
31,920 Computershare Limited ORD 145,073
6,150 Comverse Technology, Inc.(2) 743,381
2,000 Cysive, Inc.(2) 100,500
3,815 Data Fellows Oyj ORD(2) 93,615
4,100 Eidos plc ORD(2) 363,380
2,973 Exact Holding NV ORD(2) 143,810
755 Fantastic Corp. ORD(2) 91,302
158 Heyde AG Beratung Software
ORD(2) 13,056
1,756 Intershop Communications
AG ORD(2) 350,329
9,632 Ixchange Technology Holdings
Limited ORD(2) 25,725
700 Liberate Technologies, Inc.(2) 89,425
1,507 London Bridge Software Holdings
plc ORD 107,251
48,000 Microsoft Corp.(2) 4,369,500
6,700 National Instruments Corp.(2) 201,209
1,900 NDS Group plc ADR(2) 56,881
5,400 ONYX Software Corp.(2) 173,812
792 OpenTV Corp.(2) 61,207
11,600 Oracle Corp.(2) 786,262
19,700 Parametric Technology Corp.(2) 445,712
4,700 Proxicom, Inc.(2) 322,831
7,700 Radiant Systems, Inc.(2) 190,816
5,200 Rational Software Corp.(2) 265,525
2,200 Sage Group plc (The) ORD 152,213
3,200 Sapient Corp.(2) 247,900
1,752 Software AG ORD(2) 105,846
7,600 Sybase, Inc.(2) 122,788
17,500 Unisys Corp.(2) 503,125
10,700 USWeb Corp.(2) 443,047
------------
13,521,260
------------
CONSTRUCTION & REAL PROPERTY -- 0.4%
3,400 Centex Construction Products Inc. 118,788
6,400 Centex Corp. 152,000
6,500 Elcor Corp. 210,438
4,000 Fuso Lexel Inc. ORD 63,997
164 Holderbank Financiere Glarus
AG Cl B ORD 205,516
8,300 Insituform Technologies, Inc.
Cl A(2) 208,019
1,600 Lafarge SA ORD 151,001
6,000 Pinnacle Holdings Inc.(2) 171,188
5,500 Quanta Services, Inc.(2) 154,000
------------
1,434,947
------------
Shares Value
--------------------------------------------------------------------------------
CONSUMER DURABLES -- 0.1%
10,200 Assa Abloy AB Cl B ORD $ 119,305
4,100 Dorel Industries Inc. Cl B ORD(2) 65,366
------------
184,671
------------
DEFENSE/AEROSPACE -- 0.5%
16,500 Boeing Co. 673,406
11,834 British Aerospace PLC ORD 67,821
5,400 Cobham PLC ORD 62,930
3,900 General Dynamics Corp. 201,094
34,300 Lockheed Martin Corp. 681,712
13,300 Raytheon Co. Cl B 408,144
------------
2,095,107
------------
DEPARTMENT STORES -- 1.4%
13,500 Ames Department Stores, Inc.(2) 358,172
1,500 Fast Retailing Co. Ltd. ORD 559,482
1,800 Galeries Lafayette ORD 274,451
3,059 Matalan PLC ORD 68,048
17,400 May Department Stores Co. (The) 585,075
1,000 Nitori Co. ORD 40,734
2,100 Pinault-Printemps-Redoute
SA ORD 438,069
1,900 Shinsegae Department Store Co.
ORD 117,188
9,700 ShopKo Stores, Inc.(2) 220,069
49,800 Wal-Mart Stores, Inc. 2,869,725
------------
5,531,013
------------
DRUGS -- 3.4%
20,800 Amgen Inc.(2) 947,050
4,500 Andrx Corp.(2) 231,609
6,700 AstraZeneca Group plc ORD 299,477
3,000 Biogen, Inc.(2) 219,094
1,700 Biovail Corp. International(2) 118,256
21,700 Bristol-Myers Squibb Co. 1,585,456
8,200 ChiRex Inc.(2) 284,694
7,200 Chiron Corp.(2) 236,025
3,100 Forest Laboratories, Inc.(2) 158,681
5,100 Genzyme Corp.(2) 183,441
2,800 IGEN International, Inc.(2) 71,750
20,100 IVAX Corp.(2) 408,281
6,520 MedImmune, Inc.(2) 783,419
2,700 Merck & Co., Inc. 211,950
266 Novartis AG ORD 414,621
1,758 Novo Nordisk A/S Cl B ORD 229,731
22,200 Pfizer, Inc. 803,362
12,300 Pharmacia & Upjohn Inc. 672,656
12,500 Protein Design Labs, Inc.(2) 500,781
1,500 QIAGEN N.V.(2) 100,219
8,400 QLT PhotoTherapeutics
Inc. ORD(2) 376,119
33,700 Schering-Plough Corp. 1,722,912
1,500 SciQuest.com, Inc.(2) 49,453
18,000 Shire Pharmaceuticals Group
PLC ORD(2) 192,227
24 1-800-345-2021 See Notes to Financial Statements
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
5,000 Takeda Chemical Industries,
Ltd. ORD $ 295,446
23,400 Warner-Lambert Co. 2,098,688
------------
13,195,398
------------
ELECTRICAL EQUIPMENT -- 6.3%
608 ADVA AG Optical Networking
ORD(2) 82,716
3,700 Advanced Energy Industries, Inc.(2) 124,528
2,782 Alcatel Alsthom Compagnie
Generale ORD 539,685
7,700 ANTEC Corp.(2) 431,200
8,200 C-COR.net Corp.(2) 420,506
9,600 Celestica Inc. New York Shares(2) 674,400
11,000 CIENA Corp.(2) 482,969
11,600 Corning Inc. 1,086,775
9,400 DII Group, Inc.(2) 593,962
4,000 DSP Group, Inc.(2) 277,250
861 Effnet Group AB ORD(2) 27,530
5,900 Ericsson (L.M.) Telephone Co.
ADR 284,491
15,000 Fujitsu Ltd. ORD 532,980
4,900 Harmonic Lightwaves, Inc.(2) 294,919
53,000 Hitachi Ltd. ORD 733,510
16,500 JDS Uniphase Corp.(2) 3,773,859
900 Keyence Corporation ORD 256,184
2,600 KLA-Tencor Corporation(2) 219,944
42 Kudelski SA ORD(2) 193,838
22,500 Lucent Technologies Inc. 1,643,906
27,600 Marconi plc ORD 353,389
2,000 Matsushita Communication
Industrial Co., Ltd. ORD 384,766
10,000 Matsushita Electric Industrial Co.,
Ltd. ORD 253,730
5,600 Motorola, Inc. 639,800
10,000 NEC Corp. ORD 234,099
5,900 Nokia Corp. Cl A ADR 815,306
17,600 Nortel Networks Corp. New
York Shares 1,302,400
8,608 NXT plc ORD(2) 180,829
11,000 Omron Corp. ORD 269,386
2,100 Optical Coating Laboratory, Inc. 413,109
2,500 Orbotech Ltd.(2) 229,375
5,508 Phillips Electronics N.V. New
York Shares 658,206
22,200 Pinnacle Systems, Inc.(2) 731,212
4,900 Powerwave Technologies, Inc.(2) 292,622
2,700 Sanmina Corp.(2) 259,200
10,000 Sawtek Inc.(2) 456,250
4,700 Scientific-Atlanta, Inc. 274,069
400 SCM Microsystems, Inc.(2) 25,150
3,334 SCM Microsystems, Inc. ORD(2) 200,414
6,000 Shibaura Mechatronics Corp. ORD 77,444
3,700 Siemens AG ORD 372,495
6,100 Solectron Corp.(2) 502,488
7,800 Sony Corp. ORD 1,446,996
Shares Value
--------------------------------------------------------------------------------
2,920 Telson Electronics Co. Ltd. ORD(2) $ 74,307
11,500 Teradyne, Inc.(2) 500,969
6,000 Tokyo Electron Ltd. ORD 624,264
3,700 Trafficmaster plc ORD(2) 53,640
1,000 UNION TOOL CO. ORD 115,823
2,400 Yushin Precision Equipment Co.,
Ltd. ORD 188,457
------------
24,605,347
------------
ELECTRICAL UTILITIES -- 1.2%
7,400 AES Corp. (The)(2) 428,738
11,300 Calpine Corp.(2) 666,700
12,200 Florida Progress Corp. 521,550
43,600 FPL Group, Inc. 1,907,500
6,800 Reliant Energy, Inc. 168,725
13,665 Sierra Pacific Resources 245,116
10,600 Southern Co. 247,775
6,900 Texas Utilities Co. 247,106
9,300 Tokyo Electric Power Co. ORD 262,441
------------
4,695,651
------------
ENERGY RESERVES & PRODUCTION -- 2.2%
18,300 Amerada Hess Corp. 1,060,256
5,200 Anadarko Petroleum Corp. 156,650
10,100 Apache Corp. 361,706
11,600 Atlantic Richfield Co. 1,117,950
40,100 Burlington Resources Inc. 1,348,362
3,000 Chevron Corp. 265,688
11,800 EOG Resources Inc. 218,300
18,100 Exxon Mobil Corp.(2) 1,435,556
6,000 Mobil Corp. 625,875
11,800 Murphy Oil Corp. 666,700
3,000 Noble Affiliates, Inc. 66,000
3,300 Penn West Petroleum Ltd. ORD(2) 66,045
5,500 Pogo Producing Co. 99,000
2,500 Texaco Inc. 152,344
23,900 Union Pacific Resources 312,194
19,900 Unocal Corp. 660,431
6,900 Vintage Petroleum, Inc. 73,744
------------
8,686,801
------------
ENTERTAINMENT -- 0.1%
8,200 Carnival Corp. Cl A 361,825
------------
ENVIRONMENTAL SERVICES -- 0.3%
79,680 Waste Management, Inc. 1,294,800
------------
EQUITY REAL ESTATE INVESTMENT TRUST(1)
2,000 TOUEI HOUSING CORP. ORD(2) 55,948
------------
FINANCIAL SERVICES -- 1.0%
500 Alpha Finance S.A. ORD 42,447
1,600 Alpha Leasing, S.A. ORD 82,902
39,400 Amvescap Plc ORD 407,546
1,900 Credit Suisse Group ORD 355,414
13,300 Fannie Mae 886,112
See Notes to Financial Statements www.americancentury.com 25
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
7,000 Federal Home Loan Mortgage
Corporation $ 345,625
4,500 Gallagher (Arthur J.) & Co. 245,250
6,000 Ichiyoshi Securities Co., Ltd. ORD 35,984
3,400 Industrial Finance Corporation of
Thailand (The) ORD(2) 1,482
6,173 ING Groep N.V. ORD 347,434
17,600 Man (E D & F) Group plc ORD 115,697
7,000 Marusan Securities Co., Ltd. ORD 46,722
800 Mycal Card Inc. ORD 38,477
2,800 NCO Group, Inc.(2) 129,675
3,100 Providian Financial Corp. 245,288
30,800 Skandia Forsakrings AB ORD 736,799
776 Tecis Holding AG ORD(2) 32,845
------------
4,095,699
------------
FOOD & BEVERAGE -- 2.2%
3,200 American Italian Pasta Co. Cl A(2) 96,200
142,058 Archer-Daniels-Midland Co. 1,766,846
9,500 Coca-Cola Company (The) 639,469
17,300 Coca-Cola Enterprises, Inc. 366,544
6,500 ConAgra, Inc. 156,812
5,600 Earthgrains Company 101,500
1,200 Groupe Danone ORD 278,502
4,100 Hormel Foods Corp. 182,706
15,500 IBP, Inc. 341,969
77,900 Interstate Bakeries Corp. 1,372,988
2,224 Kamps AG ORD 154,197
1,554 Kamps AG New Shares ORD(2) 101,949
11,500 Keebler Foods Co.(2) 316,969
111 Nestle S.A. ORD 199,750
14,300 PepsiCo, Inc. 494,244
11,200 Quaker Oats Co. (The) 730,800
7,200 Suiza Foods Corp.(2) 258,750
70,800 Tyson Foods, Inc. Cl A 1,230,150
------------
8,790,345
------------
FOREST PRODUCTS & PAPER -- 0.6%
600 Chesapeake Corp. 19,162
4,200 Georgia-Pacific Corp. 167,212
4,958 International Paper Co. 258,746
3,000 Kimberly-Clark Corp. 191,625
10,700 Portucel Industrial-Empresa
Produtora de Celulose, SA ORD 71,922
6,900 Rayonier, Inc. 306,619
10,603 St. Laurent Paperboard Inc. ORD
(Acquired 6/11/99-8/11/99,
Cost $135,723)(2)(3) 124,805
3,900 Temple-Inland Inc. 223,275
26,200 Westvaco Corp. 790,912
6,200 Weyerhaeuser Co. 379,750
------------
2,534,028
------------
GAS & WATER UTILITIES -- 0.6%
51,200 AGL Resources Inc. 947,200
79,811 Centrica plc ORD 237,146
Shares Value
--------------------------------------------------------------------------------
8,100 Independent Energy Holdings
plc ADR(2) $ 218,953
10,500 LG&E Energy Corp. 210,000
29,200 Washington Gas Light Co. 817,600
------------
2,430,899
------------
GROCERY STORES -- 0.1%
11,800 Iceland Group Plc ORD 43,545
5,349 Koninklijke Ahold NV ORD 170,392
8,700 Safeway Inc.(2) 320,812
------------
534,749
------------
HEAVY ELECTRICAL EQUIPMENT -- 0.6%
6,255 ABB Ltd. ORD 618,460
6,500 Cable Design Technologies
Corp.(2) 155,594
13,100 CommScope, Inc.(2) 551,838
9,200 Cooper Industries, Inc. 395,025
4,000 Cummins Engine Company, Inc. 162,000
7,200 Emerson Electric Co. 410,400
4,200 Rockwell International Corp. 208,425
------------
2,501,742
------------
HEAVY MACHINERY -- 0.2%
3,599 IHC Caland N.V. ORD 139,273
4,437 Neopost SA ORD(2) 183,327
2,119 Vestas Wind Systems A/S ORD(2) 335,730
------------
658,330
------------
HOME PRODUCTS -- 0.5%
1,334 Clarins ORD 133,762
3,900 Fortune Brands, Inc. 133,331
15,000 Kao Corporation ORD 446,113
1,000 Mandom ORD 28,465
12,200 Procter & Gamble Co. (The) 1,317,600
------------
2,059,271
------------
HOTELS -- 0.3%
912 Accor SA ORD 207,158
11,900 Harrah's Entertainment, Inc.(2) 328,738
1,800 MGM Grand, Inc.(2) 88,875
11,000 NH Hoteles, S.A. ORD(2) 131,139
32,000 Park Place Entertainment Corp.(2) 412,000
------------
1,167,910
------------
INDUSTRIAL PARTS -- 0.7%
18,800 BBA Group plc ORD 150,465
4,900 Brooks Automation, Inc.(2) 134,138
6,500 Cymer, Inc.(2) 259,594
8,300 Ingersoll-Rand Co. 402,031
40,000 Invensys plc ORD 186,588
3,300 Maillis ORD 118,880
1,000 SMC Corp. ORD 176,875
600 Swisslog Holding AG ORD 106,388
12,800 United Technologies Corp. 723,200
17,700 York International Corp. 394,931
------------
2,653,090
------------
26 1-800-345-2021 See Notes to Financial Statements
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
INDUSTRIAL SERVICES -- 0.6%
700 Benesse Corporation ORD $ 168,198
16,900 Capita Group Plc ORD 306,289
18,600 Compass Group PLC ORD 225,823
1,530 DIS Deutscher Industrie Service
AG ORD 115,639
900 Falck A/S ORD 89,578
5,200 Hertz Corp. Cl A 220,025
2,200 ISS International Service System
A/S ORD(2) 128,104
2,000 Pasona Softbank, Inc. ORD 213,977
5,300 Randstad Holdings N.V. ORD 265,986
10,900 Securitas AB Cl B ORD 181,308
14,000 Sembcorp Logistics Limited
ORD(2) 54,551
178,000 Singapore Technologies
Engineering Ltd. ORD 265,782
3,448 Unique International NV ORD 79,745
------------
2,315,005
------------
INFORMATION SERVICES -- 2.4%
1,417 Altran Technologies SA ORD 674,721
9,100 At Home Corp. Series A(2) 442,203
100 Bellsystem 24, Inc. ORD 114,841
5,900 BISYS Group, Inc. (The)(2) 341,278
1,406 Cap Gemini SA ORD 248,807
15,900 CGI Group, Inc. ORD(2) 408,826
3,600 CMG plc ORD 190,301
3,888 Computer Services Solutions
Holding NV ORD 72,877
2,210 Connecta AB ORD(2) 71,183
900 Data Communication System Co.
ORD 110,424
61,000 Datacraft Asia Limited ORD 295,240
4,344 Delta Informatics S.A. ORD 114,403
1,000 Diamond Computer Service Co.
ORD 24,588
14,400 Diamond Technology
Partners Inc.(2) 753,750
15,100 Dun & Bradstreet Corp. (The) 407,700
600 FI System ORD(2) 136,046
12,700 First Data Corp. 549,275
6,800 Getronics N.V. ORD 416,302
3,239 GFI Informatique ORD 338,161
2,400 IBS AB ORD(2) 47,680
601 Icon Medialab International
AB ORD(2) 65,351
1,704 Integra-Net SA ORD(2) 166,569
21,600 Logica plc ORD 522,766
2,400 Luminant Worldwide Corp.(2) 74,550
14,942 Mandator AB ORD 137,883
5,100 MedQuist Inc.(2) 145,509
5,700 Navigant Consulting, Inc.(2) 60,562
38 NTT Data Corp. ORD 928,740
13,911 Parity plc ORD 59,668
5,158 Sigma AB Cl B ORD 57,602
Shares Value
--------------------------------------------------------------------------------
2,405 Softbank S.A. GDR $ 77,561
500 Sumisho Computer Systems
Corp. ORD 37,299
1,754 Telinfo NV ORD 185,597
100 Telinfo NV-STRIPS ORD 1
6,300 TenFold Corp.(2) 190,181
1,500 The Management Network
Group, Inc.(2) 50,578
8,500 Valassis Communications, Inc.(2) 334,688
7,000 Young & Rubicam Inc. 365,312
------------
9,219,023
------------
INTERNET -- 1.4%
30,000 America Online Inc.(2) 2,180,625
1,100 GetThere.com, Inc.(2) 27,706
2,800 PlanetRx.com, Inc.(2) 55,125
8,074 PT MULTIMEDIA ORD(2) 318,303
1,000 RealNetworks, Inc.(2) 139,156
500 Retek Inc.(2) 33,891
122,054 Seat Pagine Gialle SpA ORD 248,460
2,100 Softbank Corp. ORD 1,519,140
10,500 Sterling Commerce, Inc.(2) 270,375
600 Tickets.com, Inc.(2) 12,506
1,318 Tiscali SpA ORD(2) 211,585
3,700 Verity, Inc.(2) 382,834
------------
5,399,706
------------
LEISURE -- 0.3%
7,400 Eastman Kodak Co. 457,875
13,000 GTECH Holdings Corp.(2) 273,000
9 Round One Corp. ORD 159,011
8,600 Station Casinos, Inc.(2) 206,400
------------
1,096,286
------------
LIFE & HEALTH INSURANCE -- 0.7%
26,400 Aetna Inc. 1,442,100
2,593 ASR Verzekeringsgroep N.V. ORD 149,992
5,500 Companhia de Seguros Mundial
Confianca, SA ORD(2) 289,602
16,400 Lincoln National Corp. 683,675
27,900 Mediolanum SpA ORD 244,611
------------
2,809,980
------------
MEDIA -- 2.7%
3,900 Acme Communications, Inc.(2) 134,794
7,400 Capital Radio plc ORD 160,772
25,600 CBS Corp.(2) 1,331,200
13,800 Charter Communications, Inc.(2) 319,556
12,800 Clear Channel Communications,
Inc.(2) 1,028,800
7,100 Comcast Corp. Cl A 320,831
4,100 Cox Communications, Inc. Cl A(2) 192,700
11,200 Disney (Walt) Co. 312,200
7,900 EchoStar Communications
Corp. Cl A(2) 521,647
2,123 EM.TV & Merchandising AG ORD 164,952
3,931 Fox Kids Europe NV ORD(2) 53,678
See Notes to Financial Statements www.americancentury.com 27
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
3,900 Grupo Televisa S.A. GDR(2) $ 190,369
11,520 Gruppo Editoriale L'Espresso ORD 325,060
1,999 Havas Advertising SA ORD 757,449
229 i-CABLE Communications
Limited ORD(2) 352
11,000 Infinity Broadcasting Corp. Cl A(2) 400,812
21,830 Mediaset SpA ORD 248,591
12,831 Modern Times Group
MTG AB Cl B ORD(2) 426,855
19,200 Mondadori (Arnoldo) Editore
SpA ORD 393,555
300 NRJ SA ORD 136,953
17,100 Pearson plc ORD 409,212
2,153 PrimaCom AG ORD(2) 98,178
300 PubliGroupe S.A. ORD 279,175
1,800 Radio One, Inc.(2) 113,512
2,400 Radio Unica Corp.(2) 66,225
4,400 RCN Corp.(2) 198,412
43,740 Saatchi & Saatchi plc ORD 213,816
7,750 Singapore Press Holdings
Ltd. ORD 145,226
1,600 Societe Television Francaise 1
ORD 580,464
4,033 Sogecable, S.A. ORD(2) 127,577
3,128 Talentum Oyj ORD 59,893
5,600 Viacom, Inc. Cl B(2) 278,600
36,600 WPP Group plc ORD 538,203
------------
10,529,619
------------
MEDICAL PRODUCTS & SUPPLIES -- 1.1%
3,000 ArthroCare Corp.(2) 181,969
2,900 Aurora Biosciences Corp.(2) 34,347
4,900 Bard (C.R.), Inc. 266,131
13,700 Beckman Coulter Inc. 654,175
9,700 CONMED Corp.(2) 244,622
5,000 Dexter Corp. (The) 180,625
43 Disetronic Holding AG ORD 184,394
13,500 Guidant Corp.(2) 675,000
1,100 IDEC Pharmaceuticals Corp.(2) 139,288
5,200 Johnson & Johnson 539,500
3,300 KeraVision, Inc.(2) 29,391
4,100 Mallinckrodt Inc. 136,325
14,600 Medtronic, Inc. 567,575
5,300 Mentor Corp. 123,556
4,300 VISX, Inc.(2) 333,653
------------
4,290,551
------------
MEDICAL PROVIDERS & SERVICES -- 0.4%
50,800 Columbia/HCA Healthcare Corp. 1,384,300
11,300 NovaMed Eyecare, Inc.(2) 87,752
7,800 Oxford Health Plans, Inc.(2) 114,319
3,100 PacifiCare Health Systems, Inc.(2) 145,312
------------
1,731,683
------------
Shares Value
--------------------------------------------------------------------------------
MINING & METALS -- 0.2%
4,500 Alcoa Inc. $ 294,750
2,700 Ball Corporation 100,406
8,500 Maverick Tube Corp.(2) 182,484
6,000 U.S. Aggregates, Inc.(2) 71,250
------------
648,890
------------
MOTOR VEHICLES & PARTS -- 0.9%
4,470 Athlon Groep N.V. ORD 91,219
51,900 Delphi Automotive Systems Corp. 817,425
18,300 Ford Motor Co. 924,150
4,400 General Motors Corp. 316,800
3,800 National R.V. Holdings, Inc.(2) 70,775
31,100 Superior Industries International,
Inc. 833,869
17,000 Toyota Motor Corp. ORD 577,346
------------
3,631,584
------------
MULTI-INDUSTRY -- 1.3%
6,800 CRH plc ORD 136,232
23,500 General Electric Co. (U.S.) 3,055,000
28,860 Premafin Finanziaria S.p.A. ORD(2) 14,978
18,600 Tyco International Ltd. 745,162
1,000 Venture Link Co. Limited ORD 101,099
11,209 Vivendi ORD 898,022
91,828 Wharf (Holdings) Ltd. ORD 232,925
------------
5,183,418
------------
OIL REFINING -- 0.2%
3,400 BP Amoco Plc ADR 207,188
1,444 Total SA Cl B ORD 192,231
12,900 Utilicorp United Inc. 259,612
------------
659,031
------------
OIL SERVICES -- 0.4%
20,400 Baker Hughes Inc. 515,100
9,300 R&B Falcon Corp.(2) 115,088
1,400 Fugro N.V. ORD 56,222
6,400 Global Marine Inc.(2) 98,000
7,100 Pride International Inc.(2) 102,062
6,500 Rowan Companies, Inc.(2) 111,312
11,300 Royal Dutch Petroleum Co. New
York Shares 655,400
------------
1,653,184
------------
PROPERTY & CASUALTY
INSURANCE -- 1.5%
19,700 Allstate Corp. 515,894
9,200 Ambac Financial Group, Inc. 501,400
9,500 American International Group, Inc. 980,875
3,044 Axa ORD 410,750
22,300 Chubb Corp. (The) 1,194,444
21,000 CNA Financial Corp.(2) 819,000
4,006 Fortis (B) ORD 138,188
44,500 Horace Mann Educators Corp. 976,219
13,600 Prudential Corporation PLC ORD 223,669
------------
5,760,439
------------
28 1-800-345-2021 See Notes to Financial Statements
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
PUBLISHING -- 0.4%
17,500 Banta Corp. $ 383,906
2,000 Central Newspapers, Inc. Cl A 75,625
13,100 Deluxe Corp. 343,056
1,900 New York Times Co. (The) Cl A 73,031
1,300 Times Mirror Co. (New) Cl A 83,931
9,100 VNU N.V. ORD 360,860
4,592 Wolters Kluwer NV ORD 138,596
------------
1,459,005
------------
RAILROADS -- 0.1%
10,200 CSX Corp. 362,738
5,400 Go-Ahead Group PLC (The) ORD 49,947
------------
412,685
------------
RESTAURANTS -- 0.5%
4,300 Brinker International, Inc.(2) 97,288
78,900 CBRL Group, Inc. 872,831
21,900 Jack in the Box Inc.(2) 461,269
23,500 J.D. Wetherspoon plc ORD 150,353
3,400 McDonald's Corp. 153,000
1,000 Skylark Co., Ltd. ORD 21,790
3,300 Tricon Global Restaurants Inc.(2) 136,950
------------
1,893,481
------------
SECURITIES & ASSET MANAGEMENT -- 0.7%
4,600 Franklin Resources, Inc. 144,612
3,445 Kempen & Company NV ORD 133,660
2,600 Merrill Lynch & Co., Inc. 209,625
14,300 Morgan Stanley Dean Witter & Co. 1,724,938
25,000 Nomura Securities Co., Ltd. ORD 446,604
63 Vontobel Holding AG Cl B ORD 105,370
------------
2,764,809
------------
SEMICONDUCTOR -- 3.5%
705 Aixtron AG ORD 96,879
13,100 Applied Materials, Inc.(2) 1,276,841
4,299 ARM Holdings plc ORD(2) 211,489
3,100 ASM Lithography Holding N.V.
New York Shares(2) 290,141
3,600 Asyst Technologies, Inc.(2) 144,225
15,600 Conexant Systems, Inc.(2) 922,838
25,700 Cypress Semiconductor Corp.(2) 700,325
3,174 Dialog Semiconductor plc ORD(2) 201,512
2,093 ELMOS Semiconductor
AG ORD(2) 60,113
8,213 Epcos AG ORD(2) 513,152
4,300 Exar Corp.(2) 209,759
4,000 Fujitsu Devices Inc. ORD 155,870
1,582 Gretag Imaging Group ORD 196,954
13,900 Integrated Device Technology,
Inc.(2) 327,084
6,500 Intel Corp. 498,062
3,700 Kopin Corp.(2) 240,962
7,000 KYOCERA CORP. ORD 845,799
9,900 Lam Research Corp.(2) 766,631
Shares Value
--------------------------------------------------------------------------------
3,300 Linear Technology Corp. $ 234,300
11,500 Micron Technology, Inc.(2) 771,938
4,000 Mimasu Semiconductor Industry
Co., Ltd. ORD 80,683
5,600 National Semiconductor Corp.(2) 238,000
3,300 PMC-Sierra, Inc.(2) 340,003
8,900 PRI Automation, Inc.(2) 421,359
3,600 Qlogic Corp.(2) 407,138
3,000 Samsung Electronics ORD 621,091
2,100 Shinkawa Ltd. ORD 68,227
5,000 STMicroelectronics N.V. New
York Shares 624,375
700 Techno Quartz Inc. ORD(2) 20,681
13,700 Texas Instruments Inc. 1,316,056
15,000 Venture Manufacturing
(Singapore) Ltd. ORD 151,695
7,900 Xilinx, Inc.(2) 706,803
------------
13,660,985
------------
SPECIALTY STORES -- 1.5%
2,900 Best Buy Co., Inc.(2) 181,250
11,927 Buffetti SpA ORD 107,935
2,891 Carrefour SA ORD 504,019
5,300 CVS Corp. 210,344
200 Don Quijote Co., Ltd. ORD 49,274
2,600 Douglas Holding AG ORD 111,749
800 Doutor Coffee Co., Ltd. ORD 85,591
590 Fancl Corp. ORD 209,639
2,945 Folli-Follie Abee ORD 143,110
3,500 Fred's, Inc. 45,719
24,600 Hennes & Mauritz AB Cl B ORD 780,787
2,200 Homac Corp. ORD 64,350
25,000 Home Depot, Inc. 1,976,562
400 Otsuka Kagu Limited ORD 125,245
1,700 Ryohin Keikaku Co. Limited ORD 401,305
11,000 Sunglass Hut International, Inc.(2) 134,406
3,400 Sunkus & Associates Inc. ORD 206,910
8,900 Tuesday Morning Corp.(2) 223,056
2,000 Yamada Denki ORD 206,125
5,300 Zale Corp.(2) 268,312
------------
6,035,688
------------
TELEPHONE -- 4.6%
17,000 AT&T Corp. 949,875
7,100 Bell Atlantic Corp. 449,519
24,700 BellSouth Corp. 1,140,831
35,576 British Telecommunications
plc ORD 715,239
19,074 Cable & Wireless
Communications plc ORD(2) 215,123
15,016 COLT Telecom Group plc ORD(2) 567,797
385 Dacom Corp. ORD 96,312
2,600 Dycom Industries, Inc.(2) 104,650
4,908 Energis plc ORD(2) 199,855
8,329 Fibernet Group plc ORD(2) 166,320
13,885 Global Crossing Holdings Ltd.(2) 604,431
See Notes to Financial Statements www.americancentury.com 29
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
17,900 Global TeleSystems Group, Inc.(2) $ 571,681
26,400 GTE Corp. 1,927,200
16 Japan Telecom Co. Ltd. ORD 628,190
3,500 KDD Corp. ORD 484,393
12,743 Kingston Communication (Hull)
PLC ORD(2) 142,600
3,565 KPNQwest N.V. ORD(2) 133,466
500 MCI WorldCom, Inc.(2) 41,344
34 Nippon Telegraph & Telephone
ORD 610,718
8,300 NTL Inc.(2) 756,856
20,000 SBC Communications Inc. 1,038,750
21,500 Sprint Corp. 1,491,562
5,500 Tele Danmark A/S ORD 354,522
47,400 Telecom Italia SpA ORD 522,575
38,512 Telefonica S.A. ORD(2) 802,600
5,100 Telefonos de Mexico,
S.A. Cl L ADR 472,069
71,563 TeleWest Communications
plc ORD(2) 336,964
37,187 Thus plc ORD(2) 233,466
1,900 U S WEST, Inc. 117,919
14,500 UnitedGlobalCom Cl A(2) 1,510,266
4,942 United Pan-Europe
Communications NV ORD(2) 485,579
4,977 Versatel Telecom International
NV ORD(2) 140,436
4,500 Viatel, Inc.(2) 187,875
------------
18,200,983
------------
TOBACCO -- 0.3%
5,100 Universal Corp. 131,006
36,300 UST Inc. 966,488
------------
1,097,494
------------
TRUCKING, SHIPPING & AIR FREIGHT -- 0.1%
5,000 Eagle USA Airfreight, Inc.(2) 168,438
7,900 Forward Air Corp.(2) 247,369
1,100 United Parcel Service, Inc. Cl B 72,669
------------
488,476
------------
WIRELESS TELECOMMUNICATIONS -- 3.0%
7,200 ALLTEL Corp. 622,800
15,750 Atlantic Telecom Group
PLC ORD(2) 183,673
77,279 Cable & Wireless Optus Limited
ORD(2) 201,655
204,000 China Telecom (Hong Kong) Ltd.
ORD(2) 1,095,320
5,617 Egyptian Mobile Phone Network
ORD(2) 191,706
9,000 Esat Telecom Group PLC ADR(2) 585,281
13,200 Europolitan Holdings AB ORD 166,032
8,910 Mannesmann AG ORD 1,876,622
5,700 Nextel Communications, Inc.(2) 565,012
31 NTT Mobile Communications
Network, Inc. ORD 1,089,321
Shares/Principal Amount Value
--------------------------------------------------------------------------------
15,200 Orange plc ORD(2) $ 460,144
6,800 QUALCOMM Inc.(2) 2,463,512
10,700 Shin Corporations Public Co.,
Limited ORD(2) 68,032
21,603 Sonera Group Oyj ORD 892,805
2,400 Sprint PCS(2) 220,200
6,000 Vodafone AirTouch PLC ADR 283,125
76,735 Vodafone AirTouch PLC ORD 361,930
4,500 VoiceStream Wireless Corp.(2) 415,266
------------
11,742,436
------------
TOTAL COMMON STOCKS 253,501,975
------------
(Cost $191,902,886)
PREFERRED STOCKS -- 0.4%
DEPARTMENT STORES(1)
400 Fielmann AG ORD 12,536
331 Shinsegae Department Store Co.
Rights ORD(2) 12,763
------------
25,299
------------
ENERGY RESERVES & PRODUCTION -- 0.1%
1,950,000 Petroleo Brasileiro S.A. ORD 393,955
------------
FINANCIAL SERVICES -- 0.3%
3,602 Marschollek, Lautenschlaeger
und Partner AG ORD 1,045,416
------------
MINING & METALS(1)
24,000 Usinas Siderurgicas de Minas
Gerais S.A. Cl A ORD 101,591
------------
MOTOR VEHICLES & PARTS(1)
50 Porsche AG ORD 134,283
------------
TOTAL PREFERRED STOCKS 1,700,544
------------
(Cost $665,741)
U.S. TREASURY SECURITIES -- 4.6%
$4,050,000 U.S. Treasury Notes, 5.50%,
3/31/00 4,050,653
1,925,000 U.S. Treasury Notes, 6.625%,
7/31/01 1,945,416
1,500,000 U.S. Treasury Notes, 4.75%,
2/15/04 1,427,326
3,000,000 U.S. Treasury Notes, 5.25%,
5/15/04 2,900,575
750,000 U.S. Treasury Notes, 4.75%,
11/15/08 674,183
2,250,000 U.S. Treasury Notes, 5.50%,
5/15/09 2,141,588
1,000,000 U.S. Treasury Notes, 6.00%,
8/15/09 987,612
1,200,000 U.S. Treasury Bonds, 8.75%,
5/15/17 1,460,748
150,000 U.S. Treasury Bonds, 7.875%,
2/15/21 171,642
30 1-800-345-2021 See Notes to Financial Statements
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
$ 800,000 U.S. Treasury Bonds, 6.125%,
11/15/27 $ 762,522
400,000 U.S. Treasury Bonds, 5.25%,
11/15/28 337,867
750,000 U.S. Treasury Bonds, 5.25%,
2/15/29 636,564
700,000 U.S. Treasury Bonds, 6.125%,
8/15/29 686,318
------------
TOTAL U.S. TREASURY SECURITIES 18,183,014
------------
(Cost $18,666,813)
U.S. GOVERNMENT AGENCY SECURITIES -- 2.8%
3,300,000 FHLB, 5.05%, 3/1/00 3,290,513
500,000 FNMA, 5.25%, 1/15/03 483,509
2,600,000 FNMA, 6.50%, 8/15/04 2,590,331
3,300,000 FNMA MTN, 6.23%, 7/21/08 3,084,298
1,500,000 SLMA MTN, VRN, 5.96%, 12/7/99,
resets weekly off
the 3-month T-Bill rate plus 0.60%
with no caps 1,498,540
------------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES 10,947,191
------------
(Cost $11,184,696)
SOVEREIGN GOVERNMENTS & AGENCIES -- 5.1%
EURO 5,999,851 Deutschland Republic, 6.00%,
9/15/03 6,329,924
EURO 4,300,000 Deutschland Republic,
Series 98, 4.125%,
7/4/08 4,018,726
CAD 560,000 Government of Canada,
5.00%, 3/15/00 379,926
CAD 600,000 Government of Canada,
6.00%, 6/1/08 404,092
JPY 560,000,000 Japan Global, Series 184,
2.90%, 12/20/05 5,948,488
DKK 4,100,000 Kingdom of Denmark, 8.00%,
3/15/06 631,773
USD 200,000 Province of British Columbia,
5.375%, 10/29/08 179,450
GBP 1,150,000 U.K. Treasury Bonds, 9.00%,
10/13/08 2,255,990
------------
TOTAL SOVEREIGN GOVERNMENTS
& AGENCIES 20,148,369
------------
(Cost $21,447,895)
MORTGAGE-BACKED SECURITIES(4) -- 4.7%
$ 209,399 FHLMC Pool #E68523, 6.50%,
12/1/12 205,197
771,797 FHLMC Pool #E00724, 7.00%,
6/1/14 769,277
43,363 FHLMC Pool #C00465, 8.00%,
6/1/26 44,016
169,800 FHLMC Pool #D72306, 8.00%,
6/1/26 172,360
Principal Amount Value
--------------------------------------------------------------------------------
$ 72,792 FHLMC Pool #D72431, 8.00%,
6/1/26 $ 73,890
117,558 FHLMC Pool #D72499, 8.00%,
7/1/26 119,331
498,675 FHLMC Pool #C30257, 7.00%,
8/1/29 487,852
2,741,276 FHLMC Pool #C30060, 7.50%,
8/1/29 2,738,587
681,810 FNMA Pool #373899, 6.50%,
3/1/12 668,026
125,525 FNMA Pool #125477, 6.50%,
4/1/12 122,987
581,462 FNMA Pool #369085, 6.50%,
4/1/12 569,706
32,007 FNMA Pool #377181, 6.50%,
4/1/12 31,360
335,115 FNMA Pool #377379, 6.50%,
4/1/12 328,340
489,449 FNMA Pool #252736, 7.50%,
8/1/14 494,734
148,374 FNMA Pool #341078, 7.00%,
5/1/26 145,208
244,995 FNMA Pool #250576, 7.00%,
6/1/26 239,766
443,898 FNMA Pool #373510, 7.50%,
3/1/27 443,000
1,023,806 FNMA Pool #412562, 6.50%,
1/1/28 979,099
996,837 FNMA Pool #503915, 7.00%,
7/1/29 974,580
398,184 FNMA Pool #504748, 7.00%,
7/1/29 389,475
700,000 FNMA REMIC, Series 1997-58,
Class PB PAC, 6.50%,
6/18/24 675,000
124,591 GNMA Pool #397233, 9.50%,
2/20/25 132,370
50,551 GNMA Pool #392995, 8.75%,
3/15/25 53,140
96,428 GNMA Pool #001991, 9.00%,
4/20/25 101,142
188,376 GNMA Pool #416856, 7.50%,
10/15/25 188,229
121,233 GNMA Pool #421254, 7.50%,
11/15/25 121,139
26,285 GNMA Pool #373704, 6.00%,
4/15/26 24,386
26,895 GNMA Pool #421388, 6.00%,
4/15/26 24,952
189,147 GNMA Pool #416761, 7.50%,
6/15/26 188,931
601,599 GNMA Pool #456569, 7.50%,
11/15/27 600,726
847,047 GNMA Pool #457351, 7.00%,
12/15/27 827,833
1,003,841 GNMA Pool #449491, 7.50%,
12/15/27 1,002,384
412,366 GNMA Pool #461623, 6.50%,
1/15/28 392,307
584,201 GNMA Pool #450628, 6.50%,
3/15/28 555,783
See Notes to Financial Statements www.americancentury.com 31
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
$1,420,466 GNMA Pool #466804, 6.50%,
4/15/28 $ 1,351,370
447,705 GNMA Pool #454559, 6.00%,
5/15/28 413,521
418,767 GNMA Pool #474782, 6.00%,
5/15/28 386,792
369,927 GNMA Pool #403868, 6.50%,
5/15/28 351,932
60,174 GNMA Pool #403912, 6.50%,
5/15/28 57,247
57,712 GNMA Pool #465798, 6.50%,
5/15/28 54,904
481,495 GNMA Pool #475802, 6.00%,
7/15/28 444,731
494,293 GNMA Pool #438917, 6.00%,
8/15/28 456,552
------------
TOTAL MORTGAGE-BACKED SECURITIES 18,402,162
------------
(Cost $18,819,114)
ASSET-BACKED SECURITIES(4) -- 1.2%
500,000 BMW Vehicle Owner Trust,
Series 1999 A, Class A3 SEQ,
6.41%, 4/25/03 498,658
300,000 Comed Transitional Funding Trust,
Series 1998-1, Class A6 SEQ,
5.63%, 6/25/09 281,056
900,000 GMAC Commercial Mortgage
Securities Inc., Series 1999 C1,
Class A2 SEQ, 6.18%,
5/15/33 831,892
230,861 Money Store (The) Home Equity
Trust, Series 1995 C,
Class A9 SEQ, 6.375%,
9/15/11 230,308
500,000 Money Store (The) Home Equity
Trust, Series 1997 C, Class
AF4 SEQ, 6.37%, 8/15/17 498,888
300,000 Money Store (The) Home Equity
Trust, Series 1997 C, Class
AF6 SEQ, 6.67%, 2/15/25 297,526
375,582 Nationslink Funding Corp.,
Series 1998-2, Class A1 SEQ,
6.00%, 11/20/07 359,557
300,000 Nationslink Funding Corp.,
Series 1999-1, Class A2
SEQ, 6.32%,
11/20/08 283,856
61,239 Textron Financial Corp.
Receivables Trust, Series
1997 A, Class A, 6.05%,
3/16/09 (Acquired 9/18/97,
Cost $61,158)(3) 61,076
551,402 Morgan Stanley Capital I, Series
1998 WF1, Class A1 SEQ,
6.25%, 7/15/07 538,711
700,000 Morgan Stanley Capital I,
Series 1998-WF1, Class
A2, 6.55%,
12/15/07 676,253
------------
TOTAL ASSET-BACKED SECURITIES 4,557,781
------------
(Cost $4,713,615)
Principal Amount Value
--------------------------------------------------------------------------------
CORPORATE BONDS -- 10.5%
AIRLINES -- 0.2%
$ 250,000 Atlas Air, Inc., 10.75%, 8/1/05 $ 256,250
500,000 Continental Airlines, Inc., 8.00%,
12/15/05 460,000
------------
716,250
------------
BANKS -- 1.3%
700,000 Banco Santander Central Hispano
Issuance, Ltd., 7.625%,
11/3/09 705,977
500,000 Bank of America N.A., 6.125%,
7/15/04 483,898
1,000,000 Bank of America N.A., VRN,
5.83%, 12/1/99, resets daily
off the Fed Funds rate plus
0.22% with no caps 999,598
400,000 Citigroup Inc., 7.125%, 5/15/06 396,427
650,000 First Bank System Inc., 7.625%,
5/1/05 654,065
1,900,000 Wells Fargo & Co. MTN, Series J,
VRN, 5.41%, 12/10/99, resets
quarterly off the 3-month
LIBOR minus 0.11% with no
caps 1,898,998
------------
5,138,963
------------
CHEMICALS -- 0.2%
650,000 du Pont (E.I.) de Nemours & Co.,
6.875%, 10/15/09 641,029
250,000 United Industries Corp., Series B,
9.875%, 4/1/09 (Acquired
8/16/99, Cost $220,000)(3) 226,250
------------
867,279
------------
CONSTRUCTION & REAL PROPERTY -- 0.1%
400,000 Chelsea GCA Realty Partners,
7.25%, 10/21/07 367,773
------------
DEFENSE/AEROSPACE -- 0.1%
450,000 Alliant Energy Resources, 7.375%,
11/9/09 (Acquired 11/4/99,
Cost $453,501)(3) 443,914
GBP 3,737 British Aerospace PLC, 7.45%,
11/30/03 5,865
------------
449,779
------------
DEPARTMENT STORES -- 0.1%
$ 300,000 Saks Inc., 8.25%, 11/15/08 289,007
------------
ELECTRICAL EQUIPMENT -- 0.7%
250,000 DII Group, Inc., 8.50%, 9/15/07
(Acquired 9/17/97, Cost
$250,000)(3) 247,500
250,000 Fisher Scientific International Inc.,
7.125%, 12/15/05 227,500
250,000 Fisher Scientific International Inc.,
9.00%, 2/1/08 237,500
32 1-800-345-2021 See Notes to Financial Statements
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
$ 300,000 Hutchison Whampoa Financial,
Series B, 7.45%, 8/1/17
(Acquired 11/19/99, Cost
$274,113)(3) $ 272,932
250,000 Qwest Communications
International Inc., Series B,
6.99%, 2/1/03(5) 192,500
1,250,000 Qwest Communications
International Inc., Series B,
7.50%, 11/1/08 1,234,752
250,000 Trench Electric & Trench Inc.,
10.25%, 12/15/07 196,250
------------
2,608,934
------------
ELECTRICAL UTILITIES -- 0.2%
400,000 PG&E Corp., 6.25%, 3/1/04 387,672
300,000 Southern Investments UK, 6.80%,
12/1/06 284,984
------------
672,656
------------
ENERGY RESERVES & PRODUCTION -- 0.6%
250,000 Belco Oil & Gas Corp., 8.875%,
9/15/07 238,125
700,000 EOG Resources Inc., 6.70%,
11/15/06 671,878
500,000 Ocean Energy, Inc., 9.75%,
10/1/06 550,000
750,000 Oryx Energy Co., 8.375%,
7/15/04 778,652
200,000 Triton Energy Ltd., 8.75%,
4/15/02 201,250
------------
2,439,905
------------
ENVIRONMENTAL SERVICES -- 0.1%
500,000 Allied Waste Industries, Inc.,
10.00%, 8/1/09 (Acquired
8/19/99, Cost $486,875)(3) 456,250
------------
FINANCIAL SERVICES -- 1.2%
1,500,000 Abbey National Treasury Services
PLC, VRN, 6.15%,
1/22/00, resets quarterly
off the 3-month LIBOR
minus 0.07% with no
caps 1,499,164
250,000 Associates Corp., N.A., 6.375%,
6/15/00 250,138
800,000 Ford Motor Credit Co., 7.375%,
10/28/09 805,215
1,900,000 Goldman Sachs Group Inc. MTN,
Series A, VRN, 5.54%,
12/23/99, resets quarterly off
the 3-month LIBOR plus 0.03%
with no caps 1,900,352
500,000 Metris Companies Inc., 10.00%,
11/1/04 467,500
------------
4,922,369
------------
FOOD & BEVERAGE -- 0.8%
600,000 Pepsi Bottling Group Inc., 5.625%,
2/17/09 (Acquired 2/3/99,
Cost $597,402)(3) 538,263
Principal Amount Value
--------------------------------------------------------------------------------
$ 600,000 Pepsi Bottling Group Inc.,
Series B, 7.00%, 3/1/29
(Acquired 3/3/99, Cost
$595,920)(3) $ 552,639
2,000,000 Unilever Capital Corp., 9.25%,
3/29/00 2,017,840
------------
3,108,742
------------
FOREST PRODUCTS & PAPER -- 0.4%
500,000 Abitibi-Consolidated Inc., 8.50%,
8/1/29 489,326
150,000 Domtar, Inc. 8.75%, 8/1/06 154,875
600,000 Fort James Corp., 6.625%,
9/15/04 579,131
500,000 Repap New Brunswick, 10.625%,
4/15/05 466,250
------------
1,689,582
------------
GOLD -- 0.1%
300,000 Barrick Gold Corp., 7.50%,
5/1/07 300,813
------------
HOTELS -- 0.2%
500,000 Hollywood Casino Corp., 11.25%,
5/1/07 517,500
500,000 Mandalay Resort Group, 7.625%,
7/15/13 431,250
------------
948,750
------------
INDUSTRIAL -- 0.1%
250,000 Intertek Finance PLC, Series B,
10.25%, 11/1/06 231,875
------------
INDUSTRIAL PARTS -- 0.2%
700,000 Petroleum Geo-Services ASA,
7.125%, 3/30/28 625,222
------------
INDUSTRIAL SERVICES -- 0.2%
500,000 Building One Services, 10.50%,
5/1/09 (Acquired 11/23/99,
Cost $470,000)(3) 468,750
500,000 United Rentals, Inc., Series B,
9.25%, 1/15/09 470,000
------------
938,750
------------
INFORMATION SERVICES -- 0.1%
500,000 PSINet Inc., Series B, 10.00%,
2/15/05 497,500
------------
LEISURE -- 0.1%
250,000 Imax Corp., 7.875%, 12/1/05 232,500
------------
LIFE & HEALTH INSURANCE -- 0.2%
400,000 Aetna Services, Inc., 6.75%,
8/15/01 398,556
600,000 Conseco Inc., 6.40%, 6/15/01 584,957
------------
983,513
------------
MEDIA -- 0.6%
500,000 AMFM Inc., 8.00%, 11/1/08 501,250
300,000 British Sky Broadcasting, 6.875%,
2/23/09 262,948
See Notes to Financial Statements www.americancentury.com 33
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
$ 500,000 Charter Communications Holdings
LLC, 8.625%, 4/1/09
(Acquired 3/12/99, Cost
$498,475)(3) $ 474,375
250,000 Fox Family Worldwide Inc., 9.25%,
11/1/07 228,750
100,000 Paramount Communications, Inc.,
7.50%, 1/15/02 100,567
600,000 TCI Communications, Inc., 8.75%,
8/1/15 665,382
100,000 Tele-Communications Inc., 8.25%,
1/15/03 103,857
100,000 Time Warner Inc., 8.11%,
8/15/06 104,054
------------
2,441,183
------------
MINING & METALS -- 0.3%
100,000 Alcan Aluminium Ltd., 5.875%,
4/1/00 99,966
250,000 Armco Inc., 9.00%, 9/15/07
(Acquired 9/9/97, Cost
$248,700)(3) 249,375
250,000 Kaiser Aluminum & Chemical,
12.75%, 2/1/03 248,125
550,000 Owens-Illinois Inc., 7.15%,
5/15/05 513,578
------------
1,111,044
------------
MOTOR VEHICLES & PARTS -- 0.3%
550,000 Lear Corp., 7.96%, 5/15/05
(Acquired 5/13/99, Cost
$550,000)(3) 534,875
500,000 Sonic Automotive, Inc., Series B,
11.00%, 8/1/08 486,250
250,000 Stanadyne Automotive Corp.,
Series B, 10.25%, 12/15/07 220,000
------------
1,241,125
------------
OIL REFINING -- 0.3%
600,000 Enron Corp., 6.625%, 11/15/05 577,076
600,000 USX Corp., 6.65%, 2/1/06 571,156
------------
1,148,232
------------
OIL SERVICES -- 0.1%
500,000 RBF Finance Co., 11.375%,
3/15/09 536,875
------------
PUBLISHING -- 0.5%
2,000,000 Reed Elsevier Capital MTN,
6.625%, 5/15/00 (Acquired
10/4/99, Cost $2,006,500)(3) 2,007,041
------------
REAL ESTATE -- 0.1%
300,000 Spieker Properties, Inc., 6.80%,
12/15/01 297,256
------------
SEMICONDUCTOR -- 0.1%
250,000 Flextronics Intl. Ltd., Series B,
8.75%, 10/15/07 248,125
------------
Principal Amount Value
--------------------------------------------------------------------------------
SPECIALTY STORES(1)
$ 100,000 Rite Aid Corp., 6.00%, 12/15/05
(Acquired 6/16/99, Cost
$91,801)(3) $ 61,000
------------
TELEPHONE -- 0.5%
500,000 Global Crossing Holdings Ltd.,
9.625%, 5/15/08 500,625
550,000 GTE North Inc., Series H, 5.65%,
11/15/08 495,447
400,000 MCI WorldCom, Inc., 7.55%,
4/1/04 408,632
500,000 Viatel, Inc., 11.25%, 4/15/08 491,250
------------
1,895,954
------------
THRIFTS -- 0.1%
500,000 Bay View Capital Corp., 9.125%,
8/15/02 426,250
------------
WIRELESS TELECOMMUNICATIONS -- 0.4%
250,000 360 Communications Co.,
7.125%, 3/1/03 249,997
250,000 AT&T Canada Inc., 7.76%,
6/15/08(5) 195,000
750,000 Nextel Communications, 9.375%,
11/15/09 (Acquired 11/5/99,
Cost $744,015)(3) 745,312
250,000 Orange plc, 8.00%, 8/1/08 254,375
------------
1,444,684
------------
TOTAL CORPORATE BONDS 41,345,181
------------
(Cost $42,241,678)
COMMERCIAL PAPER(6) -- 3.7%
CREDIT CARD & TRADE RECEIVABLES -- 0.7%
1,500,000 Dakota Certificates (Citibank),
5.86%, 1/10/00 (Acquired
9/8/99, Cost $1,469,723)(3) 1,490,005
1,500,000 WCP Funding Inc., 5.90%,
2/11/00 (Acquired 11/22/99,
Cost $1,480,088)(3) 1,482,231
------------
2,972,236
------------
ENERGY -- 0.5%
1,850,000 Motiva Enterprises LLC, 5.76%,
2/1/00 (Acquired 9/8/99,
Cost $1,806,784)(3) 1,831,065
------------
FINANCIAL SERVICES -- 2.2%
2,000,000 Falcon Asset Securities Corp.,
5.90%, 1/18/00 (Acquired
9/23/99, Cost $1,961,650)(3) 1,984,074
500,000 General Electric Capital Corp.,
5.93%, 3/9/00 491,908
1,772,000 Quincy Capital Corp., 5.20%,
12/17/99 (Acquired 7/14/99,
Cost $1,732,071)(3) 1,767,354
34 1-800-345-2021 See Notes to Financial Statements
Strategic Moderate--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
$1,400,000 Receivables Capital Corp., 5.93%,
2/18/00 (Acquired 11/5/99,
Cost $1,375,786)(3) $ 1,381,841
1,900,000 Transamerica Asset Funding Corp.,
5.82%, 2/10/00 (Acquired
8/17/99, Cost $1,845,632)(3) 1,877,798
1,000,000 Windmill Funding Corp., 5.42%,
1/14/00 (Acquired 7/14/99,
Cost $972,298)(3) 992,687
------------
8,495,662
------------
INFORMATION SERVICES -- 0.3%
1,400,000 Yale University, 5.76%, 2/14/00 1,382,741
------------
TOTAL COMMERCIAL PAPER 14,681,704
------------
(Cost $14,684,749)
CERTIFICATES OF DEPOSIT -- 1.4%
2,000,000 U.S. Bank, NA Minnesota, 5.41%,
12/14/99 1,999,824
1,500,000 Union Bank of California N.A.,
5.89%, 1/25/00 1,499,830
2,000,000 Westdeutsche Landesbank, 6.03%,
1/5/00 2,000,194
------------
TOTAL CERTIFICATES OF DEPOSIT 5,499,848
------------
(Cost $5,500,000)
Principal Amount Value
--------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 1.1%
Repurchase Agreement, BA Security Services,
Inc., (U.S. Treasury obligations), in a joint
trading account at 5.55%, dated 11/30/99,
due 12/1/99 (Delivery value $4,100,632) $ 4,100,000
------------
(Cost $4,100,000)
TOTAL INVESTMENT SECURITIES -- 100.0% $393,067,769
============
(Cost $333,927,187)
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Contracts Settlement Unrealized
to Sell Date Value Gain (Loss)
-------------------------------------------------------------------------------
1,810,063 EURO 12/30/99 $1,828,551 $3,541
431,225,200 JPY 12/30/99 4,254,504 (78,798)
----------------------------------
$6,083,055 $(75,257)
==================================
(Value on Settlement Date $6,007,798)
Forward foreign currency exchange contracts are designed to protect the fund's
foreign investments against declines in foreign currencies (also known as
hedging). The contracts are called "forward" because they allow the
fund to exchange a foreign currency for U.S. dollars on a specific date in the
future--and at a prearranged exchange rate.
NOTES TO SCHEDULE OF INVESTMENTS
ADR = American Depositary Receipt
CAD = Canadian Dollar
DKK = Danish Krone
FHLB = Federal Home Loan Bank
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
GBP = British Pound
GDR = Global Depositary Receipt
GNMA = Government National Mortgage Association
JPY = Japanese Yen
LIBOR = London Interbank Offered Rate
MTN = Medium Term Note
ORD = Foreign Ordinary Share
SLMA = Student Loan Marketing Association
USD = U.S. Dollar
VRN = Variable Rate Note. Interest reset date is indicated and used in
calculating the weighted average portfolio maturity. Rate shown is effective
November 30, 1999.
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.
(1) Industry is less than 0.05% of total investment securities.
(2) Non-income producing.
(3) 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 November 30,
1999, was $20,271,412 which represented 5.2% of net assets.
(4) Final maturity indicated. Expected remaining maturity used for purposes of
calculating the weighted average portfolio maturity.
(5) Step-coupon security. Yield to maturity at purchase is indicated. These
securities become interest bearing at a predetermined rate and future date
and are purchased at a substantial discount from their value at maturity.
(6) The rates for commercial paper are the yield to maturity at purchase.
See Notes to Financial Statements www.americancentury.com 35
Strategic Aggressive--Performance
--------------------------------------------------------------------------------
TOTAL RETURNS AS OF NOVEMBER 30, 1999
INVESTOR CLASS (INCEPTION 2/15/96) ADVISOR CLASS (INCEPTION 10/2/96)
LEHMAN THREE-MONTH LEHMAN THREE-MONTH
STRATEGIC AGGREGATE U.S. STRATEGIC AGGREGATE U.S.
AGGRESSIVE S&P 500 BOND INDEX TREASURY BILL AGGRESSIVE S&P 500 BOND INDEX TREASURY BILL
========================================================================================================================
6 MONTHS(1) 16.49% 7.38% 0.72% 2.39% 16.37% 7.38% 0.72% 2.39%
1 YEAR 25.69% 20.92% -0.04% 4.67% 25.46% 20.92% -0.04% 4.67%
========================================================================================================================
AVERAGE ANNUAL RETURNS
3 YEARS 16.28% 24.33% 5.57% 4.93% 15.98% 24.33% 5.57% 4.93%
LIFE OF FUND 15.73% 24.19% 6.00%(2) 4.97%(2) 16.19% 26.52% 6.57%(3) 4.93%(3)
(1) Returns for periods less than one year are not annualized.
(2) Since 2/29/96, the date nearest the class's inception for which data are
available.
(3) Since 9/30/96, the date nearest the class's inception for which data are
available.
See pages 66-68 for more information about share classes, returns, and the
comparative indices.
[mountain graph - data below]
GROWTH OF $10,000 OVER LIFE OF FUND
Value on 11/30/99
S&P 500 $23,102
Strategic Aggressive $17,537
Lehman Aggregate $12,441
Three-Month T-Bill $11,992
Strategic Lehman Three-Month
Aggressive S&P 500 Aggregate T-Bill
2/29/1996 $10,000 $10,000 $10,000 $10,000
3/31/1996 $10,101 $10,096 $9,930 $10,041
4/30/1996 $10,423 $10,244 $9,874 $10,082
5/31/1996 $10,544 $10,509 $9,855 $10,125
6/30/1996 $10,524 $10,549 $9,987 $10,167
7/31/1996 $10,081 $10,082 $10,014 $10,211
8/31/1996 $10,323 $10,295 $9,997 $10,254
9/30/1996 $10,767 $10,875 $10,171 $10,297
10/31/1996 $10,848 $11,175 $10,396 $10,339
11/30/1996 $11,150 $12,020 $10,574 $10,382
12/31/1996 $11,069 $11,782 $10,476 $10,425
1/31/1997 $11,353 $12,518 $10,508 $10,469
2/28/1997 $11,191 $12,616 $10,535 $10,513
3/31/1997 $10,805 $12,097 $10,418 $10,558
4/30/1997 $11,008 $12,819 $10,574 $10,603
5/31/1997 $11,658 $13,600 $10,674 $10,648
6/30/1997 $12,063 $14,211 $10,801 $10,691
7/31/1997 $12,774 $15,341 $11,093 $10,736
8/31/1997 $12,408 $14,481 $10,999 $10,783
9/30/1997 $13,078 $15,275 $11,160 $10,827
10/31/1997 $12,571 $14,765 $11,322 $10,871
11/30/1997 $12,693 $15,448 $11,374 $10,919
12/31/1997 $12,866 $15,714 $11,489 $10,966
1/31/1998 $12,908 $15,889 $11,636 $11,012
2/28/1998 $13,698 $17,034 $11,627 $11,058
3/31/1998 $14,295 $17,906 $11,666 $11,105
4/30/1998 $14,444 $18,087 $11,727 $11,150
5/31/1998 $14,295 $17,776 $11,839 $11,197
6/30/1998 $14,615 $18,498 $11,939 $11,243
7/31/1998 $14,466 $18,300 $11,964 $11,289
8/31/1998 $12,696 $15,657 $12,159 $11,335
9/30/1998 $12,994 $16,656 $12,444 $11,378
10/31/1998 $13,420 $18,012 $12,378 $11,416
11/30/1998 $13,953 $19,105 $12,448 $11,458
12/31/1998 $14,639 $20,206 $12,486 $11,501
1/31/1999 $14,906 $21,051 $12,574 $11,542
2/28/1999 $14,286 $20,396 $12,354 $11,585
3/31/1999 $14,744 $21,212 $12,422 $11,628
4/30/1999 $15,277 $22,033 $12,462 $11,669
5/31/1999 $15,055 $21,513 $12,352 $11,713
6/30/1999 $15,764 $22,709 $12,313 $11,758
7/31/1999 $15,676 $21,998 $12,260 $11,802
8/31/1999 $15,698 $21,890 $12,254 $11,848
9/30/1999 $15,632 $21,290 $12,396 $11,895
10/31/1999 $16,385 $22,638 $12,442 $11,942
11/30/1999 $17,537 $23,102 $12,441 $11,992
$10,000 investment made 2/29/96(2)
The graph at left shows the growth of a $10,000 investment over the life of the
fund, while the graph below shows the fund's year-by-year performance. The
S&P 500, Lehman Aggregate Bond, and Three-Month U.S. Treasury Bill (T-Bill)
indices are provided for comparison in each graph. Strategic Aggressive's total
returns include operating expenses (such as transaction costs and management
fees) that reduce returns, while the total returns of the indices do not. The
graphs are based on Investor Class shares only; performance for other classes
will vary due to differences in fee structures (see the Total Returns table
above). Past performance does not guarantee future results. Investment return
and principal value will fluctuate, and redemption value may be more or less
than original cost.
[bar graph - data below]
ONE-YEAR RETURNS OVER LIFE OF FUND (PERIODS ENDING NOVEMBER 30)
Strategic Lehman Three-Month
Aggressive S&P 500 Aggregate T-Bill
DATE RETURN RETURN RETURN RETURN
11/30/96* 11.49% 20.18% 5.75% 3.82%
11/30/97 13.84% 28.56% 7.55% 5.17%
11/30/98 9.93% 23.66% 9.45% 4.56%
11/30/99 25.69% 20.92% -0.04% 4.67%
* From 2/29/96 (the date nearest the class's inception for which index data are
available) to 11/30/96.
36 1-800-345-2021
Strategic Aggressive--Q&A
--------------------------------------------------------------------------------
An interview with Jeff Tyler and Brian Howell, portfolio managers on the
American Century Strategic Asset Allocation funds management team.
HOW DID STRATEGIC AGGRESSIVE PERFORM DURING THE YEAR ENDED NOVEMBER 30, 1999?
The fund's performance reflected the healthy performance of stocks, though
it was tempered slightly by the weak returns of bonds. For the fiscal year,
Strategic Aggressive posted a total return of 25.69%.* (See the previous page
for other fund performance information.)
HOW DID THE FUND'S ASSET MIX CHANGE DURING THE FISCAL YEAR?
We tend to keep Strategic Aggressive's asset mix close to its neutral
position of 75% stocks, 20% bonds, and 5% cash. From there, we try to make some
modest adjustments to add value.
The main change we made over the last year was to reduce the portfolio's
cash and bond positions slightly while expanding our stock holdings.
WHY DID YOU OVERWEIGHT STOCKS?
We felt that economic conditions would be positive for stocks. The U.S.
economy has continued to roll along, and we've seen a remarkable economic
rebound in other parts of the world as well.
Momentum also favored stocks--we expected investor demand for equities to
remain healthy in 1999. In fact, if anything it's gotten even stronger in the
past year.
HOW DID YOU POSITION STRATEGIC AGGRESSIVE'S STOCK PORTFOLIO?
For much of the fiscal year, we were overweight value stocks, which are
those considered to be undervalued based on their earnings growth. This was a
slight drag on performance because value shares were left in the dust by
technology and other growth stocks.
Over the past year, the S&P 500/BARRA Growth Index returned more than
28%, while the S&P 500/BARRA Value Index returned about 12%. This
growth/value performance gap was even more pronounced among small- and mid-cap
stocks.
WHY HAVEN'T VALUE STOCKS PERFORMED WELL OVER THE PAST COUPLE OF YEARS?
That's a good question. There are a lot of well-managed, profitable
companies whose stock prices look like great bargains, but nobody's buying.
Investors have been more interested in chasing what's hot--big, well-known
companies in 1998, technology companies in 1999.
Some market influences that are traditionally negative for growth
stocks--rising interest rates, the dollar weakening against the Japanese yen, an
ever-larger U.S. trade deficit--have been ignored by investors. As a result,
value stocks are struggling in an environment where they have historically
outperformed.
IF THE FUND WAS OVERWEIGHT VALUE STOCKS, DOES THAT MEAN THE PORTFOLIO WAS
UNDERWEIGHT GROWTH STOCKS?
Not really. Despite the value overweight, we still maintained a
growth-oriented portfolio. And the growth portion included plenty of exposure to
the technology sector.
* All fund returns referenced in this interview are for Investor Class shares.
[right margin]
"THE MAIN CHANGE WE MADE OVER THE LAST YEAR WAS TO REDUCE THE PORTFOLIO'S
CASH AND BOND POSITIONS SLIGHTLY WHILE EXPANDING OUR STOCK HOLDINGS."
[pie chart - data below]
ASSET ALLOCATION
(AS OF NOVEMBER 30, 1999)
PERCENT OF FUND INVESTMENTS
U.S. Stocks 58%
Foreign Stocks 22%
U.S. Bonds 11%
Foreign Bonds 5%
Money Market
Securities 4%
See page 67 for the fund's neutral asset mix.
Investment terms are defined in the Glossary on pages 68-69.
www.americancentury.com 37
Strategic Aggressive--Q&A
--------------------------------------------------------------------------------
(Continued)
For example, five of the fund's ten biggest stock holdings--including four
of the top five--were technology companies, and its four largest industry
holdings were technology-oriented.
IN STRATEGIC AGGRESSIVE'S FOREIGN SECURITIES, YOU BOOSTED YOUR ASIAN HOLDINGS
WHILE REDUCING YOUR EUROPEAN EXPOSURE (SEE THE CHART AT LEFT). WHY?
It was mainly a shift into Japan. We began to overweight Japanese stocks in
early 1999 because we liked the prospects there. We still saw favorable
opportunities in Europe, but we thought Japan had the highest potential for
extraordinary gains.
Our biggest foreign holdings reflect this shift. Six months ago, our top
five foreign stocks were all in Europe. Now, three of our top five are Japanese
companies (see the table at left).
This move into Japan paid off--although Europe had good equity returns, the
Japanese stock market skyrocketed. In addition, we suffered currency losses on
our European investments, whereas we earned currency gains on our Japanese
holdings.
WHAT ABOUT STRATEGIC AGGRESSIVE'S BOND PORTFOLIO?
We were overweight corporate bonds and underweight Treasurys for most of
the fiscal year. The strong economy favored corporate bonds--companies are more
likely to be able to pay off their debts when business is good. In addition, the
yield difference between corporate and Treasury bonds had grown unusually large,
meaning corporate bond yields looked very attractive compared with Treasury
yields.
However, sentiment in the corporate bond market shifted, with investors
becoming much more risk averse. For a variety of reasons--Y2K, inflation fears,
the health of the economy, a lack of liquidity in the market--bond investors
simply have a much smaller appetite for risk than they've had in the past few
years.
As a result, we emphasized bonds issued by large, well-known companies like
Ford Motor, Pepsi, and Wal-Mart. Bond investors have been more comfortable
holding these big-name companies.
LOOKING AHEAD, WHAT ARE YOUR PLANS FOR STRATEGIC AGGRESSIVE'S ASSET ALLOCATION
STRUCTURE?
We're sticking to the basics. Long term, that means staying true to our
neutral asset mix of 75% stocks, 20% bonds, and 5% cash. As in the past year,
though, we expect to stay underweight in cash and bonds, focusing on an
overweight in domestic stocks.
That said, we may become a little more defensive in the early part of 2000,
cutting back on stocks and adding to our cash position.
[left margin]
FUND'S U.S. STOCKS (AS OF NOVEMBER 30, 1999)
NUMBER OF COMPANIES 331
DIVIDEND YIELD 0.94%
PRICE/EARNINGS RATIO 27.7
% OF FUND'S % OF
U.S. STOCKS FUND
TOP 5 U.S. STOCKS
JDS UNIPHASE CORP. 2.8% 1.6%
MICROSOFT CORP. 2.5% 1.5%
CISCO SYSTEMS, INC. 2.1% 1.2%
GENERAL ELECTRIC CO. 2.0% 1.2%
QUALCOMM INC. 1.8% 1.0%
FUND'S FOREIGN STOCKS (AS OF NOVEMBER 30, 1999)
NUMBER OF COMPANIES 274
DIVIDEND YIELD 0.72%
% OF FUND'S % OF
COUNTRY FOREIGN STOCKS FUND
TOP 5 FOREIGN STOCKS
MANNESMANN AG GERMANY 2.4% 0.5%
SOFTBANK CORP. JAPAN 2.0% 0.5%
MARSCHOLLEK,
LAUTENSCHLAEGER
UND PARTNER AG GERMANY 1.9% 0.4%
SONY CORP. JAPAN 1.9% 0.4%
NTT DATA CORP. JAPAN 1.9% 0.4%
[pie chart - data below]
PERCENT OF FUND'S FOREIGN STOCKS
Europe 65%
Asia/Pacific 30%
Americas
(excluding U.S.) 5%
38 1-800-345-2021
Strategic Aggressive--Q&A
--------------------------------------------------------------------------------
(Continued)
WHY THE DEFENSIVE POSTURE?
We expect a bit of a letdown in the stock market in the first part of next
year. At the start of 1999, everyone was worrying about Y2K's effect on the
market. The general expectation was that investors would flee the market at the
end of the year and then jump back in after Y2K was out of the way. In other
words, there would be a "relief" rally in the first quarter of 2000.
But now just about everybody thinks that Y2K will be a non-event, so there
probably won't be a mass exodus at year-end or a big relief rally after the
first of the year. In fact, there's been such a strong surge in the market over
the last couple of months that we think stocks will go through a cooling-off
period in the coming months. This has happened frequently in the past few years
after a sudden and dramatic rally.
HOW WILL YOU POSITION THE FUND'S FOREIGN HOLDINGS?
We may bring some capital back home from our investments abroad. We've had
a great deal of success in Europe over the past several years, so we may take
some profits and reinvest the money domestically as we position the fund more
defensively.
We still like prospects in Japan--the economy, though still fragile,
continues to improve, and that should be good for the stock market. We intend to
maintain our overweight in Japanese stocks.
WHAT ABOUT THE PORTFOLIO'S BOND HOLDINGS?
We're still finding compelling values in corporate bonds, so we expect to
remain overweight there. The continued strength of the U.S. economy, as well as
the economic rebound elsewhere in the world, bodes well for corporate bonds.
However, we think the domestic economy's healthy growth rate will lead the
Federal Reserve to raise short-term interest rates again in the first quarter of
2000. As a result, we could see bond yields rise a little further in the coming
months.
[right margin]
"WE MAY BECOME A LITTLE MORE DEFENSIVE IN THE EARLY PART OF 2000, CUTTING
BACK ON STOCKS AND ADDING TO OUR CASH POSITION."
FUND'S U.S. BONDS (AS OF NOVEMBER 30, 1999)
NUMBER OF SECURITIES 93
WEIGHTED AVERAGE MATURITY 8.2 YRS
AVERAGE DURATION 5.0 YRS
[pie chart - data below]
PERCENT OF FUND'S U.S. BONDS
Corporate 58%
U.S. Govt. Agency 7%
Asset-Backed 6%
U.S. Treasury 9%
Mortgage-Backed 20%
FUND'S FOREIGN BONDS (AS OF NOVEMBER 30, 1999)
NUMBER OF SECURITIES 13
WEIGHTED AVERAGE MATURITY 5.9 YRS
AVERAGE DURATION 5.0 YRS
[pie chart - data below]
PERCENT OF FUND'S FOREIGN BONDS
Europe 49%
Asia/Pacific 22%
Americas
(excluding U.S.) 29%
www.americancentury.com 39
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
This schedule lists all investments owned by the fund, as well as each
security's market value, as of the last day of the reporting period. The
securities are grouped by asset class (such as common stocks, corporate bonds,
temporary cash investments, as applicable), and some asset classes are further
broken down by industry or country.
NOTE: For securities denominated in foreign currencies, the market value is
translated into U.S. dollars based on exchange rates as of the last day of the
reporting period.
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 79.5%
AIRLINES(1)
1,500 Ryanair Holdings plc ADR(2) $ 73,969
------------
ALCOHOL(1)
1,200 Coors (Adolph) Co. Cl B 59,700
------------
APPAREL & TEXTILES -- 0.3%
2,500 Gucci Group N.V. New
York Shares 208,125
2,800 Jones Apparel Group, Inc.(2) 74,725
8,500 VF Corp. 253,938
------------
536,788
------------
BANKS -- 4.9%
17,099 Anglo Irish Bank Corp. plc ORD 40,564
3,700 Argentaria SA ORD 84,641
20,000 Banca Intesa S.p.A. ORD 85,457
488 Banca Popolare Commercio e
Industria New 99 ORD(2) 11,316
2,301 Banca Popolare Commercio e
Industria ORD 56,580
2,828 Bipop-Carire SPA ORD 142,496
12 Bank Sarasin & Cie Cl B ORD 21,353
16,901 Bank of America Corp. 988,708
4,200 Barclays PLC ORD 121,442
9,400 Chase Manhattan Corp. 726,150
14,300 Citigroup Inc. 770,412
11,000 Dai-Ichi Kangyo Bank Ltd. ORD 127,081
6,978 DBS Group Holdings Ltd. ORD 90,494
1,500 DePfa Deutsche Pfandbriefbank
AG ORD 113,372
1,800 Fifth Third Bancorp 125,944
12,800 First Union Corp. 495,200
22,300 First Virginia Banks, Inc. 1,011,862
3,000 Fleet Boston Financial Corp. 113,438
400 HSBC Holdings plc ORD 5,305
16,000 Keppel Bank ORD 32,552
39,200 KeyCorp 1,058,400
12,000 Lloyds TSB Group plc ORD 153,839
8,500 Mellon Bank Corp. 309,719
2,600 Old Kent Financial Corp. 105,462
4,400 PNC Bank Corp. 245,300
1,300 Republic New York Corp. 91,894
800 Societe Generale Cl A ORD 172,527
15,000 Sumitomo Bank, Ltd. (The) ORD 230,418
34,900 Summit Bancorp. 1,138,612
7,700 UnionBanCal Corp. 339,281
Shares Value
--------------------------------------------------------------------------------
11,404 United Oversees Bank Ltd. ORD $ 101,761
5,600 Wachovia Corp. 433,650
9,000 Wells Fargo & Co. 418,500
2,900 Zions Bancorporation 187,141
------------
10,150,871
------------
CHEMICALS -- 1.1%
4,000 Air Products and Chemicals, Inc. 129,500
3,900 Dow Chemical Co. 456,788
4,700 du Pont (E.I.) de Nemours & Co. 279,356
100 Fuji Seal, Inc. ORD 6,086
3,313 Illinois Tool Works Inc. 214,517
16,400 IMC Global Inc. 264,450
4,800 Lubrizol Corp. 131,400
8,300 Minnesota Mining &
Manufacturing Co. 793,169
700 Symyx Technologies Inc.(2) 24,106
------------
2,299,372
------------
CLOTHING STORES -- 0.2%
2,700 AnnTaylor Stores Corp.(2) 116,606
5,400 Talbots, Inc. 261,900
------------
378,506
------------
COMPUTER HARDWARE &
BUSINESS MACHINES -- 3.8%
13,500 Adaptec, Inc.(2) 727,734
28,200 Cisco Systems Inc.(2) 2,514,206
5,300 Compaq Computer Corp. 129,519
6,400 Electronics for Imaging, Inc.(2) 284,600
11,400 EMC Corp. (Mass.)(2) 952,611
2,800 Emulex Corp.(2) 454,650
1,000 Foundry Networks, Inc.(2) 235,469
8,100 Hewlett-Packard Co. 768,487
2,400 Immersion Corp.(2) 64,125
9,900 International Business
Machines Corp. 1,020,319
300 Logitech International S.A. ORD(2) 69,982
5,100 Psion plc ORD 208,895
1,400 SanDisk Corp.(2) 92,444
5,000 Tandberg ASA ORD(2) 111,560
9,500 Xerox Corp. 257,094
------------
7,891,695
------------
COMPUTER SOFTWARE -- 4.8%
6,200 Active Software, Inc.(2) 390,988
10,200 Amdocs Ltd.(2) 358,912
14,300 Autodesk, Inc. 420,509
2,645 Baltimore Technologies plc ORD(2) 123,487
2,200 BMC Software, Inc.(2) 160,256
40 1-800-345-2021 See Notes to Financial Statements
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
500 Business Objects S.A. ADR(2) $ 44,000
200 CacheFlow Inc.(2) 30,238
700 Check Point Software
Technologies Ltd.(2) 99,181
5,900 Computer Associates
International, Inc. 383,500
22,208 Computershare Limited ORD 100,933
3,500 Comverse Technology, Inc.(2) 423,062
1,900 Cysive, Inc.(2) 95,475
2,660 Data Fellows Oyj ORD(2) 65,273
2,700 Eidos plc ORD(2) 239,299
2,026 Exact Holding NV ORD(2) 98,002
533 Fantastic Corp. ORD(2) 64,456
114 Heyde AG Beratung Software
ORD(2) 9,420
1,149 Intershop Communications
AG ORD(2) 229,230
6,836 Ixchange Technology Holdings
Limited ORD(2) 18,257
600 Liberate Technologies, Inc.(2) 76,650
1,072 London Bridge Software Holdings
plc ORD 76,293
33,200 Microsoft Corp.(2) 3,022,238
5,800 National Instruments Corp.(2) 174,181
4,600 ONYX Software Corp.(2) 148,062
11,100 Oracle Corp.(2) 752,372
19,600 Parametric Technology Corp.(2) 443,450
4,300 Proxicom, Inc.(2) 295,356
6,900 Radiant Systems, Inc.(2) 170,991
4,800 Rational Software Corp.(2) 245,100
1,500 Sage Group plc (The) ORD 103,782
2,800 Sapient Corp.(2) 216,912
1,249 Software AG ORD(2) 75,458
800 Symantec Corp.(2) 37,325
11,200 Unisys Corp.(2) 322,000
7,400 USWeb Corp.(2) 306,406
------------
9,821,054
------------
CONSTRUCTION & REAL PROPERTY -- 0.5%
1,000 Centex Construction Products Inc. 34,938
2,900 Centex Corp. 68,875
5,900 Elcor Corp. 191,012
3,000 Fuso Lexel Inc. ORD 47,998
103 Holderbank Financiere Glarus
AG Cl B ORD 129,074
7,200 Insituform Technologies,
Inc. Cl A(2) 180,450
900 Lafarge SA ORD 84,938
5,600 Pinnacle Holdings Inc.(2) 159,775
4,600 Quanta Services, Inc.(2) 128,800
------------
1,025,860
------------
CONSUMER DURABLES -- 0.1%
6,200 Assa Abloy AB Cl B ORD 72,518
2,800 Dorel Industries Inc. Cl B ORD(2) 44,640
------------
117,158
------------
Shares Value
--------------------------------------------------------------------------------
DEFENSE/AEROSPACE -- 0.5%
7,800 Boeing Co. $ 318,338
7,117 British Aerospace PLC ORD 40,788
3,900 Cobham PLC ORD 45,450
1,700 General Dynamics Corp. 87,656
16,200 Lockheed Martin Corp. 321,975
6,300 Raytheon Co. Cl B 193,331
------------
1,007,538
------------
DEPARTMENT STORES -- 1.7%
11,900 Ames Department Stores, Inc.(2) 315,722
900 Fast Retailing Co. Ltd. ORD 335,689
1,100 Galeries Lafayette ORD 167,720
2,102 Matalan PLC ORD 46,759
8,200 May Department Stores Co. (The) 275,725
1,000 Nitori Co. ORD(2) 40,734
1,300 Pinault-Printemps-Redoute
SA ORD 271,186
1,100 Shinsegae Department Store
Co. ORD 67,846
8,000 ShopKo Stores, Inc.(2) 181,500
31,500 Wal-Mart Stores, Inc. 1,815,187
------------
3,518,068
------------
DRUGS -- 4.7%
13,400 Amgen Inc.(2) 610,119
1,800 Andrx Corp.(2) 92,644
4,100 AstraZeneca Group plc ORD 183,262
1,400 Biogen, Inc.(2) 102,244
1,200 Biovail Corp. International(2) 83,475
16,500 Bristol-Myers Squibb Co. 1,205,531
7,800 ChiRex Inc.(2) 270,806
6,300 Chiron Corp.(2) 206,522
2,000 Forest Laboratories, Inc.(2) 102,375
2,400 Genzyme Corp.(2) 86,325
2,400 IGEN International, Inc.(2) 61,500
7,100 IVAX Corp.(2) 144,219
4,720 MedImmune, Inc.(2) 567,138
161 Novartis AG ORD 250,955
1,057 Novo Nordisk A/S Cl B ORD 138,126
24,500 Pfizer, Inc. 886,594
12,100 Pharmacia & Upjohn Inc. 661,719
10,800 Protein Design Labs, Inc.(2) 432,675
1,100 QIAGEN N.V.(2) 73,494
5,800 QLT PhotoTherapeutics Inc.
ORD(2) 259,701
23,900 Schering-Plough Corp. 1,221,888
1,400 SciQuest.com, Inc.(2) 46,156
12,700 Shire Pharmaceuticals Group
PLC ORD(2) 135,627
3,000 Takeda Chemical Inds. ORD 177,267
18,600 Warner-Lambert Co. 1,668,187
------------
9,668,549
------------
See Notes to Financial Statements www.americancentury.com 41
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT -- 8.8%
428 ADVA AG Optical Networking
ORD(2) $ 58,228
3,500 Advanced Energy Industries, Inc.(2) 117,797
1,687 Alcatel Alsthom Compagnie
Generale ORD 327,264
7,000 ANTEC Corp.(2) 392,000
7,700 C-COR.net Corp.(2) 394,866
6,400 Celestica Inc. New York Shares(2) 449,600
9,300 CIENA Corp.(2) 408,328
5,500 Corning Inc. 515,281
8,400 DII Group, Inc.(2) 530,775
3,400 DSP Group, Inc.(2) 235,662
612 Effnet Group AB ORD(2) 19,568
3,600 Ericsson (L.M.) Telephone
Co. ADR 173,588
9,000 Fujitsu Ltd. ORD 319,788
4,500 Harmonic Lightwaves, Inc.(2) 270,844
32,000 Hitachi Ltd. ORD 442,874
14,600 JDS Uniphase Corp.(2) 3,339,332
500 Keyence Corporation ORD 142,324
2,300 KLA-Tencor Corporation(2) 194,566
28 Kudelski SA ORD(2) 129,225
13,900 Lucent Technologies Inc. 1,015,569
16,600 Marconi plc ORD 212,546
1,000 Matsushita Communication
Industrial Co., Ltd. ORD 192,383
6,000 Matsushita Electric Industrial Co.,
Ltd. ORD 152,238
5,300 Motorola, Inc. 605,525
6,000 NEC Corp. ORD 140,459
3,500 Nokia Corp. Cl A ADR 483,656
8,900 Nortel Networks Corp. New York
Shares 658,600
6,138 NXT plc ORD(2) 128,942
7,000 Omron Corp. ORD 171,427
2,000 Optical Coating Laboratory, Inc. 393,438
1,700 Orbotech Ltd.(2) 155,975
3,272 Phillips Electronics N.V. New
York Shares 391,004
21,100 Pinnacle Systems, Inc.(2) 694,981
4,600 Powerwave Technologies, Inc.(2) 274,706
2,400 Sanmina Corp.(2) 230,400
8,400 Sawtek Inc.(2) 383,250
4,700 Scientific-Atlanta, Inc. 274,069
300 SCM Microsystems, Inc.(2) 18,862
2,347 SCM Microsystems, Inc. ORD(2) 141,084
4,000 Shibaura Mechatronics Corp. ORD 51,629
2,200 Siemens AG ORD 221,483
5,700 Solectron Corp.(2) 469,538
4,700 Sony Corp. ORD 871,908
2,070 Telson Electronics Co. Ltd. ORD(2) 52,676
9,900 Teradyne, Inc.(2) 431,269
4,000 Tokyo Electron Ltd. ORD 416,176
2,600 Trafficmaster plc ORD(2) 37,693
Shares Value
--------------------------------------------------------------------------------
1,000 UNION TOOL CO. ORD $ 115,823
2,000 Yushin Precision Equipment Co.,
Ltd. ORD 157,048
------------
18,006,267
------------
ELECTRICAL UTILITIES -- 1.4%
6,400 AES Corp. (The)(2) 370,800
10,700 Calpine Corp.(2) 631,300
5,800 Florida Progress Corp. 247,950
19,800 FPL Group, Inc. 866,250
4,900 Minnesota Power & Light Co. 83,912
3,700 Reliant Energy, Inc. 91,806
6,492 Sierra Pacific Resources 116,450
4,000 Southern Co. 93,500
5,200 Texas Utilities Co. 186,225
5,700 Tokyo Electric Power Co. ORD 160,851
------------
2,849,044
------------
ENERGY RESERVES & PRODUCTION -- 2.1%
9,500 Amerada Hess Corp. 550,406
2,400 Anadarko Petroleum Corp. 72,300
5,100 Apache Corp. 182,644
4,100 Atlantic Richfield Co. 395,138
18,900 Burlington Resources Inc. 635,512
1,400 Chevron Corp. 123,988
10,100 EOG Resources Inc. 186,850
9,400 Exxon Mobil Corp.(2) 745,538
3,800 Mobil Corp. 396,388
5,600 Murphy Oil Corp. 316,400
2,600 Noble Affiliates, Inc. 57,200
2,300 Penn West Petroleum Ltd. ORD(2) 46,031
5,500 Pogo Producing Co. 99,000
12,500 Union Pacific Resources 163,281
9,400 Unocal Corp. 311,962
6,300 Vintage Petroleum, Inc. 67,331
------------
4,349,969
------------
ENTERTAINMENT -- 0.1%
2,800 Carnival Corp. Cl A 123,550
------------
ENVIRONMENTAL SERVICES -- 0.3%
37,712 Waste Management, Inc. 612,820
------------
FINANCIAL SERVICES -- 1.1%
400 Alpha Finance S.A. ORD 33,958
1,100 Alpha Leasing, S.A. ORD 56,995
23,200 Amvescap Plc ORD 239,976
1,200 Credit Suisse Group ORD 224,472
6,300 Fannie Mae 419,738
3,300 Federal Home Loan Mortgage
Corporation 162,938
1,800 Gallagher (Arthur J.) & Co. 98,100
4,000 Ichiyoshi Securities Co., Ltd. ORD 23,989
2,600 Industrial Finance Corporation of
Thailand (The) ORD(2) 1,133
3,739 ING Groep N.V. ORD 210,442
42 1-800-345-2021 See Notes to Financial Statements
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
12,200 Man (E D & F) Group plc ORD $ 80,199
4,000 Marusan Securities Co., Ltd. ORD 26,698
600 Mycal Card Inc. ORD 28,857
2,800 NCO Group, Inc.(2) 129,675
1,400 Providian Financial Corp. 110,775
18,500 Skandia Forsakrings AB ORD 442,558
552 Tecis Holding AG ORD(2) 23,364
------------
2,313,867
------------
FOOD & BEVERAGE -- 2.4%
3,300 American Italian Pasta Co. Cl A(2) 99,206
67,176 Archer-Daniels-Midland Co. 835,502
9,400 Coca-Cola Company (The) 632,738
16,100 Coca-Cola Enterprises, Inc. 341,119
2,900 ConAgra, Inc. 69,962
2,600 Earthgrains Company 47,125
700 Groupe Danone ORD 162,459
2,000 Hormel Foods Corp. 89,125
7,200 IBP, Inc. 158,850
36,900 Interstate Bakeries Corp. 650,362
1,515 Kamps AG ORD 105,040
1,057 Kamps AG New Shares ORD(2) 69,344
5,400 Keebler Foods Co.(2) 148,838
67 Nestle S.A. ORD 120,570
13,400 PepsiCo, Inc. 463,137
5,100 Quaker Oats Co. (The) 332,775
3,400 Suiza Foods Corp.(2) 122,188
33,000 Tyson Foods, Inc. Cl A 573,375
------------
5,021,715
------------
FOREST PRODUCTS & PAPER -- 0.5%
2,300 Georgia-Pacific Corp. 91,569
2,527 International Paper Co. 131,878
1,200 Kimberly-Clark Corp. 76,650
7,300 Portucel Industrial-Empresa
Produtora de Celulose, SA ORD 49,068
2,900 Rayonier, Inc. 128,869
6,862 St. Laurent Paperboard Inc. ORD
(Acquired 6/11/99-8/16/99,
Cost $86,909)(2)(3) 80,770
12,400 Westvaco Corp. 374,325
2,900 Weyerhaeuser Co. 177,625
------------
1,110,754
------------
GAS & WATER UTILITIES -- 0.6%
24,200 AGL Resources Inc. 447,700
48,523 Centrica plc ORD 144,179
5,700 Independent Energy Holdings
plc ADR(2) 154,078
3,200 LG&E Energy Corp. 64,000
13,600 Washington Gas Light Co. 380,800
------------
1,190,757
------------
GROCERY STORES -- 0.3%
8,300 Iceland Group Plc ORD 30,629
3,147 Koninklijke Ahold NV ORD 100,248
Shares Value
--------------------------------------------------------------------------------
5,000 Kroger Co. (The)(2) $ 106,562
8,200 Safeway Inc.(2) 302,375
------------
539,814
------------
HEAVY ELECTRICAL EQUIPMENT -- 0.7%
3,987 ABB Ltd. ORD 394,213
5,700 Cable Design Technologies Corp(2) 136,444
8,900 CommScope, Inc.(2) 374,912
4,400 Cooper Industries, Inc. 188,925
800 Cummins Engine Company, Inc. 32,400
3,400 Emerson Electric Co. 193,800
1,800 Rockwell International Corp. 89,325
------------
1,410,019
------------
HEAVY MACHINERY -- 0.2%
2,312 IHC Caland N.V. ORD 89,469
3,157 Neopost SA ORD(2) 130,440
1,423 Vestas Wind Systems A/S ORD(2) 225,457
------------
445,366
------------
HOME PRODUCTS -- 0.7%
910 Clarins ORD 91,247
1,700 Fortune Brands, Inc. 58,119
9,000 Kao Corporation ORD 267,668
9,600 Procter & Gamble Co. (The) 1,036,800
1,000 Mandom ORD 28,465
------------
1,482,299
------------
HOTELS -- 0.5%
553 Accor SA ORD 125,612
10,200 Harrah's Entertainment, Inc.(2) 281,775
1,600 MGM Grand, Inc.(2) 79,000
7,700 NH Hoteles, S.A. ORD(2) 91,797
27,900 Park Place Entertainment Corp.(2) 359,212
------------
937,396
------------
INDUSTRIAL PARTS -- 0.9%
11,400 BBA Group plc ORD 91,240
4,600 Brooks Automation, Inc.(2) 125,925
5,500 Cymer, Inc.(2) 219,656
3,800 Ingersoll-Rand Co. 184,062
24,300 Invensys plc ORD 113,352
2,300 Maillis ORD 82,856
600 SMC Corp. ORD 106,125
400 Swisslog Holding AG ORD 70,926
10,400 United Technologies Corp. 587,600
8,300 York International Corp. 185,194
------------
1,766,936
------------
INDUSTRIAL SERVICES -- 0.7%
500 Benesse Corporation ORD 120,141
10,700 Capita Group Plc ORD 193,923
11,300 Compass Group PLC ORD 137,193
1,044 DIS Deutscher Industrie Service
AG ORD 78,907
700 Falck A/S ORD 69,672
2,300 Hertz Corp. Cl A 97,319
See Notes to Financial Statements www.americancentury.com 43
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
1,300 ISS International Service System
A/S ORD(2) $ 75,698
2,000 Pasona Softbank, Inc. ORD(2) 213,977
3,200 Randstad Holdings N.V. ORD 160,595
6,700 Securitas AB Cl B ORD 111,446
10,000 Sembcorp Logistics Limited
ORD(2) 38,965
116,000 Singapore Technologies
Engineering Ltd. ORD 173,206
2,724 Unique International NV ORD 63,000
------------
1,534,042
------------
INFORMATION SERVICES -- 3.4%
947 Altran Technologies SA ORD 450,925
7,900 At Home Corp. Series A(2) 383,891
5,800 BISYS Group, Inc. (The)(2) 335,494
843 Cap Gemini SA ORD 149,178
11,000 CGI Group, Inc. ORD(2) 282,836
2,200 CMG plc ORD 116,295
2,650 Computer Services Solutions
Holding NV ORD 49,672
1,571 Connecta AB ORD(2) 50,601
600 Data Communication System Co.
ORD 73,616
40,000 Datacraft Asia Limited ORD 193,600
3,036 Delta Informatics S.A. ORD 79,956
1,000 Diamond Computer Service Co.
ORD 24,588
13,200 Diamond Technology Partners
Inc.(2) 690,938
7,100 Dun & Bradstreet Corp. (The) 191,700
425 FI System ORD(2) 96,366
11,700 First Data Corp. 506,025
4,100 Getronics N.V. ORD 251,005
2,212 GFI Informatique ORD 230,939
1,600 IBS AB ORD(2) 31,786
410 Icon Medialab International
AB ORD(2) 44,582
1,179 Integra-Net SA ORD(2) 115,249
12,700 Logica plc ORD 307,367
2,100 Luminant Worldwide Corp.(2) 65,231
10,561 Mandator AB ORD 97,456
4,700 MedQuist Inc.(2) 134,097
2,800 Navigant Consulting, Inc.(2) 29,750
35 NTT Data Corp. ORD 855,418
9,425 Parity plc ORD 40,427
3,566 Sigma AB Cl B ORD 39,823
1,639 Softbank S.A. GDR 52,858
1,076 Telinfo NV ORD 113,856
86 Telinfo NV-STRIPS ORD 1
5,700 TenFold Corp.(2) 172,069
1,500 The Management Network
Group, Inc.(2) 50,578
22,552 Thus plc ORD(2) 141,585
4,200 Valassis Communications, Inc.(2) 165,375
6,400 Young & Rubicam Inc. 334,000
------------
6,949,133
------------
Shares Value
--------------------------------------------------------------------------------
INTERNET -- 1.9%
25,000 America Online Inc.(2) $ 1,817,188
1,000 GetThere.com, Inc.(2) 25,188
2,600 PlanetRx.com, Inc.(2) 51,188
5,341 PT MULTIMEDIA ORD(2) 210,559
800 RealNetworks, Inc.(2) 111,325
500 Retek Inc.(2) 33,891
74,023 Seat Pagine Gialle SpA ORD 150,685
1,300 Softbank Corp. ORD 940,420
5,000 Sterling Commerce, Inc.(2) 128,750
400 Tickets.com, Inc.(2) 8,338
950 Tiscali SpA ORD(2) 152,508
3,500 Verity, Inc.(2) 362,141
------------
3,992,181
------------
LEISURE -- 0.3%
3,700 Eastman Kodak Co. 228,938
6,400 GTECH Holdings Corp.(2) 134,400
6 Round One Corp. ORD 106,007
4,000 Station Casinos, Inc.(2) 96,000
------------
565,345
------------
LIFE & HEALTH INSURANCE -- 0.7%
12,500 Aetna Inc. 682,812
1,657 ASR Verzekeringsgroep N.V. ORD 95,849
3,800 Companhia de Seguros Mundial
Confianca, SA ORD(2) 200,089
8,100 Lincoln National Corp. 337,669
15,600 Mediolanum SpA ORD 136,772
------------
1,453,191
------------
MEDIA -- 3.6%
3,600 Acme Communications, Inc.(2) 124,425
5,200 Capital Radio plc ORD 112,975
18,500 CBS Corp.(2) 962,000
12,500 Charter Communications, Inc.(2) 289,453
12,300 Clear Channel Communications,
Inc.(2) 988,611
3,100 Comcast Corp. Cl A 140,081
2,300 Cox Communications, Inc. Cl A(2) 108,100
5,300 Disney (Walt) Co. 147,738
6,900 EchoStar Communications Corp.
Cl A(2) 455,616
1,287 EM.TV & Merchandising AG ORD 99,997
2,816 Fox Kids Europe NV ORD(2) 38,453
2,300 Grupo Televisa S.A. GDR(2) 112,269
8,230 Gruppo Editoriale L'Espresso ORD 232,226
1,238 Havas Advertising SA ORD 469,096
136 i-CABLE Communications
Limited ORD(2) 209
11,100 Infinity Broadcasting Corp. Cl A(2) 404,456
13,838 Mediaset SpA ORD 157,581
8,324 Modern Times Group
MTG AB Cl B ORD(2) 276,919
12,500 Mondadori (Arnoldo) Editore
SpA ORD 256,220
200 NRJ SA ORD 91,302
44 1-800-345-2021 See Notes to Financial Statements
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
10,400 Pearson plc ORD $ 248,878
1,443 PrimaCom AG ORD(2) 65,802
200 PubliGroupe S.A. ORD 186,117
1,500 Radio One, Inc.(2) 94,594
2,200 Radio Unica Corp.(2) 60,706
4,000 RCN Corp.(2) 180,375
30,796 Saatchi & Saatchi plc ORD 150,542
5,040 Singapore Press Holdings Ltd.
ORD 94,444
1,000 Societe Television Francaise
1 ORD 362,790
2,370 Sogecable, S.A. ORD(2) 74,971
2,230 Talentum Oyj ORD 42,698
3,200 Viacom, Inc. Cl B(2) 159,200
21,800 WPP Group plc ORD 320,569
------------
7,509,413
------------
MEDICAL PRODUCTS & SUPPLIES -- 1.4%
2,800 ArthroCare Corp.(2) 169,838
2,200 Aurora Biosciences Corp.(2) 26,056
2,200 Bard (C.R.), Inc. 119,488
6,500 Beckman Coulter Inc. 310,375
8,400 CONMED Corp.(2) 211,838
2,400 Dexter Corp. (The) 86,700
29 Disetronic Holding AG ORD 124,359
13,300 Guidant Corp.(2) 665,000
600 IDEC Pharmaceuticals Corp.(2) 75,975
2,400 Johnson & Johnson 249,000
2,700 KeraVision, Inc.(2) 24,047
2,000 Mallinckrodt Inc. 66,500
13,600 Medtronic, Inc. 528,700
4,500 Mentor Corp. 104,906
1,800 VISX, Inc.(2) 139,669
------------
2,902,451
------------
MEDICAL PROVIDERS & SERVICES -- 0.4%
24,000 Columbia/HCA Healthcare Corp. 654,000
12,000 NovaMed Eyecare, Inc.(2) 93,188
3,200 Oxford Health Plans, Inc.(2) 46,900
1,500 PacifiCare Health Systems, Inc.(2) 70,312
------------
864,400
------------
MINING & METALS -- 0.2%
2,100 Alcoa Inc. 137,550
1,400 Ball Corporation 52,062
7,800 Maverick Tube Corp.(2) 167,456
5,200 U.S. Aggregates, Inc.(2) 61,750
------------
418,818
------------
MOTOR VEHICLES & PARTS -- 0.9%
2,979 Athlon Groep N.V. ORD 60,792
24,500 Delphi Automotive Systems Corp. 385,875
9,300 Ford Motor Co. 469,650
1,700 General Motors Corp. 122,400
3,600 National R.V. Holdings, Inc.(2) 67,050
Shares Value
--------------------------------------------------------------------------------
14,700 Superior Industries International,
Inc. $ 394,144
11,000 Toyota Motor Corp. ORD 373,577
------------
1,873,488
------------
MULTI-INDUSTRY -- 1.8%
4,000 CRH plc ORD 80,136
18,500 General Electric Co. (U.S.) 2,405,000
20,540 Premafin Finanziaria S.p.A. ORD(2) 10,660
1,000 Venture Link Co. Limited ORD 101,099
6,790 Vivendi ORD 543,988
8,600 Tyco International Ltd. 344,538
54,542 Wharf (Holdings) Ltd. ORD 138,348
------------
3,623,769
------------
OIL REFINING -- 0.2%
2,100 BP Amoco Plc ADR 127,969
874 Total SA Cl B ORD 116,350
5,800 Utilicorp United Inc. 116,725
------------
361,044
------------
OIL SERVICES -- 0.5%
9,700 Baker Hughes Inc. 244,925
2,300 Ensco International Inc. 46,144
900 Fugro N.V. ORD 36,143
5,800 Global Marine Inc.(2) 88,812
5,100 Pride International Inc.(2) 73,312
8,200 R&B Falcon Corp. (2) 101,475
5,200 Rowan Companies, Inc.(2) 89,050
5,500 Royal Dutch Petroleum Co. New
York Shares 319,000
------------
998,861
------------
PROPERTY & CASUALTY
INSURANCE -- 1.5%
9,400 Allstate Corp. 246,162
4,100 Ambac Financial Group, Inc. 223,450
7,650 American International Group, Inc. 789,862
1,836 Axa ORD 247,746
10,400 Chubb Corp. (The) 557,050
9,900 CNA Financial Corp.(2) 386,100
2,418 Fortis (B) ORD 83,410
21,100 Horace Mann Educators Corp. 462,881
8,300 Prudential Corporation PLC ORD 136,504
------------
3,133,165
------------
PUBLISHING -- 0.4%
8,800 Banta Corp. 193,050
1,600 Central Newspapers, Inc. Cl A 60,500
6,700 Deluxe Corp. 175,456
1,700 New York Times Co. (The) Cl A 65,344
1,100 Times Mirror Co. (New) Cl A 71,019
5,500 VNU N.V. ORD 218,102
2,780 Wolters Kluwer NV ORD 83,906
------------
867,377
------------
See Notes to Financial Statements www.americancentury.com 45
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
RAILROADS -- 0.1%
4,800 CSX Corp. $ 170,700
3,900 Go-Ahead Group PLC (The) ORD 36,073
------------
206,773
------------
RESTAURANTS -- 0.6%
2,600 Brinker International, Inc.(2) 58,825
37,300 CBRL Group, Inc. 412,631
16,100 Jack in the Box Inc.(2) 339,106
16,700 J.D. Wetherspoon plc ORD 106,846
3,200 McDonald's Corp. 144,000
1,000 Skylark Co., Ltd. ORD 21,790
1,400 Tricon Global Restaurants Inc.(2) 58,100
------------
1,141,298
------------
SECURITIES & ASSET MANAGEMENT -- 0.7%
4,500 Franklin Resources, Inc. 141,469
2,324 Kempen & Company NV ORD 90,167
1,000 Merrill Lynch & Co., Inc. 80,625
7,000 Morgan Stanley Dean Witter & Co. 844,375
15,000 Nomura Securities Co., Ltd. ORD 267,962
47 Vontobel Holding AG Cl B ORD 78,609
------------
1,503,207
------------
SEMICONDUCTOR -- 5.1%
493 Aixtron AG ORD 67,746
7,800 Applied Materials, Inc.(2) 760,256
2,592 ARM Holdings plc ORD(2) 127,513
1,800 ASM Lithography Holding N.V.
New York Shares(2) 168,469
2,500 Asyst Technologies, Inc.(2) 100,156
13,400 Conexant Systems, Inc.(2) 792,694
22,200 Cypress Semiconductor Corp.(2) 604,950
2,225 Dialog Semiconductor plc ORD(2) 141,261
1,468 ELMOS Semiconductor AG
ORD(2) 42,162
5,782 Epcos AG ORD(2) 361,262
4,000 Exar Corp.(2) 195,125
3,000 Fujitsu Devices Inc. ORD 116,902
1,109 Gretag Imaging Group ORD 138,067
6,200 Integrated Device Technology,
Inc.(2) 145,894
6,600 Intel Corp. 505,725
3,400 Kopin Corp.(2) 221,425
4,000 KYOCERA CORP. ORD 483,314
7,800 Lam Research Corp.(2) 604,012
2,700 Linear Technology Corp. 191,700
9,900 Micron Technology, Inc.(2) 664,537
3,000 Mimasu Semiconductor Industry
Co., Ltd. ORD 60,512
1,900 National Semiconductor Corp.(2) 80,750
2,900 PMC-Sierra, Inc.(2) 298,791
8,400 PRI Automation, Inc.(2) 397,688
3,100 Qlogic Corp.(2) 350,591
1,791 Samsung Electronics ORD 370,791
Shares Value
--------------------------------------------------------------------------------
1,500 Shinkawa Ltd. ORD $ 48,734
3,000 STMicroelectronics N.V. New York
Shares 374,625
600 Techno Quartz Inc. ORD(2) 17,727
13,200 Texas Instruments Inc. 1,268,025
11,000 Venture Manufacturing
(Singapore) Ltd. ORD 111,243
7,500 Xilinx, Inc.(2) 671,016
------------
10,483,663
------------
SPECIALTY STORES -- 2.0%
1,300 Best Buy Co., Inc.(2) 81,250
8,141 Buffetti SpA ORD 73,673
1,698 Carrefour SA ORD 296,031
5,700 CVS Corp. 226,219
200 Don Quijote Co., Ltd. ORD 49,274
1,500 Douglas Holding AG ORD 64,471
600 Doutor Coffee Co., Ltd. ORD 64,193
394 Fancl Corp. ORD 139,996
2,065 Folli-Follie Abee ORD 100,347
3,300 Fred's, Inc. 43,106
14,800 Hennes & Mauritz AB Cl B ORD 469,742
2,200 Homac Corp. ORD 64,350
16,900 Home Depot, Inc. 1,336,156
200 Otsuka Kagu Limited ORD 62,623
1,000 Ryohin Keikaku Co. Limited ORD 236,062
10,400 Sunglass Hut International, Inc.(2) 127,075
2,400 Sunkus & Associates Inc. ORD 146,054
8,100 Tuesday Morning Corp.(2) 203,006
2,000 Yamada Denki ORD 206,125
2,400 Zale Corp.(2) 121,500
------------
4,111,253
------------
TELEPHONE -- 5.4%
8,100 AT&T Corp. 452,588
5,100 Bell Atlantic Corp. 322,894
11,600 BellSouth Corp. 535,775
22,123 British Telecommunications plc
ORD 444,773
11,275 Cable & Wireless
Communications plc ORD(2) 127,163
8,950 COLT Telecom Group plc ORD(2) 338,425
285 Dacom Corp. ORD 71,296
2,925 Energis plc ORD(2) 119,107
5,889 Fibernet Group plc ORD(2) 117,596
11,955 Global Crossing Holdings Ltd.(2) 520,416
11,500 Global TeleSystems Group, Inc.(2) 367,281
15,400 GTE Corp. 1,124,200
10 Japan Telecom Co. Ltd. ORD 392,619
2,100 KDD Corp. ORD 290,636
8,988 Kingston Communication (Hull)
PLC ORD(2) 100,580
2,158 KPNQwest N.V. ORD(2) 80,791
700 MCI WorldCom, Inc.(2) 57,881
21 Nippon Telegraph & Telephone
ORD 377,208
46 1-800-345-2021 See Notes to Financial Statements
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Shares Value
--------------------------------------------------------------------------------
6,700 NTL Inc.(2) $ 610,956
10,000 SBC Communications Inc. 519,375
13,500 Sprint Corp. 936,562
3,200 Tele Danmark A/S ORD 206,267
28,800 Telecom Italia SpA ORD 317,514
22,621 Telefonica S.A. ORD(2) 471,428
3,100 Telefonos de Mexico, S.A.
Cl L ADR 286,944
42,981 TeleWest Communications plc
ORD(2) 202,382
900 U S WEST, Inc. 55,856
11,600 UnitedGlobalCom Cl A(2) 1,208,212
2,944 United Pan-Europe
Communications NV ORD(2) 289,265
3,511 Versatel Telecom International
NV ORD(2) 99,070
3,000 Viatel, Inc.(2) 125,250
------------
11,170,310
------------
TOBACCO -- 0.2%
17,200 UST Inc. 457,950
------------
TRUCKING, SHIPPING &
AIR FREIGHT -- 0.2%
4,500 Eagle USA Airfreight, Inc.(2) 151,594
7,400 Forward Air Corp.(2) 231,712
500 United Parcel Service, Inc. Cl B 33,031
------------
416,337
------------
WIRELESS TELECOMMUNICATIONS -- 4.1%
7,400 ALLTEL Corp. 640,100
11,000 Atlantic Telecom Group
PLC ORD(2) 128,279
48,361 Cable & Wireless Optus Limited
ORD(2) 126,195
120,000 China Telecom (Hong Kong) Ltd.
ORD(2) 644,306
3,970 Egyptian Mobile Phone Network
ORD(2) 135,495
6,600 Esat Telecom Group PLC ADR(2) 429,206
9,200 Europolitan Holdings AB ORD 115,719
5,280 Mannesmann AG ORD 1,112,072
4,900 Nextel Communications, Inc.(2) 485,712
20 NTT Mobile Communications
Network, Inc. ORD 702,788
8,900 Orange plc ORD(2) 269,426
5,800 QUALCOMM Inc.(2) 2,101,231
8,600 Shin Corporations Public Co.,
Limited ORD(2) 54,680
13,031 Sonera Group Oyj ORD 538,543
1,300 Sprint PCS(2) 119,275
3,500 Vodafone AirTouch PLC ADR 165,156
46,130 Vodafone AirTouch PLC ORD 217,578
4,000 VoiceStream Wireless Corp.(2) 369,125
------------
8,354,886
------------
TOTAL COMMON STOCKS 163,602,056
------------
(Cost $116,792,071)
Shares/Principal Amount Value
--------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.6%
DEPARTMENT STORES(1)
192 Shinsegae Department Store Co.
Rights ORD(2) $ 7,403
------------
ENERGY RESERVES & PRODUCTION -- 0.1%
1,170,000 Petroleo Brasileiro S.A. ORD 236,373
------------
FINANCIAL SERVICES -- 0.4%
3,031 Marschollek, Lautenschlaeger und
Partner AG ORD 879,693
------------
MINING & METALS(1)
16,000 Usinas Siderurgicas de Minas
Gerais S.A. Cl A ORD 67,728
------------
MOTOR VEHICLES & PARTS -- 0.1%
50 Porsche AG ORD 134,283
------------
SPECIALTY STORES(1)
200 Fielmann AG ORD 6,268
------------
TOTAL PREFERRED STOCKS 1,331,748
------------
(Cost $462,205)
U.S. TREASURY SECURITIES -- 1.0%
$ 800,000 U.S. Treasury Notes, 5.50%,
3/31/00 800,129
175,000 U.S. Treasury Notes, 5.75%,
8/15/03 172,977
200,000 U.S. Treasury Notes, 5.50%,
5/15/09 190,363
100,000 U.S. Treasury Notes, 6.00%,
8/15/09 98,761
300,000 U.S. Treasury Bonds, 6.125%,
11/15/27 285,946
200,000 U.S. Treasury Bonds, 5.25%,
11/15/28 168,933
200,000 U.S. Treasury Bonds, 5.25%,
2/15/29 169,750
100,000 U.S. Treasury Bonds, 6.125%,
8/15/29 98,045
------------
TOTAL U.S. TREASURY SECURITIES 1,984,904
------------
(Cost $2,032,226)
U.S. GOVERNMENT AGENCY SECURITIES -- 0.7%
500,000 FNMA, 6.50%, 8/15/04 498,141
1,000,000 FNMA MTN, 6.23%, 7/21/08 934,636
------------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES 1,432,777
------------
(Cost $1,498,930)
See Notes to Financial Statements www.americancentury.com 47
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
SOVEREIGN GOVERNMENTS & AGENCIES -- 4.8%
USD 500,000 Argentine Discount Notes,
VRN, 6.875%, 5/31/00,
resets semi-annually off
the 6-month LIBOR plus
0.8125% with no caps $ 376,250
EURO 2,200,263 Deutschland Republic,
6.00%, 9/15/03 2,321,306
EURO 1,600,000 Deutschland Republic,
Series 98, 4.125%,
7/4/08 1,495,340
CAD 240,000 Government of Canada,
5.00%, 3/15/00 162,826
JPY 200,000,000 Japan Global, Series 184,
2.90%, 12/20/05 2,124,460
DKK 1,650,000 Kingdom of Denmark,
8.00%, 3/15/06 254,250
USD 100,000 Province of Quebec,
8.80%, 4/15/03 105,608
USD 220,000 Republic of Argentina, VRN
5.94%, 10/2/00, resets
semi-annually off the
6-month LIBOR plus
0.8125% with no caps 192,225
USD 1,516,512 Republic of Brazil, 8.00%,
4/15/14 (4) 1,032,176
USD 250,000 Republic of Venezuela, VRN,
Series W-A, 7.00%,
4/25/00, resets
semi-annually off the
6-month LIBOR plus
0.8125% with no caps 175,312
GBP 375,000 U.K. Treasury Bonds, 9.00%,
10/13/08 735,649
USD 250,000 United Mexican States,
8.50%, 9/15/02 253,125
USD 750,000 United Mexican States, VRN,
6.94%, 5/4/00, resets
semi-annually off the
6-month LIBOR plus
0.8125% with no caps 681,094
USD 518,000 United Mexican States,
Value Recovery Rights,
6/30/03 --
------------
TOTAL SOVEREIGN GOVERNMENTS
& AGENCIES 9,909,621
------------
(Cost $10,333,313)
MORTGAGE-BACKED SECURITIES(5) -- 2.1%
$ 69,800 FHLMC Pool #E68523, 6.50%,
12/1/12 68,399
482,373 FHLMC Pool #E00724, 7.00%,
6/1/14 480,798
299,205 FHLMC Pool #C30257, 7.00%,
8/1/29 292,711
197,116 FNMA Pool #377181, 6.50%,
4/1/12 193,131
Principal Amount Value
--------------------------------------------------------------------------------
$ 443,898 FNMA Pool #373510, 7.50%,
3/1/27 $ 443,000
61,249 FNMA Pool #250576, 7.00%,
6/1/26 59,942
372,294 FNMA Pool #412562, 6.50%,
1/1/28 356,036
252,202 FNMA Pool #482459, 7.00%,
1/1/29 246,686
150,000 FNMA REMIC, Series 1997-58,
Class PB PAC, 6.50%,
6/18/24 144,643
49,650 GNMA Pool #397233, 9.50%,
2/20/25 52,750
20,220 GNMA Pool #392995, 8.75%,
3/15/25 21,256
94,188 GNMA Pool #416856, 7.50%,
10/15/25 94,114
273,947 GNMA Pool #398509, 6.00%,
3/15/26 254,154
108,220 GNMA Pool #372335, 7.50%,
4/15/26 108,096
63,997 GNMA Pool #402682, 7.50%,
6/15/26 63,924
254,114 GNMA Pool #457351, 7.00%,
12/15/27 248,350
349,530 GNMA Pool #436194, 6.50%,
2/15/28 332,527
260,940 GNMA Pool #403770, 6.50%,
3/15/28 248,246
568,187 GNMA Pool #466804, 6.50%,
4/15/28 540,549
------------
TOTAL MORTGAGE-BACKED SECURITIES 4,249,312
------------
(Cost $4,362,104)
ASSET-BACKED SECURITIES(5) -- 0.7%
300,000 CIT RV Trust, Series 1998 A, Class A4 SEQ, 6.09%,
2/15/12 294,985
100,000 Comed Transitional Funding Trust,
Series 1998-1, Class A6 SEQ,
5.63%, 6/25/09 93,686
300,000 GMAC Commercial Mortgage
Securities Inc., Series 1999 C1,
Class A2 SEQ, 6.18%,
5/15/33 277,298
200,000 Money Store (The) Home Equity
Trust, Series 1997 C, Class
AF6 SEQ, 6.67%, 2/15/25 198,351
93,895 Nationslink Funding Corp.,
Series 1998-2, Class A1
SEQ, 6.00%,
11/20/07 89,889
200,000 Nationslink Funding Corp.,
Series 1999-1, Class A2
SEQ, 6.32%,
11/20/08 189,237
183,801 Morgan Stanley Capital I,
Series 1998 WF1, Class
A1 SEQ,
6.25%, 7/15/07 179,570
48 1-800-345-2021 See Notes to Financial Statements
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
$ 20,413 Textron Financial Corp.
Receivables Trust, Series
1997 A, Class A, 6.05%,
3/16/09 (Acquired 9/18/97,
Cost $20,386)(3) $ 20,359
------------
TOTAL ASSET-BACKED SECURITIES 1,343,375
------------
(Cost $1,405,226)
CORPORATE BONDS -- 6.1%
AIRLINES -- 0.1%
150,000 Continental Airlines, Inc., 8.00%,
12/15/05 138,000
150,000 United Air Lines, 9.00%,
12/15/03 155,963
------------
293,963
------------
BANKS -- 0.4%
150,000 Banco Santander Central
Hispano Issuance, Ltd., 7.625%,
11/3/09 151,281
300,000 Citicorp Inc., 7.125%, 5/15/06 297,320
400,000 Wells Fargo & Co. MTN, Series J,
VRN, 5.41%, 12/10/99, resets
quarterly off the 3-month
LIBOR minus 0.11% with no
caps 399,789
------------
848,390
------------
CHEMICALS -- 0.2%
150,000 du Pont (E.I.) de Nemours & Co.,
6.875%, 10/15/09 147,930
250,000 United Industries Corp., Series B,
9.875%, 4/1/09 (Acquired
8/16/99, Cost $220,000)(3) 226,250
------------
374,180
------------
DEFENSE/AEROSPACE(1)
GBP 2,248 British Aerospace PLC, 7.45%,
11/30/03 3,528
------------
DEPARTMENT STORES(1)
$ 100,000 Saks Inc., 8.25%, 11/15/08 96,336
------------
ELECTRICAL EQUIPMENT -- 0.6%
250,000 DII Group, Inc., 8.50%, 9/15/07
(Acquired 9/17/97, Cost
$250,000)(3) 247,500
100,000 Hutchison Whampoa Financial,
Series B, 7.45%, 8/1/17
(Acquired 11/19/99, Cost
$91,371)(3) 90,977
250,000 Qwest Communications
International Inc., Series B,
6.99%, 2/1/03(6) 192,500
550,000 Qwest Communications
International Inc., Series B,
7.50%, 11/1/08 543,291
250,000 Trench Electric & Trench Inc.,
10.25%, 12/15/07 196,250
------------
1,270,518
------------
Principal Amount Value
--------------------------------------------------------------------------------
ELECTRICAL UTILITIES -- 0.1%
$ 100,000 PG&E Corp., 6.25%, 3/1/04 $ 96,918
200,000 Southern Investments UK, 6.80%,
12/1/06 189,990
------------
286,908
------------
ENERGY RESERVES & PRODUCTION -- 0.8%
250,000 Belco Oil & Gas Corp., Series B,
10.50%, 4/1/06 256,250
500,000 Ocean Energy, Inc., 9.75%,
10/1/06 550,000
525,000 Oryx Energy Co., 8.375%,
7/15/04 545,056
200,000 Triton Energy Ltd., 8.75%,
4/15/02 201,250
------------
1,552,556
------------
ENVIRONMENTAL SERVICES -- 0.1%
250,000 Allied Waste Industries, Inc.,
10.00%, 8/1/09 (Acquired
8/19/99, Cost $243,438)(3) 228,125
------------
FINANCIAL SERVICES -- 0.6%
500,000 Abbey National Treasury Services
PLC, VRN, 6.15%,
1/24/00, resets quarterly
off the 3-month LIBOR
minus 0.07% with no
caps 499,721
110,000 Ford Motor Credit Co., 6.85%,
8/15/00 110,331
200,000 Ford Motor Credit Co., 7.375%,
10/28/09 201,304
400,000 Goldman Sachs Group Inc. MTN,
Series A, VRN, 5.54%,
12/23/99, resets quarterly off
the 3-month LIBOR plus
0.03% with no caps 400,074
------------
1,211,430
------------
FOOD & BEVERAGE -- 0.2%
200,000 Pepsi Bottling Group Inc., 5.625%,
2/17/09 (Acquired 2/3/99,
Cost $199,134)(3) 179,421
150,000 Pepsi Bottling Group Inc., Series
B, 7.00%, 3/1/29 (Acquired
3/3/99, Cost $148,980)(3) 138,160
------------
317,581
------------
FOREST PRODUCTS & PAPER -- 0.1%
100,000 Abitibi-Consolidated Inc., 8.50%,
8/1/29 97,865
150,000 Fort James Corp., 6.625%,
9/15/04 144,783
------------
242,648
------------
HEAVY ELECTRICAL EQUIPMENT -- 0.2%
350,000 Anixter International Inc., 8.00%,
9/15/03 349,933
------------
HOTELS -- 0.1%
250,000 Mandalay Resort Group, 7.625%,
7/15/13 215,625
------------
See Notes to Financial Statements www.americancentury.com 49
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
INDUSTRIAL PARTS(1)
$ 100,000 Petroleum Geo-Services ASA,
7.125%, 3/30/28 $ 89,317
------------
INDUSTRIAL SERVICES -- 0.1%
250,000 United Rentals, Inc., Series B,
9.25%, 1/15/09 235,000
------------
INFORMATION SERVICES -- 0.1%
250,000 PSINet Inc., Series B, 10.00%,
2/15/05 248,750
------------
LIFE AND HEALTH INSURANCE -- 0.2%
100,000 Aetna Services, Inc., 6.75%,
8/15/01 99,639
200,000 Conseco Inc., 6.40%, 6/15/01 194,986
------------
294,625
------------
MEDIA -- 0.6%
250,000 AMFM Inc., 8.00%, 11/1/08 250,625
500,000 Charter Communications Holdings
LLC, 8.625%, 4/1/09
(Acquired 3/12/99, Cost
$498,475)(3) 474,375
150,000 TCI Communications, Inc., 8.75%,
8/1/15 166,345
100,000 Tele-Communications Inc., 8.25%,
1/15/03 103,857
125,000 Time Warner Inc., 8.11%,
8/15/06 130,068
------------
1,125,270
------------
MEDICAL PROVIDERS & SERVICES -- 0.3%
500,000 Tenet Healthcare Corp., 7.875%,
1/15/03 484,533
------------
MINING & METALS -- 0.1%
150,000 Owens-Illinois Inc., 7.15%,
5/15/05 140,067
------------
MOTOR VEHICLES & PARTS -- 0.2%
150,000 Lear Corp., 7.96%, 5/15/05
(Acquired 5/13/99, Cost
$150,000)(3) 145,875
250,000 Sonic Automotive, Inc., Series B,
11.00%, 8/1/08 243,125
------------
389,000
------------
OFFICE -- 0.1%
275,000 Spieker Properties, Inc., 6.80%,
12/15/01 272,485
------------
OIL REFINING -- 0.1%
100,000 Enron Corp., 6.625%, 11/15/05 96,179
200,000 USX Corp., 6.65%, 2/1/06 190,385
------------
286,564
------------
OIL SERVICES -- 0.1%
250,000 RBF Finance Co., 11.375%,
3/15/09 268,438
------------
Principal Amount Value
--------------------------------------------------------------------------------
TELEPHONE -- 0.2%
$ 250,000 Global Crossing Holdings Ltd.,
9.625%, 5/15/08 $ 250,312
150,000 GTE North Inc., Series H, 5.65%,
11/15/08 135,122
100,000 MCI WorldCom, Inc., 7.55%,
4/1/04 102,158
------------
487,592
------------
THRIFTS -- 0.2%
500,000 Bay View Capital Corp., 9.125%,
8/15/02 426,250
------------
WIRELESS TELECOMMUNICATIONS -- 0.3%
250,000 AT&T Canada Inc., 7.76%,
6/15/08(6) 195,000
250,000 Nextel Communications, 9.375%,
11/15/09 (Acquired 11/5/99,
Cost $248,005)(3) 248,438
150,000 360 Communications Co.,
7.125%, 3/1/03 149,998
------------
593,436
------------
TOTAL CORPORATE BONDS 12,633,048
------------
(Cost $12,938,166)
COMMERCIAL PAPER(7) -- 2.5%
CREDIT CARD & TRADE RECEIVABLES -- 0.4%
400,000 Dakota Certificates (Citibank),
5.86%, 1/10/00 (Acquired
9/8/99, Cost $391,926)(3) 397,335
500,000 WCP Funding Inc., 5.90%,
2/11/00 (Acquired 11/22/99,
Cost $493,363)(3) 494,077
------------
891,412
------------
ELECTRICAL UTILITIES -- 0.2%
500,000 National Rural Utilities
Cooperative Finance Corp.,
5.80%, 2/25/00 492,953
------------
ENERGY -- 0.2%
400,000 Motiva Enterprises LLC, 5.76%,
2/1/00 (Acquired 9/8/99,
Cost $390,656)(3) 395,906
------------
ENERGY RESERVES & PRODUCTION -- 0.2%
500,000 Sand Dollar Funding LLC, 5.90%,
2/11/00 (Acquired 11/22/99,
Cost $493,363)(3) 494,077
------------
FINANCIAL SERVICES -- 1.1%
400,000 Falcon Asset Securities Corp.,
5.90%, 1/18/00 (Acquired
9/23/99, Cost $392,330)(3) 396,815
100,000 General Electric Capital Corp.,
5.82%, 3/14/00 98,301
265,000 General Electric Capital Corp.,
5.82%, 3/3/00 260,967
50 1-800-345-2021 See Notes to Financial Statements
Strategic Aggressive--Schedule of Investments
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
Principal Amount Value
--------------------------------------------------------------------------------
$ 400,000 Marsh USA Inc., 5.53%, 2/14/00
(Acquired 7/30/99, Cost
$387,773)(3) $ 395,069
375,000 Quincy Capital Corp., 5.40%,
12/17/99 (Acquired 11/4/99,
Cost $372,638)(3) 374,017
402,000 Receivables Capital Corp., 5.93%,
2/18/00 (Acquired 11/5/99,
Cost $395,047)(3) 396,786
400,000 Transamerica Asset Funding Corp.,
5.82%, 2/10/00 (Acquired
8/17/99, Cost $388,554)(3) 395,326
------------
2,317,281
------------
INFORMATION SERVICES -- 0.2%
320,000 Yale University, 5.76%, 2/14/00 316,055
------------
SEMICONDUCTOR -- 0.2%
300,000 Invensys plc, 5.40%, 12/6/99
(Acquired 11/4/99, Cost
$298,605)(3) 299,719
------------
TOTAL COMMERCIAL PAPER 5,207,403
------------
(Cost $5,208,492)
CERTIFICATES OF DEPOSIT -- 0.6%
400,000 Chase Manhattan Bank N.A.,
5.61%, 2/3/00 399,708
400,000 U.S. Bank, NA Minnesota, 5.41%,
12/14/99 399,965
Principal Amount Value
--------------------------------------------------------------------------------
$ 400,000 Westdeutsche Landesbank,
6.03%, 1/5/00 $ 400,039
------------
TOTAL CERTIFICATES OF DEPOSIT 1,199,712
------------
(Cost $1,200,000)
TEMPORARY CASH INVESTMENTS -- 1.4%
Repurchase Agreement, BA Security Services,
Inc., (U.S. Treasury obligations), in a joint
trading account at 5.55%, dated 11/30/99,
due 12/1/99 (Delivery value $2,800,432) 2,800,000
------------
(Cost $2,800,000)
TOTAL INVESTMENT SECURITIES -- 100.0% $205,693,956
============
(Cost $159,032,733)
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Contracts Settlement Unrealized
to Sell Date Value Gain (Loss)
-------------------------------------------------------------------------------
1,009,916 EURO 12/30/99 $1,020,231 $1,975
240,261,720 JPY 12/30/99 2,370,442 (43,903)
-------------------------------------
$3,390,673 $(41,928)
=====================================
(Value on Settlement Date $3,348,745)
Forward foreign currency exchange contracts are designed to protect the fund's
foreign investments against declines in foreign currencies (also known as
hedging). The contracts are called "forward" because they allow the
fund to exchange a foreign currency for U.S. dollars on a specific date in the
future--and at a prearranged exchange rate.
NOTES TO SCHEDULE OF INVESTMENTS
ADR = American Depositary Receipt
CAD = Canadian Dollar
DKK = Danish Krone
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
GBP = British Pound
GDR = Global Depositary Receipt
GNMA = Government National Mortgage Association
JPY = Japanese Yen
LIBOR = London Interbank Offered Rate
MTN = Medium Term Note
ORD = Foreign Ordinary Share
USD = U.S. Dollar
VRN = Variable Rate Note. Interest reset date is indicated and used in
calculating the weighted average portfolio maturity. Rate shown is effective
November 30, 1999.
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.
(1) Industry is less than 0.05% of total investment securities.
(2) Non-income producing.
(3) 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 November 30,
1999, was $6,119,377 which represented 3.0% of net assets.
(4) Coupon payments may consist of a combination of cash and additional
securities.
(5) Final maturity indicated. Expected remaining maturity used for purposes of
calculating the weighted average portfolio maturity.
(6) Step-coupon security. Yield to maturity at purchase is indicated. These
securities become interest bearing at a predetermined rate and future date
and are purchased at a substantial discount from their value at maturity.
(7) The rates for commercial paper are the yield to maturity at purchase.
See Notes to Financial Statements www.americancentury.com 51
Statements 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 liabilities) 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).
STRATEGIC STRATEGIC STRATEGIC
ALLOCATION: ALLOCATION: ALLOCATION:
NOVEMBER 30, 1999 CONSERVATIVE MODERATE AGGRESSIVE
ASSETS
Investment securities, at value
(identified cost of $158,871,933,
$333,927,187, and $159,032,733,
respectively) (Note 3) .................... $174,847,693 $393,067,769 $205,693,956
Foreign currency holdings, at value
(identified cost of $16,701,
$48,946, and $88,872, respectively) ....... 16,701 48,942 88,709
Cash ........................................ 227,097 -- 2,707
Receivable for investments sold ............. 101,811 516,274 329,497
Receivable for forward foreign
currency exchange contracts ............... 981 3,541 1,975
Dividends and interest receivable ........... 1,153,431 1,818,196 797,055
------------ ------------ ------------
176,347,714 395,454,722 206,913,899
------------ ------------ ------------
LIABILITIES
Disbursements in excess
of demand deposit cash .................... -- 767,647 --
Payable for investments purchased ........... 217,602 2,682,412 418,611
Payable for forward foreign
currency exchange contracts ............... 23,873 78,798 43,903
Accrued management fees (Note 2) ............ 143,498 348,363 197,520
Distribution fees payable (Note 2) .......... 1,810 3,226 2,704
Service fees payable (Note 2) ............... 1,810 3,226 2,704
Payable for directors' fees and expenses .... 88 191 104
------------ ------------ ------------
388,681 3,883,863 665,546
------------ ------------ ------------
Net Assets .................................. $175,959,033 $391,570,859 $206,248,353
============ ============ ============
NET ASSETS CONSIST OF:
Capital (par value and paid in surplus) ..... $155,382,376 $324,985,760 $150,054,808
Undistributed net investment income ......... 891,807 1,320,088 2,032,206
Accumulated undistributed net
realized gain from investment
and foreign currency transactions ......... 3,733,146 6,204,772 7,542,585
Net unrealized appreciation on
investments and translation
of assets and liabilities in
foreign currencies (Note 3) ............... 15,951,704 59,060,239 46,618,754
------------ ------------ ------------
$175,959,033 $391,570,859 $206,248,353
============ ============ ============
Investor Class, $0.01 Par Value
Net assets .................................. $167,083,365 $375,592,318 $192,831,122
Shares outstanding .......................... 29,338,612 54,517,550 24,387,249
Net asset value per share ................... $ 5.69 $ 6.89 $ 7.91
Advisor Class, $0.01 Par Value
Net assets .................................. $ 8,875,668 $ 15,978,541 $ 13,417,231
Shares outstanding .......................... 1,558,999 2,320,706 1,700,771
Net asset value per share ................... $ 5.69 $ 6.89 $ 7.89
52 1-800-345-2021 See Notes to Financial Statements
Statements 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 dividend and interest income, fees
and expenses, and investment gains or losses.
STRATEGIC STRATEGIC STRATEGIC
ALLOCATION: ALLOCATION: ALLOCATION:
YEAR ENDED NOVEMBER 30, 1999 CONSERVATIVE MODERATE AGGRESSIVE
INVESTMENT INCOME
Income:
Interest ............................ $ 6,362,621 $ 7,435,461 $ 2,485,383
Dividends (net of foreign taxes
withheld of $25,731, $70,571,
and $49,617, respectively) ........ 1,200,534 2,483,322 1,444,004
------------ ------------ ------------
7,563,155 9,918,783 3,929,387
------------ ------------ ------------
Expenses (Note 2):
Management fees ..................... 1,871,124 3,571,587 2,093,682
Distribution fees -- Advisor Class .. 17,359 37,100 28,944
Service fees -- Advisor Class ....... 17,359 37,100 28,944
Directors' fees and expenses ........ 1,664 2,889 1,626
------------ ------------ ------------
1,907,506 3,648,676 2,153,196
------------ ------------ ------------
Net investment income ............... 5,655,649 6,270,107 1,776,191
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY (NOTE 3)
Net realized gain (loss) on:
Investments ......................... 5,103,208 8,605,831 9,147,680
Foreign currency transactions ....... 13,889 (57,592) (28,588)
------------ ------------ ------------
5,117,097 8,548,239 9,119,092
------------ ------------ ------------
Change in net unrealized
appreciation (depreciation) on:
Investments ......................... 4,555,187 37,226,685 30,265,978
Translation of assets and liabilities
in foreign currencies ............. (29,650) (93,430) (51,839)
------------ ------------ ------------
4,525,537 37,133,255 30,214,139
------------ ------------ ------------
Net realized and unrealized gain on
investments and foreign currency .... 9,642,634 45,681,494 39,333,231
------------ ------------ ------------
Net Increase in Net Assets
Resulting from Operations ......... $ 15,298,283 $ 51,951,601 $ 41,109,422
============ ============ ============
See Notes to Financial Statements www.americancentury.com 53
Statements 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
and capital gain distributions, and shareholder investments and redemptions.
YEARS ENDED NOVEMBER 30, 1999 AND NOVEMBER 30, 1998
STRATEGIC ALLOCATION: STRATEGIC ALLOCATION: STRATEGIC ALLOCATION:
Increase (Decrease) CONSERVATIVE MODERATE AGGRESSIVE
in Net Assets 1999 1998 1999 1998 1999 1998
OPERATIONS
Net investment income .......... $ 5,655,649 $ 5,876,472 $ 6,270,107 $ 6,006,752 $ 1,776,191 $ 2,075,131
Net realized gain on
investments and foreign
currency transactions ........ 5,117,097 4,808,349 8,548,239 7,826,734 9,119,092 3,332,508
Change in net unrealized
appreciation on investments
and translation of
assets and liabilities in
foreign currencies ........... 4,525,537 4,669,595 37,133,255 10,098,992 30,214,139 6,656,675
------------- ------------- ------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations .... 15,298,283 15,354,416 51,951,601 23,932,478 41,109,422 12,064,314
------------- ------------- ------------- ------------- ------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS
From net investment income:
Investor Class ............... (5,376,570) (5,800,329) (5,791,290) (5,873,919) (1,746,451) (1,584,225)
Advisor Class ................ (185,153) (187,045) (245,892) (276,208) (97,114) (95,179)
From net realized gains on
investment transactions:
Investor Class ............... (5,992,784) (7,295,786) (9,046,771) (6,635,893) (3,801,607) (3,703,277)
Advisor Class ................ (213,170) (204,754) (452,461) (295,112) (264,507) (268,899)
------------- ------------- ------------- ------------- ------------- -------------
Decrease in net assets
from distributions ............. (11,767,677) (13,487,914) (15,536,414) (13,081,132) (5,909,679) (5,651,580)
------------- ------------- ------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS
(NOTE 4)
Net increase (decrease) in
net assets from capital
share transactions ........... (15,137,581) 24,713,711 80,183,989 54,162,988 15,695,068 31,349,164
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) in
net assets ................... (11,606,975) 26,580,213 116,599,176 65,014,334 50,894,811 37,761,898
NET ASSETS
Beginning of period ............ 187,566,008 160,985,795 274,971,683 209,957,349 155,353,542 117,591,644
------------- ------------- ------------- ------------- ------------- -------------
End of period .................. $ 175,959,033 $ 187,566,008 $ 391,570,859 $ 274,971,683 $ 206,248,353 $ 155,353,542
============= ============= ============= ============= ============= =============
Undistributed net
investment income ............ $ 891,807 $ 862,173 $ 1,320,088 $ 1,114,240 $ 2,032,206 $ 1,938,974
============= ============= ============= ============= ============= =============
54 1-800-345-2021 See Notes to Financial Statements
Notes to Financial Statements
--------------------------------------------------------------------------------
NOVEMBER 30, 1999
--------------------------------------------------------------------------------
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION -- American Century Strategic Asset Allocations, Inc. (the
corporation) is registered under the Investment Company Act of 1940 (the 1940
Act) as an open-end management investment company. Strategic Allocation:
Conservative Fund, Strategic Allocation: Moderate Fund and Strategic Allocation:
Aggressive Fund (the funds) are three of the funds currently issued by the
corporation. The funds are diversified under the 1940 Act. The funds' investment
objective is to provide as high a level of total return (capital appreciation
plus dividend and interest income) as is consistent with each fund's risk
profile. The funds seek to achieve this by diversifying investments among three
asset classes - equity securities, bonds and cash equivalent instruments, the
mix of which will depend on the risk profile of each fund. 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 funds are 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 each 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 -- Portfolio securities traded primarily on a principal
securities exchange are valued at the last reported sales price, or the mean of
the latest bid and asked prices where no last sales price is available.
Securities traded over-the-counter are valued at the mean of the latest bid and
asked prices or, in the case of certain foreign securities, at the last reported
sales price, depending on local convention or regulation. Debt securities not
traded on a principal securities exchange are valued through a commercial
pricing service or at the mean of the most recent bid and asked prices. When
valuations are not readily available, securities are valued at fair value as
determined in accordance with procedures adopted by the Board of Directors.
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 -- Dividend income less foreign taxes withheld (if any) is
recorded as of the ex-dividend date. Interest income is recorded on the accrual
basis and includes accretion of discounts and amortization of premiums.
FOREIGN CURRENCY TRANSACTIONS -- All assets and liabilities initially
expressed in foreign currencies are translated into U.S. dollars at prevailing
exchange rates at period end. Purchases and sales of investment securities,
dividend and interest income, and certain expenses are translated at the rates
of exchange prevailing on the respective dates of such transactions. For assets
and liabilities, other than investments in securities, net realized and
unrealized gains and losses from foreign currency translations arise from
changes in currency exchange rates.
Net realized and unrealized foreign currency exchange gains or losses
occurring during the holding period of investment securities are a component of
realized gain (loss) on investments and unrealized appreciation (depreciation)
on investments, respectively.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The funds may enter into
forward foreign currency exchange contracts to facilitate transactions of
securities denominated in a foreign currency or to hedge the fund's exposure to
foreign currency exchange rate fluctuations. The net U.S. dollar value of
foreign currency underlying all contractual commitments held by the funds and
the resulting unrealized appreciation or depreciation are determined daily using
prevailing exchange rates. The funds bear the risk of an unfavorable change in
the foreign currency exchange rate underlying the forward contract.
Additionally, losses may arise if the counterparties do not perform under the
contract terms.
REPURCHASE AGREEMENTS -- The funds may enter into repurchase agreements with
institutions that the funds' investment manager, American Century Investment
Management, Inc. (ACIM), has determined are creditworthy pursuant to criteria
adopted by the Board of Directors. Each repurchase agreement is recorded at
cost. The funds require that the collateral, represented by securities, received
in a repurchase transaction be transferred to the custodian in a manner
sufficient to enable the funds to obtain those securities in the event of a
default under the repurchase agreement. ACIM monitors, on a daily basis, the
securities transferred to ensure the value, including accrued interest, of the
securities under each repurchase agreement is equal to or greater than amounts
owed to the funds under each repurchase agreement.
JOINT TRADING ACCOUNT -- Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other registered
investment companies having management agreements with ACIM, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by U.S.
Treasury or Agency obligations.
INCOME TAX STATUS -- It is the funds' policy to distribute all net
investment income and net realized gains to shareholders and to otherwise
qualify as a regulated investment company under provisions of the Internal
Revenue Code. Accordingly, no provision has been made for federal or state
income taxes.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are recorded
on the ex-dividend date. Distributions from net investment income are declared
and paid quarterly, with the exception of those for Strategic Allocation:
Aggressive, which are declared and paid annually. Distributions from net
realized gains are declared and paid annually, usually in December, but the
funds may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code, in all events in a
manner consistent with provisions of the Investment Company Act.
On December 17, 1999, Strategic Allocation: Conservative, Strategic
Allocation: Moderate and Strategic Allocation: Aggressive declared and paid a
per-share distribution from net investment income to shareholders of record on
that date of $0.0430, $0.0394, and $0.0779 for the Investor Class, respectively,
and $0.0402, $0.0359, and $0.0602 for the Advisor Class respectively. Also, on
www.americancentury.com 55
Notes to Financial Statements
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
December 17, 1999, the funds declared and paid a per-share distribution from
net realized gains on investments to shareholders of record on that date of
$0.1814, $0.1552, and $0.3110 for both classes, respectively.
The character of distributions made during the year from net investment
income or net realized gains may differ from their ultimate characterization for
federal income tax purposes. These differences reflect the differing character
of certain income items and net realized gains and losses for financial
statement and tax purposes and may result in reclassification among certain
capital accounts.
ADDITIONAL INFORMATION -- Funds Distributor, Inc. (FDI) is the corporation's
distributor. Certain officers of FDI are also officers of the corporation.
--------------------------------------------------------------------------------
2. TRANSACTIONS WITH RELATED PARTIES
The corporation has entered into a Management Agreement with ACIM, under
which ACIM provides each 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 funds, except brokerage commissions, taxes,
interest, expenses of those directors 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 computed daily and paid
monthly based on each class's average daily closing net assets during the
previous month. The annual management fee for each class of the funds is as
follows:
STRATEGIC ALLOCATION: STRATEGIC ALLOCATION: STRATEGIC ALLOCATION:
CONSERVATIVE MODERATE AGGRESSIVE
INVESTOR ADVISOR INVESTOR ADVISOR INVESTOR ADVISOR
FUND AVERAGE NET ASSETS
First $1 billion ............ 1.00% 0.75% 1.10% 0.85% 1.20% 0.95%
Over $1 billion ............. 0.90% 0.65% 1.00% 0.75% 1.10% 0.85%
The Board of Directors 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 funds will pay ACIM an annual distribution fee equal
to 0.25% and 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 funds. 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 year
ended November 30, 1999, were $34,718 in Strategic Allocation: Conservative,
$74,200 in Strategic Allocation: Moderate, and $57,888 in Strategic Allocation:
Aggressive.
Certain officers and directors of the corporation are also officers and/or
directors, and, as a group, controlling stockholders of American Century
Companies, Inc., the parent of the corporation's investment manager, ACIM, and
the corporation's transfer agent, American Century Services Corporation.
56 1-800-345-2021
Notes to Financial Statements
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
--------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS
Investment transactions, excluding short-term investments, for the year
ended November 30, 1999, were as follows:
STRATEGIC STRATEGIC STRATEGIC
ALLOCATION: ALLOCATION: ALLOCATION:
CONSERVATIVE MODERATE AGGRESSIVE
PURCHASES
Investment Securities other
than U.S. Government
& Agency Obligations .. $136,119,597 $336,536,836 $191,054,681
U.S. Government &
Agency Obligations ........ 35,432,238 40,493,986 5,398,568
PROCEEDS FROM SALES
Investment Securities other
than U.S. Government
& Agency Obligations .. $150,782,921 $283,458,933 $181,417,370
U.S. Government &
Agency Obligations ........ 38,110,313 25,921,868 6,350,939
On November 30, 1999, the composition of unrealized appreciation and
depreciation of investment securities based on the aggregate cost of investments
for federal income tax purposes was as follows:
STRATEGIC STRATEGIC STRATEGIC
ALLOCATION: ALLOCATION: ALLOCATION:
CONSERVATIVE MODERATE AGGRESSIVE
Appreciation ................ $21,452,114 $69,513,768 $51,373,566
Depreciation ................ (7,400,970) (14,347,205) (6,567,011)
--------------- --------------- ---------------
Net ......................... $14,051,144 $55,166,563 $44,806,555
=============== =============== ===============
Federal Tax Cost ............ $160,796,549 $337,901,206 $160,887,401
=============== =============== ===============
www.americancentury.com 57
Notes to Financial Statements
--------------------------------------------------------------------------------
(Continued)
NOVEMBER 30, 1999
--------------------------------------------------------------------------------
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the funds were as follows:
STRATEGIC ALLOCATION: STRATEGIC ALLOCATION: STRATEGIC ALLOCATION:
CONSERVATIVE MODERATE AGGRESSIVE
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
INVESTOR CLASS
Authorized Shares .......... 100,000,000 100,000,000 100,000,000
============= ============= =============
Year ended
November 30, 1999
Sold ....................... 13,801,866 $ 76,375,230 27,735,521 $ 177,453,631 11,259,728 $ 78,476,409
Issued in reinvestment
of distributions ......... 1,930,163 10,456,958 2,409,483 14,722,174 866,756 5,527,759
Redeemed ................... (18,765,683) (104,022,069) (17,697,620) (113,157,009) (9,933,120) (69,207,390)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) .... (3,033,654) $ (17,189,881) 12,447,384 $ 79,018,796 2,193,364 $ 14,796,778
============= ============= ============= ============= ============= =============
Year ended
November 30, 1998
Sold ....................... 14,341,532 $ 78,794,970 23,620,687 $ 143,489,927 12,549,015 $ 80,160,388
Issued in reinvestment
of distributions ......... 2,221,536 11,843,897 2,116,707 12,429,433 895,817 5,276,602
Redeemed ................... (12,448,203) (68,202,816) (17,345,468) (105,655,521) (8,778,771) (55,922,680)
------------- ------------- ------------- ------------- ------------- -------------
Net increase ............... 4,114,865 $ 22,436,051 8,391,926 $ 50,263,839 4,666,061 $ 29,514,310
============= ============= ============= ============= ============= =============
ADVISOR CLASS
Authorized Shares .......... 50,000,000 50,000,000 50,000,000
============= ============= =============
Year ended
November 30, 1999
Sold ....................... 925,965 $ 5,066,512 1,326,437 $ 8,429,197 884,076 $ 6,136,284
Issued in reinvestment
of distributions ......... 73,462 398,320 (1,251,844) 697,838 56,668 361,429
Redeemed ................... (619,470) (3,412,532) 114,335 (7,961,842) (807,547) (5,599,423)
------------- ------------- ------------- ------------- ------------- -------------
Net increase ............... 379,957 $ 2,052,300 188,928 $ 1,165,193 133,197 $ 898,290
============= ============= ============= ============= ============= =============
Year ended
November 30, 1998
Sold ....................... 733,231 $ 4,045,949 1,851,968 $ 11,078,436 791,693 $ 5,187,411
Issued in reinvestment
of distributions ......... 73,283 391,794 97,244 571,210 61,708 364,076
Redeemed ................... (392,972) (2,160,083) (1,252,277) (7,750,497) (584,629) (3,716,633)
------------- ------------- ------------- ------------- ------------- -------------
Net increase ............... 413,542 $ 2,277,660 696,935 $ 3,899,149 268,772 $ 1,834,854
============= ============= ============= ============= ============= =============
--------------------------------------------------------------------------------
5. BANK LOANS
Effective December 18, 1998, the funds, along with certain other funds
managed by ACIM, entered into an unsecured $570,000,000 bank line of credit
agreement with Chase Manhattan Bank. Borrowings under the agreement bear
interest at the Federal Funds rate plus 0.40%. Effective December 21, 1999,
borrowings under the agreement bear interest at the Federal Funds rate plus
0.50%. The funds may borrow money for temporary or emergency purposes to fund
shareholder redemptions. The funds did not borrow from the line during the
period December 18, 1998 through November 30, 1999.
58 1-800-345-2021
Strategic Conservative--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
income as a percentage of average net assets), EXPENSE RATIO (operating expenses
as a percentage of average net assets), and PORTFOLIO TURNOVER (a gauge of the
fund's trading activity).
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED NOVEMBER 30 (EXCEPT AS NOTED)
Investor Class
1999 1998 1997 1996(1)
PER-SHARE DATA
Net Asset Value,
Beginning of Period .............. $5.59 $5.55 $5.26 $5.00
-------- -------- --------- ---------
Income From Investment Operations
Net Investment Income(2) ......... 0.17 0.18 0.19 0.13
Net Realized and Unrealized
Gain on Investment Transactions .. 0.28 0.31 0.36 0.22
-------- -------- --------- ---------
Total From Investment Operations . 0.45 0.49 0.55 0.35
-------- -------- --------- ---------
Distributions
From Net Investment Income ....... (0.16) (0.19) (0.17) (0.09)
From Net Realized Gain on
Investment Transactions .......... (0.19) (0.26) (0.09) --
-------- -------- --------- ---------
Total Distributions .............. (0.35) (0.45) (0.26) (0.09)
-------- -------- --------- ---------
Net Asset Value, End of Period ..... $5.69 $5.59 $5.55 $5.26
======== ======== ========= =========
Total Return(3) .................. 8.47% 9.43% 10.87% 7.02%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ............ 1.00% 1.00% 1.00% 1.01%(4)
Ratio of Net Investment Income
to Average Net Assets ............ 3.01% 3.35% 3.48% 3.67%(4)
Portfolio Turnover Rate ............ 105% 113% 124% 44%
Net Assets, End of Period
(in thousands) ...................$167,083 $180,970 $156,733 $33,110
(1) February 15, 1996 (inception) through November 30, 1996.
(2) Computed using average shares outstanding throughout the period.
(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 59
Strategic Conservative--Financial Highlights
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED NOVEMBER 30 (EXCEPT AS NOTED)
Advisor Class
1999 1998 1997 1996(1)
PER-SHARE DATA
Net Asset Value,
Beginning of Period ............... $5.59 $5.56 $5.26 $5.09
-------- --------- -------- --------
Income From Investment Operations
Net Investment Income(2) .......... 0.15 0.17 0.17 0.03
Net Realized and Unrealized Gain
on Investment Transactions ........ 0.30 0.31 0.38 0.14
-------- --------- -------- --------
Total From Investment Operations .. 0.45 0.48 0.55 0.17
-------- --------- -------- --------
Distributions
From Net Investment Income ........ (0.16) (0.19) (0.16) --
From Net Realized Gain on
Investment Transactions ........... (0.19) (0.26) (0.09) --
-------- --------- -------- --------
Total Distributions ............... (0.35) (0.45) (0.25) --
-------- --------- -------- --------
Net Asset Value, End of Period ...... $5.69 $5.59 $5.56 $5.26
======== ========= ======== ========
Total Return(3) ................... 8.32% 9.06% 10.77% 3.34%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ............. 1.25% 1.25% 1.25% 1.25%(4)
Ratio of Net Investment Income
to Average Net Assets ............. 2.76% 3.10% 3.23% 3.25%(4)
Portfolio Turnover Rate ............. 105% 113% 124% 44%
Net Assets, End of Period
(in thousands) .................... $8,876 $6,596 $4,253 $3,973
(1) October 2, 1996 (commencement of sale) through November 30, 1996.
(2) Computed using average shares outstanding throughout the period.
(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.
60 1-800-345-2021 See Notes to Financial Statements
Strategic Moderate--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
income as a percentage of average net assets), EXPENSE RATIO (operating expenses
as a percentage of average net assets), and PORTFOLIO TURNOVER (a gauge of the
fund's trading activity).
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED NOVEMBER 30 (EXCEPT AS NOTED)
Investor Class
1999 1998 1997 1996(1)
PER-SHARE DATA
Net Asset Value,
Beginning of Period ............... $6.22 $5.98 $5.42 $5.00
-------- --------- -------- ---------
Income From Investment Operations
Net Investment Income(2) .......... 0.12 0.15 0.14 0.10
Net Realized and Unrealized Gain
on Investment Transactions ........ 0.88 0.45 0.56 0.39
-------- --------- -------- ---------
Total From Investment Operations .. 1.00 0.60 0.70 0.49
-------- --------- -------- ---------
Distributions
From Net Investment Income ........ (0.12) (0.16) (0.13) (0.07)
From Net Realized Gain on
Investment Transactions ........... (0.21) (0.20) (0.01) --
-------- --------- -------- ---------
Total Distributions ............... (0.33) (0.36) (0.14) (0.07)
-------- --------- -------- ---------
Net Asset Value, End of Period ...... $6.89 $6.22 $5.98 $5.42
======== ========= ======== =========
Total Return(3) ................... 16.97% 10.32% 13.02% 9.91%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ............. 1.10% 1.10% 1.10% 1.10%(4)
Ratio of Net Investment Income
to Average Net Assets ............. 1.92% 2.38% 2.43% 2.52%(4)
Portfolio Turnover Rate ............. 107% 127% 119% 78%
Net Assets, End of Period
(in thousands) ....................$375,592 $261,721 $201,384 $57,836
(1) February 15, 1996 (inception) through November 30, 1996.
(2) Computed using average shares outstanding throughout the period.
(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 61
Strategic Moderate--Financial Highlights
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED NOVEMBER 30 (EXCEPT AS NOTED)
Advisor Class
1999 1998 1997 1996(1)
PER-SHARE DATA
Net Asset Value,
Beginning of Period ............... $6.22 $5.98 $5.42 $5.24
-------- --------- -------- --------
Income From Investment Operations
Net Investment Income(2) .......... 0.11 0.13 0.12 0.02
Net Realized and Unrealized Gain
on Investment Transactions ........ 0.88 0.45 0.56 0.16
-------- --------- -------- --------
Total From Investment Operations .. 0.99 0.58 0.68 0.18
-------- --------- -------- --------
Distributions
From Net Investment Income ........ (0.11) (0.14) (0.11) --
From Net Realized Gain on
Investment Transactions ........... (0.21) (0.20) (0.01) --
-------- --------- -------- --------
Total Distributions ............... (0.32) (0.34) (0.12) --
-------- --------- -------- --------
Net Asset Value, End of Period ...... $6.89 $6.22 $5.98 $5.42
======== ========= ======== ========
Total Return(3) ................... 16.66% 10.07% 12.72% 3.44%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ............. 1.35% 1.35% 1.35% 1.35%(4)
Ratio of Net Investment Income
to Average Net Assets ............. 1.67% 2.13% 2.18% 2.10%(4)
Portfolio Turnover Rate ............. 107% 127% 119% 78%
Net Assets, End of Period
(in thousands) .................... $15,979 $13,251 $8,573 $7,566
(1) October 2, 1996 (commencement of sale) through November 30, 1996.
(2) Computed using average shares outstanding throughout the period.
(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.
62 1-800-345-2021 See Notes to Financial Statements
Strategic Aggressive--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
income as a percentage of average net assets), EXPENSE RATIO (operating expenses
as a percentage of average net assets), and PORTFOLIO TURNOVER (a gauge of the
fund's trading activity).
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED NOVEMBER 30 (EXCEPT AS NOTED)
Investor Class
1999 1998 1997 1996(1)
PER-SHARE DATA
Net Asset Value,
Beginning of Period ............... $6.54 $6.25 $5.53 $5.00
-------- --------- -------- --------
Income From Investment Operations
Net Investment Income(2) .......... 0.07 0.10 0.09 0.07
Net Realized and Unrealized Gain
on Investment Transactions ........ 1.55 0.49 0.67 0.46
-------- --------- -------- --------
Total From Investment Operations .. 1.62 0.59 0.76 0.53
-------- --------- -------- --------
Distributions
From Net Investment Income ........ (0.08) (0.09) (0.04) --
From Net Realized Gain on
Investment Transactions ........... (0.17) (0.21) -- --
-------- --------- -------- --------
Total Distributions ............... (0.25) (0.30) (0.04) --
-------- --------- -------- --------
Net Asset Value, End of Period ...... $7.91 $6.54 $6.25 $5.53
======== ========= ======== ========
Total Return(3) ................... 25.69% 9.93% 13.84% 10.60%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ............. 1.20% 1.20% 1.20% 1.20%(4)
Ratio of Net Investment Income
to Average Net Assets ............. 1.02% 1.49% 1.58% 1.72%(4)
Portfolio Turnover Rate ............. 115% 134% 135% 64%
Net Assets, End of Period
(in thousands) ....................$192,831 $145,125 $109,497 $46,276
(1) February 15, 1996 (inception) through November 30, 1996.
(2) Computed using average shares outstanding throughout the period.
(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 63
Strategic Aggressive--Financial Highlights
--------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED NOVEMBER 30 (EXCEPT AS NOTED)
Advisor Class
1999 1998 1997 1996(1)
PER-SHARE DATA
Net Asset Value,
Beginning of Period ............... $6.52 $6.23 $5.53 $5.37
-------- --------- -------- --------
Income From Investment Operations
Net Investment Income(2) .......... 0.05 0.08 0.07 0.01
Net Realized and Unrealized Gain
on Investment Transactions ........ 1.55 0.49 0.67 0.15
-------- --------- -------- --------
Total From Investment Operations .. 1.60 0.57 0.74 0.16
-------- --------- -------- --------
Distributions
From Net Investment Income ........ (0.06) (0.07) (0.04) --
From Net Realized Gain on
Investment Transactions ........... (0.17) (0.21) -- --
-------- --------- -------- --------
Total Distributions ............... (0.23) (0.28) (0.04) --
-------- --------- -------- --------
Net Asset Value, End of Period ...... $7.89 $6.52 $6.23 $5.53
======== ========= ======== ========
Total Return(3) ................... 25.46% 9.66% 13.43% 2.98%
RATIOS/SUPPLEMENTAL DATA
Ratio of Operating Expenses
to Average Net Assets ............. 1.45% 1.45% 1.45% 1.45%(4)
Ratio of Net Investment Income
to Average Net Assets ............. 0.77% 1.24% 1.33% 1.31%(4)
Portfolio Turnover Rate ............. 115% 134% 135% 64%
Net Assets, End of Period
(in thousands) ....................$13,417 $10,228 $8,095 $5,872
(1) October 2, 1996 (commencement of sale) through November 30, 1996.
(2) Computed using average shares outstanding throughout the period.
(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.
64 1-800-345-2021 See Notes to Financial Statements
Independent Auditors' Report
--------------------------------------------------------------------------------
The Board of Directors and Shareholders,
American Century Strategic Asset Allocations, Inc:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of Strategic Allocation: Conservative
Fund, Strategic Allocation: Moderate Fund and Strategic Allocation: Aggressive
Fund, (collectively the "Funds"), comprising American Century
Strategic Asset Allocations, Inc., as of November 30, 1999, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the three years in the period then ended and for the
period February 15, 1996 (inception) through November 30, 1996. These financial
statements and the financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits 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 the 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 at November
30, 1999 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. 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 audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above and financial
highlights present fairly, in all material respects, the financial positions of
Strategic Allocation: Conservative Fund, Strategic Allocation: Moderate Fund and
Strategic Allocation: Aggressive Fund as of November 30, 1999, the results of
their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial highlights for
the respective stated periods in conformity with generally accepted accounting
principles.
Deloitte & Touche LLP
Kansas City, Missouri
January 12, 2000
www.americancentury.com 65
Share Class and Retirement Account Information
--------------------------------------------------------------------------------
SHARE CLASSES
Two classes of shares are authorized for sale by the funds: 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
is 0.25% higher than the total expense ratio of the Investor Class.
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)]
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.
66 1-800-345-2021
Background Information
--------------------------------------------------------------------------------
INVESTMENT PHILOSOPHY AND POLICIES
American Century offers 14 growth and income funds including domestic
equity, balanced, asset allocation, and specialty funds.
STRATEGIC ALLOCATION: CONSERVATIVE emphasizes bonds and money market
securities to provide regular income and principal protection. The fund also
provides the potential for moderate long-term growth by investing a portion of
its assets in stocks.
STRATEGIC ALLOCATION: MODERATE emphasizes common stocks for their long-term
growth prospects, but it maintains a sizable stake in bonds and money market
securities to provide some income and increase overall price stability.
STRATEGIC ALLOCATION: AGGRESSIVE focuses primarily on common stocks as a
source of long-term growth, but it maintains a small portion of its assets in
bonds and money market securities to provide a modest amount of income and help
cushion the share price volatility of the stock portion.
The risk designations are relative only to the three Strategic Asset
Allocation funds and do not represent comparisons with any other investment.
The funds invest in both domestic and foreign securities. International
investing involves special risks, such as political instability and currency
fluctuations.
COMPARATIVE INDICES
The indices listed below are used in the report as fund performance
comparisons. They are not investment products available for purchase.
The S&P 500 is composed of 500 large-capitalization stocks traded on
domestic exchanges. It is considered a broad measure of large-company stock
performance.
The S&P MIDCAP 400 is composed of 400 mid-capitalization stocks traded
on domestic exchanges. It is considered a broad measure of mid-sized stock
performance.
The S&P SMALLCAP 600 is composed of 600 small-capitalization stocks
traded on domestic exchanges. It is considered a broad measure of small-company
stock performance.
The S&P 500/BARRA VALUE INDEX and the S&P 500/BARRA GROWTH INDEX
are capitalization-weighted indices made up of the stocks from the S&P 500.
The value index contains firms with lower price-to-book ratios; conversely, the
growth index has firms with higher price-to-book ratios.
The LEHMAN AGGREGATE BOND INDEX reflects the combined performance of
several Lehman bond indices, including the TREASURY BOND, CORPORATE BOND, and
MORTGAGE-BACKED SECURITIES indices.
The MORGAN STANLEY EUROPE, AUSTRALASIA, FAR EAST (EAFE(reg.tm)) INDEX is a
widely followed group of stocks from 22 countries (excluding the U.S.).
The SALOMON BROTHERS NON-U.S. WORLD GOVERNMENT BOND INDEX consists of
government bonds from 17 countries (excluding the U.S.). Salomon also maintains
representative government bond indices from various regions around the world,
including EUROPE and JAPAN.
The THREE-MONTH TREASURY BILL INDEX is derived from secondary market
interest rates as published by the Federal Reserve Bank.
[right margin]
INVESTMENT TEAM LEADERS
Portfolio Managers
JEFF TYLER
BRIAN HOWELL
THE FUNDS' NEUTRAL ASSET MIXES*
CON MOD AGG
STOCKS 40% 60% 75%
BONDS 45% 30% 20%
CASH
(MONEY MARKET
SECURITIES) 15% 10% 5%
* The funds' actual asset mixes will vary from the neutral mixes based on
investment performance. Fund managers regularly review the portfolios and
rebalance the asset mixes to stay within the funds' preset operating ranges.
www.americancentury.com 67
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 pages 59-64.
STOCK PORTFOLIO STATISTICS
* NUMBER OF COMPANIES -- the number of different companies held by a fund on a
given date.
* DIVIDEND YIELD -- a percentage return calculated by dividing a company's
annual cash dividend by the current market value of the company's stock.
* PRICE/EARNINGS RATIO -- a stock value measurement calculated by dividing a
company's stock price by its earnings per share, with the result expressed as a
multiple instead of a percentage. (Earnings per share is calculated by dividing
a company's after-tax earnings by its outstanding shares.)
BOND PORTFOLIO STATISTICS
* NUMBER OF SECURITIES -- the number of different securities 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.
* AVERAGE DURATION -- another measure of the sensitivity of a fixed-income
portfolio to interest rate changes. Duration is a time-weighted average of the
interest and principal payments of the securities in a portfolio. As the
duration of a portfolio increases, so does the impact of a change in interest
rates on the value of the portfolio.
FIXED-INCOME SECURITY TYPES
* ASSET-BACKED SECURITIES -- debt securities that represent ownership in a pool
of receivables, such as credit card debt, auto loans, or mortgages.
* CORPORATE SECURITIES -- debt securities or instruments issued by corporations.
Short-term corporate securities are typically issued to raise cash and cover
current expenses in anticipation of future revenues; long-term corporate
securities are issued to finance capital expenditures, such as new plant
construction or equipment purchases.
* FOREIGN GOVERNMENT SECURITIES -- debt securities issued or guaranteed by
foreign governments or their political subdivisions. Some of these securities
are direct obligations of the issuing government; others are backed by some form
of government sponsorship.
* MORTGAGE-BACKED SECURITIES -- debt securities that represent ownership in
pools of mortgage loans. Most mortgage-backed securities are structured as
"pass-throughs"--the monthly payments of principal and interest on the
mortgages in the pool are collected by the bank that is servicing the mortgages
and are "passed through" to investors. While the payments of principal
and interest are considered secure (many are backed by government agency
guarantees), the cash flow is less certain than in other fixed-income
investments. Mortgages that are paid off early reduce future interest payments
from the pool.
* U.S. GOVERNMENT AGENCY SECURITIES --debt securities issued by U.S. government
agencies (such as the Federal Home Loan Bank and the Federal Farm Credit Bank).
Some agency securities are backed by the full faith and credit of the U.S.
government, while others are guaranteed only by the issuing agency. Government
agency securities include discount notes (maturing in one year or less) and
medium-term notes, debentures, and bonds (maturing in three months to 50 years).
* U.S. TREASURY SECURITIES -- debt securities issued by the U.S. Treasury and
backed by the direct "full faith and credit" pledge of the U.S.
government. Treasury securities include bills (maturing in one year or less),
notes (maturing in two to ten years), and bonds (maturing in more than ten
years).
68 1-800-345-2021
Glossary
--------------------------------------------------------------------------------
(Continued)
FUND CLASSIFICATIONS
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. 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.
* 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.
www.americancentury.com 69
Notes
--------------------------------------------------------------------------------
70 1-800-345-2021
Notes
--------------------------------------------------------------------------------
www.americancentury.com 71
Notes
--------------------------------------------------------------------------------
72 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 International Discovery
Giftrust(reg.tm) 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 (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 STRATEGIC ASSET ALLOCATIONS, INC.
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 BULK RATE
P.O. Box 419200 U.S. POSTAGE PAID
Kansas City, MO 64141-6200 AMERICAN CENTURY
www.americancentury.com COMPANIES
Funds Distributor, Inc.
0001 is the distributor for American Century funds
SH-ANN-19181 (c)2000 American Century Services Corporation
