N-CSRS

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM N-CSR
                   CERTIFIED SHAREHOLDER REPORT OF REGISTERED
                         MANAGEMENT INVESTMENT COMPANIES



Investment Company Act file number  811-10155
                                  ----------------------------------------------



                 AMERICAN CENTURY VARIABLE PORTFOLIOS II, INC.
- --------------------------------------------------------------------------------
               (Exact name of registrant as specified in charter)



4500 MAIN STREET, KANSAS CITY, MISSOURI                                   64111
- --------------------------------------------------------------------------------
(Address of principal executive offices)                             (Zip code)



      CHARLES A. ETHERINGTON, 4500 MAIN STREET, KANSAS CITY, MISSOURI 64111
- --------------------------------------------------------------------------------
                    (Name and address of agent for service)


Registrant's telephone number, including area code:  816-531-5575
                                                   -----------------------------

Date of fiscal year end:  12-31
                        --------------------------------------------------------

Date of reporting period:  06-30-2007
                         -------------------------------------------------------

ITEM 1.  REPORTS TO STOCKHOLDERS.

[front cover]

AMERICAN CENTURY VARIABLE PORTFOLIOS II

Semiannual Report               June 30, 2007

VP Inflation Protection Fund

[photo of summer]

[american century investments logo and text logo]




[blank page]




TABLE OF CONTENTS

     Market Perspective. . . . . . . . . . . . . . . . . . . . . . .. .       2
      U.S. Fixed-Income Total Returns. . . . . . . . . . . . . . . .. .       2

VP?INFLATION PROTECTION

     Performance. . . . . . . . . . . . . . . . . . . . . . . . . .  .        3
     Portfolio Commentary . . . . . . . . . . . . . . . . . . . . .  .        5
      Asset Allocation. . . . . . . . . . . . . . . . . . . . . . .  .        5
      Portfolio at a Glance . . . . . . . . . . . . . . . . . . . .  .        6
     Shareholder Fee Example. . . . . . . . . . . . . . . . . . . .  .        7
     Schedule of Investments. . . . . . . . . . . . . . . . . . . .  .        8

FINANCIAL STATEMENTS

     Statement of Assets and Liabilities. . . . . . . . . . . . . .  .       13
     Statement of Operations. . . . . . . . . . . . . . . . . . . .  .       14
     Statement of Changes in Net Assets . . . . . . . . . . . . . .  .       15
     Notes to Financial Statements. . . . . . . . . . . . . . . . .  .       16
     Financial Highlights . . . . . . . . . . . . . . . . . . . . .  .       20

OTHER INFORMATION

     Approval of Management Agreement for VP Inflation Protection. .. .      22
     Share Class Information . . . . . . . . . . . . . . . . . . . .. .      26
     Additional Information. . . . . . . . . . . . . . . . . . . . .. .      27
     Index Definitions . . . . . . . . . . . . . . . . . . . . . . .. .      28

The opinions expressed in the Market Perspective and the Portfolio Commentary
reflect those of the portfolio management team as of the date of the report,
and do not necessarily represent the opinions of American Century or any other
person in the American Century organization. Any such opinions are subject to
change at any time based upon market or other conditions and American Century
disclaims any responsibility to update such opinions. These opinions may not
be relied upon as investment advice and, because investment decisions made by
American Century funds are based on numerous factors, may not be relied upon
as an indication of trading intent on behalf of any American Century fund.
Security examples are used for representational purposes only and are not
intended as recommendations to purchase or sell securities. Performance
information for comparative indices and securities is provided to American
Century by third party vendors. To the best of American Century's knowledge,
such information is accurate at the time of printing.




MARKET PERSPECTIVE

[photo of Chief Investment Officer]

By David MacEwen, Chief Investment Officer, Fixed Income

MUTED BOND RETURNS

As the accompanying table shows, U.S. bonds produced modest results during the
six months ended June 30, 2007, when rising interest rates and bond market
volatility combined to limit fixed-income returns. Although the U.S. economy
slowed markedly in the first quarter of the year, growing at an annual rate of
just 0.6% (the lowest growth rate since the fourth quarter of 2002), it showed
signs of improvement in the second quarter. In addition, the Federal Reserve
(the Fed) held short-term interest rates steady, maintaining a policy shift
that occurred in mid-2006.

The yield curve (a graphic representation of bond yields at different
maturities) rose and steepened in the six months. As a result, intermediate-
to long-term notes and bonds produced negative returns. In addition,
volatility in the bond market reached a two-year high, as the yield on the
benchmark 10-year Treasury note rose from 4.71% to a high of 5.30% in June
before finishing at 5.03%. This volatility negatively affected the relative
returns of the bond market's securitized sector (mostly mortgage- and
asset-backed securities) -- mortgage-backed securities tend to perform better
versus other bond sectors when interest rates are relatively stable.

TIPS OUTPERFORMED

TIPS produced modest absolute returns, but outperformed the broader
investment-grade bond market for the six months, as the Citigroup US
Inflation-Linked Securities Index rose 1.66%. However, inflation readings --
and demand for inflation-protected assets -- moderated over the last several
months of the period.

Looking at inflation overall, the consumer price index (CPI) ran at a 2.7%
pace for the 12 months ended June 30, 2007. But excluding volatile food and
energy prices, the so-called "core" CPI figure was 2.1% for the 12 months
ended in June, down from 2.5% just a few months earlier. Meanwhile, the Fed's
preferred band for core inflation is 1-2%.

Against that backdrop, breakeven rates (representing the yield gap between
TIPS and traditional Treasurys, and used as a measure of long-term inflation
expectations) widened modestly. When breakevens increase, TIPS outperform
traditional Treasurys.

U.S. Fixed-Income Total Returns
For the six months ended June 30, 2007*

CITIGROUP BOND MARKET INDICES
Citigroup US Broad Investment-Grade Bond Index        0.89%
Citigroup US Inflation-Linked Securities Index        1.66%

TREASURY BELLWETHERS
3-Month Treasury Bill                                 2.56%
10-Year Treasury Note                                -0.46%

*Total returns for periods less than one year are not annualized.


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2


PERFORMANCE
VP Inflation Protection

Total Returns as of June 30, 2007
                                                            Average
                                                             Annual
                                                            Returns

                                                             Since      Inception
                                     6 months(1)  1 year   Inception       Date

CLASS II                                1.20%     3.58%     3.49%(2)     12/31/02

CITIGROUP US INFLATION-LINKED
SECURITIES INDEX(3)(4)                  1.66%     3.93%      4.75%          --

BLENDED INDEX(5)                        1.71%     4.70%      3.99%          --

Class I                                 1.22%     3.79%      3.89%        5/7/04

(1)  Total returns for periods less than one year are not annualized.

(2)  The total return for Class II would have been lower if the distribution fee
     had not been waived from December 31, 2002 to March 31, 2003.

(3)  The Citigroup US Inflation-Linked Securities Index is not subject to the
     tax code diversification and other regulatory requirements limiting the
     type and amount of securities that the fund may own.

(4)  In June of 2007, the fund's benchmark changed from the Blended index to the
     Citigroup US Inflation-Linked Securities Index. The fund's investment
     advisor believes this index better represents the fund's portfolio
     composition.

(5)  See Index Definitions page.

The performance information presented does not include charges and deductions
imposed by the insurance company separate account under the variable annuity
or variable life insurance contracts. The inclusion of such charges could
significantly lower performance. Please refer to the insurance company
separate account prospectus for a discussion of the charges related to
insurance contracts.

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-6488. As
interest rates rise, bond values will decline.

Unless otherwise indicated, performance reflects Class II shares; performance
for other share classes will vary due to differences in fee structure. For
information about other share classes available, please consult the
prospectus. Data assumes reinvestment of dividends and capital gains, and none
of the charts reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. Returns for the indices
are provided for comparison. The fund's total returns include operating
expenses (such as transaction costs and management fees) that reduce returns,
while the total returns of the indices do not.


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3


VP Inflation Protection

Growth of $10,000 Over Life of Class


$10,000 investment made December 31, 2002

One-Year Returns Over Life of Class
Periods ended June 30
                                       2003*      2004     2005     2006      2007

Class II                              4.89%**    1.51%     6.86%   -1.00%    3.58%

Citigroup US Inflation-Linked
Securities Index                       6.15%     3.91%     9.30%   -1.68%    3.93%

Blended index                          4.16%     2.69%     6.83%   -0.32%    4.70%

*From 12/31/02, Class II's inception date. Not annualized.

**Returns would have been lower, along with ending value, if distribution
  fees had not been waived from 12/31/02 to 3/31/03.

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-6488. As
interest rates rise, bond values will decline.

Unless otherwise indicated, performance reflects Class II shares; performance
for other share classes will vary due to differences in fee structure. For
information about other share classes available, please consult the
prospectus. Data assumes reinvestment of dividends and capital gains, and none
of the charts reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. Returns for the indices
are provided for comparison. The fund's total returns include operating
expenses (such as transaction costs and management fees) that reduce returns,
while the total returns of the indices do not.


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4


PORTFOLIO COMMENTARY
VP Inflation Protection

Portfolio Managers: Jeremy Fletcher, Seth Plunkett, and Bob Gahagan

PERFORMANCE SUMMARY

VP Inflation Protection returned 1.22%* for the six months ended June 30,
2007. By comparison, the portfolio's new benchmark, the Citigroup US
Inflation-Linked Securities Index, returned 1.66%. The old benchmark -- a
combination of the Citigroup US Inflation-Linked Securities, 1- to 3-Year
Government Sponsored, and 15-Year Mortgage Indices -- returned 1.71%. We
changed the benchmark in June, believing the new benchmark more closely fit
the portfolio's investment objective and composition, and was easier for
shareholders to understand and follow.

The portfolio's absolute return reflected the difficult investment climate for
bonds as a whole, particularly in the second quarter of 2007 (see the Market
Perspective on page 2). Relative to the new benchmark, our yield-curve
positioning helped performance, while security selection detracted. Our
duration, or interest rate sensitivity, made a slight positive contribution.

PORTFOLIO POSITIONING

Looking at the portfolio's interest rate sensitivity, we prefer to keep it in
a narrow band around the benchmark and make small, tactical adjustments to
duration. As a result, we kept portfolio duration neutral to slightly short of
the index's as rates rose in May and June. So in absolute terms, rising rates
limited portfolio performance, but in relative terms, our duration position
had a slight positive effect on returns compared with the benchmark.

Rather than make big bets on the direction of interest rates, we prefer to use
a relative value approach to investing, looking for securities that we believe
offer attractive risk and return characteristics. This means we often put our
investment capital to work in bonds we see trading at attractive valuations or
temporarily depressed levels. This process led us to add an odd-lot position
in Ginnie Mae inflation-linked securities trading at what we believed to be
attractive prices, as well as Federal Judiciary Office Bonds, which--like
Ginnie Mae securities--offer Treasury-equivalent credit quality. Similarly, we
made a duration-neutral trade out of bonds maturing in 12 years into 10- and
14-year securities, where we saw better values.

Asset Allocation
                                  % of         % of
                               net assets   net assets
                                  as of        as of
                                 6/30/07     12/31/06

U.S. Treasury Securities
& Equivalents                     55.4%        55.9%

Collateralized
Mortgage Obligations              17.5%        9.1%

Corporate Bonds                   9.9%         10.3%

U.S. Government
Agency Securities                 7.1%         13.0%

U.S. Government
Agency Mortgage-
Backed Securities                 4.1%         5.6%

Zero-Coupon U.S. Treasury
Securities & Equivalents          1.9%         2.2%

Zero-Coupon
U.S. Government
Agency Securities                 1.8%         3.6%

Asset-Backed Securities           0.3%         1.0%

Cash and Equivalents(1)           2.0%        (0.7)%

(1) Includes Commercial Paper and other assets and liabilities.

*All fund returns referenced in this commentary are for Class I shares. Total
 returns for periods less than one year are not annualized.


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5


VP Inflation Protection

Unfortunately, our security selection detracted from relative performance in
recent months as a Sallie Mae inflation-linked bond underperformed as a result
of credit concerns relating to the private equity buyout of the student loan
giant. The bonds fell in price over worries that additional debt involved in
the deal might lead credit rating agencies such as Standard & Poor's and
Moody's to downgrade the lender.

On a positive note, we helped performance by maintaining a yield
curve-steepening bias during the period using TIPS bonds and two- and 10-year
Treasury futures. The yield curve rose and steepened during the period, when
the yield difference between two- and 10-year Treasurys went from negative
nine basis points (the yield curve was "inverted") to positive 16 basis points
(a more normal, upward slope). This curve-steepening bias is a strategy we
expect to carry forward, given our view of the economy, rates, and shape of
the curve.

STARTING POINT FOR NEXT REPORTING PERIOD

"We continue to focus on the fund's repeatable, multi-layered approach to
investing in an effort to identify the best relative values among the U.S.
inflation-linked securities universe. We think this steady, long-term approach
to investing is the best way to generate outperformance over time," says
portfolio manager Jeremy Fletcher. "Because we think we've yet to see the full
effect of a slowdown in housing on the economy, we're working hard to position
the portfolio for an environment of slower economic growth and moderate
inflation. We should point out, however, that this scenario could be difficult
for inflation-linked securities relative to traditional bonds in the near
term. This means we're looking at trading out of some inflation-indexed
securities in favor of nominal bonds when we believe the difference in yield
between them represents attractive relative value."

Portfolio at a Glance
                                 As of       As of
                                6/30/07     12/31/06

30-Day SEC Yield
 Class I                         7.93%*     (1.47)%
 Class II                        7.67%*     (1.72)%

Weighted Average Maturity      9.3 years   6.7 years

Average Duration
(effective)                    6.4 years   4.5 years

*The above-average 30-day SEC yields as of June 30, 2007, primarily resulted
 from an unusually elevated April inflation reading. The market conditions
 fostering this occurrence may not be repeated or consistently achieved in the
 future.


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6


SHAREHOLDER FEE EXAMPLE (UNAUDITED)

Fund shareholders may incur two types of costs: (1) transaction costs,
including sales charges (loads) on purchase payments and redemption/exchange
fees; and (2) ongoing costs, including management fees; distribution and
service (12b-1) fees; and other fund expenses. This example is intended to
help you understand your ongoing costs (in dollars) of investing in your fund
and to compare these costs with the ongoing cost of investing in other mutual
funds.

The example is based on an investment of $1,000 made at the beginning of the
period and held for the entire period from January 1, 2007 to June 30, 2007.

ACTUAL EXPENSES

The table provides information about actual account values and actual expenses
for each class. You may use the information, together with the amount you
invested, to estimate the expenses that you paid over the period. First,
identify the share class you own. Then simply divide your account value by
$1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number under the heading "Expenses Paid During
Period" to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The table also provides information about hypothetical account values and
hypothetical expenses based on the actual expense ratio of each class of your
fund and an assumed rate of return of 5% per year before expenses, which is
not the actual return of a fund's share class. The hypothetical account values
and expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in your fund and other funds. To do so, compare
this 5% hypothetical example with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) or redemption/exchange fees. Therefore, the table is useful in
comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transactional
costs were included, your costs would have been higher.

                   Beginning         Ending       Expenses Paid
                 Account Value   Account Value    During Period*     Annualized
                     1/1/07         6/30/07      1/1/07 - 6/30/07  Expense Ratio*
ACTUAL
Class I              $1,000        $1,012.20          $2.49             0.50%
Class II             $1,000        $1,012.00          $3.74             0.75%

HYPOTHETICAL
Class I              $1,000        $1,022.32          $2.51             0.50%
Class II             $1,000        $1,021.08          $3.76             0.75%

*Expenses are equal to the class's annualized expense ratio listed in the
 table above, multiplied by the average account value over the period,
 multiplied by 181, the number of days in the most recent fiscal half-year,
 divided by 365, to reflect the one-half year period.


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7


SCHEDULE OF INVESTMENTS
VP Inflation Protection

JUNE 30, 2007 (UNAUDITED)

Principal Amount                                                               Value

U.S. Treasury Securities
& Equivalents -- 55.4%

     $ 1,500,000  AID (Egypt), 4.45%, 9/15/15                            $ 1,408,872
      34,743,834  U.S. Treasury Inflation Indexed Bonds, 2.375%,
                  1/15/25(1)                                              33,419,260
      34,558,212  U.S. Treasury Inflation Indexed Bonds, 2.00%,
                  1/15/26(1)                                              31,312,989
      36,265,884  U.S. Treasury Inflation Indexed Bonds, 2.375%,
                  1/15/27(1)                                              34,837,950
      17,244,090  U.S. Treasury Inflation Indexed Bonds, 3.625%,
                  4/15/28                                                 19,982,952
      10,449,627  U.S. Treasury Inflation Indexed Bonds, 3.875%,
                  4/15/29                                                 12,619,565
      15,986,579  U.S. Treasury Inflation Indexed Bonds, 3.375%,
                  4/15/32(1)                                              18,404,565
       5,243,080  U.S. Treasury Inflation Indexed Notes, 3.625%,
                  1/15/08                                                  5,247,998
       2,771,428  U.S. Treasury Inflation Indexed Notes, 3.875%,
                  1/15/09                                                  2,816,466
       6,115,191  U.S. Treasury Inflation Indexed Notes, 4.25%,
                  1/15/10                                                  6,348,816
       6,952,193  U.S. Treasury Inflation Indexed Notes, 0.875%,
                  4/15/10                                                  6,604,590
       6,172,556  U.S. Treasury Inflation Indexed Notes, 3.50%,
                  1/15/11                                                  6,352,430
       3,382,795  U.S. Treasury Inflation Indexed Notes, 2.375%,
                  4/15/11                                                  3,346,856
       5,642,975  U.S. Treasury Inflation Indexed Notes, 3.375%,
                  1/15/12                                                  5,826,377
       3,817,913  U.S. Treasury Inflation Indexed Notes, 2.00%,
                  4/15/12                                                  3,706,659
       1,149,040  U.S. Treasury Inflation Indexed Notes, 3.00%,
                  7/15/12                                                  1,171,662
       4,499,440  U.S. Treasury Inflation Indexed Notes, 1.875%,
                  7/15/13                                                  4,317,357
       7,826,770  U.S. Treasury Inflation Indexed Notes, 2.00%,
                  1/15/14                                                  7,524,101
      12,165,822  U.S. Treasury Inflation Indexed Notes, 2.00%,
                  7/15/14                                                 11,682,048
      15,688,565  U.S. Treasury Inflation Indexed Notes, 1.625%,
                  1/15/15                                                 14,587,918
      16,675,598  U.S. Treasury Inflation Indexed Notes, 1.875%,
                  7/15/15                                                 15,763,660
      11,892,397  U.S. Treasury Inflation Indexed Notes, 2.00%,
                  1/15/16                                                 11,294,994
      16,061,100  U.S. Treasury Inflation Indexed Notes, 2.50%,
                  7/15/16                                                 15,886,693
      12,908,196  U.S. Treasury Inflation Indexed Notes, 2.375%,
                  1/15/17                                                 12,606,673

Principal Amount                                                               Value

    $ 12,100,000  U.S. Treasury Notes, 4.50%, 5/15/17                   $ 11,604,662
                                                                        ------------
TOTAL U.S. TREASURY SECURITIES
& EQUIVALENTS
(Cost $306,663,751)                                                      298,676,113
                                                                        ------------

Collateralized Mortgage Obligations(2) -- 17.5%

       5,202,225  Banc of America Alternative Loan Trust, Series
                  2007-2, Class 2A4, 5.75%, 6/25/37                        5,162,397
       7,150,000  Banc of America Commercial Mortgage Inc., Series
                  2007-2, Class A4 SEQ, 5.69%, 3/10/17                     7,078,765
       1,108,854  Banc of America Large Loan, Series 2005 MIB1,
                  Class A1, VRN, 5.47%, 7/15/07, resets monthly
                  off the 1-month LIBOR plus 0.15% with no caps,
                  Final Maturity 8/15/07 (Acquired 11/18/05, Cost
                  $1,108,854)(3)                                           1,109,643
       2,850,000  Bear Stearns Commercial Mortgage Securities
                  Trust, Series 2003 T12, Class A2 SEQ, 3.88%,
                  8/1/39                                                   2,806,062
      15,000,000  Citigroup/Deutsche Bank Commercial Mortgage
                  Trust, Series 2007 CD4, Class A2B, 5.21%,
                  12/11/49                                                14,734,396
         729,678  Commercial Mortgage Pass-Through Certificates,
                  Series 2005 FL11, Class A1, VRN, 5.47%, 7/16/07,
                  resets monthly off the 1-month LIBOR plus 0.15%
                  with no caps, Final Maturity 11/15/17 (Acquired
                  11/18/05, Cost $729,678)(3)                                730,188
       6,250,000  Credit Suisse First Boston Mortgage Securities
                  Corp., Series 2002 CKN2, Class A3 SEQ, 6.13%,
                  4/15/37                                                  6,370,175
       3,000,000  Credit Suisse First Boston Mortgage Securities
                  Corp., Series 2002 CKP1, Class B, 6.57%, 12/15/35        3,115,323
       1,692,668  FHLMC, Series 2508, Class UL SEQ, 5.00%, 12/15/16        1,674,641
       3,000,000  FNMA, Series 2003-92, Class PD, 4.50%, 3/25/17           2,896,971
       1,332,047  GNMA, Series 2003-46, Class PA, 5.00%, 5/20/29           1,316,618
       2,512,743  GNMA, Series 2003-105, Class A SEQ,
                  4.50%, 11/16/27                                          2,453,819



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8


VP Inflation Protection
Principal Amount                                                               Value

        $536,806  GNMA, Series 2003-112, Class MN, 4.00%, 5/16/25           $531,861
       2,000,000  GNMA, Series 2005-24, Class UB SEQ, 5.00%,
                  1/20/31                                                  1,938,410
       6,000,000  Greenwich Capital Commercial Funding Corp.,
                  Series 2005 GG3, Class A2 SEQ, VRN, 4.31%,
                  7/1/07, Final Maturity 8/10/42                           5,848,824
       3,170,000  J.P. Morgan Chase Commercial Mortgage Securities
                  Corp., Series 2002 C1, Class A3 SEQ, 5.38%,
                  7/12/37                                                  3,136,537
       2,000,000  LB-UBS Commercial Mortgage Trust, Series 2003
                  C3, Class A3 SEQ, 3.85%, 5/11/27                         1,883,248
       1,000,000  LB-UBS Commercial Mortgage Trust, Series 2003
                  C5, Class A2 SEQ, 3.48%, 7/15/27                           980,927
       5,000,000  LB-UBS Commercial Mortgage Trust, Series 2004
                  C4, Class A2, VRN, 4.57%, 7/11/07, Final
                  Maturity 6/15/29                                         4,934,914
       3,890,386  LB-UBS Commercial Mortgage Trust, Series 2005
                  C2, Class A2 SEQ, 4.82%, 4/15/30                         3,834,050
       2,590,000  LB-UBS Commercial Mortgage Trust, Series 2005
                  C3, Class A3 SEQ, 4.65%, 7/30/30                         2,498,640
       2,000,000  Merrill Lynch Mortgage Trust STRIPS - COUPON,
                  Series 2006 C1, Class A2, VRN, 5.61%, 7/1/07,
                  Final Maturity 5/12/39                                   2,006,716
       7,580,000  Morgan Stanley Capital I STRIPS - COUPON, Series
                  2007 HQ11, Class A2, 5.36%, 2/20/44                      7,487,486
       5,000,000  Morgan Stanley Capital I, Series 2004 HQ3, Class
                  A2 SEQ, 4.05%, 1/13/41                                   4,853,675
       2,055,000  Washington Mutual Mortgage Pass-Through
                  Certificates, Series 2004 AR4, Class A6, 3.81%,
                  6/25/34                                                  1,990,393
       1,805,000  Washington Mutual Mortgage Pass-Through
                  Certificates, Series 2004 AR7, Class A6, 3.94%,
                  7/25/34                                                  1,759,332
       1,000,000  Washington Mutual Mortgage Pass-Through
                  Certificates, Series 2005 AR4, Class A3, 4.59%,
                  4/25/35                                                    980,248
                                                                        ------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $95,194,977)                                                        94,114,259
                                                                        ------------

Principal Amount                                                               Value

Corporate Bonds -- 9.9%

     $ 2,000,000  ABN AMRO Bank N.V., VRN, 4.78%, 7/27/07, resets
                  monthly off the Consumer Price Index Year over
                  Year plus 2.00% with no caps, Final Maturity
                  9/27/08                                                $ 1,965,840
       2,000,000  Barclays Bank plc, VRN, 4.32%, 7/13/07, resets
                  monthly off the Consumer Price Index Year over
                  Year plus 1.75% with no caps, Final Maturity
                  3/17/08                                                  1,972,060
       2,000,000  Barclays Bank plc, VRN, 4.61%, 7/26/07, resets
                  monthly off the Consumer Price Index Year over
                  Year plus 1.83% with no caps, Final Maturity
                  7/28/08                                                  1,953,460
         187,000  Hartford Life Insurance Co., VRN, 4.77%,
                  7/15/07, resets monthly off the Consumer Price
                  Index Year Over Year plus 2.20% with no caps,
                  Final Maturity 10/15/08                                    182,437
         706,000  HSBC Finance Corp., VRN, 3.65%, 7/10/07, resets
                  monthly off the Consumer Price Index Year over
                  Year plus 1.08% with no caps, Final Maturity
                  9/10/09                                                    664,332
       3,000,000  HSBC Finance Corp., VRN, 3.68%, 7/10/07, resets
                  monthly off the Consumer Price Index Year over
                  Year plus 1.11% with no caps, Final Maturity
                  2/10/10                                                  2,804,730
       1,067,000  HSBC Finance Corp., VRN, 3.76%, 7/10/07, resets
                  monthly off the Consumer Price Index Year over
                  Year plus 1.19% with no caps, Final Maturity
                  2/10/09                                                  1,022,218
       5,000,000  International Bank for Reconstruction &
                  Development, 7.625%, 1/19/23                             6,111,375
          40,000  John Hancock Life Insurance Co., VRN, 3.70%,
                  7/15/07, resets monthly off the Consumer Price
                  Index Year over Year plus 1.13% with no caps,
                  Final Maturity 6/15/10                                      37,071
         179,000  John Hancock Life Insurance Co., VRN, 4.19%,
                  7/15/07, resets monthly off the Consumer Price
                  Index Year over Year plus 1.62% with no caps,
                  Final Maturity 11/15/10                                    166,307


- ------
9


VP Inflation Protection

Principal Amount                                                               Value

     $ 2,139,000  Lehman Brothers Holdings Inc., VRN, 4.85%,
                  7/10/07, resets monthly off the Consumer Price
                  Index Year over Year plus 2.07% with no caps,
                  Final Maturity 11/10/15                                $ 1,899,774
       4,160,000  Lehman Brothers Holdings Inc., VRN, 4.24%,
                  7/23/07, resets monthly off the Consumer Price
                  Index Year over Year plus 1.46% with no caps,
                  Final Maturity 3/23/12                                   3,768,960
       4,560,000  Merrill Lynch & Co., Inc., VRN, 3.94%, 7/2/07,
                  resets monthly off the Consumer Price Index plus
                  1.16% with no caps, Final Maturity 3/2/09                4,373,086
       4,359,000  Morgan Stanley, VRN, 4.88%, 7/2/07, resets
                  monthly off the Consumer Price Index Year over
                  Year plus 2.10% with no caps, Final Maturity
                  12/1/17                                                  3,790,412
       2,125,000  Principal Life Income Fundings Trusts, VRN,
                  3.83%, 7/1/07, resets monthly off the Consumer
                  Price Index Year over Year plus 1.05% with no
                  caps, Final Maturity 4/1/08                              2,071,833
         303,000  Prudential Financial, Inc., VRN, 4.78%, 7/2/07,
                  resets monthly off the Consumer Price Index Year
                  over Year plus 2.00% with no caps, Final
                  Maturity 11/2/20                                           254,220
         300,000  Prudential Financial, Inc., VRN, 4.85%, 7/10/07,
                  resets monthly off the Consumer Price Index Year
                  over Year plus 1.85% with no caps, Final
                  Maturity 12/10/07                                          296,103
      10,817,900  SLM Corporation, 1.32%, 1/25/10                         10,020,404
         490,000  SLM Corporation, VRN, 4.93%, 7/2/07, resets
                  monthly off the Consumer Price Index Year over
                  Year plus 2.15% with no caps, Final Maturity
                  2/1/14                                                     401,222
       1,500,000  SLM Corporation, VRN, 4.98%, 7/15/07, resets
                  monthly off the Consumer Price Index Year over
                  Year plus 2.20% with no caps, Final Maturity
                  6/15/09                                                  1,418,430
       8,726,400  Toyota Motor Credit Corp. Inflation Indexed
                  Bonds, 1.22%, 10/1/09                                    8,385,023
                                                                        ------------
TOTAL CORPORATE BONDS
(Cost $56,594,132)                                                        53,559,297
                                                                        ------------

Principal Amount                                                               Value

U.S. Government Agency Securities -- 7.1%

      $3,750,000  FAMCA, 5.50%, 7/15/11 (Acquired 9/6/06,
                  Cost $3,804,075)(3)                                    $ 3,774,638
       1,000,000  FAMCA, 5.40%, 10/14/11                                   1,003,177
       3,974,000  FAMCA, 6.71%, 7/28/14                                    4,286,773
       5,000,000  FFCB, 5.375%, 7/18/11                                    5,026,605
       5,000,000  FFCB, 4.875%, 1/17/17                                    4,793,135
       5,000,000  FHLB, 5.00%, 3/9/12                                      4,949,700
       2,000,000  FHLB, 4.75%, 12/16/16                                    1,899,784
       2,770,000  FNMA, VRN, 3.92%, 7/17/07, resets monthly off
                  the Consumer Price Index Year over Year plus
                  1.14% with a cap of 24.00%, Final Maturity
                  2/17/09                                                  2,670,806
       1,500,000  PEFCO, 5.69%, 5/15/12                                    1,526,802
       2,845,000  PEFCO, 4.97%, 8/15/13                                    2,798,513
       4,000,000  PEFCO, 4.55%, 5/15/15                                    3,797,952
       1,750,000  TVA Inflation Indexed Notes, 4.875%, 12/15/16            1,675,177
                                                                        ------------
TOTAL U.S. GOVERNMENT
AGENCY SECURITIES
(Cost $39,063,423)                                                        38,203,062
                                                                        ------------

U.S. Government Agency Mortgage-Backed Securities(2) -- 4.1%

         766,716  FHLMC, 4.50%, 5/1/19                                       729,854
       4,293,061  FHLMC, 5.00%, 4/1/21                                     4,152,777
       5,463,866  FHLMC, 5.50%, 11/1/21                                    5,383,656
         399,919  FHLMC, 5.50%, 12/1/33                                      387,623
       6,234,283  FNMA, 6.00%, settlement date 7/12/07(4)                  6,167,071
       1,102,935  FNMA, 5.00%, 9/1/20                                      1,066,827
         134,781  GNMA, 6.00%, 6/20/17                                       134,524
         137,178  GNMA, 6.00%, 7/20/17                                       136,916
         865,996  GNMA, 6.00%, 5/15/24                                       864,637
       3,124,918  GNMA, 5.50%, 9/20/34                                     3,034,155
                                                                        ------------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED SECURITIES
(Cost $22,407,597)                                                        22,058,040
                                                                        ------------

Commercial Paper(5) -- 2.7%

       5,200,000  Govco Incorporated, 5.35%, 7/2/07
                  (Acquired 6/29/07, Cost $5,197,682)(3)                   5,200,000
       9,567,000  UBS Finance LLC, 5.23%, 9/7/07                           9,473,703
                                                                        ------------
TOTAL COMMERCIAL PAPER
(Cost $14,671,716)                                                        14,673,703
                                                                        ------------



- ------
10


VP Inflation Protection
Principal Amount                                                               Value

Zero-Coupon U.S. Treasury Securities
and Equivalents(6) -- 1.9%

         $40,000  Federal Judiciary, 5.50%, 8/15/07                         $ 39,775
          45,000  Federal Judiciary, 5.34%, 2/15/08                           43,644
         242,000  Federal Judiciary, 4.41%, 8/15/11                          197,215
          56,000  Federal Judiciary, 4.88%, 8/15/12                           43,338
       4,351,000  Federal Judiciary, 4.85%, 8/15/13                        3,193,233
          91,000  Federal Judiciary, 5.43%, 2/15/23                           38,747
         353,000  REFCORP STRIPS - COUPON, 3.61%, 10/15/08                   331,362
       2,000,000  REFCORP STRIPS - COUPON, 3.68%, 1/15/09                  1,854,530
       2,000,000  REFCORP STRIPS - COUPON, 4.83%, 4/15/09                  1,832,950
       2,000,000  REFCORP STRIPS - COUPON, 4.51%, 1/15/14                  1,438,652
         232,000  REFCORP STRIPS - COUPON, 4.84%, 4/15/16                    147,112
         142,000  REFCORP STRIPS - COUPON, 4.87%, 7/15/17                     83,749
         442,000  REFCORP STRIPS - COUPON, 4.91%, 1/15/18                    253,220
         475,000  REFCORP STRIPS - COUPON, 4.94%, 4/15/19                    253,429
         500,000  TVA STRIPS - COUPON, 5.28%, 4/15/08                        480,469
         110,000  TVA STRIPS - COUPON, 4.95%, 10/15/08                       103,063
         100,000  TVA STRIPS - COUPON, 4.77%, 4/15/12                         78,893
                                                                        ------------
TOTAL ZERO-COUPON U.S. TREASURY
SECURITIES AND EQUIVALENTS
(Cost $10,606,615)                                                        10,413,381
                                                                        ------------

Zero-Coupon U.S. Government
Agency Securities(6) -- 1.8%

          25,000  FICO STRIPS - COUPON, 4.23%, 11/30/07                       24,496
         125,000  FICO STRIPS - COUPON, 4.40%, 11/30/08                      116,254
         485,000  FICO STRIPS - COUPON, 4.58%, 11/30/10                      408,062
       3,038,000  FICO STRIPS - COUPON, 5.10%, 4/6/11                      2,520,754
       1,763,000  FICO STRIPS - COUPON, 4.83%, 3/26/12                     1,389,580

Principal Amount                                                               Value

     $ 2,000,000  FICO STRIPS - COUPON, 4.39%, 10/6/12                    $1,526,770
       2,000,000  Government Trust Certificates, 5.10%, 11/15/07           1,964,488
         900,000  Government Trust Certificates, 2.87%, 5/15/08              861,310
       1,000,000  Government Trust Certificates, 3.06%, 11/15/08             932,940
                                                                        ------------
TOTAL ZERO-COUPON U.S. GOVERNMENT
AGENCY SECURITIES
Cost $9,868,988)                                                           9,744,654
                                                                        ------------

Asset-Backed Securities(2) -- 0.3%

         204,805  Atlantic City Electric Transition Funding LLC,
                  Series 2003-1, Class A1 SEQ, 2.89%, 7/20/11                199,978
         110,576  CNH Equipment Trust, Series 2004 A, Class A3A,
                  VRN, 5.39%, 7/16/07, resets monthly off the
                  1-month LIBOR plus 0.07% with no caps, Final
                  Maturity 10/15/08                                          110,649
         300,866  Countrywide Asset-Backed Certificates, Series
                  2006-6, Class 2A1, VRN, 5.39%, 7/25/07, resets
                  monthly off the 1-month LIBOR plus 0.07% with no
                  caps, Final Maturity 9/25/36                               301,067
         567,293  Credit-Based Asset Servicing and Securitization,
                  Series 2006 CB3, Class AV1, VRN, 5.38%, 7/25/07,
                  resets monthly off the 1-month LIBOR plus 0.06%
                  with no caps, Final Maturity 3/25/36                       567,668
         488,628  IndyMac Residential Asset Backed Trust, Series
                  2006 B, Class 2A1, VRN, 5.38%, 7/25/07, resets
                  monthly off the 1-month LIBOR plus 0.06% with no
                  caps, Final Maturity 6/25/36                               488,967
                                                                        ------------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,672,173)                                                          1,668,329
                                                                        ------------
TOTAL INVESTMENT
SECURITIES -- 100.7%
(Cost $556,743,372)                                                      543,110,838
                                                                        ------------
OTHER ASSETS
AND LIABILITIES -- (0.7)%                                                (3,608,679)
                                                                        ------------
TOTAL NET ASSETS -- 100.0%                                              $539,502,159
                                                                        ============


- ------
11


SCHEDULE OF INVESTMENTS
VP Inflation Protection

Swap Agreements
                                                         Expiration     Unrealized
Notional Amount   Description of Agreement                  Date       Gain (Loss)

CREDIT DEFAULT

     $ 4,750,000  Pay quarterly a fixed rate equal to    June 2010       $ (4,995)
                  0.20% multiplied by the notional
                  amount and receive from Merrill
                  Lynch International upon each
                  default event of HSBC Finance
                  Corp., par value of the
                  proportional notional amount.


TOTAL RETURN

      20,000,000  Pay a fixed rate equal to 1.13% and   January 2012       327,425
                  receive the return of the U.S. CPI
                  Urban Consumers NSA Index upon the
                  termination date with Barclays Bank
                  plc.

      35,000,000  Pay a fixed rate equal to 1.14% and    March 2012        289,442
                  receive the return of the U.S. CPI
                  Urban Consumers NSA Index upon the
                  termination date with Barclays Bank
                  plc.

      20,000,000  Pay a fixed rate equal to 1.21% and    June 2014           5,101
                  receive the return of the U.S. CPI
                  Urban Consumers NSA Index upon the
                  termination date with Barclays Bank
                  plc.

      20,000,000  Pay a fixed rate equal to 1.31% and    April 2017        312,875
                  receive the return of the U.S. CPI
                  Urban Consumers NSA Index upon the
                  termination date with Barclays Bank
                  plc.
                                                                       -----------
                                                                          $929,848
                                                                       ===========

Notes to Schedule of Investments

AID = Agency for International Development
CPI = Consumer Price Index
Equivalent = Security whose principal payments are secured by U.S. Treasurys
FAMCA = Federal Agricultural Mortgage Corporation
FFCB = Federal Farm Credit Bank
FHLB = Federal Home Loan Bank
FHLMC = Federal Home Loan Mortgage Corporation
FICO = Financing Corporation
FNMA = Federal National Mortgage Association
GNMA = Government National Mortgage Association
LB-UBS = Lehman Brothers Inc. -- UBS AG
LIBOR = London Interbank Offered Rate
NSA = Not Seasonally Adjusted
PEFCO = Private Export Funding Corporation
REFCORP = Resolution Funding Corporation
resets = The frequency with which a security's coupon changes, based on
current market conditions or an underlying index. The more frequently a
security resets, the less risk the investor is taking that the coupon will
vary significantly from current market rates.
SEQ = Sequential Payer
STRIPS = Separate Trading of Registered Interest and Principal of Securities
TVA = Tennessee Valley Authority
VRN = Variable Rate Note. Interest reset date is indicated. Rate shown is
effective June 30, 2007.

(1)  Security, or a portion thereof, has been segregated for forward commitments
     and swap agreements.

(2)  Final maturity indicated, unless otherwise noted.

(3)  Security was purchased under Rule 144A of the Securities Act of 1933 or is
     a private placement and, unless registered under the Act or exempted from
     registration, may only be sold to qualified institutional investors. The
     aggregate value of restricted securities at June 30, 2007 was $10,814,469,
     which represented 2.0% of total net assets.

(4)  Forward commitment.

(5)  The rate indicated is the yield to maturity at purchase.

(6)  The rate indicated is the yield to maturity at purchase. These securities
     are issued at a substantial discount from their value at maturity.

See Notes to Financial Statements.


- ------
12


STATEMENT OF ASSETS AND LIABILITIES

JUNE 30, 2007 (UNAUDITED)

ASSETS

Investment securities, at value (cost of $556,743,372)          $543,110,838

Cash                                                               2,416,073

Receivable for investments sold                                    2,435,705

Unrealized appreciation on swap agreements                           934,843

Interest receivable                                                4,406,168
                                                                ------------
                                                                 553,303,627
                                                                ------------

LIABILITIES

Payable for investments purchased                                 13,485,892

Unrealized depreciation on swap agreements                             4,995

Accrued management fees                                              210,607

Distribution fees payable                                             99,974
                                                                ------------
                                                                  13,801,468
                                                                ------------

NET ASSETS                                                      $539,502,159
                                                                ============

NET ASSETS CONSIST OF:

Capital (par value and paid-in surplus)                         $560,906,974

Accumulated net realized loss on investment transactions         (8,702,420)

Net unrealized depreciation on investments                      (12,702,395)
                                                                ------------
                                                                $539,502,159
                                                                ============

CLASS I, $0.01 PAR VALUE

Net assets                                                       $44,926,452

Shares outstanding                                                 4,519,324

Net asset value per share                                              $9.94

CLASS II, $0.01 PAR VALUE

Net assets                                                      $494,575,707

Shares outstanding                                                49,772,124

Net asset value per share                                              $9.94

See Notes to Financial Statements.


- ------
13


STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2007 (UNAUDITED)

INVESTMENT INCOME (LOSS)

INCOME:

Interest                                                               $15,658,140
                                                                       -----------

EXPENSES:

Management fees                                                          1,265,711

Distribution fees -- Class II                                              602,316

Directors' fees and expenses                                                37,638

Other expenses                                                                 669
                                                                       -----------
                                                                         1,906,334
                                                                       -----------

NET INVESTMENT INCOME (LOSS)                                            13,751,806
                                                                       -----------

REALIZED AND UNREALIZED GAIN (LOSS)

NET REALIZED GAIN (LOSS) ON:

Investment transactions                                                (3,782,786)

Swaps transactions                                                         (2,058)
                                                                       -----------
                                                                       (3,784,844)

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:

Investments                                                            (4,924,082)

Swaps                                                                      929,848
                                                                       -----------
                                                                       (3,994,234)
                                                                       -----------

NET REALIZED AND UNREALIZED GAIN (LOSS)                                (7,779,078)
                                                                       -----------

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS        $ 5,972,728
                                                                       ===========

See Notes to Financial Statements.


- ------
14


STATEMENT OF CHANGES IN NET ASSETS

SIX MONTHS ENDED JUNE 30, 2007 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 2006

Increase (Decrease) in Net Assets                              2007           2006

OPERATIONS

Net investment income (loss)                           $ 13,751,806   $ 15,803,250

Net realized gain (loss)                                (3,784,844)    (3,685,042)

Change in net unrealized appreciation (depreciation)    (3,994,234)    (3,464,415)
                                                       ------------   ------------
Net increase (decrease) in net assets resulting
from operations                                           5,972,728      8,653,793
                                                       ------------   ------------
DISTRIBUTIONS TO SHAREHOLDERS

From net investment income:

  Class I                                               (1,122,111)    (1,216,198)

  Class II                                             (12,639,951)   (15,885,793)
                                                       ------------   ------------
Decrease in net assets from distributions              (13,762,062)   (17,101,991)
                                                       ------------   ------------

CAPITAL SHARE TRANSACTIONS

Net increase (decrease) in net assets from capital
share transactions                                       24,503,016     83,772,753
                                                       ------------   ------------

NET INCREASE (DECREASE) IN NET ASSETS                    16,713,682     75,324,555

NET ASSETS

Beginning of period                                     522,788,477    447,463,922
                                                       ------------   ------------
End of period                                          $539,502,159   $522,788,477
                                                       ============   ============

See Notes to Financial Statements.


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15


NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2007 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION -- American Century Variable Portfolios II, Inc. (the
corporation) is registered under the Investment Company Act of 1940 (the 1940
Act) as an open-end management investment company. VP Inflation Protection
Fund (the fund) is one fund in a series issued by the corporation. The fund is
diversified under the 1940 Act. The fund's investment objective is to pursue
long-term total return using a strategy that seeks to protect against U.S.
inflation. The fund pursues its investment objective by investing
substantially all of its assets in investment-grade debt securities, primarily
inflation-adjusted debt securities that are designed to protect the future
purchasing power of the money invested in them. The following is a summary of
the fund's significant accounting policies.

MULTIPLE CLASS -- The fund is authorized to issue Class I and Class II. The
share classes differ principally in their respective distribution expenses and
arrangements. All shares of the fund represent an equal pro rata interest in
the assets of the class to which such shares belong, and have identical
voting, dividend, liquidation and other rights and the same terms and
conditions, except for class specific expenses and exclusive rights to vote on
matters affecting only individual classes. Income, non-class specific
expenses, and realized and unrealized capital gains and losses of the fund are
allocated to each class of shares based on their relative net assets.

SECURITY VALUATIONS -- Debt securities maturing in greater than 60 days are
valued at current market value as provided by a commercial pricing service or
at the mean of the most recent bid and asked prices. Debt securities maturing
within 60 days may be valued at cost, plus or minus any amortized discount or
premium. If an event occurs 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, that security would be valued as
determined in accordance with procedures adopted by the Board of Directors. If
the fund determines that the market price of a portfolio security is not
readily available, or that the valuation methods mentioned above do not
reflect the security's fair value, such security is valued as determined by,
or in accordance with procedures adopted by, the Board of Directors or its
designee if such determination would materially impact a fund's net asset
value. Certain other circumstances may cause the fund to use alternative
procedures to value a security such as: a security has been declared in
default; trading in a security has been halted during the trading day; or
there is a foreign market holiday and no trading will commence.

SECURITY TRANSACTIONS -- Security transactions are accounted for as of the
trade date. Net realized gains and losses are determined on the identified
cost basis, which is also used for federal income tax purposes.

INVESTMENT INCOME -- Interest income is recorded on the accrual basis and
includes paydown gain (loss) and accretion of discounts and amortization of
premiums. Inflation adjustments related to inflation-linked debt securities
are reflected as interest income.

WHEN-ISSUED AND FORWARD COMMITMENTS -- The fund may engage in securities
transactions on a when-issued or forward commitment basis. In these
transactions, the securities' prices and yields are fixed on the date of the
commitment. In a when-issued transaction, the payment and delivery are
scheduled for a future date and during this period, securities are subject to
market fluctuations. In a forward commitment transaction, the fund may sell a
security and at the same time make a commitment to purchase the same security
at a future date at a specified price. Conversely, the fund may purchase a
security and at the same time make a commitment to sell the same security at a
future date at a specified price. These types of transactions are executed
simultaneously in what are known as "roll" transactions. The fund will
segregate cash, cash equivalents or other appropriate liquid securities on its
records in amounts sufficient to meet the purchase price. The fund accounts
for "roll" transactions as purchases and sales; as such these transactions may
increase portfolio turnover.

REPURCHASE AGREEMENTS -- The fund may enter into repurchase agreements with
institutions that American Century Investment Management, Inc. (ACIM) (the
investment advisor) has determined are creditworthy pursuant to criteria
adopted by the Board of Directors. Each repurchase agreement is recorded at
cost. The fund requires that the collateral, represented by securities,
received in a repurchase transaction be transferred to the custodian in a
manner sufficient to enable the fund to obtain those securities in the event
of a default under the repurchase agreement. ACIM monitors, on a daily


- ------
16


basis, the securities transferred to ensure the value, including accrued
interest, of the securities under each repurchase agreement is equal to or
greater than amounts owed to the fund under each repurchase agreement.

JOINT TRADING ACCOUNT -- Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other registered
investment companies having management agreements with ACIM or American
Century Global Investment Management, Inc. (ACGIM), may transfer uninvested
cash balances into a joint trading account. These balances are invested in one
or more repurchase agreements that are collateralized by U.S. Treasury or
Agency obligations.

SWAP AGREEMENTS -- The fund may enter into swap agreements in order to attempt
to obtain or preserve a particular return or spread at a lower cost than
obtaining a return or spread through purchases and/or sales of instruments in
other markets; protect against currency fluctuations; attempt to manage
duration to protect against any increase in the price of securities the fund
anticipates purchasing at a later date; or gain exposure to certain markets in
the most economical way possible. A basic swap agreement is a contract in
which two parties agree to exchange the returns earned or realized on
predetermined investments or instruments. Credit default swaps enable an
investor to buy/sell protection against a credit event of a specific issuer.
The seller of credit protection against a security or basket of securities
receives an up-front or periodic payment to compensate against potential
default events. The fund may enhance returns by selling protection or attempt
to mitigate credit risk by buying protection. The fund will segregate cash,
cash equivalents or other appropriate liquid securities on its records in
amounts sufficient to meet requirements. Unrealized gains are reported as an
asset and unrealized losses are reported as a liability on the Statement of
Assets and Liabilities. Swap agreements are valued daily and changes in value,
including the periodic amounts of interest to be paid or received on swaps,
are recorded as unrealized appreciation (depreciation) on swaps. Realized gain
or loss is recorded upon receipt or payment of a periodic settlement or
termination of swap agreements. The risks of entering into swap agreements
include the possible lack of liquidity, failure of the counterparty to meet
its obligations, and that there may be unfavorable changes in the underlying
investments and instruments.

INCOME TAX STATUS -- It is the fund's policy to distribute substantially all
net investment income and net realized gains to shareholders and to otherwise
qualify as a regulated investment company under provisions of the Internal
Revenue Code. Accordingly, no provision has been made for federal or state
income taxes.

DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders are recorded on
the ex-dividend date. Distributions from net investment income are declared
daily and paid monthly. Distributions from net realized gains, if any, are
generally declared and paid annually.

The book-basis character of distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. These differences reflect
the differing character of paydown losses, interest on swap agreements,
certain income items and net realized gains and losses for financial statement
and tax purposes, and may result in reclassification among certain capital
accounts on the financial statements.

As of December 31, 2006, the fund had accumulated net realized capital loss
carryovers for federal income tax purposes of $(4,120,184), which may be used
to offset future taxable gains. Capital loss carryovers of $(721,603) and
$(3,398,581) expire in 2013 and 2014, respectively.

The fund has elected to treat $(131,153) of net capital losses incurred in the
two-month period ended December 31, 2006, as having been incurred in the
following fiscal year for federal income tax purposes.

INDEMNIFICATIONS -- Under the corporation's organizational documents, its
officers and directors are indemnified against certain liabilities arising out
of the performance of their duties to the fund. In addition, in the normal
course of business, the fund enters into contracts that provide general
indemnifications. The fund's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the fund.
The risk of material loss from such claims is considered by management to be
remote.

USE OF ESTIMATES -- The financial statements are prepared in conformity with
accounting principles generally accepted in the United States of America,
which may require management to make certain estimates and assumptions at the
date of the financial statements. Actual results could differ from these
estimates.


- ------
17


2. FEES AND TRANSACTIONS WITH RELATED PARTIES

MANAGEMENT FEES -- The corporation has entered into a Management Agreement
with ACIM, under which ACIM provides the fund with investment advisory and
management services in exchange for a single, unified management fee (the fee)
per class. The Agreement provides that all expenses of the fund, except
brokerage commissions, taxes, interest, fees and expenses of those directors
who are not considered "interested persons" as defined in the 1940 Act
(including counsel fees) and extraordinary expenses, will be paid by ACIM. The
fee is computed and accrued daily based on the daily net assets of the
specific class of shares of the fund and paid monthly in arrears. The fee
consists of (1) an Investment Category Fee based on the daily net assets of
the funds and certain other accounts managed by the investment advisor that
are in the same broad investment category as the fund and (2) a Complex Fee
based on the assets of all the funds in the American Century family of funds.
The rates for the Investment Category Fee range from 0.1625% to 0.2800%. The
rates for the Complex Fee range from 0.2500% to 0.3100%. The effective annual
management fee for each class of the fund for the six months ended June 30,
2007 was 0.49% for Class I and Class II.

DISTRIBUTION FEES -- The Board of Directors has adopted the Master
Distribution Plan (the plan) for Class II, pursuant to Rule 12b-1 of the 1940
Act. The plan provides that Class II will pay American Century Investment
Services, Inc. (ACIS) an annual distribution fee equal to 0.25%. The fee is
computed and accrued daily based on the Class II daily net assets and paid
monthly in arrears. The distribution fee provides compensation for expenses
incurred in connection with distributing shares of Class II including, but not
limited to, payments to brokers, dealers, and financial institutions that have
entered into sales agreements with respect to shares of the fund. Fees
incurred under the plan during the six months ended June 30, 2007, are
detailed in the Statement of Operations.

RELATED PARTIES -- Certain officers and directors of the corporation are also
officers and/or directors, and, as a group, controlling stockholders of
American Century Companies, Inc. (ACC), the parent of the corporation's
investment advisor, ACIM, the distributor of the corporation, ACIS, and the
corporation's transfer agent, American Century Services, LLC.

The fund has a bank line of credit agreement with JPMorgan Chase Bank (JPMCB).
JPMCB is a custodian of the fund and a wholly owned subsidiary of JPMorgan
Chase & Co. (JPM). JPM is an equity investor in ACC.

3. INVESTMENT TRANSACTIONS

Purchases of investment securities, excluding short-term investments, for the
six months ended June 30, 2007, totaled $358,368,337, of which $302,897,843
represented U.S. Treasury and Agency obligations.

Sales of investment securities, excluding short-term investments, for the six
months ended June 30, 2007, totaled $332,450,628, of which $331,546,104
represented U.S. Treasury and Agency obligations.

As of June 30, 2007, the composition of unrealized appreciation and
depreciation of investment securities based on the aggregate cost of
investments for federal income tax purposes was as follows:

Federal tax cost of investments                             $557,667,650
                                                          ==============
Gross tax appreciation of investments                                 --
Gross tax depreciation of investments                      $(14,556,812)
                                                          --------------
Net tax appreciation (depreciation) of investments         $(14,556,812)
                                                          ==============


The difference between book-basis and tax-basis cost and unrealized
appreciation (depreciation) is attributable primarily to the tax deferral of
losses on wash sales.


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18


4. CAPITAL SHARE TRANSACTIONS

Transactions in shares of the fund were as follows:

                                  Six months                   Year ended
                              ended June 30, 2007           December 31, 2006

                                Shares         Amount        Shares         Amount

CLASS I/SHARES
AUTHORIZED                 250,000,000                  250,000,000
                           ===========                  ===========

Sold                           873,052    $ 8,797,755     1,264,516    $12,833,670

Issued in reinvestment
of distributions               111,957      1,122,111       120,190      1,216,198

Redeemed                     (341,478)    (3,467,915)     (338,808)    (3,426,598)
                           -----------   ------------   -----------   ------------
                               643,531      6,451,951     1,045,898     10,623,270
                           -----------   ------------   -----------   ------------

CLASS II/SHARES
AUTHORIZED                 250,000,000                  250,000,000
                           ===========                  ===========

Sold                         4,268,564     43,104,290    13,857,984    140,732,274

Issued in reinvestment
of distributions             1,262,883     12,639,951     1,571,323     15,885,793

Redeemed                   (3,729,504)   (37,693,176)   (8,234,158)   (83,468,584)
                           -----------   ------------   -----------   ------------
                             1,801,943     18,051,065     7,195,149     73,149,483
                           -----------   ------------   -----------   ------------
Net increase (decrease)      2,445,474    $24,503,016     8,241,047    $83,772,753
                           ===========   ============   ===========   ============

5. BANK LINE OF CREDIT

The fund, along with certain other funds managed by ACIM or ACGIM, has a
$500,000,000 unsecured bank line of credit agreement with JPMCB. The fund may
borrow money for temporary or emergency purposes to fund shareholder
redemptions. Borrowings under the agreement bear interest at the Federal Funds
rate plus 0.40%. The fund did not borrow from the line during the six months
ended June 30, 2007.

6. RECENTLY ISSUED ACCOUNTING STANDARDS

In June 2006, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an
Interpretation of FASB Statement No. 109" (FIN 48). FIN 48 establishes a
minimum threshold for financial statement recognition of the benefit of
positions taken in filing tax returns (including whether an entity is taxable
in a particular jurisdiction), and requires certain expanded tax disclosures.
FIN 48 is effective for fiscal years beginning after December 15, 2006, and is
to be applied to all open tax years as of the date of effectiveness.
Management has concluded that the adoption of FIN 48 will not materially
impact the financial statements.

The FASB issued Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" (FAS 157), in September 2006, which is effective for
fiscal years beginning after November 15, 2007. FAS 157 defines fair value,
establishes a framework for measuring fair value and expands the required
financial statement disclosures about fair value measurements. Management is
currently evaluating the impact that adopting FAS 157 will have on the
financial statement disclosures.


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19


FINANCIAL HIGHLIGHTS
VP Inflation Protection

Class I
For a Share Outstanding Throughout the Years Ended December 31 (except as noted)
                                             2007(1)     2006      2005    2004(2)
PER-SHARE DATA

Net Asset Value, Beginning of Period          $10.09   $10.26    $10.55     $10.07
                                            --------  -------   -------   --------
Income From Investment Operations

 Net Investment Income (Loss)                   0.28  0.34(3)      0.47       0.24

 Net Realized and Unrealized
 Gain (Loss)                                  (0.15)   (0.15)    (0.28)       0.48
                                            --------  -------   -------   --------
 Total From Investment Operations               0.13     0.19      0.19       0.72
                                            --------  -------   -------   --------
Distributions

 From Net Investment Income                   (0.28)   (0.36)    (0.47)     (0.24)

 From Net Realized Gains                          --       --    (0.01)         --
                                            --------  -------   -------   --------
 Total Distributions                          (0.28)   (0.36)    (0.48)     (0.24)
                                            --------  -------   -------   --------
Net Asset Value, End of Period                 $9.94   $10.09    $10.26     $10.55
                                            ========  =======   =======   ========

 TOTAL RETURN(4)                               1.22%    1.90%     1.81%      7.37%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average
Net Assets                                  0.50%(5)    0.50%     0.50%   0.49%(5)

Ratio of Net Investment Income (Loss) to
Average Net Assets                          5.50%(5)    3.37%     4.85%   3.52%(5)

Portfolio Turnover Rate                          71%      96%       82%    108%(6)

Net Assets, End of Period (in thousands)     $44,926  $39,096   $29,040    $11,319

(1)  Six months ended June 30, 2007 (unaudited).

(2)  May 7, 2004 (commencement of sale) through December 31, 2004.

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

(4)  Total return assumes reinvestment of net investment income and capital
     gains distributions, if any. Total returns for periods less than one year
     are not annualized. The total return of the classes may not precisely
     reflect the class expense differences because of the impact of calculating
     the net asset values to two decimal places. If net asset values were
     calculated to three decimal places, the total return differences would more
     closely reflect the class expense differences. The calculation of net asset
     values to two decimal places is made in accordance with SEC guidelines and
     does not result in any gain or loss of value between one class and another.

(5)  Annualized.

(6)  Portfolio turnover is calculated at the fund level. Percentage indicated
     was calculated for the year ended December 31, 2004.

See Notes to Financial Statements.


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20


VP Inflation Protection

Class II
For a Share Outstanding Throughout the Years Ended December 31 (except as noted)

                           2007(1)       2006      2005       2004       2003       2002(2)

PER-SHARE DATA

Net Asset Value,
Beginning of Period         $10.08     $10.26    $10.55     $10.31     $10.00        $10.00
                          --------   --------  --------   --------   --------     ---------

Income From
Investment Operations

 Net
 Investment
 Income
 (Loss)                       0.26    0.32(3)      0.45       0.35       0.24         --(4)

 Net
 Realized
 and
 Unrealized
 Gain (Loss)                (0.14)     (0.16)    (0.28)       0.25       0.31         --(4)
                          --------   --------  --------   --------   --------     ---------

 Total From
 Investment
 Operations                   0.12       0.16      0.17       0.60       0.55         --(4)
                          --------   --------  --------   --------   --------     ---------
Distributions

 From Net
 Investment Income          (0.26)     (0.34)    (0.45)     (0.35)     (0.24)         --(4)

 From Net
 Realized Gains                 --         --    (0.01)     (0.01)      --(4)            --
                          --------   --------  --------   --------   --------     ---------

 Total
 Distributions              (0.26)     (0.34)    (0.46)     (0.36)     (0.24)         --(4)
                          --------   --------  --------   --------   --------     ---------

Net Asset Value,
End of Period                $9.94     $10.08    $10.26     $10.55     $10.31        $10.00
                          ========   ========  ========   ========   ========     =========

 TOTAL RETURN(5)             1.20%      1.59%     1.56%      5.81%      5.61%         0.00%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses
to Average Net Assets     0.75%(6)      0.75%     0.75%      0.74%   0.74%(7)   0.50%(6)(7)

Ratio of Net Investment
Income (Loss) to
Average Net Assets        5.25%(6)      3.12%     4.60%      3.40%   2.00%(7)   0.25%(6)(7)

Portfolio Turnover
Rate                           71%        96%       82%       108%       198%            0%

Net Assets, End of
Period
(in thousands)            $494,576   $483,692  $418,424   $199,885    $33,829        $3,000


(1)  Six months ended June 30, 2007 (unaudited).

(2)  For the one day ended December 31, 2002 (fund inception).

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

(4)  Per-share amount was less than $0.005.

(5)  Total return assumes reinvestment of net investment income and capital
     gains distributions, if any. Total returns for periods less than one year
     are not annualized. The total return of the classes may not precisely
     reflect the class expense differences because of the impact of calculating
     the net asset values to two decimal places. If net asset values were
     calculated to three decimal places, the total return differences would more
     closely reflect the class expense differences. The calculation of net asset
     values to two decimal places is made in accordance with SEC guidelines and
     does not result in any gain or loss of value between one class and another.

(6)  Annualized.

(7)  ACIM waived the distribution fee from December 31, 2002 through March 31,
     2003. Had fees not been waived, the annualized ratios of operating expenses
     to average net assets and annualized ratios of net investment income (loss)
     to average net assets would have been 0.75% and 1.99% for the year ended
     December 31, 2003 and 0.75% and 0.00% for the period ended December 31,
     2002, respectively.

See Notes to Financial Statements.


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21


APPROVAL OF MANAGEMENT AGREEMENT
VP Inflation Protection

Under Section 15(c) of the Investment Company Act, contracts for investment
advisory services are required to be reviewed, evaluated and approved by a
majority of a fund's independent directors or trustees (the "Directors") each
year. At American Century, this process is referred to as the "15(c) Process."
As a part of this process, the board reviews fund performance, shareholder
services, audit and compliance information, and a variety of other reports
from the advisor concerning fund operations. In addition to this annual
review, the board of directors oversees and evaluates on a continuous basis at
its quarterly meetings the nature and quality of significant services
performed by the advisor, fund performance, audit and compliance information,
and a variety of other reports relating to fund operations. The board, or
committees of the board, also holds special meetings as needed.

Under a Securities and Exchange Commission rule, each fund is required to
disclose in its annual or semiannual report, as appropriate, the material
factors and conclusions that formed the basis for the board's approval or
renewal of any advisory agreements within the fund's most recently completed
fiscal half-year period.

ANNUAL CONTRACT REVIEW PROCESS

As part of the annual 15(c) Process undertaken during the most recent fiscal
half-year period, the Directors reviewed extensive data and information
compiled by the advisor and certain independent providers of evaluative data
(the "15(c) Providers") concerning VP Inflation Protection (the "fund") and
the services provided to the fund under the management agreement. The
information considered and the discussions held at the meetings included, but
were not limited to:

* the nature, extent and quality of investment management, shareholder
  services and other services provided to the fund under the management
  agreement;

* reports on the advisor's activities relating to the wide range of programs
  and services the advisor provides to the fund and its shareholders on a
  routine and non-routine basis;

* data comparing the cost of owning the fund to the cost of owning a similar
  fund;

* data comparing the fund's performance to appropriate benchmarks and/or a
  peer group of other mutual funds with similar investment objectives and
  strategies;

* financial data showing the profitability of the fund to the advisor and the
  overall profitability of the advisor; and

* data comparing services provided and charges to other investment management
  clients of the advisor.

In keeping with its practice, the fund's board of directors held two regularly
scheduled meetings to review and discuss the information provided by the
advisor and to complete its negotiations with the advisor regarding the
renewal of the management agreement, including the setting of the applicable
advisory fee. The board also had the benefit of the advice of its independent
counsel throughout the period.


- ------
22


FACTORS CONSIDERED

The Directors considered all of the information provided by the advisor, the
15(c) Providers, and the board's independent counsel, and evaluated such
information for each fund for which the board has responsibility. The
Directors did not identify any single factor as being all-important or
controlling, and each Director may have attributed different levels of
importance to different factors. In deciding to renew the agreement under the
terms ultimately determined by the board to be appropriate, the Directors'
decision was based on the following factors.

NATURE, EXTENT AND QUALITY OF SERVICES - GENERALLY. Under the management
agreement, the advisor is responsible for providing or arranging for all
services necessary for the operation of the fund. The board noted that under
the management agreement, the advisor provides or arranges at its own expense
a wide variety of services including:

* fund construction and design

* portfolio security selection

* initial capitalization/funding

* securities trading

* custody of fund assets

* daily valuation of the fund's portfolio

* shareholder servicing and transfer agency, including shareholder
  confirmations, recordkeeping and communications

* legal services

* regulatory and portfolio compliance

* financial reporting

* marketing and distribution

The Directors noted that many of these services have expanded over time both
in terms of quantity and complexity in response to shareholder demands,
competition in the industry and the changing regulatory environment. In
performing their evaluation, the Directors considered information received in
connection with the annual review, as well as information provided on an
ongoing basis at their regularly scheduled board and committee meetings.

INVESTMENT MANAGEMENT SERVICES. The nature of the investment management
services provided is quite complex and allows fund shareholders access to
professional money management, instant diversification of their investments
within an asset class, the opportunity to easily diversify among asset
classes, and liquidity. In evaluating investment performance, the board
expects the advisor to manage the fund in accordance with its investment
objectives and approved strategies. In providing these services, the advisor
utilizes teams of investment professionals (portfolio managers, analysts,
research assistants, and securities traders) who require extensive information
technology, research, training, compliance and other systems to conduct their
business.


- ------
23


At each quarterly meeting the Directors review investment performance
information for the fund, together with comparative information for
appropriate benchmarks and peer groups of funds managed similarly to the fund.
The Directors also review detailed performance information during the 15(c)
Process. If performance concerns are identified, the Directors discuss with
the advisor the reasons for such results (e.g., market conditions, security
selection) and any efforts being undertaken to improve performance.
Performance information presented to the Directors showed that the fund's
performance was above its benchmark for both the one- and three-year periods.

SHAREHOLDER AND OTHER SERVICES. The advisor provides the fund with a
comprehensive package of transfer agency, shareholder, and other services. The
Directors review reports and evaluations of such services at their regular
quarterly meetings, including the annual meeting concerning contract review,
and reports to the board. These reports include, but are not limited to,
information regarding the operational efficiency and accuracy of the
shareholder and transfer agency services provided, staffing levels,
shareholder satisfaction (as measured by external as well as internal
sources), technology support, new products and services offered to fund
shareholders, securities trading activities, portfolio valuation services,
auditing services, and legal and operational compliance activities. Certain
aspects of shareholder and transfer agency service level efficiency and the
quality of securities trading activities are measured by independent third
party providers and are presented in comparison to other fund groups not
managed by the advisor.

COSTS OF SERVICES PROVIDED AND PROFITABILITY TO THE ADVISOR. The advisor
provides detailed information concerning its cost of providing various
services to the fund, its profitability in managing the fund, its overall
profitability, and its financial condition. The Directors have reviewed with
the advisor the methodology used to prepare this financial information. This
financial information regarding the advisor is considered in order to evaluate
the advisor's financial condition, its ability to continue to provide services
under the management agreement, and the reasonableness of the current
management fee.

ETHICS OF THE ADVISOR. The Directors generally consider the advisor's
commitment to providing quality services to shareholders and to conducting its
business ethically. They noted that the advisor's practices generally meet or
exceed industry best practices.

ECONOMIES OF SCALE. The Directors review reports provided by the advisor on
economies of scale for the complex as a whole and the year-over-year changes
in revenue, costs, and profitability. The Directors concluded that economies
of scale are difficult to measure and predict with precision, especially on a
fund-by-fund basis. This analysis is also complicated by the additional
services and content provided by the advisor and its reinvestment in its
ability to provide and expand those services. Accordingly, the Directors also
seek to evaluate economies of scale by reviewing other information, such as
year-over-year profitability of the advisor generally, the profitability of
its management of the fund specifically, the expenses incurred by the advisor
in providing various functions to the fund, and the breakpoint fees of
competitive funds not managed by the advisor. The Directors believe the
advisor is appropriately sharing economies of scale through its competitive
fee structure, fee breakpoints as the fund complex and the fund increases in
size, and through reinvestment in its business to provide shareholders
additional content and services. In particular, separate breakpoint schedules
based on the size of the entire fund complex and on the size of the fund
reflect the complexity of assessing economies of scale.


- ------
24


COMPARISON TO OTHER FUNDS' FEES. The fund pays the advisor a single,
all-inclusive (or unified) management fee for providing all services necessary
for the management and operation of the fund, other than brokerage expenses,
taxes, interest, extraordinary expenses, and the fees and expenses of the
fund's independent directors (including their independent legal counsel).
Under the unified fee structure, the advisor is responsible for providing all
investment advisory, custody, audit, administrative, compliance,
recordkeeping, marketing and shareholder services, or arranging and
supervising third parties to provide such services. By contrast, most other
funds are charged a variety of fees, including an investment advisory fee, a
transfer agency fee, an administrative fee, distribution charges and other
expenses. Other than their investment advisory fees and Rule 12b-1
distribution fees, all other components of the total fees charged by these
other funds may be increased without shareholder approval. The board believes
the unified fee structure is a benefit to fund shareholders because it clearly
discloses to shareholders the cost of owning fund shares, and, since the
unified fee cannot be increased without a vote of fund shareholders, it shifts
to the advisor the risk of increased costs of operating the fund and provides
a direct incentive to minimize administrative inefficiencies. Part of the
Directors' analysis of fee levels involves reviewing certain evaluative data
compiled by an independent provider and comparing the fund's unified fee to
the total expense ratio of other funds in the fund's peer group. The unified
fee charged to shareholders of the fund was in the lowest quartile of the
total expense ratios of its peer group.

COMPARISON TO FEES AND SERVICES PROVIDED TO OTHER CLIENTS OF THE ADVISOR. The
Directors also requested and received information from the advisor concerning
the nature of the services, fees, and profitability of its advisory services
to advisory clients other than the fund. They observed that these varying
types of client accounts require different services and involve different
regulatory and entrepreneurial risks than the management of the fund. The
Directors analyzed this information and concluded that the fees charged and
services provided to the fund were reasonable by comparison.

COLLATERAL BENEFITS DERIVED BY THE ADVISOR. The Directors reviewed information
from the advisor concerning collateral benefits it receives as a result of its
relationship with the fund. They concluded that the advisor's primary business
is managing mutual funds and it generally does not use fund or shareholder
information to generate profits in other lines of business, and therefore does
not derive any significant collateral benefits from them. The Directors noted
that the advisor receives proprietary research from broker-dealers that
execute fund portfolio transactions and concluded that this research is likely
to benefit fund shareholders. The Directors also determined that the advisor
is able to provide investment management services to certain clients other
than the fund, at least in part, due to its existing infrastructure built to
serve the fund complex. The Directors concluded, however, that the assets of
those other clients are not material to the analysis and, in any event, are
included with the assets of the fund to determine breakpoints in the fund's
fee schedule, provided they are managed using the same investment team and
strategy.

CONCLUSIONS OF THE DIRECTORS

As a result of this process, the Directors, in the absence of particular
circumstances and assisted by the advice of legal counsel that is independent
of the advisor, taking into account all of the factors discussed above and the
information provided by the advisor concluded that the investment management
agreement between the fund and the advisor is fair and reasonable in light of
the services provided and should be renewed.


- ------
25


SHARE CLASS INFORMATION

Two classes of shares are authorized for sale by the fund: Class I and Class
II.

CLASS I shares are sold through insurance company separate accounts. Class I
shareholders do not pay any commissions or other fees to American Century for
the purchase of portfolio shares.

CLASS II shares are sold through insurance company separate accounts. Class II
shares are subject to a 0.25% Rule 12b-1 distribution fee, which is available
to pay for distribution services provided by the financial intermediary
through which the Class II shares are purchased. The total expense ratio of
Class II shares is higher than the total expense ratio of Class I shares.

All classes of shares represent a pro rata interest in the fund and generally
have the same rights and preferences. Because all shares of the fund are sold
through insurance company separate accounts, additional fees may apply.


- ------
26


ADDITIONAL INFORMATION

PROXY VOTING GUIDELINES

American Century Investment Management, Inc., the fund's investment advisor,
is responsible for exercising the voting rights associated with the securities
purchased and/or held by the fund. A description of the policies and
procedures the advisor uses in fulfilling this responsibility is available
without charge, upon request, by calling 1-800-378-9878. It is also available
on American Century's website at americancentury.com and on the Securities and
Exchange Commission's website at sec.gov. Information regarding how the
investment advisor voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is available on the "About Us" page
at americancentury.com. It is also available at sec.gov.

QUARTERLY PORTFOLIO DISCLOSURE

The fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission (SEC) for the first and third quarters of each fiscal
year on Form N-Q. The fund's Form N-Q is available on the SEC's website at
sec.gov, and may be reviewed and copied at the SEC's Public Reference Room in
Washington, DC. Information on the operation of the Public Reference Room may
be obtained by calling 1-800-SEC-0330. The fund also makes its complete
schedule of portfolio holdings for the most recent quarter of its fiscal year
available on its website at ipro.americancentury.com (for Investment
Professionals) and, upon request, by calling 1-800-378-9878.


- ------
27


INDEX DEFINITIONS

The following indices are used to illustrate investment market, sector, or
style performance or to serve as fund performance comparisons. They are not
investment products available for purchase.

The BLENDED INDEX was the benchmark for VP Inflation Protection prior to June
2007. It consists of a mix of three Citigroup (formerly Salomon Smith Barney)
indices in the following proportions: 55% Citigroup US Inflation-Linked
Securities Index, 25% Citigroup Government-Sponsored 1- to 3-Year Index, and
20% Citigroup 15-Year Mortgage Index.

The CITIGROUP 15-YEAR MORTGAGE INDEX measures the performance of the 15-year
maturity sector of the mortgage component of the USBIG (US Broad
Investment-Grade) Index, comprising 15-year Government National Mortgage
Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae),
and Federal Home Loan Mortgage Corporation (Freddie Mac) pass-throughs and
Fannie Mae and Freddie Mac balloon mortgages.

The CITIGROUP GOVERNMENT-SPONSORED 1- TO 3-YEAR INDEX includes bonds with
remaining maturities of one to three years that are issued by U.S. or
supranational agencies. Supranational agencies are supported by the capital of
more than one sovereign state, such as the World Bank.

The CITIGROUP US BROAD INVESTMENT-GRADE (BIG) BOND INDEX is a market-
capitalization-weighted index that includes fixed-rate Treasury,
government-sponsored, mortgage, asset-backed, and investment-grade issues with
a maturity of one year or longer.

The CITIGROUP US INFLATION-LINKED SECURITIES INDEX (ILSI)(SM) measures the
return of bonds with fixed-rate coupon payments that adjust for inflation as
measured by the Consumer Price Index (CPI).


- ------
28


[blank page]



CONTACT US

AMERICANCENTURY.COM

AUTOMATED INFORMATION LINE:
1-800-345-8765

INVESTMENT PROFESSIONAL SERVICE REPRESENTATIVES:
1-800-345-6488

TELECOMMUNICATIONS DEVICE FOR THE DEAF:
1-800-634-4113

AMERICAN CENTURY VARIABLE PORTFOLIOS II, INC.

INVESTMENT ADVISOR:
American Century Investment Management, Inc.
Kansas City, Missouri

THIS REPORT AND THE STATEMENTS IT CONTAINS ARE SUBMITTED FOR THE GENERAL
INFORMATION OF OUR SHAREHOLDERS. THE REPORT IS NOT AUTHORIZED FOR DISTRIBUTION
TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE
PROSPECTUS.

American Century Investment Services, Inc., Distributor

©2007 American Century Proprietary Holdings, Inc. All rights reserved.

The American Century Investments logo, American Century and American Century
Investments are service marks of American Century Proprietary Holdings, Inc.

0708
SH-SAN-55638



ITEM 2.  CODE OF ETHICS.

Not applicable for semiannual report filings.


ITEM 3.  AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable for semiannual report filings.


ITEM 4.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable for semiannual report filings.


ITEM 5.  AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.


ITEM 6.  SCHEDULE OF INVESTMENTS.

The schedule of investments is included as part of the report to stockholders
filed under Item 1 of this Form.


ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

Not applicable.


ITEM 8.  PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.


ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

Not applicable.


ITEM 10.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

During the reporting period, there were no material changes to the procedures by
which shareholders may recommend nominees to the registrant's board.


ITEM 11.  CONTROLS AND PROCEDURES.

(a)  The registrant's principal executive officer and principal financial
     officer have concluded that the registrant's disclosure controls and
     procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
     1940) are effective based on their evaluation of these controls and
     procedures as of a date within 90 days of the filing date of this report.

(b)  There were no changes in the registrant's internal control over financial
     reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
     1940) that occurred during the registrant's second fiscal quarter of the
     period covered by this report that have materially affected, or are
     reasonably likely to materially affect, the registrant's internal control
     over financial reporting.


ITEM 12.  EXHIBITS.

(a)(1)   Not applicable for semiannual report filings.

(a)(2)   Separate certifications by the registrant's principal executive officer
         and principal financial officer, pursuant to Section 302 of the
         Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment
         Company Act of 1940, are filed and attached hereto as Exhibit
         99.302CERT.

(a)(3)   Not applicable.

(b)      A certification by the registrant's chief executive officer and chief
         financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of
         2002, is furnished and attached hereto as Exhibit 99.906CERT.



                                   SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.


Registrant:   AMERICAN CENTURY VARIABLE PORTFOLIOS II, INC.



By:      /s/ Jonathan S. Thomas
         ----------------------------------------
         Name:  Jonathan S. Thomas
         Title: President


Date:    August 15, 2007



     Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.



By:      /s/ Jonathan S. Thomas
         ----------------------------------------
         Name:  Jonathan S. Thomas
         Title: President
                (principal executive officer)


Date:    August 15, 2007




By:      /s/ Robert J. Leach
         ----------------------------------------
         Name:  Robert J. Leach
         Title: Vice President, Treasurer, and
                Chief Financial Officer
                (principal financial officer)


Date:    August 15, 2007

EX-99.302CERT

                                                              EXHIBIT 99.302CERT


I, Jonathan S. Thomas, certify that:

1.   I have reviewed this report on Form N-CSR of American Century Variable
     Portfolios II, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material fact or omit to state a material fact necessary to make the
     statements made, in light of the circumstances under which such statements
     were made, not misleading with respect to the period covered by this
     report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this report, fairly present in all material
     respects the financial condition, results of operations, changes in net
     assets, and cash flows (if the financial statements are required to include
     a statement of cash flows) of the registrant as of, and for, the periods
     presented in this report;

4.   The registrant's other certifying officer and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Rule 30a-3(c) under the Investment Company Act of 1940) and internal
     control over financial reporting (as defined in Rule 30a-3(d) under the
     Investment Company Act of 1940) for the registrant and have:

     (a)  Designed such disclosure controls and procedures, or caused such
          disclosure controls and procedures to be designed under our
          supervision, to ensure that material information relating to the
          registrant, including its consolidated subsidiaries, is made known to
          us by others within those entities, particularly during the period in
          which this report is being prepared;

     (b)  Designed such internal control over financial reporting, or caused
          such internal control over financial reporting to be designed under
          our supervision, to provide reasonable assurance regarding the
          reliability of financial reporting and the preparation of financial
          statements for external purposes in accordance with generally accepted
          accounting principles;

     (c)  Evaluated the effectiveness of the registrant's disclosure controls
          and procedures and presented in this report our conclusions about the
          effectiveness of the disclosure controls and procedures, as of a date
          within 90 days prior to the filing date of this report based on such
          evaluation; and

     (d)  Disclosed in this report any change in the registrant's internal
          control over financial reporting that occurred during the second
          fiscal quarter of the period covered by this report that has
          materially affected, or is reasonably likely to materially affect, the
          registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer and I have disclosed to the
     registrant's auditors and the audit committee of the registrant's board of
     directors (or persons performing the equivalent functions):

     (a)  All significant deficiencies and material weaknesses in the design or
          operation of internal control over financial reporting which are
          reasonably likely to adversely affect the registrant's ability to
          record, process, summarize, and report financial information; and

     (b)  Any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          control over financial reporting.


Date:  August 15, 2007



/s/ Jonathan S. Thomas
- ---------------------------------------
Jonathan S. Thomas
President
(principal executive officer)





I, Robert J. Leach, certify that:

1.   I have reviewed this report on Form N-CSR of American Century Variable
     Portfolios II, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material fact or omit to state a material fact necessary to make the
     statements made, in light of the circumstances under which such statements
     were made, not misleading with respect to the period covered by this
     report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this report, fairly present in all material
     respects the financial condition, results of operations, changes in net
     assets, and cash flows (if the financial statements are required to include
     a statement of cash flows) of the registrant as of, and for, the periods
     presented in this report;

4.   The registrant's other certifying officer and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Rule 30a-3(c) under the Investment Company Act of 1940) and internal
     control over financial reporting (as defined in Rule 30a-3(d) under the
     Investment Company Act of 1940) for the registrant and have:

     (a)  Designed such disclosure controls and procedures, or caused such
          disclosure controls and procedures to be designed under our
          supervision, to ensure that material information relating to the
          registrant, including its consolidated subsidiaries, is made known to
          us by others within those entities, particularly during the period in
          which this report is being prepared;

     (b)  Designed such internal control over financial reporting, or caused
          such internal control over financial reporting to be designed under
          our supervision, to provide reasonable assurance regarding the
          reliability of financial reporting and the preparation of financial
          statements for external purposes in accordance with generally accepted
          accounting principles;

     (c)  Evaluated the effectiveness of the registrant's disclosure controls
          and procedures and presented in this report our conclusions about the
          effectiveness of the disclosure controls and procedures, as of a date
          within 90 days prior to the filing date of this report based on such
          evaluation; and

     (d)  Disclosed in this report any change in the registrant's internal
          control over financial reporting that occurred during the second
          fiscal quarter of the period covered by this report that has
          materially affected, or is reasonably likely to materially affect, the
          registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer and I have disclosed to the
     registrant's auditors and the audit committee of the registrant's board of
     directors (or persons performing the equivalent functions):

     (a)  All significant deficiencies and material weaknesses in the design or
          operation of internal control over financial reporting which are
          reasonably likely to adversely affect the registrant's ability to
          record, process, summarize, and report financial information; and

     (b)  Any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          control over financial reporting.


Date:  August 15, 2007



/s/ Robert J. Leach
- ---------------------------------------
Robert J. Leach
Vice President, Treasurer, and
Chief Financial Officer
(principal financial officer)

EX-99.906CERT

                                                              EXHIBIT 99.906CERT



    Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    ------------------------------------------------------------------------


     In connection with the shareholder report of American Century Variable
Portfolios II, Inc. (the "Registrant") on Form N-CSR for the period ending June
30, 2007 (the "Report"), we, the undersigned, certify, pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that:

     (1)  The Report fully complies with the requirements of Section 15(d) of
          the Securities Exchange Act of 1934; and

     (2)  The information contained in the Report fairly presents, in all
          material respects, the financial condition and results of operations
          of the Registrant.


Dated:  August 15, 2007


                                            /s/ Jonathan S. Thomas
                                            ------------------------------------
                                            Jonathan S. Thomas
                                            President
                                            (chief executive officer)



                                           /s/ Robert J. Leach
                                           -------------------------------------
                                           Robert J. Leach
                                           Vice President, Treasurer, and
                                           Chief Financial Officer
                                           (chief financial officer)