N-30D 1 s6436_d.txt AXP INDEX FUNDS AXP(R) S&P 500 Index Fund AXP(R) Mid Cap Index Fund AXP(R) Total Stock Market Index Fund AXP(R) International Equity Index Fund AXP(R) Nasdaq 100 Index(R) Fund 2002 SEMIANNUAL REPORT -------------------------------------------------------------------------------- (logo) (logo) American AMERICAN Express(R) EXPRESS Funds (R) -------------------------------------------------------------------------------- From the Chairman (photo of) Arne H. Carlson Arne H. Carlson Chairman of the board Dear Shareholders, It is a very difficult period for investors caused by corporate management misconduct and its impact on the market as well as the economy. The integrity of corporations at large is being questioned. However, there is optimism that the resulting reforms will give Americans the kind of integrity they deserve. Many corporate leaders are strongly supportive of these reforms. We all have a right to expect financial statements to be fully accurate and business leaders to place the interests of shareholders above personal desires. Your Board is truly independent, comprised of 12 members (nominated by independent members) and three recommended by American Express Financial Corporation. These individuals come from a variety of geographic areas with the diverse skill sets necessary to oversee the operations of the Fund. Investment performance is, and remains, our primary concern. The Fund's auditors, KPMG LLP, are truly independent of American Express Financial Corporation. KPMG serves the interest of shareholders by supporting the work of the Board and certifying unbiased financial reports. The Board has confidence in Ted Truscott, American Express Financial Corporation's new Chief Investment Officer, and shares his enthusiasm in the management changes he has effected to improve the investment performance of all American Express funds. These changes include the hiring of several new portfolio managers and investment leaders and the addition of eight sub-advised funds. The focus of the Board and American Express Financial Corporation is simple; we strive for consistent, competitive investment performance. If you were a shareholder of record on September 14, you will receive a proxy statement for a shareholder meeting to be held on November 13, 2002. Please take time to consider each proposal and vote promptly. On behalf of the Board, Arne H. Carlson CONTENTS From the Chairman 2 Economic and Market Update 3 Fund Snapshots 5 Questions & Answers with Portfolio Management 10 Investments in Securities 21 Financial Statements 82 Notes to Financial Statements 89 -------------------------------------------------------------------------------- 2 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT 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, Major U.S. financial markets lost ground for the three-month period ending July 31, 2002, although a late rally put them above earlier lows. The same factors that have driven markets down for most of the year so far were still in play during this period. These include concerns about the truthfulness of accounting practices and the perception that stocks remain too expensive relative to company earnings. I expect we'll need to see consistent improvement in earnings before stocks rebound significantly. If corporate revenue growth becomes apparent and widespread, it will effectively make stock valuations cheaper. Increased demand should then have a positive impact on prices. Economic fundamentals have continued to look positive despite volatility in the financial markets. Inflation and interest rates remain low, unemployment and job growth are at reasonable levels, and there are signs that business spending is beginning to pick up. In addition, a weaker dollar should help U.S. companies that export goods overseas, even though it crimps our wallets when we travel abroad. These and other factors make it highly unlikely that we will experience a so-called "double-dip" recession. I remain optimistic about the direction of the economy and believe that, eventually, markets will start paying attention to these very favorable conditions. Nevertheless, we should remember that risk still exists. For one, bonds have been experiencing their own bear market. This has created something of a credit crunch for businesses, as liquidity declines and spreads widen. Related to this has been a crisis of confidence -- the unfortunate legacy of recent corporate scandal. In some cases, investors who thought they were buying high-quality corporate bonds were actually getting riskier high-yield securities due to dishonest accounting. Everyone agrees that some type of reform is needed, but the challenge for regulators will be to discourage misleading practices without sacrificing entrepreneurial incentive. Prudent regulation will boost confidence, while misguided efforts will simply make markets less efficient. What I think all investors need to understand is that we're still working through the excess capacity and inflated demand forecasts that were created in the late `90s. This process has been painful, but it has helped to reorient expectations to levels that are more sustainable. Historically speaking, the late `90s were an aberration and will likely not be repeated soon. -------------------------------------------------------------------------------- 3 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Economic and Market Update However, a more sober outlook need not be cause for special concern. We should all ask ourselves, "Have my goals changed in the last couple of years?" For many of us, the answer will be "no." If you're saving for long-term goals like retirement, I would still advise a substantial weighting in equities for your portfolio. Over time, stocks will probably continue to outperform bonds or other investments. And if you're in retirement or getting close, you may want to invest more heavily in bonds and cash, with a smaller portion devoted to equities. See your financial advisor or retirement plan administrator for more information about different types of securities and asset allocation. As always, thank you for investing with American Express Financial Advisors. William F. Truscott KEY POINTS -- Economic fundamentals remain positive. -- Credit "crunch" for business sector persists. -- Re-evaluation of personal financial goals key. -------------------------------------------------------------------------------- 4 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP S&P 500 Index Fund Fund Snapshot AS OF JULY 31, 2002 PORTFOLIO MANAGER Portfolio manager Jim Johnson Tenure/since 10/25/99 Years in industry 12 Portfolio manager David Factor Tenure/since 09/1/01 Years in industry 6 FUND OBJECTIVE For investors seeking long-term capital appreciation. Inception dates D: 10/25/99 E: 10/25/99 Ticker symbols D: ADIDX E: ADIEX Total net assets $258.3 million Number of holdings approximately 500 STYLE MATRIX Shading within the style matrix indicates areas in which the Fund generally invests. STYLE VALUE BLEND GROWTH X LARGE X MEDIUM SIZE SMALL PORTFOLIO ASSET MIX Percentage of portfolio assets (pie graph) Common stocks 98.6% Cash equivalents 1.4% TOP FIVE SECTORS Percentage of portfolio assets Health care 12.4% Banks and savings & loa 8.1 Retail 7.2 Financial services 7.0 Multi-industry conglome 6.0 TOP TEN HOLDINGS Percentage of portfolio assets General Electric 3.8% Microsoft 3.0 Exxon Mobil 2.9 Wal-Mart Stores 2.6 Pfizer 2.4 Citigroup 2.0 American Intl Group 2.0 Johnson & Johnson 1.9 Intel 1.5 Coca-Cola 1.5 Fund holdings are subject to change. -------------------------------------------------------------------------------- 5 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP Mid Cap Index Fund Fund Snapshot AS OF JULY 31, 2002 PORTFOLIO MANAGER Portfolio manager Jim Johnson Tenure/since 10/25/99 Years in industry 12 Portfolio manager David Factor Tenure/since 9/1/01 Years in industry 6 FUND OBJECTIVE For investors seeking long-term capital appreciation. Inception dates D: 10/25/99 E: 10/25/99 Ticker symbols D:-- E:-- Total net assets $27.4 million Number of holdings approximately 400 STYLE MATRIX Shading within the style matrix indicates areas in which the Fund generally invests. STYLE VALUE BLEND GROWTH LARGE X MEDIUM SIZE SMALL PORTFOLIO ASSET MIX Percentage of portfolio assets (pie graph) Common stocks 100% TOP FIVE SECTORS Percentage of portfolio assets Banks and savings & loa 10.3% Computers & office equi 7.0 Health care 6.4 Utilities -- electric 5.9 Retail 5.5 TOP TEN HOLDINGS Percentage of portfolio assets S&P Mid-Cap 400 Depositary Receipts 2.8% M&T Bank 1.0 IDEC Pharmaceuticals 0.9 Affiliated Computer Ser 0.8 Washington Post Cl B 0.8 Gilead Sciences 0.8 Quest Diagnostics 0.8 Natl Commerce Financial 0.7 RJ Reynolds Tobacco Hol 0.7 Weatherford Intl 0.7 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. -------------------------------------------------------------------------------- 6 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP Total Stock Market Index Fund Fund Snapshot AS OF JULY 31, 2002 PORTFOLIO MANAGER Portfolio manager Jim Johnson Tenure/since 10/25/99 Years in industry 12 Portfolio manager David Factor Tenure/since 9/1/01 Years in industry 6 FUND OBJECTIVE For investors seeking long-term capital appreciation. Inception dates D: 10/25/99 E: 10/25/99 Ticker symbols D:-- E:-- Total net assets $27.7 million Number of holdings approximately 1,950 STYLE MATRIX Shading within the style matrix indicates areas in which the Fund generally invests. STYLE VALUE BLEND GROWTH X LARGE X MEDIUM SIZE X SMALL PORTFOLIO ASSET MIX Percentage of portfolio assets (pie graph) Common stocks 100% TOP FIVE SECTORS Percentage of portfolio assets Health care 11.2% Banks and savings & loa 8.5 Retail 6.8 Multi-industry conglome 6.3 Financial services 6.2 TOP TEN HOLDINGS Percentage of portfolio assets General Electric 3.0% Microsoft 2.5 Exxon Mobil 2.4 Wal-Mart Stores 2.1 Pfizer 1.9 Citigroup 1.6 American Intl Group 1.6 Johnson & Johnson 1.5 Intel 1.2 Coca-Cola 1.2 Stocks of small- or medium-sized compaines may be subject to more abrupt or erratic price movements than stocks of larger companies. Some of these companies have fewer financial resources. Fund holdings are subject to change. -------------------------------------------------------------------------------- 7 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP International Equity Index Fund Fund Snapshot AS OF JULY 31, 2002 PORTFOLIO MANAGER Portfolio manager Lynne Dombroski Tenure/since 3/1/01 Years in industry 15 Portfolio manager Adele Kohler Tenure/since 10/25/99 Years in industry 8 FUND OBJECTIVE For investors seeking long-term capital appreciation. Inception dates D: 10/25/99 E: 10/25/99 Ticker symbols D:-- E:-- Total net assets $18.2 million Number of holdings approximately 860 STYLE MATRIX Shading within the style matrix indicates areas in which the Fund generally invests. STYLE VALUE BLEND GROWTH X LARGE MEDIUM SIZE SMALL PORTFOLIO ASSET MIX Percentage of portfolio assets (pie graph) Common stocks 97.2% Cash equivalents 2.7% Other 0.1% TOP TEN HOLDINGS Percentage of portfolio assets BP 2.9% Novartis 2.1 GlaxoSmithKline 2.0 Royal Dutch Petroleum 1.8 HSBC Holdings 1.8 Vodafone AirTouch 1.7 Total Fina Cl B 1.6 Nestle 1.6 Royal Bank of Scotland 1.2 Shell Transport & Tradi 1.1 TOPFIVECOUNTRIES Percentage of portfolio assets United Kingdom 25.1% Japan 22.5 France 8.8 Switzerland 8.1 Germany 6.6 There are special risk considerations associated with international investing related to market, currency, economic, political and other factors. Fund holdings are subject to change. -------------------------------------------------------------------------------- 8 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP Nasdaq 100 Index Fund Fund Snapshot AS OF JULY 31, 2002 PORTFOLIO MANAGER Portfolio manager Jim Johnson Tenure/since 10/25/99 Years in industry 12 Portfolio manager David Factor Tenure/since 9/1/01 Years in industry 6 FUND OBJECTIVE For investors seeking long-term capital appreciation. Inception dates D: 10/25/99 E: 10/25/99 Ticker symbols D: INDDX E: AXIEX Total net assets $17.9 million Number of holdings approximately 100 STYLE MATRIX Shading within the style matrix indicates areas in which the Fund generally invests. STYLE VALUE BLEND GROWTH X LARGE X MEDIUM SIZE SMALL PORTFOLIO ASSET MIX Percentage of portfolio assets (pie graph) Common stocks 98.3% Cash equivalents 1.7% TOP FIVE SECTORS Percentage of portfolio assets Computer software & services 23.0% Electronics 17.9 Computers & office equipment 17.6 Health care 13.1 Communications equipment & services 6.1 TOP TEN HOLDINGS Percentage of portfolio assets Microsoft 12.3% Intel 6.1 Cisco Systems 4.8 Amgen 3.8 QUALCOMM 3.5 Dell Computer 3.3 Oracle 3.2 Maxim Integrated Products 2.2 Applied Materials 1.7 Bed Bath & Beyond 1.7 Stocks of small- or medium-sized companies may be subject to more abrupt or erratic price movements than stocks of larger companies. Some of these companies also have fewer financial resources. Fund holdings are subject to change. -------------------------------------------------------------------------------- 9 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers WITH PORTFOLIO MANAGEMENT AXP S&P 500 Index Fund -- AXP Mid Cap Index Fund AXP Total Stock Market Index Fund -- AXP Nasdaq 100 Index Fund Portfolio Managers: Jim Johnson and David Factor Q: How did the Class D shares for the Funds perform for the six-month period ended July 31, 2002? A: The six months proved to be extremely challenging for equity markets, with all major market indices logging downturns during the period. In this environment, AXP S&P 500 Index Fund returned -18.81%, closely tracking the Standard & Poor's 500 Composite Stock Price Index (the S&P 500 Index), which returned -18.74% for the same period. The Lipper S&P 500 Funds Index generated a return of -18.83%. (bar graph) PERFORMANCE COMPARISON For the six-month period ended July 31, 2002 -0% -5% -10% -15% (bar 1) (bar 2) (bar 3) -20% -18.81% -18.74% -18.83% (bar 1) AXP S&P 500 Index Fund Class D (bar 2) S&P 500 Index(1) (unmanaged) (bar 3) Lipper S&P 500 Funds Index(2) (1) Standard & Poor's 500 Composite Stock Price Index (S&P 500 Index), an unmanaged list of common stocks, is frequently used as a general measure of market performance. The index reflects reinvestment of all distributions and changes in market prices, but excludes brokerage commissions or other fees. (2) The Lipper S&P 500 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 performance of Class E may vary from that shown above because of differences in fees. The indices do not reflect the effects of expenses (excluding Lipper) and taxes. -------------------------------------------------------------------------------- 10 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers AXP S&P 500 Index Fund -- AXP Mid Cap Index Fund AXP Total Stock Market Index Fund -- AXP Nasdaq 100 Index Fund AXP Mid Cap Index Fund returned -12.39% for the six months while its benchmark, the Standard & Poor's MidCap 400 Index (the S&P MidCap 400 Index) returned -12.14%. The Lipper Mid-Cap Core Funds Index returned -15.74% for the same period. (begin callout quote)> With ongoing questions about accounting issues and uncertainty related to rising global tensions, it is likely that the equity markets will remain quite volatile in the months to come. (end callout quote) (bar graph) PERFORMANCE COMPARISON For the six-month period ended July 31, 2002 -0% -5% -10% -15% (bar 1) (bar 2) (bar 3) -20% -12.39% -12.14% -15.74% (bar 1) AXP Mid Cap Index Fund Class D (bar 2) S&P MidCap 400 Index(1) (unmanaged) (bar 3) Lipper Mid-Cap Core Funds Index(2) (1) Standard & Poor's MidCap 400 Index (S&P MidCap 400 Index), an unmanaged market-weighted index, consists of 400 domestic stocks chosen for market size, liquidity and industry group representation. The index reflects reinvestment of all distributions and changes in market prices, but excludes brokerage commissions or other fees. (2) The Lipper Mid-Cap Core 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 performance of Class E may vary from that shown above because of differences in fees. The indices do not reflect the effects of expenses (excluding Lipper) and taxes. -------------------------------------------------------------------------------- 11 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers AXP S&P 500 Index Fund -- AXP Mid Cap Index Fund AXP Total Stock Market Index Fund -- AXP Nasdaq 100 Index Fund AXP Total Stock Market Index Fund returned -18.32% for the six months, closely tracking its benchmark, the Wilshire 5000 Total Market Index (the Wilshire 5000 Index), which returned -17.87% over the same period. (bar graph) PERFORMANCE COMPARISON For the six-month period ended July 31, 2002 -0% -5% -10% -15% (bar 1) (bar 2) -20% -18.32% -17.87% (bar 1) AXP Total stock Market Index Fund Class D (bar 2) Wilshire 5000 Total Market Index(1) (unmanaged) (1) Wilshire 5000 Total Market Index is an unmanaged index of U.S. common stocks regularly traded on the New York and American Stock exchanges and the Nasdaq over-the-counter market. Past performance is no guarantee of future results. The performance of Class E may vary from that shown above because of differences in fees. The index does not reflect the effects of expenses and taxes. -------------------------------------------------------------------------------- 12 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers AXP S&P 500 Index Fund -- AXP Mid Cap Index Fund AXP Total Stock Market Index Fund -- AXP Nasdaq 100 Index Fund AXP Nasdaq 100 Index Fund returned -38.14% during the six-month span, similar to its benchmark, the Nasdaq 100 Index, which returned -37.94%. (bar graph) PERFORMANCE COMPARISON For the six-month period ended July 31, 2002 -0% -10% -20% -30% (bar 1) (bar 2) -40% -38.14% -37.94% (bar 1) AXP AXP Nasdaq 100 Index Fund Class D (bar 2) Nasdaq 100 Index(1) (unmanaged) (1) Nasdaq 100 Index, an unmanaged index, includes the largest and most active non-financial domestic and international companies listed on the Nasdaq Stock Market. The fund invests in all stocks in the Nasdaq 100 in approximately the same proportions. Past performance is no guarantee of future results. The performance of Class E may vary from that shown above because of differences in fees. The index does not reflect the effects of expenses and taxes. -------------------------------------------------------------------------------- 13 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers AXP S&P 500 Index Fund n AXP Mid Cap Index Fund AXP Total Stock Market Index Fund n AXP Nasdaq 100 Index Fund Q: Did you make significant changes to the Funds during this period? A: Changes are only made to these Funds in an effort to maintain consistency with each of the respective indices they track. During the period, only minor changes were made to each of the indices, and we made appropriate adjustments to each Fund to follow suit. Some changes are the result of merger and acquisition activity. In some cases, stocks may move from one index to another (such as a small-cap stock achieving mid-cap status) and in other cases, stocks are de-listed from an index. This happened in several cases over the past six months as issues related to corporate accounting scandals came to light. Q: What is your outlook for the next six months? A: The bear market environment that began for equity markets more than two years ago has continued in full force. With ongoing questions about accounting issues and uncertainty related to rising global tensions, it is likely that the equity markets will remain quite volatile in the months to come. On the positive side, the U.S. economy has moved out of the recession that sidetracked it in 2001, and is again growing. If that situation persists, it eventually should translate to improved corporate profits, which can contribute to a more favorable environment for equity investors. Q: How are you positioning the Funds in light of your outlook? A: As is always the case, market conditions will not alter the structure of these Funds. They will remain virtually fully invested in the stocks represented in their respective indices in order to generate returns that generally track the performance of each index. Shareholders should consider their investment in these Funds to be part of a long-term portfolio commitment. -------------------------------------------------------------------------------- 14 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers AXP S&P 500 Index Fund Q: What factors affected Fund performance during the six-month period? A: Large-cap stocks, the emphasis of this Index, tended to be one of the weakest categories in a struggling stock market during the six months. This fact was reflected in the performance of the S&P 500 Index, which this Fund closely tracks. The Index lost ground in each month of the period except March. Although economic signals were generally positive, many stocks were battered by ongoing investor uncertainty. This was triggered by continued fears of terrorism, growing global tensions and repeated disclosures related to corporate accounting. For much of the period, food, beverage and tobacco stocks performed reasonably well and were the biggest contributors to performance. However, most sectors of the market lost ground during the period, most notably stocks in the troubled technology and telecommunications sectors. Health care issues, specifically the pharmaceutical and biotechnology sectors, also significantly lagged the market. AVERAGE ANNUAL TOTAL RETURNS as of July 31, 2002 At Net Asset Value (NAV) Class D Class E 6 months** -18.81% -18.76% 1 year -23.93% -23.74% 5 years N/A N/A 10 years N/A N/A Since inception -11.39%* -11.17%* * Inception date was Oct. 25, 1999. ** Not annualized. 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 fees. Short term performance may be higher or lower than the figures shown. Visit americanexpress.com for current information. -------------------------------------------------------------------------------- 15 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers AXP Mid Cap Index Fund Q: What factors affected Fund performance during the six-month period? A: Mid-cap stocks began the period with positive performance in February and March, but the situation changed beginning in April and the S&P MidCap 400 Index, which is replicated in this Fund, declined for the remainder of the period. Again, issues related to corporate accounting scandals and world tensions took precedence over improving economic fundamentals. Stocks of consumer durable companies performed relatively well during the period, while a number of sectors struggled, including technology, telecommunications, pharmaceutical, biotechnology and diversified financial company stocks. AVERAGE ANNUAL TOTAL RETURNS as of July 31, 2002 At Net Asset Value (NAV) Class D Class E 6 months** -12.39% -12.37% 1 year -13.27% -13.22% 5 years N/A N/A 10 years N/A N/A Since inception +5.63%* +5.87%* * Inception date was Oct. 25, 1999. ** Not annualized. 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 fees. Short term performance may be higher or lower than the figures shown. Visit americanexpress.com for current information. -------------------------------------------------------------------------------- 16 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers AXP Total Stock Market Index Fund Q: What factors affected Fund performance during the six-month period? A: This Fund seeks to track the performance of the Wilshire 5000 Index, an instrument that is used to measure performance of the U.S. stock market as a whole. The Fund owns about one-third of the 6,000 stocks that actually make up the Index. This allows us to track the performance of the Index relatively closely. The Index declined in each of the six months during the period except March, as investors confidence in the stock market continued to lag. Consumer stocks such as food, beverage and tobacco companies performed reasonably well during the period. However, poorly performing sectors were prevalent, including technology, telecommunication, pharmaceutical and biotechnology stocks. AVERAGE ANNUAL TOTAL RETURNS as of July 31, 2002 At Net Asset Value (NAV) Class D Class E 6 months** -18.32% -18.32% 1 year -22.84% -22.83% 5 years N/A N/A 10 years N/A N/A Since inception -10.50%* -10.34%* * Inception date was Oct. 25, 1999. ** Not annualized. 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 fees. Short term performance may be higher or lower than the figures shown. Visit americanexpress.com for current information. -------------------------------------------------------------------------------- 17 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers AXP Nasdaq 100 Index Fund Q: What factors affected Fund performance during the six-month period? A: This technology-heavy index demonstrated significant weakness during the period, including double-digit declines in four of the six months. As had been the case dating back to early 2000, technology-oriented stocks have been battered as investors indicated their disappointment with the lack of earnings growth in this sector of the market. During this challenging span, there were few positive contributors to performance. Significant weakness in technology, telecommunications, media and pharmaceutical companies caused the Fund (consistent with the Index) to lose ground. AVERAGE ANNUAL TOTAL RETURNS as of July 31, 2002 At Net Asset Value (NAV) Class D Class E 6 months** -38.14% -38.02% 1 year -43.19% -43.23% 5 years N/A N/A 10 years N/A N/A Since inception -29.68%* -29.55%* * Inception date was Oct. 25, 1999. ** Not annualized. 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 fees. Short term performance may be higher or lower than the figures shown. Visit americanexpress.com for current information. -------------------------------------------------------------------------------- 18 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers AXP International Equity Index Fund Portfolio Managers: Lynne Dombroski and Adele Kohler Q: How did the Class D shares for the Fund perform over the six-month period ended July 31, 2002? A: The Fund slightly underperformed its benchmark for the period, returning -6.50% versus the Morgan Stanley Capital International Europe, Australasia, Far East (EAFE) Index, which returned -6.12% over the same six-month period. The Lipper International Funds Index returned -5.71% in the same time period. Q: What factors most significantly impacted performance? A: The Fund is designed to very closely track the MSCI EAFE Index; however, due to Fund expenses and management of cash flows in and out of the Fund, its performance slightly lags that of the Index. Investors continue to face a number of issues, significantly weighing on sentiment. Factors include economic uncertainty, concerns over corporate governance and profitability, debt defaults, and high-profile bankruptcies. While this is a very difficult process to go through, it is not atypical of post "market bubble" periods. (begin callout quote)> We believe global economies are working through the spending boom of the late nineties, subduing an otherwise normal recovery. (end callout quote) (bar graph) PERFORMANCE COMPARISON For the six-month period ended July 31, 2002 -0% -2% -4% (bar 3) -6% (bar 1) (bar 2) -5.71% -8% -6.50% -6.12% (bar 1) AXP International Equity Index Fund Class D (bar 2) MSCI EAFE Index(1) (unmanaged) (bar 3) Lipper International Funds Index(2) (1) Morgan Stanley Capital International EAFE Index (MSCI EAFE), an unmanaged index, is compiled from a composite of securities markets of Europe, Australia and the Far East. The index is widely recognized by investors in foreign markets as the measurement index for portfolios of non-North American securities. The index reflects reinvestment of all distributions and changes in market prices, but excludes brokerage commissions or other fees. (2) The Lipper International 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 performance of Class E may vary from that shown above because of differences in fees. The indices do not reflect the effects of expenses (excluding Lipper) and taxes. -------------------------------------------------------------------------------- 19 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Questions & Answers AXP International Equity Index Fund Q: What is your outlook for the months ahead? A: Our view on international markets remains largely unchanged. We believe global economies are working through the spending boom of the late nineties, subduing an otherwise normal recovery. European economies continue to improve albeit at different paces. The Japanese economy continues to be led by exports, but is showing signs of domestic recovery as well. One international bright spot is non-Japan Asia, which is still showing solid growth. With a subdued economic recovery as the backdrop, we believe markets will take some time to work through the concerns discussed above. Valuations are attractive by most conventional measures, especially given the very low interest rate environment. We believe that most of the excess U.S. dollar over-evaluation has been washed out in recent months, but we recognize that some yen and euro appreciation is likely as we move through the end of the year. NOTE TO SHAREHOLDERS: Shareholders will be asked to approve liquidating the Fund at a shareholder meeting on Nov. 13, 2002. This approval is not guaranteed. If shareholder approval is obtained, no new purchases or exchanges into the Fund will be allowed, although existing shareholders may redeem or exchange out of the Fund. AVERAGE ANNUAL TOTAL RETURNS as of July 31, 2002 At Net Asset Value (NAV) Class D Class E 6 months** -6.50% -6.48% 1 year -17.46% -17.31% 5 years N/A N/A 10 years N/A N/A Since inception -13.51%* -12.95%* * Inception date was Oct. 25, 1999. ** Not annualized. 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 fees. Short term performance may be higher or lower than the figures shown. Visit americanexpress.com for current information. -------------------------------------------------------------------------------- 20 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Investments in Securities AXP S&P 500 Index Fund July 31, 2002 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (98.3%) Issuer Shares Value(a) Aerospace & defense (1.7%) Boeing 25,344 $1,052,283 General Dynamics 6,096 493,288 Goodrich 3,077 68,648 Lockheed Martin 13,613 872,729 Northrop Grumman 3,408 377,266 Raytheon 12,027 391,840 Rockwell Automation 5,590 103,415 Rockwell Collins 5,519 141,838 United Technologies 14,290 993,155 Total 4,494,462 Airlines (0.2%) AMR 4,678(b) 52,300 Delta Air Lines 3,720 57,958 Southwest Airlines 23,311 321,925 Total 432,183 Automotive & related (1.1%) Cooper Tire & Rubber 2,206 44,142 Cummins 1,244 40,181 Dana 4,482 72,071 Delphi 16,944 168,762 Eaton 2,119 147,949 Ford Motor 54,753 737,522 General Motors 16,943 788,696 Genuine Parts 5,262 161,596 Goodyear Tire & Rubber 4,922 85,840 Johnson Controls 2,679 217,053 Navistar Intl 1,820 46,938 PACCAR 3,494 133,995 Snap-On 1,753 47,629 TRW 3,843 207,330 Visteon 3,946 43,958 Total 2,943,662 Banks and savings & loans (8.1%) AmSouth Bancorporation 10,917 243,667 Bank of America 46,501 3,092,316 Bank of New York 21,993 704,216 Bank One 35,454 1,379,515 BB&T 14,475 535,865 Charter One Financial 6,783 230,079 Comerica 5,322 309,528 Fifth Third Bancorp 17,788 1,175,253 First Tennessee Natl 3,825 143,170 FleetBoston Financial 31,624 733,677 Golden West Financial 4,674 307,316 Huntington Bancshares 7,461 147,280 J.P. Morgan Chase 60,142 1,501,143 KeyCorp 12,867 337,887 Marshall & Ilsley 6,412 192,937 Mellon Financial 13,322 354,099 Natl City 18,395 568,406 North Fork Bancorporation 4,950 201,020 Northern Trust 6,701 266,901 PNC Financial Services Group 8,581 361,689 Regions Financial 6,925 243,968 SouthTrust 10,468 264,212 SunTrust Banks 8,645 568,841 Synovus Financial 8,918 214,032 U.S. Bancorp 57,745 1,235,166 Union Planters 6,121 187,547 Wachovia 41,336 1,479,829 Washington Mutual 29,430 1,100,976 Wells Fargo 51,670 2,627,935 Zions Bancorp 2,764 139,610 Total 20,848,080 Beverages & tobacco (4.4%) Anheuser-Busch 26,477 1,369,126 Brown-Forman Cl B 2,056 139,356 Coca-Cola 75,022 3,746,599 Coca-Cola Enterprises 13,494 251,258 Coors (Adolph) Cl B 1,084 65,484 Fortune Brands 4,533 237,076 Pepsi Bottling Group 8,538 211,059 PepsiCo 53,401 2,293,039 Philip Morris 64,629(d) 2,976,165 UST 5,104 150,211 Total 11,439,373 See accompanying notes to investments in securities.
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AXP S&P 500 Index Fund Common stocks (continued) Issuer Shares Value(a) Building materials & construction (0.6%) Centex 1,840 $ 88,228 Fluor 2,432 78,067 Georgia-Pacific 6,950 152,205 KB HOME 1,546 71,441 Louisiana-Pacific 3,151 24,956 Masco 14,616 353,707 Pulte Homes 1,830 87,694 Sherwin-Williams 4,609 132,417 Temple-Inland 1,593 85,544 Vulcan Materials 3,057 123,625 Weyerhaeuser 6,597 387,573 Total 1,585,457 Chemicals (1.7%) Air Products & Chemicals 6,860 303,555 Allied Waste Inds 5,953(b) 39,290 Dow Chemical 27,419 791,586 du Pont (EI) de Nemours 30,000 1,257,299 Eastman Chemical 2,332 103,354 Ecolab 3,888 178,654 Engelhard 3,913 97,825 Great Lakes Chemical 1,512 37,997 Hercules 3,285(b) 34,821 Millipore 1,455 48,161 Pall 3,704 65,116 PPG Inds 5,095 292,453 Praxair 4,939 258,310 Rohm & Haas 6,671 250,163 Sigma-Aldrich 2,204 105,616 Waste Management 18,673 441,989 Total 4,306,189 Communications equipment & services (2.1%) ADC Telecommunications 23,982(b) 43,168 Andrew Corp 2,955(b) 33,244 AT&T Wireless Services 81,736(b) 383,342 Avaya 10,902(b) 16,244 Broadcom Cl A 8,111(b) 152,162 CIENA 13,002(b) 52,398 JDS Uniphase 41,122(b) 104,039 Lucent Technologies 103,491(b) 181,109 Motorola 68,589 795,632 QUALCOMM 23,250(b) 638,910 Scientific-Atlanta 4,726 59,784 Tellabs 12,401(b) 71,058 Teradyne 5,520(b) 82,800 Verizon Communications 82,251 2,714,283 Total 5,328,173 Computer software & services (4.7%) Adobe Systems 7,239 173,446 Autodesk 3,460 44,599 Automatic Data Processing 18,737 698,703 BMC Software 7,324(b) 98,508 Electronic Arts 4,165(b) 250,650 Intuit 6,391(b) 281,076 Lexmark Intl Cl A 3,918(b) 191,512 Microsoft 163,562(b,d) 7,842,798 Oracle 165,848(b) 1,659,973 Parametric Technology 7,876(b) 24,573 PeopleSoft 9,379(b) 168,634 SunGard Data Systems 8,520(b) 199,794 VERITAS Software 12,359(b) 208,002 Yahoo! 18,053(b) 237,758 Total 12,080,026 Computers & office equipment (5.8%) Apple Computer 10,739(b) 163,877 Cisco Systems 221,129(b) 2,916,692 Citrix Systems 5,487(b) 30,233 Computer Associates Intl 17,476 163,226 Computer Sciences 5,164(b) 191,068 Compuware 11,276(b) 41,834 Comverse Technology 5,642(b) 44,910 Concord EFS 15,417(b) 300,632 Convergys 5,221(b) 78,942 Dell Computer 78,400(b) 1,954,512 Deluxe 1,910 74,280 Electronic Data Systems 14,467 531,952 EMC 67,151(b) 503,633 Equifax 4,365 92,538 First Data 23,094 807,135 Fiserv 5,773(b) 198,649 Gateway 9,781(b) 33,255 Hewlett-Packard 91,192 1,290,367 Intl Business Machines 51,711 3,640,453 Mercury Interactive 2,523(b) 64,639 NCR 2,970(b) 78,141 Network Appliance 10,083(b) 85,302 Novell 10,945(b) 24,407 NVIDIA 4,509(b) 49,915 Palm 17,487(b) 19,061 Pitney Bowes 7,269 283,491 QLogic 2,801(b) 114,141 Rational Software 5,863(b) 39,399 SABRE Holdings Cl A 4,358(b) 115,574 Sanmina-SCI 15,820(b) 64,387 See accompanying notes to investments in securities.
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AXP S&P 500 Index Fund Common stocks (continued) Issuer Shares Value(a) Computers & office equipment (cont.) Siebel Systems 14,306(b) $ 134,476 Solectron 24,849(b) 99,396 State Street 9,829 417,733 Sun Microsystems 98,051(b) 384,360 Unisys 9,717(b) 73,072 TOTAL 15,105,682 Electronics (3.4%) Advanced Micro Devices 10,312(b) 82,805 Agilent Technologies 14,027(b) 264,830 Altera 11,602(b) 137,252 American Power Conversion 5,909(b) 64,704 Analog Devices 11,027(b) 265,751 Applied Materials 49,476(b) 735,708 Applied Micro Circuits 9,036(b) 41,656 Corning 28,694(b) 45,910 Intel 201,940 3,794,454 Jabil Circuit 5,957(b) 105,975 KLA-Tencor 5,712(b) 224,996 Linear Technology 9,587 259,616 LSI Logic 11,164(b) 87,079 Maxim Integrated Products 9,756(b) 343,216 Micron Technology 18,168(b) 354,094 Molex 5,841 170,440 Natl Semiconductor 5,412(b) 98,011 Novellus Systems 4,379(b) 118,189 PerkinElmer 3,789 28,872 PMC-Sierra 5,018(b) 47,922 Power-One 2,382(b) 10,862 Symbol Technologies 6,917 63,221 Tektronix 2,750(b) 51,260 Texas Instruments 52,389 1,212,805 Thomas & Betts 1,759(b) 25,892 Vitesse Semiconductor 6,059(b) 14,663 Xilinx 10,132(b) 194,433 Total 8,844,616 Energy (5.3%) Amerada Hess 2,683 183,517 Anadarko Petroleum 7,504 326,424 Apache 4,334 223,201 Ashland 2,090 74,550 Burlington Resources 6,075 222,041 ChevronTexaco 32,243 2,418,225 Conoco 18,928 456,543 Devon Energy 4,722 196,813 EOG Resources 3,499 119,981 Exxon Mobil 204,844 7,530,066 FirstEnergy 8,986 276,320 Kerr-McGee 3,021 141,292 Marathon Oil 9,351 226,668 Occidental Petroleum 11,322 306,713 Phillips Petroleum 11,561 598,282 Sunoco 2,297 81,635 Unocal 7,392 241,423 Total 13,623,694 Energy equipment & services (0.9%) Baker Hughes 10,190 273,092 BJ Services 4,725(b) 150,680 Halliburton 13,155 173,646 McDermott Intl 1,901(b) 8,916 Nabors Inds 4,352(b,c) 132,823 Noble 4,057(b) 131,447 Progress Energy 6,682 312,384 Reliant Energy 9,168 92,230 Rowan Companies 2,830 55,383 Schlumberger 17,438 748,438 Transocean 9,640 245,820 Total 2,324,859 Financial services (6.9%) American Express 40,173 1,416,500 Bear Stearns Companies 3,004 180,901 Capital One Financial 6,642 210,551 Citigroup 155,463 5,214,230 Countrywide Credit Inds 3,728 189,420 Fannie Mae 30,119 2,255,612 Franklin Resources 7,909 271,516 Freddie Mac 20,997 1,300,764 Goldman Sachs Group 14,315 1,047,142 H&R Block 5,540 267,471 Household Intl 13,788 588,334 Lehman Brothers Holdings 7,369 417,896 MBNA 38,592 748,299 Merrill Lynch 26,062 929,110 MGIC Investment 3,195 201,285 Morgan Stanley 33,277 1,342,727 Paychex 11,328 298,040 Providian Financial 8,712 43,734 Schwab (Charles) 41,421 370,718 See accompanying notes to investments in securities.
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AXP S&P 500 Index Fund Common stocks (continued) Issuer Shares Value(a) Financial services (cont.) SLM 4,694 $ 427,154 Stilwell Financial 6,713 90,961 T. Rowe Price Group 3,732 100,876 Total 17,913,241 Food (1.5%) Archer-Daniels-Midland 19,678 230,233 Campbell Soup 12,395 288,804 ConAgra Foods 16,225 407,410 General Mills 11,067 458,727 Heinz (HJ) 10,581 406,839 Hershey Foods 4,120 323,255 Kellogg 12,360 425,678 Sara Lee 23,696 444,063 SUPERVALU 4,014 83,652 Sysco 20,036 521,937 Wrigley (Wm) Jr 6,804 348,025 Total 3,938,623 Furniture & appliances (0.2%) Black & Decker 2,426 110,383 Leggett & Platt 5,912 132,962 Maytag 2,334 77,325 Stanley Works 2,568 92,679 Whirlpool 2,052 117,723 Total 531,072 Health care (12.4%) Abbott Laboratories 47,140 1,952,067 Allergan 3,899 235,851 Amgen 38,728(b) 1,767,535 Applera-Applied Biosystem Group 6,408 119,573 Bard (CR) 1,584 85,647 Bausch & Lomb 1,623 53,689 Baxter Intl 18,158 724,686 Becton, Dickinson & Co 7,805 226,813 Biogen 4,487(b) 161,397 Biomet 8,091 209,800 Boston Scientific 12,267(b) 367,887 Bristol-Myers Squibb 58,551 1,371,850 Chiron 5,739(b) 193,634 Forest Laboratories 5,395(b) 417,951 Genzyme-General Division 6,449(b) 146,908 Guidant 9,242(b) 321,622 Johnson & Johnson 90,951 4,820,402 King Pharmaceuticals 7,491(b) 158,884 Lilly (Eli) 33,960 1,983,943 MedImmune 7,555(b) 224,686 Medtronic 36,675 1,481,670 Merck & Co 68,414 3,393,333 Pfizer 188,611 6,101,565 Pharmacia 39,059 1,747,500 Schering-Plough 44,288 1,129,344 St. Jude Medical 5,318(b) 202,084 Stryker 5,965 301,948 Waters 3,967(b) 90,091 Watson Pharmaceuticals 3,208(b) 67,593 Wyeth 40,063 1,598,514 Zimmer Holdings 5,860(b) 218,168 Total 31,876,635 Health care services (1.9%) Aetna 4,402 192,279 AmerisourceBergen 3,169 212,291 Anthem 4,275(b) 290,187 Cardinal Health 13,646 786,009 HCA 15,527 729,769 Health Management Associates Cl A 7,279(b) 147,254 Healthsouth 11,878(b) 121,750 Humana 5,102(b) 62,806 IMS Health 8,716 137,887 Manor Care 3,022(b) 66,454 McKesson 8,678 285,680 Quintiles Transnational 3,585(b) 35,599 Tenet Healthcare 14,770(b) 703,791 UnitedHealth Group 9,307 815,851 Wellpoint Health Networks 4,385(b) 313,528 Total 4,901,135 Household products (2.9%) Alberto-Culver Cl B 1,736 82,477 Avon Products 7,141 330,343 Clorox 6,961 267,999 Colgate-Palmolive 16,525 848,559 Gillette 31,925 1,049,694 Intl Flavors/Fragrances 2,846 87,059 Kimberly-Clark 15,674 956,898 Newell Rubbermaid 8,058 242,385 Procter & Gamble 39,253 3,493,124 Tupperware 1,758 30,501 Total 7,389,039 See accompanying notes to investments in securities.
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AXP S&P 500 Index Fund Common stocks (continued) Issuer Shares Value(a) Industrial equipment & services (0.8%) Caterpillar 10,387 $ 464,299 Cintas 5,128 225,063 Cooper Inds Cl A 2,807 87,410 Deere & Co 7,185 301,914 Illinois Tool Works 9,251 610,474 Ingersoll-Rand Cl A 5,106(c) 196,019 Parker-Hannifin 3,548 142,842 Thermo Electron 5,205(b) 88,381 Total 2,116,402 Insurance (5.0%) ACE 7,916(c) 250,700 AFLAC 15,654 491,692 Allstate 21,425 814,364 Ambac Financial Group 3,196 201,444 American Intl Group 78,918 5,044,438 Aon 8,212 195,035 Chubb 5,178 336,000 CIGNA 4,260 383,400 Cincinnati Financial 4,895 196,241 Hartford Financial Services Group 7,480 378,488 Jefferson-Pilot 4,536 197,089 John Hancock Financial Services 8,891 294,292 Lincoln Natl 5,648 207,225 Loews 5,706 270,693 Marsh & McLennan 16,548 792,649 MBIA 4,459 221,122 MetLife 21,309 600,701 Principal Financial Group 10,830(b) 310,929 Progressive 6,649 340,096 Prudential Financial 17,715(b) 584,418 SAFECO 3,855 122,358 St. Paul Companies 6,760 210,980 Torchmark 3,662 132,711 UnumProvident 7,337 150,115 XL Capital Cl A 4,091(c) 303,143 Total 13,030,323 Leisure time & entertainment (2.0%) AOL Time Warner 134,488(b) 1,546,612 Brunswick 2,710 62,005 Carnival 17,715 469,448 Harley-Davidson 9,146 433,155 Harrah's Entertainment 3,462(b) 163,822 Hasbro 5,227 64,031 Intl Game Technology 2,721(b) 158,498 Mattel 13,178 247,878 Viacom Cl B 53,386(b) 2,077,782 Total 5,223,231 Media (2.3%) American Greetings Cl A 1,959 31,481 Apollo Group Cl A 5,215(b) 204,689 Clear Channel Communications 18,508(b) 482,133 Comcast Cl A 28,565(b) 597,008 Disney (Walt) 61,633 1,092,752 Donnelley (RR) & Sons 3,419 95,014 Dow Jones 2,542 104,730 eBay 8,465(b) 483,267 Gannett 8,060 579,594 Interpublic Group of Companies 11,536 241,218 Knight-Ridder 2,515 152,283 McGraw-Hill Companies 5,861 366,606 Meredith 1,493 54,450 Moody's 4,656 230,938 New York Times Cl A 4,574 206,974 Omnicom Group 5,654 301,415 TMP Worldwide 3,363(b) 51,925 Tribune 9,092 362,771 Univision Communications Cl A 6,910(b) 197,557 Total 5,836,805 Metals (0.6%) Alcoa 25,570 691,668 Allegheny Technologies 2,425 23,207 Avery Dennison 3,318 206,413 Freeport-McMoRan Copper & Gold Cl B 4,354(b) 66,486 Newmont Mining 11,835 288,774 Nucor 2,358 131,647 Phelps Dodge 2,671 91,295 United States Steel 3,054 50,849 Worthington Inds 2,575 45,191 Total 1,595,530 Miscellaneous (0.1%) MeadWestvaco 6,032 160,391 Multi-industry conglomerates (6.0%) 3M 11,764 1,480,265 American Standard 2,192(b) 156,750 Cendant 31,509(b) 435,454 Crane 1,804 41,456 See accompanying notes to investments in securities.
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AXP S&P 500 Index Fund Common stocks (continued) Issuer Shares Value(a) Multi-industry conglomerates (cont.) Danaher 4,561 $ 283,010 Dover 6,127 179,827 Eastman Kodak 8,803 270,956 Emerson Electric 12,723 648,237 General Electric 300,151 9,664,863 Grainger (WW) 2,826 138,587 Honeywell Intl 24,696 799,163 ITT Inds 2,736 174,776 Robert Half Intl 5,319(b) 106,114 Textron 4,221 166,307 Tyco Intl 60,318(c) 772,070 Xerox 21,737(b) 151,072 Total 15,468,907 Paper & packaging (0.4%) Ball 1,710 73,564 Bemis 1,593 76,560 Boise Cascade 1,756 50,906 Intl Paper 14,584 580,736 Pactiv 4,773(b) 86,725 Sealed Air 2,526(b) 36,652 Total 905,143 Real estate investment trust (0.4%) Equity Office Properties Trust 12,594 332,230 Equity Residential 8,289 221,731 Plum Creek Timber 5,578 158,973 Simon Property Group 5,605 201,724 Starwood Hotels & Resorts Worldwide 6,022 154,765 Total 1,069,423 Restaurants & lodging (0.8%) Darden Restaurants 5,224 121,301 Hilton Hotels 11,191 136,754 Marriott Intl Cl A 7,332 245,622 McDonald's 38,423 950,970 Starbucks 11,656(b) 228,807 Wendy's Intl 3,454 127,073 Yum! Brands 8,958(b) 276,802 Total 2,087,329 Retail (7.2%) Albertson's 12,286 346,219 AutoZone 3,186(b) 234,968 Bed Bath & Beyond 8,818(b) 273,358 Best Buy 9,685(b) 318,637 Big Lots 3,492 57,967 Circuit City Stores- Circuit City Group 6,328 107,892 Costco Wholesale 13,714(b) 478,207 CVS 11,843 338,710 Dillard's Cl A 2,536 59,596 Dollar General 10,052 172,492 Family Dollar Stores 5,229 158,386 Federated Dept Stores 6,070(b) 228,293 Gap 26,183 318,123 Home Depot 71,128 2,196,433 Kohl's 10,159(b) 670,494 Kroger 23,987(b) 467,267 Limited Brands 15,676 281,698 Lowe's Companies 23,467 888,226 May Dept Stores 8,647 265,636 Nordstrom 4,061 76,753 Office Depot 9,314(b) 120,896 Penney (JC) 8,075 142,120 RadioShack 5,249 134,374 Safeway 14,600(b) 406,172 Sears, Roebuck & Co 9,530 449,530 Staples 14,119(b) 235,646 Target 27,390 913,457 Tiffany 4,396 108,317 TJX Companies 16,308 289,141 Toys "R" Us 6,352(b) 85,625 Wal-Mart Stores 134,349 6,607,284 Walgreen 30,913 1,092,156 Winn-Dixie Stores 4,245 66,859 Total 18,590,932 Textiles & apparel (0.3%) Jones Apparel Group 3,882(b) 132,104 Liz Claiborne 3,219 92,868 Nike Cl B 8,114 399,940 Reebok Intl 1,796(b) 48,330 VF 3,323 128,201 Total 801,443 Transportation (1.5%) Burlington Northern Santa Fe 11,571 340,419 CSX 6,409 221,559 FedEx 9,013 459,212 Norfolk Southern 11,724 237,411 See accompanying notes to investments in securities.
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AXP S&P 500 Index Fund Common stocks (continued) Issuer Shares Value(a) Transportation (cont.) Ryder System 1,867 $ 48,859 Union Pacific 7,606 446,244 United Parcel Service Cl B 33,735 2,204,246 Total 3,957,950 Utilities -- electric (2.2%) AES 16,128(b) 33,062 Allegheny Energy 3,782 79,611 Ameren 4,356 190,357 American Electric Power 10,241 337,031 Calpine 11,290(b) 56,111 Cinergy 5,046 171,059 CMS Energy 4,067 33,024 Consolidated Edison 6,420 275,097 Constellation Energy Group 4,946 137,845 Dominion Resources 8,359 496,859 DTE Energy 5,031 206,070 Duke Energy 25,066 638,933 Edison Intl 9,834(b) 128,825 Entergy 6,776 274,631 Exelon 9,730 477,257 FPL Group 5,320 301,378 Mirant 12,136(b) 43,690 PG&E 11,756(b) 163,408 Pinnacle West Capital 2,558 86,972 PPL 4,436 146,610 Public Service Enterprise Group 6,231 215,281 Sempra Energy 6,202 131,482 Southern Co 21,277 612,353 TECO Energy 4,639 107,161 TXU 8,046 347,024 Xcel Energy 11,903 82,845 Total 5,773,976 Utilities -- gas (0.3%) Dynegy Cl A 10,906 26,174 El Paso 17,452 252,182 KeySpan 4,250 148,325 Kinder Morgan 3,688 153,458 NICOR 1,335 36,045 NiSource 6,259 123,928 Peoples Energy 1,068 37,497 Williams Companies 15,590 45,991 Total 823,600 Utilities -- telephone (2.6%) ALLTEL 9,395 380,685 AT&T 114,735 1,168,002 BellSouth 56,618 1,520,194 CenturyTel 4,267 113,502 Citizens Communications 8,505(b) 46,607 Nextel Communications Cl A 24,607(b) 140,998 Qwest Communications Intl 50,642(b) 64,822 SBC Communications 100,882 2,790,397 Sprint (FON Group) 26,912 251,627 Sprint (PCS Group) 29,968(b) 122,869 Total 6,599,703 Total common stocks (Cost: $324,013,753) $253,947,289
Short-term securities (1.4%) Issuer Annualized Amount Value(a) yield on date payable at of purchase maturity U.S. government agencies Federal Home Loan Bank Disc Nts 08-16-02 1.71% $400,000 $399,688 08-16-02 1.72 200,000 199,848 09-04-02 1.71 500,000 499,214 09-20-02 1.72 500,000 498,822 10-02-02 1.71 700,000 697,943 Federal Home Loan Mtge Corp Disc Nt 08-13-02 1.71 500,000 499,691 Federal Natl Mtge Assn Disc Nts 08-05-02 1.85 300,000 299,930 10-23-02 1.71 600,000 597,662 Total short-term securities (Cost: $3,692,823) $3,692,798 Total investments in securities (Cost: $327,706,576)(e) $257,640,087 See accompanying notes to investments in securities.
-------------------------------------------------------------------------------- 27 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP S&P 500 Index Fund Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. As of July 31, 2002, the value of foreign securities represented 0.6% of net assets. (d) Partially pledged as initial margin deposit on the following open stock index futures contracts (see Note 5 to the financial statements): Type of security Contracts Purchase contracts S&P 500 Index, Sept. 2002 92 (e) At July 31, 2002, the cost of securities for federal income tax purposes was approximately $327,707,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 5,002,000 Unrealized depreciation (75,069,000) ----------- Net unrealized depreciation $(70,067,000) ------------ -------------------------------------------------------------------------------- 28 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Investments in Securities AXP Mid Cap Index Fund July 31, 2002 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (100.0%) Issuer Shares Value(a) Aerospace & defense (1.0%) L-3 Communications Holdings 3,440(b) $ 158,996 Precision Castparts 1,910 50,042 Sequa Cl A 382(b) 22,374 Titan 2,837(b) 32,200 Total 263,612 Airlines (0.1%) Alaska Air Group 977(b) 22,960 Automotive & related (1.8%) Bandag 761 23,553 BorgWarner 977 52,445 Gentex 2,781(b) 81,177 Lear 2,402(b) 103,526 SPX 1,520(b) 158,841 Superior Inds Intl 958 42,027 United Rentals 2,819(b) 40,876 Total 502,445 Banks and savings & loans (10.4%) Associated Banc-Corp 2,799 99,085 Astoria Financial 3,311 111,415 Bank of Hawaii 2,686 75,289 Banknorth Group 5,426 138,037 City Natl 1,840 95,404 Colonial BancGroup 4,424 63,661 Commerce Bancorp 2,449 113,193 Compass Bancshares 4,698 151,229 First Virginia Banks 1,762 98,954 FirstMerit 3,129 74,846 Golden State Bancorp 5,007 166,232 Greater Bay Bancorp 1,859 45,081 GreenPoint Financial 3,683 177,889 Hibernia Cl A 5,894 122,477 Independence Community Bank 2,127 64,640 M&T Bank 3,415 285,493 Mercantile Bankshares 2,574 100,875 Natl Commerce Financial 7,596 195,597 New York Community Bancorp 3,950 113,760 Provident Financial Group 1,814 47,708 Roslyn Bancorp 3,112 67,225 Silicon Valley Bancshares 1,681(b) 36,377 Sovereign Bancorp 9,588 138,930 TCF Financial 2,787 132,271 Webster Financial 1,800 66,582 Westamerica Bancorporation 1,233 48,161 Total 2,830,411 Beverages & tobacco (1.4%) Constellation Brands 3,277(b) 94,181 PepsiAmericas 5,693 81,979 RJ Reynolds Tobacco Holdings 3,382 184,759 Universal 963 33,686 Total 394,605 Building materials & construction (2.2%) Alexander & Baldwin 1,502 36,679 American Financial Group 2,529 56,017 Carlisle Companies 1,118 48,264 Clayton Homes 5,072 69,486 D.R. Horton 5,387 119,591 Dycom Inds 1,761(b) 16,994 Granite Construction 1,519 27,448 Lennar 2,369 120,228 Potlatch 1,044 33,272 Quanta Services 2,551(b) 4,872 Valspar 1,843 74,900 Total 607,751 Chemicals (2.8%) Airgas 2,568(b) 37,775 Albemarle 1,532 45,286 Cabot 2,292 56,658 Cabot Microelectronics 890(b) 37,683 Crompton 4,179 46,596 Cytec Inds 1,459(b) 40,794 See accompanying notes to investments in securities.
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AXP Mid Cap Index Fund Common stocks (continued) Issuer Shares Value(a) Chemicals (cont.) Ferro 1,456 $ 42,078 FMC 1,286(b) 31,687 Fuller (HB) 1,042 28,197 IMC Global 4,234 45,939 Lubrizol 1,891 57,562 Lyondell Chemical 4,593 60,628 Olin 1,726 32,017 Republic Services 6,119(b) 107,694 RPM/Ohio 4,217 60,387 Schulman (A) 1,076 20,132 Solutia 3,857 24,145 Total 775,258 Communications equipment & services (1.3%) ADTRAN 1,419(b) 26,606 Advanced Fibre Communications 3,037(b) 52,328 CommScope 2,273(b) 17,048 Fairchild Semiconductor Intl Cl A 4,178(b) 74,493 Plantronics 1,707(b) 31,306 Polycom 3,684(b) 42,182 Powerwave Technologies 2,408(b) 14,785 RF Micro Devices 6,161(b) 41,032 Semtech 2,689(b) 52,866 Total 352,646 Computer software & services (0.9%) Advent Software 1,279(b) 24,570 Ascential Software 9,377(b) 22,974 Cadence Design Systems 9,759(b) 121,499 Network Associates 5,406(b) 65,683 Transaction Systems Architects Cl A 1,301(b) 11,722 Total 246,448 Computers & office equipment (7.1%) 3Com 13,125(b) 59,194 Acxiom 3,232(b) 51,260 Affiliated Computer Services Cl A 4,854(b) 228,042 Avocent 1,654(b) 24,860 BISYS Group 4,393(b) 101,478 Ceridian 5,435(b) 94,080 Certegy 2,560(b) 83,763 CheckFree 2,873(b) 28,615 CSG Systems Intl 1,939(b) 22,434 DST Systems 4,407(b) 148,516 Henry (Jack) & Associates 3,330 47,519 InFocus 1,446(b) 16,600 Internet Security Systems 1,778(b) 29,337 Investment Technology Group 1,812(b) 61,372 Keane 2,789(b) 23,009 Legato Systems 4,187(b) 11,305 Macromedia 2,166(b) 17,220 McDATA Cl A 4,172(b) 44,724 Mentor Graphics 2,407(b) 17,379 Natl Instruments 1,894(b) 51,384 Quantum 5,731(b) 11,920 Retek 1,922(b) 12,435 Reynolds & Reynolds Cl A 2,579 64,217 RSA Security 2,084(b) 7,502 SanDisk 2,528(b) 36,403 SEI Investments 4,039 106,266 Storage Technology 3,899(b) 55,366 Sybase 3,651(b) 44,360 Sykes Enterprises 1,488(b) 9,687 Symantec 5,237(b) 175,649 Synopsys 2,872(b) 122,835 Tech Data 2,077(b) 69,683 Wallace Computer Services 1,524 26,899 Wind River Systems 2,905(b) 13,508 Total 1,918,821 Electronics (4.2%) Arrow Electronics 3,692(b) 63,022 Atmel 17,214(b) 54,052 Avnet 4,406 73,580 Cirrus Logic 3,032(b) 18,010 Credence Systems 2,227(b) 30,510 Cree 2,680(b) 40,522 Cypress Semiconductor 4,517(b) 51,855 Harris 2,439 78,316 Integrated Device Technology 3,842(b) 49,178 Intl Rectifier 2,339(b) 53,937 KEMET 3,160(b) 40,859 Lam Research 4,691(b) 57,699 Lattice Semiconductor 4,036(b) 26,238 LTX 1,795(b) 17,627 Micrel 3,421(b) 39,239 Microchip Technology 7,344(b) 161,715 MIPS Technologies Cl B 1,443(b) 3,997 Newport 1,395(b) 22,460 Plexus 1,542(b) 21,434 TriQuint Semiconductor 4,837(b) 32,021 Varian Medical Systems 2,503(b) 104,625 Vishay Intertechnology 5,870(b) 100,084 Total 1,140,980 See accompanying notes to investments in securities.
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AXP Mid Cap Index Fund Common stocks (continued) Issuer Shares Value(a) Energy (2.3%) Arch Coal 1,928 $ 31,851 Forest Oil 1,726(b) 39,439 Grant Prideco 4,094(b) 40,899 Murphy Oil 1,684 140,024 Noble Energy 2,101 65,320 Ocean Energy 6,450 128,355 Pennzoil-Quaker State 2,959 63,974 Valero Energy 3,900 132,834 Total 642,696 Energy equipment & services (4.1%) Cooper Cameron 1,992(b) 85,636 ENSCO Intl 4,984 128,836 FMC Technologies 2,407(b) 44,530 Hanover Compressor 2,415(b) 21,276 Helmerich & Payne 1,837 60,933 Jacobs Engineering Group 2,000(b) 69,380 Natl-Oilwell 2,981(b) 51,512 Patterson-UTI Energy 2,904(b) 69,435 Pioneer Natural Resources 4,267(b) 103,304 Pride Intl 4,900(b) 65,905 Smith Intl 3,731(b) 117,937 Tidewater 2,229 60,005 Varco Intl 3,552(b) 54,026 Weatherford Intl 4,405(b) 178,666 Total 1,111,381 Financial services (3.6%) Allmerica Financial 1,951 53,262 AmeriCredit 3,149(b) 61,563 E*TRADE Group 13,080(b) 51,666 Eaton Vance 2,565 68,639 Edwards (AG) 2,968 102,099 IndyMac Bancorp 2,231(b) 49,194 Investors Financial Services 2,366 72,802 LaBranche 2,171(b) 43,463 Legg Mason 2,366 100,886 Metris Companies 2,291 8,133 Neuberger Berman 2,593 79,035 Radian Group 3,485 159,614 Waddell & Reed Financial Cl A 2,963 53,156 Wilmington Trust 2,416 72,939 Total 976,451 Food (3.4%) Dean Foods 3,314(b) 110,489 Dole Food 2,062 61,736 Dreyer's Grand Ice Cream 1,278 85,575 Hormel Foods 5,112 120,797 Interstate Bakeries 1,604 41,768 McCormick 5,125 116,594 Sensient Technologies 1,757 37,617 Smithfield Foods 4,075(b) 74,939 Smucker (JM) 1,807 60,535 Tootsie Roll Inds 1,902 70,374 Tyson Foods Cl A 13,013 164,614 Total 945,038 Furniture & appliances (1.0%) Furniture Brands Intl 2,072(b) 52,629 HON Inds 2,169 58,541 Miller (Herman) 2,799 47,443 Mohawk Inds 2,483(b) 117,943 Total 276,556 Health care (6.4%) Apogent Technologies 3,931(b) 76,261 Barr Laboratories 1,602(b) 97,722 Beckman Coulter 2,274 89,141 DENTSPLY Intl 2,878 114,084 Gilead Sciences 7,174(b) 218,592 ICN Pharmaceuticals 3,063 32,131 IDEC Pharmaceuticals 5,604(b) 249,881 Incyte Genomics 2,474(b) 15,314 IVAX 7,171(b) 96,809 Millennium Pharmaceuticals 10,378(b) 128,895 Mylan Laboratories 4,634 150,327 Protein Design Labs 3,267(b) 44,399 Quest Diagnostics 3,572(b) 215,713 Sepracor 3,089(b) 20,851 SICOR 4,257(b) 67,899 STERIS 2,556(b) 53,395 Vertex Pharmaceuticals 2,788(b) 55,035 VISX 1,986(b) 16,186 Total 1,742,635 Health care services (5.4%) AdvancePCS 3,402(b) 76,273 Apria Healthcare Group 2,001(b) 46,863 Covance 2,290(b) 38,793 Cytyc 4,510(b) 38,831 See accompanying notes to investments in securities.
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AXP Mid Cap Index Fund Common stocks (continued) Issuer Shares Value(a) Health care services (cont.) Express Scripts Cl A 2,938(b) $ 152,775 First Health Group 3,727(b) 93,697 Health Net 4,622(b) 103,440 Hillenbrand Inds 2,312 124,987 LifePoint Hospitals 1,450(b) 49,373 Lincare Holdings 3,960(b) 124,265 Omnicare 3,465 74,498 Oxford Health Plans 3,239(b) 139,342 PacifiCare Health Systems 1,282(b) 31,537 Patterson Dental 2,495(b) 115,494 Schein (Henry) 1,591(b) 68,349 Triad Hospitals 2,681(b) 107,186 Universal Health Services Cl B 2,207(b) 104,347 Total 1,490,050 Household products (1.0%) Church & Dwight 1,452 40,700 Dial 3,492 69,910 Energizer Holdings 3,365(b) 90,349 Viad 3,272 74,700 Total 275,659 Indexes (2.8%) S&P Mid-Cap 400 Depositary Receipts 9,659 779,964 Industrial equipment & services (2.6%) AGCO 2,740(b) 49,128 Albany Intl Cl A 1,178 27,330 AMETEK 1,216 39,970 Blyth 1,704 50,847 Donaldson 1,627 54,537 Fastenal 2,794 106,367 FEI 1,190(b) 21,753 Flowserve 2,030(b) 35,018 Harsco 1,477 43,365 Kaydon 1,105 23,658 Kennametal 1,258 40,810 Minerals Technologies 752 28,087 Modine Mfg 1,227 28,835 Nordson 1,234 29,739 Tecumseh Products Cl A 680 35,516 Teleflex 1,441 71,099 Trinity Inds 1,689 30,622 Total 716,681 Insurance (3.9%) AmerUs Group 1,489 47,469 Everest Re Group 1,888(c) 103,368 Fidelity Natl Financial 3,520 104,157 Gallagher (Arthur J) 3,169 93,200 HCC Insurance Holdings 2,290 51,640 Horace Mann Educators 1,503 25,626 Leucadia Natl 2,037 68,708 MONY Group 1,788 54,409 Ohio Casualty 2,222(b) 41,818 Old Republic Intl 4,428 139,393 PMI Group 3,318 117,855 Protective Life 2,528 80,896 StanCorp Financial Group 1,092 60,912 Unitrin 2,491 85,865 Total 1,075,316 Leisure time & entertainment (1.3%) Activision 2,452(b) 70,421 Callaway Golf 2,887 45,413 GTECH Holdings 2,115(b) 42,194 Intl Speedway Cl A 1,957 72,781 Mandalay Resort Group 2,515(b) 71,325 Six Flags 3,403(b) 51,113 Total 353,247 Media (4.5%) Banta 921 30,319 Belo Cl A 4,117 89,956 Catalina Marketing 2,040(b) 58,630 Dun & Bradstreet 2,745(b) 88,801 Emmis Communications Cl A 1,947(b) 30,879 Entercom Communications Cl A 1,822(b) 78,893 Gartner Cl B 3,108(b) 25,361 Harte-Hanks 3,471 67,233 Hispanic Broadcasting 4,002(b) 95,128 Lee Enterprises 1,627 54,098 Macrovision 1,882(b) 20,627 Media General Cl A 852 43,265 Price Communications 2,010(b) 28,180 Reader's Digest Assn Cl A 3,669 61,272 Scholastic 1,432(b) 55,834 Valassis Communications 1,977(b) 72,556 Washington Post Cl B 350 218,749 Westwood One 3,944(b) 125,222 Total 1,245,003 See accompanying notes to investments in securities.
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AXP Mid Cap Index Fund Common stocks (continued) Issuer Shares Value(a) Metals (0.7%) AK Steel Holdings 3,973(b) $ 37,267 Carpenter Technology 819 18,903 GrafTech Intl 2,057(b) 16,353 Martin Marietta Materials 1,795 68,802 Pittston Brink's Group 1,997 45,392 Total 186,717 Miscellaneous (0.8%) Edwards Lifesciences 2,193(b) 53,378 Federal Signal 1,666 34,853 Intersil 5,004(b) 109,037 Rollins 1,110 22,644 Total 219,912 Multi-industry conglomerates (3.1%) ChoicePoint 3,139(b) 131,492 DeVry 2,573(b) 50,817 Diebold 2,650 90,285 Education Management 1,288(b) 51,404 Hubbell Cl B 2,174 66,503 Imation 1,290(b) 39,268 Kelly Services Cl A 1,324 33,021 Korn/Ferry Intl 1,391(b) 9,807 Lancaster Colony 1,348 50,375 Manpower 2,782 104,769 MPS Group 3,647(b) 19,329 NCO Group 952(b) 14,126 Pentair 1,813 73,734 Ruddick 1,709 27,771 Stewart & Stevenson Services 1,047 14,794 Sylvan Learning Systems 1,467(b) 21,492 YORK Intl 1,450 46,473 Total 845,460 Paper & packaging (1.3%) Bowater 2,031 92,593 Glatfelter 1,594 23,671 Longview Fibre 1,880 15,322 Packaging Corp of America 3,887(b) 73,853 Rayonier 1,020 50,592 Sonoco Products 3,549 86,241 Wausau-Mosinee Paper 1,897 19,596 Total 361,868 Real estate investment trust (0.5%) Hospitality Properties Trust 2,302 77,393 New Plan Excel Realty Trust 3,489 68,280 Total 145,673 Restaurants & lodging (2.2%) Bob Evans Farms 1,287 35,199 Brinker Intl 3,609(b) 117,654 CBRL Group 1,932 57,805 Cheesecake Factory (The) 1,856(b) 67,261 Extended Stay America 3,411(b) 47,754 Krispy Kreme Doughnuts 2,007(b) 70,947 Outback Steakhouse 2,843(b) 90,805 Papa John's Intl 759(b) 23,962 Park Place Entertainment 11,122(b) 102,101 Total 613,488 Retail (5.5%) 99 Cents Only Stores 2,569(b) 62,632 Abercrombie & Fitch 3,647(b) 82,422 American Eagle Outfitters 2,653(b) 43,934 Barnes & Noble 2,477(b) 53,355 BJ's Wholesale Club 2,623(b) 92,198 Borders Group 3,005(b) 53,189 CDW Computer Centers 3,166(b) 151,334 Claire's Stores 1,791 32,238 Copart 3,350(b) 44,555 Dollar Tree Stores 4,183(b) 130,495 Longs Drug Stores 1,407 34,387 Michaels Stores 2,432(b) 90,057 Neiman Marcus Group Cl A 1,766(b) 49,978 Payless ShoeSource 828(b) 37,161 Perrigo 2,668(b) 30,842 PETsMART 4,920(b) 71,045 Pier 1 Imports 3,450 59,685 Ross Stores 2,912 109,666 Saks 5,245(b) 55,807 Sotheby's Holdings Cl A 2,263(b) 25,685 Whole Foods Market 2,082(b) 91,337 Williams-Sonoma 4,236(b) 96,369 Total 1,498,371 Textiles & apparel (0.5%) Coach 3,266(b) 74,464 Timberland Cl A 1,392(b) 52,785 Unifi 1,981(b) 15,749 Total 142,998 See accompanying notes to investments in securities.
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AXP Mid Cap Index Fund Common stocks (continued) Issuer Shares Value(a) Transportation (1.9%) Airborne 1,778 $ 24,039 ArvinMeritor 2,499 52,879 Atlas Air Worldwide Holdings 1,408(b) 5,280 C.H. Robinson Worldwide 3,113 93,390 CNF 1,768 56,275 EGL 1,763(b) 20,662 Expeditors Intl of Washington 3,816 112,573 GATX 1,798 45,507 Hunt (JB) Transport Services 1,338(b) 35,216 Overseas Shipbuilding Group 1,266 25,219 Swift Transportation 3,181(b) 57,735 Total 528,775 Utilities -- electric (5.9%) Allete 3,123 73,422 Alliant Energy 3,324 63,588 American Water Works 3,683 160,763 Aquila 6,615 47,496 Black Hills 986 25,113 Cleco 1,657 24,789 Conectiv 3,268 82,452 DPL 4,657 86,620 DQE 2,630 35,768 Energy East 5,314 110,691 Great Plains Energy 2,279 45,922 Hawaiian Electric Inds 1,331 56,993 Idacorp 1,384 35,320 MDU Resources Group 2,608 58,836 Northeast Utilities 5,068 84,382 NSTAR 1,952 83,546 OGE Energy 2,871 57,391 PNM Resources 1,440 28,728 Potomac Electric Power 3,944 78,604 Puget Energy 3,215 67,451 SCANA 3,856 114,330 Sierra Pacific Resources 3,759 23,531 Westar Energy 2,640 30,941 Wisconsin Energy 4,244 107,501 WPS Resources 1,161 42,260 Total 1,626,438 Utilities -- gas (1.6%) AGL Resources 2,058 46,758 Equitable Resources 2,332 79,730 Natl Fuel Gas 2,943 56,888 ONEOK 2,221 41,089 Questar 3,010 68,026 Vectren 2,493 59,084 Western Gas Resources 1,214 37,962 WGL Holdings 1,788 43,645 Total 433,182 Utilities -- telephone (0.5%) BroadWing 8,056(b) 16,354 Telephone & Data Systems 2,159 122,955 Total 139,309 Total common stocks (Cost: $31,103,612) $ 27,428,805 Total investments in securities (Cost: $31,103,612)(d) $ 27,428,805
Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. As of July 31, 2002, the value of foreign securities represented 0.4% of net assets. (d) At July 31, 2002, the cost of securities for federal income tax purposes was approximately $31,104,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 2,602,000 Unrealized depreciation (6,277,000) ---------- Net unrealized depreciation $(3,675,000) ----------- -------------------------------------------------------------------------------- 34 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Investments in Securities AXP Total Stock Market Index Fund July 31, 2002 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (100.0%) Issuer Shares Value(a) Aerospace & defense (1.5%) Alliant Techsystems 108(b) $ 6,631 Armor Holdings 252(b) 3,609 Boeing 2,179 90,472 General Dynamics 508 41,107 General Motors Cl H 2,208(b) 21,859 Goodrich 267 5,957 L-3 Communications Holdings 244(b) 11,278 Lockheed Martin 1,154 73,983 Northrop Grumman 290 32,103 Precision Castparts 132 3,458 Raytheon 1,017 33,134 Rockwell Automation 390 7,215 Rockwell Collins 390 10,023 Titan 18(b) 204 United Technologies 1,201 83,470 Total 424,503 Airlines (0.2%) Alaska Air Group 256(b) 6,016 America West Holdings Cl B 110(b) 244 AMR 327(b) 3,656 Atlantic Coast Airlines Holdings 134(b) 2,097 Continental Airlines Cl B 113(b) 1,211 Delta Air Lines 316 4,923 JetBlue Airways 135(b) 6,286 Northwest Airlines Cl A 336(b) 3,118 SkyWest 186 3,569 Southwest Airlines 1,962 27,096 UAL 250 1,488 US Airways Group 386(b) 1,034 Total 60,738 Automotive & related (1.2%) American Axle & Mfg Holdings 356(b) 9,078 Asbury Automotive Group 335(b) 3,802 Bandag 237 7,335 BorgWarner 130 6,978 Central Parking 73 1,537 Collins & Aikman 286(b) 1,805 Cooper Tire & Rubber 151 3,022 CSK Auto 102(b) 1,255 Cummins 95 3,069 Dana 381 6,126 Delphi 1,411 14,054 Dollar Thrifty Automotive Group 100(b) 1,940 Eaton 155 10,822 Federal-Mogul 230(b) 161 Ford Motor 4,770 64,252 GenCorp 45 496 General Motors 1,445 67,264 Gentex 183(b) 5,342 Genuine Parts 391 12,008 Goodyear Tire & Rubber 359 6,261 Hayes Lemmerz Intl 86(b) 18 Johnson Controls 224 18,148 Lear 205(b) 8,836 Navistar Intl 179 4,616 O'Reilly Automotive 235(b) 6,622 Oshkosh Truck 96 5,275 PACCAR 267 10,239 Smith (AO) 70 2,013 Snap-On 196 5,325 Sonic Automotive 179(b) 3,576 SPX 97(b) 10,137 Superior Inds Intl 162 7,107 Tower Automotive 114(b) 854 TRW 333 17,965 United Rentals 224(b) 3,248 Visteon 357 3,977 Total 334,563 Banks and savings & loans (8.5%) Allied Capital 404 8,403 AMCORE Financial 92 2,133 AmSouth Bancorporation 960 21,427 Anchor BanCorp Wisconsin 122 2,645 Associated Banc-Corp 243 8,602 Astoria Financial 228 7,672 BancorpSouth 293 5,831 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Banks and savings & loans (cont.) Bank of America 4,024 $ 267,595 Bank of Hawaii 201 5,634 Bank of New York 1,888 60,454 Bank One 3,037 118,170 Banknorth Group 359 9,133 BB&T 1,180 43,684 Capitol Federal Financial 305 8,055 Charter One Financial 585 19,843 Chittenden 321 9,341 Citizens Banking 147 4,125 City Natl 131 6,792 Colonial BancGroup 727 10,462 Comerica 433 25,183 Commerce Bancorp 148 6,841 Commerce Bancshares 106 4,330 Commercial Federal 403 10,579 Community First Bankshares 352 8,934 Compass Bancshares 297 9,560 CompuCredit 107(b) 693 Corus Bankshares 74 3,431 Cullen/Frost Bankers 200 7,320 CVB Financial 137 2,637 Downey Financial 94 4,002 E-Loan 102(b) 114 F.N.B 327 9,676 Fifth Third Bancorp 1,536 101,484 First BanCorp 141(c) 5,189 First Citizens BancShares Cl A 93 9,629 First Commonwealth Financial 146 1,848 First Financial Bancorp 470 8,860 First Midwest Bancorp 361 10,285 First Source 75 1,547 First Tennessee Natl 291 10,892 First Virginia Banks 78 4,380 FirstMerit 211 5,047 FleetBoston Financial 2,679 62,153 Frontier Financial 85 2,149 Fulton Financial 331 6,299 Golden State Bancorp 309 10,259 Golden West Financial 389 25,577 Greater Bay Bancorp 172 4,171 GreenPoint Financial 252 12,172 Hancock Holding 51 3,443 Hibernia Cl A 386 8,021 Hudson City Bancorp 486 8,952 Hudson United Bancorp 369 10,406 Huntington Bancshares 582 11,489 Independence Community Bank 169 5,136 Integra Bank 78 1,658 Intl Bancshares 262 10,352 Irwin Financial 103 1,705 J.P. Morgan Chase 5,134 128,144 KeyCorp 1,045 27,442 M&T Bank 238 19,897 MAF Bancorp 95 3,306 Marshall & Ilsley 564 16,971 Mellon Financial 1,199 31,869 Mercantile Bankshares 183 7,172 Natl City 1,527 47,184 Natl Commerce Financial 476 12,257 Natl Penn Bancshares 86 2,210 Net.B@nk 94(b) 854 New York Community Bancorp 330 9,504 NextCard 222(b) 2 North Fork Bancorporation 416 16,894 Northern Trust 578 23,022 Old Natl Bancorp 260 6,757 Pacific Capital Bancorp 80 1,998 Park Natl 57 5,515 People's Bank 393 9,982 PNC Financial Services Group 716 30,179 Popular 312(c) 10,914 Provident Bankshares 105 2,464 Provident Financial Group 167 4,392 Regions Financial 595 20,962 Republic Bancorp 215 2,896 Riggs Natl 126 1,639 Roslyn Bancorp 358 7,734 S&T Bancorp 87 2,211 Santander BanCorp 142(c) 2,512 Silicon Valley Bancshares 231(b) 4,999 Sky Financial Group 394 8,077 South Financial Group 381 7,819 SouthTrust 845 21,328 Southwest Bancorp of Texas 122(b) 4,531 Sovereign Bancorp 833 12,070 Staten Island Bancorp 210 4,141 SunTrust Banks 740 48,692 Susquehanna Bancshares 402 8,487 Synovus Financial 734 17,616 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Banks and savings & loans (cont.) TCF Financial 142 $ 6,739 Texas Regional Bancshares Cl A 164 5,412 Trust Co of New Jersey 90 2,252 TrustCo Bank NY 650 8,099 Trustmark 368 9,443 U.S. Bancorp 5,000 106,950 UCBH Holdings 132 5,429 UMB Financial 192 8,227 Union Planters 457 14,002 UnionBanCal 354 15,353 United Bankshares 297 8,764 United Community Financial 134 1,132 Valley Natl Bancorp 402 11,075 W Holding 213(c) 3,919 Wachovia 3,541 126,768 Walter Inds 153 1,913 Washington Federal 400 10,000 Washington Mutual 2,506 93,749 Webster Financial 187 6,917 Wells Fargo 4,465 227,089 Westamerica Bancorporation 234 9,140 Westcorp 128 2,536 WFS Financial 98(b) 1,716 Whitney Holding 277 8,784 Zions Bancorp 241 12,173 Total 2,358,628 Beverages & tobacco (3.7%) Anheuser-Busch 2,301 118,985 Brown-Forman Cl B 155 10,506 Coca-Cola 6,545 326,858 Coca-Cola Bottling 37 1,765 Coca-Cola Enterprises 1,076 20,035 Constellation Brands 360(b) 10,346 Coors (Adolph) Cl B 106 6,403 Fortune Brands 393 20,554 Pepsi Bottling Group 749 18,515 PepsiAmericas 336 4,838 PepsiCo 4,622 198,469 Philip Morris 5,707 262,807 RJ Reynolds Tobacco Holdings 224 12,237 Universal 142 4,967 UST 379 11,154 Vector Group 136 2,028 Total 1,030,467 Building materials & construction (0.9%) American Financial Group 300 6,645 Armstrong Holdings 88(b) 143 Carlisle Companies 142 6,130 Centex 115 5,514 Centex Construction Products 53 1,967 CIRCOR Intl 50 843 Clayton Homes 435 5,960 D.R. Horton 327 7,259 Dycom Inds 84(b) 811 Elcor 84 1,743 Fleetwood Enterprises 107 444 Florida Rock Inds 90 3,060 Fluor 192 6,163 Foster Wheeler 172(b) 286 Georgia-Pacific 598 13,096 Granite Construction 408 7,373 Hughes Supply 91 3,301 Huttig Building Products 23(b) 101 Insituform Technologies Cl A 89(b) 1,496 KB HOME 133 6,146 Lafarge North America 198 6,566 Lennar 138 7,004 Lennox Intl 140 2,324 Louisiana-Pacific 315 2,495 M.D.C. Holdings 152 6,323 Masco 1,265 30,613 Massey Energy 376 2,760 NVR 20(b) 5,770 Owens-Corning 102(b) 108 Potlatch 247 7,872 Pulte Homes 159 7,619 Quanta Services 396(b) 756 Ryland Group 158 6,462 Sherwin-Williams 383 11,004 Simpson Mfg 43(b) 2,552 Standard Pacific 192 5,040 Temple-Inland 139 7,464 Texas Inds 54 1,490 Toll Brothers 226(b) 5,164 Tredegar 92 1,610 USG 104(b) 608 Valspar 139 5,649 Vulcan Materials 221 8,937 Watts Inds Cl A 100 1,770 WCI Communties 226(b) 4,204 Weyerhaeuser 580 34,075 Total 254,720 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Chemicals (1.8%) Air Products & Chemicals 557 $ 24,647 Airgas 184(b) 2,707 Albemarle 187 5,528 Allied Waste Inds 399(b) 2,633 Cabot 207 5,117 Cabot Microelectronics 192(b) 8,129 Cambrex 80 3,064 Crompton 368 4,103 Cytec Inds 118(b) 3,299 Dow Chemical 2,312 66,747 du Pont (EI) de Nemours 2,628 110,139 Eastman Chemical 198 8,775 Ecolab 277 12,728 Eden Bioscience 155(b) 239 Engelhard 316 7,900 Ferro 100 2,890 FMC 243(b) 5,988 Fuller (HB) 68 1,840 Georgia Gulf 112 2,598 Grace (WR) 124(b) 304 Great Lakes Chemical 282 7,087 Hercules 686(b) 7,272 IMC Global 314 3,407 Intl Specialty Products 224(b) 2,229 Ionics 63(b) 1,402 Lubrizol 137 4,170 Lyondell Chemical 279 3,683 Millennium Chemicals 208 2,548 Millipore 223 7,381 NL Inds 200 3,020 Olin 157 2,912 OM Group 138 6,320 Pall 193 3,393 Polymer Group 116 14 PolyOne 607 6,028 PPG Inds 432 24,797 Praxair 393 20,554 Republic Services 445(b) 7,832 Rohm & Haas 555 20,813 RPM/Ohio 627 8,979 Sigma-Aldrich 157 7,523 Solutia 443 2,773 Spartech 71 1,622 Stericycle 196(b) 6,470 Tetra Tech 166(b) 1,446 Valhi 311 5,066 Waste Management 1,549 36,665 Total 484,781 Commercial finance (--%) FINOVA Group 293(b) 23 Communications equipment & services (2.0%) ADC Telecommunications 1,626(b) 2,927 ADTRAN 310(b) 5,813 Advanced Fibre Communications 375(b) 6,461 Aether Systems 61(b) 182 Airnet Communications 49(b) 39 American Tower Cl A 1,612(b) 3,611 Andrew Corp 476(b) 5,355 Arris Group 199(b) 814 Aspect Communications 107(b) 162 AT&T Wireless Services 7,119(b) 33,388 Avaya 1,667(b) 2,484 Broadcom Cl A 596(b) 11,181 C-COR.net 122(b) 561 Carrier Access 95(b) 68 Centennial Communications 447(b) 1,118 CIENA 1,427(b) 5,750 Com21 67(b) 14 Commonwealth Telephone Enterprises 131(b) 5,068 CommScope 243(b) 1,823 Copper Mountain Networks 7(b) 28 Corvis 1,323(b) 741 Covad Communications Group 226(b) 264 Digitas 110(b) 403 Ditech Communications 157(b) 327 DMC Stratex Networks 438(b) 1,029 EchoStar Communications Cl A 636(b) 10,373 Fairchild Semiconductor Intl Cl A 419(b) 7,471 Finisar 572(b) 955 Focal Communications 3(b) 4 Glenayre Technologies 212(b) 244 GoAmerica 371(b) 163 Harmonic 217(b) 380 iBasis 68(b) 25 IDT 88(b) 1,593 InterVoice-Brite 131(b) 233 JDS Uniphase 3,180(b) 8,045 Leap Wireless Intl 96(b) 87 Loral Space & Communications 1,217(b) 840 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Communications equipment & services (cont.) Lucent Technologies 8,600(b) $ 15,050 MasTec 277(b) 1,255 Metricom 70(b,d) -- Microtune 271(b) 1,046 Motorola 5,791 67,177 NEON Communications 61(b) 1 Net2Phone 37(b) 140 Netro 102(b) 316 New Focus 561(b) 1,627 Next Level Communications 121(b) 104 Nextel Partners Cl A 870(b) 3,402 NMS Communications 88(b) 188 NTL 570(b) 14 Nucentrix Broadband Networks 119(b) 134 Occam Networks 243(b) 24 Optical Cable 17(b) 42 P-Com 42(b) 15 Pac-West Telecomm 132(b) 77 Plantronics 407(b) 7,464 Polycom 316(b) 3,618 Powerwave Technologies 443(b) 2,720 Proxim Cl A 170(b) 457 QUALCOMM 1,926(b) 52,926 REMEC 195(b) 885 RF Micro Devices 363(b) 2,418 SBA Communications 73(b) 128 Scientific-Atlanta 335 4,238 Semtech 184(b) 3,617 Silicon Laboratories 246(b) 6,767 Sirenza Microdevices 101(b) 150 Sonus Networks 1,219(b) 1,426 Sorrento Networks 32(b) 22 Sunrise Telecom 137(b) 263 Sycamore Networks 1,881(b) 5,267 Tekelec 442(b) 2,979 Telaxis Communications 52(b) 24 Tellabs 864(b) 4,951 Tellium 351(b) 190 Teradyne 385(b) 5,775 Terayon Communication Systems 98(b) 128 Time Warner Telecom Cl A 87(b) 103 Tollgrade Communications 45(b) 559 Turnstone Systems 10(b) 35 Tut Systems 65(b) 46 UTStarcom 30(b) 524 Verizon Communications 7,150 235,951 WebMD 899(b) 4,495 Williams Communications Group 2,599(b) 60 WJ Communications 202(b) 172 Total 558,994 Computer software & services (4.0%) Adaptec 658(b) 3,882 Adobe Systems 597 14,304 Advent Software 74(b) 1,422 Akamai Technologies 180(b) 191 Ariba 1,620(b) 3,872 Ascential Software 861(b) 2,109 Autodesk 400 5,156 Automatic Data Processing 1,580 58,918 BMC Software 533(b) 7,169 Brocade Communications Systems 565(b) 10,594 Cadence Design Systems 519(b) 6,462 Electronic Arts 345(b) 20,762 i2 Technologies 1,014(b) 862 Internet Capital Group 46(b) 11 Intuit 504(b) 22,166 Lexmark Intl Cl A 338(b) 16,521 Microsoft 14,264(b) 683,959 NetIQ 321(b) 6,359 Network Associates 364(b) 4,423 ONYX Software 56(b) 152 Oracle 14,255(b) 142,678 Parametric Technology 1,266(b) 3,950 PeopleSoft 776(b) 13,952 Portal Software 913(b) 365 RealNetworks 702(b) 2,878 S1 76(b) 303 SunGard Data Systems 689(b) 16,157 Transaction Systems Architects Cl A 77(b) 694 VeriSign 691(b) 4,422 VERITAS Software 1,010(b) 16,998 Vignette 1,142(b) 1,622 WebMethods 311(b) 2,734 Yahoo! 1,408(b) 18,543 Total 1,094,590 Computers & office equipment (6.1%) 3Com 1,276(b) 5,755 Accrue Software 64(b) 11 Actuate 236(b) 477 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Computers & office equipment (cont.) Acxiom 397(b) $ 6,296 Advanced Digital Information 139(b) 723 Affiliated Computer Services Cl A 298(b) 14,000 Agile Software 111(b) 662 American Management Systems 91(b) 1,233 Answerthink 200(b) 352 Apple Computer 865(b) 13,200 Art Technology Group 318(b) 388 Artesyn Technologies 211(b) 749 ASK Jeeves 128(b) 134 Aspen Technology 142(b) 604 Avici Systems 270(b) 235 Avocent 132(b) 1,984 Aware 83(b) 213 BARRA 118(b) 3,974 BEA Systems 867(b) 4,812 BindView Development 150(b) 150 BISYS Group 290(b) 6,699 Black Box 72(b) 2,434 Brio Software 49(b) 52 BroadVision 63(b) 155 BSQUARE 100(b) 175 Caldera Intl 30(b) 31 Calico Commerce 100(b) 28 Centillium Communications 49(b) 206 Ceridian 381(b) 6,595 Certegy 160(b) 5,235 CheckFree 488(b) 4,860 Ciber 138(b) 794 Cisco Systems 19,321(b) 254,843 Citrix Systems 391(b) 2,154 Clarent 194(b) 12 Clarus 37(b) 173 CMGI 1,954(b) 801 CNET Networks 531(b) 611 Cogent Communications Group 4(b) 5 Cognex 131(b) 2,013 Comdisco 743(b) 48 Commerce One 1,387(b) 610 Computer Associates Intl 1,451 13,552 Computer Sciences 420(b) 15,540 Compuware 843(b) 3,128 Comverse Technology 357(b) 2,842 Concord Communications 50(b) 337 Concord EFS 1,243(b) 24,239 Concurrent Computer 147(b) 416 Convergys 424(b) 6,411 Covansys 139(b) 542 CSG Systems Intl 331(b) 3,830 CyberCare 133(b) 16 CyberSource 38(b) 73 Cysive 76(b) 169 Dell Computer 6,784(b) 169,124 Deluxe 180 7,000 Dendrite Intl 212(b) 1,141 DiamondCluster Intl Cl A 63(b) 211 Digital Insight 72(b) 988 Digital Lightwave 80(b) 119 Digital River 88(b) 686 divine Cl A 13(b) 38 Documentum 134(b) 2,170 drkoop.com 140(b,d) -- DST Systems 264(b) 8,897 E.piphany 462(b) 1,830 EarthLink 359(b) 1,644 Echelon 53(b) 710 Edwards (JD) & Co 839(b) 9,330 eFunds 201(b) 2,018 eGain Communications 92(b) 17 Electronic Data Systems 1,215 44,676 eLoyalty 12(b) 58 EMC 5,581(b) 41,858 Emulex 164(b) 3,798 Engage 641(b) 32 Enterasys Networks 433(b) 533 Entrada Networks 8(b) 1 Entrust 169(b) 463 Equifax 320 6,784 Exchange Applications 3(b) 1 Extended Systems 34(b) 69 Extreme Networks 724(b) 7,530 F5 Networks 88(b) 1,102 FactSet Research Systems 247 6,439 Fair, Isaac & Co 144 5,134 FileNet 117(b) 1,627 First Data 2,010 70,250 Fiserv 471(b) 16,207 Gadzoox Networks 138(b) 18 Gateway 719(b) 2,445 Gemstar-TV Guide Intl 942(b) 3,551 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Computers & office equipment (cont.) Global Payments 238 $ 6,188 Globix 104(b) 4 GSI Commerce 350(b) 2,076 Handspring 962(b) 1,077 Henry (Jack) & Associates 204 2,911 Hewlett-Packard 7,918 112,040 High Speed Access 86(b) 100 HNC Software 156(b) 2,822 HomeStore 1,054(b) 917 Hutchinson Technology 80(b) 1,370 Hyperion Solutions 87(b) 1,790 iBEAM Broadcasting 31(b,d) -- IDX Systems 120(b) 1,382 iGate 162(b) 624 Immersion 85(b) 111 InFocus 251(b) 2,881 Informatica 218(b) 1,517 InfoSpace 2,164(b) 974 Inktomi 538(b) 253 Insight Enterprises 340(b) 3,876 Insweb 17(b) 43 INT Media Group 79(b) 151 Interland 505(b) 1,535 Interliant 133(b) 2 Internet Security Systems 196(b) 3,234 Interwoven 665(b) 1,609 Intl Business Machines 4,538 319,474 Iomega 203(b) 2,361 Iron Mountain 337(b) 10,026 ITXC 100(b) 430 Ixia 195(b) 1,061 JNI 168(b) 472 Juniper Networks 664(b) 5,312 Jupiter Media Metrix 40(b) 8 Kana Software 60(b) 103 Keane 439(b) 3,622 Keynote Systems 55(b) 384 KPMG Consulting 335(b) 3,531 Kronos 70(b) 2,237 Legato Systems 448(b) 1,210 Lexar Media 467(b) 1,975 Liberate Technologies 560(b) 1,344 Liquid Audio 62(b) 154 LookSmart 427(b) 551 Loudeye 80(b) 23 Macromedia 278(b) 2,210 Manhattan Associates 94(b) 2,091 Manugistics Group 319(b) 1,282 MatrixOne 116(b) 777 MAXIMUS 76(b) 1,803 Maxtor 860(b) 3,225 McDATA Cl A 275(b) 2,948 MedQuist 216(b) 5,808 Mentor Graphics 226(b) 1,632 Mercator Software 74(b) 104 Mercury Interactive 168(b) 4,304 MetaSolv 69(b) 173 Micromuse 501(b) 1,548 MICROS Systems 97(b) 2,454 MicroStrategy Cl A 5(b) 35 Midway Games 120(b) 552 MRO Software 68(b) 561 MTI Technology 136(b) 72 Natl Instruments 118(b) 3,201 Natl Processing 262(b) 5,332 Navigant Consulting 66(b) 380 NCR 221(b) 5,815 NDCHealth 253 5,462 Netcentives 83(b,d) -- Netegrity 99(b) 225 Netopia 48(b) 72 NetRatings 157(b) 1,099 NetScout Systems 88(b) 339 Network Appliance 817(b) 6,912 NexPrise 3(b) 13 NIC 153(b) 203 Novell 1,965(b) 4,382 Nuace Communications 82(b) 246 NVIDIA 357(b) 3,952 Openwave Systems 1,285(b) 1,285 Palm 1,688(b) 1,840 Paradyne Networks 69(b) 187 Pegasus Solutions 75(b) 1,196 Peregrine Systems 1,314(b) 315 Perot Systems Cl A 413(b) 4,415 Pervasive Software 55(b) 195 Pinnacle Systems 112(b) 1,039 Pitney Bowes 625 24,375 PracticeWorks 25(b) 352 Predictive Systems 76(b) 14 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Computers & office equipment (cont.) PRG-Schultz Intl 226(b) $ 2,434 Primus Knowledge Solutions 44(b) 19 Progress Software 122(b) 1,699 Pumatech 92(b) 46 QLogic 189(b) 7,702 QRS 31(b) 242 Quantum 1,279(b) 2,660 Quest Software 266(b) 2,575 Quovadx 458(b) 1,369 Rare Medium Group 8(b) 10 Rational Software 410(b) 2,755 Razorfish Cl A 14(b) 46 Red Hat 958(b) 4,416 Redback Networks 308(b) 394 Renaissance Learning 121(b) 2,422 Retek 262(b) 1,695 Reynolds & Reynolds Cl A 217 5,403 Riverstone Networks 553(b) 813 Roxio 108(b) 519 RSA Security 305(b) 1,098 SABRE Holdings Cl A 376(b) 9,972 Safeguard Scientifics 555(b) 699 Sanchez Computer Associates 70(b) 214 SanDisk 363(b) 5,227 Sanmina-SCI 1,285(b) 5,230 Sapient 588(b) 412 SAVVIS Communications 229(b) 119 SCM Microsystems 47(b) 493 SeaChange Intl 78(b) 464 SeeBeyond Technology 172(b) 201 SEI Investments 245 6,446 SERENA Software 128(b) 1,334 Siebel Systems 1,165(b) 10,951 Silicon Graphics 1,043(b) 1,512 Silicon Storage Technology 303(b) 1,618 Solectron 2,024(b) 8,096 SonicWALL 473(b) 2,233 SpeechWorks Intl 311(b) 902 State Street 820 34,850 Storage Technology 356(b) 5,055 StorageNetworks 55(b) 84 Sun Microsystems 8,557(b) 33,543 SupportSoft 176(b) 428 Switchboard 90(b) 253 Sybase 423(b) 5,139 Sykes Enterprises 246(b) 1,601 Symantec 328(b) 11,001 Synopsys 163(b) 6,972 Tanning Technology 63(b) 71 Tech Data 182(b) 6,106 Technology Solutions 121(b) 139 TeleTech Holdings 561(b) 3,181 TenFold 82(b) 16 TheStreet.com 100(b) 261 THQ 225(b) 5,598 TIBCO Software 410(b) 2,222 TippingPoint Technologies 14(b) 161 Total System Services 427 7,438 Tumbleweed Communications 63(b) 59 Ulticom 135(b) 878 Unisys 679(b) 5,106 United Online 78(b) 687 VA Software 179(b) 129 Varian 115(b) 3,663 Verity 191(b) 2,139 Verticalnet 11(b) 15 VIA NET.WORKS 119(b) 99 Viant 217(b) 323 Visual Networks 76(b) 62 VitalWorks 101(b) 734 Vitria Technology 701(b) 666 WatchGuard Technologies 53(b) 269 Wave Systems Cl A 127(b) 198 WebEx Communications 283(b) 3,826 Western Digital 1,012(b) 4,493 Wind River Systems 344(b) 1,600 Wireless Facilities 89(b) 401 ZixIt 61(b) 180 Total 1,686,356 Electronics (3.5%) Active Power 60(b) 135 Advanced Energy Inds 54(b) 798 Advanced Micro Devices 680(b) 5,460 Aeroflex 156(b) 1,186 Agilent Technologies 1,181(b) 22,297 Altera 970(b) 11,475 American Power Conversion 299(b) 3,274 Amkor Technology 578(b) 2,277 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Electronics (cont.) Amphenol Cl A 127(b) $ 4,782 Anadigics 183(b) 476 Analog Devices 911(b) 21,955 Anaren Microwave 78(b) 608 Anixter Intl 297(b) 6,415 Applied Materials 4,266(b) 63,435 Applied Micro Circuits 617(b) 2,844 Arrow Electronics 149(b) 2,543 Atmel 1,012(b) 3,178 ATMI 110(b) 1,988 Audiovox Cl A 81(b) 556 Avanex 111(b) 259 Avnet 243 4,058 AVX 404 5,300 Axcelis Technologies 444(b) 3,552 Belden 49 801 Brooks-PRI Automation 78(b) 1,484 C&D Technologies 124 1,906 Cable Design Technologies 130(b) 839 Cirrus Logic 734(b) 4,360 Conexant Systems 480(b) 974 Corning 2,459(b) 3,934 Credence Systems 337(b) 4,617 Cree 625(b) 9,450 CTS 98 755 Cymer 88(b) 2,463 Cypress Semiconductor 295(b) 3,387 DDi 124(b) 79 Dionex 44(b) 1,122 DSP Group 92(b) 1,547 DuPont Photomasks 122(b) 3,090 Electro Scientific Inds 82(b) 1,473 EMCORE 224(b) 739 ESCO Technologies 197(b) 5,713 ESS Technology 157(b) 2,041 Exar 138(b) 2,300 Foundry Networks 600(b) 4,531 GlobespanVirata 429(b) 1,519 Harman Intl Inds 100 4,310 Harris 124 3,982 Helix Technology 55 699 Integrated Circuit Systems 236(b) 4,147 Integrated Device Technology 177(b) 2,266 Integrated Electrical Services 41(b) 219 Intel 17,680 332,208 Intl Rectifier 115(b) 2,652 Jabil Circuit 413(b) 7,347 KEMET 485(b) 6,271 KLA-Tencor 467(b) 18,395 Kopin 493(b) 3,224 Kulicke & Soffa Inds 158(b) 1,040 Lam Research 271(b) 3,333 Lattice Semiconductor 499(b) 3,244 Linear Technology 826 22,368 LSI Logic 838(b) 6,536 LTX 421(b) 4,134 Maxim Integrated Products 848(b) 29,833 MEMC Electronic Materials 164(b) 590 Methode Electronics Cl A 114 1,111 Micrel 390(b) 4,473 Microchip Technology 429(b) 9,447 Micron Technology 1,510(b) 29,430 MIPS Technologies Cl A 173(b) 507 MKS Instruments 345(b) 5,865 Molecular Devices 114(b) 1,442 Molex 510 14,882 Monolithic System Technology 309(b) 2,951 MRV Communications 424(b) 551 Mykrolis 139(b) 1,086 Natl Semiconductor 402(b) 7,280 Newport 260(b) 4,186 Novellus Systems 373(b) 10,067 Oak Technology 216(b) 832 ON Semiconductor 233(b) 389 PerkinElmer 299 2,278 Photronics 151(b) 1,836 Pixelworks 79(b) 472 Plexus 136(b) 1,890 Power Integrations 80(b) 1,192 Power-One 424(b) 1,933 Rambus 504(b) 2,601 Rudolph Technologies 123(b) 1,867 Silicon Image 122(b) 683 Siliconix 173(b) 4,085 Skyworks Solutions 461(b) 1,337 SLI 155(b) 47 SONICblue 185(b) 105 Symbol Technologies 462 4,223 Technitrol 118 2,213 Tektronix 445(b) 8,295 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Electronics (cont.) Texas Instruments 4,518 $ 104,592 Thomas & Betts 178(b) 2,620 Three-Five Systems 73(b) 442 Transmeta 726(b) 770 TranSwitch 410(b) 369 Trimble Navigation 351(b) 4,595 TriQuint Semiconductor 970(b) 6,421 Varian Medical Systems 188(b) 7,858 Varian Semiconductor Equipment Associates 92(b) 2,418 Veeco Instruments 367(b) 4,991 Viasystems Group 377(b) 19 Vicor 238(b) 1,535 Vishay Intertechnology 389(b) 6,632 Vitesse Semiconductor 1,230(b) 2,977 Xilinx 873(b) 16,753 Total 977,321 Energy (4.7%) Amerada Hess 233 15,937 Anadarko Petroleum 638 27,753 Apache 351 18,077 Arch Coal 201 3,321 Ashland 112 3,995 Atmos Energy 383 8,139 Brown (Tom) 241(b) 5,543 Buckeye Partners LP 204 7,232 Burlington Resources 529 19,335 Cabot Oil & Gas Cl A 119 2,487 Chesapeake Energy 547(b) 2,926 ChevronTexaco 2,776 208,200 Conoco 1,576 38,013 CONSOL Energy 247 3,458 Devon Energy 387 16,130 EOG Resources 239 8,195 Exxon Mobil 17,730 651,755 FirstEnergy 728 22,386 Forest Oil 190(b) 4,342 FuelCell Energy 118(b) 834 Grant Prideco 289(b) 2,887 Houston Exploration 307(b) 8,842 Kerr-McGee 225 10,523 Marathon Oil 763 18,495 Murphy Oil 109 9,063 Newfield Exploration 113(b) 3,564 Noble Energy 204 6,342 Occidental Petroleum 895 24,246 Ocean Energy 459 9,134 Pennzoil-Quaker State 297 6,421 Phillips Petroleum 960 49,680 Pogo Producing 296 9,176 Premcor 236(b) 5,145 Rayovac 90(b) 1,269 Stone Energy 253(b) 8,597 Sunoco 141 5,011 Swift Energy 90(b) 1,193 Unocal 602 19,661 USEC 212 1,503 Valero Energy 268 9,128 Vintage Petroleum 470 4,127 Westport Resources 315(b) 4,615 XTO Energy 396 7,108 Total 1,293,788 Energy equipment & services (1.3%) Baker Hughes 811 21,735 BJ Services 350(b) 11,162 Cooper Cameron 252(b) 10,833 Diamond Offshore Drilling 293 6,856 Dril-Quip 75(b) 1,328 ENSCO Intl 303 7,833 Enterprise Products Partners LP 334 6,727 FMC Technologies 530(b) 9,805 Global Inds 443(b) 2,131 GlobalSantaFe 604 13,614 Grey Wolf 901(b) 2,703 Halliburton 1,131 14,929 Hanover Compressor 234(b) 2,062 Helmerich & Payne 191 6,335 Jacobs Engineering Group 298(b) 10,338 Key Energy Services 586(b) 4,711 Lone Star Technologies 99(b) 1,576 McDermott Intl 547(b) 2,565 Nabors Inds 319(b,c) 9,736 Natl-Oilwell 242(b) 4,182 Newpark Resources 330(b) 1,617 Noble 291(b) 9,428 Patterson-UTI Energy 381(b) 9,110 Pioneer Natural Resources 332(b) 8,038 Plains All American Pipeline LP 251 6,496 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Energy equipment & services (cont.) Pride Intl 551(b) $ 7,411 Progress Energy 576 26,928 Reliant Energy 751 7,555 Rowan Companies 206 4,031 Schlumberger 1,518 65,152 SEACOR SMIT 201(b) 7,984 Smith Intl 254(b) 8,029 Spinnaker Exploration 130(b) 3,658 Tidewater 150 4,038 Transocean 768 19,584 Varco Intl 404(b) 6,145 Weatherford Intl 313(b) 12,695 Total 359,060 Financial services (6.2%) Advanta Cl A 114 1,019 Affiliated Managers Group 82(b) 3,872 Alliance Capital Management Holding LP 167 4,843 Allmerica Financial 84 2,293 American Capital Strategies 217 5,510 American Express 3,515 123,939 AmeriCredit 221(b) 4,321 AmeriTrade Holding Cl A 931(b) 3,259 Bear Stearns Companies 244 14,694 BOK Financial 350 10,976 Capital One Financial 551 17,467 Catellus Development 268(b) 5,199 Chemical Financial 69 2,167 CIT Group 524 11,769 Citigroup 13,552 454,533 Corrections Corp of America 33(b) 413 Countrywide Credit Inds 323 16,412 Delphi Financial Group Cl A 68 2,710 Doral Financial 154(c) 5,904 E*TRADE Group 678(b) 2,678 Eaton Vance 130 3,479 Edwards (AG) 146 5,022 Fannie Mae 2,632 197,110 Federated Investors Cl B 302 8,583 Forest City Enterprises Cl A 133 4,575 Franklin Resources 668 22,932 Freddie Mac 1,809 112,068 Goldman Sachs Group 1,240 90,706 H&R Block 480 23,174 Household Intl 1,173 50,052 IndyMac Bancorp 143(b) 3,153 Investment Technology Group 136(b) 4,606 Investors Financial Services 208 6,400 Jefferies Group 101 4,030 Jones Lang LaSalle 46(b) 926 Kansas City Southern 566(b) 9,203 Knight Trading Group 551(b) 2,254 LaBranche 211(b) 4,224 Legg Mason 158 6,737 Lehman Brothers Holdings 636 36,068 LNR Property 108 3,537 MarketWatch.com 40(b) 176 MBNA 3,274 63,483 Merrill Lynch 2,218 79,072 Metris Companies 167 593 MGIC Investment 275 17,325 Morgan Stanley 2,902 117,096 Neuberger Berman 186 5,669 Paychex 959 25,231 Providian Financial 937 4,704 Radian Group 234 10,717 Raymond James Financial 115 3,128 Schwab (Charles) 3,349 29,974 SLM 408 37,128 Spectrasite Holdings 646(b) 72 St. Joe 211 6,014 Stilwell Financial 473 6,409 Student Loan 50 4,300 T. Rowe Price Group 274 7,406 W.P. Carey LLC 118 2,761 Waddell & Reed Financial Cl A 185 3,319 Wilmington Trust 214 6,461 Total 1,723,855 Food (1.8%) American Italian Pasta Cl A 131(b) 5,416 Archer-Daniels-Midland 1,623 18,989 Bunge 297 6,074 Campbell Soup 987 22,997 ConAgra Foods 1,415 35,531 Corn Products Intl 254 6,972 Dean Foods 372(b) 12,402 Del Monte Foods 139(b) 1,387 Delta & Pine Land 75 1,445 Dole Food 194 5,808 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Food (cont.) Dreyer's Grand Ice Cream 114 $ 7,633 Fleming Companies 223 3,066 Flowers Foods 115(b) 2,283 Fresh Del Monte Produce 209(c) 5,125 General Mills 958 39,709 Hain Celestial Group 50(b) 745 Heinz (HJ) 897 34,490 Hershey Foods 342 26,833 Hormel Foods 350 8,271 Interstate Bakeries 2 52 Kellogg 1,042 35,886 Kraft Foods Cl A 729 26,973 McCormick 354 8,054 Newhall Land & Farming 282 8,079 Performance Food Group 191(b) 6,307 Ralcorp Holdings 110(b) 2,728 Sara Lee 2,008 37,630 Sensient Technologies 384 8,221 Smithfield Foods 290(b) 5,333 Smucker (JM) 163 5,461 SUPERVALU 307 6,398 Sysco 1,679 43,738 Tootsie Roll Inds 237 8,769 Tyson Foods Cl A 848 10,727 Wrigley (Wm) Jr 589 30,127 Total 489,659 Furniture & appliances (0.3%) Black & Decker 205 9,328 Briggs & Stratton 36 1,246 Ethan Allen Interiors 180 5,620 Furniture Brands Intl 171(b) 4,343 HON Inds 358 9,662 Kimball Intl Cl B 125 1,691 La-Z-Boy 225 5,040 Leggett & Platt 450 10,121 Maytag 136 4,506 Miller (Herman) 471 7,983 Mohawk Inds 250(b) 11,875 Stanley Works 211 7,615 Whirlpool 165 9,466 Total 88,496 Health care (11.1%) Abbott Laboratories 4,050 167,710 Aclara Biosciences 80(b) 143 Affymetrix 268(b) 4,784 Albany Molecular Research 211(b) 4,332 Alexion Pharmaceuticals 69(b) 1,070 Alkermes 188(b) 857 Allergan 318 19,236 Alpharma Cl A 344 3,839 Amgen 3,349(b) 152,870 Andrx Group 145(b) 3,218 Apogent Technologies 161(b) 3,123 Applera-Applied Biosystem Group 523 9,759 Arrow Intl 230 8,655 ArthoCare 74(b) 951 Bard (CR) 138 7,462 Barr Laboratories 105(b) 6,405 Bausch & Lomb 1 33 Baxter Intl 1,513 60,384 Beckman Coulter 196 7,683 Becton, Dickinson & Co 610 17,727 Bio-Technology General 208(b) 838 Biogen 373(b) 13,417 Biomet 665 17,243 Boston Scientific 1,034(b) 31,010 Bristol-Myers Squibb 5,097 119,423 Bruker Daltonics 255(b) 893 Caliper Technologies 61(b) 298 Celgene 189(b) 3,245 Cell Pathways 111(b) 104 Cell Therapeutics 296(b) 945 Cephalon 133(b) 6,384 Cerus 87(b) 2,484 Chiron 450(b) 15,183 CIMA Labs 81(b) 1,612 Coherent 63(b) 1,451 Conmed 117(b) 2,135 Corixa 78(b) 484 CTI Molecular Imaging 284(b) 5,669 Cubist Pharmaceuticals 270(b) 2,435 CV Therapeutics 275(b) 6,875 CYTOGEN 242(b) 206 Datascope 52 1,355 DENTSPLY Intl 214 8,483 Diagnostic Products 162 5,816 Diversa 12(b) 105 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Health care (cont.) Endo Pharmaceuticals Holdings 589(b) $ 4,818 Enzo Biochem 88(b) 1,164 Enzon 220(b) 4,972 Forest Laboratories 448(b) 34,707 Genentech 544(b) 18,904 Genzyme-General Division 508(b) 11,572 Gilead Sciences 507(b) 15,448 Guidant 728(b) 25,334 Haemonetics 108(b) 2,867 Human Genome Sciences 254(b) 4,402 ICN Pharmaceuticals 165 1,731 ICOS 91(b) 2,226 IDEC Pharmaceuticals 361(b) 16,097 IDEXX Laboratories 136(b) 3,978 IGEN Intl 77(b) 2,353 ImClone Systems 172(b) 1,223 Immunomedics 523 3,222 Incyte Genomics 333(b) 2,061 Inhale Therapeutic Systems 459(b) 3,443 InterMune 133(b) 3,159 Invacare 139 4,650 Invitrogen 122(b) 4,252 Isis Pharmaceuticals 266(b) 2,354 IVAX 417(b) 5,630 Johnson & Johnson 7,872 417,215 King Pharmaceuticals 639(b) 13,553 Laboratory Corp America Holdings 320(b) 10,976 Lexicon Genetics 113(b) 687 Lilly (Eli) 2,961 172,981 Maxim Pharmaceuticals 134(b) 429 Maxygen 69(b) 620 Medarex 418(b) 3,419 Medicis Pharmaceutical Cl A 87(b) 3,647 MedImmune 702(b) 20,877 Medtronic 3,189 128,836 Mentor 84 2,673 Merck & Co 5,992 297,202 Millennium Pharmaceuticals 942(b) 11,700 Mylan Laboratories 291 9,440 Myriad Genetics 78(b) 1,803 Nanogen 75(b) 158 Neurocrine Biosciences 178(b) 6,534 NPS Pharmaceuticals 314(b) 6,836 Pfizer 16,326 528,145 Pharmaceutical Resources 158(b) 4,329 Pharmacia 3,417 152,877 Pharmacopeia 63(b) 427 Pharmacyclics 57(b) 202 Priority Healthcare Cl B 162(b) 3,392 Protein Design Labs 591(b) 8,032 Quest Diagnostics 254(b) 15,339 Regeneron Pharmaceuticals 210(b) 3,612 ResMed 146(b) 3,958 Respironics 181(b) 5,796 SangStat Medical 83(b) 1,612 Schering-Plough 3,810 97,155 Scios 259(b) 8,122 Sepracor 188(b) 1,269 Sequenom 61(b) 143 SICOR 444(b) 7,082 St. Jude Medical 458(b) 17,404 STERIS 233(b) 4,867 Stryker 474 23,994 SuperGen 82(b) 417 Tanox 122(b) 1,427 Techne 124(b) 3,429 Thoratec 299(b) 2,033 Titan Pharmaceuticals 123(b) 232 Transkaryotic Therapies 189(b) 7,286 Triangle Pharmaceuticals 121(b) 348 Trimeris 77(b) 3,598 United Therapeutics 36(b) 437 Vertex Pharmaceuticals 177(b) 3,494 Viasys Healthcare 61(b) 894 VISX 248(b) 2,021 Waters 269(b) 6,109 Watson Pharmaceuticals 223(b) 4,699 Wyeth 3,433 136,977 Zimmer Holdings 450(b) 16,754 Total 3,096,399 Health care services (2.4%) Abgenix 446(b) 4,112 Accredo Health 199(b) 9,493 AdvancePCS 330(b) 7,399 Aetna 381 16,642 Allscripts Healthcare Solutions 105(b) 329 AmeriPath 197(b) 3,203 AmerisourceBergen 273 18,288 Anthem 251(b) 17,038 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Health care services (cont.) Applera - Cerera Genomics Group 259(b) $ 2,727 Apria Healthcare Group 158(b) 3,700 Beverly Enterprises 516(b) 1,636 BioMarin Pharmaceutical 125(b) 556 Cardinal Health 1,184 68,198 Caremark Rx 598(b) 9,389 Cerner 119(b) 5,165 Charles River Laboratories Intl 171(b) 6,515 Community Health Systems 225(b) 5,569 Covance 206(b) 3,490 Coventry Health Care 256(b) 7,718 Cytyc 396(b) 3,410 DaVita 359(b) 8,472 Eclipsys 132(b) 859 Exelixis 126(b) 881 Express Scripts Cl A 179(b) 9,308 First Health Group 262(b) 6,587 Five Star Quality Care 9(b) 19 Gene Logic 68(b) 599 Genesis Health Ventures 432(b) 6,960 Genta 385(b) 3,230 Gentiva Health Services 48 398 HCA 1,340 62,980 Health Management Associates Cl A 561(b) 11,349 Health Net 376(b) 8,415 Healthsouth 844(b) 8,651 Hillenbrand Inds 160 8,650 Humana 420(b) 5,170 Hyseq 38(b) 80 IMS Health 626 9,903 Kindred Healthcare 124(b) 4,190 LifePoint Hospitals 142(b) 4,835 Lincare Holdings 288(b) 9,037 Manor Care 248(b) 5,454 McKesson 757 24,920 MedicaLogic/Medscape 126(b) 28 Neoforma 10(b) 73 Omnicare 278 5,977 Orchid Biosciences 133(b) 129 Orthodontic Centers of America 196(b) 2,754 OSI Pharmaceuticals 94(b) 2,816 Oxford Health Plans 190(b) 8,174 PacifiCare Health Systems 216(b) 5,314 Patterson Dental 167(b) 7,730 Pediatrix Medical Group 162(b) 4,828 Pharmaceutical Product Development 294(b) 6,776 PRAECIS Pharmaceuticals 135(b) 473 Province Healthcare 258(b) 4,954 PSS World Medical 296(b) 1,598 Quintiles Transnational 267(b) 2,651 Renal Care Group 168(b) 5,443 Schein (Henry) 204(b) 8,764 Service Corp Intl 1,466(b) 3,299 Stewart Enterprises Cl A 398(b) 2,125 Tenet Healthcare 1,285(b) 61,230 Therasense 275(b) 3,847 Triad Hospitals 169(b) 6,757 Trigon Healthcare 103(b) 10,476 United Surgical Partners Intl 243(b) 6,981 UnitedHealth Group 821 71,968 Universal Health Services Cl B 164(b) 7,754 US Oncology 640(b) 4,685 Wellpoint Health Networks 430(b) 30,745 XOMA 364(b) 1,710 Total 675,583 Household products (2.6%) Alberto-Culver Cl B 171 8,124 Avon Products 622 28,774 Boyds Collection 158(b) 991 Church & Dwight 241 6,755 Clorox 578 22,253 Colgate-Palmolive 1,453 74,612 Dial 359 7,187 Energizer Holdings 241(b) 6,471 Estee Lauder Cl A 271 8,217 Gillette 2,780 91,407 Intl Flavors/Fragrances 165 5,047 Kimberly-Clark 1,366 83,394 Libbey 70 2,079 Nautilus Group 176(b) 5,255 Newell Rubbermaid 684 20,575 Playtex Products 26(b) 291 Procter & Gamble 3,414 303,813 Scotts Cl A 156(b) 7,098 ServiceMaster 741 9,040 Tupperware 387 6,714 Valence Technology 164(b) 282 Viad 151 3,447 Water Pik Technologies 14(b) 160 Yankee Candle 437(b) 9,583 Total 711,569 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Industrial equipment & services (1.1%) AGCO 173(b) $ 3,102 AMETEK 107 3,517 Astec Inds 78(b) 1,025 Asyst Technologies 64(b) 765 Blyth 182 5,431 Caterpillar 865 38,665 Cintas 428 18,784 Cooper Inds Cl A 218 6,789 Deere & Co 574 24,119 Donaldson 197 6,603 Fastenal 146 5,558 FEI 245(b) 4,479 Flowserve 127(b) 2,191 G & K Services Cl A 49 1,478 Graco 136 3,400 Harsco 196 5,755 IDEX 75 2,336 Illinois Tool Works 781 51,537 Ingersoll-Rand Cl A 423(c) 16,239 JLG Inds 146 1,314 Kadant 25(b) 356 Kaydon 80 1,713 Kennametal 230 7,461 Lincoln Electric Holdings 97 2,242 Manitowoc 66 2,152 Milacron 113 858 Minerals Technologies 170 6,350 Modine Mfg 86 2,021 NACCO Inds Cl A 31 1,455 Nordson 88 2,121 Parker-Hannifin 253 10,186 Regal Beloit 97 1,809 Roper Inds 217 6,456 Tecumseh Products Cl A 45 2,350 Teleflex 212 10,460 Terex 67(b) 1,309 Thermo Electron 418(b) 7,098 Timken 403 8,044 Toro 183 9,150 Trinity Inds 296 5,366 UNOVA 157(b) 760 Wabtec 121 1,514 WESCO Intl 146(b) 899 Total 295,217 Insurance (5.7%) AFLAC 1,359 42,686 Alfa 428 5,354 Alleghany 27 5,130 Allstate 1,828 69,482 Ambac Financial Group 277 17,459 American Intl Group 6,882 439,896 American Natl Insurance 78 6,669 AmerUs Group 140 4,463 Aon 621 14,749 Berkley (WR) 135 4,767 Berkshire Hathaway Cl A 3(b) 204,900 Berkshire Hathaway Cl B 30(b) 68,610 Brown & Brown 240 6,905 Chubb 415 26,929 CIGNA 371 33,390 Cincinnati Financial 420 16,838 CNA Financial 552(b) 13,977 Commerce Group 162 6,010 Conseco 1,930(b) 1,351 Crawford Cl B 167 1,294 Erie Indemnity Cl A 161 7,165 Fidelity Natl Financial 225 6,658 Gallagher (Arthur J) 156 4,588 Great American Financial Resources 410 5,884 Hartford Financial Services Group 628 31,777 HCC Insurance Holdings 216 4,871 Hilb, Rogal & Hamilton 180 7,749 Hooper Holmes 154 906 Horace Mann Educators 372 6,343 Jefferson-Pilot 396 17,206 John Hancock Financial Services 753 24,924 Leucadia Natl 303 10,220 Liberty 189 6,360 Lincoln Natl 467 17,134 Loews 477 22,629 Markel 20(b) 4,050 Marsh & McLennan 1,408 67,443 MBIA 374 18,547 Mercury General 129 6,128 MetLife 1,858 52,377 MONY Group 141 4,291 Nationwide Financial Services Cl A 203 6,269 Odyssey Re Holdings 395 5,814 Ohio Casualty 526(b) 9,899 Old Republic Intl 253 7,964 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Insurance (cont.) Philadelphia Consolidated Holding 160(b) $ 6,437 Phoenix Companies 345 5,468 PMI Group 174 6,180 Principal Financial Group 871(b) 25,006 ProAssurance 84(b) 1,432 Progressive 525 26,854 Protective Life 192 6,144 Prudential Financial 1,534(b) 50,607 Reinsurance Group of America 142 4,217 SAFECO 303 9,617 St. Paul Companies 546 17,041 StanCorp Financial Group 93 5,188 Torchmark 287 10,401 Transatlantic Holdings 120 8,778 Travelers Property Casualty Cl A 546(b) 8,900 UICI 404(b) 6,828 Unitrin 113 3,895 UnumProvident 620 12,685 White Mountains Insurance Group 16 5,440 Total 1,569,173 Leisure time & entertainment (2.0%) Activision 231(b) 6,634 ANC Rental 91(b) 18 AOL Time Warner 11,518(b) 132,456 Argosy Gaming 206(b) 5,078 Aztar 184(b) 2,576 Bally Total Fitness Holdings 148(b) 2,186 Blockbuster Cl A 221 5,105 Boyd Gaming 110(b) 1,631 Brunswick 186 4,256 Callaway Golf 241 3,791 Carnival 1,477 39,140 Cedar Fair LP 198 4,524 Dover Downs Gaming & Entertainment 97 963 Dover Motorsports 139 598 Gaylord Entertainment 149(b) 2,998 GTECH Holdings 192(b) 3,830 Handleman 142(b) 1,839 Harley-Davidson 763 36,136 Harrah's Entertainment 283(b) 13,392 Hasbro 303 3,712 Hotels.com Cl A 115(b) 4,911 Intl Game Technology 208(b) 12,116 Intl Speedway Cl A 82 3,050 Mandalay Resort Group 186(b) 5,275 Mattel 1,087 20,446 Metro-Goldwyn-Mayer 493(b) 5,300 MGM Mirage 390(b) 13,650 Pinnacle Entertainment 118(b) 956 Polaris Inds 78 5,305 Regal Entertainment Group 270(b) 5,338 Royal Caribbean Cruises 392 7,769 Six Flags 252(b) 3,785 Speedway Motorsports 318(b) 7,537 SportsLine.com 77(b) 77 Station Casinos 508(b) 6,706 Ticketmaster Cl B 354(b) 5,721 Vail Resorts 98(b) 1,681 Viacom Cl B 4,614(b) 179,576 Total 560,062 Media (2.9%) 4 Kids Entertainment 34(b) 680 ACTV 131(b) 149 American Greetings Cl A 590 9,481 Apollo Group Cl A 400(b) 15,700 Banta 85 2,798 Belo Cl A 184 4,020 Cablevision Systems NY Group Cl A 277(b) 2,252 Catalina Marketing 282(b) 8,105 Clear Channel Communications 1,532(b) 39,909 Comcast Cl A 2,380(b) 49,742 Cox Communications Cl A 1,491(b) 41,226 Cox Radio Cl A 337(b) 7,835 Cross Media Marketing 16(b) 36 Disney (Walt) 5,306 94,076 Donnelley (RH) 109(b) 2,611 Donnelley (RR) & Sons 198 5,502 DoubleClick 708(b) 3,370 Dow Jones 191 7,869 Dun & Bradstreet 187(b) 6,049 eBay 733(b) 41,847 Emmis Communications Cl A 294(b) 4,663 Entercom Communications Cl A 108(b) 4,676 Entravision Communications Cl A 500(b) 5,000 Fox Entertainment Group Cl A 731(b) 14,583 Gannett 698 50,194 Gartner Cl B 468(b) 3,819 Getty Images 330(b) 5,436 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Media (cont.) Grey Global Group 5 $ 3,375 Harland (John H) 105 2,550 Harte-Hanks 511 9,898 Hearst-Argyle Television Cl A 253(b) 5,948 Hispanic Broadcasting 488(b) 11,600 Hollinger Intl Cl A 585 5,850 Insight Communications 254(b) 2,301 Interactive Data 435(b) 5,694 Interpublic Group of Companies 923 19,300 Journal Register 147(b) 2,678 Knight-Ridder 177 10,717 Lamar Advertising 186(b) 5,874 Lee Enterprises 258 8,579 Macrovision 324(b) 3,551 McClatchy Cl A 152 8,466 McGraw-Hill Companies 508 31,775 Media General Cl A 179 9,090 Mediacom Communications 324(b) 1,782 Meredith 151 5,507 Moody's 356 17,658 New York Times Cl A 352 15,928 Omnicom Group 468 24,949 On Command 113(b) 130 Paxson Communications Cl A 168(b) 395 Pegasus Communications 337(b) 263 Pixar 223(b) 9,810 Playboy Enterprises Cl B 86(b) 907 Price Communications 311(b) 4,360 PRIMEDIA 764(b) 993 Radio One Cl A 44(b) 662 Reader's Digest Assn Cl A 528 8,818 Scholastic 125(b) 4,874 Scripps (EW) Cl A 172 13,106 Sinclair Broadcast Group Cl A 190(b) 2,233 Sirius Satellite Radio 274(b) 562 TiVo 68(b) 187 TMP Worldwide 239(b) 3,690 Tribune 764 30,484 UnitedGlobalCom Cl A 489(b) 978 Univision Communications Cl A 601(b) 17,183 USA Interactive 899(b) 19,822 Valassis Communications 261(b) 9,579 ValueVision Media Cl A 71(b) 1,069 Washington Post Cl B 21 13,125 Westwood One 275(b) 8,731 Wiley (John) & Sons Cl A 262 5,769 Wink Communications 90(b) 266 Young Broadcasting Cl A 42(b) 462 Zomax 114(b) 420 Total 803,576 Metals (0.7%) AK Steel Holdings 257(b) 2,411 Alcoa 2,205 59,644 Allegheny Technologies 464 4,440 Avery Dennison 289 17,979 Bethlehem Steel 317(b) 54 Carpenter Technology 86 1,985 Cleveland-Cliffs 8 195 Commercial Metals 62 1,158 FreeMarkets 182(b) 1,229 Freeport-McMoRan Copper & Gold Cl B 394(b) 6,016 GrafTech Intl 93(b) 739 Kaiser Aluminum 286(b) 11 Martin Marietta Materials 220 8,433 Meridian Gold 480(b) 6,782 Mueller Inds 200(b) 5,160 Newmont Mining 1,004 24,498 Nucor 171 9,547 Phelps Dodge 170 5,811 Pittston Brink's Group 369 8,387 Reliance Steel & Aluminum 99 2,455 Ryerson Tull 89 850 Shaw Group 166(b) 3,873 Steel Dynamics 134(b) 2,281 Stillwater Mining 188(b) 1,786 United States Steel 510 8,492 Worthington Inds 255 4,475 Total 188,691 Miscellaneous (0.3%) 24/7 Real Media 49(b) 12 ABM Inds 160 2,640 Advanced Medical Optics 70(b) 714 Agere Systems Cl A 4,366(b) 8,295 Alaska Communications Systems Holdings 748(b) 1,922 AMERIGROUP 193(b) 4,927 Blue Martini Software 378(b) 318 CacheFlow 159(b) 75 Capstone Turbine 413(b) 524 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Miscellaneous (cont.) Champion Enterprises 246(b) $ 989 Click Commerce 130(b) 95 Cosine Communications 298(b) 101 Crossroads Systems 132(b) 110 Cumulus Media Cl A 68(b) 907 CuraGen 216(b) 1,406 Digex 39(b) 6 DigitalThink 70(b) 79 Dobson Communications Cl A 311(b) 215 Edwards Lifesciences 356(b) 8,665 Federal Signal 104 2,176 FirePond 53(b) 16 Illumina 128(b) 570 Inet Technologies 169(b) 710 Interdigital Communications 228(b) 1,635 Internap Network Services 639(b) 102 Intersil 356(b) 7,757 InterTrust Technologies 360(b) 1,087 Intraware 67(b) 53 John Nuveen Cl A 242 5,329 Kosan Biosciences 703(b) 4,759 Lante 84(b) 92 Marimba 65(b) 85 MCK Communications 4(b) 4 MeadWestvaco 509 13,533 NaviSite 279(b) 33 Numerical Technologies 159(b) 601 Oplink Communications 362(b) 326 Packeteer 63(b) 223 Philadelphia Suburban 250 4,950 StarMedia Network 150(b) 2 Sybron Dental Specialties 340(b) 4,457 Tenneco Automotive 53(b) 423 Triton PCS Holdings Cl A 570(b) 1,197 Tularik 14(b) 112 ValueClick 115(b) 282 Vicinity 103(b) 209 ViroPharma 41(b) 63 West Pharmaceutical Services 54 1,410 WorldGate Communications 87(b) 100 Total 84,296 Multi-industry conglomerates (6.3%) 3M 1,020 128,347 Actuant 35(b) 1,304 Acuitiy Brands 472 6,207 American Standard 164(b) 11,728 AMN Healthcare Services 232(b) 6,600 ARAMARK Cl B 254(b) 5,461 Arbitron 45(b) 1,501 Baldor Electric 107 2,340 Brady Cl A 66 1,815 Career Education 184(b) 8,122 CDI 71(b) 2,012 Cendant 2,859(b) 39,511 Century Business Services 188(b) 579 ChoicePoint 217(b) 9,090 Corinthian Colleges 308(b) 9,717 Corporate Executive Board 309(b) 9,335 Crane 261 5,998 Danaher 353 21,904 DeVry 164(b) 3,239 Diebold 215 7,325 Dover 519 15,233 Eastman Kodak 760 23,393 Edison Schools 176(b) 172 Education Management 176(b) 7,024 Electronics for Imaging 324(b) 5,032 Emerson Electric 1,078 54,924 EnPro Inds 53(b) 296 Exult 410(b) 1,189 Fisher Scientific Intl 290(b) 7,903 General Electric 26,172 842,738 Grainger (WW) 220 10,789 Honeywell Intl 2,084 67,438 Hubbell Cl B 207 6,332 IKON Office Solutions 579 5,269 Imagistics Intl 43(b) 731 Imation 177(b) 5,388 ITT Educational Services 220(b) 3,465 ITT Inds 205 13,095 Kelly Services Cl A 315 7,856 Korn/Ferry Intl 91(b) 642 Lancaster Colony 168 6,278 Mail-Well 153(b) 239 Manpower 200 7,532 MemberWorks 60(b) 900 Monsanto 188 2,858 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Multi-industry conglomerates (cont.) MPS Group 541(b) $ 2,867 Natl Service Inds 16 143 NCO Group 42(b) 623 PDI 39(b) 534 Pentair 197 8,012 Pre-Paid Legal Services 56(b) 1,132 ProQuest 216(b) 6,372 Robert Half Intl 396(b) 7,900 S&P Depositary Receipts 2,909 266,174 SOURCECORP 60(b) 1,270 Spherion 129(b) 1,047 Student Advantage 16(b) 25 Sylvan Learning Systems 372(b) 5,450 Symyx Technologies 88(b) 792 Teledyne Technologies 42(b) 653 Textron 372 14,657 Triarc Companies 102(b) 2,532 U.S. Inds 140(b) 339 Weight Watchers Intl 258(b) 11,262 Wesco Financial 18 5,614 Xerox 1,776(b) 12,343 YORK Intl 265 8,493 Zebra Technologies Cl A 137(b) 6,914 Total 1,743,999 Paper & packaging (0.5%) AptarGroup 262 7,839 Ball 172 7,399 Bemis 127 6,104 Boise Cascade 203 5,885 Bowater 143 6,519 Caraustar Inds 82 890 Chesapeake 32 672 Crown Cork & Seal 787(b) 2,715 Glatfelter 481 7,143 Greif Bros Cl A 144 3,604 Intl Paper 1,265 50,372 Longview Fibre 65 530 Owens-Illinois 499(b) 6,238 Pactiv 356(b) 6,469 Rayonier 90 4,464 Sealed Air 202(b) 2,931 Smurfit-Stone Container 551(b) 7,945 Sonoco Products 260 6,318 Wausau-Mosinee Paper 420 4,339 Total 138,376 Real estate investment trust (1.8%) AMB Property 135 3,989 Annaly Mortgage Management 391 7,718 Apartment Investment & Management Cl A 235 10,566 Archstone-Smith Trust 460 11,684 Arden Realty 208 5,404 AvalonBay Communities 161 7,237 Boston Properties 182 6,789 BRE Properties Cl A 275 8,800 Camden Property Trust 192 7,104 CarrAmerica Realty 130 3,575 CBL & Associates Properties 87 3,194 CenterPoint Properties 187 10,925 Chateau Communities 79 2,240 Chelsea Poperty Group 136 4,600 Colonial Properties Trust 80 2,876 Cousins Properties 317 7,592 Crescent Real Estate Equities 186 3,184 Developers Diversified Realty 476 10,948 Duke Realty 303 7,802 Equity Office Properties Trust 1,087 28,674 Equity Residential 668 17,868 Essex Property Trust 61 3,111 Federal Realty Investment Trust 240 6,552 FelCor Lodging Trust 266 4,003 First Industrial Realty Trust 277 8,961 Gables Residential Trust 83 2,416 General Growth Properties 163 7,902 Glenborough Realty Trust 139 2,788 Health Care 103 3,039 Health Care Property Investors 153 6,703 Healthcare Realty Trust 338 10,647 Highwoods Properties 374 9,967 Home Properties of New York 73 2,629 Hospitality Properties Trust 215 7,228 Host Marriott 612 6,885 HRPT Properties Trust 923 7,633 iStar Financial 185 5,467 JDN Realty 106 1,277 Kilroy Realty 178 4,320 Kimco Realty 228 7,328 Koger Equity 131 2,336 Liberty Property Trust 130 4,180 Macerich 99 2,960 Mack-Cali Realty 223 6,978 Manufactured Home Communities 88 2,974 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Real estate investment trust (cont.) MeriStar Hospitality 309 $ 4,249 Mid-America Apartment Communities 87 2,240 Mills 74 2,183 Nationwide Health Properties 120 2,218 New Plan Excel Realty Trust 287 5,617 Pan Pacific Retail Properties 157 5,424 Plum Creek Timber 433 12,341 Post Properties 285 8,396 Prentiss Properties Trust 323 9,167 ProLogis 499 12,725 PS Business Parks 88 3,098 Public Storage 287 10,834 Realty Income 293 9,903 Reckson Associates Realty 212 4,846 Regency Centers 175 5,513 Rouse 221 6,962 Shurgard Storage Centers Cl A 84 2,940 Simon Property Group 460 16,554 SL Green Realty 104 3,354 Starwood Hotels & Resorts Worldwide 507 13,030 Summit Properties 108 2,317 Sun Communities 63 2,407 Taubman Centers 182 2,697 Trizec Properties 393 5,482 United Dominion Realty Trust 403 6,529 Ventas 518 6,734 Vornado Realty Trust 278 12,107 Washington Real Estate Investment Trust 130 3,406 Weingarten Realty Investors 152 5,639 Total 489,965 Restaurants & lodging (1.0%) 21st Century Insurance Group 386 6,446 AFC Enterprises 190(b) 5,159 Applebee's Intl 243 5,519 Bob Evans Farms 130 3,556 Boca Resorts Cl A 199(b) 2,422 Brinker Intl 237(b) 7,726 CBRL Group 144 4,308 CEC Entertainment 213(b) 8,030 Cheesecake Factory (The) 168(b) 6,088 Choice Hotels Intl 241(b) 4,945 Darden Restaurants 441 10,240 Extended Stay America 260(b) 3,640 Hilton Hotels 788 9,629 Jack in the Box 293(b) 8,116 Krispy Kreme Doughnuts 174(b) 6,151 La Quinta 1,159(b) 6,664 Marriott Intl Cl A 596 19,966 McDonald's 3,386 83,804 Outback Steakhouse 189(b) 6,037 Papa John's Intl 47(b) 1,484 Park Place Entertainment 794(b) 7,289 Ruby Tuesday 210 4,053 Sonic 144(b) 4,044 Starbucks 960(b) 18,845 Wendy's Intl 275 10,117 Wyndham Intl Cl A 727(b) 603 Yum! Brands 748(b) 23,113 Total 277,994 Retail (6.8%) 7-Eleven 812(b) 6,309 99 Cents Only Stores 180(b) 4,388 Abercrombie & Fitch 265(b) 5,989 Albertson's 990 27,898 Amazon.com 983(b) 14,213 American Eagle Outfitters 156(b) 2,583 AnnTaylor Stores 342(b) 8,495 AutoNation 729(b) 9,834 AutoZone 281(b) 20,724 Barnes & Noble 279(b) 6,010 barnesandnoble.com Cl A 105(b) 90 bebe stores 102(b) 1,775 Bed Bath & Beyond 706(b) 21,886 Best Buy 796(b) 26,188 Big Lots 353 5,860 BJ's Wholesale Club 176(b) 6,186 Borders Group 270(b) 4,779 Casey's General Stores 158 1,809 CDW Computer Centers 212(b) 10,134 Charming Shoppes 390(b) 2,839 Children's Place Retail Stores 76(b) 1,441 Circuit City Stores-Circuit City Group 446 7,604 Claire's Stores 125 2,250 Copart 262(b) 3,485 Costco Wholesale 1,116(b) 38,915 CVS 1,017 29,086 Dillard's Cl A 429 10,082 Dollar General 870 14,929 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Retail (cont.) Dollar Tree Stores 226(b) $ 7,050 Drugstore.com 66(b) 170 Expedia Cl A 135(b) 6,564 Family Dollar Stores 387 11,722 Federated Dept Stores 526(b) 19,783 Foot Locker 267(b) 2,964 Footstar 140(b) 2,443 Fossil 109(b) 2,010 Gap 2,173 26,402 Great Atlantic & Pacific Tea 313(b) 3,847 Hanover Direct 889(b) 178 Haverty Furniture Companies 78 1,026 Hollywood Entertainment 478(b) 7,705 Home Depot 6,173 190,622 K mart 1,060(b) 763 Kohl's 859(b) 56,694 Kroger 2,059(b) 40,109 Limited Brands 1,346 24,188 Linens `N Things 303(b) 7,378 Longs Drug Stores 314 7,674 Lowe's Companies 1,985 75,132 May Dept Stores 722 22,180 Men's Wearhouse 334(b) 6,827 Michaels Stores 214(b) 7,924 NBTY 271(b) 4,149 Neiman Marcus Group Cl A 155(b) 4,387 Nordstrom 345 6,521 Office Depot 757(b) 9,826 OfficeMax 432(b) 2,009 Overture Services 276(b) 6,307 Pacific Sunwear of California 240(b) 4,435 Pathmark Stores 274(b) 4,505 Payless ShoeSource 76(b) 3,411 Penney (JC) 584 10,278 Pep Boys - Manny, Moe & Jack 1 14 Perrigo 260(b) 3,006 PETsMART 371(b) 5,357 Pier 1 Imports 337 5,830 priceline.com 1,014(b) 1,876 PurchasePro.com 70(b) 23 RadioShack 391 10,010 Regis 363 9,213 Rent-A-Center 112(b) 5,993 Rite Aid 3,455(b) 7,463 Ross Stores 205 7,720 Russ Berrie 101 3,389 Safeway 1,264(b) 35,164 Saks 680(b) 7,235 SciQuest 82(b) 63 Sears, Roebuck & Co 803 37,878 ShopKo Stores 78(b) 1,289 Sotheby's Holdings Cl A 464(b) 5,266 Stage Stores 49(b) 1,335 Stamps.com 196(b) 894 Staples 1,163(b) 19,410 Talbots 116 3,403 Target 2,378 79,306 Tiffany 317 7,811 TJX Companies 1,420 25,177 Too 60(b) 1,501 Toys "R" Us 385(b) 5,190 Trans World Entertainment 170(b) 961 Tuesday Morning 319(b) 4,842 United Stationers 300(b) 7,677 Value City Dept Stores 129(b) 334 Wal-Mart Stores 11,629 571,914 Walgreen 2,615 92,388 Webvan Group 312(b,d) -- Weis Markets 239 8,688 Whole Foods Market 152(b) 6,668 Wild Oats Markets 75(b) 838 Williams-Sonoma 318(b) 7,235 Winn-Dixie Stores 369 5,812 Zale 240(b) 7,224 Total 1,888,361 Textiles & apparel (0.4%) Burlington Coat Factory Warehouse 4 74 Chico's FAS 390(b) 6,158 Coach 268(b) 6,110 Columbia Sportswear 113(b) 3,949 Guess? 174(b) 974 Jones Apparel Group 262(b) 8,916 Kellwood 295 7,729 Kenneth Cole Productions Cl A 84(b) 2,213 Liz Claiborne 190 5,482 Nautica Enterprises 139(b) 1,649 Nike Cl B 689 33,961 Oakley 317(b) 4,359 Polo Ralph Lauren Cl A 384(b) 7,703 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Textile & apparel (cont.) Reebok Intl 224(b) $ 6,028 Russell 135 2,214 Timberland Cl A 104(b) 3,944 Unifi 175(b) 1,391 VF 274 10,571 WestPoint Stevens 100(b) 210 Wolverine World Wide 400 5,660 Total 119,295 Transportation (1.5%) AMERCO 73(b) 759 ArvinMeritor 198 4,190 Atlas Air Worldwide Holdings 205(b) 769 Burlington Northern Santa Fe 974 28,655 C.H. Robinson Worldwide 144 4,320 CNF 159 5,061 CSX 546 18,875 EGL 203(b) 2,379 Expeditors Intl of Washington 268 7,906 FedEx 742 37,805 Florida East Coast Inds 155 3,574 GATX 118 2,987 Heartland Express 258(b) 5,150 Hunt (JB) Transport Services 147(b) 3,869 Norfolk Southern 971 19,663 Overseas Shipbuilding Group 180 3,586 Ryder System 306 8,008 Swift Transportation 473(b) 8,585 Union Pacific 646 37,901 United Parcel Service Cl B 2,923 190,988 USFreightways 55 1,796 Werner Enterprises 317 6,102 Yellow Corp 119(b) 2,975 Total 405,903 Utilities -- electric (2.3%) AES 1,214(b) 2,489 Allegheny Energy 325 6,841 Allete 325 7,641 Alliant Energy 122 2,334 Ameren 377 16,475 American Electric Power 826 27,184 American Water Works 235 10,258 Aquila 368 2,642 Avista 115 1,409 Black Hills 112 2,853 Calpine 978(b) 4,861 CH Energy Group 52 2,575 Cinergy 436 14,780 Cleco 407 6,089 CMS Energy 286 2,322 Conectiv 392 9,890 Consolidated Edison 535 22,925 Constellation Energy Group 426 11,873 Dominion Resources 726 43,152 DPL 247 4,594 DQE 382 5,195 DTE Energy 384 15,729 Duke Energy 2,149 54,777 Edison Intl 686(b) 8,987 Energy East 378 7,874 Entergy 557 22,575 Exelon 808 39,632 FPL Group 430 24,360 Great Plains Energy 284 5,723 Hawaiian Electric Inds 128 5,481 Idacorp 112 2,858 MDU Resources Group 158 3,564 Mirant 988(b) 3,557 NewPower Holdings 667(b) 13 NiSource SAILS 128(b) 255 Northeast Utilities 369 6,144 NSTAR 98 4,194 OGE Energy 223 4,458 Peabody Energy 247 5,533 PG&E 976(b) 13,566 Pinnacle West Capital 201 6,834 Plug Power 325(b) 1,791 PNM Resources 341 6,803 Potomac Electric Power 184 3,667 PPL 317 10,477 Progress Energy - CVO 153(b) 46 Public Service Enterprise Group 532 18,381 Puget Energy 395 8,287 Reliant Resources 251(b) 1,160 SCANA 237 7,027 Sempra Energy 488 10,346 Sierra Pacific Resources 390 2,441 Southern Co 1,782 51,285 TECO Energy 311 7,184 See accompanying notes to investments in securities.
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AXP Total Stock Market Index Fund Common stocks (continued) Issuer Shares Value(a) Utilities -- electric (cont.) Touch America Holdings 654(b) $ 641 TXU 690 29,760 UIL Holdings 41 1,786 Westar Energy 370 4,336 Wisconsin Energy 307 7,776 WPS Resources 245 8,918 Xcel Energy 1,047 7,287 Total 633,895 Utilities -- gas (0.5%) AGL Resources 399 9,065 Dynegy Cl A 913 2,191 El Paso 1,510 21,819 Equitable Resources 152 5,197 KeySpan 294 10,261 Kinder Morgan 322 13,407 Kinder Morgan Management LLC 201 5,537 Natl Fuel Gas 236 4,562 New Jersey Resources 75 2,265 NiSource 445 8,811 Northwest Natural Gas 77 2,164 ONEOK 424 7,844 Peoples Energy 202 7,092 Piedmont Natural Gas 210 7,098 Pure Resources 281(b) 5,075 Questar 134 3,028 Southern Union 330(b) 4,620 Teppco Partners LP 280 8,302 UGI 88 2,728 Vectren 201 4,764 Western Gas Resources 114 3,565 WGL Holdings 298 7,274 Williams Companies 1,286 3,794 Total 150,463 Utilities -- telephone (2.4%) Alamosa Holdings 347(b) 340 Allegiance Telecom 604(b) 743 ALLTEL 765 30,998 AT&T 9,931 101,098 BellSouth 4,948 132,853 BroadWing 1,437(b) 2,917 CenturyTel 323 8,592 Choice One Communications 112(b) 22 Citizens Communications 662(b) 3,628 Crown Castle Intl 461(b) 1,060 DSL.net 274(b) 74 Infonet Services Cl B 722(b) 1,870 ITC DeltaCom 296(b) 24 Latitude Communications 69(b) 110 Level 3 Communications 1,394(b) 9,842 Liberty Media Cl A 6,095(b) 47,907 McLeodUSA Cl A 161(b) 81 McLeodUSA Cl A Escrow 2,746(b,d) -- Metromedia Fiber Network Cl A 1,037(b) 21 Mpower Holding 100(b) 1 Network Plus 167(b,d) -- Nextel Communications Cl A 1,969(b) 11,282 PanAmSat 320(b) 7,264 Primus Telecommunications Group 99(b) 74 Qwest Communications Intl 4,014(b) 5,138 RCN 357(b) 521 SBC Communications 8,830 244,237 Sprint (FON Group) 2,188 20,458 Sprint (PCS Group) 2,432(b) 9,971 TALK America Holdings 150(b) 494 Telephone & Data Systems 128 7,290 Teligent Cl A 21(b,d) -- United States Cellular 187(b) 4,881 Viatel 208(b,d) -- West 218(b) 3,924 Western Wireless Cl A 149(b) 462 XO Communications Cl A 561(b) 13 Total 658,190 Total common stocks (Cost: $37,282,064) 27,711,549 See accompanying notes to investments in securities.
-------------------------------------------------------------------------------- 57 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP Total Stock Market Index Fund Preferred stock & other (--%) Issuer Shares Value(a) Bank United Rights 60(b) $4 Corrections Corp of America 12.00% Pay-in-kind Series B 6 135 Expedia Warrants 25(b) 557 Focal Communications Warrants 19(b,d) -- Motient Warrants 4(b) 1 Orbital Sciences Warrants 13(b) 19 Sunbeam Warrants 83(b,d) -- Total preferred stock & other (Cost: $4,386) $716 Total investments in securities (Cost: $37,286,450)(e) $27,712,265 Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. As of July 31, 2002, the value of foreign securities represented 0.2% of net assets. (d) Negligible market value. (e) At July 31, 2002, the cost of securities for federal income tax purposes was approximately $ 37,286,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 2,279,000 Unrealized depreciation (11,853,000) ----------- Net unrealized depreciation $ (9,574,000) ------------ -------------------------------------------------------------------------------- 58 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Investments in Securities AXP International Equity Index Fund July 31, 2002 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (94.0%) Issuer Shares Value(a) Australia (3.3%) Banks and savings & loans (1.3%) Australia & New Zealand Banking Group 3,904 $ 38,119 Commonwealth Bank of Australia 3,144 53,337 Macquarie Bank 517 6,812 Macquarie Infrastructure 4,923 7,502 Natl Australia Bank 4,110 74,759 Westfield Trust 133 240 Westpac Banking 4,378 36,338 Total 217,107 Beverages & tobacco (0.1%) Coca-Cola Amatil 2,301 7,890 Foster's Brewing Group 5,384 13,216 Total 21,106 Building materials & construction (0.1%) BHP Steel 1,863(b) 2,778 Boral 1,202 2,545 CSR 2,208 7,668 James Hardie Inds 868(b) 2,787 Leighton Holdings 558 3,304 Transurban Group 955(b) 1,975 Total 21,057 Chemicals (--%) Orica 577 2,830 Communications equipment & services (0.1%) Telstra 9,217 24,129 Computer software & services (--%) Computershare 997 950 Electronics (--%) ERG 1,566 243 Energy (--%) Origin Energy 1,202 2,185 Financial services (0.1%) General Property Trust 3,512 5,333 Lend Lease 1,072 5,934 Suncorp-Metway 974 6,615 Total 17,882 Food (--%) Goodman Fielder 2,933 2,618 Health care (--%) CSL 281 4,359 Health care services (--%) Mayne Nickless 1,528 3,252 Industrial equipment & services (--%) Brambles Inds 1,994 8,747 Insurance (0.2%) AMP 2,794 21,532 Insurance Australia Group 3,660 5,797 QBE Insurance Group 1,082 3,993 Total 31,322 Leisure time & entertainment (--%) Aristocrat Leisure 785 2,320 TABCORP Holdings 649 4,235 Total 6,555 Media (0.4%) John Fairfax 1,942 3,456 News Corp 10,281 47,114 Total 50,570 Metals (0.5%) Broken Hill Proprietary 9,319 48,336 M.I.M. Holdings 3,659 2,450 OneSteel 909 727 Rio Tinto 818 14,728 WMC 2,441 11,120 Total 77,361 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Australia (cont.) Miscellaneous (0.1%) Gandel Retail Trust 2,559 $ 1,769 Mirvac Group 1,085 2,415 Stockland Trust Group 860 1,975 Woodside Petroleum 1,220 8,818 Total 14,977 Multi-industry conglomerates (0.1%) Pacific Dunlop 394 1,426 Southcorp 1,317 3,641 Wesfarmers 760 11,665 Total 16,732 Paper & packaging (--%) Amcor 1,454 6,585 Paperlinx 453 1,220 Total 7,805 Retail (0.3%) Coles Myer 2,701 9,114 Westfield Holdings 1,100 8,681 Westfield Trust 3,643 6,642 Woolworths 2,610 17,232 Total 41,669 Utilities -- gas (--%) Australian Gas Light Co 784 4,109 Santos 1,191 3,974 Total 8,083 Austria (0.2%) Banks and savings & loans (0.1%) Bayerische Hypo-und Vereinsbank 410 8,240 Building materials & construction (--%) Wienerberger Baustoffindustrie 162 2,263 Communications equipment & services (--%) Telekom Austria 366(b) 3,090 Industrial equipment & services (--%) BWT 30 529 Miscellaneous (--%) Flughafen Wien 27 807 Multi-industry conglomerates (--%) VA Technologie 35 686 Paper & packaging (--%) Mayr-Melnhof Karton 21 1,314 Transportation (--%) Austrian Airlines 65 456 Utilities -- electric (0.1%) Oesterreichiesche Elektrizitaetswirtschafts Cl A 110 8,466 Utilities -- gas (--%) OMV 60 5,118 Belgium (1.1%) Automotive & related (--%) D'Ieteren 13 2,281 Banks and savings & loans (0.3%) Fortis 3,382 56,435 KBC Bancassurance Holding 313 11,569 Total 68,004 Beverages & tobacco (0.1%) Interbrew 397 11,167 Chemicals (0.1%) Solvay 200 13,824 Electronics (--%) Barco 28 1,275 Food (0.1%) Colruyt 93 4,194 Delhaize "Le Lion" 250 9,510 Total 13,704 Health care (0.1%) UCB 304 10,494 Leisure time & entertainment (--%) Agfa Gevaert 325 5,296 Metals (--%) Union Miniere 58 2,297 Miscellaneous (0.2%) Dexia 2,231 28,545 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Belgium (cont.) Multi-industry conglomerates (0.1%) Groupe Bruxelles Lambert 330 $ 13,362 Utilities -- electric (0.1%) Electrabel 104 23,992 Wire & cable (--%) Bekaert 51 2,406 Denmark (0.8%) Banks and savings & loans (0.3%) Danske Bank 1,960 35,437 Nordic Baltic Holding 1,501 6,458 Total 41,895 Beverages & tobacco (--%) Carlsberg Cl B 100 4,685 Electronics (--%) Vestas Wind Systems 270 6,343 Food (--%) Danisco 100 3,425 Health care (0.2%) Novo Nordisk Cl B 1,000 23,557 Novozymes Cl B 175 3,499 William Demant 200(b) 4,025 Total 31,081 Industrial equipment & services (--%) FLS Inds Cl B 100 1,121 NKT Holding 100 1,076 Total 2,197 Insurance (--%) Topdanmark 100(b) 2,877 Miscellaneous (0.1%) Group 4 Falck A/S 212 6,183 ISS 100(b) 4,316 Total 10,499 Transportation (0.1%) A/S Dampskibsselskabet Svendborg Cl B 2 18,001 D/S 1912 Cl B 1(b) 6,731 Total 24,732 Utilities -- telephone (0.1%) Tele Danmark 500 12,274 Finland (1.6%) Building materials & construction (--%) Uponor 100 1,784 Communications equipment & services (--%) Sonera 1,900 7,861 Computers & office equipment (--%) Tietoenator 200 3,363 Electronics (1.2%) Nokia 15,278 190,232 Health care (--%) Instrumentarium 200 4,141 Industrial equipment & services (--%) Kone Cl B 120 3,365 Metso 300 3,412 Total 6,777 Insurance (--%) Sampo Insurance Cl A 1,000 6,657 Metals (--%) Outokumpu 500 5,588 Rautaruukki 500 2,108 Total 7,696 Paper & packaging (0.4%) Stora Enso 2,225 25,959 UPM-Kymmene 800 26,118 Total 52,077 Retail (--%) Kesko Cl B 200 1,961 Metra Cl B 100 1,652 Total 3,613 France (8.8%) Aerospace & defense (0.2%) Altran Tech 198 3,242 European Aeronautic Defence & Space 864 13,595 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) France (cont.) Aerospace & defense (cont.) Thomson CSF 205 $ 7,859 Zodiac 110 2,400 Total 27,096 Airlines (--%) Air France 240 3,499 Automotive & related (0.4%) Michelin (CGDE) Cl B 300 11,897 Peugeot Citroen 474 22,939 Renault 470 21,565 Valeo 180 7,167 Total 63,568 Banks and savings & loans (0.9%) BNP Paribas S.A 2,410 110,769 Societe Generale Cl A 906 50,631 Total 161,400 Beverages & tobacco (0.2%) LVMH 672 29,714 Pernod-Ricard 125 10,760 Total 40,474 Building materials & construction (0.6%) Bouygues 524 12,047 Castorama Dubois Investissement 217 14,020 Compagnie de Sanit-Gobain 968 28,927 Imerys 34 4,213 Lafarge 375 33,016 Technip 34 2,427 Vinci 254 14,817 Total 109,467 Chemicals (0.2%) Air Liquide 309 43,382 Communications equipment & services (0.1%) Alcatel 3,408 17,909 Computer software & services (--%) Business Objects 190(b) 3,664 Computers & office equipment (0.1%) Cap Gemini 298 10,215 Dassault Systemes 122 4,155 Societe BIC 120 4,141 Total 18,511 Electronics (0.4%) Sagem 84 5,131 Schneider Electric 623 29,972 STMicroelectronics 1,782 37,580 Total 72,683 Food (0.8%) Carrefour 1,675 72,915 Casino Guichard-Perrachon 85 6,379 Groupe Danone 393 46,005 Sodexho Alliance 340 9,890 Total 135,189 Health care (0.4%) L'Oreal 1,031 72,273 Health care services (1.3%) Aventis 2,063 135,515 Sanofi-Synthelabo 1,228 72,478 Total 207,993 Insurance (0.3%) Axa 4,280 54,677 Leisure time & entertainment (--%) Club Mediterranee 40(b) 1,173 Machinery (--%) Alstom 591 5,464 Media (0.1%) Societe Television Francaise 1 389 9,516 Thomson Multimedia 471(b) 11,050 Total 20,566 Metals (--%) Pechiney Cl A 177 7,280 Miscellaneous (0.4%) Essilor Intl 230 8,569 Publicis Groupe 321 7,333 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) France (cont.) Miscellaneous (cont.) Suez 2,493 $ 54,143 Suez Lyonnaise des Eaux 1,000(b) 10 Unibail 102 6,400 Total 76,455 Multi-industry conglomerates (0.4%) Lagardere S.C.A 406 16,822 Vivendi Universal 2,820 44,955 Total 61,777 Restaurants & lodging (0.1%) Accor 586 19,333 Retail (0.1%) Pinault-Printemps-Redoute 205 17,888 Transportation (--%) Autoroutes du Sud de la France 247(b) 6,248 Utilities -- gas (1.7%) Total Fina Cl B 1,960 283,440 Utilities -- telephone (0.1%) France Telecom 1,232 17,756 Germany (6.6%) Automotive & related (1.0%) Continental 300 5,177 DaimlerChrysler 2,900 124,704 Volkswagen 900 41,604 Total 171,485 Banks and savings & loans (0.7%) Bayer 700 13,966 Deutsche Bank 1,750 99,719 Marschollek, Lautenschlaeger und Partner 84 1,548 Total 115,233 Building materials & construction (--%) Buderus 100 2,064 Heidelberger Zement 100 4,118 Heidelberger Zement 32(b,d) -- Total 6,182 Chemicals (0.7%) BASF 1,700 65,002 Bayer 2,200 54,355 SGL Carbon 100(b) 1,632 Total 120,989 Communications equipment & services (0.4%) Deutsche Telekom 6,837 77,890 Computers & office equipment (0.3%) SAP 635 46,692 Electronics (0.1%) Epcos 142 2,466 Infineon Technologies 1,120(b) 16,031 Total 18,497 Financial services (0.1%) Deutsche Boerse 1,300 20,550 Health care (--%) Altana 100 5,049 Qiagen 307(b) 2,113 Total 7,162 Health care services (0.3%) Fresenius Medical Care 179 6,062 Gehe 233 9,309 Merck 100 1,951 Schering 600 31,889 Total 49,211 Household products (0.1%) Beiersdorf 100 10,294 Insurance (0.8%) Allianz 645 91,883 Muenchener Rueckversicherungs- Gesellschaft 274 52,438 Total 144,321 Miscellaneous (0.1%) Thyssen Krupp 1,500 19,427 WCM Beteiligungs & Grundbesitz 533 1,719 Total 21,146 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Germany (cont.) Multi-industry conglomerates (1.4%) Linde 300 $ 13,965 MAN 300 5,549 Preussag 500 10,638 Siemens 2,600 128,728 Veba 1,900 93,047 Total 251,927 Retail (0.2%) Adidas-Salomon 100 7,647 Douglas Holding 110 2,400 Karstadtquelle 300 6,883 Metro 500 12,255 Total 29,185 Soaps & cosmetics (0.1%) Henkel 192 11,769 Transportation (0.1%) Deutsche Post 1,306 12,932 Utilities -- electric (0.2%) RWE 1,201 39,870 Greece (0.4%) Banks and savings & loans (0.3%) Alpha Bank 620 8,157 Bank of Piraeus 520 3,406 Commercial Bank of Greece 300 6,141 EFG Eurobank Ergasias 600 8,012 Natl Bank of Greece 820 15,082 Total 40,798 Beverages & tobacco (--%) Coca-Cola Hellenic Bottling 420 6,893 Communications equipment & services (0.1%) Hellenic Telecommunications Organization 1,140 15,849 Hong Kong (1.8%) Airlines (--%) Cathay Pacific Airways 3,000 4,654 Banks and savings & loans (0.2%) Bank of East Asia 3,200 6,175 Hang Seng Bank 2,500 27,645 Total 33,820 Computer software & services (--%) PCCW 34,355(b) 7,224 Electronics (--%) ASM Pacific Technology 1,000 2,083 Johnson Electric Holdings 5,000 5,289 Total 7,372 Leisure time & entertainment (--%) Shangri-La Asia 4,000 2,846 Media (--%) Oriental Press Group 800 115 SCMP Group 4,000 1,885 Television Broadcasts 1,000 3,333 Total 5,333 Miscellaneous (0.7%) Cheung Kong 5,000 39,585 Henderson Land Development 2,000 7,923 Hong Kong E&C 4,000 5,795 Hysan Development 2,029 1,873 Li & Fung 8,000 9,590 New World Development 5,000 3,622 Sino Land 8,099 2,778 Sun Hung Kai Properties 4,000 30,001 Wharf 6,000 12,654 Total 113,821 Multi-industry conglomerates (0.5%) Hutchison Whampoa 6,900 50,425 Swire Pacific Cl A 4,000 18,052 Total 68,477 Retail (--%) Esprit Holdings 3,040 5,398 Giordano Intl 4,000 2,013 Total 7,411 Utilities -- electric (0.3%) CLP Holdings 6,600 25,893 Hongkong Electric Holdings 4,500 16,876 Total 42,769 Utilities -- gas (0.1%) Hong Kong & China Gas 15,851 20,526 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Ireland (0.7%) Airlines (--%) Ryanair Holding 1,548(b) $ 5,788 Banks and savings & loans (0.5%) Allied Irish Banks 2,712 32,572 Bank of Ireland 3,264 37,121 Total 69,693 Building materials & construction (0.2%) CRH 1,695 25,343 Computer software & services (--%) IONA Technologies 55(b) 108 Financial services (--%) Irish Life & Permanent 684 8,349 Food (--%) Kerry Group Cl A 406 5,493 Media (--%) Independent News & Media 1,216 1,967 Miscellaneous (--%) Elan 1,030(b) 2,020 Multi-industry conglomerates (--%) DCC 189 1,794 Paper & packaging (--%) Jefferson Smurfit Group 2,555 7,340 Retail (--%) Waterford Wedgwood 1,594 813 Italy (3.8%) Airlines (--%) Alitalia 4,000(b) 1,447 Automotive & related (0.1%) Fiat 1,000 10,245 Pirelli 5,000 4,971 Total 15,216 Banks and savings & loans (0.7%) Banc Nazionale del Lavoro 2,672(b) 3,681 Banca Intesa 13,963 30,349 Banca Monte dei Paschi di Siena 2,500 7,035 Banca Popolare di Milano 680(b) 2,740 Capitalia 4,759 6,625 Fineco 5,099(b) 2,585 San Paolo-IMI 3,400 26,034 UniCredito Italiano 10,000 38,726 Total 117,775 Broker dealers (0.1%) Mediobanca 1,750 14,241 Building materials & construction (--%) Italcementi 520 4,833 Chemicals (--%) Snia 1,300(b) 2,613 Communications equipment & services (0.3%) Sirti 500 522 Telecom Italia Mobile 12,250 54,887 Tiscali 204(b) 1,188 Total 56,597 Food (--%) La Rinascente 1,000 3,186 Parmalot Finanziaria 1,300 3,378 Total 6,564 Health care services (--%) Luxottica Group 400 6,086 Insurance (0.5%) Alleanza Assicurazioni 1,000 7,559 Assicurazioni Generali 3,530 68,767 Riunione Adriatica di Sicurta 1,150 12,865 Total 89,191 Media (0.1%) Gruppo Editoriale L'Espresso 833 3,079 Mediaset 1,900 14,120 Mondadori (Arnoldo) Editore 500 3,044 Seat Pagine Gialle 8,793(b) 5,940 Total 26,183 Restaurants & lodging (0.1%) Autogrill 1,000(b) 9,755 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Italy (cont.) Retail (--%) Bulgari 1,000 $ 4,706 Textiles & apparel (--%) Benetton Group 400 4,247 Transportation (0.2%) Autostrade-Concessioni e Costruzioni Autostrade 3,448 27,990 Utilities -- electric (0.2%) Enel 6,876 32,696 Utilities -- gas (0.9%) ENI 9,100 137,486 Italgas 1,000 9,500 Total 146,986 Utilities -- telephone (0.6%) Telecom Italia 13,000 97,512 Japan (22.4%) Airlines (--%) Japan Airlines 2,000(b) 5,344 Automotive & related (2.2%) Autobacs Seven 100 3,190 Bridgestone 2,000 28,224 Denso 1,500 23,460 Honda Motor 2,000 83,169 Koyo Seiko 1,000 4,568 NGK Spark Plug 1,000 7,156 Nissan Motor 7,000 48,983 Toyota Inds 400 6,046 Toyota Motor 7,400 177,035 Total 381,831 Banks and savings & loans (1.5%) 77 Bank 1,000 3,591 Ashikaga Bank 1,000(b) 1,111 Bank of Fukuoka 2,000 8,350 Bank of Yokohama 3,000 12,576 Chiba Bank 2,000 6,647 Gunma Bank 1,000 4,317 Hokuriku Bank 2,000(b) 2,472 Joyo Bank 2,000 5,294 Mitsubishi Tokyo Financial Group 11 74,584 Mitsui Trust Holdings 2,900 6,902 Mizuho Holdings 17 40,315 Shizuoka Bank 2,000 12,692 Sumitomo Bank 12,000 63,529 Sumitomo Trust & Banking 3,000 14,179 Total 256,559 Beverages & tobacco (0.2%) Asahi Breweries 1,000 8,309 Japan Tobacco 2 13,043 Kirin Brewery 2,000 13,193 Sapporo Breweries 1,000 2,505 Takara Shuzo 1,000 6,288 Total 43,338 Building materials & construction (0.6%) Asahi Glass 3,000 18,288 Daiwa House Inds 2,000 12,208 Kajima 2,000 5,945 Matsushita Electric Works 1,000 6,171 Nippon Sheet Glass 1,000 2,939 Nishimatsu Construction 1,000 3,006 Obayashi 2,000 5,428 Okumura 1,000 3,207 Sekisui House 2,000 15,281 Shimizu 2,000 6,730 Sumitomo Osaka Cement 1,000 1,428 Taiheiyo Cement 2,000 3,774 Taisei 2,000 4,175 Toda 1,000 1,820 Tostem 1,000 15,707 Total 106,107 Chemicals (0.8%) Asahi Chemical Inds 4,000 12,024 Daicel Chemicals Inds 1,000 2,948 Dainippon Ink & Chemicals 2,000 3,824 Denki Kagaku Kogyo Kabushiki Kaisha 1,000 2,714 Ishihara Sangyo Kaisha 1,000(b) 1,470 Kaneka 1,000 6,288 Mitsubishi Chemical 5,000 9,853 Mitsubishi Gas Chemical 1,000 1,687 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Japan (cont.) Chemicals (cont.) Mitsui Chemicals 2,000 $ 9,386 Nippon Shokubai 1,000 4,885 Nitto Denko 400 11,423 Sekisui Chemical 1,000 3,232 Shin-Etsu Chemical 1,200 41,685 Showa Denko K.K 2,000(b) 3,006 Sumitomo Chemical 4,000 15,999 Tosoh 1,000 3,073 Ube Inds 2,000(b) 2,839 Total 136,336 Communications equipment & services (0.5%) Matsushita Communication Industrial 300 10,697 Nippon Telegraph & Telephone 17 69,557 Yamaha 1,000 9,219 Total 89,473 Computer software & services (0.2%) TDK 400 18,036 Trend Micro 500(b) 12,525 Total 30,561 Computers & office equipment (1.1%) Canon 3,000 101,706 CSK 200 6,213 Fuji Soft ABC 100 3,632 Fujitsu 5,000 29,101 Konami 300 6,062 Meitec 100 2,989 RICOH 2,000 32,733 Softbank 900 10,146 Trans Cosmos 100 2,088 Total 194,670 Consumer finance -- personal loans (0.2%) ACOM 230 13,867 Takefuji 230 15,326 Total 29,193 Electronics (3.7%) Advantest 200 10,221 Casio Computer 1,000 6,012 Fanuc 300 13,152 Hirose Electric 100 7,590 Hitachi 9,000 51,855 Kyocera 500 33,735 Mabuchi Motor 100 9,311 Matsushita Electric 6,000 74,500 Minebea 1,000 5,361 Mitsubishi Electric 6,000(b) 22,947 Murata Mfg 700 36,533 NEC 5,000 29,852 NGK Insulators 1,000 7,348 Omron 1,000 14,413 Rohm 300 39,280 Sanyo Electric 5,000 21,001 Sharp 3,000 36,725 Sony 2,700 121,972 Tohoku Electric Power 1,300 18,020 Tokyo Electron 500 25,594 Toshiba 8,000(b) 30,061 Yamada Denki 100 6,931 Yokogawa Electric 1,000 7,307 Total 629,721 Energy (--%) Cosmo Oil 1,000 1,545 Financial services (0.9%) Aiful 150 9,544 Credit Saison 400 9,386 Daiwa Securities Group 4,000 21,477 Nikko Cordial 4,000 16,901 Nomura Securities 6,000 80,213 Orix 220 15,193 Promise 300 13,778 Total 166,492 Food (0.4%) Ajinomoto 2,000 20,375 Katokichi 100 1,599 Kikkoman 1,000 6,388 Meiji Milk Products 1,000 2,680 Meiji Seika Kaisha 1,000 3,298 Nichirei 1,000 3,098 Nippon Meat Packers 1,000 12,108 Nisshin Flour Milling 1,000 7,432 Nissin Food Products 300 5,962 Snow Brand Milk Products 1,000 969 Yamazaki Baking 1,000 5,327 Total 69,236 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Japan (cont.) Health care (--%) Kanebo 1,000(b) $ 1,687 Terumo 500 6,242 Total 7,929 Health care services (1.5%) Banyu Pharmaceutical 400 4,429 Chugai Pharmaceutical 1,000 9,594 Daiichi Pharmaceutical 1,000 16,625 Eisai 700 16,863 Fujisawa Pharmaceutical 1,000 21,044 Kyowa Hakko Kogyo 1,000 5,152 Sankyo 1,000 12,859 Shionogi 1,000 10,070 Taisho Pharmaceutical 1,000 15,281 Takeda Chemical Inds 3,000 124,754 Yamanouchi Pharmaceutical 1,000 25,052 Total 261,723 Household products (0.4%) Kao 2,000 45,092 Shiseido 1,000 12,976 Toto 1,000 4,401 Total 62,469 Industrial equipment & services (0.8%) Amada 1,000 4,760 Ebara 1,000 4,492 Fuji Machine Mfg 100 1,369 Hitachi Zosen 2,000(b) 1,035 Ishikawajima-Harima Heavy Inds 3,000(b) 4,209 Japan Energy 2,000 2,789 JGC 1,000 6,513 Kinden 1,000 4,467 Komatsu 2,000 6,647 Kubota 4,000 12,125 Marubeni 3,000 3,181 Mitsubishi Heavy Inds 9,000(b) 24,125 Mitsui Engineering & Shipbuilding 2,000(b) 2,255 Nidec 100 5,845 Nippon Mitsubishi Oil 4,000 17,870 Nkk . 9,000(b) 8,192 SMC 200 20,475 Sumitomo Heavy Inds 1,000(b) 977 THK 300 5,110 Total 136,436 Industrial transportation (0.7%) Central Japan Railway 3 18,062 East Japan Railway 10 46,761 Kamigumi 1,000 4,100 Nippon Express 3,000 15,031 Tobu Railway 2,000(b) 5,361 Tokyu 3,000 11,423 Yamato Transport 1,000 17,619 Total 118,357 Insurance (0.4%) Millea Holding 4(b) 31,397 Mitsui Marine & Fire Insurance 4,180 20,035 Yasuda Fire And Marine Insurance 2,000 11,941 Total 63,373 Leisure time & entertainment (0.3%) Namco 100 1,655 Nintendo 300 37,577 Oriental Land 100 6,998 Sega Enterprises 300(b) 6,563 Toho 400 4,452 Total 57,245 Media (0.2%) Asatsu-Dk 100 1,975 Dai Nippon Printing 2,000 22,679 Fuji Television Network 1 5,737 Total 30,391 Metals (0.3%) Kawasaki Steel 7,000 8,476 Mitsubishi Materials 3,000 5,035 Mitsui Mining & Smelting 1,000 2,973 Nippon Steel 17,000 24,557 NSK 1,000 3,566 NTN 1,000 3,616 Sumitomo Metal Inds 2,000 8,617 Sumitomo Metal Mining 8,000(b) 3,474 Total 60,314 Miscellaneous (2.4%) Benesse 300 5,286 Daito Trust Construction 300 5,987 Daiwa Bank Holdings 12,000(b) 9,119 Fuji Photo Film 1,000 30,980 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Japan (cont.) Miscellaneous (cont.) Hoya 300 $ 19,039 Itochu 4,000 12,191 JSR 1,000 7,515 Konica 1,000 6,046 Mitsubishi 3,000 18,563 Mitsubishi Estate 3,000 23,924 Mitsui Fudosan 2,000 15,648 Nikon 1,000(b) 9,260 Nippon Suisan Kaisha 1,000 1,603 NTT Data 4 15,832 NTT DoCoMo 55(b) 122,624 Olympus Optical 1,000 13,219 PIONEER 500(b) 8,559 Sanrio 200 1,587 Secom 500 23,882 Shimano 300 4,309 Sumitomo 2,000 10,772 TonenGeneral Sekiyu 1,000 5,870 Toppan Printing 2,000 17,552 UFJ Holdings 10(b) 24,633 World 150 4,058 Total 418,058 Multi-industry conglomerates (0.2%) Kawasaki Heavy Inds 3,000(b) 3,407 Keyence 100 18,763 Mitsui 4,000 21,644 Total 43,814 Paper & packaging (0.2%) Mitsubishi Paper Mills 1,000(b) 1,253 Nippon Unipac Holding 3 15,806 Oji Paper 3,000 14,604 Uni-Charm 200 7,148 Total 38,811 Real estate investment trust (--%) Sumitomo Realty & Development 1,000 6,213 Restaurants & lodging (--%) Skylark 300 6,651 Retail (1.0%) Aoyamma Trading 200 2,240 Citizen Watch 1,000 6,680 Daiei 1,000(b) 1,854 Daimaru 1,000 4,175 FamilyMart 200 4,476 Hankyu Dept Store 1,000 6,973 Isetan 1,000 8,876 Ito-Yokado 1,000 46,011 Jusco 1,000 27,639 Lawson 200 5,595 Marui 1,000 11,515 Mitsukoshi 1,000 2,889 Seiyu 1,000(b) 3,014 Seven-Eleven 1,000 37,576 Shimachu 100 1,716 Shimamura 100 7,315 Takashimaya 1,000 5,553 Total 184,097 Textiles & apparel (0.2%) Gunze 1,000 4,267 Kuraray 1,000 6,714 Mitsubishi Rayon 2,000 5,929 Nisshinbo Inds 1,000 4,659 Teijin 2,000 6,864 Toray Inds 4,000 10,154 Toyobo 2,000 3,140 Total 41,727 Transportation (0.3%) Kawasaki Kisen Kaisha 1,000 1,328 Keihin Electric Express Railway 1,000 4,568 Keio Electric Railway 1,000 5,010 Kinki Nippon Railway 4,120(b) 12,384 Mitsui O.S.K. Lines 2,000 4,092 Nippon Yusen Kabushiki Kaisha 3,000 9,645 West Japan Railway 3 11,473 Total 48,500 Utilities -- electric (0.9%) Chubu Electric Power 2,000 36,073 Kansai Electric Power 2,100 32,213 Kyushu Electric Power 1,200 17,435 Tokyo Electric Power 3,800 77,265 Total 162,986 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Japan (cont.) Utilities -- gas (0.2%) Osaka Gas 6,000 $ 14,079 Showa Shell Sekiyu 1,000 5,436 Teikoku Oil 1,000 3,708 Tokyo Gas 7,000 18,119 Total 41,342 Wire & cable (0.1%) Fujikura 1,000 3,298 Furukawa Electric 2,000 6,196 Sumitomo Electric Inds 2,000 12,626 Total 22,120 Luxembourg (0.1%) Metals Arcelor 957(b) 12,104 Netherlands (5.7%) Airlines (--%) KLM 131 1,516 Banks and savings & loans (0.4%) ABN AMRO Holding 4,422 62,864 Beverages & tobacco (0.2%) Heineken 865 35,407 Chemicals (0.2%) Akzo Nobel 863 30,620 Communications equipment & services (0.2%) KPN 5,728 26,844 Computer software & services (--%) Getronics 808(b) 1,141 Computers & office equipment (--%) Oce 197 2,194 Electronics (0.6%) ASM Lithography Holding 1,326(b) 16,250 Koninklijke (Royal) Philips Electronics 4,188 94,849 Total 111,099 Food (0.9%) Koninklijke Ahold 2,524 42,216 Koninklijke Numico 468 8,695 Unilever 1,878 106,239 Total 157,150 Insurance (0.9%) Aegon 2,942 40,901 ING Groep 5,564 120,557 Total 161,458 Media (0.3%) Elsevier 1,847 22,726 VNU 704 15,951 Wolters Kluwer 865 13,221 Total 51,898 Miscellaneous (--%) Buhrmann 232 1,660 Vedior 233 2,671 Total 4,331 Multi-industry conglomerates (--%) Hagemeyer 253 2,572 Retail (--%) Royal Vendex KBB 231 2,208 Transportation (0.1%) IHC Caland 65 3,409 TNT Post Group 1,147 21,232 Total 24,641 Utilities -- gas (1.9%) Royal Dutch Petroleum 6,986 319,173 New Zealand (0.1%) Communications equipment & services (0.1%) Telecom Corp of New Zealand 3,018 6,665 Miscellaneous (--%) Auckland Intl Airport 691 1,360 Rubicon 565(b) 191 Total 1,551 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) New Zealand (cont.) Paper & packaging (--%) Carter Holt Harvey 4,053 $ 3,497 Retail (--%) Warehouse Group 474 1,562 Utilities -- electric (--%) Contact Energy 1,411 2,514 Norway (0.6%) Airlines (--%) SAS 135(b) 886 Banks and savings & loans (0.2%) DNB Holding 3,100 15,666 Gjensidige NOR Sparebank 164 5,317 Total 20,983 Communications equipment & services (--%) Telenor 1,186 4,203 Computers & office equipment (--%) Merkantildata 300(b) 150 Energy (0.2%) Skogindustrier 537 22,203 Smedvig Cl A 270 1,719 Total 23,922 Energy equipment & services (--%) Petroleum Geo-Services 200(b) 138 Industrial equipment & services (--%) Kvaerner 673(b) 561 Insurance (--%) Storebrand 600(b) 2,245 Media (--%) Schibsted 200 2,179 Metals (--%) Elkem 135 3,012 Miscellaneous (0.1%) Statoil 1,702 14,075 Tomra Systems 400 3,255 Total 17,330 Multi-industry conglomerates (0.1%) Orkla 835 14,523 Paper & packaging (--%) Norske Skotindustrier 250 3,938 Transportation (--%) Bergesen d.y. Cl A 135 2,729 Bergesen d.y. Cl B 35 625 Total 3,354 Portugal (0.5%) Banks and savings & loans (0.1%) Banco Comercial Portugues 5,594 16,234 Banco Espirito Santo 733 8,099 Total 24,333 Building materials & construction (--%) Cimpor-Cimentos de Portugal 148 2,634 Financial services (--%) BPI 1,720 3,963 Food (--%) Jeronimo Martins 200(b) 1,247 Miscellaneous (0.1%) Brisa-Auto Estradas de Portugal 1,750 8,836 Retail (--%) Sonae 5,779(b) 2,946 Utilities -- electric (0.1%) EDP-Electricidade de Portugal 8,755 15,365 Utilities -- telephone (0.2%) Portugal Telecom 4,139 25,159 Singapore (1.0%) Airlines (0.1%) Singapore Airlines 3,000 21,281 Automotive & related (--%) Cycle & Carriage 1,006 2,489 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Singapore (cont.) Banks and savings & loans (0.5%) DBS Group Holdings 4,000 $ 27,240 Oversea-Chinese Banking 4,000 25,878 United Overseas Bank 3,112 22,782 Total 75,900 Beverages & tobacco (--%) Fraser & Neave 900 3,984 Communications equipment & services (0.1%) Singapore Telecommunications 15,000 11,747 Electronics (0.1%) Chartered Semiconductor Mfg 3,000(b) 4,971 Venture Mfg 1,000 6,697 Total 11,668 Health care services (--%) Parkway Holdings 2,000 959 Industrial equipment & services (--%) Singapore Technologies Engineering 7,000 7,548 Leisure time & entertainment (--%) Hotel Properties 1,000 624 Media (0.1%) Singapore Press Holdings 1,000 10,499 Miscellaneous (0.1%) Capitaland 6,000(b) 5,210 City Developments 2,000 6,639 First Capital 1,000 536 United Overseas Land 1,000 999 Wing Tai Holdings 2,000 846 Total 14,230 Multi-industry conglomerates (--%) Keppel 2,000 5,062 Sembcorp Inds 4,000 3,178 Total 8,240 Transportation (--%) Comfort Group 1,500 638 Neptune Orient Lines 3,000(b) 1,439 Total 2,077 Spain (3.0%) Banks and savings & loans (1.1%) Banco Bilbao Vizcaya Argentaria 9,860 93,286 Banco Santander Central Hispano 13,324 82,036 Corporacion Mapfre 426 2,882 Total 178,204 Beverages & tobacco (0.1%) Altadis 864 17,111 Building materials & construction (0.1%) ACS, Actividades de Construccion y Servicios 129 3,907 Acesa Infraestructuras 686 7,600 Fomento de Construcciones y Contractas 283 6,298 Grupo Dragados 405 6,572 Total 24,377 Communications equipment & services (0.8%) Telefonica 14,247 125,713 Computer software & services (--%) Terra Networks 575(b) 3,433 Food (--%) Azucarera Ebro Agricolas 51 525 Health care (--%) Zeltia 483 3,253 Metals (--%) Acerinox 138 5,649 Miscellaneous (--%) Metrovacesa 128 2,510 Puleva Biotech 34 108 Vallehermoso 304 2,474 Total 5,092 Multi-industry conglomerates (0.3%) Aguas de Barcelona 331 3,252 Repsol-YPF 3,602 43,825 Total 47,077 Restaurants & lodging (--%) Sol Melia 404 2,365 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Spain (cont.) Retail (0.1%) Industria de Diseno Textil 632 $ 12,393 TelePizza 505(b) 495 Total 12,888 Utilities -- electric (0.4%) Endesa 3,103 34,560 Iberdrola 2,660 31,712 Union Electrica Fenosa 717 9,392 Total 75,664 Utilities -- gas (0.1%) Gas Natural SDG Cl E 1,054 17,929 Sweden (1.6%) Automotive & related (0.1%) Volvo Cl A 300 5,238 Volvo Cl B 700 12,846 Total 18,084 Banks and savings & loans (0.5%) Nordic Baltic Holding 4,699 20,756 Skandinaviska Enskilda Banker Cl A 1,720 15,376 Svenska Handelsbanken Cl A 1,900 25,578 Svenska Handelsbanken Cl B 100 1,299 Total 63,009 Beverages & tobacco (--%) Swedish Match 743 5,626 Building materials & construction (--%) Skanskia Forsakrings 1,200 7,131 Communications equipment & services (0.3%) Ericsson (LM) Cl B 23,500(b) 23,726 NetCom Cl B 350(b) 6,718 Telia 4,400 12,263 Total 42,707 Computer software & services (--%) WM-Data Cl B 1,000 1,630 Financial services (--%) OM Gruppen 200 1,188 Furniture & appliances (0.1%) Electrolux Series B 800 14,766 Health care (--%) Gambro Cl A 500 2,619 Gambro Cl B 200 1,062 Total 3,681 Industrial equipment & services (0.1%) Atlas Copco Cl A 300 6,342 Atlas Copco Cl B 100 2,077 Sandvik 600 13,756 Total 22,175 Insurance (--%) Skandia Forsakrings 3,000 8,266 Media (--%) Modern Times Group Cl B 159(b) 1,505 Metals (0.1%) Assa Abloy Cl B 800 9,255 SAPA 100 1,819 SKF Cl A 100 2,603 SKF Cl B 100 2,619 SSAB Svenskt Stal Series A 200 2,261 Total 18,557 Miscellaneous (0.1%) Diligentia 200(b,d) -- Drott Cl B 300 3,202 Securitas Cl B 1,000 17,511 Total 20,713 Multi-industry conglomerates (--%) Trelleborg Cl B 200 1,862 Paper & packaging (0.1%) Billerud 92 847 Svenska Cellulosa Cl B 500 16,721 Total 17,568 Retail (0.2%) Hennes & Mauritz Cl B 1,375 25,234 Switzerland (8.1%) Banks and savings & loans (1.5%) Credit Suisse Group 3,450(b) 82,648 UBS 4,016(b) 176,967 Total 259,615 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) Switzerland (cont.) Building materials & construction (0.1%) Holcim Cl B 100(b) $ 19,232 Chemicals (0.3%) Ciba Specialty Chemicals 214 14,802 Clariant 211 4,030 Lonza Group 200 12,889 Syngenta 347 17,702 Total 49,423 Communications equipment & services (0.2%) Ascom Holding Cl R 56(b) 283 Kudelski 116(b) 3,014 Swisscom 86 25,042 Total 28,339 Computers & office equipment (--%) Logitech International 127(b) 5,228 Electronics (0.1%) ABB 3,640(b) 19,455 Unaxis Holding 32(b) 3,174 Total 22,629 Food (1.6%) Nestle 1,285(b) 276,185 Health care (3.2%) Givaudan 22 8,833 Novartis 8,883(b) 361,764 Roche Holding 2,073(b) 147,585 Roche Holding 357 39,509 Synthes - Stratec 7 3,755 Total 561,446 Industrial equipment & services (--%) Fischer (Georg) 10 1,687 Sulzer 10(b) 1,910 Sulzer Medica 20(b) 2,483 Total 6,080 Insurance (0.2%) Zurich Financial Services 272 29,735 Leisure time & entertainment (--%) Kuoni Reisen 16(b) 3,531 Media (--%) PubliGroupe 6(b) 1,122 Miscellaneous (0.6%) Adecco 391(b) 17,784 Serono 23(b) 12,029 SGS Societe Generale de Surveillance Holding 10(b) 2,821 Swiss Re 953(b) 79,744 Total 112,378 Retail (0.3%) Compagnie Financiere Richemont 1,694(b) 31,208 Swatch Group 500(b) 15,470 Valora Holding 10 1,923 Total 48,601 United Kingdom (25.0%) Aerospace & defense (0.3%) BAE Systems 9,001 41,903 Rolls-Royce 4,279 9,776 Serco Group 1,306 3,366 Total 55,045 Airlines (--%) British Airways 2,538 6,344 Automotive & related (--%) GKN 1,674 7,054 Banks and savings & loans (5.4%) Barclays 19,584 149,606 HBOS 11,016 123,907 HSBC Holdings 27,532 316,128 Lloyds TSB Group 16,383 163,671 Royal Bank of Scotland Group 8,010 210,223 Total 963,535 Beverages & tobacco (1.6%) British American Tobacco 5,655 63,518 Cadbury Schweppes 6,056 41,958 Diageo 9,522 115,433 Imperial Tobacco Group 2,152 32,946 Scottish & Newcastle 2,295 20,723 Total 274,578 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) United Kingdom (cont.) Building materials & construction (0.4%) AMEC 478 $ 2,315 Balfour Beatty 935 2,790 Barratt Developments 509 2,831 Berkeley Group (The) 276 2,544 BPB 1,459 6,496 Hanson 1,845 11,299 Kingfisher 3592 10,858 Pilkington 2,433 2,965 RMC Group 569 4,729 Taylor Woodrow 879 2,115 Wimpey (George) 813 3,143 Wolseley 1,725 15,440 Total 67,525 Chemicals (0.2%) BOC Group 1,364 19,113 Imperial Chemical Inds 2,816 13,220 Total 32,333 Communications equipment & services (2.5%) BT Group 25,539 80,393 BTG 246(b) 907 Cable & Wireless 6,694 18,144 Natl Grid Group 4,884 33,705 Spirent 2,418 2,833 Vodafone AirTouch 200,584 303,952 Total 439,934 Computer software & services (0.1%) CMG 1,419 1,652 Logica 1,051 3,349 Misys 1,305 4,811 Sage Group (The) 3,029 6,318 Thus Group 2,675 428 Total 16,558 Electronics (0.1%) ARM Holdings 2,222(b) 5,120 Chubb 1,717 3,541 Electrocomponents 1,019 4,999 FKI 1,243 2,136 Invensys 8,574 9,007 Marconi 6,498(b) 356 Total 25,159 Energy (2.9%) BP 66,055 512,862 Financial services (0.3%) Amvescap 2,024 15,303 Close Brothers Group 432 3,054 Man Group 716 11,868 Provident Financial 573 5,210 Schroders 699 5,951 Securicor 1,939 2,666 Total 44,052 Food (0.7%) Compass Group 6,585 32,456 Safeway 3,123 11,624 Tate & Lyle 996 4,901 Unilever 8,105 71,222 Uniq 263 572 Total 120,775 Health care (0.1%) Smith & Nephew 2,150 11,285 Health care services (3.2%) Amersham 2,071 17,503 AstraZeneca 5,130 183,523 GlaxoSmithKline 18,091 351,295 SSL Intl 402 1,853 Total 554,174 Industrial equipment & services (0.1%) BBA Group 966 3,577 Smiths Group 1,631 19,746 Total 23,323 Insurance (0.7%) Aviva 6,274 41,655 Legal & General Group 13,721 25,025 Prudential 5,591 42,930 Royal & Sun Alliance Group 4,262 11,452 Total 121,062 Leisure time & entertainment (0.4%) Carlton Communications 1,453 4,086 EMI Group 1,800 6,207 Hilton Group 4,416 13,590 MyTravel Group 1,124 2,564 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) United Kingdom (cont.) Leisure time & entertainment (cont.) P & O Pricess Cruises 2,082 $ 14,246 Rank Group 1,688 6,223 Six Continents 2,376 22,753 Total 69,669 Media (0.8%) Aegis Group 3,308 4,147 British Sky Broadcasting Group 3,797(b) 35,530 Daily Mail & General Trust Cl A 906 7,784 Pearson 2,130 20,464 Reed Elsevier 3,489 29,978 Reuters Group 3,710 15,823 United Business Media 999 4,807 WPP Group 3,406 25,806 Total 144,339 Metals (0.3%) Corus Group 7,377(b) 6,915 Rio Tinto 2,964 50,934 Total 57,849 Miscellaneous (1.1%) 3i Group 1,710 15,641 AWG 594 4,487 BHP Billiton 6,918 32,745 British Land 1,218 10,427 Canary Wharf Group 1,609(b) 10,570 Capita Group 1,500 6,866 Celltech Group 615(b) 3,843 De La Rue 418 1,943 Granada 6,738 10,026 Great Portland Estates 494 1,802 Hammerson 629 5,493 Kelda Group 1,174 7,024 Kidde 1,717 1,824 Land Securities 1,561 19,997 Reckitt Benckiser 1,591 27,092 Severn Trent 1,019 9,902 Slough Estates 897 4,582 United Utilities 1,301 11,727 Total 185,991 Multi-industry conglomerates (0.2%) Hays 4,052 8,134 IMI 764 3,378 Johnson Matthey 476 6,566 Novar 1,018 2,075 Rentokil Initial 5,118 18,570 Total 38,723 Paper & packaging (0.1%) Bunzl 992 6,974 Rexam 862 5,548 Total 12,522 Restaurants & lodging (--%) Whitbread 878 7,132 Retail (1.2%) Boots 2,526 22,138 Dixons Group 5,004 12,762 GUS 2,778 21,113 Kingfisher Plc New 3,592(b) 10,381 Marks & Spencer Group 6,227 33,075 Next 980 13,220 Sainsbury (J) 4,514 22,495 Signet Group 5,047 6,406 Tesco 20,614 70,444 Total 212,034 Transportation (0.3%) Associated British Ports Holdings 979 6,041 BAA 2,917 22,761 Brambles Inds 1,877 7,419 Exel 698 8,211 FirstGroup 1,259 4,681 Peninsular & Oriental Steam Navigation 1,520 5,082 Railtrack Group 1,198(d) -- Stagecoach Group 3,754 2,067 Total 56,262 Utilities -- electric (0.3%) Intl Power 2,704(b) 4,995 Scottish & Southern Energy 2,540 25,594 ScottishPower 4,978 27,218 Total 57,807 See accompanying notes to investments in securities.
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AXP International Equity Index Fund Common stocks (continued) Issuer Shares Value(a) United Kingdom (cont.) Utilities -- gas (1.7%) BG Group 10,406 $ 43,120 Centrica 12,454 31,616 Lattice Group 9,686 24,891 Shell Transport & Trading 28,710 195,549 Total 295,176 United States (--%) Metals Newmont Mining 1,448 3,531 Total common stocks (Cost: $24,447,435) 17,071,286 Preferred stocks & other (0.1%) Issuer Shares Value(a) Denmark (--%) Porsche 12(b) 5,243 France (--%) Casino Cl B Warrants 15(b) 33 -- -- Germany (0.1%) Dyckerhoff 128(b) 1,586 Hugo Boss 149(b) 1,562 ProSieben Sat.1 Media 357(b) 3,045 RWE 200(b) 5,471 Volkswagen 200(b) 6,593 Total 18,257 Hong Kong (--%) QPL Intl Holdings Warrants 200(b) 5 Italy (--%) Fiat 210(b) 1,324 United Kingdom (--%) TI Automotive Cl A 1,190(b,d) -- Total preferred stocks & other (Cost: $40,114) $24,862
Bond (--%) Issuer Coupon Principal Value(a) rate amount Australia AMP (Australian Dollar) 12-20-49 5.95% 3,600 1,783 Total bond (Cost: $2,604) 1,783 Short-term security (2.6%) Issuer Rate Shares Value(a) Investment Company Bank of New York Cash Reserve Fund 2.56% 465,466(c) $465,466 Total short-term security (Cost: $465,466) $465,466 Total investments in securities (Cost: $24,955,619)(e) $17,563,397 See accompanying notes to investments in securities. -------------------------------------------------------------------------------- 77 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP International Equity Index Fund Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements. Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in the currency indicated (b) Non-income producing. (c) Partially pledged as initial margin deposit on the following open stock index futures contracts (see Note 5 to the financial statements): Type of security Contracts Purchase contracts CAC 40 4 FTSE 100 10 Nikkei 300 2 OMX 100 5 SPI 200 5 (d) Negligible market value. (e) At July 31, 2002, the cost of securities for federal income tax purposes was approximately $24,956,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 584,000 Unrealized depreciation (7,977,000) ---------- Net unrealized depreciation $(7,393,000) ----------- -------------------------------------------------------------------------------- 78 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Investments in Securities AXP Nasdaq 100 Index Fund July 31, 2002 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (97.8%) Issuer Shares Value(a) Automotive & related (0.7%) PACCAR 3,193 $ 122,452 Chemicals (0.5%) Sigma-Aldrich 1,730 82,902 Communications equipment & services (6.0%) ADC Telecommunications 24,454(b) 44,017 Broadcom Cl A 4,378(b) 82,131 CIENA 12,581(b) 50,701 EchoStar Communications Cl A 6,137(b) 100,094 Ericsson (LM) ADR Cl B 22,481(c) 21,582 JDS Uniphase 35,266(b) 89,223 QUALCOMM 22,835(b) 627,507 RF Micro Devices 4,691(b) 31,242 Tellabs 5,761(b) 33,011 Total 1,079,508 Computer software & services (23.0%) Adobe Systems 5,738 137,482 Brocade Communications Systems 5,842(b) 109,538 Check Point Software Technologies 5,901(b,c) 99,019 Electronic Arts 3,420(b) 205,816 i2 Technologies 11,279(b) 9,587 Intuit 6,557(b) 288,377 Microsoft 45,849(b) 2,198,459 Oracle 56,324(b) 563,747 PeopleSoft 10,793(b) 194,058 VeriSign 5,483(b) 35,091 VERITAS Software 10,290(b,d) 173,181 Yahoo! 7,071(b) 93,125 Total 4,107,480 Computers & office equipment (17.5%) Apple Computer 12,204(b) 186,233 BEA Systems 9,256(b) 51,371 Cisco Systems 64,303(b) 848,157 Citrix Systems 5,320(b) 29,313 Compuware 5,666(b) 21,021 Comverse Technology 4,773(b) 37,993 Concord EFS 14,166(b) 276,237 Dell Computer 23,478(b) 585,307 Fiserv 5,884(b) 202,468 Gemstar-TV Guide Intl 10,697(b) 40,328 Juniper Networks 5,951(b) 47,608 Mercury Interactive 2,192(b) 56,159 Network Appliance 8,587(b) 72,646 NVIDIA 4,041(b) 44,734 QLogic 2,331(b) 94,988 Rational Software 4,997(b) 33,580 Sanmina-SCI 13,763(b) 56,015 Siebel Systems 13,647(b) 128,282 Sun Microsystems 34,738(b) 136,173 Symantec 3,658(b) 122,689 Synopsys 1,725(b) 73,778 Total 3,145,080 Electronics (17.8%) Altera 13,293(b) 157,256 Applied Materials 20,928(b) 311,199 Applied Micro Circuits 8,586(b) 39,581 Atmel 8,626(b) 27,086 Conexant Systems 7,021(b) 14,253 Flextronics Intl 13,693(b,c) 108,449 Integrated Device Technology 2,440(b) 31,232 Intel 57,576 1,081,852 KLA-Tencor 5,637(b) 222,041 Linear Technology 10,435 282,580 Maxim Integrated Products 11,132(b) 391,624 Microchip Technology 4,104(b) 90,370 Molex 2,403 70,120 Novellus Systems 3,641(b) 98,271 PMC-Sierra 4,513(b) 43,099 Vitesse Semiconductor 5,352(b) 12,952 Xilinx 10,949(b) 210,111 Total 3,192,076 Financial services (1.3%) Paychex 8,753 230,291 See accompanying notes to investments in securities.
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AXP Nasdaq 100 Index Fund Common stocks (continued) Issuer Shares Value(a) Health care (13.0%) Amgen 14,698(b) $ 670,816 Andrx Group 1,708(b) 37,901 Biogen 4,490(b) 161,505 Biomet 8,876 230,155 Cephalon 1,241(b) 59,568 Chiron 6,538(b) 220,592 Genzyme-General Division 6,596(b) 150,257 Gilead Sciences 4,721(b) 143,849 Human Genome Sciences 3,144(b) 54,486 ICOS 1,442(b) 35,270 IDEC Pharmaceuticals 4,070(b) 181,481 ImClone Systems 1,851(b) 13,161 Invitrogen 1,228(b) 42,796 MedImmune 6,584(b) 195,808 Millennium Pharmaceuticals 7,603(b) 94,429 Protein Design Labs 2,099(b) 28,525 Sepracor 2,081(b) 14,047 Total 2,334,646 Health care services (1.2%) Abgenix 2,036(b) 18,772 Cytyc 3,182(b) 27,397 Express Scripts Cl A 1,752(b) 91,104 Lincare Holdings 2,551(b) 80,050 Total 217,323 Indexes (1.6%) Nasdaq-100 Index Tracking 12,270(b) 293,008 Industrial equipment & services (1.2%) Cintas 5,014 220,059 Media (5.6%) Apollo Group Cl A 4,301(b) 168,814 Charter Communications Cl A 7,525(b) 27,090 Comcast Cl A 11,051(b) 230,966 eBay 5,140(b) 293,442 TMP Worldwide 2,940(b) 45,394 USA Interactive 10,776(b) 237,600 Total 1,003,306 Paper & packaging (0.5%) Smurfit-Stone Container 5,894(b) 84,991 Restaurants & lodging (1.4%) Starbucks 13,204(b) 259,195 Retail (5.1%) Amazon.com 6,127(b) 88,590 Bed Bath & Beyond 9,657(b) 299,368 CDW Computer Centers 2,201(b) 105,208 Costco Wholesale 5,883(b) 205,140 Dollar Tree Stores 2,689(b) 83,887 Staples 7,725(b) 128,930 Total 911,123 Utilities -- telephone (1.4%) Nextel Communications Cl A 24,688(b) 141,462 PanAmSat 4,971(b) 112,842 Total 254,304 Total common stocks (Cost: $44,823,508) $17,537,744 -----------
Short-term security (1.7%) Issuer Annualized Amount Value(a) yield on date payable at of purchase maturity U.S. government agency Federal Natl Mtge Assn Disc Nt 08-21-02 1.71% $300,000 $299,701 Total short-term security (Cost: $299,715) $299,701 Total investments in securities (Cost: $45,123,223)(e) $17,837,445 See accompanying notes to investments in securities.
-------------------------------------------------------------------------------- 80 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP Nasdaq 100 Index Fund Notes to investments in securities (a) Securities are valued by procedures described in Note 1 to the financial statements. (b) Non-income producing. (c) Foreign security values are stated in U.S. dollars. As of July 31, 2002, the value of foreign securities represented 1.3% of net assets. (d) Partially pledged as initial margin deposit on the following open stock index futures contracts (see Note 5 to the financial statements): Type of security Contracts Purchase contracts Nasdaq 100, July 2002 22 (e) At July 31, 2002, the cost of securities for federal income tax purposes was approximately $45,123,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 362,000 Unrealized depreciation (27,648,000) ----------- Net unrealized depreciation $(27,286,000) ------------ -------------------------------------------------------------------------------- 81 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Financial Statements Statements of assets and liabilities AXP Market Advantage Series, Inc. AXP AXP AXP S&P 500 Mid Cap Total Index Index Stock Market July 31, 2002 (Unaudited) Fund Fund Index Fund Assets Investments in securities, at value (Note 1) (identified cost $327,706,576, $31,103,612 and $37,286,450) $257,640,087 $27,428,805 $27,712,265 Cash in bank on demand deposit 12,677 76,578 28,529 Capital shares receivable 649,016 74,697 54,410 Dividends and accrued interest receivable 253,546 19,251 25,672 Receivable for investment securities sold 31,219 138,594 78,559 ------ ------- ------ Total assets 258,586,545 27,737,925 27,899,435 ------ ------- ------ Liabilities Capital shares payable 52,919 7,617 2,256 Payable for investment securities purchased 78,367 270,767 137,398 Accrued investment management services fee 1,678 195 226 Accrued distribution fee 256 94 67 Accrued transfer agency fee 1,547 74 37 Accrued administrative services fee 559 60 83 Other accrued expenses 126,106 41,047 56,563 ------ ------- ------ Total liabilities 261,432 319,854 196,630 ------ ------- ------ Net assets applicable to outstanding capital stock $258,325,113 $27,418,071 $27,702,805 ------ ------- ------ Represented by Capital stock -- $.01 par value (Note 1) $ 727,413 $ 54,561 $ 74,824 Additional paid-in capital 333,198,452 30,536,719 37,793,710 Undistributed net investment income 1,800,564 71,882 203,807 Accumulated net realized gain (loss) (Note 8) (7,271,522) 429,716 (795,351) Unrealized appreciation (depreciation) on investments (Note 5) (70,129,794) (3,674,807) (9,574,185) ----------- ---------- ---------- Total -- representing net assets applicable to outstanding capital stock $258,325,113 $27,418,071 $27,702,805 ------------ ----------- ----------- Net assets applicable to outstanding shares: Class D $ 38,038,518 $13,787,106 $ 9,860,348 Class E $220,286,595 $13,630,965 $17,842,457 Shares outstanding: Class D shares 10,742,690 2,747,372 2,666,152 Class E shares 61,998,642 2,708,712 4,816,268 Net asset value per share of outstanding capital stock: Class D $ 3.54 $ 5.02 $ 3.70 Class E $ 3.55 $ 5.03 $ 3.70
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 82 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Statements of assets and liabilities AXP Market Advantage Series, Inc. AXP AXP International Nasdaq Equity 100 July 31, 2002 (Unaudited) Index Fund Index Fund Assets Investments in securities, at value (Note 1) Assets Investments in securities, at value (Note 1) (identified cost $24,955,619 and $45,123,223) $17,563,397 $17,837,445 Cash in bank on demand deposit (including foreign currency holdings of $405,804 for AXP International Equity Index Fund) 442,210 215,943 Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 6) 9,816 -- Expense reimbursement receivable from AEFC 100 -- Capital shares receivable 29,250 92,959 Dividends and accrued interest receivable 43,592 1,485 Receivable for investment securities sold 223,994 -- ------- ------- Total assets 18,312,359 18,147,832 ---------- ---------- Liabilities Capital shares payable -- 4,384 Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 6) 2,083 -- Payable for investment securities purchased 59,491 168,795 Accrued investment management services fee 1,395 189 Accrued distribution fee 3,418 64 Accrued transfer agency fee -- 285 Accrued administrative services fee -- 30 Other accrued expenses 90,772 43,550 ------ ------ Total liabilities 157,159 217,297 ------- ------- Net assets applicable to outstanding capital stock $18,155,200 $17,930,535 ---------- ---------- Represented by Capital stock -- $.01 par value (Note 1) $ 54,742 $ 92,806 Additional paid-in capital 26,437,076 56,392,300 Undistributed net investment income (loss) 198,094 (75,134) Accumulated net realized gain (loss) (Note 8) (1,064,980) (11,177,291) Unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies (Note 5 and 6) (7,469,732) (27,302,146) ---------- ----------- Total -- representing net assets applicable to outstanding capital stock $18,155,200 $17,930,535 =========== =========== Net assets applicable to outstanding shares: Class D $ 7,517,472 $ 9,230,804 Class E $10,637,728 $ 8,699,731 Shares outstanding: Class D shares 2,271,306 4,793,868 Class E shares 3,202,920 4,486,780 Net asset value per share of outstanding capital stock: Class D $ 3.31 $ 1.93 Class E $ 3.32 $ 1.94
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 83 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Statements of operations AXP Market Advantage Series, Inc. AXP AXP AXP S&P 500 Mid Cap Total Index Index Stock Market Six months ended July 31, 2002 (Unaudited) Fund Fund Index Fund Assets Investment income Income: Dividends $ 1,745,146 $ 145,925 $ 219,797 Interest 66,094 -- -- Less foreign taxes withheld (9,903) -- (14) ------ ------ --- Total income 1,801,337 145,925 219,783 --------- ------- ------- Expenses (Note 2): Investment management services fee 287,628 37,398 47,214 Distribution fee -- Class D 50,786 17,920 13,727 Transfer agency fee 232,173 11,641 6,485 Administrative services fees and expenses 95,845 10,167 15,960 Compensation of board members 5,963 5,963 5,963 Custodian fees 67,081 35,084 14,848 Printing and postage 18,356 2,200 4,780 Registration fees 25,487 11,179 13,998 Licensing fees 6,099 5,068 7,606 Audit fees 7,375 7,125 7,500 Other 1,315 61 1,590 ----- -- ----- Total expenses 798,108 143,806 139,671 Expenses waived/reimbursed by AEFC (Note 2) (281,560) (60,991) (48,793) -------- ------- ------- 516,548 82,815 90,878 Earnings credits on cash balances (Note 2) (1,825) (86) -- ------ --- ------ Total net expenses 514,723 82,729 90,878 ------- ------ ------ Investment income (loss) -- net 1,286,614 63,196 128,905 --------- ------ ------- Realized and unrealized gain (loss) -- net Net realized gain (loss) on: Security transactions (Note 3) (3,890,777) 123,155 (592,468) Futures contracts (1,789,973) -- -- ---------- ------ ------ Net realized gain (loss) on investments (5,680,750) 123,155 (592,468) Net change in unrealized appreciation (depreciation) on investments (47,732,879) (4,311,593) (5,715,304) ----------- ---------- ---------- Net gain (loss) on investments (53,413,629) (4,188,438) (6,307,772) ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations $(52,127,015) $(4,125,242) $(6,178,867) ============ =========== ===========
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 84 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Statements of operations AXP Market Advantage Series, Inc. AXP AXP International Nasdaq Equity 100 Six months ended Juy 31, 2002 (Unaudited) Index Fund Index Fund Investment income Income: Dividends $ 273,625 $ 6,538 Interest 4,711 286 Less foreign taxes withheld (21,301) -- ------- ------- Total income 257,035 6,824 ------- ----- Expenses (Note 2): Investment management services fee 49,119 46,017 Distribution fee -- Class D 10,098 16,811 Transfer agency fee 4,197 51,521 Administrative services fees and expenses 9,824 5,889 Compensation of board members 5,963 5,963 Custodian fees 33,225 12,526 Printing and postage 600 2,899 Registration fees 9,360 10,978 Licensing fee 2,480 3,085 Audit fees 7,750 6,875 Other 1,055 603 ----- --- Total expenses 133,671 163,167 Expenses waived/reimbursed by AEFC (Note 2) (60,657) (80,934) ------- ------- 73,014 82,233 Earnings credits on cash balances (Note 2) -- (275) ---- Total net expenses 73,014 81,958 ------ ------ Investment income (loss) -- net 184,021 (75,134) ------- ------- Realized and unrealized gain (loss) -- net Net realized gain (loss) on: Security transactions (Note 3) (370,448) (3,965,474) Foreign currency transactions 102,239 -- Futures contracts (89,237) (34,084) ------- ------- Net realized gain (loss) on investments (357,446) (3,999,558) Net change in unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies (1,087,984) (7,406,949) ---------- ---------- Net gain (loss) on investments and foreign currencies (1,445,430) (11,406,507) ---------- ----------- Net increase (decrease) in net assets resulting from operations $(1,261,409) $(11,481,641) ============ ============ See accompanying notes to financial statements.
-------------------------------------------------------------------------------- 85 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Statements of changes in net assets AXP Market Advantage Series, Inc. AXP S&P 500 Index Fund AXP Mid Cap Index Fund July 31, 2002 Jan. 31, 2002 July 31, 2002 Jan. 31, 2002 Six months ended Year ended Six months ended Year ended (Unaudited) (Unaudited) Operations and distributions Investment income (loss) -- net $ 1,286,614 $ 1,420,288 $ 63,196 $ 105,375 Net realized gain (loss) on investments (5,680,750) (1,419,358) 123,155 498,339 Net change in unrealized appreciation (depreciation) on investments (47,732,879) (21,888,911) (4,311,593) (1,161,338) ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations (52,127,015) (21,887,981) (4,125,242) (557,624) ----------- ----------- ---------- -------- Distributions to shareholders from: Net investment income Class D -- (137,354) -- (38,024) Class E -- (862,774) -- (64,488) Net realized gain Class D -- (296,859) -- (418,561) Class E -- (1,262,697) -- (429,935) ---------- -------- Total distributions -- (2,559,684) -- (951,008) ---- ---------- ---- -------- Capital share transactions (Note 4) Proceeds from sales Class D shares 16,923,654 28,117,787 4,260,831 6,040,252 Class E shares 85,648,019 148,724,557 3,661,732 2,882,108 Reinvestment of distributions at net asset value Class D shares -- 434,213 -- 308,421 Class E shares -- 2,125,471 -- 129,104 Payments for redemptions Class D shares (8,349,435) (6,757,278) (1,254,221) (1,411,389) Class E shares (8,830,210) (31,791,729) (1,147,478) (335,291) ---------- ----------- ---------- -------- Increase (decrease) in net assets from share transactions 85,392,028 140,853,021 5,520,864 7,613,205 ---------- ----------- --------- --------- Total increase (decrease) in net assets 33,265,013 116,405,356 1,395,622 6,104,573 Net assets at beginning of period 225,060,100 108,654,744 26,022,449 19,917,876 ----------- ----------- ---------- ---------- Net assets at end of period $258,325,113 $225,060,100 $27,418,071 $26,022,449 ============ ============ =========== =========== Undistributed net investment income $ 1,800,564 $ 513,950 $ 71,882 $ 8,686 ------------ ------------ ----------- -----------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 86 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Statements of changes in net assets AXP Market Advantage Series, Inc. AXP Total Stock AXP International Market Index Fund Equity Index Fund July 31, 2002 Jan. 31, 2002 July 31, 2002 Jan. 31, 2002 Six months ended Year ended Six months ended Year ended (Unaudited) (Unaudited) Operations and distributions Investment income (loss) -- net $ 128,905 $ 224,684 $ 184,021 $ 225,857 Net realized gain (loss) on investments (592,468) (200,689) (357,446) (927,072) Net change in unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies (5,715,304) (5,367,739) (1,087,984) (5,537,781) ---------- ---------- ---------- ---------- Net increase (decrease) in net assets resulting from operations (6,178,867) (5,343,744) (1,261,409) (6,238,996) ---------- ---------- ---------- ---------- Distributions to shareholders from: Net investment income Class D -- (42,194) -- -- Class E -- (131,806) -- (14,277) Net realized gain Class D -- (55,162) -- -- Class E -- (112,731) -- -- -------- Total distributions -- (341,893) -- (14,277) -------- -------- -------- ------- Capital share transactions (Note 4) Proceeds from sales Class D shares 1,691,083 4,463,828 775,741 3,136,522 Class E shares 932,564 1,987,639 416,616 548,520 Reinvestment of distributions at net asset value Class D shares -- 44,973 -- -- Class E shares -- 144,337 -- 1,361 Payments for redemptions Class D shares (560,383) (882,500) (618,650) (761,393) Class E shares (566,762) (430,149) (319,623) (152,364) -------- -------- -------- -------- Increase (decrease) in net assets from share transactions 1,496,502 5,328,128 254,084 2,772,646 --------- --------- ------- --------- Total increase (decrease) in net assets (4,682,365) (357,509) (1,007,325) (3,480,627) Net assets at beginning of period 32,385,170 32,742,679 19,162,525 22,643,152 ---------- ---------- ---------- ---------- Net assets at end of period $ 27,702,805 $ 32,385,170 $ 18,155,200 $ 19,162,525 ============ ============ ============ ============ Undistributed net investment income $ 203,807 $ 74,902 $ 198,09 $ 14,073 --------- -------- -------- ------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 87 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
Statements of changes in net assets AXP Market Advantage Series, Inc. AXP Nasdaq 100 Index Fund July 31, 2002 Jan. 31, 2002 Six months ended Year ended (Unaudited) Operations and distributions Investment income (loss) -- net $ (75,134) $ (165,750) Net realized gain (loss) on investments (3,999,558) (6,128,335) Net change in unrealized appreciation (depreciation) on investments (7,406,949) (8,984,159) ------------ ------------ Net increase (decrease) in net assets resulting from operations (11,481,641) (15,278,244) ------------ ------------ Distributions to shareholders from: Net realized gain Class D -- (13,031) Class E -- (9,725) ------------ ------------ Total distributions -- (22,756) ------------ ------------ Capital share transactions (Note 4) Proceeds from sales Class D shares 3,004,805 8,450,987 Class E shares 4,579,591 12,051,775 Reinvestment of distributions at net asset value Class D shares -- 13,031 Class E shares -- 9,726 Payments for redemptions Class D shares (3,568,985) (7,301,406) Class E shares (3,421,882) (6,581,517) ------------ ------------ Increase (decrease) in net assets from share transactions 593,529 6,642,596 ------------ ------------ Total increase (decrease) in net assets (10,888,112) (8,658,404) Net assets at beginning of period 28,818,647 37,477,051 ------------ ------------ Net assets at end of period $ 17,930,535 $ 28,818,647 ============ ============
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 88 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Notes to Financial Statements AXP Market Advantage Series, Inc. (Unaudited as to July 31, 2002) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Each Fund is a series of AXP Market Advantage Series, Inc. and is registered under the Investment Company Act of 1940 (as amended) as a non-diversified, open-end management investment company. AXP Market Advantage Series, Inc. has 10 billion authorized shares of capital stock that can be allocated among the separate series as designated by the board. The primary investments of each Fund are as follows: AXP S&P 500 Index Fund invests in common stocks included in the Standard & Poor's 500 Composite Stock Price Index (S&P 500). AXP Mid Cap Index Fund invests in common stocks included in the Standard & Poor's MidCap 400 Index (S&P MidCap 400). AXP Total Stock Market Index Fund invests in common stocks included in the Wilshire 5000 Total Market Index (Wilshire 5000). AXP International Equity Index Fund invests in common stocks included in the Morgan Stanley Capital International Europe, Australasia, Far East (EAFE) Index. AXP Nasdaq 100 Index Fund invests in common stocks included in the Nasdaq 100 Index. While the Funds may track its index closely, it is typically unable to match the performance of the index exactly, primarily due to fund operating expenses and transaction costs. The Funds offer Class D and Class E shares and are sold without a sales charge. Class E shares are only available to American Express brokerage accounts or qualifying institutional investors. Both classes of shares have identical voting, dividend and liquidation rights. The distribution fee (class specific expense) differs between 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. Each Fund's significant accounting policies are summarized below: Use of estimates Preparing financial statements that conform to accounting principles generally accepted in the United States of America requires management to make estimates (e.g., on assets, liabilities and contingent assets and liabilities) that could differ from actual results. Valuation of securities All securities are valued at the close of each business day. Securities traded on national securities exchanges or included in national market systems are valued at the last quoted sale 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 -------------------------------------------------------------------------------- 89 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT pricing service. Foreign securities are valued based on quotations from the principal market in which such securities are normally traded. If trading or events occurring in other markets after the close of the principal market in which foreign securities are traded, and before the close of business of the Fund, are expected to materially affect the value of those securities, then they are valued at their fair value taking this trading or these events into account. 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 As part of its indexing strategies, the Funds 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 Funds give up the opportunity for profit if the market price of the security increases. The risk in writing a put option is that the Funds 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 Funds pay a premium whether or not the option is exercised. The Funds also have the additional risk of being unable to enter into a closing transaction if a liquid secondary market does not exist. The Funds also may write over-the-counter options where completing the obligation depends upon the credit standing of the other party. Option contracts are valued daily at the closing prices on their primary exchanges and unrealized appreciation or depreciation is recorded. The Funds 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 the premium received or paid. 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 Funds may enter into 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 Funds and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. The Funds are subject to the credit risk that the other party will not complete its contract obligations. -------------------------------------------------------------------------------- 90 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Futures transactions As part of its indexing strategies, the Funds may buy and sell futures contracts traded on any U.S. or foreign exchange. The Funds 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 Funds are 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 Funds 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 Funds recognize a realized gain or loss when the contract is closed or expires. Short sales The Funds may engage in short sales. In these transactions, the Funds sell a security that it does not own. The Funds are obligated to replace the security that was short by purchasing it at the market price at the time of replacement or entering into an offsetting transaction with the broker. The price at such time may be more or less than the price at which the Funds sold the security. Federal taxes Each 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. Each Fund is treated as a separate entity for federal income tax purposes. 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 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 Funds. 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 each Fund at net asset value or payable in cash. Capital gains, when available, are distributed along with the income dividend. Other Security transactions are accounted for on the date securities are purchased or sold. Dividend income is recognized on the ex-dividend date and interest income, including level-yield amortization of premium and discount, is accrued daily. -------------------------------------------------------------------------------- 91 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT 2. EXPENSES AND SALES CHARGES Each 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 each Fund's average daily net assets in reducing percentages as follows: Fund Percentage range AXP S&P 500 Index Fund 0.24% to 0.21% AXP Mid Cap Index Fund 0.26% to 0.23% AXP Total Stock Market Index Fund 0.30% to 0.26% AXP International Equity Index Fund 0.50% to 0.46% AXP Nasdaq 100 Index Fund 0.38% to 0.34% AEFC has a Sub-investment Advisory Agreement with SSgA Funds Management, Inc. for AXP International Equity Index Fund. Under an Administrative Services Agreement, each Fund pays AEFC a fee for administration and accounting services at a percentage of each Fund's average daily net assets in reducing percentages as follows: Fund Percentage range AXP S&P 500 Index Fund 0.080% to 0.065% AXP Mid Cap Index Fund 0.080% to 0.065% AXP Total Stock Market Index Fund 0.110% to 0.090% AXP International Equity Index Fund 0.100% to 0.080% AXP Nasdaq 100 Index Fund 0.060% to 0.040% A minor portion of additional administrative service expenses paid by the Funds are consultants' fees and fund office expenses. Under this agreement, the Funds also pay 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 Funds and approved by the board. Under a separate Transfer Agency Agreement, American Express Client Service Corporation (AECSC) maintains shareholder accounts and records. Each Fund pays AECSC an annual fee per shareholder account for this service as follows: o Class D $19 o Class E $19 Each Fund has agreements with American Express Financial Advisors Inc. (the Distributor) for distribution and shareholder services. Under a Plan and Agreement of Distribution, each Fund pays a distribution fee at an annual rate of 0.25% of each Fund's average daily net assets attributable to Class D shares. For AXP S&P 500 Index Fund, AEFC and AECSC have agreed to waive certain fees and to absorb certain other Fund expenses until Jan. 31, 2004. For AXP Mid Cap Index Fund, AXP Total Stock Market Index Fund, AXP International Equity Index Fund and AXP Nasdaq 100 Index Fund, AEFC and AECSC have agreed to waive certain fees and to absorb certain other Fund expenses until Jan. 31, 2003. Under this agreement, net expenses for Class D will not exceed 0.64% for AXP S&P 500 Index Fund, 0.70% for AXP Mid Cap Index Fund, 0.74% for AXP Total Stock Market Index Fund, 0.89% for AXP International -------------------------------------------------------------------------------- 92 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT Equity Index Fund, and 0.79% for AXP Nasdaq 100 Index Fund. Net expenses for Class E will not exceed 0.39% for AXP S&P 500 Index Fund, 0.45% for AXP Mid Cap Index Fund, 0.49% for AXP Total Stock Market Index Fund, 0.64% for AXP International Equity Index Fund, and 0.54% for AXP Nasdaq 100 Index Fund. Shares held in the Funds for less than 180 days are subject to a redemption fee of .50% (.75% for the International Equity Index Fund) of the proceeds of the redeemed shares. The redemption fee is retained by the Funds and accounted for as an addition to paid-in capital. For accounts under $10,000, an annual fee of $10 is charged and deducted from the client's account. During the six months ended July 31, 2002, the Funds' custodian and transfer agency fees were reduced as a result of earnings credits from overnight cash balances as follows: Fund Reduction AXP S&P 500 Index Fund $1,825 AXP Mid Cap Index Fund 86 AXP Nasdaq 100 Index Fund 275 The Funds also pay custodian fees to American Express Trust Company, an affiliate of AEFC. 3. SECURITIES TRANSACTIONS For the six months ended July 31, 2002, cost of purchases and proceeds from sales (other than short-term obligations) aggregated for each Fund are as follows: Fund Purchases Proceeds AXP S&P 500 Index Fund $93,408,460 $6,071,952 AXP Mid Cap Index Fund 15,217,638 9,558,111 AXP Total Stock Market Index Fund 4,367,351 2,732,490 AXP International Equity Index Fund 1,692,654 1,010,519 AXP Nasdaq 100 Index Fund 9,306,915 9,251,577 Realized gains and losses are determined on an identified cost basis. 4. CAPITAL SHARE TRANSACTIONS Transactions in shares of capital stock for the periods indicated are as follows: AXP S&P 500 Index Fund Six months ended July 31, 2002 Class D Class E Sold 4,098,192 21,453,489 Issued for reinvested distributions -- -- Redeemed (2,095,189) (2,225,244) ---------- ---------- Net increase (decrease) 2,003,003 19,228,245 --------- ---------- Year ended Jan. 31, 2002 Class D Class E Sold 6,162,752 32,539,639 Issued for reinvested distributions 98,238 480,876 Redeemed (1,514,528) (6,738,175) ---------- ---------- Net increase (decrease) 4,746,462 26,282,340 --------- ---------- -------------------------------------------------------------------------------- 93 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP Mid Cap Index Fund Six months ended July 31, 2002 Class D Class E Sold 724,851 624,900 Issued for reinvested distributions -- -- Redeemed (224,394) (203,812) -------- -------- Net increase (decrease) 500,457 421,088 ------- ------- Year ended Jan. 31, 2002 Class D Class E Sold 1,049,808 507,332 Issued for reinvested distributions 54,204 22,650 Redeemed (249,801) (58,972) -------- ------- Net increase (decrease) 854,211 471,010 ------- ------- AXP Total Stock Market Index Fund Six months ended July 31, 2002 Class D Class E Sold 385,627 217,920 Issued for reinvested distributions -- -- Redeemed (137,617) (138,224) -------- -------- Net increase (decrease) 248,010 79,696 ------- ------ Year ended Jan. 31, 2002 Class D Class E Sold 963,751 425,622 Issued for reinvested distributions 9,841 31,584 Redeemed (189,059) (90,453) -------- ------- Net increase (decrease) 784,533 366,753 ------- ------- SAXP International Equity Index Fund Six months ended July 31, 2002 Class D Class E Sold 211,871 113,167 Issued for reinvested distributions -- -- Redeemed (168,657) (91,264) -------- ------- Net increase (decrease) 43,214 21,903 ------ ------ Year ended Jan. 31, 2002 Class D Class E Sold 785,480 140,343 Issued for reinvested distributions -- 372 Redeemed (197,016) (38,850) -------- ------- Net increase (decrease) 588,464 101,865 ------- ------- -------------------------------------------------------------------------------- 94 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP Nasdaq 100 Index Fund Six months ended July 31, 2002 Class D Class E Sold 1,102,744 1,802,416 Issued for reinvested distributions -- -- Redeemed (1,497,861) (1,353,945) ---------- ---------- Net increase (decrease) (395,117) 448,471 -------- ------- Year ended Jan. 31, 2002 Class D Class E Sold 2,547,589 3,568,210 Issued for reinvested distributions 4,098 3,049 Redeemed (2,095,800) (1,914,767) ---------- ---------- Net increase (decrease) 455,887 1,656,492 ------- --------- 5. STOCK INDEX FUTURES CONTRACTS Investments in securities as of July 31, 2002, included securities that were valued and pledged as collateral to cover initial margin deposits. The market value of this collateral and open futures contracts is as follows:
Open Notional Net Market purchase market unrealized value (sale) value gain (loss) Fund of collateral contracts on futures on futures AXP S&P 500 Index Fund $3,695,978 92 $3,554,850 $ (63,305) AXP International Equity Index Fund 160,705 26 1,193,957 (108,193) AXP Nasdaq 100 Index Fund 173,181 22 423,060 (16,368)
See "Summary of significant accounting policies." 6. FOREIGN CURRENCY CONTRACTS As of July 31, 2002, AXP International Equity Index Fund has foreign currency exchange contracts that obligate it to deliver currencies at specified future dates. The unrealized appreciation and/or depreciation on these contracts is included in the accompanying financial statements. See "Summary of significant accounting policies." The terms of the open contracts are as follows:
Currency to Currency to Unrealized Unrealized Exchange date be delivered be received appreciation depreciation Oct. 3, 2002 54,125 100,000 $ -- $1,485 U.S. Dollar Australian Dollar Oct. 3, 2002 389,116 250,000 9,816 -- U.S. Dollar British Pound Oct. 3, 2002 116,735 75,000 -- 213 U.S. Dollar British Pound Oct. 3, 2002 9,776 10,000 -- 29 U.S. Dollar European Monetary Unit Oct. 3, 2002 251,322 30,000,000 -- 356 U.S. Dollar Japanese Yen ------ ------ Total $9,816 $2,083 ------ ------
-------------------------------------------------------------------------------- 95 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT 7. BANK BORROWINGS Each Fund has a revolving credit agreement with U.S. Bank, N.A., whereby each Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. Each 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 each 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. Each 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. Each Fund had no borrowings outstanding during the six months ended July 31, 2002. 8. CAPITAL LOSS CARRY-OVER For federal income tax purposes, capital loss carry-overs were as follows as of Jan. 31, 2002: Fund Carry-over Expiration date AXP S&P 500 Index Fund $ 328,005 2010 AXP Total Stock Market Index Fund 178,882 2010-2011 AXP International Equity Index Fund 654,818 2010-2011 AXP Nasdaq 100 Index Fund 6,252,188 2010-2011 It is unlikely the board will authorize a distribution of any net realized capital gains for a Fund until the respective capital loss carry-over has been offset or expires. -------------------------------------------------------------------------------- 96 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT 9. FINANCIAL HIGHLIGHTS The tables below show certain important financial information for evaluating each Fund's results. AXP S&P 500 Index Fund
Class D Per share income and capital changes(a) Fiscal period ended Jan. 31, 2002(g) 2002 2001 2000(b) Net asset value, beginning of period $4.36 $5.30 $5.42 $5.07 ----- ----- ----- ----- Income from investment operations: Net investment income (loss) .01 .02 .02 .01 Net gains (losses) (both realized and unrealized) (.83) (.91) (.12) .35 ---- ---- ---- --- Total from investment operations (.82) (.89) (.10) .36 ---- ---- ---- --- Less distributions: Dividends from net investment income -- (.02) (.01) (.01) Distributions from realized gains -- (.03) (.01) -- ----- ----- ----- ----- Total distributions -- (.05) (.02) (.01) ----- ----- ----- ----- Net asset value, end of period $3.54 $4.36 $5.30 $5.42 ----- ----- ----- ----- Ratios/supplemental data Net assets, end of period (in millions) $38 $38 $21 $7 Ratio of expenses to average daily net assets(c),(d) .64%(f) .64% .62% .64%(f) Ratio of net investment income (loss) to average daily net assets .86%(f) .74% .65% .52%(f) Portfolio turnover rate (excluding short-term securities) 3% 27% 82% 37% Total return (18.81%) (16.74%) (1.73%) 7.72%
See accompanying notes to financial highlights -------------------------------------------------------------------------------- 97 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP S&P 500 Index Fund
Class E Per share income and capital changes(a) Fiscal period ended Jan. 31, 2002(g) 2002 2001 2000(b) Net asset value, beginning of period $4.37 $5.31 $5.42 $5.07 Income from investment operations: Net investment income (loss) .02 .03 .03 .01 Net gains (losses) (both realized and unrealized) (.84) (.91) (.11) .35 ----- ----- ----- ----- Total from investment operations (.82) (.88) (.08) .36 ----- ----- ----- ----- Less distributions: Dividends from net investment income -- (.03) (.02) (.01) Distributions from realized gains -- (.03) (.01) -- ----- ----- ----- ----- Total distributions -- (.06) (.03) (.01) ----- ----- ----- ----- Net asset value, end of period $3.55 $4.37 $5.31 $5.42 ----- ----- ----- ----- Ratios/supplemental data Net assets, end of period (in millions) $220 $187 $87 $9 Ratio of expenses to average daily net assets(c),(e) .39%(f) .39% .35% .39%(f) Ratio of net investment income (loss) to average daily net assets 1.12%(f) .98% 1.05% .83%(f) Portfolio turnover rate (excluding short-term securities) 3% 27% 82% 37% Total return (18.76%) (16.55%) (1.35%) 7.75%
Notes to financial highlights (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) For the period from Oct. 25, 1999 (when shares became publicly available) to Jan. 31, 2000 (c) Expense ratio is based on total expenses of the Fund before reduction of earning credits on cash balances (d) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 0.87%, 0.97%, 1.18% and 4.00% for Class D for the six months ended July 31, 2002 and for the periods ended Jan. 31, 2002, 2001 and 2000, respectively (e) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 0.62%, 0.72%, 0.73% and 3.70% for Class E for the six months ended July 31, 2002 and for the periods ended Jan. 31, 2002, 2001 and 2000, respectively (f) Adjusted to an annual basis (g) Six months ended July 31, 2002 (Unaudited) -------------------------------------------------------------------------------- 98 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT AXP Mid Cap Index Fund
Class D Per share income and capital changes(a) Fiscal period ended Jan. 31, 2002(g) 2002 2001 2000(b) Net asset value, beginning of period $5.73 $6.20 $5.71 $5.07 Income from investment operations: Net investment income (loss) .01 .02 .03 .01 Net gains (losses) (both realized and unrealized) (.72) (.27) 1.20 .64 ----- ----- ----- ----- Total from investment operations (.71) (.25) 1.23 .65 ----- ----- ----- ----- Less distributions: Dividends from net investment income -- (.02) (.03) (.01) Distributions from realized gains -- (.20) (.71) -- ----- ----- ----- ----- Total distributions -- (.22) (.74) (.01) ----- ----- ----- ----- Net asset value, end of period $5.02 $5.73 $6.20 $5.71 ----- ----- ----- ----- Ratios/supplemental data Net assets, end of period (in millions) $14 $13 $9 $4 Ratio of expenses to average daily net assets(c),(d) .70%(f) .70% .66% .69%(f) Ratio of net investment income (loss) to average daily net assets .31%(f) .35% .42% .59%(f) Portfolio turnover rate (excluding short-term securities) 33% 58% 109% 16% Total return (12.39%) (4.04%) 22.62% 12.87% See accompanying notes to financial highlights
-------------------------------------------------------------------------------- 99 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
AXP Mid Cap Index Fund Class E Per share income and capital changes(a) Fiscal period ended Jan. 31, 2002(g) 2002 2001 2000(b) Net asset value, beginning of period $5.74 $6.21 $5.71 $5.07 Income from investment operations: Net investment income (loss) .01 .03 .04 .02 Net gains (losses) (both realized and unrealized) (.72) (.27) 1.21 .64 ----- ----- ----- ----- Total from investment operations (.71) (.24) 1.25 .66 ----- ----- ----- ----- Less distributions: Dividends from net investment income -- (.03) (.04) (.02) Distributions from realized gains -- (.20) (.71) -- ----- ----- ----- ----- Total distributions -- (.23) (.75) (.02) ----- ----- ----- ----- Net asset value, end of period $5.03 $5.74 $6.21 $5.71 ----- ----- ----- ----- Ratios/supplemental data Net assets, end of period (in millions) $14 $13 $11 $8 Ratio of expenses to average daily net assets(c),(e) .45%(f) .45% .42% .45%(f) Ratio of net investment income (loss) to average daily net assets .57%(f) .61% .67% .83%(f) Portfolio turnover rate (excluding short-term securities) 33% 58% 109% 16% Total return (12.37%) (3.84%) 23.06% 12.92%
Notes to financial highlights (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) For the period from Oct. 25, 1999 (when shares became publicly available) to Jan. 31, 2000 (c) Expense ratio is based on total expenses of the Fund before reduction of earning credits on cash balances (d) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 1.13%, 1.20%, 1.32% and 2.22% for Class D for the six months ended July 31, 2002 and for the periods ended Jan. 31, 2002, 2001 and 2000, respectively (e) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 0.87%, 0.95%, 1.08% and 1.96% for Class E for the six months ended July 31, 2002 and for the periods ended Jan. 31, 2002, 2001 and 2000, respectively (f) Adjusted to an annual basis (g) Six months ended July 31, 2002 (Unaudited) -------------------------------------------------------------------------------- 100 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
AXP Total Stock Market Index Fund Class D Per share income and capital changes(a) Fiscal period ended Jan. 31, 2002(g) 2002 2001 2000(b) Net asset value, beginning of period $4.53 $5.45 $5.76 $5.19 Income from investment operations: Net investment income (loss) .02 .02 .02 .01 Net gains (losses) (both realized and unrealized) (.85) (.90) (.25) .57 ----- ----- ----- ----- Total from investment operations (.83) (.88) (.23) .58 ----- ----- ----- ----- Less distributions: Dividends from net investment income -- (.02) (.01) (.01) Distributions from realized gains -- (.02) (.07) -- ----- ----- ----- ----- Total distributions -- (.04) (.08) (.01) ----- ----- ----- ----- Net asset value, end of period $3.70 $4.53 $5.45 $5.76 ----- ----- ----- ----- Ratios/supplemental data Net assets, end of period (in millions) $10 $11 $9 $8 Ratio of expenses to average daily net assets(c),(d) .74%(f) .74% .69% .74%(f) Ratio of net investment income (loss) to average daily net assets .66%(f) .57% .43% .39%(f) Portfolio turnover rate (excluding short-term securities) 9% 24% 25% 4% Total return (18.32%) (16.10%) (3.79%) 11.57% See accompanying notes to financial highlights
-------------------------------------------------------------------------------- 101 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
AXP Total Stock Market Index Fund Class E Per share income and capital changes(a) Fiscal period ended Jan. 31, 2002(g) 2002 2001 2000(b) Net asset value, beginning of period $4.53 $5.45 $5.76 $5.19 Income from investment operations: Net investment income (loss) .02 .04 .03 .01 Net gains (losses) (both realized and unrealized) (.85) (.91) (.24) .57 ----- ----- ----- ----- Total from investment operations (.83) (.87) (.21) .58 ----- ----- ----- ----- Less distributions: Dividends from net investment income -- (.03) (.03) (.01) Distributions from realized gains -- (.02) (.07) -- ----- ----- ----- ----- Total distributions -- (.05) (.10) (.01) ----- ----- ----- ----- Net asset value, end of period $3.70 $4.53 $5.45 $5.76 ----- ----- ----- ----- Ratios/supplemental data Net assets, end of period (in millions) $18 $21 $24 $16 Ratio of expenses to average daily net assets(c),(e) .49%(f) .49% .43% .49%(f) Ratio of net investment income (loss) to average daily net assets .91%(f) .81% .70% .64%(f) Portfolio turnover rate (excluding short-term securities) 9% 24% 25% 4% Total return (18.32%) (15.92%) (3.53%) 11.61%
Notes to financial highlights (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) For the period from Oct. 25, 1999 (when shares became publicly available) to Jan. 31, 2000 (c) Expense ratio is based on total expenses of the Fund before reduction of earning credits on cash balances (d) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 1.05%, 0.94%, 1.29% and 1.52% for Class D for the six months ended July 31, 2002 and for the periods ended Jan. 31, 2002, 2001 and 2000, respectively (e) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 0.80%, 0.69%, 1.02% and 1.27% for Class E for the six months ended July 31, 2002 and for the periods ended Jan. 31, 2002, 2001 and 2000, respectively (f) Adjusted to an annual basis (g) Six months ended July 31, 2002 (Unaudited) -------------------------------------------------------------------------------- 102 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
AXP International Equity Index Fund Class D Per share income and capital changes(a) Fiscal period ended Jan. 31, 2002(f) 2002 2001 2000(b) Net asset value, beginning of period $3.54 $4.80 $5.42 $5.00 Income from investment operations: Net investment income (loss) .03 .04 .03 -- Net gains (losses) (both realized and unrealized) (.26) (1.30) (.55) .43 ----- ----- ----- ----- Total from investment operations (.23) (1.26) (.52) .43 ----- ----- ----- ----- Less distributions: Dividends from net investment income -- -- (.03) -- Distributions from realized gains -- -- (.07) (.01) ----- ----- ----- ----- Total distributions -- -- (.10) (.01) ----- ----- ----- ----- Net asset value, end of period $3.31 $3.54 $4.80 $5.42 ----- ----- ----- ----- Ratios/supplemental data Net assets, end of period (in millions) $8 $8 $8 $7 Ratio of expenses to average daily net assets(c) .89%(e) .89% .89% .89%(e) Ratio of net investment income (loss) to average daily net assets 1.72%(e) .94% .65% .13%(e) Portfolio turnover rate (excluding short-term securities) 5% 6% 8% 4% Total return (6.50%) (26.25%) (9.55%) 8.09% See accompanying notes to financial highlights
-------------------------------------------------------------------------------- 103 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
AXP International Equity Index Fund Class E Per share income and capital changes(a) Fiscal period ended Jan. 31, 2002(f) 2002 2001 2000(b) Net asset value, beginning of period $3.55 $4.80 $5.42 $5.00 Income from investment operations: Net investment income (loss) .04 .05 .05 .01 ----- ----- ----- ----- Net gains (losses) (both realized and unrealized) (.27) (1.30) (.56) .42 ----- ----- ----- ----- Total from investment operations (.23) (1.25) (.51) .43 ----- ----- ----- ----- Less distributions: Dividends from net investment income -- -- (.04) -- Distributions from realized gains -- -- (.07) (.01) ----- ----- ----- ----- Total distributions -- -- (.11) (.01) ----- ----- ----- ----- Net asset value, end of period $3.32 $3.55 $4.80 $5.42 ----- ----- ----- ----- Ratios/supplemental data Net assets, end of period (in millions) $11 $11 $15 $15 Ratio of expenses to average daily net assets(d) .64%(e) .64% .64% .64%(e) Ratio of net investment income (loss) to average daily net assets 1.98%(e) 1.22% .93% .39%(e) Portfolio turnover rate (excluding short-term securities) 5% 6% 8% 4% Total return (6.48%) (25.95%) (9.35%) 8.09%
Notes to financial highlights (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) For the period from Oct. 25, 1999 (when shares became publicly available) to Jan. 31, 2000 (c) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 1.53%, 1.49%, 1.54% and 1.62% for Class D for the six months ended July 31, 2002 and for the periods ended Jan. 31, 2002, 2001 and 2000, respectively (d) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 1.24%, 1.20%, 1.26% and 1.37% for Class E for the six months ended July 31, 2002 and for the periods ended Jan. 31, 2002, 2001 and 2000, respectively (e) Adjusted to an annual basis (f) Six months ended July 31, 2002 (Unaudited) -------------------------------------------------------------------------------- 104 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
AXP Nasdaq 100 Index Fund Class D Per share income and capital changes(a) Fiscal period ended Jan. 31, 2002(g) 2002 2001 2000(b) Net asset value, beginning of period $3.12 $5.26 $7.52 $5.26 Income from investment operations: Net investment income (loss) (.01) (.02) (.04) (.01) Net gains (losses) (both realized and unrealized) (1.18) (2.12) (2.09) 2.27 ----- ----- ----- ----- Total from investment operations (1.19) (2.14) (2.13) 2.26 ----- ----- ----- ----- Less distributions: Distributions from realized gains -- -- (.13) -- ----- ----- ----- ----- Net asset value, end of period $1.93 $3.12 $5.26 $7.52 ----- ----- ----- ----- Ratios/supplemental data Net assets, end of period (in millions) $9 $16 $25 $11 Ratio of expenses to average daily net assets(c),(d) .79%(f) .79% .77% .79%(f) Ratio of net investment income (loss) to average daily net assets (.73%)(f) (.72%) (.70%) (.67%)(f) Portfolio turnover rate (excluding short-term securities) 38% 77% 114% 51% Total return (38.14%) (40.64%) (28.12%) 42.97% See accompanying notes to financial highlights
-------------------------------------------------------------------------------- 105 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT
AXP Nasdaq 100 Index Fund Class E Per share income and capital changes(a) Fiscal period ended Jan. 31, 2002(g) 2002 2001 2000(b) Net asset value, beginning of period $3.13 $5.28 $7.52 $5.26 Income from investment operations: Net investment income (loss) (.01) (.01) (.03) (.01) Net gains (losses) (both realized and unrealized) (1.18) (2.14) (2.08) 2.27 ----- ----- ----- ----- Total from investment operations (1.19) (2.15) (2.11) 2.26 ----- ----- ----- ----- Less distributions: Distributions from realized gains -- -- (.13) -- ----- ----- ----- ----- Net asset value, end of period $1.94 $3.13 $5.28 $7.52 ----- ----- ----- ----- Ratios/supplemental data Net assets, end of period (in millions) $9 $13 $13 $13 Ratio of expenses to average daily net assets(c),(e) .54%(f) .54% .52% .54%(f) Ratio of net investment income (loss) to average daily net assets (.48%)(f) (.47%) (.45%) (.41%)(f) Portfolio turnover rate (excluding short-term securities) 38% 77% 114% 51% Total return (38.02%) (40.67%) (27.85%) 42.97%
Notes to financial highlights (a) For a share outstanding throughout the period. Rounded to the nearest cent. (b) For the period from Oct. 25, 1999 (when shares became publicly available) to Jan. 31, 2000. (c) Expense ratio is based on total expenses of the Fund before reduction of earning credits on cash balances. (d) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expense would have been 1.46%, 1.33%, 1.09% and 1.82% for Class D for the six months ended July 31, 2002 and for the periods ended Jan. 31, 2002, 2001 and 2000, respectively. (e) AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expense would have been 1.21%, 1.08%, 0.85% and 1.54% for Class E for the six months ended July 31, 2002 and for the periods ended Jan. 31, 2002, 2001 and 2000, respectively. (f) Adjusted to an annual basis. (g) Six months ended July 31, 2002 (Unaudited). -------------------------------------------------------------------------------- 106 -- AXP INDEX FUNDS -- 2002 SEMIANNUAL REPORT American Express(R) Funds 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 International Equity Index Fund AXP Large Cap Equity Fund AXP Managed Allocation Fund AXP Mid Cap Index Fund AXP Nasdaq 100 Index(R) 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 AXP Total Stock Market Index 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 Select Value 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 Select Value 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. For more complete information about our funds, including fees and expenses, please call (800) 862-7919 for prospectuses. Read them carefully before you invest. (9/02) AXP Index Funds 70100 AXP Financial Center Minneapolis, MN 55474 americanexpress.com -------------------------------------------------------------------------------- (logo) (logo) American AMERICAN Express(R) EXPRESS Funds (R) -------------------------------------------------------------------------------- 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-6436 D (9/02)