1996 SEMIANNUAL REPORT
IDS Cash Management Fund
(icon of) piggy bank
The goal if IDS Cash Management Fund, a part of IDS Money Market Series,
Inc., is to provide a maximum current income consistent with liquidity and
stability of principal. The Fund invests in money market securities.
AMERICAN EXPRESS
Financial Advisors
Distributed by American Express Financial Advisors Inc.
<PAGE>
(icon of) piggy bank
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 16
Board members and officers 20
IDS mutual funds 21
<PAGE>
To our shareholders
From the president
If You're an experienced investor, you know that 1995 was an unusually
strong year for the U.S. financial markets. Perhaps just as important, you
also know that history shows that bull markets don't last forever. Though
they're often unpredictable, declines - whether they're brief or long-
lasting, moderate or substantial - are always a possibility.
That fact reinforces the need for investors to review periodically their
long-term goals and assess whether their investment program remains on
track to achieving them. Your quarterly investment statements are one part
of that monitoring process. The other is a meeting with your American
Express financial advisor. That becomes even more important if there's a
major change in your financial situation or in the financial markets.
William R. Pearce
From the portfolio manager
IDS Cash Management Fund's yield fell slightly during the first half of its
fiscal year (August 1995 through January 1996), tracking a decline in
short-term interest rates that began last summer. For the seven-day period
ended Jan. 31, 1996, the Fund's compound annualized yield was 5.10%, and
the simple annualized yield was 4.99%. In keeping with its objective, the
Fund maintained a stable $1 per share price throughout the six-month
period. (Although the Fund seeks to maintain a stable $1 share price, there
is no assurance that is will be able to do so. An investment in the Fund is
neither insured nor guaranteed by the U.S. government.)
The decline in interest rates reversed a trend that had been in place since
early 1994, when the Federal Reserve Board began raising short-term rates
to temper economic growth and head off a potential run-up in the inflation
rate. (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 economic
growth. When the economy is strong, the Fed usually raises rates to
moderate economic growth and thereby keep inflation in check.) The last of
several rate increases came in January of 1995.
Fed changes course
By July, with evidence that economic growth was moderating while inflation
was remaining under control, the Fed reversed policy and reduced short-term
rates a bit. Two more of these so-called "easing" moves were to follow -
one in December and one in January of this year.
While the effect was not dramatic, the rate reductions did lead to lower
rates on the securities this Fund invests in and, ultimately, to a somewhat
lower Fund yield. To counter that effect, we emphasized investments in
securities with longer maturities. By last fall, the average maturity of
the portfolio had reached approximately 45 days, compared with
approximately 42 days at the beginning of the fiscal year.
Yields likely to decline again
However, this strategy did not alter our top priority of providing a stable
cash investment for shareholders. Therefore, we maintained our conservative
portfolio-management approach, which results in an exclusive focus on high-
grade securities and only subtle shifts in portfolio structure.
For the second half of the fiscal year, we look for the economy to continue
to grow at a modest pace while inflation remains unthreatening. In such a
scenario, we think the Federal Reserve will keep to its policy of reducing
short-term rates. If that proves true, we plan to maintain a longer-than-
average portfolio maturity to counteract the likelihood of declining
security yields.
Terry Fettig
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
Jan. 31, 1996 $ 1.00
____________________________
July 31, 1995 $ 1.00
____________________________
Increase $ --
____________________________
Distributions
Aug. 1, 1995-Jan. 31, 1996
____________________________
From income $ 0.03
____________________________
From capital gains $ --
____________________________
Total distributions $ 0.03
____________________________
Total return* +2.6%**
____________________________
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
Jan. 31, 1996 $ 1.00
____________________________
July 31, 1995 $ 1.00
____________________________
Increase $ --
____________________________
Distributions
Aug. 1, 1995-Jan. 31, 1996
____________________________
From income $ 0.02
____________________________
From capital gains $ --
____________________________
Total distributions $ 0.02
____________________________
Total return* +2.2%**
____________________________
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
Jan. 31, 1996 $ 1.00
____________________________
July 31, 1995 $ 1.00
____________________________
Increase $ --
____________________________
Distributions
Aug. 31, 1995-Jan. 31, 1996
____________________________
From income $ 0.03
____________________________
From capital gains $ --
____________________________
Total distributions $ 0.03
____________________________
Total return* +2.6%**
____________________________
*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
<TABLE>
<CAPTION>
Statement of assets and liabilities
IDS Cash Management Fund
Jan. 31, 1996
______________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $2,179,774,484) $2,179,774,484
Accrued interest receivable 2,120,036
_____________________________________________________________________________________________________________
Total assets 2,181,894,520
_____________________________________________________________________________________________________________
Liabilities
____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 21,480,990
Dividends payable to shareholders 1,720,233
Accrued investment management services fee 35,080
Accrued distribution fee 7,565
Accrued transfer agency fee 27,364
Accrued administrative services fee 3,284
Other accrued expenses 266,284
_____________________________________________________________________________________________________________
Total liabilities 23,540,800
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $2,158,353,720
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 21,584,454
Additional paid-in capital 2,136,802,175
Undistributed net investment income 249
Accumulated net realized loss (Note 1) (33,158)
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $2,158,353,720
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $1,908,072,485
Class B $ 187,765,486
Class Y $ 62,515,749
Net asset value per share of outstanding capital stock: Class A shares 1,908,130,742 $ 1.00
Class B shares 187,788,487 $ 1.00
Class Y shares 62,526,183 $ 1.00
See accompanying notes to financial statements. <PAGE>
PAGE
Financial statements
Statement of operations
IDS Cash Management Fund
Six months ended Jan. 31, 1996
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Interest $59,131,166
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 3,020,015
Distribution fee - Class B 558,055
Transfer agency fee 2,418,009
Incremental transfer agency fee - Class B 4,612
Administrative services fee 284,238
Compensation of board members 3,707
Compensation of officers 8,166
Custodian fees 72,848
Postage 228,607
Registration fees 173,148
Reports to shareholders 108,198
Audit fees 15,625
Administrative 7,011
Other 12,319
_____________________________________________________________________________________________________________
Total expenses 6,914,558
_____________________________________________________________________________________________________________
Investment income -- net 52,216,608
_____________________________________________________________________________________________________________
Realized loss -- net
_____________________________________________________________________________________________________________
Net realized loss (Note 3) (2,006)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $52,214,602
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Cash Management Fund
_____________________________________________________________________________________________________________
Operations and distributions Jan. 31, 1996 July 31, 1995
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income -- net $ 52,216,608 $ 73,765,640
Net realized gain (loss) (2,006) 755
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 52,214,602 73,766,395
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (47,129,154) (71,448,349)
Class B (3,270,395) (871,329)
Class Y (1,817,758) (1,445,224)
_____________________________________________________________________________________________________________
Total distributions (52,217,307) (73,764,902)
_____________________________________________________________________________________________________________
Capital share transactions at constant $1 net asset value
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares 2,964,989,957 5,083,998,091
Class B shares 230,554,362 145,099,672
Class Y shares 72,656,964 149,989,216
Fund merger (Note 4)
Class A shares -- 12,051,967
Reinvestment of distributions at net asset value
Class A shares 45,755,789 68,543,809
Class B shares 3,171,849 804,519
Class Y shares 1,627,483 1,211,841
Payments for redemptions
Class A shares (2,809,961,704) (4,610,927,088)
Class B shares (Note 2) (143,997,256) (47,855,995)
Class Y shares (97,562,198) (65,397,125)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 267,235,246 737,518,907
_____________________________________________________________________________________________________________
Total increase in net assets 267,232,541 737,520,400
Net assets at beginning of period 1,891,121,179 1,153,600,779
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$249 and $948) $2,158,353,720 $1,891,121,179
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
Notes to Financial Statements
IDS Cash Management Fund
(Unaudited as to Jan. 31, 1996)
__________________________________________________________________________
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 invests in money market
securities. 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.
Class B 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:
Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
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.
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 and sales charges
Effective March 20, 1995, when the Fund began offering multiple classes of
shares, the Fund entered into agreements with American Express Financial
Corporation (AEFC) for managing its 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 $181,781 for the six months ended Jan. 31, 1996.
The Fund has a retirement plan for its independent board members. Upon
retirement, board members receive monthly payments equal to one-half of
the retainer fee for as many months as they served as board members 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 board members serve
on the board. The retirement plan expense amounted to $4,860 for the six
months ended Jan. 31, 1996.
__________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities aggregated
$7,138,325,756 and $6,836,949,394, respectively, for the six months ended
Jan. 31, 1996. Realized gains and losses are determined on an identified
cost basis.
__________________________________________________________________________
4. Fund merger
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.
<PAGE>
IDS Cash Management Fund
______________________________________________________________________________
5. 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*
Class A
1996** 1995 1994 1993 1992 1991
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 .03 .05 .03 .02 .04 .07
Less distributions:
Dividends from net (.03) (.05) (.03) (.02) (.04) (.07)
investment income
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
end of period
Ratios/supplemental data
Class A
1996** 1995 1994 1993 1992 1991
Net assets, end of period $1,908 $1,707 $1,154 $1,053 $1,230 $1,655
(in millions)
Ratio of expenses to .62%+ .73% .94%# .94%# .91% .77%
average daily net assets
Ratio of net income 5.18%+ 4.99% 2.61% 2.36% 3.84% 6.55%
to average daily net assets
Total return 2.6% 5.0% 2.6% 2.4% 3.8% 6.7%
*For a share outstanding throughout the period. Rounded to the nearest
cent.
**Six months ended Jan. 31, 1996 (Unaudited).
#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 of expenses to average daily net assets would have been 0.97%.
+Adjusted to an annual basis.
<PAGE>
IDS Cash Management Fund
______________________________________________________________________________
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*
Class B Class Y
1996*** 1995** 1996*** 1995**
Net asset value, $1.00 $1.00 $1.00 $1.00
beginning of period
Income from investment operations:
Net investment income .02 .02 .03 .02
Less distributions:
Dividends from net (.02) (.02) (.03) (.02)
investment income
Net asset value, $1.00 $1.00 $1.00 $1.00
end of period
Ratios/supplemental data
1996*** 1995** 1996*** 1995**
Class B Class Y
Net assets, end of period $188 $98 $63 $86
(in millions)
Ratio of expenses to 1.38%+ 1.41%+ .62%+ .65%+
average daily net assets
Ratio of net income 4.38%+ 4.73%+ 5.17%+ 5.53%+
to average daily net assets
Total return 2.2% 2.0% 2.6% 2.3%
*For a share outstanding throughout the period. Rounded to the nearest
cent.
**Inception date was March 20, 1995 for Class B and Class Y.
***Six months ended Jan. 31, 1996 (Unaudited).
+Adjusted to an annual basis.
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Cash Management Fund (Percentages represent value of
Jan. 31, 1996 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Certificates of deposit (3.8%)
Eurodollar
ABN Amro Yankee
03-18-96 5.28% $21,000,000 $21,000,266
Canadian Imperial Bank Yankee
03-11-96 5.48 25,000,000 25,000,447
03-11-96 5.50 15,000,000 15,000,000
04-04-96 6.37 10,000,000 10,004,844
01-09-97 5.50 10,000,000 10,000,000
_____________________________________________________________________________________________________________________________
Total certificates of deposit
(Cost: $81,005,557) 81,005,557
_____________________________________________________________________________________________________________________________
Commercial paper (70.6%)
Automotive & related (0.7%)
Ford Motor Credit
03-01-96 5.59 7,400,000 7,367,035
03-04-96 5.44 7,700,000 7,662,972
_____________
Total 15,030,007
______________________________________________________________________________________________________________________________
Banks and savings & loans (8.7%)
ABN Amro Canada
03-18-96 5.69 15,000,000 14,892,552
ABN Amro North Amer Finance
02-22-96 5.46 8,000,000 7,974,660
Commerzbank US Finance
04-22-96 5.35 6,000,000 5,928,720
First Chicago
02-16-96 5.31 10,000,000 (c) 9,999,773
Fleet Funding
02-02-96 5.68 2,900,000 (b) 2,899,545
03-15-96 5.45 2,500,000 (b) 2,483,875
Morgan Guaranty Trust
10-30-96 6.00 10,000,000 10,000,000
Natl Australia Funding (Delaware)
02-12-96 5.64 3,500,000 3,494,011
04-08-96 5.43 5,300,000 5,247,130
NationsBank
04-03-96 5.43 13,000,000 13,000,112
04-08-96 5.42 20,000,000 20,000,000
04-11-96 5.44 25,000,000 25,000,000
07-09-96 5.50 20,000,000 20,000,000
PNC Bank
12-20-96 5.56 10,000,000 (c) 9,996,578
SBT Funding
02-27-96 5.80 11,708,000 (b) 11,659,548
See accompanying notes to investments in securities.
PAGE
Societe Generale North Amer
03-13-96 5.48 14,000,000 13,913,422
04-16-96 5.44 10,800,000 10,679,400
_____________
Total 187,169,326
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.2%)
Coca-Cola
04-26-96 5.27 5,000,000 4,938,611
_____________________________________________________________________________________________________________________________
Brokers dealers (13.8%)
Goldman Sachs Group
02-05-96 5.78 22,000,000 21,986,018
02-06-96 5.78 12,100,000 12,090,387
02-08-96 5.76 20,000,000 19,977,833
02-09-96 5.79 26,400,000 26,366,443
04-12-96 5.45 12,000,000 11,872,910
05-14-96 5.40 15,000,000 14,772,541
Merrill Lynch
04-12-96 5.46 14,000,000 13,851,452
04-25-96 5.24 19,200,000 18,967,936
04-26-96 5.32 18,400,000 18,171,917
05-09-96 5.40 20,000,000 19,711,444
05-13-96 5.39 19,000,000 18,714,683
06-20-96 5.15 10,000,000 9,803,611
Morgan Stanley
Group
02-12-96 5.55 500,000 499,157
02-26-96 5.61 13,200,000 13,149,125
03-06-96 5.45 29,800,000 29,647,457
03-11-96 5.52 15,000,000 14,911,275
04-29-96 5.36 20,000,000 19,741,867
07-30-96 5.19 14,000,000 13,645,800
_____________
Total 297,881,856
_____________________________________________________________________________________________________________________________
Commercial finance (2.4%)
PACCAR Financial
02-27-96 5.74 11,000,000 10,955,114
03-14-96 5.65 10,000,000 9,935,017
USL Capital
02-16-96 5.77 19,000,000 18,954,875
02-23-96 5.52 11,630,000 11,591,052
_____________
Total 51,436,058
_____________________________________________________________________________________________________________________________
Consumer finance-personal loans (0.8%)
Household Finance
02-15-96 5.50 6,100,000 6,087,024
03-01-96 5.45 10,000,000 9,956,339
_____________
Total 16,043,363
_____________________________________________________________________________________________________________________________
Energy (2.1%)
Alabama Power
02-06-96 5.72 21,445,000 21,428,142
02-27-96 5.61 23,126,000 23,032,865
_____________
Total 44,461,007
_____________________________________________________________________________________________________________________________
Financial services (17.8%)
Amer General Capital Services
03-11-96 5.48 17,900,000 (b) 17,794,703
Associates
North Amer
02-22-96 5.44 3,700,000 3,688,302
03-01-96 5.50 4,800,000 4,778,888
Beneficial
02-08-96 5.71 8,900,000 8,890,205
03-04-96 5.50 25,000,000 24,878,667
CAFCO
02-02-96 5.71 12,300,000 12,298,059
02-26-96 5.61 16,400,000 (b) 16,336,792
03-21-96 5.46 10,000,000 (b) 9,926,500
04-02-96 5.38 15,000,000 (b) 14,864,529
Ciesco LP
03-20-96 5.40 10,400,000 (b) 10,325,813
03-21-96 5.39 10,000,000 9,927,180
04-30-96 5.32 13,000,000 12,831,271
CIT Group Holdings
02-09-96 5.76 8,100,000 8,089,758
02-26-96 5.51 25,000,000 24,905,035
Commercial Credit
02-22-96 5.45 11,200,000 11,164,524
Dean Witter, Discover
02-15-96 5.76 17,000,000 16,962,449
02-29-96 5.46 6,200,000 6,173,815
03-01-96 5.46 25,000,000 24,890,646
General Electric
04-02-96 5.42 17,815,000 17,653,502
General Electric
Capital
03-05-96 5.44 20,000,000 19,900,817
05-06-96 6.39 10,000,000 10,000,000
General Electric
Capital Services
02-08-96 5.73 13,800,000 13,784,759
Transamerica Financial
02-12-96 5.51 6,700,000 6,688,781
03-01-96 5.51 19,200,000 19,115,397
03-06-96 5.49 14,600,000 14,524,851
03-08-96 5.45 9,500,000 9,448,605
05-09-96 5.28 12,000,000 11,830,133
USAA Capital
02-22-96 5.69 6,200,000 6,179,638
02-23-96 5.70 16,200,000 16,144,263
______________
Total 383,997,882
_____________________________________________________________________________________________________________________________
Food (4.4%)
Campbell Soup
02-20-96 5.73 11,500,000 (b) 11,465,890
Cargill Global Funding
02-20-96 5.51 14,300,000 (b) 14,258,641
03-15-96 5.66 7,600,000 (b) 7,549,346
03-21-96 5.55 9,600,000 (b) 9,528,525
CPC Intl
05-23-96 5.39 20,000,000 (b) 19,671,467
06-11-96 5.31 5,141,000 (b) 5,043,721
Sara Lee
03-27-96 5.44 11,000,000 10,909,754
Sysco
02-14-96 5.73 10,000,000 (b) 9,979,597
02-29-96 5.72 6,700,000 (b) 6,670,557
______________
Total 95,077,498
_____________________________________________________________________________________________________________________________
Health care (2.2%)
Amgen
02-16-96 5.73 10,000,000 9,976,458
Glaxo Wellcome
02-20-96 5.74 8,200,000 (b) 8,175,548
02-21-96 5.73 20,000,000 (b) 19,937,222
Sandoz
03-13-96 5.63 10,000,000 9,936,792
______________
Total 48,026,020
_____________________________________________________________________________________________________________________________
Industrial transportation (0.7%)
Norfolk Southern
03-22-96 5.46 14,364,000 (b) 14,256,270
_____________________________________________________________________________________________________________________________
Insurance (4.2%)
Aon
02-23-96 5.74 10,000,000 9,965,289
02-26-96 5.78 10,000,000 9,960,278
03-22-96 5.55 1,000,000 992,403
Lincoln Natl
02-21-96 5.51 9,000,000 (b) 8,972,600
SAFECO Credit
03-26-96 5.40 20,000,000 19,839,500
03-28-96 5.40 20,000,000 19,833,556
04-03-96 5.40 22,000,000 21,797,673
______________
Total 91,361,299
_____________________________________________________________________________________________________________________________
Media (4.8%)
Gannett
02-16-96 5.53 20,000,000 (b) 19,954,167
04-10-96 5.40 25,000,000 (b) 24,744,604
04-12-96 5.36 18,000,000 (b) 17,811,850
04-18-96 5.34 11,000,000 (b) 10,876,009
Reed Elsevier
02-07-96 5.54 11,700,000 (b) 11,689,256
02-09-96 5.50 10,170,000 (b) 10,157,615
02-23-96 5.46 9,200,000 (b) 9,169,471
______________
Total 104,402,972
_____________________________________________________________________________________________________________________________
Retail (2.2%)
Colgate Palmolive
03-12-96 5.47 10,700,000 (b) 10,635,562
Penney (JC)
Funding
02-16-96 5.74 12,800,000 12,769,707
02-23-96 5.74 15,000,000 14,948,208
03-13-96 5.66 10,000,000 9,936,450
______________
Total 48,289,927
_____________________________________________________________________________________________________________________________
Utilities - electric (1.2%)
Bayshore Fuel
02-22-96 5.74 19,133,000 19,069,718
Gateway Fuel
02-14-96 5.76 7,096,000 7,081,394
______________
Total 26,151,112
______________________________________________________________________________________________________________________________
Utilities - gas (2.3%)
Michigan Consolidated Gas
02-29-96 5.46 10,000,000 9,957,767
03-08-96 5.66 5,000,000 4,972,100
03-29-96 5.39 10,000,000 9,915,450
Northern States Power
02-28-96 5.49 6,000,000 5,975,475
02-29-96 5.50 10,000,000 9,957,533
Southern California Gas
03-29-96 5.38 8,503,000 (b) 8,431,242
______________
Total 49,209,567
_____________________________________________________________________________________________________________________________
Utilities - telephone (2.1%)
AT&T
05-30-96 5.31 15,900,000 15,626,171
BellSouth Capital Funding
02-12-96 5.53 20,000,000 19,966,389
GTE North
02-20-96 5.73 10,200,000 (b) 10,169,477
______________
Total 45,762,037
_____________________________________________________________________________________________________________________________
Total commercial paper
(Cost: $1,523,494,812) 1,523,494,812
_____________________________________________________________________________________________________________________________
Letters of credit (26.6%)
ABN Amro-
Sci Systems
02-12-96 5.56 16,000,000 15,972,965
02-13-96 5.55 10,000,000 9,981,600
ABN Amro-
U.S. Prime Properties
02-02-96 5.81 9,000,000 8,998,563
03-07-96 5.71 12,000,000 11,934,317
03-14-96 5.68 14,000,000 13,908,533
Bank of Amer-
AES Barbers Point
02-09-96 5.70 11,000,000 10,986,213
04-04-96 5.46 10,000,000 9,905,675
04-11-96 5.42 20,000,000 19,791,944
Barclays Bank-
Banamex
04-03-96 5.41 15,000,000 14,861,792
04-09-96 5.45 10,000,000 9,898,378
Barclays Bank-
Banco Real
04-17-96 5.42 25,000,000 24,717,639
04-29-96 5.37 15,000,000 14,805,667
Barclays Bank-
Corporacion Andina De Forento
02-23-96 5.50 21,500,000 21,428,130
Canadian Imperial Bank-
Commed Fuel
04-11-96 5.36 13,408,000 13,269,823
Credit Agricole-
Louis Dreyfus
02-13-96 5.56 20,000,000 19,963,133
02-21-96 5.47 10,000,000 9,969,722
03-04-96 5.48 15,000,000 14,927,333
03-12-96 5.52 25,000,000 24,848,056
Credit Suisse-
Cofco Capital
02-14-96 5.76 15,000,000 14,969,125
02-26-96 5.77 11,800,000 11,753,210
03-18-96 5.56 8,000,000 7,943,982
03-18-96 5.69 10,300,000 10,226,166
Credit Suisse-
Peregrine
02-26-96 5.50 15,000,000 14,943,021
Credit Suisse-
Sinochem
02-21-96 5.50 11,600,000 11,564,749
03-19-96 5.45 16,000,000 15,887,200
Credit Suisse-
Sunkyong
02-12-96 5.80 10,900,000 10,881,016
First Chicago-
Commed Fuel
03-18-96 5.42 13,404,000 13,311,855
05-09-96 5.26 16,374,000 16,143,108
Societe Generale-
Michelin Tire
02-23-96 5.50 15,000,000 14,949,858
Swiss Bank-
Omnicom
02-07-96 5.58 10,000,000 9,990,750
02-22-96 5.50 10,000,000 9,968,092
02-23-96 5.50 10,000,000 9,966,572
Swiss Bank-
Pemex Capital
04-23-96 5.37 10,000,000 9,879,278
Toronto Dominion Bank-
Franciscan Services
02-16-96 5.53 34,250,000 34,171,510
Union Bank Switzerland-
Oyster Creek Fuel
02-01-96 5.78 24,025,000 24,025,000
02-12-96 5.78 11,400,000 11,380,075
Union Bank Switzerland-
River Fuel Trust 1
03-15-96 5.42 18,598,000 18,478,487
Westdeutsche Landesbank-
Beal Cayman Ltd Brazil
02-29-96 5.78 5,000,000 4,977,911
04-25-96 5.44 20,000,000 19,749,867
Westdeutsche Landesbank-
Petroleos de Venezuela
03-08-96 5.70 10,000,000 9,943,800
_____________________________________________________________________________________________________________________________
Total letters of credit
(Cost: $575,274,115) 575,274,115
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $2,179,774,484)(d) $2,179,774,484
_____________________________________________________________________________________________________________________________
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.
(c) Interest rate varies to reflect current market conditions; rate shown is the effective rate on Jan. 31, 1996.
(d) Also represents the approximate cost of securities for federal income tax purposes at Jan. 31, 1996.
</TABLE>
<PAGE>
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Board members and officers
Board members and officers of the Fund
_____________________________________________________________________
President and interested board member
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent board members
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 board members 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.
_____________________________________________________________________
Other officer
Leslie L. Ogg
Vice president, general counsel and secretary of all funds in the
IDS MUTUAL FUND GROUP.
<PAGE>
PAGE
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.
(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
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
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 stocks 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
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 of justice
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
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) dimension
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
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
