NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
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 and Benham Management Corporation, 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 policy of the Fund to distribute all taxable income and capital gains to
shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal
Revenue Code. Accordingly, no provision has been made for federal income taxes.
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 are declared and paid annually.
The 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 are due to differences in
the recognition of income and expense items for financial statement and tax purposes.
SUPPLEMENTARY INFORMATION--Certain officers and directors of the Corporation are also officers
and/or directors, and, as a group, controlling stockholders of American Century Companies, Inc., the parent of
the Corporation's investment manager, ACIM, the Corporation's distributor, American Century Investment
Services, Inc., and the Corporation's transfer agent, American Century Services Corporation.
USE OF ESTIMATES--The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect t