-----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, L0G/Z91iNEqhmNceUU/2tnjAMeYlxPq4QCF06LK6SWKUbKXxUyYkZYqUUjcvIrhj RgkDxDgNuntLDKEDPmo/iQ== 0000820027-01-500041.txt : 20010319 0000820027-01-500041.hdr.sgml : 20010319 ACCESSION NUMBER: 0000820027-01-500041 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010131 FILED AS OF DATE: 20010316 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AXP NEW DIMENSIONS FUND INC /MN/ CENTRAL INDEX KEY: 0000049717 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [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: 1569740 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 s6015a.txt AXP GROWTH DIMENSIONS AXP(R) Growth Dimensions Fund 2001 SEMIANNUAL REPORT American Express Funds (icon of) ruler AXP Growth Dimensions Fund seeks to provide shareholders with long-term capital growth. Profit Power Rising stock prices often go hand-in-hand with rising profits. AXP Growth Dimensions Fund tries to identify companies with above-average profit potential and the staying power to provide long-term capital appreciation. CONTENTS From the Chairman 3 From the Portfolio Managers 3 Fund Facts 5 The 10 Largest Holdings 6 Financial Statements 7 Notes to Financial Statements 10 Investments in Securities 19 (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 the retirement plan 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 semiannual 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 six months was a trying time for investors in large-capitalization growth stocks, particularly those in the technology sector. AXP Growth Dimensions Fund's performance reflected the impact of the negative environment, as its Class A shares experienced a loss of 21.35% (excluding the sales charge) for the first half of the fiscal year -- August 2000 through January 2001. The period began well enough, as the Fund took advantage of a surging stock market to record a strong gain in August. But as the monthly calendar changed, so did investor psychology. Suddenly, the focus was on a host of negatives, including a slowing economy, slumping corporate profits and the possibility that companies would sharply reduce their capital spending. (picture of) Anne Obermeyer Anne Obermeyer Portfolio manager (picture of) Doug Guffy Doug Guffy Portfolio manager NASDAQ NOSEDIVE As the concerns increased, so did the selling pressure on the stock market. Most affected was the Nasdaq Composite, a group of stocks that includes many of the leading U.S. technology names. Illustrating the magnitude of the downturn, the Nasdaq fell by nearly 40% from September through November. After a relatively calm December, the market, and technology stocks in particular, got a shot in the arm from a surprise interest-rate cut by the Federal Reserve in early January. That set the stage for the Fund to end the period on a positive note. Because of the Fund's recent introduction (late June 2000), we spent much of the six months building the portfolio. Our goal was to invest in the most promising growth companies -- those with the potential to be industry and stock market leaders in both the months and years ahead. That most often led us to technology stocks, primarily those in the fiber optic, communications semiconductor and data storage segments. On the whole, those holdings were hard hit in last fall's decline. But if there was a silver lining to that period, it was that we were often able to pick up shares at much lower prices. The next-largest areas of investment were health care, including pharmaceuticals and medical devices, and financial services, including banking, brokerage and insurance. Those sectors held up well during the market's turbulence and provided overall positive results for the Fund during the six months. At the end of the period, the portfolio held 64 stocks, in the middle of our ongoing target range of 60 to 70. Looking ahead, while we expect the market to remain volatile, we also foresee a gradual improvement in the investment environment. This outlook is based on two key assumptions: additional interest-rate cuts by the Federal Reserve and the avoidance of an economic recession. If we're correct, investors eventually should become more comfortable owning the high-growth stocks that comprise the Fund's portfolio, which in turn would likely allow the Fund to enjoy better performance. Gordon M. Fines Anne Obermeyer Doug Guffy Fund Facts Class A -- 6-month performance (All figures per share) Net asset value (NAV) Jan. 31, 2001 $3.83 July 31, 2000 $4.87 Decrease $1.04 Distributions -- Aug. 1, 2000 - Jan. 31, 2001 From income $ -- From long-term capital gains $ -- Total distributions $ -- Total return* -21.35% Class B -- 6-month performance (All figures per share) Net asset value (NAV) Jan. 31, 2001 $3.82 July 31, 2000 $4.87 Decrease $1.05 Distributions -- Aug. 1, 2000 - Jan. 31, 2001 From income $ -- From long-term capital gains $ -- Total distributions $ -- Total return* -21.56% Class C -- 6-month performance (All figures per share) Net asset value (NAV) Jan. 31, 2001 $3.82 July 31, 2000 $4.87 Decrease $1.05 Distributions -- Aug. 1, 2000 - Jan. 31, 2001 From income $ -- From long-term capital gains $ -- Total distributions $ -- Total return* -21.56% Class Y -- 6-month performance (All figures per share) Net asset value (NAV) Jan. 31, 2001 $3.84 July 31, 2000 $4.88 Decrease $1.04 Distributions -- Aug. 1, 2000 - Jan. 31, 2001 From income $ -- From long-term capital gains $ -- Total distributions $ -- Total return* -21.31% * The total return is a hypothetical investment in the Fund with all distributions reinvested. Returns do not include sales load. The prospectus discusses the effect of sales charges, if any, on the various classes. The 10 Largest Holdings Percent Value (of net assets) (as of Jan. 31, 2001) EMC 4.31% $20,137,349 Tyco Intl 4.29 20,020,000 Cisco Systems 4.17 19,467,500 General Electric 3.94 18,400,000 Corning 3.04 14,177,500 JDS Uniphase 2.82 13,155,000 Sanmina 2.81 13,128,750 Medtronic 2.66 12,420,000 Pfizer 2.51 11,739,000 Citigroup 2.40 11,194,000 For further detail about these holdings, please refer to the section entitled "Investments in Securities." The 10 holdings listed here make up 32.95% of net assets Financial Statements Statement of assets and liabilities AXP Growth Dimensions Fund Jan. 31, 2001 (Unaudited) Assets Investments in securities, at value (Note 1) (identified cost $504,373,612) $471,511,013 Cash in bank on demand deposit 117,849 Expense receivable from AEFC 58,095 Dividends receivable 93,894 Receivable for investment securities sold 2,357,285 U.S. government securities held as collateral (Note 4) 1,738,997 --------- Total assets 475,877,133 ----------- Liabilities Payable for investment securities purchased 3,703,388 Payable upon return of securities loaned (Note 4) 4,298,997 Accrued investment management services fee 6,515 Accrued distribution fee 6,407 Accrued transfer agency fee 1,322 Accrued administrative services fee 369 Option contracts written, at value (premium received $754,175) (Note 6) 692,625 Other accrued expenses 50,143 ------ Total liabilities 8,759,766 --------- Net assets applicable to outstanding capital stock $467,117,367 ============ Represented by Capital stock-- $.01 par value (Note 1) $ 1,220,204 Additional paid-in capital 509,172,134 Excess of distributions over net investment income (288,547) Accumulated net realized gain (loss) (Note 7) (10,185,375) Unrealized appreciation (depreciation) on investments (32,801,049) ----------- Total-- representing net assets applicable to outstanding capital stock $467,117,367 ============ Net assets applicable to outstanding shares: Class A $313,832,264 Class B $146,540,029 Class C $ 6,689,042 Class Y $ 56,032 Net asset value per share of outstanding capital stock: Class A shares 81,860,564 $ 3.83 Class B shares 38,393,242 $ 3.82 Class C shares 1,751,990 $ 3.82 Class Y shares 14,609 $ 3.84 See accompanying notes to financial statements. Statement of operations AXP Growth Dimensions Fund Six months ended Jan. 31, 2001 (Unaudited) Investment income Income: Dividends $ 262,289 Interest 798,444 Less foreign taxes withheld (259) ---- Total income 1,060,474 --------- Expenses (Note 2): Investment management services fee 494,894 Distribution fee Class A 163,848 Class B 319,778 Class C 18,025 Transfer agency fee 171,793 Incremental transfer agency fee Class A 12,536 Class B 10,630 Class C 730 Service fee-- Class Y 25 Administrative services fees and expenses 27,864 Compensation of board members 2,800 Custodian fees 29,390 Printing and postage 29,998 Registration fees 150,267 Audit fees 6,750 Other 7,940 ----- Total expenses 1,447,268 Expenses reimbursed by AEFC (Note 2) (94,878) ------- 1,352,390 Earnings credits on cash balances (Note 2) (3,408) ------ Total net expenses 1,348,982 --------- Investment income (loss)-- net (288,508) -------- Realized and unrealized gain (loss)-- net Net realized gain (loss) on: Security transactions (Note 3) (10,129,372) Futures contracts 43,791 Options contracts written (Note 6) (21,008) ------- Net realized gain (loss) on investments (10,106,589) Net change in unrealized appreciation (depreciation) on investments (31,459,327) ----------- Net gain (loss) on investments (41,565,916) ----------- Net increase (decrease) in net assets resulting from operations $(41,854,424) ============ See accompanying notes to financial statements.
Statements of changes in net assets AXP Growth Dimensions Fund Jan. 31, 2001 For the period Six months from June 26, 2000* (Unaudited) to July 31, 2000 Operations and distributions Investment income (loss)-- net $ (288,508) $ 3,048 Net realized gain (loss) on investments (10,106,589) (78,786) Net change in unrealized appreciation (depreciation) on investments (31,459,327) (1,256,420) ----------- ---------- Net increase (decrease) in net assets resulting from operations (41,854,424) (1,332,158) ----------- ---------- Distributions to shareholders from: Net investment income Class A (15,840) -- Class Y (1) -- ------- ---------- Total distributions (15,841) -- ------- ---------- Capital share transactions (Note 5) Proceeds from sales Class A shares (Note 2) 337,010,153 23,019,499 Class B shares 155,415,982 11,936,355 Class C shares 7,135,423 900,379 Class Y shares 94,395 2,031 Reinvestment of distributions at net asset value Class A shares 15,768 -- Class Y shares 1 -- Payments for redemptions Class A shares (18,107,517) (5,285,584) Class B shares (Note 2) (6,177,378) (203,420) Class C shares (Note 2) (320,920) (5,888) Class Y shares (28,949) -- ------- ---------- Increase (decrease) in net assets from capital share transactions 475,036,958 30,363,372 ----------- ---------- Total increase (decrease) in net assets 433,166,693 29,031,214 Net assets at beginning of period 33,950,674 4,919,460** ---------- --------- Net assets at end of period $467,117,367 $33,950,674 ============ =========== Undistributed (excess of distributions over) net investment income $ (288,547) $ 15,802 ------------ ----------- * When shares became publicly available. ** Initial capital of $5,000,000 was contributed on June 21, 2000. The Fund had a decrease in net assets resulting from operations of $80,540 during the period from June 21, 2000 to June 26, 2000 (when shares became publicly available). See accompanying notes to financial statements.
Notes to Financial Statements AXP Growth Dimensions Fund (Unaudited as to Jan. 31, 2001) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Fund is a series of AXP New Dimensions Fund, Inc. and is registered under the Investment Company Act of 1940 (as amended) as a diversified, open-end management investment company. AXP New Dimensions Fund, Inc. has 10 billion authorized shares of capital stock that can be allocated among the separate series as designated by the board. The Fund invests primarily in equity securities showing potential for significant growth. On June 21, 2000, American Express Financial Corporation (AEFC) invested $5,000,000 in the Fund which represented 998,200 shares for Class A, 600 shares for Class B, 600 shares for Class C and 600 shares for Class Y, respectively, which represented the initial capital for each class at $5.00 per share. Shares of the Fund were first offered to the public on June 26, 2000. The Fund offers Class A, Class B, Class C and Class Y shares. o Class A shares are sold with a front-end sales charge. o Class B shares may be subject to a contingent deferred sales charge (CDSC) and automatically convert to Class A shares during the ninth calendar year of ownership. o Class C shares may be subject to a CDSC. o Class Y shares have no sales charge and are offered only to qualifying institutional investors. All classes of shares have identical voting, dividend and liquidation rights. The distribution fee, incremental transfer agency fee and service fee (class specific expenses) differ among classes. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. The Fund's significant accounting policies are summarized below: Use of estimates Preparing financial statements that conform to accounting principles generally accepted in the United States of America requires management to make estimates (e.g., on assets and liabilities) that could differ from actual results. Valuation of securities All securities are valued at the close of each business day. Securities traded on national securities exchanges or included in national market systems are valued at the last quoted sales price. Debt securities are generally traded in the over-the-counter market and are valued at a price that reflects fair value as quoted by dealers in these securities or by an independent pricing service. Securities for which market quotations are not readily available are valued at fair value according to methods selected in good faith by the board. Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates; those maturing in 60 days or less are valued at amortized cost. Option transactions To produce incremental earnings, protect gains, and facilitate buying and selling of securities for investments, the Fund may buy and write options traded on any U.S. or foreign exchange or in the over-the-counter market where completing the obligation depends upon the credit standing of the other party. The Fund also may buy and sell put and call options and write covered call options on portfolio securities as well as write cash-secured put options. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of being unable to enter into a closing transaction if a liquid secondary market does not exist. Option contracts are valued daily at the closing prices on their primary exchanges and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss when the option transaction expires or closes. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option or the cost of a security for a purchased put or call option is adjusted by the amount of premium received or paid. Futures transactions To gain exposure to or protect itself from market changes, the Fund may buy and sell financial futures contracts traded on any U.S. or foreign exchange. The Fund also may buy and write put and call options on these futures contracts. Risks of entering into futures contracts and related options include the possibility of an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities. Upon entering into a futures contract, the Fund is required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The Fund recognizes a realized gain or loss when the contract is closed or expires. Foreign currency translations and foreign currency contracts Securities and other assets and liabilities denominated in foreign currencies are translated daily into U.S. dollars. Foreign currency amounts related to the purchase or sale of securities and income and expenses are translated at the exchange rate on the transaction date. The effect of changes in foreign exchange rates on realized and unrealized security gains or losses is reflected as a component of such gains or losses. In the statement of operations, net realized gains or losses from foreign currency transactions, if any, may arise from sales of foreign currency, closed forward contracts, exchange gains or losses realized between the trade date and settlement date on securities transactions, and other translation gains or losses on dividends, interest income and foreign withholding taxes. The Fund may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuation. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. The Fund is subject to the credit risk that the other party will not complete its contract obligations. Federal taxes The Fund's policy is to comply with all sections of the Internal Revenue Code that apply to regulated investment companies and to distribute substantially all of its taxable income to shareholders. No provision for income or excise taxes is thus required. Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of deferred losses on certain futures contracts, the recognition of certain foreign currency gains (losses) as ordinary income (loss) for tax purposes, and losses deferred due to "wash sale" transactions. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Fund. Dividends to shareholders An annual dividend from net investment income, declared and paid at the end of the calendar year, when available, is reinvested in additional shares of the Fund at net asset value or payable in cash. Capital gains, when available, are distributed along with the income dividend. Other Security transactions are accounted for on the date securities are purchased or sold. Dividend income is recognized on the ex-dividend date and interest income, including level-yield amortization of premium and discount, is accrued daily. 2. EXPENSES AND SALES CHARGES The Fund has agreements with AEFC to manage its portfolio and provide administrative services. Under an Investment Management Services Agreement, AEFC determines which securities will be purchased, held or sold. The management fee is a percentage of the Fund's average daily net assets in reducing percentages from 0.60% to 0.48% annually. The fee may be adjusted upward or downward by a performance incentive adjustment based on a comparison of the performance of Class A shares of AXP Growth Dimensions Fund to the Lipper Large-Cap Growth Fund Index. The maximum adjustment is 0.12% of the Fund's average daily net assets after deducting 1% from the performance difference. If the performance difference is less than 1% the adjustment will be zero. The adjustement decreased the fee by $4,872 for the six months ended Jan. 31, 2001. Under an Administrative Service Agreement, the Fund pays AEFC a fee for administration and accounting services at a percentage of the Fund's average net daily assets in reducing percentages from 0.05% to 0.02% annually. A minor portion of additional administrative service expenses paid by the Fund are consultants' fees and fund office expenses. Under this agreement, the Fund also pays taxes, audit and certain legal fees, registration fees for shares, compensation of board members, corporate filing fees and any other expenses properly payable by the Fund and approved by the board. Under a separate Transfer Agency Agreement, American Express Client Service Corporation (AECSC) maintains shareholder accounts and records. The Fund pays AECSC an annual fee per shareholder account for this service as follows: o Class A $19.00 o Class B $20.00 o Class C $19.50 o Class Y $17.00 The Fund has agreements with American Express Financial Advisors Inc. (the Distributor) for distribution and shareholder services. Under a Plan and Agreement of Distribution, the Fund pays a distribution fee at an annual rate up to 0.25% of the Fund's average daily net assets attributable to Class A shares and up to 1.00% for Class B and Class C shares. Under a Shareholder Service Agreement, the Fund pays the Distributor a fee for service provided to shareholders by financial advisors and other servicing agents. The fee is calculated at a rate of 0.10% of the Fund's average daily net assets attributable to Class Y shares. Sales charges received by the Distributor for distributing Fund shares were $1,877,006, $20,302 and $1,004 for Class A, Class B and Class C, respectively, for the six months ended Jan. 31, 2001. AEFC and American Express Financial Advisors Inc. agreed to waive certain fees and to absorb certain expenses until July 31, 2002. Under this agreement, total expenses will not exceed 1.15% for Class A, 1.91% for Class B, 1.91% for Class C and 0.99% for Class Y. During the six months ended Jan. 31, 2001, the Fund's custodian and transfer agency fees were reduced by $3,408 as a result of earnings credits from overnight cash balances. The Fund also pays custodian fees to American Express Trust Company, an affiliate of AEFC. 3. SECURITIES TRANSACTIONS Cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated $480,826,371 and $26,946,853 respectively, for the six months ended Jan. 31, 2001. Realized gains and losses are determined on an identified cost basis. 4. LENDING OF PORTFOLIO SECURITIES As of Jan. 31, 2001, securities valued at $3,974,960 were on loan to brokers. For collateral, the Fund received $2,560,000 in cash and U.S. government securities valued at $1,738,997. Income from securities lending amounted to $2,149 for the six months ended Jan. 31, 2001. The risks to the Fund of securities lending are that the borrower may not provide additional collateral when required or return the securities when due.
5. CAPITAL SHARE TRANSACTIONS Transactions in shares of capital stock for the periods indicated are as follows: Six months ended Jan. 31, 2001 Class A Class B Class C Class Y Sold 82,065,568 37,728,994 1,654,823 21,054 Issued for reinvested distributions 4,531 -- -- -- Redeemed (4,698,720) (1,636,558) (79,224) (7,441) ---------- ---------- ------- ------ Net increase (decrease) 77,371,379 36,092,436 1,575,599 13,613 ---------- ---------- --------- ------ June 26, 2000* to July 31, 2000 Class A Class B Class C Class Y Sold 4,518,047 2,339,709 176,950 396 Issued for reinvested distributions -- -- -- -- Redeemed (1,027,062) (39,503) (1,159) -- ---------- ------- ------ --- Net increase (decrease) 3,490,985 2,300,206 175,791 396 --------- --------- ------- --- * When shares became publicly available.
6. OPTIONS CONTRACTS WRITTEN Contracts and premium amounts associated with options contracts written are as follows: Six months ended Jan. 31, 2001 Puts Calls Contracts Premium Contracts Premium Balance July 31, 2000 -- $ -- -- $ -- Opened 1,800 419,686 2,000 581,480 Closed -- -- (1,000) (246,991) ----- -------- ------ --------- Balance Jan. 31, 2001 1,800 $419,686 1,000 $ 334,489 ----- -------- ------ --------- See "Summary of significant accounting policies." 7. CAPITAL LOSS CARRY-OVER For federal income tax purposes, the Fund had a capital loss carry-over of $78,786 as of July 31, 2000, that will expire in 2008 if not offset by capital gains. It is unlikely the board will authorize a distribution of any net realized capital gains until the available capital loss carry-over has been offset or expires. 8. BANK BORROWINGS The Fund has a revolving credit agreement with U.S. Bank, N.A., whereby the Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund must have asset coverage for borrowings not to exceed the aggregate of 333% of advances equal to or less than five business days plus 367% of advances over five business days. The agreement, which enables the Fund to participate with other American Express mutual funds, permits borrowings up to $200 million, collectively. Interest is charged to each Fund based on its borrowings at a rate equal to the Federal Funds Rate plus 0.30% or the Eurodollar Rate (Reserve Adjusted) plus 0.20%. Borrowings are payable up to 90 days after such loan is executed. The Fund also pays a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.05% per annum. The Fund had no borrowings outstanding during the six months ended Jan. 31, 2001. 9. NEW ACCOUNTING PRONOUNCEMENT In November 2000, the AICPA issued a revised Audit and Accounting Guide, Audits of Investment Companies, which is effective for fiscal years beginning after Dec. 15, 2000. Adopting the revised Guide is not expected to have a significant impact on the Fund's financial position, results of operations or changes in its net assets. 10. FINANCIAL HIGHLIGHTS The tables below show certain important financial information for evaluating the Fund's results. Fiscal period ended July 31, Per share income and capital changes(a) Class A 2001(b) 2000(c) Net asset value, beginning of period $4.87 $4.92 Income from investment operations: Net investment income (loss) -- -- Net gains (losses) (both realized and unrealized) (1.04) (.05) Total from investment operations (1.04) (.05) Net asset value, end of period $3.83 $4.87 Ratios/supplemental data Net assets, end of period (in millions) $314 $22 Ratio of expenses to average daily net assetsd 1.10%(e),(f) 1.10%(e),(f) Ratio of net investment income (loss) to average daily net assets (.03%)(f) .37%(f) Portfolio turnover rate (excluding short-term securities) 14% 2% Total return(g) (21.35%) (1.02%) (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Six months ended Jan. 31, 2001 (Unaudited). (c) For the period from June 26, 2000 (when shares became publicy available) to July 31, 2000. (d) Expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. (e) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 1.19% and 2.32% for the six months ended Jan. 31, 2001 and for the period ended July 31, 2000, respectively. (f) Adjusted to an annual basis. (g) Total return does not reflect payment of a sales charge. Fiscal period ended July 31, Per share income and capital changes(a) Class B 2001(b) 2000(c) Net asset value, beginning of period $4.87 $4.92 Income from investment operations: Net investment income (loss) (0.01) -- Net gains (losses) (both realized and unrealized) (1.04) (.05) Total from investment operations (1.05) (.05) Net asset value, end of period $3.82 $4.87 Ratios/supplemental data Net assets, end of period (in millions) $147 $11 Ratio of expenses to average daily net assets(d) 1.86%(e),(f) 1.91%(e),(f) Ratio of net investment income (loss) to average daily net assets (.80%)(f) (.48%)(f) Portfolio turnover rate (excluding short-term securities) 14% 2% Total return(g) (21.56%) (1.02%) (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Six months ended Jan. 31, 2001 (Unaudited). (c) For the period from June 26, 2000 (when shares became publicly available) to July 31, 2000. (d) Expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. (e) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 1.96% and 3.40% for the six months ended Jan. 31, 2001 and for the period ended July 31, 2000, respectively. (f) Adjusted to an annual basis. (g) Total return does not reflect payment of a sales charge. Fiscal period ended July 31, Per share income and capital changes(a) Class C 2001(b) 2000(c) Net asset value, beginning of period $4.87 $4.92 Income from investment operations: Net investment income (loss) (0.01) -- Net gains (losses) (both realized and unrealized) (1.04) (.05) Total from investment operations (1.05) (.05) Net asset value, end of period $3.82 $4.87 Ratios/supplemental data Net assets, end of period (in millions) $7 $1 Ratio of expenses to average daily net assetsd 1.86%(e),(f) 1.91%(e),(f) Ratio of net investment income (loss) to average daily net assets (.82%)(f) (.48%)(f) Portfolio turnover rate (excluding short-term securities) 14% 2% Total returng (21.56%) (1.02%) (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Six months ended Jan. 31, 2001 (Unaudited). (c) For the period from June 26, 2000 (when shares became publicly available) to July 31, 2000. (d) Expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. (e) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 1.96% and 3.40% for the six months ended Jan. 31, 2001 and for the period ended July 31, 2000, respectively. (f) Adjusted to an annual basis. (g) Total return does not reflect payment of a sales charge. Fiscal period ended July 31, Per share income and capital changes(a) Class Y 2001(b) 2000(c) Net asset value, beginning of period $4.88 $4.92 Income from investment operations: Net investment income (loss) -- -- Net gains (losses) (both realized and unrealized) (1.04) (.04) Total from investment operations (1.04) (.04) Net asset value, end of period $3.84 $4.88 Ratios/supplemental data Net assets, end of period (in millions) $-- $-- Ratio of expenses to average daily net assetsd .94%(e),(f) .81%(e),(f) Ratio of net investment income (loss) to average daily net assets --%(f) .58%(f) Portfolio turnover rate (excluding short-term securities) 14% 2% Total return(g) (21.31%) (.81%) (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Six months ended Jan. 31, 2001 (Unaudited). (c) For the period from June 26, 2000 (when shares became publicly available) to July 31, 2000. (d) Expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. (e) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 1.03% and 2.12% for the six months ended Jan. 31, 2001 and for the period ended July 31, 2000, respectively. (f) Adjusted to an annual basis. (g) Total return does not reflect payment of a sales charge. Investments in Securities AXP Growth Dimensions Fund Jan. 31, 2001 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (95.2%) Issuer Shares Value(a) Banks and savings & loans (3.6%) Bank of America 120,000 $6,458,400 Fifth Third Bancorp 90,000 5,332,500 Wells Fargo 100,000 5,151,000 Total 16,941,900 Communications equipment & services (12.6%) American Tower Cl A 135,000(b) 4,887,000 Brocade Communications Systems 90,000(b) 8,128,125 Corning 250,000 14,177,500 Finisar 120,000(b) 4,365,000 JDS Uniphase 240,000(b) 13,155,000 Nokia ADR Cl A 250,000(c) 8,587,500 Nortel Networks 140,000(c) 5,352,200 Total 58,652,325 Computer software & services (5.7%) Akamai Technologies 80,000(b,d) 2,325,000 Microsoft 110,000(b) 6,716,875 Portal Software 360,000(b) 4,680,000 VeriSign 60,000(b) 4,410,000 VERITAS Software 90,000(b) 8,538,750 Total 26,670,625 Computers & office equipment (20.4%) AOL Time Warner 200,000(b) 10,512,000 BEA Systems 35,000(b) 2,307,813 Cisco Systems 520,000(b,e) 19,467,500 EMC 265,000(b) 20,137,349 Extreme Networks 60,000(b) 2,857,500 Juniper Networks 30,000(b) 3,200,625 McDATA Cl B 30,000(b,d) 1,650,000 Mercury Interactive 80,000(b) 6,950,000 Palm 85,000(b) 2,305,625 Redback Networks 40,000(b) 1,915,000 Sanmina 270,000(b) 13,128,750 Solectron 280,000(b) 11,158,000 Total 95,590,162 Electronics (7.3%) Applied Micro Circuits 60,000(b) 4,410,000 Broadcom Cl A 30,000(b) 3,298,125 Intel 65,000 2,405,000 Jabil Circuit 220,000(b) 8,470,000 Maxim Integrated Products 100,000(b) 6,106,250 PMC-Sierra 45,000(b) 3,400,313 Texas Instruments 135,000 5,913,000 Total 34,002,688 Financial services (6.3%) Citigroup 200,000 11,194,000 Lehman Brothers Holdings 45,000 3,702,600 Merrill Lynch 45,000 3,262,500 Paychex 65,000 2,933,125 Schwab (Charles) 310,000 8,187,100 Total 29,279,325 Health care (14.5%) Amgen 110,000(b) 7,734,375 Genentech 110,000(b) 6,517,500 Guidant 210,000(b) 10,395,000 Invitrogen 90,000(b) 6,705,000 Medtronic 230,000(e) 12,420,000 Pfizer 260,000 11,739,000 Pharmacia 120,000 6,722,400 Schering-Plough 110,000 5,544,000 Total 67,777,275 Health care services (1.2%) McKesson HBOC 170,000 5,553,900 Insurance (1.8%) American Intl Group 100,000 8,502,000 Leisure time & entertainment (2.0%) Harley-Davidson 35,000 1,588,650 Viacom Cl B 140,000(b) 7,728,000 Total 9,316,650 Multi-industry conglomerates (10.8%) General Electric 400,000 18,400,000 Minnesota Mining & Mfg 30,000 3,319,500 Robert Half Intl 150,000(b) 4,012,500 Symyx Technologies 120,000(b) 4,590,000 Tyco Intl 325,000(c) 20,020,000 Total 50,342,000 Retail (5.3%) Best Buy 130,000(b) 6,474,000 CVS 45,000(e) 2,664,000 Home Depot 85,000 4,097,000 Kohl's 65,000(b) 4,615,000 Safeway 90,000(b,e) 4,560,300 Target 60,000 2,278,800 Total 24,689,100 Utilities -- gas (3.1%) Dynegy Cl A 135,000 6,574,500 Enron 100,000 8,000,000 Total 14,574,500 Utilities -- telephone (0.6%) SBC Communications 60,000(e) 2,901,000 Total common stocks (Cost: $477,650,371) $444,793,450
Short-term securities (5.7%)(e) Issuer Annualized Amount Value(a) yield on date payable at of purchase maturity U.S. government agencies (5.3%) Federal Home Loan Bank Disc Nts 02-02-01 6.40% $5,000,000 $4,998,165 02-09-01 6.36 5,000,000 4,991,802 Federal Home Loan Mtge Corp Disc Nt 03-27-01 5.29 4,700,000 4,662,302 Federal Natl Mtge Assn Disc Nts 02-05-01 6.39 3,700,000 3,696,608 02-08-01 6.38 5,000,000 4,992,569 03-20-01 5.58 1,300,000 1,290,033 Total 24,631,479 Commercial paper (0.4%) Verizon Global Funding 03-14-01 5.72 2,100,000 2,086,084 Total short-term securities (Cost: $26,723,241) $26,717,563 Total investments in securities (Cost: $504,373,612)(f) $471,511,013 See accompanying notes to investments in securities.
Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. As of Jan. 31, 2001, the value of foreign securities represented 7.27% of net assets. (d) Security is partially or fully on loan. See Note 4 to the financial statements. (e) At Jan. 31, 2001, securities valued at $5,269,000 were held to cover open call options written as follows (see Note 6 to the financial statements): Issuer Contracts Exercise Expiration Value(a) price date CVS 400 $60 May 2001 $240,000 SBC Communications 600 55 April 2001 82,500 --- -- ------ Total value $322,500 -------- At Jan. 31, 2001, cash or short-term securities were designated to cover open put options written as follows (see Note 6 to the financial statements): Issuer Contracts Exercise Expiration Value(a) price date Cisco Systems 1,000 $30 April 2001 $178,125 Medtronic 400 50 May 2001 100,000 Safeway 400 45 June 2001 92,000 --- -- ------ Total value $370,125 -------- (f) At Jan. 31, 2001, the cost of securities for federal income tax purposes was approximately $504,374,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 15,173,000 Unrealized depreciation (48,036,000) ----------- Net unrealized depreciation $(32,863,000) ------------ American Express Funds AXP Growth Dimensions Fund 70100 AXP Financial Center Minneapolis, MN 55474 TICKER SYMBOL Class A: AXDAX Class B: ABGDX Class C: AXGDX Class Y: N/A PRSRT STD AUTO U.S. POSTAGE PAID AMERICAN EXPRESS S-6015 A (3/01) 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. -----END PRIVACY-ENHANCED MESSAGE-----