American Express Launches Three New Mutual Funds.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--June 19, 2003 American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses. (R) Funds diversifies fixed income product line American Express Financial Corporation, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of American Express Company (NYSE NYSE See: New York Stock Exchange :AXP The brand name Digital gave to its first family of Alpha-based computers. In 1998, Digital was acquired by Compaq. See Alpha. ), has launched three new mutual funds to provide further differentiation and diversification options within the American Express Funds fixed income product line. The funds are available through American Express financial advisors, American Express Brokerage and select American Express retirement plans. The funds are: -- AXP(R) Limited Duration Fund: Team managed, led by James Jackson, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. - Liquid Assets Cash, or property immediately convertible to cash, such as Securities, notes, life insurance policies with cash surrender values, U.S. savings bonds, or an account receivable. Sector Leader. The fund invests in a diversified blend of intermediate-term (0-10 years) investment grade securities, including securities issued by the U.S. Government, corporate securities and mortgage- and asset-backed securities. -- AXP(R) Core Bond Fund: Team managed, led by Tom Murphy, CFA - Investment Grade Credit Sector Leader. The fund invests in a diversified blend of intermediate-term investment grade securities included in the Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. Aggregate Bond Index. -- AXP(R) Income Opportunities Fund: Team managed, led by Brian Lavin, CFA - member, high yield sector team. The fund invests primarily in income-producing debt securities, preferred stocks and convertible securities, with an emphasis on the higher rated segment of the high-yield market. "With Michelle Keeley joining American Express as head of fixed income last year and our efforts to build around new and existing investment talent, we have fully implemented a new organizational model within our fixed income group that leverages best practices across portfolios. These three new mutual funds take advantage of the new investment teams and further differentiate our taxable fixed income product line," said Paula R Meyer, Senior Vice President -Mutual Funds and Certificates, American Express Financial Advisors. Fund Characteristics AXP(R) Limited Duration Fund -- Portfolio management - Led by James Jackson, CFA - Liquid Assets Sector Leader. -- The fund seeks to provide shareholders with a level of current income consistent with preservation of capital Preservation of Capital An investment strategy whose primary goal is to prevent the loss of an investment's total value. Notes: For investors using the capital preservation strategy to achieve their goal, they must ensure their portfolio is producing a return that is at . -- Benchmark - Lehman Brothers Intermediate Aggregate Index. -- The fund invests in a diversified blend of intermediate-term (0-10 years) investment grade securities, including securities issued by the U.S. Government, corporate securities and mortgage- and asset-backed securities. -- The fund will not invest in securities rated below investment grade at time of investment. -- Management targets an average duration of 2 to 4 years. -- The fund will have a duration between AXP Federal Income Fund and AXP U.S. Government Mortgage Fund. -- Available in A, B, C and Y shares. AXP(R) Core Bond Fund -- Portfolio management - Led by Tom Murphy, CFA - Investment Grade Credit Sector Leader. -- The fund seeks to provide shareholders with a high total return through current income and capital appreciation. -- Benchmark - Lehman Brothers Aggregate Bond Index Lehman Brothers Aggregate Bond Index A benchmark index made up of the Lehman Brothers Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment-grade quality or better, have at least one year to . -- The fund invests primarily in a diversified blend of intermediate-term investment grade securities issued by the U.S. Government, corporate securities and mortgage- and asset-backed securities. -- The fund will not invest in securities rated below investment grade at time of purchase. -- Management targets an average duration of 4 to 6 years. -- The fund will have a duration between AXP U.S. Government Mortgage Fund and AXP Bond Fund. -- Available in A, B, C and Y shares. AXP(R) Income Opportunities Fund -- Portfolio management - Led by Brian Lavin, CFA - member, high yield sector team -- The fund seeks to provide shareholders with a high total return through current income and capital appreciation. -- Benchmark - Merrill Lynch U.S. High Yield Cash Pay BB-B Rated Constrained Index. -- The fund invests primarily in income-producing debt securities, preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and convertible securities, with an emphasis on the higher rated segment of the high-yield market. -- The fund will purchase only securities rated B or above or unrated securities believed to be of the same quality. -- The fund will invest in a higher quality tier of the high yield market than AXP Extra Income Fund and will likely produce a yield between AXP Bond Fund and AXP Extra Income Fund. -- Available in A, B, C and Y shares. According to Meyer, "These new funds are examples of our ongoing efforts to build upon American Express' core strengths as a leading asset management organization and provide a complete range of investment options. Through the leadership of Michelle Keeley, we've added products that reinforce the American Express Funds fixed-income lineup. With interest rates at more than 40-year lows, our clients are demanding fixed-income solutions they can count on. We're pleased to expand our offerings in bond sectors that have historically provided attractive returns in a multitude of rate environments." American Express Funds consists of 64 retail mutual funds with more than $61 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . The funds provide investors with a wide spectrum of investment options, including growth, growth and income, income, international, tax-free income tax-free income The income received but not subject to income taxes. For example, interest from most municipal bonds is free of federal income taxes and often from state and local income taxes as well. Compare tax-deferred income, tax-sheltered income. and index choices. American Express Funds can trace its history back to 1940. Today, with offices in Minneapolis, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Boston, Cambridge, Mass., San Diego, Tokyo, Singapore and London, American Express Financial Corporation, the investment manager for American Express Funds, owns, manages or administers about $228 billion in assets. American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against , business services, insurance and international banking. American Express Financial Advisors Inc. Member NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). and SIPC (Simply Interactive PC) An earlier umbrella term from Microsoft and Intel for a PC that works like a home appliance. For example, it has a sealed case, uses external connectors for expansion and boots in just a couple of seconds. . American Express Company is separate from American Express Financial Advisors Inc. and is not a broker-dealer. For more complete information on mutual funds, including fees and expenses, call (800) AXP-FUND for a prospectus. Read it carefully before you invest or send money. |
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