Prospectus Supplement

                              Dated July 27, 2005*

       AXP Threadneedle Global Balanced Fund (Dec. 30, 2004) S-6352-99 L

The Fund's Board of Directors has approved in principle the merger of the Fund
into AXP Mutual, a fund that seeks to provide shareholders with a balance of
growth of capital and current income.

Completion of the merger is subject to a number of conditions, including final
approval by the Fund's Directors and approval by shareholders of the Fund. It is
currently anticipated that, pending final approval from the Fund's Directors,
proxy materials regarding the merger will be distributed to shareholders during
the fourth quarter of 2005, and that a meeting of shareholders to consider the
merger will be scheduled for the first quarter of 2006. It is anticipated that
the Fund will be closed to new investors in the first quarter of 2006.

For more information about AXP Mutual, please call (800) 862-7919 for a
prospectus.

S-6352-4 A (7/05)

* Valid until next prospectus update.