American Express Financial Corp. said today that it has launched two new mutual funds – an equity product and a fixed-income product – that it will distribute through its network of financial advisors.

In launching the funds, the company says it is responding to investors’ concerns after weathering a year of particularly dismal markets and gut-wrenching losses due to poor allocation of assets.

"If there’s one thing 2001 taught investors, it’s that diversification can help your portfolio," said Paula Meyer, who is a managing director at American Express Funds.

The new funds, she said, are designed to help investors diversify their long-term investments by focusing on mid-cap value and mortgage-backed securities.

The two products have been labeled the AXP Mid Cap Value Fund and the AXP U.S. Government Mortgage Fund. They will be part of American Express Funds, a family of 55 retail products with about $80 billion in assets under management.

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