IDS
Cash
Management
Fund
1995 semiannual report
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.
Distributed by
American Express
Financial Advisors Inc.
A cache for cash
Keeping a portion of your investment portfolio in a cash reserve is a
cornerstone of a sound financial strategy. And a money market mutual fund that
stresses 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.
Contents
From the president 3
From the portfolio manager 3
Financial statements 5
Notes to financial statements 8
Investments in securities 12
Directors and officers 16
IDS mutual funds 17
To our shareholders
William R. Pearce
President of the fund
Terry Fettig
Portfolio manager
From the president
All of the funds in the IDS MUTUAL FUND GROUP held shareholder meetings on Nov.
9, 1994. The meetings, which were well-attended, approved all of the proposals
advanced by management. Among the proposals were:
The election of directors and the selection of KPMG Peat Marwick LLP as
independent auditors for each of the funds in the group.
A new investment management agreement that will become effective for each fund
when it begins offering multiple classes of shares, now planned to occur in
March 1995.
A change in investment policy that will permit the fund to adopt a
master/feeder structure if and when the board of each fund determines that it
is in the best interest of shareholders.
As a result of the approved proposals, this fund's operating expenses were
reduced, which should enhance the return to shareholders.
No other business was presented at the meeting, which was concluded by a report
to shareholders from the American Express Financial Corporation Investment
Department.
Thanks to all of you for your effort in reviewing the proxy material and voting
your proxies.
William R. Pearce
From the portfolio manager
Ongoing economic growth fostered further increases in short-term interest rates
during the first half of Cash Management Fund's
fiscal year (August 1994 through January 1995). Consistent with that trend, the
fund's yield also increased. For the seven-day period ended Jan. 31, 1995, the
fund's compound annualized yield was 5.43%, and the simple annualized yield was
5.29%. In keeping with its objective, the fund maintained a
stable $1 per share price throughout the six-month period.*
A long run
The extended rise in short-term interest rates actually began in February 1994,
when the Federal Reserve Board started raising rates with the intent of slowing
down the economy and, therefore, preventing a rapid 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.) During
the 12 months from February 1994 through January 1995, the Fed raised short-
term rates seven times. The Fed's efforts have led to higher rates on the
securities in which the fund invests and, ultimately, to a higher fund yield.
Because this fund's top priority is to provide a
stable cash investment for shareholders, we maintained our conservative
portfolio-management approach. This means an exclusive focus on high-grade
securities and only subtle shifts in portfolio structure.
Trend expected
to continue
As we enter the second half of the fiscal year, it appears that the Fed will
continue its inflation-fighting policy for at least the near term. If that
proves true, we expect short-term rates will continue to rise, boosting the
fund's yield.
Given that forecast, we plan to stick with our recent approach of keeping the
portfolio's average maturity level (the length of time before securities'
principal payments are due) relatively short, probably not more than 40 days.
As has been the case for some months, this will allow the fund to quickly take
advantage of higher-yielding securities should interest rates continue to
increase. However, that will not change our fundamental focus on providing a
stable net asset value for shareholders who employ this fund as a ready cash
reserve.
Terry Fettig
*Although the fund seeks to
maintain a stable $1 share price, there is no assurance that it will be able to
do so. An investment in the
fund is neither insured
nor guaranteed by the
U.S. government.
6-month performance
(All figures per share)
Net asset value (NAV)
Jan. 31, 1995 $1.00
July 31, 1994 $1.00
Increase $ --
Distributions
Aug. 1, 1994 - Jan. 31, 1995
From income $0.02
From capital gains $ --
Total distributions $0.02
Total return +2.2%<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Cash Management Fund
Jan. 31, 1995
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,537,164,687) $1,537,164,687
Accrued interest receivable 1,116,258
_____________________________________________________________________________________________________________
Total assets 1,538,280,945
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 18,404,926
Dividends payable to shareholders 1,315,952
Accrued investment management and services fee 433,301
Accrued distribution fee 103,808
Accrued transfer agency fee 342,049
Other accrued expenses 251,626
_____________________________________________________________________________________________________________
Total liabilities 20,851,662
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,517,429,283
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 1,517,508,259 shares $ 15,175,083
Additional paid-in capital 1,502,284,783
Undistributed net investment income 654
Accumulated net realized loss (31,237)
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $1,517,429,283
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 1.00
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.<PAGE>
PAGE
Statement of operations
IDS Cash Management Fund
Six months ended Jan. 31, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Interest $34,642,054
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 2,206,034
Distribution fee 577,634
Transfer agency fee 1,905,060
Compensation of directors 4,426
Compensation of officers 393
Custodian fees 56,043
Postage 275,687
Registration fees 88,054
Reports to shareholders 74,257
Audit fees 14,000
Administrative 2,746
Other 11,659
_____________________________________________________________________________________________________________
Total expenses 5,215,993
_____________________________________________________________________________________________________________
Investment income -- net 29,426,061
_____________________________________________________________________________________________________________
Realized loss -- net
_____________________________________________________________________________________________________________
Net realized loss (Note 3) (308)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $29,425,753
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
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<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Cash Management Fund
_____________________________________________________________________________________________________________
Operations and distributions Jan. 31, 1995 July 31, 1994
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 29,426,061 $ 27,818,919
Net realized gain (loss) (308) 6,546
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 29,425,753 27,825,465
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (29,425,617) (27,818,831)
_____________________________________________________________________________________________________________
Capital share transactions at constant $1 net asset value
_____________________________________________________________________________________________________________
Proceeds from sales 2,372,189,279 3,450,597,013
Net asset value of shares issued in
reinvestment of distributions 27,493,469 26,872,301
Payments for redemptions of shares (2,035,854,380) (3,376,885,865)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 363,828,368 100,583,449
_____________________________________________________________________________________________________________
Total increase in net assets 363,828,504 100,590,083
Net assets at beginning of period 1,153,600,779 1,053,010,696
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of $654
and $210) $1,517,429,283 $1,153,600,779
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
Notes to Financial Statements
IDS Cash Management Fund
(Unaudited as to Jan. 31, 1995)
___________________________________________________________________________
1. Summary of significant accounting policies
The fund is a series of IDS Money Market Series, Inc. and is registered
under the Investment Company Act of 1940 (the 1940 Act), as amended, as a
diversified, open-end management investment company. Significant accounting
policies followed by the fund are summarized below:
Valuation of securities
Pursuant to Rule 2a-7 of the 1940 Act, all securities are valued daily at
amortized cost, which approximates market value, in order to maintain a
constant net asset value of $1 per share.
Federal taxes
Since the fund's policy is to comply with all sections of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income to shareholders, no provision for income or
excise taxes is required.
Dividends to shareholders
Dividends from net investment income, declared daily and payable monthly,
are reinvested in additional shares of the fund at net asset value or
payable in cash.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Interest income, including amortization of premium and
discount, is accrued daily.
___________________________________________________________________________
2. Expenses
Under terms of an agreement dated Nov. 14, 1991, the fund pays American
Express Financial Corporation a fee for managing its investments,
recordkeeping and other specified services. The fee is a percentage of the
fund's average daily net assets consisting of an annual asset charge
reducing percentages from 0.34% to 0.26% annually.
<PAGE>
PAGE
The fund also pays American Express Financial Corporation 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 is reduced by earnings on monies pending shareholder redemptions.
American Express Financial Corporation will assume and pay any expenses
(except taxes and brokerage commissions) that exceed the most restrictive
applicable state expense limitation.
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 $5,164 for the six months
ended Jan. 31, 1995.
___________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities aggregated
$5,079,834,750 and $4,696,750,755, respectively, for the six months ended
Jan. 31, 1995. Realized gains and losses are determined on an identified
cost basis.
<PAGE>
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<TABLE>
<CAPTION>
4. Financial highlights
The table below shows certain important financial
information for evaluating the fund's results.
Fiscal period ended July 31,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
beginning of period
Income from investment operations:
Net investment income .02 .03 .02 .04 .07 .08
Less distributions:
Dividends from net (.02) (.03) (.02) (.04) (.07) (.08)
investment income
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
end of period
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
Net assets, end of period $1,517 $1,154 $1,053 $1,230 $1,655 $1,617
(in millions)
Ratio of expenses to .79%*** .94%+ .94%+ .91% .77% .74%
average daily net assets
Ratio of net income to 4.47%*** 2.61% 2.36% 3.84% 6.55% 7.81%
average daily net assets
Total return 2.2%++ 2.6% 2.4% 3.8% 6.7% 7.9%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Jan. 31, 1995 (Unaudited).
***Adjusted to an annual basis.
+During the fiscal years ended July 31, 1993 and July 31, 1994, American Express
Financial Corporation voluntarily reimbursed the fund for a portion of its expenses.
Had American Express Financial Corporation not done so, the ratio of expenses to
average daily net assets would have been 0.97%.
++For the fiscal period ended Jan. 31, 1995, the annualized total return is 4.4%.
</TABLE>
<PAGE>
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<TABLE>
<CAPTION>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
Jan. 31, 1995 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (1.5%)
Federal Natl Mtge Assn
02-08-95 5.64% $12,300,000 $ 12,286,535
06-01-95 5.94 10,000,000 (c) 10,000,000
_____________________________________________________________________________________________________________________________
Total U.S. government agency
(Cost: $22,286,535) 22,286,535
_____________________________________________________________________________________________________________________________
Certificates of deposit (5.0%)
Domestic
ABN AMRO Yankee
04-28-95 6.22 15,000,000 14,997,205
Harris Trust
02-10-95 5.76 15,000,000 14,999,776
Natl Detroit
02-22-95 5.84 5,300,000 5,300,031
Societe Generale Yankee
02-03-95 6.15 20,000,000 20,000,000
03-27-95 6.10 20,000,000 20,000,000
_____________________________________________________________________________________________________________________________
Total certificates of deposit
(Cost: $75,297,012) 75,297,012
_____________________________________________________________________________________________________________________________
Commercial paper (69.5%)
Automotive & related (0.9%)
Ford Motor Credit
02-03-95 6.10 13,200,000 13,195,563
_____________________________________________________________________________________________________________________________
Banks and savings & loans (11.2%)
BBV Finance Delaware
02-24-95 5.91 20,000,000 19,924,867
02-27-95 5.93 10,000,000 9,957,389
02-27-95 5.96 5,600,000 5,576,037
04-04-95 6.33 20,100,000 19,884,338
04-04-95 6.35 21,200,000 20,971,805
Commerzbank US Finance
02-06-95 6.14 18,000,000 17,984,825
02-21-95 6.08 12,000,000 11,960,000
02-24-95 5.93 15,100,000 15,043,081
Kredietbank
North Amer Finance
02-28-95 5.97 5,600,000 5,575,304
03-31-95 6.22 6,000,000 5,940,743
Lilly (Eli)
02-06-95 5.95 7,474,000 7,467,875
04-11-95 6.25 10,000,000 (b) 9,882,125
See accompanying notes to investments in securities.<PAGE>
PAGE
Natl Bank Detroit
02-28-95 5.95 7,000,000 6,999,452
Natl Bank Detroit
Canada
02-27-95 5.87 4,600,000 4,580,598
Societe Generale North Amer
04-10-95 6.19 8,100,000 8,006,670
_____________
Total 169,755,109
_____________________________________________________________________________________________________________________________
Computers & office equipment (0.6%)
Pitney Bowes
Credit
02-06-95 5.92 9,900,000 9,891,929
_____________________________________________________________________________________________________________________________
Electronics (0.4%)
Siemens
02-09-95 6.10 6,600,000 6,591,127
_____________________________________________________________________________________________________________________________
Energy (3.9%)
BOC Group
02-07-95 5.83 16,900,000 16,883,579
02-13-95 5.98 6,900,000 6,886,269
Chevron Transport
02-08-95 6.15 15,000,000 (b) 14,982,267
02-13-95 5.71 20,000,000 (b) 19,962,133
_____________
Total 58,714,248
_____________________________________________________________________________________________________________________________
Financial services (31.5%)
Amer General
02-17-95 5.89 7,100,000 7,081,540
Amer General
Investment
03-21-95 6.01 8,600,000 (b) 8,531,773
03-22-95 6.06 14,000,000 (b) 13,885,667
Associates
North Amer
03-13-95 6.03 8,000,000 7,946,844
Avco Financial
03-27-95 6.08 10,000,000 9,909,700
Beneficial
02-07-95 6.08 6,100,000 6,093,819
02-22-95 5.85 10,000,000 9,966,050
03-02-95 6.06 6,400,000 6,368,912
01-23-96 6.16 10,000,000 (c) 10,000,000
Cargill Financial Markets
02-16-95 5.82 10,000,000 (b) 9,975,833
03-06-95 6.27 4,900,000 (b) 4,873,050
CIT Group Holdings
02-03-95 5.87 7,000,000 6,997,729
02-17-95 5.75 17,000,000 16,956,782
03-06-95 6.27 7,000,000 6,960,409
Commercial Credit
02-13-95 5.68 10,300,000 10,280,602
02-14-95 5.68 15,000,000 14,969,396
02-17-95 5.75 11,000,000 10,972,036<PAGE>
PAGE
Corporate Asset
Funding
02-03-95 5.90 14,900,000 14,895,141
02-09-95 6.13 17,000,000 16,977,069
Dresdner U.S. Finance
02-27-95 5.90 23,100,000 23,002,069
02-28-95 5.90 9,300,000 9,259,057
Eiger Capital
02-21-95 5.85 24,400,000 (b) 24,321,107
Exxon Asset Management
02-06-65 5.56 7,700,000 7,694,065
Fleet Funding
04-03-95 6.06 9,000,000 (b) 8,908,805
General Electric
Capital
03-14-95 5.91 8,000,000 7,946,609
04-17-95 6.11 10,000,000 9,875,833
Goldman Sachs
Group LP
02-01-95 6.01 10,500,000 10,500,000
02-02-95 6.01 12,700,000 12,697,901
Household Finance
02-10-95 5.76 14,800,000 14,778,799
Merrill Lynch
02-10-95 6.16 9,500,000 9,485,512
02-21-95 5.86 5,000,000 4,983,806
03-07-95 5.97 9,800,000 9,745,207
03-14-95 5.96 10,000,000 9,932,806
04-12-95 6.19 15,000,000 14,822,083
04-13-95 6.19 15,000,000 14,819,542
04-28-95 6.019 10,000,000 (c) 10,000,000
Mobil Australia Finance
Delaware
02-07-95 5.75 17,800,000 (b) 17,783,031
02-14-95 5.85 13,784,000 (b) 13,755,031
Morgan Guaranty
05-10-95 6.00 10,000,000 (c) 9,998,389
Morgan Stanley
Group
05-17-95 6.25 5,000,000 (c) 5,000,662
Paccar Financial
03-10-95 6.18 6,600,000 6,558,622
SBT Funding
02-02-95 5.93 6,553,000 (b) 6,551,932
Toyota Motor Credit
03-13-95 6.02 5,000,000 4,966,889
Unilever Capital
03-27-95 6.15 9,100,000 9,017,144
USAA Capital
02-08-95 6.19 3,300,000 3,296,067
04-03-95 6.29 4,900,000 4,848,523
______________
Total 478,191,843
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
_____________________________________________________________________________________________________________________________
Food (1.8%)
Cargill
03-03-95 6.26 7,900,000 7,859,381
CPC Intl
02-21-95 5.91 5,000,000 (b) 4,983,833
PepsiCo
03-01-95 5.98 9,300,000 9,256,962
Sara Lee
03-02-95 6.11 6,000,000 5,970,903
______________
Total 28,071,079
_____________________________________________________________________________________________________________________________
Health care (4.0%)
Amgen
02-07-95 6.16 24,900,000 24,874,685
03-17-95 6.06 9,200,000 9,132,533
Sandoz
02-01-95 6.04 12,000,000 12,000,000
02-08-95 5.78 7,000,000 6,992,174
02-28-95 5.90 7,900,000 7,865,220
______________
Total 60,864,612
_____________________________________________________________________________________________________________________________
Industrial transportation (1.2%)
Consolidated Rail
02-14-95 5.85 11,900,000 (b) 11,875,205
Norfolk Southern
02-13-95 5.84 7,000,000 (b) 6,986,560
______________
Total 18,861,765
_____________________________________________________________________________________________________________________________
Insurance (3.2%)
Aon
03-01-95 5.90 8,900,000 8,859,367
Lincoln Natl
02-13-95 5.68 5,800,000 (b) 5,789,077
02-16-95 5.76 10,000,000 (b) 9,976,125
02-23-95 5.86 8,500,000 (b) 8,469,716
SAFECO Credit
02-02-95 5.54 11,000,000 10,998,335
St. Paul Companies
02-03-95 5.84 4,400,000 (b) 4,398,580
______________
Total 48,491,200
_____________________________________________________________________________________________________________________________
Media (1.9%)
Dun & Bradstreet
03-07-95 6.26 10,000,000 9,941,728
Reed Elsevier
03-20-95 6.18 19,000,000 (b) 18,848,686
______________
Total 28,790,414
_____________________________________________________________________________________________________________________________
Utilities - electric (2.2%)
Bayshore Fuel
02-17-95 5.88 16,907,000 16,863,042
<PAGE>
PAGE
Gateway Fuel
02-07-95 6.14 8,245,000 8,236,645
04-03-95 6.05 8,027,000 7,945,800
______________
Total 33,045,487
______________________________________________________________________________________________________________________________
Utilities - gas (2.6%)
Southern California Gas
02-01-95 5.77 7,148,000 (b) 7,148,000
02-02-95 5.77 6,647,000 (b) 6,645,938
02-09-95 5.75 15,071,000 (b) 15,051,843
02-16-95 5.88 10,149,000 10,124,473
______________
Total 38,970,254
_____________________________________________________________________________________________________________________________
Utilities - telephone (4.1%)
AT&T
02-07-95 5.87 10,000,000 9,990,333
Bell South Capital Funding
04-05-95 6.33 6,900,000 6,824,773
Southwestern Bell Capital
02-21-95 6.15 5,800,000 (b) 5,780,409
03-10-95 6.00 15,000,000 (b) 14,908,425
US WEST Communications
02-08-95 6.10 12,000,000 11,985,883
04-12-95 6.09 13,000,000 12,848,333
______________
Total 62,338,156
_____________________________________________________________________________________________________________________________
Total commercial paper
(Cost: $1,055,772,786) 1,055,772,786
_____________________________________________________________________________________________________________________________
Letters of credit (25.3%)
ABN Amro-
Sci Systems
02-22-95 5.85 7,200,000 7,175,556
ABN Amro-
U.S. Prime Properties
02-13-95 5.72 8,500,000 8,483,850
02-24-95 5.93 9,000,000 8,966,075
Bank of Amer-
AES Barbers Point
02-17-95 5.86 8,300,000 8,278,494
03-23-95 6.07 15,000,000 14,874,999
Bank of Amer-
Hyundai Motor Finance
02-10-95 5.70 18,000,000 17,974,485
02-10-95 5.78 8,300,000 8,288,069
Banque Paribas-
Cogentrix of Richmond
02-10-95 5.78 10,000,000 9,985,625
03-10-95 5.92 10,500,000 10,436,653
03-10-95 5.93 7,807,000 7,759,820
04-04-95 6.23 15,000,000 14,841,125
Banque Parabas-
James River Cogeneration
02-15-95 5.71 13,020,000 12,991,240
<PAGE>
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Banque Paribas-
Southeast Paper
Manufacturing
02-07-95 5.90 9,000,000 8,991,150
03-07-95 6.11 9,300,000 9,246,861
Barclays Bank-
Banco Real
04-14-95 6.24 13,000,000 12,840,100
04-20-95 6.25 20,000,000 19,733,500
Barclays Bank-
Centerior Fuel
02-17-95 5.92 10,007,000 9,980,759
Barclays Bank-
Corporacion Andina De Forento
02-17-95 6.16 8,400,000 8,377,226
04-25-95 6.32 9,000,000 8,870,935
Barclays Bank-
FPL Fuels
02-21-95 6.15 6,500,000 6,477,972
Canadian Imperial Bank-
Commed Fuel
02-02-95 6.19 5,074,000 5,073,137
02-06-95 6.17 13,240,000 13,228,783
03-06-95 6.17 11,821,000 11,755,443
03-20-95 6.04 12,221,000 12,125,588
Credit Agricole-
Louis Dreyfus Series B
02-24-95 5.93 12,000,000 11,954,767
Credit Suisse-
MP Funding
02-27-95 6.03 10,528,000 10,482,378
Credit Suisse-
Pemex Capital
02-09-95 5.83 10,000,000 9,987,111
03-02-95 6.08 15,000,000 14,926,896
03-23-95 6.09 9,000,000 8,924,625
04-20-95 6.25 15,000,000 14,800,125
Credit Suisse-
Sunkyong Amer
03-02-95 6.27 7,000,000 6,965,152
First Chicago-
Commed Fuel
02-03-95 6.19 7,007,000 7,004,614
03-03-95 6.06 11,815,000 11,755,630
Toronto Dominion Bank-
Franciscan Services
02-16-95 5.70 10,100,000 10,076,139
Union Bank Switzerland-
MLTC Funding
03-13-95 6.11 20,310,000 20,173,472
_____________________________________________________________________________________________________________________________
Total letters of credit
(Cost: $383,808,354) 383,808,354
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,537,164,687)(d) $1,537,164,687
_____________________________________________________________________________________________________________________________<PAGE>
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_____________________________________________________________________________________________________________________________
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 Jan. 31, 1995.
(d) Also represents the approximate cost of securities for federal income tax purposes at Jan. 31, 1995.
/TABLE
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Directors and officers
Directors and officers of the fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
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 American
Express Financial Corporation.
William H. Dudley
Executive vice president, American Express Financial Corporation.
David R. Hubers
President and chief executive officer, American Express Financial
Corporation.
John R. Thomas
Senior vice president, American Express Financial Corporation.
_____________________________________________________________________
Other officer
Leslie L. Ogg
Vice president of all funds in the IDS MUTUAL FUND GROUP and general
counsel and treasurer of the publicly offered funds.<PAGE>
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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 deposit (CDs) and
other bank securities.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.)
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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.
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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.
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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.
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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.
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IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of
capital and income.
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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.
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IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
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IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
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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.
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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.
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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.
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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.
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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
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.
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IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
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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.
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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.
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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 (TouchTone 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
