<PAGE>
PAGE 1
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. 44 (File No. 2-54516) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY _____
ACT OF 1940
Amendment No. 35 (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 Sept. 29, 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:
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 25, 1995.
<PAGE>
PAGE 2
Cross-reference sheet showing the location in its prospectus and
the Statement of Additional Information 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 PART B
Section Section in
Item No. in Prospectus Item No. Statement of Additional Information
<S> <C> <C> <C>
1 Cover page of prospectus 10 Cover page of SAI
2(a) Sales charge and fund expenses 11 Table of Contents
(b) The fund in brief
(c) The fund in brief 12 NA
3(a) Financial highlights 13(a) Additional Investment Policies; all
(b) NA appendices except Dollar-Cost Averaging
(c) Performance (b) Additional Investment Policies
(d) Financial highlights (c) Additional Investment Policies
(d) Portfolio Transactions
4(a) The fund in brief; Investment policies and
risks; How the fund is organized 14(a) Directors and officers of the fund;**
(b) Investment policies and risks Directors and officers
(c) Investment policies and risks (b) Directors and Officers
(c) Directors and Officers
5(a) Directors and officers; Directors and
officers of the fund (listing) 15(a) NA
(b)(i) Investment manager and transfer agent; (b) NA
About American Express Financial (c) Directors and Officers
Corporation -- General Information
(b)(ii) Investment manager and transfer agent 16(a)(i) How the fund is organized; About American
(b)(iii) Investment manager and transfer agent Express Financial Corporation**
(c) Portfolio manager (a)(ii) Agreements: Investment Management Services
(d) Investment manager and transfer agent Agreement, Plan and Supplemental
(e) Investment manager and transfer agent Agreement of Distribution
(f) Distributor (a)(iii) Agreements: Investment Management Services Agreement
(g) Investment manager and transfer agent; (b) Agreements: Investment Management Services Agreement
About American Express Financial (c) NA
Corporation -- General Information (d) Agreements: Administrative Services
Agreement, Shareholder Service Agreement
5A(a) * (e) NA
(b) * (f) Agreements: Distribution Agreement
(g) NA
6(a) Shares; Voting rights (h) Custodian; Independent Auditors
(b) NA (i) Agreements: Transfer Agency Agreement; Custodian
(c) NA
(d) Voting rights 17(a) Portfolio Transactions
(e) Cover page; Special shareholder services (b) Brokerage Commissions Paid to Brokers Affiliated
(f) Dividends and capital gains distributions; with American Express Financial Corporation
Reinvestments (c) Portfolio Transactions
(g) Taxes (d) Portfolio Transactions
(h) Alternative sales arrangements (e) Portfolio Transactions
7(a) Distributor 18(a) Shares; Voting rights**
(b) Key terms; Valuing assets (b) NA
(c) How to buy, exchange or sell shares
(d) How to buy shares 19(a) Investing in the Fund
(e) NA (b) Valuing Fund Shares; Investing in the Fund
(f) Distributor (c) NA
8(a) How to sell shares 20 Taxes
(b) NA
(c) How to buy shares: Three ways to invest 21(a) Agreements: Distribution Agreement
(d) How to buy, exchange or sell shares: (b) Agreements: Distribution Agreement
Redemption policies -- "Important..." (c) NA
9 None 22(a) Performance Information (for money market
funds only)
(b) Performance Information (for all funds except
money market funds)
23 Financial Statements
*Designates information is located in annual report.
**Designates location in prospectus.
/TABLE
<PAGE>
PAGE 3
IDS Cash Management Fund
Prospectus
Sept. 29, 1995
The goal of IDS Cash Management Fund, a part of IDS Money Market
Series, Inc., is to provide maximum current income consistent with
liquidity and stability of principal. The fund invests in money
market securities.
An investment in the fund is neither insured nor guaranteed by the
U.S. government. There can be no assurance that the fund will be
able to maintain a stable net asset value of $1 per share.
This prospectus contains facts that can help you decide if the fund
is the right investment for you. Read it before you invest and
keep it for future reference.
Additional facts about the fund are in a Statement of Additional
Information (SAI), filed with the Securities and Exchange
Commission. The SAI, dated Sept. 29, 1995, 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. INVESTMENTS IN THE FUND
INVOLVE INVESTMENT RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL.
American Express Shareholder Service
P.O. Box 534
Minneapolis, MN
55440-0534
612-671-3733
TTY: 800-846-4852
<PAGE>
PAGE 4
Table of contents
The fund in brief
Goal
Types of fund investments and their risks
Manager and distributor
Portfolio manager
Alternative sales arrangements
Sales charge and fund expenses
Performance
Financial highlights
Yield
Key terms
Investment policies and risks
Facts about investments and their risks
Alternative investment option
Valuing assets
How to buy, exchange or sell shares
Alternative sales arrangements
How to buy shares
How to exchange shares
How to sell shares
Class B - contingent deferred sales charge alternative
Waivers of the sales charge for Class B shares
Special shareholder services
Services
Quick telephone reference
Distributions and taxes
Dividend and capital gain distributions
Reinvestments
Taxes
How the fund is organized
Shares
Voting rights
Shareholder meetings
Directors and officers
Investment manager and transfer agent
Distributor
About American Express Financial Corporation
General information
<PAGE>
PAGE 5
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 and their risks
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
(AEFC), a provider of financial services since 1894. AEFC
currently manages more than $43 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 AEFC.
Portfolio manager
Terry Fettig joined AEFC 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.
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. Fund 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.
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PAGE 6
<TABLE><CAPTION>
Shareholder transaction expenses
Class A Class B Class Y
<S> <C> <C> <C>
Maximum sales charge on purchases
(as a percentage of offering price)..............0% 0% 0%
Maximum deferred sales charge imposed on
redemptions
(as a percentage of original purchase price).....0% 5% 0%
</TABLE>
Annual fund operating expenses*
(% of average daily net assets):
Class A Class B Class Y
Management fee 0.30% 0.30% 0.30%
12b-1 fee 0.00% 0.75% 0.00%
Other expenses** 0.35% 0.36% 0.35%
Total 0.65% 1.41% 0.65%
*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 agency fee (under
other expenses) for Class B are based on agreements for that class
and that class Y does not have a service fee.
**Other expenses include an administrative services fee, a transfer
agency fee and other non-advisory expenses.
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:
1 year 3 years 5 years 10 years
Class A $ 7 $21 $36 $ 81
Class B $64 $85 $97 $149**
Class B* $14 $45 $77 $149**
Class Y $ 7 $21 $36 $ 81
*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
eight years.
This example does not represent actual expenses, past or future.
Actual expenses may be higher or lower than those shown. Expense
information in this table has been restated to reflect estimates of
fund expenses from changes in fees approved by shareholders in
November 1994. 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.
<PAGE>
PAGE 7
Performance
Financial highlights
<TABLE>
<CAPTION>
IDS Cash Management Fund
Performance
Financial highlights
Fiscal period ended July 31,
Per share income and capital changes*
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
Classes
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A B*** Y***
Net asset value, $1.00$1.00$1.00 $1.00 $1.00 $1.00$1.00 $1.00 $1.00 $1.00$1.00 $1.00
beginning of period
Income from investment operations:
Net investment income .05 .02 .02 .03 .02 .04 .07 .08 .08 .06 .06 .07
Less distributions:
Dividends from net (.05)(.02) (.02) (.03) (.02) (.04)(.07) (.08) (.08) (.06)(.06)(.07)
investment income
Net asset value, $1.00 $1.00$1.00 $1.00 $1.00 $1.00$1.00 $1.00 $1.00 $1.00$1.00 $1.00
end of period
Ratios/supplemental data
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
Classes
A B*** Y***
Net assets, end of period$1,707 $98 $86$1,154$1,053$1,230$1,655$1,617$1,392$1,136$852$896
(in millions)
Ratio of expenses to.73% 1.41%+.65%+ .94%**.94%**.91% .77% .74%.75% .69% .71% .71%
average daily net assets
Ratio of net income4.99% 4.73%+5.53%+2.61%2.36% 3.84%6.55% 7.81% 8.42% 6.53%5.64% 6.99%
to average daily net assets
Total return 5.0% 2.0%2.3% 2.6% 2.4% 3.8% 6.7% 7.9% 8.7% 6.7% 5.7% 7.2%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**During the fiscal years ended July 31, 1993 and 1994, AEFC voluntarily reimbursed the fund for
a portion of its expenses. Had AEFC not done so, the ratio fo expenses to average daily net assets would
have been 0.97%.
***Inception date was March 20, 1995 for Class B and Class Y.
+Adjusted to an annual basis.
</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.
Yield
The fund's annualized simple yield for the seven days ended
July 29, 1995, was 5.19% for Class A, 4.44% for Class B and 5.19%
for Class Y. The fund's annualized compound yield for the same
period was 5.33% for Class A, 4.55% for Class B and 5.33% for Class
Y. 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.<PAGE>
PAGE 8
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.
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<PAGE>
PAGE 9
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.
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: A security is illiquid if it 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.
Lending portfolio securities: The fund may lend its securities to
earn income so long as borrowers provide collateral equal to the
market value of the loans. The risks are that borrowers will not
provide collateral when required or return securities when due.
Unless shareholders approve otherwise, loans may not exceed 30% of
the fund's net assets.
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.
<PAGE>
PAGE 10
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.
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; Shares convert to
maximum CDSC of 5%, Class A after eight years;
declines to 0% after six CDSC waived in certain
years; 12b-1 fee of 0.75% circumstances
of average daily net 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.
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.
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PAGE 11
Ongoing expenses
If you purchase Class A If you purchase Class B
shares shares
o Your shares will have o The distribution and
a lower expense ratio transfer agency fees for
than Class B shares Class B will cause your
because Class A does not shares to have a higher
pay a distribution fee expense ratio and to pay
and the transfer agency lower dividends than
fee for Class A is lower Class A shares. After
than the fee for Class B. eight years, Class B
As a result, Class A shares shares will convert to
will pay higher dividends Class A shares and will
than Class B shares. 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.
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:
o 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.
o 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.
<PAGE>
PAGE 12
o 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.
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. Your application will be accepted only
when federal funds (funds of the Federal Reserve System) are
available to the fund, normally within three days of receipt of
your application. Once your account is set up, you can choose
among several convenient ways to invest.
Important: When opening an account, you must provide AEFC with
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.
Purchase policies:
o 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.
o The minimums allowed for investment may change from time to
time.
o Wire orders can be accepted only on days when your bank, AEFC,
the fund and Norwest Bank Minneapolis are open for business.
o Wire purchases are completed when wired payment is received
and the fund accepts the purchase.
o AEFC and the fund are not responsible for any delays that
occur in wiring funds, including delays in processing by the
bank.
o You must pay any fee the bank charges for wiring.
o The fund reserves the right to reject any application for any
reason.
o If your application does not specify which class of shares you
are purchasing, it will be assumed that you are investing in
Class A shares.
<PAGE>
PAGE 13
<TABLE><CAPTION>
Three ways to invest
1
<S> <C> <C>
By regular accountSend your check and applicationMinimum amounts
(or your name and account numberInitial investment: $2,000
if you have an established account)Additional
to: investments: $ 100
American Express Financial Advisors Inc.Account balances: $1,000*
P.O. Box 74
Minneapolis, MN 55440-0074
Your financial advisor will help you
with this process.
2
By scheduled Contact your financial advisorMinimum amounts
investment planto set up one of the followingInitial investment: $2,000
scheduled plans: Additional
investments: $100/mo.
o automatic payroll deductionAccount balances: $1,000
o bank authorization
o direct deposit of
Social Security check
o other plan approved by the fund
3
By wire If you have an established account,If this information is not
you may wire money to: included, the order may be
rejected and all money
Norwest Bank Minneapolis received by the fund, less
Routing No. 091000019 any costs the fund or AEFC
Minneapolis, MN incurs, will be returned
Attn:Domestic Wire Dept. promptly.
Give these instructions: Minimum amounts:
Credit IDS Account #00-30-015 Each wire investment: $1,000
for 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.
</TABLE>
How to exchange shares
You can exchange your shares of the fund 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.
<PAGE>
PAGE 14
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.
<TABLE><CAPTION>
Three ways to request an exchange or sale of shares
1
<S> <C>
By letter Include in your letter:
o the name of the fund(s)
o the class of shares to be exchanged or redeemed
o your account number(s) (for exchanges, both funds must
be registered in the same ownership)
o your Taxpayer Identification Number (TIN)
o the dollar amount or number of shares you want to
exchange or sell
o signature of all registered account owners
o for redemptions, indicate how you want your sales proceeds delivered to you
o any paper certificates of shares you hold
Regular mail:
American Express Shareholder Service
Attn: Redemptions
P.O. Box 534
Minneapolis, MN 55440-0534
Express mail:
American Express Shareholder Service
Attn: Redemptions
733 Marquette Ave.
Minneapolis, MN 55402
2
By phone
American Express Telephoneo The fund and AEFC will honor any telephone exchange or redemption request believed
Transaction Service: to be authentic and will use reasonable procedures to confirm that they are. This
800-437-3133 or includes asking identifying questions and tape recording calls. If reasonable
612-671-3800 procedures are not followed, the fund or AEFC will be liable for any loss resulting
from fraudulent requests.<PAGE>
PAGE 15
o Phone exchange and redemption privileges automatically apply to all accounts except
custodial, corporate or qualified retirement accounts unless you request these privileges
NOT apply by writing American Express Shareholder Service. Each registered owner must sign
the request.
o AEFC answers phone requests promptly, but you may experience delays when call volume is
high. If you are unable to get through, use mail procedure as an alternative.
o Acting on your instructions, your financial advisor may conduct telephone transactions
on your behalf.
o Phone privileges may be modified or discontinued at any time.
3
By draft
For Class A only, free drafts are available and can be used just like a check to withdraw $100 or more from your account. 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.
Minimum amount
Redemption:$100
</TABLE>
Exchange policies:
o 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.
o Exchanges must be made into the same class of shares of the new
fund.
o If your exchange creates a new account, it must satisfy the
minimum investment amount for new purchases.
o Once we receive your exchange request, you cannot cancel it.
o Shares of the new fund may not be used on the same day for
another exchange.
o If your shares are pledged as collateral, the exchange will be
delayed until written approval is obtained from the secured party.
o AEFC 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:
o For Class B only 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 class from which you
redeemed. If you reinvest in Class B, any CDSC you paid on the
amount you are reinvesting also will be reinvested. To take
advantage of this option, send a written request within 30 days of
<PAGE>
PAGE 16
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.
o 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 AEFC that your check has cleared.)
<TABLE><CAPTION>
Three ways to receive payment when you sell shares
1
<S> <C>
By regular or express mail o Mailed to the address on record.
o Payable to names listed on the account.
NOTE: The express mail delivery charges
you pay will vary depending on the
courier you select.
2
By wire o Minimum wire redemption: $1,000.
o Request that money be wired to your bank.
o 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 scheduled payout plan o Minimum payment: $50.
o Contact your financial advisor or American Express
Shareholder Service to set up regular
payments to you on a monthly, bimonthly,
quarterly, semiannual or annual basis.
o Buying new shares while under a payout
plan may be disadvantageous because of
the sales charges.
</TABLE>
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:
If a redemption is The percentage rate
made during the for the CDSC is:
First year 5%
Second year 4%
Third year 4%
Fourth year 3%
Fifth year 2%
Sixth year 1%
Seventh year 0%
<PAGE>
PAGE 17
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.
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:
o In the event of the shareholder's death,
o Purchased by any trustee, director, officer or employee of a fund
or AEFC or its subsidiaries,
o Purchased by any American Express financial advisor,
o Held in a trusteed employee benefit plan,
o 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.
Special shareholder services
Services
To help you track and evaluate the performance of your investments,
AEFC provides these services:
<PAGE>
PAGE 18
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 Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
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. Net realized capital
gains, if any, from selling securities are distributed at the end
of the calendar year. Short-term capital gains earned by the fund
are paid to shareholders as part of their ordinary income dividend
and are taxable as ordinary income.
<PAGE>
PAGE 19
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:
o you request the fund in writing or by phone to pay
distributions to you monthly in cash, or
o 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.
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 tax statement showing the kinds
and total amount of all distributions you received during the
previous year. You must report 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
<PAGE>
PAGE 20
Security or Employer Identification number. The TIN must be
certified under penalties of perjury on your application when you
open an account at AEFC.
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:
o a $50 penalty for each failure to supply your correct TIN
o a civil penalty of $500 if you make a false statement that
results in no backup withholding
o 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.
<TABLE><CAPTION>
How to determine the correct TIN
Use the Social Security or
For this type of account: Employer Identification number
of:
<S> <C>
Individual or joint account The individual or individuals
listed on the account
Custodian account of a minor The 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, pension The legal entity (not the
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
</TABLE>
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.<PAGE>
PAGE 21
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
1 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.
Directors and officers of the fund
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
<PAGE>
PAGE 22
Independent directors
Lynne V. Cheney
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 who are officers and/or employees of AEFC
William H. Dudley
Executive vice president, AEFC.
David R. Hubers
President and chief executive officer, AEFC.
John R. Thomas
Senior vice president, AEFC.
Officers who also are officers and/or employees of AEFC
Peter J. Anderson
Vice president of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
<PAGE>
PAGE 23
Other officer
Leslie L. Ogg
Vice president, general counsel and secretary of all funds in the
IDS MUTUAL FUND GROUP.
Refer to the SAI for the directors' and officers' biographies.
Investment manager and transfer agent
The fund pays AEFC for managing its portfolio, providing
administrative services and serving as transfer agent (handling
shareholder accounts).
Under its Investment Management Services Agreement, AEFC determines
which securities will be purchased, held or sold (subject to the
direction and control of the fund's board of directors). Under the
current agreement, effective March 20, 1995, the fund pays AEFC a
fee for these services based on the average daily net assets of the
fund, as follows:
Assets Annual rate
(billions) at each 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
For the fiscal year ended July 31, 1995, under the current and
prior agreements, the fund paid AEFC a total investment management
fee of 0.32% 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 AEFC 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, AEFC
maintains shareholder accounts and records. The fund pays AEFC an
annual fee per shareholder account for this service as follows:
o Class A $20
o Class B $21
o Class Y $20
Distributor
The fund sells shares at net asset value through American Express
Financial Advisors, a wholly owned subsidiary of AEFC, 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.
<PAGE>
PAGE 24
Financial advisors may receive different compensation for selling
Class A, Class B and Class Y shares.
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 the current agreement for the fiscal year ended July 31,
1995 was 0.75% of its average daily net assets. For Class A
shares, the total 12b-1 fee paid by the fund under the prior
agreement for the last fiscal year ended July 31, 1995 was 0.05% 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's Class A shares for the fiscal
year ended July 31, 1995 were 0.73% of its average daily net
assets. For the period from March 20, 1995 (the inception date for
Class B and Class Y) to July 31, 1995, annualized expenses for
Class B and Class Y were 1.41% and 0.65% respectively.
Total fees and expenses (excluding taxes and brokerage commissions)
cannot exceed the most restrictive applicable state expense
limitation.
About American Express Financial Corporation
General information
The AEFC 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, AEFC also manages investments for itself and
its subsidiaries, IDS Certificate Company and IDS Life Insurance
Company. Total assets under management on July 31, 1995 were more
than $123 billion.
American Express Financial Advisors serves individuals and
businesses through its nationwide network of more than 175 offices
and more than 7,900 advisors.
Other AEFC subsidiaries provide investment management and related
services for pension, profit sharing, employee savings and
endowment funds of businesses and institutions.
AEFC 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
AEFC.<PAGE>
PAGE 25
STATEMENT OF ADDITIONAL INFORMATION
FOR
IDS CASH MANAGEMENT FUND
Sept. 29, 1995
This Statement of Additional Information (SAI) is not a prospectus.
It should be read together with the 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, 1995, and it is to be used with the
prospectus dated Sept. 29, 1995, and the Annual Report for the
fiscal year ended July 31, 1995.
<PAGE>
PAGE 26
TABLE OF CONTENTS
Goal and Investment Policies.........................See Prospectus
Additional Investment Policies................................p. 3
Portfolio Transactions........................................p. 5
Brokerage Commissions Paid to Brokers Affiliated with
American Express Financial Corporation......................p. 6
Performance Information.......................................p. 6
Valuing Fund Shares...........................................p. 8
Investing in the Fund.........................................p. 9
Redeeming Shares..............................................p. 10
Pay-out Plans.................................................p. 12
Exchanges.....................................................p. 13
Taxes.........................................................p. 13
Agreements....................................................p. 14
Directors and Officers........................................p. 17
Custodian.....................................................p. 21
Independent Auditors..........................................p. 21
Financial Statements..............................See Annual Report
Prospectus....................................................p. 21
Appendix A: Description of Money Market Securities...........p. 22
Appendix B: Dollar-Cost Averaging............................p. 24
<PAGE>
PAGE 27
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 leases.
'Invest more than 5% of its total assets 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 total assets.
'Invest more than 5% of its total assets 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 (AEFC) 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 AEFC 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 fund securities in excess of 30% of its net assets, at market
value. 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<PAGE>
PAGE 28
additional collateral on a daily basis. The risks are that the
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 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. For purposes of complying with Ohio law, the
fund will not invest more than 15% of its total assets in a
combination of illiquid securities, 144A securities and securities
of companies, including any predecessor, that have a record of less
than three years continuous operations.
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 <PAGE>
PAGE 29
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.
PORTFOLIO TRANSACTIONS
Subject to policies set by the board of directors, AEFC 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, AEFC
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.
AEFC has a strict Code of Ethics that prohibits its affiliated
personnel from engaging in personal investment activities that
compete with or attempt to take advantage of planned portfolio
transactions for any fund in the IDS MUTUAL FUND GROUP. AEFC
carefully monitors compliance with its Code of Ethics.
Normally, the fund's securities are traded on a principal rather
than an agency basis. In other words, AEFC 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. AEFC 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 AEFC or any AEFC subsidiary.
When the fund buys or sells the same security as another fund or
account, AEFC 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, 1995, $0 for fiscal year 1994, and $0 for
fiscal year 1993.
No transactions were directed to brokers because of research
services they provided to the fund.
As of the fiscal year ended July, 1995, 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 as presented below:<PAGE>
PAGE 30
Value of Securities
Owned at End of
Name of Issuer Fiscal Year
First Chicago $ 9,996,994
Goldman Sachs Group 71,427,658
Merrill Lynch 68,460,686
Nations Bank 7,000,000
BROKERAGE COMMISSIONS PAID TO BROKERS AFFILIATED WITH AMERICAN
EXPRESS FINANCIAL CORPORATION
Affiliates of American Express Company (American Express) (of which
AEFC 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. AEFC will use an American Express affiliate only
if (i) AEFC 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
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.
AEFC may direct brokerage to compensate an affiliate. AEFC will
receive research on South Africa from New Africa Advisors, a
wholly-owned subsidiary of Sloan Financial Group. AEFC owns 100%
of IDS Capital Holdings Inc. which in turn owns 40% of Sloan
Financial Group. New Africa Advisors will send research to AEFC
and in turn American Express Financial Corporation will direct
trades to a particular broker. The broker will have an agreement
to pay New Africa Advisors. All transactions will be on a best
execution basis. Compensation received will be reasonable for the
services rendered.
No brokerage commissions were paid to brokers affiliated with AEFC
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 <PAGE>
PAGE 31
invested to the ending redeemable value, according to the following
formula:
P(1+T)n = 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
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:
Compound Yield = (return for seven-day period + 1) 365/7 - 1
IDS Cash Management Fund's simple annualized yields for Class A,
Class B and Class Y were 5.19%, 4.44% and 5.19% respectively; its
compound yield for Class A, Class B and Class Y were 5.33%, 4.55%
and 5.33% respectively on July 31, 1995, the last day of the fund's
fiscal year.
<PAGE>
PAGE 32
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
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.
<PAGE>
PAGE 33
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, AEFC 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 AEFC and AEFC financial advisors is $1,000 for IDS Cash
Management Fund (except payroll deduction plans), with a minimum
additional purchase of $25.
Systematic Investment Programs
After you make your initial investment of $2,000 for IDS Cash
Management Fund, 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
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 in the same class of the fund. Dividend and
capital gain distributions, if any, paid by the fund may be used to<PAGE>
PAGE 34
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: For Class A only 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, 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 of the fund. Records maintained by AEFC will be<PAGE>
PAGE 35
binding on all parties. Neither AEFC 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 AEFC 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
AEFC, 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.
For this fund, participants in these qualified plans may be subject
to a deferred sales charge on certain redemptions. The deferred
sales charge on certain redemptions 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.
<PAGE>
PAGE 36
The deferred sales charge varies depending on the number of
participants in the qualified plan and total plan assets as
follows:
Deferred Sales Charge
Number of Participants
Total Plan Assets 1-99 100 or more
Less than $1 million 4% 0%
$1 million or more 0% 0%
PAY-OUT PLANS
Shareholders of IDS Cash Management 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 AEFC 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.
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. <PAGE>
PAGE 37
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 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
application of federal, state and local income tax laws to fund
distributions.
<PAGE>
PAGE 38
AGREEMENTS
Investment Management Services Agreement
The fund has an Investment Management Services Agreement with AEFC.
AEFC is paid a fee based on the following schedule:
Annual rate
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
On July 31, 1995, the average daily rate applied to the fund's net
assets was equal to 0.298% 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 and current
agreements, the amount paid was $4,733,219 for the year ended
July 31, 1995, $3,600,005 for 1994, and $3,764,991 for 1993.
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 securities of the fund; and expenses properly payable by
the fund, approved by the board of directors. Under the prior and
current agreements, the fund paid nonadvisory expenses of
$1,001,686 for the year ended July 31, 1995, $580,091 for 1994, and
$435,857 for 1993.
Administrative Services Agreement
The fund has an Administrative Services Agreement with AEFC. Under
this agreement, the fund pays AEFC for providing administration and
accounting services. The fee is calculated as follows:
<PAGE>
PAGE 39
Assets Annual rate
(billions) each asset level
First $1 0.030%
Next 0.50 0.027
Next 0.50 0.025
Next 0.50 0.022
Over $2.5 0.020
On July 31, 1995, the average daily rate applied to the fund's net
assets was equal to 0.028% on an annual basis. The fee is
calculated for each calendar day on the basis of net assets as of
the close of business two business days prior to the day for which
the calculation is made.
Transfer Agency Agreement
The fund has a Transfer Agency Agreement with AEFC. This agreement
governs AEFC'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, AEFC 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 and for Class B is $21 per year. The
fees paid to AEFC may be changed from time to time upon agreement
of the parties without shareholder approval. The fund paid fees of
$4,013,453 for the fiscal year ended July 31, 1995.
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>
American
Express
Financial $83,274 $16,293 None $873,530*
Advisors
</TABLE>
*Distribution fees paid pursuant to the Plan and Supplemental
Agreement of Distribution.<PAGE>
PAGE 40
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. 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,
AEFC will assume all expenses in excess of the limitation. AEFC
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 AEFC for expenses it assumes.
<PAGE>
PAGE 41
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 Martin, the Interpublic Group of Companies, Inc.
(advertising) and FPL Group Inc. (holding company for Florida Power
and Light).
William H. Dudley+**
Born in 1932.
2900 IDS Tower
Minneapolis, MN
Executive vice president and director of AEFC.
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. (architectural
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 AEFC.
Previously, senior vice president, finance and chief financial
officer of AEFC.
<PAGE>
PAGE 42
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,
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).
<PAGE>
PAGE 43
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 AEFC.
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).
+ 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 AEFC or American Express.
<PAGE>
PAGE 44
The board also has appointed officers who are responsible for day-
to-day business decisions based on policies it has established.
Officers who also are officers and/or employees of AEFC
Peter J. Anderson
Born in 1942.
IDS Tower 10
Minneapolis, MN
Vice president-investments of all funds in the IDS MUTUAL FUND
GROUP. Director and senior vice president-investments of AEFC.
Melinda S. Urion
Born in 1953.
IDS Tower 10
Minneapolis, MN
Treasurer of all funds in the IDS MUTUAL FUND GROUP. Vice
president and corporate controller of AEFC. Director and executive
vice president and controller of IDS Life Insurance Company.
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, general counsel and secretary of all funds in the
IDS MUTUAL FUND GROUP.
Members of the board, who are not officers of the fund or directors
of AEFC receive an annual fee of $1,500. They also receive
attendance and other fees, the cost of which the fund shares with
the other funds in the IDS MUTUAL FUND GROUP. These fees include
attendance of meetings of the Contracts Committee, $750; meetings
of the Audit, Board, Executive or Investment Review Committees,
$500; meetings of the Personnel Committee, $300; out-of-state,
$500; and Chair of the Contracts Committee, $5,000. Expenses for
attending those meetings are also reimbursed. Upon retirement, or
earlier if for approved reasons, the independent directors receive
monthly payments equal to 1/2 or the annual fee divided by 12 for
as many months as the director served on the board up to 120 months
or until the date of death. There are no death benefits and the
plan is not funded.
During the fiscal year that ended July 31, 1995, the members of the
board, for attending up to 31 meetings, received the following
compensation, in total, from all funds in the IDS MUTUAL FUND
GROUP.
<PAGE>
PAGE 45
<TABLE><CAPTION>
Compensation Table
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 $1,792 $ 274 $ 750 $70,000
Robert F. Froehlke 1,858 1,055 750 72,700
Heinz F. Hutter 1,450 218 363 56,300
(Part of Year)
Anne P. Jones 1,818 239 750 71,000
Donald M. Kendall 1,717 724 750 67,000
Melvin R. Laird 1,817 583 750 71,000
Lewis W. Lehr 1,785 607 731 69,700
Edson W. Spencer 1,886 268 400 73,900
Wheelock Whitney 1,814 413 750 70,900
C. Angus Wurtele 1,443 212 744 56,000
(Part of Year)
</TABLE>
On July 31, 1995, the fund's directors and officers as a group
owned less than 1% of the outstanding shares. During the fiscal
year ended July 31, 1995, no director or officer earned more than
$60,000 from this fund. All directors and officers as a group
earned $15,286, including $4,593 of retirement plan expense, from
this fund.
CUSTODIAN
The fund's securities and cash are held by American Express Trust
Company, 1200 Northstar Center West, 625 Marquette Ave.,
Minneapolis, MN 55402-2307, 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.
INDEPENDENT AUDITORS
The financial statements contained in the Annual Report to
shareholders, for the fiscal year ended July 31, 1995, 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 1995 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, 1995,
is hereby incorporated in this SAI by reference.
<PAGE>
PAGE 46
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.<PAGE>
PAGE 47
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 AEFC becomes aware that a security owned by the fund is
downgraded below the second highest rating, AEFC will either sell
the security or recommend to the fund's board of directors why it
should not be sold.
<PAGE>
PAGE 48
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).
<PAGE>
PAGE 49
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, 1995, 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, 1995,
and the financial highlights for each of the years in
the ten-year period ended July 31, 1995. 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, 1995, 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, 1995,
and the financial highlights for the periods stated in
the first paragraph above, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
September 1, 1995<PAGE>
PAGE 50
<TABLE>
<CAPTION>
Statement of assets and liabilities
IDS Cash Management Fund
July 31, 1995
______________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,878,400,128) $1,878,400,128
Cash in bank on demand deposit 12,633,483
Accrued interest receivable 1,713,651
_____________________________________________________________________________________________________________
Total assets 1,892,747,262
_____________________________________________________________________________________________________________
Liabilities
____________________________________________________________________________________________________________
Dividends payable to shareholders 1,298,290
Accrued investment management services fee 60,990
Accrued distribution fees 7,703
Accrued transfer agency fee 44,415
Accrued administrative services fee 5,765
Other accrued expenses 208,920
_____________________________________________________________________________________________________________
Total liabilities 1,626,083
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,891,121,179
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value; $ 18,911,988
Additional paid-in capital 1,872,239,395
Undistributed net investment income 948
Accumulated net realized loss (30,152)
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock$1,891,121,179
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $1,707,277,685
Class B $ 98,045,864
Class Y $ 85,797,630
Net asset value per share of outstanding capital stock: Class A shares 1,707,346,677 $ 1.00
Class B shares 98,048,196 $ 1.00
Class Y shares 85,803,933 $ 1.00
See accompanying notes to financial statements. <PAGE>
PAGE 51
Financial statements
Statement of operations
IDS Cash Management Fund
Year ended July 31, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income:
Interest $84,566,077
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 4,733,219
Distribution fee
Class A 735,343
Class B 138,187
Transfer agency fee 4,013,453
Incremental transfer agency fee - Class B 1,160
Administrative services fee 177,389
Compensation of directors 1,936
Compensation of officers 13,350
Custodian fees 95,284
Postage 441,455
Registration fees 211,631
Reports to shareholders 190,141
Audit fees 31,250
Administrative 10,841
Other 5,798
_____________________________________________________________________________________________________________
Total expenses 10,800,437
_____________________________________________________________________________________________________________
Investment income -- net 73,765,640
_____________________________________________________________________________________________________________
Realized gain -- net
_____________________________________________________________________________________________________________
Net realized gain (Note 3) 755
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $73,766,395
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 52
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Cash Management Fund
Year ended July 31,
_____________________________________________________________________________________________________________
Operations and distributions 1995 1994
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 73,765,640$ 27,818,919
Net realized gain 755 6,546
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 73,766,395 27,825,465
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (71,448,349) (27,818,831)
Class B (871,329) --
Class Y (1,445,224) --
_____________________________________________________________________________________________________________
Total distributions (73,764,902) (27,818,831)
_____________________________________________________________________________________________________________
Capital share transactions at constant $1 net asset value
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares 5,083,998,0913,450,597,013
Class B shares 145,099,672 --
Class Y shares 149,989,216 --
Fund merger (Note 4)
Class A shares 12,051,967 --
Reinvestment of distributions at net asset value
Class A shares 68,543,809 26,872,301
Class B shares 804,519 --
Class Y shares 1,211,841 --
Payments for redemptions
Class A shares (4,610,927,088)(3,376,885,865)
Class B shares (Note 2) (47,855,995) --
Class Y shares (65,397,125) --
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 737,518,907 100,583,449
_____________________________________________________________________________________________________________
Total increase in net assets 737,520,400 100,590,083
Net assets at beginning of year 1,153,600,7791,053,010,696
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$948 and $210) $1,891,121,179$1,153,600,779
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 53
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 (as amended) as
a diversified, open-end management investment company. The fund
offers Class A, Class B and Class Y shares. Class A shares have no
sales charge. Class B shares, which the fund began offering on
March 20, 1995, may be subject to a contingent deferred sales
charge and such shares automatically convert to Class A after eight
years. Class Y shares, which the fund also began offering on March
20, 1995, have no sales charge and are offered only to qualifying
institutional investors.
All classes of shares have identical voting, dividend, liquidation
and other rights, and the same terms and conditions, except that
the level of distribution fee and transfer agent fee (class
specific expenses) differs among classes. Income, expenses (other
than class specific expenses) and realized and unrealized gains or
losses on investments are allocated to each class of shares based
upon its relative net assets.
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.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes. The character of
distributions made during the year from net investment income or
net realized gains may differ from their ultimate characterization
for federal income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized
gains (losses) were recorded by the fund.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, additional paid-in-capital and
accumulated net realized loss have been increased by $978.
Dividends to shareholders
<PAGE>
PAGE 54
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 and sales charges
Under terms of a prior agreement that ended March 19, 1995, the
fund paid AEFC a fee for managing its investments, recordkeeping
and other specified services. The fee was a percentage of the
fund's average daily net assets consisting of a group asset charge
in reducing percentages from 0.34% to 0.26% annually.
Also under terms of a prior agreement, the fund paid AEFC a
distribution fee at an annual rate of $6 per shareholder account
and a transfer agency fee at an annual rate of $20 per shareholder
account. The transfer agency fee was reduced by earnings on monies
pending shareholder redemptions.
Effective March 20, 1995, when the fund began offering multiple
classes of shares, the fund entered into agreements with AEFC for
managing it's portfolio, providing administrative services and
serving as transfer agent as follows: Under its Investment
Management Services Agreement, AEFC determines which securities
will be purchased, held or sold. The management fee is a percentage
of the fund's average daily net assets in reducing percentages from
0.31% to 0.24% annually. Under an Administrative Services
Agreement, the fund pays AEFC for administration and accounting
services at a percentage of the fund's average daily net assets in
reducing percentages from 0.03% to 0.02% annually.
Under a separate Transfer Agency Agreement, AEFC maintains
shareholder accounts and records. The fund pays AEFC an annual fee
per shareholder account for this service as follows:
o Class A $20
o Class B $21
o Class Y $20
Also effective March 20, 1995, the fund entered into agreements
with American Express Financial Advisors Inc. for distribution and
shareholder servicing-related services as follows: Under a Plan and
Agreement of Distribution, 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.
AEFC will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges by American Express Financial Advisors Inc. for
distributing Class B shares were $83,274 for the year ended July
31, 1995.
<PAGE>
PAGE 55
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 $4,593 for the year ended July 31, 1995.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities aggregated
$11,090,712,483 and $10,366,394,110, respectively, for the year
ended July 31, 1995. Realized gains and losses are determined on an
identified cost basis.
___________________________________________________________________
4.Effective with the close of business on Nov. 18, 1994, IDS
Planned Investment Account was acquired by IDS Cash Management
Fund. The merger was accomplished by a tax free exchange of
12,051,967 shares of the IDS Cash Management Fund with a net asset
value of $1 per share for net assets of $12,051,967 from the IDS
Planned Investment Account.
5. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on page 6 of the prospectus.
<PAGE>
PAGE 56
<TABLE>
<CAPTION>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
July 31, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <S> <S> <C>
Certificates of deposit (5.2%)
Domestic (0.8%)
NationsBank North Carolina
09-12-95 5.75% $ 7,000,000 $ 7,000,000
NBD Bank Domestic
09-29-95 5.70 8,200,000 8,200,000
_____________
Total 15,200,000
____________________________________________________________________________________________________________________________
Eurodollar (4.4%)
Banque Paribas Yankee
08-01-95 6.19 24,000,000 24,000,000
Canadian Imperial Bank Yankee
08-01-95 5.90 12,000,000 12,000,000
09-05-95 5.89 7,000,000 7,000,389
04-04-96 6.37 10,000,000 10,018,994
06-03-96 6.40 10,000,000 10,000,000
Societe Generale Yankee
06-13-96 6.30 10,000,000 10,000,000
07-22-96 6.05 10,000,000 10,000,000
_____________
Total 83,019,383
_____________________________________________________________________________________________________________________________
Total certificates of deposit
(Cost: $98,219,383) 98,219,383
_____________________________________________________________________________________________________________________________
Commercial paper (69.2%)
Banks and savings & loans (13.9%)
ABN AMRO Canada
08-28-95 5.79 9,000,000 8,961,120
ABN AMRO North Amer Finance
10-13-95 5.71 15,000,000 14,828,754
10-13-95 5.73 27,000,000 26,690,662
Bank New York Delaware
06-03-96 6.32 5,000,000 5,000,000
Bank One Milwaukee
09-19-95 5.74 7,100,000 7,100,000
Banque Paribas Canada
08-08-95 5.97 16,000,000 15,981,520
Ciesco LP
08-25-95 5.74 5,400,000 5,379,480
09-08-95 5.76 10,980,000 10,913,705
09-14-95 5.76 10,400,000 10,327,292
09-14-95 5.92 10,900,000 10,822,331
09-21-95 5.92 12,000,000 11,900,890
Deutsche Bank Financial
09-11-95 5.74 15,000,000 14,902,967
Dresdner US Finance
09-06-95 5.84 12,000,000 11,931,000
See accompanying notes to investments in securities.<PAGE>
PAGE 57
First Chicago
02-16-96 5.79 10,000,000 (c) 9,996,994
Fleet Funding
08-10-95 6.02 12,200,000 (b) 12,181,761
08-11-95 5.78 1,800,000 (b) 1,797,125
08-29-95 5.77 619,000 (b) 616,241
09-08-95 5.77 15,000,000 (b) 14,909,275
Kredietbank
North Amer Finance
08-25-95 6.22 5,000,000 4,979,733
Natl Australia Funding
Delaware
10-05-95 5.70 15,000,000 14,847,792
10-05-95 5.71 15,000,000 14,847,521
Societe Generale North Amer
08-25-95 5.93 5,500,000 5,478,477
08-25-95 5.94 8,100,000 8,068,248
Wachovia Bank
08-02-95 5.98 20,000,000 20,000,000
_____________
Total 262,462,888
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.6%)
Coca-Cola
08-03-95 6.01 11,500,000 11,496,218
_____________________________________________________________________________________________________________________________
Broker dealers (7.4%)
Goldman Sachs
Group LP
08-01-95 6.63 10,000,000 10,000,000
09-12-95 5.99 15,000,000 14,896,750
09-15-95 5.97 22,000,000 21,838,575
10-18-95 5.76 25,000,000 24,692,333
Merrill Lynch
08-02-95 6.00 10,400,000 10,398,278
08-04-95 5.99 300,000 299,851
08-17-95 5.99 8,000,000 7,978,844
08-24-95 6.18 9,000,000 8,965,213
08-25-95 5.78 11,000,000 10,957,833
09-14-95 5.75 20,000,000 19,860,667
01-26-96 5.87 10,000,000 (c) 10,000,000
_____________
Total 139,888,344
______________________________________________________________________________________________________________________________
Building materials (0.4%)
Illinois Tool Works
08-29-95 5.76 7,600,000 7,566,129
_____________________________________________________________________________________________________________________________
Commercial finance (1.7%)
PACCAR Financial
08-16-95 5.76 10,000,000 9,976,125
USL Capital
08-24-95 5.77 2,300,000 2,291,580
09-07-95 5.76 9,755,000 9,697,651
09-08-95 5.79 10,000,000 9,939,306
_____________
Total 31,904,662
_____________________________________________________________________________________________________________________________
Consumer finance - personal loans (3.8%)
Avco Financial
08-07-95 5.99 10,607,000 10,596,499
08-28-95 5.77 17,000,000 16,926,815
Household Finance
08-01-95 5.99 10,000,000 10,000,000
08-07-95 5.99 15,000,000 14,985,125
08-30-95 5.76 10,200,000 10,153,001
09-08-95 5.77 10,000,000 9,939,517
_____________
Total 72,600,957
______________________________________________________________________________________________________________________________
Electronics (0.7%)
Siemens
08-24-95 5.77 5,800,000 5,778,730
09-13-95 5.77 6,600,000 6,554,829
_____________
Total 12,333,559
<PAGE>
PAGE 58
_____________________________________________________________________________________________________________________________
Energy (1.7%)
Alabama Power
08-25-95 5.76 7,000,000 6,973,260
Chevron Transport
09-06-95 5.79 15,000,000 (b) 14,913,900
09-07-95 5.78 9,600,000 (b) 9,543,365
_____________
Total 31,430,525
_____________________________________________________________________________________________________________________________
Financial services (13.3%)
A.I. Credit
08-28-95 5.76 16,600,000 16,528,786
Amer General
08-17-95 5.96 11,000,000 10,971,058
09-12-95 5.77 12,800,000 (b) 12,714,432
Associates
North Amer
08-15-95 5.99 9,600,000 9,577,787
08-23-95 5.76 13,200,000 13,153,859
Beneficial
09-05-95 5.78 10,000,000 9,944,194
01-23-96 5.84 10,000,000 (c) 10,000,000
CIT Group Holdings
08-11-95 5.99 17,800,000 17,770,581
08-15-95 5.98 8,000,000 7,981,520
09-06-95 5.79 12,600,000 12,527,550
Commercial Credit
08-03-95 5.95 19,500,000 19,493,554
Corporate Asset
Funding
08-04-95 5.96 4,800,000 (b) 4,797,612
08-11-95 5.98 15,000,000 (b) 14,975,291
09-22-95 5.76 7,000,000 (b) 6,942,367
10-10-95 5.73 10,000,000 9,890,139
General Electric
Capital
10-10-95 5.70 15,000,000 14,836,083
10-16-95 5.73 6,000,000 5,928,560
05-06-96 6.39 10,000,000 10,000,000
General Electric
Capital Services
08-22-95 5.78 5,200,000 5,182,558
Toyota Motor Credit
08-02-95 5.98 8,000,000 7,998,680
Transamerica Financial
08-18-95 5.76 13,100,000 13,064,554
08-25-95 5.76 5,500,000 5,478,990
USAA Capital
09-22-95 5.73 6,200,000 6,149,222
09-28-95 5.73 6,600,000 6,539,709
_____________
Total 252,447,086
_____________________________________________________________________________________________________________________________
Food (2.6%)
Cargill Financial Markets
08-16-95 5.76 14,500,000 (b) 14,465,381
Cargill Global Funding
08-29-95 5.93 5,800,000 (b) 5,773,520
CPC Intl
08-30-95 5.76 4,725,000 4,703,190
09-25-95 5.96 20,000,000 (b) 19,820,639
PepsiCo
08-18-95 5.97 4,400,000 4,387,741
______________
Total 49,150,471
_____________________________________________________________________________________________________________________________
Health care (2.1%)
Amgen
10-20-95 6.23 8,400,000 8,287,067
10-20-95 6.24 10,000,000 9,865,556
08-18-95 5.78 11,000,000 10,969,093
Sandoz
10-05-95 5.74 11,500,000 11,382,061
______________
Total 40,503,777
<PAGE>
PAGE 59
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.6%)
Mobil Australia Finance
Delaware
08-22-95 5.75 11,732,000 (b) 11,692,854
_____________________________________________________________________________________________________________________________
Industrial transportation (3.3%)
Consolidated Rail
08-04-95 5.98 15,000,000 (b) 14,992,600
08-31-95 5.83 10,000,000 (b) 9,952,083
09-22-95 5.89 10,000,000 (b) 9,916,367
09-22-95 5.97 7,400,000 (b) 7,337,256
Norfolk Southern
08-30-95 5.95 11,000,000 (b) 10,947,897
09-18-95 5.97 10,300,000 (b) 10,219,385
______________
Total 63,365,588
_____________________________________________________________________________________________________________________________
Insurance (6.8%)
Aon
08-22-95 6.04 10,000,000 9,965,292
11-06-95 5.95 2,700,000 2,657,805
Lincoln Natl
08-09-95 5.77 20,000,000 (b) 19,974,489
09-05-95 5.78 5,300,000 (b) 5,270,629
09-15-95 5.76 13,000,000 (b) 12,907,212
Pacific Mutual Life
08-03-95 5.91 900,000 899,708
08-16-95 5.89 14,100,000 14,065,808
09-07-95 5.76 12,000,000 11,929,700
SAFECO Credit
09-12-95 5.74 4,000,000 3,973,493
09-22-95 5.80 13,000,000 12,892,216
St. Paul Companies
08-18-95 5.76 10,000,000 (b) 9,972,989
08-23-95 5.77 3,500,000 (b) 3,487,723
09-06-95 5.77 20,000,000 (b) 19,885,400
______________
Total 127,882,464
_____________________________________________________________________________________________________________________________
Media (0.3%)
Dun & Bradstreet
10-31-95 5.75 5,300,000 5,224,306
_____________________________________________________________________________________________________________________________
Retail (3.8%)
Colgate Palmolive
08-07-95 5.99 6,000,000 (b) 5,994,050
08-21-95 5.94 7,500,000 (b) 7,475,500
09-20-95 5.77 10,000,000 (b) 9,920,694
10-20-95 5.76 15,000,000 (b) 14,811,000
Penney (JC)
Funding
08-03-95 5.98 10,000,000 9,996,706
08-29-95 5.77 7,900,000 7,864,731
09-08-95 5.76 15,000,000 14,909,433
_____________
Total 70,972,114
_____________________________________________________________________________________________________________________________
Utilities - gas (1.2%)
Ameritech
12-11-95 5.94 6,000,000 5,873,060
Southern California Gas
08-09-95 6.51 9,299,000 (b) 9,285,981
08-14-95 6.45 7,000,000 (b) 6,984,201
______________
Total 22,143,242
<PAGE>
PAGE 60
_____________________________________________________________________________________________________________________________
Utilities - telephone (4.4%)
AT&T Capital
08-23-95 5.78 13,000,000 12,954,319
10-16-95 5.72 9,800,000 9,683,315
BellSouth Capital Funding
08-02-95 6.07 10,000,000 9,998,339
Southwestern Bell Capital
08-04-95 5.96 6,500,000 (b) 6,496,788
08-08-95 6.62 10,000,000 (b) 9,987,556
08-21-95 5.94 4,100,000 (b) 4,086,607
09-01-95 5.91 10,000,000 (b) 9,949,625
09-12-95 5.75 5,000,000 (b) 4,966,167
US WEST Communications
09-08-95 5.92 7,100,000 7,056,158
09-20-95 5.97 8,900,000 8,827,440
______________
Total 84,006,314
_____________________________________________________________________________________________________________________________
Miscellaneous (0.6%)
United Parcel Service
09-08-95 5.96 11,500,000 11,428,745
_____________________________________________________________________________________________________________________________
Total commercial paper
(Cost: $1,308,500,243) $1,308,500,243
_____________________________________________________________________________________________________________________________
Letters of credit (24.9%)
ABN Amro-
Sci Systems
08-10-95 5.78 6,200,000 6,191,088
Bank of Amer-
AES Barbers Point
08-17-95 5.77 25,000,000 24,936,222
09-22-95 5.76 2,000,000 1,983,533
09-22-95 5.77 10,000,000 9,917,378
Bank of Amer-
Hyundai Motor Finance
08-29-95 5.80 5,000,000 4,977,561
Banque Paribas-
Cogentrix of Richmond
08-15-95 5.78 22,000,000 21,950,806
08-18-95 5.78 11,000,000 10,970,132
Banque Paribas-
Southeast Paper
Manufacturing
09-06-95 5.82 6,000,000 5,965,320
09-07-95 6.05 7,000,000 6,957,337
Barclays Bank-
Banco Nacional De Mexico
09-28-95 5.81 10,000,000 9,907,361
Barclays Bank-
Banco Real Estate
10-25-95 5.80 17,000,000 16,770,405
10-25-95 6.29 23,000,000 22,668,736
Barclays Bank-
Corporacion Andina De Forento
08-15-95 6.06 8,000,000 7,981,427
Canadian Imperial Bank-
Commed Fuel
09-25-95 5.81 8,605,000 8,529,407
Credit Agricole-
Louis Dreyfus Series B
08-11-95 5.99 10,000,000 9,983,500
08-18-95 5.80 10,000,000 9,972,800
08-21-95 5.80 20,000,000 19,936,000
09-08-95 5.81 11,200,000 11,131,786
Credit Suisse-
Cemex
08-17-95 6.11 8,900,000 8,876,227
Credit Suisse-
Cosco
09-11-95 5.93 20,000,000 19,866,522
Credit Suisse-
Cosco Cayman
08-23-95 6.00 10,000,000 9,963,700
<PAGE>
PAGE 61
Credit Suisse-
Pemex Capital
08-02-95 5.88 12,000,000 11,998,057
08-02-95 6.01 8,000,000 7,998,671
09-05-95 5.99 12,500,000 12,428,177
09-20-95 5.93 15,000,000 14,878,333
09-27-95 5.94 8,500,000 8,421,269
10-05-95 5.71 10,000,000 9,898,438
10-17-95 5.75 5,000,000 4,939,363
10-17-95 5.76 10,000,000 9,878,511
Credit Suisse-
Sinochem Amer
09-25-95 5.84 6,000,000 5,947,017
10-10-95 5.77 10,000,000 9,889,361
First Natl Bank Chicago-
Commed Fuel
08-09-95 6.02 7,658,000 7,647,908
08-16-95 5.98 13,783,000 13,748,887
08-29-95 5.77 16,902,000 16,826,673
09-18-95 5.74 6,500,000 6,450,773
Societe Generale-
JMG Funding
08-22-95 5.78 27,000,000 26,909,437
Societe Generale-
Michelin Tire
09-07-95 5.91 15,000,000 14,909,813
Swiss Bank-
Enterprise Capital Funding
08-11-95 5.77 9,500,000 (b) 9,484,853
Toronto Dominion Bank-
Franciscan Services
08-14-95 5.77 30,050,000 29,987,713
_____________________________________________________________________________________________________________________________
Total letters of credit
(Cost: $471,680,502) $ 471,680,502
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,878,400,128)(d) $1,878,400,128
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 62
_____________________________________________________________________________________________________________________________
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 to reflect current market conditions; rate shown is the effective rate on July 31, 1995.
(d) Also represents the cost of securities for federal income tax purposes at July 31, 1995.
</TABLE>
<PAGE>
PAGE 63
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits:
(a) Financial Statements included in Part B of this Registration
Statement:
o Independent Auditors' Report dated September 1, 1995
o Statement of Assets and Liabilities, July 31, 1995
o Statement of Operations, Year ended July 31, 1995
o Statements of Changes in Net Assets, for the two-year
period ended July 31, 1994 and July 31, 1995
o Notes to Financial Statements
o Investments in Securities, July 31, 1995
o 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, filed electronically as Exhibit 5 to
Registrant's Post-Effective Amendment No. 42 to Registration
Statement No. 2-54516 is incorporated herein by reference.
6. Form of Distribution Agreement between Registrant and American
Express Financial Advisors, Inc. dated March 20, 1995, filed
electronically as Exhibit 6 to Registrant's Post-Effective
Amendment No. 42 to Registration Statement No. 2-54516 is
incorporated herein by reference.
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(a). Form of Custodian Agreement between Registrant and
American Express Trust Company, dated March 20, 1995,
filed electronically as Exhibit 8 to Registrant's Post-
Effective Amendment No. 42 to Registration Statement No.
2-54516 is incorporated herein by reference.
<PAGE>
PAGE 64
8(b). Form of Custody Agreement between Morgan Stanley Trust
Company and IDS Bank & Trust dated May, 1993, filed
electronically as Exhibit 8(b) to Registrant's Post-
Effective Amendment No. 43 to Registration Statement No.
2-54516, is incorporated herein by reference.
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, filed electronically as Exhibit 9(b) to
Registrant's Post-Effective Amendment No. 42 to
Registration Statement No. 2-54516 is incorporated herein
by reference.
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, filed electronically as Exhibit 9(d) to
Registrant's Post-Effective Amendment No. 42 to
Registration Statement No. 2-54516 is incorporated herein
by reference.
9(e). Form of Administrative Services Agreement between
Registrant and American Express Financial Corporation,
dated March 20, 1995, filed electronically as Exhibit
9(e) to Registrant's Post-Effective Amendment No. 42 to
Registration Statement No. 2-54516 is incorporated herein
by reference.
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. Opinion and consent of counsel as to the legality of the
securities being registered is filed with Registrant's most
recent 24f-2 notice.
11. Independent Auditors' Consent is filed electronically
herewith.
12. None.
13. Not applicable.
<PAGE>
PAGE 65
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, filed electronically as Exhibit 15 to Registrant's Post-
Effective Amendment No. 42 to Registration Statement No. 2-
54516 is incorporated herein by reference.
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. Copy of plan pursuant to Rule 18f-3 under the 1940 Act is
filed electronically as Exhibit 18 to Registrant's Post-
Effective Amendment No. 43 to Registration Statement No. 2-
54516, is incorporated herein by reference.
19(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.
19(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.
Item 25. Persons Controlled by or Under Common Control with
Registrant.
None.
Item 26. Number of Holders of Securities.
(1) (2)
Number of Record
Holders as of
Title of Class Sept. 15, 1995
Common Stock 210,703
<PAGE>
PAGE 66
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 67
<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-
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--Investment Accounting
American Express Financial Advisors IDS Tower 10 Vice President-
Minneapolis, MN 55440 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 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
<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--Risk Management Products
American Express Financial Advisors IDS Tower 10 Vice President-Risk
Minneapolis, MN 55440 Management Products
IDS Life Insurance Company Vice President-Risk
Management Products
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-American
Express 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 Products Group
American Enterprise Life Insurance Co. IDS Tower 10 Director and President
Minneapolis, MN 55440
American Express Financial Advisors Vice President -
Institutional Products
Group
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, Senior Vice President and Technology Advisor
American Express Financial Advisors IDS Tower 10 Senior Vice President and
Minneapolis, MN 55440 Technology Advisor
<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 Director, Vice President
and Treasurer
IDS Cable II Corporation Director, 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 Director, Vice President
and Treasurer
IDS Partnership Services Corporation Director, 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 Director, 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 Life Series Fund, Inc. Vice President-Investments
IDS Life Variable Annuity Funds A and B 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
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 Director and 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
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 and B Chairman of the Board of
Managers 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
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 and Senior Vice President--Corporate Strategy and Development
American Express Financial Advisors IDS Tower 10 Senior Vice President-
Minneapolis, MN 55440 Corporate Strategy and
Development
American Express Service Corporation Director
American Express Trust Company Director
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
American Express Tax and Business Director
Services Inc.
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
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 and Chairman of
the Board
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
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 Vice 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)
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
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 Fund Management Limited Director
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
<PAGE>
PAGE 22
Item 28. Business and Other Connections of Investment Adviser (American Express Financial
Corporation)(cont'd)
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
Peter J. Anderson Senior Vice President- Vice
IDS Tower 10 Investments President
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
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
<PAGE>
PAGE 24
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Timothy V. Bechtold Vice President-Risk None
IDS Tower 10 Management Products
Minneapolis, MN 55440
John D. Begley Group Vice President- None
Suite 100 Ohio/Indiana
7760 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
Suite 200 Greater Pennsylvania
3500 Market Street
Camp Hill, PA 17011
Alan F. Bignall Vice President- None
IDS Tower 10 Financial Planning
Minneapolis, MN 55440 Systems
Brent L. Bisson Group Vice President- None
Ste 900 e Westside Tower Los Angeles Metro
11835 West Olympic Blvd.
Los Angeles, CA 90064
John C. Boeder Vice President- None
IDS Tower 10 Mature Market Group
Minneapolis, MN 55440
Bruce J. Bordelon Group Vice President- None
Galleria One Suite 1900 Gulf States
Galleria Blvd.
Metairie, LA 70001
Charles R. Branch Group Vice President- None
Suite 200 Northwest
West 111 North River Dr
Spokane, WA 99201
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). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
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
IDS Tower 10 Field Management
Minneapolis, MN 55440
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
290 Woodcliff Drive Upstate New York
Fairport, NY 14450
Henry J. Cormier Group Vice President- None
Commerce Center One Connecticut
333 East River Drive
East Hartford, CT 06108
John M. Crawford Group Vice President- None
Suite 200 Arkansas/Springfield/Memphis
10800 Financial Ctr Pkwy
Little Rock, AR 72211
Kevin F. Crowe Group Vice President- None
Suite 312 Carolinas/Eastern Georgia
7300 Carmel Executive Pk
Charlotte, NC 28226
Alan R. Dakay Vice President- None
IDS Tower 10 Institutional Products
Minneapolis, MN 55440 Group
Regenia David Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
<PAGE>
PAGE 26
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Scott M. Digiammarino Group Vice President- None
Suite 500 Washington/Baltimore
8045 Leesburg Pike
Vienna, VA 22182
Bradford L. Drew Group Vice President- None
Two Datran Center Eastern Florida
Penthouse One B
9130 S. Dadeland Blvd.
Miami, FL 33156
William H. Dudley Director and Executive Director
IDS Tower 10 Vice President-
Minneapolis MN 55440 Investment Operations
Roger S. Edgar Senior Vice President None
IDS Tower 10 and Technology Advisor
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
One Old Mill Nebraska/Iowa/Dakotas
101 South 108th Avenue
Omaha, NE 68154
Louise P. Evenson Group Vice President- None
Suite 200 San Francisco Bay Area
1333 N. California Blvd.
Walnut Creek, CA 94596
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
<PAGE>
PAGE 27
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Douglas L. Forsberg Group Vice President- None
Suite 100 Portland/Eugene
7931 N. E. Halsey
Portland, OR 97213
William P. Fritz Group Vice President- None
Suite 160 Northern Missouri
12855 Flushing Meadows Dr
St. Louis, MO 63131
Carl W. Gans Group Vice President- None
8500 Tower Suite 1770 Twin City Metro
8500 Normandale Lake Blvd.
Bloomington, MN 55437
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
Suite 1736 Hawaii
1585 Kapiolani Blvd.
Honolulu, HI 96814
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Teresa A. Hanratty Group Vice President- None
Suites 6&7 Northern New England
169 South River Road
Bedford, NH 03110
John R. Hantz Group Vice President- None
Suite 107 Detroit Metro
17177 N. Laurel Park
Livonia, MI 48154
<PAGE>
PAGE 28
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Robert L. Harden Group Vice President- None
Two Constitution Plaza Boston Metro
Boston, MA 02129
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
Suite 250 North Texas
801 E. Campbell Road
Richardson, TX 75081
Raymond E. Hirsch Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
David J. Hockenberry Group Vice President- None
30 Burton Hills Blvd. Eastern Tennessee
Suite 175
Nashville, TN 37215
Kevin P. Howe Vice President- None
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations
David R. Hubers Chairman, Chief Director
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
James E. Kaarre Vice President- None
IDS Tower 10 Marketing Information
Minneapolis, MN 55440
<PAGE>
PAGE 29
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Linda B. Keene Vice President- None
IDS Tower 10 Market Development
Minneapolis, MN 55440
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
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
Ste 108 Trestle Bridge V Greater Michigan
5136 Lovers Lane
Kalamazoo, MI 49002
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
Suite 680 Chicago Metro
8585 Broadway
Merrillville, IN 48410
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
<PAGE>
PAGE 30
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
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- None
IDS Tower 10 Corporate Strategy and
Minneapolis, MN 55440 Development
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
Suite 650 Pittsburgh Metro
5700 Corporate Drive
Pittsburgh, PA 15237
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
<PAGE>
PAGE 31
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
James A. Mitchell Executive Vice President- None
IDS Tower 10 Marketing and Products
Minneapolis, MN 55440
John P. Moraites Group Vice President- None
Union Plaza Suite 900 Kansas/Oklahoma
3030 Northwest Expressway
Oklahoma City, OK 73112
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
Ronald E. Newton Group Vice President- None
319 Southbridge St. Rhode Island/Central
Auburn, MA 01501 Massachusetts
Thomas V. Nicolosi Group Vice President- None
Suite 220 New York Metro Area
500 Mamaronick Avenue
Harrison, NY 10528
James R. Palmer Vice President- None
IDS Tower 10 Taxes
Minneapolis, MN 55440
Carla P. Pavone Vice President- None
IDS Tower 10 Specialty Service Teams
Minneapolis, MN 55440 and Emerging Business
Susan B. Plimpton Vice President- None
IDS Tower 10 Segmentation Development
Minneapolis, MN 55440 and Support
Larry M. Post Group Vice President- None
One Tower Bridge Philadelphia Metro
100 Front Street 8th Fl
West Conshohocken, PA 19428
<PAGE>
PAGE 32
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
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 Geographical Service
Minneapolis, MN 55440 Teams
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
R. Daniel Richardson Group Vice President- None
Suite 800 Southern Texas
Arboretum Plaza One
9442 Capital of Texas Hwy N.
Austin, TX 78759
Roger B. Rogos Group Vice President- None
One Sarasota Tower Western Florida
Suite 700
Two N. Tamiami Trail
Sarasota, FL 34236
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
Suite 201 S IDS Ctr Wisconsin/Upper Michigan
1400 Lombardi Avenue
Green Bay, WI 54304
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
<PAGE>
PAGE 33
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Russell L. Scalfano Group Vice President- None
Suite 201 Exec Pk East Illinois/Indiana/Kentucky
101 Plaza East Blvd.
Evansville, IN 47715
William G. Scholz Group Vice President- None
Suite 205 Arizona/Las Vegas
7333 E Doubletree Ranch Rd
Scottsdale, AZ 85258
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
Julian W. Sloter Group Vice Presidnet- None
Ste 1700 Orlando FinCtr Orlando/Jacksonville
800 North Magnolia Ave.
Orlando, FL 32803
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
<PAGE>
PAGE 34
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Paul J. Stanislaw Group Vice President- None
Suite 1100 Southern California
Two Park Plaza
Irvine, CA 92714
Lois A. Stilwell Group Vice President- None
Suite 433 Outstate Minnesota Area/
9900 East Brn Road North Dakota/Western Wisconsin
Minnetonka, MN 55343
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
Suite 425 Seattle/Tacoma
101 Elliott Avenue West
Seattle, WA 98119
John R. Thomas Senior Vice President- Director
IDS Tower 10 Information and
Minneapolis, MN 55440 Technology
Melinda S. Urion Vice President and Treasurer
IDS Tower 10 Corporate Controller
Minneapolis, MN 55440
Peter S. Velardi Group Vice President- None
Suite 180 Atlanta/Birmingham
1200 Ashwood Parkway
Atlanta, GA 30338
Charles F. Wachendorfer Group Vice President- None
Suite 100 Denver/Salt Lake City/
Stanford Plaza II Albuquerque
7979 East Tufts Ave Pkwy
Denver, CO 80237
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
<PAGE>
PAGE 35
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Norman Weaver Jr. Senior Vice President- None
1010 Main St Suite 2B Field Management
Huntington Beach, CA 92648
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
Suite 200 Cambridge Ct Cleveland Metro
28601 Chagrin Blvd.
Woodmere, OH 44122
Eric S. Williams Group Vice President- None
Suite 250 Virginia
3951 Westerre Parkway
Richmond, VA 23233
Edwin M. Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Michael R. Woodward Senior Vice President- None
32 Ellicott St Ste 100 Field Management
Batavia, NY 14020
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.
<PAGE>
PAGE 36
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 68
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 1993, 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 25th day
of September, 1995.
IDS MONEY MARKET SERIES, INC.
By
Melinda S. Urion, Treasurer
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 25th day
of September, 1995.
Signature Capacity
/s/ William R. Pearce** President and
William R. Pearce Principal Executive
Officer and Director
/s/ Leslie L. Ogg** Vice President,
Leslie L. Ogg General Counsel
and Secretary
/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
<PAGE>
PAGE 69
Signature Capacity
/s/ Heinz F. Hutter* Director
Heinz F. Hutter
/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:
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:
Leslie L. Ogg
<PAGE>
CONTENTS OF THIS
POST-EFFECTIVE AMENDMENT NO. 44
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.
EXHIBIT INDEX
11. Independent Auditors Consent.
17. Financial Data Schedules.
<PAGE>
PAGE 1
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.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
September 25, 1995
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<TABLE> <S> <C>
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<PERIOD-START> MAR-20-1995
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 1878400128
<INVESTMENTS-AT-VALUE> 1878400128
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<OVERDISTRIBUTION-GAINS> 0
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<INTEREST-INCOME> 84566077
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (871329)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 145099672
<NUMBER-OF-SHARES-REDEEMED> (47855995)
<SHARES-REINVESTED> 804519
<NET-CHANGE-IN-ASSETS> 737520400
<ACCUMULATED-NII-PRIOR> 27818919
<ACCUMULATED-GAINS-PRIOR> 6546
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4733219
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 10800437
<AVERAGE-NET-ASSETS> 50065771
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.02)
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<EXPENSE-RATIO> 1.41
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
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<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-START> MAR-20-1995
<PERIOD-END> JUL-31-1995
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<INTEREST-INCOME> 84566077
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<EXPENSES-NET> (10800437)
<NET-INVESTMENT-INCOME> 73765640
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1445224)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 149989216
<NUMBER-OF-SHARES-REDEEMED> (65397125)
<SHARES-REINVESTED> 1211841
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