<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. _____
Post-Effective Amendment No. 48 (File No. 2-54516) X
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and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 39 (File No. 811-2591) X
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IDS MONEY MARKET SERIES, INC.
IDS Tower 10
Minneapolis, Minnesota 55440-0010
Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810,
Minneapolis, MN 55402-3268
(612) 330-9283
Approximate Date of Proposed Public Offering:
It is proposed that this filing will become effective (check appropriate box)
immediately upon filing pursuant to paragraph (b)
X on Sept. 30, 1998 pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a)(i)
on (date) pursuant to paragraph (a)(i)
75 days after filing pursuant to paragraph (a)(ii)
on (date) pursuant to paragraph (a)(ii) of Rule 485
If appropriate, check the following box:
this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
<PAGE>
Registrant has registered an indefinite number or amount of securities under the
Securities Act of 1933 pursuant to Section 24f of the Investment Company Act of
1940. Registrant's Rule 24f-2 Notice for its most recent fiscal year will be
filed on or about September 24, 1997.
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Cross reference sheet showing the location in the prospectus and Statement of
Additional Information of the information called for by items enumerated in
Parts A and B of Form N-1A.
Negative answers omitted are so indicated.
<PAGE>
PART A
Item No. Section in Prospectus
1 Cover page of prospectus
2 (a) Sales charge and Fund expenses
(b) The Fund in brief
(c) The Fund in brief
3 (a) Financial highlights
(b) NA
(c) Performance
(d) Financial highlights
4 (a) The Fund in brief; Investment policies and risks; How the Fund is
organized
(b) Investment policies and risks
(c) Investment policies and risks
5 (a) Board members and officers
(b)(i) Investment manager; About American Express Financial Corporation
- General information
(b)(ii) Investment manager
(b)(iii) Investment manager
(c) Portfolio manager
(d) Administrator and transfer agent
(e) Administrator and transfer agent
(f) Distributor
(g) Investment manager; About American Express Financial Corporation
- General information
5A(a) *
(b) *
6 (a) Shares; Voting rights
(b) NA
(c) NA
(d) Voting rights
(e) Cover page; Special shareholder services
(f) Dividend and capital gain distributions; Reinvestments
(g) Taxes
(h) Alternative purchase arrangements
7 (a) Distributor
(b) Valuing Fund shares
(c) How to purchase, exchange or redeem shares
(d) How to purchase shares
(e) NA
(f) Distributor
(g) Alternative purchase arrangements; Reductions and waivers of the
sales charge
8 (a) How to redeem shares
(b) NA
(c) How to purchase shares: Three ways to invest
(d) How to purchase, exchange or redeem shares:
Redemption policies - "Important...
9 None
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PART B
Item No. Section in Statement of Additional Information
10 Cover page of SAI
11 Table of Contents
12 NA
13 (a) Additional Investment Policies; all appendices except Dollar-Cost
Averaging
(b) Additional Investment Policies
(c) Additional Investment Policies
(d) Security Transactions
14 (a) Board members and officers**; Board Members and Officers
(b) Board Members and Officers
(c) Board Members and Officers
15 (a) NA
(b) Principal Holders of Securities, if applicable
(c) Board Members and Officers
16 (a)(i) How the Fund is organized; About the American Express Financial
Corporation**
(a)(ii) Agreements: Investment Management Services Agreement, Plan and
Agreement of Distribution
(a)(iii) Agreements: Investment Management Services Agreement
(b) Agreements: Investment Management Services Agreement
(c) NA
(d) Agreements: Administrative Services Agreement, Shareholder
Service Agreement
(e) NA
(f) Agreement: Distribution Agreement
(g) NA
(h) Custodian Agreement; Independent Auditors
(i) Agreements: Transfer Agency Agreement; Custodian Agreement
17 (a) Security Transactions
(b) Brokerage Commissions Paid to Brokers Affiliated with American
Express Financial Corporation
(c) Security Transactions
(d) Security Transactions
(e) Security Transactions
18 (a) Shares; Voting rights**
(b) NA
19(a) Investing in the Fund
(b) Valuing Fund Shares; Investing in the Fund
(c) Redeeming Shares
20 Taxes
21 (a) Agreements: Distribution Agreement
(b) NA
(c) NA
22 (a) Performance Information (for money market funds only)
(b) Performance Information (for all funds except money market funds)
23 Financial Statements
<PAGE>
* Designates information is located in annual report.
** Designates location in prospectus.
<PAGE>
IDS Cash Management Fund
Prospectus
September 29, 1998
The goal of IDS Cash Management Fund, a part of IDS Money Market Series, Inc.,
is to provide maximum current income consistent with liquidity and stability of
principal. The Fund invests in money market securities.
An investment in the Fund is neither insured nor guaranteed by the U.S.
government. There can be no assurance that the Fund will be able to maintain a
stable net asset value of $1 per share.
This prospectus contains facts that can help you decide if the Fund is the right
investment for you. Read it before you invest and keep it for future reference.
Additional facts about the Fund are in a Statement of Additional Information
(SAI), filed with the Securities and Exchange Commission (SEC) and available for
reference, along with other related materials, on the SEC Internet web site
(http://www.sec.gov). The SAI is incorporated by reference. For a free copy,
contact American Express Shareholder Service.
Like all mutual fund shares, these securities have not been approved or
disapproved by the Securities and Exchange Commission or any state securities
commission, nor has the Securities and Exchange Commission or any state
securities commission passed upon the accuracy or adequacy of this prospectus.
Any representation to the contrary is a criminal offense.
Please note that the Fund:
o is not a bank deposit
o is not federally insured
o is not endorsed by any bank or government agency
o is not guaranteed to achieve its goal
American Express Shareholder Service
P.O. Box 534
Minneapolis, MN
55440-0534
800-862-7919
TTY: 800-846-4852
Web site address: http://www.americanexpress.com/advisors
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Table of contents
The Fund in brief
Goal
Investment policies and risks
Manager and distributor
Portfolio manager
Purchases
Sales charge and Fund expenses
Performance
Financial highlights
Yield
Investment policies and risks
Facts about investments and their risks
Alternative investment option
Valuing Fund shares
How to purchase, exchange or redeem shares Purchases How to purchase shares
How to exchange shares How to redeem shares
Class B - contingent deferred sales charge alternative Waivers of the
contingent deferred sales charge
Special shareholder services
Services
Quick telephone reference
Distributions and taxes
Dividend and capital gain distributions
Reinvestments
Taxes
How to determine the correct TIN
<PAGE>
How the Fund is organized
Shares
Voting rights
Shareholder meetings
Board members and officers
Investment manager
Administrator and transfer agent
Distributor
About American Express Financial Corporation
General information
Year 2000
<PAGE>
The Fund in brief
Goal
IDS Cash Management Fund (the Fund) seeks to provide shareholders with maximum
current income consistent with liquidity and stability of principal. Because any
investment involves risk, achieving this goal cannot be guaranteed. Only
shareholders can change the goal.
Investment policies and risks
The Fund is a diversified mutual fund that invests in money market instruments,
such as marketable debt securities issued by the U.S. government or its agencies
or instrumentalities, bank certificates of deposit, bankers' acceptances,
letters of credit and commercial paper. For further information, refer to the
later section in the prospectus titled "Investment policies and risks."
Manager and distributor
The Fund is managed by American Express Financial Corporation (AEFC), a provider
of financial services since 1894. AEFC currently manages more than $79 billion
in assets for the IDS MUTUAL FUND GROUP. Shares of the Fund are sold through
American Express Financial Advisors Inc. (AEFA), a wholly-owned subsidiary of
AEFC.
Portfolio manager
Terry Fettig joined AEFC in 1986 and serves as senior portfolio manager. He has
managed this Fund since April 1993. He also serves as portfolio manager of IDS
Intermediate Tax-Exempt Fund, IDS Tax-Free Money Fund, IDS Life Moneyshare Fund
and IDS Life Series Fund, Money Market Portfolio.
Purchases
The Fund offers its shares in three classes. New investments must be made in
Class A shares of the Fund. Class A shares have no sales charge or annual
distribution (12b-1) fee. Class B and Class Y shares enable shareholders holding
those classes in other IDS funds to exchange into the Fund. Class B shares have
a contingent deferred sales charge (CDSC) and are subject to a 12b-1 fee. Class
Y shares are sold without a sales charge or 12b-1 fee to qualifying
institutional investors.
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Sales charge and Fund expenses
Shareholder transaction expenses on Class B shares are incurred directly by an
investor on the redemption of Fund shares. Fund operating expenses are paid out
of Fund assets for each class of shares. Operating expenses are reflected in the
Fund's daily share price and dividends, and are not charged directly to
shareholder accounts.
Shareholder transaction expenses
Class A Class B Class Y
Maximum sales charge on purchases
(as a percentage of offering price) 0% 0% 0%
Maximum deferred sales charge
imposed on redemptions (as a
percentage of original purchase price) 0% 5% 0%
Annual Fund operating expenses (as a percentage of average daily net assets):
Class A Class B Class Y
Management fee 0.27% 0.27% 0.27%
12b-1 fee 0.00% 0.75% 0.00%
Other expenses* 0.29% 0.30% 0.29%
Total 0.56% 1.32% 0.56%
*Other expenses include an administrative services fee, a transfer agency fee
and other nonadvisory expenses.
Example: Suppose for each year for the next 10 years, Fund expenses are as above
and annual return is 5%. If you sold your shares at the end of the following
years, for each $1,000 invested, you would pay total expenses of:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
<S> <C> <C> <C> <C>
Class A $ 6 $18 $31 $ 70
Class B $63 $82 $92 $138**
Class B* $13 $42 $72 $138**
Class Y $ 6 $18 $31 $ 70
</TABLE>
*Assuming Class B shares are not redeemed at the end of the period.
**Based on conversion of Class B shares to Class A shares in the ninth year.
<PAGE>
This example does not represent actual expenses, past or future. Actual expenses
may be higher or lower than those shown. Because Class B pays annual
distribution (12b-1) fees, long-term shareholders of Class B may indirectly pay
an equivalent of more than a 6.25% sales charge, the maximum permitted by the
National Association of Securities Dealers.
Performance
Financial highlights
<TABLE>
<CAPTION>
IDS Cash Management Fund
Performance
Financial highlights
Fiscal period ended July 31,
Per share income and capital changes(a)
Class A
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
beginning of period
Income from investment operations:
Net investment income .05 .05 .05 .05 .03 .02 .04 .07 .08 .08
(loss)
Less distributions:
Dividends from net (.05) (.05) (.05) (.05) (.03) (.02) (.04) (.07) (.08) (.08)
investment income
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
end of period
Ratios/supplemental data
Class A
1998 1997 1996 1995 1994 1993 1992 1991 1990 1989
Net assets, end of period $3,926 $3,094 $2,335 $1,707 $1,154 $1,053 $1,230 $1,655 $1,617 $1,392
(in millions)
Ratio of expenses to .56% .58% .63% .73% .c4% .c4% .91% .77% .74% .75%
average daily net assets(b)
Ratio of net income (loss) 5.15% 4.96% 4.97% 4.99% 2.61% 2.36% 3.84% 6.55% 7.81% 8.42%
to average daily net assets
Total return 5.3% 5.1% 5.1% 5.0% 2.6% 2.4% 3.8% 6.7% 7.9% 8.7%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Effective fiscal year 1996, expense ratio is based on total expenses of
the Fund before reduction of earnings credits on cash balances.
c 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%.
</TABLE>
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<TABLE>
<CAPTION>
IDS Cash Management Fund
Fiscal period ended July 31,
Per share income and capital changes(a)
Class B Class Y
1998 1997 1996 1995 b 1998 1997 1996 1995 b
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
beginning of period
Income from investment operations:
Net investment income .04 .04 .04 .02 .05 .05 .05 .02
(loss)
Less distributions:
Dividends from net (.04) (.04) (.04) (.02) (.05) (.05) (.05) (.02)
investment income
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
end of period
Ratios/supplemental data
Class B Class Y
1998 1997 1996 1995 b 1998 1997 1996 1995 b
Net assets, end of period $98 $147 $273 $98 $72 $62 $57 $86
(in millions)
Ratio of expenses to 1.32% 1.34% 1.38% 1.d1% .56% .58% .62% .d5%
average daily net assets(c)
Ratio of net income (loss) 4.38% 4.14% 4.15% 4.d3% 5.16% 4.96% 4.97% 5.d3%
to average daily net assets
Total return 4.5% 4.3% 4.3% 2.0% 5.3% 5.1% 5.1% 2.3%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Inception date was March 20, 1995.
c Effective fiscal year 1996, expense ratio is based on total expenses of
the Fund before reduction of earnings credits on cash balances.
d Adjusted to an annual basis.
The information in these tables has been audited by KPMG Peat Marwick LLP,
independent auditors. The independent auditors' report and additional
information about the performance of the Fund are contained in the Fund's annual
report which, if not included with this prospectus, may be obtained without
charge.
</TABLE>
<PAGE>
Yield
The Fund's annualized simple yield for the seven days ended July 31, 1998, was
4.98% for Class A, 4.22% for Class B and 4.98% for Class Y. The Fund's
annualized compound yield for the same period was 5.10% for Class A, 4.30% for
Class B and 5.10% for Class Y. The Fund calculates annualized simple and
compound yields based on a seven-day period.
Past yields should not be considered an indicator of future yields.
Investment policies and risks
The Fund will limit its investments to those that are denominated in U.S.
dollars, are of high quality and present minimal credit risk. The Fund will
maintain a dollar-weighted average portfolio maturity of 90 days or less and
will not purchase any security with a remaining maturity of more than 13 months.
The various types of investments the investment manager uses to achieve
investment performance are described in more detail in the next section and in
the SAI.
Facts about investments and their risks
Money market instruments: The Fund invests in short-term government securities,
bank obligations, commercial paper and repurchase agreements. Except as noted
below, the commercial paper the Fund invests in must be rated in the highest
category by at least two national rating services or, if unrated, be of
comparable quality as determined by the board. The Fund may invest up to 5% of
its total assets in commercial paper receiving the second highest rating or in
unrated paper determined to be of comparable quality.
Debt securities: The Fund may invest in negotiable certificates of deposit
(CDs), fixed-time deposits, bankers' acceptances and letters of credit of U.S.
banks, branches of domestic banks located outside the United States and U.S.
branches of foreign banks. The Fund may invest in CDs issued by savings and
loans and CDs of foreign banks issued outside the United States. (These CDs are
commonly referred to as Eurodollar CDs.) The Fund also may invest in marketable
securities issued or guaranteed as to principal and interest by the U.S.
government, its agencies or instrumentalities. Some of these securities are not
direct obligations of the U.S government and consequently are not backed by the
full faith and credit of the government.
Concentration: Depending on market conditions and the availability of other
securities, the Fund may invest more than 25% of its total assets in U.S. banks,
U.S. branches of foreign banks and U.S. government securities. The risk of
concentrating investments in banks is that the value of these investments may be
adversely affected by economic or regulatory developments in the banking
industry and by the concentration of bank loan participations.
<PAGE>
Foreign investments: Investments in foreign banks and branches of domestic banks
outside the United States involve certain risks. Domestic banks are required to
maintain specified levels of reserves, are limited in the amounts they can loan
to a single borrower and are subject to other regulations designed to promote
financial soundness. Not all of these laws and regulations apply to the foreign
branches of domestic banks. Domestic bank regulations do not apply to foreign
banks. Eurodollar CDs and non-U.S. fixed-time deposits may be subject to
political and economic risks of the countries in which the investments are made,
including the possibility of seizure or nationalization of foreign deposits,
penalties for early withdrawal of time deposits, imposition of withholding taxes
on income, establishment of exchange controls or adoption of other restrictions
that might affect an investment adversely. The Fund may invest up to 35% of its
total assets in foreign investments.
Securities that are illiquid: A security is illiquid if it cannot be sold
quickly in the normal course of business. No more than 10% of the Fund's net
assets will be held in illiquid securities.
The investment policies described above may be changed by the board.
Lending portfolio securities: The Fund may lend its securities to earn income so
long as borrowers provide collateral equal to the market value of the loans. The
risks are that borrowers will not provide collateral when required or return
securities when due. Unless a majority of the outstanding voting securities
approve otherwise, loans may not exceed 30% of the Fund's net assets.
Alternative investment option
In the future, the board of the Fund may determine for operating efficiencies to
use a master/feeder structure. Under that structure, the Fund's assets would be
invested in an investment company with the same goal as the Fund, rather than
invested directly in a portfolio of securities.
Valuing Fund shares
The NAV is the value of a single Fund share. The NAV is calculated at the close
of business, normally 3 p.m. Central time, each business day (any day the New
York Stock Exchange is open).
The portfolio securities are valued at amortized cost, which approximates market
value, as explained in the SAI. Although the Fund cannot guarantee it will
always be able to maintain a constant net asset value of $1 per share, it will
use its best efforts to do so.
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How to purchase, exchange or redeem shares
Purchases
New investments must be made in Class A shares of the Fund. The Fund offers
Class B and Class Y shares only to facilitate exchanges between classes of these
shares in other IDS funds. The primary differences among the classes are in the
sales charge structures and in their ongoing expenses. These differences are
summarized in the table below.
<TABLE>
<CAPTION>
Sales charge
and distribution
(12b-1) fee Other information
<S> <C> <C>
Class A None
Class B No initial sales charge; maximum CDSC of Shares convert to Class A in the
5%, declines to 0% after six years; 12b-1 ninth year of ownership; CDSC
fee of 0.75% of average daily net assets waived in certain circumstances
Class Y None Available only to certain qualifying
institutional investors
</TABLE>
Conversion of Class B shares to Class A shares - During the ninth calendar year
of owning your Class B shares, Class B shares will convert to Class A shares and
will no longer be subject to a distribution fee. Class B shares that convert to
Class A shares are not subject to a sales charge. Class B shares purchased
through reinvested dividends and distributions also will convert to Class A
shares in the same proportion as the other Class B shares. This means more of
your money will be put to work for you.
Class Y shares - Class Y shares are offered to certain institutional investors.
Class Y shares are sold without a front-end sales charge or a CDSC and are not
subject to either a service fee or a distribution fee. The following investors
are eligible to purchase Class Y shares:
o Qualified employee benefit plans* if the plan:
- uses a daily transfer recordkeeping service offering participants
daily access to IDS funds
and has
- at least $10 million in plan assets or
- 500 or more participants; or
- does not use daily transfer recordkeeping and has
- at least $3 million invested in funds of the IDS MUTUAL FUND
GROUP or - 500 or more participants.
<PAGE>
o Trust companies or similar institutions, and charitable organizations
that meet the definition in Section 501(c)(3) of the Internal Revenue
Code.* These organizations must have at least $10 million invested in
funds of the IDS MUTUAL FUND GROUP.
o Nonqualified deferred compensation plans* whose participants are
included in a qualified employee benefit plan described above.
* Eligibility must be determined in advance by AEFA. To do so, contact your
financial advisor.
How to purchase shares
If you are investing in this Fund for the first time, you will need to set up an
account. Your financial advisor will help you fill out and submit an
application. Your application will be accepted only when federal funds (funds of
the Federal Reserve System) are available to the Fund, normally within three
days of receipt of your application. Once your account is set up, you can choose
among several convenient ways to invest.
Important: When opening an account, you must provide your correct Taxpayer
Identification Number (Social Security or Employer Identification number). See
"Distributions and taxes."
When you purchase shares for a new or existing account, the price you pay per
share is determined at the close of business on the day your investment is
received and accepted at the Minneapolis headquarters.
Purchase policies:
o Investments must be received and accepted in the Minneapolis
headquarters on a business day before 3 p.m. Central time to be
included in your account that day and to receive that day's share
price. Otherwise, your purchase will be processed the next business day
and you will pay the next day's share price.
o The minimums allowed for investment may change from time to time.
o Wire orders can be accepted only on days when your bank, American
Express Client Service Corporation (AECSC), the Fund and Norwest Bank
Minneapolis are open for business.
o Wire purchases are completed when wired payment is received and
the Fund accepts the purchase.
o AECSC and the Fund are not responsible for any delays that occur in
wiring funds, including delays in processing by the bank.
<PAGE>
o You must pay any fee the bank charges for wiring.
o The Fund reserves the right to reject any application for any reason.
o If your application does not specify which class of shares you are
purchasing, it will be assumed that you are investing in Class A
shares.
Three ways to invest
1 By regular account
Send your check and application (or your name and account number if you have an
established account) to:
American Express Financial Advisors Inc.
P.O. Box 74
Minneapolis, MN 55440-0074
Your financial advisor will help you with this process.
Minimum amounts
Initial investment: $ 2,000
Additional investments: $ 100
Account balances: $ 1,000*
2 By scheduled investment plan
Contact your financial advisor to set up one of the following scheduled plans:
o automatic payroll deduction
o bank authorization
o direct deposit of Social Security check
o other plan approved by the Fund
Minimum amounts
Initial investment: $ 2,000
Additional investments: $ 100/each payment
Account balances: $ 1,000
If account balance is below $2,000, frequency of payments must be at least
monthly.
<PAGE>
3 By wire
If you have an established account, you may wire money to:
Norwest Bank Minneapolis
Routing No. 091000019
Minneapolis, MN
Attn: Domestic Wire Dept.
Give these instructions: Credit IDS Account #00-30-015 for personal account #
(your account number) for (your name).
If this information is not included, the order may be rejected and all money
received by the Fund, less any costs the Fund or AECSC incurs, will be returned
promptly.
Minimum amounts
Each wire investment: $1,000
*If your account balance falls below $1,000, you will be asked in writing to
bring it up to $1,000 or establish a scheduled investment plan. If you do not do
so within 30 days, your shares can be redeemed and the proceeds mailed to you.
If you are in a "wrap-fee" program sponsored by AEFA and your wrap program
balance falls below the required program minimum or is terminated, your shares
will be redeemed and the proceeds mailed to you.
How to exchange shares
New investments of Class A shares may be exchanged for either Class A or Class B
shares of any other publicly offered fund in the IDS MUTUAL FUND GROUP available
in your state, except that exchanges into IDS Tax-Free Money Fund must be made
from Class A shares. If you exchange shares from this Fund to another IDS fund,
any further exchanges must be between shares of the same class. For example, you
may not exchange from Class B shares of another IDS fund into Class A shares of
this Fund. Exchange rules are illustrated in the following tables:
<PAGE>
Exchanges:
FROM TO
- -------------------------------------------------------------------------------
Cash
Management Other IDS funds*
Class A Class B
Class A Yes Yes
Class B No Yes
Exchanges:
FROM TO
- -------------------------------------------------------------------------------
Other
IDS funds* Cash Management Fund
Class A Class B
Class A Yes No
Class B No Yes
*Tax-Free Money Fund has only a single class. Therefore, exchanges into Tax-Free
Money Fund must be made from Class A shares.
Note: Exchanges from Class A to Class B are not permitted within Cash Management
Fund.
If your initial investment was in this Fund, and you exchange into a non-money
market fund, you will pay an initial sales charge if you exchange into Class A
and be subject to a contingent deferred sales charge if you exchange into Class
B. If your initial investment was in Class A shares of a non-money market fund
and you exchange shares into this Fund, you may exchange that amount, including
dividends earned on that amount, without paying a sales charge. For complete
information on any other fund, including fees and expenses, read that fund's
prospectus carefully.
If your exchange request arrives at the Minneapolis headquarters before the
close of business, your shares will be redeemed at the net asset value set for
that day. The proceeds will be used to purchase new fund shares the same day.
Otherwise, your exchange will take place the next business day at that day's net
asset value.
For tax purposes, an exchange represents a redemption and purchase and may
result in a gain or loss. However, you cannot create a tax loss (or reduce a
taxable gain) by exchanging from the Fund within 91 days of your purchase. For
further explanation, see the SAI.
<PAGE>
How to redeem shares
You can redeem your shares at any time. American Express Shareholder Service
will mail payment within seven days after receiving your request.
When you redeem shares, the amount you receive may be more or less than the
amount you invested. Your shares will be redeemed at net asset value, minus any
applicable sales charge, at the close of business on the day your request is
accepted at the Minneapolis headquarters. If your request arrives after the
close of business, the price per share will be the net asset value, minus any
applicable sales charge, at the close of business on the next business day.
A redemption is a taxable transaction. Although the Fund attempts to maintain a
stable $1 net asset value, you will have a gain or loss if the Fund's net asset
value is more or less than the cost of your shares. This could affect your tax
liability.
Three ways to request an exchange or redemption of shares
1 By letter
Include in your letter:
o the name of the fund (s)
o the class of shares to be exchanged or redeemed
o your account number(s) (for exchanges, both funds must be registered in the
same ownership)
o your Taxpayer Identification Number (TIN) o the dollar amount
or number of shares you want to exchange or redeem
o signature of all registered account owners
o for redemptions, indicate how you want your money delivered to you
o any paper certificates of shares you hold
Regular mail:
American Express Shareholder Service
Attn: Redemptions
P.O. Box 534
Minneapolis, MN 55440-0534
Express mail:
American Express Shareholder Service
Attn: Redemptions
733 Marquette Ave.
Minneapolis, MN 55402
<PAGE>
2 By phone
American Express Financial Advisors Telephone Transaction Service:
800-437-3133 or
612-671-3800
o The Fund and AECSC will honor any telephone exchange or redemption
request believed to be authentic and will use reasonable procedures to
confirm that they are. This includes asking identifying questions and
tape recording calls. If reasonable procedures are followed, the Fund
or AECSC will not be liable for any loss resulting from fraudulent
requests.
o Phone exchange and redemption privileges automatically apply to all
accounts except custodial, corporate or qualified retirement accounts
unless you request these privileges NOT apply by writing American
Express Shareholder Service. Each registered owner must sign the
request.
o AECSC answers phone requests promptly, but you may experience delays
when call volume is high. If you are unable to get through, use mail
procedure as an alternative.
o Acting on your instructions, your financial advisor may conduct
telephone transactions on your behalf.
o Phone privileges may be modified or discontinued at any time.
Minimum amount
Redemption: $100
Maximum amount
Redemption: $50,000
3 By draft
For Class A only, free drafts are available and can be used just like a check to
withdraw $100 or more from your account. The shares in your account earn
dividends until they are redeemed by the Fund to cover your drafts. Most
accounts will automatically receive free drafts. However, to receive drafts on
qualified or custodial business accounts, you must contact American Express
Shareholder Service. A request form will be supplied and must be signed by each
registered owner. Your draft writing privilege may be modified or discontinued
at any time.
Minimum amount
Redemption: $100
<PAGE>
Exchange policies:
o You may make up to three exchanges within any 30-day period, with each
limited to $300,000. These limits do not apply to certain employee
benefit plans or other arrangements through which one shareholder
represents the interests of several. Exceptions may be allowed with
pre-approval of the Fund.
o Except as otherwise noted, exchanges must be made into the same
class of shares of the new fund.
o If your exchange creates a new account, it must satisfy the minimum
investment amount for new purchases.
o Once we receive your exchange request, you cannot cancel it.
o Shares of the new fund may not be used on the same day for another
exchange.
o If your shares are pledged as collateral, the exchange will be delayed
until written approval is obtained from the secured party.
o AECSC and the Fund reserve the right to reject any exchange, limit the
amount, or modify or discontinue the exchange privilege, to prevent
abuse or adverse effects on the Fund and its shareholders. For example,
if exchanges are too numerous or too large, they may disrupt the Fund's
investment strategies or increase its costs.
Redemption policies:
o For Class B only a "change of mind" option allows you to change your
mind after requesting a redemption and to use all or part of the
proceeds to purchase new shares in the same account from which you
redeemed. If you reinvest in Class B, any CDSC you paid on the amount
you are reinvesting also will be reinvested. To take advantage of this
option, send a written request within 30 days of the date your
redemption request was received. Include your account number and
mention this option. This privilege may be limited or withdrawn at any
time, and it may have tax consequences.
o A telephone redemption request will not be allowed within 30 days of a
phoned-in address change.
Important: If you request a redemption of shares you recently purchased by a
check or money order that is not guaranteed, the Fund will wait for your check
to clear. It may take up to 10 days from the date of purchase before a check is
mailed to you. (A check may be mailed earlier if your bank provides evidence
satisfactory to the Fund and AECSC that your check has cleared.)
<PAGE>
Three ways to receive payment when you redeem shares
1 By regular or express mail
o Mailed to the address on record
o Payable to names listed on the account
NOTE: You will be charged a fee if you request express mail delivery.
2 By wire
o Minimum wire redemption: $1,000
o Request that money be wired to your bank
o Bank account must be in the same ownership as the IDS fund account
NOTE: Pre-authorization required. For instructions, contact your
financial advisor or American Express Shareholder Service.
3 By scheduled payout plan
o Minimum payment: $50
o Contact your financial advisor or American Express Shareholder Service
to set up regular payments to you on a monthly, bimonthly, quarterly,
semiannual or annual basis
o Purchasing new shares while under a payout plan may be disadvantageous
because of the sales charges
Class B - contingent deferred sales charge alternative
Where a CDSC is imposed on a redemption, it is based on the amount of the
redemption and the number of calendar years, including the year of purchase,
between purchase and redemption. The following table shows the declining scale
of percentages that apply to redemptions during each year after a purchase:
If a redemption is The percentage rate
made during the for the CDSC is:
First year 5%
Second year 4%
Third year 4%
Fourth year 3%
Fifth year 2%
Sixth year 1%
Seventh year 0%
<PAGE>
If the amount you are redeeming reduces the current net asset value of your
investment in Class B shares below the total dollar amount of all your purchase
payments during the last six years (including the year in which your redemption
is made), the CDSC is based on the lower of the redeemed purchase payments or
market value.
The following example illustrates how the CDSC is applied. Assume you had
invested $10,000 in Class B shares and that your investment had appreciated in
value to $12,000 after 15 months, including reinvested dividend and capital gain
distributions. You could redeem any amount up to $2,000 without paying a CDSC
($12,000 current value less $10,000 purchase amount). If you redeemed $2,500,
the CDSC would apply only to the $500 that represented part of your original
purchase price. The CDSC rate would be 4% because a redemption after 15 months
would take place during the second year after purchase.
Because the CDSC is imposed only on redemptions that reduce the total of your
purchase payments, you never have to pay a CDSC on any amount you redeem that
represents appreciation in the value of your shares, income earned by your
shares or capital gains. In addition, when determining the rate of any CDSC,
your redemption will be made from the oldest purchase payment you made. Of
course, once a purchase payment is considered to have been redeemed, the next
amount redeemed is the next oldest purchase payment. By redeeming the oldest
purchase payments first, lower CDSCs are imposed than would otherwise be the
case.
Waivers of the contingent deferred sales charge The CDSC on Class B shares will
be waived on redemptions of shares:
o In the event of the shareholder's death,
o Held in a trusteed employee benefit plan,
o Held in IRAs or certain qualified plans for which American Express
Trust Company acts as custodian, such as Keogh plans, tax-sheltered
custodial accounts or corporate pension plans, provided that the
shareholder is:
- at least 59-1/2 years old, and
- taking a retirement distribution (if the redemption is part of a
transfer to an IRA or qualified plan in a product distributed by
AEFA, or a custodian-to-custodian transfer to a product not
distributed by AEFA, the CDSC will not be waived), or
- redeeming under an approved substantially equal periodic payment
arrangement.
Special shareholder services
Services
To help you track and evaluate the performance of your investments, AECSC
provides these services:
<PAGE>
Quarterly statements featuring: (1) a list of all your holdings and transactions
during the previous three months and (2) personalized mutual fund performance
information about your specific account.
Yearly tax statements featuring average-cost-basis reporting of capital gains or
losses if you redeem your shares along with distribution information which
simplifies tax calculations.
A personalized mutual fund progress report detailing returns on your initial
investment and cash-flow activity in your account. It calculates a total return
to reflect your individual history in owning Fund shares. This report is
available from your financial advisor.
Quick telephone reference
American Express Financial Advisors 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
TTY Service
For the hearing impaired
800-846-4852
American Express Financial Advisors Easy Access Line
Automated account information (TouchTone(R) phones only), including current Fund
prices and performance, account values and recent account transactions
800-862-7919
Distributions and taxes
As a shareholder you are entitled to your share of the Fund's net income and any
net gains realized on its investments. The Fund distributes dividends and
capital gain distributions to qualify as a regulated investment company and to
avoid paying corporate income and excise taxes. Dividend and capital gain
distributions will have tax consequences you should know about.
<PAGE>
Dividend and capital gain distributions
The Fund's net investment income from dividends and interest is distributed to
you monthly as dividends. Capital gains are realized when a security is sold for
a higher price than was paid for it. Short-term capital gains are distributed at
the end of the calendar year and are included in net investment income.
Long-term capital gains are realized when a security is held for more than one
year. The Fund will offset any net realized capital gains by any available
capital loss carryovers. Net realized long-term capital gains, if any, are
distributed at the end of the calendar year as capital gain distributions. These
long-term capital gains will be subject to differing tax rates depending on the
holding period of the underlying investments.
Dividends for each class will be calculated at the same time, in the same manner
and will be the same amount prior to deduction of expenses. Expenses
attributable solely to a class of shares will be paid exclusively by that class.
Reinvestments
Dividends and capital gain distributions are automatically reinvested in
additional shares in the same class of the Fund, unless:
o you request the Fund in writing or by phone to pay distributions to you
monthly in cash, or
o you direct the Fund to invest your distributions monthly in any
publicly available IDS fund for which you have previously opened an
account. Your purchases may be subject to a sales charge.
The reinvestment price is the net asset value at close of business on the day
the distribution is paid. (Your quarterly statement will confirm the amount
invested and the number of shares purchased.)
If you choose cash distributions, you will receive cash only for distributions
declared after your request has been processed.
If the U.S. Postal Service cannot deliver the checks for the cash distributions,
we will reinvest the checks into your account at the then-current net asset
value and make future distributions in the form of additional shares. Prior to
reinvestment, no interest will accrue on amounts represented by uncashed
distribution or redemption checks.
Taxes
Distributions are subject to federal income tax and also may be subject to state
and local taxes. Distributions are taxable in the year the Fund declares them
regardless of whether you take them in cash or reinvest them.
<PAGE>
Each January, you will receive a tax statement showing the kinds and total
amount of all distributions you received during the previous year. You must
report distributions on your tax returns, even if they are reinvested in
additional shares.
Redemptions and exchanges subject you to a tax on any capital gain. If you sell
shares for more than their cost, the difference is a capital gain. Your gain may
be short term (for shares held for one year or less) or long term (for shares
held for more than one year). Long-term capital gains will be taxed at rates
that vary depending upon the holding period. Long-term capital gains are divided
into two holding periods: (1) shares held more than one year but not more than
18 months and (2) shares held more than 18 months.
Your Taxpayer Identification Number (TIN) is important. As with any financial
account you open, you must list your current and correct Taxpayer Identification
Number (TIN) -- either your Social Security or Employer Identification number.
The TIN must be certified under penalties of perjury on your application when
you open an account.
If you do not provide the TIN, or the TIN you report is incorrect, you could be
subject to backup withholding of 31% of taxable distributions and proceeds from
certain sales and exchanges. You also could be subject to further penalties,
such as:
o a $50 penalty for each failure to supply your correct TIN
o a civil penalty of $500 if you make a false statement that results in
no backup withholding
o criminal penalties for falsifying information
You also could be subject to backup withholding because you failed to report
interest or dividends on your tax return as required.
<PAGE>
How to determine the correct TIN
<TABLE>
<CAPTION>
Use the Social Security or
For this type of account: Employer Identification number of:
<S> <C>
Individual or joint account The individual or individuals listed on the account
Custodian account of a minor The minor
(Uniform Gifts/Transfers to Minors Act)
A living trust The grantor-trustee (the
person who puts the money
into the trust)
An irrevocable trust, The legal entity (not the personal representative
pension trust or estate or trustee, unless no legal entity is designated in
the account title)
Sole proprietorship The owner
Partnership The partnership
Corporate The corporation
Association, club or tax-exempt organization The organization
</TABLE>
For details on TIN requirements, ask your financial advisor or local American
Express Financial Advisors office for federal Form W-9, "Request for Taxpayer
Identification Number and Certification."
Important: This information is a brief and selective summary of certain federal
tax rules that apply to this Fund. Tax matters are highly individual and
complex, and you should consult a qualified tax advisor about your personal
situation.
How the Fund is organized
Shares
The Fund is owned by its shareholders. The Fund issues shares in three classes -
Class A, Class B and Class Y. Each class has different sales arrangements and
bears different expenses. Each class represents interests in the assets of the
Fund. Par value is one cent per share. Both full and fractional shares can be
issued.
The Fund no longer issues stock certificates.
<PAGE>
Voting rights
As a shareholder, you have voting rights over the Fund's management and
fundamental policies. You are entitled to one vote for each share you own.
Shares of the Fund have cumulative voting rights. Each class has exclusive
voting rights with respect to the provisions of the Fund's distribution plan
that pertain to a particular class and other matters for which separate class
voting is appropriate under applicable law.
Shareholder meetings
The Fund does not hold annual shareholder meetings. However, the board members
may call meetings at their discretion, or on demand by holders of 10% or more of
the outstanding shares, to elect or remove board members.
Board members and officers
Shareholders elect a board that oversees the operations of the Fund and chooses
its officers. Its officers are responsible for day-to-day business decisions
based on policies set by the board. The board has named an executive committee
that has authority to act on its behalf between meetings. Board members and
officers serve 47 IDS and IDS Life funds and 15 Master Trust portfolios, except
for William H.
Dudley, who does not serve the nine IDS Life funds.
Independent board members and officers
Chairman of the board
William R. Pearce*
Chairman of the board, Board Services Corporation (provides administrative
services to boards including the boards of the IDS and IDS Life funds and Master
Trust portfolios).
H. Brewster Atwater, Jr.
Retired chairman and chief executive officer, General Mills, Inc.
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for Public Policy Research.
Heinz F. Hutter
Retired president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Alan K. Simpson
Former United States senator for Wyoming.
<PAGE>
Edson W. Spencer
Retired chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board, The Valspar Corporation.
Officer
Vice president, general counsel and secretary
Leslie L. Ogg*
President of Board Services Corporation.
Board members and officers associated with AEFC
President
John R. Thomas*
Senior vice president, AEFC.
William H. Dudley*
Senior advisor to the chief executive officer, AEFC.
David R. Hubers*
President and chief executive officer, AEFC.
Officers associated with AEFC
Vice president
Peter J. Anderson*
Senior vice president, AEFC.
Vice president
Frederick C. Quirsfeld*
Vice president, AEFC.
Treasurer
Matthew N. Karstetter*
Vice president, AEFC.
<PAGE>
Refer to the SAI for the board members' and officers' biographies.
* Interested person as defined by the Investment Company Act of 1940.
Investment manager
The Fund pays AEFC for managing its assets. Under its Investment Management
Services Agreement, AEFC is paid a fee for these services based on the average
daily net assets of the Fund, as follows:
Assets Annual rate
(billions)at each asset level
First $1.0 0.310%
Next 0.5 0.293
Next 0.5 0.275
Next 0.5 0.258
Over 2.5 0.240
For the fiscal year ended July 31, 1998, the Fund paid AEFC a total investment
management fee of 0.27% of its average daily net assets. Under the Agreement,
the Fund also pays taxes, brokerage commissions and nonadvisory expenses.
Administrator and transfer agent
Under an Administrative Services Agreement, the Fund pays AEFC for
administration and accounting services at an annual rate of 0.03% decreasing in
gradual percentages to 0.02% as assets increase.
Under a separate Transfer Agency Agreement, AECSC maintains shareholder accounts
and records. The Fund pays AECSC an annual fee per shareholder account for this
service as follows:
o Class A $20
o Class B $21
o Class Y $20
Distributor
The Fund has an exclusive distribution agreement with AEFA. Financial advisors
representing AEFA provide information to investors about individual investment
programs, the Fund and its operations, new account applications, and exchange
and redemption requests.
<PAGE>
Persons who buy Class A shares pay no sales charge at the time of purchase.
Persons who buy Class B shares are subject to a contingent deferred sales charge
on a redemption in the first six years and pay an asset-based sales charge (also
known as a 12b-1 fee) of 0.75% of the Fund's average daily net assets. Class Y
shares are sold without a sales charge and without an asset-based sales charge.
Financial advisors may receive different compensation for selling Class A, Class
B and Class Y shares.
Total expenses paid by the Fund's Class A shares for the fiscal year ended July
31, 1998, were 0.56% of its average daily net assets. Expenses for Class B and
Class Y were 1.32% and 0.56%, respectively.
About American Express Financial Corporation
General information
The AEFC family of companies offers not only mutual funds but also insurance,
annuities, investment certificates and a broad range of financial management
services.
Besides managing investments for all funds in the IDS MUTUAL FUND GROUP, AEFC
also manages investments for itself and its subsidiaries, IDS Certificate
Company and IDS Life Insurance Company. Total assets under management on July
31, 1998 were more than $201 billion.
AEFA serves individuals and businesses through its nationwide network of more
than 180 offices and more than 8,800 advisors.
Other AEFC subsidiaries provide investment management and related services for
pension, profit sharing, employee savings and endowment funds of businesses and
institutions.
AEFC is located at IDS Tower 10, Minneapolis, MN 55440-0010. It is a
wholly-owned subsidiary of American Express Company (American Express), a
financial services company with headquarters at American Express Tower, World
Financial Center, New York, NY 10285. The Fund may pay brokerage commissions to
broker-dealer affiliates of AEFC.
<PAGE>
Year 2000
The Year 2000 issue is the result of computer programs having been written using
two digits rather than four to define a year. Any programs that have
time-sensitive software may recognize a date using "00" as the year 1900 rather
than 2000. This could result in the failure of major systems or miscalculations,
which would have a material impact on the operations of the Fund. The Fund has
no computer systems of its own but is dependent upon the systems maintained by
AEFC and certain other third parties.
A comprehensive review of AEFC's computer systems and business processes has
been conducted to identify the major systems that could be affected by the Year
2000 issue. Steps are being taken to resolve any potential problems including
modification of existing software and the purchase of new software. These
measures are scheduled to be completed and tested on a timely basis. AEFC's goal
is to complete internal remediation and testing of each of its critical systems
by the end of 1998 and to continue compliance efforts through 1999. The Year
2000 readiness of other third parties whose system failures could have an impact
on the Fund's operations currently is being evaluated. The companies or
governments in which the Fund invests also may be adversely affected by Year
2000 issues. This may affect the value of the Fund's investments. The potential
materiality of any impact is not known at this time.
<PAGE>
IDS MONEY MARKET SERIES, INC.
STATEMENT OF ADDITIONAL INFORMATION
FOR
IDS CASH MANAGEMENT FUND
Sept. 29, 1998
This Statement of Additional Information (SAI) is not a prospectus. It should be
read together with the prospectus and the financial statements contained in the
Annual Report which may be obtained from your American Express financial advisor
or by writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534.
This SAI is dated Sept. 29, 1998, and it is to be used with the prospectus dated
Sept. 29, 1998, and the Annual Report for the fiscal year ended July 31, 1998.
<PAGE>
IDS Money Market Series, Inc.
TABLE OF CONTENTS
Goal and Investment Policies....................................See Prospectus
Additional Investment Policies.............................................p.3
Security Transactions......................................................p.5
Brokerage Commissions Paid to Brokers Affiliated with
American Express Financial Corporation.....................................p.6
Performance Information....................................................p.6
Valuing Fund Shares........................................................p.8
Investing in the Fund......................................................p.9
Redeeming Shares..........................................................p.10
Pay-out Plans.............................................................p.12
Taxes.....................................................................p.13
Agreements................................................................p.14
Organizational Information................................................p.17
Board Members and Officers................................................p.17
Compensation for Fund Board Members.......................................p.21
Independent Auditors......................................................p.21
Financial Statements.........................................See Annual Report
Prospectus................................................................p.22
Appendix A: Description of Money Market Securities........................p.23
Appendix B: Dollar-Cost Averaging.........................................p.25
<PAGE>
ADDITIONAL INVESTMENT POLICIES
These are investment policies in addition to those presented in the prospectus.
The policies below are fundamental policies of IDS Cash Management Fund, (the
Fund) and may be changed only with shareholder approval. Unless holders of a
majority of the outstanding voting securities agree to make the change the Fund
will not:
`Invest in a company to control or manage it.
`Act as an underwriter (sell securities for others). However, under the
securities laws, the Fund may be deemed to be an underwriter when it purchases
securities directly from the issuer and later resells them.
`Borrow money or property, except as a temporary measure for extraordinary or
emergency purposes, in an amount not exceeding one-third of the market value of
its total assets (including borrowings) less liabilities (other than borrowings)
immediately after the borrowing. The Fund has not borrowed in the past and has
no present intention to borrow.
`Invest in exploration or development programs, such as oil, gas or mineral
leases.
`Invest more than 5% of its total assets in securities of companies, including
any predecessors, that have a record of less than three years continuous
operations.
`Pledge or mortgage its assets beyond 15% of total assets.
`Invest more than 5% of its total assets in securities of any one company,
government or political subdivision thereof, except the limitation will not
apply to investments in securities issued by the U.S. government, its agencies
or instrumentalities.
`Buy on margin, sell short or deal in options to buy or sell securities.
`Buy or sell real estate, commodities or commodity contracts. For purposes of
this policy, real estate includes real estate limited partnerships.
`Purchase securities of an issuer if the board members and officers of the Fund
and of American Express Financial Corporation (AEFC) hold more than a certain
percentage of the issuer's outstanding securities. If the holdings of all board
members and officers of the Fund and of AEFC who own more than 0.5% of an
issuer's securities are added together, and if in total they own more than 5%,
the Fund will not purchase securities of that issuer.
<PAGE>
`Lend Fund securities in excess of 30% of its net assets, at market value. If
the Fund were to make long- or short-term loans, it will receive the market
price in cash, U.S. government securities, letters of credit or such other
collateral as may be permitted by regulatory agencies and approved by the board.
If the market price of the loaned securities goes up, the Fund will get
additional collateral on a daily basis. The risks are that the borrower may not
provide additional collateral when required or return the securities when due.
Loans will not be made unless the investment manager believes the opportunity
for additional income outweighs these risks. During the existence of the loan,
the Fund receives cash payments equivalent to all interest or other
distributions paid on the loaned securities. The Fund has no present intention
of loaning securities.
`Purchase common stocks, preferred stocks, warrants, other equity securities,
corporate bonds or debentures, state bonds, municipal bonds or industrial
revenue bonds.
`Purchase securities of other open-end investment companies or invest more than
10% of the market value of its assets in closed-end funds. If the Fund ever
makes such an investment, purchases will occur only on the open market where the
dealer's or sponsor's profit is limited to a regular commission. The Fund has no
present intention of investing in other registered investment companies.
Unless changed by the board, the Fund will not:
`Invest more than 10% of its net assets in securities that are illiquid whether
or not registration or the filing of a notification under the Securities Act of
1933 or the taking of similar action under other securities laws relating to the
sale of securities is required. A risk of any such investment is that it might
not be able to be easily liquidated. For the purpose of this policy, repurchase
agreements with maturities greater than seven days and non-negotiable fixed time
deposits will be treated as illiquid securities.
In determining the liquidity of commercial paper issued in transactions not
involving a public offering under Section 4(2) of the Securities Act of 1933,
the investment manager, under guidelines established by the board, will evaluate
relevant factors such as the issuer and the size and nature of its commercial
paper programs, the willingness and ability of the issuer or dealer to
repurchase the paper, and the nature of the clearance and settlement procedures
for the paper.
The Fund may invest in commercial paper rated in the highest rating category by
at least two nationally recognized statistical rating organizations (or by one,
if only one rating is assigned) and in unrated paper determined by the board to
be of comparable quality. The Fund also may invest up to 5% of its total assets
in commercial paper receiving the second highest rating or in unrated paper
determined to be of comparable quality.
<PAGE>
Notwithstanding any of the Fund's other investment policies, the Fund may invest
its assets in an open-end management investment company having substantially the
same investment objectives, policies and restrictions as the Fund for the
purpose of having those assets managed as part of a combined pool.
For a description of money market securities, see Appendix A.
SECURITY TRANSACTIONS
Subject to policies set by the board, AEFC is authorized to determine,
consistent with the Fund's investment goal and policies, which securities will
be purchased, held or sold. In determining where the buy and sell orders are to
be placed, AEFC has been directed to use its best efforts to obtain the best
available price and most favorable execution except where otherwise authorized
by the board.
AEFC has a strict Code of Ethics that prohibits its affiliated personnel from
engaging in personal investment activities that compete with or attempt to take
advantage of planned portfolio transactions for any fund in the IDS MUTUAL FUND
GROUP. AEFC carefully monitors compliance with its Code of Ethics.
Normally, the Fund's securities are traded on a principal rather than an agency
basis. In other words, AEFC will trade directly with the issuer or with a dealer
who buys or sells for its own account, rather than acting on behalf of another
client. AEFC does not pay the dealer commissions. Instead, the dealer's profit,
if any, is the difference, or spread, between the dealer's purchase and sale
price for the security.
Each investment decision made for the Fund is made independently from any
decision made for another fund in the IDS MUTUAL FUND GROUP or other account
advised by AEFC or any AEFC subsidiary. When the Fund buys or sells the same
security as another fund or account, AEFC carries out the purchase or sale in a
way the Fund agrees in advance is fair. Although sharing in large transactions
may adversely affect the price or volume purchased or sold by the Fund, the Fund
hopes to gain an overall advantage in execution.
The Fund paid total brokerage commissions of $0 for the fiscal year ended July
31, 1998, $0 for fiscal year 1997, and $0 for fiscal year 1996. Substantially
all firms through whom transactions were executed provide research services.
No transactions were directed to brokers because of research services they
provided to the Fund.
<PAGE>
As of the fiscal year ended July 31, 1998, the Fund held securities of its
regular brokers or dealers of the parent of those brokers or dealers that
derived more than 15% of gross revenue from securities-related activities as
presented below:
Value of Securities owned at
Name of Issuer End of Fiscal Year
- -------------- - ------------------
Bank of America $59,711,596
Bear Stearns 122,314,130
First Chicago 39,026,742
Goldman Sachs 94,879,245
Merrill Lynch 179,148,087
Morgan Stanley 92,056,030
Salomon Smith Barney 181,091,485
BROKERAGE COMMISSIONS PAID TO BROKERS AFFILIATED WITH AMERICAN EXPRESS FINANCIAL
CORPORATION
Affiliates of American Express Company (American Express) (of which AEFC is a
wholly-owned subsidiary) may engage in brokerage and other securities
transactions on behalf of the Fund according to procedures adopted by that
Fund's board and to the extent consistent with applicable provisions of the
federal securities laws. AEFC will use an American Express affiliate only if (i)
AEFC determines that the Fund will receive prices and executions at least as
favorable as those offered by qualified independent brokers performing similar
brokerage and other services for the Fund and (ii) the affiliate charges the
Fund commission rates consistent with those the affiliate charges comparable
unaffiliated customers in similar transactions and if such use is consistent
with terms of the Investment Management Services Agreement.
No brokerage commissions were paid to brokers affiliated with AEFC for the three
most recent fiscal years.
PERFORMANCE INFORMATION
The Fund may quote various performance figures to illustrate past performance.
Average annual total return and current yield quotations used by the Fund are
based on standardized methods of computing performance as required by the SEC.
An explanation of the methods used by the Fund to compute performance follows
below.
<PAGE>
Average annual total return
The Fund may calculate average annual total return for a class for certain
periods by finding the average annual compounded rates of return over the period
that would equate the initial amount invested to the ending redeemable value,
according to the following formula:
P (1 + T)n = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1,000 payment,
made at the beginning of a period, at the end of the period
(or fractional portion thereof)
Aggregate total return
The Fund may calculate aggregate total return for a class for certain periods
representing the cumulative change in the value of an investment in the fund
over a specified period of time according to the following formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000
ERV = ending redeemable value of a hypothetical $1,000 payment,
made at the beginning of a period, at the end of the period
(or fractional portion thereof)
Annualized yield
The Fund calculates annualized simple and compound yields for a class based on a
seven-day period.
The simple yield is calculated by determining the net change in the value of a
hypothetical account having a balance of one share at the beginning of the
seven-day period, dividing the net change in account value by the value of the
account at the beginning of the period to obtain the return for the period, and
multiplying that return by 365/7 to obtain an annualized figure. The value of
the hypothetical account includes the amount of any declared dividends, the
value of any shares purchased with any dividend paid during the period and any
dividends declared for such shares. The Fund's yield does not include any
realized or unrealized gains or losses.
<PAGE>
The Fund calculates its compound yield according to the following formula:
Compound Yield = (return for seven-day period + 1) x (365/7) - 1
Fund's simple annualized yield was 4.98% for Class A, 4.22% for Class B and
4.98% for Class Y and its compound yield was 5.10% for Class A, 4.30% for Class
B and 5.10% for Class Y on July 31, 1998, the last day of the Fund's fiscal
year.
Yield, or rate of return, on Fund shares may fluctuate daily and does not
provide a basis for determining future yields. However, it may be used as one
element in assessing how the Fund is meeting its goal. When comparing an
investment in the Fund with savings accounts and similar investment
alternatives, you must consider that such alternatives often provide an agreed
to or guaranteed fixed yield for a stated period of time, whereas the Fund's
yield fluctuates. In comparing the yield of one money market fund to another,
you should consider the Fund's investment policies, including the types of
investments permitted.
In its sales material and other communications, the Fund may quote, compare or
refer to rankings, yields or returns as published by independent statistical
services or publishers and publications such as The Bank Rate Monitor National
Index, Barron's, Business Week, Donoghue's Money Market Fund Report, Financial
Services Week, Financial Times, Financial World, Forbes, Fortune, Global
Investor, Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Lipper Analytical Services, Money, Morningstar, Mutual Fund Forecaster,
Newsweek, The New York Times, Personal Investor, Stanger Report, Sylvia Porter's
Personal Finance, USA Today, U.S. News and World Report, The Wall Street Journal
and Wiesenberger Investment Companies Service.
VALUING FUND SHARES
The Fund values its securities as follows: All of the securities in the Fund's
portfolio are valued at amortized cost. The amortized cost method of valuation
is an approximation of market value determined by systematically increasing the
carrying value of a security if acquired at a discount, or reducing the carrying
value if acquired at a premium, so that the carrying value is equal to maturity
value on the maturity date. It does not take into consideration unrealized
capital gains or losses.
The board has established procedures designed to stabilize the fund's price per
share for purposes of sales and redemptions at $1, to the extent that it is
reasonably possible to do so. These procedures include review of the Fund's
securities by the board, at intervals deemed appropriate by it, to determine
whether the Fund's net asset value per share computed by using available market
quotations deviates from a share value of $1 as computed using the amortized
cost method. The board must consider any deviation that appears and if it
exceeds 0.5% it must determine what action, if any, needs to be taken. If the
board determines a deviation exists that may result in a material dilution of
the holdings of current shareholders or investors, or in other unfair
consequences for such
<PAGE>
persons, it must undertake remedial action that it deems necessary and
appropriate. Such action may include withholding dividends, calculating net
asset value per share for purposes of sales and redemptions using available
market quotations, making redemptions in kind, and selling portfolio securities
before maturity in order to realize capital gains or losses or to shorten
average portfolio maturity.
While the amortized cost method provides certainty and consistency in portfolio
valuation, it may result in valuations of securities that are either somewhat
higher or lower than the prices at which the securities could be sold. This
means that during times of declining interest rates the yield on the Fund's
shares may be higher than if valuations of securities were made based on actual
market prices and estimates of market prices. Accordingly, if using the
amortized cost method were to result in a lower portfolio value, a prospective
investor in the Fund would be able to obtain a somewhat higher yield than he
would get if portfolio valuation were based on actual market values. Existing
shareholders, on the other hand, would receive a somewhat lower yield than they
would otherwise receive. The opposite would happen during a period of rising
interest rates.
The Exchange, AEFC and the Fund will be closed on the following holidays: New
Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day.
INVESTING IN THE FUND
The minimum purchase for directors, officers and employees of the Fund or AEFC
and AEFC financial advisors is $1,000 for the Fund (except payroll deduction
plans), with a minimum additional purchase of $25.
Systematic Investment Programs
After you make your initial investment of $2,000 for the Fund, you can arrange
to make additional payments of $100 or more on a regular basis. These minimums
do not apply to all systematic investment programs. You decide how often to make
payments - monthly, quarterly or semiannually. You are not obligated to make any
payments. The Fund also can change the program or end it at any time. If there
is no obligation, why do it? Putting money aside is an important part of
financial planning. With a systematic investment program, you have a goal to
work for.
How does this work? Each purchase is a separate transaction. After each purchase
your new shares will be added to your account. Shares bought through these
programs are exactly the same as any other Fund shares. They can be bought and
sold at any time. A systematic investment program is not an option or an
absolute right to buy shares.
For a discussion on dollar-cost averaging, see Appendix B.
<PAGE>
Automatic Directed Dividends
Dividends, including capital gain distributions, paid by another fund in the IDS
MUTUAL FUND GROUP may be used to automatically purchase shares in the same class
of the Fund. Dividend and capital gain distributions, if any, paid by the Fund
may be used to automatically purchase shares of another fund in the IDS MUTUAL
FUND GROUP available in your state. Dividends may be directed to existing
accounts only. Dividends declared by the Fund are exchanged the following day.
Dividends can be exchanged into the same class of another fund in the IDS MUTUAL
FUND GROUP but cannot be split to make purchases in two or more funds. Automatic
directed dividends are available between accounts of any ownership except:
Between a non-custodial account and an IRA, or 401(k) plan account or other
qualified retirement account of which American Express Trust Company acts as
custodian;
Between two American Express Trust Company custodial accounts with different
owners (for example, you may not exchange dividends from your IRA to the IRA of
your spouse);
Between different kinds of custodial accounts with the same ownership (for
example, you may not exchange dividends from your IRA to your 401(k) plan
account, although you may exchange dividends from one IRA to another IRA).
Dividends may be directed from accounts established under the Uniform Gifts to
Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) only into other UGMA
or UTMA accounts with identical ownership.
The Fund's investment goal is described in its prospectus along with other
information, including fees and expense ratios. Before exchanging dividends into
another fund, you should read that fund's prospectus. You will receive a
confirmation that the automatic directed dividend service has been set up for
your account.
REDEEMING SHARES
You have a right to redeem your shares at any time. For an explanation of
redemption procedures, please see the prospectus.
Drafts: Drafts of $100 or more are available for shareholders of the Fund.
Drafts should be requested by registered owners only. The number of signatures
required for payment of a draft may vary by account ownership. Drafts should be
used like checks, but should not be sent directly to the Minneapolis
headquarters to be cashed. When the draft is accepted by the Fund through the
banking system, shares will be redeemed from your account. In order to qualify
for this service, all shares must be held in non-certificate form. If the
account is not large enough to cover a draft, it will be dishonored and
<PAGE>
returned marked "insufficient funds." Drafts written on purchases made with
non-guaranteed funds not yet 10 days old will not be honored in most cases. The
draft writing privilege may be modified or terminated at any time. It may not
always be possible to give all shareholders advance notification of each change
in the draft writing privilege.
Telephone Redemptions: Telephone redemptions are available for shareholders of
the Fund. Records maintained by AEFC will be binding on all parties. Neither
AEFC nor the Fund will be liable for any loss, expense or damage arising in
connection with telephone redemption requests. In order to qualify for this
service, all shares must be held in non-certificate form.
The requesting registered owner must be prepared to provide sufficient
information to enable AEFC to verify the authenticity of the call and to process
the redemption request. All telephone calls will be recorded. Redemption
requests received before the close of business (normally 3 p.m. Central time)
will be processed the same day. For each redemption, a number of shares equal to
the amount of the requested redemption will be redeemed. The following business
day, the redemption proceeds will be mailed to the address of record or
transmitted by Federal Reserve Wire to the bank account designated on the
telephone authorization form, provided AEFC, the Fund, Norwest Bank Minneapolis
and your bank are all open. At the present time there is no additional fee
charged for the wire service, but if such a fee is imposed in the future, an
additional number of shares will be redeemed to cover it.
The telephone redemption privilege may be modified or discontinued at any time.
It may not always be possible to give all shareholders advance notice of each
change in the procedures for telephone redemptions.
During an emergency, the board can suspend computation of the net asset value,
stop accepting payments for purchase of shares or suspend the duty of the Fund
to redeem shares for more than seven days. Such emergency situations would occur
if:
`The Exchange closes for reasons other than the usual weekend and holiday
closings or trading on the Exchange is restricted, or
`Disposal of the Fund's securities is not reasonably practicable, or it is not
reasonably practicable for the Fund to determine the fair value of its net
assets, or
`The SEC, under the provisions of the Investment Company Act of 1940, as amended
(the 1940 Act), declares a period of emergency to exist.
Should the Fund stop selling shares, the board may make a deduction from the
value of the assets held by the Fund to cover the cost of future liquidations of
the assets so as to distribute these costs fairly among all shareholders.
<PAGE>
For this Fund, participants in these qualified plans may be subject to a
deferred sales charge on certain redemptions. The deferred sales charge on
certain redemptions will be waived if the redemption is a result of a
participant's death, disability, retirement, attaining age 59 1/2, loans or
hardship withdrawals. The deferred sales charge varies depending on the number
of participants in the qualified plan and total plan assets as follows:
Deferred sales Charge
Number of Participants
Total Plan Assets 1-99 100 or more
- ----------------- ---- -----------
Less than $1 million 4% 0%
$1 million or more 0% 0%
PAY-OUT PLANS
Shareholders of IDS Cash Management Fund can use any of several pay-out plans to
redeem their investment in regular installments. If you redeem Class B shares
you may be subject to a contingent deferred sales charge as discussed in the
prospectus. While the plans differ on how the pay-out is figured, they all are
based on the redemption of the investment. Net investment income dividends and
any capital gain distributions will automatically be reinvested, unless you
elect to receive them in cash. If a tax-qualified plan account for which
American Express Trust Company acts as custodian is being redeemed, an election
may be made to receive dividends and other distributions in cash when permitted
by law. If an IRA or a qualified retirement account is redeemed, certain
restrictions, federal tax penalties and special federal income tax reporting
requirements may apply. You should consult your tax advisor about this complex
area of the tax law.
To start any of these plans, please write American Express Shareholder Service,
P.O. Box 534, Minneapolis, MN 55440-0534, or call American Express Financial
Advisors Telephone Transaction Service at 800-437-3133 (National/Minnesota) or
612-671-3800 (Mpls./St. Paul). Your authorization must be received in the
Minneapolis headquarters at least five days before the date you want your
payments to begin. The initial payment must be at least $50. Payments will be
made on a monthly, bimonthly, quarterly, semiannual or annual basis. Your choice
is effective until you change or cancel it.
The following pay-out plans are designed to take care of the needs of most
shareholders in a way AEFC can handle efficiently and at a reasonable cost. If
you need a more irregular schedule of payments, it may be necessary for you to
make a series of individual redemptions, in which case you'll have to send in a
separate redemption request for each pay-out. The Fund reserves the right to
change or stop any pay-out plan and to stop making such plans available.
<PAGE>
Plan #1: Pay-out for a fixed period of time
If you choose this plan, a varying number of shares will be redeemed at regular
intervals during the time period you choose. This plan is designed to end in
complete redemption of all shares in your account by the end of the fixed
period.
Plan #2: Redemption of a fixed number of shares
If you choose this plan, a fixed number of shares will be redeemed for each
payment and that amount will be sent to you. The length of time these payments
continue is based on the number of shares in your account.
Plan #3: Redemption of a fixed dollar amount
If you decide on a fixed dollar amount, whatever number of shares is necessary
to make the payment will be redeemed in regular installments until the account
is closed.
Plan #4: Redemption of a percentage of net asset value
Payments are made based on a fixed percentage of the net asset value of the
shares in the account computed on the day of each payment. Percentages range
from 0.25% to 0.75%. For example, if you are on this plan and arrange to take
0.5% each month, you will get $50 if the value of your account is $10,000 on the
payment date.
TAXES
Retirement Accounts
If you have a nonqualified investment in the Fund, you may move part or all of
those shares to an IRA or qualified retirement account in the Fund. However,
this type of exchange is considered a redemption of shares and may result in a
gain or loss for tax purposes.
Since the Fund invests only in money market securities, all income is from
interest or short-term capital gains. Accordingly, distributions of net
investment income do not qualify for the 70% dividends-received deduction for
corporations.
Under federal tax law, by the end of a calendar year the Fund must declare and
pay dividends representing 98% of ordinary income for that calendar year and 98%
of net capital gains (both long-term and short-term) for the 12-month period
ending Oct. 31 of that calendar year. The Fund is subject to an excise tax equal
to 4% of the excess, if any, of the amount required to be distributed over the
amount actually distributed. The Fund intends to comply with federal tax law and
avoid any excise tax.
<PAGE>
This is a brief summary that relates to federal income taxation only.
Shareholders should consult their tax advisor as to the application of federal,
state and local income tax laws to Fund distributions.
AGREEMENTS
Investment Management Services Agreement
The Fund has an Investment Management Services Agreement with AEFC. AEFC is paid
a fee based on the following schedule. Each class of the Fund pays its
proportionate share of the fee.
Assets Annual rate at
(billions) each asset level
- --------- ----------------
First $1.0 0.310%
Next 0.5 0.293
Next 0.5 0.275
Next 0.5 0.258
Over 2.5 0.240
On July 31, 1998, the daily rate applied to the Fund's net assets was equal to
0.270% on an annual basis. The fee is calculated for each calendar day on the
basis of the net assets of the Fund as of the close of business of the full
business day, which is two business days prior to the day for which the
calculation is being made.
The management fee is paid monthly. Under the agreement, the total amount paid
was $9,928,579 for the year ended July 31, 1998, $8,354,016 for fiscal year
1997, and $6,557,898 for fiscal year 1996.
Under the agreement, the Fund also pays taxes, brokerage commissions and
nonadvisory expenses, which include custodian fees; audit and certain legal
fees; fidelity bond premiums; registration fees for shares; office expenses;
consultants' fees; compensation of board members, officers and employees;
corporate filing fees; organizational expenses; expenses incurred in connection
with lending securities of the Fund; and expenses properly payable by the Fund,
approved by the board. Under the agreement, the Fund paid nonadvisory expenses,
net of earnings credits, of $(367,393) for the year ended July 31, 1998,
$1,045,237 for fiscal year 1997, and $1,851,127 for fiscal year 1996.
<PAGE>
Administrative Services Agreement
The Fund has an Administrative Services Agreement with AEFC. Under this
agreement, the Fund pays AEFC for providing administration and accounting
services. The fee is calculated as follows:
Assets Annual rate
(billions) each asset level
- --------- ----------------
First $1.0 0.030%
Next 0.5 0.027
Next 0.5 0.025
Next 0.5 0.022
Over 2.5 0.020
On July 31, 1998, the daily rate applied to the Fund's net assets was equal to
0.024% on an annual basis. The fee is calculated for each calendar day on the
basis of net assets as of the close of business two business days prior to the
day for which the calculation is made. Under the agreement, the Fund paid fees
of $942,396 for the fiscal year ended July 31, 1998.
Transfer Agency Agreement
The Fund has a Transfer Agency Agreement with American Express Client Service
Corporation (AECSC). This agreement governs AECSC's responsibility for
administering and/or performing transfer agent functions, for acting as service
agent in connection with dividend and distribution functions and for performing
shareholder account administration agent functions in connection with the
issuance, exchange and redemption or repurchase of the Fund's shares. Under the
agreement, AECSC will earn a fee from the Fund determined by multiplying the
number of shareholder accounts at the end of the day by a rate determined for
each class and dividing by the number of days in the year. The rate for Class A
and Class Y is $20 per year and for Class B is $21 per year. The fees paid to
AECSC may be changed from time to time upon agreement of the parties without
shareholder approval. Under the agreement, the Fund paid fees of $7,089,268 for
the fiscal year ended July 31, 1998.
Distribution Agreement
For an explanation of the Fund's Distribution Agreement, please see your
prospectus.
Plan and Agreement of Distribution
For Class B shares, to help AEFA defray the cost of distribution and servicing,
not covered by the sales charges received under the Distribution Agreement, the
Fund and AEFA entered into a Plan and Agreement of Distribution (Plan). These
costs cover
<PAGE>
almost all aspects of distributing the Fund shares except compensation to the
sales force. A substantial portion of the costs are not specifically identified
to any one fund in the IDS MUTUAL FUND GROUP. Under the Plan, AEFA is paid a fee
at an annual rate of 0.75% of the Fund's average daily net assets attributable
to Class B shares.
The Plan must be approved annually by the board, including a majority of the
disinterested board members, if it is to continue for more than a year. At least
quarterly, the board must review written reports concerning the amounts expended
under the Plan and the purposes for which such expenditures were made. The Plan
and any agreement related to it may be terminated at any time by vote of a
majority of board members who are not interested persons of the Fund and have no
direct or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan, or by vote of a majority of the outstanding
voting securities of the Fund's Class B shares or by AEFA. The Plan (or any
agreement related to it) will terminate in the event of its assignment, as that
term is defined in the 1940 Act. The Plan may not be amended to increase the
amount to be spent for distribution without shareholder approval, and all
material amendments to the Plan must be approved by a majority of the board
members, including a majority of the board members who are not interested
persons of the Fund and who do not have a financial interest in the operation of
the Plan or any agreement related to it. The selection and nomination of
disinterested board members is the responsibility of the other disinterested
board members. No board member who is not an interested person, has any direct
or indirect financial interest in the operation of the Plan or any related
agreement. For the fiscal year ended July 31, 1998, under the agreement, the
Fund paid fees of $863,705.
Custodian Agreement
The Fund's securities and cash are held by American Express Trust Company, 1200
Northstar Center West, 625 Marquette Ave., Minneapolis, MN 55402-2307, through a
custodian agreement. The custodian is permitted to deposit some or all of its
securities in central depository systems as allowed by federal law. For its
services, the Fund pays the custodian a maintenance charge and a charge per
transaction in addition to reimbursing the custodian's out-of-pocket expenses.
Total fees and expenses
The Fund paid total fees and nonadvisory expenses, net of earnings credits, of
$18,456,555 for the fiscal year ended July 31, 1998.
<PAGE>
ORGANIZATIONAL INFORMATION
IDS Money Market Series, Inc., of which IDS Cash Management Fund is a part, is
an open-end management investment company, as defined in the 1940 Act.
Originally incorporated on Aug. 22, 1975 in Nevada, IDS Money Market Series,
Inc. changed its state of incorporation on June 13, 1986 by merging into a
Minnesota corporation incorporated on April 7, 1986. The Fund headquarters are
at 901 S. Marquette Ave., Suite 2810, Minneapolis, MN 55402-3268.
BOARD MEMBERS AND OFFICERS
The following is a list of the Fund's board members. They serve 15 Master Trust
portfolios and 47 IDS and IDS Life funds (except for William H. Dudley, who does
not serve on the nine IDS Life fund boards). All shares have cumulative voting
rights with respect to the election of board members.
H. Brewster Atwater, Jr.
Born in 1931
4900 IDS Tower
Minneapolis, MN
Retired chairman and chief executive officer, General Mills, Inc. Director,
Merck & Co., Inc. and Darden Restaurants, Inc.
Lynne V. Cheney'
Born in 1941
American Enterprise Institute
for Public Policy Research (AEI)
1150 17th St., N.W. Washington, D.C.
Distinguished Fellow AEI. Former Chair of National Endowment of the Humanities.
Director, The Reader's Digest Association Inc., Lockheed-Martin and Union
Pacific Resources.
William H. Dudley**
Born in 1932
2900 IDS Tower
Minneapolis, MN
Senior advisor to the chief executive officer of AEFC.
<PAGE>
David R. Hubers+**
Born in 1943
2900 IDS Tower
Minneapolis, MN
President, chief executive officer and director of AEFC.
Heinz F. Hutter+'
Born in 1929
P.O. Box 2187
Minneapolis, MN
Retired president and chief operating officer, Cargill, Incorporated (commodity
merchants and processors).
Anne P. Jones
Born in 1935
5716 Bent Branch Rd.
Bethesda, MD
Attorney and telecommunications consultant. Former partner, law firm of
Sutherland, Asbill & Brennan. Director, Motorola, Inc. (electronics), C-Cor
Electronics, Inc., and Amnex, Inc. (communications).
William R. Pearce+*
Born in 1927
901 S. Marquette Ave.
Minneapolis, MN
Chairman of the board, Board Services Corporation (provides administrative
services to boards). Director, trustee and officer of registered investment
companies whose boards are served by the company. Retired vice chairman of the
board, Cargill, Incorporated (commodity merchants and processors).
Alan K. Simpson'
Born in 1931
1201 Sunshine Ave.
Cody, WY
Former three-term United States Senator for Wyoming. Former Assistant Republican
Leader, U.S. Senate. Director, PacifiCorp (electric power) and Biogen
(pharmaceuticals).
<PAGE>
Edson W. Spencer+
Born in 1926
4900 IDS Center
80 S. 8th St.
Minneapolis, MN
President, Spencer Associates Inc. (consulting). Retired chairman of the board
and chief executive officer, Honeywell Inc. Director, Boise Cascade Corporation
(forest products). Member of International Advisory Council of NEC (Japan).
John R. Thomas**
Born in 1937
2900 IDS Tower
Minneapolis, MN
Senior vice president of AEFC.
Wheelock Whitney+
Born in 1926
1900 Foshay Tower
821 Marquette Ave.
Minneapolis, MN
Chairman, Whitney Management Company (manages family assets).
C. Angus Wurtele'
Born in 1934
Valspar Corporation
Suite 1700
Foshay Tower
Minneapolis, MN
Chairman of the board and retired chief executive officer, The Valspar
Corporation (paints). Director, Bemis Corporation (packaging), Donaldson Company
(air cleaners & mufflers) and General Mills, Inc.
(consumer foods).
+ Member of executive committee.
' Member of joint audit committee.
* Interested person by reason of being an officer and employee of the Fund.
**Interested person by reason of being an officer, board member, employee and/or
shareholder of AEFC or American Express.
<PAGE>
The board also has appointed officers who are responsible for day-to-day
business decisions based on policies it has established.
In addition to Mr. Pearce, who is chairman of the board and Mr. Thomas, who is
president, the Fund's other officers are:
Leslie L. Ogg
Born in 1938
901 S. Marquette Ave.
Minneapolis, MN
President of Board Services Corporation. Vice president, general counsel and
secretary for the Fund.
Officers who also are officers and/or employees of AEFC
Peter J. Anderson
Born in 1942
IDS Tower 10
Minneapolis, MN
Director and senior vice president-investments of AEFC. Vice
president-investments for the Fund.
Frederick C. Quirsfeld
Born in 1947
IDS Tower 10
Minneapolis, MN
Vice president - taxable mutual fund investments of AEFC. Vice president - fixed
income investments for the Fund.
Matthew N. Karstetter
Born in 1961
IDS Tower 10
Minneapolis, MN
Vice president of Investment Accounting for AEFC since 1996. Prior to joining
AEFC, he served as vice president of State Street Bank's mutual fund service
operation from 1991 to 1996. Treasurer for the Fund.
<PAGE>
COMPENSATION FOR FUND BOARD MEMBERS
Members of the Fund board who are not officers of the Fund or of AEFC receive an
annual fee of $2,000, and the Chair of the Contracts Committee receives an
additional fee of $83. Board members receive a $50 per day attendance fee for
board meetings. The attendance fee for meetings of the Contracts and Investment
Review Committees is $50; for meetings of the Audit Committee and Personnel
Committee $25 and for traveling from out-of-state $20. Expenses for attending
meetings are reimbursed.
During the fiscal year ended July 31, 1998, the independent members of the
board, for attending up to 26 meetings, received the following compensation:
<TABLE>
<CAPTION>
Compensation Table
Total cash
Aggregate compensation from the
Aggregate compensation Pension or Retirement Estimated annual IDS MUTUAL FUND GROUP
compensation from the benefits accrued as benefit upon and Preferred Master
Board member from the Fund Portfolio Fund or Portfolio retirement Trust Group
expenses
- ------------------------- -------------- --------------- ------------------------ ----------------------- -----------------------
<S> <C> <C> <C> <C> <C>
H. Brewster Atwater, Jr. $2,800 $0 $0 $0 $98,400
Lynne V. Cheney 2,770 0 0 0 92,400
Robert F. Froehlke 942 0 0 0 33,300
Heinz F. Hutter 2,850 0 0 0 101,400
Anne P. Jones 2,845 0 0 0 96,900
Melvin R. Laird 645 0 0 0 20,600
Alan K. Simpson 2,625 0 0 0 84,400
Edson W. Spencer 3,042 0 0 0 112,900
Wheelock Whitney 2,900 0 0 0 104,400
C. Angus Wurtele 2,950 0 0 0 107,400
</TABLE>
On July 31, 1998, the Fund's board members and officers as a group owned less
than 1% of the outstanding shares of any class.
INDEPENDENT AUDITORS
The financial statements contained in the Annual Report to shareholders for the
fiscal year ended July 31, 1998 were audited by independent auditors, KPMG Peat
Marwick LLP, 4200 Norwest Center, 90 S. Seventh St., Minneapolis, MN 55402-3900.
The independent auditors also provide other accounting and tax-related services
as requested by the Fund.
FINANCIAL STATEMENTS
The Independent Auditors' Report and the Financial Statements, including Notes
to the Financial Statements and the Schedule of Investments in Securities,
contained in the Annual Report to shareholders for the fiscal year ended July
31, 1998 pursuant to Section 30(d) of the 1940 Act, are hereby incorporated in
this SAI by reference. No other portion of the Annual Report, however, is
incorporated by reference.
<PAGE>
PROSPECTUS
The prospectus for IDS Cash Management Fund, dated Sept. 29, 1998, is hereby
incorporated in this SAI by reference.
<PAGE>
APPENDIX A
DESCRIPTION OF MONEY MARKET SECURITIES
The types of instruments that form the major part of the Fund's investments are
described below.
Certificates of Deposit -- A certificate of deposit is a negotiable receipt
issued by a bank or savings and loan association in exchange for the deposit of
funds. The issuer agrees to pay the amount deposited, plus interest, on the date
specified on the certificate.
Time Deposit -- A time deposit is a non-negotiable deposit in a bank for a fixed
period of time.
Bankers' Acceptances -- A bankers' acceptance arises from a short-term credit
arrangement designed to enable businesses to obtain funds to finance commercial
transactions. It is a time draft drawn on a bank by an exporter or an importer
to obtain a stated amount of funds to pay for specific merchandise. The draft is
then "accepted" by a bank that, in effect, unconditionally guarantees to pay the
face value of the instrument on its maturity date.
Commercial Paper -- Commercial paper is generally defined as unsecured
short-term notes issued in bearer form by large well-known corporations and
finance companies. Maturities on commercial paper range from one day to nine
months.
Commercial paper rated A by Standard & Poor's Corporation has the following
characteristics: Liquidity ratios are better than the industry average.
Long-term senior debt rating is "A" or better. The issuer has access to at least
two additional channels of borrowing. Basic earnings and cash flow have an
upward trend with allowances made for unusual circumstances. Typically, the
issuer's industry is well established, the issuer has a strong position within
its industry and the reliability and quality of management is unquestioned.
Issuers rated A are further rated by use of numbers 1, 2 and 3 to denote
relative strength within this highest classification.
A Prime rating is the highest commercial paper rating assigned by Moody's
Investors Services Inc. Issuers rated Prime are further rated by use of numbers
1, 2 and 3 to denote relative strength within this highest classification. Among
the factors considered by Moody's in assigning ratings for an issuer are the
following: (1) management; (2) economic evaluation of the industry and an
appraisal of speculative type risks which may be inherent in certain areas; (3)
competition and customer acceptance of products; (4) liquidity; (5) amount and
quality of long-term debt; (6) ten year earnings trends; (7) financial strength
of a parent company and the relationships which exist with the issuer; and (8)
recognition by management of obligations which may be present or may arise as a
result of public interest questions and preparations to meet such obligations.
<PAGE>
Letters of Credit -- A letter of credit is a short-term note issued in bearer
form with a bank letter of credit which provides that the bank pay to the bearer
the amount of the note upon presentation.
U.S. Treasury Bills -- Treasury bills are issued with maturities of any period
up to one year. Three-month and six-month bills are currently offered by the
Treasury on 13-week and 26-week cycles respectively and are auctioned each week
by the Treasury. Treasury bills are issued in book entry form and are sold only
on a discount basis, i.e., the difference between the purchase price and the
maturity value constitutes interest income for the investor. If they are sold
before maturity, a portion of the income received may be a short-term capital
gain.
U.S. Government Agency Securities -- Federal agency securities are debt
obligations which principally result from lending programs of the U.S.
government. Housing and agriculture have traditionally been the principal
beneficiaries of Federal credit programs, and agencies involved in providing
credit to agriculture and housing account for the bulk of the outstanding agency
securities.
Repurchase Agreements -- A repurchase agreement involves the acquisition of
securities by the Fund, with the concurrent agreement by a bank (or securities
dealer if permitted by law or regulation), to reacquire the securities at the
Fund's cost, plus interest, within a specified time. The Fund thereby receives a
fixed rate of return on this investment, one that is insulated from market and
rate fluctuations during the holding period. In these transactions, the
securities acquired by the Fund have a total value equal to or in excess of the
value of the repurchase agreement and are held by the Fund's custodian until
required.
Floating rate instruments -- These instruments pay interest at a rate tied to an
external interest rate. The rate changes whenever there is a change in the
external interest rate.
If AEFC becomes aware that a security owned by the Fund is downgraded below the
second highest rating, AEFC will either sell the security or recommend to the
Fund's board why it should not be sold.
<PAGE>
APPENDIX B
DOLLAR-COST AVERAGING
A technique that works well for many investors is one that eliminates random buy
and sell decisions. One such system is dollar-cost averaging. Dollar-cost
averaging involves building a portfolio through the investment of fixed amounts
of money on a regular basis regardless of the price or market condition. This
may enable an investor to smooth out the effects of the volatility of the
financial markets. By using this strategy, more shares will be purchased when
the price is low and less when the price is high. As the accompanying chart
illustrates, dollar-cost averaging tends to keep the average price paid for the
shares lower than the average market price of shares purchased, although there
is no guarantee.
While this technique does not ensure a profit and does not protect against a
loss if the market declines, it is an effective way for many shareholders who
can continue investing on a regular basis through changing market conditions,
including times when the price of their shares falls or the market declines, to
accumulate shares in a fund to meet long-term goals.
Dollar-cost averaging
- ---------------------------- --------------------------- -----------------------
Regular Market Price Shares
Investment of a Share Acquired
- ---------------------------- --------------------------- -----------------------
$100 $6.00 16.7
100 4.00 25.0
100 4.00 25.0
100 6.00 16.7
100 5.00 20.0
---- -------- ------
$500 $25.00 103.4
Average market price of a share over 5 periods:
$5.00 ($25.00 divided by 5).
The average price you paid for each share:
$4.84 ($500 divided by 103.4).
<PAGE>
Independent auditors' report
The board 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, 1998, and
the related statement of operations for the year then ended, the statements
of changes in net assets for each of the years in the two-year period then
ended, and the financial highlights for each of the years in the ten-year
period ended July 31, 1998. 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, 1998, and the results of its operations, changes in its
net assets, 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 4, 1998
<PAGE>
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Cash Management Fund
July 31, 1998
Assets
Investments in securities, at value (Note 1)
<S> <C>
(identified cost $3,974,870,033) $3,974,870,033
Cash in bank on demand deposit 119,484,916
Accrued interest receivable 3,148,553
---------
Total assets 4,097,503,502
-------------
Liabilities
Dividends payable to shareholders 1,611,351
Accrued investment management services fee 30,473
Accrued distribution fee 2,012
Accrued transfer agency fee 21,258
Accrued administrative services fee 2,724
Other accrued expenses 90,918
------
Total liabilities 1,758,736
---------
Net assets applicable to outstanding capital stock $4,095,744,766
==============
Represented by
Capital stock-- $.01 par value (Note 1) $ 40,958,506
Additional paid-in capital 4,054,822,333
Undistributed net investment income 459
Accumulated net realized gain (loss) (36,532)
-------
Total-- representing net assets applicable to outstanding capital stock $4,095,744,766
==============
Net assets applicable to outstanding shares: Class A $3,925,753,470
Class B $ 97,608,056
Class Y $ 72,383,240
Net asset value per share of outstanding capital stock: Class A shares 3,925,778,122 $ 1.00
Class B shares 97,654,880 $ 1.00
Class Y shares 72,417,600 $ 1.00
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of operations
IDS Cash Management Fund
Year ended July 31, 1998
Investment income
Income:
<S> <C>
Interest $204,319,887
------------
Expenses (Note 2):
Investment management services fee 9,928,579
Distribution fee-- Class B 863,705
Transfer agency fee 7,079,102
Incremental transfer agency fee-- Class B 10,166
Administrative services fees and expenses 942,396
Compensation of board members 24,367
Custodian fees 253,421
Postage 843,000
Registration fees 953,688
Reports to shareholders 352,000
Audit fees 33,500
Other 4,823
-----
Total expenses 21,288,747
Earnings credits on cash balances (Note 2) (2,832,192)
----------
Total net expenses 18,456,555
----------
Investment income (loss)-- net 185,863,332
-----------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on security transactions ( Note 3) (14,033)
-------
Net increase (decrease) in net assets resulting from operations $185,849,299
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Cash Management Fund
Year ended July 31,
Operations and distributions
1998 1997
<S> <C> <C>
Investment income (loss)-- net $ 185,863,332 $ 145,783,026
Net realized gain (loss) on security transactions (14,033) 361
------- ---
Net increase (decrease) in net assets resulting from operations 185,849,299 145,783,387
----------- -----------
Distributions to shareholders from:
Net investment income
Class A (176,898,260) (133,616,882)
Class B (5,060,497) (8,786,661)
Class Y (3,905,091) (3,374,403)
---------- ----------
Total distributions (185,863,848) (145,777,946)
------------ ------------
Capital share transactions at constant $1 net asset value
Proceeds from sales
Class A shares 14,512,175,142 9,587,486,301
Class B shares 160,192,750 263,976,722
Class Y shares 153,296,666 126,673,627
Reinvestment of distributions at net asset value
Class A shares 173,914,283 129,747,271
Class B shares 5,007,204 8,706,594
Class Y shares 3,791,823 3,018,917
Payments for redemptions
Class A shares (13,854,237,469) (8,958,744,870)
Class B shares (Note 2) (214,354,911) (399,060,300)
Class Y shares (146,664,783) (124,384,459)
------------ ------------
Increase (decrease) in net assets from capital share transactions 793,120,705 637,419,803
----------- -----------
Total increase (decrease) in net assets 793,106,156 637,425,244
Net assets at beginning of year 3,302,638,610 2,665,213,366
------------- -------------
Net assets at end of year $ 4,095,744,766 $3,302,638,610
=============== ==============
Undistributed net investment income $ 459 $ 975
--------------- --------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to financial statements
IDS Cash Management Fund
1
Summary of
significant
accounting policies
The Fund is a series of IDS Money Market Series, Inc. and is registered
under the Investment Company Act of 1940 (as amended) as a diversified,
open-end management investment company. The Fund invests in money market
securities. IDS Money Market Series, Inc. has 10 billion authorized shares
of capital stock that can be allocated among the separate series as
designated by the board. The Fund offers Class A, Class B and Class Y
shares. Class A shares have no sales charge. Class B shares may be subject
to a contingent deferred sales charge and such shares automatically convert
to Class A shares during the ninth calendar year of ownership. Class Y
shares 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.
On the statement of assets and liabilities, as a result of permanent
book-to-tax differences, accumulated net realized loss has been decreased
by $4,501 and paid-in capital has been decreased by $4,501.
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.
<PAGE>
2
Expenses and
sales charges
Effective March 20, 1995, the Fund entered into agreements with American
Express Financial Corporation (AEFC) for managing its portfolio and
providing administrative services. Under an 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 a fee 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. Additional administrative service expenses paid by the Fund are
office expenses, consultants' fees and compensation of officers and
employees. Under this agreement, the Fund also pays taxes, audit and
certain legal fees, registration fees for shares, compensation of board
members, corporate filing fees, organizational expenses and any other
expenses properly payable by the Fund and approved by the board.
Under a separate Transfer Agency Agreement, American Express Client Service
Corporation (AECSC) maintains shareholder accounts and records. The Fund
pays AECSC 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. 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.
Sales charges received by American Express Financial Advisors Inc. for
distributing Class B shares were $749,999 for the year ended July 31, 1998.
During the year ended July 31, 1998, the Fund's custodian and transfer
agency fees were reduced by $2,832,192 as a result of earnings credits from
overnight cash balances.
3
Securities
transactions
Cost of purchases and proceeds from sales of securities aggregated
$25,686,931,440 and $24,982,538,172, respectively, for the year ended July
31, 1998. Realized gains and losses are determined on an identified cost
basis.
4
Financial
highlights
"Financial highlights" showing per share data and selected information is
presented on pages 6 and 7 of the prospectus.
<PAGE>
Investments in securities
IDS Cash Management Fund
July 31, 1998
(Percentages represent
value of investments
compared to net assets)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
U.S. government agency (--%)
Federal Home Loan Mtge Corp Disc Nt
08-20-98 5.49% $1,000,000 $997,118
Total U.S. government agency
(Cost: $997,118) $997,118
Certificates of deposit (4.7%)
Canadian Imperial Bank Yankee
08-25-98 5.58 15,000,000 15,000,000
09-02-98 5.58 25,000,000 25,000,000
10-14-98 5.57 20,000,000 20,000,000
04-01-99 5.75 10,000,000 9,996,722
Credit Agricole Yankee
05-19-99 5.75 10,000,000 9,993,695
Montreal Bank Yankee
05-10-99 5.75 10,000,000 9,996,302
Swiss Bank Yankee
04-29-99 5.82 10,000,000 9,996,803
U.S. Bank Minneapolis
09-29-98 5.61 9,100,000 9,100,000
10-19-98 5.61 25,000,000 25,000,000
10-21-98 5.62 21,900,000 21,900,000
04-23-99 5.80 10,000,000 10,000,000
Westdeutsche Landesbank Yankee
08-03-98 5.57 25,000,000 25,000,000
Total certificates of deposit
(Cost: $190,983,522) $190,983,522
Commercial paper (84.6%)
Automotive & related (5.5%)
Daimler-Benz
08-12-98 5.60 7,400,000 7,387,406
10-07-98 5.57 20,000,000 19,795,278
11-06-98 5.59 19,600,000 19,309,539
11-16-98 5.58 23,900,000 23,510,721
Ford Motor Credit
08-06-98 5.53 12,500,000 12,490,434
08-07-98 5.53 18,300,000 18,283,194
08-12-98 5.53 11,200,000 11,181,144
Toyota Motor Credit
08-03-98 5.57 17,800,000 17,794,541
08-03-98 5.58 18,900,000 18,894,214
08-10-98 5.54 17,100,000 17,076,402
09-14-98 5.57 20,000,000 19,864,822
09-16-98 5.56 25,000,000 24,823,987
09-23-98 5.57 15,000,000 14,878,100
Total 225,289,782
Banks and savings & loans (11.7%)
ABN Amro Canada
08-06-98 5.52 20,000,000 19,984,667
<PAGE>
Bank of America
10-22-98 6.00 10,000,000 9,998,926
02-26-99 5.67 10,000,000 9,997,804
BBV Finance (Delaware)
08-05-98 5.52 12,000,000 11,992,667
10-05-98 5.56 20,000,000 19,804,639
10-15-98 5.57 25,000,000 24,713,541
Commerzbank U.S. Finance
08-05-98 5.53 34,500,000 34,478,877
09-18-98 5.55 12,600,000 12,507,600
10-16-98 5.57 28,900,000 28,564,438
10-16-98 5.58 23,400,000 23,127,806
Deutsche Bank Financial
08-10-98 5.55 24,000,000 23,966,760
Dresdner US Finance
09-08-98 5.55 25,000,000 24,854,861
First Union Natl Bank
11-16-98 5.60 20,000,000 20,000,000
Fleet Funding
08-13-98 5.57 20,116,000(b) 20,078,986
08-18-98 5.56 18,689,000(b) 18,640,196
08-28-98 5.55 15,000,000(b) 14,937,900
Kredietbank North America Finance
08-11-98 5.56 14,000,000 13,978,767
10-19-98 5.67 15,000,000 14,818,300
Natl Australia Funding (Delaware)
09-15-98 5.58 22,000,000 21,848,613
10-13-98 5.59 20,000,000 19,779,378
NBD Bank Canada
10-16-98 5.58 16,100,000 15,912,721
Westpac Capital
08-10-98 5.56 30,000,000 29,959,049
09-09-98 5.56 25,000,000 24,850,771
11-30-98 5.60 22,200,000 21,789,608
Total 480,586,875
Broker dealers (14.5%)
Goldman Sachs Group
08-10-98 5.56 25,000,000 24,965,563
08-18-98 5.58 25,000,000 24,934,951
08-18-98 5.59 20,100,000 20,047,606
08-19-98 5.58 25,000,000 24,931,125
Merrill Lynch
08-05-98 5.59 15,430,000 15,420,485
08-17-98 5.59 20,000,000 19,950,932
09-04-98 5.60 15,000,000 14,922,792
09-18-98 5.59 15,000,000 14,891,200
10-16-98 5.59 10,000,000 9,885,367
11-12-98 5.61 10,000,000 9,844,355
11-20-98 5.67 10,000,000 9,830,725
11-27-98 5.61 18,000,000(c) 18,000,000
12-10-98 5.61 10,000,000 9,803,864
12-11-98 5.61 10,000,000 9,802,367
12-15-98 5.62 10,000,000 9,796,000
01-19-99 5.61 19,000,000(c) 19,000,000
01-25-99 5.61 18,000,000(c) 18,000,000
Morgan Stanley, Dean Witter
11-25-98 5.62 10,000,000(c) 10,000,000
Morgan Stanley, Dean Witter, Discover & Co
08-12-98 5.59 10,000,000 9,983,103
08-14-98 5.58 23,600,000 23,553,041
09-04-98 5.58 20,000,000 19,895,544
10-23-98 5.59 9,000,000 8,887,120
10-26-98 5.58 20,000,000 19,737,222
Salomon Smith Barney
10-01-98 5.58 19,100,000 18,921,351
10-02-98 5.58 25,000,000 24,762,333
10-06-98 5.58 25,000,000 24,747,458
10-14-98 5.58 25,000,000 24,717,361
10-16-98 5.58 18,800,000 18,581,711
10-22-98 5.58 25,300,000 24,982,471
10-23-98 5.59 20,000,000 19,745,467
11-05-98 5.59 25,000,000 24,633,333
UBS Finance (Delaware)
08-04-98 5.67 10,000,000 9,995,275
08-07-98 5.52 25,000,000 24,977,083
09-08-98 5.57 10,200,000 10,140,622
Total 592,287,827
<PAGE>
Building materials & construction (2.6%)
Compagnie de Saint-Gobain
08-04-98 5.57 22,600,000(b) 22,589,604
08-11-98 5.52 25,000,000(b) 24,961,667
09-01-98 5.58 22,000,000(b) 21,895,616
11-25-98 5.49 25,000,000(b) 24,557,750
12-22-98 5.48 13,535,000(b) 13,240,373
Total 107,245,010
Chemicals (0.5%)
Bayer
08-25-98 5.59 18,900,000(b) 18,830,448
Commercial finance (5.9%)
CAFCO
08-05-98 5.56 18,600,000(b) 18,588,675
08-05-98 5.57 11,200,000(b) 11,193,131
08-12-98 5.57 9,600,000 9,583,808
08-20-98 5.57 18,000,000(b) 17,947,560
08-25-98 5.55 30,000,000(b) 29,889,599
Ciesco LP
08-07-98 5.57 25,000,000 24,977,042
08-21-98 5.58 15,000,000(b) 14,954,083
10-21-98 5.58 20,000,000(b) 19,752,500
New Center Asset Trust
08-07-98 5.55 22,000,000 21,979,980
08-17-98 5.58 25,000,000 24,938,778
08-18-98 5.58 25,000,000 24,934,951
09-03-98 5.59 24,000,000 23,879,220
Total 242,619,327
Communications equipment & services (0.8%)
BellSouth Capital Funding
08-05-98 5.53 14,581,000(b) 14,572,073
BellSouth Telecommunications
08-19-98 5.58 7,900,000 7,877,999
U S WEST Communications
08-13-98 5.52 12,000,000 11,978,000
Total 34,428,072
Energy (1.3%)
Chevron Transport
08-17-98 5.52 10,000,000 9,975,467
08-18-98 5.58 10,000,000(b) 9,973,933
08-21-98 5.52 10,000,000(b) 9,969,333
11-13-98 5.51 15,000,000(b) 14,761,234
Chevron UK
10-15-98 5.51 10,000,000 9,885,208
Total 54,565,175
Financial services (21.5%)
Associates Corp North America
08-07-98 5.57 30,000,000 29,972,500
08-10-98 5.56 20,000,000 19,972,500
08-21-98 5.59 25,000,000 24,923,333
10-27-98 5.58 13,800,000 13,616,575
Avco Financial Services
08-13-98 5.57 14,000,000 13,974,333
08-26-98 5.57 12,100,000 12,053,785
09-08-98 5.59 13,000,000 12,924,390
Bear Stearns
10-02-98 5.58 30,000,000 29,715,317
10-08-98 5.59 25,000,000 24,739,333
10-30-98 5.61 25,000,000 24,655,000
11-05-98 5.60 20,000,000 19,706,133
11-19-98 5.61 23,900,000 23,498,347
Beneficial
08-14-98 5.59 29,300,000 29,241,595
08-31-98 5.60 10,000,000 9,953,917
09-04-98 5.59 15,000,000 14,921,800
CIT Group Holdings
08-24-98 5.59 23,000,000 22,919,033
08-28-98 5.58 14,200,000 14,141,425
09-11-98 5.57 21,000,000 20,867,741
Commercial Credit
08-04-98 5.58 15,000,000 14,993,100
08-14-98 5.58 12,600,000 12,574,929
08-27-98 5.58 20,000,000 19,920,267
09-04-98 5.58 16,600,000 16,513,615
CXC
08-03-98 5.55 7,900,000(b) 7,897,573
08-03-98 5.57 5,000,000(b) 4,998,458
08-11-98 5.57 9,100,000(b) 9,085,996
08-14-98 5.56 10,900,000(b) 10,878,233
08-14-98 5.56 10,100,000 10,079,831
08-28-98 5.57 25,000,000(b) 24,896,125
10-07-98 5.59 19,000,000(b) 18,804,453
10-13-98 5.58 23,800,000(b) 23,534,564
<PAGE>
Delaware Funding
08-04-98 5.60 7,500,000(b) 7,496,500
08-17-98 5.58 10,115,000(b) 10,090,185
08-20-98 5.58 13,500,000(b) 13,460,741
08-31-98 5.56% 10,393,000(b) 10,345,106
08-31-98 5.57 1,000,000(b) 995,383
09-10-98 5.58 8,800,000(b) 8,745,733
09-11-98 5.59 10,352,000(b) 10,286,449
09-18-98 5.58 25,000,000(b) 24,815,999
10-19-98 5.58 20,700,000(b) 20,449,708
10-20-98 5.57 12,516,000(b) 12,363,027
10-28-98 5.59 12,170,000(b) 12,005,786
Household Finance
08-06-98 5.57 15,900,000 15,887,832
08-14-98 5.58 30,000,000 29,940,200
Intl Lease Finance
08-11-98 5.56 10,000,000 9,984,833
08-19-98 5.54 11,500,000 11,468,318
10-09-98 5.57 17,675,000 17,488,676
10-22-98 5.57 15,200,000 15,009,578
Natl Rural Utilities
10-26-98 5.59 12,400,000 12,236,485
10-29-98 5.58 15,000,000 14,796,042
Natl Rural Utilities Finance
08-17-98 5.55 18,000,000 17,956,000
10-14-98 5.57 18,000,000 17,796,500
Paccar Financial
08-06-98 5.52 20,000,000 19,984,722
USAA Capital
08-04-98 5.53 10,000,000 9,995,408
08-17-98 5.58 8,000,000 7,980,409
Xerox Credit
09-02-98 5.57 15,000,000 14,926,400
Total 882,480,221
Food (0.8%)
Cargill
08-03-98 5.63 19,500,000 19,493,901
Cargill Global
08-13-98 5.53 12,300,000(b) 12,277,409
Total 31,771,310
Health care (3.0%)
Abbott Laboratories
08-05-98 5.70 16,649,000 16,638,456
Becton Dickinson
08-03-98 5.65 20,000,000 19,993,722
08-04-98 5.53 4,500,000 4,497,934
Glaxo Wellcome
08-26-98 5.59 8,300,000(b) 8,267,895
Novartis Finance
08-12-98 5.57 5,200,000 5,191,229
08-13-98 5.57 19,500,000 19,464,120
09-03-98 5.59 20,000,000(b) 19,898,067
SmithKline Beecham
10-16-98 5.58 30,000,000 29,651,666
Total 123,603,089
Insurance (4.4%)
AIG Funding
10-08-98 5.57% $5,700,000 $5,640,783
American General
08-21-98 5.58 22,000,000 21,932,778
09-04-98 5.58 15,000,000 14,921,942
11-13-98 5.60 23,500,000(b) 23,125,932
American General Finance
08-06-98 5.58 20,000,000 19,984,750
08-17-98 5.58 20,000,000 19,950,933
09-22-98 5.60 20,000,000(b) 19,840,244
11-12-98 5.60 24,000,000(b) 23,621,647
Lincoln Natl
08-19-98 5.58 10,000,000(b) 9,972,450
St. Paul Companies
08-20-98 5.53 20,000,000(b) 19,941,944
Total 178,933,403
<PAGE>
Media (2.0%)
Reed Elsevier
09-18-98 5.57 25,000,000(b) 24,816,000
10-08-98 5.57 20,000,000(b) 19,792,222
10-19-98 5.58 35,800,000(b) 35,367,365
Total 79,975,587
Metals (2.1%)
Alcoa Aluminum Co of America
10-08-98 5.57 16,000,000 15,833,778
10-14-98 5.57 18,300,000 18,093,108
10-30-98 5.58 22,800,000 22,486,500
11-05-98 5.58 10,000,000 9,853,333
11-12-98 5.60 20,000,000 19,684,705
Total 85,951,424
Multi-industry conglomerates (4.1%)
General Electric
08-27-98 5.57 18,400,000 18,326,247
General Electric Capital
08-04-98 5.56 25,000,000 24,988,604
08-19-98 5.57 20,000,000 19,944,800
08-21-98 5.58 15,000,000 14,954,167
09-15-98 5.57 15,000,000 14,896,500
09-18-98 5.59 3,200,000 3,176,320
09-25-98 5.62 20,000,000 19,831,944
General Electric Capital Services
08-07-98 5.59 15,000,000 14,986,200
08-20-98 5.58 15,000,000 14,956,379
08-21-98 5.56 20,000,000 19,939,333
Total 166,000,494
Utilities -- electric (0.6%)
Alabama Power
10-27-98 5.58 25,820,000 25,476,809
Utilities -- gas (0.1%)
Gateway Fuel
09-03-98 5.58 4,331,000 4,308,966
Utilities -- telephone (3.2%)
Ameritech Capital Funding
08-20-98 5.55 34,500,000(b) 34,399,308
Bell Atlantic Financial
08-11-98 5.61 16,855,000 16,828,781
GTE Funding
08-04-98 5.55 7,000,000 6,996,774
08-11-98 5.55 6,800,000 6,789,554
08-12-98 5.54 12,000,000 11,979,760
08-18-98 5.55 30,000,000 29,921,659
08-24-98 5.59 13,000,000 12,953,738
08-26-98 5.59 10,000,000 9,961,319
Total 129,830,893
<PAGE>
Total commercial paper
(Cost: $3,464,184,712) $3,464,184,712
Letters of credit (7.8%)
ABN Amro-
Louis Dreyfus
08-28-98 5.54 20,000,000 19,916,900
Bank of America-
AES Hawaii
08-06-98 5.56 19,936,000 19,920,716
Bank of America-
Orix America
10-09-98 5.57 10,000,000(b) 9,897,075
10-09-98 5.58 10,000,000(b) 9,897,075
Barclays Bank-
Banco BCN Barclays (Bahamas)
12-17-98 5.67 20,000,000 19,576,034
12-18-98 5.70 10,000,000 9,785,708
Canadian Imperial Bank-
Commed Fuel
08-20-98 5.52 11,356,000 11,322,916
10-26-98 5.51 8,640,000 8,526,274
Chase Manhattan-
Somerset Railroad
09-02-98 5.57 17,900,000 17,811,852
Credit Agricole-
Louis Dreyfus
08-07-98 5.54 15,000,000 14,986,150
09-03-98 5.55 10,000,000 9,949,125
Dresdner Bank-
ContiFinancial
08-04-98 5.50 15,000,000 14,993,125
08-25-98 5.52 8,000,000 7,970,560
08-25-98 5.58 13,500,000 13,450,140
09-01-98 5.60 20,000,000 19,904,072
09-02-98 5.52 20,000,000 19,901,867
09-03-98 5.52 23,900,000 23,779,065
First Chicago-
Commed Fuel
09-11-98 5.58 19,593,000 19,469,602
10-26-98 5.59 19,818,000 19,557,140
Toronto Dominion Bank-
Presbyterian Healthcare Services
09-16-98 5.53 20,000,000 19,858,678
Union Bank Switzerland-
River Fuel Trust
08-13-98 5.60 8,246,000(b) 8,230,607
Total letters of credit
(Cost: $318,704,681) $318,704,681
Total investments in securities
(Cost: $3,974,870,033)(d) $3,974,870,033
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 either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on July 31, 1998.
(d) Also represents the cost of securities for federal income tax purposes at
July 31, 1998.
<PAGE>
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits:
(a) Financial Statements included in Part B of this Registration Statement:
- Independent Auditors' Report dated September 4, 1998
- Statement of Assets and Liabilities, July 31, 1998
- Statement of Operations, Year ended July 31, 1998
- Statements of Changes in Net Assets, for the two-year period
ended July 31, 1998 and July 31, 1997
- Notes to Financial Statements
- Investments in Securities, July 31, 1998
- Notes to Investments in Securities
(b) EXHIBITS:
1. Articles of Incorporation, as amended Nov. 14, 1991, filed as Exhibit No. 1
to Registrant's Post-Effective Amendment No. 34 to Registration Statement
No. 2-54516, is incorporated herein by reference.
2. By-laws, as amended January 12, 1989, filed as Exhibit No. 2 to
Registrant's Post-Effective Amendment No. 24 to Registration Statement No.
2-54516, is incorporated herein by reference.
3. Not Applicable.
4. Copy of Stock certificate, filed as Exhibit 4 to Registrant's Amendment No.
12 to Registration Statement No. 2-54516 dated September 18, 1982, is
incorporated herein by reference.
5. Copy of Investment Management Services Agreement between Registrant and
American Express Financial Corporation, dated March 20, 1995, and filed
electronically as Exhibit 5 to Registrant's Amendment No. 47 to
Registration Statement No. 2-54516 is incorporated herein by reference.
6. Copy of Distribution Agreement between Registrant and American Express
Financial Advisors, Inc. dated March 20, 1995, and filed electronically as
Exhibit 6 to Registrant's Amendment No. 47 to Registration Statement No.
2-54516 is incorporated herein by reference.
7. All employees are eligible to participate in a profit sharing plan. Entry
into the plan is Jan. 1 or July 1. The Registrant contributes each year an
amount up to 15 percent of their annual salaries, the maximum deductible
amount permitted under Section 404(a) of the Internal Revenue Code.
8(a).Copy of Custodian Agreement between Registrant and American Express Trust
Company, dated March 20, 1995, and filed electronically as Exhibit 8(a) to
Registrant's Amendment No. 47 to Registration Statement No. 2-54516 is
incorporated herein by reference.
<PAGE>
8(b).Copy of Custody Agreement between Morgan Stanley Trust Company and IDS
Bank & Trust dated May, 1993, filed electronically as Exhibit 8(b) to
Registrant's Post-Effective Amendment No. 43 to Registration Statement No.
2-54516, is incorporated herein by reference.
8(c).Copy of Custodian Agreement Amendment between Registrant and American
Express Trust Company, dated Oct. 9, 1997 is filed electronically herewith.
9(a).Copy of Plan and Agreement of Merger dated April 10, 1986, filed as
Exhibit 9 to Registrant's Post-Effective Amendment No. 19 to Registration
Statement No. 2-54516, is incorporated herein by reference.
9(b).Copy of Transfer Agency Agreement between Registrant and American Express
Financial Corporation, dated March 20, 1995, and filed electronically as
Exhibit 9(b) to Registrant's Amendment No. 47 to Registration Statement No.
2-54516 is incorporated herein by reference.
9(c).Copy of License Agreement between the Registrant and IDS Financial
Corporation dated Jan. 25, 1988, filed electronically as Exhibit 9(c) to
Registrant's Post-Effective Amendment No. 26 to Registration Statement No.
2-54516, is incorporated herein by reference.
9(d).Copy of Administrative Services Agreement between Registrant and American
Express Financial Corporation, dated March 20, 1995, and filed
electronically as Exhibit 9(e) to Registrant's Amendment No. 47 to
Registration Statement No. 2-54516 is incorporated herein by reference.
9(e).Copy of Agreement and Plan of Reorganization, dated Sept. 8, 1994, between
IDS Cash Management Fund, a series of IDS Money Market Series, Inc. and IDS
Planned Investment Account, also a series of IDS Money Market Series, Inc.,
filed electronically as Exhibit 4 to Registrant's Pre-Effective Amendment
No. 1 on Form N-14, is incorporated herein by reference.
10. Opinion and consent of counsel as to the legality of the securities being
registered is filed electronically herewith.
11. Independent Auditors' Consent, is filed electronically herewith.
12. None.
13. Not applicable.
14. Forms of Keogh, IRA and other retirement plans, filed as Exhibits 14(a)
through 14(n) to IDS Growth Fund, Inc., Post-Effective Amendment No. 34 to
Registration Statement No. 2-38355, are incorporated herein by reference.
15. Copy of Plan and Agreement of Distribution between Registrant and American
Express Financial Advisors Inc., dated March 20, 1995, and filed
electronically as Exhibit 15 to Registrant's Amendment No. 47 to
Registration Statement No. 2-54516 is incorporated herein by reference.
<PAGE>
16. Copy of schedule for computation of each performance quotation provided in
the Registration Statement in response to Item 22, filed as Exhibit 16 to
Post-Effective Amendment No. 35 is incorporated herein by reference.
17. Financial Data Schedule, is filed electronically herewith.
18. Copy of plan pursuant to Rule 18f-3 under the 1940 Act is filed
electronically as Exhibit 18 to Registrant's Post-Effective Amendment No.
43 to Registration Statement No. 2-54516, is incorporated herein by
reference.
19(a). Directors' Power of Attorney to sign Amendment to this Registration
Statement dated January 7, 1998, is filed electronically herewith.
19(b). Officers' Power of Attorney, dated Nov. 1, 1995, to sign Amendments to
this Registration Statement, filed as Exhibit 19(b) to Registrant's
Post-Effective Amendment No. 45, is incorporated herein by reference.
Item 25. Persons Controlled by or Under Common Control with Registrant.
None.
Item 26. Number of Holders of Securities.
(1) (2)
Number of Record
Holders as of
Title of Class Sept. 16, 1998
Class A 367,924
Class B 9,524
Class Y 15,361
Item 27. Indemnification
The Articles of Incorporation of the registrant provide that the Fund shall
indemnify any person who was or is a party or is threatened to be made a party,
by reason of the fact that she or he is or was a director, officer, employee or
agent of the Fund, or is or was serving at the request of the Fund as a
director, officer, employee or agent of another company, partnership, joint
venture, trust or other enterprise, to any threatened, pending or completed
action, suit or proceeding, wherever brought, and the Fund may purchase
liability insurance and advance legal expenses, all to the fullest extent
permitted by the laws of the State of Minnesota, as now existing or hereafter
amended. The By-laws of the registrant provide that present or former directors
or officers of the Fund made or threatened to be made a party to or involved
(including as a witness) in an actual or threatened action, suit or proceeding
shall be indemnified by the Fund to the full extent authorized by the Minnesota
Business Corporation Act, all as more fully set forth in the By-laws filed as an
exhibit to this registration statement.
<PAGE>
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
Any indemnification hereunder shall not be exclusive of any other rights of
indemnification to which the directors, officers, employees or agents might
otherwise be entitled. No indemnification shall be made in violation of the
Investment Company Act of 1940.
<TABLE>
<CAPTION>
Item 28. Business and Other Connections of Investment Adviser (American Express Financial Corporation)
Directors and officers of American Express Financial Corporation who are directors and/or officers of one or more
other companies:
<S> <C> <C> <C>
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Name and Title Other company(s) Address Title within other
company(s)
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Ronald G. Abrahamson, American Express Client IDS Tower 10 Director and Vice President
Vice President Service Corporation Minneapolis, MN 55440
American Express Financial Vice President
Advisors Inc.
North Dakota Public Director and Vice President
Employee Payment Company
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Douglas A. Alger, American Express Financial IDS Tower 10 Senior Vice President
Senior Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Peter J. Anderson, Advisory Capital Strategies IDS Tower 10 Director
Director and Senior Vice Group Inc. Minneapolis, MN 55440
President
American Express Asset Director and Chairman of
Management Group Inc. the Board
American Express Asset Director, Chairman of the
Management International, Board and Executive Vice
Inc. President
American Express Financial Senior Vice President
Advisors Inc.
IDS Capital Holdings Inc. Director and President
IDS Futures Corporation Director
NCM Capital Management 2 Mutual Plaza Director
Group, Inc. 501 Willard Street
Durham, NC 27701
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Ward D. Armstrong, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
American Express Service Vice President
Corporation
American Express Trust Director and Chairman of
Company the Board
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
John M. Baker, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
American Express Trust Senior Vice President
Company
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Joseph M. Barsky III, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Timothy V. Bechtold, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
IDS Life Insurance Company Executive Vice President
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
John C. Boeder, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
IDS Life Insurance Company Box 5144 Director
of New York Albany, NY 12205
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Douglas W. Brewers, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Karl J. Breyer, American Express Financial IDS Tower 10 Senior Vice President
Director, Senior Vice Advisors Inc. Minneapolis, MN 55440
President
American Express Minnesota Director
Foundation
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Daniel J. Candura, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Cynthia M. Carlson, American Enterprise IDS Tower 10 Director, President and
Vice President Investment Services Inc. Minneapolis, MN 55440 Chief Executive Officer
American Express Financial Vice President
Advisors Inc.
American Express Service Vice President
Corporation
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Mark W. Carter, American Express Financial IDS Tower 10 Senior Vice President and
Senior Vice President and Advisors Inc. Minneapolis, MN 55440 Chief Marketing Officer
Chief Marketing Officer
IDS Life Insurance Company Executive Vice President
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
James E. Choat, American Enterprise Life IDS Tower 10 Director, President and
Senior Vice President Insurance Company Minneapolis, MN 55440 Chief Executive Officer
American Express Financial Senior Vice President
Advisors Inc.
American Express Insurance Vice President
Agency of Idaho Inc.
American Express Insurance Vice President
Agency of Nevada Inc.
American Express Insurance Vice President
Agency of Oregon Inc.
American Express Property Vice President
Casualty Insurance Agency
of Kentucky Inc.
American Express Property Vice President
Casualty Insurance Agency
of Maryland Inc.
American Express Property Vice President
Casualty Insurance Agency
of Pennsylvania Inc.
IDS Insurance Agency of Vice President
Alabama Inc.
IDS Insurance Agency of Vice President
Arkansas Inc.
IDS Insurance Agency of Vice President
Massachusetts Inc.
IDS Insurance Agency of New Vice President
Mexico Inc.
IDS Insurance Agency of Vice President
North Carolina Inc.
IDS Insurance Agency of Vice President
Ohio Inc.
IDS Insurance Agency of Vice President
Wyoming Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Kenneth J. Ciak, AMEX Assurance Company IDS Tower 10 Director and President
Vice President and General Minneapolis, MN 55440
Manager
American Express Financial Vice President and General
Advisors Inc. Manager
IDS Property Casualty 1 WEG Blvd. Director and President
Insurance Company DePere, WI 54115
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Paul A. Connolly, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Colleen Curran, American Express Financial IDS Tower 10 Vice President and
Vice President and Advisors Inc. Minneapolis, MN 55440 Assistant General Counsel
Assistant General Counsel
American Express Service Vice President and Chief
Corporation Legal Counsel
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Regenia David, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Luz Maria Davis American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Gordon L. Eid, American Express Financial IDS Tower 10 Senior Vice President,
Director, Senior Vice Advisors Inc. Minneapolis, MN 55440 General Counsel and Chief
President, Deputy General Compliance Officer
Counsel and Chief
Compliance Officer
American Express Insurance Director and Vice President
Agency of Arizona Inc.
American Express Insurance Director and Vice President
Agency of Idaho Inc.
American Express Insurance Director and Vice President
Agency of Nevada Inc.
American Express Insurance Director and Vice President
Agency of Oregon Inc.
American Express Property Director and Vice President
Casualty Insurance Agency
of Kentucky Inc.
American Express Property Director and Vice President
Casualty Insurance Agency
of Maryland Inc.
American Express Property Director and Vice President
Casualty Insurance Agency
of Pennsylvania Inc.
IDS Insurance Agency of Director and Vice President
Alabama Inc.
IDS Insurance Agency of Director and Vice President
Arkansas Inc.
IDS Insurance Agency of Director and Vice President
Massachusetts Inc.
IDS Insurance Agency of New Director and Vice President
Mexico Inc.
IDS Insurance Agency of Director and Vice President
North Carolina Inc.
IDS Insurance Agency of Director and Vice President
Ohio Inc.
IDS Insurance Agency of Director and Vice President
Wyoming Inc.
IDS Real Estate Services, Vice President
Inc.
Investors Syndicate Director
Development Corp.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Robert M. Elconin, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
IDS Life Insurance Company Vice President
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Gordon M. Fines, American Express Asset IDS Tower 10 Executive Vice President
Vice President Management Group Inc. Minneapolis, MN 55440
American Express Financial Vice President
Advisors Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Douglas L. Forsberg, American Centurion Life IDS Tower 10 Director
Vice President Assurance Company Minneapolis, MN 55440
American Express Financial Vice President
Advisors Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Jeffrey P. Fox, American Enterprise Life IDS Tower 10 Vice President and
Vice President and Insurance Company Minneapolis, MN 55440 Controller
Corporate Controller
American Express Financial Vice President and
Advisors Inc. Corporate Controller
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Harvey Golub, American Express Company American Express Tower Chairman and Chief
Director World Financial Center Executive Officer
New York, NY 10285
American Express Travel Chairman and Chief
Related Services Company, Executive Officer
Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
David A. Hammer, American Express Financial IDS Tower 10 Vice President and
Vice President and Advisors Inc. Minneapolis, MN 55440 Marketing Controller
Marketing Controller
IDS Plan Services of Director and Vice President
California, Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Lorraine R. Hart, AMEX Assurance Company IDS Tower 10 Vice President
Vice President Minneapolis, MN 55440
American Enterprise Life Vice President
Insurance Company
American Express Financial Vice President
Advisors Inc.
American Partners Life Director and Vice
Insurance Company President
IDS Certificate Company Vice President
IDS Life Insurance Company Vice President
IDS Life Series Fund, Inc. Vice President
IDS Life Variable Annuity Vice President
Funds A and B
Investors Syndicate Director and Vice
Development Corp. President
IDS Life Insurance Company P.O. Box 5144 Investment Officer
of New York Albany, NY 12205
IDS Property Casualty 1 WEG Blvd. Vice President
Insurance Company DePere, WI 54115
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Scott A. Hawkinson, American Centurion Life IDS Tower 10 Chief Actuary
Vice President Assurance Company Minneapolis, MN 55440
American Express Financial Vice President
Advisors Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Janis K. Heaney, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
James G. Hirsh, American Express Financial IDS Tower 10 Vice President and
Vice President and Advisors Inc. Minneapolis, MN 55440 Assistant General Counsel
Assistant General Counsel
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Darryl G. Horsman, American Express Trust IDS Tower 10 Director and President
Vice President Company Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Jeffrey S. Horton, AMEX Assurance Company IDS Tower 10 Vice President, Treasurer
Vice President and Minneapolis, MN 55440 and Assistant Secretary
Corporate Treasurer
American Centurion Life Vice President and
Assurance Company Treasurer
American Enterprise Vice President and
Investment Services Inc. Treasurer
American Enterprise Life Vice President and
Insurance Company Treasurer
American Express Asset Vice President and
Management Group Inc. Treasurer
American Express Asset Vice President and
Management International Treasurer
Inc.
American Express Client Vice President and
Service Corporation Treasurer
American Express Corporation Vice President and
Treasurer
American Express Financial Vice President and
Advisors Inc. Treasurer
American Express Insurance Vice President and
Agency of Arizona Inc. Treasurer
American Express Insurance Vice President and
Agency of Idaho Inc. Treasurer
American Express Insurance Vice President and
Agency of Nevada Inc. Treasurer
American Express Minnesota Vice President and
Foundation Treasurer
American Express Property Vice President and
Casualty Insurance Agency Treasurer
of Kentucky Inc.
American Express Property Vice President and
Casualty Insurance Agency Treasurer
of Maryland Inc.
American Express Property Vice President and
Casualty Insurance Agency Treasurer
of Pennsylvania Inc.
American Express Partners Vice President and
Life Insurance Company Treasurer
IDS Cable Corporation Director, Vice President
and Treasurer
IDS Cable II Corporation Director, Vice President
and Treasurer
IDS Capital Holdings Inc. Vice President, Treasurer
and Assistant Secretary
IDS Certificate Company Vice President and
Treasurer
IDS Insurance Agency of Vice President and
Alabama Inc. Treasurer
IDS Insurance Agency of Vice President and
Arkansas Inc. Treasurer
IDS Insurance Agency of Vice President and
Massachusetts Inc. Treasurer
IDS Insurance Agency of New Vice President and
Mexico Inc. Treasurer
IDS Insurance Agency of Vice President and
North Carolina Inc. Treasurer
IDS Insurance Agency of Vice President and
Ohio Inc. Treasurer
IDS Insurance Agency of Vice President and
Wyoming Inc. Treasurer
IDS Life Insurance Company Vice President, Treasurer
and Assistant Secretary
IDS Life Series Fund Inc. Vice President and
Treasurer
IDS Life Variable Annuity Vice President and
Funds A & B Treasurer
IDS Management Corporation Director, Vice President
and Treasurer
IDS Partnership Services Vice President and
Corporation Treasurer
IDS Plan Services of Vice President and
California, Inc. Treasurer
IDS Real Estate Services, Vice President and
Inc. Treasurer
IDS Realty Corporation Vice President and
Treasurer
IDS Sales Support Inc. Vice President and
Treasurer
IDS Securities Corporation Vice President and
Treasurer
Investors Syndicate Vice President and
Development Corp. Treasurer
IDS Property Casualty 1 WEG Blvd. Vice President, Treasurer
Insurance Company DePere, WI 54115 and Assistant Secretary
North Dakota Public Vice President and
Employee Payment Company Treasurer
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
David R. Hubers, AMEX Assurance Company IDS Tower 10 Director
Director, President and Minneapolis, MN 55440
Chief Executive Officer
American Express Financial Chairman, President and
Advisors Inc. Chief Executive Officer
American Express Service Director and President
Corporation
IDS Certificate Company Director
IDS Life Insurance Company Director
IDS Plan Services of Director and President
California, Inc.
IDS Property Casualty 1 WEG Blvd. Director
Insurance Company DePere, WI 54115
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Martin G. Hurwitz, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
James M. Jensen, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
IDS Life Insurance Company Vice President
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Marietta L. Johns, American Express Financial IDS Tower 10 Senior Vice President
Director and Senior Vice Advisors Inc. Minneapolis, MN 55440
President
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Nancy E. Jones, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
American Express Service Vice President
Corporation
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
James E. Kaarre, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Matthew N. Karstetter, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Linda B. Keene, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
G. Michael Kennedy, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Susan D. Kinder, American Express Financial IDS Tower 10 Senior Vice President
Director and Senior Vice Advisors Inc. Minneapolis, MN 55440
President
IDS Securities Corporation Director
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Brian C. Kleinberg, American Enterprise IDS Tower 10 Senior Vice President
Executive Vice President Investment Services Inc. Minneapolis, MN 55440
American Express Financial Executive Vice President
Advisors Inc.
American Express Service Director
Corporation
AMEX Assurance Company Director and Chairman of
the Board
American Partners Life Executive Vice President
Insurance Company
IDS Property Casualty 1 WEG Blvd. Director and Chairman of
Insurance Company DePere, WI 54115 the Board
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Richard W. Kling, AMEX Assurance Company IDS Tower 10 Director
Director and Senior Vice Minneapolis, MN 55440
President
American Centurion Life Director
Assurance Company
American Enterprise Life Director and Chairman of
Insurance Company the Board
American Express Corporation Director and President
American Express Financial Senior Vice President
Advisors Inc.
American Express Insurance Director and President
Agency of Arizona Inc.
American Express Insurance Director and President
Agency of Idaho Inc.
American Express Insurance Director and President
Agency of Nevada Inc.
American Express Insurance Director and President
Agency of Oregon Inc.
American Express Property Director and President
Casualty Insurance Agency
of Kentucky Inc.
American Express Property Director and President
Casualty Insurance Agency
of Maryland Inc.
American Express Property Director and President
Casualty Insurance Agency
of Pennsylvania Inc.
American Express Service Vice President
Corporation
American Partners Life Director and Chairman of
Insurance Company the Board
IDS Certificate Company Director and Chairman of
the Board
IDS Insurance Agency of Director and President
Alabama Inc.
IDS Insurance Agency of Director and President
Arkansas Inc.
IDS Insurance Agency of Director and President
Massachusetts Inc.
IDS Insurance Agency of New Director and President
Mexico Inc.
IDS Insurance Agency of Director and President
North Carolina Inc.
IDS Insurance Agency of Director and President
Ohio Inc.
IDS Insurance Agency of Director and President
Wyoming Inc.
IDS Life Insurance Company Director and President
IDS Life Series Fund, Inc. Director and President
IDS Life Variable Annuity Manager, Chairman of the
Funds A and B Board and President
IDS Property Casualty 1 WEG Blvd. Director
Insurance Company DePere, WI 54115
IDS Life Insurance Company P.O. Box 5144 Director, Chairman of the
of New York Albany, NY 12205 Board and President
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Paul F. Kolkman, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
IDS Life Insurance Company Director and Executive
Vice President
IDS Life Series Fund, Inc. Vice President and Chief
Actuary
IDS Property Casualty 1 WEG Blvd. Director
Insurance Company DePere, WI 54115
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Claire Kolmodin, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Steve C. Kumagai, American Express Financial IDS Tower 10 Director and Senior Vice
Director and Senior Vice Advisors Inc. Minneapolis, MN 55440 President
President
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Edward Labenski, Jr., American Express Asset IDS Tower 10 Senior Vice President
Vice President Management Group Inc. Minneapolis, MN 55440
American Express Financial Vice President
Advisors Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Kurt A Larson, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Lori J. Larson, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
IDS Futures Corporation Director
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Daniel E. Laufenberg, American Express Financial IDS Tower 10 Vice President and Chief
Vice President and Chief Advisors Inc. Minneapolis, MN 55440 U.S. Economist
U.S. Economist
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Peter A. Lefferts, American Express Financial IDS Tower 10 Senior Vice President
Director and Senior Vice Advisors Inc. Minneapolis, MN 55440
President
American Express Trust Director
Company
IDS Plan Services of Director
California, Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Douglas A. Lennick, American Express Financial IDS Tower 10 Director and Executive
Director and Executive Vice Advisors Inc. Minneapolis, MN 55440 Vice President
President
IDS Securities Corporation Director, President and
Chief Executive Officer
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Mary J. Malevich, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Fred A. Mandell, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Thomas W. Medcalf, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Paula R. Meyer, American Enterprise Life IDS Tower 10 Vice President
Vice President Insurance Company Minneapolis, MN 55440
American Express Financial Vice President
Advisors Inc.
American Partners Life Director and President
Insurance Company
IDS Certificate Company Director and President
IDS Life Insurance Company Director and Executive
Vice President
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
James A. Mitchell, AMEX Assurance Company IDS Tower 10 Director
Director and Executive Vice Minneapolis, MN 55440
President
American Enterprise Director
Investment Services Inc.
American Express Financial Executive Vice President
Advisors Inc.
American Express Service Director and Senior Vice
Corporation President
American Express Tax and Director
Business Services Inc.
IDS Certificate Company Director
IDS Life Insurance Company Director, Chairman of the
Board and Chief Executive
Officer
IDS Plan Services of Director
California, Inc.
IDS Property Casualty 1 WEG Blvd. Director
Insurance Company DePere, WI 54115
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
William P. Miller, Advisory Capital Strategies IDS Tower 10 Vice President
Vice President and Senior Group Inc. Minneapolis, MN 55440
Portfolio Manager
American Express Asset Senior Vice President
Management Group Inc.
American Express Financial Vice President and Senior
Advisors Inc. Portfolio Manager
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Pamela J. Moret, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
American Express Trust Vice President
Company
IDS Life Insurance Company Executive Vice President
IDS Life Insurance Company P.O. Box 5144 Vice President
of New York Albany, NY 12205
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Barry J. Murphy, American Express Client IDS Tower 10 Director and President
Director and Senior Vice Service Corporation Minneapolis, MN 55440
President
American Express Financial Senior Vice President
Advisors Inc.
IDS Life Insurance Company Director and Executive
Vice President
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Mary Owens Neal, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Michael J. O'Keefe, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
James R. Palmer, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
IDS Life Insurance Company Vice President
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Carla P. Pavone, American Express Client IDS Tower 10 Director and Vice President
Vice President Service Corporation Minneapolis, MN 55440
American Express Financial Vice President
Advisors Inc.
North Dakota Public Director and President
Employee Payment Company
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Thomas P. Perrine, American Express Financial IDS Tower 10 Senior Vice President
Senior Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Susan B. Plimpton, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Ronald W. Powell, American Express Financial IDS Tower 10 Vice President and
Vice President and Advisors Inc. Minneapolis, MN 55440 Assistant General Counsel
Assistant General Counsel
IDS Cable Corporation Vice President and
Assistant Secretary
IDS Cable II Corporation Vice President and
Assistant Secretary
IDS Management Corporation Vice President and
Assistant Secretary
IDS Partnership Services Vice President and
Corporation Assistant Secretary
IDS Plan Services of Vice President and
California, Inc. Assistant Secretary
IDS Realty Corporation Vice President and
Assistant Secretary
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
James M. Punch, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Frederick C. Quirsfeld, American Express Asset IDS Tower 10 Vice President
Senior Vice President Management Group Inc. Minneapolis, MN 55440
American Express Financial Senior Vice President
Advisors Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
ReBecca K. Roloff, American Express Financial IDS Tower 10 Senior Vice President
Senior Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Stephen W. Roszell, Advisory Capital Strategies IDS Tower 10 Director
Senior Vice President Group Inc. Minneapolis, MN 55440
American Express Asset Director, President and
Management Group Inc. Chief Executive Officer
American Express Asset Director
Management International,
Inc.
American Express Asset Director
Management Ltd.
American Express Financial Senior Vice President
Advisors Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
John P. Ryan, American Express Financial IDS Tower 10 Vice President and General
Vice President and General Advisors Inc. Minneapolis, MN 55440 Auditor
Auditor
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Erven A. Samsel, American Express Financial IDS Tower 10 Senior Vice President
Director and Senior Vice Advisors Inc. Minneapolis, MN 55440
President
American Express Insurance Vice President
Agency of Idaho Inc.
American Express Insurance Vice President
Agency of Nevada Inc.
American Express Insurance Vice President
Agency of Oregon Inc.
American Express Property Vice President
Casualty Insurance Agency
of Kentucky Inc.
American Express Property Vice President
Casualty Insurance Agency
of Maryland Inc.
American Express Property Vice President
Casualty Insurance Agency
of Pennsylvania Inc.
IDS Insurance Agency of Vice President
Alabama Inc.
IDS Insurance Agency of Vice President
Arkansas Inc.
IDS Insurance Agency of Vice President
Massachusetts Inc.
IDS Insurance Agency of New Vice President
Mexico Inc.
IDS Insurance Agency of Vice President
North Carolina Inc.
IDS Insurance Agency of Vice President
Ohio Inc.
IDS Insurance Agency of Vice President
Wyoming Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Stuart A. Sedlacek, American Centurion Life IDS Tower 10 Director, Chairman and
Senior Vice President and Assurance Company Minneapolis, MN 55440 President
Chief Financial Officer
American Enterprise Life Executive Vice President
Insurance Company
American Express Financial Senior Vice President and
Advisors Inc. Chief Financial Officer
American Express Trust Director
Company
American Partners Life Director and Vice President
Insurance Agency
IDS Certificate Company Director and President
IDS Life Insurance Company Executive Vice President
and Controller
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Donald K. Shanks, AMEX Assurance Company IDS Tower 10 Senior Vice President
Vice President Minneapolis, MN 55440
American Express Financial Vice President
Advisors Inc.
IDS Property Casualty 1 WEG Blvd. Senior Vice President
Insurance Company DePere, WI 54115
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
F. Dale Simmons, AMEX Assurance Company IDS Tower 10 Vice President
Vice President Minneapolis, MN 55440
American Enterprise Life Vice President
Insurance
American Express Financial Vice President
Advisors Inc.
American Partners Life Vice President
Insurance Company
IDS Certificate Company Vice President
IDS Life Insurance Company Vice President
IDS Partnership Services Director and Vice President
Corporation
IDS Real Estate Services Director and Vice President
Inc.
IDS Realty Corporation Director and Vice President
IDS Life Insurance Company Box 5144 Vice President and
of New York Albany, NY 12205 Assistant Treasurer
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Judy P. Skoglund, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
William A. Smith, American Express Financial IDS Tower 10 Vice President and
Vice President and Advisors Inc. Minneapolis, MN 55440 Controller
Controller
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Bridget Sperl, American Express Client IDS Tower 10 Vice President
Vice President Service Corporation Minneapolis, MN 55440
American Express Financial Vice President
Advisors Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Lisa A. Steffes, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
William A. Stoltzmann, American Enterprise Life IDS Tower 10 Director, Vice President,
Vice President and Insurance Company Minneapolis, MN 55440 General Counsel and
Assistant General Counsel Secretary
American Express Corporation Director, Vice President
and Secretary
American Express Financial Vice President and
Advisors Inc. Assistant General Counsel
American Partners Life Director, Vice President,
Insurance Company General Counsel and
Secretary
IDS Life Insurance Company Vice President, General
Counsel and Secretary
IDS Life Series Fund Inc. General Counsel and
Assistant Secretary
IDS Life Variable Annuity General Counsel and
Funds A & B Assistant Secretary
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
James J. Strauss, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Jeffrey J. Stremcha, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Barbara Stroup Stewart, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Wesley W. Wadman, American Express Asset IDS Tower 10 Executive Vice President
Vice President Management Group Inc. Minneapolis, MN 55440
American Express Asset Director and Senior Vice
Management International, President
Inc.
American Express Asset Director and Vice Chairman
Management Ltd.
American Express Financial Vice President
Advisors Inc.
IDS Fund Management Limited Director and Vice Chairman
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Norman Weaver Jr., American Express Financial IDS Tower 10 Senior Vice President
Director and Senior Vice Advisors Inc. Minneapolis, MN 55440
President
American Express Insurance Vice President
Agency of Arizona Inc.
American Express Insurance Vice President
Agency of Idaho Inc.
American Express Insurance Vice President
Agency of Nevada Inc.
American Express Insurance Vice President
Agency of Oregon Inc.
American Express Property Vice President
Casualty Insurance Agency
of Kentucky Inc.
American Express Property Vice President
Casualty Insurance Agency
of Maryland Inc.
American Express Property Vice President
Casualty Insurance Agency
of Pennsylvania Inc.
IDS Insurance Agency of Vice President
Alabama Inc.
IDS Insurance Agency of Vice President
Arkansas Inc.
IDS Insurance Agency of Vice President
Massachusetts Inc.
IDS Insurance Agency of New Vice President
Mexico Inc.
IDS Insurance Agency of Vice President
North Carolina Inc.
IDS Insurance Agency of Vice President
Ohio Inc.
IDS Insurance Agency of Vice President
Wyoming Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Michael L. Weiner, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
IDS Capital Holdings Inc. Vice President
IDS Futures Brokerage Group Vice President
IDS Futures Corporation Vice President, Treasurer
and Secretary
IDS Sales Support Inc. Director, Vice President
and Assistant Treasurer
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Lawrence J. Welte, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Jeffrey F. Welter, American Express Financial IDS Tower 10 Vice President
Vice President Advisors Inc. Minneapolis, MN 55440
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Edwin M. Wistrand, American Express Financial IDS Tower 10 Vice President and
Vice President and Advisors Inc. Minneapolis, MN 55440 Assistant General Counsel
Assistant General Counsel
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Michael D. Wolf, American Express Asset IDS Tower 10 Executive Vice President
Vice President Management Group Inc. Minneapolis, MN 55440
American Express Financial Vice President
Advisors Inc.
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
Michael R. Woodward, American Express Financial IDS Tower 10 Senior Vice President
Director and Senior Vice Advisors Inc. Minneapolis, MN 55440
President
American Express Insurance Vice President
Agency of Idaho Inc.
American Express Insurance Vice President
Agency of Nevada Inc.
American Express Insurance Vice President
Agency of Oregon Inc.
American Express Property Vice President
Casualty Insurance Agency
of Kentucky Inc.
American Express Property Vice President
Casualty Insurance Agency
of Maryland Inc.
American Express Property Vice President
Casualty Insurance Agency
of Pennsylvania Inc.
IDS Insurance Agency of Vice President
Alabama Inc.
IDS Insurance Agency of Vice President
Arkansas Inc.
IDS Insurance Agency of Vice President
Massachusetts Inc.
IDS Insurance Agency of New Vice President
Mexico Inc.
IDS Insurance Agency of Vice President
North Carolina Inc.
IDS Insurance Agency of Vice President
Ohio Inc.
IDS Insurance Agency of Vice President
Wyoming Inc.
IDS Life Insurance Company Box 5144 Director
of New York Albany, NY 12205
- ----------------------------- ----------------------------- ---------------------------- ----------------------------
</TABLE>
<TABLE>
<CAPTION>
Item 29. Principal Underwriters.
(a) American Express Financial Advisors acts as principal underwriter for the following investment
companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS Discovery Fund, Inc.; IDS Equity
Select Fund, Inc.; IDS Extra Income Fund, Inc.; IDS Federal Income Fund, Inc.; IDS Global
Series, Inc.; IDS Growth Fund, Inc.; IDS High Yield Tax-Exempt Fund, Inc.; IDS International
Fund, Inc.; IDS Investment Series, Inc.; IDS Managed Retirement Fund, Inc.; IDS Market
Advantage Series, Inc.; IDS Money Market Series, Inc.; IDS New Dimensions Fund, Inc.; IDS
Precious Metals Fund, Inc.; IDS Progressive Fund, Inc.; IDS Selective Fund, Inc.; IDS Special
Tax-Exempt Series Trust; IDS Stock Fund, Inc.; IDS Strategy Fund, Inc.; IDS Tax-Exempt Bond
Fund, Inc.; IDS Tax-Free Money Fund, Inc.; IDS Utilities Income Fund, Inc., Growth Trust;
Growth and Income Trust; Income Trust, Tax-Free Income Trust, World Trust and IDS Certificate
Company.
(b) As to each director, officer or partner of the principal underwriter:
<S> <C> <C>
Name and Principal Business Address Position and Offices with Offices with Registrant
Underwriter
- --------------------------------------------- --------------------------------- --------------------------
Ronald G. Abrahamson Vice President-Service Quality None
IDS Tower 10 and Reengineering
Minneapolis, MN 55440
Douglas A. Alger Senior Vice President-Human None
IDS Tower 10 Resources
Minneapolis, MN 55440
Peter J. Anderson Senior Vice Vice President
IDS Tower 10 President-Investment Operations
Minneapolis, MN 55440
Ward D. Armstrong Vice President-American None
IDS Tower 10 Express, Institutional Services
Minneapolis, MN 55440
John M. Baker Vice President-Plan Sponsor None
IDS Tower 10 Services
Minneapolis, MN 55440
Joseph M. Barsky III Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Timothy V. Bechtold Vice President-Risk Management None
IDS Tower 10 Products
Minneapolis, MN 55440
John D. Begley Group Vice None
Suite 100 President-Ohio/Indiana
7760 Olentangy River Rd.
Columbus, OH 43235
Brent L. Bisson Group Vice President-Los None
Suite 900, E. Westside Twr Angeles Metro
11835 West Olympic Blvd.
Los Angeles, CA 90064
John C. Boeder Vice President-Mature Market None
IDS Tower 10 Group
Minneapolis, MN 55440
Walter K. Booker Group Vice President-New Jersey None
Suite 200, 3500 Market Street
Camp Hill, NJ 17011
Bruce J. Bordelon Group Vice President-Gulf States None
Galleria One Suite 1900
Galleria Blvd.
Metairie, LA 70001
Charles R. Branch Group Vice President-Northwest None
Suite 200
West 111 North River Dr.
Spokane, WA 99201
Douglas W. Brewers Vice President-Sales Support None
IDS Tower 10
Minneapolis, MN 55440
Karl J. Breyer Senior Vice President-Law and None
IDS Tower 10 Corporate
Minneapolis, MN 55440 Affairs
Daniel J. Candura Vice President-Marketing Support None
IDS Tower 10
Minneapolis, MN 55440
Cynthia M. Carlson Vice President-American Express None
IDS Tower 10 Securities Services
Minneapolis, MN 55440
Mark W. Carter Senior Vice President and Chief None
IDS Tower 10 Marketing Officer
Minneapolis, MN 55440
James E. Choat Senior Vice None
IDS Tower 10 President-Institutional
Minneapolis, MN 55440 Products Group
Kenneth J. Ciak Vice President and General None
IDS Property Casualty Manager-IDS Property Casualty
1400 Lombardi Avenue
Green Bay, WI 54304
Paul A. Connolly Vice President - Advisor None
IDS Tower 10 Staffing, Training and Support
Minneapolis, MN 55440
Roger C. Corea Group Vice President-Upstate None
290 Woodcliff Drive New York
Fairport, NY 14450
Henry J. Cormier Group Vice President-Connecticut None
Commerce Center One
333 East River Drive
East Hartford, CT 06108
John M. Crawford Group Vice President-Arkansas / None
Suite 200 Springfield / Memphis
10800 Financial Ctr Pkwy
Little Rock, AR 72211
Kevin F. Crowe Group Vice None
Suite 312 President-Carolinas/Eastern
7300 Carmel Executive Pk Georgia
Charlotte, NC 28226
Colleen Curran Vice President and assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Reginia David Vice President-Systems Services None
IDS Tower 10
Minneapolis, MN 55440
Luz Maria Davis Vice President-Communications None
IDS Tower 10
Minneapolis, MN 55440
Scott M. DiGiammarino Group Vice None
Suite 500, 8045 Leesburg Pike President-Washington/Baltimore
Vienna, VA 22182
Bradford L. Drew Group Vice President-Eastern None
Two Datran Center Florida
Penthouse One B
9130 S. Dadeland Blvd.
Miami, FL 33156
James P. Egge Group Vice President - Western None
4305 South Louise, Suite 202 Iowa, Nebraska, Dakotas
Sioux Falls, SD 57103
Gordon L. Eid Senior Vice President, General None
IDS Tower 10 Counsel and Chief Compliance
Minneapolis, MN 55440 Officer
Robert M. Elconin Vice President-Government None
IDS Tower 10 Relations
Minneapolis, MN 55440
Louise P. Evenson Group Vice President-San None
Suite 200 Francisco Bay Area
1333 N. California Blvd.
Walnut Creek, CA 94596
Phillip W. Evans, Group Vice President - Rocky None
Suite 600 Mountain
6985 Union Park Center
Midvale, UT 84047-4177
Gordon M. Fines Vice President-Mutual Fund None
IDS Tower 10 Equity Investments
Minneapolis, MN 55440
Douglas L. Forsberg Vice President-Institutional None
IDS Tower 10 Products Group
Minneapolis, MN 55440
Jeffrey P. Fox Vice President and Corporate None
IDS Tower 10 Controller
Minneapolis, MN 55440
William P. Fritz Group Vice President-Gateway None
Suite 160
12855 Flushing Meadows Dr
St. Louis, MO 63131
Carl W. Gans Group Vice President-Twin City None
8500 Tower Suite 1770 Metro
8500 Normandale Lake Blvd.
Bloomington, MN 55437
David A. Hammer Vice President and Marketing None
IDS Tower 10 Controller
Minneapolis, MN 55440
Teresa A. Hanratty Group Vice President-Northern None
Suites 6&7 New England
169 South River Road
Bedford, NH 03110
Robert L. Harden Group Vice President-Boston None
Two Constitution Plaza Metro
Boston, MA 02129
Lorraine R. Hart Vice President-Insurance None
IDS Tower 10 Investments
Minneapolis, MN 55440
Scott A. Hawkinson Vice President-Assured Assets None
IDS Tower 10 Product Development and
Minneapolis, MN 55440 Management
Brian M. Heath Group Vice President-North Texas None
Suite 150
801 E. Campbell Road
Richardson, TX 75081
Janis K. Heaney Vice President - Incentive None
IDS Tower 10 Management
Minneapolis, MN 55440
James G. Hirsh Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Jon E. Hjelm Group Vice President-Rhode None
319 Southbridge Street Island/Central-Western
Auburn, MA 01501 Massachusetts
David J. Hockenberry Group Vice President-Eastern None
30 Burton Hills Blvd. Tennessee
Suite 175
Nashville, TN 37215
Jeffrey S. Horton Vice President and Treasurer None
IDS Tower 10
Minneapolis, MN 55440
David R. Hubers Chairman, President and Chief Board member
IDS Tower 10 Executive Officer
Minneapolis, MN 55440
Martin G. Hurwitz Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
James M. Jensen Vice President-Insurance None
IDS Tower 10 Product Development and
Minneapolis, MN 55440 Management
Marietta L. Johns Senior Vice President-Field None
IDS Tower 10 Management
Minneapolis, MN 55440
Nancy E. Jones Vice President - Business None
IDS Tower 10 Development
Minneapolis, MN 55440
James E. Kaarre Vice President-Marketing None
IDS Tower 10 Promotions
Minneapolis, MN 55440
Matthew N. Karstetter Vice President-Investment None
IDS Tower 10 Accounting
Minneapolis, MN 55440
Linda B. Keene Vice President-Market None
IDS Tower 10 Development
Minneapolis, MN 55440
G. Michael Kennedy Vice President-Investment None
IDS Tower 10 Services and Investment Research
Minneapolis, MN 55440
Susan D. Kinder Senior Vice None
IDS Tower 10 President-Distribution Services
Minneapolis, MN 55440
Brian Kleinberg Executive Vice None
IDS Tower 10 President-Financial Direct
Minneapolis, MN 55440
Richard W. Kling Senior Vice President-Products None
IDS Tower 10
Minneapolis, MN 55440
Paul F. Kolkman Vice President-Actuarial Finance None
IDS Tower 10
Minneapolis, MN 55440
Claire Kolmodin Vice President-Service Quality None
IDS Tower 10
Minneapolis, MN 55440
David S. Kreager Group Vice President-Greater None
Suite 108 Michigan
Trestle Bridge V
5136 Lovers Lane
Kalamazoo, MI 49002
Steven C. Kumagai Director and Senior Vice None
IDS Tower 10 President-Field Management and
Minneapolis, MN 55440 Business Systems
Mitre Kutanovski Group Vice President-Chicago None
Suite 680 Metro
8585 Broadway
Merrillville, IN 48410
Edward Labenski Jr. Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Kurt A. Larson Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Lori J. Larson Vice President - Brokerage and None
IDS Tower 10 Direct Services
Minneapolis, MN 55440
Daniel E. Laufenberg Vice President and Chief U.S. None
IDS Tower 10 Economist
Minneapolis, MN 55440
Peter A. Lefferts Senior Vice President-Corporate None
IDS Tower 10 Strategy and Development
Minneapolis, MN 55440
Douglas A. Lennick Director and Executive Vice None
IDS Tower 10 President-Private Client Group
Minneapolis, MN 55440
Mary J. Malevich Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Fred A. Mandell Vice President-Field Marketing None
IDS Tower 10 Readiness
Minneapolis, MN 55440
Daniel E. Martin Group Vice President-Pittsburgh None
Suite 650 Metro
5700 Corporate Drive
Pittsburgh, PA 15237
Thomas W. Medcalf Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Paula R. Meyer Vice President - Assured Assets None
IDS Tower 10
Minneapolis, MN 55440
William P. Miller Vice President and Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
James A. Mitchell Executive Vice None
IDS Tower 10 President-Marketing and Products
Minneapolis, MN 55440
Pamela J. Moret Vice President-Variable Assets None
IDS Tower 10
Minneapolis, MN 55440
Alan D. Morgenstern Group Vice President-Central None
Suite 200 California/Western Nevada
3500 Market Street
Camp Hill, NJ 17011
Barry J. Murphy Senior Vice President-Client None
IDS Tower 10 Service
Minneapolis, MN 55440
Mary Owens Neal Vice President-Mature Market None
IDS Tower 10 Segment
Minneapolis, MN 55440
Thomas V. Nicolosi Group Vice President-New York None
Suite 220 Metro Area
500 Mamaroneck Avenue
Harrison, NY 10528
Michael J. O'Keefe Vice President - Advisory None
IDS Tower 10 Business Systems
Minneapolis, MN 55440
James R. Palmer Vice President-Taxes None
IDS Tower 10
Minneapolis, MN 55440
Marc A. Parker Group Vice President - None
10200 SW Greenburg Road Portland/Eugene
Suite 110
Portland OR 97223
Carla P. Pavone Vice President-Compensation and None
IDS Tower 10 Field Administration
Minneapolis, MN 55440
Thomas P. Perrine Senior Vice President - Group
IDS Tower 10 Relationship Leader/AXP
Minneapolis, MN 55440 Technologies Financial Services
Susan B. Plimpton Vice President-Marketing None
IDS Tower 10 Services
Minneapolis, MN 55440
Larry M. Post Group Vice None
One Tower Bridge President-Philadelphia Metro
100 Front Street 8th Fl
West Conshohocken, PA 19428
Ronald W. Powell Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Diana R. Prost Group Vice President - None
3030 N.W. Expressway Kansas/Oklahoma
Suite 900
Oklahoma City, OK 73112
James M. Punch Vice President-Special Projects None
IDS Tower 10
Minneapolis, MN 55440
Frederick C. Quirsfeld Senior Vice President - Fixed None
IDS Tower 10 Income
Minneapolis, MN 55440
R. Daniel Richardson Group Vice President-Southern None
Suite 800 Texas
Arboretum Plaza One
9442 Capital of Texas Hwy N.
Austin, TX 78759
ReBecca K. Roloff Senior Vice President-Field None
IDS Tower 10 Management and Financial
Minneapolis, MN 55440 Advisory Service
Stephen W. Roszell Senior Vice None
IDS Tower 10 President-Institutional
Minneapolis, MN 55440
Max G. Roth Group Vice None
Suite 201 S IDS Ctr President-Wisconsin/Upper
1400 Lombardi Avenue Michigan
Green Bay, WI 54304
John P. Ryan Vice President and General None
IDS Tower 10 Auditor
Minneapolis, MN 55440
Erven A. Samsel Senior Vice President-Field None
45 Braintree Hill Park Management
Suite 402
Braintree, MA 02184
Russell L. Scalfano Group Vice None
Suite 201 President-Illinois/Indiana/Kentucky
101 Plaza East Blvd.
Evansville, IN 47715
William G. Scholz Group Vice None
Suite 205 President-Arizona/Las Vegas
7333 E Doubletree Ranch Rd
Scottsdale, AZ 85258
Stuart A. Sedlacek Senior Vice President and Chief None
IDS Tower 10 Financial Officer
Minneapolis, MN 55440
Donald K. Shanks Vice President-Property Casualty None
IDS Tower 10
Minneapolis, MN 55440
F. Dale Simmons Vice President-Senior Portfolio None
IDS Tower 10 Manager, Insurance Investments
Minneapolis, MN 55440
Judy P. Skoglund Vice President -Quality and None
IDS Tower 10 Service Support
Minneapolis, MN 55440
William A. Smith Vice President and None
IDS Tower 10 Controller-Private Client Group
Minneapolis, MN 55440
James B. Solberg Group Vice President-Eastern None
466 Westdale Mall Iowa Area
Cedar Rapids, IA 52404
Bridget Sperl Vice President-Geographic None
IDS Tower 10 Service Teams
Minneapolis, MN 55440
Paul J. Stanislaw Group Vice President-Southern None
Suite 1100 California
Two Park Plaza
Irvine, CA 92714
Lisa A. Steffes Vice President - Cardmember None
IDS Tower 10 Initiatives
Minneapolis, MN 55440
Lois A. Stilwell Group Vice President-Outstate None
Suite 433 Minnesota Area/ North
9900 East Bren Road Dakota/Western Wisconsin
Minnetonka, MN 55343
William A. Stoltzmann Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
James J. Strauss Vice President and General None
IDS Tower 10 Auditor
Minneapolis, MN 55440
Jeffrey J. Stremcha Vice President-Information None
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440
Barbara Stroup Stewart Vice President - Channel None
IDS Tower 10 Development
Minneapolis, MN 55440
Craig P. Taucher Group Vice None
Suite 150 President-Orlando/Jacksonville
4190 Belfort Road
Jacksonville, FL 32216
Neil G. Taylor Group Vice None
Suite 425 President-Seattle/Tacoma
101 Elliott Avenue West
Seattle, WA 98119
Peter S. Velardi Group Vice None
Suite 180 President-Atlanta/Birmingham
1200 Ashwood Parkway
Atlanta, GA 30338
Charles F. Wachendorfer Group Vice President - Detroit None
8115 East Jefferson Avenue Metro
Detroit, MI 48214
Wesley W. Wadman Vice President-Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Donald F. Weaver Group Vice President - Greater None
3500 Market Street, Suite 200 Pennsylvania
Camp Hill, PA 17011
Norman Weaver Jr. Senior Vice President-Field None
1010 Main St. Suite 2B Management
Huntington Beach, CA 92648
Michael L. Weiner Vice President-Tax Research and None
IDS Tower 10 Audit
Minneapolis, MN 55440
Lawrence J. Welte Vice President-Investment None
IDS Tower 10 Administration
Minneapolis, MN 55440
Jeffry M. Welter Vice President-Equity and Fixed None
IDS Tower 10 Income Trading
Minneapolis, MN 55440
Thomas L. White Group Vice President-Cleveland None
Suite 200 Metro
28601 Chagrin Blvd.
Woodmere, OH 44122
Eric S. Williams Group Vice President-Virginia None
Suite 250
3951 Westerre Parkway
Richmond, VA 23233
William J. Williams Group Vice President-Western None
Two North Tamiami Trail Florida
Suite 702
Sarasota, FL 34236
Edwin M. Wistrand Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Michael D. Wolf Vice President- Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
Michael R. Woodward Senior Vice President-Field None
32 Ellicott St Management
Suite 100
Batavia, NY 14020
</TABLE>
Item 29(c). Not applicable.
Item 30. Location of Accounts and Records
American Express Financial Corporation
IDS Tower 10
Minneapolis, MN 55440
Item 31. Management Services
Not Applicable.
Item 32. Undertakings
(a) Not Applicable.
(b) Not Applicable.
(c) The Registrant undertakes to furnish each person to
whom a prospectus is delivered with a copy of the
Registrant's latest annual report to shareholders, upon
request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant, IDS Money Market Series, Inc., certifies
that it meets the requirements for the effectiveness of this Amendment to its
Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933,
and has duly caused this Amendment to its Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of
Minneapolis and State of Minnesota on the 25th day of September, 1998.
IDS MONEY MARKET SERIES, INC.
By /s/ William R. Pearce**
William R. Pearce, President
By /s/ ___________________________________
Matthew N. Karstetter, Treasurer
Pursuant to the requirements of the Securities Act of 1933, this Amendment to
its Registration Statement has been signed below by the following persons in the
capacities indicated on the 25th day of September, 1998.
Signature Capacity
/s/ William R. Pearce** President and
William R. Pearce Principal Executive
Officer and Director
/s/ H. Brewster Atwater, Jr.* Director
H. Brewster Atwater, Jr.
/s/ Lynne V. Cheney* Director
Lynne V. Cheney
/s/ William H. Dudley* Director
William H. Dudley
/s/ David R. Hubers* Director
David R. Hubers
<PAGE>
Signature Capacity
/s/ Heinz F. Hutter* Director
Heinz F. Hutter
/s/ Anne P. Jones* Director
Anne P. Jones
/s/ Alan K. Simpson* Director
Alan K. Simpson
/s/ Edson W. Spencer* Director
Edson W. Spencer
/s/ John R. Thomas* Director
John R. Thomas
/s/ Wheelock Whitney* Director
Wheelock Whitney
/s/ C. Angus Wurtele* Director
C. Angus Wurtele
*Signed pursuant to Directors' Power of Attorney, dated January 7, 1998, filed
electronically herewith by:
____________________________________
Leslie L. Ogg
**Signed pursuant to Officers' Power of Attorney, dated Nov. 1, 1995, is filed
electronically as Exhibit 19(b) to Registrant's Post-Effective Amendment
No. 45 by:
____________________________________
Leslie L. Ogg
<PAGE>
CONTENTS OF THIS
POST-EFFECTIVE AMENDMENT NO. 48
TO REGISTRATION STATEMENT NO. 2-54516
This Post-Effective Amendment contains the following papers and documents:
The facing sheet.
Cross reference sheet.
Part A.
IDS Cash Management Fund prospectus.
Part B.
Statement of Additional Information for IDS Money Market Series, Inc.,
IDS Cash Management Fund.
Financial Statements.
Part C.
Other information.
Exhibits.
The signatures.
<PAGE>
IDS Money Market Series, Inc.
File No. 2-54516/811-2591
EXHIBIT INDEX
Exhibit 8(c): Copy of Custodian Agreement Amendment dated Oct. 9, 1997
Exhibit 10: Opinion and consent of counsel
Exhibit 11: Independent Auditor's Consent
Exhibit 17: Financial Data Schedules
Exhibit 19(a): Directors' Power of Attorney dated January 7, 1998
<PAGE>
CUSTODIAN AGREEMENT AMENDMENT
Pursuant to mutual agreement as permitted under Section 12. Termination and
Amendment of Agreement, the Custodian Agreement dated March 20, 1995, between
the IDS Money Market Series, Inc. (the Corporation) on behalf of its underlying
series fund, IDS Cash Management Fund, and American Express Trust Company (the
Custodian), is amended this 9th day of October, 1997, as follows:
Section 4. Receipt and Disbursement of Money
In the first paragraph, add the italicized words as follows:
..., the Custodian shall receive and may rely upon a custodian order directing
such payment and stating that the payment is for such a purpose permitted under
these items (a), (b), (c), (d), (e), (f) or (g) or, where appropriate, a trade
affirmation report, and that...
Section 6. Transfer, Exchange, Delivery, etc. of Securities
In the first paragraph, add the italicized words as follows:
Before making any such transfer, exchange or delivery, the Custodian shall
receive a custodian order or a facsimile from the Corporation and stating that
it is for a purpose permitted under Section 6, or, where appropriate, a trade
affirmation report, (whenever...
Section 11. Concerning Custodian
In the second paragraph, add the italicized words as follows:
The Custodian shall not be liable for an action taken in good faith upon any
custodian order or facsimile herein described, trade affirmation report, or
certified copy of any resolution of the Board of Directors of the Corporation or
of the Executive Committee of the Board of Directors of the Corporation, and may
rely on the genuineness of any such document which it may in good faith believe
to have been validly prepared or executed.
IDS Money Market Series, Inc. American Express Trust Company
IDS Cash Management Fund
By: /s/Leslie L. Ogg By: /s/Chandrakant A. Patel
Leslie L. Ogg, Vice President Chandrakant A. Patel, Vice President
September 25, 1998
IDS Money Market Series, Inc.
IDS Tower 10
Minneapolis, Minnesota 55440-0010
Gentlemen:
I have examined the Articles of Incorporation and the By-Laws of IDS Money
Market Series, Inc. (the Company) and all necessary certificates, permits,
minute books, documents and records of the Company, and the applicable statutes
of the State of Minnesota, and it is my opinion that the shares sold in
accordance with applicable federal and state securities laws will be legally
issued, fully paid, and nonassessable.
This opinion may be used in connection with the Post-Effective Amendment.
Sincerely,
Leslie L. Ogg
Attorney at Law
901 S. Marquette Ave., Suite 2810
Minneapolis, Minnesota 55402-3268
<PAGE>
Independent auditors' consent
The board and shareholders
IDS Money Market Series, Inc.:
IDS Cash Management Fund
We consent to the use of our report incorporated herein by reference and to the
references to our Firm under the headings "Financial highlights" in Part A and
"INDEPENDENT AUDITORS" in Part B of the Registration Statement.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
September , 1998
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<NUMBER> 1
<NAME> IDS CASH MANAGEMENT FUND CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
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<PERIOD-END> JUL-31-1998
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<DISTRIBUTIONS-OTHER> 0
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<GROSS-EXPENSE> 21288747
<AVERAGE-NET-ASSETS> 3433398888
<PER-SHARE-NAV-BEGIN> 1
<PER-SHARE-NII> .05
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
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<NUMBER> 2
<NAME> IDS CASH MANAGEMENT FUND CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
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<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 3974870033
<INVESTMENTS-AT-VALUE> 3974870033
<RECEIVABLES> 3148553
<ASSETS-OTHER> 119484916
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4097503502
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 1758736
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4095780839
<SHARES-COMMON-STOCK> 97654880
<SHARES-COMMON-PRIOR> 146809834
<ACCUMULATED-NII-CURRENT> 459
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 36532
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 97608056
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 204319887
<OTHER-INCOME> 0
<EXPENSES-NET> 18456555
<NET-INVESTMENT-INCOME> 185863332
<REALIZED-GAINS-CURRENT> (14033)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 185849299
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5060497
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 160192750
<NUMBER-OF-SHARES-REDEEMED> 214354911
<SHARES-REINVESTED> 5007204
<NET-CHANGE-IN-ASSETS> 793106156
<ACCUMULATED-NII-PRIOR> 975
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 27,000
<GROSS-ADVISORY-FEES> 9928579
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 21288747
<AVERAGE-NET-ASSETS> 115168131
<PER-SHARE-NAV-BEGIN> 1
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1
<EXPENSE-RATIO> 1.32
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> IDS CASH MANAGEMENT FUND CLASS Y
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 3974870033
<INVESTMENTS-AT-VALUE> 3974870033
<RECEIVABLES> 3148553
<ASSETS-OTHER> 119484916
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4097503502
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1758736
<TOTAL-LIABILITIES> 1758736
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4095780839
<SHARES-COMMON-STOCK> 72417600
<SHARES-COMMON-PRIOR> 61993894
<ACCUMULATED-NII-CURRENT> 459
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 36532
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 72383240
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 204319887
<OTHER-INCOME> 0
<EXPENSES-NET> 18456555
<NET-INVESTMENT-INCOME> 185863332
<REALIZED-GAINS-CURRENT> (14033)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 185849299
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3905091
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 153296666
<NUMBER-OF-SHARES-REDEEMED> 146664783
<SHARES-REINVESTED> 3791823
<NET-CHANGE-IN-ASSETS> 793106156
<ACCUMULATED-NII-PRIOR> 975
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 27,000
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<GROSS-EXPENSE> 21288747
<AVERAGE-NET-ASSETS> 75522291
<PER-SHARE-NAV-BEGIN> 1
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1
<EXPENSE-RATIO> .56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<PAGE>
DIRECTORS/TRUSTEES POWER OF ATTORNEY
City of Minneapolis
State of Minnesota
Each of the undersigned, as directors and trustees of the below listed
open-end, diversified investment companies that previously have filed
registration statements and amendments thereto pursuant to the requirements of
the Securities Act of 1933 and the Investment Company Act of 1940 with the
Securities and Exchange Commission:
1933 Act 1940 Act
Reg. Number Reg. Number
IDS Bond Fund, Inc. 2-51586 811-2503
IDS California Tax-Exempt Trust 33-5103 811-4646
IDS Discovery Fund, Inc. 2-72174 811-3178
IDS Equity Select Fund, Inc. 2-13188 811-772
IDS Extra Income Fund, Inc. 2-86637 811-3848
IDS Federal Income Fund, Inc. 2-96512 811-4260
IDS Global Series, Inc. 33-25824 811-5696
IDS Growth Fund, Inc. 2-38355 811-2111
IDS High Yield Tax-Exempt Fund, Inc. 2-63552 811-2901
IDS International Fund, Inc. 2-92309 811-4075
IDS Investment Series, Inc. 2-11328 811-54
IDS Managed Retirement Fund, Inc. 2-93801 811-4133
IDS Market Advantage Series, Inc. 33-30770 811-5897
IDS Money Market Series, Inc. 2-54516 811-2591
IDS New Dimensions Fund, Inc. 2-28529 811-1629
IDS Precious Metals Fund, Inc. 2-93745 811-4132
IDS Progressive Fund, Inc. 2-30059 811-1714
IDS Selective Fund, Inc. 2-10700 811-499
IDS Special Tax-Exempt Series Trust 33-5102 811-4647
IDS Stock Fund, Inc. 2-11358 811-498
IDS Strategy Fund, Inc. 2-89288 811-3956
IDS Tax-Exempt Bond Fund, Inc. 2-57328 811-2686
IDS Tax-Free Money Fund, Inc. 2-66868 811-3003
IDS Utilities Income Fund, Inc. 33-20872 811-5522
hereby constitutes and appoints William R. Pearce and Leslie L. Ogg or either
one of them, as her or his attorney-in-fact and agent, to sign for her or him in
her or his name, place and stead any and all further amendments to said
registration statements filed pursuant to said Acts and any rules and
regulations thereunder, and to file such amendments with all exhibits thereto
and other documents in connection therewith with the Securities and Exchange
Commission, granting to either of them the full power and authority to do and
perform each and every act required and necessary to be done in connection
therewith.
<PAGE>
Dated the 7th day of January, 1998.
/s/ H. Brewster Atwater, Jr. /s/ William R. Pearce
H. Brewster Atwater, Jr. William R. Pearce
/s/ Lynne V. Cheney /s/ Alan K. Simpson
Lynne V. Cheney Alan K. Simpson
/s/ William H. Dudley /s/ Edson W. Spencer
William H. Dudley Edson W. Spencer
/s/ David R. Hubers /s/ John R. Thomas
David R. Hubers John R. Thomas
/s/ Heinz F. Hutter /s/ Wheelock Whitney
Heinz F. Hutter Wheelock Whitney
/s/ Anne P. Jones /s/ C. Angus Wurtele
Anne P. Jones C. Angus Wurtele
