UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-14 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ X ] Pre-Effective Amendment No. 2 [ ] Post-Effective Amendment No. ----- ----- (Check appropriate box or boxes) Exact Name of Registrant as Specified in Charter: Area Code and Telephone Number: AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. (816) 531-5575 - ------------------------------------------------ --------------------------- Address of Principal Executive Offices: (Number, Street, City, State, Zip Code) 4500 MAIN STREET, KANSAS CITY, MISSOURI 64111 - -------------------------------------------------------------------------------- Name and Address of Agent for Service: (Number, Street, City, State, Zip Code) CHARLES A. ETHERINGTON, 4500 MAIN STREET, KANSAS CITY, MISSOURI 64111 - -------------------------------------------------------------------------------- Approximate Date of Proposed Public Offering: April 16, 2007 ---------------------------------- Title of Securities Being Registered: LARGE COMPANY VALUE FUND VALUE FUND SMALL CAP VALUE FUND Calculation of Registration Fee under the Securities Act of 1933: No filing fee is due because of reliance on Section 24(f). The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine. PROXY STATEMENT/PROSPECTUS April 13, 2007 IMPORTANT VOTING INFORMATION INSIDE American Century Capital Portfolios, Inc. American Century Mutual Funds, Inc. American Century Strategic Asset Allocations, Inc. American Century World Mutual Funds, Inc. American Century Investments 4500 Main Street Kansas City, MO 64111 April 13, 2007 Dear Shareholder, I would like to invite you to an upcoming special meeting of shareholders to be held on June 27, 2007 at 11:00 a.m. Depending on the funds you hold, you are being asked to vote on one or more proposals to convert certain share classes to a different class of the same fund (sometimes referred to as reclassifications). The reclassification proposals relate to share classes that either have not received sufficient demand from investors or whose pricing structure differs from the industry standard. More detailed information is contained in the enclosed materials. The Boards of Directors of these funds, including all of the Independent Directors, unanimously approved and recommend that you vote FOR the reclassifications. These reclassifications are part of a larger set of initiatives designed to streamline American Century's mutual fund offerings and better align them with investor buying preferences and market opportunities. If these additional initiatives apply to your fund, they will be presented for your consideration and approval in a separate set of proxy materials. Your vote is extremely important, no matter how large or small your holdings. Please review the enclosed materials and vote online, by phone or by signing and returning your proxy card(s) in the enclosed postage-paid envelope. If we do not hear from you after a reasonable time, you may receive a call from our proxy solicitor, Automatic Data Processing, Inc. (ADP), reminding you to vote. If you have any questions or need assistance in completing your proxy card(s), please contact ADP at 1-877-256-6083. Thank you for investing with American Century Investments. Sincerely,
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Jonathan S. Thomas President and Chief Executive Officer American Century Investments AMERICAN CENTURY FUNDS LARGE COMPANY VALUE VALUE SELECT STRATEGIC ALLOCATION: CONSERVATIVE STRATEGIC ALLOCATION: MODERATE STRATEGIC ALLOCATION: AGGRESSIVE GLOBAL GROWTH INTERNATIONAL GROWTH SMALL CAP VALUE GROWTH VISTA BALANCED LIFE SCIENCES TECHNOLOGY IMPORTANT NEWS FOR SHAREHOLDERS Shareholders of certain classes of the American Century Funds listed above are being asked to approve a conversion of their shares to a different class of the same fund (referred to as the reclassifications). While we encourage you to read all of the proxy materials, the following Q&A addresses some key points about the reclassifications. The Q&A contains limited information, should be read in conjunction with, and is qualified in its entirety by reference to the more detailed information contained elsewhere in the Proxy Statement/Prospectus. QUESTIONS AND ANSWERS Q. WHEN WILL THE SPECIAL MEETING BE HELD? WHO CAN VOTE? A. The special meeting will be held on Wednesday, June 27, 2007, at 11:00 a.m. Central time at American Century's office at 4500 Main Street, Kansas City, Missouri. Please note, this will be a business meeting only. No presentations about the funds are planned. If you owned shares of one of the impacted funds at the close business on April 13, 2007, you are entitled to vote, even if you later sold the shares. Each shareholder is entitled to one vote per dollar of shares owned, with fractional dollars voting proportionally. Q. WHAT ARE THE RECLASSIFICATIONS? A. The following table outlines the proposed reclassifications and shows what shareholders will receive if the reclassifications are approved: IF YOU OWN SHARES OF: YOU WILL RECEIVE SHARES OF: - ---------------------------------------- --------------------------------------- Large Company Value - A Class Large Company Value - Advisor Class - ---------------------------------------- --------------------------------------- Value - A Class Value - Advisor Class - ---------------------------------------- --------------------------------------- Select - A Class Select - Advisor Class - ---------------------------------------- --------------------------------------- Strategic Allocation: Conservative - Strategic Allocation: Conservative - A Class Advitor Class - ---------------------------------------- --------------------------------------- Strategic Allocation: Moderate - Strategic Allocation: Moderate - A Class Advisor Class - ---------------------------------------- --------------------------------------- Strategic Allocation: Aggressive - Strategic Allocation: Aggressive - A Class Advisor Class - ---------------------------------------- --------------------------------------- Global Growth - A Class Global Growth - Advisor Class - ---------------------------------------- --------------------------------------- International Growth - A Class International Growth - Advisor Class - ---------------------------------------- --------------------------------------- Small Cap Value - C Class Small Cap Value - Advisor Class - ---------------------------------------- --------------------------------------- Growth - C Class Growth - Advisor Class - ---------------------------------------- --------------------------------------- Vista - C Class Vista - Advisor Class - ---------------------------------------- --------------------------------------- Balanced - Advisor Class Balanced - Investor Class - ---------------------------------------- --------------------------------------- Technology - Advisor Class Technology - Investor Class - ---------------------------------------- --------------------------------------- Life Sciences - Advisor Class, C Class Life Sciences - Investor Class - ---------------------------------------- --------------------------------------- Q. HOW WILL THE RECLASSIFICATIONS WORK? A. If a reclassification is approved, an amendment to the fund's Articles of Incorporation will be filed that will have the effect of converting the shares of the affected classes to shares of a different class of the same fund, as indicated in the table above. This change would take place on the Closing Date, as defined in the Proxy Statement/Prospectus. Q. HOW WILL THE RECLASSIFICATIONS AFFECT MY INVESTMENTS IN THE FUNDS? A. If approved, your shares will be converted to shares of a different class of the same fund, as indicated in the table above. The reclassifications: o will not cause you to be invested in a different fund or change the investment objectives, policies or manager of your funds; and o will not be taxable. Q. WILL THE RECLASSIFICATIONS INCREASE MY FUND EXPENSES? A. No. Operating expenses of the reclassified shares will either be lower than or the same as expenses prior to the reclassifications, as indicated in the following table: Shares Reclassified ------------------- Effect on From: To: Operating Expenses - -----------------|-----------------------|---------------------------- A Class | Advisor Class | Same Expenses - -----------------|-----------------------|---------------------------- C Class | Advisor Class | Lower Expenses - -----------------|-----------------------|---------------------------- Advisor Class | Investor Class | Lower Expenses - -----------------|-----------------------|---------------------------- C Class | Investor Class | Lower Expenses - -----------------|-----------------------|---------------------------- Q. WILL I HAVE TO PAY ANY SALES CHARGES ON SHARES RECEIVED IN THE RECLASSIFICATIONS? A. No. Q. HOW DOES THE BOARD OF DIRECTORS OF EACH FUND RECOMMEND THAT I VOTE? A. The Boards of Directors, including all of the Independent Directors, unanimously recommend you vote FOR the reclassifications. For a discussion of the factors the Boards considered in approving the reclassifications, see "Reasons for the Reclassifications." Q. MY HOLDINGS IN THE FUNDS ARE SMALL, WHY SHOULD I VOTE? A. Your vote makes a difference. If many shareholders do not vote their proxies, your fund may not receive enough votes to go forward with its special meeting. This means additional costs will be incurred to solicit additional votes to determine the outcome of the proposals. Q. WHAT HAPPENS IF ANY OF THE RECLASSIFICATIONS IS NOT APPROVED BY SHAREHOLDERS? A. Each reclassification is a separate transaction, and is not dependent upon the approval of any other reclassification. If a reclassification does not receive shareholder approval, American Century may ask for Board approval to liquidate the affected class. In addition, if a significant number of reclassification proposals do not receive shareholder approval, American Century may elect not to proceed with any of them. Q. WHY ARE MULTIPLE PROXY CARDS ENCLOSED? A. You will receive a proxy card for each of the funds in which you are a shareholder. In addition, if you own shares of the same fund in multiple accounts that are titled differently, you will receive a proxy card for each account. Q. HOW DO I CAST MY VOTE? A. You may vote online, by phone, by mail, by fax or in person at the special meeting. To vote online, access the Web site listed on a proxy card. To vote by telephone, call the toll-free number listed on a proxy card. To vote online or by telephone, you will need the number that appears in the gray box on each of your proxy cards. To vote by mail, complete, sign and send us the enclosed proxy card(s) in the enclosed postage-paid envelope. To vote by fax, complete and sign the proxy card(s) and fax both sides to the toll-free number listed on a proxy card. You also may vote in person at the special meeting on Wednesday, June 27, 2007. If you need more information or have any questions on how to cast your vote, call our proxy solicitor at 1-877-256-6083. YOUR VOTE IS IMPORTANT. PLEASE VOTE TODAY AND AVOID THE NEED FOR ADDITIONAL SOLICITATION EXPENSES. AMERICAN CENTURY FUNDS LARGE COMPANY VALUE VALUE SELECT STRATEGIC ALLOCATION: CONSERVATIVE STRATEGIC ALLOCATION: MODERATE STRATEGIC ALLOCATION: AGGRESSIVE GLOBAL GROWTH INTERNATIONAL GROWTH SMALL CAP VALUE GROWTH VISTA BALANCED LIFE SCIENCES TECHNOLOGY 4500 MAIN STREET KANSAS CITY, MISSOURI 64111 NOTICE OF A SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON JUNE 27, 2007 To Our Shareholders: NOTICE IS HEREBY GIVEN that a Special Meeting of Shareholders (the "Meeting") of the American Century Funds listed above will be held at 4500 Main Street, Kansas City, Missouri on June 27, 2007 at 11:00 a.m., Central Time for the following purposes: For A Class shareholders of Large Company Value, Value, Select, Strategic Allocation: Conservative, Strategic Allocation: Moderate, Strategic Allocation: Aggressive, Global Growth and International Growth: To approve the reclassification of the A Class shares of Large Company Value and Value, each a series of American Century Capital Portfolios, Inc.; Select, a series of American Century Mutual Funds, Inc.; Strategic Allocation: Conservative, Strategic Allocation: Moderate, and Strategic Allocation: Aggressive, series of American Century Strategic Asset Allocations, Inc.; and Global Growth and International Growth, series of American Century World Mutual Funds, Inc., whereby, effective August 31, 2007, or on such other date as American Century may decide, all of the A Class shares will be reclassified as Advisor Class shares of the same funds. As a result of this reclassification, each holder of A Class shares of the aforementioned funds will become the owner of Advisor Class shares of the same funds, having a total net asset value ("NAV") equal to the total NAV of his or her A Class holdings in the applicable funds on the date of the reclassification. For C Class shareholders of Small Cap Value, Growth, and Vista: To approve the reclassification of the C Class shares of Small Cap Value, a series of American Century Capital Portfolios, Inc., and Growth and Vista, series of American Century Mutual Funds, Inc., whereby, effective November 30, 2007, or on such other date as American Century may decide, all of the C Class shares will be reclassified as Advisor Class shares of the same funds. As a result of this reclassification, each holder of C Class shares of the aforementioned funds will become the owner of Advisor Class shares of the same funds, having a total NAV equal to the total NAV of his or her C Class holdings in the applicable funds on the date of the reclassification. For Advisor Class shareholders of Balanced, Life Sciences, and Technology: To approve the reclassification of the Advisor Class shares of Balanced, a series of American Century Mutual Funds, Inc., and Life Sciences and Technology, series of American Century World Mutual Funds, Inc., whereby effective November 30, 2007, or on such other date as American Century may decide, all of the Advisor Class shares will be reclassified as Investor Class shares of the same funds. As a result of this reclassification, each holder of Advisor Class shares of the aforementioned funds will become the owner of Investor Class shares of the same respective funds, having a total NAV equal to the total NAV of his or her Advisor Class holdings in the applicable funds on the date of the reclassification. For C Class shareholders of Life Sciences: To approve the reclassification of the C Class shares of Life Sciences, a series of American Century World Mutual Funds, Inc., whereby effective November 30, 2007, or on such other date as American Century may decide, all of the C Class shares will be reclassified as Investor Class shares of the same fund. As a result of this reclassification, each holder of C Class shares of Life Sciences will become the owner of Investor Class shares of Life Sciences, having a total NAV equal to the total NAV of his or her holdings in the fund on the date of the reclassification. It is not anticipated that any matters other than the approval of the reclassifications will be brought before the meeting. If, however, any other business is properly brought before the meeting, proxies will be voted in accordance with the judgment of the persons designated as proxies. The Boards of Directors of the aforementioned funds have fixed the close of business on April 13, 2007, as the record date for the determination of shareholders entitled to notice of, and to vote at, the Meeting or any adjournment thereof. YOU ARE CORDIALLY INVITED TO ATTEND THE MEETING. SHAREHOLDERS ARE REQUESTED AND ENCOURAGED TO VOTE ONLINE, BY PHONE, OR BY DATING, SIGNING AND RETURNING EACH ENCLOSED PROXY CARD IN THE POSTAGE-PAID ENVELOPE PROVIDED FOR THAT PURPOSE. IF YOU INTEND TO ATTEND THE MEETING IN PERSON, YOU MAY REGISTER YOUR PRESENCE WITH THE REGISTRAR AND VOTE YOUR SHARES IN PERSON, EVEN IF YOU HAVE PREVIOUSLY VOTED YOUR SHARES BY PROXY. If you properly execute and return the enclosed proxy card(s) in time to be voted at the Meeting, your shares represented by the proxies will be voted at the Meeting in accordance with your instructions. Unless revoked, proxies that have been returned by shareholders without instructions will be voted in favor of the reclassifications. The enclosed proxies are being solicited on behalf of the Boards of Directors of the funds. THE BOARDS OF DIRECTORS OF EACH OF THE FUNDS UNANIMOUSLY RECOMMENDS THAT THE SHAREHOLDERS OF THE FUNDS VOTE FOR THE RECLASSIFICATIONS. By Order of the Boards of Directors of the funds, Ward D. Stauffer Secretary April 13, 2007 COMBINED PROXY STATEMENT AND PROSPECTUS APRIL 3, 2007 RECLASSIFICATIONS OF SHARE CLASSES OF THE FOLLOWING FUNDS: A CLASS SHARES OF THE FOLLOWING FUNDS WILL BE RECLASSIFIED AS ADVISOR CLASS SHARES OF THE SAME FUNDS: AMERICAN CENTURY LARGE COMPANY VALUE FUND AMERICAN CENTURY VALUE FUND EACH, A SERIES OF AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. AMERICAN CENTURY SELECT FUND A SERIES OF AMERICAN CENTURY MUTUAL FUNDS, INC. AMERICAN CENTURY STRATEGIC ALLOCATION: CONSERVATIVE FUND AMERICAN CENTURY STRATEGIC ALLOCATION: MODERATE FUND AMERICAN CENTURY STRATEGIC ALLOCATION: AGGRESSIVE FUND EACH, A SERIES OF AMERICAN CENTURY STRATEGIC ASSET ALLOCATIONS, INC. AMERICAN CENTURY GLOBAL GROWTH FUND AMERICAN CENTURY INTERNATIONAL GROWTH FUND EACH, A SERIES OF AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. C CLASS SHARES OF THE FOLLOWING FUNDS WILL BE RECLASSIFIED AS ADVISOR CLASS SHARES OF THE SAME FUNDS: AMERICAN CENTURY SMALL CAP VALUE FUND A SERIES OF AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. AMERICAN CENTURY GROWTH FUND AMERICAN CENTURY VISTA FUND EACH, A SERIES OF AMERICAN CENTURY MUTUAL FUNDS, INC. ADVISOR CLASS SHARES OF THE FOLLOWING FUNDS WILL BE RECLASSIFIED AS INVESTOR CLASS SHARES OF THE SAME FUNDS: AMERICAN CENTURY BALANCED FUND A SERIES OF AMERICAN CENTURY MUTUAL FUNDS, INC. AMERICAN CENTURY LIFE SCIENCES FUND AMERICAN CENTURY TECHNOLOGY FUND EACH, A SERIES OF AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. C CLASS SHARES OF THE FOLLOWING FUND WILL BE RECLASSIFIED AS INVESTOR CLASS SHARES OF THE SAME FUND: AMERICAN CENTURY LIFE SCIENCES FUND A SERIES OF AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. Each fund has the following address: 4500 Main Street Kansas City, Missouri 64111 Telephone No: 1-877-345-8836 This document is a combined Proxy Statement and Prospectus and we refer to it as the Proxy Statement/Prospectus. We are sending you this Proxy Statement/Prospectus in connection with the Special Meeting of Shareholders (the "Meeting") for the following American Century Funds: Large Company Value, Value, Select, Strategic Allocation: Conservative, Strategic Allocation: Moderate, Strategic Allocation: Aggressive, Global Growth, International Growth, Small Cap Value, Growth, Vista, Balanced, Life Sciences, and Technology. The Meeting will be held at 4500 Main Street, Kansas City, Missouri on June 27, 2007, at 11:00 a.m., Central Time. We intend to mail this Proxy Statement/Prospectus, the enclosed Notice of a Special Meeting of Shareholders and the enclosed proxy card(s) on or about April 16, 2007, to all shareholders entitled to vote at the Meeting. At the Meeting, we are asking shareholders of the American Century Funds to consider the following proposals: - -------------------------------------------------------------------------------- Proposal 1: To approve the conversion or "reclassification" of the A Class shares of the American Century Large Company Value Fund ("Large Company Value") and the American Century Value Fund ("Value"), each a series of American Century Capital Portfolios, Inc.; the American Century Select Fund ("Select"), a series of American Century Mutual Funds, Inc.; the American Century Strategic Allocation: Conservative Fund ("Strategic Allocation: Conservative"), the American Century Strategic Allocation: Moderate Fund ("Strategic Allocation: Moderate"), and the American Century Strategic Allocation: Aggressive Fund ("Strategic Allocation: Aggressive"), each a series of American Century Strategic Asset Allocations, Inc.; and the American Century Global Growth Fund ("Global Growth") and the American Century International Growth Fund ("International Growth"), each a series of American Century World Mutual Funds, Inc., whereby effective August 31, 2007, or on such other date as American Century may decide, all of the A Class shares will be reclassified as Advisor Class shares of the same Funds. - -------------------------------------------------------------------------------- Proposal 2: To approve the conversion or "reclassification" of the C Class shares of the American Century Small Cap Value Fund ("Small Cap Value"), a series of American Century Capital Portfolios, Inc.; and the American Century Growth Fund ("Growth") and the American Century Vista Fund ("Vista"), each a series of American Century Mutual Funds, Inc., whereby effective November 30, 2007, or on such other date as American Century may decide, all of the C Class shares will be reclassified as Advisor Class shares of the same Funds. - -------------------------------------------------------------------------------- Proposal 3: To approve the conversion or "reclassification" of the Advisor Class shares of the American Century Balanced Fund ("Balanced"), a series of American Century Mutual Funds, Inc.; and the American Century Life Sciences Fund ("Life Sciences") and the American Century Technology Fund ("Technology"), each a series of American Century World Mutual Funds, Inc., whereby effective November 30, 2007, or on such other date as American Century may decide, all of the Advisor Class shares will be reclassified as Investor Class shares of the same Funds. - -------------------------------------------------------------------------------- Proposal 4: To approve the conversion or "reclassification" of the C Class shares of the American Century Life Sciences Fund ("Life Sciences"), a series of American Century World Mutual Funds, Inc., whereby effective November 30, 2007, or on such other date as American Century may decide, all of the C Class shares will be reclassified as Investor Class shares of Life Sciences. - -------------------------------------------------------------------------------- Each of the above proposed reclassifications shall hereinafter be individually referred to as a "Reclassification" and collectively referred to as the "Reclassifications." Each of the aforementioned funds shall individually be referred to as an "American Century Fund" or a "Fund" and collectively referred to as the "American Century Funds" or the "Funds." Each of the above referenced corporations may hereinafter be referred to as a "Corporation" and collectively referred to as the "Corporations." Your Board of Directors is seeking your proxy to vote FOR the proposals. - -------------------------------------------------------------------------------- THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROXY STATEMENT/ PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. - -------------------------------------------------------------------------------- This Proxy Statement/Prospectus is a proxy statement of the American Century Funds in connection with the solicitation of your proxy to vote your shares at the Meeting, and serves as a prospectus for each applicable American Century Fund under the Securities Act of 1933, as amended (the "Securities Act"), in connection with the issuance of shares to you pursuant to the terms of the Reclassifications. This Proxy Statement/Prospectus should be retained for future reference. It sets forth concisely the information about the Funds that a prospective investor should know before investing. Shareholders will receive a prospectus of the Funds they are currently invested in along with this Proxy Statement/Prospectus. A statement of additional information dated April 3, 2007, relating to this Proxy Statement/Prospectus, contains additional information and has been filed by the American Century Funds with the Securities and Exchange Commission ("SEC") and is incorporated herein by reference. In addition, each of the following documents is incorporated by reference (and legally considered to be part of the Proxy Statement/Prospectus): 1. A prospectus for Large Company Value dated August 1, 2006; 2. A prospectus for Value dated August 1, 2006; 3. A prospectus for Small Cap Value dated August 1, 2006; 4. The combined statement of additional information for Large Company Value, Value, and Small Cap Value dated August 1, 2006; 5. A prospectus for Select dated March 1, 2007; 6. A prospectus for Balanced dated March 1, 2007; 7. A prospectus for Growth dated March 1, 2007; 8. A prospectus for Vista dated March 1, 2007; 9. The combined statement of additional information for Select, Balanced, Growth and Vista dated March 1, 2007; 10. The combined prospectus for Strategic Allocation: Conservative, Strategic Allocation: Moderate and Strategic Allocation: Aggressive, dated April 1, 2007; 11. The combined statement of additional information for Strategic Allocation: Conservative, Strategic Allocation: Moderate and Strategic Allocation: Aggressive, dated April 1, 2007; 12. The prospectus for Global Growth dated April 1, 2007; 13. The prospectus for International Growth dated April 1, 2007; 14. The prospectus for Life Sciences dated April 1, 2007; 15. The prospectus for Technology dated April 1, 2007; and 16. The combined statement of additional information for Global Growth, International Growth, Life Sciences and Technology dated April 1, 2007; 17. The combined annual report dated March 31, 2006 and combined semiannual report dated September 30, 2006 for Large Company Value and Value; 18. The annual report dated March 31, 2006 and semiannual report dated September 30, 2006 for Small Cap Value; 19. The annual report for Select dated October 31, 2006; 20. The annual report for Balanced dated October 31, 2006; 21. The combined annual report for Growth and Vista dated October 31, 2006; 22. The combined annual report for Strategic Allocation: Conservative, Strategic Allocation: Moderate and Strategic Allocation: Aggressive dated November 30, 2006; 23. The combined annual report for Global Growth and International Growth dated November 30, 2006; and 24. The combined annual report for Life Sciences and Technology dated November 30, 2006. References to the above-listed documents include any supplements to such documents in effect as of the date of this Proxy/Statement Prospectus. Copies of these materials and other information about the American Century Funds may be obtained without charge by writing to or calling American Century Investments at the address and telephone number shown above. They are also available electronically at American Century's Web site at americancentury.com. NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROXY STATEMENT/ PROSPECTUS AND IN THE MATERIALS EXPRESSLY INCORPORATED HEREIN BY REFERENCE AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUNDS. THE SHARES OFFERED BY THIS PROXY STATEMENT/ PROSPECTUS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, ANY BANK. THE SHARES OFFERED BY THIS PROXY STATEMENT/PROSPECTUS ARE NOT FEDERALLY INSURED BY, GUARANTEED BY, OBLIGATIONS OF OR OTHERWISE SUPPORTED BY THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENTAL AGENCY. AN INVESTMENT IN THE FUNDS INVOLVES INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED. TABLE OF CONTENTS PAGE SUMMARY Introduction Closing Dates Proposals with Respect to Approval of the Reclassifications PROPOSAL 1 - To Approve the Proposed Reclassifications of A Class Shares as Advisor Class Shares Reasons for the Reclassifications of A Class Shares as Advisor Class Shares Related Advisor Class Fee Change Proposal Consequences of the Reclassifications Description of the Shares Investment Objectives, Policies and Risks Purchase, Redemption and Exchange of Shares Comparative Fee Tables Comparative Performance Tables PROPOSAL 2 - To Approve the Proposed Reclassifications of C Class Shares as Advisor Class Shares Reasons for the Reclassifications of C Class Shares as Advisor Class Shares Consequences of the Reclassifications Description of the Shares Investment Objectives, Policies and Risks Purchase, Redemption and Exchange of Shares Comparative Fee Tables Comparative Performance Tables PROPOSAL 3 - To Approve the Proposed Reclassifications of Advisor Class Shares as Investor Class Shares Reasons for the Reclassifications of Advisor Class Shares as Investor Class Shares Consequences of the Reclassifications Description of the Shares Investment Objectives, Policies and Risks Purchase, Redemption and Exchange of Shares Comparative Fee Tables Comparative Performance Tables PROPOSAL 4 - To Approve the Proposed Reclassification of C Class Shares as Investor Class Shares Reasons for the Reclassifications of C Class Shares as Investor Class Shares Consequences of the Reclassifications Description of the Shares Investment Objectives, Policies and Risks Purchase, Redemption and Exchange of Shares Comparative Fee Table Comparative Performance Table INFORMATION ABOUT THE RECLASSIFICATIONS Terms of the Reclassifications Costs of the Reclassifications Reasons for the Reclassifications Federal Income Tax Consequences Description of the Fund Shares Calculation of Sales Charges for A Class Shares Reductions and Waivers of Sales Charges for A Class Shares Calculation of Contingent Deferred Sales Charges Applicable to A and C Class Shares CDSC Waivers Reinstatement Privilege Rights of Shareholders Voting Rights of Shareholders Meetings of Shareholders Fund Capitalization INFORMATION ABOUT THE AMERICAN CENTURY FUNDS General Information Date, Time and Place of Meeting Use and Revocation of Proxies Voting Rights and Required Votes Record Date and Outstanding Shares Security Ownership of Certain Beneficial Owners and Management of the Funds Other Service Providers WHERE TO FIND ADDITIONAL INFORMATION OTHER MATTERS AND DISCRETION OF ATTORNEYS NAMED IN THE PROXY FORM OF AMENDMENT TO THE CHARTER EXHIBIT A MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE EXHIBIT B FINANCIAL HIGHLIGHTS EXHIBIT C SUMMARY This summary is qualified in its entirety by the additional information contained elsewhere in this Proxy Statement/Prospectus, or incorporated by reference into this Proxy Statement/Prospectus. For more complete information, please read the prospectuses and statements of additional information of Large Company Value, Value and Small Cap Value, series of American Century Capital Portfolios, Inc.; Select, Balanced, Growth, and Vista, series of American Century Mutual Funds, Inc.; Strategic Allocation: Conservative, Strategic Allocation: Moderate and Strategic Allocation: Aggressive, series of American Century Strategic Asset Allocations, Inc.; and Global Growth, International Growth, Life Sciences, and Technology, series of American Century World Mutual Funds, Inc. INTRODUCTION This Proxy Statement/Prospectus is furnished to you because you are entitled to vote on one or more of the proposals described in this Proxy Statement/Prospectus that will be considered at the Meeting. The Meeting will be held on June 27, 2007, to consider the proposals described in this Proxy Statement/Prospectus. The following is a brief summary of the proposals that will be voted upon at the Meeting: 1. It is being proposed that all of the A Class shares of Large Company Value, Value, Select, Strategic Allocation: Conservative, Strategic Allocation: Moderate, and Strategic Allocation: Aggressive, Global Growth and International Growth, be reclassified as Advisor Class shares of the same Funds. If approved, as a result of this Reclassification, each shareholder of A Class shares of the aforementioned Funds will become the owner of Advisor Class shares of the same Funds, having a total net asset value ("NAV") equal to the total NAV of his or her A Class holdings in the applicable Fund(s) on the Closing Date (as hereinafter defined). 2. It is being proposed that all of the C Class shares of Small Cap Value, Growth and Vista be reclassified as Advisor Class shares of the same Funds. If approved, as a result of this Reclassification, each shareholder of C Class shares of the aforementioned Funds will become the owner of Advisor Class shares of the same Funds, having a total NAV equal to the total NAV of his or her C Class holdings in the applicable Fund(s) on the Closing Date (as hereinafter defined). 3. It is being proposed that all of the Advisor Class shares of Balanced, Life Sciences and Technology be reclassified as Investor Class shares of the same Funds. If approved, as a result of this Reclassification, each shareholder of Advisor Class shares of the aforementioned Funds will become the owner of Investor Class shares of the same Funds, having a total NAV equal to the total NAV of his or her Advisor Class holdings in the applicable Fund(s) on the Closing Date (as hereinafter defined). 4. It is being proposed that all of the C Class shares of Life Sciences be reclassified as Investor Class shares of the same Fund. If this proposal is approved, this Reclassification would be effective on the Closing Date (as hereafter defined. If approved, as a result of this Reclassification, each shareholder of C Class shares of Life Sciences will become the owner of Investor Class shares of Life Sciences, having a total NAV equal to the total NAV of his or her C Class holdings in the Fund on the Closing Date (as hereinafter defined). Each of the Boards of Directors of the aforementioned Funds shall be collectively referred to as the "Boards." The Boards, including Directors who are not "interested persons" within the meaning of Section 2(a)(19) of the Investment Company Act of 1940, as amended ("1940 Act"), have concluded that the Reclassifications would be in the best interests of the A Class, Advisor Class and C Class shareholders, and in the best interests of the various classes into which those shares would be reclassified. Consummation of any one Reclassification is not conditioned upon the consummation of any other Reclassification. If a Reclassification does not receive shareholder approval, American Century may ask for Board approval to liquidate the affected class. In addition, if a significant number of Reclassification proposals do not receive shareholder approval, American Century may elect not to proceed with any of them. Each Reclassification will be a tax-free event under applicable provisions of the Internal Revenue Code, as amended, so that no gain or loss will be recognized by the American Century Funds or the American Century Funds' shareholders. CLOSING DATES If all of the requisite approvals are obtained, it is anticipated that the Reclassifications in Proposal 1 will be consummated following the close of business on August 31, 2007, or on such other date as American Century may decide. It is anticipated that the Reclassifications in Proposals 2, 3 and 4 will be consummated following the close of business on November 30, 2007, or on such other date as American Century may decide (collectively the consummation dates for all proposals are known as the "Closing Dates"). PROPOSALS WITH RESPECT TO THE APPROVAL OF THE RECLASSIFICATIONS PROPOSAL 1 - TO APPROVE THE PROPOSED RECLASSIFICATIONS OF A CLASS SHARES AS ADVISOR CLASS SHARES LARGE COMPANY VALUE, VALUE, SELECT, STRATEGIC ALLOCATION: CONSERVATIVE, STRATEGIC ALLOCATION: MODERATE, STRATEGIC ALLOCATION: AGGRESSIVE, GLOBAL GROWTH AND INTERNATIONAL GROWTH (THE "A/ADVISOR CLASS FUNDS") REASONS FOR THE RECLASSIFICATIONS OF A CLASS SHARES AS ADVISOR CLASS SHARES At its meetings on November 29, 2006, and March 7, 2007, the Boards on behalf of the A/Advisor Class Funds, authorized, approved and declared it advisable to amend each Corporation's Articles of Incorporation to reflect a Reclassification of all A Class shares of the A/Advisor Class Funds as Advisor Class shares of the same Funds. The Boards of the A/Advisor Class Funds propose the Reclassifications to simplify and standardize the share class structure of the affected Funds. Currently, the total expense ratios of the A Class and Advisor Class shares are the same. However, the two classes reimburse financial intermediaries from different sources for the provision of shareholder/administrative services. The Advisor Class pays such reimbursements out of its Rule 12b-1 fee. By contrast, A Class reimbursements are paid out of the unified management fee received by the Advisor and not the Rule 12b-1 fee. The Reclassifications are part of a larger initiative to combine the A Class and the Advisor Class in a way that preserves the longer performance record of the Advisor Class and the fee structure of the A Class. This fee structure is more consistent with industry practice and American Century's internal pricing structure. Each Reclassification will be a tax-free event under applicable provisions of the Internal Revenue Code, as amended, so that no gain or loss will be recognized by the American Century Funds or the American Century Funds' shareholders. RELATED ADVISOR CLASS FEE CHANGE PROPOSAL The Boards recently approved a proposal to change the fee structure of the Advisor Class of the A/Advisor Class Funds. Advisor Class shareholders will receive a separate proxy statement describing this proposal in greater detail and will have an opportunity to vote on it. If approved by the Advisor Class shareholders, the Rule 12b-1 fee of the Advisor Class would be reduced 25 basis points from 0.50% to 0.25% and the corresponding management fee would simultaneously increase 25 basis points, resulting in no net change in the total expense ratio. If the Advisor Class shareholders approve the fee proposal, and the A Class shareholders approve the Reclassifications, American Century intends to add a front end sales charge (load) to the Advisor Class. The resulting Advisor Class fee structure would mirror that of the A Class at the time of the Reclassifications. Following the Reclassifications, the Advisor Class would be renamed A Class. CONSEQUENCES OF THE RECLASSIFICATIONS If the A Class shareholders approve the Reclassifications, and the Advisor Class shareholders approve the related Advisor Class fee changes, holders of A Class shares will have their shares reclassified as Advisor Class shares of the same Fund. The Advisor Class shares would then be renamed A Class. Neither the net asset value of your investment in a Fund nor the expenses associated with your investment will change as a result of the Reclassifications. You will not pay a sales charge on shares received as a result of the Reclassifications. It is anticipated that there will not be any tax consequences as a result of the Reclassifications. As previously noted, if these Reclassifications are approved, they would be effective on the Closing Date. DESCRIPTION OF THE SHARES Currently, A Class shares and Advisor Class shares have identical total expense ratios. A Class shares are subject to a maximum 5.75% sales charge unless a waiver applies. Advisor Class shares are not currently subject to a sales charge, but will carry such a charge at the time of the Reclassifications. The current management and Rule 12b-1 fees for the share classes are as follows: - --------------------- ----------- -------------- --------------- ------------------ AMERICAN CENTURY FUND CLASS MANAGEMENT FEE RULE 12B-1 FEE TOTAL MANAGEMENT AND RULE 12B-1 FEES(1) - --------------------- ----------- -------------- --------------- ------------------ Large Company Value A 0.84% 0.25% 1.09% - --------------------- ----------- -------------- --------------- ------------------ Advisor 0.59% 0.50% 1.09% - --------------------- ----------- -------------- --------------- ------------------ Value A 0.99% 0.25% 1.24% - --------------------- ----------- -------------- --------------- ------------------ Advisor 0.74% 0.50% 1.24% - --------------------- ----------- -------------- --------------- ------------------ Select A 1.00% 0.25% 1.25% - --------------------- ----------- -------------- --------------- ------------------ Advisor 0.75% 0.50% 1.25% - --------------------- ----------- -------------- --------------- ------------------ Strategic Allocation: Conservative A 0.99% 0.25% 1.24% - --------------------- ----------- -------------- --------------- ------------------ Advisor 0.74% 0.50% 1.24% - --------------------- ----------- -------------- --------------- ------------------ Strategic Allocation: Moderate A 1.05% 0.25% 1.30% - --------------------- ----------- -------------- --------------- ------------------ Advisor 0.80% 0.50% 1.30% - --------------------- ----------- -------------- --------------- ------------------ Strategic Allocation: Aggressive A 1.18% 0.25% 1.43% - --------------------- ----------- -------------- --------------- ------------------ Advisor 0.93% 0.50% 1.43% - --------------------- ----------- -------------- --------------- ------------------ Global Growth A 1.30% 0.25% 1.55% - --------------------- ----------- -------------- --------------- ------------------ Advisor 1.05% 0.50% 1.55% - --------------------- ----------- -------------- --------------- ------------------ International Growth A 1.25% 0.25% 1.50% - --------------------- ----------- -------------- --------------- ------------------ Advisor 1.00% 0.50% 1.50% - --------------------- ----------- -------------- --------------- ------------------ (1) Does not include "Other Expenses." See Annual Fund Operating Expenses table. As described above under "Related Advisor Class Fee Change Proposal," the Boards recently approved a proposal to change the fee structure of the Advisor Class. If the fee proposal is approved by the Advisor Class shareholders, the Rule 12b-1 fee of the Advisor Class would be reduced 25 basis points from 0.50% to 0.25%, the corresponding management fee would simultaneously increase 25 basis points, and the A Class and Advisor Class will share an identical fee structure. If the Advisor Class shareholders of an A/Advisor Class Fund do not approve the management fee change, then the Rule 12b-1 fee would remain at 0.50%, the management fee would continue at its current level, and the Reclassification with respect to that Fund would not be consummated. INVESTMENT OBJECTIVES, POLICIES AND RISKS Since the A Class and Advisor Class shares of a Fund represent interests in the same portfolio, they share identical investment objectives, policies, limitations and risks. Since A Class and Advisor Class shareholders are subject to identical risks, a discussion regarding the risks or a comparison of the risks is not necessary. The investment objectives of the A/Advisor Class Funds are listed in the following table. - -------------------------------------- ----------------------------------------- AMERICAN CENTURY FUND INVESTMENT OBJECTIVE - -------------------------------------- ----------------------------------------- Large Company Value Seeks long-term capital growth; income is a secondary objective. - -------------------------------------- ----------------------------------------- Value Seeks long-term capital growth; income is a secondary objective. - -------------------------------------- ----------------------------------------- Select Seeks long-term capital growth. - -------------------------------------- ----------------------------------------- Strategic Allocation: Conservative Seeks highest level of total return consistent with its asset mix. - -------------------------------------- ----------------------------------------- Strategic Allocation: Moderate Seeks highest level of total return consistent with its asset mix. - -------------------------------------- ----------------------------------------- Strategic Allocation: Aggressive Seeks highest level of total return consistent with its asset mix. - -------------------------------------- ----------------------------------------- Global Growth Seeks capital growth. - -------------------------------------- ----------------------------------------- International Growth Seeks capital growth. - -------------------------------------- ----------------------------------------- Reference is hereby made to the A/Advisor Class Funds' prospectuses and statements of additional information, all of which are incorporated herein by reference. These documents set forth in full the investment objectives, policies, and investment limitations of each A/Advisor Class Fund, and include a full discussion of the risks inherent in investments in each A/Advisor Class Fund. PURCHASE, REDEMPTION AND EXCHANGE OF SHARES The following table highlights certain purchase, redemption and exchange features of the A/Advisor Class Funds. - ----------------------------- -------------------------------------- ---------------------------------------------- PURCHASE, REDEMPTION A CLASS ADVISOR CLASS AND EXCHANGE FEATURES - ----------------------------- -------------------------------------- ---------------------------------------------- Initial Sales Charge Load-waived A Class Shares are None (as a percentage not subject to the sales charge. of offering price) See "Information about the Reclassifications--Reduction and Waiver of Sales Charges for A Class shares." The following apply to other A Class shares: o 5.75% is the maximum sales charge applicable (subject to the availability of waivers and reduced sales charges) o No sales charge for purchases of $1 million or more - ----------------------------- -------------------------------------- ---------------------------------------------- Reductions and o Reductions in sales charge Not Applicable Waivers of Initial based upon amount invested Sales Charge o Waivers for Certain Investors o Rights of Accumulation/Account Aggregation o Concurrent Purchases o Letter of Intent For further discussion of reductions and waivers of initial sales charge, see "Description of Fund Shares-Reductions and Waivers of Sales Charges for A Class Shares." - ----------------------------- -------------------------------------- ---------------------------------------------- Contingent Deferred o Generally no contingent None Sales Charge (CDSC) deferred sales charge o A contingent deferred sales charge of 1.00% will be charged on shares purchased in amounts of $1 million or more (to which the initial sale charge does not apply) that are redeemed within one year of purchase For further discussion of CDSC, see "Description of Fund Shares-Calculation of Contingent Deferred Sales Charges and CDSC Waivers." - ----------------------------- -------------------------------------- ------------------------------------------- Minimum Initial o Employer-sponsored Same as A Class Investment retirement account: No minimum o Broker-Dealer Sponsored Wrap program accounts and/or fee-based accounts: No minimum o Coverdell Education Savings Accounts: $2000 o Financial Intermediaries: $250 o All other accounts: $2500 - ----------------------------- -------------------------------------- ------------------------------------------- Minimum Subsequent o Financial Intermediaries: Same as A Class Investments No Minimum o Employer-Sponsored Retirement Plans: No Minimum o All other accounts: $50 - ----------------------------- -------------------------------------- ------------------------------------------- Redemption Fees Not Applicable, other than a $10 Same as A Class charge for redemption requests made by a wire transfer. - ----------------------------- -------------------------------------- ------------------------------------------- Purchases/Redemptions By mail, fax, telephone, online, in Same as A Class person or automatically. - ----------------------------- -------------------------------------- ------------------------------------------- Redemption Policies The Fund reserves the right to delay Same as A Class delivery of redemption proceeds up to seven days. Any redemption request made within 15 days of an address change may be required to be submitted in writing with guaranteed signatures of all authorized signers. If bank information is changed, a 15-day holding period may be imposed before the proceeds are wired to the bank. The Fund reserves the right to redeem in kind (i.e., in securities rather than cash) if during any 90-day period you redeem fund shares worth more than $250,000 or 1% of the value of the fund's assets if that amount is less than $250,000. If the redemption would exceed this limit and the shareholder would like to avoid being paid in securities, they may provide American Century with an unconditional instruction to redeem at least 15 days prior to the date on which the redemption transaction is to occur. The instruction must specify the dollar amount or number of shares to be redeemed and the date of the transaction. - ----------------------------- -------------------------------------- ------------------------------------------- Exchanges You may exchange shares of the fund Because there is no sales charge or CDSC for A class shares of another on Advisor Class shares, shareholders may American Century fund without a redeem and purchase shares into the Advisor, sales charge if: Investor, or Institutional class shares of another American Century fund without o The exchange is for a incurring a sales charge. However, minimum of $100; and investors will have to meet the applicable minimum initial investment when purchasing o If the exchange opens a new new investments in these Funds. account, the amount of the exchange must meet or exceed the minimum account size requirement for the fund receiving the exchange - ----------------------------- -------------------------------------- ------------------------------------------- If the Reclassifications are consummated, it is anticipated that the features described above for the Advisor Class shares will be made to mirror those of the A Class shares. COMPARATIVE FEE TABLES The A/Advisor Class Funds, like all mutual funds, incur certain expenses in their operations. These expenses include management fees, as well as the costs of maintaining accounts, administration, providing shareholder liaison and distribution services and other activities. Set forth in the tables below is information regarding fees and expenses of the A/Advisor Class Funds and pro forma fees for the A/Advisor Class Funds after giving effect to the Reclassifications. A/ADVISOR CLASS FUNDS SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) FOR ALL FUNDS A ADVISOR PRO FORMA CLASS CLASS ADVISOR CLASS ---------------------------------------------------------------------- Maximum Sales Charge (Load) 5.75%(1) None 5.75%(1) Imposed on Purchases (as a percentage of offering price) Maximum Deferred None(2) None None(2) Sales Charge (Load) (as a percentage of the lower of the original offering price or redemption proceeds for A Class shares) Redemption/Exchange Fee None None(3) None (as a percentage of amount redeemed/exchanged) ---------------------------------------------------------------------- Maximum Account None None None Maintenance Fee ---------------------------------------------------------------------- (1) THIS SALES CHARGE WILL NOT APPLY TO LOAD-WAIVED A CLASS SHARES. (2) INVESTMENTS OF $1 MILLION OR MORE IN A CLASS SHARES MAY BE SUBJECT TO A CONTINGENT DEFERRED SALES CHARGE OF 1.00% IF THE SHARES ARE REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE. (3) A REDEMPTION FEE OF 2.00% APPLIES TO ADVISOR CLASS SHARES OF INTERNATIONAL GROWTH HELD FOR LESS THAN 60 DAYS. THE FEE DOES NOT APPLY TO SHARES PURCHASED THROUGH REINVESTED DIVIDENDS OR CAPITAL GAINS. ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS) DISTRIBUTION TOTAL ANNUAL MANAGEMENT AND SERVICE OTHER FUND OPERATING FUND NAME CLASS FEE(1) (12B-1) FEES(2) EXPENSES EXPENSES - ---------------------------------------------------------------------------------------------------- Large Company Value A Class 0.84% 0.25% 0.00%(3) 1.09% - ---------------------------------------------------------------------------------------------------- Advisor Class 0.59% 0.50% 0.00%(3) 1.09% - ---------------------------------------------------------------------------------------------------- Pro Forma Advisor Class 0.84% 0.25% 0.00%(3) 1.09% - ---------------------------------------------------------------------------------------------------- Value A Class 0.99% 0.25% 0.00%(3) 1.24% - ---------------------------------------------------------------------------------------------------- Advisor Class 0.74% 0.50% 0.00%(3) 1.24% - ---------------------------------------------------------------------------------------------------- Pro Forma Advisor Class 0.99% 0.25% 0.00%(3) 1.24% - ---------------------------------------------------------------------------------------------------- Select A Class 1.00% 0.25% 0.00%(3) 1.25% - ---------------------------------------------------------------------------------------------------- Advisor Class 0.75% 0.50% 0.00%(3) 1.25% - ---------------------------------------------------------------------------------------------------- Pro Forma Advisor Class 1.00% 0.25% 0.00%(3) 1.25% - ---------------------------------------------------------------------------------------------------- Strategic Allocation: A Class 0.99% 0.25% 0.00%(4) 1.24% Conservative - ---------------------------------------------------------------------------------------------------- Advisor Class 0.74% 0.50% 0.00%(4) 1.24% - ---------------------------------------------------------------------------------------------------- Pro Forma Advisor Class 0.99% 0.25% 0.00%(4) 1.24% - ---------------------------------------------------------------------------------------------------- Strategic Allocation: A Class 1.05% 0.25% 0.00%(4) 1.30% Moderate - ---------------------------------------------------------------------------------------------------- Advisor Class 0.80% 0.50% 0.00%(4) 1.30% - ---------------------------------------------------------------------------------------------------- Pro Forma Advisor Class 1.05% 0.25% 0.00%(4) 1.30% - ---------------------------------------------------------------------------------------------------- Strategic Allocation: A Class 1.18% 0.25% 0.00%(4) 1.43% Aggressive - ---------------------------------------------------------------------------------------------------- Advisor Class 0.93% 0.50% 0.00%(4) 1.43% - ---------------------------------------------------------------------------------------------------- Pro Forma Advisor Class 1.18% 0.25% 0.00%(4) 1.43% - ---------------------------------------------------------------------------------------------------- Global Growth A Class 1.30% 0.25% 0.01%(5) 1.56% - ---------------------------------------------------------------------------------------------------- Advisor Class 1.05% 0.50% 0.01%(5) 1.56% - ---------------------------------------------------------------------------------------------------- Pro Forma Advisor Class 1.30% 0.25% 0.01%(5) 1.56% - ---------------------------------------------------------------------------------------------------- International Growth A Class 1.25% 0.25% 0.01%(5) 1.51% - ---------------------------------------------------------------------------------------------------- Advisor Class 1.00% 0.50% 0.01%(5) 1.51% - ---------------------------------------------------------------------------------------------------- Pro Forma Advisor Class 1.25% 0.25% 0.01%(5) 1.51% - ---------------------------------------------------------------------------------------------------- (1) THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE, INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor UNDER Management IN THE FUND'S PROSPECTUSES. (2) THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY SERVICES IS THE SAME FOR ALL CLASSES. FOR MORE INFORMATION, See Multiple Class Information and Service, Distribution and Administrative Fees, IN THE FUND'S PROSPECTUSES. (3) OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR. (4) OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, INTEREST, AND FEES AND EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF INVESTMENT IN SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE EQUITY FUNDS OR OTHER POOLED INVESTMENT VEHICLES, WERE LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR. (5) OTHER EXPENSES INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT DIRECTORS AND ITS LEGAL COUNSEL, AS WELL AS INTEREST. OTHER EXPENSES ALSO INCLUDE FEES AND EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF INVESTMENT IN SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE EQUITY FUNDS OR OTHER POOLED INVESTMENT VEHICLES. Fee Examples EXAMPLE The examples in the tables below are intended to help you compare the costs of investing in a Fund with the costs of investing in other mutual funds. Of course, your actual costs may be higher or lower. Assuming you . . . o invest $10,000 in the Fund o redeem all of your shares at the end of the periods shown below o earn a 5% return each year o incur the same operating expenses as shown above .. . . your cost of investing in the Fund would be: FUND NAME CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS - -------------------------------------------------------------------------------------------- Large Company Value A Class $679 $901 $1,139 $1,821(1) - -------------------------------------------------------------------------------------------- Advisor Class $111 $345 $599 $1,322 - -------------------------------------------------------------------------------------------- Pro Forma Advisor Class $679 $901 $1,139 $1,821 - -------------------------------------------------------------------------------------------- Value A Class $694 $944 $1,214 $1,981(1) - -------------------------------------------------------------------------------------------- Advisor Class $126 $392 $678 $1,492 - -------------------------------------------------------------------------------------------- Pro Forma Advisor Class $694 $944 $1,214 $1,981 - -------------------------------------------------------------------------------------------- Select A Class $695 $947 $1,219 $1,991(1) - -------------------------------------------------------------------------------------------- Advisor Class $127 $395 $683 $1,503 - -------------------------------------------------------------------------------------------- Pro Forma Advisor Class $695 $947 $1,219 $1,991 - -------------------------------------------------------------------------------------------- Strategic Allocation: A Class $694 $944 $1,214 $1,981(1) Conservative - -------------------------------------------------------------------------------------------- Advisor Class $126 $392 $678 $1,492 - -------------------------------------------------------------------------------------------- Pro Forma Advisor Class $694 $944 $1,214 $1,981 - -------------------------------------------------------------------------------------------- Strategic Allocation: A Class $699 $962 $1,244 $2,044(1) Moderate - -------------------------------------------------------------------------------------------- Advisor Class $132 $410 $710 $1,558 - -------------------------------------------------------------------------------------------- Pro Forma Advisor Class $699 $962 $1,244 $2,044 - -------------------------------------------------------------------------------------------- Strategic Allocation: A Class $712 $999 $1,308 $2,179(1) Aggressive - -------------------------------------------------------------------------------------------- Advisor Class $145 $450 $777 $1,702 - -------------------------------------------------------------------------------------------- Pro Forma Advisor Class $712 $999 $1,308 $2,179 - -------------------------------------------------------------------------------------------- Global Growth A Class $724 $1,037 $1,371 $2,312(1) - -------------------------------------------------------------------------------------------- Advisor Class $158 $490 $845 $1,843 - -------------------------------------------------------------------------------------------- Pro Forma Advisor Class $724 $1,037 $1,371 $2,312 - -------------------------------------------------------------------------------------------- International Growth A Class $719 $1,022 $1,347 $2,261(1) - -------------------------------------------------------------------------------------------- Advisor Class $153 $475 $819 $1,789 - -------------------------------------------------------------------------------------------- Pro Forma Advisor Class $719 $1,022 $1,347 $2,261 - -------------------------------------------------------------------------------------------- (1) THIS NUMBER INCLUDES THE SALES CHARGE, WHICH IS NOT APPLICABLE TO LOAD-WAIVED A CLASS SHARES. COMPARATIVE PERFORMANCE TABLES AVERAGE ANNUAL TOTAL RETURNS The following tables show the average annual total returns of the A/Advisor Class Funds' A Class and Advisor Class shares. Returns assume the deduction of all sales charges and other fees associated with a particular class. Your actual returns may vary depending on the circumstances of your investment. Return Before Taxes shows the actual change in the value of Fund shares over the periods shown, but does not reflect the impact of taxes on Fund distributions or the sale of Fund shares. The benchmarks are unmanaged indices that have no operating costs and are included in the table for performance comparison. The S&P 500(R) Index is viewed as a broad measure of U.S. stock performance. The Russell 1000(R) Value Index measures the performance of those Russell 1000(R) companies (the 1,000 largest of the 3,000 largest publicly traded U.S. companies, based on total market capitalization) with lower price-to-book ratios and lower forecasted growth rates. The Lipper Multi-Cap Value Index is an index of multicap value funds that have management styles similar to Value. The Russell 3000(R) Value Index measures the performance of the 3,000 largest publicly traded U.S. companies with lower price/book ratios and lower forecasted growth values. LARGE COMPANY VALUE A CLASS(1) ADVISOR CLASS - ------------------------------------------------------------------------------------------------ LIFE OF LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR CLASS(3) 1 YEAR 5 YEARS CLASS(2) - ------------------------------------------------------------------------------------------------ Return Before Taxes 12.56% 15.49% 19.51% 9.46% 10.14% Russell 1000(R) Value Index 22.25% 19.84% 22.25% 10.86% 7.90%(4) (reflects no deduction for fees, expenses or taxes) S&P 500(R) Index 15.79% 15.86% 15.79% 6.19% 1.58%(4) (reflects no deduction for fees, expenses or taxes) - ------------------------------------------------------------------------------------------------ (1) A CLASS RETURNS ASSUME THE DEDUCTION OF THE SALES CHARGE. (2) THE INCEPTION DATE FOR THE ADVISOR CLASS IS OCTOBER 26, 2000. (3) THE INCEPTION DATE FOR THE A CLASS IS JANUARY 31, 2003. (4) SINCE OCTOBER 31, 2000, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. VALUE A CLASS(1) ADVISOR CLASS - ------------------------------------------------------------------------------------------------ LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR OF CLASS(2) 1 YEAR 5 YEARS 10 YEARS - ------------------------------------------------------------------------------------------------ Return Before Taxes 11.47% 15.66% 18.21% 9.63% 10.61% Lipper Multi-Cap Value Index 17.07% 18.43% 17.07% 9.37% 9.55% (reflects no deduction for taxes) S&P 500(R) Index 15.79% 15.86% 15.79% 6.19% 8.42% (reflects no deduction for fees, expenses or taxes) Russell 3000(R) Value Index 22.34% 20.19% 22.34% 11.20% 11.11% (reflects no deduction for fees, expenses or taxes) - ------------------------------------------------------------------------------------------------ (1) A CLASS RETURNS ASSUME THE DEDUCTION OF THE SALES CHARGE. (2) THE INCEPTION DATE FOR THE A CLASS IS JANUARY 31, 2003. SELECT A CLASS(1) ADVISOR CLASS - ------------------------------------------------------------------------------------------------ LIFE OF LIFE OF 1 YEAR CLASS(3) 1 YEAR 5 YEARS CLASS(2) - ------------------------------------------------------------------------------------------------ Return Before Taxes -7.70% 6.32% -2.05% 0.22% 2.64% S&P 500(R) Index 15.79% 15.86% 15.79% 6.19% 6.00%(4) (reflects no deduction for fees, expenses or taxes) - ------------------------------------------------------------------------------------------------ (1) A CLASS RETURNS ASSUME THE DEDUCTION OF THE SALES CHARGE (2) THE INCEPTION DATE FOR THE ADVISOR CLASS IS AUGUST 8, 1997. (3) THE INCEPTION DATE FOR THE A CLASS IS JANUARY 31, 2003. (4) SINCE AUGUST 7, 1997, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. STRATEGIC ALLOCATION: CONSERVATIVE A CLASS(1) ADVISOR CLASS - ------------------------------------------------------------------------------------------------ LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR OF CLASS(2) 1 YEAR 5 YEARS 10 YEARS - ------------------------------------------------------------------------------------------------ Return Before Taxes 2.52% 5.04% 8.67% 5.60% 6.67% S&P 500(R) Index 15.79% 13.40% 15.79% 6.19% 8.42% (reflects no deductions for fees, expenses or taxes) Lehman Brothers U.S. Aggregate Index 4.33% 3.43% 4.33% 5.06% 6.24% (reflects no deductions for fees, expenses or taxes) Citigroup US Broad Investment-Grade 4.33% 3.51% 4.33% 5.10% 6.26% Bond Index(3) 90-Day U.S. Treasury Bill Index 4.67% 3.66% 4.67% 2.34% 3.58% (reflects no deductions for fees, expenses or taxes) - ------------------------------------------------------------------------------------------------ (1) A CLASS RETURNS ASSUME THE DEDUCTION OF THE SALES CHARGE. (2) THE INCEPTION DATE FOR THE A CLASS WAS SEPTEMBER 30, 2004. (3) IN SEPTEMBER 2006, ONE OF THE FUND'S BENCHMARKS WAS CHANGED FROM THE LEHMAN BROTHERS U.S. AGGREGATE INDEX TO THE CITIGROUP US BROAD INVESTMENT-GRADE BOND INDEX. THE FUND'S INVESTMENT ADVISOR BELIEVES THIS INDEX BETTER REPRESENTS THE FUND'S PORTFOLIO COMPOSITION. STRATEGIC ALLOCATION: MODERATE A CLASS(1) ADVISOR CLASS - ---------------------------------------------------------------------------------------------- LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR CLASS(2) 1 YEAR 5 YEARS 10 YEARS - ---------------------------------------------------------------------------------------------- Return Before Taxes 5.67% 8.62% 11.95% 7.56% 8.02% S&P 500 Index 15.79% 13.40% 15.79% 6.19% 8.42% (reflects no deductions for fees, expenses or taxes) Lehman Brothers U.S. Aggregate Index 4.33% 3.43% 4.33% 5.06% 6.24% (reflects no deductions for fees, expenses or taxes) Citigroup US Broad Investment-Grade 4.33% 3.51% 4.33% 5.10% 6.26% Bond Index(3) 90-Day U.S. Treasury Bill Index 4.67% 3.66% 4.67% 2.34% 3.58% (reflects no deductions for fees, expenses or taxes) - ---------------------------------------------------------------------------------------------- (1) A CLASS RETURNS ASSUME THE DEDUCTION OF THE SALES CHARGE. (2) THE INCEPTION DATE FOR THE A CLASS WAS SEPTEMBER 30, 2004. (3) IN SEPTEMBER 2006, ONE OF THE FUND'S BENCHMARKS WAS CHANGED FROM THE LEHMAN BROTHERS U.S. AGGREGATE INDEX TO THE CITIGROUP US BROAD INVESTMENT-GRADE BOND INDEX. THE FUND'S INVESTMENT ADVISOR BELIEVES THIS INDEX BETTER REPRESENTS THE FUND'S PORTFOLIO COMPOSITION. STRATEGIC ALLOCATION: AGGRESSIVE A CLASS(1) ADVISOR CLASS - --------------------------------------------------------------------------------------------- LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR CLASS(2) 1 YEAR 5 YEARS 10 YEARS - --------------------------------------------------------------------------------------------- Return Before Taxes 7.17% 10.72% 13.71% 8.26% 8.69% S&P 500 Index 15.79% 13.40% 15.79% 6.19% 8.42% (reflects no deductions for fees, expenses or taxes) Lehman Brothers U.S. Aggregate Index 4.33% 3.43% 4.33% 5.06% 6.24% (reflects no deductions for fees, expenses or taxes) Citigroup US Broad Investment-Grade 4.33% 3.51% 4.33% 5.10% 6.26% Bond Index(3) 90-Day U.S. Treasury Bill Index 4.67% 3.66% 4.67% 2.34% 3.58% (reflects no deductions for fees, expenses or taxes) - --------------------------------------------------------------------------------------------- (1) A CLASS RETURNS ASSUME THE DEDUCTION OF THE SALES CHARGE. (2) THE INCEPTION DATE FOR THE A CLASS WAS SEPTEMBER 30, 2004. (3) IN SEPTEMBER 2006, ONE OF THE FUND'S BENCHMARKS WAS CHANGED FROM THE LEHMAN BROTHERS U.S. AGGREGATE INDEX TO THE CITIGROUP US BROAD INVESTMENT-GRADE BOND INDEX. THE FUND'S INVESTMENT ADVISOR BELIEVES THIS INDEX BETTER REPRESENTS THE FUND'S PORTFOLIO COMPOSITION. GLOBAL GROWTH A CLASS(1) ADVISOR CLASS - --------------------------------------------------------------------------------------------- LIFE OF LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR CLASS(2) 1 YEAR 5 YEARS CLASS(3) - --------------------------------------------------------------------------------------------- Return Before Taxes 11.06% 12.16% 17.89% 11.23% 10.14% MSCI World Free Index 20.07% 20.81%(4) 20.07% 9.97% 4.52%(5) (reflects no deduction for fees, expenses or taxes) - --------------------------------------------------------------------------------------------- (1) A CLASS RETURNS ASSUME THE DEDUCTION OF THE SALES CHARGE. (2) THE INCEPTION DATE FOR THE A CLASS IS DECEMBER 1, 2005. (3) THE INCEPTION DATE FOR THE ADVISOR CLASS IS FEBRUARY 5, 1999. (4) SINCE NOVEMBER 30, 2005, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. (5) SINCE JANUARY 31, 1999, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. INTERNATIONAL GROWTH A CLASS(1) ADVISOR CLASS - ----------------------------------------------------------------------------------------------- LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR CLASS(2) 1 YEAR 5 YEARS 10 YEARS - ----------------------------------------------------------------------------------------------- Return Before Taxes 17.47% 19.36% 24.71% 10.31% 8.93% MSCI EAFE Index 26.34% 26.29% 26.34% 14.98% 7.71% (reflects no deduction for fees, expenses or taxes) MSCI EAFE Growth Index 22.32% 22.79% 22.32% 12.27% 5.07% (reflects no deduction for fees, expenses or taxes) - ----------------------------------------------------------------------------------------------- (1) A CLASS RETURNS ASSUME THE DEDUCTION OF THE SALES CHARGE. (2) THE INCEPTION DATE FOR THE A CLASS IS JANUARY 31, 2003. For further information on the performance of the Funds, please see "Management's Discussion of Fund Performance" attached hereto as Exhibit B. For further information regarding the financial history of A Class and Advisor Class of the Funds, please see "Financial Highlights" attached hereto as Exhibit C, and your Fund's prospectus. THE BOARDS OF THE A/ADVISOR CLASS FUNDS RECOMMEND THAT YOU VOTE "FOR" THE RECLASSIFICATIONS OF A CLASS SHARES AS ADVISOR CLASS SHARES PROPOSAL 2 - TO APPROVE THE PROPOSED RECLASSIFICATIONS OF C CLASS SHARES AS ADVISOR CLASS SHARES SMALL CAP VALUE, GROWTH AND VISTA (THE "C/ADVISOR CLASS FUNDS") REASONS FOR THE RECLASSIFICATIONS OF C CLASS SHARES AS ADVISOR CLASS SHARES At its meetings on November 29, 2006, and March 7, 2007, the Boards of the C/Advisor Class Funds, authorized, approved and declared it advisable to amend each Corporation's Articles of Incorporation to reflect a Reclassification of all C Class shares of the C/Advisor Class Funds as Advisor Class shares of the same Funds. The Boards of the C/Advisor Class Funds propose the Reclassifications to simplify and standardize the share class structure of the affected Funds. In recommending the Reclassifications, the Boards of the C/Advisor Class Funds considered the consistently low investor demand for and low balance of investments in the C Class shares, and concluded that the Reclassifications would result in a beneficial decrease in the total expense ratio for affected shareholders. Each Reclassification will be a tax-free event under applicable provisions of the Internal Revenue Code, as amended, so that no gain or loss will be recognized by the American Century Funds or the American Century Funds' shareholders. CONSEQUENCES OF THE RECLASSIFICATIONS If shareholders approve the Reclassifications, holders of C Class shares will have their shares reclassified as Advisor Class shares of the same Fund. The net asset value of your investment in a Fund will not change as a result of the Reclassifications. Advisor Class shares have a lower total expense ratio than C Class shares. It is anticipated that there will not be any tax consequences as a result of the Reclassifications. As previously noted, if the Reclassifications are approved, they will be effective on the Closing Date. If one or more of the Reclassifications are not approved by the C Class shareholders, we may consider asking the Boards for authority to liquidate one or more of these C Classes. DESCRIPTION OF THE SHARES Currently, Advisor Class shares have lower total expense ratios than C Class shares. C Class and Advisor Class shares are not subject to a front end sales charge, but C Class shares that are redeemed within one year of purchase are subject to a deferred sales charge of 1.00%. The applicable management and Rule 12b-1 fees for the share classes are as follows: - ----------------- ------------ --------------- --------------- ----------------- TOTAL MANAGEMENT AMERICAN CENTURY AND RULE 12B-1 FUND CLASS MANAGEMENT FEE RULE 12B-1 FEE FEES(1) - ----------------- ------------ --------------- --------------- ----------------- Small Cap Value C 1.25% 1.00% 2.25% - ----------------- ------------ --------------- --------------- ----------------- Advisor 1.00% 0.50% 1.50% - ----------------- ------------ --------------- --------------- ----------------- Growth C 1.00% 1.00% 2.00% - ----------------- ------------ --------------- --------------- ----------------- Advisor 0.75% 0.50% 1.25% - ----------------- ------------ --------------- --------------- ----------------- Vista C 1.00% 1.00% 2.00% - ----------------- ------------ --------------- --------------- ----------------- Advisor 0.75% 0.50% 1.25% - ----------------- ------------ --------------- --------------- ------------------ (1) Does not include "Other Expenses." See Annual Fund Operating Expenses table. The Boards recently approved a proposal to change the fee structure of the Advisor Class. Advisor Class shareholders will receive a separate proxy statement describing this proposal in greater detail and will have an opportunity to vote on it. If approved by the Advisor Class shareholders, the Rule 12b-1 fee of the Advisor Class would be reduced 25 basis points from 0.50% to 0.25% and the corresponding management fee would decrease 25 basis points, resulting in no net change to the total expense ratio. If the shareholders of the Advisor Class do not approve the management fee change, then the Rule 12b-1 fee would remain at 0.50% and the management fee would continue at its current level. The proposed modification to the Advisor Class fee structure would make the class more consistent with industry practice and American Century's internal pricing structure. Irrespective of whether the Advisor Class shareholders pass the proposal, the total annual Fund operating expense will not change. INVESTMENT OBJECTIVES, POLICIES AND RISKS Since the C Class and Advisor Class shares of a Fund represent interests in the same portfolio, they share identical investment objectives, policies, limitations and risks. The investment objectives of the C/Advisor Class Funds are listed in the following table. - --------------------------------------- ---------------------------------------- AMERICAN CENTURY FUND INVESTMENT OBJECTIVE - --------------------------------------- ---------------------------------------- Small Cap Value Seeks long-term capital growth; income is a secondary objective. - --------------------------------------- ---------------------------------------- Growth Seeks long-term capital growth. - --------------------------------------- ---------------------------------------- Vista Seeks long-term capital growth. - --------------------------------------- ---------------------------------------- Reference is hereby made to the C/Advisor Class Funds' prospectuses and statements of additional information, all of which are incorporated herein by reference. These documents set forth in full the investment objectives, policies, and investment limitations of each C/Advisor Class Fund, and include a full discussion of the risks inherent in investments in each C/Advisor Class Fund. PURCHASE, REDEMPTION AND EXCHANGE OF SHARES The following table highlights certain purchase, redemption and exchange features of the C/Advisor Class Funds. - --------------------------- -------------------------------------- -------------------------------------- PURCHASE, REDEMPTION C CLASS ADVISOR CLASS AND EXCHANGE FEATURES - --------------------------- -------------------------------------- -------------------------------------- Initial Sales Charge None Same as C Class (as a percentage of offering price) - --------------------------- -------------------------------------- -------------------------------------- Reductions and Waivers Not Applicable Same as C Class of Initial Sales Charge - --------------------------- -------------------------------------- -------------------------------------- Contingent Deferred A contingent deferred sales Same as C Class Sales Charge (CDSC) charge of 1.00% will be applied to shares redeemed within 12 months of purchase - --------------------------- -------------------------------------- -------------------------------------- Minimum Initial o Employer-sponsored Same as C Class Investment retirement account: No minimum o Broker-Dealer Sponsored Wrap program accounts and/or fee-based accounts: No minimum o Coverdell Education Savings Accounts: $2000 o Financial Intermediaries: $250 o All other accounts: $2500 - --------------------------- -------------------------------------- -------------------------------------- Minimum Subsequent o Financial Intermediaries: Same as C Class Investments No Minimum o Employer-Sponsored Retirement Plans: No Minimum o All other accounts: $50 - --------------------------- -------------------------------------- -------------------------------------- Redemption Fees Not Applicable, other than a $10 Same as C Class charge for redemption requests made by a wire transfer. - --------------------------- -------------------------------------- -------------------------------------- Purchases/Redemptions By mail, fax, telephone, online, in Same as C Class person or automatically. - --------------------------- -------------------------------------- -------------------------------------- Redemption Policies The Fund reserves the right to delay Same as C Class delivery of redemption proceeds up to seven days. Any redemption request made within 15 days of an address change may be required to be submitted in writing with guaranteed signatures of all authorized signers. If bank information is changed, a 15-day holding period may be imposed before the proceeds are wired to the bank. The Fund reserves the right to redeem in kind (i.e., in securities rather than cash) if during any 90-day period you redeem Fund shares worth more than $250,000 or 1% of the value of the Fund's assets if that amount is less than $250,000. If the redemption would exceed this limit and the shareholder would like to avoid being paid in securities, they may provide American Century with an unconditional instruction to redeem at least 15 days prior to the date on which the redemption transaction is to occur. The instruction must specify the dollar amount or number of shares to be redeemed and the date of the transaction. - --------------------------- -------------------------------------- -------------------------------------- Exchanges You may exchange C Class shares of a Because there is no sales charge or Fund for C Class shares of another CDSC on Advisor Class shares, American Century Fund. You may not shareholders may redeem and purchase exchange from the C Class to any shares into the Advisor, Investor, other class. A CDSC will not be or Institutional class shares of charged on shares exchanged another American Century Fund regardless of the length of time you without incurring a sales charge. have owned them. When you redeem However, investors will have to meet shares that have been exchanged, the the applicable minimum initial CDSC will be based on the date you investment when purchasing new purchased the original shares. investments in these Funds. - --------------------------- -------------------------------------- -------------------------------------- COMPARATIVE FEE TABLES The C/Advisor Class Funds, like all mutual funds, incur certain expenses in their operations. These expenses include management fees, as well as the costs of maintaining accounts, administration, providing shareholder liaison and distribution services and other activities. Set forth in the tables below is information regarding fees and expenses of the C/Advisor Class Funds and pro forma fees for the Funds after giving effect to the Reclassifications. SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) FOR ALL FUNDS - -------------------------------------------------------------------------------- C Class Advisor Class Pro Forma Advisor Class - -------------------------------------------------------------------------------- Maximum Deferred Sales Charge (load) 1.00% None None (as a percentage of net asset value) - -------------------------------------------------------------------------------- (1) THE DEFERRED SALES CHARGE IS CONTINGENT ON THE LENGTH OF TIME YOU HAVE OWNED YOUR SHARES. THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE, AND IS ELIMINATED THEREAFTER. ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS) DISTRIBUTION TOTAL ANNUAL MANAGEMENT AND SERVICE OTHER FUND OPERATING FUND NAME CLASS FEE(1) (12B-1) FEES(2) EXPENSES(3) EXPENSES - ------------------------------------------------------------------------------------------------ Small Cap Value C Class 1.25% 1.00% 0.00% 2.25% - ------------------------------------------------------------------------------------------------ Advisor Class(4) 1.00% 0.50% 0.00% 1.50% - ------------------------------------------------------------------------------------------------ Pro Forma Advisor Class 1.00% 0.50% 0.00% 1.50% - ------------------------------------------------------------------------------------------------ Growth C Class 1.00% 1.00% 0.00% 2.00% - ------------------------------------------------------------------------------------------------ Advisor Class(4) 0.75% 0.50% 0.00% 1.25% - ------------------------------------------------------------------------------------------------ Pro Forma Advisor Class 0.75% 0.50% 0.00% 1.25% - ------------------------------------------------------------------------------------------------ Vista C Class 1.00% 1.00% 0.00% 2.00% - ------------------------------------------------------------------------------------------------ Advisor Class(4) 0.75% 0.50% 0.00% 1.25% - ------------------------------------------------------------------------------------------------ Pro Forma Advisor Class 0.75% 0.50% 0.00% 1.25% - ------------------------------------------------------------------------------------------------ (1) THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE, INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor UNDER Management IN THE FUND'S PROSPECTUSES. (2) THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY SERVICES IS THE SAME FOR ALL CLASSES. FOR MORE INFORMATION, SEE Multiple Class Information AND Service, Distribution and Administrative Fees, IN THE FUND'S PROSPECTUSES. (3) OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR. (4) THE BOARDS RECENTLY APPROVED A PROPOSAL TO CHANGE THE FEE STRUCTURE OF THE ADVISOR CLASS. IF APPROVED BY THE ADVISOR CLASS SHAREHOLDERS, THE RULE 12B-1 FEE OF THE ADVISOR CLASS WILL BE REDUCED BY 25 BASIS POINTS AND THE UNIFIED MANAGEMENT FEE WOULD SIMULTANEOUSLY INCREASE 25 BASIS POINTS. IF THE SHAREHOLDERS OF THE ADVISOR CLASS DO NOT APPROVE THE MANAGEMENT FEE CHANGE, THEN THE RULE 12B-1 FEE WOULD REMAIN AT 0.50% AND THE MANAGEMENT FEE WOULD CONTINUE AT ITS CURRENT LEVEL. EXAMPLE The examples in the table below are intended to help you compare the costs of investing in the Fund with the costs of investing in other mutual funds. Of course, your actual costs may be higher or lower. Assuming you . . . o invest $10,000 in the Fund o redeem all of your shares at the end of the periods shown below o earn a 5% return each year o incur the same operating expenses as shown above .. . . your cost of investing in the Fund would be: FUND NAME CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------------------------ Small Cap Value C Class $226 $697 $1,194 $2,558 - ------------------------------------------------------------------------------------- Advisor Class $152 $472 $814 $1,778 ------------------------------------------------------------------------------------ Pro Forma Advisor Class $152 $472 $814 $1,778 ------------------------------------------------------------------------------------ Growth C Class $202 $623 $1,069 $2,305 ------------------------------------------------------------------------------------ Advisor Class $127 $395 $683 $1,503 ------------------------------------------------------------------------------------ Pro Forma Advisor Class $127 $395 $683 $1,503 ------------------------------------------------------------------------------------ Vista C Class $202 $623 $1,069 $2,305 ------------------------------------------------------------------------------------ Advisor Class $127 $395 $683 $1,503 ------------------------------------------------------------------------------------ Pro Forma Advisor Class $127 $395 $683 $1,503 ------------------------------------------------------------------------------------ COMPARATIVE PERFORMANCE TABLES AVERAGE ANNUAL TOTAL RETURNS The following tables show the average annual total returns of the C/Advisor Funds' Advisor Class shares and C Class shares. Your actual returns may vary depending on the circumstances or your investment. Return Before Taxes shows the actual change in the value of fund shares over the periods shown, but does not reflect the impact of taxes on fund distributions or the sale of fund shares. The benchmarks are unmanaged indices that have no operating costs and are included in the table for performance comparison. The Russell 2000(R) Value Index measures the performance of the 2000 smallest of the 3000 largest publicly traded U.S. companies (based on market capitalization) with lower price-to-book ratios and lower forecasted growth values. SMALL CAP VALUE C CLASS ADVISOR CLASS - ------------------------------------------------------------------------------------------------------ LIFE OF LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR 5 YEARS CLASS(1) 1 YEAR 5 YEARS CLASS(2) - ------------------------------------------------------------------------------------------------------ Return Before Taxes 14.46% 11.87% 12.09% 15.28% 12.70% 18.55% Russell 2000(R) Value Index 23.48% 15.37% 14.70%(3) 23.48% 15.37% 16.22% (reflects no deduction for fees, expenses or taxes) - ------------------------------------------------------------------------------------------------------ (1) THE INCEPTION DATE FOR THE C CLASS IS JUNE 1, 2001. (2) THE INCEPTION DATE FOR THE ADVISOR CLASS IS DECEMBER 31, 1999. (3) SINCE MAY 31, 2001, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. GROWTH C CLASS ADVISOR CLASS - ------------------------------------------------------------------------------------------------------ LIFE OF LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR 5 YEARS CLASS(1) 1 YEAR 5 YEARS CLASS(2) - ------------------------------------------------------------------------------------------------------ Return Before Taxes 6.90% 1.71% 1.81% 7.67% 2.45% 5.39% Russell 1000(R) Growth Index 9.07% 2.69% 2.61%(3) 9.07% 2.69% 4.16%(4) (reflects no deduction for fees, expenses or taxes) - ------------------------------------------------------------------------------------------------------ (1) THE INCEPTION DATE FOR THE C CLASS IS NOVEMBER 28, 2001. (2) THE INCEPTION DATE FOR THE ADVISOR CLASS IS JUNE 4, 1997. (3) SINCE NOVEMBER 30, 2001, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. (4) SINCE MAY 31, 1997, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. VISTA C CLASS ADVISOR CLASS - ------------------------------------------------------------------------------------------------------ LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR 5 YEARS CLASS (1) 1 YEAR 5 YEARS 10 YEARS - ------------------------------------------------------------------------------------------------------ Return Before Taxes 8.01% 8.13% 5.71% 8.84% 8.93% 6.44% - ------------------------------------------------------------------------------------------------------ Russell Midcap(R) Growth Index 10.66% 8.22% 7.24%(2) 10.66% 8.22% 8.62% (reflects no deduction for fees, expenses or taxes) - ------------------------------------------------------------------------------------------------------ (1) THE INCEPTION DATE FOR THE C CLASS IS JULY 18, 2001. (2) SINCE JULY 31, 2001, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. For further information on the performance of the Funds, please see "Management's Discussion of Fund Performance" attached hereto as Exhibit B. For further information regarding the financial history of C Class and Advisor Class, please see "Financial Highlights" attached hereto as Exhibit C, and your Fund's prospectus. THE BOARDS OF THE C/ADVISOR CLASS FUNDS RECOMMEND THAT YOU VOTE "FOR" THE RECLASSIFICATIONS OF C CLASS SHARES AS ADVISOR CLASS SHARES PROPOSAL 3 - TO APPROVE THE PROPOSED RECLASSIFICATIONS OF ADVISOR CLASS SHARES AS INVESTOR CLASS SHARES BALANCED, LIFE SCIENCES, AND TECHNOLOGY (THE "ADVISOR/INVESTOR CLASS FUNDS") REASONS FOR THE RECLASSIFICATIONS OF ADVISOR CLASS SHARES AS INVESTOR CLASS SHARES At its meetings on November 29, 2006 and March 7, 2007, the Boards of the Advisor/Investor Class Funds, authorized, approved and declared it advisable to amend each Corporation's Articles of Incorporation to reflect Reclassifications of all Advisor Class shares of the Advisor/Investor Class Funds as Investor Class shares of the same respective Advisor/Investor Class Funds. The Boards of the Advisor/Investor Class Funds propose the Reclassifications to simplify and standardize the share class structure of the affected Funds. In recommending the Reclassifications, the Boards of the Advisor/Investor Class Funds considered the consistently low investor demand for and low balance of investments in the Advisor Class shares, and concluded that the Reclassifications would result in a beneficial decrease in the total expense ratio for affected shareholders. Each Reclassification will be a tax-free event under applicable provisions of the Internal Revenue Code, as amended, so that no gain or loss will be recognized by the American Century Funds or the American Century Funds' shareholders. CONSEQUENCES OF THE RECLASSIFICATIONS If shareholders approve the Reclassifications, holders of Advisor Class shares will have their shares reclassified as Investor Class shares of the same Fund. The net asset value of your investment in a Fund will not change as a result of the Reclassifications. Investor Class shares have a lower total expense ratio than the Advisor Class shares. It is also anticipated that there will not be any tax consequences as a result of the Reclassifications. As previously noted, if the Reclassifications are approved, they will be effective on the Closing Date. If one or more of the Reclassifications are not approved by the Advisor Class shareholders, we may consider asking the Boards for authority to liquidate one or more of these Advisor Classes. DESCRIPTION OF THE SHARES Investor Class shares have lower total expense ratios than Advisor Class shares. Advisor Class and Investor Class shares are not subject to a sales charge. Investor Class shares are subject to a $12.50 semiannual account maintenance fee, which applies only to investors whose total eligible investments with American Century are less than $10,000, but does not affect shares held in a financial intermediary or retirement plan account. The applicable management and Rule 12b-1 fees for the share classes are as follows: - ----------------- ---------- --------------- --------------- ------------------- TOTAL MANAGEMENT AMERICAN CENTURY AND RULE 12B-1 FUND CLASS MANAGEMENT FEE RULE 12B-1 FEE FEES(1) - ----------------- ---------- --------------- --------------- ------------------- Balanced Advisor 0.65% 0.50% 1.15% - ----------------- ---------- --------------- --------------- ------------------- Investor 0.90% None 0.90% - ----------------- ---------- --------------- --------------- ------------------- Life Sciences Advisor 1.10% 0.50% 1.60% - ----------------- ---------- --------------- --------------- ------------------- Investor 1.35% None 1.35% - ----------------- ---------- --------------- --------------- ------------------- Technology Advisor 1.25% 0.50% 1.75% - ----------------- ---------- --------------- --------------- ------------------- Investor 1.50% None 1.50% - ----------------- ---------- ------------------------------- ------------------- (1) Does not include "Other Expenses." See Annual Fund Operating Expenses table. The Boards recently approved a proposal to change the fee structure of the Advisor Class. As an Advisor Class shareholder, you will receive a separate proxy statement describing this proposal in greater detail and will have an opportunity to vote on it. If the fee change proposal is approved by the Advisor Class shareholders, the Rule 12b-1 fee of the Advisor Class would be reduced 25 basis points from 0.50% to 0.25% and the corresponding management fee would simultaneously increase 25 basis points, resulting in no net change in the total expense ratio. If the shareholders of the Advisor Class do not approve the management fee change, then the Rule 12b-1 fee would remain at 0.50% and the management fee would continue at its current level. The proposed modification to the Advisor Class fee structure would make the class more consistent with industry practice and American Century's internal pricing structure. Irrespective of whether the shareholders pass the proposal, the total annual Fund operating expense will not change. INVESTMENT OBJECTIVES, POLICIES AND RISKS Since the Advisor Class and Investor Class shares of a Fund represent interests in the same portfolios, they share identical investment objectives, policies, limitations and risks. The investment objectives of the Advisor/Investor Class Funds are listed in the following table. - --------------------------- ---------------------------------------------------- AMERICAN CENTURY FUND INVESTMENT OBJECTIVE - --------------------------- ---------------------------------------------------- Balanced Seeks long-term capital growth and current income by investing approximately 60% of its assets in equity securities and the remainder in bonds and other fixed-income securities. - --------------------------- ---------------------------------------------------- Life Sciences Seeks capital growth. - --------------------------- ---------------------------------------------------- Technology Seeks capital growth. - --------------------------- ---------------------------------------------------- Reference is hereby made to the Advisor/Investor Class Funds' prospectuses and statements of additional information, all of which are incorporated herein by reference. These documents set forth in full the investment objectives, policies, investment limitations, of each Advisor/Investor Class Fund, and include a full discussion of the risks inherent in investments in each Advisor/Investor Class Fund. PURCHASE, REDEMPTION AND EXCHANGE OF SHARES The following table highlights certain purchase, redemption and exchange features of the Advisor/Investor Class Funds. - ---------------------------- -------------------------------------- -------------------------------------- PURCHASE, REDEMPTION ADVISOR CLASS INVESTOR CLASS AND EXCHANGE FEATURES - ---------------------------- -------------------------------------- -------------------------------------- Initial Sales Charge None Same as Advisor Class (as a percentage of offering price) - ---------------------------- -------------------------------------- -------------------------------------- Reductions and Waivers Not Applicable Same as Advisor Class of Initial Sales Charge - ---------------------------- -------------------------------------- -------------------------------------- Contingent Deferred None Same as Advisor Class Sales Charge (CDSC) - ---------------------------- -------------------------------------- -------------------------------------- Minimum Initial Investment o Employer-sponsored Same as Advisor Class retirement account: No minimum o Broker-Dealer Sponsored Wrap program accounts and/or fee-based accounts: No minimum o Coverdell Education Savings Accounts: $2000 o Financial Intermediaries: $250 o All other accounts: $2500 - ---------------------------- -------------------------------------- -------------------------------------- Minimum Subsequent o Financial Intermediaries: Same as Advisor Class Investments No Minimum o Employer-Sponsored Retirement Plans: No Minimum o All other accounts: $50 - ---------------------------- -------------------------------------- -------------------------------------- Redemption Fees Not Applicable, other than a $10 Same as Advisor Class charge for redemption requests made by a wire transfer. - ---------------------------- -------------------------------------- -------------------------------------- Maintenance Fee Not Applicable $12.50 semiannual fee applies to investors whose total eligible investments with American Century are less than $10,000. (See the Fund's prospectus for further information.) This fee is not applicable to shares held in a financial intermediary or retirement plan account. - ---------------------------- -------------------------------------- -------------------------------------- Purchases/Redemptions By mail, fax, telephone, online, in Same as Advisor Class person or automatically. - ---------------------------- -------------------------------------- -------------------------------------- Redemption Policies The Fund reserves the right to delay Same as Advisor Class delivery of redemption proceeds up to seven days. Any redemption request made within 15 days of an address change may be required to be submitted in writing with guaranteed signatures of all authorized signers. If bank information is changed, a 15-day holding period may be imposed before the proceeds are wired to the bank. The Fund reserves the right to redeem in kind (i.e., in securities rather than cash) if during any 90-day period you redeem Fund shares worth more than $250,000 or 1% of the value of the Fund's assets if that amount is less than $250,000. If the redemption would exceed this limit and the shareholder would like to avoid being paid in securities, they may provide American Century with an unconditional instruction to redeem at least 15 days prior to the date on which the redemption transaction is to occur. The instruction must specify the dollar amount or number of shares to be redeemed and the date of the transaction. - ---------------------------- -------------------------------------- -------------------------------------- Exchanges Because there is no sales charge or Same as Advisor Class CDSC on this class, shareholders may redeem and purchase shares into any other Advisor, Investor, or Institutional share class without incurring a sales charge. However, investors will have to meet the applicable minimum initial investment when purchasing new investments in these share classes. - ---------------------------- -------------------------------------- -------------------------------------- COMPARATIVE FEE TABLES The Advisor/Investor Class Funds, like all mutual funds, incur certain expenses in their operations. These expenses include management fees, as well as the costs of maintaining accounts, administration, providing shareholder liaison and distribution services and other activities. Set forth in the tables below is information regarding fees and expenses of the Advisor/Investor Class Funds and pro forma fees for the Funds after giving effect to the Reclassifications. SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) FOR ALL FUNDS - -------------------------------------------------------------------------------- Advisor Class Investor Class Pro Forma Investor Class - -------------------------------------------------------------------------------- Maximum Account Maintenance Fee None $25(1) $25(1) - -------------------------------------------------------------------------------- (1) APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH AMERICAN CENTURY ARE LESS THAN $10,000. SEE ACCOUNT MAINTENANCE FEE UNDER INVESTING DIRECTLY WITH AMERICAN CENTURY IN THE FUND'S PROSPECTUSES FOR MORE DETAILS. THE FEE IS NOT APPLICABLE TO SHARES HELD IN A FINANCIAL INTERMEDIARY OR RETIREMENT PLAN ACCOUNT. ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS) DISTRIBUTION TOTAL ANNUAL MANAGEMENT AND SERVICE OTHER FUND OPERATING FUND NAME CLASS FEE(1) (12B-1) FEES(2) EXPENSES EXPENSES - --------------------------------------------------------------------------------------------------- Balanced Advisor Class 0.65% 0.50% 0.00%(3) 1.15% - --------------------------------------------------------------------------------------------------- Investor 0.90% None 0.00%(3) 0.90% - --------------------------------------------------------------------------------------------------- Pro Forma Investor 0.90% None 0.00%(3) 0.90% - --------------------------------------------------------------------------------------------------- Life Sciences Advisor Class 1.10%(4) 0.50% 0.01%(5) 1.61% - --------------------------------------------------------------------------------------------------- Investor Class 1.35%(4) None 0.01%(5) 1.36% - --------------------------------------------------------------------------------------------------- Pro Forma Investor Class 1.35%(4) None 0.01%(5) 1.36% - --------------------------------------------------------------------------------------------------- Technology Advisor Class 1.25% 0.50% 0.01%(6) 1.76% - --------------------------------------------------------------------------------------------------- Investor Class 1.50% None 0.01%(6) 1.51% - --------------------------------------------------------------------------------------------------- Pro Forma Investor Class 1.50% None 0.01%(6) 1.51% - --------------------------------------------------------------------------------------------------- (1) THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE, INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor UNDER Management in the Fund's prospectuses. (2) THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. IN ADDITION, HALF OF THE ADVISOR CLASS 12B-1 FEE (0.25%) IS FOR ONGOING RECORDKEEPING AND ADMINISTRATIVE SERVICES PROVIDED BY FINANCIAL INTERMEDIARIES, WHICH WOULD OTHERWISE BE PAID BY THE ADVISOR OUT OF THE UNIFIED MANAGEMENT FEE. THE ADVISOR HAS REDUCED ITS UNIFIED MANAGEMENT FEE BY 0.25% FOR ADVISOR CLASS SHARES, BUT THE FEE FOR CORE INVESTMENT ADVISORY SERVICES IS THE SAME FOR ALL CLASSES. FOR MORE INFORMATION, SEE Multiple Class Information AND Service, Distribution and Administrative Fees, IN THE FUND'S PROSPECTUSES. (3) OTHER EXPENSES, WHICH INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST, WERE LESS THAN 0.005% FOR THE MOST RECENT FISCAL YEAR. (4) THE EXPENSE INFORMATION HAS BEEN RESTATED TO REFLECT THE CURRENT MANAGEMENT FEE AMOUNT, WHICH WAS REDUCED EFFECTIVE AUGUST 1, 2006. (5) OTHER EXPENSES INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT DIRECTORS AND THEIR LEGAL COUNSEL, AS WELL AS INTEREST. OTHER EXPENSES ALSO INCLUDE FEES AND EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF INVESTMENT IN SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE EQUITY FUNDS OR OTHER POOLED INVESTMENT VEHICLES. (6) OTHER EXPENSES INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT DIRECTORS AND ITS LEGAL COUNSEL, AS WELL AS INTEREST. EXAMPLE The examples in the table below are intended to help you compare the costs of investing in the Fund with the costs of investing in other mutual funds. Of course, your actual costs may be higher or lower. Assuming you . . . o invest $10,000 in the Fund o redeem all of your shares at the end of the periods shown below o earn a 5% return each year o incur the same operating expenses as shown above .. . . your cost of investing in the Fund would be: FUND NAME CLASS 1 YEAR 3 YEARS 5 YEARS 10 YEARS - ---------------------------------------------------------------------------------- Balanced Advisor Class $117 $364 $630 $1,390 - ---------------------------------------------------------------------------------- Investor Class $92 $286 $497 $1,104 - ---------------------------------------------------------------------------------- Pro Forma Investor Class $92 $286 $497 $1,104 - ---------------------------------------------------------------------------------- Life Sciences Advisor Class $163 $505 $871 $1,897 - ---------------------------------------------------------------------------------- Investor Class $138 $429 $741 $1,625 - ---------------------------------------------------------------------------------- Pro Forma Investor Class $138 $429 $741 $1,625 - ---------------------------------------------------------------------------------- Technology Advisor Class $178 $551 $948 $2,056 - ---------------------------------------------------------------------------------- Investor Class $153 $475 $819 $1,789 - ---------------------------------------------------------------------------------- Pro Forma Investor Class $153 $475 $819 $1,789 - ---------------------------------------------------------------------------------- COMPARATIVE PERFORMANCE TABLES AVERAGE ANNUAL TOTAL RETURNS The following table shows the average annual total returns of the Investor/Advisor Funds' Investor Class and Advisor Class shares. Return Before Taxes shows the actual change in the value of Fund shares over the time periods shown, but does not reflect the impact of taxes on Fund distributions or the sale of Fund shares. The benchmarks are unmanaged indices that have no operating costs and are included in each table for performance comparison. BALANCED ADVISOR CLASS INVESTOR CLASS - -------------------------------------------------------------------------------------------------- LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR 5 YEARS CLASS(1) 1 YEAR 5 YEARS 10 YEARS - -------------------------------------------------------------------------------------------------- Return Before Taxes 9.36% 6.14% 6.33% 9.63% 6.39% 6.70% New Blended Index(2) 11.11% 6.00% 7.89%(3) 11.11% 6.00% 7.89% (reflects no deduction for fees, expenses or taxes) Old Blended Index 11.11% 5.98% 7.88%(3) 11.11% 5.98% 7.88% (reflects no deduction for fees, expenses or taxes) S&P 500(R) Index 15.79% 6.19% 8.42%(3) 15.79% 6.19% 8.42% (reflects no deduction for fees, expenses or taxes) Citigroup US Broad Investment- 4.33% 5.10% 6.26%(3) 4.33% 5.10% 6.26% Grade Bond Index(2) (reflects no deduction for fees, expenses or taxes) Lehman Brothers U.S. Aggregate Index 4.33% 5.06% 6.24%(3) 4.33% 5.06% 6.24% (reflects no deduction for fees, expenses or taxes) - -------------------------------------------------------------------------------------------------- (1) THE INCEPTION DATE FOR THE ADVISOR CLASS IS JANUARY 6, 1997. ONLY CLASSES WITH PERFORMANCE HISTORY FOR LESS THAN 10 YEARS SHOW RETURNS FOR LIFE OF CLASS. (2) IN SEPTEMBER 2006, THE FUND'S BLENDED INDEX CHANGED. THE OLD BLENDED INDEX WAS REPRESENTED BY 60% OF THE S&P 500 INDEX AND THE REMAINING 40% WAS REPRESENTED BY THE LEHMAN BROTHERS U.S. AGGREGATE INDEX. THE NEW BLENDED INDEX IS REPRESENTED BY 60% OF THE S&P 500 INDEX AND THE REMAINING 40% IS REPRESENTED BY THE CITIGROUP US BROAD INVESTMENT-GRADE BOND INDEX. THE FUND'S INVESTMENT ADVISOR BELIEVES THIS INDEX BETTER REPRESENTS THE FUND'S PORTFOLIO COMPOSITION. (3) SINCE DECEMBER 31, 1996, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. LIFE SCIENCES ADVISOR CLASS INVESTOR CLASS - -------------------------------------------------------------------------------------------------- LIFE OF LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR 5 YEARS CLASS(1) 1 YEAR 5 YEARS CLASS(2) - -------------------------------------------------------------------------------------------------- Return Before Taxes -2.26% 1.20% -0.50% -2.05% 1.47% 1.18% S&P 500 Index 15.79% 6.19% 1.58%(3) 15.79% 6.19% 1.28% (reflects no deduction for fees, expenses or taxes) S&P Composite 1500 Health Care Index 6.97% 2.53% 1.07%(3) 6.97% 2.53% 1.61% (reflects no deduction for fees, expenses or taxes) - --------------------------------------------------------------------------------------------------- (1) THE INCEPTION DATE FOR THE ADVISOR CLASS IS NOVEMBER 14, 2000. (2) THE INCEPTION DATE FOR THE INVESTOR CLASS IS JUNE 30, 2000. (3) SINCE OCTOBER 31, 2000, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. TECHNOLOGY ADVISOR CLASS INVESTOR CLASS - -------------------------------------------------------------------------------------------------- LIFE OF LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR 5 YEARS CLASS(1) 1 YEAR 5 YEARS CLASS(1) - -------------------------------------------------------------------------------------------------- Return Before Taxes 4.14% -0.71% -12.71% 4.42% -0.44% -12.46% S&P 500 Index 15.79% 6.19% 1.28% 15.79% 6.19% 1.28% (reflects no deduction for fees, expenses or taxes) S&P Composite 1500 Technology Index 9.02% 0.91% -10.47% 9.02% 0.91% -10.47% (reflects no deduction for fees, expenses or taxes) - --------------------------------------------------------------------------------------------------- (1) THE INCEPTION DATE FOR THE INVESTOR AND ADVISOR CLASS IS JUNE 30, 2000. For further information on the performance of the Funds, please see "Management's Discussion of Fund Performance" attached hereto as Exhibit B. For further information regarding the financial history of Advisor Class and Investor Class, please see "Financial Highlights" in your Fund's prospectus. THE BOARDS OF THE ADVISOR/INVESTOR CLASS FUNDS RECOMMEND THAT YOU VOTE "FOR" THE RECLASSIFICATIONS OF ADVISOR CLASS SHARES AS INVESTOR CLASS SHARES PROPOSAL 4 - TO APPROVE THE PROPOSED RECLASSIFICATION OF C CLASS SHARES AS INVESTOR CLASS SHARES LIFE SCIENCES REASONS FOR THE RECLASSIFICATION OF C CLASS SHARES AS INVESTOR CLASS SHARES At its meetings on November 29, 2006, and March 7, 2007, the Board of Directors of American Century World Mutual Funds, Inc., authorized, approved and declared it advisable to amend the Corporation's Articles of Incorporation to reflect a Reclassification of all C Class shares of Life Sciences to Investor Class shares of Life Sciences. The Board proposes the Reclassification to simplify and standardize the share class structure of the Fund. In recommending the Reclassification, the Board considered the consistently low investor demand for and low balance of investments in the Fund's C Class shares, and concluded that the Reclassification would result in a beneficial decrease in the total expense ratio for affected shareholders. Each Reclassification will be a tax-free event under applicable provisions of the Internal Revenue Code, as amended, so that no gain or loss will be recognized by the American Century Funds or the American Century Funds' shareholders. CONSEQUENCES OF THE RECLASSIFICATION If shareholders approve the Reclassification, holders of C Class shares will have their shares reclassified as Investor Class shares of the same Fund. The net asset value of your investment in the Fund will not change as a result of the Reclassification. Investor Class shares have a lower total expense ratio than the C Class shares. It is anticipated that there will not be any tax consequences as a result of the Reclassification. As previously noted, if the Reclassification is approved, it will be effective on the Closing Date. If the Reclassification is not approved by the C Class shareholders, we may consider asking the Board for authority to liquidate the C Class. DESCRIPTION OF THE SHARES The Investor Class shares have a lower total expense ratio than the C Class shares. C Class and Investor Class shares are not subject to a front end sales charge, but C Class shares that are redeemed within one year of purchase are subject to a deferred sales charge of 1.00%. Investor Class shares are subject to a $12.50 semiannual account maintenance fee, which applies only to investors whose total eligible investments with American Century are less than $10,000, but does not affect shares held in a financial intermediary or retirement plan account. The applicable management and Rule 12b-1 fees are as follows: - ---------------- ----------------- --------------- ----------------------- TOTAL OF MANAGEMENT FEE CLASS MANAGEMENT FEE RULE 12B-1 FEE AND RULE 12B-1 FEE(1) - ---------------- ----------------- --------------- ----------------------- C 1.35% 1.00% 2.35% - ---------------- ----------------- --------------- ----------------------- Investor 1.35% None 1.35% - ---------------- ----------------- --------------- ----------------------- (1) Does not include "Other Expenses." See Annual Fund Operating Expenses table. INVESTMENT OBJECTIVES, POLICIES AND RISKS Life Sciences seeks capital growth. Since the C Class and Investor Class shares represent interests in the same portfolio, they share identical investment objectives, policies, limitations and risks. Reference is hereby made to the Fund's prospectus and statement of additional information, each of which is incorporated herein by reference. These documents set forth in full the Fund's investment objectives, policies, and investment limitations, and include a full discussion of the risks inherent in the Fund's investments. PURCHASE, REDEMPTION AND EXCHANGE OF SHARES The following table highlights certain purchase, redemption and exchange features of the C Class and Investor Class shares of the Fund. - ------------------------------- -------------------------------------- -------------------------------------- PURCHASE, REDEMPTION C CLASS INVESTOR CLASS AND EXCHANGE FEATURES - ------------------------------- -------------------------------------- -------------------------------------- Initial Sales Charge None Same as C Class (as a percentage of offering price) - ------------------------------- -------------------------------------- -------------------------------------- Reductions and Waivers Not Applicable Same as C Class of Initial Sales Charge - ------------------------------- -------------------------------------- -------------------------------------- Contingent Deferred o A contingent deferred sales None Sales Charge (CDSC) charge of 1.00% will be applied to shares redeemed within 12 months of purchase - ------------------------------- -------------------------------------- -------------------------------------- Minimum Initial Investment o Employer-sponsored Same as C Class retirement account: No minimum o Broker-Dealer Sponsored Wrap program accounts and/or fee-based accounts: No minimum o Coverdell Education Savings Accounts: $2000 o Financial Intermediaries: $250 o All other accounts: $2500 - ------------------------------- -------------------------------------- -------------------------------------- Minimum Subsequent Investments o Financial Intermediaries: Same as C Class No Minimum o Employer-Sponsored Retirement Plans: No Minimum o All other accounts: $50 - ------------------------------- -------------------------------------- -------------------------------------- Redemption Fees Not Applicable, other than a $10 Same as C Class charge for redemption requests made by a wire transfer. - ------------------------------- -------------------------------------- -------------------------------------- Maintenance Fee Not Applicable $12.50 semiannual fee applies to investors whose total eligible investments with American Century are less than $10,000. (See the Fund's prospectus for further information.) This fee is not applicable to shares held in a financial intermediary or retirement plan account. - ------------------------------- -------------------------------------- -------------------------------------- Purchases/Redemptions By mail, fax, telephone, online, in Same as C Class person or automatically. - ------------------------------- -------------------------------------- -------------------------------------- Redemption Policies The Fund reserves the right to delay Same as C Class delivery of redemption proceeds up to seven days. Any redemption request made within 15 days of an address change may be required to be submitted in writing with guaranteed signatures of all authorized signers. If bank information is changed, a 15-day holding period may be imposed before the proceeds are wired to the bank. The Fund reserves the right to redeem in kind (i.e. in securities rather than cash) if during any 90-day period you redeem Fund shares worth more than $250,000 or 1% of the value of the Fund's assets if that amount is less than $250,000. If the redemption would exceed this limit and the shareholder would like to avoid being paid in securities, they may provide American Century with an unconditional instruction to redeem at least 15 days prior to the date on which the redemption transaction is to occur. The instruction must specify the dollar amount or number of shares to be redeemed and the date of the transaction. - ------------------------------- -------------------------------------- -------------------------------------- Exchanges You may exchange C Class shares of a Because there is no sales charge or Fund for C Class shares of another CDSC on Investor Class shares, American Century Advisor Fund (a shareholders may redeem and purchase Fund that offers A, B and C Class shares into any other Advisor, shares). You may not exchange from Investor, or Institutional share the C Class to any other class. A class without incurring a sales CDSC will not be charged on shares charge. However, investors will exchanged regardless of the length have to meet the applicable minimum of time you have owned them. When initial investment when purchasing you redeem shares that have been new investments in these share exchanged, the CDSC will be based on classes. the date you purchased the original shares. - ------------------------------- -------------------------------------- -------------------------------------- COMPARATIVE FEE TABLE Life Sciences, like all mutual funds, incurs certain expenses in its operations. These expenses include management fees, as well as the costs of maintaining accounts, administration, providing shareholder liaison and distribution services and other activities. Set forth in the tables below is information regarding fees and expenses of Life Sciences and pro forma fees for the Fund after giving effect to the Reclassification. SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) - -------------------------------------------------------------------------------- PRO FORMA C INVESTOR INVESTOR CLASS CLASS CLASS - -------------------------------------------------------------------------------- Maximum Deferred Sales Charge (load) 1.00%(1) None None (as a percentage of net asset value) - -------------------------------------------------------------------------------- Maximum Account Maintenance Fee None $25(2) $25(2) - -------------------------------------------------------------------------------- (1) THE DEFERRED SALES CHARGE IS CONTINGENT ON THE LENGTH OF TIME YOU HAVE OWNED YOUR SHARES. THE CHARGE IS 1.00% DURING THE FIRST YEAR AFTER PURCHASE AND IS ELIMINATED THEREAFTER. (2) APPLIES ONLY TO INVESTORS WHOSE TOTAL ELIGIBLE INVESTMENTS WITH AMERICAN CENTURY ARE LESS THAN $10,000. SEE ACCOUNT MAINTENANCE FEE UNDER INVESTING DIRECTLY WITH AMERICAN CENTURY IN THE FUND'S PROSPECTUS FOR MORE DETAILS. THE FEE IS NOT APPLICABLE TO SHARES HELD IN A FINANCIAL INTERMEDIARY OR RETIREMENT PLAN ACCOUNT. ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS) DISTRIBUTION TOTAL ANNUAL MANAGEMENT AND SERVICE OTHER FUND OPERATING FEE(1)(2) (12B-1) FEES(3) EXPENSES(4) EXPENSES - ----------------------------------------------------------------------------------------------- Life Sciences C Class 1.35% 1.00% 0.01% 2.36% - ----------------------------------------------------------------------------------------------- Investor Class 1.35% None 0.01% 1.36% - ----------------------------------------------------------------------------------------------- Pro Forma Investor Class 1.35% None 0.01% 1.36% - ----------------------------------------------------------------------------------------------- (1) THE FUND PAYS THE ADVISOR A SINGLE, UNIFIED MANAGEMENT FEE FOR ARRANGING ALL SERVICES NECESSARY FOR THE FUND TO OPERATE. THE FEE SHOWN IS BASED ON ASSETS DURING THE FUND'S MOST RECENT FISCAL YEAR. THE FUND HAS A STEPPED FEE SCHEDULE. AS A RESULT, THE FUND'S UNIFIED MANAGEMENT FEE RATE GENERALLY DECREASES AS STRATEGY ASSETS INCREASE AND INCREASES AS STRATEGY ASSETS DECREASE. FOR MORE INFORMATION ABOUT THE UNIFIED MANAGEMENT FEE, INCLUDING AN EXPLANATION OF STRATEGY ASSETS, SEE The Investment Advisor UNDER Management IN THE FUND'S PROSPECTUSES. (2) THE EXPENSE INFORMATION HAS BEEN RESTATED TO REFLECT THE CURRENT MANAGEMENT FEE AMOUNT, WHICH WAS REDUCED EFFECTIVE AUGUST 1, 2006. (3) THE 12B-1 FEE IS DESIGNED TO PERMIT INVESTORS TO PURCHASE SHARES THROUGH BROKER-DEALERS, BANKS, INSURANCE COMPANIES AND OTHER FINANCIAL INTERMEDIARIES. THE FEE MAY BE USED TO COMPENSATE SUCH FINANCIAL INTERMEDIARIES FOR DISTRIBUTION AND OTHER SHAREHOLDER SERVICES. FOR MORE INFORMATION, SEE Multiple Class Information AND Service, Distribution and Administrative Fees, IN THE FUND'S PROSPECTUSES. (4) OTHER EXPENSES INCLUDE THE FEES AND EXPENSES OF THE FUND'S INDEPENDENT DIRECTORS AND ITS LEGAL COUNSEL, AS WELL AS INTEREST. OTHER EXPENSES ALSO INCLUDE FEES AND EXPENSES INCURRED INDIRECTLY BY THE FUND AS A RESULT OF INVESTMENT IN SHARES OF ONE OR MORE MUTUAL FUNDS, HEDGE FUNDS, PRIVATE EQUITY FUNDS OR OTHER POOLED INVESTMENT VEHICLES. EXAMPLE The examples in the table below are intended to help you compare the costs of investing in the Fund with the costs of investing in other mutual funds. Of course, your actual costs may be higher or lower. Assuming you . . . o invest $10,000 in the Fund o redeem all of your shares at the end of the periods shown below o earn a 5% return each year o incur the same operating expenses as shown above .. . . your cost of investing in the Fund would be: 1 YEAR 3 YEARS 5 YEARS 10 YEARS - -------------------------------------------------------------------------------- Life Sciences C Class $237 $730 $1,249 $2,666 - -------------------------------------------------------------------------------- Investor Class $138 $429 $741 $1,625 - -------------------------------------------------------------------------------- Pro Forma Investor Class $138 $429 $741 $1,625 - -------------------------------------------------------------------------------- COMPARATIVE PERFORMANCE TABLE AVERAGE ANNUAL TOTAL RETURNS The following table shows the average annual total returns of the Life Sciences Investor and C Class shares. Return Before Taxes shows the actual change in the value of Fund shares over the time periods shown, but does not reflect the impact of taxes on Fund distributions or the sale of Fund shares. The benchmarks are unmanaged indices that have no operating costs and are included in each table for performance comparison. LIFE SCIENCES C CLASS INVESTOR CLASS - -------------------------------------------------------------------------------------------------- LIFE OF LIFE OF FOR PERIODS ENDED DECEMBER 31, 2006 1 YEAR 5 YEARS CLASS(1) 1 YEAR 5 YEARS CLASS(2) - -------------------------------------------------------------------------------------------------- Return Before Taxes -3.10% 0.45% 0.52% -2.05% 1.47% 1.18% S&P 500(R) Index 15.79% 6.19% 6.27%(3) 15.79% 6.19% 1.28% (reflects no deduction for fees, expenses or taxes) S&P Composite 1500 Health Care Index 6.97% 2.53% 1.95%(3) 6.97% 2.53% 1.61% (reflects no deduction for fees, expenses or taxes) ------------------------------------------------------------------------------------------------- (1) THE INCEPTION DATE FOR THE C CLASS IS NOVEMBER 29, 2001. (2) THE INCEPTION DATE FOR THE INVESTOR CLASS IS JUNE 30, 2000. (3) SINCE NOVEMBER 30, 2001, THE DATE CLOSEST TO THE CLASS'S INCEPTION FOR WHICH DATA IS AVAILABLE. For further information on the performance of the Funds, please see "Management's Discussion of Fund Performance" attached hereto as Exhibit B. For further information regarding the financial history of C Class and Investor Class, please see "Financial Highlights" in your Fund's prospectus. THE BOARD OF LIFE SCIENCES RECOMMENDS THAT YOU VOTE "FOR" THE RECLASSIFICATION OF C CLASS SHARES AS INVESTOR CLASS SHARES INFORMATION ABOUT THE RECLASSIFICATIONS TERMS OF THE RECLASSIFICATIONS If shareholders of the A/Advisor Class Funds approve the proposed Reclassifications, all of the A Class shares of each Fund will be reclassified as Advisor Class shares of the same Funds. If shareholders of the C/Advisor Class Funds approve the proposed Reclassifications, all of the C Class shares of the Funds will be reclassified as Advisor Class shares of the same Funds. If shareholders of the Advisor/Investor Class Funds approve the proposed Reclassifications, all of the Advisor Class shares of the Funds will be reclassified as Investor Class shares of the same Funds. If shareholders of Life Sciences approve the proposed Reclassifications, all of the C Class shares of Life Sciences will be reclassified as Investor Class shares of the Fund. If all of the requisite approvals are obtained, it is anticipated that the Reclassifications in Proposal 1 will be consummated at the close of business on August 31, 2007, or on such other date as American Century may decide. It is anticipated that the Reclassifications in Proposals 2, 3 and 4 will be consummated at the close of business on November 30, 2007, or on such other date American Century may decide. A form of amendment to the Corporations' Articles of Incorporation is attached hereto as Exhibit A. COSTS OF THE RECLASSIFICATIONS The expenses of the Reclassifications will be paid by American Century. Reclassification expenses include: (a) expenses associated with the preparation and filing of this Proxy Statement/Prospectus; (b) postage; (c) printing; (d) accounting fees; (e) legal fees incurred in the preparation of the Proxy Statement/Prospectus; (f) solicitation costs; and (g) other related administrative or operational costs. Any registration or licensing fee will be borne by the American Century Fund incurring such fee. REASONS FOR THE RECLASSIFICATIONS At its meetings on November 29, 2006, and March 7, 2007, the Boards of the affected Funds authorized, approved and declared it advisable to amend the Articles of Incorporation of the Funds to reflect the proposed Reclassifications. In recommending the Reclassifications, the Boards of the A/Advisor Class Funds considered the similarity in the total fees charged to the A Class and the Advisor Class and concluded that the Reclassifications would simplify and standardize the Funds' share class structure. The Boards of the C/Advisor Class Funds, the Advisor/Investor Class Funds, and Life Sciences considered the consistently low investor demand for and low balance of investments in the C Class shares, and concluded that the Reclassifications would result in a beneficial decrease in the total expense ratio for affected shareholders. FEDERAL INCOME TAX CONSEQUENCES Based on the existing provisions of the Internal Revenue Code of 1986, as amended, current administrative rules and court decisions, for federal income tax purposes, the Reclassifications of the American Century Funds will not result in any tax consequences to shareholders of the affected Funds. DESCRIPTION OF THE FUND SHARES Shares in the A, C and Advisor Classes are intended for participants in employer-sponsored retirement plans and those investors purchasing through financial intermediaries that provide administrative and distribution services. Investor Class shares are available through financial intermediaries that provide various administrative services, but also may be purchased directly from American Century rather than investing through a financial intermediary. A Class shares are subject to a maximum 5.75% sales charge unless a waiver applies. For a more detailed discussion of the Funds' policies regarding waivers of the sales charge, see "Description of Fund Shares--Reduction and Waivers of Sales Charges for A Class Shares." CALCULATION OF SALES CHARGES FOR A CLASS SHARES Although shares in the A Class and Advisor Class each represent an interest in the Fund, each has a different cost structure. A Class shares are sold at their offering price, which is net asset value plus an initial sales charge, unless they are offered in a plan or program that is subject to a waiver of the sales charge, as discussed below. This sales charge varies depending on the amount invested, and is deducted from your purchase before it is invested. The sales charges and amounts paid to your financial professional are detailed in the table below: - ------------------------- -------------- --------------- ----------------------- PURCHASE AMOUNT SALES CHARGE SALES CHARGE AMOUNT PAID TO FINANCIAL AS A % OF AS A % OF NET PROFESSIONAL AS A % OFFERING PRICE AMOUNT INVESTED OF OFFERING PRICE - ------------------------ -------------- --------------- ------------------------ Less than $50,000 5.75% 6.10% 5.00% - ------------------------ -------------- --------------- ------------------------ $50,000 - $99,999 4.75% 4.99% 4.00% - ------------------------ -------------- --------------- ------------------------ $100,000 - $249,999 3.75% 3.90% 3.25% - ------------------------ -------------- --------------- ------------------------ $250,000 - $499,999 2.50% 2.56% 2.00% - ------------------------ -------------- --------------- ------------------------ $500,000 - $999,999 2.00% 2.04% 1.75% - ------------------------ -------------- --------------- ------------------------ $1,000,000 - $3,999,999 0.00% 0.00% 1.00%(1) - ------------------------ -------------- --------------- ------------------------ $4,000,000 - $9,999,999 0.00% 0.00% 0.50%(1) - ------------------------ -------------- --------------- ------------------------ $10,000,000 or more 0.00% 0.00% 0.25%(1) - ------------------------ -------------- --------------- ------------------------ (1) FOR PURCHASES OVER $1,000,000 BY QUALIFIED RETIREMENT PLANS, NO UPFRONT AMOUNT WILL BE PAID TO FINANCIAL PROFESSIONALS. There is no front-end sales charge for purchases of $1,000,000 or more, but if you redeem your shares within one year of purchase you will pay a 1.00% deferred sales charge, subject to the exceptions listed below in the section entitled "Reductions and Waivers of Sales Charges for A Class Shares." REDUCTIONS AND WAIVERS OF SALES CHARGES FOR A CLASS SHARES You may qualify for a reduction or waiver of certain sales charges, but you or your financial professional must provide certain information, including the account numbers of any accounts to be aggregated, to American Century at the time of purchase in order to take advantage of such reduction or waiver. You and your immediate family (your spouse and your children under the age of 21) may combine investments to reduce I Class sales charge in the following ways: ACCOUNT AGGREGATION. Investments made by you and your immediate family may be aggregated at each account's current market value if made for your own account(s) and/or certain other accounts, such as: o Certain trust accounts o Solely controlled business accounts o Single-participant retirement plans o Endowments or foundations established and controlled by you or an immediate family member For purposes of aggregation, only investments made through individual-level accounts, rather than accounts aggregated at the intermediary level, may be included. CONCURRENT PURCHASES. You may combine simultaneous purchases in A, B or C Class shares of any two or more American Century Advisor Funds (Funds that offer A, B and C Class shares) to qualify for a reduced A Class sales charge. RIGHTS OF ACCUMULATION. You may take into account the current value of your existing holdings in A, B or C Class shares of any American Century Advisor Fund to determine I Class sales charge. LETTER OF INTENT. A Letter of Intent allows you to combine all non-money market fund purchases of all A, B and C Class shares you intend to make over a 13-month period to determine the applicable sales charge. At your request, existing holdings may be combined with new purchases and sales charge amounts may be adjusted for purchases made within 90 days prior to our receipt of the Letter of Intent. Capital appreciation, capital gains and reinvested dividends earned during the Letter of Intent period do not apply toward its completion. A portion of your account will be held in escrow to cover additional A Class sales charges that will be due if your total investments over the 13-month period do not qualify for the applicable sales charge reduction. WAIVERS FOR CERTAIN INVESTORS. The sales charge on A Class shares may be waived for: o Purchases by registered representatives and other employees of certain financial intermediaries (and their immediate family members) having selling agreements with the advisor or distributor o Broker-dealer sponsored wrap program accounts and/or fee-based accounts maintained for clients of certain financial intermediaries who have entered into selling agreements with American Century o Present or former officers, directors and employees (and their families) of American Century o Employer-sponsored retirement plan purchases. For plans under $1 mission in assets, purchases with sales charges are allowed, but may be subject to the retirement plan recordkeeper's policies. Refer to "Buying and Selling Fund Shares" in the statement of additional information o IRA Rollovers from any American Century Advisor Fund held in a qualified retirement plan o Certain other investors as deemed appropriate by American Century CALCULATION OF CONTINGENT DEFERRED SALES CHARGES APPLICABLE TO A AND C CLASS SHARES To minimize the amount of the CDSC you may pay when you redeem shares, the Fund will first redeem shares acquired through reinvested dividends and capital gain distributions, which are not subject to a CDSC. Shares that have been in your account long enough that they are not subject to a CDSC are redeemed next. For any remaining redemption amount, shares will be sold in the order they were purchased (earliest to latest). CDSC WAIVERS Any applicable CDSC may be waived in the following cases: o Redemptions through systematic withdrawal plans not exceeding annually 12% of the lesser of the original purchase cost or current market value for A and C Class shares o Distributions from IRAs due to attainment of age 59 1/2 for A and C Class shares o Required minimum distributions from retirement accounts upon reaching age 70 1/2 o Tax-free returns of excess contributions to IRAs o Redemptions due to death or post-purchase disability o Exchanges, unless the shares acquired by exchange are redeemed within the original CDSC period o IRA Rollovers from any American Century Advisor Fund held in an employer-sponsored retirement plan, for A Class shares only o If no broker was compensated for the sale REINSTATEMENT PRIVILEGE Within 90 days of a redemption of any A Class shares, you may reinvest all of the redemption proceeds in A Class shares of any American Century Advisor Fund at the then-current net asset value without paying an initial sales charge. At your request, any CDSC you paid on an A Class redemption that you are reinvesting will be credited to your account. You or your financial professional must notify the Fund's transfer agent in writing at the time of the reinvestment to take advantage of this privilege, and you may use it only once. RIGHTS OF SHAREHOLDERS The American Century Funds are series of open-end, management investment companies registered under the 1940 Act, which continuously offer to sell shares at their current net asset value. Each of the Corporations was organized as a Maryland corporation pursuant to Articles of Incorporation under the laws of the state of Maryland. The Corporations have established up to seven classes of shares: Investor Class, Institutional Class, R Class, Advisor Class, A Class, B Class and C Class. Issued and outstanding shares of the Funds are fully paid and non-assessable, and freely transferable. VOTING RIGHTS OF SHAREHOLDERS The American Century Funds are not required to hold annual meetings of shareholders, except as required under the 1940 Act. Shareholder approval is necessary only for certain changes in operations or the election of directors under certain circumstances. Each Fund, except Select, Balanced, Growth and Vista, requires that a special meeting of shareholders be called for any permissible purpose upon the written request of the holders of at least 10% of all the votes entitled to be cast at the meeting. Select, Balanced, Growth and Vista require that a special meeting of shareholders be called for any permissible purpose upon the written request of the holders of at least 25% of all the votes entitled to be cast at the meeting. Each shareholder is entitled to one vote per one dollar of NAV represented by their shares, with fractional dollars voting proportionally in director elections and other matters submitted to shareholders for vote. Matters affecting only one class or series shall be voted on only by that class or series. MEETINGS OF SHAREHOLDERS The presence at any stockholder meeting, in person or by proxy, of stockholders entitled to cast one third of the eligible votes shall constitute a quorum for each Fund, except Select, Balanced, Growth and Vista for which a majority of the eligible votes shall constitute a quorum. If a quorum is not present or represented, a majority of the voting stock represented in person or by proxy may adjourn the meeting without notice other than an announcement at the meeting until a quorum shall be present or represented. FUND CAPITALIZATION The following table sets forth the capitalization of the A and Advisor Classes of the A/Advisor Class Funds as of January 31, 2007, and the capitalization of the Advisor Class on a pro forma basis, as if the Reclassifications had occurred on that date. - -------------------------- ---------------- ---------------- ------------------- LARGE COMPANY VALUE A CLASS ADVISOR CLASS PRO FORMA COMBINING ADVISOR CLASS - -------------------------- ---------------- ---------------- ------------------ TOTAL NET ASSETS $246,309,414 $274,014,536 $520,323,950 - -------------------------- ---------------- ---------------- ------------------ SHARES OUTSTANDING 32,269,778 35,931,250 68,201,028 - -------------------------- ---------------- ---------------- ------------------ NET ASSET VALUE PER SHARE $7.63 $7.63 $7.63 - -------------------------- ---------------- ---------------- ------------------ - -------------------------- ---------------- ---------------- ------------------ VALUE A CLASS ADVISOR CLASS PRO FORMA COMBINING ADVISOR CLASS - -------------------------- ---------------- ---------------- ------------------ TOTAL NET ASSETS $71,164,680 $252,332,679 $323,497,359 - -------------------------- ---------------- ---------------- ------------------ SHARES OUTSTANDING 9,287,498 32,965,439 42,268,012 - -------------------------- ---------------- ---------------- ------------------ NET ASSET VALUE PER SHARE $7.66 $7.65 $7.65 - -------------------------- ---------------- ---------------- ------------------ - -------------------------- ---------------- ---------------- ------------------ SELECT A CLASS ADVISOR CLASS PRO FORMA COMBINING ADVISOR CLASS - -------------------------- ---------------- ---------------- ------------------ TOTAL NET ASSETS $25,244,472 $20,455,887 $45,700,359 - -------------------------- ---------------- ---------------- ------------------ SHARES OUTSTANDING 668,068 544,949 1,217,418 - -------------------------- ---------------- ---------------- ------------------ NET ASSET VALUE PER SHARE $37.79 $37.54 $37.54 - -------------------------- ---------------- ---------------- ------------------ - -------------------------- ---------------- ---------------- ------------------ STRATEGIC ALLOCATION: A CLASS ADVISOR CLASS PRO FORMA COMBINING CONSERVATIVE ADVISOR CLASS - -------------------------- ---------------- ---------------- ------------------ TOTAL NET ASSETS $25,918,797 $162,811,256 $188,730,053 - -------------------------- ---------------- ---------------- ------------------ SHARES OUTSTANDING 4,556,943 28,632,858 33,189,801 - -------------------------- ---------------- ---------------- ------------------ NET ASSET VALUE PER SHARE $5.69 $5.69 $5.69 - -------------------------- ---------------- ---------------- ------------------ - -------------------------- ---------------- ---------------- ------------------ STRATEGIC ALLOCATION: A CLASS ADVISOR CLASS PRO FORMA COMBINING MODERATE ADVISOR CLASS - -------------------------- ---------------- ---------------- ------------------- TOTAL NET ASSETS $162,382,532 $432,780,222 $595,162,754 - -------------------------- ---------------- ---------------- ------------------- SHARES OUTSTANDING 22,902,173 61,115,868 84,051,254 - -------------------------- ---------------- ---------------- ------------------- NET ASSET VALUE PER SHARE $7.09 $7.08 $7.08 - -------------------------- ---------------- ---------------- ------------------- - -------------------------- ---------------- ---------------- ------------------- STRATEGIC ALLOCATION: A CLASS ADVISOR CLASS PRO FORMA COMBINING AGGRESSIVE ADVISOR CLASS - -------------------------- ---------------- ---------------- ------------------ TOTAL NET ASSETS $79,602,425 $328,736,991 $408,339,416 - -------------------------- ---------------- ---------------- ------------------ SHARES OUTSTANDING 9,427,174 38,968,924 48,396,098 - -------------------------- ---------------- ---------------- ------------------ NET ASSET VALUE PER SHARE $8.44 $8.44 $8.44 - -------------------------- ---------------- ---------------- ------------------ - -------------------------- ---------------- ---------------- ------------------ GLOBAL GROWTH A CLASS ADVISOR CLASS PRO FORMA COMBINING ADVISOR CLASS - -------------------------- ---------------- ---------------- ------------------ TOTAL NET ASSETS $6,492,326 $5,667,837 $12,160,163 - -------------------------- ---------------- ---------------- ------------------ SHARES OUTSTANDING 592,277 521,159 1,117,880 - -------------------------- ---------------- ---------------- ------------------ NET ASSET VALUE PER SHARE $10.96 $10.88 $10.88 - -------------------------- ---------------- ---------------- ------------------ - -------------------------- ---------------- ---------------- ------------------ INTERNATIONAL GROWTH A CLASS ADVISOR CLASS PRO FORMA COMBINING ADVISOR CLASS - -------------------------- ---------------- ---------------- ------------------ TOTAL NET ASSETS $29,598,475 $339,303,710 $368,902,185 - -------------------------- ---------------- ---------------- ------------------ SHARES OUTSTANDING 2,340,093 26,854,348 29,197,854 - -------------------------- ---------------- ---------------- ------------------ NET ASSET VALUE PER SHARE $12.65 $12.63 $12.63 - -------------------------- ---------------- ---------------- ------------------ The following table sets forth the capitalization of the C and Advisor Classes of the C/Advisor Class Funds as of January 31, 2007, and the capitalization of the Advisor Class on a pro forma basis, as if the Reclassifications had occurred on that date. - -------------------------- --------------- ---------------- ------------------- SMALL CAP VALUE C CLASS ADVISOR CLASS PRO FORMA COMBINING ADVISOR CLASS - -------------------------- --------------- ---------------- ------------------- TOTAL NET ASSETS $3,585,862 $436,991,470 $440,577,332 - -------------------------- --------------- ---------------- ------------------- SHARES OUTSTANDING 380,769 44,550,943 44,916,474 - -------------------------- --------------- ---------------- ------------------- NET ASSET VALUE PER SHARE $9.42 $9.81 $9.81 - -------------------------- --------------- ---------------- ------------------- - -------------------------- --------------- ---------------- -------------------- GROWTH C CLASS ADVISOR CLASS PRO FORMA COMBINING ADVISOR CLASS - -------------------------- --------------- ---------------- ------------------- TOTAL NET ASSETS $1,103,634 $87,603,862 $88,707,496 - -------------------------- --------------- ---------------- ------------------- SHARES OUTSTANDING 50,625 3,893,073 3,942,123 - -------------------------- --------------- ---------------- ------------------- NET ASSET VALUE PER SHARE $21.80 $22.50 $22.50 - -------------------------- --------------- ---------------- ------------------- - -------------------------- --------------- ---------------- ------------------- VISTA C CLASS ADVISOR CLASS PRO FORMA COMBINING ADVISOR CLASS - -------------------------- --------------- ---------------- ------------------- TOTAL NET ASSETS $3,558,599 $213,041,959 $216,600,558 - -------------------------- --------------- ---------------- ------------------- SHARES OUTSTANDING 210,871 12,199,746 12,403,560 - -------------------------- --------------- ---------------- ------------------- NET ASSET VALUE PER SHARE $16.88 $17.46 $17.46 - -------------------------- --------------- ---------------- ------------------- The following table sets forth the capitalization of the Advisor and Investor Classes of the Advisor/Investor Class Funds as of January 31, 2007, and the capitalization of the Investor Class on a pro forma basis, as if the Reclassifications had occurred on that date. - ------------------------- ---------------- ---------------- ------------------- BALANCED ADVISOR CLASS INVESTOR CLASS PRO FORMA COMBINING INVESTOR CLASS - ------------------------- ---------------- ---------------- ------------------- TOTAL NET ASSETS $15,907,451 $642,489,145 $658,396,596 - ------------------------- ---------------- ---------------- ------------------- SHARES OUTSTANDING 950,340 38,360,155 39,309,854 - ------------------------- ---------------- ---------------- ------------------- NET ASSET VALUE PER SHARE $16.74 $16.75 $16.75 - ------------------------- ---------------- ---------------- ------------------- - ------------------------- ---------------- ---------------- ------------------- LIFE SCIENCES ADVISOR CLASS INVESTOR CLASS PRO FORMA COMBINING INVESTOR CLASS - ------------------------- ---------------- ---------------- ------------------- TOTAL NET ASSETS $92,914 $109,232,724 $109,325,638 - ------------------------- ---------------- ---------------- ------------------- SHARES OUTSTANDING 17,312 20,024,916 20,041,964 - ------------------------- ---------------- ---------------- ------------------- NET ASSET VALUE PER SHARE $5.37 $5.45 $5.45 - ------------------------- ---------------- ---------------- ------------------- - ------------------------- ---------------- ---------------- ------------------- TECHNOLOGY ADVISOR CLASS INVESTOR CLASS PRO FORMA COMBINING INVESTOR CLASS - ------------------------- ---------------- ---------------- ------------------- TOTAL NET ASSETS $99,576 $113,245,711 $113,345,287 - ------------------------- ---------------- ---------------- ------------------- SHARES OUTSTANDING 4,760 5,313,989 5,318,662 - ------------------------- ---------------- ---------------- ------------------- NET ASSET VALUE PER SHARE $20.92 $21.31 $21.31 - ------------------------- ---------------- ---------------- ------------------- The following table sets forth the capitalization of the C and Investor Classes, and the Advisor, C and Investor Classes of Life Sciences as of January 31, 2007, and the capitalization of the Investor Class on a pro forma basis, as if the Reclassifications had occurred on that date. - ---------------------------- ----------------- ---------------- ------------------- LIFE SCIENCES C CLASS INVESTOR CLASS PRO FORMA COMBINING INVESTOR CLASS - ---------------------------- ----------------- ---------------- ------------------- TOTAL NET ASSETS $36,641 $109,232,724 $109,269,365 - ---------------------------- ----------------- ---------------- ------------------- SHARES OUTSTANDING 7,074 20,024,916 20,031,639 - ---------------------------- ----------------- ---------------- ------------------- NET ASSET VALUE PER SHARE $5.18 $5.45 $5.45 - ---------------------------- ----------------- ---------------- ------------------- - ---------------------------- ----------------- ---------------- ----------------- ------------------- LIFE SCIENCES ADVISOR CLASS C CLASS INVESTOR CLASS PRO FORMA COMBINING INVESTOR CLASS - ---------------------------- ----------------- ---------------- ----------------- ------------------- TOTAL NET ASSETS $92,914 $36,641 $109,232,724 $109,362,279 - ---------------------------- ----------------- ---------------- ----------------- ------------------- SHARES OUTSTANDING 17,312 7,074 20,024,916 20,048,687 - ---------------------------- ----------------- ---------------- ----------------- ------------------- NET ASSET VALUE PER SHARE $5.37 $5.18 $5.45 $5.45 - ---------------------------- ----------------- ---------------- ----------------- ------------------- INFORMATION ABOUT THE AMERICAN CENTURY FUNDS GENERAL INFORMATION This Proxy Statement/Prospectus is being furnished in connection with the solicitation of proxies by the Boards. Proxies may be solicited by officers or employees of American Century Funds, American Century, their affiliates, as well as employees of a proxy solicitation firm hired by American Century. Additionally, financial intermediaries may solicit the votes of the beneficial owners of the Funds. It is anticipated that the solicitation of proxies will be primarily by mail, internet, telephone, facsimile or personal interview. Shareholders who communicate proxies by telephone or by other electronic means have the same power and authority to issue, revoke or otherwise change their voting instructions as shareholders submitting proxies in written form. Telephonic solicitations will follow procedures designed to ensure accuracy and prevent fraud. American Century or an affiliate thereof may reimburse banks, brokers and others for their reasonable expenses in forwarding proxy solicitation materials to beneficial owners of American Century shares, and may reimburse certain officers or employees that it may employ for their reasonable expenses in assisting in the solicitation of proxies from such beneficial owners. Such expenses are currently estimated to be approximately $150,000 in the aggregate. DATE, TIME AND PLACE OF MEETING The Meeting will be held on June 27, 2007 at the principal executive offices of American Century, 4500 Main Street, Kansas City, Missouri 64111 at 11:00 am Central Time. USE AND REVOCATION OF PROXIES A shareholder executing and returning a proxy has the power to revoke it at any time prior to its exercise by executing a superseding proxy (i.e., a later-dated and signed proxy), by submitting a notice of revocation to the Corporate Secretary of the American Century Funds or by subsequently registering his or her vote by telephone or over the Internet. In addition, although mere attendance at the Meeting will not revoke a proxy, a shareholder of record present at the Meeting may withdraw his or her proxy and vote in person. All shares represented by properly executed proxies received at or prior to the Meeting, unless such proxies previously have been revoked, will be voted at the Meeting in accordance with the directions on the proxies; if no direction is indicated on a properly executed proxy, such shares will be voted "FOR" approval of the Reclassifications. It is not anticipated that any matters other than the approval of the Reclassifications will be brought before the Meeting. If, however, any other business properly is brought before the Meeting, proxies will be voted in accordance with the judgment of the persons designated on such proxies. VOTING RIGHTS AND REQUIRED VOTES A quorum of shareholders is necessary to hold a valid meeting. The presence at any stockholder meeting, in person or by proxy, of stockholders entitled to cast one third of the eligible votes shall constitute a quorum for each Fund or class, except Select, Balanced, Growth and Vista for which a majority of the eligible votes shall constitute a quorum. Each shareholder is entitled to one vote per one dollar of NAV represented by their shares, with fractional dollars voting proportionally. Shareholders of each affected American Century Fund class vote separately on whether to approve the Reclassifications, and the consummation of any one Reclassification is not a condition for approving any other Reclassification. Approval of the Reclassifications requires the approval of the majority of the aggregate number of votes entitled to be cast thereon. Broker-dealer firms and other financial intermediaries holding shares of any of the American Century Funds in "street name" for the benefit of their customers and clients will request the instructions of such customers and clients on how to vote their shares before the Meeting. Each American Century Fund will include shares held of record by broker-dealers as to which such authority has been granted in its tabulation of the total number of shares present for purposes of determining whether the necessary quorum of shareholders exists. Properly executed proxies that are returned but that are marked "abstain" or with respect to which a broker-dealer has declined to vote on any proposal ("broker non-votes") will be counted as present for the purposes of determining a quorum. Abstention and broker non-votes (if applicable) will have the same effect as a vote against a proposal. If, by the time scheduled for the Meeting, sufficient votes in favor of approval of a proposal have not been received from the shareholders of the applicable Fund or class, the persons named as proxies may propose one or more adjournments of such Meeting to permit further solicitation of proxies from shareholders. According to the Bylaws of the American Century Funds, any meeting at which a quorum is not present can be adjourned by a majority of the voting stock represented in person or by proxy without additional notice other than announcement at the meeting, until a quorum shall be present or represented. If the Meeting is adjourned for more than ninety days, then the Funds are required to send a new notice to shareholders. RECORD DATE AND OUTSTANDING SHARES Only holders of record of shares of the Funds at the close of business on April 13, 2007 (the "Record Date") are entitled to vote at the Meeting or any adjournment thereof. The following chart sets forth the number of shares of each class of the Funds issued and outstanding and the number of votes entitled to vote at the close of business on March 15, 2007. - --------------------- ----------------- ------------------- -------------------- NUMBER OF VOTES ENTITLED TO VOTE FUND NAME SHARE CLASS OUTSTANDING SHARES ($1 EQUALS 1 VOTE) - --------------------- ----------------- ------------------- -------------------- LARGE COMPANY VALUE A CLASS 31,857,769.41 $235,428,915.93 - --------------------- ----------------- ------------------- -------------------- VALUE A CLASS 9,246,101.30 69,253,298.76 - --------------------- ----------------- ------------------- -------------------- SELECT A CLASS 627,486.01 22,853,040.50 - --------------------- ----------------- ------------------- -------------------- STRATEGIC ALLOCATION: A CLASS 4,648,819.60 26,312,318.93 CONSERVATIVE - --------------------- ----------------- ------------------- -------------------- STRATEGIC ALLOCATION: A CLASS 23,238,386.06 161,971,550.87 MODERATE - --------------------- ----------------- ------------------- -------------------- STRATEGIC ALLOCATION: A CLASS 9,514,366.10 78,683,807.62 AGGRESSIVE - --------------------- ----------------- ------------------- -------------------- GLOBAL GROWTH A CLASS 644,884.55 6,758,390.11 - --------------------- ----------------- ------------------- -------------------- INTERNATIONAL GROWTH A CLASS 2,344,870.70 29,006,050.58 - --------------------- ----------------- ------------------- -------------------- SMALL CAP VALUE C CLASS 367,248.99 3,437,450.50 - --------------------- ----------------- ------------------- -------------------- GROWTH C CLASS 54,162.32 1,133,617.36 - --------------------- ----------------- ------------------- -------------------- VISTA C CLASS 204,094.91 3,585,947.63 - --------------------- ----------------- ------------------- -------------------- BALANCED ADVISOR CLASS 941,891.85 15,541,215.57 - --------------------- ----------------- ------------------- -------------------- LIFE SCIENCES ADVISOR CLASS 15,520.64 81,638.57 - --------------------- ----------------- ------------------- -------------------- LIFE SCIENCES C CLASS 7,403.77 37,537.11 - --------------------- ----------------- ------------------- -------------------- TECHNOLOGY ADVISOR CLASS 4,810.91 99,778.34 - --------------------- ----------------- ------------------- -------------------- At the close of business on March 15, 2007, the following persons owned, to the knowledge of management, 5% or more of the outstanding shares of the Funds. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT OF THE FUNDS PRINCIPAL SHAREHOLDERS PERCENTAGE OF PERCENTAGE OF OUTSTANDING SHARES OUTSTANDING OWNED POST SHARES OWNED REORGANIZATION ON SHAREHOLDER OF RECORD A PRO FORMA BASIS - -------------------------------------------------------------------------------- Large Company Value - -------------------------------------------------------------------------------- A Class Charles Schwab & Co., Inc. 69% 3%(1) San Francisco, California HUBCO Regions Financial Corporation Birmingham, Alabama 5% 2% - -------------------------------------------------------------------------------- Advisor Class TransAmerica Life 13% 7% Insurance Company Cedar Rapids, Iowa Nationwide Insurance Co. Trust 12% 6% Columbus, Ohio American Century Serv. Corp. 9% 5% Schwab- Aggressive Large Co. Value Advisor Omnibus Kansas City, Missouri American Century Serv. Corp. 8% 5% Schwab- Moderately Aggressive Large Co. Value Advisor Omnibus Kansas City, Missouri American United Life 7% 4% Group Retirement Annuity II Indianapolis, Indiana National Financial Services LLC 6% 3% New York, New York Saxon & Co. 6% 3% Philadelphia, Pennsylvania - -------------------------------------------------------------------------------- Value - -------------------------------------------------------------------------------- A Class Charles Schwab & Co., Inc. 54% 12%(1) San Francisco, California FIIOC FBO Lindsay Manufacturing Covington, Kentucky 6% 1% - -------------------------------------------------------------------------------- Advisor Class Nationwide Trust 14% 11% Company FSB Columbus, Ohio Delaware Charter 10% 8% Guarantee & Trust FBO Principal Financial Group Des Moines, Iowa Nationwide Insurance 10% 7% Company QPVA Columbus, Ohio James B. Anderson TR 9% 7% American Chamber of Commerce Execut. & Restated 401k Plan & Trust Springfield, Missouri Reliance Trust Co. 7% 6% TR FBO MetLife NAV Plans Greenwood Village, Colorado - -------------------------------------------------------------------------------- PERCENTAGE OF PERCENTAGE OF OUTSTANDING SHARES OUTSTANDING OWNED POST SHARES OWNED REORGANIZATION ON SHAREHOLDER OF RECORD A PRO FORMA BASIS - -------------------------------------------------------------------------------- Select - -------------------------------------------------------------------------------- A Class Charles Schwab & Co., Inc. 34% 19%(1) San Francisco, California - -------------------------------------------------------------------------------- Advisor Class UMB Bank NA 36% 16% Fiduciary for Various Deferred Accounts Topeka, Kansas MG Trust Company Cust FBO 13% 6% Rosen Hotels & Resorts Inc Denver, Colorado UMB Bank NA 13% 6% Fiduciary for Tax Deferred Accounts Topeka, Kansas Security Benefit Life Insurance 10% 5% Co. Topeka, Kansas Saxon & Co 8% 4% Philadelphia, Pennsylvania - -------------------------------------------------------------------------------- Strategic Allocation: Conservative - -------------------------------------------------------------------------------- A Class Charles Schwab & Co. Inc. 55% 8%(1) San Francisco, California FIIOC FBO National 8% 1%(1) Polymers LLC Profit Sharing Plan Covington, Kentucky - -------------------------------------------------------------------------------- Advisor Class Saxon & Co. 27% 23% Philadelphia, Pennsylvania Reliance Trust Company 18% 15% TR Metlife NAV Plans Greenwood Vilage, Colorado Charles Schwab & Co., Inc. 5% 4% San Francisco, California - -------------------------------------------------------------------------------- Strategic Allocation: Moderate - -------------------------------------------------------------------------------- A Class Charles Schwab & Co., Inc. 29% 8%(1) San Francisco, California - -------------------------------------------------------------------------------- Advisor Class Saxon and Co. 32% 23% Philadelphia, Pennsylvania Reliance Trust Company 11% 8% TR FBO Metlife NAV Plans Greenwood Village, Colorado Charles Schwab & Co., Inc. 7% 5% San Francisco, California - -------------------------------------------------------------------------------- PERCENTAGE OF PERCENTAGE OF OUTSTANDING SHARES OUTSTANDING OWNED POST SHARES OWNED REORGANIZATION ON SHAREHOLDER OF RECORD A PRO FORMA BASIS - -------------------------------------------------------------------------------- Strategic Allocation: Aggressive - -------------------------------------------------------------------------------- A Class Charles Schwab & Co., Inc. 57% 11%(1) San Francisco, California - -------------------------------------------------------------------------------- Advisor Class Saxon and Co. 29% 23% Philadelphia, Pennsylvania Reliance Trust Company 13% 10% TR FBO Metlife NAV Plans Greenwood Village, Colorado Charles Schwab & Co., Inc. 11% 9% San Francisco, California Metropolitan Life CO/SA-ENTP 6% 4% ENTP-American Century STRT Alloc AG Greenwood Village, Colorado - -------------------------------------------------------------------------------- Global Growth - -------------------------------------------------------------------------------- A Class Charles Schwab & Co., Inc. 71% 39%(1) San Francisco, California MLPF&S Inc. Jacksonville, Florida 7% 4% - -------------------------------------------------------------------------------- Advisor Class Charles Schwab & Co., Inc. 48% 21% San Francisco, California Union Bank Trust 18% 8% Nominee FBO Select Benefit Omnibus San Diego, California Morris & Co. 6% 3% South Bend, Indiana - -------------------------------------------------------------------------------- International Growth - -------------------------------------------------------------------------------- A Class Charles Schwab & Co., Inc. 66% 5%(1) San Francisco, California - -------------------------------------------------------------------------------- Advisor Class State Street Bank 33% 30% FBO ADP Daily Val North Quincy, Massachusetts Nationwide Insurance Company QPVA 9% 8% Columbus, Ohio Nationwide Trust Company FSB 5% 5% Columbus, Ohio Reliance Trust Company Trustee Citi Street Retirement Services Somerset, New Jersey 5% 5% - -------------------------------------------------------------------------------- PERCENTAGE OF PERCENTAGE OF OUTSTANDING SHARES OUTSTANDING OWNED POST SHARES OWNED REORGANIZATION ON SHAREHOLDER OF RECORD A PRO FORMA BASIS - -------------------------------------------------------------------------------- Small Cap Value - -------------------------------------------------------------------------------- Advisor Class Nationwide Trust Company FSB 25% 25% Columbus, Ohio Hartford Life Insurance Company 16% 16% Hartford, Connecticut Delaware Charter Guarantee & Trust 13% 13% FBO Principal Financial Group Des Moines, Iowa TransAmerica Life 7% 7% Insurance Company Cedar Rapids, Iowa Saxon & Co. 6% 6% Philadelphia, Pennsylvania - -------------------------------------------------------------------------------- C Class None - -------------------------------------------------------------------------------- Growth - -------------------------------------------------------------------------------- Advisor Class Charles Schwab & Co., Inc. 13% 13% San Francisco, California Nationwide Trust Company FSB 12% 11% Columbus, Ohio - -------------------------------------------------------------------------------- C Class Pershing LLC 20% 3%(1) Jersey City, New Jersey - -------------------------------------------------------------------------------- Vista - -------------------------------------------------------------------------------- Advisor Class Trustar/Delaware Charter 13% 13% FBO Principal Financial Group Wilmington, Delaware Charles Schwab & Co., Inc. 11% 10% San Francisco, California Oklahoma Public Employees 10% 10% Retirement System Board of Trustees FBO OK State Employees Def Comp Plan Greenwood Village, Colorado Delaware Charter Guarantee & Trust 7% 7% FBO Various Qualified Plans Des Moines, Iowa Transamerica Life Insurance Company 7% 7% Cedar Rapids, Iowa - -------------------------------------------------------------------------------- PERCENTAGE OF PERCENTAGE OF OUTSTANDING SHARES OUTSTANDING OWNED POST SHARES OWNED REORGANIZATION ON SHAREHOLDER OF RECORD A PRO FORMA BASIS - -------------------------------------------------------------------------------- Vista - -------------------------------------------------------------------------------- C Class Delaware Charter Guarantee & Trust 9% 0%(1) FBO Principal Financial Group Omnibus Qualified Des Moines, Iowa Delaware Charter Guarantee & Trust 8% 0%(1) FBO Various Qualified Plans Des Moines, Iowa - -------------------------------------------------------------------------------- Balanced - -------------------------------------------------------------------------------- Investor Class Charles Schwab & Co., Inc. 6% 6% San Francisco, California - -------------------------------------------------------------------------------- Advisor Class Charles Schwab & Co., Inc. 14% 3%(2) San Francisco, California MLPF&S, Inc. 10% 3%(2) Jacksonville, Florida Mitra & Co Exp 9% 2%(2) M&I Trust Company NA Milwaukee, Wisconsin Delaware Charter Guarantee & Trust 8% 2%(2) Des Moines, Iowa National Financial Services LLC 6% 1%(2) New York, New York - -------------------------------------------------------------------------------- Technology - -------------------------------------------------------------------------------- Investor Class Charles Schwab & Co., Inc. 6% 6% San Francisco, CA - -------------------------------------------------------------------------------- Advisor Class MG Trust Cust 48% 0%(2) FBO Gibbs M. Smith Inc. 401k P/S Plan Denver, Colorado MG Trust Company Cust 30% 0%(2) FBO Carmel Architectural Sales 401K P Denver, Colorado MG Trust Cust FBO 10% 0%(2) Cincinnati Fastener Co 401k Plan Denver, Colorado National Financial Services LLC 6% 0%(2) New York, New York - -------------------------------------------------------------------------------- (1) PERCENTAGE BASED ON RECLASSIFICATION INTO ADVISOR CLASS (2) PERCENTAGE BASED ON RECLASSIFICATION INTO INVESTOR CLASS PERCENTAGE OF PERCENTAGE OF PERCENTAGE OF PERCENTAGE OF OUTSTANDING SHARES OUTSTANDING SHARES OUTSTANDING SHARES OUTSTANDING OWNED POST OWNED POST OWNED POST SHARES OWNED REORGANIZATION ON REORGANIZATION ON REORGANIZATION ON SHAREHOLDER OF RECORD A PRO FORMA BASIS(1) A PRO FORMA BASIS(2) A PRO FORMA BASIS(3) - ----------------------------------------------------------------------------------------------------------------------------- Life Sciences - ----------------------------------------------------------------------------------------------------------------------------- Investor Class Charles Schwab & Co., Inc. 10% 10% 10% 10% San Francisco, California - ----------------------------------------------------------------------------------------------------------------------------- Advisor Class AG Edwards & Sons C/F 21% 0% N/A 0% Edward Hlipala Sr Decd FBO Edward Hlipala Jr Waterford, Connecticut Nationwide Trust Company FSB 19% 0% N/A 0% Colubus, Ohio - ----------------------------------------------------------------------------------------------------------------------------- Advisor Class Frontier Trust Company TTEE 18% 0% N/A 0% FBO Browne Blebotte Wilson & Horn PLLC 401K Plan Fargo, North Dakota Symetra Investment Services 14% 0% N/A 0% Seattle, Washington National Financial Services LLC 12% 0% N/A 0% New York, New York UMBSC & CO 6% 0% N/A 0% FBO Ronald Kufahl IRA Kansas City, Missouri - ----------------------------------------------------------------------------------------------------------------------------- C Class American Century Investment 68% N/A 0% 0% Management, Inc. Kansas City, Missouri Citigroup Global Markets Inc. 23% N/A 0% 0% New York, New York MG Trust Company 8% N/A 0% 0% Cust FBO Wagewatch Inc. 401K P/S Plan Denver, Colorado - ----------------------------------------------------------------------------------------------------------------------------- (1) PERCENTAGE BASED ON ADVISOR CLASS RECLASSIFICATION INTO INVESTOR CLASS (2) PERCENTAGE BASED ON C CLASS RECLASSIFICATION INTO INVESTOR CLASS (3) PERCENTAGE BASED ON ADVISOR CLASS AND C CLASS RECLASSIFICATIONS INTO INVESTOR CLASS The Funds are unaware of any other shareholders, beneficial or of record, who own more than 5% of any class of a Fund's outstanding shares. The Funds are unaware of any other shareholders, beneficial or of record, who own more than 25% of the voting securities of a Corporation. A shareholder owning of record or beneficially more than 25% of a Corporation's outstanding shares may be considered a controlling person. The vote of any such person could have a more significant effect on matters presented at a shareholder's meeting than votes of other shareholders. As of March 15, 2007, the officers and directors of the Funds, as a group, owned less than 1% of any Fund's outstanding shares. OTHER SERVICE PROVIDERS American Century Services, LLC, 4500 Main Street, Kansas City, Missouri 64111, an affiliate of American Century, serves as transfer agent of the American Century Funds. American Century Investment Services, Inc., 4500 Main Street, Kansas City, Missouri 64111, an affiliate of American Century, serves as distributor to the American Century Funds. WHERE TO FIND ADDITIONAL INFORMATION Additional information about the American Century Funds is included in the documents listed in the beginning of this Proxy Statement/Prospectus. The Corporations are subject to the informational requirements of the Securities Act, the Securities Exchange Act of 1934, and the 1940 Act, and in accordance therewith file reports and other information with the SEC. Reports, proxy and information statements, and other information filed by the Corporations, on behalf of the Funds, can be obtained by calling or writing the Funds and can also be inspected and copied by the public at the public reference facilities maintained by the SEC in Washington, DC located at Room 1580, 100 F Street, N.E., Washington DC 20549 and located at room 1204, Everett McKinley Dirksen Bldg., 219 South Dearborn Street, Chicago, IL 60604 and 233 Broadway, NY, NY 10007. Copies of such material can be obtained at prescribed rates from the Public Reference Branch, Office of Consumer Affairs and Information Services, SEC, Washington DC 20549, or obtained electronically from the EDGAR database on the SEC's website (www.sec.gov). OTHER MATTERS AND DISCRETION OF ATTORNEYS NAMED IN THE PROXY The American Century Funds are not required, and do not intend, to hold regular annual meetings of shareholders. Shareholders wishing to submit proposals for consideration for inclusion in a Proxy Statement/ Prospectus for the next meeting of shareholders should send their written proposals to Corporate Secretary, American Century Funds, P.O. Box 410141, Kansas City, Missouri, 64141, or by e-mail to corporatesecretary@americancentury.com so that they are received within a reasonable time before any such meeting. No business other than the matters described above is expected to come before the Meeting, but should any other matter requiring a vote of shareholders arise, including any question as to an adjournment or postponement of the Meeting, the persons named on the enclosed proxy card(s) will vote on such matters according to their best judgment in the interests of the American Century Funds. - -------------------------------------------------------------------------------- SHAREHOLDERS ARE REQUESTED TO COMPLETE, DATE AND SIGN THE ENCLOSED PROXY CARD(S) AND RETURN IN THE ENCLOSED ENVELOPE, WHICH NEEDS NO POSTAGE IF MAILED IN THE UNITED STATES. SHAREHOLDERS RECEIVING THIS PROXY STATEMENT/PROSPECTUS MAY SIMULTANEOUSLY RECEIVE A SEPARATE PROXY STATEMENT REGARDING THE ELECTION OF DIRECTORS/TRUSTEES AND CERTAIN OTHER MATTERS. PLEASE COMPLETE ALL PROXY CARD(S). - -------------------------------------------------------------------------------- EXHIBIT A FORM OF AMENDMENT TO THE CHARTER OF _________________________, INC. (the "Corporation") The shares of each class of shares of the Corporation's stock identified below as a predecessor class of a series (each such class, a "Predecessor Class") are hereby reclassified as additional shares of the class identified below as the successor class of such series (each such class, a "Successor Class"), as follows (the terms "series" and "class" having the meanings set forth in the charter of the Corporation): 1. All issued and outstanding shares of each Predecessor Class are hereby reclassified into that number of shares of the corresponding Successor Class having a total net asset value equal to the total net asset value at the effective time of this amendment of the respective Predecessor Class shares; 2. All authorized but unissued shares of each Predecessor Class are hereby reclassified as shares of the corresponding Successor Class; and 3. The assets and liabilities previously allocated to each Predecessor Class are hereby reallocated to the corresponding Successor Class. For purposes of this amendment, the Predecessor Classes and corresponding Successor Classes are as follows: SERIES PREDECESSOR CLASS SUCCESSOR CLASS EXHIBIT B MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE VALUE FUND LARGE COMPANY VALUE FUND SMALL CAP VALUE FUND Market Perspective BY PHIL DAVIDSON, CHIEF INVESTMENT OFFICER, U.S. VALUE EQUITY Despite persistently high oil prices, investor uneasiness about inflation and rising interest rates--factors that typically weigh on equities--stocks advanced strongly during the 12 months ended March 31, 2006. Helped by a 4% gain during the first quarter of this year, the S&P 500 Index, representative of the broad market, was up almost 12% for the same period. In the value realm, small- and mid-sized companies had the highest returns for the 12-month period, as evidenced by the Russell 2000 Value Index's gain of almost 24%. Larger value companies, tracked by the Russell 1000 Value Index, were up a little over 13%. On the whole, growth shares performed better than value at the small end of the capitalization range; value stocks had a slight edge among larger businesses. All that said, for many investors, stocks still have a way to go. The S&P 500 closed the period still 15% off its March 2000 record high; the Nasdaq Composite is still 54% behind its 2000 zenith. YEAR OF ENERGY With oil prices increasing 20% over the period, reaching nearly $70 a barrel, energy companies contributed most to the S&P 500's return. Financials followed, as an active stock market and burgeoning merger and acquisition activity lifted capital markets companies and low interest rates fueled real estate stocks. The high-priced energy situation cut both ways, though, as it pressured the earnings of large users of energy, either in their products or their production, as well as companies caught in the ripple effect of higher prices at the pump. Affected businesses ranged from automakers and chemical companies, to food products companies and restaurants, to retailers that operate giant fleets of trucks. NARROW MARKET, LOW QUALITY Many managers of diversified value portfolios faced two additional headwinds: a narrow market dominated by energy stocks for much of the period, and a continuing rally in lower-quality shares as investors rewarded stocks rated B or lower (Standard & Poor's defines high-quality stocks as B+ or higher). A+ shares, representing many of the market's strongest and most stable companies, actually had the lowest returns for the period. Historically, market cycles led by lower-quality stocks have tended to dampen the returns of American Century's value funds, which generally seek higher-quality value stocks. ONE-YEAR TOTAL RETURNS AS OF MARCH 31, 2006 - -------------------------------------------------------------------------------- S&P 500 Index 11.73% - -------------------------------------------------------------------------------- Dow Jones Industrial Average 8.27% - -------------------------------------------------------------------------------- Nasdaq Composite Index 18.02% - -------------------------------------------------------------------------------- Value - Performance TOTAL RETURNS AS OF MARCH 31, 2006 -------------------------------------- AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE - -------------------------------------------------------------------------------------------- INVESTOR CLASS 9.89% 9.94% 11.00% 12.39% 9/1/93 - -------------------------------------------------------------------------------------------- RUSSELL 3000 VALUE INDEX(1) 14.20% 8.42% 11.16% 11.86%(2) -- - -------------------------------------------------------------------------------------------- S&P 500 INDEX(1) 11.73% 3.97% 8.95% 10.51%(2) -- - -------------------------------------------------------------------------------------------- LIPPER MULTI-CAP VALUE INDEX(1) 12.97% 7.89% 9.84% 10.77%(2) -- - -------------------------------------------------------------------------------------------- Lipper Multi-Cap Value Ranking(1) 383 of 477 37 of 248 23 of 100 12 of 63(2) -- - -------------------------------------------------------------------------------------------- Morningstar Large Value Ranking(3) 746 of 1328 42 of 739 37 of 355 16 of 213(2) -- - -------------------------------------------------------------------------------------------- Institutional Class 10.10% 10.18% -- 8.85% 7/31/97 - -------------------------------------------------------------------------------------------- Advisor Class 9.61% 9.67% -- 10.54% 10/2/96 - -------------------------------------------------------------------------------------------- A Class No sales charge* 9.75% -- -- 17.07%(4) 1/31/03 With sales charge* 3.39% -- -- 14.91%(4) - -------------------------------------------------------------------------------------------- B Class No sales charge* 8.81% -- -- 16.27%(4) 1/31/03 With sales charge* 4.81% -- -- 15.58%(4) - -------------------------------------------------------------------------------------------- C Class 8.87% -- -- 7.10% 6/4/01 - -------------------------------------------------------------------------------------------- R Class -- -- -- 4.99%(5) 7/29/05 - -------------------------------------------------------------------------------------------- *Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Data provided by Lipper Inc. -- A Reuters Company. (c) 2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Rankings -- Rankings are based only on the universe shown and are based on average annual total returns. This listing might not represent the complete universe of funds tracked by Lipper. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. (2) Since 8/31/93, the date nearest the Investor Class's inception for which data are available. (3) (c) 2006 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar Rankings are based on risk adjusted returns. (4) Class return would have been lower if the class had not received partial reimbursements or waivers of its distribution and service fees. (5) Total returns for periods less than one year are not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance and ranking reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. (continued) Value - Performance GROWTH OF $10,000 OVER 10 YEARS $10,000 investment made March 31, 1996
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ONE-YEAR RETURNS OVER 10 YEARS Periods ended March 31 - ----------------------------------------------------------------------------------------------------- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 - ----------------------------------------------------------------------------------------------------- Investor Class 15.92% 39.94% -9.88% 1.42% 19.20% 17.96% -19.85% 40.66% 9.95% 9.89% - ----------------------------------------------------------------------------------------------------- Russell 3000 Value Index 17.83% 46.78% 2.51% 6.81% 1.48% 5.67% -22.79% 42.45% 12.88% 14.20% - ----------------------------------------------------------------------------------------------------- S&P 500 Index 19.83% 48.00% 18.46% 17.94% -21.68% 0.24% -24.76% 35.12% 6.69% 11.73% - ----------------------------------------------------------------------------------------------------- Lipper Multi-Cap Value Index 16.28% 39.07% -3.71% 5.42% 6.54% 6.47% -22.91% 42.99% 10.27% 12.97% - ----------------------------------------------------------------------------------------------------- Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance and ranking reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. Value - Portfolio Commentary PORTFOLIO MANAGERS: PHIL DAVIDSON, MICHAEL LISS, AND SCOTT MOORE. Value gained 9.89%* for the 12 months ended March 31, 2006, trailing the Lipper Multi-Cap Value Index, which was up 12.97%. The Russell 3000 Value Index, indicative of the value side of the market, was up 14.20%. The S&P 500 Index, representative of the broad market, gained 11.73%. The portfolio's latest annual results reflect an equities market in which investors generally preferred lower-quality, higher-beta, momentum-driven stocks. In contrast, Value steers toward higher-quality businesses with strong cash flows and sound balance sheets. In addition, among value stocks, returns on larger-capitalization issues trailed those of small-cap stocks. The portfolio's long-term performance has been strong. As of March 31, Value's ten-year average annualized return of 11.00% places it in the top 23% of its Lipper Multi-Cap Value peer group and in the top 13% of Morningstar's Large Value Category. Additionally, from the fund's inception on September 1, 1993, Value has produced an average annual return of 12.39%, significantly ahead of the 10.77%** return posted by the Lipper Multi-Cap Value Index and the Russell 3000 Value Index's 11.86%** return. The S&P 500 has a 10.51%** average annualized return for the same period. FINANCIALS LEAD PORTFOLIO Financial stocks proved to be the portfolio's largest contributors to our absolute results, led by shares of insurance companies and commercial banks. On the insurance side, performance was paced by American International Group Inc. (AIG). The world's largest insurer, AIG has put regulatory investigations behind it and is benefiting from improved pricing in the wake of the 2005 hurricanes and its strong presence in foreign life insurance markets. Profits for commercial banks were squeezed during the period by rising short-term interest rates (a rising cost for capital). Nonetheless, two of our largest holdings in the industry, Bank of America Corp. and SunTrust Banks Inc., were among our top contributors. While Bank of America was not immune to the earnings-slowing effects of a "flat yield curve," it appears to be successfully integrating credit card giant MBNA, which it acquired last year. SunTrust Banks, the seventh-largest TOP TEN HOLDINGS AS OF MARCH 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 3/31/06 9/30/05 - -------------------------------------------------------------------------------- Bank of America Corp. 4.8% 4.4% - -------------------------------------------------------------------------------- Kraft Foods Inc. Cl A 4.5% 4.0% - -------------------------------------------------------------------------------- International Flavors & Fragrances Inc. 3.8% 2.1% - -------------------------------------------------------------------------------- Kimberly-Clark Corp. 3.6% 2.4% - -------------------------------------------------------------------------------- SunTrust Banks, Inc. 3.2% 2.8% - -------------------------------------------------------------------------------- Chevron Corp. 2.3% -- - -------------------------------------------------------------------------------- Anheuser-Busch Companies, Inc. 2.1% 1.7% - -------------------------------------------------------------------------------- Berkshire Hathaway Inc. Cl A 2.1% 2.1% - -------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 2.0% 3.1% - -------------------------------------------------------------------------------- XCEL Energy Inc. 2.0% 0.1% - -------------------------------------------------------------------------------- *All fund returns referenced in this commentary are for Investor Class shares. **Since 8/31/1993, the date nearest the Investor Class's inception for which data are available. (continued) Value - Portfolio Commentary U.S. bank, operates throughout 11 Southeastern states, which represent one of the highest population growth footprints in banking. INDUSTRIALS ADD VALUE In industrials, we were rewarded for taking positions in commercial services companies, particularly in the waste management industry. Republic Services Inc., a leading waste management firm, reported record earnings for 2005. In addition to raising its dividend 17% during the period, Republic Services announced plans to repurchase nearly 10% of its stock during 2006, a continuation of a multi-year trend. Another standout was Waste Management Inc., the largest solid waste management concern in the world. Fueled by expanding margins due to better pricing and continued cost control, Waste Management continues to improve its operating performance. SOME DISAPPOINTMENTS Despite these successes, we suffered setbacks that contributed to our underperformance. Three of our largest detractors were media companies. They included The New York Times Co. and Tribune Co. (which publishes several major newspapers including the Los Angeles Times), and Westwood One, Inc., the nation's largest radio network and the leading distributor of national radio programs. All three have been slowed by a weak advertising environment. Westwood One is also contending with rising operating expenses as it invests in new programming and technology. In consumer staples, Kimberly-Clark Corp., the world's top maker of personal-care paper products, was hampered by rising pulp prices and increased competition from private-label brands in the disposable diaper market, which has led to margin pressure. We believe the issues affecting this industry leader are manageable and increased our position during the period. LOOKING AHEAD Value can be a core investment for investors seeking long-term capital growth. We will continue to adhere to our discipline of seeking seasoned, well-managed companies whose shares appear to be undervalued for reasons unrelated to the firms' fundamental or financial health. This strategy has been in place since the fund's inception and has delivered attractive, risk-adjusted results over time. TOP FIVE INDUSTRIES AS OF MARCH 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 3/31/06 9/30/05 - -------------------------------------------------------------------------------- Commercial Banks 10.1% 9.3% - -------------------------------------------------------------------------------- Food Products 7.9% 7.5% - -------------------------------------------------------------------------------- Chemicals 7.9% 7.1% - -------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels 7.0% 5.4% - -------------------------------------------------------------------------------- Insurance 6.4% 9.9% - -------------------------------------------------------------------------------- TYPES OF INVESTMENTS IN PORTFOLIO - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 3/31/06 9/30/05 - -------------------------------------------------------------------------------- Common Stocks 95.9% 98.0% - -------------------------------------------------------------------------------- Temporary Cash Investments 4.5% 0.7% - -------------------------------------------------------------------------------- Other Assets and Liabilities* (0.4)% 1.3% - -------------------------------------------------------------------------------- *Includes collateral received for securities lending and other assets and liabilities. Large Company Value - Performance TOTAL RETURNS AS OF MARCH 31, 2006 -------------------------- AVERAGE ANNUAL RETURNS - ----------------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS INCEPTION DATE - ----------------------------------------------------------------------------------------- INVESTOR CLASS 9.44% 7.95% 6.57% 7/30/99 - ----------------------------------------------------------------------------------------- RUSSELL 1000 VALUE INDEX(1) 13.31% 7.79% 5.58% -- - ----------------------------------------------------------------------------------------- S&P 500 INDEX(1) 11.73% 3.97% 1.19% -- - ----------------------------------------------------------------------------------------- Lipper Large-Cap Value Ranking(1) 342 of 495 21 of 281 27 of 211 -- - ----------------------------------------------------------------------------------------- Morningstar Large Value Ranking(2) 807 of 1328 108 of 739 105 of 573 -- - ----------------------------------------------------------------------------------------- Institutional Class 9.65% -- 7.14% 8/10/01 - ----------------------------------------------------------------------------------------- Advisor Class 9.17% 7.69% 8.76% 10/26/00 - ----------------------------------------------------------------------------------------- A Class No sales charge* 9.16% -- 16.41%(3) 1/31/03 With sales charge* 2.88% -- 14.26%(3) - ----------------------------------------------------------------------------------------- B Class No sales charge* 8.33% -- 15.66%(3) 1/31/03 With sales charge* 4.33% -- 14.96%(3) - ----------------------------------------------------------------------------------------- C Class 8.35% -- 7.57% 11/7/01 - ----------------------------------------------------------------------------------------- R Class 8.90% -- 13.10%(3) 8/29/03 - ----------------------------------------------------------------------------------------- *Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Data provided by Lipper Inc. -- A Reuters Company. (c) 2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Rankings -- Rankings are based only on the universe shown and are based on average annual total returns. This listing might not represent the complete universe of funds tracked by Lipper. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. (2) (c) 2006 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar Rankings are based on risk adjusted returns. (3) Class return would have been lower if the class had not received partial reimbursements or waivers of its distribution and service fees. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance and ranking reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. (continued) Large Company Value - Performance GROWTH OF $10,000 OVER LIFE OF CLASS $10,000 investment made July 30, 1999
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ONE-YEAR RETURNS OVER LIFE OF CLASS Periods ended March 31 - -------------------------------------------------------------------------------- 2000* 2001 2002 2003 2004 2005 2006 - -------------------------------------------------------------------------------- Investor Class -7.22% 12.38% 10.20% -21.19% 39.34% 10.73% 9.44% - -------------------------------------------------------------------------------- Russell 1000 Value Index -1.56% 0.27% 4.38% -22.79% 40.82% 13.17% 13.31% - -------------------------------------------------------------------------------- S&P 500 Index 13.73% -21.68% 0.24% -24.76% 35.12% 6.69% 11.73% - -------------------------------------------------------------------------------- * From 7/30/99, the Investor Class's inception date. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance and ranking reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. Large Company Value - Portfolio Commentary PORTFOLIO MANAGERS: MARK MALLON, CHUCK RITTER, AND BRENDAN HEALY. American Century Large Company Value advanced 9.44%* during the fiscal year ended March 31, 2006, trailing the 13.31% return of its benchmark, the Russell 1000 Value Index, and the 11.73% gain of the S&P 500 Index, which measures the broader market. Large Company Value has proved its worth over the longer term. On a 5-year basis, its average annual return has outperformed its benchmark by a margin of 7.95% to 7.79%. In that time, the fund ranks in the leading 8% of its Lipper Large-Cap Value peer group and the top 18% of its Morningstar Large Value peers. OPPORTUNITIES IN BROADLY DIVERSIFIED, MEGA-CAP STOCKS The fund's investment process looks for stocks that appear attractively priced given their current fundamentals and business prospects. A sector or market group that underperforms the market will get increasing attention in the portfolio. These moves to lagging areas can hurt the fund's performance in the short-term, but we make them with the belief that long-term performance will benefit from investments in areas of the market we perceive as cheap. One area of the market that certainly has gotten cheaper during the last few years is that of the mega-cap value stocks. During the last five years, returns of the biggest large-cap value stocks, so-called mega-cap value stocks, have trailed other large-cap value stocks. In our view, that underperformance has gradually made many giants of American business more attractively priced than other large-cap stocks. Typically, these companies feature broadly diversified business models, generally leading to more stable fundamentals. Reacting to their attractive prices, the fund has increased its exposure to mega-cap stocks over the last few years and generally preferred more diversified business models rather than niche plays. SOLID RETURNS IN ENERGY In the 12-month period, the fund had a modest underweight in energy stocks, the broad market's best-performing sector since 2004. The fund's exposure generally consisted of multi-national integrated oil companies, such as Exxon Mobil and Chevron. While such energy stocks performed well on an absolute basis, they trailed more specialized energy stocks focused on refining, exploration or oil field TOP TEN HOLDINGS AS OF MARCH 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 3/31/06 9/30/05 - -------------------------------------------------------------------------------- Citigroup Inc. 4.7% 4.6% - -------------------------------------------------------------------------------- Exxon Mobil Corp. 4.5% 4.5% - -------------------------------------------------------------------------------- Bank of America Corp. 3.3% 3.2% - -------------------------------------------------------------------------------- Freddie Mac 2.9% 3.1% - -------------------------------------------------------------------------------- Royal Dutch Shell plc ADR 2.7% 2.8% - -------------------------------------------------------------------------------- J.P. Morgan Chase & Co. 2.5% 2.2% - -------------------------------------------------------------------------------- Chevron Corp. 2.3% 2.2% - -------------------------------------------------------------------------------- ConocoPhillips 2.3% 2.2% - -------------------------------------------------------------------------------- Wells Fargo & Co. 2.2% 2.0% - -------------------------------------------------------------------------------- Microsoft Corporation 1.8% 1.7% - -------------------------------------------------------------------------------- *All fund returns referenced in this commentary are for Investor Class shares. (continued) Large Company Value - Portfolio Commentary services. While narrowly focused energy stocks may offer more operational leverage amid the sector's current favorable trends, we believe the benefits of diversification will become more apparent if the energy environment turns hostile. ABSOLUTE BOOST FROM FINANCIALS Large Company Value derived almost half its absolute return in the period from financial stocks, with commercial banks and financial services providers leading the way. The sector also accounted for the portfolio's second-leading relative portfolio holding, property and casualty insurer Loews Corp., whose shares surged 39%. However, the fund's emphasis on diversified business models also hurt performance in the capital markets industry. Two holdings in that industry, Merrill Lynch and Morgan Stanley, advanced nicely during the period but still trailed more specialized capital market stocks. Moreover, an underweight position in booming real estate stocks trimmed relative returns in the financials sector. An underweight position in real estate investment trusts reflected concern about the valuation of stocks in the industry, mostly because the group has ranked as a standout performer since the market's peak in the spring of 2000. INVESTMENT PHILOSOPHY The Large Company Value investment management team remains committed to its strategy of finding large, fundamentally sound businesses trading at price levels it deems below fair market value. By keeping the portfolio positioned in attractively priced stocks regardless of short-term market movements, we believe we can deliver long-term investment rewards. TOP FIVE INDUSTRIES AS OF MARCH 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 3/31/06 9/30/05 - -------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels 12.3% 11.6% - -------------------------------------------------------------------------------- Commercial Banks 9.8% 9.4% - -------------------------------------------------------------------------------- Diversified Financial Services 7.1% 6.8% - -------------------------------------------------------------------------------- Pharmaceuticals 6.5% 5.4% - -------------------------------------------------------------------------------- Insurance 6.0% 6.2% - -------------------------------------------------------------------------------- TYPES OF INVESTMENTS IN PORTFOLIO - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 3/31/06 9/30/05 - -------------------------------------------------------------------------------- Common Stocks 96.2% 96.0% - -------------------------------------------------------------------------------- Temporary Cash Investments 4.0% 2.5% - -------------------------------------------------------------------------------- Other Assets and Liabilities (0.2)% 1.5% - -------------------------------------------------------------------------------- Small Cap Value - Performance TOTAL RETURNS AS OF MARCH 31, 2006 - -------------------------------------------------------------------------------------------- ------------------------ AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS INCEPTION DATE - -------------------------------------------------------------------------------------------- INVESTOR CLASS 18.67% 16.58% 16.47% 7/31/98 - -------------------------------------------------------------------------------------------- RUSSELL 2000 VALUE INDEX(1)(2) 23.77% 16.24% 12.81% -- - -------------------------------------------------------------------------------------------- Lipper Small-Cap Value Ranking(1) 153 of 256 56 of 146 6 of 92 -- - -------------------------------------------------------------------------------------------- Morningstar Small Value Ranking(3) 183 of 364 68 of 202 8 of 126 -- - -------------------------------------------------------------------------------------------- Institutional Class 18.98% 16.79% 17.84% 10/26/98 - -------------------------------------------------------------------------------------------- Advisor Class 18.51% 16.34% 19.85% 12/31/99 - -------------------------------------------------------------------------------------------- C Class 17.48% -- 12.82% 6/1/01 - -------------------------------------------------------------------------------------------- (1) Data provided by Lipper Inc. - A Reuters Company. (c) 2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Lipper Rankings - Rankings are based only on the universe shown and are based on average annual returns. This listing might not represent the complete universe of funds tracked by Lipper Inc. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. (2) Effective January 1, 2006, the S&P SmallCap 600/BARRA Value Index ceased to exist, the benchmark was changed to the Russell 2000 Value Index. (3) (c) 2006 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers: (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar Rankings are based on risk adjusted returns. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance and ranking reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. (continued) Small Cap Value - Performance GROWTH OF $10,000 OVER LIFE OF CLASS $10,000 investment made July 31, 1998
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ONE-YEAR RETURNS OVER LIFE OF CLASS Periods ended March 31 - -------------------------------------------------------------------------------------------- 1999* 2000 2001 2002 2003 2004 2005 2006 - -------------------------------------------------------------------------------------------- Investor Class -4.24% 14.37% 36.51% 33.97% -21.55% 51.53% 14.00% 18.67% - -------------------------------------------------------------------------------------------- Russell 2000 Value Index -12.23% 13.26% 19.45% 23.74% -23.27% 64.49% 9.79% 23.77% - -------------------------------------------------------------------------------------------- * From 7/31/98, the Investor Class's inception date. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. Small Cap Value - Portfolio Commentary PORTFOLIO MANAGERS: BEN GIELE AND KEVIN LAUB American Century Small Cap Value advanced 18.67%* for the 12 months ended March 31, 2006, trailing the 23.77% return of its benchmark, the Russell 2000 Value Index. Virtually all of the portfolio's relative underperformance occurred in the last quarter of the period. Within the small-cap space as a whole, returns on value stocks failed to match returns on growth stocks in the 12-month period, as the Russell 2000 Growth Index's 27.84% return surpassed the Russell 2000 Value's performance. At the same time, Small Cap Value typically invests the majority of its portfolio in classic value companies -- in other words, high-quality companies that exhibit strong fundamental financial features but nonetheless appear undervalued. However, the recent rally in small-cap value stocks centered mostly on low-quality issues that Small Cap Value tends to avoid. Looking longer term, Small Cap Value's annual return in the past five years has averaged 16.58%, outpacing its benchmark's average of 16.24% and ranking in the top 39% of its Morningstar peer group. Since its July 31, 1998, inception, the fund's performance ranks in the top 7% of that same peer group. Also since its inception, the portfolio's risk-adjusted return -- a measure reflecting the portfolio's limited volatility and below-average Morningstar risk rating -- ranks in the top 3% of small-cap value funds tracked by Morningstar. That risk-adjusted performance is a direct byproduct of the portfolio's consistent focus on high-quality stocks, regardless of the type of short-term outperformance by lower-quality issues that occurred late in the recent 12-month reporting time frame. NAVIGATING ENERGY WELL Small Cap Value found plenty of opportunity in the volatile energy sector during the 12-month period, maintaining an advantageous overweight position, particularly among providers of energy equipment and services. Security selection in the sector further contributed to both relative and absolute gains for the portfolio. In fact, energy accounted for four of the portfolio's top 10 individual relative performers. Contract oil and gas driller Helmerich & Payne ranked No. 1 among all portfolio holdings on both a relative and absolute basis, as the company's stock followed a rallying TOP TEN HOLDINGS AS OF MARCH 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 3/31/06 9/30/05 - -------------------------------------------------------------------------------- iShares Russell 2000 Value Index Fund 2.3% 2.5% - -------------------------------------------------------------------------------- Sybase, Inc. 2.0% 2.0% - -------------------------------------------------------------------------------- iShares S&P SmallCap 600 Value Index Fund 1.5% -- - -------------------------------------------------------------------------------- iShares Russell 2000 Index Fund 1.5% 1.4% - -------------------------------------------------------------------------------- HCC Insurance Holdings, Inc. 1.1% 1.1% - -------------------------------------------------------------------------------- Washington Federal, Inc. 1.1% 1.0% - -------------------------------------------------------------------------------- Platinum Underwriters Holdings 1.0% 1.0% - -------------------------------------------------------------------------------- Perot Systems Corp. Cl A 1.0% 0.8% - -------------------------------------------------------------------------------- Cimarex Energy Co. 1.0% 0.7% - -------------------------------------------------------------------------------- Briggs & Stratton Corp. 1.0% 1.1% - -------------------------------------------------------------------------------- *All fund returns and rankings referenced in this commentary are for Investor Class shares. (continued) Small Cap Value - Portfolio Commentary in crude oil prices during the period. Shares in the Tulsa, Oklahoma-based company soared 77%. INSURANCE HOLDINGS AID PERFORMANCE Meanwhile, outside of energy, no other industry contributed to the portfolio's absolute return more than insurance. Houston-based HCC Insurance Holdings, a property and casualty insurer and one of the portfolio's five largest individual stakes, withstood a considerable impact from hurricane claims late last summer and still recorded a 20% increase in net profit for calendar year 2005. In the 12-month period ended March 31, 2006, its stock rose 46%, ranking among the portfolio's top five performers on both an absolute and relative basis. SELECTION CRIMPS RELATIVE RETURN Small Cap Value realized solid absolute contributions from a variety of sectors - -- industrials, financials, information technology and materials. But individual security selection, which is effected by the quality bias inherent in our portfolio's investment process, trimmed relative performance in each of those sectors. Security selection proved most detrimental in the consumer discretionary sector, primarily from losses in the specialty retail industry. That industry suffered from rising interest rates and gasoline costs that cut into consumers' pocketbooks as the period progressed. Pier 1 Imports and clothier Talbot's led relative detractors in specialty retail, which stripped more from the portfolio's total return than any other industry. Sensient Technologies, a maker of specialty fragrances and flavorings that ranked among the portfolio's 10 heaviest individual stakes, tied Pier 1 as its biggest relative detractor. The company's shares fell 14% as it reported a series of quarterly earnings disappointments amid a costly restructuring effort. INVESTMENT PHILOSOPHY The Small Cap Value investment management team remains committed to its strategy of finding fundamentally sound businesses trading at attractive prices that offer the potential for long-term investment success. TOP FIVE INDUSTRIES AS OF MARCH 31, 2006(1) - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 3/31/06 9/30/05 - -------------------------------------------------------------------------------- Insurance 7.1% 6.0% - -------------------------------------------------------------------------------- Commercial Banks 6.0% 5.8% - -------------------------------------------------------------------------------- Machinery 5.3% 4.5% - -------------------------------------------------------------------------------- Software 4.9% 5.2% - -------------------------------------------------------------------------------- Real Estate 4.5% 4.1% - -------------------------------------------------------------------------------- (1) Excludes securities in the Diversified category. These securities represent investments in diversified pools of underlying securities in multiple industry categories. TYPES OF INVESTMENTS IN PORTFOLIO - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 3/31/06 9/30/05 - -------------------------------------------------------------------------------- Common Stocks 96.3% 94.9% - -------------------------------------------------------------------------------- Convertible Preferred Stocks -- 0.3% - -------------------------------------------------------------------------------- Preferred Stocks -- 0.1% - -------------------------------------------------------------------------------- TOTAL EQUITY EXPOSURE 96.3% 95.3% - -------------------------------------------------------------------------------- Temporary Cash Investments 3.2% 4.7% - -------------------------------------------------------------------------------- Other Assets and Liabilities 0.5% --(2) - -------------------------------------------------------------------------------- (2) Category is less than 0.05% of net assets. SELECT FUND BALANCED FUND GROWTH FUND VISTA FUND Market Perspective BY MARK MALLON, CHIEF INVESTMENT OFFICER, AMERICAN CENTURY INVESTMENTS ECONOMIC GROWTH SURGED, THEN MODERATED Economic growth -- along with commodity prices, short-term interest rates, and inflation -- surged early in the 12-month period ended October 31, 2006. But growth and inflation moderated in the period's second half, which saw the Federal Reserve end its two-year string of interest rate hikes. After a hurricane-related slowdown in the fourth quarter of 2005, U.S. gross domestic product grew in the first quarter of 2006 at a 5.6% annualized pace, the highest level in more than two years. The Fed steadily raised short-term interest rates through June to keep inflation in check, including pressures from soaring commodity prices. The Fed finally snapped its string of rate hikes in August 2006, leaving its target at 5.25%, a five-year high. By then, economic growth had slowed, dragged down in part by a cooling housing market. BEST FISCAL-YEAR STOCK RETURNS SINCE 2003 The Fed's pause and expectations for lower interest rates and mild inflation going forward helped produce the best U.S. stock returns for a 12-month fiscal period ended October 31 since 2003. Market rallies beginning and ending the period offset a late-spring/early-summer selloff. Growth stocks flourished in the latter rally, but value stocks outperformed growth for the full reporting period. Likewise, though large-cap stocks gained ground late in the period, small-caps posted higher returns for the entire 12-month stretch. In the first half of the 12-month period, investors celebrated a dip in crude oil prices and strong economic growth by pushing stock prices higher. The small-cap Russell 2000 Index led the way, surging 18.91%. Sentiment changed in early May, however, when the Fed made it clear that more interest rate hikes might be necessary to control inflation. Between April 30 and July 15, the S&P 500 fell 5.28%, and the Russell 2000 more than doubled that loss as investors desired larger, more stable companies. The selloff ended in late July after Fed chairman Ben Bernanke predicted inflation would moderate. The Fed's subsequent rate pause in August and plunging energy prices allowed stocks to rebound nicely in the last three months of the reporting period. ONE-YEAR TOTAL RETURNS AS OF OCTOBER 31, 2006 - -------------------------------------------------------------------------------- S&P 500 Index 16.34% - -------------------------------------------------------------------------------- Dow Jones Industrial Average 18.47% - -------------------------------------------------------------------------------- Nasdaq Composite Index 12.48% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LEHMAN BROTHERS BOND INDICES - -------------------------------------------------------------------------------- Aggregate (multi-sector, combined) 5.19% - -------------------------------------------------------------------------------- Fixed-Rate Mortgage-Backed 5.68% - -------------------------------------------------------------------------------- Treasury 4.43% - -------------------------------------------------------------------------------- Corporate (investment-grade) 5.40% - -------------------------------------------------------------------------------- Agency 4.93% - -------------------------------------------------------------------------------- Select - Performance TOTAL RETURNS AS OF OCTOBER 31, 2006 -------------------------------- AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE - -------------------------------------------------------------------------------- INVESTOR CLASS -1.55% 0.99% 5.18% 13.23% 6/30/71(1) - -------------------------------------------------------------------------------- S&P 500 INDEX(2) 16.34% 7.26% 8.64% 11.27% -- - -------------------------------------------------------------------------------- Institutional Class -1.35% 1.19% -- 4.79% 3/13/97 - -------------------------------------------------------------------------------- Advisor Class -1.79% 0.74% -- 2.32% 8/8/97 - -------------------------------------------------------------------------------- A Class 1/31/03 No sales charge* -1.81% -- -- 7.35%(3) With sales charge* -7.45% -- -- 5.67%(3) - -------------------------------------------------------------------------------- B Class 1/31/03 No sales charge* -2.52% -- -- 6.55%(3) With sales charge* -6.52% -- -- 5.88%(3) - -------------------------------------------------------------------------------- C Class -2.52% -- -- 6.58%(3) 1/31/03 - -------------------------------------------------------------------------------- R Class -2.04% -- -- -4.37% 7/29/05 - -------------------------------------------------------------------------------- *Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Although the fund's actual inception date was 10/31/58, this inception date corresponds with the investment advisor's implementation of its current investment philosophy and practices. (2) Data provided by Lipper Inc. - A Reuters Company. (c) 2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. (3) Class returns would have been lower if service and distribution fees had not been waived from 2/1/03 to 3/11/03, 2/1/03 to 2/11/03, and 2/1/03 to 3/11/03 for the A Class, B Class, and C Class shares, respectively. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. (continued) Select - Performance GROWTH OF $10,000 OVER 10 YEARS $10,000 investment made October 31, 1996
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ONE-YEAR RETURNS OVER 10 YEARS Periods ended October 31 - -------------------------------------------------------------------------------------------------------- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 - -------------------------------------------------------------------------------------------------------- Investor Class 27.89% 22.96% 31.22% 7.64% -28.93% -17.11% 17.11% 3.05% 6.67% -1.55% - -------------------------------------------------------------------------------------------------------- S&P 500 Index 32.11% 21.99% 25.67% 6.09% -24.90% -15.11% 20.80% 9.42% 8.72% 16.34% - -------------------------------------------------------------------------------------------------------- Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. Select - Portfolio Commentary PORTFOLIO MANAGERS: HAROLD BRADLEY, KEITH LEE, AND MICHAEL LI PERFORMANCE SUMMARY Select declined 1.55%* in the 12 months ended October 31, 2006, trailing the 16.34% return of its benchmark, the S&P 500 Index, and the 10.84% gain of the Russell 1000 Growth Index.** As outlined in the Market Perspective on page 2, a pause in the Federal Reserve's interest rate hikes and expectations for lower interest rates and mild inflation going forward helped produce U.S. stock index returns in the 10-25% range for the 12-month period. We'll discuss why Select didn't match those returns and what we're doing to address that issue. INVESTMENT PROCESS ENHANCEMENTS Harold Bradley joined the Select team as co-portfolio manager in April 2006. With his arrival, and as part of our ongoing effort to improve performance, we have enhanced the portfolio's investment process with a multi-factor model that we believe can better identify stocks with price momentum and improving fundamentals. The portfolio retains its bias toward high-quality stocks and stocks that have attractive risk/reward characteristics within the large-cap growth space. But the multi-factor model now employs a more systematic and rigorous screening process that takes into account factors such as earnings quality and relative valuation levels. CHALLENGING MARKET FACTORS The portfolio's relative underperformance for the entire reporting period resulted from an overweight in health care and consumer staples stocks, in addition to security selection in each of those sectors. Underweight stakes and security selection in energy and financials further contributed to relative underperformance. On a total return basis, the portfolio received solid gains from stakes in technology and consumer discretionary stocks, but not enough to offset losses in energy and health care. In addition, shifting market conditions caused the application of our process enhancements to detract from performance. Select suffered in the first half of the reporting period from underweight stakes in non-traditional growth sectors such as energy and materials. Our process enhancements took effect in spring 2006, refocusing the portfolio on large-cap stocks exhibiting classic price momentum and growth characteristics. However, the market shortly thereafter steered away from the type of stocks we prefer, further damaging the portfolio's performance. Investment team leader TOP TEN HOLDINGS AS OF OCTOBER 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- Johnson & Johnson 2.8% 0.8% - -------------------------------------------------------------------------------- Diageo plc ORD 2.7% 2.0% - -------------------------------------------------------------------------------- Baxter International, Inc. 2.7% -- - -------------------------------------------------------------------------------- Bank of America Corp. 2.6% -- - -------------------------------------------------------------------------------- St. Paul Travelers Companies, Inc. (The) 2.6% -- - -------------------------------------------------------------------------------- Loews Corp. 2.5% -- - -------------------------------------------------------------------------------- Phelps Dodge Corp. 2.5% 1.9% - -------------------------------------------------------------------------------- MEMC Electronics Materials Inc. 2.5% 0.6% - -------------------------------------------------------------------------------- Verizon Communications Inc. 2.5% -- - -------------------------------------------------------------------------------- Colgate-Palmolive Co. 2.4% 0.4% - -------------------------------------------------------------------------------- * All fund returns referenced in this commentary are for Investor Class shares. **The Russell 1000 Growth Index returned 4.07% and 5.76% for the 5- and 10-year periods ended October 31, 2006, respectively. (continued) Select - Portfolio Commentary Harold Bradley described what happened in the summer of 2006: "The market pummeled growth and pummeled momentum. If you were looking for a harsh environment for what we do in this fund, this was the harshest environment possible." ENERGY, HEALTH CARE LED DETRACTORS Energy and health care accounted for four of Select's 10 biggest relative detractors in the reporting period. Shares in the portfolio's worst performer, coal mine operator Peabody Energy Corp., followed crude oil and natural gas prices lower throughout the summer. Coal competes with natural gas as an energy source for power plants, among other uses. As a result, it becomes less attractive for energy users when natural gas prices dip. We sold our position in Peabody. Select's health care losses spread across various industries in the sector. Shares of the portfolio's worst individual performer in the sector, medical equipment maker Hospira, plunged in early August after its second-quarter earnings report missed consensus market forecasts. LARGEST HOLDING LED TOP PERFORMERS Select's top average overweight holding, International Game Technology, also topped the portfolio's list of best performers in the period. Shares in the slot-machine maker surged 63% as global demand for gaming machines continued expanding. Another substantial overweight position in the gaming sector, a stake in Las Vegas Sands Corp., also ranked among the portfolio's leading stocks. The company's shares more than doubled in value during the period as its new casino in Macau produced strong earnings growth. PORTFOLIO OBJECTIVE & EXPECTATIONS Select seeks long-term growth and is designed as a core holding for a diversified portfolio. We seek large, established companies with attractive risk/reward characteristics. Within that framework, we specifically desire companies that have accelerating growth in earnings and revenue and appear capable of sustaining such growth over time. We believe that owning such companies will generate outperformance over time compared with the S&P 500. TOP FIVE INDUSTRIES AS OF OCTOBER 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- Pharmaceuticals 6.5% 2.8% - -------------------------------------------------------------------------------- Hotels, Restaurants & Leisure 6.4% 5.5% - -------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment 6.1% 3.4% - -------------------------------------------------------------------------------- Capital Markets 5.7% 10.3% - -------------------------------------------------------------------------------- Insurance 5.1% 1.1% - -------------------------------------------------------------------------------- TYPES OF INVESTMENTS IN PORTFOLIO - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- Domestic Common Stocks 78.7% 71.6% - -------------------------------------------------------------------------------- Foreign Common Stocks(1) 20.6% 27.2% - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS 99.3% 98.8% - -------------------------------------------------------------------------------- Temporary Cash Investments -- 0.3% - -------------------------------------------------------------------------------- Other Assets and Liabilities(2) 0.7% 0.9% - -------------------------------------------------------------------------------- (1) Includes depositary shares, dual listed securities and foreign ordinary shares. (2) Includes collateral received for securities lending and other assets and liabilities. Balanced - Performance TOTAL RETURNS AS OF OCTOBER 31, 2006 -------------------------------- AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE - -------------------------------------------------------------------------------- INVESTOR CLASS 11.04% 6.82% 6.62% 9.07% 10/20/88 - -------------------------------------------------------------------------------- NEW BLENDED INDEX(1) 11.83% 6.44% 8.03% 10.28%(2) -- - -------------------------------------------------------------------------------- OLD BLENDED INDEX 11.80% 6.42% 8.02% 10.26%(2) -- - -------------------------------------------------------------------------------- S&P 500 INDEX(3) 16.34% 7.26% 8.64% 11.73%(2) -- - -------------------------------------------------------------------------------- CITIGROUP US BROAD INVESTMENT-GRADE BOND INDEX(1) 5.24% 4.57% 6.28% 7.52%(2) -- - -------------------------------------------------------------------------------- LEHMAN BROTHERS U.S. AGGREGATE INDEX(3) 5.19% 4.51% 6.26% 7.48%(2) -- - -------------------------------------------------------------------------------- Institutional Class 11.26% 7.04% -- 3.53% 5/1/00 - -------------------------------------------------------------------------------- Advisor Class 10.71% 6.56% -- 6.23% 1/6/97 - -------------------------------------------------------------------------------- (1) In September of 2006, the fund's blended index changed. The old blended index was represented by 60% of the S&P 500 Index and the remaining 40% was represented by the Lehman Brothers U.S. Aggregate Index. The new blended index is represented by 60% of the S&P 500 Index and the remaining 40% is represented by the Citigroup US Broad Investment-Grade Bond Index. The fund's investment advisor believes this index better represents the fund's portfolio composition. (2) Since 10/31/88, the date nearest the Investor Class's inception for which data are available. (3) Data provided by Lipper Inc. - A Reuters Company. (c)2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. As interest rates rise, bond values will decline. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. (continued) Balanced - Performance GROWTH OF $10,000 OVER 10 YEARS $10,000 investment made October 31, 1996
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ONE-YEAR RETURNS OVER 10 YEARS Periods ended October 31 - --------------------------------------------------------------------------------------------------------- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 - --------------------------------------------------------------------------------------------------------- Investor Class 16.34% 10.46% 12.03% 5.90% -10.46% -6.80% 15.92% 8.46% 6.89% 11.04% - --------------------------------------------------------------------------------------------------------- New blended index 22.57% 17.47% 15.17% 6.84% -10.54% -6.64% 14.57% 7.99% 5.78% 11.83% - --------------------------------------------------------------------------------------------------------- Old blended index 22.60% 17.45% 15.19% 6.85% -10.56% -6.59% 14.53% 7.92% 5.74% 11.80% - --------------------------------------------------------------------------------------------------------- S&P 500 Index 32.11% 21.99% 25.67% 6.09% -24.90% -15.11% 20.80% 9.42% 8.72% 16.34% - --------------------------------------------------------------------------------------------------------- Citigroup US Broad Investment-Grade Bond Index 8.82% 9.40% 0.49% 7.28% 14.61% 5.75% 4.99% 5.70% 1.24% 5.24% - --------------------------------------------------------------------------------------------------------- Lehman Brothers U.S. Aggregate Index 8.89% 9.34% 0.53% 7.30% 14.56% 5.89% 4.90% 5.53% 1.13% 5.19% - --------------------------------------------------------------------------------------------------------- Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. As interest rates rise, bond values will decline. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. Balanced - Portfolio Commentary EQUITY PORTFOLIO MANAGERS: BILL MARTIN, TOM VAIANA, FEI ZOU FIXED-INCOME PORTFOLIO MANAGERS: DAVE MACEWEN, BOB GAHAGAN, JIM KEEGAN, JEFF HOUSTON, HANDO AGUILAR, BRIAN HOWELL, JOHN WALSH, DAN SHIFFMAN PERFORMANCE SUMMARY Balanced returned 11.04%* for the 12 months ended October 31, 2006. By comparison, its new and old benchmarks (blended indices of 60% S&P 500 Index for both, and 40% Citigroup US Broad Investment-Grade Bond Index (BIG) for the new benchmark and 40% Lehman Brothers U.S. Aggregate Index for the old) rose 11.83% and 11.80%, respectively. We believe the new benchmark better represents the portfolio's composition. Strong stock market returns--resulting from a pause in the Federal Reserve's interest rate hikes and expectations for lower interest rates and mild inflation going forward--were the main driver behind the fund's and the benchmarks' absolute gains. Relative investment returns between the portfolio and its benchmarks were similar; the fund's results reflected operating expenses, while the benchmark returns did not. EQUITY PERFORMANCE & POSITIONING Net of operating expenses, Balanced's equity portfolio returned approximately 16% for the reporting period, compared with 16.34% for the S&P 500 (index returns are not reduced by expenses). Chief contributors to portfolio performance compared with the index included overweight positions in steel manufacturer Nucor Corp. (up 103%), engine-maker Cummins Inc. (up 51%), and health insurance provider Humana Inc. (up 35%). The biggest detractors from relative performance included overweight positions in poultry products producer Pilgrim's Pride (down 18%) and managed health care organization Sierra Health Services (down 9%). FIXED-INCOME PERFORMANCE & POSITIONING Net of operating expenses, Balanced's fixed-income portfolio returned approximately 4.7% for the reporting period, compared with 5.2% for the Lehman BALANCED'S TOP TEN STOCK HOLDINGS AS OF OCTOBER 31, 2006 - -------------------------------------------------------------------------------- % OF EQUITY % OF S&P HOLDINGS 500 INDEX - -------------------------------------------------------------------------------- Exxon Mobil Corp. 5.0% 3.4% - -------------------------------------------------------------------------------- Citigroup Inc. 3.5% 2.0% - -------------------------------------------------------------------------------- International Business Machines Corp. 2.8% 1.1% - -------------------------------------------------------------------------------- JPMorgan Chase & Co. 2.8% 1.3% - -------------------------------------------------------------------------------- Bank of America Corp. 2.6% 2.0% - -------------------------------------------------------------------------------- Hewlett-Packard Co. 2.6% 0.9% - -------------------------------------------------------------------------------- Merck & Co., Inc. 2.4% 0.8% - -------------------------------------------------------------------------------- Amgen Inc. 2.2% 0.7% - -------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The) 2.1% 0.7% - -------------------------------------------------------------------------------- Chevron Corp. 2.0% 1.2% - -------------------------------------------------------------------------------- BALANCED'S TOP FIVE STOCK INDUSTRIES AS OF OCTOBER 31, 2006 - -------------------------------------------------------------------------------- % OF EQUITY % OF S&P HOLDINGS 500 INDEX - -------------------------------------------------------------------------------- Oil, Gas & Consumable Fuels 11.1% 7.8% - -------------------------------------------------------------------------------- Diversified Financial Services 10.3% 5.8% - -------------------------------------------------------------------------------- Health Care Providers & Services 6.6% 2.6% - -------------------------------------------------------------------------------- Capital Markets 6.3% 3.8% - -------------------------------------------------------------------------------- IT Services 5.0% 2.1% - -------------------------------------------------------------------------------- *All fund returns referenced in this commentary are for Investor Class shares. (continued) Balanced - Portfolio Commentary Aggregate and Citigroup BIG (index returns are not reduced by expenses). The returns of the portfolio and these indices are typically generated by mortgage-backed securities (MBS), commercial MBS (CMBS), asset-backed securities (ABS, backed by payments from credit card debt, auto loans, and home-equity lines of credit), high- and medium-grade corporate bonds, and U.S. government securities, including Treasurys and government agency bonds. During the period, longer-duration positions were rewarded. When bonds rallied in the third quarter of 2006, the bond portfolio's duration was slightly longer than neutral, giving performance a boost. Our strategy to overweight "spread" products (non-Treasury securities such as corporates, MBS, ABS, and CMBS) also benefited the fund since these sectors outperformed Treasurys during the reporting period. PORTFOLIO OBJECTIVES & EXPECTATIONS Balanced seeks long-term capital growth and current income by investing in diversified U.S. stock and bond portfolios, with an approximately 60/40 stock/bond mix. The equity portfolio's objective is to surpass the S&P 500 without taking on significant additional risk. We use a two-step approach for stock selection and portfolio construction, relying on computer models as key decision-making tools. The fixed-income portfolio is also index-oriented, providing a broad, roughly market capitalization-based mix of income-producing investment-grade debt securities. We use an active, multi-step process that seeks to identify the best relative value among bond sectors. We then apply appropriate yield curve/ duration positioning, security selection, and portfolio construction. Balanced is designed to serve as a core holding for investors seeking "ready-made" stock/bond diversification. It's also for investors seeking long-term growth with less volatility than pure growth-stock portfolios. The bond portfolio is designed to help cushion and offset the stock portfolio's performance swings while providing income; meanwhile the stock portfolio provides long-term growth potential, which is important to investors who wish to guard against inflation. KEY FIXED-INCOME PORTFOLIO STATISTICS - -------------------------------------------------------------------------------- AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- Weighted Average Maturity 5.4 years 6.4 years - -------------------------------------------------------------------------------- Average Duration (Effective) 4.6 years 4.7 years - -------------------------------------------------------------------------------- TYPES OF INVESTMENTS IN PORTFOLIO* - -------------------------------------------------------------------------------- % OF FUND % OF FUND INVESTMENTS INVESTMENTS AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- Common Stocks 52.9% 51.2% - -------------------------------------------------------------------------------- Mortgage- & Asset- Backed Securities 20.6% 19.0% - -------------------------------------------------------------------------------- Corporate Bonds 6.3% 6.7% - -------------------------------------------------------------------------------- U.S. Government Agency Securities 6.2% 6.5% - -------------------------------------------------------------------------------- U.S. Treasury Securities 4.6% 3.6% - -------------------------------------------------------------------------------- Other 0.9% 0.3% - -------------------------------------------------------------------------------- Temporary Cash Investments 2.1% 1.7% - -------------------------------------------------------------------------------- Collateral Received for Securities Lending 6.4% 11.0% - -------------------------------------------------------------------------------- *See Schedule of Investments for a presentation of the types of investments in the portfolio based on net assets. Growth - Performance TOTAL RETURNS AS OF OCTOBER 31, 2006 ---------------------------------- AVERAGE ANNUAL RETURNS - ------------------------------------------------------------------------------------------ SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE - ------------------------------------------------------------------------------------------ INVESTOR CLASS 11.51% 4.35% 6.49% 14.71% 6/30/71(1) - ------------------------------------------------------------------------------------------ RUSSELL 1000 GROWTH INDEX(2) 10.84% 4.07% 5.76% N/A(3) -- - ------------------------------------------------------------------------------------------ Institutional Class 11.70% 4.56% -- 5.28% 6/16/97 - ------------------------------------------------------------------------------------------ Advisor Class 11.23% 4.09% -- 5.38% 6/4/97 - ------------------------------------------------------------------------------------------ C Class 10.39% -- -- 1.68% 11/28/01 - ------------------------------------------------------------------------------------------ R Class 10.97% -- -- 8.95% 8/29/03 - ------------------------------------------------------------------------------------------ (1) Although the fund's actual inception date was 10/31/58, this inception date corresponds with the investment advisor's implementation of its current investment philosophy and practices. (2) Data provided by Lipper Inc. - A Reuters Company. (c) 2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. (3) Benchmark began 12/29/78. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. (continued) Growth - Performance GROWTH OF $10,000 OVER 10 YEARS $10,000 investment made October 31, 1996
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ONE-YEAR RETURNS OVER 10 YEARS Periods ended October 31 - ------------------------------------------------------------------------------------------------ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 - ------------------------------------------------------------------------------------------------ Investor Class 27.85% 18.53% 36.31% 11.49% -34.14% -17.09% 16.62% 6.78% 7.47% 11.51% - ------------------------------------------------------------------------------------------------ Russell 1000 Growth Index 30.47% 24.64% 34.25% 9.33% -39.95% -19.62% 21.81% 3.38% 8.81% 10.84% - ------------------------------------------------------------------------------------------------ Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. Growth - Portfolio Commentary PORTFOLIO MANAGERS: PRESCOTT LEGARD AND GREGORY WOODHAMS PERFORMANCE SUMMARY Growth returned 11.51%* for the 12 months ended October 31, 2006, compared with the 10.84% return of its benchmark, the Russell 1000 Growth Index and the 9.05%** average return of the 1,686 funds in the Morningstar Large Growth Funds category. Growth's longer-term performance also remained solid, with average annual returns in excess of its benchmark (see page 3) and the Morningstar category average, which were 4.24% and 5.93% for the five- and 10-year periods ended October 31, 2006, respectively. As outlined in the Market Perspective on page 2, a pause in Federal Reserve interest rate hikes and expectations for lower interest rates and mild inflation going forward helped produce U.S. stock index returns in the 10-25% range for the 12-month period. On an absolute basis, every sector contributed to Growth's return except utilities, a tiny portion (less than 1%) of the fund and the index. Relative to its benchmark, Growth's outperformance resulted largely from effective stock selection across a wide range of sectors, including information technology, industrials, and energy, among others. Indeed, the portfolio's positions outperformed in all but two of the index's sectors -- financial stocks and utilities. INFORMATION TECHNOLOGY LED OUTPERFORMANCE Information technology stocks were the leading source of the portfolio's outperformance during the fiscal year. Stock selection in semiconductors contributed significantly, especially an overweight position in Freescale Semiconductor, a spin-off from Motorola producing chips for a number of wireless and industrial applications. Freescale performed well overall, and received an additional boost near the end of the period after agreeing to be acquired at a significant premium to its existing share price. Coupled with an underweight position in Intel, which performed poorly, these were two of the top-three contributors to relative returns. Growth also benefited from good stock selection in industrials. For the year, the industrial names in the portfolio were up 19% during the period, compared with 15% for those in the index. TOP TEN HOLDINGS AS OF OCTOBER 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- Bank of America Corp. 3.3% -- - -------------------------------------------------------------------------------- Cisco Systems Inc. 3.0% 3.1% - -------------------------------------------------------------------------------- Intel Corp. 2.8% -- - -------------------------------------------------------------------------------- PepsiCo, Inc. 2.7% 2.9% - -------------------------------------------------------------------------------- Oracle Corp. 2.6% 1.0% - -------------------------------------------------------------------------------- General Electric Co. 2.6% 4.2% - -------------------------------------------------------------------------------- Google Inc. Cl A 2.6% 1.5% - -------------------------------------------------------------------------------- Schering-Plough Corp. 2.5% -- - -------------------------------------------------------------------------------- Emerson Electric Co. 2.5% 2.4% - -------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 2.2% -- - -------------------------------------------------------------------------------- * All fund returns referenced in this commentary are for Investor Class shares. ** (c) 2006 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers: (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. (continued) Growth - Portfolio Commentary Stock selection also had a positive effect in the energy sector, where performance was quite volatile quarter-to-quarter. In general, we avoided firms with exposure to the volatile North American natural gas market; instead, we favored service companies more closely tied to oil companies with well-financed capital expenditure budgets. As a result, Growth's energy holdings were up 20%, compared with 8% for this segment of the index. The portfolio's top contributor in this space was Schlumberger, a global oil-field-services provider that benefited from increased exploration for oil and gas given higher energy prices overall. That helped Schlumberger return 40% for the 12-month period. Finally, our top contributor for the 12 months was an overweight position in Archer-Daniels-Midland (ADM), which performed well on the strength of its oilseed and corn processing businesses. ADM drew additional investor interest during the period because it is a leading producer of ethanol, an alternative and additive to gasoline made from corn. FINANCIALS DETRACTED The portfolio's performance would have been even better relative to its benchmark but for positioning among financials shares. For the year, Growth's financial holdings were up 14%, compared with 18% for this portion of the index. Despite an overweight position in this sector, which was among the best-performing segments of the market for the year, disappointing stock selection limited Growth's relative return. In particular, positioning among capital markets shares -- the leading contributor to index returns from the financials sector -- detracted from relative performance. PORTFOLIO OBJECTIVE & EXPECTATIONS American Century Growth seeks long-term capital appreciation for investors who can tolerate short-term share price fluctuations. We pursue our objective by continuing to remain fully invested in large companies that are exhibiting sustainable improvement in their businesses. It is our belief that owning such companies will generate outperformance over time versus the Russell 1000 Growth Index and the other funds in our large-growth peer group. TOP FIVE INDUSTRIES AS OF OCTOBER 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- Pharmaceuticals 7.4% 3.2% - -------------------------------------------------------------------------------- Software 6.7% 5.3% - -------------------------------------------------------------------------------- Specialty Retail 5.4% 4.2% - -------------------------------------------------------------------------------- Diversified Financial Services 5.3% -- - -------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment 5.1% 4.6% - -------------------------------------------------------------------------------- TYPES OF INVESTMENTS IN PORTFOLIO - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- Domestic Common Stocks 90.4% 87.9% - -------------------------------------------------------------------------------- Foreign Common Stocks* 9.3% 9.8% - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS 99.7% 97.7% - -------------------------------------------------------------------------------- Temporary Cash Investments 0.4% 1.5% - -------------------------------------------------------------------------------- Other Assets and Liabilities (0.1)% 0.8% - -------------------------------------------------------------------------------- * Includes depositary shares, dual listed securities and foreign ordinary shares. Vista - Performance TOTAL RETURNS AS OF OCTOBER 31, 2006 -------------------------------- AVERAGE ANNUAL RETURNS - ----------------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE - ----------------------------------------------------------------------------------------- INVESTOR CLASS 9.07% 9.01% 6.14% 10.48% 11/25/83 - ----------------------------------------------------------------------------------------- RUSSELL MIDCAP GROWTH INDEX(1) 14.51% 10.62% 8.73% N/A(2) -- - ----------------------------------------------------------------------------------------- Institutional Class 9.33% 9.23% -- 6.34% 11/14/96 - ----------------------------------------------------------------------------------------- Advisor Class 8.83% 8.76% 5.90% 5.08% 10/2/96 - ----------------------------------------------------------------------------------------- C Class 8.00% 7.94% -- 4.87% 7/18/01 - ----------------------------------------------------------------------------------------- R Class 8.55% -- -- 4.80% 7/29/05 - ----------------------------------------------------------------------------------------- (1) Data provided by Lipper Inc. - A Reuters Company. (c) 2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. (2) Benchmark began 12/31/85. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. (continued) Vista - Performance GROWTH OF $10,000 OVER 10 YEARS $10,000 investment made October 31, 1996
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ONE-YEAR RETURNS OVER 10 YEARS Periods ended October 31 - ------------------------------------------------------------------------------------------------- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 - ------------------------------------------------------------------------------------------------- Investor Class 0.29% -31.94% 66.24% 66.16% -37.48% -12.90% 29.41% 9.77% 14.08% 9.07% - ------------------------------------------------------------------------------------------------- Russell Midcap Growth Index 24.61% 2.43% 37.66% 38.67% -42.78% -17.61% 39.30% 8.77% 15.91% 14.51% - ------------------------------------------------------------------------------------------------- Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. Vista - Portfolio Commentary PORTFOLIO MANAGERS: GLENN FOGLE AND DAVID HOLLOND PERFORMANCE SUMMARY Vista gained 9.07%* during the 12 months ended October 31, 2006, trailing the 14.51% return of its benchmark, the Russell Midcap Growth Index. Vista outperformed its benchmark in the first half of the reporting period as market returns moved higher and the portfolio benefited from overweight stakes in industrials, materials, and telecommunications. Those sectors exhibited attractive price momentum and improving financial returns, two factors crucial to Vista's investment process. However, the portfolio struggled on both an absolute and relative basis after the market sold off in May 2006. The broad market rebounded late in the reporting period after the Federal Reserve paused its two-year, interest rate-hike campaign in August. But the portfolio missed the rebound's gains. That's because the market's favor swung toward consumer-oriented and technology stocks, and our picks in those sectors did not perform well. Our underweight positions in energy, health care, and consumer discretionary further detracted from absolute and relative performance. SECTOR OVERWEIGHTS WORKED WELL The overweight positions that worked so well for the portfolio in early 2006 accounted for most of its positive contributions for the full 12-month reporting period. In telecom, Vista's entire stake centered on the wireless industry, including positions in two cellular providers, NII Holdings and America Movil SA de CV, focused on the Latin American market. Both stocks ranked among the portfolio's top three positions in the period, and they also ranked as the two leading individual contributors to its total return. Vista's biggest contributor to its relative return came from the materials sector. A large overweight position in the metals and mining industry benefited the portfolio, and no individual stock helped more than Titanium Metals. Shares in the maker of lightweight titanium materials surged 149%, reflecting ongoing strong demand from the aircraft industry. Vista also enjoyed solid returns from investments in steelmakers. TOP TEN HOLDINGS AS OF OCTOBER 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- NII Holdings, Inc. Cl B 6.2% 4.6% - -------------------------------------------------------------------------------- Thermo Electron Corp. 4.0% -- - -------------------------------------------------------------------------------- America Movil SA de CV Series L ADR 3.5% 2.4% - -------------------------------------------------------------------------------- Alliance Data Systems Corp. 3.0% 1.0% - -------------------------------------------------------------------------------- Leap Wireless International, Inc. 3.0% -- - -------------------------------------------------------------------------------- SBA Communications Corp. Cl A 2.9% 2.1% - -------------------------------------------------------------------------------- Precision Castparts Corp. 2.8% 2.0% - -------------------------------------------------------------------------------- BE Aerospace, Inc. 2.7% 1.8% - -------------------------------------------------------------------------------- American Tower Corp. Cl A 2.7% 2.2% - -------------------------------------------------------------------------------- Las Vegas Sands Corp. 2.6% 0.9% - -------------------------------------------------------------------------------- * All fund returns referenced in this commentary are for Investor Class shares. (continued) Vista - Portfolio Commentary The portfolio's early 2006 focus on companies poised to benefit from increased business spending also led to solid returns in the industrials sector, specifically from an overweight position in construction and engineering. A stake in Foster Wheeler, one of the portfolio's top five overweight positions, performed well as shares in the builder of power plants and refineries advanced 59%. SECURITY SELECTION REDUCED RETURNS The portfolio's underperformance versus its benchmark stemmed primarily from stocks picks in health care, consumer discretionary and information technology. In financials, a sector that boosted the portfolio's total return, security selection also trimmed relative performance. In health care, an overweight position and poor security selection in health care providers and services hurt the portfolio, as did several stakes in makers of health care equipment and supplies. Meanwhile, weakness in technology spread across a number of industries and included a stake in Intergraph Corp., whose shares plunged in late January after the maker of operational software for businesses and governments reported a decline in quarterly revenue. The portfolio's worst performer, Houston-based natural gas producer Southwestern Energy, suffered from a substantial decline in natural gas prices. PORTFOLIO OBJECTIVE & EXPECTATIONS Vista is designed as a long-term growth component of a diversified investment portfolio for investors who can tolerate significant short-term price fluctuations. The portfolio adheres to an investment process that identifies mid-sized and smaller companies with accelerating earnings and revenue. We believe this selection strategy will produce solid, long-term gains for investors. We think the portfolio will perform well in a consistent, directional market, and we're encouraged by the market's behavior since the Fed paused its interest-rate hike campaign. Growth stocks traditionally have performed well after the Fed stops raising rates, and we believe our process works well in such an environment. TYPES OF INVESTMENTS IN PORTFOLIO - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- Domestic Common Stocks 84.8% 91.2% - -------------------------------------------------------------------------------- Foreign Common Stocks* 13.6% 8.8% - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS 98.4% 100.0% - -------------------------------------------------------------------------------- Temporary Cash Investments 1.9% 2.3% - -------------------------------------------------------------------------------- Other Assets and Liabilities (0.3)% (2.3)% - -------------------------------------------------------------------------------- * Includes depositary shares, dual listed securities and foreign ordinary shares. TOP FIVE INDUSTRIES AS OF OCTOBER 31, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 10/31/06 4/30/06 - -------------------------------------------------------------------------------- Wireless Telecommunication Services 19.9% 11.9% - -------------------------------------------------------------------------------- Life Sciences Tools & Services 6.9% -- - -------------------------------------------------------------------------------- Specialty Retail 6.4% 3.6% - -------------------------------------------------------------------------------- Software 5.7% 1.0% - -------------------------------------------------------------------------------- Aerospace & Defense 5.4% 3.9% - -------------------------------------------------------------------------------- STRATEGIC ALLOCATION: CONSERVATIVE FUND STRATEGIC ALLOCATION: MODERATE FUND STRATEGIC ALLOCATION: AGGRESSIVE FUND Market Perspective BY JOHN SCHNIEDWIND, CHIEF INVESTMENT OFFICER, QUANTITATIVE EQUITY INFLECTION POINTS FOR U.S. ECONOMY & FED POLICY U.S. economic growth slowed during the 12 months ended November 30, 2006, after a brief period of rapid expansion. Following a hurricane-battered 1.8% annualized rate in the fourth quarter of 2005, real GDP growth rebounded to a 5.6% pace in the first quarter of 2006, only to slip to around half that level in subsequent quarters. As the economy shifted gears, so did the Federal Reserve (the Fed). After raising its benchmark rate four times during the first half of 2006, the Fed paused in August, leaving its target at 5.25%, where it remained through the end of the reporting period. U.S. EQUITIES FINISHED STRONG After stumbling in late spring and early summer, U.S. stocks rose smartly in the wake of the Fed's rate pause. Corporate earnings maintained their double-digit year-to-year growth, despite slowing economic expansion. The S&P 500 gained 14.23% for the 12-month period while the Nasdaq Composite advanced 9.77%. Growth stocks enjoyed periods of strength, but the value style dominated for the 12 months. FOREIGN STOCKS AIDED BY CURRENCY TRENDS Foreign equities rose to multi-year highs, but tumbled in May and June. They climbed strongly thereafter, regaining earlier levels. Currency gains were particularly strong, as the falling value of the U.S. dollar boosted the relative value of stocks abroad. Developed-nations stocks posted a 28.20% return for the reporting period, measured in U.S. dollar terms by the MSCI EAFE Index. Emerging market stocks performed even better; the MSCI EM Index gained 34.38% as funds poured into these relatively thinly-traded stocks. U.S. BONDS WITHSTOOD A SPRING-TIME SELLOFF Remarkably, the 10-year Treasury yield finished the reporting period lower than where it began, despite the Fed's rate hikes and one of the worst six-month stretches for the U.S. bond market since 1999. Starting at 4.49%, the 10-year Treasury yield climbed as high as 5.25% in June before ending at 4.46%. That made it a coupon-clipping year for bond investors, with the 10-year Treasury note and the Lehman Aggregate returning 4.20% and 5.94%, respectively. MARKET RETURNS For the 12 months ended November 30, 2006 - -------------------------------------------------------------------------------- U.S. EQUITY - -------------------------------------------------------------------------------- S&P 500 Index 14.23% - -------------------------------------------------------------------------------- Nasdaq Composite Index 9.77% - -------------------------------------------------------------------------------- U.S. FIXED-INCOME - -------------------------------------------------------------------------------- Lehman Brothers U.S. Aggregate Index 5.94% - -------------------------------------------------------------------------------- 10-Year Treasury Note 4.20% - -------------------------------------------------------------------------------- 3-Month Treasury Bill 4.60% - -------------------------------------------------------------------------------- FOREIGN EQUITY - -------------------------------------------------------------------------------- MSCI EAFE Index 28.20% - -------------------------------------------------------------------------------- MSCI EM Index 34.38% - -------------------------------------------------------------------------------- Strategic Allocation: Conservative - Performance TOTAL RETURNS AS OF NOVEMBER 30, 2006 -------------------------------- AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE - -------------------------------------------------------------------------------- INVESTOR CLASS 9.33% 5.86% 6.80% 6.95% 2/15/96 - -------------------------------------------------------------------------------- S&P 500 INDEX(1) 14.23% 6.08% 8.05% 9.33%(2) -- - -------------------------------------------------------------------------------- CITIGROUP US BROAD INVESTMENT-GRADE BOND INDEX(3) 5.99% 5.10% 6.23% 6.32%(2) -- - -------------------------------------------------------------------------------- LEHMAN BROTHERS U.S. AGGREGATE INDEX(1) 5.94% 5.05% 6.20% 6.31%(2) -- - -------------------------------------------------------------------------------- 90-DAY U.S. TREASURY BILL INDEX(1) 4.60% 2.30% 3.59% 3.70%(2) -- - -------------------------------------------------------------------------------- Institutional Class 9.54% 6.10% -- 5.55% 8/1/00 - -------------------------------------------------------------------------------- Advisor Class 9.06% 5.60% 6.55% 6.79% 10/2/96 - -------------------------------------------------------------------------------- A Class 9/30/04 No sales charge* 9.06% -- -- 7.85% With sales charge* 2.87% -- -- 4.92% - -------------------------------------------------------------------------------- B Class 9/30/04 No sales charge* 8.27% -- -- 7.05% With sales charge* 4.27% -- -- 5.76% - -------------------------------------------------------------------------------- C Class 8.27% -- -- 7.02% 9/30/04 - -------------------------------------------------------------------------------- R Class 8.80% -- -- 7.41% 3/31/05 - -------------------------------------------------------------------------------- *Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Data provided by Lipper Inc. - A Reuters Company. (c)2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. (2) Since 2/29/96, the date nearest the Investor Class's inception for which data are available. (3) In September of 2006, one of the fund's benchmarks changed from Lehman Brothers U.S. Aggregate Index to Citigroup US Broad Investment-Grade Bond Index. The fund's investment advisor believes this index better represents the fund's portfolio composition. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. As interest rates rise, bond values will decline. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. (continued) Strategic Allocation: Conservative - Performance GROWTH OF $10,000 OVER 10 YEARS $10,000 investment made November 30, 1996
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ONE-YEAR RETURNS OVER 10 YEARS Periods ended November 30 - --------------------------------------------------------------------------------------------------------- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 - --------------------------------------------------------------------------------------------------------- Investor Class 10.87% 9.43% 8.47% 6.74% 3.37% -3.23% 10.43% 8.15% 5.22% 9.33% - --------------------------------------------------------------------------------------------------------- S&P 500 Index 28.51% 23.66% 20.90% -4.22% -12.22% -16.51% 15.09% 12.86% 8.44% 14.23% - --------------------------------------------------------------------------------------------------------- Citigroup US Broad Investment-Grade Bond Index 7.56% 9.49% -0.07% 9.02% 11.22% 7.22% 5.31% 4.51% 2.54% 5.99% - --------------------------------------------------------------------------------------------------------- Lehman Brothers U.S. Aggregate Index 7.55% 9.45% -0.04% 9.06% 11.16% 7.34% 5.18% 4.44% 2.40% 5.94% - --------------------------------------------------------------------------------------------------------- 90-Day U.S. Treasury Bill Index 5.13% 4.96% 4.65% 5.93% 3.80% 1.65% 1.05% 1.28% 2.94% 4.60% - --------------------------------------------------------------------------------------------------------- Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. As interest rates rise, bond values will decline. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. Strategic Allocation: Conservative - Portfolio Commentary PORTFOLIO MANAGERS: JEFF TYLER AND IRINA TORELLI PERFORMANCE SUMMARY Strategic Allocation: Conservative returned 9.33%* for the 12 months ended November 30, 2006. The fund's performance reflected the returns of its underlying security sectors, as well as their relative weights in the portfolio. The fund allocates holdings over time with the following neutral weightings: 45% stocks, 45% bonds, and 10% cash-equivalent investments. These proportions may change with short-term tactical adjustments and shifting securities prices. For broad comparison purposes, U.S. stocks (represented by the S&P 500 Index) returned 14.23%, U.S. bonds (represented by the Lehman Brothers U.S. Aggregate Index) returned 5.94%, foreign stocks (represented by the MSCI EAFE Index) returned 28.20%, and cash equivalents (represented by the 90-Day U.S. Treasury Bill Index) returned 4.60%. As discussed in the Market Perspective on page 2, this was a favorable period for most financial markets. FIXED-INCOME PORTFOLIO U.S. bonds performed surprisingly well, especially considering what happened in the first half of the reporting period. As noted in the Market Perspective, bonds had to overcome one of the worst selloffs in years in the first six months of 2006. The portfolio's relatively underweight stake in conventional U.S. Treasury securities (13% of total U.S. bond holdings at the end of the reporting period, well below their market weight in the Lehman Aggregate), and its higher weighting in mortgage-backed securities added to returns in the first half of the 12-month period (when Treasurys underperformed). However, narrowing yield spreads and a Treasury market rally reduced the excess return from that position as the reporting period concluded. The fund's stake in money market securities enhanced portfolio stability in the rising yield environment of the first half of the reporting period. U.S. STOCK PORTFOLIO U.S. stocks were positive contributors to fund performance, though a tactical emphasis on large- and mid-cap growth stocks over value stocks through much of the 12-month period tempered port- ASSET ALLOCATION AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND INVESTMENTS - -------------------------------------------------------------------------------- U.S. Bonds 45.9% - -------------------------------------------------------------------------------- U.S. Stocks 30.5% - -------------------------------------------------------------------------------- Money Market Securities 12.3% - -------------------------------------------------------------------------------- Foreign Stocks(1) 9.5% - -------------------------------------------------------------------------------- Foreign Bonds 1.8% - -------------------------------------------------------------------------------- (1) Includes depositary shares, dual listed securities and foreign ordinary shares. FUND'S U.S. BONDS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S U.S. BONDS - -------------------------------------------------------------------------------- U.S. Government Agency Mortgage-Backed Securities 30.1% - -------------------------------------------------------------------------------- Collateralized Mortgage Obligations 16.5% - -------------------------------------------------------------------------------- Corporate Bonds 14.3% - -------------------------------------------------------------------------------- U.S. Treasury Securities 13.4% - -------------------------------------------------------------------------------- U.S. Government Agency Securities 12.2% - -------------------------------------------------------------------------------- Asset-Backed Securities 9.5% - -------------------------------------------------------------------------------- Municipal Securities 4.0% - -------------------------------------------------------------------------------- *All fund returns referenced in this commentary are for Investor Class shares. (continued) Strategic Allocation: Conservative - Portfolio Commentary folio returns. Large- and mid-cap stock outcomes varied widely by style, with value clearly prevailing for the full period. Measured by the Russell Top 200 indexes, large-cap growth stocks returned 6.69% for the 12 months, compared with 20.28% for large-cap value. The disparity was narrower, but still substantial, in the mid-cap range, where the Russell Midcap Growth Index returned 12.88% for the reporting period versus 20.16% for its value counterpart for the 12 months. FOREIGN STOCK PORTFOLIO A tactical overweight position in foreign developed markets stocks aided fund performance. We removed the overweight in the final calendar quarter, slightly diminishing the advantage. Developments in Europe were among the highlights of the period, where the European gross domestic product topped the individual outputs of the U.S., Japan, and Britain for the first time since early 2001. Europe also benefited from better-than-expected corporate earnings and a record-breaking $1.4 trillion in merger-and-acquisition activity. Japan and other Asian markets also gained during the period. OUR STARTING POINT FOR THE NEXT SIX MONTHS As of November 30, 2006, the fund retained underweight positions in small- and mid-cap stocks relative to its long-term allocations. "We're staying up in capital size and marginally underweighting equities in general," said portfolio team leader Jeff Tyler. In the fixed-income portfolio, we held (compared with the Lehman Aggregate) underweight positions in Treasury and corporate securities and maintained our combined overweight position in mortgage- and other asset-backed securities. We like the generally higher credit quality of our mortgage- and asset-backed holdings compared with corporate bonds, and these holdings also provided higher yields than Treasury securities. FUND'S TOP FIVE U.S. STOCKS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S % OF U.S. STOCKS NET ASSETS - -------------------------------------------------------------------------------- Exxon Mobil Corp. 3.5% 1.2% - -------------------------------------------------------------------------------- Bank of America Corp. 3.2% 1.1% - -------------------------------------------------------------------------------- Citigroup Inc. 2.6% 0.9% - -------------------------------------------------------------------------------- Chevron Corp. 1.9% 0.6% - -------------------------------------------------------------------------------- JPMorgan Chase & Co. 1.8% 0.6% - -------------------------------------------------------------------------------- FUND'S TOP FIVE FOREIGN STOCKS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S FOREIGN % OF STOCKS NET ASSETS - -------------------------------------------------------------------------------- Roche Holding AG ORD 3.1% 0.3% - -------------------------------------------------------------------------------- Royal Dutch Shell plc ADR 3.0% 0.3% - -------------------------------------------------------------------------------- Novartis AG ORD 1.9% 0.2% - -------------------------------------------------------------------------------- Total SA ORD 1.8% 0.2% - -------------------------------------------------------------------------------- ORIX Corp. ORD 1.8% 0.2% - -------------------------------------------------------------------------------- GEOGRAPHIC COMPOSITION OF FUND'S FOREIGN STOCKS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S FOREIGN STOCKS - -------------------------------------------------------------------------------- Europe 70.4% - -------------------------------------------------------------------------------- Asia/Pacific 22.2% - -------------------------------------------------------------------------------- Americas (excluding U.S.) 7.4% - -------------------------------------------------------------------------------- Strategic Allocation: Moderate - Performance TOTAL RETURNS AS OF NOVEMBER 30, 2006 -------------------------------- AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE - -------------------------------------------------------------------------------- INVESTOR CLASS 12.49% 7.83% 8.12% 8.45% 2/15/96 - -------------------------------------------------------------------------------- S&P 500 INDEX(1) 14.23% 6.08% 8.05% 9.33%(2) -- - -------------------------------------------------------------------------------- CITIGROUP US BROAD INVESTMENT-GRADE BOND INDEX(3) 5.99% 5.10% 6.23% 6.32%(2) -- - -------------------------------------------------------------------------------- LEHMAN BROTHERS U.S. AGGREGATE INDEX(1) 5.94% 5.05% 6.20% 6.31%(2) -- - -------------------------------------------------------------------------------- 90-DAY U.S. TREASURY BILL INDEX(1) 4.60% 2.30% 3.59% 3.70%(2) -- - -------------------------------------------------------------------------------- Institutional 12.55% 8.04% -- 5.31% 8/1/00 - -------------------------------------------------------------------------------- Advisor 12.06% 7.54% 7.84% 8.07% 10/2/96 - -------------------------------------------------------------------------------- A Class 9/30/04 No sales charge* 12.20% -- -- 11.41% With sales charge* 5.71% -- -- 8.42% - -------------------------------------------------------------------------------- B Class 9/30/04 No sales charge* 11.39% -- -- 10.60% With sales charge* 7.39% -- -- 9.36% - -------------------------------------------------------------------------------- C Class 11.37% 6.81% -- 7.45% 10/2/01 - -------------------------------------------------------------------------------- R Class 11.95% -- -- 10.73% 8/29/03 - -------------------------------------------------------------------------------- *Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Data provided by Lipper Inc. - A Reuters Company. (c)2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. (2) Since 2/29/96, the date nearest the Investor Class's inception for which data are available. (3) In September of 2006, one of the fund's benchmarks changed from Lehman Brothers U.S. Aggregate Index to Citigroup US Broad Investment-Grade Bond Index. The fund's investment advisor believes this index better represents the fund's portfolio composition. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. As interest rates rise, bond values will decline. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. (continued) Strategic Allocation: Moderate - Performance GROWTH OF $10,000 OVER 10 YEARS $10,000 investment made November 30, 1996
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ONE-YEAR RETURNS OVER 10 YEARS Periods ended November 30 - --------------------------------------------------------------------------------------------------------- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 - --------------------------------------------------------------------------------------------------------- Investor Class 13.02% 10.32% 16.97% 5.20% -2.37% -6.23% 15.67% 10.61% 8.04% 12.49% - --------------------------------------------------------------------------------------------------------- S&P 500 Index 28.51% 23.66% 20.90% -4.22% -12.22% -16.51% 15.09% 12.86% 8.44% 14.23% - --------------------------------------------------------------------------------------------------------- Citigroup US Broad Investment-Grade Bond Index 7.56% 9.49% -0.07% 9.02% 11.22% 7.22% 5.31% 4.51% 2.54% 5.99% - --------------------------------------------------------------------------------------------------------- Lehman Brothers U.S. Aggregate Index 7.55% 9.45% -0.04% 9.06% 11.16% 7.34% 5.18% 4.44% 2.40% 5.94% - --------------------------------------------------------------------------------------------------------- 90-Day U.S. Treasury Bill Index 5.13% 4.96% 4.65% 5.93% 3.80% 1.65% 1.05% 1.28% 2.94% 4.60% - --------------------------------------------------------------------------------------------------------- Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. As interest rates rise, bond values will decline. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. Strategic Allocation: Moderate - Portfolio Commentary PORTFOLIO MANAGERS: JEFF TYLER AND IRINA TORELLI PERFORMANCE SUMMARY Strategic Allocation: Moderate returned 12.49%* for the 12 months ended November 30, 2006. The fund's performance reflected the returns of its underlying security sectors, as well as their relative weights in the portfolio. The fund allocates holdings over time with the following neutral weightings: 63% stocks, 31% bonds, and 6% cash-equivalent investments. These proportions may change with short-term tactical adjustments and shifting securities prices. For broad comparison purposes, U.S. stocks (represented by the S&P 500 Index) returned 14.23%, U.S. bonds (represented by the Lehman Brothers U.S. Aggregate Index) returned 5.94%, foreign stocks (represented by the MSCI EAFE Index) returned 28.20%, and cash equivalents (represented by the 90-Day U.S. Treasury Bill Index) returned 4.60%. As discussed in the Market Perspective on page 2, this was a favorable period for most financial markets. U.S. STOCK PORTFOLIO U.S. stocks were positive contributors to fund performance, although a tactical emphasis on large- and mid-cap growth stocks over value stocks through much of the 12-month period tempered portfolio returns. Large- and mid-cap stock outcomes varied widely by style, with value clearly prevailing for the full period. Measured by the Russell Top 200 indexes, large-cap growth stocks returned 6.69% for the 12 months, compared with 20.28% for large-cap value. The disparity was narrower, but still substantial, in the mid-cap range, where the Russell Midcap Growth Index returned 12.88% for the reporting period versus 20.16% for its value counterpart. FOREIGN STOCK PORTFOLIO A tactical overweight position in foreign developed markets stocks aided fund performance. We removed the overweight in the final calendar quarter, slightly diminishing the advantage. In emerging markets, timely tactical rebalancing added to returns. We lightened our holdings at mid-year before this sector declined and rebuilt our position in time to catch an upsweep in the final quarter. Developments in Europe were among the highlights of the period, where the European gross domestic product topped the individual outputs ASSET ALLOCATION AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND INVESTMENTS - -------------------------------------------------------------------------------- U.S. Stocks 40.0% - -------------------------------------------------------------------------------- U.S. Bonds 32.9% - -------------------------------------------------------------------------------- Foreign Stocks(1) 18.1% - -------------------------------------------------------------------------------- Money Market Securities 7.3% - -------------------------------------------------------------------------------- Foreign Bonds 1.7% - -------------------------------------------------------------------------------- (1) Includes depositary shares, dual listed securities and foreign ordinary shares. FUND'S U.S. BONDS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S U.S. BONDS - -------------------------------------------------------------------------------- U.S. Government Agency Mortgage-Backed Securities 27.6% - -------------------------------------------------------------------------------- Corporate Bonds 18.7% - -------------------------------------------------------------------------------- U.S. Government Agency Securities 14.2% - -------------------------------------------------------------------------------- U.S. Treasury Securities 14.0% - -------------------------------------------------------------------------------- Collateralized Mortgage Obligations 13.2% - -------------------------------------------------------------------------------- Asset-Backed Securities 9.4% - -------------------------------------------------------------------------------- Municipal Securities 2.9% - -------------------------------------------------------------------------------- *All fund returns referenced in this commentary are for Investor Class shares. (continued) Strategic Allocation: Moderate - Portfolio Commentary of the U.S., Japan, and Britain for the first time since early 2001. Europe also benefited from better-than-expected corporate earnings and a record-breaking $1.4 trillion in merger-and-acquisition activity. Japan and other Asian markets also gained during the period. FIXED-INCOME PORTFOLIO U.S. bonds performed surprisingly well, especially considering what happened in the first half of the reporting period. As noted in the Market Perspective, bonds had to overcome one of the worst selloffs in years in the first six months of 2006. The portfolio's relatively underweight stake in conventional U.S. Treasury securities (14% of total U.S. bond holdings at the end of the reporting period, well below their market weight in the Lehman Aggregate), and its higher weighting in mortgage-backed securities added to returns in the first half of the 12-month period (when Treasurys underperformed). However, narrowing yield spreads and a Treasury market rally reduced the excess return from that position as the reporting period concluded. The fund's stake in money market securities enhanced portfolio stability in the rising yield environment of the first half of the reporting period. OUR STARTING POINT FOR THE NEXT SIX MONTHS As of November 30, 2006, the fund retained underweight positions in small- and mid-cap stocks relative to its long-term allocations. "We're staying up in capital size and marginally underweighting equities in general," said portfolio team leader Jeff Tyler. Overseas, Japanese stocks appeared to hold more long-term potential than European equities. "I still think the Japanese economy is underestimated and underinvested, but we have to see when others will invest and believe in that view," Tyler said. The portfolio team leaders also continued to believe the U.S. dollar faces potential weakness over time, so they retained a small, 2% position in international bonds. FUND'S TOP FIVE U.S. STOCKS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S % OF U.S. STOCKS NET ASSETS - -------------------------------------------------------------------------------- Exxon Mobil Corp. 3.4% 1.4% - -------------------------------------------------------------------------------- Bank of America Corp. 3.0% 1.3% - -------------------------------------------------------------------------------- Citigroup Inc. 2.4% 1.0% - -------------------------------------------------------------------------------- JPMorgan Chase & Co. 1.9% 0.8% - -------------------------------------------------------------------------------- International Business Machines Corp. 1.8% 0.8% - -------------------------------------------------------------------------------- FUND'S TOP FIVE FOREIGN STOCKS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S FOREIGN % OF STOCKS NET ASSETS - -------------------------------------------------------------------------------- America Movil SA de CV Series L ADR 1.8% 0.3% - -------------------------------------------------------------------------------- Roche Holding AG ORD 1.7% 0.3% - -------------------------------------------------------------------------------- Accenture Ltd. Cl A 1.6% 0.3% - -------------------------------------------------------------------------------- Royal Dutch Shell plc ADR 1.5% 0.3% - -------------------------------------------------------------------------------- Novartis AG ORD 1.4% 0.3% - -------------------------------------------------------------------------------- GEOGRAPHIC COMPOSITION OF FUND'S FOREIGN STOCKS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S FOREIGN STOCKS - -------------------------------------------------------------------------------- Europe 47.0% - -------------------------------------------------------------------------------- Asia/Pacific 35.3% - -------------------------------------------------------------------------------- Americas (excluding U.S.) 15.8% - -------------------------------------------------------------------------------- Africa 1.9% - -------------------------------------------------------------------------------- Strategic Allocation: Aggressive - Performance TOTAL RETURNS AS OF NOVEMBER 30, 2006 -------------------------------- AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE - -------------------------------------------------------------------------------- INVESTOR CLASS 14.15% 8.55% 8.74% 9.09% 2/15/96 - -------------------------------------------------------------------------------- S&P 500 INDEX(1) 14.23% 6.08% 8.05% 9.33%(2) -- - -------------------------------------------------------------------------------- CITIGROUP US BROAD INVESTMENT-GRADE BOND INDEX(3) 5.99% 5.10% 6.23% 6.32%(2) -- - -------------------------------------------------------------------------------- LEHMAN BROTHERS U.S. AGGREGATE INDEX(1) 5.94% 5.05% 6.20% 6.31%(2) -- - -------------------------------------------------------------------------------- 90-DAY U.S. TREASURY BILL INDEX(1) 4.60% 2.30% 3.59% 3.70%(2) -- - -------------------------------------------------------------------------------- Institutional Class 14.37% 8.79% -- 4.41% 8/1/00 - -------------------------------------------------------------------------------- Advisor Class 13.77% 8.28% 8.46% 8.63% 10/2/96 - -------------------------------------------------------------------------------- A Class 9/30/04 No sales charge* 13.75% -- -- 13.51% With sales charge* 7.20% -- -- 10.48% - -------------------------------------------------------------------------------- B Class 9/30/04 No sales charge* 12.98% -- -- 12.69% With sales charge* 8.98% -- -- 11.48% - -------------------------------------------------------------------------------- C Class 13.01% 7.50% -- 7.42% 11/27/01 - -------------------------------------------------------------------------------- R Class 13.40% -- -- 12.43% 3/31/05 - -------------------------------------------------------------------------------- *Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Data provided by Lipper Inc. - A Reuters Company. (c)2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. (2) Since 2/29/96, the date nearest the Investor Class's inception for which data are available. (3) In September of 2006, one of the fund's benchmarks changed from Lehman Brothers U.S. Aggregate Index to Citigroup US Broad Investment-Grade Bond Index. The fund's investment advisor believes this index better represents the fund's portfolio composition. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. As interest rates rise, bond values will decline. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. (continued) Strategic Allocation: Aggressive - Performance GROWTH OF $10,000 OVER 10 YEARS $10,000 investment made November 30, 1996
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ONE-YEAR RETURNS OVER 10 YEARS Periods ended November 30 - --------------------------------------------------------------------------------------------------------- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 - --------------------------------------------------------------------------------------------------------- Investor Class 13.84% 9.93% 25.69% 5.14% -7.27% -9.59% 18.82% 12.04% 9.74% 14.15% - --------------------------------------------------------------------------------------------------------- S&P 500 Index 28.51% 23.66% 20.90% -4.22% -12.22% -16.51% 15.09% 12.86% 8.44% 14.23% - --------------------------------------------------------------------------------------------------------- Citigroup US Broad Investment-Grade Bond Index 7.56% 9.49% -0.07% 9.02% 11.22% 7.22% 5.31% 4.51% 2.54% 5.99% - --------------------------------------------------------------------------------------------------------- Lehman Brothers U.S. Aggregate Index 7.55% 9.45% -0.04% 9.06% 11.16% 7.34% 5.18% 4.44% 2.40% 5.94% - --------------------------------------------------------------------------------------------------------- 90-Day U.S. Treasury Bill Index 5.13% 4.96% 4.65% 5.93% 3.80% 1.65% 1.05% 1.28% 2.94% 4.60% - --------------------------------------------------------------------------------------------------------- Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. As interest rates rise, bond values will decline. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. Strategic Allocation: Aggressive - Portfolio Commentary PORTFOLIO MANAGERS: JEFF TYLER AND IRINA TORELLI PERFORMANCE SUMMARY Strategic Allocation: Aggressive returned 14.15%* for the 12 months ended November 30, 2006. The fund's performance for the reporting period reflected the returns of its underlying security sectors, as well as their relative weights in the portfolio. The fund allocates holdings over time with the following neutral weightings: 78% stocks, 20% bonds, and 2% cash-equivalent investments. These proportions may change with short-term tactical adjustments and shifting securities prices. For broad comparison purposes, U.S. stocks (represented by the S&P 500 Index) returned 14.23%, U.S. bonds (represented by the Lehman Brothers U.S. Aggregate Index) returned 5.94%, foreign stocks (represented by the MSCI EAFE Index) returned 28.20%, and cash equivalents (represented by the 90-Day U.S. Treasury Bill Index) returned 4.60%. As discussed in the Market Perspective on page 2, this was a favorable period for most financial markets. U.S. STOCK PORTFOLIO U.S. stocks were positive contributors to fund performance, though a tactical emphasis on large- and mid-cap growth stocks over value stocks through much of the 12-month period tempered portfolio returns. Large- and mid-cap stock outcomes varied widely by style, with value clearly prevailing for the full period. Measured by the Russell Top 200 indexes, large-cap growth stocks returned 6.69% for the 12 months, compared with 20.28% for large-cap value. The disparity was narrower, but still substantial, in the mid-cap range, where the Russell Midcap Growth Index returned 12.88% for the reporting period versus 20.16% for its value counterpart. FOREIGN STOCK PORTFOLIO A tactical overweight position in foreign developed markets stocks aided fund performance. We removed the overweight in the final calendar quarter, slightly diminishing the advantage. In emerging markets, timely tactical rebalancing added to returns. We lightened our holdings at midyear before this sector declined and rebuilt our position in time to catch an upsweep in the final quarter. Developments in Europe were among the highlights of the period, where the European gross domestic ASSET ALLOCATION AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND INVESTMENTS - -------------------------------------------------------------------------------- U.S. Stocks 49.0% - -------------------------------------------------------------------------------- Foreign Stocks(1) 24.5% - -------------------------------------------------------------------------------- U.S. Bonds 20.9% - -------------------------------------------------------------------------------- Money Market Securities 4.1% - -------------------------------------------------------------------------------- Foreign Bonds 1.5% - -------------------------------------------------------------------------------- (1) Includes depositary shares, dual listed securities and foreign ordinary shares. FUND'S U.S. BONDS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S U.S. BONDS - -------------------------------------------------------------------------------- Corporate Bonds 28.2% - -------------------------------------------------------------------------------- U.S. Government Agency Mortgage-Backed Securities 24.7% - -------------------------------------------------------------------------------- U.S. Treasury Securities 14.0% - -------------------------------------------------------------------------------- Collateralized Mortgage Obligations 12.6% - -------------------------------------------------------------------------------- Asset-Backed Securities 9.0% - -------------------------------------------------------------------------------- U.S. Government Agency Securities 9.0% - -------------------------------------------------------------------------------- Municipal Securities 2.5% - -------------------------------------------------------------------------------- *All fund returns referenced in this commentary are for Investor Class shares. (continued) Strategic Allocation: Aggressive - Portfolio Commentary product topped the individual outputs of the U.S., Japan, and Britain for the first time since early 2001. Europe also benefited from better-than-expected corporate earnings and a record-breaking $1.4 trillion in merger-and-acquisition activity. Japan and other Asian markets also gained during the period. FIXED-INCOME PORTFOLIO U.S. bonds performed surprisingly well, especially considering what happened in the first half of the reporting period. As noted in the Market Perspective, bonds had to overcome one of the worst selloffs in years in the first six months of 2006. The portfolio's relatively underweight stake in conventional U.S. Treasury securities (14% of total bond holdings at the end of the reporting period, well below their market weight in the Lehman Aggregate), and its higher weighting in mortgage-backed securities added to returns in the first half of the 12-month period (when Treasurys underperformed). However, narrowing yield spreads and a Treasury market rally reduced the excess return from that position as the reporting period concluded. The fund's stake in money market securities enhanced portfolio stability in the rising yield environment of the first half of the reporting period. OUR STARTING POINT FOR THE NEXT SIX MONTHS As of November 30, 2006, the fund retained its lightened positions in small- and mid-cap stocks relative to its long-term allocations. "We're staying up in capital size and marginally underweighting equities in general," said portfolio team leader Jeff Tyler. Overseas, Japanese stocks appeared to hold more long-term potential than European equities. "I still think the Japanese economy is underestimated and underinvested, but we have to see when others will invest and believe in that view," Tyler said. The portfolio team leaders also continued to believe the U.S. dollar faces potential weakness over time, so they retained a small, 2% position in international bonds. FUND'S TOP FIVE U.S. STOCKS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S % OF U.S. STOCKS NET ASSETS - -------------------------------------------------------------------------------- Bank of America Corp. 2.7% 1.3% - -------------------------------------------------------------------------------- Exxon Mobil Corp. 2.5% 1.3% - -------------------------------------------------------------------------------- Citigroup Inc. 1.8% 0.9% - -------------------------------------------------------------------------------- JPMorgan Chase & Co. 1.7% 0.9% - -------------------------------------------------------------------------------- International Business Machines Corp. 1.7% 0.8% - -------------------------------------------------------------------------------- FUND'S TOP FIVE FOREIGN STOCKS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S FOREIGN % OF STOCKS NET ASSETS - -------------------------------------------------------------------------------- America Movil SA de CV Series L ADR 2.3% 0.6% - -------------------------------------------------------------------------------- Roche Holding AG ORD 1.9% 0.5% - -------------------------------------------------------------------------------- Nintendo Co., Ltd. ORD 1.6% 0.4% - -------------------------------------------------------------------------------- Novartis AG ORD 1.6% 0.4% - -------------------------------------------------------------------------------- Aker Kvaerner ASA ORD 1.4% 0.4% - -------------------------------------------------------------------------------- GEOGRAPHIC COMPOSITION OF FUND'S FOREIGN STOCKS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF FUND'S FOREIGN STOCKS - -------------------------------------------------------------------------------- Europe 47.8% - -------------------------------------------------------------------------------- Asia/Pacific 35.2% - -------------------------------------------------------------------------------- Americas (excluding U.S.) 15.0% - -------------------------------------------------------------------------------- Africa 2.0% - -------------------------------------------------------------------------------- INTERNATIONAL GROWTH FUND GLOBAL GROWTH FUND Market Perspective BY ENRIQUE CHANG, CHIEF INVESTMENT OFFICER, INTERNATIONAL EQUITY DISCIPLINE. MARKETS POSTED ROBUST GAINS Global equity markets continued to demonstrate strength and resilience during the 12 months ended November 30, 2006, with indices from the U.S.'s Dow Jones Industrials to Hong Kong's Hang Seng reaching record highs. The gains were so robust that each of the world's 23 developed markets tracked by Morgan Stanley Capital International (MSCI) advanced, with all but New Zealand registering a double-digit gain. The MSCI Emerging Markets Index, which tracks shares of 27 developing countries globally, also advanced, rebounding from a sharp correction that began in May to finish up 34%. That kind of vitality in the markets was remarkable in the face of continued high oil prices, geopolitical tensions in the Middle East, and interest-rate increases by central banks around the world. STRONG GLOBAL ECONOMY Developments in Europe were among the highlights of the period. The $10 trillion economy of the dozen euro-sharing nations grew the most in six years during the second quarter of 2006. That growth marked the first time since early 2001 that European gross domestic product (GDP) topped that of the U.S., Japan, and Britain. Europe also benefited from better-than-expected corporate earnings, and a record-breaking $1.4 trillion in merger-and-acquisition activity. The region's exporters also gained on increased capital spending by many companies around the world. These developments helped several equity markets in Europe reach their highest levels in five years, and lifted business confidence in Germany to a 15-year high in November. Japan and other Asian markets also gained during the period, with the MSCI AC Asia Pacific Index rising 20.90%. Japan's growth has been driven by the fastest pace of business investment in 16 years, a show of confidence that the economy has recovered from years of stagnation. Among emerging markets, China's GDP has hovered around 10% for four years, and the historic changes there continue to dramatically impact the global economy. Other developing countries also advanced this year, benefiting from continued high prices for oil and other commodities, rising income, and continued economic and political reform. The economic growth in many countries and increasing confidence among investors stand as testament to the resilience of international markets and the global economy. We believe there are significant opportunities abroad for investors, and you can be assured that our team is dedicated to searching the world for companies to help drive investment performance. ONE-YEAR TOTAL RETURNS FOR THE 12 MONTHS ENDED NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- MSCI EAFE Index 28.20% - -------------------------------------------------------------------------------- MSCI World Free Index 20.28% - -------------------------------------------------------------------------------- MSCI EM Index 34.38% - -------------------------------------------------------------------------------- International Growth - Performance TOTAL RETURNS AS OF NOVEMBER 30, 2006 -------------------------------- AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE - -------------------------------------------------------------------------------- INVESTOR CLASS 27.03% 10.19% 9.02% 10.41% 5/9/91 - -------------------------------------------------------------------------------- MSCI EAFE INDEX 28.20% 14.40% 7.23% 7.56%(1) -- - -------------------------------------------------------------------------------- MSCI EAFE GROWTH INDEX 25.29% 11.78% 4.59% 5.19%(1) -- - -------------------------------------------------------------------------------- Institutional Class 27.19% 10.41% -- 8.20% 11/20/97 - -------------------------------------------------------------------------------- Advisor Class 26.57% 9.91% 8.76% 9.00% 10/2/96 - -------------------------------------------------------------------------------- A Class 1/31/03 No sales charge* 26.65% -- -- 20.56% With sales charge* 19.41% -- -- 18.72% - -------------------------------------------------------------------------------- B Class 1/31/03 No sales charge* 25.71% -- -- 19.66% With sales charge* 21.71% -- -- 19.19% - -------------------------------------------------------------------------------- C Class 25.64% 9.06% -- 5.15% 6/4/01 - -------------------------------------------------------------------------------- R Class 26.39% -- -- 19.13%(2) 8/29/03 - -------------------------------------------------------------------------------- *Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Since 4/30/91, the date nearest the Investor Class's inception for which data are available. (2) Class returns would have been lower if the class had not received partial reimbursements of distribution and service fees during the periods. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. (continued) International Growth - Performance GROWTH OF $10,000 OVER 10 YEARS $10,000 investment made November 30, 1996
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ONE-YEAR RETURNS OVER 10 YEARS Periods ended November 30 - --------------------------------------------------------------------------------------------------- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 - --------------------------------------------------------------------------------------------------- Investor Class 18.12% 16.74% 43.22% -2.47% -24.18% -14.54% 13.70% 17.45% 12.09% 27.03% - --------------------------------------------------------------------------------------------------- MSCI EAFE Index -0.40% 16.45% 21.10% -9.67% -19.13% -12.50% 24.22% 24.19% 13.25% 28.20% - --------------------------------------------------------------------------------------------------- MSCI EAFE Growth Index -1.03% 17.05% 23.18% -17.66% -23.61% -13.53% 20.63% 19.07% 12.14% 25.29% - --------------------------------------------------------------------------------------------------- Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. International Growth - Portfolio Commentary PORTFOLIO MANAGERS: ALEX TEDDER AND KEITH CREVELING PERFORMANCE SUMMARY International Growth advanced 27.03%* during the 12 months ended November 30, 2006. Its benchmark, the MSCI EAFE Index, returned 28.20%. Against its peers, International Growth outperformed the 26.78% average return of Morningstar's Foreign Large Growth Funds category during the period**. Strong global economic growth and the U.S. dollar's decline drove these gains. Against that backdrop, every sector in which we invested contributed to the portfolio's total return, and all of our top-10 holdings on average during the period added value. But several sectors, notably materials, underperformed the index, ultimately causing the portfolio to lag the benchmark. MANAGEMENT CHANGES Portfolio manager Michael Perelstein left American Century on June 30, 2006. Effective July 5, 2006, Alex Tedder joined Keith Creveling as a portfolio manager for International Growth. Prior to joining us, Tedder was a managing director, head of international equities, and portfolio manager for Deutsche Asset Management Ltd. from 1994 to 2005. TELECOM LIFTED RELATIVE RETURNS Our telecommunication services position made the largest contribution to relative performance due to effective security selection in the wireless industry. The portfolio benefited most from our overweight position in Telenor, a Norwegian phone company with global reach. Two other companies in the telecom sector--America Movil, which provides mobile phone service in Latin America, and China Mobile Ltd.--were also among the top-10 contributors to relative performance. Both are portfolio-only positions, meaning they are not in the index. They serve as examples of our research and analysis leading to opportunities beyond the benchmark. BOOST FROM FINANCIALS Financial holdings, which represented the portfolio's largest sector stake, outperformed the index and made the largest contribution to total return. The financial sector included the security that made TOP TEN HOLDINGS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- Roche Holding AG 2.0% 2.5% - -------------------------------------------------------------------------------- ORIX Corp. 1.7% 1.8% - -------------------------------------------------------------------------------- Groupe Danone 1.7% 1.2% - -------------------------------------------------------------------------------- Total SA 1.6% 1.8% - -------------------------------------------------------------------------------- Toyota Motor Corp. 1.6% 1.7% - -------------------------------------------------------------------------------- AXA SA 1.6% 1.2% - -------------------------------------------------------------------------------- Tesco plc 1.5% -- - -------------------------------------------------------------------------------- Novartis AG 1.5% 1.6% - -------------------------------------------------------------------------------- Societe Generale 1.4% 1.4% - -------------------------------------------------------------------------------- Reckitt Benckiser plc 1.4% 1.5% - -------------------------------------------------------------------------------- *All fund returns referenced in this commentary are for Investor Class shares. **The Morningstar's Foreign Large Growth Funds returned 12.24% and 6.57% for the five- and ten-year periods ended November 30, 2006, respectively. (c) 2006 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers: (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar Rankings are based on risk adjusted returns. (continued) International Growth - Portfolio Commentary the largest contribution to the portfolio's relative and absolute performance. Shares of Man Group, a London-based fund manager, advanced 85.7% during the reporting period. Man reported that profit increased 40% during the six months through September 30, 2006. MATERIALS LAGGED Our investments in a few areas lagged the index. An underweight position in the materials sector, particularly among metals and mining companies, slowed relative performance most. Although our low exposure to the materials sector detracted from performance, we questioned the sustainability of recent performance among some metals and mining companies, and remained underweight. Holdings in the chemicals industry also detracted, mostly due to a pullback in Japan, including Nitto Denko Corp. and JSR Corp. Of the 10 companies that detracted most from relative performance, five were from Japan. OPPORTUNITIES IN EMERGING MARKETS While International Growth invests primarily in large companies in developed countries, we have found opportunity in emerging markets among several companies that fulfill our criteria for sustainable revenue and earnings. They include China Mobile and China Merchants Bank, India's Reliance Communications, and CEZ AS, a power producer in the Czech Republic. Each of these securities contributed to absolute and relative returns. PREPARED FOR CHANGE After the reporting period, portfolio manager Alex Tedder said, "The recent performance of the international equity markets has indeed been remarkable, and we believe the economic, political, and demographic changes under way around the world will continue to create opportunity for investors. But we have to be prepared for changes in the investment environment and economic climate, and that's why we believe it's critically important to invest in companies based on strong fundamentals and their ability to produce sustainable revenue and earnings growth, regardless of market conditions." TYPES OF INVESTMENTS IN PORTFOLIO - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- Foreign Common Stocks 99.8% 99.4% - -------------------------------------------------------------------------------- Temporary Cash Investments 0.3% 0.8% - -------------------------------------------------------------------------------- Other Assets and Liabilities(1) (0.1)% (0.2)% - -------------------------------------------------------------------------------- (1) Includes collateral received for securities lending and other assets and liabilities. INVESTMENTS BY COUNTRY AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- United Kingdom 17.2% 12.2% - -------------------------------------------------------------------------------- Japan 16.1% 24.4% - -------------------------------------------------------------------------------- Switzerland 12.4% 9.7% - -------------------------------------------------------------------------------- France 9.5% 14.3% - -------------------------------------------------------------------------------- Germany 5.4% 8.2% - -------------------------------------------------------------------------------- Australia 4.0% 3.6% - -------------------------------------------------------------------------------- Italy 3.7% 4.2% - -------------------------------------------------------------------------------- Netherlands 3.4% 2.9% - -------------------------------------------------------------------------------- Spain 3.0% 1.6% - -------------------------------------------------------------------------------- Other Countries 25.1% 18.3% - -------------------------------------------------------------------------------- Cash and Equivalents(2) 0.2% 0.6% - -------------------------------------------------------------------------------- (2) Includes temporary cash investments, collateral received for securities lending and other assets and liabilities. Global Growth - Performance TOTAL RETURNS AS OF NOVEMBER 30, 2006 ---------------------- AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS INCEPTION DATE - -------------------------------------------------------------------------------- INVESTOR CLASS 19.30% 11.43% 11.44% 12/1/98 - -------------------------------------------------------------------------------- MSCI WORLD FREE INDEX 20.28% 9.66% 5.11%(2) - -------------------------------------------------------------------------------- Institutional Class 19.50% 11.68% 2.83% 8/1/00 - -------------------------------------------------------------------------------- Advisor Class 18.97% 11.16% 9.89% 2/5/99 - -------------------------------------------------------------------------------- A Class 12/1/05 No sales charge* -- -- 17.10%(1) With sales charge* -- -- 10.37%(1) - -------------------------------------------------------------------------------- B Class 12/1/05 No sales charge* -- -- 16.29%(1) With sales charge* -- -- 11.29%(1) - -------------------------------------------------------------------------------- C Class 18.04% -- 11.13% 3/1/02 - -------------------------------------------------------------------------------- R Class 18.79% -- 18.65% 7/29/05 - -------------------------------------------------------------------------------- *Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B Class shares redeemed within six years of purchase are subject to a CDSC that declines from 5.00% during the first year after purchase to 0.00% the sixth year after purchase. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. Please see the Share Class Information pages for more about the applicable sales charges for each share class. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied. (1) Total returns for periods less than one year are not annualized. (2) Since 11/30/98, the date nearest the Investor Class's inception for which data are available. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. (continued) Global Growth - Performance GROWTH OF $10,000 OVER LIFE OF CLASS $10,000 investment made December 1, 1998
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ONE-YEAR RETURNS OVER LIFE OF CLASS Periods ended November 30 - ---------------------------------------------------------------------------------------- 1999* 2000 2001 2002 2003 2004 2005 2006 - ---------------------------------------------------------------------------------------- Investor Class 66.60% 8.81% -23.62% -12.78% 20.22% 15.59% 18.87% 19.30% - ---------------------------------------------------------------------------------------- MSCI World Free Index 21.11% -7.64% -16.01% -15.27% 19.17% 17.43% 11.20% 20.28% - ---------------------------------------------------------------------------------------- * From 12/1/98, the Investor Class's inception date. Index data from 11/30/98, the date nearest the Investor Class's inception for which data are available. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. International investing involves special risks, such as political instability and currency fluctuations. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the index are provided for comparison. The fund's total returns include operating expenses (such as transaction costs and management fees) that reduce returns, while the total returns of the index do not. Global Growth - Portfolio Commentary PORTFOLIO MANAGERS: KEITH CREVELING AND HELEN O'DONNELL PERFORMANCE SUMMARY Global Growth advanced 19.30%* during the 12 months ended November 30, 2006, while its benchmark, the MSCI World Free Index, returned 20.28%. Against its peers, Global Growth outperformed the 18.16% average return of Lipper's Global Large-Capitalization Growth Funds during the period**. The gains came during a period in which many of the world's markets demonstrated resilience, advancing in the face of rising interest rates, continued high energy prices, and geopolitical tension in the Middle East and elsewhere. Against that backdrop, every sector in which Global Growth was invested contributed to total return, and all top-10 holdings on average during the period added value. Currency played a role, as the dollar's decline versus other currencies increased the portfolio's return. STRONG SECURITY SELECTION Our gains during the period were due mostly to superior stock selection, particularly among financial holdings. The United Kingdom's Man Group, for example, contributed more to relative and absolute performance than any other security. Indeed, three of the top-10 contributing securities to Global Growth's relative performance were in the financials sector. Man Group, an asset manager in the capital markets industry, reported record profit during the period as its increasing assets under management led to higher earnings. Japan's Sumitomo Realty and Development benefited from a resurgent Tokyo real estate market. And China Construction Bank advanced on increased demand for financial services in the world's fastest-growing major economy. However, when China Construction Bank's stock price far exceeded reasonable expectations, even considering its great results, we sold the position. Overall, financials made the largest contribution to relative performance and return. GOING BEYOND THE BENCHMARK Global Growth has the ability to invest in successful companies anywhere in the world that can drive investment performance. During the 12-month period, our research and analysis led to numerous holdings that we call "portfolio-only," meaning they are not listed in the benchmark. Many of those companies boosted performance, including America Movil, which provides TOP TEN HOLDINGS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- Cisco Systems Inc. 2.1% -- - -------------------------------------------------------------------------------- Schlumberger Ltd. 2.0% 2.0% - -------------------------------------------------------------------------------- American Express Co. 2.0% 1.4% - -------------------------------------------------------------------------------- Comcast Corporation Cl A 1.9% -- - -------------------------------------------------------------------------------- American Tower Corp. Cl A 1.8% 1.3% - -------------------------------------------------------------------------------- National Bank of Greece SA 1.8% 1.2% - -------------------------------------------------------------------------------- ORIX Corp. 1.8% 2.0% - -------------------------------------------------------------------------------- Alliance Data Systems Corp. 1.7% -- - -------------------------------------------------------------------------------- Boeing Co. 1.7% 1.3% - -------------------------------------------------------------------------------- Automatic Data Processing, Inc. 1.6% 1.1% - -------------------------------------------------------------------------------- *All fund returns referenced in this commentary are for Investor Class shares. **The Lipper Global Large-Capitalization Growth Funds returned 7.32% for the five-year period ended November 30, 2006. (continued) Global Growth - Portfolio Commentary mobile phone service in Latin America, and Taiwan's Hon Hai Precision Corp., which makes iPod music players and other electronic devices. Of the 10 securities that contributed most to relative performance, five were portfolio-only, a testament to Global Growth's ability to go beyond the benchmark. HEALTH CARE LAGGED Of course, not all positions worked out favorably. Global Growth's health care holdings detracted most from relative performance partly because of the portfolio's overweight positions in Aetna Inc. and UnitedHealth Group Inc. Both companies were long-time holdings that had contributed to Global Growth in the past, but early in the period they were among the portfolio's biggest detractors, and we eliminated the positions. Both face increasingly unfavorable cost trends, which dim their profit growth potential. We maintained our position, however, in Genentech Inc., even though the company detracted from performance. Genentech, a biotechnology company, fell early in the period, but subsequently reported increasing profits on strong sales of its cancer-fighting drugs. In terms of single-security detractors, the portfolio's position in XM Satellite Radio Inc. detracted most from relative and absolute performance. Most of the damage was done early in the period, when XM, the biggest U.S. pay-radio service, reported a loss as the company spent more on programming and promotions to add subscribers. We eliminated the position. OUR STARTING POINT FOR THE NEXT SIX MONTHS As of November 30, 2006, opportunities and positions in specific companies resulted in corresponding overweight positions in the information technology, industrials, and consumer discretionary sectors. At the same time, we remained underweight in sectors with companies that don't meet our criteria for accelerating growth, such as utilities. TYPES OF INVESTMENTS IN PORTFOLIO - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- Foreign Common Stocks 58.8% 59.9% - -------------------------------------------------------------------------------- U.S. Common Stocks 41.2% 38.7% - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS 100.0% 98.6% - -------------------------------------------------------------------------------- Temporary Cash Investments 0.3% 0.9% - -------------------------------------------------------------------------------- Other Assets and Liabilities(1) (0.3)% 0.5% - -------------------------------------------------------------------------------- (1) Includes collateral received for securities lending and other assets and liabilities. INVESTMENTS BY COUNTRY AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- United States 41.2% 38.7% - -------------------------------------------------------------------------------- Switzerland 7.8% 6.2% - -------------------------------------------------------------------------------- Japan 7.4% 12.1% - -------------------------------------------------------------------------------- United Kingdom 7.1% 8.0% - -------------------------------------------------------------------------------- France 5.0% 5.5% - -------------------------------------------------------------------------------- Netherlands 3.5% 3.8% - -------------------------------------------------------------------------------- Germany 3.4% 4.8% - -------------------------------------------------------------------------------- India 2.8% 1.4% - -------------------------------------------------------------------------------- Italy 2.6% 1.0% - -------------------------------------------------------------------------------- Taiwan (Republic of China) 2.1% 1.7% - -------------------------------------------------------------------------------- Other Countries 17.1% 15.4% - -------------------------------------------------------------------------------- Cash and Equivalents(2) --(3) 1.4% - -------------------------------------------------------------------------------- (2) Includes temporary cash investments, collateral received for securities lending and other assets and liabilities. (3) Category is less than 0.05% of total net assets. LIFE SCIENCES FUND TECHNOLOGY FUND Market Perspective BY HAROLD BRADLEY CHIEF INVESTMENT OFFICER, SMALL/MID-CAP GROWTH ECONOMIC GROWTH SURGED, THEN MODERATED Economic growth -- along with commodity prices, short-term interest rates, and inflation -- surged early in the 12-month period ended November 30, 2006. But growth and inflation moderated in the period's second half, during which the Federal Reserve halted its two-year string of interest rate hikes. After a hurricane-related slowdown in the fourth quarter of 2005, U.S. gross domestic product grew in the first quarter of 2006 at a 5.6% annualized pace, the highest level in more than two years. The Fed steadily raised short-term interest rates through June 2006 to keep inflation in check, including pressures from soaring commodity prices. The Fed finally snapped its string of rate hikes in August 2006, leaving its target at 5.25%, a five-year high. By then, economic growth had slowed, dragged down in part by a cooling housing market. DOUBLE-DIGIT STOCK INDEX RETURNS The Fed's pause and expectations for lower interest rates and mild inflation going forward helped produce double-digit stock index returns for the 12 months ended November 30, 2006. Market rallies beginning and ending the period offset a late-spring/early-summer selloff. Growth stocks flourished in the latter rally, but value stocks outperformed growth for the full reporting period. Likewise, though large-cap stocks gained ground late in the period, small-caps posted higher returns for the entire 12-month stretch. Early in the 12-month period, investors celebrated a dip in crude oil prices and strong economic growth by pushing stock prices higher. The small-cap Russell 2000 Index led the way, surging 13.40% between the beginning of the period and April 30, 2006. Sentiment changed in early May, however, when the Fed made it clear that more interest rate hikes might be necessary to control inflation. Between April 30 and July 15, the S&P 500 fell 5.28%, and the Russell 2000 more than doubled that loss as investors desired larger, more stable companies. The selloff ended in late July after Fed chairman Ben Bernanke predicted inflation would moderate. The Fed's subsequent rate pause in August and plunging energy prices allowed stocks to rebound nicely in the last four-and-a-half months of the reporting period. U.S. STOCK INDEX RETURNS FOR THE 12 MONTHS ENDED NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- RUSSELL 1000 INDEX (LARGE-CAP) 14.15% - -------------------------------------------------------------------------------- Russell 1000 Growth 8.36% - -------------------------------------------------------------------------------- Russell 1000 Value 20.28% - -------------------------------------------------------------------------------- RUSSELL MIDCAP INDEX 16.47% - -------------------------------------------------------------------------------- Russell Midcap Growth 12.88% - -------------------------------------------------------------------------------- Russell Midcap Value 20.16% - -------------------------------------------------------------------------------- RUSSELL 2000 INDEX (SMALL-CAP) 17.43% - -------------------------------------------------------------------------------- Russell 2000 Growth 13.45% - -------------------------------------------------------------------------------- Russell 2000 Value 21.47% - -------------------------------------------------------------------------------- Life Sciences - Performance TOTAL RETURNS AS OF NOVEMBER 30, 2006 ---------------------- AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS INCEPTION DATE - -------------------------------------------------------------------------------- INVESTOR CLASS -1.88% 1.40% 1.08% 6/30/00 - -------------------------------------------------------------------------------- S&P COMPOSITE 1500 HEALTH CARE INDEX 9.09% 1.77% 1.47% -- - -------------------------------------------------------------------------------- S&P 500 INDEX(1) 14.23% 6.08% 1.08% -- - -------------------------------------------------------------------------------- Institutional Class -1.67% 1.58% 0.49% 7/17/00 - -------------------------------------------------------------------------------- Advisor Class -2.10% 1.13% -0.63% 11/14/00 - -------------------------------------------------------------------------------- C Class -2.74% 0.41% 0.41% 11/29/01 - -------------------------------------------------------------------------------- (1) Data provided by Lipper Inc. - A Reuters Company. (c) 2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The fund concentrates its investments in a narrow segment of the total market and is therefore subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. (continued) Life Sciences - Performance GROWTH OF $10,000 OVER LIFE OF CLASS $10,000 investment made June 30, 2000
![](https://capedge.com/proxy/N-14A/0000908186-07-000021/growthlifesci0611.gif)
ONE-YEAR RETURNS OVER LIFE OF CLASS Periods ended November 30 - -------------------------------------------------------------------------------- 2000* 2001 2002 2003 2004 2005 2006 - -------------------------------------------------------------------------------- Investor Class 5.60% -5.35% -27.31% 23.16% 7.57% 13.43% -1.88% - -------------------------------------------------------------------------------- S&P Composite 1500 Health Care Index 7.11% -6.10% -18.37% 8.06% 2.91% 10.26% 9.09% - -------------------------------------------------------------------------------- S&P 500 Index -9.16% -12.22% -16.51% 15.09% 12.86% 8.44% 14.23% - -------------------------------------------------------------------------------- * From 6/30/00, the Investor Class's inception date. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The fund concentrates its investments in a narrow segment of the total market and is therefore subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. Life Sciences - Portfolio Commentary PORTFOLIO MANAGERS: ARNOLD DOUVILLE AND CHRISTY TURNER PERFORMANCE SUMMARY Life Sciences returned -1.88%* for the 12 months ended November 30, 2006, compared with 9.09% for its benchmark, the S&P Composite 1500 Health Care Index. The broader market, represented by the S&P 500 Index, returned 14.23%. As outlined in the Market Perspective on page 2, U.S. stock index returns were mostly in the 10-20% range for the 12-month period. Health care lagged, however, dragged down by concerns about tightening profit margins and slowing increases in managed care premiums. Life Sciences underperformed its benchmark primarily because of its underweight position and poor stock selection in pharmaceuticals and its overweight position and adverse stock selection in health care providers. LARGE SHORTFALL IN PHARMACEUTICALS Pharmaceutical stocks represented our largest relative shortfall against the benchmark for two reasons. First, we maintained an underweight position in this industry at a time when it outperformed. Pharmaceutical stocks have not shown earnings acceleration for several years and, historically, our underweighting of the group, compared with the fund benchmark, has been beneficial. This year, however, investors sought such stocks for their defensive characteristics and high dividend yields. So, although we devoted, on average, over 25% of the fund's assets to pharmaceutical stocks during the reporting period, we did not own enough to keep pace with the benchmark. Our pharmaceutical position was also underweight for diversification reasons. Pharmaceutical stocks constitute nearly 50% of the benchmark, with Pfizer, Johnson & Johnson, and Merck alone accounting for 28% of the index. We typically do not invest so much of the fund in so few names. Second, stock selection also proved detrimental. We held several non-benchmark names -- including Teva Pharmaceuticals -- that declined. Teva, the world's biggest generic drug maker, saw its shares fall in May and June over concern about increased competition and reduced prices for generic drugs. Still, there were some bright spots in pharmaceuticals, including international drug companies Roche Holding (up 22%) and Novartis (up 13%), and TOP TEN HOLDINGS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- Thermo Fisher Scientific Inc.(1) 3.8% 2.8% - -------------------------------------------------------------------------------- Roche Holding AG ORD 3.6% 2.8% - -------------------------------------------------------------------------------- Johnson & Johnson 3.4% 3.9% - -------------------------------------------------------------------------------- Bard (C.R.), Inc. 3.3% 2.6% - -------------------------------------------------------------------------------- Wyeth 3.0% 3.9% - -------------------------------------------------------------------------------- Amgen Inc. 2.9% 2.7% - -------------------------------------------------------------------------------- Shire plc ADR 2.5% 2.6% - -------------------------------------------------------------------------------- Manor Care, Inc. 2.5% 3.0% - -------------------------------------------------------------------------------- Allergan, Inc. 2.3% -- - -------------------------------------------------------------------------------- Waters Corp. 2.3% -- - -------------------------------------------------------------------------------- (1) Thermo Fisher Scientific Inc. changed its name from Thermo Electron Corp. effective 11/10/06. *All fund returns referenced in this commentary are for Investor Class shares. (continued) Life Sciences - Portfolio Commentary diversified drug companies Wyeth (up 19%), and Johnson & Johnson (up 9%). HEALTH CARE PROVIDERS DETRACTED Health care providers & services -- on average our largest single position and most significant overweight during the reporting period -- detracted on both an absolute and a relative basis. Shifts in sentiment can sometimes lead to losses, regardless of underlying business fundamentals. Following outsized gains in 2005, this industry began to decline in 2006, and the market did not always recognize the kinds of companies we find attractive. Industry challenges also played a role. Chemed Corp. (down 26%), the nation's largest end-of-life care provider, was one of the portfolio's biggest detractors. This stock declined sharply after the company announced that its earnings might fall in the wake of potential Medicare cap billing limitations. TOP CONTRIBUTOR Our search for companies demonstrating improving earnings led us to Thermo Fisher Scientific Inc. (up 42%, our top-contributing stock), in the life sciences tools & services industry. The company produces a range of laboratory instruments and tools for education, scientific research, and health care. Our small position was significantly overweight compared with its benchmark weighting. OUR STARTING POINT FOR THE NEXT SIX MONTHS As fundamental, bottom-up managers, we evaluate each company individually on its own merits, and build the portfolio from the ground up, one stock at a time. In our search for companies demonstrating earnings acceleration, we will structure exposure to stocks and market segments as warranted based on the strength of individual companies. Thermo Fisher Scientific is a good example of our process at work. Each quarter of 2006, the company demonstrated momentum in earnings growth, generating profits that were reinvested back into the business. TOP FIVE INDUSTRIES AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- Health Care Equipment & Supplies 29.7% 16.2% - -------------------------------------------------------------------------------- Pharmaceuticals 22.8% 26.0% - -------------------------------------------------------------------------------- Health Care Providers & Services 21.7% 41.0% - -------------------------------------------------------------------------------- Life Sciences Tools & Services 10.6% 5.3% - -------------------------------------------------------------------------------- Biotechnology 7.7% 7.3% - -------------------------------------------------------------------------------- TYPES OF INVESTMENTS IN PORTFOLIO - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- Domestic Common Stocks 79.3% 77.6% - -------------------------------------------------------------------------------- Foreign Common Stocks(1) 16.8% 19.5% - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS 96.1% 97.1% - -------------------------------------------------------------------------------- Temporary Cash Investments 6.5% 1.1% - -------------------------------------------------------------------------------- Other Assets & Liabilities (2.6)% 1.8% - -------------------------------------------------------------------------------- (1) Includes depositary shares, dual listed securities and foreign ordinary shares. Technology - Performance TOTAL RETURNS AS OF NOVEMBER 30, 2006 ------------------------ AVERAGE ANNUAL RETURNS - -------------------------------------------------------------------------------- SINCE INCEPTION 1 YEAR 5 YEARS INCEPTION DATE - -------------------------------------------------------------------------------- INVESTOR CLASS 7.60% 0.19% -12.57% 6/30/00 - -------------------------------------------------------------------------------- S&P COMPOSITE 1500 TECHNOLOGY INDEX 7.65% 0.98% -10.43% -- - -------------------------------------------------------------------------------- S&P 500 INDEX(1) 14.23% 6.08% 1.08% -- - -------------------------------------------------------------------------------- Institutional Class 7.86% 0.38% -13.84% 7/14/00 - -------------------------------------------------------------------------------- Advisor Class 7.36% -0.08% -12.82% 6/30/00 - -------------------------------------------------------------------------------- (1) Data provided by Lipper Inc. - A Reuters Company. (c) 2006 Reuters. All rights reserved. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. The data contained herein has been obtained from company reports, financial reporting services, periodicals and other resources believed to be reliable. Although carefully verified, data on compilations is not guaranteed by Lipper and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Lipper. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The fund concentrates its investments in a narrow segment of the total market and is therefore subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. (continued) Technology - Performance GROWTH OF $10,000 OVER LIFE OF CLASS $10,000 investment made June 30, 2000
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ONE-YEAR RETURNS OVER LIFE OF CLASS Periods ended November 30 - -------------------------------------------------------------------------------- 2000* 2001 2002 2003 2004 2005 2006 - -------------------------------------------------------------------------------- Investor Class -36.20% -34.48% -31.10% 35.97% -7.05% 7.75% 7.60% - -------------------------------------------------------------------------------- S&P Composite 1500 Technology Index -33.66% -29.22% -27.70% 24.02% 1.48% 7.21% 7.65% - -------------------------------------------------------------------------------- S&P 500 Index -9.16% -12.22% -16.51% 15.09% 12.86% 8.44% 14.23% - -------------------------------------------------------------------------------- * From 6/30/00, the Investor Class's inception date. Not annualized. Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. The fund concentrates its investments in a narrow segment of the total market and is therefore subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. Unless otherwise indicated, performance reflects Investor Class shares; performance for other share classes will vary due to differences in fee structure. For information about other share classes available, please consult the prospectus. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Returns for the indices are provided for comparison. The fund'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. Technology - Portfolio Commentary PORTFOLIO MANAGER: TOM TELFORD PERFORMANCE SUMMARY American Century Technology returned 7.60%* during the 12 months ended November 30, 2006. By comparison, the fund's benchmark, the S&P Composite 1500 Technology Index, returned 7.65%. The performance of the fund and benchmark reflected a period in which growth-oriented stocks lagged the broader market (see the Market Perspective on page 2). Nevertheless, holdings in every information technology industry contributed to performance. Relative to the benchmark, the portfolio's return was helped by positioning in internet software & services, electronic equipment, and semiconductor firms. Our positioning among computers & peripherals, IT services, and software companies detracted from relative results. PICKING WINNERS IN INTERNET SOFTWARE & SERVICES Our stock selection was strongest in internet software & services shares, where the portfolio's holdings returned 42% for the 12 months, while this segment of the index was down 16%. Our top contributor was Akamai Technologies, a leading provider of internet content delivery services. We owned the stock at a time of increased revenue growth because of an explosion of online transactions and Web traffic. What we didn't own was just as important as what we did -- the fund had no exposure to Yahoo! and eBay, two of the largest stocks in this space, with returns of -33% and -28%, respectively. ELECTRONIC EQUIPMENT AND SEMICONDUCTORS HELPED Electronic equipment firms were the leading contributors to fund performance in both relative and absolute terms. We held overweight positions in this winning industry, and enjoyed positive stock selection. For the year, Technology's electronic equipment holdings returned 32%, versus 10% for this segment of the index. Some of our leading contributing firms in this space were Plexus, TTM Technologies, and Daktronics. We closed out these positions after sizable gains during the fiscal year. Semiconductor shares were home to the portfolio's biggest contributor to relative performance -- our underweight position in Intel, which accounts for more than 5% of the index. This positioning benefited fund shareholders when Intel performed poorly for much of the period amid intense competition with rival Advanced Micro Devices. Finally, wireless communication device maker Research in Motion -- our largest position at period-end -- was a leading contributor to relative and absolute returns. The firm, which makes the BlackBerry TOP TEN HOLDINGS AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- Research In Motion Ltd. 4.3% -- - -------------------------------------------------------------------------------- Oracle Corp. 3.7% -- - -------------------------------------------------------------------------------- Intel Corp. 3.6% -- - -------------------------------------------------------------------------------- Google Inc. Cl A 2.9% -- - -------------------------------------------------------------------------------- Vignette Corp. 2.9% -- - -------------------------------------------------------------------------------- Cisco Systems Inc. 2.9% -- - -------------------------------------------------------------------------------- Millicom International Cellular SA 2.8% -- - -------------------------------------------------------------------------------- Precision Castparts Corp. 2.3% -- - -------------------------------------------------------------------------------- Amphenol Corp. Cl A 2.2% 1.6% - -------------------------------------------------------------------------------- Infosys Technologies Ltd. ADR 2.0% -- - -------------------------------------------------------------------------------- *All fund returns referenced in this commentary are for Investor Class shares. (continued) Technology - Portfolio Commentary handheld device, saw its stock more than double during the fiscal year as it enjoyed solid revenue and subscriber growth, as well as strong sales of its new product, the Pearl. COMPUTERS & PERIPHERALS LED DETRACTORS We held underweight positions in computer makers compared with the benchmark, as many firms in this area were subject to intense price competition and declining margins. In some cases, this strategy worked; for example, we had no exposure to Dell, which declined 10%. But stocks in this portion of the index returned 15% overall, so holding an underweight position detracted from relative performance. Two of the portfolio's top-three relative detractors resided in this space -- Apple Computer and Hewlett-Packard. We had substantial positions in these two stocks throughout the period, but our underweight position relative to the benchmark limited relative results. IT SERVICES, SOFTWARE ALSO DETRACTED An underweight position and disappointing stock selection detracted from performance relative to our benchmark in IT services. In contrast, we enjoyed a positive effect from stock selection in the software sector; however, fund performance relative to the benchmark was limited by our underweight in this winning sector. OUR STARTING POINT FOR THE NEXT SIX MONTHS We target technology firms with accelerating earnings and revenue growth rates and positive share price momentum. As of November 30, 2006, we saw opportunity in companies in the internet software and services industry -- in which we held an overweight position relative to our benchmark -- which are using increasingly sophisticated products and approaches to profit from the internet. We think that Technology can be a good choice for investors interested in an aggressive, concentrated sector fund with the potential to outperform the broader market. But it's important to remind shareholders that a narrowly focused fund can be quite volatile to both the up and the down side, so it's best used as a small slice of a larger portfolio, rather than as a core holding. TOP FIVE INDUSTRIES AS OF NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- Software 14.8% 9.1% - -------------------------------------------------------------------------------- Communications Equipment 12.9% 7.8% - -------------------------------------------------------------------------------- Semiconductors & Semiconductor Equipment 12.7% 14.2% - -------------------------------------------------------------------------------- Electronic Equipment & Instruments 12.4% 16.6% - -------------------------------------------------------------------------------- Internet Software & Services 12.1% 10.1% - -------------------------------------------------------------------------------- TYPES OF INVESTMENTS IN PORTFOLIO - -------------------------------------------------------------------------------- % OF % OF NET ASSETS NET ASSETS AS OF AS OF 11/30/06 5/31/06 - -------------------------------------------------------------------------------- Domestic Common Stocks 73.1% 76.4% - -------------------------------------------------------------------------------- Foreign Common Stocks(1) 25.5% 22.3% - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS 98.6% 98.7% - -------------------------------------------------------------------------------- Temporary Cash Investments 0.5% 0.7% - -------------------------------------------------------------------------------- Other Assets & Liabilities 0.9% 0.6% - -------------------------------------------------------------------------------- (1) Includes depositary shares, dual listed securities and foreign ordinary shares. EXHIBIT C FINANCIAL HIGHLIGHTS LARGE COMPANY VALUE, VALUE AND SMALL CAP VALUE The Financial Highlights itemize what contributed to the changes in share price during the most recently ended fiscal year. They also show the changes in share price for this period in comparison to changes over the last five fiscal years. Except as noted below, the Financial Highlights that follow have been audited by Deloitte & Touche LLP, independent registered public accounting firm. Their Report of Independent Registered Public Accounting Firm and the financial statements are included in the funds' annual reports, which are available upon request. Large Company Value - Financial Highlights For a Share Outstanding Throughout the Years Ended March 31 (except as noted) - ----------------------------------------------------------------------------- A CLASS - ----------------------------------------------------------------------------- 2006(1) 2006 2005 2004 2003(2) - ----------------------------------------------------------------------------- PER-SHARE DATA - ----------------------------------------------------------------------------- Net Asset Value, Beginning of Period $6.72 $6.39 $5.90 $4.29 $4.46 - ----------------------------------------------------------------------------- Income From Investment Operations - ----------------------- Net Investment Income (Loss)(3) 0.06 0.10 0.10 0.07 0.01 - ----------------------- Net Realized and Unrealized Gain (Loss) 0.44 0.47 0.50 1.61 (0.17) - ----------------------------------------------------------------------------- Total From Investment Operations 0.50 0.57 0.60 1.68 (0.16) - ----------------------------------------------------------------------------- Distributions - ----------------------- From Net Investment Income (0.05) (0.09) (0.09) (0.07) (0.01) - ----------------------- From Net Realized Gains -- (0.15) (0.02) -- -- - ----------------------------------------------------------------------------- Total Distributions (0.05) (0.24) (0.11) (0.07) (0.01) - ----------------------------------------------------------------------------- Net Asset Value, End of Period $7.17 $6.72 $6.39 $5.90 $4.29 ============================================================================= TOTAL RETURN(4) 7.52% 9.16% 10.25% 39.22% (3.49)% - ----------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------- Ratio of Operating Expenses to Average Net Assets 1.08%(5) 1.09% 1.12% 1.15% 1.15%(5) - ----------------------- Ratio of Net Investment Income (Loss) to Average Net Assets 1.61%(5) 1.50% 1.65% 1.33% 1.79%(5) - ----------------------- Portfolio Turnover Rate 8% 16% 18% 14% 30%(6) - ----------------------- Net Assets, End of Period (in thousands) $222,161 $236,313 $245,416 $92,171 $3,733 - ----------------------------------------------------------------------------- (1) Six months ended September 30, 2006 (unaudited). (2) January 31, 2003 (commencement of sale) through March 31, 2003. (3) Computed using average shares outstanding throughout the period. (4) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (5) Annualized. (6) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2003. Large Company Value - Financial Highlights For a Share Outstanding Throughout the Years Ended March 31 (except as noted) - -------------------------------------------------------------------------------------- ADVISOR CLASS - -------------------------------------------------------------------------------------- 2006(1) 2006 2005 2004 2003 2002 - -------------------------------------------------------------------------------------- PER-SHARE DATA - -------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $6.72 $6.39 $5.89 $4.29 $5.53 $5.08 - -------------------------------------------------------------------------------------- Income From Investment Operations - ----------------------- Net Investment Income (Loss)(2) 0.05 0.10 0.10 0.07 0.07 0.06 - ----------------------- Net Realized and Unrealized Gain (Loss) 0.44 0.47 0.51 1.60 (1.25) 0.44 - -------------------------------------------------------------------------------------- Total From Investment Operations 0.49 0.57 0.61 1.67 (1.18) 0.50 - -------------------------------------------------------------------------------------- Distributions - ----------------------- From Net Investment Income (0.05) (0.09) (0.09) (0.07) (0.06) (0.05) - ----------------------- From Net Realized Gains -- (0.15) (0.02) -- -- -- - -------------------------------------------------------------------------------------- Total Distributions (0.05) (0.24) (0.11) (0.07) (0.06) (0.05) - -------------------------------------------------------------------------------------- Net Asset Value, End of Period $7.16 $6.72 $6.39 $5.89 $4.29 $5.53 ====================================================================================== TOTAL RETURN(3) 7.37% 9.17% 10.45% 38.99% (21.38)% 9.93% - -------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------- Ratio of Operating Expenses to Average Net Assets 1.08%(4) 1.09% 1.12% 1.15% 1.15% 1.15% - ----------------------- Ratio of Net Investment Income (Loss) to Average Net Assets 1.61%(4) 1.50% 1.65% 1.33% 1.50% 1.09% - ----------------------- Portfolio Turnover Rate 8% 16% 18% 14% 30% 34% - ----------------------- Net Assets, End of Period (in thousands) $228,945 $184,601 $104,612 $19,265 $1,090 $6 - -------------------------------------------------------------------------------------- (1) Six months ended September 30, 2006 (unaudited). (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (4) Annualized. Value - Financial Highlights For a Share Outstanding Throughout the Year Ended March 31 (except as noted) - ---------------------------------------------------------------------------- A CLASS - ---------------------------------------------------------------------------- 2006(1) 2006 2005 2004 2003(2) - ---------------------------------------------------------------------------- PER-SHARE DATA - ---------------------------------------------------------------------------- Net Asset Value, Beginning of Period $7.19 $7.31 $7.72 $5.60 $5.77 - ---------------------------------------------------------------------------- Income From Investment Operations - ----------------------- Net Investment Income (Loss)(3) 0.05 0.11 0.07 0.07 0.01 - ----------------------- Net Realized and Unrealized Gain (Loss) 0.40 0.57 0.64 2.19 (0.16) - ---------------------------------------------------------------------------- Total From Investment Operations 0.45 0.68 0.71 2.26 (0.15) - ---------------------------------------------------------------------------- Distributions - ----------------------- From Net Investment Income (0.04) (0.08) (0.07) (0.06) (0.02) - ----------------------- From Net Realized Gains -- (0.72) (1.05) (0.08) -- - ---------------------------------------------------------------------------- Total Distributions (0.04) (0.80) (1.12) (0.14) (0.02) - ---------------------------------------------------------------------------- Net Asset Value, End of Period $7.60 $7.19 $7.31 $7.72 $5.60 ============================================================================ TOTAL RETURN(4) 6.34% 9.75% 9.67% 40.55% (2.67)% - ---------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ---------------------------------------------------------------------------- Ratio of Operating Expenses to Average Net Assets 1.24%(5) 1.24% 1.24% 1.25% 1.25%(5) - ----------------------- Ratio of Net Investment Income (Loss) to Average Net Assets 1.27%(5) 1.46% 0.91% 1.01% 0.62%(5) - ----------------------- Portfolio Turnover Rate 65% 134% 130% 122% 102%(6) - ----------------------- Net Assets, End of Period (in thousands) $67,178 $65,780 $48,330 $15,029 $385 - ---------------------------------------------------------------------------- (1) Six months ended September 30, 2006 (unaudited). (2) January 31, 2003 (commencement of sale) through March 31, 2003. (3) Computed using average shares outstanding throughout the period. (4) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (5) Annualized. (6) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2003. Value - Financial Highlights For a Share Outstanding Throughout the Years Ended March 31 (except as noted) - ----------------------------------------------------------------------------------------- ADVISOR CLASS - ----------------------------------------------------------------------------------------- 2006(1) 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------- PER-SHARE DATA - ----------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $7.18 $7.31 $7.72 $5.60 $7.19 $6.27 - ----------------------------------------------------------------------------------------- Income From Investment Operations - ----------------------- Net Investment Income (Loss)(2) 0.05 0.10 0.07 0.07 0.06 0.06 - ----------------------- Net Realized and Unrealized Gain (Loss) 0.40 0.57 0.64 2.19 (1.49) 1.03 - ----------------------------------------------------------------------------------------- Total From Investment Operations 0.45 0.67 0.71 2.26 (1.43) 1.09 - ----------------------------------------------------------------------------------------- Distributions - ----------------------- From Net Investment Income (0.04) (0.08) (0.07) (0.06) (0.06) (0.06) - ----------------------- From Net Realized Gains -- (0.72) (1.05) (0.08) (0.10) (0.11) - ----------------------------------------------------------------------------------------- Total Distributions (0.04) (0.80) (1.12) (0.14) (0.16) (0.17) - ----------------------------------------------------------------------------------------- Net Asset Value, End of Period $7.59 $7.18 $7.31 $7.72 $5.60 $7.19 ========================================================================================= TOTAL RETURN(3) 6.35% 9.61% 9.67% 40.56% (20.07)% 17.51% - ----------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------------- Ratio of Operating Expenses to Average Net Assets 1.24%(4) 1.24% 1.24% 1.25% 1.25% 1.25% - ----------------------- Ratio of Net Investment Income (Loss) to Average Net Assets 1.27%(4) 1.46% 0.91% 1.01% 0.94% 0.86% - ----------------------- Portfolio Turnover Rate 65% 134% 130% 122% 102% 151% - ----------------------- Net Assets, End of Period (in thousands) $234,909 $214,835 $236,960 $403,212 $210,984 $208,311 - ----------------------------------------------------------------------------------------- (1) Six months ended September 30, 2006 (unaudited). (2) Computed using average shares outstanding throughout the period. (3) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. gain or loss of value between one class and another. (4) Annualized. Small Cap Value - Financial Highlights For a Share Outstanding Throughout the Years Ended March 31 (except as noted) - ------------------------------------------------------------------------------------------------------ C CLASS - ------------------------------------------------------------------------------------------------------ 2006(1) 2006 2005 2004 2003 2002(2) - ------------------------------------------------------------------------------------------------------ PER-SHARE DATA - ------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $10.12 $9.83 $9.57 $6.35 $8.59 $7.57 - ------------------------------------------------------------------------------------------------------ Income From Investment Operations - ----------------------------------- Net Investment Loss(3) (0.02) (0.04) (0.07) (0.03) (0.04) (0.05) - ----------------------------------- Net Realized and Unrealized Gain (Loss) (0.13) 1.67 1.28 3.25 (1.88) 1.23 - ------------------------------------------------------------------------------------------------------ Total From Investment Operations (0.15) 1.63 1.21 3.22 (1.92) 1.18 - ------------------------------------------------------------------------------------------------------ Distributions - ----------------------------------- From Net Investment Income -- -- -- -- -- --(4) - ----------------------------------- From Net Realized Gains -- (1.34) (0.95) -- (0.32) (0.16) - ------------------------------------------------------------------------------------------------------ Total Distributions -- (1.34) (0.95) -- (0.32) (0.16) - ------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $9.97 $10.12 $9.83 $9.57 $6.35 $8.59 ====================================================================================================== TOTAL RETURN(5) (1.48)% 17.48% 12.85% 50.71% (22.58)% 15.80% RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------ Ratio of Operating Expenses to Average Net Assets 2.25%(6) 2.25% 2.25% 2.26% 2.25% 2.25%(6) - ----------------------------------- Ratio of Net Investment Loss to Average Net Assets (0.42)%(6) (0.42)% (0.68)% (0.41)% (0.63)% (0.78)%(6) - ----------------------------------- Portfolio Turnover Rate 63% 111% 108% 110% 104% 73%(7) - ----------------------------------- Net Assets, End of Period (in thousands) $3,492 $3,678 $3,470 $3,711 $2,936 $3,997 - ------------------------------------------------------------------------------------------------------ (1) Six months ended September 30, 2006 (unaudited). (2) June 1, 2001 (commencement of sale) through March 31, 2002. (3) Computed using average shares outstanding throughout the period. (4) Per-share amount was less than $0.005. (5) Total return assumes reinvestment of net investment income and capital gains distributions, if any, and does not reflect applicable sales charges. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (6) Annualized. (7) Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2002. Small Cap Value - Financial Highlights For a Share Outstanding Throughout the Years Ended March 31 (except as noted) - ------------------------------------------------------------------------------------------------- ADVISOR CLASS - ------------------------------------------------------------------------------------------------- 2006(1) 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------- PER-SHARE DATA - ------------------------------------------------------------------------------------------------- Net Asset Value, Beginning of Period $10.45 $10.06 $9.71 $6.43 $8.62 $6.60 - ------------------------------------------------------------------------------------------------- Income From Investment Operations - ----------------------------------- Net Investment Income(2) 0.02 0.03 0.01 0.03 0.01 --(3) - ----------------------------------- Net Realized and Unrealized Gain (Loss) (0.14) 1.74 1.30 3.27 (1.87) 2.21 - ------------------------------------------------------------------------------------------------- Total From Investment Operations (0.12) 1.77 1.31 3.30 (1.86) 2.21 - ------------------------------------------------------------------------------------------------- Distributions - ----------------------------------- From Net Investment Income -- (0.04) (0.01) (0.02) (0.01) (0.01) - ----------------------------------- From Net Realized Gains -- (1.34) (0.95) -- (0.32) (0.18) - ------------------------------------------------------------------------------------------------- Total Distributions -- (1.38) (0.96) (0.02) (0.33) (0.19) - ------------------------------------------------------------------------------------------------- Net Asset Value, End of Period $10.33 $10.45 $10.06 $9.71 $6.43 $8.62 ================================================================================================= TOTAL RETURN(4) (1.15)% 18.51% 13.70% 51.38% (21.85)% 33.74% RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------- Ratio of Operating Expenses to Average Net Assets 1.50%(5) 1.50% 1.50% 1.51% 1.50% 1.50% - ----------------------------------- Ratio of Net Investment Income to Average Net Assets 0.33%(5) 0.33% 0.07% 0.34% 0.12% 0.02% - ----------------------------------- Portfolio Turnover Rate 63% 111% 108% 110% 104% 73% - ----------------------------------- Net Assets, End of Period (in thousands) $427,186 $455,001 $624,633 $432,261 $173,064 $182,986 - ------------------------------------------------------------------------------------------------- (1) Six months ended September 30, 2006 (unaudited). (2) Computed using average shares outstanding throughout the period. (3) Per-share amount was less than $0.005. (4) Total return assumes reinvestment of net investment income and capital gains distributions, if any. Total returns for periods less than one year are not annualized. The total return of the classes may not precisely reflect the class expense differences because of the impact of calculating the net asset values to two decimal places. If net asset values were calculated to three decimal places, the total return differences would more closely reflect the class expense differences. The calculation of net asset values to two decimal places is made in accordance with SEC guidelines and does not result in any gain or loss of value between one class and another. (5) Annualized. STATEMENT OF ADDITIONAL INFORMATION APRIL 3, 2007 RECLASSIFICATIONS OF SHARE CLASSES OF THE FOLLOWING FUNDS: A CLASS SHARES OF THE FOLLOWING FUNDS WILL BE RECLASSIFIED AS ADVISOR CLASS SHARES OF THE SAME FUNDS: AMERICAN CENTURY LARGE COMPANY VALUE FUND AMERICAN CENTURY VALUE FUND EACH, A SERIES OF AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. AMERICAN CENTURY SELECT FUND A SERIES OF AMERICAN CENTURY MUTUAL FUNDS, INC. AMERICAN CENTURY STRATEGIC ALLOCATION: CONSERVATIVE FUND AMERICAN CENTURY STRATEGIC ALLOCATION: MODERATE FUND AMERICAN CENTURY STRATEGIC ALLOCATION: AGGRESSIVE FUND EACH A SERIES OF AMERICAN CENTURY STRATEGIC ASSET ALLOCATIONS, INC. AMERICAN CENTURY GLOBAL GROWTH FUND AMERICAN CENTURY INTERNATIONAL GROWTH FUND EACH, A SERIES OF AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. C CLASS SHARES OF THE FOLLOWING FUNDS WILL BE RECLASSIFIED AS ADVISOR CLASS SHARES OF THE SAME FUNDS: AMERICAN CENTURY SMALL CAP VALUE FUND A SERIES OF AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. AMERICAN CENTURY GROWTH FUND AMERICAN CENTURY VISTA FUND EACH, A SERIES OF AMERICAN CENTURY MUTUAL FUNDS, INC. ADVISOR CLASS SHARES OF THE FOLLOWING FUNDS WILL BE RECLASSIFIED AS INVESTOR CLASS SHARES OF THE SAME FUNDS: AMERICAN CENTURY BALANCED FUND A SERIES OF AMERICAN CENTURY MUTUAL FUNDS, INC., AMERICAN CENTURY LIFE SCIENCES FUND AMERICAN CENTURY TECHNOLOGY FUND EACH, A SERIES OF AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. C CLASS SHARES OF THE FOLLOWING FUND WILL BE RECLASSIFIED AS INVESTOR CLASS SHARES OF THE SAME FUND: AMERICAN CENTURY LIFE SCIENCES FUND A SERIES OF AMERICAN CENTURY WORLD MUTUAL FUNDS, INC. Each fund has the following address: 4500 Main Street Kansas City, Missouri 64111 Telephone No: 1-877-345-8836 This Statement of Additional Information dated April 3, 2007, is not a prospectus. A Proxy Statement and Prospectus dated April 3, 2007, related to the above-referenced matters may be obtained from American Century Funds, on behalf of the funds listed above, by writing or calling American Century Funds at the address and telephone number shown above. This Statement of Additional Information should be read in conjunction with such Proxy Statement and Prospectus. TABLE OF CONTENTS 1. The statement of additional information for Large Company Value, Value, and Small Cap Value, dated August 1, 2006. 2. The statement of additional information for Select, Balanced, Growth and Vista, dated March 1, 2007. 3. The statement of additional information for Strategic Allocation: Conservative, Strategic Allocation: Moderate and Strategic Allocation: Aggressive, dated April 1, 2007. 4. The statement of additional information for Global Growth, International Growth, Life Sciences and Technology, dated April 1, 2007. 5. Audited Financial Statements of Large Company Value and Value, each a series of American Century Capital Portfolios, Inc., dated March 31, 2006. 6. Audited Financial Statements of Small Cap Value, a series of American Century Capital Portfolios, Inc., dated March 31, 2006. 7. Audited Financial Statements of Select, a series of American Century Mutual Funds, Inc., dated October 31, 2006. 8. Audited Financial Statements of Balanced, a series of American Century Mutual Funds, Inc., dated October 31, 2006. 9. Audited Financial Statements of Growth and Vista, each a series of American Century Mutual Funds, Inc., dated October 31, 2006. 10. Audited Financial Statements of Strategic Allocation: Conservative, Strategic Allocation: Moderate and Strategic Allocation: Aggressive, each a series of American Century Strategic Asset Allocations, Inc., dated November 30, 2006. 11. Audited Financial Statements of Global Growth and International Growth, each a series of American Century World Mutual Funds, Inc., dated November 30, 2006. 12. Audited Financial Statements of Life Sciences and Technology, each a series of American Century World Mutual Funds, Inc., dated November 30, 2006. 13. Unaudited Financial Statements of Large Company Value and Value, each a series of American Century Capital Portfolios, Inc., dated September 30, 2006. 14. Unaudited Financial Statements of Small Cap Value, a series of American Century Capital Portfolios, Inc., dated September 30, 2006. INFORMATION INCORPORATED BY REFERENCE The statement of additional information for Large Company Value, Value and Small Cap Value, each a series of American Century Capital Portfolios, Inc., dated August 1, 2006, is incorporated by reference to American Century Capital Portfolios, Inc.'s Post-Effective Amendment No. 38 to its Registration Statement on Form N-1A (File No. 811-07820) which was filed with the Securities and Exchange Commission on or about July 28, 2006. The statement of additional information for Select, Balanced, Growth and Vista, each a series of American Century Mutual Funds, Inc., dated March 1, 2007 is incorporated by reference to American Century Mutual Funds, Inc.'s Post-Effective Amendment No. 120 to its Registration Statement on Form N-1A (File No. 811-00816) which was filed with the Securities and Exchange Commission on or about February 28, 2007. The statement of additional information for Strategic Allocation: Conservative, Strategic Allocation: Moderate and Strategic Allocation: Aggressive, each a series of American Century Strategic Asset Allocations, Inc., dated April 1, 2007 is incorporated by reference to American Century Strategic Asset Allocations, Inc.'s Post-Effective Amendment No. 24 to its Registration Statement on Form N-1A (File No. 811-08532) which was filed with the Securities and Exchange Commission on or about March 29, 2007. The statement of additional information for Global Growth, International Growth, Life Sciences and Technology, each a series of American Century World Mutual Funds, Inc., dated April 1, 2007 is incorporated by reference to American Century World Mutual Funds, Inc.'s Post-Effective Amendment No. 46 to its Registration Statement on Form N-1A (File No. 811-06247) which was filed with the Securities and Exchange Commission on or about March 29, 2007. Audited Financial Statements of Large Company Value and Value each a series of American Century Capital Portfolios, Inc., dated March 31, 2006 are incorporated by reference to the funds' Annual Report to shareholders, which was filed with the Securities and Exchange Commission pursuant to Section 30(b) of the Investment Company Act of 1940, as amended, on or about June 1, 2006. Audited Financial Statements of Small Cap Value, a series of American Century Capital Portfolios, Inc., dated March 31, 2006 are incorporated by reference to the fund's Annual Report to shareholders, which was filed with the Securities and Exchange Commission pursuant to Section 30(b) of the Investment Company Act of 1940, as amended, on or about June 1, 2006. Audited Financial Statements of Select, a series of American Century Mutual Funds, Inc., dated October 31, 2006 are incorporated by reference to the fund's Annual Report to shareholders, which was filed with the Securities and Exchange Commission pursuant to Section 30(b) of the Investment Company Act of 1940, as amended, on or about December 28, 2006. Audited Financial Statements of Balanced, a series of American Century Mutual Funds, Inc., dated October 31, 2006 are incorporated by reference to the fund's Annual Report to shareholders, which was filed with the Securities and Exchange Commission pursuant to Section 30(b) of the Investment Company Act of 1940, as amended, on or about December 28, 2006. Audited Financial Statements of Growth and Vista, each a series of American Century Mutual Funds, Inc., dated October 31, 2006 are incorporated by reference to the funds' Annual Report to shareholders, which was filed with the Securities and Exchange Commission pursuant to Section 30(b) of the Investment Company Act of 1940, as amended, on or about December 28, 2006. Audited Financial Statements of Strategic Allocation: Conservative, Strategic Allocation: Moderate and Strategic Allocation: Aggressive, each a series of American Century Strategic Asset Allocations, Inc., dated November 30, 2006 are incorporated by reference to the funds' Annual Report to shareholders, which was filed with the Securities and Exchange Commission pursuant to Section 30(b) of the Investment Company Act of 1940, as amended, on or about January 30, 2007. Audited Financial Statements of Global Growth and International Growth, each a series of American Century World Mutual Funds, Inc., dated November 30, 2006 are incorporated by reference to the funds' Annual Report to shareholders, which was filed with the Securities and Exchange Commission pursuant to Section 30(b) of the Investment Company Act of 1940, as amended, on or about January 30, 2007. Audited Financial Statements of Life Sciences and Technology, each a series of American Century World Mutual Funds, Inc., dated November 30, 2006 are incorporated by reference to the funds' Annual Report to shareholders, which was filed with the Securities and Exchange Commission pursuant to Section 30(b) of the Investment Company Act of 1940, as amended, on or about January 30, 2007. Unaudited Financial Statements of Large Company Value and Value, each a series of American Century Capital Portfolios, Inc., dated September 30, 2006 are incorporated by reference to the funds' Semiannual Report to shareholders, which was filed with the Securities and Exchange Commission pursuant to Section 30(b) of the Investment Company Act of 1940, as amended, on or about December 5, 2006. Unaudited Financial Statements of Small Cap Value, a series of American Century Capital Portfolios, Inc., dated September 30, 2006 are incorporated by reference to the fund's Semiannual Report to shareholders, which was filed with the Securities and Exchange Commission pursuant to Section 30(b) of the Investment Company Act of 1940, as amended, on or about December 5, 2006. References to the above-listed documents include any supplements to such documents in effect as of the date of the related Proxy Statement/Prospectus. AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. PART C OTHER INFORMATION Item 15. Indemnification The Registrant is a Maryland Corporation. Section 2-418 of the Maryland General Corporation Law allows a Maryland corporation to indemnify its officers, directors, employees and agents to the extent provided in such statute. Article VIII of the Registrant's Articles of Incorporation, requires the indemnification of the Registrant's directors and officers to the extent permitted by Section 2-418 of the Maryland General Corporation Law, the Investment Company Act of 1940 and all other applicable laws. The Registrant has purchased an insurance policy insuring its officers and directors against certain liabilities which such officers and directors may incur while acting in such capacities and providing reimbursement to the Registrant for sums which it may be permitted or required to pay to its officers and directors by way of indemnification against such liabilities, subject in either case to clauses respecting deductibility and participation. Item 16. Exhibits (1) (a) Articles of Incorporation of Twentieth Century Capital Portfolios, Inc., dated June 11, 1993 (filed electronically as Exhibit 1a to Post-Effective Amendment No. 5 to the Registration Statement of the Registrant on July 31, 1996, File No. 33-64872, and incorporated herein by reference). (b) Articles Supplementary of Twentieth Century Capital Portfolios, Inc., dated April 24, 1995 (filed electronically as Exhibit a2 to Post-Effective Amendment No. 24 to the Registration Statement of the Registrant on October 10, 2002, File No. 33-64872, and incorporated herein by reference). (c) Articles Supplementary of Twentieth Century Capital Portfolios, Inc., dated March 11, 1996 (filed electronically as Exhibit 1b to Post-Effective Amendment No. 5 to the Registration Statement of the Registrant on July 31, 1996, File No. 33-64872, and incorporated herein by reference). (d) Articles Supplementary of Twentieth Century Capital Portfolios, Inc., dated September 9, 1996 (filed electronically as Exhibit a3 to Post-Effective Amendment No. 15 to the Registration Statement of the Registrant on May 14, 1999, File No. 33-64872, and incorporated herein by reference). (e) Articles of Amendment of Twentieth Century Capital Portfolios, Inc., dated December 2, 1996 (filed electronically as Exhibit b1c to Post-Effective Amendment No. 7 to the Registration Statement of the Registrant on March 3, 1997, File No. 33-64872, and incorporated herein by reference). (f) Articles Supplementary of American Century Capital Portfolios, Inc., dated December 2, 1996 (filed electronically as Exhibit b1d to Post-Effective Amendment No. 7 to the Registration Statement of the Registrant on March 3, 1997, File No. 33-64872, and incorporated herein by reference). (g) Articles Supplementary of American Century Capital Portfolios, Inc., dated April 30, 1997 (filed electronically as Exhibit b1e to Post-Effective Amendment No. 8 to the Registration Statement of the Registrant on May 21, 1997, File No. 33-64872, and incorporated herein by reference). (h) Certificate of Correction to Articles Supplementary of American Century Capital Portfolios, Inc., dated May 15, 1997 (filed electronically as Exhibit b1f to Post-Effective Amendment No. 8 to the Registration Statement of the Registrant on May 21, 1997, File No. 33-64872, and incorporated herein by reference). (i) Articles of Merger merging RREEF Securities Fund, Inc. with and into American Century Capital Portfolios, Inc., dated June 13, 1997 (filed electronically as Exhibit a8 to Post-Effective Amendment No. 15 to the Registration Statement of the Registrant on May 14, 1999, File No. 33-64872, and incorporated herein by reference). (j) Articles Supplementary of American Century Capital Portfolios, Inc., dated December 18, 1997 (filed electronically as Exhibit b1g to Post-Effective Amendment No. 9 to the Registration Statement of the Registrant on February 17, 1998, File No. 33-64872, and incorporated herein by reference). (k) Articles Supplementary of American Century Capital Portfolios, Inc., dated June 1, 1998 (filed electronically as Exhibit b1h to Post-Effective Amendment No. 11 to the Registration Statement of the Registrant on June 26, 1998, File No. 33-64872, and incorporated herein by reference). (l) Articles Supplementary of American Century Capital Portfolios, Inc., dated January 29, 1999 (filed electronically as Exhibit b1i to Post-Effective Amendment No. 14 to the Registration Statement of the Registrant on December 29, 1998, File No. 33-64872, and incorporated herein by reference). (m) Articles Supplementary of American Century Capital Portfolios, Inc., dated February 16, 1999 (filed electronically as Exhibit a12 to Post-Effective Amendment No. 15 to the Registration Statement of the Registrant on May 14, 1999, File No. 33-64872, and incorporated herein by reference). (n) Certificate of Correction to Articles Supplementary of American Century Capital Portfolios, Inc., dated May 12, 1999 (filed electronically as Exhibit a15 to Post-Effective Amendment No. 24 to the Registration Statement of the Registrant on October 10, 2002, File No. 33-64872, and incorporated herein by reference). (o) Articles Supplementary of American Century Capital Portfolios, Inc., dated June 2, 1999 (filed electronically as Exhibit a13 to Post-Effective Amendment No. 16 to the Registration Statement of the Registrant on July 29, 1999, File No. 33-64872, and incorporated herein by reference). (p) Articles Supplementary of American Century Capital Portfolios, Inc., dated June 8, 2000 (filed electronically as Exhibit a14 to Post-Effective Amendment No. 17 to the Registration Statement of the Registrant on July 28, 2000, File No. 33-64872, and incorporated herein by reference). (q) Articles Supplementary of American Century Capital Portfolios, Inc., dated March 5, 2001 (filed electronically as Exhibit a15 to Post-Effective Amendment No. 20 to the Registration Statement of the Registrant on April 20, 2001, File No. 33-64872, and incorporated herein by reference). (r) Articles Supplementary of American Century Capital Portfolios, Inc., dated April 4, 2001 (filed electronically as Exhibit a16 to Post-Effective Amendment No. 20 to the Registration Statement of the Registrant on April 20, 2001, File No. 33-64872, and incorporated herein by reference). (s) Articles Supplementary of American Century Capital Portfolios, Inc., dated May 21, 2001 (filed electronically as Exhibit a17 to Post-Effective Amendment No. 21 to the Registration Statement of the Registrant on July 30, 2001, File No. 33-64872, and incorporated herein by reference). (t) Articles Supplementary of American Century Capital Portfolios, Inc., dated August 23, 2001 (filed electronically as Exhibit a18 to Post-Effective Amendment No. 22 to the Registration Statement of the Registrant on July 30, 2002, File No. 33-64872, and incorporated herein by reference). (u) Articles Supplementary of American Century Capital Portfolios, Inc., dated March 6, 2002 (filed electronically as Exhibit a19 to Post-Effective Amendment No. 22 to the Registration Statement of the Registrant on July 30, 2002, File No. 33-64872, and incorporated herein by reference). (v) Articles Supplementary of American Century Capital Portfolios, Inc., dated April 4, 2002 (filed electronically as Exhibit a20 to Post-Effective Amendment No. 22 to the Registration Statement of the Registrant on July 30, 2002, File No. 33-64872, and incorporated herein by reference). (w) Articles Supplementary of American Century Capital Portfolios, Inc., dated June 14, 2002 (filed electronically as Exhibit a21 to Post-Effective Amendment No. 22 to the Registration Statement of the Registrant on July 30, 2002, File No. 33-64872, and incorporated herein by reference). (x) Certificate of Correction to Articles Supplementary of American Century Capital Portfolios, Inc., dated June 17, 2002 (filed electronically as Exhibit a22 to Post-Effective Amendment No. 22 to the Registration Statement of the Registrant on July 30, 2002, File No. 33-64872, and incorporated herein by reference). (y) Articles Supplementary of American Century Capital Portfolios, Inc., dated July 12, 2002 (filed electronically as Exhibit a23 to Post-Effective Amendment No. 22 to the Registration Statement of the Registrant on July 30, 2002, File No. 33-64872, and incorporated herein by reference). (z) Articles Supplementary of American Century Capital Portfolios, Inc., dated August 6, 2003 (filed electronically as Exhibit a26 to Post-Effective Amendment No. 28 to the Registration Statement of the Registrant on August 28, 2003, File No. 33-64872, and incorporated herein by reference). (aa) Articles Supplementary of American Century Capital Portfolios, Inc., dated November 5, 2003 (filed electronically as Exhibit a27 to Post-Effective Amendment No. 30 to the Registration Statement of the Registrant on March 29, 2004, File No. 33-64872, and incorporated herein by reference). (bb) Articles Supplementary of American Century Capital Portfolios, Inc., dated January 12, 2004 (filed electronically as Exhibit a28 to Post-Effective Amendment No. 30 to the Registration Statement of the Registrant on March 29, 2004, File No. 33-64872, and incorporated herein by reference). (cc) Articles Supplementary of American Century Capital Portfolios, Inc., dated April 1, 2004 (filed electronically as Exhibit a29 to Post-Effective Amendment No. 31 to the Registration Statement of the Registrant on May 26, 2004, File No. 33-64872, and incorporated herein by reference). (dd) Articles Supplementary of American Century Capital Portfolios, Inc., dated June 7, 2004 (filed electronically as Exhibit a30 to Post-Effective Amendment No. 32 to the Registration Statement of the Registrant on July 29, 2004, File No. 33-64872, and incorporated herein by reference). (ee) Articles Supplementary of American Century Capital Portfolios, Inc., dated June 21, 2004 (filed electronically as Exhibit a31 to Post-Effective Amendment No. 32 to the Registration Statement of the Registrant on July 29, 2004, File No. 33-64872, and incorporated herein by reference). (ff) Articles Supplementary of American Century Capital Portfolios, Inc., dated June 22, 2005 (filed electronically as Exhibit a32 to Post-Effective Amendment No. 34 to the Registration Statement of the Registrant on July 28, 2005, File No. 33-64872, and incorporated herein by reference). (gg) Articles Supplementary of American Century Capital Portfolios, Inc., dated December 13, 2005 (filed electronically as Exhibit 1(gg) to the Registration Statement on Form N-14 of the Registrant on December 22, 2005, File No. 33-64872, and incorporated herein by reference). (hh) Articles Supplementary of American Century Capital Portfolios, Inc., dated March 15, 2006 (filed electronically as Exhibit a34 to Post-Effective Amendment No. 37 to the Registration Statement of the Registrant on April 28, 2006, File No. 33-64872, and incorporated herein by reference). (2) Amended and Restated By-Laws, dated September 21, 2004 (filed electronically as Exhibit b to Post-Effective Amendment No. 33 to the Registration Statement of the Registrant on May 16, 2005, File No. 33-64872, and incorporated herein by reference). (3) Not applicable. (4) Not applicable. (5) Registrant hereby incorporates by reference, as though set forth fully herein, Article Fifth, Article Seventh, Article Eighth, and Article Ninth of Registrant's Articles of Incorporation, appearing as Exhibit (1)(a) herein and Article Fifth of Registrant's Articles of Amendment, appearing as Exhibit (1)(e) herein and Sections 3, 4, 5, 6, 7, 8, 9, 10, 11, 22, 24, 25, 30, 31, 33, 39, 45 and 46 of Registrant's Amended and Restated By-Laws, incorporated herein by reference as Exhibit 2 hereto. (6) (a) Management Agreement with American Century Investment Management, Inc., dated August 1, 2006 (filed electroncially as Exhibit 6(a) to the Registration Statement on Form N-14 of the Registrant on February 27, 2007, File No. 333-140909, and incorporated herein by reference). (b) Management Agreement with American Century Investment Management, Inc., dated April 28, 2006 (filed electroncially as Exhibit 6(b) to the Registration Statement on Form N-14 of the Registrant on February 27, 2007, File No. 333-140909, and incorporated herein by reference). (c) Subadvisory Agreement between Barclays Global Fund Advisers and American Century Investment Management, Inc., dated January 29, 1999 (filed electronically as Exhibit b5d to Post-Effective Amendment No. 14 to the Registration Statement of the Registrant, File No. 33-64872, filed on December 29, 1998, and incorporated herein by reference). (d) Subadvisory Agreement by and between American Century Capital Portfolios, Inc., American Century Investment Management, Inc. and J.P. Morgan Investment Management, Inc., dated January 1, 2000 (filed as Exhibit d2 to Post-Effective Amendment No. 17 to the Registration Statement of the Registrant, File No. 33-64872, filed on July 28, 2000, and incorporated herein by reference). (7) (a) Amended and Restated Distribution Agreement with American Century Investment Services, Inc., dated November 29, 2006 (filed electronically as Exhibit e1 to Post-Effective Amendment No. 45 to the Registration Statement of American Century Quantitative Equity Funds, Inc. on November 29, 2006, File No. 33-19589, and incorporated herein by reference). (b) Form of Dealer/Agency Agreement (filed electronically as Exhibit e2 to Pre-Effective Amendment No. 1 to the Registration Statement of American Century Growth Funds, Inc. on May 30, 2006, File No. 333-132114, and incorporated herein by reference). (8) Not applicable. (9) (a) Master Agreement with Commerce Bank, N. A., dated January 22, 1997 (filed electronically as Exhibit b8e to Post-Effective Amendment No. 76 to the Registration Statement of American Century Mutual Funds, Inc. on February 28, 1997, File No. 2-14213, and incorporated herein by reference). (b) Global Custody Agreement with The Chase Manhattan Bank, dated August 9, 1996 (filed electronically as Exhibit b8 to Post-Effective Amendment No. 31 to the Registration Statement of American Century Government Income Trust on February 7, 1997, File No. 2-99222, and incorporated herein by reference). (c) Amendment to the Global Custody Agreement with The Chase Manhattan Bank, dated December 9, 2000 (filed electronically as Exhibit g2 to Pre-Effective Amendment No. 2 to the Registration Statement of American Century Variable Portfolios II, Inc. on January 9, 2001, File No. 333-46922, and incorporated herein by reference). (d) Amendment No. 2 to the Global Custody Agreement between American Century Investments and the JPMorgan Chase Bank, dated as of May 1, 2004 (filed electronically as Exhibit g4 to Post-Effective Amendment No. 35 to the Registration Statement of American Century Quantitative Equity Funds, Inc. on April 29, 2004, File No. 33-19589, and incorporated herein by reference). (e) Chase Manhattan Bank Custody Fee Schedule, dated October 19, 2000 (filed electronically as Exhibit g5 to Post-Effective Amendment No. 35 to the Registration Statement of American Century Quantitative Equity Funds, Inc. on April 29, 2004, File No. 33-19589, and incorporated herein by reference). (f) Amendment No. 3 to the Global Custody Agreement between American Century Investments and the JPMorgan Chase Bank, dated as of May 31, 2006 (filed electronically as Exhibit g6 to Pre-Effective Amendment No. 1 to the Registration Statement of American Century Growth Funds, Inc. on May 30, 2006, File No. 333-132114, and incorporated herein by reference). (g) Registered Investment Company Custody Agreement with Goldman, Sachs & Co., dated February 6, 2006 (filed electronically as Exhibit g6 to Post-Effective Amendment No. 37 to the Registration Statement of the Registrant on April 28, 2006, File No. 33-64872, and incorporated herein by reference). (h) Amendment to Futures and Options Account Agreement and Registered Investment Company Custody Agreement with Goldman, Sachs & Co., effective May 12, 2006 (filed electronically as Exhibit g7 to Post-Effective Amendment No. 37 to the Registration Statement of the Registrant on April 28, 2006, File No. 33-64872, and incorporated herein by reference). (10) (a) Master Distribution and Shareholder Services Plan (Advisor Class), dated September 3, 1996 (filed electronically as Exhibit b15a to Post-Effective Amendment No. 9 to the Registration Statement of the Registrant on February 17, 1998, File No. 33-64872, and incorporated herein by reference). (b) Amendment No. 1 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated June 13, 1997 (filed electronically as Exhibit b15b to Post-Effective Amendment No. 77 to the Registration Statement of American Century Mutual Funds, Inc. on July 17, 1997, File No. 2-14213, and incorporated herein by reference). (c) Amendment No. 2 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated September 30, 1997 (filed electronically as Exhibit b15c to Post-Effective Amendment No. 78 to the Registration Statement of American Century Mutual Funds, Inc. on February 26, 1998, File No. 2-14213, and incorporated herein by reference). (d) Amendment No. 3 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated June 30, 1998 (filed electronically as Exhibit b15e to Post-Effective Amendment No. 11 to the Registration Statement of the Registrant on June 26, 1998, File No. 33-64872, and incorporated herein by reference). (e) Amendment No. 4 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated November 13, 1998 (filed electronically as Exhibit b15e to Post-Effective Amendment No. 12 to the Registration Statement of American Century World Mutual Funds, Inc. on November 13, 1998, File No. 33-39242, and incorporated herein by reference). (f) Amendment No. 5 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated February 16, 1999 (filed electronically as Exhibit m6 to Post-Effective Amendment No. 83 to the Registration Statement of American Century Mutual Funds, Inc. on February 26, 1999, File No. 2-14213, and incorporated herein by reference). (g) Amendment No. 6 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated July 30, 1999 (filed electronically as Exhibit m7 to Post-Effective Amendment No. 16 to the Registration Statement of the Registrant on July 29, 1999, File No. 33-64872, and incorporated herein by reference). (h) Amendment No. 7 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated November 19, 1999 (filed electronically as Exhibit m8 to Post-Effective Amendment No. 87 to the Registration Statement of American Century Mutual Funds, Inc. on November 29, 1999, File No. 2-14213, and incorporated herein by reference). (i) Amendment No. 8 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated June 1, 2000 (filed electronically as Exhibit m9 to Post-Effective Amendment No. 19 to the Registration Statement of American Century World Mutual Funds, Inc. on May 24, 2000, File No. 33-39242, and incorporated herein by reference). (j) Amendment No. 9 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated April 30, 2001 (filed electronically as Exhibit m10 to Post-Effective Amendment No. 24 to the Registration Statement of American Century World Mutual Funds, Inc. on April 19, 2001, File No. 33-39242, and incorporated herein by reference). (k) Amendment No. 10 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated December 3, 2001 (filed electronically as Exhibit m11 to Post-Effective Amendment No. 94 to the Registration Statement of the American Century Mutual Funds, Inc. on December 13, 2001, File No. 2-14213, and incorporated herein by reference). (l) Amendment No. 11 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated September 3, 2002 (filed electronically as Exhibit m12 to Post-Effective Amendment No. 26 to the Registration Statement of American Century World Mutual Funds, Inc. on October 1, 2002, File No. 33-39242, and incorporated herein by reference). (m) Amendment No. 12 to the Master Distribution and Shareholder Services Plan (Advisor Class), dated August 1, 2004 (filed electronically as Exhibit m13 to Post-Effective Amendment No. 32 to the Registration Statement of the Registrant on July 29, 2004, File No. 33-64872, and incorporated herein by reference). (n) Master Distribution and Individual Shareholder Services Plan (C Class), dated March 1, 2001 (filed electronically as Exhibit m11 to Post-Effective Amendment No. 24 to the Registration Statement of American Century World Mutual Funds, Inc. on April 19, 2001, File No. 33-39242, and incorporated herein by reference). (o) Amendment No. 1 to the Master Distribution and Individual Shareholder Services Plan (C Class), dated April 30, 2001 (filed electronically as Exhibit m12 to Post-Effective Amendment No. 24 to the Registration Statement of American Century World Mutual Funds, Inc. on April 19, 2001, File No. 33-39242, and incorporated herein by reference). (p) Amendment No. 2 to the Master Distribution and Individual Shareholder Services Plan (C Class), dated September 3, 2002 (filed electronically as Exhibit m15 to Post-Effective Amendment No. 27 to the Registration Statement of American Century World Mutual Funds, Inc. on October 10, 2002, File No. 33-39242, and incorporated herein by reference). (q) Amendment No. 3 to the Master Distribution and Individual Shareholder Services Plan (C Class), dated February 27, 2004 (filed electronically as Exhibit m16 to Post-Effective Amendment No. 104 to the Registration Statement of American Century Mutual Funds, Inc. on February 26, 2004, File No. 2-14213, and incorporated herein by reference). (r) Amendment No. 4 to the Master Distribution and Individual Shareholder Services Plan (C Class), dated September 30, 2004 (filed electronically as Exhibit m18 to Post-Effective Amendment No. 20 to the Registration Statement of American Century Strategic Asset Allocations, Inc., on September 29, 2004, File No. 33-79482, and incorporated herein by reference). (s) Amendment No. 5 to the Master Distribution and Individual Shareholder Services Plan (C Class), dated November 17, 2004 (filed electronically as Exhibit m19 to Post-Effective Amendment No. 106 to the Registration Statement of American Century Mutual Funds, Inc. on November 29, 2004, File No. 2-14213, and incorporated herein by reference). (t) Amendment No. 6 to the Master Distribution and Individual Shareholder Services Plan (C Class), dated March 30, 2006 (filed electronically as Exhibit m20 to Post-Effective Amendment No. 23 to the Registration Statement of American Century Strategic Asset Allocations, Inc. on March 30, 2006, File No. 33-79482, and incorporated herein by reference). (u) Master Distribution and Individual Shareholder Services Plan (A Class), dated September 3, 2002 (filed electronically as Exhibit m6 to Post-Effective Amendment No. 34 to the Registration Statement of American Century California Tax-Free and Municipal Funds on October 1, 2002, File No. 2-82734, and incorporated herein by reference). (v) Amendment No. 1 to the Master Distribution and Individual Shareholder Services Plan (A Class) dated February 27, 2004 (filed electronically as Exhibit m18 to Post-Effective Amendment No. 104 to the Registration Statement of American Century Mutual Funds, Inc. on February 26, 2004, File No. 2-14213, and incorporated herein by reference). (w) Amendment No. 2 to the Master Distribution and Individual Shareholder Services Plan (A Class), dated September 30, 2004 (filed electronically as Exhibit m22 to Post-Effective Amendment No. 106 to the Registration Statement of American Century Mutual Funds, Inc. on November 29, 2004, File No. 2-14213, and incorporated herein by reference). (x) Amendment No. 3 to the Master Distribution and Individual Shareholder Services Plan (A Class), dated November 17, 2004 (filed electronically as Exhibit m23 to Post-Effective Amendment No. 106 to the Registration Statement of American Century Mutual Funds, Inc. on November 29, 2004, File No. 2-14213, and incorporated herein by reference). (y) Amendment No. 4 to the Master Distribution and Individual Shareholder Services Plan (A Class), dated May 1, 2005 (filed electronically as Exhibit m13 to Post-Effective Amendment No. 44 to the Registration Statement of American Century Municipal Trust on May 13, 2005, File No. 2-91229, and incorporated herein by reference). (z) Amendment No. 5 to the Master Distribution and Individual Shareholder Services Plan (A Class), dated September 29, 2005 (filed electronically as Exhibit m25 to Post-Effective Amendment No. 38 to the Registration Statement of American Century World Mutual Funds, Inc. on November 30, 2005, File No. 33-39242, and incorporated herein by reference). (aa) Amendment No. 6 to the Master Distribution and Individual Shareholder Services Plan (A Class), dated March 30, 2006 (filed electronically as Exhibit m27 to Post-Effective Amendment No. 23 to the Registration Statement of American Century Strategic Asset Allocations, Inc. on March 30, 2006, File No. 33-79482, and incorporated herein by reference). (bb) Amendment No. 7 to the Master Distribution and Individual Shareholder Services Plan (A Class), dated November 29, 2006 (filed electronically as Exhibit m34 to Post-Effective Amendment No. 46 to the Registration Statement of American Century Quantitative Equity Funds, Inc. on November 29, 2006, File No. 33-19589, and incorporated herein by reference). (cc) Master Distribution and Individual Shareholder Services Plan (B Class), dated September 3, 2002 (filed electronically as Exhibit m7 to Post-Effective Amendment No. 34 to the Registration Statement of American Century California Tax-Free and Municipal Funds on October 1, 2002, File No. 2-82734, and incorporated herein by reference). (dd) Amendment No. 1 to the Master Distribution and Shareholder Services Plan (B Class), dated February 27, 2004 (filed electronically as Exhibit m20 to Post-Effective Amendment No. 104 to the Registration Statement of American Century Mutual Funds, Inc. on February 26, 2004, File No. 2-14213, and incorporated herein by reference). (ee) Amendment No. 2 to the Master Distribution and Individual Shareholder Services Plan (B Class), dated September 30, 2004 (filed electronically as Exhibit m26 to Post-Effective Amendment No. 106 to the Registration Statement of American Century Mutual Funds, Inc. on November 29, 2004, File No. 2-14213, and incorporated herein by reference). (ff) Amendment No. 3 to the Master Distribution and Individual Shareholder Services Plan (B Class), dated November 17, 2004 (filed electronically as Exhibit m27 to Post-Effective Amendment No. 106 to the Registration Statement of American Century Mutual Funds, Inc. on November 29, 2004, File No. 2-14213, and incorporated herein by reference). (gg) Amendment No. 4 to the Master Distribution and Individual Shareholder Services Plan (B Class), dated May 1, 2005 (filed electronically as Exhibit m18 to Post-Effective Amendment No. 44 to the Registration Statement of American Century Municipal Trust on May 13, 2005, File No. 2-91229, and incorporated herein by reference). (hh) Amendment No. 5 to the Master Distribution and Individual Shareholder Services Plan (B Class), dated September 29, 2005 (filed electronically as Exhibit m31 to Post-Effective Amendment No. 38 to the Registration Statement of American Century World Mutual Funds, Inc. on November 30, 2005, File No. 33-39242, and incorporated herein by reference). (ii) Amendment No. 6 to the Master Distribution and Individual Shareholder Services Plan (B Class), dated March 30, 2006 (filed electronically as Exhibit m34 to Post-Effective Amendment No. 23 to the Registration Statement of American Century Strategic Asset Allocations, Inc. on March 30, 2006, File No. 33-79482, and incorporated herein by reference). (jj) Amendment No. 7 to the Master Distribution and Individual Shareholder Services Plan (B Class), dated November 29, 2006 (filed electronically as Exhibit m42 to Post-Effective Amendment No. 46 to the Registration Statement of American Century Quantitative Equity Funds, Inc. on November 29, 2006, File No. 33-19589, and incorporated herein by reference). (kk) Master Distribution and Individual Shareholder Services Plan (R Class), dated August 29, 2003 (filed electronically as Exhibit m16 to Post-Effective Amendment No. 17 to the Registration Statement of American Century Strategic Asset Allocations, Inc. on August 28, 2003, File No. 33-79482, and incorporated herein by reference). (ll) Amendment No. 1 to the Master Distribution and Individual Shareholder Services Plan (R Class), dated May 1, 2004 (filed electronically as Exhibit m15 to Post-Effective Amendment No. 35 to the Registration Statement of American Century Quantitative Equity Funds, Inc., on April 29, 2004, File No. 33-19589, and incorporated herein by reference). (mm) Amendment No. 2 to the Master Distribution and Individual Shareholder Services Plan (R Class), dated February 24, 2005 (filed electronically as Exhibit m30 to Post-Effective Amendment No. 22 of American Century Strategic Asset Allocations, Inc. on March 30, 2005, File No. 33-79482, and incorporated herein by reference). (nn) Amendment No. 3 to the Master Distribution and Individual Shareholder Services Plan (R Class), dated July 29, 2005 (filed electronically as Exhibit m33 to Post-Effective Amendment No. 111 to the Registration Statement of American Century Mutual Funds, Inc. on July 28, 2005, File No. 2-14213, and incorporated herein by reference). (oo) Amendment No. 4 to the Master Distribution and Individual Shareholder Services Plan (R Class), dated September 29, 2005 (filed electronically as Exhibit m22 to Post-Effective Amendment No. 41 to the Registration Statement of American Century Quantitative Equity Funds, Inc. on September 29, 2005, File No. 33-19589, and incorporated herein by reference). (pp) Amendment No. 5 to the Master Distribution and Individual Shareholder Services Plan (R Class), dated March 30, 2006 (filed electronically as Exhibit m40 to Post-Effective Amendment No. 23 to the Registration Statement of American Century Strategic Asset Allocations, Inc. on March 30, 2006, File No. 33-79482, and incorporated herein by reference). (qq) Amendment No. 6 to the Master Distribution and Individual Shareholder Services Plan (R Class), dated November 29, 2006 (filed electronically as Exhibit m26 to Post-Effective Amendment No. 46 to the Registration Statement of the Registrant on November 29, 2006, File No. 33-19589, and incorporated herein by reference). (rr) Amended and Restated Multiple Class Plan, dated September 3, 2002 (filed electronically as Exhibit n to Post-Effective Amendment No. 35 to the Registration Statement of American Century California Tax-Free and Municipal Funds on December 17, 2002, File No. 2-82734, and incorporated herein by reference). (ss) Amendment No. 1 to the Amended and Restated Multiple Class Plan, dated December 31, 2002 (filed electronically as Exhibit n2 to Post-Effective Amendment No. 39 to the Registration Statement of American Century Municipal Trust on December 23, 2002, File No. 2-91229, and incorporated herein by reference). (tt) Amendment No. 2 to the Amended and Restated Multiple Class Plan, dated August 29, 2003 (filed electronically as Exhibit n3 to Post-Effective Amendment No. 17 to the Registration Statement of American Century Strategic Asset Allocations, Inc. on August 28, 2003, File No. 33-79482, and incorporated herein by reference). (uu) Amendment No. 3 to the Amended and Restated Multiple Class Plan, dated as of February 27, 2004 (filed electronically as Exhibit n4 to Post-Effective Amendment No. 104 to the Registration Statement of American Century Mutual Funds, Inc. on February 26, 2004, File No. 2-14213, and incorporated herein by reference). (vv) Amendment No. 4 to the Amended and Restated Multiple Class Plan, dated May 1, 2004 (filed electronically as Exhibit n5 to Post-Effective Amendment No. 35 to the Registration Statement of American Century Quantitative Equity Funds, Inc., on April 29, 2004, File No. 33-19589, and incorporated herein by reference). (ww) Amendment No. 5 to the Amended and Restated Multiple Class Plan, dated August 1, 2004 (filed electronically as Exhibit n6 to Post-Effective Amendment No. 24 to the Registration Statement of American Century Investment Trust, on July 29, 2004, File No. 33-65170, and incorporated herein by reference). (xx) Amendment No. 6 to the Amended and Restated Multiple Class Plan, dated September 30, 2004 (filed electronically as Exhibit n7 to Post-Effective Amendment No. 20 to the Registration Statement of American Century Strategic Asset Allocations, Inc., on September 29, 2004, File No. 33-79482, and incorporated herein by reference). (yy) Amendment No. 7 to the Amended and Restated Multiple Class Plan, dated November 17, 2004 (filed electronically as Exhibit n8 to Post-Effective Amendment No. 106 to the Registration Statement of American Century Mutual Funds, Inc. on November 29, 2004, File No. 2-14213, and incorporated herein by reference). (zz) Amendment No. 8 to the Amended and Restated Multiple Class Plan, dated February 24, 2005 (filed electronically as Exhibit n9 to Post-Effective Amendment No. 22 of American Century Strategic Asset Allocations, Inc. on March 30, 2005, File No. 33-79482, and incorporated herein by reference). (aaa) Amendment No. 9 to the Amended and Restated Multiple Class Plan, dated July 29, 2005 (filed electronically as Exhibit n10 to Post-Effective Amendment No. 111 to the Registration Statement of American Century Mutual Funds, Inc. on July 28, 2005, File No. 2-14213, and incorporated herein by reference). (bbb) Amendment No. 10 to the Amended and Restated Multiple Class Plan, dated September 29, 2005 (filed electronically as Exhibit n11 to Post-Effective Amendment No. 41 to the Registration Statement of American Century Quantitative Equity Funds, Inc. on September 29, 2005, File No. 33-19589, and incorporated herein by reference). (ccc) Amendment No. 11 to the Amended and Restated Multiple Class Plan, dated March 30, 2006 (filed electronically as Exhibit n12 to the Registration Statement of American Century Strategic Asset Allocations, Inc. on March 30, 2006, File No. 33-79482, and incorporated herein by reference). (ddd) Amendment No. 12 to the Amended and Restated Multiple Class Plan, dated November 29, 2006 (filed electronically as Exhibit n13 to Post-Effective Amendment No. 46 to the Registration Statement of American Century Quantitative Equity Funds, Inc. on November 29, 2006, File No. 33-19589, and incorporated herein by reference). (11) Opinion and Consent of Counsel, dated March 26, 2007, is included herein. (12) Not applicable. (13) (a) Transfer Agency Agreement with Twentieth Century Services, Inc., dated August 1, 1993 (filed electronically as Exhibit 9 to Post-Effective Amendment No. 5 to the Registration Statement of the Registrant on July 31, 1996, File No. 33-64872, and incorporated herein by reference). (b) Credit Agreement with JPMorgan Chase Bank, as Administrative Agent, dated December 17, 2003 (filed electronically as Exhibit h9 to Post-Effective Amendment No. 39 to the Registration Statement of American Century Target Maturities Trust on January 30, 2004, File No. 2-94608, and incorporated herein by reference). (c) Termination, Replacement and Restatement Agreement with JPMorgan Chase Bank N.A., as Administrative Agent, dated December 13, 2006 (filed electronically as Exhibit h16 to Post-Effective Amendment No. 41 to the Registration Statement of American Century California Tax-Free and Municipal Funds on December 28, 2006, File No. 2-82734, and incorporated herein by reference). (d) Customer Identification Program Reliance Agreement (filed electronically as Exhibit h2 to Pre-Effective Amendment No. 1 to the Registration Statement of American Century Growth Funds, Inc. on May 30, 2006, File No. 333-132114, and incorporated herein by reference). (14) Consent of Deloitte & Touche LLP, independent registered public accounting firm, dated March 29, 2007, is included herein. (15) Not applicable. (16) (a) Power of Attorney, dated March 7, 2007 (filed electronically as Exhibit q1 to Post-Effective Amendment No. 24 to the Registration Statement of American Century Strategic Asset Allocations, Inc. on March 29, 2007, File No. 33-79482, and incorporated herein by reference). (b) Secretary's Certificate, dated March 13, 2007 (filed electronically as Exhibit q2 to Post-Effective Amendment No. 24 to the Registration Statement of American Century Strategic Asset Allocations, Inc. on March 29, 2007, File No. 33-79482, and incorporated herein by reference). (17) Form of proxy card is included herein. Item 17. Undertakings Not applicable.SIGNATURES As required by the Securities Act of 1933, as amended, this Registration Statement has been signed on behalf of the Registrant, in the City of Kansas City, State of Missouri on the 30th day of March, 2007. AMERICAN CENTURY CAPITAL PORTFOLIOS, INC. (Registrant) By: * ----------------------------------------- Jonathan S. Thomas President As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated. SIGNATURE TITLE DATE - --------- ----- ---- * President March 30, 2007 - ---------------------- Jonathan S. Thomas * Vice President, March 30, 2007 - ---------------------- Treasurer and Chief Robert J. Leach Accounting Officer * Vice Chairman of the March 30, 2007 - ---------------------- Board and Director James E. Stowers, Jr. * Director March 30, 2007 - ---------------------- Thomas A. Brown * Director March 30, 2007 - ---------------------- Andrea C. Hall, Ph.D. * Director March 30, 2007 - ---------------------- D. D. (Del) Hock * Chairman of the March 30, 2007 - ---------------------- Board and Director Donald H. Pratt * Director March 30, 2007 - ---------------------- Gale E. Sayers * Director March 30, 2007 - ---------------------- M. Jeannine Strandjord * Director March 30, 2007 - ---------------------- Timothy S. Webster *By: /s/ Brian L. Brogan -------------------------------------------- Brian L. Brogan Attorney-in-Fact (pursuant to a Power of Attorney dated March 7, 2007) EXHIBIT INDEX EXHIBIT DESCRIPTION OF DOCUMENT NUMBER EXHIBIT (11) Opinion and Consent of Counsel, dated March 26, 2007. EXHIBIT (14) Consent of Deloitte & Touche LLP, independent registered public accounting firm, dated March 29, 2007. EXHIBIT (17) Form of proxy card.