Prospectus and Statement of Additional Information Supplement -- May 28, 2003*
Fund Name (Date) Prospectus Form # SAI Form #
AXP Blue Chip Advantage Fund (April 1, 2003) S-6025-99 V S-6025-20 V
AXP Bond Fund (Oct. 30, 2002) S-6495-99 V S-6495-20 V
AXP California Tax-Exempt Fund (Aug. 29, 2002) S-6328-99 W S-6328-20 W
AXP Discovery Fund (Sept. 27, 2002) S-6457-99 X S-6457-20 X
AXP Diversified Equity Income Fund (Nov. 29, 2002) S-6475-99 V S-6475-20 V
AXP Emerging Markets Fund (Dec. 30, 2002) S-6354-99 K S-6354-20 K
AXP Equity Select Fund (Jan. 29, 2003) S-6426-99 W S-6426-20 W
AXP Equity Value Fund (May 30, 2002) S-6382-99 M S-6382-20 M
AXP Equity Value Fund (May 30, 2003) S-6382-99 N S-6382-20 N
AXP European Equity Fund (Dec. 30, 2002) S-6006-99 E S-6006-20 E
AXP Extra Income Fund (July 30, 2002) S-6370-99 V S-6370-20 V
AXP Federal Income Fund (July 30, 2002) S-6042-99 W S-6042-20 W
AXP Focused Growth Fund (May 30, 2002) S-6003-99 D S-6003-20 D
AXP Focused Growth Fund (May 30, 2003) S-6003-99 E S-6003-20 E
AXP Global Balanced Fund (Dec. 30, 2002) S-6352-99 J S-6352-20 J
AXP Global Bond Fund (Dec. 30, 2002) S-6309-99 W S-6309-20 W
AXP Global Growth Fund (Dec. 30, 2002) S-6334-99 V S-6334-20 V
AXP Global Technology Fund (Dec. 30, 2002) S-6395-99 F S-6395-20 F
AXP Growth Dimensions Fund (Sept. 27, 2002) S-6004-99 E S-6004-20 E
AXP Growth Fund (Sept. 27, 2002) S-6455-99 W S-6455-20 W
AXP High Yield Tax-Exempt Fund (Jan. 29, 2003) S-6430-99 X S-6430-20 X
AXP Insured Tax-Exempt Fund (Aug. 29, 2002) S-6327-99 X S-6327-20 X
AXP Intermediate Tax-Exempt Fund (Jan. 29, 2003) S-6355-99 K S-6355-20 K
AXP International Fund (Dec. 30, 2002) S-6140-99 X S-6140-20 X
AXP Large Cap Equity Fund (Sept. 27, 2002) S-6244-99 C S-6244-20 C
AXP Large Cap Value Fund (Sept. 27, 2002) S-6246-99 C S-6246-20 C
AXP Managed Allocation Fund (Nov. 29, 2002) S-6141-99 W S-6141-20 W
AXP Massachusetts Tax-Exempt Fund (Aug. 29, 2002) S-6328-99 W S-6328-20 W
AXP Michigan Tax-Exempt Fund (Aug. 29, 2002) S-6328-99 W S-6328-20 W
AXP Mid Cap Value Fund (Nov. 29, 2002) S-6241-99 C S-6241-20 C
AXP Minnesota Tax-Exempt Fund (Aug. 29, 2002) S-6328-99 W S-6328-20 W
AXP Mutual (Nov. 29, 2002) S-6326-99 W S-6326-20 W
AXP New Dimensions Fund (Sept. 27, 2002) S-6440-99 V S-6440-20 V
AXP New York Tax-Exempt Fund (Aug. 29, 2002) S-6328-99 W S-6328-20 W
AXP Ohio Tax-Exempt Fund (Aug. 29, 2002) S-6328-99 W S-6328-20 W
AXP Partners Aggressive Growth Fund (March 5, 2003) S-6260-99 A S-6260-20 A
AXP Partners Fundamental Value Fund (July 30, 2002) S-6236-99 D S-6236-20 D
AXP Partners Growth Fund (March 5, 2003) S-6261-99 A S-6261-20 A
AXP Partners International Aggressive Growth Fund (Dec. 30, 2002) S-6243-99 E S-6243-20 E
AXP Partners International Core Fund (Dec. 30, 2002) S-6259-99 C S-6259-20 C
AXP Partners International Select Value Fund (Dec. 30, 2002) S-6242-99 E S-6242-20 E
AXP Partners International Small Cap Fund (Dec. 30, 2002) S-6258-99 C S-6258-20 C
AXP Partners Select Value Fund (July 30, 2002) S-6240-99 C S-6240-20 C
AXP Partners Small Cap Core Fund (July 30, 2002) S-6237-99 D S-6237-20 D
AXP Partners Small Cap Growth Fund (May 30, 2002) S-6301-99 D S-6301-20 D
AXP Partners Small Cap Growth Fund (May 30, 2003) S-6301-99 E S-6301-20 E
AXP Partners Small Cap Value Fund (July 30, 2002) S-6239-99 D S-6239-20 D
AXP Partners Value Fund (July 30, 2002) S-6238-99 D S-6238-20 D
AXP Precious Metals Fund (May 30, 2002) S-6142-99 W S-6142-20 W
AXP Precious Metals Fund (May 30, 2003) S-6142-99 X S-6142-20 X
AXP Progressive Fund (Nov. 29, 2002) S-6449-99 W S-6449-20 W
AXP Quantitative Large Cap Equity Fund (March 5, 2003) S-6263-99 A S-6263-20 A
AXP Research Opportunities Fund (Sept. 27, 2002) S-6356-99 K S-6356-20 K
S-6381-2 A (5/03)
* Valid until next prospectus and Statement of Additional Information update.
Destroy May 28, 2004
Fund Name (Date) Prospectus Form # SAI Form #
AXP Selective Fund (July 30, 2002) S-6376-99 W S-6376-20 W
AXP Small Cap Advantage Fund (May 30, 2002) S-6427-99 F S-6427-20 F
AXP Small Cap Advantage Fund (May 30, 2003) S-6427-99 G S-6427-20 G
AXP Small Company Index Fund (April 1, 2003) S-6357-99 L S-6357-20 L
AXP Stock Fund (Nov. 29, 2002) S-6351-99 W S-6351-20 W
AXP Strategy Aggressive Fund (May 30, 2002) S-6381-99 M S-6381-20 M
AXP Strategy Aggressive Fund (May 30, 2003) S-6381-99 N S-6381-20 N
AXP Tax-Exempt Bond Fund (Jan. 29, 2003) S-6310-99 X S-6310-20 X
AXP U.S. Government Mortgage Fund (July 30, 2002) S-6245-99 C S-6245-20 C
AXP Utilities Fund (Aug. 29, 2002) S-6341-99 W S-6341-20 W
For the prospectus
Under the heading "Fees and Expenses," footnote "b" has been modified to read as
follows:
[For All Funds]
(b) For Class A purchases over $1,000,000 on which no sales charge is assessed,
a 1% sales charge applies if you sell your shares less than one year after
purchase.
The table under "Investment Options" has been modified to read as follows:
[For Blue Chip Advantage, Bond, Discovery, Diversified Equity Income, Emerging
Markets, Equity Select, Equity Value, European Equity, Extra Income, Federal
Income, Focused Growth, Global Balanced, Global Bond, Global Growth, Global
Technology, Growth, Growth Dimensions, High Yield Tax-Exempt, International,
Insured Tax-Exempt, Intermediate Tax-Exempt, Large Cap Equity, Large Cap Value,
Managed Allocation, Mid Cap Value, Mutual, New Dimensions, Partners Aggressive
Growth, Partners Fundamental Value, Partners Growth, Partners International
Aggressive Growth, Partners International Core, Partners International Select
Value, Partners International Small Cap, Partners Select Value, Partners Small
Cap Core, Partners Small Cap Growth, Partners Small Cap Value, Partners Value,
Precious Metals, Progressive, Quantitative Large Cap Equity, Research
Opportunities, Small Cap Advantage, Stock, Strategy Aggressive, Tax-Exempt Bond,
U.S. Government Mortgage and Utilities]
Class A Class B Class C Class Y
- --------------- ----------------- ---------------- --------------- -------------
Availability Available to Available to Available to Limited to
all investors. all investors. all investors. qualifying
institutional
investors.
- --------------- ----------------- ---------------- --------------- -------------
Initial Sales Yes. Payable at No. Entire No. Entire No. Entire
Charge time of purchase price purchase purchase
purchase. Lower is invested in price is price is
sales charge shares of the invested in invested in
for larger Fund. shares of the shares of the
investments. Fund. Fund.
- --------------- ----------------- ---------------- --------------- -------------
Deferred Sales On purchases Maximum 5% 1% CDSC None.
Charge over CDSC during applies if
$1,000,000, 1% the first year you sell your
CDSC applies if decreasing to shares less
you sell your 0% after six than one year
shares less years. after
than one year purchase.
after purchase.
- --------------- ----------------- ---------------- --------------- -------------
Distribution Yes.* 0.25% Yes.* 1.00% Yes.* 1.00% Yes. 0.10%
and/or
Shareholder
Service Fee
- --------------- ----------------- ---------------- --------------- -------------
Conversion to N/A Yes, No. No.
Class A automatically
in ninth
calendar year
of ownership.
- --------------- ----------------- ---------------- --------------- -------------
* The Fund has adopted a plan under Rule 12b-1 of the Investment Company Act
of 1940 that allows it to pay distribution and servicing-related expenses
for the sale of Class A, Class B and Class C shares. Because these fees are
paid out of the Fund's assets on an on-going basis, the fees may cost
long-term shareholders more than paying other types of sales charges
imposed by some mutual funds.
[For California Tax-Exempt, Massachusetts Tax-Exempt, Michigan Tax-Exempt,
Minnesota Tax-Exempt, New York Tax-Exempt and Ohio Tax-Exempt]
Class A Class B Class C
- ------------------ ----------------- ---------------- -----------------
Availability Available to Available to Available to
all investors. all investors. all investors.
- ------------------ ----------------- ---------------- -----------------
Initial Sales Yes. Payable at No. Entire No. Entire
Charge time of purchase price purchase price
purchase. Lower is invested in is invested in
sales charge shares of the shares of the
for larger Fund. Fund.
investments.
- ------------------ ----------------- ---------------- -----------------
Deferred Sales On purchases Maximum 5% 1% CDSC applies
Charge over CDSC during if you sell
$1,000,000, 1% the first year your shares
CDSC applies if decreasing to less than one
you sell your 0% after six year after
shares less years. purchase.
than one year
after purchase.
- ------------------ ----------------- ---------------- -----------------
Distribution Yes.* 0.25% Yes.* 1.00% Yes.* 1.00%
and/or
Shareholder
Service Fee
- ------------------ ----------------- ---------------- -----------------
Conversion to N/A Yes, No.
Class A automatically
in ninth
calendar year
of ownership.
- ------------------ ----------------- ---------------- -----------------
* The Fund has adopted a plan under Rule 12b-1 of the Investment Company Act
of 1940 that allows it to pay distribution and servicing-related expenses
for the sale of Class A, Class B and Class C shares. Because these fees are
paid out of the Fund's assets on an on-going basis, the fees may cost
long-term shareholders more than paying other types of sales charges
imposed by some mutual funds.
2
The table under "Sales Charges" has been modified to read as follows:
[For Blue Chip Advantage, Discovery, Diversified Equity Income, Emerging
Markets, Equity Select, Equity Value, European Equity, Focused Growth, Global
Balanced, Global Growth, Global Technology, Growth, Growth Dimensions,
International, Large Cap Equity, Large Cap Value, Managed Allocation, Mid Cap
Value, Mutual, New Dimensions, Partners Aggressive Growth, Partners Fundamental
Value, Partners Growth, Partners International Aggressive Growth, Partners
International Core, Partners International Select Value, Partners International
Small Cap, Partners Select Value, Partners Small Cap Core, Partners Small Cap
Growth, Partners Small Cap Value, Partners Value, Precious Metals, Progressive,
Quantitative Large Cap Equity, Research Opportunities, Small Cap Advantage,
Small Company Index, Stock, Strategy Aggressive and Utilities]
Sales charge as percentage of:
Total market value Public offering price* Net amount invested
Up to $49,999 5.75% 6.10%
$50,000-$99,999 4.75 4.99
$100,000-$249,999 3.50 3.63
$250,000-$499,999 2.50 2.56
$500,000-$999,999 2.00 2.04
$1,000,000-$2,999,999 0.00 0.00
$3,000,000-$9,999,999 0.00 0.00
$10,000,000 or more 0.00 0.00
* Offering price includes the sales charge.
[For Bond, California Tax-Exempt, Extra Income, Federal Income, Global Bond,
High Yield Tax-Exempt, Insured Tax-Exempt, Intermediate Tax-Exempt,
Massachusetts Tax-Exempt, Michigan Tax-Exempt, Minnesota Tax-Exempt, New York
Tax-Exempt, Ohio Tax-Exempt, Selective, Tax-Exempt Bond and U.S. Government
Mortgage]
Sales charge as percentage of:
Total market value Public offering price* Net amount invested
Up to $49,999 4.75% 4.99%
$50,000-$99,999 4.25 4.44
$100,000-$249,999 3.50 3.63
$250,000-$499,999 2.50 2.56
$500,000-$999,999 2.00 2.04
$1,000,000 -$2,999,999 0.00 0.00
$3,000,000-$9,999,999 0.00 0.00
$10,000,000 or more 0.00 0.00
* Offering price includes the sales charge.
For the "Sales Charge" section under the heading "Waivers of the sales charge
for Class A shares," the sixth and seventh bullet points have been modified to
read as follows:
[For All Funds]
o Shareholders who have at least $1 million in American Express mutual funds.
If the investment is sold less than one year after purchase, a CDSC of 1%
will be charged. During that year, the CDSC will be waived for Class B and
Class C shares.
o Purchases made within 90 days after a sale of American Express Fund shares
(up to the amount sold). Send the Fund a written request along with your
payment, indicating the date and the amount of the sale.
3
For the Statement of Additional Information
The "Sales Charge" information has been modified to read as follows:
[For Blue Chip Advantage, Discovery, Diversified Equity Income, Emerging
Markets, Equity Select, Equity Value, European Equity, Focused Growth, Global
Balanced, Global Growth, Global Technology, Growth, Growth Dimensions,
International, Large Cap Equity, Large Cap Value, Managed Allocation, Mid Cap
Value, Mutual, New Dimensions, Partners Aggressive Growth, Partners Fundamental
Value, Partners Growth, Partners International Aggressive Growth, Partners
International Core, Partners International Select Value, Partners International
Small Cap, Partners Select Value, Partners Small Cap Core, Partners Small Cap
Growth, Partners Small Cap Value, Partners Value, Precious Metals, Progressive,
Quantitative Large Cap Equity, Research Opportunities, Small Cap Advantage,
Small Company Index, Stock, Strategy Aggressive and Utilities]
Class A -- Calculation of the Sales Charge
Sales charges are determined as follows:
Sales charge as a percentage of:
Total market value Public offering price Net amount invested
Up to $49,999 5.75% 6.10%
$50,000-$99,999 4.75 4.99
$100,000-$249,999 3.50 3.63
$250,000-$499,999 2.50 2.56
$500,000-$999,999 2.00 2.04
$1,000,000-$2,999,999 0.00 0.00
$3,000,000-$9,999,999 0.00 0.00
$10,000,000 or more 0.00 0.00
[For Bond, California Tax-Exempt, Extra Income, Federal Income, Global Bond,
High Yield Tax-Exempt, Insured Tax-Exempt, Intermediate Tax-Exempt,
Massachusetts Tax-Exempt, Michigan Tax-Exempt, Minnesota Tax-Exempt, New York
Tax-Exempt, Ohio Tax-Exempt, Selective, Tax-Exempt Bond and U.S. Government
Mortgage]
Class A -- Calculation of the Sales Charge
Sales charges are determined as follows:
Sales charge as a percentage of:
Total market value Public offering price Net amount invested
Up to $49,999 4.75% 4.99%
$50,000-$99,999 4.25 4.44
$100,000-$249,999 3.50 3.63
$250,000-$499,999 2.50 2.56
$500,000-$999,999 2.00 2.04
$1,000,000-$2,999,999 0.00 0.00
$3,000,000-$9,999,999 0.00 0.00
$10,000,000 or more 0.00 0.00
S-6381-2 A (5/03)
* Valid until next prospectus and Statement of Additional Information update.
Destroy May 28, 2004
4