Plan under Section 18f-3(d)
March 9, 2000
Filed pursuant to Item 23(o) of Form N-1A
Separate Arrangements
Each class of shares will represent interests in the same portfolio of
investments of the Fund and be identical except those differences that relate to
(a) the impact of the disproportionate payments made under the Rule 12b-1 plan;
(b) the impact of the disproportionate payments made because of service fees;
(c) the differences in class expenses including transfer agent fees and any
other expense determined by the board to be a class expense; and (d) the
difference in voting rights on the 12b-1 plan, exchange privileges and class
designations. The current classes of shares are as follows:
Class A shares - 4.75% (fixed income) or 5.75% (equity) initial sales
charge waived or reduced for certain purchases.
Class B shares - contingent deferred sales charge ranging from 5% down
to 0% after six years.
Class C shares - contingent deferred sales charge of 1% on redemptions
of shares held for less than one year.
Class Y shares - no sales charge.
Expense Allocation Procedures
American Express Financial Corporation, as the Fund's administrator, on a daily
basis shall allocate the income, expenses, and realized and unrealized gains and
losses of the Fund on the basis of the relative percentage of net assets of each
class of shares, except class specific expenses for service fees, 12b-1
distribution fees, and transfer agent fees which shall be paid directly by each
class as follows:
Service fee:
Class Y: 10 basis points
12b-1 fee:
Class A: 25 basis points
Class B: 100 basis points
Class C: 100 basis points
Transfer agent fee:
Class A: an additional $2 for each shareholder account
Class B: an additional $3 for each shareholder account
Class C: an additional $2.50 for each shareholder account
Should an expense of a class be waived or reimbursed, American Express Financial
Corporation first will determine that the waiver or reimbursement will not
result in another class subsidizing the class, is fair and equitable to all
classes and does not operate to the detriment of another class and then shall
monitor the implementation and operation to assure the waiver or reimbursement
operates consistent with the determination. The board shall monitor the actions
of American Express Financial Corporation.
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Exchange Privileges
Shares of a class may be exchanged for shares of the same class of another fund
that is part of the American Express Funds.
Conversion Privileges
Class B shares including a proportionate amount of shares acquired through
reinvestment of distributions shall convert in the ninth year of ownership into
Class A shares at relative net asset values without the imposition of any fee.
