-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GgIfSF9edjl/FqmBqgg8vaZuqxEcsHypxz9XFTHbNqHv7iOZD/dS+XqshyuZJKCL DJqDgbh8pn8YyXUliIku+g== 0000717316-10-000071.txt : 20100831 0000717316-10-000071.hdr.sgml : 20100831 20100831115631 ACCESSION NUMBER: 0000717316-10-000071 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20100831 DATE AS OF CHANGE: 20100831 EFFECTIVENESS DATE: 20100831 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN CENTURY CALIFORNIA TAX FREE & MUNICIPAL FUNDS CENTRAL INDEX KEY: 0000717316 IRS NUMBER: 946562826 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-82734 FILM NUMBER: 101049020 BUSINESS ADDRESS: STREET 1: 1665 CHARLESTON RD CITY: MOUNTAIN VIEW STATE: CA ZIP: 94043 BUSINESS PHONE: 8003218321 MAIL ADDRESS: STREET 1: 1665 CHARLESTON RD CITY: MOUNTAIN VIEW STATE: CA ZIP: 94043 FORMER COMPANY: FORMER CONFORMED NAME: BENHAM CALIFORNIA TAX FREE TRUST / DATE OF NAME CHANGE: 19960815 FORMER COMPANY: FORMER CONFORMED NAME: BENHAM CALIFORNIA TAX FREE & MUNICIPAL FUNDS DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: BENHAM CALIFORNIA TAX FREE TRUST DATE OF NAME CHANGE: 19910218 0000717316 S000005668 CALIFORNIA TAX-FREE BOND FUND C000015525 INVESTOR CLASS BCITX C000087985 INSTITUTIONAL CLASS BCTIX C000087986 A CLASS BCIAX C000087987 C CLASS BCIYX 497 1 supp.htm PROSPECTUS SUPPLEMENT supp.htm
 
American Century California Tax-Free and Municipal Funds
 
Prospectus Supplement
 
California Tax-Free Bond Fund
 
Supplement dated September 1, 2010 ¡ Prospectus dated March 1, 2010
 
 
All changes are effective November 1, 2010, unless otherwise noted.
 
 
The California Tax-Free Bond Fund will be renamed California Intermediate-Term Tax-Free Bond Fund.
 
The following replaces the second paragraph under the Principal Investments, Principal Risks and Performance section on page 3.
 
The fund’s weighted average maturity will be not less than three years nor more than ten years. However, there is no maturity limit on individual securities.
 
 
The following replaces the second paragraph (excluding call-outs) under What are the fund’s principal investment strategies? sub-section of the Objectives, Strategies and Risks section on page 6.
 
The fund’s weighted average maturity will be not less than three years nor more than ten years. However, there is no maturity limit on individual securities. The portfolio managers actively manage the fund’s portfolio, seeking to manage the interest rate risk and credit risk assumed by the fund.
 
 
 
Weighted average maturity (WAM) is a method for comparing portfolios of bonds by calculating the average time until full maturity weighted by the market value of the principal amount to be paid. A fund that contains a large proportion of bonds with significant periods of time remaining on their maturity terms will have a longer WAM, while the WAM will be shorter for a fund that contains more bonds close to maturity.
 
 
The following is added as the fifth paragraph (excluding call-outs) under What are the principal risks of investing in the fund? sub-section of the Objectives, Strategies and Risks section on page 7.
 
The portfolio managers monitor the fund’s weighted average maturity and seek to adjust it as appropriate, taking into account market conditions and other relevant factors. Thus, under normal market conditions, its potential income and potential loss are moderate as compared to other funds, but may fluctuate as the portfolio managers reposition the fund in response to changing market conditions.
 

 
Effective August 1, 2010, the fund’s benchmark was changed from the Barclays Capital 5 Year General Obligation Index to the Barclays Capital 7 Year Municipal Bond Index.










©2010 American Century Proprietary Holdings, Inc. All rights reserved.

CL-SPL-69421 1009
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