UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
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__________________
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FORM
N-1A
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__________________
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REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
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T
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Pre-Effective Amendment
No.
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£
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Post-Effective Amendment No.
45
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T
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and/or
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REGISTRATION
STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
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T
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Amendment No. 49
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T
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(Check
appropriate box or boxes.)
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__________________
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American
Century California Tax-Free and Municipal Funds
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__________________
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4500
MAIN STREET, KANSAS CITY, MISSOURI
64111
(Address of Principal Executive
Offices) (Zip
Code)
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REGISTRANT'S
TELEPHONE NUMBER, INCLUDING AREA CODE: (816)
531-5575
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CHARLES
A. ETHERINGTON
4500
MAIN STREET, KANSAS CITY,
MISSOURI 64111
(Name and Address of
Agent for Service)
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Approximate
Date of Proposed Public Offering: January 1, 2010
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|
It
is proposed that this filing will become effective (check appropriate
box)
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£
|
immediately
upon filing pursuant to paragraph (b)
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£
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on
(date) pursuant to paragraph (b)
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£
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60
days after filing pursuant to paragraph (a)(1)
|
T
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on
January 1, 2010 pursuant to paragraph (a)(1)
|
£
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75
days after filing pursuant to paragraph (a)(2)
|
£
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on
(date) pursuant to paragraph (a)(2) of rule 485.
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If
appropriate, check the following box:
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|
£
|
this
post-effective amendment designates a new effective date for a previously
filed post-effective amendment.
|
January
1, 2010
|
American
Century Investments
Prospectus
|
California
Tax-Free Money Market Fund
Investor
Class (BCTXX)
|
Fund
Summary
|
2
|
Investment
Objective
|
2
|
Fees
and Expenses
|
2
|
Principal
Investments, Principal Risks and Performance
|
3
|
Investment
Advisor
|
4
|
Purchase and
Sale of Fund Shares
|
4
|
Tax
Information
|
4
|
Payments to
Broker-Dealers and Other Financial Intermediaries
|
4
|
Objectives,
Strategies and Risks
|
5
|
Basics
of Fixed-Income Investing
|
6
|
Management
|
8
|
Investing
Directly with American Century Investments
|
9
|
Investing
Through a Financial Intermediary
|
11
|
Additional
Policies Affecting Your Investment
|
13
|
Share
Price and Distributions
|
16
|
Taxes
|
17
|
Financial
Highlights
|
19
|
Shareholder Fees (fees
paid directly from your investment)
|
|
Investor
|
|
Maximum
Account Maintenance Fee
|
$25(1)
|
Annual Fund Operating
Expenses (expenses that you pay each year as a percentage of the
value of your investment)
|
|
Investor
|
|
Management
Fee
|
0.49%
|
Distribution
and Service (12b-1) Fees
|
None
|
Other
Expenses
|
0.06%
|
Total
Annual Fund Operating Expenses
|
0.55%
|
1
|
Applies
only to investors whose total eligible investments with American Century
Investments are less than $10,000.
|
1
year
|
3
years
|
5
years
|
10
years
|
|
Investor
Class
|
$56
|
$177
|
$308
|
$690
|
•
|
Low Interest – Because
high-quality debt 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 the yield on
funds that invest in longer-term or lower-quality securities.
|
•
|
California Economic Risk
– The fund will be sensitive to events that affect California’s
economy. Significant political or economic developments in California will
likely impact virtually all municipal securities issued in the state.
Because the fund invests primarily in California municipal securities, it
may have a higher level of risk than funds that invest in a larger
universe of securities.
|
•
|
Municipal Risk – Because
the fund invests primarily in municipal securities, it will be sensitive
to events that affect municipal markets, including legislative or
political changes and the financial condition of the issuers of municipal
securities. By investing primarily in municipal securities, the fund may
have a higher level of risk than funds that invest in a larger universe of
securities.
|
•
|
Interest Rate, Credit and
Liquidity Risks – All investments carry risks to some degree.
However, the fund's investment parameters are designed to reduce the
effects of changes in interest rates, to minimize credit risks and to
reduce the effect on the fund of a default of any one issuer. For more
information regarding interest rate, credit and liquidity risk, see Objectives, Strategies and
Risks in this prospectus.
|
•
|
Principal Loss – 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 it.
|
|
Highest
Performance Quarter
(2Q
2000): 0.89%
Lowest
Performance Quarter
(3Q
2003): 0.10%
As
of ___________, the most
recent
calendar
quarter end,
the
fund’s Investor
Class
year-to-date
return
was _____%
|
For
the calendar year ended December 31, 2008
|
1
year
|
5
years
|
10
years
|
Inception
Date
|
Investor
Class
|
1.92%
|
2.15%
|
2.06%
|
11/09/1983
|
|
u
|
Debt
securities
include fixed-income investments such as notes, bonds, commercial paper
and U.S. Treasury securities. Very short-term debt securities (those with
maturities shorter than 397 days) are called money market
instruments.
|
|
u
|
Municipalities include states, cities,
counties, incorporated townships, the District of Columbia and U.S.
territories and possessions. They can issue private activity bonds and
public purpose bonds.
|
•
|
determining
which debt securities help a fund meet its maturity
requirements
|
•
|
identifying
debt securities that satisfy a fund’s credit quality
standards
|
•
|
evaluating
current economic conditions and assessing the risk of
inflation
|
•
|
evaluating
special features of the debt securities that may make them more or less
attractive
|
Amount
of
Security
Owned
|
Percent
of
Portfolio
|
Remaining
Maturity
|
Weighted
Maturity
|
|
Debt
Security A
|
$100,000
|
25%
|
60
days
|
15
days
|
Debt
Security B
|
$300,000
|
75%
|
45
days
|
34
days
|
Weighted
Average Maturity
|
49
days
|
Remaining
Maturity
|
Current
Price
|
Price
After 1% Increase
|
Change
in Price
|
1
year
|
$100.00
|
$99.06
|
-0.94%
|
3
years
|
$100.00
|
$97.38
|
-2.62%
|
10
years
|
$100.00
|
$93.20
|
-6.80%
|
30
years
|
$100.00
|
$88.69
|
-11.31%
|
Management
Fees Paid
by
the Fund to the Advisor
as
a Percentage of Average
Net
Assets for the Fiscal
Year
Ended August 31, 2009
|
Investor
Class
|
California
Tax-Free Money Market
|
0.43%
|
|
u
|
Personal
accounts include
individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts,
Coverdell Education Savings Accounts, IRAs (including traditional, Roth,
Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement
accounts. If you have only business, business retirement,
employer-sponsored or American Century Investments brokerage accounts, you
are currently not subject to this fee, but you may be subject to other
fees.
|
•
|
American
Century Investments’ bank information: Commerce Bank N.A., Routing No.
101000019, Account No. 2804918
|
•
|
Your
American Century Investments account number and fund name
|
•
|
Your
name
|
•
|
The
contribution year (for IRAs only)
|
•
|
Dollar
amount
|
•
|
4500
Main Street, Kansas City, MO — 8 a.m. to 5 p.m., Monday –
Friday
|
•
|
4917
Town Center Drive, Leawood, KS — 8 a.m. to 5 p.m., Monday – Friday, 8 a.m.
to noon, Saturday
|
•
|
1665
Charleston Road, Mountain View, CA — 8 a.m. to 5 p.m., Monday –
Friday
|
•
|
minimum
investment requirements
|
•
|
exchange
policies
|
•
|
fund
choices
|
•
|
cutoff
time for investments
|
•
|
trading
restrictions
|
|
u
|
Financial
intermediaries include banks, broker-dealers,
insurance companies and financial
professionals.
|
Broker-dealer
sponsored wrap program accounts and/or fee-based accounts
|
No
minimum
|
Coverdell
Education Savings Account (CESA)
|
$2,000(1)
|
1
|
The
minimum initial investment for financial intermediaries is $250. Financial
intermediaries may have different minimums for their
clients.
|
|
u
|
A fund’s net
asset value, or
NAV, is the price of the fund’s
shares.
|
•
|
You
have chosen to conduct business in writing only and would like to redeem
over $100,000.
|
•
|
Your
redemption or distribution check or automatic redemption is made payable
to someone other than the account owners.
|
•
|
Your
redemption proceeds or distribution amount is sent by EFT (ACH or wire) to
a destination other than your personal bank account.
|
•
|
You
are transferring ownership of an account over $100,000.
|
•
|
You
change your address and request a redemption over $100,000 within 15
days.
|
•
|
You
change your bank information and request a redemption within 15
days.
|
|
u
|
Capital
gains are
increases in the values of capital assets, such as stock, from the time
the assets are purchased.
|
•
|
notify
us of your purchase prior to 11 a.m. Central time AND
|
•
|
pay
for your purchase by bank wire transfer prior to 3 p.m. Central time on
the same day.
|
•
|
Market
Discount Purchases. The fund may buy a tax-exempt security for a
price less than the principal amount of the bond. If the price of the bond
increases over time, a portion of the gain may be treated as ordinary
income and taxable as ordinary income if it is distributed to
shareholders.
|
•
|
Capital
Gains. When the fund sells a security, even a tax-exempt municipal
security, it can generate a capital gain or loss, which you must report on
your tax return.
|
•
|
Temporary
Investments. Some temporary investments, such as securities loans
and repurchase agreements, can generate taxable
income.
|
|
u
|
Qualified
dividend income is a dividend received by a
fund from the stock of a domestic or qualifying foreign corporation,
provided that the fund has held the stock for a required holding
period.
|
Type
of Distribution
|
Tax
Rate for 10%
and
15% Brackets
|
Tax
Rate for
All
Other Brackets
|
Short-term
capital gains
|
Ordinary
Income
|
Ordinary
Income
|
Long-term
capital gains (> 1 year) and Qualified Dividend Income
|
5%
|
15%
|
•
|
share
price at the beginning of the period
|
•
|
investment
income and capital gains or losses
|
•
|
distributions
of income and capital gains paid to investors
|
•
|
share
price at the end of the period
|
•
|
Total
Return – the overall percentage of return of the fund, assuming the
reinvestment of all distributions
|
•
|
Expense
Ratio – the operating expenses of the fund as a percentage of
average net assets
|
•
|
Net
Income Ratio – the net investment income of the fund as a
percentage of average net assets
|
•
|
Portfolio
Turnover – the percentage of the fund’s investment portfolio that
is replaced during the period
|
Investor
Class
|
In
person
|
SEC
Public Reference Room
Washington,
D.C.
Call
202-551-8090 for location and hours.
|
On
the Internet
|
•
EDGAR database at sec.gov
•
By email request at publicinfo@sec.gov
|
By
mail
|
SEC
Public Reference Section
Washington,
D.C. 20549-1520
|
Fund
Reference
|
Fund
Code
|
Newspaper
Listing
|
Investor
Class
|
930
|
AmC
CATF
|
American
Century Investments
americancentury.com
|
|
Self-Directed
Retail Investors
P.O.
Box 419200
Kansas
City, Missouri 64141-6200
1-800-345-2021
or 816-531-5575
|
Banks
and Trust Companies, Broker-Dealers,
Financial
Professionals, Insurance Companies
P.O.
Box 419786
Kansas
City, Missouri 64141-6786
1-800-345-6488
|
January
1, 2010
|
American
Century Investments
Prospectus
|
California
Tax-Free Bond Fund
Investor
Class (BCITX)
|
Fund
Summary
|
2
|
Investment
Objective
|
2
|
Fees
and Expenses
|
2
|
Principal
Investments, Principal Risks and Performance
|
3
|
Portfolio
Management
|
4
|
Purchase and
Sale of Fund Shares
|
4
|
Tax
Information
|
5
|
Payments to
Broker-Dealers and Other Financial Intermediaries
|
5
|
Objectives,
Strategies and Risks
|
6
|
Basics
of Fixed-Income Investing
|
8
|
Management
|
10
|
Investing
Directly with American Century Investments
|
12
|
Investing
Through a Financial Intermediary
|
14
|
Additional
Policies Affecting Your Investment
|
16
|
Share
Price and Distributions
|
19
|
Taxes
|
20
|
Financial
Highlights
|
22
|
Shareholder Fees (fees
paid directly from your investment)
|
|
Investor
|
|
Maximum
Account Maintenance Fee
|
$25(1)
|
Annual Fund Operating
Expenses (expenses that you pay each year as a percentage of the
value of your investment)
|
|
Investor
|
|
Management
Fee
|
0.48%
|
Distribution
and Service (12b-1) Fees
|
None
|
Other
Expenses
|
0.01%
|
Total
Annual Fund Operating Expenses
|
0.49%
|
1
year
|
3
years
|
5
years
|
10
years
|
|
Investor
Class
|
$50
|
$157
|
$275
|
$617
|
•
|
Interest Rate Risk –
Investments in debt securities are also sensitive to interest rate
changes. Generally, the value of debt securities and the funds that hold
them decline as interest rates rise. The fund’s interest rate risk is
moderate under normal market conditions, but it may fluctuate as the
portfolio managers reposition the fund in response to changing market
conditions.
|
•
|
Credit Risk – Debt
securities, even investment-grade debt securities, are subject to credit
risk. Credit risk is the risk that the inability or perceived inability of
the issuer to make interest and principal payments will cause the value of
the securities to decrease. As a result, the fund’s share price could also
decrease. Changes in the credit rating of a debt security held by the fund
could have a similar effect.
|
•
|
California Economic Risk
– The fund will be sensitive to events that affect California’s
economy. Significant political or economic developments in California will
likely impact virtually all municipal securities issued in the state.
Because the fund invests primarily in California municipal securities, it
may have a higher level of risk than funds that invest in a larger
universe of securities.
|
•
|
Municipal Securities
Risk – The fund invests primarily in municipal securities, it will
be sensitive to events that affect municipal markets, including
legislative or political changes and the financial condition of the
issuers of municipal securities. By investing primarily in municipal
securities, the fund may have a higher level of risk than funds that
invest in a larger universe of securities.
|
•
|
Loss of Tax-Exemptions
Risk – There is no guarantee that all of the fund’s income will be
exempt from federal or state income taxes. Income from municipal bonds
held by the fund could be declared taxable because of unfavorable changes
in tax laws, adverse interpretations by the Internal Revenue Service or
state tax authorities, or noncompliant conduct of a bond
issuer.
|
•
|
Liquidity Risk – The
fund may also be subject to liquidity risk. During periods of market
turbulence or unusually low trading activity, in order to meet redemptions
it may be necessary for the fund to sell securities at prices that could
have an adverse effect on the fund’s share price.
|
•
|
Principal Loss – At any
given time your shares may be worth less than the price you paid for them.
In other words, it is possible to lose money by investing in the
fund.
|
|
Highest
Performance Quarter
(3Q 2002):
4.99%
Lowest
Performance Quarter
(2Q 2004):
-2.17%
As
of September 30, 2009, the most
recent
calendar quarter end, the
fund’s
Investor Class year-to-date
return
was _____%
|
For
the calendar year ended December 31, 2008
|
1
year
|
5
years
|
10
years
|
Inception
Date
|
Investor Class Return
Before Taxes
|
-0.58%
|
2.21%
|
3.60%
|
11/09/1983
|
Return
After Taxes on Distributions
|
-0.58%
|
2.21%
|
3.56%
|
11/09/1983
|
Return
After Taxes on Distributions and Sale of Fund Shares
|
1.02%
|
2.48%
|
3.67%
|
11/09/1983
|
Barclays
Capital 5-Year General Obligation Index
(reflects
no deduction for fees, expenses and taxes)
|
5.78%
|
3.65%
|
4.55%
|
--
|
|
u
|
Debt
securities
include fixed-income investments such as notes, bonds, commercial paper
and U.S. Treasury
securities.
|
|
u
|
An investment-grade
debt security is
one that has been rated by an independent rating agency in the top four
credit quality categories or determined by the advisor to be of comparable
credit quality. The details of the fund’s credit quality standards are
described in the statement of additional
information.
|
|
u
|
Municipalities include states, cities,
counties, incorporated townships, the District of Columbia and U.S.
territories and possessions. They can issue private activity bonds and
public purpose bonds.
|
|
u
|
Weighted
average maturity is described in more detail
under Basics of Fixed-Income Investing.
|
•
|
determining
which debt securities help a fund meet its maturity
requirements
|
•
|
identifying
debt securities that satisfy a fund’s credit quality
standards
|
•
|
evaluating
current economic conditions and assessing the risk of
inflation
|
•
|
evaluating
special features of the debt securities that may make them more or less
attractive
|
Amount
of
Security
Owned
|
Percent
of
Portfolio
|
Remaining
Maturity
|
Weighted
Maturity
|
|
Debt
Security A
|
$100,000
|
25%
|
4
years
|
1
year
|
Debt
Security B
|
$300,000
|
75%
|
12
years
|
9
years
|
Weighted
Average Maturity
|
10
years
|
Remaining
Maturity
|
Current
Price
|
Price
After 1% Increase
|
Change
in Price
|
1
year
|
$100.00
|
$99.06
|
-0.94%
|
3
years
|
$100.00
|
$97.38
|
-2.62%
|
10
years
|
$100.00
|
$93.20
|
-6.80%
|
30
years
|
$100.00
|
$88.69
|
-11.31%
|
Management
Fees Paid
by
the Fund to the Advisor
as
a Percentage of Average
Net
Assets for the Fiscal
Year
Ended August 31, 2009
|
Investor
Class
|
California
Tax-Free Bond
|
0.48%
|
|
u
|
Personal
accounts include
individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts,
Coverdell Education Savings Accounts, IRAs (including traditional, Roth,
Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement
accounts. If you have only business, business retirement,
employer-sponsored or American Century Investments brokerage accounts, you
are currently not subject to this fee, but you may be subject to other
fees.
|
•
|
American
Century Investments’ bank information: Commerce Bank N.A., Routing No.
101000019, Account No. 2804918
|
•
|
Your
American Century Investments account number and fund name
|
•
|
Your
name
|
•
|
The
contribution year (for IRAs only)
|
•
|
Dollar
amount
|
•
|
4500
Main Street, Kansas City, MO — 8 a.m. to 5 p.m., Monday –
Friday
|
•
|
4917
Town Center Drive, Leawood, KS — 8 a.m. to 5 p.m., Monday – Friday, 8 a.m.
to noon, Saturday
|
•
|
1665
Charleston Road, Mountain View, CA — 8 a.m. to 5 p.m., Monday –
Friday
|
•
|
minimum
investment requirements
|
•
|
exchange
policies
|
•
|
fund
choices
|
•
|
cutoff
time for investments
|
•
|
trading
restrictions
|
|
u
|
Financial
intermediaries include banks, broker-dealers,
insurance companies and financial
professionals.
|
Broker-dealer
sponsored wrap program accounts and/or fee-based accounts
|
No
minimum
|
Coverdell
Education Savings Account (CESA)
|
$5,000(1)(2)
|
|
u
|
A fund’s net
asset value, or
NAV, is the price of the fund’s
shares.
|
•
|
You
have chosen to conduct business in writing only and would like to redeem
over $100,000.
|
•
|
Your
redemption or distribution check or automatic redemption is made payable
to someone other than the account owners.
|
•
|
Your
redemption proceeds or distribution amount is sent by EFT (ACH or wire) to
a destination other than your personal bank account.
|
•
|
You
are transferring ownership of an account over $100,000.
|
•
|
You
change your address and request a redemption over $100,000 within 15
days.
|
•
|
You
change your bank information and request a redemption within 15
days.
|
•
|
within
seven days of the purchase, or
|
•
|
within
30 days of the purchase, if it happens more than once per
year.
|
|
u
|
Capital
gains are
increases in the values of capital assets, such as stock, from the time
the assets are purchased.
|
•
|
Market
Discount Purchases. The fund may buy a tax-exempt security for a
price less than the principal amount of the bond. If the price of the bond
increases over time, a portion of the gain may be treated as ordinary
income and taxable as ordinary income if it is distributed to
shareholders.
|
•
|
Capital
Gains. When the fund sells a security, even a tax-exempt municipal
security, it can generate a capital gain or loss, which you must report on
your tax return.
|
•
|
Temporary
Investments. Some temporary investments, such as securities loans
and repurchase agreements, can generate taxable
income.
|
|
u
|
Qualified
dividend income is a dividend received by a
fund from the stock of a domestic or qualifying foreign corporation,
provided that the fund has held the stock for a required holding
period.
|
Type
of Distribution
|
Tax
Rate for 10%
and
15% Brackets
|
Tax
Rate for
All
Other Brackets
|
Short-term
capital gains
|
Ordinary
Income
|
Ordinary
Income
|
Long-term
capital gains (> 1 year) and Qualified Dividend Income
|
5%
|
15%
|
•
|
share
price at the beginning of the period
|
•
|
investment
income and capital gains or losses
|
•
|
distributions
of income and capital gains paid to investors
|
•
|
share
price at the end of the period
|
•
|
Total
Return – the overall percentage of return of the fund, assuming the
reinvestment of all distributions
|
•
|
Expense
Ratio – the operating expenses of the fund as a percentage of
average net assets
|
•
|
Net
Income Ratio – the net investment income of the fund as a
percentage of average net assets
|
•
|
Portfolio
Turnover – the percentage of the fund’s investment portfolio that
is replaced during the period
|
Investor
Class
|
In
person
|
SEC
Public Reference Room
Washington,
D.C.
Call
202-551-8090 for location and hours.
|
On
the Internet
|
•
EDGAR database at sec.gov
•
By email request at publicinfo@sec.gov
|
By
mail
|
SEC
Public Reference Section
Washington,
D.C. 20549-1520
|
Fund
Reference
|
Fund
Code
|
Newspaper
Listing
|
Investor
Class
|
931
|
CaIntTF
|
American
Century Investments
americancentury.com
|
|
Self-Directed
Retail Investors
P.O.
Box 419200
Kansas
City, Missouri 64141-6200
1-800-345-2021
or 816-531-5575
|
Banks
and Trust Companies, Broker-Dealers,
Financial
Professionals, Insurance Companies
P.O.
Box 419786
Kansas
City, Missouri 64141-6786
1-800-345-6488
|
January
1, 2010
|
American
Century Investments
Prospectus
|
California
Long-Term Tax-Free Fund
Investor
Class (BCLTX)
A
Class (ALTAX)
B
Class (ALQBX) (closed)
C
Class (ALTCX)
|
Fund
Summary
|
2
|
Investment
Objective
|
2
|
Fees
and Expenses
|
2
|
Principal
Investments, Principal Risks and Performance
|
3
|
Portfolio
Management
|
5
|
Purchase and
Sale of Fund Shares
|
5
|
Tax
Information
|
5
|
Payments to
Broker-Dealers and Other Financial Intermediaries
|
5
|
Objectives,
Strategies and Risks
|
6
|
Basics
of Fixed-Income Investing
|
8
|
Management
|
10
|
Investing
Directly with American Century Investments
|
12
|
Investing
Through a Financial Intermediary
|
14
|
Additional
Policies Affecting Your Investment
|
19
|
Share
Price and Distributions
|
22
|
Taxes
|
23
|
Multiple
Class Information
|
25
|
Financial
Highlights
|
26
|
Shareholder
Fees (fees paid directly from your investment)
|
||||
Investor
|
A
|
B
|
C
|
|
Maximum
Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)
|
None
|
4.50%
|
None
|
None
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the original offering
price for B Class shares or the lower of the original offering price or
redemption proceeds for A and C Class shares)
|
None
|
None(1)
|
5.00%
|
1.00%
|
Maximum
Account Maintenance Fee
|
$25(2)
|
None
|
None
|
None
|
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
||||
Investor
|
A
|
B
|
C
|
|
Management
Fee
|
0.48%
|
0.48%
|
0.48%
|
0.48%
|
Distribution
and Service (12b-1) Fees
|
None
|
0.25%
|
1.00%
|
1.00%
|
Other
Expenses
|
0.01%
|
0.01%
|
0.01%
|
0.01%
|
Total
Annual Fund Operating Expenses
|
0.49%
|
0.74%
|
1.49%
|
1.49%
|
1
year
|
3
years
|
5
years
|
10
years
|
|
Investor
Class
|
$50
|
$157
|
$275
|
$617
|
A
Class
|
$522
|
$676
|
$843
|
$1,327
|
B
Class
|
$552
|
$772
|
$914
|
$1,576
|
B
Class (if shares not redeemed)
|
$152
|
$472
|
$814
|
$1,576
|
C
Class
|
$152
|
$472
|
$814
|
$1,778
|
•
|
California Economic Risk
– The fund will be sensitive to events that affect California’s economy.
Significant political or economic developments in California will likely
impact virtually all municipal securities issued in the state. Because the
fund invests primarily in California municipal securities, it may have a
higher level of risk than funds that invest in a larger universe of
securities.
|
•
|
Municipal
Securities Risk – The fund invests primarily in
municipal securities and will be sensitive to events that affect municipal
markets, including legislative or political changes and the financial
condition of the issuers of municipal securities. By investing primarily
in municipal securities, the fund may have a higher level of risk than
funds that invest in a larger universe of securities.
|
•
|
Interest Rate
Risk – Investments in debt securities
are also sensitive to interest rate changes. Generally, the value of debt
securities and the funds that hold them decline as interest rates rise.
Because this fund has a longer weighted average maturity, it is likely to
be more sensitive to interest rate changes.
|
•
|
Loss of Tax Exemptions
Risk – There is no guarantee that all of the fund’s income will be
exempt from federal or state income taxes. Income from municipal bonds
held by the fund could be declared taxable because of unfavorable changes
in tax laws, adverse interpretations by the Internal Revenue Service or
state tax authorities, or noncompliant conduct of a bond
issuer.
|
•
|
Liquidity
Risk – The fund may also be subject to
liquidity risk. During periods of market turbulence or unusually low
trading activity, in order to meet redemptions it may be necessary for the
fund to sell securities at prices that could have an adverse effect on the
fund’s share price.
|
•
|
Credit
Risk – Debt securities, even
investment-grade debt securities, are subject to credit risk. Credit risk
is the risk that the inability or perceived inability of the issuer to
make interest and principal payments will cause the value of the
securities to decrease. As a result, the fund’s share price could also
decrease. Changes in the credit rating of a debt security held by the fund
could have a similar effect.
|
•
|
Principal Loss – At any
given time your shares may be worth less than the price you paid for them.
In other words, it is possible to lose money by investing in the
fund.
|
|
Highest
Performance Quarter
(3Q 2002):
5.67%
Lowest
Performance Quarter
(3Q 2008):
-3.42%
As
of September 30, 2009, the
most
recent calendar quarter end,
the
fund’s Investor Class
year-to-date
return was _____%
|
For
the calendar year ended December 31, 2008
|
1
year
|
5
years
|
10
years
|
Since
Inception
|
Inception
Date
|
Investor Class Return
Before Taxes
|
-6.03%
|
1.49%
|
3.34%
|
6.38%
|
11/09/1983
|
Return
After Taxes on Distributions
|
-6.03%
|
1.42%
|
3.30%
|
--
|
11/09/1983
|
Return
After Taxes on Distributions
and
Sale of Fund Shares
|
-2.29%
|
1.97%
|
3.55%
|
--
|
11/09/1983
|
A Class Return Before
Taxes
|
-10.48%
|
--
|
--
|
-7.87%
|
9/28/2007
|
B Class Return Before
Taxes
|
-10.97%
|
--
|
--
|
-8.40%
|
9/28/2007
|
C Class Return Before
Taxes
|
-6.97%
|
--
|
--
|
-5.17%
|
9/28/2007
|
Barclays
Capital Long-Term Municipal Bond Index
(reflects
no deduction for fees, expenses and taxes)
|
-2.47%
|
2.71%
|
4.26%
|
7.58%(1)
|
--
|
|
u
|
Debt
securities
include fixed-income investments such as notes, bonds, commercial paper
and U.S. Treasury
securities.
|
|
u
|
An investment-grade debt security is one that has
been rated by an independent rating agency in the top four credit quality
categories or determined by the advisor to be of comparable credit
quality. The details of the fund’s credit quality standards are described
in the statement of additional
information.
|
|
u
|
Municipalities include states, cities,
counties, incorporated townships, the District of Columbia and U.S.
territories and possessions. They can issue private activity bonds and
public purpose bonds.
|
|
u
|
Weighted
average maturity
is described in more detail under Basics of Fixed-Income
Investing.
|
•
|
determining
which debt securities help a fund meet its maturity
requirements
|
•
|
identifying
debt securities that satisfy a fund’s credit quality
standards
|
•
|
evaluating
current economic conditions and assessing the risk of
inflation
|
•
|
evaluating
special features of the debt securities that may make them more or less
attractive
|
Amount
of
Security
Owned
|
Percent
of
Portfolio
|
Remaining
Maturity
|
Weighted
Maturity
|
|
Debt
Security A
|
$100,000
|
25%
|
4
years
|
1
year
|
Debt
Security B
|
$300,000
|
75%
|
12
years
|
9
years
|
Weighted
Average Maturity
|
10
years
|
Remaining
Maturity
|
Current
Price
|
Price
After 1% Increase
|
Change
in Price
|
1
year
|
$100.00
|
$99.06
|
-0.94%
|
3
years
|
$100.00
|
$97.38
|
-2.62%
|
10
years
|
$100.00
|
$93.20
|
-6.80%
|
30
years
|
$100.00
|
$88.69
|
-11.31%
|
Management
Fees Paid
by
the Fund to the
Advisor
as a Percentage
of
Average Net Assets
for
the Fiscal Year
Ended
August 31, 2009
|
Investor
Class
|
A
Class
|
B
Class
|
C
Class
|
California
Long-Term Tax-Free
|
0.48%
|
0.48%
|
0.48%
|
0.48%
|
|
u
|
Personal
accounts include
individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts,
Coverdell Education Savings Accounts, IRAs (including traditional, Roth,
Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement
accounts. If you have only business, business retirement,
employer-sponsored or American Century Investments brokerage accounts, you
are currently not subject to this fee, but you may be subject to other
fees.
|
•
|
American
Century Investments’ bank information: Commerce Bank N.A., Routing No.
101000019, Account No. 2804918
|
•
|
Your
American Century Investments account number and fund name
|
•
|
Your
name
|
•
|
Dollar
amount
|
•
|
4500
Main Street, Kansas City, MO — 8 a.m. to 5 p.m., Monday –
Friday
|
•
|
4917
Town Center Drive, Leawood, KS — 8 a.m. to 5 p.m., Monday – Friday, 8 a.m.
to noon, Saturday
|
•
|
1665
Charleston Road, Mountain View, CA — 8 a.m. to 5 p.m., Monday –
Friday
|
|
u
|
Financial
intermediaries
include banks, broker-dealers, insurance companies and financial
professionals.
|
A
Class
|
B
Class
|
Initial
sales charge(1)
|
No
initial sales charge
|
Generally
no contingent deferred sales charge(2)
|
Contingent
deferred sales charge on redemptions within six years
|
12b-1
fee of 0.25%
|
12b-1
fee of 1.00%
|
No
conversion feature
|
Convert
to A Class shares eight years after purchase
|
Generally
more appropriate for long-term investors
|
Not
available for new purchases
|
C
Class
|
No
initial sales charge
|
Contingent
deferred sales charge on redemptions within 12 months
|
12b-1
fee of 1.00%
|
No
conversion feature
|
Purchases
generally limited to investors whose aggregate investments in American
Century Investments funds are less than $1,000,000;
generally more appropriate for short-term
investors
|
Purchase
Amount
|
Sales
Charge
as
a % of
Offering
Price
|
Sales
Charge
as
a % of Net
Amount
Invested
|
Amount
Paid to
Financial
Professional
as
a % of Offering Price
|
Less
than $100,000
|
4.50%
|
4.71%
|
4.00%
|
$100,000
- $249,999
|
3.50%
|
3.63%
|
3.00%
|
$250,000
- $499,999
|
2.50%
|
2.56%
|
2.00%
|
$500,000
- $999,999
|
2.00%
|
2.04%
|
1.75%
|
$1,000,000
- $3,999,999
|
0.00%
|
0.00%
|
1.00%
|
$4,000,000
- $9,999,999
|
0.00%
|
0.00%
|
0.50%
|
$10,000,000
or more
|
0.00%
|
0.00%
|
0.25%
|
•
|
Certain
trust accounts
|
•
|
Solely
controlled business accounts
|
•
|
Single-participant
retirement plans
|
•
|
Endowments
or foundations established and controlled by you or an immediate family
member
|
•
|
Purchases
by registered representatives and other employees of certain financial
intermediaries (and their immediate family members) having selling
agreements with the advisor or distributor
|
•
|
Broker-dealer
sponsored wrap program accounts and/or fee-based accounts maintained for
clients of certain financial intermediaries who have entered into selling
agreements with American Century
Investments
|
•
|
Present
or former officers, directors and employees (and their families) of
American Century Investments
|
•
|
Certain
other investors as deemed appropriate by American Century
Investments
|
Redemption
During
|
CDSC
as a % of Original Purchase Price
|
1st
year
|
5.00%
|
2nd
year
|
4.00%
|
3rd
year
|
3.00%
|
4th
year
|
3.00%
|
5th
year
|
2.00%
|
6th
year
|
1.00%
|
After
6th year
|
None
|
•
|
redemptions
through systematic withdrawal plans not exceeding annually:
|
¡ 12%
of the original purchase cost for B Class shares
|
|
¡ 12%
of the lesser of the original purchase cost or current market value for A
and C Class shares
|
|
•
|
distributions
from IRAs due to attainment of age 591⁄2 for
A and C Class shares
|
•
|
required
minimum distributions from retirement accounts upon reaching age 701⁄2
|
•
|
tax-free
returns of excess contributions to IRAs
|
•
|
redemptions
due to death or post-purchase disability
|
•
|
exchanges,
unless the shares acquired by exchange are redeemed within the original
CDSC period
|
•
|
if
no broker was compensated for the
sale
|
•
|
The
exchange is for a minimum of $100
|
•
|
For
an exchange that opens a new account, the amount of the exchange must meet
or exceed the minimum account size requirement for the fund receiving the
exchange
|
•
|
minimum
investment requirements
|
•
|
exchange
policies
|
•
|
fund
choices
|
•
|
cutoff
time for investments
|
•
|
trading
restrictions
|
Broker-dealer
sponsored wrap program accounts and/or fee-based accounts
|
No
minimum
|
Coverdell
Education Savings Account (CESA)
|
$5,000(1)(2)
|
|
u
|
A fund’s net
asset value, or
NAV, is the price of the fund’s
shares.
|
•
|
You
have chosen to conduct business in writing only and would like to redeem
over $100,000.
|
•
|
Your
redemption or distribution check or automatic redemption is made payable
to someone other than the account owners.
|
•
|
Your
redemption proceeds or distribution amount is sent by EFT (ACH or wire) to
a destination other than your personal bank account.
|
•
|
You
are transferring ownership of an account over $100,000.
|
•
|
You
change your address and request a redemption over $100,000 within 15
days.
|
•
|
You
change your bank information and request a redemption within 15
days.
|
•
|
within
seven days of the purchase, or
|
•
|
within
30 days of the purchase, if it happens more than once per
year.
|
|
u
|
Capital
gains are
increases in the values of capital assets, such as stock, from the time
the assets are purchased.
|
•
|
Market Discount
Purchases. The fund may buy a tax-exempt security for a price less
than the principal amount of the bond. If the price of the bond increases
over time, a portion of the gain may be treated as ordinary income and
taxable as ordinary income if it is distributed to
shareholders.
|
•
|
Capital Gains. When the
fund sells a security, even a tax-exempt municipal security, it can
generate a capital gain or loss, which you must report on your tax
return.
|
•
|
Temporary Investments.
Some temporary investments, such as securities loans and repurchase
agreements, can generate taxable
income.
|
|
u
|
Qualified
dividend income
is a dividend received by a fund from the stock of a domestic or
qualifying foreign corporation, provided that the fund has held the stock
for a required holding
period.
|
Type
of Distribution
|
Tax
Rate for 10%
and
15% Brackets
|
Tax
Rate for
All
Other Brackets
|
Short-term
capital gains
|
Ordinary
Income
|
Ordinary
Income
|
Long-term
capital gains (> 1 year) and Qualified Dividend Income
|
5%
|
15%
|
•
|
share
price at the beginning of the period
|
•
|
investment
income and capital gains or losses
|
•
|
distributions
of income and capital gains paid to investors
|
•
|
share
price at the end of the period
|
•
|
Total Return – the
overall percentage of return of the fund, assuming the reinvestment of all
distributions
|
•
|
Expense Ratio – the
operating expenses of the fund as a percentage of average net
assets
|
•
|
Net Income Ratio – the
net investment income of the fund as a percentage of average net
assets
|
•
|
Portfolio Turnover – the
percentage of the fund’s investment portfolio that is replaced during the
period
|
Investor
Class
|
A
Class
|
B
Class
|
C
Class
|
In
person
|
SEC
Public Reference Room, Washington, D.C.
Call
202-551-8090 for location and hours.
|
On
the Internet
|
•
EDGAR database at sec.gov
•
By email request at publicinfo@sec.gov
|
By
mail
|
SEC
Public Reference Section
Washington,
D.C. 20549-1520
|
Fund
Reference
|
Fund
Code
|
Newspaper
Listing
|
Investor
Class
|
932
|
CaLgTF
|
A
Class
|
162
|
CaLgTF
|
B
Class
|
362
|
CaLgTF
|
C
Class
|
632
|
CaLgTF
|
American
Century Investments
americancentury.com
|
|
Self-Directed
Retail Investors
P.O.
Box 419200
Kansas
City, Missouri 64141-6200
1-800-345-2021
or 816-531-5575
|
Banks
and Trust Companies, Broker-Dealers,
Financial
Professionals, Insurance Companies
P.O.
Box 419786
Kansas
City, Missouri 64141-6786
1-800-345-6488
|
January
1, 2010
|
American
Century Investments
Prospectus
|
California
High-Yield Municipal Fund
Investor
Class (BCHYX)
A
Class (CAYAX)
B
Class (CAYBX) (closed)
C
Class (CAYCX)
|
Fund
Summary
|
2
|
Investment
Objective
|
2
|
Fees
and Expenses
|
2
|
Principal
Investments, Principal Risks and Performance
|
3
|
Portfolio
Management
|
5
|
Purchase and
Sale of Fund Shares
|
5
|
Tax
Information
|
5
|
Payments to
Broker-Dealers and Other Financial Intermediaries
|
5
|
Objectives,
Strategies and Risks
|
6
|
Basics
of Fixed-Income Investing
|
8
|
Management
|
10
|
Investing
Directly with American Century Investments
|
12
|
Investing
Through a Financial Intermediary
|
14
|
Additional
Policies Affecting Your Investment
|
19
|
Share
Price and Distributions
|
22
|
Taxes
|
23
|
Multiple
Class Information
|
25
|
Financial
Highlights
|
26
|
Shareholder
Fees (fees paid directly from your investment)
|
||||
Investor
|
A
|
B
|
C
|
|
Maximum
Sales Charge (Load) Imposed on
Purchases
(as a percentage of offering price)
|
None
|
4.50%
|
None
|
None
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the original offering
price for B Class shares or the lower of the original offering price or
redemption proceeds for A and C Class shares)
|
None
|
None(1)
|
5.00%
|
1.00%
|
Maximum
Account Maintenance Fee
|
$25(2)
|
None
|
None
|
None
|
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
||||
Investor
|
A
|
B
|
C
|
|
Management
Fee
|
0.51%
|
0.51%
|
0.51%
|
0.51%
|
Distribution
and Service (12b-1) Fees
|
None
|
0.25%
|
1.00%
|
1.00%
|
Other
Expenses
|
0.01%
|
0.01%
|
0.01%
|
0.01%
|
Total
Annual Fund Operating Expenses
|
0.52%
|
0.77%
|
1.52%
|
1.52%
|
1
year
|
3
years
|
5
years
|
10
years
|
|
Investor
Class
|
$53
|
$167
|
$291
|
$653
|
A
Class
|
$525
|
$685
|
$859
|
$1,362
|
B
Class
|
$555
|
$781
|
$930
|
$1,609
|
B
Class (if shares not redeemed)
|
$155
|
$481
|
$830
|
$1,609
|
C
Class
|
$155
|
$481
|
$830
|
$1,811
|
•
|
Credit Risk – The fund’s
investments often have high credit risk, which helps the fund pursue a
higher yield than more conservatively managed 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 and other developments may be more
likely to cause an issuer of low-quality bonds to default on its
obligation to pay interest and principal due under its
securities.
|
The
fund invests a significant part of its assets in securities rated below
investment-grade or that are unrated, including bonds that are in
technical or monetary default. By definition, the issuers of many of these
securities have had and may continue to have problems making interest and
principal payments.
|
|
•
|
Nondiversification – The
fund is classified as nondiversified. A nondiversified fund may invest a
greater percentage of its assets in a smaller number of securities than a
diversified fund. This gives the managers the flexibility to hold large
positions in a small number of securities. If so, a price change in any
one of those securities may have a greater impact on the fund’s share
price than would be the case in a diversified fund.
|
•
|
Interest Rate Risk –
When interest rates change, the fund’s share value will be affected.
Generally, the value of debt securities and the funds that hold them
decline as interest rates rise. Because the fund typically invests in
intermediate-term and long-term bonds, the fund’s interest rate risk is
generally higher than for funds with shorter-weighted average maturities,
such as money market and short-term bond funds.
|
•
|
Liquidity Risk – The
fund may also be subject to liquidity risk. During periods of market
turbulence or unusually low trading activity, in order to meet
redemptions, it may be necessary for the fund to sell securities at prices
that could have an adverse effect on the fund’s share price.
|
•
|
California Economic Risk
– The fund will be sensitive to events that affect California’s
economy. Significant political or economic developments in California will
likely impact virtually all municipal securities issued in the state.
Because the fund invests primarily in California municipal securities, it
may have a higher level of risk than funds that invest in a larger
universe of securities.
|
•
|
Municipal Risk – Because
the fund invests primarily in municipal securities, it will be sensitive
to events that affect municipal markets, including legislative or
political changes and the financial condition of the issuers of municipal
securities. The fund may have a higher level of risk than funds that
invest in a larger universe of
securities.
|
•
|
Tax Risk – Some or all
of the fund’s income may be subject to the federal alternative minimum
tax. There is no guarantee that all of the fund’s income will remain
exempt from federal or state income taxes. Income from municipal bonds
held by a fund could be declared taxable because of unfavorable changes in
tax laws, adverse interpretations by the Internal Revenue Service or state
tax authorities, or noncompliant conduct of a bond issuer.
|
•
|
Principal Loss – At any
given time your shares may be worth less than the price you paid for them.
In other words, it is possible to lose money by investing in the
fund.
|
|
Highest
Performance Quarter
(3Q 2002):
5.93%
Lowest
Performance Quarter
(4Q 2008):
-9.36%
As
of September 30, 2009, the
most
recent calendar quarter end,
the
fund’s Investor Class
year-to-date
return was _____%
|
For
the calendar year ended December 31, 2008
|
1
year
|
5
years
|
10
years
|
Since
Inception
|
Inception
Date
|
Investor Class Return
Before Taxes
|
-13.52%
|
0.77%
|
3.21%
|
5.19%
|
12/30/1986
|
Return
After Taxes on Distributions
|
-13.52%
|
0.77%
|
3.21%
|
--
|
12/30/1986
|
Return
After Taxes on Distributions
and
Sale of Fund Shares
|
-7.06%
|
1.49%
|
3.56%
|
--
|
12/30/1986
|
A Class Return Before
Taxes
|
-17.61%
|
-0.40%
|
--
|
0.65%
|
1/31/2003
|
B Class Return Before
Taxes
|
-18.39%
|
-0.43%
|
--
|
0.51%
|
1/31/2003
|
C Class Return Before
Taxes
|
-14.39%
|
-0.23%
|
--
|
0.72%
|
1/31/2003
|
Barclays Capital Long-Term
Municipal Bond Index (reflects no
deduction for fees, expenses and taxes)
|
-2.47%
|
2.71%
|
4.26%
|
6.24%(1)
|
--
|
|
u
|
Municipal
securities are a
debt obligation issued by or on behalf of a state, its political
subdivisions, agencies or instrumentalities, the District of Columbia or a
U.S. territory or
possession.
|
|
u
|
Debt
securities
include fixed-income investments such as notes, bonds, commercial paper
and U.S. Treasury
securities.
|
|
u
|
Long-term
debt securities
are those with maturities longer than 10 years. Intermediate-term
debt securities are those with
maturities between three and 10
years.
|
•
|
determining
which debt securities help a fund meet its maturity
requirements
|
•
|
identifying
debt securities that satisfy a fund’s credit quality
standards
|
•
|
evaluating
current economic conditions and assessing the risk of
inflation
|
•
|
evaluating
special features of the debt securities that may make them more or less
attractive
|
Amount
of
Security
Owned
|
Percent
of
Portfolio
|
Remaining
Maturity
|
Weighted
Maturity
|
|
Debt
Security A
|
$100,000
|
25%
|
4
years
|
1
year
|
Debt
Security B
|
$300,000
|
75%
|
12
years
|
9
years
|
Weighted
Average Maturity
|
10
years
|
Remaining
Maturity
|
Current
Price
|
Price
After 1% Increase
|
Change
in Price
|
1
year
|
$100.00
|
$99.06
|
-0.94%
|
3
years
|
$100.00
|
$97.38
|
-2.62%
|
10
years
|
$100.00
|
$93.20
|
-6.80%
|
30
years
|
$100.00
|
$88.69
|
-11.31%
|
Management
Fees Paid
by
the Fund to the
Advisor
as a Percentage
of
Average Net Assets
for
the Fiscal Year
Ended
August 31, 2009
|
Investor
Class
|
A
Class
|
B
Class
|
C
Class
|
California
High-Yield Municipal
|
0.51%
|
0.51%
|
0.51%
|
0.51%
|
|
u
|
Personal
accounts include
individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts,
Coverdell Education Savings Accounts, IRAs (including traditional, Roth,
Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement
accounts. If you have only business, business retirement,
employer-sponsored or American Century Investments brokerage accounts, you
are currently not subject to this fee, but you may be subject to other
fees.
|
•
|
American
Century Investments’ bank information: Commerce Bank N.A., Routing No.
101000019, Account No. 2804918
|
•
|
Your
American Century Investments account number and fund name
|
•
|
Your
name
|
•
|
Dollar
amount
|
•
|
4500
Main Street, Kansas City, MO — 8 a.m. to 5 p.m., Monday –
Friday
|
•
|
4917
Town Center Drive, Leawood, KS — 8 a.m. to 5 p.m., Monday – Friday, 8 a.m.
to noon, Saturday
|
•
|
1665
Charleston Road, Mountain View, CA — 8 a.m. to 5 p.m., Monday –
Friday
|
|
u
|
Financial
intermediaries
include banks, broker-dealers, insurance companies and financial
professionals.
|
A
Class
|
B
Class
|
Initial
sales charge(1)
|
No
initial sales charge
|
Generally
no contingent deferred sales charge(2)
|
Contingent
deferred sales charge on redemptions within six years
|
12b-1
fee of 0.25%
|
12b-1
fee of 1.00%
|
No
conversion feature
|
Convert
to A Class shares eight years after purchase
|
Generally
more appropriate for long-term investors
|
Not
available for new purchases
|
C
Class
|
No
initial sales charge
|
Contingent
deferred sales charge on redemptions within 12 months
|
12b-1
fee of 1.00%
|
No
conversion feature
|
Purchases
generally limited to investors whose aggregate investments in American
Century Investments funds are less than $1,000,000;
generally more appropriate for short-term
investors
|
Purchase
Amount
|
Sales
Charge
as
a % of
Offering
Price
|
Sales
Charge
as
a % of Net
Amount
Invested
|
Amount
Paid to
Financial
Professional
as
a % of Offering Price
|
Less
than $100,000
|
4.50%
|
4.71%
|
4.00%
|
$100,000
- $249,999
|
3.50%
|
3.63%
|
3.00%
|
$250,000
- $499,999
|
2.50%
|
2.56%
|
2.00%
|
$500,000
- $999,999
|
2.00%
|
2.04%
|
1.75%
|
$1,000,000
- $3,999,999
|
0.00%
|
0.00%
|
1.00%
|
$4,000,000
- $9,999,999
|
0.00%
|
0.00%
|
0.50%
|
$10,000,000
or more
|
0.00%
|
0.00%
|
0.25%
|
•
|
Certain
trust accounts
|
•
|
Solely
controlled business accounts
|
•
|
Single-participant
retirement plans
|
•
|
Endowments
or foundations established and controlled by you or an immediate family
member
|
•
|
Purchases
by registered representatives and other employees of certain financial
intermediaries (and their immediate family members) having selling
agreements with the advisor or distributor
|
•
|
Broker-dealer
sponsored wrap program accounts and/or fee-based accounts maintained for
clients of certain financial intermediaries who have entered into selling
agreements with American Century Investments
|
•
|
Present
or former officers, directors and employees (and their families) of
American Century Investments
|
•
|
Certain
other investors as deemed appropriate by American Century
Investments
|
Redemption
During
|
CDSC
as a % of Original Purchase Price
|
1st
year
|
5.00%
|
2nd
year
|
4.00%
|
3rd
year
|
3.00%
|
4th
year
|
3.00%
|
5th
year
|
2.00%
|
6th
year
|
1.00%
|
After
6th year
|
None
|
•
|
redemptions
through systematic withdrawal plans not exceeding annually:
|
¡ 12%
of the original purchase cost for B Class shares
|
|
¡ 12%
of the lesser of the original purchase cost or current market value for A
and C Class shares
|
|
•
|
distributions
from IRAs due to attainment of age 591⁄2 for
A and C Class shares
|
•
|
required
minimum distributions from retirement accounts upon reaching age 701⁄2
|
•
|
tax-free
returns of excess contributions to IRAs
|
•
|
redemptions
due to death or post-purchase disability
|
•
|
exchanges,
unless the shares acquired by exchange are redeemed within the original
CDSC period
|
•
|
if
no broker was compensated for the
sale
|
•
|
The
exchange is for a minimum of $100
|
•
|
For
an exchange that opens a new account, the amount of the exchange must meet
or exceed the minimum account size requirement for the fund receiving the
exchange
|
•
|
minimum
investment requirements
|
•
|
exchange
policies
|
•
|
fund
choices
|
•
|
cutoff
time for investments
|
•
|
trading
restrictions
|
Broker-dealer
sponsored wrap program accounts and/or fee-based accounts
|
No
minimum
|
Coverdell
Education Savings Account (CESA)
|
$5,000(1)(2)
|
|
u
|
A fund’s net
asset value, or
NAV, is the price of the fund’s
shares.
|
•
|
You
have chosen to conduct business in writing only and would like to redeem
over $100,000.
|
•
|
Your
redemption or distribution check or automatic redemption is made payable
to someone other than the account owners.
|
•
|
Your
redemption proceeds or distribution amount is sent by EFT (ACH or wire) to
a destination other than your personal bank account.
|
•
|
You
are transferring ownership of an account over $100,000.
|
•
|
You
change your address and request a redemption over $100,000 within 15
days.
|
•
|
You
change your bank information and request a redemption within 15
days.
|
•
|
within
seven days of the purchase, or
|
•
|
within
30 days of the purchase, if it happens more than once per
year.
|
|
u
|
Capital
gains are
increases in the values of capital assets, such as stock, from the time
the assets are purchased.
|
•
|
Market Discount
Purchases. The fund may buy a tax-exempt security for a price less
than the principal amount of the bond. If the price of the bond increases
over time, a portion of the gain may be treated as ordinary income and
taxable as ordinary income if it is distributed to
shareholders.
|
•
|
Capital Gains. When the
fund sells a security, even a tax-exempt municipal security, it can
generate a capital gain or loss, which you must report on your tax
return.
|
•
|
Temporary Investments.
Some temporary investments, such as securities loans and repurchase
agreements, can generate taxable
income.
|
|
u
|
Qualified
dividend income
is a dividend received by a fund from the stock of a domestic or
qualifying foreign corporation, provided that the fund has held the stock
for a required holding
period.
|
Type
of Distribution
|
Tax
Rate for 10%
and
15% Brackets
|
Tax
Rate for
All
Other Brackets
|
Short-term
capital gains
|
Ordinary
Income
|
Ordinary
Income
|
Long-term
capital gains (> 1 year) and Qualified Dividend Income
|
5%
|
15%
|
•
|
share
price at the beginning of the period
|
•
|
investment
income and capital gains or losses
|
•
|
distributions
of income and capital gains paid to investors
|
•
|
share
price at the end of the period
|
•
|
Total Return – the
overall percentage of return of the fund, assuming the reinvestment of all
distributions
|
•
|
Expense Ratio – the
operating expenses of the fund as a percentage of average net
assets
|
•
|
Net Income Ratio – the
net investment income of the fund as a percentage of average net
assets
|
•
|
Portfolio Turnover – the
percentage of the fund’s investment portfolio that is replaced during the
period
|
Investor
Class
|
A
Class
|
B
Class
|
C
Class
|
In
person
|
SEC
Public Reference Room, Washington, D.C.
Call
202-551-8090 for location and hours.
|
On
the Internet
|
•
EDGAR database at sec.gov
•
By email request at publicinfo@sec.gov
|
By
mail
|
SEC
Public Reference Section
Washington,
D.C. 20549-1520
|
Fund
Reference
|
Fund
Code
|
Newspaper
Listing
|
Investor
Class
|
933
|
CaHYMu
|
A
Class
|
133
|
CaHYMu
|
B
Class
|
333
|
CaHYMu
|
C
Class
|
433
|
CaHYMu
|
American
Century Investments
americancentury.com
|
|
Self-Directed
Retail Investors
P.O.
Box 419200
Kansas
City, Missouri 64141-6200
1-800-345-2021
or 816-531-5575
|
Banks
and Trust Companies, Broker-Dealers,
Financial
Professionals, Insurance Companies
P.O.
Box 419786
Kansas
City, Missouri 64141-6786
1-800-345-6488
|
American
Century Investments
Statement
of Additional Information
American
Century California Tax-Free and Municipal
Funds
|
California
High-Yield Municipal Fund
Investor
Class (BCHYX)
A
Class (CAYAX)
B
Class (CAYBX) (closed)
C
Class (CAYCX)
California
Long-Term Tax-Free Fund
Investor
Class (BCLTX)
A
Class (ALTAX)
B
Class (ALQBX) (closed)
C
Class (ALTCX)
California
Tax-Free Bond Fund
Investor
Class (BCITX)
California
Tax-Free Money Market Fund
Investor
Class (BCTXX)
|
The
Funds’ History
|
2
|
Fund
Investment Guidelines
|
2
|
California
High-Yield Municipal Fund
|
3
|
California
Long-Term Tax-Free Fund California Tax-Free Bond
Fund
|
4
|
California
Tax-Free Money Market Fund
|
4
|
Fund
Investments and Risks
|
4
|
Investment
Strategies and Risks
|
4
|
Investment
Policies
|
24
|
Temporary
Defensive Measures
|
26
|
Portfolio
Turnover
|
27
|
Management
|
27
|
The
Board of Trustees
|
30
|
Ownership of
Fund Shares
|
32
|
Code of
Ethics
|
32
|
Proxy
Voting Guidelines
|
33
|
Disclosure of
Portfolio Holdings
|
34
|
The
Funds’ Principal Shareholders
|
38
|
Service
Providers
|
40
|
Investment
Advisor
|
40
|
Portfolio
Managers
|
43
|
Transfer Agent
And Administrator
|
46
|
Sub-Administrator
|
46
|
Distributor
|
46
|
Custodian
Banks
|
47
|
Independent
Registered Public Accounting Firm
|
47
|
Brokerage
Allocation
|
47
|
Regular
Broker-Dealers
|
48
|
Information
About Fund Shares
|
49
|
Multiple Class
Structure
|
49
|
Buying
and Selling Fund Shares
|
53
|
Valuation of a
Fund’s Securities
|
53
|
Money
Market Fund
|
54
|
Non-Money
Market Funds
|
54
|
Taxes
|
55
|
Federal
Income Tax
|
55
|
Alternative
Minimum Tax
|
57
|
State
and Local Taxes
|
57
|
Financial
Statements
|
57
|
Explanation
of Fixed-Income Securities Ratings
|
58
|
Fund/Class
|
Ticker
Symbol
|
Inception
Date
|
California
High-Yield Municipal Fund
|
||
Investor
Class
|
BCHYX
|
12/30/1986
|
A
Class
|
CAYAX
|
01/31/2003
|
B
Class
|
CAYBX
|
01/31/2003
|
C
Class
|
CAYCX
|
01/31/2003
|
California
Long-Term Tax-Free Fund
|
||
Investor
Class
|
BCLTX
|
11/09/1983
|
A
Class
|
ALTAX
|
09/28/2007
|
B
Class
|
ALQBX
|
09/28/2007
|
C
Class
|
ALTCX
|
09/28/2007
|
California
Tax-Free Bond Fund
|
||
Investor
Class
|
BCITX
|
11/09/1983
|
California
Tax-Free Money Market Fund
|
||
Investor
Class
|
BCTXX
|
11/09/1983
|
(1)
|
municipal
obligations issued in other states and
|
(2)
|
U.S.
government obligations.
|
•
|
municipal
bonds rated, when acquired, within the four highest categories designated
by a rating agency
|
•
|
municipal
notes (including variable-rate demand obligations) and tax-exempt
commercial paper that is rated, when acquired, within the two highest
categories designated by a rating agency
|
•
|
unrated
obligations judged by the advisor to be of a quality comparable to the
securities listed above.
|
•
|
buys
only U.S. dollar-denominated obligations with remaining maturities of 397
days or less (and variable- and floating-rate obligations with demand
features that effectively shorten their maturities to 397 days or
less),
|
•
|
maintains
a dollar-weighted average maturity of 90 days or less, and
|
•
|
restricts
its investments to high-quality obligations determined by the advisor,
pursuant to procedures established by the Board of Trustees, to present
minimal credit risks.
|
•
|
a
U.S. government obligation, or
|
•
|
rated
(or of an issuer rated with respect to a class of comparable short-term
obligations) in one of the two highest rating categories for short-term
obligations by at least two nationally recognized statistical rating
agencies (or one if only one has rated the obligation), or
|
•
|
an
unrated obligation judged by the advisor, pursuant to guidelines
established by the Board of Trustees, to be of a quality comparable to the
securities listed above.
|
1.
|
Addressing
the Deficit- The $60 billion in budget solutions adopted for the combined
fiscal years 2008-09 and 2009-10 ($36 billion in solutions are
wide-ranging and touch all three of the state’s major revenues sources.
Spending cuts are implemented in virtually every state program that
receives General Fund support. The budget solutions include spending
reductions of $31 billion (52% of total solutions). The spending
reductions consist primarily of reductions in educations spending under
Proposition 98, ($14.9 billion reduction, higher education ($3.3 billion),
employee compensation ($2 billion) and reductions in other spending due to
redevelopment agency revenues and fund balances that would otherwise be
payable from The General Fund ($1.7 billion reduction). The budget
solutions also include an estimated receipt of $8 billion (13% of total
solutions) of federal stimulus funds which will be used to offset general
fund expenditures. Additional solutions include $12.5 billion of tax
increases (21% of total solutions), and $8.4 billion of other solutions
(14% of total solutions) including borrowing from local governments
($1.935 billion), redevelopment agency borrowing ($1.7 billion), a one
time savings of from a payroll shift ($1.618 billion) and one time
revenues from the sale of certain assets in the State Compensation
insurance Fund ($1 billion).
|
2.
|
Federal
Stimulus- As mentions above the 2009 Amended Budget Act assumed the
receipt of at least $8 billion from the American Recovery and Reinvestment
Act of 2009 to offset general Fund expenditures in fiscal years 2008-09
and 2009-10. Final estimates put this amount at about $8.1 billion. As of
August 31, 2009 approximately $5 billion has been received by the
state.
|
3.
|
Cash
Flow Management- The deterioration of revenues resulted in a cash shortage
in 2008-09 and 2009-10. In order to manage cash flow and provide for
timely payments of the state’s obligations, the Amended 2009 Budget Act
includes a number of cash solutions to better balance timing of receipts
and disbursement.
|
4.
|
Proposition
98- The Proposition 98 Guarantee for 2009-10 is projected to be $50.4
billion, of which $35 billion is the General Fund Portion.
|
5.
|
K-12
Education- The Amended 2009 Budget Act includes $66.7 billion for K-12
education programs for 2009-10 of which $35 billion is funded from the
General Fund. This is a $1.8 billion decrease or 2.6% below the revised
2008-09 budget. Total per pupil expenditures are projected to decrease by
4262 to $11,259 in 2009-10.
|
6.
|
Higher
Education- The Amended 2009 Budget Act reflects a total funding of $20.9
billion, including 12.5 billion General Fund and Proposition 98 sources
for all major segments of higher education.
|
7.
|
Health
and Human Services- The Amended 2009 Budget Act includes $24.8 billion in
non-Proposition 98 General Fund expenditures for Health and Human Services
programs for 2009-10, which is a decrease of $3.9 billion or 13.5% from
the revised 2008-09 estimate. An additional $3.4 billion in reduction of
these programs were avoided due to the federal stimulus
money.
|
8.
|
Transportation
Funding- The Amended 2009 Budget Act includes $1.441 billion of General
Fund expenditures to fully fund local transportation programs under
proposition 42 in 2009-10. The Amended 2009 Budget Act appropriates $4.2
billion in funds from Proposition 1B bond authorization (from November
20060. Also, $953 million of funds from sales taxes on fuels offsets costs
of programs otherwise likely to be funded with the General
Fund.
|
9.
|
Budget
Stabilization Account- Under normal circumstances, the state would set
aside a specified portion of estimated annual General Fund revenues for
fiscal year 2009-10 in the BSA for reserves that may be used to offset
future shortfalls in the General Fund. Given the magnitude and urgency of
the state’s ongoing financial stress, the Amended 2009 Budget Act
continues to suspend the transfer to the BSA for the 2009-10 Fiscal
Year.
|
10.
|
Prison
Funding- The Amended 2009 Budget Act includes $7.9 billion in General Fund
expenditures for the California Department of Corrections and
Rehabilitation (“CDCR”). A total of $1.2 billion of savings foe CDRC
operations was assumed.
|
1.
|
The
state’s economic performance may be significantly worse than projected
resulting in lower cash receipts from major tax sources.
|
2.
|
Furloughs
and or layoffs of state workers may result in general Fund revenues loss.
The state now expects such actions will result in approximately $367
million of reduced revenues, primarily as a result of less active tax
collections.
|
3.
|
Budget
solutions contained in the Amended 2009 Budget Act and as a result of the
Governor’s vetoes have been the subject of numerous legal challenges since
the adoption of the Amended 2009 Budget Act, and may be the subject of
further litigation the future.
|
4.
|
The
state my required under orders of a federal court to fund prison
healthcare improvements in excess of amounts set forth in the Amended 2009
Budget Act.
|
5.
|
The
state may be unable to sell the State Compensation Insurance Fund for the
price and time provided for in the Amended 2009 Budget Act, and a lawsuit
has been filed to prevent the sale. This is currently included as a $1
billion receipt.
|
6.
|
The
federal government may reject some or all of the modifications to Medi-Cal
called for in the Amended 2009 Budget Act. This represents up to $1
billion.
|
7.
|
The
Amended 2009 Budget Act assumed that legislation and administrative
actions would be taken, including prison and parole reforms and other
changes applicable to the California Department of Corrections and
Rehabilitation.
|
8.
|
The
Legislature adopted a number of bills on or before September 11, 2009 in
the current regular legislative session and in a special session of the
legislature dealing with fiscal
matters.
|
•
|
the
risk that the underlying security, interest rate, market index or other
financial asset will not move in the direction the portfolio managers
anticipate or that the value of the structured or derivative security will
not move or react to changes in the underlying security, interest rate,
market index or other financial asset as anticipated;
|
•
|
the
possibility that there may be no liquid secondary market, or the
possibility that price fluctuation limits may be imposed by the exchange,
either of which may make it difficult or impossible to close out a
position when desired;
|
•
|
the
risk that adverse price movements in an instrument can result in a loss
substantially greater than a fund’s initial investment; and
|
•
|
the
risk that the counterparty will fail to perform its
obligations.
|
(1)
|
a
broker-dealer who purchases fixed-rate bonds and places them in a trust,
or
|
(2)
|
an
issuer seeking to reduce interest expenses by using a floater/inverse
floater structure in lieu of fixed-rate
bonds.
|
•
|
Floater
holders receive interest based on rates set at a six-month interval or at
a Dutch Auction, which is typically held every 28 to 35 days. Current and
prospective floater holders bid the minimum interest rate that they are
willing to accept on the floaters, and the interest rate is set just high
enough to ensure that all of the floaters are sold.
|
•
|
Inverse
floater holders receive all of the interest that remains, if any, on the
underlying bonds after floater interest and auction fees are paid. The
interest rates on inverse floaters may be significantly reduced, even to
zero, if interest rates rise.
|
•
|
3%
of the total voting stock of any one investment company;
|
•
|
5%
of the fund’s total assets with respect to any one investment company;
and
|
•
|
10%
of the fund’s total assets in the
aggregate.
|
•
|
Securities
issued or guaranteed by the U.S. government and its agencies and
instrumentalities
|
•
|
Commercial
Paper
|
•
|
Certificates
of Deposit and Euro Dollar Certificates of Deposit
|
•
|
Bankers’
Acceptances
|
•
|
Short-term
notes, bonds, debentures or other debt instruments
|
•
|
Repurchase
agreements
|
•
|
Money
Market funds
|
Subject
|
Policy
|
Senior
Securities
|
A
fund may not issue senior securities, except as permitted under the
Investment Company Act.
|
Borrowing
|
A
fund may not borrow money, except that a fund may borrow for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33⅓% of the fund’s total assets (including the amount borrowed)
less liabilities (other than borrowings).
|
Lending
|
A
fund may not lend any security or make any other loan if, as a result,
more than 33⅓% of the fund’s total assets would be lent to other parties,
except (i) through the purchase of debt securities in accordance with its
investment objective, policies and limitations or (ii) by engaging in
repurchase agreements with respect to portfolio
securities.
|
Real
Estate
|
A
fund may not purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments. This policy shall not
prevent a fund from investing in securities or other instruments backed by
real estate or securities of companies that deal in real estate or are
engaged in the real estate business.
|
Concentration
|
A
fund may not concentrate its investments in securities of issuers in a
particular industry (other than securities issued or guaranteed by the
U.S. government or any of its agencies or
instrumentalities).
|
Underwriting
|
A
fund may not act as an underwriter of securities issued by others, except
to the extent that the fund may be considered an underwriter within the
meaning of the Securities Act of 1933 in the disposition of restricted
securities.
|
Commodities
|
A
fund may not purchase or sell physical commodities unless acquired as a
result of ownership of securities or other instruments, provided that this
limitation shall not prohibit the fund from purchasing or selling options
and futures contracts or from investing in securities or other instruments
backed by physical commodities.
|
Control
|
A
fund may not invest for purposes of exercising control over
management.
|
(a)
|
there
is no limitation with respect to obligations issued or guaranteed by the
U.S. government, any state, territory or possession of the United States,
the District of Columbia or any of their authorities, agencies,
instrumentalities or political subdivisions and repurchase agreements
secured by such obligations,
|
(b)
|
wholly
owned finance companies will be considered to be in the industries of
their parents if their activities are primarily related to financing the
activities of their parents,
|
(c)
|
utilities
will be divided according to their services, for example, gas, gas
transmission, electric and gas, electric, and telephone will each be
considered a separate industry, and
|
(d)
|
business
credit and personal credit businesses will be considered separate
industries.
|
Subject
|
Policy
|
Leveraging
|
A
fund may not purchase additional investment securities at any time during
which outstanding borrowings exceed 5% of the total assets of the
fund.
|
Futures
and Options
|
The
money market fund may not purchase or sell futures contracts or call
options. This limitation does not apply to options attached to, or
acquired or traded together with, their underlying securities, and does
not apply to securities that incorporate features similar to options or
futures contracts.
|
Liquidity
|
A
fund may not purchase any security or enter into a repurchase agreement
if, as a result, more than 15% of its net assets (10% for the money market
fund) would be invested in illiquid securities. Illiquid securities
include repurchase agreements not entitling the holder to payment of
principal and interest within seven days, and securities that are illiquid
by virtue of legal or contractual restrictions on resale or the absence of
a readily available market.
|
Short
Sales
|
A
fund may not sell securities short, unless it owns or has the right to
obtain securities equivalent in kind and amount to the securities sold
short, and provided that transactions in futures contracts and options are
not deemed to constitute selling securities short.
|
Margin
|
A
fund may not purchase securities on margin, except to obtain such
short-term credits as are necessary for the clearance of transactions, and
provided that margin payments in connection with futures contracts and
options on futures contracts shall not constitute purchasing securities on
margin.
|
•
|
interest-bearing
bank accounts or certificates of deposit;
|
•
|
U.S.
government securities and repurchase agreements collateralized by U.S.
government securities; and
|
•
|
other
money market funds.
|
Aggregate
Trustee Compensation for Fiscal Year Ended August 31,
2009
|
||
Name
of Trustee
|
Total
Compensation
from
the Funds(1)
|
Total
Compensation from the American
Century
Investments Family of Funds(2)
|
John
Freidenrich
|
$
9,274
|
$131,099
|
Ronald
J. Gilson
|
$15,517
|
$219,154
|
Frederick
L. A. Grauer
|
$
9,126
|
$129,099
|
Peter
F. Pervere
|
$10,548
|
$149,105
|
Myron
S. Scholes
|
$
9,275
|
$131,102
|
John
B. Shoven
|
$
9,776
|
$138,102
|
Jeanne
D. Wohlers
|
$
9,933
|
$139,599
|
1
|
Includes
compensation paid to the trustees for the fiscal year ended August 31,
2009, and also includes amounts deferred at the election of the trustees
under the American Century Mutual Funds’ Independent Directors’ Deferred
Compensation Plan.
|
2
|
Includes
compensation paid by the investment companies of the American Century
Investments family of funds served by this board. The total amount of
deferred compensation included in the preceding table is as follows: Mr.
Freidenrich, $0; Mr. Gilson, $219,154; Mr. Grauer, $0; Mr. Pervere,
$19,455; Mr. Scholes, $52,332; Mr. Shoven, $138,102; and Jeanne Wohlers,
$118,659.
|
Name
of Trustees
|
|||||
Jonathan
S.
Thomas(1)
|
John
Freidenrich
|
Ronald
J.
Gilson(1)
|
Frederick
L.A.
Grauer
|
||
Dollar
Range of Equity Securities in the Funds:
|
|||||
California
High-Yield Municipal
|
A
|
A
|
A
|
A
|
|
California
Long-Term Tax-Free
|
A
|
A
|
A
|
A
|
|
California
Tax-Free Bond
|
A
|
A
|
A
|
A
|
|
California
Tax-Free Money Market
|
A
|
A
|
B
|
A
|
|
Aggregate
Dollar Range of Equity
Securities
in all Registered Investment
Companies
Overseen by Trustee in
Family
of Investment Companies
|
E
|
C
|
E
|
A
|
Name
of Trustees
|
||||
Peter
F.
Pervere(1)
|
Myron
S.
Scholes(1)
|
John
B.
Shoven(1)
|
Jeanne
D.
Wohlers(1)
|
|
Dollar
Range of Equity Securities in the Funds:
|
||||
California
High-Yield Municipal
|
A
|
A
|
A
|
A
|
California
Long-Term Tax-Free
|
A
|
A
|
A
|
A
|
California
Tax-Free Bond
|
A
|
A
|
A
|
A
|
California
Tax-Free Money Market
|
A
|
B
|
A
|
E
|
Aggregate
Dollar Range of Equity
Securities
in all Registered Investment
Companies
Overseen by Trustee in
Family
of Investment Companies
|
A
|
E
|
E
|
E
|
1
|
This
trustee owns shares of one or more registered investment companies in the
American Century Investments family of funds that are not overseen by this
board.
|
•
|
Election
of Directors
|
•
|
Ratification
of Selection of Auditors
|
•
|
Equity-Based
Compensation Plans
|
•
|
Anti-Takeover
Proposals
|
¡ Cumulative
Voting
|
|
¡ Staggered
Boards
|
|
¡ “Blank
Check” Preferred Stock
|
|
¡ Elimination
of Preemptive Rights
|
|
¡ Non-Targeted
Share Repurchase
|
|
¡ Increase
in Authorized Common Stock
|
|
¡ “Supermajority”
Voting Provisions or Super Voting Share Classes
|
|
¡ “Fair
Price” Amendments
|
|
¡ Limiting
the Right to Call Special Shareholder Meetings
|
|
¡ Poison
Pills or Shareholder Rights Plans
|
|
¡ Golden
Parachutes
|
|
¡ Reincorporation
|
|
¡ Confidential
Voting
|
|
¡ Opting
In or Out of State Takeover Laws
|
|
•
|
Shareholder
Proposals Involving Social, Moral or Ethical Matters
|
•
|
Anti-Greenmail
Proposals
|
•
|
Changes
to Indemnification Provisions
|
•
|
Non-Stock
Incentive Plans
|
•
|
Director
Tenure
|
•
|
Directors’
Stock Options Plans
|
•
|
Director
Share Ownership
|
•
|
American
Fidelity Assurance Co.
|
•
|
AUL/American
United Life Insurance Company
|
•
|
Ameritas
Life Insurance Corporation
|
•
|
Annuity
Investors Life Insurance Company
|
•
|
Asset
Services Company L.L.C.
|
•
|
Bell
Globemedia Publishing
|
•
|
Bellwether
Consulting, LLC
|
•
|
Bidart
& Ross
|
•
|
Callan
Associates, Inc.
|
•
|
Calvert
Asset Management Company, Inc.
|
•
|
Cambridge
Financial Services, Inc.
|
•
|
Capital
Cities, LLC
|
•
|
Charles
Schwab & Co., Inc.
|
•
|
Cleary
Gull Inc.
|
•
|
Commerce
Bank, N.A.
|
•
|
Connecticut
General Life Insurance Company
|
•
|
Consulting
Services Group, LLC
|
•
|
Curcio
Webb LLC
|
•
|
Defined
Contribution Advisors, Inc.
|
•
|
DWS
Investments Distributors, Inc.
|
•
|
EquiTrust
Life Insurance Company
|
•
|
Evaluation
Associates, LLC
|
•
|
Evergreen
Investment Management Company, LLC
|
•
|
Farm
Bureau Life Insurance Company
|
•
|
First
MetLife Investors Insurance Company
|
•
|
Fund
Evaluation Group, LLC
|
•
|
The
Guardian Life Insurance & Annuity Company, Inc.
|
•
|
Hammond
Associates, Inc.
|
•
|
Hewitt
Associates LLC
|
•
|
ICMA
Retirement Corporation
|
•
|
ING
Insurance Company of America
|
•
|
Iron
Capital Advisors
|
•
|
J.P.
Morgan Retirement Plan Services LLC
|
•
|
Jefferson
National Life Insurance Company
|
•
|
John
Hancock Financial Services,
Inc.
|
•
|
Kansas
City Life Insurance Company
|
•
|
Kmotion,
Inc.
|
•
|
Liberty
Life Insurance Company
|
•
|
The
Lincoln National Life Insurance Company
|
•
|
Lipper
Inc.
|
•
|
Massachusetts
Mutual Life Insurance Company
|
•
|
Merrill
Lynch
|
•
|
MetLife
Investors Insurance Company
|
•
|
MetLife
Investors Insurance Company of California
|
•
|
Midland
National Life Insurance Company
|
•
|
Minnesota
Life Insurance Company
|
•
|
Morgan
Keegan & Co., Inc.
|
•
|
Morgan
Stanley Smith Barney LLC
|
•
|
Morningstar
Associates LLC
|
•
|
Morningstar
Investment Services, Inc.
|
•
|
National
Life Insurance Company
|
•
|
Nationwide
Financial
|
•
|
New
England Pension Consultants
|
•
|
The
Newport Group
|
•
|
Northwestern
Mutual Life Insurance Co.
|
•
|
NYLIFE
Distributors, LLC
|
•
|
Principal
Life Insurance Company
|
•
|
Prudential
Financial
|
•
|
Rocaton
Investment Advisors, LLC
|
•
|
Rogers
Casey, Inc.
|
•
|
S&P
Financial Communications
|
•
|
Security
Benefit Life Insurance Co.
|
•
|
Slocum
|
•
|
SunTrust
Bank
|
•
|
Symetra
Life Insurance Company
|
•
|
Union
Bank of California, N.A.
|
•
|
The
Union Central Life Insurance Company
|
•
|
Valic
Financial Advisors Inc.
|
•
|
VALIC
Retirement Services Company
|
•
|
Vestek
Systems, Inc.
|
•
|
Wachovia
Bank, N.A.
|
•
|
Wells
Fargo Bank, N.A.
|
(1)
|
Full
holdings quarterly as soon as reasonably available;
|
(2)
|
Full
holdings monthly as soon as reasonably available;
|
(3)
|
Top
10 holdings monthly as soon as reasonably available; and
|
(4)
|
Portfolio
characteristics monthly as soon as reasonably
available.
|
Fund/
Class
|
Shareholder
|
Percentage
of
Outstanding
Shares
Owned
of Record
|
California
High-Yield Municipal
|
||
Investor
Class
|
||
Charles
Schwab & Co.
San
Francisco, CA
|
27%
|
|
National
Financial Services Corp.
San
Francisco, CA
|
8%
|
|
A
Class
|
||
Charles
Schwab & Co. Inc.
San
Francisco, CA
|
39%
|
|
MLPF&S
Inc.
Jacksonville,
FL
|
13%
|
|
LPL
Financial
San
Diego, CA
|
6%
|
|
B
Class
|
||
MLPF&S
Inc.
Jacksonville,
FL
|
20%
|
|
American
Enterprise Investment Svcs
Minneapolis,
MN
|
7%
|
|
Pershing
LLC
Jersey
City, NJ
|
6%
|
|
American
Enterprise Investment Svcs
Minneapolis,
MN
|
5%
|
|
C
Class
|
||
MLPF&S
Inc.
Jacksonville,
FL
|
33%
|
|
California
Long-Term Tax-Free
|
||
Investor
Class
|
||
Charles
Schwab & Co.
San
Francisco, CA
|
12%
|
|
A
Class
|
||
H&R
Block Financial Advisors
Detroit,
MI
|
31%
|
|
Charles
Schwab & Co.
San
Francisco, CA
|
12%
|
|
First
Clearing LLC
Pomona,
CA
|
9%
|
Fund/
Class
|
Shareholder
|
Percentage
of
Outstanding
Shares
Owned
of Record
|
California
Long-Term Tax-Free
|
||
A
Class
|
||
MS&CO
FBO Blaine L Mack & Helen M Mack
TR
Virginia C Johnston Trust
Palm
Desert, CA
|
8%
|
|
Pershing
LLC
Jersey
City, NJ
|
7%
|
|
American
Enterprise Investment Svcs
Minneapolis,
MN
|
5%
|
|
B
Class
|
||
American
Century Investment Management, Inc.
Kansas
City, MO
|
100%(1)
|
|
C
Class
|
||
MLPF&S
Jacksonville,
FL
|
58%
|
|
NFS
LLC FEBO
Coensgen
Family 1993 Trust
Charlene
& Bryan T Coensgen
Pleasanton,
CA
|
14%
|
|
Pershing
LLC
Jersey
City, NJ
|
8%
|
|
LPL
Financial Services
San
Diego, CA
|
6%
|
|
California
Tax-Free Bond
|
||
Investor
Class
|
||
Charles
Schwab & Co.
San
Francisco, CA
|
32%
|
|
National
Financial Services Corp.
San
Francisco, CA
|
7%
|
|
California
Tax-Free Money Market
|
||
Investor
Class
|
||
None
|
1
|
Shares
owned of record and beneficially.
|
Investment
Category Fee Schedule for California High-Yield
Municipal
|
|
Category
Assets
|
Fee
Rate
|
First
$1 billion
|
0.3100%
|
Next
$1 billion
|
0.2580%
|
Next
$3 billion
|
0.2280%
|
Next
$5 billion
|
0.2080%
|
Next
$15 billion
|
0.1950%
|
Next
$25 billion
|
0.1930%
|
Thereafter
|
0.1925%
|
Investment
Category Fee Schedule for California Long-Term Tax-Free
and
California Tax-Free Bond
|
|
Category
Assets
|
Fee
Rate
|
First
$1 billion
|
0.2800%
|
Next
$1 billion
|
0.2280%
|
Next
$3 billion
|
0.1980%
|
Next
$5 billion
|
0.1780%
|
Next
$15 billion
|
0.1650%
|
Next
$25 billion
|
0.1630%
|
Thereafter
|
0.1625%
|
Investment
Category Fee Schedule for California Tax-Free Money
Market
|
|
Category
Assets
|
Fee
Rate
|
First
$1 billion
|
0.2700%
|
Next
$1 billion
|
0.2270%
|
Next
$3 billion
|
0.1860%
|
Next
$5 billion
|
0.1690%
|
Next
$15 billion
|
0.1580%
|
Next
$25 billion
|
0.1575%
|
Thereafter
|
0.1570%
|
Complex
Fee Schedule
|
|
Complex
Assets
|
Fee
Rate for Investor Class,
A
Class, B Class and C Class
|
First
$2.5 billion
|
0.3100%
|
Next
$7.5 billion
|
0.3000%
|
Next
$15 billion
|
0.2985%
|
Next
$25 billion
|
0.2970%
|
Next
$25 billion
|
0.2870%
|
Next
$25 billion
|
0.2800%
|
Next
$25 billion
|
0.2700%
|
Next
$25 billion
|
0.2650%
|
Next
$25 billion
|
0.2600%
|
Next
$25 billion
|
0.2550%
|
Thereafter
|
0.2500%
|
•
|
the
funds’ Board of Trustees, or a majority of outstanding shareholder votes
(as defined in the Investment Company Act) and
|
•
|
the
vote of a majority of the trustees of the funds who are not parties to the
agreement or interested persons of the advisor, cast in person at a
meeting called for the purpose of voting on such
approval.
|
Unified
Management Fees
|
|||
Fund
|
2009
|
2008
|
2007
|
California
High-Yield Municipal
|
$2,574,499(1)
|
$3,232,273
|
$3,108,718
|
California
Long-Term Tax-Free
|
$1,953,563
|
$2,140,044
|
$2,174,114
|
California
Tax-Free Bond
|
$2,777,896
|
$2,874,457
|
$2,185,454
|
California
Tax-Free Money Market
|
$2,177,986(2)
|
$2,563,948(3)
|
$2,473,927(4)
|
1
|
Amount
shown reflects waiver by advisor of $10,025 in management
fees.
|
2
|
Amount
shown reflects waiver by advisor of $320,851 in management
fees.
|
3
|
Amount
shown reflects waiver by advisor of $239,471 in management
fees.
|
4
|
Amount
shown reflects waiver by advisor of $95,201 in management
fees.
|
Accounts
Managed (As of August 31, 2009)
|
||||
Registered
Investment
Companies
(e.g.,
American
Century Investments funds
and
American
Century
Investments-
subadvised
funds)
|
Other
Pooled
Investment
Vehicles
(e.g.,
commingled
trusts
and
529
education
savings
plans)
|
Other
Accounts
(e.g.,
separate
accounts
and
corporate
accounts,
including
incubation
strategies
and
corporate
money)
|
||
Joseph
Gotelli
|
Number
of Accounts
|
5
|
0
|
0
|
Assets
|
$2.5
billion(1)
|
N/A
|
N/A
|
|
Alan
Kruss
|
Number
of Accounts
|
4
|
0
|
0
|
Assets
|
$2.1
billion(2)
|
N/A
|
N/A
|
|
G.
David
MacEwen
|
Number
of Accounts
|
10
|
1
|
0
|
Assets
|
$5.1
billion(3)
|
$34.4
million
|
N/A
|
|
Steven
M.
Permut
|
Number
of Accounts
|
12
|
0
|
0
|
Assets
|
$11.4
billion(4)
|
N/A
|
N/A
|
1
|
Includes
$420.9 million in California Long-Term Tax-Free Fund and $595.0 million in
California Tax-Free Bond Fund.
|
2
|
Includes
$595.0 million in California Tax-Free Bond
Fund.
|
3
|
Includes
$420.9 million in California Long-Term Tax-Free
Fund.
|
4
|
Includes
$504.6 million in California High-Yield Municipal Fund; $420.9 million in
California Long-Term Tax-Free Fund; $595.0 million in California Tax-Free
Bond Fund and $439.9 million in California Tax-Free Money Market
Fund.
|
Fund
|
Benchmarks
|
Peer
Group (1)
|
California
High-Yield Municipal
|
S&P
Investortools California Index
|
Morningstar
US-Muni CA Long
|
California
Long-Term Tax-Free
|
Proprietary
Investortools CIM
CA
Long-Term Tax Free Index
|
Morningstar
US-Muni CA Long
|
California
Tax-Free Bond
|
Proprietary
Investortools CIM
CA
Tax Free Index
|
Lipper
CA Intermediate
Muni
Debt Funds
|
1
|
Custom
peer groups are constructed using all the funds in the indicated
categories as a starting point. Funds are then eliminated from the peer
group based on a standardized methodology designed to result in a final
peer group that is both more stable (i.e., has less peer turnover) over
the long term and that more closely represents the fund’s true peers based
on internal investment mandates.
|
Ownership
of Securities
|
||
Aggregate
Dollar Range of Securities in Fund
|
||
California
High-Yield Municipal
|
||
Steven
M. Permut
|
F
|
|
California
Long-Term Tax-Free
|
||
G.
David MacEwen
|
C
|
|
Joseph
Gotelli
|
A
|
|
Steven
M. Permut(1)
|
A
|
California
Tax-Free Bond Fund
|
||
Alan
Kruss
|
C
|
|
Joseph
Gotelli
|
A
|
|
Steven
M. Permut(1)
|
A
|
1
|
This
portfolio manager serves on an investment team that oversees a number of
funds in the same broad investment category and is not expected to invest
in each such fund.
|
(1)
|
auditing
the annual financial statements for each fund and
|
(2)
|
assisting
and consulting in connection with SEC
filings.
|
•
|
applicable
commission rates and other transaction costs charged by the
broker-dealer
|
|
•
|
value
of research provided to the advisor by the broker-dealer (including
economic forecasts, fundamental and technical advice on individual
securities, market analysis, and advice, either directly or through
publications or writings, as to the value of securities, availability of
securities or of purchasers/sellers of securities)
|
|
•
|
timeliness
of the broker-dealer's trade executions
|
|
•
|
efficiency
and accuracy of the broker-dealer’s clearance and settlement
processes
|
|
•
|
broker-dealer’s
ability to provide data on securities executions
|
|
•
|
financial
condition of the broker-dealer
|
|
•
|
the
quality of the overall brokerage and customer service provided by the
broker-dealer
|
•
|
rates
quoted by broker-dealers
|
•
|
the
size of a particular transaction, in terms of the number of shares, dollar
amount, and number of clients involved
|
•
|
the
ability of a broker-dealer to execute large trades while minimizing market
impact
|
•
|
the
complexity of a particular transaction
|
•
|
the
nature and character of the markets on which a particular trade takes
place
|
•
|
the
level and type of business done with a particular firm over a period of
time
|
•
|
the
ability of a broker-dealer to provide anonymity while executing
trades
|
•
|
historical
commission rates
|
•
|
rates
that other institutional investors are paying, based on publicly available
information
|
Fund
|
2009
|
2008
|
2007
|
California
High-Yield Municipal
|
$4,763
|
$21,002
|
$20,187
|
California
Long-Term Tax-Free
|
$5,227
|
$31,361
|
$13,111
|
California
Tax-Free Bond
|
$8,015
|
$47,381
|
$14,893
|
California
Tax-Free Money Market
|
$0
|
$0
|
$0
|
A
Class
|
B
Class
|
C
Class
|
|
California
High-Yield Municipal
|
$260,105
|
$9,615
|
$318,021
|
California
Long-Term Tax-Free
|
$17,782
|
$244
|
$33,926
|
(a)
|
providing
individualized and customized investment advisory services, including the
consideration of shareholder profiles and specific goals;
|
(b)
|
creating
investment models and asset allocation models for use by shareholders in
selecting appropriate funds;
|
(c)
|
conducting
proprietary research about investment choices and the market in
general;
|
(d)
|
periodic
rebalancing of shareholder accounts to ensure compliance with the selected
asset allocation;
|
(e)
|
consolidating
shareholder accounts in one place; and
|
(f)
|
other
individual services.
|
(a)
|
paying
sales commissions, on-going commissions and other payments to brokers,
dealers, financial institutions or others who sell A, B or C Class shares
pursuant to selling agreements;
|
(b)
|
compensating
registered representatives or other employees of the distributor who
engage in or support distribution of the funds’ A, B or C Class
shares;
|
(c)
|
compensating
and paying expenses (including overhead and telephone expenses) of the
distributor;
|
(d)
|
printing
prospectuses, statements of additional information and reports for
other-than-existing shareholders;
|
(e)
|
preparing,
printing and distributing sales literature and advertising materials
provided to the funds’ shareholders and prospective
shareholders;
|
(f)
|
receiving
and answering correspondence from prospective shareholders, including
distributing prospectuses, statements of additional information, and
shareholder reports;
|
(g)
|
providing
facilities to answer questions from prospective shareholders about fund
shares;
|
(h)
|
complying
with federal and state securities laws pertaining to the sale of fund
shares;
|
(i)
|
assisting
shareholders in completing application forms and selecting dividend and
other account options;
|
(j)
|
providing
other reasonable assistance in connection with the distribution of fund
shares;
|
(k)
|
organizing
and conducting sales seminars and payments in the form of transactional
and compensation or promotional incentives;
|
(l)
|
profit
on the foregoing;
|
(m)
|
paying
service fees for providing personal, continuing services to investors, as
contemplated by the Conduct Rules of the FINRA; and
|
(n)
|
such
other distribution and services activities as the advisor determines may
be paid for by the funds pursuant to the terms of the agreement between
the trust and the funds’ distributor and in accordance with Rule 12b-1 of
the Investment Company Act.
|
California
High-Yield Municipal
|
|
A
Class
|
$17,419
|
B
Class
|
$3,206
|
C
Class
|
$11,945
|
California
Long-Term Tax-Free
|
|
A
Class
|
$300
|
B
Class
|
$0
|
C
Class
|
$1,303
|
Purchase
Amount
|
Dealer
Concession
|
<
$99,999
|
4.00%
|
$100,000
- $249,999
|
3.00%
|
$250,000
- $499,999
|
2.00%
|
$500,000
- $999,999
|
1.75%
|
$1,000,000
- $3,999,999
|
1.00%
|
$4,000,000
- $9,999,999
|
0.50%
|
>
$10,000,000
|
0.25%
|
•
|
401(a)
plans
|
•
|
pension
plans
|
•
|
profit
sharing plans
|
•
|
401(k)
plans
|
•
|
money
purchase plans
|
•
|
target
benefit plans
|
•
|
Taft-Hartley
multi-employer pension plans
|
•
|
SERP
and “Top Hat” plans
|
•
|
ERISA
trusts
|
•
|
employee
benefit plans and trusts
|
•
|
employer-sponsored
health plans
|
•
|
457
plans
|
•
|
KEOGH
or HR(10) plans
|
•
|
employer-sponsored
403(b) plans (including self-directed)
|
•
|
nonqualified
deferred compensation plans
|
•
|
nonqualified
excess benefit plans
|
•
|
nonqualified
retirement plans
|
•
|
SIMPLE
IRAs
|
•
|
SEP
IRAs
|
•
|
SARSEP
|
Capital
Loss Carryover
|
||||||
Fund
|
2011
|
2013
|
2014
|
2015
|
2016
|
2017
|
California
High-Yield
Municipal
|
--
|
--
|
--
|
($1,856,960)
|
($59,453)
|
($11,784,441)
|
California
Long-Term
Tax-Free
|
--
|
--
|
--
|
--
|
--
|
--
|
California
Tax-Free
Bond
|
($905,757)
|
($405,593)
|
($322,273)
|
($551,134)
|
($275,673)
|
($2,844,597)
|
California
Tax-Free
Money
Market
|
--
|
--
|
--
|
--
|
--
|
--
|
Ratings
of Corporate and Municipal Debt Securities
|
|
Standard
& Poor’s
|
|
AAA
|
This
is the highest rating assigned by S&P to a debt obligation. It
indicates an extremely strong capacity to pay interest and repay
principal.
|
AA
|
Debt
rated in this category is considered to have a very strong capacity to pay
interest and repay principal. It differs from the highest-rated
obligations only in small degree.
|
A
|
Debt
rated A has a strong capacity to pay interest and repay principal,
although it is somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions than debt in higher-rated
categories.
|
BBB
|
Debt
rated in this category is regarded as having an adequate capacity to pay
interest and repay principal. While it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for debt in this category than in
higher-rated categories. Debt rated below BBB is regarded as having
significant speculative characteristics.
|
BB
|
Debt
rated in this category has less near-term vulnerability to default than
other speculative issues. However, it faces major ongoing uncertainties or
exposure to adverse business, financial, or economic conditions that could
lead to inadequate capacity to meet timely interest and principal
payments. The BB rating also is used for debt subordinated to senior debt
that is assigned an actual or implied BBB rating.
|
B
|
Debt
rated in this category is more vulnerable to nonpayment than obligations
rated BB, but currently has the capacity to pay interest and repay
principal. Adverse business, financial, or economic conditions will likely
impair the obligor’s capacity or willingness to pay interest and repay
principal.
|
CCC
|
Debt
rated in this category is currently vulnerable to nonpayment and is
dependent upon favorable business, financial, and economic conditions to
meet timely payment of interest and repayment of principal. In the event
of adverse business, financial, or economic conditions, it is not likely
to have the capacity to pay interest and repay principal. The CCC rating
category is also used for debt subordinated to senior debt that is
assigned an actual or implied B or B- rating.
|
CC
|
Debt
rated in this category is currently highly vulnerable to nonpayment. This
rating category is also applied to debt subordinated to senior debt that
is assigned an actual or implied CCC rating.
|
C
|
The
rating C typically is applied to debt subordinated to senior debt, and is
currently highly vulnerable to nonpayment of interest and principal. This
rating may be used to cover a situation where a bankruptcy petition has
been filed or similar action taken, but debt service payments are being
continued.
|
D
|
Debt
rated in this category is in default. This rating is used when interest
payments or principal repayments are not made on the date due even if the
applicable grace period has not expired, unless S&P believes that such
payments will be made during such grace period. It also will be used upon
the filing of a bankruptcy petition or the taking of a similar action if
debt service payments are
jeopardized.
|
Moody’s
Investors Service, Inc.
|
|
Aaa
|
This
is the highest rating assigned by Moody’s to a debt obligation. It
indicates an extremely strong capacity to pay interest and repay
principal.
|
Aa
|
Debt
rated in this category is considered to have a very strong capacity to pay
interest and repay principal and differs from Aaa issues only in a small
degree. Together with Aaa debt, it comprises what are generally known as
high-grade bonds.
|
A
|
Debt
rated in this category possesses many favorable investment attributes and
is to be considered as upper-medium-grade debt. Although capacity to pay
interest and repay principal are considered adequate, it is somewhat more
susceptible to the adverse effects of changes in circumstances and
economic conditions than debt in higher-rated
categories.
|
Baa
|
Debt
rated in this category is considered as medium-grade debt having an
adequate capacity to pay interest and repay principal. While it normally
exhibits adequate protection parameters, adverse economic conditions or
changing circumstances are more likely to lead to a weakened capacity to
pay interest and repay principal for debt in this category than in
higher-rated categories. Debt rated below Baa is regarded as having
significant speculative characteristics.
|
Ba
|
Debt
rated Ba has less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or
exposure to adverse business, financial or economic conditions that could
lead to inadequate capacity to meet timely interest and principal
payments. Often the protection of interest and principal payments may be
very moderate.
|
B
|
Debt
rated B has a greater vulnerability to default, but currently has the
capacity to meet financial commitments. Assurance of interest and
principal payments or of maintenance of other terms of the contract over
any long period of time may be small. The B rating category is also used
for debt subordinated to senior debt that is assigned an actual or implied
Ba or Ba3 rating.
|
Caa
|
Debt
rated Caa is of poor standing, has a currently identifiable vulnerability
to default, and is dependent upon favorable business, financial and
economic conditions to meet timely payment of interest and repayment of
principal. In the event of adverse business, financial or economic
conditions, it is not likely to have the capacity to pay interest and
repay principal. Such issues may be in default or there may be present
elements of danger with respect to principal or interest. The Caa rating
is also used for debt subordinated to senior debt that is assigned an
actual or implied B or B3 rating.
|
Ca
|
Debt
rated in this category represent obligations that are speculative in a
high degree. Such debt is often in default or has other marked
shortcomings.
|
C
|
This
is the lowest rating assigned by Moody’s, and debt rated C can be regarded
as having extremely poor prospects of attaining investment
standing.
|
Fitch
Investors Service, Inc.
|
|
AAA
|
Debt
rated in this category has the lowest expectation of credit risk. Capacity
for timely payment of financial commitments is exceptionally strong and
highly unlikely to be adversely affected by foreseeable
events.
|
AA
|
Debt
rated in this category has a very low expectation of credit risk. Capacity
for timely payment of financial commitments is very strong and not
significantly vulnerable to foreseeable events.
|
A
|
Debt
rated in this category has a low expectation of credit risk. Capacity for
timely payment of financial commitments is strong, but may be more
vulnerable to changes in circumstances or in economic conditions than debt
rated in higher categories.
|
Fitch
Investors Service, Inc.
|
|
BBB
|
Debt
rated in this category currently has a low expectation of credit risk and
an adequate capacity for timely payment of financial commitments. However,
adverse changes in circumstances and in economic conditions are more
likely to impair this capacity. This is the lowest investment grade
category.
|
BB
|
Debt
rated in this category has a possibility of developing credit risk,
particularly as the result of adverse economic change over time. However,
business or financial alternatives may be available to allow financial
commitments to be met. Securities rated in this category are not
investment grade.
|
B
|
Debt
rated in this category has significant credit risk, but a limited margin
of safety remains. Financial commitments currently are being met, but
capacity for continued debt service payments is contingent upon a
sustained, favorable business and economic environment.
|
CCC,
CC, C
|
Debt
rated in these categories has a real possibility for default. Capacity for
meeting financial commitments depends solely upon sustained, favorable
business or economic developments. A CC rating indicates that default of
some kind appears probable; a C rating signals imminent
default.
|
DDD,
DD, D
|
The
ratings of obligations in these categories are based on their prospects
for achieving partial or full recovery in a reorganization or liquidation
of the obligor. While expected recovery values are highly speculative and
cannot be estimated with any precision, the following serve as general
guidelines. DDD obligations have the highest potential for recovery,
around 90%-100% of outstanding amounts and accrued interest. DD indicates
potential recoveries in the range of 50%-90% and D the lowest recovery
potential, i.e., below 50%.
Entities
rated in these categories have defaulted on some or all of their
obligations. Entities rated DDD have the highest prospect for resumption
of performance or continued operation with or without a formal
reorganization process. Entities rated DD and D are generally undergoing a
formal reorganization or liquidation process; those rated DD are likely to
satisfy a higher portion of their outstanding obligations, while entities
rated D have a poor prospect of repaying all
obligations.
|
Commercial
Paper Ratings
|
||
S&P
|
Moody’s
|
Description
|
A-1
|
Prime-1
(P-1)
|
This
indicates that the degree of safety regarding timely payment is strong.
Standard & Poor’s rates those issues determined to possess extremely
strong safety characteristics as A-1+.
|
A-2
|
Prime-2
(P-2)
|
Capacity
for timely payment on commercial paper is satisfactory, but the relative
degree of safety is not as high as for issues designated A-1. Earnings
trends and coverage ratios, while sound, will be more subject to
variation. Capitalization characteristics, while still appropriated, may
be more affected by external conditions. Ample alternate liquidity is
maintained.
|
A-3
|
Prime-3
(P-3)
|
Satisfactory
capacity for timely repayment. Issues that carry this rating are somewhat
more vulnerable to the adverse changes in circumstances than obligations
carrying the higher designations.
|
Municipal
Note and Variable Rate Security Ratings
|
||
S&P
|
Moody’s
|
Description
|
SP-1
|
MIG-1;
VMIG-1
|
Notes
are of the highest quality enjoying strong protection from established
cash flows of funds for their servicing or from established and
broad-based access to the market for refinancing, or
both.
|
SP-2
|
MIG-2;
VMIG-2
|
Notes
are of high quality with margins of protection ample, although not so
large as in the preceding group.
|
SP-3
|
MIG-3;
VMIG-3
|
Notes
are of favorable quality with all security elements accounted for, but
lacking the undeniable strength of the preceding grades. Market access for
refinancing, in particular, is likely to be less
well-established.
|
SP-4
|
MIG-4;
VMIG-4
|
Notes
are of adequate quality, carrying specific risk but having protection and
not distinctly or predominantly
speculative.
|
•
|
a
bank or trust company
|
•
|
a
broker-dealer
|
•
|
an
insurance company
|
•
|
another
financial intermediary
|
In
person
|
SEC
Public Reference Room
Washington,
D.C.
Call
202-551-8090 for location and hours.
|
On
the Internet
|
•
EDGAR database at sec.gov
•
By email request at publicinfo@sec.gov
|
By
mail
|
SEC
Public Reference Section
Washington,
D.C. 20549-1520
|
American
Century Investments
americancentury.com
|
|
Self-Directed
Retail Investors
P.O.
Box 419200
Kansas
City, Missouri 64141-6200
1-800-345-2021
or 816-531-5575
|
Banks
and Trust Companies, Broker-Dealers,
Financial
Professionals, Insurance Companies
P.O.
Box 419786
Kansas
City, Missouri 64141-6786
1-800-345-6488
|
Name
and Principal
Business Address*
|
Positions
and Offices
With Underwriter
|
Positions
and Offices
With Registrant
|
James
E. Stowers, Jr.
|
Director
|
none
|
Jonathan
S. Thomas
|
Director
|
President
and Trustee
|
Barry
Fink
|
Director
|
Executive
Vice President
|
Brian
Jeter
|
President
and Chief
Executive
Officer
|
none
|
Jon
W. Zindel
|
Senior
Vice President and
Chief
Accounting Officer
|
Tax
Officer
|
Jami
D. Waggoner
|
Chief
Financial Officer
|
none
|
Mark
Killen
|
Senior
Vice President
|
none
|
David
Larrabee
|
Senior
Vice President
|
none
|
Barry
Mayhew
|
Senior
Vice President
|
none
|
Martha
G. Miller
|
Senior
Vice President
|
none
|
Michael
J. Raddie
|
Chief
Compliance Officer
|
none
|
American
Century California Tax-Free and Municipal Funds
|
|
(Registrant)
|
|
By:
*
___________________________________
Jonathan S. Thomas
President
|
|
SIGNATURES
|
TITLE
|
DATE
|
*
_________________________________
Jonathan
S. Thomas
|
President
and Trustee
|
October
21, 2009
|
*
_________________________________
Robert
J. Leach
|
Vice
President, Treasurer and Chief Financial Officer
|
October
21, 2009
|
*
_________________________________
John
Freidenrich
|
Trustee
|
October
21, 2009
|
*
_________________________________
Ronald
J. Gilson
|
Chairman
of the Board and Trustee
|
October
21, 2009
|
*
_________________________________
Frederick
L.A. Grauer
|
Trustee
|
October
21, 2009
|
*
_________________________________
Peter
F. Pervere
|
Trustee
|
October
21, 2009
|
*
_________________________________
Myron
S. Scholes
|
Trustee
|
October
21, 2009
|
*
_________________________________
John
B. Shoven
|
Trustee
|
October
21, 2009
|
*
_________________________________
Jeanne
D. Wohlers
|
Trustee
|
October
21, 2009
|
*By: /s/ Christine J.
Crossley
Christine J.
Crossley
Attorney in Fact
(pursuant to Power of
Attorney
dated March 12,
2008)
|
EXHIBIT
(d)
|
Management
Agreement with American Century Investment Management, Inc., effective as
of August 1, 2009.
|
')=6MM$N?&-]'X?6_N9EA2
MVMY
KK[.WN[_#Q\O/T2&%FK`0#9??U_M2]%NRZ9R"`@5;_$DHCH.^!
M@3,'$DA$(*`,A5*D&K$H@W&4QXX@_S-^%!ERI,F2*$E^"O'*S*X$KEKJ8/B`
M`!8)`5H1>E"QC\*?*-`DJ*A%GP`Y/0(4P(+`"LXX0ZD4/.,2J%4X$A*HZ6F`
M#P]46,JTU++JZ)@`5]/*0L@SP82C5=$ %`Y,B!@@(G6,F#?T>("'P/'A+H#X@!EV
M\&8E'"(.FTB=)_\BCW94M"(*L6C#\5U1@BO<`!1U(\7OI9&+QLF9$HW#1,F(
ML8BMT^$$UDB;-H81B1>8(W#J&)D[+C&/;\P`'V?C1ST&,8M)W*(=`6D!0>J&
MD*1SY`,6V9I&)C)TD`RD)`M)R0I8DC:8#-]_O,@],&K2D'0D(WKD.,I,?M)X
M7TS7'T-9R5H&!I:#1.0JM9?+N[VRE'OQY5V`>4EA.I&8K=3E,7EI2F7:A9FH
M=&87H?D?3PY3A65\H#75@LW9I))YFN0D:[SY3'#.\H9GK.$[S3A&-'Y3C<74
M@!OO"4?@T#*>T)##C?;1+NR%TX3C?"0_%9G/#.RSG3FD9C(!Z@P`-$#_`?)S
MA40,.D]Q4E14Z6PH!AZZ37=2YY_UA`95'("G`Q`R)[*+J4QEEZ2#S+2`$]K.
M3$D:QYTR($57F*D!K+33FNX4I__1Z4Z7RM2F[G1M'UAI5NX@$Y@6:*@Y=:I6
MM\K5KGKUJV`-JUC'&C6CSO2G$PIJ@:#J`8MBM"8+<,4Y?_C1T7U!=UX:'$.C
MJ0*!9H\@(!<#[!+WG@IE=<
M-K<'\Q5-?>T;C/?&E\"",3""AZ/@!?>FP2J87 R+H>7X6$2R`UE(H)5HFJ"`?-*P+P6S:YW.'#`'K,/
M@3X&\H^#3.0>O1=_I@"!W$2X0%=\X$X4@+*9Q`"EUJYX&"TNP9.:,Z739L`F
M:+F3@L1<%52,85M7/D:6 F?4+K2";DTIOVAZ4W3H].>
ME@>H0PV/45L@>$\J3*RL3.IIF/HB"OA97][5WU97X]6F7."IQK"V(@OYU[X.
M]I"'#6QB"QL11]8(!Z;LDE78*PX'MG4Q<+T7GDBE#U.)MK3M_%\2C,#BDZH)Z'Y[BESP!\`,`''CXDN2236$I@986<=;E9EN9L666*Q20P@`(6
MF=G=&`]`X9!%8&X@IG]D_B```@IX=88"4\B%)EL<0!F`10["Y>`^D,6IP9P\
M)`G$BP$HV)A/WAGYP5(($'HF0G(]E("&BF;`Z`Z._J#``0=-\$H":!X0Q0%\
M=H`&6[,:D,<<`9@):*@6C+I:G1P0D,L]:LXW0*9UH-5?H&*H2B/_K2!R($==
M83Q45RZ_7(=F!VKB=$9=NK:9Q[*5^9I#J1S$05]6#SCY75\>Y(=`3@-)8*V]
M.5WAPT%P]F$@*\Z12YFY2`*[@42H3@!H%5;(T14Q5V3J[`,*G-'+'7I=1K`%
M,4V@7!BN\`%=OXL:K(%GK[P2QP0'(35,<_?DRM.M!':L<8I7-DN!=P)HH0`^
M576`[@8`V)H`37RQ@I9!"'9@4X%01_V>!UY6G6`'3>V#EAK"`J#AM:"6B[,'
MMH`ZZSU@H[)NR1-^X`=-G@G0RM(21$?TT&S_E_,N'/DD@4U_
1.
|
Investment Management Services.
The Investment Manager shall supervise the investments of each
Fund. In such capacity, the Investment Manager shall maintain a continuous
investment program for each such Fund, determine what securities shall be
purchased or sold by each Fund, secure and evaluate such information as it
deems proper and take whatever action is necessary or convenient to
perform its functions, including the placing of purchase and sale
orders.
|
2.
|
Compliance with Laws.
All functions undertaken by the Investment Manager hereunder shall
at all times conform to, and be in accordance with, any requirements
imposed by:
|
|
(a)
|
the
Investment Company Act and any rules and regulations promulgated
thereunder;
|
|
(b)
|
any
other applicable provisions of law;
|
|
(c)
|
the
Declaration of Trust of the Company as amended from time to
time;
|
|
(d)
|
the
By-Laws of the Company as amended from time to
time;
|
|
(e)
|
the
Multiple Class Plan; and
|
|
(f)
|
the
registration statement(s) of the Company, as amended from time to time,
filed under the Securities Act of 1933 and the Investment Company
Act.
|
3.
|
Board Supervision. All
of the functions undertaken by the Investment Manager hereunder shall at
all times be subject to the direction of the Board of Directors, its
executive committee, or any committee or officers of the Company acting
under the authority of the Board of
Directors.
|
4.
|
Payment of
Expenses. The Investment Manager will pay all the
expenses of each class of each Fund that it shall manage, other than
interest, taxes, brokerage commissions, portfolio insurance, extraordinary
expenses, the fees and expenses of the Independent Directors (including
counsel fees), and expenses incurred in connection with the provision of
shareholder services and distribution services under a plan adopted
pursuant to Rule 12b-1 under the Investment Company Act. The Investment
Manager will provide the Company with all physical facilities and
personnel
|
5.
|
Account
Fees. The Board of Directors may impose fees for various
account services, proceeds of which may be remitted to the appropriate
Fund or the Investment Manager at the discretion of the Board of
Directors. At least 60 days’ prior written notice of the intent to impose
such fee must be given to the shareholders of the affected
series.
|
6.
|
Management
Fees.
|
|
(a)
|
In
consideration of the services provided by the Investment Manager, each
class of a Fund shall pay to the Investment Manager a management fee that
is calculated as described in this Section 6 using the fee schedules
described herein.
|
|
(b)
|
Definitions
|
|
(1)
|
An
“Investment Team”
is the Portfolio Managers that the Investment Manager has
designated to manage a given
portfolio.
|
|
(2)
|
An
“Investment
Strategy” is the processes and policies implemented by the
Investment Manager for pursuing a particular investment objective managed
by an Investment Team.
|
|
(3)
|
A
“Primary Strategy
Portfolio” is each Fund, as well as any other series of any other
registered investment company for which the Investment Manager serves as
the investment manager and for which American Century Investment Services,
Inc. serves as the distributor; provided, however, that a registered
investment company that invests its assets exclusively in the shares of
other registered investment companies shall not be a Primary Strategy
Portfolio. Any exceptions to the above requirements shall be approved by
the Board of Directors.
|
|
(4)
|
A
“Secondary Strategy
Portfolio” is another account managed by the Investment Manager
that is managed by the same Investment Team as that assigned to manage any
Primary Strategy Portfolio that shares the same board of directors or
board of trustees as the Company. Any exceptions to this requirement shall
be approved by the Board of
Directors.
|
|
(5)
|
An
“Investment Category”
for a Fund is the group to which the Fund is assigned for
determining the first component of its management fee. Each Primary
Strategy Portfolio is assigned to one of the three Investment Categories
indicated below. The Investment Category assignments for the Funds appear
in Schedule B to this Agreement. The amount of assets in each of the
Investment Categories (“Investment Category Assets”)
is determined as follows:
|
|
a)
|
Money Market Fund Category
Assets. The assets which are used to determine the fee
for this Investment Category is the sum of the assets of all of the
Primary Strategy Portfolios and Secondary Strategy Portfolios
|
|
b)
|
Bond Fund Category
Assets. The assets which are used to determine the fee for this
Investment Category is the sum the assets of all of the Primary Strategy
Portfolios and Secondary Strategy Portfolios that invest primarily in debt
securities and are not subject to Rule 2a-7 under the Investment Company
Act.
|
|
c)
|
Equity Fund Category
Assets. The assets which are used to determine the fee
for this Investment Category is the sum the assets of all of the Primary
Strategy Portfolios and Secondary Strategy Portfolios that invest
primarily in equity securities.
|
|
(6)
|
The
“Per Annum Investment
Category Fee Dollar Amount” for a Fund is the dollar amount
resulting from applying the applicable Investment Category Fee Schedule
for the Fund (as shown on Schedule A) using the applicable Investment
Category Assets.
|
|
(7)
|
The
“Per Annum Investment
Category Fee Rate” for Fund is the percentage rate that results
from dividing the Per Annum Investment Category Fee Dollar Amount for the
Fund by the applicable Investment Category Assets for the
Fund.
|
|
(8)
|
The
“Complex Assets”
is the sum of the assets in all of the Primary Strategy
Portfolios.
|
|
(9)
|
The
“Per Annum Complex Fee
Dollar Amount” for a class of a Fund shall be the dollar amount
resulting from application of the Complex Assets to the Complex Fee
Schedule for the class as shown in Schedule
C.
|
|
(10)
|
The
“Per Annum Complex Fee
Rate” for a class of a Fund is the percentage rate that results
from dividing the Per Annum Complex Fee Dollar Amount for the class of a
Fund by the Complex Assets.
|
|
(11)
|
The
“Per Annum Management
Fee Rate” for a class of a Fund is the sum of the Per Annum
Investment Category Fee Rate applicable to the Fund and the Per Annum
Complex Fee Rate applicable to the class of the
Fund.
|
|
(c)
|
Daily Management Fee
Calculation. For each calendar day, each class of each
Fund shall accrue a fee calculated by multiplying the Per Annum Management
Fee Rate for that class times the net assets of the class on that day, and
further dividing that product by 365 (366 in leap
years).
|
|
(d)
|
Monthly Management Fee Payment.
On the first business day of each month, each class of each series
Fund shall pay the management fee to the Investment Manager for the
previous month. The fee for the previous month shall be the sum of the
Daily Management Fee Calculations for each calendar day in the previous
month.
|
|
(e)
|
Additional Series or Classes.
In the event that the Board of Directors shall determine to issue
any additional series of shares for which it is proposed that the
Investment Manager serve as investment manager, the Company and the
Investment Manager shall enter into an Addendum to this Agreement setting
forth the name of the series and/or classes, as appropriate, the
Applicable Fee and such other terms and conditions as are applicable to
the management of such series and/or classes, or, in the alternative,
enter into a separate management agreement that relates specifically to
such series or classes of shares.
|
7.
|
Continuation of
Agreement. This Agreement shall become effective for
each Fund as of the date first set forth above and shall continue in
effect for each Fund until August 1, 2010, unless sooner terminated as
hereinafter provided, and shall continue in effect from year to year
thereafter for each Fund only as long as such continuance is specifically
approved at least annually (i) by either the Board of Directors or by the
vote of a majority of the outstanding voting securities of such Fund, and
(ii) by the vote of a majority of the Directors, who are not parties to
the Agreement or interested persons of any such party, cast in person at a
meeting called for the purpose of voting on such approval. The
annual approvals provided for herein shall be effective to continue this
Agreement from year to year if given within a period beginning not more
than 90 days prior to August 1st
of each applicable year, notwithstanding the fact that more than 365 days
may have elapsed since the date on which such approval was last
given.
|
8.
|
Termination. This
Agreement may be terminated, with respect to any Fund, by the Investment
Manager at any time without penalty upon giving the Company 60 days’
written notice, and may be terminated, with respect to any Fund, at any
time without penalty by the Board of Directors or by vote of a majority of
the outstanding voting securities of such Fund on 60 days’ written notice
to the Investment Manager.
|
9.
|
Effect of
Assignment. This Agreement shall automatically terminate
with respect to any Fund in the event of its assignment by the Investment
Manager. The term “assignment” for this purpose having the
meaning defined in Section 2(a)(4) of the Investment Company
Act.
|
10.
|
Other
Activities. Nothing herein shall be deemed to limit or
restrict the right of the Investment Manager, or the right of any of its
officers, directors or employees (who may also be a Director, officer or
employee of the Company), to engage in any other business or to devote
time and attention to the management or other aspects of any other
business, whether of a similar or dissimilar nature, or to render services
of any kind to any other corporation, firm, individual or
association.
|
11.
|
Standard of
Care. In the absence of willful misfeasance, bad faith,
gross negligence, or reckless disregard of its obligations or duties
hereunder on the part of the Investment Manager, it, as an inducement to
it to enter into this Agreement, shall not be subject to liability to the
Company or to any shareholder of the Company for any act or omission in
the course of, or connected with, rendering services hereunder or for any
losses that may be sustained in the purchase, holding or sale of any
security.
|
12.
|
Separate
Agreement. The parties hereto acknowledge that certain
provisions of the Investment Company Act, in effect, treat each series of
shares of a registered investment company as a separate investment
company. Accordingly, the parties hereto hereby acknowledge and agree
that, to the extent deemed appropriate and consistent with the Investment
Company Act, this
|
13.
|
Use of the Name “American
Century”. The name “American Century” and all rights to
the use of the name “American Century” are the exclusive property of
American Century Proprietary Holdings, Inc. (“ACPH”). ACPH has
consented to, and granted a non-exclusive license for, the use by the
Company of the name “American Century” in the name of the Company and any
Fund. Such consent and non-exclusive license may be revoked by
ACPH in its discretion if ACPH, the Investment Manager, or a subsidiary or
affiliate of either of them is not employed as the investment adviser of
each Fund. In the event of such revocation, the Company and
each Fund using the name “American Century” shall cease using the name
“American Century” unless otherwise consented to by ACPH or any successor
to its interest in such name.
|
American
Century Investment Management, Inc.
|
American
Century California Tax-Free and Municipal Funds
|
/s/
David H.
Reinmiller
|
/s/
Charles A.
Etherington
|
David
H. Reinmiller
|
Charles
A. Etherington
|
Vice
President
|
Senior
Vice President
|
Rate
Schedules
|
||||
Category
Assets
|
Schedule
1
|
Schedule
2
|
Schedule
3
|
Schedule
4
|
First
$1 billion
|
0.2500%
|
0.2700%
|
0.3500%
|
0.2300%
|
Next
$1 billion
|
0.2070%
|
0.2270%
|
0.3070%
|
0.1870%
|
Next
$3 billion
|
0.1660%
|
0.1860%
|
0.2660%
|
0.1460%
|
Next
$5 billion
|
0.1490%
|
0.1690%
|
0.2490%
|
0.1290%
|
Next
$15 billion
|
0.1380%
|
0.1580%
|
0.2380%
|
0.1180%
|
Next
$25 billion
|
0.1375%
|
0.1575%
|
0.2375%
|
0.1175%
|
Thereafter
|
0.1370%
|
0.1570%
|
0.2370%
|
0.1170%
|
Rate
Schedules
|
|||||||||
Category
Assets
|
Schedule
1
|
Schedule
2
|
Schedule
3
|
Schedule
4
|
Schedule
5
|
Schedule
6
|
Schedule
7
|
Schedule
8
|
Schedule
9
|
First
$1 billion
|
0.2800%
|
0.3100%
|
0.3600%
|
0.6100%
|
0.4100%
|
0.6600%
|
0.3800%
|
0.4600%
|
0.4400%
|
Next
$1 billion
|
0.2280%
|
0.2580%
|
0.3080%
|
0.5580%
|
0.3580%
|
0.6080%
|
0.3280%
|
0.4080%
|
0.3880%
|
Next
$3 billion
|
0.1980%
|
0.2280%
|
0.2780%
|
0.5280%
|
0.3280%
|
0.5780%
|
0.2980%
|
0.3780%
|
0.3580%
|
Next
$5 billion
|
0.1780%
|
0.2080%
|
0.2580%
|
0.5080%
|
0.3080%
|
0.5580%
|
0.2780%
|
0.3580%
|
0.3380%
|
Next
$15 billion
|
0.1650%
|
0.1950%
|
0.2450%
|
0.4950%
|
0.2950%
|
0.5450%
|
0.2650%
|
0.3450%
|
0.3250%
|
Next
$25 billion
|
0.1630%
|
0.1930%
|
0.2430%
|
0.4930%
|
0.2930%
|
0.5430%
|
0.2630%
|
0.3430%
|
0.3230%
|
Thereafter
|
0.1625%
|
0.1925%
|
0.2425%
|
0.4925%
|
0.2925%
|
0.5425%
|
0.2625%
|
0.3425%
|
0.3225%
|
Rate
Schedules
|
|||||||
Category
Assets
|
Schedule
1
|
Schedule
2
|
Schedule
3
|
Schedule
4
|
Schedule
5
|
Schedule
6
|
Schedule
7
|
First
$1 billion
|
0.5200%
|
0.7200%
|
1.2300%
|
0.8700%
|
1.0000%
|
1.1500%
|
1.3000%
|
Next
$5 billion
|
0.4600%
|
0.6600%
|
1.1700%
|
0.8100%
|
0.9400%
|
1.0900%
|
1.2400%
|
Next
$15 billion
|
0.4160%
|
0.6160%
|
1.1260%
|
0.7660%
|
0.8960%
|
1.0460%
|
1.1960%
|
Next
$25 billion
|
0.3690%
|
0.5690%
|
1.0790%
|
0.7190%
|
0.8490%
|
0.9990%
|
1.1490%
|
Next
$50 billion
|
0.3420%
|
0.5420%
|
1.0520%
|
0.6920%
|
0.8220%
|
0.9720%
|
1.1220%
|
Next
$150 billion
|
0.3390%
|
0.5390%
|
1.0490%
|
0.6890%
|
0.8190%
|
0.9690%
|
1.1190%
|
Thereafter
|
0.3380%
|
0.5380%
|
1.0480%
|
0.6880%
|
0.8180%
|
0.9680%
|
1.1180%
|
Series
|
Category
|
Applicable
Fee Schedule Number
|
California
Tax-Free Money Market Fund
|
Money
Market Funds
|
2
|
California
Tax-Free Bond Fund
|
Bond
Funds
|
1
|
California
Long-Term Tax-Free Fund
|
Bond
Funds
|
1
|
California
High-Yield Municipal Fund
|
Bond
Funds
|
2
|
Rate
Schedules
|
||
Complex
Assets
|
Institutional
Class
|
All
Other Classes
|
First
$2.5 billion
|
0.1100%
|
0.3100%
|
Next
$7.5 billion
|
0.1000%
|
0.3000%
|
Next
$15.0 billion
|
0.0985%
|
0.2985%
|
Next
$25.0 billion
|
0.0970%
|
0.2970%
|
Next
$25.0 billion
|
0.0870%
|
0.2870%
|
Next
$25.0 billion
|
0.0800%
|
0.2800%
|
Next
$25.0 billion
|
0.0700%
|
0.2700%
|
Next
$25.0 billion
|
0.0650%
|
0.2650%
|
Next
$25.0 billion
|
0.0600%
|
0.2600%
|
Next
$25.0 billion
|
0.0550%
|
0.2550%
|
Thereafter
|
0.0500%
|
0.2500%
|
Series
|
Investor
Class
|
Institu-
tional
Class
|
Advisor
Class
|
A
Class
|
B
Class
|
C
Class
|
R
Class
|
Ø California
High-Yield Municipal Fund
|
Yes
|
No
|
No
|
Yes
|
Yes
|
Yes
|
No
|
Ø California
Tax Free Money Market Fund
|
Yes
|
No
|
No
|
No
|
No
|
No
|
No
|
Ø California
Tax-Free Bond Fund
|
Yes
|
No
|
No
|
No
|
No
|
No
|
No
|
Ø California
Long-Term Tax-Free Fund
|
Yes
|
No
|
No
|
Yes
|
Yes
|
Yes
|
No
|
Re:
|
American
Century California Tax-Free and Municipal Funds (the
"Registrant")
|
1933
Act File No. 2-82734, Post-Effective Amendment No. 45
|
|
1940
Act File No. 811-3706, Amendment No.
49
|
American Century Investments
|
|
P.O.
Box 410141, 4500 Main Street
|
1-800-345-2021
or 816-531-5575
|
Kansas
City, MO 64141-0141
|
www.americancentury.com
|