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Prospectus and Statement of Additional Information Supplement
January 12, 1995
Retirement Annuity Mutual Funds - Symphony (October 28, 1994)
S-6550 C (10/94)
IDS Life Capital Resource Fund, Inc.
IDS Life Capital Resource Fund
IDS Life Managed Fund, Inc.
IDS Life Special Income Fund, Inc.
SHAREHOLDER MEETINGS
At the regular meetings held on November 9, 1994, shareholders of
the funds listed above approved the following proposals:
1. New Investment Management Services Agreement ("IMS Agreement")
with IDS Financial Corporation ("IDS") Shareholders approved a new
IMS Agreement with IDS. For the non-money market funds, the fee
will no longer be based in part on the assets of all non-money
market funds in the IDS MUTUAL FUND GROUP (the "GROUP"). Instead,
the fee rate will be based on the average daily net assets of each
individual fund, decreasing as the fund increases in size.
Assets Capital
(Billions) Resource
First $1.0 0.630%
Next 1.0 0.615
Next 1.0 0.600
Next 3.0 0.585
Over 6.0 0.570
Assets Special
(Billions) Income
First $1.0 0.610%
Next 1.0 0.595
Next 1.0 0.580
Next 3.0 0.565
Next 3.0 0.550
Over 9.0 0.535
Assets
(Billions) Managed
First $0.50 0.630%
Next 0.50 0.615
Next 1.0 0.600
Next 1.0 0.585
Next 3.0 0.570
Over 6.0 0.550
2. Name Change. IDS Life Capital Resource Fund, Inc., the
corporate entity composed of three underlying funds, including IDS
Life Capital Resource Fund, changed its name to IDS Life Investment
Series, Inc. The name of the underlying funds will remain
unchanged.<PAGE>
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3. Master-Feeder Investment Policy. At some future time, the
Board of Directors (the "Board") may determine that it is in the
best interest of the Fund and its shareholders to create what is
known as a master/feeder fund structure. This structure allows
several investment companies and other investment groups, including
pension plans and trust accounts, to have their investment
portfolio managed as a combined pool called the master fund. The
purpose of the structure is to achieve operational efficiencies.
Shareholders approved a new investment policy permitting the
structure if the Board decides it is appropriate.
The section of the prospectus titled "How the fund is organized" is
modified by adding the following: At some time in the future, the
Board of the Fund may decide to convert to a master/feeder
structure. If the Board makes that decision, the fund would seek
to achieve its goal by investing all of its assets in another
investment company with the same goal as the fund, rather than
investing directly in a portfolio of securities.
4. Changes in Fundamental Policies. Shareholders changed the
status of a number of policies from fundamental (changeable only
with shareholder approval) to nonfundamental (changeable by the
Board without shareholder vote). Policies changed include those
regarding: buying on margin or selling short; pledging assets as
collateral; investing in issuers with less than 3 years of
operating history; investing in other investment companies;
investing for purposes of exercising control or management;
investing in oil, gas or mineral exploration or development
programs; and investing in illiquid securities.
In addition, shareholders approved a revision in the fundamental
policy on making loans to permit the fund to make cash loans up to
5% of its total assets; and a revision in the policy on investing
in real estate to clarify that the Fund may invest in securities or
other instruments backed by real estate or securities of companies
engaged in the real estate business; and a revision in the policy
on investing in commodities to clarify that the Fund may invest in
securities or other instruments backed by, or whose value is
derived from, physical commodities.
NAME CHANGES OF ADVISER, DISTRIBUTOR AND CUSTODIAN
Effective January 1, 1995, the name of IDS Financial Corporation
will be changed to American Express Financial Corporation. The
name of IDS Financial Services Inc. will be changed to American
Express Financial Advisors Inc. IDS Trust Company, which serves as
custodian, will change its name to American Express Trust Company.
*Valid until the next prospectus update.
