<PAGE>
PAGE 1
IDS Managed Retirement Fund
1994 annual report
(icon of) bird on 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 American Express Financial Advisors Inc.<PAGE>
PAGE 2
(Icon of) Bird on nest
Going where the action is
Today's investment marketplace is changing faster than ever. Thje
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>
PAGE 3
Contents
The purpose of this annual report is to tell investors how the fund
performed.
1994 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 22
IDS mutual funds 28
Federal income tax information 31<PAGE>
PAGE 4
To our shareholders
William R. Pearce
President of the fund
Rich Lazarchic
Portfolio manager
From the president
All of the funds in the ids mutual fund group held shareholder
meetings on Nov. 9, 1994. The meetings, which were well-attended,
approved all of the proposals advanced by management. Among the
proposals were:
o The election of directors and the selection of KPMG Peat
Marwick LLP as independent auditors for each of the funds in the
group.
o A new investment management agreement that will become
effective for each fund when it begins offering multiple classes of
shares, now planned to occur in March, 1995.
o A change in investment policy that will permit the funds
to adopt a master/feeder structure if and when the board of each
fund determines that it is in the best interest of the
shareholders.
o And, finally, changes to the funds' "fundamental
investment policies" that, among other things, allow the board to
modify them should it deem appropriate.
No other business was presented at the meeting, which was concluded
by a report to shareholders from the IDS Investment Department.
Thanks to all of you for your effort in reviewing the proxy
material and voting your proxies.
William R. Pearce
From the portfolio manager
The past fiscal year, which covered December 1993 through November
1994, produced plenty of volatility in the stock market but only
modest overall progress for the fund. Although the fund's net asset
value declined over the period, capital gain and dividend
distributions to shareholders more than made up for the difference.
(When a capital gain is paid, the fund's net asset value is reduced
by a like amount.) Comparing the fund's total return to the broad
stock market, it almost exactly matched that of the Standard &
Poor's 500 Stock Index (an unmanaged group of stocks commonly used
to measure the performance of stocks in general).
The past 12 months largely came down to a tug of war between the
negative influence of rising interest rates and the positive forces
of low inflation and expanding corporate profits. The period got
off to a strong start, as low interest rates and an improving
economy in the United States buoyed the stock market. The fund
greatly capitalized on the situation, generating nearly a 5% gain
in December 1993 alone.
Cyclicals, foreigns strong
Our holdings among cyclical stocks, those of companies whose
fortunes are closely tied to economic trends, led the way for us at
that time. A relatively new investment theme in the portfolio - <PAGE>
stocks of
certain California-based companies - also paid off well, as those
companies began to benefit from an economic
recovery in that state.
But the biggest boost to performance came from our holdings in
countries such as Hong Kong, Malaysia, Singapore and Mexico, where
stocks soared. Although most foreign markets cooled off soon in
1994, the fund continued to advance nicely in January.
The environment changed quickly in early February, however, as the
Federal Reserve began raising interest rates to temper economic
growth and head off a potential upswing in the inflation rate. The
U.S. stock market reacted quite negatively to the Fed's action and
went into a sustained retreat that soon spread to many foreign
markets. As a result, from February through April, the fund gave
back a good portion of the appreciation it had earned both here and
abroad.
Another rally, another slump
The next notable move for the fund came during August and
September, when many of our domestic and foreign stocks came
roaring back, led by issues of companies in the technology,
consumer products, healthcare and telecommunications sectors. But,
in keeping with the recent nature of the markets, that gain was
followed by another sharp decline in the final weeks of the period.
As for portfolio changes, late in the fiscal year we reduced our
holdings among cyclical stocks and began moving more money into
consumer and growth stocks, where we think the potential has
improved. We also allowed our level of cash reserves to build,
which should provide some cushion in the event of market downturns,
as well as enable us to take greater advantage of attractive buying
opportunities. Finally, we reduced the number of stocks in the
portfolio, eliminating small positions whose effect on performance
was negligible.
While the possibility of higher interest rates probably will
continue to present a hurdle for the market over the near term, we
anticipate a better return from stocks, both here and abroad, in
the current fiscal year. Nevertheless, we expect the markets,
especially the U.S. market, to again be very discriminating about
which stocks will be rewarded. We believe we own many securities
that are poised for gains and continue to be highly selective in
adding other stocks in this volatile environment.
Rich Lazarchic
<PAGE>
PAGE 6
12-month performance
(All figures per share)
Net asset value (NAV)
Nov. 30, 1994 $ 11.29
Nov. 30, 1993 $ 12.16
Decrease $ (0.87)
Distributions
Dec. 1, 1993 - Nov. 30, 1994
From income $ 0.28
From capital gains$ 0.75
Total distribution$ 1.03
Total return* +1.0%
*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>
PAGE 7
<TABLE>
IDS Managed Retirement Fund, Inc.
Your fund's ten largest holdings
<CAPTION>
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets) (as of Nov. 30, 1994)
_______________________________________________________________________________________________________
<S> <C> <C>
Cisco Systems 2.29% $51,600,000
A leader in the "router" segment of the networking
industry. (A router is a device that allows various
computers to communicate.)
Dow Chemical 2.13 48,000,000
The largest chemical company in the United States
and the industry leader in nearly all major chemicals
and plastics businesses.
Intel 1.82 41,031,250
Designs and maufactures the microprocessor chips used
in all IBM and IBM-compatible personal computers.
BankAmerica 1.82 41,000,000
A holding company that owns Bank of America (one of the
world's largest banks) and Seattle-First National Bank.
Pfizer 1.72 38,687,500
A leading producer of pharmaceuticals, hospital
products, animal health items, non prescription
medications and specialty chemicals.
Emerson Electric 1.44 32,450,000
Emerson Electric is a diversified manufacturer of
electrical and electronic products for use in commercial
and industrial products, appliances and construction-
related components.
CSX 1.39 31,275,000
A transportation company that generates most of its income
from coal and freight-hauling by rail.
Motorola 1.38 31,006,250
A leading supplier of semiconductors and two-way radios,
paging equipment and cellular mobile telephone systems.
Colgate-Palmolive 1.33 30,000,000
Colgate-Palmolive is a worldwide consumer products
company, maufacturing and marketing products for oral
care, body care, household surface care, fabric care and
animal diet care. Brand names include Ajax, Fab, Science
Diet and Mennen.
Amgen, Inc. 1.30 29,187,500
Amgen, Inc. is a premier biotechnology company. The
company develops, manufactures and markets drugs based on
advances in recombinant DNA and molecular biology for
human health care.
</TABLE>
<PAGE>
PAGE 8
Making the most of your fund
Average annual total return
(as of Nov. 30, 1994)
1 year 5 years Since inception*
- -4.02% +11.03% +14.94%
*Period from Jan. 23, 1985 to Nov. 30, 1994.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures reflect the deduction of the maximum 5% sales charge. This
was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
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 September) and fewer shares when the
per share market price is high.
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
<PAGE>
PAGE 9
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.
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 grown in IDS Managed Retirement Fund
Average annual total return $39,240
(as of Nov. 30, 1994) Managed
Since Retirement
1 year 5 years 1/23/85 S&P 500 Fund
- -4.02% +11.03% +14.94% Stock Index
$20,000 Lipper Growth & Income
Fund Index
$9,500
2/1/85 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 2/1/85 to 11/30/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $17,890.
Standard & Poor's 500 Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
Lipper Growth & Income Fund Index, published by Lipper Analytical
Services, Inc., includes 30 funds that are generally similar to
this fund, although some funds in the index may have somewhat
different investment policies or objectives.
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.
<PAGE>
PAGE 10
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Average annual total return figures reflect the deduction of the
maximum 5% sales charge. This was a period of widely fluctuating
security prices. Past performance is no guarantee of future
results.<PAGE>
PAGE 11
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, 1994, 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, 1994, and
the financial highlights for each of the
years in the nine-year period ended
November 30, 1994, 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, 1994, and the results of its
operations for the year then ended and the
changes in its net assets for each of the
<PAGE>
PAGE 12
years in the two-year period ended
November 30, 1994, and the financial
highlights for the periods stated in the
first paragraph above, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
January 6, 1995<PAGE>
PAGE 13
<TABLE>
Financial statements
Statement of assets and liabilities
IDS Managed Retirement Fund, Inc.
Nov. 30, 1994
<CAPTION>
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
Investments in securities of unaffiliated issuers
(identified cost $2,051,806,935) $2,195,401,387
Investments in securities of affiliated issuer (identified cost $6,108,130) 5,475,000
Cash in bank on demand deposit 4,489,766
Receivable for investment securities sold 139,931,271
Dividends and accrued interest receivable 4,294,624
Receivable for foreign currency contracts held, at value (Notes 1 and 4) 60,996,678
U.S. government securities held as collateral (Note 5) 22,237,024
_____________________________________________________________________________________________________________
Total assets 2,432,825,750
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Payable for investment securities purchased 51,514,660
Payable for foreign currency contracts held, at value (Notes 1 and 4) 60,038,803
Payable upon return of securities loaned (Note 5) 67,395,024
Accrued investment management and services fee 1,003,965
Accrued distribution fee 118,728
Accrued transfer agency fee 296,055
Other accrued expenses 579,815
Open option contracts written, at value
(premium received $637,477)(Note 7) 282,200
_____________________________________________________________________________________________________________
Total liabilities 181,229,250
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $2,251,596,500
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 199,439,995 shares $ 1,994,400
Additional paid-in capital 1,939,765,091
Undistributed net investment income 5,699,238
Accumulated net realized gain (Note 1) 159,863,297
Unrealized appreciation (Note 4) 144,274,474
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $2,251,596,500
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 11.29
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.<PAGE>
PAGE 14
Financial statements
Statement of operations
IDS Managed Retirement Fund, Inc.
Year ended Nov. 30, 1994
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $516,113) $31,161,622
Interest 10,369,966
_____________________________________________________________________________________________________________
Total income 41,531,588
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 11,307,904
Distribution fee 1,316,703
Transfer agency fee 3,281,422
Compensation of directors 40,355
Compensation of officers 25,949
Custodian fees 1,190,704
Postage 275,181
Registration fees 257,082
Reports to shareholders 90,639
Audit fees 30,500
Administrative 22,206
Other 27,647
_____________________________________________________________________________________________________________
Total expenses 17,866,292
_____________________________________________________________________________________________________________
Investment income -- net 23,665,296
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including gain of $1,302,096 from foreign currency transactions) (Note 3) 158,086,230
Net realized gain on closed stock index futures contracts 2,084,172
Net realized gain on closed or expired options written (Note 7) 1,074,231
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 161,244,633
Net change in unrealized appreciation or depreciation (173,232,646)
_____________________________________________________________________________________________________________
Net loss on investments and foreign currency (11,988,013)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $11,677,283
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 15
Financial statements
Statements of changes in net assets
IDS Managed Retirement Fund, Inc.
Year ended Nov. 30,
<CAPTION>
_____________________________________________________________________________________________________________
Operations and distributions 1994 1993
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 23,665,296 $ 23,878,221
Net realized gain on investments and foreign currency 161,244,633 138,631,701
Net change in unrealized appreciation or depreciation (173,232,646) 11,572,135
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 11,677,283 174,082,057
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (21,173,864) (25,829,748)
Net realized gain (137,757,653) (97,315,857)
Excess distribution of realized gain (Note 1) (1,302,096) (55,002)
_____________________________________________________________________________________________________________
Total distributions (160,233,613) (123,200,607)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
52,780,284 and 33,898,181 shares (Note 2) 612,687,152 394,118,183
Net asset value of 13,541,661 and 10,877,169 shares
issued in reinvestment of distributions 159,258,078 122,472,864
Payments for redemptions of
18,632,894 and 12,690,556 shares (216,560,194) (147,340,355)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
47,689,051 and 32,084,794 shares 555,385,036 369,250,692
_____________________________________________________________________________________________________________
Total increase in net assets 406,828,706 420,132,142
_____________________________________________________________________________________________________________
Net assets at beginning of year 1,844,767,794 1,424,635,652
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$5,699,238 and $3,180,521) $2,251,596,500 $1,844,767,794
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 16
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, including
illiquid securities, 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
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.<PAGE>
PAGE 17
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.
Futures transactions
In order to gain exposure to or protect itself
from changes in the market, the fund may buy and
sell 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.
Foreign currency translations and
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. The effect of changes in
foreign exchange rates on realized and unrealized
security gains or losses is reflected as a
component of such gains or losses. In the
statement of operations, net realized gains or
losses from foreign currency transactions may
arise from sales of foreign currency, closed
forward contracts, exchange gains or losses
realized between the trade date and settlement
dates on securities transactions, and other
translation gains or losses on dividends,
interest income and foreign withholding taxes.
<PAGE>
PAGE 18
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.
On the statement of assets and liabilities, as a
result of permanent book-to-tax difference,
undistributed net investment income has been
increased by $27,285, resulting in a net
reclassification adjustment to decrease paid-in-
capital by $27,285.
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.
<PAGE>
PAGE 19
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 American Express Financial
Corporation 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 $107,288 for the
year ended Nov. 30, 1994.
The fund also pays American Express Financial
Corporation 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.
American Express Financial Corporation will
assume and pay any expenses (except taxes and
brokerage commissions) that exceed the most
restrictive applicable state expense limitation.
Sales charges by American Express Financial
Advisors Inc. for distributing fund shares were
$12,140,380 for the year ended Nov. 30, 1994. The
fund also pays custodian fees to American Express
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
<PAGE>
PAGE 20
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 $19,451 for the year
ended Nov. 30, 1994.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of
securities (other than short-term obligations)
aggregated $1,476,883,391 and $1,294,202,462,
respectively, for the year ended Nov. 30, 1994.
Realized gains and losses are determined on an
identified cost basis.
Brokerage commissions paid to brokers affiliated
with American Express Financial Corporation were
$345,759 for the year ended Nov. 30, 1994.
___________________________________________________________________
4. Foreign currency contracts
At Nov. 30, 1994, the fund had entered into 25
foreign currency exchange contracts that obligate
the fund to deliver currencies at specified
future dates. The net unrealized appreciation of
$957,875 on these contracts is included in the
accompanying financial statements. The terms of
the open contracts are as follows:
<PAGE>
PAGE 21
<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, 1994 received Nov. 30, 1994
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Dec. 1, 1994 350,140 $ 350,140 892,928 $ 349,373
U.S. Dollar Malaysian Dollar
Dec. 1, 1994 307,204 12,881 12,779 12,779
Philippine Peso U.S. Dollar
Dec. 2, 1994 416,020 17,443 17,305 17,305
Philippine Peso U.S. Dollar
Dec. 5, 1994 7,220,189 7,220,189 9,627,431 7,403,014
U.S. Dollar Australian Dollar
Dec. 5, 1994 4,191,560 4,191,560 5,604,814 4,309,822
U.S. Dollar Australian Dollar
Dec. 5, 1994 442,103 442,103 4,842,884 437,973
U.S. Dollar Austrian Schilling
Dec. 5, 1994 398,978 398,978 4,363,026 394,576
U.S. Dollar Austrian Schilling
Dec. 5, 1994 88,074 88,074 960,730 86,885
U.S. Dollar Austrian Schilling
Dec. 5, 1994 585,346 585,346 6,420,393 580,637
U.S. Dollar Austrian Schilling
Dec. 5, 1994 23,254 17,881 17,721 17,721
Australian Dollar U.S. Dollar
Dec. 5, 1994 2,063,983 1,500,751 1,498,408 1,498,408
Canadian Dollar U.S. Dollar
Dec. 5, 1994 98,700 4,138 4,118 4,118
Philippine Peso U.S. Dollar
Dec. 6, 1994 193,137 148,512 147,485 147,485
Australian Dollar U.S. Dollar
Dec. 7, 1994 233,765 179,754 179,555 179,555
Australian Dollar U.S. Dollar
Dec. 12, 1994 474,190 474,190 5,219,220 472,007
U.S. Dollar Austrian Schilling
Dec. 12, 1994 377,884 377,884 4,155,399 375,799
U.S. Dollar Austrian Schilling
Dec. 30, 1994 100,067 100,067 535,416 99,520
U.S. Dollar French Franc
Dec. 30, 1994 1,017,314 1,017,314 5,446,290 1,012,321
U.S. Dollar French Franc
Dec. 30, 1994 254,518 254,518 1,365,766 253,860
U.S. Dollar French Franc
Dec. 30, 1994 188,619 188,619 1,014,867 188,637
U.S. Dollar French Franc
Feb. 1, 1995 3,700,000 5,799,935 5,997,238 5,997,238
British Pound U.S. Dollar
Feb. 1, 1995 15,500,000 2,884,011 2,995,169 2,995,169
French Franc U.S. Dollar
Feb. 1, 1995 920,000,000 7,012,195 6,997,794 6,997,794
Spanish Peseta U.S. Dollar
Feb. 1, 1995 115,000,000 15,217,014 15,179,514 15,179,514
Swedish Krona U.S. Dollar
<PAGE>
PAGE 20
Feb. 1, 1995 18,100,000 11,555,306 11,985,168 11,985,168
Deutsch Mark ___________ U.S. Dollar ___________
$60,038,803 $60,996,678
</TABLE>
___________________________________________________________________
5. Lending of portfolio securities
At Nov. 30, 1994, securities valued at
$64,421,407 were on loan to brokers. For
collateral, the fund received $45,158,000 in cash
and U.S. government securities valued at
$22,237,024. Income from securities lending
amounted to $587,847 for the year ended Nov. 30,
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.
___________________________________________________________________
6. Illiquid securities
At Nov. 30, 1994, 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 securites at Nov. 30, 1994, was
$8,010,400 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. Option contracts written
The number of contracts and premium amounts
associated with options written is as follows:
<TABLE><CAPTION>
Year ended Nov. 30, 1994
____________________________________
Puts Calls
Contracts Premium Contracts Premium
_____________________________________________________________________
<S> <C> <C> <C> <C>
Balance Nov. 30, 1993 -- $ -- -- $ --
Opened 4,000 283,278 37,040 2,878,143
Closed -- -- (11,366) (1,033,233)
Exercised (500) (43,061) (10,097) (953,576)
Expired (2,000) (158,095) (7,503) (335,979)
____________________________________________________________________
Balance Nov. 30, 1994 1,500 $ 82,122 8,074 $ 555,355
____________________________________________________________________
</TABLE>
<PAGE>
PAGE 21
IDS Managed Retirement Fund, Inc.
8. Financial highlights
The table below shows certain important
financial information for evaluating the
fund's results.
<TABLE>
<CAPTION>
Fiscal period ended Nov. 30,
Per share income and capital changes*
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985**
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value $12.16 $11.91 $11.08 $ 9.01 $10.05 $ 7.48 $6.82 $6.95 $5.61 $5.00
beginning of period
Income from investment operations:
Net investment income .13 .17 .21 .20 .27 .26 .16 .13 .16 .15
Net gains (losses) .03 1.07 2.04 2.45 (.39) 2.51 .66 (.13) 1.61 .62
(both realized
and unrealized)
Total from investment .16 1.24 2.25 2.65 (.12) 2.77 .82 -- 1.77 .77
operations
Less distributions:
Dividends from net (.12) (.19) (.21) (.27) (.25) (.20) (.16) (.13) (.16) (.14)
investment income
Distributions from (.90) (.80) (1.20) (.31) (.67) -- -- -- (.27) (.02)
realized gains
Excess distributions
of realized gains (.01) -- (.01) -- -- -- -- -- -- --
Total distributions (1.03) (.99) (1.42) (.58) (.92) (.20) (.16) (.13) (.43) (.16)
Net asset value, $11.29 $12.16 $11.91 $11.08 $ 9.01 $10.05 $7.48 $6.82 $6.95 $5.61
end of period
Ratios/supplemental data
<CAPTION>
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985**
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net assets, end of period $2,252 $1,845 $1,425 $1,007 $715 $700 $644 $673 $318 $84
(in millions)
Ratio of expenses to .85% .83% .85% .90% .90% .92% .88% .88% .99% 1.08%***
average daily net assets
Ratio of net income to 1.13% 1.46% 1.94% 1.98% 2.94% 2.82% 2.07% 1.83% 2.78% 3.09%***
average daily net assets
Portfolio turnover rate 66% 61% 46% 81% 78% 73% 102% 87% 127% 89%
(excluding short-term
securities)
Total return+ 1.0% 11.2% 22.3% 30.9% (1.2%) 37.3% 12.0% (0.3%) 31.8% 15.6%++
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Commencement of operations. Period from Jan. 23, 1985 to Nov. 30, 1985.
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended Nov. 30, 1985, the annualized total return is 18.5%.
/TABLE
<PAGE>
PAGE 24
<TABLE>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1994 investments compared to net assets)
<CAPTION>
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (83.5%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (1.3%)
AlliedSignal 300,000 $ 9,787,500
Raytheon 300,000 18,862,500
______________
Total 28,650,000
_____________________________________________________________________________________________________________________________
Automotive & related (0.8%)
Automotive Inds 655,000 (b) 11,790,000
Hayes Wheels Intl 300,000 6,112,500
______________
Total 17,902,500
_____________________________________________________________________________________________________________________________
Banks and savings & loans (0.8%)
First Chicago 200,000 9,300,000
NationsBank 200,000 8,975,000
______________
Total 18,275,000
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.9%)
PepsiCo 600,000 21,225,000
_____________________________________________________________________________________________________________________________
Building materials (3.8%)
C Brewer Homes 140,000 (b) 1,400,000
Ferro 300,000 7,275,000
Georgia Pacific 300,000 (c) 21,450,000
Martin Marietta 175,000 3,150,000
Masco 1,000,000 22,250,000
Weyerhaeuser 750,000 28,781,250
______________
Total 84,306,250
_____________________________________________________________________________________________________________________________
Chemicals (4.3%)
Air Products & Chemicals 600,000 26,625,000
Crompton & Knowles 600,000 9,300,000
Dow Chemical 750,000 48,000,000
Georgia Gulf 150,000 (b,g) 5,325,000
Lyondell Petrochem 300,000 7,275,000
______________
Total 96,525,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 25
Communications equipment (3.3%)
Airtouch Communications 800,000 (b) 21,700,000
Alltell 800,000 22,500,000
Raychem 300,000 10,387,500
Scientific Atlanta 1,000,000 19,750,000
______________
Total 74,337,500
_____________________________________________________________________________________________________________________________
Computers & office equipment (3.3%)
Cisco Systems 1,600,000 (b) 51,600,000
Pitney Bowes 700,000 23,275,000
______________
Total 74,875,000
_____________________________________________________________________________________________________________________________
Electronics (4.5%)
Amphenol 250,000 (b) 5,968,750
Intel 650,000 41,031,250
Motorola 550,000 31,006,250
Vishay Intertechnology 500,000 (b) 23,937,500
______________
Total 101,943,750
_____________________________________________________________________________________________________________________________
Energy (3.5%)
Amoco 300,000 18,225,000
Cross Timber 170,900 2,499,412
Devon Energy 240,000 4,620,000
Enron 530,000 14,310,000
HS Resources 530,000 (b) 9,142,500
Occidental Petroleum 1,100,000 (c) 21,587,500
Sun 250,000 7,281,250
______________
Total 77,665,662
_____________________________________________________________________________________________________________________________
Energy equipment & services (0.2%)
Camco 250,000 4,750,000
_____________________________________________________________________________________________________________________________
Financial services (3.4%)
BankAmerica 1,000,000 (g) 41,000,000
Federal Natl Mtge 400,000 28,450,000
TIG Holdings 350,000 6,125,000
______________
Total 75,575,000
_____________________________________________________________________________________________________________________________
Furniture & appliances (0.4%)
Black & Decker 400,000 9,600,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 26
Health care (7.6%)
Abbott Laboratories 500,000 15,937,500
Amgen 500,000 (b) 29,187,500
Colgate-Palmolive 500,000 30,000,000
Johnson & Johnson 300,000 16,012,500
Medtronic 300,000 15,900,000
Merck 2,193 81,689
Pfizer 500,000 38,687,500
Schering-Plough 350,000 26,206,250
______________
Total 172,012,939
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.5%)
Caterpillar 99,900 5,394,600
General Signal 200,000 6,450,000
______________
Total 11,844,600
_____________________________________________________________________________________________________________________________
Industrial transportation (2.5%)
CSX 450,000 31,275,000
Southwest Airlines 750,000 15,843,750
Union Pacific 200,000 9,300,000
______________
Total 56,418,750
_____________________________________________________________________________________________________________________________
Insurance (1.2%)
EW Blanch 500,000 9,562,500
Tempest Reinsurance Private 80,000 (b,f) 8,010,400
UNUM 250,000 9,125,000
______________
Total 26,697,900
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (1.6%)
Bally Gaming Intl 325,000 (b) 2,965,625
Caesars World 450,000 (b) 19,575,000
Intl Game Technology 800,000 13,300,000
______________
Total 35,840,625
_____________________________________________________________________________________________________________________________
Media (1.2%)
Spelling Entertainment Group 500,000 5,687,500
Time Warner 600,000 20,250,000
______________
Total 25,937,500
_____________________________________________________________________________________________________________________________
Metals (0.7%)
Magma Copper Cl B 278,900 (b,g) 4,497,263
Reynolds Metals 250,000 11,781,250
______________
Total 16,278,513
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 27
Multi-industry conglomerates (2.8%)
Emerson Electric 550,000 32,450,000
General Electric 600,000 27,600,000
Minnesota Mining & Manufacturing 50,000 2,562,500
______________
Total 62,612,500
_____________________________________________________________________________________________________________________________
Natural gas (0.2%)
Equitable Resources 171,000 4,617,000
_____________________________________________________________________________________________________________________________
Paper & packaging (1.1%)
Crown Cork & Seal 400,000 (b) 15,100,000
Jefferson Smurfit 670,000 (b) 10,720,000
______________
Total 25,820,000
_____________________________________________________________________________________________________________________________
Retail (7.3%)
Best Buy 300,000 (b) 13,237,500
Broadway Stores 2,000,000 (b,c) 20,500,000
Dillard Dept Store Cl A 500,000 14,062,500
Duracell Intl 500,000 22,500,000
Federated Dept Stores 500,000 (b) 10,250,000
Gap 400,000 14,100,000
Home Depot 500,000 23,125,000
Limited 700,000 13,562,500
Meyer (Fred) 300,000 (b) 9,712,500
Office Depot 900,000 (b,c) 21,375,000
______________
Total 162,425,000
_____________________________________________________________________________________________________________________________
Utilities-telephone (1.0%)
MCI Communications 1,200,000 23,400,000
_____________________________________________________________________________________________________________________________
Foreign (25.4%)(d)
Australia (0.6%)
James Hardie Inds 1,519,300 2,254,641
News Corp 3,000,000 10,425,000
_____________
Total 12,679,641
_____________________________________________________________________________________________________________________________
Austria (0.6%)
Maculan Holdings 84,300 7,341,687
Wienerberger Baustoffindustr 15,000 5,167,080
______________
Total 12,508,767
_____________________________________________________________________________________________________________________________
Brazil (0.2%)
Usiminas Siderurg Minas ADR 350,000 (b,e) 5,600,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 28
Canada (3.1%)
American Barrick Resources 301,800 (b) 6,300,075
Inco 481,600 13,244,000
Magna Intl Cl A 200,000 6,750,000
Methanex 600,000 (b) 8,925,000
Royal Plastics Group 1,230,000 (b,e) 10,061,400
Sceptre Resources 1,000,000 (b) 7,180,300
Singer 400,000 (b) 11,750,000
Tarragon Oil & Gas 500,000 (b) 5,089,800
______________
Total 69,300,575
_____________________________________________________________________________________________________________________________
Chile (0.2%)
Provida ADR 290,000 5,401,250
_____________________________________________________________________________________________________________________________
China (0.3%)
Huaneng Power Intl ADR 400,000 (b) 6,900,000
_____________________________________________________________________________________________________________________________
Denmark (0.6%)
Tele Danmark ADR 525,000 (b) 13,584,375
_____________________________________________________________________________________________________________________________
Finland (0.3%)
Kemira ADR 450,000 (b,c) 6,985,710
_____________________________________________________________________________________________________________________________
France (0.4%)
Clarins 58,270 5,307,115
Renault 100,000 (b,e) 3,368,000
_____________
Total 8,675,115
_____________________________________________________________________________________________________________________________
Germany (0.9%)
Henkel 13,500 4,682,030
Lufthansa 125,000 (b,c) 15,802,750
_____________
Total 20,484,780
_____________________________________________________________________________________________________________________________
Hong Kong (1.0%)
Dao Heng Bank Group 2,800,000 (b) 8,579,200
Henderson Land Development 1,600,000 (c) 8,604,800
Luks Industrial 25,000,000 4,100,000
Tian An China Investment 10,000,000 (b) 2,100,000
______________
Total 23,384,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 29
India (2.0%)
Century Textile & Inds 39,410 (b,e) 7,724,360
Grasim Inds 200,000 (b,c,e) 5,250,000
India Cements 335,000 (b,e) 3,098,750
JCT GDR 300,000 (b,e) 5,250,000
JK Inds 687,500 (b,e) 4,967,187
Larsen & Toubro 100,000 (b,e) 1,687,500
Raymond Woollen Mills 315,000 (b) 4,961,250
Tata Engineering & Locom GDR 714,000 (b,e) 12,138,000
______________
Total 45,077,047
_____________________________________________________________________________________________________________________________
Indonesia (0.8%)
Indosat ADR 46,200 (b) 1,755,600
Jaya Real Properties 2,500,000 10,041,083
Tri Polyta ADR 250,000 (b) 6,593,750
______________
Total 18,390,433
_____________________________________________________________________________________________________________________________
Malaysia (4.3%)
Aokam Perdana 2,500,000 18,485,000
Berjaya South Island 500,000 3,775,500
Golden Plus Holding 2,500,000 10,075,000
Hong Leong Credit 2,995,999 15,354,495
Hume Inds 3,500,000 15,200,500
Idris Hydraulic 3,167,000 (b) 5,301,558
Malaysian Resources 5,000,000 (b) 9,660,000
MBF Capital 4,500,000 4,999,500
Multi-Purpose Holdings 2,249,000 3,290,287
United Engineers 1,800,000 9,507,600
______________
Total 95,649,440
_____________________________________________________________________________________________________________________________
Mexico (2.4%)
Banco Osorno Y La Union ADR 225,000 (b) 2,925,000
Desc Sociedad Inds 200,000 (b,c) 5,850,000
Grupo Financial Banamex 775,000 (b) 5,453,598
Grupo Financial Bancomer 4,500,000 (b) 5,469,750
Grupo Sidek ADR 500,000 (b,c) 8,500,000
Grupo Televisa GDR 300,000 (b,g) 13,575,000
Hylsamex 69,000 (b,e) 1,661,296
Panamerican Beverages 200,000 7,000,000
Posadas de Mexico L 3,646,500 3,721,618
______________
Total 54,156,262
_____________________________________________________________________________________________________________________________
Netherlands (0.5%)
EVC Intl 251,800 (b,e) 11,013,228
_____________________________________________________________________________________________________________________________
New Zealand (0.4%)
Carter Holt Harvey 4,000,000 8,864,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 30
Philippines (0.8%)
Aboitiz Equity Ventures Inca 70,120 (b) 1,595,230
Intl Container Term Services 4,460,400 (b) 3,600,114
Philippine Long Distance 263,600 (c) 13,583,276
______________
Total 18,778,620
_____________________________________________________________________________________________________________________________
Singapore (1.8%)
China North Inds 15,000,000 (b) 14,700,000
Hotel Properties 10,400,000 14,756,200
Straits Steamship Land 3,000,000 9,999,000
______________
Total 39,455,200
_____________________________________________________________________________________________________________________________
South Africa (0.1%)
DeBeers Consolidated Mines 125,000 (b) 2,693,359
_____________________________________________________________________________________________________________________________
South Korea (0.2%)
Korea Electric Power 125,000 (b) 4,530,500
_____________________________________________________________________________________________________________________________
Spain (0.6%)
Telefonica de Espana 350,000 13,518,750
_____________________________________________________________________________________________________________________________
Sweden (1.3%)
Autoliv 250,000 (b) 8,759,000
Ericsson LM Tel ADR 10,000,000 19,687,500
______________
Total 28,446,500
_____________________________________________________________________________________________________________________________
Switzerland (0.4%)
Holderbank Finan Glarus 12,250 9,510,520
_____________________________________________________________________________________________________________________________
Thailand (0.4%)
Shinawatra Computer 349,912 9,273,368
_____________________________________________________________________________________________________________________________
United Kingdom (0.9%)
Bush Boake Allen 300,000 (b) 6,825,000
Telewest Communications 150,000 (b,c) 4,368,750
TLG 1,950,000 (b,e) 4,048,200
Woodside Petroleum 1,500,000 (b) 5,374,500
______________
Total 20,616,450
_____________________________________________________________________________________________________________________________
Venezuela (0.2%)
Andina de Foment 200,000 (b) 5,475,000
_____________________________________________________________________________________________________________________________
Total common stocks of unaffiliated issuers
(Cost: $1,731,505,800) $1,880,488,879
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 31
_____________________________________________________________________________________________________________________________
<CAPTION>
Preferred stocks & other (0.9%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Equitable
6% Cv 270,000 (e) $ 12,015,000
LSB Inds
3.25% Cv 100,000 3,500,000
Luks Ind
Warrants 2,400,000 (d) 43,200
Philippine Long Distance
3.50% Cv 100,000 (d) 4,987,501
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $23,500,002) $ 20,545,701
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 32
_____________________________________________________________________________________________________________________________
<CAPTION>
Bonds (2.4%)
_____________________________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Domestic (0.8%)
Costco Wholesale
5.75% Cv 2002 $15,000,000 $ 12,675,000
Medical Care Intl
6.75% 2006 6,500,000 (e) 5,525,000
______________
Total 18,200,000
_____________________________________________________________________________________________________________________________
Foreign (1.6%)(d)
Banco Nacional de Mexico
7% Cv 1999 10,000,000 (e) 10,750,000
Cemex
4.25% Cv 1997 10,000,000 (c) 10,437,500
Liberty Life Inds
6.50% Euro 2004 2,000,000 (e) 1,975,000
Rainy River Forest
8% 2004 2,799,000 1,989,400
Renong
2.50% Cv 2005 10,000,000 9,550,000
______________
Total 34,701,900
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $55,294,191) $ 52,901,900
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 33
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (10.7%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (0.3%)
Federal Home Loan Bank
Disc Nt
12-02-94 4.93% $ 3,300,000 $ 3,299,550
Federal Natl Mtge Assn
Disc Nt
12-01-94 4.92 2,600,000 2,600,000
______________
5,899,550
_____________________________________________________________________________________________________________________________
Commercial paper (10.2%)
Amer General Finance
12-16-94 5.38 10,000,000 9,977,708
AT&T
02-24-95 5.89 13,000,000 12,810,561
Banc One Diversified Services
12-06-94 5.15 6,900,000 6,894,587
Beneficial
12-21-94 5.53 6,000,000 5,981,667
12-28-94 5.53 6,500,000 6,473,188
Cafco
12-06-94 5.01 6,400,000 6,395,564
01-19-95 5.81 7,000,000 6,945,215
Cargill
12-09-94 5.17 5,900,000 5,893,248
CIT Group Holdings
01-23-95 5.81 7,500,000 7,433,207
Chevron Oil Finance
12-01-94 4.93 2,100,000 2,100,000
Commercial Credit
12-21-94 5.53 6,800,000 6,779,222
Commerzbank U.S. Finance
12-01-94 4.97 20,000,000 20,000,000
Consolidated Rail
01-18-95 5.67 7,300,000 (h) 7,240,491
02-14-95 5.85 1,300,000 (h) 1,283,259
Ford Motor Credit
12-02-94 5.04 6,400,000 6,399,108
<PAGE>
PAGE 34
Gateway Fuel
12-02-94 4.97 7,500,000 7,498,969
GE Capital
01-18-95 5.81 6,900,000 6,845,087
01-27-95 5.81 5,400,000 5,350,837
Lilly (Eli)
12-13-94 5.50 7,000,000 6,987,213
Metlife Funding
12-08-94 5.17 7,000,000 6,992,990
12-20-94 5.40 5,100,000 5,085,532
01-25-95 5.81 6,600,000 6,539,004
Natl Bank
Detroit Canada
01-24-95 5.79 6,600,000 6,540,163
Nestle Capital
12-01-94 5.01 2,100,000 2,100,000
Penney (JC) Funding
12-12-94 5.32 7,500,000 7,487,854
Pioneer Hi-Bred Intl
12-05-94 4.95 3,600,000 3,598,028
12-06-94 5.02 4,600,000 4,596,806
Southwestern Bell Capital
12-12-94 5.08 2,500,000 (h) 2,496,142
St. Paul Companies
12-05-94 4.94 5,200,000 (h) 5,197,157
Sandoz
01-24-95 5.54 8,100,000 8,026,564
SmithKline Beecham
12-13-94 5.03 6,500,000 6,489,167
Sysco
12-02-94 4.97 5,100,000 (h) 5,099,299
01-17-95 5.76 6,800,000 (h) 6,747,200
01-20-95 5.81 6,600,000 (h) 6,547,292
USAA Capital
12-02-94 4.93 7,000,000 6,999,047
_______________
Total 229,831,376
_____________________________________________________________________________________________________________________________
Letter of credit (0.2%)
First Natl Bank Chicago-
Commed Fuel
01-06-95 5.53 5,769,000 5,733,981
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $241,506,942) $ 241,464,907
_____________________________________________________________________________________________________________________________
Total investments in securities of unaffiliated issuers
(Cost: $2,051,806,935) $2,195,401,387
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 35
Investment in securities of affiliated issuer (i)
_____________________________________________________________________________________________________________________________
<CAPTION>
Common stock (0.2%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Sybron Chemicals 300,000 (b) $ 5,475,000
_____________________________________________________________________________________________________________________________
Total investments in securities of affiliated issuer
(Cost: $6,108,130) $ 5,475,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $2,057,915,065)(j) $2,200,876,387
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 36
_____________________________________________________________________________________________________________________________
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, 1994, is as follows:
<CAPTION>
Acquisition
Security date Cost
______________________________________________________________________
<S> <C> <C>
Tempest Reinsurance Private 09-13-93 $8,000,000
(g) At Nov. 30, 1994, securities valued at $26,615,763 were held to cover open call
options written as follows:
<CAPTION>
Number of Exercise Expiration
Issuer contracts price date Value(a)
__________________________________________________________________________________
<S> <C> <C> <C> <C>
BankAmerica 785 $45 Dec. 1994 $ 4,906
Georgia Gulf 1,500 40 Dec. 1994 28,125
Grupo Televisa 3,000 50 Dec. 1994 150,000
Magma Copper 2,789 17 Dec. 1994 52,294
At Nov. 30, 1994, cash or short-term securities were designated to cover open put options
written as follows:
Number of Exercise Expiration
Issuer contracts price date Value(a)
__________________________________________________________________________________
Kellogg 1,500 $55 Dec. 1994 $ 46,875
(h) 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.
(i) Investments representing 5% or more of the outstanding voting securities of the issuer.
(j) At Nov 30. 1994, the cost of securities for federal income tax
purposes was $2,058,169,297 and the aggregate gross unrealized appreciation
and depreciation based on that cost was:
Unrealized appreciation $251,353,209
Unrealized depreciation (108,646,119)
_____________________________________________________________
Net unrealized appreciation $142,707,090
_____________________________________________________________<PAGE>
PAGE 37
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 deposits (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
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
<PAGE>
PAGE 38
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
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
<PAGE>
PAGE 39
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
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 Select 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
<PAGE>
PAGE 40
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 stock 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 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
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.
<PAGE>
PAGE 41
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.
(icon of) ship
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 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 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
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
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
<PAGE>
PAGE 42
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.
(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 financial advisor or writing to American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.<PAGE>
PAGE 43
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.
IDS Managed Retirement Fund, Inc.
Fiscal year ended Nov. 30, 1994
Income distributions
taxable as dividend income,
27.31% qualifying for deduction by corporations.
</TABLE>
<TABLE>
<CAPTION>
Payable date Per share
<S> <C>
Dec. 29, 1993 $0.1742
March 30, 1994 0.0325
June 29, 1994 0.0350
Sept. 29, 1994 0.0325
Total $0.2742
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 29, 1993 $0.7512
Total distributions $1.0254
The distribution of $0.9254 per share, payable
Dec. 29, 1993, consisted of $0.0265 derived from
net investment income, $0.1477 from net short-
term capital gains (a total of $0.1742 taxable as
dividend income) and $0.7512 from net long-term
capital gains.
/TABLE
<PAGE>
PAGE 44
Quick telephone reference
American Express 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
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express 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
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Managed Retirement Fund
IDS Tower 10
Minneapolis, MN 55440-0010<PAGE>
PAGE 45
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.
