<PAGE>
PAGE 1
IDS Managed Retirement Fund
1995 annual report
(prospectus enclosed)
(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.
(This annual report includes a prospectus that describes in detail
the Fund's objective, investment policies, risks, sales charges,
fees and other matters of interest. Please read the prospectus
carefully before you invest or send money.)
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. The
key is to be in the right place at the right time. Managed
Retirement Fund has that potential because it has the flexibility
to make sweeping shifts in its asset mix to take advantage of
expected trends in financial markets. While the focus historically
has been on U.S. stocks, the Fund can also hold foreign stocks, as
well as domestic and foreign bonds, plus cash-equivalent
investments. For investors, such flexibility can mean opportunity.<PAGE>
PAGE 3
PAGE
Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the Fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the Fund in detail.
1995 annual report
From the president 4
From the asset allocation strategy team 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 21
IDS mutual funds 28
Federal income tax information 31
1995 prospectus
The Fund in brief 3p
Goal 3p
Types of Fund investments and their risks 3p
Proposed conversion to master/feeder structure 3p
Manager and distributor 3p
Portfolio management team 3p
Alternative purchase arrangements 4p
Sales charge and Fund expenses 5p
Performance 7p
Financial highlights 7p
Total returns 9p
Investment policies and risks 11p
Facts about investments and their risks 12p
Valuing Fund shares 16p
How to purchase, exchange or redeem shares 17p
Alternative purchase arrangements 17p
How to purchase shares 20p
How to exchange shares 23p
How to redeem shares 23p
Reductions and waivers of the sales charge 28p
Special shareholder services 32p
Services 32p
Quick telephone reference 32p
Distributions and taxes 33p
Dividend and capital gain distributions 33p
Reinvestments 33p<PAGE>
PAGE 4
Taxes 34p
How to determine the correct TIN 36p
How the Fund is organized 37p
Shares 37p
Voting rights 37p
Shareholder meetings 37p
Special considerations regarding
master/feeder structure 37p
Board members and officers 39p
Investment manager and transfer agent 41p
Distributor 43p
About American Express Financial Corporation 45p
General information 45p
Appendix 46p
Descriptions of derivative instruments 46p<PAGE>
PAGE 5
To our shareholders
(Photo of) William R. Pearce
President of the Fund
(Photo of) Peter Anderson
Asset allocation strategy team member
(Photo of) Fred Quirsfeld
Asset allocation strategy team member
(Photo of) William N. Westhoff
Asset allocation strategy team member
Fromn the president
IDS Managed Retirement Fund underwent a change in portfolio
management in December 1995. The Fund is now headed by a team of
senior investment managers composed of Peter Anderson, Bill
Westhoff and Fred Quirsfeld. All have been members of the American
Express Financial Advisors investment department for more than 10
years. This strategic team will determine the portfolio's asset
allocation among U.S. stocks, foreign stocks, debt securities and
cash reserves. This mix will vary with changes in the team's
outlook regarding the investment environment.
The second stage in the process is day-to-day portfolio management,
which is now the responsibility of Guru Baliga (U.S. stocks), Steve
Merrell (debt securities) and Paul Hopkins (foreign stocks), all of
whom currently serve as portfolio managers for other IDS mutual
funds.
Ultimately, this team approach means that shareholders will have
the potential to benefit from the specific expertise of a variety
of investment professionals. As you read the team's review of the
past fiscal year, please keep in mind that the portfolio management
change was made after the year was over.
William R. Pearce
From the asset allocation strategy team
The past fiscal year proved to be an excellent time to be invested
in U.S. stocks, as the marked enjoyed its most productive period in
recent years.
Benefiting from this positive trend, IDS Managed Retirement Fund
recorded a total return for Class A shares of 18% for the 12
months--December 1994 through November 1995. (Please note that the
Fund's net asset value over the period was affected by a capital
gain paid to shareholders in December 1994. The distribution
reduced the net asset value by the same amount at that time.)
The period got off to a good start in December, when long-term
interest rates, which had risen throughout 1994, finally began to
decline. Soon lending additional support to the market were often-
outstanding corporate profit reports and ongoing data reflecting a
low inflation rate. With those powerful forces in place, stocks
soon turned a moderate advance into a full-blown rally that, except<PAGE>
PAGE 6
for a comparatively brief summer slump, ran through the end of the
fiscal year.
Technology leads winning sectors
Much of the Fund's gain came from stocks in three sectors:
technology (including computers), financial services (including
banks, insurance companies and savings and loans) and
telecommunications equipment. On the other side of the ledger,
stocks of energy (including oil refiners), telephone utilities and
entertainment companies were among the Fund's poorer performers.
On the foreign front, where we kept about 20% of the portfolio's
assets, there was considerable volatility. In December 1994, a
devaluation of the Mexican peso sent that market into a tail spin
that soon spread to other Latin American markets, as well as
Southeast Asia. Some of those markets rebounded in 1995, but
overall our foreign investments were unproductive. As the year
progressed, we reduced our foreign holdings to about 15% at period-
end.
Higher cash position
Fund performance was also tempered by our decision to raise the
amount of cash reserves in the portfolio -- from about 5% to 14%.
This was a function of our efforts to eliminate positions in
certain illiquid stocks, as well as sell some losing stocks in
order to offset capital gains realized from other investments.
Looking to the current fiscal year, this fund is now managed by a
team of specialists who will first determine the portfolio's asset
allocation (the mix of assets that is appropriate to the investment
environment), and then select securities to comprise the stock
(U.S. and foreign), bond and cash reserve components. While this
approach could result in considerable change among the holdings, it
will not alter the Fund's flexibility in pursing its goal of
providing total return.
Peter Anderson
Fred Quirsfeld
William N. Westhoff
<PAGE>
PAGE 7
Class A
12-month performance
(All figures per share)
Net asset value (NAV)
Nov. 30, 1995 $12.19
Nov. 30, 1994 $11.29
Increase $ 0.90
Distributions
Dec. 1, 1994-Nov. 30, 1995
From income $ 0.56
From capital gains $ 0.40
Total distributions $ 0.96
Total return** +18.0%***
Class B
March 20, 1995-Nov. 30, 1995
(All figures per share)
Net asset value (NAV)
Nov. 30, 1995 $12.16
March 20, 1995* $10.41
Increase $ 1.75
Distributions
March 20, 1995-Nov. 30, 1995
From income $ 0.10
From capital gains $ --
Total distributions $ 0.10
Total return** +17.7%***
Class Y
March 20, 1995-Nov. 30, 1995
(All figures per share)
Net asset value (NAV)
Nov. 30, 1995 $12.19
March 20, 1995* $10.41
Increase $ 1.78
Distributions
March 20, 1995*-Nov. 30, 1995
From income $ 0.14
From capital gains $ --
Total distributions $ 0.14
Total return** +18.4%***
*Inception date.
**The prospectus discusses the effect of sales charges, if any, on
the various classes.
***The total return is a hypothetical investment in the Fund with
all distributions reinvested.<PAGE>
PAGE 8
<TABLE>
<CAPTION>
IDS Managed Retirement Fund, Inc.
Your Fund's ten largest holdings
(pie chart) The ten holdings listed here make up 19.24% of the Fund's net assets
____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Nov. 30, 1995)
_____________________________________________________________________________________________________________
<S> <C> <C>
Cisco Systems 3.01% $84,125,000
A leader in the "router" segment of the networking
industry. (A router is a device that allows various
computers to communicate.)
Computer Associates International 2.35 65,500,000
Systems software packages.
BankAmerica 2.28 63,625,000
A holding company that owns Bank of America (one of the
world's largest banks) and Seattle-First National Bank.
Compaq Computer 1.95 54,450,000
A manufacturer of high-performance laptop, portable and
desktop personal computers using MS-DOS and OS/2 operating
systems.
Amgen 1.78 49,625,000
A premier biotechnology company. The company develops,
manufactures and markets drugs based on advances in
recombinant DNA and molecular biology for human health care.
General Electric 1.69 47,075,000
A diversified company with interests in manufacturing,
broadcasting (NBC), services and technology.
Home Depot 1.59 44,375,000
A seller of a broad range of building materials and
home-improvement products via retail warehouse stores.
The company focuses on the do-it-yourselfer and home
remodeler.
Medtronic 1.57 43,900,000
A major, diversified medical device company.
AirTouch Communications 1.57 43,687,500
A subsidiary of Pacific Telesis, AirTouch Communications
is engaged in non-regulated wireless communication operations,
with cellular interest in the United States, Germany, Japan,
Italy, South Korea and Belgium.
Pfizer 1.45 40,600,000
A leading producer of pharmaceuticals, hospital
products, animal health items, non prescription
medications and specialty chemicals.
</TABLE>
<PAGE>
PAGE 9
Making the most of your Fund
Average annual total return
(as of Nov. 30, 1995)
Class A
1 year 5 years 10 years
+12.07% +15.04% +14.93%
Total returns for Class A, Class B and Class Y for the period from
March 20, 1995 to Nov. 30, 1995 were +12.33%, +12.68% and +18.42%,
respectively. March 20, 1995 was the inception date for Class B
and Class Y. Total return for Class A is shown for comparative
purposes. The performance of Class B and Class Y will vary from
the performance of Class A based on differences in sales charges
and fees.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures for Class A and Class B reflect the effect 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
One of the best ways to invest in 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...
<PAGE>
PAGE 10
(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.
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.
Class A*
How your $10,000 has grown in IDS Managed Retirement Fund
Average annual total return
(as of Nov. 30, 1995
1 year 5 years 10 years
+12.07% +15.04% +14.93%
(Graph shows performance of Managed Retirement Fund, Lipper Growth
& Income Fund Index, and S&P 500 Stock Index from 1985-1995.
Managed Retirement Fund value at 1995 is shown at $40,246.)
*The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 0, 1995 to Nov. 30, 1995 were +12.33%, +12.68%
and +18.42%, respectively. March 20, 1995 was the inception date
for Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 11/30/84 to 11/30/95. Returns do not
reflect taxes payable on distributions. Reinvestment of all income
and capital gain distributions for the Fund, with a value of
$19,599. Also see "Performance" in the Fund's current prospectus.
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.
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PAGE 11
On the graph above you can see how the Fund's total return compared
to two widely cited performance indexes, the S&P 500 and the Lipper
Growth and Income Fund Index. In comparing Managed Retirement Fund
to the two indexes, you should take into account the fact that the
Fund's performance reflects the maximum sales charge of 5%, while
such charges are not reflected in the performance of the indexes.
If you were actually to buy either individual stocks or growth
mutual funds, any sales charges that you pay would reduce your
total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 12
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, 1995, 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, 1995, and the financial
highlights for each of the years in the ten-year period ended
November 30, 1995. 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, 1995, and the results
of its operations for the year then ended and the changes in its
net assets for each of the years in the two-year period ended
November 30, 1995, 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 5, 1996
<PAGE>
PAGE 13
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Managed Retirement Fund, Inc.
Nov. 30, 1995
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated issuers (identified cost $2,380,682,988) $2,786,872,987
Investments in securities of affiliated issuer (identified cost $28,059,176) 22,595,625
Cash in bank on demand deposit 13,688,838
Dividends and accrued interest receivable 3,989,776
Receivable for investment securities sold 6,544,376
Receivable from investment advisors 105,658
Receivable for foreign currency contracts held, at value (Notes 1 and 4) 408,986
U.S. government securities held as collateral (Note 5) 15,784,373
_____________________________________________________________________________________________________________
Total assets 2,849,990,619
_____________________________________________________________________________________________________________
Liabilities
____________________________________________________________________________________________________________
Payable for investment securities purchased 6,068,700
Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 4) 300,675
Payable upon return of securities loaned (Note 5) 51,725,973
Accrued distribution fee 3,039
Accrued service fee 25,495
Accrued transfer agency fee 20,084
Accrued administrative services fee 4,764
Other accrued expenses 355,503
_____________________________________________________________________________________________________________
Total liabilities 58,504,233
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $2,791,486,386
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value; $ 2,290,926
Additional paid-in capital 2,255,216,223
Excess of distributions over net investment income (353,026)
Accumulated net realized gain (Note 1) 133,488,611
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies (Note 4) 400,843,652
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $2,791,486,386
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $2,601,895,012
Class B $ 74,848,073
Class Y $ 114,743,301
Net asset value per share of outstanding capital stock: Class A shares 213,561,123 $ 12.19
Class B shares 1,769,039 $ 12.16
Class Y shares 8,698,718 $ 12.19
See accompanying notes to financial statements.
/TABLE
<PAGE>
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<TABLE>
<CAPTION>
Statement of operations
IDS Managed Retirement Fund, Inc.
Year ended Nov. 30, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $344,420) $ 32,079,383
Interest 34,813,410
_____________________________________________________________________________________________________________
Total income 66,892,793
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 11,056,179
Distribution fee
Class A 441,362
Class B 187,426
Transfer agency fee 3,841,236
Incremental transfer agency fee--Class B 5,220
Service fee
Class A 3,022,101
Class B 43,443
Administrative services fee 578,513
Compensation of directors 55,350
Compensation of officers 22,411
Custodian fees 699,087
Postage 308,813
Registration fees 211,989
Reports to shareholders 233,503
Audit fees 33,500
Administrative 23,984
Other 22,859
_____________________________________________________________________________________________________________
Total expenses 20,786,976
Earnings credits on cash balances (Note 2) (24,700)
_____________________________________________________________________________________________________________
Total net expenses 20,762,276
_____________________________________________________________________________________________________________
Investment income -- net 46,130,517
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including loss of $2,367,285 from foreign currency transactions) (Note 3) 124,423,092
Net realized loss on sale of affiliated securities (7,766,937)
Net realized gain on closed or expired option contracts written (Note 7) 1,020,927
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 117,677,082
Net change in unrealized appreciation or depreciation of investments and
on translation of assets and liabilities in foreign currencies 256,569,178
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 374,246,260
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $420,376,777
_____________________________________________________________________________________________________________
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,
_____________________________________________________________________________________________________________
Operations and distributions 1995 1994
_____________________________________________________________________________________________________________
Investment income--net $ 46,130,517 $ 23,665,296
Net realized gain on investments and foreign currency 117,677,082 161,244,633
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 256,569,178 (173,232,646)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 420,376,777 11,677,283
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (34,692,244) (21,173,864)
Class B (200,233) --
Class Y (1,230,979) --
Net realized gain
Class A (160,120,061) (137,757,653)
Excess distribution of realized gain (Note 1)
Class A -- (1,302,096)
_____________________________________________________________________________________________________________
Total distributions (196,243,517) (160,233,613)
_____________________________________________________________________________________________________________
Capital share transactions (Note 6)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 417,761,343 612,687,152
Class B shares 72,721,658 --
Class Y shares 111,374,713 --
Reinvestment of distributions at net asset value
Class A shares 193,441,984 159,258,078
Class B shares 198,523 --
Class Y shares 1,230,979 --
Payments for redemptions
Class A shares (460,211,059) (216,560,194)
Class B shares (Note 2) (1,890,237) --
Class Y shares (18,871,278) --
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 315,756,626 555,385,036
_____________________________________________________________________________________________________________
Total increase in net assets 539,889,886 406,828,706
Net assets at beginning of year 2,251,596,500 1,844,767,794
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed (excess of distributions over)
net investment income of $(353,026) and $5,699,238) $2,791,486,386 $2,251,596,500
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<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.
The Fund offers Class A, Class B and Class Y shares. Class A shares
are sold with a front-end sales charge. Class B shares, which the
Fund began offering on March 20, 1995, may be subject to a
contingent deferred sales charge. Class B shares automatically
convert to Class A after eight years. Class Y shares, which the
Fund also began offering on March 20, 1995, have no sales charge
and are offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation
and other rights, and the same terms and conditions, except that
the level of distribution fee, transfer agency fee and service fee
(class specific expenses) differs among classes. Income, expenses
(other than class specific expenses) and realized and unrealized
gains or losses on investments are allocated to each class of
shares based upon its relative net assets.
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<PAGE>
PAGE 17
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.
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 possibility that
there may be an illiquid market and that a change in the value of
the contract or option may not 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.
The Fund may enter into forward foreign currency exchange contracts
for operational purposes and to protect against adverse exchange
rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the Fund and the
resulting unrealized appreciation or depreciation are determined
using foreign currency exchange rates from an independent pricing
service. The Fund is subject to the credit risk that the other
party will not complete the obligations of the contract.
<PAGE>
PAGE 18
Federal taxes
Since the Fund's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to shareholders, no
provision for income or excise taxes is required.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes primarily because
of the deferral of losses on certain futures contracts, the
recognition of certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred due to "wash
sale" transactions. The character of distributions made during the
year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax
purposes. The effect on dividend distributions of certain book-to-
tax differences is presented as "excess distributions" in the
statement of changes in net assets. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized
gains (losses) were recorded by the Fund.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, undistributed net investment
income has been decreased by
$16,059,325 and accumulated net realized gain has been increased by
$16,068,293, resulting in a net reclassification adjustment to
decrease additional paid-in-capital by $8,968.
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 or upon receipt of ex-dividend notification in the case of
certain foreign securities. Interest income, including level-yield
amortization of premium and discount, is accrued daily.
___________________________________________________________________
2. Expenses and sales charges
Under terms of a prior agreement that ended March 19, 1995, the
Fund paid AEFC a fee for managing its investments, recordkeeping
and other specified services. The fee was 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 was 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 was 0.08% of the Fund's average daily net assets after<PAGE>
PAGE 19
deducting 1% from the performance difference. If the performance
difference is less than 1%, the adjustment will be zero. The
adjustment decreased the fee by $1,438,305 for the year ended Nov.
30, 1995.
Also under terms of the prior agreement, the Fund paid AEFC 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.
Effective March 20, 1995, when the Fund began offering multiple
classes of shares, the Fund entered into agreements with AEFC for
managing its portfolio, providing administrative services and
serving as transfer agent as follows: Under its Investment
Management Services Agreement, AEFC determines which securities
will be purchased, held or sold. The management fee is a percentage
of the Fund's average daily net assets in reducing percentages from
0.53% to 0.40% annually.
Under an Administrative Services Agreement, the Fund pays AEFC for
administration and accounting services at a percentage of the
Fund's average daily net assets in reducing percentages from 0.04%
to 0.02% annually.
Under a separate Transfer Agency Agreement, AEFC maintains
shareholder accounts and records. The Fund pays AEFC an annual fee
per shareholder account for this service as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the Fund entered into agreements
with American Express Financial Advisors Inc. for distribution and
shareholder servicing-related services as follows: Under a Plan and
Agreement of Distribution, the Fund pays a distribution fee at an
annual rate of 0.75% of the Fund's average daily net assets
attributable to Class B shares for distribution-related services.
Under a Shareholder Service Agreement, the Fund pays a fee for
service provided to shareholders by financial advisors and other
servicing agents. The fee is calculated at a rate of 0.175% of the
Fund's average daily net assets attributable to Class A and Class B
shares.
AEFC will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges received by American Express Financial Advisors Inc.
for distributing Fund shares were $7,327,074 for Class A and
$14,819 for Class B for the year ended Nov. 30, 1995. The Fund also
pays custodian fees to American Express Trust Company, an affiliate
of AEFC.
During the year ended Nov. 30, 1995, the Fund's custodian and
transfer agency fees were reduced by $24,700 as a result of
earnings credits from overnight cash balances.
PAGE 20
The Fund has a retirement plan for its independent directors. Upon
retirement, directors receive monthly payments equal to one-half of
the retainer fee for as many months as they served as directors up
to 120 months. There are no death benefits. The plan is not funded,
but the Fund recognizes the cost of payments during the time the
directors serve on the board. The retirement plan expense amounted
to $21,379 for the year ended Nov. 30, 1995.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $2,014,425,253 and
$1,977,394,607, respectively, for the year ended Nov. 30, 1995.
Realized gains and losses are determined on an identified cost
basis.
Brokerage commissions paid to brokers affiliated with AEFC were
$220,073 for the year ended Nov. 30, 1995.
___________________________________________________________________
4. Foreign currency contracts
At Nov. 30, 1995, the Fund had entered into eight foreign currency
exchange contracts that obligate the Fund to deliver currencies at
specified future dates. The unrealized appreciation and/or
depreciation on these contracts is included in the accompanying
financial statements. The terms of the open contracts are as
follows:<PAGE>
PAGE 21
</TABLE>
<TABLE>
<CAPTION>
Exchange dateCurrency to beCurrency to beUnrealizedUnrealized
delivered receivedappreciationdepreciation
______________________________________________________________________________________
<S> <C> <C> <C> <C>
Dec. 1, 1995110,972 69,161 $ 630 $ --
Dutch Guilder U.S. Dollar
Dec. 1, 19953,559,043 475,173 2,838 --
Mexican Peso U.S. Dollar
Dec. 5, 1995251,717 155,390 -- 57
Dutch Guilder U.S. Dollar
Dec. 6, 199518,100,000 12,782,215 265,791 --
Deutsche Mark U.S. Dollar
Dec. 6, 1995115,000,00017,243,965 -- 300,618
Swedish Krona U.S. Dollar
Dec. 7, 1995920,000,000 7,492,162 30,173 --
Spanish Peseta U.S. Dollar
Dec. 14, 19953,700,000 5,747,950 84,397 --
British Pound U.S. Dollar
Dec. 29, 1995117,000,00017,841,077 25,157 --
Swedish Krona U.S. Dollar
__________________
$408,986 $300,675
</TABLE>
________________________________________________________
5. Lending of portfolio securities
At Nov. 30, 1995, securities valued at $49,465,887 were
on loan to brokers. For collateral, the Fund received
$35,941,600 in cash and government securities valued at
$15,784,373. Income from securities lending amounted to
$607,134 for the year ended Nov. 30, 1995. 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.
<PAGE>
PAGE 22
6.Capital share transactions
Transactions in shares of capital stock for the years
indicated are as follows:
<TABLE>
<CAPTION>
Year ended Nov. 30, 1995 Year ended
11/30/94
Class A Class B* Class Y* Class A
______________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 37,660,154 6,299,264 10,940,208 52,780,284
Issued for reinvested
distributions 18,500,738 16,962 108,792 13,541,661
Redeemed (42,073,334) (161,484) (1,638,669) (18,632,894)
______________________________________________________________________________
Net increase 14,087,558 6,154,742 9,410,331 47,689,051
______________________________________________________________________________
*Inception date was March 20, 1995.
</TABLE>
___________________________________________________________________
7. Option contracts written
The number of contracts and premium amounts associated with option
contracts
written is as follows:
<TABLE>
<CAPTION>
Year ended Nov. 30, 1995
______________________________________________________
Puts Calls
Contracts Premium Contracts Premium
______________________________________________________________________________
<S> <C> <C> <C> <C>
Balance Nov. 30, 1994 1,500 $ 82,122 8,074 $555,355
Opened 2,750 255,931 14,000 922,171
Closed -- -- (4,289)(265,292)
Exercised (1,250) (192,181) (6,000) (569,231)
Expired (3,000) (145,872) (11,785) (643,003)
______________________________________________________________________________
Balance Nov. 30, 1995 -- $ -- -- $ --
______________________________________________________________________________
</TABLE>
___________________________________________________________________
8. Illiquid securities
At Nov. 30, 1995, investments in securities included issues that
are illiquid. The Fund currently limits investments in illiquid
securities to 10% of the net assets, at market value, at the time
of purchase. The aggregate value of such securities at Nov. 30,
1995 was $10,203,200, representing 0.4% of the 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.
__________________________________________________________________
9. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on pages 6 and 7 of the prospectus.<PAGE>
PAGE 23
<TABLE>
<CAPTION>
Investment in securities
IDS Managed Retirement Fund, Inc. (Percentages represent value of
Nov. 30, 1995 investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (81.4%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (0.8%)
Boeing 110,000 $ 8,016,250
General Motors Cl H 312,500 14,843,750
_______________
Total 22,860,000
_____________________________________________________________________________________________________________________________
Airlines (0.7%)
Southwest Airlines 750,000 18,750,000
_____________________________________________________________________________________________________________________________
Automotive & related (0.8%)
General Motors 200,000 9,700,000
Hayes Wheels Intl 500,000 13,375,000
______________
Total 23,075,000
_____________________________________________________________________________________________________________________________
Banks and savings & loans (2.4%)
Bank of Boston 200,000 9,275,000
Citicorp 350,000 24,762,500
First Chicago 225,000 15,637,500
NationsBank 250,000 17,843,751
______________
Total 67,518,751
_____________________________________________________________________________________________________________________________
Building materials (2.3%)
Georgia Pacific 200,000(c) 15,550,000
Masco 1,000,000 29,500,000
Weyerhaeuser 400,000 18,100,000
______________
Total 63,150,000
_____________________________________________________________________________________________________________________________
Chemicals (1.9%)
IMC Global 150,000 11,606,250
Praxair 400,000 11,650,000
Rohm & Haas 500,000 30,125,000
______________
Total 53,381,250
_____________________________________________________________________________________________________________________________
Communications equipment (3.5%)
AirTouch Communications 1,500,000(b) 43,687,500
Alltell 700,000 20,650,000
<PAGE>
PAGE 24
MFS Communications 308,320(b) 14,028,560
Scientific Atlanta 1,200,000 19,050,000
______________
Total 97,416,060
_____________________________________________________________________________________________________________________________
Computers & office equipment (10.2%)
Cisco Systems 1,000,000(b) 84,125,000
Compaq Computer 1,100,000(b) 54,450,000
Computer Associates Intl 1,000,000 65,500,000
General Motors Cl E 250,000 12,625,000
Microsoft 250,000(b) 21,781,250
Pitney Bowes 750,000 33,562,500
Xerox 100,000 13,712,500
______________
Total 285,756,250
____________________________________________________________________________________________________________________________
Electronics (1.5%)
Applied Materials 250,000(b) 12,156,250
Intel 500,000 30,437,500
_____________
Total 42,593,750
_____________________________________________________________________________________________________________________________
Energy (2.6%)
Amoco 500,000 33,875,000
Murphy Oil 500,000 19,687,500
Occidental Petroleum 800,000 17,700,000
______________
Total 71,262,500
_____________________________________________________________________________________________________________________________
Energy equipment & services (0.4%)
Camco 500,000 11,750,000
_____________________________________________________________________________________________________________________________
Financial services (2.6%)
BankAmerica 1,000,000 63,625,000
Storage USA REIT 250,000 7,593,750
______________
Total 71,218,750
_____________________________________________________________________________________________________________________________
Health care (9.0%)
Abbott Laboratories 400,000 16,250,000
Amgen 1,000,000(b) 49,625,000
Forest Labs 250,000(b) 10,625,000
Johnson & Johnson 300,000 25,987,500
Lilly (Eli) 300,000 29,850,000
Medtronic 800,000 43,900,000
Merck 550,000 34,031,250
Pfizer 700,000 40,600,000
______________
Total 250,868,750
______________________________________________________________________________________________________________________________
Industrial equipment & services (2.9%)
Amer Standard 500,000(b) 15,000,000
Caterpillar 600,000 36,825,000
Integrated Process Equipment 500,000(b) 15,375,000<PAGE>
PAGE 25
Lincoln Electric 160,000 3,920,000
York Intl 250,000 11,187,500
______________
Total 82,307,500
_____________________________________________________________________________________________________________________________
Industrial transportation (0.6%)
Union Pacific 250,000 16,937,500
_____________________________________________________________________________________________________________________________
Insurance (3.2%)
General Re 200,000 29,925,000
TIG Holdings 1,000,000 27,000,000
UNUM 600,000 32,475,000
______________
Total 89,400,000
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (4.7%)
Circus Circus Enterprises 1,000,000(b) 27,750,000
Disney (Walt) 500,000 30,062,500
Intl Game Technology 800,000 9,900,000
King World Productions 700,000(b) 27,737,500
MGM Grand 1,000,000(b) 25,875,000
Primadonna Resorts 500,000(b) 8,625,000
______________
Total 129,950,000
_____________________________________________________________________________________________________________________________
Media (2.4%)
Comcast Cl A 500,000 9,875,000New
World Communications Group 700,000(b) 12,250,000
Tele-Communications Cl A 500,000(b) 9,250,000
Time Warner 750,000 30,000,000
US WEST Media Group 250,000(b) 4,500,000
______________
Total 65,875,000
_____________________________________________________________________________________________________________________________
Metals (3.9%)
Alumax 1,200,000(b) 39,900,000
Bethlehem Steel 1,000,000(b) 14,000,000
Freeport McMoRan Copper Cl B 421,040 11,420,710
LTV 1,000,000(b) 14,500,000
Newmont Mining 500,000 21,562,500
Stillwater Mining 500,000(b) 8,562,500
______________
Total 109,945,710
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.7%)
General Electric 700,000 47,075,000
_____________________________________________________________________________________________________________________________
Paper & packaging (1.1%)
Crown Cork & Seal 750,000(b) 31,406,250
_____________________________________________________________________________________________________________________________
Retail (5.3%)
Best Buy 500,000(b) 10,250,000
Dillard Dept Store Cl A 750,000 21,656,250
Duracell Intl 500,000 26,500,000
Home Depot 1,000,000 44,375,000
Nordstrom 550,000 21,587,500
Office Depot 1,000,000(b) 24,500,000
______________
Total 148,868,750<PAGE>
PAGE 26
_____________________________________________________________________________________________________________________________
Utilities-electric (0.4%)
FPL Group 125,000 5,421,875
Illinova 200,000 5,675,000
______________
Total 11,096,875
_____________________________________________________________________________________________________________________________
Utilities-gas (0.8%)
Enron 600,000 22,500,000
_____________________________________________________________________________________________________________________________
Utilities-telephone (1.4%)
MCI Communications 800,000 21,400,000
Sprint 250,000 10,000,000
US WEST 250,000 7,812,500
_____________
Total 39,212,500
_____________________________________________________________________________________________________________________________
Foreign (14.3%)(d)
Australia (1.4%)
News Corporation 3,018,844 14,427,055
Woodside Petroleum 5,000,000 24,820,000
_____________
Total 39,247,055
_____________________________________________________________________________________________________________________________
Bermuda (0.7%)
Pacific Basin 600,000 8,287,500
Tempest Reinsurance Private 80,000(b,e) 10,203,200
____________
Total 18,490,700
_____________________________________________________________________________________________________________________________
Canada (2.8%)
Barrick Gold 700,000(c) 18,462,500
Northern Telecom 1,000,000 40,375,000
Seagram 500,000 18,250,000
______________
Total 77,087,500
_____________________________________________________________________________________________________________________________
Denmark (0.5%)
Tele Danmark 500,000 13,937,500
_____________________________________________________________________________________________________________________________
Finland (0.7%)
Kemira ADR 450,000(f) 7,537,425
Nokia Preferred 200,000 10,850,000
____________
Total 18,387,425
______________________________________________________________________________________________________________________________
Germany (0.6%)
Lufthansa 125,000 16,594,625
_____________________________________________________________________________________________________________________________
Hong Kong (0.7%)
Consolidated Electric 6,000,000 9,810,000
Natl Mutual 13,000,000(b) 9,997,000
______________
Total 19,807,000
_____________________________________________________________________________________________________________________________
India (0.1%)
Tata Engineering & Locom GDR 220,000(c,f) 2,475,000<PAGE>
PAGE 27
_____________________________________________________________________________________________________________________________
Italy (0.3%)
Telecom Italia 7,000,000(b) 9,520,000
_____________________________________________________________________________________________________________________________
Mexico (0.1%)
Grupo Financial Banamex Cl B 1,050,000(b) 1,610,878
_____________________________________________________________________________________________________________________________
Netherlands (0.5%)
EVC Intl 149,200(f) 4,026,311
Schlumberger 150,000 9,525,000
______________
Total 13,551,311
_____________________________________________________________________________________________________________________________
Portugal (0.1%)
Portucell 680,000(b,c) 4,038,005
_____________________________________________________________________________________________________________________________
Spain (1.1%)
Telefonica de Espana 750,000 31,125,000
_____________________________________________________________________________________________________________________________
Sweden (1.3%)
Autoliv 210,000 12,432,630
Ericsson (LM) Tel ADR 7,500,000 23,906,250
______________
Total 36,338,880
_____________________________________________________________________________________________________________________________
United Kingdom (3.4%)
British Petro ADR 101,063 9,664,149
General Cable 1,200,000(b) 17,400,000
Natl Power 750,000(c) 8,625,000
NYNEX Cable Communications Group 1,000,000(b) 19,500,000
PowerGen 525,000(c) 7,251,563
Telewest Communications 300,000(b,c) 7,650,000
TLG 3,043,050(f) 7,686,744
Videotron Holdings ADR 1,250,000(b) 18,281,250
______________
Total 96,058,706
_____________________________________________________________________________________________________________________________
Total common stocks of unaffiliated issuers
(Cost: $1,865,204,283) $2,272,445,731
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Preferred stock & other (0.8%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
MFS Communications
2.68% Cv 500,000 21,375,000
Pacific Basin
Warrants 275,000 171,875
_____________________________________________________________________________________________________________________________
Total preferred stock & other
(Cost: $17,542,450) $ 21,546,875
_____________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 28
<TABLE>
<CAPTION>
Bonds (2.7%)
_____________________________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Domestic (1.4%)
Equitable Companies
6.125% Cv 2024 $13,500,000 $ 15,052,500
Intl Cable Telephone
7.25% Cv 2005 15,500,000 17,534,375
Medical Care Intl
6.75% Cv 2006 6,500,000(f) 6,597,500
______________
Total 39,184,375
_____________________________________________________________________________________________________________________________
Foreign (1.3%)(d)
Banco Nacional de Mexico
(U.S. Dollar)
7% Cv 1999 8,000,000(f) 6,150,000
Cemex
(U.S. Dollar)
4.25% Cv 1997 10,000,000(c,f) 8,350,000
Mexican Cetes
(Mexican Peso)
Zero Coupon
65.12% Treasury Bill 1996 34,284,240(g) 4,262,793
Roche Holdings
(U.S. Dollar)
Zero Coupon
7% Cv 2010 30,000,000(g) 13,050,000
Renong Berhad Euro
(U.S. Dollar)
2.50% Cv 2005 5,000,000 5,487,500
______________
Total 37,300,293
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $74,804,498) $ 76,484,668
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Option purchased (--%)
_____________________________________________________________________________________________________________________________
Issuer Number of Exercise Expiration Value(a)
contracts price date
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Put
S&P 500 Stock Index 5,000 $555 Dec. 1995$ 125,000
_____________________________________________________________________________________________________________________________
Total option purchased
(Cost: $6,769,999) $ 125,000
_____________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 29
<TABLE>
<CAPTION>
Short-term securities (14.9%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (0.5%)
Federal Home Loan Bank
Disc Note
12-04-95 5.62% $ 4,100,000 $ 4,098,087
Federal Home Loan Mtge
Disc Notes
12-18-95 5.70% 2,100,000 2,094,367
12-18-95 5.71% 8,400,000 8,377,430
_____________
Total 14,569,884
_____________________________________________________________________________________________________________________________
Certificate of Deposit (0.2%)
NBD Yankee
12-27-95 5.76% 6,300,000 6,299,996
_____________________________________________________________________________________________________________________________
Commercial paper (13.7%)
Alabama Power
12-12-95 5.74 9,500,000 9,483,454
Albertson's
01-12-96 5.75 5,715,000 5,676,929
ABN Amro North
12-06-95 5.76 4,400,000 4,396,334
Amer General Finance
12-15-95 5.76 10,100,000 10,077,533
Amgen
01-19-96 5.76 7,100,000 7,041,047
Aon
12-11-95 5.75 6,079,000 6,069,341
02-13-96 5.73 4,400,000 4,345,917
BBV Finance (Delaware)
01-26-96 5.77 7,400,000 7,329,897
01-26-96 5.78 6,000,000 5,943,160
CAFCO
12-05-95 5.74 3,900,000 3,897,530
01-25-96 5.75 6,000,000 5,945,077
Campbell Soup
12-28-95 5.76 7,700,000 7,663,069
Cargill
01-04-96 5.79 2,500,000 2,485,298
01-29-96 5.77 10,400,000 10,302,676
Ciesco
12-06-95 5.74 3,300,000 3,297,383
01-09-96 5.79 15,000,000 14,906,562
Colgate Palmolive
12-01-95 5.71 8,000,000(h) 8,000,000
12-04-95 5.72 10,100,000(h) 10,094,036
CPC Intl
12-07-95 5.77 6,313,000(h) 6,306,971<PAGE>
PAGE 30
Dean Witter, Discover & Co.
01-11-96 5.79 10,000,000 9,930,094
Deutsche Bank Financial
01-05-96 5.78 3,300,000 3,280,015
01-16-96 5.77 8,300,000 8,239,442
Fleet Funding
01-10-96 5.77 6,700,000(h) 6,654,230
Goldman Sachs Group
02-09-96 5.79 8,000,000 7,906,911
Harris Trust
12-07-95 5.75 4,600,000 4,599,980
Kellogg
12-20-95 5.75 2,666,000 2,657,952
Kredietbank North Amer Finance
01-12-96 5.80 8,500,000 8,439,940
Metlife Funding
12-18-95 5.75 6,200,000 6,183,253
Motorola
12-21-95 5.73 7,500,000 7,476,250
12-29-95 5.75 15,525,000 15,455,931
Natl Bank of Detroit
12-27-95 5.75 8,000,000 7,999,926
Natl Bank of Detroit Canada
12-11-95 5.75 8,300,000 8,286,812
Norfolk Southern
12-13-95 5.70 1,100,000(h) 1,097,521
Northern States Power
12-19-95 5.74 5,500,000 5,484,325
12-26-95 5.75 6,800,000 6,772,989
01-25-96 5.75 8,500,000 8,425,979
PACCAR Financial
02-23-96 5.73 6,000,000 5,916,417
Penney (JC) Funding
12-14-95 5.75 5,700,000 5,688,247
02-22-96 5.72 10,800,000 10,651,320
Pfizer
12-07-95 5.74 9,000,000(h) 8,991,450
Pioneer
01-10-96 5.75 8,100,000 8,048,610
Reed Elsevier
01-02-96 5.78 4,700,000(h) 4,676,020
01-08-96 5.78 6,000,000(h) 5,963,773
SAFECO
01-22-96 5.78 2,000,000 1,983,200
01-23-96 5.76 4,700,000 4,658,389
01-31-96 5.77 7,300,000 7,225,824
02-07-96 5.76 6,000,000 5,934,450
St. Paul Companies
01-31-96 5.76 6,200,000 6,137,001
Sandoz
02-21-96 5.72 4,000,000(h) 3,945,589
Siemens
01-26-96 5.75 3,000,000 2,973,400
Societe Generale
02-28-96 5.72 10,000,000 9,852,500
Southern California Gas
01-31-96 5.75 9,800,000 9,700,421
USAA Capital
12-08-95 5.73 10,000,000 9,988,955<PAGE>
PAGE 31
USL Capital
01-26-96 5.80 7,600,000 7,528,003
Wachovia Bank
12-13-95 5.74 4,400,000 4,400,000
01-11-96 5.77 6,100,000 6,100,000
_______________
Total 382,517,333
____________________________________________________________________________________________________________________________
Letters of credit (0.5%)
Chemical Bank-
Somerset Rail
01-10-96 5.79 6,000,000 5,961,667
First Natl Bank Chicago-
Commonwealth Fuel
02-05-96 5.75 7,000,000 6,921,833
_______________
Total 12,883,500
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $416,361,758) $ 416,270,713
_____________________________________________________________________________________________________________________________
Total investments in securities of unaffiliated issuers
(Cost: $2,380,682,988) $2,786,872,987
_____________________________________________________________________________________________________________________________
</TABLE>
Investment in securities of affiliated issuers (i)
<TABLE>
<CAPTION>
Common stock (0.8%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
China North Inds 18,500,000(b) 16,280,000
Republic Engineered Steels 1,175,000(b) 6,315,625
_____________________________________________________________________________________________________________________________
Total investments in securities of affiliated issuers
(Cost: $28,059,176) $ 22,595,625
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $2,408,742,164)(j) $2,809,468,612
_____________________________________________________________________________________________________________________________
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) Identifies issues considered to be illiquid (see Note 8 to
the financial statements). Information concerning such security holdings at Nov. 30, 1995,
is as follows:
Security Acquisition Cost
date
______________________________________________________________________
Tempest Reinsurance Private 09-13-93 $8,000,000<PAGE>
PAGE 32
(f) 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.
(g) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition.
(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, 1995, the cost of securities for federal income tax purposes was $2,408,707,456 and the aggregate gross
unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation$463,080,468
Unrealized depreciation (62,319,312)
_____________________________________________________________
Net unrealized appreciation $400,761,156
_____________________________________________________________
</TABLE>
<PAGE>
PAGE 33
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 34
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
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
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
<PAGE>
PAGE 35
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 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
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our 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 Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
<PAGE>
PAGE 36
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.
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 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
<PAGE>
PAGE 37
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.
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 38
Federal income tax information
IDS Managed Retirement Fund, Inc.
___________________________________________________________________
The Fund is required by the Internal Revenue Code of
1986 to tell its shareholders about the tax treatment
of the dividends it pays during its fiscal year.
Some of the dividends listed below were reported to
you on a Form 1099-DIV, Dividends and Distributions,
last January. Dividends paid to you since the end of
last year will be reported to you on a tax statement
sent next January. Shareholders should consult a tax
advisor on how to report distributions for state and
local purposes.
IDS Managed Retirement Fund, Inc.
Fiscal year ended Nov. 30, 1995
Class A
Income distributions
taxable as dividend income,
52.4% qualifying for deduction by corporations.
Payable date Per share
Dec. 29, 1994 $0.43605
March 30, 1995 0.04748
June 28, 1995 0.03745
Sept. 28, 1995 0.04257
Total $0.56355
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 29, 1994 $0.39855
Total distributions $0.96210
The distribution of $0.83460 per share, payable
Dec. 29, 1994, consisted of $0.03750 derived from
net investment income, $0.39855 from net short-term
capital gains (a total of $0.43605 taxable as dividend
income) and $0.39855 from net long-term capital gains.
<PAGE>
PAGE 39
Class B
Income distributions
taxable as dividend income,
52.4% qualifying for deduction by corporations.
Payable date Per share
March 30, 1995 $0.04683
June 28, 1995 0.02681
Sept. 28, 1995 0.02726
Total distributions $0.10090
Class Y
Income distributions
taxable as dividend income,
52.4% qualifying for deduction by corporations.
Payable date Per share
March 30, 1995 $0.04803
June 28, 1995 0.04162
Sept. 28, 1995 0.04843
Total distributions $0.13808
<PAGE>
PAGE 40
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 41
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 a 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.
