<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>s6015.txt
<DESCRIPTION>AXP GROWTH DIMENSIONS FUND - 2003 SEMIANNUAL REPORT
<TEXT>
AXP(R)
Growth
Dimensions
Fund
2003 SEMIANNUAL REPORT
JAN. 31, 2003
AXP Growth Dimensions Fund seeks to provide shareholders with long-term capital
growth.
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(logo) (logo)
American AMERICAN
Express(R) EXPRESS
Funds (R)
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<PAGE>
Mutual Funds Can Work for You
For more than six decades, American Express(R) Funds has provided investors with
attractive investment opportunities. Several of our funds helped pioneer the
mutual fund industry in the 1940s. Today, with 58 publicly offered funds and
nearly $64 billion* in assets, American Express Funds ranks among the largest
U.S. fund families. American Express Financial Corporation, the investment
manager for American Express Funds, has more than 100 years of experience as a
financial services provider -- a claim few other financial firms can make. With
investment management offices in Minneapolis, Boston, New York, San Diego,
London, Tokyo and Singapore, we strive to provide our shareholders with the
high-quality service American Express is known for worldwide.
At American Express Funds, we're focused on your success. Our investment
managers have the strength and experience that you can count on to help you
achieve your financial goals -- now and into the future.
* As of December 2002.
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Table of Contents
From the Chairman 3
Economic and Market Update 4
Fund Snapshot 6
Questions & Answers
with Portfolio Management 7
Investments in Securities 10
Financial Statements 13
Notes to Financial Statements 16
Results of Meeting of Shareholders 28
(logo)
Dalbar
American Express(R) Funds' reports to shareholders have been awarded the
Communications Seal from Dalbar Inc., an independent financial services research
firm. The Seal recognizes communications demonstrating a level of excellence in
the industry.
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2 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
From the Chairman
(picture of) Arne H. Carlson
Arne H. Carlson
Chairman of the board
Dear Shareholders,
The recent proposed Bush economic stimulus package and potential conflicts
around the globe are capturing headlines. Negative investment returns persisted
in 2002 and the investing public also had their confidence in the integrity of
corporations shaken. While the scandals appear to be largely behind us, the
recent past offers lessons on investing and on governance, which I would like to
discuss with you.
First, and importantly, we have learned that diversification is not just a
concept but a key tactic investors can use to help preserve assets. We would
encourage you to work closely with your financial advisor to build a diversified
portfolio designed to match your current thoughts about risk and reward.
A second lesson of 2002 is that we must have enhanced oversight of corporations
to ensure their financial statements are accurate, their officers act in the
interest of shareholders and
their directors are truly independent. The Sarbanes-Oxley Act passed by Congress
in August, is already having an impact in these areas.
The American Express Funds Board is an independent body comprised of nine
members who are nominated by the independent directors. American Express
Financial Corporation is represented by three board members, however, they do
not play a role on the nominating committee.
In addition, the Funds auditors, KPMG LLP, are independent of American Express
Financial Corporation. KPMG serves the interest of shareholders by supporting
the work of the Board and certifying unbiased financial reports.
Further, the Board has confidence in Ted Truscott, American Express Financial
Corporation's Chief Investment Officer, and shares his enthusiasm in the
management changes he has effected to improve the investment performance of all
American Express funds. The focus of the Board and American Express Financial
Corporation is simple; we strive for consistent, competitive investment
performance.
On behalf of the Board,
Arne H. Carlson
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3 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Economic and Market Update
FROM CIO WILLIAM F. "TED" TRUSCOTT
(photo of) William F. "Ted" Truscott
William F. "Ted" Truscott
Chief Investment Officer
American Express
Financial Corporation
Dear Shareholders,
In spite of a mostly positive fourth quarter*, 2002 proved to be an
extraordinarily challenging year for investors, with the benchmark stock indices
-- the Dow, the Nasdaq and the S&P 500 -- all registering percentage losses well
into the double digits.
While there were technical factors that put a damper on market performance last
year, most notably, P/E ratios that are surprisingly high after three years of a
bear market, it was corporate governance issues that fostered a general
atmosphere of mistrust. The collapse of several large, high profile companies
due to outright fraud and malfeasance has been -- and ought to be -- outrageous
to the investing public. The magnitude of this wrongdoing is still shocking
months after the fact. When many economic factors should have been giving
investors reason for optimism, the steady drip of news about these companies
sapped overall confidence.
I believe there is ample evidence that conditions are not as bad as the markets
seem to think. While corporate earnings have been weak, the economy grew at the
respectable rate of about 3% last year, compared to 0.1% in 2001. A portion of
the softness in earnings can be attributed to excess capacity added in the late
`90s.
KEY POINTS
-- If you are rebalancing your portfolio, we encourage moderate changes from
stocks to bonds.
-- Interest rates are the lowest they have been in 40 years.
-- There is ample evidence that conditions are not as bad as the markets seem
to think.
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4 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Economic and Market Update
Interest rates are another bright spot. They are the lowest they have been in 40
years, which has added to consumer and business purchasing power. There's no
better illustration of this than the housing market, which has remained
vigorous. Finally, the business productivity gains we've seen since the mid-`90s
are remarkable, making products and services less expensive. The macroeconomic
picture, while not ideal, is certainly positive.
For these reasons, I'm cautiously optimistic about market prospects for 2003. Of
course, there are still risks. Much of what happens this year will depend on
external factors, such as whether or not more scandals arise and the
implications of potential conflict in Iraq. In the short term, military action
in Iraq would almost certainly produce an oil price spike; if that increase
became severe enough for a significant period of time, it would create
inflationary pressures that could endanger economic growth.
In addition to stocks, some bond categories offer opportunity. Though we believe
U.S. Treasuries are currently overvalued, select corporate, high-yield and
municipal issues may provide competitive returns this year. Speak to your
financial advisor to learn more about different asset classes.
After three years of negative stock market returns, many individual investors
are rebalancing portfolios with regard to risk and return. If you are
repositioning, we would encourage moderate changes from stocks to bonds. The
risk inherent in emotion-based repositioning is that you will go too far too
fast. I encourage gradual movement across categories. Should interest rates move
at all in 2003, it's likely that they'll go up, which will have a negative
impact on most bonds. Continue to invest according to your individual timeframe
and financial goals.
As always, thank you for investing with American Express Funds.
William F. Truscott
* Please see portfolio manager Q&A for fiscal period economic coverage.
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5 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Fund Snapshot
AS OF JAN. 31, 2003
PORTFOLIO MANAGER
Portfolio manager Gordon Fines
Tenure/since 6/00
Years in industry 35
FUND OBJECTIVE
For investors seeking long-term capital growth.
Inception dates
A: 6/26/00 B: 6/26/00 C: 6/26/00 Y: 6/26/00
Ticker symbols
A: AXDAX B: ABGDX C: AXGDX Y: --
Total net assets $187.9 million
Number of holdings approximately 90
STYLE MATRIX
Shading within the style matrix indicates areas in which the Fund generally
invests.
STYLE
VALUE BLEND GROWTH
X LARGE
MEDIUM SIZE
SMALL
TOP FIVE SECTORS
Percentage of portfolio assets
Health care 12.4%
Banks and savings & loans 8.2
Retail 7.4
Leisure time & entertainment 7.2
Multi-industry conglomerates 6.7
TOP TEN HOLDINGS
Percentage of portfolio assets
Bank of America 3.8%
Microsoft 3.6
Wal-Mart Stores 3.4
HCA 3.2
Viacom Cl B 3.1
3M 3.0
Medtronic 2.9
Johnson & Johnson 2.9
Citigroup 2.8
Amgen 2.8
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
Stock prices of established companies that pay dividends may be less volatile
than the stock market as a whole. Stocks of medium-sized companies may be
subject to more abrupt or erratic price movements than stocks of larger
companies.
Fund holdings are subject to change.
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6 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Questions & Answers
WITH PORTFOLIO MANAGEMENT
Q: How did AXP Growth Dimensions Fund perform for the six-month period ended
Jan. 31, 2003?
A: AXP Growth Dimensions Fund's Class A shares fell 6.90%, excluding sales
charges, underperforming its benchmark, the S&P 500 Index, which dropped
5.26%. The Fund outperformed its peer group, as represented by the Lipper
Large-Cap Growth Funds Index, which declined 7.43% for the same period.
Q: What factors most significantly affected performance?
A: Extreme volatility marked the six-month period. Early in the period, stock
markets reached four-year lows, depressing stocks of every style and
capitalization, including large-cap growth stocks. The portfolio's defensive
stance, including an emphasis on consumer cyclical companies and other
sectors most likely to weather the storm, helped performance during this
time. Such companies, including WalMart, Microsoft, Bank of America, 3M and
Johnson & Johnson, all held up well early in the period.
The market did an about-face in October and November, when the most
beaten-up sectors of the past three years, including telecommunications and
technology, led a rally. The Fund had a lower-than-index weighting in both
of these sectors and did not reap the full benefits of the rally. For
example, the Fund did not own IBM, which outperformed its peer group.
(bar chart)
PERFORMANCE COMPARISON
For the year ended Jan. 31, 2003
0%
-2%
-4% (bar 2)
(bar 1) -5.26%
-6% -6.90% (bar 3)
-7.43%
-8%
(bar 1) AXP Growth Dimensions Fund
Class A (excluding sales charge)
(bar 2) Standard & Poor's 500 Index(1) (unmanaged)
(bar 3) Lipper Large-Cap Growth Funds Index(2)
(1) Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index 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.
(2) The Lipper Large-Cap Growth Funds 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.
Past performance is no guarantee of future results. The 5.75% sales charge
applicable to Class A shares of the Fund is not reflected in the bar chart; if
reflected, returns would be lower than those shown. The performance of Class B,
Class C and Class Y may vary from that shown above because of differences in
sales charges and fees.
The indices do not reflect the effects of sales charges, expenses (excluding
Lipper) and taxes.
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7 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Questions & Answers
(begin callout quote) > In anticipation of improving stock prices, we slightly
increased our positions in the energy sector, while maintaining an overweight
position in healthcare. (end callout quote)
Meanwhile, the Fund's defensive holdings performed positively later in the
period, but not as well as the technology sector.
From a sector standpoint, higher-than-index weightings in healthcare
services and energy were both negatives during the six-months. Rising oil
prices did not translate into rising stock prices. An underweight position
in communications services, a top gainer during the market rally, also hurt
performance. Stock selection in financial services, with top ten holdings
Citigroup and Bank of America among the period's top performers, benefited
performance. A new holding, Amgen, a biotechnology firm, also appreciated
for the six months.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
as of Jan. 31, 2003
Class A Class B Class C Class Y
(Inception dates) (6/26/00) (6/26/00) (6/26/00) (6/26/00)
NAV(1) POP(2) NAV(1) After CDSC(3) NAV(1) After CDSC(4) NAV(5) POP(5)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6 months* -6.90% -12.26% -7.50% -11.20% -7.50% -8.43% -6.86% -6.86%
1 year -25.59% -29.87% -26.29% -29.24% -26.29% -26.29% -25.49% -25.49%
Since inception -30.78% -32.34% -31.35% -32.15% -31.35% -31.35% -30.65% -30.65%
</TABLE>
* Not annualized.
(1) Excluding sales charge.
(2) Returns at public offering price (POP) reflect a sales charge of 5.75%.
(3) Returns at maximum contingent deferred sales charge (CDSC). CDSC applies as
follows: first year 5%; second and third year 4%; fourth year 3%; fifth
year 2%; sixth year 1%; no sales charge thereafter.
(4) 1% CDSC applies to redemptions made within the first year of purchase.
(5) Sales charge is not applicable to these shares. Shares available to
institutional investors only.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost. The performance shown for each class of
shares will vary due to differences in sales charges and fees. Short term
performance may be higher or lower than the figures shown. Visit
americanexpress.com for current information.
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8 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Questions & Answers
Q: What changes did you make to the Fund during the period?
A: Anthem, a leader in HMO services and health insurance, was added to the Fund
during the period. This company acquired competitor Trigon in 2002, and we
believe it is positioned to prosper. Amgen was also added to the portfolio.
The company's stock price has risen steadily since reaching a multi-year low
in July.
In anticipation of improving stock prices, we slightly increased our
positions in the energy sector, while maintaining an overweight position in
healthcare, but an underweight in its sub-sector, pharmaceuticals. Pfizer
was the only drug company of note in the portfolio, and the company
outperformed its peer group during the period. We also added some of the
better performing mid-cap stocks to the Fund, including discount airline
company Jet Blue, software developer Symantec, insurer Progressive Corp. and
medical device manufacturer Boston Scientific. The bulk of the Fund's
assets, however, remained relatively constant. The portfolio's top 10
holdings look similar to the top holdings six months ago, although General
Electric and Pfizer have been replaced by HCA, which operates the nation's
largest chain of hospitals and Medtronic, which makes cardiovascular devices
and medical equipment.
Q: What is your outlook and how will you position the Fund?
A: Given uncertainty in the Middle East and a stubbornly sluggish economic
recovery, the portfolio will remain relatively defensive for the first few
months of the period. Technology stocks have yet to overcome the twin
hurdles of low demand and over-capacity, and the Fund will remain slightly
underweight in this sector. Although oil stock prices didn't rise as
expected in late 2002, we anticipate a bump up in prices to materialize
during the coming months. Oil and gasoline prices have risen steadily, and
we believe this may translate into increased profits for select energy
companies. The Fund also remains overweight in the healthcare sector, which
we believe is one of the better defensive plays. Additionally, we will
continue looking for attractive mid-cap and large-cap opportunities.
Going forward, we will continue to broadly diversify the Fund's holdings,
looking for large-cap opportunities that display good fundamentals and a
better-than-average potential for growth.
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9 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Investments in Securities
AXP Growth Dimensions Fund
Jan. 31, 2003 (Unaudited)
(Percentages represent value of investments compared to net assets)
Common stocks (94.0%)
Issuer Shares Value(a)
Aerospace & defense (0.5%)
Northrop Grumman 10,700 $978,087
Airlines (1.3%)
JetBlue Airways 22,200(b) 628,260
Southwest Airlines 140,000 1,827,000
Total 2,455,260
Banks and savings & loans (8.1%)
Bank of America 100,000 7,005,000
State Street 95,000 3,761,050
Wells Fargo 90,000 4,263,300
Total 15,029,350
Beverages & tobacco (3.3%)
Altria Group 90,000 3,408,300
PepsiCo 70,000 2,833,600
Total 6,241,900
Chemicals (0.5%)
Waste Management 40,000 919,600
Communications equipment & services (1.4%)
Nokia ADR 75,000(c) 1,079,250
Verizon Communications 40,000 1,531,200
Total 2,610,450
Computer software & services (5.4%)
Intuit 80,000(b) 3,528,000
Microsoft 140,000(b) 6,644,400
Total 10,172,400
Computers & office equipment (3.2%)
Dell Computer 120,000(b) 2,863,200
Intl Business Machines 35,000 2,738,050
Symantec 10,800(b) 504,144
Total 6,105,394
Electronics (3.7%)
Applied Materials 90,000(b) 1,077,300
Intel 130,000 2,035,800
Maxim Integrated Products 60,000 1,869,000
Texas Instruments 120,000 1,908,000
Total 6,890,100
Energy (4.9%)
ConocoPhillips 100,000 4,819,000
Kerr-McGee 40,000 1,670,800
Ocean Energy 150,000 2,809,500
Total 9,299,300
Energy equipment & services (2.7%)
Schlumberger 50,000 1,885,000
Transocean 100,000 2,277,000
Weatherford Intl 25,000(b,c) 929,000
Total 5,091,000
Financial services (5.6%)
Citigroup 150,000 5,157,000
Goldman Sachs Group 20,000 1,362,000
Kansas City Southern 60,000(b) 765,000
Lehman Brothers Holdings 30,000 1,635,900
Paychex 25,000 629,500
SLM 10,000 1,062,300
Total 10,611,700
Food (0.7%)
General Mills 30,000 1,347,900
Health care (12.3%)
Amgen 100,000(b) 5,096,000
Boston Scientific 10,000(b) 404,500
Forest Laboratories 30,000(b) 1,552,500
Johnson & Johnson 100,000 5,361,000
Medtronic 120,000 5,390,400
Pfizer 150,000 4,554,000
St. Jude Medical 13,100(b) 570,767
Total 22,929,167
Health care services (6.5%)
Anthem 70,000(b) 4,345,600
Cardinal Health 16,000 933,280
DaVita 40,600(b) 978,460
HCA 140,000 5,983,600
Total 12,240,940
See accompanying notes to investments in securities.
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10 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Common stocks (continued)
Issuer Shares Value(a)
Household products (2.3%)
Gillette 32,500 $971,750
Procter & Gamble 40,000 3,422,800
Total 4,394,550
Industrial equipment & services (0.7%)
Deere & Co 30,000 1,266,000
Insurance (1.5%)
American Intl Group 17,300 936,276
Progressive 40,600 1,962,604
Total 2,898,880
Leisure time & entertainment (7.2%)
Carnival 39,500 951,950
Harley-Davidson 50,000 2,089,000
Intl Game Technology 20,200(b) 1,593,174
Mattel 55,000 1,100,000
MGM Mirage 70,000(b) 1,834,000
Viacom Cl B 150,000(b) 5,782,500
Total 13,350,624
Media (3.0%)
eBay 20,000(b) 1,503,200
Gannett 14,000 1,017,240
Univision Communications Cl A 35,100(b) 925,236
USA Interactive 100,000(b) 2,201,000
Total 5,646,676
Multi-industry conglomerates (6.6%)
3M 45,000(d) 5,604,750
Cendant 70,000(b) 775,600
Danaher 15,500 951,855
General Electric 160,000 3,702,400
Tyco Intl 87,000(c) 1,392,870
Total 12,427,475
Paper & packaging (0.8%)
Intl Paper 40,000 1,428,000
Retail (7.3%)
Bed Bath & Beyond 20,000(b) 670,600
Best Buy 45,000(b) 1,174,050
Home Depot 50,000 1,045,000
Kohl's 10,000(b) 523,700
Target 130,000 3,667,300
Wal-Mart Stores 130,000 6,214,000
Williams-Sonoma 12,700(b) 300,609
Total 13,595,259
Transportation (1.0%)
Norfolk Southern 100,000 1,970,000
Utilities -- electric (2.6%)
Dominion Resources 90,000 4,877,100
Utilities -- telephone (1.0%)
Nextel Communications Cl A 150,000(b) 1,893,000
Total common stocks
(Cost: $207,570,483) $176,670,112
Option purchased (--%)
Issuer Contracts Exercise Expiration Value(a)
price date
Put
3M 110 $125 Feb. 2003 $37,400
Total option purchased
(Cost: $35,200) $37,400
Short-term securities (4.0%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
U.S. government agencies (3.5%)
Federal Home Loan Bank Disc Nt
02-21-03 1.25% $500,000 $499,641
Federal Home Loan Mtge Corp Disc Nts
02-04-03 1.28 2,100,000 2,099,703
02-13-03 1.26 200,000 199,913
02-27-03 1.26 900,000 899,197
02-28-03 1.24 1,600,000 1,598,457
Federal Natl Mtge Assn Disc Nts
03-19-03 1.28 600,000 599,122
04-09-03 1.24 700,000 698,483
Total 6,594,516
Commercial paper (0.5%)
Alpine Securitization
02-03-03 1.33 1,000,000(e) 999,889
Total short-term securities
(Cost: $7,594,371) $7,594,405
Total investments in securities
(Cost: $215,200,054)(f) $184,301,917
See accompanying notes to investments in securities.
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11 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
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, 2003,
the value of foreign securities represented 1.8% of net assets.
(d) At Jan. 31, 2003, securities valued at $880,000 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
3M 110 $130 Feb. 2003 $8,800
(e) 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.
(f) At Jan. 31, 2003, the cost of securities for federal income tax purposes
was approximately $215,200,000 and the approximate aggregate gross
unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $ 4,361,000
Unrealized depreciation (35,259,000)
-----------
Net unrealized depreciation $(30,898,000)
------------
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12 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Financial Statements
<TABLE>
<CAPTION>
Statement of assets and liabilities
AXP Growth Dimensions Fund
Jan. 31, 2003 (Unaudited)
Assets
Investments in securities, at value (Note 1)
<S> <C> <C>
(identified cost $215,200,054) $ 184,301,917
Cash in bank on demand deposit 88,652
Capital shares receivable 1,200
Dividends and accrued interest receivable 127,417
Receivable for investment securities sold 3,538,599
---------
Total assets 188,057,785
-----------
Liabilities
Capital shares payable 3,084
Payable for investment securities purchased 35,200
Accrued investment management services fee 2,638
Accrued distribution fee 2,552
Accrued transfer agency fee 1,741
Accrued administrative services fee 168
Other accrued expenses 91,371
Options contracts written, at value (premiums received $11,000) (Note 5) 8,800
-----
Total liabilities 145,554
-------
Net assets applicable to outstanding capital stock $ 187,912,231
=============
Represented by
Capital stock -- $.01 par value (Note 1) $ 1,000,996
Additional paid-in capital 462,958,955
Net operating loss (101,437)
Accumulated net realized gain (loss) (Note 6) (245,050,346)
Unrealized appreciation (depreciation) on investments (30,895,937)
-----------
Total -- representing net assets applicable to outstanding capital stock $ 187,912,231
=============
Net assets applicable to outstanding shares: Class A $ 124,977,094
Class B $ 59,108,075
Class C $ 3,803,736
Class Y $ 23,326
Net asset value per share of outstanding capital stock: Class A shares 66,130,931 $ 1.89
Class B shares 31,903,500 $ 1.85
Class C shares 2,052,857 $ 1.85
Class Y shares 12,296 $ 1.90
------ -------------
</TABLE>
See accompanying notes to financial statements.
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13 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Statement of operations
AXP Growth Dimensions Fund
Six months ended Jan. 31, 2003 (Unaudited)
Investment income
Income:
<S> <C>
Dividends $ 1,214,453
Interest 120,971
Fee income from securities lending -- net (Note 3) 1,501
Less foreign taxes withheld (6,824)
------
Total income 1,330,101
---------
Expenses (Note 2):
Investment management services fee 550,939
Distribution fee
Class A 169,169
Class B 322,628
Class C 20,432
Transfer agency fee 338,548
Incremental transfer agency fee
Class A 24,319
Class B 21,223
Class C 1,697
Service fee -- Class Y 12
Administrative services fees and expenses 34,691
Compensation of board members 4,842
Custodian fees 10,745
Printing and postage 42,090
Registration fees 14,295
Audit fees 7,625
Other 8,663
-----
Total expenses 1,571,918
Expenses waived/reimbursed by AEFC (Note 2) (138,281)
--------
1,433,637
Earnings credits on cash balances (Note 2) (2,099)
------
Total net expenses 1,431,538
---------
Investment income (loss) -- net (101,437)
--------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on security transactions (Note 3) (25,248,118)
Net change in unrealized appreciation (depreciation) on investments 10,956,783
----------
Net gain (loss) on investments (14,291,335)
-----------
Net increase (decrease) in net assets resulting from operations $(14,392,772)
============
</TABLE>
See accompanying notes to financial statements.
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14 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Statements of changes in net assets
AXP Growth Dimensions Fund
Jan. 31, 2003 July 31, 2002
Six months ended Year ended
(Unaudited)
Operations
<S> <C> <C>
Investment income (loss) -- net $ (101,437) $ (1,333,138)
Net realized gain (loss) on investments (25,248,118) (115,630,156)
Net change in unrealized appreciation (depreciation) on investments 10,956,783 30,045,770
---------- ----------
Net increase (decrease) in net assets resulting from operations (14,392,772) (86,917,524)
----------- -----------
Capital share transactions (Note 4)
Proceeds from sales
Class A shares (Note 2) 19,193,305 60,095,890
Class B shares 6,724,630 29,255,612
Class C shares 546,166 1,991,039
Payments for redemptions
Class A shares (26,884,584) (93,339,189)
Class B shares (Note 2) (11,007,969) (41,489,853)
Class C shares (Note 2) (769,310) (1,923,169)
Class Y shares -- (7,084)
------ ------
Increase (decrease) in net assets from capital share transactions (12,197,762) (45,416,754)
----------- -----------
Total increase (decrease) in net assets (26,590,534) (132,334,278)
Net assets at beginning of period 214,502,765 346,837,043
----------- -----------
Net assets at end of period $187,912,231 $ 214,502,765
============ =============
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
15 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Notes to Financial Statements
AXP Growth Dimensions Fund
(Unaudited as to Jan. 31, 2003)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of AXP Dimensions Series, Inc. (formerly 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 Dimensions Series, 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.
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.
--------------------------------------------------------------------------------
16 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Valuation of securities
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price. Debt securities are generally traded in
the over-the-counter market and are valued at a price that reflects fair value
as quoted by dealers in these securities or by an independent pricing service.
Securities for which market quotations are not readily available are valued at
fair value according to methods selected in good faith by the board. Short-term
securities maturing in more than 60 days from the valuation date are valued at
the market price or approximate market value based on current interest rates;
those maturing in 60 days or less are valued at amortized cost.
Option transactions
To produce incremental earnings, protect gains, and facilitate buying and
selling of securities for investments, the Fund may buy and write options traded
on any U.S. or foreign exchange or in the over-the-counter market where
completing the obligation depends upon the credit standing of the other party.
The Fund also may buy and sell put and call options and write covered call
options on portfolio securities as well as write cash-secured put options. The
risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases. The risk in writing a put
option is that the Fund may incur a loss if the market price of the security
decreases and the option is exercised. The risk in buying an option is that the
Fund pays a premium whether or not the option is exercised. The Fund also has
the additional risk of being unable to enter into a closing transaction if a
liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The Fund will
realize a gain or loss when the option transaction expires or closes. When an
option is exercised, the proceeds on sales for a written call option, the
purchase cost for a written put option or the cost of a security for a purchased
put or call option is adjusted by the amount of premium received or paid.
--------------------------------------------------------------------------------
17 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Futures transactions
To gain exposure to or protect itself from market changes, the Fund may buy and
sell financial futures contracts traded on any U.S. or foreign exchange. The
Fund also may buy and write put and call options on these futures contracts.
Risks of entering into futures contracts and related options include the
possibility of an illiquid market and that a change in the value of the contract
or option may not correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
Foreign currency translations and foreign currency contracts
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. Foreign currency amounts related to the
purchase or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected as a
component of such gains or losses. In the statement of operations, net realized
gains or losses from foreign currency transactions, if any, may arise from sales
of foreign currency, closed forward contracts, exchange gains or losses realized
between the trade date and settlement date on securities transactions, and other
translation gains or losses on dividends, interest income and foreign
withholding taxes.
The Fund may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Fund is subject to the credit risk that the
other party will not complete its contract obligations.
--------------------------------------------------------------------------------
18 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Federal taxes
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute substantially all
of its taxable income to shareholders. No provision for income or excise taxes
is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of deferred losses on
certain futures contracts, the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax purposes, and losses deferred due to
"wash sale" transactions. The character of distributions made during the year
from net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund.
Dividends to shareholders
An annual dividend from net investment income, declared and paid at the end of
the calendar year, when available, is reinvested in additional shares of the
Fund at net asset value or payable in cash. Capital gains, when available, are
distributed along with the income dividend.
Other
Security transactions are accounted for on the date securities are purchased or
sold. Dividend income is recognized on the ex-dividend date and interest income,
including amortization of premium and discount using the effective interest
method, is accrued daily.
--------------------------------------------------------------------------------
19 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
2. EXPENSES AND SALES CHARGES
The Fund has agreements with American Express Financial Corporation (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 Funds Index. Prior to Dec. 1, 2002, the maximum
adjustment was 0.12% of the Fund's average daily net assets after deducting 1%
from the performance difference. If the performance difference was less than 1%
the adjustment was zero. On Nov. 13, 2002, shareholders approved modification of
the performance incentive adjustment calculation by adjusting the performance
difference intervals, while retaining the previous maximum adjustment and
reducing the amount of the performance difference for which no adjustment is
made to 0.50%. The effect of the modifications began Dec. 1, 2002. The
adjustment increased the fee by $24,886 for the six months ended Jan. 31, 2003.
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.
--------------------------------------------------------------------------------
20 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
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 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
$216,385 for Class A, $59,118 for Class B and $309 for Class C for the six
months ended Jan. 31, 2003.
For the six months ended Jan. 31, 2003, AEFC and American Express Financial
Advisors Inc. waived certain fees and expenses to 1.15% for Class A, 1.91% for
Class B, 1.91% for Class C and 0.95% for Class Y. In addition, AEFC and American
Express Financial Advisors Inc. have agreed to waive certain fees and expenses
until July 31, 2003. 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 of the
Fund's average daily net assets.
During the six months ended Jan. 31, 2003, the Fund's custodian and transfer
agency fees were reduced by $2,099 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.
--------------------------------------------------------------------------------
21 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $50,851,565 and $50,979,037, respectively, for the six
months ended Jan. 31, 2003. Realized gains and losses are determined on an
identified cost basis.
Brokerage clearing fees paid to brokers affiliated with AEFC were $36,405 for
the six months ended Jan. 31, 2003.
Income from securities lending amounted to $1,501 for the six months ended Jan.
31, 2003. 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:
<TABLE>
<CAPTION>
Six months ended Jan. 31, 2003
Class A Class B Class C Class Y
<S> <C> <C> <C> <C>
Sold 9,693,481 3,450,161 280,841 --
Issued for reinvested distributions -- -- -- --
Redeemed (13,618,597) (5,697,445) (397,016) --
----------- ----------- -------- ------
Net increase (decrease) (3,925,116) (2,247,284) (116,175) --
----------- ----------- -------- ------
Year ended July 31, 2002
Class A Class B Class C Class Y
Sold 24,351,907 11,984,110 819,992 --
Issued for reinvested distributions -- -- -- --
Redeemed (38,649,187) (17,638,451) (809,472) (2,813)
----------- ----------- -------- ------
Net increase (decrease) (14,297,280) (5,654,341) 10,520 (2,813)
----------- ---------- ------ ------
</TABLE>
--------------------------------------------------------------------------------
22 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
5. OPTIONS CONTRACTS WRITTEN
Contracts and premiums associated with options contracts written are as follows:
Six months ended Jan. 31, 2003
Calls
Contracts Premiums
Balance July 31, 2002 -- $ --
Opened 110 11,000
Closed -- --
--- -------
Balance Jan. 31, 2003 110 $11,000
--- -------
6. CAPITAL LOSS CARRY-OVER
For federal income tax purposes, the Fund has a capital loss carry-over of
$214,945,244 as of July 31, 2002, that will expire in 2008 through 2011 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.
7. BANK BORROWINGS
The Fund has a revolving credit agreement with Deutsche Bank, whereby the Fund
is permitted to have bank borrowings for temporary or emergency purposes to fund
shareholder redemptions. The agreement went into effect Sept. 24, 2002. The Fund
must maintain asset coverage for borrowings of at least 300%. The agreement,
which enables the Fund to participate with other American Express mutual funds,
permits borrowings up to $500 million, collectively. Interest is charged to each
Fund based on its borrowings at a rate equal to either the LIBOR plus 0.50%, the
IBOR plus 0.50% or the higher of the Federal Funds Rate plus 0.25% and the Prime
Lending Rate. Borrowings are payable within 60 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 0.09% per annum. Prior to this agreement, the
Fund had a revolving credit agreement that permitted borrowings up to $200
million with U.S. Bank, N.A. The Fund had no borrowings outstanding during the
six months ended Jan. 31, 2003.
--------------------------------------------------------------------------------
23 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
8. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
<TABLE>
<CAPTION>
Class A
Per share income and capital changes(a)
Fiscal period ended July 31, 2003(j) 2002 2001 2000(b)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $2.03 $2.75 $ 4.87 $4.92
Income from investment operations:
Net investment income (loss) -- (.01) (.01) --
Net gains (losses) (both realized and unrealized) (.14) (.71) (2.11) (.05)
Total from investment operations (.14) (.72) (2.12) (.05)
Net asset value, end of period $1.89 $2.03 $ 2.75 $4.87
Ratios/supplemental data
Net assets, end of period (in millions) $125 $142 $232 $22
Ratio of expenses to average daily net assets(c) 1.15%(d),(h) 1.10% 1.12%(d) 1.10%(d),(h)
Ratio of net investment income (loss) to average daily net assets .16%(h) (.20%) (.16%) .37%(h)
Portfolio turnover rate (excluding short-term securities) 27% 69% 67% 2%
Total return(i) (6.90%)(k) (26.18%) (43.53%) (1.02%)(k)
</TABLE>
See accompanying notes to financial highlights.
--------------------------------------------------------------------------------
24 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Class B
Per share income and capital changes(a)
Fiscal period ended July 31, 2003(j) 2002 2001 2000(b)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $2.00 $2.73 $ 4.87 $4.92
Income from investment operations:
Net investment income (loss) (.01) (.03) (.02) --
Net gains (losses) (both realized and unrealized) (.14) (.70) (2.12) (.05)
Total from investment operations (.15) (.73) (2.14) (.05)
Net asset value, end of period $1.85 $2.00 $ 2.73 $4.87
Ratios/supplemental data
Net assets, end of period (in millions) $59 $68 $109 $11
Ratio of expenses to average daily net assets(c) 1.91%(e),(h) 1.88% 1.89%(e) 1.91%(e),(h)
Ratio of net investment income (loss) to average daily net assets (.60%)(h) (.97%) (.92%) (.48%)(h)
Portfolio turnover rate (excluding short-term securities) 27% 69% 67% 2%
Total return(i) (7.50%)(k) (26.74%) (43.94%) (1.02%)(k)
</TABLE>
See accompanying notes to financial highlights.
--------------------------------------------------------------------------------
25 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Class C
Per share income and capital changes(a)
Fiscal period ended July 31, 2003(j) 2002 2001 2000(b)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $2.00 $2.73 $ 4.87 $4.92
Income from investment operations:
Net investment income (loss) (.01) (.03) (.02) --
Net gains (losses) (both realized and unrealized) (.14) (.70) (2.12) (.05)
Total from investment operations (.15) (.73) (2.14) (.05)
Net asset value, end of period $1.85 $2.00 $ 2.73 $4.87
Ratios/supplemental data
Net assets, end of period (in millions) $4 $4 $6 $1
Ratio of expenses to average daily net assets(c) 1.91%(f),(h) 1.88% 1.89%(f) 1.91%(f),(h)
Ratio of net investment income (loss) to average daily net assets (.60%)(h) (.97%) (.94%) (.48%)(h)
Portfolio turnover rate (excluding short-term securities) 27% 69% 67% 2%
Total return(i) (7.50%)(k) (26.74%) (43.94%) (1.02%)(k)
</TABLE>
See accompanying notes to financial highlights.
--------------------------------------------------------------------------------
26 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Class Y
Per share income and capital changes(a)
Fiscal period ended July 31, 2003(j) 2002 2001 2000(b)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $2.03 $2.76 $ 4.88 $4.92
Income from investment operations:
Net gains (losses) (both realized and unrealized) (.13) (.73) (2.12) (.04)
Net asset value, end of period $1.90 $2.03 $ 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),(h) .94% .95%(g) .81%(g),(h)
Ratio of net investment income (loss) to average daily net assets .35%(h) .01% (.03%) .58%(h)
Portfolio turnover rate (excluding short-term securities) 27% 69% 67% 2%
Total return(i) (6.86%)(k) (26.45%) (43.44%) (.81%)(k)
</TABLE>
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 waived/reimbursed the Fund for certain expenses. Had AEFC not done so,
the annual ratios of expenses for Class A would have been 1.28% for the six
months ended Jan. 31, 2003 and 1.16% and 2.32% for the periods ended July
31, 2001 and 2000, respectively.
(e) AEFC waived/reimbursed the Fund for certain expenses. Had AEFC not done so,
the annual ratios of expenses for Class B would have been 2.06% for the six
months ended Jan. 31, 2003 and 1.92% and 3.40% for the periods ended July
31, 2001 and 2000, respectively.
(f) AEFC waived/reimbursed the Fund for certain expenses. Had AEFC not done so,
the annual ratios of expenses for Class C would have been 2.06% for the six
months ended Jan. 31, 2003 and 1.92% and 3.40% for the periods ended July
31, 2001 and 2000, respectively.
(g) AEFC waived/reimbursed the Fund for certain expenses. Had AEFC not done so,
the annual ratios of expenses for Class Y would have been 1.09% for the six
months ended Jan. 31, 2003 and 1.00% and 2.12% for the periods ended July
31, 2001 and 2000, respectively.
(h) Adjusted to an annual basis.
(i) Total return does not reflect payment of a sales charge.
(j) Six months ended Jan. 31, 2003 (Unaudited).
(k) Not annualized.
--------------------------------------------------------------------------------
27 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Results of Meeting of Shareholders
AXP GROWTH DIMENSIONS FUND
REGULAR MEETING OF SHAREHOLDERS HELD ON NOVEMBER 13, 2002
(UNAUDITED)
A brief description of each proposal voted upon at the meeting and the number of
votes cast for, against or withheld, as well as the number of abstentions and
broker non-votes as to each proposal is set forth below.
Proposal 1
To elect the thirteen nominees specified below as Board members*.
Shares Voted "For" Shares Withholding Authority to Vote
Arne H. Carlson 534,420,575.170 27,517,327.149
Philip J. Carroll, Jr. 535,920,182.084 26,017,720.235
Livio D. DeSimone 535,411,419.585 26,526,482.734
Barbara H. Fraser 536,103,771.858 25,834,130.461
Ira D. Hall 535,556,542.943 26,381,359.376
Heinz F. Hutter 534,838,246.456 27,099,655.863
Anne P. Jones 535,490,654.654 26,447,247.665
Stephen R. Lewis, Jr. 536,638,165.197 25,299,737.122
Alan G. Quasha 536,118,559.721 25,819,342.598
Stephen W. Roszell 536,241,543.778 25,696,358.541
Alan K. Simpson 533,993,065.721 27,944,836.598
Alison Taunton-Rigby 536,289,711.065 25,648,191.254
William F. Truscott 536,304,887.220 25,633,015.099
--------------------------------------------------------------------------------
28 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Proposal 2
To Amend the Articles of Incorporation/Declaration of Trust*:
2(a). To allow one vote/dollar instead of one vote/share.
Shares Voted "For" Shares Voted "Against" Abstentions Broker Non-Votes
451,399,367.395 57,421,956.144 17,393,005.780 35,723,573.000
2(b). To change the name of the corporation.
Shares Voted "For" Shares Voted "Against" Abstentions Broker Non-Votes
491,300,371.886 50,787,388.113 19,850,142.320 0.000
Proposal 3
To approve a policy authorizing American Express Financial Corporation, subject
to Board approval, to retain and replace subadvisers, or to modify subadvisory
agreements, without shareholder approval.
Shares Voted "For" Shares Voted "Against" Abstentions Broker Non-Votes
47,322,490.310 5,047,115.650 1,753,218.561 5,954,094.000
Proposal 4
To approve changes to the Investment Management Services Agreement:
4(b). To modify the performance incentive adjustment calculation.
Shares Voted "For" Shares Voted "Against" Abstentions Broker Non-Votes
46,737,176.860 4,947,869.650 2,437,778.011 5,954,094.000
* Denotes Registrant-wide proposals and voting results.
--------------------------------------------------------------------------------
29 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
Contact Information and Services
Internet
Receive 24-hour access to your account information at www.americanexpress.com.
Client Service
Receive fund performance, fund prices, account values, recent account
transactions, and make account inquiries by calling American Express Financial
Advisors at (800) 862-7919 or TTY: (800) 846-4852.
Telephone Transaction Service
For sales and exchange, dividend payments, or reinvestments and automatic
payment arrangement contact American Express Financial Advisors at (888)
723-8476.
Find an American Express Financial Advisor
If you are an existing American Express Financial Advisors client who has
recently moved and would like to speak with a new advisor, please call your
local Client Service Coordinator at (800) 803-6284.
--------------------------------------------------------------------------------
American Express(R) Funds provide investment opportunities for shareholders, all
in one place.
We've been managing mutual funds for over 60 years. Today, our family of funds
includes 58 publicly offered funds in all style categories: growth, blend,
value, and income. Our broad selection of funds allows you to build a portfolio
diversified across various asset classes.
Growth Funds
Typically, growth investing seeks to invest in companies with the greatest
earnings growth potential.
Blend Funds
Blend is often regarded as an investment style that incorporates both growth and
value considerations in the stock selection process.
Value Funds
A value investment approach generally seeks to invest in undervalued stocks that
are temporarily out of favor.
Income/Tax-Exempt Income Funds
Involves investing primarily in fixed income securities with the goal of
maximizing income and often, but not always, capital appreciation.
--------------------------------------------------------------------------------
30 -- AXP GROWTH DIMENSIONS FUND -- 2003 SEMIANNUAL REPORT
<PAGE>
American Express(R) Funds
For more complete information about our funds, including fees and expenses,
please call (800) 862-7919 for prospectuses. Read them carefully before you
invest.
Growth Funds
AXP(R) Emerging Markets Fund
AXP Equity Select Fund
AXP Focused Growth Fund
AXP Global Growth Fund
AXP Growth Fund
AXP Growth Dimensions Fund
AXP New Dimensions Fund(R)
AXP Partners International Aggressive Growth Fund
AXP Partners Small Cap Growth Fund
AXP Strategy Aggressive Fund
Blend Funds
AXP Blue Chip Advantage Fund
AXP Discovery Fund*
AXP European Equity Fund
AXP Global Balanced Fund
AXP International Fund
AXP Large Cap Equity Fund
AXP Managed Allocation Fund
AXP Mid Cap Index Fund
AXP Partners International Core Fund
AXP Partners International Small Cap Fund
AXP Partners Small Cap Core Fund
AXP Research Opportunities Fund
AXP S&P 500 Index Fund
AXP Small Cap Advantage Fund
AXP Small Company Index Fund
AXP Stock Fund
Value Funds
AXP Diversified Equity Income Fund
AXP Equity Value Fund
AXP Large Cap Value Fund
AXP Mid Cap Value Fund
AXP Mutual
AXP Partners Fundamental Value Fund
AXP Partners International Select Value Fund
AXP Partners Select Value Fund
AXP Partners Small Cap Value Fund
AXP Partners Value Fund
AXP Progressive Fund*
Income/Tax-Exempt Income Funds
AXP Bond Fund
AXP Cash Management Fund**
AXP Extra Income Fund
AXP Federal Income Fund
AXP Global Bond Fund
AXP High Yield Tax-Exempt Fund
AXP Insured Tax-Exempt Fund
AXP Intermediate Tax-Exempt Fund
AXP Selective Fund
AXP State Tax-Exempt Funds
AXP Tax-Exempt Bond Fund
AXP Tax-Free Money Fund**
AXP U.S. Government Mortgage Fund
Sector Funds
AXP Global Technology Fund
AXP Precious Metals Fund
AXP Utilities Fund
These funds are also listed in the categories above.
AXP(R) Partners Funds
AXP Partners Fundamental Value Fund
AXP Partners International Aggressive Growth Fund
AXP Partners International Core Fund
AXP Partners International Select Value Fund
AXP Partners International Small Cap Fund
AXP Partners Select Value Fund
AXP Partners Small Cap Core Fund
AXP Partners Small Cap Growth Fund
AXP Partners Small Cap Value Fund
AXP Partners Value Fund
International Funds
AXP Emerging Markets Fund
AXP European Equity Fund
AXP Global Balanced Fund
AXP Global Bond Fund
AXP Global Growth Fund
AXP International Fund
AXP Partners International Aggressive Growth Fund
AXP Partners International Core Fund
AXP Partners International Select Value Fund
AXP Partners International Small Cap Fund
* Closed to new investors.
** An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
(4/03)
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AXP Growth Dimensions Fund
70100 AXP Financial Center
Minneapolis, MN 55474
americanexpress.com
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(logo) (logo)
American AMERICAN
Express(R) EXPRESS
Funds (R)
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This report must be accompanied or preceded by the Fund's current prospectus.
Distributed by American Express Financial Advisors Inc. Member NASD. American
Express Company is separate from American Express Financial Advisors Inc. and
is not a broker-dealer.
S-6015 D (4/03)
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