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PAGE 1
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. 18 (File No. 2-93801)
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 19 (File No. 811-4133)
IDS MANAGED RETIREMENT FUND, INC.
IDS Tower 10, Minneapolis, Minnesota 55440-0010
Leslie L. Ogg - 901 S. Marquette Ave., 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 Jan. 28, 1994 pursuant to paragraph (b) of rule 485.
60 days after filing pursuant to paragraph (a).
on (date) pursuant to paragraph (a).
The registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to Section
24f-2 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 January 28, 1994.
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PAGE 2
Cross reference sheet showing location in the prospectus and the
statement of additional information called for by the items
enumerated in Part A and Part B of Form N-1A.
Negative answers omitted from Part A or Part B are so indicated.
<TABLE><CAPTION>
PART A PART B
Page Number in
Page Number Statement of
Item No. in Prospectus Item No. Additional Information
<S> <C> <S> <C>
1 3 10 26
2 5-6 11 27
3(a) 7 12 N/A
(b) N/A
(c) 7-9 13(a) 28-31;51-64
(b) 28-31
4(a) 5;10-13;21 (c) 29-30
(b) 10-13 (d) 33
(c) 10-13
14(a) 22-23*
5(a) 22-23 (b) 22-23*
(b) 25 (c) 23*
(c) N/A
(d) 23-24 15(a) N/A
(e) 24-25 (b) N/A
(f) 25 (c) 23*
6(a) 22 16(a) 25*
(b) N/A (b) 43-45
(c) N/A (c) N/A
(d) N/A (d) None
(e) 3 (e) N/A
(f) 16 (f) 46-47
(g) 17-18 (g) N/A
(h) 50;50
7(a) 24-25 (i) 45;50
(b) 9
(c) 14-15 17(a) 31-33
(d) 10-11 (b) 33-34
(e) N/A (c) 31-33
(f) 24-25 (d) 33
(e) 33
8(a) 11-12
(b) N/A
(c) 11 18(a) 22*
(d) 9 (b) N/A
9 None 19(a) 37-40
(b) 35-36
(c) N/A
20 43
21(a) 45-46
(b) 46
(c) N/A
22(a) N/A
(b) 34
23 68-90
*Designates page number in prospectus, which is hereby incorporated
in this Statement of Additional Information.
/TABLE
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PAGE 3
IDS Managed Retirement Fund
Prospectus
Jan. 28, 1994
The goal of IDS Managed Retirement Fund, Inc. is to maximize total
return through a combination of growth of capital and current
income.
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. The SAI, dated Jan. 28, 1994, is incorporated here by
reference. For a free copy contact IDS Shareholder Service.
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.
SHARES IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK, AND SHARES ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY.
IDS Shareholder Service
P.O. Box 534
Minneapolis, MN
55440-0534
612-671-3733
TTY: 800-846-4852
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Table of contents
The fund in brief
Goal
Types of fund investments
Manager and distributor
Portfolio manager
Sales charge and fund expenses
Sales charge
Operating expenses
Performance
Financial highlights
Total returns
Key terms
How to buy, exchange or sell shares
How to buy shares
How to exchange shares
How to sell shares
Reductions of the sales charge
Waivers of the sales charge
Special shareholder services
Services
Quick telephone reference
Distributions and taxes
Dividend and capital gain distributions
Reinvestments
Taxes
Investment policies
Facts about investments and their risks
Valuing assets
How the fund is organized
Shares
Voting rights
Shareholder meetings
Directors and officers
Investment manager and transfer agent
Distributor
About IDS
General information
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The fund in brief
Goal
IDS Managed Retirement Fund seeks to provide shareholders maximum
total return through a combination of growth of capital and current
income. Because any investment involves risk, achieving this goal
cannot be guaranteed. Only shareholders can change the goal.
Types of fund investments
The fund is a diversified mutual fund that invests in common and
preferred stocks, convertible securities, debt securities,
derivative instruments and money market instruments. The
investments are both U.S. and foreign. Under normal market
conditions, at least 50% of the fund's total assets will be in
common stocks. Some of the fund's investments may be considered
speculative and involve additional investment risks.
Manager and distributor
The fund is managed by IDS Financial Corporation (IDS), a provider
of financial services since 1894. IDS currently manages more than
$35 billion in assets for the IDS MUTUAL FUND GROUP. Shares of the
fund are sold through IDS Financial Services Inc., a wholly owned
subsidiary of IDS.
Portfolio manager
Richard Lazarchic joined IDS in 1979 and serves as portfolio
manager. He has managed this fund since 1993. He was associate
portfolio manager of IDS Mutual from 1988 through 1989 and served
as portfolio manager of IDS Utilities Income Fund from 1989 through
mid 1993. He also serves as portfolio manager for IDS Diversified
Equity Income Fund and is one of four portfolio managers of IDS
Strategy, Equity Fund.
Sales charge and fund expenses
Sales charge
When you buy shares, you pay a maximum sales charge of 5% of the
public offering price. This charge can be reduced, depending on
your total investments in IDS funds. See "Reductions of the sales
charge."
Shareholder transaction expenses
Maximum sales charge on purchases
(as a percent of offering price).................5%
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PAGE 6
Operating expenses
The fund pays certain expenses out of its assets; the expenses are
reflected in the fund's daily share price and dividends, and are
not charged directly to shareholder accounts. The following chart
gives a projection of these expenses -- based on historical
expenses.
Annual fund operating expenses
(% of average daily net assets):
Management fee 0.54%
12b-1 fee 0.07%
Other expenses 0.22%
Total 0.83%
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:
1 year 3 years 5 years 10 years
$58 $75 $94 $148
This example does not represent actual expenses, past or future.
Actual expenses may be higher or lower than those shown. Because
the fund pays annual distribution fees, shareholders who stay in
the fund for more than 20 years may indirectly pay an equivalent
of more than a 7.25% sales charge, the maximum permitted by the
National Association of Securities Dealers.
Fund expenses include fees paid to IDS for:
o managing its portfolio, providing investment research and
administrative services
o distribution (known as 12b-1 fees, after the federal rule that
authorizes them)
o transfer agent services, including handling shareholder
accounts and records.
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Performance
Financial highlights
<TABLE><CAPTION>
Fiscal period ended Nov. 30,
Per share income and capital changes*
1993 1992 1991 1990 1989 1988 1987 1986 1985**
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value $11.91 $11.08 $ 9.01 $10.05 $ 7.48 $6.82 $6.95 $5.61 $5.00
beginning of period
Income from investment operations:
Net investment income .17 .21 .20 .27 .26 .16 .13 .16 .15
Net gains (losses) on 1.07 2.04 2.45 (.39) 2.51 .66 (.13) 1.61 .62
securities (both
realized and unrealized)
Total from investment 1.24 2.25 2.65 (.12) 2.77 .82 -- 1.77 .77
operations
Less distributions:
Dividends from net (.19) (.21) (.27) (.25) (.20) (.16) (.13) (.16) (.14)
investment income
Distributions from (.80) (1.20) (.31) (.67) -- -- -- (.27) (.02)
realized gains
Excess distributions
of realized gains -- (.01) -- -- -- -- -- -- --
Total distributions (.99) (1.42) (.58) (.92) (.20) (.16) (.13) (.43) (.16)
Net asset value, $12.16 $11.91 $11.08 $ 9.01 $10.05 $7.48 $6.82 $6.95 $5.61
end of period
Ratios/supplemental data
1993 1992 1991 1990 1989 1988 1987 1986 1985**
Net assets,
end of period $1,845 $1,425 $1,007 $715 $700 $644 $673 $318 $84
(in millions)
Ratio of expenses to .83% .85% .90% .90% .92% .88% .88% .99% 1.08%***
average daily net assets
Ratio of net income 1.46% 1.94% 1.98% 2.94% 2.82% 2.07% 1.83% 2.78% 3.09%***
to average daily
net assets
Portfolio turnover 61% 46% 81% 78% 73% 102% 87% 127% 89%
rate (excluding
short-term securities)
Total return+ 11.2% 22.3% 30.9% (1.2%) 37.3% 12.0% (0.3%) 31.8% 15.6%++
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Commencement of operations. Period from Jan. 23, 1985 to Nov. 30, 1985.
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended Nov. 30, 1985, the annualized total return is 18.5%.
</TABLE>
The information in this table has been audited by KPMG Peat
Marwick, independent auditors. The independent auditors' report
and additional information about the performance of the fund is
contained in the fund's annual report which, if not included with
this prospectus, may be obtained without charge.
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Total returns
Average annual total returns as of Nov. 30, 1993
Purchase 1 year 5 years Since
made ago ago inception*
Managed Retirement + 5.6% +18.0% +16.6%
S&P 500 +10.1% +14.7% +15.1%
Lipper Growth and
Income Fund Index +14.0% +13.2% +13.8%
*Jan. 23, 1985
Cumulative total returns as of Nov. 30, 1993
Purchase 1 year 5 years Since
made ago ago inception*
Managed Retirement + 5.6% +129.3% +290.2%
S&P 500 +10.1% + 98.3% +246.9%
Lipper Growth and
Income Fund Index +14.0% + 85.9% +213.0%
*Jan. 23, 1985
These examples show total returns from hypothetical investments in
the fund. These returns are compared to those of popular indexes
for the same periods.
For purposes of calculation, information about the fund assumes a
sales charge of 5%, makes no adjustments for taxes an investor may
have paid on the reinvested income and capital gains, and covers a
period of widely fluctuating securities prices. Returns shown
should not be considered a representation of the fund's future
performance.
The fund invests in common stocks that may be different from those
in the indexes. The indexes reflect reinvestment of all
distributions and changes in market prices, but exclude brokerage
commissions or other fees.
Standard & Poor's 500 Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
Lipper Growth and Income Fund Index, published by Lipper Analytical
Services, Inc., includes 30 funds that are generally similar to
this fund, although some funds in the index may have somewhat
different investment policies or objectives.
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PAGE 9
Key terms
Net asset value (NAV) - Value of a single fund share. It is the
total market value of all of a fund's investments and other assets,
less any liabilities, divided by the number of shares outstanding.
The NAV is the price you receive when you sell your shares. It
usually changes from day to day, and 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).
Public offering price - Price at which you buy shares. It is the
NAV plus the sales charge. NAVs and public offering prices of IDS
funds are listed each day in major newspapers and financial
publications.
Investment income - Dividends and interest earned on securities
held by the fund.
Capital gains or losses - Increase or decrease in value of the
securities the fund holds. Gains are realized when securities that
have increased in value are sold. A fund also may have unrealized
gains or losses when securities increase or decrease in value but
are not sold.
Distributions - Payments to shareholders of two types: investment
income (dividends) and realized net long-term capital gains
(capital gains distributions).
Total return - Sum of all of your returns for a given period,
assuming you reinvest all distributions. Calculated by taking the
total value of shares you own at the end of the period (including
shares acquired by reinvestment), less the price of shares you
purchased at the beginning of the period.
Average annual total return - The annually compounded rate of
return over a given time period (usually two or more years) --
total return for the period converted to an equivalent annual
figure.
How to buy, exchange or sell shares
How to buy shares
If you're investing in this fund for the first time, you'll need to
set up an account. Your financial planner will help you fill out
and submit an application. Once your account is set up, you can
choose among several convenient ways to invest.
Important: When opening an account, you must provide IDS with your
correct Taxpayer Identification Number (Social Security or Employer
Identification number). See "Distributions and taxes."
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PAGE 10
When you buy 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, IDS,
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 IDS and the fund are not responsible for any delays that occur
in wiring funds, including delays in processing by the bank.
o You must pay any fee the bank charges for wiring.
o The fund reserves the right to reject any application for any
reason.
Three ways to invest
<TABLE><CAPTION>
1
<S> <C> <C>
By regular account Send your check and application Minimum amounts
(or your name and account number Initial investment: $2,000
if you have an established account) Additional
to: investments: $ 100
IDS Financial Services Inc. Account balances: $ 300*
P.O. Box 74 Qualified retirement
Minneapolis, MN 55440-0074 accounts: none
Your financial planner will help
you with this process.
2
By scheduled Contact your financial planner Minimum amounts
investment plan to set up one of the following Initial investment: $100
scheduled plans: Additional
investments: $100/mo
o automatic payroll deduction Account balances: none
(on active plans of
o bank authorization monthly payments)
o direct deposit of
Social Security check
o other plan approved by the fund
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3
By wire If you have an established account, If this information is not
you may wire money to: included, the order may be
rejected and all money
Norwest Bank Minneapolis received by the fund, less
Routing No. 091000019 any costs the fund or IDS
Minneapolis, MN incurs, will be returned
Attn: Domestic Wire Dept. promptly.
Give these instructions: Minimum amounts
Credit IDS Account #00-30-015 Each wire investment: $1,000
for personal account # (your
account number) for (your name).
*If your account balance falls below $300, IDS will ask you in writing to bring it up to $300 or establish a scheduled
investment plan. If you don't do so within 30 days, your shares can be redeemed and the proceeds mailed to you.
</TABLE>
How to exchange shares
You can exchange your shares of the fund at no charge for shares of
any other publicly offered fund in the IDS MUTUAL FUND GROUP
available in your state, except IDS Planned Investment Account.
For complete information, including fees and expenses, read the
prospectus carefully before exchanging into a new fund.
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 sale 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.
How to sell shares
You can sell (redeem) your shares at any time. IDS Shareholder
Service will mail payment within seven days after receiving your
request.
When you sell shares, the amount you receive may be more or less
than the amount you invested. Your shares will be redeemed at net
asset value 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 at the close of business on the next business day.
A redemption is a taxable transaction. If the fund's net asset
value when you sell shares is more or less than the cost of your
shares, you will have a gain or loss, which can affect your tax
liability. Redeeming shares held in an IRA or qualified retirement
account may subject you to certain federal taxes, penalties and
reporting requirements. Consult your tax adviser.
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PAGE 12
<TABLE><CAPTION>
Two ways to request an exchange or sale of shares
1
<S> <C>
By letter Include in your letter:
o the name of the fund(s)
o your account number(s) (for exchanges, both funds must
Regular mail: be registered in the same ownership)
IDS Shareholder Service o your Taxpayer Identification Number (TIN)
Attn: Redemptions o the dollar amount or number of shares you want to
P.O. Box 534 exchange or sell
Minneapolis, MN o signature of all registered account owners
55440-0534 o for redemptions, indicate how you want your sales
proceeds delivered to you
o any paper certificates of shares you hold
Express mail:
IDS Shareholder Service
Attn: Redemptions
10th Floor
733 Marquette Ave.
Minneapolis, MN 55402
2
By phone
IDS Telephone Transaction o The fund and IDS will honor any telephone exchange
Service: or redemption request believed to be authentic and will
800-437-3133 or use reasonable procedures to confirm that they are. This
612-671-3800 includes asking identifying questions and tape recording
calls. So long as reasonable procedures are followed,
neither the fund nor IDS will 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 IDS Shareholder Service.
Each registered owner must sign the request.
o IDS 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 Phone privileges may be modified or discontinued at any
time.
Minimum amount
Redemption: $100
Maximum amount
Redemption: $50,000
</TABLE>
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
scheduled exchange programs and 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 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.
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PAGE 13
o If your shares are pledged as collateral, the exchange will be
delayed until written approval is obtained from the secured party.
o IDS 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 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
buy new shares in the same account at the net asset value, rather
than the offering price on the date of a new purchase. To do so,
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. Please expect a minimum of
10 days from the date of purchase before IDS mails a check to you.
(A check may be mailed earlier if your bank provides evidence
satisfactory to the fund and IDS that your check has cleared.)
<TABLE><CAPTION>
Three ways to receive payment when you sell shares
1
<S> <C>
By regular or express mail o Mailed to the address on record.
o Payable to names listed on the account.
NOTE: The express mail delivery charges
you pay will vary depending on the
courier you select.
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 account.
NOTE: Pre-authorization required. For
instructions, contact your financial
planner or IDS Shareholder Service.
3
By scheduled payout plan o Minimum payment: $50.
o Contact your financial planner or IDS
Shareholder Service to set up regular
payments to you on a monthly, bimonthly,
quarterly, semiannual or annual basis.
o Buying new shares while under a payout
plan may be disavantageous because of
sales charges.
</TABLE>
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PAGE 14
Reductions of the sales charge
You pay a 5% sales charge on the first $50,000 of your total
investment and less on investments after the first $50,000:
Total investment Sales charge as a
percent of:*
Public Net
offering amount
price invested
Up to $50,000 5.0% 5.26%
Next $50,000 4.5 4.71
Next $150,000 4.0 4.17
Next $250,000 3.0 3.09
Next $500,000 2.0 2.04
Next $2,000,000 1.0 1.01
More than $3,000,000 0.5 0.50
* To calculate the actual sales charge on an investment greater
than $50,000, amounts for each applicable increment must be
totaled. See the SAI.
Your sales charge may be reduced, depending on the totals of:
o the amount you are investing in this fund now,
o the amount of your existing investment in this fund, if any, and
o the amount you and your immediate family (spouse or unmarried
children under 21) are investing or have in other funds in the IDS
MUTUAL FUND GROUP that carry a sales charge.
Other policies that affect your sales charge:
o IDS Cash Management Fund, IDS Tax-Free Money Fund and IDS
Planned Investment Account do not carry sales charges. However,
you may count investments in these funds if you acquired shares in
them by exchanging shares from IDS funds that carry sales charges.
o IRA purchases or other employee benefit plan purchases made
through a payroll deduction plan or through a plan sponsored by an
employer, association of employers, employee organization or other
similar entity, may be added together to reduce sales charges for
all shares purchased through that plan.
For more details, see the SAI.
<PAGE>
PAGE 15
Waivers of the sales charge
Sales charges do not apply to:
o Current or retired trustees, directors, officers or employees of
the fund or IDS or its subsidiaries, their spouses and unmarried
children under 21.
o Current or retired IDS planners, their spouses and unmarried
children under 21.
o Qualified employee benefit plans* if the plan:
- has at least $1 million invested in funds of the IDS MUTUAL
FUND GROUP; or
- has 500 or more participants; or
- uses a daily transfer recordkeeping service offering
participants daily access to IDS funds.
(Participants in certain qualified plans for which the initial
sales charge is waived may be subject to a deferred sales charge of
up to 4% on certain redemptions. For more information, see the
SAI.)
o Trust companies or similar institutions, and charitable
organizations that meet the definition in Section 501(c)(3) of the
Internal Revenue Code.* These must have at least $1 million
invested in funds of the IDS MUTUAL FUND GROUP.
o Purchases made within 30 days after a redemption of shares (1)
of an IDS product in a qualified plan subject to a deferred sales
charge or (2) in IDS Strategy Fund up to the amount redeemed. Send
the fund a written request along with your payment, indicating the
amount of the redemption and the date on which it occurred.
o Purchases made with dividend or capital gain distributions from
another fund in the IDS MUTUAL FUND GROUP that has a sales charge.
*Eligibility must be determined in advance by IDS. To do so,
contact your financial planner.
Special shareholder services
Services
To help you track and evaluate the performance of your investments,
IDS provides these services:
Quarterly statements listing all of your holdings and transactions
during the previous three months.
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.
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PAGE 16
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
planner.
Quick telephone reference
IDS 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
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
Distributions and taxes
The fund distributes to shareholders investment income and net
capital gains. It does so to qualify as a regulated investment
company and to avoid paying corporate income and excise taxes.
Dividend and capital gains distributions will have tax consequences
you should know about.
Dividend and capital gain distributions
The fund distributes its net investment income (dividends and
interest earned on securities held by the fund, less operating
expenses) to shareholders of record at the end of each calendar
quarter. Short-term capital gains distributed are included in net
investment income. Net realized capital gains, if any, from
selling securities are distributed at the end of the calendar year.
Before they're distributed, both net investment income and net
capital gains are included in the value of each share. After
they're distributed, the value of each share drops by the per-share
amount of the distribution. (If your distributions are reinvested,
the total value of your holdings will not change.)
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PAGE 17
Reinvestments
Dividends and capital gain distributions are automatically
reinvested in additional shares of the fund, unless:
o you request the fund in writing or by phone to pay
distributions to you in cash, or
o you direct the fund to invest your distributions in any
publicly available IDS fund for which you've previously opened
an account, except for IDS Planned Investment Account.
You pay no sales charge on shares purchased through reinvestment in
any IDS fund. The reinvestment price is the net asset value at
close of business on the day the distribution is paid. (Your
quarterly statement from IDS will confirm the amount invested and
the number of shares purchased.)
If you choose cash distributions, you will receive only those
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.
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 pays them regardless of whether you take them in cash
or reinvest them.
Each January, IDS sends you a statement showing the kinds and total
amount of all distributions you received during the previous year.
You must report all distributions on your tax returns, even if they
are reinvested in additional shares.
"Buying a dividend" creates a tax liability. This means buying
shares shortly before a net investment income or a capital gain
distribution. You pay the full pre-distribution price for the
shares, then receive a portion of your investment back as a
distribution, which is taxable.
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 either short term (for shares held
for one year or less) or long term (for shares held for more than
one year).
<PAGE>
PAGE 18
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 at IDS.
If you don't provide the TIN to IDS, 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.
How to determine the correct TIN
Use the Social Security or
For this type of account: Employer Identification number
of:
Individual or joint account The individual or first person
listed on the account
Custodian account of a minor The minor
(Uniform Gift/Transfer to Minors
Act)
A living trust The grantor-trustee (the person
who puts the money into the
trust)
An irrevocable trust, pension The legal entity (not the
trust or estate personal representative or
trustee, unless no legal entity
is designated in the account
title)
Sole proprietorship or The owner or partnership
partnership
Corporate The corporation
Association, club or The organization
tax-exempt organization
<PAGE>
PAGE 19
For details on TIN requirements, ask your financial planner or
local IDS 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 adviser about your personal situation.
Investment policies
The fund invests in common and preferred stocks, convertible
securities, debt securities, derivative instruments and money
market instruments. The investments are both U.S. and foreign.
Under normal market conditions, at least 50% of the fund's total
assets will be invested in common stocks. Stocks and debt
securities will be selected for capital appreciation, income or
both, based on the portfolio manager's assessment of market
conditions.
The various types of investments the portfolio 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
Common stocks: Common stocks are subject to market fluctuations.
Stocks of larger, established companies that pay dividends may be
less volatile than the stock market as a whole.
Preferred stocks: If a company earns a profit, it generally must
pay its preferred stockholders a dividend at a pre-established
rate.
Convertible securities: These securities generally are preferred
stocks or bonds that can be exchanged for other securities, usually
common stock, at prestated prices. When the trading price of the
common stock makes the exchange likely, the convertible securities
trade more like common stock.
Debt securities: The price of an investment-grade bond fluctuates
as interest rates change or if its credit rating is upgraded or
downgraded. The fund only invests in bonds given the four highest
ratings by Moody's Investors Services, Inc. or by Standard & Poor's
Corporation or in bonds of comparable quality in the judgment of
the fund's portfolio manager. Securities that are subsequently
downgraded in quality may continue to be held by the fund, and will
be sold only if the fund's portfolio manager believes it is
advantageous to do so.
<PAGE>
PAGE 20
Foreign investments: Securities of foreign companies and
governments may be traded in the United States, but often they are
traded only on foreign markets. Frequently, there is less
information about foreign companies and less government supervision
of foreign markets. Foreign investments are subject to political
and economic risks of the countries in which the investments are
made including the possibility of seizure or nationalization of
companies, imposition of withholding taxes on income, establishment
of exchange controls or adoption of other restrictions that might
affect an investment adversely. If an investment is made in a
foreign market, the local currency must be purchased. This is done
by using a forward contract in which the price of the foreign
currency in U.S. dollars is established on the date the trade is
made, but delivery of the currency is not made until the securities
are received. As long as the fund holds foreign currencies or
securities valued in foreign currencies, the price of a fund share
will be affected by changes in the value of the currencies relative
to the U.S. dollar. Because of the limited trading volume in some
foreign markets, efforts to buy or sell a security may change the
price of the security, and it may be difficult to complete the
transaction. The fund may invest up to 25% of its total assets in
foreign investments.
Derivative instruments: The portfolio manager may use derivative
instruments in addition to securities to achieve investment
performance. Derivative instruments include futures, options and
forward contracts. Such instruments may be used to maintain cash
reserves while remaining fully invested, to offset anticipated
declines in values of investments, to facilitate trading, to reduce
transaction costs, or to pursue higher investment returns.
Derivative instruments are characterized by requiring little or no
initial payment and a daily change in price based on or derived
from a security, a currency, a group of securities or currencies,
or an index. A number of strategies or combination of instruments
can be used to achieve the desired investment performance
characteristics. A small change in the value of the underlying
security, currency or index will cause a sizable gain or loss in
the price of the derivative instrument. Derivative instruments
allow the portfolio manager to change the investment performance
characteristics very quickly and at lower costs. Risks include
losses of premiums, rapid changes in prices, defaults by other
parties, and inability to close such instruments. The fund will
use derivative instruments only to achieve the same investment
performance characteristics it could achieve by directly holding
those securities and currencies permitted under the investment
policies. Subject to SEC guidelines, the fund will set aside cash
or appropriate liquid assets in a segregated account to cover its
portfolio obligations. No more than 5% of the fund's net assets
can be used at any one time for good faith deposits on futures and
premiums for options on futures that do not offset existing
investment positions. For further information, see the options and
futures appendix in the SAI.
<PAGE>
PAGE 21
Securities and derivative instruments that are illiquid: Illiquid
means the security or derivative instrument cannot be sold quickly
in the normal course of business. Some investments cannot be
resold to the U.S. public because of their terms or government
regulations. All securities and derivative instruments, however,
can be sold in private sales, and many may be sold to other
institutions and qualified buyers or on foreign markets. The
portfolio manager will follow guidelines established by the board
of directors and consider relevant factors such as the nature of
the security and the number of likely buyers when determining
whether a security is illiquid. No more than 10% of the fund's net
assets will be held in securities and derivative instruments that
are illiquid.
Money market instruments: Short-term debt securities rated in the
top two grades are used to meet daily cash needs and at various
times to hold assets until better investment opportunities arise.
Generally less than 25% of the fund's assets are in these money
market instruments. However, for temporary defensive purposes
these investments could exceed that amount for a limited period of
time.
The investment policies described above may be changed by the board
of directors.
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 shareholders approve otherwise, loans may not exceed 30% of
the fund's net assets.
Valuing assets
o Securities (except bonds) and assets with available market
values are valued on that basis.
o Securities maturing in 60 days or less are valued at amortized
cost.
o Bonds and assets without readily available market values are
valued according to methods selected in good faith by the
board of directors.
How the fund is organized
The fund is a diversified, open-end management investment company,
as defined in the Investment Company Act of 1940. It was
incorporated on Oct. 9, 1984 in Minnesota. The fund headquarters
are at 901 S. Marquette Ave., Suite 2810, Minneapolis, MN 55402-
3268.
<PAGE>
PAGE 22
Shares
The fund is owned by its shareholders. All shares issued by the
fund are of the same class -- capital stock. Par value is 1 cent
per share. Both full and fractional shares can be issued.
The fund no longer issues stock certificates.
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.
Shareholder meetings
The fund does not hold annual shareholder meetings. However, the
directors may call meetings at their discretion, or on demand by
holders of 10% or more of the outstanding shares, to elect or
remove directors.
Directors and officers
Shareholders elect a board of directors who oversee the operations
of the fund and choose 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. The directors
also serve on the boards of all of the other funds in the IDS
MUTUAL FUND GROUP, except for Mr. Dudley, who is a director of all
publicly offered funds.
Directors and officers of the fund
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
Independent directors
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs, The
Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer, Minnesota Mining and
Manufacturing Company (3M).
<PAGE>
PAGE 23
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
Interested directors who are partners in law firms that have
represented IDS subsidiaries
Anne P. Jones
Partner, law firm of Sutherland, Asbill & Brennan.
Aulana L. Peters
Partner, law firm of Gibson, Dunn & Crutcher.
Interested directors who are officers and/or employees of IDS
William H. Dudley
Executive vice president, IDS.
David R. Hubers
President and chief executive officer, IDS.
John R. Thomas
Senior vice president, IDS.
Other officer
Leslie L. Ogg
Vice president of all funds in the IDS MUTUAL FUND GROUP and
general counsel and treasurer of the publicly offered funds.
Refer to the SAI for the directors' and officers' biographies.
Investment manager and transfer agent
The fund pays IDS for managing its portfolio, providing
administrative services and serving as transfer agent (handling
shareholder accounts).
Under its Investment Management and Services Agreement, IDS
determines which securities will be purchased, held or sold
(subject to the direction and control of the fund's board of
directors). For these services the fund pays IDS a two-part fee.
The first part is based on the combined average daily net assets of
all funds in the IDS MUTUAL FUND GROUP, as follows:
<PAGE>
PAGE 24
Net assets of
IDS MUTUAL Annual
FUND GROUP* fee
First $5 billion 0.46%
Each additional Decreasing
$5 billion percentages
More than $50 billion 0.32%
*Includes all funds except the money market funds.
The second part is equal to 0.14% of the fund's average daily net
assets during the fiscal year. This fee may be increased or
decreased by a performance adjustment based on the Lipper Growth
and Income Fund Index. The maximum adjustment is 0.08% of the
fund's average daily net assets on an annual basis.
For the fiscal year ended Nov. 30, 1993, the fund paid IDS a total
investment management fee of 0.54% of its average daily net assets.
Under the Agreement, the fund also pays taxes, brokerage
commissions and nonadvisory expenses.
In addition, under a separate Transfer Agency Agreement, IDS
maintains shareholder accounts and records. The fund pays IDS an
annual fee of $15 per shareholder account for this service.
Distributor
The fund sells shares through IDS Financial Services Inc., a wholly
owned subsidiary of IDS, under a Distribution Agreement. Financial
planners representing IDS Financial Services Inc. provide
information to investors about individual investment programs, the
fund and its operations, new account applications, exchange and
redemption requests. The cost of these services is paid partially
by the fund's sales charge.
Portions of sales charges may be paid to securities dealers who
have sold the fund's shares, or to banks and other financial
institutions. The proceeds paid to others range from 0.8% to 4% of
the fund's offering price depending on the monthly sales volume.
To help defray costs not covered by sales charges, including costs
for marketing, sales administration, training, overhead, direct
marketing programs, advertising and related functions, the fund
pays IDS a 12b-1 fee. This fee is paid under a Plan and
Supplemental Agreement of Distribution that follows the terms of
Rule 12b-1 of the Investment Company Act of 1940 (and a Securities
and Exchange Commission order). Under this Agreement, the fund
pays IDS $6 per shareholder account per year. The total 12b-1 fee
paid by the fund for the year ended Nov. 30, 1993 was 0.07% of its
average daily net assets. This fee will not cover all of the costs
incurred by IDS.
<PAGE>
PAGE 25
Total management and distribution fees and expenses paid by the
fund in the fiscal year ended Nov. 30, 1993 were 0.83% of its
average daily net assets.
Total fees and expenses (excluding taxes and brokerage commissions)
cannot exceed the most restrictive applicable state expense
limitation.
About IDS
General information
The IDS 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 publicly offered funds in the
IDS MUTUAL FUND GROUP, IDS also manages investments for itself and
its subsidiaries, IDS Certificate Company and IDS Life Insurance
Company. Total assets under management on Nov. 30, 1993 were more
than $97 billion.
IDS Financial Services Inc. serves individuals and businesses
through its nationwide network of more than 175 offices and more
than 7,500 planners.
Other IDS subsidiaries provide investment management and related
services for pension, profit sharing, employee savings and
endowment funds of businesses and institutions.
IDS is located at IDS Tower 10, Minneapolis, MN 55440-0010. It is
a wholly owned subsidiary of American Express Company, 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 American Express and
IDS.
<PAGE>
PAGE 26
STATEMENT OF ADDITIONAL INFORMATION
FOR
IDS MANAGED RETIREMENT FUND
Jan. 28, 1994
This Statement of Additional Information (SAI) is not a prospectus.
It should be read together with the fund's prospectus and the
financial statements contained in the fund's Annual Report which
may be obtained from your IDS personal financial planner or by
writing to IDS Shareholder Service, P.O. Box 534, Minneapolis, MN
55440-0534.
This SAI is dated Jan. 28, 1994, and it is to be used with the
fund's prospectus dated Jan. 28, 1994, and the fund's Annual Report
for the fiscal year ended Nov. 30, 1993.
<PAGE>
PAGE 27
TABLE OF CONTENTS
Goal and Investment Policies......................See Prospectus
Additional Investment Policies................................p. 3
Portfolio Transactions........................................p. 6
Brokerage Commissions Paid to Brokers Affiliated with IDS.....p. 8
Performance Information.......................................p. 9
Valuing Fund Shares...........................................p. 10
Investing in the Fund.........................................p. 12
Redeeming Shares..............................................p. 15
Pay-out Plans.................................................p. 16
Exchanges.....................................................p. 17
Taxes.........................................................p. 18
Agreements....................................................p. 18
Directors and Officers........................................p. 22
Custodian.....................................................p. 25
Independent Auditors..........................................p. 25
Financial Statements..............................See Annual Report
Prospectus....................................................p. 25
Appendix A: Description of the Four Highest Corporate
Bond Ratings and Additional Information on
Investment Policies..............................p. 26
Appendix B: Foreign Currency Transactions....................p. 28
Appendix C: Options and Futures Contracts....................p. 33
Appendix D: Dollar-Cost Averaging............................p. 40
<PAGE>
PAGE 28
ADDITIONAL INVESTMENT POLICIES
In addition to the investment goal and policies presented in the
prospectus, the fund has investment policies stated below that will
not be changed unless holders of a majority of the outstanding
shares agree to make the change.
These policies state the fund will not:
'Invest more than 5% of its total assets, at market value, 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, and except that up to 25% of the fund's total
assets may be invested without regard to this 5% limitation.
'Purchase more than 10% of the outstanding voting securities of an
issuer.
'Concentrate in any one industry. According to the present
interpretation by the Securities and Exchange Commission (SEC),
this means no more than 25% of the fund's total assets, based on
current market value at time of purchase, can be invested in any
one industry.
'Invest more than 5% of its total assets, at cost, in securities of
companies, including any predecessors, that have a record of less
than three years continuous operations.
'Invest in securities of other investment companies except by
purchases in the open market where the dealer's or sponsor's profit
is the regular commission. If any such investment is made, not
more than 10% of the fund's net assets, at market, will be so
invested. The fund has not invested in securities of investment
companies in the past and has no present intention of investing in
these securities.
'Buy or sell real estate, real estate mortgage loans, commodities
or commodity contracts, except the fund may enter into futures
contracts.
'Buy on margin or sell short, except it may make margin payments in
connection with transactions in futures contracts.
'Invest in a company to control or manage it.
'Pledge or mortgage its assets beyond 15% of the cost of total
assets. If the fund were ever to do so, valuation of the pledged
or mortgaged assets would be based on market values. For purposes
of this restriction, collateral arrangements for margin deposits on
futures contracts are not deemed to be a pledge of assets.
<PAGE>
PAGE 29
'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.
'Make cash loans. The fund, however, does make investments in debt
securities where the seller agrees to repurchase the securities at
cost plus an agreed-upon interest rate within a specified period of
time.
'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.
'Make a loan of any part of its assets to IDS Financial Corporation
(IDS), to the directors and officers of IDS or to its own directors
and officers.
'Purchase securities of an issuer if the directors and officers of
the fund and of IDS hold more than a certain percentage of the
issuer's outstanding securities. The holdings of all directors and
officers of the fund and of IDS 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.
'Issue senior securities, except that this restriction shall not be
deemed to prohibit the fund from borrowing money from banks,
lending its securities, or entering into repurchase agreements,
options or futures contracts.
'Lend portfolio securities in excess of 30% of its net assets, at
market value. This policy may not be changed without shareholder
approval. The current policy of the fund's board of directors is
to make these loans, either long- or short-term, to broker-dealers.
In making such loans the fund gets 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 of directors. 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. During
the existence of the loan, the fund receives cash payments
equivalent to all interest or other distributions paid on the
loaned securities. A loan will not be made unless the investment
manager believes the opportunity for additional income outweighs
the risks.
Unless changed by the board of directors, the fund will not:
'Invest in exploration or development programs, such as oil, gas or
mineral programs.
<PAGE>
PAGE 30
'Invest in a company if the fund's investments would result in
total holdings of all funds in the IDS MUTUAL FUND GROUP being in
excess of 15% of that company's issued shares.
'Invest more than 5% of its net assets in warrants. Under one
state's law no more than 2% of the fund's net assets may be
invested in warrants not listed on an exchange.
'Invest more than 10% of the fund's net assets in illiquid
securities and derivative instruments. For purposes of this policy
illiquid securities include some privately placed securities,
public securities and Rule 144A securities that for one reason or
another may no longer have a readily available market, repurchase
agreements with maturities greater than seven days, non-negotiable
fixed-time deposits and over-the-counter options.
The fund may invest in Rule 144A securities, which are unregistered
securities offered to qualified institutional buyers, and interest-
only and principal-only fixed mortgage-backed securities (IOs and
POs) issued by the United States government or its agencies and
instrumentalities. In determining the liquidity of Rule 144A
securities, IOs and POs, the investment manager, under guidelines
established by the board of directors, will consider any relevant
factors including the frequency of trades, the number of dealers
willing to purchase or sell the security and the nature of
marketplace trades.
The fund may invest in commercial paper issued in transactions not
involving a public offering under Section 4(2) of the Securities
Act of 1933 (4(2) paper). In determining the liquidity of 4(2)
paper, the investment manager, under guidelines established by the
board of directors, 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 make contracts to purchase securities for a fixed
price at a future date beyond normal settlement time (when-issued
securities or forward commitments). Under normal market
conditions, the fund does not intend to commit more than 5% of its
total assets to these practices. The fund does not pay for the
securities or receive dividends or interest on them until the
contractual settlement date. The fund will designate cash or
liquid high-grade debt securities at least equal in value to its
commitments to purchase the securities. When-issued securities or
forward commitments are subject to market fluctuations and they may
affect the fund's total assets the same as owned securities.
The fund may invest a portion of its assets in cash and cash-
equivalent investments. The cash-equivalent investments the fund
may use are short-term U.S. and Canadian government securities and
negotiable certificates of deposit, non-negotiable fixed-time <PAGE>
PAGE 31
deposits, bankers' acceptances and letters of credit of banks or
savings and loan associations having capital, surplus and undivided
profits (as of the date of its most recently published annual
financial statements) in excess of $100 million (or the equivalent
in the instance of a foreign branch of a U.S. bank) at the date of
investment. Any cash-equivalent investments in foreign securities
will be subject to the limitations on foreign investments described
above. The fund also may purchase short-term corporate notes and
obligations rated in the top two classifications by Moody's
Investors Service, Inc. or Standard & Poor's Corporation or the
equivalent and may use repurchase agreements with broker-dealers
registered under the Securities Exchange Act of 1934 and with
commercial banks. A risk of a repurchase agreement is that if the
seller seeks the protection of the bankruptcy laws, the fund's
ability to liquidate the security involved could be impaired.
Appendix A describes the four highest corporate bond ratings and
provides additional information concerning investment policies.
For a discussion about foreign currency transactions, see Appendix
B. For a discussion on options and futures contracts, see Appendix
C.
PORTFOLIO TRANSACTIONS
Subject to policies set by the board of directors, IDS 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, IDS has
been directed to use its best efforts to obtain the best available
price and the most favorable execution except where otherwise
authorized by the board of directors. In selecting broker-dealers
to execute transactions, IDS may consider the price of the
security, including commission or mark-up, the size and difficulty
of the order, the reliability, integrity, financial soundness and
general operation and execution capabilities of the broker, the
broker's expertise in particular markets, and research services
provided by the broker.
On occasion, it may be desirable to compensate a broker for
research services or for brokerage services by paying a commission
that might not otherwise be charged or a commission in excess of
the amount another broker might charge. The board of directors has
adopted a policy authorizing IDS to do so to the extent authorized
by law, if IDS determines, in good faith, that such commission is
reasonable in relation to the value of the brokerage or research
services provided by a broker or dealer, viewed either in the light
of that transaction or IDS' overall responsibilities to the funds
in the IDS MUTUAL FUND GROUP.
Research provided by brokers supplements IDS' own research
activities. Such services include economic data on, and analysis
of, U.S. and foreign economies; information on specific industries;
information about specific companies, including earnings estimates;
<PAGE>
PAGE 32
purchase recommendations for stocks and bonds; portfolio strategy
services; political, economic, business and industry trend
assessments; historical statistical information; market data
services providing information on specific issues and prices; and
technical analysis of various aspects of the securities markets,
including technical charts. Research services may take the form of
written reports, computer software or personal contact by telephone
or at seminars or other meetings. IDS has obtained, and in the
future may obtain, computer hardware from brokers, including but
not limited to personal computers that will be used exclusively for
investment decision-making purposes, which include the research,
portfolio management and trading functions and other services to
the extent permitted under an interpretation by the SEC.
When paying a commission that might not otherwise be charged or a
commission in excess of the amount another broker might charge, IDS
must follow procedures authorized by the board of directors. To
date, three procedures have been authorized. One procedure permits
IDS to direct an order to buy or sell a security traded on a
national securities exchange to a specific broker for research
services it has provided. The second procedure permits IDS, in
order to obtain research, to direct an order on an agency basis to
buy or sell a security traded in the over-the-counter market to a
firm that does not make a market in that security. The commission
paid generally includes compensation for research services. The
third procedure permits IDS, in order to obtain research and
brokerage services, to cause the fund to pay a commission in excess
of the amount another broker might have charged. IDS has advised
the fund it is necessary to do business with a number of brokerage
firms on a continuing basis to obtain such services as the handling
of large orders, the willingness of a broker to risk its own money
by taking a position in a security, and the specialized handling of
a particular group of securities that only certain brokers may be
able to offer. As a result of this arrangement, some portfolio
transactions may not be effected at the lowest commission, but IDS
believes it may obtain better overall execution. IDS has assured
the fund that under all three procedures the amount of commission
paid will be reasonable and competitive in relation to the value of
the brokerage services performed or research provided.
All other transactions shall be placed on the basis of obtaining
the best available price and the most favorable execution. In so
doing, if in the professional opinion of the person responsible for
selecting the broker or dealer, several firms can execute the
transaction on the same basis, consideration will be given by such
person to those firms offering research services. Such services
may be used by IDS in providing advice to all the funds in the IDS
MUTUAL FUND GROUP and other accounts advised by IDS, even though it
is not possible to relate the benefits to any particular fund or
account.
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 IDS or any IDS subsidiary. When <PAGE>
PAGE 33
the fund buys or sells the same security as another fund or
account, IDS 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.
IDS has assured the fund it will continue to seek ways to reduce
brokerage costs.
On a periodic basis, IDS makes a comprehensive review of the
broker-dealers and the overall reasonableness of their commissions.
The review evaluates execution, operational efficiency and research
services.
The fund paid total brokerage commissions of $4,997,592 for the
fiscal year ended Nov. 30, 1993, $1,071,766 for fiscal year 1992,
and $1,510,418 for fiscal year 1991. Substantially all firms
through whom transactions were executed provide research services.
In fiscal year 1993, transactions amounting to $37,756,000, on
which $251,657 in commissions were imputed or paid, were
specifically directed to firms.
The fund's acquisition during the fiscal year ended Nov. 30, 1993,
of securities of its regular brokers or dealers or of the parent of
those brokers or dealers that derived more than 15% of gross
revenue from securities-related activities is presented below:
Value of Securities
Owned at End of
Name of Issuer Fiscal Year
Bank America $22,187,500
Morgan Stanley Group 28,798,126
The portfolio turnover rate was 61% in the fiscal year ended Nov.
30, 1993, and 46% in fiscal year 1992.
BROKERAGE COMMISSIONS PAID TO BROKERS AFFILIATED WITH IDS
Affiliates of American Express Company (American Express) (of which
IDS is a wholly owned subsidiary) may engage in brokerage and other
securities transactions on behalf of the fund according to
procedures adopted by the fund's board of directors and to the
extent consistent with applicable provisions of the federal
securities laws. IDS will use an American Express affiliate only
if (i) IDS 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 and Services
Agreement.
<PAGE>
PAGE 34
Information about brokerage commissions paid by the fund for the
last three fiscal years to brokers affiliated with IDS is contained
in the following table:
<TABLE><CAPTION>
For the Fiscal Year Ended Nov. 30,
1993 1992 1991
Aggregate Percent of Aggregate Aggregate
Dollar Aggregate Dollar Dollar Dollar
Amount of Percent of Amount of Amount of Amount of
Nature Commissions Aggregate Transactions Commissions Commissions
of Paid to Brokerage Involving Payment Paid to Paid to
Broker Affiliation Broker Commissions of Commissions Broker Broker
<S> <C> <C> <C> <C> <C> <C>
Lehman Brothers
Inc. (1) $222,684 4.46% 3.00% $ 78,270 $111,463
The Robinson
Humphrey
Company, Inc. (2) -0- -- -- 12,600 6,448
IDS Securities
Corporation (3) 158,591 3.17 9.15 248,408 199,155
</TABLE>
(1) Under common control with IDS as a subsidiary of American
Express Company (American Express). As of July 30, 1993, Shearson
Lehman Brothers Inc. became Lehman Brothers Inc.
(2) Under common control with IDS as an indirect subsidiary of
American Express until July 30, 1993.
(3) Wholly owned subsidiary of IDS.
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
these and any other methods used by the fund to compute performance
follows below.
Average annual total return
The fund may calculate average annual total return 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)
<PAGE>
PAGE 35
Aggregate total return
The fund may calculate aggregate total return 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)
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, 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 value of an individual share is determined by using the net
asset value before shareholder transactions for the day. On
Dec. 1, 1993, the first business day following the end of the
fiscal year, the computation looked like this:
<TABLE><CAPTION>
Net assets before Shares outstanding Net asset value
shareholder transactions at end of previous day of one share
<C> <S> <C> <S> <C>
$1,858,866,361 divided by 151,750,944 equals $12.25
In determining net assets before shareholder transactions, the
fund's portfolio securities are valued as follows as of the close
of business of the New York Stock Exchange:
'Securities, except bonds other than convertibles, traded on a
securities exchange for which a last-quoted sales price is readily
available are valued at the last-quoted sales price on the exchange
where such security is primarily traded.
'Securities traded on a securities exchange for which a last-quoted
sales price is not readily available are valued at the mean of the
closing bid and asked prices, looking first to the bid and asked
prices on the exchange where the security is primarily traded and,
if none exist, to the over-the-counter market.
<PAGE>
PAGE 36
'Securities included in the NASDAQ National Market System are
valued at the last-quoted sales price in this market.
'Securities included in the NASDAQ National Market System for which
a last-quoted sales price is not readily available, and other
securities traded over-the-counter but not included in the NASDAQ
National Market System are valued at the mean of the closing bid
and asked prices.
'Futures and options traded on major exchanges are valued at the
last-quoted sales price on their primary exchange.
'Foreign securities traded outside the United States are generally
valued as of the time their trading is complete, which is usually
different from the close of the New York Stock Exchange. Foreign
securities quoted in foreign currencies are translated into U.S.
dollars at the current rate of exchange. Occasionally, events
affecting the value of such securities may occur between such times
and the close of the New York Stock Exchange that will not be
reflected in the computation of the fund's net asset value. If
events materially affecting the value of such securities occur
during such period, these securities will be valued at their fair
value according to procedures decided upon in good faith by the
fund's board of directors.
'Short-term securities maturing more than 60 days from the
valuation date are valued at the readily available market price or
approximate market value based on current interest rates. Short-
term securities maturing in 60 days or less that originally had
maturities of more than 60 days at acquisition date are valued at
amortized cost using the market value on the 61st day before
maturity. Short-term securities maturing in 60 days or less at
acquisition date are valued at amortized cost. Amortized cost 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.
'Securities without a readily available market price, bonds other
than convertibles and other assets are valued at fair value as
determined in good faith by the board of directors. The board of
directors is responsible for selecting methods it believes provide
fair value. When possible, bonds are valued by a pricing service
independent from the fund. If a valuation of a bond is not
available from a pricing service, the bond will be valued by a
dealer knowledgeable about the bond if such a dealer is available.
The New York Stock Exchange, IDS and the fund will be closed on the
following holidays: New Year's Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day.
<PAGE>
PAGE 37
INVESTING IN THE FUND
Sales Charge
Shares of the fund are sold at the public offering price determined
at the close of business on the day an application is accepted.
The public offering price is the net asset value of one share plus
a sales charge. The public offering price for an investment of
less than $50,000, made Dec. 1, 1993, was determined by dividing
the net asset value of one share, $12.25, by 0.95 (1.00-0.05 for a
maximum 5% sales charge) for a public offering price of $12.89.
The sales charge is paid to IDS Financial Services Inc. by the
person buying the shares.
Calculation of the Sales Charge
Sales charges are determined as follows:
Within each increment,
sales charge as a
percentage of:
Public Net
Amount of Investment Offering Price Amount Invested
First $ 50,000 5.0% 5.26%
Next 50,000 4.5 4.71
Next 150,000 4.0 4.17
Next 250,000 3.0 3.09
Next 500,000 2.0 2.04
Next 2,000,000 1.0 1.01
More than 3,000,000 0.5 0.50
Sales charges on an investment greater than $50,000 are calculated
for each increment separately and then totaled. The resulting
total sales charge, expressed as a percentage of the public
offering price and of the net amount invested, will vary depending
on the proportion of the investment at different sales charge
levels.
For example, compare an investment of $60,000 with an investment of
$85,000. The $60,000 investment is composed of $50,000 that incurs
a sales charge of $2,500 (5.0% x $50,000) and $10,000 that incurs a
sales charge of $450 (4.5% x $10,000). The total sales charge of
$2,950 is 4.92% of the public offering price and 5.17% of the net
amount invested.
In the case of the $85,000 investment, the first $50,000 also
incurs a sales charge of $2,500 (5.0% x $50,000) and $35,000 incurs
a sales charge of $1,575 (4.5% x $35,000). The total sales charge
of $4,075 is 4.79% of the public offering price and 5.04% of the
net amount invested.
The following table shows the range of sales charges as a
percentage of the public offering price and of the net amount
invested on total investments at each applicable level.
<PAGE>
PAGE 38
</TABLE>
<TABLE><CAPTION>
On total investment, sales
charge as a percentage of
Public Net
Offering Price Amount Invested
Amount of Investment ranges from:
<S> <C> <C>
First $ 50,000 5.00% 5.26%
More than 50,000 to 100,000 5.00-4.75 5.26-4.99
More than 100,000 to 250,000 4.75-4.30 4.99-4.49
More than 250,000 to 500,000 4.30-3.65 4.49-3.79
More than 500,000 to 1,000,000 3.65-2.83 3.79-2.91
More than 1,000,000 to 3,000,000 2.83-1.61 2.91-1.63
More than 3,000,000 1.61-0.50 1.63-0.50
The initial sales charge is waived for certain qualified plans that
meet the requirements set forth in the prospectus. Participants in
those qualified plans who redeem shares in circumstances unrelated
to death, disability, retirement, attaining age 59 1/2, loans or
hardship withdrawals may be subject to a deferred sales charge.
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 1-199 200-499 500 or more
Less than $1 million 4% 2% 0%
$1 million but less
than $3 million 2 2 0
$3 million or more 0 0 0
___________________________________________________________________
Reducing the Sales Charge
Sales charges are based on the total amount of your investments in
the fund. The amount of all prior investments plus any new
purchase is referred to as your "total amount invested." For
example, suppose you have made an investment of $20,000 and later
decide to invest $40,000 more. Your total amount invested would be
$60,000. As a result, $10,000 of your $40,000 investment qualifies
for the lower 4.5% sales charge that applies to investments of more
than $50,000 to $100,000.
The total amount invested includes any shares held in the fund in
the name of a member of your immediate family (spouse and unmarried
children under 21). For instance, if your spouse already has
invested $20,000 and you want to invest $40,000, your total amount
invested will be $60,000 and therefore you will pay the lower
charge of 4.5% on $10,000 of the $40,000.<PAGE>
PAGE 39
Until a spouse remarries, the sales charge is waived for spouses
and unmarried children under 21 of deceased trustees, directors,
officers or employees of the fund or IDS or its subsidiaries and
deceased planners.
The total amount invested also includes any investment you or your
immediate family already have in the other publicly offered funds
in the IDS MUTUAL FUND GROUP where the investment is subject to a
sales charge. For example, suppose you already have an investment
of $25,000 in IDS Growth Fund and $5,000 in this fund. If you
invest $40,000 more in this fund, your total amount invested in the
funds will be $70,000 and therefore $20,000 of your $40,000
investment will incur a 4.5% sales charge.
Finally, Individual Retirement Account (IRA) purchases, or other
employee benefit plan purchases made through a payroll deduction
plan or through a plan sponsored by an employer, association of
employers, employee organization or other similar entity, may be
added together to reduce sales charges for shares purchased through
that plan.
Systematic Investment Programs
After you make your initial investment of $2,000 or more, 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. You can omit payments or discontinue the investment
program altogether. 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? When you send in your payment, your money is
invested at the public offering price. Your regular investment
amount will purchase more shares when the net asset value per share
decreases, and fewer shares when the net asset value per share
increases. 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.
The systematic investment program itself cannot ensure a profit,
nor can it protect against a loss in a declining market. If you
decide to discontinue the program and redeem your shares when their
net asset value is less than what you paid for them, you will incur
a loss.
For a discussion on dollar-cost averaging, see Appendix D.
<PAGE>
PAGE 40
Automatic Directed Dividends
Dividends, including capital gain distributions, paid by another
fund in the IDS MUTUAL FUND GROUP subject to a sales charge, may be
used to automatically purchase shares of this fund without paying a
sales charge. Dividends may be directed to existing accounts only.
Dividends declared by a fund are exchanged to this fund the
following day. Dividends can be exchanged into one fund 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 IDS Bank & Trust
acts as custodian;
'Between two IDS Bank & Trust 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).
Moreover, 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.
Each fund has a different investment goal described in its
prospectus along with other information, including fees and expense
ratios. Before exchanging dividends into another fund, you should
read its 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.
During an emergency, the board of directors can suspend the
computation of 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 New York Stock Exchange closes for reasons other than the
usual weekend and holiday closings or trading on the Exchange is
restricted, or
<PAGE>
PAGE 41
'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, declares a period of emergency to exist.
Should the fund stop selling shares, the directors 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
fairly these costs among all shareholders.
PAY-OUT PLANS
You can use any of several pay-out plans to redeem your investment
in regular installments at no extra cost. While the plans differ
on how the pay-out is figured, they all are based on the redemption
of your investment. Net investment income dividends and any
capital gain distributions will automatically be reinvested, unless
you elect to receive them in cash. If you are redeeming a tax-
qualified plan account for which IDS Bank & Trust acts as
custodian, you can elect to receive your dividends and other
distributions in cash when permitted by law. If you redeem an IRA
or a qualified retirement account, certain restrictions, federal
tax penalties and special federal income tax reporting requirements
may apply. You should consult your tax adviser about this complex
area of the tax law.
IDS normally will not accept applications for a systematic
investment in any fund in the IDS MUTUAL FUND GROUP subject to a
sales charge while a pay-out plan for any of those funds is in
effect. Occasional investments, however, may be accepted.
To start any of these plans, please submit an authorization form
supplied by IDS Shareholder Service. For a copy, write or call IDS
Shareholder Service, P.O. Box 534, Minneapolis, MN 55440-0534, 612-
671-3733. 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 IDS 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 will 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>
PAGE 42
Plan #1: Pay-out for a fixed period of time
If you choose this plan, a varying number of shares will be
redeemed at net asset value at regular intervals during the time
period you choose. This plan is designed to end in complete re-
demption 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
at net asset value 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 your 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.
EXCHANGES
If you buy shares in the fund and then exchange into another fund,
it is considered a sale and subsequent purchase of shares. Under
the tax laws, if this exchange is done within 91 days, any sales
charge waived on a subsequent purchase of shares applies to the new
shares acquired in the exchange. Therefore, you cannot create a
tax loss or reduce a tax gain attributable to the sales charge when
exchanging shares within 91 days.
Retirement Accounts
If you have a nonqualified investment in the fund and you wish to
move part or all of those shares to an IRA or qualified retirement
account in this fund, you can do so without paying a sales charge.
However, this type of exchange is considered a sale of shares and
may result in a gain or loss for tax purposes. In addition, this
type of exchange may result in an excess contribution under IRA or
qualified plan regulations if the amount exchanged plus the amount
of the initial sales charge applied to the amount exchanged exceeds
annual contribution limitations. For example: If you were to
exchange $2,000 in shares from a nonqualified account to an IRA
without considering the 5% ($100) initial sales charge applicable
to that $2,000, you may be deemed to have exceeded current IRA
annual contribution limitations. You should consult your tax
adviser for further details about this complex subject.<PAGE>
PAGE 43
TAXES
Net investment income dividends received should be treated as
dividend income for federal income tax purposes. Corporate
shareholders are generally entitled to a deduction equal to 70% of
that portion of the fund's dividend that is attributable to
dividends the fund received from domestic (U.S.) securities. For
the fiscal year ended Nov. 30, 1993, 49.95% of the fund's net
investment income dividends qualified for the corporate deduction.
Capital gain distributions received by individual and corporate
shareholders, if any, should be treated as long-term capital gains
regardless of how long they owned their shares. Short-term capital
gains earned by the fund are paid to shareholders as part of their
ordinary income dividend and are taxable.
Under federal tax law and an election made by the fund under
federal tax regulations, 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.
The fund may be subject to U.S. taxes resulting from holdings in a
passive foreign investment company (PFIC). A foreign corporation
is a PFIC when 75% or more of its gross income for the taxable year
is passive income or if 50% or more of the average value of its
assets consists of assets that produce or could produce passive
income. The fund has no current intention to invest in PFICs.
This is a brief summary that relates to federal income taxation
only. Shareholders should consult their tax adviser as to the
application of federal, state and local income tax laws to fund
distributions.
AGREEMENTS
Investment Management and Services Agreement
The fund has an Investment Management and Services Agreement with
IDS. For its services, IDS is paid a fee composed of an asset
charge in two parts. The first part, the group asset charge, is
based on the combined daily net assets of all funds in the IDS
MUTUAL FUND GROUP, except the money market funds, including any new
fund that may be organized in the future. The daily rate of the
group asset charge is based upon the following schedule:
<PAGE>
PAGE 44
Group Asset Charge
Group assets Annual rate at Effective
(billions) each asset level annual rate
First $5 0.460% 0.460%
Next $5 0.440 0.450
Next $5 0.420 0.440
Next $5 0.400 0.430
Next $5 0.390 0.422
Next $5 0.380 0.415
Next $5 0.360 0.407
Next $5 0.350 0.400
Next $5 0.340 0.393
Next $5 0.330 0.387
Over $50 0.320
The aggregate net assets of all non-money market funds in the IDS
MUTUAL FUND GROUP were $41,214,914,729 on Nov. 30, 1993, and the
daily rate applied to the fund's assets was equal to approximately
0.40% on an annual basis.
The second part of the asset charge is calculated at an annual rate
of 0.14% and is based on the unique characteristics of the fund,
including the fund's use of services provided by IDS in the areas
of investment research, portfolio management, investment services
and fund accounting. The total 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.
Before the fee based on the asset charge is paid, it is adjusted
for investment performance. The adjustment, determined monthly,
will be calculated using the percentage difference between the
change in the net asset value of one share of the fund's capital
stock and the change in the Lipper Growth and Income Fund Index
(Index). The performance of one fund share is measured by
computing the percentage difference between the opening and closing
net asset value of one share of the fund, as of the last business
day of the period selected for comparison, adjusted for dividend or
capital gain distributions which are treated as reinvested at the
end of the month during which the distribution was made. The
performance of the Index for the same period is established by
measuring the percentage difference between the beginning and
ending Index for the comparison period. The performance is
adjusted for dividend or capital gain distributions (on the
securities which comprise the Index), which are treated as
reinvested at the end of the month during which the distribution
was made. One percent will be subtracted from the calculation to
help assure that incentive adjustments are attributable to IDS'
management abilities rather than random fluctuations and the result
multiplied by 0.01%. That number will be multiplied times the
fund's average net assets for the comparison period and then
divided by the number of months in the comparison period to
determine the monthly adjustment.
<PAGE>
PAGE 45
Where the fund's performance exceeds that of the Index, the base
fee will be increased. Where the performance of the Index exceeds
the performance of the fund, the base fee will be decreased. The
maximum monthly increase or decrease will be 0.08% of the fund's
average net assets on an annual basis.
The 12 month comparison period rolls over with each succeeding
month, so that it always equals 12 months, ending with the month
for which the performance adjustment is being computed. The
adjustment decreased the fee by $87,287 for the fiscal year ended
Nov. 30, 1993.
The management fee is paid monthly. The total amount paid was
$8,806,035 for the fiscal year ended Nov. 30, 1993, $6,757,910 for
fiscal year 1992, and $5,891,511 for fiscal year 1991.
Under the current Agreement, the fund also pays taxes, brokerage
commissions and nonadvisory expenses, that include custodian fees;
audit and certain legal fees; fidelity bond premiums; registration
fees for shares; fund office expenses; consultants' fees;
compensation of directors, officers and employees; corporate filing
fees; Investment Company Institute dues; organizational expenses;
expenses incurred in connection with lending portfolio securities
of the fund; and expenses properly payable by the fund, approved by
the board of directors. The fund paid nonadvisory expenses of
$1,074,758 for the fiscal year ended Nov. 30, 1993, $561,904 for
fiscal year 1992, and $613,371 for fiscal year 1991.
Transfer Agency Agreement
The fund has a Transfer Agency Agreement with IDS. This agreement
governs IDS' 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, IDS will earn a fee from the
fund determined by multiplying the number of shareholder accounts
at the end of the day by a rate of $15 per year and dividing by the
number of days in the year. The fees paid to IDS may be changed
from time to time upon agreement of the parties without shareholder
approval. The fund paid fees of $2,652,474 for the fiscal year
ended Nov. 30, 1993.
Distribution Agreement
Under a Distribution Agreement, sales charges deducted for
distributing fund shares are paid to IDS Financial Services Inc.
daily. These charges amounted to $10,164,983 for the fiscal year
ended Nov. 30, 1993. After paying commissions to personal
financial planners, and other expenses, the amount retained was
$3,601,639. The amounts were $7,705,173 and $2,727,338 for fiscal
year 1992, and $4,567,739 and $1,377,592 for fiscal year 1991.
<PAGE>
PAGE 46
Additional information about commissions and compensation for the
fiscal year ended Nov. 30, 1993, is contained in the following
table:
(1) (2) (3) (4) (5)
Net Compensation
Name of Underwriting on Redemption
Principal Discounts and and Brokerage Other
Underwriter Commissions Repurchases Commissions Compensation
IDS None None $158,591* $1,066,250**
IDS Financial
Services Inc. $10,164,983 None None None
*For further information see "Brokerage Commissions Paid to Brokers
Affiliated with IDS."
**Distribution fees paid pursuant to the Plan and Supplemental
Agreement of Distribution.
Plan and Supplemental Agreement of Distribution
To help IDS defray the cost of distribution and servicing, not
covered by the sales charges received under the Distribution
Agreement, the fund and IDS entered into a Plan and Supplemental
Agreement of Distribution (Plan). These costs cover 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, IDS is paid a fee determined by multiplying
the number of shareholder accounts at the end of each day by a rate
of $6 per year and dividing by the number of days in the year.
The Plan must be approved annually by the directors, including a
majority of the disinterested directors, if it is to continue for
more than a year. At least quarterly, the directors 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 directors 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 or by IDS. The Plan (or any agreement related to it) shall
terminate in the event of its assignment, as that term is defined
in the Investment Company Act of 1940, as amended. 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 directors, including a
majority of the directors 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 such disinterested directors is the responsibility of
such disinterested directors. No interested person of the fund,
and no director who is not an interested person, has any direct or<PAGE>
PAGE 47
indirect financial interest in the operation of the Plan or any
related agreement.
Total fees and nonadvisory expenses cannot exceed the most
restrictive applicable state limitation. Currently, the most
restrictive applicable state expense limitation, subject to
exclusion of certain expenses, is 2.5% of the first $30 million of
the fund's average daily net assets, 2% of the next $70 million and
1.5% of average daily net assets over $100 million, on an annual
basis. At the end of each month, if the fees and expenses of the
fund exceed this limitation for the fund's fiscal year in progress,
IDS will assume all expenses in excess of the limitation. IDS then
may bill the fund for such expenses in subsequent months up to the
end of that fiscal year, but not after that date. No interest
charges are assessed by IDS for expenses it assumes.
DIRECTORS AND OFFICERS
The following is a list of the fund's directors who, except for Mr.
Dudley, also are directors of all other funds in the IDS MUTUAL
FUND GROUP. Mr. Dudley is a director of all publicly offered
funds. All shares have cumulative voting rights when voting on the
election of directors.
William H. Dudley**
2900 IDS Tower
Minneapolis, MN
Executive vice president and director of IDS.
Robert F. Froehlke+
901 S. Marquette Ave.
Minneapolis, MN
Former president of all funds in the IDS MUTUAL FUND GROUP.
Director, the ICI Mutual Insurance Co., Institute for Defense
Analyses, Marshall Erdman and Associates, Inc. (architectual
engineering) and Public Oversight Board of the American Institute
of Certified Public Accountants.
David R. Hubers*
2900 IDS Tower
Minneapolis, MN
President, chief executive officer and director of IDS.
Previously, senior vice president, finance and chief financial
officer of IDS.
Anne P. Jones***
Sutherland, Asbill & Brennan
1275 Pennsylvania Ave., N.W.
Washington, D.C.
Partner, law firm of Sutherland, Asbill & Brennan. Director,
Motorola, Inc. and C-Cor Electronics, Inc.
<PAGE>
PAGE 48
Donald M. Kendall
PepsiCo, Inc.
Purchase, NY
Former chairman and chief executive officer, PepsiCo, Inc.
Director, Atlantic Richfield Company.
Melvin R. Laird
Reader's Digest Association, Inc.
1730 Rhode Island Ave., N.W.
Washington, D.C.
Senior counsellor for national and international affairs, The
Reader's Digest Association, Inc. Chairman of the board, COMSAT
Corporation, former nine-term congressman, secretary of defense and
presidential counsellor. Director, Martin Marietta Corp.,
Metropolitan Life Insurance Co., The Reader's Digest Association,
Inc., Science Applications International Corp., Wallace Reader's
Digest funds and Public Oversight Board (SEC Practice Section,
American Institute of Certified Public Accountants).
Lewis W. Lehr'
3050 Minnesota World Trade Center
30 E. Seventh St.
St. Paul, MN
Former chairman of the board and chief executive officer, Minnesota
Mining and Manufacturing Company (3M). Director, Jack Eckerd
Corporation (drugstores). Advisory Director, Peregrine Inc.
(microelectronics).
William R. Pearce+*
901 S. Marquette Ave.
Minneapolis, MN
President of all funds in the IDS MUTUAL FUND GROUP since June
1993. Former vice chairman of the board, Cargill, Incorporated
(commodity merchants and processors).
Aulana L. Peters'***
Gibson, Dunn & Crutcher
333 S. Grand Ave.
Los Angeles, CA
Partner, law firm of Gibson, Dunn & Crutcher from January 1980 to
May 1984 and since August 1988. Commissioner, Securities and
Exchange Commission from June 1984 to July 1988. Director,
American Institute of CPA's (accounting), Minnesota Mining and
Manufacturing Company (3M), Mobil Corporation (energy), New York
Stock Exchange and Northrop Corporation (defense).
<PAGE>
PAGE 49
Edson W. Spencer+'
840 TCF Tower
Minneapolis, MN
President, Spencer Associates Inc. (consulting). Chairman of the
board, Mayo Foundation (healthcare). Former chairman of the board
and chief executive officer, Honeywell, Inc. Director, Boise
Cascade Corporation (forest products) and CBS Inc. Member of
International Advisory Councils, Robert Bosch (Germany) and NEC
(Japan).
John R. Thomas+**
2900 IDS Tower
Minneapolis, MN
Senior vice president and director of IDS.
Wheelock Whitney+
1900 Foshay Tower
821 Marquette Ave.
Minneapolis, MN
Chairman, Whitney Management Company (manages family assets).
+ 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, director,
employee and/or shareholder of IDS or American Express.
***Interested person by reason of being a partner in a law firm
that has represented IDS or its subsidiaries.
The board also has appointed officers who are responsible for day-
to-day business decisions based on policies it has established.
Besides Mr. Pearce, who is president, the fund's other officer is:
Leslie L. Ogg
901 S. Marquette Ave.
Minneapolis, MN
Vice president of all funds in the IDS MUTUAL FUND GROUP and
general counsel and treasurer of the publicly offered funds.
On Nov. 30, 1993, the fund's directors and officers as a group
owned less than 1% of the outstanding shares. During the fiscal
year ended Nov. 30, 1993, no director or officer earned more than
$60,000 from this fund. All directors and officers as a group
earned $71,038, including $21,174 of retirement plan expense, from
this fund.
<PAGE>
PAGE 50
CUSTODIAN
The fund's securities and cash are held by IDS Bank & Trust, 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.
The custodian has entered into a sub-custodian arrangement with the
Boston Safe Deposit & Trust Company (Boston Safe), 31 St. James
Avenue, Boston, MA 02116-4114. As part of this arrangement,
portfolio securities purchased outside the United States are
maintained in the custody of various foreign branches of Boston
Safe or in such other financial institutions as may be permitted by
law and by the fund's sub-custodian agreement.
INDEPENDENT AUDITORS
The fund's financial statements contained in its Annual Report to
shareholders, for the fiscal year ended Nov. 30, 1993, were audited
by independent auditors, KPMG Peat Marwick, 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 1993 Annual Report to
IDS Managed Retirement Fund, Inc. shareholders, pursuant to Section
30(d) of the Investment Company Act of 1940, as amended, are hereby
incorporated in this SAI by reference. No other portion of the
Annual Report, however, is incorporated by reference.
PROSPECTUS
The prospectus dated Jan. 28, 1994, is hereby incorporated in this
Statement of Additional Information by reference.
<PAGE>
PAGE 51
APPENDIX A
DESCRIPTION OF THE FOUR HIGHEST CORPORATE BOND RATINGS AND
ADDITIONAL INFORMATION ON INVESTMENT POLICIES
The ratings concern the quality of the issuing corporation. They
are not an opinion of the market value of the security. Such
ratings are opinions on whether the principal and interest will be
repaid when due. A security's rating may change which could affect
its price. The four highest ratings by Moody's Investors Service,
Inc. are Aaa, Aa, A and Baa. The four highest by Standard & Poor's
Corporation are AAA, AA, A and BBB.
Bonds rated Aaa and AAA are judged to be of the best quality.
Interest and principal are secure. Prices are responsive only to
interest rate fluctuations.
Bonds rated Aa and AA are also judged to be high grade although
margins of protection for interest and principal may not be quite
as good as the Aaa or AAA group. Long-term risk may appear greater
than the Aaa or AAA group. Prices are primarily responsive to
interest rate fluctuations.
Bonds rated A are considered upper-medium grade. Protection for
interest and principal are deemed adequate but susceptible to
future impairment. The market prices of such obligations move
primarily with interest rate fluctuations but also with changing
economic or trade conditions.
Bonds rated Baa or BBB are considered medium-grade obligations.
Protection for interest and principal is adequate over the short-
term; however, these obligations have certain speculative
characteristics. They are susceptible to changing economic
conditions and require constant review. Such bonds are more
responsive to business and trade conditions than to interest rate
fluctuations.
Stripped Mortgage-Backed Securities
The fund may invest in stripped mortgage-backed securities.
Generally, there are two classes of stripped mortgage-backed
securities: Interest Only (IO) and Principal Only (PO). IOs
entitle the holder to receive distributions consisting of all or a
portion of the interest on the underlying pool of mortgage loans or
mortgage-backed securities. POs entitle the holder to receive
distributions consisting of all or a portion of the principal of
the underlying pool of mortgage loans or mortgage-backed
securities. The cash flows and yields on IOs and POs are extremely
sensitive to the rate of principal payments (including prepayments)
on the underlying mortgage loans or mortgage-backed securities. A
rapid rate of principal payments may adversely affect the yield to
maturity of IOs. A slow rate of principal payments may adversely
<PAGE>
PAGE 52
affect the yield to maturity of POs. If prepayments of principal
are greater than anticipated, an investor may incur substantial
losses. If prepayments of principal are slower than anticipated,
the yield on a PO will be affected more severely than would be the
case with a traditional mortgage-backed security.
<PAGE>
PAGE 53
APPENDIX B
FOREIGN CURRENCY TRANSACTIONS
Since investments in foreign countries usually involve currencies
of foreign countries, and since the fund may hold cash and cash-
equivalent investments in foreign currencies, the value of the
fund's assets as measured in U.S. dollars may be affected favorably
or unfavorably by changes in currency exchange rates and exchange
control regulations. Also, the fund may incur costs in connection
with conversions between various currencies.
Spot Rates and Forward Contracts. The fund conducts its foreign
currency exchange transactions either at the spot (cash) rate
prevailing in the foreign currency exchange market or by entering
into forward currency exchange contracts (forward contracts) as a
hedge against fluctuations in future foreign exchange rates. A
forward contract involves an obligation to buy or sell a specific
currency at a future date, which may be any fixed number of days
from the contract date, at a price set at the time of the contract.
These contracts are traded in the interbank market conducted
directly between currency traders (usually large commercial banks)
and their customers. A forward contract generally has no deposit
requirements. No commissions are charged at any stage for trades.
The fund may enter into forward contracts to settle a security
transaction or handle dividend and interest collection. When the
fund enters into a contract for the purchase or sale of a security
denominated in a foreign currency or has been notified of a
dividend or interest payment, it may desire to lock in the price of
the security or the amount of the payment in dollars. By entering
into a forward contract, the fund will be able to protect itself
against a possible loss resulting from an adverse change in the
relationship between different currencies from the date the
security is purchased or sold to the date on which payment is made
or received or when the dividend or interest is actually received.
The fund also may enter into forward contracts when management of
the fund believes the currency of a particular foreign country may
suffer a substantial decline against another currency. It may
enter into a forward contract to sell, for a fixed amount of
dollars, the amount of foreign currency approximating the value of
some or all of the fund's portfolio securities denominated in such
foreign currency. The precise matching of forward contract amounts
and the value of securities involved generally will not be possible
since the future value of such securities in foreign currencies
more than likely will change between the date the forward contract
is entered into and the date it matures. The projection of short-
term currency market movements is extremely difficult and
successful execution of a short-term hedging strategy is highly
uncertain. The fund will not enter into such forward contracts or
maintain a net exposure to such contracts when consummating the <PAGE>
PAGE 54
contracts would obligate the fund to deliver an amount of foreign
currency in excess of the value of the fund's portfolio securities
or other assets denominated in that currency.
The fund will designate cash or securities in an amount equal to
the value of the fund's total assets committed to consummating
forward contracts entered into under the second circumstance set
forth above. If the value of the securities declines, additional
cash or securities will be designated on a daily basis so that the
value of the cash or securities will equal the amount of the fund's
commitments on such contracts.
At maturity of a forward contract, the fund may either sell the
portfolio security and make delivery of the foreign currency or
retain the security and terminate its contractual obligation to
deliver the foreign currency by purchasing an offsetting contract
with the same currency trader obligating it to buy, on the same
maturity date, the same amount of foreign currency.
If the fund retains the portfolio security and engages in an
offsetting transaction, the fund will incur a gain or a loss (as
described below) to the extent there has been movement in forward
contract prices. If the fund engages in an offsetting transaction,
it may subsequently enter into a new forward contract to sell the
foreign currency. Should forward prices decline between the date
the fund enters into a forward contract for selling foreign
currency and the date it enters into an offsetting contract for
purchasing the foreign currency, the fund will realize a gain to
the extent that the price of the currency it has agreed to sell
exceeds the price of the currency it has agreed to buy. Should
forward prices increase, the fund will suffer a loss to the extent
the price of the currency it has agreed to buy exceeds the price of
the currency it has agreed to sell.
It is impossible to forecast what the market value of portfolio
securities will be at the expiration of a contract. Accordingly,
it may be necessary for the fund to buy additional foreign currency
on the spot market (and bear the expense of such purchase) if the
market value of the security is less than the amount of foreign
currency the fund is obligated to deliver and a decision is made to
sell the security and make delivery of the foreign currency.
Conversely, it may be necessary to sell on the spot market some of
the foreign currency received on the sale of the portfolio security
if its market value exceeds the amount of foreign currency the fund
is obligated to deliver.
The fund's dealing in forward contracts will be limited to the
transactions described above. This method of protecting the value
of the fund's portfolio securities against a decline in the value
of a currency does not eliminate fluctuations in the underlying
prices of the securities. It simply establishes a rate of exchange
that can be achieved at some point in time. Although such forward
contracts tend to minimize the risk of loss due to a decline in
value of hedged currency, they tend to limit any potential gain
that might result should the value of such currency increase.
<PAGE>
PAGE 55
Although the fund values its assets each business day in terms of
U.S. dollars, it does not intend to convert its foreign currencies
into U.S. dollars on a daily basis. It will do so from time to
time, and shareholders should be aware of currency conversion
costs. Although foreign exchange dealers do not charge a fee for
conversion, they do realize a profit based on the difference
(spread) between the prices at which they are buying and selling
various currencies. Thus, a dealer may offer to sell a foreign
currency to the fund at one rate, while offering a lesser rate of
exchange should the fund desire to resell that currency to the
dealer.
Options on Foreign Currencies. The fund may buy put and write
covered call options on foreign currencies for hedging purposes.
For example, a decline in the dollar value of a foreign currency in
which portfolio securities are denominated will reduce the dollar
value of such securities, even if their value in the foreign
currency remains constant. In order to protect against such
diminutions in the value of portfolio securities, the fund may buy
put options on the foreign currency. If the value of the currency
does decline, the fund will have the right to sell such currency
for a fixed amount in dollars and will thereby offset, in whole or
in part, the adverse effect on its portfolio which otherwise would
have resulted.
As in the case of other types of options, however, the benefit to
the fund derived from purchases of foreign currency options will be
reduced by the amount of the premium and related transaction costs.
In addition, where currency exchange rates do not move in the
direction or to the extent anticipated, the fund could sustain
losses on transactions in foreign currency options which would
require it to forego a portion or all of the benefits of
advantageous changes in such rates.
The fund may write options on foreign currencies for the same types
of hedging purposes. For example, when the fund anticipates a
decline in the dollar value of foreign-denominated securities due
to adverse fluctuations in exchange rates, it could, instead of
purchasing a put option, write a call option on the relevant
currency. If the expected decline occurs, the option will most
likely not be exercised and the diminution in value of portfolio
securities will be fully or partially offset by the amount of the
premium received.
As in the case of other types of options, however, the writing of a
foreign currency option will constitute only a partial hedge up to
the amount of the premium, and only if rates move in the expected
direction. If this does not occur, the option may be exercised and
the fund would be required to buy or sell the underlying currency
at a loss which may not be offset by the amount of the premium.
Through the writing of options on foreign currencies, the fund also
<PAGE>
PAGE 56
may be required to forego all or a portion of the benefits which
might otherwise have been obtained from favorable movements on
exchange rates.
All options written on foreign currencies will be covered. An
option written on foreign currencies is covered if the fund holds
currency sufficient to cover the option or has an absolute and
immediate right to acquire that currency without additional cash
consideration upon conversion of assets denominated in that
currency or exchange of other currency held in its portfolio. An
option writer could lose amounts substantially in excess of its
initial investments, due to the margin and collateral requirements
associated with such positions.
Options on foreign currencies are traded through financial
institutions acting as market-makers, although foreign currency
options also are traded on certain national securities exchanges,
such as the Philadelphia Stock Exchange and the Chicago Board
Options Exchange, subject to SEC regulation. In an over-the-
counter trading environment, many of the protections afforded to
exchange participants will not be available. For example, there
are no daily price fluctuation limits, and adverse market movements
could therefore continue to an unlimited extent over a period of
time. Although the purchaser of an option cannot lose more than
the amount of the premium plus related transaction costs, this
entire amount could be lost.
Foreign currency option positions entered into on a national
securities exchange are cleared and guaranteed by the OCC, thereby
reducing the risk of counterparty default. Further, a liquid
secondary market in options traded on a national securities
exchange may be more readily available than in the over-the-counter
market, potentially permitting the fund to liquidate open positions
at a profit prior to exercise or expiration, or to limit losses in
the event of adverse market movements.
The purchase and sale of exchange-traded foreign currency options,
however, is subject to the risks of availability of a liquid
secondary market described above, as well as the risks regarding
adverse market movements, margining of options written, the nature
of the foreign currency market, possible intervention by
governmental authorities and the effects of other political and
economic events. In addition, exchange-traded options on foreign
currencies involve certain risks not presented by the over-the-
counter market. For example, exercise and settlement of such
options must be made exclusively through the OCC, which has
established banking relationships in certain foreign countries for
the purpose. As a result, the OCC may, if it determines that
foreign governmental restrictions or taxes would prevent the
orderly settlement of foreign currency option exercises, or would
result in undue burdens on OCC or its clearing member, impose
special procedures on exercise and settlement, such as technical
changes in the mechanics of delivery of currency, the fixing of
dollar settlement prices or prohibitions on exercise.
<PAGE>
PAGE 57
Foreign Currency Futures and Related Options. The fund may enter
into currency futures contracts to sell currencies. It also may
buy put and write covered call options on currency futures.
Currency futures contracts are similar to currency forward
contracts, except that they are traded on exchanges (and have
margin requirements) and are standardized as to contract size and
delivery date. Most currency futures call for payment of delivery
in U.S. dollars. The fund may use currency futures for the same
purposes as currency forward contracts, subject to CFTC
limitations, including the limitation on the percentage of assets
that may be used, described in the prospectus. All futures
contracts are aggregated for purposes of the percentage
limitations.
Currency futures and options on futures values can be expected to
correlate with exchange rates, but will not reflect other factors
that may affect the values of the fund's investments. A currency
hedge, for example, should protect a Yen-denominated bond against a
decline in the Yen, but will not protect the fund against price
decline if the issuer's creditworthiness deteriorates. Because the
value of the fund's investments denominated in foreign currency
will change in response to many factors other than exchange rates,
it may not be possible to match the amount of a forward contract to
the value of the fund's investments denominated in that currency
over time.
The fund will not use leverage in its options and futures
strategies. The fund will hold securities or other options or
futures positions whose values are expected to offset its
obligations. The fund will not enter into an option or futures
position that exposes the fund to an obligation to another party
unless it owns either (i) an offsetting position in securities or
(ii) cash, receivables and short-term debt securities with a value
sufficient to cover its potential obligations.
<PAGE>
PAGE 58
APPENDIX C
OPTIONS AND FUTURES CONTRACTS
The fund may buy put and call options, write covered call options
and write cash-secured put options on portfolio securities. The
fund may enter into interest rate futures contracts and stock index
futures contracts (futures contracts). The fund may buy put and
call options on futures contracts and write covered put and call
options on futures contracts. The fund may buy put and call
options on stock indexes. Bond options in the over-the-counter
market will be purchased only when the investment manager believes
a liquid secondary market exists for the options and only from
dealers and institutions the investment manager believes present a
minimal credit risk. Some options are exercisable only on a
specific date. In that case, or if a liquid secondary market does
not exist, the fund could be required to buy or sell securities at
disadvantageous prices, thereby incurring losses.
OPTIONS. An option is a contract. A person who buys a call option
for a security has the right to buy the security at a set price for
the length of the contract. A person who sells a call option is
called a writer. The writer of a call option agrees to sell the
security at the set price when the buyer wants to exercise the
option, no matter what the market price of the security is at that
time. A person who buys a put option has the right to sell a
security at a set price for the length of the contract. A person
who writes a put option agrees to buy the security at the set price
if the purchaser wants to exercise the option, no matter what the
market price of the security is at that time. An option is covered
if the writer owns the security (in the case of a call) or sets
aside the cash or securities of equivalent value (in the case of a
put) that would be required upon exercise.
The price paid by the buyer for an option is called a premium. In
addition, the buyer generally pays a broker a commission. The
writer receives a premium, less another commission, at the time the
option is written. The cash received is retained by the writer
whether or not the option is exercised. A writer of a call option
may have to sell the security for a below-market price if the
market price rises above the exercise price. A writer of a put
option may have to pay an above-market price for the security if
its market price decreases below the exercise price. The risk of
the writer is potentially unlimited, unless the option is covered.
Options can be used to produce incremental earnings, protect gains
and facilitate buying and selling securities for investment
purposes. The use of options and futures contracts may benefit the
fund and its shareholders by improving the fund's liquidity and by
helping to stabilize the value of its net assets.
<PAGE>
PAGE 59
Buying options. Put and call options may be used as a trading
technique to facilitate buying and selling securities for
investment reasons. They also may be for investment. Options are
used as a trading technique to take advantage of any disparity
between the price of the underlying security in the securities
market and its price on the options market. It is anticipated the
trading technique will be utilized only to effect a transaction
when the price of the security plus the option price will be as
good or better than the price at which the security could be bought
or sold directly. When the option is purchased, the fund pays a
premium and a commission. It then pays a second commission on the
purchase or sale of the underlying security when the option is
exercised. For record keeping and tax purposes, the price obtained
on the purchase of the underlying security will be the combination
of the exercise price, the premium and both commissions. When
using options as a trading technique, commissions on the option
will be set as if only the underlying securities were traded.
Put and call options also may be held by the fund for investment
purposes. Options permit the fund to experience the change in the
value of a security with a relatively small initial cash
investment.
The risk the fund assumes when it buys an option is the loss of the
premium. To be beneficial to the fund, the price of the underlying
security must change within the time set by the option contract.
Furthermore, the change must be sufficient to cover the premium
paid, the commissions paid both in the acquisition of the option
and in a closing transaction or in the exercise of the option and
subsequent sale (in the case of a call) or purchase (in the case of
a put) of the underlying security. Even then, the price change in
the underlying security does not ensure a profit since prices in
the option market may not reflect such a change.
Writing covered options. The fund will write covered options when
it feels it is appropriate and will follow these guidelines:
'Underlying securities will continue to be bought or sold solely on
the basis of investment considerations consistent with the fund's
goal.
'All options written by the fund will be covered. For covered call
options, if a decision is made to sell the security, or for put
options if a decision is made to buy the security, the fund will
attempt to terminate the option contract through a closing purchase
transaction.
'The fund will write options only as permitted under federal or
state laws or regulations, such as those that limit the amount of
total assets subject to the options. While no limit has been set
by the fund, it will conform to the requirements of those states.
For example, California limits the writing of options to 50% of the
assets of a fund. Some regulations also affect the Custodian. <PAGE>
PAGE 60
When a covered option is written, the Custodian segregates the
underlying securities, and issues a receipt. There are certain
rules regarding banks issuing such receipts that may restrict the
amount of covered call options written. Furthermore, the fund is
limited to pledging not more than 15% of the cost of its total
assets.
Net premiums on call options closed or premiums on expired call
options are treated as short-term capital gains. Since the fund is
taxed as a regulated investment company under the Internal Revenue
Code, any gains on options and other securities held less than
three months must be limited to less than 30% of its annual gross
income.
If a covered call option is exercised, the security is sold by the
fund. The premium received upon writing the option is added to the
proceeds received from the sale of the security. The fund will
recognize a capital gain or loss based upon the difference between
the proceeds and the security's basis. Premiums received from
writing outstanding options are included as a deferred credit in
the Statement of Assets and Liabilities and adjusted daily to the
current market value.
Options on many securities are listed on options exchanges. If the
fund writes listed options, it will follow the rules of the options
exchange. Options are valued at the close of the New York Stock
Exchange. An option listed on a national exchange, CBOE or NASDAQ
will be valued at the last-quoted sales price or, if such a price
is not readily available, at the mean of the last bid and ask
prices.
Options on certain securities are not actively traded on any
exchange, but may be entered into directly with a dealer. When the
fund writes such an option, the Custodian will segregate assets as
appropriate to cover the option. These options may be more
difficult to close. If the fund is unable to effect a closing
purchase transaction, it will not be able to sell the underlying
security until the call written by the fund expires or is
exercised.
FUTURES CONTRACTS. A futures contract is an agreement between two
parties to buy and sell a security for a set price on a future
date. Futures contracts trade in a manner similar to the way a
stock trades on a stock exchange and the commodity exchanges,
through their clearing corporations, guarantee performance of the
contracts. Futures contracts are commodity contracts listed on
commodity exchanges. They include contracts based on U.S. Treasury
bonds and on Standard and Poor's 500 Index (S&P 500 Index).
Unlike other futures contracts, a stock index futures contract
specifies that no delivery of the actual stocks making up the index
will take place. Instead, settlement in cash must occur upon the
termination of the contract. For example, excluding any <PAGE>
PAGE 61
transaction costs, if the fund enters into one futures contract to
buy the S&P 500 Index at a specified future date at a contract
value of 150 and the S&P 500 Index is at 154 on that future date,
the fund will gain $500 x (154-150) or $2,000. If the fund enters
into one futures contract to sell the S&P 500 Index at a specified
future date at a contract value of 150 and the S&P 500 Index is at
152 on that future date, the fund will lose $500 x (152-150) or
$1,000.
Generally, a futures contract is terminated by entering into an
offsetting transaction. An offsetting transaction is effected by
the fund taking an opposite position. At the time a futures
contract is made, a good faith deposit called initial margin is set
up within a segregated account at the fund's custodian bank. Daily
thereafter, the futures contract is valued and the payment of
variation margin is required so that each day the fund would pay
out cash in an amount equal to any decline in the contract's value
or receive cash equal to any increase. At the time a futures
contract is closed out, a nominal commission is paid, which is
generally lower than the commission on a comparable transaction in
the cash markets.
The purpose of a futures contract is to allow the fund to gain
rapid exposure to or protect itself from changes in the market
without actually buying or selling securities. For example, if the
fund owned long-term bonds and interest rates were expected to
increase, it might enter into futures contracts to sell securities
which would have much the same effect as selling some of the long-
term bonds it owned. If interest rates did increase, the value of
the debt securities in the portfolio would decline, but the value
of the fund's futures contracts would increase at approximately the
same rate, thereby keeping the net asset value of the fund from
declining as much as it otherwise would have. If, on the other
hand, the fund held cash reserves and interest rates were expected
to decline, the fund might enter into interest rate futures
contracts for the purchase of securities. If short-term rates were
higher than long-term rates, the ability to continue holding these
cash reserves would have a very beneficial impact on the fund's
earnings. Even if short-term rates were not higher, the fund would
still benefit from the income earned by holding these short-term
investments. At the same time, by entering into futures contracts
for the purchase of securities, the fund could take advantage of
the anticipated rise in the value of long-term bonds without
actually buying them until the market had stabilized. At that
time, the futures contracts could be liquidated and the fund's cash
reserves could then be used to buy long-term bonds on the cash
market. The fund could accomplish similar results by selling bonds
with long maturities and investing in bonds with short maturities
when interest rates are expected to increase or by buying bonds
with long maturities and selling bonds with short maturities when
interest rates are expected to decline. But by using futures
contracts as an investment tool, given the greater liquidity in the
futures market than in the cash market, it might be possible to
accomplish the same result more easily and more quickly.
<PAGE>
PAGE 62
Risks of Transactions in Futures Contracts. The fund may elect to
close some or all of its contracts prior to expiration. Although
the fund intends to enter into futures contracts only on exchanges
or boards of trade where there appears to be an active secondary
market, there is no assurance that a liquid secondary market will
exist for any particular contract at any particular time. In such
event, it may not be possible to close a futures contract position,
and in the event of adverse price movements, the fund would have to
make daily cash payments of variation margin. Such price
movements, however, will be offset all or in part by the price
movements of the securities owned by the fund. Of course, there is
no guarantee the price of the securities will correlate with the
price movements in the futures contract and thus provide an offset
to losses on a futures contract.
Another risk in employing futures contracts to protect against the
price volatility of portfolio securities is that the prices of
securities subject to futures contracts may not correlate perfectly
with the behavior of the cash prices of the fund's portfolio
securities. The correlation may be distorted because the futures
market is dominated by short-term traders seeking to profit from
the difference between a contract or security price and their cost
of borrowed funds. Such distortions are generally minor and would
diminish as the contract approached maturity.
In addition, the fund's investment manager could be incorrect in
its expectations as to the direction or extent of various interest
rate or market movements or the time span within which the
movements take place. For example, if the fund sold futures
contracts for the sale of securities in anticipation of an increase
in interest rates, and interest rates declined instead, the fund
would lose money on the sale.
OPTIONS ON FUTURES CONTRACTS. Options give the holder a right to
buy or sell futures contracts in the future. Unlike a futures
contract, which requires the parties to the contract to buy and
sell a security on a set date, an option on a futures contract
merely entitles its holder to decide on or before a future date
(within nine months of the date of issue) whether to enter into
such a contract. If the holder decides not to enter into the
contract, all that is lost is the amount (premium) paid for the
option. Further, because the value of the option is fixed at the
point of sale, there are not daily payments of cash to reflect the
change in the value of the underlying contract. However, since an
option gives the buyer the right to enter into a contract at a set
price for a fixed period of time, its value does change daily and
that change is reflected in the net asset value of the fund.
The risk the fund assumes when it buys an option is the loss of the
premium paid for the option. The risk involved in writing options
on futures contracts the fund owns, or on securities held in its <PAGE>
PAGE 63
portfolio, is that there could be an increase in the market value
of such contracts or securities. If that occurred, the option
would be exercised and the asset sold at a lower price than the
cash market price. To some extent, the risk of not realizing a
gain could be reduced by entering into a closing transaction. The
fund could enter into a closing transaction by purchasing an option
with the same terms as the one it had previously sold. The cost to
close the option and terminate the fund's obligation, however,
might be more or less than the premium received when it originally
wrote the option. Further, the fund might not be able to close the
option because of insufficient activity in the options market.
Purchasing options also limits the use of monies that might
otherwise be available for long-term investments.
OPTIONS ON STOCK INDEXES. Options on stock indexes are securities
traded on national securities exchanges. An option on a stock
index is similar to an option on a futures contract except all
settlements are in cash. A fund exercising a put, for example,
would receive the difference between the exercise price and the
current index level. Such options would be used in the same manner
as options on futures contracts.
TAX TREATMENT. As permitted under federal income tax laws, the
fund intends to identify futures contracts as mixed straddles and
not mark them to market, that is, not treat them as having been
sold at the end of the year at market value. Such an election may
result in the fund being required to defer recognizing losses
incurred by entering into futures contracts and losses on
underlying securities identified as being hedged against.
Federal income-tax treatment of gains or losses from transactions
in options on futures contracts and indexes is presently unclear,
although the fund's tax advisers currently believe marking to
market is not required. Depending on developments and although no
assurance is given, the fund may seek Internal Revenue Service
(IRS) rulings clarifying questions concerning such treatment.
Certain provisions of the Internal Revenue Code may also limit the
fund's ability to engage in futures contracts and related options
transactions. For example, at the close of each quarter of the
fund's taxable year, at least 50% of the value of its assets must
consist of cash, government securities and other securities,
subject to certain diversification requirements. Less than 30% of
its gross income must be derived from sales of securities held less
than three months.
The IRS has ruled publicly that an exchange-traded call option is a
security for purposes of the 50-%-of-assets test and that its
issuer is the issuer of the underlying security, not the writer of
the option, for purposes of the diversification requirements. In
order to avoid realizing a gain within the three-month period, the
fund may be required to defer closing out a contract beyond the
time when it might otherwise be advantageous to do so. The fund
also may be restricted in purchasing put options for the purpose of
hedging underlying securities because of applying the short sale
holding period rules with respect to such underlying securities. <PAGE>
PAGE 64
Accounting for futures contracts will be according to generally
accepted accounting principles. Initial margin deposits will be
recognized as assets due from a broker (the fund's agent in
acquiring the futures position). During the period the futures
contract is open, changes in value of the contract will be
recognized as unrealized gains or losses by marking to market on a
daily basis to reflect the market value of the contract at the end
of each day's trading. Variation margin payments will be made or
received depending upon whether gains or losses are incurred. All
contracts and options will be valued at the last-quoted sales price
on their primary exchange.
<PAGE>
PAGE 65
APPENDIX D
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 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 through changing market
conditions 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>
PAGE 66
Independent auditors' report
The board of directors and shareholders
IDS Managed Retirement Fund, Inc.:
We have audited the accompanying statement of assets
and liabilities, including the schedule of investments
in securities, of IDS Managed Retirement Fund, Inc. as
of November 30, 1993, and the related statement of
operations for the year then ended and the statements
of changes in net assets for each of the years in the
two-year period ended November 30, 1993, and the
financial highlights for each of the years in the
eight-year period ended November 30, 1993, and for the
period from January 23, 1985 (commencement of
operations), to November 30, 1985. 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. As to securities purchased and sold but not
received or delivered, and securities on loan, we
request confirmations from brokers, and where replies
are not received, we carry out other appropriate
auditing procedures. 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.<PAGE>
PAGE 67
IDS Managed Retirement Fund, Inc.
___________________________________________________________________
In our opinion, the financial statements referred to
above present fairly, in all material respects, the
financial position of IDS Managed Retirement Fund,
Inc. at November 30, 1993, and the results of its
operations for the year then ended and the changes in
its net assets for each of the years in the two-year
period ended November 30, 1993, and the financial
highlights for the periods stated in the first
paragraph above, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick
Minneapolis, Minnesota
January 7, 1994
<PAGE>
PAGE 68
</TABLE>
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Managed Retirement Fund, Inc.
Nov. 30, 1993
__________________________________________________________________________________________________________
Assets
__________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,556,937,185) $1,874,515,901
Cash in bank on demand deposit 2,230,385
Receivable for investment securities sold 33,067,261
Dividends and accrued interest receivable 4,626,556
Receivable for forward foreign currency contracts held, at value (Notes 1 and 4) 12,891,703
U.S. government securities held as collateral (Note 5) 52,933,192
__________________________________________________________________________________________________________
Total assets 1,980,264,998
__________________________________________________________________________________________________________
Liabilities
__________________________________________________________________________________________________________
Payable for investment securities purchased 43,531,569
Payable for forward foreign currency contracts held, at value (Notes 1 and 4) 12,963,299
Payable upon return of securities loaned (Note 5) 77,408,292
Accrued investment management and services fee 843,021
Accrued distribution fee 101,237
Accrued transfer agency fee 251,194
Other accrued expenses 398,592
__________________________________________________________________________________________________________
Total liabilities 135,497,204
__________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,844,767,794
__________________________________________________________________________________________________________
Represented by
__________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 151,750,944 shares $ 1,517,509
Additional paid-in capital 1,384,884,231
Undistributed net investment income (Note 1) 3,180,521
Accumulated net realized gain on investments 137,678,413
Unrealized appreciation of investments (Note 4) 317,507,120
__________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $1,844,767,794
__________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 12.16
__________________________________________________________________________________________________________
<FN>
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 69
<TABLE>
<CAPTION>
Financial statements
Statement of operations
IDS Managed Retirement Fund, Inc.
Year ended Nov. 30, 1993
__________________________________________________________________________________________________________
Investment income
__________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $585,323) $ 29,280,082
Interest 8,197,656
__________________________________________________________________________________________________________
Total income 37,477,738
__________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 8,806,035
Distribution fee 1,066,250
Transfer agency fee 2,652,474
Compensation of directors 50,839
Compensation of officers 20,199
Custodian fees 235,381
Postage 355,194
Registration fees 199,400
Reports to shareholders 83,484
Audit fees 30,000
Administrative 29,480
Other 70,781
__________________________________________________________________________________________________________
Total expenses 13,599,517
__________________________________________________________________________________________________________
Investment income -- net 23,878,221
__________________________________________________________________________________________________________
Realized and unrealized gain on investments and foreign currency -- net
__________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions 138,631,701
(including gain of $55,002 from foreign currency transactions) (Note 3)
Net change in unrealized appreciation or depreciation of investments 11,572,135
__________________________________________________________________________________________________________
Net gain on investments and foreign currency 150,203,836
__________________________________________________________________________________________________________
Net increase in net assets resulting from operations $174,082,057
__________________________________________________________________________________________________________
<FN>
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 70
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Managed Retirement Fund, Inc.
Year ended Nov. 30,
__________________________________________________________________________________________________________
Operations and distributions 1993 1992
__________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 23,878,221 $ 23,598,760
Net realized gain on investments and foreign currency 138,631,701 98,392,128
Net change in unrealized appreciation or
depreciation of investments 11,572,135 117,921,699
__________________________________________________________________________________________________________
Net increase in net assets resulting from operations 174,082,057 239,912,587
__________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (25,829,748) (21,664,025)
Net realized gains on investments (97,315,857) (110,462,365)
Excess distribution of realized gain (Note 1) (55,002) (1,091,870)
__________________________________________________________________________________________________________
Total distributions (123,200,607) (133,218,260)
__________________________________________________________________________________________________________
Capital share transactions
__________________________________________________________________________________________________________
Proceeds from sales of
33,898,181 and 25,825,194 shares (Note 2) 394,118,183 286,078,536
Net asset value of 10,877,169 and 12,711,470 shares
issued in reinvestment of distributions 122,472,864 132,506,848
Payments for redemptions of
12,690,556 and 9,693,273 shares (147,340,355) (107,409,387)
__________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
32,084,794 and 28,843,391 shares 369,250,692 311,175,997
__________________________________________________________________________________________________________
Total increase in net assets 420,132,142 417,870,324
__________________________________________________________________________________________________________
Net assets at beginning of year 1,424,635,652 1,006,765,328
__________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$3,180,521 and $5,136,215) $1,844,767,794 $1,424,635,652
__________________________________________________________________________________________________________
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 71
Notes to financial statements
IDS Managed Retirement Fund, Inc.
______________________________________________________________________________
1. Summary of significant accounting policies
The fund is registered under the Investment Company
Act of 1940 (as amended) as a diversified, open-end
management investment company. Significant accounting
policies followed by the fund are summarized below:
Valuation of securities
All securities are valued at the close of each
business day. Securities traded on national
securities exchanges or included in national market
systems are valued at the last quoted sales price;
securities for which market quotations are not
readily available are valued at fair value according
to methods selected in good faith by the board of
directors. Determination of fair value involves,
among other things, reference to market indexes,
matrixes and data from independent brokers.
Short-term securities maturing in more than 60 days
from the valuation date are valued at the market
price or approximate market value based on current
interest rates; those maturing in 60 days or less are
valued at amortized cost.
<PAGE>
PAGE 72
Notes to financial statements
IDS Managed Retirement Fund, Inc.
______________________________________________________________________________
1. Summary of significant accounting policies
Option transactions
In order to produce incremental earnings, protect
gains, and facilitate buying and selling of
securities for investment purposes, the fund may buy
and sell put and call options and write covered call
options on portfolio securities and may write cash-
secured put options. The risk in writing a call
option is that the fund gives up the opportunity of
profit if the market price of the security increases.
The risk in writing a put option is that the fund may
incur a loss if the market price of the security
decreases and the option is exercised. The risk in
buying an option is that the fund pays a premium
whether or not the option is exercised. The fund also
has the additional risk of not being able to enter
into a closing transaction if a liquid secondary
market does not exist. The fund also may write over-
the-counter options where the completion of the
obligation is dependent upon the credit standing of
the other party.
Option contracts are valued daily at the closing
prices on their primary exchanges and unrealized
appreciation or depreciation is recorded. The fund
will realize a gain or loss upon expiration or
closing of the option transaction. When an option is
exercised, the proceeds on sales for a written call
option, the purchase cost for a written put option or
the cost of a security for a purchased put or call
option is adjusted by the amount of premium received
or paid.
<PAGE>
PAGE 73
Notes to financial statements
IDS Managed Retirement Fund, Inc.
______________________________________________________________________________
1. Summary of significant accounting policies
Foreign currency translations and
forward foreign currency contracts
Securities and other assets and liabilities
denominated in foreign currencies are translated
daily into U.S. dollars at the closing rate of
exchange. Foreign currency amounts related to the
purchase or sale of securities and income and
expenses are translated at the exchange rate on the
transaction date. It is not practicable to identify
that portion of realized and unrealized gain (loss)
arising from changes in the exchange rates from the
portion arising from changes in the market value of
investments.
The fund may enter into forward foreign currency
exchange contracts for operational purposes and to
protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the
fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency
exchange rates from an independent pricing service.
The fund is subject to the credit risk that the other
party will not complete the obligations of the
contract.
<PAGE>
PAGE 74
Notes to financial statements
IDS Managed Retirement Fund, Inc.
______________________________________________________________________________
1. Summary of significant accounting policies
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 primarily because of the deferral of losses
on certain futures contracts, the recognition of
certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred
due to "wash sale" transactions. 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. The effect on dividend
distributions of certain book-to-tax differences is
presented as "excess distributions" in the statement
of changes in net assets. 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,
undistributed net investment income has been
decreased by $4,167 resulting in a net
reclassification adjustment to increase
paid-in-capital by $4,167.
<PAGE>
PAGE 75
Notes to financial statements
IDS Managed Retirement Fund, Inc.
______________________________________________________________________________
1. Summary of significant accounting policies
Dividends to shareholders
Dividends declared and paid each calendar quarter
from net investment income are reinvested in
additional shares of the fund at net asset value or
payable in cash. Capital gains, when available, are
distributed along with the last income dividend of
the calendar year.
Other
Security transactions are accounted for on the date
securities are purchased or sold. Dividend income is
recognized on the ex-dividend date and interest
income, including level-yield amortization of premium
and discount is accrued daily.
______________________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991, the
fund pays IDS Financial Corporation (IDS) a fee for
managing its investments, recordkeeping and other
specified services. The fee is a percentage of the
fund's average daily net assets consisting of a group
asset charge in reducing percentages from 0.46% to
0.32% annually on the combined net assets of all
non-money market funds in the IDS MUTUAL FUND GROUP
and an individual annual asset charge of 0.14% of
average daily net assets. The fee is adjusted upward
or downward by a performance incentive adjustment
based on the fund's average daily net assets over a
rolling 12-month period as measured against the
change in the Lipper Growth and Income Fund Index.
The maximum adjustment is 0.08% of the fund's average
daily net assets after deducting 1% from the
performance difference. If the performance difference
is less than 1%, the adjustment will be zero. The
adjustment decreased the fee by $87,287 for the year
ended Nov. 30, 1993.
<PAGE>
PAGE 76
Notes to financial statements
IDS Managed Retirement Fund, Inc.
______________________________________________________________________________
2. Expenses and sales charges
The fund also pays IDS a distribution fee at an
annual rate of $6 per shareholder account and a
transfer agency fee at an annual rate of $15 per
shareholder account. The transfer agency fee is
reduced by earnings on monies pending shareholder
redemptions.
IDS will assume and pay any expenses (except taxes
and brokerage commissions) that exceed the most
restrictive applicable state expense limitation.
Sales charges by IDS Financial Services Inc. for
distributing fund shares were $10,164,983 for the
year ended Nov. 30, 1993. The fund also pays
custodian fees to IDS Bank & Trust, an affiliate of
IDS.
The fund has a retirement plan for its independent
directors. Upon retirement, directors receive monthly
payments equal to one-half of the retainer fee for as
many months as they served as directors up to 120
months. There are no death benefits. The plan is not
funded but the fund recognizes the cost of payments
during the time the directors serve on the board.
The retirement plan expense amounted to $21,174 for
the year ended Nov. 30, 1993.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of
securities (other than short-term obligations)
aggregated $1,238,390,894 and $960,848,363,
respectively, for the year ended Nov. 30, 1993.
Realized gains and losses are determined on an
identified cost basis.
Brokerage commissions paid to brokers affiliated with
IDS were $381,275 for the year ended Nov. 30, 1993.
<PAGE>
PAGE 77
Notes to financial statements
IDS Managed Retirement Fund, Inc.
______________________________________________________________________________
4. Forward foreign currency contracts
At Nov. 30, 1993, the fund had entered into 12
forward foreign currency exchange contracts that
obligate the fund to deliver currencies at specified
future dates. The unrealized depreciation of $71,596
on these contracts is included in the accompanying
financial statements. The terms of the open contracts
are as follows:
<TABLE><CAPTION>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered Nov. 30, 1993 received Nov. 30, 1993
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Dec. 1, 1993 5,421,906 $ 193,294 189,710 $ 189,710
Philippine Peso U.S. Dollar
Dec. 1, 1993 1,848,344 1,154,277 1,153,341 1,153,341
Singapore Dollar U.S. Dollar
Dec. 2, 1993 6,227,970 222,031 220,225 220,225
Philippine Peso U.S. Dollar
Dec. 2, 1993 905,804 565,668 565,174 565,174
Singapore Dollar U.S. Dollar
Dec. 2, 1993 2,271,207 1,418,352 1,417,113 1,417,113
Singapore Dollar U.S. Dollar
Dec. 3, 1993 743,392 290,637 290,558 290,558
Malaysian Dollar U.S. Dollar
Dec. 3, 1993 7,298,821 2,853,554 2,850,434 2,850,434
Malaysian Dollar U.S. Dollar
Dec. 3, 1993 2,639,696 94,107 93,341 93,341
Philippine Peso U.S. Dollar
Dec. 3, 1993 1,633,399 1,020,046 1,019,091 1,019,091
Singapore Dollar U.S. Dollar
Dec. 7, 1993 632,064 632,064 4,882,500 631,793
U.S. Dollar Hong Kong Dollar
Dec. 31, 1993 1,624,255 1,624,255 2,726,799,159 1,601,635
U.S. Dollar Italian Lira
Dec. 31, 1993 2,895,014 2,895,014 4,867,966,452 2,859,288
U.S. Dollar ____________ Italian Lira ___________
$12,963,299 $12,891,703
</TABLE>
<PAGE>
PAGE 78
Notes to financial statements
IDS Managed Retirement Fund, Inc.
______________________________________________________________________________
5. Lending of portfolio securities
At Nov. 30, 1993, securities valued at $77,108,200
were on loan to brokers. For collateral, the fund
received $24,475,100 in cash and U.S. government
securities valued at $52,933,192. Income from
securities lending amounted to $218,180 for the year
ended Nov. 30, 1993. The risks to the fund of
securities lending are that the borrower may not
provide additional collateral when required or return
the securities when due.
______________________________________________________________________________
6. Illiquid securities
At Nov. 30, 1993, investments in securities included
issues that are illiquid. The fund currently limits
investments in illiquid securities to 10% of the net
assets, at market value, at the time of purchase. The
aggregate value of such securities at Nov. 30, 1993,
was $8,000,000 which represents 0.4% of net assets.
Pursuant to guidelines adopted by the fund's board of
directors, certain unregistered securities are
determined to be liquid and are not included within
the 10% limitation specified above.
______________________________________________________________________________
7. Financial highlights
"Financial highlights" showing per share data and
selected information is presented on page 5 of the
prospectus.
<PAGE>
PAGE 79
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (92.9%)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Automotive & related (1.0%)
Automotive Inds 500,000 (b) $ 13,625,000
Hayes Wheels Intl 200,000 5,375,000
______________
Total 19,000,000
__________________________________________________________________________________________________________
Banks and savings & loans (1.4%)
Continental 425,000 10,625,000
First Amer 100,000 3,912,500
NationsBank 250,000 11,781,250
______________
Total 26,318,750
__________________________________________________________________________________________________________
Beverages & tobacco (0.4%)
Panamercian Beverages 200,000 7,275,000
__________________________________________________________________________________________________________
Building materials (3.7%)
Masco 1,100,000 37,400,000
Weyerhaeuser 700,000 30,625,000
______________
Total 68,025,000
__________________________________________________________________________________________________________
Chemicals (6.5%)
Air Products & Chemicals 600,000 (c) 26,475,000
Crompton & Knowles 600,000 12,600,000
Dow Chemical 624,500 36,299,063
Great Lakes Chemical 350,000 26,075,000
Lyondell Petrochem 300,000 6,037,500
Rohm & Haas 100,000 5,437,500
Sybron Chemicals 272,500 (b) 6,233,438
______________
Total 119,157,501
__________________________________________________________________________________________________________
Communications equipment (1.3%)
Alltell 500,000 12,875,000
Raychem 150,000 5,531,250
Synoptics Communications 225,000 (b) 5,737,500
______________
Total 24,143,750
__________________________________________________________________________________________________________
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 80
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (continued)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Computers & office equipment (5.4%)
Cisco Systems 600,000 (b,c) $ 33,750,000
Microsoft 300,000 (b) 24,000,000
Novell 500,000 (b) 11,750,000
Pitney Bowes 600,000 25,200,000
Sun Microsystems 200,000 (b,c) 5,325,000
______________
Total 100,025,000
__________________________________________________________________________________________________________
Electronics (3.1%)
Intel 500,000 30,750,000
Motorola 200,000 18,750,000
Vishay Intertechnology 260,500 (b) 8,466,250
______________
Total 57,966,250
__________________________________________________________________________________________________________
Energy (4.0%)
Amoco 250,000 13,343,750
Cross Timber 24,100 343,425
Devon Energy 240,000 4,410,000
Enron 400,000 12,450,000
HS Resources 128,700 (b) 2,927,925
Occidental Petroleum 1,100,000 19,525,000
Union Texas Petroleum 600,000 (c) 11,550,000
YPF 400,000 9,900,000
______________
Total 74,450,100
__________________________________________________________________________________________________________
Financial services (7.2%)
BankAmerica 500,000 22,187,500
Block (H&R) 300,000 11,512,500
Federal Natl Mtge 300,000 22,650,000
MBNA 900,000 28,462,500
Morgan Stanley 350,000 25,112,500
North Amer Mtge 100,000 2,650,000
State Street Boston 450,000 17,043,750
TIG Holdings 151,000 3,340,875
______________
Total 132,959,625
__________________________________________________________________________________________________________
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 81
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (continued)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Furniture & appliances (0.6%)
Singer 300,000 $ 11,175,000
__________________________________________________________________________________________________________
Health care (10.0%)
Abbott Laboratories 300,000 8,775,000
Amgen 300,000 (b) 13,575,000
Bergen Brunswig Cl 300,000 5,400,000
Bristol-Myers Squibb 300,000 17,962,500
Colgate-Palmolive 400,000 (c) 23,700,000
Dentsply Intl 110,000 (b) 4,455,000
Genzyme 140,000 (b,c) 4,340,000
Johnson & Johnson 250,000 10,906,250
Medtronic 200,000 15,450,000
Pfizer 350,000 23,275,000
Schering-Plough 150,000 10,031,250
United Healthcare 250,000 18,093,750
U.S. HealthCare 350,000 (c) 20,256,250
Warner-Lambert 125,000 8,296,875
_____________
Total 184,516,875
__________________________________________________________________________________________________________
Industrial equipment & services (1.0%)
General Signal 180,000 6,300,000
Illinois Tool Works 300,000 11,362,500
______________
Total 17,662,500
__________________________________________________________________________________________________________
Industrial transportation (3.1%)
CSX 375,000 31,125,000
Southwest Airlines 750,000 26,062,500
______________
Total 57,187,500
__________________________________________________________________________________________________________
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 82
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (continued)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Insurance (2.5%)
ACE Limited 350,000 $ 10,193,750
EW Blanch 600,000 (c) 11,700,000
Tempest Reinsurance Private 80,000 (b,f) 8,000,000
Travelers 517,800 16,375,425
___________________
Total 46,269,175
__________________________________________________________________________________________________________
Leisure time & entertainment (3.1%)
Bally Gaming Intl 285,000 (b) 5,201,250
Caesars World 250,000 (b) 12,218,750
Hollywood Casino 250,000 (b,c) 3,187,500
Intl Game Technology 800,000 (c) 24,200,000
Polaroid 200,000 7,075,000
President Riverboat 210,000 (b,c) 5,040,000
______________
Total 56,922,500
__________________________________________________________________________________________________________
Metals (0.6%)
Oregon Steel Mills 500,000 11,625,000
__________________________________________________________________________________________________________
Multi-industry conglomerates (4.8%)
Eastman Kodak 310,500 (c) 18,901,687
Emerson Electric 350,000 19,775,000
General Electric 300,000 29,475,000
ITT 131,200 11,676,800
Westinghouse 549,800 7,697,200
______________
Total 87,525,687
__________________________________________________________________________________________________________
Natural gas (0.5%)
Equitable Resources 250,000 9,062,500
__________________________________________________________________________________________________________
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 83
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (continued)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Retail (4.8%)
Carter Hawley Hale 851,800 (b) $ 10,221,600
Dillard Dept Store Cl A 275,000 11,343,750
Duracell Intl 450,000 15,525,000
Federated Dept Stores 350,000 (b) 7,656,250
Gap 200,000 8,000,000
General Nutrition 200,000 (b) 5,350,000
Limited 250,000 5,687,500
McKesson 100,000 5,637,500
Nordstrom 300,000 10,575,000
Rubbermaid 240,500 8,056,750
______________
Total 88,053,350
__________________________________________________________________________________________________________
Textiles & apparel (0.3%)
Haggar 250,000 5,187,500
__________________________________________________________________________________________________________
Utilities-telephone (3.6%)
IDB Communications 125,000 (b) 5,593,750
McCaw Cellular Cl A 400,000 (b) 20,500,000
MCI Communications 1,200,000 29,250,000
Pacific Telesis 200,000 11,350,000
______________
Total 66,693,750
_________________________________________________________________________________________________________
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 84
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
_________________________________________________________________________________________________________
Common stocks (continued)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Foreign (24.0%)(d)
Austria (0.3%)
Wienerberger Baust 15,000 $ 4,756,860
__________________________________________________________________________________________________________
Bermuda (0.7%)
Banking Intl 1,630,000 (b) 6,314,620
PT Smart 2,440,000 6,844,200
Semen Gresik 157,000 582,156
______________
Total 13,740,976
__________________________________________________________________________________________________________
Canada (2.1%)
Magna Intl Cl A 100,000 4,337,500
Renaissance Energy 104,800 (b) 2,058,283
Renaissance Energy 108,500 (b,e) 2,130,953
Sceptre Resources 1,000,000 (b) 8,978,330
Tarragon Oil & Gas 390,000 4,632,262
Westcoast Energy 1,000,000 16,500,000
______________
Total 38,637,328
__________________________________________________________________________________________________________
France (2.2%)
Credit Local de France 150,000 11,467,650
Michelin Cl B 300,000 9,201,300
Valeo 101,055 (c) 19,617,302
______________
Total 40,286,252
__________________________________________________________________________________________________________
Hong Kong (1.7%)
Guoco 4,500,000 20,385,000
Luks Inds 20,000,000 5,420,000
Tian An China 16,000,000 5,792,000
______________
Total 31,597,000
__________________________________________________________________________________________________________
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 85
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (continued)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Israel (0.6%)
Ayala Cl B 4,000,000 $ 5,560,000
Intl Container Service 4,000,000 (b) 5,344,000
______________
Total 10,904,000
__________________________________________________________________________________________________________
Malaysia (4.4%)
Aokam Perdana 2,000,000 19,548,000
Berjaya Sports Toto 2,000,000 4,496,000
Granite Inds 2,000,000 (b) 11,494,000
Hume 2,750,000 9,190,500
Kian Joo Can 1,400,000 5,581,800
Magnum 2,500,000 (b) 5,960,000
Malaysian Resources 6,000,000 14,538,000
Renong 503,000 652,391
Technology Resources 2,500,000 (b) 10,262,726
______________
Total 81,723,417
__________________________________________________________________________________________________________
Mexico (1.9%)
Grupo Financial Bancomer 2,800,000 5,034,400
Grupo Televisa ADR 400,000 (e) 23,750,000
Telefonos de Mexico 100,000 5,575,000
______________
Total 34,359,400
__________________________________________________________________________________________________________
Netherlands (2.7%)
Royal Dutch Petroleum 100,000 10,100,000
Schlumberger 400,000 23,000,000
Unilever NV 150,000 16,818,750
______________
Total 49,918,750
__________________________________________________________________________________________________________
New Zealand (0.4%)
Carter Holt Harvey 4,059,925 7,600,180
__________________________________________________________________________________________________________
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 86
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (continued)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Singapore (1.9%)
Fraser & Neave 550,000 $ 5,258,000
Hotel Properties 8,500,000 12,316,500
Hotel Properties Loan Stock 425,000 (b) 2,144,125
Sungei Way Holdings 1,100,000 4,558,400
United Overseas 1,500,000 11,622,000
______________
Total 35,899,025
__________________________________________________________________________________________________________
Sweden (0.8%)
Ericsson LM ADR 9,260,870 14,759,975
__________________________________________________________________________________________________________
United Kingdom (2.3%)
Enterprise Oil ADR 1,029,899 19,696,818
Repsol S.A. ADR 800,000 22,900,000
______________
Total 42,596,818
__________________________________________________________________________________________________________
United States (2.0%)
Dao Heng Holdings 225,000 (b) 632,063
Ek Chor China Motorcycle 250,000 6,906,250
Mahindra & Mahindra 322,580 (b) 2,822,575
Masisa 150,000 2,981,250
Olivetti 10,000,000 (b) 10,250,000
Royal Caribbean Cruises 400,000 10,300,000
Sociedad Quinica 75,800 (b) 1,800,250
Telekom Asia 23,900 (b) 522,812
______________
Total 36,215,200
__________________________________________________________________________________________________________
Total common stocks
(Cost: $1,402,007,312) $1,714,197,494
__________________________________________________________________________________________________________
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 87
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
__________________________________________________________________________________________________________
Preferred stocks & other (1.2%)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
_________________________________________________________________________________________________________
<S> <C> <C>
Equitable
6% Cv 270,000 (e) $ 16,605,000
LSB Inds
3.25% Cv 100,000 5,450,000
Luks Ind
Warrants 2,400,000 165,600
Tian An China
Rights 2,000,000 (d) 193,240
_________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $18,500,004) $ 22,413,840
__________________________________________________________________________________________________________
Bonds (3.1%)
__________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
__________________________________________________________________________________________________________
<S> <C> <C>
U.S. government obligation (1.4%)
U.S. Treasury
8.25% 1994 $25,000,000 $ 26,066,997
_________________________________________________________________________________________________________
Domestic (1.1%)
Costco Wholesale
5.75% Cv Bond 2002 15,000,000 14,400,000
Medical Care Intl
6.75% Bond 2006 6,500,000 (e) 5,817,500
______________
Total 20,217,500
_________________________________________________________________________________________________________
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 88
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
__________________________________________________________________________________________________________
Bonds (continued)
__________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
__________________________________________________________________________________________________________
<S> <C> <C>
Foreign (0.6%)(d)
Banco Nacional de Mexico
7% Cv Bond 1999 $10,000,000 (e) $ 11,625,000
__________________________________________________________________________________________________________
Total bonds
(Cost: $56,434,102) $ 57,909,497
__________________________________________________________________________________________________________
Short-term securities (4.3%)
__________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_________________________________________________________________________________________________________
<S> <C> <C> <C>
Commercial paper (4.2%)
Bancone Diversified
Services
12-03-93 3.10% $3,100,000 $ 3,099,468
12-08-93 3.11 6,700,000 6,695,961
BBV Finance Delaware
12-17-93 3.11 3,600,000 3,595,040
Becton Dickinson & Co
12-22-93 3.10 1,300,000 1,297,657
Ciesco LP
12-08-93 3.09 700,000 699,581
12-14-93 3.11 2,700,000 2,696,977
01-05-94 3.34 1,800,000 1,794,190
Consolidated Rail
12-15-93 3.11 6,000,000 (g) 5,992,767
Corporate Receivables
12-23-93 3.10 6,800,000 6,787,159
CPC Intl
12-10-93 3.11 5,800,000 (g) 5,795,505
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 89
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
__________________________________________________________________________________________________________
Short-term securities (continued)
__________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
__________________________________________________________________________________________________________
<S> <C> <C> <C>
Commercial paper (cont'd)
Hewlett-Packard
12-07-93 3.11% $6,000,000 $ 5,996,900
Morgan Stanley Group
01-12-94 3.35 3,700,000 3,685,626
Penney (JC) Funding
12-14-93 3.10 4,000,000 3,995,537
12-16-93 3.11 2,000,000 1,997,417
Pioneer Hi-Bred Intl
12-02-93 3.11 2,600,000 2,599,776
Quaker Oats
12-09-93 3.11 2,500,000 (g) 2,498,278
12-16-93 3.11 2,900,000 (g) 2,896,254
St. Paul Companies
12-13-93 3.11 2,600,000 (g) 2,597,313
Sandoz
12-15-93 3.11 600,000 599,277
Southwestern Bell Tel
12-13-93 3.12 2,500,000 2,497,408
12-15-93 3.10 5,900,000 5,892,910
12-16-93 3.10 4,600,000 (g) 4,594,077
______________
Total 78,305,078
_________________________________________________________________________________________________________
Letter of credit (0.1%)
Mellon Bank-
Oxford Finance
01-28-94 3.42 1,700,000 1,689,992
__________________________________________________________________________________________________________
Total short-term securities
(Cost: $79,995,767) $ 79,995,070
__________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,556,937,185)(h) $1,874,515,901
__________________________________________________________________________________________________________
<FN>
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 90
<TABLE>
<CAPTION>
IDS Managed Retirement Fund, Inc.
__________________________________________________________________________________________________________
Investments in securities (continued)
__________________________________________________________________________________________________________
<FN>
Notes to investments in securities
__________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Presently non-income producing.
(c) Security is partially or fully on loan. See Note 5 to the financial statements.
(d) Foreign security values and principal amounts are stated in U.S. dollars.
(e) Represents securities sold under Rule 144A and are exempt from registration under the Securities Act
of 1933, as amended. These securities have been determined to be liquid under guidelines established
by the board of directors.
(f) Identifies issues considered to be illiquid (see Note 6 to the financial statements). Information
concerning such security holdings at Nov. 30, 1993, is as follows:
Acquisition
Security date Cost
________________________________________________________________________________________________________
<S> <C> <C>
Tempest Reinsurance 09-13-93 $8,000,000
(g) 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." These securities have been determined to be liquid under
guidelines established by the board of directors.
(h) At Nov. 30, 1993, the cost of securities for federal income tax purposes was $1,556,901,858 and the
aggregate gross unrealized appreciation and depreciation based on that cost was:
<S> <C>
Unrealized appreciation $343,823,845
Unrealized depreciation (26,209,802)
___________________________________________________________________________________________
Net unrealized appreciation $317,614,043
________________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 91
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits.
(a) FINANCIAL STATEMENTS:
Independent auditors' report dated January 7, 1994.
Statements:
Statements of assets and liabilities, November 30, 1993.
Statement of operations, fiscal year ended November 30, 1993.
Statements of changes in net assets, for the year ended
November 30, 1993 and November 30, 1992.
Notes to financial statements.
Schedules:
1. Investments in securities, November 30, 1993.
Notes to investments in securities.
(b) EXHIBITS:
1. Copy of Articles of Incorporation, as amended December 13,
1988, filed electronically as Exhibit 1 to Registrant's Post-
Effective Amendment No. 9 to Registration Statement No. 2-
93801, is incorporated herein by reference.
2. Copy of By-laws, as amended January 12, 1989, filed
electronically as Exhibit 2 to Registrant's Post-Effective
Amendment No. 10 to Registration Statement No. 2-93801, is
incorporated herein by reference.
3. Not Applicable.
4. Form of Stock Certificate for common stock, filed as Exhibit
No. 4 to Registration Statement No. 2-93801, is incorporated
herein by reference.
5. Investment Management and Services Agreement, dated November
14, 1991, between Registrant and IDS Financial Corporation,
filed electronically as Exhibit 5 to Registrant's Post-
Effective Amendment No. 13 to Registration Statement No. 2-
93801, is incorporated herein by reference.
6. Copy of Distribution Agreement, dated January 1, 1987, filed
electronically as Exhibit 6 to Registrant's Post-Effective
Amendment No. 5 to Registration Statement No. 2-93801, is
incorporated herein by reference.
<PAGE>
PAGE 92
7. All employees who have attained age 21 and completed one year
of service are eligible to participate in a thrift plan.
Entry into the plan is Jan. 1 or July 1 following completion
of the age and service requirements. The Fund contributes
each year an amount up to 15 percent of their annual salaries,
the maximum amount permitted under Section 404 (a) of the
Internal Revenue Code, or up to a maximum of .08 of 1% of the
Fund's net income before income taxes and other adjustments.
Employees of the Registrant become eligible to participate in
a retirement plan on Jan. 1 or July 1 following completion of
one year of employment and attainment of age 21.
Contributions to the retirement plan cease no later than the
time at which the participant reaches the normal retirement of
age 65.
8(a) Form of Custodian Agreement, filed as Exhibit 8 to
Registration Statement No. 2-93801, is incorporated herein by
reference.
(b) Copy of Sub-Custodian Agreement, dated July 1, 1992, between
Boston Safe Deposit and Trust Company and IDS Bank and Trust,
filed as Exhibit 8(c) to Post-Effective Amendment No. 16 to
Registration Statement No. 2-93801, is incorporated herein by
reference.
9. Transfer Agency Agreement, dated November 14, 1991, between
Registrant and IDS Financial Corporation, filed electronically
as Exhibit 9 to Post-Effective Amendment No. 13 to
Registration Statement No. 2-93801, is incorporated herein by
reference.
10. Opinion and Consent of Counsel, filed as Exhibit 10 to Pre-
Effective Amendment No. 1 to Registration Statement No. 2-
93801, is incorporated herein by reference.
11. Independent Auditors' Consent, filed electronically.
12. None.
13. Letter of IDS/American Express Inc. as sole shareholder, filed
as Exhibit 13 to Pre-Effective Amendment No. 1 to Registration
Statement No. 2-93801, is incorporated herein by reference.
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. 19 to Registration Statement No. 2-
54516, are incorporated herein by reference.
15. Plan and Supplemental Agreement of Distribution, dated
January 1, 1987, filed electronically as Exhibit 15 to
Registrant's Post-Effective Amendment No. 5 to Registration
Statement No. 2-93801, is incorporated herein by reference.
16. Schedule for computation of each performance quotation
provided in the Registration Statement in response to Item
22(b), filed as Exhibit 16 to Post-Effective Amendment No. 16
to Registration Statement No. 2-93801, is incorporated herein
by reference.
<PAGE>
PAGE 93
17(a). Directors' Power of Attorney, dated October 14, 1993, to
sign amendments to this Registration Statement, filed
electronically as Exhibit 17(a) to Post-Effective
Amendment No. 17 to Registration Statement No. 2-93801,
is incorporated herein by reference.
17(b). Officers' Power of Attorney, dated June 1, 1993, to sign
amendments to this Registration Statement, filed
electronically as Exhibit 17(b) to Post-Effective
Amendment No. 17 to Registration Statement No. 2-93801,
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 January 14, 1994
Common Stock 179,244
<PAGE>
PAGE 94
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.
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.
<PAGE>
<PAGE> 1
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)
Directors and officers of IDS Financial Corporation who are
directors and/or officers of one or more other companies:
Ronald G. Abrahamson, Vice President--Field Administration
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Manager Support
Minneapolis, MN 55440
Jerome R. Amundson, Vice President and Controller--Mutual Funds
Operations
IDS Financial Services Inc. Vice President and
IDS Tower 10 Controller-Mutual Funds
Minneapolis, MN 55440 Operations
Douglas A. Alger, Vice President--Compensation and Benefits
IDS Financial Services Inc. Vice President-
IDS Tower 10 Compensation and
Minneapolis, MN 55440 Benefits
Peter J. Anderson, Director, Senior Vice President--Advisory Group
and Equity Management
IDS Securities Corporation Executive Vice President-
IDS Advisory Group Inc. Investments
IDS Tower 10 Director, President and
Minneapolis, MN 55440 Chairman of the Board
IDS Capital Holdings Inc. Director and President
IDS International, Inc. Director, Chairman of the
Board and Executive Vice
President
IDS Financial Services Inc. Senior Vice President-
Advisory Group and Equity
Management
IDS Fund Management Limited Director
NCM Capital Management Group, Inc. Director
2 Mutual Plaza
501 Willard Street
Durham, NC 27701
<PAGE>
<PAGE> 2
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Kent L. Ashton, Vice President--Group Management Office, Banking
and Certificates Group
IDS Financial Services Inc. President-Group Management
IDS Tower 10 Office, Banking and
Minneapolis, MN 55440 Certificates
Timothy V. Bechtold, Vice President--Insurance Product Development
IDS Financial Services Inc. Vice President-Insurance
IDS Tower 10 Product Development
Minneapolis, MN 55440
IDS Life Insurance Company Vice President-Insurance
Product Development
John D. Begley, Vice President--Mid-Central Region
IDS Insurance Agency of Alabama Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Arkansas Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Massachusetts Vice President-Mid-Central
Inc. Region
IDS Insurance Agency of New Mexico Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of North Carolina Vice President-Mid-Central
Inc. Region
IDS Insurance Agency of Ohio Inc. Vice President-Mid-Central
Inc. Region
IDS Insurance Agency of Wyoming Inc. Vice President-Mid-Central
Region
IDS Financial Services Inc. Vice President-
IDS Tower 10 Mid-Central Region
Minneapolis, MN 55440
Carl E. Beihl, Vice President--Strategic Planning and Architecture
IDS Financial Services Inc. Vice President,
IDS Tower 10 Strategic Planning
Minneapolis, MN 55440 and Architecture
Alan F. Bignall, Vice President--Financial Planning Systems
IDS Financial Services Inc. Vice President-
IDS Tower 10 Product Systems
Minneapolis, MN 55440 Services
<PAGE>
<PAGE> 3
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Brent L. Bisson, Vice President--Northwest Region
IDS Financial Services Inc. Vice President-
IDS Tower 10 Northwest Region
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Northwest Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Northwest Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Northwest Region
IDS Insurance Agency of New Mexico Vice President-
Inc. Northwest Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Northwest Region
IDS Insurance Agency of Ohio Inc. Vice President-
Northwest Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Northwest Region
Thomas J. Brakke, Vice President--Investment Services and
Investment Research
IDS Financial Corporation Vice President-Investment
IDS Tower 10 Services and Investment
Minneapolis, MN 55440 Research
Karl J. Breyer, Director, Senior Vice President and General Counsel
IDS Financial Services Inc. Senior Vice President
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
IDS Aircraft Services Corporation Director and President
John L. Burbidge, Vice President--Government Relations
IDS Life Insurance Company
IDS Financial Services Inc. Vice President-
IDS Tower 10 Customer Relations
Minneapolis, MN 55440
<PAGE>
<PAGE> 4
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Harold E. Burke, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Orison Y. Chaffee III, Vice President--Field Real Estate
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James Choat, Senior Region Vice President
IDS Financial Services Inc. Senior Region Vice
IDS Tower 10 President
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President--North
Central Region
IDS Insurance Agency of Arkansas Inc. Vice President--North
Central Region
IDS Insurance Agency of Massachusetts Vice President--North
Inc. Central Region
IDS Insurance Agency of New Mexico Vice President--North
Inc. Central Region
IDS Insurance Agency of North Carolina Vice President--North
Inc. Central Region
IDS Insurance Agency of Ohio Inc. Vice President--North
Central Region
IDS Insurance Agency of Wyoming Inc. Vice President-- North
Central Region
Kenneth J. Ciak, Vice President and General Manager--IDS Property
Casualty
IDS Property Casualty Insurance Co. Director, President
1 WEG Blvd
DePere, Wisconsin 54115
IDS Financial Services Inc. Vice President and General
Manager-IDS Property
Casualty
<PAGE>
<PAGE> 5
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Roger C. Corea, Vice President--Northeast Region
IDS Financial Services Inc. Vice President-
IDS Tower 10 Northeast Region
Minneapolis, MN 55440
IDS Life Insurance Co. of New York Director
Box 5144
Albany, NY 12205
IDS Insurance Agency of Alabama Inc. Vice President -
Northeast Region
IDS Insurance Agency of Arkansas Inc. Vice President -
Northeast Region
IDS Insurance Agency of Massachusetts Vice President -
Inc. Northeast Region
IDS Insurance Agency of New Mexico Inc. Vice President -
Northeast Region
IDS Insurance Agency of North Carolina Vice President -
Inc. Northeast Region
IDS Insurance Agency of Ohio, Inc. Vice President -
Northeast Region
IDS Insurance Agency of Wyoming Inc. Vice President -
Northeast Region
Kevin F. Crowe, Vice President--Field Management Development
IDS Financial Services Inc. Vice President - Field
IDS Tower 10 Marketing Development
Minneapolis, MN 55440
Alan R. Dakay, Vice President--Institutional Insurance Marketing
IDS Financial Services Inc. Vice President -
IDS Tower 10 Institutional Insurance
Minneapolis, MN 55440 Marketing
American Enterprise Life Insurance Co. Director
IDS Life Insurance Company Vice President -
Institutional Insurance
Marketing
<PAGE>
<PAGE> 6
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
William F. Darland, Vice President--South Central Region
IDS Insurance Agency of Alabama Inc. Vice President-
South Central Region
IDS Insurance Agency of Arkansas Inc. Vice President -
South Central Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. South Central Region
IDS Insurance Agency of New Mexico Inc. Vice President-
South Central Region
IDS Insurance Agency of North Carolina Vice President-
Inc. South Central Region
IDS Insurance Agency of Ohio Inc. Vice President-
South Central Region
IDS Insurance Agency of Wyoming Inc. Vice President-
South Central Region
IDS Financial Services Inc. Vice President-
IDS Tower 10 South Central Region
Minneapolis, MN 55440
Michael P. Ducar, Vice President--Investment Services
IDS Financial Services Inc. Vice President-
IDS Tower 10 Investment Services
Minneapolis, MN 55440
William H. Dudley, Director, Executive Vice President--Investment
and Brokerage Operations
IDS Financial Services Inc. Director, Executive Vice
IDS Tower 10 President-Investment and
Minneapolis, MN 55440 Brokerage Operations
IDS Capital Holdings Inc. Director
IDS Futures Corporation Director
IDS Advisory Group Inc. Director
IDS Futures III Corporation Director
IDS International, Inc. Director
IDS Securities Services Chairman, President and
Chief Executive Officer
IDS Securities Corporation Director, Chairman of the
Board, President and
Chief Executive Officer
IDS Life Insurance Company Vice President
American Enterprise Investment Director
Services Inc.
American Enterprise Investment Director
Services Inc.
<PAGE>
<PAGE> 7
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Roger S. Edgar, Director, Senior Vice President--Information
Systems
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Information Systems
Minneapolis, MN 55440
Gordon L. Eid, Director, Senior Vice President and Deputy General
Counsel
IDS Insurance Agency of Alabama Inc. Director, Vice President
IDS Insurance Agency of Arkansas Inc. Director, Vice President
IDS Insurance Agency of Massachusetts Director, Vice President
Inc.
IDS Insurance Agency of New Mexico Inc. Director, Vice President
IDS Insurance Agency of North Carolina Director, Vice President
Inc.
IDS Insurance Agency of Ohio Inc. Director, Vice President
IDS Insurance Agency of Wyoming Inc. Director, Vice President
IDS Real Estate Services, Inc. Vice President
IDS Financial Services Inc. Senior Vice President and
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Investors Syndicate Development Corp. Director
Edwin W. Elder III, Vice President--Operations/IDS Property
Casualty
IDS Property Casualty Insurance Co. Vice President-Operations
1 WEG Blvd.
Depere, WI 54115
Elizabeth A. Elder, Vice President--Systems Services
IDS Financial Services Inc. Vice President-Systems
IDS Tower 10 Services
Minneapolis, MN 55440
Mark A. Ernst, Vice President--Tax and Business Services
IDS Financial Services Inc. Vice President-Tax and
IDS Tower 10 Business Services
Minneapolis, MN 55440
IDS Tax and Business Services Vice President-Tax and
Business Services
<PAGE>
<PAGE> 8
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Gordon M. Fines, Vice President--Mutual Fund Equity Investments
IDS Financial Services Inc. Vice President-
Mutual Fund Equity
Investments
IDS International Inc. Vice President and
Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS Tower 10
Minneapolis, MN 55440
Louis C. Fornetti, Director, Senior Vice President--Corporate
Controller
IDS Financial Services Inc. Senior Vice President-
Corporate Controller
IDS Property Casualty Insurance Co. Director; Vice President
IDS Tower 10
Minneapolis, MN 55440
American Enterprise Investment Vice President
Services Inc.
IDS Capital Holdings Inc. Director and Senior
Vice President
IDS Certificate Company Vice President
IDS Insurance Agency of Alabama Inc. Vice President
IDS Insurance Agency of Arkansas Inc. Vice President
IDS Insurance Agency of Massachusetts Vice President
Inc.
IDS Insurance Agency of New Mexico Inc. Vice President
IDS Insurance Agency of North Carolina Vice President
Inc.
IDS Insurance Agency of Ohio Inc. Vice President
IDS Insurance Agency of Wyoming Inc. Vice President
IDS Life Series Fund, Inc. Vice President
IDS Life Variable Annuity Funds A&B Vice President
IDS Real Estate Services, Inc. Vice President
IDS Securities Corporation Vice President
Investors Syndicate Development Corp. Vice President
<PAGE>
<PAGE> 9
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Douglas L. Forsberg, Vice President--Securities Services
IDS Financial Services Inc. Vice President-
Securities Services
IDS Securities Services Vice President and
General Manager
American Enterprise Investment Director, President and
Services Inc. Chief Executive Officer
Robert G. Gilbert, Vice President--Real Estate
IDS Financial Services Inc. Vice President-
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden, Vice President--Field Compensation Development
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Compensation
Minneapolis, MN 55440
Harvey Golub, Director
American Express Company Director and President
American Express Tower
World Financial Center
New York, New York 10285
American Express Travel Chairman and Chief
Related Services Company, Inc. Executive Officer
IDS Bond Fund, Inc. Director
IDS California Tax-Exempt Trust Trustee
IDS Discovery Fund, Inc. Director
IDS Equity Plus Fund, Inc. Director
IDS Extra Income Fund, Inc. Director
IDS Federal Income Fund, Inc. Director
IDS Global Series, Inc. Director
IDS Growth Fund, Inc. Director
IDS High Yield Tax-Exempt Fund, Inc. Director
IDS International Fund, Inc. Director
IDS Investors Series, Inc. Director
IDS Managed Retirement Fund, Inc. Director
IDS Market Advantage Series, Inc. Director
IDS Money Market Series, Inc. Director
IDS New Dimensions Fund, Inc. Director
<PAGE>
<PAGE> 10
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Precious Metals Fund, Inc. Director
IDS Progressive Fund, Inc. Director
IDS Selective Fund, Inc. Director
IDS Special Tax-Exempt Series Trust Trustee
IDS Stock Fund, Inc. Director
IDS Strategy Fund, Inc. Director
IDS Tax-Exempt Bond Fund, Inc. Director
IDS Tax-Free Money Fund, Inc. Director
IDS Utilities Income Fund, Inc. Director
IDS Life Capital Resource Fund, Inc. Director
IDS Life Special Income Fund, Inc. Director
IDS Life Managed Fund, Inc. Director
IDS Life Moneyshare Fund, Inc. Director
National Computer Systems, Inc. Director
11000 Prairie Lakes Drive
Minneapolis, MN 55440
Morris Goodwin Jr., Vice President and Corporate Treasurer
American Express Minnesota Foundation Director, Vice President
and Treasurer
American Enterprise Investment Vice President and
Services Inc. Treasurer
IDS Aircraft Services Corporation Vice President and
Treasurer
IDS Advisory Group Inc. Vice President and
Treasurer
IDS Cable Corporation Vice President and
Treasurer
IDS Cable II Corporation Vice President and
Treasurer
IDS Capital Holdings Inc. Vice President and
Treasurer
IDS Certificate Company Vice President and
Treasurer
IDS Insurance Agency of Alabama Inc. Vice President and
Treasurer
IDS Insurance Agency of Arkansas Inc. Vice President and
Treasurer
IDS Insurance Agency of Massachusetts Vice President and
Inc. Treasurer
IDS Insurance Agency of New Mexico Inc. Vice President and
Treasurer
IDS Insurance Agency of North Carolina Vice President and
Inc. Treasurer
IDS Insurance Agency of Ohio Inc. Vice President and
Treasurer
<PAGE>
<PAGE> 11
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Insurance Agency of Wyoming Inc. Vice President and
Treasurer
IDS International, Inc. Vice President and
Treasurer
IDS Life Series, Inc. Vice President and
Treasurer
IDS Life Variable Annuity Funds A&B Vice President and
Treasurer
IDS Management Corporation Vice President and
Treasurer
IDS Partnership Leasing Corporation Vice President and
Treasurer
IDS Partnership Services Corporation Vice President and
Treasurer
IDS Plan Services of California, Inc. Vice President and
Treasurer
IDS Property Casualty Insurance Co. Vice President and
Treasurer
IDS Real Estate Services, Inc Vice President and
Treasurer
IDS Real Estate Corporation Vice President and
Treasurer
IDS Realty Corporation Vice President and
Treasurer
IDS Securities Corporation Vice President and
Treasurer
Investors Syndicate Development Corp. Vice President and
Treasurer
Peninsular Properties, Inc. Vice President and
Treasurer
IDS Plan Services of California, Inc. Vice President and
Treasurer
IDS Financial Services Inc. Vice President and
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Sloan Financial Group, Inc. Director
2 Mutual Plaza
501 Willard Street
Durham, NC 27701
NCM Capital Management Group, Inc. Director
2 Mutual Plaza
501 Willard Street
Durham, NC 27701
<PAGE>
<PAGE> 12
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Sara J. Grady, Vice President--Human Resources and Organizational
Development
IDS Financial Services Inc. Vice President-Human
IDS Tower 10 Resources and
Minneapolis, MN 55440 Organization Development
David A. Hammer, Vice President and Marketing Controller
IDS Financial Services Inc. Vice President and
IDS Tower 10 Marketing Controller
Minneapolis, MN 55440
IDS Plan Services of California, Inc. Director
Robert L. Harden, Vice President--Mid-Atlantic Region
IDS Insurance Agency of Alabama Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Mid Atlantic Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Mid Atlantic Region
IDS Insurance Agency of Ohio Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Mid Atlantic Region
IDS Financial Services Inc. Vice President-
IDS Tower 10 Mid Atlantic Region
Minneapolis, MN 55440
Lorraine R. Hart, Vice President--Insurance Investments
IDS Financial Services Inc. Vice President-Insurance
IDS Tower 10 Investments
Minneapolis, MN 55440
American Enterprise Life Vice President-Investments
Insurance Company
IDS Life Insurance Company Vice President-Investments
<PAGE>
<PAGE> 13
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Mark S. Hays, Vice President--Senior Portfolio Manager, IDS
International
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager, IDS
Minneapolis, MN 55440 International
IDS Fund Management Limited Director
IDS International, Inc. Senior Vice President
Robert H. Healy, Vice President--Senior Portfolio Manager
IDS Securities Corporation Vice President and Chief
Investment Officer
IDS Securities Services Exec. Vice President and
Chief Investment Officer
IDS Advisory Group Inc. Senior Vice President
IDS Financial Services Inc. Vice President-
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
James G. Hirsh, Vice President and Assistant General Counsel
IDS Insurance Agency of Alabama Inc. Vice President
IDS Insurance Agency of Arkansas Inc. Vice President
IDS Insurance Agency of Massachusetts Vice President
Inc.
IDS Insurance Agency of New Mexico Inc. Vice President
IDS Insurance Agency of North Carolina Vice President
Inc.
IDS Insurance Agency of Ohio Inc. Vice President
IDS Insurance Agency of Wyoming Inc. Vice President
IDS Financial Services Inc. Vice President and
Assistant General Counsel
IDS Securities Services Vice President and General
Counsel
IDS Securities Corporation Director, Vice President
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Raymond E. Hirsch, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
<PAGE>
<PAGE> 14
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Kevin P. Howe, Vice President--Government and Customer Relations
IDS Financial Services Inc. Vice President-
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations
American Enterprise Investment Vice President and
Services Inc. Compliance Officer
David R. Hubers, Director; Senior Vice President--Finance, and
Chief Financial Officer
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Finance and Chief
Minneapolis, MN 55440 Financial Officer
IDS Bank & Trust Director
IDS Aircraft Services Corporation Director and Vice President
IDS Capital Holdings Inc. Director and Senior
Vice President
IDS Certificate Company Director
IDS Deposit Corp. Director
IDS Life Insurance Company Director
IDS Life Insurance Company of New York Director
IDS Property Casualty Insurance Co. Director and Chairman of
the Board
Peninsular Properties, Inc. Director and Chairman of
Board
Marietta Johns, Director; Senior Vice President--ACUMA Ltd.
ACUMA Ltd. Senior Vice President
ACUMA House
The Glanty, Egham
Surrey TW 20 9 AT
UK
IDS Financial Services Inc. Senior Region Vice
President
IDS Insurance Agency of Alabama Inc. Vice President-
Southwest Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Southwest Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Southwest Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Southwest Region
IDS Insurance Agency of North Carolina Vice President-
Southwest Region
IDS Insurance Agency of Ohio Inc. Vice President-
Southwest Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Southwest Region
<PAGE>
<PAGE> 15
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Douglas R. Jordal, Vice President--Taxes
IDS Financial Services Inc. Vice President-Taxes
IDS Tower 10
Minneapolis, MN 55440
IDS Aircraft Services Corporation Vice President
Craig A. Junkins, Vice President--Financial Planning and Marketing
IDS Financial Services Inc. Vice President-Financial
IDS Tower 10 Planning and Marketing
Minneapolis, MN 55440
Susan D. Kinder, Director and Senior Vice President--Human
Resources
IDS Financial Services Inc. Director, Senior Vice
IDS Tower 10 President-Human Resources
Minneapolis, MN 55440
Richard W. Kling, Vice President--Insurance Marketing and Products
IDS Financial Services Inc. Vice President-
Insurance Marketing and
Products
IDS Insurance Agency of Alabama Inc. Director; Executive Vice
President
IDS Insurance Agency of Arkansas Inc. Director; Executive Vice
President
IDS Insurance Agency of Massachusetts Director; Executive Vice
Inc. President
IDS Insurance Agency of New Mexico Inc. Director; Executive Vice
President
IDS Insurance Agency of North Carolina Director; Executive Vice
Inc. President
IDS Insurance Agency of Ohio Inc. Director; Executive Vice
President
IDS Insurance Agency of Wyoming Inc. Director; Executive Vice
President
IDS Life Series Fund, Inc. Director
IDS Life Variable Annuity Funds A&B Member of Board of Managers
IDS Life Insurance Company Director; Executive Vice
IDS Tower 10 President-Marketing and
Minneapolis, MN 55440 Products
IDS Life Insurance Company Director
of New York
P.O. Box 5144
Albany, NY 12205
<PAGE>
<PAGE> 16
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Harold Knutson, Vice President--System Services
IDS Financial Services Inc. Vice President--
IDS Tower 10 System Services
Minneapolis, MN 55440
Paul F. Kolkman, Vice President--Corporate Actuary
IDS Financial Services Inc. Vice President-
Corporate Actuary
IDS Life Insurance Company Director; Vice President-
Finance
IDS Life Series Fund, Inc. Vice President and Chief
IDS Tower 10 Actuary
Minneapolis, MN 55440
Claire Kolmodin, Vice President--Service Quality
IDS Financial Services Inc. Vice President-
IDS Tower 10 Service Quality
Minneapolis, MN 55440
Christopher Kudrna, Vice President--Systems and Technology
Development
IDS Life Insurance Company Director; Vice President,
Systems and Technology
Development
IDS Financial Services Inc. Vice President-Systems and
IDS Tower 10 Technology Development
Minneapolis, MN 55440
Steven C. Kumagai, Director and Senior Vice President--Associate
General Sales Manager
IDS Financial Services Inc. Director; Senior Vice
IDS Tower 10 President-Associate
Minneapolis, MN 55440 General Sales Manager
Edward Labenski, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-
Senior Portfolio
Manager
IDS Advisory Group Inc. Senior Vice President
IDS Tower 10
Minneapolis, MN 55440
<PAGE>
<PAGE> 17
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Peter L. Lamaison, Vice President--IDS International Division
IDS Financial Services Inc. Vice President-
IDS International
Division
IDS Fund Management Limited Director and Chairman of
the Board
IDS International, Inc. Director; President and
IDS Tower 10 Chief Executive Officer
Minneapolis, MN 55440
Kurt A. Larson, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
Ryan R. Larson, Vice President--Annuity Product Development
IDS Financial Services Inc. Vice President-
Annuity Product
Development
IDS Life Insurance Company Vice President,
IDS Tower 10 Annuity Product
Minneapolis, MN 55440 Development
Peter A. Lefferts, Director; Senior Vice President--Banking and
Certificates
IDS Deposit Corp. Director, President
and Chief Executive Officer
IDS Bank & Trust Director, President and
Chief Executive Officer
Investors Syndicate Development Corp. Director, Chairman of the
Board and President
IDS Plan Services of California, Inc. Director
IDS Sales Support Inc. Director
IDS Certificate Company Director, Chairman of the
IDS Tower 10 Board and President
Minneapolis, MN 55440
<PAGE>
<PAGE> 18
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Douglas A. Lennick, Director; Senior Vice President and General
Sales Manager
IDS Financial Services Inc. Director; Senior Vice
IDS Tower 10 President and General Sales
Minneapolis, MN 55440 Manager
Dickson W. Lewis, Vice President--Consumer and Business Marketing
IDS Financial Services Inc. Vice President-
IDS Tower 10 Consumer and Business
Minneapolis, MN 55440 Marketing
Mary Malevich, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-
Senior Portfolio
Manager
IDS International Inc. Vice President and
Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS Tower 10
Minneapolis, MN 55440
James M. McAlear, Jr., Vice President and Senior Portfolio Manager
IDS International
IDS Fund Management Limited Director
IDS Financial Services Inc. Vice President and
Senior Portfolio
Manager, IDS
International
IDS International, Inc. Senior Vice President
IDS Tower 10
Minneapolis, MN 55440
William J. McKinney, Vice President--Field Management Support
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Management Support
Minneapolis, MN 55440
<PAGE>
<PAGE> 19
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Thomas Medcalf, Vice President--Senior Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
William C. Melton, Vice President-Chief Economist
IDS Financial Services Inc. Vice President-
IDS Tower 10 Chief Economist
Minneapolis, MN 55440
Earlon L. Milbrath, Vice President--U.K. Venture
IDS Financial Services Inc. Vice President-
IDS Tower 10 U.K. Venture
Minneapolis, MN 55440
Janis E. Miller, Vice President--Mutual Funds Products and
Marketing
IDS Financial Services Inc. Vice President-Mutual Funds
IDS Tower 10 Products and Marketing
Minneapolis, MN 55440
James A. Mitchell, Director; Senior Vice President--Insurance
Operations
American Enterprise Life Insurance Director and Chairman of
Company the Board
P.O. Box 534
Minneapolis, MN 55440
IDS Plan Services of California, Inc. Director
IDS Property Casualty Insurance Co. Director
IDS Insurance Agency of Alabama Inc. Director and President
IDS Insurance Agency of Arkansas Inc. Director and President
IDS Insurance Agency of Massachusetts Director and President
Inc.
IDS Insurance Agency of New Mexico Inc. Director and President
IDS Insurance Agency of North Carolina Director and President
Inc.
IDS Insurance Agency of Ohio Inc. Director and President
IDS Insurance Agency of Wyoming Inc. Director and President
<PAGE>
<PAGE> 20
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Life Insurance Company Director and President
IDS Tower 10
Minneapolis, MN 55440
IDS Financial Services Inc. Senior Vice President-
Insurance Operations
IDS Life Series Fund, Inc. Director and President
IDS Life Variable Annuity Funds A Member of the Board of
and B Managers, Chairman and
President
IDS Life Capital Resource Fund, Inc. Director and Executive
Vice President
IDS Life Special Income Fund, Inc. Director and Executive
Vice President
IDS Life Managed Fund, Inc. Director and Executive
Vice President
IDS Life Moneyshare Fund, Inc. Director and Executive
IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Life Insurance Company Director and Chairman
of New York of the Board
P.O. Box 5144
Albany, NY 12205
Pamela J. Moret, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
IDS Tower 10 Assistant General Counsel
Minneapolis, MN 55440
Robert J. Neis, Vice President--EDP Services
IDS Financial Services Inc. Vice President-
IDS Tower 10 EDP Services
Minneapolis, MN 55440
<PAGE>
<PAGE> 21
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Vernon F. Palen, Vice President--Rocky Mountain Region
IDS Financial Services Inc. Vice President-Rocky
IDS Tower 10 Mountain Region
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Rocky Mountain Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Rocky Mountain Region
IDS Insurance Agency of Ohio Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Rocky Mountain Region
James R. Palmer, Vice President--Insurance Operations
IDS Financial Services Inc. Vice President-
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
IDS Life Insurance Company Vice President-Taxes
George M. Perry, Vice President--Corporate Strategy and Development
IDS Financial Services Inc. Vice President-
IDS Tower 10 Corporate Strategy
Minneapolis, MN 55440 and Development
IDS Property Casualty Insurance Co. Director
IDS Insurance Agency of Alabama Inc. Director and Executive
Vice President
IDS Insurance Agency of Arkansas Inc. Director and Executive
Vice President
IDS Insurance Agency of Massachusetts Director and Executive
Inc. Vice President
IDS Insurance Agency of New Mexico Inc. Director and Executive
Inc. Vice President
IDS Insurance Agency of North Carolina Director and Executive
Inc. Vice President
IDS Insurance Agency of Ohio Inc. Director and Executive
Vice President
IDS Insurance Agency of Wyoming Inc. Director and Executive
Vice President
<PAGE>
<PAGE> 22
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Susan B. Plimpton, Vice President -- American Express Marketing
IDS Financial Services Inc. Vice President--
IDS Tower 10 American Express Marketing
Minneapolis, MN 55440
Ronald W. Powell, Vice President and Assistant General Counsel
IDS Realty Corporation Vice President and
Secretary
IDS Financial Services Inc. Vice President and
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 Leasing Corporation Vice President and
Assistant Secretary
IDS Plan Services of California, Inc. Vice President and
Assistant Secretary
IDS Realty Corporation Vice President and
Assistant Secretary
IDS Life Series Fund, Inc. Secretary
IDS Life Variable Annuity Funds Secretary
A and B
IDS Partnership Services Corporation Vice President and
IDS Tower 10 Assistant Secretary
Minneapolis, MN 55440
James M. Punch, Vice President--TransAction Services
IDS Financial Services Inc. Vice President-Trans
IDS Tower 10 Action Services
Minneapolis, MN 55440
Frederick C. Quirsfeld, Vice President--Taxable Mutual Fund
Investments
IDS Financial Services Inc. Vice President--
IDS Tower 10 Taxable Mutual Fund
Minneapolis, MN 55440 Investments
<PAGE>
<PAGE> 23
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
James D. Robinson III, Director
American Express Company Director, Chairman,
American Express Tower Chief Executive Officer
World Financial Center Chief Quality Officer
New York, New York 10285
Union Pacific Corporation Director
The Business Council of New York Director
State, Inc.
Advisory Committee for Trade Policy Chairman
and Negotiations
New York City Partnership Chairman
New York Chamber of Commerce Chairman
and Industry
The Business Round Table Co-Chairman
Board of Governors Vice Chairman
United Way of America Vice Chairman
Memorial Hospital for Cancer Member, Board of Managers
and Allied Diseases
Council on Foreign Relations Member, Board of Directors
The Brookings Institution Member, Board of Trustees
Japan Society Member, Board of Directors
American Express Bank Ltd. Director
Shearson Lehman Holdings Inc. Director
Bristol-Meyers Squibb Company Director
345 Park Avenue
New York, NY
Coca-Cola Company Director
310 North Avenue, NW
Atlanta, GA 30313
Memorial Sloane-Kettering Chairman Board of Managers
Cancer Center Chairman Board of Overseers
New York, NY
Roger B. Rogos, Vice President--Great Lakes Region
IDS Insurance Agency of Alabama Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Great Lakes Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Great Lakes Region
<PAGE>
<PAGE> 24
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Insurance Agency of Ohio Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Great Lakes Region
IDS Financial Services Inc. Vice President-Great Lakes
IDS Tower 10 Region
Minneapolis, MN 55440
ReBecca K. Roloff, Vice President--Insurance Operations
IDS Life Insurance Company Director; Executive Vice
IDS Tower 10 President-Insurance
Minneapolis, MN 55440 Operations
IDS Financial Services Inc. Vice President-Insurance
Operations
Robert A. Rudell, Vice President--Sales and Marketing, IDS
Institutional Marketing
IDS Financial Services Inc. Vice President-Sales and
IDS Tower 10 Marketing, IDS
Minneapolis, Mn 55440 Institutional Marketing
John P. Ryan, Vice President and General Auditor
IDS Financial Services Inc. Vice President and General
IDS Tower 10 Auditor
Minneapolis, MN 55440
James H. Sadlowske, Vice President--System Services
IDS Financial Services Inc. Vice President-
IDS Tower 10 System Services
Minneapolis, MN 55440
<PAGE>
<PAGE> 25
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Erven A. Samsel, Senior Region Vice President
IDS Financial Services Inc. Senior Region Vice
IDS Tower 10 President
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
New England Region
IDS Insurance Agency of Arkansas Inc. Vice President-
New England Region
IDS Insurance Agency of Massachusetts Vice President-
New England Region
IDS Insurance Agency of New Mexico Inc. Vice President-
New England Region
IDS Insurance Agency of North Carolina Vice President-
New England Region
IDS Insurance Agency of Ohio Inc. Vice President-
New England Region
IDS Insurance Agency of Wyoming Inc. Vice President-
New England Region
Carol A. Sander, Director, Senior Vice President--Communications
American Express Minnesota Foundation Director
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Communications
Minneapolis, MN 55440
R. Reed Saunders, Director; Senior Vice President-Financial
Planning and Marketing
IDS Property Casualty Insurance Co. Director
IDS Financial Services Inc. Director and Senior Vice
IDS Tower 10 President-Financial
Minneapolis, MN 55440 Planning and Marketing
Stuart A. Sedlacek, Vice President--Quantitative Investment
Management
IDS Financial Services Inc. Vice President-
IDS Tower 10 Quantitative
Minneapolis, MN 55440 Investment Management
<PAGE>
<PAGE> 26
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
F. Dale Simmons, Vice President--Senior Portfolio Manager,
Insurance Investments
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440 Insurance Investments
IDS Partnership Services Corporation Vice President
IDS Real Estate Services Inc. Vice President
IDS Realty Corporation Vice President
Peninsular Properties, Inc. Director and President
Julian W. Sloter, Vice President--Southeast Region
IDS Insurance Agency of Alabama Inc. Vice President-
Southeast Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Southeast Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Southeast Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Southeast Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Southeast Region
IDS Insurance Agency of Ohio Inc. Vice President-
Southeast Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Southeast Region
IDS Financial Services Inc. Vice President--Southeast
IDS Tower 10 Region
Minneapolis, MN 55440
William A. Smith, Director; Vice President--Finance and CFO/UK
IDS Financial Corporation Vice President-
IDS Tower 10 Finance and CFO/UK
Minneapolis, MN 55440
IDS Life Capital Resource Fund, Inc. Treasurer
IDS Life Special Income Fund, Inc. Treasurer
IDS Life Managed Fund, Inc. Treasurer
IDS Life Moneyshare Fund, Inc. Treasurer
James B. Solberg, Vice President--Advanced Financial Planning
IDS Financial Services Inc. Vice President-
IDS Tower 10 Advanced Financial Planning
Minneapolis, MN 55440
<PAGE>
<PAGE> 27
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
James W. Sowles, Vice President--Certificate Administration
IDS Financial Services Inc. Vice President-
Certificate Administration
IDS Certificate Company Vice President-
IDS Tower 10 Administration
Minneapolis, MN 55440
Bridget Sperl, Vice President--Human Resources Management Services
IDS Financial Services Inc. Vice President-Human
IDS Tower 10 Resources Management
Minneapolis, MN 55440
Jeffrey E. Stiefler, Director, President and Chief Executive
Officer
IDS Financial Services Inc. Chairman, President and
IDS Tower 10 Chief Executive Officer
Minneapolis, MN 55440
American Express Director
Minnesota Foundation
IDS Advisory Group Inc. Director
IDS Bank & Trust Director
IDS Capital Holdings Inc. Director
IDS Plan Services of California, Inc. Director and Chairman of
the Board
IDS Certificate Company Director
IDS International, Inc. Director
IDS Life Insurance Company Director and Chairman of
the Board
IDS Property and Casualty Insurance Director
Company
Lois A. Stilwell, Vice President--Sales Training and Communications
IDS Financial Services Inc. Vice President-
IDS Tower 10 Sales Training and
Minneapolis, MN 55440 Communications
<PAGE>
<PAGE> 28
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
William A. Stoltzmann, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
Assistant General Counsel
IDS Life Insurance Company Vice President, General
IDS Tower 10 Counsel and Secretary
Minneapolis, MN 55440
IDS Life Variable Annuity Funds General Counsel and
A and B Assistant Secretary
IDS Life Series Fund, Inc. General Counsel and
Assistant Secretary
American Enterprise Life Insurance Director, Vice President,
Company General Counsel
P.O. Box 534 and Secretary
Minneapolis, MN 55440
James J. Strauss, Vice President--Corporate Planning and Analysis
IDS Financial Services Inc. Vice President-
IDS Tower 10 Corporate Planning and
Minneapolis, MN 55440 Analysis
Fenton R. Talbott, Director
ACUMA Ltd. President and Chief
ACUMA House Executive Officer
The Glanty, Egham
Surrey TW 20 9 AT
UK
Neil Taylor, Vice President--National Sales/UK
IDS Financial Services Inc. Vice President - National
IDS Tower 10 Sales/UK
Minneapolis, MN 55440
<PAGE>
<PAGE> 29
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
John R. Thomas, Director; Senior Vice President--Mutual Funds
Operations
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Mutual Funds Operations
Minneapolis, MN 55440
IDS Blue Chip Advantage Fund Director
IDS Bond Fund, Inc. Director
IDS California Tax-Exempt Trust Trustee
IDS Cash Management Fund, Inc. Director
IDS Discovery Fund, Inc. Director
IDS Diversified Equity Income Fund Director
IDS Equity Plus Fund, Inc. Director
IDS Extra Income Fund, Inc. Director
IDS Federal Income Fund, Inc. Director
IDS Global Bond Fund, Inc. Director
IDS Global Growth Fund Director
IDS Growth Fund, Inc. Director
IDS High Yield Tax-Exempt Fund, Inc. Director
IDS Managed Retirement Fund, Inc. Director
IDS Market Advantage Series, Inc. Director
IDS Mutual Director
IDS New Dimensions Fund, Inc. Director
IDS Planned Investment Account Director
IDS Precious Metals Fund, Inc. Director
IDS Progressive Fund, Inc. Director
IDS Selective Fund, Inc. Director
IDS Special Tax-Exempt Series Trust Trustee
IDS Stock Fund, Inc. Director
IDS Strategy Fund, Inc. Director
IDS Tax-Exempt Bond Fund, Inc. Director
IDS Tax-Free Money Fund, Inc. Director
IDS Utilities Income Fund, Inc. Director
American Express Minnesota Foundation Director
IDS Cable Corporation Director
IDS Cable II Corporation Director
IDS Futures Corporation Director and President
IDS Futures III Corporation Director and President
IDS Management Corporation Director and President
IDS Partnership Leasing Corporation Director and President
IDS Partnership Services Corporation Director
IDS Realty Corporation Director and President
<PAGE>
<PAGE> 30
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Melinda S. Urion, Vice President--Insurance Controller
IDS Financial Corporation Vice President-Insurance
IDS Tower 10 Controller
Minneapolis, MN 55440
IDS Life Insurance Company Director, Vice President,
Controller and Treasurer
IDS Life Series Fund, Inc. Vice President and
Controller
American Enterprise Life Vice President, Controller
Insurance Company and Treasurer
Wesley W. Wadman, Vice President--Senior Portfolio Manager
IDS Fund Management Limited Director
IDS Financial Services Inc. Vice President-
Senior Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS International, Inc. Senior Vice President
IDS Tower 10
Minneapolis, MN 55440
Norman Weaver, Jr., Senior Region Vice President
IDS Financial Services Inc. Senior Region Vice
IDS Tower 10 President
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Pacific Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Pacific Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Pacific Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Pacific Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Pacific Region
IDS Insurance Agency of Ohio Inc. Vice President-
Pacific Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Pacific Region
<PAGE>
<PAGE> 31
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Michael L. Weiner, Vice President--Corporate Tax Operations
IDS Capital Holdings Inc. Vice President
IDS Financial Services Inc. Vice President-Corporate
Tax Operations
IDS Futures III Corporation Vice President, Treasurer
and Secretary
IDS Futures Brokerage Group Vice President
IDS Futures Corporation Vice President, Treasurer
IDS Tower 10 and Secretary
Minneapolis, MN 55440
William N. Westhoff, Director and Senior Vice President--Fixed
Income Management
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Fixed Income Management
Minneapolis, MN 55440
American Enterprise Life Insurance Director, Vice President-
Company Investments
Investors Syndicate Development Corp. Director, Vice President
IDS Life Insurance Company of New York Investment Officer
IDS Partnership Services Corporation Director, Vice President
IDS Property Casualty Insurance Company Vice President-Investments
IDS Real Estate Services Inc. Director, Chairman of the
Board and President
IDS Realty Corporation Director, Vice President
Edwin Wistrand, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
IDS Tower 10 Assistant General Counsel
Minneapolis, MN 55440
<PAGE>
<PAGE> 32
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Michael Woodward, Senior Region Vice President
IDS Financial Services Inc. Senior Region Vice
IDS Tower 10 President
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Atlantic Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Atlantic Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Atlantic Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Atlantic Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Atlantic Region
IDS Insurance Agency of Ohio Inc. Vice President-
Atlantic Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Atlantic Region
IDS Life Insurance Company of New York Director
<PAGE>
<PAGE> 33
Item 29. Principal Underwriters.
(a) IDS Financial Services Inc. acts as principal underwriter
for the following investment companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS
Discovery Fund, Inc.; IDS Equity Plus 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 Investor's
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. and IDS
Certificate Company.
(b) As to each director, officer or partner of the principal
underwriter:
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald G. Abrahamson Vice President- None
IDS Tower 10 Field Administration
Minneapolis, MN 55440
Jerome R. Amundson Vice President and None
IDS Tower 10 Controller-Mutual Funds
Minneapolis, MN 55440 Operations
Douglas A. Alger Vice President- None
IDS Tower 10 Compensation and Benefits
Minneapolis, MN 55440
Peter J. Anderson Senior Vice President- None
IDS Tower 10 Advisory Group and
Minneapolis, MN 55440 Equity Management
Kent L. Ashton Vice President-Group None
IDS Tower 10 Management Office,
Minneapolis, MN 55440 Banking and Certificates
Timothy V. Bechtold Vice President-Insurance None
IDS Tower 10 Product Development
Minneapolis, MN 55440
<PAGE>
<PAGE> 34
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
John D. Begley Vice President- None
Olentangy Valley Center Mid-Central Region
Suite 300
7870 Olentangy River Rd.
Columbus, OH 43235
Carl E. Beihl Vice President- None
IDS Tower 10 Strategic Planning and
Minneapolis, MN 55440 Architecture
Alan F. Bignall Vice President- None
IDS Tower 10 Financial Planning
Minneapolis, MN 55440 Systems
Brent L. Bisson Vice President- None
Seafirst Financial Northwest Region
Center, Suite 1730
601 W. Riverside Ave.
Spokane, WA 99201
Thomas J. Brakke Vice President- None
IDS Tower 10 Investment Services
Minneapolis, MN 55440 and Investment Research
Karl J. Breyer Senior Vice President None
IDS Tower 10 and Special Counsel
Minneapolis, MN 55440
John L. Burbidge Vice President- None
IDS Tower 10 Government Relations
Minneapolis, MN 55440
Harold E. Burke Vice President None
IDS Tower 10 and Assistant
Minneapolis, MN 55440 General Counsel
Orison Y. Chaffee III Vice President-Field None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James E. Choat Senior Region Vice None
Suite 124 President
6210 Campbell Rd.
Dallas, TX 75248
Kenneth J. Ciak Vice President and None
IDS Property Casualty General Manager-
1400 Lombardi Avenue IDS Property Casualty
Green Bay, WI 54304
Roger C. Corea Vice President- None
345 Woodcliff Drive Northeast Region
Fairport, NY 14450
<PAGE>
<PAGE> 35
Item 29. (continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Kevin F. Crowe Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Development
Alan R. Dakay Vice President- None
IDS Tower 10 Institutional Insurance
Minneapolis, MN 55440 Marketing
William F. Darland Vice President- None
Suite 108C South Central Region
301 Sovereign Court
Manchester, MO 63011
Michael P. Ducar Vice President- None
IDS Tower 10 Investment Services
Minneapolis, MN 55440
William H. Dudley Director, Executive Director/
IDS Tower 10 Vice President- Trustee
Minneapolis MN 55440 Investment and Brokerage
Operations
Roger S. Edgar Senior Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440
Gordon L. Eid Senior Vice President None
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Edwin W. Elder III Vice President-Operations None
IDS Property Casualty Insurance Co.
1 WEG Blvd.
DePere, WI 54115
Elizabeth A. Elder Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Mark A. Ernst Vice President- None
IDS Tower 10 Tax and Business Services
Minneapolis, MN 55440
Gordon M. Fines Vice President- None
IDS Tower 10 Mutual Fund Equity
Minneapolis MN 55440 Investments
Louis C. Fornetti Senior Vice President- None
IDS Tower 10 Corporate Controller
Minneapolis, MN 55440
<PAGE>
<PAGE> 36
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Douglas L. Forsberg Vice President- None
IDS Tower 10 Securities Services
Minneapolis, MN 55440
Robert G. Gilbert Vice President- None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden Vice President- None
IDS Tower 10 Field Compensation
Minneapolis, MN 55440 Development
Morris Goodwin Jr. Vice President and None
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Sara J. Grady Vice President-Human None
IDS Tower 10 Resources and Organization
Minneapolis, MN 55440 Development
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Robert L. Harden Vice President None
Suite 403 Mid-Atlantic Region
8500 Leesburg Pike
Vienna, VA 22180
Lorraine R. Hart Vice President- None
IDS Tower 10 Insurance Investments
Minneapolis, MN 55440
Mark S. Hays Vice President-Senior None
IDS Tower 10 Portfolio Manager, IDS
Minneapolis, MN 55440 International
Robert H. Healy Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Raymond E. Hirsch Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
<PAGE>
<PAGE> 37
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Kevin P. Howe Vice President- None
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations
David R. Hubers Senior Vice President- None
IDS Tower 10 Finance and Chief
Minneapolis, MN 55440 Financial Officer
Marietta Johns Senior Region Vice None
IDS Tower 10 President
Minneapolis, MN 55440
Douglas R. Jordal Vice President-Taxes None
IDS Tower 10
Minneapolis, MN 55440
Craig A. Junkins Vice President - Financial None
IDS Tower 10 Planning and Marketing
Minneapolis, MN 55440
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
Richard W. Kling Vice President- None
IDS Tower 10 Insurance Marketing
Minneapolis, MN 55440 and Products
Harold Knutson Vice President- None
IDS Tower 10 System Services
Minneapolis, MN 55440
Paul F. Kolkman Vice President- None
IDS Tower 10 Corporate Actuary
Minneapolis, MN 55440
Claire Kolmodin Vice President- None
IDS Tower 10 Service Quality
Minneapolis, MN 55440
Christopher Kudrna Vice President- None
IDS Tower 10 Systems and Technology
Minneapolis, MN 55440 Development
Steven C. Kumagai Director; Senior Vice None
IDS Tower 10 President- Associate
Minneapolis, MN 55440 General Sales Manager
Edward Labenski Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
<PAGE>
<PAGE> 38
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Peter L. Lamaison Vice President- None
One Broadgate IDS International
London, England Division
Kurt A. Larson Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Ryan R. Larson Vice President- None
IDS Tower 10 Annuity Product
Minneapolis, MN 55440 Development
Douglas A. Lennick Director; Senior Vice None
IDS Tower 10 President and General
Minneapolis, MN 55440 Sales Manager
Dickson W. Lewis Vice President- None
IDS Tower 10 Consumer and Business
Minneapolis, MN 55440 Marketing
Mary J. Malevich Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
James M. McAlear, Jr. Vice President and None
One Broadgate Senior Portfolio
London, England Manager-IDS
International
William J. McKinney Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Support
Thomas Medcalf Vice President- None
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
William C. Melton Vice President- None
IDS Tower 10 Chief Economist
Minneapolis, MN 55440
Earlon L. Milbrath Vice President- None
IDS Tower 10 U.K. Venture
Minneapolis, MN 55440
Janis E. Miller Vice President-Mutual None
IDS Tower 10 Funds Products and
Minneapolis, MN 55440 Marketing
James A. Mitchell Senior Vice President- None
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
<PAGE>
<PAGE> 39
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Pamela J. Moret Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Robert J. Neis Vice President- None
IDS Tower 10 EDP Services
Minneapolis, MN 55440
Vernon F. Palen Vice President-Rocky None
Suite D-222 Mountain Region
7100 E. Lincoln Drive
Scottsdale, AZ 85253
James R. Palmer Vice President- None
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
George M. Perry Vice President- None
IDS Tower 10 Corporate Strategy
Minneapolis, MN 55440 and Development
Susan B. Plimpton Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Marketing
Ronald W. Powell Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James M. Punch Vice President- None
IDS Tower 10 TransAction Services
Minneapolis, MN 55440
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
Roger B. Rogos Vice President- None
Suite 15, Parkside Place Great Lakes
945 Boardman-Canfield Rd Region
Youngstown, Ohio 44512
ReBecca K. Roloff Vice President- None
IDS Tower 10 Insurance
Minneapolis, MN 55440 Operations
Robert A. Rudell Vice President- None
IDS Tower 10 Sales and Marketing,
Minneapolis, MN 55440 IDS Institutional
Marketing
<PAGE>
<PAGE> 40
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
James H. Sadlowske Vice President- None
IDS Tower 10 System Services
Minneapolis, MN 55440
Erven A. Samsel Senior Region Vice None
45 Braintree Hill Park President
Braintree, MA 02184
Carol A. Sander Senior Vice President- None
IDS Tower 10 Communications
Minneapolis, MN 55440
R. Reed Saunders Director; Senior None
IDS Tower 10 Vice President-
Minneapolis, MN 55440 Financial Planning and
Marketing
Stuart A. Sedlacek Vice President- None
IDS Tower 10 Quantitative
Minneapolis, MN 55440 Investment Management
F. Dale Simmons Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440 Insurance Investments
Julian W. Sloter Vice President- None
9040 Roswell Rd. Southeast Region
River Ridge-Suite 600
Atlanta, GA 30350
William A. Smith Vice President- None
IDS Tower 10 Finance and CFO/UK
Minneapolis, MN 55440
James B. Solberg Vice President- None
IDS Tower 10 Advanced Financial
Minneapolis, MN 55440 Planning
James W. Sowles Vice President- None
IDS Tower 10 Certificate
Minneapolis, MN 55440 Administration
Bridget Sperl Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440 Management Services
<PAGE>
<PAGE> 41
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Jeffrey E. Stiefler Director, Chief None
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
Lois Stilwell Vice President- None
IDS Tower 10 Sales Training and
Minneapolis, MN 55440 Communications
William A. Stoltzmann Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James J. Strauss Vice President- None
IDS Tower 10 Corporate Planning
Minneapolis, MN 55440 and Analysis
Neil Taylor Vice President- None
IDS Tower 10 National Sales/UK
Minneapolis, MN 55440
John R. Thomas Senior Vice President- Director/
IDS Tower 10 Mutual Funds Operations Trustee
Minneapolis, MN 55440
Melinda S. Urion Vice President- None
IDS Tower 10 Insurance Controller
Minneapolis, MN 55440
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Norman Weaver Jr. Senior Region Vice None
Suite 215 President
1501 Westcliff Drive
Newport Beach, CA 92660
Michael L. Weiner Vice President- None
IDS Tower 10 Corporate Tax
Minneapolis, MN 55440 Operations
William N. Westhoff Senior Vice President- None
IDS Tower 10 Fixed Income Management
Minneapolis, MN 55440
Edwin Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
<PAGE>
<PAGE> 42
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Michael Woodward Senior Region Vice None
Suite 815 President
8585 Broadway
Merrillville, IN 46410
Item 29(c). Not applicable.
Item 30. Location of Accounts and Records
IDS 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>
PAGE 95
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, IDS Managed
Retirement Fund, Inc. certifies that it meets all of the
requirements for 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 26th day of January, 1994.
IDS MANAGED RETIREMENT FUND, INC.
By /s/ William R. Pearce**
William R. Pearce, President
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 26th day
of January, 1994.
Signature Capacity
/s/ William R. Pearce** President, Principal
William R. Pearce Executive Officer and
Director
/s/ Leslie L. Ogg** Treasurer, Principal
Leslie L. Ogg Financial Officer and
Principal Accounting
Officer
/s/ William H. Dudley* Director
William H. Dudley
/s/ Robert F. Froehlke* Director
Robert F. Froehlke
/s/ David R. Hubers* Director
David R. Hubers
/s/ Anne P. Jones* Director
Anne P. Jones
/s/ Donald M. Kendall* Director
Donald M. Kendall
/s/ Melvin R. Laird* Director
Melvin R. Laird
<PAGE>
PAGE 96
(Signatures continued from previous page).
/s/ Lewis W. Lehr* Director
Lewis W. Lehr
/s/ Aulana L. Peters* Director
Aulana L. Peters
/s/ Edson W. Spencer* Director
Edson W. Spencer
/s/ John R. Thomas* Director
John R. Thomas
/s/ Wheelock Whitney* Director
Wheelock Whitney
*Signed pursuant to Directors' Power of Attorney, dated October 14,
1993, filed electronically as Exhibit 17(a) to Post-Effective
Amendment No. 17 to Registration Statement No. 2-93801 by:
___________________________
Leslie L. Ogg
**Signed pursuant to Officers' Power of Attorney, dated June 1,
1993, filed electronically as Exhibit 17(b) to Post-Effective
Amendment No. 17 to Registration Statement No. 2-93801 by:
___________________________
Leslie L. Ogg
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PAGE 97
CONTENTS OF THIS
POST-EFFECTIVE AMENDMENT NO. 18
TO REGISTRATION STATEMENT NO. 2-93801
This Post-Effective Amendment comprises the following papers and
documents:
The facing sheet.
Part A.
Cross reference sheet.
The prospectus.
Part B.
Statement of Additional Information.
Financial Statements.
Part C.
Other information.
The signatures.
EXHIBIT INDEX
Exhibit b(11) Independent Auditors' Consent
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INDEPENDENT AUDITORS' CONSENT
___________________________________________________________________
The Board of Directors and Shareholders
IDS Managed Retirement Fund, Inc.:
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
Minneapolis, Minnesota
January 26, 1994
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