AXP(SM)
Growth Fund
1999 ANNUAL REPORT
(PROSPECTUS ENCLOSED)
(icon of) ruler
The goal of AXP Growth Fund is to provide shareholders with long-term capital
growth. The Fund primarily invests in common stocks and securities convertible
into common stocks that appear to offer growth opportunities.
(This annual report includes a prospectus that describes in detail the Fund's
objective, investment strategy, risks, sales charges, fees and other matters of
interest. Please read the prospectus carefully before you invest or send money.)
Distributed by American Express Financial Advisors Inc.
AMERICAN EXPRESS Financial Advisors
<PAGE>
Going for Growth
In the long run, a company's stock price usually reflects its business fortunes.
Therefore, if a company thrives, its stock tends to follow suit. That's why many
long-term investors, including AXPGrowth Fund, focus on growth stocks -- those
of companies that enjoy rising sales and profits. While there will be
interruptions along the way, patient investors look forward to sharing in that
same prosperity.
AXP Growth Fund (This annual report is not part of the prospectus.)
<PAGE>
Table of Contents
1999 ANNUAL REPORT
The purpose of this annual report is to tell investors how the Fund performed.
From the Chairman 4
From the Portfolio Manager 4
Fund Facts 6
The 10 Largest Holdings 7
Making the Most of the Fund 8
The Fund's Long-term Performance 9
Independent Auditors' Report (Fund) 11
Financial Statements(Fund) 12
Notes to Financial Statements (Fund) 15
Independent Auditors' Report
(Portfolio) 20
Financial Statements(Portfolio) 21
Notes to Financial Statements
(Portfolio) 24
Investments in Securities 28
Federal Income Tax Information 34
1999 PROSPECTUS
The prospectus, which is bound into the middle of this annual report, describes
the Fund in detail.
The Fund 3p
Goal 3p
Investment Strategy 3p
Risks 4p
Past Performance 5p
Fees and Expenses 7p
Management 8p
Buying and Selling Shares 8p
Valuing Fund Shares 8p
Investment Options 9p
Purchasing Shares 10p
Sales Charges 13p
Exchanging/Selling Shares 17p
Distributions and Taxes 22p
Personalized Shareholder
Information 23p
Master/Feeder Structure 24p
About the Company 25p
Quick Telephone Reference 27p
Financial Highlights 28p
(This annual report is not part of the prospectus.) Annual Report - 1999
<PAGE>
(picture of) Arne H. Carlson
Arne H. Carlson
Chairman of the board
From the Chairman
American Express(R) Funds held shareholder meetings in June 1999. Shareholders
approved all of the proposals advanced by management. Among the proposals were:
o The election of Board members and the selection of KPMG LLP as independent
auditors.
o Change in the Fund name from "IDS" to "AXP."
o A new shareholder service and distribution plan.
o Changes with respect to fundamental investment policies.
No other business was presented at the meeting, which was concluded by a report
to shareholders from the Investment Department of American Express Financial
Corporation.
Thanks to all of you for your effort in reviewing the proxy material and voting
your proxies.
Arne H. Carlson
(picture of) Mitzi Malevich
Mitzi Malevich
Portfolio manager
From the Portfolio Manager
Despite a severe setback at the outset of the period, AXP Growth Fund enjoyed a
very productive fiscal year. For the 12 months -- August 1998 through July 1999
- -- the total return from the Fund's Class A shares was 20.49%. (A portion of the
return came in the form of a capital gain, which was paid to shareholders in
December 1998 and reduced the Fund's net asset value by a like amount at that
time.)
As the period began, the fallout from crumbling economies in Asia, Russia and
Latin America was taking a toll on U.S. stocks. The prevailing view was that
American companies' profits would suffer because of reduced business overseas,
and that technology-related companies -- a core area of investment for the Fund
- -- were especially vulnerable. The result was heavy stock-selling that, in
August alone, drove the Fund's value down by nearly 20%.
But, in another display of the remarkable resilience it has shown in recent
years, the market eventually righted itself and began a tentative advance. Soon,
buoyed by three reductions in short-term interest rates by the Federal Reserve
Board last fall, the recovery turned into a roaring rally that lasted until
spring. From that point, a steady rise in long-term interest rates kept stocks
off balance much of the time.
TECH LEADS THE WAY
Leading the list of top contributors for the period as a whole were
technology/telecommunications stocks, easily the largest investment exposure for
the Fund. Prominent performers included Microsoft, Cisco Systems, MCI Worldcom,
EMC and Tellabs. Early in the period, I increased the technology exposure by
adding to several holdings that had experienced price declines. That additional
buying, along with subsequent substantial price run-ups in a number of stocks,
pushed the technology/telecommunications exposure to more than 50% of total Fund
assets at times. Most of the rest of the portfolio consisted of health care,
financial services, retailing and utilities stocks.
Also working in the Fund's favor was the Fund's fundamental focus on
large-capitalization stocks, which most often led the market's advances during
the 12 months. Late in the period, these "large-caps" sometimes gave way to
small and mid-cap issues as investors began to shy away from the lofty prices
carried by many large-caps.
As the new fiscal year begins, I expect the stock market to remain quite
volatile as investors try to sort out several factors, the most important being
the strength of corporate earnings, the future rate of inflation and, therefore,
the direction of interest rates, and the potential impact of the Y2K computer
bug on the economy. My view is that the good news ultimately will outweigh the
bad, and that investments in robust companies that participate in fast-growing
areas of the economy will prove rewarding.
Mitzi Malevich
(This annual report is not part of the prospectus.) Annual Report - 1999
<PAGE>
Fund Facts
Class A -- 12-month performance
(All figures per share)
Net asset value (NAV)
July 31, 1999 $42.14
July 31, 1998 $36.58
Increase $ 5.56
Distributions -- Aug. 1, 1998 - July 31, 1999
From income $ --
From capital gains $ 1.70
Total distributions $ 1.70
Total return* +20.49%**
Class B -- 12-month performance
(All figures per share)
Net asset value (NAV)
July 31, 1999 $40.65
July 31, 1998 $35.61
Increase $ 5.04
Distributions -- Aug. 1, 1998 - July 31, 1999
From income $ --
From capital gains $ 1.70
Total distributions $ 1.70
Total return* +19.58%**
Class Y -- 12-month performance
(All figures per share)
Net asset value (NAV)
July 31, 1999 $42.37
July 31, 1998 $36.74
Increase $ 5.63
Distributions -- Aug. 1, 1998 - July 31, 1999
From income $ --
From capital gains $ 1.70
Total distributions $ 1.70
Total return* +20.59%**
*The prospectus discusses the effect of sales charge, if any, on the various
classes.
**The total return is a hypothetical investment in the Fund with all
distributions reinvested.
AXP Growth Fund (This annual report is not part of the prospectus.)
<PAGE>
The 10 Largest Holdings
Percent Value
(of net assets) (as of July 31, 1999)
Cisco Systems 5.52% $385,174,999
Tellabs 5.47 381,687,500
Microsoft 5.17 360,412,500
Texas Instruments 4.75 331,200,000
Intl Business Machines 4.69 326,787,500
MCI WorldCom 4.61 321,750,000
EMC 4.52 314,925,000
Citigroup 3.36 233,953,125
Applied Materials 3.10 215,812,500
Intel 2.97 207,000,000
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
(icon of) pie chart
The 10 holdings listed here
make up 44.16% of net assets
(This annual report is not part of the prospectus.) Annual Report - 1999
<PAGE>
Making the Most of the Fund
BUILD YOUR ASSETS SYSTEMATICALLY
One of the best ways to invest in the Fund is by dollar-cost averaging -- a
time-tested strategy that can make market fluctuations work for you. To
dollar-cost average, simply invest a fixed amount of money regularly. You'll
automatically buy more shares when the Fund's share price is low, fewer shares
when it is high. The chart below shows how dollar-cost averaging works. In these
three hypothetical scenarios, you will see six months of share price
fluctuations.
This strategy does not ensure a profit or avoid a loss if the market declines.
But, if you can continue to invest regularly through changing market conditions
even when the price of your shares fall or the market declines, it can be an
effective way to accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Jan Feb Mar Apr May Jun
$15 $16 $18 $20
$10 $10 $12 $14
$ 5
Accumulated shares* Average market Your average
price per share cost per share
42.25 $15 $14.20
- -------------------------------------------------------------------------------
Jan Feb Mar Apr May Jun
$15
$10 $10 $10
$ 5 $8 $5 $5 $8
Accumulated shares* Average market Your average
price per share cost per share
85.0 $7.66 $7.05
- -------------------------------------------------------------------------------
Jan Feb Mar Apr May Jun
$15
$10 $10 $8 $6 $7
$ 5 $4 $4
Accumulated shares* Average market Your average
price per share cost per share
103.5 $6.50 $5.80
- -------------------------------------------------------------------------------
$100 invested per month. Total invested: $600.
*Shares purchased is determined by dividing the amount invested per month by the
current share price.
THREE WAYS TO BENEFIT FROM A MUTUAL FUND:
o your shares increase in value when the Fund's investments do well
o you receive capital gains when the gains on investments sold by the Fund
exceed losses
o you receive income when the Fund's stock dividends, interest and short-term
gains exceed its expenses.
All three make up your total return. You potentially can increase your
investment if, like most investors, you reinvest your dividends and capital gain
distributions to buy additional shares of the Fund or another fund.
AXP Growth Fund (This annual report is not part of the prospectus.)
<PAGE>
The Fund's Long-term Performance
How $10,000 has grown in AXP Growth Fund
X
$52,718
AXP Growth Fund
Class A
$50,000
Lipper Growth
Fund Index
$40,000
X
S&P 500 Index
$30,000
$20,000
$9,500
8/1/89 7/90 7/91 7/92 7/93 7/94 7/95 7/96 7/97 7/98 7/99
Average annual total return (as of July 31, 1999)
1 year 5 years 10 years Since inception*
Class A +14.46% +23.95% +18.09% --%
Class B +14.58% --% --% +24.81%
Class Y +20.59% --% --% +26.12%
*Inception date was March 20, 1995.
Assumes: Holding period from 8/1/89 to 7/31/99. Returns do not reflect taxes
payable on distributions. Reinvestment of all income and capital gain
distributions for the Fund, with a value of $35,489. Also see "Past Performance"
in the Fund's current prospectus.
On the graph above you can see how the Fund's total return compared to two
widely cited unmanaged performance indexes, the Standard & Poor's 500 Index
(S&P500 Index) and the Lipper Growth Fund Index. In comparing AXPGrowth Fund
(Class A) to the two indexes, you should take into account the fact that the
Fund's performancereflects the maximum sales charge of 5%, while suchcharges are
not reflected in the performance of the indexes.
Your investment and return values fluctuate so that your shares, when redeemed,
may be worth more or less than the original cost. Average annual total return
figures reflect the impact of the applicable sales charge up to a maximum of 5%.
This was a period of widely fluctuating security prices. Past performance is no
guarantee of future results.
S&P 500, an unmanaged list of common stocks, is frequently used as a general
measure of market performance. The index reflects reinvestment of all
distributions and changes in market prices, but excludes brokerage commissions
or other fees. However, the S&P 500 companies may be generally larger than those
in which the Fund invests.
Lipper Growth Fund Index, an unmanaged index published by Lipper Analytical
Services, Inc., includes 30 funds that are generally similar to this fund,
although some funds in the index may have somewhat different investment policies
or objectives.
AXP Growth Fund (This annual report is not part of the prospectus.)
<PAGE>
Federal Income Tax Information
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
AXP Growth Fund
Fiscal year ended July 31, 1999
Class A
Capital gain distribution taxable as long-term capital gain.
Payable date Per share
Dec. 23, 1998 $1.70069
Total distribution $1.70069
Class B
Capital gain distribution taxable as long-term capital gain.
Payable date Per share
Dec. 23, 1998 $1.70069
Total distribution $1.70069
Class Y
Capital gain distribution taxable as long-term capital gain.
Payable date Per share
Dec. 23, 1998 $1.70069
Total distribution $1.70069
AXP Growth Fund (This annual report is not part of the prospectus.)
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S-6455 P (9/99)
AXP Growth Fund
IDS Tower 10
Minneapolis, MN 55440-0010
AMERICAN EXPRESS Financial Advisors
<PAGE>
AXP(SM)Research
Opportunities
Fund
1999 ANNUAL REPORT
(PROSPECTUS ENCLOSED)
(icon of) ruler
The goal of AXP Research Opportunities Fund is long-term growth of capital. The
Fund primarily invests in securities of companies that comprise the Standard &
Poor's 500 Index (S&P 500 Index) that are believed to be undervalued or are
believed to offer potential for long-term growth.
(This annual report includes a prospectus that describes in detail the Fund's
objective, investment strategy, risks, sales charges, fees and other matters of
interest. Please read the prospectus carefully before you invest or send money.)
Distributed by American Express Financial Advisors Inc.
AMERICAN EXPRESS Financial Advisors
<PAGE>
The Rewards of Research
Behind every decision to buy or sell a stock is information -- in most cases,
information gathered by a research analyst. AXP Research Opportunities Fund is
designed to make the most of that research by investing only in Standard &
Poor's 500 stocks that carry our analysts' highest rating. The intention is to
construct a portfolio that has the potential to outperform the stock market as a
whole.
AXP Research Opportunities Fund
(This annual report is not part of the prospectus.)
<PAGE>
Table of Contents
1999 ANNUAL REPORT
The purpose of this annual report is to tell investors how the Fund performed.
From the Chairman 4
From the Portfolio Managers 4
Fund Facts 6
The 10 Largest Holdings 7
Making the Most of the Fund 8
The Fund's Long-term Performance 9
Independent Auditors' Report (Fund) 10
Financial Statements(Fund) 11
Notes to Financial Statements (Fund) 14
Independent Auditors' Report
(Portfolio) 19
Financial Statements(Portfolio) 20
Notes to Financial Statements
(Portfolio) 23
Investments in Securities 27
Federal Income Tax Information 33
1999 PROSPECTUS
The prospectus, which is bound into the middle of this annual report, describes
the Fund in detail.
The Fund 3p
Goal 3p
Investment Strategy 3p
Risks 5p
Past Performance 6p
Fees and Expenses 8p
Management 9p
Buying and Selling Shares 9p
Valuing Fund Shares 9p
Investment Options 10p
Purchasing Shares 11p
Sales Charges 14p
Exchanging/Selling Shares 18p
Distributions and Taxes 23p
Personalized Shareholder
Information 24p
Master/Feeder Structure 25p
About the Company 26p
Quick Telephone Reference 28p
Financial Highlights 29p
(This annual report is not part of the prospectus.) Annual Report-1999
<PAGE>
(picture of) Arne H. Carlson
Arne H. Carlson
Chairman of the board
From the Chairman
American Express(R) Funds held shareholder meetings in June 1999. Shareholders
approved all of the proposals advanced by management. Among the proposals were:
o The election of Board members and the selection of KPMG LLP as independent
auditors.
o Change in the Fund name from "IDS" to "AXP."
o A new shareholder service and distribution plan.
o A change in the investment management services agreement.
No other business was presented at the meeting, which was concluded by a report
to shareholders from the Investment Department of American Express Financial
Corporation.
Thanks to all of you for your effort in reviewing the proxy material and voting
your proxies.
Arne H. Carlson
(picture of) Keith Tufte
Keith Tufte
Portfolio manager
(picture of) Jim Johnson
Jim Johnson
Portfolio manager
From the Portfolio Managers
AXP Research Opportunities Fund recovered from a bad start to produce a solid
gain for the past fiscal year. For the 12 months -- August 1998 through July
1999 -- the total return from the Fund's Class A shares was 19.21%. (Part of the
return was in the form of a capital gain, which was paid to shareholders in
December 1998 and reduced the Fund's net asset value by the same amount at that
time.)
The stock market was in rapid retreat when the period began last year, as
worries about a possible slump in corporate profits fueled widespread
stock-selling. Most of the damage was done by the end of August, but by that
time the Fund had lost more than 15% of its value.
Investors' moods brightened in the fall, though, as three reductions in
short-term interest rates by the Federal Reserve restored some calm to the
financial markets. Stocks wasted little time in responding, as they began a
resolute advance that not only made up for the late-summer swoon but took the
market to an all-time high in early January. The Fund largely kept up with the
powerful pace of the market, gaining more than 30% from September through the
end of the period in January.
From that point, a rise in long-term interest rates made the going tougher for
the market. Still, the Fund was able to gain a little ground overall during the
final six months of the period.
LARGE-CAPS LEAD AGAIN
As has been the case in recent years, large-capitalization growth stocks most
often led the way during the market's advances. That worked to the advantage of
the Fund, as it focuses on stocks of companies in the Standard & Poor's 500, a
representative index of large-cap stocks. Among the Fund's biggest holdings for
the period were: General Electric, Warner Lambert, Coca-Cola, Bristol Myers
Squibb, Intel, MCI Worldcom, Pfizer, Lucent and Wal-Mart.
On a stock sector basis, the largest investment (about a quarter of assets) was
in consumer non-cyclical stocks, which include the food, beverage and
pharmaceutical areas. The rest of the portfolio was largely made up of
technology (including computers, telecommunications), financial services
(insurance, brokerage), consumer cyclical (retailing, housing) and utilities
(electricity, telephone service).
Looking toward the current fiscal year, the investment environment has changed
somewhat. While corporate profits are still generally good, the economy remains
healthy and inflation
has yet to pick up in a meaningful way, long-term interest rates are
considerably higher than they were several months ago. While that doesn't
guarantee trouble for stocks, it could make gains more difficult to come by. In
any event, the Fund's focus will continue to be on large-cap stocks that our
securities analysts believe have the best performance potential given the market
conditions.
Keith Tufte
Jim Johnson
(This annual report is not part of the prospectus.) Annual Report-1999
<PAGE>
Fund Facts
Class A -- 12-month performance
(All figures per share)
Net asset value (NAV)
July 31, 1999 $7.94
July 31, 1998 $6.98
Increase $0.96
Distributions -- Aug. 1, 1998 - July 31, 1999
From income $0.32
From capital gains $0.03
Total distributions $0.35
Total return* +19.21%**
Class B -- 12-month performance
(All figures per share)
Net asset value (NAV)
July 31, 1999 $7.76
July 31, 1998 $6.88
Increase $0.88
Distributions -- Aug. 1, 1998 - July 31, 1999
From income $0.32
From capital gains $0.03
Total distributions $0.35
Total return* +18.31%**
Class Y -- 12-month performance
(All figures per share)
Net asset value (NAV)
July 31, 1999 $7.96
July 31, 1998 $7.01
Increase $0.95
Distributions -- Aug. 1, 1998 - July 31, 1999
From income $0.34
From capital gains $0.03
Total distributions $0.37
Total return* +19.34%**
*The prospectus discusses the effect of sales charges, if any, on the various
classes.
**The total return is a hypothetical investment in the Fund with all
distributions reinvested.
AXP Research Opportunities Fund
(This annual report is not part of the prospectus.)
<PAGE>
The 10 Largest Holdings
Percent Value
(of net assets) (as of July 31, 1999)
General Electric 4.51% $34,269,600
Lucent Technologies 2.93 22,276,424
Wal-Mart Stores 2.79 21,184,149
Coca-Cola 2.73 20,735,438
Cisco Systems 2.57 19,496,067
Bank of America 2.48 18,820,697
Intl Business Machines 2.43 18,463,493
AT&T 2.39 18,166,438
MCI WorldCom 2.31 17,513,512
Bristol-Myers Squibb 2.24 17,010,700
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
(icon of) pie chart
The 10 holdings listed here
make up 27.38% of net assets
(This annual report is not part of the prospectus.) Annual Report-1999
<PAGE>
Making the Most of the Fund
BUILD YOUR ASSETS SYSTEMATICALLY
One of the best ways to invest in the Fund is by dollar-cost averaging -- a
time-tested strategy that can make market fluctuations work for you. To
dollar-cost average, simply invest a fixed amount of money regularly. You'll
automatically buy more shares when the Fund's share price is low, fewer shares
when it is high. The chart below shows how dollar-cost averaging works. In these
three hypothetical scenarios, you will see six months of share price
fluctuations.
This strategy does not ensure a profit or avoid a loss if the market declines.
But, if you can continue to invest regularly through changing market conditions
even when the price of your shares fall or the market declines, it can be an
effective way to accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Jan Feb Mar Apr May Jun
$15 $16 $18 $20
$10 $10 $12 $14
$ 5
Accumulated shares* Average market Your average
price per share cost per share
42.25 $15 $14.20
- -------------------------------------------------------------------------------
Jan Feb Mar Apr May Jun
$15
$10 $10 $10
$ 5 $8 $5 $5 $8
Accumulated shares* Average market Your average
price per share cost per share
85.0 $7.66 $7.05
- -------------------------------------------------------------------------------
Jan Feb Mar Apr May Jun
$15
$10 $10 $8 $6 $7
$ 5 $4 $4
Accumulated shares* Average market Your average
price per share cost per share
103.5 $6.50 $5.80
- -------------------------------------------------------------------------------
$100 invested per month. Total invested: $600.
*Shares purchased is determined by dividing the amount invested per month by the
current share price.
THREE WAYS TO BENEFIT FROM A MUTUAL FUND:
o your shares increase in value when the Fund's investments do well
o you receive capital gains when the gains on investments sold by the Fund
exceed losses
o you receive income when the Fund's stock dividends, interest and short-term
gains exceed its expenses.
All three make up your total return. You potentially can increase your
investment if, like most investors, you reinvest your dividends and capital gain
distributions to buy additional shares of the Fund or another fund.
AXP Research Opportunities Fund
(This annual report is not part of the prospectus.)
<PAGE>
The Fund's Long-term Performance
How $10,000 has grown in AXP Research Opportunities Fund
$30,000
X
$20,000 S&P 500 Index
X
$17,740
AXP Research Opportunities Fund
Class A
$10,000
$9,500
9/1/96 11/96 3/97 7/97 1/97 3/98 7/98 11/98 3/99 7/99
Average annual total return (as of July 31, 1999)
1 year Since inception*
Class A +13.25% +20.29%
Class B +13.31% +20.78%
Class Y +19.34% +22.58%
*Inception date was August 19, 1996.
Assumes:Holding period from 9/1/96 to 7/31/99. Returns do not reflect taxes
payable on distributions. Reinvestment of all income and capital gain
distributions for the Fund, with a value of $2,219. Also see "Past Performance"
in the Fund's current prospectus.
On the graph above you can see how the Fund's total return compared to a widely
cited performance index, Standard & Poor's 500 Index the (S&P 500 Index). In
comparing AXP Research Opportunities Fund (Class A) to this index, you should
take into account the fact that the Fund's performance reflects the maximum
sales charge of 5%, while such charges are not reflected in the performance of
the index.
Your investment and return values fluctuate so that your shares, when redeemed,
may be worth more or less than the original cost. Average annual total return
figures reflect the impact of the applicable sales charge up to a maximum of 5%.
This was a period of widely fluctuating security prices. Past performance is no
guarantee of future results.
S&P500 Index, an unmanaged list of common stocks, is frequently used as a
general measure of market performance. The index reflects reinvestment of all
distributions and changes in market prices, but excludes brokerage commissions
or other fees. However, the S&P 500 companies may be generally larger than those
in which the Fund invests.
(This annual report is not part of the prospectus.) Annual Report-1999
<PAGE>
Federal Income Tax Information
The Fund is required by the Internal Revenue Code of 1986 to tell its
shareholders about the tax treatment of the dividends it pays during its fiscal
year. The dividends listed below are reported to you on Form 1099-DIV, Dividends
and Distributions. Shareholders should consult a tax advisor on how to report
distributions for state and local tax purposes.
AXP Research Opportunities Fund
Fiscal year ended July 31, 1999
Class A
Income distribution taxable as dividend income, 15.80% qualifying for deduction
by corporations.
Payable date Per share
Dec. 23, 1998 $0.32443
Capital gain distribution taxable as long-term capital gain.
Payable date Per share
Dec. 23, 1998 $0.02770
Total distributions $0.35213
The distributions of $0.35213 per share, payable Dec. 23, 1998, consisted of
$0.00336 derived from net investment income, $0.32107 from net short-term
capital gains (a total of $0.32443 taxable as dividend income) and $0.02770 from
net long-term capital gains.
(This annual report is not part of the prospectus.) Annual Report-1999
<PAGE>
Class B
Income distribution taxable as dividend income, 15.80% qualifying for deduction
by corporations.
Payable date Per share
Dec. 23, 1998 $0.32107
Capital gain distribution taxable as long-term capital gain.
Payable date Per share
Dec. 23, 1998 $0.02770
Total distributions $0.34877
The distributions of $0.34877 per share, payable Dec. 23, 1998, consisted of
$0.32107 from net short-term capital gains and $0.02770 from net long-term
capital gains.
AXP Research Opportunities Fund
(This annual report is not part of the prospectus.)
<PAGE>
Class Y
Income distribution taxable as dividend income, 15.80% qualifying for deduction
by corporations.
Payable date Per share
Dec. 23, 1998 $0.34035
Capital gain distribution taxable as long-term capital gain.
Payable date Per share
Dec. 23, 1998 $0.02770
Total distributions $0.36805
The distributions of $0.36805 per share, payable Dec. 23, 1998, consisted of
$0.01928 derived from net investment income, $0.32107 from net short-term
capital gains (a total of $0.34035 taxable as dividend income) and $0.02770 from
net long-term capital gains.
(This annual report is not part of the prospectus.) Annual Report-1999
<PAGE>
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S-6356 E (9/99)
AXP Research Opportunities Fund
IDS Tower 10
Minneapolis, MN 55440-0010
AMERICAN EXPRESS Financial Advisors
