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011 A00AA01 AMERICAN EXPRESS FINANCIAL ADVISORS INC.
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<PAGE> PAGE 2
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<PAGE> PAGE 8
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080 A00AA00 RELIANCE INSURANCE COMPANY
080 C00AA00 2500
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SIGNATURE LESLIE L. OGG
TITLE VICE PRESIDENT
<TABLE> <S> <C>
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<NUMBER> 1
<NAME> AXP MANAGED ALLOCATION FUND CLASS A
<S> <C>
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> AXP MANAGED ALLOCATION FUND CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1999
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<NAME> AXP MANAGED ALLOCATION FUND CLASS Y
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<CAPTION>
#113167 v01
SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS MANAGED ALLOCATION FUND
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
<S> <C> <C> <C>
1. Election of Board members.
H. Brewster Atwater, Jr.
Affirmative 127,957,844.354 51.766% 98.033%
Withhold 2,567,745.511 1.038% 1.967%
TOTAL 130,525,589.865 52.804% 100.000%
Arne H. Carlson
Affirmative 127,690,662.201 51.658% 97.828%
Withhold 2,834,927.664 1.146% 2.172%
TOTAL 130,525,589.865 52.804% 100.000%
Lynne V. Cheney
Affirmative 127,856,433.627 51.725% 97.955%
Withhold 2,669,156.238 1.079% 2.045%
TOTAL 130,525,589.865 52.804% 100.000%
William H. Dudley
Affirmative 127,962,807.310 51.768% 98.037%
Withhold 2,562,782.555 1.036% 1.963%
TOTAL 130,525,589.865 52.804% 100.000%
David R. Hubers
Affirmative 127,992,936.483 51.780% 98.060%
Withhold 2,532,653.382 1.024% 1.940%
TOTAL 130,525,589.865 52.804% 100.000%
Heinz F. Hutter
Affirmative 127,910,681.352 51.747% 97.997%
Withhold 2,614,908.513 1.057% 2.003%
TOTAL 130,525,589.865 52.804% 100.000%
Anne P. Jones
Affirmative 127,903,957.825 51.744% 97.991%
Withhold 2,621,632.040 1.060% 2.009%
TOTAL 130,525,589.865 52.804% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS MANAGED ALLOCATION FUND
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
William R. Pearce
Affirmative 127,869,216.608 51.730% 97.965%
Withhold 2,656,373.257 1.074% 2.035%
TOTAL 130,525,589.865 52.804% 100.000%
Alan K. Simpson
Affirmative 127,805,209.351 51.704% 97.916%
Withhold 2,720,380.514 1.100% 2.084%
TOTAL 130,525,589.865 52.804% 100.000%
John R. Thomas
Affirmative 127,980,392.608 51.775% 98.050%
Withhold 2,545,197.257 1.029% 1.950%
TOTAL 130,525,589.865 52.804% 100.000%
C. Angus Wurtele
Affirmative 127,925,150.945 51.752% 98.008%
Withhold 2,600,438.920 1.052% 1.992%
TOTAL 130,525,589.865 52.804% 100.000%
2. Ratify the selection of independent auditors
Affirmative 126,755,540.908 51.279% 97.112%
Against 1,541,339.304 .624% 1.181%
Abstain 2,228,709.653 .901% 1.707%
TOTAL 130,525,589.865 52.804% 100.000%
3. Change the Fund name from "IDS" to "AXP"
Affirmative 117,784,009.812 47.650% 90.238%
Against 10,167,065.696 4.113% 7.790%
Abstain 2,574,514.357 1.041% 1.972%
TOTAL 130,525,589.865 52.804% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 3
IDS FUNDS
IDS MANAGED ALLOCATION FUND
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
6. Changes to investment policies
6.1 Prohibited conflict of interest
Affirmative 119,576,577.627 48.375% 91.969%
Against 5,566,729.964 2.252% 4.282%
Abstain 4,874,864.274 1.972% 3.749%
TOTAL 130,018,171.865 52.599% 100.000%
Not Voting 507,418.000
6.2 Senior securities
Affirmative 119,561,396.021 48.369% 91.957%
Against 5,503,634.284 2.226% 4.233%
Abstain 4,953,141.560 2.004% 3.810%
TOTAL 130,018,171.865 52.599% 100.000%
Not Voting 507,418.000
7. Approve a Subadvisory Agreement
Affirmative 118,746,949.823 48.039% 90.976%
Against 5,984,314.306 2.421% 4.585%
Abstain 5,794,325.736 2.344% 4.439%
TOTAL 130,525,589.865 52.804% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 4
IDS FUNDS
IDS MANAGED ALLOCATION FUND
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 247,186,867.749
VOTED SHARES 130,525,589.865
PERCENT VOTED 52.804%
C48
SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS MANAGED ALLOCATION FUND CLASS B
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
4. Approve a new shareholder service and distribution plan
Affirmative 11,362,825.780 46.038% 90.450%
Against 764,032.017 3.096% 6.082%
Abstain 435,647.447 1.765% 3.468%
TOTAL 12,562,505.244 50.899% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS MANAGED ALLOCATION FUND CLASS B
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 24,681,393.468
VOTED SHARES 12,562,505.244
PERCENT VOTED 50.899%
C48
SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS MANAGED ALLOCATION FUND CLASSES A & B
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
4. Approve a new shareholder service and distribution plan
Affirmative 112,029,345.119 47.212% 88.784%
Against 9,761,672.369 4.113% 7.736%
Abstain 4,391,016.196 1.851% 3.480%
TOTAL 126,182,033.684 53.176% 100.000%
Not Voting 507,406.000
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS MANAGED ALLOCATION FUND CLASSES A & B
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 237,292,207.280
VOTED SHARES 126,689,439.684
PERCENT VOTED 53.390%
C48
</TABLE>
Exhibit 77D
At Board of Directors meetings held on September 8-9, 1999, the following
investment policy was eliminated:
Under normal market conditions, the Fund does not intend to commit more than 5%
of its total assets to when-issued securities or forward commitments.
Independent Auditors' Report on Internal Accounting Control
The Board of Directors and Shareholders
AXP Managed Series, Inc.:
In planning and performing our audits of the financial statements of AXP Managed
Allocation Fund (fund within AXP Managed Series, Inc.) for the year ended
September 30, 1999, we considered its internal control, including control
activities for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements
and to comply with the requirements of Form N-SAR, not to provide assurance on
the internal control.
The management of AXP Managed Series, Inc. is responsible for establishing and
maintaining internal control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of control. Generally, controls that are relevant to an audit pertain to
the entity's objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design an
operation may deteriorate.
Our consideration of the internal control would not necessarily disclose all
matters in the internal control that might be material weaknesses under
standards established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that errors or irregularities in amounts that would be material
in relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing
their assigned functions. However, we noted no matters involving the internal
control and its operation, including controls for safeguarding securities,
that we consider to be a material weakness as defined above.
This report is intended solely for the information and use of management, the
Board of Directors of AXP Managed Series, Inc., and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone other than
these specified parties.
KPMG LLP
Minneapolis, Minnesota
November 5, 1999
