AXP(SM) New
Dimensions
Fund
2000 SEMIANNUAL REPORT
American Express (R) Funds
(icon of) ruler
AXP New Dimensions Fund seeks to provide shareholders with long-term growth of
capital.
<PAGE>
Fast-track Stocks
What type of stock has been the driving force behind the dramatic increases
posted by U.S. and foreign stock markets in recent years? The answer is growth
stocks -- that is stocks of companies that have a track record of increasing
their business and profits at a rapid pace. These companies, some large and
well-known, others smaller and newly discovered, form the foundation of AXPNew
Dimensions Fund. The Fund looks for companies from around the world that not
only have a history of continuous growth, but are poised to continue growing due
to their superior management, marketing innovation and/or technological
advances.
CONTENTS
From the Chairman 3
From the Portfolio Manager 3
Fund Facts 5
The 10 Largest Holdings 6
Financial Statements (Fund) 7
Notes to Financial Statements (Fund) 10
Financial Statements (Portfolio) 16
Notes to Financial Statements (Portfolio) 19
Investments in Securities 24
<PAGE>
(picture of) Arne H. Carlson
Arne H. Carlson
Chariman of the board
From the Chairman
We are in an extraordinary period for investing in financial assets, with many
stocks at their all-time highs. Looking at year 2000, American Express Financial
Corporation, the Fund's investment manager, expects the economy to continue to
grow and long-term interest rates to rise only slightly. This is a great time to
take a close look at your goals and investments. We encourage you to:
o Consult a professional investment adviser who can help you cut through
mountains of data.
o Set financial goals that extend beyond those achievable through retirement
plans of your employer.
o Learn as much as you can about your current investments.
The portfolio manager's letter that follows provides a review of the Fund's
investment strategies and performance. The annual report contains other valuable
information as well. The Fund's prospectus describes its investment objectives
and how it intends to achieve those objectives. As experienced investors know,
information is vital to making good investment decisions.
So, take a moment and decide again whether the Fund's investment objectives and
management style fit with your other investments to help you reach your
financial goals. And make it a practice on a regular basis to assess your
investment options.
On behalf of the Board,
Arne H. Carlson
(picture of) Gordon M. Fines
Gordon M. Fines
Portfolio manager
From the Portfolio Manager
A mid-period surge by the stock market set the stage for a double-digit gain by
AXP New Dimensions during the first half of the fiscal year. For the six months
- -- August 1999 through January 2000 -- the Fund's Class A shares generated a
total return (excluding the sales charge) of 17.55%. (A portion of the Fund's
return came in the form of a capital gain, which was distributed to shareholders
in December 1999 and reduced the Fund's net asset value by the same amount at
that time.)
The stock market struggled early in the period, as concerns about higher
interest rates, potentially higher inflation and the possible impact of the Y2K
computer bug weighed on investors' minds. Thanks largely to the strength of the
its technology-related holdings, the Fund fared better than the market as a
whole, but it was still down about one percent through September.
STOCKS GET BACK ON TRACK
But by mid-October, buoyed by fresh reports still-low inflation, generally
healthy corporate profits and growing excitement regarding the Internet, stocks
were once again moving forward. Within weeks, the advance turned into a
remarkable rally that kept gathering momentum through December and into the
first few days of the new year. Illustrating the strength of the surge, the Fund
gained more than 10% in December. The Fund gave back some of its gain in
January, though, as inflation worries resurfaced, sending the market into
retreat.
Clearly driving the Fund's performance during the six months were technology and
telecommunications stocks, which made up nearly half of the portfolio at times.
The main areas of emphasis were semiconductors, software, networking and
wireless communications, with IBM, Cisco Systems, Microsoft and JDS Uniphase
among the largest and more productive holdings. Among other sectors, retailing,
highlighted by Wal-Mart, also made a good contribution.
I made only minor changes to the portfolio during the period. Late in 1999, I
reduced the technology exposure somewhat, given the rapid and substantial run-up
in stock prices in that sector. Concurrently, I added a small amount of
commodity-related stocks in the paper and chemical areas, which I believe could
benefit from the ongoing strength of the economy.
As the second half of the fiscal year begins, it's clear that investors are
keeping a close eye on inflation and the Federal Reserve Board. Should the Fed
decide in the months ahead to raise short-term interest rates substantially to
keep inflation at bay, I think stocks will find it difficult to maintain a
sustained advance. Still, assuming the economy and corporate profits remain
healthy, I think the longer-term outlook for the market continues to be
positive.
Gordon M. Fines
<PAGE>
Fund Facts
Class A -- 6-month performance
(All figures per share)
Net asset value (NAV)
Jan. 31, 2000 $34.61
July 31, 1999 $31.21
Increase $ 3.40
Distributions -- Aug. 1, 1999 - Jan. 31, 2000
From income $ 0.05
From capital gains $ 2.06
Total distribution $ 2.11
Total return* +17.55%**
Class B -- 6-month performance
(All figures per share)
Net asset value (NAV)
Jan. 31, 2000 $33.75
July 31, 1999 $30.54
Increase $ 3.21
Distributions -- Aug. 1, 1999 - Jan. 31, 2000
From income $ --
From capital gains $ 2.06
Total distribution $ 2.06
Total return* +17.10%**
Class Y -- 6-month performance
(All figures per share)
Net asset value (NAV)
Jan. 31, 2000 $34.65
July 31, 1999 $31.24
Increase $ 3.41
Distributions -- Aug. 1, 1999 - Jan. 31, 2000
From income $ 0.09
From capital gains $ 2.06
Total distribution $ 2.15
Total return* +17.65%**
*Returns do not include sales load, 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.
<PAGE>
The 10 Largest Holdings
Percent Value
(of net assets) (as of Jan. 31, 2000)
Cisco Systems 5.46% $1,532,999,999
JDS Uniphase 4.36 1,223,625,000
General Electric 3.57 1,000,312,500
Wal-Mart Stores 3.55 996,450,000
Exxon Mobil 2.98 835,000,000
Microsoft 2.79 783,000,000
Texas Instruments 2.77 776,700,000
Intel 2.47 692,562,500
Citigroup 2.38 666,275,000
EMC 2.28 639,000,000
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 32.61% of net assets
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<CAPTION>
Financial Statements
Statement of assets and liabilities
AXP New Dimensions Fund, Inc.
Jan. 31, 2000 (Unaudited)
Assets
Investments in Growth Trends Portfolio (Note 1) $28,023,690,752
---------------
Liabilities
<S> <C>
Accrued distribution fee 792,913
Accrued service fee 50,322
Accrued transfer agency fee 185,589
Accrued administrative services fee 66,093
Other accrued expenses 1,757,431
---------
Total liabilities 2,852,348
---------
Net assets applicable to outstanding capital stock $28,020,838,404
===============
Represented by
Capital stock-- $.01 par value (Note 1) $ 8,134,259
Additional paid-in capital 15,525,989,394
Excess of distributions over net investment income (2,402,794)
Accumulated net realized gain (loss) 849,600,307
Unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 11,639,517,238
--------------
Total -- representing net assets applicable to outstanding capital stock $28,020,838,404
===============
Net assets applicable to outstanding shares: Class A $16,494,860,954
Class B $ 5,454,386,807
Class Y $ 6,071,590,643
Net asset value per share of outstanding capital stock: Class A shares 476,591,186 $ 34.61
Class B shares 161,605,177 $ 33.75
Class Y shares 175,229,501 $ 34.65
----------- ---------------
See accompanying notes to financial statements.
</TABLE>
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<CAPTION>
Statement of operations
AXP New Dimensions Fund, Inc.
Six months ended Jan. 31, 2000 (Unaudited)
Investment income
Income:
<S> <C>
Dividends $ 67,206,775
Interest 74,918,257
----------
Total income 142,125,032
-----------
Expenses (Note 2):
Expenses allocated from Growth Trends Portfolio 67,026,977
Distribution fee
Class A 18,742,561
Class B 23,665,670
Transfer agency fee 12,143,637
Incremental transfer agency fee
Class A 744,914
Class B 564,210
Service fee - Class Y 2,915,264
Administrative services fees and expenses 3,803,483
Compensation of board members 15,107
Registration fees 661,031
Printing and postage 804,656
Audit fees 5,375
Other 39,422
------
Total expenses 131,132,307
Earnings credits on cash balances (Note 2) (322,767)
--------
Total net expenses 130,809,540
-----------
Investment income (loss) -- net 11,315,492
----------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on:
Security transactions 1,245,122,344
Foreign currency transactions 513,759
-------
Net realized gain (loss) on investments 1,245,636,103
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 2,869,191,241
-------------
Net gain (loss) on investments and foreign currencies 4,114,827,344
-------------
Net increase (decrease) in net assets resulting from operations $4,126,142,836
==============
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Statements of changes in net assets
AXP New Dimensions Fund, Inc.
Jan. 31, 2000 July 31, 1999
Six months ended Year ended
(Unaudited)
Operations and distributions
<S> <C> <C>
Investment income (loss)-- net $ 11,315,492 $ 27,821,947
Net realized gain (loss) on investments 1,245,636,103 1,168,262,746
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 2,869,191,241 2,457,961,767
------------- -------------
Net increase (decrease) in net assets resulting from operations 4,126,142,836 3,654,046,460
------------- -------------
Distributions to shareholders from:
Net investment income
Class A (26,060,041) (23,096,526)
Class Y (15,301,630) (12,552,823)
Net realized gain
Class A (916,264,494) (657,559,948)
Class B (304,276,930) (175,255,810)
Class Y (339,490,042) (277,045,972)
------------ ------------
Total distributions (1,601,393,137) (1,145,511,079)
-------------- --------------
Capital share transactions (Note 3)
Proceeds from sales
Class A shares (Note 2) 1,848,917,737 3,097,924,731
Class B shares 858,721,011 1,363,120,583
Class Y shares 903,789,643 1,705,978,208
Reinvestment of distributions at net asset value
Class A shares 881,328,340 644,363,259
Class B shares 302,303,080 174,209,631
Class Y shares 354,791,672 289,598,795
Payments for redemptions
Class A shares (1,292,197,676) (2,230,078,175)
Class B shares (Note 2) (228,041,036) (375,914,018)
Class Y shares (1,285,009,103) (1,675,328,217)
-------------- --------------
Increase (decrease) in net assets from capital share transactions 2,344,603,668 2,993,874,797
------------- -------------
Total increase (decrease) in net assets 4,869,353,367 5,502,410,178
Net assets at beginning of period 23,151,485,037 17,649,074,859
-------------- --------------
Net assets at end of period $28,020,838,404 $23,151,485,037
=============== ===============
Undistributed (excess of distributions over) net investment income $ (2,402,794) $ 27,643,385
--------------- ---------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
AXP New Dimensions Fund, Inc.
(Unaudited as to Jan. 31, 2000)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 (as amended) as
a diversified, open-end management investment company. The Fund has 10 billion
authorized shares of capital stock.
The Fund offers Class A, Class B and Class Y shares.
o Class A shares are sold with a front-end sales charge.
o Class B shares may be subject to a contingent deferred sales charge and such
shares automatically convert to Class A shares during the ninth calendar year
of ownership.
o Class Y shares have no sales charge and are offered only to qualifying
institutional investors.
All classes of shares have identical voting, dividend and liquidation rights.
The level of distribution fee, incremental transfer agency fee and service fee
(class specific expenses) differs among classes. Income, expenses (other than
class specific expenses) and realized and unrealized gains or losses on
investments are allocated to each class of shares based upon its relative net
assets.
Investment in Growth Trends Portfolio
The Fund invests all of its assets in the Growth Trends Portfolio (the
Portfolio), a series of Growth Trust (the Trust), an open-end investment company
that has the same objectives as the Fund. The Portfolio invests primarily in
common stocks of companies showing potential for significant growth and
operating in areas where economic or technological changes are occurring.
The Fund records daily its share of the Portfolio's income, expenses and
realized and unrealized gains and losses. The financial statements of the
Portfolio are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The Fund records its investment in the Portfolio at the value that is equal to
the Fund's proportionate ownership interest in the Portfolio's net assets. The
percentage of the Portfolio owned by the Fund as of Jan. 31, 2000, was 99.90%.
Valuation of securities held by the Portfolio is discussed in Note 1 of the
Portfolio's "Notes to financial statements" (included elsewhere in this report).
Use of estimates
Preparing financial statements that conform to generally accepted accounting
principles requires management to make estimates (e.g., on assets and
liabilities) that could differ from actual results.
Federal taxes
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute substantially all
of its taxable income to the shareholders. No provision for income or excise
taxes is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes, and losses deferred due to
"wash sale" transactions. 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. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
Dividends to shareholders
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
2. EXPENSES AND SALES CHARGES
In addition to the expenses allocated from the Portfolio, the Fund accrues its
own expenses as follows:
The Fund has an agreement with American Express Financial Corporation (AEFC) to
provide administrative services. Under an Administrative Services Agreement, the
Fund pays AEFC a fee for administration and accounting services at a percentage
of the Fund's average daily net assets in reducing percentages from 0.05% to
0.025% annually. A minor portion of additional administrative service expenses
paid by the Fund are consultant's fees and fund office expenses. Under this
agreement, the Fund also pays taxes, audit and certain legal fees, registration
fees for shares, compensation of board members, corporate filing fees and any
other expenses properly payable by the Fund and approved by the board.
Under a separate Transfer Agency Agreement, American Express Client Service
Corporation (AECSC) maintains shareholder accounts and records. The Fund pays
AECSC an annual fee per shareholder account for this service as follows:
o Class A $19
o Class B $20
o Class Y $17
The Fund has agreements with American Express Financial Advisors Inc. (the
Distributor) for distribution and shareholder services. Under a Plan and
Agreement of Distribution (the Plan), the Fund pays a distribution fee at an
annual rate up to 0.25% of the Fund's average daily net assets attributable to
Class A shares and up to 1.00% for Class B shares.
Under a Shareholder Service Agreement, the Fund's Class Y shares pay a fee for
service provided to shareholders by financial advisors and other servicing
agents. The fee is calculated at a rate of 0.10% of the Fund's average daily net
assets attributable to Class Y shares.
Sales charges received by the Distributor for distributing Fund shares were
$48,737,820 for Class A and $3,191,282 for Class B for the six months ended Jan.
31, 2000.
During the six months ended Jan. 31, 2000, the Fund's transfer agency fees were
reduced by $322,767 as a result of earnings credits from overnight cash
balances.
3. CAPITAL SHARE TRANSACTIONS
Transactions in shares of capital stock for the periods indicated are as
follows:
Six months ended Jan. 31, 2000
Class A Class B Class Y
Sold 55,818,882 26,557,008 27,180,090
Issued for reinvested distributions 24,950,358 8,772,856 10,042,221
Redeemed (38,978,781) (6,996,446) (38,454,742)
----------- ---------- -----------
Net increase (decrease) 41,790,459 28,333,418 (1,232,431)
Year ended July 31, 1999
Class A Class B Class Y
Sold 107,182,712 47,756,570 58,545,517
Issued for reinvested distributions 22,657,820 6,230,043 10,176,712
Redeemed (77,704,800) (13,220,315) (57,874,099)
----------- ----------- -----------
Net increase (decrease) 52,135,732 40,766,298 10,848,130
4. BANK BORROWINGS
The Fund has a revolving credit agreement with U.S. Bank, N.A., whereby the Fund
is permitted to have bank borrowings for temporary or emergency purposes to fund
shareholder redemptions. The Fund must have asset coverage for borrowings not to
exceed the aggregate of 333% of advances equal to or less than five business
days plus 367% of advances over five business days. The agreement, which enables
the Fund to participate with other American Express mutual funds, permits
borrowings up to $200 million, collectively. Interest is charged to each Fund
based on its borrowings at a rate equal to the Federal Funds Rate plus 0.30% or
the Eurodollar Rate (Reserve Adjusted) plus 0.20%. Borrowings are payable up to
90 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.05%
per annum. The Fund had no borrowings outstanding during the six months ended
Jan. 31, 2000.
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<CAPTION>
5. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
Fiscal period ended July, 31
Per share income and capital changesa
Class A
2000b 1999 1998 1997 1996c
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $31.21 $27.59 $25.69 $18.54 $17.24
Income from investment operations:
Net investment income (loss) (.02) .06 .13 .15 .17
Net gains (losses) (both realized and unrealized) 5.53 5.31 3.67 7.80 1.88
Total from investment operations 5.51 5.37 3.80 7.95 2.05
Less distributions:
Dividends from net investment income (.05) (.06) (.17) (.13) (.15)
Distributions from realized gains (2.06) (1.69) (1.73) (.67) (.60)
Total distributions (2.11) (1.75) (1.90) (.80) (.75)
Net asset value, end of period $34.61 $31.21 $27.59 $25.69 $18.54
Ratios/supplemental data
Net assets, end of period (in millions) $16,495 $13,568 $10,559 $8,663 $5,626
Ratio of expenses to average daily net assetse .93%d .86% .82% .91% .94%d
Ratio of net investment income (loss)
to average daily net assets .19%d .24% .55% .73% .78%d
Portfolio turnover rate
(excluding short-term securities) 16% 34% 38% 32% 41%
Total returnf 17.55% 20.04% 16.19% 43.81% 12.18%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Six months ended Jan. 31, 2000 (Unaudited).
c The Fund's fiscal year-end was changed from Sept. 30, to July 31, effective
1996.
d Adjusted to an annual basis.
e Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
f Total return does not reflect payment of a sales charge.
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<CAPTION>
Fiscal period ended July, 31
Per share income and capital changesa
Class B Class Y
2000b 1999 1998 1997 1996c 2000b 1999 1998 1997 1996c
Net asset value,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
beginning of period $30.54 $27.19 $25.38 $18.38 $17.18 $31.24 $27.62 $25.72 $18.56 $17.26
Income from investment operations:
Net investment income (loss) .13 (.10) -- (.02) .03 (.01) .09 .15 .18 .19
Net gains (losses) (both
realized and unrealized) 5.14 5.14 3.57 7.73 1.88 5.57 5.30 3.68 7.81 1.88
Total from investment
operations 5.27 5.04 3.57 7.71 1.91 5.56 5.39 3.83 7.99 2.07
Less distributions:
Dividends from net
investment income -- -- (.03) (.04) (.11) (.09) (.08) (.20) (.16) (.17)
Distributions from
realized gains (2.06) (1.69) (1.73) (.67) (.60) (2.06) (1.69) (1.73) (.67) (.60)
Total distributions (2.06) (1.69) (1.76) (.71) (.71) (2.15) (1.77) (1.93) (.83) (.77)
Net asset value,
end of period $33.75 $30.54 $27.19 $25.38 $18.38 $34.65 $31.24 $27.62 $25.72 $18.56
Ratios/supplemental data
Net assets, end of period
(in millions) $5,454 $4,070 $2,515 $1,552 $593 $6,072 $5,513 $4,575 $3,745 $2,340
Ratio of expenses to average
daily net assetse 1.69%d 1.63% 1.58% 1.67% 1.71%d .76%d .77% .75% .76% .77%d
Ratio of net investment
income (loss) to average
daily net assets (.58%)d (.53%) (.23%) (.02%) .01%d .36%d .33% .62% .88% .95%d
Portfolio turnover rate (excluding
short-term securities) 16% 34% 38% 32% 41% 16% 34% 38% 32% 41%
Total returnf 17.10% 19.13% 15.31% 42.72% 11.47% 17.65% 20.12% 16.28% 44.02% 12.34%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Six months ended Jan. 31, 2000 (Unaudited).
c The Fund's fiscal year-end was changed from Sept. 30, to July 31, effective
1996.
d Adjusted to an annual basis.
e Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
f Total return does not reflect payment of a sales charge.
</TABLE>
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<TABLE>
<CAPTION>
Financial Statements
Statement of assets and liabilities Growth Trends Portfolio
Jan. 31, 2000 (Unaudited)
Assets
Investments in securities, at value (Note 1)
<S> <C>
(identified cost $16,421,093,529) $28,074,942,827
Dividends and accrued interest receivable 7,034,600
Receivable for investment securities sold 147,032,128
U.S. government securities held as collateral (Note 4) 44,366,529
Other prepaid assets 157,220
-------
Total assets 28,273,533,304
--------------
Liabilities
Disbursements in excess of cash on demand deposit 13,425,425
Payable for investment securities purchased 58,937,098
Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 5) 602,720
Payable upon return of securities loaned (Note 4) 146,984,629
Accrued investment management services fee 1,169,826
Other accrued expenses 30,461
------
Total liabilities 221,150,159
-----------
Net assets $28,052,383,145
===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of operations Growth Trends Portfolio
Six months ended Jan. 31, 2000 (Unaudited)
Investment income
Income:
<S> <C>
Dividends $ 67,276,585
Interest 74,897,735
----------
Total income 142,174,320
-----------
Expenses (Note 2):
Investment management services fee 66,450,613
Compensation of board members 27,248
Custodian fees 497,617
Audit fees 16,125
Other 108,330
-------
Total expenses 67,099,933
Earnings credits on cash balances (Note 2) (3,414)
------
Total net expenses 67,096,519
----------
Investment income (loss) -- net 75,077,801
----------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on:
Security transactions (Note 3) 1,246,489,186
Foreign currency transactions 514,641
-------
Net realized gain (loss) on investments 1,247,003,827
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 2,872,085,268
-------------
Net gain (loss) on investments and foreign currencies 4,119,089,095
-------------
Net increase (decrease) in net assets resulting from operations $4,194,166,896
==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statements of changes in net assets Growth Trends Portfolio
Jan. 31, 2000 July 31, 1999
Six months ended Year ended
(Unaudited)
Operations
<S> <C> <C>
Investment income (loss)-- net $ 75,077,801 $ 113,693,386
Net realized gain (loss) on investments 1,247,003,827 1,170,021,836
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 2,872,085,268 2,460,250,976
------------- -------------
Net increase (decrease) in net assets resulting from operations 4,194,166,896 3,743,966,198
Net contributions (withdrawals) from partners 680,431,082 1,762,819,530
----------- -------------
Total increase (decrease) in net assets 4,874,597,978 5,506,785,728
Net assets at beginning of period 23,177,785,167 17,670,999,439
-------------- --------------
Net assets at end of period $28,052,383,145 $23,177,785,167
=============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
Growth Trends Portfolio (Unaudited as to Jan. 31, 2000)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Growth Trends Portfolio (the Portfolio) is a series of Growth Trust (the Trust)
and is registered under the Investment Company Act of 1940 (as amended) as a
diversified, open-end management investment company. Growth Trends Portfolio
invests primarily in common stocks of U.S. and foreign companies showing
potential for significant growth and operating in areas where economic or
technological changes are occurring. The Declaration of Trust permits the
Trustees to issue non-transferable interests in the Portfolio.
The Portfolio's significant accounting policies are summarized below:
Use of estimates
Preparing financial statements that conform to generally accepted accounting
principles requires management to make estimates (e.g., on assets and
liabilities) that could differ from actual results.
Valuation of securities
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Securities for which market quotations are not readily available are valued at
fair value according to methods selected in good faith by the board. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
Option transactions
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Portfolio may buy and write options traded on
any U.S. or foreign exchange or in the over-the-counter market where completing
the obligation depends upon the credit standing of the other party. The
Portfolio also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Portfolio gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Portfolio may incur a loss if the market price of the
security decreases and the option is exercised. The risk in buying an option is
that the Portfolio pays a premium whether or not the option is exercised. The
Portfolio also has the additional risk of being unable to enter into a closing
transaction if a liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Portfolio
will realize a gain or loss when the option transaction expires or closes. When
an option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
Futures transactions
To gain exposure to or protect itself from market changes, the Portfolio may buy
and sell financial futures contracts traded on any U.S. or foreign exchange. The
Portfolio also may buy and write put and call options on these futures
contracts. Risks of entering into futures contracts and related options include
the possibility of an illiquid market and that a change in the value of the
contract or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Portfolio is required to deposit
either cash or securities in an amount (initial margin) equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Portfolio each day. The variation margin payments are
equal to the daily changes in the contract value and are recorded as unrealized
gains and losses. The Portfolio recognizes a realized gain or loss when the
contract is closed or expires.
Foreign currency translations and foreign currency contracts
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes.
The Portfolio may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Portfolio and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Portfolio is subject to the credit risk that
the other party will not complete its contract obligations.
Federal taxes
For federal income tax purposes the Portfolio qualifies as a partnership and
each investor in the Portfolio is treated as the owner of its proportionate
share of the net assets, income, expenses and realized and unrealized gains and
losses of the Portfolio. As a "pass-through" entity, the Portfolio therefore
does not pay any income dividends or capital gain distributions.
Other
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date and interest income,
including level-yield amortization of premium and discount, is accrued daily.
2. FEES AND EXPENSES
The Trust, on behalf of the Portfolio, has an Investment Management Services
Agreement with AEFC to manage its portfolio. Under this agreement, AEFC
determines which securities will be purchased, held or sold. The management fee
is a percentage of the Portfolio's average daily net assets in reducing
percentages from 0.6% to 0.49% annually. The fee is adjusted upward or downward
by a performance incentive adjustment based on a comparison of the performance
of Class A shares of AXP New Dimensions Fund to the Lipper Growth Fund Index.
The maximum adjustment is 0.12% of the Portfolio's average daily net assets
after deducting 1% from the performance difference. If the performance
difference is less than 1%, the adjustment will be zero. The adjustment
increased the fee by $1,675,103 for the six months ended Jan. 31, 2000.
Under the agreement, the Trust also pays taxes, brokerage commissions and
nonadvisory expenses, which include custodian fees, audit and certain legal
fees, fidelity bond premiums, registration fees for units, office expenses,
consultants' fees, compensation of trustees, corporate filing fees, expenses
incurred in connection with lending securities of the Portfolio and any other
expenses properly payable by the Trust or Portfolio and approved by the board.
During the six months ended Jan. 31, 2000, the Portfolio's custodian fees were
reduced by $3,414 as a result of earnings credits from overnight cash balances.
The Portfolio also pays custodian fees to American Express Trust Company, an
affiliate of AEFC.
According to a Placement Agency Agreement, American Express Financial Advisors
Inc. acts as placement agent of the Trust's units.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $3,862,756,502 and $3,736,668,165 respectively, for the
six months ended Jan. 31, 2000. For the same year, the portfolio turnover rate
was 16%. Realized gains and losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with AEFC were $813,421 for the
six months ended Jan. 31, 2000.
4. LENDING OF PORTFOLIO SECURITIES
As of Jan. 31, 2000, securities valued at $147,925,900 were on loan to brokers.
For collateral, the Portfolio received $102,618,100 in cash and U.S. government
securities valued at $44,366,529. Income from securities lending amounted to
$246,398 for the six months ended Jan. 31, 2000. The risks to the Portfolio of
securities lending are that the borrower may not provide additional collateral
when required or return the securities when due.
5. FOREIGN CURRENCY CONTRACTS
As of Jan. 31, 2000, the Portfolio has foreign currency exchange contracts that
obligate it to deliver currencies at specified future dates. The unrealized
appreciation and/or depreciation on these contracts is included in the
accompanying financial statements. See "Summary of significant accounting
policies." The terms of the open contracts are as follows:
Exchange date Currency to Currency to Unrealized Unrealized
be delivered be received appreciation depreciation
Feb. 29, 2000 22,029,212 21,956,755 $-- $602,720
U.S. Dollar European Monetary Unit
Total $-- $602,720
<PAGE>
<TABLE>
<CAPTION>
Investments in Securities
Growth Trends Portfolio
Jan. 31, 2000 (Unaudited)
(Percentages represent value of investments compared to net assets)
Common stocks (89.5%)
Issuer Shares Value(a)
Aerospace & defense (0.7%)
<S> <C> <C>
Honeywell Intl 3,100,000 $148,800,000
United Technologies 1,000,000 52,937,500
Total 201,737,500
Airlines (1.1%)
AMR 2,000,000(b) 107,625,000
Southwest Airlines 12,000,000 191,250,000
Total 298,875,000
Banks and savings & loans (2.4%)
State Street 2,500,000 200,468,750
Wells Fargo 11,500,000 460,000,000
Total 660,468,750
Beverages & tobacco (0.4%)
Coca-Cola 2,000,000 114,875,000
Communications equipment & services (4.6%)
Lucent Technologies 6,000,000 331,500,000
Motorola 4,200,000 574,350,000
Nokia Oyj ADR Cl A 1,000,000(c) 183,000,000
Tellabs 3,600,000(b) 194,400,000
Total 1,283,250,000
Computers & office equipment (19.7%)
America Online 6,600,000(b) 375,787,500
Automatic Data Processing 2,885,000 136,857,188
BMC Software 2,800,000(b,e) 106,050,000
Cisco Systems 14,000,000(b) 1,532,999,999
EMC 6,000,000(b) 639,000,000
Hewlett-Packard 1,500,000 162,375,000
Intl Business Machines 5,000,000 560,937,500
Microsoft 8,000,000(b) 783,000,000
Novell 8,000,000(b) 267,000,000
Oracle 3,300,000(b) 164,845,313
Solectron 6,287,200(b) 456,607,900
Sun Microsystems 2,000,000(b) 157,125,000
Yahoo! 700,000(b) 225,443,750
Total 5,568,029,150
Electronics (13.7%)
Agilent Technologies 1,100,000(b) 72,806,250
Applied Materials 2,000,000(b) 274,500,000
Corning 3,700,000 570,725,000
Intel 7,000,000 692,562,500
JDS Uniphase 6,000,000(b) 1,223,625,000
Teradyne 3,600,000(b) 233,100,000
Texas Instruments 7,200,000 776,700,000
Total 3,844,018,750
Energy (3.3%)
Chevron 1,000,000 83,562,500
Exxon Mobil 10,000,000 835,000,000
Total 918,562,500
Energy equipment & services (0.4%)
Halliburton 3,500,000 126,000,000
Financial services (5.5%)
Citigroup 11,600,000 666,275,000
Kansas City Southern Inds 2,000,000 138,375,000
MBNA 10,000,000 252,500,000
Morgan Stanley, Dean Witter, Discover & Co 7,200,000 477,000,000
Schwab (Charles) 250,000 9,015,625
Total 1,543,165,625
Health care (5.4%)
Bristol-Myers Squibb 7,300,000 481,800,000
Johnson & Johnson 1,000,000 86,062,500
Medtronic 7,200,000 329,400,000
Pfizer 6,200,000 225,525,000
Schering-Plough 4,300,000 189,200,000
Warner-Lambert 2,200,000 208,862,500
Total 1,520,850,000
Health care services (1.0%)
Cardinal Health 5,600,000 267,750,000
Household products (0.8%)
Colgate-Palmolive 4,016,000 237,948,000
Industrial equipment & services (0.5%)
Illinois Tool Works 2,400,000 140,400,000
Insurance (1.4%)
American Intl Group 3,800,000 395,675,000
Leisure time & entertainment (1.7%)
Time Warner 6,000,000 479,625,000
Media (5.3%)
CBS 9,400,000(b) 548,137,500
Clear Channel Communications 2,000,000(b) 172,750,000
Comcast Special Cl A 6,000,000 276,000,000
Gannett 6,900,000 479,550,000
Total 1,476,437,500
Multi-industry conglomerates (4.6%)
General Electric 7,500,000 1,000,312,500
Tyco Intl 7,000,000(c) 299,250,000
Total 1,299,562,500
Paper & packaging (0.5%)
Intl Paper 3,000,000 142,875,000
Restaurants & lodging (0.6%)
Marriott Intl Cl A 5,000,000 155,312,500
Retail (9.5%)
Costco Wholesale 9,000,000(b) 440,437,500
Home Depot 9,000,000 509,625,000
Safeway 8,000,000(b) 305,500,000
Target 6,200,000(b) 409,587,500
Wal-Mart Stores 18,200,000 996,450,000
Total 2,661,600,000
Transportation (0.2%)
United Parcel Service 728,800 43,363,600
Utilities -- gas (1.7%)
El Paso Energy 5,300,000 170,925,000
Enron 4,610,000 310,886,875
Total 481,811,875
Utilities -- telephone (4.5%)
AT&T 2,500,000 131,875,000
Bell Atlantic 2,600,000 161,037,500
BellSouth 3,400,000 160,012,500
Equant 600,000 61,185,774
MCI WorldCom 9,000,000(b) 413,437,500
U S WEST Communications Group 2,300,000 152,950,000
Vodafone AirTouch ADR 3,000,000(c,e) 168,000,000
Total 1,248,498,274
Total common stocks
(Cost: $13,456,149,384) $25,110,691,524
See accompanuing notes to investments in securities.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Short-term securities (10.6%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
U. S. government agencies (0.9%)
Federal Home Loan Bank Disc Nts
<S> <C> <C> <C>
03-08-00 5.64% $9,100,000 $9,046,034
04-14-00 5.76 20,100,000 19,855,405
Federal Home Loan Mtge Corp Disc Nts
02-08-00 5.61 19,500,000 19,473,695
02-11-00 5.57 18,800,000 18,763,810
02-17-00 5.63 10,000,000 9,969,762
03-07-00 5.63 4,800,000 4,772,400
03-21-00 5.85 11,000,000 10,911,389
03-29-00 5.73 50,000,000 49,523,111
Federal Natl Mtge Assn Disc Nts
02-24-00 5.59 18,900,000 18,818,016
02-24-00 5.60 20,400,000 20,311,510
02-24-00 5.65 3,700,000 3,683,950
03-02-00 5.63 14,600,000 14,526,524
03-02-00 5.64 21,500,000 21,391,800
03-02-00 5.67 14,200,000 14,128,537
03-09-00 5.85 11,000,000 10,931,904
Total 246,107,847
Commercial paper (9.5%)
Abbey Natl North America
03-16-00 5.98 20,400,000 20,250,192
04-10-00 5.90 15,400,000 15,222,729
AEGON Funding Corp
04-24-00 5.95 10,500,000(d) 10,356,185
Alcoa
02-17-00 5.65 26,300,000 26,230,078
02-18-00 5.94 20,000,000 19,934,934
04-25-00 5.96 20,000,000 19,722,333
American General Finance
02-03-00 5.96 10,000,000 9,995,033
02-18-00 6.02 5,000,000 4,985,000
ANZ (Delaware)
02-22-00 5.85 10,000,000 9,961,500
03-09-00 5.76 28,100,000 27,930,037
04-18-00 5.90 5,000,000 4,933,733
Associates Corp North America
02-11-00 6.03 7,600,000 7,586,020
AT&T
02-07-00 6.06 4,000,000 3,995,294
02-11-00 5.93 20,000,000 19,962,635
03-06-00 5.73 16,400,000 16,309,116
03-17-00 5.79 30,300,000 30,068,880
03-24-00 5.75 23,600,000 23,391,156
Bank One Canada
02-08-00 5.94 13,900,000 13,881,250
02-15-00 5.72 28,000,000 27,933,382
Barclays U.S. Funding
02-09-00 5.63 25,700,000 25,663,891
02-14-00 5.63 46,200,000 46,099,026
02-15-00 5.63 9,600,000 9,577,520
02-29-00 5.70 30,000,000 29,862,974
Bayer
03-22-00 5.74 31,600,000(d) 31,339,456
Bear Stearns
02-15-00 5.99 5,000,000 4,987,083
02-28-00 5.99 5,000,000 4,976,666
04-18-00 5.89 8,500,000 8,390,973
Bell Atlantic Finance Services
03-01-00 5.72 24,700,000 24,582,879
03-13-00 5.75 25,600,000 25,429,461
Bell Atlantic Network Funding
02-28-00 5.64 16,400,000 16,328,313
02-29-00 5.70 17,000,000 16,922,353
03-06-00 5.83 10,200,000 10,142,483
03-08-00 5.73 22,200,000 22,069,944
03-13-00 5.77 9,600,000 9,535,824
03-16-00 5.82 25,500,000 25,315,763
BellSouth Capital Funding
02-08-00 5.81 26,900,000(d) 26,863,713
02-23-00 6.06 21,400,000 21,312,452
BMW US Capital
02-14-00 6.01 19,100,000 19,055,432
02-16-00 6.08 24,200,000 24,134,819
CAFCO
02-02-00 6.02 27,100,000(d) 27,090,922
02-03-00 6.00 25,000,000(d) 24,987,231
03-17-00 5.79 30,000,000(d) 29,779,583
03-28-00 5.85 18,000,000(d) 17,834,700
04-03-00 5.84 23,600,000(d) 23,355,504
Ciesco LP
02-01-00 6.00 25,200,000(d) 25,195,800
02-14-00 6.06 11,700,000(d) 11,671,789
02-16-00 6.19 30,000,000 29,917,732
04-19-00 5.93 24,100,000 23,790,616
CIT Group Holdings
03-03-00 5.66 27,800,000 27,660,875
Coca-Cola
02-07-00 6.03 5,300,000 5,293,796
Corporate Receivables
02-01-00 6.00 30,000,000(d) 29,994,999
02-07-00 5.88 14,400,000(d) 14,383,003
02-23-00 6.13 14,200,000(d) 14,141,908
03-14-00 5.81 5,000,000(d) 4,965,540
04-04-00 5.89 28,000,000(d) 27,709,795
CXC
02-04-00 6.00 20,000,000(d) 19,986,160
03-14-00 5.81 5,000,000(d) 4,965,540
03-21-00 5.80 22,900,000(d) 22,717,118
03-22-00 5.80 24,700,000(d) 24,498,798
04-17-00 5.93 20,000,000(d) 19,746,756
Daimler/Chrysler
02-02-00 5.97 18,400,000 18,393,836
Delaware Funding
02-18-00 5.72 26,100,000(d) 26,025,614
03-08-00 5.76 25,700,000(d) 25,548,647
03-15-00 5.79 26,500,000(d) 26,313,763
03-20-00 5.83 28,000,000(d) 27,779,715
03-24-00 5.80 24,900,000 24,689,214
Deutsche Bank Financial
02-07-00 5.82 1,700,000 1,697,993
03-24-00 5.80 7,000,000 6,938,055
04-06-00 5.87 9,300,000 9,199,064
Dresdner US Finance
03-14-00 5.78 15,100,000 14,996,382
03-20-00 5.77 1,200,000 1,190,527
Duke Energy
02-25-00 6.08 4,300,000 4,281,934
Electronic Data Systems
02-28-00 5.91 34,000,000(d) 33,841,330
Emerson Electric
02-16-00 6.02 9,800,000 9,772,560
Falcon Asset
02-04-00 5.88 11,900,000(d) 11,891,765
03-09-00 5.79 25,900,000(d) 25,742,800
03-10-00 5.81 15,300,000(d) 15,204,362
03-13-00 5.99 22,000,000(d) 21,851,133
03-27-00 5.82 17,900,000(d) 17,739,337
Fleet Funding
02-10-00 5.86 20,000,000(d) 19,965,554
02-10-00 5.96 24,755,000(d) 24,712,363
03-14-00 5.79 23,800,000(d) 23,636,540
03-16-00 5.79 21,300,000(d) 21,146,906
03-21-00 5.80 26,958,000(d) 26,740,837
GMAC
02-25-00 5.67 37,500,000 37,352,860
02-25-00 5.67 9,600,000 9,562,332
02-28-00 5.66 7,500,000 7,467,099
Goldman Sachs Group
02-03-00 5.96 23,300,000 23,288,099
02-10-00 5.99 20,000,000 19,966,232
GTE Funding
02-15-00 6.02 18,200,000 18,152,981
02-22-00 6.00 9,050,000 9,015,158
02-24-00 6.01 17,500,000 17,424,089
Heinz (HJ)
02-23-00 5.65 21,000,000 20,924,464
02-28-00 5.65 17,600,000 17,522,931
Intl Lease Finance
02-11-00 5.81 7,100,000 7,086,333
Merrill Lynch
02-11-00 5.94 20,900,000 20,859,768
03-01-00 5.73 15,600,000 15,525,900
Morgan Stanley, Dean Witter, Discover & Co
03-23-00 5.76 25,300,000 25,083,823
03-27-00 5.76 28,400,000 28,142,883
03-28-00 5.78 16,200,000 16,050,717
Natl Australia Finance (Delaware)
02-01-00 5.94 5,000,000 4,999,175
02-02-00 5.95 20,000,000(d) 19,993,389
02-04-00 5.94 10,000,000 9,993,400
02-09-00 6.01 19,600,000 19,570,599
Natl Rural Utilities
03-13-00 5.80 8,400,000 8,343,160
03-23-00 6.01 10,300,000 10,211,991
03-29-00 6.06 3,700,000 3,664,710
Northern States Power
02-09-00 5.87 8,400,000 8,387,190
Pacific Gas & Electric
02-10-00 5.92 20,750,000 20,714,262
02-24-00 5.77 7,600,000 7,570,867
Pfizer
02-02-00 6.00 5,000,000(d) 4,998,333
02-11-00 6.11 23,800,000(d) 23,755,638
Preferred Receivables
02-22-00 5.70 26,000,000(d) 25,909,750
03-03-00 5.77 27,800,000(d) 27,658,157
03-08-00 5.77 23,600,000(d) 23,460,773
03-10-00 5.79 22,600,000(d) 22,459,220
03-15-00 5.79 26,400,000(d) 26,213,496
Procter & Gamble
03-02-00 5.71 15,800,000 15,722,720
03-15-00 5.77 16,100,000 15,987,246
Salomon Smith Barney
02-18-00 5.94 14,300,000 14,253,477
02-22-00 5.97 5,000,000 4,980,750
SBC Communications
02-28-00 5.73 13,200,000(d) 13,141,480
SBC Communications Capital
02-08-00 5.84 10,000,000 9,987,044
Sheffield Receivables
02-04-00 6.01 16,100,000(d) 16,088,896
02-07-00 5.97 25,000,000(d) 24,970,492
02-09-00 5.94 23,700,000(d) 23,663,856
02-22-00 5.75 28,400,000(d) 28,300,550
03-22-00 5.85 24,500,000(d) 24,298,692
Societe Generale North America
04-14-00 5.87 22,500,000 22,226,200
Sysco
02-07-00 5.86 16,900,000(d) 16,880,052
Toyota Motor Credit
02-07-00 6.05 10,000,000 9,988,255
UBS Finance (Delaware)
02-08-00 5.66 22,600,000 22,571,622
03-10-00 5.76 15,100,000 15,002,517
Variable Funding Capital
02-17-00 5.72 22,600,000(d) 22,539,167
03-07-00 5.78 23,900,000(d) 23,762,575
03-07-00 5.80 11,800,000(d) 11,731,913
03-16-00 5.79 11,900,000(d) 11,812,612
04-06-00 5.90 25,000,000(d) 24,728,667
04-07-00 5.92 22,100,000(d) 21,856,507
Windmill Funding
02-03-00 5.98 17,200,000(d) 17,191,215
02-14-00 5.71 15,500,000(d) 15,465,640
02-25-00 5.72 25,000,000(d) 24,901,040
03-06-00 5.79 25,000,000(d) 24,860,000
03-10-00 5.80 19,900,000(d) 19,771,529
03-20-00 6.15 25,000,000 24,802,639
Total 2,657,483,708
Letters of credit (0.2%)
Bank of America-
AES Hawaii
02-25-00 5.67 30,000,000 29,882,289
03-24-00 5.79 16,100,000 15,957,526
04-13-00 5.89 15,000,000 14,819,933
Total 60,659,748
Total short-term securities
(Cost: $2,964,944,145) $2,964,251,303
Total investments in securities
(Cost: $16,421,093,529)(f) $28,074,942,827
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. As of Jan. 31, 2000, the
value of foreign securities represented 2.32% of net assets.
(d) Commercial paper sold within terms of a private placement memorandum, exempt
from registration under Section 4(2) of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "accredited investors."
This security has been determined to be liquid under guidelines established by
the board.
(e) Security is partially or fully on loan. See Note 4 to the financial
statements.
(f) At Jan. 31, 2000, the cost of securities for federal income tax purposes was
approximately $16,421,094,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $11,825,546,000
Unrealized depreciation (171,697,000)
------------
Net unrealized appreciation $11,653,849,000
<PAGE>
American Express(R) Funds
AXP New Dimensions Fund
200 AXP Finanacial Center
Minneapolis, MN 55747
TICKER SYMBOL
Calss A:INNDX Class B:INDBX Class Y:IDNYX
PRSRT STD AUTO
U.S. POSTAGE
PAID
SPENCER, IA
PERMIT NO. 85
S-6441 P (3/00)
Distributed by American Express Financial Advisors Inc. Member NASD. American
Express Company is separate from American Express Financial Advisors Inc. and is
not a broker-dealer.
AMERICAN EXPRESS
