<PAGE>
PAGE 1
IDS Cash Management Fund
1995 annual report
(prospectus enclosed)
(Icon of) piggy bank
The goal of 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.
(This annual report includes a prospectus that describes in detail
the fund's objective, investment policies, risks, sales charges,
fees and other matters of interest. Please read the prospectus
carefully before you invest or send money.)
Distributed by
American Express
Financial Advisors Inc.<PAGE>
PAGE 2
A cache for cash
(Icon of) piggy bank
Keeping a portion of your investment portfolio in a cash reserve is
a cornerstome of a sound financial strategy. And a money market
mutual fund that stressese stability of your investment principal
and easy access when you need it is an excellent way to meet that
need. That's what Cash Management Fund is all about. For you,
that translates into peace of mind, plus a competitive return on
your money.<PAGE>
PAGE 3
Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the fund in detail.
1995 annual report
From the president 4
From the portfolio manager 4
Making the most of your fund 6
Independent auditors' report 7
Financial statements 8
Notes to financial statements 11
Investments in securities 15
IDS mutual funds 20
Federal income tax information 23
1995 prospectus
The fund in brief
Goal 3p
Types of fund investments 3p
Manager and distributor 3p
Portfolio manager 3p
Alternative sales arrangements 3p
Sales charge and fund expenses 4p
Performance
Financial highlights 6p
Yield 7p
Key terms 8p
Investment policies and risks
Facts about investments and their risks 9p
Alternative investment option 10p
Valuing assets 10p
How to buy, exchange or sell shares
Alternatie sales arrangements 11p
How to buy shares 13p
How to exchange shares 16p
How to sell shares 16p
Class B - contingent deferred sales
charge alternative 21p
Waivers of the sales charge for Class B shares 22p
Special shareholder services
Services 23p
Quick telephone reference 23p
<PAGE>
PAGE 4
Distributions and taxes
Dividend and capital gain distributions 24p
Reinvestments 24p
Taxes 24p
How the fund is organized
Shares 27p
Voting rights 27p
Shareholder meetings 27p
Directors and officers 27p
Investment manager and transfer agent 29p
Distributor 30p
About American Express Financial Corporation
General information 31p <PAGE>
PAGE 5
To our shareholders
(Photo of) William R. Pearce
President of the fund
(Photo of) Terry Fettig
Portfolio manager
From the president
As I indicated in the fund's previous reports, new agreements
between the fund and American Express Financial Corporation were
approved by shareholders in November 1994. The new agreements
became effective when the fund began offering multiple classes of
shares on March 20, 1995.
The advantage of offering more than a single class of shares is
that investors may choose how they wish to pay sales charges. A
portion of these charges compensates your American Express
financial advisor (formerly called your IDS planner), who is
committed to providing you with outstanding services.
Adding new classes of mutual find shares does make the presentation
of financial information in this report more complex. However, we
will continue our effort to make the reports easier to read and
understand. Meanwhile, your American Express financial advisor is
available to answer your questions.
William R. Pearce
From the portfolio manager
Ongoing economic growth fostered increases in short-term interest
rates during most of IDS Cash Management Fund's fiscal year (august
1994 through July 1995). Consistent with that trend, the fund's
yield also increased. For the seven-day period ended July 31,
1995, the fund's compound annualized yield was 5.33% for Class A
and Class Y and 4.55% for Class B, and the simple annualized yield
was 5.19% for Class A and Class Y shares and 4.44% for Class B. In
keeping with its objective, the fund maintained a stable $1 per
share price throughout the 12-month period.
A long run
The rise in short-term interest rates actually began in February
1994, when the Federal Reserve Board started raising rates with the
intention of slowing down the economy and, therefore, preventing an
increase in the rate of inflation. (The Fed adjusts short-term
rates based on the condition of the economy and the inflation
outlook. When the economy appears weak and inflation is low, the
Fed usually lowers rates to stimulate the economy. When the
economy appears to be expanding rapidly, the Fed usually pushes up
short-term interest rates to try to moderate economic growth and
keep inflation in check.) The Fed's efforts led to higher rates on
the securities in which the fund invests and, ultimately, to a
higher fund yield.
Trend reverses
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PAGE 6
The trend came to an end in January of this year, when the Fed
implemented its last rate hike. At that point, short-term interest
rates leveled off and subsequently marked time until July, when the
Fed, given evidence of slower economic growth and unthreatening
inflation news, reversed policy and pushed rates down slightly.
Because this fund's top priority is to provide a stable cash
investment for shareholders, I maintained my conservative
portfolio-management approach throughout the past fiscal year.
This means an exclusive focus on high-grade securities and only
subtle shifts in portfolio structure.
As we enter a new fiscal year, I expect the economy will continue
to expand at a modest pace in the months ahead while inflation
remains largely in check. In such a scenario, I think it's
probably that the Fed will either take a hands-off approach
regarding short-term rates or nudge them down a bit more. Should
that prove true, the fund's current yield would stay essentially
the same or decline only slightly reflecting the marketplace.
Terry Fettig
Class A
12-month performance
(All figures per share)
Net asset value (NAV)
July 31, 1995 $1.00
July 31, 1994 $1.00
Increase $ --
Distributions
Aug. 1, 1994-July 31, 1995
From income $0.049
From capital gains $ --
Total distributions $0.049
Total return** +5.0%***
Class B
March 20, 1995-July 31, 1995
(All figures per share)
Net asset value (NAV)
July 31, 1995 $1.00
March 20, 1995* $1.00
Increase $ --
Distributions
March 20, 1995*-July 31, 1995
From income $0.020
From capital gains $ --
Total distributions $0.020
Total return** +2.0%***
<PAGE>
PAGE 7
Class Y
March 20, 1995-July 31, 1995
(All figures per share)
Net asset value (NAV)
July 31, 1995 $1.00
March 20, 1995* $1.00
Increase $ --
Distributions
March 20, 1995*-July 31, 1995
From income $0.023
From capital gains $ --
Total distributions $0.023
Total return** +2.3%***
* Inception date.
** The prospectus discusses the effects of sales charges, if any,
on the various classes.
***The total return is a hypothetical investment in the fund with
all distributions reinvested.
<PAGE>
PAGE 8
Making the most of your fund
Average annual total return
(as of July 31, 1995)
Class A
1 year 5 years 10 years
+5.02% +4.09% +5.65%
Total returns for Class A, Class B and Class Y for the period from
March 20, 1995 to July 31, 1995 were 2.29%, 2.00% and 2.30%,
respectively. March 20, 1995 was the inception date for Class B
and Class Y. Total return for Class A is shown for comparative
purposes. The performance of Class B will vary from the
performance of Class A based on differences in sales charges and
fees.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 9
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 10
<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 11
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 12
<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 5,083,998,091 3,450,597,013
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 1,153,600,779 1,053,010,696
_____________________________________________________________________________________________________________
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 13
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 14
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.
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PAGE 15
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 16
<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 17
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 18
_____________________________________________________________________________________________________________________________
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 19
_____________________________________________________________________________________________________________________________
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 20
_____________________________________________________________________________________________________________________________
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
<PAGE>
PAGE 21
_____________________________________________________________________________________________________________________________
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
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
<PAGE>
PAGE 22
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 23
_____________________________________________________________________________________________________________________________
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 24
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories, or the equivalent, and in
government bonds.
(icon of) greek column
<PAGE>
PAGE 25
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the
timely payment of principal and interest by the U.S. government,
its agencies and instrumentalities. Seeks a high level of current
income and safety of principal consistent with its type of
investments.
(icon of) federal building
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
<PAGE>
PAGE 26
Growth and income investments
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20% of
its assets in the U.S. market.
(icon of) three flags
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stock of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
<PAGE>
PAGE 27
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high
current income and, secondarily, to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale
Growth investments
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
<PAGE>
PAGE 28
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth potential
due to superiority in technology, marketing or management. The
fund frequently changes its industry mix.
(icon of) prism
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial advisor or writing to American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.<PAGE>
PAGE 29
Federal income tax information
IDS Cash Management Fund
___________________________________________________________________
The fund is required by the Internal Revenue Code of
1986 to tell its shareholders about the tax treatment
of the dividends it pays during its fiscal year.
Some of the dividends listed below were reported to
you on a Form 1099-DIV, Dividends and Distributions,
last January. Dividends paid to you since the end of
last year will be reported to you on a tax statement
sent in January. Shareholders should consult a tax
advisor on how to report distributions for state and
local purposes.
IDS Cash Management Fund
Fiscal year ended July 31, 1995
Class A
Income distributions -- taxable as dividend income,
none qualifying for deduction by corporations.
Payable date Per share
Aug. 29, 1994 $0.00310
Sept. 28, 1994 0.00343
Oct. 27, 1994 0.00328
Nov. 29, 1994 0.00398
Dec. 29, 1994 0.00413
Jan. 26, 1995 0.00402
Feb. 24, 1995 0.00427
March 29, 1995 0.00494
April 27, 1995 0.00437
May 26, 1995 0.00437
June 27, 1995 0.00479
July 27, 1995 0.00444
Total distributions $0.04912
Class B
Income distributions -- taxable as dividend income,
none qualifying for deduction by corporations.
Payable date Per share
March 29, 1995 $0.00483
April 27, 1995 0.00378
May 26, 1995 0.00378
June 27, 1995 0.00414
July 27, 1995 0.00382
Total distributions $0.02035
<PAGE>
PAGE 30
Class Y
Income distributions -- taxable as dividend income,
none qualifying for deduction by corporations.
Payable date Per share
March 29, 1995 $0.00494
April 27, 1995 0.00437
May 26, 1995 0.00437
June 27, 1995 0.00479
July 27, 1995 0.00444
Total distributions $0.02291
<PAGE>
PAGE 31
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
AMERICAN
EXPRESS
FINANCIAL
ADVISORS
IDS CASH MANAGEMENT FUND
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 32
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in blue strip at the top
of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
