497K3B 1 0001.htm PROFILES

[front cover]

American Century
Fund Profile

[photo of woman on sitting on bench, photo of hand holding pencil]

California Tax-Free Money Market Fund

This profile summarizes key information about the fund that is included in the
fund's Prospectus. The fund's Prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest.

You may obtain the Prospectus and other information about the fund at no cost by
calling us at 1-800-345-2021, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.

July 27, 2000
Investor Class

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

CALIFORNIA TAX-FREE MONEY MARKET FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Tax-Free Money Market seeks safety of principal and high current
income that is exempt from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy high-quality, very short-term debt securities with
interest payments exempt from federal and California income taxes. Cities,
counties and other municipalities in California usually issue these
securities for public projects.

Additional information about California Tax-Free Money Market's investments
is available in its annual and semiannual reports. In these reports you will
find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

* An investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the fund.

* Because cash-equivalent securities are among the safest securities
available, the interest they pay is among the lowest for income-paying
securities. Accordingly, the yield on this fund will likely be lower than
funds that invest in longer-term or lower-quality securities.

* Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Tax-Free Money Market may have a higher level of risk than funds that invest
in a larger universe of securities.

FUND PERFORMANCE

The following bar chart shows the actual performance of California Tax-Free
Money Market's shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to year.
The bar chart and the performance information below are not intended to
indicate how the fund will perform in the future.

[data shown in bar chart]
Calendar Year-By-Year Returns(1)

1999 2.66%
1998 2.95%
1997 3.19%
1996 3.07%
1995 3.41%
1994 2.42%
1993 2.03%
1992 2.49%
1991 3.81%
1990 5.16%

(1) As of June 30, 2000, the end of the most recent calendar quarter,
California Tax-Free Money Market's year-to-date return was 1.54%.

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

Highest Lowest
California Tax-Free
Money Market 1.31% (2Q 1990) 0.44% (1Q 1994)

California Tax-Free Money Market American Century Investments

The following table shows the average annual total returns of the fund's
shares for the periods indicated. The Lipper California Tax-Exempt Money
Market Average, an unmanaged index that reflects no operating costs, is
included as a benchmark for performance comparisons. For current performance
information, including yields, please call us or access our Web site.

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 2000)
California Tax-Free
Money Market 2.94% 3.02% 3.01% 3.70%
Lipper California
Tax-Exempt
Money Market Average 2.76% 2.87% 2.98% 3.81%(2)

(1) The inception date for California Tax-Free Money Market is November 9,
1983.

(2)Since October 31, 1983, the date closest to the fund's inception for
which data are available.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

There are no sales loads, fees or other charges

* to buy fund shares directly from American Century

* to reinvest dividends in additional shares

* to exchange into the Investor Class shares of other American Century funds

* to redeem your shares

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

ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.50%(1)
Distribution and Service (12b-1) Fees None
Other Expenses 0.00%(2)
Total Annual Fund Operating Expenses 0.50%

(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.

(2) Other expenses, which include the fees and expenses of the fund's
independent trustees and their legal counsel, as well as interest, were
less than 0.005% for the most recent fiscal year.

EXAMPLE
Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above

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

1 year 3 years 5 years 10 years
$51 $160 $279 $627

Of course, actual costs may be higher or lower. Use this example
to compare the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. Identified below is the portfolio
manager who leads the team that manages California Tax-Free Money Market:

TODD PARDULA, Vice President and Portfolio Manager, has been a member of the
California Tax-Free Money Market team since May 1994. He joined American
Century in 1990. He has a bachelor's degree in finance from Santa Clara
University and is a Chartered Financial Analyst.

6. HOW DO I BUY FUND SHARES?

American Century offers several ways to purchase shares

* Complete and return an application along with an investment check payable
to American Century Investments

* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $2,500. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.

California Tax-Free Money Market Fund Profile

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in California Tax-Free
Money Market for shares in nearly 70 other mutual funds offered by American
Century. Depending on the options you select when you open your account,
some restrictions may apply. For your protection, some redemption requests
require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

Dividends are declared and available for redemption daily. Distributions
will generally be exempt from federal and California income taxes.
Distributions are reinvested automatically in additional shares unless you
choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as

* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online account access and transactions

You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.

Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.

If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability
to purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call
a Service Representative at 1-800-345-3533.

--------------------------------------------------------------------------------
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

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

AUTOMATED INFORMATION LINE
1-800-345-8765

Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]

FAX
816-340-7962

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

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

SH-PRF-21104 0007

Funds Distributor, Inc. and American Century Investment
Services, Inc., Distributors

[front cover]

American Century
Fund Profile

[photo of woman on sitting on bench, photo of hand holding pencil]

California Tax-Free Money Market Fund

You may obtain the Prospectus and other information about the fund at no cost by
calling us at 1-888-345-2071, accessing our Web site or visiting one of our
Investor Centers. See the back cover for additional telephone numbers and our
address.

July 27, 2000
Investor Class

[american century brokerage logo and text logo (reg. sm)]
American
Century
---------
Brokerage

CALIFORNIA TAX-FREE MONEY MARKET FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Tax-Free Money Market seeks safety of principal and high current
income that is exempt from California and federal income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy high-quality, very short-term debt securities with
interest payments exempt from California and federal income taxes. Cities,
counties and other municipalities in California usually issue these
securities for public projects.

Additional information about California Tax-Free Money Market's investments
is available in its annual and semi-annual reports. In these reports you
will find a discussion of the market conditions and investment strategies
that significantly affected the fund's performance during the most recent
fiscal period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

* An investment in the fund is not a bank deposit, and
it is not insured or guaranteed by the Federal Deposit Insurance Corporation
(FDIC) or any other government agency. Although the fund seeks to preserve
the value of your investment at $1.00 per share, it is possible to lose
money by investing in the fund.

FUND PERFORMANCE

[data shown in bar chart]
Calendar Year-By-Year Returns(1)

1999 2.66%
1998 2.95%
1997 3.19%
1996 3.07%
1995 3.41%
1994 2.42%
1993 2.03%
1992 2.49%
1991 3.81%
1990 5.16%

(1) As of June 30, 2000, the most recent calendar quarter, California
Tax-Free Money Market's year-to-date return was 1.54%.

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

Highest Lowest
California Tax-Free
Money Market 1.31% (2Q 1990) 0.44% (1Q 1994)

California Tax-Free Money Market American Century Investments

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 2000)
California Tax-Free
Money Market 2.94% 3.02% 3.01% 3.70%
Lipper California Average
Tax-Exempt
Money Market Average 2.76% 2.87% 2.98% 3.81%(2)

(1) The inception date for California Tax-Free Money Market is November
9, 1983.

(2) Since November 30, 1983, the date closest to the fund's inception
for which data are available.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

There are no sales loads, fees or other charges

* to buy fund shares directly from American Century

* to reinvest dividends in additional shares

* to exchange into the Investor Class shares of other American Century funds

* to redeem your shares

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

ANNUAL FUND OPERATING EXPENSES

(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

Management Fee 0.50%(1)
Distribution and Service (12b-1) Fees None
Other Expenses 0.00%(2)
Total Annual Fund Operating Expenses 0.50%

(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.

(2) Other expenses, which include the fees and expenses of the fund's
independent trustees and their legal counsel, as well as interest, were
less than 0.005% for the most recent fiscal year.

EXAMPLE

Assuming you . . .
* invest $10,000 in the fund
* redeem all of your shares at the end of the periods shown below
* earn a 5% return each year
* incur the same operating expenses as shown above

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

1 year 3 years 5 years 10 years
$51 $160 $279 $627

Of course, actual costs may be higher or lower. Use this
example to compare the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

6. HOW DO I BUY FUND SHARES?

American Century Brokerage offers several ways to purchase shares

* Complete and return a brokerage application along with an investment check
payable to American Century Brokerage

* Call us and send your investment by bank wire transfer

* If you already have an American Century Brokerage account, simply contact
us by writing, calling or accessing our Web site

Your initial investment in your brokerage account must be at least $2,500.
If your redemption activity causes the value of your brokerage account to
fall below this account minimum, your shares may be redeemed involuntarily.

California Tax-Free Money Market Fund Profile

7. HOW DO I SELL FUND SHARES?

The most convenient way for you to sell money market fund shares in your
brokerage account is to use our CheckWriting feature. If you do not have
checks, you can call us during business hours or send us a letter requesting
a redemption check or bank wire. Bank wires require a minimum redemption of
$1,000 and a $20 fee applies. In addition, we will automatically sell
sufficient shares in California Tax-Free Money Market when you direct us to
make other investments in your brokerage account.

Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests may
require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

Dividends are declared and available for redemption daily. Distributions
will generally be exempt from California and federal income taxes.
Distributions are reinvested automatically in additional shares unless you
choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century Brokerage offers several ways to make it easier for you to
manage your account, such as

* telephone transactions
* wire and electronic funds transfers
* TeleSelect Automated Information and Trading Line transactions
* 24-hour online account access and transactions

You will find more information about these choices in our Brokerage
Information Kit, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

--------------------------------------------------------------------------------
AMERICAN CENTURY BROKERAGE, INC.
P.O. BOX 419146
KANSAS CITY, MISSOURI 64141-6146

BROKERAGE CLIENT RELATIONS ASSOCIATE
1-888-345-2071

TELESELECT AUTOMATED INFORMATION
AND TRADING LINE
1-888-345-2091

Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]

FAX
650-967-9627

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

SEP-IRA SERVICES
1-800-345-3533, ext. 4210

BK-PRF-21105 0007

Funds Distributor, Inc. and American Century Investment
Services, Inc., Distributors

[front cover]

AMERICAN CENTURY
Fund Profile

[photo of woman on sitting on bench, photo of hand holding pencil]

California Municipal Money Market Fund

July 27, 2000
Investor Class

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

CALIFORNIA MUNICIPAL MONEY MARKET FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Municipal Money Market seeks safety of principal and high current
income that is exempt from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers also may buy high-quality, very short-term debt securities
whose payments are exempt from federal and California income taxes, but not
the federal alternative minimum tax. Cities, counties and other
municipalities in California usually issue these securities (called private
activity bonds) to fund for-profit private projects, such as athletic
stadiums, airports and apartment buildings.

Additional information about California Municipal Money Market's investments
is available in its annual and semi-annual reports. In these reports you
will find a discussion of the market conditions and investment strategies
that significantly affected the fund's performance during the most recent
fiscal period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

* Some or all of the fund's income may be subject to the federal alternative
minimum tax.

* Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Municipal Money Market may have a higher level of risk than funds that
invest in a larger universe of securities.

Fund Performance

The following bar chart shows the actual performance of California Municipal
Money Market's shares for each full calendar year since the fund's inception
on December 31, 1990. The bar chart indicates the volatility of the fund's
historical returns from year to year. The bar chart and the performance
information below are not intended to indicate how the fund will perform in
the future.

[data shown in bar chart]
Calendar Year-By-Year Returns(1)

1999 2.79%
1998 3.05%
1997 3.23%
1996 3.10%
1995 3.49%
1994 2.47%
1993 2.09%
1992 2.95%
1991 4.61%

(1) As of June 30, 2000, the most recent calendar quarter, California
Municipal Money Market's year-to-date return was 1.59%.

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

Highest Lowest
California Municipal
Money Market 1.18% (3Q 1991) 0.47% (1Q 1994)

California Municipal Money Market American Century Investments

performance information, including yields, please call us or access our Web
site.

1 YEAR 5 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 2000)
California Municipal
Money Market 3.04% 3.10% 3.09%
Lipper California Tax-Exempt
Money Market Average 2.76% 2.87% 2.86%

(1) The inception date for California Municipal Money Market is December
31, 1990.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

There are no sales loads, fees or other charges

* to buy fund shares directly from American Century

* to reinvest dividends in additional shares

* to exchange into the Investor Class shares of other American Century funds

* to redeem your shares

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

(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.

(2) Other expenses, which include the fees and expenses of the fund's
independent trustees and their legal counsel, as well as interest, were
less than 0.005% for the most recent fiscal year.

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

1 year 3 years 5 years 10 years
$51 $160 $279 $627

Of course, actual costs may be higher or lower. Use this
example to compare the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

Todd Pardula, Vice President and Portfolio Manager, has been a member of the
California Municipal Money Market team since May 1994. He joined American
Century in 1990. He has a bachelor's degree in finance from Santa Clara
University and is a Chartered Financial Analyst.

6. HOW DO I BUY FUND SHARES?

American Century offers several ways to purchase shares

* Complete and return an application along with an investment check payable
to American Century Investments

* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $2,500. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.

California Municipal Money Market Fund Profile

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by writing or
calling us. You also may exchange your shares in California Municipal Money
Market for shares in nearly 70 other mutual funds offered by American Century.
Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests require
a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

Dividends are declared and available for redemption daily. Distributions will
generally be exempt from federal and California income taxes. Some or all of
the fund's income may, however, be subject to the federal alternative minimum
tax. Consult your tax advisor for information about whether you are subject to
the federal alternative minimum tax. Distributions are reinvested
automatically in additional shares unless you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage your
account, such as

* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online account access and transactions

You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.

If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability to
purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call a
Service Representative at 1-800-345-3533.

--------------------------------------------------------------------------------
American Century Investments
P.O. Box 419200
Kansas City, Missouri 64141-6200

Investor Relations
1-800-345-2021 or 816-531-5575

Automated Information Line
1-800-345-8765

Visit our Web site at www.americancentury.com [link to web site with arrow]

Fax
816-340-7962

Telecommunications Device for the Deaf
1-800-634-4113 or 816-444-3485

Business, Not-For-Profit and
Employer-Sponsored Retirement Plans
1-800-345-3533

SH-PRF-21106 0007

Funds Distributor, Inc. and American Century Investment
Services, Inc., Distributors

[front cover]

American Century
Fund Profile

[photo of woman on sitting on bench, photo of hand holding pencil]

California Limited-Term Tax-Free Fund

July 27, 2000
Investor Class

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

CALIFORNIA LIMITED-TERM TAX-FREE FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Limited-Term Tax-Free seeks safety of principal and high current
income that is exempt from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy quality, short-term debt securities with interest
payments exempt from federal and California income taxes. Cities, counties
and other municipalities in California usually issue these securities for
public projects.

The fund may also use futures contracts and options to pursue its investment
objective.

During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash-equivalents. If it does, it
may not achieve its investment objective and may generate taxable income.

The weighted average maturity of the fund is expected to be five years or
less.

Additional information about California Limited-Term Tax-Free's investments
is available in its annual and semiannual reports. In these reports you will
find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk for
California Limited-Term Tax-Free is higher than for funds that have shorter
weighted average maturities, such as money market funds.

* The fund may invest part of its assets in securities rated in the lowest
investment grade category (for example, Baa or BBB category). The issuers of
these securities are more likely to pose a credit risk, that is, to have
problems making interest and principal payments, than issuers of higher
rated securities.

* Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Limited-Term Tax-Free may have a higher level of risk than funds that invest
in a larger universe of securities.

* As with all funds, your shares may be worth more or less at any given time
than the price you paid for them. As a result, it is possible to lose money
by investing in the fund.

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

In summary, California Limited-Term Tax-Free is intended for investors who
seek safety of principal and high current income that is exempt from federal
and California income taxes through a municipal securities fund, and who are
willing to accept the risks associated with the fund's investment strategy.

FUND PERFORMANCE

The following bar chart shows the actual performance of California
Limited-Term Tax-Free's shares for each full calendar year since the fund's
inception on June 1, 1992. The bar chart indicates the volatility of the
fund's historical returns from year to year. The bar chart and the
performance information below are not intended to indicate how the fund will
perform in the future.

California Limited-Term Tax-Free American Century Investments

[data shown in bar chart]
Calendar Year-By-Year Returns(1)

1999 1.13%
1998 4.91%
1997 5.34%
1996 3.93%
1995 8.32%
1994 -0.61%
1993 5.92%

(1) As of June 30, 2000, the end of the most recent calendar quarter,
California Limited-Term Tax-Free's year-to-date return was 3.06%.

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

Highest Lowest
California Limited-Term
Tax-Free 2.99% (1Q 1995) -1.35% (1Q 1994)

The following table shows the average annual total returns of the fund's
shares for the periods indicated. The Lehman Brothers 3-Year Municipal Bond
Index, an unmanaged index that reflects no operating costs, is included as a
benchmark for performance comparisons.

1 YEAR 5 YEARS LIFE OF FUND(1)

AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 2000)
California Limited-Term
Tax-Free 3.98% 4.29% 4.45%
Lehman Brothers 3-Year
Municipal Bond Index 3.73% 4.65% 4.90%

(1) The inception date for California Limited-Term Tax-Free is June 1, 1992.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

There are no sales loads, fees or other charges

* to buy fund shares directly from American Century

* to reinvest dividends in additional shares

* to exchange into the Investor Class shares of other American Century funds

* to redeem your shares

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

ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.51%(1)
Distribution and Service (12b-1) Fees None
Other Expenses 0.00%(2)
Total Annual Fund Operating Expenses 0.51%

(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.

(2) Other expenses include the fees and expenses of the fund's
independent trustees and their legal counsel, as well as interest, were
less than 0.005% for the most recent fiscal year.

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

1 year 3 years 5 years 10 years
$52 $163 $285 $640

Of course, actual costs may be higher or lower. Use this
example to compare the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

American Century Investment Management, Inc. provides investment advisory
and management services for the fund. American Century uses teams of
portfolio managers, assistant portfolio managers and analysts working
together to manage its mutual funds. Identified below are the portfolio
managers who lead the team that manages California Limited-Term Tax-Free:

TODD PARDULA, Vice President and Portfolio Manager, has been a member of the
California Limited-Term Tax-Free team since June 1999. He joined American
Century in 1990. He has a bachelor's degree in finance from Santa Clara
University and is a Chartered Financial Analyst.

G. DAVID MACEWEN, Senior Vice President and Senior Portfolio Manager, has
been a member of the California Limited-Term Tax-Free team since June 1992.
He joined American Century in 1991. He has a bachelor's degree in economics
from Boston University and an MBA in finance from the University of
Delaware.

California Limited-Term Tax-Free Fund Profile

6. HOW DO I BUY FUND SHARES?

American Century offers several ways to purchase shares

* Complete and return an application along with an investment check payable to
American Century Investments

* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $5,000. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by writing or
calling us. You also may exchange your shares in California Limited-Term
Tax-Free for shares in nearly 70 other mutual funds offered by American
Century. Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests require
a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

California Limited-Term Tax-Free pays distributions of substantially all of
its income monthly. Distributions will generally be exempt from federal and
California income taxes. Distributions are reinvested automatically in
additional shares unless you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage your
account, such as

* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online account access and transactions

You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.

If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability to
purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call a
Service Representative at 1-800-345-3533.

--------------------------------------------------------------------------------
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

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

AUTOMATED INFORMATION LINE
1-800-345-8765

Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]

FAX
816-340-7962

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

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

SH-PRF-21107 0007

Funds Distributor, Inc. and American Century Investment
Services, Inc., Distributors

[front cover]

American Century
Fund Profile

[photo of woman on sitting on bench, photo of hand holding pencil]

California Intermediate-Term Tax-Free Fund

July 27, 2000
Investor Class

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

CALIFORNIA INTERMEDIATE-TERM TAX-FREE FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Intermediate-Term Tax-Free seeks safety of principal and high
current income that is exempt from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy quality, intermediate-term debt securities with
interest payments exempt from federal and California income taxes. Cities,
counties and other municipalities in California usually issue these
securities for public projects.

The fund may also use futures contracts and options to pursue its investment
objective.

During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash- equivalents. If it does,
it may not achieve its investment objective and may generate taxable income.

The weighted average maturity of the fund is expected to be between five and
10 years.

Additional information about California Intermediate-Term Tax-Free's
investments is available in its annual and semiannual reports. In these
reports you will find a discussion of the market conditions and investment
strategies that significantly affected the fund's performance during the
most recent fiscal period. You may get these reports at no cost by calling
us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk for
California Intermediate-Term Tax-Free is higher than for funds that have
shorter weighted average maturities, such as money market and short-term
bond funds.

* Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Intermediate-Term Tax-Free may have a higher level of risk than funds that
invest in a larger universe of securities.

* As with all funds, the value of your shares may be worth more or less at
any given time than the price you paid for them. As a result, it is possible
to lose money by investing in the fund.

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

In summary, California Intermediate-Term Tax-Free is intended for investors
who seek safety of principal and high current income that is exempt from
federal and California income taxes through a municipal securities fund, and
who are willing to accept the risks associated with the fund's investment
strategy.

FUND PERFORMANCE

The following bar chart shows the actual performance of California
Intermediate-Term Tax-Free's shares for each of the last 10 calendar years.
The bar chart indicates the volatility of the fund's historical returns from
year to year. The bar chart and the performance information below are not
intended to indicate how the fund will perform in the future.

California Intermediate-Term Tax-Free American Century Investments

[data shown in bar chart]
Calendar Year-By-Year Returns(1)

1999 -1.09%
1998 5.59%
1997 7.45%
1996 4.25%
1995 13.25%
1994 -3.72%
1993 10.69%
1992 7.09%
1991 10.38%
1990 6.99%

(1) As of June 30, 2000, the end of the most recent calendar quarter,
California Intermediate-Term Tax-Free's year-to-date return was 4.27%

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

Highest Lowest
California Intermediate-
Term Tax-Free 5.25% (1Q 1995) -3.98% (1Q 1994)

The following table shows the average annual total returns of the fund's
shares for the periods indicated. The Lehman Brothers 5-Year General
Obligation Bond Index, an unmanaged index that reflects no operating costs,
is included as a benchmark for performance comparisons.

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 2000)
California Intermediate-
Term Tax-Free 4.43% 5.21% 6.15% 6.47%
Lehman Brothers
5-Year General
Obligation Bond Index 3.66% 5.01% 6.17% 7.09%(2)

(1) The inception date for California Intermediate-Term Tax-Free is
November 9, 1983.

(2) Since October 31, 1983, the date nearest the fund's inception for
which data are available.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

There are no sales loads, fees or other charges

* to buy fund shares directly from American Century

* to reinvest dividends in additional shares

* to exchange into the Investor Class shares of other American Century funds

* to redeem your shares

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

(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.

(2) Other expenses, which include the fees and expenses of the fund's
independent trustees and their legal counsel, as well as interest, were
less than 0.005% for the most recent fiscal year.

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

1 year 3 years 5 years 10 years
$52 $163 $285 $640

Of course, actual costs may be higher or lower. Use this example to
compare the costs of investing in other funds.

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

COLLEEN M. DENZLER, Vice President, Portfolio Manager and Director of
Fixed-Income Investment Liaison, has been a member of the California
Intermediate-Term Tax-Free team since January 1996. Prior to joining
American Century, she was a Portfolio Manager with Calvert Group for 10
years, specializing in state tax-exempt portfolios. She has a bachelor's
degree in finance from Radford University and is a Chartered Financial
Analyst.

California Intermediate-Term Tax-Free Fund Profile

6. HOW DO I BUY FUND SHARES?

American Century offers several ways to purchase shares

* Complete and return an application along with an investment check payable to
American Century Investments

* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $5,000. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by writing or
calling us. You also may exchange your shares in California Intermediate-Term
Tax-Free for shares in nearly 70 other mutual funds offered by American
Century. Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests require
a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

California Intermediate-Term Tax-Free pays distributions of substantially all
of its income monthly. Distributions will generally be exempt from federal and
California income taxes. Distributions are reinvested automatically in
additional shares unless you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage your
account, such as:

* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online account access and transactions

You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web site
or visiting one of our Investor Centers.

Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.

If you own or are considering purchasing fund shares through an
employer-sponsored retirement plan or financial intermediary, your ability to
purchase shares of the fund, exchange them for shares of other American
Century funds, and redeem them will depend on the terms of your plan or
financial intermediary. If you have questions about investing in an
employer-sponsored retirement plan or through a financial intermediary, call a
Service Representative at 1-800-345-3533.

--------------------------------------------------------------------------------
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

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

AUTOMATED INFORMATION LINE
1-800-345-8765

Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]

FAX
816-340-7962

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

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

SH-PRF-21108 0007

Funds Distributor, Inc. and American Century Investment
Services, Inc., Distributors

[front cover]

American Century
Fund Profile

[photo of woman on sitting on bench, photo of hand holding pencil]

California Long-Term Tax-Free Fund

July 27, 2000
Investor Class

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

CALIFORNIA LONG-TERM TAX-FREE FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Long-Term Tax-Free seeks safety of principal and high current
income that is exempt from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy quality, long-term debt securities with interest
payments exempt from federal and California income taxes. Cities, counties
and other municipalities in California usually issue these securities for
public projects.

The fund may also use futures contracts and options to pursue its investment
objective.

During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash- equivalents. If it does,
it may not achieve its investment objective and may generate taxable income.

The weighted average maturity of the fund is expected to be 10 years or
longer.

Additional information about California Long-Term Tax-Free's investments is
available in its annual and semiannual reports. In these reports you will
find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk for
California Long-Term Tax-Free is higher than for funds that have shorter
weighted average maturities, such as money market and short-term and
intermediate-term bond funds.

* Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Long-Term Tax-Free may have a higher level of risk than funds that invest in
a larger universe of securities.

* As with all funds, your shares may be worth more or less at any given time
than the price you paid for them. As a result, it is possible to lose money
by investing in the fund.

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

In summary, California Long-Term Tax-Free is intended for investors who seek
safety of principal and high current income that is exempt from federal and
California income taxes through a municipal securities fund, and who are
willing to accept the risks associated with the fund's investment strategy.

California Long-Term Tax-Free American Century Investments

FUND PERFORMANCE

The following bar chart shows the actual performance of California Long-Term
Tax-Free's shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to year.
The bar chart and the performance information below are not intended to
indicate how the fund will perform in the future.

[data shown in bar chart]
Calendar Year-By-Year Returns(1)

1999 -5.22%
1998 6.31%
1997 9.74%
1996 3.59%
1995 19.80%
1994 -6.51%
1993 13.74%
1992 8.15%
1991 11.80%
1990 6.60%

(1) As of June 30, 2000, the end of the most recent calendar quarter,
California Long-Term Tax-Free's year-to-date return was 6.00%.

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

Highest Lowest
California Long-Term
Tax-Free 7.13% (1Q 1995) -5.71% (1Q 1994)

The following table shows the average annual total returns of the fund's
shares for the periods indicated. The Lehman Brothers Long-Term Municipal
Bond Index, an unmanaged index that reflects no operating costs, is included
as a benchmark for performance comparisons.

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 2000)
California Long-Term
Tax-Free 2.61% 5.94% 6.90% 7.69%
Lehman Brothers
Long-Term
Municipal Bond Index 0.89% 6.19% 7.54% 9.42%(2)

(1) The inception date for California Long-Term Tax-Free is November 9,
1983.

(2) Since October 31, 1983, the date nearest the fund's inception for
which data are available.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

There are no sales loads, fees or other charges

* to buy fund shares directly from American Century

* to reinvest dividends in additional shares

* to exchange into the Investor Class shares of other American Century fund

* to redeem your shares

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

(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.

(2) Other expenses, which include the fees and expenses of the fund's
independent trustees and their legal counsel, as well as interest, were
less than 0.005% for the most recent fiscal year.

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

1 year 3 years 5 years 10 years
$52 $163 $285 $640

Of course, actual costs may be higher or lower. Use this
example to compare the costs of investing in other funds.

California Long-Term Tax-Free Fund Profile

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

G. DAVID MACEWEN, Senior Vice President and Senior Portfolio Manager, has
been a member of the California Long-Term Tax-Free team since May 1991. He
joined American Century in 1991. He has a bachelor's degree in economics
from Boston University and an MBA in finance from the University of
Delaware.

6. HOW DO I BUY FUND SHARES?

American Century offers several ways to purchase shares

* Complete and return an application along with an investment check payable
to American Century Investments

* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $5,000. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in California Long-Term
Tax-Free for shares in nearly 70 other mutual funds offered by American
Century. Depending on the options you select when you open your account,
some restrictions may apply. For your protection, some redemption requests
require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

California Long-Term Tax-Free pays distributions of substantially all of its
income monthly. Distributions will generally be exempt from federal and
California income taxes. Distributions are reinvested automatically in
additional shares unless you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as

* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online account access and transactions

You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.

Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.

--------------------------------------------------------------------------------
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

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

AUTOMATED INFORMATION LINE
1-800-345-8765

FAX
816-340-7962

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

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

Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]

SH-PRF-21109 0007

Funds Distributor, Inc. and American Century Investment
Services, Inc., Distributors

[front cover]

American Century
Fund Profile

[photo of woman on sitting on bench, photo of hand holding pencil]

California High-Yield Municipal Fund

July 27, 2000
Investor Class

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

CALIFORNIA HIGH-YIELD MUNICIPAL FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California High-Yield Municipal seeks high current income that is exempt
from federal and California income taxes.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy long- and intermediate-term debt securities with
interest payments exempt from federal and California income taxes. Cities,
counties and other municipalities in the 50 states and U.S. territories
usually issue these securities for public projects.

The fund managers also may buy long- and intermediate-term debt securities
whose interest payments are exempt from regular federal and California
income taxes, but not the federal alternative minimum tax. Cities, counties
and other municipalities in California usually issue these securities
(called private activity bonds) to fund for-profit private projects, such as
athletic stadiums, airports and apartment buildings. Between 10% and 30% of
the fund's total assets may be invested in these securities.

The fund managers buy securities rated below investment- grade, including
so-called junk bonds and bonds that are in technical or monetary default.
Issuers of these securities often have short financial histories,
questionable credit, or problems making interest and principal payments.

During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash- equivalents. If it does,
it may not achieve its investment objective and may generate taxable income.

Additional information about California High-Yield Municipal's investments
is available in its annual and semi-annual reports. In these reports you
will find a discussion of the market conditions and investment strategies
that significantly affected the fund's performance during the most recent
fiscal period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

* The value of the fund's shares depends on the value of the securities it
owns and the income they produce. When interest rates change, the fund's
share value will be affected. Generally, when interest rates rise, the
fund's share value will decline. The opposite is true when interest rates
decline. This interest rate risk is higher for the fund than for funds that
have shorter weighted average maturities, such as money market and
short-term bond funds.

* Issuers of high-yield securities are more vulnerable to real or perceived
economic changes (such as an economic downturn or a prolonged period of
rising interest rates), political changes or adverse developments specific
to the issuer. Adverse economic, political or other developments may be more
likely to cause an issuer of lower-quality bonds to default on its principal
and interest obligations.

* The market for lower-quality securities is generally less liquid than the
market for higher-quality securities.

* Adverse publicity and investor perceptions, as well as new or proposed
laws, also may have a greater negative impact on the market for
lower-quality securities.

* Some or all of the fund's income may be subject to the federal alternative
minimum tax.

* Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
High-Yield Municipal may have a higher level of risk than funds that invest
in a larger universe of securities.

* As with all funds, the value of your shares may be worth more or less at
any given time than the price you paid for them. As a result, it is possible
to lose money by investing in the fund.

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

In summary, California High-Yield Municipal is intended for investors who
seek high current income that is exempt from federal and California income
taxes through a municipal securities fund, and who are willing to accept the
risks associated with the fund's investment strategy.

California High-Yield Municipal American Century Investments

FUND PERFORMANCE

The following bar chart shows the actual performance of California
High-Yield Municipal's shares for each of the last 10 calendar years. The
bar chart indicates the volatility of the fund's historical returns from
year to year. The bar chart and the performance information below are not
intended to indicate how the fund will perform in the future.

[data shown in bar chart]
Calendar Year-By-Year Returns(1)

1999 -3.31%
1998 6.73%
1997 10.50%
1996 5.89%
1995 18.29%
1994 -5.36%
1993 13.18%
1992 9.17%
1991 10.91%
1990 5.65%

(1) As of June 30, 2000, the end of the most recent calendar quarter,
California High-Yield Municipal's year-to-date return was 4.83%.

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

Highest Lowest
California High-Yield
Municipal 7.18% (1Q 1995) -4.54% (1Q 1994)

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 2000)
California High-Yield
Municipal 1.97% 6.49% 7.06% 6.19%
Lehman Brothers
Long-Term
Municipal Bond Index 0.89% 6.19% 7.54% 7.64%

(1) The inception date for California High-Yield Municipal is December
30, 1986.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

There are no sales loads, fees or other charges

* to buy fund shares directly from American Century

* to reinvest dividends in additional shares

* to exchange into the Investor Class shares of other American Century
funds

* to redeem your shares

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

ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee 0.54%(1)
Distribution and Service (12b-1) Fees None
Other Expenses 0.00%(2)
Total Annual Fund Operating Expenses 0.54%

(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.

(2) Other expenses, which include the fees and expenses of the fund's
independent trustees and their legal counsel, as well as interest, were
less than 0.005% for the most recent fiscal year.

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

1 year 3 years 5 years 10 years
$55 $173 $301 $676

Of course, actual costs may be higher or lower. Use this
example to compare the costs of investing in other funds.

California High-Yield Municipal Fund Profile

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

STEVEN M. PERMUT, Vice President, Portfolio Manager and Director of
Municipal Research, has been a member of the California High-Yield Municipal
team since January 1988. Mr. Permut joined American Century in 1987. He has
a bachelor's degree in business and geography from the State University of
New York-Oneonta and an MBA in finance from Golden Gate University-San
Francisco.

6. HOW DO I BUY FUND SHARES?

American Century offers several ways to purchase shares

* Complete and return an application along with an investment check payable
to American Century Investments

* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $5,000. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in California High-Yield
Municipal for shares in nearly 70 other mutual funds offered by American
Century. Depending on the options you select when you open your account,
some restrictions may apply. For your protection, some redemption requests
require a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

California High-Yield Municipal pays distributions of substantially all of
its income monthly. Distributions will generally be exempt from federal and
California income taxes. Some or all of the fund's income may, however, be
subject to the federal alternative minimum tax. Consult your tax advisor for
information about whether you are subject to the federal alternative minimum
tax. Distributions are reinvested automatically in additional shares unless
you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as

* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online account access and transactions

You will find more information about these choices in Your Guide to American
Century Services, which you may request by calling us, accessing our Web
site or visiting one of our Investor Centers.

Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.

--------------------------------------------------------------------------------
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

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

AUTOMATED INFORMATION LINE
1-800-345-8765

Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]

FAX
816-340-7962

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

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

SH-PRF-21110 0007

Funds Distributor, Inc. and American Century Investment
Services, Inc., Distributors

[front cover]

American Century
Fund Profile

[photo of woman on sitting on bench, photo of hand holding pencil]

California Insured Tax-Free Fund

July 27, 2000
Investor Class

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

CALIFORNIA INSURED TAX-FREE FUND

1. WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

California Insured Tax-Free seeks safety of principal and high current
income that is exempt from federal and California income taxes through
investment in insured California municipal securities.

2. WHAT IS THE FUND'S INVESTMENT STRATEGY?

The fund managers buy long-term insured debt securities with interest
payments exempt from federal and California income taxes. Cities, counties
and other municipalities in California usually issue these securities for
public projects.

The fund's investments are insured. This is significant because

* the credit risk is less than for funds that invest in long-term debt
securities without insurance, and

* potential income is lower than for funds that invest in long-term debt
securities without insurance

A debt security's insurance cannot be cancelled and it guarantees that
interest and other payments will be made as scheduled.

The weighted average maturity of the fund is expected to be 10 years or
longer.

The fund also may use futures contracts and options to pursue its investment
objective.

During unusual market conditions, the fund is permitted to keep a
significant amount of its assets in cash or cash- equivalents. If it does,
it may not achieve its investment objective and may generate taxable income.

Additional information about California Insured Tax-Free's investments is
available in its annual and semiannual reports. In these reports you will
find a discussion of the market conditions and investment strategies that
significantly affected the fund's performance during the most recent fiscal
period. You may get these reports at no cost by calling us.

3. WHAT ARE THE SIGNIFICANT RISKS OF INVESTING IN THE FUND?

* When interest rates change, the fund's share value will be affected.
Generally, when interest rates rise, the fund's share value will decline.
The opposite is true when interest rates decline. The interest rate risk for
California Insured Tax-Free is higher than for funds that have shorter
weighted average maturities, such as money market and short-term and
intermediate-term bond funds.

* Because the fund invests primarily in California municipal securities, it
will be sensitive to events that affect California's economy. California
Insured Tax-Free may have a higher level of risk than funds that invest in a
larger universe of securities.

* As with all funds, the value of your shares may be worth more or less at
any given time than the price you paid for them. As a result, it is possible
to lose money by investing in the fund.

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

In summary, California Insured Tax-Free is intended for investors who seek
safety of principal and high current income that is exempt from federal and
California income taxes through a municipal securities fund, and who are
willing to accept the risks associated with the fund's investment strategy.

California Insured Tax-Free American Century Investments

FUND PERFORMANCE

The following bar chart shows the actual performance of California Insured
Tax-Free's shares for each of the last 10 calendar years. The bar chart
indicates the volatility of the fund's historical returns from year to year.
The bar chart and the performance information below are not intended to
indicate how the fund will perform in the future.

[data shown in bar chart]
Calendar Year-By-Year Returns(1)

1999 -4.41%
1998 6.09%
1997 9.34%
1996 3.70%
1995 19.03%
1994 -6.55%
1993 13.45%
1992 9.19%
1991 11.27%
1990 6.76%

(1) As of June 30, 2000, the end of the most recent calendar quarter,
California Insured Tax-Free's year-to-date return was 5.37%.

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

Highest Lowest
California Insured
Tax-Free 7.00% (1Q 1995) -6.68% (1Q 1994)

1 YEAR 5 YEARS 10 YEARS LIFE OF FUND(1)
AVERAGE ANNUAL TOTAL RETURNS (PERIOD ENDED JUNE 30, 2000)
California Insured
Tax-Free 2.95% 5.74% 6.85% 6.24%
Lehman Brothers
Long-Term
Municipal Bond Index 0.89% 6.19% 7.54% 7.64%

(1) The inception date for California Insured Tax-Free is December 30, 1986.

4. WHAT ARE THE FUND'S FEES AND EXPENSES?

There are no sales loads, fees or other charges

* to buy fund shares directly from American Century

* to reinvest dividends in additional shares

* to exchange into the Investor Class shares of other American Century
funds

* to redeem your shares

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

(1) Based on expenses incurred during the fund's most recent fiscal
year. The fund has a stepped fee schedule. As a result, the fund's
management fee rate generally decreases as fund assets increase.

(2) Other expenses, which include the fees and expenses of the fund's
independent trustees and their legal counsel, as well as interest, were
less than 0.005% for the most recent fiscal year.

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

1 year 3 years 5 years 10 years
$52 $163 $285 $640

Of course, actual costs may be higher or lower. Use this
example to compare the costs of investing in other funds.

California Insured Tax-Free Fund Profile

5. WHO ARE THE FUND'S INVESTMENT ADVISOR AND PORTFOLIO MANAGERS?

American Century Investment Management, Inc. provides investment advisory and
management services for the fund. American Century uses teams of portfolio
managers, assistant portfolio managers and analysts working together to
manage its mutual funds. Identified below is the portfolio manager who leads
the team that manages California Insured Tax-Free:

G. DAVID MACEWEN, Senior Vice President and Senior Portfolio Manager, has
been a member of the California Insured Tax-Free team since May 1991. He
joined American Century in 1991. He has a bachelor's degree in economics from
Boston University and an MBA in finance from the University of Delaware.

6. HOW DO I BUY FUND SHARES?

American Century offers several ways to purchase shares

* Complete and return an application along with an investment check payable
to American Century Investments

* If you already have an American Century account, call us or access our Web
site to exchange shares from another American Century fund

* Call us and send your investment by bank wire transfer

Your initial investment must be at least $5,000. If your redemption activity
causes the value of your account to fall below this account minimum, your
shares may be redeemed involuntarily.

7. HOW DO I SELL FUND SHARES?

You may sell all or part of your fund shares on any business day by writing
or calling us. You also may exchange your shares in California Insured
Tax-Free for shares in nearly 70 other mutual funds offered by American
Century. Depending on the options you select when you open your account, some
restrictions may apply. For your protection, some redemption requests require
a signature guarantee.

8. HOW ARE FUND DISTRIBUTIONS MADE AND TAXED?

California Insured Tax-Free pays distributions of substantially all of its
income monthly. Distributions will generally be exempt from federal and
California income taxes. Distributions are reinvested automatically in
additional shares unless you choose another option.

9. WHAT SERVICES ARE AVAILABLE?

American Century offers several ways to make it easier for you to manage
your account, such as

* telephone transactions
* wire and electronic funds transfers
* 24-hour Automated Information Line transactions
* 24-hour online account access and transactions

You will find more information about these choices in Your Guide to
American Century Services, which you may request by calling us, accessing
our Web site or visiting one of our Investor Centers.

Information contained in the services guide pertains to shareholders who
invest directly with American Century rather than through an
employer-sponsored retirement plan or financial intermediary.

--------------------------------------------------------------------------------
AMERICAN CENTURY INVESTMENTS
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200

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

AUTOMATED INFORMATION LINE
1-800-345-8765

Visit our Web site at WWW.AMERICANCENTURY.COM [link to web site with arrow]

FAX
816-340-7962

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

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

SH-PRF-21111 0007

Funds Distributor, Inc. and American Century Investment
Services, Inc., Distributors