N-Q 1 growth-nq.txt AXP GROWTH SERIES, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-2111 ------------ AXP GROWTH SERIES, INC. -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 50606 AXP Financial Center, Minneapolis, Minnesota 55474 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810, Minneapolis, MN 55402-3268 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (612) 330-9283 ----------------- Date of fiscal year end: 7/31 -------------- Date of reporting period: 10/31 -------------- AXP(R) GROWTH FUND A FEEDER FUND INVESTING IN GROWTH PORTFOLIO PORTFOLIO HOLDINGS AT OCT. 31, 2004 Investments in Securities Growth Portfolio Oct. 31, 2004 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (94.5%) Issuer Shares Value(a) Aerospace & defense (1.7%) Lockheed Martin 936,000 $51,564,240 Banks and savings & loans (2.1%) Commerce Bancorp 421,000 24,940,040 Investors Financial Services 647,100 24,906,879 US Bancorp 492,500 14,090,425 Total 63,937,344 Beverages & tobacco (3.2%) Altria Group 581,000 28,155,260 Coca-Cola 382,500 15,552,450 PepsiCo 1,079,600 53,526,568 Total 97,234,278 Cable (10.1%) Comcast Special Cl A 524,400(b) 15,228,576 Cox Communications Cl A 184,000(b) 6,336,960 NTL 3,854,996(b) 256,395,784 Telewest Global 2,226,050(b,c) 27,380,415 Total 305,341,735 Cellular telecommunications (11.2%) Nextel Communications Cl A 5,586,700(b) 147,991,682 Telesystem Intl Wireless 3,555,200(b,c) 38,929,440 Vodafone Group ADR 3,450,000(c) 88,975,500 Western Wireless Cl A 2,125,800(b) 61,945,812 Total 337,842,434 Computer hardware (3.0%) Cisco Systems 2,430,000(b) 46,680,300 Dell 1,116,500(b) 39,144,490 Gateway 1,146,750(b) 6,708,488 Total 92,533,278 Computer software & services (2.3%) Affiliated Computer Services Cl A 164,900(b) 8,995,295 Microsoft 1,646,800 46,093,932 Oracle 619,300(b) 7,840,338 VERITAS Software 386,700(b) 8,460,996 Total 71,390,561 Electronics (5.3%) Analog Devices 439,700 17,702,322 ASML Holding 342,800(b,c) 4,884,900 Broadcom Cl A 434,200(b) 11,745,110 Intel 2,399,500 53,412,870 Linear Technology 387,400 14,674,712 Micron Technology 1,102,500(b) 13,428,450 Novellus Systems 211,000(b) 5,467,010 Semtech 304,000(b) 6,347,520 Taiwan Semiconductor Manufacturing ADR 730,500(c) 5,529,885 Texas Instruments 1,161,100 28,388,895 Total 161,581,674 Energy (1.9%) ChevronTexaco 515,000 27,325,900 ConocoPhillips 304,000 25,630,240 PetroKazakhstan Cl A 135,500(c) 4,999,950 Total 57,956,090 Energy equipment & services (2.2%) Halliburton 1,006,000 37,262,240 Schlumberger 282,000 17,749,080 Transocean 187,300(b) 6,602,325 Weatherford Intl 79,600(b) 4,159,896 Total 65,773,541 Finance companies (0.8%) Citigroup 558,000 24,758,460 Financial services (3.1%) Capital One Financial 139,000 10,252,640 Countrywide Financial 228,500 7,296,005 Fannie Mae 644,900 45,239,735 Freddie Mac 477,100 31,774,860 Total 94,563,240 Food (1.1%) HJ Heinz 301,700 10,966,795 Kellogg 555,500 23,886,500 Total 34,853,295 Health care products (17.9%) Amgen 210,500(b) 11,956,400 Baxter Intl 1,280,800 39,397,408 Biogen Idec 981,000(b) 57,054,960 Bristol-Myers Squibb 713,800 16,724,334 Elan ADR 860,300(b,c,d) 22,195,740 Genentech 321,250(b) 14,626,513 GlaxoSmithKline ADR 247,500(c) 10,494,000 Guidant 58,000 3,863,960 Johnson & Johnson 1,638,500 95,655,630 Medco Health Solutions 1,417,500(b) 48,067,425 Medtronic 373,000 19,064,030 Merck & Co 1,063,100 33,285,661 Novartis ADR 453,500(c) 21,772,535 OSI Pharmaceuticals 335,500(b) 21,800,790 Pfizer 3,558,400 103,015,679 Schering-Plough 1,280,200 23,184,422 Total 542,159,487 Health care services (5.3%) Aetna 307,550 29,217,250 AmerisourceBergen 200,100 11,013,504 Cardinal Health 107,200 5,011,600 Fisher Scientific Intl 319,750(b,d) 18,340,860 HCA 487,200 17,894,856 Healthsouth 7,235,500(b,d) 39,578,185 Hospira 331,600(b) 10,581,356 Lincare Holdings 33,500(b) 1,231,460 Magellan Health Services 270,700(b) 10,124,180 McKesson 360,000 9,597,600 Tenet Healthcare 832,300(b) 8,922,256 Total 161,513,107 Household products (3.8%) Colgate-Palmolive 332,000 14,813,840 Gillette 1,408,000 58,403,840 Procter & Gamble 849,000 43,451,820 Total 116,669,500 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 1 --- AXP GROWTH FUND --- PORTFOLIO HOLDINGS AT OCT. 31, 2004 Common stocks (continued) Issuer Shares Value(a) Insurance (3.4%) ACE 817,500(c) $31,114,050 Allstate 230,500 11,084,745 American Intl Group 450,000 27,319,500 Chubb 243,000 17,527,590 Prudential Financial 191,600 8,903,652 Willis Group Holdings 229,400(c) 8,246,930 Total 104,196,467 Leisure time & entertainment (0.5%) Blockbuster Cl A 22,114 150,376 Blockbuster Cl B 22,114(b) 143,299 Viacom Cl B 446,912 16,307,819 Total 16,601,494 Media (0.9%) Walt Disney 1,118,800 28,216,136 Metals (0.2%) Apex Silver Mines 155,000(b,c) 2,907,800 Royal Gold 216,000(d) 3,458,160 Total 6,365,960 Precious metals (3.5%) Barrick Gold 309,000(c,d) 6,955,590 Coeur d'Alene Mines 5,142,100(b,d) 25,453,395 Glamis Gold 169,500(b,c) 3,361,185 Newmont Mining 1,282,000 60,920,640 Stillwater Mining 809,500(b) 10,005,420 Total 106,696,230 Retail -- general (3.4%) Dollar General 320,000 6,160,000 Home Depot 318,400 13,079,872 Target 324,500 16,231,490 Wal-Mart Stores 1,241,500 66,941,680 Total 102,413,042 Retail -- grocery (0.1%) Safeway 141,500(b) 2,580,960 Telecom equipment & services (6.7%) CIENA 5,234,500(b) 12,929,215 Hutchison Telecommunications Intl ADR 1,092,700(b,c) 11,036,270 Indonesian Satellite 12,009,500(c) 6,249,437 Motorola 2,735,700 47,218,182 MTN Group 1,615,500(c) 8,828,014 Nextel Partners Cl A 2,635,700(b) 44,385,188 Nokia ADR 4,600,500(c) 70,939,710 Total 201,586,016 Utilities -- natural gas (--%) Kinder Morgan Management LLC --(b) 13 Utilities -- telephone (0.8%) Citizens Communications 488,500 6,545,900 Verizon Communications 486,300 19,014,330 Total 25,560,230 Total common stocks (Cost: $2,662,751,485) $2,873,888,812 Options purchased (0.4%) Issuer Contracts Exercise Expiration Value(a) price date Puts Russell 2000 IShares 25,425 $105 Nov. 2004 $572,063 Russell 2000 IShares 32,800 110 Nov. 2004 1,968,000 S&P 500 Index 2,440 1,080 Nov. 2004 988,200 S&P 500 Index 2,115 1,075 June 2005 7,233,300 Total options purchased (Cost: $31,835,121) $10,761,563 Short-term securities (5.5%)(e) Issuer Effective Amount Value(a) yield payable at maturity U.S. government agency (3.6%) Federal Natl Mtge Assn Disc Nts 11-17-04 1.77% $3,200,000 $3,197,011 11-24-04 1.83 16,100,000 16,078,721 12-09-04 1.85 15,000,000 14,968,396 12-13-04 1.85 8,600,000 8,580,123 12-14-04 1.83 7,100,000 7,083,402 01-05-05 1.86 61,200,000 60,985,617 Total 110,893,270 Commercial paper (1.9%) Bear Stearns Companies 12-15-04 1.99 6,100,000 6,084,232 Credit Suisse First Boston NY 11-22-04 1.77 8,700,000 8,689,731 Greyhawk Funding LLC 11-03-04 1.79 9,600,000 9,597,613 Jupiter Securitization 11-05-04 1.79 900,000 899,687 Kitty Hawk Funding Corp 12-13-04 1.94 18,900,000 18,854,167 Pacific Life Insurance 11-01-04 1.85 13,700,000 13,697,888 Total 57,823,318 Total short-term securities (Cost: $168,707,421) $168,716,588 Total investments in securities (Cost: $2,863,294,027)(f) $3,053,366,963 Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Annual Report dated July 31, 2004. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. At Oct. 31, 2004, the value of foreign securities represented 12.3% of net assets. (d) At Oct. 31, 2004, security was partially or fully on loan. (e) Cash collateral received from security lending activity is invested in short-term securities and represents 1.6% of net assets. 3.9% of the net assets is the Portfolio's cash equivalent position. (f) At Oct. 31, 2004, the cost of securities for federal income tax purposes was approximately $2,863,294,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $274,055,000 Unrealized depreciation (83,982,000) ----------- Net unrealized appreciation $190,073,000 ------------ How to find information about the Fund's portfolio holdings (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii) The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at www.americanexpress.com/funds. -------------------------------------------------------------------------------- 2 --- AXP GROWTH FUND --- PORTFOLIO HOLDINGS AT OCT. 31, 2004 S-6455-80 A (12/04) PORTFOLIO HOLDINGS FOR AXP(R) LARGE CAP EQUITY FUND AT OCT. 31, 2004 Investments in Securities AXP Large Cap Equity Fund Oct. 31, 2004 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (96.0%) Issuer Shares Value(a) Aerospace & defense (1.7%) Empresa Brasileira de Aeronautica ADR 409,000(c) $10,854,860 Lockheed Martin 162,525 8,953,502 Northrop Grumman 222,728 11,526,174 Total 31,334,536 Banks and savings & loans (6.1%) Bank of America 835,400 37,417,565 Commerce Bancorp 172,400 10,212,976 Investors Financial Services 270,300 10,403,847 State Street 40,200 1,811,010 US Bancorp 405,700 11,607,077 Wachovia 283,700 13,960,877 Washington Mutual 114,900 4,447,779 Wells Fargo & Co 297,600 17,772,672 Total 107,633,803 Beverages & tobacco (4.2%) Altria Group 232,600 11,271,796 Coca-Cola 227,050 9,231,853 Coca-Cola Enterprises 660,100 13,802,691 PepsiCo 816,524 40,483,260 Total 74,789,600 Broker dealers (2.2%) Franklin Resources 49,000 2,970,380 JPMorgan Chase & Co 686,600 26,502,760 Morgan Stanley 184,600 9,431,214 Total 38,904,354 Cable (1.9%) Comcast Special Cl A 312,700(b) 9,080,808 NTL 314,369(b) 20,908,682 Telewest Global 380,300(b,c) 4,677,690 Total 34,667,180 Cellular telecommunications (3.7%) Nextel Communications Cl A 1,016,000(b) 26,913,840 Telesystem Intl Wireless 313,200(b,c) 3,429,540 Vodafone Group ADR 983,400(c) 25,361,886 Western Wireless Cl A 391,600(b) 11,411,224 Total 67,116,490 Chemicals (0.9%) Dow Chemical 373,545 16,787,112 Computer hardware (2.8%) Cisco Systems 867,900(b) 16,672,359 Dell 654,100(b) 22,932,746 EMC 702,700(b) 9,043,749 Gateway 355,750(b) 2,081,138 Total 50,729,992 Computer software & services (4.0%) Affiliated Computer Services Cl A 263,900(b) 14,395,745 Citrix Systems 178,500(b) 4,307,205 Juniper Networks 220,800(b) 5,875,488 Macromedia 122,400(b) 3,321,936 Microsoft 647,300 18,117,927 Oracle 1,405,400(b) 17,792,364 Paychex 178,200 5,843,891 VERITAS Software 122,100(b) 2,671,548 Total 72,326,104 Electronics (3.3%) Analog Devices 93,800 3,776,388 ASML Holding 191,100(b,c) 2,723,175 Broadcom Cl A 321,600(b) 8,699,280 Intel 703,900 15,668,814 Linear Technology 96,900 3,670,572 Micron Technology 776,200(b) 9,454,116 Texas Instruments 616,300 15,068,535 Total 59,060,880 Energy (6.0%) ChevronTexaco 553,100 29,347,486 ConocoPhillips 148,773 12,543,052 Exxon Mobil 1,301,746 64,071,938 Total 105,962,476 Finance companies (4.3%) Citigroup 1,741,508 77,270,710 Financial services (3.8%) Capital One Financial 146,800 10,827,968 Countrywide Financial 560,996 17,912,602 Fannie Mae 573,697 40,244,845 Total 68,985,415 Health care products (11.0%) Baxter Intl 258,100 7,939,156 Biogen Idec 210,400(b) 12,236,864 Bristol-Myers Squibb 354,300 8,301,249 Elan ADR 625,100(b,c) 16,127,580 Genentech 289,924(b) 13,200,240 Guidant 124,800 8,314,176 Johnson & Johnson 289,550 16,903,929 Medco Health Solutions 742,200(b) 25,168,002 Merck & Co 536,300 16,791,553 Momenta Pharmaceuticals 144,950(b) 1,187,141 Novartis ADR 708,650(c) 34,022,286 OSI Pharmaceuticals 65,200(b) 4,236,696 Pfizer 1,091,300 31,593,134 Total 196,022,006 Health care services (4.8%) Aetna 90,900 8,635,500 Cardinal Health 137,200 6,414,100 Caremark Rx 257,800(b) 7,726,266 Fisher Scientific Intl 143,800(b) 8,248,368 HCA 527,200 19,364,056 Healthsouth 795,000(b) 4,348,650 Hospira 223,100(b) 7,119,121 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 1 -- AXP LARGE CAP EQUITY FUND --- PORTFOLIO HOLDINGS AT OCT. 31, 2004 Common stocks (continued) Issuer Shares Value(a) Health care services (cont.) Lincare Holdings 24,100(b) $885,916 Magellan Health Services 145,500(b) 5,441,700 McKesson 325,066 8,666,260 Tenet Healthcare 835,000(b) 8,951,200 Total 85,801,137 Household products (3.7%) Colgate-Palmolive 613,700 27,383,294 Gillette 642,900 26,667,492 Procter & Gamble 254,208 13,010,365 Total 67,061,151 Insurance (4.9%) ACE 483,447(c) 18,399,993 Allstate 149,200 7,175,028 American Intl Group 501,094 30,421,417 Chubb 240,900 17,376,117 Prudential Financial 96,300 4,475,061 Willis Group Holdings 246,300(c) 8,854,485 Total 86,702,101 Investment companies (1.8%) iShares Dow Jones U.S. Utilities Sector Index Fund 74,100 4,780,932 Utilities Select Sector SPDR Fund 1,066,800 28,024,836 Total 32,805,768 Leisure time & entertainment (1.5%) Blockbuster Cl A 92,396 628,293 Blockbuster Cl B 92,396 598,726 Mattel 302,700 5,300,277 Multimedia Games 244,600(b) 3,228,720 Viacom Cl B 386,418 14,100,393 WMS Inds 103,700(b) 3,033,225 Total 26,889,634 Lodging & gaming (0.2%) GTECH Holdings 185,300 4,386,051 Machinery (0.8%) Caterpillar 113,556 9,145,800 Ingersoll-Rand Cl A 76,600(c) 5,242,504 Total 14,388,304 Media (3.8%) Cendant 2,902,335 59,759,078 Walt Disney 364,600 9,195,212 Total 68,954,290 Metals (0.3%) Phelps Dodge 56,000 4,902,240 Multi-industry (3.4%) General Electric 1,437,556 49,049,411 Tyco Intl 406,600(c) 12,665,590 Total 61,715,001 Paper & packaging (0.4%) Weyerhaeuser 104,200 6,527,088 Precious metals (0.3%) Freeport-McMoRan Copper & Gold Cl B 148,741 5,387,399 Restaurants (0.3%) Domino's Pizza 312,600(b) 5,126,640 Retail -- drugstores (0.3%) CVS 106,000 4,606,760 Retail -- general (4.3%) Dollar General 393,000 7,565,250 Family Dollar Stores 169,900 5,020,545 Home Depot 116,300 4,777,604 Lowe's Companies 83,200 4,682,496 Target 213,100 10,659,262 Wal-Mart Stores 823,100 44,381,552 Total 77,086,709 Telecom equipment & services (3.9%) CIENA 1,450,900(b) 3,583,723 Hutchison Telecommunications Intl ADR 502,500(b,c) 5,075,250 Indonesian Satellite 3,579,500(c) 1,862,680 Motorola 930,900 16,067,334 Nextel Partners Cl A 285,000(b) 4,799,400 Nokia ADR 2,503,300(c) 38,600,886 Total 69,989,273 Utilities -- electric (2.8%) American Electric Power 113,400 3,734,262 Entergy 218,300 14,268,088 Exelon 239,400 9,485,028 FPL Group 53,600 3,693,040 PPL 147,400 7,664,800 Southern Co 348,900 11,021,751 Total 49,866,969 Utilities -- telephone (2.6%) AT&T 591,000 10,112,010 Citizens Communications 683,900 9,164,260 Verizon Communications 699,500 27,350,450 Total 46,626,720 Total common stocks (Cost: $1,705,340,335) $1,720,413,893 Short-term securities (3.9%) Issuer Effective Amount Value(a) yield payable at maturity U.S. government agencies (2.4%) Federal Home Loan Bank Disc Nt 12-17-04 1.92% $11,700,000 $11,669,572 Federal Home Loan Mtge Disc Nt 01-04-05 1.86 7,000,000 6,975,857 Federal Natl Mtge Assn Disc Nts 11-03-04 1.68 11,500,000 11,497,317 12-09-04 1.85 2,900,000 2,893,890 12-20-04 1.88 7,900,000 7,878,661 12-22-04 1.79 2,300,000 2,293,833 Total 43,209,130 Commercial paper (1.5%) CRC Funding LLC 11-01-04 1.86 5,800,000 5,799,101 Delaware Funding LLC 11-23-04 1.85 6,400,000 6,391,777 Falcon Asset Securitization 11-17-04 1.85 4,200,000 4,195,899 Greyhawk Funding LLC 11-23-04 1.82 5,000,000 4,993,681 Morgan Stanley 12-07-04 1.95 5,000,000 4,989,438 Total 26,369,896 Total short-term securities (Cost: $69,581,362) $69,579,026 Total investments in securities (Cost: $1,774,921,697)(d) $1,789,992,919 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 2 -- AXP LARGE CAP EQUITY FUND --- PORTFOLIO HOLDINGS AT OCT. 31, 2004 Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Annual Report dated July 31, 2004. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. At Oct. 31, 2004, the value of foreign securities represented 10.5% of net assets. (d) At Oct. 31, 2004, the cost of securities for federal income tax purposes was approximately $1,774,922,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 78,469,000 Unrealized depreciation (63,398,000) ----------- Net unrealized appreciation $ 15,071,000 ------------ How to find information about the Fund's portfolio holdings (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii) The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at www.americanexpress.com/funds. -------------------------------------------------------------------------------- 3 -- AXP LARGE CAP EQUITY FUND --- PORTFOLIO HOLDINGS AT OCT. 31, 2004 S-6244-80 A (12/04) PORTFOLIO HOLDINGS FOR AXP(R) LARGE CAP VALUE FUND AT OCT. 31, 2004 Investments in Securities AXP Large Cap Value Fund Oct. 31, 2004 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (91.9%) Issuer Shares Value(a) Aerospace & defense (3.2%) Boeing 12,855 $641,465 Empresa Brasileira de Aeronautica ADR 23,832(c) 632,501 General Dynamics 4,779 488,031 Lockheed Martin 12,190 671,547 Northrop Grumman 19,532 1,010,781 United Technologies 8,385 778,296 Total 4,222,621 Automotive & related (0.4%) General Motors 12,184 469,693 Banks and savings & loans (9.9%) Bank of America 91,820 4,112,619 Bank of New York 21,001 681,692 Commerce Bancorp 4,700 278,428 Investors Financial Services 11,925 458,993 PNC Financial Services Group 10,884 569,233 Regions Financial 18,837 660,802 SouthTrust 5,900 257,063 State Street 9,950 448,248 US Bancorp 52,950 1,514,900 Wachovia 21,687 1,067,217 Washington Mutual 30,301 1,172,952 Wells Fargo & Co 29,563 1,765,502 Total 12,987,649 Beverages & tobacco (3.7%) Altria Group 44,184 2,141,157 Coca-Cola 19,165 779,249 Coca-Cola Enterprises 30,600 639,846 PepsiCo 24,704 1,224,824 Total 4,785,076 Broker dealers (5.1%) Franklin Resources 4,393 266,304 JPMorgan Chase & Co 78,924 3,046,466 Merrill Lynch & Co 29,719 1,603,043 Morgan Stanley 33,756 1,724,594 Total 6,640,407 Building materials & construction (0.7%) American Standard Companies 9,545(b) 349,061 Masco 14,684 503,073 Total 852,134 Cable (2.0%) Comcast Cl A 18,255(b) 538,523 Comcast Special Cl A 22,300(b) 647,592 EchoStar Communications Cl A 15,169(b) 479,644 NTL 14,187(b) 943,577 Total 2,609,336 Cellular telecommunications (1.0%) Nextel Communications Cl A 7,100(b) 188,079 Vodafone Group ADR 42,438(c) 1,094,476 Total 1,282,555 Chemicals (2.3%) Dow Chemical 37,384 1,680,037 Eastman Chemical 7,589 360,250 Lyondell Chemical 28,952 665,317 RPM Intl 14,700 259,161 Total 2,964,765 Computer hardware (1.6%) Cisco Systems 13,955(b) 268,076 Dell 18,450(b) 646,857 EMC 12,200(b) 157,014 Hewlett-Packard 56,683 1,057,704 Total 2,129,651 Computer software & services (2.2%) Affiliated Computer Services Cl A 12,909(b) 704,186 Cadence Design Systems 28,700(b) 357,028 Intl Business Machines 11,255 1,010,136 Microsoft 22,598 632,518 VERITAS Software 6,900(b) 150,972 Total 2,854,840 Electronics (0.8%) Cypress Semiconductor 24,500(b) 257,985 Intel 23,650 526,449 Texas Instruments 11,141 272,397 Total 1,056,831 Energy (8.7%) Anadarko Petroleum 15,719 1,060,247 BP ADR 17,064(c) 993,978 ChevronTexaco 41,464 2,200,080 ConocoPhillips 29,340 2,473,655 Devon Energy 6,397 473,186 Exxon Mobil 67,896 3,341,841 Newfield Exploration 9,982(b) 580,952 Royal Dutch Petroleum 5,242(c) 284,326 Total 11,408,265 Energy equipment & services (1.7%) Cooper Cameron 12,345(b) 596,881 Schlumberger 4,131 260,005 Transocean 13,077(b) 460,964 Weatherford Intl 16,071(b) 839,871 Total 2,157,721 Finance companies (3.9%) Citigroup 113,391 5,031,159 Financial services (4.7%) Calamos Asset Management Cl A 7,900(b) 154,050 Capital One Financial 11,233 828,546 Countrywide Financial 40,760 1,301,467 Fannie Mae 23,699 1,662,485 Freddie Mac 26,400 1,758,240 MBNA 15,235 390,473 Total 6,095,261 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 1 -- AXP LARGE CAP VALUE FUND -- PORTFOLIO HOLDINGS AT OCT. 31, 2004 Common stocks (continued) Issuer Shares Value(a) Food (1.4%) General Mills 12,249 $542,018 Hain Celestial Group 11,400(b) 184,452 HJ Heinz 21,630 786,251 Sara Lee 14,141 329,202 Total 1,841,923 Furniture & appliances (0.1%) Leggett & Platt 5,188 145,938 Health care products (4.5%) Baxter Intl 11,002 338,422 Biogen Idec 8,297(b) 482,554 Bristol-Myers Squibb 14,106 330,504 GlaxoSmithKline ADR 6,644(c) 281,706 Guidant 2,220 147,896 Johnson & Johnson 9,675 564,827 Medco Health Solutions 12,610(b) 427,605 Merck & Co 35,174 1,101,297 Novartis ADR 8,791(c) 422,056 Pfizer 42,453 1,229,013 Schering-Plough 16,823 304,665 Wyeth 6,989 277,114 Total 5,907,659 Health care services (2.2%) HCA 24,537 901,244 Hospira 9,843(b) 314,090 Lincare Holdings 21,263(b) 781,628 McKesson 9,144 243,779 Select Medical 9,175 157,718 Tenet Healthcare 44,500(b) 477,040 Total 2,875,499 Household products (1.6%) Colgate-Palmolive 31,250 1,394,375 Gillette 6,300 261,324 Procter & Gamble 8,628 441,581 Total 2,097,280 Insurance (6.6%) ACE 31,119(c) 1,184,389 Allstate 24,261 1,166,711 American Intl Group 33,743 2,048,539 Assurant 5,089 137,301 Chubb 14,717 1,061,537 CIGNA 4,179 265,199 Endurance Specialty Holdings 19,300(c) 639,795 First American 10,268 320,259 Hartford Financial Services Group 4,322 252,751 Montpelier Re Holdings 5,831(c) 217,321 Prudential Financial 12,200 566,934 Willis Group Holdings 18,557(c) 667,124 Total 8,527,860 Leisure time & entertainment (1.6%) Blockbuster Cl A 1,792 12,186 Blockbuster Cl B 1,792(b) 11,612 Mattel 35,096 614,531 Multimedia Games 10,600(b) 139,920 Viacom Cl B 36,708 1,339,475 Total 2,117,724 Machinery (0.7%) AGCO 6,440(b) 125,065 Caterpillar 3,809 306,777 Illinois Tool Works 2,525 233,007 Ingersoll-Rand Cl A 2,905(c) 198,818 Total 863,667 Media (4.7%) Cendant 48,500 998,615 EW Scripps Cl A 6,800 324,496 IAC/InterActiveCorp 9,982(b) 215,811 Liberty Media Cl A 116,848(b) 1,042,284 Liberty Media Intl Cl A 8,600(b) 310,030 Reader's Digest Assn 8,175 115,104 Time Warner 36,300(b) 604,032 Tribune 14,099 609,077 Walt Disney 74,820 1,886,960 Total 6,106,409 Metals (0.5%) Alcan 7,657(c) 354,672 Alcoa 9,904 321,880 Total 676,552 Multi-industry (1.6%) General Electric 25,473 869,139 ITT Inds 2,125 172,423 Tyco Intl 32,716(c) 1,019,103 Total 2,060,665 Paper & packaging (1.8%) Avery Dennison 4,874 296,534 Bowater 12,224 450,332 Intl Paper 18,164 699,496 Temple-Inland 9,199 543,845 Weyerhaeuser 6,011 376,529 Total 2,366,736 Real estate investment trust (0.7%) Apartment Investment & Management Cl A 7,696 282,366 Equity Office Properties Trust 24,233 681,432 Total 963,798 Restaurants (0.4%) Domino's Pizza 16,900(b) 277,160 Krispy Kreme Doughnuts 10,100(b) 107,060 McDonald's 5,284 154,029 Total 538,249 Retail -- drugstores (0.2%) CVS 5,800 252,068 Retail -- general (2.1%) Dollar General 600 11,550 Dollar Tree Stores 4,895(b) 141,466 Family Dollar Stores 3,850 113,768 Home Depot 15,426 633,700 Sonic Automotive 17,462 353,256 Target 16,076 804,121 Wal-Mart Stores 11,900 641,648 Total 2,699,509 Retail -- grocery (0.2%) Kroger 15,000(b) $226,650 Telecom equipment & services (1.3%) Lucent Technologies 39,600(b) 140,580 Motorola 26,334 454,525 Nokia ADR 67,700(c) 1,043,934 Total 1,639,039 Utilities -- electric (3.5%) Dominion Resources 15,461 994,452 Entergy 12,259 801,248 Exelon 25,262 1,000,881 FPL Group 4,566 314,597 PPL 7,796 405,392 Southern Co 24,800 783,432 Xcel Energy 12,000 205,200 Total 4,505,202 Utilities -- natural gas (0.3%) ONEOK 15,749 422,388 Utilities -- telephone (4.0%) BellSouth 22,784 607,649 Citizens Communications 9,400 125,960 KT ADR 30,696(c) 566,648 SBC Communications 58,773 1,484,606 Sprint 12,600 263,970 Verizon Communications 55,609 2,174,312 Total 5,223,145 Total common stocks (Cost: $114,289,035) $119,605,924 Short-term securities (7.9%) Issuer Effective Amount Value(a) yield payable at maturity U.S. government agencies (7.4%) Federal Natl Mtge Assn Disc Nts 11-08-04 1.71% $700,000 $699,668 11-19-04 1.77 2,700,000 2,697,212 12-07-04 1.84 2,200,000 2,195,615 12-14-04 1.83 3,000,000 2,992,986 12-15-04 1.77 1,100,000 1,097,460 Total 9,682,941 Commercial paper (0.5%) Ranger Funding Company LLC 12-09-04 1.92 600,000 598,688 Total short-term securities (Cost: $10,281,852) $10,281,629 Total investments in securities (Cost: $124,570,887)(d) $129,887,553 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 2 -- AXP LARGE CAP VALUE FUND -- PORTFOLIO HOLDINGS AT OCT. 31, 2004 Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Annual Report dated July 31, 2004. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. At Oct. 31, 2004, the value of foreign securities represented 7.4% of net assets. (d) At Oct. 31, 2004, the cost of securities for federal income tax purposes was approximately $124,571,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 7,612,000 Unrealized depreciation (2,295,000) ---------- Net unrealized appreciation $ 5,317,000 ----------- How to find information about the Fund's portfolio holdings (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii) The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at www.americanexpress.com/funds. -------------------------------------------------------------------------------- 3 -- AXP LARGE CAP VALUE FUND -- PORTFOLIO HOLDINGS AT OCT. 31, 2004 S-6246-80 A (12/04) PORTFOLIO HOLDINGS FOR AXP(R) QUANTITATIVE LARGE CAP EQUITY FUND AT OCT. 31, 2004 Investments in Securities AXP Quantitative Large Cap Equity Fund Oct. 31, 2004 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (98.6%) Issuer Shares Value(a) Aerospace & defense (1.5%) Boeing 3,750 $187,125 General Dynamics 1,018 103,958 Goodrich 831 25,620 Honeywell Intl 2,242 75,511 Rockwell Collins 1,517 53,808 United Technologies 1,842 170,974 Total 616,996 Automotive & related (2.0%) Delphi 9,270 77,961 Ford Motor 11,413 148,711 General Motors 9,973 384,460 Genuine Parts 2,605 103,913 Johnson Controls 1,861 106,728 Total 821,773 Banks and savings & loans (4.6%) Bank of America 18,960 849,218 Comerica 2,063 126,895 First Horizon Natl 649 28,089 Natl City 9,926 386,816 Washington Mutual 12,374 478,998 Total 1,870,016 Beverages & tobacco (8.3%) Altria Group 47,788(d) 2,315,807 Coca-Cola 15,787 641,899 Coca-Cola Enterprises 5,244 109,652 Pepsi Bottling Group 2,231 62,557 Reynolds American 3,298 227,100 UST 993 40,872 Total 3,397,887 Broker dealers (3.1%) Bear Stearns Companies 1,303 123,459 Charles Schwab 6,871 62,870 JPMorgan Chase & Co 25,484 983,683 Lehman Brothers Holdings 1,128 92,665 Total 1,262,677 Building materials & construction (0.2%) American Standard Companies 1,861(b) 68,057 Cellular telecommunications (0.7%) Nextel Communications Cl A 11,091(b) 293,801 Chemicals (0.1%) Eastman Chemical 953 45,239 Computer hardware (2.8%) Apple Computer 1,791(b) 94,081 Cisco Systems 50,251(b) 965,321 Lexmark Intl Cl A 932(b) 77,459 Total 1,136,861 Computer software & services (3.4%) Autodesk 2,023 106,713 Automatic Data Processing 2,125 92,204 Electronic Data Systems 5,286 112,433 First Data 4,061 167,638 NCR 1,614(b) 90,949 Oracle 49,304(b) 624,189 Symantec 3,393(b) 193,197 Total 1,387,323 Electronics (2.9%) Agilent Technologies 3,316(b) 83,099 Broadcom Cl A 1,589(b) 42,982 Intel 43,347 964,904 Natl Semiconductor 4,068(b) 67,936 Sanmina-SCI 4,941(b) 39,528 Total 1,198,449 Energy (11.8%) Amerada Hess 2,483 200,403 Anadarko Petroleum 6,035 407,061 Ashland 937 53,990 Burlington Resources 5,078 210,737 ChevronTexaco 9,123 484,066 ConocoPhillips 10,473 882,978 Devon Energy 3,406 251,942 Exxon Mobil 32,596(d) 1,604,374 Marathon Oil 1,837 70,008 Occidental Petroleum 6,896 385,004 Sunoco 1,399 104,030 Valero Energy 4,348 186,834 Total 4,841,427 Energy equipment & services (0.4%) Baker Hughes 2,367 101,379 BJ Services 1,099 56,049 Total 157,428 Finance companies (0.3%) MGIC Investment 1,989 127,913 Financial services (3.9%) Countrywide Financial 13,061 417,038 Fannie Mae 16,632 1,166,735 Total 1,583,773 Furniture & appliances (0.4%) Black & Decker 556 44,636 Stanley Works 1,664 74,081 Whirlpool 660 38,775 Total 157,492 Health care products (10.0%) Becton, Dickinson & Co 5,534 290,535 Biogen Idec 4,121(b) 239,677 Biomet 1,177 54,942 CR Bard 1,051 59,697 Forest Laboratories 2,050(b) 91,430 Johnson & Johnson 34,818 2,032,674 Medtronic 3,639 185,989 Merck & Co 20,607 645,205 Schering-Plough 5,541 100,348 Zimmer Holdings 5,469(b) 424,340 Total 4,124,837 Health care services (1.3%) Anthem 969(b) 77,908 Cardinal Health 3,124 146,047 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 1 -- AXP QUANTITATIVE LARGE CAP EQUITY FUND -- PORTFOLIO HOLDINGS AT OCT. 31, 2004 Common stocks (continued) Issuer Shares Value(a) Health care services (cont.) Humana 1,438(b) $27,538 Tenet Healthcare 6,272(b) 67,236 WellPoint Health Networks 2,037(b) 198,933 Total 517,662 Home building (0.7%) Centex 2,054 106,685 KB HOME 1,035 85,129 Pulte Homes 1,808 99,223 Total 291,037 Household products (1.4%) Avon Products 4,439 175,562 Gillette 9,556 396,383 Total 571,945 Industrial transportation (0.2%) Norfolk Southern 2,955 100,322 Insurance (3.3%) Allstate 4,943 237,709 Ambac Financial Group 856 66,819 Aon 4,949 101,009 CIGNA 4,499 285,507 Hartford Financial Services Group 820 47,954 Jefferson-Pilot 990 47,807 Lincoln Natl 652 28,558 Loews 3,356 201,024 MBIA 918 53,115 Principal Financial Group 1,587 59,925 Torchmark 2,377 128,406 UnumProvident 6,129 83,722 Total 1,341,555 Investment companies (2.9%) iShares MSCI EAFE Index Fund 8,000 1,172,240 Leisure time & entertainment (1.3%) Brunswick 1,032 48,421 Eastman Kodak 7,354 222,679 Harley-Davidson 4,362 251,121 Total 522,221 Lodging & gaming (0.4%) Intl Game Technology 4,988 164,804 Machinery (0.3%) Deere & Co 209 12,494 Ingersoll-Rand Cl A 744(c) 50,919 Parker Hannifin 814 57,493 Total 120,906 Media (2.0%) eBay 6,190(b) 604,206 Yahoo! 5,864(b) 212,218 Total 816,424 Metals (0.3%) Phelps Dodge 764 66,880 United States Steel 1,322 48,544 Total 115,424 Multi-industry (4.1%) 3M 4,013 311,288 Monsanto 4,202 179,636 Textron 569 38,777 Tyco Intl 36,987(c) 1,152,145 Total 1,681,846 Paper & packaging (0.4%) Georgia-Pacific 3,144 108,751 Louisiana-Pacific 1,691 41,446 Total 150,197 Precious metals (0.6%) Freeport-McMoRan Copper & Gold Cl B 1,774 64,254 Newmont Mining 3,678 174,779 Total 239,033 Restaurants (0.5%) Starbucks 3,804(b) 201,156 Retail -- drugstores (0.3%) CVS 2,683 116,603 Retail -- general (7.6%) Best Buy 1,077 63,780 Gap 3,605 72,028 Home Depot 22,035 905,198 JC Penney 4,626 160,013 May Dept Stores 3,533 92,070 Nordstrom 1,195 51,600 Sears, Roebuck & Co 6,347 222,145 Toys "R" Us 2,214(b) 39,874 Wal-Mart Stores 27,346 1,474,497 Total 3,081,205 Retail -- grocery (1.0%) Albertson's 5,606 127,873 Kroger 9,176(b) 138,649 Safeway 8,246(b) 150,407 Total 416,929 Telecom equipment & services (5.3%) Avaya 2,180(b) 31,392 Motorola 30,645 528,933 QUALCOMM 37,938 1,586,187 Total 2,146,512 Textiles & apparel (0.6%) Liz Claiborne 1,051 42,965 Nike Cl B 1,777 144,487 VF 1,149 61,851 Total 249,303 Utilities -- electric (2.1%) American Electric Power 1,062 34,972 CenterPoint Energy 5,004 52,592 DTE Energy 1,380 58,940 Edison Intl 6,574 200,506 PG&E 6,078(b) 194,739 Public Service Enterprise Group 1,918 81,688 TECO Energy 2,771 38,794 TXU 2,966 181,579 Total 843,810 Utilities -- telephone (5.6%) AT&T 9,269 158,593 BellSouth 29,044 774,603 SBC Communications 35,361 893,219 Sprint 12,983 271,994 Verizon Communications 4,458 174,308 Total 2,272,717 Total common stocks (Cost: $38,816,800) $40,225,800 Short-term security (1.2%) Issuer Effective Principal Value(a) yield amount Commercial paper CRC Funding LLC 11-01-04 1.86% $500,000 $499,923 Total short-term security (Cost: $499,948) $499,923 Total investments in securities (Cost: $39,316,748)(e) $40,725,723 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 2 -- AXP QUANTITATIVE LARGE CAP EQUITY FUND -- PORTFOLIO HOLDINGS AT OCT. 31, 2004 Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements in the most recent Annual Report dated July 31, 2004. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. At Oct. 31, 2004, the value of foreign securities represented 2.9% of net assets. (d) Partially pledged as initial margin deposit on the following open stock index futures contracts: Type of security Contract Purchase contract S&P 500 Index, Dec. 2004 1 (e) At Oct. 31, 2004, the cost of securities for federal income tax purposes was approximately $39,317,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 2,530,000 Unrealized depreciation (1,121,000) ---------- Net unrealized appreciation $ 1,409,000 How to find information about the Fund's portfolio holdings (i) The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (Commission) for the first and third quarters of each fiscal year on Form N-Q; (ii) The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov; (iii) The Fund's Forms N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, DC (information on the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iv) The Fund's complete schedule of portfolio holdings, as disclosed in its annual and semiannual shareholder reports and in its filings on Form N-Q, can be found at www.americanexpress.com/funds. -------------------------------------------------------------------------------- 3 -- AXP QUANTITATIVE LARGE CAP EQUITY FUND -- PORTFOLIO HOLDINGS AT OCT. 31, 2004 S-6263-80 A (12/04) Item 2. Control and Procedures. (a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Separate certification for the Registrant's principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) AXP GROWTH SERIES, INC. By /s/ Paula R. Meyer ------------------ Paula R. Meyer President and Principal Executive Officer Date December 28, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/ Paula R. Meyer ------------------ Paula R. Meyer President and Principal Executive Officer Date December 28, 2004 By /s/ Jeffrey P. Fox ------------------ Jeffrey P. Fox Treasurer and Principal Financial Officer Date December 28, 2004