Prospectus and Statement of Additional Information Supplement
November 14, 2002*



American Express Variable Portfolio Funds                                 Prospectus Form #         SAI Form #       (MM/YY Printed)
                                                                                              
                                                                            S-6466-99 V             S-6466-20 V            (10/02)
AXP(R) Variable Portfolio - Income Series, Inc.
   AXP Variable Portfolio - Bond Fund
   AXP Variable Portfolio - Extra Income Fund
   AXP Variable Portfolio - Federal Income Fund
   AXP Variable Portfolio - Global Bond Fund
AXP Variable Portfolio - Investment Series, Inc.
   AXP Variable Portfolio - Blue Chip Advantage Fund
   AXP Variable Portfolio - Capital Resource Fund
   AXP Variable Portfolio - Emerging Markets Fund
   AXP Variable Portfolio - Equity Select Fund
   AXP Variable Portfolio - Growth Fund
   AXP Variable Portfolio - International Fund
   AXP Variable Portfolio - New Dimensions Fund(R)
   AXP Variable Portfolio - S&P 500 Index Fund
   AXP Variable Portfolio - Small Cap Advantage Fund
   AXP Variable Portfolio - Stock Fund
   AXP Variable Portfolio - Strategy Aggressive Fund
AXP Variable Portfolio - Managed Series, Inc.
   AXP Variable Portfolio - Diversified Equity Income Fund
   AXP Variable Portfolio - Managed Fund
AXP Variable Portfolio - Money Market Series, Inc.
   AXP Variable Portfolio - Cash Management Fund
AXP Variable Portfolio - Partners Series, Inc.
   AXP Variable Portfolio - Partners Small Cap Value Fund


SHAREHOLDER MEETINGS
At the regular meetings of shareholders held on November 13, 2002, in addition
to electing Board members, shareholders approved the following proposals:

1. Voting Procedures. Shareholders of all funds approved a change from
share-based voting to dollar-based voting. Voting rights will be based on a
shareholder's total dollar interest in the fund, rather than on the number of
shares owned. As a result, voting power will be allocated in proportion to the
value of each shareholder's investment.

2. Approval of Subadvisory Agreements. Shareholders of all funds except Variable
Portfolio - Partners Small Cap Value approved a policy authorizing American
Express Financial Corporation (AEFC), the fund's investment adviser, subject to
Board approval, to retain and replace subadvisers, or to modify subadvisory
agreements, without shareholder approval. If there is a change in subadvisers,
within 90 days shareholders will receive an information statement that includes
all of the information that is included in a proxy statement.

3. Investment Management Services Agreement. Shareholders of certain funds
approved a proposal to either add or modify the performance incentive adjustment
(PIA) element of the investment management fee effective December 1, 2002. Under
a PIA, the management fee is calculated as shown in the prospectus. The fee is
then adjusted for performance. The fund's performance is compared to the
performance of a Lipper index of similar funds. The performance difference is
used to determine the adjustment rate, described below. If the fund's
performance is better than the index, the fee paid to AEFC will increase. If the
fund's performance is worse than the index, the fee paid to AEFC will decrease.
For those funds that are modifying the PIA, for a period of six months beginning
December 1, 2002, the adjustment will be calculated based on the lesser of the
amount due under the new adjustment or under the adjustment used prior to
December 1, 2002 as outlined in the Statement of Additional Information.







Performance Incentive Adjustment

Performance Difference                   Adjustment Rate
                                      
0.00%-0.50%                              0
0.50%-1.00%                              6 basis points (0.0006) times the Performance Difference over 0.50%
                                         (maximum of 3 basis points if a 1% Performance Difference)
1.00%-2.00%                              3 basis points, plus 3 basis points times the Performance Difference over 1.00%
                                         (maximum 6 basis points if a 2% Performance Difference)
2.00%-4.00%                              6 basis points, plus 2 basis points times the Performance Difference over 2.00%
                                         (maximum 10 basis points if a 4% Performance Difference)
4.00%-6.00%                              10 basis points, plus 1 basis point times the Performance Difference over 4.00%
                                         (maximum 12 basis points if a 6% Performance Difference)
6.00% or more                            12 basis points


Funds that approved this proposal were: Variable Portfolio - Blue Chip
Advantage, Variable Portfolio - Capital Resource, Variable Portfolio -
Diversified Equity Income, Variable Portfolio - Emerging Markets, Variable
Portfolio - Equity Select, Variable Portfolio - Growth, Variable Portfolio -
International, Variable Portfolio - Managed, Variable Portfolio - New
Dimensions, Variable Portfolio - Partners Small Cap Value, Variable Portfolio -
Small Cap Advantage, Variable Portfolio - Stock, Variable Portfolio - Strategy
Aggressive. For Variable Portfolio - Managed, the maximum adjustment is 8 basis
points.

In addition, shareholders of all funds approved a proposal that AEFC assume both
the role of investment manager, currently held by IDS Life Insurance Company,
and the role of investment adviser, currently held by AEFC. This will combine
all investment roles within one entity and one contract. The change will not
affect the management of the funds and will not change the fees paid by the
fund.

S-6466-28 C (11/02)

*Valid until next prospectus update

Destroy Oct. 30, 2003