AXP(SM) Cash
Management
Fund
2000 SEMIANNUAL REPORT
American
Express(R)
Funds
(icon of) clock
AXP Cash Management Fund seeks to provide shareholders with maximum current
income consistent with liquidity and stability of principal.
<PAGE>
A Cache for Cash
Keeping a portion of your investment portfolio in a cash reserve is a
cornerstone of a sound financial strategy. And a money market mutual fund that
stresses stability of your investment principal and easy access when you need it
is an excellent way to meet that need. That's what AXP Cash Management Fund is
all about.
Contents
From the Chairman 3
From the Portfolio Manager 3
Fund Facts 5
Financial Statements 6
Notes to Financial Statements 9
Investments in Securities 15
<PAGE>
(picture of) Arne H. Carlson
Arne H. Carlson
Chairman of the board
From the Chairman
We are in an extraordinary period for investing in financial assets, with many
stocks at their all-time highs. Looking at year 2000, American Express Financial
Corporation, the Fund's investment manager, expects the economy to continue to
grow and long-term interest rates to rise only slightly. This is a great time to
take a close look at your goals and investments. We encourage you to:
o Consult a professional investment adviser who can help you cut through
mountains of data.
o Set financial goals that extend beyond those achievable through retirement
plans of your employer.
o Learn as much as you can about your current investments.
The portfolio manager's letter that follows provides a review of the Fund's
investment strategies and performance. The annual report contains other
valuable information as well. The Fund's prospectus describes its investment
objectives and how it intends to achieve those objectives. As experienced
investors know, information is vital to making good investment decisions.
So, take a moment and decide again whether the Fund's investment objectives and
management style fit with your other investments to help you reach your
financial goals. And make it a practice on a regular basis to assess your
investment options.
On behalf of the Board,
Arne H. Carlson
<PAGE>
(picture of) Terry Fettig
Terry Fettig
Portfolio Manager
From the Portfolio Manager AXP Cash Management Fund's yield increased during the
first half of the fiscal year -- August 1999 through January 2000 -- reflecting
a rise in short-term interest rates. For the six months, the total return for
the Fund's Class A shares was 2.58% and the seven-day yield was +5.43%. (The
yield more closely reflects the current earnings of the money market fund than
does total return.) In keeping with its objective, the Fund maintained a $1 per
share price throughout the period.
(An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1 per share, it is possible to lose
money by investing in the Fund.)
THE FED RAISES RATES
Despite strong economic growth, higher oil prices and generally rising wages in
several business sectors, inflation remained remarkably low over the six months.
Nevertheless, the Federal Reserve Board (the Fed), evidently concerned that the
potential for a run-up in inflation had risen to an uncomfortable level, chose
to increase short-term interest rates three times during the period. (By way of
background, the Fed adjusts short-term interest rates based largely on the
condition of the economy and the inflation outlook. When the economy appears
weak and inflation is low, the Fed usually lowers rates to stimulate economic
growth. When the economy is especially strong and inflation threatens to pick
up, the Fed usually raises rates to rein in economic growth and thereby keep
inflation in check.) The rate increases came in quarter-percentage-point
increments, one each in June, August and November.
In response to the Fed's rate hikes, issuers of commercial paper -- the core of
the Fund's investment portfolio -- increased the interest rates on their
securities. As these new securities were added to the portfolio, the result was
a gradual increase in the Fund's yield over the six months. To more readily take
advantage of the higher yields that became available, I kept the average
maturity of the portfolio relatively short during the period -- 30 to 40 days.
That strategy allowed me to add new securities sooner than would have been
possible with a longer average maturity.
As the second half of the fiscal year begins, the inflation data have yet to
indicate that inflation is clearly on the upswing. But, given the ongoing
strength of the economy, I think it's likely that the Fed will decide to push
short-term interest rates still higher to guard against a spike in inflation as
the year progresses. Therefore, I plan to keep the portfolio's maturity
relatively short to take quicker advantage of the higher-yielding securities
that may come to market.
Terry Fettig
<PAGE>
Fund Facts
Class A -- 6-month performance
(All figures per share)
Net asset value (NAV)
Jan. 31, 2000 $1.00
July 31, 1999 $1.00
Increase $ --
Distributions -- Aug. 1, 1999 - Jan. 31, 2000
From income $0.02
From capital gains $ --
Total distributions $0.02
Total return* +2.58%**
7-day yield +5.43%***
Class B -- 6-month performance
(All figures per share)
Net asset value (NAV)
Jan. 31, 2000 $1.00
July 31, 1999 $1.00
Increase $ --
Distributions -- Aug. 1, 1999 - Jan. 31, 2000
From income $0.02
From capital gains $ --
Total distributions $0.02
Total return* +2.19%**
7-day yield +4.68%***
Class Y -- 6-month performance
(All figures per share)
Net asset value (NAV)
Jan. 31, 2000 $1.00
July 31, 1999 $1.00
Increase $ --
Distributions -- Aug. 1, 1999 - Jan. 31, 2000
From income $0.02
From capital gains $ --
Total distributions $0.02
Total return* +2.59%**
7-day yield +5.45%***
*Returns do not include sales load, the prospectus discusses the effect of
sales charges, if any, on the various classes.
**The total return is a hypothetical investment in the Fund with all
distributions reinvested.
***The yield quotation more closely reflects the current earnings of the
money market fund than the total return quotation.
<PAGE>
<TABLE>
<CAPTION>
Financial Statements
Statement of assets and liabilities
AXP Cash Management Fund
Jan. 31, 2000 (Unaudited)
Assets
Investments in securities, at value (Note 1)
<S> <C> <C>
(identified cost $5,831,519,225) $5,831,519,225
Cash in bank on demand deposit 36,105,748
Accrued interest receivable 3,314,384
---------
Total assets 5,870,939,357
-------------
Liabilities
Dividends payable to shareholders 8,583,617
Accrued investment management services fee 146,361
Accrued distribution fee 16,986
Accrued transfer agency fee 117,339
Accrued administrative services fee 11,063
Other accrued expenses 637,117
-------
Total liabilities 9,512,483
---------
Net assets applicable to outstanding capital stock $5,861,426,874
==============
Represented by
Capital stock-- $.01 par value (Note 1) $ 58,615,000
Additional paid-in capital 5,802,852,721
Excess of distributions over net investment income (1)
Accumulated net realized gain (loss) (40,846)
-------
Total -- representing net assets applicable to outstanding capital stock $5,861,426,874
==============
Net assets applicable to outstanding shares: Class A $5,438,767,436
Class B $ 274,723,183
Class Y $ 147,936,255
Net asset value per share of outstanding capital stock:
Class A shares 5,438,714,206 $ 1.00
Class B shares 274,799,061 $ 1.00
Class Y shares 147,986,730 $ 1.00
----------- --------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of operations
AXP Cash Management Fund
Six months ended Jan. 31, 2000 (Unaudited)
Investment income
Income:
<S> <C>
Interest $159,787,100
------------
Expenses (Note 2):
Investment management services fee 8,703,692
Distribution fee-- Class B 924,623
Transfer agency fee 5,207,190
Incremental transfer agency fee
Class A 444,061
Class B 20,603
Administrative services fees and expenses 685,728
Compensation of board members 11,715
Custodian fees 129,500
Printing and postage 1,081,831
Registration fees 435,633
Audit fees 17,500
Other 4,920
-----
Total expenses 17,666,996
Earnings credits on cash balances (Note 2) (1,007,715)
----------
Total net expenses 16,659,281
----------
Investment income (loss) -- net 143,127,819
-----------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on security transactions (Note 3) 59
--
Net increase (decrease) in net assets resulting from operations $143,127,878
------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statements of changes in net assets
AXP Cash Management Fund
Jan. 31, 2000 July 31, 1999
Six months ended Year ended
(Unaudited)
Operations and distributions
<S> <C> <C>
Investment income (loss)-- net $ 143,127,819 $ 218,190,831
Net realized gain (loss) on security transactions 59 (23,649)
-- -------
Net increase (decrease) in net assets resulting from operations 143,127,878 218,167,182
----------- -----------
Distributions to shareholders from:
Net investment income
Class A (134,440,384) ( 207,307,884)
Class B (5,363,529) (6,033,815)
Class Y (3,323,906) (4,849,592)
---------- ----------
Total distributions (143,127,819) (218,191,291)
------------ ------------
Capital share transactions at constant $1 net asset value
Proceeds from sales
Class A shares 8,797,516,434 15,895,546,321
Class B shares 287,601,538 357,419,278
Class Y shares 78,853,942 144,373,795
Reinvestment of distributions at net asset value
Class A shares 127,803,070 200,256,963
Class B shares 4,988,577 5,765,017
Class Y shares 3,123,107 4,610,370
Payments for redemptions
Class A shares (8,518,636,090) (14,989,493,703)
Class B shares (209,747,573) (268,882,804)
Class Y shares (58,048,424) (97,343,660)
----------- -----------
Increase (decrease) in net assets from capital share transactions 513,454,581 1,252,251,577
----------- -------------
Total increase (decrease) in net assets 513,454,640 1,252,227,468
Net assets at beginning of period 5,347,972,234 4,095,744,766
------------- -------------
Net assets at end of period $5,861,426,874 $ 5,347,972,234
============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
(Unaudited as to Jan. 31, 2000)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of AXP 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 nvests in money market securities.
AXP 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.
o Class A shares have no sales charge.
o Class B shares may be subject to a contingent deferred sales charge and
automatically convert to Class A shares during the ninth calendar year of
ownership.
o Class Y shares have no sales charge and are offered only to qualifying
institutional investors.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee and incremental transfer agency 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.
Fund's significant accounting policies are summarized below:
Use of estimates
Preparing financial statements that conform to generally accepted accounting
principles requires management to make estimates (e.g., on assets and
liabilities) that could differ from actual results.
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
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute substantially all
of its taxable income to shareholders. No provision for income or excise taxes
is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes. The character of distributions made during
the year from net investment income or net realized gains may differ from their
ultimate characterization for federal income tax purposes. Also, due to the
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gains (losses)
were recorded by the Fund.
Dividends to shareholders
Dividends from net investment income, declared daily and payable monthly, are
reinvested in additional shares of the Fund at net asset value or payable in
cash.
Other
Security transactions are accounted for on the date securities are purchased or
sold. Interest income, including amortization of premium and discount, is
accrued daily.
2. EXPENSES AND SALES CHARGES
The Fund has agreements with American Express Financial Corporation (AEFC) to
manage its portfolio and provide 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 0.36% to 0.25% 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. A minor
portion of additional administrative service expenses paid by the Fund are
consultants' fees and fund office expenses. Under this agreement, the Fund also
pays taxes, audit and certain legal fees, registration fees for shares,
compensation of board members, corporate filing fees 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 $24
o Class B $25
o Class Y $22
The Fund has agreements with American Express Financial Advisors Inc. (the
Distributor) for distribution and shareholder 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 services.
Sales charges received by the Distributor for distributing Class B shares were
$962,753 for the six months ended Jan. 31, 2000.
During the six months ended Jan. 31, 2000, the Fund's custodian and transfer
agency fees were reduced by $1,007,715 as a result of earnings credits from
overnight cash balances.
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities aggregated
$20,192,393,081 and $19,677,281,471, respectively, for the six months ended Jan.
31, 2000. Realized gains and losses are determined on an identified cost basis.
4. BANK BORROWINGS
The Fund has a revolving credit agreement with U.S. Bank, N.A., whereby the Fund
is permitted to have bank borrowings for temporary or emergency purposes to fund
shareholder redemptions. The Fund must have asset coverage for borrowings not to
exceed the aggregate of 333% of advances equal to or less than five business
days plus 367% of advances over five business days. The agreement, which enables
the Fund to participate with other American Express mutual funds, permits
borrowings up to $200 million, collectively. Interest is charged to each Fund
based on its borrowings at a rate equal to the Federal Funds Rate plus 0.30% or
the Eurodollar Rate (Reserve Adjusted) plus 0.20%. Borrowings are payable up to
90 days after such loan is executed. The Fund also pays a commitment fee equal
to its pro rata share of the amount of the credit facility at a rate of 0.05%
per annum. The Fund had no borrowings outstanding during the six months ended
Jan. 31, 2000.
<TABLE>
<CAPTION>
<PAGE>
5. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
AXP Cash Management Fund Fiscal period ended July 31,
Per share income and capital changesa
Class A
2000c 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income (loss) .02 .05 .05 .05 .05
Less distributions:
Dividends from net investment income (.02) (.05) (.05) (.05) (.05)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
Ratios/supplemental data
Net assets, end of period (in millions) $5,439 $5,032 $3,926 $3,094 $2,335
Ratio of expenses to average daily net assetsb 0.59%d .57% .56% .58% .63%
Ratio of net investment income (loss)
to average daily net assets 5.03%d 4.65% 5.15% 4.96% 4.97%
Total returne 2.58% 4.71% 5.34% 5.06% 5.12%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances. c Six months ended Jan. 31, 2000 (Unaudited).
d Adjusted to an annual basis.
e Total return does not reflect payment of a sales charge.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Fiscal period ended July 31,
Per share income and capital changesa
Class B Class Y
2000c 1999 1998 1997 1996 2000c 1999 1998 1997 1996
Net asset value, beginning
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income (loss) .02 .04 .04 .04 .04 .02 .05 .05 .05 .05
Less distributions:
Dividends from net
investment income (.02) (.04) (.04) (.04) (.04) (.02) (.05) (.05) (.05) (.05)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Ratios/supplemental data
Net assets, end of period
(in millions) $275 $192 $98 $147 $273 $148 $124 $72 $62 $57
Ratio of expenses to average
daily net assetsb 1.34%d 1.32% 1.32% 1.34% 1.38% .57%d .56% .56% .58% .62%
Ratio of net investment
income (loss) to average
daily net assets 4.34%d 3.88% 4.38% 4.14% 4.15% 5.07%d 4.64% 5.16% 4.96% 4.97%
Total returne 2.19% 3.94% 4.53% 4.27% 4.33% 2.59% 4.72% 5.33% 5.06% 5.11%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances. c Six months ended Jan. 31, 2000 (Unaudited).
d Adjusted to an annual basis.
e Total return does not reflect payment of a sales charge.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Investments in Securities
AXP Cash Management Fund
Jan. 31, 2000 (Unaudited)
(Percentages represent value of investments compared to net assets)
Certificates of deposit (12.7%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
Barclays New York Yankee
<S> <C> <C> <C> <C>
02-24-00 5.72% $30,000,000 $30,000,000
Canadian Imperial Bank Yankee
03-09-00 5.82 29,500,000 29,500,000
03-10-00 5.82 33,400,000 33,400,000
03-21-00 5.80 30,000,000 30,000,000
03-23-00 5.80 30,000,000 30,000,000
03-23-00 5.81 30,000,000 30,000,000
03-24-00 5.78 25,000,000 25,000,000
03-27-00 5.82 30,000,000 30,000,000
03-30-00 5.81 27,000,000 27,000,000
Societe Generale Yankee
02-03-00 5.90 25,000,000 25,000,000
03-08-00 5.78 33,400,000 33,400,000
03-16-00 6.06 30,000,000 30,000,000
04-04-00 5.90 25,000,000 25,000,000
04-06-00 5.88 30,000,000 30,000,000
04-07-00 5.91 30,000,000 30,000,000
04-10-00 5.88 30,000,000 30,000,000
06-30-00 6.00 25,000,000 25,000,000
U.S. Bank Minneapolis
04-14-00 5.15 5,000,000 5,000,000
Westdeutsche Landesbank Yankee
02-25-00 6.03 26,000,000 26,000,000
03-07-00 5.75 30,000,000 30,000,000
03-22-00 6.15 30,000,000 30,000,000
03-28-00 5.81 25,000,000 25,000,000
03-30-00 6.18 25,000,000 25,000,000
04-11-00 5.88 30,000,000 30,000,000
04-13-00 5.90 28,000,000 28,000,000
04-20-00 5.91 25,000,000 25,000,000
07-12-00 6.08 25,000,000 25,000,000
Total certificates of deposit
(Cost:$742,300,000) $742,300,000
Automotive & related (3.9%)
DaimlerChrysler North America
03-13-00 6.10 30,000,000 29,792,950
03-15-00 6.01 19,900,000 19,758,096
04-03-00 5.55 5,000,000 4,952,639
04-10-00 5.89 20,000,000 19,776,900
Ford Motor Credit
02-04-00 5.57 35,000,000 34,983,754
03-03-00 5.56 33,000,000 32,842,856
03-07-00 5.61 29,100,000 28,942,133
Toyota Motor Credit
02-01-00 6.00 8,400,000 8,400,000
02-07-00 6.05 25,000,000 24,974,833
03-01-00 5.37 22,300,000 22,203,893
Total 226,628,054
Banks and savings & loans (24.9%)
Abbey Natl North America
02-16-00 5.68 20,900,000 20,850,624
02-16-00 6.04 7,800,000 7,780,435
04-10-00 5.90 11,200,000 11,074,849
04-10-00 5.91 16,950,000 16,760,273
04-18-00 5.91 30,000,000 29,625,267
ABN Amro Canada
02-03-00 5.93 31,500,000 31,489,623
02-14-00 5.94 25,000,000 24,946,465
04-07-00 5.92 29,500,000 29,183,072
04-12-00 5.93 30,000,000 29,653,283
07-17-00 6.13 20,000,000 19,447,416
ANZ (Delaware)
02-01-00 6.00 30,500,000 30,500,000
02-14-00 6.03 25,000,000 24,945,698
02-22-00 5.85 12,500,000 12,457,490
03-15-00 6.01 19,000,000 18,864,514
04-13-00 5.90 30,000,000 29,650,200
04-18-00 5.89 30,000,000 29,626,550
Bank One Canada
02-08-00 5.94 15,000,000 14,982,704
02-10-00 5.95 23,700,000 23,664,806
02-23-00 5.72 28,000,000 27,902,467
03-07-00 5.80 29,500,000 29,334,513
03-14-00 5.83 26,500,000 26,320,993
03-15-00 5.83 25,000,000 24,827,104
03-20-00 5.80 31,000,000 30,761,920
03-27-00 5.80 25,000,000 24,780,382
03-29-00 5.81 25,000,000 24,772,000
04-19-00 5.91 20,600,000 20,339,341
Deutsche Bank Financial
02-02-00 5.96 21,000,000 20,996,523
02-07-00 5.82 13,300,000 13,287,121
03-22-00 5.80 24,000,000 23,808,333
03-24-00 5.80 23,000,000 22,808,972
03-30-00 5.85 24,000,000 23,775,733
03-31-00 5.76 30,000,000 29,719,258
04-03-00 5.76 30,000,000 29,705,500
04-05-00 5.83 30,000,000 29,692,267
04-05-00 5.87 25,000,000 24,741,778
04-06-00 5.87 45,700,000 45,220,594
04-12-00 5.88 28,600,000 28,272,002
Dresdner US Finance
02-01-00 5.94 25,000,000 25,000,000
03-08-00 5.76 25,000,000 24,856,750
03-09-00 5.76 23,500,000 23,361,605
03-13-00 5.76 25,000,000 24,837,139
03-14-00 5.78 9,600,000 9,535,656
03-20-00 5.76 28,800,000 28,580,352
03-20-00 5.79 25,000,000 24,808,333
03-28-00 5.80 24,400,000 24,181,945
04-11-00 5.88 35,000,000 34,604,597
04-13-00 5.88 25,000,000 24,709,250
04-27-00 5.91 23,000,000 22,679,674
First Union Natl Bank
05-19-00 5.35 3,000,000 3,000,000
Natl Australia Finance (Delaware)
02-01-00 5.94 25,500,000 25,500,000
02-02-00 5.95 25,000,000(b) 24,995,868
02-03-00 5.95 10,000,000 9,996,694
02-03-00 5.96 30,600,000 30,589,868
02-04-00 5.94 35,000,000 34,982,674
02-04-00 5.97 29,000,000 28,985,573
02-07-00 5.95 30,000,000 29,970,300
Societe Generale North America
03-21-00 5.78 20,000,000 19,844,017
03-21-00 5.79 15,000,000 14,882,808
04-20-00 5.91 22,100,000 21,817,261
Westpac Capital
02-02-00 6.02 24,400,000 24,395,920
07-18-00 6.08 18,000,000 17,503,560
Total 1,460,189,914
Broker dealers (17.4%)
Bear Stearns
02-04-00 5.98 10,000,000 9,995,017
02-07-00 5.86 10,000,000 9,990,250
02-09-00 5.87 25,000,000 24,967,444
02-15-00 5.91 24,600,000 24,543,557
02-15-00 5.98 25,000,000 24,941,958
02-17-00 6.04 22,400,000 22,340,068
02-28-00 5.34 10,000,000 9,960,100
02-28-00 5.99 25,000,000 24,888,250
04-07-00 5.54 10,000,000 9,899,533
04-13-00 5.53 13,000,000 12,857,780
04-17-00 5.91 20,000,000 19,753,422
04-18-00 5.88 8,500,000 8,394,371
04-19-00 5.87 25,000,000 24,685,833
04-21-00 5.61 10,000,000 9,876,889
04-21-00 5.94 30,000,000 29,609,333
Goldman Sachs Group
02-10-00 5.99 8,400,000 8,387,442
02-18-00 6.03 25,000,000 24,929,049
02-22-00 6.10 17,100,000 17,039,352
02-23-00 6.17 25,900,000 25,802,659
02-25-00 6.10 25,000,000 24,898,667
02-29-00 6.18 23,800,000 23,686,157
03-17-00 5.79 26,000,000 25,813,125
03-23-00 5.80 27,000,000 26,780,063
03-28-00 5.80 17,300,000 17,145,261
04-28-00 5.91 30,000,000 29,577,325
09-05-00 5.91 10,000,000(c) 10,000,000
Merrill Lynch
02-04-00 5.85 20,000,000 19,990,250
02-07-00 5.86 25,000,000 24,975,625
02-10-00 5.89 25,000,000 24,963,250
02-11-00 5.91 14,900,000 14,875,581
03-01-00 5.73 10,200,000 10,153,165
Morgan Stanley, Dean Witter, Discover & Co
02-01-00 6.02 30,000,000 30,000,000
02-08-00 6.02 28,000,000 27,967,279
02-10-00 5.89 21,000,000 20,969,130
02-16-00 6.12 19,200,000 19,151,200
03-22-00 5.76 28,500,000 28,273,979
03-28-00 5.78 8,400,000 8,325,128
03-29-00 5.79 25,000,000 24,772,792
04-14-00 5.87 25,000,000 24,705,972
04-25-00 5.91 26,000,000 25,646,313
Salomon Smith Barney
02-03-00 5.90 21,300,000 21,293,018
02-04-00 5.83 27,200,000 27,186,785
02-04-00 6.05 25,000,000 24,987,396
02-07-00 5.96 30,600,000 30,569,654
02-18-00 5.94 25,100,000 25,029,832
02-22-00 5.97 25,000,000 24,913,229
03-02-00 5.83 30,000,000 29,855,000
04-04-00 5.88 30,000,000 29,694,450
Total 1,019,061,933
Communications equipment & services (3.7%)
BellSouth Capital Funding
02-17-00 5.99 35,000,000(b) 34,907,133
04-05-00 5.80 18,800,000(b) 18,608,156
BellSouth Telecommunications
02-03-00 5.53 9,530,000 9,527,072
02-04-00 5.30 20,000,000 19,991,167
02-09-00 6.13 10,000,000 9,986,389
02-10-00 6.09 25,000,000 24,962,000
02-18-00 6.05 25,900,000 25,826,250
02-22-00 6.07 30,000,000 29,894,125
02-23-00 6.06 26,100,000 26,003,662
02-25-00 6.09 19,100,000 19,022,709
Total 218,728,663
Energy (1.5%)
Chevron Transport
02-04-00 5.87 10,000,000(b) 9,995,108
04-17-00 5.89 25,000,000(b) 24,692,833
Petrofina (Delaware)
02-14-00 6.03 20,000,000 19,956,522
02-15-00 6.11 10,000,000 9,976,278
03-10-00 5.73 25,000,000 24,849,584
Total 89,470,325
Financial services (10.6%)
AEGON Funding Corp
04-24-00 5.95 25,000,000(b) 24,661,660
Associates Corp North America
02-08-00 6.26 25,000,000 24,969,618
02-11-00 6.03 19,800,000 19,766,890
04-03-00 5.81 25,000,000 24,752,431
Associates First Capital
02-24-00 6.12 29,000,000 28,886,981
03-27-00 5.76 30,000,000 29,738,292
Barclays U.S. Funding
02-15-00 5.63 30,400,000 30,333,559
02-29-00 5.67 10,700,000 10,653,021
BBV Finance (Delaware)
03-01-00 5.83 25,500,000 25,380,858
BMW US Capital
02-15-00 5.63 16,000,000 15,965,031
02-16-00 6.08 9,200,000 9,176,770
02-22-00 6.07 15,000,000 14,947,063
CIT Group Holdings
02-02-00 5.86 25,000,000 24,995,931
03-01-00 5.77 30,700,000 30,558,046
03-09-00 5.76 30,800,000 30,618,613
Corporate Receivables
03-14-00 5.81 25,000,000(b) 24,831,708
Falcon Asset
04-17-00 5.94 24,500,000(b) 24,196,391
GMAC
02-01-00 5.83 27,700,000 27,700,000
02-09-00 5.83 27,000,000 26,965,080
02-25-00 5.67 13,100,000 13,050,657
02-28-00 5.66 16,200,000 16,131,474
03-14-00 6.02 15,100,000 14,994,652
04-24-00 5.90 26,600,000 26,243,072
04-26-00 5.91 27,400,000 27,022,831
04-28-00 5.90 25,000,000 24,648,375
Household Finance
03-06-00 5.75 30,800,000 30,633,611
Sheffield Receivables
02-11-00 5.91 20,000,000(b) 19,967,222
Total 621,789,837
Food (1.4%)
Cargill
02-01-00 5.83 30,000,000(b) 30,000,000
Cargill Global
03-10-00 5.31 10,000,000(b) 9,944,267
Heinz (HJ)
02-09-00 6.11 25,000,000 24,966,111
02-10-00 6.13 15,900,000 15,875,673
Total 80,786,051
Health care (0.8%)
Pfizer
02-11-00 6.11 30,000,000(b) 29,949,167
Schering
02-28-00 6.18 19,600,000 19,509,595
Total 49,458,762
Household products (0.8%)
Procter & Gamble
02-14-00 5.86 14,000,000 13,970,425
02-29-00 6.05 24,900,000 24,783,413
03-15-00 5.77 8,900,000 8,839,087
Total 47,592,925
Insurance (0.8%)
American General Finance
02-03-00 5.96 25,000,000 24,991,722
04-12-00 5.90 19,300,000 19,078,088
Total 44,069,810
Metals (1.3%)
Alcoa
02-17-00 5.66 16,700,000 16,658,064
04-25-00 5.90 17,000,000 16,769,140
04-25-00 5.91 25,000,000 24,659,917
04-26-00 5.90 20,000,000 19,725,167
Total 77,812,288
Miscellaneous (0.7%)
CXC
03-14-00 5.81 25,000,000(b) 24,831,709
USAA Capital
02-16-00 6.07 19,000,000 18,952,104
Total 43,783,813
Multi-industry conglomerates (4.0%)
Emerson Electric
02-16-00 6.02 17,700,000 17,655,750
GE Capital Intl Funding
03-31-00 5.80 25,000,000(b) 24,764,410
04-11-00 5.92 30,000,000(b) 29,658,750
04-27-00 5.91 25,000,000(b) 24,651,819
General Electric Capital
02-15-00 5.51 16,700,000 16,664,281
02-15-00 6.19 25,000,000 24,939,917
03-17-00 5.78 32,000,000 31,770,400
General Electric Capital Intl
02-08-00 5.95 27,000,000(b) 26,968,815
02-17-00 5.89 20,000,000(b) 19,947,822
02-17-00 6.14 16,500,000(b) 16,455,120
Total 233,477,084
Retail (0.1%)
Wal-Mart Stores
02-28-00 5.67 5,300,000(b) 5,277,541
Utilities -- electric (5.8%)
Duke Energy
02-18-00 6.12 26,600,000 26,523,377
02-22-00 6.07 25,000,000 24,911,771
Natl Rural Utilities
02-23-00 5.82 30,000,000 29,893,667
03-08-00 6.09 21,000,000 20,872,950
03-13-00 5.80 16,600,000 16,491,104
03-23-00 6.01 17,700,000 17,550,553
03-24-00 5.97 12,800,000 12,690,546
03-27-00 6.05 22,000,000 21,798,669
03-28-00 6.07 30,000,000 29,719,533
03-29-00 5.80 22,600,000 22,394,246
03-29-00 6.06 30,000,000 29,715,000
04-04-00 5.84 25,000,000 24,747,125
Northern States Power
03-21-00 6.02 20,700,000 20,531,795
UBS Finance (Delaware)
03-06-00 5.75 30,000,000 29,837,933
03-10-00 5.75 15,100,000 15,008,830
Total 342,687,099
Utilities -- gas (1.0%)
Gateway Fuel
02-02-00 5.83 28,745,000 28,740,345
02-24-00 6.12 30,825,000 30,704,868
Total 59,445,213
Utilities -- telephone (3.0%)
AT&T
03-16-00 5.74 32,000,000 31,777,066
03-17-00 5.79 30,000,000 29,784,375
03-20-00 5.75 13,900,000 13,794,175
Bell Atlantic Finance Services
03-13-00 5.75 4,000,000 3,973,988
Bell Atlantic Network Funding
02-07-00 6.21 25,000,000 24,974,167
03-06-00 5.83 15,300,000 15,216,190
03-13-00 5.77 3,000,000 2,980,423
GTE Funding
02-15-00 6.01 11,400,000 11,373,400
02-24-00 6.00 14,200,000 14,145,748
02-29-00 5.70 3,200,000 3,185,888
03-06-00 6.00 20,000,000 19,887,233
SBC Communications Capital
02-08-00 5.84 4,200,000 4,195,239
Total 175,287,892
Total commercial paper
(Cost: $4,795,547,204) $4,795,547,204
Bank of America-
AES Hawaii
02-16-00 5.86 24,000,000 23,941,500
03-02-00 5.94 20,000,000 19,901,500
03-03-00 5.83 21,600,000 21,492,120
03-03-00 6.04 20,000,000 19,896,494
03-24-00 5.79 29,500,000 29,255,412
04-14-00 5.89 39,300,000 38,836,195
04-19-00 5.89 20,000,000 19,747,800
Bank of New York-
River Fuel Trust
02-29-00 5.78 13,642,000(b) 13,580,990
Toronto Dominion Bank-
Presbyterian Healthcare Services
02-09-00 5.99 10,000,000 9,986,711
03-08-00 5.77 20,000,000 19,885,200
Union Bank Switzerland-
River Fuel Trust
03-02-00 5.78 10,780,000(b) 10,728,346
03-02-00 5.80 16,531,000(b) 16,451,513
04-03-00 5.89 15,715,000(b) 15,557,213
04-05-00 5.93 14,563,000(b) 14,411,027
Total letters of credit
(Cost: $273,672,021) $273,672,021
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Repurchase agreements (0.3%)
Issuer Rate Shares Value(a)
Morgan Guaranty
dated 01-31-00, matures 02-01-00, repurchase price
$10,001,572 (collateralized by U.S. Treasury STRIPS:
<S> <C> <C> <C> <C>
total market value $10,199,970) 5.66% $10,000,000 $10,000,000
State Street
dated 01-31-00, matures 02-01-00, repurchase price
$10,001,583 (collateralized by U.S. Treasury STRIPS:
total market value $10,201,750 5.70 10,000,000 10,000,000
Total repurchase agreements
(Cost: $20,000,000) $20,000,000
Total investments in securities
(Cost: $5,831,519,225)(d) $5,831,519,225
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 Jan. 31, 2000.
(d) Also represents the cost of securities for federal income tax purposes at
Jan. 31, 2000.
</TABLE>
<PAGE>
American
Express
Funds
AXP Cash Management Fund
200 AXP Financial Center
Minneapolis, MN 55474
TICKER SYMBOL
Class A:IDSXX Class B:N/A ClassY:IDYXX
PRSRT STD AUTO
U.S. POSTAGE
PAID
SPENCER, IA
PERMIT NO. 85
S-6322 N (3/00)
Distributed by American Express Financial Advisors Inc. Member NASD. American
Express Company is separate from American Express Financial Advisors Inc. and is
not a broker-dealer.
