485BPOS
                            Post-Effective Amendment

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933              [X]

     File No. 33-39242

     Pre-Effective Amendment No.                                     [ ]

     Post-Effective Amendment No. 31                                 [X]

                             and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940      [X]

     File No. 811-6247

     Amendment No. 31                                                [X]

                        (Check appropriate box or boxes.)

                    AMERICAN CENTURY WORLD MUTUAL FUNDS, INC.
       _________________________________________________________________
               (Exact Name of Registrant as Specified in Charter)

                  4500 Main Street, Kansas City, MO 64141-6200
       _________________________________________________________________
               (Address of Principal Executive Offices) (Zip Code)

      Registrant's Telephone Number, including Area Code: (816) 531-5575

David C. Tucker, Esq., 4500 Main Street, 9th Floor, Kansas City, MO 64141
________________________________________________________________________
                   (Name and Address of Agent for Service)

  Approximate Date of Proposed Public Offering: August 29, 2003

It is proposed that this filing will become effective (check appropriate box)

     [ ] immediately upon filing pursuant to paragraph (b)
     [X] on August 29, 2003 pursuant to paragraph (b)
     [ ] 60 days after filing pursuant to paragraph (a)(1)
     [ ] on (date) pursuant to paragraph (a)(1)
     [ ] 75 days after filing pursuant to paragraph (a)(2)
     [ ] on (date) pursuant to paragraph (a)(2) of rule 485.

If appropriate, check the following box:

     [ ] This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

-----------------------------------------------------------------------





















Your
American Century
prospectus

R CLASS

International Growth Fund

AUGUST 29, 2003


THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANYONE WHO
TELLS YOU OTHERWISE IS COMMITTING A CRIME.


American Century Investment Services, Inc.


                                [american century logo and text logo (reg. sm)]




                                 (left margin)

                [american century logo and text logo (reg. sm)]
                                American Century
                                  Investments

                                P.O. Box 419786
                                Kansas City, MO
                                   64141-6786


Dear Investor,


American Century is committed to helping people make the most of their financial
opportunities. That's why we are focused on achieving superior results and
building long-term relationships with investors.


We believe our relationship with you begins with providing a prospectus that's
easy to read, and more importantly, that gives you the information you need to
have confidence in the investment decisions you have made or are soon to make.

Naturally, you may have questions about investing after you read through the
Prospectus. Please contact your investment professional with questions or for
more information about our funds.

Sincerely,

American Century Investment Services, Inc.




Table of Contents

AN OVERVIEW OF THE FUND ...................................................    2
FUND PERFORMANCE HISTORY ..................................................    3
FEES AND EXPENSES .........................................................    5
OBJECTIVES, STRATEGIES AND RISKS ..........................................    6
MANAGEMENT ................................................................    9
INVESTING WITH AMERICAN CENTURY ...........................................   11
SHARE PRICE AND DISTRIBUTIONS .............................................   14
TAXES .....................................................................   15
MULTIPLE CLASS INFORMATION ................................................   17
PERFORMANCE INFORMATION OF OTHER CLASS ....................................   18

             [graphic of triangle]

             This symbol is used throughout the book to highlight DEFINITIONS
             of key investment terms and to provide other helpful information.




AN OVERVIEW OF THE FUND

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

This fund seeks capital growth.

WHAT ARE THE FUND'S PRIMARY INVESTMENT STRATEGIES AND PRINCIPAL RISKS?


The fund managers look for stocks of growing foreign companies. The investment
strategy of this fund is based on the belief that, over the long term, stocks of
companies with earnings and revenue growth have a greater-than-average chance to
increase in value.


The fund's principal risks include

*  MARKET RISK - The value of the fund's shares will go up and down based on the
   performance of the companies whose securities it owns and other factors
   generally affecting the securities market.

*  PRICE VOLATILITY - The value of the fund's shares may fluctuate significantly
   in the short term.

*  PRINCIPAL LOSS - At any given time your shares may be worth more or less than
   the price you paid for them. In other words, it is possible to lose money by
   investing in the fund.

*  FOREIGN RISK - The fund invests primarily in foreign securities, which are
   generally riskier than U.S. securities. As a result the fund is subject to
   foreign risk, meaning that political events (such as civil unrest, national
   elections and imposition of exchange controls), social and economic events
   (such as labor strikes and rising inflation), and natural disasters occurring
   in a country where the fund invests could cause the fund's investments in
   that country to experience gains or losses.

*  CURRENCY RISK - Because the fund generally invests in securities denominated
   in foreign currencies, the fund is subject to currency risk, meaning that the
   fund could experience gains or losses solely on changes in the exchange rate
   between foreign currencies and the U.S. dollar.

WHO MAY WANT TO INVEST IN THE FUND?

The fund may be a good investment if you are

*  seeking long-term capital growth from your investment

*  seeking diversification of your investment portfolio through investment in
   foreign securities

*  comfortable with the risks associated with investing in U.S. and foreign
   growth securities

*  comfortable with short-term price volatility

*  investing through an IRA or other tax-advantaged retirement plan

WHO MAY NOT WANT TO INVEST IN THE FUND?

The fund may not be a good investment if you are

*  seeking current income from your investment

*  investing for a short period of time

*  uncomfortable with the risks associated with investing in U.S. and foreign
   growth securities

*  uncomfortable with short-term volatility in the value of your investment

             [graphic of triangle]

             An investment in the fund is not a bank deposit, and it is not
             insured or guaranteed by the Federal Deposit Insurance Corporation
             (FDIC) or any other government agency.


2


FUND PERFORMANCE HISTORY

When the R Class of the fund has investment results for a full calendar year,
this section will feature charts that show

*  Annual Total Returns

*  Highest and Lowest Quarterly Returns

*  Average Annual Total Returns for the R Class of the fund, including a
   comparison of these returns to a benchmark index

If the R Class had existed during the periods presented, its performance would
have been substantially similar to that of the Investor Class because each
represents an investment in the same portfolio of securities. However,
performance of the R Class would have been lower because of its higher expense
ratios.

Annual Total Returns

The following bar chart shows the performance of the fund's Investor Class
shares for each full calendar year in the life of the fund. It indicates the
volatility of the fund's historical returns from year to year. The return of the
fund's other classes of shares will differ from those shown in the chart,
depending on the expenses of those classes.

INTERNATIONAL GROWTH FUND -- INVESTOR CLASS
-------------------------------------------------------------------------------
2002             -19.25%
2001             -26.79%
2000             -15.01%
1999              64.44%
1998              19.01%
1997              19.72%
1996              14.43%
1995              11.89%
1994              -4.76%
1993              42.65%
-------------------------------------------------------------------------------

The highest and lowest quarterly returns for the periods reflected in the bar
chart are:


                                    Highest                  Lowest
-------------------------------------------------------------------------------
International Growth                48.19% (4Q 1999)         -19.69% (3Q 2002)
-------------------------------------------------------------------------------



                                                                              3


Average Annual Total Returns


The following table shows the average annual total returns of the fund's
Investor Class shares calculated three different ways. Because the fund's R
Class shares did not have a full calendar year's worth of performance, returns
for the R Class shares are not included.


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 two after-tax returns take into
account taxes that may be associated with owning fund shares. Return After Taxes
on Distributions is a fund's actual performance, adjusted by the effect of taxes
on distributions made by the fund during the periods shown. Return After Taxes
on Distributions and Sale of Fund Shares is further adjusted to reflect the tax
impact on any change in the value of fund shares as if they had been sold on the
last day of the period.


After-tax returns are calculated using the highest historical federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-Tax Returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs.


The benchmark is an unmanaged index that has no operating costs and is included
in the table for performance comparison.


INVESTOR CLASS


For the calendar year ended December 31, 2002              1 year     5 years    10 years    Life of Class(1)
--------------------------------------------------------------------------------------------------------------
International Growth(2)

Return Before Taxes                                        -19.25%    -0.33%     7.43%       7.67%

Return After Taxes on Distributions                        -19.37%    -1.33%     5.62%       N/A

Return After Taxes on
Distributions
   and Sale of Fund Shares                                 -11.67%     0.03%     5.80%       N/A

MSCI EAFE Index                                            -15.94%    -2.89%     4.00%       2.57%(3)
   (reflects no deduction for fees, expenses or taxes)
--------------------------------------------------------------------------------------------------------------


(1)  The inception date for the Investor Class is May 9, 1991. Only a fund with
     performance history for less than 10 years shows after-tax returns for
     life of class.


(2)  From August 1, 1996 to July 30,  1997,  a portion of the fund's  management
     fee was waived. As a result,  the fund's returns are higher than they would
     have been had the fee waiver not been in effect.

(3)  Since April 30, 1991, the date closest to the class's inception for which
     data is available.

The performance information on these pages is designed to help you see how fund
returns can vary. Keep in mind that past performance (before and after taxes)
does not predict how the fund will perform in the future.

For current performance information, please call us at 1-800-378-9878.


4


FEES AND EXPENSES

There are no sales loads, fees or other charges

*  to buy fund shares directly from American Century

*  to reinvest dividends in additional shares

*  to exchange into the same class of shares of other American Century funds

*  to redeem your shares other than a $10 fee to redeem by wire

The following table describes the fees and expenses you may pay if you buy and
hold shares of the fund.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

                         Management    Distribution and          Other         Total Annual Fund
                         Fee(1)        Service (12b-1) Fees(2)   Expenses(3)   Operating Expenses
--------------------------------------------------------------------------------------------------
International Growth
    R Class              1.25%         0.50%                     0.00%         1.75%
--------------------------------------------------------------------------------------------------


(1)  The fund has a stepped fee schedule. As a result, the fund's management fee
     rate generally decreases as fund assets increase and increases as fund
     assets decrease.


(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. For more
     information, see Service and Distribution Fees, page 17.


(3)  Other expenses, which include the fees and expenses of the fund's
     independent directors and their legal counsel, as well as interest, are
     expected to be less than 0.005% for the current fiscal year.


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 . . .

*  invest $10,000 in the fund

*  redeem all of your shares at the end of the periods shown below

*  earn a 5% return each year

incur the same operating expenses as shown above

. . . your cost of investing in the fund would be:

                               1 year      3 years      5 years      10 years
-------------------------------------------------------------------------------
International Growth
    R Class                    $177        $548         $943         $2,045
-------------------------------------------------------------------------------


                                                                              5


OBJECTIVES, STRATEGIES AND RISKS

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The fund seeks capital growth.

HOW DOES THE FUND PURSUE ITS INVESTMENT OBJECTIVE?

The fund managers use a growth investment strategy developed by American Century
to invest in stocks of companies that they believe will increase in value over
time. This strategy looks for companies with earnings and revenue growth.
Ideally, the fund managers look for companies whose earnings and revenues are
not only growing, but growing at a successively faster, or accelerating, pace.
This strategy is based on the premise that, over the long term, the stocks of
companies with earnings and revenue growth have a greater-than-average chance to
increase in value.

             [graphic of triangle]

             Accelerating growth is shown, for example, by growth that is faster
             this quarter than last or faster this year than the year before.

The managers use a bottom-up approach to select stocks to buy for the fund. This
means that the managers make their investment decisions based on the business
fundamentals of the individual companies, rather than on economic forecasts or
the outlook for industries or sectors. Using American Century's extensive
computer database, the managers track financial information for thousands of
companies to identify trends in the companies' earnings and revenues. This
information is used to help the fund managers select or hold the stocks of
companies they believe will be able to sustain accelerating growth and sell the
stocks of companies whose growth begins to slow down.

In addition to locating strong companies with earnings and revenue growth, the
fund managers believe that it is important to diversify the fund's holdings
across different countries and geographical regions in an effort to manage the
risks of an international portfolio. For this reason, the fund managers also
consider the prospects for relative economic growth among countries or regions,
economic and political conditions, expected inflation rates, currency exchange
fluctuations and tax considerations when making investments.


The fund managers do not attempt to time the market. Instead, under normal
market conditions, they intend to keep the fund essentially fully invested in
stocks regardless of the movement of stock prices generally. When the managers
believe it is prudent, the fund may invest a portion of its assets in
convertible debt securities, equity-equivalent securities, forward currency
exchange contracts, short-term securities, nonleveraged futures contracts and
other similar securities. Futures contracts, a type of derivative security, can
help the fund's cash assets remain liquid while performing more like stocks. The
fund has a policy governing futures contracts and similar derivative securities
to help manage the risk of these types of investments. For example, the fund
managers cannot invest in a derivative security if it would be possible for the
fund to lose more money than it invested. A complete description of the
derivatives policy is included in the Statement of Additional Information.



6



WHAT KINDS OF SECURITIES DOES THE FUND BUY?


The fund will usually purchase equity securities of foreign companies. This
fund can purchase other types of securities as well, such as domestic and
foreign preferred stocks, convertible debt securities, equity-equivalent
securities, forward currency exchange contracts, nonleveraged futures and
options, notes, bonds and other debt securities of companies, and obligations of
domestic or foreign governments and their agencies.

In the event of exceptional market or economic conditions, the fund may, as a
temporary defensive measure, invest all or a substantial portion of its assets
in cash or high-quality, short-term debt securities, denominated in U.S. dollars
or another currency. To the extent the fund assumes a defensive position, it
will not be pursuing its objective of capital growth.


International Growth's assets will be invested primarily in securities of
companies located in at least three developed countries (excluding the United
States).

In determining whether a company is foreign, the fund managers will consider
various factors, including where the company is headquartered, where the
company's principal operations are located, where the company's revenues are
derived, where the principal trading market is located and the country in which
the company was legally organized. The weight given to each of these factors
will vary depending on the circumstances in a given case. The fund considers
developed countries to include Australia, Austria, Belgium, Canada, Denmark,
Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Luxembourg, the
Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden,
Switzerland, the United Kingdom and the United States. In addition, as used in
the Statement of Additional Information, securities of issuers in emerging
market countries (non-developed) means securities of issuers that (i) have their
principal place of business or principal office in an emerging market country or
(ii) derive a significant portion of their business from emerging market
countries.

When determining the size of a company, the fund managers will consider, among
other factors, the capitalization of the company and the amount of revenues, as
well as other information they obtain about the company.


WHAT ARE THE PRINCIPAL RISKS OF INVESTING IN THE FUND?

The value of the fund's shares depends on the value of the stocks and other
securities it owns. The value of the individual securities the fund owns will go
up and down depending on the performance of the companies that issued them,
general market and economic conditions and investor confidence.

At any given time your shares may be worth more or less than the price you paid
for them. In other words, it is possible to lose money by investing in the fund

Investing in foreign securities has certain unique risks that make it generally
riskier than investing in U.S. securities. These risks include increased
exposure to political, social and economic events in world markets; limited
availability of public information about a company; less-developed trading
markets and regulatory practices; and a lack of uniform financial reporting
practices compared to those that apply in the United States.

In addition, investments in foreign countries are subject to currency risk,
meaning that because the fund's investments are generally denominated in foreign
currencies, the fund could experience gains or losses based solely on changes in
the exchange rate between foreign currencies and the U.S. dollar.


                                                                              7


Investing in securities of smaller foreign companies generally presents unique
risks in  addition to the typical risks of investing in foreign securities.
Smaller companies may have limited resources, trade less frequently and have
less publicly available information. They also may be more sensitive to changing
economic conditions. These factors may cause investments in smaller foreign
companies to experience more price volatility.

Investing in securities of companies located in emerging market countries
generally is also riskier than investing in securities of companies located in
foreign developed countries. Emerging market countries may have unstable
governments and/or economies that are subject to sudden change. These changes
may be magnified by the countries' emergent financial markets, resulting in
significant volatility to investments in these countries. These countries also
may lack the legal, business and social framework to support securities markets.


The fund managers may buy a large amount of a company's stock quickly, and may
dispose of it quickly if the company's earnings or revenues decline. While the
managers believe this strategy provides substantial appreciation potential over
the long term, in the short term it can create a significant amount of share
price volatility. This volatility can be greater than that of the average stock
fund.


The fund's performance also may be affected by investments in initial public
offerings (IPOs). The impact of IPOs on a fund's performance depends on the
strength of the IPO market and the size of the fund. IPOs may have less impact
on a fund's performance as its assets grow.

In summary, investing in this fund is intended for investors who find foreign
securities an appropriate investment and who are willing to accept the increased
risk associated with the fund's investment strategy.


8


MANAGEMENT

WHO MANAGES THE FUND?

The Board of Directors, investment advisor and fund management team play key
roles in the management of the fund.

THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the fund and meets at least
quarterly to review reports about fund operations. Although the Board of
Directors does not manage the fund, it has hired an investment advisor to do so.
More than two-thirds of the directors are independent of the fund's advisor;
that is, they are not employed by and have no financial interest in the advisor.

THE INVESTMENT ADVISOR

The fund's investment advisor is American Century Investment Management, Inc.
The advisor has been managing mutual funds since 1958 and is headquartered at
4500 Main Street, Kansas City, Missouri 64111.

The advisor is responsible for managing the investment portfolio of the fund and
directing the purchase and sale of its investment securities. The advisor also
arranges for transfer agency, custody and all other services necessary for the
fund to operate.


For the services it provides to the R Class of the fund, the advisor receives a
unified management fee based on a percentage of the average net assets of the R
Class of shares. The amount of the management fee for the fund is calculated
daily and paid monthly in arrears. The R Class shares of the fund had no assets
as of the date of this Prospectus, but the class will pay the advisor a unified
management fee of 1.50% of its pro rata share of the first $1 billion of the
fund's average net assets, 1.20% of its pro rata share of the next $1 billion of
the fund's average net assets and 1.10% of its pro rata share over $2 billion of
the fund's average net assets.

Out of the fund's fee, the advisor will pay all expenses of managing and
operating that  fund except brokerage expenses, taxes, interest, fees and
expenses of the independent  directors (including legal counsel fees), and
extraordinary expenses. A portion of each  fund's management fee may be paid by
the fund's advisor to unaffiliated third parties  who provide recordkeeping and
administrative services that would otherwise be performed by an affiliate of the
advisor.



                                                                              9


THE FUND MANAGEMENT TEAM

The advisor uses a team of portfolio managers, assistant portfolio managers and
analysts to manage the fund. The team meets regularly to review portfolio
holdings and discuss purchase and sale activity. Team members buy and sell
securities for the fund as they see fit, guided by the fund's investment
objective and strategy.

The portfolio managers on the investment team are identified below.

HENRIK STRABO

Mr. Strabo, Chief Investment Officer-International Equities, has been a member
of the team that manages International Growth since April 1994. He joined
American Century in 1993 as an Investment Analyst and was promoted to Portfolio
Manager in April 1994. He has a bachelor's degree in business from the
University of Washington.

MARK S. KOPINSKI

Mr. Kopinski, Senior Vice President and Senior Portfolio Manager, has been a
member of the team that manages International Growth since rejoining American
Century in April 1997. He has a bachelor's degree in business administration
from Monmouth College and a master's degree in Asian studies from the University
of Illinois.

KEITH CREVELING

Mr. Creveling, Portfolio Manager, has been a member of the team that manages
International Growth since April 2002. He joined American Century in October
1999 as an analyst. Prior to joining American Century, he was an analyst at
Fiduciary Trust Company International from September 1996 to September 1999. He
has a bachelor of science degree in accounting from Drexel University and an MBA
from the Stern School of Business, New York University. He is a CFA
charterholder.

Code of Ethics

American Century has a Code of Ethics designed to ensure that the interests of
fund  shareholders come before the interests of the people who manage the fund.
Among other provisions, the Code of Ethics prohibits portfolio managers and
other investment personnel from buying securities in an initial public offering
or profiting from the purchase and sale of the same security within 60 calendar
days. In addition, the Code of Ethics requires portfolio managers and other
employees with access to information about the purchase or sale of securities by
the fund to obtain approval before executing permitted personal trades.

FUNDAMENTAL INVESTMENT POLICIES

Fundamental investment policies contained in the Statement of Additional
Information and the investment objective of the fund may not be changed without
shareholder approval. The Board of Directors may change any other policies and
investment strategies.


10


INVESTING WITH AMERICAN CENTURY

ELIGIBILITY FOR R CLASS SHARES

The R Class shares are intended for purchase by participants in
employer-sponsored retirement or savings plans and for persons purchasing shares
through broker-dealers, banks, insurance companies and other financial
intermediaries that provide various administrative and distribution services.

MINIMUM INITIAL INVESTMENT AMOUNTS

To open an account, the minimum initial investments are $2,000 for a Coverdell
Education Savings Account (CESA, formerly an Education IRA), and $2,500 for all
other accounts.

INVESTING THROUGH FINANCIAL INTERMEDIARIES

If you do business with us through a financial intermediary or a retirement
plan, your ability to purchase, exchange and redeem shares will depend on the
policies of that entity. Some policy differences may include

*  minimum investment requirements

*  exchange policies

*  fund choices

*  cutoff time for investments

Please contact your FINANCIAL INTERMEDIARY or plan sponsor for a complete
description of its policies.

             [graphic of triangle]

             FINANCIAL INTERMEDIARIES include banks, broker-dealers, insurance
             companies and investment advisors.

Certain financial intermediaries perform recordkeeping and administrative
services  for their clients that would otherwise be performed by American
Century's transfer agent.  In some circumstances, American Century will pay the
service provider a fee for performing those services.

The financial intermediary through which you may purchase, redeem and exchange
fund shares may charge a transaction-based or other fee for their services.
Those charges are retained by the intermediary and are not shared with American
Century or the fund.

The fund has authorized certain financial intermediaries to accept orders on the
fund's behalf. American Century has contracts with these intermediaries
requiring them to track the time investment orders are received and to comply
with procedures relating to the transmission of orders. Orders must be received
by the intermediary on a fund's behalf before the time the net asset value is
determined in order to receive that day's share price. If those orders are
transmitted to American Century and paid for in accordance with the contract,
they will be priced at the net asset value next determined after your request is
received in the form required by the intermediary.


                                                                             11


MODIFYING OR CANCELING AN INVESTMENT

Investment instructions are irrevocable. That means that once you have mailed or
otherwise transmitted your investment instruction, you may not modify or cancel
it. The fund reserves the right to suspend the offering of shares for a period
of time and to reject any specific investment (including a purchase by
exchange). Additionally, we may refuse a purchase if, in our judgment, it is
of a size that would disrupt the management of the fund.

ABUSIVE TRADING PRACTICES

We discourage market timing and other abusive trading practices, and we take
steps to minimize the effect of these activities in our funds.


Excessive, short-term (market timing) or other abusive trading practices may
disrupt portfolio management strategies and harm fund performance. To minimize
harm to the fund and its shareholders, we reserve the right to reject any
purchase order (including exchanges) from any investor we believe has a history
of abusive trading or whose trading, in our judgment, has been or may be
disruptive to the fund. In making this judgment, we may consider trading done in
multiple accounts under common ownership or control.


YOUR RESPONSIBILITY FOR UNAUTHORIZED TRANSACTIONS

American Century and its affiliated companies use procedures reasonably designed
to confirm that telephone, electronic and other instructions are genuine. These
procedures include recording telephone calls, requesting personalized security
codes or other information, and sending confirmation of transactions. If we
follow these procedures, we are not responsible for any losses that may occur
due to unauthorized instructions. For transactions conducted over the Internet,
we recommend the use of a secure Internet browser. In addition, you should
verify the accuracy of your confirmation statements immediately after you
receive them.

REDEMPTIONS

Your redemption proceeds will be calculated using the NET ASSET VALUE (NAV) next
determined after we receive your transaction request in good order.

             [graphic of triangle]

             A fund's NET ASSET VALUE, or NAV, is the price of the fund's
             shares.

However, we reserve the right to delay delivery of redemption proceeds up to
seven days. For example, each time you make an investment with American Century,
there is a seven-day holding period before we will release redemption proceeds
from those shares, unless you provide us with satisfactory proof that your
purchase funds have cleared. For funds with CheckWriting privileges, we will not
honor checks written against shares subject to this seven-day holding period.
Investments by wire generally require only a one-day holding period. If you
change your address, we may require that any redemption request made within 15
days be submitted in writing and be signed by all authorized signers with their
signatures guaranteed. If you change your bank information, we may impose a
15-day holding period before we will transfer or wire redemption proceeds to
your bank. In addition, we reserve the right to honor certain redemptions with
securities, rather than cash, as described in the next section.


12


SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If, during any 90-day period, you redeem fund shares worth more than $250,000
(or 1% of the value of a fund's assets if that amount is less than $250,000), we
reserve the right to pay part or all of the redemption proceeds in excess of
this amount in readily marketable securities instead of in cash. The fund
managers would select these securities from the fund's portfolio. A payment in
securities can help the fund's remaining shareholders avoid tax  liabilities
that they might otherwise have incurred had the fund sold securities prematurely
to pay the entire redemption amount in cash.

We will value these securities in the same manner as we do in computing the
fund's net asset value. We may provide these securities in lieu of cash without
prior notice. Also, if payment is made in securities, you may have to pay
brokerage or other transaction costs to convert the securities to cash.


If your redemption would exceed this limit and you would like to avoid being
paid in securities, please provide us 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. This minimizes the effect of the
redemption on the fund and its remaining investors.


REDEMPTION OF SHARES IN LOW-BALANCE ACCOUNTS

If your account balance falls below the minimum initial investment amount for
any reason other than as a result of market fluctuation, we will notify you and
give you 90 days to meet the minimum. If you do not meet the deadline, American
Century reserves the right to redeem the shares in the account and send the
proceeds to your address of record. Please note that shares redeemed in this
manner may be subject to a sales charge if held less than the applicable time
period. You also may incur tax liability as a result of the redemption.


SIGNATURE GUARANTEES

A signature guarantee -- which is different from a notarized signature --
is a warranty  that the signature presented is genuine. We may require a
signature guarantee for the following transactions:

*  Your redemption or distribution check, Check-A-Month or automatic redemption
   is made payable to someone other than the account owners

*  Your redemption proceeds or distribution amount is sent by wire or EFT to a
   destination other than your personal bank account

*  You are transferring ownership of an account over $100,000

We reserve the right to require a signature guarantee for other transactions, at
our discretion.


A NOTE ABOUT MAILINGS TO SHAREHOLDERS


To reduce the amount of mail you receive from us, we may deliver a single copy
of certain investor documents (such as shareholder reports and prospectuses) to
investors who share an address, even if accounts are registered under different
names. If you prefer to receive multiple copies of these documents individually
addressed, please contact your financial intermediary directly.

RIGHT TO CHANGE POLICIES


We reserve the right to change any stated investment requirement, including
those that relate to purchases, exchanges and redemptions. We also may alter,
add or discontinue any service or privilege. Changes may affect all investors or
only those in certain classes or groups.


                                                                             13


SHARE PRICE AND DISTRIBUTIONS

SHARE PRICE

American Century determines the NAV of the fund as of the close of regular
trading on the New York Stock Exchange (usually 4 p.m. Eastern time) on each day
the Exchange is open. On days when the Exchange is closed (including certain
U.S. holidays), we do not calculate the NAV. A fund share's NAV is the current
value of the fund's assets, minus any liabilities, divided by the number of fund
shares outstanding.


If current market prices of securities owned by the fund are not readily
available from an independent pricing service, the advisor may determine their
fair value in accordance with procedures adopted by the fund's board. For
example, if an event occurs after the close of the exchange on which a fund's
portfolio securities are principally traded that is likely to have changed the
value of the securities, the advisor may determine the securities' fair value.
Trading of securities in foreign markets may not take place every day the
Exchange is open. Also, trading in some foreign markets and on some electronic
trading networks may take place on weekends or holidays when a fund's NAV is not
calculated. So, the value of a fund's portfolio may be affected on days when you
can't purchase or redeem shares of the fund.


We will price your purchase, exchange or redemption at the NAV next determined
after we receive your transaction request in GOOD ORDER.

             [graphic of triangle]

             GOOD ORDER means that your instructions have been received  in the
             form required by American Century. This may include, for  example,
             providing the fund name and account number, the amount  of the
             transaction and all required signatures.

DISTRIBUTIONS

Federal tax laws require the fund to make distributions to its shareholders in
order to qualify as a "regulated investment company." Qualification as a
regulated investment company means the fund will not be subject to state or
federal income tax on amounts distributed. The distributions generally consist
of dividends and interest received by the fund, as well as CAPITAL GAINS
realized on the sale of investment securities. The fund generally pays
distributions from net income, if any, once a year in December. Distributions
from realized capital gains are paid twice a year, usually in March and
December. The fund may make more frequent distributions, if necessary, to comply
with Internal Revenue Code provisions.

             [graphic of triangle]

             CAPITAL GAINS are increases in the values of capital assets,  such
             as stock, from the time the assets are purchased.

You will participate in fund distributions when they are declared, starting the
next business day after your purchase is effective. For example, if you purchase
shares on a day that a distribution is declared, you will not receive that
distribution. If you redeem shares, you will receive any distribution declared
on the day you redeem. If you redeem all shares, we will include any
distributions received with your redemption proceeds.

Participants in tax-deferred retirement plans must reinvest all distributions.
For investors investing through taxable accounts, we will reinvest distributions
unless you elect to receive them in cash.


14


TAXES

The tax consequences of owning shares of the fund will vary depending on whether
you own them through a taxable or tax-deferred account. Tax consequences result
from distributions by the fund of dividend and interest income it has received
or capital gains it has generated through its investment activities. Tax
consequences also may result when investors sell fund shares after the net asset
value has increased or decreased.

Tax-Deferred Accounts

If you purchase fund shares through a tax-deferred account, such as an IRA or a
qualified employer-sponsored retirement or savings plan, income and capital
gains distributions usually will not be subject to current taxation but will
accumulate in your account under the plan on a tax-deferred basis. Likewise,
moving from one fund to another fund within a plan or tax-deferred account
generally will not cause you to be taxed. For information about the tax
consequences of making purchases or withdrawals through a tax-deferred account,
please consult your plan administrator, your summary plan description or a tax
advisor.

Taxable Accounts

If you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund shares.


If you invest through a taxable account, you may be able to claim a foreign tax
credit for any foreign income taxes paid by the fund. In order to qualify for
this tax credit, certain requirements must be satisfied. Please consult the
Statement of Additional Information for a more complete discussion of the tax
consequences of owning shares of the fund.


Taxability of Distributions


Fund distributions may consist of income such as dividends and interest earned
by a fund from its investments, or capital gains generated by a fund from the
sale of its investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as QUALIFIED DIVIDEND INCOME and you meet a
minimum required holding period with respect to your shares of the fund, in
which case they are taxed as long-term capital gains.


             [graphic of triangle]

             QUALIFIED DIVIDEND INCOME is a dividend received by the fund from
             the stock of a domestic or qualifying foreign corporation, provided
             that the fund has held the stock for a required holding period.

For capital gains recognized by the fund prior to May 6, 2003, the following
rates apply:

                                     Tax Rate for 10%       Tax Rate for
Type of Distribution                 and 15% Brackets       All Other Brackets
--------------------------------------------------------------------------------
Short-term capital gains             Ordinary income rate   Ordinary income rate
--------------------------------------------------------------------------------
Long-term capital gains (1-5 years)  10%                    20%
--------------------------------------------------------------------------------
Long-term capital gains (> 5 years)   8%                    20%
--------------------------------------------------------------------------------

For capital gains recognized by the fund after May 5, 2003, and for income
distributions designated as qualified dividend income, the following rates
apply:

                                     Tax Rate for 10% and   Tax Rate for
Type of Distribution                 15% Brackets           All Other Brackets
--------------------------------------------------------------------------------
Short-term capital gains             Ordinary Income        Ordinary Income
--------------------------------------------------------------------------------
Long-term capital gains (> 1 year)
and Qualified Dividend Income        5%                     15%
--------------------------------------------------------------------------------


                                                                              15


The tax status of any distributions of capital gains is determined by how long
the fund held the underlying security that was sold, not by how long you have
been invested in the fund, or whether you reinvest your distributions in
additional shares or take them in cash. For taxable accounts, American Century
or your financial intermediary will inform you of the tax status of fund
distributions for each calendar year in an annual tax mailing (Form 1099-DIV).

Distributions also may be subject to state and local taxes. Because everyone's
tax situation is unique, you may want to consult your tax professional about
federal, state and local tax consequences.

Taxes on Transactions

Your redemptions -- including exchanges to other American Century funds -- are
subject to capital gains tax. The table above can provide a general guide for
your potential tax liability when selling or exchanging fund shares. Short-term
capital gains are gains on fund shares you held for 12 months or less. Long-term
capital gains are gains on fund shares you held for more than 12 months. If your
shares decrease in value, their sale or exchange will result in a long-term or
short-term capital loss. However, you should note that loss realized upon the
sale or exchange of shares held for six months or less will be treated as a
long-term capital loss to the extent of any distribution of long-term capital
gain to you with respect to those shares. If a loss is realized on the
redemption of fund shares, the reinvestment in additional fund shares within 30
days before or after the redemption may be subject to the wash sale rules of the
Internal Revenue Code. This may result in a postponement of the recognition of
such loss for federal income tax purposes.

If you have not certified to us that your Social Security number or tax
identification number is correct and that you are not subject to withholding, we
are required to withhold and pay to the IRS the applicable federal withholding
tax rate on taxable dividends, capital gains distributions and redemption
proceeds.

Buying a Dividend

Purchasing fund shares in a taxable account shortly before a distribution is
sometimes known as buying a dividend. In taxable accounts, you must pay income
taxes on the distribution whether you reinvest the distribution or take it in
cash. In addition, you will have to pay taxes on the distribution whether the
value of your investment decreased, increased or remained the same after you
bought the fund shares.

The risk in buying a dividend is that the fund's portfolio may build up taxable
gains throughout the period covered by a distribution, as securities are sold at
a profit. The fund distributes those gains to you, after subtracting any losses,
even if you did not own the shares when the gains occurred.

If you buy a dividend, you incur the full tax liability of the distribution
period, but you may not enjoy the full benefit of the gains realized in the
fund's portfolio.


16


MULTIPLE CLASS INFORMATION

American Century offers seven classes of the fund through financial
intermediaries: A Class, B Class, C Class, R Class, Advisor Class, Investor
Class and Institutional Class. The shares offered by this Prospectus are R Class
shares, which are offered primarily through employer-sponsored retirement plans
and through institutions like investment advisors, banks, broker-dealers and
insurance companies.


The other classes have different fees, expenses and/or minimum investment
requirements from the classes offered by this Prospectus. The difference in the
fee structures between the classes is the result of their separate arrangements
for shareholder and distribution services and not the result of any difference
in amounts charged by the advisor for core investment advisory services.
Accordingly, the core investment advisory expenses do not vary by class.
Different fees and expenses will affect performance. For additional information
concerning the other classes of shares not offered by this Prospectus, call us
at 1-800-378-9878.


You also can contact a sales representative or financial intermediary who offers
that class of shares.


Except as described herein, all classes of shares of the fund have identical
voting, dividend, liquidation and other rights, preferences, terms and
conditions. The only differences between the classes are (a) each class may be
subject to different expenses specific to that class; (b) each class has a
different identifying designation or name; (c) each class has exclusive voting
rights with respect to matters solely affecting such class; (d) each class may
have different exchange privileges; (e) the Institutional Class may provide for
automatic conversion from that class into shares of the Investor Class of the
same fund; and (f) the B Class provides for automatic conversion from that class
into shares of the A Class of the same fund after eight years.


Service and Distribution Fees


Investment Company Act Rule 12b-1 permits mutual funds that adopt a written plan
to pay certain expenses associated with the distribution of their shares out of
fund assets. The fund's R Class shares have a 12b-1 plan. Under the R Class
Plan, the fund's R Class pays an annual fee of 0.50% of R Class average net
assets to the distributor. The distributor pays all or a portion of such fees
to the investment advisors, banks, broker-dealers, insurance  companies and
recordkeepers that make R Class shares available. Because these fees are paid
out of the fund's assets on an ongoing basis, over time these fees will increase
the cost of your investment and may cost you more than other types of sales
charges. For additional information about the Plan and its terms, see Multiple
Class Structure in the Statement of Additional Information.


In addition, the advisor or the fund's distributor may make payments for various
services or other expenses out of their past profits or other available sources.
Such expenses may include distribution services, shareholder services or
marketing, promotional or related expenses. The amount of these payments is
determined by the advisor or the distributor and is not paid by you.


                                                                             17


PERFORMANCE INFORMATION OF OTHER CLASS


The following financial information is provided to show the performance of the
fund's original class of shares. This class, the Investor Class, has a total
expense ratio that is lower than the R Class offered by this Prospectus. If the
R Class had existed during the periods presented, its performance would have
been lower because of the additional expenses.

The table on the next page itemizes what contributed to the changes in the
Investor Class share price during the most recently ended fiscal year. It also
shows the changes in share price for this period in comparison to changes over
the last five fiscal years.


On a per-share basis, the table includes as appropriate

*  share price at the beginning of the period

*  investment income and capital gains or losses

*  distributions of income and capital gains paid to investors

*  share price at the end of the period

The table also includes some key statistics for the period as appropriate

*  TOTAL RETURN - the overall percentage of return of the fund, assuming the
   reinvestment of all distributions

*  EXPENSE RATIO - the operating expenses of the fund as a percentage of average
   net assets

*  NET INCOME RATIO - the net investment income of the fund as a percentage of
   average net assets

*  PORTFOLIO TURNOVER - the percentage of the fund's investment portfolio that
   is replaced during the period


The Financial Highlights have been audited by Deloitte & Touche LLP, independent
auditors. Their Independent Auditors' Report and the financial statements are
included in the fund's Annual Report, which is available upon request.



18


INTERNATIONAL GROWTH FUND

Investor Class


FOR A SHARE OUTSTANDING THROUGHOUT THE YEARS ENDED NOVEMBER 30
-----------------------------------------------------------------------------------------------------------------------
                                                          2002        2001         2000       1999         1998
-----------------------------------------------------------------------------------------------------------------------

PER-SHARE DATA

Net Asset Value, Beginning of Period                     $7.86       $12.05       $13.02      $9.25        $9.22
-----------------------------------------------------------------------------------------------------------------------
Income From Investment Operations
---------------------------------------------------
  Net Investment Income (Loss)(1)                         0.06         0.04        (0.02)     (0.01)        0.03
---------------------------------------------------
  Net Realized and Unrealized Gain (Loss)                (1.20)       (2.50)       (0.22)      3.95         1.31
-----------------------------------------------------------------------------------------------------------------------
  Total From Investment Operations                       (1.14)       (2.46)       (0.24)      3.94         1.34
-----------------------------------------------------------------------------------------------------------------------
Distributions
---------------------------------------------------
  From Net Investment Income                             (0.03)          --        (0.01)     (0.02)       (0.03)
---------------------------------------------------
  From Net Realized Gains                                   --        (1.73)       (0.72)     (0.15)       (1.28)
-----------------------------------------------------------------------------------------------------------------------
  Total Distributions                                    (0.03)       (1.73)       (0.73)     (0.17)       (1.31)
-----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period                           $6.69        $7.86       $12.05     $13.02        $9.25
=======================================================================================================================
  TOTAL RETURN(2)                                       (14.54)%     (24.18)%      (2.47)%    43.22%       16.74%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average Net Assets          1.25%        1.21%        1.20%       1.27%        1.33%
---------------------------------------------------
Ratio of Net Investment Income
(Loss)
to Average Net Assets                                      0.76%        0.48%      (0.16)%     (0.06)%        0.33%
---------------------------------------------------
Portfolio Turnover Rate                                     215%         178%         116%        117%         190%
---------------------------------------------------
Net Assets, End of Period (in thousands)              $2,410,600   $3,290,867   $4,455,433  $3,701,903   $2,448,162
-----------------------------------------------------------------------------------------------------------------------


(1)  Computed using average shares outstanding throughout the period.

(2)  Total return assumes reinvestment of net investment income and capital
     gains distributions, if any. 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.


                                                                             19


NOTES


20


NOTES


                                                                             21


MORE INFORMATION ABOUT THE FUND IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the fund's
investments and the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period.

Statement of Additional Information (SAI)

The SAI contains a more detailed, legal description of the fund's operations,
investment restrictions, policies and practices. The SAI is incorporated by
reference into this Prospectus. This means that it is legally part of this
Prospectus, even if you don't request a copy.

You may obtain a free copy of the SAI or annual and semiannual reports, and ask
questions about the fund or your accounts, by contacting American Century at the
address or telephone numbers listed below.

You also can get information about the fund (including the SAI) from the
Securities and Exchange Commission (SEC). The SEC charges a duplicating fee to
provide copies of this information.

In person                 SEC Public Reference Room
                          Washington, D.C.
                          Call 202-942-8090 for location and hours.

On the Internet           * EDGAR database at www.sec.gov
                          * By email request at publicinfo@sec.gov

By mail                   SEC Public Reference Section
                          Washington, D.C. 20549-0102

This Prospectus shall not constitute an offer to sell securities of a fund in
any state, territory, or other jurisdiction where the fund's shares have not
been registered or  qualified for sale, unless such registration or
qualification is not required, or under any circumstances in which such offer or
solicitation would be unlawful.


Fund Reference                    Fund Code      Ticker      Newspaper Listing
--------------------------------------------------------------------------------
International Growth Fund
     R Class                      214            N/A         Intl Gr
--------------------------------------------------------------------------------


Investment Company Act File No. 811-6247



AMERICAN CENTURY INVESTMENTS
P.O. Box 419786
Kansas City, Missouri 64141-6786
1-800-378-9878

0308
SH-PRS-34868























American Century
statement of
additional information

AUGUST 29, 2003


American Century World Mutual Funds, Inc.

Global Growth Fund
International Growth Fund
International Opportunities Fund
International Discovery Fund
Emerging Markets Fund
Life Sciences Fund
Technology Fund


This Statement of Additional Information adds to the discussion in the funds'
Prospectuses dated April 1, 2003, and August 29, 2003, but is not a prospectus.
The Statement of Additional Information should be read in conjunction with the
funds' current Prospectuses. If you would like a copy of a Prospectus, please
contact us at one of the addresses or telephone numbers listed on the back cover
or visit American Century's Web site at www.americancentury.com.


This Statement of Additional Information incorporates by reference certain
information that appears in the funds' annual and semiannual reports, which are
delivered to all investors. You may obtain a free copy of the funds' annual or
semiannual reports by calling 1-800-345-2021.

American Century
Investment Services, Inc.

[american century logo and text logo (reg. sm)]




Table of Contents


The Funds' History ........................................................    2
Fund Investment Guidelines ................................................    3
Fund Investments and Risks ................................................    4
     Investment Strategies and Risks ......................................    4
     Investment Policies ..................................................   15
     Portfolio Turnover ...................................................   18
Management ................................................................   19
     The Board of Directors ...............................................   22
     Ownership of Fund Shares .............................................   26
     Code of Ethics .......................................................   26
The Funds' Principal Shareholders .........................................   28
Service Providers .........................................................   32
     Investment Advisor ...................................................   32
     Transfer Agent and Administrator .....................................   35
     Distributor ..........................................................   35
Other Service Providers ...................................................   36
     Custodian Banks ......................................................   36
     Independent Auditors .................................................   36
Brokerage Allocation ......................................................   36
Information about Fund Shares .............................................   37
     Multiple Class Structure .............................................   37
     Buying and Selling Fund Shares .......................................   47
     Valuation of a Fund's Securities .....................................   47
Taxes .....................................................................   49
     Federal Income Taxes .................................................   49
     State and Local Taxes ................................................   50
How Fund Performance Information Is Calculated ............................   51
     Performance Comparisons ..............................................   55
     Permissible Advertising Information ..................................   56
     Multiple Class Performance Advertising ...............................   56
Financial Statements ......................................................   56
Explanation of Fixed-Income Securities Ratings ............................   57



                                                                            1


THE FUNDS' HISTORY

American Century World Mutual Funds, Inc., is a registered open-end management
investment company that was organized in 1990 as a Maryland corporation under
the name Twentieth Century World Investors, Inc. In January 1997 it changed its
name to American Century World Mutual Funds, Inc. Throughout this Statement of
Additional Information we refer to American Century World Mutual Funds, Inc. as
the corporation.

Each fund described in this Statement of Additional Information is a separate
series of the corporation and operates for many purposes as if it were an
independent company. Each fund has its own investment objective, strategy,
management team, assets, and tax identification and stock registration numbers.


Fund/Class                      Ticker Symbol     Inception Date
--------------------------------------------------------------------------------
Global Growth
   Investor Class               TWGGX             12/01/1998
--------------------------------------------------------------------------------
   Institutional Class          AGGIX             08/01/2000
--------------------------------------------------------------------------------
   C Class                      AGLCX             03/01/2002
--------------------------------------------------------------------------------
   Advisor Class                AGGRX             02/05/1999
--------------------------------------------------------------------------------
International Growth
   Investor Class               TWIEX             05/09/1991
--------------------------------------------------------------------------------
   Institutional Class          TGRIX             11/20/1997
--------------------------------------------------------------------------------
   A Class                      CAIGX             01/31/2003
--------------------------------------------------------------------------------
   B Class                      CBIGX             01/31/2003
--------------------------------------------------------------------------------
   C Class                      AIWCX             06/04/2001
--------------------------------------------------------------------------------
   R Class                      N/A               08/29/2003
--------------------------------------------------------------------------------
   Advisor Class                TWGAX             10/02/1996
--------------------------------------------------------------------------------
International Opportunities
   Investor Class               AIOIX             06/01/2001
--------------------------------------------------------------------------------
   Institutional Class          ACIOX             01/09/2003
--------------------------------------------------------------------------------
International Discovery
   Investor Class               TWEGX             04/01/1994
--------------------------------------------------------------------------------
   Institutional Class          TIDIX             01/02/1998
--------------------------------------------------------------------------------
   Advisor Class                ACIDX             04/28/1998
--------------------------------------------------------------------------------
Emerging Markets
   Investor Class               TWMIX             09/30/1997
--------------------------------------------------------------------------------
   Institutional Class          AMKIX             01/28/1999
--------------------------------------------------------------------------------
   C Class                      ACECX             12/18/2001
--------------------------------------------------------------------------------
   Advisor Class                AEMMX             05/12/1999
--------------------------------------------------------------------------------
Life Sciences
   Investor Class               ALSIX             06/30/2000
--------------------------------------------------------------------------------
   Institutional Class          AILSX             07/17/2000
--------------------------------------------------------------------------------
   C Class                      ALFSX             11/29/2001
--------------------------------------------------------------------------------
   Advisor Class                ALSVX             11/14/2000
--------------------------------------------------------------------------------
Technology
   Investor Class               ATCIX             06/30/2000
--------------------------------------------------------------------------------
   Institutional Class          ATYIX             07/14/2000
--------------------------------------------------------------------------------
   C Class                      N/A               N/A
--------------------------------------------------------------------------------
   Advisor Class                ATADX             06/30/2000
--------------------------------------------------------------------------------



2


FUND INVESTMENT GUIDELINES

This section explains the extent to which the funds' advisor, American Century
Investment Management, Inc., can use various investment vehicles and strategies
in managing a fund's assets. Descriptions of the investment techniques and risks
associated with each appear in the section, Investment Strategies and Risks,
which begins on page 4. In the case of the funds' principal investment
strategies, these descriptions elaborate upon discussions contained in the
Prospectuses.

Global Growth, International Growth, International Opportunities, International
Discovery and Emerging Markets are diversified as defined in the Investment
Company Act of 1940 (the Investment Company Act). Diversified means that, with
respect to 75% of its total assets, each fund will not invest more than 5% of
its total assets in the securities of a single issuer or own more than 10% of
the outstanding voting securities of a single issuer.

Life Sciences and Technology are non-diversified.  Nondiversified means that a
fund  may invest a greater portion of its assets in a smaller number of
securities than a diversified fund.

To meet federal tax requirements for qualification as a regulated investment
company, each fund must limit its investments so that at the close of each
quarter of its taxable year

(1)  no more than 25% of its total assets are invested in the securities of a
     single issuer (other than the U.S. government or a regulated investment
     company), and

(2)  with respect to at least 50% of its total assets, no more than 5% of its
     total assets are invested in the securities of a single issuer.

In general, within the restrictions outlined here and in the funds'
Prospectuses, the fund managers have broad powers to decide how to invest fund
assets, including the power to hold them uninvested.

Investments are varied according to what is judged advantageous under changing
economic conditions. It is the advisor's policy to retain maximum flexibility in
management without restrictive provisions as to the proportion of one or another
class of securities that may be held, subject to the investment restrictions
described below. It is the advisor's intention that each fund will generally
consist of foreign (and U.S. in the case of Global Growth, Life Sciences and
Technology) equity and equity-equivalent securities. However, subject to the
specific limitations applicable to a fund, the funds' management teams may
invest the assets of each fund in varying amounts in other instruments and may
use other techniques, such as those reflected in Table 1 on page 4, when such a
course is deemed appropriate in order to pursue a fund's investment objective.

So long as a sufficient number of acceptable securities are available, the fund
managers intend to keep the funds fully invested, regardless of the movement of
stock or bond prices generally. In most circumstances, each fund's actual level
of cash and cash equivalents will be less than 10%. The managers may use stock
index futures as a way to expose each fund's cash assets to the market, while
maintaining liquidity. As mentioned in the Prospectuses, the managers may not
leverage a fund's portfolio, so there is no greater market risk to the funds
than if they purchase stocks. See Derivative Securities, page 8, Short-term
Securities, page 11 and Futures and Options, page 11.


                                                                            3


TABLE 1
--------------------------------------------------------------------------------


An "X" in the table below indicates that the fund may invest in the security or
employ the investment technique that appears in the corresponding row.

                                                           International Opportunities,
                                         Global Growth        International Discovery      Life Sciences
                                              and                       and                     and
                                     International Growth        Emerging Markets            Technology
---------------------------------------------------------------------------------------------------------
Foreign Securities                             X                         X                        X
---------------------------------------------------------------------------------------------------------
Equity Equivalents                             X                         X                        X
---------------------------------------------------------------------------------------------------------
Debt Securities                               35%                       35%                      35%
                                                                 (except Emerging
                                                                  Markets is 20%)
---------------------------------------------------------------------------------------------------------
Convertible Debt Securities                    X                         X                        X
---------------------------------------------------------------------------------------------------------
Short Sales                                    X                         X                        X
---------------------------------------------------------------------------------------------------------
Portfolio Lending                           33-1/3%                   33-1/3%                 33-1/3%
---------------------------------------------------------------------------------------------------------
Derivative Securities                          X                         X                        X
---------------------------------------------------------------------------------------------------------
Investments in Issuers with Limited           5%             10% (except International           15%
Operating Histories                                            Opportunities is 20%)
---------------------------------------------------------------------------------------------------------
Repurchase Agreements                          X                         X                        X
---------------------------------------------------------------------------------------------------------
When-Issued and Forward
Commitment Agreements                          X                         X                        X
---------------------------------------------------------------------------------------------------------
Restricted and Illiquid Securities            15%                       15%                      15%
---------------------------------------------------------------------------------------------------------
Short-Term Securities                          X                         X                        X
---------------------------------------------------------------------------------------------------------
Other Investment Companies                    10%                       10%                      10%
---------------------------------------------------------------------------------------------------------
Futures & Options                              X                         X                        X
---------------------------------------------------------------------------------------------------------
Foreign Currency Transactions and
Forward Exchange Contracts                     X                         X                        X
---------------------------------------------------------------------------------------------------------


FUND INVESTMENTS AND RISKS

INVESTMENT STRATEGIES AND RISKS

This section describes investment vehicles and techniques that the fund managers
can use in managing a fund's assets. It also details the risks associated with
each, because each investment vehicle and technique contributes to a fund's
overall risk profile. To determine whether a fund may invest in a particular
investment vehicle and whether there is a limit on the amount of fund assets
that can be invested in such vehicle or technique, consult Table 1.

Foreign Securities

Each fund may invest in the securities of foreign issuers, including foreign
governments, when these securities meet the fund's standards of selection.

A description of the funds' investment strategies regarding foreign securities
is contained in the funds' Prospectuses. Investing in securities of foreign
issuers generally involves greater risks than investing in the securities of
domestic companies including:

CURRENCY RISK. The value of the foreign investments held by the funds may be
significantly affected by changes in currency exchange rates. The dollar value
of a foreign security generally decreases when the value of the dollar rises
against the foreign currency in which the security is denominated and tends to
increase when the value of the dollar falls against such currency. In addition,
the value of fund assets may be affected by losses and other expenses incurred
in converting between various currencies in order


4



to purchase and sell foreign securities, and by currency restrictions, exchange
control regulation, currency devaluations and political developments.


POLITICAL AND ECONOMIC RISK. The economies of many of the countries in which the
funds invest are not as developed as the economy of the United States and may be
subject to significantly different forces. Political or social instability,
expropriation, nationalization, or confiscatory taxation, and limitations on the
removal of funds or other assets, could also adversely affect the value of
investments. Further, the funds may find it difficult or be unable to enforce
ownership rights, pursue legal remedies or obtain judgments in foreign courts.

REGULATORY RISK. Foreign companies generally are not subject to the regulatory
controls imposed on U.S. issuers and, in general, there is less publicly
available information about foreign securities than is available about domestic
securities. Many foreign companies are not subject to uniform accounting,
auditing and financial reporting standards, practices and requirements
comparable to those applicable to domestic companies. Income from foreign
securities owned by the funds may be reduced by a withholding tax at the source,
which would reduce dividend income payable to shareholders.

MARKET AND TRADING RISK. Brokerage commission rates in foreign countries, which
are generally fixed rather than subject to negotiation as in the United States,
are likely to be higher. The securities markets in many of the countries in
which the funds invest will have substantially less trading volume than the
principal U.S. markets. As a result, the securities of some companies in these
countries may be less liquid and more volatile than comparable U.S. securities.
Furthermore, one securities broker may represent all or a significant part of
the trading volume in a particular country, resulting in higher trading costs
and decreased liquidity due to a lack of alternative trading partners. There is
generally less government regulation and supervision of foreign stock exchanges,
brokers and issuers, which may make it difficult to enforce contractual
obligations.

CLEARANCE AND SETTLEMENT RISK. Foreign securities markets also have different
clearance and settlement procedures, and in certain markets there have been
times when settlements have been unable to keep pace with the volume of
securities transactions, making it difficult to conduct such transactions.
Delays in clearance and settlement could result in temporary periods when assets
of the funds are uninvested and no return is earned. The inability of the funds
to make intended security purchases due to clearance and settlement problems
could cause the funds to miss attractive investment opportunities. Inability to
dispose of portfolio securities due to clearance and settlement problems could
result either in losses to the funds due to subsequent declines in the value of
the portfolio security or, if the fund has entered into a contract to sell the
security, liability to the purchaser.

OWNERSHIP RISK. Evidence of securities ownership may be uncertain in many
foreign countries. In many of these countries, the most notable of which is the
Russian Federation, the ultimate evidence of securities ownership is the share
register held by the issuing company or its registrar. While some companies may
issue share certificates or provide extracts of the company's share register,
these are not negotiable instruments and are not effective evidence of
securities ownership. In an ownership dispute, the company's share register is
controlling. As a result, there is a risk that a fund's trade details could be
incorrectly or fraudulently entered on the issuer's share register at the time
of the transaction, or that a fund's ownership position could thereafter be
altered or deleted entirely, resulting in a loss to the fund. While the funds
intend to invest directly in Russian companies that utilize an independent
registrar, there can be no assurance that such investments will not result in a
loss to the funds.

EMERGING MARKETS RISK . Investing in emerging market companies generally is also
riskier than investing in other foreign securities. Emerging market countries
may have unstable governments and/or economies that are subject to sudden
change. These changes may be magnified by the countries' emergent financial
markets, resulting in significant volatility to investments in these countries.
These countries also may lack the legal, business and social framework to
support securities markets.


                                                                            5


As a result of the foregoing risks, these funds are intended for aggressive
investors seeking significant gains through investments in foreign securities.
Those investors must be willing and able to accept the significantly greater
risks associated with the investment strategy that the funds will pursue. An
investment in the funds is not appropriate for individuals with limited
investment resources or who are unable to tolerate fluctuations in the value of
their investment.

Equity Equivalents

In addition to investing in common stocks, the funds may invest in other equity
securities and equity equivalents, including securities that permit a fund to
receive an equity interest in an issuer, the opportunity to acquire an equity
interest in an issuer, or the opportunity to receive a return on its investment
that permits the fund to benefit from the growth over time in the equity of an
issuer. Examples of equity securities and equity equivalents include preferred
stock, convertible preferred stock and convertible debt securities. Equity
equivalents also may include securities whose value or return is derived from
the value or return of a different security. An example of one type of
derivative security in which the funds might invest is a depositary receipt.

The funds may make foreign investments either directly in foreign securities or
indirectly by purchasing depositary receipts, depositary shares or similar
instruments (DRs) for foreign securities. DRs are securities that are listed on
exchanges or quoted in over-the-counter markets in one country but represent
shares of issuers domiciled in another country. The funds also may purchase
securities of such issuers in foreign markets, either on foreign securities
exchanges, electronic trading networks or in over-the-counter markets.

Debt Securities


The managers believe that common stocks and other equity and equity-equivalent
securities ordinarily offer the greatest potential for capital appreciation. The
funds may invest, however, in any security the managers believe has the
potential for capital appreciation. When the managers believe that the total
return potential of other securities equals or exceeds the potential return of
equity securities, each fund (except Emerging Markets, which is 20%) may invest
up to 35% of its assets in such other securities. The other securities the funds
may invest in are bonds, notes and debt securities of companies, and obligations
of domestic or foreign governments and their agencies.


The funds may purchase sovereign debt instruments issued or guaranteed by
foreign governments or their agencies, including debt of emerging market
countries. Sovereign debt may be in the form of conventional securities or other
types of debt instruments, such as loans or loan participations. Sovereign debt
of emerging market countries may involve a high degree of risk and may present a
risk of default or renegotiation or rescheduling of debt payments.

In the event of exceptional market or economic conditions, the funds may, as a
temporary defensive measure, invest all or a substantial portion of their assets
in cash or high-quality, short-term debt securities. To the extent a fund
assumes a defensive position, it will not be pursuing its objective of capital
growth. International Growth and Global Growth will limit their purchases of
debt securities to investment-grade obligations except convertible debt
securities, which may be rated below investment grade. For long-term debt
obligations, this includes securities that are rated Baa or better by Moody's
Investors Service, Inc. or BBB or better by Standard & Poor's Corporation (S&P),
or that are not rated but are considered by the managers to be of equivalent
quality. According to Moody's, bonds rated Baa are medium-grade and possess some
speculative characteristics. A BBB rating by S&P indicates S&P's belief that a
security exhibits a satisfactory degree of safety and capacity


6



for repayment, but is more vulnerable to adverse economic conditions or changing
circumstances than is the case with higher-quality debt securities. See
Explanation of Fixed-Income Securities Ratings, page 57.

International Discovery, International Opportunities and Emerging Markets have
no credit quality or maturity restrictions with regard to the bonds, corporate
debt securities and government obligations in which the funds may invest,
although less than 35% of each fund's assets will be invested in
below-investment-grade fixed income securities. See Explanation of Fixed-Income
Securities Ratings, page 57. Debt securities, especially those of issuers in
emerging market countries, may be of poor quality and speculative in nature.
While these securities will be chosen primarily for their appreciation
potential, a fund also may take the potential for income into account when
selecting investments.


In addition to other factors that will affect its value, the value of a fund's
investments in fixed income securities will change as prevailing interest rates
change. In general, the prices of such securities vary inversely with interest
rates. As prevailing interest rates fall, the prices of bonds and other
securities that trade on a yield basis rise. When prevailing interest rates
rise, bond prices generally fall. These changes in value may, depending upon the
particular amount and type of fixed-income securities holdings of a fund, impact
the net asset value of that fund's shares.

Convertible Debt Securities

A convertible debt security is a fixed-income security that offers the potential
for capital appreciation through a conversion feature that enables the holder to
convert the fixed-income security into a stated number of shares of common
stock. As fixed-income securities, convertible debt securities provide a stable
stream of income, with generally higher yields than common stocks. Convertible
debt securities offer the potential to benefit from increases in the market
price of the underlying common stock; however, they generally offer lower yields
than non-convertible securities of similar quality. Of course, as with all
fixed-income securities, there can be no assurance of current income because the
issuers of the convertible debt securities may default on their obligations. In
addition, there can be no assurance of capital appreciation because the value of
the underlying common stock will fluctuate.

Convertible debt securities generally are subordinated to other similar but
non-convertible securities of the same issuer, although convertible bonds, as
corporate debt obligations, enjoy seniority in right of payment to all equity
securities, and convertible preferred stock is senior to common stock of the
same issuer. Because of the subordination feature, however, convertible debt
securities typically have lower ratings from ratings organizations than similar
non-convertible securities.

Unlike a convertible security that is a single security, a synthetic convertible
security is comprised of two distinct securities that together resemble
convertible securities in certain respects. Synthetic convertible securities are
created by combining non-convertible bonds or preferred stocks with warrants or
stock call options. The options that will form elements of synthetic convertible
securities will be listed on a securities exchange or NASDAQ. The two components
of a synthetic convertible security, which will be issued with respect to the
same entity, generally are not offered as a unit, and may be purchased and sold
by the fund at different times. Synthetic convertible securities differ from
convertible securities in certain respects. Each component of a synthetic
convertible security has a separate market value and responds differently to
market fluctuations. Investing in a synthetic convertible security involves the
risk normally found in holding the securities comprising the synthetic
convertible security.


                                                                            7


Short Sales

A fund may engage in short sales for cash management purposes only if, at the
time of the short sale, the fund owns or has the right to acquire securities
equivalent in kind and amount to the securities being sold short.

In a short sale, the seller does not immediately deliver the securities sold and
is said to have a short position in those securities until delivery occurs. To
make delivery to the purchaser, the executing broker borrows the securities
being sold short on behalf of the seller. While the short position is
maintained, the seller collateralizes its obligation to deliver the securities
sold short in an amount equal to the proceeds of the short sale plus an
additional margin amount established by the Board of Governors of the Federal
Reserve. If a fund engages in a short sale, the fund's custodian will segregate
cash, cash equivalents or other appropriate liquid securities on its records in
an amount sufficient to meet the purchase price. There will be certain
additional transaction costs associated with short sales, but the fund will
endeavor to offset these costs with income from the investment of the cash
proceeds of short sales.

Portfolio Lending

In order to realize additional income, a fund may lend its portfolio securities.
Such loans may not exceed one-third of the fund's total net assets valued at
market except

*  through the purchase of debt securities in accordance with its investment
   objectives, policies and limitations, or

*  by engaging in repurchase agreements with respect to portfolio securities.

Derivative Securities

To the extent permitted by its investment objectives and policies, each of the
funds may invest in securities that are commonly referred to as derivative
securities. Generally, a derivative security is a financial arrangement the
value of which is based on, or derived from, a traditional security, asset, or
market index. Certain derivative securities are more accurately described as
index/structured securities. Index/structured securities are derivative
securities whose value or performance is linked to other equity securities (such
as depositary receipts), currencies, interest rates, indices or other financial
indicators (reference indices). For example, Standard & Poor's Depositary
Receipts, also known as "SPIDERS," track the price performance and dividend
yield of the S&P Index by providing a stake in the stocks that make up that
index.

In addition, the funds may make foreign investments either directly in foreign
securities or indirectly by purchasing derivative securities known as depositary
receipts, depositary shares or similar instruments (DRs) for foreign securities.
DRs are securities that are listed on exchanges or quoted in over-the-counter
markets in one country but represent shares of issuers domiciled in another
country. The funds also may purchase securities of issuers in foreign markets,
either on foreign securities exchanges, electronic trading networks or in
over-the-counter markets.

Some derivative securities, such as mortgage-related and other asset-backed
securities, are in many respects like any other investment, although they may be
more volatile or less liquid than more traditional debt securities.

There are many different types of derivative securities and many different ways
to use them. Futures and options are commonly used for traditional hedging
purposes to attempt to protect a fund from exposure to changing interest rates,
securities prices, or currency exchange rates and for cash management purposes
as a low-cost method of gaining exposure to a particular securities market
without investing directly in those securities.

No fund may invest in a derivative security unless the reference index or the
instrument to which it relates is an eligible investment for the fund.


8


The return on a derivative security may increase or decrease, depending upon
changes in the reference index or instrument to which it relates.

There are risks associated with investing in derivative securities, including:

*  the risk that the underlying security, interest rate, market index or other
   financial asset will not move in the direction the fund managers anticipate;

*  the possibility that there may be no liquid secondary market, or the
   possibility that price fluctuation limits may be imposed by the exchange,
   either of which may make it difficult or impossible to close out a position
   when desired;

*  the risk that adverse price movements in an instrument can result in a loss
   substantially greater than a fund's initial investment; and

*  the risk that the counterparty will fail to perform its obligations.

The Board of Directors has approved the advisor's policy regarding investments
in derivative securities. That policy specifies factors that must be considered
in connection with a purchase of derivative securities and provides that a fund
may not invest in a derivative security if it would be possible for a fund to
lose more money than it had invested. The policy also establishes a committee
that must review certain proposed purchases before the purchases can be made.
The advisor will report on fund activity in derivative securities to the Board
of Directors as necessary.


Investments in Issuers with Limited Operating Histories


The funds may invest a portion of their assets in the securities of issuers with
limited operating histories. The fund managers consider an issuer to have a
limited operating history if that issuer has a record of less than three years
of continuous operation. The managers will consider periods of capital
formation, incubation, consolidations, and research and development in
determining whether a particular issuer has a record of three years of
continuous operation.

Investments in securities of issuers with limited operating histories may
involve greater risks than investments in securities of more mature issuers. By
their nature, such issuers present limited operating histories and financial
information upon which the managers may base their investment decision on behalf
of the funds. In addition, financial and other information regarding such
issuers, when available, may be incomplete or inaccurate.


For purposes of this limitation, "issuers" refers to operating companies that
issue securities for the purposes of issuing debt or raising capital as a means
of financing their ongoing operations. It does not, however, refer to entities,
corporate or otherwise, that are created for the express purpose of securitizing
obligations or income streams. For example, a fund's investments in a trust
created for the purpose of pooling mortgage obligations would not be subject to
the limitation.


Repurchase Agreements

Each fund may invest in repurchase agreements when they present an attractive
short-term return on cash that is not otherwise committed to the purchase of
securities pursuant to the investment policies of that fund.

A repurchase agreement occurs when, at the time the fund purchases an
interest-bearing obligation, the seller (a bank or a broker-dealer registered
under the Securities Exchange Act of 1934) agrees to purchase it on a specified
date in the future at an agreed-upon price. The repurchase price reflects an
agreed-upon interest rate during the time the fund's money is invested in the
security.

Because the security purchased constitutes collateral security for the
repurchase obligation, a repurchase agreement can be considered a loan
collateralized by the security purchased. The fund's risk is the seller's
ability to pay the agreed-upon repurchase price on the repurchase date. If the
seller defaults, the fund may incur costs in disposing of the collateral, which
would reduce the amount realized thereon. If the seller seeks relief under


                                                                            9



the bankruptcy laws, the disposition of the collateral may be delayed or
limited. To the extent the value of the security decreases, the fund could
experience a loss.


The funds will limit repurchase agreement transactions to securities issued by
the U.S. government, its agencies and instrumentalities, and will enter into
such transactions with those banks and securities dealers who are deemed
creditworthy by the funds' advisor.

Repurchase Agreements maturing in more than seven days would count toward a
fund's 15% limit on illiquid securities.

When-Issued and Forward Commitment Agreements

The funds may sometimes purchase new issues of securities on a when-issued or
forward commitment basis in which the transaction price and yield are each fixed
at the time the commitment is made, but payment and delivery occur at a future
date.

For example, a fund may sell a security and at the same time make a commitment
to purchase the same or a comparable security at a future date and specified
price. Conversely, a fund may purchase a security and at the same time make a
commitment to sell the same or a comparable security at a future date and
specified price. These types of transactions are executed simultaneously in what
are known as dollar-rolls, cash and carry, or financing transactions. For
example, a broker-dealer may seek to purchase a particular security that a fund
owns. The fund will sell that security to the broker-dealer and simultaneously
enter into a forward commitment agreement to buy it back at a future date. This
type of transaction generates income for the fund if the dealer is willing to
execute the transaction at a favorable price in order to acquire a specific
security.

When purchasing securities on a when-issued or forward commitment basis, a fund
assumes the rights and risks of ownership, including the risks of price and
yield fluctuations. Market rates of interest on debt securities at the time of
delivery may be higher or lower than those contracted for on the when-issued
security. Accordingly, the value of the security may decline prior to delivery,
which could result in a loss to the fund. While the fund will make commitments
to purchase or sell securities with the intention of actually receiving or
delivering them, it may sell the securities before the settlement date if doing
so is deemed advisable as a matter of investment strategy.

In purchasing securities on a when-issued or forward commitment basis, a fund
will segregate cash, cash equivalents or other appropriate liquid securities on
its records in an amount sufficient to meet the purchase price. When the time
comes to pay for the when-issued securities, a fund will meet its obligations
with available cash, through the sale of securities, or, although it would not
normally expect to do so, by selling the when-issued securities themselves
(which may have a market value greater or less than the fund's payment
obligation). Selling securities to meet when-issued or forward commitment
obligations may generate taxable capital gains or losses.

Restricted and Illiquid Securities

The funds may, from time to time, purchase restricted or illiquid securities,
including Rule 144A securities, when they present attractive investment
opportunities that otherwise meet the funds' criteria for selection. Rule 144A
securities are securities that are privately placed with and traded among
qualified institutional investors rather than the general public. Although Rule
144A securities are considered restricted securities, they are not necessarily
illiquid.

With respect to securities eligible for resale under Rule 144A, the staff of the
Securities and Exchange Commission (SEC) has taken the position that the
liquidity of such securities in the portfolio of a fund offering redeemable
securities is a question of fact for the Board of Directors to determine, such
determination to be based upon a consideration of the readily available trading
markets and the review of any contractual restrictions. Accordingly, the Board
of Directors is responsible for developing and establishing the guidelines and
procedures for determining the liquidity of Rule 144A securities. As allowed by
Rule 144A, the Board of Directors has delegated the day-to-day function of
determining the liquidity of


10


Rule 144A securities to the fund managers. The board retains the responsibility
to monitor the implementation of the guidelines and procedures it has adopted.

Because the secondary market for restricted securities is generally limited to
certain qualified institutional investors, the liquidity of such securities may
be limited accordingly and a fund may, from time to time, hold a Rule 144A or
other security that is illiquid. In such an event, the fund managers will
consider appropriate remedies to minimize the effect on such fund's liquidity.

Short-Term Securities

In order to meet anticipated redemptions, anticipated purchases of additional
securities for a fund's portfolio, or, in some cases, for temporary defensive
purposes, the funds may invest a portion of their assets in money market and
other short-term securities.

Examples of those securities include:

*  Securities issued or guaranteed by the U.S. government and its agencies and
   instrumentalities;

*  Commercial Paper;

*  Certificates of Deposit and Euro Dollar Certificates of Deposit;

*  Bankers' Acceptances;

*  Short-term notes, bonds, debentures, or other debt instruments;


*  Repurchase agreements; and

*  Money market funds.


Under the Investment Company Act, a fund's investment in other investment
companies (including money market funds) currently is limited to (a) 3% of the
total voting stock of any one investment company; (b) 5% of the fund's total
assets with respect to any one investment company; and (c) 10% of the fund's
total assets in the aggregate.

These investments may include investments in money market funds managed by the
advisor. Any investments in money market funds must be consistent with the
investment policies and restrictions of the fund making the investment.

Other Investment Companies

Each of the funds may invest up to 10% of its total assets in other investment
companies, such as mutual funds, provided that the investment is consistent with
the fund's investment policies and restrictions. These investments may include
investments in money market funds managed by the advisor. Under the Investment
Company Act, a fund's investment in such securities, subject to certain
exceptions, currently is limited to

*  3% of the total voting stock of any one investment company,
*  5% of the fund's total assets with respect to any one investment company and
*  10% of the fund's total assets in the aggregate.

Such purchases will be made in the open market where no commission or profit to
a sponsor or dealer results from the purchase other than the customary brokers'
commissions. As a shareholder of another investment company, a fund would bear,
along with other shareholders, its pro rata portion of the other investment
company's expenses, including advisory fees. These expenses would be in addition
to the management fee that each fund bears directly in connection with its own
operations.

Futures and Options

Each fund may enter into futures contracts, options or options on futures
contracts. Futures contracts provide for the sale by one party and purchase by
another party of a specific security at a specified future time and price.
Generally, futures transactions will be used to:


                                                                            11


*  protect against a decline in market value of the fund's securities (taking a
   short futures position), or

*  protect against the risk of an increase in market value for securities in
   which the fund generally invests at a time when the fund is not
   fully-invested (taking a long futures position), or

*  provide a temporary substitute for the purchase of an individual security
   that may be purchased in an orderly fashion.

Some futures and options strategies, such as selling futures, buying puts and
writing calls, hedge a fund's investments against price fluctuations. Other
strategies, such as buying futures, writing puts and buying calls, tend to
increase market exposure.

Although other techniques may be used to control a fund's exposure to market
fluctuations, the use of futures contracts may be a more effective means of
hedging this exposure. While a fund pays brokerage commissions in connection
with opening and closing out futures positions, these costs are lower than the
transaction costs incurred in the purchase and sale of the underlying
securities.

For example, the sale of a future by a fund means the fund becomes obligated to
deliver the security (or securities, in the case of an index future) at a
specified price on a specified date. The purchase of a future means the fund
becomes obligated to buy the security (or securities) at a specified price on a
specified date. The fund managers may engage in futures and options transactions
based on securities indices, provided that the transactions are consistent with
the fund's investment objectives. Examples of indices that may be used include
the Morgan Stanley Capital International (MSCI) Europe, Australia, Far East
Index, the MSCI Emerging Markets Free Index, the S&P SuperComposite 1500
Technology Index and the S&P SuperComposite Health Care Index. The managers also
may engage in futures and options transactions based on specific securities.
Futures contracts are traded on national futures exchanges. Futures exchanges
and trading are regulated under the Commodity Exchange Act by the Commodity
Futures Trading Commission (CFTC), a U.S. government agency.

Index futures contracts differ from traditional futures contracts in that when
delivery takes place, no stocks or bonds change hands. Instead, these contracts
settle in cash at the spot market value of the index. Although other types of
futures contracts by their terms call for actual delivery or acceptance of the
underlying securities, in most cases the contracts are closed out before the
settlement date. A futures position may be closed by taking an opposite position
in an identical contract (i.e., buying a contract that has previously been sold
or selling a contract that has previously been bought).

Unlike when the fund purchases or sells a bond, no price is paid or received by
the fund upon the purchase or sale of the future. Initially, the fund will be
required to deposit an amount of cash or securities equal to a varying specified
percentage of the contract amount. This amount is known as initial margin. The
margin deposit is intended to ensure completion of the contract (delivery or
acceptance of the underlying security) if it is not terminated prior to the
specified delivery date. A margin deposit does not constitute a margin
transaction for purposes of the funds' investment restrictions. Minimum initial
margin requirements are established by the futures exchanges and may be revised.

In addition, brokers may establish margin deposit requirements that are higher
than the exchange minimums. Cash held in the margin accounts generally is not
income producing. However, coupon bearing securities, such as Treasury bills and
bonds, held in margin accounts generally will earn income. Subsequent payments,
to and from the broker, called variation margin, will be made on a daily basis
as the price of the underlying securities or index fluctuates, making the future
more or less valuable, a process known as marking the contract to market.
Changes in variation margin are recorded by the fund as unrealized gains or
losses. At any time prior to expiration of the future, the fund may elect to
close the position by taking an opposite position. A final determination of
variation margin is then made; additional cash is required to be paid by or
released to the fund and the fund realizes a loss or gain.


12


Risks Related to Futures and Options Transactions

Futures and options prices can be volatile, and trading in these markets
involves certain risks. If the fund managers apply a hedge at an inappropriate
time or judge interest rate or equity market trends incorrectly, futures and
options strategies may lower a fund's return.

A fund could suffer losses if it were unable to close out its position because
of an illiquid secondary market. Futures contracts may be closed out only on an
exchange that provides a secondary market for these contracts, and there is no
assurance that a liquid secondary market will exist for any particular futures
contract at any particular time. Consequently, it may not be possible to close a
futures position when the fund managers consider it appropriate or desirable to
do so. In the event of adverse price movements, a fund would be required to
continue making daily cash payments to maintain its required margin. If the fund
had insufficient cash, it might have to sell portfolio securities to meet daily
margin requirements at a time when the fund managers would not otherwise elect
to do so. In addition, a fund may be required to deliver or take delivery of
instruments underlying futures contracts it holds. The fund managers will seek
to minimize these risks by limiting the futures contracts entered into on behalf
of the funds to those traded on national futures exchanges and for which there
appears to be a liquid secondary market.

A fund could suffer losses if the prices of its futures and options positions
were poorly correlated with its other investments, or if securities underlying
futures contracts purchased by a fund had different maturities than those of the
portfolio securities being hedged. Such imperfect correlation may give rise to
circumstances in which a fund loses money on a futures contract at the same time
that it experiences a decline in the value of its hedged portfolio securities. A
fund also could lose margin payments it has deposited with a margin broker, if,
for example, the broker became bankrupt.

Most futures exchanges limit the amount of fluctuation permitted in futures
contract prices during a single trading day. The daily limit establishes the
maximum amount that the price of a futures contract may vary either up or down
from the previous day's settlement price at the end of the trading session. Once
the daily limit has been reached in a particular type of contract, no trades may
be made on that day at a price beyond the limit. However, the daily limit
governs only price movement during a particular trading day and, therefore, does
not limit potential losses. In addition, the daily limit may prevent liquidation
of unfavorable positions. Futures contract prices have occasionally moved to the
daily limit for several consecutive trading days with little or no trading,
thereby preventing prompt liquidation of futures positions and subjecting some
futures traders to substantial losses.

Options on Futures

By purchasing an option on a futures contract, a fund obtains the right, but not
the obligation, to sell the futures contract (a put option) or to buy the
contract (a call option) at a fixed strike price. A fund can terminate its
position in a put option by allowing it to expire or by exercising the option.
If the option is exercised, the fund completes the sale of the underlying
security at the strike price. Purchasing an option on a futures contract does
not require a fund to make margin payments unless the option is exercised.

Although they do not currently intend to do so, the funds may write (or sell)
call options that obligate them to sell (or deliver) the option's underlying
instrument upon exercise of the option. While the receipt of option premiums
would mitigate the effects of price declines, the funds would give up some
ability to participate in a price increase on the underlying security. If a fund
were to engage in options transactions, it would own the futures contract at the
time a call were written and would keep the contract open until the obligation
to deliver it pursuant to the call expired.


                                                                            13


Restrictions on the Use of Futures Contracts and Options

Each fund may enter into futures contracts, options or options on futures
contracts.

Under the Commodity Exchange Act, a fund may enter into futures and options
transactions (a) for hedging purposes without regard to the percentage of assets
committed to initial margin and option premiums or (b) for other than hedging
purposes, provided that assets committed to initial margin and option premiums
do not exceed 5% of the fund's total assets. To the extent required by law, each
fund will segregate cash, cash equivalents or other appropriate liquid
securities on its records in an amount sufficient to cover its obligations under
the futures contracts and options.

Foreign Currency Transactions and Forward Exchange Contracts

A fund may conduct foreign currency transactions on a spot basis (i.e., cash) or
forward basis (i.e., by entering into forward currency exchange contracts,
currency options and futures transactions to purchase or sell foreign
currencies). Although foreign exchange dealers generally do not charge a fee for
such transactions, they do realize a profit based on the difference between the
prices at which they are buying and selling various currencies.

Forward contracts are customized transactions that require a specific amount of
a currency to be delivered at a specific exchange rate on a specific date or
range of dates in the future. Forward contracts are generally traded in an
interbank market directly between currency traders (usually larger commercial
banks) and their customers. The parties to a forward contract may agree to
offset or terminate the contract before its maturity, or may hold the contract
to maturity and complete the contemplated currency exchange.

The following summarizes the principal currency management strategies involving
forward contracts. A fund may also use swap agreements, indexed securities, and
options and futures contracts relating to foreign currencies for the same
purposes.

(1)  Settlement Hedges or Transaction Hedges. When the fund managers wish to
     lock in the U.S. dollar price of a foreign currency denominated security
     when a fund is purchasing or selling the security, the fund may enter into
     a forward contract to do so. This type of currency transaction, often
     called a "settlement hedge" or "transaction hedge," protects the fund
     against an adverse change in foreign currency values between the date a
     security is purchased or sold and the date on which payment is made or
     received (i.e., settled). Forward contracts to purchase or sell a foreign
     currency may also be used by a fund in anticipation of future purchases or
     sales of securities denominated in foreign currency, even if the specific
     investments have not yet been selected by the fund managers. This strategy
     is often referred to as "anticipatory hedging."

(2)  Position Hedges. When the fund managers believe that the currency of a
     particular foreign country may suffer substantial decline against the U.S.
     dollar, a fund may enter into a forward contract to sell foreign currency
     for a fixed U.S. dollar amount approximating the value of some or all of
     its portfolio securities either denominated in, or whose value is tied to,
     such foreign currency. This use of a forward contract is sometimes referred
     to as a "position hedge." For example, if a fund owned securities
     denominated in Euro, it could enter into a forward contract to sell Euro in
     return for U.S. dollars to hedge against possible declines in the Euro's
     value. This hedge would tend to offset both positive and negative currency
     fluctuations, but would not tend to offset changes in security values
     caused by other factors.

     A fund could also hedge the position by entering into a forward contract to
     sell another currency expected to perform similarly to the currency in
     which the fund's existing investments are denominated. This type of hedge,
     often called a "proxy hedge," could offer advantages in terms of cost,
     yield or efficiency, but may not hedge currency exposure as effectively as
     a simple position hedge against U.S. dollars. This type of hedge may result
     in losses if the currency used to hedge does not perform similarly to the
     currency in which the hedged securities are denominated.


14


     The precise matching of forward contracts in the amounts and values of
     securities involved generally would not be possible because the future
     values of such foreign currencies will change as a consequence of market
     movements in the values of those securities between the date the forward
     contract is entered into and the date it matures. Predicting short-term
     currency market movements is extremely difficult, and the successful
     execution of a short-term hedging strategy is highly uncertain. Normally,
     consideration of the prospect for currency parities will be incorporated
     into the long-term investment decisions made with respect to overall
     diversification strategies. However, the managers believe that it is
     important to have flexibility to enter into such forward contracts when
     they determine that a fund's best interests may be served.

     At the maturity of the forward contract, the fund may either sell the
     portfolio security and make delivery of the foreign currency, or it may
     retain the security and terminate the obligation to deliver the foreign
     currency by purchasing an "offsetting" forward contract with the same
     currency trader obligating the fund to purchase, on the same maturity date,
     the same amount of the foreign currency.

     It is impossible to forecast with absolute precision the market value of
     portfolio securities at the expiration of the forward contract.
     Accordingly, it may be necessary for a fund to purchase additional foreign
     currency on the spot market (and bear the expense of such purchase) if the
     market value of the security is less than the amount of foreign currency
     the fund is obligated to deliver and if a decision is made to sell the
     security and make delivery of the foreign currency the fund is obligated to
     deliver.

(3)  Shifting Currency Exposure. A fund may also enter into forward contracts to
     shift its investment exposure from one currency into another. This may
     include shifting exposure from U.S. dollars to foreign currency, or from
     one foreign currency to another foreign currency. This strategy tends to
     limit exposure to the currency sold, and increase exposure to the currency
     that is purchased, much as if a fund had sold a security denominated in one
     currency and purchased an equivalent security denominated in another
     currency. For example, if the fund managers believed that the U.S. dollar
     may suffer a substantial decline against the Euro, they could enter into a
     forward contract to purchase Euros for a fixed amount of U.S. dollars. This
     transaction would protect against losses resulting from a decline in the
     value of the U.S. dollar, but would cause the fund to assume the risk of
     fluctuations in the value of the Euro.

Successful use of currency management strategies will depend on the fund
management team's skill in analyzing currency values. Currency management
strategies may substantially change a fund's investment exposure to changes in
currency rates and could result in losses to a fund if currencies do not perform
as the fund managers anticipate. For example, if a currency's value rose at a
time when the fund manager hedged a fund by selling the currency in exchange for
U.S. dollars, a fund would not participate in the currency's appreciation.
Similarly, if the fund managers increase a fund's exposure to a currency and
that currency's value declines, a fund will sustain a loss. There is no
assurance that the fund managers' use of foreign currency management strategies
will be advantageous to a fund or that they will hedge at appropriate times.

The fund will cover outstanding forward contracts by maintaining liquid
portfolio securities denominated in, or whose value is tied to, the currency
underlying the forward contract or the currency being hedged. To the extent that
the fund is not able to cover its forward currency positions with underlying
portfolio securities, the fund's custodian will segregate cash or other liquid
assets having a value equal to the aggregate amount of the fund's commitments
under forward contracts entered into with respect to position hedges, settlement
hedges and anticipatory hedges.

INVESTMENT POLICIES

Unless otherwise indicated, with the exception of the percentage limitations on
borrowing, the policies described below apply at the time a fund enters into a
transaction. Accordingly, any later increase or decrease beyond the specified
limitation resulting from a change in a fund's net assets will not be considered
in determining whether it has complied with its investment policies.


                                                                            15


Fundamental Investment Policies

The funds' fundamental investment policies are set forth below. These investment
policies and the funds' investment objectives set forth in their prospectuses
may not be changed without approval of a majority of the outstanding votes of
shareholders of a fund, as determined in accordance with the Investment Company
Act.

Subject           Policy
--------------------------------------------------------------------------------
Senior Securities A fund may not issue senior securities, except as permitted
                  under the Investment Company Act.
--------------------------------------------------------------------------------
Borrowing         A fund may not borrow money, except for temporary or emergency
                  purposes (not for leveraging or investment) in an amount not
                  exceeding 33-1/3% of the fund's total assets.
--------------------------------------------------------------------------------
Lending           A fund may not lend any security or make any other loan if, as
                  a result, more than 33-1/3% of the fund's total assets would be
                  lent to other parties, except, (i) through the purchase of
                  debt securities in accordance with its investment objective,
                  policies and limitations or (ii) by engaging in repurchase
                  agreements with respect to portfolio securities.
--------------------------------------------------------------------------------
Real Estate       A fund may not purchase or sell real estate unless acquired as
                  a result of ownership of securities or other instruments. This
                  policy shall not prevent a fund from investing in securities
                  or other instruments backed by real estate or securities of
                  companies that deal in real estate or are engaged in the real
                  estate business.
--------------------------------------------------------------------------------
Concentration     A fund may not concentrate its investments in securities of
                  issuers in a particular industry (other than securities issued
                  or guaranteed by the U.S. government or any of its agencies or
                  instrumentalities) except that the funds may concentrate their
                  investments in securities of issuers as follows: engaged in
                  the technology or telecommunications industries and related
                  industry groups (Technology only); or engaged in the medical
                  and health care industry and related industry groups (Life
                  Sciences only).
--------------------------------------------------------------------------------
Underwriting      A fund may not act as an underwriter of securities issued by
                  others, except to the extent that the fund may be considered
                  an underwriter within the meaning of the Securities Act of
                  1933 in the disposition of restricted securities.
--------------------------------------------------------------------------------
Commodities       A fund may not purchase or sell physical commodities unless
                  acquired as a result of ownership of securities or other
                  instruments; provided that this limitation shall not prohibit
                  the fund from purchasing or selling options and futures
                  contracts or from investing in securities or other instruments
                  backed by physical commodities.
--------------------------------------------------------------------------------
Control           A fund may not invest for purposes of exercising control over
                  management.
--------------------------------------------------------------------------------

For purposes of the investment restrictions relating to lending and borrowing,
the funds have received an exemptive order from the SEC regarding an interfund
lending program. Under the terms of the exemptive order, the funds may borrow
money from or lend money to other ACIM-advised funds that permit such
transactions. All such transactions will be subject to the limits for borrowing
and lending set forth above. The funds will borrow money through the program
only when the costs are equal to or lower than the cost of short-term bank
loans. Interfund loans and borrowings normally extend only overnight, but can
have a maximum duration of seven days. The funds will lend through the program
only when the returns are higher than those available from other short-term
instruments (such as repurchase agreements). The funds may have to borrow from a
bank at a higher interest rate if an interfund loan is called or not renewed.
Any delay in repayment to a lending fund could result in a lost investment
opportunity or additional borrowing costs.

For purposes of the investment restriction relating to concentration, a fund
(except Life Sciences and Technology) shall not purchase any securities that
would cause 25% or more of the value of the fund's total assets at the time of
purchase to be invested in the securities of one or more issuers conducting
their principal business activities in the same industry, provided that


16


(a)  there is no limitation with respect to obligations issued or guaranteed by
     the U.S. government, any state, territory or possession of the United
     States, the District of Columbia or any of their authorities, agencies,
     instrumentalities or political subdivisions and repurchase agreements
     secured by such obligations,

(b)  wholly owned finance companies will be considered to be in the industries
     of their parents if their activities are primarily related to financing the
     activities of their parents,

(c)  utilities will be divided according to their services, for example, gas,
     gas transmission, electric and gas, electric and telephone will each be
     considered a separate industry, and

(d)  personal credit and business credit businesses will be considered separate
     industries.

Nonfundamental Investment Policies

In addition, the funds are subject to the following investment policies that are
not fundamental and may be changed by the Board of Directors.

Subject           Policy
--------------------------------------------------------------------------------
Leveraging        A fund may not purchase additional investment securities at
                  any time during which outstanding borrowings exceed 5% of the
                  total assets of the fund.
--------------------------------------------------------------------------------
Liquidity         A fund may not purchase any security or enter into a
                  repurchase agreement if, as a result, more than 15% of its net
                  assets would be invested in illiquid securities. Illiquid
                  securities include repurchase agreements not entitling the
                  holder to payment of principal and interest within seven days
                  and in securities that are illiquid by virtue of legal or
                  contractual restrictions on resale or the absence of a readily
                  available market.
--------------------------------------------------------------------------------
Short Sales       A fund may not sell securities short, unless it owns or has
                  the right to obtain securities equivalent in kind and amount
                  to the securities sold short, and provided that transactions
                  in futures contracts and options are not deemed to constitute
                  selling securities short.
--------------------------------------------------------------------------------
Margin            A fund may not purchase securities on margin, except to the
                  fund may obtain such short-term credits as are necessary for
                  the clearance of transactions, and provided that margin
                  payments in connection with futures contracts and options on
                  futures contracts shall not constitute purchasing securities
                  on margin.
--------------------------------------------------------------------------------
Futures and       A fund may enter into futures contracts and write and buy
Options           put and call options relating to futures contracts. A fund may
                  not, however, enter into leveraged futures transactions if it
                  would be possible for the fund to lose more money than it
                  invested.
--------------------------------------------------------------------------------
Issuers with      A fund may invest a portion of its assets in the securities
Limited           of issuers with limited operating histories. An issuer is
Operating         considered to have a limited operating history if that issuer
Histories         has a record of less than three years of continuous operation
                  Periods of capital formation, incubation, consolidations,
                  and research and development may be considered in
                  determining whether a particular issuer has a record
                  of three years of continuous operation.
--------------------------------------------------------------------------------

The Investment Company Act imposes certain additional restrictions upon the
funds' ability to acquire securities issued by insurance companies,
broker-dealers, underwriters or investment advisors, and upon transactions with
affiliated persons as defined by the Act. It also defines and forbids the
creation of cross and circular ownership. Neither the SEC nor any other agency
of the federal or state government participates in or supervises the management
of the funds or their investment practices or policies.


                                                                            17


PORTFOLIO TURNOVER

The portfolio turnover rates of each fund are listed in the Financial Highlights
tables in the funds' Prospectuses.

The fund managers will sell securities without regard to the length of time the
security has been held. Accordingly, each fund's portfolio turnover rate may be
substantial.

The fund managers intend to purchase a given security whenever they believe it
will contribute to the stated objective of a particular fund. In order to
achieve each fund's investment objective, the fund managers may sell a given
security, regardless of the length of time it has been held in the portfolio,
and regardless of the gain or loss realized on the sale. The managers may sell a
portfolio security if they believe that the security is not fulfilling its
purpose because, among other things, it did not live up to the managers'
expectations, because it may be replaced with another security holding greater
promise, because it has reached its optimum potential, because of a change in
the circumstances of a particular company or industry or in general economic
conditions, or because of some combination of such reasons.

When a general decline in security prices is anticipated, the funds may decrease
or eliminate entirely their equity positions and increase their cash positions,
and when a general rise in price levels is anticipated, the funds may increase
their equity positions and decrease their cash positions. However, it should be
expected that the funds will, under most circumstances, be essentially fully
invested in equity securities.

Because investment decisions are based on a particular security's anticipated
contribution to a fund's investment objective, the managers believe that the
rate of portfolio turnover is irrelevant when they determine that a change is
required to pursue the fund's investment. As a result, a fund's annual portfolio
turnover rate cannot be anticipated and may be higher than that of other mutual
funds with similar investment objectives. Higher turnover would generate
correspondingly greater brokerage commissions, which is a cost the funds pay
directly. Portfolio turnover also may affect the character of capital gains
realized and distributed by the fund, if any, since short-term capital gains are
taxable as ordinary income.

Because the managers do not take portfolio turnover rate into account in making
investment decisions, (1) the managers have no intention of maintaining any
particular rate of portfolio turnover, whether high or low, and (2) the
portfolio turnover rates in the past should not be considered as representative
of the rates that will be attained in the future.

For Global Growth, the higher portfolio turnover rate for 2001 resulted from
increased trading due to our efforts to find stocks that consistently
demonstrate the acceleration characteristics we seek, which proved difficult in
the prevailing market and global economic environment. This, combined with
increased stock price volatility, were the reasons for the uncharacteristically
high turnover rate in 2001.

For International Growth, events that occurred in 2001 created significant
challenges. For example, the extreme volatility in the markets in recent months
has been dramatic, causing us to trade more frequently than is typical. In
addition, the collapse of corporate earnings has made it increasingly difficult
to find stocks that consistently demonstrated the characteristics we seek, which
also resulted in more frequent trading. Due to these factors, portfolio turnover
has been uncharacteristically high.

For International Discovery, the higher portfolio turnover rate for 2001
resulted from efforts to improve the fund's performance, which included
replacing underperforming stocks and increasing the fund's diversification
across a broader range of industries. As a result, a greater number of stocks
were sold and purchased during 2001 than has been the fund's historical
practice.

For Emerging Markets, the increased portfolio turnover rate for 2001 is
principally due to the increase in volatility of the asset class and, more
significantly, the large investment cash flows of the fund.

For Technology, the lower portfolio turnover rate for 2002 can be attributed to
a decrease in security selection opportunities that satisfied the fund's
investment criteria.


18


MANAGEMENT

The individuals listed below serve as directors or officers of the funds. Each
director serves until his or her successor is duly elected and qualified or
until he or she retires. Mandatory retirement age for independent directors is
75. Those listed as interested directors are "interested" primarily by virtue of
their engagement as officers of American Century Companies, Inc. (ACC) or its
wholly-owned subsidiaries, including the funds' investment adviser, American
Century Investment Management, Inc. (ACIM); the funds' principal underwriter,
American Century Investment Services, Inc. (ACIS); and the funds' transfer
agent, American Century Services Corporation (ACSC).

The other directors, (more than two-thirds of the total number) are independent;
that is, they are not employees or officers of, and have no financial interest
in, ACC or any of its wholly-owned subsidiaries, including ACIM, ACIS and ACSC.


All persons named as officers of the funds also serve in similar capacities for
other funds advised by ACIM. Only officers with policy-making functions are
listed. No officer is compensated for his or her service as an officer of the
funds. The listed officers are interested persons of the funds and are appointed
or re-appointed on an annual basis.

                                                                                      Number of
                                                                                      Portfolios
                                                                                      in Fund
                            Position(s)   Length                                      Complex       Other
                            Held          of Time                                     Overseen      Directorships
                            with          Served      Principal Occupation(s)         by            Held by
Name, Address (Age)         Fund          (years)     During Past 5 Years             Director      Director
-----------------------------------------------------------------------------------------------------------------
Interested Directors
-----------------------------------------------------------------------------------------------------------------
James E. Stowers, Jr.(1)    Director,     44          Chairman, Director and          39            None
4500 Main Street            Chairman                  controlling shareholder, ACC
Kansas City, MO 64111       of the                    Chairman , ACSC, ACIS and
(79)                        Board                     other ACC subsidiaries
                                                      Director, ACIM, ACSC and
                                                      other ACC subsidiaries
-----------------------------------------------------------------------------------------------------------------
James E. Stowers III(1)     Director,     12          Co-Chairman, ACC                39            None
4500 Main Street            Chairman                  (September 2000 to present)
Kansas City, MO 64111       of the                    Chief Executive Officer, ACC
(44)                        Board                     (June 1996 to September 2000)
                                                      Director, ACC, ACIM, ACSC
                                                      and other ACC subsidiaries
                                                      President, ACC
                                                      (January 1995 to June 1997)
                                                      President, ACIM and ACSC
                                                      (April 1993 to August 1997)
-----------------------------------------------------------------------------------------------------------------
Independent Directors
-----------------------------------------------------------------------------------------------------------------
Thomas A. Brown             Director      22          Strategic Account               39            None
4500 Main Street                                      Implementation Manager,
Kansas City, MO 64111                                 Applied Industrial
(63)                                                  Technologies, Inc.,
                                                      a corporation engaged in
                                                      the sale of bearings and
                                                      power transmission products
-----------------------------------------------------------------------------------------------------------------


(1) James E. Stowers, Jr. is the father of James E. Stowers III.


                                                                            19



                                                                                   Number of
                                                                                   Portfolios
                                                                                   in Fund
                          Position(s)     Length                                   Complex      Other
                          Held            of Time                                  Overseen     Directorships
                          with            Served    Principal Occupation(s)        by           Held by
Name, Address (Age)       Fund            (years)   During Past 5 Years            Director     Director
--------------------------------------------------------------------------------------------------------------------
Robert W. Doering, M.D.   Director        1         Retired, formerly a            39           None
4500 Main Street          Emeritus(1)               general surgeon
Kansas City, MO 64111
(70)
--------------------------------------------------------------------------------------------------------------------
Andrea C. Hall, Ph.D.     Director        5         Senior Vice President,         39           Director, Midwest
4500 Main Street                                    Midwest Research Institute                  Research Institute
Kansas City, MO 64111
(58)
--------------------------------------------------------------------------------------------------------------------
D.D. (Del) Hock           Director        6         Retired, formerly Chairman,    39           Director, Allied
4500 Main Street                                    Public Service Company                      Motion Technologies,
Kansas City, MO 64111                               of Colorado                                 Inc. and J.D.
(68)                                                                                            Edwards & Company
--------------------------------------------------------------------------------------------------------------------
Donald H. Pratt           Director,       7         Chairman,                      39           Director, Butler
4500 Main Street          Vice                      Western Investments, Inc.                   Manufacturing
Kansas City, MO 64111     Chairman                  Chairman of the Board,                      Company
(65)                      of the                    Butler Manufacturing                        Director, Atlas-.
                          Board                     Company                                     Copco, North
                                                                                                America Inc
--------------------------------------------------------------------------------------------------------------------
Gale E. Sayers            Director        2         President, Chief Executive     39           None
4500 Main Street                                    Officer and Founder,
Kansas City, MO 64111                               Sayers Computer Source
(60)
--------------------------------------------------------------------------------------------------------------------
M. Jeannine Strandjord    Director        8         Senior Vice President,         39           Director, DST
4500 Main Street                                    Long Distance Finance -                     Systems, Inc.
Kansas City, MO 64111                               Global Markets Group
(57)                                                Sprint Corporation
--------------------------------------------------------------------------------------------------------------------
Timothy S. Webster        Director        1         President and Chief            39           None
4500 Main Street                                    Executive Officer,
Kansas City, MO 64111                               American Italian Pasta
(41)                                                Company
--------------------------------------------------------------------------------------------------------------------
Officers
--------------------------------------------------------------------------------------------------------------------
William M. Lyons          President       2         Chief Executive Officer, ACC   Not          Not
4500 Main St.                                       and other ACC subsidiaries     applicable   applicable
Kansas City, MO 64111                               (September 2000 to present)
(47)                                                President, ACC
                                                    (June 1997 to present)
                                                    President, ACIM
                                                    (September 2002 to present)
                                                    President, ACIS
                                                    (July 2003 to present)
                                                    Chief Operating Officer, ACC
                                                    (June 1996 to September 2000)
                                                    Also serves as: Executive Vice
                                                    President, ACSC and other
                                                    ACC subsidiaries
--------------------------------------------------------------------------------------------------------------------

(1) Dr. Robert Doering resigned as a full-time director, effective November 5,
    2001, after serving in such capacity for 33 years. Dr. Doering continues to
    serve the board in an advisory capacity. His position as Director Emeritus
    is an advisory position and involves attendance at one board meeting per
    year to review prior year-end results for the funds. He receives all regular
    board communications, including monthly mailings, industry newsletters,
    email communications, and company information, but not quarterly board and
    committee materials relating to meetings that he does not attend. Dr.
    Doering is not a director or a member of the board and has no voting power
    relating to fund operations. He is not an interested person of the funds or
    ACIM. He receives an annual stipend of $2,500 for his services.



20



                                                                                   Number of
                                                                                   Portfolios
                                                                                   in Fund
                         Position(s)   Length                                      Complex      Other
                         Held          of Time                                     Overseen     Directorships
                         with          Served      Principal Occupation(s)         by           Held by
Name, Address (Age)      Fund          (years)     During Past 5 Years             Director     Director
-------------------------------------------------------------------------------------------------------------

Robert T. Jackson        Executive     7           Chief Administrative Officer,   Not          Not
4500 Main St.            Vice                      ACC (August 1997 to present)    applicable   applicable
Kansas City, MO 64111    President                 Chief Financial Officer, ACC
(57)                                               (August 1997 to October 2002)
                                                   President, ACSC
                                                   (January 1999 to present)
                                                   Executive Vice President,
                                                   ACC (May 1995 to present)
                                                   Also serves as: Executive
                                                   Vice President and Chief
                                                   Financial Officer, ACIM, ACIS
                                                   and other ACC subsidiaries,
                                                   and Treasurer of ACIM
-------------------------------------------------------------------------------------------------------------

Maryanne Roepke, CPA     Senior        2           Senior Vice President and       Not          Not
4500 Main St.            Vice                      Assistant Treasurer, ACSC       applicable   applicable
Kansas City, MO 64111    President,
(47)                     Treasurer
                         and Chief
                         Accounting
                         Officer
-------------------------------------------------------------------------------------------------------------

David C. Tucker          Senior        2           Senior Vice President, ACIM,    Not          Not
4500 Main St.            Vice                      ACIS, ACSC and other ACC        applicable   applicable
Kansas City, MO 64111    President                 subsidiaries
(45)                     and                       (June 1998 to present)
                         General                   General Counsel, ACC, ACIM,
                         Counsel                   ACIS, ACSC and other
                                                   ACC subsidiaries
                                                   (June 1998 to present)
-------------------------------------------------------------------------------------------------------------

Robert Leach             Controller    5           Vice President, ACSC            Not          Not
4500 Main St.                                      February 2000 to present)       applicable   applicable
Kansas City, MO 64111                              Controller-Fund Accounting,
(37)                                               ACSC
-------------------------------------------------------------------------------------------------------------

Jon Zindel               Tax Officer   5           Vice President, Corporate Tax,  Not          Not
4500 Main St.                                      ACSC (April 1998 to present)    applicable   applicable
Kansas City, MO 64111                              Vice President, ACIM, ACIS and
(36)                                               other ACC subsidiaries
                                                   (April 1999 to present)
                                                   President, American Century
                                                   Employee Benefit Services, Inc.
                                                   (January 2000 to December 2000)
                                                   Treasurer, American Century
                                                   Employee Benefit Services, Inc.
                                                   (December 2000 to present)
                                                   Treasurer, American Century
                                                   Ventures, Inc.
                                                   (December 1999 to present)
                                                   Controller, ACSC
                                                   (July 1996 to April 1998)
-------------------------------------------------------------------------------------------------------------



                                                                            21


On December 23, 1999, American Century Services Corporation (ACSC) entered into
an agreement with DST Systems, Inc. (DST) under which DST would provide back
office software for transfer agency services provided by ACSC (the Agreement).
For its software, ACSC pays DST fees based in part on the number of accounts and
the number and type of transactions processed for those accounts. Through
December 31, 2002, DST received $29,967,576 in fees from ACSC. DST's revenue for
the calendar year ended December 31, 2002 was approximately $2.38 billion.


Ms. Strandjord is a director of DST and a holder of 26,491 shares and possesses
options to acquire an additional 55,890 shares of DST common stock, the sum of
which is less than one percent (1%) of the shares outstanding. Because of her
official duties as a director of DST, she may be deemed to have an "indirect
interest" in the Agreement. However, the Board of Directors of the funds was not
required to nor did it approve or disapprove the Agreement since the provision
of the services covered by the Agreement is within the discretion of ACSC. DST
was chosen by ACSC for its industry-leading role in providing cost-effective
back office support for mutual fund service providers such as ACSC. DST is the
largest mutual fund transfer agent, servicing more than 75 million mutual fund
accounts on its shareholder recordkeeping system. Ms. Strandjord's role as a
director of DST was not considered by ACSC; she was not involved in any way with
the negotiations between ACSC and DST; and her status as a director of either
DST or the funds was not a factor in the negotiations. The Board of Directors of
the funds and Bryan Cave LLP, counsel to the independent directors of the funds,
have concluded that the existence of this Agreement does not impair Ms.
Strandjord's ability to serve as an independent director under the Investment
Company Act.


THE BOARD OF DIRECTORS

The Board of Directors oversees the management of the funds and meets at least
quarterly to review reports about fund operations. The board has the authority
to manage the business of the funds on behalf of their investors, and it has all
powers necessary or convenient to carry out that responsibility. Consequently,
the directors may adopt bylaws providing for the regulation and management of
the affairs of the funds and may amend and repeal them to the extent that such
bylaws do not reserve that right to the funds' investors. They may fill
vacancies in or reduce the number of board members, and may elect and remove
such officers and appoint and terminate such agents as they consider
appropriate. They may appoint from their own number and establish and terminate
one or more committees consisting of two or more directors who may exercise the
powers and authority of the board to the extent that the directors determine.
They may, in general, delegate such authority as they consider desirable to any
officer of the funds, to any committee of the board and to any agent or employee
of the funds or to any custodian, transfer or investor servicing agent, or
principal underwriter. Any determination as to what is in the interests of the
funds made by the directors in good faith shall be conclusive.

Board Review of Investment Management Contracts

The Board of Directors oversees each fund's management and performance on a
continuous basis, and the board determines annually whether to approve and renew
the fund's investment management agreement. ACIM provides the board with
monthly, quarterly, and annual analyses of ACIM's performance in the following
areas:

*  Investment performance of the funds (short-, medium- and long-term);
*  Management of brokerage commission and trading costs [equity funds only];
*  Shareholder services provided;


22


*  Compliance with investment restrictions; and

*  Fund accounting services provided (including the valuation of portfolio
   securities);

Leaders of each fund's portfolio management team meet with the board
periodically to discuss the management and performance of the fund.

When considering whether to renew an investment advisory contract, the board
examines several factors, but does not identify any particular factor as
controlling their decision. Some of the factors considered by the board include:
the nature, extent, and quality of the advisory services provided as well as
other material facts, such as the investment performance of the fund's assets
managed by the adviser and the fair market value of the services provided. To
assess these factors, the board reviews both ACIM's performance and that of its
peers, as reported by independent gathering services such as Lipper Analytical
Services (for fund performance and expenses) and National Quality Review (for
shareholder services).

Additional information is provided to the board detailing other sources of
revenue to ACIM or its affiliates from its relationship with the fund and
intangible or "fall-out" benefits that accrue to the adviser and its affiliates,
if relevant, and the adviser's control of the investment expenses of the fund,
such as transaction costs, including ways in which portfolio transactions for
the fund are conducted and brokers are selected.

The board also reviews the investment performance of each fund compared with a
peer group of funds and an appropriate index or combination of indexes, in
addition to a comparative analysis of the total expense ratios of, and advisory
fees paid by, similar funds.

The board considered the level of ACIM's profits in respect to the management of
the American Century family of funds, including the profitability of managing
each fund. The board conducted an extensive review of ACIM's methodology in
allocating costs to the management of each fund. The board concluded that the
cost allocation methodology employed by ACIM has a reasonable basis and is
appropriate in light of all of the circumstances. They considered the profits
realized by ACIM in connection with the operation of each fund and whether the
amount of profit is a fair entrepreneurial profit for the management of each
fund. The board also considered ACIM's profit margins in comparison with
available industry data, both accounting for and excluding marketing expenses.

Based on their evaluation of all material factors assisted by the advice of
independent legal counsel, the board, including the independent directors,
concluded that the existing management fee structures are fair and reasonable
and that the existing investment management contracts should be continued.


                                                                            23


Committees

The board has four standing committees to oversee specific functions of the
funds' operations. Information about these committees appears in the table
below. The director first named serves as chairman of the committee.

                                                                                                     Number of
                                                                                                     Meetings Held
                                                                                                     During Last
Committee         Members                   Function                                                 Fiscal Year
------------------------------------------------------------------------------------------------------------------
Executive         James E. Stowers, Jr.     The Executive Committee performs the functions           0
                  James E. Stowers III      of the Board of Directors between Board meetings,
                  Donald H. Pratt           subject to the limitations on its power set out in
                                            the Maryland General Corporation Law, and except
                                            for matters required by the Investment Company
                                            Act to be acted upon by the whole Board.
------------------------------------------------------------------------------------------------------------------
Compliance        Andrea C. Hall, PhD       The Compliance and Shareholder Communications            4
and Shareholder   Thomas A. Brown           Committee reviews the results of the funds'
Communications    Gale E. Sayers            compliance testing program, reviews quarterly
                  Timothy S. Webster        reports from the Communications advisor
                                            to the Board regarding various compliance matters
                                            and monitors the implementation of the funds'
                                            Code of Ethics, including any violations.
------------------------------------------------------------------------------------------------------------------
Audit             D.D. (Del) Hock           The Audit Committee recommends the engagement            4
                  Donald H. Pratt           of the funds' independent auditors and oversees its
                  Jeannine Strandjord       activities. The Committee receives reports from the
                                            advisor's Internal Audit Department, which is
                                            accountable to the Committee. The Committee also
                                            receives reporting about compliance matters
                                            affecting the funds.
------------------------------------------------------------------------------------------------------------------
Governance        Donald H. Pratt           The Board Governance Committee primarily considers       0
                  Jeannine Strandjord       and recommends individuals for nomination as directors.
                  Thomas A. Brown           The names of potential director candidates are
                                            drawn from a number of sources, including
                                            recommendations from members of the Board,
                                            management and shareholders. This committee also
                                            reviews and makes recommendations to the Board
                                            with respect to the composition of Board committees
                                            and other Board-related matters, including its
                                            organization, size, composition, responsibilities,
                                            functions and compensation. The Governance Committee
                                            does not currently have a policy regarding whether it will
                                            consider nominees recommended by shareholders.
------------------------------------------------------------------------------------------------------------------

Compensation of Directors

The directors serve as directors for five American Century investment companies.
Each director who is not an interested person as defined in the Investment
Company Act receives compensation for service as a member of the Board of all
five such companies based on a schedule that takes into account the number of
meetings attended and the assets of the funds for which the meetings are held.
These fees and expenses are divided among the five investment companies based,
in part, upon their relative net assets. Under the terms of the management
agreement with the advisor, the funds are responsible for paying such fees and
expenses.

The following table shows the aggregate compensation paid by the funds for the
periods indicated and by the five investment companies served by this Board to
each director who is not an interested person as defined in the Investment
Company Act.


24


AGGREGATE DIRECTOR COMPENSATION FOR FISCAL YEAR ENDED NOVEMBER 30, 2002
--------------------------------------------------------------------------------------
                            Total Compensation      Total Compensation from the
Name of Director            from the Funds(1)       American Century Family of Funds(2)
--------------------------------------------------------------------------------------
Thomas A. Brown             $7,328                  $73,000
--------------------------------------------------------------------------------------
Robert W. Doering, M.D.(3)    $246                   $2,500
--------------------------------------------------------------------------------------
Andrea C. Hall, Ph.D.       $7,581                  $75,500
--------------------------------------------------------------------------------------
D.D. (Del) Hock             $7,431                  $74,000
--------------------------------------------------------------------------------------
Donald H. Pratt             $7,579                  $75,500
--------------------------------------------------------------------------------------
Gale E. Sayers              $7,229                  $72,000
--------------------------------------------------------------------------------------
M. Jeannine Strandjord      $7,227                  $72,000
--------------------------------------------------------------------------------------
Timothy S. Webster          $7,714                  $76,833
--------------------------------------------------------------------------------------

(1)  Includes compensation paid to the directors during the fiscal year ended
     November 30, 2002, and also includes amounts deferred at the election of
     the directors under the American Century Mutual Funds' Independent
     Directors' Deferred Compensation Plan.

(2)  Includes compensation paid by the five investment company members of the
     American Century family of funds served by this board. The total amount of
     deferred compensation included in the preceding table is as follows: Mr.
     Brown, $12,800; Dr. Hall, $67,000; Mr. Hock, $67,000; Mr. Pratt, $1,843;
     Mr. Sayers, $5,333 and Mr. Webster, $29,333.

(3)  Dr. Robert Doering resigned as a full-time director, effective November 5,
     2001.

The funds have adopted the American Century Mutual Funds' Independent Directors'
Deferred Compensation Plan. Under the plan, the independent directors may defer
receipt of all or any part of the fees to be paid to them for serving as
directors of the funds.

All deferred fees are credited to an account established in the name of the
directors. The amounts credited to the account then increase or decrease, as the
case may be, in accordance with the performance of one or more of the American
Century funds that are selected by the director. The account balance continues
to fluctuate in accordance with the performance of the selected fund or funds
until final payment of all amounts credited to the account. Directors are
allowed to change their designation of mutual funds from time to time.

No deferred fees are payable until such time as a director resigns, retires or
otherwise ceases to be a member of the Board of Directors. Directors may receive
deferred fee account balances either in a lump sum payment or in substantially
equal installment payments to be made over a period not to exceed 10 years. Upon
the death of a director, all remaining deferred fee account balances are paid to
the director's beneficiary or, if none, to the director's estate.

The plan is an unfunded plan and, accordingly, the funds have no obligation to
segregate assets to secure or fund the deferred fees. To date, the funds have
voluntarily funded their obligations. The rights of directors to receive their
deferred fee account balances are the same as the rights of a general unsecured
creditor of the funds. The plan may be terminated at any time by the
administrative committee of the plan. If terminated, all deferred fee account
balances will be paid in a lump sum.

No deferred fees were paid to any director under the plan during the fiscal year
ended November 30, 2002.


                                                                            25


OWNERSHIP OF FUND SHARES

The directors owned shares in the funds as of December 31, 2002, as shown in the
table below:

                                                                         NAME OF DIRECTORS
--------------------------------------------------------------------------------------------------------------------
                                                  James E.       James E.      Thomas A.    Robert W.     Andrea C
                                                Stowers, Jr.    Stowers III      Brown       Doering     Hall, Ph.D.
--------------------------------------------------------------------------------------------------------------------
Dollar Range of Equity Securities in the Funds:
  Global Growth                                       A              A             A            A             A
--------------------------------------------------------------------------------------------------------------------
  International Growth                                C              E             B            E             C
--------------------------------------------------------------------------------------------------------------------
  International Opportunities                         A              E             A            A             A
--------------------------------------------------------------------------------------------------------------------
  International Discovery                             A              E             B            E             A
--------------------------------------------------------------------------------------------------------------------
  Emerging Markets                                    A              A             B            A             A
--------------------------------------------------------------------------------------------------------------------
  Life Sciences                                       A              A             B            A             A
--------------------------------------------------------------------------------------------------------------------
  Technology                                          A              A             A            A             A
--------------------------------------------------------------------------------------------------------------------
Aggregate Dollar Range of Equity
Securities in all Registered Investment
Companies Overseen by Director in
Family of Investment Companies                        E              E             E            E             E
--------------------------------------------------------------------------------------------------------------------

Ranges: A--none, B--$1-$10,000, C--$10,001-$50,000, D--$50,001-$100,000, E--More
than $100,000

                                                                      NAME OF DIRECTORS
------------------------------------------------------------------------------------------------------------------
                                                   D.D. (Del)    Donald      Gale E.     M. Jeannine    Timothy S.
                                                      Hock      H. Pratt     Sayers      Strandjord       Webster
------------------------------------------------------------------------------------------------------------------
Dollar Range of Equity Securities in the Funds:
  Global Growth                                         A           A           A             A              A
------------------------------------------------------------------------------------------------------------------
  International Growth                                  D           A           A             A              C
------------------------------------------------------------------------------------------------------------------
  International Opportunities                           A           A           A             A              A
------------------------------------------------------------------------------------------------------------------
  International Discovery                               D           A           A             E              D
------------------------------------------------------------------------------------------------------------------
  Emerging Markets                                      A           A           A             A              B
------------------------------------------------------------------------------------------------------------------
  Life Sciences                                         A           A           A             A              B
------------------------------------------------------------------------------------------------------------------
  Technology                                            A           A           A             A              B
------------------------------------------------------------------------------------------------------------------
Aggregate Dollar Range of Equity
Securities in all Registered Investment
Companies Overseen by Director in
Family of Investment Companies                          E           E           C             E              E
------------------------------------------------------------------------------------------------------------------

Ranges: A--none, B--$1-$10,000, C--$10,001-$50,000, D--$50,001-$100,000, E--More
than $100,000

CODE OF ETHICS

The funds, their investment advisor and principal underwriter have adopted a
code of ethics under Rule 17j-1 of the Investment Company Act and the code of
ethics permits personnel subject to the code to invest in securities, including
securities that may be purchased or held by the funds, provided that they first
obtain approval from the compliance department before making such investments.


26



Proxy Voting Guidelines

The Advisor is responsible for exercising the voting rights associated with the
securities purchased and/or held by the funds. In exercising its voting
obligations, the Advisor is guided by general fiduciary principles. It must act
prudently, solely in the interest of the funds, and for the exclusive purpose of
providing benefits to them. The Advisor attempts to consider all factors of its
vote that could affect the value of the investment. The funds' Board of
Directors has approved the Advisor's Proxy Voting Guidelines to govern the
Advisor's proxy voting activities.

The Advisor and the board have agreed on certain significant contributors to
shareholder value with respect to a number of matters that are often the subject
of proxy solicitations for shareholder meetings. The Proxy Voting Guidelines
specifically address these considerations and establish a framework for the
Advisor's consideration of the vote that would be appropriate for the funds. In
particular, the Proxy Voting Guidelines outline principles and factors to be
considered in the exercise of voting authority for proposals addressing:

*  Election of Directors
*  Ratification of Selection of Auditors
*  Equity-Based Compensation Plans
*  Anti-Takeover Proposals
   *  Cumulative Voting
   *  Staggered Boards
   *  "Blank Check" Preferred Stock
   *  Elimination of Preemptive Rights
   *  Non-targeted Share Repurchase
   *  Increase in Authorized Common Stock
   *  "Supermajority" Voting Provisions or Super Voting Share Classes
   *  "Fair Price" Amendments
   *  Limiting the Right to Call Special Shareholder Meetings
   *  Poison Pills or Shareholder Rights Plans
   *  Golden Parachutes
   *  Reincorporation
   *  Confidential Voting
   *  Opting In or Out of State Takeover Laws
*  Shareholder Proposals Involving Social, Moral or Ethical Matters
*  Anti-Greenmail Proposals
*  Changes to Indemnification Provisions
*  Non-Stock Incentive Plans
*  Director Tenure
*  Directors' Stock Options Plans
*  Director Share Ownership

Finally, the Proxy Voting Guidelines establish procedures for voting of proxies
in cases in which the Advisor may have a potential conflict of interest.
Companies with which the Advisor has direct business relationships could
theoretically use these relationships to attempt to unduly influence the manner
in which American Century votes on matters for the funds. To ensure that such a
conflict of interest does not affect proxy votes cast for the funds, all
discretionary (including case-by-case) voting for these companies will be voted
in direct consultation with a committee of the independent directors of the
funds.

A copy of the Advisor's Proxy Voting Guidelines are available on the funds'
website at www.americancentury.com.



                                                                            27



THE FUNDS' PRINCIPAL SHAREHOLDERS

As of August 1, 2003, the following companies were the record owners of more
than 5% of the outstanding shares of any class of the funds:

                                                        Percentage of
Fund/Class Shareholder                                  Outstanding Shares Owned
--------------------------------------------------------------------------------
Global Growth
--------------------------------------------------------------------------------
   Investor
           Charles Schwab & Co., Inc.                      5%
           San Francisco, CA
--------------------------------------------------------------------------------
   Advisor
           Boone County National Bank                      37%
           FBO Block & Brick Co. Ret Fund
           Columbia, MO

           Charles Schwab & Co., Inc.                      26%
           San Francisco, CA

           National Financial Services LLC                 15%
           New York, NY

           Nationwide Trust Company                        11%
           Columbus, OH
--------------------------------------------------------------------------------
   Institutional
           Trustees of American Century                    48%
           Profit Sharing & 401(k) Savings Plan & Trust
           Kansas City, MO

           UMB TR American Century Services Corp.          25%
           Stock Option Surrender Plan TR
           Kansas City, MO

           UMB TR American Century Services Corp.          20%
           Stock Option Surrender Plan TR
           Kansas City, MO
--------------------------------------------------------------------------------
   C
           American Enterprise Investment Svcs             72%
           Minneapolis, MN

           MCB Trust Services Custodian                    23%
           FBO Mid-Minnesota Hot Mix Inc. 401(k)
           Denver, CO
--------------------------------------------------------------------------------
International Growth
--------------------------------------------------------------------------------
   Investor
           Charles Schwab & Co., Inc.                      11%
           San Francisco, CA
--------------------------------------------------------------------------------
   Advisor
           Nationwide Insurance Company QPVA               14%
           Columbus, OH

           Nationwide Trust Company FSB                     9%
           Columbus, OH

           State Street Bank                                8%
           FBO ADP Daily Val
           North Quincy, MA

           Charles Schwab & Co., Inc.                       8%
           San Francisco, CA

           Wells Fargo Bank NA FBO                          7%
           Fidelity National Financial 401(k) Profit Sharing Plan
           Minneapolis, MN
--------------------------------------------------------------------------------



28



                                                        Percentage of
Fund/Class Shareholder                                  Outstanding Shares Owned
--------------------------------------------------------------------------------
International Growth
--------------------------------------------------------------------------------
Institutional
           The Chase Manhattan Bank NA, Trustee            10%
           Robert Bosch Corporation New Star Plan & Trust
           New York, NY

           JP Morgan Chase Bank Trustee                     6%
           Employees Ret Plan of Bose Corp.
           (JP Morgan Chase Bank) Trust
           New York, NY
--------------------------------------------------------------------------------
   A
           Charles Schwab & Co., Inc.                      88%
           San Francisco, CA
--------------------------------------------------------------------------------
   B
           American Enterprise Investment Svcs             61%
           Minneapolis, MN

           MLPF&S Inc.                                      5%
           Jacksonville, FL
--------------------------------------------------------------------------------
   C
           Pershing LLC                                     7%
           Jersey City, NJ

           Boone County National Bank TR Assoc.             5%
           FBO Missouri Bankers
           Columbia, MO
--------------------------------------------------------------------------------
International Opportunities
--------------------------------------------------------------------------------
   Investor
           Charles Schwab & Co., Inc.                      30%
           San Francisco, CA
--------------------------------------------------------------------------------
   Institutional
           Memorial Hospital of South Bend                 65%
           South Bend, IN

           Philip A. Newbold & Jeffrey P. Costello         35%
           Trustee, Memorial Health System, Inc.,
           Employees Pension Plan
           South Bend, IN
--------------------------------------------------------------------------------
International Discovery
--------------------------------------------------------------------------------
   Investor
           Charles Schwab & Co., Inc.                      16%
           San Francisco, CA
--------------------------------------------------------------------------------
   Advisor
           Arrowhead Trust, Inc.                           41%
           San Bernardino, CA

           MCB Trust Services, Custodian,                  34%
           Lizardtech, Inc.
           Denver, CO

           La Salle Bank National Association              26%
           Chicago, IL
--------------------------------------------------------------------------------
   Institutional
           Hollowwave & Co.                                26%
           Boston, MA

           JP Morgan Chase Bank Trustee                    22%
           401(k) Savings Plan of JP Morgan
           Chase & Co. Trust
           Brooklyn, NY

           Charles Schwab & Co., Inc.                      18%
           San Francisco, CA
--------------------------------------------------------------------------------



                                                                            29


                                                        Percentage of
Fund/Class Shareholder                                  Outstanding Shares Owned
--------------------------------------------------------------------------------
International Discovery
--------------------------------------------------------------------------------
   Institutional
           Trustees of American Century                    12%
           Profit Sharing & 401(k) Savings Plan & Trust
           Kansas City, MO


           US Bank NA, Trustee                              9%
           Ceridian Corporation Master Trust
           Milwaukee, WI
--------------------------------------------------------------------------------
Emerging Markets
--------------------------------------------------------------------------------
   Investor
           Charles Schwab & Co., Inc.                     16%
           San Francisco, CA

           American Century Investment Management, Inc.    8%
           Kansas City, MO
--------------------------------------------------------------------------------
   Advisor
           Hubco Regions Financial Corp.                  29%
           Birmingham, AL

           Charles Schwab & Co., Inc.                     23%
           San Francisco, CA

           Suntrust Bank, Trustee FBO                     12%
           Espirito Santo Bank 401k Plan
           Englewood, CO

           Suntrust Bank, Trust, FBO                      10%
           American Magnetics, Inc.
           401k Profit Sharing Plan Trust
           Englewood, CO

           Suntrust Bank Trustee                           6%
           FBO ALPA Deferred Compensation
           Plan for Certain Senior Employees
           Englewood, CO
--------------------------------------------------------------------------------
   Institutional
           Fidelity FIIOC Trustee                         33%
           Covington, KY

           1999 Irrevocable US Annuity & Gift Trust       24%
           St. Louis, MO

           Charles Schwab & Co., Inc.                     14%
           San Francisco, CA

           Trustees of American Century                   10%
           Profit Sharing & 401(k) Savings Plan & Trust
           Kansas City, MO

           The Chase Manhattan Bank NA TR                  9%
           Robert Bosch Corporation
           New Star Plan & Trust
           New York, NY
--------------------------------------------------------------------------------
   C
           Mobank & Co EB                                 97%
           Monroe, MI
--------------------------------------------------------------------------------
Life Sciences
--------------------------------------------------------------------------------
   Investor
           Charles Schwab & Co., Inc.                     13%
           San Francisco, CA
--------------------------------------------------------------------------------
   Advisor
           MCB Trust Services Custodian                   67%
           Liquidhub, Inc.
           Denver, CO
--------------------------------------------------------------------------------



30



                                                        Percentage of
Fund/Class Shareholder                                  Outstanding Shares Owned
--------------------------------------------------------------------------------
Life Sciences
--------------------------------------------------------------------------------
   Advisor
           UMBSC & CO                                      11%
           FBO Kathryn E. Black IRA
           Kansas City, MO

           UMBSC & CO                                      10%
           FBO B Jeanmarie Amiri IRA R/0
           Kansas City, MO

           UMBSC & CO                                       5%
           FBO Alvin Walker
           Kansas City, MO
--------------------------------------------------------------------------------
   Institutional
           Trustees of American Century                    69%
           Profit Sharing & 401K
           Savings Plan & Trust
           Kansas City, MO

           UMB Trustee                                     25%
           Executive Deferred Compensation
           Plan & Trust
           Kansas City, MO
--------------------------------------------------------------------------------
   C
           Legg Mason Wood Walker, Inc.                    72%
           Baltimore, MD

           American Enterprise Investment Svcs             28%
           Minneapolis, MN
--------------------------------------------------------------------------------
Technology
--------------------------------------------------------------------------------
   Investor
           Charles Schwab & Co., Inc.                       8%
           San Francisco, CA
--------------------------------------------------------------------------------
   Advisor
           National Financial Services LLC                 78%
           New York, NY

           Frontier Trust Company TTEE                     18%
           FBO Browne Blebotte Wilson & Horn
           Fargo, ND
--------------------------------------------------------------------------------
   Institutional
           Trustees of American Century                    65%
           Profit Sharing & 401K
           Savings Plan & Trust
           Kansas City, MO

           American Century Investment                     19%
           Management, Inc.
           Kansas City, MO

           UMB Trustee American Century                     8%
           Executive Deferred
           Compensation Plan & Trust
           Kansas City, MO
--------------------------------------------------------------------------------
   C
           None
--------------------------------------------------------------------------------

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 American Century World Mutual Funds, Inc. As of
July 31, 2003, the officers and directors of the funds, as a group, owned less
than 1% of any class of a fund's outstanding shares.



                                                                           31


SERVICE PROVIDERS

The funds have no employees. To conduct the funds' day-to-day activities, the
funds have hired a number of service providers. Each service provider has a
specific function to fill on behalf of the funds that is described below.

ACIM, ACSC and ACIS are wholly owned by ACC. James E. Stowers, Jr., Chairman of
ACC, controls ACC by virtue of his ownership of a majority of its voting stock.

INVESTMENT ADVISOR

American Century Investment Management, Inc. (ACIM) serves as the investment
advisor for each of the funds. A description of the responsibilities of the
advisor appears in the Prospectuses under the heading Management.

For services provided to each fund, the advisor receives a monthly fee based on
a percentage of the average net assets of the fund. The funds (except for
International Opportunities) have a stepped fee structure, as follows:


Fund                        Class                  Percentage of Net Assets
--------------------------------------------------------------------------------
Global Growth               Investor and C         1.30% of first $1 billion
                                                   1.15% of the next $1 billion
                                                   1.05% over $2 billion
                            ----------------------------------------------------
                            Institutional          1.10% of first $1 billion
                                                   0.95% of the next $1 billion
                                                   0.85% over $2 billion
                            ----------------------------------------------------
                            Advisor                1.05% of first $1 billion
                                                   0.90% of the next $1 billion
                                                   0.80% over $2 billion
--------------------------------------------------------------------------------
International Growth        Investor, A, B, C and  1.50% of first $1 billion
                                      R            1.20% of the next $1 billion
                                                   1.10% over $2 billion
                            ----------------------------------------------------
                            Institutional          1.30 of first $1 billion
                                                   1.00% of the next $1 billion
                                                   0.90% over $2 billion
                            ----------------------------------------------------
                            Advisor                1.25% of first $1 billion
                                                   0.95% of the next $1 billion
                                                   0.85% over $2 billion
--------------------------------------------------------------------------------
International Opportunities Investor               2.00%
                            ----------------------------------------------------
                            Institutional          1.80%
--------------------------------------------------------------------------------
International Discovery     Investor               1.75% of first $500 million
                                                   1.40% of the next $500 million
                                                   1.20% over $1 billion
                            ----------------------------------------------------
                            Institutional          1.55% of first $500 million
                                                   1.20% of the next $500 million
                                                   1.00% over $1 billion
                            ----------------------------------------------------
                            Advisor                1.50% of first $500 million
                                                   1.15% of the next $500 million
                                                   0.95% over $1 billion
--------------------------------------------------------------------------------



32



Fund                        Class              Percentage of Net Assets
--------------------------------------------------------------------------------
Emerging Markets            Investor and C     2.00% of first $500 million
                                               1.50% of the next $500 million
                                               1.25% over $1 billion
                            ----------------------------------------------------
                            Institutional      1.80% of first $500 million
                                               1.30% of the next $500 million
                                               1.05% over $1 billion
                            ----------------------------------------------------
                            Advisor            1.75% of first $500 million
                                               1.25% of the next $500 million
                                               1.00% over $1 billion
--------------------------------------------------------------------------------
Life Sciences               Investor and C     1.50% of first $1 billion
                                               1.30% over $1 billion
                            ----------------------------------------------------
                            Institutional      1.30% of first $1 billion
                                               1.10% over $1 billion
                            ----------------------------------------------------
                            Advisor            1.25% of first $1 billion
                                               1.05% over $1 billion
--------------------------------------------------------------------------------
Technology                  Investor and C     1.50% of first $1 billion
                                               1.30% over $1 billion
                            ----------------------------------------------------
                            Institutional      1.30% of first $1 billion
                                               1.10% over $1 billion
                            ----------------------------------------------------
                            Advisor            1.25% of first $1 billion
                                               1.05% over $1 billion
--------------------------------------------------------------------------------


On the first business day of each month, the funds pay a management fee to the
advisor for the previous month at the specified rate. The fee for the previous
month is calculated by multiplying the applicable fee for the fund by the
aggregate average daily closing value of a fund's net assets during the previous
month. This number is then multiplied by a fraction, the numerator of which is
the number of days in the previous month and the denominator of which is 365
(366 in leap years).

The management agreement between the corporation and the advisor shall continue
in effect until the earlier of the expiration of two years from the date of its
execution or until the first meeting of fund shareholders following such
execution and for as long thereafter as its continuance is specifically approved
at least annually by

(1)  the funds' Board of Directors, or a majority of outstanding shareholder
     votes (as defined in the Investment Company Act) and

(2)  the vote of a majority of the directors of the funds who are not parties to
     the agreement or interested persons of the advisor, cast in person at a
     meeting called for the purpose of voting on such approval.

The management agreement states that the funds' Board of Directors or a majority
of outstanding shareholder votes may terminate the management agreement at any
time without payment of any penalty on 60 days' written notice to the advisor.
The management agreement shall be automatically terminated if it is assigned.

The management agreement states that the advisor shall not be liable to the
funds or their shareholders for anything other than willful misfeasance, bad
faith, gross negligence or reckless disregard of its obligations and duties.

The management agreement also provides that the advisor and its officers,
directors and employees may engage in other business, render services to others,
and devote time and attention to any other business whether of a similar or
dissimilar nature.


                                                                            33


Certain investments may be appropriate for the funds and also for other clients
advised by the advisor. Investment decisions for the funds and other clients are
made with a view to achieving their respective investment objectives after
consideration of such factors as their current holdings, availability of cash
for investment and the size of their investment generally. A particular security
may be bought or sold for only one client or fund, or in different amounts and
at different times for more than one but less than all clients or funds. In
addition, purchases or sales of the same security may be made for two or more
clients or funds on the same date. Such transactions will be allocated among
clients in a manner believed by the advisor to be equitable to each. In some
cases this procedure could have an adverse effect on the price or amount of the
securities purchased or sold by a fund.

The advisor may aggregate purchase and sale orders of the funds with purchase
and sale orders of its other clients when the advisor believes that such
aggregation provides the best execution for the funds. The Board of Directors
has approved the policy of the advisor with respect to the aggregation of
portfolio transactions. Where portfolio transactions have been aggregated, the
funds participate at the average share price for all transactions in that
security on a given day and allocate transaction costs on a pro rata basis. The
advisor will not aggregate portfolio transactions of the funds unless it
believes such aggregation is consistent with its duty to seek best execution on
behalf of the funds and the terms of the management agreement. The advisor
receives no additional compensation or remuneration as a result of such
aggregation.

Unified management fees incurred by each fund by class for the fiscal periods
ended November 30, 2002, 2001 and 2000, are indicated in the following table.
New classes of the funds did not pay anything during these periods.

UNIFIED MANAGEMENT FEES
-----------------------------------------------------------------------------


Fund/Class                        2002               2001             2000
-----------------------------------------------------------------------------
Global Growth
    Investor                   $3,187,939         $4,409,433       $5,741,938
-----------------------------------------------------------------------------
    Advisor                        $6,611            $14,035           $4,080
-----------------------------------------------------------------------------
    Institutional                 $39,684            $50,816          $20,132
-----------------------------------------------------------------------------
    C                                $202(1)             N/A              N/A
-----------------------------------------------------------------------------
International Growth
    Investor                  $36,212,774        $47,929,083      $57,685,724
-----------------------------------------------------------------------------
    Advisor                    $2,067,549         $1,984,980       $1,278,364
-----------------------------------------------------------------------------
    Institutional              $3,208,175         $3,637,748       $3,276,463
-----------------------------------------------------------------------------
    C                              $8,983(1)            $380              N/A
-----------------------------------------------------------------------------
International Opportunities
    Investor                     $342,956            $53,982(2)           N/A
-----------------------------------------------------------------------------
    Institutional(3)                  N/A                N/A              N/A
-----------------------------------------------------------------------------
International Discovery
    Investor                  $14,754,334        $18,537,181      $27,823,372
-----------------------------------------------------------------------------
    Advisor                        $2,938             $4,756           $5,540
-----------------------------------------------------------------------------
    Institutional              $2,256,919         $2,965,328       $3,568,981
-----------------------------------------------------------------------------


(1)  The inception dates for the C Class are: Global Growth, March 1, 2002;
     and International Growth, June 4, 2001.

(2)  The inception date for the Investor Class is June 1, 2001.

(3)  The class had no assets as of the end of the most recent fiscal year.
     Therefore, the class paid no management fees.


34



UNIFIED MANAGEMENT FEES
--------------------------------------------------------------------------
Fund/Class                  2002               2001              2000
--------------------------------------------------------------------------
Emerging Markets
    Investor            $1,983,488          $1,703,333        $2,439,641
--------------------------------------------------------------------------
    Advisor                $22,870              $7,337            $6,159
--------------------------------------------------------------------------
    Institutional         $353,006            $369,360          $558,475
--------------------------------------------------------------------------
    C                         $675(1)              N/A               N/A
--------------------------------------------------------------------------
Life Sciences
    Investor            $2,897,187          $3,461,223        $1,251,383
--------------------------------------------------------------------------
    Advisor                   $281                $429(2)            N/A
--------------------------------------------------------------------------
    Institutional          $51,125             $49,947(3)            N/A
--------------------------------------------------------------------------
    C(1)                       $89                N/A                N/A
--------------------------------------------------------------------------
Technology
    Investor            $2,150,160          $2,875,138        $1,494,281
--------------------------------------------------------------------------
    Advisor                   $244                $502(2)            N/A
--------------------------------------------------------------------------
    Institutional         $112,155            $118,407(3)            N/A
--------------------------------------------------------------------------
    C(4)                       N/A                 N/A               N/A
--------------------------------------------------------------------------


(1)  The inception dates for the C Class are: Emerging Markets,
     December 18, 2001; and Life Sciences, November 29, 2001.

(2)  The inception dates for the Advisor Class are: Life Sciences, November 14,
     2000; and Technology, June 30, 2000.

(3)  The inception dates for the Institutional Class are: Life Sciences, July
     17, 2000; and Technology, July 14, 2000.

(4)  The class had no assets as of the end of the most recent fiscal year.
     Therefore, the class paid no management fees.

TRANSFER AGENT AND ADMINISTRATOR

American Century Services Corporation, 4500 Main Street, Kansas City, Missouri
64111, acts as transfer agent and dividend-paying agent for the funds. It
provides physical facilities, computer hardware and software and personnel, for
the day-to-day administration of the funds and the advisor. The advisor pays
ACSC for these services.

From time to time, special services may be offered to shareholders who maintain
higher share balances in our family of funds. These services may include the
waiver of minimum investment requirements, expedited confirmation of shareholder
transactions, newsletters and a team of personal representatives. Any expenses
associated with these special  services will be paid by the advisor.

DISTRIBUTOR

The funds' shares are distributed by American Century Investment Services, Inc.,
a registered broker-dealer. The distributor is a wholly owned subsidiary of ACC
and its principal business address is 4500 Main Street, Kansas City, Missouri
64111.

The distributor is the principal underwriter of the funds' shares. The
distributor makes a continuous, best efforts underwriting of the funds' shares.
This means the distributor has no liability for unsold shares.

Certain financial intermediaries unaffiliated with the distributor or the funds
may perform various administrative and shareholder services for their clients
who are invested in the funds. These services may include assisting with fund
purchases, redemptions and exchanges, distributing information about the funds
and their performance, preparing and distributing client account statements, and
other administrative and shareholder services, and would otherwise be provided
by the distributor or its affiliates. The distributor may pay fees out of its
own resources to such financial intermediaries for providing these services.


                                                                            35


OTHER SERVICE PROVIDERS

CUSTODIAN BANKS

J.P. Morgan Chase and Co., 770 Broadway, 10th Floor, New York, New York
10003-9598, and Commerce Bank, N.A., 1000 Walnut, Kansas City, Missouri 64105,
each serves as custodian of the funds' assets. The custodians take no part in
determining the investment policies of the funds or in deciding which securities
are purchased or sold by the funds. The funds, however, may invest in certain
obligations of the custodians and may purchase or sell certain securities from
or to the custodians.

INDEPENDENT AUDITORS


Deloitte & Touche LLP is the independent auditors of the funds. The address of
Deloitte & Touche LLP is 1010 Grand Boulevard, Kansas City, Missouri 64106. As
the independent auditors of the funds, Deloitte & Touche LLP provides services
including:


(1)  auditing the annual financial statements for each fund,
(2)  assisting and consulting in connection with SEC filings and
(3)  reviewing the annual federal income tax return filed for each fund.

BROKERAGE ALLOCATION

Under the management agreement between the funds and the advisor, the advisor
has the responsibility of selecting brokers and dealers to execute portfolio
transactions. The funds' policy is to secure the most favorable prices and
execution of orders on its portfolio transactions. So long as that policy is
met, the advisor may take into consideration the factors discussed below when
selecting brokers.

The advisor receives statistical and other information and services, including
research, without cost from brokers and dealers. The advisor evaluates such
information and services, together with all other information that it may have,
in supervising and managing the investments of the funds. Because such
information and services may vary in amount, quality and reliability, their
influence in selecting brokers varies from none to very substantial. The advisor
intends to continue to place some of the funds' brokerage business with one or
more brokers who provide information and services. Such information and services
will be in addition to and not in lieu of services required to be performed by
the advisor. The advisor does not utilize brokers that provide such information
and services for the purpose of reducing the expense of providing required
services to the funds.

In the years ended November 30, 2002, 2001 and 2000, the brokerage commissions
of each fund were:

Fund                                  2002             2001           2000
-----------------------------------------------------------------------------
Global Growth                      $1,831,436       $2,049,860     $1,318,821
-----------------------------------------------------------------------------
International Growth              $24,621,894      $24,507,458    $17,386,139
-----------------------------------------------------------------------------
International Opportunities(1)       $251,581          $51,577            N/A
-----------------------------------------------------------------------------
International Discovery           $10,287,829      $10,869,763     $9,769,805
-----------------------------------------------------------------------------
Emerging Markets                   $3,040,810       $2,175,405       $814,884
-----------------------------------------------------------------------------
Life Sciences                        $616,359         $563,813       $220,389
-----------------------------------------------------------------------------
Technology                           $639,974         $725,770       $186,153
-----------------------------------------------------------------------------

(1)  Commenced operations June 1, 2001.


36


The brokerage commissions paid by the funds may exceed those that another broker
might have charged for effecting the same transactions, because of the value of
the brokerage and research services provided by the broker. Research services
furnished by brokers through whom the funds effect securities transactions may
be used by the advisor in servicing all of its accounts, and not all such
services may be used by the advisor in managing the portfolios of the funds.

The staff of the SEC has expressed the view that the best price and execution of
over-the-counter transactions in portfolio securities may be secured by dealing
directly with principal market makers, thereby avoiding the payment of
compensation to another broker. In certain situations, the officers of the funds
and the advisor believe that the facilities, expert personnel and technological
systems of a broker often enable the funds to secure as good a net price by
dealing with a broker instead of a principal market maker, even after payment of
the compensation to the broker. The funds regularly place their over-the-counter
transactions with principal market makers, but may also deal on a brokerage
basis when utilizing electronic trading networks or as circumstances warrant.

INFORMATION ABOUT FUND SHARES

Each of the funds named on the front of this Statement of Additional Information
is a series of shares issued by the corporation, and shares of each fund have
equal voting rights. In addition, each series (or fund) may be divided into
separate classes. See Multiple Class Structure, which follows. Additional funds
and classes may be added without a shareholder vote.

Each fund votes separately on matters affecting that fund exclusively. Voting
rights are not cumulative, so investors holding more than 50% of the
corporation's (all funds') outstanding shares may be able to elect a Board of
Directors. The corporation undertakes dollar-based voting, meaning that the
number of votes a shareholder is entitled to is based upon the dollar amount of
your investment. The election of directors is determined by the votes received
from all the corporation's shareholders without regard to whether a majority of
shares of any one fund voted in favor of a particular nominee or all nominees as
a group.

The assets belonging to each series of shares are held separately by the
custodian and the shares of each series represent a beneficial interest in the
principal, earnings and profit (or losses) of investment and other assets held
for each series. Your rights as a shareholder are the same for all series of
securities unless otherwise stated. Within their respective series, all shares
have equal redemption rights. Each share, when issued, is fully paid and
non-assessable.

In the event of complete liquidation or dissolution of the funds, shareholders
of each series or class of shares will be entitled to receive, pro rata, all of
the assets less the liabilities of that series or class.

Each shareholder has rights to dividends and distributions declared by the fund
he or she owns and to the net assets of such fund upon its liquidation or
dissolution proportionate to his or her share ownership interest in the fund.

MULTIPLE CLASS STRUCTURE


The corporation's Board of Directors has adopted a multiple class plan (the
Multiclass Plan) pursuant to Rule 18f-3 adopted by the SEC. The plan is
described in the prospectus of any fund that offers more than one class.
Pursuant to such plan, the funds may issue up to seven classes of shares:
Investor Class, Institutional Class, A Class, B Class, C Class, R Class and
Advisor Class. Not all funds offer all seven classes.



                                                                            37



The Investor Class of most funds is made available to investors directly without
any load or commission, for a single unified management fee. It is also
available through some financial intermediaries. The Investor Class of those
funds which have A and B Classes is not available directly at no load. The
Institutional and Advisor Classes are made available to institutional
shareholders or through financial intermediaries that do not require the same
level of shareholder and administrative services from the advisor as Investor
Class shareholders. As a result, the advisor is able to charge these classes a
lower total management fee. In addition to the management fee, however, the
Advisor Class shares are subject to a Master Distribution and Shareholder
Services Plan (the Advisor Class Plan). The A, B and C Classes also are made
available through financial intermediaries, for purchase by individual investors
who receive advisory and personal services from the intermediary. The R Class is
made available through financial intermediaries and is generally used in 401(k)
and other retirement plans. The total management fee for the A, B, C and R
Classes is the same as for Investor Class, but the A, B, C and R Class shares
each are subject to a separate Master Distribution and Individual Shareholder
Services Plan (the A Class Plan, B Class Plan, C Class Plan and R Class Plan,
respectively and collectively with the Advisor Class Plan, the Plans) described
below. The Plans have been adopted by the funds' Board of Directors in
accordance with Rule 12b-1 adopted by the SEC under the Investment Company Act.


Rule 12b-1


Rule 12b-1 permits an investment company to pay expenses associated with the
distribution of its shares in accordance with a plan adopted by its Board of
Directors and approved by its shareholders. Pursuant to such rule, the Board of
Directors and initial shareholder of the funds' A, B, C, R and Advisor Classes
have approved and entered into the A Class Plan, B Class Plan, C Class Plan, R
Class Plan and Advisor Class Plan, respectively. The Plans are described below.


In adopting the Plans, the Board of Directors (including a majority of directors
who are not interested persons of the funds [as defined in the Investment
Company Act], hereafter referred to as the independent directors) determined
that there was a reasonable likelihood that the Plans would benefit the funds
and the shareholders of the affected class. Pursuant to Rule 12b-1, information
with respect to revenues and expenses under the Plans is presented to the Board
of Directors quarterly for its consideration in connection with its
deliberations as to the continuance of the Plans. Continuance of the Plans must
be approved by the Board of Directors (including a majority of the independent
directors) annually. The Plans may be amended by a vote of the Board of
Directors (including a majority of the independent directors), except that the
Plans may not be amended to materially increase the amount to be spent for
distribution without majority approval of the shareholders of the affected
class. The Plans terminate automatically in the event of an assignment and may
be terminated upon a vote of a majority of the independent directors or by vote
of a majority of the outstanding shareholder votes of the affected class.

All fees paid under the Plans will be made in accordance with Section 26 of the
Conduct Rules of the National Association of Securities Dealers (NASD).

A Class Plan

As described in the Prospectuses, the A Class shares of the funds are made
available to participants in employer-sponsored retirement or savings plans and
to persons purchasing through broker-dealers, banks, insurance companies and
other financial intermediaries that provide various administrative, shareholder
and distribution services. The funds' distributor enters into contracts with
various banks, broker-dealers, insurance companies and other financial
intermediaries, with respect to the sale of the funds' shares and/or the use of
the funds' shares in various investment products or in connection with various
financial services.


38


Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for A Class
investors. In addition to such services, the financial intermediaries provide
various individual shareholder and distribution services.

To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
Board of Directors has adopted the A Class Plan. Pursuant to the A Class Plan,
the A Class pays the Advisor, as paying agent for the fund, a fee equal to 0.25%
annually of the average daily net asset value of the A Class shares. The A Class
had not been offered as of November 30, 2002, and therefore no fees have been
paid.

Payments may be made for a variety of individual shareholder services,
including, but not limited to:

(a)  providing individualized and customized investment advisory services,
     including the consideration of shareholder profiles and specific goals;

(b)  creating investment models and asset allocation models for use by
     shareholders in selecting appropriate funds;

(c)  conducting proprietary research about investment choices and the market in
     general;

(d)  periodic rebalancing of shareholder accounts to ensure compliance with the
     selected asset allocation;

(e)  consolidating shareholder accounts in one place; and

(f)  other individual services.

Individual shareholder services do not include those activities and expenses
that are primarily intended to result in the sale of additional shares of the
funds.

Distribution services include any activity undertaken or expense incurred that
is primarily intended to result in the sale of A Class shares, which services
may include but are not limited to:

(a)  the payment of sales commissions, on-going commissions and other payments
     to brokers, dealers, financial institutions or others who sell A Class
     shares pursuant to selling agreements;

(b)  compensation to registered representatives or other employees of the
     distributor who engage in or support distribution of the funds' A Class
     shares;

(c)  compensation to, and expenses (including overhead and telephone expenses)
     of, the distributor;

(d)  printing prospectuses, statements of additional information and reports for
     other-than-existing shareholders;

(e)  preparing, printing and distributing sales literature and advertising
     materials provided to the funds' shareholders and prospective shareholders

(f)  receiving and answering correspondence from prospective shareholders,
     including distributing prospectuses, statements of additional information,
     and shareholder reports;

(g)  providing facilities to answer questions from prospective shareholders
     about fund shares;

(h)  complying with federal and state securities laws pertaining to the sale of
     fund shares;

(i)  assisting shareholders in completing application forms and selecting
     dividend and other account options;

(j)  providing other reasonable assistance in connection with the distribution
     of fund shares;

(k)  organizing and conducting sales seminars and payments in the form of
     transactional and compensation or promotional incentives;


                                                                          39


(l)  profit on the foregoing;

(m)  paying service fees for providing personal, continuing services to
     investors, as contemplated by the Conduct Rules of the NASD; and

(n)  such other distribution and services activities as the advisor determines
     may be paid for by the funds pursuant to the terms of the agreement between
     the corporation and the funds' distributor and in accordance with Rule
     12b-1 of the Investment Company Act.

B Class Plan

As described in the Prospectuses, the B Class shares of the funds are made
available to participants in employer-sponsored retirement or savings plans and
to persons purchasing through broker-dealers, banks, insurance companies and
other financial intermediaries that provide various administrative, shareholder
and distribution services. The funds' distributor enters into contracts with
various banks, broker-dealers, insurance companies and other financial
intermediaries, with respect to the sale of the funds' shares and/or the use of
the funds' shares in various investment products or in connection with various
financial services.

Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for B Class
investors. In addition to such services, the financial intermediaries provide
various individual shareholder and distribution services.

To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
Board of Directors has adopted the B Class Plan. Pursuant to the B Class Plan,
the B Class pays the Advisor, as paying agent for the fund, a fee equal to 1.00%
annually of the average daily net asset value of the B Class shares. The B Class
had not been offered as of November 30, 2002, and therefore no fees have been
paid.

Payments may be made for a variety of individual shareholder services,
including, but not limited to:

(a)  providing individualized and customized investment advisory services,
     including the consideration of shareholder profiles and specific goals;

(b)  creating investment models and asset allocation models for use by
     shareholders in selecting appropriate funds;

(c)  conducting proprietary research about investment choices and the market in
     general;

(d)  periodic rebalancing of shareholder accounts to ensure compliance with the
     selected asset allocation;

(e)  consolidating shareholder accounts in one place; and

(f)  other individual services.

Individual shareholder services do not include those activities and expenses
that are primarily intended to result in the sale of additional shares of the
funds.

Distribution services include any activity undertaken or expense incurred that
is primarily intended to result in the sale of B Class shares, which services
may include but are not limited to:

(a)  the payment of sales commissions, on-going commissions and other payments
     to brokers, dealers, financial institutions or others who sell B Class
     shares pursuant to selling agreements;

(b)  compensation to registered representatives or other employees of the
     distributor who engage in or support distribution of the funds' B Class
     shares;

(c)  compensation to, and expenses (including overhead and telephone expenses)
     of, the distributor;


40


(d)  printing prospectuses, statements of additional information and reports for
     other-than-existing shareholders;

(e)  preparing, printing and distributing sales literature and advertising
     materials provided to the funds' shareholders and prospective shareholders;

(f)  receiving and answering correspondence from prospective shareholders,
     including distributing prospectuses, statements of additional information,
     and shareholder reports;

(g)  providing facilities to answer questions from prospective shareholders
     about fund shares;

(h)  complying with federal and state securities laws pertaining to the sale of
     fund shares;

(i)  assisting shareholders in completing application forms and selecting
     dividend and other account options;

(j)  providing other reasonable assistance in connection with the distribution
     of fund shares;

(k)  organizing and conducting sales seminars and payments in the form of
     transactional and compensation or promotional incentives;

(l)  profit on the foregoing;

(m)  paying service fees for providing personal, continuing services to
     investors, as contemplated by the Conduct Rules of the NASD; and

(n)  such other distribution and services activities as the advisor determines
     may be paid for by the funds pursuant to the terms of the agreement between
     the corporation and the funds' distributor and in accordance with Rule
     12b-1 of the Investment Company Act.

C Class Plan

As described in the Prospectuses, the C Class shares of the funds are made
available to participants in employer-sponsored retirement or savings plans and
to persons purchasing through broker-dealers, banks, insurance companies and
other financial intermediaries that provide various administrative, shareholder
and distribution services. The funds' distributor enters into contracts with
various banks, broker-dealers, insurance companies and other financial
intermediaries, with respect to the sale of the funds' shares and/or the use of
the funds' shares in various investment products or in connection with various
financial services.

Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for C Class
investors. In addition to such services, the financial intermediaries provide
various individual shareholder and distribution services.

To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
Board of Directors has adopted the C Class Plan. Pursuant to the C Class Plan,
the C Class pays the Advisor, as paying agent for the fund, a fee equal to 1.00%
annually of the average daily net asset value of the C Class shares. During the
fiscal year ended November 30, 2002, the aggregate amount of fees paid under the
C Class plan was International Growth, $7,175, Emerging Markets, $338, Global
Growth, $156, and Life Sciences, $60.

Payments may be made for a variety of individual shareholder services,
including, but not limited to:

(a)  providing individualized and customized investment advisory services,
     including the consideration of shareholder profiles and specific goals;

(b)  creating investment models and asset allocation models for use by
     shareholders in selecting appropriate funds;

(c)  conducting proprietary research about investment choices and the market in
     general;


                                                                           41


(d)  periodic rebalancing of shareholder accounts to ensure compliance with the
     selected asset allocation;

(e)  consolidating shareholder accounts in one place; and

(f)  other individual services.

Individual shareholder services do not include those activities and expenses
that are primarily intended to result in the sale of additional shares of the
funds.

Distribution services include any activity undertaken or expense incurred that
is primarily intended to result in the sale of C Class shares, which services
may include but are not limited to:

(a)  the payment of sales commissions, on-going commissions and other payments
     to brokers, dealers, financial institutions or others who sell C Class
     shares pursuant to selling agreements;

(b)  compensation to registered representatives or other employees of the
     distributor who engage in or support distribution of the funds' C Class
     shares;

(c)  compensation to, and expenses (including overhead and telephone expenses)
     of, the distributor;

(d)  printing prospectuses, statements of additional information and reports for
     other-than-existing shareholders;

(e)  preparing, printing and distributing sales literature and advertising
     materials provided to the funds' shareholders and prospective shareholders;

(f)  receiving and answering correspondence from prospective shareholders,
     including distributing prospectuses, statements of additional information,
     and shareholder reports;

(g)  providing facilities to answer questions from prospective shareholders
     about fund shares;

(h)  complying with federal and state securities laws pertaining to the sale of
     fund shares;

(i)  assisting shareholders in completing application forms and selecting
     dividend and other account options;

(j)  providing other reasonable assistance in connection with the distribution
     of fund shares;

(k)  organizing and conducting sales seminars and payments in the form of
     transactional and compensation or promotional incentives;

(l)  profit on the foregoing;

(m)  paying service fees for providing personal, continuing services to
     investors, as contemplated by the Conduct Rules of the NASD; and

(n)  such other distribution and services activities as the advisor determines
     may be paid for by the funds pursuant to the terms of the agreement between
     the corporation and the funds' distributor and in accordance with Rule
     12b-1 of the Investment Company Act.


R Class Plan

As described in the Prospectuses, the R Class shares of the funds are made
available to participants in employer-sponsored retirement or savings plans and
to persons purchasing through broker-dealers, banks, insurance companies and
other financial intermediaries that provide various administrative, shareholder
and distribution services. The funds' distributor enters into contracts with
various banks, broker-dealers, insurance companies and other financial
intermediaries, with respect to the sale of the funds' shares and/or the use of
the funds' shares in various investment products or in connection with various
financial services.



42



Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for R Class
investors. In addition to such services, the financial intermediaries provide
various individual shareholder and distribution services.

To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
Board of Directors has adopted the R Class Plan. Pursuant to the R Class Plan,
the R Class pays the Advisor, as paying agent for the fund, a fee equal to 0.50%
annually of the average daily net asset value of the R Class shares. The R Class
had not been offered as of November 30, 2002, and therefore no fees have been
paid.

Payments may be made for a variety of individual shareholder services,
including, but not limited to:

(a)  providing individualized and customized investment advisory services,
     including the consideration of shareholder profiles and specific goals;

(b)  creating investment models and asset allocation models for use by
     shareholders in selecting appropriate funds;

(c)  conducting proprietary research about investment choices and the market in
     general;

(d)  periodic rebalancing of shareholder accounts to ensure compliance with the
     selected asset allocation;

(e)  consolidating shareholder accounts in one place; and

(f)  other individual services.

Individual shareholder services do not include those activities and expenses
that are primarily intended to result in the sale of additional shares of the
funds.

Distribution services include any activity undertaken or expense incurred that
is primarily intended to result in the sale of R Class shares, which services
may include but are not limited to:

(a)  the payment of sales commissions, on-going commissions and other payments
     to brokers, dealers, financial institutions or others who sell R Class
     shares pursuant to selling agreements;

(b)  compensation to registered representatives or other employees of the
     distributor who engage in or support distribution of the funds' R Class
     shares;

(c)  compensation to, and expenses (including overhead and telephone expenses)
     of, the distributor;

(d)  printing prospectuses, statements of additional information and reports for
     other-than-existing shareholders;

(e)  preparing, printing and distributing sales literature and advertising
     materials provided to the funds' shareholders and prospective shareholders;

(f)  receiving and answering correspondence from prospective shareholders,
     including distributing prospectuses, statements of additional information,
     and shareholder reports;

(g)  providing facilities to answer questions from prospective shareholders
     about fund shares;

(h)  complying with federal and state securities laws pertaining to the sale of
     fund shares;

(i)  assisting shareholders in completing application forms and selecting
     dividend and other account options;

(j)  providing other reasonable assistance in connection with the distribution
     of fund shares;



                                                                           43



(k)  organizing and conducting sales seminars and payments in the form of
     transactional and compensation or promotional incentives;

(l)  profit on the foregoing;

(m)  paying service fees for providing personal, continuing services to
     investors, as contemplated by the Conduct Rules of the NASD; and

(n)  such other distribution and services activities as the advisor determines
     may be paid for by the funds pursuant to the terms of the agreement between
     the corporation and the funds' distributor and in accordance with Rule
     12b-1 of the Investment Company Act.


Advisor Class Plan

As described in the Prospectus, the funds' Advisor Class shares are made
available to participants in employer-sponsored retirement or savings plans and
to persons purchasing through financial intermediaries, such as banks,
broker-dealers and insurance companies. The funds' distributor enters into
contracts with various banks, broker-dealers, insurance companies and other
financial intermediaries with respect to the sale of the funds' shares and/or
the use of the funds' shares in various investment products or in connection
with various financial services.

Certain recordkeeping and administrative services that are provided by the
funds' transfer agent for the Investor Class shareholders may be performed by a
plan sponsor (or its agents) or by a financial intermediary for Advisor Class
shareholders. In addition to such services, the financial intermediaries provide
various distribution services.

To enable the funds' shares to be made available through such plans and
financial intermediaries, and to compensate them for such services, the funds'
advisor has reduced its management fee by 0.25% per annum with respect to the
Advisor Class shares and the funds' Board of Directors has adopted the Advisor
Class Plan. Pursuant to the Advisor Class Plan, the Advisor Class pays the
distributor a fee of 0.50% annually of the aggregate average daily asset value
of the funds' Advisor Class shares, 0.25% of which is paid for shareholder
services (described below) and 0.25% of which is paid for distribution services.
During the fiscal year ended November 30, 2002, the aggregate amount of fees
paid under the Advisor Class Plan was:

    Global Growth                $3,128
    International Discovery      $1,150
    International Growth     $1,035,762
    Emerging Markets             $6,530
    Life Sciences                  $112
    Technology                      $98

Payments may be made for a variety of shareholder services, including, but are
not limited to:

(a)  receiving, aggregating and processing purchase, exchange and redemption
     requests from beneficial owners (including contract owners of insurance
     products that utilize the funds as underlying investment media) of shares
     and placing purchase, exchange and redemption orders with the funds'
     distributor;

(b)  providing shareholders with a service that invests the assets of their
     accounts in shares pursuant to specific or pre-authorized instructions;

(c)  processing dividend payments from a fund on behalf of shareholders and
     assisting shareholders in changing dividend options, account designations
     and addresses;

(d)  providing and maintaining elective services such as check writing and wire
     transfer services;

(e)  acting as shareholder of record and nominee for beneficial owners;


44


(f)  maintaining account records for shareholders and/or other beneficial
     owners;

(g)  issuing confirmations of transactions;

(h)  providing subaccounting with respect to shares beneficially owned by
     customers of third parties or providing the information to a fund as
     necessary for such subaccounting;

(i)  preparing and forwarding investor communications from the funds (such as
     proxies, shareholder reports, annual and semi-annual financial statements
     and dividend, distribution and tax notices) to shareholders and/or other
     beneficial owners;

(j)  providing other similar administrative and sub-transfer agency services;
     and

(k)  paying service fees for the provision of personal, continuing services to
     the shareholders as contemplated by the Rules of Fair Practice of the NASD.

Shareholder services do not include those activities and expenses that are
primarily intended to result in the sale of additional shares of the funds.
During the fiscal year ended November 30, 2002, the amount of fees paid under
the Advisor Class Plan for shareholder services was:

    Global Growth              $1,564
    International Discovery      $575
    International Growth     $517,881
    Emerging Markets           $3,265
    Life Sciences                 $56
    Technology                    $49

Distribution services include any activity undertaken or expense incurred that
is primarily intended to result in the sale of Advisor Class shares, which
services may include but are not limited to

(a)  the payment of sales commissions, on going commissions and other payments
     to brokers, dealers, financial institutions or others who sell Advisor
     Class shares pursuant to Selling Agreements;

(b)  compensation to registered representatives or other employees of the
     distributor who engage in or support distribution of the funds' Advisor
     Class shares;

(c)  compensation to, and expenses (including overhead and telephone expenses)
     of, the distributor;

(d)  printing prospectuses, statements of additional information and reports for
     other-than-existing shareholders;

(e)  preparing, printing and distributing sales literature and advertising
     materials provided to the funds' shareholders and prospective shareholders;

(f)  receiving and answering correspondence from prospective shareholders,
     including distributing prospectuses, statements of additional information,
     and shareholder reports;

(g)  providing facilities to answer questions from prospective shareholders
     about fund shares;

(h)  complying with federal and state securities laws pertaining to the sale of
     fund shares;

(i)  assisting shareholders in completing application forms and selecting
     dividend and other account options;

(j)  providing other reasonable assistance in connection with the distribution
     of fund shares;

(k)  organizing and conducting sales seminars and payments in the form of
     transactional and compensation or promotional incentives;

(l)  profit on the foregoing;

(m)  paying service fees for the provision of personal, continuing services to
     investors, as contemplated by the Conduct Rules of the NASD; and


                                                                           45


(n)  such other distribution and services activities as the advisor determines
     may be paid for by the funds pursuant to the terms of the agreement between
     the corporation and the funds' distributor and in accordance with Rule
     12b-1 of the Investment Company Act.

During the fiscal year ended November 30, 2002, the amount of fees paid under
the Advisor Class Plan for distribution services was:

    Global Growth                $1,564
    International Discovery        $575
    International Growth       $517,881
    Emerging Markets             $3,265
    Life Sciences                   $56
    Technology                      $49

Sales Charges

The sales charges applicable to the A, B and C Classes of the funds are
described in the prospectuses for those classes in the section titled "Choosing
a Share Class." Shares of the A Class are subject to an initial sales charge,
which declines as the amount of the purchase increases pursuant to the schedule
set forth in the prospectus. This charge may be waived in the following
situations:

*  Qualified retirement plan purchases

*  Certain individual retirement account rollovers

*  Purchases by registered representatives and other employees of certain
   financial intermediaries (and their immediate family members) having sales
   agreements with the advisor or the distributor

*  Wrap accounts maintained for clients of certain financial intermediaries who
   have entered into agreements with American Century

*  Purchases by current and retired employees of American Century and their
   immediate family members (spouses and children under age 21) and trusts or
   qualified retirement plans established by those persons

*  Purchases by certain other investors that American Century deems appropriate,
   including but not limited to current or retired directors, trustees and
   officers of funds managed by the advisor and trusts and qualified retirement
   plans established by those persons

There are several ways to reduce the sales charges applicable to a purchase of A
Class shares. These methods are described in the relevant prospectuses. You or
your financial advisor must indicate at the time of purchase that you intend to
take advantage of one of these reductions.

Shares of the A, B and C Classes are subject to a contingent deferred sales
charge upon redemption of the shares in certain circumstances. The specific
charges and when they apply are described in the relevant prospectuses. The
contingent deferred sales charge may be waived for certain redemptions by some
shareholders, as described in the prospectuses.

Shares of the A and B Classes of the funds have not been offered as of the
fiscal year ended November 30, 2002. No contingent deferred sales charges were
paid to the Distributor for C Class shares for the fiscal year ended November
30, 2002.


46


Dealer Concessions

The funds' distributor expects to pay sales commissions to the financial
intermediaries who sell A, B and/or C Class shares of the fund at the time of
such sales. Payments for A Class shares will be as follows:

Purchase Amount                               Dealer Concession
--------------------------------------------------------------------------------
Less than $50,000                             5.00%
--------------------------------------------------------------------------------
$50,000 - $99,999                             4.00%
--------------------------------------------------------------------------------
$100,000 - $249,999                           3.25%
--------------------------------------------------------------------------------
$250,000 - $499,999                           2.00%
--------------------------------------------------------------------------------
$500,000 - $999,999                           1.75%
--------------------------------------------------------------------------------
$1,000,000 - $3,999,999                       1.00%
--------------------------------------------------------------------------------
$4,000,000 - $9,999,999                       0.50%
--------------------------------------------------------------------------------
Greater than $10,000,000                      0.25%
--------------------------------------------------------------------------------

No concession will be paid on purchases by qualified retirement plans. Payments
will equal 4.00% of the purchase price of B Class shares and 1.00% of the
purchase price of the C Class shares sold by the intermediary. The distributor
will retain the 12b-1 fee paid by the C Class of funds for the first 13 months
after the shares are purchased. This fee is intended in part to permit the
distributor to recoup a portion of on-going sales commissions to dealers plus
financing costs, if any. After the first 13 months, the distributor will make
the C Class distribution and individual shareholder services fee payments
described above to the financial intermediaries involved on a quarterly basis.
In addition, B and C Class purchases and A Class purchases greater than
$1,000,000 are subject to a contingent deferred sales charge as described in the
prospectuses.

From time to time, the distributor may provide additional concessions to
dealers, including but not limited to payment assistance for conferences and
seminars, provision of sales or training programs for dealer employees and/or
the public (including, in some cases, payment for travel expenses for registered
representatives and other dealer employees who participate), advertising and
sales campaigns about a fund or funds, and assistance in financing
dealer-sponsored events. Other concessions may be offered as well, and all such
concessions will be consistent with applicable law, including the then-current
rules of the National Association of Securities Dealers, Inc. Such concessions
will not change the price paid by investors for shares of the funds.

BUYING AND SELLING FUND SHARES

Information about buying, selling and exchanging fund shares is contained in the
funds' Prospectuses and in Your Guide to American Century Services. The
Prospectuses and guide are available to investors without charge and may be
obtained by calling us.

VALUATION OF A FUND'S SECURITIES

All classes of the funds except the A Class are offered at their net asset
value, as described below. The A Class of the funds are offered at their public
offering price, which is the net asset value plus the appropriate sales charge.
This calculation may be expressed as a formula:

Offering Price = Net Asset Value/(1 - Sales Charge as a % of Offering Price)


For example, if the net asset value of a fund's A Class shares is $5.00, the
public offering price would be $5.00/(1-5.75%) = $5.31.



                                                                           47


Each fund's net asset value (NAV) is calculated as of the close of business of
the New York Stock Exchange (the Exchange), each day the Exchange is open for
business. The Exchange usually closes at 4 p.m. Eastern time. The Exchange
typically observes the following holidays: New Year's Day, Martin Luther King
Jr. Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day and Christmas Day. Although the funds expect the same
holiday schedule to be observed in the future, the Exchange may modify its
holiday schedule at any time.

Each fund's NAV is calculated by adding the value of all portfolio securities
and other assets, deducting liabilities and dividing the result by the number of
shares outstanding. Expenses and interest earned on portfolio securities are
accrued daily.


The portfolio securities of each fund that are listed or traded on a domestic
securities exchange are valued at the last sale price on that exchange except as
otherwise noted. Portfolio securities primarily traded on foreign securities
exchanges are generally valued at the preceding closing values of such
securities on the exchange where primarily traded or as of the close of the New
York Stock Exchange, if that is earlier. That value is then converted to U.S.
dollars at the prevailing foreign exchange rate. If no sale is reported, or if
local convention or regulation so provides, the mean of the latest bid and asked
prices is used. Depending on local convention or regulation, securities traded
over-the-counter are priced at the mean of the latest bid and asked prices, the
last sale price or the official closing price. When market quotations are not
readily available, securities and other assets are valued at fair value as
determined in accordance with procedures adopted by the Board of Directors.


Debt securities not traded on a principal securities exchange are valued through
valuations obtained from a commercial pricing service or at the most recent mean
of the bid and asked prices provided by investment dealers in accordance with
procedures established by the Board of Directors.

Securities maturing within 60 days of the valuation date may be valued at cost,
plus or minus any amortized discount or premium, unless the directors determine
that this would not result in fair valuation of a given security. Other assets
and securities for which quotations are not readily available are valued in good
faith at their fair value using methods approved by the Board of Directors.

The value of an exchange-traded foreign security is determined in its national
currency as of the close of trading on the foreign exchange on which it is
traded or as of the close of business on the New York Stock Exchange, if that is
earlier. That value is then translated to dollars at the prevailing foreign
exchange rate.

Trading in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed at various times before the close
of business on each day that the New York Stock Exchange is open. If an event
were to occur after the value of a security was established but before the net
asset value per share was determined that was likely to materially change the
net asset value, then that security would be valued at fair value as determined
in accordance with procedures adopted by the Board of Directors.

Trading of these securities in foreign markets may not take place on every day
that the Exchange is open. In addition, trading may take place in various
foreign markets and on some electronic trading networks on Saturdays or on other
days when the Exchange is not open and on which the funds' net asset values are
not calculated. Therefore, such calculations do not take place contemporaneously
with the determination of the prices of many of the portfolio securities used in
such calculations and the value of the funds' portfolios may be affected on days
when shares of the fund may not be purchased or redeemed.


48


TAXES


FEDERAL INCOME TAXES


Each fund intends to qualify annually as a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). By so
qualifying, a fund will be exempt from federal income taxes to the extent that
it distributes substantially all of its net investment income and net realized
capital gains (if any) to shareholders. If a fund fails to qualify as a
regulated investment company, it will be liable for taxes, significantly
reducing its distributions to investors and eliminating investors' ability to
treat distributions received from the funds in the same manner in which they
were realized by the funds.


If fund shares are purchased through taxable accounts, distributions of net
investment income and net short-term capital gains are taxable to you as
ordinary income, unless they are designated as qualified dividend income and you
meet a minimum required holding period with respect to your shares of a fund, in
which such distributions are taxed as long-term capital gains. Qualified
dividend income is a dividend received by a fund from the stock of a domestic or
qualifying foreign corporation, provided that the fund has held the stock for a
required holding period. The required holding period for qualified dividend
income is met if the underlying shares are held more than 60 days in the 120-day
period beginning 60 days prior to the ex-dividend date. Dividends received by
the funds on shares of stock of domestic corporations may qualify for the 70%
dividends received deduction to the extent that the fund held those shares for
more than 45 days. Distributions from gains on assets held by the funds longer
than 12 months are taxable as long-term gains regardless of the length of time
you have held your shares in the funds. If you purchase shares in the fund and
sell them at a loss within six months, your loss on the sale of those shares
will be treated as a long-term capital loss to the extent of any long-term
capital gains dividend you received on those shares.


Dividends and interest received by a fund on foreign securities may give rise to
withholding and other taxes imposed by foreign countries. However, tax
conventions between certain countries and the United States may reduce or
eliminate such taxes. Foreign countries generally do not impose taxes on capital
gains in respect of investments by non-resident investors. Any foreign taxes
paid by a fund will reduce its dividend distributions to investors.

If more than 50% of the value of a fund's total assets at the end of its fiscal
year consists of securities of foreign corporations, the fund may qualify for
and make an election with the Internal Revenue Service with respect to such
fiscal year so that fund shareholders may be able to claim a foreign tax credit
in lieu of a deduction for foreign income taxes paid by the fund. If such an
election is made, the foreign taxes paid by the fund will be treated as income
received by you. In order for you to utilize the foreign tax credit, you must
have held your shares for 16 days or more during the 30-day period, beginning 15
days prior to the ex-dividend date for the mutual fund shares. The mutual fund
must meet a similar holding period requirement with respect to foreign
securities to which a dividend is attributable. Any portion of the foreign tax
credit that is ineligible as a result of the fund not meeting the holding period
requirement will be deducted in computing net investment income.

If a fund purchases the securities of certain foreign investment funds or trusts
called passive foreign investment companies (PFIC), capital gains on the sale of
such holdings will be deemed ordinary income regardless of how long the fund
holds the investment. The fund also may be subject to corporate income tax and
an interest charge on certain dividends and capital gains earned from these
investments, regardless of whether such income and gains are distributed to
shareholders. In the alternative, the fund may elect to recognize cumulative
gains on such investments as of the last day of its fiscal year and distribute
them to shareholders. Any distribution attributable to a PFIC is characterized
as ordinary income.


                                                                          49


As of November 30, 2002, the funds in the table below had the following capital
loss carryovers. When a fund has a capital loss carryover, it does not make
capital gains distributions until the loss has been offset or expired.

Fund                           Capital Loss Carryover
-----------------------------------------------------------------------------
International Growth           $1,518,407,105 (expiring in 2009 through 2010)
-----------------------------------------------------------------------------
International Discovery        $150,147,704 (expiring in 2009 through 2010)
-----------------------------------------------------------------------------
Emerging Markets               $37,434,597 (expiring in 2009 through 2010
-----------------------------------------------------------------------------
Global Growth                  $108,994,495 (expiring in 2009 through 2010)
-----------------------------------------------------------------------------
International Opportunities    $3,397,388 (expiring in 2009 through 2010)
-----------------------------------------------------------------------------
Life Sciences                  $64,222,705 (expiring in 2009 through 2010
-----------------------------------------------------------------------------
Technology                     $272,930,689 (expiring in 2008 through 2010)
-----------------------------------------------------------------------------

If you have not complied with certain provisions of the Internal Revenue Code
and Regulations, either American Century or your financial intermediary is
required by federal law to withhold and remit to the IRS the applicable federal
withholding rate of reportable payments (which may include dividends, capital
gains distributions and redemption proceeds). Those regulations require you to
certify that the Social Security number or tax identification number you provide
is correct and that you are not subject to withholding for previous
under-reporting to the IRS. You will be asked to make the appropriate
certification on your account application. Payments reported by us to the IRS
that omit your Social Security number or tax identification number will subject
us to a non-refundable penalty of $50, which will be charged against your
account if you fail to provide the certification by the time the report is
filed.

A redemption of shares of a fund (including a redemption made in an exchange
transaction) will be a taxable transaction for federal income tax purposes and
you will generally recognize gain or loss in an amount equal to the difference
between the basis of the shares and the amount received. If a loss is realized
on the redemption of fund shares, the reinvestment in additional fund shares
within 30 days before or after the redemption may be subject to the "wash sale"
rules of the Code, resulting in a postponement of the recognition of such loss
for federal income tax purposes.

STATE AND LOCAL TAXES

Distributions by the funds also may be subject to state and local taxes, even if
all or a substantial part of such distributions are derived from interest on
U.S. government obligations which, if you received such interest directly, would
be exempt from state income tax. However, most but not all states allow this tax
exemption to pass through to fund shareholders when a fund pays distributions to
its shareholders. You should consult your tax advisor about the tax status of
such distributions in your state.

The information above is only a summary of some of the tax considerations
affecting the funds and their shareholders. No attempt has been made to discuss
individual tax consequences. A prospective investor should consult with his or
her tax advisors or state or local tax authorities to determine whether the
funds are suitable investments.


 50


HOW FUND PERFORMANCE INFORMATION IS CALCULATED

The funds may quote performance in various ways. Fund performance may be shown
by presenting one or more performance measurements, including cumulative total
return, average annual total return or yield.

All performance information advertised by the funds is historical in nature and
is not intended to represent or guarantee future results. The value of fund
shares when redeemed may be more or less than their original cost.

Total returns quoted in advertising and sales literature reflect all aspects of
a fund's return, including the effect of reinvesting dividends and capital gains
distributions (if any) and any change in the fund's NAV during the period.

Average annual total returns are calculated by determining the growth or decline
in value of a hypothetical historical investment in a fund during a stated
period and then calculating the annually compounded percentage rate that would
have produced the same result if the rate of growth or decline in value had been
constant throughout the period. For example, a cumulative total return of 100%
over 10 years would produce an average annual return of 7.18%, which is the
steady annual rate that would equal 100% growth on a compounded basis in 10
years. While average annual total returns are a convenient means of comparing
investment alternatives, investors should realize that the funds' performance is
not constant over time, but changes from year to year, and that average annual
total returns represent averaged figures as opposed to actual year-to-year
performance.

In addition to average annual total returns, each fund may quote unaveraged or
cumulative total returns reflecting the simple change in value of an investment
over a stated period, including periods other than one, five and 10 years.
Average annual and cumulative total returns may be quoted as percentages or as
dollar amounts and may be calculated for a single investment, a series of
investments, or a series of redemptions over any time period. Total returns may
be broken down into components of income and capital (including capital gains
and changes in share price) to illustrate the relationship of these factors and
their contributions to total return.

The tables below show the average annual total returns for the various classes
of the funds calculated three different ways. As new classes, performance
information for the A and B Classes of International Growth is not available as
of the fiscal year end.

Return Before Taxes shows the actual change in the value of the 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 two after-tax returns take into
account taxes that may be associated with owning the fund shares. Return After
Taxes on Distributions is a fund's actual performance, adjusted by the effect of
taxes on distributions made by the fund during the periods shown. Return After
Taxes on Distributions and the Sale of Fund Shares is further adjusted to
reflect the tax impact on any change in the value of fund shares as if they had
been sold on the last day of the period.

After-tax returns are calculated using the historical highest federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns shown are not relevant to investors who hold fund
shares through tax-deferred arrangements such as 401(k) plans or IRAs.


51



AVERAGE ANNUAL TOTAL RETURNS-- INVESTOR CLASS (Periods Ended November 30, 2002)
---------------------------------------------------------------------------------------------------
                                         1          5        10       From              Inception
Fund                                     year       years    years    Inception(1)      Date
---------------------------------------------------------------------------------------------------
Global Growth                                                                           12/01/1998
Return Before Taxes                     -12.78%      N/A     N/A       4.84%
Return After Taxes on Distributions     -12.78%      N/A     N/A       3.91%
Return After Taxes on Distributions
   and Sale of Fund Shares               -7.85%      N/A     N/A       3.80%
---------------------------------------------------------------------------------------------------
International Growth                                                                    05/09/1991
Return Before Taxes                     -14.54%    1.11%     8.02%     8.09%
Return After Taxes on Distributions     -14.58%   -0.81%     6.10%     N/A
Return After Taxes on Distributions
   and Sale of Fund Shares               -8.81%    0.76%     6.20%     N/A
---------------------------------------------------------------------------------------------------
International Opportunities                                                             06/01/2001
Return Before Taxes                      -2.87%      N/A     N/A      -3.64%
Return After Taxes on Distributions      -2.88%      N/A     N/A      -3.64%
Return After Taxes on Distributions
   and Sale of Fund Shares               -1.77%      N/A     N/A      -2.91%
---------------------------------------------------------------------------------------------------
International Discovery                                                                 04/01/1994
Return Before Taxes                      -8.00%    6.56%     N/A      11.02%
Return After Taxes on Distributions      -8.00%    5.41%     N/A      10.13%
Return After Taxes on Distributions
   and Sale of Fund Shares               -4.91%    5.35%     N/A       9.27%
---------------------------------------------------------------------------------------------------
Emerging Markets                                                                        09/30/1997
Return Before Taxes                     -10.86%   -2.04%     N/A      -5.45%
Return After Taxes on Distributions     -10.86%   -2.18%     N/A      -5.58%
Return After Taxes on Distributions
   and Sale of Fund Shares               -6.67%   -1.59%     N/A      -4.22%
---------------------------------------------------------------------------------------------------
Life Sciences                                                                           06/30/2000
Return Before Taxes                     -27.31%      N/A     N/A     -12.38%
Return After Taxes on Distributions     -27.31%      N/A     N/A     -12.74%
Return After Taxes on Distributions
   and Sale of Fund Shares              -16.77%      N/A     N/A      -9.83%
---------------------------------------------------------------------------------------------------
Technology                                                                              06/30/2000
Return Before Taxes                     -31.10%      N/A     N/A     -40.26%
Return After Taxes on Distributions     -31.10%      N/A     N/A     -40.24%
Return After Taxes on Distributions
   and Sale of Fund Shares              -19.10%      N/A     N/A     -29.44%
---------------------------------------------------------------------------------------------------

(1)  Only funds with performance history less than 10 years show
     after-tax returns from inception.



52



AVERAGE ANNUAL TOTAL RETURNS-- INSTITUTIONAL CLASS (Periods Ended November 30, 2002)
-----------------------------------------------------------------------------------------------
Fund                                     1 year     5 years     From Inception   Inception Date
-----------------------------------------------------------------------------------------------
Global Growth                                                                     08/01/2000
Return Before Taxes                     -12.60%     N/A         -19.68%
Return After Taxes on Distributions     -12.60%     N/A         -20.38%
Return After Taxes on Distributions
   and Sale of Fund Shares               -7.74%     N/A         -15.24%
-----------------------------------------------------------------------------------------------
International Growth                                                              11/20/1997
Return Before Taxes                     -14.33%    1.34%          1.24%
Return After Taxes on Distributions     -14.43%   -0.65%         -0.73%
Return After Taxes on Distributions
   and Sale of Fund Shares               -8.67%    0.91%          0.83%
-----------------------------------------------------------------------------------------------
International Discovery                                                           01/02/1998
Return Before Taxes                      -7.76%     N/A          6.54%
Return After Taxes on Distributions      -7.76%     N/A          5.75%
Return After Taxes on Distributions
   and Sale of Fund Shares               -4.77%     N/A          5.52%
-----------------------------------------------------------------------------------------------
Emerging Markets                                                                  01/28/1999
Return Before Taxes                     -10.78%     N/A          2.83%
Return After Taxes on Distributions     -10.78%     N/A          2.64%
Return After Taxes on Distributions
   and Sale of Fund Shares               -6.62%     N/A          2.33%
-----------------------------------------------------------------------------------------------
Life Sciences                                                                     07/17/2000
Return Before Taxes                     -27.20%     N/A        -14.26%
Return After Taxes on Distributions     -27.20%     N/A        -14.61%
Return After Taxes on Distributions
   and Sale of Fund Shares              -16.70%     N/A        -11.27%
-----------------------------------------------------------------------------------------------
Technology                                                                        07/14/2000
Return Before Taxes                     -30.95%     N/A        -43.09%
Return After Taxes on Distributions     -30.95%     N/A        -43.08%
Return After Taxes on Distributions
   and Sale of Fund Shares              -19.01%     N/A        -31.30%
-----------------------------------------------------------------------------------------------



                                                                           53



AVERAGE ANNUAL TOTAL RETURNS-- ADVISOR CLASS (Periods Ended November 30, 2002)
-------------------------------------------------------------------------------------------------
Fund                                     1 year     5 years     From Inception    Inception Date
-------------------------------------------------------------------------------------------------
Global Growth                                                                     02/05/1999
Return Before Taxes                    -12.99%      N/A           1.84%
Return After Taxes on Distributions    -12.99%      N/A           0.94%
Return After Taxes on Distributions
   and Sale of Fund Shares              -7.97%      N/A           1.37%
-------------------------------------------------------------------------------------------------
International Growth                                                              10/02/1996
Return Before Taxes                    -14.81%      0.84%         4.03%
Return After Taxes on Distributions    -14.76%      -0.99%        1.92%
Return After Taxes on Distributions
   and Sale of Fund Shares              -8.98%      0.59%         2.94%
-------------------------------------------------------------------------------------------------
International Discovery                                                           04/28/1998
Return Before Taxes                     -8.16%      N/A           1.75%
Return After Taxes on Distributions     -8.16%      N/A           0.97%
Return After Taxes on Distributions
   and Sale of Fund Shares              -5.01%      N/A           1.59%
-------------------------------------------------------------------------------------------------
Emerging Markets                                                                  05/12/1999
Return Before Taxes                    -11.17%      N/A          -4.92%
Return After Taxes on Distributions    -11.17%      N/A          -5.10%
Return After Taxes on Distributions
   and Sale of Fund Shares              -6.86%      N/A          -3.83%
-------------------------------------------------------------------------------------------------
Life Sciences                                                                    11/14/2000
Return Before Taxes                    -27.78%      N/A          -18.58%
Return After Taxes on Distributions    -27.78%      N/A          -18.97%
Return After Taxes on Distributions
   and Sale of Fund Shares             -17.06%      N/A          -14.65%
-------------------------------------------------------------------------------------------------
Technology                                                                       06/30/2000
Return Before Taxes                    -31.25%      N/A          -40.43%
Return After Taxes on Distributions    -31.25%      N/A          -40.42%
Return After Taxes on Distributions
   and Sale of Fund Shares             -19.19%      N/A          -29.55%
-------------------------------------------------------------------------------------------------



54



AVERAGE ANNUAL TOTAL RETURNS - C CLASS(1) (Periods Ended November 30, 2002)
--------------------------------------------------------------------------------------
Fund                                     1 year      From Inception     Inception Date
--------------------------------------------------------------------------------------
Global Growth                                                           03/01/2002
Return Before Taxes                      N/A         -13.74%
Return After Taxes on Distributions      N/A         -13.74%
Return After Taxes on Distributions
   and Sale of Fund Shares               N/A         -8.43%
--------------------------------------------------------------------------------------
International Growth                                                    06/04/2001
Return Before Taxes                      -15.60%     -19.77%
Return After Taxes on Distributions      -16.45%     -19.85%
Return After Taxes on Distributions
   and Sale of Fund Shares               -10.10%     -15.69%
--------------------------------------------------------------------------------------
Emerging Markets                                                        12/18/2001
Return Before Taxes                      N/A         -16.41%
Return After Taxes on Distributions      N/A         -16.41%
Return After Taxes on Distributions
   and Sale of Fund Shares               N/A         -10.08%
--------------------------------------------------------------------------------------
Life Sciences                                                           11/29/2001
Return Before Taxes                      -28.34%     -28.34%
Return After Taxes on Distributions      -29.05%     -29.00%
Return After Taxes on Distributions
   and Sale of Fund Shares               -17.84%     -23.20%
--------------------------------------------------------------------------------------

PERFORMANCE COMPARISONS


The funds' performance may be compared with the performance of other mutual
funds tracked by mutual fund rating services or with other indexes of market
performance. This may include comparisons with funds that are sold with a sales
charge or deferred sales charge. Sources of economic data that may be used for
such comparisons may include, but are not limited to, U.S. Treasury bill, note
and bond yields, money market fund yields, U.S. government debt and percentage
held by foreigners, the U.S. money supply, net free reserves, and yields on
current-coupon GNMAs (source: Board of Governors of the Federal Reserve System);
the federal funds and discount rates (source: Federal Reserve Bank of New York);
yield curves for U.S. Treasury securities and AA/AAA-rated corporate securities
(source: Bloomberg Financial Markets); yield curves for AAA-rated tax-free
municipal securities (source: Telerate); yield curves for foreign government
securities (sources: Bloomberg Financial Markets and Data Resources, Inc.);
total returns on foreign bonds (source: J.P. Morgan Securities Inc.); various
U.S. and foreign government reports; the junk bond market (source: Data
Resources, Inc.); the CRB Futures Index (source: Commodity Index Report); the
price of gold (sources: London a.m./p.m. fixing and New York Comex Spot Price);
rankings of any mutual fund or mutual fund category tracked by Lipper, Inc. or
Morningstar, Inc.; mutual fund rankings published in major, nationally
distributed periodicals; data provided by the Investment Company Institute;
Ibbotson Associates, Stocks, Bonds, Bills, and Inflation; major indices of stock
market performance; and indexes and historical data supplied by major securities
brokerage or investment advisory firms. The funds also may utilize reprints from
newspapers and magazines furnished by third parties to illustrate historical
performance or to provide general information about the funds.


                                                                           55


PERMISSIBLE ADVERTISING INFORMATION

From time to time, the funds may, in addition to any other permissible
information, include the following types of information in advertisements,
supplemental sales literature and reports to shareholders:

(1)  discussions of general economic or financial principles (such as the
     effects of compounding and the benefits of dollar-cost averaging);

(2)  discussions of general economic trends;

(3)  presentations of statistical data to supplement such discussions;

(4)  descriptions of past or anticipated portfolio holdings for one or more of
     the funds;

(5)  descriptions of investment strategies for one or more of the funds;

(6)  descriptions or comparisons of various savings and investment products
     (including, but not limited to, qualified retirement plans and individual
     stocks and bonds), which may or may not include the funds;

(7)  comparisons of investment products (including the funds) with relevant
     market or industry indices or other appropriate benchmarks;

(8)  discussions of fund rankings or ratings by recognized rating organizations;
     and

(9)  testimonials describing the experience of persons that have invested in one
     or more of the funds.

The funds may also include calculations, such as hypothetical compounding
examples, which describe hypothetical investment results. Such performance
examples will be  based on an express set of assumptions and are not indicative
of the performance of any of the funds.

MULTIPLE CLASS PERFORMANCE ADVERTISING

Pursuant to the Multiple Class Plans, the corporation may issue additional
classes of existing funds or introduce new funds with multiple classes available
for purchase. To the extent a new class is added to an existing fund, the
managers may, in compliance with SEC and NASD rules, regulations and guidelines,
market the new class of shares using the historical performance information of
the original class of shares. When quoting performance information for a new
class of shares for periods prior to the first full quarter after inception, the
original class' performance will be restated to reflect the expenses of the new
class and for periods after the first full quarter after inception, actual
performance of the new class will be used.

FINANCIAL STATEMENTS

The financial statements for the funds have been audited by Deloitte & Touche
LLP,  independent auditors. Their Independent Auditors' Reports and the
financial statements included in the funds' Annual Reports for the fiscal year
ended November 30, 2002, are incorporated herein by reference.


56


EXPLANATION OF FIXED-INCOME  SECURITIES RATINGS


As described in the Prospectus and in this SAI, some of the funds may invest in
fixed-income securities. Those investments, however, are subject to certain
credit quality restrictions as noted in the Prospectus. The following is a
summary of the rating categories referenced in the Prospectus.


RATINGS OF CORPORATE DEBT SECURITIES
--------------------------------------------------------------------------------
Standard & Poor's
--------------------------------------------------------------------------------
AAA     This is the highest rating assigned by S&P to a debt obligation. It
        indicates an extremely strong capacity to pay interest and repay
        principal.
--------------------------------------------------------------------------------
AA      Debt rated in this category is considered to have a very strong capacity
        to pay interest and repay principal. It differs from the highest-rated
        obligations only in small degree.
--------------------------------------------------------------------------------
A       Debt rated A has a strong capacity to pay interest and repay principal,
        although it is somewhat more susceptible to the adverse effects of
        changes in circumstances and economic conditions than debt in
        higher-rated categories.
--------------------------------------------------------------------------------
BBB     Debt rated in this category is regarded as having an adequate capacity
        to pay interest and repay principal. While it normally exhibits adequate
        protection parameters, adverse economic conditions or changing
        circumstances are more likely to lead to a weakened capacity to pay
        interest and repay principal for debt in this category than in
        higher-rated categories. Debt rated below BBB is regarded as having
        significant speculative characteristics.
--------------------------------------------------------------------------------
BB      Debt rated in this category has less near-term vulnerability to default
        than other speculative issues. However, it faces major ongoing
        uncertainties or exposure to adverse business, financial, or economic
        conditions that could lead to inadequate capacity to meet timely
        interest and principal payments. The BB rating also is used for debt
        subordinated to senior debt that is assigned an actual or implied BBB
        rating.
--------------------------------------------------------------------------------
B       Debt rated in this category is more vulnerable to nonpayment than
        obligations rated 'BB', but currently has the capacity to pay interest
        and repay principal. Adverse business, financial, or economic conditions
        will likely impair the obligor's capacity or willingness to pay interest
        and repay principal.
--------------------------------------------------------------------------------
CCC     Debt rated in this category is currently vulnerable to nonpayment and is
        dependent upon favorable business, financial, and economic conditions to
        meet timely payment of interest and repayment of principal. In the event
        of adverse business, financial, or economic conditions, it is not likely
        to have the capacity to pay interest and repay principal. The CCC rating
        category is also used for debt subordinated to senior debt that is
        assigned an actual or implied B or B- rating.
--------------------------------------------------------------------------------
CC      Debt rated in this category is currently highly vulnerable to
        nonpayment. This rating category is also applied to debt subordinated to
        senior debt that is assigned an actual or implied CCC rating.
--------------------------------------------------------------------------------
C       The rating C typically is applied to debt subordinated to senior debt,
        and is currently highly vulnerable to nonpayment of interest and
        principal. This rating may be used to cover a situation where a
        bankruptcy petition has been filed or similar action taken, but debt
        service payments are being continued.
--------------------------------------------------------------------------------
D       Debt rated in this category is in default. This rating is used when
        interest payments or principal repayments are not made on the date due
        even if the applicable grace period has not expired, unless S&P believes
        that such payments will be made during such grace period. It also will
        be used upon the filing of a bankruptcy petition for the taking of a
        similar action if debt service payments are jeopardized.
--------------------------------------------------------------------------------



Moody's Investors Service, Inc.
--------------------------------------------------------------------------------
Aaa     This is the highest rating assigned by Moody's to a debt obligation. It
        indicates an extremely strong capacity to pay interest and repay
        principal.
--------------------------------------------------------------------------------
Aa      Debt rated in this category is considered to have a very strong capacity
        to pay interest and repay principal and differs from Aaa issues only in
        a small degree. Together with Aaa debt, it comprises what are generally
        known as high-grade bonds.
--------------------------------------------------------------------------------
A       Debt rated in this category possesses many favorable investment
        attributes and is to be considered as upper-medium-grade debt. Although
        capacity to pay interest and repay principal are considered adequate, it
        is somewhat more susceptible to the adverse effects of changes in
        circumstances and economic conditions than debt in higher-rated
        categories.
--------------------------------------------------------------------------------
Baa     Debt rated in this category is considered as medium-grade debt having an
        adequate capacity to pay interest and repay principal. While it normally
        exhibits adequate protection parameters, adverse economic conditions or
        changing circumstances are more likely to lead to a weakened capacity to
        pay interest and repay principal for debt in this category than in
        higher-rated categories. Debt rated below Baa is regarded as having
        significant speculative characteristics.
--------------------------------------------------------------------------------
Ba      Debt rated Ba has less near-term vulnerability to default than other
        speculative issues. However, it faces major ongoing uncertainties or
        exposure to adverse business, financial or economic conditions that
        could lead to inadequate capacity to meet timely interest and principal
        payments. Often the protection of interest and principal payments may be
        very moderate.
--------------------------------------------------------------------------------
B       Debt rated B has a greater vulnerability to default, but currently has
        the capacity to meet financial commitments. Assurance of interest and
        principal payments or of maintenance of other terms of the contract over
        any long period of time may be small. The B rating category is also used
        for debt subordinated to senior debt that is assigned an actual or
        implied Ba or Ba3 rating.
--------------------------------------------------------------------------------
Caa     Debt rated Caa is of poor standing, has a currently identifiable
        vulnerability to default, and is dependent upon favorable business,
        financial and economic conditions to meet timely payment of interest and
        repayment of principal. In the event of adverse business, financial or
        economic conditions, it is not likely to have the capacity to pay
        interest and repay principal. Such issues may be in default or there may
        be present elements of danger with respect to principal or interest. The
        Caa rating is also used for debt subordinated to senior debt that is
        assigned an actual or implies B or B3 rating.
--------------------------------------------------------------------------------
Ca      Debt rated in this category represent obligations that are speculative
        in a high degree. Such debt is often in default or has other marked
        shortcomings.
--------------------------------------------------------------------------------
C       This is the lowest rating assigned by Moody's, and debt rated C can be
        regarded as having extremely poor prospects of attaining investment
        standing.
--------------------------------------------------------------------------------

Fitch, Inc.
--------------------------------------------------------------------------------
AAA     Debt rated in this category has the lowest expectation of credit risk.
        Capacity for timely payment of financial commitments is exceptionally
        strong and highly unlikely to be adversely affected by foreseeable
        events.
--------------------------------------------------------------------------------
AA      Debt rated in this category has a very low expectation of credit risk.
        Capacity for timely payment of financial commitments is very strong and
        not significantly vulnerable to foreseeable events.
--------------------------------------------------------------------------------
A       Debt rated in this category has a low expectation of credit risk.
        Capacity for timely payment of financial commitments is strong, but may
        be more vulnerable to changes in circumstances or in economic conditions
        than debt rated in higher categories.
--------------------------------------------------------------------------------
BBB     Debt rated in this category currently has a low expectation of credit
        risk and an adequate capacity for timely payment of financial
        commitments. However, adverse changes in circumstances and in economic
        conditions are more likely to impair this capacity. This is the lowest
        investment grade category.
--------------------------------------------------------------------------------
BB      Debt rated in this category has a possibility of developing credit risk,
        particularly as the result of adverse economic change over time.
        However, business or financial alternatives may be available to allow
        financial commitments to be met. Securities rated in this category are
        not investment grade.
--------------------------------------------------------------------------------
B       Debt rated in this category has significant credit risk, but a limited
        margin of safety remains. Financial commitments currently are being met,
        but capacity for continued debt service payments is contingent upon a
        sustained, favorable business and economic environment.
--------------------------------------------------------------------------------




Fitch, Inc.
--------------------------------------------------------------------------------
CCC, CC, C      Debt rated in these categories has a real possibility for
                default. Capacity for meeting financial commitments depends
                solely upon sustained, favorable business or economic
                developments. A CC rating indicates that default of some kind
                appears probable; a C rating signals imminent default.
--------------------------------------------------------------------------------
DDD, DD, D      The ratings of obligations in this category are based on their
                prospects for achieving partial or full recovery in a
                reorganization or liquidation of the obligor. While expected
                recovery values are highly speculative and cannot be estimated
                with any precision, the following serve as general guidelines.
                'DDD' obligations have the highest potential for recovery,
                around 90%- 100% of outstanding amounts and accrued interest.
                'DD' indicates potential recoveries in the range of 50%-90% and
                'D' the lowest recovery potential, i.e., below 50%.

                Entities rated in this category have defaulted on some or all of
                their obligations. Entities rated 'DDD' have the highest
                prospect for resumption of performance or continued operation
                with or without a formal reorganization process. Entities rated
                'DD' and 'D' are generally undergoing a formal reorganization or
                liquidation process; those rated 'DD' are likely to satisfy a
                higher portion of their outstanding obligations, while entities
                rated 'D' have a poor prospect of repaying all obligations.
--------------------------------------------------------------------------------

To provide more detailed indications of credit quality, the Standard & Poor's
ratings from AA to CCC may be modified by the addition of a plus or minus sign
to show relative standing within these major rating categories. Similarly,
Moody's adds numerical modifiers (1,2,3) to designate relative standing within
its major bond rating categories.

COMMERCIAL PAPER RATINGS
----------------------------------------------------------------------------------------------
S&P    Moody's      Description
----------------------------------------------------------------------------------------------
A-1    Prime-1      This indicates that the degree of safety regarding timely payment
       (P-1)        is strong. Standard & Poor's rates those issues determined to
                    possess extremely strong safety characteristics as A-1+.
----------------------------------------------------------------------------------------------
A-2    Prime-2      Capacity for timely payment on commercial paper is satisfactory,
       (P-2)        but the relative degree of safety is not as high as for issues
                    designated A-1. Earnings trends and coverage ratios, while
                    sound, will be more subject to variation. Capitalization characteristics,
                    while still appropriated, may be more affected by external
                    conditions. Ample alternate liquidity is maintained.
----------------------------------------------------------------------------------------------
A-3    Prime-3      Satisfactory capacity for timely repayment. Issues that carry this
       (P-3)        rating are somewhat more vulnerable to the adverse changes in
                    circumstances than obligations carrying the higher designations.
----------------------------------------------------------------------------------------------

NOTE RATINGS
--------------------------------------------------------------------------------
S&P     Moody's         Description
--------------------------------------------------------------------------------
SP-1    MIG-1; VMIG-1   Notes are of the highest quality enjoying strong
                        protection from established cash flows of funds for
                        their servicing or from established and broad-based
                        access to the market for refinancing, or both.
--------------------------------------------------------------------------------
SP-2    MIG-2; VMIG-2   Notes are of high quality with margins of protection
                        ample, although not so large as in the preceding group.
--------------------------------------------------------------------------------
SP-3    MIG-3; VMIG-3   Notes are of favorable quality with all security
                        elements accounted for, but lacking the undeniable
                        strength of the preceding grades. Market access for
                        refinancing, in particular, is likely to be less well
                        established.
--------------------------------------------------------------------------------
SP-4    MIG-4; VMIG-4   Notes are of adequate quality carrying specific risk but
                        having protection and not distinctly or predominantly
                        speculative.
--------------------------------------------------------------------------------


                                                                           59


MORE INFORMATION ABOUT THE FUNDS IS CONTAINED IN THESE DOCUMENTS

Annual and Semiannual Reports

Annual and semiannual reports contain more information about the funds'
investments and the market conditions and investment strategies that
significantly affected the funds' performance during the most recent fiscal
period.

You can receive a free copy of the annual and semiannual reports, and ask
questions about the funds and your accounts, by contacting American Century at
the address or telephone numbers listed below.

If you own or are considering purchasing fund shares through

* an employer-sponsored retirement plan
* a bank
* a broker-dealer
* an insurance company
* another financial intermediary

you can receive the annual and semiannual reports directly from them.

You also can get information about the funds from the Securities and Exchange
Commission (SEC). The SEC charges a duplicating fee to provide copies of this
information.

In person        SEC Public Reference Room
                 Washington, D.C.
                 Call 202-942-8090 for location and hours.

On the Internet  * EDGAR database at www.sec.gov
                 * By email request at publicinfo@sec.gov

By mail          SEC Public Reference Section
                 Washington, D.C. 20549-0102

Investment Company Act File No. 811-6247

[american century logo and text logo (reg. sm)]

AMERICAN CENTURY INVESTMENTS
P.O. Box 419200
Kansas City, Missouri 64141-6200

INVESTOR RELATIONS
1-800-345-2021 or 816-531-5575

AUTOMATED INFORMATION LINE
1-800-345-8765

WWW.AMERICANCENTURY.COM

FAX
816-340-7962

TELECOMMUNICATIONS DEVICE FOR THE DEAF
1-800-634-4113 or 816-444-3485

BUSINESS; NOT-FOR-PROFIT AND
EMPLOYER-SPONSORED RETIREMENT PLANS
1-800-345-3533


SH-SAI-34922 0308






















PART C    OTHER INFORMATION

ITEM 23.  Exhibits (all exhibits not filed herewith are being incorporated
          herein by reference).

(a)       (1) Articles of  Incorporation  of Twentieth  Century World Investors,
          Inc., dated December 27, 1990 (filed  electronically  as an Exhibit to
          Post-Effective  Amendment No. 6 to the  Registration  Statement of the
          Registrant on March 29, 1996, File No. 33-39242).

          (2) Articles of Amendment of Twentieth Century World Investors,  Inc.,
          dated  August  10,  1993  (filed   electronically  as  an  Exhibit  to
          Post-Effective  Amendment No. 9 to the  Registration  Statement of the
          Registrant on March 30, 1998, File No. 33-39242).

          (3) Articles Supplementary of Twentieth Century World Investors, Inc.,
          dated  November  8,  1993  (filed  electronically  as  an  Exhibit  to
          Post-Effective  Amendment No. 6 to the  Registration  Statement of the
          Registrant on March 29, 1996, File No. 33-39242).

          (4) Articles Supplementary of Twentieth Century World Investors, Inc.,
          dated  April  24,  1995  (filed   electronically   as  an  Exhibit  to
          Post-Effective  Amendment No. 6 to the  Registration  Statement of the
          Registrant on March 29, 1996, File No. 33-39242).

          (5) Articles Supplementary of Twentieth Century World Investors, Inc.,
          dated   March  11,  1996  filed   electronically   as  an  Exhibit  to
          Post-Effective  Amendment No. 7 to the  Registration  Statement of the
          Registrant on June 13, 1996, File No. 33-9242).

          (6) Articles Supplementary of Twentieth Century World Investors, Inc.,
          dated  September  9,  1996  (filed  electronically  as an  Exhibit  to
          Post-Effective  Amendment No. 9 to the  Registration  Statement of the
          Registrant on March 30, 1998, File No. 33-39242).

          (7) Articles of Amendment of Twentieth Century World Investors,  Inc.,
          dated  December  2,  1996  (filed  electronically  as  an  Exhibit  to
          Post-Effective  Amendment No. 8 to the  Registration  Statement of the
          Registrant on March 31, 1997, File No. 33-39242).

          (8) Articles  Supplementary  of American  Century  World Mutual Funds,
          Inc.,  dated December 2, 1996 (filed  electronically  as an Exhibit to
          Post-Effective  Amendment No. 8 to the  Registration  Statement of the
          Registrant on March 31, 1997, File No. 33-39242).

          (9) Articles  Supplementary  of American  Century  World Mutual Funds,
          Inc., dated November 13, 1998 (filed  electronically  as an Exhibit to
          Post-Effective  Amendment No. 12 to the Registration  Statement of the
          Registrant on November 13, 1998, File No. 33-39242).

          (10) Articles  Supplementary  of American  Century World Mutual Funds,
          Inc., dated February 16, 1999 (filed  electronically  as an Exhibit to
          Post-Effective  Amendment No. 15 to the Registration  Statement of the
          Registrant on March 31, 1999, File No. 33-39242).

          (11) Articles  Supplementary  of American  Century World Mutual Funds,
          Inc.,  dated May 22,  2000  (filed  electronically  as an  Exhibit  to
          Post-Effective  Amendment No. 19 to the Registration  Statement of the
          Registrant on May 24, 2000, File No. 33-39242).

          (12) Articles  Supplementary  of American  Century World Mutual Funds,
          Inc., dated October 18, 2000 (filed  electronically  as Exhibit a12 to
          Post-Effective  Amendment No. 25 to the Registration  Statement of the
          Registrant on March 28, 2002, File No. 33-39242).

          (13) Articles  Supplementary  of American  Century World Mutual Funds,
          Inc.,  dated  March 5, 2001  (filed  electronically  as Exhibit a13 to
          Post-Effective  Amendment No. 24 to the Registration  Statement of the
          Registrant on April 19, 2001, File No. 33-39242).

          (14) Articles  Supplementary  of American  Century World Mutual Funds,
          Inc.,  dated May 21,  2001  (filed  electronically  as Exhibit  a14 to
          Post-Effective  Amendment No. 25 to the Registration  Statement of the
          Registrant on March 28, 2002, File No. 33-39242).

          (15) Articles  Supplementary  of American  Century World Mutual Funds,
          Inc.,  dated June 14,  2002  (filed  electronically  as Exhibit a15 to
          Post-Effective  Amendment No. 27 to the Registration  Statement of the
          Registrant on October 10, 2002, File No. 33-39242).

          (16) Articles  Supplementary  of American  Century World Mutual Funds,
          Inc., dated August 14, 2003, are included herein.

(b)       (1)  By-Laws  of  Twentieth  Century  World  Investors,   Inc.  (filed
          electronically as Exhibit b1 to Post-Effective  Amendment No. 6 to the
          Registration  Statement of the Registrant on March 29, 1996,  File No.
          33-39242).

          (2) Amendment to the By-Laws of American  Century Mutual Funds,  Inc.,
          American  Century Capital  Portfolios,  Inc.,  American  Century World
          Mutual Funds, Inc. and American Century  Strategic Asset  Allocations,
          Inc. (filed electronically as Exhibit b2b to Post-Effective  Amendment
          No.  9 to the  Registration  Statement  of  American  Century  Capital
          Portfolios, Inc. on February 17, 1998, File No. 33-64872).

(c)       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
          (a)(1)  to  Post-  Effective  Amendment  No.  6 on  Form  N-1A  of the
          Registrant,  and Article Fifth of Registrant's  Articles of Amendment,
          appearing as Exhibit (a)(2) to Post-Effective  Amendment No. 9 on Form
          N-1A of the  Registrant,  to the  Registration  Statement on March 30,
          1998;  and  Sections  3, 4, 5, 6, 7, 8, 9, 10, 11, 22, 24, 25, 30, 31,
          33, 39, 40, 45 and 46 of  Registrant's  By-Laws  appearing  as Exhibit
          (b)(1) to  Post-Effective  Amendment No. 6 on Form N-1A,  and Sections
          25, 30 & 31 of  Registrant's  By-Laws  appearing as Exhibit  (b)(2) to
          Post-Effective  Amendment  No.  9 on  Form  N-1A of  American  Century
          Capital Portfolios, Inc., File No. 33-64872.

(d)       (1) Management  Agreement between American Century World Mutual Funds,
          Inc. and American Century Investment Management, Inc., dated August 1,
          1997 (filed  electronically as an Exhibit to Post-Effective  Amendment
          No. 12 to the Registration Statement of the Registrant on November 13,
          1998, File No. 33-39242).

          (2) Addendum to the  Management  Agreement  between  American  Century
          World Mutual Funds, Inc. and American Century  Investment  Management,
          Inc.,  dated December 1, 1998 (filed  electronically  as an Exhibit to
          Post-Effective  Amendment No. 15 to the Registration  Statement of the
          Registrant on March 31, 1999, File No. 33-39242).

          (3) Addendum to the  Management  Agreement  between  American  Century
          World Mutual Funds, Inc. and American Century  Investment  Management,
          Inc., dated as of June 1, 2000 (filed  electronically as an Exhibit to
          Post-Effective  Amendment No. 19 to the Registration  Statement of the
          Registrant on May 24, 2000, File No. 33-39242).

          (4) Addendum to the  Management  Agreement  between  American  Century
          World Mutual Funds, Inc. and American Century  Investment  Management,
          Inc.,  dated  May 1,  2001  (filed  electronically  as  Exhibit  d4 to
          Post-Effective  Amendment No. 24 to the Registration  Statement of the
          Registrant on April 19, 2001, File No. 33-39242).

          (5) Addendum to the  Management  Agreement  between  American  Century
          World Mutual Funds, Inc. and American Century  Investment  Management,
          Inc., dated September 3, 2002 (filed  electronically  as Exhibit d5 to
          Post-Effective  Amendment No. 27 to the Registration  Statement of the
          Registrant on October 10, 2002, File No. 33-39242).

          (6) Addendum to the  Management  Agreement  between  American  Century
          World Mutual Funds, Inc. and American Century  Investment  Management,
          Inc., dated August 29, 2003, is included herein.

(e)       (1) Amended  and  Restated  Distribution  Agreement  between  American
          Century  California  Tax-Free and Municipal  Funds,  American  Century
          Capital  Portfolios,  Inc.,  American Century Government Income Trust,
          American Century International Bond Funds, American Century Investment
          Trust,  American  Century  Municipal  Trust,  American  Century Mutual
          Funds,  Inc.,  American Century  Quantitative  Equity Funds,  American
          Century  Strategic Asset  Allocations,  Inc.,  American Century Target
          Maturities Trust, American Century Variable Portfolios, Inc., American
          Century  Variable  Portfolios II, Inc.,  American Century World Mutual
          Funds,  Inc. and American  Century  Investment  Services,  Inc., dated
          September   3,  2002   (filed   electronically   as   Exhibit   e1  to
          Post-Effective  Amendment  No.  35 to the  Registration  Statement  of
          American  Century  Municipal  Trust on September  30,  2002,  File No.
          2-91229).

          (2) Amendment No. 1 to the Amended and Restated Distribution Agreement
          between  American  Century  California  Tax-Free and Municipal  Funds,
          American Century Capital Portfolios, Inc., American Century Government
          Income Trust,  American  Century  International  Bond Funds,  American
          Century Investment Trust,  American Century Municipal Trust,  American
          Century  Mutual Funds,  Inc.,  American  Century  Quantitative  Equity
          Funds,  American Century Strategic Asset Allocations,  Inc.,  American
          Century Target Maturities Trust, American Century Variable Portfolios,
          Inc.,  American Century Variable Portfolios II, Inc., American Century
          World Mutual Funds,  Inc. and American  Century  Investment  Services,
          Inc., dated December 31, 2002 (filed  electronically  as Exhibit e2 to
          Post-Effective  Amendment  No.  4 to  the  Registration  Statement  of
          American  Century  Variable  Portfolios II, Inc. on December 20, 2002,
          File No. 333-46922).

          (3) Amendment No. 2 to the Amended and Restated Distribution Agreement
          between  American  Century  California  Tax-Free and Municipal  Funds,
          American Century Capital Portfolios, Inc., American Century Government
          Income Trust,  American  Century  International  Bond Funds,  American
          Century Investment Trust,  American Century Municipal Trust,  American
          Century  Mutual Funds,  Inc.,  American  Century  Quantitative  Equity
          Funds,  American Century Strategic Asset Allocations,  Inc.,  American
          Century Target Maturities Trust, American Century Variable Portfolios,
          Inc.,  American Century Variable Portfolios II, Inc., American Century
          World Mutual Funds,  Inc. and American  Century  Investment  Services,
          Inc.,  dated  August 29, 2003 (filed  electronically  as Exhibit e3 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).

(f)       Not applicable.

(g)       (1) Master Agreement by and between Twentieth  Century Services,  Inc.
          and 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).

          (2) Global Custody Agreement between American Century  Investments and
          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).

          (3) Amendment to the Global Custody Agreement between American Century
          Investments  and 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).

          (4)   Supplemental   Agreement   by  and  between   American   Century
          International  Discovery Fund,  American Century Emerging Markets Fund
          and American  Century Global Growth Fund and The Chase Manhattan Bank,
          dated  July  30,   1999  (filed   electronically   as  an  Exhibit  to
          Post-Effective  Amendment No. 16 to the Registration  Statement of the
          Registrant on March 10, 2000, File No. 33-39242).

          (5) Supplemental  Agreement by and between American Century  Strategic
          Allocation  Aggressive  Fund,  American Century  Strategic  Allocation
          Moderate Fund,  American Century Global Growth Fund,  American Century
          International Growth Fund and The Chase Manhattan Bank, dated February
          1,  2000  (filed   electronically  as  Exhibit  h4  to  Post-Effective
          Amendment No. 23 to the  Registration  Statement of the  Registrant on
          March 14, 2001, File No. 33-39242).

(h)       (1) Transfer Agency Agreement by and between  Twentieth  Century World
          Investors,  Inc. and Twentieth  Century  Services,  Inc.,  dated as of
          March 1, 1991 (filed  electronically  as an Exhibit to  Post-Effective
          Amendment  No. 6 to the  Registration  Statement of the  Registrant on
          March 29, 1996, File No. 33-39242).

          (2) Credit Agreement between American Century Funds and JPMorgan Chase
          Bank, as  Administrative  Agent,  dated as of December 17, 2002 (filed
          electronically as Exhibit h8 to Post-Effective  Amendment No. 4 to the
          Registration  Statement of American  Century  Variable  Portfolios II,
          Inc. on December 20, 2002, File No. 333-46922).

(i)       Opinion and Consent of Counsel (filed  electronically  as Exhibit i to
          Post-Effective  Amendment No. 20 to the Registration  Statement of the
          Registrant on December 1, 2000, File No. 33-39242).

(j)       (1) Consent of Deloitte & Touche LLP is included herein.

          (2) Power of Attorney,  dated November 15, 2002 (filed  electronically
          as Exhibit j2 to  Post-Effective  Amendment No. 99 to the Registration
          Statement of American Century Mutual Funds, Inc. on December 17, 2002,
          File No. 2-14213).

          (3)   Secretary's   Certificate,   dated   November  25,  2002  (filed
          electronically as Exhibit j3 to Post-Effective Amendment No. 99 to the
          Registration  Statement  of American  Century  Mutual  Funds,  Inc. on
          December 17, 2002, File No. 2-14213).

(k)       Not applicable.

(l)       Not applicable.

(m)       (1) Master  Distribution  and  Shareholder  Services Plan of Twentieth
          Century Capital Portfolios,  Inc., Twentieth Century Investors,  Inc.,
          Twentieth  Century  Strategic  Asset  Allocations,  Inc. and Twentieth
          Century World Investors, Inc. (Advisor Class), dated September 3, 1996
          (filed electronically as Exhibit b15a to Post-Effective  Amendment No.
          9  to  the   Registration   Statement  of  American   Century  Capital
          Portfolios, Inc. on February 17, 1998, File No. 33-64872).

          (2)  Amendment  No.  1 to  the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocations,  Inc.  and American  Century  World  Mutual  Funds,  Inc.
          (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).

          (3)  Amendment  No.  2 to  the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocations,  Inc.  and American  Century  World  Mutual  Funds,  Inc.
          (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).

          (4)  Amendment  No.  3 to  the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocations,  Inc.,  and American  Century  World Mutual  Funds,  Inc.
          (Advisor Class), dated June 30, 1998 (filed  electronically as Exhibit
          b15e to Post-Effective  Amendment No. 11 to the Registration Statement
          of American  Century Capital  Portfolios,  Inc. on June 26, 1998, File
          No. 33-64872).

          (5)  Amendment  No.  4 to  the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocations,  Inc.,  and American  Century  World Mutual  Funds,  Inc.
          (Advisor  Class),  dated  November 13, 1998 (filed  electronically  as
          Exhibit b15e to  Post-Effective  Amendment No. 12 to the  Registration
          Statement of the Registrant on November 13, 1998, File No. 33-39242).

          (6)  Amendment  No.  5 to  the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocations,  Inc.  and American  Century  World  Mutual  Funds,  Inc.
          (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).

          (7)  Amendment  No.  6 to  the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocations,  Inc.  and American  Century  World  Mutual  Funds,  Inc.
          (Advisor Class), dated July 30, 1999 (filed  electronically as Exhibit
          m7 to Post-Effective Amendment No. 16 to the Registration Statement of
          American Century Capital  Portfolios,  Inc. on July 29, 1999, File No.
          33-64872).

          (8)  Amendment  No.  7 to  the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocations,  Inc.  and American  Century  World  Mutual  Funds,  Inc.
          (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).

          (9)  Amendment  No.  8 to  the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocation,  Inc.  and  American  Century  World  Mutual  Funds,  Inc.
          (Advisor Class),  dated June 1, 2000 (filed  electronically as Exhibit
          m9 to Post-Effective Amendment No. 19 to the Registration Statement of
          the Registrant on May 24, 2000, File No. 33-39242).

          (10)  Amendment  No.  9 to the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocations,  Inc.  and American  Century  World  Mutual  Funds,  Inc.
          (Advisor Class), dated April 30, 2001 (filed electronically as Exhibit
          m10 to Post-Effective  Amendment No. 24 to the Registration  Statement
          of the Registrant on April 19, 2001, File No. 33-39242).

          (11)  Amendment  No. 10 to the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocations,  Inc.  and American  Century  World  Mutual  Funds,  Inc.
          (Advisor  Class),  dated  December  3, 2001 (filed  electronically  as
          Exhibit m11 to  Post-Effective  Amendment  No. 94 to the  Registration
          Statement of American Century Mutual Funds, Inc. on December 13, 2001,
          File No. 2-14213).

          (12)  Amendment  No. 11 to the  Master  Distribution  and  Shareholder
          Services Plan of American Century Capital  Portfolios,  Inc., American
          Century  Mutual  Funds,   Inc.,   American  Century   Strategic  Asset
          Allocations,  Inc.  and American  Century  World  Mutual  Funds,  Inc.
          (Advisor  Class),  dated  September 3, 2002 (filed  electronically  as
          Exhibit m12 to  Post-Effective  Amendment  No. 26 to the  Registration
          Statement of the Registrant on October 1, 2002, File No. 33-39242).

          (13) Master Distribution and Individual  Shareholder  Services Plan of
          American  Century Capital  Portfolios,  Inc.,  American Century Mutual
          Funds, Inc.,  American Century Strategic Asset  Allocations,  Inc. and
          American  Century World Mutual Funds,  Inc. (C Class),  dated March 1,
          2001 (filed electronically as Exhibit m11 to Post-Effective  Amendment
          No. 24 to the  Registration  Statement of the  Registrant on April 19,
          2001, File No. 33-39242).

          (14)  Amendment  No.  1 to  the  Master  Distribution  and  Individual
          Shareholder  Services  Plan of American  Century  Capital  Portfolios,
          Inc.,  American Century Mutual Funds, Inc., American Century Strategic
          Asset Allocations,  Inc. and American Century World Mutual Funds, Inc.
          (C Class),  dated April 30, 2001 (filed  electronically as Exhibit m12
          to  Post-Effective  Amendment No. 24 to the Registration  Statement of
          the Registrant on April 19, 2001, File No. 33-39242).

          (15)  Amendment  No.  2 to  the  Master  Distribution  and  Individual
          Shareholder  Services  Plan of American  Century  Capital  Portfolios,
          Inc.,  American Century Mutual Funds, Inc., American Century Strategic
          Asset Allocations,  Inc. and American Century World Mutual Funds, Inc.
          (C Class),  dated September 3, 2002 (filed  electronically  as Exhibit
          m15 to Post-Effective  Amendment No. 27 to the Registration  Statement
          of the Registrant on October 10, 2002, File No. 33-39242).

          (16) Master Distribution and Individual  Shareholder  Services Plan of
          American  Century World Mutual Funds,  Inc.,  American  Century Mutual
          Funds,  Inc.,  American  Century Capital  Portfolios,  Inc.,  American
          Century  Investment  Trust,   American  Century  Municipal  Trust  and
          American  Century  California  Tax-Free and Municipal  Funds (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).

          (17) Master Distribution and Individual  Shareholder  Services Plan of
          American  Century World Mutual Funds,  Inc.,  American  Century Mutual
          Funds,  Inc.,  American  Century Capital  Portfolios,  Inc.,  American
          Century  Investment  Trust,   American  Century  Municipal  Trust  and
          American  Century  California  Tax-Free and Municipal  Funds (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).

          (18) Master Distribution and Individual  Shareholder  Services Plan of
          American  Century  Mutual  Funds,   Inc.,   American  Century  Capital
          Portfolios, Inc., American Century Quantitative Equity Funds, American
          Century World Mutual Funds,  Inc. and American Century Strategic Asset
          Allocations,   Inc.   (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).

(n)       (1)  Amended and  Restated  Multiple  Class Plan of  American  Century
          Capital  Portfolios,   Inc.,  American  Century  Mutual  Funds,  Inc.,
          American Century Strategic Asset Allocations,  Inc.,  American Century
          World Mutual Funds,  Inc.,  American Century  California  Tax-Free and
          Municipal Funds,  American Century  Government Income Trust,  American
          Century Investment Trust,  American Century  International Bond Funds,
          American Century Municipal Trust, American Century Quantitative Equity
          Funds and American Century Target Maturities Trust, 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).

          (2) Amendment No. 1 to the Amended and Restated Multiple Class Plan of
          American Century  California  Tax-Free and Municipal  Funds,  American
          Century Government Income Trust,  American Century  International Bond
          Funds,  American Century Investment Trust,  American Century Municipal
          Trust,  American Century Target  Maturities Trust and American Century
          Quantitative Equity Funds,  American Century Capital Portfolios,  Inc,
          American Century Mutual Funds, Inc.,  American Century Strategic Asset
          Allocations, Inc, and American Century World Mutual Funds, Inc., 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).

          (3) Amendment No. 2 to the Amended and Restated Multiple Class Plan of
          American Century  California  Tax-Free and Municipal  Funds,  American
          Century Government Income Trust,  American Century  International Bond
          Funds,  American Century Investment Trust,  American Century Municipal
          Trust,  American Century Target  Maturities Trust and American Century
          Quantitative Equity Funds,  American Century Capital Portfolios,  Inc,
          American Century Mutual Funds, Inc.,  American Century Strategic Asset
          Allocations, Inc, and American Century World Mutual Funds, Inc., 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).

(o)       Not applicable.

(p)       American Century  Investments Code of Ethics (filed  electronically as
          Exhibit  p 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).


ITEM 24   Persons Controlled by or Under Common Control with Registrant - None.

ITEM 25   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 26   Business and Other Connections of Investment Advisor.

          None.

ITEM 27   Principal Underwriter.

I.  (a) American Century Investment Services, Inc. (ACIS) acts as principal
underwriter for the following investment companies:

American Century California Tax-Free and Municipal Funds
American Century Capital Portfolios, Inc.
American Century Government Income Trust
American Century International Bond Funds
American Century Investment Trust
American Century Municipal Trust
American Century Mutual Funds, Inc.
American Century Quantitative Equity Funds
American Century Strategic Asset Allocations, Inc.
American Century Target Maturities Trust
American Century Variable Portfolios, Inc.
American Century Variable Portfolios II, Inc.
American Century World Mutual Funds, Inc.

          ACIS is registered  with the Securities  and Exchange  Commission as a
broker-dealer and is a member of the National Association of Securities Dealers.
ACIS is located at 4500 Main Street,  Kansas  City,  Missouri  64111.  ACIS is a
wholly-owned subsidiary of American Century Companies, Inc.

          (b) The following is a list of the directors, executive officers and
partners of ACIS:

Name and Principal     Positions and Offices       Positions and Offices
Business Address*        with Underwriter           with Registrant
---------------------------------------------------------------------

James E. Stowers, Jr.  Chairman and Director           Chairman and
                                                       Director

James E. Stowers III   Co-Chairman and Director        Director

William M. Lyons       President, Chief Executive      President
                       Officer and Director

Robert T. Jackson      Executive Vice President,       Executive Vice
                       Chief Financial Officer         President
                       and Chief Accounting Officer

Joseph Greene          Senior Vice President           none

Brian Jeter            Senior Vice President           none

Mark Killen            Senior Vice President           none

Dave Larrabee          Senior Vice President           none

Barry Mayhew           Senior Vice President           none

David C. Tucker        Senior Vice President           Senior Vice
                       and General Counsel             President


* All addresses are 4500 Main Street, Kansas City, Missouri 64111

     (c) Not applicable.


ITEM 28   Location of Accounts and Records.

          All accounts,  books and other documents  required to be maintained by
Section 31(a) of the 1940 Act, and the rules promulgated thereunder,  are in the
possession of Registrant,  American  Century  Services  Corporation and American
Century Investment Management, Inc., all located at American Century Tower, 4500
Main Street, Kansas City, Missouri 64111.

ITEM 29. Management Services.

          Not Applicable.

ITEM 30   Undertakings.

          Not applicable.





















                                   SIGNATURES

     Pursuant  to  the  requirements  of the  Securities  Act of  1933  and  the
Investment  Company Act of 1940, the  Registrant  certifies that it meets all of
the requirements for  effectiveness  of this  Registration  Statement under Rule
485(b) under the  Securities  Act and has duly caused this  Amendment  No. 31 to
this Registration Statement to be signed on its behalf by the undersigned,  duly
authorized,  in the City of Kansas  City,  State of  Missouri on the 28th day of
August, 2003.

                              American Century World Mutual Funds, Inc.
                              (Registrant)

                              By: /*/William M. Lyons
                              William M. Lyons
                              President and Principal Executive Officer

     Pursuant  to  the   requirements  of  the  Securities  Act  of  1933,  this
Post-Effective  Amendment No. 31 has been signed below by the following  persons
in the capacities and on the dates indicated.

Signature                   Title                              Date
---------                   -----                              ----

*William M. Lyons       President                      August 28, 2003
William M. Lyons        and Principal Executive Officer

*Maryanne Roepke        Senior Vice President,         August 28, 2003
Maryanne Roepke         Treasurer and Chief
                        Accounting Officer

*James E. Stowers, Jr.  Chairman of the Board and      August 28, 2003
James E. Stowers, Jr.   Director

*James E. Stowers III    Director                      August 28, 2003
James E. Stowers III

*Thomas A. Brown         Director                      August 28, 2003
Thomas A. Brown

*Andrea C. Hall, Ph.D.   Director                      August 28, 2003
Andrea C. Hall, Ph.D.

*D. D. (Del) Hock        Director                      August 28, 2003
D. D. (Del) Hock

*Donald H. Pratt         Director                      August 28, 2003
Donald H. Pratt

*Gale E. Sayers          Director                      August 28, 2003
Gale E. Sayers

*M. Jeannine Strandjord  Director                      August 28, 2003
M. Jeannine Strandjord

*Timothy S. Webster      Director                      August 28, 2003
Timothy S. Webster

*By /s/Charles A. Etherington
     Charles A. Etherington
    Attorney-in-Fact