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Statement of Additional Information Supplement
- -Oct. 26, 1999*
AXP Federal Income Fund (July 30, 1999) S-6042-20 R (7/99)
(Formerly known as IDS Federal Income Fund)
The non-fundamental investment policy, "The Fund will not buy on margin or sell
short, except the Fund may enter into interest rate futures contracts" in the
Investment Strategies and Types of Investments section is revised to state:
o The Fund will not buy on margin, but it may make margin payments
in connection with interest rate futures contracts.
The table on page 7 that shows various investment strategies and types of
investments that the Fund is allowed to engage in is revised to indicate that
the Fund can engage in short sales.
S-6042- 22 A (10/99)
*Valid until next Statement of Additional Information update
Destroy July 28, 2000
