1. The next step
Talk to your American Express financial advisor who can help you review your
financial situation, your long-term goals, and discuss the risks of investing. Based on
these factors, your advisor can help you select the AXP Portfolio Builder fund best
suited to you. With one decision and one purchase, you can establish a blueprint for
achieving your financial goals.
There are special risk considerations associated with international investing related to market, currency, economic, political and other factors.
Stocks of small companies generally may be subject to abrupt or erratic price movements more so than stocks of larger companies. Some of
these companies also have fewer financial resources. Higher yield corporate bond prices may fluctuate more broadly than prices of higher
quality bonds. Risk of principal and income is also greater than with higher quality securities.
Products offered are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institution and involve
investment risks including possible loss of principal and fluctuation in value.
You should consider the investment objectives, risks, charges and expenses of each AXP Portfolio Builder fund carefully before investing. For a
free copy of the prospectus, which contains this and other information, call (800) 297-3863, TTY: (800) 846-4852. Read the prospectus
carefully before you invest.
Investor Guide
Managing the economy that means most: yours. SM
Investing is smart.
Keeping it simple is even smarter.
SM
American Express Funds
70100 AXP Financial Center
Minneapolis, MN 55474
americanexpress.com
American Express Financial Advisors Inc. Member NASD.
© 2004 American Express Financial Corporation American Express Company is separate from American Express
All rights reserved. Financial Advisors Inc. and is not a broker-dealer. 230584 A (2/04)

2. Smart investing can help tackle some of life’s big challenges. American Express has designed
AXP® Portfolio Builder Series with you and your investment needs in mind. AXP Portfolio Builder
Series gives you access to a team of experienced professionals to help you manage your
personal economy.
Simplified decisions. Smart investing. Greater peace of mind.
Your time is valuable. You want an Whatever your investing goals may be, As an investor, you want peace of mind. You
investing approach that is clear, convenient you want to believe that you have selected want to know you are getting the best advice,
and that keeps working for you as your a flexible financial solution that takes your your investments are receiving careful
investing needs evolve over time. After you personal investment profile into account. Your oversight and that your portfolio is designed to
discuss your goals with your American selection can help you tackle some of the bigger meet your goals. In other words, you want to
Express financial advisor, you want the financial challenges you will encounter invest in a way that’s comfortable for you.
money managers you hire to consistently in your life.
make sound investment decisions.

3. Market volatility:
a reality to bear in mind.
S&P 500 Index average annual
For more than half a century, total returns through 12/31/03
50-year 11.63%
long-term stock market investors The stock market’s ups and downs for the past 50 years
25-year 13.84%
Year-by-year returns of the Standard & Poor’s 500 Index
have been rewarded. However, 10-year 10.06%
Dec. 31, 1953 to Dec. 31, 2003
5-year -0.57%
from day-to-day, month-to-month 1-year 28.67%
60% Number of years with positive returns: 38
and year-to-year, the stock Number of years with negative returns: 12
Source: Thomson/InvestmentView as of 12/31/03
market can be volatile. This is 50%
also true for the bond market.
40%
To take advantage of the
Total Return
investment opportunities that 30%
come with market and economic
20%
changes, you need a portfolio mix
10%
that recognizes the potential for
volatility, a portfolio that is 0%
built to:
-10%
■ Reflect your level of comfort
with the market’s ups and -20%
downs.
-30%
■ Capitalize on the insight ’53 ’54 ’55 ’56 ’57 ’58 ’59 ’60 ’61 ’62 ’63 ’64 ’65 ’66 ’67 ’68 ’69 ’70 ’71 ’72 ’73 ’74 ’75 ’76 ’77 ’78 ’79 ’80 ’81 ’82 ’83 ’84 ’85 ’86 ’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03
of experienced investment Year
professionals with a keen Source: Thomson/InvestmentView
understanding of market history, Past performance does not guarantee future results. The Standard & Poor’s
dynamics and economic cycles. 500 Index is an unmanaged group of large company stocks. It is not available
for direct investment.
2 AXP® Portfolio Builder Series I nv e s t o r G u i d e 3

4. Asset allocation
and diversification matter.
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
A look at asset class REAL INT’L INT’L INT’L SMALL CAP LARGE-CAP BONDS SMALL-CAP SMALL-CAP INT’L INT’L LARGE-CAP REAL LARGE-CAP LARGE-CAP SMALL-CAP REAL SMALL-CAP BONDS SMALL CAP
ESTATE ESTATE ESTATE
performance over time. 21.89%
STOCKS
56.72%
STOCKS
69.94%
STOCKS
24.93%
VALUE
29.47%
GROWTH
35.92%
8.96% GROWTH
51.19%
VALUE
29.14%
STOCKS
32.94%
STOCKS
8.06%
VALUE
38.36% 37.04%
VALUE
35.18%
GROWTH
38.71%
GROWTH
43.10% 31.04%
VALUE
14.02%
10.25% GROWTH
48.54%
The chart shows how different BONDS LARGE-CAP DIVERSIFIED LARGE-CAP INT’L MID-CAP LARGE-CAP HIGH YIELD MID-CAP SMALL-CAP REAL LARGE-CAP LARGE-CAP SMALL-CAP INT’L LARGE-CAP SMALL-CAP REAL REAL SMALL-CAP
VALUE
15.15% GROWTH PORTFOLIO GROWTH STOCKS STOCKS GROWTH BONDS STOCKS VALUE ESTATE GROWTH GROWTH VALUE STOCKS GROWTH VALUE ESTATE ESTATE
32.85% 20.31% 5.31% 28.59% 26.25% -0.26% 46.18% 16.35% 23.84% 2.66% 37.18% 23.12% 31.69% 20.33% 33.16% 22.81% 12.36% 3.60% 46.03%
asset classes have performed
LARGE-CAP MID-CAP LARGE-CAP LARGE-CAP LARGE-CAP LARGE-CAP SMALL-CAP HIGH YIELD LARGE-CAP LARGE-CAP MID-CAP LARGE-CAP LARGE-CAP LARGE-CAP INT’L BONDS BONDS HIGH YIELD MID-CAP
HIGH YIELD
over the past 20 years. A VALUE
10.10%
STOCKS
32.01%
VALUE
19.98%
BONDS
4.99%
VALUE
23.16%
VALUE
25.19%
VALUE
-8.08%
VALUE
41.70%
BONDS
15.75%
VALUE
18.07%
GROWTH
2.62%
STOCKS
34.45%
VALUE
21.64%
GROWTH
30.49%
VALUE
15.63%
STOCKS
27.30%
11.63% 8.44% BONDS
-1.37%
STOCKS
40.06%
diversified portfolio generally HIGH YIELD
BONDS
LARGE-CAP REAL
ESTATE
BONDS SMALL-CAP SMALL-CAP HIGH YIELD
BONDS
MID-CAP REAL HIGH YIELD
BONDS
DIVERSIFIED
PORTFOLIO
SMALL-CAP SMALL-CAP MID-CAP MID-CAP
STOCKS
MID-CAP MID-CAP HIGH YIELD
BONDS
SMALL-CAP
VALUE
REAL
VALUE 2.75% GROWTH GROWTH STOCKS ESTATE GROWTH VALUE STOCKS STOCKS STOCKS ESTATE
9.70% 31.52% 19.74% 20.37% 20.17% -9.59% 41.51% 15.28% 17.12% 0.24%
0.95% 31.04% 21.37% 29.02% 10.09% 17.71% 8.26% 5.28% -11.43% 36.18%
had less volatile returns during
MID-CAP DIVERSIFIED DIVERSIFIED LARGE-CAP DIVERSIFIED HIGH YIELD SMALL-CAP MID-CAP DIVERSIFIED BONDS DIVERSIFIED LARGE-CAP DIVERSIFIED
DIVERSIFIED DIVERSIFIED
INT’L SMALL-CAP MID-CAP DIVERSIFIED MID-CAP LARGE-CAP DIVERSIFIED INT’L
STOCKS PORTFOLIO PORTFOLIO VALUE PORTFOLIO BONDS PORTFOLIO PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
GROWTH VALUE STOCKS 8.68% PORTFOLIO VALUE
the past two decades than a STOCKS
7.86%
VALUE
31.01% 18.19% 2.58%
STOCKS
19.82%
PORTFOLIO
16.40%
19.24%
STOCKS
-11.49% 41.27% 13.58% 16.52% -1.03% 25.75% 19.00% 20.37% 13.98% 7.01% -1.87% -11.74%
STOCKS
35.28%
portfolio invested in just one DIVERSIFIED
DIVERSIFIED
PORTFOLIO
PORTFOLIO
SMALL-CAP
GROWTH
HIGH YIELD
BONDS
LARGE-CAP
VALUE
DIVERSIFIED
PORTFOLIO
BONDS
14.53%
DIVERSIFIED
PORTFOLIO
DIVERSIFIED
PORTFOLIO
DIVERSIFIED
PORTFOLIO
REAL
ESTATE
SMALL-CAP
VALUE
DIVERSIFIED
PORTFOLIO
DIVERSIFIED
PORTFOLIO
REAL
ESTATE
DIVERSIFIED
PORTFOLIO
LARGE-CAP
VALUE
DIVERSIFIED
DIVERSIFIED
PORTFOLIO
PORTFOLIO
LARGE-CAP
VALUE
LARGE-CAP
VALUE
DIVERSIFIED
PORTFOLIO
5.69%
7.96% 30.97% 17.45% 0.50% 17.71%
19.12% -11.77% 33.08% 11.00% 25.16% 17.05% 19.67% 8.06% 7.35% 1.14% 33.58%
15.46% -1.55% -5.59% -15.52%
asset class.
SMALL-CAP DIVERSIFIED LARGE-CAP MID-CAP REAL SMALL-CAP SMALL-CAP LARGE-CAP MID-CAP LARGE-CAP HIGH YIELD HIGH YIELD SMALL-CAP HIGH YIELD HIGH YIELD HIGH YIELD MID-CAP MID-CAP LARGE-CAP
SMALL CAP
VALUE PORTFOLIO GROWTH STOCKS ESTATE VALUE GROWTH VALUE STOCKS VALUE BONDS BONDS GROWTH BONDS BONDS BONDS STOCKS STOCKS VALUE
GROWTH
2.27% 29.87% 15.36% 0.22% 17.48% 12.43% -17.41% 24.55% 14.29% -1.98% 19.17% 11.35% 12.95% 1.87% 2.30% -5.86% -5.62% -16.19% 30.03%
7.77%
An effective asset allocation
MID-CAP HIGH YIELD BONDS REAL HIGH YIELD INT’L SMALL-CAP REAL SMALL-CAP MID-CAP BONDS INT’L LARGE-CAP
strategy provides several powerful STOCKS BONDS 15.27% ESTATE BONDS STOCKS VALUE ESTATE
BONDS
7.40% GROWTH STOCKS 18.47%
SMALL-CAP
GROWTH
HIGH YIELD
BONDS
SMALL-CAP
GROWTH
BONDS
-0.83%
INT’L
STOCKS
SMALL-CAP
GROWTH STOCKS GROWTH
1.43% 25.64% -6.59% 12.53% 10.80% -21.77% 23.84% 13.36% -2.07% 11.26% 12.76% 1.24% -13.96% -9.23% -17.52% 29.75%
advantages to your investment plan.
Higher Return
LARGE-CAP BONDS SMALL-CAP SMALL-CAP LARGE-CAP REAL INT’L BONDS LARGE-CAP BONDS SMALL-CAP REAL INT’L BONDS SMALL-CAP SMALL-CAP LARGE-CAP LARGE-CAP LARGE-CAP HIGH YIELD
GROWTH 22.10% VALUE VALUE GROWTH ESTATE STOCKS 16.00% GROWTH 9.75% GROWTH ESTATE STOCKS 9.66% VALUE VALUE GROWTH GROWTH GROWTH BONDS
-0.95% 7.41% -7.11% 11.27% 2.72% -23.20% 4.99% -2.43% 12.24% 6.36% -6.45% -1.49% -22.42% -20.42% -27.88% 28.97%
■ Reduces risk By dividing your money
among multiple asset classes, you increase SMALL-CAP REAL SMALL-CAP SMALL-CAP BONDS HIGH YIELD REAL INT’L INT’L LARGE-CAP BONDS INT’L BONDS INT’L REAL REAL SMALL-CAP INT’L SMALL-CAP BONDS
GROWTH ESTATE GROWTH GROWTH STOCKS ESTATE ESTATE
the probability that a portion of your -15.83% 7.02% 3.58% -10.48%
7.89% BONDS
0.83%
ESTATE
-23.44%
STOCKS
12.50%
STOCKS
-11.85%
GROWTH
2.87%
-2.92%
11.55%
3.63% STOCKS
2.06% -17.00% -2.57%
GROWTH
-22.44%
STOCKS
-22.61%
GROWTH
-30.26%
4.10%
money is invested in a higher performing
asset class.
Sources: Lipper, Inc. and Thomson/InvestmentView and the Far East, weighted by capitalization. The Russell Small Cap Value Index broadly than prices of higher quality bonds. Risk of principal and income is also
■ Enhances the consistency of portfolio The diversified portfolio shown above reflects an equal weighted combination contains Russell 2000 securities with lower price-to-book ratios and the Russell greater than with higher quality securities.
of the Russell 1000® Growth and Russell 1000® Value Indices, Lehman Brothers Small Cap Growth Index contains those Russell 2000 securities with higher
returns Allocating assets across a variety price-to-book ratios. The Russell Mid Cap Index consists of the smallest 800
Past performance does not guarantee future results. The above performance is
Aggregate Bond Index, MSCI EAFE Index, Russell Mid-Cap Index, each of the not intended to represent any American Express fund. It is not possible to invest
of asset types helps smooth the effect of Lehman Brothers High Yield Bond Index, Russell 2000 Growth Index, Russell companies in the Russell 1000 Index as ranked by total market capitalization.
directly in any of the unmanaged indices shown above. All performance
wide performance swings in any 2000 Value Index and Wilshire REIT Index. Illustration assumes quarterly The Lehman High Yield Bond Index covers the universe of fixed rate,
shown assumes reinvestment of dividends or interest and does not include the
portfolio rebalancing. non-investment grade debt and includes both corporate and non-corporate
one segment. expenses of managing a mutual fund.
sectors. The Lehman Brothers Aggregate Bond Index is comprised of
Every investor has unique goals and tolerance for risk. By sharing your goals corporate, U.S. Government, mortgage-backed and Yankee bonds with an Diversification helps you spread risk throughout your portfolio, so investments
■ Helps you stay on course With an asset with your financial advisor, together you can create a risk-sensitive asset average maturity of approximately 10 years. The Wilshire REIT Index is an that do poorly may be balanced by others that do relatively better. Diversification
allocation strategy that's right for you. unmanaged group of publicly-traded real estate investment trusts. is not a guarantee of overall portfolio profit.
allocation plan in place, you can resist
The Russell 1000 Growth Index measures the performance of the growth subset Stocks of medium- and small-sized companies may be subject to more abrupt
making emotional decisions during of the Russell 1000® Index, which is comprised of the largest 1,000 companies or erratic price movements than stocks of larger companies. Stock prices of
extreme market highs or lows. in the U.S. These companies have higher price-to-book ratios and higher established companies that pay dividends may be less volatile than the stock
forecasted growth values. The Russell 1000 Value Index measures the market as a whole. There are special risk considerations associated with
performance of those Russell 1000 companies with lower price-to-book ratios international investing related to market, currency, economic, political and
and lower forecasted growth values. The MSCI EAFE Index is designed to other factors. Higher yield corporate "junk" bond prices may fluctuate more
measure the performance of the developed stock markets of Europe, Australia
4 AXP® Portfolio Builder Series I nv e s t o r G u i d e 5

5. Six mutual funds with a full range of
investment objectives and risk/reward profiles.
AXP Portfolio Builder Series Disciplined asset allocation Built-in diversification What is the
streamlines the investment The knowledgeable and experienced professionals on AXP Portfolio Builder Series provides access to Capital Markets Committee?
decision-making process, the American Express Capital Markets Committee domestic equity investment styles and sectors, global
guide each portfolio’s asset allocation to make and international equities and a mix of bond sectors. The Capital Markets
providing a clear plan for a Committee includes:
these decisions.
lifetime of asset allocation. Through investments in both American Express® Funds
In a sense, it’s like having your own team of economists and American Express® Partners Funds, AXP Portfolio ■ David M. Joy
It’s a series of six mutual funds and portfolio managers as you and your advisor strive to Builder Series offers an investment opportunity that Vice President,
meet your financial goals. capitalizes on the experience and resources of many of Capital Markets Strategy
that offers you:
the industry’s most respected firms. ■ Ted Truscott
■ Disciplined asset allocation Chief Investment Officer
■ Built-in diversification
Convenient, efficient decision-making ■ Dan Laufenberg
■ Convenient, efficient decision-making
Vice President and
AXP Portfolio Builder Series: Chief U.S. Economist
By adding stocks to your portfolio you increase return potential while raising risk.
■ Requires much less paperwork than building a portfolio fund ■ Senior investment professionals and
AXP Portfolio Builder Series covers the risk/return spectrum by fund portfolio managers
■ Eliminates the need to manually reallocate your portfolio
100% Stocks The group meets regularly to review
U.S. and global economic and
AXP Portfolio Builder Series
80% Stocks and investment conditions, and discuss the
20% Fixed Income may be appropriate for investors:
relative attractiveness of equities and
65% Stocks and ■ Seeking a convenient way to build a long-term asset
35% Fixed Income
fixed income securities within various
allocation plan
sectors, markets and countries. The
Higher Return
50% Stocks and ■ Looking for a home for rollover distributions from either
50% Fixed Income consensus opinion of the Capital
an employer-sponsored retirement plan or an Individual
Markets Committee is published
35% Stocks and Retirement Account (IRA)
65% Fixed Income quarterly as the Capital Markets
■ Searching for an efficient way to invest a lump sum, such as
Outlook, which is available from your
an inheritance or proceeds from the sale of real estate
20% Stocks and American Express financial advisor or
80% Fixed Income
on americanexpress.com.
Higher Risk
Past performance is not a guarantee of future results. Percentages used reflect the neutral target asset allocation point for each AXP Portfolio Builder
fund, as shown on pages 8 and 9. These hypothetical illustrations are not intended to represent the return or risk profile of any AXP Portfolio Builder fund.
Diversification helps you spread risk throughout your portfolio, so investments that do poorly may be balanced by others that do relatively better.
Diversification is not a guarantee of overall portfolio profit.
6 AXP® Portfolio Builder Series I nv e s t o r G u i d e 7

6. Fund Profiles
AXP® Portfolio Builder AXP® Portfolio Builder AXP® Portfolio Builder AXP® Portfolio Builder AXP® Portfolio Builder AXP® Portfolio Builder
Conservative Fund Moderate Conservative Fund Moderate Fund Moderate Aggressive Fund Aggressive Fund Total Equity Fund
Risk Level: Low Risk Level: Medium to Low Risk Level: Medium Risk Level: Medium Risk Level: Medium to High Risk Level: High
10% 5%
20%
20% 35%
70% 60% 35% 50% 50% 65% 80% 100%
■ Stock Funds 20% ■ Stock Funds 35% ■ Stock Funds 50% ■ Stock Funds 65% ■ Stock Funds 80% ■ Stock Funds 100%
Large-, mid-, and small-cap Large-, mid- and small-cap Large-, mid- and small-cap Large-, mid- and small-cap Large-, mid- and small-cap Large-, mid- and small-cap
Growth and value Growth and value Growth and value Growth and value Growth and value Growth and value
International developed markets International International International International International
Emerging markets Emerging markets Emerging markets Emerging markets Emerging markets
■ Bond Funds 70%
Government ■ Bond Funds 60% ■ Bond Funds 50% ■ Bond Funds 35% ■ Bond Funds 20%
Investment grade corporate Government Government Government Government
Multi-sector Investment grade corporate Investment grade corporate Investment grade corporate Investment grade corporate
High yield corporate High yield corporate High yield corporate High yield corporate
■ Cash 10% Global Global Global Global
Multi-sector Multi-sector Multi-sector Multi-sector
■ Cash 5%
Investment objective: Investment objective: Investment objective: Investment objective: Investment objective: Investment objective:
■ Seeks the highest level of total ■ Seeks the highest level of ■ Seeks the highest level of total ■ Seeks the highest level of total ■ Seeks the highest level of total ■ Seeks the highest level of total
return consistent with a total return consistent with a return consistent with a return consistent with a return consistent with an return consistent with a very
conservative level of risk. moderate level of risk. moderate level of risk. moderate aggressive level of risk. aggressive level of risk. aggressive level of risk.
■ Invests primarily in fixed ■ Invests primarily in fixed income ■ Invests in a balance of fixed ■ Invests primarily in equities ■ Invests primarily in equities, ■ Invests entirely in equities
income securities. securities with a moderate income securities and equities. with a complement of fixed with a small complement of under normal market conditions.
complement of equities. income securities. fixed income securities.
May be suitable for investors with: May be suitable for investors with: May be suitable for investors with: May be suitable for investors with: May be suitable for investors with: May be suitable for investors with:
■ A low tolerance for risk and a ■ Retirement needs and are not ■ A desire to grow their portfolio, ■ A desire to maximize the growth ■ A desire to seek maximum
■ A modest need for income, but comfortable taking significant but with some mitigation of risk potential of their portfolio and growth potential.
need for current income. are willing to accept some degree
risk, but want modest growth. through exposure to fixed are comfortable with meaningful
of risk. ■ Education saving needs.
■ Education saving needs. income securities. short-term risk.
■ Limited need for current
■ Education saving needs. ■ A need for an all equity portfolio
■ A desire to balance more income and want to grow ■ Minimal need for current ■ Minimal need for current to complement existing fixed
aggressive holdings in ■ A desire to balance more their investment. income and want their income and want their
income investments.
retirement plans or aggressive holdings in investment to grow significantly. investment to grow significantly.
other vehicles. retirement plans or
■ Education saving needs.
other vehicles.
■ Education saving needs. ■ Education saving needs.
AXP Portfolio Builder funds will invest in the types of stock and bond funds listed above. These stock and bond funds may invest in asset classes not specifically
listed here. Pie charts represent neutral allocation for each fund. Actual asset allocation will vary over time depending on market conditions.
8 AXP® Portfolio Builder Series I nv e s t o r G u i d e 9