American Express Unveils Two Funds

February 14, 2002 ( - Some retirement plan participants, whose employers are American Express clients, will have a wider array of investment choices following the launch of two new funds.

The new funds are:

  • the AXP Mid Cap Value Fund, which will focus on companies with stock trading below its normal share value, and
  • the AXP US Government Mortgage Fund, which will have at least 80% of assets in mortgage-backed securities and government issues

The funds will also be available though the group’s financial advisors and the company’s brokerage operation.

According to a press announcement from American Express, the equity fund will:

  • measure its performance against the Russell Mid Cap Value Index,
  • allocate at least 80% to mid-cap companies, with market caps of between $300 million and $13.4 billion,
  • take a maximum position of 5% of position for any stock, and
  • comprise 70 to 90 holdings

According to American Express, the fixed-income fund will:

  • use the Lehman Brothers Mortgage-Based Index as a benchmark,
  • put at least 80% of assets into of AAA-rated mortgage-backed securities, including GNMA, FNMA and FHLMC, the remainder to be invested in other AAA-rated debt