SEMIANNUAL CERTIFIED SHAREHOLDER REPORTS

N-CSRS 1 n-csrs.htm SEMIANNUAL CERTIFIED SHAREHOLDER REPORT SEMIANNUAL CERTIFIED SHAREHOLDER REPORTS

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

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



Investment Company Act file number              811-7820
                                    -------------------------------------------


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


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


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


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

Date of fiscal year end:         03-31
                         -------------------------------------------------------

Date of reporting period:        09-30-2007
                         -------------------------------------------------------






ITEM 1.  REPORTS TO STOCKHOLDERS.

[front cover]

American Century Investments
Semiannual Report               September 30, 2007

[photo of fall]

Mid Cap Value Fund
Small Cap Value Fund

[american century investments logo and text logo]




OUR MESSAGE TO YOU

To help you monitor your investment, my colleagues and I take pride in
providing you with the semiannual report for the American Century® Mid Cap
Value and Small Cap Value funds for the six months ended September 30, 2007.
This has been an eventful and exciting period for us. We've been working
diligently to secure a smooth executive leadership transition.

I'm honored to be addressing you in the "Our Message" space long devoted to
company founder Jim Stowers, Jr. and his son Jim Stowers III. The Stowers
family remains an integral part of our heritage, leadership, and financial
structure. Jim Jr. continues as co-chair of the American Century Companies,
Inc. (ACC) board of directors with Richard Brown, who has been on the board
since 1998 and co-chairs the Stowers Institute for Medical Research board.

But times and opportunities change. As the latest step in a career transition
that began when he relinquished his executive leadership and investment
management responsibilities in early 2005, Jim III stepped down from the ACC
board in July 2007 to focus on new business ventures. Jim III's move reflects
his family's comfort with our direction and leadership, and gives the Stowers
more leeway to devote time and energy to other important priorities, such as
the Stowers Institute for Medical Research.

Meanwhile, American Century Investments, our clients, and our employees have
been my top priority since I became company president and CEO in March. We've
also added the executive talents of overall chief investment officer Enrique
Chang, international equity CIO Mark On, U.S. growth equity CIO Steve Lurito,
and chief operating officer Barry Fink.

This skilled group, combined with our existing senior management team, has
already had a positive impact on the development and management of the
products and services we take pride in delivering to you.

/s/Jonathan Thomas
Jonathan Thomas

[photo of Jonathan Thomas]

Jonathan Thomas
PRESIDENT
AMERICAN CENTURY COMPANIES, INC.

[photo of James E. Stowers, Jr.]

James E. Stowers, Jr.
FOUNDER AND CO-CHAIRMAN OF THE BOARD
AMERICAN CENTURY COMPANIES, INC.

[photo of Richard Brown]

Richard Brown
CO-CHAIRMAN OF THE BOARD
AMERICAN CENTURY COMPANIES, INC.




TABLE OF CONTENTS

     Market Perspective. . . . . . . . . . . . . . . . . . . . . . . . . .     2
        U.S. Stock Index Returns . . . . . . . . . . . . . . . . . . . . .     2

MID CAP VALUE

     Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     3
     Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . .     5
      Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . .     5
      Top Five Industries. . . . . . . . . . . . . . . . . . . . . . . . .     6
      Types of Investments in Portfolio. . . . . . . . . . . . . . . . . .     6
     Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . .     7

SMALL CAP VALUE

     Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    10
     Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . .    12
      Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . .    12
      Top Five Industries. . . . . . . . . . . . . . . . . . . . . . . . .    13
      Types of Investments in Portfolio. . . . . . . . . . . . . . . . . .    13
     Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . .    14

     Shareholder Fee Examples. . . . . . . . . . . . . . . . . . . . . . .    20

FINANCIAL STATEMENTS

     Statement of Assets and Liabilities . . . . . . . . . . . . . . . . .    22
     Statement of Operations . . . . . . . . . . . . . . . . . . . . . . .    24
     Statement of Changes in Net Assets. . . . . . . . . . . . . . . . . .    25
     Notes to Financial Statements . . . . . . . . . . . . . . . . . . . .    26
     Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . .    34

OTHER INFORMATION

     Proxy Voting Results. . . . . . . . . . . . . . . . . . . . . . . . .    42
     Approval of Management Agreements for Mid Cap Value
     and Small Cap Value . . . . . . . . . . . . . . . . . . . . . . . . .    44
     Share Class Information . . . . . . . . . . . . . . . . . . . . . . .    48
     Additional Information. . . . . . . . . . . . . . . . . . . . . . . .    49
     Index Definitions . . . . . . . . . . . . . . . . . . . . . . . . . .    50

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




MARKET PERSPECTIVE

[photo of Chief Investment Officer]

By Enrique Chang, Chief Investment Officer, American Century Investments

STOCKS ADVANCED IN A VOLATILE ENVIRONMENT

U.S. stocks produced positive results for the six months ended September 30,
2007, overcoming a confluence of challenges that led to extraordinary market
volatility.

The stock market enjoyed a steady rally during the first half of the six-month
period thanks to corporate earnings growth, which decelerated but continued to
surpass expectations. Robust merger activity also boosted stocks as leveraged
buy-outs from private equity firms put the volume of deal-making ahead of last
year's record pace.

After reaching all-time highs in mid-July, however, the major stock indexes
declined sharply as worsening problems in the subprime mortgage market led to
a credit crisis that threatened to derail the economic expansion. Tighter
lending standards crimped funding for leveraged buy-outs, removing an
important leg of support for the stock market, and rising energy and commodity
prices sparked inflation worries despite slowing economic activity.

As investors grew increasingly risk-averse, the Federal Reserve (the Fed)
stepped in to provide a measure of relief and comfort. The Fed lowered its
discount rate in mid-August and federal funds rate target in September--the
Fed's first rate cuts since June 2003. The Fed's actions helped alleviate some
of the credit and economic concerns, allowing the major stock indexes to stage
a solid recovery during the final six weeks of the period.

LARGE-CAP AND GROWTH OUTPERFORMED

Large-cap stocks delivered the best returns (see the accompanying table),
followed by mid- and small-cap issues. Growth stocks, which have trailed value
issues for much of the decade, enjoyed a resurgence during the six-month
period, outpacing value shares by a wide margin across all market
capitalizations.

Energy was the best-performing sector in the stock market during the period,
benefiting from a 24% increase in the price of oil. Information technology and
industrials stocks also fared well. The only two sectors of the market to
decline during the period were financials and consumer discretionary.

U.S. Stock Index Returns
For the six months ended September 30, 2007*

RUSSELL 1000 INDEX (LARGE-CAP)             7.99%
Russell 1000 Growth Index                 11.35%
Russell 1000 Value Index                   4.67%

RUSSELL MIDCAP INDEX                       4.89%
Russell Midcap Growth Index                9.03%
Russell Midcap Value Index                -0.03%

RUSSELL 2000 INDEX (SMALL-CAP)             1.19%
Russell 2000 Growth Index                  6.70%
Russell 2000 Value Index                  -4.10%

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


------
2


PERFORMANCE
Mid Cap Value

Total Returns as of September 30, 2007
                                                     Average Annual
                                                         Returns
                                                          Since         Inception
                             6 months(1)   1 year       Inception          Date

INVESTOR CLASS                  2.66%      15.59%        15.36%          3/31/04

RUSSELL MIDCAP VALUE
INDEX(2)                        -0.03%     13.75%        15.72%             --

Institutional Class             2.76%      15.73%        17.04%           8/2/04

Advisor Class                   2.53%      15.30%        14.63%          1/13/05

R Class                         2.48%      15.02%        12.22%          7/29/05

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

(2) Data provided by Lipper Inc. - A Reuters Company. ©2007 Reuters. All
rights reserved. Any copying, republication or redistribution of Lipper
content, including by caching, framing or similar means, is expressly
prohibited without the prior written consent of Lipper. Lipper shall not be
liable for any errors or delays in the content, or for any actions taken in
reliance thereon.

  The data contained herein has been obtained from company reports, financial
reporting services, periodicals and other resources believed to be reliable.
Although carefully verified, data on compilations is not guaranteed by Lipper
and may be incomplete. No offer or solicitations to buy or sell any of the
securities herein is being made by Lipper.

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-2021 or visit
americancentury.com. International investing involves special risks, such as
political instability and currency fluctuations.

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


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3


Mid Cap Value

Growth of $10,000 Over Life of Class

$10,000 investment made March 31, 2004

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

Investor Class                  2.80%   20.48%  15.22%   15.59%

Russell Midcap Value Index      3.50%   26.13%  12.28%   13.75%

*From 3/31/04, the Investor Class's inception date. Not annualized.

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-2021 or visit
americancentury.com. International investing involves special risks, such as
political instability and currency fluctuations.

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


------
4


PORTFOLIO COMMENTARY
Mid Cap Value

Portfolio Managers: Scott Moore, Michael Liss, and Phil Davidson

PERFORMANCE SUMMARY

Mid Cap Value gained 2.66%* for the six months ended September 30, 2007. By
comparison, the median for Morningstar's Mid Cap Value category** (whose
performance, like Mid Cap Value's, reflects fund operating expenses) advanced
2.30%. The fund's benchmark, the Russell Midcap Value Index, declined -0.03%.
Its returns do not include operating expenses.

The portfolio's strong return was achieved in the challenging market
environment described in the Market Perspective on page 2. Overall, growth
stocks outperformed value across the capitalization spectrum and investors
favored stocks with lower dividend yields. Against that market backdrop, Mid
Cap Value benefited from strong stock selection. In addition, during the
reporting period, the portfolio's small portion of international holdings also
contributed to results.

Over time, our disciplined investment approach has provided longer-term
investors with solid performance. Since Mid Cap Value's inception on March 31,
2004, the portfolio has produced an average annualized return of 15.36% versus
15.72% for the Russell Midcap Value Index.

CONSUMER STAPLES LED PORTFOLIO

Our mix of companies in the consumer staples sector added to performance.
Boosting results was an overweight position in several names not represented
in the benchmark. Specifically, we owned Diamond Foods, which processes and
distributes nuts and other snack foods. In addition to beating earnings
forecasts, the company has worked towards meeting its long-term growth
objectives by continuing to improve operating performance, expand sales
channels, and accelerate earnings growth.

Meanwhile, Kraft -- the largest branded food company in the U.S. -- added to
results as its stock traded on its own fundamentals after the company's
spinoff from Altria Group. Kraft has also invested in new product development,
improved marketing, and is considering the divestiture of non-core businesses.

ALLOCATION TO UTILITIES ADDED VALUE

As a sector, utilities -- which accounted for 14.5% of the index at the end of
the period-- was a neutral performer. Our stock selection generated several
notable contributors, including Virginia-based Dominion Resources, which
provides gas and

Top Ten Holdings as of September 30, 2007
                                          % of         % of
                                       net assets   net assets
                                          as of        as of
                                         9/30/07      3/31/07
Freddie Mac                               3.8%         3.4%
SunTrust Banks, Inc.                      3.7%         1.5%
iShares S&P MidCap 400 Index Fund         3.4%         3.3%
Ambac Financial Group, Inc.               3.0%         1.5%
MGIC Investment Corp.                     3.0%         2.7%
Kraft Foods Inc. Cl A                     2.8%         2.1%
Speedway Motorsports Inc.                 2.5%         2.9%
RC2 Corp.                                 2.1%         0.4%
South Financial Group Inc. (The)          2.1%         1.0%
International Speedway Corp.              2.0%         1.1%

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

** The median return for Morningstar's Mid Cap Value category was 14.68% for
the one-year period ended September 30, 2007. ©2007 Morningstar, Inc. All
Rights Reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers: (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or timely.
Neither Morningstar nor its content providers are responsible for any damages
or losses arising from any use of this information.


------
5


electric services primarily in northeastern, mid-Atlantic and mid-western
states. The company used proceeds from the sale of some of its exploration and
production businesses to repurchase roughly 16% of its outstanding shares
through a Dutch auction, in which we participated.

STOCK SELECTION BOOSTED RESULTS

Health care and consumer discretionary stocks enhanced our performance
relative to the Russell Midcap Value Index. In health care, we owned top
performers Beckman Coulter, Symmetry Medical and Watson Pharmaceuticals. In
consumer discretionary, the portfolio benefited from our small allocation to
the household durables segment, and specifically homebuilders -- areas that
provided negative returns for the benchmark.

UNDERWEIGHT POSITION IN MATERIALS DETRACTED

The materials sector generated solid results for the Russell Midcap Value
Index. The portfolio's underweight position, maintained because of high
valuations, hindered relative returns. Our smaller-than-the-benchmark position
in chemical companies was particularly costly.

Materials also provided one of our top detractors, Bemis Co. Inc., a major
producer of flexible packaging, much of it for the food industry. The company
reported disappointing earnings and reduced its earnings guidance, citing
lower demand across its end markets.

FINANCIALS: A MIXED BAG

Mid Cap Value's allocation to the financials sector added to results on a
relative basis. The sector also provided two top detractors -- MGIC Investment
Corporation and Ambac Financial. MGIC, the nation's largest private mortgage
insurer, was hurt by the housing slowdown and by significant financial losses
from a joint venture involved in restructuring subprime mortgages. Ambac, a
leading municipal bond insurer, saw its stock decline on concern about bond
insurers in general and fears about the company's exposure to subprime loans.

STARTING POINT FOR NEXT REPORTING PERIOD

Your management team follows a disciplined, bottom-up process, selecting
companies one at a time for the portfolio. As of September 30, 2007, we
continued to see opportunities in health care and consumer staples stocks,
reflected by our overweight positions in these sectors, relative to the
benchmark. Our fundamental analysis and valuation work contributed to our
smaller relative weightings in financials, telecommunications, and energy
stocks.

Top Five Industries as of September 30, 2007
                                       % of         % of
                                    net assets   net assets
                                       as of        as of
                                      9/30/07      3/31/07
Food Products                          9.6%         8.1%
Commercial Banks                       9.2%         7.2%
Insurance                              8.9%         8.3%
Thrifts & Mortgage Finance             6.8%         7.4%
Commercial Services & Supplies         5.5%         3.2%

Types of Investments in Portfolio
                                       % of         % of
                                    net assets   net assets
                                       as of        as of
                                      9/30/07      3/31/07
Common Stocks                          98.3%        97.0%
Temporary Cash Investments             1.8%         3.7%
Other Assets and Liabilities*         (0.1)%       (0.7)%

* Includes securities lending collateral and other assets and liabilities.


------
6


SCHEDULE OF INVESTMENTS
Mid Cap Value

SEPTEMBER 30, 2007 (UNAUDITED)

Shares                                                                Value

Common Stocks -- 98.3%

AIRLINES -- 1.7%
         467,403  Southwest Airlines Co.                            $ 6,917,566
                                                                   ------------
AUTO COMPONENTS -- 0.8%
          53,732  Autoliv, Inc.                                       3,210,487
                                                                   ------------
AUTOMOBILES -- 1.6%
          31,200  Bayerische Motoren Werke AG ORD                     2,013,678
          86,600  Honda Motor Co., Ltd. ORD                           2,912,953
          65,117  Winnebago Industries(1)                             1,554,994
                                                                   ------------
                                                                      6,481,625
                                                                   ------------
BEVERAGES -- 1.6%
         103,662  Anheuser-Busch Companies, Inc.                      5,182,063
          49,035  Coca-Cola Enterprises Inc.                          1,187,628
                                                                   ------------
                                                                      6,369,691
                                                                   ------------
BUILDING PRODUCTS -- 0.8%
         139,848  Masco Corp.                                         3,240,278
                                                                   ------------
CAPITAL MARKETS -- 0.7%
          24,600  Bear Stearns Companies Inc. (The)                   3,021,126
                                                                   ------------
CHEMICALS -- 0.6%
          34,901  Minerals Technologies Inc.                          2,338,367
                                                                   ------------
COMMERCIAL BANKS -- 9.2%
          67,000  Associated Banc-Corp.                               1,985,210
          69,695  BB&T Corporation                                    2,814,981
         119,185  Marshall & Ilsley Corp.                             5,216,727
         370,577  South Financial Group Inc. (The)                    8,426,921
         199,206  SunTrust Banks, Inc.                               15,073,918
          39,671  United Bankshares, Inc.(1)                          1,207,585
          34,800  Zions Bancorporation                                2,389,716
                                                                   ------------
                                                                     37,115,058
                                                                   ------------
COMMERCIAL SERVICES & SUPPLIES -- 5.5%
          41,000  Avery Dennison Corp.                                2,337,820
         157,193  HNI Corp.                                           5,658,948
         146,759  Pitney Bowes, Inc.                                  6,665,793
          81,101  Republic Services, Inc.                             2,652,814
         128,244  Waste Management, Inc.                              4,839,929
                                                                   ------------
                                                                     22,155,304
                                                                   ------------
COMMUNICATIONS EQUIPMENT -- 0.3%
          62,717  Motorola, Inc.                                      1,162,146
                                                                   ------------

Shares                                                                    Value

COMPUTERS & PERIPHERALS -- 1.8%
          26,300  Diebold, Inc.                                     $ 1,194,546
         437,925  QLogic Corp.(2)                                     5,890,091
                                                                   ------------
                                                                      7,084,637
                                                                   ------------
CONTAINERS & PACKAGING -- 1.9%
         263,636  Bemis Co., Inc.                                     7,674,444
                                                                   ------------
DISTRIBUTORS -- 0.3%
          22,894  Genuine Parts Company                               1,144,700
                                                                   ------------
DIVERSIFIED -- 3.4%
         155,420  iShares S&P MidCap 400 Index Fund                  13,684,731
                                                                   ------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.3%
          58,936  Iowa Telecommunications Services Inc.(1)            1,169,880
                                                                   ------------
ELECTRIC UTILITIES -- 4.5%
         120,302  IDACORP, Inc.                                       3,938,687
         287,120  Portland General Electric Co.                       7,981,936
         182,900  Sierra Pacific Resources                            2,877,017
         143,400  Westar Energy Inc.                                  3,521,904
                                                                   ------------
                                                                     18,319,544
                                                                   ------------
ELECTRICAL EQUIPMENT -- 0.6%
          45,200  Hubbell Inc. Cl B                                   2,581,824
                                                                   ------------
ELECTRONIC EQUIPMENT & INSTRUMENTS -- 4.1%
          47,301  Littelfuse, Inc.(1)(2)                              1,688,173
         250,900  Molex Inc.                                          6,756,737
         183,389  Tyco Electronics Ltd.                               6,497,472
         134,200  Vishay Intertechnology, Inc.(2)                     1,748,626
                                                                   ------------
                                                                     16,691,008
                                                                   ------------
FOOD PRODUCTS -- 9.6%
          82,300  Campbell Soup Co.                                   3,045,100
         191,990  ConAgra Foods, Inc.                                 5,016,699
         267,671  Diamond Foods Inc.                                  5,530,083
          48,422  General Mills, Inc.                                 2,808,960
         167,075  H.J. Heinz Co.                                      7,718,864
          70,400  Hershey Co. (The)                                   3,267,264
         325,013  Kraft Foods Inc. Cl A                              11,216,198
                                                                   ------------
                                                                     38,603,168
                                                                   ------------
GAS UTILITIES -- 2.0%
         193,019  Southwest Gas Corp.                                 5,460,508
          81,252  WGL Holdings Inc.                                   2,753,630
                                                                      8,214,138
                                                                   ------------


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7


Mid Cap Value

Shares                                                                    Value

HEALTH CARE EQUIPMENT & SUPPLIES -- 3.0%
          50,412  Beckman Coulter, Inc.                             $ 3,718,389
          78,700  Covidien Ltd.(2)                                    3,266,050
         300,088  Symmetry Medical Inc.(2)                            5,011,470
                                                                   ------------
                                                                     11,995,909
                                                                   ------------
HEALTH CARE PROVIDERS & SERVICES -- 1.7%
         136,400  LifePoint Hospitals Inc.(2)                         4,093,364
          53,937  Universal Health Services, Inc. Cl B                2,935,252
                                                                   ------------
                                                                      7,028,616
                                                                   ------------
HOTELS, RESTAURANTS & LEISURE -- 5.0%
          74,100  CEC Entertainment Inc.(2)                           1,991,067
         176,008  International Speedway Corp.                        8,071,727
         278,130  Speedway Motorsports Inc.                          10,290,810
                                                                   ------------
                                                                     20,353,604
                                                                   ------------
HOUSEHOLD DURABLES -- 0.6%
          13,200  Hunter Douglas N.V. ORD                             1,186,652
          13,900  Whirlpool Corp.                                     1,238,490
                                                                   ------------
                                                                      2,425,142
                                                                   ------------
HOUSEHOLD PRODUCTS -- 2.6%
          63,574  Clorox Company                                      3,877,378
          95,719  Kimberly-Clark Corp.                                6,725,217
                                                                   ------------
                                                                     10,602,595
                                                                   ------------
INSURANCE -- 8.9%
          29,004  Allstate Corp.                                      1,658,739
         192,527  Ambac Financial Group, Inc.                        12,111,873
          68,711  Chubb Corp.                                         3,685,658
         235,927  Genworth Financial Inc. Cl A                        7,250,037
          25,381  Hartford Financial Services Group Inc. (The)        2,349,012
          78,550  Horace Mann Educators Corp.                         1,548,221
         294,817  Marsh & McLennan Companies, Inc.                    7,517,833
                                                                   ------------
                                                                     36,121,373
                                                                   ------------
LEISURE EQUIPMENT & PRODUCTS -- 2.1%
         305,600  RC2 Corp.(2)                                        8,462,064
                                                                   ------------
MACHINERY -- 1.5%
         355,864  Altra Holdings Inc.(2)                              5,932,253
                                                                   ------------
METALS & MINING -- 1.1%
          80,481  Compass Minerals International Inc.(1)              2,739,573
          34,441  Newmont Mining Corporation                          1,540,546
                                                                      4,280,119
                                                                   ------------

Shares                                                                    Value

MULTI-UTILITIES -- 4.8%
          44,856  Ameren Corp.                                      $ 2,354,940
          41,800  Consolidated Edison, Inc.                           1,935,340
         292,057  Puget Energy, Inc.                                  7,146,635
         126,107  Wisconsin Energy Corp.                              5,678,598
         108,300  XCEL Energy Inc.                                    2,332,782
                                                                   ------------
                                                                     19,448,295
                                                                   ------------
MULTILINE RETAIL -- 0.3%
          45,100  Family Dollar Stores, Inc.                          1,197,856
                                                                   ------------
OIL, GAS & CONSUMABLE FUELS -- 2.9%
          61,951  Apache Corp.                                        5,579,307
          69,484  Equitable Resources Inc.                            3,604,135
          68,654  St. Mary Land & Exploration Co.                     2,448,888
                                                                   ------------
                                                                     11,632,330
                                                                   ------------
PAPER & FOREST PRODUCTS -- 1.1%
          41,485  MeadWestvaco Corp.                                  1,225,052
          43,036  Weyerhaeuser Co.                                    3,111,503
                                                                   ------------
                                                                      4,336,555
                                                                   ------------
PERSONAL PRODUCTS -- 0.3%
          28,800  Estee Lauder Companies, Inc. (The) Cl A             1,222,848
                                                                   ------------
PHARMACEUTICALS -- 1.1%
          68,600  Bristol-Myers Squibb Co.                            1,977,052
          77,069  Watson Pharmaceuticals, Inc.(2)                     2,497,036
                                                                   ------------
                                                                      4,474,088
                                                                   ------------
REAL ESTATE INVESTMENT TRUSTS -- 0.8%
         246,668  Education Realty Trust, Inc.(1)                     3,330,018
                                                                   ------------
ROAD & RAIL -- 0.6%
         171,051  Heartland Express, Inc.(1)                          2,442,608
                                                                   ------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.3%
          84,400  Teradyne, Inc.(2)                                   1,164,720
                                                                   ------------
SOFTWARE -- 0.6%
          87,358  Synopsys, Inc.(2)                                   2,365,655
                                                                   ------------
SPECIALTY RETAIL -- 0.9%
         127,297  Lowe's Companies, Inc.                              3,566,862
                                                                   ------------
THRIFTS & MORTGAGE FINANCE -- 6.8%
         258,591  Freddie Mac                                        15,259,455
         373,986  MGIC Investment Corp.(1)                           12,083,488
                                                                   ------------
                                                                     27,342,943
                                                                   ------------
TOTAL COMMON STOCKS
 (Cost $390,046,937)                                                396,906,175
                                                                   ------------


------
8


Mid Cap Value

Principal Amount                                                     Value

Temporary Cash Investments -- 1.8%
            $7,400,000  FHLB Discount Notes, 4.00%, 10/1/07(3)
(Cost $7,400,000)                                                    $7,400,000
                                                                   ------------

Temporary Cash Investments - Securities Lending Collateral(4) -- 3.1%

Repurchase Agreement, Lehman Brothers, Inc., (collateralized
by various U.S. Government Agency obligations in a pooled
account at the lending agent), 5.15%, dated 9/28/07, due
10/1/07
(Delivery value $12,518,906)
(Cost $12,513,536)                                                   12,513,536
                                                                   ------------

Principal Amount                                                     Value

TOTAL INVESTMENT SECURITIES -- 103.2%
(Cost $409,960,473)                                                $416,819,711
                                                                   ------------

OTHER ASSETS AND LIABILITIES -- (3.2)%                             (12,803,894)
                                                                   ------------

TOTAL NET ASSETS -- 100.0%                                         $404,015,817
                                                                   ============

Forward Foreign Currency Exchange Contracts

                                                                  Unrealized
      Contracts to Sell        Settlement Date       Value       Gain (Loss)
     2,216,792  Euro for USD       10/31/07       $3,165,693      $(31,284)

   263,956,800  JPY for USD        10/31/07        2,308,592       (12,656)
                                                 ------------   -------------
                                                  $5,474,285      $(43,940)
                                                 ============   =============

(Value on Settlement Date $5,430,345)

Notes to Schedule of Investments

FHLB = Federal Home Loan Bank

JPY = Japanese Yen

ORD = Foreign Ordinary Share

USD = United States Dollar

(1) Security, or a portion thereof, was on loan as of September 30, 2007.

(2) Non-income producing.

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

(4) Investments represent purchases made by the lending agent with cash
collateral received through securities lending transactions.

See Notes to Financial Statements.


------
9


PERFORMANCE
Small Cap Value

Total Returns as of September 30, 2007
                                             Average Annual Returns
                                                            Since     Inception
                       6 months(1)  1 year    5 years     Inception      Date

INVESTOR CLASS            0.62%     11.13%     17.81%      14.80%      7/31/98

RUSSELL 2000
VALUE INDEX(2)           -4.10%      6.09%     18.70%      11.30%         --

Institutional
Class                     0.72%     11.27%     18.01%      15.90%      10/26/98

Advisor Class             0.40%     10.81%     17.49%      17.09%      12/31/99

C Class
 No sales charge*         0.00%      9.98%     16.66%      11.04%
 With sales
 charge*                 -1.00%      9.98%     16.66%      11.04%       6/1/01

* Sales charges include contingent deferred sales charges (CDSCs), as
applicable. C Class shares redeemed within 12 months of purchase are subject
to a maximum CDSC of 1.00%. Please see the Share Class Information page for
more about the applicable sales charges for each share class. The SEC requires
that mutual funds provide performance information net of maximum sales charges
in all cases where charges could be applied.

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

(2) Data provided by Lipper Inc. - A Reuters Company. ©2007 Reuters. All
rights reserved. Any copying, republication or redistribution of Lipper
content, including by caching, framing or similar means, is expressly
prohibited without the prior written consent of Lipper. Lipper shall not be
liable for any errors or delays in the content, or for any actions taken in
reliance thereon.

  The data contained herein has been obtained from company reports, financial
reporting services, periodicals and other resources believed to be reliable.
Although carefully verified, data on compilations is not guaranteed by Lipper
and may be incomplete. No offer or solicitations to buy or sell any of the
securities herein is being made by Lipper.

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-2021 or visit
americancentury.com. Historically, small company stocks have been more
volatile than the stocks of larger, more established companies. International
investing involves special risks, such as political instability and currency
fluctuations.

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


------
10


Small Cap Value

Growth of $10,000 Over Life of Class

$10,000 investment made July 31, 1998

One-Year Returns Over Life of Class
Periods ended September 30
1998* 1999 2000 2001 2002 2003 2004 2005 2006 2007

Investor Class -9.80% 13.25% 21.76% 27.06% -1.21% 25.63% 24.21% 20.19% 8.94% 11.13%

Russell 2000
Value Index -10.90% 5.83% 15.36% 5.61% -1.47% 31.66% 25.66% 17.75% 14.01% 6.09%

* From 7/31/98, the Investor Class's inception date. Not annualized.

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-2021 or visit
americancentury.com. Historically, small company stocks have been more
volatile than the stocks of larger, more established companies. International
investing involves special risks, such as political instability and currency
fluctuations.

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

------
11

PORTFOLIO COMMENTARY
Small Cap Value

Portfolio Managers: Ben Giele and Steve Roth

PERFORMANCE SUMMARY

Small Cap Value gained 0.62%* for the six months ended September 30, 2007. By
comparison, the median for Morningstar's Small Cap Value category** (whose
performance, like Small Cap Value's, reflects fund operating expenses)
returned -1.83%. The fund's benchmark, the Russell 2000 Value Index, declined
-4.10%. Its returns do not include operating expenses.

The portfolio's strong relative return was achieved in the challenging market
environment described in the Market Perspective on page 2. Overall, growth
stocks outperformed value across the capitalization spectrum and investors
favored stocks with lower dividend yields. In the volatility that
characterized the second half of the period, they gravitated toward
higher-quality names. Our emphasis on high-quality stocks and our
risk-controlled investment approach helped mitigate the impact of this market
volatility on Small Cap Value's absolute performance. In addition, during the
reporting period, the portfolio's small portion of international holdings also
contributed to results.

Since Small Cap Value's inception on July 31, 1998, the portfolio has produced
an average annualized return of 14.80%, outpacing the benchmark's return of
11.30% for that period (see performance information on pages 10 - 11).

UNDERWEIGHT IN FINANCIALS ADDED VALUE

The portfolio's underweight position in the financials sector was one of the
top contributors against the benchmark, and stock selection boosted results
further. Because of our valuation work, we had less exposure than the
benchmark to real estate investment trusts (REITs). REITS, which comprise
nearly 10% of the Russell 2000 Value Index, posted negative results while the
portfolio was rewarded for its much smaller average stake of around 4.5%.

Many financial firms came under pressure amid the fallout in the subprime
lending category and suffered further in the credit crisis that followed. We
successfully sidestepped broader damage in favor of names that suffered lesser
declines. However, one holding was a top detractor. Triad Guaranty, which
provides private mortgage insurance, lost its largest customer-- American Home
Mortgage Investment Corp. -- to bankruptcy in August. This is expected to have
a significant impact on the company's earnings in the months ahead.

Top Ten Holdings as of September 30, 2007
% of % of
net assets net assets
as of as of
9/30/07 3/31/07
Parametric Technology Corp. 2.5% 1.6%
Sybase, Inc. 2.5% 2.0%
iShares S&P SmallCap 600 Index Fund 1.8% --
iShares Russell 2000 Value Index Fund 1.7% 2.6%
Aspen Insurance, 5.625%, 12/31/49 (Conv. Pref.) 1.3% 0.8%
HCC Insurance Holdings, Inc. 1.2% 0.5%
Getty Realty Corp. 1.2% 1.1%
W&T Offshore Inc. 1.1% 0.9%
iShares Russell 2000 Index Fund 1.1% 1.7%
First Midwest Bancorp, Inc. 1.0% 1.0%

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

** The median returns for Morningstar's Small Cap Value category were 9.07%
and 17.51% for the one- and five-year periods ended September 30, 2007,
respectively. ©2007 Morningstar, Inc. All Rights Reserved. The information
contained herein: (1) is proprietary to Morningstar and/or its content
providers: (2) may not be copied or distributed; and (3) is not warranted to
be accurate, complete or timely. Neither Morningstar nor its content providers
are responsible for any damages or losses arising from any use of this
information.

------
12

Small Cap Value

INDUSTRIALS WORKED TO OUR ADVANTAGE

Small Cap Value's overweight position in the industrials sector enhanced
performance. Effective stock selection across several industries --
specifically, the machinery, aerospace and defense, and construction segments
-- also boosted our progress versus the benchmark. A key holding was Alliant
Techsystems Inc., a major producer of commercial and military ammunition.
Alliant has enjoyed solid growth and earnings and is expected to benefit from
new contracts and strategic acquisitions.

Another notable contributor was FTI Consulting, a global provider of
bankruptcy, restructuring, and forensic services. The company's stock nearly
doubled as FTI exceeded earnings expectations and announced a
4.83-million-share equity offering that could be used to fund an acquisition.

LESS WAS MORE IN CONSUMER DISCRETIONARY

In consumer discretionary, our underweight position added value as the sector
trailed all others in the benchmark. In particular, the portfolio was rewarded
for its lack of exposure to homebuilders, which declined significantly.

We also owned a top performer-- Rare Hospitality International, the owner of
two steak-specialty chains. The company's shares rose on news that it was
being acquired by Darden Restaurants, a casual dining company that owns and
operates restaurants such as Red Lobster and Olive Garden.

MATERIALS, TELECOMMUNICATIONS DETRACTED SLIGHTLY

There were only two areas of relative weakness during the period -- materials
and telecommunications services. Stock prices in both sectors have been
momentum-driven and did not meet our valuation criteria. As a result, they
have not merited sizeable exposure, which modestly detracted when they
outperformed for the benchmark.

STARTING POINT FOR NEXT REPORTING PERIOD

As bottom-up managers, we evaluate each company individually and build the
portfolio one stock at a time. In our search for companies that are
undervalued, we will structure exposure to market segments as warranted based
on the attractiveness of individual companies. As of September 30, 2007, the
portfolio was broadly diversified, with a modest overweight position in
industrials and an underweight position in financials relative to the
benchmark.

Top Five Industries* as of September 30, 2007
% of % of
net assets net assets
as of as of
9/30/07 3/31/07
Insurance 7.1% 6.5%
Commercial Banks 7.0% 7.9%
Software 6.6% 4.9%
Capital Markets 5.0% 3.9%
Real Estate Investment Trusts 4.5% 4.2%

* Excludes securities in the Diversified category. These securities represent
investments in diversified pools of underlying securities in multiple industry
categories.

Types of Investments in Portfolio
% of % of
net assets net assets
as of as of
9/30/07 3/31/07
Common Stocks 96.5% 96.5%
Convertible Preferred Stocks 1.3% 0.8%
Preferred Stocks 0.5% 0.1%
TOTAL EQUITY EXPOSURE 98.3% 97.4%
Temporary Cash Investments 1.2% 2.7%
Other Assets and Liabilities(1) 0.5% (0.1)%

(1) Includes securities lending collateral and other assets and liabilities.

------
13

SCHEDULE OF INVESTMENTS
Small Cap Value

SEPTEMBER 30, 2007 (UNAUDITED)

Shares Value

Common Stocks -- 96.5%

AEROSPACE & DEFENSE -- 2.3%
310,000 AeroVironment Inc.(1)(2) $ 7,133,100
70,000 Alliant Techsystems Inc.(1) 7,651,000
60,000 American Science and Engineering Inc.(2) 3,759,600
70,000 BE Aerospace, Inc.(1) 2,907,100
80,000 Curtiss-Wright Corp. 3,800,000
170,000 DRS Technologies, Inc. 9,370,400
130,000 Moog Inc. Cl A(1)(2) 5,712,200
35,000 Triumph Group, Inc. 2,859,850
--------------
43,193,250
--------------
AIRLINES -- 0.8%
335,000 Alaska Air Group, Inc.(1) 7,735,150
300,000 SkyWest, Inc. 7,551,000
--------------
15,286,150
--------------
AUTO COMPONENTS -- 0.6%
355,000 ArvinMeritor, Inc.(2) 5,971,100
130,000 Superior Industries International, Inc.(2) 2,819,700
90,000 Tenneco Automotive Inc.(1) 2,790,900
--------------
11,581,700
--------------
BUILDING PRODUCTS -- 0.6%
629,297 Griffon Corp.(1)(2) 9,502,385
85,000 Lennox International Inc. 2,873,000
--------------
12,375,385
--------------
CAPITAL MARKETS -- 5.0%
705,000 Apollo Investment Corp.(2) 14,664,000
705,000 Ares Capital Corp.(2) 11,470,350
555,000 Cowen Group Inc.(1)(2) 7,670,100
323,631 HFF Inc. Cl A(1) 3,841,500
515,000 Highland Distressed Opportunities Inc. 6,607,450
500,000 Knight Capital Group, Inc. Cl A(1) 5,980,000
81,215 Kohlberg Capital Corp.(2) 1,223,098
75,000 Lazard Ltd. Cl A 3,180,000
615,000 MCG Capital Corp.(2) 8,849,850
370,000 MVC Capital Inc.(2) 6,856,100
500,000 Patriot Capital Funding, Inc.(2) 6,685,000
305,000 PennantPark Investment Corp. 4,087,000
425,000 TradeStation Group, Inc.(1)(2) 4,959,750
375,000 Waddell & Reed Financial Inc. 10,136,250
--------------
96,210,448
--------------

Shares Value

CHEMICALS -- 2.5%
65,000 Arch Chemicals, Inc. $ 3,047,200
40,000 CF Industries Holdings, Inc. 3,036,400
100,000 Cytec Industries Inc. 6,839,000
145,000 Ferro Corp. 2,897,100
120,000 H.B. Fuller Co. 3,561,600
270,000 Hercules Inc. 5,675,400
395,000 Innophos Holdings, Inc. 6,019,800
100,000 Minerals Technologies Inc. 6,700,000
125,000 Olin Corp. 2,797,500
135,000 Sensient Technologies Corp. 3,897,450
235,000 Spartech Corp. 4,009,100
--------------
48,480,550
--------------
COMMERCIAL BANKS -- 7.0%
330,000 Central Pacific Financial Corp.(2) 9,636,000
160,000 Chemical Financial Corp.(2) 3,880,000
55,000 City National Corp. 3,823,050
150,000 Cullen/Frost Bankers, Inc. 7,518,000
565,000 First Midwest Bancorp, Inc.(2) 19,300,399
195,000 FirstMerit Corp.(2) 3,853,200
1,205,000 Fulton Financial Corp.(2) 17,327,900
625,000 Hanmi Financial Corp.(2) 9,681,250
1 National City Corp. 25
375,000 Pacific Capital Bancorp(2) 9,862,500
760,000 South Financial Group Inc. (The) 17,282,400
850,000 Sterling Bancshares, Inc. 9,698,500
595,000 TCF Financial Corp. 15,577,100
175,000 Wilmington Trust Corporation 6,807,500
--------------
134,247,824
--------------
COMMERCIAL SERVICES & SUPPLIES -- 3.6%
605,000 ACCO Brands Corp.(1)(2) 13,576,200
555,000 American Ecology Corp.(2) 11,760,450
65,000 Clean Harbors Inc.(1) 2,893,800
95,000 FTI Consulting, Inc.(1)(2) 4,779,450
140,000 G&K Services Inc. Cl A(2) 5,628,000
110,000 Heidrick & Struggles International Inc.(1) 4,009,500
425,000 Herman Miller Inc. 11,534,500
295,000 Korn/Ferry International(1) 4,870,450
50,000 United Stationers Inc.(1) 2,776,000
120,000 Waste Connections, Inc.(1) 3,811,200
65,000 Watson Wyatt Worldwide, Inc. Cl A 2,921,100
--------------
68,560,650
--------------

------
14

Small Cap Value

Shares Value

COMMUNICATIONS EQUIPMENT -- 0.9%
265,000 Arris Group Inc.(1) $ 3,272,750
125,000 Avocent Corp.(1) 3,640,000
1,295,000 EFJ Inc.(1)(2)(3) 7,511,000
405,000 Packeteer Inc.(1)(2) 3,078,000
--------------
17,501,750
--------------
COMPUTERS & PERIPHERALS -- 1.4%
190,000 Electronics for Imaging, Inc.(1) 5,103,400
515,000 Emulex Corp.(1) 9,872,550
145,000 Imation Corp. 3,556,850
180,000 Neoware Inc.(1)(2) 2,919,600
440,000 Rackable Systems, Inc.(1)(2) 5,706,800
--------------
27,159,200
--------------
CONSTRUCTION & ENGINEERING -- 1.2%
95,000 Aecom Technology Corp.(1) 3,318,350
155,000 EMCOR Group Inc.(1) 4,860,800
125,000 Granite Construction Inc. 6,627,500
55,000 URS Corp.(1) 3,104,750
55,612 Washington Group International, Inc.(1) 4,883,290
--------------
22,794,690
--------------
CONSUMER FINANCE -- 0.5%
570,000 Advance America, Cash Advance Centers, Inc. 6,081,900
200,000 Nelnet Inc. Cl A(2) 3,648,000
--------------
9,729,900
--------------
CONTAINERS & PACKAGING -- 1.0%
100,000 AptarGroup, Inc. 3,787,000
525,000 Bemis Co., Inc. 15,282,750
--------------
19,069,750
--------------
DIVERSIFIED -- 4.6%
260,000 iShares Russell 2000 Index Fund(2) 20,839,000
420,000 iShares Russell 2000 Value Index Fund(2) 32,214,000
490,000 iShares S&P SmallCap 600 Index Fund(2) 34,167,700
--------------
87,220,700
--------------
DIVERSIFIED CONSUMER SERVICES -- 1.2%
1,195,000 Corinthian Colleges Inc.(1) 19,012,450
125,000 Regis Corp. 3,988,750
--------------
23,001,200
--------------
DIVERSIFIED FINANCIAL SERVICES -- 0.3%
490,000 Asset Acceptance Capital Corp.(2) 5,684,000
--------------

Shares Value

DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.4%
370,000 Iowa Telecommunications Services Inc. $ 7,344,500
--------------
ELECTRIC UTILITIES -- 2.3%
150,000 Cleco Corp. 3,790,500
385,000 Empire District Electric Co.(2) 8,697,150
435,000 Great Plains Energy Inc. 12,532,350
290,000 MGE Energy, Inc.(2) 9,697,600
110,000 Portland General Electric Co. 3,058,000
230,000 Westar Energy Inc. 5,648,800
--------------
43,424,400
--------------
ELECTRICAL EQUIPMENT -- 1.8%
75,000 Acuity Brands Inc. 3,786,000
60,000 Belden Inc. 2,814,600
40,000 General Cable Corp.(1) 2,684,800
120,000 Genlyte Group Inc.(1) 7,711,200
50,000 Hubbell Inc. Cl B 2,856,000
135,000 LSI Industries Inc. 2,770,200
120,000 Regal-Beloit Corp. 5,746,800
60,000 Smith (A.O.) Corp.(2) 2,632,800
80,000 Superior Essex Inc.(1)(2) 2,982,400
--------------
33,984,800
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS -- 2.7%
420,000 Benchmark Electronics Inc.(1)(2) 10,025,400
210,000 Coherent, Inc.(1) 6,736,800
135,000 Littelfuse, Inc.(1) 4,818,150
285,000 Plexus Corp.(1) 7,809,000
125,000 Rogers Corp.(1)(2) 5,148,750
140,000 Technitrol, Inc. 3,773,000
335,000 TTM Technologies, Inc.(1) 3,875,950
735,000 Vishay Intertechnology, Inc.(1) 9,577,050
--------------
51,764,100
--------------
ENERGY EQUIPMENT & SERVICES -- 2.0%
145,000 Global Industries Ltd.(1) 3,735,200
85,000 Helmerich & Payne, Inc. 2,790,550
280,000 Horizon Offshore, Inc.(1) 4,620,000
75,000 Hornbeck Offshore Services Inc.(1)(2) 2,752,500
280,000 Key Energy Services, Inc.(1) 4,760,000
135,000 Lufkin Industries Inc. 7,427,700
450,000 North American Energy Partners Inc.(1) 7,767,000
65,000 W-H Energy Services Inc.(1) 4,793,750
--------------
38,646,700
--------------

------
15

Small Cap Value

Shares Value

FOOD & STAPLES RETAILING -- 1.0%
120,000 BJ's Wholesale Club Inc.(1) $ 3,979,200
130,000 Casey's General Stores, Inc. 3,601,000
100,000 Performance Food Group Co.(1) 3,013,000
205,000 Weis Markets Inc.(2) 8,751,450
--------------
19,344,650
--------------
FOOD PRODUCTS -- 2.2%
450,000 B&G Foods, Inc. Cl A 5,760,000
80,000 Corn Products International Inc. 3,669,600
380,000 Del Monte Foods Co. 3,990,000
160,000 Hain Celestial Group, Inc. (The)(1) 5,140,800
140,000 J&J Snack Foods Corp. 4,874,800
55,000 J.M. Smucker Co. (The) 2,938,100
130,000 Lancaster Colony Corp. 4,962,100
115,000 Pilgrim's Pride Corp.(2) 3,993,950
70,000 Ralcorp Holdings, Inc.(1) 3,907,400
110,000 Reddy Ice Holdings Inc. 2,900,700
--------------
42,137,450
--------------
GAS UTILITIES -- 0.8%
270,000 Atmos Energy Corp. 7,646,400
225,000 WGL Holdings Inc. 7,625,250
--------------
15,271,650
--------------
HEALTH CARE EQUIPMENT & SUPPLIES -- 2.0%
255,000 Cutera, Inc.(1)(2) 6,683,550
112,061 Datascope Corp. 3,788,783
100,000 ICU Medical Inc.(1)(2) 3,875,000
60,000 Orthofix International N.V.(1)(2) 2,938,200
145,000 Steris Corp. 3,962,850
140,000 Vital Signs Inc.(2) 7,299,600
342,754 Young Innovations, Inc. 9,806,192
--------------
38,354,175
--------------
HEALTH CARE PROVIDERS & SERVICES -- 3.5%
510,000 Amsurg Corp.(1) 11,765,700
650,000 Assisted Living Concepts, Inc. Cl A(1)(2) 5,941,000
185,000 Community Health Systems Inc.(1) 5,816,400
200,000 LCA-Vision Inc.(2) 5,878,000
130,000 LifePoint Hospitals Inc.(1) 3,901,300
75,000 Magellan Health Services Inc.(1) 3,043,500
165,000 Nighthawk Radiology Holdings Inc.(1) 4,044,150
--------------
1,812,121 Odyssey HealthCare, Inc.(1)(3) 17,414,483
--------------

Shares Value

150,000 Owens & Minor Inc.(2) $ 5,713,500
260,021 Skilled Healthcare Group Inc. Cl A(1) 4,095,331
--------------
67,613,364
--------------
HEALTH CARE TECHNOLOGY -- 0.3%
260,000 Vital Images, Inc.(1)(2) 5,075,200
--------------
HOTELS, RESTAURANTS & LEISURE -- 2.9%
385,000 California Pizza Kitchen, Inc.(1) 6,764,450
528,189 CEC Entertainment Inc.(1) 14,192,438
165,000 International Speedway Corp. 7,566,900
155,000 Panera Bread Co. Cl A(1)(2) 6,324,000
180,000 Red Robin Gourmet Burgers Inc.(1) 7,722,000
365,000 Ruby Tuesday Inc. 6,694,100
150,744 Speedway Motorsports Inc. 5,577,528
--------------
54,841,416
--------------
HOUSEHOLD DURABLES -- 1.3%
145,000 American Greetings Corporation Cl A 3,828,000
340,000 Ethan Allen Interiors Inc.(2) 11,114,600
295,000 Furniture Brands International, Inc.(2) 2,991,300
70,000 MDC Holdings Inc. 2,865,800
125,000 Tupperware Brands Corp. 3,936,250
--------------
24,735,950
--------------
HOUSEHOLD PRODUCTS -- 0.2%
395,000 Central Garden & Pet Co.(1)(2) 3,515,500
--------------
INSURANCE -- 5.8%
665,000 American Equity Investment Life Holding
Co.(2) 7,082,250
635,000 Aspen Insurance Holdings Ltd. 17,722,850
95,000 Delphi Financial Group, Inc. Cl A 3,839,900
220,000 Endurance Specialty Holdings Ltd. 9,141,000
65,000 Hanover Insurance Group Inc. 2,872,350
830,000 HCC Insurance Holdings, Inc. 23,771,200
90,000 Hilb Rogal & Hobbs Co. 3,899,700
240,000 IPC Holdings, Ltd. 6,924,000
300,000 National Atlantic Holdings Corp. Cl A(1) 2,778,000
145,000 National Financial Partners Corp. 7,682,100
226,282 Phoenix Companies Inc. 3,192,839
350,000 Platinum Underwriters Holdings Ltd. 12,586,000
75,000 ProAssurance Corp.(1) 4,040,250
140,000 United Fire & Casualty Co.(2) 5,472,600
--------------
111,005,039
--------------

------
16

Small Cap Value

Shares Value

IT SERVICES -- 1.3%
273,786 Gevity HR, Inc.(2) $ 2,806,307
265,000 MoneyGram International Inc. 5,986,350
255,000 MPS Group, Inc.(1) 2,843,250
795,000 Perot Systems Corp. Cl A(1) 13,443,450
--------------
25,079,357
--------------
LEISURE EQUIPMENT & PRODUCTS -- 0.3%
335,000 Nautilus Inc.(2) 2,669,950
95,000 RC2 Corp.(1) 2,630,550
--------------
5,300,500
--------------
LIFE SCIENCES TOOLS & SERVICES -- 0.4%
35,000 Bio-Rad Laboratories, Inc. Cl A(1) 3,167,500
130,000 PRA International(1)(2) 3,822,000
--------------
6,989,500
--------------
MACHINERY -- 3.5%
396,140 A.S.V., Inc.(1)(2) 5,557,844
145,000 Albany International Corp. 5,436,050
285,000 Altra Holdings Inc.(1) 4,750,950
515,000 Commercial Vehicle Group Inc.(1)(2) 6,607,450
85,000 Crane Co. 4,077,450
110,000 Kaydon Corp.(2) 5,718,900
90,000 Kennametal Inc. 7,558,200
255,000 Mueller Industries Inc. 9,215,700
275,000 Mueller Water Products, Inc. Series B(1) 3,025,000
210,000 Pentair, Inc. 6,967,800
205,000 Timken Co. 7,615,750
--------------
66,531,094
--------------
MARINE -- 0.1%
50,000 Alexander & Baldwin, Inc. 2,506,500
--------------
MEDIA -- 1.2%
275,000 Belo Corp. Series A 4,774,000
300,000 Entravision Communications Corp. Cl A(1) 2,766,000
105,000 Hearst-Argyle Television, Inc. 2,725,800
1,350,000 Journal Communications Inc. 12,798,000
--------------
23,063,800
--------------
METALS & MINING -- 2.2%
60,000 Century Aluminum Co.(1) 3,159,000
210,000 Claymont Steel Holdings Inc.(1) 4,252,500
45,000 Cleveland-Cliffs Inc. 3,958,650
70,000 Haynes International Inc.(1) 5,975,900
85,000 Metal Management Inc. 4,607,000
485,000 NN, Inc. 4,757,850

Shares Value

70,000 Quanex Corp. $ 3,288,600
50,000 RTI International Metals, Inc.(1) 3,963,000
140,000 Ryerson Inc.(2) 4,723,600
50,000 Schnitzer Steel Industries, Inc. Cl A(2) 3,664,500
--------------
42,350,600
MULTI-UTILITIES -- 0.6%
470,000 Puget Energy, Inc. 11,500,900
--------------
MULTILINE RETAIL -- 0.4%
365,000 Fred's, Inc. 3,843,450
465,000 Tuesday Morning Corp.(2) 4,180,350
--------------
8,023,800
--------------
OIL, GAS & CONSUMABLE FUELS -- 3.1%
200,000 Alpha Natural Resources, Inc.(1)(2) 4,646,000
75,000 Cimarex Energy Co. 2,793,750
270,000 Double Hull Tankers Inc.(2) 4,020,300
120,000 Encore Acquisition Co.(1) 3,798,000
90,000 Forest Oil Corp.(1)(2) 3,873,600
180,000 Helix Energy Solutions Group, Inc.(1) 7,642,800
320,000 St. Mary Land & Exploration Co. 11,414,400
870,000 W&T Offshore Inc.(2) 21,210,600
--------------
59,399,450
--------------
PAPER & FOREST PRODUCTS -- 0.4%
195,000 Glatfelter (P. H.) Co. 2,893,800
120,000 Neenah Paper Inc.(2) 3,970,800
--------------
6,864,600
--------------
PHARMACEUTICALS -- 0.7%
225,000 Alpharma Inc. Cl A(2) 4,806,000
215,000 Par Pharmaceutical Companies Inc.(1) 3,990,400
170,000 Perrigo Co. 3,629,500
--------------
12,425,900
--------------
REAL ESTATE INVESTMENT TRUSTS -- 4.0%
160,000 Alesco Financial Inc.(2) 787,200
290,000 Annaly Capital Management Inc. 4,619,700
555,000 Education Realty Trust, Inc. 7,492,500
210,000 Equity Inns Inc. 4,741,800
855,000 Getty Realty Corp.(2) 23,256,000
225,000 Healthcare Realty Trust Inc. 5,998,500
525,000 Lexington Realty Trust(2) 10,505,250
950,000 MFA Mortgage Investments, Inc. 7,619,000

------
17

Small Cap Value

Shares Value

160,000 National Retail Properties, Inc.(2) $ 3,900,800
140,000 Realty Income Corp.(2) 3,913,000
145,000 Sunstone Hotel Investors, Inc.(2) 3,717,800
--------------
76,551,550
--------------
ROAD & RAIL -- 1.0%
140,000 Arkansas Best Corp.(2) 4,572,400
200,000 Heartland Express, Inc.(2) 2,856,000
650,000 Werner Enterprises Inc.(2) 11,147,500
--------------
18,575,900
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.1%
90,000 Cabot Microelectronics Corp.(1)(2) 3,847,500
202,588 Cohu, Inc. 3,798,525
690,000 Mattson Technology Inc.(1)(2) 5,968,500
355,000 MKS Instruments, Inc.(1) 6,752,100
420,000 Rudolph Technologies Inc.(1) 5,808,600
495,000 Veeco Instruments Inc.(1)(2) 9,593,100
190,000 Verigy Ltd.(1) 4,694,900
--------------
40,463,225
--------------
SOFTWARE -- 6.6%
200,000 Aspen Technology, Inc.(1) 2,864,000
500,000 Compuware Corp.(1) 4,010,000
205,000 Fair Isaac Corp.(2) 7,402,550
150,000 Jack Henry & Associates Inc. 3,879,000
2,725,000 Parametric Technology Corp.(1) 47,469,500
2,050,000 Sybase, Inc.(1) 47,416,500
1,555,000 Ulticom, Inc.(1) 12,595,500
--------------
125,637,050
--------------
SPECIALTY RETAIL -- 2.8%
215,000 Barnes & Noble Inc. 7,580,900
130,000 Brown Shoe Company, Inc. 2,522,000
180,000 Cato Corp. (The) Cl A(2) 3,679,200
315,000 Charming Shoppes, Inc.(1)(2) 2,646,000
165,000 Group 1 Automotive, Inc.(2) 5,539,050
970,000 Hot Topic, Inc.(1) 7,236,200
275,000 Penske Automotive Group, Inc.(2) 5,566,000
610,000 Pier 1 Imports, Inc.(1)(2) 2,885,300
200,000 Rent-A-Center Inc.(1) 3,626,000
150,000 Stage Stores Inc.(2) 2,734,500
310,000 Talbots Inc.(2) 5,580,000
160,000 Zale Corp.(1)(2) 3,702,400
--------------
53,297,550
--------------

Shares Value

TEXTILES, APPAREL & LUXURY GOODS -- 2.0%
195,000 Carter's, Inc.(1) $ 3,890,250
695,000 Kenneth Cole Productions, Inc. Cl A(2) 13,462,150
155,000 Oxford Industries, Inc. 5,598,600
85,000 Warnaco Group Inc. (The)(1) 3,320,950
460,000 Wolverine World Wide, Inc. 12,604,000
--------------
38,875,950
--------------
THRIFTS & MORTGAGE FINANCE -- 0.6%
210,000 First Niagara Financial Group Inc. 2,971,500
220,000 Triad Guaranty Inc.(1)(2) 4,173,400
145,000 Washington Federal, Inc. 3,807,700
--------------
10,952,600
--------------
TOBACCO -- 0.3%
115,000 Universal Corp. 5,629,250
--------------
TRADING COMPANIES & DISTRIBUTORS -- 0.2%
120,000 Applied Industrial Technologies Inc. 3,699,600
--------------
TOTAL COMMON STOCKS
(Cost $1,740,023,945) 1,842,874,717
--------------

Convertible Preferred Stocks -- 1.3%

INSURANCE -- 1.3%
450,000 Aspen Insurance, 5.625%, 12/31/49
(Cost $22,771,370) 24,345,000
--------------
Preferred Stocks -- 0.5%

REAL ESTATE INVESTMENT TRUSTS -- 0.5%
Ashford Hospitality Trust, Inc., 8.45%,
215,000 7/18/12(2) 5,009,500
National Retail Properties Inc., 7.375%,
200,000 10/12/11(2) 4,806,260
--------------
TOTAL PREFERRED STOCKS
(Cost $10,265,980) 9,815,760
--------------

Temporary Cash Investments -- 1.2%

Repurchase Agreement, Morgan Stanley Group, Inc.,
(collateralized by various U.S. Treasury obligations,
5.25%-8.75%, 8/15/20-11/15/28, valued at $23,687,013), in a
joint trading account at 3.90%, dated 9/28/07, due 10/1/07
(Delivery value $23,107,508)
(Cost $23,100,000) 23,100,000
--------------

------
18

Small Cap Value

Shares Value

Temporary Cash Investments - Securities Lending Collateral(4) -- 15.7%

Repurchase Agreement, Citigroup Global Markets Inc.,
(collateralized by various U.S. Government Agency obligations in
a pooled account at the lending agent), 5.00%, dated 9/28/07,
due 10/1/07 (Delivery value $170,070,833) $ 170,000,000

Repurchase Agreement, Lehman Brothers, Inc., (collateralized by
various U.S. Government Agency obligations in a pooled account
at the lending agent), 5.15%, dated 9/28/07, due 10/1/07
(Delivery value $128,969,720) 128,914,394
--------------
TOTAL TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL
(Cost $298,914,394) 298,914,394
--------------
TOTAL INVESTMENT SECURITIES -- 115.2%
(Cost $2,095,075,689) 2,199,049,871
--------------
OTHER ASSETS AND LIABILITIES -- (15.2)% (290,898,811)
--------------
TOTAL NET ASSETS -- 100.0% $1,908,151,060
==============

Notes to Schedule of Investments

(1) Non-income producing.

(2) Security, or a portion thereof, was on loan as of September 30, 2007.

(3) Affiliated Company: the fund's holding represents ownership of 5% or more
of the voting securities of the company; therefore, the company is affiliated
as defined in the Investment Company Act of 1940.

(4) Investments represent purchases made by the lending agent with cash
collateral received through securities lending transactions.

See Notes to Financial Statements.

------
19

SHAREHOLDER FEE EXAMPLES (UNAUDITED)

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

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

ACTUAL EXPENSES

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

If you hold Investor Class shares of any American Century fund, or
Institutional Class shares of the American Century Diversified Bond Fund, in
an American Century account (i.e., not a financial intermediary or retirement
plan account), American Century may charge you a $12.50 semiannual account
maintenance fee if the value of those shares is less than $10,000. We will
redeem shares automatically in one of your accounts to pay the $12.50 fee. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. PERSONAL ACCOUNTS
include individual accounts, joint accounts, UGMA/UTMA accounts, personal
trusts, Coverdell Education Savings Accounts and 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 Brokerage accounts, you are currently not subject to this
fee. We will not charge the fee as long as you choose to manage your accounts
exclusively online. If you are subject to the Account Maintenance Fee, your
account value could be reduced by the fee amount.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

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

------
20

Expenses Paid
Beginning Ending During Period*
Account Account Value 4/1/07 - Annualized
Value 4/1/07 9/30/07 9/30/07 Expense Ratio*
Mid Cap Value

ACTUAL

Investor Class $1,000 $1,026.60 $5.07 1.00%

Institutional
Class $1,000 $1,027.60 $4.06 0.80%

Advisor Class $1,000 $1,025.30 $6.33 1.25%

R Class $1,000 $1,024.80 $7.59 1.50%

HYPOTHETICAL

Investor Class $1,000 $1,020.00 $5.05 1.00%

Institutional
Class $1,000 $1,021.00 $4.04 0.80%

Advisor Class $1,000 $1,018.75 $6.31 1.25%

R Class $1,000 $1,017.50 $7.57 1.50%

Small Cap Value

ACTUAL

Investor Class $1,000 $1,006.20 $6.32 1.26%

Institutional
Class $1,000 $1,007.20 $5.32 1.06%

Advisor Class $1,000 $1,004.00 $7.57 1.51%

C Class $1,000 $1,000.00 $11.30 2.26%

HYPOTHETICAL

Investor Class $1,000 $1,018.70 $6.36 1.26%

Institutional
Class $1,000 $1,019.70 $5.35 1.06%

Advisor Class $1,000 $1,017.45 $7.62 1.51%

C Class $1,000 $1,013.70 $11.38 2.26%

* Expenses are equal to the class's annualized expense ratio listed in the
table above, multiplied by the average account value over the period,
multiplied by 183, the number of days in the most recent fiscal half-year,
divided by 366, to reflect the one-half year period.

------
21

STATEMENT OF ASSETS AND LIABILITIES

SEPTEMBER 30, 2007 (UNAUDITED)
Small Cap
Mid Cap Value Value
ASSETS

Investment securities -- unaffiliated, at value
(cost of $397,446,937 and $1,766,550,399,
respectively) -- including $12,046,231 and
$288,193,163 of securities on loan, respectively $404,306,175 $1,875,209,994

Investment securities -- affiliated, at value
(cost of $- and $29,610,896, respectively) --
including $- and $236,060 of securities on loan,
respectively -- 24,925,483

Investments made with cash collateral received
for securities on loan, at value (cost of
$12,513,536 and $298,914,394, respectively) 12,513,536 298,914,394
------------ --------------
Total investment securities, at value (cost of
$409,960,473 and $2,095,075,689, respectively) 416,819,711 2,199,049,871

Receivable for investments sold 11,915,949 35,457,705

Dividends and interest receivable 600,638 3,220,237
------------ --------------
429,336,298 2,237,727,813
------------ --------------

LIABILITIES

Disbursements in excess of demand deposit cash 39,296 1,135,164

Payable for collateral received for securities on
loan 12,513,536 298,914,394

Payable for investments purchased 12,390,648 27,545,234

Payable for forward foreign currency exchange
contracts 43,940 --

Accrued management fees 324,727 1,890,259

Distribution fees payable 6,924 82,941

Service fees (and distribution fees R Class)
payable 1,410 8,761
------------ --------------
25,320,481 329,576,753
------------ --------------

NET ASSETS $404,015,817 $1,908,151,060
============ ==============

See Notes to Financial Statements.

------
22

SEPTEMBER 30, 2007 (UNAUDITED)
Small Cap
Mid Cap Value Value
NET ASSETS CONSIST OF:

Capital (par value and paid-in surplus) $365,379,223 $1,537,961,690

Undistributed net investment income 541,539 2,453,626

Undistributed net realized gain on investment and
foreign currency transactions 31,275,032 263,761,562

Net unrealized appreciation on investments and
translation of assets and liabilities in foreign
currencies 6,820,023 103,974,182
------------ --------------
$404,015,817 $1,908,151,060
============ ==============

INVESTOR CLASS, $0.01 PAR VALUE

Net assets $349,948,285 $1,096,911,584

Shares outstanding 25,716,447 109,376,749

Net asset value per share $13.61 $10.03

INSTITUTIONAL CLASS, $0.01 PAR VALUE

Net assets $17,776,671 $414,671,754

Shares outstanding 1,306,157 41,253,951

Net asset value per share $13.61 $10.05

ADVISOR CLASS, $0.01 PAR VALUE

Net assets $34,462,196 $394,133,806

Shares outstanding 2,532,410 39,367,250

Net asset value per share $13.61 $10.01

C CLASS, $0.01 PAR VALUE

Net assets N/A $2,433,916

Shares outstanding N/A 253,712

Net asset value per share N/A $9.59

R CLASS, $0.01 PAR VALUE

Net assets $1,828,665 N/A

Shares outstanding 134,395 N/A

Net asset value per share $13.61 N/A

See Notes to Financial Statements.

------
23

STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED)
Small Cap
Mid Cap Value Value
INVESTMENT INCOME (LOSS)

INCOME:

Dividends (including $- and $336,000,
respectively, from affiliates and net of foreign
taxes withheld of $4,343 and $-, respectively) $3,917,921 $ 19,303,372

Interest 276,375 1,370,492

Securities lending 30,426 679,438
------------ -------------
4,224,722 21,353,302
------------ -------------

EXPENSES:

Management fees 1,898,280 12,123,260

Distribution fees:

Advisor Class 29,510 449,084

C Class -- 12,391

Service fees:

Advisor Class 29,510 449,084

C Class -- 4,130

Distribution and service fees:

Advisor Class 7,607 89,483

R Class 3,371 --

Directors' fees and expenses 4,675 32,029

Other expenses 4,337 2,789
------------ -------------
1,977,290 13,162,250
------------ -------------

NET INVESTMENT INCOME (LOSS) 2,247,432 8,191,052
------------ -------------

REALIZED AND UNREALIZED GAIN (LOSS)

NET REALIZED GAIN (LOSS) ON:

Investment transactions (including $- and
$2,668,197 from affiliates, respectively) 16,724,934 165,952,119

Foreign currency transactions (317,283) --
------------ -------------
16,407,651 165,952,119
------------ -------------

CHANGE IN NET UNREALIZED APPRECIATION
(DEPRECIATION) ON:

Investments (11,205,592) (158,208,263)

Translation of assets and liabilities in foreign
currencies (17,287) --
------------ -------------
(11,222,879) (158,208,263)
------------ -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) 5,184,772 7,743,856
------------ -------------

NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $7,432,204 $ 15,934,908
============ =============
See Notes to Financial Statements.

------
24

STATEMENT OF CHANGES IN NET ASSETS

SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED) AND YEAR ENDED MARCH 31, 2007
Mid Cap Value Small Cap Value
Increase
(Decrease) in Net
Assets Sept. 30, 2007 March 31, 2007 Sept. 30, 2007 March 31, 2007

OPERATIONS

Net investment
income (loss) $2,247,432 $3,185,670 $8,191,052 $11,833,810

Net realized gain
(loss) 16,407,651 24,275,844 165,952,119 269,066,459

Change in net
unrealized
appreciation
(depreciation) (11,222,879) 12,571,948 (158,208,263) (96,758,855)
------------ ------------ -------------- --------------
Net increase
(decrease) in net
assets resulting
from operations 7,432,204 40,033,462 15,934,908 184,141,414
------------ ------------ -------------- --------------

DISTRIBUTIONS TO
SHAREHOLDERS

From net
investment
income:

Investor
Class (1,843,819) (2,544,581) (4,942,464) (5,506,596)

Institutional
Class (124,273) (220,317) (2,245,921) (2,633,023)

Advisor Class (132,206) (116,401) (1,231,894) (1,044,209)

R Class (4,758) (682) -- --

From net realized
gains:

Investor
Class -- (12,038,352) -- (154,884,953)

Institutional
Class -- (747,114) -- (54,066,434)

Advisor Class -- (707,570) -- (53,966,232)

C Class -- -- -- (456,240)

R Class -- (4,612) -- --
------------ ------------ -------------- --------------
Decrease in net
assets from
distributions (2,105,056) (16,379,629) (8,420,279) (272,557,687)
------------ ------------ -------------- --------------

CAPITAL SHARE
TRANSACTIONS

Net increase
(decrease) in net
assets from
capital share
transactions 54,190,746 186,868,948 (241,554,134) (53,422,340)
------------ ------------ -------------- --------------

NET INCREASE
(DECREASE) IN NET
ASSETS 59,517,894 210,522,781 (234,039,505) (141,838,613)

NET ASSETS

Beginning of
period 344,497,923 133,975,142 2,142,190,565 2,284,029,178
------------ ------------ -------------- --------------
End of period $404,015,817 $344,497,923 $1,908,151,060 $2,142,190,565
============ ============ ============== ==============

Undistributed net
investment income $541,539 $399,163 $2,453,626 $2,682,853
============ ============ ============== ==============

See Notes to Financial Statements.

------
25

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2007 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION -- American Century Capital Portfolios, Inc. (the corporation) is
registered under the Investment Company Act of 1940 (the 1940 Act) as an
open-end management investment company. Mid Cap Value Fund (Mid Cap Value) and
Small Cap Value Fund (Small Cap Value) (collectively, the funds) are two funds
in a series issued by the corporation. The funds are diversified under the
1940 Act. The funds' investment objective is long-term capital growth. The
production of income is a secondary objective. Mid Cap Value seeks to achieve
its investment objective by investing in stocks of mid-sized market
capitalization companies that management believes to be undervalued at the
time of purchase. Small Cap Value seeks to achieve its investment objective by
investing in stocks of smaller market capitalization companies that management
believes to be undervalued at the time of purchase. The following is a summary
of the funds' significant accounting policies.

MULTIPLE CLASS -- Mid Cap Value is authorized to issue the Investor Class, the
Institutional Class, the Advisor Class, and the R Class. Small Cap Value is
authorized to issue the Investor Class, the Institutional Class, the Advisor
Class, and the C Class. The C Class may be subject to a contingent deferred
sales charge. The share classes differ principally in their respective sales
charges and distribution and shareholder servicing expenses and arrangements.
All shares of each fund represent an equal pro rata interest in the net assets
of the class to which such shares belong, and have identical voting, dividend,
liquidation and other rights and the same terms and conditions, except for
class specific expenses and exclusive rights to vote on matters affecting only
individual classes. Income, non-class specific expenses, and realized and
unrealized capital gains and losses of the funds are allocated to each class
of shares based on their relative net assets.

SECURITY VALUATIONS -- Securities traded primarily on a principal securities
exchange are valued at the last reported sales price, or at the mean of the
latest bid and asked prices where no last sales price is available. Depending
on local convention or regulation, securities traded over-the-counter are
valued at the mean of the latest bid and asked prices, the last sales price,
or the official close price. Debt securities not traded on a principal
securities exchange are valued through a commercial pricing service or at the
mean of the most recent bid and asked prices. Discount notes may be valued
through a commercial pricing service or at amortized cost, which approximates
fair value. Securities traded on foreign securities exchanges and
over-the-counter markets are normally completed before the close of business
on days that the New York Stock Exchange (the Exchange) is open and may also
take place on days when the Exchange is not open. If an event occurs after the
value of a security was established but before the net asset value per share
was determined that was likely to materially change the net asset value, that
security would be valued as determined in accordance with procedures adopted
by the Board of Directors. If the funds determine that the market price of a
portfolio security is not readily available, or that the valuation methods
mentioned above do not reflect the security's fair value, such security is
valued as determined by, or in accordance with procedures adopted by, the
Board of Directors or its designee if such determination would materially
impact a fund's net asset value. Certain other circumstances may cause the
funds to use alternative procedures to value a security such as: a security
has been declared in default; trading in a security has been halted during the
trading day; or there is a foreign market holiday and no trading will commence.

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

INVESTMENT INCOME -- Dividend income less foreign taxes withheld, if any, is
recorded as of the ex-dividend date. Distributions received on securities that
represent a return of capital or capital gain are recorded as a reduction of
cost of investments and/or as a realized gain. The funds estimate the
components of distributions received that may be considered nontaxable
distributions or capital gain distributions for income tax purposes. Interest
income is recorded on the accrual basis and includes accretion of discounts
and amortization of premiums.

SECURITIES ON LOAN -- The funds may lend portfolio securities through their
lending agent to certain approved borrowers in order to earn additional
income. The funds continue to recognize any gain or loss in the market price
of the securities loaned and record any interest earned or dividends declared.

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26

EXCHANGE TRADED FUNDS -- The funds may invest in exchange traded funds (ETFs).
ETFs are a type of index fund bought and sold on a securities exchange. An ETF
trades like common stock and represents a fixed portfolio of securities
designed to track the performance and dividend yield of a particular domestic
or foreign market index. A fund may purchase an ETF to temporarily gain
exposure to a portion of the U.S. or a foreign market while awaiting purchase
of underlying securities. The risks of owning an ETF generally reflect the
risks of owning the underlying securities they are designed to track, although
the lack of liquidity on an ETF could result in it being more volatile.
Additionally, ETFs have management fees, which increase their cost.

FOREIGN CURRENCY TRANSACTIONS -- All assets and liabilities initially
expressed in foreign currencies are translated into U.S. dollars at prevailing
exchange rates at period end. Purchases and sales of investment securities,
dividend and interest income, and certain expenses are translated at the rates
of exchange prevailing on the respective dates of such transactions. For
assets and liabilities, other than investments in securities, net realized and
unrealized gains and losses from foreign currency translations arise from
changes in currency exchange rates.

Net realized and unrealized foreign currency exchange gains or losses
occurring during the holding period of investment securities are a component
of realized gain (loss) on investment transactions and unrealized appreciation
(depreciation) on investments, respectively. Certain countries may impose
taxes on the contract amount of purchases and sales of foreign currency
contracts in their currency. The funds record the foreign tax expense, if any,
as a reduction to the net realized gain (loss) on foreign currency
transactions.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The funds may enter into
forward foreign currency exchange contracts to facilitate transactions of
securities denominated in a foreign currency or to hedge the funds' exposure
to foreign currency exchange rate fluctuations. The net U.S. dollar value of
foreign currency underlying all contractual commitments held by the funds and
the resulting unrealized appreciation or depreciation are determined daily
using prevailing exchange rates. The funds bear the risk of an unfavorable
change in the foreign currency exchange rate underlying the forward contract.
Additionally, losses may arise if the counterparties do not perform under the
contract terms.

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

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

INCOME TAX STATUS -- It is each fund's policy to distribute substantially all
net investment income and net realized gains to shareholders and to otherwise
qualify as a regulated investment company under provisions of the Internal
Revenue Code. The funds are no longer subject to examination by tax
authorities for years prior to 2004. At this time, management has not
identified any uncertain tax positions that would materially impact the
financial statements. Accordingly, no provision has been made for federal or
state income taxes. Interest and penalties associated with any federal or
state income tax obligations, if any, are recorded as interest expense.

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

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27

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

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

2. FEES AND TRANSACTIONS WITH RELATED PARTIES

On July 27, 2007, the Advisor Class shareholders of Mid Cap Value and Small
Cap Value approved a change to the class's fee structure. The change was
approved by the Board of Directors on November 29, 2006 and March 7, 2007.
Effective September 4, 2007, the fee structure change resulted in an increase
of 0.25% in the unified management fee and a simultaneous decrease of 0.25% in
the total distribution and service fee, resulting in no change to the total
operating expense ratio of the class.

MANAGEMENT FEES -- The corporation has entered into a Management Agreement
with ACIM, under which ACIM provides the funds with investment advisory and
management services in exchange for a single, unified management fee (the fee)
per class. The Agreement provides that all expenses of the funds, except
brokerage commissions, taxes, interest, fees and expenses of those directors
who are not considered "interested persons" as defined in the 1940 Act
(including counsel fees) and extraordinary expenses, will be paid by ACIM. The
fee is computed and accrued daily based on the daily net assets of each
specific class of shares of each fund and paid monthly in arrears. For funds
with a stepped fee schedule, the rate of the fee is determined by applying a
fee rate calculation formula. This formula takes into account all of the
investment advisor's assets under management in each fund's investment
strategy (strategy assets) to calculate the appropriate fee rate for each
fund. The strategy assets include each fund's assets and the assets of other
clients of the investment advisor that are not in the American Century family
of funds, but that have the same investment team and investment strategy. The
annual management fee schedule for Mid Cap Value is 1.00%, 0.80%, 1.00% and
1.00% for the Investor Class, Institutional Class, Advisor Class and R Class,
respectively. Prior to September 4, 2007, the annual management fee schedule
for Mid Cap Value was 0.75% for the Advisor Class. The annual management fee
schedule for Small Cap Value ranges from 1.00% to 1.25% for the Investor
Class, Advisor Class and C Class. The Institutional Class is 0.20% less at
each point within the range for Small Cap Value. Prior to September 4, 2007,
the Advisor Class was 0.25% less at each point within the range for Small Cap
Value.

The effective annual management fee for each class of the funds for the six
months ended September 30, 2007, was as follows:

Mid Cap Value Small Cap Value
Investor 1.00% 1.26%
Institutional 0.80% 1.06%
Advisor 0.79% 1.05%
C N/A 1.26%
R 1.00% N/A

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28

DISTRIBUTION AND SERVICE FEES -- The Board of Directors has adopted a separate
Master Distribution and Individual Shareholder Services Plan for each of the
Advisor Class, C Class and R Class (collectively the plans), pursuant to Rule
12b-1 of the 1940 Act. The plans provide that the Advisor Class will pay
American Century Investment Services, Inc. (ACIS) an annual distribution and
service fee of 0.25%. Prior to September 4, 2007, the Board of Directors had
adopted a Master Distribution and Shareholder Services Plan for the Advisor
Class which provided that the Advisor Class would pay ACIS an annual
distribution fee of 0.25% and service fee of 0.25%. The plans provide that the
C Class will pay ACIS an annual distribution fee of 0.75% and service fee of
0.25%. The plans provide that the R Class will pay ACIS an annual distribution
and service fee of 0.50%. The fees are computed and accrued daily based on
each class's daily net assets and paid monthly in arrears. The distribution
fee provides compensation for expenses incurred in connection with
distributing shares of the classes including, but not limited to, payments to
brokers, dealers, and financial institutions that have entered into sales
agreements with respect to shares of the funds. The service fee provides
compensation for shareholder and administrative services rendered by ACIS, its
affiliates or independent third party providers for Advisor Class shares and
for individual shareholder services rendered by broker/dealers or other
independent financial intermediaries for C Class and R Class shares. Fees
incurred under the plans during the six months ended September 30, 2007, are
detailed in the Statement of Operations.

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

The funds are eligible to invest in a money market fund for temporary
purposes, which is managed by J.P. Morgan Investment Management, Inc. (JPMIM).
JPMIM is a wholly owned subsidiary of JPMorgan Chase & Co. (JPM). JPM is an
equity investor in ACC. The funds have a bank line of credit agreement and
securities lending agreement with JPMorgan Chase Bank (JPMCB). JPMCB is a
custodian of the funds and a wholly owned subsidiary of JPM.

3. INVESTMENT TRANSACTIONS

Investment transactions, excluding short-term investments, for the six months
ended September 30, 2007, were as follows:

Mid Cap Value Small Cap Value
Purchases $462,792,636 $1,129,904,845
Proceeds from sales $405,530,869 $1,346,195,657

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29

4. CAPITAL SHARE TRANSACTIONS

Transactions in shares of the funds were as follows:

Six months ended Year ended
September 30, 2007 March 31, 2007
Shares Amount Shares Amount
Mid Cap Value

INVESTOR CLASS/SHARES
AUTHORIZED 75,000,000 30,000,000
=========== ===========
Sold 12,036,308 $167,108,072 15,718,995 $197,688,534

Issued in reinvestment
of distributions 109,512 1,479,441 795,812 10,187,220

Redeemed (9,066,565) (125,144,800) (3,406,883) (42,428,857)
----------- ------------- ----------- ------------
3,079,255 43,442,713 13,107,924 165,446,897
----------- ------------- ----------- ------------
INSTITUTIONAL
CLASS/SHARES AUTHORIZED 20,000,000 5,000,000
=========== ===========
Sold 337,645 4,658,383 949,141 12,083,371

Issued in reinvestment
of distributions 8,158 110,401 72,779 930,393
Redeemed (587,119) (7,882,327) (343,169) (4,404,834)
----------- ------------- ----------- ------------
(241,316) (3,113,543) 678,751 8,608,930
----------- ------------- ----------- ------------
ADVISOR CLASS/SHARES
AUTHORIZED 20,000,000 5,000,000
=========== ===========
Sold 1,119,054 15,498,910 1,059,278 13,673,755

Issued in reinvestment
of distributions 9,439 127,098 64,291 822,974

Redeemed (202,937) (2,768,655) (192,591) (2,464,200)
----------- ------------- ----------- ------------
925,556 12,857,353 930,978 12,032,529
----------- ------------- ----------- ------------
R CLASS/SHARES
AUTHORIZED 20,000,000 5,000,000
=========== ===========
Sold 107,693 1,485,936 65,138 856,761

Issued in reinvestment
of distributions 355 4,758 413 5,294

Redeemed (35,213) (486,471) (6,215) (81,463)
----------- ------------- ----------- ------------
72,835 1,004,223 59,336 780,592
----------- ------------- ----------- ------------
Net increase (decrease) 3,836,330 $54,190,746 14,776,989 $186,868,948
=========== ============= =========== ============

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30

Six months ended Year ended
September 30, 2007 March 31, 2007
Shares Amount Shares Amount

Small Cap Value

INVESTOR
CLASS/SHARES
AUTHORIZED 500,000,000 300,000,000
============ ============
Sold 6,498,002 $66,343,904 17,671,058 $178,799,480

Issued in
reinvestment of
distributions 475,485 4,806,081 16,039,908 156,122,757

Redeemed (23,585,489) (239,851,944) (40,692,359) (411,004,195)
------------ -------------- ------------ -------------
(16,612,002) (168,701,959) (6,981,393) (76,081,958)
------------ -------------- ------------ -------------
INSTITUTIONAL
CLASS/SHARES
AUTHORIZED 150,000,000 100,000,000
============ ============
Sold 4,821,611 49,655,535 12,204,168 124,211,238

Issued in
reinvestment of
distributions 190,992 1,933,972 4,925,986 48,097,957

Redeemed (7,923,043) (81,880,884) (14,549,388) (146,245,526)
------------ -------------- ------------ -------------
(2,910,440) (30,291,377) 2,580,766 26,063,669
------------ -------------- ------------ -------------
ADVISOR
CLASS/SHARES
AUTHORIZED 150,000,000 125,000,000
============ ============
Sold 2,455,792 25,087,951 7,282,047 73,933,085

Issued in
reinvestment of
distributions 121,871 1,229,741 5,660,010 54,914,835

Redeemed (6,650,192) (67,867,281) (13,061,989) (132,193,029)
------------ -------------- ------------ -------------
(4,072,529) (41,549,589) (119,932) (3,345,109)
------------ -------------- ------------ -------------
C CLASS/SHARES
AUTHORIZED 40,000,000 5,000,000
============ ============
Sold -- -- 389 3,984

Issued in
reinvestment of
distributions -- -- 45,980 427,615

Redeemed (105,572) (1,011,209) (50,491) (490,541)
------------ -------------- ------------ -------------
(105,572) (1,011,209) (4,122) (58,942)
------------ -------------- ------------ -------------
Net increase
(decrease) (23,700,543) $(241,554,134) (4,524,681) $(53,422,340)
============ ============== ============ =============

5. SECURITIES LENDING

As of September 30, 2007, securities in Mid Cap Value and Small Cap Value
valued at $12,046,231 and $288,193,163, respectively, were on loan through the
lending agent, JPMCB, to certain approved borrowers. JPMCB receives and
maintains collateral in the form of cash and/or acceptable securities as
approved by ACIM. Cash collateral is invested in authorized investments by the
lending agent in a pooled account. The value of cash collateral received at
period end is disclosed in the Statement of Assets and Liabilities and
investments made with the cash by the lending agent are listed in the Schedule
of Investments. Any deficiencies or excess of collateral must be delivered or
transferred by the member firms no later than the close of business on the
next business day. The total value of all collateral received, at this date,
was $12,513,536 and $298,914,394, respectively. The funds' risks in securities
lending are that the borrower may not provide additional collateral when
required or return the securities when due. If the borrower defaults, receipt
of the collateral by the funds may be delayed or limited.

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31

6. AFFILIATED COMPANY TRANSACTIONS

If a fund's holding represents ownership of 5% or more of the voting
securities of a company, the company is affiliated as defined in the 1940 Act.
A summary of transactions for each company which is or was an affiliate at or
during the six months ended September 30, 2007 follows:

September 30, 2007
Share Balance Purchase Sales Realized Dividend Share Market
Fund/Company 3/31/07 Cost Cost Gain (Loss) Income Balance Value
Small Cap Value

EFJ Inc.(1)(2) 1,325,000 $ 402,169 $ 738,016 $(145,840) -- 1,295,000 $ 7,511,000

Neoware
Inc.(1)(2)(3) 920,000 1,360,552 10,226,259 2,366,574 -- 180,000 2,919,600

Odyssey
HealthCare,
Inc.(2) -- 22,128,925 471,447 (70,838) -- 1,812,121 17,414,483

Patriot Capital
Funding,
Inc.(1)(3) 1,180,000 912,754 10,306,417 518,301 $336,000 500,000 6,685,000
----------- ----------- ---------- -------- -----------
$24,804,400 $21,742,139 $2,668,197 $336,000 $34,530,083
=========== =========== ========== ======== ===========

(1) Security, or a portion thereof, was on loan as of September 30, 2007.

(2) Non-income producing.

(3) Company was not an affiliate at September 30, 2007.

7. BANK LINE OF CREDIT

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

8. RISK FACTORS

Small Cap Value generally invests in smaller companies which may be more
volatile, and subject to greater short-term risk than those of larger
companies. There are certain risks involved in investing in foreign
securities. These risks include those resulting from future adverse political,
social, and economic developments, fluctuations in currency exchange rates,
the possible imposition of exchange controls, and other foreign laws or
restrictions.

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32

9. FEDERAL TAX INFORMATION

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

As of September 30, 2007, the components of investments for federal income tax
purposes were as follows:

Mid Cap Value Small Cap Value
Federal tax cost of investments $421,682,647 $2,143,263,130
============= ===============
Gross tax appreciation of investments $15,824,865 $186,676,419

Gross tax depreciation of investments (20,687,801) (130,889,678)
------------- ---------------
Net tax appreciation (depreciation) of
investments $(4,862,936) $55,786,741
============= ===============

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

Mid Cap Value had currency loss deferrals of $(8,200), which represents net
capital losses incurred in the five-month period ended March 31, 2007. Mid Cap
Value has elected to treat such losses as having been incurred in the
following fiscal year for federal income tax purposes.

10. CORPORATE EVENT

On July 27, 2007, the C Class shareholders of Small Cap Value approved a
reclassification of C Class shares into Advisor Class shares. The
reclassification is expected to be effective December 3, 2007. The change was
approved by the Board of Directors on November 29, 2006 and March 7, 2007.

11. RECENTLY ISSUED ACCOUNTING STANDARDS

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

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

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33

FINANCIAL HIGHLIGHTS
Mid Cap Value

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

Net Asset Value, Beginning
of Period $13.33 $12.10 $11.32 $10.02 $10.00
-------- -------- -------- ------- --------
Income From Investment
Operations

Net Investment
Income (Loss)(3) 0.08 0.16 0.21 0.09 --(4)

Net Realized and
Unrealized Gain (Loss) 0.27 1.87 1.70 1.54 0.02
-------- -------- -------- ------- --------
Total From
Investment
Operations 0.35 2.03 1.91 1.63 0.02
-------- -------- -------- ------- --------
Distributions

From Net
Investment Income (0.07) (0.14) (0.21) (0.06) --

From Net Realized Gains -- (0.66) (0.92) (0.27) --
-------- -------- -------- ------- --------
Total Distributions (0.07) (0.80) (1.13) (0.33) --
-------- -------- -------- ------- --------
Net Asset Value,
End of Period $13.61 $13.33 $12.10 $11.32 $10.02
======== ======== ======== ======= ========

TOTAL RETURN(5) 2.66% 17.12% 17.62% 16.40% 0.20%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average
Net Assets 1.00%(6) 1.00% 1.00% 1.00% 1.00%(6)

Ratio of Net Investment
Income (Loss) to
Average Net Assets 1.17%(6) 1.30% 1.77% 0.83% 0.00%(6)

Portfolio Turnover Rate 107% 187% 228% 192% 0%

Net Assets, End of Period
(in thousands) $349,948 $301,642 $115,262 $42,059 $1,619

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

(2) For the one day period ended March 31, 2004 (inception date).

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

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

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

(6) Annualized.

See Notes to Financial Statements.

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34

Mid Cap Value

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

Net Asset Value, Beginning of Period $13.33 $12.10 $11.33 $10.07
-------- ------- ------- --------
Income From Investment Operations

Net Investment Income (Loss)(3) 0.09 0.19 0.24 0.07

Net Realized and Unrealized
Gain (Loss) 0.28 1.87 1.69 1.51
-------- ------- ------- --------
Total From Investment Operations 0.37 2.06 1.93 1.58
-------- ------- ------- --------
Distributions

From Net Investment Income (0.09) (0.17) (0.24) (0.05)

From Net Realized Gains -- (0.66) (0.92) (0.27)
-------- ------- ------- --------
Total Distributions (0.09) (0.83) (1.16) (0.32)
-------- ------- ------- --------
Net Asset Value, End of Period $13.61 $13.33 $12.10 $11.33
======== ======= ======= ========

TOTAL RETURN(4) 2.76% 17.36% 17.74% 15.82%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average
Net Assets 0.80%(5) 0.80% 0.80% 0.80%(5)

Ratio of Net Investment Income (Loss) to
Average Net Assets 1.37%(5) 1.50% 1.97% 1.00%(5)

Portfolio Turnover Rate 107% 187% 228% 192%(6)

Net Assets, End of Period (in thousands) $17,777 $20,623 $10,510 $8,082

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

(2) August 2, 2004 (commencement of sale) through March 31, 2005.

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

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

(5) Annualized.

(6) Portfolio turnover is calculated at the fund level. Percentage indicated
was calculated for the year ended March 31, 2005.

See Notes to Financial Statements.

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35

Mid Cap Value

Advisor Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
2007(1) 2007 2006 2005(2)

PER-SHARE DATA

Net Asset Value, Beginning of Period $13.33 $12.10 $11.32 $10.99
-------- ------- ------ --------
Income From Investment Operations

Net Investment Income (Loss)(3) 0.06 0.14 0.16 0.03

Net Realized and
Unrealized Gain (Loss) 0.28 1.86 1.72 0.31
-------- ------- ------ --------
Total From Investment Operations 0.34 2.00 1.88 0.34
-------- ------- ------ --------
Distributions

From Net Investment Income (0.06) (0.11) (0.18) (0.01)

From Net Realized Gains -- (0.66) (0.92) --
-------- ------- ------ --------
Total Distributions (0.06) (0.77) (1.10) (0.01)
-------- ------- ------ --------
Net Asset Value, End of Period $13.61 $13.33 $12.10 $11.32
======== ======= ====== ========

TOTAL RETURN(4) 2.53% 16.83% 17.32% 3.05%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average
Net Assets 1.25%(5) 1.25% 1.25% 1.25%(5)

Ratio of Net Investment Income (Loss) to
Average Net Assets 0.92%(5) 1.05% 1.52% 1.34%(5)

Portfolio Turnover Rate 107% 187% 228% 192%(6)

Net Assets, End of Period (in thousands) $34,462 $21,412 $8,175 $1,057

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

(2) January 13, 2005 (commencement of sale) through March 31, 2005.

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

(5) Annualized.

(6) Portfolio turnover is calculated at the fund level. Percentage indicated
was calculated for the year ended March 31, 2005.

See Notes to Financial Statements.

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36

Mid Cap Value

R Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
2007(1) 2007 2006(2)
PER-SHARE DATA

Net Asset Value, Beginning of Period $13.32 $12.09 $12.21
---------- -------- --------
Income From Investment Operations

Net Investment Income (Loss)(3) 0.05 0.13 0.07

Net Realized and Unrealized Gain (Loss) 0.28 1.84 0.79
---------- -------- --------
Total From Investment Operations 0.33 1.97 0.86
---------- -------- --------
Distributions

From Net Investment Income (0.04) (0.08) (0.06)

From Net Realized Gains -- (0.66) (0.92)
---------- -------- --------
Total Distributions (0.04) (0.74) (0.98)
---------- -------- --------
Net Asset Value, End of Period $13.61 $13.32 $12.09
========== ======== ========

TOTAL RETURN(4) 2.48% 16.55% 7.56%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets 1.50%(5) 1.50% 1.50%(5)

Ratio of Net Investment Income (Loss)
to Average Net Assets 0.67%(5) 0.80% 0.97%(5)

Portfolio Turnover Rate 107% 187% 228%(6)

Net Assets, End of Period $1,828,665 $820,196 $27

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

(2) July 29, 2005 (commencement of sale) through March 31, 2006.

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

(5) Annualized.

(6) Portfolio turnover is calculated at the fund level. Percentage indicated
was calculated for the year ended March 31, 2006.

See Notes to Financial Statements.

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37

Small Cap Value

Investor Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
2007(1) 2007 2006 2005 2004 2003
PER-SHARE DATA

Net Asset Value,
Beginning of Period $10.01 $10.45 $10.07 $9.71 $6.44 $8.62
-------- -------- -------- -------- -------- --------
Income From
Investment Operations

Net Investment
Income (Loss)(2) 0.04 0.06 0.06 0.03 0.05 0.03

Net Realized and
Unrealized Gain
(Loss) 0.02 0.87 1.72 1.31 3.26 (1.87)
-------- -------- -------- -------- -------- --------
Total From
Investment
Operations 0.06 0.93 1.78 1.34 3.31 (1.84)
-------- -------- -------- -------- -------- --------
Distributions

From Net
Investment Income (0.04) (0.04) (0.06) (0.03) (0.04) (0.02)

From Net
Realized Gains -- (1.33) (1.34) (0.95) -- (0.32)
-------- -------- -------- -------- -------- --------
Total
Distributions (0.04) (1.37) (1.40) (0.98) (0.04) (0.34)
-------- -------- -------- -------- -------- --------
Net Asset Value, End
of Period $10.03 $10.01 $10.45 $10.07 $9.71 $6.44
======== ======== ======== ======== ======== ========

TOTAL RETURN(3) 0.62% 9.38% 18.67% 14.00% 51.53% (21.55)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to Average
Net Assets 1.26%(4) 1.25% 1.25% 1.25% 1.26% 1.25%

Ratio of Net
Investment Income
(Loss) to Average Net
Assets 0.80%(4) 0.57% 0.58% 0.32% 0.59% 0.37%

Portfolio Turnover
Rate 56% 121% 111% 108% 110% 104%

Net Assets, End of
Period (in thousands) $1,096,912 $1,261,392 $1,390,024 $1,252,153 $1,050,500 $670,755

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

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

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

(4) Annualized.

See Notes to Financial Statements.

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38

Small Cap Value

Institutional Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
2007(1) 2007 2006 2005 2004 2003
PER-SHARE DATA

Net Asset Value,
Beginning of Period $10.03 $10.47 $10.08 $9.72 $6.45 $8.63
-------- -------- -------- -------- -------- --------
Income From Investment
Operations

Net
Investment
Income
(Loss)(2) 0.05 0.08 0.08 0.05 0.07 0.04

Net Realized
and
Unrealized
Gain (Loss) 0.02 0.87 1.73 1.31 3.26 (1.87)
-------- -------- -------- -------- -------- --------
Total From
Investment
Operations 0.07 0.95 1.81 1.36 3.33 (1.83)
-------- -------- -------- -------- -------- --------
Distributions

From Net
Investment
Income (0.05) (0.06) (0.08) (0.05) (0.06) (0.03)

From Net
Realized
Gains -- (1.33) (1.34) (0.95) -- (0.32)
-------- -------- -------- -------- -------- --------
Total
Distributions (0.05) (1.39) (1.42) (1.00) (0.06) (0.35)
-------- -------- -------- -------- -------- --------
Net Asset Value, End
of Period $10.05 $10.03 $10.47 $10.08 $9.72 $6.45
======== ======== ======== ======== ======== ========

TOTAL RETURN(3) 0.72% 9.52% 18.98% 14.20% 51.75% (21.38)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to Average
Net Assets 1.06%(4) 1.05% 1.05% 1.05% 1.06% 1.05%

Ratio of Net
Investment Income
(Loss) to Average Net
Assets 1.00%(4) 0.77% 0.78% 0.52% 0.79% 0.57%

Portfolio Turnover
Rate 56% 121% 111% 108% 110% 104%

Net Assets, End of
Period (in thousands) $414,672 $443,173 $435,327 $314,700 $170,784 $79,546

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

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

(4) Annualized.

See Notes to Financial Statements.

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39

Small Cap Value

Advisor Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
2007(1) 2007 2006 2005 2004 2003
PER-SHARE DATA

Net Asset Value,
Beginning of Period $10.00 $10.45 $10.06 $9.71 $6.43 $8.62
-------- -------- -------- -------- -------- --------
Income From Investment
Operations

Net
Investment
Income
(Loss)(2) 0.03 0.03 0.03 0.01 0.03 0.01

Net Realized
and
Unrealized
Gain (Loss) 0.01 0.87 1.74 1.30 3.27 (1.87)
-------- -------- -------- -------- -------- --------
Total From
Investment
Operations 0.04 0.90 1.77 1.31 3.30 (1.86)
-------- -------- -------- -------- -------- --------
Distributions

From Net
Investment
Income (0.03) (0.02) (0.04) (0.01) (0.02) (0.01)

From Net
Realized
Gains -- (1.33) (1.34) (0.95) -- (0.32)
-------- -------- -------- -------- -------- --------
Total
Distributions (0.03) (1.35) (1.38) (0.96) (0.02) (0.33)
-------- -------- -------- -------- -------- --------
Net Asset Value, End
of Period $10.01 $10.00 $10.45 $10.06 $9.71 $6.43
======== ======== ======== ======== ======== ========

TOTAL RETURN(3) 0.40% 9.10% 18.51% 13.70% 51.38% (21.85)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to Average
Net Assets 1.51%(4) 1.50% 1.50% 1.50% 1.51% 1.50%

Ratio of Net
Investment Income
(Loss) to Average Net
Assets 0.55%(4) 0.32% 0.33% 0.07% 0.34% 0.12%

Portfolio Turnover
Rate 56% 121% 111% 108% 110% 104%

Net Assets, End of
Period (in thousands) $394,134 $434,182 $455,001 $624,633 $432,261 $173,064

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

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

(4) Annualized.

See Notes to Financial Statements.

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40

Small Cap Value

C Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
2007(1) 2007 2006 2005 2004 2003
PER-SHARE DATA

Net Asset Value,
Beginning of
Period $9.58 $10.12 $9.83 $9.57 $6.35 $8.59
---------- ------- ------- ------- ------- --------
Income From
Investment
Operations

Net
Investment
Income
(Loss)(2) (0.01) (0.04) (0.04) (0.07) (0.03) (0.04)

Net Realized
and
Unrealized
Gain (Loss) 0.02 0.83 1.67 1.28 3.25 (1.88)
---------- ------- ------- ------- ------- --------
Total From
Investment
Operations 0.01 0.79 1.63 1.21 3.22 (1.92)
---------- ------- ------- ------- ------- --------
Distributions

From Net
Realized
Gains -- (1.33) (1.34) (0.95) -- (0.32)
---------- ------- ------- ------- ------- --------

Net Asset
Value, End
of Period $9.59 $9.58 $10.12 $9.83 $9.57 $6.35
========== ======= ======= ======= ======== ========

TOTAL RETURN(3) 0.00% 8.35% 17.48% 12.85% 50.71% (22.58)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net
Assets 2.26%(4) 2.25% 2.25% 2.25% 2.26% 2.25%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets (0.20)%(4) (0.43)% (0.42)% (0.68)% (0.41)% (0.63)%

Portfolio
Turnover Rate 56% 121% 111% 108% 110% 104%

Net Assets, End
of Period (in
thousands) $2,434 $3,444 $3,678 $3,470 $3,711 $2,936

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

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

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

(4) Annualized.

See Notes to Financial Statements.

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41

PROXY VOTING RESULTS

A special meeting of shareholders was held on July 27, 2007, to vote on the
following proposals. The proposals received the required number of votes of
the American Century Capital Portfolios, Inc. or the applicable fund,
depending on the proposal, and were adopted. A summary of voting results is
listed below each proposal.

PROPOSAL 1:

To elect nine Directors to the Board of Directors of American Century Capital
Portfolios, Inc. (the proposal was voted on by all shareholders of funds
issued by American Century Capital Portfolios, Inc.).

James E. Stowers, Jr. For: 11,443,781,487
Withhold: 252,686,939
Abstain: 0
Broker Non-Vote: 0

Jonathan S. Thomas For: 11,454,104,706
Withhold: 242,363,720
Abstain: 0
Broker Non-Vote: 0

Thomas A. Brown For: 11,456,645,347
Withhold: 239,823,079
Abstain: 0
Broker Non-Vote: 0

Andrea C. Hall For: 11,459,598,200
Withhold: 236,870,226
Abstain: 0
Broker Non-Vote: 0

James A. Olson For: 11,454,607,738
Withhold: 241,860,688
Abstain: 0
Broker Non-Vote: 0

Donald H. Pratt For: 11,450,710,462
Withhold: 245,757,964
Abstain: 0
Broker Non-Vote: 0

Gale E. Sayers For: 11,458,471,500
Withhold: 237,996,926
Abstain: 0
Broker Non-Vote: 0

M. Jeannine Strandjord For: 11,451,541,828
Withhold: 244,926,598
Abstain: 0
Broker Non-Vote: 0

Timothy S. Webster For: 11,460,198,888
Withhold: 236,269,538
Abstain: 0
Broker Non-Vote: 0

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42

PROPOSAL 2:

To approve a change in the fee structure of the Advisor Class. This proposal
was voted on by the Advisor Class shareholders of the following funds:

Mid Cap
Value Small Cap Value
For: 8,998,501 214,431,392
Against: 503,620 9,620,540
Abstain: 1,401,876 5,767,927
Broker Non-Vote: 493,018 2,880,787

PROPOSAL 3:

To approve the reclassification of the C Class shares of Small Cap Value,
whereby all of the C Class shares will be reclassified as Advisor Class shares
of that fund. This proposal was voted on by the C Class shareholders of Small
Cap Value.

Small Cap Value
For: 1,887,559
Against: 63,460
Abstain: 87,206
Broker Non-Vote: 1,457,549

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43

APPROVAL OF MANAGEMENT AGREEMENTS
Mid Cap Value and Small Cap Value

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

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

ANNUAL CONTRACT REVIEW PROCESS

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

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

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

* data comparing the cost of owning the funds to the cost of owning similar
funds;

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

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

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

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

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44

FACTORS CONSIDERED

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

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

* fund construction and design

* portfolio security selection

* initial capitalization/funding

* securities trading

* custody of fund assets

* daily valuation of the funds' portfolio

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

* legal services

* regulatory and portfolio compliance

* financial reporting

* marketing and distribution

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

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

------
45

to conduct their business. At each quarterly meeting the Directors review
investment performance information for the funds, together with comparative
information for appropriate benchmarks and peer groups of funds managed
similarly to the funds. The Directors also review detailed performance
information during the 15(c) Process comparing the funds' performance with
that of similar funds not managed by the advisor. If performance concerns are
identified, the Directors discuss with the advisor the reasons for such
results (e.g., market conditions, security selection) and any efforts being
undertaken to improve performance. Mid Cap Value's performance for both the
one- and three-year periods was above the median for its peer group. Small Cap
Value's performance fell below the median for the one-year period and was
above the median for the three-year period.

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

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

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

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

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46

COMPARISON TO OTHER FUNDS' FEES. The funds pay the advisor a single,
all-inclusive (or unified) management fee for providing all services necessary
for the management and operation of the funds, other than brokerage expenses,
taxes, interest, extraordinary expenses, and the fees and expenses of the
funds' independent directors (including their independent legal counsel).
Under the unified fee structure, the advisor is responsible for providing all
investment advisory, custody, audit, administrative, compliance,
recordkeeping, marketing and shareholder services, or arranging and
supervising third parties to provide such services. By contrast, most other
funds are charged a variety of fees, including an investment advisory fee, a
transfer agency fee, an administrative fee, distribution charges and other
expenses. Other than their investment advisory fees and Rule 12b-1
distribution fees, all other components of the total fees charged by these
other funds may be increased without shareholder approval. The board believes
the unified fee structure is a benefit to fund shareholders because it clearly
discloses to shareholders the cost of owning fund shares, and, since the
unified fee cannot be increased without a vote of fund shareholders, it shifts
to the advisor the risk of increased costs of operating the funds and provides
a direct incentive to minimize administrative inefficiencies. Part of the
Directors' analysis of fee levels involves reviewing certain evaluative data
compiled by a 15(c) Provider comparing the funds' unified fee to the total
expense ratio of other funds in the funds' peer group. The unified fee charged
to shareholders of the funds was below the median of the total expense ratios
of each fund's respective peer group.

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

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

CONCLUSIONS OF THE DIRECTORS

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

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47

SHARE CLASS INFORMATION

Four classes of shares are authorized for sale by Mid Cap Value: Investor
Class, Institutional Class, Advisor Class, and R Class. Four classes of shares
are authorized for sale by Small Cap Value: Investor Class, Institutional
Class, Advisor Class, and C Class. The total expense ratio of Institutional
Class shares is lower than that of Investor Class shares. The total expense
ratios of Advisor Class, C Class, and R Class shares are higher than that of
Investor Class shares.

INVESTOR CLASS shares are available for purchase in two ways: 1) directly from
American Century without any commissions or other fees; and/or 2) through
certain financial intermediaries (such as banks, broker-dealers, insurance
companies and investment advisors), which may require payment of a transaction
fee to the financial intermediary. The funds' prospectuses contain additional
information regarding eligibility for Investor Class shares.

INSTITUTIONAL CLASS shares are available to large investors such as
endowments, foundations, and retirement plans, and to financial intermediaries
serving these investors. This class recognizes the relatively lower cost of
serving institutional customers and others who invest at least $5 million ($3
million for endowments and foundations) in an American Century fund or at
least $10 million in multiple funds. In recognition of the larger investments
and account balances and comparatively lower transaction costs, the unified
management fee of Institutional Class shares is 0.20% less than the unified
management fee of Investor Class shares.

ADVISOR CLASS shares are sold primarily through institutions such as
investment advisors, banks, broker-dealers, insurance companies, and financial
advisors. The unified management fee for Advisor Class shares is the same as
for Investor Class shares. Advisor Class shares are subject to a 0.25% annual
Rule 12b-1 distribution and service fee.

C CLASS shares are sold primarily through employer-sponsored retirement plans
and through institutions such as investment advisors, banks, broker-dealers,
and insurance companies. C Class shares redeemed within 12 months of purchase
are subject to a contingent deferred sales charge (CDSC) of 1.00%. There is no
CDSC on shares acquired through reinvestment of dividends or capital gains.
The unified management fee for C Class shares is the same as for Investor
Class shares. C Class shares also are subject to a Rule 12b-1 distribution and
service fee of 1.00%.

R CLASS shares are sold primarily through employer-sponsored retirement plans
and through institutions such as investment advisors, banks, broker-dealers,
and insurance companies. The unified management fee for R Class shares is the
same as for Investor Class shares. R Class shares are subject to a 0.50%
annual Rule 12b-1 distribution and service fee.

All classes of shares represent a pro rata interest in the funds and generally
have the same rights and preferences.

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48

ADDITIONAL INFORMATION

RETIREMENT ACCOUNT INFORMATION

As required by law, any distributions you receive from an IRA or certain
403(b), 457 and qualified plans [those not eligible for rollover to an IRA or
to another qualified plan] are subject to federal income tax withholding,
unless you elect not to have withholding apply. Tax will be withheld on the
total amount withdrawn even though you may be receiving amounts that are not
subject to withholding, such as nondeductible contributions. In such case,
excess amounts of withholding could occur. You may adjust your withholding
election so that a greater or lesser amount will be withheld.

If you don't want us to withhold on this amount, you must notify us to not
withhold the federal income tax. Even if you plan to roll over the amount you
withdraw to another tax-deferred account, the withholding rate still applies
to the withdrawn amount unless we have received notice not to withhold federal
income tax prior to the withdrawal. You may notify us in writing or in certain
situations by telephone or through other electronic means. You have the right
to revoke your withholding election at any time and any election you make may
remain in effect until revoked by filing a new election.

Remember, even if you elect not to have income tax withheld, you are liable
for paying income tax on the taxable portion of your withdrawal. If you elect
not to have income tax withheld or you don't have enough income tax withheld,
you may be responsible for payment of estimated tax. You may incur penalties
under the estimated tax rules if your withholding and estimated tax payments
are not sufficient.

State tax will be withheld if, at the time of your distribution, your address
is within one of the mandatory withholding states and you have federal income
tax withheld. State taxes will be withheld from your distribution in
accordance with the respective state rules.

PROXY VOTING GUIDELINES

American Century Investment Management, Inc., the funds' investment advisor,
is responsible for exercising the voting rights associated with the securities
purchased and/or held by the funds. A description of the policies and
procedures the advisor uses in fulfilling this responsibility is available
without charge, upon request, by calling 1-800-345-2021. It is also available
on American Century's website at americancentury.com and on the Securities and
Exchange Commission's website at sec.gov. Information regarding how the
investment advisor voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is available on the "About Us" page
at americancentury.com. It is also available at sec.gov.

QUARTERLY PORTFOLIO DISCLOSURE

The funds file their complete schedule of portfolio holdings with the
Securities and Exchange Commission (SEC) for the first and third quarters of
each fiscal year on Form N-Q. The funds' Forms N-Q are available on the SEC's
website at sec.gov, and may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make
their complete schedule of portfolio holdings for the most recent quarter of
their fiscal year available on their website at americancentury.com and, upon
request, by calling 1-800-345-2021.

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49

INDEX DEFINITIONS

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

The RUSSELL 1000® INDEX is a market-capitalization weighted, large-cap index
created by Frank Russell Company to measure the performance of the 1,000
largest companies in the Russell 3000 Index (the 3,000 largest publicly traded
U.S. companies, based on total market capitalization).

The RUSSELL 1000® GROWTH INDEX measures the performance of those Russell 1000
Index companies (the 1,000 largest of the 3,000 largest publicly traded U.S.
companies, based on total market capitalization) with higher price-to-book
ratios and higher forecasted growth values.

The RUSSELL 1000® VALUE INDEX measures the performance of those Russell 1000
Index companies (the 1,000 largest of the 3,000 largest publicly traded U.S.
companies, based on total market capitalization) with lower price-to-book
ratios and lower forecasted growth values.

The RUSSELL 2000® INDEX is a market-capitalization weighted index created by
Frank Russell Company to measure the performance of the 2,000 smallest of the
3,000 largest publicly traded U.S. companies, based on total market
capitalization.

The RUSSELL 2000® GROWTH INDEX measures the performance of those Russell 2000
Index companies (the 2,000 smallest of the 3,000 largest publicly traded U.S.
companies, based on total market capitalization) with higher price-to-book
ratios and higher forecasted growth values.

The RUSSELL 2000® VALUE INDEX measures the performance of those Russell 2000
Index companies (the 2,000 smallest of the 3,000 largest publicly traded U.S.
companies, based on total market capitalization) with lower price-to-book
ratios and lower forecasted growth values.

The RUSSELL MIDCAP® INDEX measures the performance of the 800 smallest of the
1,000 largest publicly traded U.S. companies, based on total market
capitalization.

The RUSSELL MIDCAP® GROWTH INDEX measures the performance of those Russell
Midcap Index companies (the 800 smallest of the 1,000 largest publicly traded
U.S. companies, based on total market capitalization) with higher
price-to-book ratios and higher forecasted growth values.

The RUSSELL MIDCAP® VALUE INDEX measures the performance of those Russell
Midcap Index companies (the 800 smallest of the 1,000 largest publicly traded
U.S. companies, based on total market capitalization) with lower price-to-book
ratios and lower forecasted growth values.

------
50

NOTES

------
51

[back cover]

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0711
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[front cover]

AMERICAN CENTURY INVESTMENTS

Semiannual Report September 30, 2007

[photo of fall]

Equity Income Fund
Value Fund
Large Company Value Fund

[american century investments logo and text logo]

OUR MESSAGE TO YOU

To help you monitor your investment, my colleagues and I take pride in
providing you with the semiannual report for the American Century® Equity
Income, Value, and Large Company Value funds for the six months ended
September 30, 2007. This has been an eventful and exciting period for us.
We've been working diligently to secure a smooth executive leadership
transition.

I'm honored to be addressing you in the "Our Message" space long devoted to
company founder Jim Stowers, Jr. and his son Jim Stowers III. The Stowers
family remains an integral part of our heritage, leadership, and financial
structure. Jim Jr. continues as co-chair of the American Century Companies,
Inc. (ACC) board of directors with Richard Brown, who has been on the board
since 1998 and co-chairs the Stowers Institute for Medical Research board.

But times and opportunities change. As the latest step in a career transition
that began when he relinquished his executive leadership and investment
management responsibilities in early 2005, Jim III stepped down from the ACC
board in July 2007 to focus on new business ventures. Jim III's move reflects
his family's comfort with our direction and leadership, and gives the Stowers
more leeway to devote time and energy to other important priorities, such as
the Stowers Institute for Medical Research.

Meanwhile, American Century Investments, our clients, and our employees have
been my top priority since I became company president and CEO in March. We've
also added the executive talents of overall chief investment officer Enrique
Chang, international equity CIO Mark On, U.S. growth equity CIO Steve Lurito,
and chief operating officer Barry Fink.

This skilled group, combined with our existing senior management team, has
already had a positive impact on the development and management of the
products and services we take pride in delivering to you.

/s/Jonathan Thomas
Jonathan Thomas

[photo of Jonathan Thomas]

Jonathan Thomas
PRESIDENT
AMERICAN CENTURY COMPANIES, INC.

[photo of James E. Stowers, Jr.]

James E. Stowers, Jr.
FOUNDER AND
CO-CHAIRMAN OF THE BOARD
AMERICAN CENTURY COMPANIES, INC.

[photo of Richard Brown]

Richard Brown
CO-CHAIRMAN OF THE BOARD
AMERICAN CENTURY COMPANIES, INC.

TABLE OF CONTENTS

Market Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . 2
U.S. Stock Index Returns . . . . . . . . . . . . . . . . . . . . . . 2

EQUITY INCOME

Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 5
Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Top Five Industries. . . . . . . . . . . . . . . . . . . . . . . . . 6
Types of Investments in Portfolio. . . . . . . . . . . . . . . . . . 6
Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 7

VALUE

Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 13
Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Top Five Industries. . . . . . . . . . . . . . . . . . . . . . . . . 14
Types of Investments in Portfolio. . . . . . . . . . . . . . . . . . 14
Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 15

LARGE COMPANY VALUE

Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . . 20
Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Top Five Industries. . . . . . . . . . . . . . . . . . . . . . . . . 21
Types of Investments in Portfolio. . . . . . . . . . . . . . . . . . 21
Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . 22

Shareholder Fee Examples. . . . . . . . . . . . . . . . . . . . . . . 25

FINANCIAL STATEMENTS

Statement of Assets and Liabilities . . . . . . . . . . . . . . . . . 28
Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . 30
Statement of Changes in Net Assets. . . . . . . . . . . . . . . . . . 31
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . 33
Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . . 42

OTHER INFORMATION

Proxy Voting Results. . . . . . . . . . . . . . . . . . . . . . . . . 60
Approval of Management Agreements for Equity Income,
Value and Large Company Value. . . . . . . . . . . . . . . . . . . . 62
Share Class Information . . . . . . . . . . . . . . . . . . . . . . . 66
Additional Information. . . . . . . . . . . . . . . . . . . . . . . . 68
Index Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 69

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

MARKET PERSPECTIVE

[photo of chief investment officer]

By Enrique Chang, Chief Investment Officer,
American Century Investments

STOCKS ADVANCED IN A VOLATILE ENVIRONMENT

U.S. stocks produced positive results for the six months ended September 30,
2007, overcoming a confluence of challenges that led to extraordinary market
volatility.

The stock market enjoyed a steady rally during the first half of the six-month
period thanks to corporate earnings growth, which decelerated but continued to
surpass expectations. Robust merger activity also boosted stocks as leveraged
buy-outs from private equity firms put the volume of deal-making ahead of last
year's record pace.

After reaching all-time highs in mid-July, however, the major stock indexes
declined sharply as worsening problems in the subprime mortgage market led to
a credit crisis that threatened to derail the economic expansion. Tighter
lending standards crimped funding for leveraged buy-outs, removing an
important leg of support for the stock market, and rising energy and commodity
prices sparked inflation worries despite slowing economic activity.

As investors grew increasingly risk-averse, the Federal Reserve (the Fed)
stepped in to provide a measure of relief and comfort. The Fed lowered its
discount rate in mid-August and federal funds rate target in September -- the
Fed's first rate cuts since June 2003. The Fed's actions helped alleviate some
of the credit and economic concerns, allowing the major stock indexes to stage
a solid recovery during the final six weeks of the period.

LARGE-CAP AND GROWTH OUTPERFORMED

Large-cap stocks delivered the best returns (see the accompanying table),
followed by mid- and small-cap issues. Growth stocks, which have trailed value
issues for much of the decade, enjoyed a resurgence during the six-month
period, outpacing value shares by a wide margin across all market
capitalizations.

Energy was the best-performing sector in the stock market during the period,
benefiting from a 24% increase in the price of oil. Information technology and
industrials stocks also fared well. The only two sectors of the market to
decline during the period were financials and consumer discretionary.

U.S. Stock Index Returns
For the six months ended September 30, 2007*

RUSSELL 1000 INDEX (LARGE-CAP) 7.99%
Russell 1000 Growth Index 11.35%
Russell 1000 Value Index 4.67%

RUSSELL MIDCAP INDEX 4.89%
Russell Midcap Growth Index 9.03%
Russell Midcap Value Index -0.03%

RUSSELL 2000 INDEX (SMALL-CAP) 1.19%
Russell 2000 Growth Index 6.70%
Russell 2000 Value Index -4.10%

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

------
2

PERFORMANCE
Equity Income

Total Returns as of September 30, 2007
Average Annual Returns
6 10 Since Inception
months(1) 1 year 5 years years Inception Date

INVESTOR CLASS 5.17% 12.81% 14.42% 10.51% 13.74% 8/1/94

RUSSELL 3000 VALUE
INDEX(2) 3.90% 13.73% 18.10% 8.84% 12.88%(3) --

S&P 500 INDEX(2) 8.44% 16.44% 15.45% 6.57% 11.53%(3) --

LIPPER EQUITY INCOME
FUNDS INDEX(2) 6.16% 15.23% 15.65% 6.90% 10.35%(3) --

Institutional Class 5.28% 13.02% 14.64% -- 10.61% 7/8/98

A Class(4)
No sales charge* 5.04% 12.53% 14.13% 10.23% 11.61%
With sales charge* -1.02% 6.05% 12.78% 9.58% 10.99% 3/7/97

B Class(1)
No sales charge* -- -- -- -- 0.00%
With sales charge* -- -- -- -- -5.00% 9/28/07

C Class
No sales charge* 4.65% 11.69% 13.30% -- 9.05%
With sales charge* 3.65% 11.69% 13.30% -- 9.05% 7/13/01

R Class 4.92% 12.27% -- -- 12.02% 8/29/03

* Sales charges include initial sales charges and contingent deferred sales
charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial
sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B
Class shares redeemed within six years of purchase are subject to a CDSC that
declines from 5.00% during the first year after purchase to 0.00% the sixth
year after purchase. C Class shares redeemed within 12 months of purchase are
subject to a maximum CDSC of 1.00%. Please see the Share Class Information
pages for more about the applicable sales charges for each share class. The
SEC requires that mutual funds provide performance information net of maximum
sales charges in all cases where charges could be applied.

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

(2) Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All
rights reserved. Any copying, republication or redistribution of Lipper
content, including by caching, framing or similar means, is expressly
prohibited without the prior written consent of Lipper. Lipper shall not be
liable for any errors or delays in the content, or for any actions taken in
reliance thereon.

The data contained herein has been obtained from company reports, financial
reporting services, periodicals and other resources believed to be reliable.
Although carefully verified, data on compilations is not guaranteed by Lipper
and may be incomplete. No offer or solicitations to buy or sell any of the
securities herein is being made by Lipper.

(3) Since 7/31/94, the date nearest the Investor Class's inception for which
data are available.

(4) Prior to September 4, 2007, the A Class was referred to as the Advisor
Class. Performance, with sales charge, prior to that date has been adjusted to
reflect the A Class's current sales charge.

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

------
3

Equity Income

Growth of $10,000 Over 10 Years

$10,000 investment made September 30, 1997

One-Year Returns Over 10 Years
Periods ended September 30
              1998    1999     2000      2001      2002      2003    2004     2005     2006     2007

Investor
Class        1.67%   15.98%    6.80%    14.30%    -3.72%    20.17%  17.22%    8.79%   13.47%   12.81%

Russell
3000 Value
Index        1.96%   17.64%    9.35%    -7.98%    -15.89%   24.89%  20.89%   16.78%   14.55%   13.73%

S&P 500
Index        9.05%   27.80%   13.28%   -26.62%    -20.49%   24.40%  13.87%   12.25%   10.79%   16.44%

Lipper
Equity
Income
Funds
Index        1.29%   13.36%    8.10%    -8.82%    -16.74%   20.48%  17.09%   13.52%   12.09%   15.23%

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-2021 or visit
americancentury.com. International investing involves special risks, such as
political instability and currency fluctuations.

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


------
4


PORTFOLIO COMMENTARY
Equity Income

Portfolio Managers: Phil Davidson, Kevin Toney, and Scott Moore

PERFORMANCE SUMMARY

Equity Income gained 5.17%* for the six months ended September 30, 2007. By
comparison, the Lipper Equity Income Funds Index and the median for
Morningstar's Large Cap Value category (whose performance, like Equity
Income's, reflects fund operating expenses) advanced 6.16% and 5.54%,**
respectively. Two market indices -- the Russell 3000 Value Index and the S&P
500 Index -- gained 3.90% and 8.44%, respectively. The portfolio's returns
reflect operating expenses, while the indices' returns do not.

The portfolio's solid return was achieved in the challenging market
environment described in the Market Perspective on page 2. Overall, growth
stocks outperformed value across the capitalization spectrum and investors
favored stocks with lower dividend yields. In the volatility that
characterized the second half of the period, they gravitated toward lower-beta
names. Equity Income performed well, largely because of our focus on
higher-quality businesses with sound balance sheets. In addition, during the
reporting period, the portfolio's small portion of international holdings also
contributed to results.

Over time, our disciplined investment approach has provided longer-term
investors with solid performance. Since Equity Income's inception on August 1,
1994, the portfolio has produced an average annualized return of 13.74%,
topping the returns for that period for the Lipper Equity Income Funds Index,
Morningstar's Large Cap Value category median, the Russell 3000 Value Index,
and the S&P 500 (see performance information on pages 3 - 4).

UNDERWEIGHT POSITION IN FINANCIALS ENHANCED RESULTS

Our underweight position in financials, coupled with effective security
selection, added value from a sector that trailed all others in the benchmark.
Many financial firms came under pressure amid the fallout in the subprime
lending category and suffered further in the credit crisis that followed.
However, our emphasis on quality helped the portfolio steer clear of firms
most exposed to the troubled subprime area.

Within the sector, Equity Income benefited from a limited exposure to real
estate investment trusts (REITS), which were down more than 9%. In addition,
we held only a modest position in Citigroup, which comprises a large part of
the benchmark. Citigroup's shares declined as the firm reported sizeable
write-downs of loan commitments and increased credit losses during the period.

Top Ten Holdings as of September 30, 2007
                                                % of net       % of net
                                              assets as of   assets as of
                                                 9/30/07        3/31/07
General Electric Co.                              5.7%           4.9%
Exxon Mobil Corp.                                 4.1%           4.4%
BP plc(1)                                         3.6%           2.6%
Fannie Mae, 5.375%, 1/5/08 (Conv. Pref.)          3.6%           2.7%
Freddie Mac                                       3.6%           3.7%
AT&T Inc.                                         3.3%           3.4%
Southern Co.                                      3.2%           1.9%
United Parcel Service, Inc. Cl B                  2.8%           2.5%
Bank of America Corp.                             2.8%           2.9%
Kraft Foods Inc. Cl A                             2.7%           2.5%

(1) Includes shares traded on all exchanges.

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

** The median returns for Morningstar's Large Cap Value category were 14.37%,
15.93% and 7.26% for the one-, five- and ten-year periods ended September 30,
2007, respectively, and 10.91% since the fund's inception. ©2007 Morningstar,
Inc. All Rights Reserved. The information contained herein: (1) is proprietary
to Morningstar and/or its content providers: (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or timely.
Neither Morningstar nor its content providers are responsible for any damages
or losses arising from any use of this information.


------
5


Equity Income

CONSUMER DISCRETIONARY CONTRIBUTED

The portfolio's results were aided by our relatively small allocation to the
consumer discretionary sector, which was one of the weakest in the benchmark.
Many investors shied away from these stocks in response to the housing
downturn and slowing economic growth. Our performance benefited from a lack of
exposure to homebuilders and media companies, as well as an underweight
position in retailers -- all segments that provided negative returns for the
benchmark.

STRONG STOCK SELECTION ADDED VALUE

The utilities sector provided a top performer in Virginia-based Dominion
Resources, which provides gas and electric services primarily in the
mid-Atlantic region. During the third quarter, the company used proceeds from
the sale of some of its exploration and production businesses to repurchase
roughly 16% of its outstanding shares through a Dutch auction, in which we
participated.

In the telecommunications sector, we owned Canada-based communications
company, BCE. BCE's share price increased on news that the company would be
acquired by Ontario Teachers' Pension Plan Board and affiliates of Providence
Equity Partners and Madison Dearborn Partners at a significant premium.

ENERGY AND CONSUMER STAPLES DETRACTED

The portfolio's mix of companies in the energy sector, which was the best
performer in the benchmark, hindered results. Because of valuations, we held
an underweight position in higher-beta exploration and production companies
whose shares rose on record oil prices. Our relative progress was also slowed
by a modest underweight position in major integrated oil and gas companies,
whose performance boosted the benchmark's progress.

In consumer staples, an overweight position in UST, the leading producer of
smokeless tobacco products, hampered results. The stock declined after tobacco
company Philip Morris USA announced plans to test-market a Marlboro-branded
moist smokeless tobacco.

STARTING POINT FOR NEXT REPORTING PERIOD

Your management team follows a disciplined, bottom-up process, selecting
companies one at a time for the portfolio. As of September 30, 2007, we
continued to see attractive opportunities in industrials, utilities, and
consumer staples companies, reflected in our overweight positions in these
sectors. With the reach of the debt market crisis still uncertain, we are
being extremely selective in our ownership of financials and consumer
discretionary companies, relying on our fundamental analysis to identify
strong, financially sound businesses whose securities provide attractive
yields.

Top Five Industries as of September 30, 2007
                                     % of net       % of net
                                   assets as of   assets as of
                                      9/30/07        3/31/07
Oil, Gas & Consumable Fuels            13.4%          11.4%
Food Products                          8.9%           6.1%
Pharmaceuticals                        8.1%           7.2%
Thrifts & Mortgage Finance             8.0%           7.0%
Commercial Banks                       7.3%           8.8%

Types of Investments in Portfolio
                                     % of net       % of net
                                   assets as of   assets as of
                                      9/30/07        3/31/07
Common Stocks and Options              78.7%          76.9%
Convertible Bonds                      14.1%          16.6%
Convertible Preferred Stocks           5.5%           4.4%
TOTAL EQUITY EXPOSURE                  98.3%          97.9%
Temporary Cash Investments             2.9%           1.4%
Other Assets and Liabilities*         (1.2)%          0.7%

* Includes securities lending collateral and other assets and liabilities.


------
6


SCHEDULE OF INVESTMENTS
Equity Income

SEPTEMBER 30, 2007 (UNAUDITED)

Shares/Principal Amount                                                      Value

Common Stocks -- 78.7%

AIR FREIGHT & LOGISTICS -- 2.8%
       2,580,506  United Parcel Service, Inc. Cl B                   $ 193,796,001
                                                                    --------------
AUTOMOBILES -- 0.3%
         551,700  Honda Motor Co., Ltd. ORD                             18,557,466
                                                                    --------------
BUILDING PRODUCTS -- 0.7%
       2,072,000  Masco Corp.(1)                                        48,008,240
                                                                    --------------
CAPITAL MARKETS -- 0.6%
         571,400  Merrill Lynch & Co., Inc.                             40,729,392
                                                                    --------------
CHEMICALS -- 0.3%
         388,300  Rohm and Haas Co.                                     21,616,661
                                                                    --------------
COMMERCIAL BANKS -- 7.3%
       2,534,300  Associated Banc-Corp.                                 75,091,309
       3,553,739  Commerce Bancshares, Inc.(1)(2)                      163,081,083
       1,846,700  Marshall & Ilsley Corp.                               80,830,059
       1,824,108  SunTrust Banks, Inc.                                 138,030,252
       1,376,100  U.S. Bancorp                                          44,764,533
                                                                    --------------
                                                                       501,797,236
                                                                    --------------
COMMERCIAL SERVICES & SUPPLIES -- 2.9%
       2,878,200  Pitney Bowes, Inc.                                   130,727,845
         726,561  Republic Services, Inc.                               23,765,810
       1,212,645  Waste Management, Inc.                                45,765,222
                                                                    --------------
                                                                       200,258,877
                                                                    --------------
CONTAINERS & PACKAGING -- 0.4%
         878,600  Bemis Co., Inc.                                       25,576,046
                                                                    --------------
DISTRIBUTORS -- 0.4%
         534,300  Genuine Parts Company                                 26,715,000
                                                                    --------------
DIVERSIFIED FINANCIAL SERVICES -- 2.9%
       3,804,800  Bank of America Corp.                                191,267,296
         174,600  McGraw-Hill Companies, Inc. (The)                      8,888,886
                                                                    --------------
                                                                       200,156,182
                                                                    --------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 3.4%
       5,395,600  AT&T Inc.                                            228,287,836
         261,243  Iowa Telecommunications Services Inc.(1)               5,185,674
                                                                    --------------
                                                                       233,473,510
                                                                    --------------

Shares/Principal Amount                                                      Value

ELECTRIC UTILITIES -- 5.8%
         290,300  IDACORP, Inc.(1)                                     $ 9,504,422
       2,473,143  Portland General Electric Co.                         68,753,375
       5,987,200  Southern Co.                                         217,215,617
       4,247,349  Westar Energy Inc.(1)(2)                             104,314,891
                                                                    --------------
                                                                       399,788,305
                                                                    --------------
ELECTRONIC EQUIPMENT & INSTRUMENTS -- 0.3%
         202,400  Molex Inc.                                             5,450,632
         674,000  Molex Inc. Cl A(1)                                    17,092,640
                                                                    --------------
                                                                        22,543,272
                                                                    --------------
FOOD & STAPLES RETAILING -- 1.5%
       2,268,816  Wal-Mart Stores, Inc.                                 99,033,818
                                                                    --------------
FOOD PRODUCTS -- 8.6%
       4,367,921  Campbell Soup Co.                                    161,613,077
       3,638,000  H.J. Heinz Co.                                       168,075,600
       1,500,300  Hershey Co. (The)                                     69,628,923
       5,428,756  Kraft Foods Inc. Cl A                                187,346,369
                                                                    --------------
                                                                       586,663,969
                                                                    --------------
GAS UTILITIES -- 2.4%
         930,100  Nicor Inc.(1)                                         39,901,290
       1,719,741  Piedmont Natural Gas Co., Inc.(1)                     43,148,302
       2,411,200  WGL Holdings Inc.(1)(2)                               81,715,568
                                                                    --------------
                                                                       164,765,160
                                                                    --------------
HOUSEHOLD PRODUCTS -- 2.3%
         230,100  Clorox Company                                        14,033,799
       1,456,100  Colgate-Palmolive Co.                                103,849,052
         612,500  Kimberly-Clark Corp.                                  43,034,250
                                                                    --------------
                                                                       160,917,101
                                                                    --------------
INDUSTRIAL CONGLOMERATES -- 6.4%
         533,700  3M Co.                                                49,943,646
       9,482,500  General Electric Co.                                 392,575,500
                                                                    --------------
                                                                       442,519,146
                                                                    --------------
INSURANCE -- 3.2%
         927,700  Allstate Corp.                                        53,055,163
         343,200  American International Group, Inc.                    23,217,480
       5,459,880  Marsh & McLennan Companies, Inc.                     139,226,940
         100,600  MBIA Inc.(1)                                           6,141,630
                                                                    --------------
                                                                       221,641,213
                                                                    --------------
IT SERVICES -- 0.4%
         219,900  International Business Machines Corp.                 25,904,220
                                                                    --------------


------
7


Equity Income

Shares/Principal Amount                                                      Value

MACHINERY -- 0.2%
         275,000  Dover Corp.                                         $ 14,011,250
                                                                    --------------
MULTI-UTILITIES -- 1.6%
       1,373,914  Consolidated Edison, Inc.                             63,612,218
         707,900  Puget Energy, Inc.                                    17,322,313
       1,441,600  XCEL Energy Inc.                                      31,052,064
                                                                    --------------
                                                                       111,986,595
                                                                    --------------
OIL, GAS & CONSUMABLE FUELS -- 9.0%
       2,037,800  BP plc ADR                                           141,321,430
       9,364,800  BP plc ORD                                           108,703,274
       3,002,679  Exxon Mobil Corp.                                    277,927,967
       2,109,000  Royal Dutch Shell plc ORD                             87,051,447
                                                                    --------------
                                                                       615,004,118
                                                                    --------------
PAPER & FOREST PRODUCTS -- 0.3%
         225,200  Weyerhaeuser Co.                                      16,281,960
                                                                    --------------
PHARMACEUTICALS -- 7.7%
       1,945,600  Abbott Laboratories                                  104,323,072
       2,020,700  Bristol-Myers Squibb Co.                              58,236,574
       2,162,800  Johnson & Johnson                                    142,095,961
       1,826,041  Merck & Co., Inc.                                     94,388,059
       5,305,396  Pfizer Inc.                                          129,610,824
                                                                    --------------
                                                                       528,654,490
                                                                    --------------
REAL ESTATE INVESTMENT TRUSTS -- 0.6%
         837,550  Rayonier, Inc.                                        40,235,902
                                                                    --------------
THRIFTS & MORTGAGE FINANCE -- 4.4%
       4,177,000  Freddie Mac                                          246,484,770
       1,253,782  People's United Financial, Inc.                       21,665,353
       1,402,573  Washington Federal, Inc.(1)                           36,831,567
                                                                    --------------
                                                                       304,981,690
                                                                    --------------
TOBACCO -- 2.0%
       2,665,200  UST Inc.                                             132,193,920
                                                                    --------------
TOTAL COMMON STOCKS
(Cost $4,863,333,001)                                                5,397,810,740
                                                                    --------------
Convertible Bonds -- 14.1%

AIRLINES -- 0.1%
       $ 453,900  Morgan Stanley, (convertible into Southwest
                  Airlines Co.), 3.75%, 11/9/07 (Acquired
                  5/2/07, Cost $6,631,479)(3)(4)                         6,822,117
                                                                    --------------
BIOTECHNOLOGY -- 0.2%
         185,000  Morgan Stanley, (convertible into Amgen Inc.),
                  3.40%, 11/23/07 (Acquired 5/16/07, Cost
                  $10,054,750)(3)(4)                                    10,513,550
                                                                    --------------

Shares/Principal Amount                                                      Value

CAPITAL MARKETS -- 0.4%
       $ 781,000  Deutsche Bank AG (London), (convertible into
                  Schwab (Charles) Corp.), 15.75%, 2/1/08
                  (Acquired 8/2/07, Cost $15,042,060)(3)(4)           $ 16,003,082
         100,000  Natixis Financial Products, (convertible into
                  Bear Stearns Companies Inc. (The)), 15.00%,
                  3/13/08 (Acquired 9/6/07, Cost
                  $10,806,000)(3)(4)                                    11,697,650
                                                                    --------------
                                                                        27,700,732
                                                                    --------------
COMMERCIAL SERVICES & SUPPLIES -- 0.5%
      28,318,000  Waste Connections Inc., 3.75%, 4/1/26                 31,857,750
                                                                    --------------
COMMUNICATIONS EQUIPMENT -- 0.2%
         688,000  Credit Suisse New York, (convertible into
                  Motorola, Inc.), 5.85%, 10/26/07(4)                   12,810,560
                                                                    --------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.7%
         464,800  Bank of America N.A., (convertible into
                  Verizon Communications Inc.), 6.15%,
                  12/13/07(4)                                           20,736,586
         577,700  Natixis Financial Products, (convertible into
                  Verizon Communications Inc.), 12.16%, 2/4/08
                  (Acquired 7/30/07, Cost $23,864,787)(3)(4)            25,057,738
                                                                    --------------
                                                                        45,794,324
                                                                    --------------
ELECTRONIC EQUIPMENT & INSTRUMENTS -- 0.2%
         500,000  Credit Suisse New York, (convertible into
                  Molex Inc.), 5.61%, 12/14/07(4)                       13,682,500
                                                                    --------------
FOOD & STAPLES RETAILING -- 1.3%
         514,000  Bank of America N.A., (convertible into
                  Wal-Mart Stores, Inc.), 4.84%, 11/7/07
                  (Acquired 5/2/07, Cost $24,954,700)(3)(4)             22,721,881
       1,137,000  Bank of America N.A., (convertible into
                  Wal-Mart Stores, Inc.), 9.40%, 12/15/08(4)            50,705,652
         422,500  Wachovia Bank N.A., (convertible into Wal-Mart
                  Stores, Inc.), 4.10%, 12/5/07 (Acquired
                  5/30/07, Cost $19,730,750)(3)(4)                      18,566,763
                                                                    --------------
                                                                        91,994,296
                                                                    --------------


------
8


Equity Income

Shares/Principal Amount                                                      Value

FOOD PRODUCTS -- 0.3%
       $ 189,000  Deutsche Bank AG (London), (convertible into
                  Hershey Co. (The)), 5.31%, 11/20/07 (Acquired
                  5/10/07, Cost $10,001,880)(3)(4)                     $ 8,885,835
         227,000  Deutsche Bank AG (London), (convertible into
                  Hershey Co. (The)), 5.91%, 1/18/08 (Acquired
                  7/19/07, Cost $10,998,150)(3)(4)                      10,762,978
                                                                    --------------
                                                                        19,648,813
                                                                    --------------
HEALTH CARE PROVIDERS & SERVICES -- 1.8%
       3,017,000  LifePoint Hospitals Inc., 3.50%, 5/15/14               2,700,215
     126,287,000  Lincare Holdings Inc., 3.00%, 6/15/33                125,339,848
                                                                    --------------
                                                                       128,040,063
                                                                    --------------
INSURANCE -- 1.1%
         611,700  Allegro Investment Corp. SA (convertible into
                  Marsh & McLennan Companies, Inc.), 11.70%,
                  2/8/08 (Acquired 8/3/07, Cost
                  $16,944,090)(3)(4)                                    16,444,020
         861,400  Deutsche Bank AG (London), (convertible into
                  Marsh & McLennan Companies, Inc.), 7.28%,
                  3/6/08 (Acquired 9/6/07, Cost
                  $22,999,380)(3)(4)                                    22,451,098
         743,000  Lehman Brothers Holdings Inc., (convertible
                  into Marsh & McLennan Companies, Inc.),
                  12.50%, 2/14/08 (Acquired 8/7/07, Cost
                  $19,793,520)(3)(4)                                    19,459,170
         344,000  Morgan Stanley, (convertible into American
                  International Group, Inc.), 3.30%, 11/19/07
                  (Acquired 5/11/07, Cost $25,019,120)(3)(4)            23,376,518
                                                                    --------------
                                                                        81,730,806
                                                                    --------------
LIFE SCIENCES TOOLS & SERVICES -- 0.4%
      25,000,000  Invitrogen Corp., 3.25%, 6/15/25                      27,000,000
                                                                    --------------

Shares/Principal Amount                                                      Value

OIL, GAS & CONSUMABLE FUELS -- 4.4%
    $ 40,258,000  Devon Energy Corporation, (convertible into
                  Chevron Corp.), 4.90%, 8/15/08(4)                   $ 70,501,823
      40,257,000  Devon Energy Corporation, (convertible into
                  Chevron Corp.), 4.95%, 8/15/08(4)                     70,500,072
     135,390,000  Peabody Energy Corp., 4.75%, 12/15/66(1)(5)          142,836,449
      19,686,000  St. Mary Land & Exploration Co., 3.50%, 4/1/27        19,218,458
                                                                    --------------
                                                                       303,056,802
                                                                    --------------
PHARMACEUTICALS -- 0.4%
         821,700  Wachovia Bank N.A. (convertible into
                  Bristol-Myers Squibb Co.), 10.75%, 1/31/08
                  (Acquired 7/26/07, Cost $24,922,161)(3)(4)            24,277,127
                                                                    --------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.2%
      76,143,000  Intel Corp., 2.95%, 12/15/35                          79,188,720
                                                                    --------------
SPECIALTY RETAIL -- 0.3%
         840,000  Morgan Stanley, (convertible into Lowe's
                  Companies, Inc.), 9.00%, 4/2/08 (Acquired
                  9/25/07, Cost $24,194,352)(3)(4)(6)                   23,973,601
                                                                    --------------
WIRELESS TELECOMMUNICATION SERVICES -- 0.6%
       2,272,700  Credit Suisse New York, (convertible into
                  Sprint Nextel Corp.), 5.18%, 3/14/08(4)               42,454,036
                                                                    --------------
TOTAL CONVERTIBLE BONDS
(Cost $887,789,072)                                                    970,545,797
                                                                    --------------

Convertible Preferred Stocks -- 5.5%

AEROSPACE & DEFENSE -- 1.2%
         574,500  Northrop Grumman Corp., 7.00%, 4/4/21                 82,986,525
                                                                    --------------
HOUSEHOLD DURABLES -- 0.7%
       1,038,900  Newell Financial Trust I, 5.25%, 12/1/27              48,698,438
                                                                    --------------
THRIFTS & MORTGAGE FINANCE -- 3.6%
           2,520  Fannie Mae, 5.375%, 1/5/08                           247,090,744
                                                                    --------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $366,887,043)                                                    378,775,707
                                                                    --------------


------
9


Equity Income

Shares/Principal Amount                                                      Value

Temporary Cash Investments -- 2.9%

    $ 80,500,000  FHLB Discount Notes, 4.00%, 10/1/07(7)              $ 80,500,000

Repurchase Agreement, Merrill Lynch & Co., Inc., (collateralized
by various U.S. Treasury obligations, 2.375%, 4/15/11, valued at
$121,825,870), in a joint trading account at 3.75%, dated
9/28/07, due 10/1/07 (Delivery value $119,237,250)                     119,200,000
                                                                    --------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $199,700,000)                                                    199,700,000
                                                                    --------------

Shares/Principal Amount                                                      Value

Temporary Cash Investments -- Securities Lending Collateral(8) -- 2.1%

Repurchase Agreement, Lehman Brothers, Inc., (collateralized by
various U.S. Government Agency obligations in a pooled account
at the lending agent), 5.15%, dated 9/28/07, due 10/1/07
(Delivery value $141,540,197)
(Cost $141,479,479)                                                  $ 141,479,479
                                                                    --------------
TOTAL INVESTMENT SECURITIES -- 103.3%
(Cost $6,459,188,595)                                                7,088,311,723
                                                                    --------------
OTHER ASSETS AND LIABILITIES -- (3.3)%                               (226,952,862)
                                                                    --------------
TOTAL NET ASSETS -- 100.0%                                          $6,861,358,861
                                                                    ==============

Forward Foreign Currency Exchange Contracts
                                                                 Unrealized Gain
       Contracts to Sell         Settlement Date      Value           (Loss)

     148,601,745  GBP for USD       10/31/07       $303,755,876      $(4,238,657)

   1,366,285,050  JPY for USD       10/31/07         11,949,661          (65,511)
                                                   ------------     -------------
                                                   $315,705,537      $(4,304,168)
                                                   ============     =============

(Value on Settlement Date $311,401,369)

Notes to Schedule of Investments

ADR = American Depositary Receipt

FHLB = Federal Home Loan Bank

GBP = British Pound

JPY = Japanese Yen

ORD = Foreign Ordinary Share

USD = United States Dollar

(1) Security, or a portion thereof, was on loan as of September 30, 2007.

(2) Affiliated Company: the fund's holding represents ownership of 5% or more
of the voting securities of the company; therefore, the company is affiliated
as defined in the Investment Company Act of 1940.

(3) Security was purchased under Rule 144A of the Securities Act of 1933 or is
a private placement and, unless registered under the Act or exempted from
registration, may only be sold to qualified institutional investors. The
aggregate value of restricted securities at September 30, 2007, was
$261,013,128, which represented 3.8% of total net assets.

(4) Equity-linked debt security. The aggregated value of these securities at
September 30, 2007, was $542,404,357, which represented 7.9% of total net
assets.

(5) Security, or a portion thereof, has been segregated for when-issued
securities.

(6) When-issued security.

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

(8) Investments represent purchases made by the lending agent with cash
collateral received through securities lending transactions.

See Notes to Financial Statements.


------
10


PERFORMANCE
Value

Total Returns as of September 30, 2007
                                                 Average Annual Returns
                          6                             10        Since     Inception
                          months(1)   1 year   5 years  years   Inception      Date

INVESTOR CLASS              3.90%     12.11%   15.76%   8.76%     12.40%      9/1/93

RUSSELL 3000 VALUE
INDEX(2)                    3.90%     13.73%   18.10%   8.84%   12.02%(3)       --

S&P 500 INDEX(2)            8.44%     16.44%   15.45%   6.57%   10.84%(3)       --

LIPPER MULTI-CAP VALUE
FUNDS INDEX(2)              4.13%     12.73%   16.62%   7.49%   10.79%(3)       --

Institutional Class         4.00%     12.32%   16.01%   8.99%     9.42%      7/31/97

A Class(4)
 No sales charge*           3.64%     11.69%   15.44%   8.48%     10.76%
 With sales charge*         -2.27%     5.31%   14.09%   7.85%     10.16%     10/2/96

B Class
 No sales charge*           3.26%     10.88%     --       --      14.65%
 With sales charge*         -1.74%     6.88%     --       --      14.39%     1/31/03

C Class
 No sales charge*           3.28%     10.95%   14.59%     --      8.09%
 With sales charge*         2.28%     10.95%   14.59%     --      8.09%       6/4/01

R Class                     3.64%     11.56%     --       --      10.58%     7/29/05

* Sales charges include initial sales charges and contingent deferred sales
charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial
sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B
Class shares redeemed within six years of purchase are subject to a CDSC that
declines from 5.00% during the first year after purchase to 0.00% the sixth
year after purchase. C Class shares redeemed within 12 months of purchase are
subject to a maximum CDSC of 1.00%. Please see the Share Class Information
pages for more about the applicable sales charges for each share class. The
SEC requires that mutual funds provide performance information net of maximum
sales charges in all cases where charges could be applied.

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

(2) Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All
rights reserved. Any copying, republication or redistribution of Lipper
content, including by caching, framing or similar means, is expressly
prohibited without the prior written consent of Lipper. Lipper shall not be
liable for any errors or delays in the content, or for any actions taken in
reliance thereon.

  The data contained herein has been obtained from company reports, financial
reporting services, periodicals and other resources believed to be reliable.
Although carefully verified, data on compilations is not guaranteed by Lipper
and may be incomplete. No offer or solicitations to buy or sell any of the
securities herein is being made by Lipper.

(3) Since 8/31/93, the date nearest the Investor Class's inception for which
data are available.

(4) Prior to September 4, 2007, the A Class was referred to as the Advisor
Class. Performance, with sales charge, prior to that date has been adjusted to
reflect the A Class's current sales charge.

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-2021 or visit
americancentury.com. International investing involves special risks, such as
political instability and currency fluctuations.

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


------
11


Value

Growth of $10,000 Over 10 Years
$10,000 investment made September 30, 1997

One-Year Returns Over 10 Years
Periods ended September 30
               1998     1999     2000      2001      2002     2003     2004    2005     2006     2007

Investor
Class         -5.98%   12.04%    2.95%    12.36%    -8.55%   23.02%   19.56%   9.96%   14.69%   12.11%

Russell
3000 Value
Index          1.96%   17.64%    9.35%    -7.98%   -15.89%   24.89%   20.89%  16.78%   14.55%   13.73%

S&P 500
Index          9.05%   27.80%   13.28%   -26.62%   -20.49%   24.40%   13.87%  12.25%   10.79%   16.44%

Lipper
Multi-Cap
Value Funds
Index         -7.19%   15.36%   10.61%    -6.04%   -14.25%   27.08%   17.61%  15.42%   10.94%   12.73%

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-2021 or visit
americancentury.com. International investing involves special risks, such as
political instability and currency fluctuations.

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


------
12


PORTFOLIO COMMENTARY
Value

Portfolio Managers: Scott Moore, Michael Liss, and Phil Davidson

PERFORMANCE SUMMARY

Value gained 3.90%* for the six months ended September 30, 2007. By
comparison, the Lipper Multi-Cap Value Funds Index and the median for
Morningstar's Large Cap Value category (whose performance, like Value's,
reflects fund operating expenses) advanced 4.13% and 5.54%,** respectively.
Two market indices -- the Russell 3000 Value Index and the S&P 500 Index --
gained 3.90% and 8.44%, respectively. The portfolio's returns reflect
operating expenses, while the indices' returns do not.

The portfolio's return was achieved in the challenging market environment
described in the Market Perspective on page 2. Overall, growth stocks
outperformed value across the capitalization spectrum and investors favored
stocks with lower dividend yields. Against that market backdrop, Value
benefited from strong stock selection. In addition, during the reporting
period, the portfolio's small portion of international holdings also
contributed to results.

Over time, our disciplined investment approach has provided longer-term
investors with solid performance. Since Value's inception on September 1,
1993, the portfolio has produced an average annualized return of 12.40%,
topping the returns for that period for the Lipper Multi-Cap Value Funds
Index, Morningstar's Large Cap Value category median, the Russell 3000 Value
Index, and the S&P 500 (see the performance information on pages 11 - 12).

INFORMATION TECHNOLOGY CONTRIBUTED

Strong stock selection in the information technology sector lifted results.
One of our top holdings was Intel Corp., the largest semiconductor
manufacturer in the world. The company's stock rose 36% over the period as it
leveraged its technology leadership and superior product line in response to
better-than-expected global demand for computing products. Intel is also
moving into the mobile internet device market. Meanwhile, technology giant IBM
continued to gain market share for virtually all its products and services and
appears well-positioned to take advantage of significant technology trends.

CONSUMER STAPLES OFFERED REWARDS

Another positive for performance was our position in consumer staples
companies. Especially beneficial was our overweight allocation to food and
beverage retailers,

Top Ten Holdings as of September 30, 2007
                                   % of net       % of net
                                 assets as of   assets as of
                                    9/30/07        3/31/07
Freddie Mac                          4.2%           3.6%
SunTrust Banks, Inc.                 3.7%           1.5%
Bank of America Corp.                3.7%           4.7%
Kraft Foods Inc. Cl A                3.3%           3.7%
BP plc ADR                           3.1%           3.0%
Ambac Financial Group, Inc.          3.0%           1.3%
MGIC Investment Corp.                3.0%           2.3%
General Electric Co.                 2.7%           4.9%
Pfizer Inc.                          2.5%           2.1%
Johnson & Johnson                    2.2%           1.1%

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

** The median returns for Morningstar's Large Cap Value category were 14.37%,
15.93% and 7.26% for the one-, five- and ten-year periods ended September 30,
2007, respectively, and 10.72% since the fund's inception. ©2007 Morningstar,
Inc. All Rights Reserved. The information contained herein: (1) is proprietary
to Morningstar and/or its content providers: (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or timely.
Neither Morningstar nor its content providers are responsible for any damages
or losses arising from any use of this information.


------
13


Value

which also provided two of the portfolio's strongest contributors -- Coca-Cola
Enterprises and Kraft.

Coca-Cola Enterprises manufactures and distributes Coca-Cola and other
beverages in the United States, Great Britain, and parts of Europe. Its stock
price has responded well to the company's cost-cutting efforts, additional
brands to distribute, and -- despite slowing European sales -- strong
earnings. Kraft, the largest branded food company in the U.S., added to
results as its stock began to trade on its own fundamentals after the
company's spinoff from Altria Group. Kraft has invested in new product
development, improved marketing, and is considering the divestiture of
non-core businesses.

ENERGY POSITION HAMPERED RESULTS

The portfolio's underweight position in the energy sector -- the best
performer in the benchmark -- was a drag on results. Because of valuations, we
did not own some major oil refiners, such as ConocoPhillips and Occidental
Petroleum, that boosted the benchmark's performance. Our relative progress was
also slowed by an underweight position in Exxon Mobil, which was up more than
23%.

ALLOCATION TO FINANCIALS DETRACTED

The portfolio's allocation to the financials sector slowed its progress.
Detracting was our overweight position in thrifts -- specifically MGIC
Investment Corporation, the nation's largest private mortgage insurer. The
company's stock was hurt by the housing slowdown and by significant financial
losses from a joint venture involved in restructuring subprime mortgages.

The portfolio's mix of insurance stocks was also a drag on results. A top
detractor was Ambac Financial Group, a leading municipal bond insurer. Its
stock declined on concern about bond insurers in general and fears about the
company's exposure to subprime loans.

STARTING POINT FOR NEXT REPORTING PERIOD

Your management team follows a disciplined, bottom-up process, selecting
securities one at a time for the portfolio. As of September 30, 2007, we
continued to see opportunities in consumer staples and health care companies,
reflected by our overweight positions in these sectors relative to the
benchmark. Our valuation work contributed to our smaller weightings in
financials, energy, and telecommunications stocks.

Top Five Industries as of September 30, 2007
                                       % of net       % of net
                                     assets as of   assets as of
                                        9/30/07        3/31/07
Insurance                                9.8%           8.4%
Food Products                            9.0%           8.7%
Commercial Banks                         7.9%           6.4%
Thrifts & Mortgage Finance               7.2%           7.1%
Oil, Gas & Consumable Fuels              6.3%           6.5%

Types of Investments in Portfolio
                                       % of net       % of net
                                     assets as of   assets as of
                                        9/30/07        3/31/07
Domestic Common Stocks                   90.4%          92.4%
Foreign Common Stocks(1)                 7.6%           5.1%
TOTAL COMMON STOCKS                      98.0%          97.5%
Temporary Cash Investments               1.0%           2.3%
Other Assets and Liabilities(2)          1.0%           0.2%

(1) Includes depositary shares, dual listed securities and foreign ordinary
shares.

(2) Includes securities lending collateral and other assets and liabilities.


------
14


SCHEDULE OF INVESTMENTS
Value

SEPTEMBER 30, 2007 (UNAUDITED)

Shares                                                                       Value

Common Stocks -- 98.0%

AIR FREIGHT & LOGISTICS -- 1.5%
           599,500  United Parcel Service, Inc. Cl B                  $ 45,022,450
                                                                    --------------
AIRLINES -- 1.8%
         3,669,800  Southwest Airlines Co.                              54,313,040
                                                                    --------------
AUTO COMPONENTS -- 0.8%
           395,800  Autoliv, Inc.                                       23,649,050
                                                                    --------------
AUTOMOBILES -- 1.4%
           692,700  Toyota Motor Corp. ORD                              40,926,374
                                                                    --------------
BEVERAGES -- 1.7%
           875,200  Anheuser-Busch Companies, Inc.                      43,751,248
           347,000  Coca-Cola Enterprises Inc.                           8,404,340
                                                                    --------------
                                                                        52,155,588
                                                                    --------------
BIOTECHNOLOGY -- 0.7%
           380,700  Amgen Inc.(1)                                       21,536,199
                                                                    --------------
BUILDING PRODUCTS -- 0.8%
         1,037,300  Masco Corp.                                         24,034,241
                                                                    --------------
CAPITAL MARKETS -- 1.4%
           182,600  Bear Stearns Companies Inc. (The)                   22,425,106
           268,400  Merrill Lynch & Co., Inc.                           19,131,552
                                                                    --------------
                                                                        41,556,658
                                                                    --------------
CHEMICALS -- 0.9%
           168,500  du Pont (E.I.) de Nemours & Co.                      8,350,860
           261,300  Minerals Technologies Inc.                          17,507,100
                                                                    --------------
                                                                        25,857,960
                                                                    --------------
COMMERCIAL BANKS -- 7.9%
           567,800  BB&T Corporation                                    22,933,442
           884,700  Marshall & Ilsley Corp.                             38,723,319
         1,990,300  South Financial Group Inc. (The)(2)                 45,259,422
         1,484,400  SunTrust Banks, Inc.                               112,324,548
           615,300  U.S. Bancorp                                        20,015,709
                                                                    --------------
                                                                       239,256,440
                                                                    --------------
COMMERCIAL SERVICES & SUPPLIES -- 2.9%
           147,800  Avery Dennison Corp.                                 8,427,556
           735,100  Pitney Bowes, Inc.                                  33,388,242
           597,700  Republic Services, Inc.                             19,550,767
           668,000  Waste Management, Inc.                              25,210,320
                                                                    --------------
                                                                        86,576,885
                                                                    --------------

Shares                                                                       Value

COMMUNICATIONS EQUIPMENT -- 0.3%
           452,600  Motorola, Inc.                                     $ 8,386,678
                                                                    --------------
CONTAINERS & PACKAGING -- 1.6%
         1,658,200  Bemis Co., Inc.                                     48,270,202
                                                                    --------------
DISTRIBUTORS -- 0.2%
           147,800  Genuine Parts Company                                7,390,000
                                                                    --------------
DIVERSIFIED -- 1.4%
           273,000  Standard and Poor's 500 Depositary Receipt(2)       41,670,720
                                                                    --------------
DIVERSIFIED FINANCIAL SERVICES -- 4.6%
         2,192,100  Bank of America Corp.                              110,196,867
           633,200  Citigroup Inc.                                      29,551,444
                                                                    --------------
                                                                       139,748,311
                                                                    --------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 2.5%
         1,254,700  AT&T Inc.                                           53,086,357
           528,400  Verizon Communications Inc.                         23,397,552
                                                                    --------------
                                                                        76,483,909
                                                                    --------------
ELECTRIC UTILITIES -- 1.5%
         1,009,800  Duke Energy Corp.                                   18,873,162
           819,100  IDACORP, Inc.(2)                                    26,817,334
                                                                    --------------
                                                                        45,690,496
                                                                    --------------
ELECTRICAL EQUIPMENT -- 0.6%
           329,500  Hubbell Inc. Cl B                                   18,821,040
                                                                    --------------
ELECTRONIC EQUIPMENT & INSTRUMENTS -- 2.7%
         1,532,800  Molex Inc.                                          41,278,304
         1,097,700  Tyco Electronics Ltd.                               38,891,511
                                                                    --------------
                                                                        80,169,815
                                                                    --------------
FOOD & STAPLES RETAILING -- 1.7%
         1,181,200  Wal-Mart Stores, Inc.                               51,559,380
                                                                    --------------
FOOD PRODUCTS -- 9.0%
           630,500  Campbell Soup Co.                                   23,328,500
         1,281,700  ConAgra Foods, Inc.                                 33,490,821
           304,700  General Mills, Inc.                                 17,675,647
         1,165,700  H.J. Heinz Co.                                      53,855,340
           526,100  Hershey Co. (The)                                   24,416,301
         2,866,900  Kraft Foods Inc. Cl A                               98,936,719
           671,100  Unilever N.V. New York Shares                       20,703,435
                                                                    --------------
                                                                       272,406,763
                                                                    --------------
GAS UTILITIES -- 0.6%
           553,200  WGL Holdings Inc.(2)                                18,747,948
                                                                    --------------


------
15


Value

Shares                                                                       Value

HEALTH CARE EQUIPMENT & SUPPLIES -- 2.2%
           376,200  Beckman Coulter, Inc.                             $ 27,748,512
           579,400  Covidien Ltd.(1)                                    24,045,100
         1,010,320  Symmetry Medical Inc.(1)                            16,872,344
                                                                    --------------
                                                                        68,665,956
                                                                    --------------
HEALTH CARE PROVIDERS & SERVICES -- 1.2%
           489,700  LifePoint Hospitals Inc.(1)                         14,695,897
           398,500  Universal Health Services, Inc. Cl B                21,686,370
                                                                    --------------
                                                                        36,382,267
                                                                    --------------
HOTELS, RESTAURANTS & LEISURE -- 2.3%
           659,500  International Speedway Corp.                        30,244,670
         1,052,200  Speedway Motorsports Inc.(2)                        38,931,400
                                                                    --------------
                                                                        69,176,070
                                                                    --------------
HOUSEHOLD PRODUCTS -- 2.3%
           333,700  Clorox Company                                      20,352,363
           707,500  Kimberly-Clark Corp.                                49,708,950
                                                                    --------------
                                                                        70,061,313
                                                                    --------------
INDUSTRIAL CONGLOMERATES -- 2.7%
         1,968,600  General Electric Co.                                81,500,040
                                                                    --------------
INSURANCE -- 9.8%
           258,100  Allstate Corp.                                      14,760,739
         1,439,900  Ambac Financial Group, Inc.(2)                      90,584,109
           709,200  American International Group, Inc.                  47,977,380
           501,600  Chubb Corp.                                         26,905,824
         1,653,300  Genworth Financial Inc. Cl A                        50,805,909
         2,045,300  Marsh & McLennan Companies, Inc.                    52,155,150
           205,800  MBIA Inc.                                           12,564,090
                                                                    --------------
                                                                       295,753,201
                                                                    --------------
IT SERVICES -- 0.4%
            97,400  International Business Machines Corp.               11,473,720
                                                                    --------------
LEISURE EQUIPMENT & PRODUCTS -- 0.6%
           204,400  Polaris Industries Inc.(2)                           8,915,928
           304,300  RC2 Corp.(1)                                         8,426,067
                                                                    --------------
                                                                        17,341,995
                                                                    --------------
METALS & MINING -- 0.4%
           270,900  Newmont Mining Corporation                          12,117,357
                                                                    --------------

Shares                                                                       Value

MULTI-UTILITIES -- 4.7%
           329,600  Ameren Corp.                                      $ 17,304,000
           308,200  Consolidated Edison, Inc.                           14,269,660
         2,135,500  Puget Energy, Inc.                                  52,255,685
           844,500  Wisconsin Energy Corp.                              38,027,835
           930,900  XCEL Energy Inc.                                    20,051,586
                                                                    --------------
                                                                       141,908,766
                                                                    --------------
OIL, GAS & CONSUMABLE FUELS -- 6.3%
           159,800  Apache Corp.                                        14,391,590
         1,338,300  BP plc ADR                                          92,811,105
            90,700  Chevron Corp.                                        8,487,706
           334,700  Equitable Resources Inc.                            17,360,889
           481,300  Exxon Mobil Corp.                                   44,549,128
           139,500  Royal Dutch Shell plc ADR                           11,464,110
                                                                    --------------
                                                                       189,064,528
                                                                    --------------
PAPER & FOREST PRODUCTS -- 0.8%
           327,000  Weyerhaeuser Co.                                    23,642,100
                                                                    --------------
PERSONAL PRODUCTS -- 0.3%
           212,100  Estee Lauder Companies, Inc. (The) Cl A              9,005,766
                                                                    --------------
PHARMACEUTICALS -- 6.0%
           223,500  Abbott Laboratories                                 11,984,070
           412,700  Bristol-Myers Squibb Co.                            11,894,014
           253,500  Eli Lilly and Company                               14,431,755
         1,004,600  Johnson & Johnson                                   66,002,220
         3,121,700  Pfizer Inc.                                         76,263,130
                                                                    --------------
                                                                       180,575,189
                                                                    --------------
ROAD & RAIL -- 0.5%
           965,800  Heartland Express, Inc.(2)                          13,791,624
                                                                    --------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.7%
           781,800  Intel Corp.                                         20,217,348
                                                                    --------------
SPECIALTY RETAIL -- 1.1%
           350,000  Home Depot, Inc. (The)                              11,354,000
           827,500  Lowe's Companies, Inc.                              23,186,550
                                                                    --------------
                                                                        34,540,550
                                                                    --------------
THRIFTS & MORTGAGE FINANCE -- 7.2%
         2,136,600  Freddie Mac                                        126,080,766
         2,788,500  MGIC Investment Corp.(2)                            90,096,435
                                                                    --------------
                                                                       216,177,201
                                                                    --------------
TOTAL COMMON STOCKS
(Cost $2,774,355,709)                                                2,955,625,138
                                                                    --------------


------
16


Value

Shares                                                                       Value

Temporary Cash Investments -- 1.0%

Repurchase Agreement, Bank of America Securities, LLC,
(collateralized by various U.S. Treasury obligations, 0.875%,
4/15/10, valued at $34,612,630), in a joint trading account at
3.80%, dated 9/28/07, due 10/1/07 (Delivery value $30,809,753)
(Cost $30,800,000)                                                    $ 30,800,000
                                                                    --------------

Temporary Cash Investments -- Securities Lending Collateral(3) -- 5.9%

Repurchase Agreement, Citigroup Global Markets Inc.,
(collateralized by various U.S. Government Agency obligations in
a pooled account at the lending agent), 5.00%, dated 9/28/07,
due 10/1/07 (Delivery value $165,068,750)                              165,000,000

Shares                                                                       Value

Repurchase Agreement, Lehman Brothers, Inc., (collateralized by
various U.S. Government Agency obligations in a pooled account
at the lending agent), 5.15%, dated 9/28/07, due 10/1/07
(Delivery value $13,135,801)                                          $ 13,130,166
                                                                    --------------
TOTAL TEMPORARY CASH INVESTMENTS - SECURITIES LENDING COLLATERAL
(Cost $178,130,166)                                                    178,130,166
                                                                    --------------
TOTAL INVESTMENT SECURITIES -- 104.9%
(Cost $2,983,285,875)                                                3,164,555,304
                                                                    --------------
OTHER ASSETS AND LIABILITIES -- (4.9)%                               (148,635,258)
                                                                    --------------
TOTAL NET ASSETS -- 100.0%                                          $3,015,920,046
                                                                    ==============

Forward Foreign Currency Exchange Contracts
                                    Settlement                      Unrealized
        Contracts to Sell              Date          Value         Gain (Loss)

       22,810,755  Euro for USD      10/31/07      $ 32,574,933       $ (336,721)

       47,060,571  GBP for USD       10/31/07        96,196,212       (1,342,337)

    3,679,622,400  JPY for USD       10/31/07        32,182,332         (176,431)
                                                   ------------      ------------
                                                   $160,953,477      $(1,855,489)
                                                   ============      ============

(Value on Settlement Date $159,097,988)

Notes to Schedule of Investments

ADR = American Depositary Receipt

GBP = British Pound

JPY = Japanese Yen

ORD = Foreign Ordinary Share

USD = United States Dollar

(1) Non-income producing.

(2) Security, or a portion thereof, was on loan as of September 30, 2007.

(3) Investments represent purchases made by the lending agent with cash
collateral received through securities lending transactions.

See Notes to Financial Statements.


------
17


PERFORMANCE
Large Company Value

Total Returns as of September 30, 2007
                                                    Average Annual
                                                        Returns
                                                              Since     Inception
                           6 months(1)  1 year   5 years    Inception      Date

INVESTOR CLASS                5.44%     13.15%    16.25%      7.89%      7/30/99

RUSSELL 1000 VALUE
INDEX(2)                      4.67%     14.45%    18.07%      7.14%         --

S&P 500 INDEX(2)              8.44%     16.44%    15.45%      3.38%         --

Institutional Class           5.54%     13.38%    16.48%      8.82%      8/10/01

Advisor Class                 5.31%     12.87%    15.96%      9.80%      10/26/00

A Class
 No sales charge*             5.17%     12.71%      --       15.51%
 With sales charge*          -0.86%      6.20%      --       14.07%      1/31/03

B Class
 No sales charge*             4.90%     11.99%      --       14.72%
 With sales charge*          -0.10%      7.99%      --       14.46%      1/31/03

C Class
 No sales charge*             4.91%     12.03%    15.11%      8.88%
 With sales charge*           3.91%     12.03%    15.11%      8.88%      11/7/01

R Class                       5.04%     12.59%      --       13.20%      8/29/03

* Sales charges include initial sales charges and contingent deferred sales
charges (CDSCs), as applicable. A Class shares have a maximum 5.75% initial
sales charge for equity funds and may be subject to a maximum CDSC of 1.00%. B
Class shares redeemed within six years of purchase are subject to a CDSC that
declines from 5.00% during the first year after purchase to 0.00% the sixth
year after purchase. C Class shares redeemed within 12 months of purchase are
subject to a maximum CDSC of 1.00%. Please see the Share Class Information
pages for more about the applicable sales charges for each share class. The
SEC requires that mutual funds provide performance information net of maximum
sales charges in all cases where charges could be applied.

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

(2) Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All
rights reserved. Any copying, republication or redistribution of Lipper
content, including by caching, framing or similar means, is expressly
prohibited without the prior written consent of Lipper. Lipper shall not be
liable for any errors or delays in the content, or for any actions taken in
reliance thereon.

  The data contained herein has been obtained from company reports, financial
reporting services, periodicals and other resources believed to be reliable.
Although carefully verified, data on compilations is not guaranteed by Lipper
and may be incomplete. No offer or solicitations to buy or sell any of the
securities herein is being made by Lipper.

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-2021 or visit
americancentury.com. International investing involves special risks, such as
political instability and currency fluctuations.

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


------
18


Large Company Value

Growth of $10,000 Over Life of Class

$10,000 investment made July 30, 1999

One-Year Returns Over Life of Class
Periods ended September 30
              1999*     2000     2001      2002      2003     2004     2005    2006     2007

Investor
Class         -8.56%   5.67%    4.99%     -13.70%   23.93%   18.84%   12.38%  13.42%   13.15%

Russell
1000 Value
Index         -7.08%   8.91%    -8.91%    -16.95%   24.37%   20.52%   16.69%  14.62%   14.45%

S&P 500
Index         -3.22%   13.28%  -26.62%    -20.49%   24.40%   13.87%   12.25%  10.79%   16.44%

* From 7/30/99, the Investor Class's inception date. Not annualized.

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-2021 or visit
americancentury.com. International investing involves special risks, such as
political instability and currency fluctuations.

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


------
19


PORTFOLIO COMMENTARY
Large Company Value

Portfolio Managers: Chuck Ritter and Brendan Healy

PERFORMANCE SUMMARY

Large Company Value gained 5.44%* for the six months ended September 30, 2007.
By comparison, its benchmark, the Russell 1000 Value Index, advanced 4.67%.
The broader market, as measured by the S&P 500 Index, returned 8.44%. The
portfolio's returns reflect operating expenses, while the indices' returns do
not. The median return for Morningstar's Large Cap Value category (whose
performance, like Large Company Value's, reflects operating expenses) was
5.54%.**

The portfolio's solid return was achieved in the challenging market
environment described in the Market Perspective on page 2. Overall, growth
stocks outperformed value across the capitalization spectrum and investors
favored stocks with lower dividend yields. In the volatility that
characterized the second half of the period, they gravitated toward
higher-quality names. Mega-cap stocks (shares of especially large companies)
found greater favor with investors. The shift benefited the portfolio because
we typically hold a higher percentage of these companies than the benchmark.

Over time, our disciplined investment approach has provided longer-term
investors with solid performance. Since Large Company Value's inception on
July 30, 1999, the portfolio has produced an average annualized return of
7.89%, topping the returns for the Morningstar's Large Cap Value category
median, Russell 1000 Value Index, and the S&P 500 for that period (see
performance information on pages 18 - 19).

INFORMATION TECHNOLOGY CONTRIBUTED

The portfolio benefited from strong stock selection in the information
technology sector, with most of the gains coming from large leading technology
companies, such as Hewlett-Packard, IBM, Intel, and Oracle. Hewlett-Packard
was up 24% over the period. The company continued to gain ground in the PC
market and moved into high-end enterprise printing equipment. Meanwhile, IBM
continued to capture market share for virtually all its products and services.

ENERGY BOOSTED RESULTS

Our holdings in the energy sector, which led all others in the benchmark,
added significantly to total return. Because of valuations, we have been
selective about our investments, and over the period our mix of multi-national
integrated oil companies, such as Chevron and ConocoPhillips, worked in our
favor. A significant performer

Top Ten Holdings as of September 30, 2007
                                 % of net       % of net
                               assets as of   assets as of
                                  9/30/07        3/31/07
Exxon Mobil Corp.                  5.2%           4.8%
Citigroup Inc.                     4.5%           4.6%
Bank of America Corp.              3.4%           3.3%
Chevron Corp.                      3.2%           3.0%
AT&T Inc.                          3.1%           3.1%
Royal Dutch Shell plc ADR          2.9%           2.6%
General Electric Co.               2.4%           1.7%
JPMorgan Chase & Co.               2.3%           2.3%
Freddie Mac                        2.2%           2.3%
ConocoPhillips                     2.2%           1.9%

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

** The median returns for Morningstar's Large Cap Value category were 14.37%
and 15.93% for the one- and five-year periods ended September 30, 2007,
respectively, and 6.19% since the fund's inception. ©2007 Morningstar, Inc.
All Rights Reserved. The information contained herein: (1) is proprietary to
Morningstar and/or its content providers: (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or timely.
Neither Morningstar nor its content providers are responsible for any damages
or losses arising from any use of this information.


------
20


Large Company Value

was Europe's largest integrated oil company, Royal Dutch Shell plc. Royal
Dutch reported robust second-quarter earnings and continues to make capital
investments in unconventional oil projects.

UTILITIES HOLDINGS ADDED VALUE

Utilities stocks continued to trade near historically high price-to-earnings
ratios, making many of them unattractive to us. Strong stock selection,
however, identified two top performers -- PPL Corp. and Exelon. A low-cost
producer of nuclear- and coal-generated energy, PPL produces and delivers
electricity to customers in the U.S., the U.K. and Latin America. The company
reported solid 2006 earnings and reaffirmed its positive outlook for 2007.
Exelon, which distributes electricity to customers in Illinois and
Pennsylvania and gas to customers in the Philadelphia area, is the nation's
largest nuclear generator.

CONSUMER DISCRETIONARY DETRACTED

Holdings in the consumer discretionary sector, particularly among retailers
and media companies, hampered performance. A top detractor was apparel
manufacturer Liz Claiborne. We liquidated our position after the company
reported disappointing first-quarter results and dramatically lowered earnings
guidance. Another detractor was publishing and broadcasting company Gannett,
which experienced a drop in total advertising revenue.

FINANCIALS HELD A TOP DETRACTOR

Although it was a relatively small weighting, MGIC Investment Corporation was
one of our largest detractors. MGIC, the nation's largest private mortgage
insurer, was hampered by the housing slowdown and significant financial losses
from a joint venture involved in restructuring subprime mortgages.

STARTING POINT FOR NEXT REPORTING PERIOD

As bottom-up investment managers, we evaluate each company individually and
build the portfolio one stock at a time. As of September 30, 2007, Large
Company Value was broadly diversified, with continued overweight positions in
the information technology and health care sectors. Our valuation work
contributed to our smaller relative weightings in utilities stocks. We have
also continued to find greater value opportunities among mega-cap stocks and
have maintained our bias toward these firms.

Top Five Industries as of September 30, 2007
                                        % of net       % of net
                                      assets as of   assets as of
                                         9/30/07        3/31/07
Oil, Gas & Consumable Fuels               13.9%          13.1%
Diversified Financial Services            10.2%          10.3%
Pharmaceuticals                           7.5%           7.3%
Insurance                                 6.1%           6.2%
Commercial Banks                          6.0%           6.2%

Types of Investments in Portfolio
                                        % of net       % of net
                                      assets as of   assets as of
                                         9/30/07        3/31/07
Domestic Common Stocks & Futures          93.2%          90.6%
Foreign Common Stocks(1)                  4.4%           5.0%
TOTAL COMMON STOCKS                       97.6%          95.6%
Temporary Cash Investments                2.4%           4.3%
Other Assets and Liabilities(2)           --(3)          0.1%

(1) Includes depositary shares, dual listed securities and foreign ordinary
shares.

(2) Includes securities lending collateral and other assets and liabilities.

(3) Category is less than 0.05% of total net assets.


------
21


SCHEDULE OF INVESTMENTS
Large Company Value

SEPTEMBER 30, 2007 (UNAUDITED)

Shares                                                                       Value

Common Stocks -- 95.4%

AEROSPACE & DEFENSE -- 0.9%
              338,500  Northrop Grumman Corp.                         $ 26,403,000
                                                                    --------------
BEVERAGES -- 2.1%
              605,700  Coca-Cola Company (The)                          34,809,579
              657,100  Pepsi Bottling Group Inc.                        24,424,407
                                                                    --------------
                                                                        59,233,986
                                                                    --------------
BIOTECHNOLOGY -- 0.6%
              274,300  Amgen Inc.(1)                                    15,517,151
                                                                    --------------
CAPITAL MARKETS -- 3.6%
              614,500  Bank of New York Mellon Corp. (The)              27,124,030
              560,100  Merrill Lynch & Co., Inc.                        39,923,928
              584,800  Morgan Stanley                                   36,842,400
                                                                    --------------
                                                                       103,890,358
                                                                    --------------
CHEMICALS -- 2.2%
              531,700  du Pont (E.I.) de Nemours & Co.                  26,351,052
              459,000  PPG Industries, Inc.                             34,677,450
                                                                    --------------
                                                                        61,028,502
                                                                    --------------
COMMERCIAL BANKS -- 6.0%
              467,000  National City Corp.                              11,717,030
              252,600  PNC Financial Services Group                     17,202,060
            1,118,100  U.S. Bancorp                                     36,371,793
              866,000  Wachovia Corp.                                   43,429,900
            1,712,600  Wells Fargo & Co.                                61,002,812
                                                                    --------------
                                                                       169,723,595
                                                                    --------------
COMMERCIAL SERVICES & SUPPLIES -- 1.4%
              113,100  Avery Dennison Corp.                              6,448,962
              456,600  R.R. Donnelley & Sons Company                    16,693,307
              444,100  Waste Management, Inc.                           16,760,334
                                                                    --------------
                                                                        39,902,603
                                                                    --------------
COMMUNICATIONS EQUIPMENT -- 0.3%
              389,300  Motorola, Inc.                                    7,213,729
                                                                    --------------
COMPUTERS & PERIPHERALS -- 1.4%
              802,900  Hewlett-Packard Co.                              39,976,391
                                                                    --------------
CONSUMER FINANCE -- 0.3%
              331,900  Discover Financial Services(1)                    6,903,520
                                                                    --------------
DIVERSIFIED CONSUMER SERVICES -- 0.5%
              697,500  H&R Block, Inc.(2)                               14,773,050
                                                                    --------------
DIVERSIFIED FINANCIAL SERVICES -- 10.2%
            1,894,800  Bank of America Corp.                            95,251,596
            2,718,100  Citigroup Inc.                                  126,853,727
            1,449,100  JPMorgan Chase & Co.                             66,397,762
                                                                    --------------
                                                                       288,503,085
                                                                    --------------

Shares                                                                       Value

DIVERSIFIED TELECOMMUNICATION SERVICES -- 4.6%
            2,079,300  AT&T Inc.                                      $ 87,975,183
              967,400  Verizon Communications Inc.                      42,836,472
                                                                    --------------
                                                                       130,811,655
                                                                    --------------
ELECTRIC UTILITIES -- 2.7%
              541,900  Exelon Corporation                               40,837,584
              737,800  PPL Corporation                                  34,160,140
                                                                    --------------
                                                                        74,997,724
                                                                    --------------
ELECTRONIC EQUIPMENT & INSTRUMENTS -- 0.4%
              283,500  Tyco Electronics Ltd.                            10,044,405
                                                                    --------------
ENERGY EQUIPMENT & SERVICES -- 0.5%
               98,700  National Oilwell Varco, Inc.(1)                  14,262,150
                                                                    --------------
FOOD & STAPLES RETAILING -- 1.6%
              629,900  Kroger Co. (The)                                 17,964,748
              650,400  Wal-Mart Stores, Inc.                            28,389,960
                                                                    --------------
                                                                        46,354,708
                                                                    --------------
FOOD PRODUCTS -- 1.1%
            1,000,700  Unilever N.V. New York Shares                    30,871,595
                                                                    --------------
HEALTH CARE EQUIPMENT & SUPPLIES -- 0.5%
              253,800  Medtronic, Inc.                                  14,316,858
                                                                    --------------
HEALTH CARE PROVIDERS & SERVICES -- 0.3%
              153,000  Quest Diagnostics Inc.                            8,838,810
                                                                    --------------
HOTELS, RESTAURANTS & LEISURE -- 0.7%
              386,900  McDonald's Corporation                           21,074,443
                                                                    --------------
HOUSEHOLD DURABLES -- 0.7%
              673,200  Newell Rubbermaid Inc.                           19,401,624
                                                                    --------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS -- 0.2%
              166,500  NRG Energy Inc.(1)                                7,041,285
                                                                    --------------
INDUSTRIAL CONGLOMERATES -- 2.8%
            1,625,100  General Electric Co.                             67,279,140
              295,600  Tyco International Ltd.                          13,106,904
                                                                    --------------
                                                                        80,386,044
                                                                    --------------
INSURANCE -- 6.1%
              556,700  Allstate Corp.                                   31,837,673
              884,000  American International Group, Inc.               59,802,600
              338,500  Hartford Financial Services Group Inc.
                       (The)                                            31,328,175
              411,600  Loews Corp.                                      19,900,860
              543,500  Marsh & McLennan Companies, Inc.                 13,859,250
              267,000  Torchmark Corp.                                  16,639,440
                                                                    --------------
                                                                       173,367,998
                                                                    --------------


------
22


Large Company Value

Shares                                                                       Value

IT SERVICES -- 1.6%
              216,600  Fiserv, Inc.(1)                                $ 11,016,276
              288,100  International Business Machines Corp.            33,938,180
                                                                    --------------
                                                                        44,954,456
                                                                    --------------
MACHINERY -- 3.5%
              228,400  Caterpillar Inc.                                 17,913,412
              106,300  Deere & Co.                                      15,777,046
              392,400  Dover Corp.                                      19,992,780
              460,600  Ingersoll-Rand Company Ltd. Cl A                 25,088,882
              183,200  Parker-Hannifin Corp.                            20,487,256
                                                                    --------------
                                                                        99,259,376
                                                                    --------------
MEDIA -- 3.2%
              626,600  Gannett Co., Inc.                                27,382,420
            2,185,800  Time Warner Inc.                                 40,131,288
              572,300  Viacom Inc. Cl B(1)                              22,302,531
                                                                    --------------
                                                                        89,816,239
                                                                    --------------
METALS & MINING -- 0.6%
              262,400  Nucor Corp.                                      15,604,928
                                                                    --------------
MULTILINE RETAIL -- 0.3%
              126,000  Kohl's Corp.(1)                                   7,223,580
                                                                    --------------
OFFICE ELECTRONICS -- 0.6%
              929,200  Xerox Corp.(1)                                   16,112,328
                                                                    --------------
OIL, GAS & CONSUMABLE FUELS -- 13.9%
              978,900  Chevron Corp.                                    91,605,462
              710,800  ConocoPhillips                                   62,386,916
              140,500  Devon Energy Corporation                         11,689,600
            1,583,100  Exxon Mobil Corp.                               146,531,736
              999,900  Royal Dutch Shell plc ADR                        82,171,782
                                                                    --------------
                                                                       394,385,496
                                                                    --------------
PAPER & FOREST PRODUCTS -- 1.1%
              408,200  Weyerhaeuser Co.                                 29,512,860
                                                                    --------------
PHARMACEUTICALS -- 7.5%
              722,800  Abbott Laboratories                              38,756,536
              333,000  Eli Lilly and Company                            18,957,690
              810,600  Johnson & Johnson                                53,256,420
              389,000  Merck & Co., Inc.                                20,107,410
            2,045,700  Pfizer Inc.                                      49,976,451
              692,900  Wyeth                                            30,868,695
                                                                    --------------
                                                                       211,923,202
                                                                    --------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.8%
              495,300  Applied Materials, Inc.                          10,252,710
              504,900  Intel Corp.                                      13,056,714
                                                                    --------------
                                                                        23,309,424
                                                                    --------------

Shares                                                                       Value

SOFTWARE -- 2.2%
            1,477,200  Microsoft Corporation                          $ 43,518,312
              925,300  Oracle Corp.(1)                                  20,032,745
                                                                    --------------
                                                                        63,551,057
                                                                    --------------
SPECIALTY RETAIL -- 2.0%
              374,100  Best Buy Co., Inc.                               17,216,082
              844,600  Gap, Inc. (The)                                  15,574,424
              296,400  Home Depot, Inc. (The)                            9,615,216
              709,800  Staples, Inc.                                    15,253,602
                                                                    --------------
                                                                        57,659,324
                                                                    --------------
TEXTILES, APPAREL & LUXURY GOODS -- 0.5%
              191,900  VF Corp.                                         15,495,925
                                                                    --------------
THRIFTS & MORTGAGE FINANCE -- 3.8%
              160,100  Countrywide Financial Corp.                       3,043,501
            1,076,300  Freddie Mac                                      63,512,463
              427,200  MGIC Investment Corp.(2)                         13,802,832
              786,700  Washington Mutual, Inc.                          27,778,377
                                                                    --------------
                                                                       108,137,173
                                                                    --------------
TOBACCO -- 1.2%
              470,800  Altria Group Inc.                                32,734,724
                                                                    --------------
WIRELESS TELECOMMUNICATION SERVICES -- 0.9%
            1,283,700  Sprint Nextel Corp.                              24,390,300
                                                                    --------------
TOTAL COMMON STOCKS
(Cost $2,131,201,427)                                                2,698,908,661
                                                                    --------------

Principal Amount

Temporary Cash Investments -- 2.4%

          $69,100,000  FHLB Discount Notes, 4.00%, 10/1/07(3)
(Cost $69,100,000)                                                      69,100,000
                                                                    --------------

Temporary Cash Investments -- Segregated for Futures Contracts -- 2.2%

           61,600,000  FHLB Discount Notes, 4.00%, 10/1/07(3)
(Cost $61,600,000)                                                      61,600,000
                                                                    --------------

Temporary Cash Investments -- Securities Lending Collateral(4) -- 0.8%

Repurchase Agreement, Lehman Brothers, Inc., (collateralized by
various U.S. Government Agency obligations in a pooled account
at the lending agent), 5.15%, dated 9/28/07, due 10/1/07
(Delivery value $22,311,524)
(Cost $22,301,953)                                                      22,301,953
                                                                    --------------
TOTAL INVESTMENT SECURITIES -- 100.8%
(Cost $2,284,203,380)                                                2,851,910,614
                                                                    --------------
OTHER ASSETS AND LIABILITIES -- (0.8)%                                (23,202,537)
                                                                    --------------
TOTAL NET ASSETS -- 100.0%                                          $2,828,708,077
                                                                    ==============


------
23


Large Company Value

Futures Contracts
                                                       Underlying Face    Unrealized Gain
       Contracts Purchased          Expiration Date    Amount at Value         (Loss)

   800  S&P 500 E-Mini Futures       December 2007       $61,600,000        $ 2,162,751
                                                      ================     ==============

Notes to Schedule of Investments

ADR = American Depositary Receipt

FHLB = Federal Home Loan Bank

(1) Non-income producing.

(2) Security, or a portion thereof, was on loan as of September 30, 2007.

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

(4) Investments represent purchases made by the lending agent with cash
collateral received through securities lending transactions.

See Notes to Financial Statements.


------
24


SHAREHOLDER FEE EXAMPLES (UNAUDITED)

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

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

ACTUAL EXPENSES

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

If you hold Investor Class shares of any American Century fund, or
Institutional Class shares of the American Century Diversified Bond Fund, in
an American Century account (i.e., not a financial intermediary or retirement
plan account), American Century may charge you a $12.50 semiannual account
maintenance fee if the value of those shares is less than $10,000. We will
redeem shares automatically in one of your accounts to pay the $12.50 fee. In
determining your total eligible investment amount, we will include your
investments in all PERSONAL ACCOUNTS (including American Century Brokerage
accounts) registered under your Social Security number. PERSONAL ACCOUNTS
include individual accounts, joint accounts, UGMA/UTMA accounts, personal
trusts, Coverdell Education Savings Accounts and 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 Brokerage accounts, you are currently not subject to this
fee. We will not charge the fee as long as you choose to manage your accounts
exclusively online. If you are subject to the Account Maintenance Fee, your
account value could be reduced by the fee amount.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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

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


------
25


                            Beginning     Ending        Expenses Paid
                             Account      Account          During          Annualized
                              Value        Value          Period(1)         Expense
                              4/1/07      9/30/07     4/1/07 - 9/30/07      Ratio(1)
Equity Income

ACTUAL
Investor Class                $1,000     $1,051.70          $4.92            0.96%
Institutional Class           $1,000     $1,052.80          $3.90            0.76%
A Class                       $1,000     $1,050.40          $6.20            1.21%
C Class                       $1,000     $1,046.50         $10.03            1.96%
R Class                       $1,000     $1,049.20          $7.48            1.46%

HYPOTHETICAL
Investor Class                $1,000     $1,020.20          $4.85            0.96%
Institutional Class           $1,000     $1,021.20          $3.84            0.76%
A Class                       $1,000     $1,018.95          $6.11            1.21%
B Class(2)                    $1,000     $1,015.20          $9.87            1.96%
C Class                       $1,000     $1,015.20          $9.87            1.96%
R Class                       $1,000     $1,017.70          $7.36            1.46%

Value

ACTUAL
Investor Class                $1,000     $1,039.00          $5.05            0.99%
Institutional Class           $1,000     $1,040.00          $4.03            0.79%
A Class                       $1,000     $1,036.40          $6.31            1.24%
B Class                       $1,000     $1,032.60         $10.11            1.99%
C Class                       $1,000     $1,032.80         $10.11            1.99%
R Class                       $1,000     $1,036.40          $7.59            1.49%

HYPOTHETICAL
Investor Class                $1,000     $1,020.05          $5.00            0.99%
Institutional Class           $1,000     $1,021.05          $3.99            0.79%
A Class                       $1,000     $1,018.80          $6.26            1.24%
B Class                       $1,000     $1,015.05         $10.02            1.99%
C Class                       $1,000     $1,015.05         $10.02            1.99%
R Class                       $1,000     $1,017.55          $7.52            1.49%

(1) Expenses are equal to the class's annualized expense ratio listed in the
table above, multiplied by the average account value over the period,
multiplied by 183, the number of days in the most recent fiscal half-year,
divided by 366, to reflect the one-half year period.

(2) The B Class commenced on September 28, 2007, the last business day in the
period. No expenses were paid by the share class during the most recent fiscal
half-year. Therefore, the actual expense example is not presented.


------
26


                       Beginning                      Expenses Paid
                        Account        Ending            During        Annualized
                         Value      Account Value        Period*         Expense
                         4/1/07        9/30/07      4/1/07 - 9/30/07     Ratio*
Large Company Value

ACTUAL
Investor Class           $1,000       $1,054.40           $4.26           0.83%
Institutional Class      $1,000       $1,055.40           $3.24           0.63%
Advisor Class            $1,000       $1,053.10           $5.54           1.08%
A Class                  $1,000       $1,051.70           $5.54           1.08%
B Class                  $1,000       $1,049.00           $9.37           1.83%
C Class                  $1,000       $1,049.10           $9.37           1.83%
R Class                  $1,000       $1,050.40           $6.82           1.33%

HYPOTHETICAL
Investor Class           $1,000       $1,020.85           $4.19           0.83%
Institutional Class      $1,000       $1,021.85           $3.18           0.63%
Advisor Class            $1,000       $1,019.60           $5.45           1.08%
A Class                  $1,000       $1,019.60           $5.45           1.08%
B Class                  $1,000       $1,015.85           $9.22           1.83%
C Class                  $1,000       $1,015.85           $9.22           1.83%
R Class                  $1,000       $1,018.35           $6.71           1.33%

* Expenses are equal to the class's annualized expense ratio listed in the
table above, multiplied by the average account value over the period,
multiplied by 183, the number of days in the most recent fiscal half-year,
divided by 366, to reflect the one-half year period.


------
27


STATEMENT OF ASSETS AND LIABILITIES

SEPTEMBER 30, 2007 (UNAUDITED)
                                                                        Large
                                  Equity Income        Value        Company Value
ASSETS

Investment securities --
unaffiliated, at value (cost
of $6,015,682,707,
$2,805,155,709 and
$2,261,901,427, respectively)
-- including $131,243,244,
$172,891,363 and $21,495,747
of securities on loan,
respectively                      $6,597,720,702   $2,986,425,138   $2,829,608,661

Investment securities --
affiliated, at value (cost of
$302,026,409, $- and $-,
respectively) -- including
$8,685,641, $- and $- of
securities on loan,
respectively                         349,111,542               --               --

Investments made with cash
collateral received for
securities on loan, at value
(cost of $141,479,479,
$178,130,166 and $22,301,953,
respectively)                        141,479,479      178,130,166       22,301,953
                                  --------------   --------------   --------------
Total investment securities,
at value (cost of
$6,459,188,595, $2,983,285,875
and $2,284,203,380,
respectively)                      7,088,311,723    3,164,555,304    2,851,910,614

Cash                                          --        2,262,718        4,312,752

Receivable for investments sold      138,650,125       70,729,399               --

Receivable for capital shares
sold                                      96,254              513           32,916

Dividends and interest
receivable                            23,157,284        4,459,647        2,929,485
                                  --------------   --------------   --------------
                                   7,250,215,386    3,242,007,581    2,859,185,767
                                  --------------   --------------   --------------

LIABILITIES

Disbursements in excess of
demand deposit cash                    2,688,040               --               --

Payable for collateral
received for securities on loan      141,479,479      178,130,166       22,301,953

Payable for investments
purchased                            129,106,274       43,526,186        5,472,516

Payable for forward foreign
currency exchange contracts            4,304,168        1,855,489               --

Payable for capital shares
redeemed                             105,555,763           75,985          555,708

Payable for variation margin
on futures contracts                          --               --          184,000

Accrued management fees                5,291,283        2,407,418        1,775,998

Distribution fees payable                112,487           22,174          108,649

Service fees (and distribution
fees - A Class and R Class)
payable                                  319,031           70,117           78,866
                                  --------------   --------------   --------------
                                     388,856,525      226,087,535       30,477,690
                                  --------------   --------------   --------------

NET ASSETS                        $6,861,358,861   $3,015,920,046   $2,828,708,077
                                  ==============   ==============   ==============

See Notes to Financial Statements.


------
28


SEPTEMBER 30, 2007 (UNAUDITED)
                                                                        Large
                                  Equity Income        Value        Company Value
NET ASSETS CONSIST OF:

Capital (par value and paid-in
surplus)                          $5,806,788,050   $2,512,639,348   $2,193,085,117

Undistributed net investment
income                                24,374,423        8,228,598        1,591,183

Undistributed net realized
gain on investment and foreign
currency transactions                405,346,657      315,636,208       64,161,792

Net unrealized appreciation on
investments and translation of
assets and liabilities in
foreign currencies                   624,849,731      179,415,892      569,869,985
                                  --------------   --------------   --------------
                                  $6,861,358,861   $3,015,920,046   $2,828,708,077
                                  ==============   ==============   ==============

INVESTOR CLASS, $0.01 PAR VALUE

Net assets                        $4,829,660,190   $2,295,586,413   $1,606,771,713

Shares outstanding                   537,414,539      292,221,233      203,729,370

Net asset value per share                  $8.99            $7.86            $7.89

INSTITUTIONAL CLASS, $0.01 PAR VALUE

Net assets                          $613,515,195     $378,796,990     $622,034,409

Shares outstanding                    68,240,184       48,159,154       78,874,743

Net asset value per share                  $8.99            $7.87            $7.89

ADVISOR CLASS, $0.01 PAR VALUE

Net assets                                   N/A              N/A     $259,912,837

Shares outstanding                           N/A              N/A       32,959,587

Net asset value per share                    N/A              N/A            $7.89

A CLASS, $0.01 PAR VALUE

Net assets                        $1,225,468,444     $312,577,268     $228,474,911

Shares outstanding                   136,352,565       39,800,059       28,947,082

Net asset value per share                  $8.99            $7.85            $7.89

Maximum offering price (net
asset value divided by 0.9425)             $9.54            $8.33            $8.37

B CLASS, $0.01 PAR VALUE

Net assets                               $25,000       $7,808,407      $17,485,593

Shares outstanding                         2,781          994,111        2,211,400

Net asset value per share                  $8.99            $7.85            $7.91

C CLASS, $0.01 PAR VALUE

Net assets                          $141,123,741      $20,223,466      $73,647,226

Shares outstanding                    15,701,589        2,591,811        9,340,482

Net asset value per share                  $8.99            $7.80            $7.88

R CLASS, $0.01 PAR VALUE

Net assets                           $51,566,291         $927,502      $20,381,388

Shares outstanding                     5,748,461          118,077        2,583,844

Net asset value per share                  $8.97            $7.86            $7.89

See Notes to Financial Statements.


------
29


STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED)
                                                                         Large
                                       Equity Income      Value      Company Value
INVESTMENT INCOME (LOSS)

INCOME:

Dividends (including $5,750,242 from
affiliates in Equity Income and net
of foreign taxes withheld of
$210,384, $111,578 and $327,566,
respectively)                           $106,834,953   $ 37,528,677   $ 33,812,385

Interest                                  10,591,300      1,809,518      2,888,993

Securities lending                           373,942        168,005        347,251
                                        ------------   ------------   ------------
                                         117,800,195     39,506,200     37,048,629
                                        ------------   ------------   ------------

EXPENSES:

Management fees                           31,573,238     15,100,060     10,587,599

Distribution fees:

 Advisor Class                                    --             --        285,043

 A Class                                   1,394,215        267,912             --

 B Class                                          --         30,275         67,050

 C Class                                     512,056         82,501        281,695

Service fees:

 Advisor Class                                    --             --        285,043

 A Class                                   1,394,215        267,912             --

 B Class                                          --         10,092         22,350

 C Class                                     170,685         27,500         93,898

Distribution and service fees:

 Advisor Class                                    --             --         57,961

 A Class                                     296,264         68,980        300,487

 A Class (old) (Note 10)                          --         75,843             --

 R Class                                     124,620          1,571         49,380

Directors' fees and expenses                 106,361         41,048         40,386

Other expenses                               109,803         19,278          2,961
                                        ------------   ------------   ------------
                                          35,681,457     15,992,972     12,073,853
                                        ------------   ------------   ------------

NET INVESTMENT INCOME (LOSS)              82,118,738     23,513,228     24,974,776
                                        ------------   ------------   ------------

REALIZED AND UNREALIZED GAIN (LOSS)

NET REALIZED GAIN (LOSS) ON:

Investment transactions (including
$3,125,344 from affiliates in Equity
Income)                                  242,175,843    199,544,942     55,400,750

Foreign currency transactions           (11,217,658)    (6,868,452)             --
                                        ------------   ------------   ------------
                                         230,958,185    192,676,490     55,400,750
                                        ------------   ------------   ------------

CHANGE IN NET UNREALIZED
APPRECIATION (DEPRECIATION) ON:

Investments                               35,596,348   (95,112,381)     65,638,207

Translation of assets and
liabilities in foreign currencies        (3,576,365)    (1,586,598)             --
                                        ------------   ------------   ------------
                                          32,019,983   (96,698,979)     65,638,207
                                        ------------   ------------   ------------

NET REALIZED AND UNREALIZED GAIN
(LOSS)                                   262,978,168     95,977,511    121,038,957
                                        ------------   ------------   ------------

NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS        $345,096,906   $119,490,739   $146,013,733
                                        ============   ============   ============

See Notes to Financial Statements.


------
30


STATEMENT OF CHANGES IN NET ASSETS

SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED) AND YEAR ENDED MARCH 31, 2007
                                       Equity Income                         Value
Increase (Decrease) in Net
Assets                        Sept. 30, 2007   March 31, 2007   Sept. 30, 2007   March 31, 2007

OPERATIONS

Net investment income (loss)     $ 82,118,738    $ 136,128,614     $ 23,513,228     $ 46,539,323

Net realized gain (loss)          230,958,185      472,394,144      192,676,490      269,233,247

Change in net unrealized
appreciation (depreciation)        32,019,983      213,879,908     (96,698,979)       99,138,940
                               --------------   --------------   --------------   --------------
Net increase (decrease) in
net assets resulting from
operations                        345,096,906      822,402,666      119,490,739      414,911,510
                               --------------   --------------   --------------   --------------

DISTRIBUTIONS TO
SHAREHOLDERS

From net investment income:

 Investor Class                  (57,458,497)     (86,505,866)     (14,445,339)     (36,707,068)

 Institutional Class              (8,125,138)     (10,063,185)      (2,097,653)      (4,512,290)

 A Class                         (14,084,219)     (18,822,568)      (1,344,915)      (2,977,077)

 A Class (old) (Note 10)                   --               --        (132,911)        (857,715)

 B Class                                   --               --          (7,447)         (38,366)

 C Class                            (943,415)      (1,180,752)         (20,139)        (110,411)

 R Class                            (472,460)        (537,191)          (2,562)          (2,127)

From net realized gains:

 Investor Class                            --    (273,126,274)               --    (162,730,575)

 Institutional Class                       --     (29,014,951)               --     (18,000,178)

 A Class                                   --     (67,129,734)               --     (15,791,328)

 A Class (old) (Note 10)                   --               --               --      (4,409,698)

 B Class                                   --               --               --        (485,927)

 C Class                                   --      (7,091,506)               --      (1,407,351)

 R Class                                   --      (2,265,013)               --         (12,047)
                               --------------   --------------   --------------   --------------
Decrease in net assets from
distributions                    (81,083,729)    (495,737,040)     (18,050,966)    (248,042,158)
                               --------------   --------------   --------------   --------------

CAPITAL SHARE TRANSACTIONS

Net increase (decrease) in
net assets from capital
share transactions              (197,288,091)    1,344,181,027    (219,963,600)      109,597,998
                               --------------   --------------   --------------   --------------

NET INCREASE (DECREASE) IN
NET ASSETS                         66,725,086    1,670,846,653    (118,523,827)      276,467,350

NET ASSETS

Beginning of period             6,794,633,775    5,123,787,122    3,134,443,873    2,857,976,523
                               --------------   --------------   --------------   --------------
End of period                  $6,861,358,861   $6,794,633,775   $3,015,920,046   $3,134,443,873
                               ==============   ==============   ==============   ==============

Undistributed net
investment income                 $24,374,423      $23,339,414       $8,228,598       $2,766,336
                               ==============   ==============   ==============   ==============

See Notes to Financial Statements.


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31


SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED) AND YEAR ENDED MARCH 31, 2007
                                                        Large Company Value
Increase (Decrease) in Net Assets                 Sept. 30, 2007   March 31, 2007

OPERATIONS

Net investment income (loss)                         $ 24,974,776     $ 43,797,171

Net realized gain (loss)                               55,400,750       26,196,582

Change in net unrealized appreciation
(depreciation)                                         65,638,207      273,032,776
                                                   --------------   --------------
Net increase (decrease) in net assets
resulting from operations                             146,013,733      343,026,529
                                                   --------------   --------------

DISTRIBUTIONS TO SHAREHOLDERS

From net investment income:

 Investor Class                                      (13,848,328)     (24,255,936)

 Institutional Class                                  (5,911,467)     (10,833,931)

 Advisor Class                                        (2,027,019)      (3,728,413)

 A Class                                              (1,792,049)      (3,616,661)

 B Class                                                 (68,535)        (136,165)

 C Class                                                (290,978)        (550,634)

 R Class                                                (126,577)        (187,796)

From net realized gains:

 Investor Class                                                --     (11,790,615)

 Institutional Class                                           --      (4,669,418)

 Advisor Class                                                 --      (2,125,865)

 A Class                                                       --      (1,905,560)

 B Class                                                       --        (142,111)

 C Class                                                       --        (577,104)

 R Class                                                       --        (124,357)
                                                   --------------   --------------
Decrease in net assets from distributions            (24,064,953)     (64,644,566)
                                                   --------------   --------------

CAPITAL SHARE TRANSACTIONS

Net increase (decrease) in net assets from
capital share transactions                            (7,777,979)      286,653,972
                                                   --------------   --------------

NET INCREASE (DECREASE) IN NET ASSETS                 114,170,801      565,035,935

NET ASSETS

Beginning of period                                 2,714,537,276    2,149,501,341
                                                   --------------   --------------
End of period                                      $2,828,708,077   $2,714,537,276
                                                   ==============   ==============

Undistributed net investment income                    $1,591,183         $681,360
                                                   ==============   ==============

See Notes to Financial Statements.


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32


NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2007 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION -- American Century Capital Portfolios, Inc. (the corporation) is
registered under the Investment Company Act of 1940 (the 1940 Act) as an
open-end management investment company. Equity Income Fund (Equity Income),
Value Fund (Value) and Large Company Value Fund (Large Company Value)
(collectively, the funds) are three funds in a series issued by the
corporation. The funds are diversified under the 1940 Act. Equity Income's
investment objective is the production of current income; capital appreciation
is a secondary objective. Equity Income pursues its investment objective by
investing in securities of companies with a favorable income-paying history
that have prospects for income payments to continue or increase. Value and
Large Company Value's investment objective is long-term capital growth. The
production of income is a secondary objective. Value and Large Company Value
seek to achieve their investment objective by investing in stocks of companies
that management believes to be undervalued at the time of purchase. Value
invests in companies with small, medium, and large market capitalization and
Large Company Value invests in companies with larger market capitalization.
The following is a summary of the funds' significant accounting policies.

MULTIPLE CLASS -- Equity Income is authorized to issue the Investor Class, the
Institutional Class, the A Class (formerly Advisor Class), the B Class, the C
Class and the R Class. Value is authorized to issue the Investor Class, the
Institutional Class, the A Class (formerly Advisor Class) (see Note 10), the B
Class, the C Class and the R Class. Large Company Value is authorized to issue
the Investor Class, the Institutional Class, the Advisor Class, the A Class,
the B Class, the C Class and the R Class. The A Class may incur an initial
sales charge. The A Class, B Class and C Class may be subject to a contingent
deferred sales charge. The share classes differ principally in their
respective sales charges and distribution and shareholder servicing expenses
and arrangements. All shares of each fund represent an equal pro rata interest
in the net assets of the class to which such shares belong, and have identical
voting, dividend, liquidation and other rights and the same terms and
conditions, except for class specific expenses and exclusive rights to vote on
matters affecting only individual classes. Income, non-class specific
expenses, and realized and unrealized capital gains and losses of the funds
are allocated to each class of shares based on their relative net assets. Sale
of Equity Income's B Class commenced on September 28, 2007, the last business
day in the period. Financial Highlights are not presented for Equity Income's
B Class, as the class had no operating results since its commencement of sale.

SECURITY VALUATIONS -- Securities traded primarily on a principal securities
exchange are valued at the last reported sales price, or at the mean of the
latest bid and asked prices where no last sales price is available. Depending
on local convention or regulation, securities traded over-the-counter are
valued at the mean of the latest bid and asked prices, the last sales price,
or the official close price. Debt securities not traded on a principal
securities exchange are valued through a commercial pricing service or at the
mean of the most recent bid and asked prices. Discount notes may be valued
through a commercial pricing service or at amortized cost, which approximates
fair value. Securities traded on foreign securities exchanges and
over-the-counter markets are normally completed before the close of business
on days that the New York Stock Exchange (the Exchange) is open and may also
take place on days when the Exchange is not open. If an event occurs after the
value of a security was established but before the net asset value per share
was determined that was likely to materially change the net asset value, that
security would be valued as determined in accordance with procedures adopted
by the Board of Directors. If the funds determine that the market price of a
portfolio security is not readily available, or that the valuation methods
mentioned above do not reflect the security's fair value, such security is
valued as determined by, or in accordance with procedures adopted by, the
Board of Directors or its designee if such determination would materially
impact a fund's net asset value. Certain other circumstances may cause the
funds to use alternative procedures to value a security such as: a security
has been declared in default; trading in a security has been halted during the
trading day; or there is a foreign market holiday and no trading will commence.

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

INVESTMENT INCOME -- Dividend income less foreign taxes withheld, if any, is
recorded as of the ex-dividend date. Interest income is recorded on the
accrual basis and includes accretion of discounts and amortization of premiums.


------
33


SECURITIES ON LOAN -- The funds may lend portfolio securities through their
lending agent to certain approved borrowers in order to earn additional
income. The funds continue to recognize any gain or loss in the market price
of the securities loaned and record any interest earned or dividends declared.

FUTURES AND OPTIONS CONTRACTS -- The funds may enter into futures contracts
and purchase put options in order to manage the funds' exposure to changes in
market conditions. One of the risks of entering into futures contracts and
options is the possibility that the change in value of the contract may not
correlate with the changes in value of the underlying securities. Options
purchased by the funds are accounted for in the same manner as marketable
portfolio securities. The proceeds from securities sold through the exercise
of put options are decreased by the premium paid to purchase the put options.

Upon entering into a futures contract, the funds are required to deposit
either cash or securities in an amount equal to a certain percentage of the
contract value (initial margin). Subsequent payments (variation margin) are
made or received daily, in cash, by the funds. The variation margin is equal
to the daily change in the contract value and is recorded as unrealized gains
and losses. The funds recognize a realized gain or loss when the contract is
closed or expires. Net realized and unrealized gains or losses occurring
during the holding period of futures contracts are a component of realized
gain (loss) on investment transactions and unrealized appreciation
(depreciation) on investments, respectively.

EQUITY-LINKED DEBT AND LINKED-EQUITY SECURITIES -- The funds may invest in
hybrid equity securities, which usually convert into common stock at a date
predetermined by the issuer. These securities generally offer a higher
dividend yield than that of the common stock to which the security is linked.
These instruments are issued by a company other than the one to which the
security is linked and carry the credit of the issuer, not that of the
underlying common stock. The securities' appreciation is limited based on a
predetermined final cap price at the date of the conversion. Risks of
investing in these securities include, but are not limited to, a set time to
capture the yield advantage, limited appreciation potential, decline in value
of the underlying stock, and failure of the issuer to pay dividends or to
deliver common stock at maturity.

WHEN-ISSUED AND FORWARD COMMITMENTS -- The funds may engage in securities
transactions on a when-issued or forward commitment basis. Under these
arrangements, the securities' prices and yields are fixed on the date of the
commitment, but payment and delivery are scheduled for a future date. During
this period, securities are subject to market fluctuations. The funds will
segregate cash, cash equivalents or other appropriate liquid securities on
their records in amounts sufficient to meet the purchase price.

FOREIGN CURRENCY TRANSACTIONS -- All assets and liabilities initially
expressed in foreign currencies are translated into U.S. dollars at prevailing
exchange rates at period end. Purchases and sales of investment securities,
dividend and interest income, and certain expenses are translated at the rates
of exchange prevailing on the respective dates of such transactions. For
assets and liabilities, other than investments in securities, net realized and
unrealized gains and losses from foreign currency translations arise from
changes in currency exchange rates.

Net realized and unrealized foreign currency exchange gains or losses
occurring during the holding period of investment securities are a component
of realized gain (loss) on investment transactions and unrealized appreciation
(depreciation) on investments, respectively. Certain countries may impose
taxes on the contract amount of purchases and sales of foreign currency
contracts in their currency. The funds record the foreign tax expense, if any,
as a reduction to the net realized gain (loss) on foreign currency
transactions.

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The funds may enter into
forward foreign currency exchange contracts to facilitate transactions of
securities denominated in a foreign currency or to hedge the funds' exposure
to foreign currency exchange rate fluctuations. The net U.S. dollar value of
foreign currency underlying all contractual commitments held by the funds and
the resulting unrealized appreciation or depreciation are determined daily
using prevailing exchange rates. The funds bear the risk of an unfavorable
change in the foreign currency exchange rate underlying the forward contract.
Additionally, losses may arise if the counterparties do not perform under the
contract terms.


------
34


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

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

INCOME TAX STATUS -- It is each fund's policy to distribute substantially all
net investment income and net realized gains to shareholders and to otherwise
qualify as a regulated investment company under provisions of the Internal
Revenue Code. The funds are no longer subject to examination by tax
authorities for years prior to 2004. At this time, management has not
identified any uncertain tax positions that would materially impact the
financial statements. Accordingly, no provision has been made for federal or
state income taxes. Interest and penalties associated with any federal or
state income tax obligations, if any, are recorded as interest expense.

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

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

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

2. FEES AND TRANSACTIONS WITH RELATED PARTIES

On July 27, 2007, the A Class (formerly Advisor Class, also referred to as "A
Class (new)") shareholders of Equity Income and Value and the Advisor Class
shareholders of Large Company Value approved a change to the class's fee
structure. The change was approved by the Board of Directors on November 29,
2006 and March 7, 2007. Effective September 4, 2007, the fee structure change
resulted in an increase of 0.25% in the unified management fee and a
simultaneous decrease of 0.25% in the total distribution and service fee,
resulting in no change to the total operating expense ratio of the class.

MANAGEMENT FEES -- The corporation has entered into a Management Agreement
with ACIM, under which ACIM provides the funds with investment advisory and
management services in exchange for a single, unified management fee (the fee)
per class. The Agreement provides that all expenses of the funds, except
brokerage commissions, taxes, interest, fees and expenses of those directors
who are not considered "interested persons" as defined in the 1940 Act
(including counsel fees) and extraordinary expenses, will be paid by ACIM. The
fee is computed and accrued daily based on the daily net assets of each
specific class of shares of each fund and paid monthly in arrears. For funds
with a stepped fee schedule, the rate of the fee is determined by applying a
fee rate calculation formula. This formula takes into account all of the
investment advisor's assets under management in each fund's investment
strategy (strategy assets) to calculate the appropriate fee rate for each
fund. The strategy assets include each fund's assets and the assets of other
clients of the investment advisor that are not in the American Century family
of funds, but that have the same investment team and investment strategy. The
annual management fee schedule for Equity Income ranges from 0.80% to 1.00%
for the Investor Class, A Class, B Class, C Class and R Class. The annual
management fee schedule for Value ranges from 0.85% to 1.00% for the Investor
Class, A Class, B Class, C Class and R Class. Prior to September 4, 2007, the


------
35


A Class (new) management fee was 0.25% less at each point within the range for
Equity Income and Value. The annual management fee schedule for Large Company
Value ranges from 0.70% to 0.90% for the Investor Class, Advisor Class, A
Class, B Class, C Class and R Class. Prior to September 4, 2007, the Advisor
Class was 0.25% less at each point within the range for Large Company Value.
The Institutional Class of each fund is 0.20% less at each point within the
range.

The effective annual management fee for each class of each fund for the six
months ended September 30, 2007, was as follows:

                  Equity Income   Value   Large Company Value

Investor              0.96%       0.99%          0.83%
Institutional         0.76%       0.79%          0.63%
Advisor                N/A         N/A           0.62%
A                     0.75%       0.78%          0.83%
B                     0.96%       0.99%          0.83%
C                     0.96%       0.99%          0.83%
R                     0.96%       0.99%          0.83%

DISTRIBUTION AND SERVICE FEES -- For Equity Income and Value, the Board of
Directors has adopted a separate Master Distribution and Individual
Shareholder Services Plan for each of the A Class, B Class, C Class and R
Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The
plans provide that the A Class will pay American Century Investment Services,
Inc. (ACIS) an annual distribution and service fee of 0.25%. The plans provide
that the B Class and the C Class will each pay ACIS an annual distribution fee
of 0.75% and service fee of 0.25%. The plans provide that the R Class will pay
ACIS an annual distribution and service fee of 0.50%. Prior to September 4,
2007, the Board of Directors had adopted a Master Distribution and Shareholder
Services Plan for the A Class (new) for Equity Income and Value, pursuant to
Rule 12b-1 of the 1940 Act, in which the A Class (new) paid ACIS an annual
distribution fee of 0.25% and service fee of 0.25%.

For Large Company Value, the Board of Directors has adopted a separate Master
Distribution and Individual Shareholder Services Plan for each of the Advisor
Class, A Class, B Class, C Class and R Class (collectively the Large Company
Value plans), pursuant to Rule 12b-1 of the 1940 Act. The Large Company Value
plans provide that the Advisor Class will pay ACIS an annual distribution and
service fee of 0.25%. Prior to September 4, 2007, the Board of Directors had
adopted a Master Distribution and Shareholder Services Plan for the Advisor
Class which provided that the Advisor Class paid ACIS an annual distribution
fee of 0.25% and service fee of 0.25%. The Large Company Value plans provide
that the B Class and the C Class will each pay ACIS an annual distribution fee
of 0.75% and service fee of 0.25%. The Large Company Value plans provide that
the A Class and the R Class will pay ACIS an annual distribution and service
fee of 0.25% for the A Class and 0.50% for the R Class.

The fees are computed and accrued daily based on each class's daily net assets
and paid monthly in arrears. The distribution fee provides compensation for
expenses incurred in connection with distributing shares of the classes
including, but not limited to, payments to brokers, dealers, and financial
institutions that have entered into sales agreements with respect to shares of
the funds. The service fee provides compensation for shareholder and
administrative services rendered by ACIS, its affiliates or independent third
party providers for Advisor Class shares and prior to September 4, 2007, for A
Class (new) shares. The service fee provides compensation for individual
shareholder services rendered by broker/dealers or other independent financial
intermediaries for A Class (new), A Class (old), B Class, C Class and R Class
shares. Fees incurred under the plans during the six months ended September
30, 2007, are detailed in the Statement of Operations.

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

The funds are eligible to invest in a money market fund for temporary
purposes, which is managed by J.P. Morgan Investment Management, Inc. (JPMIM).
JPMIM is a wholly owned subsidiary of JPMorgan Chase & Co. (JPM). JPM is an
equity investor in ACC. The funds have a bank line of credit agreement and
securities lending agreement with JPMorgan Chase Bank (JPMCB). JPMCB is a
custodian of the funds and a wholly owned subsidiary of JPM.


------
36


3. INVESTMENT TRANSACTIONS

Investment transactions, excluding short-term investments, for the six months
ended September 30, 2007, were as follows:

                          Equity Income        Value       Large Company Value

Purchases                $5,354,716,926   $2,491,487,553       $252,671,559
Proceeds from sales      $5,546,413,686   $2,696,043,947       $267,159,428

4. CAPITAL SHARE TRANSACTIONS

Transactions in shares of the funds were as follows:

                         Six months ended
                       September 30, 2007(1)          Year ended March 31, 2007
                      Shares          Amount           Shares           Amount
Equity Income

INVESTOR
CLASS/SHARES
AUTHORIZED         1,500,000,000                    1,360,000,000
                   =============                    =============

Sold                  50,987,746    $ 453,725,790     190,310,967   $ 1,637,151,978

Issued in
reinvestment of
distributions          5,969,337       52,636,347      38,604,239       331,069,234

Redeemed            (73,446,952)    (652,367,683)   (133,390,090)   (1,127,801,623)
                   -------------   --------------   -------------   ---------------
                    (16,489,869)    (146,005,546)      95,525,116       840,419,589
                   -------------   --------------   -------------   ---------------
INSTITUTIONAL
CLASS/SHARES
AUTHORIZED           240,000,000                      125,000,000
                   =============                    =============

Sold                  17,672,349      157,195,287      27,716,304       235,066,960

Issued in
reinvestment of
distributions            876,384        7,728,096       4,398,103        37,748,723

Redeemed            (14,016,926)    (124,592,343)    (15,634,070)     (129,701,566)
                   -------------   --------------   -------------   ---------------
                       4,531,807       40,331,040      16,480,337       143,114,117
                   -------------   --------------   -------------   ---------------
A CLASS/SHARES
AUTHORIZED           475,000,000                      300,000,000
                   =============                    =============

Sold                  20,672,568      183,920,566      63,150,373       542,584,966

Issued in
reinvestment of
distributions          1,434,277       12,647,059       9,703,715        83,260,832

Redeemed            (33,846,868)    (302,084,613)    (36,128,442)     (306,093,143)
                   -------------   --------------   -------------   ---------------
                    (11,740,023)    (105,516,988)      36,725,646       319,752,655
                   -------------   --------------   -------------   ---------------
B CLASS/SHARES
AUTHORIZED            20,000,000                              N/A
                   =============

Sold                       2,781           25,000
                   -------------   --------------
C CLASS/SHARES
AUTHORIZED            50,000,000                       30,000,000
                   =============                    =============

Sold                   2,068,563       18,432,268       3,827,372        32,729,364

Issued in
reinvestment of
distributions             95,361          840,834         835,135         7,173,464

Redeemed             (1,175,454)     (10,442,786)     (2,097,020)      (17,745,905)
                   -------------   --------------   -------------   ---------------
                         988,470        8,830,316       2,565,487        22,156,923
                   -------------   --------------   -------------   ---------------
R CLASS/SHARES
AUTHORIZED            20,000,000                       10,000,000
                   =============                    =============

Sold                   1,186,765       10,593,512       2,794,448        23,866,772

Issued in
reinvestment of
distributions             52,812          464,612         323,510         2,772,472

Redeemed               (676,638)      (6,010,037)       (933,327)       (7,901,501)
                   -------------   --------------   -------------   ---------------
                         562,939        5,048,087       2,184,631        18,737,743
                   -------------   --------------   -------------   ---------------
Net increase
(decrease)          (22,143,895)   $(197,288,091)     153,481,217    $1,344,181,027
                   =============   ==============   =============   ===============

(1) September 28, 2007 (commencement of sale) through September 30, 2007 for
the B Class.


------
37


                             Six months ended
                            September 30, 2007          Year ended March 31, 2007
                         Shares          Amount          Shares          Amount
Value

INVESTOR
CLASS/SHARES
AUTHORIZED            1,250,000,000                     700,000,000
                      =============                    ============

Sold                     13,128,703    $ 103,847,000     46,299,513    $349,174,054

Issued in
reinvestment of
distributions             1,768,531       13,785,709     25,193,051     189,713,667

Redeemed               (50,433,298)    (398,536,576)   (63,409,787)   (473,327,597)
                      -------------   --------------   ------------   -------------
                       (35,536,064)    (280,903,867)      8,082,777      65,560,124
                      -------------   --------------   ------------   -------------
INSTITUTIONAL
CLASS/SHARES
AUTHORIZED              125,000,000                     100,000,000
                      =============                    ============
Sold                     14,361,023      113,334,252     12,275,041      91,985,893

Issued in
reinvestment of
distributions               268,627        2,094,679      2,982,130      22,480,817

Redeemed                (4,458,919)     (35,163,026)   (12,700,338)    (94,682,949)
                      -------------   --------------   ------------   -------------
                         10,170,731       80,265,905      2,556,833      19,783,761
                      -------------   --------------   ------------   -------------
A CLASS/SHARES
AUTHORIZED              150,000,000                     100,000,000
                      =============                    ============

Sold                      2,941,064       23,191,127      9,522,904      71,576,386

Issued in
connection with
reclassification
(Note 10)                 8,894,774       68,678,162             --              --

Issued in
reinvestment of
distributions               170,969        1,327,284      2,477,211      18,667,945

Redeemed                (4,957,797)     (39,000,270)    (9,165,753)    (69,029,374)
                      -------------   --------------   ------------   -------------
                          7,049,010       54,196,303      2,834,362      21,214,957
                      -------------   --------------   ------------   -------------
A CLASS
(OLD)/SHARES
AUTHORIZED                      N/A                      30,000,000
                      =============                    ============

Sold                        662,726        5,260,916      2,619,729      19,582,575

Issued in
reinvestment of
distributions                15,737          125,739        682,151       5,140,730

Redeemed in
connection with
reclassification
(Note 10)               (8,894,774)     (68,678,162)             --              --

Redeemed                (1,001,889)      (7,911,168)    (3,234,521)    (24,036,632)
                      -------------   --------------   ------------   -------------
                        (9,218,200)     (71,202,675)         67,359         686,673
                      -------------   --------------   ------------   -------------
B CLASS/SHARES
AUTHORIZED               20,000,000                      10,000,000
                      =============                    ============

Sold                         52,652          414,730        130,722         977,611

Issued in
reinvestment of
distributions                   529            4,084         60,179         453,375

Redeemed                   (76,175)        (597,265)      (166,459)     (1,227,272)
                      -------------   --------------   ------------   -------------
                           (22,994)        (178,451)         24,442         203,714
                      -------------   --------------   ------------   -------------
C CLASS/SHARES
AUTHORIZED               20,000,000                      10,000,000
                      =============                    ============

Sold                        187,679        1,458,814        651,229       4,845,046

Issued in
reinvestment of
distributions                 2,258           17,128        160,285       1,201,156

Redeemed                  (543,381)      (4,212,192)      (563,859)     (4,173,304)
                      -------------   --------------   ------------   -------------
                          (353,444)      (2,736,250)        247,655       1,872,898
                      -------------   --------------   ------------   -------------
R CLASS/SHARES
AUTHORIZED               20,000,000                       5,000,000
                      =============                    ============
Sold                         85,918          686,393         39,658         290,987

Issued in
reinvestment of
distributions                   332            2,562          1,882          14,174

Redeemed                   (11,645)         (93,520)        (4,072)        (29,290)
                      -------------   --------------   ------------   -------------
                             74,605          595,435         37,468         275,871
                      -------------   --------------   ------------   -------------
Net increase
(decrease)             (27,836,356)   $(219,963,600)     13,850,896    $109,597,998
                      =============   ==============   ============   =============


------
38


                            Six months ended
                           September 30, 2007          Year ended March 31, 2007
                      Shares             Amount         Shares          Amount
Large Company Value

INVESTOR
CLASS/SHARES
AUTHORIZED              550,000,000                    350,000,000
                       ============                   ============

Sold                     46,350,561    $363,222,237     72,227,467   $ 518,958,509

Issued in
reinvestment of
distributions             1,332,055      10,366,617      3,744,065      27,199,318

Redeemed               (42,260,964)   (334,593,436)   (43,277,503)   (310,977,065)
                       ------------   -------------   ------------   -------------
                          5,421,652      38,995,418     32,694,029     235,180,762
                       ------------   -------------   ------------   -------------
INSTITUTIONAL
CLASS/SHARES
AUTHORIZED              200,000,000                    200,000,000
                       ============                   ============

Sold                     11,775,943      93,442,754     25,602,969     185,299,046

Issued in
reinvestment of
distributions               675,103       5,257,819      1,929,307      13,987,715

Redeemed               (11,284,809)    (89,670,333)   (28,272,499)   (203,670,769)
                       ------------   -------------   ------------   -------------
                          1,166,237       9,030,240      (740,223)     (4,384,008)
                       ------------   -------------   ------------   -------------
ADVISOR
CLASS/SHARES
AUTHORIZED              150,000,000                     75,000,000
                       ============                   ============

Sold                      5,142,572      40,758,965     16,186,463     116,408,513

Issued in
reinvestment of
distributions               210,963       1,644,934        628,205       4,579,239

Redeemed                (9,849,720)    (76,385,259)    (6,834,302)    (49,342,297)
                       ------------   -------------   ------------   -------------
                        (4,496,185)    (33,981,360)      9,980,366      71,645,455
                       ------------   -------------   ------------   -------------
A CLASS/SHARES
AUTHORIZED              150,000,000                    150,000,000
                       ============                   ============

Sold                      1,627,139      12,802,961      6,284,203      45,840,430

Issued in
reinvestment of
distributions               201,210       1,569,589        705,634       5,122,651

Redeemed                (4,565,507)    (36,051,150)   (10,446,648)    (73,879,471)
                       ------------   -------------   ------------   -------------
                        (2,737,158)    (21,678,600)    (3,456,811)    (22,916,390)
                       ------------   -------------   ------------   -------------
B CLASS/SHARES
AUTHORIZED               20,000,000                     10,000,000
                       ============                   ============

Sold                         51,221         403,673        164,034       1,189,507

Issued in
reinvestment of
distributions                 7,269          56,817         31,725         233,063

Redeemed                  (140,911)     (1,106,176)      (270,147)     (1,937,433)
                       ------------   -------------   ------------   -------------
                           (82,421)       (645,686)       (74,388)       (514,863)
                       ------------   -------------   ------------   -------------
C CLASS/SHARES
AUTHORIZED               50,000,000                     20,000,000
                       ============                   ============

Sold                        938,549       7,384,109      1,996,859      14,288,977

Issued in
reinvestment of
distributions                13,663         106,494         56,188         412,221

Redeemed                (1,117,123)     (8,803,876)    (1,729,086)    (12,288,309)
                       ------------   -------------   ------------   -------------
                          (164,911)     (1,313,273)        323,961       2,412,889
                       ------------   -------------   ------------   -------------
R CLASS/SHARES
AUTHORIZED               20,000,000                     10,000,000
                       ============                   ============

Sold                        453,833       3,557,323        968,486       7,058,412

Issued in
reinvestment of
distributions                15,941         124,290         41,974         306,715

Redeemed                  (237,180)     (1,866,331)      (293,569)     (2,135,000)
                       ------------   -------------   ------------   -------------
                            232,594       1,815,282        716,891       5,230,127
                       ------------   -------------   ------------   -------------
Net increase
(decrease)                (660,192)   $ (7,777,979)     39,443,825   $ 286,653,972
                       ============   =============   ============   =============


------
39


5. AFFILIATED COMPANY TRANSACTIONS

If a fund's holding represents ownership of 5% or more of the voting
securities of a company, the company is affiliated as defined in the 1940 Act.
A summary of transactions for each company which is or was an affiliate at or
during the six months ended September 30, 2007 follows:

                                                                                      September 30, 2007
                 Share
                 Balance       Purchase                   Realized     Dividend    Share
Fund/Company      3/31/07        Cost       Sales Cost   Gain (Loss)    Income      Balance    Market Value

Equity Income

Cascade
Natural Gas
Corp.(1)            569,091            --   $11,798,037   $3,282,875    $ 136,582          --             --

Commerce
Bancshares,
Inc.(2)           3,319,053   $20,342,996     9,864,442    (353,788)    1,766,451   3,553,739   $163,081,083

Westar Energy
Inc.(2)           3,949,949    12,707,629     5,442,857      212,806    2,179,439   4,247,349    104,314,891

WGL Holdings
Inc.(2)           2,427,900     3,681,909     4,351,502     (16,549)    1,667,770   2,411,200     81,715,568
                              -----------   -----------   ----------   ----------               ------------
                              $36,732,534   $31,456,838   $3,125,344   $5,750,242               $349,111,542
                              ===========   ===========   ==========   ==========               ============

(1) Company was not an affiliate at September 30, 2007.

(2) Security, or a portion thereof, was on loan as of September 30, 2007.

6. SECURITIES LENDING

As of September 30, 2007, securities in Equity Income, Value and Large Company
Value valued at $139,928,885, $172,891,363 and $21,495,747, respectively, were
on loan through the lending agent, JPMCB, to certain approved borrowers. JPMCB
receives and maintains collateral in the form of cash and/or acceptable
securities as approved by ACIM. Cash collateral is invested in authorized
investments by the lending agent in a pooled account. The value of cash
collateral received at period end is disclosed in the Statement of Assets and
Liabilities and investments made with the cash by the lending agent are listed
in the Schedule of Investments. Any deficiencies or excess of collateral must
be delivered or transferred by the member firms no later than the close of
business on the next business day. The total value of all collateral received,
at this date, was $141,479,479, $178,130,166 and $22,301,953, respectively.
The funds' risks in securities lending are that the borrower may not provide
additional collateral when required or return the securities when due. If the
borrower defaults, receipt of the collateral by the funds may be delayed or
limited.

7. BANK LINE OF CREDIT

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

8. RISK FACTORS

There are certain risks involved in investing in foreign securities. These
risks include those resulting from future adverse political, social, and
economic developments, fluctuations in currency exchange rates, the possible
imposition of exchange controls, and other foreign laws or restrictions.


------
40


9. FEDERAL TAX INFORMATION

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

As of September 30, 2007, the components of investments for federal income tax
purposes were as follows:

                                                                   Large Company
                               Equity Income         Value             Value
Federal tax cost of
investments                     $6,532,523,214   $3,061,184,403     $2,287,531,979
                                ==============   ==============    ===============
Gross tax appreciation of
investments                       $636,885,580     $214,515,232       $613,126,340

Gross tax depreciation of
investments                       (81,097,071)    (111,144,331)       (48,747,705)
                                --------------   --------------    ---------------
Net tax appreciation
(depreciation) of
investments                       $555,788,509     $103,370,901       $564,378,635
                                ==============   ==============    ===============

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

Equity Income had $(187,650) of net foreign currency loss deferrals incurred
in the five-month period ended March 31, 2007. Equity Income has elected to
treat such losses as having been incurred in the following fiscal year for
federal income tax purposes.

10. CORPORATE EVENT

On July 27, 2007, the A Class (old) shareholders of Value approved a
reclassification of A Class (old) shares into Advisor Class shares. The change
was approved by the Board of Directors on November 29, 2006 and March 7, 2007.
The reclassification was effective on September 4, 2007. Subsequent to the
reclassification, the Advisor Class was renamed A Class.

On September 25, 2007, the A Class shareholders of Large Company Value
approved a reclassification of A Class shares into Advisor Class shares. The
change was approved by the Board of Directors on November 29, 2006 and March
7, 2007. The reclassification is expected to be effective December 3, 2007.
Subsequent to the reclassification, the Advisor Class will be renamed A Class.

11. RECENTLY ISSUED ACCOUNTING STANDARDS

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

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


------
41


FINANCIAL HIGHLIGHTS
Equity Income

Investor Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                        2007(1)         2007         2006        2005         2004         2003
PER-SHARE DATA

Net Asset
Value,
Beginning of
Period                    $8.65        $8.11        $8.05       $7.84        $6.22        $7.36
                       --------     --------     --------    --------     --------     --------
Income From
Investment
Operations

 Net
 Investment
 Income
 (Loss)(2)                 0.11         0.21         0.20        0.21         0.22         0.17

 Net Realized
 and
 Unrealized
 Gain (Loss)               0.34         1.05         0.36        0.61         1.71       (1.05)
                       --------     --------     --------    --------     --------     --------
 Total From
 Investment
 Operations                0.45         1.26         0.56        0.82         1.93       (0.88)
                       --------     --------     --------    --------     --------     --------
Distributions

 From Net
 Investment
 Income                  (0.11)       (0.17)       (0.18)      (0.19)       (0.19)       (0.16)

 From Net
 Realized
 Gains                       --       (0.55)       (0.32)      (0.42)       (0.12)       (0.10)
                       --------     --------     --------    --------     --------     --------
 Total
 Distributions           (0.11)       (0.72)       (0.50)      (0.61)       (0.31)       (0.26)
                       --------     --------     --------    --------     --------     --------
Net Asset Value,
End of Period             $8.99        $8.65        $8.11       $8.05        $7.84        $6.22
                       ========     ========     ========    ========     ========     ========

TOTAL RETURN(3)           5.17%       15.79%        7.21%      10.69%       31.30%     (12.09)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net Assets     0.96%(4)        0.97%        0.98%       0.99%        1.00%        1.00%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets             2.39%(4)        2.43%        2.53%       2.56%        2.95%        2.60%

Portfolio
Turnover Rate               77%         160%         150%        174%          91%         120%

Net Assets, End
of Period (in
thousands)           $4,829,660   $4,790,510   $3,715,366  $3,290,442   $2,248,158   $1,277,478

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

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

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

(4) Annualized.

See Notes to Financial Statements.


------
42


Equity Income

Institutional Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                       2007(1)       2007       2006       2005       2004      2003
PER-SHARE DATA

Net Asset Value,
Beginning of Period      $8.65      $8.11      $8.06      $7.85      $6.23     $7.36
                      --------   --------   --------   --------   --------  --------
Income From
Investment
Operations

 Net
 Investment
 Income
 (Loss)(2)                0.12       0.23       0.22       0.22       0.24      0.19

 Net Realized
 and
 Unrealized
 Gain (Loss)              0.33       1.05       0.35       0.61       1.71    (1.04)
                      --------   --------   --------   --------   --------  --------
 Total From
 Investment
 Operations               0.45       1.28       0.57       0.83       1.95    (0.85)
                      --------   --------   --------   --------   --------  --------
Distributions

 From Net
 Investment
 Income                 (0.11)     (0.19)     (0.20)     (0.20)     (0.21)    (0.18)

 From Net
 Realized
 Gains                      --     (0.55)     (0.32)     (0.42)     (0.12)    (0.10)
                      --------   --------   --------   --------   --------  --------
 Total
 Distributions          (0.11)     (0.74)     (0.52)     (0.62)     (0.33)    (0.28)
                      --------   --------   --------   --------   --------  --------
Net Asset Value,
End of Period            $8.99      $8.65      $8.11      $8.06      $7.85     $6.23
                      ========   ========   ========   ========   ========  ========

TOTAL RETURN(3)          5.28%     16.01%      7.29%     10.91%     31.51%  (11.77)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to
Average Net Assets    0.76%(4)      0.77%      0.78%      0.79%      0.80%     0.80%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets            2.59%(4)      2.63%      2.73%      2.76%      3.15%     2.80%

Portfolio Turnover
Rate                       77%       160%       150%       174%        91%      120%

Net Assets, End of
Period (in
thousands)            $613,515   $551,202   $382,909   $257,195   $183,330   $77,837

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

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

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

(4) Annualized.

See Notes to Financial Statements.


------
43


Equity Income

A Class(1)
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                        2007(2)         2007       2006      2005       2004       2003
PER-SHARE DATA

Net Asset Value,
Beginning of
Period                    $8.65        $8.11      $8.05     $7.84      $6.22      $7.36
                       --------     --------   --------  --------   --------   --------
Income From
Investment
Operations

 Net
 Investment
 Income
 (Loss)(3)                 0.10         0.19       0.18      0.19       0.20       0.16

 Net Realized
 and
 Unrealized
 Gain (Loss)               0.33         1.05       0.36      0.61       1.72     (1.05)
                       --------     --------   --------  --------   --------   --------
 Total From
 Investment
 Operations                0.43         1.24       0.54      0.80       1.92     (0.89)
                       --------     --------   --------  --------   --------   --------
Distributions

 From Net
 Investment
 Income                  (0.09)       (0.15)     (0.16)    (0.17)     (0.18)     (0.15)

 From Net
 Realized
 Gains                       --       (0.55)     (0.32)    (0.42)     (0.12)     (0.10)
                       --------     --------   --------  --------   --------   --------
 Total
 Distributions           (0.09)       (0.70)     (0.48)    (0.59)     (0.30)     (0.25)
                       --------     --------   --------  --------   --------   --------
Net Asset Value,
End of Period             $8.99        $8.65      $8.11     $8.05      $7.84      $6.22
                       ========     ========   ========  ========   ========   ========

TOTAL RETURN(4)           5.04%       15.51%      6.94%    10.41%     30.97%   (12.30)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net Assets     1.21%(5)        1.22%      1.23%     1.24%      1.25%      1.25%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets             2.14%(5)        2.18%      2.28%     2.31%      2.70%      2.35%

Portfolio
Turnover Rate               77%         160%       150%      174%        91%       120%

Net Assets, End
of Period (in
thousands)           $1,225,468   $1,280,888   $902,749  $765,331   $457,360   $156,911

(1) Prior to September 4, 2007, the A Class was referred to as the Advisor
Class.

(2) Six months ended September 30, 2007 (unaudited).

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

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

(5) Annualized.

See Notes to Financial Statements.


------
44


Equity Income

C Class
For a Share Outstanding Throughout the Year Ended March 31 (except as noted)
                        2007(1)       2007      2006     2005      2004       2003
PER-SHARE DATA

Net Asset Value,
Beginning of Period       $8.65      $8.11     $8.06    $7.85     $6.21      $7.36
                       --------   --------   -------  -------   -------   --------
Income From
Investment
Operations

 Net Investment
 Income
 (Loss)(2)                 0.06       0.12      0.13     0.13      0.15       0.11

 Net Realized
 and Unrealized
 Gain (Loss)               0.34       1.06      0.34     0.61      1.73     (1.06)
                       --------   --------   -------  -------   -------   --------
 Total From
 Investment
 Operations                0.40       1.18      0.47     0.74      1.88     (0.95)
                       --------   --------   -------  -------   -------   --------
Distributions

 From Net
 Investment
 Income                  (0.06)     (0.09)    (0.10)   (0.11)    (0.12)     (0.10)

 From Net
 Realized Gains              --     (0.55)    (0.32)   (0.42)    (0.12)     (0.10)
                       --------   --------   -------  -------   -------   --------
 Total
 Distributions           (0.06)     (0.64)    (0.42)   (0.53)    (0.24)     (0.20)
                       --------   --------   -------  -------   -------   --------
Net Asset Value,
End of Period             $8.99      $8.65     $8.11    $8.06     $7.85      $6.21
                       ========   ========   =======  =======   =======   ========

TOTAL RETURN(3)           4.65%     14.65%     6.02%    9.60%    30.37%   (13.08)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to Average
Net Assets             1.96%(4)      1.97%     1.98%    1.99%     2.00%      2.00%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets             1.39%(4)      1.43%     1.53%    1.56%     1.95%      1.60%

Portfolio Turnover
Rate                        77%       160%      150%     174%       91%       120%

Net Assets, End of
Period (in
thousands)             $141,124   $127,266   $98,481  $63,512   $42,579    $12,254

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

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

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

(4) Annualized.

See Notes to Financial Statements.


------
45


Equity Income

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

Net Asset Value, Beginning
of Period                          $8.63     $8.09     $8.04      $7.84      $7.22
                                --------   -------   -------   --------   --------
Income From Investment
Operations

 Net Investment Income
 (Loss)(3)                          0.08      0.17      0.17       0.17       0.11

 Net Realized and
 Unrealized Gain (Loss)             0.34      1.05      0.34       0.60       0.76
                                --------   -------   -------   --------   --------
 Total From Investment
 Operations                         0.42      1.22      0.51       0.77       0.87
                                --------   -------   -------   --------   --------
Distributions

 From Net Investment
 Income                           (0.08)    (0.13)    (0.14)     (0.15)     (0.13)

 From Net Realized Gains              --    (0.55)    (0.32)     (0.42)     (0.12)
                                --------   -------   -------   --------   --------
 Total Distributions              (0.08)    (0.68)    (0.46)     (0.57)     (0.25)
                                --------   -------   -------   --------   --------
Net Asset Value,
End of Period                      $8.97     $8.63     $8.09      $8.04      $7.84
                                ========   =======   =======   ========   ========

TOTAL RETURN(4)                    4.92%    15.25%     6.56%     10.03%     12.19%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets           1.46%(5)     1.47%     1.48%   1.44%(6)   1.50%(5)

Ratio of Net Investment
Income (Loss) to Average Net
Assets                          1.89%(5)     1.93%     2.03%   2.11%(6)   2.44%(5)

Portfolio Turnover Rate              77%      160%      150%       174%     91%(7)

Net Assets, End of Period
(in thousands)                   $51,566   $44,767   $24,283     $6,046       $392

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

(2) August 29, 2003 (commencement of sale) through March 31, 2004.

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

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

(5) Annualized.

(6) During a portion of the year ended March 31, 2005, the class received
partial reimbursement of its distribution and service fees. Had fees not been
reimbursed the annualized ratio of operating expenses to average net assets
and annualized ratio of net investment income (loss) to average net assets
would have been 1.49% and 2.06%, respectively.

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

See Notes to Financial Statements.


------
46


Value

Investor Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                        2007(1)         2007         2006        2005         2004         2003
PER-SHARE DATA

Net Asset Value,
Beginning of
Period                    $7.61        $7.18        $7.31       $7.72        $5.61        $7.19
                       --------     --------     --------    --------     --------     --------
Income From
Investment
Operations

 Net
 Investment
 Income
 (Loss)(2)                 0.06         0.12         0.12        0.09         0.09         0.07

 Net Realized
 and
 Unrealized
 Gain (Loss)               0.24         0.93         0.57        0.64         2.18       (1.48)
                       --------     --------     --------    --------     --------     --------
 Total From
 Investment
 Operations                0.30         1.05         0.69        0.73         2.27       (1.41)
                       --------     --------     --------    --------     --------     --------
Distributions

 From Net
 Investment
 Income                  (0.05)       (0.11)       (0.10)      (0.09)       (0.08)       (0.07)

 From Net
 Realized
 Gains                       --       (0.51)       (0.72)      (1.05)       (0.08)       (0.10)
                       --------     --------     --------    --------     --------     --------
 Total
 Distributions           (0.05)       (0.62)       (0.82)      (1.14)       (0.16)       (0.17)
                       --------     --------     --------    --------     --------     --------
Net Asset Value,
End of Period             $7.86        $7.61        $7.18       $7.31        $7.72        $5.61
                       ========     ========     ========    ========     ========     ========

TOTAL RETURN(3)           3.90%       14.90%        9.89%       9.95%       40.66%     (19.85)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net Assets     0.99%(4)        0.99%        0.99%       0.99%        1.00%        1.00%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets             1.50%(4)        1.58%        1.71%       1.16%        1.26%        1.19%

Portfolio
Turnover Rate               81%         140%         134%        130%         122%         102%

Net Assets, End
of Period (in
thousands)           $2,295,586   $2,495,067   $2,296,153  $2,315,507   $2,152,265   $1,552,632

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

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

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

(4) Annualized.

See Notes to Financial Statements.


------
47


Value

Institutional Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                       2007(1)       2007       2006       2005       2004      2003
PER-SHARE DATA

Net Asset Value,
Beginning of Period      $7.62      $7.19      $7.32      $7.72      $5.61     $7.20
                      --------   --------   --------   --------   --------  --------
Income From
Investment
Operations

 Net
 Investment
 Income
 (Loss)(2)                0.07       0.13       0.14       0.10       0.10      0.09

 Net Realized
 and
 Unrealized
 Gain (Loss)              0.23       0.94       0.57       0.65       2.18    (1.50)
                      --------   --------   --------   --------   --------  --------
 Total From
 Investment
 Operations               0.30       1.07       0.71       0.75       2.28    (1.41)
                      --------   --------   --------   --------   --------  --------
Distributions

 From Net
 Investment
 Income                 (0.05)     (0.13)     (0.12)     (0.10)     (0.09)    (0.08)

 From Net
 Realized
 Gains                      --     (0.51)     (0.72)     (1.05)     (0.08)    (0.10)
                      --------   --------   --------   --------   --------  --------
 Total
 Distributions          (0.05)     (0.64)     (0.84)     (1.15)     (0.17)    (0.18)
                      --------   --------   --------   --------   --------  --------
Net Asset Value,
End of Period            $7.87      $7.62      $7.19      $7.32      $7.72     $5.61
                      ========   ========   ========   ========   ========  ========

TOTAL RETURN(3)          4.00%     15.11%     10.10%     10.30%     40.93%  (19.70)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to
Average Net Assets    0.79%(4)      0.79%      0.79%      0.79%      0.80%     0.80%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets            1.70%(4)      1.78%      1.91%      1.36%      1.46%     1.38%

Portfolio Turnover
Rate                       81%       140%       134%       130%       122%      102%

Net Assets, End of
Period (in
thousands)            $378,797   $289,536   $254,778   $251,812   $223,282  $179,196

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

(2) Computed using the average shares throughout the period.

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

(4) Annualized.

See Notes to Financial Statements.


------
48


Value

A Class(1)
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                      2007(2)       2007      2006       2005       2004       2003
PER-SHARE DATA

Net Asset Value,
Beginning of
Period                  $7.61      $7.18     $7.31      $7.72      $5.60      $7.19
                     --------   --------  --------   --------   --------   --------
Income From
Investment
Operations

 Net
 Investment
 Income
 (Loss)(3)               0.05       0.10      0.10       0.07       0.07       0.06

 Net Realized
 and
 Unrealized
 Gain (Loss)             0.23       0.93      0.57       0.64       2.19     (1.49)
                     --------   --------  --------   --------   --------   --------
 Total From
 Investment
 Operations              0.28       1.03      0.67       0.71       2.26     (1.43)
                     --------   --------  --------   --------   --------   --------
Distributions

 From Net
 Investment
 Income                (0.04)     (0.09)    (0.08)     (0.07)     (0.06)     (0.06)
 From Net
 Realized
 Gains                     --     (0.51)    (0.72)     (1.05)     (0.08)     (0.10)
                     --------   --------  --------   --------   --------   --------
 Total
 Distributions         (0.04)     (0.60)    (0.80)     (1.12)     (0.14)     (0.16)
                     --------   --------  --------   --------   --------   --------
Net Asset Value,
End of Period           $7.85      $7.61     $7.18      $7.31      $7.72      $5.60
                     ========   ========  ========   ========   ========   ========

TOTAL RETURN(4)         3.64%     14.62%     9.61%      9.67%     40.56%   (20.07)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net Assets   1.24%(5)      1.24%     1.24%      1.24%      1.25%      1.25%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets           1.25%(5)      1.33%     1.46%      0.91%      1.01%      0.94%

Portfolio
Turnover Rate             81%       140%      134%       130%       122%       102%

Net Assets, End
of Period (in
thousands)           $312,577   $249,265  $214,835   $236,960   $403,212   $210,984

(1) Prior to September 4, 2007, the A Class was referred to as the Advisor
Class.

(2) Six months ended September 30, 2007 (unaudited).

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

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

(5) Annualized.

See Notes to Financial Statements.


------
49


Value

B Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                        2007(1)     2007    2006     2005     2004         2003(2)
PER-SHARE DATA

Net Asset Value,
Beginning of Period       $7.61    $7.18   $7.31    $7.73    $5.61           $5.77
                       --------   ------  ------   ------   ------        --------
Income From
Investment
Operations

 Net Investment
 Income
 (Loss)(3)                 0.02     0.04    0.05     0.01     0.01           --(4)

 Net Realized
 and Unrealized
 Gain (Loss)               0.23     0.94    0.57     0.65     2.20          (0.15)
                       --------   ------  ------   ------   ------        --------
 Total From
 Investment
 Operations                0.25     0.98    0.62     0.66     2.21          (0.15)
                       --------   ------  ------   ------   ------        --------
Distributions

 From Net
 Investment
 Income                  (0.01)   (0.04)  (0.03)   (0.03)   (0.01)          (0.01)

 From Net
 Realized Gains              --   (0.51)  (0.72)   (1.05)   (0.08)              --
                       --------   ------  ------   ------   ------        --------
 Total
 Distributions           (0.01)   (0.55)  (0.75)   (1.08)   (0.09)          (0.01)
                       --------   ------  ------   ------   ------        --------
Net Asset Value,
End of Period             $7.85    $7.61   $7.18    $7.31    $7.73           $5.61
                       ========   ======  ======   ======   ======        ========

TOTAL RETURN(5)           3.26%   13.78%   8.81%    8.93%   39.51%         (2.59)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to Average
Net Assets             1.99%(6)    1.99%   1.99%    1.99%    2.00%     1.98%(6)(7)

Ratio of Net
Investment Income
(Loss) to Average
Net Assets             0.50%(6)    0.58%   0.71%    0.16%    0.26%   (0.17)%(6)(7)

Portfolio Turnover
Rate                        81%     140%    134%     130%     122%         102%(8)

Net Assets, End of
Period (in
thousands)               $7,808   $7,740  $7,129   $5,059   $2,656             $91

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

(2) January 31, 2003 (commencement of sale) through March 31, 2003.

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

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

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

(6) Annualized.

(7) During the period ended March 31, 2003, the distributor voluntarily waived
a portion of the distribution and service fees. Had fees not been waived, the
annualized ratio of operating expenses to average net assets and annualized
ratio of net investment income (loss) to average net assets would have been
2.00% and (0.19)%, respectively.

(8) Portfolio turnover is calculated at the fund level. Percentage indicated
was calculated for the year ended March 31, 2003.

See Notes to Financial Statements.


------
50


Value

C Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                          2007(1)      2007     2006      2005     2004       2003
PER-SHARE DATA

Net Asset Value,
Beginning of Period         $7.56     $7.14    $7.27     $7.70    $5.58      $7.18
                         --------   -------  -------   -------   ------   --------
Income From
Investment Operations

 Net Investment
 Income (Loss)(2)            0.02      0.04     0.05      0.01     0.02       0.01

 Net Realized and
 Unrealized Gain
 (Loss)                      0.23      0.93     0.57      0.64     2.19     (1.50)
                         --------   -------  -------   -------   ------   --------
 Total From
 Investment
 Operations                  0.25      0.97     0.62      0.65     2.21     (1.49)
                         --------   -------  -------   -------   ------   --------
Distributions

 From Net
 Investment Income         (0.01)    (0.04)   (0.03)    (0.03)   (0.01)     (0.01)

 From Net Realized
 Gains                         --    (0.51)   (0.72)    (1.05)   (0.08)     (0.10)
                         --------   -------  -------   -------   ------   --------
 Total
 Distributions             (0.01)    (0.55)   (0.75)    (1.08)   (0.09)     (0.11)
                         --------   -------  -------   -------   ------   --------
Net Asset Value, End
of Period                   $7.80     $7.56    $7.14     $7.27    $7.70      $5.58
                         ========   =======  =======   =======   ======   ========

TOTAL RETURN(3)             3.28%    13.71%    8.87%     8.84%   39.73%   (20.90)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to Average
Net Assets               1.99%(4)     1.99%    1.99%     1.99%    2.00%      2.00%

Ratio of Net
Investment Income
(Loss) to Average Net
Assets                   0.50%(4)     0.58%    0.71%     0.16%    0.26%      0.19%

Portfolio Turnover
Rate                          81%      140%     134%      130%     122%       102%

Net Assets, End of
Period (in thousands)     $20,223   $22,274  $19,259   $13,885   $6,613     $2,461

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

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

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

(4) Annualized.

See Notes to Financial Statements.


------
51


Value

R Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                                                     2007(1)      2007     2006(2)
PER-SHARE DATA

Net Asset Value, Beginning of Period                   $7.61     $7.18       $7.60
                                                    --------    ------    --------
Income From Investment Operations

 Net Investment Income (Loss)(3)                        0.04      0.08        0.06

 Net Realized and Unrealized Gain (Loss)                0.24      0.94        0.29
                                                    --------    ------    --------
 Total From Investment Operations                       0.28      1.02        0.35
                                                    --------    ------    --------
Distributions

 From Net Investment Income                           (0.03)    (0.08)      (0.05)

 From Net Realized Gains                                  --    (0.51)      (0.72)
                                                    --------    ------    --------
 Total Distributions                                  (0.03)    (0.59)      (0.77)
                                                    --------    ------    --------
Net Asset Value, End of Period                         $7.86     $7.61       $7.18
                                                    ========    ======    ========

TOTAL RETURN(4)                                        3.64%    14.34%       4.99%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses to Average
Net Assets                                          1.49%(5)     1.49%    1.49%(5)

Ratio of Net Investment Income (Loss)
to Average Net Assets                               1.00%(5)     1.08%    1.17%(5)

Portfolio Turnover Rate                                  81%      140%     134%(6)

Net Assets, End of Period (in thousands)                $928      $331         $43

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

(2) July 29, 2005 (commencement of sale) through March 31, 2006.

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

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

(5) Annualized.

(6) Portfolio turnover is calculated at the fund level. Percentage indicated
was calculated for the year ended March 31, 2006.

See Notes to Financial Statements.


------
52


Large Company Value

Investor Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                        2007(1)         2007         2006      2005       2004       2003
PER-SHARE DATA

Net Asset Value,
Beginning of
Period                    $7.55        $6.72        $6.39     $5.89      $4.29      $5.53
                       --------     --------     --------  --------   --------   --------
Income From
Investment
Operations

 Net
 Investment
 Income
 (Loss)(2)                 0.07         0.13         0.12      0.12       0.09       0.08

 Net Realized
 and
 Unrealized
 Gain (Loss)               0.34         0.89         0.47      0.51       1.59     (1.25)
                       --------     --------     --------  --------   --------   --------
 Total From
 Investment
 Operations                0.41         1.02         0.59      0.63       1.68     (1.17)
                       --------     --------     --------  --------   --------   --------
Distributions

 From Net
 Investment
 Income                  (0.07)       (0.13)       (0.11)    (0.11)     (0.08)     (0.07)

 From Net
 Realized
 Gains                       --       (0.06)       (0.15)    (0.02)         --         --
                       --------     --------     --------  --------   --------   --------
 Total
 Distributions           (0.07)       (0.19)       (0.26)    (0.13)     (0.08)     (0.07)
                       --------     --------     --------  --------   --------   --------
Net Asset Value,
End of Period             $7.89        $7.55        $6.72     $6.39      $5.89      $4.29
                       ========     ========     ========  ========   ========   ========

TOTAL RETURN(3)           5.44%       15.37%        9.44%    10.73%     39.34%   (21.19)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net Assets     0.83%(4)        0.83%        0.84%     0.87%      0.90%      0.90%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets             1.82%(4)        1.86%        1.75%     1.90%      1.58%      1.75%

Portfolio
Turnover Rate                9%          12%          16%       18%        14%        30%

Net Assets, End
of Period (in
thousands)           $1,606,772   $1,498,119   $1,112,858  $659,277   $350,516   $152,641

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

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

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

(4) Annualized.

See Notes to Financial Statements.


------
53


Large Company Value

Institutional Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                      2007(1)       2007      2006       2005       2004       2003
PER-SHARE DATA

Net Asset Value,
Beginning of
Period                  $7.55      $6.72     $6.39      $5.89      $4.29      $5.53
                     --------   --------  --------   --------   --------   --------
Income From
Investment
Operations

 Net
 Investment
 Income
 (Loss)(2)               0.08       0.15      0.13       0.13       0.10       0.09

 Net Realized
 and
 Unrealized
 Gain (Loss)             0.34       0.88      0.47       0.51       1.59     (1.25)
                     --------   --------  --------   --------   --------   --------
 Total From
 Investment
 Operations              0.42       1.03      0.60       0.64       1.69     (1.16)
                     --------   --------  --------   --------   --------   --------
Distributions

 From Net
 Investment
 Income                (0.08)     (0.14)    (0.12)     (0.12)     (0.09)     (0.08)

 From Net
 Realized
 Gains                     --     (0.06)    (0.15)     (0.02)         --         --
                     --------   --------  --------   --------   --------   --------
 Total
 Distributions         (0.08)     (0.20)    (0.27)     (0.14)     (0.09)     (0.08)
                     --------   --------  --------   --------   --------   --------
Net Asset Value,
End of Period           $7.89      $7.55     $6.72      $6.39      $5.89      $4.29
                     ========   ========  ========   ========   ========   ========

TOTAL RETURN(3)         5.54%     15.60%     9.65%     10.94%     39.61%   (21.03)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net Assets   0.63%(4)      0.63%     0.64%      0.67%      0.70%      0.70%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets           2.02%(4)      2.06%     1.95%      2.10%      1.78%      1.95%

Portfolio
Turnover Rate              9%        12%       16%        18%        14%        30%

Net Assets, End
of Period (in
thousands)           $622,034   $587,012  $527,109   $438,518   $151,622    $21,110

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

(2) Computed using the average shares throughout the period.

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

(4) Annualized.

See Notes to Financial Statements.


------
54


Large Company Value

Advisor Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                      2007(1)       2007       2006      2005      2004       2003
PER-SHARE DATA

Net Asset Value,
Beginning of
Period                  $7.55      $6.72      $6.39     $5.89     $4.29      $5.53
                     --------   --------   --------  --------   -------   --------
Income From
Investment
Operations

 Net
 Investment
 Income
 (Loss)(2)               0.06       0.12       0.10      0.10      0.07       0.07

 Net Realized
 and
 Unrealized
 Gain (Loss)             0.34       0.88       0.47      0.51      1.60     (1.25)
                     --------   --------   --------  --------   -------   --------
 Total From
 Investment
 Operations              0.40       1.00       0.57      0.61      1.67     (1.18)
                     --------   --------   --------  --------   -------   --------
Distributions

 From Net
 Investment
 Income                (0.06)     (0.11)     (0.09)    (0.09)    (0.07)     (0.06)

 From Net
 Realized
 Gains                     --     (0.06)     (0.15)    (0.02)        --         --
                     --------   --------   --------  --------   -------   --------
 Total
 Distributions         (0.06)     (0.17)     (0.24)    (0.11)    (0.07)     (0.06)
                     --------   --------   --------  --------   -------   --------
Net Asset Value,
End of Period           $7.89      $7.55      $6.72     $6.39     $5.89      $4.29
                     ========   ========   ========  ========   =======   ========

TOTAL RETURN(3)         5.31%     15.08%      9.17%    10.45%    38.99%   (21.38)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net Assets   1.08%(4)      1.08%      1.09%     1.12%     1.15%      1.15%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets           1.57%(4)      1.61%      1.50%     1.65%     1.33%      1.50%

Portfolio
Turnover Rate              9%        12%        16%       18%       14%        30%

Net Assets, End
of Period (in
thousands)           $259,913   $282,930   $184,601  $104,612   $19,265     $1,090

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

(2) Computed using the average shares throughout the period.

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

(4) Annualized.

See Notes to Financial Statements.


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55


Large Company Value

A Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                      2007(1)       2007       2006      2005      2004    2003(2)
PER-SHARE DATA

Net Asset Value,
Beginning of
Period                  $7.56      $6.72      $6.39     $5.90     $4.29      $4.46
                     --------   --------   --------  --------   -------   --------
Income From
Investment
Operations

 Net
 Investment
 Income
 (Loss)(3)               0.06       0.12       0.10      0.10      0.07       0.01

 Net Realized
 and
 Unrealized
 Gain (Loss)             0.33       0.89       0.47      0.50      1.61     (0.17)
                     --------   --------   --------  --------   -------   --------
 Total From
 Investment
 Operations              0.39       1.01       0.57      0.60      1.68     (0.16)
                     --------   --------   --------  --------   -------   --------
Distributions

 From Net
 Investment
 Income                (0.06)     (0.11)     (0.09)    (0.09)    (0.07)     (0.01)

 From Net
 Realized
 Gains                     --     (0.06)     (0.15)    (0.02)        --         --
                     --------   --------   --------  --------   -------   --------
 Total
 Distributions         (0.06)     (0.17)     (0.24)    (0.11)    (0.07)     (0.01)
                     --------   --------   --------  --------   -------   --------
Net Asset Value,
End of Period           $7.89      $7.56      $6.72     $6.39     $5.90      $4.29
                     ========   ========   ========  ========   =======   ========

TOTAL RETURN(4)         5.17%     15.23%      9.16%    10.25%    39.22%    (3.49)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net Assets  1.08%(5)   1.08%      1.09%      1.12%     1.15%     1.15%(5)

Ratio of Net
Investment Income
(Loss) to Average
Net Assets          1.57%(5)   1.61%      1.50%      1.65%     1.33%     1.79%(5)

Portfolio
Turnover Rate       9%         12%        16%        18%       14%       30%(6)

Net Assets, End
of Period (in
thousands)          $228,475   $239,545   $236,313   $245,416  $92,171   $3,733

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

(2) January 31, 2003 (commencement of sale) through March 31, 2003.

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

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

(5) Annualized.

(6) Portfolio turnover is calculated at the fund level. Percentage indicated
was calculated for the year ended March 31, 2003.

See Notes to Financial Statements.


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56


Large Company Value

B Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                       2007(1)      2007      2006     2005     2004       2003(2)
PER-SHARE DATA

Net Asset Value,
Beginning of Period      $7.57     $6.74     $6.41    $5.91    $4.29         $4.46
                      --------   -------   -------  -------   ------      --------
Income From
Investment
Operations

 Net Investment
 Income
 (Loss)(3)                0.03      0.06      0.05     0.05     0.03          0.01

 Net Realized
 and Unrealized
 Gain (Loss)              0.34      0.89      0.47     0.52     1.62        (0.17)
                      --------   -------   -------  -------   ------      --------
 Total From
 Investment
 Operations               0.37      0.95      0.52     0.57     1.65        (0.16)
                      --------   -------   -------  -------   ------      --------
Distributions

 From Net
 Investment
 Income                 (0.03)    (0.06)    (0.04)   (0.05)   (0.03)        (0.01)
 From Net
 Realized Gains             --    (0.06)    (0.15)   (0.02)       --            --
                      --------   -------   -------  -------   ------      --------
 Total
 Distributions          (0.03)    (0.12)    (0.19)   (0.07)   (0.03)        (0.01)
                      --------   -------   -------  -------   ------      --------
Net Asset Value,
End of Period            $7.91     $7.57     $6.74    $6.41    $5.91         $4.29
                      ========   =======   =======  =======   ======      ========

TOTAL RETURN(4)          4.90%    14.18%     8.33%    9.59%   38.41%       (3.58)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to
Average Net Assets    1.83%(5)     1.83%     1.84%    1.87%    1.90%   1.88%(5)(6)

Ratio of Net
Investment Income
(Loss) to Average
Net Assets            0.82%(5)     0.86%     0.75%    0.90%    0.58%   0.74%(5)(6)

Portfolio Turnover
Rate                        9%       12%       16%      18%      14%        30%(7)

Net Assets, End of
Period (in
thousands)             $17,486   $17,374   $15,954  $13,009   $5,642           $88

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

(2) January 31, 2003 (commencement of sale) through March 31, 2003.

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

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

(5) Annualized.

(6) During the period ended March 31, 2003, the distributor voluntarily waived
a portion of the distribution and service fees. Had fees not been waived, the
annualized ratio of operating expenses to average net assets and annualized
ratio of net investment income (loss) to average net assets would have been
1.90% and 0.72%, respectively.

(7) Portfolio turnover is calculated at the fund level. Percentage indicated
was calculated for the year ended March 31, 2003.

See Notes to Financial Statements.


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57


Large Company Value

C Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
                         2007(1)      2007     2006      2005      2004       2003
PER-SHARE DATA

Net Asset Value,
Beginning of Period        $7.55     $6.72    $6.39     $5.89     $4.28      $5.53
                        --------   -------  -------   -------   -------   --------
Income From
Investment Operations

 Net Investment
 Income (Loss)(2)           0.03      0.06     0.05      0.05      0.03       0.03

 Net Realized and
 Unrealized Gain
 (Loss)                     0.33      0.89     0.47      0.52      1.61     (1.25)
                        --------   -------  -------   -------   -------   --------
 Total From
 Investment
 Operations                 0.36      0.95     0.52      0.57      1.64     (1.22)
                        --------   -------  -------   -------   -------   --------
Distributions

 From Net
 Investment
 Income                   (0.03)    (0.06)   (0.04)    (0.05)    (0.03)     (0.03)

 From Net
 Realized Gains               --    (0.06)   (0.15)    (0.02)        --         --
                        --------   -------  -------   -------   -------   --------
 Total
 Distributions            (0.03)    (0.12)   (0.19)    (0.07)    (0.03)     (0.03)
                        --------   -------  -------   -------   -------   --------
Net Asset Value, End
of Period                  $7.88     $7.55    $6.72     $6.39     $5.89      $4.28
                        ========   =======  =======   =======   =======   ========

TOTAL RETURN(3)            4.91%    14.22%    8.35%     9.62%    38.27%   (22.13)%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating
Expenses to Average
Net Assets              1.83%(4)     1.83%    1.84%     1.87%     1.90%      1.90%

Ratio of Net
Investment Income
(Loss) to Average
Net Assets              0.82%(4)     0.86%    0.75%     0.90%     0.58%      0.75%

Portfolio Turnover
Rate                          9%       12%      16%       18%       14%        30%

Net Assets, End of
Period (in thousands)    $73,647   $71,792  $61,682   $40,789   $11,030     $1,163

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

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

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

(4) Annualized.

See Notes to Financial Statements.


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58


Large Company Value

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

Net Asset Value, Beginning
of Period                          $7.56     $6.72     $6.39      $5.89      $5.18
                                --------   -------   -------   --------   --------
Income From Investment
Operations

 Net Investment Income
 (Loss)(3)                          0.05      0.10      0.09       0.09       0.03

 Net Realized and
 Unrealized Gain (Loss)             0.33      0.89      0.47       0.51       0.72
                                --------   -------   -------   --------   --------
 Total From Investment
 Operations                         0.38      0.99      0.56       0.60       0.75
                                --------   -------   -------   --------   --------
Distributions

 From Net Investment
 Income                           (0.05)    (0.09)    (0.08)     (0.08)     (0.04)

 From Net Realized Gains              --    (0.06)    (0.15)     (0.02)         --
                                --------   -------   -------   --------   --------
 Total Distributions              (0.05)    (0.15)    (0.23)     (0.10)     (0.04)
                                --------   -------   -------   --------   --------
Net Asset Value, End of
Period                             $7.89     $7.56     $6.72      $6.39      $5.89
                                ========   =======   =======   ========   ========

TOTAL RETURN(4)                    5.04%    14.95%     8.90%     10.17%     14.63%

RATIOS/SUPPLEMENTAL DATA

Ratio of Operating Expenses
to Average Net Assets           1.33%(5)     1.33%     1.34%   1.33%(6)   1.40%(5)

Ratio of Net Investment
Income (Loss) to Average Net
Assets                          1.32%(5)     1.36%     1.25%   1.44%(6)   0.77%(5)

Portfolio Turnover Rate               9%       12%       16%        18%     14%(7)

Net Assets, End of Period
(in thousands)                   $20,381   $17,765   $10,984     $2,143       $168

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

(2) August 29, 2003 (commencement of sale) through March 31, 2004.

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

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

(5) Annualized.

(6) During the year ended March 31, 2005, the class received a partial
reimbursement of its distribution and service fee. Had fees not been
reimbursed, the ratio of operating expenses to average net assets and ratio of
net investment income (loss) to average net assets would have been 1.37% and
1.40%, respectively.

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

See Notes to Financial Statements.


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59


PROXY VOTING RESULTS

A special meeting of shareholders was held on July 27, 2007 and September 25,
2007, to vote on the following proposals. The proposals received the required
number of votes of the American Century Capital Portfolios, Inc. or the
applicable fund, depending on the proposal, and were adopted. A summary of
voting results is listed below each proposal.

PROPOSAL 1:

To elect nine Directors to the Board of Directors of American Century Capital
Portfolios, Inc. (the proposal was voted on by all shareholders of funds
issued by American Century Capital Portfolios, Inc.).

James E. Stowers, Jr.       For:                 11,443,781,487
                            Withhold:               252,686,939
                            Abstain:                          0
                            Broker Non-Vote:                  0

Jonathan S. Thomas          For:                 11,454,104,706
                            Withhold:               242,363,720
                            Abstain:                          0
                            Broker Non-Vote:                  0

Thomas A. Brown             For:                 11,456,645,347
                            Withhold:               239,823,079
                            Abstain:                          0
                            Broker Non-Vote:                  0

Andrea C. Hall              For:                 11,459,598,200
                            Withhold:               236,870,226
                            Abstain:                          0
                            Broker Non-Vote:                  0

James A. Olson              For:                 11,454,607,738
                            Withhold:               241,860,688
                            Abstain:                          0
                            Broker Non-Vote:                  0

Donald H. Pratt             For:                 11,450,710,462
                            Withhold:               245,757,964
                            Abstain:                          0
                            Broker Non-Vote:                  0

Gale E. Sayers              For:                 11,458,471,500
                            Withhold:               237,996,926
                            Abstain:                          0
                            Broker Non-Vote:                  0

M. Jeannine Strandjord      For:                 11,451,541,828
                            Withhold:               244,926,598
                            Abstain:                          0
                            Broker Non-Vote:                  0

Timothy S. Webster          For:                 11,460,198,888
                            Withhold:               236,269,538
                            Abstain:                          0
                            Broker Non-Vote:                  0


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60


PROPOSAL 2:

To approve a change in the fee structure of the Advisor Class. This proposal
was voted on by the Advisor Class shareholders of the following funds:

                       Equity Income      Value       Large Company Value

For:                      621,408,436   126,650,418            130,489,680
Against:                   36,347,838     3,056,983              1,765,929
Abstain:                   31,014,717     1,704,059              2,468,013
Broker Non-Vote:          207,433,476     9,910,146             15,611,505

PROPOSAL 3:

To approve the reclassification of the A Class shares of the funds, whereby
all of the A Class shares will be reclassified as Advisor Class shares of the
funds. This proposal was voted on by the A Class shareholders of the following
funds:

                          Value      Large Company Value

For:                    35,681,109            123,678,866
Against:                   904,615              6,476,448
Abstain:                 1,574,273              7,515,962
Broker Non-Vote:        28,523,216             89,978,839


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61


APPROVAL OF MANAGEMENT AGREEMENTS
Equity Income, Value and Large Company Value

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

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

ANNUAL CONTRACT REVIEW PROCESS

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

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

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

* data comparing the cost of owning the funds to the cost of owning similar
funds;

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

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

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

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


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62


FACTORS CONSIDERED

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

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

* fund construction and design

* portfolio security selection

* initial capitalization/funding

* securities trading

* custody of fund assets

* daily valuation of the funds' portfolio

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

* legal services

* regulatory and portfolio compliance

* financial reporting

* marketing and distribution

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

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


------
63


to conduct their business. At each quarterly meeting the Directors review
investment performance information for the funds, together with comparative
information for appropriate benchmarks and peer groups of funds managed
similarly to the funds. The Directors also review detailed performance
information during the 15(c) Process comparing the funds' performance with
that of similar funds not managed by the advisor. If performance concerns are
identified, the Directors discuss with the advisor the reasons for such
results (e.g., market conditions, security selection) and any efforts being
undertaken to improve performance. Equity Income's and Value's performance was
above the median for the one-year period and below the median for the
three-year period for each fund's respective peer group. Large Company Value's
performance was above below the median for the one-year period and equal to
the median for the three-year period for its peer group.

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

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

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

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


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64


COMPARISON TO OTHER FUNDS' FEES. The funds pay the advisor a single,
all-inclusive (or unified) management fee for providing all services necessary
for the management and operation of the funds, other than brokerage expenses,
taxes, interest, extraordinary expenses, and the fees and expenses of the
funds' independent directors (including their independent legal counsel).
Under the unified fee structure, the advisor is responsible for providing all
investment advisory, custody, audit, administrative, compliance,
recordkeeping, marketing and shareholder services, or arranging and
supervising third parties to provide such services. By contrast, most other
funds are charged a variety of fees, including an investment advisory fee, a
transfer agency fee, an administrative fee, distribution charges and other
expenses. Other than their investment advisory fees and Rule 12b-1
distribution fees, all other components of the total fees charged by these
other funds may be increased without shareholder approval. The board believes
the unified fee structure is a benefit to fund shareholders because it clearly
discloses to shareholders the cost of owning fund shares, and, since the
unified fee cannot be increased without a vote of fund shareholders, it shifts
to the advisor the risk of increased costs of operating the funds and provides
a direct incentive to minimize administrative inefficiencies. Part of the
Directors' analysis of fee levels involves reviewing certain evaluative data
compiled by a 15(c) Provider comparing the funds' unified fee to the total
expense ratio of other funds in the funds' peer group. The unified fee charged
to shareholders of the funds was below the median of the total expense ratios
of their respective peer groups.

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

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

CONCLUSIONS OF THE DIRECTORS

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


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65


SHARE CLASS INFORMATION

Six classes of shares are authorized for sale by Equity Income and Value:
Investor Class, Institutional Class, A Class, B Class, C Class and R Class.
Seven classes of shares are authorized for sale by Large Company Value:
Investor Class, Institutional Class, Advisor Class, A Class, B Class, C Class
and R Class. The total expense ratio of Institutional Class shares is lower
than that of Investor Class shares. The expense ratios of Advisor Class, A
Class, B Class, C Class and R Class shares are higher that that of Investor
Class shares.

INVESTOR CLASS shares are available for purchase in two ways: 1) directly from
American Century without any commissions or other fees; and/or 2) through
certain financial intermediaries (such as banks, broker-dealers, insurance
companies and investment advisors), which may require payment of a transaction
fee to the financial intermediary. The funds' prospectuses contain additional
information regarding eligibility for Investor Class shares.

INSTITUTIONAL CLASS shares are available to large investors such as
endowments, foundations, and retirement plans, and to financial intermediaries
serving these investors. This class recognizes the relatively lower cost of
serving institutional customers and others who invest at least $5 million ($3
million for endowments and foundations) in an American Century fund or at
least $10 million in multiple funds. In recognition of the larger investments
and account balances and comparatively lower transaction costs, the unified
management fee of Institutional Class shares is 0.20% less than the unified
management fee of Investor Class shares.

ADVISOR CLASS shares are sold primarily through institutions such as
investment advisors, banks, broker-dealers, insurance companies, and financial
advisors. The unified management fee for Advisor Class shares is the same as
for Investor Class shares. Advisor Class shares are subject to a 0.25% annual
Rule 12b-1 distribution and service fee.

A CLASS shares are sold primarily through employer-sponsored retirement plans
and through institutions such as investment advisors, banks, broker-dealers,
and insurance companies. A Class shares are sold at their offering price,
which is net asset value plus an initial sales charge that ranges from 5.75%
to 0.00% for equity funds, depending on the amount invested. The initial sales
charge is deducted from the purchase amount before it is invested. A Class
shares may be subject to a contingent deferred sales charge (CDSC). There is
no CDSC on shares acquired through reinvestment of dividends or capital gains.
The prospectus contains information regarding reductions and waivers of sales
charges for A Class shares. The unified management fee for A Class shares is
the same as for Investor Class shares. A Class shares also are subject to a
0.25% annual Rule 12b-1 distribution and service fee.

B CLASS shares are sold primarily through employer-sponsored retirement plans
and through institutions such as investment advisors, banks, broker-dealers,
and insurance companies. B Class shares redeemed within six years of purchase
are subject to a CDSC that declines from 5.00% during the first year after
purchase to 0.00% after the sixth year. There is no CDSC on shares acquired
through reinvestment of dividends or capital gains. The unified management fee
for B Class shares is the same as for Investor Class shares. B Class shares
also are subject to a 1.00% annual Rule 12b-1 distribution and service fee. B
Class shares automatically convert to A Class shares (with lower expenses)
eight years after their purchase date.


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66


C CLASS shares are sold primarily through employer-sponsored retirement plans
and through institutions such as investment advisors, banks, broker-dealers,
and insurance companies. C Class shares redeemed within 12 months of purchase
are subject to a CDSC of 1.00%. There is no CDSC on shares acquired through
reinvestment of dividends or capital gains. The unified management fee for C
Class shares is the same as for Investor Class shares. C Class shares also are
subject to a Rule 12b-1 distribution and service fee of 1.00%.

R CLASS shares are sold primarily through employer-sponsored retirement plans
and through institutions such as investment advisors, banks, broker-dealers,
and insurance companies. The unified management fee for R Class shares is the
same as for Investor Class shares. R Class shares are subject to a 0.50%
annual Rule 12b-1 distribution and service fee.

All classes of shares represent a pro rata interest in the funds and generally
have the same rights and preferences.


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67


ADDITIONAL INFORMATION

RETIREMENT ACCOUNT INFORMATION

As required by law, any distributions you receive from an IRA or certain
403(b), 457 and qualified plans [those not eligible for rollover to an IRA or
to another qualified plan] are subject to federal income tax withholding,
unless you elect not to have withholding apply. Tax will be withheld on the
total amount withdrawn even though you may be receiving amounts that are not
subject to withholding, such as nondeductible contributions. In such case,
excess amounts of withholding could occur. You may adjust your withholding
election so that a greater or lesser amount will be withheld.

If you don't want us to withhold on this amount, you must notify us to not
withhold the federal income tax. Even if you plan to roll over the amount you
withdraw to another tax-deferred account, the withholding rate still applies
to the withdrawn amount unless we have received notice not to withhold federal
income tax prior to the withdrawal. You may notify us in writing or in certain
situations by telephone or through other electronic means. You have the right
to revoke your withholding election at any time and any election you make may
remain in effect until revoked by filing a new election.

Remember, even if you elect not to have income tax withheld, you are liable
for paying income tax on the taxable portion of your withdrawal. If you elect
not to have income tax withheld or you don't have enough income tax withheld,
you may be responsible for payment of estimated tax. You may incur penalties
under the estimated tax rules if your withholding and estimated tax payments
are not sufficient.

State tax will be withheld if, at the time of your distribution, your address
is within one of the mandatory withholding states and you have federal income
tax withheld. State taxes will be withheld from your distribution in
accordance with the respective state rules.

PROXY VOTING GUIDELINES

American Century Investment Management, Inc., the funds' investment advisor,
is responsible for exercising the voting rights associated with the securities
purchased and/or held by the funds. A description of the policies and
procedures the advisor uses in fulfilling this responsibility is available
without charge, upon request, by calling 1-800-345-2021. It is also available
on American Century's website at americancentury.com and on the Securities and
Exchange Commission's website at sec.gov. Information regarding how the
investment advisor voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is available on the "About Us" page
at americancentury.com. It is also available at sec.gov.

QUARTERLY PORTFOLIO DISCLOSURE

The funds file their complete schedule of portfolio holdings with the
Securities and Exchange Commission (SEC) for the first and third quarters of
each fiscal year on Form N-Q. The funds' Forms N-Q are available on the SEC's
website at sec.gov, and may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330. The funds also make
their complete schedule of portfolio holdings for the most recent quarter of
their fiscal year available on their website at americancentury.com and, upon
request, by calling 1-800-345-2021.


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68


INDEX DEFINITIONS

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

The LIPPER EQUITY INCOME FUNDS INDEX is an equally-weighted index of,
typically, the 30 largest equity income mutual funds that purchase securities
of companies of all market capitalizations.

The LIPPER MULTI-CAP VALUE FUNDS INDEX is an equally-weighted index of,
typically, the 30 largest mutual funds that use a value investment strategy to
purchase securities of companies of all market capitalizations.

The RUSSELL 1000® INDEX is a market-capitalization weighted, large-cap index
created by Frank Russell Company to measure the performance of the 1,000
largest companies in the Russell 3000 Index (the 3,000 largest publicly traded
U.S. companies, based on total market capitalization).

The RUSSELL 1000® GROWTH INDEX measures the performance of those Russell 1000
Index companies (the 1,000 largest of the 3,000 largest publicly traded U.S.
companies, based on total market capitalization) with higher price-to-book
ratios and higher forecasted growth values.

The RUSSELL 1000® VALUE INDEX measures the performance of those Russell 1000
Index companies (the 1,000 largest of the 3,000 largest publicly traded U.S.
companies, based on total market capitalization) with lower price-to-book
ratios and lower forecasted growth values.

The RUSSELL 2000® INDEX is a market-capitalization weighted index created by
Frank Russell Company to measure the performance of the 2,000 smallest of the
3,000 largest publicly traded U.S. companies, based on total market
capitalization.

The RUSSELL 2000® GROWTH INDEX measures the performance of those Russell 2000
Index companies (the 2,000 smallest of the 3,000 largest publicly traded U.S.
companies, based on total market capitalization) with higher price-to-book
ratios and higher forecasted growth values.

The RUSSELL 2000® VALUE INDEX measures the performance of those Russell 2000
Index companies (the 2,000 smallest of the 3,000 largest publicly traded U.S.
companies, based on total market capitalization) with lower price-to-book
ratios and lower forecasted growth values.

The RUSSELL 3000® INDEX measures the performance of the 3,000 largest U.S.
companies based on total market capitalization, which represents approximately
98% of the investable U.S. equity market.

The RUSSELL 3000® VALUE INDEX measures the performance of those Russell 3000
Index companies (the 3,000 largest U.S. companies based on total market
capitalization) with lower price-to-book ratios and lower forecasted growth
values.

The RUSSELL MIDCAP® INDEX measures the performance of the 800 smallest of the
1,000 largest publicly traded U.S. companies, based on total market
capitalization.


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69


The RUSSELL MIDCAP® GROWTH INDEX measures the performance of those Russell
Midcap Index companies (the 800 smallest of the 1,000 largest publicly traded
U.S. companies, based on total market capitalization) with higher
price-to-book ratios and higher forecasted growth values.

The RUSSELL MIDCAP® VALUE INDEX measures the performance of those Russell
Midcap Index companies (the 800 smallest of the 1,000 largest publicly traded
U.S. companies, based on total market capitalization) with lower price-to-book
ratios and lower forecasted growth values.

The S&P 500 INDEX is a market value-weighted index of the stocks of 500
publicly traded U.S. companies chosen for market size, liquidity, and industry
group representation that are considered to be leading firms in dominant
industries. Each stock's weight in the index is proportionate to its market
value. Created by Standard & Poor's, it is considered to be a broad measure of
U.S. stock market performance.


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70


NOTES


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71


NOTES


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72


[back cover]

CONTACT US

AMERICANCENTURY.COM

AUTOMATED INFORMATION LINE:
1-800-345-8765

INVESTOR SERVICES REPRESENTATIVE:
1-800-345-2021 or 816-531-5575

INVESTORS USING ADVISORS:
1-800-378-9878

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

BANKS AND TRUST COMPANIES, BROKER-DEALERS,
FINANCIAL PROFESSIONALS, INSURANCE COMPANIES:
1-800-345-6488

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

AMERICAN CENTURY CAPITAL PORTFOLIOS, INC.

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

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

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

PRSRT STD
U.S. POSTAGE PAID
AMERICAN CENTURY
COMPANIES

American Century Investment Services, Inc., Distributor

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

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

0711
SH-SAN-56796S












[front cover]

AMERICAN CENTURY INVESTMENTS
Semiannual Report               September 30, 2007

[photo of fall]

Equity Index Fund

[american century investments logo and text logo]




OUR MESSAGE TO YOU

To help you monitor your investment, my colleagues and I take pride in
providing you with the semiannual report for the American Century® Equity
Index Fund for the six months ended September 30, 2007. This has been an
eventful and exciting period for us. We've been working diligently to secure a
smooth executive leadership transition.

I'm honored to be addressing you in the "Our Message" space long devoted to
company founder Jim Stowers, Jr. and his son Jim Stowers III. The Stowers
family remains an integral part of our heritage, leadership, and financial
structure. Jim Jr. continues as co-chair of the American Century Companies,
Inc. (ACC) board of directors with Richard Brown, who has been on the board
since 1998 and co-chairs the Stowers Institute for Medical Research board.

But times and opportunities change. As the latest step in a career transition
that began when he relinquished his executive leadership and investment
management responsibilities in early 2005, Jim III stepped down from the ACC
board in July 2007 to focus on new business ventures. Jim III's move reflects
his family's comfort with our direction and leadership, and gives the Stowers
more leeway to devote time and energy to other important priorities, such as
the Stowers Institute for Medical Research.

Meanwhile, American Century Investments, our clients, and our employees have
been my top priority since I became company president and CEO in March. We've
also added the executive talents of overall chief investment officer Enrique
Chang, international equity CIO Mark On, U.S. growth equity CIO Steve Lurito,
and chief operating officer Barry Fink.

This skilled group, combined with our existing senior management team, has
already had a positive impact on the development and management of the
products and services we take pride in delivering to you.

/s/Jonathan Thomas
Jonathan Thomas

[photo of Jonathan Thomas]

Jonathan Thomas
PRESIDENT
AMERICAN CENTURY COMPANIES, INC.

[photo of James E. Stowers, Jr.]

James E. Stowers, Jr.
FOUNDER AND CO-CHAIRMAN OF THE BOARD
AMERICAN CENTURY COMPANIES, INC.

[photo of Richard Brown]

Richard Brown
CO-CHAIRMAN OF THE BOARD
AMERICAN CENTURY COMPANIES, INC.




TABLE OF CONTENTS

     Market Perspective. . . . . . . . . . . . . . . . . . . . . . . . . .    2
      U.S. Stock Index Returns . . . . . . . . . . . . . . . . . . . . . .    2

EQUITY INDEX

     Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    3
     Portfolio Commentary. . . . . . . . . . . . . . . . . . . . . . . . .    5
      Top Ten Holdings . . . . . . . . . . . . . . . . . . . . . . . . . .    5
      Top Five Industries. . . . . . . . . . . . . . . . . . . . . . . . .    6
      Types of Investments in Portfolio. . . . . . . . . . . . . . . . . .    6
     Shareholder Fee Example . . . . . . . . . . . . . . . . . . . . . . .    7
     Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . .    9

FINANCIAL STATEMENTS

     Statement of Assets and Liabilities . . . . . . . . . . . . . . . . .   17
     Statement of Operations . . . . . . . . . . . . . . . . . . . . . . .   18
     Statement of Changes in Net Assets. . . . . . . . . . . . . . . . . .   19
     Notes to Financial Statements . . . . . . . . . . . . . . . . . . . .   20
     Financial Highlights. . . . . . . . . . . . . . . . . . . . . . . . .   25

OTHER INFORMATION

     Proxy Voting Results. . . . . . . . . . . . . . . . . . . . . . . . .   27
     Approval of Management Agreement for Equity Index . . . . . . . . . .   29
     Share Class Information . . . . . . . . . . . . . . . . . . . . . . .   34
     Additional Information. . . . . . . . . . . . . . . . . . . . . . . .   35
     Index Definitions . . . . . . . . . . . . . . . . . . . . . . . . . .   36

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




MARKET PERSPECTIVE

[photo of Chief Investment Officer]

By Enrique Chang, Chief Investment Officer, American Century Investments

STOCKS ADVANCED IN A VOLATILE ENVIRONMENT

U.S. stocks produced positive results for the six months ended September 30,
2007, overcoming a confluence of challenges that led to extraordinary market
volatility.

The stock market enjoyed a steady rally during the first half of the six-month
period thanks to corporate earnings growth, which decelerated but continued to
surpass expectations. Robust merger activity also boosted stocks as leveraged
buy-outs from private equity firms put the volume of deal-making ahead of last
year's record pace.

After reaching all-time highs in mid-July, however, the major stock indexes
declined sharply as worsening problems in the subprime mortgage market led to
a credit crisis that threatened to derail the economic expansion. Tighter
lending standards crimped funding for leveraged buy-outs, removing an
important leg of support for the stock market, and rising energy and commodity
prices sparked inflation worries despite slowing economic activity.

As investors grew increasingly risk-averse, the Federal Reserve (the Fed)
stepped in to provide a measure of relief and comfort. The Fed lowered its
discount rate in mid-August and federal funds rate target in September--the
Fed's first rate cuts since June 2003. The Fed's actions helped alleviate some
of the credit and economic concerns, allowing the major stock indexes to stage
a solid recovery during the final six weeks of the period.

LARGE-CAP AND GROWTH OUTPERFORMED

Large-cap stocks delivered the best returns (see the accompanying table),
followed by mid- and small-cap issues. Growth stocks, which have trailed value
issues for much of the decade, enjoyed a resurgence during the six-month
period, outpacing value shares by a wide margin across all market
capitalizations.

Energy was the best-performing sector in the stock market during the period,
benefiting from a 24% increase in the price of oil. Information technology and
industrials stocks also fared well. The only two sectors of the market to
decline during the period were financials and consumer discretionary.

U.S. Stock Index Returns
For the six months ended September 30, 2007*

RUSSELL 1000 INDEX (LARGE-CAP)             7.99%
Russell 1000 Growth Index                 11.35%
Russell 1000 Value Index                   4.67%

RUSSELL MIDCAP INDEX                       4.89%
Russell Midcap Growth Index                9.03%
Russell Midcap Value Index                -0.03%

RUSSELL 2000 INDEX (SMALL-CAP)             1.19%
Russell 2000 Growth Index                  6.70%
Russell 2000 Value Index                  -4.10%

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


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2


PERFORMANCE
Equity Index

Total Returns as of September 30, 2007
                                               Average Annual Returns
                                                              Since     Inception
                        6 months(1)   1 year    5 years     Inception      Date

INVESTOR CLASS             8.21%      16.01%     14.84%       3.62%      2/26/99

S&P 500 INDEX(2)           8.44%      16.44%     15.45%       4.13%         --

Institutional Class        8.50%      16.21%     15.11%       3.85%      2/26/99

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

(2) Data provided by Lipper Inc. -- A Reuters Company. ©2007 Reuters. All
rights reserved. Any copying, republication or redistribution of Lipper
content, including by caching, framing or similar means, is expressly
prohibited without the prior written consent of Lipper. Lipper shall not be
liable for any errors or delays in the content, or for any actions taken in
reliance thereon.

  The data contained herein has been obtained from company reports, financial
reporting services, periodicals and other resources believed to be reliable.
Although carefully verified, data on compilations is not guaranteed by Lipper
and may be incomplete. No offer or solicitations to buy or sell any of the
securities herein is being made by Lipper.

Data presented reflect past performance. Past performance is no guarantee of
future results. Current performance may be higher or lower than the
performance shown. Investment return and principal value will fluctuate, and
redemption value may be more or less than original cost. To obtain performance
data current to the most recent month end, please call 1-800-345-2021 or visit
americancentury.com.

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


------
3


Equity Index

Growth of $10,000 Over Life of Class

$10,000 investment made February 26, 1999

One-Year Returns Over Life of Class
Periods ended September 30
1999* 2000 2001 2002 2003 2004 2005 2006 2007

Investor
Class 4.02% 12.54% -26.89% -20.61% 23.56% 13.14% 11.87% 10.17% 16.01%

S&P 500
Index 4.38% 13.28% -26.62% -20.49% 24.40% 13.87% 12.25% 10.79% 16.44%

* From 2/26/99, the Investor Class's inception date. Not annualized.

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4

PORTFOLIO COMMENTARY
Equity Index

Subadvisor: Northern Trust Investments, N.A.

Effective August 1, 2007, Northern Trust Investments, N.A. replaced Barclays
Global Fund Advisors as the Equity Index portfolio's subadvisor. The change
was made because Barclays notified American Century that in light of its
current business model, it was not interested in continuing to provide
subadvisory services to Equity Index.

PERFORMANCE SUMMARY

Equity Index returned 8.21%* for the six months ended September 30, 2007,
compared with the 8.44% return of its benchmark, the S&P 500 Index. The
portfolio's results reflect operating expenses, whereas the index return does
not.

ENERGY AND TECHNOLOGY LED THE WAY

Eight of the ten sectors in the portfolio posted positive returns during the
reporting period. Energy and information technology stocks led the portfolio's
advance; nine of the portfolio's top ten individual performance contributors
came from these two sectors.

The portfolio's energy stocks returned 26% as a group, mirroring a similar
rise in the price of oil that was fueled by strong demand from China and other
emerging markets. Oil producer Exxon Mobil, the portfolio's largest holding,
was the portfolio's top performance contributor. Oil producers Chevron and
ConocoPhillips, as well as energy services provider Schlumberger, were also
among the top ten performance contributors.

Information technology stocks generated solid gains across the board, led by
computer and peripherals companies, semiconductor manufacturers, and
communications equipment makers. The best contributor in this sector was
consumer electronics maker Apple, which benefited from the continued success
of the iPod and the introduction of the iPhone. Other top-ten contributors
included networking products company Cisco Systems, chipmaker Intel, IT
services provider IBM, and computer hardware firm Hewlett-Packard.

INDUSTRIALS ALSO ADVANCED

The portfolio's industrials stocks enjoyed double-digit gains as a group
during the reporting period, boosted by global economic strength and increased
military spending. Industrial conglomerates were the best performers in this
sector, led by General Electric, which was the portfolio's second-best
performance contributor. Aerospace and defense stocks also produced strong
results; aerospace companies United Technologies and Boeing were the top
contributors in this segment, but defense contractors Honeywell International
and Raytheon also generated robust returns.

Top Ten Holdings as of September 30, 2007
% of net % of net
assets as of assets as of
9/30/07 3/31/07

Exxon Mobil Corp. 3.9% 3.3%
General Electric Co. 3.2% 2.8%
AT&T Inc. 2.0% 1.9%
Microsoft Corporation 1.8% 1.9%
Citigroup Inc. 1.8% 1.9%
Bank of America Corp. 1.7% 1.8%
Procter & Gamble Co. (The) 1.7% 1.5%
Cisco Systems Inc. 1.5% 1.2%
Chevron Corp. 1.5% 1.2%
Johnson & Johnson 1.5% 1.3%

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

------
5

Equity Index

FINANCIALS, CONSUMER DISCRETIONARY DECLINED

The only sectors of the portfolio to post negative returns for the reporting
period were financials and consumer discretionary. Eight of the portfolio's
ten biggest detractors from performance came from these two sectors.

The financials sector was hurt by the fallout from the subprime lending
meltdown. Commercial banks, thrifts, and mortgage finance companies (the
lenders) were hit the hardest, but diversified financial services providers
and capital markets firms (the investors) also felt the impact. Citigroup, the
portfolio's largest financial holding, was the biggest individual detractor in
the portfolio. Mortgage lender Countrywide Financial and commercial bank
National City were also significant detractors, each declining by more than
30% because of their exposure to the subprime mortgage market.

The consumer discretionary sector declined amid expectations of a slowdown in
consumer spending resulting from higher energy prices, tighter credit
conditions, and a weaker economy. Retailers and homebuilders suffered the
brunt of the decline. Home improvement retailer Home Depot was the biggest
detractor in this sector, dragged down by housing market weakness. Department
store chains Kohl's and Macy's were also among the portfolio's ten largest
detractors. Although a small part of the portfolio, homebuilders such as Pulte
Homes, Lennar, and D.R. Horton all declined by more than 40% for the reporting
period.

STARTING POINT FOR NEXT REPORTING PERIOD

The interest rate cuts made by the Federal Reserve (the Fed) helped stabilize
the stock market late in the reporting period, and the Fed is likely to lower
interest rates at least once more before the end of 2007 to provide additional
support to the flagging economy. However, corporate profit growth is expected
to continue decelerating into early 2008, and it is unclear whether the worst
of the housing and mortgage problems have passed. Consequently, uncertainty
may contribute to further stock market volatility in the coming months.

But regardless of the market's near-term outlook, a broad index fund should
remain a long-term core holding within a diversified portfolio.

Top Five Industries as of September 30, 2007
% of net % of net
assets as of assets as of
9/30/07 3/31/07

Oil, Gas & Consumable Fuels 9.5% 8.1%
Pharmaceuticals 6.3% 6.2%
Diversified Financial Services 5.3% 5.5%
Insurance 4.6% 4.7%
Industrial Conglomerates 4.0% 3.8%

Types of Investments in Portfolio
% of net % of net
assets as of assets as of
9/30/07 3/31/07

Common Stocks & Futures 103.6% 99.7%
Temporary Cash Investments -- 0.2%
Other Assets & Liabilities(1) (3.6)% 0.1%

(1) Includes securities lending collateral and other assets and liabilities.

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6

SHAREHOLDER FEE EXAMPLE (UNAUDITED)

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

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

------
7

Expenses Paid
Beginning Ending During Period*
Account Account Value 4/1/07 - Annualized
Value 4/1/07 9/30/07 9/30/07 Expense Ratio*
ACTUAL

Investor Class $1,000 $1,082.10 $2.55 0.49%

Institutional
Class $1,000 $1,085.00 $1.51 0.29%

HYPOTHETICAL

Investor Class $1,000 $1,022.55 $2.48 0.49%

Institutional
Class $1,000 $1,023.55 $1.47 0.29%

------
8

SCHEDULE OF INVESTMENTS
Equity Index

SEPTEMBER 30, 2007 (UNAUDITED)

Shares Value

Common Stocks -- 102.7%

AEROSPACE & DEFENSE -- 2.9%
62,163 Boeing Co. $ 6,526,494
31,977 General Dynamics Corp. 2,701,097
9,871 Goodrich Corporation 673,498
59,744 Honeywell International Inc. 3,552,976
9,853 L-3 Communications Holdings, Inc. 1,006,385
27,558 Lockheed Martin Corp. 2,989,767
27,271 Northrop Grumman Corp. 2,127,138
10,872 Precision Castparts Corp. 1,608,839
34,717 Raytheon Company 2,215,639
13,166 Rockwell Collins 961,645
78,623 United Technologies Corp. 6,327,579
--------------
30,691,057
--------------
AIR FREIGHT & LOGISTICS -- 0.9%
13,472 C.H. Robinson Worldwide Inc. 731,395
24,569 FedEx Corporation 2,573,603
83,423 United Parcel Service, Inc. Cl B 6,265,067
--------------
9,570,065
--------------
AIRLINES -- 0.1%
59,429 Southwest Airlines Co. 879,549
--------------
AUTO COMPONENTS -- 0.2%
16,598 Goodyear Tire & Rubber Co. (The)(1) 504,745
15,577 Johnson Controls, Inc. 1,839,800
--------------
2,344,545
--------------
AUTOMOBILES -- 0.4%
163,986 Ford Motor Co.(1)(2) 1,392,241
45,123 General Motors Corp. 1,656,014
20,325 Harley-Davidson, Inc. 939,218
--------------
3,987,473
--------------
BEVERAGES -- 2.3%
62,241 Anheuser-Busch Companies, Inc. 3,111,428
6,341 Brown-Forman Corp. Cl B 475,004
158,114 Coca-Cola Company (The) 9,086,812
22,058 Coca-Cola Enterprises Inc. 534,245
15,409 Constellation Brands Inc. Cl A(1) 373,052
4,567 Molson Coors Brewing Co. 455,193
10,584 Pepsi Bottling Group Inc. 393,407
128,382 PepsiCo, Inc. 9,405,265
--------------
23,834,406
--------------
BIOTECHNOLOGY -- 1.2%
87,718 Amgen Inc.(1) 4,962,207
22,592 Biogen Idec Inc.(1) 1,498,527

Shares Value

29,970 Celgene Corp.(1) $ 2,137,161
20,751 Genzyme Corp.(1) 1,285,732
73,845 Gilead Sciences, Inc.(1) 3,018,045
--------------
12,901,672
--------------
BUILDING PRODUCTS -- 0.1%
14,150 American Standard Companies Inc. 504,023
29,890 Masco Corp. 692,551
--------------
1,196,574
--------------
CAPITAL MARKETS -- 3.5%
14,205 American Capital Strategies Ltd.(2) 606,980
18,530 Ameriprise Financial Inc. 1,169,428
89,291 Bank of New York Mellon Corp. (The) 3,941,305
9,279 Bear Stearns Companies Inc. (The) 1,139,554
34,346 E*TRADE Financial Corp.(1) 448,559
7,190 Federated Investors Inc. Cl B 285,443
12,958 Franklin Resources, Inc. 1,652,145
32,270 Goldman Sachs Group, Inc. (The) 6,994,199
12,517 Janus Capital Group Inc. 353,981
10,382 Legg Mason, Inc. 875,099
42,060 Lehman Brothers Holdings Inc. 2,596,364
68,474 Merrill Lynch & Co., Inc. 4,880,827
83,311 Morgan Stanley 5,248,593
15,183 Northern Trust Corp. 1,006,177
74,619 Schwab (Charles) Corp. 1,611,770
31,355 State Street Corp. 2,137,157
20,973 T. Rowe Price Group Inc. 1,167,986
--------------
36,115,567
--------------
CHEMICALS -- 1.8%
17,130 Air Products & Chemicals, Inc. 1,674,629
4,495 Ashland Inc. 270,644
75,307 Dow Chemical Co. 3,242,719
73,028 du Pont (E.I.) de Nemours & Co. 3,619,268
6,769 Eastman Chemical Company 451,695
14,102 Ecolab Inc. 665,614
9,310 Hercules Inc.(2) 195,696
6,247 International Flavors & Fragrances Inc. 330,216
43,236 Monsanto Co. 3,707,056
12,911 PPG Industries, Inc. 975,426
25,246 Praxair, Inc. 2,114,605
11,252 Rohm and Haas Co. 626,399
10,565 Sigma-Aldrich Corp. 514,938
--------------
18,388,905
--------------

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9

Equity Index

Shares Value

COMMERCIAL BANKS -- 3.6%
42,859 BB&T Corporation $ 1,731,075
12,348 Comerica Inc. 633,205
15,097 Commerce Bancorp Inc. 585,462
43,463 Fifth Third Bancorp 1,472,526
10,016 First Horizon National Corp.(2) 267,027
29,394 Huntington Bancshares Inc. 499,110
31,066 KeyCorp 1,004,364
5,997 M&T Bank Corp. 620,390
20,448 Marshall & Ilsley Corp. 895,009
50,629 National City Corp. 1,270,282
27,255 PNC Financial Services Group 1,856,066
55,706 Regions Financial Corp. 1,642,213
28,197 SunTrust Banks, Inc. 2,133,667
25,809 Synovus Financial Corp. 723,942
137,415 U.S. Bancorp 4,470,110
151,170 Wachovia Corp. 7,581,176
263,953 Wells Fargo & Co. 9,402,005
8,651 Zions Bancorporation 594,064
--------------
37,381,693
--------------
COMMERCIAL SERVICES & SUPPLIES -- 0.5%
20,693 Allied Waste Industries Inc.(1) 263,836
7,373 Avery Dennison Corp. 420,408
10,849 Cintas Corp. 402,498
11,278 Equifax Inc. 429,917
10,619 Monster Worldwide Inc.(1) 361,683
17,373 Pitney Bowes, Inc. 789,082
17,410 R.R. Donnelley & Sons Company 636,510
12,967 Robert Half International Inc. 387,195
42,536 Waste Management, Inc. 1,605,308
--------------
5,296,437
--------------
COMMUNICATIONS EQUIPMENT -- 3.0%
36,195 Avaya Inc.(1) 613,867
6,813 Ciena Corp.(1)(2) 259,439
483,363 Cisco Systems Inc.(1) 16,004,148
124,261 Corning Inc. 3,063,034
16,649 JDS Uniphase Corp.(1) 249,069
40,568 Juniper Networks, Inc.(1) 1,485,194
185,656 Motorola, Inc. 3,440,206
135,426 QUALCOMM Inc. 5,723,103
35,553 Tellabs, Inc.(1) 338,465
--------------
31,176,525
--------------
COMPUTERS & PERIPHERALS -- 3.2%
68,904 Apple Inc.(1) 10,579,520
179,498 Dell Inc.(1) 4,954,145
165,862 EMC Corp.(1) 3,449,930
204,846 Hewlett-Packard Co. 10,199,282

Shares Value

7,503 Lexmark International, Inc. Cl A(1) $311,600
29,357 Network Appliance, Inc.(1) 789,997
11,601 QLogic Corp.(1) 156,033
18,063 SanDisk Corp.(1) 995,271
282,185 Sun Microsystems, Inc.(1) 1,583,058
--------------
33,018,836
--------------
CONSTRUCTION & ENGINEERING -- 0.1%
6,996 Fluor Corp. 1,007,284
--------------
CONSTRUCTION MATERIALS -- 0.1%
7,468 Vulcan Materials Co.(2) 665,772
--------------
CONSUMER FINANCE -- 1.0%
93,949 American Express Co. 5,577,752
32,653 Capital One Financial Corp. 2,169,139
41,602 Discover Financial Services(1) 865,322
32,506 SLM Corporation 1,614,573
--------------
10,226,786
--------------
CONTAINERS & PACKAGING -- 0.2%
8,214 Ball Corp. 441,503
8,333 Bemis Co., Inc. 242,574
10,631 Pactiv Corp.(1) 304,684
12,828 Sealed Air Corp. 327,884
8,558 Temple-Inland Inc. 450,407
--------------
1,767,052
--------------
DISTRIBUTORS -- 0.1%
13,409 Genuine Parts Company 670,450
--------------
DIVERSIFIED CONSUMER SERVICES -- 0.1%
11,061 Apollo Group, Inc. Cl A(1) 665,319
25,982 H&R Block, Inc. 550,299
--------------
1,215,618
--------------
DIVERSIFIED FINANCIAL SERVICES -- 5.3%
355,215 Bank of America Corp.(3) 17,856,658
15,131 CIT Group Inc. 608,266
392,949 Citigroup Inc. 18,338,931
4,252 CME Group Inc. 2,497,412
5,500 IntercontinentalExchange Inc.(1) 835,450
271,100 JPMorgan Chase & Co. 12,421,802
13,200 Leucadia National Corp. 636,504
27,117 McGraw-Hill Companies, Inc. (The) 1,380,526
17,607 Moody's Corp. 887,393
--------------
55,462,942
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 3.3%
487,252 AT&T Inc. 20,615,633
8,898 CenturyTel Inc. 411,266
27,829 Citizens Communications Company 398,511

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10

Equity Index

Shares Value

11,955 Embarq Corp. $664,698
122,788 Qwest Communications International Inc.(1) 1,124,738
229,437 Verizon Communications Inc. 10,159,470
37,620 Windstream Corp. 531,194
--------------
33,905,510
--------------
ELECTRIC UTILITIES -- 1.9%
13,034 Allegheny Energy, Inc.(1) 681,157
31,487 American Electric Power 1,450,921
99,545 Duke Energy Corp. 1,860,496
25,717 Edison International 1,426,008
15,574 Entergy Corp. 1,686,508
55,129 Exelon Corporation 4,154,522
24,130 FirstEnergy Corp. 1,528,394
32,104 FPL Group, Inc. 1,954,492
7,981 Pinnacle West Capital Corp. 315,329
30,488 PPL Corporation 1,411,594
20,154 Progress Energy Inc. 944,215
59,397 Southern Co.(2) 2,154,923
--------------
19,568,559
--------------
ELECTRICAL EQUIPMENT -- 0.5%
14,729 Cooper Industries, Ltd. Cl A 752,505
62,895 Emerson Electric Co. 3,347,271
12,494 Rockwell Automation Inc. 868,458
--------------
4,968,234
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS -- 0.3%
31,261 Agilent Technologies, Inc.(1) 1,152,906
14,418 Jabil Circuit, Inc. 329,307
11,426 Molex Inc. 307,702
72,282 Solectron Corp.(1) 281,900
5,959 Tektronix, Inc. 165,303
39,180 Tyco Electronics Ltd. 1,388,147
--------------
3,625,265
--------------
ENERGY EQUIPMENT & SERVICES -- 2.5%
25,277 Baker Hughes Inc. 2,284,282
23,201 BJ Services Co. 615,987
11,796 ENSCO International Inc. 661,756
70,753 Halliburton Co. 2,716,915
22,251 Nabors Industries Ltd.(1) 684,663
14,093 National Oilwell Varco, Inc.(1) 2,036,439
21,170 Noble Corp. 1,038,389
9,001 Rowan Companies, Inc. 329,257
94,741 Schlumberger Ltd. 9,947,804
15,831 Smith International, Inc. 1,130,333
22,787 Transocean Inc.(1) 2,576,070
26,642 Weatherford International Ltd.(1) 1,789,810
--------------
25,811,705
--------------

Shares Value

FOOD & STAPLES RETAILING -- 2.4%
34,741 Costco Wholesale Corp. $ 2,132,055
117,605 CVS/Caremark Corp. 4,660,686
55,967 Kroger Co. (The) 1,596,179
34,933 Safeway Inc. 1,156,632
16,420 SUPERVALU INC. 640,544
48,825 Sysco Corp. 1,737,682
190,677 Wal-Mart Stores, Inc. 8,323,050
79,036 Walgreen Co. 3,733,661
11,183 Whole Foods Market, Inc.(2) 547,520
--------------
24,528,009
--------------
FOOD PRODUCTS -- 1.5%
51,524 Archer-Daniels-Midland Co. 1,704,414
17,157 Campbell Soup Co. 634,809
39,378 ConAgra Foods, Inc. 1,028,947
10,351 Dean Foods Co. 264,779
27,371 General Mills, Inc. 1,587,792
25,639 H.J. Heinz Co. 1,184,522
13,494 Hershey Co. (The) 626,257
19,857 Kellogg Co. 1,111,992
125,583 Kraft Foods Inc. Cl A 4,333,869
10,352 McCormick & Company, Inc. 372,361
58,007 Sara Lee Corp. 968,137
20,507 Tyson Foods, Inc. Cl A 366,050
17,049 Wm. Wrigley Jr. Co. 1,095,057
--------------
15,278,986
--------------
GAS UTILITIES -- 0.1%
3,651 Nicor Inc.(2) 156,628
13,573 Questar Corp. 712,990
--------------
869,618
--------------
HEALTH CARE EQUIPMENT & SUPPLIES -- 1.8%
8,110 Bard (C.R.), Inc. 715,221
4,384 Bausch & Lomb Inc. 280,576
51,427 Baxter International Inc. 2,894,312
19,314 Becton, Dickinson & Co. 1,584,714
100,977 Boston Scientific Corp.(1) 1,408,629
39,181 Covidien Ltd.(1) 1,626,012
12,536 Hospira Inc.(1) 519,617
91,567 Medtronic, Inc. 5,165,293
26,723 St. Jude Medical, Inc.(1) 1,177,683
20,630 Stryker Corp. 1,418,519
10,255 Varian Medical Systems, Inc.(1) 429,582
18,653 Zimmer Holdings Inc.(1) 1,510,706
--------------
18,730,864
--------------
HEALTH CARE PROVIDERS & SERVICES -- 2.2%
40,754 Aetna Inc. 2,211,720
14,175 AmerisourceBergen Corp. 642,553
28,752 Cardinal Health, Inc. 1,797,863

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11

Equity Index

Shares Value

22,458 CIGNA Corp. $ 1,196,787
12,379 Coventry Health Care Inc.(1) 770,098
20,322 Express Scripts, Inc.(1) 1,134,374
13,221 Humana Inc.(1) 923,883
9,263 Laboratory Corp. of America Holdings(1) 724,644
5,831 Manor Care, Inc. 375,516
23,370 McKesson Corp. 1,373,922
21,542 Medco Health Solutions Inc.(1) 1,947,181
11,194 Patterson Companies, Inc.(1) 432,200
12,514 Quest Diagnostics Inc. 722,934
37,528 Tenet Healthcare Corp.(1) 126,094
105,235 UnitedHealth Group Inc. 5,096,531
47,981 WellPoint Inc.(1) 3,786,661
--------------
23,262,961
--------------
HEALTH CARE TECHNOLOGY(4)
15,510 IMS Health Inc. 475,226
--------------
HOTELS, RESTAURANTS & LEISURE -- 1.6%
35,799 Carnival Corporation 1,733,746
11,158 Darden Restaurants, Inc. 467,074
14,722 Harrah's Entertainment, Inc. 1,279,783
30,762 Hilton Hotels Corporation 1,430,125
26,649 International Game Technology 1,148,572
25,924 Marriott International, Inc. Cl A 1,126,916
94,372 McDonald's Corporation 5,140,443
58,508 Starbucks Corporation(1) 1,532,910
17,009 Starwood Hotels & Resorts Worldwide, Inc. 1,033,297
6,973 Wendy's International, Inc. 243,427
14,741 Wyndham Worldwide Corp. 482,915
41,349 Yum! Brands, Inc. 1,398,837
--------------
17,018,045
--------------
HOUSEHOLD DURABLES -- 0.5%
5,343 Black & Decker Corporation 445,072
9,609 Centex Corp. 255,311
21,985 D.R. Horton, Inc. 281,628
12,092 Fortune Brands, Inc. 985,376
5,142 Harman International Industries Inc. 444,886
6,063 KB Home(2) 151,939
14,271 Leggett & Platt, Inc. 273,432
11,047 Lennar Corp. 250,215
22,440 Newell Rubbermaid Inc. 646,720
17,092 Pulte Homes Inc. 232,622
4,588 Snap-on Incorporated 227,290
6,581 Stanley Works (The) 369,392
6,350 Whirlpool Corp. 565,785
--------------
5,129,668
--------------

Shares Value

HOUSEHOLD PRODUCTS -- 2.2%
10,911 Clorox Company $665,462
40,460 Colgate-Palmolive Co. 2,885,607
33,705 Kimberly-Clark Corp. 2,368,113
247,899 Procter & Gamble Co. (The) 17,437,216
--------------
23,356,398
--------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS -- 0.5%
52,817 AES Corp. (The)(1) 1,058,453
14,239 Constellation Energy Group Inc. 1,221,564
33,113 Dynegy Inc. Cl A(1) 305,964
38,648 TXU Corp. 2,646,228
--------------
5,232,209
--------------
INDUSTRIAL CONGLOMERATES -- 4.0%
56,856 3M Co. 5,320,584
813,107 General Electric Co. 33,775,789
19,888 Textron Inc. 1,237,232
39,181 Tyco International Ltd. 1,737,286
--------------
42,070,891
--------------
INSURANCE -- 4.6%
25,697 Ace, Ltd. 1,556,467
38,661 Aflac Inc. 2,205,223
46,478 Allstate Corp. 2,658,077
8,202 Ambac Financial Group, Inc. 515,988
203,763 American International Group, Inc. 13,784,568
23,225 AON Corp. 1,040,712
7,662 Assurant, Inc. 409,917
31,206 Chubb Corp. 1,673,890
13,513 Cincinnati Financial Corp. 585,248
33,661 Genworth Financial Inc. Cl A 1,034,403
25,082 Hartford Financial Services Group Inc. (The) 2,321,339
21,389 Lincoln National Corp. 1,411,032
35,267 Loews Corp. 1,705,159
42,992 Marsh & McLennan Companies, Inc. 1,096,296
10,025 MBIA Inc. 612,026
58,578 MetLife, Inc. 4,084,644
21,148 Principal Financial Group, Inc. 1,334,227
57,540 Progressive Corp. (The) 1,116,851
37,628 Prudential Financial, Inc. 3,671,740
8,396 Safeco Corp. 514,003
7,534 Torchmark Corp. 469,519
52,132 Travelers Companies, Inc. (The) 2,624,325
27,582 Unum Group 674,932
14,463 XL Capital Ltd. Cl A 1,145,470
--------------
48,246,056
--------------

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12

Equity Index

Shares Value

INTERNET & CATALOG RETAIL -- 0.3%
24,527 Amazon.com, Inc.(1) $ 2,284,690
15,180 IAC/InterActiveCorp(1) 450,391
--------------
2,735,081
--------------
INTERNET SOFTWARE & SERVICES -- 1.7%
13,270 Akamai Technologies, Inc.(1) 381,247
89,490 eBay Inc.(1) 3,491,900
18,450 Google Inc. Cl A(1) 10,466,131
19,324 VeriSign, Inc.(1) 651,992
104,724 Yahoo! Inc.(1) 2,810,792
--------------
17,802,062
--------------
IT SERVICES -- 2.1%
8,060 Affiliated Computer Services Inc. Cl A(1) 404,934
42,218 Automatic Data Processing, Inc. 1,939,073
11,368 Cognizant Technology Solutions Corp. Cl A(1) 906,825
13,638 Computer Sciences Corp.(1) 762,364
11,133 Convergys Corp.(1) 193,269
40,245 Electronic Data Systems Corp. 878,951
13,163 Fidelity National Information Services, Inc. 584,042
13,233 Fiserv, Inc.(1) 673,030
107,927 International Business Machines Corp. 12,713,801
26,852 Paychex, Inc. 1,100,932
28,006 Unisys Corp.(1) 185,400
61,073 Western Union Co. (The) 1,280,701
--------------
21,623,322
--------------
LEISURE EQUIPMENT & PRODUCTS -- 0.2%
7,232 Brunswick Corp. 165,324
22,747 Eastman Kodak Co.(2) 608,710
12,584 Hasbro, Inc. 350,842
31,149 Mattel, Inc. 730,755
--------------
1,855,631
--------------
LIFE SCIENCES TOOLS & SERVICES -- 0.3%
14,768 Applera Corporation -- Applied Biosystems Group 511,564
4,283 Millipore Corp.(1) 324,651
9,765 PerkinElmer, Inc. 285,236
33,352 Thermo Fisher Scientific Inc.(1) 1,925,077
8,118 Waters Corp.(1) 543,257
--------------
3,589,785
--------------
MACHINERY -- 1.8%
50,633 Caterpillar Inc. 3,971,145
8,191 Cummins Inc. 1,047,547
18,758 Danaher Corp. 1,551,474
17,805 Deere & Co. 2,642,618

Shares Value

16,148 Dover Corp. $822,741
11,589 Eaton Corp. 1,147,775
32,551 Illinois Tool Works Inc. 1,941,342
23,871 Ingersoll-Rand Company Ltd. Cl A 1,300,253
14,423 ITT Corporation 979,754
19,582 Paccar Inc. 1,669,366
9,863 Pall Corp. 383,671
9,120 Parker-Hannifin Corp. 1,019,890
8,096 Terex Corp.(1) 720,706
--------------
19,198,282
--------------
MEDIA -- 3.0%
54,347 CBS Corp. Cl B 1,711,931
39,241 Clear Channel Communications, Inc. 1,469,183
245,929 Comcast Corp. Cl A(1) 5,946,562
60,339 DIRECTV Group, Inc. (The)(1) 1,465,031
5,185 Dow Jones & Co., Inc. 309,545
6,733 EW Scripps Co. Cl A 282,786
18,483 Gannett Co., Inc. 807,707
37,025 Interpublic Group of Companies, Inc.(1) 384,320
3,053 Meredith Corp. 174,937
11,577 New York Times Co. (The) Cl A(2) 228,762
184,031 News Corp. Cl A 4,046,842
26,119 Omnicom Group Inc. 1,256,063
296,219 Time Warner Inc. 5,438,580
6,081 Tribune Co. 166,133
54,453 Viacom Inc. Cl B(1) 2,122,033
154,163 Walt Disney Co. (The) 5,301,665
--------------
31,112,080
--------------
METALS & MINING -- 1.0%
68,770 Alcoa Inc. 2,690,282
8,020 Allegheny Technologies Inc. 881,799
29,810 Freeport-McMoRan Copper & Gold, Inc. 3,126,772
38,299 Newmont Mining Corporation 1,713,114
23,277 Nucor Corp. 1,384,283
9,320 United States Steel Corp. 987,361
--------------
10,783,611
--------------
MULTI-UTILITIES -- 1.1%
16,297 Ameren Corp. 855,593
25,373 CenterPoint Energy, Inc. 406,729
17,809 CMS Energy Corp. 299,547
21,367 Consolidated Edison, Inc. 989,292
23,061 Dominion Resources Inc. 1,944,042
13,867 DTE Energy Company(2) 671,717
6,139 Integrys Energy Group Inc. 314,501
22,050 NiSource Inc. 422,037

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13

Equity Index

Shares Value

27,784 PG&E Corp. $ 1,328,075
20,040 Public Service Enterprise Group Inc. 1,763,320
20,828 Sempra Energy 1,210,523
16,660 TECO Energy, Inc. 273,724
32,301 XCEL Energy Inc. 695,764
--------------
11,174,864
--------------
MULTILINE RETAIL -- 1.0%
8,656 Big Lots, Inc.(1) 258,295
4,784 Dillard's Inc. Cl A(2) 104,435
11,533 Family Dollar Stores, Inc. 306,316
17,604 J.C. Penney Co., Inc. 1,115,565
25,261 Kohl's Corp.(1) 1,448,214
34,484 Macy's Inc. 1,114,523
15,660 Nordstrom, Inc. 734,297
6,026 Sears Holdings Corp.(1) 766,507
67,320 Target Corp. 4,279,533
--------------
10,127,685
--------------
OFFICE ELECTRONICS -- 0.1%
74,024 Xerox Corp.(1) 1,283,576
--------------
OIL, GAS & CONSUMABLE FUELS -- 9.5%
36,632 Anadarko Petroleum Corp. 1,968,970
26,148 Apache Corp. 2,354,889
32,347 Chesapeake Energy Corp. 1,140,555
169,353 Chevron Corp. 15,848,053
129,223 ConocoPhillips 11,341,903
14,651 Consol Energy Inc. 682,737
35,094 Devon Energy Corporation 2,919,821
55,344 El Paso Corp. 939,188
19,282 EOG Resources Inc. 1,394,667
442,020 Exxon Mobil Corp. 40,913,370
21,556 Hess Corp. 1,434,121
54,199 Marathon Oil Corp. 3,090,427
14,838 Murphy Oil Corp. 1,037,028
67,798 Occidental Petroleum Corp. 4,344,496
20,920 Peabody Energy Corp. 1,001,440
49,941 Spectra Energy Corp. 1,222,556
9,572 Sunoco, Inc. 677,506
10,900 Tesoro Corp. 501,618
43,377 Valero Energy Corp. 2,914,067
47,288 Williams Companies, Inc. (The) 1,610,629
30,249 XTO Energy Inc. 1,870,598
--------------
99,208,639
--------------
PAPER & FOREST PRODUCTS -- 0.3%
34,148 International Paper Company 1,224,889
14,530 MeadWestvaco Corp. 429,071
17,074 Weyerhaeuser Co. 1,234,450
--------------
2,888,410
--------------

Shares Value

PERSONAL PRODUCTS -- 0.2%
34,713 Avon Products, Inc. $ 1,302,779
9,576 Estee Lauder Companies, Inc. (The) Cl A 406,597
--------------
1,709,376
--------------
PHARMACEUTICALS -- 6.3%
121,754 Abbott Laboratories 6,528,449
24,245 Allergan, Inc. 1,563,075
8,892 Barr Pharmaceuticals Inc.(1) 506,044
155,471 Bristol-Myers Squibb Co. 4,480,674
77,994 Eli Lilly and Company 4,440,198
25,176 Forest Laboratories, Inc.(1) 938,813
232,091 Johnson & Johnson 15,248,380
19,602 King Pharmaceuticals, Inc.(1) 229,735
172,403 Merck & Co., Inc. 8,911,511
19,790 Mylan Laboratories Inc. 315,848
554,670 Pfizer Inc. 13,550,589
127,351 Schering-Plough Corp. 4,028,112
8,370 Watson Pharmaceuticals, Inc.(1) 271,188
106,246 Wyeth 4,733,259
--------------
65,745,875
--------------
REAL ESTATE INVESTMENT TRUSTS -- 1.3%
7,819 Apartment Investment and Management Co. Cl A 352,871
19,437 Archstone-Smith Trust 1,168,941
6,309 AvalonBay Communities Inc. 744,841
9,376 Boston Properties Inc. 974,166
9,912 Developers Diversified Realty Corp. 553,783
22,995 Equity Residential 974,068
19,321 General Growth Properties, Inc. 1,035,992
41,306 Host Hotels & Resorts Inc. 926,907
17,949 Kimco Realty Corporation 811,474
14,222 Plum Creek Timber Co. Inc. 636,577
20,247 ProLogis 1,343,388
9,677 Public Storage Inc. 761,096
17,676 Simon Property Group, Inc. 1,767,601
10,310 Vornado Realty Trust 1,127,399
--------------
13,179,104
--------------
REAL ESTATE MANAGEMENT & DEVELOPMENT(4)
15,086 CB Richard Ellis Group, Inc. Cl A(1) 419,994
--------------
ROAD & RAIL -- 0.7%
24,157 Burlington Northern Santa Fe Corp. 1,960,824
34,577 CSX Corporation 1,477,475
31,042 Norfolk Southern Corp. 1,611,390

------
14

Equity Index

Shares Value

4,996 Ryder System, Inc. $244,804
21,388 Union Pacific Corp. 2,418,127
--------------
7,712,620
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.8%
44,288 Advanced Micro Devices, Inc.(1)(2) 584,602
28,069 Altera Corp. 675,902
25,820 Analog Devices, Inc. 933,651
109,205 Applied Materials, Inc. 2,260,544
36,737 Broadcom Corp. Cl A(1) 1,338,696
461,738 Intel Corp. 11,940,544
15,119 KLA-Tencor Corp. 843,338
17,823 Linear Technology Corp. 623,627
56,578 LSI Logic Corp.(1) 419,809
17,756 MEMC Electronic Materials Inc.(1) 1,045,118
17,300 Microchip Technology Inc. 628,336
59,758 Micron Technology, Inc.(1) 663,314
19,349 National Semiconductor Corp. 524,745
10,063 Novellus Systems, Inc.(1) 274,317
43,003 NVIDIA Corp.(1) 1,558,429
15,074 Teradyne, Inc.(1) 208,021
113,271 Texas Instruments Inc. 4,144,586
23,967 Xilinx, Inc. 626,497
--------------
29,294,076
--------------
SOFTWARE -- 3.3%
46,416 Adobe Systems Inc.(1) 2,026,523
18,303 Autodesk, Inc.(1) 914,601
16,010 BMC Software Inc.(1) 499,992
30,897 CA, Inc. 794,671
14,529 Citrix Systems, Inc.(1) 585,809
24,305 Compuware Corp.(1) 194,926
24,448 Electronic Arts Inc.(1) 1,368,844
27,064 Intuit Inc.(1) 820,039
640,474 Microsoft Corporation 18,868,363
27,691 Novell, Inc.(1) 211,559
312,841 Oracle Corp.(1) 6,773,008
71,202 Symantec Corp.(1) 1,379,895
--------------
34,438,230
--------------
SPECIALTY RETAIL -- 1.6%
6,947 Abercrombie & Fitch Co. 560,623
12,088 AutoNation, Inc.(1) 214,199
3,869 AutoZone, Inc.(1) 449,346
21,638 Bed Bath & Beyond Inc.(1) 738,289

Shares Value

31,974 Best Buy Co., Inc. $ 1,471,443
11,370 Circuit City Stores Inc.(2) 89,937
39,358 Gap, Inc. (The) 725,762
133,133 Home Depot, Inc. (The) 4,318,834
25,336 Limited Brands, Inc. 579,941
118,910 Lowe's Companies, Inc. 3,331,857
22,246 Office Depot, Inc.(1) 458,713
6,181 OfficeMax Inc. 211,823
10,817 RadioShack Corp.(2) 223,479
8,608 Sherwin-Williams Co. 565,632
56,551 Staples, Inc. 1,215,281
11,002 Tiffany & Co. 575,955
35,301 TJX Companies, Inc. (The) 1,026,200
--------------
16,757,314
--------------
TEXTILES, APPAREL & LUXURY GOODS -- 0.4%
29,364 Coach Inc.(1) 1,388,036
7,418 Jones Apparel Group, Inc. 156,742
8,452 Liz Claiborne, Inc. 290,157
30,608 NIKE, Inc. Cl B 1,795,466
4,731 Polo Ralph Lauren Corp. 367,835
7,169 VF Corp. 578,897
--------------
4,577,133
--------------
THRIFTS & MORTGAGE FINANCE -- 1.2%
45,748 Countrywide Financial Corp. 869,669
76,902 Fannie Mae 4,676,412
52,334 Freddie Mac 3,088,229
38,356 Hudson City Bancorp, Inc. 589,915
6,683 MGIC Investment Corp.(2) 215,928
29,054 Sovereign Bancorp Inc. 495,080
70,240 Washington Mutual, Inc. 2,480,174
--------------
12,415,407
--------------
TOBACCO -- 1.3%
167,852 Altria Group Inc. 11,670,749
13,467 Reynolds American Inc.(2) 856,367
12,888 UST Inc.(2) 639,245
--------------
13,166,361
--------------
TRADING COMPANIES & DISTRIBUTORS -- 0.1%
5,715 Grainger (W.W.), Inc. 521,151
--------------
WIRELESS TELECOMMUNICATION SERVICES -- 0.6%
27,301 ALLTEL Corp. 1,902,334
228,652 Sprint Nextel Corp. 4,344,388
--------------
6,246,722
--------------
TOTAL COMMON STOCKS
(Cost $698,745,903) 1,069,443,803
--------------

------
15

Equity Index

Principal Amount Value

Short-Term Investments Segregated for Futures Contracts(3)(5) -- 0.9%

$8,500,000 FHLB Discount Notes, 4.00%, 10/1/07 $ 8,500,000
1,080,000 U.S. Treasury Bills, 4.69%, 1/17/08 1,067,925
--------------
TOTAL SHORT-TERM INVESTMENTS SEGREGATED
FOR FUTURES CONTRACTS
(Cost $9,564,802) 9,567,925
--------------

Temporary Cash Investments -- Securities Lending Collateral(6) -- 0.6%

Value
TOTAL INVESTMENT SECURITIES -- 104.2%
(Cost $714,729,045) $1,085,430,068
--------------
OTHER ASSETS AND LIABILITIES -- (4.2)% (43,288,087)
--------------
TOTAL NET ASSETS -- 100.0% $1,042,141,981
==============

Futures Contracts
Expiration Underlying Face Unrealized Gain
Contracts Purchased Date Amount at Value (Loss)

142 S&P 500 E-Mini
Futures December 2007 $10,934,000 $238,041
=========== ===========

Notes to Schedule of Investments

FHLB = Federal Home Loan Bank

(1) Non-income producing.

(2) Security, or a portion thereof, was on loan as of September 30, 2007.

(3) Security, or a portion thereof, has been segregated on the fund's records,
at the custodian bank, or with the broker as initial margin on futures
contracts.

(4) Industry is less than 0.05% of total net assets.

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

(6) Investments represent purchases made by the lending agent with cash
collateral received through securities lending transactions.

See Notes to Financial Statements.

------
16

STATEMENT OF ASSETS AND LIABILITIES

SEPTEMBER 30, 2007 (UNAUDITED)

ASSETS

Investment securities, at value (cost of $708,310,705) --
including $6,252,999 of securities on loan $1,079,011,728

Investments made with cash collateral received for securities on
loan, at value (cost of $6,418,340) 6,418,340
--------------
Total investment securities, at value (cost of $714,729,045) 1,085,430,068

Cash 494,319

Receivable for investments sold 1,058,763

Dividends and interest receivable 1,215,006
--------------
1,088,198,156
--------------

LIABILITIES

Payable for collateral received for securities on loan 6,418,340

Payable for capital shares redeemed 38,769,943

Payable for investments purchased 541,583

Payable for variation margin on futures contracts 32,663

Accrued management fees 293,646
--------------
46,056,175
--------------

NET ASSETS $1,042,141,981
==============

NET ASSETS CONSIST OF:

Capital (par value and paid-in surplus) $ 778,891,855

Undistributed net investment income 699,968

Accumulated net realized loss on investment transactions (108,388,906)

Net unrealized appreciation on investments 370,939,064
--------------
$1,042,141,981
==============

INVESTOR CLASS, $0.01 PAR VALUE

Net assets $243,597,294

Shares outstanding 40,048,116

Net asset value per share $6.08

INSTITUTIONAL CLASS, $0.01 PAR VALUE

Net assets $798,544,687

Shares outstanding 131,212,569

Net asset value per share $6.09

See Notes to Financial Statements.

------
17

STATEMENT OF OPERATIONS

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

INVESTMENT INCOME (LOSS)

INCOME:

Dividends $ 9,965,270

Interest 439,490

Securities lending 27,898
-----------
10,432,658
-----------

EXPENSES:

Management fees 1,798,502

Directors' fees and expenses 11,467

Other expenses 12,681
-----------
1,822,650
-----------

NET INVESTMENT INCOME (LOSS) 8,610,008
-----------

REALIZED AND UNREALIZED GAIN (LOSS)

NET REALIZED GAIN (LOSS) ON:

Investment transactions 2,244,653

Futures transactions 397,767
-----------
2,642,420
-----------

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:

Investments 73,841,313

Futures 81,430
-----------
73,922,743
-----------

NET REALIZED AND UNREALIZED GAIN (LOSS) 76,565,163
-----------

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $85,175,171
===========

See Notes to Financial Statements.

------
18

STATEMENT OF CHANGES IN NET ASSETS

SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED) AND YEAR ENDED MARCH 31, 2007

Increase (Decrease) in Net Assets Sept. 30, 2007 March 31, 2007

OPERATIONS

Net investment income (loss) $ 8,610,008 $ 16,518,662

Net realized gain (loss) 2,642,420 (1,894,848)

Change in net unrealized appreciation
(depreciation) 73,922,743 95,849,197
-------------- --------------
Net increase (decrease) in net assets resulting
from operations 85,175,171 110,473,011
-------------- --------------

DISTRIBUTIONS TO SHAREHOLDERS

From net investment income:

Investor Class (1,731,587) (3,153,574)

Institutional Class (6,858,658) (12,820,111)
-------------- --------------
Decrease in net assets from distributions (8,590,245) (15,973,685)
-------------- --------------

CAPITAL SHARE TRANSACTIONS

Net increase (decrease) in net assets from
capital share transactions (80,894,528) 136,393,751
-------------- --------------

NET INCREASE (DECREASE) IN NET ASSETS (4,309,602) 230,893,077

NET ASSETS

Beginning of period 1,046,451,583 815,558,506
-------------- --------------
End of period $1,042,141,981 $1,046,451,583
============== ==============

Undistributed net investment income $699,968 $680,205
============== ==============

See Notes to Financial Statements.

------
19

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2007 (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

SECURITY VALUATIONS -- Securities traded primarily on a principal securities
exchange are valued at the last reported sales price, or at the mean of the
latest bid and asked prices where no last sales price is available. Depending
on local convention or regulation, securities traded over-the-counter are
valued at the mean of the latest bid and asked prices, the last sales price,
or the official close price. Debt securities not traded on a principal
securities exchange are valued through a commercial pricing service or at the
mean of the most recent bid and asked prices. Discount notes may be valued
through a commercial pricing service or at amortized cost, which approximates
fair value. Securities traded on foreign securities exchanges and
over-the-counter markets are normally completed before the close of business
on days that the New York Stock Exchange (the Exchange) is open and may also
take place on days when the Exchange is not open. If an event occurs after the
value of a security was established but before the net asset value per share
was determined that was likely to materially change the net asset value, that
security would be valued as determined in accordance with procedures adopted
by the Board of Directors. If the fund determines that the market price of a
portfolio security is not readily available, or that the valuation methods
mentioned above do not reflect the security's fair value, such security is
valued as determined by, or in accordance with procedures adopted by, the
Board of Directors or its designee if such determination would materially
impact a fund's net asset value. Certain other circumstances may cause the
fund to use alternative procedures to value a security such as: a security has
been declared in default; trading in a security has been halted during the
trading day; or there is a foreign market holiday and no trading will
commence.

SECURITIES ON LOAN -- The fund may lend portfolio securities through its
lending agent to certain approved borrowers in order to earn additional
income. The fund continues to recognize any gain or loss in the market price
of the securities loaned and records any interest earned or dividends
declared.

INVESTMENT INCOME -- Dividend income less foreign taxes withheld, if any, is
recorded as of the ex-dividend date. Distributions received on securities that
represent a return of capital or capital gain are recorded as a reduction of
cost of investments and/or as a realized gain. The fund estimates the
components of distributions received that may be considered nontaxable
distributions or capital gain distributions for income tax purposes. Interest
income is recorded on the accrual basis and includes accretion of discounts
and amortization of premiums.

------
20

FUTURES CONTRACTS -- The fund may enter into futures contracts in order to
manage the fund's exposure to changes in market conditions. One of the risks
of entering into futures contracts is the possibility that the change in value
of the contract may not correlate with the changes in value of the underlying
securities. Upon entering into a futures contract, the fund is required to
deposit either cash or securities in an amount equal to a certain percentage
of the contract value (initial margin). Subsequent payments (variation margin)
are made or received daily, in cash, by the fund. The variation margin is
equal to the daily change in the contract value and is recorded as unrealized
gains and losses. The fund recognizes a realized gain or loss when the
contract is closed or expires. Net realized and unrealized gains or losses
occurring during the holding period of futures contracts are a component of
realized gain (loss) on futures transactions and unrealized appreciation
(depreciation) on futures, respectively.

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

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

INCOME TAX STATUS -- It is the fund's policy to distribute substantially all
net investment income and net realized gains to shareholders and to otherwise
qualify as a regulated investment company under provisions of the Internal
Revenue Code. The fund is no longer subject to examination by tax authorities
for years prior to 2004. At this time, management has not identified any
uncertain tax positions that would materially impact the financial statements.
Accordingly, no provision has been made for federal or state income taxes.
Interest and penalties associated with any federal or state income tax
obligations, if any, are recorded as interest expense.

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

------
21

2. FEES AND TRANSACTIONS WITH RELATED PARTIES

MANAGEMENT FEES -- The corporation has entered into a Management Agreement
with ACIM, under which ACIM provides the fund with investment advisory and
management services in exchange for a single, unified management fee (the fee)
per class. The Agreement provides that all expenses of the fund, except
brokerage commissions, taxes, interest, fees and expenses of those directors
who are not considered "interested persons" as defined in the 1940 Act
(including counsel fees) and extraordinary expenses, will be paid by ACIM. The
fee is computed and accrued daily based on the daily net assets of the
specific class of shares of the fund and paid monthly in arrears. For funds
with a stepped fee schedule, the rate of the fee is determined by applying a
fee rate calculation formula. This formula takes into account all of the
investment advisor's assets under management in the fund's investment strategy
(strategy assets) to calculate the appropriate fee rate for the fund. The
strategy assets include the fund's assets and the assets of other clients of
the investment advisor that are not in the American Century family of funds,
but that have the same investment team and investment strategy. The annual
management fee schedule for the fund ranges from 0.43% to 0.49% for the
Investor Class. The Institutional Class is 0.20% less at each point within the
range. The effective annual management fee for each class of the fund for the
six months ended September 30, 2007 was 0.49% and 0.29% for the Investor Class
and Institutional Class, respectively.

On July 27, 2007, shareholders of the fund approved a Subadvisory Agreement
between Northern Trust Investments, N.A. (NTI) and ACIM. The Subadvisory
Agreement was approved by the Board of Directors on November 29, 2006.
Effective August 1, 2007, ACIM entered into a Subadvisory Agreement with NTI
on behalf of the fund. Prior to August 1, 2007, ACIM had a Subadvisory
Agreement with Barclays Global Fund Advisors (BGFA) (collectively with NTI,
the subadvisors) on behalf of the fund. The subadvisors make investment
decisions for the fund in accordance with the fund's investment objectives,
policies and restrictions under the supervision of ACIM and the Board of
Directors. ACIM pays all costs associated with retaining the subadvisors of
the fund.

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

The fund is eligible to invest in a money market fund for temporary purposes,
which is managed by J.P. Morgan Investment Management, Inc. (JPMIM). JPMIM is
a wholly owned subsidiary of JPMorgan Chase & Co. (JPM). JPM is an equity
investor in ACC. The fund has a bank line of credit agreement and securities
lending agreement with JPMorgan Chase Bank (JPMCB). JPMCB is a custodian of
the fund and a wholly owned subsidiary of JPM.

3. INVESTMENT TRANSACTIONS

Purchases and sales of investment securities, excluding short-term
investments, for the six months ended September 30, 2007, were $68,676,930 and
$104,338,717, respectively.

------
22

4. CAPITAL SHARE TRANSACTIONS

Transactions in shares of the fund were as follows:

Six months ended September Year ended
30, 2007 March 31, 2007
Shares Amount Shares Amount

INVESTOR
CLASS/SHARES
AUTHORIZED 150,000,000 100,000,000
============ ============
Sold 3,635,053 $ 21,595,072 8,653,995 $ 46,849,637

Issued in
connection with
acquisition (Note 8) -- -- 33,257,723 171,655,240

Issued in
reinvestment of
distributions 257,429 1,518,563 511,586 2,737,555

Redeemed (4,974,060) (29,535,565) (30,924,150) (162,716,881)
------------ ------------- ------------ -------------
(1,081,578) (6,421,930) 11,499,154 58,525,551
------------ ------------- ------------ -------------

INSTITUTIONAL
CLASS/SHARES
AUTHORIZED 500,000,000 400,000,000
============ ============
Sold 21,359,105 127,964,619 44,066,384 233,940,765

Issued in
reinvestment of
distributions 1,161,832 6,858,658 2,397,106 12,820,111

Redeemed (34,917,664) (209,295,875) (31,245,332) (168,892,676)
------------ ------------- ------------ -------------
(12,396,727) (74,472,598) 15,218,158 77,868,200
------------ ------------- ------------ -------------
Net increase
(decrease) (13,478,305) $(80,894,528) 26,717,312 $ 136,393,751
============ ============= ============ =============

5. SECURITIES LENDING

As of September 30, 2007, securities in the fund valued at $6,252,999, were on
loan through the lending agent, JPMCB, to certain approved borrowers. JPMCB
receives and maintains collateral in the form of cash and/or acceptable
securities as approved by ACIM. Cash collateral is invested in authorized
investments by the lending agent in a pooled account. The value of cash
collateral received at period end is disclosed in the Statement of Assets and
Liabilities and investments made with the cash by the lending agent are listed
in the Schedule of Investments. Any deficiencies or excess of collateral must
be delivered or transferred by the member firms no later than the close of
business on the next business day. The total value of all collateral received,
at this date, was $6,418,340. The fund's risks in securities lending are that
the borrower may not provide additional collateral when required or return the
securities when due. If the borrower defaults, receipt of the collateral by
the fund may be delayed or limited.

6. BANK LINE OF CREDIT

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

7. FEDERAL TAX INFORMATION

As of September 30, 2007, the components of investments for federal income tax
purposes were as follows:

Federal tax cost of investments $754,586,380
============
Gross tax appreciation of investments $363,253,185

Gross tax depreciation of investments (32,409,497)
------------

Net tax appreciation (depreciation) of investments $330,843,688
============

------
23

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

Following are the capital loss carryovers and capital loss deferral amounts as
of March 31, 2007:

Accumulated capital losses $(80,019,388)
Capital loss deferral $(1,218,787)

The accumulated capital losses listed above represent net capital loss
carryovers that may be used to offset future realized capital gains for
federal income tax purposes. The capital loss carryovers expire as follows:

2008 2009 2010 2011 2012 2013 2014
$(2,917,398) $(10,639,477) $(49,081,742) $(1,957,751) $(1,992,016) $(5,270,954) $(8,160,050)

The capital loss deferral listed above represents net capital losses incurred
in the five-month period ended March 31, 2007. The fund has elected to treat
such losses as having been incurred in the following fiscal year for federal
income tax purposes.

8. REORGANIZATION PLAN

On December 14, 2005, the Board of Directors of Mason Street Index 500 Fund
(Index 500), one fund in a series issued by Mason Street Funds, Inc., approved
a plan of reorganization (the reorganization) pursuant to which Equity Index
acquired all of the assets of Index 500 in exchange for shares of equal value
of Equity Index and the assumption by Equity Index of all liabilities of Index
500. The financial statements and performance history of Equity Index will be
carried over in the post-reorganization. The reorganization was approved by
shareholders on March 15, 2006. The reorganization was effective at the close
of business on March 31, 2006.

The acquisition was accomplished by a tax-free exchange of shares. On April 3,
2006, in connection with the reorganization, Index 500 exchanged its shares
for shares of Equity Index as follows:

Original Shares New Shares
Fund/Class Exchanged Fund/Class Received
Index 500 Fund - A Equity Index - Investor
Class 9,733,344 Class 28,917,087
Index 500 Fund - B Equity Index - Investor
Class 1,474,502 Class 4,340,636

The net assets of Index 500 and Equity Index immediately before the
acquisition were $171,655,240 and $815,558,506, respectively. Index 500's
unrealized appreciation of $33,002,713 was combined with that of Equity Index.
Immediately after the acquisition, the combined net assets were $987,213,746.

9. RECENTLY ISSUED ACCOUNTING STANDARDS

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

------
24

FINANCIAL HIGHLIGHTS
Equity Index

Investor Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
2007(1) 2007 2006 2005 2004 2003
PER-SHARE DATA

Net Asset Value,
Beginning of
Period $5.66 $5.16 $4.70 $4.50 $3.39 $4.58
------ ------ ------ ------ ------ ------
Income From
Investment
Operations

Net
Investment
Income
(Loss)(2) 0.04 0.08 0.07 0.07 0.05 0.05

Net Realized
and
Unrealized
Gain (Loss) 0.42 0.50 0.46 0.20 1.11 (1.19)
------ ------ ------ ------ ------ ------
Total From
Investment
Operations 0.46 0.58 0.53 0.27 1.16 (1.14)
------ ------ ------ ------ ------ ------
Distributions

From Net
Investment
Income (0.04) (0.08) (0.07) (0.07) (0.05) (0.05)
------ ------ ------ ------ ------ ------
Net Asset Value,
End of Period $6.08 $5.66 $5.16 $4.70 $4.50 $3.39
====== ====== ====== ====== ====== ======

TOTAL RETURN(3) 8.21% 11.28% 11.36% 6.04% 34.27% (25.02)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net
Assets 0.49%(4) 0.49% 0.49% 0.49% 0.49% 0.49%

Ratio of Net
Investment
Income (Loss) to
Average Net
Assets 1.45%(4) 1.49% 1.43% 1.59% 1.23% 1.24%

Portfolio
Turnover Rate 6% 4% 17% 4% 16% 21%

Net Assets, End
of Period (in
thousands) $243,597 $232,880 $152,799 $150,454 $142,324 $90,093

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

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

(4) Annualized.

See Notes to Financial Statements.

------
25

Equity Index

Institutional Class
For a Share Outstanding Throughout the Years Ended March 31 (except as noted)
2007(1) 2007 2006 2005 2004 2003
PER-SHARE DATA

Net Asset Value,
Beginning of
Period $5.67 $5.16 $4.71 $4.50 $3.39 $4.58
------ ------ ------ ------ ------ ------
Income From
Investment
Operations

Net
Investment
Income
(Loss)(2) 0.05 0.09 0.08 0.08 0.06 0.05

Net Realized
and
Unrealized
Gain (Loss) 0.42 0.51 0.45 0.21 1.11 (1.19)
------ ------ ------ ------ ------ ------
Total From
Investment
Operations 0.47 0.60 0.53 0.29 1.17 (1.14)
------ ------ ------ ------ ------ ------
Distributions

From Net
Investment
Income (0.05) (0.09) (0.08) (0.08) (0.06) (0.05)
------ ------ ------ ------ ------ ------
Net Asset Value,
End of Period $6.09 $5.67 $5.16 $4.71 $4.50 $3.39
====== ====== ====== ====== ====== ======

TOTAL RETURN(3) 8.50% 11.50% 11.35% 6.47% 34.53% (24.87)%

RATIOS/SUPPLEMENTAL DATA

Ratio of
Operating
Expenses to
Average Net
Assets 0.29%(4) 0.29% 0.29% 0.29% 0.29% 0.29%

Ratio of Net
Investment
Income (Loss) to
Average Net
Assets 1.65%(4) 1.69% 1.63% 1.79% 1.43% 1.44%

Portfolio
Turnover Rate 6% 4% 17% 4% 16% 21%

Net Assets, End
of Period (in
thousands) $798,545 $813,571 $662,759 $907,886 $842,269 $350,815