PAGE
IDS Managed Retirement Fund
1994 semiannual report
(icon of) bird in a nest
The goal of IDS Managed Retirement Fund, Inc. is to maximize total
return through a combination of growth of capital and current income.
Distributed by
IDS Financial Services Inc.
IDS
An American Express company
AMERICAN
EXPRESS
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(icon of) bird in a 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.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 19
Directors and officers 24
IDS mutual funds 25
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To our shareholders
(Photo of) William R. Pearce
William R. Pearce
President of the fund
(Photo of) Rich Lazarchic
Rich Lazarchic
Portfolio manager
From the president
As you read this semiannual report, you'll find that it complements
the newly designed annual report you received six months ago. We hope
the substantial changes we've made to the design and organization
will help make information easier to find and understand.
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 past period. For a broader financial
perspective, please consult your IDS planner, who can help you make
sure your investment and protection strategies continue to meet the
objectives in your financial plan.
William R. Pearce
From the portfolio manager
An especially strong performance late last year allowed IDS Managed
Retirement Fund to weather a market downturn in the spring and produce
an overall gain for the first half of the fiscal year.
The period got off to a spectacular start, as low interest rates and
an improving economy in the United States buoyed the stock market. The
fund truly capitalized on the situation; while the overall stock
market, as measured by the Standard & Poor's 500 Stock Index (an
unmanaged list of common stocks), was up 1.2% in December (the opening
month of the period), the fund generated nearly a 5% gain.
Cyclicals, foreigns shine
Our holdings among cyclical stocks, those of companies whose fortunes
are closely tied to economic trends, led the way for us. Stocks such
as General Electric, Dow Chemical and Oregon Steel were among the
pacesetters. A relatively new investment theme in the portfolio --
stocks of certain California-based companies -- paid off well, as
those companies are benefiting from an economic recovery in that
state.
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To our shareholders (continued)
But the biggest boost to performance came from our holdings
in countries such as Hong Kong, Malaysia, Singapore and Mexico, where
stocks soared. We had about a quarter of our assets invested in
foreign markets. Although most foreign markets cooled off soon in
1994, the fund continued to advance nicely (close to 3%) in January.
The environment changed quickly in early February, however, as the
Federal Reserve began raising interest rates to temper the rapidly
growing economy and head off a potential upswing in the inflation
rate. The U.S. stock market reacted negatively to the Fed's action
and, fostered by additional rate increases during the spring, went
into a sustained retreat.
Many foreign markets followed suit, although some of them had already
begun to decline as a result of professional investors' desire to lock
in their previous gains by selling some of their foreign holdings. We
did some of the same, but all in all, from February through April, the
fund gave back a good portion of the appreciation it had earned both
here and abroad in the three previous months.
Time to buy
Of course, the positive side of a market downturn is that it creates
new buying opportunities. In recent months, we took advantage of what
appear to be bargain prices on several stocks with good long-term
potential, selectively adding names to the portfolio. While we're
still holding to our position among domestic cyclical stocks, we also
may add some stocks of food, beverage and health-care companies that
have languished in recent years but appear ready to advance. On the
foreign front, we remain optimistic about many markets and have added
a few more stocks to the portfolio from countries such as Mexico and
Argentina.
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To our shareholders (continued)
But the biggest influence on the fund's performance in the ensuing
months will be the direction of the U.S. stock market. While there are
conflicting opinions on the market's direction, we're optimistic. With
ongoing low inflation and, we believe, the bulk of the interest-rate
rise behind us, we expect a more profitable period ahead for U.S.
stocks.
Rich Lazarchic
6-month performance
(All figures per share)
Net asset value (NAV)
May 31, 1994 $11.41
Nov. 30, 1993 $12.16
Decrease ($0.75)
Distributions
Dec. 1, 1993 - May 31, 1994
From income $0.21
From capital gains $0.75
Total distributions $0.96
Total return* +1.52%
*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.
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<TABLE>
<CAPTION>
IDS Managed Retirement Fund, Inc.
(Pie chart) The ten holdings listed here make up 16.00% of the fund's net assets
Your fund's ten largest holdings
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets) (as of May 31, 1994)
____________________________________________________________________________________
<S> <C> <C>
Dow Chemical 2.13% $ 44,362,500
The largest chemical company in the United States
and the industry leader in nearly all major chemicals
and plastics business.
Intel 1.80 37,500,000
Designs and maufactures the microprocessor chips used
in all IBM and IBM-compatible personal computers.
MBNA 1.71 35,606,250
A national bank specializing in credit cards.
Federal National Mortgage Association 1.60 33,400,000
Created by Congress as a government agency to create
a viable secondary mortgage market. The company holds
a large portfolio of mortgages for itself and
securitizes the balance, which it sells to investors.
Microsoft 1.55 32,250,000
Microsoft has a leading franchise in microcomputer
operating systems, DOS, Windows and Windows NT.
Pfizer 1.53 31,875,000
A leading producer of pharmaceuticals, hospital
products, animal health items, non prescription
medications and specialty chemicals.
Masco corporation 1.46 30,387,500
A diversified producer of products for the home,
ranging from faucets to furniture.
Cisco Systems 1.42 29,700,000
A leader in the "router" segment of the networking
industry. (A router is a device that allows various
computers to communicate.)
Weyerhaeuser 1.40 29,137,500
A large forest-products company that produces commodity
white papers, pulp, liner board, boxes and other
building products.
BankAmerica 1.40 29,100,000
A holding company that owns Bank of America (one of the
world's largest banks) and Seattle-First National Bank.
/TABLE
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<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Managed Retirement Fund, Inc.
May 31, 1994
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
(Unaudited)
Investments in securities, at value (Note 1)
Investments in securities of unaffliated issuers
(identified cost $1,876,775,078) $2,116,876,303
Investments in securities of affliated issuer (identified cost $6,108,130) 7,687,500
______________
Total investments in securities (identified cost $1,882,883,208) 2,124,563,803
Receivable for investment securities sold 30,735,530
Dividends and accrued interest receivable 5,924,907
Receivable for foreign currency contracts held, at value (Notes 1 and 4) 2,843,631
U.S. government securities held as collateral (Note 5) 67,079,273
_____________________________________________________________________________________________________________
Total assets 2,231,147,144
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 6,388,524
Payable for investment securities purchased 43,403,814
Payable for foreign currency contracts held, at value (Notes 1 and 4) 2,833,969
Payable upon return of securities loaned (Note 5) 94,155,273
Accrued investment management and services fee 982,658
Accrued distribution fee 116,234
Accrued transfer agency fee 290,227
Other accrued expenses 350,330
_____________________________________________________________________________________________________________
Total liabilities 148,521,029
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $2,082,626,115
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 182,486,749 shares $ 1,824,867
Additional paid-in capital 1,744,050,671
Undistributed net investment income 4,425,085
Accumulated net realized gain (Note 1) 90,635,235
Unrealized appreciation (Note 4) 241,690,257
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $2,082,626,115
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 11.41
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.<PAGE>
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Financial statements
Statement of operations
IDS Managed Retirement Fund, Inc.
Six months ended May 31, 1994
_____________________________________________________________________________________________________________
<CAPTION>
Investment income
_____________________________________________________________________________________________________________
<S> <C>
(Unaudited)
Income:
Dividends (net of foreign taxes withheld of $226,829) $14,815,525
Interest 4,223,829
_____________________________________________________________________________________________________________
Total income 19,039,354
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 5,377,426
Distribution fee 620,053
Transfer agency fee 1,543,046
Compensation of directors 23,018
Compensation of officers 9,216
Custodian fees 125,799
Postage 130,571
Registration fees 118,651
Reports to shareholders 29,865
Audit fees 15,000
Administrative 13,630
Other 26,723
_____________________________________________________________________________________________________________
Total expenses 8,032,998
_____________________________________________________________________________________________________________
Investment income -- net 11,006,356
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including loss of $488 from foreign currency transactions) (Note 3) 90,471,735
Net realized gain on closed stock index futures contracts 242,740
_____________________________________________________________________________________________________________
Net realized gains on investments 90,714,475
Net change in unrealized appreciation or depreciation (75,816,863)
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 14,897,612
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $25,903,968
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.<PAGE>
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Financial statements
Statements of changes in net assets
IDS Managed Retirement Fund, Inc.
_____________________________________________________________________________________________________________
<CAPTION>
Operations and distributions May 31, 1994 Nov. 30, 1993
_____________________________________________________________________________________________________________
<S> <C> <C>
Six months ended Year ended
(Unaudited)
Investment income -- net $ 11,006,356 $ 23,878,221
Net realized gain on investments and foreign currency 90,714,475 138,631,701
Net change in unrealized appreciation or depreciation (75,816,863) 11,572,135
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 25,903,968 174,082,057
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (9,761,792) (25,829,748)
Net realized gains on investments (137,757,653) (97,315,857)
Excess distribution of realized gain (Note 1) -- (55,002)
_____________________________________________________________________________________________________________
Total distributions (147,519,445) (123,200,607)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
26,297,509 and 33,898,181 shares (Note 2) 306,232,634 394,118,183
Net asset value of 12,433,215 and 10,877,169 shares
issued in reinvestment of distributions 146,664,424 122,472,864
Payments for redemptions of
7,994,919 and 12,690,556 shares (93,423,260) (147,340,355)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
30,735,805 and 32,084,794 shares 359,473,798 369,250,692
_____________________________________________________________________________________________________________
Total increase in net assets 237,858,321 420,132,142
_____________________________________________________________________________________________________________
Net assets at beginning of period 1,844,767,794 1,424,635,652
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$4,425,085 and $3,180,521) $2,082,626,115 $1,844,767,794
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
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Notes to financial statements
IDS Managed Retirement Fund, Inc.
(Unaudited as to May 31, 1994)
______________________________________________________________________________
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.
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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
or write options traded on any U.S. or foreign
exchange or in the over-the-counter market where the
completion of the obligation is dependent upon the
credit standing of the other party. The fund also 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.
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.
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Notes to financial statements
IDS Managed Retirement Fund, Inc.
______________________________________________________________________________
1. Summary of significant accounting policies
Futures transactions
In order to gain exposure to or protect itself from
changes in the market, the fund may buy and sell
stock index futures contracts traded on any U.S. or
foreign exchange. The fund also may buy or write put
and call options on these futures contracts. Risks of
entering into futures contracts and related options
include the possibilitiy that there may be an
illiquid market and that a change in the value of the
contract or option may no correlate with changes in
the value of the underlying securities.
Upon entering into a futures contract, the fund is
required to deposit either cash or securities in an
amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation
margin) are made or received by the fund each day.
The variation margin payments are equal to the daily
changes in the contract value and are recorded as
unrealized gains and losses. The fund recognizes a
realized gain or loss when the contract is closed or
expires.
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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.
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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.
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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 increased the fee by $60,000 for the six
months ended May 31, 1994.
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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 $6,849,704 for the six
months ended May 31, 1994. The fund also pays
custodian fees to IDS Trust Company, 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 $9,318 for
the six months ended May 31, 1994.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of
securities (other than short-term obligations)
aggregated $618,658,883 and $485,047,286,
respectively, for the six months ended May 31, 1994.
Realized gains and losses are determined on an
identified cost basis.
Brokerage commissions paid to brokers affiliated with
IDS were $157,867 for the six months ended May 31,
1994.
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Notes to financial statements
IDS Managed Retirement Fund, Inc.
______________________________________________________________________________
4. Foreign currency contracts
At May 31, 1994, the fund had entered into five
foreign currency exchange contracts that obligate the
fund to deliver currencies at specified future dates.
The unrealized appreciation of $9,662 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 May 31, 1994 received May 31, 1994
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
June 1, 1994 27,071 $ 27,071 132,001 $ 27,848
U.S. Dollar South African Rand
June 1, 1994 401,175 401,175 1,953,720 412,176
U.S. Dollar South African Rand
June 3, 1994 473,213 473,213 804,115 478,247
U.S. Dollar New Zealand Dollar
June 7, 1994 678,941 678,941 1,141,077 678,656
U.S. Dollar New Zealand Dollar
June 14, 1994 1,253,569 1,253,569 1,725,750 1,246,704
U.S. Dollar __________ Canadian Dollar __________
$2,833,969 $2,843,631
</TABLE>
______________________________________________________________________________
5. Lending of portfolio securities
At May 31, 1994, securities valued at $90,975,542
were on loan to brokers. For collateral, the fund
received $27,076,000 in cash and U.S. government
securities valued at $67,079,273. Income from
securities lending amounted to $173,436 for the six
months ended May 31, 1994. 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.
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<TABLE>
<CAPTION>
Notes to financial statements
IDS Managed Retirement Fund, Inc.
_________________________________________________________________________
6. Financial highlights
The table below shows certain important
financial information for evaluating the
fund's results.
Fiscal period ended Nov. 30,
Per share income and capital changes*
1994** 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C>
Net asset value $12.16 $11.91 $11.08 $ 9.01 $10.05 $ 7.48
beginning of period
Income from investment operations:
Net investment income .06 .17 .21 .20 .27 .26
Net gains (losses) on .15 1.07 2.04 2.45 (.39) 2.51
securities (both realized
and unrealized)
Total from investment .21 1.24 2.25 2.65 (.12) 2.77
operations
Less distributions:
Dividends from net (.06) (.19) (.21) (.27) (.25) (.20)
investment income
Distributions from (.90) (.80) (1.20) (.31) (.67) --
realized gains
Excess distributions
of realized gains -- -- (.01) -- -- --
Total distributions (.96) (.99) (1.42) (.58) (.92) (.20)
Net asset value, $11.41 $12.16 $11.91 $11.08 $ 9.01 $10.05
end of period
Ratios/supplemental data
1994** 1993 1992 1991 1990 1989
Net assets, end of period $2,083 $1,845 $1,425 $1,007 $715 $700
(in millions)
Ratio of expenses to .81%*** .83% .85% .90% .90% .92%
average daily net assets
Ratio of net income to 1.11%*** 1.46% 1.94% 1.98% 2.94% 2.82%
average daily net assets
Portfolio turnover rate 26% 61% 46% 81% 78% 73%
(excluding short-term
securities)
Total return+ 1.5%++ 11.2% 22.3% 30.9% (1.2%) 37.3%
*For a share outstanding throughout the period.
Rounded to the nearest cent.
**Six months ended May 31, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended May 31, 1994, the annualized
total return is 3.1%.
</TABLE>
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<TABLE>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
<CAPTION>
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (89.2%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Automotive & related (1.0%)
Automotive Inds 500,000 (b) $ 13,250,000
Hayes Wheels Intl 250,000 6,718,750
______________
Total 19,968,750
_____________________________________________________________________________________________________________________________
Banks and savings & loans (0.9%)
First Amer 100,000 3,925,000
NationsBank 250,000 13,843,750
______________
Total 17,768,750
_____________________________________________________________________________________________________________________________
Building materials (4.4%)
C Brewer Homes 250,000 (b) 2,500,000
Ferro 250,000 7,031,250
Georgia Pacific 200,000 12,900,000
Kaufman & Broad Home 300,000 4,875,000
Martin Marietta 200,000 (b) 3,875,000
Masco 1,100,000 30,387,500
Weyerhaeuser 700,000 29,137,500
______________
Total 90,706,250
_____________________________________________________________________________________________________________________________
Chemicals (6.0%)
Air Products & Chemicals 600,000 25,350,000
Crompton & Knowles 600,000 10,950,000
Dow Chemical 650,000 (c) 44,362,500
Great Lakes Chemical 500,000 27,562,500
Lyondell Petrochem 300,000 7,800,000
Rohm & Haas 150,000 9,131,250
______________
Total 125,156,250
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
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Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Communications equipment (3.3%)
Airtouch Communications 700,000 (b) $ 17,062,500
Alltell 700,000 18,287,500
Raychem 300,000 11,062,500
Scientific Atlanta 500,000 18,687,500
SynOptics Communications 225,000 (b,c) 4,626,562
______________
Total 69,726,562
_____________________________________________________________________________________________________________________________
Computers & office equipment (4.5%)
Cisco Systems 1,200,000 (b) 29,700,000
Microsoft 600,000 (b,c) 32,250,000
Novell 500,000 (b) 8,875,000
Pitney Bowes 600,000 23,475,000
______________
Total 94,300,000
_____________________________________________________________________________________________________________________________
Electronics (3.4%)
Amphenol 250,000 (b) 4,250,000
Intel 600,000 37,500,000
Motorola 400,000 18,700,000
Vishay Intertechnology 297,760 (b) 11,017,120
______________
Total 71,467,120
_____________________________________________________________________________________________________________________________
Energy (3.3%)
Amoco 250,000 14,718,750
Cross Timber 175,000 2,625,000
Devon Energy 240,000 5,100,000
Enron 500,000 15,250,000
HS Resources 530,000 (b) 10,467,500
Occidental Petroleum 1,100,000 (c) 21,312,500
______________
Total 69,473,750
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Financial services (5.9%)
BankAmerica 600,000 (c) $ 29,100,000
Federal Natl Mtge 400,000 33,400,000
MBNA 1,350,000 35,606,250
State Street Boston 450,000 18,253,125
TIG Holdings 350,000 7,131,250
______________
Total 123,490,625
_____________________________________________________________________________________________________________________________
Furniture & appliances (0.2%)
Black & Decker 250,000 4,625,000
_____________________________________________________________________________________________________________________________
Health care (11.4%)
Abbott Laboratories 450,000 13,443,750
Amgen 500,000 (b) 23,281,250
Bergen Brunswig Cl A 134,600 2,389,150
Bristol-Myers Squibb 300,000 16,387,500
Colgate-Palmolive 450,000 25,762,500
Dentsply Intl 150,000 (b) 5,615,625
Genzyme 225,000 (b) 6,412,500
Johnson & Johnson 250,000 11,062,500
Medtronic 200,000 16,450,000
Merck 300,000 9,150,000
Pfizer 500,000 31,875,000
Schering-Plough 300,000 19,575,000
United Healthcare 600,000 28,875,000
U.S. HealthCare 475,000 19,118,750
Warner-Lambert 125,000 8,796,875
______________
Total 238,195,400
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.9%)
General Signal 180,000 5,535,000
Illinois Tool Works 300,000 12,225,000
______________
Total 17,760,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Industrial transportation (3.1%)
CSX 375,000 $ 28,687,500
Motor Coach Ind. 500,000 6,312,500
Southwest Airlines 750,000 20,906,250
Union Pacific 150,000 8,850,000
______________
Total 64,756,250
_____________________________________________________________________________________________________________________________
Insurance (1.1%)
EW Blanch 600,000 12,075,000
Financial Security Assurance Holdings 151,000 (b,c) 3,076,625
Tempest Reinsurance Private 80,000 (b) 7,549,840
______________
Total 22,701,465
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (2.6%)
Bally Gaming Intl 500,000 (b) 7,062,500
Blockbuster Entertainment 750,000 21,187,500
Caesars World 200,000 (b) 7,825,000
Intl Game Technology 800,000 (c) 17,700,000
______________
Total 53,775,000
_____________________________________________________________________________________________________________________________
Media (0.7%)
Time Warner 400,000 15,500,000
_____________________________________________________________________________________________________________________________
Metals (0.8%)
Magma Copper Cl B 400,000 (b,c) 6,450,000
Reynolds Metals 200,000 9,175,000
______________
Total 15,625,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (3.0%)
Emerson Electric 350,000 $ 21,350,000
General Electric 500,000 24,812,500
ITT 200,000 16,700,000
______________
Total 62,862,500
_____________________________________________________________________________________________________________________________
Natural gas (0.4%)
Equitable Resources 250,000 8,593,750
_____________________________________________________________________________________________________________________________
Paper & Packaging (0.7%)
Jefferson Smurfit 770,000 (b) 10,780,000
Rayonier 37,500 1,054,688
______________
Total 11,834,688
_____________________________________________________________________________________________________________________________
Retail (6.2%)
Carter Hawley Hale 1,929,900 (b,c) 18,816,525
Dayton Hudson 124,800 (c) 9,812,400
Dillard Dept Store Cl A 350,000 10,850,000
Duracell Intl 600,000 25,275,000
Federated Dept Stores 400,000 (b) 8,750,000
Home Depot 350,000 15,793,750
Limited 600,000 10,575,000
Nordstrom 400,000 17,650,000
Office Depot 300,000 (b) 11,212,500
______________
Total 128,735,175
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Utilities-telephone (2.9%)
IDB Communications 400,000 (b) $ 5,800,000
McCaw Cellular Cl A 400,000 (b) 20,600,000
MCI Communications 1,200,000 28,800,000
Pacific Telesis 200,000 6,075,000
______________
Total 61,275,000
_____________________________________________________________________________________________________________________________
Foreign (22.5%)(d)
Argentina (1.0%)
Telecom Argentina 155,000 (b,c,e) 10,036,250
YPF 400,000 10,550,000
______________
Total 20,586,250
_____________________________________________________________________________________________________________________________
Australia (0.6%)
Burswood Property 5,000,000 6,275,000
James Hardie 3,000,000 (b) 5,427,000
______________
Total 11,702,000
_____________________________________________________________________________________________________________________________
Austria (0.2%)
Wienerberger Baust 15,000 4,527,555
_____________________________________________________________________________________________________________________________
Bermuda (0.6%)
ACE Limited 350,000 9,537,500
PT Smart 1,400,000 2,392,600
______________
Total 11,930,100
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Canada (2.7%)
Magna Intl Cl A 75,000 $ 3,328,125
Renaissance Energy 104,800 (b) 2,365,902
Renaissance Energy 167,500 (b,e) 3,781,380
Sceptre Resources 1,000,000 (b) 9,571,970
Singer 350,000 12,118,750
Tarragon Oil & Gas 500,000 (b) 6,862,920
Westcoast Energy 1,000,000 17,375,000
______________
Total 55,404,047
_____________________________________________________________________________________________________________________________
Chile (0.2%)
Masisa 150,000 (c) 4,125,000
_____________________________________________________________________________________________________________________________
Denmark (0.6%)
Tele Danmark ADR 525,000 (b) 13,125,000
_____________________________________________________________________________________________________________________________
France (0.5%)
Michelin Cl B 285,000 11,142,360
_____________________________________________________________________________________________________________________________
Hong Kong (1.7%)
China Strategic 6,000,000 3,120,000
Dao Heng Holdings 2,800,000 (b) 8,696,800
Ek Chor China Motorcycle 108,000 2,605,500
Hong Leong Credit 1,666,666 9,238,330
Hong Leong Property 3,000,000 3,930,000
Luks Inds 25,000,000 5,250,000
Tian An China 11,000,000 2,838,000
______________
Total 35,678,630
_____________________________________________________________________________________________________________________________
India (0.1%)
Mahindra & Mahindra 299,780 (b) 2,811,936
_____________________________________________________________________________________________________________________________
Indonesia (0.1%)
Banking Intl 600,000 (b) 1,482,600
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Israel (0.5%)
Ayala Cl B 4,784,160 $ 5,956,279
Intl Container Service 4,550,000 4,650,100
______________
Total 10,606,379
_____________________________________________________________________________________________________________________________
Malaysia (2.8%)
Aokam Perdana Berhad 1,715,000 12,763,030
Berjaya Sports Toto 1,000,000 1,604,000
Granite Inds 1,500,000 (b) 2,674,500
Hume 4,000,000 14,804,000
Idris Hydraulic 3,500,000 (b) 5,859,000
Kian Joo Can 1,000,000 4,070,000
Malaysian Resources 5,500,000 10,103,500
MBF Capital Berhad 4,500,000 3,991,500
Multi-Purpose Holding 2,300,000 3,190,100
______________
Total 59,059,630
_____________________________________________________________________________________________________________________________
Mexico (4.0%)
Banacci Cl L 448,000 3,090,304
Empressa La Moderna 300,000 8,475,000
Femsa Coke 275,000 (c) 8,559,375
Grupo Embotellador de Mexico 300,000 (b) 8,625,000
Grupo Financial Banamex 775,000 5,788,475
Grupo Financial Bancomer 4,500,000 6,691,500
Grupo Televisa ADR 400,000 (e) 23,100,000
Telefonos de Mexico ADR 300,000 18,637,500
______________
Total 82,967,154
_____________________________________________________________________________________________________________________________
New Zealand (0.4%)
Carter Holt Harvey 4,000,000 9,252,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Singapore (1.4%)
Fraser & Neave 500,000 $ 5,997,000
Hotel Properties 7,000,000 (b) 10,080,000
Hotel Properties 3,400,000 (b) 1,992,400
Sungei Way Holdings 750,000 3,604,500
United Overseas 1,000,000 8,148,000
______________
Total 29,821,900
_____________________________________________________________________________________________________________________________
South Africa (1.9%)
Anglovaal Ind. 100,000 (b) 4,852,300
Barlow Road 800,000 6,303,200
DeBeers Consolidated Mines 125,000 2,640,625
Iscor 10,000,000 7,060,000
Murray & Roberts 250,000 5,168,750
Safmarine & Rennies 250,000 6,856,500
Sappi Ltd 600,000 5,727,600
______________
Total 38,608,975
_____________________________________________________________________________________________________________________________
South Korea (0.2%)
Korea Electric Power 150,000 5,118,450
_____________________________________________________________________________________________________________________________
Spain (0.8%)
Repsol S.A. ADR 500,000 15,937,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Sweden (1.2%)
Celsius Ind. 350,000 $ 8,922,900
Ericsson LM ADR 9,260,870 16,206,522
______________
Total 25,129,422
_____________________________________________________________________________________________________________________________
United Kingdom (1.0%)
Bush Boake Allen 300,000 (b) 4,725,000
Enterprise Oil ADR 900,000 (c) 16,425,000
______________
Total 21,150,000
_____________________________________________________________________________________________________________________________
Total common stocks of unaffiliated issuers
(Cost: $1,619,290,191) $1,858,464,173
_____________________________________________________________________________________________________________________________
<CAPTION>
Preferred stocks & other (1.0%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Equitable
6% Cv 270,000 (e) $ 14,107,500
Hong Leong Credit
Rights 208,333 (d) 347,229
LSB Inds
3.25% Cv 100,000 4,625,000
Luks Ind
Warrants 2,400,000 (d) 172,800
Tian An China
Warrants 2,600,000 (d) 176,800
United Overseas
Rights 100,000 546,284
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $18,500,005) $ 19,975,613
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
<CAPTION>
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Bonds (2.7%)
_____________________________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
_____________________________________________________________________________________________________________________________
<S> <C> <C>
U.S. government obligation (1.2%)
U.S. Treasury
8.25% 1994 $25,000,000 (c) $ 25,377,997
_____________________________________________________________________________________________________________________________
Domestic (0.9%)
Costco Wholesale
5.75% Cv Bond 2002 15,000,000 12,825,000
Medical Care Intl
6.75% Bond 2006 6,500,000 (e) 5,850,000
______________
Total 18,675,000
_____________________________________________________________________________________________________________________________
Foreign (0.6%)(d)
Banco Nacional de Mexico
7% Cv Bond 1999 $10,000,000 (e) 11,600,000
Michelin France
2.50% Bond 2001 2,000,000 927,560
______________
Total 12,527,560
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $57,127,087) $ 56,580,557
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
<CAPTION>
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Short-term securities (8.7%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.3%)
Federal Natl Mtge Assn
Corp Disc Nt
06-13-94 4.22% $ 6,000,000 $ 5,991,600
_____________________________________________________________________________________________________________________________
Certificates of deposit (0.5%)
Harris Trust
06-07-94 3.75 5,700,000 5,700,000
Natl Bank Detroit
06-23-94 4.26 5,000,000 5,000,000
______________
Total 10,700,000
_____________________________________________________________________________________________________________________________
Commercial paper (7.9%)
ABB Treasury
06-15-94 4.29 6,100,000 (f) 6,089,871
AI Credit
07-21-94 4.38 5,000,000 4,968,124
Amer General
06-10-94 3.76 3,000,000 2,997,036
AT&T Capital
06-20-94 4.05 2,400,000 2,394,895
Bell Atlantic
Network Funding
06-13-94 3.80 6,800,000 6,791,432
Beneficial
06-16-94 4.30 5,300,000 5,290,548
Campbell Soup
06-08-94 4.34 8,000,000 (f) 7,993,272
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Commercial paper (cont'd)
Cooper Inds
06-14-94 4.29% $ 4,700,000 $ 4,692,736
Eiger Capital
06-17-94 4.27 4,800,000 (f) 4,790,933
06-29-94 4.27 5,500,000 (f) 5,481,819
Gateway Fuel
06-02-94 3.86 8,210,000 8,209,122
Gillette
06-01-94 4.25 7,700,000 (f) 7,700,000
Goldman Sachs Group
07-11-94 4.37 8,100,000 8,060,850
Heinz (HJ)
07-19-94 4.37 6,300,000 6,263,544
Metlife Funding
06-23-94 4.25 4,300,000 4,288,885
Motorola
06-20-94 4.29 5,057,000 5,045,577
Pacific G&E
07-20-94 4.40 6,700,000 6,660,148
Paribas Finance
07-01-94 4.27 4,900,000 4,882,646
Penney (JC) Funding
06-06-94 3.94 6,150,000 6,146,652
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Commercial paper (cont'd)
PepsiCo
06-02-94 3.84% $10,600,000 $ 10,598,872
06-07-94 3.88 7,800,000 7,794,982
06-23-94 4.26 4,500,000 4,488,312
Pitney Bowes Credit
06-03-94 3.82 6,400,000 6,398,649
Rohm & Haas Finance
06-06-94 4.35 5,800,000 5,796,512
St. Paul Companies
06-22-94 4.30 5,200,000 (f) 5,187,017
Sara Lee
07-21-94 4.38 5,400,000 5,367,375
Southern Calif Gas
06-09-94 4.32 6,500,000 (f) 6,493,789
Sysco
06-28-94 4.32 2,500,000 (f) 2,491,938
USAA Capital
06-07-94 3.94 1,800,000 1,798,824
______________
Total 165,164,360
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $181,857,795) $ 181,855,960
_____________________________________________________________________________________________________________________________
Total investments in securities of unaffiliated issuers
(Cost: $1,876,775,078) $2,116,876,303
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
May 31, 1994 (Unaudited) investments compared to net assets)
<CAPTION>
Investments in securities of affiliated issuer (g)
_____________________________________________________________________________________________________________________________
Common stock (0.7%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Sybron Chemicals 300,000 (b) $ 7,687,500
_____________________________________________________________________________________________________________________________
Total investments in securities of affiliated issuer
(Cost: $6,108,130) $ 7,687,500
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,882,883,208)(h) $2,124,563,803
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
IDS Managed Retirement Fund, Inc.
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
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) 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.
(g) Investments representing 5% or more of the outstanding voting
securities of the issuer.
(h) At May 31, 1994, the cost of securities for federal income tax
purposes was approximately $1,882,831,000 and the approximate
aggregate gross unrealized appreciation and depreciation based on
that cost was:
Unrealized appreciation $318,197,000
Unrealized depreciation (76,464,000)
_____________________________________________________________
Net unrealized appreciation $241,733,000
_____________________________________________________________
/TABLE
<PAGE>
PAGE
Directors and officers
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
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
_____________________________________________________________________
Interested director who is a partner in a law firm that has
represented an IDS subsidiary
Anne P. Jones
Partner, law firm of Sutherland, Asbill & Brennan.
_____________________________________________________________________
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.<PAGE>
PAGE
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposit (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income.
Secondary objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia<PAGE>
PAGE
IDS mutual funds (continued)
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher rated,
lower risk bond categories, or the equivalent, and in government bonds.
(icon of) greek column
IDS 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 the timely
payment of principal and interest by the U.S. government, its agencies
and instrumentalities. Seeks a high level of current income and
safety of principal consistent with its type of investments.
(icon of) federal building
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
IDS mutual funds (continued)
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. Holdings may range from
small- to large-capitalization stocks, including those of companies
involved in areas of rapid economic growth.
(icon of) chess piece
<PAGE>
PAGE
IDS mutual funds (continued)
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income
investments and money market securities to seek a maximum total
return through a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity 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.
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IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
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IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
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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.
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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.
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IDS mutual funds (continued)
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.
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Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
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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.
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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.
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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.
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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.
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IDS mutual funds (continued)
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
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Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic companies
that explore for, mine and process or distribute gold and other
precious metals. This is the most aggressive and most speculative
IDS mutual fund.
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For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your 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.
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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 (TouchTone phones only), including current
fund prices and performance, account values and recent account
transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
Your IDS financial planner
AN AMERICAN EXPRESS COMPANY
1894 IDS 1994
A CENTURY OF INVESTING IN THE FUTURE
IDS Managed Retirement Fund, Inc.
IDS Tower 10
Minneapolis, MN 55440-0010
