FILED BY: AMERICAN CENTURY MUNICIPAL TRUST
PURSUANT TO RULE 425 UNDER THE
SECURITIES ACT OF 1933, AS AMENDED
SUBJECT COMPANY: AMERICAN CENTURY MUNICIPAL TRUST
SEC REGISTRATION STATEMENT NO. 333-140914
TALKING POINTS FOR TAX-FREE BOND SITUATION --
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There are two proposals we'd like this shareholder to vote. The first is a
proposed fee change to the Advisor Class fee structure. The second is a
combination of the Advisor Class into the Investor Class of the same fund. In
this particular shareholder's situation, it affects Tax-Free Bond.
1. HERE'S WHAT WILL HAPPEN IF PROXY IS APPROVED --
The 12b-1 fee will be decreased by .25% (25 basis points).
The unified management fee will increase by .25% (25 basis points).
Initial result (scheduled for 8/31) = no change in total expense ratio,
thus NO CHANGE TO THE FEES that are being paid by the shareholder.
Ultimate result (scheduled for 11/30) = Advisor Class of fund will combine
into Investor Class of fund, resulting in LOWER TOTAL FEES for the
shareholder.
2. QUESTION = IF THERE'S NO CHANGE TO THE ADVISOR CLASS FEE, WHY ARE WE
MAKING THESE CHANGES?
Because the initial modification will make the fee structure of our Advisor
Class shares more consistent with all our other share classes and the industry
standard. The ultimate result is driven by the lack of viability of the Advisor
Class of Tax-Free Bond. The shareholder will ultimately experience LOWER
TOTAL FEES as a shareholder of the Investor Class.
3. WILL THE CHANGES AFFECT THE SHAREHOLDER'S INVESTMENT IN THE FUND?
No, nothing will change in their investment.
4. HOW DOES THE BOARD OF TRUSTEES FOR TAX-FREE BOND RECOMMEND THAT
SHAREHOLDERS VOTE?
The Board, which includes all of the independent trustees, unanimously
recommends that shareholders vote FOR the proposals. Keep in mind that these
independent members of the Board are not employees of American Century
Investments and it's their job to oversee the funds on behalf of the
shareholders. They are the shareholders' advocate and have determined that these
proposals are in the best interest of shareholders.
5. WHY SHOULD I VOTE?
Everyone's vote makes a difference. As a shareholder, it's your right to vote on
any proxy that comes from an investment company in which you have money
invested. You are encouraged to exercise that right and vote today. If
shareholders don't vote their proxies, the fund may not receive enough votes,
which means additional costs will be incurred to solicit votes to determine the
outcome of the proposals.
6. HOW DO I CAST MY VOTE?
The easiest and quickest way is to vote on-line or by phone. To vote on the
internet, go to www.proxyweb.com. You will need your proxy card control
number(s) from the information mailed to you to utilize the web site. If you
don't have access to that or prefer to call, phone toll-free at 877-256-6083 and
a proxy service representative will assist you.
