<PAGE>
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- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM N-1A
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. __
Post-Effective Amendment No. 42 (File No. 2-54516) /X/
and/or
REGISTRATION STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940 / /
Amendment No. 33 (File No. 811-2591) /X/
------------------------
IDS MONEY MARKET SERIES, INC.
IDS Tower 10, Minneapolis, Minnesota 55440-0010
Leslie L. Ogg
901 S. Marquette Avenue, Suite 2810,
Minneapolis, MN 55402-3268
(612) 330-9283
------------------------
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:
It is proposed that this filing will become effective (check appropriate box)
/ / immediately upon filing pursuant to paragraph (b)
/X/ on March 20, 1995 pursuant to paragraph (b)
/ / 60 days after filing pursuant to paragraph (a)(i)
/ / on date pursuant to paragraph (a)(i)
/ / 75 days after filing pursuant to paragraph (a)(ii)
/ / on (date) pursuant to paragraph (a)(ii) of rule 485.
If appropriate, check the following box:
/X/ This post-effective amendment designates a new effective
date for a previously filed post-effective amendment.
------------------------
REGISTRANT HAS REGISTERED AN INDEFINITE NUMBER OR AMOUNT OF SECURITIES UNDER THE
SECURITIES ACT OF 1933 PURSUANT TO SECTION 24F OF THE INVESTMENT COMPANY ACT OF
1940. REGISTRANT'S RULE 24F-2 NOTICE FOR ITS MOST RECENT FISCAL YEAR WAS FILED
ON OR ABOUT SEPTEMBER 29, 1994.
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<PAGE>
CROSS REFERENCE SHEET
FOR IDS CASH MANAGEMENT FUND SHOWING THE LOCATION IN ITS PROSPECTUS AND THE
STATEMENT OF ADDITIONAL INFORMATION FOR IDS MONEY MARKET SERIES, INC. OF THE
INFORMATION CALLED FOR BY THE ITEMS ENUMERATED IN PARTS A AND B OF FORM N-1A.
Negative answers omitted from prospectus are so indicated.
<TABLE>
<CAPTION>
PART A
- ---------------------------------------------------------------------------------
ITEM NO. SECTION IN PROSPECTUS
- ------------ ------------------------------------------------------------------
<C> <S>
1 Cover page of prospectus
2 The fund in brief; Sales charge and fund expenses
3(a) Financial highlights
(b) NA
(c) Performance
(d) Financial highlights
4(a) The fund in brief; Investment policies and risks; How the fund is
organized
(b) Investment policies and risks
(c) Investment policies and risks
5(a) Directors and officers; Directors and officers of the fund
(listing)
(b) How the fund is organized; About American Express Financial
Corporation
(b)(i) About American Express Financial Corporation -- General
information
(b)(ii) Investment manager and transfer agent
(b)(iii) Investment manager and transfer agent
(c) Portfolio manager
(d) The fund in brief
(e) Investment manager and transfer agent
(f) Distributor
(g) Investment manager and transfer agent
5A(a) *
(b) *
6(a) Shares; Voting rights
(b) NA
(c) NA
(d) Voting rights
(e) Cover page; Special shareholder services
(f) Dividends and capital gain distributions; Reinvestments
(g) Taxes
7(a) Distributor
(b) Key terms; Valuing assets
(c) How to buy, exchange or sell shares
(d) How to buy shares
(e) NA
(f) Distributor
8(a) How to sell shares
(b) NA
(c) How to buy shares: Three ways to invest
(d) How to buy, exchange or sell shares: Redemption policies --
"Important..."
9 None
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PART B
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ITEM NO. SECTION IN SAI
- ------------ ------------------------------------------------------------------
<C> <S>
10 Cover page of SAI
11 Table of Contents
12 NA
13(a) Additional Investment Policies; all appendices except Dollar-Cost
Averaging
(b) Additional Investment Policies
(c) Additional Investment Policies
(d) Portfolio Transactions
14(a) Directors and officers of the fund;** Directors and Officers
(b) Directors and Officers
(c) Directors and Officers
15(a) NA
(b) NA
(c) Directors and Officers
16(a)(i) How the fund is organized; About American Express Financial
Corporation**
(a)(ii) Agreements: Investment Management Services Agreement, Plan and
Agreement of Distribution
(a)(iii) Agreements: Investment Management Services Agreement
(b) Agreements: Investment Management Services Agreement
(c) NA
(d) Agreements: Administrative Services Agreement, Shareholder Service
Agreement
(e) NA
(f) Agreements: Distribution Agreement
(g) NA
(h) Custodian; Independent Auditors
(i) Agreements: Transfer Agency Agreement; Custodian
17(a) Portfolio Transactions
(b) Brokerage Commissions Paid to Brokers Affiliated with American
Express Financial Corporation
(c) Portfolio Transactions
(d) Portfolio Transactions
(e) Portfolio Transactions
18(a) Shares and Voting rights**
(b) NA
19(a) Investing in the Fund
(b) Valuing Fund Shares; Investing in the Fund
(c) NA
20 Taxes
21(a) Agreements: Distribution Agreement
(b) Agreements: Distribution Agreement
(c) NA
22(a) Performance Information (for money market funds only)
(b) Performance Information (for all funds except money market funds)
23 Financial Statements
<FN>
- ------------------------
*Designates information is located in annual report.
**Designates page number in prospectus.
</TABLE>
<PAGE>
AN INVESTMENT IN THE IDS
FUND IS NEITHER INSURED CASH
NOR GUARANTEED BY THE MANAGEMENT
U.S. GOVERNMENT. THERE FUND
CAN BE NO ASSURANCE
THAT THE FUND WILL BE PROSPECTUS
ABLE TO MAINTAIN A SEPT. 29, 1994 AS
STABLE NET ASSET VALUE REVISED MARCH 20, 1995
OF $1 PER SHARE. [GRAPHIC]
This prospectus
contains facts that can THE GOAL OF IDS CASH
help you decide if the MANAGEMENT FUND, A PART
fund is the right OF IDS MONEY MARKET
investment for you. SERIES, INC., IS TO
Read it before you PROVIDE MAXIMUM CURRENT
invest and keep it for INCOME CONSISTENT WITH
future reference. LIQUIDITY AND STABILITY
OF PRINCIPAL. THE FUND
Additional facts about INVESTS IN MONEY MARKET
the fund are in a SECURITIES.
Statement of Additional American Express
Information (SAI), Shareholder Service
filed with the P.O. Box 534
Securities and Exchange Minneapolis, MN
Commission. The SAI, 55440-0534
dated Sept. 29, 1994 as 612-671-3733
revised March 20, 1995, TTY: 800-846-4852
is incorporated here by
reference. For a free
copy, contact American
Express Shareholder
Service.
THESE SECURITIES HAVE
NOT BEEN APPROVED OR
DISAPPROVED BY THE
SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE
SECURITIES COMMISSION,
NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION
OR ANY STATE SECURITIES
COMMISSION PASSED UPON
THE ACCURACY OR
ADEQUACY OF THIS
PROSPECTUS. ANY
REPRESENTATION TO
THE CONTRARY IS A
CRIMINAL OFFENSE.
SHARES IN THE FUND
ARE NOT DEPOSITS OR
OBLIGATIONS OF, OR
GUARANTEED OR
ENDORSED BY, ANY
BANK, AND SHARES ARE
NOT FEDERALLY INSURED
BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION,
THE FEDERAL RESERVE
BOARD, OR ANY
OTHER AGENCY.
<PAGE>
- ------------------------------------------
TABLE OF CONTENTS
- ------------------------------------------
THE FUND IN BRIEF
Goal 3P
Types of fund investments 3P
Manager and distributor 3P
Portfolio manager 3P
Alternative sales arrangements 3P
- ------------------------------------------
SALES CHARGE AND FUND EXPENSES
- ------------------------------------------
PERFORMANCE
Financial highlights 6P
Yield 7P
Key terms 8P
- ------------------------------------------
INVESTMENT POLICIES AND RISKS
Facts about investments and their
risks 9P
Alternative investment option 10P
Valuing assets 10P
- ------------------------------------------
HOW TO BUY, EXCHANGE OR SELL SHARES
Alternative sales arrangements 11P
How to buy shares 13P
How to exchange shares 16P
How to sell shares 16P
Waivers of the sales charge 21P
- ------------------------------------------
SPECIAL SHAREHOLDER SERVICES
Services 23P
Quick telephone reference 23P
- ------------------------------------------
DISTRIBUTIONS AND TAXES
Dividend and capital gain
distributions 24P
Reinvestments 24P
Taxes 25P
- ------------------------------------------
HOW THE FUND IS ORGANIZED
Shares 27P
Voting rights 27P
Shareholder meetings 27P
Directors and officers 27P
Investment manager and transfer
agent 29P
Distributor 30P
- ------------------------------------------
ABOUT AMERICAN EXPRESS FINANCIAL CORPORATION
General information 31P
2P
<PAGE>
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The fund in brief
GOAL
IDS Cash Management Fund seeks to provide shareholders with
maximum current income consistent with liquidity and stability of
principal. Because any investment involves risk, achieving this
goal cannot be guaranteed. Only shareholders can change the goal.
TYPES OF FUND INVESTMENTS
The fund is a diversified mutual fund that invests in money
market instruments, such as marketable debt securities issued by
the U.S. government or its agencies or instrumentalities, bank
certificates of deposit, bankers' acceptances, letters of credit
and commercial paper.
MANAGER AND DISTRIBUTOR
The fund is managed by American Express Financial Corporation, a
provider of financial services since 1894. American Express
Financial Corporation currently manages more than $37 billion in
assets for the IDS MUTUAL FUND GROUP. Shares of the fund are sold
through American Express Financial Advisors Inc., a wholly
owned subsidiary of American Express Financial Corporation.
PORTFOLIO MANAGER
Terry Fettig joined American Express Financial Corporation in
1986 and serves as portfolio manager. He has managed this fund
since April 1993. From 1986 to 1992 he was a fixed income
securities analyst. From 1992 to 1993 he was an associate
portfolio manager. He also serves as portfolio manager of IDS
Tax-Free Money Fund and IDS Life Moneyshare Fund.
ALTERNATIVE SALES ARRANGEMENTS
The fund offers its shares in three classes. Class A shares are
available with no sales charge and no annual distribution (12b-1)
fee. Class B shares are sold with a contingent deferred sales
charge (CDSC) and are subject to a 12b-1 fee. Class Y shares are
sold with no sales charge and no 12b-1 fee to qualifying
institutional investors. As a general rule, an investor should
purchase Class A shares of the fund. The fund offers Class B and
Class Y shares to facilitate exchanges between classes of these
shares in other IDS funds.
3P
<PAGE>
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Sales charge and fund expenses
When you buy shares of Class A or Class Y, you pay no sales
charge. When you buy shares of Class B there is no initial sales
charge, although your shares may be subject to a CDSC on
redemptions made within six years. Class B shares also are
subject to a 12b-1 fee. Shareholder transaction expenses are
incurred directly by an investor on the redemption of fund
shares. Operating expenses are paid out of fund assets for each
class of shares. Operating expenses are reflected in the fund's
daily share price and dividends, and are not charged directly to
shareholder accounts.
-------------------------------------------------------------
SHAREHOLDER TRANSACTION EXPENSES
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS Y
<S> <C> <C> <C>
Maximum sales charge on
purchases (as a percentage of
offering price)............... 0% 5% 0%
-----------------------------------------------------------
</TABLE>
-------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES*
(% OF AVERAGE DAILY NET ASSETS):
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS Y
<S> <C> <C> <C>
-----------------------------------------------------------
Management fee............... 0.31% 0.31% 0.31%
-----------------------------------------------------------
12b-1 fee.................... 0.00% 0.75% 0.00%
-----------------------------------------------------------
Other expenses**............. 0.48% 0.49% 0.48%
-----------------------------------------------------------
Total........................ 0.79% 1.55% 0.79%
<FN>
*Expenses for Class A are based on actual expenses for the
last fiscal year, restated to reflect current fees. Expenses
for Class B and Class Y are estimated based on the restated
expenses for Class A, except that the 12b-1 fee and transfer
agent fee (under other expenses) for Class B are based on
agreements for that class.
**Other expenses include an administrative services fee, a
transfer agent fee and other non-advisory expenses.
</TABLE>
4P
<PAGE>
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EXAMPLE: Suppose for each year for the next 10 years, fund
expenses are as above and annual return is 5%. If you sold your
shares at the end of the following years, for each $1,000
invested, you would pay total expenses of:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years**
<S> <C> <C> <C> <C>
------------------------------------------------------------------------
Class A...................... $8 $25 $44 $98
------------------------------------------------------------------------
Class B...................... $66 $89 $105 $165
------------------------------------------------------------------------
Class B*..................... $16 $49 $85 $165
------------------------------------------------------------------------
Class Y...................... $8 $25 $44 $98
<FN>
*Assuming Class B shares are not redeemed at the end of the
period.
**Based on conversion of Class B shares to Class A shares after
8 years.
</TABLE>
THIS EXAMPLE DOES NOT REPRESENT ACTUAL EXPENSES, PAST OR FUTURE.
ACTUAL EXPENSES MAY BE HIGHER OR LOWER THAN THOSE SHOWN. During
the fiscal year ended July 31, 1994, American Express Financial
Corporation voluntarily reimbursed the fund for certain expenses.
If American Express Financial Corporation had not reimbursed the
fund for operating expenses, the total paid by the fund would
have been 0.97% of its average net assets. American Express
Financial Corporation intends to continue to voluntarily
reimburse expenses so that the operating expenses for Class A do
not exceed 0.95% of its average net assets. Because Class B pays
annual distribution (12b-1) fees, long-term shareholders may
indirectly pay an equivalent of more than a 6.25% sales charge,
the maximum permitted by the National Association of Securities
Dealers.
5P
<PAGE>
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Performance
FINANCIAL HIGHLIGHTS
FISCAL YEAR ENDED JULY 31,
- --------------------------------------------------------------
PER SHARE INCOME AND CAPITAL CHANGES*
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
Net asset value $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
beginning of year
INCOME FROM INVESTMENT OPERATIONS:
------------------------------------------------------------------------------------------------------------
Net investment .03 .02 .04 .07 .08 .08 .06 .06 .07 .09
income
LESS DISTRIBUTIONS:
------------------------------------------------------------------------------------------------------------
Dividends from net (.03) (.02) (.04) (.07) (.08) (.08) (.06) (.06) (.07) (.09)
investment income
------------------------------------------------------------------------------------------------------------
Net asset value, end $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
of year
</TABLE>
- --------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
Net assets, end of $1,154 $1,053 $1,230 $1,655 $1,617 $1,392 $1,136 $852 $896 $887
year (in millions)
------------------------------------------------------------------------------------------------------------
Ratio of expenses to .94%** .94%** .91% .77% .74% .75% .69% .71% .71% .67%
average daily net
assets
------------------------------------------------------------------------------------------------------------
Ratio of net income 2.61% 2.36% 3.84% 6.55% 7.81% 8.42% 6.53% 5.64% 6.99% 8.85%
to average daily net
assets
------------------------------------------------------------------------------------------------------------
Total return 2.6% 2.4% 3.8% 6.7% 7.9% 8.7% 6.7% 5.7% 7.2% 9.1%
<FN>
* For a share outstanding throughout the year. Rounded to the
nearest cent.
** During the fiscal years ended July 31, 1993 and July 31,
1994, IDS voluntarily reimbursed the fund for a portion of
its expenses. Had IDS not done so, the ratio of expenses to
average daily net assets would have been 0.97%.
</TABLE>
The information in this table has been audited by KPMG Peat
Marwick LLP, independent auditors. The independent auditors'
report and additional information about the performance of the
fund are contained in the fund's annual report which, if not
included with this prospectus, may be obtained without charge.
Information on Class B and Class Y shares is not included because
no shares of those classes were outstanding for the periods
shown.
6P
<PAGE>
- --------------------------------------------------------------------------------
YIELD
The fund's annualized simple yield for the seven days ended July
29, 1994, was 3.77% and its annualized compound yield was 3.84%.
The fund calculates annualized simple and compound yields based
on a seven-day period.
Past yields should not be considered an indicator of future
yields.
7P
<PAGE>
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Performance
-------------------------------------------------------------
KEY TERMS
NET ASSET VALUE (NAV)
Value of a single fund share. For each class, it is the total
market value of all of a fund's investments and other assets
attributable to that class, less any liabilities attributable to
that class, divided by the number of shares of that class
outstanding.
When you buy shares, you pay the NAV. When you sell shares, the
price you receive is the NAV minus any applicable sales charge.
The NAV is calculated at the close of business, normally 3 p.m.
Central time, each business day (any day the New York Stock
Exchange is open).
CONSTANT NET ASSET VALUE
Although there is no guarantee, the fund will use its best
efforts to maintain a constant net asset value of $1 per share.
INVESTMENT INCOME
Interest earned on securities held by the fund.
CAPITAL GAINS OR LOSSES
Sometimes small short-term gains or losses are realized when
securities are sold.
YIELD
Annualized simple and compound yield calculations are based on a
seven-day period.
8P
<PAGE>
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Investment policies and risks
The fund will limit its investments to those that are denominated
in U.S. dollars, are of high quality and present minimal credit
risk. The fund will maintain a dollar-weighted average portfolio
maturity of 90 days or less and will not purchase any security
with a remaining maturity of more than 13 months.
The various types of investments the portfolio manager uses to
achieve investment performance are described in more detail in
the next section and in the SAI.
FACTS ABOUT INVESTMENTS AND THEIR RISKS
MONEY MARKET INSTRUMENTS: The fund invests in short-term
government securities, bank obligations, commercial paper and
repurchase agreements. Except for the exception listed below, the
commercial paper the fund invests in must be rated in the highest
category by at least two national rating services or, if unrated,
be of comparable quality as determined by the board of directors.
The fund may invest up to 5% of its total assets in commercial
paper receiving the second highest rating or in unrated paper
determined to be of comparable quality.
DEBT SECURITIES: The fund may invest in negotiable certificates
of deposit (CDs), fixed-time deposits, bankers' acceptances and
letters of credit of U.S. banks, branches of domestic banks
located outside the United States and U.S. branches of foreign
banks. The fund may invest in CDs issued by savings and loans and
CDs of foreign banks issued outside the United States. (These CDs
are commonly referred to as Eurodollar CDs.) The fund also may
invest in marketable securities issued or guaranteed as to
principal and interest by the U.S. government, its agencies or
instrumentalities. Some of these securities are not direct
obligations of the U.S government and consequently are not backed
by the full faith and credit of the government.
CONCENTRATION: Depending on market conditions and the
availability of other securities, the fund may invest more than
25% of its total assets in U.S. banks, U.S. branches of foreign
banks and U.S. government securities. Investments in banks may be
affected by economic or regulatory developments in the banking
industry and by the concentration of bank loan participations.
9P
<PAGE>
- ---------------------------------------------------------------------------
Investment policies and risks
FOREIGN INVESTMENTS: Investments in foreign banks and branches of
domestic banks outside the United States involve certain risks.
Domestic banks are required to maintain specified levels of
reserves, are limited in the amounts they can loan to a single
borrower and are subject to other regulations designed to promote
financial soundness. Not all of these laws and regulations apply
to the foreign branches of domestic banks. Domestic bank
regulations do not apply to foreign banks. Eurodollar CDs and
non-U.S. fixed-time deposits may be subject to political and
economic risks of the countries in which the investments are
made, including the possibility of seizure or nationalization of
foreign deposits, penalties for early withdrawal of time
deposits, imposition of withholding taxes on income,
establishment of exchange controls or adoption of other
restrictions that might affect an investment adversely. The fund
may invest up to 35% of its total assets in foreign investments.
SECURITIES THAT ARE ILLIQUID: Illiquid means the security cannot
be sold quickly in the normal course of business. No more than
10% of the fund's net assets will be held in illiquid securities.
The investment policies described above may be changed by the
board of directors.
ALTERNATIVE INVESTMENT OPTION
In the future, the board of the fund may determine for operating
efficiencies to use a master/feeder structure. Under that
structure, the fund's investment portfolio would be managed by
another investment company with the same goal as the fund, rather
than investing directly in a portfolio of securities.
VALUING ASSETS
The portfolio securities are valued at amortized cost, which
approximates market value, as explained in the SAI. Although the
fund cannot guarantee it will always be able to maintain a
constant net asset value of $1 per share, it will use its best
efforts to do so.
10P
<PAGE>
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How to buy, exchange or sell shares
ALTERNATIVE SALES ARRANGEMENTS
The fund offers three different classes of shares -- Class A,
Class B and Class Y. The primary differences among the classes
are in the sales charge structures and in their ongoing expenses.
These differences are summarized in the table below.
<TABLE>
<CAPTION>
SALES CHARGE AND DISTRIBUTION (12B-1)
FEE OTHER INFORMATION
<S> <C> <C>
----------------------------------------------------------
Class A None
----------------------------------------------------------
Class B No initial sales charge; maximum CDSC of Shares convert to Class A after eight
5%, declines to 0% after six years; years; CDSC waived in certain
distribution fee of 0.75% of daily net circumstances
assets
----------------------------------------------------------
Class Y None Available only to certain qualifying
institutional investors
</TABLE>
CONVERSION OF CLASS B SHARES TO CLASS A SHARES -- Eight calendar
years after Class B shares were originally purchased, Class B
shares will convert to Class A shares and will no longer be
subject to a distribution fee. The conversion will be on the
basis of relative net asset values of the two classes, without
the imposition of any sales charge. Class B shares purchased
through reinvested dividends and distributions will convert to
Class A shares in a pro-rata portion as the Class B shares
purchased other than through reinvestment.
11P
<PAGE>
- ---------------------------------------------------------------------------
How to buy, exchange or sell shares
CONSIDERATIONS IN DETERMINING WHETHER TO PURCHASE CLASS A OR CLASS B SHARES --
As a general rule, an investor should purchase Class A shares of the fund. An
investment in Class B shares is appropriate if you want to make a short-term
investment in a money market fund and then exchange into Class B shares of a
bond or equity fund. Exchanges may be made only between the same class of
shares. If you purchase Class A shares of this fund you would not be able to
exchange into Class B shares of another fund.
IF YOU PURCHASE CLASS A SHARES IF YOU PURCHASE CLASS B SHARES
ONGOING EXPENSES
- - Your shares will have a lower expense - The distribution and transfer
ratio than Class B shares because agent fees for Class B will cause
Class A does not pay a distribution your shares to have a higher
fee and the transfer agent fee for expense ratio and to pay lower
Class A is lower than the fee for dividends than Class A shares.
Class B. As a result, Class A shares After eight years, Class B shares
will pay higher dividends than Class B will convert to Class A shares
shares. and will no longer be subject to
higher fees.
To help you in this analysis, the Example in the "Sales charge and fund
expenses" section of the prospectus illustrates the charges applicable to each
class of shares.
12P
<PAGE>
- --------------------------------------------------------------------------------
CLASS Y SHARES -- Class Y shares are offered to certain
institutional investors. Class Y shares are sold without a
front-end sales charge or a CDSC and are not subject to either a
service fee or a distribution fee. The following investors are
eligible to purchase Class Y shares:
- Qualified employee benefit plans* if the plan:
-- uses a daily transfer recordkeeping service offering
participants daily access to IDS funds and has
-- at least $10 million in plan assets or
-- 500 or more participants; or
-- does not use daily transfer recordkeeping and has
-- at least $3 million invested in funds of the IDS MUTUAL
FUND GROUP or
-- 500 or more participants.
- Trust companies or similar institutions, and charitable
organizations that meet the definition in Section 501(c)(3) of
the Internal Revenue Code.* These must have at least $10 million
invested in funds of the IDS MUTUAL FUND GROUP.
- Nonqualified deferred compensation plans* whose participants
are included in a qualified employee benefit plan described
above.
* Eligibility must be determined in advance by American
Express Financial Advisors. To do so, contact your
financial advisor.
Financial advisors may receive different compensation for selling
Class A, Class B and Class Y shares.
HOW TO BUY SHARES
If you're investing in this fund for the first time, you'll need
to set up an account. Your financial advisor will help you fill
out and submit an application. Once your account is set up, you
can choose among several convenient ways to invest.
IMPORTANT: When opening an account, you must provide your correct
Taxpayer Identification Number (Social Security or Employer
Identification number). See "Distributions and taxes."
When you buy shares for a new or existing account, the price you
pay per share is determined at the close of business on the day
your investment is received and accepted at the Minneapolis
headquarters.
13P
<PAGE>
- ---------------------------------------------------------------------------
How to buy, exchange or sell shares
PURCHASE POLICIES:
- Investments must be received and accepted in the Minneapolis
headquarters on a business day before 3 p.m. Central time to be
included in your account that day and to receive that day's
share price. Otherwise your purchase will be processed the next
business day and you will pay the next day's share price.
- The minimums allowed for investment may change from time to
time.
- Wire orders can be accepted only on days when your bank,
American Express Financial Corporation, the fund and Norwest
Bank Minneapolis are open for business.
- Wire purchases are completed when wired payment is received and
the fund accepts the purchase.
- American Express Financial Corporation and the fund are not
responsible for any delays that occur in wiring funds, including
delays in processing by the bank.
- You must pay any fee the bank charges for wiring.
- The fund reserves the right to reject any application for any
reason.
- If your application does not specify which class of share you
are purchasing, it will be assumed that you are investing in
Class A shares.
14P
<PAGE>
- --------------------------------------------------------------------------------
THREE WAYS TO INVEST
- --------------------------------------------------------------
- --
1
BY REGULAR Send your check and application MINIMUM AMOUNTS
ACCOUNT (or your name and account number Initial investment: $2,000
if you have an established Additional investments: $100
account) to: Account balances: $1,000 *
American Express
Financial Advisors Inc.
P.O. Box 74
Minneapolis, MN 55440-0074
Your financial advisor will help
you with this process.
- --------------------------------------------------------------
- --
2
BY Contact your financial advisor to MINIMUM AMOUNTS
SCHEDULED set up one of the following Initial investments: $2,000
INVESTMENT scheduled plans: Additional investments: $100/mo.
PLAN - automatic payroll deduction Account balances: $1,000
- bank authorization
- direct deposit of
Social Security check
- other plan approved by the
fund
- --------------------------------------------------------------
- --
3
BY WIRE If you have an established If this information is not
account, you may wire money to: included, the order may be
Norwest Bank Minneapolis rejected and all money received
Routing No. 09000019 by the fund, less any costs the
Minneapolis, MN fund or American Express
Attn: Domestic Wire Dept. Financial Corporation incurs,
will be returned promptly.
Give these instructions: MINIMUM AMOUNTS
Credit IDS Account #00-30-015 for Each wire investment: $1,000
personal account # (your account
number) for (your name).
*If your account balance falls below $1,000, you will be asked
in writing to bring it up to $1,000 or establish a scheduled
investment plan. If you don't do so within 30 days, your
shares can be redeemed and the proceeds mailed to you.
15P
<PAGE>
- --------------------------------------------------------------------------------
How to buy, exchange or sell shares
HOW TO EXCHANGE SHARES
You can exchange your shares of the fund at no charge for shares
of the same class of any other publicly offered fund in the IDS
MUTUAL FUND GROUP available in your state. If your initial
investment was in this fund, you can exchange Class A shares of
this fund for Class B shares of another fund. Exchanges into IDS
Tax-Free Money Fund must be made from Class A shares.
If your initial investment was in this fund, and you exchange
into a non-money market fund, you will pay an initial sales
charge if you exchange into Class A and be subject to a
contingent deferred sales charge if you exchange into Class B. If
your initial investment was in Class A shares of a non-money
market fund and you exchange shares into this fund, you may
exchange that amount, including dividends earned on that amount,
without paying a sales charge. For complete information,
including fees and expenses, read the prospectus carefully before
exchanging into a new fund.
If your exchange request arrives at the Minneapolis headquarters
before the close of business, your shares will be redeemed at the
net asset value set for that day. The proceeds will be used to
purchase new fund shares the same day. Otherwise, your exchange
will take place the next business day at that day's net asset
value.
For tax purposes, an exchange represents a sale and purchase and
may result in a gain or loss. However, you cannot create a tax
loss (or reduce a taxable gain) by exchanging from the fund
within 91 days of your purchase. For further explanation, see the
SAI.
HOW TO SELL SHARES
You can sell (redeem) your shares at any time. American Express
Shareholder Service will mail payment within seven days after
receiving your request.
When you sell shares, the amount you receive may be more or less
than the amount you invested. Your shares will be redeemed at net
asset value, minus any applicable sales charge, at the close of
business on the day your request is accepted at the Minneapolis
headquarters. If your request arrives after the close of
business, the price per share will be the net asset value, minus
any applicable sales charge, at the close of business on the next
business day.
A redemption is a taxable transaction. Although the fund attempts
to maintain a stable $1 net asset value, you will have a gain or
loss if the fund's net asset value is more or less than the cost
of your shares. This could affect your tax liability.
16P
<PAGE>
- --------------------------------------------------------------------------------
THREE WAYS TO REQUEST AN EXCHANGE OR SALE OF SHARES
- --------------------------------------------------------------
- --
1
BY LETTER Include in your letter: REGULAR MAIL:
- the name of the fund(s) American Express Shareholder
- the class of shares to be Service
exchanged or redeemed Attn: Redemptions
- your account number(s) (for P.O. Box 534
exchanges, both funds must be Minneapolis, MN 55440-0534
registered in the same EXPRESS MAIL:
ownership) American Express Shareholder
- your Taxpayer Identification Service
Number (TIN) Attn: Redemptions
- the dollar amount or number 733 Marquette Ave.
of shares you want to Minneapolis, MN 55402
exchange or sell
- signature of all registered
account owners
- for redemptions, indicate how
you want your sales proceeds
delivered to you
- any paper certificates of
shares you hold
- --------------------------------------------------------------
- --
2
BY PHONE - The fund and American Express corporate or qualified
American Financial Corporation will retirement accounts unless you
Express honor any telephone exchange request these privileges NOT
Telephone or redemption request apply by writing American
Transaction believed authentic and will Express Shareholder Service.
Service: use reasonable procedures to Each registered owner must sign
800-437-3133 confirm that they are. This the request.
or includes asking identifying - American Express Financial
612-671-3800 questions and tape recording Corporation answers phone
calls. So long as reasonable requests promptly, but you
procedures are followed, may experience delays when
neither the fund nor American call volume is high. If you
Express Financial Corporation are unable to get through,
will be liable for any loss use mail procedure as an
resulting from fraudulent alternative.
requests. - Phone privileges may be
- Phone exchange and redemption modified or discontinued at
privileges automatically any time.
apply to all accounts except
custodial,
17P
<PAGE>
- ---------------------------------------------------------------------------
How to buy, exchange or sell shares
- --------------------------------------------------------------
- --
3
BY DRAFT For Class A only free drafts MINIMUM AMOUNT
are available and can be used Redemption: $100
just like a check to withdraw MAXIMUM AMOUNT
$100 or more from your account. Redemption: $50,000
The shares in your account earn
dividends until they are
redeemed by the fund to cover
your drafts. Most accounts will
automatically receive free
drafts. However, to receive
drafts on qualified or
custodial business accounts,
you must contact American
Express Shareholder Service. A
request form will be supplied
and must be signed by each
registered owner. Your draft
writing privilege may be
modified or discontinued at any
time. If you request a
photocopy of a paid draft you
will be charged $5 per copy.
18P
<PAGE>
- --------------------------------------------------------------------------------
EXCHANGE POLICIES:
- You may make up to three exchanges within any 30-day period,
with each limited to $300,000. These limits do not apply to
certain employee benefit plans or other arrangements through
which one shareholder represents the interests of several.
Exceptions may be allowed with pre-approval of the fund.
- Exchanges must be made into the same class in the new fund.
- If your exchange creates a new account, it must satisfy the
minimum investment amount for new purchases.
- Once we receive your exchange request, you cannot cancel it.
- Shares of the new fund may not be used on the same day for
another exchange.
- If your shares are pledged as collateral, the exchange will be
delayed until written approval is obtained from the secured
party.
- American Express Financial Corporation and the fund reserve the
right to reject any exchange, limit the amount, or modify or
discontinue the exchange privilege, to prevent abuse or adverse
effects on the fund and its shareholders. For example, if
exchanges are too numerous or too large, they may disrupt the
fund's investment strategies or increase its costs.
REDEMPTION POLICIES:
- A "change of mind" option allows you to change your mind after
requesting a redemption and to use all or part of the proceeds
to buy new shares in the same account at the net asset value,
rather than the offering price on the date of a new purchase. If
you reinvest in this manner, any CDSC you paid on the amount you
are reinvesting also will be reinvested in the fund. To take
advantage of this option, send a written request within 30 days
of the date your redemption request was received. Include your
account number and mention this option. This privilege may be
limited or withdrawn at any time, and it may have tax
consequences.
- A telephone redemption request will not be allowed within 30
days of a phoned-in address change.
IMPORTANT: If you request a redemption of shares you recently
purchased by a check or money order that is not guaranteed, the
fund will wait for your check to clear. Please expect a minimum
of 10 days from the date of purchase before a check is mailed to
you. (A check may be mailed earlier if your bank provides
evidence satisfactory to the fund and American Express Financial
Corporation that your check has cleared.)
19P
<PAGE>
- ---------------------------------------------------------------------------
How to buy, exchange or sell shares
THREE WAYS TO RECEIVE PAYMENT WHEN YOU SELL SHARES
- --------------------------------------------------------------
- --
1
BY REGULAR - Mailed to the address on record.
OR EXPRESS - Payable to names listed on the account.
MAIL
NOTE: The express mail delivery charges you pay will vary
depending on the courier you select.
- --------------------------------------------------------------
- --
2
BY WIRE - Minimum wire redemption: $1,000.
- Request that money be wired to your bank.
- Bank account must be in the same ownership as the IDS fund
account.
NOTE: Pre-authorization required. For instructions, contact your
financial advisor or American Express Shareholder Service.
- --------------------------------------------------------------
- --
3
BY - Minimum payment: $50.
SCHEDULED - Contact your financial advisor or American Express Shareholder
PAYOUT Service to set up regular payments to you on a monthly,
PLAN bimonthly, quarterly, semiannual or annual basis.
- Buying new shares while under a payout plan may be
disadvantageous because of the sales charges.
20P
<PAGE>
- --------------------------------------------------------------------------------
WAIVERS OF THE SALES CHARGE
CLASS B -- CONTINGENT DEFERRED SALES CHARGE ALTERNATIVE
Where a CDSC is imposed on a redemption, it is based on the
amount of the redemption and the number of calendar years,
including the year of purchase, between purchase and redemption.
The following table shows the declining scale of percentages that
apply to redemptions during each year after a purchase:
<TABLE>
<CAPTION>
IF A REDEMPTION THE PERCENTAGE
IS MADE RATE FOR THE
DURING THE CDSC IS:
<S> <C>
-----------------------------------------------------------------
First year 5%
-----------------------------------------------------------------
Second year 4%
-----------------------------------------------------------------
Third year 4%
-----------------------------------------------------------------
Fourth year 3%
-----------------------------------------------------------------
Fifth year 2%
-----------------------------------------------------------------
Sixth year 1%
-----------------------------------------------------------------
Seventh year 0%
</TABLE>
If the amount you are redeeming reduces the current net asset
value of your investment in Class B shares below the total dollar
amount of all your purchase payments during the last six years
(including the year in which your redemption is made), the CDSC
is based on the lower of the redeemed purchase payments or market
value.
The following example illustrates how the CDSC is applied. Assume
you had invested $10,000 in Class B shares and that your
investment had appreciated in value to $12,000 after 15 months,
including reinvested dividend and capital gain distributions. You
could redeem any amount up to $2,000 without paying a CDSC
($12,000 current value less $10,000 purchase amount). If you
redeemed $2,500, the CDSC would apply only to the $500 that
represented part of your original purchase price. The CDSC rate
would be 4% because a redemption after 15 months would take place
during the second year after purchase.
21P
<PAGE>
- ---------------------------------------------------------------------------
How to buy, exchange or sell shares
Because the CDSC is imposed only on redemptions that reduce the
total of your purchase payments, you never have to pay a CDSC on
any amount you redeem that represents appreciation in the value
of your shares, income earned by your shares or capital gains. In
addition, when determining the rate of any CDSC, your redemption
will be made from the oldest purchase payment you made. Of
course, once a purchase payment is considered to have been
redeemed, the next amount redeemed is the next oldest purchase
payment. By redeeming the oldest purchase payments first, lower
CDSCs are imposed than would otherwise be the case.
WAIVERS OF THE SALES CHARGE FOR CLASS B SHARES
The CDSC on Class B shares will be waived on redemptions of
shares:
- In the event of the shareholder's death,
- Purchased by any trustee, director, officer or employee of a
fund or American Express Financial Corporation or its
subsidiaries,
- Purchased by any American Express financial advisor,
- Held in a trusteed employee benefit plan,
- Held in IRAs or certain qualified plans for which American
Express Trust Company acts as custodian, such as Keogh plans,
tax-sheltered custodial accounts or corporate pension plans,
provided that the shareholder is:
-- at least 59 1/2 years old, and
-- taking a retirement distribution (if the redemption is part of
a transfer to an IRA or qualified plan in a product distributed
by American Express Financial Advisors, or a
custodian-to-custodian transfer to a product not distributed by
American Express Financial Advisors, the CDSC will not be
waived), or
-- redeeming under an approved substantially equal periodic
payment arrangement.
22P
<PAGE>
----------------------------------------------------------
Special shareholder services
SERVICES
To help you track and evaluate the performance of your
investments, American Express Financial Corporation provides
these services:
QUARTERLY STATEMENTS listing all of your holdings and
transactions during the previous three months.
YEARLY TAX STATEMENTS featuring average-cost-basis reporting of
capital gains or losses if you redeem your shares along with
distribution information -- which simplifies tax calculations.
A PERSONALIZED MUTUAL FUND PROGRESS REPORT detailing returns on
your initial investment and cash-flow activity in your account.
It calculates a total return to reflect your individual history
in owning fund shares. This report is available from your
financial advisor.
-------------------------------------------------------------
QUICK TELEPHONE REFERENCE
AMERICAN Redemptions and exchanges, National/Minnesota:
EXPRESS dividend payments or 800-437-3133
TELEPHONE reinvestments and automatic Mpls./St. Paul area:
TRANSACTION payment arrangements 671-3800
SERVICE
----------------------------------------------------
AMERICAN Fund performance, objectives and 612-671-3733
EXPRESS account inquiries
SHAREHOLDER
SERVICE
----------------------------------------------------
TTY SERVICE For the hearing impaired 800-846-4852
----------------------------------------------------
AMERICAN Automated account information National/Minnesota:
EXPRESS (TouchTone-Registered Trademark- 800-272-4445
INFOLINE phones only), including current Mpls./St. Paul area:
fund prices and performance, 671-1630
account values and recent
account transactions
----------------------------------------------------
23P
<PAGE>
----------------------------------------------------------
Distributions and taxes
The fund distributes to shareholders investment income and net
capital gains. It does so to qualify as a regulated investment
company and to avoid paying corporate income and excise taxes.
Dividend and capital gains distributions will have tax
consequences you should know about.
DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS
The fund distributes its net investment income (dividends and
interest earned on securities held by the fund, less operating
expenses) to shareholders of record monthly. Short-term capital
gains distributed are included in net investment income. Net
realized capital gains, if any, from selling securities are
distributed at the end of the calendar year.
Dividends paid by each class will be calculated at the same time,
in the same manner and in the same amount, except the expenses
attributable solely to Class A, Class B and Class Y will be paid
exclusively by that class. Class B shareholders will receive
lower per share dividends than Class A and Class Y shareholders
because expenses for Class B are higher than for Class A or Class
Y.
REINVESTMENTS
Dividends and capital gain distributions are automatically
reinvested in additional shares in the same class of the fund,
unless:
- you request the fund in writing or by phone to pay
distributions to you monthly in cash, or
- you direct the fund to invest your distributions monthly in any
publicly available IDS fund for which you've previously opened
an account. Your purchases may be subject to a sales charge.
The reinvestment price is the net asset value at close of
business on the day the distribution is paid. (Your quarterly
statement will confirm the amount invested and the number of
shares purchased.)
If you choose cash distributions, you will receive only those
declared after your request has been processed.
If the U.S. Postal Service cannot deliver the checks for the cash
distributions, we will reinvest the checks into your account at
the then-current net asset value and make future distributions in
the form of additional shares.
24P
<PAGE>
- --------------------------------------------------------------------------------
TAXES
Distributions are subject to federal income tax and also may be
subject to state and local taxes. Distributions are taxable in
the year the fund pays them regardless of whether you take them
in cash or reinvest them.
Each January, you will receive a statement showing the kinds and
total amount of all distributions you received during the
previous year. You must report all distributions on your tax
returns, even if they are reinvested in additional shares.
Redemptions and exchanges subject you to a tax on any capital
gain. If you sell shares for more than their cost, the difference
is a capital gain. Your gain may be either short term (for shares
held for one year or less) or long term (for shares held for more
than one year).
YOUR TAXPAYER IDENTIFICATION NUMBER (TIN) IS IMPORTANT. As with
any financial account you open, you must list your current and
correct Taxpayer Identification Number (TIN) -- either your
Social Security or Employer Identification number. The TIN must
be certified under penalties of perjury on your application when
you open an account at American Express Financial Corporation.
If you don't provide the TIN, or the TIN you report is incorrect,
you could be subject to backup withholding of 31% of taxable
distributions and proceeds from certain sales and exchanges. You
also could be subject to further penalties, such as:
- a $50 penalty for each failure to supply your correct TIN
- a civil penalty of $500 if you make a false statement that
results in no backup withholding
- criminal penalties for falsifying information
You also could be subject to backup withholding because you
failed to report interest or dividends on your tax return as
required.
25P
<PAGE>
- ---------------------------------------------------------------------------
Distributions and taxes
-------------------------------------------------------------
HOW TO DETERMINE THE CORRECT TIN
FOR THIS TYPE OF ACCOUNT: USE THE SOCIAL SECURITY
OR
EMPLOYER IDENTIFICATION
NUMBER OF:
----------------------------------------------------
Individual or joint The individual or first
account person listed on the
account
----------------------------------------------------
Custodian account of a The minor
minor (Uniform
Gifts/Transfers to Minors
Act)
----------------------------------------------------
A living trust The grantor-trustee (the
person who puts the money
into the trust)
----------------------------------------------------
An irrevocable trust, The legal entity (not the
pension trust or estate personal representative
or trustee, unless no
legal entity is
designated in the account
title)
----------------------------------------------------
Sole proprietorship or The owner or partnership
partnership
----------------------------------------------------
Corporate The corporation
----------------------------------------------------
Association, club or The organization
tax-exempt organization
----------------------------------------------------
For details on TIN requirements, ask your financial advisor or
local American Express Financial Advisors office for Federal Form
W-9, "Request for Taxpayer Identification Number and
Certification."
IMPORTANT: This information is a brief and selective summary of
certain federal tax rules that apply to this fund. Tax matters
are highly individual and complex, and you should consult a
qualified tax advisor about your personal situation.
26P
<PAGE>
----------------------------------------------------------
How the fund is organized
IDS Money Market Series, Inc., of which IDS Cash Management Fund
is a part, is an open-end management investment company, as
defined in the Investment Company Act of 1940. Originally
incorporated on Aug. 22, 1975 in Nevada, IDS Money Market Series,
Inc. changed its state of incorporation on June 13, 1986 by
merging into a Minnesota corporation incorporated on April 7,
1986. The fund headquarters are at 901 S. Marquette Ave., Suite
2810, Minneapolis, MN 55402-3268.
SHARES
The fund is owned by its shareholders. The fund issues shares in
three classes -- Class A, Class B and Class Y. Each class has
different sales arrangements and bears different expenses. Each
class represents interests in the assets of the fund. Par value
is one cent per share. Both full and fractional shares can be
issued.
The fund no longer issues stock certificates.
VOTING RIGHTS
As a shareholder, you have voting rights over the fund's
management and fundamental policies. You are entitled to one vote
for each share you own. Each class has exclusive voting rights
with respect to the provisions of the fund's distribution plan
that pertain to a particular class and other matters for which
separate class voting is appropriate under applicable law.
SHAREHOLDER MEETINGS
The fund does not hold annual shareholder meetings. However, the
directors may call meetings at their discretion, or on demand by
holders of 10% or more of the outstanding shares, to elect or
remove directors.
DIRECTORS AND OFFICERS
Shareholders elect a board of directors that oversees the
operations of the fund and chooses its officers. Its officers are
responsible for day-to-day business decisions based on policies
set by the board. The board has named an executive committee that
has authority to act on its behalf between meetings. The
directors also serve on the boards of all of the other funds in
the IDS MUTUAL FUND GROUP, except for Mr. Dudley, who is a
director of all publicly offered funds.
27P
<PAGE>
- ---------------------------------------------------------------------------
How the fund is organized
- ------------------------------------------------------------------
DIRECTORS AND OFFICERS OF THE FUND
President and WILLIAM R. PEARCE
interested director President of all funds in the IDS MUTUAL FUND GROUP.
- ------------------------------------------------------------------
Independent LYNNE V. CHENEY
directors Distinguished fellow, American Enterprise Institute for
Public Policy Research.
ROBERT F. FROEHLKE
Former president of all funds in the IDS MUTUAL FUND
GROUP.
HEINZ F. HUTTER
Former president and chief operating officer, Cargill,
Inc.
ANNE P. JONES
Attorney and telecommunications consultant.
DONALD M. KENDALL
Former chairman and chief executive officer, PepsiCo,
Inc.
MELVIN R. LAIRD
Senior counsellor for national and international
affairs,
The Reader's Digest Association, Inc.
LEWIS W. LEHR
Former chairman and chief executive officer, Minnesota
Mining and Manufacturing Company (3M).
EDSON W. SPENCER
Former chairman and chief executive officer, Honeywell,
Inc.
WHEELOCK WHITNEY
Chairman, Whitney Management Company.
C. ANGUS WURTELE
Chairman of the board and chief executive officer,
The Valspar Corporation.
- ------------------------------------------------------------------
Interested directors WILLIAM H. DUDLEY
who are officers Executive vice president, American Express Financial
and/or employees Corporation.
of American Express DAVID R. HUBERS
Financial President and chief executive officer, American Express
Corporation Financial Corporation.
JOHN R. THOMAS
Senior vice president, American Express Financial
Corporation.
- ------------------------------------------------------------------
Other officer LESLIE L. OGG
Vice president of all funds in the IDS MUTUAL FUND
GROUP and general counsel and treasurer of the publicly
offered funds.
Refer to the SAI for the directors' and officers' biographies.
28P
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT MANAGER AND TRANSFER AGENT
The fund pays American Express Financial Corporation for managing
its portfolio, providing administrative services and serving as
transfer agent (handling shareholder accounts).
Under its Investment Management Services Agreement, American
Express Financial Corporation determines which securities will be
purchased, held or sold (subject to the direction and control of
the fund's board of directors). Effective March 1995, the fund
pays American Express Financial Corporation a fee for these
services based on the average daily net assets of the fund, as
follows:
<TABLE>
<CAPTION>
ASSETS ANNUAL RATE
(BILLIONS) AT EACH ASSET LEVEL
<S> <C> <C>
----------------------------------------
First $ 1.0 0.310%
----------------------------------------
Next 0.5 0.293
----------------------------------------
Next 0.5 0.275
----------------------------------------
Next 0.5 0.258
----------------------------------------
Over 2.5 0.240
</TABLE>
For the fiscal year ended July 31, 1994, under a prior agreement,
the fund paid American Express Financial Corporation a total
investment management fee of 0.34% of its average daily net
assets. Under the Agreement, the fund also pays taxes, brokerage
commissions and nonadvisory expenses.
Under an Administrative Services Agreement, the fund pays
American Express Financial Corporation for administration and
accounting services at an annual rate of 0.03% decreasing in
gradual percentages to 0.02% as assets increase.
In addition, under a separate Transfer Agency Agreement, American
Express Financial Corporation maintains shareholder accounts and
records. The fund pays American Express Financial Corporation an
annual fee per shareholder account for this service as follows:
- Class A $20.
- Class B $21.
- Class Y $20.
29P
<PAGE>
- ---------------------------------------------------------------------------
How the fund is organized
DISTRIBUTOR
The fund sells shares at net asset value through American Express
Financial Advisors, a wholly owned subsidiary of American Express
Financial Corporation, under a Distribution Agreement. Financial
advisors representing American Express Financial Advisors provide
information to investors about individual investment programs,
the fund and its operations, new account applications, exchange
and redemption requests.
For Class B shares, to help defray costs, including costs for
marketing, sales administration, training, overhead, direct
marketing programs, advertising and related functions, the fund
pays American Express Financial Advisors a distribution fee, also
known as a 12b-1 fee. This fee is paid under a Plan and Agreement
of Distribution that follows the terms of Rule 12b-1 of the
Investment Company Act of 1940. Under this Agreement, the fund
pays a distribution fee at an annual rate of 0.75% of the fund's
average daily net assets attributable to Class B shares for
distribution-related services. The total 12b-1 fee paid by the
fund under a prior agreement for the fiscal year ended July 31,
1994 was 0.11% of its average daily net assets. This fee will not
cover all of the costs incurred by American Express Financial
Advisors.
Total expenses paid by the fund in the fiscal year ended July 31,
1994 were 0.94% of its average daily net assets.
Total fees and expenses (excluding taxes and brokerage
commissions) cannot exceed the most restrictive applicable state
expense limitation.
30P
<PAGE>
----------------------------------------------------------
About American Express Financial Corporation
GENERAL INFORMATION
The American Express Financial Corporation family of companies
offers not only mutual funds but also insurance, annuities,
investment certificates and a broad range of financial management
services.
Besides managing investments for all publicly offered funds in
the IDS MUTUAL FUND GROUP, American Express Financial Corporation
also manages investments for itself and its subsidiaries, IDS
Certificate Company and IDS Life Insurance Company. Total assets
under management on July 31, 1994 were more than $100 billion.
American Express Financial Advisors serves individuals and
businesses through its nationwide network of more than 175
offices and more than 7,800 advisors.
Other American Express Financial Corporation subsidiaries provide
investment management and related services for pension, profit
sharing, employee savings and endowment funds of businesses and
institutions.
American Express Financial Corporation is located at IDS Tower
10, Minneapolis, MN 55440-0010. It is a wholly owned subsidiary
of American Express Company, a financial services company with
headquarters at American Express Tower, World Financial Center,
New York, NY 10285. The fund may pay brokerage commissions to
broker-dealer affiliates of American Express and American Express
Financial Corporation.
31P
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
FOR
IDS CASH MANAGEMENT FUND
Sept. 29, 1994 as revised March 20, 1995
This Statement of Additional Information (SAI) is not a prospectus. It should be
read together with the fund's prospectus and the financial statements contained
in the Annual Report which may be obtained from your American Express financial
advisor or by writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534.
This SAI is dated Sept. 29, 1994 as revised March 20, 1995, and it is to be
used with the prospectus dated Sept. 29, 1994 as revised March 20, 1995, and
the Annual Report for the fiscal year ended July 31, 1994.
-1-
<PAGE>
TABLE OF CONTENTS
Goal and Investment Policies.........................See Prospectus
Additional Investment Policies................................p.
Portfolio Transactions........................................p.
Brokerage Commissions Paid to Brokers Affiliated with
American Express Financial Corporation........................p.
Performance Information.......................................p.
Valuing Fund Shares...........................................p.
Investing in the Fund.........................................p.
Redeeming Shares..............................................p.
Pay-out Plans.................................................p.
Exchanges.....................................................p.
Taxes.........................................................p.
Agreements....................................................p.
Directors and Officers........................................p.
Custodian.....................................................p.
Independent Auditors..........................................p.
Financial Statements..............................See Annual Report
Prospectus....................................................p.
Appendix A: Description of Money Market Securities...........p.
Appendix B: Dollar-Cost Averaging............................p.
-2-
<PAGE>
ADDITIONAL INVESTMENT POLICIES
These are investment policies in addition to those presented in the prospectus.
Unless holders of a majority of the outstanding shares agree to make the change
the fund will not:
'Invest in a company to control or manage it.
'Act as an underwriter (sell securities for others). However, under the
securities laws, the fund may be deemed to be an underwriter when it purchases
securities directly from the issuer and later resells them.
'Borrow money or property, except as a temporary measure for extraordinary or
emergency purposes, in an amount not exceeding one-third of the market value of
its total assets (including borrowings) less liabilities (other than borrowings)
immediately after the borrowing. The fund has not borrowed in the past and has
no present intention to borrow.
'Invest in exploration or development programs, such as oil, gas or mineral
programs.
'Invest more than 5% of its total assets, at cost, in securities of companies,
including any predecessors, that have a record of less than three years
continuous operations.
'Pledge or mortgage its assets beyond 15% of the cost of total assets.
'Invest more than 5% of its total assets, at market value, in securities of any
one company, government or political subdivision thereof, except the limitation
will not apply to investments in securities issued by the U.S. government, its
agencies or instrumentalities.
'Buy on margin, sell short or deal in options to buy or sell securities.
'Buy or sell real estate, commodities or commodity contracts. For purposes of
this policy, real estate includes real estate limited partnerships.
'Purchase securities of an issuer if the directors and officers of the fund and
of American Express Financial Corporation hold more than a certain
percentage of the issuer's outstanding securities. If the holdings of all
directors and officers of the fund and of American Express Financial
Corporation who own more than 0.5% of an issuer's securities are added
together, and if in total they own more than 5%, the fund will not purchase
securities of that issuer.
'Lend portfolio securities in excess of 30% of its net assets, at market value.
This policy may not be changed without shareholder approval. If the fund were
to make such long- or short-term loans, it will get the market price in cash,
U.S. Government securities, letters of credit or such other collateral as may be
permitted by regulatory agencies and approved by the board of directors. If the
market price of the loaned securities goes up, the fund will get additional
collateral on a daily basis. The risks are that the
-3-
<PAGE>
borrower may not provide additional collateral when required or return the
securities when due. Loans will not be made unless the investment manager
believe the opportunity for additional income outweighs these risks. During
the existence of the loan, the fund receives cash payments equivalent to
all interest or other distributions paid on the loaned securities. The fund has
no present intention of loaning portfolio securities.
'Purchase common stocks, preferred stocks, warrants, other equity securities,
corporate bonds or debentures, state bonds, municipal bonds or industrial
revenue bonds.
'Purchase securities of other open-end investment companies or invest more than
10% of the market value of its assets in closed- end funds. If the fund ever
makes such an investment, purchases will occur only on the open market where the
dealer's or sponsor's profit is limited to a regular commission. The fund has
no present intention of investing in other registered investment companies.
Unless changed by the board of directors, the fund will not:
'Invest more than 10% of its net assets in securities that are illiquid whether
or not registration or the filing of a notification under the Securities Act of
1933 or the taking of similar action under other securities laws relating to the
sale of securities is required. A risk of any such investment is that it might
not be able to be easily liquidated. For the purpose of this policy,
repurchase agreements with maturities greater than seven days and
non-negotiable fixed time deposits will be treated as illiquid securities.
In determining the liquidity of commercial paper issued in transactions not
involving a public offering under Section 4(2) of the Securities Act of 1933,
the investment manager, under guidelines established by the board of directors,
will evaluate relevant factors such as the issuer and the size and nature of its
commercial paper programs, the willingness and ability of the issuer or dealer
to repurchase the paper, and the nature of the clearance and settlement
procedures for the paper.
The fund may invest in commercial paper rated in the highest rating category by
at least two nationally recognized statistical rating organizations (or by one,
if only one rating is assigned) and in unrated paper determined by the board of
directors to be of comparable quality. The fund also may invest up to 5% of its
total assets in commercial paper receiving the second highest rating or in
unrated paper determined to be of comparable quality.
Notwithstanding any of the fund's other investment policies, the fund may invest
its assets in an open-end management investment company having substantially the
same investment objectives, policies and restrictions as the fund for the
purpose of having those assets managed as part of a combined pool.
For a description of money market securities, see Appendix A.
-4-
<PAGE>
PORTFOLIO TRANSACTIONS
Subject to policies set by the board of directors (the board), American
Express Financial Corporation is authorized to determine, consistent with
the fund's investment goal and policies, which securities will be purchased,
held or sold. In determining where the buy and sell orders are to be placed,
American Express Financial Corporation has been directed to use its best
efforts to obtain the best available price and most favorable execution except
where otherwise authorized by the board of directors.
Normally, the fund's securities are traded on a principal rather than an agency
basis. In other words, American Express Financial Corporation will trade
directly with the issuer or with a dealer who buys or sells for its own
account, rather than acting on behalf of another client. American
Express Financial Corporation does not pay the dealer commissions. Instead,
the dealer's profit, if any, is the difference, or spread, between the
dealer's purchase and sale price for the security.
Each investment decision made for the fund is made independently from any
decision made for another fund in the IDS MUTUAL FUND GROUP or other account
advised by American Express Financial Corporation or any of its subsidiaries.
When the fund buys or sells the same security as another fund or account,
American Express Financial Corporation carries out the purchase or sale in a
way the fund agrees in advance is fair. Although sharing in large transactions
may adversely affect the price or volume purchased or sold by the fund, the
fund hopes to gain an overall advantage in execution.
The fund paid total brokerage commissions of $0 for the fiscal year ended July
31, 1994, $0 for fiscal year 1993, and $0 for fiscal year 1992.
No transactions were directed to brokers because of research services they
provided to the fund.
On July 31, 1994, at the end of the fund's fiscal year, the fund held securities
of its regular brokers or dealers or of the parent of those brokers or dealers
that derived more than 15% of gross revenue from securities-related activities
is presented below:
<TABLE>
<CAPTION>
Value of Securities
Owned at End of
Name of Issuer Fiscal Year
- -------------- -------------------
<S> <C>
Goldman Sachs Group $14,152,590
Merrill Lynch & Co., Inc. 29,996,615
Morgan Stanley Group 5,001,836
</TABLE>
BROKERAGE COMMISSIONS PAID TO BROKERS AFFILIATED WITH AMERICAN
EXPRESS FINANCIAL CORPORATION
Affiliates of American Express Company (American Express) (of which American
Express Financial Corporation is a wholly owned subsidiary) may engage in
brokerage and other securities transactions on behalf of the fund according to
procedures adopted by the fund's board of directors and to the extent
consistent with applicable provisions of the federal securities laws.
American Express Financial Corporation will use an American Express affiliate
only if (i) American Express Financial Corporation determines that the fund
will receive prices and executions at least as favorable as those offered by
qualified independent brokers performing similar brokerage and other services
American Express Financial Corporation may direct brokerage to compensate an
affiliate. American Express Financial Corporation will receive research on
South Africa from New Africa Advisers a wholly-owned subsidiary of Sloan
Financial Group. American Express Financial Corporation owns 100% of IDS
Capital Holdings Inc. which in turn owns 40% of Sloan Financial Group. New
Africa Advisers will send research to American Express Financial Corporation
and in turn American Express Financial Corporation will direct trades to a
particular broker. The broker will have an agreement to pay New Africa
Advisers. All transactions will be on a best execution basis. Compensation
received will be reasonable for the services rendered.
-5-
<PAGE>
for the fund and (ii) the affiliate charges the fund commission rates consistent
with those the affiliate charges comparable unaffiliated customers in similar
transactions and if such use is consistent with terms of the Investment
Management Services Agreement.
No brokerage commissions were paid to brokers affiliated with American
Express Financial Corporation for the three most recent fiscal years.
PERFORMANCE INFORMATION
The fund may quote various performance figures to illustrate past performance.
Average annual total return and current yield quotations used by the fund are
based on standardized methods of computing performance as required by the SEC.
An explanation of the methods used by the fund to compute performance follows
below.
AVERAGE ANNUAL TOTAL RETURN
The fund may calculate average annual total return for a class for certain
periods by finding the average annual compounded rates of return over the period
that would equate the initial amount invested to the ending redeemable value,
according to the following formula:
n
P(1+T) = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1,000
payment, made at the beginning of a period, at the
end of the period (or fractional portion thereof)
AGGREGATE TOTAL RETURN
The fund may calculate aggregate total return for a class for certain periods
representing the cumulative change in the value of an investment in the fund
over a specified period of time according to the following formula:
ERV - P
-------
P
where: P = a hypothetical initial payment of $1,000
ERV = ending redeemable value of a hypothetical $1,000
payment, made at the beginning of a period, at the
end of the period (or fractional portion thereof)
ANNUALIZED YIELD
The fund calculates annualized simple and compound yields for a class based on a
seven-day period.
The simple yield is calculated by determining the net change in the value of a
hypothetical account having a balance of one share at the beginning of the
seven-day period, dividing the net change in account value by the value of the
account at the beginning of the period to obtain the return for the period, and
multiplying that
-6-
<PAGE>
return by 365/7 to obtain an annualized figure. The value of the hypothetical
account includes the amount of any declared dividends, the value of any shares
purchased with any dividend paid during the period and any dividends declared
for such shares. The fund's yield does not include any realized or unrealized
gains or losses.
The fund calculates its compound yield according to the following formula:
365/7
Compound Yield = (return for seven-day period + 1) - 1
The fund's simple annualized yield was 3.77% and its compound yield was 3.84% on
July 29, 1994, the last day of the fund's fiscal year.
Yield, or rate of return, on fund shares may fluctuate daily and does not
provide a basis for determining future yields. However, it may be used as one
element in assessing how a fund is meeting its goal. When comparing an
investment in each fund with savings accounts and similar investment
alternatives, you must consider that such alternatives often provide an agreed
to or guaranteed fixed yield for a stated period of time, whereas a fund's yield
fluctuates. In comparing the yield of one money market fund to another, you
should consider each fund's investment policies, including the types of
investments permitted.
In its sales material and other communications, the fund may quote, compare or
refer to rankings, yields or returns as published by independent statistical
services or publishers and publications such as The Bank Rate Monitor National
Index, Barron's, Business Week, Donoghue's Money Market Fund Report, Financial
Services Week, Financial Times, Financial World, Forbes, Fortune, Global
Investor, Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Lipper Analytical Services, Money, Mutual Fund Forecaster, Newsweek,
The New York Times, Personal Investor, Stanger Report, Sylvia Porter's Personal
Finance, USA Today, U.S. News and World Report, The Wall Street Journal and
Wiesenberger Investment Companies Service.
VALUING FUND SHARES
The fund values its securities as follows: All of the securities in the fund's
portfolio are valued at amortized cost. The amortized cost method of valuation
is an approximation of market value determined by systematically increasing the
carrying value of a security if acquired at a discount, or reducing the carrying
value if acquired at a premium, so that the carrying value is equal to maturity
value on the maturity date. It does not take into consideration unrealized
capital gains or losses.
The board of directors has established procedures designed to stabilize the
fund's price per share for purposes of sales and redemptions at $1, to the
extent that it is reasonably possible to do so. These procedures include review
of the fund's portfolio securities by the board, at intervals deemed appropriate
by it, to determine whether the fund's net asset value per share computed by
using available market quotations deviates from a share value of $1 as computed
using the amortized cost method. The board must
-7-
<PAGE>
consider any deviation that appears and if it exceeds 0.5% it must determine
what action, if any, needs to be taken. If the board determines a deviation
exists that may result in a material dilution of the holdings of current
shareholders or investors, or in other unfair consequences for such persons, it
must undertake remedial action that it deems necessary and appropriate. Such
action may include withholding dividends, calculating net asset value per share
for purposes of sales and redemptions using available market quotations, making
redemptions in kind, and selling portfolio securities before maturity in order
to realize capital gains or losses or to shorten average portfolio maturity.
While the amortized cost method provides certainty and consistency in portfolio
valuation, it may result in valuations of portfolio securities that are either
somewhat higher or lower than the prices at which the securities could be sold.
This means that during times of declining interest rates the yield on the fund's
shares may be higher than if valuations of portfolio securities were made based
on actual market prices and estimates of market prices. Accordingly, if using
the amortized cost method were to result in a lower portfolio value, a
prospective investor in the fund would be able to obtain a somewhat higher yield
than he would get if portfolio valuation were based on actual market values.
Existing shareholders, on the other hand, would receive a somewhat lower yield
than they would otherwise receive. The opposite would happen during a period
of rising interest rates.
The New York Stock Exchange, American Express Financial Corporation, and the
fund will be closed on the following holidays: New Year's Day, Presidents'
Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day.
INVESTING IN THE FUND
The minimum purchase for directors, officers and employees of the fund or
American Express Financial Corporation and American Express financial advisors
is $1,000 (except payroll deduction plans), with a minimum additional purchase
of $25.
Systematic Investment Programs
After you make your initial investment of $2,000, you can arrange to make
additional payments of $100 or more on a regular basis. These minimums do not
apply to all systematic investment programs. You decide how often to make
payments - monthly, quarterly or semiannually. You are not obligated to make
any payments. The fund also can change the program or end it at any time. If
there is no obligation, why do it? Putting money aside is an important part of
financial planning. With a systematic investment program, you have a goal to
work for.
How does this work? Each purchase is a separate transaction. After each
purchase your new shares will be added to your account. Shares bought through
these programs are exactly the same as any
-8-
<PAGE>
other fund shares. They can be bought and sold at any time. A systematic
investment program is not an option or an absolute right to buy shares.
For a discussion on dollar-cost averaging, see Appendix B.
Automatic Directed Dividends
Dividends, including capital gain distributions, paid by another fund in the
IDS MUTUAL FUND GROUP may be used to automatically purchase shares of this
fund. Dividend and capital gain distributions, if any, paid by the fund may
be used to automatically purchase shares of another fund in the IDS MUTUAL
FUND GROUP available in your state. Dividends may be directed to existing
accounts only. Dividends declared by the fund are exchanged the following
day. Dividends can be exchanged into one fund but cannot be split to make
purchases in two or more funds. Automatic directed dividends are available
between accounts of any ownership EXCEPT:
'Between a non-custodial account and an IRA, or 401(k) plan account or other
qualified retirement account of which American Express Trust Company acts as
custodian;
'Between two American Express Trust Company custodial accounts with different
owners (for example, you may not exchange dividends from your IRA to the IRA of
your spouse);
'Between different kinds of custodial accounts with the same ownership (for
example, you may not exchange dividends from your IRA to your 401(k) plan
account, although you may exchange dividends from one IRA to another IRA).
Dividends may be directed from accounts established under the Uniform Gifts to
Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) only into other UGMA
or UTMA accounts with identical ownership.
The fund's investment goal is described in its prospectus along with other
information, including fees and expense ratios. Before exchanging dividends
into another fund, you should read its prospectus. You will receive a
confirmation that the automatic directed dividend service has been set up for
your account.
REDEEMING SHARES
You have a right to redeem your shares at any time. For an explanation of
redemption procedures, please see the prospectus.
DRAFTS: Drafts of $100 or more are available for shareholders. Drafts should
be requested by registered owners only. The number of signatures required for
payment of a draft may vary by account ownership. Drafts should be used like
checks, but should not be sent directly to the Minneapolis headquarters to be
cashed. When the draft is accepted by the fund through the banking system,
-9-
<PAGE>
shares will be redeemed from your account. In order to qualify for this
service, all shares must be held in non-certificate form. If the account is
not large enough to cover a draft, it will be dishonored and returned marked
"insufficient funds." DRAFTS WRITTEN ON PURCHASES MADE WITH NON- GUARANTEED
FUNDS NOT YET 10 DAYS OLD WILL NOT BE HONORED IN MOST CASES. The draft
writing privilege may be modified or terminated at anytime. It may not always
be possible to give all shareholders advance notification of each change in the
draft writing privilege.
TELEPHONE REDEMPTIONS: Telephone redemptions are available for shareholders.
Records maintained by American Express Financial Corporation will be binding
on all parties. Neither American Express Financial Corporation nor the fund
will be liable for any loss, expense or damage arising in connection with
telephone redemption requests. In order to qualify for this service, all
shares must be held in non-certificate form.
The requesting registered owner must be prepared to provide sufficient
information to enable American Express Financial Corporation to verify the
authenticity of the call and to process the redemption request. All telephone
calls will be recorded. Redemption requests received before the close of
business (normally 3 p.m. Central time) will be processed the same day. For
each redemption, a number of shares equal to the amount of the requested
redemption will be redeemed. The following business day, the redemption
proceeds will be mailed to the address of record or transmitted by Federal
Reserve Wire to the bank account designated on the telephone authorization
form, provided American Express Financial Corporation, the fund, Norwest Bank
Minneapolis and your bank are all open. At the present time there is no
additional fee charged for the wire service, but if such a fee is imposed in
the future, an additional number of shares will be redeemed to cover it.
The telephone redemption privilege may be modified or discontinued at any time.
It may not always be possible to give all shareholders advance notice of each
change in the procedures for telephone redemptions.
DURING AN EMERGENCY, the board can suspend computation of the net asset value,
stop accepting payments for purchase of shares or suspend the duty of the fund
to redeem shares for more than seven days. Such emergency situations would
occur if:
'The New York Stock Exchange closes for reasons other than the
usual weekend and holiday closings or trading on the Exchange is restricted, or
'Disposal of a fund's securities is not reasonably practicable, or it is not
reasonably practicable for the fund to determine the fair value of its net
assets, or
'The SEC, under the provisions of the Investment Company Act of 1940, as
amended, declares a period of emergency to exist.
Should the fund stop selling shares, the board may make a deduction from the
value of the assets held by the fund to cover the cost of future liquidations of
the assets so as to distribute these costs fairly among all shareholders.
-10-
<PAGE>
For Class A Shares of the fund, participants in qualified plans may be subject
to a deferred sales charge on certain redemptions. The deferred sales charge
will be waived if the redemption is a result of a participant's
death, disability, retirement, attaining age 59 1/2, loans or hardship
withdrawals. The deferred sales charge varies depending on the number of
participants in the qualified plan and total plan assets as follows:
Deferred Sales Charge
<TABLE>
<CAPTION>
Number of Participants
----------------------
Total Plan Assets 1-99 100 or more
- ----------------- ---- -----------
<S> <C> <C>
Less than $1 million 4% 0%
$1 million or more 0% 0%
</TABLE>
PAY-OUT PLANS
Shareholders of the fund can use any of several pay-out plans to redeem their
investment in regular installments. If you redeem Class B shares you may be
subject to a contingent deferred sales charge as discussed in the prospectus.
While the plans differ on how the pay-out is figured, they all are based on the
redemption of the investment. Net investment income dividends and any capital
gain distributions will automatically be reinvested, unless you elect to receive
them in cash. If a tax-qualified plan account for which American Express Trust
Company acts as custodian is being redeemed, an election may be made to receive
dividends and other distributions in cash when permitted by law. If an IRA or a
qualified retirement account is redeemed, certain restrictions, federal tax
penalties and special federal income tax reporting requirements may apply. You
should consult your tax advisor about this complex area of the tax law.
To start any of these plans, please write or call American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534, 612-671-3733. Your
authorization must be received in the Minneapolis headquarters at least five
days before the date you want your payments to begin. The initial payment must
be at least $50. Payments will be made on a monthly, bimonthly, quarterly,
semiannual or annual basis. Your choice is effective until you change or cancel
it.
The following pay-out plans are designed to take care of the needs of most
shareholders in a way American Express Financial Corporation can handle
efficiently and at a reasonable cost. If you need a more irregular schedule
of payments, it may be necessary for you to make a series of individual
redemptions, in which case you'll have to send in a separate redemption
request for each pay-out. The fund reserves the right to change or stop any
pay-out plan and to stop making such plans available.
-11-
<PAGE>
Plan #1: Pay-out for a fixed period of time
If you choose this plan, a varying number of shares will be redeemed at regular
intervals during the time period you choose. This plan is designed to end in
complete redemption of all shares in your account by the end of the fixed
period.
Plan #2: Redemption of a fixed number of shares
If you choose this plan, a fixed number of shares will be redeemed for each
payment and that amount will be sent to you. The length of time these payments
continue is based on the number of shares in your account.
Plan #3: Redemption of a fixed dollar amount
If you decide on a fixed dollar amount, whatever number of shares is necessary
to make the payment will be redeemed in regular installments until the account
is closed.
Plan #4: Redemption of a percentage of net asset value
Payments are made based on a fixed percentage of the net asset value of the
shares in the account computed on the day of each payment. Percentages range
from 0.25% to 0.75%. For example, if you are on this plan and arrange to take
0.5% each month, you will get $50 if the value of your account is $10,000 on the
payment date.
EXCHANGES
Retirement Accounts
If you have a nonqualified investment in the fund, you may move part or all of
those shares to an IRA or qualified retirement account in the same class of
shares in the fund. However, this type of exchange is considered a sale of
shares and may result in a gain or loss for tax purposes.
TAXES
Since the fund invests only in money market securities, all income is from
interest or short-term capital gains. Accordingly, distributions of net
investment income do not qualify for the 70% dividends-received deduction for
corporations.
Under federal tax law, by the end of a calendar year the fund must declare and
pay dividends representing 98% of ordinary income for that calendar year and 98%
of net capital gains (both long-term and short-term) for the 12-month period
ending Oct. 31 of that calendar year. The fund is subject to an excise tax
equal to 4% of the excess, if any, of the amount required to be distributed over
the amount actually distributed. The fund intends to comply with federal tax
law and avoid any excise tax.
This is a brief summary that relates to federal income taxation only.
Shareholders should consult their tax advisor as to the
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<PAGE>
application of federal, state and local income tax laws to fund distributions.
AGREEMENTS
Investment Management Services Agreement
The fund has an Investment Management Services Agreement with American
Express Financial Corporation. For its services, American Express Financial
Corporation is paid a fee based on the following schedule:
Annual rate
Group assets at each
(billions) asset level
- ------------ -----------
First $1.0 0.310%
Next 0.5 0.293
Next 0.5 0.275
Next 0.5 0.258
Over 2.5 0.240
In March 1995, the daily rate applied to the fund's assets is expected to be
approximately 0.31% on an annual basis. The fee is calculated for each calendar
day on the basis of the net assets of the fund as of the close of business of
the full business day, which is two business days prior to the day for which the
calculation is being made.
The management fee is paid monthly. Under the prior agreement, the amount paid
was $3,600,005 for the year ended July 31, 1994, $3,764,991 for 1993, and
$5,768,516 for 1992.
Under the current Agreement, the fund also pays taxes, brokerage commissions and
nonadvisory expenses, that include custodian fees; audit and certain legal fees;
fidelity bond premiums; registration fees for shares; fund office expenses;
consultants' fees; compensation of directors, officers and employees; corporate
filing fees; organizational expenses; expenses incurred in connection with
lending portfolio securities of the fund; and expenses properly payable by the
fund, approved by the board of directors. Under the prior agreement, the fund
paid nonadvisory expenses of $580,091 for the year ended July 31, 1994, $435,857
for 1993, and $1,785,637 for 1992.
Administrative Services Agreement
The fund has an Administrative Services Agreement with American Express
Financial Corporation. Under this agreement, the fund pays American
Express Financial Corporation for providing administration and accounting
services. The fee is calculated as follows:
Assets Annual rate
(billions) each asset level
----------- ----------------
First $1.0 0.030%
Next 0.5 0.027
Next 0.5 0.025
Next 0.5 0.022
Over $2.5 0.020
-13-
<PAGE>
Transfer Agency Agreement
The fund has a Transfer Agency Agreement with American Express Financial
Corporation. This agreement governs American Express Financial Corporation's
responsibility for administering and/or performing transfer agent
functions, for acting as service agent in connection with dividend and
distribution functions and for performing shareholder account administration
agent functions in connection with the issuance, exchange and redemption or
repurchase of the fund's shares. Under the agreement, American Express
Financial Corporation will earn a fee from the fund determined by multiplying
the number of shareholder accounts at the end of the day by a rate determined
for each class and dividing by the number of days in the year. The rate for
Class A and Class Y is $20 per year. The rate for Class B is $21 per year. The
fees paid to American Express Financial Corporation may be changed from time
to time upon agreement of the parties without shareholder approval. The fund
paid fees of $4,605,668 for the fiscal year ended July 31, 1994.
Distribution Agreement
For an explanation of the fund's Distribution Agreement, please see your
prospectus.
Additional information about commissions and compensation for the last fiscal
year paid by the fund is contained in the following table:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
Net Compensation
Name of Underwriting on Redemption
Principal Discounts and and Brokerage Other
Underwriter Commissions Repurchases Commissions Compensation
----------- ------------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
American
Express
Financial None None None $1,182,206*
Advisors
</TABLE>
*Distribution fees paid pursuant to a Plan and Supplemental Agreement of
Distribution.
Plan and Agreement of Distribution
For Class B shares, to help American Express Financial Advisors defray the cost
of distribution and servicing, not covered by the sales charges received under
the Distribution Agreement, the fund and American Express Financial Advisors
entered into a Plan and Agreement of Distribution (Plan). These costs cover
almost all aspects of distributing the fund shares except compensation to the
sales force. A substantial portion of the costs are not specifically identified
to any one fund in the IDS MUTUAL FUND GROUP. Under the Plan, American Express
Financial Advisors is paid a fee at an annual rate of 0.75% of the fund's
average daily net assets attributable to Class B shares.
The Plan must be approved annually by the board, including a majority of the
disinterested directors, if it is to continue for more than a year. At least
quarterly, the board must review written reports concerning the amounts
expended under the Plan and the purposes for which such expenditures were made.
-14-
<PAGE>
The Plan and any agreement related to it may be terminated at any time by vote
of a majority of directors who are not interested persons of the fund and have
no direct or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan, or by vote of a majority of the outstanding
voting securities of the fund or by American Express Financial Advisors. The
Plan (or any agreement related to it) will terminate in the event of its
assignment, as that term is defined in the Investment Company Act of 1940, as
amended. The Plan may not be amended to increase the amount to be spent for
distribution without shareholder approval, and all material amendments to the
Plan must be approved by a majority of the directors, including a majority of
the directors who are not interested persons of the fund and who do not have a
financial interest in the operation of the Plan or any agreement related to it.
The selection and nomination of disinterested directors is the responsibility
of the other disinterested directors. No interested person of the fund, and
no director who is not an interested person, has any direct or indirect
financial interest in the operation of the Plan or any related agreement.
Total fees and nonadvisory expenses cannot exceed the most restrictive
applicable state limitation. Currently, the most restrictive applicable state
expense limitation, subject to exclusion of certain expenses, is 2.5% of the
first $30 million of the fund's average daily net assets, 2% of the next $70
million and 1.5% of average daily net assets over $100 million, on an annual
basis. At the end of each month, if the fees and expenses of the fund exceed
this limitation for the fund's fiscal year in progress, American Express
Financial Corporation will assume all expenses in excess of the limitation.
American Express Financial Corporation then may bill the fund for such
expenses in subsequent months up to the end of that fiscal year, but not after
that date. No interest charges are assessed by American Express Financial
Corporation for expenses it assumes.
DIRECTORS AND OFFICERS
The following is a list of the fund's directors who, except for Mr. Dudley, also
are directors of all other funds in the IDS MUTUAL FUND GROUP. Mr. Dudley is a
director of all publicly offered funds. All shares have cumulative voting
rights when voting on the election of directors.
LYNNE V. CHENEY+'
Born in 1941.
American Enterprise Institute
for Public Policy Research (AEI)
1150 17th St., N.W.
Washington, D.C.
Distinguished Fellow AEI. Former Chair of National Endowment of the Humanities.
Director, The Reader's Digest Association Inc., Lockheed Corp., and the
Interpublic Group of Companies, Inc. (advertising).
-15-
<PAGE>
WILLIAM H. DUDLEY+**
Born in 1932.
2900 IDS Tower
Minneapolis, MN
Executive vice president and director of American Express Financial
Corporation.
ROBERT F. FROEHLKE+
Born in 1922.
1201 Yale Place
Minneapolis, MN
Former president of all funds in the IDS MUTUAL FUND GROUP. Director, the ICI
Mutual Insurance Co., Institute for Defense Analyses, Marshall Erdman and
Associates, Inc. (architectual engineering) and Public Oversight Board of the
American Institute of Certified Public Accountants.
DAVID R. HUBERS**
Born in 1943.
2900 IDS Tower
Minneapolis, MN
President, chief executive officer and director of American Express Financial
Corporation. Previously, senior vice president, finance and chief financial
officer of American Express Financial Corporation.
HEINZ F. HUTTER+
Born in 1929.
P.O. Box 5724
Minneapolis, MN
President and chief operating officer, Cargill, Incorporated (commodity
merchants and processors) from February 1991 to September 1994. Executive vice
president from 1981 to February 1991.
ANNE P. JONES+
Born in 1935.
5716 Bent Branch Rd.
Bethesda, MD
Attorney and telecommunications consultant. Former partner, law firm of
Sutherland, Asbill & Brennan. Director, Motorola, Inc. and C-Cor Electronics,
Inc.
DONALD M. KENDALL'
Born in 1921.
PepsiCo, Inc.
Purchase, NY
Former chairman and chief executive officer, PepsiCo, Inc.
MELVIN R. LAIRD+
Born in 1922.
Reader's Digest Association, Inc.
1730 Rhode Island Ave., N.W.
Washington, D.C.
Senior counsellor for national and international affairs, The Reader's Digest
Association, Inc. Chairman of the board, COMSAT Corporation, former nine-term
congressman, secretary of defense and presidential counsellor. Director, Martin
Marietta Corp., Metropolitan Life Insurance Co., The Reader's Digest
Association,
-16-
<PAGE>
Inc., Science Applications International Corp., Wallace Reader's Digest Funds
and Public Oversight Board (SEC Practice Section, American Institute of
Certified Public Accountants).
LEWIS W. LEHR'
Born in 1921.
3050 Minnesota World Trade Center
30 E. Seventh St.
St. Paul, MN
Former chairman of the board and chief executive officer, Minnesota Mining and
Manufacturing Company (3M). Director, Jack Eckerd Corporation (drugstores).
Advisory Director, Peregrine Inc. (microelectronics).
WILLIAM R. PEARCE+*
Born in 1927.
901 S. Marquette Ave.
Minneapolis, MN
President of all funds in the IDS MUTUAL FUND GROUP since June 1993. Former
vice chairman of the board, Cargill, Incorporated (commodity merchants and
processors).
EDSON W. SPENCER
Born in 1926.
4900 IDS Center
80 S. 8th St.
Minneapolis, MN
President, Spencer Associates Inc. (consulting). Chairman of the board, Mayo
Foundation (healthcare). Former chairman of the board and chief executive
officer, Honeywell Inc. Director, Boise Cascade Corporation (forest products)
and CBS Inc. Member of International Advisory Councils, Robert Bosch (Germany)
and NEC (Japan).
JOHN R. THOMAS**
Born in 1937.
2900 IDS Tower
Minneapolis, MN
Senior vice president and director of American Express Financial Corporation.
WHEELOCK WHITNEY+
Born in 1926.
1900 Foshay Tower
821 Marquette Ave.
Minneapolis, MN
Chairman, Whitney Management Company (manages family assets).
C. ANGUS WURTELE
Born in 1934.
1101 S. 3rd St.
Minneapolis, MN
Chairman of the board and chief executive officer, The Valspar Corporation
(paints). Director, Bemis Corporation (packaging), Donaldson Company (air
cleaners & mufflers) and General Mills, Inc. (consumer foods).
-17-
<PAGE>
+ Member of executive committee.
' Member of joint audit committee.
* Interested person by reason of being an officer and employee of the fund.
**Interested person by reason of being an officer, director, employee and/or
shareholder of American Express Financial Corporation or American Express.
The board also has appointed officers who are responsible for day-to-day
business decisions based on policies it has established.
Besides Mr. Pearce, who is president, the fund's other officer is:
LESLIE L. OGG
Born in 1938.
901 S. Marquette Ave.
Minneapolis, MN
Vice president of all funds in the IDS MUTUAL FUND GROUP and general counsel and
treasurer of the publicly offered funds.
During the fiscal year that ended July 31, 1994, the members of the board, for
attending up to 49 meetings, received the following compensation, in total, from
all funds in the IDS MUTUAL FUND GROUP.
<TABLE>
<CAPTION>
Board compensation
Aggregate Retirement Estimated Total Cash
compensation benefits annual compensation
from the accrued as benefit on from the IDS
Board member fund fund expenses retirement MUTUAL FUND GROUP
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Lynne V. Cheney $ 782 $ 0 $750 $31,600
(part of year)
Robert F. Froehlke 1,895 1,570 750 76,600
Anne P. Jones 1,745 407 750 70,300
Donald M. Kendall 1,690 1,791 750 68,000
Melvin R. Laird 1,764 1,303 750 71,100
Lewis W. Lehr 1,774 1,776 731 71,500
William R. Pearce
(part of year) -- 684 750 --
Edson W. Spencer 1,755 855 400 70,700
Wheelock Whitney 1,829 765 750 73,800
</TABLE>
On July 31, 1994, the fund's directors and officers as a group owned less than
1% of the outstanding shares. During the fiscal year ended July 31, 1994, no
director or officer earned more than $60,000 from this fund. All directors and
officers as a group earned $9,858, including $9,503 of retirement plan expense,
from this fund.
CUSTODIAN
The fund's securities and cash are held by First Bank National Association, 180
E. Fifth St., St. Paul, MN 55101-1631, through a custodian agreement. The
custodian is permitted to deposit some or all of its securities in central
depository systems as allowed by federal law.
Members who are not officers of the fund or officers or directors of
American Express Financial Corporation receive an annual base fee of
$1,500. They receive a fee for all board and committee meetings they
attend. The fee is shared equally among each fund in the IDS MUTUAL
FUND GROUP holding concurrent meetings. The fees are $500 for Board,
Executive, Audit and Investment Review committees, $750 for Personnel
with out-of-state members receiving an additional $500 if an extra day
of travel is required. The Chair of Contracts receives an additional
$5,000. In addition members who retire after age 70 or earlier for
health reasons receive monthly retirement benefits of 1/2 of the base fee
on the date they retire divided by 12 for each month of service up to
120 months.
-18-
<PAGE>
INDEPENDENT AUDITORS
The financial statements contained in the Annual Report to shareholders, for the
fiscal year ended July 31, 1994, were audited by independent auditors, KPMG Peat
Marwick LLP, 4200 Norwest Center, 90 S. Seventh St., Minneapolis, MN
55402-3900. The independent auditors also provide other accounting and
tax-related services as requested by the fund.
FINANCIAL STATEMENTS
The Independent Auditors' Report and the Financial Statements, including Notes
to the Financial Statements and the Schedule of Investments in Securities,
contained in the 1994 Annual Report to shareholders, pursuant to Section 30(d)
of the Investment Company Act of 1940, as amended, are hereby incorporated in
this SAI by reference. No other portion of the Annual Report however, is
incorporated by reference.
PROSPECTUS
The prospectus for IDS Cash Management Fund dated Sept. 29, 1994 as revised
March 20, 1995 is hereby incorporated in this SAI by reference.
-19-
<PAGE>
APPENDIX A
DESCRIPTION OF MONEY MARKET SECURITIES
The types of instruments that form the major part of the fund's investments are
described below.
CERTIFICATES OF DEPOSIT -- A certificate of deposit is a negotiable receipt
issued by a bank or savings and loan association in exchange for the deposit of
funds. The issuer agrees to pay the amount deposited, plus interest, on the
date specified on the certificate.
TIME DEPOSIT -- A time deposit is a non-negotiable deposit in a bank for a fixed
period of time.
BANKERS' ACCEPTANCES -- A bankers' acceptance arises from a short- term credit
arrangement designed to enable businesses to obtain funds to finance commercial
transactions. It is a time draft drawn on a bank by an exporter or an importer
to obtain a stated amount of funds to pay for specific merchandise. The draft
is then "accepted" by a bank that, in effect, unconditionally guarantees to pay
the face value of the instrument on its maturity date.
COMMERCIAL PAPER -- Commercial paper is generally defined as unsecured
short-term notes issued in bearer form by large well- known corporations and
finance companies. Maturities on commercial paper range from one day to nine
months.
Commercial paper rated A by Standard & Poor's Corporation has the following
characteristics: Liquidity ratios are better than the industry average.
Long-term senior debt rating is "A" or better. The issuer has access to at
least two additional channels of borrowing. Basic earnings and cash flow have
an upward trend with allowances made for unusual circumstances. Typically, the
issuer's industry is well established, the issuer has a strong position within
its industry and the reliability and quality of management is unquestioned.
Issuers rated A are further rated by use of numbers 1, 2 and 3 to denote
relative strength within this highest classification.
A Prime rating is the highest commercial paper rating assigned by Moody's
Investors Services Inc. Issuers rated Prime are further rated by use of numbers
1, 2 and 3 to denote relative strength within this highest classification.
Among the factors considered by Moody's in assigning ratings for an issuer are
the following: (1) management; (2) economic evaluation of the industry and an
appraisal of speculative type risks which may be inherent in certain areas; (3)
competition and customer acceptance of products; (4) liquidity; (5) amount and
quality of long-term debt; (6) ten year earnings trends; (7) financial strength
of a parent company and the relationships which exist with the issuer; and (8)
recognition by management of obligations which may be present or may arise as a
result of public interest questions and preparations to meet such obligations.
-20-
<PAGE>
LETTERS OF CREDIT -- A letter of credit is a short-term note issued in bearer
form with a bank letter of credit which provides that the bank pay to the bearer
the amount of the note upon presentation.
U.S. TREASURY BILLS -- Treasury bills are issued with maturities of any period
up to one year. Three-month and six-month bills are currently offered by the
Treasury on 13-week and 26-week cycles respectively and are auctioned each week
by the Treasury. Treasury bills are issued in book entry form and are sold only
on a discount basis, i.e. the difference between the purchase price and the
maturity value constitutes interest income for the investor. If they are sold
before maturity, a portion of the income received may be a short-term capital
gain.
U.S. GOVERNMENT AGENCY SECURITIES -- Federal agency securities are debt
obligations which principally result from lending programs of the U.S.
government. Housing and agriculture have traditionally been the principal
beneficiaries of Federal credit programs, and agencies involved in providing
credit to agriculture and housing account for the bulk of the outstanding agency
securities.
REPURCHASE AGREEMENTS -- A repurchase agreement involves the acquisition of
securities by the fund, with the concurrent agreement by a bank (or securities
dealer if permitted by law or regulation), to reacquire the securities at the
fund's cost, plus interest, within a specified time. The fund thereby receives
a fixed rate of return on this investment, one that is insulated from market and
rate fluctuations during the holding period. In these transactions, the
securities acquired by the fund have a total value equal to or in excess of the
value of the repurchase agreement and are held by the fund's custodian until
required.
FLOATING RATE INSTRUMENTS -- These instruments pay interest at a rate tied to an
external interest rate. The rate changes whenever there is a change in the
external interest rate.
If American Express Financial Corporation becomes aware that a security owned
by the fund is downgraded below the second highest rating, American Express
Financial Corporation will either sell the security or recommend to the fund's
board of directors why it should not be sold.
-21-
<PAGE>
APPENDIX B
DOLLAR-COST AVERAGING
A technique that works well for many investors is one that eliminates random buy
and sell decisions. One such system is dollar-cost averaging. Dollar-cost
averaging involves building a portfolio through the investment of fixed amounts
of money on a regular basis regardless of the price or market condition. This
may enable an investor to smooth out the effects of the volatility of the
financial markets. By using this strategy, more shares will be purchased when
the price is low and less when the price is high. As the accompanying chart
illustrates, dollar-cost averaging tends to keep the average price paid for the
shares lower than the average market price of shares purchased, although there
is no guarantee.
While this does not ensure a profit and does not protect against a loss if the
market declines, it is an effective way for many shareholders who can continue
investing through changing market conditions to accumulate shares in a fund to
meet long term goals.
DOLLAR-COST AVERAGING
- --------------------------------------------------------------------------------
REGULAR MARKET PRICE SHARES
INVESTMENT OF A SHARE ACQUIRED
- --------------------------------------------------------------------------------
$100 $ 6.00 16.7
100 4.00 25.0
100 4.00 25.0
100 6.00 16.7
100 5.00 20.0
---- ------ -----
$500 $25.00 103.4
AVERAGE MARKET PRICE OF A SHARE OVER 5 PERIODS:
$5.00 ($25.00 DIVIDED BY 5).
THE AVERAGE PRICE YOU PAID FOR EACH SHARE:
$4.84 ($500 DIVIDED BY 103.4).
-22-
<PAGE>
Independent auditors' report
The board of directors and shareholders
IDS Money Market Series, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in
securities, of IDS Cash Management Fund (a series of IDS Money
Market Series, Inc.) as of July 31, 1994, and the related
statement of operations for the year then ended and the
statements of changes in net assets for each of the years in
the two-year period ended July 31, 1994, and the financial
highlights for each of the years in the ten-year period ended
July 31, 1994. These financial statements and the financial
highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and the financial highlights are free
of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. Investment securities held in custody
are confirmed to us by the custodian. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial
position of IDS Cash Management Fund at July 31, 1994, and the
results of its operations for the year then ended and the
changes in its net assets for each of the years in the two-year
period ended July 31, 1994, and the financial highlights for
the periods stated in the first paragraph above, in conformity
with generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
KPMG Peat Marwick LLP
Minneapolis, Minnesota
September 2, 1994
<PAGE>
<TABLE>
Financial statements
Statement of assets and liabilities
IDS Cash Management Fund
July 31, 1994
_____________________________________________________________________________________________________________
<CAPTION>
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,154,081,000) $1,154,081,000
Accrued interest receivable 1,342,103
_____________________________________________________________________________________________________________
Total assets 1,155,423,103
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 207,399
Dividends payable to shareholders 378,059
Accrued investment management and services fee 310,984
Accrued distribution fee 94,980
Accrued transfer agency fee 314,716
Other accrued expenses 516,186
_____________________________________________________________________________________________________________
Total liabilities 1,822,324
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,153,600,779
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 1,153,679,862 shares $ 11,536,799
Additional paid-in capital 1,142,094,699
Undistributed net investment income 210
Accumulated net realized loss on investments (30,929)
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $1,153,600,779
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 1.00
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
Statement of operations
IDS Cash Management Fund
Year ended July 31, 1994
_____________________________________________________________________________________________________________
<CAPTION>
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Interest $37,786,889
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 3,600,005
Distribution fee 1,182,206
Transfer agency fee 4,605,668
Compensation of directors 8,926
Compensation of officers 932
Custodian fees 106,981
Postage 473,615
Registration fees 167,779
Reports to shareholders 102,819
Audit fees 28,000
Administrative 4,676
Other 22,674
_____________________________________________________________________________________________________________
Total expenses 10,304,281
Voluntary reimbursement of expenses by investment manager (336,311)
_____________________________________________________________________________________________________________
Total net expenses 9,967,970
_____________________________________________________________________________________________________________
Investment income -- net 27,818,919
_____________________________________________________________________________________________________________
Realized gain -- net
_____________________________________________________________________________________________________________
Net realized gain (Note 3) 6,546
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $27,825,465
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
Financial statements
Statement of changes in net assets
IDS Cash Management Fund
Year ended July 31,
_____________________________________________________________________________________________________________
<CAPTION>
Operations and distributions 1994 1993
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 27,818,919 $ 26,420,241
Net realized gain 6,546 3,479
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 27,825,465 26,423,720
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (27,818,831) (26,420,312)
_____________________________________________________________________________________________________________
Capital share transactions at constant $1.00 net asset value
_____________________________________________________________________________________________________________
Proceeds from sales 3,450,597,013 2,467,622,996
Net asset value of shares issued in
reinvestment of distributions 26,872,301 25,832,477
Payments for redemptions of shares (3,376,885,865) (2,670,180,160)
_____________________________________________________________________________________________________________
Increase (decrease) in net assets from capital share transactions 100,583,449 (176,724,687)
_____________________________________________________________________________________________________________
Total increase (decrease) in net assets 100,590,083 (176,721,279)
_____________________________________________________________________________________________________________
Net assets at beginning of year 1,053,010,696 1,229,731,975
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of $210
and $122) $1,153,600,779 $1,053,010,696
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
IDS Cash Management Fund
______________________________________________________________________________
1. Summary of significant accounting policies
The fund is a series of IDS Money Market Series, Inc.
and is registered under the Investment Company Act of
1940 (the 1940 Act), as amended, as a diversified,
open-end management investment company. Significant
accounting policies followed by the fund are
summarized below:
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
Since the fund's policy is to comply with all
sections of the Internal Revenue Code applicable to
regulated investment companies and to distribute all
of its taxable income to shareholders, no provision
for income or excise taxes is 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 amortization of premium and discount, is
accrued daily.
______________________________________________________________________________
2. Expenses
Under terms of an agreement dated Nov. 14, 1991, the
fund pays IDS Financial Corporation (IDS) a fee for
managing its investments, recordkeeping and other
specified services. The fee is a percentage of the
fund's average daily net assets consisting of an
annual asset charge reducing percentages from 0.34%
to 0.26% annually.
<PAGE>
Notes to Financial Statements
IDS Cash Management Fund
______________________________________________________________________________
2. Expenses (continued)
The fund also pays IDS a distribution fee at an
annual rate of $6 per shareholder account and a
transfer agency fee at an annual rate of $24 per
shareholder account. Effective July 1, 1994, the
transfer agency fee has been reduced to an annual
rate of $20 per shareholder account. The transfer
agency fee is reduced by earnings on monies pending
shareholder redemptions.
IDS will assume and pay any expenses (except taxes
and brokerage commissions) that exceed the most
restrictive applicable state expense limitation.
During the period ended July 31, 1994, IDS
voluntarily reimbursed a portion of fund expenses.
The fund has a retirement plan for its independent
directors. Upon retirement directors receive monthly
payments equal to one-half of the retainer fee for as
many months as they served as directors up to 120
months. There are no death benefits. The plan is not
funded but the fund recognizes the cost of payments
during the time the directors serve on the board. The
retirement plan expense amounted to $9,503 for the
year ended July 31, 1994.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of
securities aggregated $7,371,880,624 and
$7,261,527,666, respectively, for the year ended July
31, 1994. Realized gains and losses are determined on
an identified cost basis.
______________________________________________________________________________
4. Financial highlights
"Financial highlights" showing per share data and
selected information is presented on page 5 of the
prospectus.
<PAGE>
<TABLE>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
July 31, 1994 investments compared to net assets)
<CAPTION>
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (5.7%)
U.S. Treasury Bills
12-15-94 3.58 % $10,000,000 $ 9,867,750
12-15-94 3.59 11,000,000 10,853,682
Farm Credit Disc Nt
10-03-94 3.43 5,000,000 5,000,000
Federal Natl Mtge Assn
08-25-94 3.50 10,000,000 9,999,644
10-31-94 3.55 10,000,000 9,911,133
06-01-95 4.52 10,000,000 (c) 10,000,000
Student Loan Mtge Assn
09-08-94 4.53 10,000,000 (c) 10,000,000
_____________________________________________________________________________________________________________________________
Total U.S. government agencies
(Cost: $65,632,209) 65,632,209
_____________________________________________________________________________________________________________________________
Bankers' acceptance (0.9%)
NationsBank of North Carolina
09-07-94 4.53 10,000,000 9,951,250
_____________________________________________________________________________________________________________________________
Total bankers' acceptance
(Cost: $9,951,250) 9,951,250
_____________________________________________________________________________________________________________________________
Certificates of deposit (7.1%)
Domestic
ABN AMRO Yankee
09-06-94 4.55 15,000,000 14,999,377
Canadian Imperial Bank Yankee
10-12-94 4.84 10,000,000 10,000,000
National Detroit
09-19-94 4.68 10,000,000 10,000,000
09-22-94 4.51 5,000,000 5,001,396
Royal Canada Yankee
08-22-94 4.44 10,000,000 (c) 10,000,000
Societe Generale Yankee
10-03-94 4.58 10,000,000 10,000,157
10-11-94 4.60 15,000,000 15,003,886
10-25-94 3.60 7,000,000 7,000,000
_____________________________________________________________________________________________________________________________
Total certificates of deposit
(Cost: $82,004,816) 82,004,816
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
July 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Commercial paper (55.7%)
Automotive & related (2.6%)
Ford Motor Credit
08-16-94 4.55 % $12,000,000 $ 11,974,500
09-20-94 4.54 10,000,000 9,935,000
09-26-94 4.59 7,900,000 7,842,089
______________
Total 29,751,589
_____________________________________________________________________________________________________________________________
Banks and savings & loans (6.0%)
Banc One Diversified
Services
09-06-94 4.48 8,000,000 7,962,591
BBV Finance Delaware
08-01-94 4.36 13,000,000 12,996,873
09-19-94 4.47 7,900,000 7,850,309
Commerzbank US Finance
08-15-94 4.55 7,000,000 6,986,000
09-09-94 4.50 5,025,000 4,999,533
Natl Australia Funding
08-01-94 4.44 10,000,000 9,997,550
08-23-94 4.43 8,100,000 8,076,240
Natl Bank
Detroit Canada
08-10-94 4.38 10,000,000 9,986,708
______________
Total 68,855,804
_____________________________________________________________________________________________________________________________
Computers & office equipment (0.4%)
Pitney Bowes
Credit
09-28-94 4.54 4,800,000 4,764,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities
<PAGE>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
July 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Commercial paper (cont'd)
Financial services (23.3%)
Amer General
Finance
08-05-94 4.41 % $ 8,000,000 (b) $ 7,994,160
08-08-94 4.44 10,700,000 (b) 10,688,230
09-22-94 4.51 900,000 893,966
09-30-94 4.54 10,000,000 (b) 9,922,500
Associates
North Amer
09-22-94 4.54 11,600,000 11,521,700
Beneficial
08-26-94 4.36 30,800,000 30,699,746
01-20-95 4.62 5,000,000 (c) 5,000,000
Ciesco LP
08-03-94 4.42 8,400,000 8,395,893
CIT Group Holdings
09-23-94 4.58 25,000,000 24,826,215
11-02-94 4.82 4,700,000 4,641,087
Commercial Credit
08-23-94 4.59 7,900,000 7,875,931
Corporate Asset
Funding
08-19-94 4.55 5,400,000 5,386,440
Eiger Capital
08-03-94 4.49 6,602,000 (b) 6,598,721
08-24-94 4.39 17,500,000 (b) 17,446,892
Fleet Funding
08-01-94 4.36 10,000,000 (b) 9,997,594
08-08-94 4.50 2,200,000 (b) 2,197,536
See accompanying notes to investments in securities.
<PAGE>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
July 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Commercial paper (cont'd)
Financial services (cont'd)
General Electric
Capital
08-11-94 4.67 % $10,000,000 $ 9,984,600
08-19-94 4.54 8,300,000 8,279,158
Goldman Sachs
Group LP
08-12-94 4.52 5,000,000 4,991,875
08-18-94 4.43 2,600,000 2,593,962
09-07-94 4.68 6,600,000 6,566,753
Merrill Lynch
08-02-94 4.536 10,000,000 (c) 10,000,000
08-17-94 4.57 5,200,000 5,188,170
08-22-94 4.41 14,850,000 14,808,445
Morgan Guaranty
05-10-95 4.58 10,000,000 (c) 9,995,331
Morgan Stanley
Group
05-17-95 4.87 5,000,000 (c) 5,001,836
Penney (JC) Funding
08-02-94 4.42 4,500,000 4,498,350
Toyota Motor Credit
08-15-94 4.53 10,000,000 9,979,956
USAA Capital
08-11-94 4.40 13,000,000 12,981,063
______________
Total 268,956,110
_____________________________________________________________________________________________________________________________
Food (2.9%)
Cargill Global Funding
09-19-94 4.54 9,500,000 (b) 9,439,438
CPC Intl
08-19-94 4.40 9,400,000 (b) 9,377,179
08-25-94 4.45 8,550,000 (b) 8,522,768
Sysco
08-08-94 4.35 6,500,000 (b) 6,492,980
______________
Total 33,832,365
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
July 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Commercial paper (cont'd)
Health care (2.2%)
Pfizer
08-04-94 4.42 % $ 7,700,000 $ 7,695,294
Sandoz
08-11-94 4.71 2,600,000 2,595,970
08-23-94 4.52 15,000,000 14,955,300
______________
Total 25,246,564
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.3%)
ABB Treasury
10-21-94 4.73 15,000,000 (b) 14,838,150
_____________________________________________________________________________________________________________________________
Industrial transportation (2.0%)
Consolidated Rail
08-01-94 4.52 4,900,000 (b) 4,898,775
08-29-94 4.58 10,100,000 (b) 10,061,704
Norfolk Southern
08-17-94 4.37 8,000,000 (b) 7,982,640
______________
Total 22,943,119
_____________________________________________________________________________________________________________________________
Insurance (2.2%)
Lincoln Natl
08-24-94 4.41 11,400,000 (b) 11,365,246
Metlife Funding
09-15-94 4.48 8,000,000 7,953,731
SAFECO Credit
08-12-94 4.68 6,000,000 5,989,968
______________
Total 25,308,945
_____________________________________________________________________________________________________________________________
Media (1.7%)
Reed Elsevier
09-09-94 4.47 2,000,000 (b) 1,989,864
09-13-94 4.48 7,200,000 (b) 7,159,950
09-21-94 4.55 10,000,000 (b) 9,933,455
______________
Total 19,083,269
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
July 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Commercial paper (cont'd)
Retail (0.4%)
Colgate Palmolive
08-10-94 4.52 % $ 5,100,000 (b) $ 5,092,988
_____________________________________________________________________________________________________________________________
Utilities - electric (4.7%)
Bayshore Fuel
08-10-94 4.35 6,900,000 6,890,892
08-18-94 4.50 4,362,000 4,351,709
Gateway Fuel
08-05-94 4.50 6,106,000 6,101,441
Pacific Energy
Fuel
09-01-94 4.61 10,791,000 10,745,696
09-20-94 4.56 16,280,000 16,173,474
Pennsylvania Power
& Light Energy Trust
08-15-94 4.36 10,000,000 9,980,756
______________
Total 54,243,968
_____________________________________________________________________________________________________________________________
Utilities - gas (4.4%)
Columbia Fuel
08-15-94 4.38 17,680,000 17,645,819
09-01-94 4.62 15,000,000 14,937,025
Southern California Gas
08-10-94 4.36 8,300,000 (b) 8,289,019
08-24-94 4.40 10,000,000 (b) 9,969,583
______________
Total 50,841,446
_____________________________________________________________________________________________________________________________
Utilities - telephone (1.6%)
AT&T Capital
08-23-94 4.41 8,800,000 8,774,363
US WEST Communications
09-08-94 4.53 9,500,000 9,452,500
______________
Total 18,226,863
_____________________________________________________________________________________________________________________________
Total commercial paper
(Cost: $641,985,180) 641,985,180
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
July 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Letters of credit (30.7%)
ABN Amro-
Sci Systems
08-05-94 4.38 % $ 9,850,000 $ 9,842,859
08-22-94 4.41 12,000,000 11,966,458
Bank of Amer-
AES Barbers Point
08-26-94 4.42 11,000,000 10,963,700
09-09-94 4.68 20,000,000 19,894,083
Bank of Amer-
Hyundai Motor Finance
09-19-94 4.54 7,200,000 7,154,100
Banque Paribas-
Cogentrix of Richmond
09-15-94 4.72 16,000,000 15,902,240
Banque Paribas-
James River Funding
08-09-94 4.40 18,800,000 18,777,179
Banque Paribas-
Southeast Paper
Manufacturing
08-23-94 4.44 6,072,000 6,054,108
Barclays Bank-
Mission Funding
08-19-94 4.62 5,750,000 (b) 5,735,401
08-25-94 4.42 23,835,000 23,759,258
Barclays Bank-
FPL Fuels
08-08-94 4.38 9,000,000 8,990,213
09-09-94 4.50 15,800,000 15,719,565
Canadian Imperial Bank-
Hahn Issuing
08-04-94 4.52 10,000,000 9,993,750
08-08-94 4.52 5,700,000 5,693,588
08-25-94 4.42 10,000,000 9,968,222
Canadian Imperial Bank-
Commed Fuel
09-02-94 4.66 10,705,000 10,658,290
Credit Suisse-
Commed Fuel
08-18-94 4.55 11,725,000 11,696,968
08-22-94 4.55 8,356,000 8,331,870
09-16-94 4.74 9,078,000 9,021,111
See accompanying notes to investments in securities.
<PAGE>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
July 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Letters of credit (cont'd)
Credit Suisse-
Pasminco
08-05-94 4.47 % $12,982,000 $ 12,972,372
Credit Suisse-
Pemex Capital
08-19-94 4.58 6,000,000 5,984,800
08-22-94 4.57 7,000,000 6,979,651
First Bank-
Builders Finance
10-06-94 4.80 4,800,000 4,756,933
First Chicago-
Commed Fuel
08-12-94 4.40 11,500,000 11,481,852
08-24-94 4.43 5,617,000 5,599,837
Natl Australia-
Woodside Finance
08-16-94 4.55 12,000,000 (b) 11,974,330
08-19-94 4.38 9,000,000 (b) 8,978,250
09-13-94 4.77 9,100,000 (b) 9,046,196
09-14-94 4.55 9,000,000 (b) 8,948,020
Societe Generale-
Michelin
08-12-94 4.57 10,000,000 9,983,569
Societe Generale-
Nafin Funding
08-19-94 4.47 10,042,000 (b) 10,017,174
Swiss Bank-
Pemex Capital
08-04-94 4.50 7,200,000 7,195,520
Westdeutsche Landesbank-
Arbour National Mtge
08-29-94 4.60 8,600,000 8,567,248
10-05-94 4.60 12,000,000 11,898,830
_____________________________________________________________________________________________________________________________
Total letters of credit
(Cost: $354,507,545) 354,507,545
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,154,081,000)(d) $1,154,081,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
Investments in securities
IDS Cash Management Fund
July 31, 1994
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the
Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors".
This security has been determined to be liquid under guidelines established by the board of directors.
(c) Interest rate varies based on current market indicies; rate shown is the effective rate on July 31, 1994.
(d) Also represents the cost of securities for federal income tax purposes at July 31, 1994.
</TABLE>
<PAGE>
PART C. OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
<TABLE>
<C> <C> <S>
(a) FINANCIAL STATEMENTS:List of financial statements filed as part of this Post-Effective
Amendment to the Registration Statement:
- Independent Auditors' Report dated September 2, 1994
- Statement of Assets and Liabilities, July 31, 1994
- Statement of Operations, Year ended July 31, 1994
- Statement of Changes in Net Assets, for the two-year period ended July 31, 1993
and July 31, 1994
- Notes to Financial Statements
- Investments in Securities, July 31, 1994
- Notes to Investments in Securities
(b) EXHIBITS:
1. Articles of Incorporation, as amended Nov. 14, 1991, filed as Exhibit No. 1 to
Registrant's Post-Effective Amendment No. 34 to Registration Statement No.
2-54516, is incorporated herein by reference.
2. By-laws, as amended January 12, 1989, filed as Exhibit No. 2 to Registrant's
Post-Effective Amendment No. 24 to Registration Statement No. 2-54516, is
incorporated herein by reference.
3. Not Applicable.
4. Stock certificate, filed as Exhibit 4 to Registrant's Amendment No. 12 to
Registration Statement No. 2-54516 dated September 18, 1982, is incorporated
herein by reference.
5. Form of Investment Management Services Agreement between Registrant and American
Express Financial Corporation, dated March 20, 1995, is filed electronically
herewith.
6. Form of Distribution Agreement between Registrant and American Express Financial
Advisors Inc., dated March 20, 1995, is filed electronically herewith.
7. All employees are eligible to participate in a profit sharing plan. Entry into
the plan is Jan. 1 or July 1. The Registrant contributes each year an amount up
to 15 percent of their annual salaries, the maximum deductible amount permitted
under Section 404(a) of the Internal Revenue Code.
8. Form of Custodian Agreement between Registrant and American Express Trust
Company, dated March 20, 1995, is filed electronically herewith.
9. (a) Copy of Plan and Agreement of Merger dated April 10, 1986, filed as Exhibit 9
to Registrant's Post-Effective Amendment No. 19 to Registration Statement No.
2-54516, is incorporated herein by reference.
9. (b) Form of Transfer Agency Agreement between Registrant and American Express
Financial Corporation, dated March 20, 1995, is filed electronically herewith.
9. (c) Copy of License Agreement between the Registrant and IDS Financial
Corporation dated Jan. 25, 1988, filed electronically as Exhibit 9(c) to
Registrant's Post-Effective Amendment No. 26 to Registration Statement No.
2-54516, is incorporated herein by reference.
9. (d) Form of Shareholder Service Agreement between Registrant and American Express
Financial Advisors Inc., dated March 20, 1995, is filed electronically herewith.
9. (e) Form of Administrative Services Agreement between Registrant and American
Express Financial Corporation, dated March 20, 1995, is filed electronically
herewith.
9. (f) Copy of Agreement and Plan of Reorganization, dated Sept. 8, 1994, between
IDS Cash Management Fund, a series of IDS Money Market Series, Inc. and IDS
Planned Investment Account, also a series of IDS Money Market Series, Inc., filed
electronically as Exhibit 4 to Registrant's Pre-Effective Amendment No. 1 on Form
N-14, is incorporated herein by reference.
10. Not applicable.
</TABLE>
II-1
<PAGE>
<TABLE>
<C> <C> <S>
11. Independent Auditors' Consent is filed electronically herewith.
12. None.
13. Not applicable.
14. Forms of Keogh, IRA and other retirement plans, filed as Exhibits 14(a) through
14(n) to IDS Growth Fund, Inc., Post-Effective Amendment No. 34 to Registration
Statement No. 2-38355, are incorporated herein by reference.
15. Form of Plan and Agreement of Distribution between Registrant and American
Express Financial Advisors Inc., dated March 20, 1995, is filed electronically
herewith.
16. Copy of schedule for computation of each performance quotation provided in the
Registration Statement in response to Item 22, filed as Exhibit 16 to
Post-Effective Amendment No. 35 is incorporated herein by reference.
17. Financial Data Schedule is filed electronically herewith.
18. (a) Directors' Power of Attorney, dated Nov. 10, 1994, filed as Exhibit 18(a) to
Registrant's Post-Effective Amendment No. 41, is incorporated herein by
reference.
18. (b) Officers' Power of Attorney, dated June 1, 1993, to sign Amendments to this
Registration Statement, filed electronically as Exhibit No. 17(b) to Registrant's
Post-Effective Amendment No. 39, is incorporated herein by reference.
</TABLE>
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES
<TABLE>
<CAPTION>
(1) (2)
NUMBER OF
RECORD
AS OF
JANUARY 23,
TITLE OF CLASS 1995
- -------------- ------------
<S> <C>
Common Stock 180,841
</TABLE>
II-2
<PAGE>
Item 27. Indemnification
The Articles of Incorporation of the registrant provide that the
Fund shall indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that she or he
is or was a director, officer, employee or agent of the Fund, or is
or was serving at the request of the Fund as a director, officer,
employee or agent of another company, partnership, joint venture,
trust or other enterprise, to any threatened, pending or completed
action, suit or proceeding, wherever brought, and the Fund may
purchase liability insurance and advance legal expenses, all to the
fullest extent permitted by the laws of the State of Minnesota, as
now existing or hereafter amended. The By-laws of the registrant
provide that present or former directors or officers of the Fund
made or threatened to be made a party to or involved (including as
a witness) in an actual or threatened action, suit or proceeding
shall be indemnified by the Fund to the full extent authorized by
the Minnesota Business Corporation Act, all as more fully set forth
in the By-laws filed as an exhibit to this registration statement.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Any indemnification hereunder shall not be exclusive of any other
rights of indemnification to which the directors, officers,
employees or agents might otherwise be entitled. No
indemnification shall be made in violation of the Investment
Company Act of 1940.
<PAGE>
<PAGE>
PAGE 1
<TABLE><CAPTION>
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)
Directors and officers of American Express Financial Corporation who are directors and/or
officers of one or more other companies:
<S> <C> <C>
Ronald G. Abrahamson, Vice President--Service Quality and Reengineering
American Express Financial Advisors IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Service Quality
and Reengineering
American Express Service Corporation Vice President
Douglas A. Alger, Vice President--Total Compensation
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Total Compensation
Jerome R. Amundson, Vice President and Controller--Investment Accounting
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Controller-Investment
Accounting
Peter J. Anderson, Director and Senior Vice President--Investments
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Investments
IDS Advisory Group Inc. Director and Chairman
of the Board
IDS Capital Holdings Inc. Director and President
IDS Fund Management Limited Director
IDS International, Inc. Director, Chairman of the
Board and Executive Vice
President
IDS Securities Corporation Executive Vice President-
Investments
NCM Capital Management Group, Inc. 2 Mutual Plaza Director
501 Willard Street
Durham, NC 27701
Ward D. Armstrong, Vice President-Sales and Marketing, American Express Institutional Services
American Express Financial Advisors IDS Tower 10 Vice President-Sales and
Minneapolis, MN 55440 Marketing, American
Express Institutional
Services
Kent L. Ashton, Vice President--Financial Education Services
American Express Financial Advisors IDS Tower 10 Vice President-Financial
Minneapolis, MN 55440 Education Services
<PAGE>
PAGE 2
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Joseph M. Barsky III, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-Senior
Minneapolis, MN 55440 Portfolio Manager
IDS Advisory Group Inc. Vice President
Robert C. Basten, Vice President--Tax and Business Services
American Express Financial Advisors IDS Tower 10 Vice President-Tax
Minneapolis, MN 55440 and Business Services
American Express Tax & Business Director, President and
Services Inc. Chief Executive Officer
Timothy V. Bechtold, Vice President--Insurance Product Development
American Express Financial Advisors IDS Tower 10 Vice President-Insurance
Minneapolis, MN 55440 Product Development
IDS Life Insurance Company Vice President-Insurance
Product Development
Carl E. Beihl, Vice President--Strategic Technology Planning
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Strategic Technology
Planning
Alan F. Bignall, Vice President--Financial Planning Systems
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Financial Planning
Systems
American Express Service Corporation Vice President
John C. Boeder, Vice President--Mature Market Group
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Mature Market Group
IDS Life Insurance Company of New York Box 5144 Director
Albany, NY 12205
Karl J. Breyer, Director and Senior Vice President--Corporate Affairs and General Counsel
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Corporate Affairs and
Special Counsel
American Express Minnesota Foundation Director
IDS Aircraft Services Corporation Director and President
<PAGE>
PAGE 3
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Harold E. Burke, Vice President and Assistant General Counsel
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
American Express Service Corporation Vice President
Daniel J. Candura, Vice President--Marketing Support
American Express Financial Advisors IDS Tower 10 Vice President-Marketing
Minneapolis, MN 55440 Support
Cynthia M. Carlson, Vice President--American Express Securities Services
American Enterprise Investment IDS Tower 10 Director, President and
Services Inc. Minneapolis, MN 55440 Chief Executive Officer
American Express Financial Advisors Vice President-IDS
Securities Services
Orison Y. Chaffee III, Vice President--Field Real Estate
American Express Financial Advisors IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Real Estate
James E. Choat, Director and Senior Vice President--Field Management
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Field Management
American Express Minnesota Foundation Director
American Express Service Corporation Vice President
IDS Insurance Agency of Alabama Inc. Vice President--North
Central Region
IDS Insurance Agency of Arkansas Inc. Vice President--North
Central Region
IDS Insurance Agency of Massachusetts Inc. Vice President--North
Central Region
IDS Insurance Agency of Nevada Inc. Vice President--North
Central Region
IDS Insurance Agency of New Mexico Inc. Vice President--North
Central Region
IDS Insurance Agency of North Carolina Inc. Vice President--North
Central Region
IDS Insurance Agency of Ohio Inc. Vice President--North
Central Region
IDS Insurance Agency of Wyoming Inc. Vice President-- North
Central Region
IDS Property Casualty Insurance Co. Director
<PAGE>
PAGE 4
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Kenneth J. Ciak, Vice President and General Manager--IDS Property Casualty
American Express Financial Advisors IDS Tower 10 Vice President and General
Minneapolis, MN 55440 Manager-IDS Property
Casualty
IDS Property Casualty Insurance Co. I WEG Blvd. Director and President
DePere, Wisconsin 54115
Alan R. Dakay, Vice President--Institutional Insurance Marketing
American Enterprise Life Insurance Co. IDS Tower 10 Director and President
Minneapolis, MN 55440
American Express Financial Advisors Vice President -
Institutional Insurance
Marketing
American Partners Life Insurance Co. Director and President
IDS Life Insurance Company Vice President -
Institutional Insurance
Marketing
Regenia David, Vice President--Systems Services
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Systems Services
William H. Dudley, Director and Executive Vice President--Investment Operations
American Express Financial Advisors IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-
Investment Operations
IDS Advisory Group Inc. Director
IDS Capital Holdings Inc. Director
IDS Futures Corporation Director
IDS Futures III Corporation Director
IDS International, Inc. Director
IDS Securities Corporation Director, Chairman of the
Board, President and
Chief Executive Officer
Roger S. Edgar, Director and Senior Vice President--Information Systems
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Information Systems
<PAGE>
PAGE 5
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Gordon L. Eid, Director, Senior Vice President and Deputy General Counsel
American Express Financial Advisors IDS Tower 10 Senior Vice President and
Minneapolis, MN 55440 General Counsel
IDS Insurance Agency of Alabama Inc. Director and Vice President
IDS Insurance Agency of Arkansas Inc. Director and Vice President
IDS Insurance Agency of Massachusetts Inc. Director and Vice President
IDS Insurance Agency of Nevada Inc. Director and Vice President
IDS Insurance Agency of New Mexico Inc. Director and Vice President
IDS Insurance Agency of North Carolina Inc. Director and Vice President
IDS Insurance Agency of Ohio Inc. Director and Vice President
IDS Insurance Agency of Wyoming Inc. Director and Vice President
IDS Real Estate Services, Inc. Vice President
Investors Syndicate Development Corp. Director
Robert M. Elconin, Vice President--Government Relations
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Government Relations
IDS Life Insurance Company Vice President
Mark A. Ernst, Vice President--Retail Services
American Enterprise Investment IDS Tower 10 Director
Services Inc. Minneapolis, MN 55440
American Express Financial Advisors Vice President-
Retail Services
American Express Tax & Business Director and Chairman of
Services Inc. the Board
Gordon M. Fines, Vice President--Mutual Fund Equity Investments
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Mutual Fund Equity
Investments
IDS Advisory Group Inc. Executive Vice President
IDS International, Inc. Vice President and
Portfolio Manager
<PAGE>
PAGE 6
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Louis C. Fornetti, Director, Senior Vice President and Chief Financial Officer
American Enterprise Investment IDS Tower 10 Vice President
Services Inc. Minneapolis, MN 55440
American Express Financial Advisors Senior Vice President and
Chief Financial Officer
American Express Tax & Business Director
Services Inc.
American Express Trust Company Director
IDS Cable Corporation Director
IDS Cable II Corporation Director
IDS Capital Holdings Inc. Senior Vice President
IDS Certificate Company Vice President
IDS Insurance Agency of Alabama Inc. Vice President
IDS Insurance Agency of Arkansas Inc. Vice President
IDS Insurance Agency of Massachusetts Inc. Vice President
IDS Insurance Agency of Nevada Inc. Vice President
IDS Insurance Agency of New Mexico Inc. Vice President
IDS Insurance Agency of North Carolina Inc. Vice President
IDS Insurance Agency of Ohio Inc. Vice President
IDS Insurance Agency of Wyoming Inc. Vice President
IDS Life Insurance Company Director
IDS Life Series Fund, Inc. Vice President
IDS Life Variable Annuity Funds A&B Vice President
IDS Property Casualty Insurance Co. Director and Vice President
IDS Real Estate Services, Inc. Vice President
IDS Sales Support Inc. Director
IDS Securities Corporation Vice President
Investors Syndicate Development Corp. Vice President
Robert G. Gilbert, Vice President--Real Estate
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Real Estate
John J. Golden, Vice President--Field Compensation Development
American Express Financial Advisors IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Compensation Development
Harvey Golub, Director
American Express Company American Express Tower Chairman and Chief
World Financial Center Executive Officer
New York, New York 10285
American Express Travel Chairman and Chief
Related Services Company, Inc. Executive Officer
National Computer Systems, Inc. 11000 Prairie Lakes Drive Director
Minneapolis, MN 55440
<PAGE>
PAGE 7
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Morris Goodwin Jr., Vice President and Corporate Treasurer
American Enterprise Investment IDS Tower 10 Vice President and
Services Inc. Minneapolis, MN 55440 Treasurer
American Enterprise Life Insurance Vice President and
Company Treasurer
American Express Financial Advisors Vice President and
Corporate Treasurer
American Express Minnesota Foundation Director, Vice President
and Treasurer
American Express Service Corporation Vice President and
Treasurer
American Express Tax & Business Vice President and
Services Inc. Treasurer
IDS Advisory Group Inc. Vice President and
Treasurer
IDS Aircraft Services Corporation Vice President and
Treasurer
IDS Cable Corporation Vice President and
Treasurer
IDS Cable II Corporation Vice President and
Treasurer
IDS Capital Holdings Inc. Vice President and
Treasurer
IDS Certificate Company Vice President and
Treasurer
IDS Deposit Corp. Director, President
and Treasurer
IDS Insurance Agency of Alabama Inc. Vice President and
Treasurer
IDS Insurance Agency of Arkansas Inc. Vice President and
Treasurer
IDS Insurance Agency of Massachusetts Inc. Vice President and
Treasurer
IDS Insurance Agency of Nevada Inc. Vice President and
Treasurer
IDS Insurance Agency of New Mexico Inc. Vice President and
Treasurer
IDS Insurance Agency of North Carolina Inc. Vice President and
Treasurer
IDS Insurance Agency of Ohio Inc. Vice President and
Treasurer
IDS Insurance Agency of Wyoming Inc. Vice President and
Treasurer
IDS International, Inc. Vice President and
Treasurer
IDS Life Insurance Company Vice President and
Treasurer
IDS Life Series Fund, Inc. Vice President and
Treasurer
<PAGE>
PAGE 8
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
IDS Life Variable Annuity Funds A&B Vice President and
Treasurer
IDS Management Corporation Vice President and
Treasurer
IDS Partnership Services Corporation Vice President and
Treasurer
IDS Plan Services of California, Inc. Vice President and
Treasurer
IDS Property Casualty Insurance Co. Vice President and
Treasurer
IDS Real Estate Services, Inc Vice President and
Treasurer
IDS Realty Corporation Vice President and
Treasurer
IDS Sales Support Inc. Director, Vice President
and Treasurer
IDS Securities Corporation Vice President and
Treasurer
Investors Syndicate Development Corp. Vice President and
Treasurer
NCM Capital Management Group, Inc. 2 Mutual Plaza Director
501 Willard Street
Durham, NC 27701
Sloan Financial Group, Inc. Director
Suzanne Graf, Vice President--Systems Services
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Systems Services
David A. Hammer, Vice President and Marketing Controller
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Marketing Controller
IDS Plan Services of California, Inc. Director and Vice President
Lorraine R. Hart, Vice President--Insurance Investments
American Enterprise Life IDS Tower 10 Vice President-Investments
Insurance Company Minneapolis, MN 55440
American Express Financial Advisors Vice President-Insurance
Investments
American Partners Life Insurance Co. Director and Vice
President-Investments
IDS Certificate Company Vice President-Investments
IDS Life Insurance Company Vice President-Investments
IDS Property Casualty Insurance Company Vice President-Investment
Officer
Investors Syndicate Development Corp. Vice President-Investments
<PAGE>
PAGE 9
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Scott A. Hawkinson, Vice President--Assured Assets Product Development and Management
American Express Financial Advisors IDS Tower 10 Vice President-Assured
Minneapolis, MN 55440 Assets Product
Development & Management
Raymond E. Hirsch, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-Senior
Minneapolis, MN 55440 Portfolio Manager
IDS Advisory Group Inc. Vice President
James G. Hirsh, Vice President and Assistant General Counsel
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
IDS Securities Corporation Director, Vice President
and General Counsel
Darryl G. Horsman, Vice President--Product Development and Technology, American Express
Institutional Services
American Express Trust Company IDS Tower 10 Vice President
Minneapolis, MN 55440
Kevin P. Howe, Vice President--Government and Customer Relations and Chief Compliance Officer
American Enterprise Investment IDS Tower 10 Vice President and
Services Inc. Minneapolis, MN 55440 Compliance Officer
American Express Financial Advisors Vice President-
Government and
Customer Relations
American Express Service Corporation Vice President
IDS Securities Corporation Vice President and Chief
Compliance Officer
David R. Hubers, Director, President and Chief Executive Officer
American Express Financial Advisors IDS Tower 10 Chairman, Chief Executive
Minneapolis, MN 55440 Officer and President
American Express Service Corporation Director and President
IDS Aircraft Services Corporation Director
IDS Certificate Company Director
IDS Life Insurance Company Director
IDS Plan Services of California, Inc. Director and President
IDS Property Casualty Insurance Co. Director
Marietta L. Johns, Director and Senior Vice President--Field Management
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Field Management
<PAGE>
PAGE 10
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Douglas R. Jordal, Vice President--Taxes
American Express Financial Advisors IDS Tower 10 Vice President-Taxes
Minneapolis, MN 55440
IDS Aircraft Services Corporation Vice President
Craig A. Junkins, Vice President--IDS 1994 Implementation Planning and Financial Planning
Development
American Express Financial Advisors IDS Tower 10 Vice President-IDS 1994
Minneapolis, MN 55440 Implementation Planning
and Financial Planning
Development
American Express Service Corporation Vice President
James E. Kaarre, Vice President--Marketing Information
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Marketing Information
Linda B. Keene, Vice President--Market Development
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Market Development
G. Michael Kennedy, Vice President--Investment Services and Investment Research
American Express Financial Advisors IDS Tower 10 Vice President-Investment
Minneapolis, MN 55440 Services and Investment
Research
Susan D. Kinder, Director and Senior Vice President--Human Resources
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Human Resources
American Express Minnesota Foundation Director
American Express Service Corporation Vice President
<PAGE>
PAGE 11
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Richard W. Kling, Director and Senior Vice President--Risk Management Products
American Enterprise Life Insurance Co. IDS Tower 10 Director and Chairman of
Minneapolis, MN 55440 the Board
American Express Financial Advisors Senior Vice President-
Risk Management Products
American Partners Life Insurance Co. Director and Chairman of
the Board
IDS Insurance Agency of Alabama Inc. Director and President
IDS Insurance Agency of Arkansas Inc. Director and President
IDS Insurance Agency of Massachusetts Inc. Director and President
IDS Insurance Agency of Nevada Inc. Director and President
IDS Insurance Agency of New Mexico Inc. Director and President
IDS Insurance Agency of North Carolina Inc. Director and President
IDS Insurance Agency of Ohio Inc. Director and President
IDS Insurance Agency of Wyoming Inc. Director and President
IDS Life Insurance Company Director and President
IDS Life Series Fund, Inc. Director and President
IDS Life Variable Annuity Funds A&B Member of Board of
Managers, Chairman of the
Board and President
IDS Property Casualty Insurance Co. Director and Chairman of
the Board
IDS Life Insurance Company P.O. Box 5144 Director, Chairman of the
of New York Albany, NY 12205 Board and President
Harold D. Knutson, Vice President--System Services
American Express Financial Advisors IDS Tower 10 Vice President--
Minneapolis, MN 55440 System Services
Paul F. Kolkman, Vice President--Actuarial Finance
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Actuarial Finance
IDS Life Insurance Company Director and Executive
Vice President
IDS Life Series Fund, Inc. Vice President and Chief
Actuary
Claire Kolmodin, Vice President--Service Quality
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Service Quality
Steven C. Kumagai, Director and Senior Vice President--Field Management and Business Systems
American Express Financial Advisors IDS Tower 10 Director and Senior Vice
Minneapolis, MN 55440 President-Field
Management and Business
Systems
American Express Service Corporation Vice President
<PAGE>
PAGE 12
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Edward Labenski, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Senior Portfolio
Manager
IDS Advisory Group Inc. Senior Vice President
Kurt A. Larson, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Senior Portfolio Manager
Lori J. Larson, Vice President--Variable Assets Product Development
American Express Financial Advisors IDS Tower 10 Vice President-Variable
Minneapolis, MN 55440 Assets Product
Development
IDS Cable Corporation Director and Vice President
IDS Cable II Corporation Director and Vice President
IDS Futures Brokerage Group Assistant Vice President-
General Manager/Director
IDS Futures Corporation Director and Vice President
IDS Futures III Corporation Director and Vice President
IDS Management Corporation Director and Vice President
IDS Partnership Services Corporation Director and Vice President
IDS Realty Corporation Director and Vice President
Ryan R. Larson, Vice President--IPG Product Development
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 IPG Product Development
IDS Life Insurance Company Vice President-
Annuity Product
Development
Daniel E. Laufenberg, Vice President and Chief U.S. Economist
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Chief U.S. Economist
Richard J. Lazarchic, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-Senior
Minneapolis, MN 55440 Portfolio Manager
<PAGE>
PAGE 13
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Peter A. Lefferts, Director, Senior Vice President and Chief Marketing Officer
American Express Financial Advisors IDS Tower 10 Senior Vice President and
Minneapolis, MN 55440 Chief Marketing Officer
American Express Trust Company Director and Chairman of
the Board
IDS Life Insurance Company Director and Executive
Vice President-Marketing
IDS Plan Services of California, Inc. Director
Investors Syndicate Development Corp. Director
Douglas A. Lennick, Director and Executive Vice President--Private Client Group
American Express Financial Advisors IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President-Private
Client Group
American Express Service Corporation Vice President
Mary J. Malevich, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Senior Portfolio
Manager
IDS International, Inc. Vice President and
Portfolio Manager
Fred A. Mandell, Vice President--Field Marketing Readiness
American Express Financial Advisors IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Marketing Readiness
William J. McKinney, Vice President--Field Management Support
American Express Financial Advisors IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Management Support
Thomas W. Medcalf, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-Senior
Minneapolis, MN 55440 Portfolio Manager
William C. Melton, Vice President-International Research and Chief International Economist
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 International Research
and Chief International
Economist
<PAGE>
PAGE 14
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Janis E. Miller, Vice President--Variable Assets
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Variable Assets
IDS Cable Corporation Director and President
IDS Cable II Corporation Director and President
IDS Futures Corporation Director and President
IDS Futures III Corporation Director and President
IDS Life Insurance Company Director and Executive
Vice President-Variable
Assets
IDS Life Series Fund, Inc. Director
IDS Life Variable Annuity Funds A&B Director
IDS Management Corporation Director and President
IDS Partnership Services Corporation Director and President
IDS Realty Corporation Director and President
IDS Life Insurance Company of New York Box 5144 Executive Vice President
Albany, NY 12205
James A. Mitchell, Director and Executive Vice President--Marketing and Products
American Enterprise Investment IDS Tower 10 Director
Services Inc. Minneapolis, MN 55440
American Express Financial Advisors Executive Vice President-
Marketing and Products
IDS Certificate Company Director and Chairman of
the Board
IDS Life Insurance Company Director, Chairman of
the Board and Chief
Executive Officer
IDS Plan Services of California, Inc. Director
IDS Property Casualty Insurance Co. Director
Pamela J. Moret, Vice President--Corporate Communications
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Corporate Communications
American Express Minnesota Foundation Director and President
Barry J. Murphy, Director and Senior Vice President--Client Service
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Client Service
IDS Life Insurance Company Director and Executive
Vice President-Client
Service
<PAGE>
PAGE 15
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Robert J. Neis, Vice President--Information Systems Operations
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Information Systems
Operations
James R. Palmer, Vice President--Insurance Operations
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Insurance Operations
IDS Life Insurance Company Vice President-Taxes
Carla P. Pavone, Vice President--Specialty Service Teams and Emerging Business
American Express Financial Advisors IDS Tower 10 Vice President-Specialty
Minneapolis, MN 55440 Service Teams and
Emerging Business
Judith A. Pennington, Vice President--Field Technology
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Field Technology
George M. Perry, Vice President--Corporate Strategy and Development
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Corporate Strategy
and Development
IDS Property Casualty Insurance Co. Director
Susan B. Plimpton, Vice President--Segmentation Development and Support
American Express Financial Advisors IDS Tower 10 Vice President--
Minneapolis, MN 55440 Segmentation Development
and Support
Ronald W. Powell, Vice President and Assistant General Counsel
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
IDS Cable Corporation Vice President and
Assistant Secretary
IDS Cable II Corporation Vice President and
Assistant Secretary
IDS Management Corporation Vice President and
Assistant Secretary
IDS Partnership Services Corporation Vice President and
Assistant Secretary
IDS Plan Services of California, Inc. Vice President and
Assistant Secretary
IDS Realty Corporation Vice President and
Assistant Secretary
<PAGE>
PAGE 16
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
James M. Punch, Vice President--TransAction Services
American Express Financial Advisors IDS Tower 10 Vice President-Trans
Minneapolis, MN 55440 Action Services
Frederick C. Quirsfeld, Vice President--Taxable Mutual Fund Investments
American Express Financial Advisors IDS Tower 10 Vice President--
Minneapolis, MN 55440 Taxable Mutual Fund
Investments
IDS Advisory Group Inc. Vice President
ReBecca K. Roloff, Vice President--1994 Program Director
American Express Financial Advisors IDS Tower 10 Vice President-1994
Minneapolis, MN 55440 Program Director
Stephen W. Roszell, Vice President--Advisory Institutional Marketing
American Express Financial Advisors IDS Tower 10 Vice President-Advisory
Minneapolis, MN 55440 Institutional Marketing
IDS Advisory Group Inc. President and Chief
Executive Officer
Robert A. Rudell, Vice President--American Express Institutional Services
American Express Financial Advisors IDS Tower 10 Vice President-American
Minneapolis, MN 55440 Express Institutional
Services
American Express Trust Company Director
IDS Sales Support Inc. Director and President
John P. Ryan, Vice President and General Auditor
American Express Financial Advisors IDS Tower 10 Vice President and General
Minneapolis, MN 55440 Auditor
<PAGE>
PAGE 17
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Erven A. Samsel, Director and Senior Vice President--Field Management
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Field Management
American Express Service Corporation Vice President
IDS Insurance Agency of Alabama Inc. Vice President-
New England Region
IDS Insurance Agency of Arkansas Inc. Vice President-
New England Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
New England Region
IDS Insurance Agency of Nevada Inc. Vice President-
New England Region
IDS Insurance Agency of New Mexico Inc. Vice President-
New England Region
IDS Insurance Agency of North Carolina Inc. Vice President-
New England Region
IDS Insurance Agency of Ohio Inc. Vice President-
New England Region
IDS Insurance Agency of Wyoming Inc. Vice President-
New England Region
Stuart A. Sedlacek, Vice President--Assured Assets
American Enterprise Life Insurance Co. IDS Tower 10 Director and Executive
Minneapolis, MN 55440 Vice President, Assured
Assets
American Express Financial Advisors Vice President-
Assured Assets
IDS Certificate Company Director and President
IDS Life Insurance Company Director and Executive
Vice President, Assured
Assets
Investors Syndicate Development Corp. Chairman of the Board
and President
Donald K. Shanks, Vice President--Property Casualty
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Property Casualty
IDS Property Casualty Insurance Co. Senior Vice President
<PAGE>
PAGE 18
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
F. Dale Simmons, Vice President--Senior Portfolio Manager, Insurance Investments
American Enterprise Life Insurance Co. IDS Tower 10 Vice President-Real
Minneapolis, MN 55440 Estate Loan Management
American Express Financial Advisors Vice President-Senior
Portfolio Manager
Insurance Investments
American Partners Life Insurance Co. Vice President-Real
Estate Loan Management
IDS Certificate Company Vice President-Real
Estate Loan Management
IDS Life Insurance Company Vice President-Real
Estate Loan Management
IDS Partnership Services Corporation Vice President
IDS Real Estate Services Inc. Director and Vice President
IDS Realty Corporation Vice President
IDS Life Insurance Company of New York Box 5144 Vice President and
Albany, NY 12205 Assistant Treasurer
Judy P. Skoglund, Vice President--Human Resources and Organization Development
American Express Financial Advisors IDS Tower 10 Vice President-Human
Minneapolis, MN 55440 Resources and
Organization Development
Ben C. Smith, Vice President--Workplace Marketing
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Workplace Marketing
William A. Smith, Vice President and Controller--Private Client Group
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Controller-Private
Client Group
Bridget Sperl, Vice President--Human Resources Management Services
American Express Financial Advisors IDS Tower 10 Vice President-Human
Minneapolis, MN 55440 Resources Management
Services
Jeffrey E. Stiefler, Director
American Express Company American Express Tower Director and President
World Financial Center
New York, NY 10285
<PAGE>
PAGE 19
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
William A. Stoltzmann, Vice President and Assistant General Counsel
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
American Partners Life Insurance Co. Director, Vice President,
General Counsel and
Secretary
IDS Life Insurance Company Vice President, General
Counsel and Secretary
IDS Life Series Fund, Inc. General Counsel and
Assistant Secretary
IDS Life Variable Annuity Funds A&B General Counsel and
Assistant Secretary
American Enterprise Life Insurance P.O. Box 534 Director, Vice President,
Company Minneapolis, MN 55440 General Counsel
and Secretary
James J. Strauss, Vice President--Corporate Planning and Analysis
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Corporate Planning and
Analysis
Jeffrey J. Stremcha, Vice President--Information Resource Management/ISD
American Express Financial Advisors IDS Tower 10 Vice President-Information
Minneapolis, MN 55440 Resource Management/ISD
Fenton R. Talbott, Director
ACUMA Ltd. ACUMA House President and Chief
The Glanty, Egham Executive Officer
Surrey TW 20 9 AT
UK
<PAGE>
PAGE 20
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
John R. Thomas, Director and Senior Vice President--Information and Technology
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Information and
Technology
IDS Bond Fund, Inc. Director
IDS California Tax-Exempt Trust Trustee
IDS Discovery Fund, Inc. Director
IDS Equity Select Fund, Inc. Director
IDS Extra Income Fund, Inc. Director
IDS Federal Income Fund, Inc. Director
IDS Global Series, Inc. Director
IDS Growth Fund, Inc. Director
IDS High Yield Tax-Exempt Fund, Inc. Director
IDS Investment Series, Inc. Director
IDS Managed Retirement Fund, Inc. Director
IDS Market Advantage Series, Inc. Director
IDS Money Market Series, Inc. Director
IDS New Dimensions Fund, Inc. Director
IDS Precious Metals Fund, Inc. Director
IDS Progressive Fund, Inc. Director
IDS Selective Fund, Inc. Director
IDS Special Tax-Exempt Series Trust Trustee
IDS Stock Fund, Inc. Director
IDS Strategy Fund, Inc. Director
IDS Tax-Exempt Bond Fund, Inc. Director
IDS Tax-Free Money Fund, Inc. Director
IDS Utilities Income Fund, Inc. Director
Melinda S. Urion, Vice President and Corporate Controller
American Enterprise Life IDS Tower 10 Vice President and
Insurance Company Minneapolis, MN 55440 Controller
American Express Financial Advisors Vice President and
Corporate Controller
American Partners Life Insurance Co. Director, Vice President,
Controller and Treasurer
IDS Life Insurance Company Director, Executive Vice
President and Controller
IDS Life Series Fund, Inc. Vice President and
Controller
Wesley W. Wadman, Vice President--Senior Portfolio Manager
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Senior Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS Fund Management Limited Director and Chairman
IDS International, Inc. Senior Vice President
<PAGE>
PAGE 21
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
Norman Weaver, Jr., Director and Senior Vice President--Field Management
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Field Management
American Express Service Corporation Vice President
IDS Insurance Agency of Alabama Inc. Vice President-
Pacific Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Pacific Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
Pacific Region
IDS Insurance Agency of Nevada Inc. Vice President-
Pacific Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Pacific Region
IDS Insurance Agency of North Carolina Inc. Vice President-
Pacific Region
IDS Insurance Agency of Ohio Inc. Vice President-
Pacific Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Pacific Region
Michael L. Weiner, Vice President--Corporate Tax Operations
American Express Financial Advisors IDS Tower 10 Vice President-Corporate
Minneapolis, MN 55440 Tax Operations
IDS Capital Holdings Inc. Vice President
IDS Futures Brokerage Group Vice President
IDS Futures Corporation Vice President, Treasurer
and Secretary
IDS Futures III Corporation Vice President, Treasurer
and Secretary
Lawrence J. Welte, Vice President--Investment Administration
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 Investment Administration
IDS Securities Corporation Director, Executive Vice
President and Chief
Operating Officer
Jeffry F. Welter, Vice President--Equity and Fixed Income Trading
American Express Financial Advisors IDS Tower 10 Vice President-Equity
Minneapolis, MN 55440 and Fixed Income Trading
<PAGE>
PAGE 22
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
William N. Westhoff, Director, Senior Vice President and Global Chief Investment Officer
American Enterprise Life Insurance IDS Tower 10 Director
Company Minneapolis, MN 55440
American Express Financial Advisors Senior Vice President and
Global Chief Investment
Officer
IDS International, Inc. Director
IDS Partnership Services Corporation Director and Vice President
IDS Real Estate Services Inc. Director, Chairman of the
Board and President
IDS Realty Corporation Director and Vice President
Investors Syndicate Development Corp. Director
Edwin M. Wistrand, Vice President and Assistant General Counsel
American Express Financial Advisors IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant General Counsel
Michael R. Woodward, Director and Senior Vice President--Field Management
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Field Management
American Express Service Corporation Vice President
IDS Insurance Agency of Alabama Inc. Vice President-
North Region
IDS Insurance Agency of Arkansas Inc. Vice President-
North Region
IDS Insurance Agency of Massachusetts Inc. Vice President-
North Region
IDS Insurance Agency of Nevada Inc. Vice President-
North Region
IDS Insurance Agency of New Mexico Inc. Vice President-
North Region
IDS Insurance Agency of North Carolina Inc. Vice President-
North Region
IDS Insurance Agency of Ohio Inc. Vice President-
North Region
IDS Insurance Agency of Wyoming Inc. Vice President-
North Region
IDS Life Insurance Company Box 5144 Director
of New York Albany, NY 12205
</TABLE>
<PAGE>
PAGE 23
Item 29. Principal Underwriters.
(a) American Express Financial Advisors acts as principal
underwriter for the following investment companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS
Discovery Fund, Inc.; IDS Equity Select Fund, Inc.; IDS Extra
Income Fund, Inc.; IDS Federal Income Fund, Inc.; IDS Global
Series, Inc.; IDS Growth Fund, Inc.; IDS High Yield Tax-Exempt
Fund, Inc.; IDS International Fund, Inc.; IDS Investment
Series, Inc.; IDS Managed Retirement Fund, Inc.; IDS Market
Advantage Series, Inc.; IDS Money Market Series, Inc.; IDS New
Dimensions Fund, Inc.; IDS Precious Metals Fund, Inc.; IDS
Progressive Fund, Inc.; IDS Selective Fund, Inc.; IDS Special
Tax-Exempt Series Trust; IDS Stock Fund, Inc.; IDS Strategy
Fund, Inc.; IDS Tax-Exempt Bond Fund, Inc.; IDS Tax-Free Money
Fund, Inc.; IDS Utilities Income Fund, Inc. and IDS
Certificate Company.
(b) As to each director, officer or partner of the principal
underwriter:
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald G. Abrahamson Vice President- None
IDS Tower 10 Service Quality and
Minneapolis, MN 55440 Reengineering
Douglas A. Alger Vice President-Total None
IDS Tower 10 Compensation
Minneapolis, MN 55440
Jerome R. Amundson Vice President and None
IDS Tower 10 Controller-Investment
Minneapolis, MN 55440 Accounting
Peter J. Anderson Senior Vice President- None
IDS Tower 10 Investments
Minneapolis, MN 55440
Ward D. Armstrong Vice President- None
IDS Tower 10 Sales and Marketing,
Minneapolis, MN 55440 American Express
Institutional Services
Alvan D. Arthur Group Vice President- None
IDS Tower 10 Central California/
Minneapolis, MN 55440 Western Nevada
Kent L. Ashton Vice President- None
IDS Tower 10 Financial Education
Minneapolis, MN 55440 Services
<PAGE>
PAGE 24
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Joseph M. Barsky III Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
Robert C. Basten Vice President-Tax None
IDS Tower 10 and Business Services
Minneapolis, MN 55440
Timothy V. Bechtold Vice President-Insurance None
IDS Tower 10 Product Development
Minneapolis, MN 55440
John D. Begley Group Vice Presdient- None
Olentangy Valley Center Ohio/Indiana
Suite 300
7870 Olentangy River Rd.
Columbus, OH 43235
Carl E. Beihl Vice President- None
IDS Tower 10 Strategic Technology
Minneapolis, MN 55440 Planning
Jack A. Benjamin Group Vice President- None
Greater Pennsylvania
Alan F. Bignall Vice President- None
IDS Tower 10 Financial Planning
Minneapolis, MN 55440 Systems
Brent L. Bisson Group Vice President- None
Seafirst Financial Los Angeles Metro
Center, Suite 1730
601 W. Riverside Ave.
Spokane, WA 99201
John C. Boeder Vice President- None
IDS Tower 10 Mature Market Group
Minneapolis, MN 55440
Bruce J. Bordelon Group Vice President- None
Gulf States
Charles R. Branch Group Vice President- None
Northwest
Karl J. Breyer Senior Vice President- None
IDS Tower 10 Corporate Affairs and
Minneapolis, MN 55440 Special Counsel
Harold E. Burke Vice President None
IDS Tower 10 and Assistant
Minneapolis, MN 55440 General Counsel<PAGE>
PAGE 25
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Daniel J. Candura Vice President- None
IDS Tower 10 Marketing Support
Minneapolis, MN 55440
Cynthia M. Carlson Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Securities Services
Orison Y. Chaffee III Vice President-Field None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James E. Choat Senior Vice President- None
Suite 124 Field Management
6210 Campbell Rd.
Dallas, TX 75248
Kenneth J. Ciak Vice President and None
IDS Property Casualty General Manager-
1400 Lombardi Avenue IDS Property Casualty
Green Bay, WI 54304
Roger C. Corea Group Vice President- None
345 Woodcliff Drive Upstate New York
Fairport, NY 14450
Henry J. Cormier Group Vice President- None
Connecticut
John M. Crawford Group Vice President- None
Arkansas/Springfield/Memphis
Kevin F. Crowe Group Vice President- None
IDS Tower 10 Carolinas/Eastern Georgia
Minneapolis, MN 55440
Alan R. Dakay Vice President- None
IDS Tower 10 Institutional Insurance
Minneapolis, MN 55440 Marketing
Regenia David Vice President- None
Systems Services
Scott M. Digiammarino Group Vice President- None
Washington/Baltimore
Bradford L. Drew Group Vice President- None
Eastern Florida
<PAGE>
PAGE 26
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
William H. Dudley Director and Executive Director/
IDS Tower 10 Vice President- Trustee
Minneapolis MN 55440 Investment Operations
Roger S. Edgar Senior Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440
Gordon L. Eid Senior Vice President None
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Robert M. Elconin Vice President- None
IDS Tower 10 Government Relations
Minneapolis, MN 55440
Mark A. Ernst Vice President- None
IDS Tower 10 Retail Services
Minneapolis, MN 55440
Joseph Evanovich Jr. Group Vice President- None
Nebraska/Iowa/Dakotas
Louise P. Evenson Group Vice President- None
San Francisco Bay Area
Gordon M. Fines Vice President- None
IDS Tower 10 Mutual Fund Equity
Minneapolis MN 55440 Investments
Louis C. Fornetti Senior Vice President None
IDS Tower 10 and Chief Financial
Minneapolis, MN 55440 Officer
Douglas L. Forsberg Group Vice President- None
IDS Tower 10 Portland/Eugene
Minneapolis, MN 55440
William P. Fritz Group Vice President- None
Northern Missouri
Carl W. Gans Group Vice President- None
IDS Tower 10 Twin City Metro
Minneapolis, MN 55440
Bruce M. Gaurino Group Vice President- None
Hawaii
<PAGE>
PAGE 27
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Robert G. Gilbert Vice President- None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden Vice President- None
IDS Tower 10 Field Compensation
Minneapolis, MN 55440 Development
Morris Goodwin Jr. Vice President and None
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Suzanne Graf Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Bruce M. Guarino Group Vice President- None
Hawaii
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Teresa A. Hanratty Group Vice President- None
Northern New England
John R. Hantz Group Vice President- None
Detroit Metro
Robert L. Harden Group Vice President- None
Suite 403 Boston Metro
8500 Leesburg Pike
Vienna, VA 22180
Lorraine R. Hart Vice President- None
IDS Tower 10 Insurance Investments
Minneapolis, MN 55440
Scott A. Hawkinson Vice President-Assured None
IDS Tower 10 Assets Product Development
Minneapolis, MN 55440 and Management
Brian M. Heath Group Vice President- None
IDS Tower 10 North Texas
Minneapolis, MN 55440
Raymond E. Hirsch Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
<PAGE>
PAGE 28
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
David J. Hockenberry Group Vice President- None
Eastern Tennessee
Kevin P. Howe Vice President- None
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations
David R. Hubers Chairman, Chief None
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
Marietta L. Johns Senior Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440
Douglas R. Jordal Vice President-Taxes None
IDS Tower 10
Minneapolis, MN 55440
Craig A. Junkins Vice President - IDS 1994 None
IDS Tower 10 Implementation Planning
Minneapolis, MN 55440 and Financial Planning
Development
James E. Kaarre Vice President- None
IDS Tower 10 Marketing Information
Minneapolis, MN 55440
Linda B. Keene Vice President- None
Market Development
G. Michael Kennedy Vice President-Investment None
IDS Tower 10 Services and Investment
Minneapolis, MN 55440 Research
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
Richard W. Kling Senior Vice President- None
IDS Tower 10 Risk Management Products
Minneapolis, MN 55440
<PAGE>
PAGE 29
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Harold D. Knutson Vice President- None
IDS Tower 10 System Services
Minneapolis, MN 55440
Paul F. Kolkman Vice President- None
IDS Tower 10 Actuarial Finance
Minneapolis, MN 55440
Claire Kolmodin Vice President- None
IDS Tower 10 Service Quality
Minneapolis, MN 55440
David S. Kreager Group Vice President- None
IDS Tower 10 Greater Michigan
Minneapolis, MN 55440
Steven C. Kumagai Director and Senior None
IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Management and Business
Systems
Mitre Kutanovski Group Vice President- None
IDS Tower 10 Chicago Metro
Minneapolis, MN 55440
Edward Labenski Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Kurt A. Larson Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Lori J. Larson Vice President- None
IDS Tower 10 Variable Assets Product
Minneapolis, MN 55440 Development
Ryan R. Larson Vice President- None
IDS Tower 10 IPG Product Development
Minneapolis, MN 55440
Daniel E. Laufenberg Vice President and None
IDS Tower 10 Chief U.S. Economist
Minneapolis, MN 55440
Richard J. Lazarchic Vice President- None
IDS Tower 10 Senior Portfolio
MInneapolis, MN 55440 Manager
Peter A. Lefferts Senior Vice President and None
IDS Tower 10 Chief Marketing Officer
Minneapolis, MN 55440<PAGE>
PAGE 30
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Douglas A. Lennick Director and Executive None
IDS Tower 10 Vice President-Private
Minneapolis, MN 55440 Client Group
Mary J. Malevich Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Fred A. Mandell Vice President- None
IDS Tower 10 Field Marketing Readiness
Minneapolis, MN 55440
Daniel E. Martin Group Vice President- None
Pittsburgh Metro
William J. McKinney Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Support
Thomas W. Medcalf Vice President- None
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
William C. Melton Vice President- None
IDS Tower 10 International Research
Minneapolis, MN 55440 and Chief International
Economist
Janis E. Miller Vice President- None
IDS Tower 10 Variable Assets
Minneapolis, MN 55440
James A. Mitchell Executive Vice President- None
IDS Tower 10 Marketing and Products
Minneapolis, MN 55440
John P. Moraites Group Vice President- None
Kansas/Oklahoma
Pamela J. Moret Vice President- None
IDS Tower 10 Corporate Communications
Minneapolis, MN 55440
Barry J. Murphy Senior Vice President- None
IDS Tower 10 Client Service
Minneapolis, MN 55440
Robert J. Neis Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440 Operations<PAGE>
PAGE 31
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald E. Newton Group Vice President- None
Rhode Island/Central
Massachusetts
Thomas V. Nicolosi Group Vice President- None
New York Metro Area
Vernon F. Palen Region Vice President- None
Suite D-222 Rocky Mountain Region
7100 E. Lincoln Drive
Scottsdale, AZ 85253
James R. Palmer Vice President- None
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
Carla P. Pavone Vice President- None
IDS Tower 10 Specialty Service Teams
Minneapolis, MN 55440 and Emerging Business
Judith A. Pennington Vice President- None
IDS Tower 10 Field Technology
Minneapolis, MN 55440
George M. Perry Vice President- None
IDS Tower 10 Corporate Strategy
Minneapolis, MN 55440 and Development
Susan B. Plimpton Vice President- None
IDS Tower 10 Segmentation Development
Minneapolis, MN 55440 and Support
Larry M. Post Group Vice President- None
Philadelphia Metro
Ronald W. Powell Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James M. Punch Vice President- None
IDS Tower 10 TransAction Services
Minneapolis, MN 55440
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
R. Daniel Richardson Group Vice President- None
Southern Texas
<PAGE>
PAGE 32
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Roger B. Rogos Group Vice President- None
Suite 15, Parkside Pl. Western Florida
945 Boardman-Canfield Rd
Youngstown, Ohio 44512
ReBecca K. Roloff Vice President-1994 None
IDS Tower 10 Program Director
Minneapolis, MN 55440
Stephen W. Roszell Vice President- None
IDS Tower 10 Advisory Institutional
Minneapolis, MN 55440 Marketing
Max G. Roth Group Vice President- None
Wisconsin/Upper Michigan
Robert A. Rudell Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Institutional Services
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
Erven A. Samsel Senior Vice President- None
45 Braintree Hill Park Field Management
Braintree, MA 02184
Russell L. Scalfano Group Vice President- None
Illinois/Indiana/Kentucky
William G. Scholz Group Vice President- None
Arizona/Las Vegas
Stuart A. Sedlacek Vice President- None
IDS Tower 10 Assured Assets
Minneapolis, MN 55440
Donald K. Shanks Vice President- None
IDS Tower 10 Property Casualty
Minneapolis, MN 55440
F. Dale Simmons Vice President-Senior None
IDS Tower 10 Portfolio Manager,
Minneapolis, MN 55440 Insurance Investments
Judy P. Skoglund Vice President- None
IDS Tower 10 Human Resources and
Minneapolis, MN 55440 Organization Development<PAGE>
PAGE 33
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Julian W. Sloter Group Vice Presidnet- None
9040 Roswell Rd. Orlando/Jacksonville
River Ridge-Suite 600
Atlanta, GA 30350
Ben C. Smith Vice President- None
IDS Tower 10 Workplace Marketing
Minneapolis, MN 55440
William A. Smith Vice President and None
IDS Tower 10 Controller-Private
Minneapolis, MN 55440 Client Group
James B. Solberg Group Vice President- None
IDS Tower 10 Eastern Iowa Area
Minneapolis, MN 55440
Bridget Sperl Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440 Management Services
Paul J. Stanislaw Group Vice President- None
Southern California
Lois A. Stilwell Group Vice President- None
IDS Tower 10 Outstate Minnesota Area/
Minneapolis, MN 55440 North Dakota/Western Wisconsin
William A. Stoltzmann Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James J. Strauss Vice President- None
IDS Tower 10 Corporate Planning
Minneapolis, MN 55440 and Analysis
Jeffrey J. Stremcha Vice President-Information None
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440
Neil G. Taylor Group Vice President- None
IDS Tower 10 Seattle/Tacoma
Minneapolis, MN 55440
John R. Thomas Senior Vice President- Director/
IDS Tower 10 Information and Trustee
Minneapolis, MN 55440 Technology
Melinda S. Urion Vice President and None
IDS Tower 10 Corporate Controller
Minneapolis, MN 55440<PAGE>
PAGE 34
Item 29(b). (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Peter S. Velardi Group Vice President- None
Atlanta/Birmingham
Charles F. Wachendorfer Group Vice President- None
Denver/Salt Lake City/
Albuquerque
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Norman Weaver Jr. Senior Vice President- None
Suite 215 Field Management
1501 Westcliff Drive
Newport Beach, CA 92660
Michael L. Weiner Vice President- None
IDS Tower 10 Corporate Tax
Minneapolis, MN 55440 Operations
Lawrence J. Welte Vice President- None
IDS Tower 10 Investment Administration
Minneapolis, MN 55440
Jeffry M. Welter Vice President- None
IDS Tower 10 Equity and Fixed Income
Minneapolis, MN 55440 Trading
William N. Westhoff Senior Vice President and None
IDS Tower 10 Global Chief Investment
Minneapolis, MN 55440 Officer
Thomas L. White Group Vice President- None
Cleveland Metro
Eric S. Williams Group Vice President- None
Virginia
Edwin M. Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Michael R. Woodward Senior Vice President- None
Suite 815 Field Management
8585 Broadway
Merrillville, IN 46410
<PAGE>
PAGE 35
Item 29(c). Not applicable.
Item 30. Location of Accounts and Records
IDS Financial Corporation
IDS Tower 10
Minneapolis, MN 55440
Item 31. Management Services
Not Applicable.
Item 32. Undertakings
(a) Not Applicable.
(b) Not Applicable.
(c) The Registrant undertakes to furnish each person
to whom a prospectus is delivered with a copy of
the Registrant's latest annual report to
shareholders, upon request and without charge.
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, IDS Money Market Series, Inc.
certifies that it meets the requirements for the effectiveness of this Amendment
to its Registration Statement pursuant to Rule 485(b) under the Securities Act
of 1933 and has duly caused this Amendment to its Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Minneapolis and State of Minnesota on the 27th day of February, 1995.
IDS MONEY MARKET SERIES, INC.
By /s/ WILLIAM R. PEARCE**
------------------------------------
William R. Pearce,
PRESIDENT
Pursuant to the requirements of the Securities Act of 1933, this Amendment
to its Registration Statement has been signed below by the following persons in
the capacities indicated on the 27th day of February, 1995.
<TABLE>
<CAPTION>
SIGNATURE CAPACITY
- ----------------------------------- -------------------------
<C> <S>
/s/ WILLIAM R. PEARCE** President and Principal
- ----------------------------------- Executive Officer and
William R. Pearce Director
Treasurer, Principal
/s/ LESLIE L. OGG** Financial Officer, and
- ----------------------------------- Principal Accounting
Leslie L. Ogg Officer
/s/ LYNNE V. CHENEY*
- ----------------------------------- Director
Lynne V. Cheney
/s/ WILLIAM H. DUDLEY*
- ----------------------------------- Director
William H. Dudley
/s/ ROBERT F. FROEHLKE*
- ----------------------------------- Director
Robert F. Froehlke
/s/ DAVID R. HUBERS*
- ----------------------------------- Director
David R. Hubers
/s/ HEINZ F. HUTTER*
- ----------------------------------- Director
Heinz F. Hutter
</TABLE>
II-3
<PAGE>
<TABLE>
<CAPTION>
SIGNATURE CAPACITY
- ----------------------------------- -------------------------
<C> <S>
/s/ ANNE P. JONES*
- ----------------------------------- Director
Anne P. Jones
/s/ DONALD M. KENDALL*
- ----------------------------------- Director
Donald M. Kendall
/s/ MELVIN R. LAIRD*
- ----------------------------------- Director
Melvin R. Laird
/s/ LEWIS W. LEHR*
- ----------------------------------- Director
Lewis W. Lehr
/s/ EDSON W. SPENCER*
- ----------------------------------- Director
Edson W. Spencer
/s/ JOHN R. THOMAS*
- ----------------------------------- Director
John R. Thomas
/s/ WHEELOCK WHITNEY*
- ----------------------------------- Director
Wheelock Whitney
/s/ C. ANGUS WURTELE*
- ----------------------------------- Director
C. Angus Wurtele
*Signed pursuant to Directors' Power of Attorney, dated Nov.
10, 1994, filed as Exhibit 18(a) to Registrant's
Post-Effective Amendment No. 41, by:
/s/ LESLIE L. OGG
- -----------------------------------
Leslie L. Ogg
**Signed pursuant to Officers' Power of Attorney, dated June
1, 1993, filed electronically as Exhibit 17(b) to
Registrant's Post-Effective Amendment No. 39 by:
/s/ LESLIE L. OGG
- -----------------------------------
Leslie L. Ogg
</TABLE>
II-4
<PAGE>
CONTENTS OF THIS
POST-EFFECTIVE AMENDMENT NO. 42
TO REGISTRATION STATEMENT NO. 2-54516
This Post-Effective Amendment contains the following papers and documents:
The facing sheet.
Cross reference sheet.
Part A.
IDS Cash Management Fund prospectus.
Part B.
Statement of Additional Information for IDS Money Market Series, Inc.,
IDS Cash Management Fund.
Financial Statements.
Part C.
Other information.
Exhibits.
The signatures.
<PAGE>
IDS Money Market Series, Inc.
Registration Number 2-54516/811-2591
EXHIBIT INDEX
<TABLE>
<S> <C> <C>
Exhibit 5: Form of Investment Management Services Agreement between
Registrant and American Express Financial Corporation,
dated March 20, 1995.
Exhibit 6: Form of Distribution Agreement between Registrant and
American Express Financial Advisors Inc., dated March 20,
1995.
Exhibit 8: Form of Custodian Agreement between Registrant and American
Express Trust Company, dated March 20, 1995.
Exhibit 9b: Form of Transfer Agency Agreement between Registrant and
American Express Financial Corporation, dated March 20,
1995.
Exhibit 9d: Form of Shareholder Service Agreement between Registrant and
American Express Financial Advisors Inc., dated March 20,
1995.
Exhibit 9e: Form of Administrative Services Agreement between Registrant
and American Express Financial Corporation, dated March 20,
1995.
Exhibit 11: Independent Auditors' Consent.
Exhibit 15: Form of Plan and Agreement of Distribution between
Registrant and American Express Financial Advisors Inc.,
dated March 20, 1995.
Exhibit 17: Financial Data Schedule.
</TABLE>
<PAGE>
FORM OF
INVESTMENT MANAGEMENT SERVICES AGREEMENT
AGREEMENT made the 20th day of March, 1995, by and between IDS Money Market
Series, Inc. (the "Fund"), a Minnesota corporation, and American Express
Financial Corporation, a Delaware corporation.
PART ONE: INVESTMENT MANAGEMENT AND OTHER SERVICES
(1) The Fund hereby retains American Express Financial Corporation, and
American Express Financial Corporation hereby agrees, for the period of this
Agreement and under the terms and conditions hereinafter set forth, to furnish
the Fund continuously with suggested investment planning; to determine,
consistent with the Fund's investment objectives and policies, which securities
in American Express Financial Corporation's discretion shall be purchased, held
or sold and to execute or cause the execution of purchase or sell orders; to
prepare and make available to the Fund all necessary research and statistical
data in connection therewith; to furnish services of whatever nature required in
connection with the management of the Fund as provided under this Agreement; and
to pay such expenses as may be provided for in Part Three; subject always to the
direction and control of the Board of Directors (the "Board"), the Executive
Committee and the authorized officers of the Fund. American Express Financial
Corporation agrees to maintain an adequate organization of competent persons to
provide the services and to perform the functions herein mentioned. American
Express Financial Corporation agrees to meet with any persons at such times as
the Board deems appropriate for the purpose of reviewing American Express
Financial Corporation's performance under this Agreement.
(2) American Express Financial Corporation agrees that the investment
planning and investment decisions will be in accordance with general investment
policies of the Fund as disclosed to American Express Financial Corporation from
time to time by the Fund and as set forth in its prospectuses and registration
statements filed with the United States Securities and Exchange Commission (the
"SEC").
(3) American Express Financial Corporation agrees that it will maintain
all required records, memoranda, instructions or authorizations relating to the
acquisition or disposition of securities for the Fund.
(4) The Fund agrees that it will furnish to American Express Financial
Corporation any information that the latter may reasonably request with respect
to the services performed or to be performed by American Express Financial
Corporation under this Agreement.
(5) American Express Financial Corporation is authorized to select the
brokers or dealers that will execute the purchases and sales of portfolio
securities for the Fund and is directed to use its best efforts to obtain the
best available price and most favorable execution, except as prescribed herein.
Subject to prior authorization by the Fund's Board of appropriate policies and
procedures, and subject to termination at any time by the Board, American
Express Financial Corporation may also be authorized to effect individual
securities transactions at commission rates in excess of the minimum commission
rates available, to the extent authorized by law, if American Express
Financial Corporation determines in good faith that such amount of commission
was reasonable in relation to the value of the brokerage and research services
provided by such broker or dealer, viewed in terms of either that particular
transaction or American Express Financial Corporation's overall
responsibilities with respect to the Fund and other funds for which it acts
as investment adviser.
(6) It is understood and agreed that in furnishing the Fund with the
services as herein provided, neither American Express Financial Corporation, nor
any officer, director or agent thereof shall be held liable to the Fund or its
creditors or shareholders for errors of judgment or for anything except willful
misfeasance, bad faith, or gross negligence in the performance of its duties, or
reckless disregard of its obligations and duties under the terms of this
Agreement. It is further understood and agreed that American Express Financial
Corporation may rely upon information furnished to it reasonably believed to be
accurate and reliable.
PART TWO: COMPENSATION TO INVESTMENT MANAGER
(1) The Fund agrees to pay to American Express Financial Corporation, and
American Express Financial Corporation covenants and agrees to accept from the
Fund in full payment for the services furnished, a fee for each calendar day of
each year equal to the total of 1/365th (1/366th in each leap
<PAGE>
year) of each of the respective percentages set forth below of the net assets
of the Fund; to be computed for each day on the basis of net assets as of the
close of business of the full business day two (2) business days prior to the
day for which the computation is being made. In the case of the suspension of
the computation of net asset value, the asset charge for each day during such
suspension shall be computed as of the close of business on the last full
business day on which the net assets were computed. Net assets as of the close
of a full business day shall include all transactions in shares of the Fund
recorded on the books of the Fund for that day.
<TABLE>
<CAPTION>
Assets Annual Rate at
($Billions) Each Asset Level
------------ -----------------
<S> <C>
First $1.0 0.310 %
Next $0.5 0.293
Next $0.5 0.275
Next $0.5 0.258
Over $2.5 0.240
</TABLE>
(2) The fee shall be paid on a monthly basis and, in the event of the
termination of this Agreement, the fee accrued shall be prorated on the basis of
the number of days that this Agreement is in effect during the month with
respect to which such payment is made.
(3) The fee provided for hereunder shall be paid in cash by the Fund to
American Express Financial Corporation within five business days after the last
day of each month.
PART THREE: ALLOCATION OF EXPENSES
(1) The Fund agrees to pay:
(a) Fees payable to American Express Financial Corporation for its
services under the terms of this Agreement.
(b) Taxes.
(c) Brokerage commissions and charges in connection with the purchase and
sale of assets.
(d) Custodian fees and charges.
(e) Fees and charges of its independent certified public accountants for
services the Fund requests.
(f) Premium on the bond required by Rule 17g-1 under the Investment
Company Act of 1940.
(g) Fees and expenses of attorneys (i) it employs in matters not involving
the assertion of a claim by a third party against the Fund, its directors and
officers, (ii) it employs in conjunction with a claim asserted by the Board
against American Express Financial Corporation, except that American Express
Financial Corporation shall reimburse the Fund for such fees and expenses if it
is ultimately determined by a court of competent jurisdiction, or American
Express Financial Corporation agrees, that it is liable in whole or in part to
the Fund, and (iii) it employs to assert a claim against a third party.
(h) Fees paid for the qualification and registration for public sale of
the securities of the Fund under the laws of the United States and of the
several states in which such securities shall be offered for sale.
(i) Fees of consultants employed by the Fund.
(j) Directors, officers and employees expenses which shall include fees,
salaries, memberships, dues, travel, seminars, pension, profit sharing, and all
other benefits paid to or provided for directors, officers and employees,
directors and officers liability insurance, errors and omissions liability
insurance, worker's compensation insurance and
<PAGE>
other expenses applicable to the directors, officers and employees, except the
Fund will not pay any fees or expenses of any person who is an officer or
employee of American Express Financial Corporation or its affiliates.
(k) Filing fees and charges incurred by the Fund in connection with filing
any amendment to its articles of incorporation, or incurred in filing any other
document with the State of Minnesota or its political subdivisions.
(l) Organizational expenses of the Fund.
(m) Expenses incurred in connection with lending portfolio securities of
the Fund.
(n) Expenses properly payable by the Fund, approved by the Board.
(2) American Express Financial Corporation agrees to pay all expenses
associated with the services it provides under the terms of this Agreement.
Further, American Express Financial Corporation agrees that if, at the end of
any month, the expenses of the Fund under this Agreement and any other agreement
between the Fund and American Express Financial Corporation, but excluding those
expenses set forth in (1)(b) and (1)(c) of this Part Three, exceed the most
restrictive applicable state expenses limitation, the Fund shall not pay those
expenses set forth in (1)(a) and (d) through (n) of this Part Three to the
extent necessary to keep the Fund's expenses from exceeding the limitation, it
being understood that American Express Financial Corporation will assume all
unpaid expenses and bill the Fund for them in subsequent months but in no event
can the accumulation of unpaid expenses or billing be carried past the end of
the Fund's fiscal year.
PART FOUR: MISCELLANEOUS
(1) American Express Financial Corporation shall be deemed to be an
independent contractor and, except as expressly provided or authorized in this
Agreement, shall have no authority to act for or represent the Fund.
(2) A "full business day" shall be as defined in the By-laws.
(3) The Fund recognizes that American Express Financial Corporation now
renders and may continue to render investment advice and other services to other
investment companies and persons which may or may not have investment policies
and investments similar to those of the Fund and that American Express Financial
Corporation manages its own investments and/ or those of its subsidiaries.
American Express Financial Corporation shall be free to render such investment
advice and other services and the Fund hereby consents thereto.
(4) Neither this Agreement nor any transaction had pursuant hereto shall
be invalidated or in any way affected by the fact that directors, officers,
agents and/or shareholders of the Fund are or may be interested in American
Express Financial Corporation or any successor or assignee thereof, as
directors, officers, stockholders or otherwise; that directors, officers,
stockholders or agents of American Express Financial Corporation are or may be
interested in the Fund as directors, officers, shareholders, or otherwise; or
that American Express Financial Corporation or any successor or assignee, is or
may be interested in the Fund as shareholder or otherwise, provided, however,
that neither American Express Financial Corporation, nor any officer, director
or employee thereof or of the Fund, shall sell to or buy from the Fund any
property or security other than shares issued by the Fund, except in accordance
with applicable regulations or orders of the SEC.
(5) Any notice under this Agreement shall be given in writing, addressed,
and delivered, or mailed postpaid, to the party to this Agreement entitled to
receive such, at such party's principal place of business in Minneapolis,
Minnesota, or to such other address as either party may designate in writing
mailed to the other.
(6) American Express Financial Corporation agrees that no officer,
director or employee of American Express Financial Corporation will deal for or
on behalf of the Fund with himself as principal or agent, or with any
corporation or partnership in which he may have a financial interest, except
that this shall not prohibit:
(a) Officers, directors or employees of American Express Financial
Corporation from having a financial interest in the Fund or in American Express
Financial Corporation.
(b) The purchase of securities for the Fund, or the sale of securities
owned by the Fund, through a security broker or dealer, one or more of whose
partners, officers, directors or employees is an officer, director or employee
of
<PAGE>
American Express Financial Corporation, provided such transactions are handled
in the capacity of broker only and provided commissions charged do not
exceed customary brokerage charges for such services.
(c) Transactions with the Fund by a broker-dealer affiliate of American
Express Financial Corporation as may be allowed by rule or order of the SEC, and
if made pursuant to procedures adopted by the Fund's Board.
(7) American Express Financial Corporation agrees that, except as herein
otherwise expressly provided or as may be permitted consistent with the use of a
broker-dealer affiliate of American Express Financial Corporation under
applicable provisions of the federal securities laws, neither it nor any of its
officers, directors or employees shall at any time during the period of this
Agreement, make, accept or receive, directly or indirectly, any fees, profits or
emoluments of any character in connection with the purchase or sale of
securities (except shares issued by the Fund) or other assets by or for the
Fund.
PART FIVE: RENEWAL AND TERMINATION
(1) This Agreement shall continue in effect until March 19, 1997, or until
a new agreement is approved by a vote of the majority of the outstanding shares
of the Fund and by vote of the Fund's Board, including the vote required by (b)
of this paragraph, and if no new agreement is so approved, this Agreement shall
continue from year to year thereafter unless and until terminated by either
party as hereinafter provided, except that such continuance shall be
specifically approved at least annually (a) by the Board of the Fund or by a
vote of the majority of the outstanding shares of the Fund and (b) by the vote
of a majority of the directors who are not parties to this Agreement or
interested persons of any such party, cast in person at a meeting called for the
purpose of voting on such approval. As used in this paragraph, the term
"interested person" shall have the same meaning as set forth in the Investment
Company Act of 1940, as amended (the "1940 Act").
(2) This Agreement may be terminated by either the Fund or American
Express Financial Corporation at any time by giving the other party 60 days'
written notice of such intention to terminate, provided that any termination
shall be made without the payment of any penalty, and provided further that
termination may be effected either by the Board of the Fund or by a vote of the
majority of the outstanding voting shares of the Fund. The vote of the majority
of the outstanding voting shares of the Fund for the purpose of this Part Five
shall be the vote at a shareholders' regular meeting, or a special meeting duly
called for the purpose, of 67% or more of the Fund's shares present at such
meeting if the holders of more than 50% of the outstanding voting shares are
present or represented by proxy, or more than 50% of the outstanding voting
shares of the Fund, whichever is less.
(3) This Agreement shall terminate in the event of its assignment, the
term "assignment" for this purpose having the same meaning as set forth in the
1940 Act.
IN WITNESS THEREOF, the parties hereto have executed the foregoing
Agreement as of the day and year first above written.
AMERICAN EXPRESS FINANCIAL CORPORATION
MONEY MARKET SERIES, INC.
American Express Financial Corporation
Cash Management Fund
By: -------------------------------
Leslie L. Ogg,
Vice President
AMERICAN EXPRESS FINANCIAL CORPORATION
By: -------------------------------
<PAGE>
DISTRIBUTION AGREEMENT
Agreement made as of the 20th day of March, 1995, by and between
IDS Money Market Series, Inc. (the "Corporation"), a Minnesota
corporation, for and on behalf of each class of its underlying
Fund, and American Express Financial Advisors Inc., a Delaware
corporation.
Part One: DISTRIBUTION OF SECURITIES
(1) The Corporation covenants and agrees that, during the term of
this agreement and any renewal or extension, American Express
Financial Advisors shall have the exclusive right to act as
principal underwriter for the Corporation and to offer for sale and
to distribute either directly or through any affiliate any and all
shares of each class of capital stock issued or to be issued by the
Corporation.
(2) American Express Financial Advisors hereby covenants and
agrees to act as the principal underwriter of each class of capital
shares issued and to be issued by the Corporation during the period
of this agreement and agrees during such period to offer for sale
such shares as long as such shares remain available for sale,
unless American Express Financial Advisors is unable or unwilling
to make such offer for sale or sales or solicitations therefor
legally because of any federal, state, provincial or governmental
law, rule or agency or for any financial reason.
(3) With respect to the offering for sale and sale of shares of
each class to be issued by the Corporation, it is mutually
understood and agreed that such shares are to be sold on the
following terms:
(a) All sales shall be made by means of an application, and
every application shall be subject to acceptance or rejection by
the Corporation at its principal place of business. Shares are to
be sold for cash, payable at the time the application and payment
for such shares are received at the principal place of business of
the Corporation.
(b) No shares shall be sold at less than the asset value
(computed in the manner provided by the currently effective
prospectus or Statement of Additional Information and the
Investment Company Act of 1940, and rules thereunder). The number
of shares or fractional shares to be acquired by each applicant
shall be determined by dividing the amount of each accepted
application by the public offering price of one share of the
capital stock of the appropriate class as of the close of business
on the day when the application, together with payment, is received
by the Corporation at its principal place of business. The
computation as to the number of shares and fractional shares shall
be carried to three decimal points of one share with the
computation being carried to the nearest 1/l000th of a share. If
the day of receipt of the application and payment is not a full
business day, then the asset value of the share for use in such
computation shall be determined as of the close of business on the
next succeeding full business day. In the event of a period of
emergency, the computation of the asset value for the purpose of
<PAGE>
determining the number of shares or fractional shares to be
acquired by the applicant may be deferred until the close of
business on the first full business day following the termination
of the period of emergency. A period of emergency shall have the
definition given thereto in the Investment Company Act of 1940, and
rules thereunder.
(4) The Corporation agrees to make prompt and reasonable effort
to do any and all things necessary, in the opinion of American
Express Financial Advisors, to have and to keep the Corporation and
the shares properly registered or qualified in all appropriate
jurisdictions and, as to shares, in such amounts as American
Express Financial Advisors may from time to time designate in order
that the Corporation's shares may be offered or sold in such
jurisdictions.
(5) The Corporation agrees that it will furnish American Express
Financial Advisors with information with respect to the affairs and
accounts of the Corporation, and in such form, as American Express
Financial Advisors may from time to time reasonably require and
further agrees that American Express Financial Advisors, at all
reasonable times, shall be permitted to inspect the books and
records of the Corporation.
(6) American Express Financial Advisors or its agents may prepare
or cause to be prepared from time to time circulars, sales
literature, broadcast material, publicity data and other
advertising material to be used in the sales of shares issued by
the Corporation, including material which may be deemed to be a
prospectus under rules promulgated by the Securities and Exchange
Commission (each separate promotional piece is referred to as an
"Item of Soliciting Material"). At its option, American Express
Financial Advisors may submit any Item of Soliciting Material to
the Corporation for its prior approval. Unless a particular Item
of Soliciting Material is approved in writing by the Corporation
prior to its use, American Express Financial Advisors agrees to
indemnify the Corporation and its directors and officers against
any and all claims, demands, liabilities and expenses which the
Corporation or such persons may incur arising out of or based upon
the use of any Item of Soliciting Material. The term "expenses"
includes amounts paid in satisfaction of judgments or in
settlements. The foregoing right of indemnification shall be in
addition to any other rights to which the Corporation or any
director or officer may be entitled as a matter of law.
Notwithstanding the foregoing, such indemnification shall not be
deemed to abrogate or diminish in any way any right or claim
American Express Financial Advisors may have against the
Corporation or its officers or directors in connection with the
Corporation's registration statement, prospectus, Statement of
Additional Information or other information furnished by or caused
to be furnished by the Corporation.
(7) American Express Financial Advisors agrees to submit to the
Corporation each application for shares immediately after the
receipt of such application and payment therefor by American
Express Financial Advisors at its principal place or business.
<PAGE>
(8) American Express Financial Advisors agrees to cause to be
delivered to each person submitting an application a prospectus or
circular to be furnished by the Corporation in the form required by
the applicable federal laws or by the acts or statutes of any
applicable state, province or country.
(9) The Corporation shall have the right to extend to
shareholders of each class the right to use the proceeds of any
cash dividend paid by the Corporation to that shareholder to
purchase shares of the same class at the net asset value at the
close of business upon the day of purchase, to the extent set forth
in the currently effective prospectus or Statement of Additional
Information.
(10) Shares of each class issued by the Corporation may be offered
and sold at their asset value to the shareholders of the same class
of other funds in the IDS MUTUAL FUND GROUP who wish to exchange
their investments in shares of the other funds in the IDS MUTUAL
FUND GROUP to investments in shares of the Corporation, to the
extent set forth in the currently effective prospectus or Statement
of Additional Information, such asset value to be computed as of
the close of business on the day of sale of such shares of the
Corporation.
(11) American Express Financial Advisors and the Corporation agree
to use their best efforts to conform with all applicable state and
federal laws and regulations relating to any rights or obligations
under the term of this agreement.
Part Two: ALLOCATION OF EXPENSES
Except as provided by any other agreements between the parties,
American Express Financial Advisors covenants and agrees that
during the period of this agreement it will pay or cause or be paid
all expenses incurred by American Express Financial Advisors, or
any of its affiliates, in the offering for sale or sale of each
class of the Corporation's shares.
Part Three: COMPENSATION
(1) It is covenanted and agreed that American Express Financial
Advisors shall be paid:
(i) for a class of shares imposing a front-end sales charge,
by the purchasers of Corporation shares in an amount equal to the
difference between the total amount received upon each sale of
shares issued by the Corporation and the asset value of such shares
at the time of such sale; and
(ii) for a class of shares imposing a deferred sales charge,
by owners of Corporation shares at the time the sales charge is
imposed in an amount equal to any deferred sales charge, as
described in the Corporation's prospectus.
Such sums as are received by the Corporation shall be received as
Agent for American Express Financial Advisors and shall be remitted
to American Express Financial Advisors daily as soon as practicable
after receipt.
<PAGE>
(2) The asset value of any share of each class of the Corporation
shall be determined in the manner provided by the classes currently
effective prospectus and Statement of Additional Information and
the Investment Company Act of 1940, and rules thereunder.
Part Four: MISCELLANEOUS
(1) American Express Financial Advisors shall be deemed to be an
independent contractor and, except as expressly provided or
authorized in this agreement, shall have no authority to act for or
represent the Corporation.
(2) American Express Financial Advisors shall be free to render
to others services similar to those rendered under this agreement.
(3) Neither this agreement nor any transaction had pursuant
hereto shall be invalidated or in any way affected by the fact that
directors, officers, agents and/or shareholders of the Corporation
are or may be interested in American Express Financial Advisors as
directors, officers, shareholders or otherwise; that directors,
officers, shareholders or agents of American Express Financial
Advisors are or may be interested in the Corporation as directors,
officers, shareholders or otherwise; or that American Express
Financial Advisors is or may be interested in the Corporation as
shareholder or otherwise, provided, however, that neither American
Express Financial Advisors nor any officer or director of American
Express Financial Advisors or any officers or directors of the
Corporation shall sell to or buy from the Corporation any property
or security other than a security issued by the Corporation, except
in accordance with a rule, regulation or order of the federal
Securities and Exchange Commission.
(4) For the purposes of this agreement, a "business day" shall
have the same meaning as is given to the term in the By-laws of the
Corporation.
(5) Any notice under this agreement shall be given in writing,
addressed and delivered, or mailed postpaid, to the parties to this
agreement at each company's principal place of business in
Minneapolis, Minnesota, or to such other address as either party
may designate in writing mailed to the other.
(6) American Express Financial Advisors agrees that no officer,
director or employee of American Express Financial Advisors will
deal for or on behalf of the Corporation with himself as principal
or agent, or with any corporation or partnership in which he may
have a financial interest, except that this shall not prohibit:
(a) Officers, directors and employees of American Express
Financial Advisors from having a financial interest in the
Corporation or in American Express Financial Advisors.
(b) The purchase of securities for the Corporation, or the
sale of securities owned by the Corporation, through a security
broker or dealer, one or more of whose partners, officers,
directors or employees is an officer, director or employee of
American Express Financial Advisors, provided such transactions are
handled in the capacity of broker only and provided commissions
<PAGE>
charged do not exceed customary brokerage charges for such
services.
(c) Transactions with the Corporation by a broker-dealer
affiliate of American Express Financial Advisors if allowed by rule
or order of the Securities and Exchange Commission and if made
pursuant to procedures adopted by the Corporation's Board of
Directors.
(7) American Express Financial Advisors agrees that, except as
otherwise provided in this agreement, or as may be permitted
consistent with the use of a broker-dealer affiliate of American
Express Financial Advisors under applicable provisions of the
federal securities laws, neither it nor any of its officers,
directors or employees shall at any time during the period of this
agreement make, accept or receive, directly or indirectly, any
fees, profits or emoluments of any character in connection with the
purchase or sale of securities (except securities issued by the
Corporation) or other assets by or for the Corporation.
Part Five: TERMINATION
(1) This agreement shall continue from year to year unless and
until terminated by American Express Financial Advisors or the
Corporation, except that such continuance shall be specifically
approved at least annually by a vote of a majority of the Board of
Directors who are not parties to this agreement or interested
persons of any such party, cast in person at a meeting called for
the purpose of voting on such approval, and by a majority of the
Board of Directors or by vote of a majority of the outstanding
voting securities of the Corporation. As used in this paragraph,
the term "interested person" shall have the meaning as set forth in
the Investment Company Act of 1940, as amended.
(2) This agreement may be terminated by American Express
Financial Advisors or the Corporation at any time by giving the
other party sixty (60) days written notice of such intention to
terminate.
(3) This agreement shall terminate in the event of its
assignment, the term "assignment" for this purpose having the same
meaning as set forth in the Investment Company Act of 1940, as
amended.
<PAGE>
IN WITNESS WHEREOF, The parties hereto have executed the foregoing
agreement on the date and year first above written.
IDS MONEY MARKET SERIES
IDS Cash Management Fund
By _____________________________________
Leslie L. Ogg
Vice President
AMERICAN EXPRESS FINANCIAL ADVISORS INC.
By _____________________________________
Vice President
<PAGE>
CUSTODIAN AGREEMENT
THIS CUSTODIAN AGREEMENT dated March 20, 1995, between IDS Money
Market Series, Inc., a Minnesota Corporation (the "Corporation"),
on behalf of its underlying series fund, and American Express Trust
Company, a corporation organized under the laws of the State of
Minnesota with its principal place of business at Minneapolis,
Minnesota (the "Custodian").
WHEREAS, the Corporation desires that its securities and cash be
hereafter held and administered by Custodian pursuant to the terms
of this Agreement.
NOW, THEREFORE, in consideration of the mutual agreements herein
made, the Corporation and the Custodian agree as follows:
SECTION 1. DEFINITIONS
The word "securities" as used herein shall be construed to include,
without being limited to, shares, stocks, treasury stocks,
including any stocks of this Corporation, notes, bonds, debentures,
evidences of indebtedness, options to buy or sell stocks or stock
indexes, certificates of interest or participation in any profit-
sharing agreements, collateral trust certificates, preorganization
certificates or subscriptions, transferable shares, investment
contracts, voting trust certificates, certificates of deposit for a
security, fractional or undivided interests in oil, gas or other
mineral rights, or any certificates of interest or participation
in, temporary or interim certificates for, receipts for, guarantees
of, or warrants or rights to subscribe to or purchase any of the
foregoing, acceptances and other obligations and any evidence of
any right or interest in or to any cash, property or assets and any
interest or instrument commonly known as a security. In addition,
for the purpose of this Custodian Agreement, the word "securities"
also shall include other instruments in which the Corporation may
invest including currency forward contracts and commodities such as
interest rate or index futures contracts, margin deposits on such
contracts or options on such contracts.
The words "custodian order" shall mean a request or direction,
including a computer printout, directed to the Custodian and signed
in the name of the Corporation by any two individuals designated in
the current certified list referred to in Section 2.
The word "facsimile" shall mean an exact copy or likeness which is
electronically transmitted for instant reproduction.
SECTION 2. NAMES, TITLES AND SIGNATURES OF AUTHORIZED PERSONS
The Corporation will certify to the Custodian the names and
signatures of its present officers and other designated persons
authorized on behalf of the Corporation to direct the Custodian by
custodian order as herein before defined. The Corporation agrees
that whenever any change occurs in this list it will file with the
Custodian a copy of a resolution certified by the Secretary or an
<PAGE>
Assistant Secretary of the Corporation as having been duly adopted
by the Board of Directors or the Executive Committee of the Board
of Directors of the Corporation designating those persons currently
authorized on behalf of the Corporation to direct the Custodian by
custodian order, as herein before defined, and upon such filing (to
be accompanied by the filing of specimen signatures of the
designated persons) the persons so designated in said resolution
shall constitute the current certified list. The Custodian is
authorized to rely and act upon the names and signatures of the
individuals as they appear in the most recent certified list from
the Corporation which has been delivered to the Custodian as herein
above provided.
SECTION 3. USE OF SUBCUSTODIANS
The Custodian may make arrangements, where appropriate, with other
banks having not less than two million dollars aggregate capital,
surplus and undivided profits for the custody of securities. Any
such bank selected by the Custodian to act as subcustodian shall be
deemed to be the agent of the Custodian.
The Custodian also may enter into arrangements for the custody of
securities entrusted to its care through foreign branches of United
States banks; through foreign banks, banking institutions or trust
companies; through foreign subsidiaries of United States banks or
bank holding companies, or through foreign securities depositories
or clearing agencies (hereinafter also called, collectively, the
"Foreign Subcustodian" or indirectly through an agent, established
under the first paragraph of this section, if and to the extent
permitted by Section 17(f) of the Investment Company Act of 1940
and the rules promulgated by the Securities and Exchange Commission
thereunder, any order issued by the Securities and Exchange
Commission, or any "no-action" letter received from the staff of
the Securities and Exchange Commission. To the extent the existing
provisions of the Custodian Agreement are consistent with the
requirements of such Section, rules, order or no-action letter,
they shall apply to all such foreign custodianships. To the extent
such provisions are inconsistent with or additional requirements
are established by such Section, rules, order or no-action letter,
the requirements of such Section, rules, order or no-action letter
will prevail and the parties will adhere to such requirements;
provided, however, in the absence of notification from the
Corporation of any changes or additions to such requirements, the
Custodian shall have no duty or responsibility to inquire as to any
such changes or additions.
SECTION 4. RECEIPT AND DISBURSEMENT OF MONEY
(1) The Custodian shall open and maintain a separate account or
accounts in the name of the Corporation or cause its agent to open
and maintain such account or accounts subject only to checks,
drafts or directives by the Custodian pursuant to the terms of this
Agreement. The Custodian or its agent shall hold in such account
or accounts, subject to the provisions hereof, all cash received by
<PAGE>
it from or for the account of the Corporation. The Custodian or
its agent shall make payments of cash to or for the account of the
Corporation from such cash only:
(a) for the purchase of securities for the portfolio of the
Corporation upon the receipt of such securities by the
Custodian or its agent unless otherwise instructed on
behalf of the Corporation;
(b) for the purchase or redemption of shares of capital
stock of the Corporation;
(c) for the payment of interest, dividends, taxes,
management fees, or operating expenses (including,
without limitation thereto, fees for legal, accounting
and auditing services);
(d) for payment of distribution fees, commissions, or
redemption fees, if any;
(e) for payments in connection with the conversion,
exchange or surrender of securities owned or subscribed
to by the Corporation held by or to be delivered to the
Custodian;
(f) for payments in connection with the return of
securities loaned by the Corporation upon receipt of
such securities or the reduction of collateral upon
receipt of proper notice;
(g) for payments for other proper corporate purposes;
(h) or upon the termination of this Agreement.
Before making any such payment for the purposes permitted under the
terms of items (a), (b), (c), (d), (e), (f) or (g) of paragraph (1)
of this section, the Custodian shall receive and may rely upon a
custodian order directing such payment and stating that the payment
is for such a purpose permitted under these items (a), (b), (c),
(d), (e), (f) or (g) and that in respect to item (g), a copy of a
resolution of the Board of Directors or of the Executive Committee
of the Board of Directors of the Corporation signed by an officer
of the Corporation and certified by its Secretary or an Assistant
Secretary, specifying the amount of such payment, setting forth the
purpose to be a proper corporate purpose, and naming the person or
persons to whom such payment is made. Notwithstanding the above,
for the purposes permitted under items (a) or (f) of paragraph (1)
of this section, the Custodian may rely upon a facsimile order.
(2) The Custodian is hereby appointed the attorney-in-fact of the
Corporation to endorse and collect all checks, drafts or other
orders for the payment of money received by the Custodian for the
account of the Corporation and drawn on or to the order of the
Corporation and to deposit same to the account of the Corporation
pursuant to this Agreement.
<PAGE>
SECTION 5. RECEIPT OF SECURITIES
Except as permitted by the second paragraph of this section, the
Custodian or its agent shall hold in a separate account or
accounts, and physically segregated at all times from those of any
other persons, firms or corporations, pursuant to the provisions
hereof, all securities received by it for the account of the
Corporation. The Custodian shall record and maintain a record of
all certificate numbers. Securities so received shall be held in
the name of the Corporation, in the name of an exclusive nominee
duly appointed by the Custodian or in bearer form, as appropriate.
Subject to such rules, regulations or guidelines as the Securities
and Exchange Commission may adopt, the Custodian may deposit all or
any part of the securities owned by the Corporation in a securities
depository which includes any system for the central handling of
securities established by a national securities exchange or a
national securities association registered with the Securities and
Exchange Commission under the Securities Exchange Act of 1934, or
such other person as may be permitted by the Commission, pursuant
to which system all securities of any particular class or series of
any issuer deposited within the system are treated as fungible and
may be transferred or pledged by bookkeeping entry without physical
delivery of such securities.
All securities are to be held or disposed of by the Custodian for,
and subject at all times to the instructions of, the Corporation
pursuant to the terms of this Agreement. The Custodian shall have
no power or authority to assign, hypothecate, pledge or otherwise
dispose of any such securities, except pursuant to the directive of
the Corporation and only for the account of the Corporation as set
forth in Section 6 of this Agreement.
SECTION 6. TRANSFER EXCHANGE, DELIVERY, ETC. OF SECURITIES
The Custodian shall have sole power to release or deliver any
securities of the Corporation held by it pursuant to this
Agreement. The Custodian agrees to transfer, exchange or deliver
securities held by it or its agent hereunder only:
(a) for sales of such securities for the account of the
Corporation, upon receipt of payment therefor;
(b) when such securities are called, redeemed, retired or
otherwise become payable;
(c) for examination upon the sale of any such securities in
accordance with "street delivery" custom which would include
delivery against interim receipts or other proper delivery
receipts;
(d) in exchange for or upon conversion into other securities
alone or other securities and cash whether pursuant to any
plan of
(e) merger, consolidation, reorganization, recapitalization or
readjustment, or otherwise;
<PAGE>
(f) for the purpose of exchanging interim receipts or temporary
certificates for permanent certificates;
(g) upon conversion of such securities pursuant to their terms
into other securities;
(h) upon exercise of subscription, purchase or other similar
rights represented by such securities; for loans of such
securities by the Corporation upon receipt of collateral; or
(i) for other proper corporate purposes.
As to any deliveries made by the Custodian pursuant to items (a),
(b), (c), (d), (e), (f), (g) and (h), securities or cash received
in exchange therefore shall be delivered to the Custodian, its
agent, or to a securities depository. Before making any such
transfer, exchange or delivery, the Custodian shall receive a
custodian order or a facsimile from the Corporation requesting such
transfer, exchange or delivery and stating that it is for a purpose
permitted under Section 6 (whenever a facsimile is utilized, the
Corporation will also deliver an original signed custodian order)
and, in respect to item (i), a copy of a resolution of the Board of
Directors or of the Executive Committee of the Board of Directors
of the Corporation signed by an officer of the Corporation and
certified by its Secretary or an Assistant Secretary, specifying
the securities, setting forth the purpose for which such payment,
transfer, exchange or delivery is to be made, declaring such
purpose to be a proper corporate purpose, and naming the person or
persons to whom such transfer, exchange or delivery of such
securities shall be made.
SECTION 7. CUSTODIAN'S ACTS WITHOUT INSTRUCTIONS
Unless and until the Custodian receives a contrary custodian order
from the Corporation, the Custodian shall or shall cause its agent
to:
(a) present for payment all coupons and other income items held
by the Custodian or its agent for the account of the
Corporation which call for payment upon presentation and hold
all cash received by it upon such payment for the account of
the Corporation;
(b) present for payment all securities held by it or its agent
which mature or when called, redeemed, retired or otherwise
become payable;
(c) ascertain all stock dividends, rights and similar securities
to be issued with respect to any securities held by the
Custodian or its agent hereunder, and to collect and hold for
the account of the Corporation all such securities; and
(d) ascertain all interest and cash dividends to be paid to
security holders with respect to any securities held by the
Custodian or its agent, and to collect and hold such interest
and cash dividends for the account of the Corporation.
<PAGE>
SECTION 8. VOTING AND OTHER ACTION
Neither the Custodian nor any nominee of the Custodian shall vote
any of the securities held hereunder by or for the account of the
Corporation. The Custodian shall promptly deliver to the
Corporation all notices, proxies and proxy soliciting materials
with relation to such securities, such proxies to be executed by
the registered holder of such securities (if registered otherwise
than in the name of the Corporation), but without indicating the
manner in which such proxies are to be voted.
Custodian shall transmit promptly to the Corporation all written
information (including, without limitation, pendency of calls and
maturities of securities and expirations of rights in connection
therewith) received by the Custodian from issuers of the securities
being held for the Corporation. With respect to tender or exchange
offers, the Custodian shall transmit promptly to the Corporation
all written information received by the Custodian from issuers of
the securities whose tender or exchange is sought and from the
party (or his agents) making the tender or exchange offer.
SECTION 9. TRANSFER TAXES
The Corporation shall pay or reimburse the Custodian for any
transfer taxes payable upon transfers of securities made hereunder,
including transfers resulting from the termination of this
Agreement. The Custodian shall execute such certificates in
connection with securities delivered to it under this Agreement as
may be required, under any applicable law or regulation, to exempt
from taxation any transfers and/or deliveries of any such
securities which may be entitled to such exemption.
SECTION 10. CUSTODIAN'S REPORTS
The Custodian shall furnish the Corporation as of the close of
business each day a statement showing all transactions and entries
for the account of the Corporation. The books and records of the
Custodian pertaining to its actions as Custodian under this
Agreement and securities held hereunder by the Custodian shall be
open to inspection and audit by officers of the Corporation,
internal auditors employed by the Corporation's investment adviser,
and independent auditors employed by the Corporation. The
Custodian shall furnish the Corporation in such form as may
reasonably be requested by the Corporation a report, including a
list of the securities held by it in custody for the account of the
Corporation, identification of any subcustodian, and identification
of such securities held by such subcustodian, as of the close of
business of the last business day of each month, which shall be
certified by a duly authorized officer of the Custodian. It is
further understood that additional reports may from time to time be
requested by the Corporation. Should any report ever be filed with
any governmental authority pertaining to lost or stolen securities,
the Custodian will concurrently provide the Corporation with a copy
of that report.
<PAGE>
The Custodian also shall furnish such reports on its systems of
internal accounting control as the Corporation may reasonably
request from time to time.
SECTION 11. CONCERNING CUSTODIAN
For its services hereunder the Custodian shall be paid such
compensation at such times as may from time to time be agreed on in
writing by the parties hereto in a Custodian Fee Agreement.
The Custodian shall not be liable for any action taken in good
faith upon any custodian order or facsimile herein described or
certified copy of any resolution of the Board of Directors or of
the Executive Committee of the Board of Directors of the
Corporation, and may rely on the genuineness of any such document
which it may in good faith believe to have been validly executed.
The Corporation agrees to indemnify and hold harmless Custodian and
its nominee from all taxes, charges, expenses, assessments, claims
and liabilities (including counsel fees) incurred or assessed
against it or its nominee in connection with the performance of
this Agreement, except such as may arise from the Custodian's or
its nominee's own negligent action, negligent failure to act or
willful misconduct. Custodian is authorized to charge any account
of the Corporation for such items. In the event of any advance of
cash for any purpose made by Custodian resulting from orders or
instructions of the Corporation, or in the event that Custodian or
its nominee shall incur or be assessed any taxes, charges,
expenses, assessments, claims or liabilities in connection with the
performance of this Agreement, except such as may arise from its or
its nominee's own negligent action, negligent failure to act or
willful misconduct, any property at any time held for the account
of the Corporation shall be security therefor.
The Custodian shall maintain a standard of care equivalent to that
which would be required of a bailee for hire and shall not be
liable for any loss or damage to the Corporation resulting from
participation in a securities depository unless such loss or damage
arises by reason of any negligence, misfeasance, or willful
misconduct of officers or employees of the Custodian, or from its
failure to enforce effectively such rights as it may have against
any securities depository or from use of an agent, unless such loss
or damage arises by reason of any negligence, misfeasance, or
willful misconduct of officers or employees of the Custodian, or
from its failure to enforce effectively such rights as it may have
against any agent.
SECTION 12. TERMINATION AND AMENDMENT OF AGREEMENT
The Corporation and the Custodian mutually may agree from time to
time in writing to amend, to add to, or to delete from any
provision of this Agreement.
<PAGE>
The Custodian may terminate this Agreement by giving the
Corporation ninety days' written notice of such termination by
registered mail addressed to the Corporation at its principal place
of business.
The Corporation may terminate this Agreement at any time by written
notice thereof delivered, together with a copy of the resolution of
the Board of Directors authorizing such termination and certified
by the Secretary of the Corporation, by registered mail to the
Custodian.
Upon such termination of this Agreement, assets of the Corporation
held by the Custodian shall be delivered by the Custodian to a
successor custodian, if one has been appointed by the Corporation,
upon receipt by the Custodian of a copy of the resolution of the
Board of Directors of the Corporation certified by the Secretary,
showing appointment of the successor custodian, and provided that
such successor custodian is a bank or trust company, organized
under the laws of the United States or of any State of the United
States, having not less than two million dollars aggregate capital,
surplus and undivided profits. Upon the termination of this
Agreement as a part of the transfer of assets, either to a
successor custodian or otherwise, the Custodian will deliver
securities held by it hereunder, when so authorized and directed by
resolution of the Board of Directors of the Corporation, to a duly
appointed agent of the successor custodian or to the appropriate
transfer agents for transfer of registration and delivery as
directed. Delivery of assets on termination of this Agreement
shall be effected in a reasonable, expeditious and orderly manner;
and in order to accomplish an orderly transition from the Custodian
to the successor custodian, the Custodian shall continue to act as
such under this Agreement as to assets in its possession or
control. Termination as to each security shall become effective
upon delivery to the successor custodian, its agent, or to a
transfer agent for a specific security for the account of the
successor custodian, and such delivery shall constitute effective
delivery by the Custodian to the successor under this Agreement.
In addition to the means of termination herein before authorized,
this Agreement may be terminated at any time by the vote of a
majority of the outstanding shares of the Corporation and after
written notice of such action to the Custodian.
SECTION 13. GENERAL
Nothing expressed or mentioned in or to be implied from any
provision of this Agreement is intended to, or shall be construed
to give any person or corporation other than the parties hereto,
any legal or equitable right, remedy or claim under or in respect
of this Agreement, or any covenant, condition or provision herein
contained, this Agreement and all of the covenants, conditions and
provisions hereof being intended to be and being for the sole and
exclusive benefit of the parties hereto and their respective
successors and assigns.
<PAGE>
This Agreement shall be governed by the laws of the State of
Minnesota.
This Agreement supersedes all prior agreements between the parties.
IDS MONEY MARKET SERIES, INC.
IDS Cash Management Fund, Inc.
By: __________________________________
Leslie L. Ogg
Vice President
AMERICAN EXPRESS TRUST COMPANY
By: __________________________________
Vice President
<PAGE>
TRANSFER AGENCY AGREEMENT
AGREEMENT dated as of March 20, 1995, between IDS Money Market
Series, Inc. (the "Corporation"), a Minnesota corporation, on
behalf of its underlying series fund, and American Express
Financial Corporation (the "Transfer Agent"), a Delaware
corporation.
In consideration of the mutual promises set forth below, the
Corporation and the Transfer Agent agree as follows:
1. Appointment of the Transfer Agent. The Corporation hereby
appoints the Transfer Agent, as transfer agent for its shares and
as shareholder servicing agent for the Corporation, and the
Transfer Agent accepts such appointment and agrees to perform the
duties set forth below.
2. Compensation. The Corporation will compensate the Transfer Agent
for the performance of its obligations as set forth in Schedule A.
Schedule A does not include out-of-pocket disbursements of the
Transfer Agent for which the Transfer Agent shall be entitled to
bill the Corporation separately.
The Transfer Agent will bill the Corporation monthly. The fee
provided for hereunder shall be paid in cash by the Corporation to
American Express Financial Corporation within five (5) business
days after the last day of each month.
Out-of-pocket disbursements shall include, but shall not be limited
to, the items specified in Schedule B. Reimbursement by the
Corporation for expenses incurred by the Transfer Agent in any
month shall be made as soon as practicable after the receipt of an
itemized bill from the Transfer Agent.
Any compensation jointly agreed to hereunder may be adjusted from
time to time by attaching to this Agreement a revised Schedule A,
dated and signed by an officer of each party.
3. Documents. The Corporation will furnish from time to time such
certificates, documents or opinions as the Transfer Agent deems to
be appropriate or necessary for the proper performance of its
duties.
4. Representations of the Corporation and the Transfer Agent.
(a) The Corporation represents to the Transfer Agent that all
outstanding shares are validly issued, fully paid and
non-assessable by the Corporation. When shares are hereafter
issued in accordance with the terms of the Corporation's Articles
of Incorporation and its prospectus, such shares shall be validly
issued, fully paid and non-assessable by the Corporation.
(b) The Transfer Agent represents that it is registered under
Section 17A(c) of the Securities Exchange Act of 1934. The
Transfer Agent agrees to maintain the necessary facilities,
equipment and personnel to perform its duties and obligations under
this agreement and to comply with all applicable laws.
<PAGE>
5. Duties of the Transfer Agent. The Transfer Agent shall be
responsible, separately and through its subsidiaries or affiliates,
for the following functions:
(a) Sale of Corporation Shares.
(1) On receipt of an application and payment, wired instructions
and payment, or payment identified as being for the account of a
shareholder, the Transfer Agent will deposit the payment, prepare
and present the necessary report to the Custodian and record the
purchase of shares in a timely fashion in accordance with the terms
of the prospectus. All shares shall be held in book entry form and
no certificate shall be issued unless the Corporation is permitted
to do so by the prospectus and the purchaser so requests.
(2) On receipt of notice that payment was dishonored, the Transfer
Agent shall stop redemptions of all shares owned by the purchaser
related to that payment, place a stop payment on any checks that
have been issued to redeem shares of the purchaser and take such
other action as it deems appropriate.
(b) Redemption of Corporation Shares. On receipt of instructions to
redeem shares in accordance with the terms of the Corporation's
prospectus, the Transfer Agent will record the redemption of shares
of the Corporation, prepare and present the necessary report to the
Custodian and pay the proceeds of the redemption to the
shareholder, an authorized agent or legal representative upon the
receipt of the monies from the Custodian.
(c) Transfer or Other Change Pertaining to Corporation Shares. On
receipt of instructions or forms acceptable to the Transfer Agent
to transfer the shares to the name of a new owner, change the name
or address of the present owner or take other legal action, the
Transfer Agent will take such action as is requested.
(d) Exchange of Corporation Shares. On receipt of instructions to
exchange the shares of the Corporation for the shares of another
fund in the IDS MUTUAL FUND GROUP or other American Express
Financial Corporation product in accordance with the terms of the
prospectus, the Transfer Agent will process the exchange in the
same manner as a redemption and sale of shares.
(e) Right to Seek Assurance. The Transfer Agent may refuse to
transfer, exchange or redeem shares of the Corporation or take any
action requested by a shareholder until it is satisfied that the
requested transaction or action is legally authorized or until it
is satisfied there is no basis for any claims adverse to the
transaction or action. It may rely on the provisions of the
Uniform Act for the Simplification of Fiduciary Security Transfers
or the Uniform Commercial Code. The Corporation shall indemnify
the Transfer Agent for any act done or omitted to be done in
reliance on such laws or for refusing to transfer, exchange or
redeem shares or taking any requested action if it acts on a good
faith belief that the transaction or action is illegal or
unauthorized.
(f) Shareholder Records, Reports and Services.
<PAGE>
(1) The Transfer Agent shall maintain all shareholder accounts,
which shall contain all required tax, legally imposed and
regulatory information; shall provide shareholders, and file with
federal and state agencies, all required tax and other reports
pertaining to shareholder accounts; shall prepare shareholder
mailing lists; shall cause to be printed and mailed all required
prospectuses, annual reports, semiannual reports, statements of
additional information (upon request), proxies and other mailings
to shareholders; and shall cause proxies to be tabulated.
(2) The Transfer Agent shall respond to all valid inquiries related
to its duties under this Agreement.
(3) The Transfer Agent shall create and maintain all records in
accordance with all applicable laws, rules and regulations,
including, but not limited to, the records required by Section
31(a) of the Investment Company Act of 1940.
(g) Dividends and Distributions. The Transfer Agent shall prepare
and present the necessary report to the Custodian and shall cause
to be prepared and transmitted the payment of income dividends and
capital gains distributions or cause to be recorded the investment
of such dividends and distributions in additional shares of the
Corporation or as directed by instructions or forms acceptable to
the Transfer Agent.
(h) Confirmations and Statements. The Transfer Agent shall confirm
each transaction either at the time of the transaction or through
periodic reports as may be legally permitted.
(i) Lost or Stolen Checks. The Transfer Agent will replace lost or
stolen checks issued to shareholders upon receipt of proper
notification and will maintain any stop payment orders against the
lost or stolen checks as it is economically desirable to do.
(j) Reports to Corporation. The Transfer Agent will provide reports
pertaining to the services provided under this Agreement as the
Corporation may request to ascertain the quality and level of
services being provided or as required by law.
(k) Other Duties. The Transfer Agent may perform other duties for
additional compensation if agreed to in writing by the parties to
this Agreement.
6. Ownership and Confidentiality of Records. The Transfer Agent
agrees that all records prepared or maintained by it relating to
the services to be performed by it under the terms of this
Agreement are the property of the Corporation and may be inspected
by the Corporation or any person retained by the Corporation at
reasonable times. The Corporation and Transfer Agent agree to
protect the confidentiality of those records.
7. Action by Board and Opinion of Corporation's Counsel. The
Transfer Agent may rely on resolutions of the Board of Directors or
the Executive Committee of the Board of Directors and on opinion of
counsel for the Corporation.
<PAGE>
8. Duty of Care. It is understood and agreed that, in furnishing
the Corporation with the services as herein provided, neither the
Transfer Agent, nor any officer, director or agent thereof shall be
held liable for any loss arising out of or in connection with their
actions under this Agreement so long as they act in good faith and
with due diligence, and are not negligent or guilty of any willful
misconduct. It is further understood and agreed that the Transfer
Agent may rely upon information furnished to it reasonably believed
to be accurate and reliable. In the event the Transfer Agent is
unable to perform its obligations under the terms of this Agreement
because of an act of God, strike or equipment or transmission
failure reasonably beyond its control, the Transfer Agent shall not
be liable for any damages resulting from such failure.
9. Term and Termination. This Agreement shall become effective on
the date first set forth above (the "Effective Date") and shall
continue in effect from year to year thereafter as the parties may
mutually agree; provided that either party may terminate this
Agreement by giving the other party notice in writing specifying
the date of such termination, which shall be not less than 60 days
after the date of receipt of such notice. In the event such notice
is given by the Corporation, it shall be accompanied by a vote of
the Board of Directors, certified by the Secretary, electing to
terminate this Agreement and designating a successor transfer agent
or transfer agents. Upon such termination and at the expense of
the Corporation, the Transfer Agent will deliver to such successor
a certified list of shareholders of the Corporation (with name,
address and taxpayer identification or Social Security number), a
historical record of the account of each shareholder and the status
thereof, and all other relevant books, records, correspondence, and
other data established or maintained by the Transfer Agent under
this Agreement in the form reasonably acceptable to the
Corporation, and will cooperate in the transfer of such duties and
responsibilities, including provisions for assistance from the
Transfer Agent's personnel in the establishment of books, records
and other data by such successor or successors.
10. Amendment. This Agreement may not be amended or modified in any
manner except by a written agreement executed by both parties.
11. Subcontracting. The Corporation agrees that the Transfer Agent
may subcontract for certain of the services described under this
Agreement with the understanding that there shall be no diminution
in the quality or level of the services and that the Transfer Agent
remains fully responsible for the services. Except for
out-of-pocket expenses identified in Schedule B, the Transfer Agent
shall bear the cost of subcontracting such services, unless
otherwise agreed by the parties.
12. Miscellaneous.
(a) This Agreement shall extend to and shall be binding upon the
parties hereto, and their respective successors and assigns;
provided, however, that this Agreement shall not be assignable
without the written consent of the other party.
(b) This Agreement shall be governed by the laws of the State of
Minnesota.
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed by their respective officers as of the day and year
written above.
IDS MONEY MARKET SERIES, INC.
IDS Cash Management Fund
By: __________________________________
Leslie L. Ogg
Vice President
AMERICAN EXPRESS FINANCIAL CORPORATION
By: __________________________________
Vice President
<PAGE>
SCHEDULE A
IDS MONEY MARKET SERIES, INC.
TRANSFER AGENT FEE
Effective the 20th day of March, 1995, the Annual Per Account
Fee accrued daily and payable monthly is revised as follows:
<TABLE>
<CAPTION>
CLASS FEE
----- ---
<S> <C>
A $ 20
B 21
Y 20
</TABLE>
<PAGE>
Schedule B
OUT-OF-POCKET EXPENSES
The Corporation shall reimburse the Transfer Agent monthly for the
following out-of-pocket expenses:
- - typesetting, printing, paper, envelopes, postage and return
postage for proxy soliciting material, and proxy tabulation costs
- - printing, paper, envelopes and postage for dividend notices,
dividend checks, records of account, purchase confirmations,
exchange confirmations and exchange prospectuses, redemption
confirmations, redemption checks, confirmations on changes of
address and any other communication required to be sent to
shareholders
- - typesetting, printing, paper, envelopes and postage for
prospectuses, annual and semiannual reports, statements of
additional information, supplements for prospectuses and
statements of additional information and other required mailings
to shareholders
- - stop orders
- - outgoing wire charges
- - other expenses incurred at the request or with the consent of the
Corporation
<PAGE>
SHAREHOLDER SERVICE AGREEMENT
This agreement is between IDS Money Market Series, Inc. (the
"Corporation"), on behalf of its underlying fund and American
Express Financial Advisors Inc., the principal underwriter of the
Corporation, for services to be provided to shareholders by
personal financial advisors and other servicing agents. It is
effective on the first day the Corporation offers multiple classes
of shares.
American Express Financial Advisors represents that shareholders
consider their financial advisor or servicing agent a significant
factor in their satisfaction with their investment and, to help
retain financial advisors or servicing agents, it is necessary for
the Corporation to pay annual servicing fees to financial advisors
and other servicing agents.
American Express Financial Advisors represents that fees paid to
financial advisors will be used by financial advisors to help
shareholders thoughtfully consider their investment goals and
objectively monitor how well the goals are being achieved. As
principal underwriter, American Express Financial Advisors will use
its best efforts to assure that other distributors provide
comparable services to shareholders for the servicing fees
received.
American Express Financial Advisors agrees to monitor the services
provided by financial advisors and servicing agents, to measure the
level and quality of services provided, to provide training and
support to financial advisors and servicing agents and to devise
methods for rewarding financial advisors and servicing agents who
achieve an exemplary level and quality of services.
The Corporation agrees to pay American Express financial advisors
and other servicing agents 0.15 percent of the net asset value for
each shareholder account assigned to a financial advisor or
servicing agent that holds either Class A or Class B shares. In
addition, the Corporation agrees to pay American Express Financial
Advisors' costs to monitor, measure, train and support services
provided by financial advisors or servicing agents up to 0.025
percent of the net asset value for each shareholder account
assigned to a financial advisor or servicing agent that holds
either Class A or Class B shares. The Corporation agrees to pay
American Express Financial Advisors in cash within five (5)
business days after the last day of each month.
American Express Financial Advisors agrees to provide the
Corporation, prior to the beginning of the calendar year, a budget
covering its expected costs to monitor, measure, train and support
services and a quarterly report of its actual expenditures.
American Express Financial Advisors agrees to meet with
representatives of the Corporation at their request to provide
information as may be reasonably necessary to evaluate its
performance under the terms of this agreement.
<PAGE>
American Express Financial Advisors agrees that if, at the end of
any month, the expenses of the Corporation, including fees under
this agreement and any other agreement between the Corporation and
American Express Financial Advisors or American Express Financial
Corporation, but excluding taxes, brokerage commissions and charges
in connection with the purchase and sale of assets exceed the most
restrictive applicable state expense limitation for the
Corporation's current fiscal year, the Corporation shall not pay
fees and expenses under this agreement to the extent necessary to
keep the Corporation's expenses from exceeding the limitation, it
being understood that American Express Financial Advisors will
assume all unpaid expenses and bill the Corporation for them in
subsequent months but in no event can the accumulation of unpaid
expenses or billing be carried past the end of the Corporation's
fiscal year.
This agreement shall continue in effect for a period of more than
one year so long as it is reapproved at least annually at a meeting
called for the purpose of voting on the agreement by a vote, in
person, of the members of the Board who are not interested persons
of the Corporation and have no financial interest in the operation
of the agreement, and of all the members of the Board.
This agreement may be terminated at any time without payment of any
penalty by a vote of a majority of the members of the Board who are
not interested persons of the Corporation and have no financial
interest in the operation of the agreement or by American Express
Financial Advisors. The agreement will terminate automatically in
the event of its assignment as that term is defined in the
Investment Company Act of 1940. This agreement may be amended at
any time provided the amendment is approved in the same manner the
agreement was initially approved and the amendment is agreed to by
American Express Financial Advisors.
Approved this 20th day of March, 1995.
IDS MONEY MARKET SERIES, INC.
IDS Cash Management Fund
__________________________________
Leslie L. Ogg
Vice President
AMERICAN EXPRESS FINANCIAL ADVISORS INC.
__________________________________
Vice President
<PAGE>
ADMINISTRATIVE SERVICES AGREEMENT
AGREEMENT made the 20th day of March, 1995, by and between IDS
Money Market Series, Inc. (the "Corporation"), a Minnesota
corporation, on behalf of its underlying fund, and American Express
Financial Corporation, a Delaware corporation.
PART ONE: SERVICES
(1) The Corporation hereby retains American Express Financial
Corporation, and American Express Financial Corporation hereby
agrees, for the period of this Agreement and under the terms and
conditions hereinafter set forth, to furnish the Corporation
continuously with all administrative, accounting, clerical,
statistical, correspondence, corporate and all other services of
whatever nature required in connection with the administration of
the Corporation as provided under this Agreement; and to pay such
expenses as may be provided for in Part Three hereof; subject
always to the direction and control of the Board of Directors, the
Executive Committee and the authorized officers of the Corporation.
American Express Financial Corporation agrees to maintain an
adequate organization of competent persons to provide the services
and to perform the functions herein mentioned. American Express
Financial Corporation agrees to meet with any persons at such times
as the Board of Directors deems appropriate for the purpose of
reviewing American Express Financial Corporation's performance
under this Agreement.
(2) The Corporation agrees that it will furnish to American Express
Financial Corporation any information that the latter may
reasonably request with respect to the services performed or to be
performed by American Express Financial Corporation under this
Agreement.
(3) It is understood and agreed that in furnishing the Corporation
with the services as herein provided, neither American Express
Financial Corporation, nor any officer, director or agent thereof
shall be held liable to the Corporation or its creditors or
shareholders for errors of judgment or for anything except willful
misfeasance, bad faith, or gross negligence in the performance of
its duties, or reckless disregard of its obligations and duties
under the terms of this Agreement. It is further understood and
agreed that American Express Financial Corporation may rely upon
information furnished to it reasonably believed to be accurate and
reliable.
PART TWO: COMPENSATION FOR SERVICES
(1) The Corporation agrees to pay to American Express Financial
Corporation, and American Express Financial Corporation covenants
and agrees to accept from the Corporation in full payment for the
services furnished, based on the net assets of the Corporation as
set forth in the following table:
<PAGE>
<TABLE>
<CAPTION>
Assets Annual Rate At
(Billions) Each Asset Level
----------- ----------------
<S> <C>
First $1 0.030%
Next 0.50 0.027
Next 0.50 0.025
Next 0.50 0.022
Over $2.5 0.020
</TABLE>
The administrative fee for each calendar day of each year shall be
equal to 1/365th (1/366th in each leap year) of the total amount
computed. The computation shall be made for each such day on the
basis of net assets as of the close of business of the full
business day two (2) business days prior to the day for which the
computation is being made. In the case of the suspension of the
computation of net asset value, the administrative fee for each day
during such suspension shall be computed as of the close of
business on the last full business day on which the net assets were
computed. As used herein, "net assets" as of the close of a full
business day shall include all transactions in shares of the
Corporation recorded on the books of the Corporation for that day.
(2) The administrative fee shall be paid on a monthly basis and, in
the event of the termination of this Agreement, the administrative
fee accrued shall be prorated on the basis of the number of days
that this Agreement is in effect during the month with respect to
which such payment is made.
(3) The administrative fee provided for hereunder shall be paid in
cash by the Corporation to American Express Financial Corporation
within five (5) business days after the last day of each month.
PART THREE: ALLOCATION OF EXPENSES
(1) The Corporation agrees to pay:
(a) Administrative fees payable to American Express Financial
Corporation for its services under the terms of this Agreement.
(b) Taxes.
(c) Fees and charges of its independent certified public
accountants for services the Corporation requests.
(d) Fees and expenses of attorneys (i) it employs in matters not
involving the assertion of a claim by a third party against the
Corporation, its directors and officers, (ii) it employs in
conjunction with a claim asserted by the Board of Directors against
American Express Financial Corporation, except that American
Express Financial Corporation shall reimburse the Corporation for
such fees and expenses if it is ultimately determined by a court of
competent jurisdiction, or American Express Financial Corporation
agrees, that it is liable in whole or in part to the Corporation,
and (iii) it employs to assert a claim against a third party.
<PAGE>
(e) Fees paid for the qualification and registration for public
sale of the securities of the Corporation under the laws of the
United States and of the several states in which such securities
shall be offered for sale.
(f) Office expenses which shall include a charge for occupancy,
insurance on the premises, furniture and equipment, telephone,
telegraph, electronic information services, books, periodicals,
published services, and office supplies used by the Corporation,
equal to the cost of such incurred by American Express Financial
Corporation.
(g) Fees of consultants employed by the Corporation.
(h) Directors, officers and employees expenses which shall include
fees, salaries, memberships, dues, travel, seminars, pension,
profit sharing, and all other benefits paid to or provided for
directors, officers and employees, directors and officers
liability insurance, errors and omissions liability insurance,
worker's compensation insurance and other expenses applicable to
the directors, officers and employees, except the Corporation will
not pay any fees or expenses of any person who is an officer or
employee of American Express Financial Corporation or its
affiliates.
(i) Filing fees and charges incurred by the Corporation in
connection with filing any amendment to its articles of
incorporation, or incurred in filing any other document with the
State of Minnesota or its political subdivisions.
(j) Organizational expenses of the Corporation.
(k) One-half of the Investment Company Institute membership dues
charged jointly to the IDS MUTUAL FUND GROUP and American Express
Financial Corporation.
(l) Expenses properly payable by the Corporation, approved by the
Board of Directors.
(2) American Express Financial Corporation agrees to pay all
expenses associated with the services it provides under the terms
of this Agreement. Further, American Express Financial Corporation
agrees that if, at the end of any month, the expenses of the
Corporation under this Agreement and any other agreement between
the Corporation and American Express Financial Corporation, but
excluding those expenses set forth in (1)(b) of this Part Three,
exceed the most restrictive applicable state expenses limitation,
the Corporation shall not pay those expenses set forth in (1)(a)
and (c) through (m) of this Part Three to the extent necessary to
keep the Corporation's expenses from exceeding the limitation, it
being understood that American Express Financial Corporation will
assume all unpaid expenses and bill the Corporation for them in
subsequent months but in no event can the accumulation of unpaid
expenses or billing be carried past the end of the Corporation's
fiscal year.
<PAGE>
PART FOUR: MISCELLANEOUS
(1) American Express Financial Corporation shall be deemed to be an
independent contractor and, except as expressly provided or
authorized in this Agreement, shall have no authority to act for or
represent the Corporation.
(2) A "full business day" shall be as defined in the By-laws.
(3) The Corporation recognizes that American Express Financial
Corporation now renders and may continue to render investment
advice and other services to other investment companies and persons
which may or may not have investment policies and investments
similar to those of the Corporation and that American Express
Financial Corporation manages its own investments and/or those of
its subsidiaries. American Express Financial Corporation shall be
free to render such investment advice and other services and the
Corporation hereby consents thereto.
(4) Neither this Agreement nor any transaction had pursuant hereto
shall be invalidated or in anyway affected by the fact that
directors, officers, agents and/or shareholders of the Corporation
are or may be interested in American Express Financial Corporation
or any successor or assignee thereof, as directors, officers,
stockholders or otherwise; that directors, officers, stockholders
or agents of American Express Financial Corporation are or may be
interested in the Corporation as directors, officers, shareholders,
or otherwise; or that American Express Financial Corporation or any
successor or assignee, is or may be interested in the Corporation
as shareholder or otherwise, provided, however, that neither
American Express Financial Corporation, nor any officer, director
or employee thereof or of the Corporation, shall sell to or buy
from the Corporation any property or security other than shares
issued by the Corporation, except in accordance with applicable
regulations or orders of the United States Securities and Exchange
Commission.
(5) Any notice under this Agreement shall be given in writing,
addressed, and delivered, or mailed postpaid, to the party to this
Agreement entitled to receive such, at such party's principal place
of business in Minneapolis, Minnesota, or to such other address as
either party may designate in writing mailed to the other.
(6) American Express Financial Corporation agrees that no officer,
director or employee of American Express Financial Corporation will
deal for or on behalf of the Corporation with himself as principal
or agent, or with any corporation or partnership in which he may
have a financial interest, except that this shall not prohibit
officers, directors or employees of American Express Financial
Corporation from having a financial interest in the Corporation or
in American Express Financial Corporation.
(7) The Corporation agrees that American Express Financial
Corporation may subcontract for certain of the services described
under this Agreement with the understanding that there shall be no
diminution in the quality or level of the services and that
American Express Financial Corporation remains fully responsible
for the services.
<PAGE>
(8) This Agreement shall extend to and shall be binding upon the
parties hereto, and their respective successors and assigns;
provided, however, that this Agreement shall not be assignable
without the written consent of the other party. This Agreement
shall be governed by the laws of the State of Minnesota.
PART FIVE: RENEWAL AND TERMINATION
(1) This Agreement shall become effective on the date first set
forth above (the "Effective Date") and shall continue in effect
from year to year thereafter as the parties may mutually agree;
provided that either party may terminate this Agreement by giving
the other party notice in writing specifying the date of such
termination, which shall be not less than 60 days after the date of
receipt of such notice.
(2) This Agreement may not be amended or modified in any manner
except by a written agreement executed by both parties.
IN WITNESS THEREOF, the parties hereto have executed the foregoing
Agreement as of the day and year first above written.
IDS MONEY MARKET SERIES, INC.
IDS Cash Management Fund
By: __________________________________
Leslie L. Ogg
Vice President
AMERICAN EXPRESS FINANCIAL CORPORATION
By: __________________________________
Vice President
<PAGE>
INDEPENDENT AUDITORS' CONSENT
_________________________________________________________________
The Board of Directors and Shareholders
IDS Money Market Series, Inc.
We consent to the use of our report incorporated herein by
reference and to the references to our Firm under the headings "Financial
Highlights" in Part A and "INDEPENDENT AUDITORS" in Part B of the Registration
Statement.
/s/ KPMG Peat Marwick LLP
KPMG Peat Marwick LLP
Minneapolis, Minnesota
February 27, 1995
<PAGE>
PLAN AND AGREEMENT OF DISTRIBUTION
This plan and agreement is between IDS Money Market Series, Inc.
(the "Corporation") on behalf of its underlying fund and American
Express Financial Advisors Inc., the principal underwriter of the
Corporation, for distribution services to the Corporation. It is
effective on the first day the Corporation offers multiple classes
of shares.
The plan and agreement has been approved by members of the Board of
Directors (the "Board") of the Corporation who are not interested
persons of the Corporation and have no direct or indirect financial
interest in the operation of the plan or any related agreement, and
all of the members of the Board, in person, at a meeting called for
the purpose of voting on the plan and agreement.
The plan and agreement provides that:
1. The Corporation will reimburse American Express Financial
Advisors for all sales and promotional expenses attributable to the
sale of Class B shares, including sales commissions, business and
employee expenses charged to distribution of Class B shares, and
corporate overhead appropriately allocated to the sale of Class B
shares.
2. The amount of the reimbursement shall be equal on an annual
basis to 0.75% of the average daily net assets of the Corporation
attributable to Class B shares. The amount so determined shall be
paid to American Express Financial Advisors in cash within five (5)
business days after the last day of each month. American Express
Financial Advisors agrees that if, at the end of any month, the
expenses of the Corporation, including fees under this agreement
and any other agreement between the Corporation and American
Express Financial Advisors or American Express Financial
Corporation, but excluding taxes, brokerage commissions and charges
in connection with the purchase and sale of assets exceed the most
restrictive applicable state expense limitation for the
Corporation's current fiscal year, the Corporation shall not pay
fees and expenses under this agreement to the extent necessary to
keep the Corporation's expenses from exceeding the limitation, it
being understood that American Express Financial Advisors will
assume all unpaid expenses and bill the Corporation for them in
subsequent months, but in no event can the accumulation of unpaid
expenses or billing be carried past the end of the Corporation's
fiscal year.
3. For each purchase of Class B shares, after eight years the
Class B shares will be converted to Class A shares and those assets
will no longer be included in determining the reimbursement amount.
4. The Corporation understands that if a shareholder redeems
Class B shares before they are converted to Class A shares,
American Express Financial Advisors will impose a sales charge
directly on the redemption proceeds to cover those expenses it has
previously incurred on the sale of those shares.
<PAGE>
5. American Express Financial Advisors agrees to provide at
least quarterly an analysis of distribution expenses and to meet
with representatives of the Corporation as reasonably requested to
provide additional information.
6. The plan and agreement shall continue in effect for a period
of more than one year provided it is reapproved at least annually
in the same manner in which it was initially approved.
7. The plan and agreement may not be amended to increase
materially the amount that may be paid by the Corporation without
the approval of a least a majority of the outstanding shares of
Class B. Any other amendment must be approved in the manner in
which the plan and agreement was initially approved.
8. This agreement may be terminated at any time without payment
of any penalty by a vote of a majority of the members of the Board
who are not interested persons of the Corporation and have no
financial interest in the operation of the plan and agreement, or
by vote of a majority of the outstanding Class B shares, or by
American Express Financial Advisors. The plan and agreement will
terminate automatically in the event of its assignment as that term
is defined in the Investment Company Act of 1940.
Approved this 20th day of March, 1995.
IDS MONEY MARKET SERIES, INC.
IDS Cash Management Fund
__________________________________
Leslie L. Ogg
Vice President
AMERICAN EXPRESS FINANCIAL ADVISORS INC.
__________________________________
Vice President
<PAGE>
[ARTICLE] 6
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JUL-31-1994
[PERIOD-END] JUL-31-1994
[INVESTMENTS-AT-COST] 1154081000
[INVESTMENTS-AT-VALUE] 1154081000
[RECEIVABLES] 1342103
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1155423103
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</TABLE>
