-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SHNCCnik6sI3RBlzaZAXgthcOHcmyD9PYLw9OTkiQXsmpIaIdDxCXL9hzvR1Swhb zzSCthoFQT+fqWvBDxFfJw== /in/edgar/work/0000820027-00-000795/0000820027-00-000795.txt : 20001004 0000820027-00-000795.hdr.sgml : 20001004 ACCESSION NUMBER: 0000820027-00-000795 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000731 FILED AS OF DATE: 20001003 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AXP NEW DIMENSIONS FUND INC /MN/ CENTRAL INDEX KEY: 0000049717 STANDARD INDUSTRIAL CLASSIFICATION: [0000 ] IRS NUMBER: 410940846 STATE OF INCORPORATION: MN FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-01629 FILM NUMBER: 733862 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6123722772 FORMER COMPANY: FORMER CONFORMED NAME: AXP NEW DIMENSIONS FUND INC/ DATE OF NAME CHANGE: 20000404 FORMER COMPANY: FORMER CONFORMED NAME: IDS NEW DIMENSIONS FUND INC DATE OF NAME CHANGE: 19920703 N-30D 1 0001.txt AXP NEW DIMENSIONS FUND, INC. AXPSM New Dimensions Fund(R) 2000 ANNUAL REPORT (PROSPECTUS ENCLOSED) American Express(R) Funds (icon of) ruler AXP New Dimensions Fund seeks to provide shareholders with long-term growth of capital. (This annual report includes a prospectus that describes in detail the Fund's objective, investment strategy, risks, sales charges, fees and other matters of interest. Please read the prospectus carefully before you invest or send money.) 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 AXP New Dimensions Fund. The Fund looks for companies from around the world that not only have a history of continuous growth, but are believed to be poised to continue growing over the long term due to their management, marketing innovation and/or technological advances. AXP NEW DIMENSIONS FUND Table of Contents 2000 ANNUAL REPORT The purpose of this annual report is to tell investors how the Fund performed. From the Chairman 4 From the Portfolio Managers 4 Fund Facts 6 The 10 Largest Holdings 8 Making the Most of the Fund 9 The Fund's Long-term Performance 10 Independent Auditors' Report (Fund) 12 Financial Statements (Fund) 13 Notes to Financial Statements (Fund) 16 Independent Auditors' Report (Portfolio) 25 Financial Statements (Portfolio) 26 Notes to Financial Statements (Portfolio) 29 Investments in Securities 34 Federal Income Tax Information 45 ANNUAL REPORT - 2000 (picture of) Arne H. Carlson Arne H. Carlson Chairman of the board From the Chairman The financial markets have always had their ups and downs, but in recent months volatility has become more frequent and intense. While no one can say with certainty what the markets will do, American Express Financial Corporation, the Fund's investment manager, expects economic growth to continue this year, accompanied by a modest rise in long-term interest rates. But no matter what transpires, this is a great time to take a close look at your goals and investments. We encourage you to: o Consult a professional investment advisor 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 managers' 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 Managers The past 12 months was a volatile but ultimately productive period for growth stocks and AXP New Dimensions Fund. For the fiscal year -- August 1999 through July 2000 -- the Fund's Class A shares generated a total return (excluding the sales charge) of 23.16%. (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 labored without success 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. But by mid-October, buoyed by fresh reports of AXP NEW DIMENSIONS FUND still-low inflation, generally healthy corporate profits and growing excitement regarding the Internet, stocks were gaining ground. Within weeks, the advance turned into a remarkable rally that gathered momentum through the end of 1999 and ultimately reached a peak in early March. (picture of) Douglas Guffy Douglas Guffy Portfolio manager (picture of) Anne Obermeyer Anne Obermeyer Portfolio manager PSYCHOLOGY SHIFT At that point, the psychology of the market underwent an abrupt change from optimism to pessimism regarding inflation, interest rates and corporate profits. Compounding the situation was increasing concern that sky-high prices for many technology-related stocks had reached unjustifiable levels. The result for the market, especially the technology sector, was a sharp spring downturn, from which it struggled to recover over the summer months. While the pattern of the Fund's performance generally tracked that of the market as a whole for the 12 months, good stock selection allowed it to generate a far-better return. Clearly driving the Fund's gains 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 and JDS Uniphase among the largest and more productive holdings. Given the overall lofty prices of such stocks, we reduced holdings in the technology/telecommunications area in the spring and summer, while we increased investments in energy, health-care and financial stocks. That strategy had the desired effect of lessening the volatility in the Fund's net asset value, as well as allowing the Fund to reap some gains resulting from improved performance by those three sectors. Looking toward the new fiscal year, while the economy remains on the growth track, the stock market may, at least over the near term, continue to be buffeted by concerns about inflation, interest rates and corporate profits. But as the year progresses, we expect to see a gradually improving investment environment that will reward stocks with solid growth credentials. Gordon M. Fines Douglas Guffy Anne Obermeyer ANNUAL REPORT - 2000 Fund Facts Class A -- 12-month performance (All figures per share) Net asset value (NAV) July 31, 2000 $36.26 July 31, 1999 $31.21 Increase $ 5.05 Distributions -- Aug. 1, 1999 - July 31, 2000 From income $ 0.05 From capital gains $ 2.06 Total distributions $ 2.11 Total return** +23.16%*** Class B -- 12-month performance (All figures per share) Net asset value (NAV) July 31, 2000 $35.22 July 31, 1999 $30.54 Increase $ 4.68 Distributions -- Aug. 1, 1999 - July 31, 2000 From income $ -- From capital gains $ 2.06 Total distributions $ 2.06 Total return** +22.20%*** AXP NEW DIMENSIONS FUND Class C -- June 26, 2000* - July 31, 2000 (All figures per share) Net asset value (NAV) July 31, 2000 $35.23 June 26, 2000* $35.52 Decrease 0.29 Distributions -- June 26, 2000* - July 31, 2000 From income $ -- From capital gains $ -- Total distributions $ -- Total return** - -0.82%*** Class Y -- 12-month performance (All figures per share) Net asset value (NAV) July 31, 2000 $36.33 July 31, 1999 $31.24 Increase $ 5.09 Distributions -- Aug. 1, 1999 - July 31, 2000 From income $ 0.09 From capital gains $ 2.06 Total distributions $ 2.15 Total return** +23.35%*** * Inception date ** 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. ANNUAL REPORT - 2000 The 10 Largest Holdings Percent Value (of net assets) (as of July 31, 2000) Cisco Systems 4.05% $1,230,224,999 General Electric 3.39 1,028,750,000 Citigroup 3.32 1,009,135,347 Exxon Mobil 3.29 999,986,050 Wal-Mart Stores 3.22 977,887,500 JDS Uniphase 3.11 945,000,000 Intel 3.08 934,500,000 EMC 2.80 851,250,000 Viacom Cl B 2.62 795,750,000 Morgan Stanley, Dean Witter, Discover & Co 2.40 730,000,000 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 31.28% of net assets AXP NEW DIMENSIONS FUND Making the Most of the Fund BUILD YOUR ASSETS SYSTEMATICALLY One of the best ways to invest in the Fund is by dollar-cost averaging -- a time-tested strategy that can make market fluctuations work for you. To dollar-cost average, simply invest a fixed amount of money regularly. You'll automatically buy more shares when the Fund's share price is low, fewer shares when it is high. The chart below shows how dollar-cost averaging works. In these three hypothetical scenarios, you will see six months of share price fluctuations. This strategy does not ensure a profit or avoid a loss if the market declines. But, if you can continue to invest regularly through changing market conditions even when the price of your shares falls or the market declines, it can be an effective way to accumulate shares to meet your long-term goals. How dollar-cost averaging works Jan Feb Mar Apr May Jun $15 $16 $18 $20 $10 $10 $12 $14 $ 5 Accumulated shares* Average market Your average price per share cost per share 42.25 $15 $14.20 _______________________________________________________________________________ Jan Feb Mar Apr May Jun $15 $10 $10 $10 $ 5 $8 $5 $5 $8 Accumulated shares* Average market Your average price per share cost per share 85.0 $7.66 $7.05 _______________________________________________________________________________ Jan Feb Mar Apr May Jun $15 $10 $10 $8 $6 $7 $ 5 $4 $4 Accumulated shares* Average market Your average price per share cost per share 103.5 $6.50 $5.80 _______________________________________________________________________________ $100 invested per month. Total invested: $600. * Shares purchased is determined by dividing the amount invested per month by the current share price. THREE WAYS TO BENEFIT FROM A MUTUAL FUND: o your shares increase in value when the Fund's investments do well o you receive capital gains when the gains on investments sold by the Fund exceed losses o you receive income when the Fund's stock dividends, interest and short-term gains exceed its expenses. All three make up your total return. You potentially can increase your investment if, like most investors, you reinvest your dividends and capital gain distributions to buy additional shares of the Fund or another fund. ANNUAL REPORT - 2000 The Fund's Long-term Performance How your $10,000 has grown in AXP New Dimensions Fund $60,000 X S&P 500 X $50,000 Index $57,176 AXP New X Dimensions $40,000 Russell 1000(R) Fund Class A Growth Index X Lipper Large-Cap Growth Index $30,000 $20,000 $9,425 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 Average Annual Total Returns (as of July 31, 2000) 1 year 5 years 10 years (A) Since inception (B&Y) Class A +16.07% +22.09% +19.05% --% Class B +18.20% +22.52% --% +24.35%* Class Y +23.35% +23.70% --% +25.53%* * Inception date was March 20, 1995. Assumes: Holding period from 8/1/90 to 7/31/00. Returns do not reflect taxes payable on distributions. Reinvestment of all income and capital gain distributions for the Fund has a value of $27,181. Also see "Past Performance" in the Fund's current prospectus. On the graph above you can see how the Fund's total return compared to three widely cited performance indexes, Standard &Poor's 500 Index (S&P 500 Index), Russell 1000(R) Growth Index and the Lipper Large-Cap Growth Index. In comparing AXP New Dimensions Fund (Class A) to the three indexes, you should take into account the fact that the Fund's performance reflects the maximum sales charge of 5.75%, while such charges are not reflected in the performance of the indexes. Class C went effective June 26, 2000 and therefore performance information is not presented. Your investment and return values fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. Average annual total return figures reflect the impact of the applicable sales charge up to a maximum of 5.75%. This was a period of widely fluctuating security prices. Past performance is no guarantee of future results. AXP NEW DIMENSIONS FUND S&P 500 Index, an unmanaged list of common stocks, is frequently used as a general measure of market performance. The index reflects reinvestment of all distributions and changes in market prices, but excludes brokerage commissions or other fees. However, the S&P 500 companies may be generally larger than those in which the Portfolio invests. Russell 1000(R) Growth Index, an unmanaged index, measures the performance of those Russell 1000 companies in the Russell 3000 Index, which represents 92% of the total market capitalization of the Russell 3000 Index. These companies have higher price-to-book ratios and higher forecasted growth values. Lipper Large-Cap Growth Index, an unmanaged index published by Lipper Inc., includes the 30 largest funds that are generally similar to this Fund, although some funds in the index may have somewhat different investment policies or objectives. ANNUAL REPORT - 2000 The financial statements contained in Post-Effective Amendment #64 to Registration Statement No. 2-28529 filed on or about September 27, 2000, are incorporated herein by reference. Federal Income Tax Information (Unaudited) The Fund is required by the Internal Revenue Code of 1986 to tell its shareholders about the tax treatment of the dividends it pays during its fiscal year. The dividends listed below are reported to you on Form 1099-DIV, Dividends and Distributions. Shareholders should consult a tax advisor on how to report distributions for state and local tax purposes. AXP New Dimensions Fund Fiscal year ended July 31, 2000 Class A Income distribution taxable as dividend income, 100% qualifying for deduction by corporations. Payable date Per share Dec. 23, 1999 $0.05833 Capital gain distribution taxable as long-term capital gain. Payable date Per share Dec. 23, 1999 $2.05524 Total distributions $2.11357 ANNUAL REPORT - 2000 Class B Income distribution taxable as dividend income, 100% qualifying for deduction by corporations. Capital gain distribution taxable as long-term capital gain. Payable date Per share Dec. 23, 1999 $2.05524 Total distributions $2.05524 Class Y Income distribution taxable as dividend income, 100% qualifying for deduction by corporations. Payable date Per share Dec. 23, 1999 $0.09260 Capital gain distribution taxable as long-term capital gain. Payable date Per share Dec. 23, 1999 $2.05524 Total distributions $2.14784 AXP NEW DIMENSIONS FUND This page left blank intentionally American Express(R) Funds AXP New Dimensions Fund 70100 AXP Financial Center Minneapolis, MN 55474 PRSRT STD AUTO U.S. POSTAGE PAID AMERICAN EXPRESS This report must be accompanied or preceded by the Fund's current prospectus. 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. S-6440 T (9/00) STATEMENT OF DIFFERENCES Difference Description 1) The layout is different 1) Some of the layout in the throughout the annual report. annual report to shareholders is in two columns. 2) There are pictures, icons 2) Each picture, icon and and graphs throughout the graph is described in annual report. parentheses. -----END PRIVACY-ENHANCED MESSAGE-----