-----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, E1sVXi0kaTNVQZQ7we8sw5IBlBXm17AGj2UrDI98EhKSyHAd51UkqdP2l1N9e9xo u8x7BaXhMn5FlOEhELfYwg== 0000820027-02-000236.txt : 20020415 0000820027-02-000236.hdr.sgml : 20020415 ACCESSION NUMBER: 0000820027-02-000236 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020131 FILED AS OF DATE: 20020404 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AXP NEW DIMENSIONS FUND INC /MN/ CENTRAL INDEX KEY: 0000049717 IRS NUMBER: 410940846 STATE OF INCORPORATION: MN FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-01629 FILM NUMBER: 02601761 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: IDS NEW DIMENSIONS FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: AXP NEW DIMENSIONS FUND INC/ DATE OF NAME CHANGE: 20000404 N-30D 1 s6441t.txt AXP NEW DIMENSIONS FUND AXP(R) New Dimensions Fund(R) 2002 SEMIANNUAL REPORT American Express Funds (icon of ruler) AXP New Dimensions Fund seeks to provide shareholders with long-term growth of capital. Fast-track Stocks Rising corporate profits and rising stock prices often go hand in hand. These "growth stocks," particularly the ones representing large companies, are what AXP New Dimensions Fund focuses on. The key for the Fund is to identify which companies not only have a record of strong profit growth, but which ones also have the potential to maintain it thanks to skillful management, marketing innovations and/or technological advances. CONTENTS From the Chairman.............................................3 Portfolio Managers' Q & A.....................................3 Fund Facts....................................................6 The 10 Largest Holdings.......................................7 Financial Statements (Fund)...................................8 Notes to Financial Statements (Fund).........................11 Financial Statements (Portfolio).............................17 Notes to Financial Statements (Portfolio)....................19 Investments in Securities....................................22 - -------------------------------------------------------------------------------- 2 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT (picture of Arne H. Carlson0 Arne H. Carlson Chairman of the board From the Chairman For most of us investors, the past several months proved to be an extremely trying time. More recently, the events of this past September and the prospect of what may follow have added to our collective concern. While nothing can change what has happened, we can control how we respond. In broad terms, I would strongly advise that you keep a focus on your long-term financial goals and not let specific events dictate your investment decisions. Ultimately, it is where you finish, not where you are at the moment, that matters most. Your financial advisor plays an essential role in this process, so please let him or her help you by reviewing your situation and plotting the proper investment course. As I have indicated in the past, the role our Board plays in your financial future is to monitor and confirm that each American Express mutual fund meets its investment objective and that its management style stays on target. We want each 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 Gordon M. Fines) Gordon M. Fines Senior portfolio manager Portfolio Managers' Q & A Q: How did the fund perform for the six-month period ended January 31, 2002? A: In another volatile period for the market, the Fund declined 5.36% (return for Class A shares excluding sales charges) for the six months. By comparison, the unmanaged Standard & Poor's 500 Index and the unmanaged Lipper Large-Cap Growth Funds Index return(e)d -6.04% and -7.22%, respectively, during the six-month period. - -------------------------------------------------------------------------------- 3 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT (picture of Doug Guffy) Doug Guffy Portfolio manager* (picture of Anne Obermeyer) Anne Obermeyer Portfolio manager* Q: What factors affected the Fund's performance during the six months? A: With the U.S. economy in a mild recession, the stock market found itself in the midst of another difficult year when we began the period in August 2001. That environment made it difficult for companies to reach profit expectations, and stocks suffered as a result. The situation was made worse in the wake of the September 11th terrorist attacks, as investors initially reacted negatively and began a significant selloff. But the pessimism proved to be short-lived, and stocks began to respond much more favorably beginning in late September. We saw growth stocks, the focus of this portfolio, respond particularly well. With investors becoming encouraged that the economy was about to rise out of its recessionary state, stocks moved higher through the end of 2001. Growing concern about possible fallout related to the collapse of Enron cast a pall over the entire market during the closing month of the period, January 2002. In that month, stocks gave up some of the gains they had made in the previous months. Q: What areas of the market worked well for the Fund and what detracted from performance? A: Technology stocks led the market's year-end rally, and we benefited in particular from our holdings in stocks such as Microsoft and IBM. Going into that period, we had de-emphasized technology stocks a bit, so the reduced weighting we maintained was somewhat detrimental to performance. Other names that performed well in the Fund included Wal-Mart Stores in the retail sector, and Pfizer among our health care holdings. By contrast, energy stocks such as Exxon Mobil and ChevronTexaco were among the weakest performers during the period. - -------------------------------------------------------------------------------- 4 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Q: What changes did you make to the portfolio over the past six months? A: We had shifted the portfolio to a more conservative stance during 2001. Given our concerns that many previously high-flying companies, particularly in the technology sector, still had to come back to earth in terms of their stock prices, it made sense to broaden the Fund's focus. We have been putting greater emphasis on companies that have solid earnings and, in some cases, pay a reasonable dividend to augment their price appreciation potential. We believe stocks such as these should be well-positioned with the market, as investors seem increasingly concerned about finding stocks of companies producing tangible results. As signs of a better economy appeared, we did take a slightly more aggressive posture, adding to our technology, health care and retail holdings. Many of these should benefit from a cyclical upturn in the economy. At the same time, we reduced the Fund's energy position, as this industry was struggling with an environment of reduced demand and lower prices. Q: What is your outlook going forward? A: While we agree with expectations that the U.S. economy will improve during 2002, it may be a long, slow process. The market rebounded strongly between late September and the end of 2001, but it may have grown too far too fast. It is possible that in the coming months we'll see little improvement in the market's fortunes until corporate profits begin to turn around more dramatically. In the current environment, we are cautious that a number of stocks are still priced quite high, and that profits have not yet caught up to expectations. It is reasonable to expect better results as 2002 progresses, but there is also reason for caution about setting expectations too high. If this is a "slow-motion" economic recovery as anticipated, the market's recovery is likely to follow a similar path. Gordon M. Fines Doug Guffy Anne Obermeyer * Doug Guffy and Anne Obermeyer assist with the management of the Fund. ------------------------------------------------------------------------------- 5 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Fund Facts Class A -- 6-month performance (All figures per share) Net asset value (NAV) Jan. 31, 2002 $24.05 July 31, 2001 $25.43 Decrease $ 1.38 Distributions -- Aug. 1, 2001 - Jan. 31, 2002 From income $ -- From long-term capital gains $ 0.02 Total distributions $ 0.02 Total return* -5.36% Class B -- 6-month performance (All figures per share) Net asset value (NAV) Jan. 31, 2002 $23.02 July 31, 2001 $24.44 Decrease $ 1.42 Distributions -- Aug. 1, 2001 - Jan. 31, 2002 From income $ -- From long-term capital gains $ 0.02 Total distributions $ 0.02 Total return* -5.74% Class C -- 6-month performance (All figures per share) Net asset value (NAV) Jan. 31, 2002 $23.00 July 31, 2001 $24.42 Decrease $ 1.42 Distributions -- Aug. 1, 2001 - Jan. 31, 2002 From income $ -- From long-term capital gains $ 0.02 Total distributions $ 0.02 Total return* -5.75% Class Y -- 6-month performance (All figures per share) Net asset value (NAV) Jan. 31, 2002 $24.14 July 31, 2001 $25.51 Decrease $ 1.37 Distributions -- Aug. 1, 2001 - Jan. 31, 2002 From income $ -- From long-term capital gains $ 0.02 Total distributions $ 0.02 Total return* -5.31% * 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. ------------------------------------------------------------------------------- 6 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT The 10 Largest Holdings Percent Value (of net assets) (as of Jan. 31, 2002) Citigroup 4.8% $1,042,800,000 Microsoft 3.5 764,520,000 General Electric 3.4 743,000,000 Wal-Mart Stores 3.3 719,760,000 Intl Business Machines 3.0 647,340,000 Pfizer 2.9 625,050,000 Exxon Mobil 2.7 585,750,000 American Intl Group 2.6 563,540,000 Intel 2.6 560,640,000 Morgan Stanley, Dean Witter & Co 2.3 495,000,000 For further detail about these holdings, please refer to the section entitled "Investments in Securities." (icon of pie chart) (icon of) pie chart The 10 holdings listed here make up 31.1% of net assets - -------------------------------------------------------------------------------- 7 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Financial Statements
Statement of assets and liabilities AXP New Dimensions Fund Jan. 31, 2002 (Unaudited) Assets Investment in Portfolio (Note 1) $21,813,206,537 Capital shares receivable 1,565,652 --------- Total assets 21,814,772,189 -------------- Liabilities Capital shares payable 72,498 Accrued distribution fee 214,409 Accrued service fee 11,403 Accrued transfer agency fee 88,337 Accrued administrative services fee 17,838 Other accrued expenses 965,652 ------- Total liabilities 1,370,137 --------- Net assets applicable to outstanding capital stock $21,813,402,052 =============== Represented by Capital stock -- $.01 par value (Note 1) $ 9,154,658 Additional paid-in capital 18,798,636,115 Undistributed net investment income 6,392,286 Accumulated net realized gain (loss) (Note 5) (1,043,256,360) Unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies 4,042,475,353 ------------- Total -- representing net assets applicable to outstanding capital stock $21,813,402,052 =============== Net assets applicable to outstanding shares: Class A $12,671,428,423 Class B $ 4,826,399,027 Class C $ 39,935,824 Class Y $ 4,275,638,778 Net asset value per share of outstanding capital stock: Class A shares 526,976,577 $ 24.05 Class B shares 209,644,866 $ 23.02 Class C shares 1,736,274 $ 23.00 Class Y shares 177,108,087 $ 24.14 ----------- ----------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 8 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT
Statement of operations AXP New Dimensions Fund Six months ended Jan. 31, 2002 (Unaudited) Investment income Income: Dividends $ 129,256,320 Interest 9,882,913 --------- Total income 139,139,233 ----------- Expenses (Note 2): Expenses allocated from Portfolio 69,966,628 Distribution fee Class A 15,981,888 Class B 24,056,160 Class C 166,563 Transfer agency fee 14,446,279 Incremental transfer agency fee Class A 865,620 Class B 734,119 Class C 8,757 Service fee -- Class Y 2,146,596 Administrative services fees and expenses 3,399,274 Compensation of board members 73,257 Printing and postage 1,009,250 Registration fees 173,675 Audit fees 5,750 Other 45,883 ------ Total expenses 133,079,699 Earnings credits on cash balances (Note 2) (332,752) -------- Total net expenses 132,746,947 ----------- Investment income (loss) -- net 6,392,286 --------- Realized and unrealized gain (loss) -- net Net realized gain (loss) on: Security transactions (367,004,569) Options contracts written 4,890,008 --------- Net realized gain (loss) on investments (362,114,561) Net change in unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies (969,145,573) ------------ Net gain (loss) on investments and foreign currencies (1,331,260,134) -------------- Net increase (decrease) in net assets resulting from operations $(1,324,867,848) ===============
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 9 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT
Statements of changes in net assets AXP New Dimensions Fund Jan. 31, 2002 July 31, 2001 Six months ended Year ended (Unaudited) Operations and distributions Investment income (loss) -- net $ 6,392,286 $ (3,797,962) Net realized gain (loss) on investments (362,114,561) (396,765,677) Net change in unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies (969,145,573) (6,106,468,726) ------------ -------------- Net increase (decrease) in net assets resulting from operations (1,324,867,848) (6,507,032,365) -------------- -------------- Distributions to shareholders from: Net investment income Class A -- (4,684,288) Class C -- (5,049) Class Y -- (3,219,986) Excess distribution of net investment income Class A -- (8,000,002) Class B -- (8,099) Class Y -- (5,165,393) Net realized gain Class A (8,632,075) (1,695,350,636) Class B (3,410,117) (639,365,263) Class C (26,003) (1,669,548) Class Y (2,903,050) (608,065,587) ---------- ------------ Total distributions (14,971,245) (2,965,533,851) ----------- -------------- Capital share transactions (Note 3) Proceeds from sales Class A shares (Note 2) 1,241,528,606 2,799,675,984 Class B shares 360,524,288 1,084,304,631 Class C shares 14,268,592 35,033,595 Class Y shares 590,751,009 1,444,980,459 Reinvestment of distributions at net asset value Class A shares 8,376,169 1,663,355,392 Class B shares 3,375,264 634,330,120 Class C shares 25,862 1,680,968 Class Y shares 2,894,341 616,450,966 Payments for redemptions Class A shares (1,663,549,193) (2,919,560,087) Class B shares (Note 2) (398,731,980) (738,588,995) Class C shares (Note 2) (2,741,183) (3,045,672) Class Y shares (736,882,244) (1,772,093,982) ------------ -------------- Increase (decrease) in net assets from capital share transactions (580,160,469) 2,846,523,379 ------------ ------------- Total increase (decrease) in net assets (1,919,999,562) (6,626,042,837) Net assets at beginning of period 23,733,401,614 30,359,444,451 -------------- -------------- Net assets at end of period $21,813,402,052 $23,733,401,614 =============== =============== Undistributed net investment income $ 6,392,286 $ -- --------------- ---------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 10 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Notes to Financial Statements AXP New Dimensions Fund (Unaudited as to Jan. 31, 2002) 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 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 level of 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. Investment in Growth Trends Portfolio The Fund invests all of its assets in the Growth Trends Portfolio (the Portfolio), a series of Growth Trust (the Trust), an open-end investment company that has the same objectives as the Fund. The Portfolio invests primarily in common stocks of companies showing potential for significant growth and operating in areas where economic or technological changes are occurring. The Fund records daily its share of the Portfolio's income, expenses and realized and unrealized gains and losses. The financial statements of the Portfolio are included elsewhere in this report and should be read in conjunction with the Fund's financial statements. The Fund records its investment in the Portfolio at the value that is equal to the Fund's proportionate ownership interest in the Portfolio's net assets. The percentage of the Portfolio owned by the Fund as of Jan. 31, 2002, was 99.99%. Valuation of securities held by the Portfolio is discussed in Note 1 of the Portfolio's "Notes to financial statements" (included elsewhere in this report). 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. - -------------------------------------------------------------------------------- 11 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT 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 the 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. 2. EXPENSES AND SALES CHARGES In addition to the expenses allocated from the Portfolio, the Fund accrues its own expenses as follows: The Fund has an agreement with American Express Financial Corporation (AEFC) to provide administrative services. 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 incremental transfer agency fee is the amount charged to the specific classes for the additional expense above the fee for Class Y. 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. - -------------------------------------------------------------------------------- 12 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Sales charges received by the Distributor for distributing Fund shares were $11,954,056 for Class A, $2,510,445 for Class B and $6,317 for Class C for the six months ended Jan. 31, 2002. During the six months ended Jan. 31, 2002, the Fund's transfer agency fees were reduced by $332,752 as a result of earnings credits from overnight cash balances. 3. CAPITAL SHARE TRANSACTIONS Transactions in shares of capital stock for the periods indicated are as follows:
Six months ended Jan. 31, 2002 Class A Class B Class C Class Y Sold 52,031,963 15,829,796 628,235 24,722,316 Issued for reinvested distributions 343,444 144,398 1,107 118,222 Redeemed (70,286,562) (17,803,405) (120,898) (31,066,326) ----------- ----------- -------- ----------- Net increase (decrease) (17,911,155) (1,829,211) 508,444 (6,225,788) ----------- ---------- ------- ---------- Year ended July 31, 2001 Class A Class B Class C Class Y Sold 93,773,746 37,048,347 1,209,696 47,427,537 Issued for reinvested distributions 59,624,370 23,558,366 62,467 22,063,387 Redeemed (98,821,564) (26,640,422) (112,649) (60,345,820) ----------- ----------- -------- ----------- Net increase (decrease) 54,576,552 33,966,291 1,159,514 9,145,104 ---------- ---------- --------- ---------
4. 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, 2002. 5. CAPITAL LOSS CARRY-OVER For federal income tax purposes, the Fund has a capital loss carry-over of $628,241,291 as of July 31, 2001, that will expire in 2010 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. - ------------------------------------------------------------------------------- 13 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT 6. 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, 2002(f) 2001 2000 1999 1998 Net asset value, beginning of period $25.43 $36.26 $31.21 $27.59 $25.69 ------ ------ ------ ------ ------ Income from investment operations: Net investment income (loss) .02 .02 .02 .06 .13 Net gains (losses) (both realized and unrealized) (1.38) (7.37) 7.14 5.31 3.67 ----- ----- ---- ---- ---- Total from investment operations (1.36) (7.35) 7.16 5.37 3.80 ----- ----- ---- ---- ---- Less distributions: Dividends from net investment income -- (.01) (.05) (.06) (.17) Excess distributions from net investment income -- (.01) -- -- -- Distributions from realized gains (0.02) (3.46) (2.06) (1.69) (1.73) ----- ----- ----- ----- ----- Total distributions (0.02) (3.48) (2.11) (1.75) (1.90) ----- ----- ----- ----- ----- Net asset value, end of period $24.05 $25.43 $36.26 $31.21 $27.59 ------ ------ ------ ------ ------ Ratios/supplemental data Net assets, end of period (in millions) $12,671 $13,857 $17,777 $13,568 $10,559 ------- ------- ------- ------- ------- Ratio of expenses to average daily net assets(c) 1.08%(d) 1.00% .90% .86% .82% ---- ---- --- --- --- Ratio of net investment income (loss) to average daily net assets .20%(d) .12% .19% .24% .55% --- --- --- --- --- Portfolio turnover rate (excluding short-term securities) 12% 29% 34% 34% 38% -- -- -- -- -- Total return(e) (5.36%) (21.10%) 23.16% 20.04% 16.19% ----- ------ ----- ----- ----- Class B Per share income and capital changes(a) Fiscal period ended July 31, 2002(f) 2001 2000 1999 1998 Net asset value, beginning of period $24.44 $35.22 $30.54 $27.19 $25.38 ------ ------ ------ ------ ------ Income from investment operations: Net investment income (loss) (.07) (.13) (.24) (.10) -- Net gains (losses) (both realized and unrealized) (1.33) (7.19) 6.98 5.14 3.57 ----- ----- ---- ---- ---- Total from investment operations (1.40) (7.32) 6.74 5.04 3.57 ----- ----- ---- ---- ---- Less distributions: Dividends from net investment income -- -- -- -- (.03) Distributions from realized gains (.02) (3.46) (2.06) (1.69) (1.73) ---- ----- ----- ----- ----- Total distributions (.02) (3.46) (2.06) (1.69) (1.76) ---- ----- ----- ----- ----- Net asset value, end of period $23.02 $24.44 $35.22 $30.54 $27.19 ------ ------ ------ ------ ------ Ratios/supplemental data Net assets, end of period (in millions) $4,826 $5,169 $6,252 $4,070 $2,515 ------ ------ ------ ------ ------ Ratio of expenses to average daily net assets(c) 1.84%(d) 1.76% 1.66% 1.63% 1.58% ---- ---- ---- ---- ---- Ratio of net investment income (loss) to average daily net assets (.57%)(d) (.65%) (.57%) (.53%) (.23%) ---- ---- ---- ---- ---- Portfolio turnover rate (excluding short-term securities) 12% 29% 34% 34% 38% -- -- -- -- -- Total return(e) (5.74%) (21.69%) 22.20% 19.13% 15.31% ----- ------ ----- ----- -----
See accompanying notes to financial highlights. - -------------------------------------------------------------------------------- 14 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT
Class C Per share income and capital changes(a) Fiscal period ended July 31, 2002(f) 2001 2000(b) Net asset value, beginning of period $24.42 $35.23 $35.52 ------ ------ ------ Income from investment operations: Net investment income (loss) (.05) (.13) (.01) Net gains (losses) (both realized and unrealized) (1.35) (7.19) (.28) ----- ----- ---- Total from investment operations (1.40) (7.32) (.29) ----- ----- ---- Less distributions: Dividends from net investment income -- (.02) -- Excess distributions from net investment income -- (.01) -- Distributions from realized gains (.02) (3.46) -- ---- ----- --- Total distributions (.02) (3.49) -- ---- ----- --- Net asset value, end of period $23.00 $24.42 $35.23 ------ ------ ------ Ratios/supplemental data Net assets, end of period (in millions) $40 $30 $2 --- --- -- Ratio of expenses to average daily net assets(c) 1.86%(d) 1.76% 1.66%(d) ---- ---- ---- Ratio of net investment income (loss) to average daily net assets (.60%)(d) (.75%) (.74%)(d) ---- ---- ---- Portfolio turnover rate (excluding short-term securities) 12% 29% 34% -- -- -- Total return(e) (5.75%) (21.70%) (.82%) ----- ------ ----
Class Y Per share income and capital changes(a) Fiscal period ended July 31, 2002(f) 2001 2000 1999 1998 Net asset value, beginning of period $25.51 $36.33 $31.24 $27.62 $25.72 ------ ------ ------ ------ ------ Income from investment operations: Net investment income (loss) .04 .07 .05 .09 .15 Net gains (losses) (both realized and unrealized) (1.39) (7.38) 7.19 5.30 3.68 ----- ----- ---- ---- ---- Total from investment operations (1.35) (7.31) 7.24 5.39 3.83 ----- ----- ---- ---- ---- Less distributions: Dividends from net investment income -- (.02) (.09) (.08) (.20) Excess distributions from net investment income -- (.03) -- -- -- Distributions from realized gains (.02) (3.46) (2.06) (1.69) (1.73) ---- ----- ----- ----- ----- Total distributions (.02) (3.51) (2.15) (1.77) (1.93) ---- ----- ----- ----- ----- Net asset value, end of period $24.14 $25.51 $36.33 $31.24 $27.62 ------ ------ ------ ------ ------ Ratios/supplemental data Net assets, end of period (in millions) $4,276 $4,677 $6,328 $5,513 $4,575 ------ ------ ------ ------ ------ Ratio of expenses to average daily net assets(c) .91%(d) .84% .74% .77% .75% --- --- --- --- --- Ratio of net investment income (loss) to average daily net assets .36%(d) .28% .35% .33% .62% --- --- --- --- --- Portfolio turnover rate (excluding short-term securities) 12% 29% 34% 34% 38% -- -- -- -- -- Total return(e) (5.31%) (20.97%) 23.35% 20.12% 16.28% ----- ------ ----- ----- -----
See accompanying notes to financial highlights. - -------------------------------------------------------------------------------- 15 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Notes to financial highlights (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) Inception date was June 26, 2000. (d) Expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. (e) Adjusted to an annual basis. (f) Total return does not reflect payment of a sales charge. (f) Six months ended Jan. 31, 2002 (Unaudited). - -------------------------------------------------------------------------------- 16 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Financial Statements
Statement of assets and liabilities Growth Trends Portfolio Jan. 31, 2002 (Unaudited) Assets Investments in securities at value, (Note 1)* (identified cost $17,625,794,656) $21,665,843,001 Dividends and accrued interest receivable 17,476,366 Receivable for investment securities sold 207,901,053 U.S. government securities held as collateral (Note 4) 1,852,144 --------- Total assets 21,893,072,564 ============== Liabilities Disbursements in excess of cash on demand deposit 906,145 Payable for investment securities purchased 73,032,800 Payable upon return of securities loaned (Note 4) 4,504,144 Accrued investment management services fee 296,849 Other accrued expenses 198,933 Options contracts written, at value (premiums received $3,293,776) (Note 5) 855,000 ------- Total liabilities 79,793,871 ---------- Net assets $21,813,278,693 =============== *Including securities on loan, at value (Note 4) $ 4,327,140 ---------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 17 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Statement of operations Growth Trends Portfolio
Six months ended Jan. 31, 2002 (Unaudited) Investment income Income: Dividends $ 129,256,743 Interest 9,882,033 --------- Total income 139,138,776 ----------- Expenses (Note 2): Investment management services fee 69,119,882 Compensation of board members 41,643 Custodian fees 655,324 Audit fees 17,250 Other 145,456 ------- Total expenses 69,979,555 Earnings credits on cash balances (Note 2) (12,699) ------- Total net expenses 69,966,856 ---------- Investment income (loss) -- net 69,171,920 ---------- Realized and unrealized gain (loss) -- net Net realized gain (loss) on: Security transactions (Note 3) (367,012,661) Options contracts written (Note 5) 4,890,008 --------- Net realized gain (loss) on investments (362,122,653) Net change in unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies (969,141,646) ----------- Net gain (loss) on investments (1,331,264,299) -------------- Net increase (decrease) in net assets resulting from operations (1,262,092,379) ==============
Statements of changes in net assets Growth Trends Portfolio Jan. 31, 2002 July 31, 2001 Six months ended Year ended (Unaudited) Operations Investment income (loss) -- net $ 69,171,920 $ 140,932,561 Net realized gain (loss) on investments (362,122,653) (396,793,889) Net change in unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies (969,141,646) (6,106,460,902) ------------ -------------- Net increase (decrease) in net assets resulting from operations (1,262,092,379) (6,362,322,230) -------------- -------------- Proceeds from contributions 609,381,011 1,408,932,058 Fair value of withdrawals (1,268,653,252) (1,673,744,904) -------------- -------------- Net contributions (withdrawals) from partners (659,272,241) (264,812,846) ------------ ------------ Total increase (decrease) in net assets (1,921,364,620) (6,627,135,076) Net assets at beginning of period 23,734,643,313 30,361,778,389 -------------- -------------- Net assets at end of period $21,813,278,693 $23,734,643,313 =============== ===============
See accompanying notes to financial statements. - ------------------------------------------------------------------------------- 18 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Notes to Financial Statements Growth Trends Portfolio (Unaudited as to Jan. 31, 2002) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Growth Trends Portfolio (the Portfolio) is a series of Growth Trust (the Trust) and is registered under the Investment Company Act of 1940 (as amended) as a diversified, open-end management investment company. Growth Trends Portfolio invests primarily in common stocks of U.S. and foreign companies showing potential for significant growth and operating in areas where economic or technological changes are occurring. The Declaration of Trust permits the Trustees to issue non-transferable interests in the Portfolio. The Portfolio'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. Option transactions To produce incremental earnings, protect gains and facilitate buying and selling of securities for investments, the Portfolio 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 Portfolio 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 Portfolio gives up the opportunity for profit if the market price of the security increases. The risk in writing a put option is that the Portfolio 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 Portfolio pays a premium whether or not the option is exercised. The Portfolio 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 Portfolio 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. - -------------------------------------------------------------------------------- 19 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Futures transactions To gain exposure to or protect itself from market changes, the Portfolio may buy and sell financial futures contracts traded on any U.S. or foreign exchange. The Portfolio 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 Portfolio 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 Portfolio 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 Portfolio 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 Portfolio 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 Portfolio and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. The Portfolio is subject to the credit risk that the other party will not complete its contract obligations. Federal taxes For federal income tax purposes the Portfolio qualifies as a partnership and each investor in the Portfolio is treated as the owner of its proportionate share of the net assets, income, expenses and realized and unrealized gains and losses of the Portfolio. As a "pass-through" entity, the Portfolio therefore does not pay any income dividends or capital gain distributions. 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. - -------------------------------------------------------------------------------- 20 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT 2. FEES AND EXPENSES The Trust, on behalf of the Portfolio, has an Investment Management Services Agreement with AEFC to manage its portfolio. Under this agreement, AEFC determines which securities will be purchased, held or sold. The management fee is a percentage of the Portfolio's average daily net assets in reducing percentages from 0.6% 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 New Dimensions Fund to the Lipper Large-Cap Growth Funds Index. The maximum adjustment is 0.12% of the Portfolio'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 increased the fee by $13,274,643 for the six months ended Jan. 31, 2002. Under the agreement, the Trust also pays taxes, brokerage commissions and nonadvisory expenses, which include custodian fees, audit and certain legal fees, fidelity bond premiums, registration fees for units, office expenses, consultants' fees, compensation of trustees, corporate filing fees, expenses incurred in connection with lending securities of the Portfolio and any other expenses properly payable by the Trust or Portfolio and approved by the board. During the six months ended Jan. 31, 2002, the Portfolio's custodian fees were reduced by $12,699 as a result of earnings credits from overnight cash balances. The Portfolio also pays custodian fees to American Express Trust Company, an affiliate of AEFC. According to a Placement Agency Agreement, American Express Financial Advisors Inc. acts as placement agent of the Trust's units. 3. SECURITIES TRANSACTIONS Cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated $2,614,989,175 and $3,065,169,991, respectively, for the six months ended Jan. 31, 2002. For the same period, the portfolio turnover rate was 12%. Realized gains and losses are determined on an identified cost basis. Brokerage commissions paid to brokers affiliated with AEFC were $647,945 for the six months ended Jan. 31, 2002. 4. LENDING OF PORTFOLIO SECURITIES As of Jan. 31, 2002, securities valued at $4,327,140 were on loan to brokers. For collateral, the Portfolio received $2,652,000 in cash and U.S. government securities valued at $1,852,144. Income from securities lending amounted to $46,107 for the six months ended Jan.31, 2002. The risks to the Portfolio of securities lending are that the borrower may not provide additional collateral when required or return the securities when due. 5. OPTIONS CONTRACTS WRITTEN Contracts and premium amounts associated with options contracts written are as follows:
Six months ended Jan. 31, 2002 Puts Calls Contracts Premiums Contracts Premiums Balance July 31, 2001 -- $ -- 5,000 $ 777,500 Opened 12,800 1,764,724 51,200 6,954,502 Closed (3,800) (389,587) (19,200) (2,699,032) Expired -- -- (20,000) (3,114,331) ----- ---------- ------ ----------- Balance Jan. 31, 2002 9,000 $1,375,137 17,000 $ 1,918,639 ----- ---------- ------ -----------
- -------------------------------------------------------------------------------- 21 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Investments in Securities Growth Trends Portfolio Jan. 31, 2002 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (95.3%) Issuer Shares Value(a) Aerospace & defense (0.3%) United Technologies 1,000,000 $68,730,000 Airlines (1.6%) Southwest Airlines 18,500,000 350,390,000 Banks and savings & loans (4.7%) Bank of America 7,000,000 441,210,000 USA Education 3,500,000 315,000,000 Wells Fargo 6,000,000 278,340,000 Total 1,034,550,000 Beverages & tobacco (2.5%) Anheuser-Busch 2,000,000 94,540,000 Philip Morris 8,800,000 440,968,000 Total 535,508,000 Chemicals (0.9%) Air Products & Chemicals 2,500,000 115,625,000 Waste Management 3,000,000 86,460,000 Total 202,085,000 Communications equipment & services (2.0%) Brocade Communications Systems 1,000,000(b) 36,400,000 Nokia ADR Cl A 3,100,000(c) 72,695,000 Verizon Communications 7,200,000 333,720,000 Total 442,815,000 Computer software & services (0.3%) Sungard Data Systems 1,000,000(b) 29,990,000 VERITAS Software 1,000,000(b) 42,550,000 Total 72,540,000 Computers & office equipment (12.5%) Automatic Data Processing 6,500,000(e) 351,000,000 Cisco Systems 17,000,000(b) 336,260,000 Dell Computer 1,000,000(b) 27,450,000 EMC 1,000,000(b) 16,400,000 Fiserv 700,000(b) 29,708,000 Intl Business Machines 6,000,000 647,340,000 Microsoft 12,000,000(b) 764,520,000 Oracle 8,000,000(b) 138,080,000 SAP ADR 1,000,000(c) 35,060,000 State Street 6,500,000 349,570,000 Total 2,695,388,000 Electronics (7.0%) Applied Materials 4,600,000(b) 200,790,000 Intel 16,000,000 560,640,000 Maxim Integrated Products 5,300,000(b) 294,097,000 Taiwan Semiconductor Mfg ADR 3,000,000(b,c) 50,910,000 Texas Instruments 13,200,000 411,972,000 Total 1,518,409,000 Energy (5.2%) ChevronTexaco 5,500,000 460,900,000 Exxon Mobil 15,000,000 585,750,000 Murphy Oil 1,000,000 79,000,000 Total 1,125,650,000 Energy equipment & services (0.8%) Schlumberger 3,200,000 180,448,000 Financial services (9.8%) Citigroup 22,000,000 1,042,800,000 Fannie Mae 4,000,000 323,800,000 MBNA 7,500,000 262,500,000 Morgan Stanley, Dean Witter & Co 9,000,000 495,000,000 Total 2,124,100,000 Food (0.5%) General Mills 2,000,000 99,100,000 Health care (8.2%) Amgen 2,400,000(b,e) 133,200,000 Bristol-Myers Squibb 4,500,000 204,165,000 Genentech 2,000,000(b) 98,900,000 Johnson & Johnson 6,500,000 373,815,000 Medtronic 7,000,000 344,890,000 Pfizer 15,000,000 625,050,000 Total 1,780,020,000 Health care services (5.0%) Cardinal Health 7,000,000 461,370,000 HCA 8,000,000 340,000,000 UnitedHealth Group 4,000,000 297,400,000 Total 1,098,770,000 See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 22 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Common stocks (continued) Issuer Shares Value(a) Household products (1.0%) Gillette 1,000,000 $33,300,000 Procter & Gamble 2,200,000 179,696,000 Total 212,996,000 Indexes (1.4%) Nasdaq-100 Index Tracking 8,000,000(b) 308,320,000 Industrial equipment & services (2.1%) Caterpillar 5,000,000 251,400,000 Illinois Tool Works 3,000,000 214,140,000 Total 465,540,000 Insurance (4.0%) American Intl Group 7,600,000 563,540,000 Marsh & McLennan 3,000,000 305,550,000 Total 869,090,000 Leisure time & entertainment (2.6%) Intl Game Technology 500,000(b) 32,900,000 Mattel 3,000,000 57,000,000 Viacom Cl B 12,000,000(b) 479,880,000 Total 569,780,000 Media (3.4%) AOL Time Warner 12,000,000(b) 315,720,000 eBay 2,000,000(b) 118,440,000 Gannett 2,000,000 134,900,000 Grupo Televisa 1,000,000(b,c) 44,600,000 USA Networks 4,800,000(b) 137,232,000 Total 750,892,000 Metals (0.7%) Alcoa 4,500,000 161,325,000 Multi-industry conglomerates (6.4%) General Electric 20,000,000 743,000,000 Minnesota Mining & Mfg 4,000,000 443,200,000 Robert Half Intl 3,000,000(b) 78,660,000 Tyco Intl 4,000,000(c) 140,600,000 Total 1,405,460,000 Paper & packaging (0.2%) Intl Paper 1,000,000 41,780,000 Restaurants & lodging (0.9%) Marriott Intl Cl A 5,000,000 203,900,000 Retail (9.6%) Best Buy 1,500,000(b) 111,000,000 Costco Wholesale 7,000,000(b) 322,000,000 Home Depot 5,000,000 250,450,000 Kohl's 500,000(b,e) 33,145,000 Safeway 3,000,000(b,e) 121,350,000 Target 10,000,000 444,100,000 Wal-Mart Stores 12,000,000 719,760,000 Walgreen 2,400,000 87,072,000 Total 2,088,877,000 Utilities -- electric (1.7%) Dominion Resources 4,000,000 235,480,000 Duke Energy 4,000,000 139,480,000 Total 374,960,000 Total common stocks (Cost: $16,742,692,757) $20,781,423,000 Preferred stocks (0.5%) Issuer Shares Value(a) Duke Energy 8.25% Cv 1,800,000 $44,280,000 TXU 8.75% Cv 1,400,000 73,360,000 Total preferred stocks (Cost: $116,277,558) $117,640,000 Short-term securities (3.5%)(e) Issuer Annualized Amount Value(a) yield on date payable at of purchase maturity U.S. government agencies (0.9%) Federal Home Loan Mtge Corp Disc Nt 02-25-02 1.69% $12,900,000 $12,884,668 Federal Natl Mtge Assn Disc Nts 02-13-02 1.67 32,400,000 32,381,419 03-12-02 1.65 50,000,000 49,908,194 03-14-02 1.68 50,000,000 49,907,464 03-28-02 1.68 50,000,000 49,874,368 Total 194,956,113 Commercial paper (2.6%) Amsterdam Funding 02-22-02 1.85 30,000,000(d) 29,966,083 Barton Capital 02-11-02 1.78 25,000,000(d) 24,986,403 03-07-02 1.77 20,000,000(d) 19,965,585 CAFCO 02-27-02 1.73 25,000,000 24,967,563 03-01-02 1.63 26,900,000(d) 26,864,680 Caterpillar 03-08-02 1.87 14,400,000(d) 14,359,165 See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 23 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT Short-term securities (continued) Issuer Annualized Amount Value(a) yield on date payable at of purchase maturity Commercial paper (cont.) Charta 02-05-02 2.10% $20,000,000(d) $19,992,366 02-19-02 1.75 27,000,000(d) 26,975,062 Commerzbank U.S. Finance 03-13-02 1.76 15,200,000 15,167,975 CXC 02-07-02 1.80 27,000,000(d) 26,990,550 Dexia Delaware 06-04-02 1.94 10,000,000 9,933,522 Edison Asset Securitization 02-04-02 1.76 25,000,000 24,995,112 02-12-02 1.80 25,000,000(d) 24,985,000 02-20-02 1.78 30,000,000(d) 29,970,333 03-04-02 1.73 25,000,000(d) 24,961,556 03-05-02 1.77 28,200,000(d) 28,154,247 Falcon Asset 02-01-02 1.85 30,000,000(d) 29,998,458 Fleet Funding 02-06-02 1.85 30,000,000(d) 29,990,750 Gannett 02-11-02 1.74 1,100,000(d) 1,099,415 Kitty Hawk Funding 02-27-02 1.81 9,900,000(d) 9,886,561 Natl Rural Utilities 02-04-02 1.82 5,000,000 4,998,989 02-08-02 1.77 20,000,000 19,992,134 Old Line Funding 02-11-02 1.86 30,000,000(d) 29,982,949 Proctor & Gamble 02-19-02 1.78 12,500,000(d) 12,488,257 Salomon Smith Barney 03-08-02 1.78 1,700,000 1,696,974 Variable Funding Capital 02-14-02 1.79 30,000,000(d) 29,979,115 Windmill Funding 02-11-02 1.80 5,700,000(d) 5,696,762 02-21-02 1.63 22,800,000(d) 22,778,322 Total $571,823,888 Total short-term securities (Cost: $766,824,341) $766,780,001 Total investments in securities (Cost: $17,625,794,656)(f) $21,665,843,001 See accompanying notes to investments in securities. - -------------------------------------------------------------------------------- 24 AXP NEW DIMENSIONS FUND -- SEMIANNUAL 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 Jan. 31, 2002, the value of foreign securities represented 1.6% of net assets. (d) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." This security has been determined to be liquid under guidelines established by the board. (e) At Jan. 31, 2002, securities valued at $54,762,487 were held to cover open call options written as follows (see Note 5 to the financial statements): Issuer Contracts Exercise Expiration Value(a) price date Amgen 5,000 $60 Feb. 2002 $100,000 Automatic Data 5,000 60 Feb. 2002 50,000 Kohl's 5,000 75 Feb. 2002 50,000 Safeway 2,000 45 Feb. 2002 5,000 ----- -- --------- ----- Total value $205,000 -------- At Jan. 31, 2002, cash or short-term securities were designated to cover open put options written as follows (see Note 5 to the financial statements): Issuer Contracts Exercise Expiration Value(a) price date Amgen 5,000 $50 Feb. 2002 $150,000 eBay 4,000 55 Feb. 2002 500,000 ----- -- --------- ------- Total value $650,000 -------- (f) At Jan. 31, 2002, the cost of securities for federal income tax purposes was approximately $17,625,795,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $4,724,399,000 Unrealized depreciation (684,351,000) ------------ Net unrealized appreciation $4,040,048,000 -------------- - -------------------------------------------------------------------------------- 25 AXP NEW DIMENSIONS FUND -- SEMIANNUAL REPORT AXP New Dimensions Fund 70100 AXP Financial Center Minneapolis, MN 55474 americanexpress.com Ticker Symbol Class A: INNDX Class B: INDBX Class C: ANDCX Class Y: IDNYX 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-6441 T (4/02) -----END PRIVACY-ENHANCED MESSAGE-----