Plan under Section 18f-3(d)
                                  March 9, 2000

Filed pursuant to Item 23(o) of Form N-1A

Separate Arrangements

Each  class  of  shares  will  represent  interests  in the  same  portfolio  of
investments of the Fund and be identical except those differences that relate to
(a) the impact of the disproportionate  payments made under the Rule 12b-1 plan;
(b) the impact of the  disproportionate  payments  made because of service fees;
(c) the  differences  in class  expenses  including  transfer agent fees and any
other  expense  determined  by the  board  to be a  class  expense;  and (d) the
difference in voting  rights on the 12b-1 plan,  exchange  privileges  and class
designations. The current classes of shares are as follows:

         Class A shares - 4.75% (fixed income) or 5.75% (equity) initial  sales
                          charge  waived or  reduced  for certain purchases.

         Class B shares - contingent  deferred sales charge ranging from 5% down
                          to 0% after six years.

         Class C shares - contingent  deferred sales charge of 1% on redemptions
                          of shares held for less than one year.

         Class Y shares - no sales charge.

Expense Allocation Procedures

American Express Financial Corporation, as the Fund's administrator,  on a daily
basis shall allocate the income, expenses, and realized and unrealized gains and
losses of the Fund on the basis of the relative percentage of net assets of each
class of  shares,  except  class  specific  expenses  for  service  fees,  12b-1
distribution  fees, and transfer agent fees which shall be paid directly by each
class as follows:

         Service fee:

                  Class Y:          10 basis points

         12b-1 fee:

                  Class A:            25 basis points
                  Class B:          100 basis points
                  Class C:          100 basis points



         Transfer agent fee:

                  Class A: an additional $2 for each shareholder account
                  Class B: an additional $3 for each shareholder account
                  Class C: an additional $2.50 for each shareholder account

Should an expense of a class be waived or reimbursed, American Express Financial
Corporation  first  will  determine  that the waiver or  reimbursement  will not
result in another  class  subsidizing  the class,  is fair and  equitable to all
classes and does not operate to the  detriment  of another  class and then shall
monitor the  implementation  and operation to assure the waiver or reimbursement
operates consistent with the determination.  The board shall monitor the actions
of American Express Financial Corporation.



Exchange Privileges

Shares of a class may be exchanged  for shares of the same class of another fund
that is part of the American Express Funds.

Conversion Privileges

Class B shares  including  a  proportionate  amount of shares  acquired  through
reinvestment of distributions  shall convert in the ninth year of ownership into
Class A shares at relative net asset values without the imposition of any fee.