Statement of Additional Information Supplement February 28, 2000*
AXP Bond Fund S-6495-20 P (10/99)
AXP Extra Income Fund S-6370-20 P (7/99)
AXP Federal Income Fund S-6042-20 R (7/99)
AXP Global Bond Fund S-6309-20 R (12/99)
AXP High Yield Tax-Exempt Fund S-6430-20 T (1/00)
AXP Insured Tax-Exempt Fund S-6327-20 T (8/99)
AXP Intermediate Tax-Exempt Fund S-6355-20 E (1/00)
AXP Massachusetts Tax-Exempt Fund S-6328-20 R (8/99)
AXP Michigan Tax-Exempt Fund S-6328-20 R (8/99)
AXP Minnesota Tax-Exempt Fund S-6328-20 R (8/99)
AXP New York Tax-Exempt Fund S-6328-20 R (8/99)
AXP Ohio Tax-Exempt Fund S-6328-20 R (8/99)
AXP Selective Fund S-6376-20 N (7/99)
AXP Tax-Exempt Bond Fund S-6310-20 T (1/00)
Effective March 20, 2000, the "Sales Charge" information is revised as follows:
Class A - Calculation of the Sales Charge
Sales charges are determined as follows:
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Sales charge as a percentage of:
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Amount of Investment Public Net
Offering Price Amount Invested
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Up to $50,000 4.75%
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$50,000-$99,999 4.50
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$100,000-$249,999 3.75
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$250,000-$499,999 2.50
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$500,000-$999,999 2.00**
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$1,000,000 or more 0.00
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**The sales charge will be waived until Dec. 31, 2000.
All other references to the sales charge on Class A shares are revised to
reflect a 4.75% maximum sales charge.
The section titled "Class A - Letter of Intent (LOI)" has been reflect as
follows:
If you intend to invest a large amount over a period of time, you can reduce the
sales charge in Class A by filing a LOI. The agreement can start at any time and
will remain in effect for 13 months. The LOI start date can be backdated 90 days
but cannot be backdated prior to March 20, 2000. Your investments will be
charged the charges that apply to the amount you have committed to invest. Five
percent of the commitment amount will be placed in escrow. If your commitment
amount is reached within the 13-month period, the shares will be released from
escrow. If you do not invest the commitment amount by the end of the 13 months,
the remaining unpaid sales charge will be redeemed from the escrowed shares and
the remaining balance released from escrow. The commitment amount does not
include purchases in any class of American Express funds, other than Class A;
purchases in American Express funds held within a product; and purchases of AXP
Cash Management Fund and AXP Tax-Free Money Fund unless they are subsequently
exchanged to Class A of an American Express mutual fund within the 13 month
period. A LOI is not an option (absolute right) to buy shares.
S-6317 A (2/00)
*Destroy next update
