N-30D 1 s-6004d.txt AXP GROWTH DIMENSIONS FUND AXP(R) Growth Dimensions Fund 2001 ANNUAL REPORT (PROSPECTUS ENCLOSED) American Express(R) Funds (icon of) ruler AXP Growth Dimensions Fund seeks to provide shareholders with long-term capital growth. (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.) 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. Table of Contents 2001 ANNUAL REPORT The purpose of this annual report is to tell investors how the Fund performed. From the Chairman 3 From the Portfolio Managers 3 Fund Facts 5 The 10 Largest Holdings 6 Making the Most of the Fund 7 The Fund's Long-term Performance 8 Board Members and Officers 10 Independent Auditors' Report 12 Financial Statements 13 Notes to Financial Statements 16 Investments in Securities 25 Federal Income Tax Information 28 -------------------------------------------------------------------------------- 2 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT (picture of) Arne H. Carlson Arne H. Carlson Chairman of the board From the Chairman First, I want to thank you for being a shareholder in American Express funds. While we strongly believe in the virtues of investment, we also are very sensitive to the fluctuations of the financial markets. That is why we want to re-emphasize the importance of making certain that you frequently review your investments and regularly meet with your financial advisor. By doing so, you can take advantage of shifts in the markets to position your portfolio relative to expected market volatility and, possibly, achieve better overall performance. Second, I strongly advise that you keep a focus on the long-term. Reviewing past performance is helpful, but it should not be viewed as a leading indicator of the future. One constant is the necessity to have a financial plan based on appropriate asset allocation. Make sure that the plan provides what you need and expect. Our job, as a Board, is to monitor and confirm that the Fund complies with its investment objective and that its management style stays on target. We want the Fund to be able to deliver to you, the shareholder, the type of performance you expect and the best results that can be obtained. Toward that end, American Express has made significant changes in its investment management capability, and will continue to make changes as it strives to provide a consistent standard of excellence. On behalf of the Board, Arne H. Carlson (picture of) Anne Obermeyer Anne Obermeyer Portfolio manager From the Portfolio Managers The past 12 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 43.53% (excluding the sales charge) for the past fiscal year -- August 2000 through July 2001. The period began well enough, as the Fund took advantage of a surging stock market to record a strong gain in August 2000. But from that point on, the investment environment turned largely negative. Suddenly, the focus was on a host of concerns, including a slowing economy, slumping corporate profits and the possibility that companies would sharply reduce their capital spending. -------------------------------------------------------------------------------- 3 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT (picture of) Doug Guffy Doug Guffy Portfolio manager (picture of) Gordon M. Fines Gordon M. Fines Senior 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 60% from September through March. A more optimistic tone returned to the market in the spring, thanks to several cuts in short-term interest rates by the Federal Reserve. The cuts, investors reasoned, would soon lead to a rebound in the economic growth and, thus, a pick-up in corporate profits. But subsequent weak economic and profit reports eventually dashed those hopes, causing the market to struggle over the final two months of the period. Because of the Fund's relatively recent introduction (late June 2000), we spent much of the first part of the fiscal year 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 the years ahead. That most often led us to technology stocks, primarily those in the fiber optics, communications, semiconductor and data storage segments. On the whole, those holdings were hard hit during the decline. But if there was a silver lining to the situation, it was that we were able to pick up shares at lower prices. We did, however, eliminate some stocks in the telecommunications area, as well as other technology holdings that were not leaders in their market segments. 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 relatively well during the market's turbulence and provided overall positive results for the Fund. As for the current fiscal year, we continue to focus on technology stocks in the data storage, semiconductor and software areas, which we expect to do well in an improving economy. We're also emphasizing consumer cyclical stocks for the same reason. If we are correct in believing the economy and, thus, corporate profits rebound before the end of 2001, the Fund should benefit accordingly. Anne Obermeyer Doug Guffy Gordon M. Fines * Gordon M. Fines assists with the management of the Fund. -------------------------------------------------------------------------------- 4 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT Fund Facts Class A -- 12-month performance (All figures per share) Net asset value (NAV) July 31, 2001 $2.75 July 31, 2000 $4.87 Decrease $2.12 Distributions -- Aug. 1, 2000 - July 31, 2001 From income $ -- From long-term capital gains $ -- Total distributions $ -- Total return* -43.53% Class B -- 12-month performance (All figures per share) Net asset value (NAV) July 31, 2001 $2.73 July 31, 2000 $4.87 Decrease $2.14 Distributions -- Aug. 1, 2000 - July 31, 2001 From income $ -- From long-term capital gains $ -- Total distributions $ -- Total return* -43.94% Class C -- 12-month performance (All figures per share) Net asset value (NAV) July 31, 2001 $2.73 July 31, 2000 $4.87 Decrease $2.14 Distributions -- Aug. 1, 2000 - July 31, 2001 From income $ -- From long-term capital gains $ -- Total distributions $ -- Total return* -43.94% Class Y -- 12-month performance (All figures per share) Net asset value (NAV) July 31, 2001 $2.76 July 31, 2000 $4.88 Decrease $2.12 Distributions -- Aug. 1, 2000 - July 31, 2001 From income $ -- From long-term capital gains $ -- Total distributions $ -- Total return* -43.44% * 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. -------------------------------------------------------------------------------- 5 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT The 10 Largest Holdings Percent Value (of net assets) (as of July 31, 2001) General Electric 4.39% $15,225,000 Medtronic 4.02 13,928,700 Microsoft 3.82 13,238,000 Cisco Systems 3.44 11,916,400 Citigroup 3.18 11,046,200 Pfizer 3.09 10,717,200 AOL Time Warner 2.88 9,999,000 American Intl Group 2.88 9,990,000 Tyco Intl 2.84 9,842,000 Viacom Cl B 2.23 7,719,000 For further detail about these holdings, please refer to the section entitled "Investments in Securities." (picture of) pie chart The 10 holdings listed here make up 32.77% of net assets -------------------------------------------------------------------------------- 6 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT 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 $ 5 $8 $6 $4 $4 $7 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. -------------------------------------------------------------------------------- 7 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT The Fund's Long-term Performance Value of your $10,000 in AXP Growth Dimensions Fund (line chart) $20,000 $5,269 S&P 500 Index AXP Growth Dimensions Fund Class A $9,425 Lipper Large-Cap Growth Index Russell 1000(R) Growth Index 7/1/00 7/00 8/00 9/00 10/00 11/00 12/00 1/01 2/01 3/01 4/01 5/01 6/01 7/01 Average Annual Total Returns (as of July 31, 2001): 1 year Since inception* Class A -46.77% -44.28% Class B -46.18% -43.71% Class C -44.50% -41.58% Class Y -43.44% -40.99% * Inception date was June 26, 2000. Assumes: Holding period from 7/1/00 to 7/31/01. Returns do not reflect taxes payable on distributions. Reinvestment of all income and capital gain distributions for the Fund has a value of $0. 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 Growth Dimensions Fund (Class A) to these 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. 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 maximum applicable sales charge. This was a period of widely fluctuating security prices. Past performance is no guarantee of future results. 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 Fund invests. -------------------------------------------------------------------------------- 8 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT The Russell 1000(R) Growth Index, an unmanaged index, measures the performance of those companies among the 1,000 largest companies in the Russell 3000(R) Index with 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 the Fund, although some funds in the index may have somewhat different investment policies or objectives. -------------------------------------------------------------------------------- 9 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT Board Members and Officers Shareholders elect a board that oversees the Fund's operations. The board appoints officers who are responsible for day-to-day business decisions based on policies set by the board. The following is a list of the Fund's board members. Each member oversees 15 Master Trust portfolios and 68 American Express mutual funds. Board members serve until the next regular shareholders' meeting or until he or she reaches the mandatory retirement age established by the board. Independent Board Members Name, address, Position held Principal Other directorships age with occupations Registrant and during past length of five years service ----------------- ---------------- ----------------- ------------------------- H. Brewster Board member Retired chair Merck & Co., Inc. Atwater, Jr. since 1996 and chief (pharmaceuticals) 4900 IDS Tower executive Minneapolis, MN officer, 55402 General Mills, Born in 1931 Inc. (consumer foods) ----------------- ---------------- ----------------- ------------------------- Arne H. Carlson Chair of the Chair, 901 S. Board since Board Services Marquette Ave. 1999 Corporation Minneapolis, MN (provides 55402 administrative Born in 1934 services to boards) Former Governor of Minnesota ----------------- ---------------- ----------------- ------------------------- Lynne V. Cheney Board member Distinguished The Reader's Digest American since 1994 Fellow, AEI Association Inc. Enterprise Institute for Public Policy Research (AEI) 1150 17th St., N.W. Washington, D.C. 20036 Born in 1941 ----------------- ---------------- ----------------- ------------------------- Livio D. Board member Retired chair Cargill, Incorporated DeSimone since 2001 of the board (commodity merchants 30 Seventh and chief and processors), Target Street executive Corporation (department St. Paul, MN officer, stores), General Mills, 55101-4901 Minnesota Inc. (consumer foods) Born in 1936 Mining and and Vulcan Materials Manufacturing Company (construction (3M) materials/chemicals) ----------------- ---------------- ----------------- ------------------------- Ira D. Hall Board member Treasurer, Texaco, Inc. since 2001 Texaco Inc. 2000 since 1998. Westchester Prior to that, Avenue director, White Plains, NY International 10650 Operations IBM Born in 1944 Corp. ----------------- ---------------- ----------------- ------------------------- Heinz F. Hutter Board member Retired P.O. Box 2187 since 1994 president and Minneapolis, MN chief operating 55402 officer, Born in 1929 Cargill, Incorporated (commodity merchants and processors) ----------------- ---------------- ----------------- ------------------------- Anne P. Jones Board member Attorney and Motorola, Inc. 5716 Bent since 1985 telecommunications (electronics) Branch Rd. consultant Bethesda, MD 20816 Born in 1935 ----------------- ---------------- ----------------- ------------------------- William R. Board member RII Pearce since 1980 Weyerhaeuser 2050 One World Financial Plaza Timberfund, Minneapolis, MN L.P. (develops 55402 timber Born in 1927 resources) - management committee; Former chair, American Express Funds -------------------------------------------------------------------------------- 10 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT Independent Board Members Name, address, Position held Principal Other directorships age with occupations Registrant and during past length of five years service ----------------- ---------------- ----------------- ------------------------- Alan K. Simpson Board member Former Biogen, Inc. 1201 Sunshine since 1997 three-term (bio-pharmaceuticals) Ave. United States Cody, WY 82414 Senator for Born in 1931 Wyoming ----------------- ---------------- ----------------- ------------------------- C. Angus Board member Retired chair The Valspar Corporation Wurtele since 1994 of the board (paints), Bemis Suite 1700, and chief Corporation (packaging) Foshay Tower executive Minneapolis, MN officer, The 55402 Valspar Born in 1934 Corporation ----------------- ---------------- ----------------- ------------------------- Board Members Affiliated with American Express Financial Corporation (AEFC) Name, address, Position held Principal Other directorships age with occupations Registrant and during past length of five years service ----------------- ---------------- ----------------- ------------------------- David R. Hubers Board member Retired chief Chronimed Inc. 50643 AXP since 1993 executive (specialty Financial officer, pharmaceutical Center director and distribution) RTW Inc. Minneapolis, MN chair of the (manages workers 55474 board of AEFC compensation programs) Born in 1943 Lawson Software, Inc. (technology based business applications) ----------------- ---------------- ----------------- ------------------------- John R. Thomas Board member Senior vice 50652 AXP since 1987, president - Financial president information and Center since 1997 technology of Minneapolis, MN AEFC 55474 Born in 1937 ----------------- ---------------- ----------------- ------------------------- The board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the board. In addition to Mr. Thomas, who is president, the Fund's other officers are: Other Officers Name, address, Position held Principal Other directorships age with occupations Registrant and during past length of five years service ----------------- ---------------- ----------------- ------------------------- John M. Knight Treasurer Vice president 50005 AXP since 1999 - investment Financial accounting of Center AEFC Minneapolis, MN 55474 Born in 1952 ----------------- ---------------- ----------------- ------------------------- Leslie L. Ogg Vice President of 901 S. president, Board Services Marquette Ave. general Corporation Minneapolis, MN counsel and 55402 secretary Born in 1938 since 1978 ----------------- ---------------- ----------------- ------------------------- Frederick C. Vice president Senior vice Quirsfeld since 1998 president - 53609 AXP fixed income of Financial AEFC Center Minneapolis, MN 55474 Born in 1947 ----------------- ---------------- ----------------- ------------------------- The SAI has additional information about the Fund's directors and is available, without charge, upon request by calling (800) 862-7919. -------------------------------------------------------------------------------- 11 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT Independent Auditors' Report THE BOARD AND SHAREHOLDERS AXP NEW DIMENSIONS FUND, INC. We have audited the accompanying statement of assets and liabilities, including the schedule of investments in securities, of AXP Growth Dimensions Fund (a series of AXP New Dimensions Fund, Inc.) as of July 31, 2001, the related statement of operations for the year then ended and the statements of changes in net assets and the financial highlights for the year ended July 31, 2001 and for the period from June 26, 2000 (when shares became publicly available) to July 31, 2000. These financial statements and the financial highlights are the responsibility of fund management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of July 31, 2001, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of AXP Growth Dimensions Fund as of July 31, 2001, and the results of its operations, changes in its net assets and the financial highlights for each of the periods stated in the first paragraph above, in conformity with accounting principles generally accepted in the United States of America. KPMG LLP Minneapolis, Minnesota September 7, 2001 -------------------------------------------------------------------------------- 12 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT Financial Statements
Statement of assets and liabilities AXP Growth Dimensions Fund July 31, 2001 Assets Investments in securities, at value (Note 1) (identified cost $419,293,667) $ 347,395,177 Cash in bank on demand deposit 527,503 Capital shares receivable 6,700 Dividends receivable 24,163 ------ Total assets 347,953,543 ----------- Liabilities Payable for investment securities purchased 927,950 Accrued investment management services fee 4,838 Accrued distribution fee 4,748 Accrued transfer agency fee 1,491 Accrued administrative services fee 286 Other accrued expenses 177,187 ------- Total liabilities 1,116,500 --------- Net assets applicable to outstanding capital stock $ 346,837,043 ============= Represented by Capital stock -- $.01 par value (Note 1) $ 1,263,321 Additional paid-in capital 521,644,284 Accumulated net realized gain (loss) (Note 6) (104,172,072) Unrealized appreciation (depreciation) on investments (71,898,490) ----------- Total -- representing net assets applicable to outstanding capital stock $ 346,837,043 ============= Net assets applicable to outstanding shares: Class A $ 232,219,498 Class B $ 108,681,158 Class C $ 5,894,743 Class Y $ 41,644 Net asset value per share of outstanding capital stock: Class A shares 84,353,327 $ 2.75 Class B shares 39,805,125 $ 2.73 Class C shares 2,158,512 $ 2.73 Class Y shares 15,109 $ 2.76 ------ -------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 13 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT
Statement of operations AXP Growth Dimensions Fund Year ended July 31, 2001 Investment income Income: Dividends $ 1,225,692 Interest 1,528,750 Less foreign taxes withheld (8,499) ------ Total income 2,745,943 --------- Expenses (Note 2): Investment management services fee 1,354,637 Distribution fee Class A 471,955 Class B 908,641 Class C 47,672 Transfer agency fee 544,180 Incremental transfer agency fee Class A 39,456 Class B 33,972 Class C 2,374 Service fee -- Class Y 47 Administrative services fees and expenses 85,654 Compensation of board members 7,675 Custodian fees 70,140 Printing and postage 129,558 Registration fees 310,272 Audit fees 14,250 Other 9,833 ----- Total expenses 4,030,316 Expenses reimbursed by AEFC (Note 2) (98,681) ------- 3,931,635 Earnings credits on cash balances (Note 2) (7,260) ------ Total net expenses 3,924,375 --------- Investment income (loss) -- net (1,178,432) ---------- Realized and unrealized gain (loss) -- net Net realized gain (loss) on: Security transactions (Note 3) (104,531,754) Futures contracts 43,791 Options contracts written (Note 5) 394,677 ------- Net realized gain (loss) on investments (104,093,286) Net change in unrealized appreciation (depreciation) on investments (70,556,768) ----------- Net gain (loss) on investments (174,650,054) ------------ Net increase (decrease) in net assets resulting from operations $(175,828,486) =============
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 14 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT
Statements of changes in net assets AXP Growth Dimensions Fund July 31, 2001 For the period from Year ended June 26, 2000* to July 31, 2000 Operations and distributions Investment income (loss) -- net $ (1,178,432) $ 3,048 Net realized gain (loss) on investments (104,093,286) (78,786) Net change in unrealized appreciation (depreciation) on investments (70,556,768) (1,256,420) ----------- ---------- Net increase (decrease) in net assets resulting from operations (175,828,486) (1,332,158) ------------ ---------- Distributions to shareholders from: Net investment income Class A (15,831) -- Class Y (1) -- -- --- Total distributions (15,832) -- ------- --- Capital share transactions (Note 4) Proceeds from sales Class A shares (Note 2) 391,327,318 23,019,499 Class B shares 181,122,125 11,936,355 Class C shares 9,103,911 900,379 Class Y shares 97,543 2,031 Reinvestment of distributions at net asset value Class A shares 15,759 -- Payments for redemptions Class A shares (64,849,858) (5,285,584) Class B shares (Note 2) (27,010,710) (203,420) Class C shares (Note 2) (1,044,602) (5,888) Class Y shares (30,799) -- ------- ------- Increase (decrease) in net assets from capital share transactions 488,730,687 30,363,372 ----------- ---------- Total increase (decrease) in net assets 312,886,369 29,031,214 Net assets at beginning of year (Note 1) 33,950,674 4,919,460** ---------- --------- Net assets at end of year $ 346,837,043 $ 33,950,674 ============= ============= Undistributed net investment income $ -- $ 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. -------------------------------------------------------------------------------- 15 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT Notes to Financial Statements AXP Growth Dimensions Fund 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, liabilities and contingent 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. -------------------------------------------------------------------------------- 16 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT 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. -------------------------------------------------------------------------------- 17 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT 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. On the statement of assets and liabilities, as a result of permanent book-to-tax differences, undistributed net investment income has been increased by $1,178,462 resulting in a net reclassification adjustment to decrease paid-in capital by $1,178,462. 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 based on the combined net assets of the Fund and AXP New Dimensions Fund. 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 the Fund to the Lipper Large-Cap Growth 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 adjustment decreased the fee by $82,308 for the year ended July 31, 2001. -------------------------------------------------------------------------------- 18 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT Under an Administrative Services Agreement, the Fund pays AEFC a fee for administration and accounting services at a percentage of the Fund's average daily net 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 $2,705,120 for Class A, $93,668 for Class B and $3,734 for Class C for the year ended July 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. In addition, for the year ended July 31, 2001, AEFC and American Express Financial Advisors Inc. further voluntarily agreed to waive certain fees and expenses to 1.12% for Class A, 1.89% for Class B, 1.89% for Class C and 0.95% for Class Y. During the year ended July 31, 2001, the Fund's custodian and transfer agency fees were reduced by $7,260 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. -------------------------------------------------------------------------------- 19 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT 3. SECURITIES TRANSACTIONS Cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated $639,597,074 and $173,074,193, respectively, for the year ended July 31, 2001. Realized gains and losses are determined on an identified cost basis. Brokerage commissions paid to brokers affiliated with AEFC were $18,750 for the year ended July 31, 2001. Income from securities lending amounted to $10,820 for the year ended July 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. 4. CAPITAL SHARE TRANSACTIONS Transactions in shares of capital stock for the periods indicated are as follows:
Year ended July 31, 2001 Class A Class B Class C Class Y Sold 100,323,533 46,329,228 2,304,048 22,229 Issued for reinvested distributions 4,529 -- -- -- Redeemed (20,463,920) (8,824,909) (321,927) (8,116) ----------- ---------- -------- ------ Net increase (decrease) 79,864,142 37,504,319 1,982,121 14,113 ---------- ---------- --------- ------ 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. 5. OPTIONS CONTRACTS WRITTEN Contracts and premium amounts associated with options contracts written are as follows:
Year ended July 31, 2001 Puts Calls Contracts Premium Contracts Premium Balance July 31, 2000 -- $ -- -- $ -- Opened 1,800 419,686 2,000 581,480 Closed -- -- (1,600) (402,686) Exercised (1,400) (325,889) -- -- Expired (400) (93,797) (400) (178,794) ---- ------- ---- -------- Balance July 31, 2001 -- $ -- -- $ -- ---- -------- ---- --------
See "Summary of significant accounting policies." -------------------------------------------------------------------------------- 20 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT 6. CAPITAL LOSS CARRY-OVER For federal income tax purposes, the Fund has a capital loss carry-over of $101,605,932 as of July 31, 2001, that if not offset by subsequent capital gains, will expire in 2008 through 2010. 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. 7. 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 year ended July 31, 2001. 8. 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. -------------------------------------------------------------------------------- 21 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT 9. FINANCIAL HIGHLIGHTS The tables below show certain important financial information for evaluating the Fund's results.
Class A Per share income and capital changes(a) Fiscal period ended July 31, 2001 2000(b) Net asset value, beginning of period $ 4.87 $4.92 ------ ----- Income from investment operations: Net investment income (loss) (.01) -- Net gains (losses) (both realized and unrealized) (2.11) (.05) ----- ---- Total from investment operations (2.12) (.05) ----- ---- Net asset value, end of period $ 2.75 $4.87 ------ ----- Ratios/supplemental data Net assets, end of period (in millions) $232 $22 ---- --- Ratio of expenses to average daily net assets(c) 1.12%(d) 1.10%(d),(h) ---- ---- Ratio of net investment income (loss) to average daily net assets (.16%) .37%(h) ---- --- Portfolio turnover rate (excluding short-term securities) 67% 2% -- - Total return(i) (43.53%) (1.02%) ------ ----- Class B Per share income and capital changes(a) Fiscal period ended July 31, 2001 2000(b) Net asset value, beginning of period $ 4.87 $4.92 ------ ----- Income from investment operations: Net investment income (loss) (.02) -- Net gains (losses) (both realized and unrealized) (2.12) (.05) ----- ---- Total from investment operations (2.14) (.05) ----- ---- Net asset value, end of period $ 2.73 $4.87 ------ ----- Ratios/supplemental data Net assets, end of period (in millions) $109 $11 ---- --- Ratio of expenses to average daily net assets(c) 1.89%(e) 1.91%(e),(h) ---- ---- Ratio of net investment income (loss) to average daily net assets (.92%) (.48%)(h) ---- ---- Portfolio turnover rate (excluding short-term securities) 67% 2% -- - Total return(i) (43.94%) (1.02%) ------ -----
-------------------------------------------------------------------------------- 22 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT
Class C Per share income and capital changes(a) Fiscal period ended July 31, 2001 2000(b) Net asset value, beginning of period $ 4.87 $4.92 ------ ----- Income from investment operations: Net investment income (loss) (.02) -- Net gains (losses) (both realized and unrealized) (2.12) (.05) ----- ---- Total from investment operations (2.14) (.05) ----- ---- Net asset value, end of period $ 2.73 $4.87 ------ ----- Ratios/supplemental data Net assets, end of period (in millions) $6 $1 -- -- Ratio of expenses to average daily net assets(c) 1.89%(f) 1.91%(f),(h) ---- ---- Ratio of net investment income (loss) to average daily net assets (.94%) (.48%)(h) ---- ---- Portfolio turnover rate (excluding short-term securities) 67% 2% -- - Total return(i) (43.94%) (1.02%) ------ ----- Class Y Per share income and capital changes(a) Fiscal period ended July 31, 2001 2000(b) 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) (2.12) (.04) ----- ---- Total from investment operations (2.12) (.04) ----- ---- Net asset value, end of period $ 2.76 $4.88 ------ ----- Ratios/supplemental data Net assets, end of period (in millions) $-- $-- ------ ----- Ratio of expenses to average daily net assets(c) .95%(g) .81%(g),(h) --- --- Ratio of net investment income (loss) to average daily net assets (.03%) .58%(h) ---- --- Portfolio turnover rate (excluding short-term securities) 67% 2% -- - Total return(i) (43.44%) (.81%) ------ ----
See accompanying notes to financial highlights. -------------------------------------------------------------------------------- 23 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT Notes to financial highlights (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) For the period from June 26, 2000 (when shares became publicly available) to July 31, 2000. (c) Expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. (d) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses for Class A would have been 1.16% and 2.32% for the year ended July 31, 2001 and for the period ended July 31, 2000, respectively. (e) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses for Class B would have been 1.92% and 3.40% for the year ended July 31, 2001 and for the period ended July 31, 2000, respectively. (f) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses for Class C would have been 1.92% and 3.40% for the year ended July 31, 2001 and for the period ended July 31, 2000, respectively. (g) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses for Class Y would have been 1.00% and 2.12% for the year ended July 31, 2001 and for the period ended July 31, 2000, respectively. (h) Adjusted to an annual basis. (i) Total return does not reflect payment of a sales charge. -------------------------------------------------------------------------------- 24 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT Investments in Securities AXP Growth Dimensions Fund July 31, 2001 (Percentages represent value of investments compared to net assets) Common stocks (93.4%) Issuer Shares Value(a) Airlines (0.7%) Southwest Airlines 130,000 $2,601,300 Banks and savings & loans (8.0%) Bank of America 120,000 7,634,400 Fifth Third Bancorp 110,000 6,932,200 FleetBoston Financial 90,000 3,376,800 U.S. Bancorp 215,050 5,105,287 Wells Fargo 50,000 2,303,000 Zions Bancorp 40,000 2,338,000 Total 27,689,687 Beverages & tobacco (1.2%) Coca-Cola 90,000 4,014,000 Communications equipment & services (3.8%) American Tower Cl A 180,000(b) 3,051,000 Brocade Communications Systems 130,000(b) 4,282,200 Finisar 190,000(b) 2,192,600 Nokia ADR Cl A 110,000(c) 2,399,100 Sonus Networks 50,000(b) 1,097,000 Total 13,021,900 Computer software & services (7.2%) BEA Systems 120,000(b) 2,646,000 Electronic Arts 60,000(b) 3,415,200 Microsoft 200,000(b) 13,238,000 PeopleSoft 30,000(b) 1,310,100 VERITAS Software 100,000(b) 4,241,000 Total 24,850,300 Computers & office equipment (9.3%) AOL Time Warner 220,000(b) 9,999,000 Cisco Systems 620,000(b) 11,916,400 EMC 270,000(b) 5,324,400 Juniper Networks 20,000(b) 513,800 Sanmina 205,000(b) 4,458,750 Total 32,212,350 Electronics (7.6%) Applied Materials 60,000(b) 2,751,600 Applied Micro Circuits 30,000(b) 514,200 Intel 240,000 7,154,400 Jabil Circuit 140,000(b) 4,550,000 KLA-Tencor 40,000(b) 2,175,600 Maxim Integrated Products 80,000(b) 3,693,600 Texas Instruments 160,000 5,520,000 Total 26,359,400 Energy (0.9%) Mirant 100,000(b) 3,093,000 Energy equipment & services (2.0%) Schlumberger 80,000 4,300,000 Transocean Sedco Forex 80,000 2,583,200 Total 6,883,200 Financial services (6.7%) Citigroup 220,000 11,046,200 Lehman Brothers Holdings 45,000 3,240,000 MBNA 30,000 1,062,000 Merrill Lynch 45,000 2,440,800 Paychex 100,000 3,930,000 Schwab (Charles) 110,000 1,648,900 Total 23,367,900 Health care (13.2%) Amgen 120,000(b) 7,525,200 Baxter Intl 30,000 1,494,000 Genentech 80,000(b) 3,384,000 Invitrogen 90,000(b) 5,762,700 Medtronic 290,000 13,928,700 Pfizer 260,000 10,717,200 Pharmacia 70,000 3,123,400 Total 45,935,200 Health care services (1.2%) AmeriSource Health Cl A 70,000(b) 4,069,800 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 25 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT Common stocks (continued) Issuer Shares Value(a) Insurance (4.0%) ACE 110,000(c) $3,840,100 American Intl Group 120,000 9,990,000 Total 13,830,100 Leisure time & entertainment (3.2%) Harley-Davidson 65,000 3,354,650 Viacom Cl B 155,000(b) 7,719,000 Total 11,073,650 Media (3.5%) Clear Channel Communications 90,000(b) 5,274,000 Sony ADR 60,000(c) 2,971,200 USA Networks 140,000(b) 3,921,400 Total 12,166,600 Metals (0.8%) Alcan Aluminum 70,000(c) 2,625,700 Multi-industry conglomerates (10.5%) General Electric 350,000 15,225,000 Minnesota Mining & Mfg 35,000 3,915,800 Robert Half Intl 165,000(b) 4,298,250 Symyx Technologies 130,000(b) 3,055,000 Tyco Intl 185,000(c) 9,842,000 Total 36,336,050 Restaurants & lodging (1.2%) Marriott Intl Cl A 90,000 4,297,500 Retail (5.3%) Best Buy 60,000(b) 4,017,600 Gap 70,000 1,911,700 Home Depot 85,000 4,281,450 Safeway 130,000(b) 5,740,800 Target 60,000 2,322,000 Total 18,273,550 Utilities -- electric (0.3%) Calpine 30,000(b) 1,079,700 Utilities -- gas (2.0%) Dynegy Cl A 150,000 6,957,000 Utilities -- telephone (0.9%) Verizon Communications 60,000 3,249,000 Total common stocks (Cost: $395,880,382) $323,986,887 Short-term securities (6.7%) Issuer Annualized Amount Value(a) yield on date payable at of purchase maturity U.S. government agencies (6.5%) Federal Home Loan Bank Disc Nts 08-03-01 3.79% $1,700,000 $1,699,446 08-15-01 3.67 2,300,000 2,296,492 08-22-01 3.60 1,500,000 1,496,590 09-07-01 3.60 1,400,000 1,394,215 09-19-01 3.55 1,100,000 1,094,332 10-19-01 3.55 2,500,000 2,479,611 Federal Home Loan Mtge Corp Disc Nts 08-21-01 3.54 3,800,000 3,792,175 09-11-01 3.64 1,300,000 1,294,502 09-20-01 3.65 3,000,000 2,983,974 Federal Natl Mtge Assn Disc Nts 09-10-01 3.56 2,200,000 2,191,105 09-13-01 3.66 1,900,000 1,891,149 Total 22,613,591 Commercial paper (0.2%) CIT Group Holdings 10-04-01 3.74 800,000 794,699 Total short-term securities (Cost: $23,413,285) $23,408,290 Total investments in securities (Cost: $419,293,667)(d) $347,395,177 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 26 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT 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 July 31, 2001, the value of foreign securities represented 6.25% of net assets. (d) At July 31, 2001, the cost of securities for federal income tax purposes was $421,859,807 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 9,967,645 Unrealized depreciation (84,432,275) ----------- Net unrealized depreciation $(74,464,630) ------------ -------------------------------------------------------------------------------- 27 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT 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 Growth Dimensions Fund Year ended July 31, 2001 Class A Income distribution taxable as dividend income, none qualifying for deduction by corporations. Payable date Per share Dec. 21, 2000 $0.00021 Class Y Income distribution taxable as dividend income, none qualifying for deduction by corporations. Payable date Per share Dec. 21, 2000 $0.00007 -------------------------------------------------------------------------------- 28 AXP GROWTH DIMENSIONS FUND -- ANNUAL REPORT AXP Growth Dimensions Fund PRSRT STD AUTO 70100 AXP Financial Center U.S. POSTAGE Minneapolis, MN 55474 PAID AMERICAN americanexpress.com EXPRESS Ticker Symbol Class A: AXDAX Class B: ABGDX Class C: AXGDX Class Y: N/A 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. (logo) American Express S-6004 D (9/01)