<PAGE>
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FINANCIAL PLANNING
IDS Managed Retirement Fund
1993 annual report
(prospectus enclosed)
(Icon of) Bird in nest
The goal of IDS Managed Retirement Fund, Inc. is to maximize total
return through a combination of growth of capital and current
income.
IDS
An American Express company
AMERICAN
EXPRESS
Distributed by IDS Financial Services Inc.
<PAGE>
PAGE 2
(Icon of) Bird in nest
Going where the action is
Today's investment marketplace is changing faster than ever. The
key is to be in the right place at the right time. Managed
Retirement Fund has that potential because it has the flexibility
to make sweeping shifts in its asset mix to take advantage of
expected trends in financial markets. While the focus historically
has been on U.S. stocks, the fund can also hold foreign stocks, as
well as domestic and foreign bonds, plus cash-equivalent
investments. For investors, such flexibility can mean opportunity.
<PAGE>
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Contents
(Icon of) One book inside of another and their both being opened
together.
The purpose of this annual report is to tell investors how the fund
performed.
The prospectus which is bound into the middle of this annual
report, describes the fund in detail.
1993 annual report
From the president 4
From the portfolio manager 4
Ten largest holdings 6
Making the most of your fund 7
Long-term performance 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 20
IDS mutual funds 24
Federal income tax information 27
1993 prospectus
The fund in brief
Goal 3p
Types of fund investments 3p
Manager and distributor 3p
Portfolio manager 3p
Sales charge and fund expenses
Sales charge 4p
Operating expenses 4p
Performance
Financial highlights 5p
Total returns 6p
Key terms 7p
How to buy, exchange or sell shares
How to buy shares 8p
How to exchange shares 10p
How to sell shares 10p
Reductions of the sales charge 14p
Waivers of the sales charge 16p
Special shareholder services
Services 17p
Quick telephone reference 17p
Distributions and taxes
Dividend and capital gain distributions 18p
Reinvestments 19p
Taxes 20p<PAGE>
PAGE 4
Investment policies
Facts about investments and their risks 23p
Valuing assets 26p
How the fund is organized
Shares 27p
Voting rights 27p
Shareholder meeting 27p
Directors and officers 27p
Investment manager and transfer agent 29p
Distributor 30p
About IDS
General information 31p
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To our shareholders
(Photo of) William R. Pearce, President of the fund
(Photo of) Rich Lazarchic, Portfolio Manager
From the president
As you read this report, you'll find it very different from those
you've received from us in the past. We've made substantial
changes in the design and organization to make the information
easier to find and understand.
The annual report and prospectus are combined into a single
document, and each provides information important to you. The
annual report gives you the fund's performance information and a
snapshot of its investments. A good place to begin is with the
portfolio manager's letter, which describes the events and
investment strategies that most influenced the fund's performance
during the year. The prospectus includes essential data such as
the fund's investment policies and service information.
In redesigning our reports, we asked IDS financial planners and
some of you for suggestions and recommendations. We believe you'll
find the results of our work worthwhile.
William R. Pearce
From the portfolio manager
A restructured portfolio, highlighted by an increase in the amount
of foreign stocks, led to a turnaround in the second half of the
fiscal year and a double-digit return for shareholders. While the
increase in net asset value was modest, a large capital gain
distribution provided a considerable benefit.
The fund got off to a good start in December, as growth stocks,
which comprised a substantial portion of the portfolio at that
time, performed exceedingly well. This upward trend continued for
several weeks, only to reverse itself in February. Especially hard
hit were growth stocks in the health-care sector, which severely
penalized the portfolio during that period.
New manager, new style
The retirement of the fund's previous portfolio manager in April
has led to changes in the portfolio's structures. Although the
fund continues to strive to provide long-term capital appreciation,
we are now taking a somewhat different investment approach. In a
word, it might be called "opportunistic." This includes more
frequent moves in and out of stock sectors, a higher percentage of
foreign stocks, more stocks of smaller companies, potentially
substantial shifts in the asset mix between stocks, bonds and cash
reserves -- in sum, making greater use of the investment
flexibility allowed by the fund's guidelines.
By the end of the period, we had finished the portfolio
restructuring process. This included replacing several growth
stocks that did well during the 1980s with ones we think are better
poised for gains in the 1990s. We substantially increased the <PAGE>
PAGE 6
number of foreign holdings, and will continue to explore foreign
opportunities in the months ahead. Furthermore, on an overall
basis, we've spread our assets among a far greater number of stocks
to reduce the effect of a potential big downturn in any individual
holding.
Turnaround begins
The restructuring began to pay off quickly, as excellent gains in
several foreign stocks, particularly those in Hong Kong and
Malaysia, propelled the portfolio forward. Here at home,
performance in the second half of the period was much more of a
mixed bag. Our holdings in the specialty chemicals, financial
services, health-care services and leisure/entertainment sectors
helped us. But those gains were somewhat offset by weakness in
other areas, such as energy and industrial machinery stocks.
Contrary to the concerns some observers have voiced regarding the
U.S. stock market in 1994, we find the environment largely
encouraging. Inflation and interest rates remain relatively low,
the economy is picking up pace and money continue to move into
stocks. Plus, we expect corporate earnings to be surprisingly
strong. That's usually a good prescription for stocks.
We think stocks of cyclical companies (those whose fortunes are
closely linked to economic activity), are poised for good
performance, and we plan to add more of them to the portfolio.
Another focus is stocks of California-based companies in the
retailing, lending and real estate sectors, all of which should
benefit from what we believe will be a stronger economy in that
state. Finally, foreign stocks still appear promising, and we are
exploring new opportunities in Korea, Taiwan, India and Latin
America. At the same time, we intend to be flexible and will
adjust the portfolio should we feel conditions warrant.
Rich Lazarchic
12-month performance
(All figures per share)
Net asset value (NAV)
Nov. 30, 1993 $12.16
Nov. 30, 1992 $11.91
Increase $ 0.25
Distributions
Dec. 1, 1992-Nov. 30, 1993
From income $ 0.33
From capital gains $ 0.66
Total distributions $ 0.99
Total return* +11.2%
*If you purchased shares in the fund during this period, your
return also would have been affected by the sales charge, as
described in the prospectus.
<PAGE>
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<TABLE>
<CAPTION>
IDS Managed Retirement Fund, Inc.
Your fund's ten largest holdings
_____________________________________________________________________________________________
Percent Value
(of fund's net assets) (as of Nov. 30, 1993)
_____________________________________________________________________________________________
<S> <C> <C>
Masco Corporation 2.03% $ 37,400,000
A diversified producer of products for the
home,ranging from faucets to furniture.
Dow Chemical 1.97 36,299,063
The largest chemical company in the United
States and the industry leader in nearly all
of its major chemicals and plastics businesses.
Cisco Systems 1.83 33,750,000
(Pie chart) A leader in the "router" segment of the
The ten networking industry. (A router is a device
holdings that allows various computers to communicate.)
listed here
make up CSX Corporation 1.69 31,125,000
17.00% of A transportation company that generates most
the fund's of its income from coal and freight-hauling
net assets by rail.
Intel 1.67 30,750,000
Designs and manufactures the microprocessor
chips used in all IBM and IBM-compatible
personal computers.
Weyerhaeuser 1.66 30,625,000
A large forest-products company that produces
commodity white papers, pulp, linerboard, boxes
and other building products.
General Electric 1.60 29,475,000
A diversified company with interests in
manufacturing, broadcasting (NBC), services
and technology.
MCI Communications 1.58 29,250,000
The second-largest carrier, with 16% of
long-distance voice and data communication
services in the United States.
MBNA 1.54 28,462,500
A national bank specializing in credit cards.
Air Products & Chemicals 1.43 26,475,000
One of the largest suppliers of industrial gas
to a wide range of users in the chemical, steel,
petroleum and electronics industries.
</TABLE> <PAGE>
PAGE 8
Making the most of your fund
Average annual total return
(as of Nov. 30, 1993)
1 year 5 years Since inception*
+5.64% +18.04% +16.62%
*Period from Jan. 23, 1985 to Nov. 30, 1993.
Build your assets systematically
To keep your assets growing steadily, one of the best ways to use
the fund is by dollar-cost averaging -- a time-tested strategy that
can make market fluctuations work for you. To dollar-cost average,
simply invest a fixed amount of money regularly. You'll
automatically buy more shares when the fund's share price is low,
fewer shares when it is high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low
(arrow in table pointing to August) and fewer shares when the per
share market price is high.
You have paid an average price of only $10.81 per share over the 10
months, while the average market price actually was $13.10.
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold
by the fund exceed losses
o you receive income when the fund's stock dividends, interest
and short-term gains exceed its expenses.<PAGE>
PAGE 9
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has brown in IDS Managed Retirement Fund
x $38,845
Average annual total return Managed
(as of Nov. 30, 1993) Retirement Fund
$30,000 Since
1 year 5 years 1/23/85
+ 5.64% +18.04% +16.62%
$20,000 x Lipper Growth & Income Fund Index
x S&P 500 Stock Index
X $9,500
'85 '86 '87 '88 '89 '90 '91 '92 '93
(footnote to table)
Assumes: o Holding period from 2/1/85 to 11/30/93. o Returns do
not reflect taxes payable on distributions. o Also see
"Performance" in the fund's current prospectus. o Reinvestment of
all income and capital gain distributions for the fund, with a
value of $15,853.
(footnote to table)
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.
(footnote to table)
Lipper Growth & Income Fund Index, published by Lipper Analytic
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.
On the chart above you can see how the fund's total return compared
to two widely cited performance indexes, the S&P 500 and the Lipper
Growth and Income Fund Index. In comparing Managed Retirement Fund
to the two indexes, you should take into account the fact that the
fund's performance reflects the maximum sales charge of 5%, while
such charges are not reflected in the performance of the indexes.
If you were actually to buy either individual stocks or growth
mutual funds, any sales charges that you pay would reduce your
total return as well.
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 10
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.
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
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<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>
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<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
(including gain of $55,002 from foreign currency transactions) (Note 3) 138,631,701
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>
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<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 14
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.
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.
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<PAGE>
PAGE 15
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.
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.
<PAGE>
PAGE 16
Notes to financial statements
IDS Managed Retirement Fund, Inc.
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.
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 17
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.
Notes to financial statements
IDS Managed Retirement Fund, Inc.
___________________________________________________________________
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 18
___________________________________________________________________
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 19
___________________________________________________________________
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 20
<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 21
<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 22
<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 23
<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 24
<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 25
<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 26
<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 27
<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 28
<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 29
<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 30
<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 31
<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 32
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conversation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Planned Investment Account
Invests in money market securities to provide maximum current
income consistent with liquidity and stability of principal of
principal, while serving as a base for systematic exchanges into
IDS fixed income and equity funds.
(icon of) stair steps
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
achieve high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to
provide high current income. Secondary objective is capital
growth.
(icon of) cornucopia
<PAGE>
PAGE 33
Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories,or the equivalent, and in
government bonds.
(icon of) greek column
IDS Strategy, Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
(icon of) chess piece
IDS Selective Fund
Invests in high quality corporate bonds and other highly-rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to
principal and interest by the U.S. government, its agencies and
instrumentalities. Seeks a high level of current income and safety
of principal consistent with its type of investments.
(icon of) federal building
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and
notes to seek a high level of current income.
(icon of) chess piece
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
<PAGE>
PAGE 34
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75 % in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
Growth and income investments
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20% of
its assets in the U.S. market.
(icon of) three flags
IDS Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the
world that offer potential for superior growth. Holding may range
from small- to large-capitalization stocks, including those of
companies involve in areas of rapid economic growth.
(icon of) chess piece
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
<PAGE>
PAGE 35
IDS Equity Plus Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by IDS research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stocks of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) chess piece
IDS mutual funds
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high
current income and, secondarily, to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
<PAGE>
PAGE 36
Growth funds
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
IDS Discovery Fund
Invests in small and medium-sized, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Strategy, Aggressive Equity Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS New Dimensions Fund
Invests primarily in companies with significant growth potential
due to superiority in technology, marketing or management. The
fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The Fund holds
stocks for the long-term with the goal of capital growth.
(icon of) shooting star
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.<PAGE>
PAGE 37
IDS Precious Metals Fund, Inc.
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your IDS personal financial planner or writing to IDS Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.
<PAGE>
PAGE 38
Federal income tax information
IDS Managed Retirement Fund, Inc.
___________________________________________________________________
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on a Form 1099-DIV, Dividends and Distributions,
last January. Dividends paid to you since the end of last year
will be reported to you on a tax statement sent next January.
Shareholders should consult a tax adviser on how to report
distributions for state and local purposes.
<TABLE>
<CAPTION>
IDS Managed Retirement Fund, Inc.
Fiscal year ended Nov. 30, 1993
Income distributions taxable as dividend income, 49.95% qualifying
for deduction by corporations.
Payable date Per share
<S> <C>
Dec. 29, 1992 $0.1927
March 29, 1993 0.0400
June 28, 1993 0.0525
Sept. 27, 1993 0.0400
Total $0.3252
Capital gain distribution
taxable as long-term capital gain.
<CAPTION>
Payable date Per share
<S> <C>
Dec. 29, 1992 $0.6648
Total distributions $0.9900
The distribution of $0.8575 per share, payable Dec. 29, 1992,
consisted of $0.0575 derived from net investment income, $0.1352
from net short-term capital gains (a total of $0.1927 taxable as
dividend income) and $0.6648 from net long-term capital gains.
/TABLE
<PAGE>
PAGE 39
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
Your IDS financial planner:
AN AMERICAN EXPRESS COMPANY
1894 IDS 1994
A CENTURY OF INVESTING IN THE FUTURE
IDS Managed Retirement Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 40
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in blue strip at the top
of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
