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SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
1. Investment Company Act File Number: Date examination completed:
811-1714 August 23, 1999
2. State identification Number:
AL AK AZ AR CA CO
CT DE DC FL GA HI
ID IL IN IA KS KY
LA ME MD MA MI MN
MS MO MT NE NV NH
NJ NM NY NC ND OH
OK OR PA RI SC SD
TN TX UT VT VA WA
WV WI WY PUERTO RICO
Other (specify):
3. Exact name of investment company as specified in registration statement:
AXP Progressive Fund, Inc.
4. Name under which business is conducted, if different from above:
5. Address of principal place of business (number,street,city,state,zip code):
IDS Tower 10, Minneapolis, MN 55440
<PAGE>
INSTRUCTIONS
This Form must be completed by investment companies that have custody of
securities or similar investments.
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with
Rule 17f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable state law. File the original
and one copy with the Securities and Exchange Commission's principal office in
Washington, D. C., one copy with the regional office for the region in which the
investment company's principal business operations are conducted, and one copy
with the appropriate state administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
Note: The estimated average burden hours are made solely for purposes of the
Paperwork Reduction Act, and are not derived from a comprehensive or even a
representative survey or study of the costs of SEC rules and forms. Direct any
comments concerning the accuracy of the estimated average burden hours for
compliance with SEC rules and forms to Kenneth A. Fogash. Duputy Executive
Director, U.S. Securities and Exchange Commission, 450 Fifth Street, N.W.,
Washington, D.C. 20549 and Gary Waxman, Clearance Officer, Office of Management
and Budget, Room 3208 New Executive Office Building, Washington, D.C. 20503.
<PAGE>
Independent Auditors' Report
To the Board of Directors of
AXP Progressive Fund, Inc.:
We have examined management's assertion, included in its representation letter,
that AXP Progressive Fund, Inc. (the Fund) complied with the provisions of
subsections (b) and (c) of Rule 17f-2 under the Investment Company Act of 1940
as of May 31, 1999 and during the period September 30, 1998 (the date of our
last examination) through May 31, 1999. Management is responsible for the Fund's
compliance with those provisions. Our responsibility is to express an opinion on
management's assertion about the Fund's compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of May 31, 1999 and the period from September 30, 1998 through May
31, 1999, with respect to securities transactions:
o Count and inspection of all securities located in the vault, if any, of
American Express Trust Company, the Custodian;
o Confirmation of all securities, if any, held by institutions in book entry
form (Norwest Bank Minnesota, N.A., Morgan Stanley Trust Company, State
Street Bank and Trust Company, and The Depository Trust Company);
o Confirmation or examination of underlying documentation of all securities
purchased but not received, hypothecated, pledged, placed in escrow, or out
for transfer with brokers, pledgees and/or transfer agents;
o Reconciliation of all such securities to the books and records of the Fund
and the Custodian; and
o Test of selected security transactions since the date of our last report.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Fund's compliance with
the specified requirements.
In our opinion, management's assertion that AXP Progressive Fund, Inc. was in
compliance with the above mentioned provisions of Rule 17f-2 of the Investment
Company Act of 1940 as of May 31, 1999 and for the period from September 30,
1998 through May 31, 1999 is fairly stated in all material respects.
This report is intended solely for the information and use of management of AXP
Progressive Fund, Inc. and the Securities and Exchange Commission and should not
be used for any other purpose and is not intended to be and should not be used
by anyone other than these specified parties.
/s/ KPMG LLP
KPMG LLP
Minneapolis, MN
August 23, 1998
