AXP(SM)
Tax-Free
Money Fund
1999 SEMIANNUAL REPORT
(icon of) padlock
The goal of AXP Tax-Free Money Fund is to provide as high a level of current
income exempt from federal income tax as is consistent with liquidity and
stability of principal.
Distributed by American Express Financial Advisors Inc.
AMERICAN EXPRESS Financial Advisors
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Stability Without Taxes
Everyone needs to have a cash reserve to cover unexpected expenses. But where to
keep it? It's easy to find an investment that provides stability and ready
access to your money, but there's usually a drawback: You have to pay taxes on
the interest the money earns.But there is an alternative -- Tax-Free Money Fund.
The interest it pays is generally free from federal taxes. The result: A cash
reserve that can let you keep the tax-exempt income it earns.
CONTENTS
From the Chairman 3
From the Portfolio Manager 3
Fund Facts 5
Financial Statements 6
Notes to Financial Statements 9
Investments in Securities 13
<PAGE>
(picture of) Arne H. Carlson
Arne H. Carlson
Chairman of the board
From the Chairman
American Express(R) Funds held shareholder meetings in June 1999. Shareholders
approved all of the proposals advanced by management. Among the proposals were:
o The election of Board members and the selection of KPMG LLP as independent
auditor.
o Change in the Fund name from "IDS" to "AXP."
o A change in the investment management services agreement.
o Changes with respect to fundamental investment policies.
No other business was presented at the meeting, which was concluded by a report
to shareholders from the Investment Department of American Express Financial
Corporation.
Thanks to all of you for your effort in reviewing the proxy material and voting
your proxies.
Arne H. Carlson
(picture of) Terry Fettig
Terry Fettig
Portfolio Manager
From the Portfolio Manager
AXP Tax-Free Money Fund's yield was largely unchanged during the first half of
the fiscal year (January through June 1999), reflecting relatively stable
short-term interest rates. The Fund's net asset value remained at $1 during the
six months, providing shareholders with continued stability of principal in
addition to a tax-free return.
For the seven-day period ended June 30, 1999, the Fund provided
an annualized simple yield of 3.13% and an annualized compound yield of 3.18%.
These are equal to 4.35% simple and 4.42% compound yields for an investor in the
28% federal income-tax bracket.
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(Investors should keep in mind that 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
share, it is possible to lose money by investing in the Fund. Investors also
should keep in mind that, under federal law, some notes issued in the tax-free
securities market are subject to the alternative minimum tax, or AMT. To
eliminate any federal income-tax liabilities for investors who may be subject to
the AMT requirement, the Fund does not invest in such issues.)
FED RAISES RATES
Despite ongoing, solid economic growth, inflation remained remarkably low over
the six months. As a result, short-term interest rates barely budged until the
end of June. It was then that the Federal Reserve Board increased short-term
interest rates by a quarter percentage point. The increase reflected the Fed's
desire to cool down the economy slightly to head off a potential rise in the
rate of inflation.
Changes to the portfolio were largely confined to a shift in its average
maturity -- from about 60 days in January to about 30 days at period-end. This
fluctuation in maturity is largely a result of seasonal supply factors in the
short-term, tax-free market. As usual, about half the portfolio consisted of
variable-rate demand notes, with the rest split about evenly between fixed-rate
notes and commercial paper.
Looking to the second half of the fiscal year, although the Fed did raise
interest rates in late June, it also announced that it was neutral on whether it
would follow up with additional increases. Given that, as of this writing in
mid-July, we have yet to see clear indications that inflation is about to
undergo a meaningful rise, the Fed could maintain its neutral stance in
the months ahead. If so, the Fund's yield would remain relatively stable.
Terry Fettig
<PAGE>
Fund Facts
6-month performance
(All figures per share)
Net asset value (NAV)
June 30, 1999 $1.00
Dec. 31, 1998 $1.00
Increase $ --
Distributions -- Jan. 1, 1999 - June 30, 1999
From income $0.01
From capital gains $ --
Total distributions $0.01
Total return* +1.29%
7-day yield +3.13%**
*The total return is a hypothetical investment in the Fund with all
distributions reinvested.
**The yield quotation more closely reflects the current earnings of the
money market fund than the total return quotation.
<PAGE>
Financial Statements
Statement of assets and liabilities
AXP Tax-Free Money Fund, Inc.
June 30, 1999 (Unaudited)
Assets
Investments in securities, at value (Note 1)
(identified cost $187,512,534) $187,512,534
Cash in bank on demand deposit 1,041,232
Accrued interest receivable 914,821
-------
Total assets 189,468,587
-----------
Liabilities
Dividends payable to shareholders 105,257
Payable for investment securities purchased 12,590,790
Accrued investment management services fee 1,485
Accrued transfer agency fee 526
Accrued administrative services fee 144
------
Total liabilities 12,698,202
----------
Net assets applicable to outstanding capital stock $176,770,385
============
Represented by
Capital stock-- $.01 par value (Note 1) $ 1,767,754
Additional paid-in capital 175,006,467
Undistributed net investment income 42
Accumulated net realized gain (loss) (3,878)
------
Total-- representing net assets applicable to outstanding $176,770,385
capital stock ============
Shares outstanding 176,775,410
-----------
Net asset value per share of outstanding capital stock 1.00
See accompanying notes to financial statements.
<PAGE>
Statement of operations
AXP Tax-Free Money Fund, Inc.
Six months ended June 30, 1999 (Unaudited)
Investment income
Income:
Interest $2,694,084
----------
Expenses (Note 2):
Investment management services fee 269,405
Transfer agency fee 91,724
Administrative services fees and expenses 27,613
Compensation of board members 3,884
Custodian fees 11,987
Printing and postage 43,712
Registration fees 37,575
Audit fees 10,250
Other 2,926
-------
Total expenses 499,076
Earnings credits on cash balances (Note 2) (22,685)
-------
Total net expenses 476,391
Investment income (loss) -- net 2,217,693
---------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on security transactions (Note 3) 2,841
-----
Net increase (decrease) in net assets resulting from operations $2,220,534
==========
See accompanying notes to financial statements.
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<CAPTION>
Statements of changes in net assets
AXP Tax-Free Money Fund, Inc.
June 30, 1999 Dec. 31, 1998
Six months ended Year ended
(Unaudited)
Operations and distributions
<S> <C> <C>
Investment income (loss)-- net $ 2,217,693 $ 4,692,082
Net realized gain (loss) on security transactions (Note 3) 2,841 --
----- ---------
Net increase (decrease) in net assets resulting from operations 2,220,534 4,692,082
--------- ---------
Distributions to shareholders from:
Net investment income (2,217,651) (4,692,121)
---------- ----------
Capital share transactions at constant $1 net asset value
Proceeds from sales of shares 194,132,540 343,999,939
Net asset value of shares issued in reinvestment of distributions 2,174,869 4,513,497
Payments for redemptions of shares (192,780,125) (327,618,650)
------------ ------------
Increase (decrease) in net assets from capital share transactions 3,527,284 20,894,786
--------- ----------
Total increase (decrease) in net assets 3,530,167 20,894,747
Net assets at beginning of period 173,240,218 152,345,471
----------- -----------
Net assets at end of period $ 176,770,385 $173,240,218
============ ============
Undistributed net investment income $ 42 $ --
------------- ------------
See accompanying notes to financial statements.
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Notes to Financial Statements
AXP Tax-Free Money Fund, Inc.
(Unaudited as to June 30, 1999)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 (as amended), as
a diversified, open-end management investment company. The Fund has 10 billion
authorized shares of capital stock. The Fund invests primarily in short-term
bonds and notes issued by or on behalf of state or local governmental units.
The Fund's significant accounting policies are summarized below:
Use of estimates
Preparing financial statements that conform to generally accepted accounting
principles requires management to make estimates (e.g., on assets and
liabilities) that could differ from actual results.
Valuation of securities
Pursuant to Rule 2a-7 of the 1940 Act, all securities are valued daily at
amortized cost, which approximates market value, in order to maintain a constant
net asset value of $1 per share.
Federal taxes
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute all of its
taxable income to shareholders. No provision for income or excise taxes is thus
required.
Dividends to shareholders
Dividends from net investment income, declared daily and payable monthly, are
reinvested in additional shares of the Fund at net asset value or payable in
cash.
Other
Security transactions are accounted for on the date securities are purchased or
sold. Interest income, including level-yield amortization of premium and
discount, is accrued daily.
2. EXPENSES
The 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 the Fund's average daily net assets
in reducing percentages from 0.31% to 0.24% annually. Effective July 1, 1999,
the management fee will increase to a range of 0.36% to 0.25% of average daily
net assets annually.
Under an Administrative Services Agreement, the Fund pays AEFC a fee for
administration and accounting services at a percentage of the Fund's average
daily net assets in reducing percentages from 0.03% to 0.02% annually.
Additional administrative service expenses paid by the Fund are office expenses,
consultants' fees and compensation of officers and employees. Under this
agreement, the Fund also pays 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 Fund and approved by the board.
Under a separate Transfer Agency Agreement, American Express Client Service
Corporation (AECSC) maintains shareholder accounts and records. The Fund pays
AECSC an annual fee of $24 per shareholder account for this service. Under terms
of a prior agreement that ended Jan. 31, 1999, the Fund paid a transfer agency
fee at an annual rate per shareholder account of $20.
During the six months ended June 30, 1999, the Fund's custodian and transfer
agency fees were reduced by $22,685 as a result of earnings credits from
overnight cash balances.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities aggregated $324,650,492
and $308,280,330, respectively, for the six months ended June 30, 1999. Realized
gains and losses, if any, are determined on an identified cost basis.
4. BANK BORROWINGS
The Fund has a revolving credit agreement with U.S. Bank, N.A., whereby the Fund
is permitted to have bank borrowings for temporary or emergency purposes to fund
shareholder redemptions. The 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
the Fund to participate with other American Express 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. The 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. The Fund had no borrowings outstanding during the six months ended June
30, 1999.
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5. FINANCIAL HIGHLIGHTS
The table below shows certain important financial information for evaluating the
Fund's results.
Fiscal period ended Dec. 31,
Per share income and capital changesa
1999c 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of perio $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income (loss) .01 .03 .03 .03 .03
Less distributions:
Dividends from net investment income (.01) (.03) (.03) (.03) (.03)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
Ratios/supplemental data
Net assets, end of period (in millions) $177 $173 $152 $157 $146
Ratio of expenses to average daily net assetsb .57%d .54% .55% .55% .58%
Ratio of net investment income (loss)
to average daily net assets 2.55%d 2.93% 3.13% 2.94% 3.19%
Total return 1.29% 2.94% 3.18% 2.95% 3.24%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Effective fiscal year 1996, expense ratio is based on total expenses of the
Fund before reduction of earnings credits on cash balances.
c Six months ended June 30, 1999 (Unaudited).
d Adjusted to an annual basis.
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<CAPTION>
Investments in Securities
AXP Tax-Free Money Fund, Inc.
June 30, 1999 (Unaudited)
(Percentages represent value of investments compared to net assets)
Municipal notes
Issuer(b) Annualized Amount Value(a)
yield on date payable at
of purchase maturity
Alabama (4.9%)
Columbia County Industrial Development Pollution Control
Revenue Bonds (Alabama Power) V.R. Series 1995C
<S> <C> <C> <C> <C> <C>
10-01-22 3.40% $8,550,000(c) $8,550,000
Columbia County Industrial Development Pollution Control
Revenue Bonds (Alabama Power) V.R. Series 1995D
10-01-22 3.85 200,000(c) 200,000
Total 8,750,000
Alaska (3.4%)
Valdez Marine Terminal Refunding Revenue Bonds
(Mobil Alaskan Pipeline) V.R. Series 1993A
11-01-03 3.30 1,000,000(c) 1,000,000
Valdez Marine Terminal Revenue Bonds
(Exxon Pipeline) V.R. Series 1993A
12-01-33 3.40 5,050,000(c) 5,050,000
Total 6,050,000
Arizona (9.9%)
Maricopa County (Arizona Public Service)
(Bank of America) V.R.
05-01-29 3.40 2,000,000(c) 2,000,000
Maricopa County Pollution Control Revenue Bonds
(Arizona Public Service) V.R.
05-01-29 3.40 800,000(c) 800,000
Maricopa County Pollution Control Revenue Bonds
(Arizona Public Service) V.R. Series 1994A
05-01-29 3.40 2,300,000(c) 2,300,000
Maricopa County Pollution Control Revenue Bonds
(Southern California Edison) C.P. Series 1999E
07-06-99 3.35 1,000,000 1,000,000
08-03-99 3.05 2,500,000 2,500,000
Maricopa County Pollution Control Revenue Bonds
V.R. Series 1994C
05-01-29 3.45 $1,850,000 $1,850,000
Salt River Agricultural Improvement & Power District C.P.
07-09-99 2.90 1,000,000 1,000,000
07-14-99 2.85 1,000,000 1,000,000
10-13-99 3.15 1,000,000 1,000,000
Salt River Agricultural Improvement & Power District C.P.
Series 1999B
07-12-99 3.30 2,000,000 2,000,000
School District T.A.N.
Certificate of Participation Series 1998A
07-30-99 4.10 2,000,000 2,000,816
Total 17,450,816
California (0.9%)
Los Angeles County T.R.A.N.
06-30-00 3.97 1,500,000 1,509,840
Florida (0.7%)
Municipal Power Agency C.P.
02-01-00 3.30 1,155,000 1,155,000
Georgia (4.8%)
Burke County Development Authority Pollution Control
Adjustable Bonds (Georgia Power) Vogtle V.R. 3rd Series
09-01-25 3.50 400,000(c) 400,000
Burke County Development Authority Pollution Control
Revenue Bonds (Georgia Power) Vogtle V.R. 2nd Series
07-01-24 3.50 1,300,000(c) 1,300,000
04-01-25 3.50 375,000(c) 375,000
Burke County Development Authority Pollution Control
Revenue Bonds (Georgia Power) Vogtle V.R. 3rd Series
09-01-25 3.50 1,000,000(c) 1,000,000
Burke County Development Authority Pollution Control
Revenue Bonds (Georgia Power) Vogtle V.R. 5th Series
07-01-24 3.85 300,000(c) 300,000
Monroe County Pollution Control Revenue Bonds
(Gulf Power) V.R. 2nd Series
09-01-24 3.50 1,500,000(c) 1,500,000
Putnam County Development Authority Pollution Control
Revenue Bonds (Georgia Power) V.R. 2nd Series
09-01-29 3.50 3,600,000(c) 3,600,000
Total 8,475,000
Idaho (1.7%)
State T.R.A.N. Series 1999
06-30-00 4.22 3,000,000 3,024,570
Illinois (6.2%)
Chicago General Obligation Tender Notes
Series 1999
01-27-00 2.95 2,000,000 2,000,000
Development Finance Authority Pollution Control
Revenue Bonds (Amoco Oil) V.R. Series 1994
11-01-12 3.40 200,000(c) 200,000
Health Facilities (University of Chicago Hospitals)
(MBIA Insured) V.R.
08-01-26 3.50 6,200,000(c,d) 6,200,000
Health Facilities Authority Revenue Bonds
(University of Chicago Hospitals) V.R.
11-15-23 3.50 2,000,000(c) 2,000,000
08-01-26 3.50 600,000(c) 600,000
Total 11,000,000
Indiana (8.9%)
Bond Bank Advanced Funding Notes
2nd Series 1999A
01-19-00 3.49 2,000,000 2,005,716
Indianapolis Public Improvement Bond
Limited Obligation Notes Series 1998G
08-15-99 3.50 2,000,000 2,001,207
Jasper County Pollution Control Revenue Bonds
(Northern Indiana Public Service) V.R.
08-01-10 3.45 200,000(c) 200,000
06-01-13 3.45 5,000,000(c) 5,000,000
Jasper County Pollution Control Revenue Bonds
(Northern Indiana Public Service) V.R. Series 1994C
04-01-19 3.45% $2,500,000(c) $2,500,000
Mount Vernon Pollution Control & Solid Waste Disposal Refunding Revenue Bonds
(General Electric) C.P.
07-08-99 3.40 2,990,000 2,990,000
State Education Facility (University of Notre Dame)
03-01-25 3.70 1,000,000(c) 1,000,000
Total 15,696,923
Iowa (2.3%)
School Cash Anticipation Program
Iowa School Corporation
Warrant Certificate Series 1999A
06-23-00 3.97 2,000,000 2,014,575
School Cash Anticipation Program
Iowa School Corporation
Warrant Certificate Series 1999B
01-28-00 3.49 2,000,000 2,005,943
Total 4,020,518
Kentucky (2.4%)
Jefferson County Pollution Control Revenue Bonds
(Louisville Gas & Electric) C.P. V.R.D.N. Series 1993
07-14-99 3.30 1,300,000 1,300,000
08-04-99 3.05 3,000,000 3,000,000
Total 4,300,000
Maryland (1.1%)
Montgomery County C.P. B.A.N.
07-07-99 3.60 2,000,000 2,000,000
Massachusetts (1.4%)
State Variable Refunding Bonds
V.R. Series 1998B
09-01-16 3.60 2,500,000(c) 2,500,000
Michigan (6.8%)
Detroit City District School Aid Notes
(Wayne County) Series 1998
07-01-99 4.50 1,000,000 1,000,000
Detroit City District School Notes
Series 1999
06-01-00 3.97 2,000,000 2,014,224
Municipal Bond Authority Revenue Notes Series D-1
08-27-99 4.25 1,000,000 1,001,009
Regents of the University Hospital Refunding Revenue Bonds
V.R. Series 1992A
12-01-19 3.45 1,400,000(c) 1,400,000
Regents of the University Hospital Revenue Bonds
V.R. Series 1992A
12-01-19 3.45 400,000(c) 400,000
Regents of the University Hospital Revenue Bonds
V.R. Series 1995A
12-01-27 3.45 4,700,000(c) 4,700,000
Regents of the University of Michigan
C.P. Series 1999B
07-12-99 3.35 1,000,000 1,000,000
University Hospital Refunding Revenue Bonds
V.R. Series 1992A
12-01-19 3.45 500,000(c) 500,000
Total 12,015,233
Minnesota (8.7%)
Becker Pollution Control Revenue Bonds
(Northern States Power) C.P. Series 1999A
07-13-99 3.20 3,000,000 3,000,000
07-15-99 3.20 2,000,000 2,000,000
09-08-99 3.15 1,000,000 1,000,000
Rochester Health Care Facility Revenue Bonds
(Mayo Clinic) Series 1999A
07-08-99 3.15 1,000,000 1,000,000
Rochester Health Care Facility Revenue Bonds
(Mayo Clinic) Series 1999B
07-07-99 3.15 2,000,000 2,000,000
School District Tax & Aid Anticipation Borrowing Program
Certificates
02-03-00 3.00 3,000,000 3,000,000
School District Tax & Aid Anticipation Borrowing Program
Series 1998
08-27-99 3.63 1,400,000 1,400,000
Southern Minnesota Municipal Power C.P. Series 1999B
08-05-99 3.30 2,000,000 2,000,000
Total 15,400,000
Mississippi (1.5%)
Jackson County Port Facilities Refunding Revenue Bonds
(Chevron) V.R. Series 1993
06-01-23 3.40 200,000(c) 200,000
Jackson County Port Facilities Revenue Bonds
(Chevron) V.R.
06-01-23 3.40 2,400,000(c) 2,400,000
Total 2,600,000
Missouri (0.1%)
Washington University Health & Education
Facilities Authority Series 1996A
09-01-30 3.45 200,000(c) 200,000
Nevada (1.1%)
Las Vegas Valley Water District
General Obligation Bonds
(Lt Water) C.P. Series 1999A
07-06-99 3.10 2,000,000 2,000,000
New Jersey (1.1%)
South Jersey T.R.A.N.
11-03-99 2.95 2,000,000 2,000,000
New Mexico (1.7%)
State T.R.A.N. Series 1999
06-30-00 3.97 3,000,000 3,022,290
New York (10.3%)
Long Island Power Authority Electric Revenue Bonds
Variable Sub Series 5
05-01-33 3.40 3,600,000(c) 3.600,000
Long Island Power Authority Electric Revenue Bonds
Variable Sub Series 6
05-01-33 3.85 1,300,000(c) 1,300,000
Metropolitan Transit Authority Special Obligation
B.A.N. C.P. Series 1999B
07-22-99 3.05 2,000,000 2,000,000
New York City Municipal Water Finance Authority
V.R. Series 1994C
06-15-23 3.70 1,600,000(c) 1,600,000
New York City Municipal Water Finance Authority Water & Sewer System Revenue
Bonds V.R.
06-15-22 3.70 2,300,000(c) 2,300,000
06-15-23 3.70 7,300,000(c) 7,299,999
Total 18,099,999
North Carolina (2.3%)
Medical Care Community Hospital Revenue Bonds
(Duke University Hospital) V.R. Series 1985B
06-01-15 3.65 2,000,000(c) 2,000,000
Medical Care Community Hospital Revenue Bonds
(Duke University Hospital) V.R. Series 1985C
06-01-15 3.65 2,000,000(c) 2,000,000
Total 4,000,000
Ohio (1.0%)
State Air Quality Development Revenue Bonds
(Cincinnati Gas & Electric) V.R. Series 1995A
09-01-30 3.35 1,800,000(c) 1,800,000
Oregon (0.9%)
Portland B.A.N. Series 1999A
12-15-99 3.69 1,500,000 1,503,696
Pennsylvania (2.6%)
Commonwealth System of Higher Education
(University of Pittsburgh) Asset Notes
06-30-00 3.98 1,000,000 1,006,250
Delaware County Industrial Development Authority
Airport Facility Revenue Bonds (UPS) V.R.
12-01-15 3.80 700,000(c) 700,000
State Higher Education Facilities Authority Refunding Revenue
Bonds (Carnegie Mellon) Series 1995B V.R.
11-01-27 3.45 700,000(c) 700,000
State Higher Education Facilities Authority Revenue Bonds
(Carnegie Mellon University) V.R. Series 1995C
11-01-29 3.45 2,200,000(c) 2,200,000
Total 4,606,250
Tennessee (1.1%)
Shelby County B.A.N. C.P. Series 1998A
07-08-99 3.30 2,000,000 2,000,000
Texas (6.9%)
Houston T.R.A.N. Series 1999
06-30-00 4.21 1,000,000 1,009,180
Port Arthur Naval District of Jefferson
Pollution Control Revenue Bonds (Texaco)
10-01-24 3.45 5,600,000(c) 5,600,000
San Antonio Electric & Gas System
C.P. Series 1999A
07-09-99 3.40 3,500,000 3,500,000
State T.R.A.N. Series 1998
08-31-99 4.49 2,000,000 2,003,489
Total 12,112,669
Utah (1.1%)
State General Obligation Highway
C.P. Series 1997B
08-16-99 3.15 2,000,000 2,000,000
Virginia (4.2%)
Roanoke Hospital Revenue Bonds
(Carilion Health System) V.R. Series 1997A
07-01-27 3.50 7,500,000(c) 7,500,000
Washington (0.6%)
State General Obligation Bonds V.R. Series 1996B
06-15-20 3.40 1,000,000(c) 1,000,000
Wisconsin (1.4%)
Kenosha University School District 1 T.R.A.N.
Series 1998B
10-29-99 3.00 1,500,000 1,500,000
Milwaukee Short-term School R.A.N.
08-26-99 4.25 1,000,000 1,001,070
Total 2,501,070
Wyoming (4.1%)
Kemmerer Pollution Control Revenue Bonds
(Exxon) V.R.
11-01-14 3.40 300,000(c) 300,000
Lincoln County Pollution Control Revenue Bonds
(Exxon) V.R. Series 1984A
11-01-14 3.80 300,000(c) 300,000
Lincoln County Pollution Control Revenue Bonds
(Exxon) V.R. Series 1984C
11-01-14 3.80 100,000(c) 100,000
Lincoln County Pollution Control Revenue Bonds
(Exxon) V.R. Series 1984D
11-01-14 3.80 200,000(c) 200,000
State General Fund T.R.A.N.
06-27-00 3.98 3,000,000 3,018,660
Sublette County (Exxon) V.R. Series 1984
11-01-14 3.40 2,100,000(c) 2,100,000
Uinta County Pollution Control Revenue Bonds
Chevron USA V.R.
12-01-22 3.40 1,200,000(c) 1,200,000
Total 7,218,660
Total investments in securities
(Cost: $187,512,534)(e) $187,512,534
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Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) The following abbreviations may be used in the portfolio descriptions:
B.A.N. -- Bond Anticipation Note
C.P. -- Commercial Paper
R.A.N. -- Revenue Anticipation Note
T.A.N. -- Tax Anticipation Note
T.R.A.N. -- Tax & Revenue Anticipation Note
V.R. -- Variable Rate
V.R.D.B. -- Variable Rate Demand Bond
V.R.D.N. -- Variable Rate Demand Note
(c) The Fund is entitled to receive principal amount from issuer or corporate
guarantor, if indicated in parentheses, after a day or a week's notice. The
maturity date disclosed represents the final maturity. However, for purposes of
Rule 2a-7, maturity is the later of the next put or interest rate reset date.
Interest rate varies to reflect current market conditions; rate shown is the
effective rate on June 30, 1999.
(d) The following abbreviation is used in portfolio descriptions to identify the
insurer of the issue:
MBIA -- Municipal Bond Investors Assurance
(e) Also represents the cost of securities for federal income tax purposes at
June 30, 1999.
<PAGE>
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