<PAGE>
PAGE 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 2049
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No.
Post-Effective Amendment No. 9 (File No. 33-30770) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY (ACT OF 1940)
Amendment No. 13 (File No. 811-5897) X
IDS MARKET ADVANTAGE SERIES, INC.
IDS Tower 10, Minneapolis, Minnesota 55440
Leslie L. Ogg - 901 Marquette Avenue South, Suite 2810,
Minneapolis, MN 55402-3268 (612) 330-9283
Approximate Date of Proposed Public Offering:
It is proposed that this filing will become effective (check
appropriate box)
____immediately upon filing pursuant to paragraph (b)
x on April 1, 1994 pursuant to paragraph (b) of rule 485
60 days after filing pursuant to paragraph (a) of Rule 485
on (date) pursuant to paragraph (a) of rule 485
The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to Section
24-f of the Investment Company Act of 1940. Registrant's Rule
24f-2 Notice for the fiscal year ended January 31, 1994 will be
filed on or about April 1, 1994.
<PAGE>
PAGE 2
Cross reference sheet showing location in the prospectus of the
information called for by the items enumerated in Part A and B of
Form N-1A.
Negative answers omitted from prospectus are so indicated.
<TABLE>
<CAPTION>
PART A PART B
Page Number
Page Number in Statement of
Item No. in Prospectus Item No. Additional Information
<C> <C> <C> <C>
1 3 10 25
2 5-6 11 26
3(a) 7 12 NA
(b) NA
(c) 7 13(a) 27-29;47-50
(b) 27-29
(c) 28-29
4(a) 5-6,18-20,21 (d) 30
(b) 18-20
(c) 19-20 14(a) 43-45
(b) 43-45
5(a) 21-22 (c) 46
(b) 24
(c) NA 15(a) NA
(d) 22-23 (b) NA
(e) 23-24 (c) 46
(f) 24
16(a) 24*
5A(a) 7 (b) 40-41
(b) 7 (c) NA
(d) None
6(a) 21 (e) NA
(b) NA (f) 42-43
(c) NA (g) NA
(d) NA (h) 46
(e) 3 (i) 41-42,46
(f) 16
(g) 17 17(a) 29-30
(b) 30-31
7(a) 23-24 (c) 29-30
(b) 9 (d) 30
(c) 13-15 (e) 30
(d) 9-10
(e) NA 18(a) 21*
(f) 23-24 (b) NA
8(a) 11-12 19(a) 34-37
(b) NA (b) 32-34
(c) 10 (c) NA
(d) 13
20 40
9 None
21(a) 41,42
(b) 42
(c) NA
22(a) NA
(b) 31-32
23 46
</TABLE>
*Designates page number in the Prospectus which is hereby
incorporated by reference in the Statement of Additional
Information. <PAGE>
PAGE 3
IDS Blue Chip Advantage Fund
Prospectus
April 1, 1994
The goal of IDS Blue Chip Advantage Fund, a part of IDS Market
Advantage Series, Inc., is to achieve a long-term total return
exceeding that of the U.S. stock market. The fund invests in
common stocks that are included in a broad market index.
This prospectus contains facts that can help you decide if the fund
is the right investment for you. Read it before you invest and
keep it for future reference.
Additional facts about the fund are in a Statement of Additional
Information (SAI), filed with the Securities and Exchange
Commission. The SAI, dated April 1, 1994, is incorporated herein
by reference. For a free copy contact IDS Shareholder Service.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
SHARES IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK, AND SHARES ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY.
IDS Shareholder Service
P.O. Box 534
Minneapolis, MN
55440-0534
612-671-3733
TTY: 800-846-4852
<PAGE>
PAGE 4
Table of contents
The fund in brief
Goal
Types of fund investments
Manager and distributor
Portfolio manager
Sales charge and fund expenses
Sales charge
Operating expenses
Performance
Financial highlights
Total returns
Key terms
How to buy, exchange or sell shares
How to buy shares
How to exchange shares
How to sell shares
Reductions of the sales charge
Waivers of the sales charge
Special shareholder services
Services
Quick telephone reference
Distributions and taxes
Dividend and capital gain distributions
Reinvestments
Taxes
Investment policies
Facts about investments and their risks
Valuing assets
How the fund is organized
Shares
Voting rights
Shareholder meetings
Directors and officers
Investment manager and transfer agent
Distributor
About IDS
General information
<PAGE>
PAGE 5
The fund in brief
Goal
IDS Blue Chip Advantage Fund seeks to provide shareholders with a
long-term total return exceeding that of the U.S. stock market.
Currently, the Standard & Poor's 500 Stock Price Index (S&P 500) is
the market index used to measure the total return of the U.S. stock
market. Because any investment involves risk, achieving this goal
cannot be guaranteed. Only shareholders can change the goal.
Types of fund investments
The fund is a diversified mutual fund that invests in U.S. and
foreign common stocks that are included in the market index. Blue
chip stocks are issued by companies with a market capitalization of
at least $1 billion, an established management, a history of
consistent earnings and a leading position within their respective
industries. The investments are based on industry classifications
and individual stock analysis. The fund also invests in derivative
instruments and money market instruments.
The investments the fund makes may involve certain risks. In
general, blue chip stocks are considered to represent a lower
investment risk and price volatility than non-blue chip stocks.
Manager and distributor
The fund is managed by IDS Financial Corporation (IDS), a provider
of financial services since 1894. IDS currently manages more than
$37 billion in assets for the IDS MUTUAL FUND GROUP. Shares of the
fund are sold through IDS Financial Services Inc., a wholly owned
subsidiary of IDS.
Portfolio manager
Steve Merrell originally joined IDS in 1988 and serves as portfolio
manager. He was appointed portfolio manager of this fund in 1993.
He previously served as this fund's associate portfolio manager.
He also manages fixed-income portfolios for IDS Wealth Management
Services and IDS Advisory Portfolio Management Group. He briefly
left IDS from Sept. 1990 until June 1991, when he was an associate
at J.P. Morgan.
Sales charge and fund expenses
Sales charge
When you buy shares, you pay a maximum sales charge of 5% of the
public offering price. This charge can be reduced, depending on
your total investments in IDS funds. See "Reductions of the sales
charge."
Shareholder transaction expenses
Maximum sales charge on purchases
(as a percent of offering price).................5%
<PAGE>
PAGE 6
Operating expenses
The fund pays certain expenses out of its assets; the expenses are
reflected in the fund's daily share price and dividends, and are
not charged directly to shareholder accounts. The following chart
gives a projection of these expenses -- based on historical
expenses.
Annual fund operating expenses
(% of average daily net assets):
Management fee 0.50%
12b-1 fee 0.10%
Other expenses 0.43%
Total 1.03%
Example: Suppose for each year for the next 10 years, fund
expenses are as above and annual return is 5%. If you sold your
shares at the end of the following years, for each $1,000 invested,
you would pay total expenses of:
1 year 3 years 5 years 10 years
$60 $81 $104 $170
This example does not represent actual expenses, past or future.
Actual expenses may be higher or lower than those shown. Because
the fund pays annual distribution fees, shareholders who stay in
the fund for more than 20 years may indirectly pay an equivalent
of more than a 7.25% sales charge, the maximum permitted by the
National Association of Securities Dealers.
Fund expenses include fees paid to IDS for:
o managing its portfolio, providing investment research and
administrative services
o distribution (known as 12b-1 fees, after the federal rule that
authorizes them)
o transfer agent services, including handling shareholder
accounts and records.
<PAGE>
PAGE 7
Performance
Financial highlights
Fiscal period ended Jan. 31,
Per share income and capital changes*
<TABLE><CAPTION>
1994 1993 1992 1991**
<S> <C> <C> <C> <C>
Net asset value $6.20 $5.96 $5.25 $5.00
beginning of period
Income from investment operations:
Net investment income .10 .10 .12 .10
Net gains on securities .79 .50 .96 .25
(both realized and unrealized)
Total from investment operations .89 .60 1.08 .35
Less distributions:
Dividends from net investment income (.10) (.09) (.12) (.10)
Distributions from realized gains (.41) (.27) (.25) --
Total distributions (.51) (.36) (.37) (.10)
Net asset value, end of period $6.58 $6.20 $5.96 $5.25
Ratios/supplemental data
1994 1993 1992 1991**
<S> <C> <C> <C> <C>
Net assets, $ 148 $ 124 $ 85 $ 36
end of period (in millions)
Ratio of expenses to 1.03% 1.10% 1.11%+ .85%++
average daily net assets
Ratio of net income to average 1.59% 1.63% 2.01%+ 2.93%***++
daily net assets
Portfolio turnover rate (excluding 156% 202% 154% 103%
short-term securities)
Total return**** 14.7% 10.2% 21.2% 7.0%*****
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Commencement of operations. Period from March 5, 1990 to Jan. 31, 1991.
***Adjusted to an annual basis.
****Total return does not reflect payment of a sales charge.
*****Annualized total return is 7.7%
+During the period from Feb. 1, 1991, to May 9, 1991, IDS reimbursed the fund for
expenses in excess of 0.85% of its average daily net assets. Had IDS not done so,
the annual ratios of expenses and net investment income would have been 1.17% and
1.95%, respectively.
++During the period from March 5, 1990, to Jan. 31, 1991, IDS reimbursed the fund for
expenses in excess of 0.85% of its average daily net assets. Had IDS not done so,
the ratios of expenses and net investment income would have been 1.35% and 2.39%,
respectively.
The information in this table has been audited by KPMG Peat Marwick, independent auditors.
The independent auditors' report and additional information about the performance of the fund
is contained in the fund's annual report, which if not included with this prospectus, may be
obtained without charge.</TABLE>
The information in this table has been audited by KPMG Peat
Marwick, independent auditors. The independent auditors' report
and additional information about the performance of the fund is
contained in the fund's annual report which, if not included with
this prospectus, may be obtained without charge.
<PAGE>
PAGE 8
Total returns
Average annual total returns as of Jan. 31, 1994
Purchase 1 year Since
made ago inception*
Blue Chip 9.0% 12.0%
S&P 500 12.9% 13.5%
Cumulative total returns as of Jan. 31, 1994
Purchase 1 year Since
made ago inception*
Blue Chip 9.0% 55.8%
S&P 500 12.9% 64.2%
*March 5, 1990
These examples show total returns from hypothetical investments in
the fund. These returns are compared to those of a popular index
for the same periods.
For purposes of calculation, information about the fund assumes a
sales charge of 5%, makes no adjustments for taxes an investor may
have paid on the reinvested income and capital gains, and covers a
period of widely fluctuating securities prices. Returns shown
should not be considered a representation of the fund's future
performance.
The fund invests in common stocks that may be different from those
in the index. The index reflects reinvestment of all distributions
and changes in market prices, but excludes brokerage commissions or
other fees.
S&P 500, an unmanaged list of common stocks, is frequently used as
a general measure of market performance.
Key terms
Net asset value (NAV) - Value of a single fund share. It is the
total market value of all of a fund's investments and other assets,
less any liabilities, divided by the number of shares outstanding.
The NAV is the price you receive when you sell your shares. It
usually changes from day to day, and is calculated at the close of
business, normally 3 p.m. Central time, each business day (any day
the New York Stock Exchange is open).
<PAGE>
PAGE 9
Public offering price - Price at which you buy shares. It is the
NAV plus the sales charge. NAVs and public offering prices of IDS
funds are listed each day in major newspapers and financial
publications.
Investment income - Dividends and interest earned on securities
held by the fund.
Capital gains or losses - Increase or decrease in value of the
securities the fund holds. Gains are realized when securities that
have increased in value are sold. A fund also may have unrealized
gains or losses when securities increase or decrease in value but
are not sold.
Distributions - Payments to shareholders of two types: investment
income (dividends) and realized net long-term capital gains
(capital gains distributions).
Total return - Sum of all of your returns for a given period,
assuming you reinvest all distributions. Calculated by taking the
total value of shares you own at the end of the period (including
shares acquired by reinvestment), less the price of shares you
purchased at the beginning of the period.
Average annual total return - The annually compounded rate of
return over a given time period (usually two or more years) --
total return for the period converted to an equivalent annual
figure.
How to buy, exchange or sell shares
How to buy shares
If you're investing in this fund for the first time, you'll need to
set up an account. Your financial planner will help you fill out
and submit an application. Once your account is set up, you can
choose among several convenient ways to invest.
Important: When opening an account, you must provide IDS with your
correct Taxpayer Identification Number (Social Security or Employer
Identification Number). See "Distributions and taxes."
When you buy shares for a new or existing account, the price you
pay per share is determined at the close of business on the day
your investment is received and accepted at the Minneapolis
headquarters.
Purchase policies:
o Investments must be received and accepted in the Minneapolis
headquarters on a business day before 3 p.m. Central time to
be included in your account that day and to receive that day's
share price. Otherwise your purchase will be processed the
next business day and you will pay the next day's share price.
<PAGE>
PAGE 10
o The minimums allowed for investment may change from time to
time.
o Wire orders can be accepted only on days when your bank, IDS,
the fund and Norwest Bank Minneapolis are open for business.
o Wire purchases are completed when wired payment is received
and the fund accepts the purchase.
o IDS and the fund are not responsible for any delays that occur
in wiring funds, including delays in processing by the bank.
o You must pay any fee the bank charges for wiring.
o The fund reserves the right to reject any application for any
reason.
Three ways to invest
<TABLE>
<CAPTION>
1
<S> <C> <C>
By regular accountSend your check and applicationMinimum amounts
(or your name and account numberInitial investment: $2,000
if you have an established account)Additional
to: investments: $ 100
IDS Financial Services Inc.Account balances: $ 300*
P.O. Box 74 Qualified retirement
Minneapolis, MN 55440-0074accounts: none
Your financial planner will help
you with this process.
2
By scheduledContact your financial plannerMinimum amounts
investment planto set up one of the followingInitial investment: $100
scheduled plans: Additional
investments: $100/mo
o automatic payroll deductionAccount balances: none
(on active plans of
o bank authorization monthly payments)
o direct deposit of
Social Security check
o other plan approved by the fund
3
By wire If you have an established account,If this information is not
you may wire money to: included, the order may be
rejected and all money
Norwest Bank Minneapolis received by the fund, less
Routing No. 091000019 any costs the fund or IDS
Minneapolis, MN incurs, will be returned
Attn:Domestic Wire Dept. promptly.
Give these instructions: Minimum amounts
Credit IDS Account #00-30-015Each wire investment: $1,000
for personal account # (your
account number) for (your name).
*If your account balance falls below $300, IDS will ask you in writing to bring it up to $300 or establish a scheduled
investment plan. If you don't do so within 30 days, your shares can be redeemed and the proceeds mailed to you.
</TABLE>
<PAGE>
PAGE 11
How to exchange shares
You can exchange your shares of the fund at no charge for shares of
any other publicly offered fund in the IDS MUTUAL FUND GROUP
available in your state. For complete information, including fees
and expenses, read the prospectus carefully before exchanging into
a new fund.
If your exchange request arrives at the Minneapolis headquarters
before the close of business, your shares will be redeemed at the
net asset value set for that day. The proceeds will be used to
purchase new fund shares the same day. Otherwise, your exchange
will take place the next business day at that day's net asset
value.
For tax purposes, an exchange represents a sale and purchase and
may result in a gain or loss. However, you cannot create a tax
loss (or reduce a taxable gain) by exchanging from the fund within
91 days of your purchase. For further explanation, see the SAI.
How to sell shares
You can sell (redeem) your shares at any time. IDS Shareholder
Service will mail payment within seven days after receiving your
request.
When you sell shares, the amount you receive may be more or less
than the amount you invested. Your shares will be redeemed at net
asset value at the close of business on the day your request is
accepted at the Minneapolis headquarters. If your request arrives
after the close of business, the price per share will be the net
asset value at the close of business on the next business day.
A redemption is a taxable transaction. If the fund's net asset
value when you sell shares is more or less than the cost of your
shares, you will have a gain or loss, which can affect your tax
liability. Redeeming shares held in an IRA or qualified retirement
account may subject you to certain federal taxes, penalties and
reporting requirements. Consult your tax adviser.
Two ways to request an exchange or sale of shares
<TABLE>
<CAPTION>
1
<S> <C>
By letter Include in your letter:
o the name of the fund(s)
o your account number(s) (for exchanges, both funds must
Regular mail: be registered in the same ownership)
IDS Shareholder Serviceo your Taxpayer Identification Number (TIN)
Attn: Redemptionso the dollar amount or number of shares you want to
P.O. Box 534 exchange or sell
Minneapolis, MN o signature of all registered account owners
55440-0534 o for redemptions, indicate how you want your sales proceeds
delivered to you
o any paper certificates of shares you hold
Express mail:
IDS Shareholder Service
Attn: Redemptions
733 Marquette Ave.
Minneapolis, MN 55402/TABLE
<PAGE>
PAGE 12
<TABLE>
<CAPTION>
2
By phone
<S> <C>
IDS Telephone Transactiono The fund and IDS will honor any telephone exchange or redemption request
Service: believed to be authentic and will use reasonable procedures to confirm
800-437-3133 or that they are. This includes asking identifying questions and tape
612-671-3800 recording calls. So long as reasonable procedures are followed, neither the fund
nor IDS will be liable for any loss resulting from fraudulent requests.
o Phone exchange and redemption privileges automatically apply to all
accounts except custodial, corporate or qualified retirement accounts unless
you request these privileges NOT apply by writing IDS Shareholder Service.
Each registered owner must sign the request.
o IDS answers phone requests promptly, but you may experience delays when call
volume is high. If you are unable to get through, use mail procedure as an
alternative.
o Phone privileges may be modified or discontinued at any time.
Minimum amount
Redemption:$100
Maximum amount
Redemption: $50,000
</TABLE>
Exchange policies:
o You may make up to three exchanges within any 30-day period,
with each limited to $300,000. These limits do not apply to
scheduled exchange programs and certain employee benefit plans
or other arrangements through which one shareholder represents
the interests of several. Exceptions may be allowed with pre-
approval of the fund.
o If your exchange creates a new account, it must satisfy the
minimum investment amount for new purchases.
o Once we receive your exchange request, you cannot cancel it.
o Shares of the new fund may not be used on the same day for
another exchange.
o If your shares are pledged as collateral, the exchange will be
delayed until written approval is obtained from the secured
party.
o IDS and the fund reserve the right to reject any exchange,
limit the amount, or modify or discontinue the exchange
privilege, to prevent abuse or adverse effects on the fund and
its shareholders. For example, if exchanges are too numerous
or too large, they may disrupt the fund's investment
strategies or increase its costs.
Redemption policies:
o A "change of mind" option allows you to change your mind after
requesting a redemption and to use all or part of the proceeds
to buy new shares in the same account at the net asset value,
rather than the offering price on the date of a new purchase.
To do so, send a written request within 30 days of the date
your redemption request was received. Include your account
number and mention this option. This privilege may be limited
or withdrawn at any time, and it may have tax consequences.<PAGE>
PAGE 13
o A telephone redemption request will not be allowed within 30
days of a phoned-in address change.
Important: If you request a redemption of shares you recently
purchased by a check or money order that is not guaranteed, the
fund will wait for your check to clear. Please expect a minimum of
10 days from the date of purchase before IDS mails a check to you.
(A check may be mailed earlier if your bank provides evidence
satisfactory to the fund and IDS that your check has cleared.)
<TABLE>
<CAPTION>
Three ways to receive payment when you sell shares
1
<S> <C>
By regular or express mail o Mailed to the address on record.
o Payable to names listed on the account.
NOTE: The express mail delivery charges
you pay will vary depending on the
courier you select.
2
By wire o Minimum wire redemption: $1,000.
o Request that money be wired to your bank.
o Bank account must be in the same
ownership as the IDS account.
NOTE: Pre-authorization required. For
instructions, contact your financial
planner or IDS Shareholder Service.
3
By scheduled payout plan o Minimum payment: $50.
o Contact your financial planner or IDS
Shareholder Service to set up regular
payments to you on a monthly, bimonthly,
quarterly, semiannual or annual basis.
o Buying new shares while under a payout
plan may be disadvantageous because of
sales charges.
</TABLE>
Reductions of the sales charge
You pay a 5% sales charge on the first $50,000 of your total
investment and less on investments after the first $50,000:
Total investment Sales charge as a
percent of:*
Public Net
offering amount
price invested
Up to $50,000 5.0% 5.26%
Next $50,000 4.5 4.71
Next $150,000 4.0 4.17
Next $250,000 3.0 3.09
Next $500,000 2.0 2.04
Next $2,000,000 1.0 1.01
More than $3,000,000 0.5 0.50
<PAGE>
PAGE 14
* To calculate the actual sales charge on an investment greater
than $50,000, amounts for each applicable increment must be
totaled. See the SAI.
Your sales charge may be reduced, depending on the totals of:
o the amount you are investing in this fund now,
o the amount of your existing investment in this fund, if any,
and
o the amount you and your immediate family (spouse or unmarried
children under 21) are investing or have in other funds in the
IDS MUTUAL FUND GROUP that carry a sales charge.
Other policies that affect your sales charge:
o IDS Cash Management Fund and IDS Tax-Free Money Fund do not
carry sales charges. However, you may count investments in
these funds if you acquired shares in them by exchanging
shares from IDS funds that carry sales charges.
o IRA purchases or other employee benefit plan purchases made
through a payroll deduction plan or through a plan sponsored
by an employer, association of employers, employee
organization or other similar entity, may be added together to
reduce sales charges for all shares purchased through that
plan.
For more details, see the SAI.
Waivers of the sales charge
Sales charges do not apply to:
o Current or retired trustees, directors, officers or employees
of the fund or IDS or its subsidiaries, their spouses and
unmarried children under 21.
o Current or retired IDS planners, their spouses and unmarried
children under 21.
o Qualified employee benefit plans* if the plan:
- has at least $1 million invested in funds of the IDS MUTUAL
FUND GROUP; or
- has 500 or more participants; or
- uses a daily transfer recordkeeping service offering
participants daily access to IDS funds.
(Participants in certain qualified plans for which the initial
sales charge is waived may be subject to a deferred sales charge of
up to 4% on certain redemptions. For more information, see the
SAI.)
<PAGE>
PAGE 15
o Trust companies or similar institutions, and charitable
organizations that meet the definition in Section 501(c)(3) of
the Internal Revenue Code.* These must have at least $1
million invested in funds of the IDS MUTUAL FUND GROUP.
o Purchases made within 30 days after a redemption of shares (1)
of an IDS product in a qualified plan subject to a deferred
sales charge or (2) in IDS Strategy Fund, up to the amount
redeemed. Send the fund a written request along with your
payment, indicating the amount of the redemption and the date
on which it occurred.
o Purchases made with dividend or capital gain distributions
from another fund in the IDS MUTUAL FUND GROUP that has a
sales charge.
*Eligibility must be determined in advance by IDS. To do so,
contact your financial planner.
Special shareholder services
Services
To help you track and evaluate the performance of your investments,
IDS provides these services:
Quarterly statements listing all of your holdings and transactions
during the previous three months.
Yearly tax statements featuring average-cost-basis reporting of
capital gains or losses if you redeem your shares along with
distribution information, which simplifies tax calculations.
A personalized mutual fund progress report detailing returns on
your initial investment and cash-flow activity in your account. It
calculates a total return to reflect your individual history in
owning fund shares. This report is available from your financial
planner.
Quick telephone reference
IDS Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
<PAGE>
PAGE 16
IDS 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
Distributions and taxes
The fund distributes to shareholders investment income and net
capital gains. It does so to qualify as a regulated investment
company and to avoid paying corporate income and excise taxes.
Dividend and capital gains distributions will have tax consequences
you should know about.
Dividend and capital gain distributions
The fund distributes its net investment income (dividends and
interest earned on securities held by the fund, less operating
expenses) to shareholders of record at the end of each calendar
quarter. Short-term capital gains distributed are included in net
investment income. Net realized capital gains, if any, from
selling securities are distributed at the end of the calendar year.
Before they're distributed, both net investment income and net
capital gains are included in the value of each share. After
they're distributed, the value of each share drops by the per-share
amount of the distribution. (If your distributions are reinvested,
the total value of your holdings will not change.)
Reinvestments
Dividends and capital gain distributions are automatically
reinvested in additional shares of the fund, unless:
o you request the fund in writing or by phone to pay
distributions to you in cash, or
o you direct the fund to invest your distributions in any
publicly available IDS fund for which you've previously opened
an account.
You pay no sales charge on shares purchased through reinvestment
from this fund into any IDS fund. The reinvestment price is the
net asset value at close of business on the day the distribution is
paid. (Your quarterly statement from IDS will confirm the amount
invested and the number of shares purchased.)
If you choose cash distributions, you will receive only those
declared after your request has been processed.
If the U.S. Postal Service cannot deliver the checks for the cash
distributions, we will reinvest the checks into your account at the
then-current net asset value and make future distributions in the
form of additional shares.<PAGE>
PAGE 17
Taxes
Distributions are subject to federal income tax and also may be
subject to state and local taxes. Distributions are taxable in the
year the fund pays them regardless of whether you take them in cash
or reinvest them.
Each January, IDS sends you a statement showing the kinds and total
amount of all distributions you received during the previous year.
You must report all distributions on your tax returns, even if they
are reinvested in additional shares.
"Buying a dividend" creates a tax liability. This means buying
shares shortly before a net investment income or a capital gain
distribution. You pay the full pre-distribution price for the
shares, then receive a portion of your investment back as a
distribution, which is taxable.
Redemptions and exchanges subject you to a tax on any capital gain.
If you sell shares for more than their cost, the difference is a
capital gain. Your gain may be either short term (for shares held
for one year or less) or long term (for shares held for more than
one year).
Your Taxpayer Identification Number (TIN) is important. As with
any financial account you open, you must list your current and
correct Taxpayer Identification Number (TIN) -- either your Social
Security or Employer Identification number. The TIN must be
certified under penalties of perjury on your application when you
open an account at IDS.
If you don't provide the TIN to IDS, or the TIN you report is
incorrect, you could be subject to backup withholding of 31% of
taxable distributions and proceeds from certain sales and
exchanges. You also could be subject to further penalties, such
as:
o a $50 penalty for each failure to supply your correct TIN
o a civil penalty of $500 if you make a false statement that
results in no backup withholding
o criminal penalties for falsifying information
You also could be subject to backup withholding because you failed
to report interest or dividends on your tax return as required.
How to determine the correct TIN
Use the Social Security or
For this type of account: Employer Identification number
of:
Individual or joint account The individual or first person
listed on the account
<PAGE>
PAGE 18
Custodian account of a minor The minor
(Uniform Gift/Transfer to Minors
Act)
A living trust The grantor-trustee (the person
who puts the money into the
trust)
An irrevocable trust, pensionThe legal entity (not the
trust or estate personal representative or
trustee, unless no legal entity
is designated in the account
title)
Sole proprietorship or The owner or partnership
partnership
Corporate The corporation
Association, club or The organization
tax-exempt organization
For details on TIN requirements, ask your financial planner or
local IDS office for federal Form W-9, "Request for Taxpayer
Identification Number and Certification."
Important: This information is a brief and selective summary of
certain federal tax rules that apply to this fund. Tax matters are
highly individual and complex, and you should consult a qualified
tax adviser about your personal situation.
Investment policies
The fund invests in common stocks of companies that make up a
market index. That index is currently the S&P 500. The fund will
not own stocks of all of the companies in the market index nor will
the assets be invested in ways to produce the same market results
as the index.
Investment strategy: The investment manager will establish one or
more industry classifications for each company whose common stock
makes up the market index. The classifications may or may not be
the same as the ones given to a company by others. Stocks will be
classified into one of at least 25 industries and some of the
fund's assets will be invested in each classification. Normally
the fund will own stock of 125 or more companies. Cash positions
are invested in money market instruments. To the extent
practicable, the fund's assets are fully invested in stocks with
65% of those being blue chip stocks.
Research analysts employed by the investment manager evaluate
companies and assign ratings to each stock based on their opinion
of the attractiveness of investing. In structuring the portfolio,<PAGE>
PAGE 19
the investment manager selects stocks based on the research analyst
recommendations for a particular stock, the weighting of the stock
and its industry group in the index, dividend yield, historical
volatility and other measures that relate to the stock's historical
and expected performance. The portfolio's structure will resemble
the index while seeking to maximize the fund's expected total
return relative to the index. The composition of the fund's
portfolio is reviewed at least monthly to keep the portfolio's
structure in line with the index and take advantage of the
investment analyst's ratings of the stocks. The dividend yield of
the fund's portfolio, before management fees and expenses are
deducted, is expected to be comparable to that of the market index.
The various types of investments the portfolio manager uses to
achieve investment performance are described in more detail in the
next section and in the SAI.
Facts about investments and their risks
Common stocks: Common stocks are subject to market fluctuations.
Stocks of larger, established companies that pay dividends may be
less volatile than the stock market as a whole.
Blue chip stocks: Blue chip stocks are common stocks included in
the market index used by the fund and issued by companies with a
market capitalization of at least $1 billion, an established
management, a history of consistent earnings and a leading position
within their respective industries.
Foreign investments: The fund may invest only in foreign
securities that are included in the market index, or which will be
included in the index in the near future, or in Canadian money
market instruments. Foreign investments are subject to political
and economic risks of the countries in which the investments are
made including the possibility of seizure or nationalization of
companies, imposition of withholding taxes on income, establishment
of exchange controls or adoption of other restrictions that might
affect an investment adversely. The fund may invest up to 20% of
its total assets in foreign investments included in the market
index.
Derivative instruments: Derivative instruments are used to achieve
total return characteristics of the market index. The derivative
instruments are characterized by requiring little or no initial
payment and a daily change in price based on or derived from an
index. A small change in the value of the underlying index will
cause a sizable gain or loss in the price of the derivative
instrument. Subject to SEC guidelines, the fund will set aside
cash or appropriate liquid assets in a segregated account to cover
its portfolio obligations. No more than 5% of the fund's net
assets can be used at any one time for good faith deposits on
futures and premiums for options on futures that do not offset
existing investment positions. For further information, see the
futures appendix in the SAI.
<PAGE>
PAGE 20
Securities and derivative instruments that are illiquid: Illiquid
means the security or derivative instrument cannot be sold quickly
in the normal course of business. No more than 10% of the fund's
net assets will be held in securities and derivative instruments
that are illiquid.
Money market instruments: Short-term debt securities rated in the
top two grades are used to meet daily cash needs and to hold assets
until the next restructuring of the portfolio.
Exceptions to purchasing stock in an index: First, if an
announcement is made that a stock will be added to the index, the
fund may buy it before it is actually added. Second, if a stock is
removed from the index, the fund may continue to hold it for a
short time. Third, the fund may receive a distribution of a stock
not included in the index from a company whose common stock it
owns, in which case the stock may be held for a short time.
Fourth, the fund cannot buy stock of American Express Company
because it is the parent company of the investment manager.
The investment policies described above may be changed by the board
of directors. The investment manager may change any of the above-
mentioned investment strategies without approval from the
shareholders or the board of directors.
Lending portfolio securities: The fund may lend its securities to
earn income so long as borrowers provide collateral equal to the
market value of the loans. The risks are that borrowers will not
provide collateral when required or return securities when due.
Unless shareholders approve otherwise, loans may not exceed 30% of
the fund's net assets.
Market index: Should the current market index become unavailable
for use by the fund, the board of directors will select a new index
to measure the long-term total returns of the U.S. stock market.
Shareholders will be given as much notice of such a change as is
practicable under the circumstances.
Valuing assets
o Securities (except bonds) and assets with available market
values are valued on that basis.
o Securities maturing in 60 days or less are valued at amortized
cost.
o Bonds and assets without readily available market values are
valued according to methods selected in good faith by the
board of directors.
<PAGE>
PAGE 21
How the fund is organized
IDS Market Advantage Series, Inc., of which IDS Blue Chip Advantage
Fund is a part, is an open-end management investment company, as
defined in the Investment Company Act of 1940. It was incorporated
on Aug. 25, 1989 in Minnesota. The fund headquarters are at 901 S.
Marquette Ave., Suite 2810, Minneapolis, MN 55402-3268.
Shares
The fund is owned by its shareholders. All shares issued by the
fund are of the same class -- capital stock. Par value is 1 cent
per share. Both full and fractional shares can be issued.
Voting rights
As a shareholder, you have voting rights over the fund's management
and fundamental policies. You are entitled to one vote for each
share you own.
Shareholder meetings
The fund does not hold annual shareholder meetings. However, the
directors may call meetings at their discretion, or on demand by
holders of 10% or more of the outstanding shares, to elect or
remove directors.
Directors and officers
Shareholders elect a board of directors who oversee the operations
of the fund and choose its officers. Its officers are responsible
for day-to-day business decisions based on policies set by the
board. The board has named an executive committee that has
authority to act on its behalf between meetings. The directors
also serve on the boards of all of the other funds in the IDS
MUTUAL FUND GROUP, except for Mr. Dudley, who is a director of all
publicly offered funds.
Directors and officers of the fund
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for Public
Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
<PAGE>
PAGE 22
Melvin R. Laird
Senior counsellor for national and international affairs, The
Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer, Minnesota Mining and
Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
Interested directors who are partners in law firms that have
represented IDS subsidiaries
Anne P. Jones
Partner, law firm of Sutherland, Asbill & Brennan.
Interested directors who are officers and/or employees of IDS
William H. Dudley
Executive vice president, IDS.
David R. Hubers
President and chief executive officer, IDS.
John R. Thomas
Senior vice president, IDS.
Other officer
Leslie L. Ogg
Vice president of all funds in the IDS MUTUAL FUND GROUP and
general counsel and treasurer of the publicly offered funds.
Refer to the SAI for the directors' and officers' biographies.
Investment manager and transfer agent
The fund pays IDS for managing its portfolio, providing
administrative services and serving as transfer agent (handling
shareholder accounts).
Under its Investment Management and Services Agreement, IDS
determines which securities will be purchased, held or sold
(subject to the direction and control of the fund's board of
directors). For these services the fund pays IDS a two-part fee.
<PAGE>
PAGE 23
The first part is based on the combined average daily net assets of
all funds in the IDS MUTUAL FUND GROUP, as follows:
Net assets of
IDS MUTUAL Annual
FUND GROUP* fee
First $5 billion 0.46%
Each additional Decreasing
$5 billion percentages
More than $50 billion 0.32%
*Includes all funds, except the money market funds.
The second part is equal to 0.1% of the fund's average daily net
assets during the fiscal year.
For the fiscal year ended Jan. 31, 1994, the fund paid IDS a total
investment management fee of 0.51% of its average daily net assets.
Under the Agreement, the fund also pays taxes, brokerage
commissions and nonadvisory expenses.
In addition, under a separate Transfer Agency Agreement, IDS
maintains shareholder accounts and records. The fund pays IDS an
annual fee of $15 per shareholder account for this service.
Distributor
The fund sells shares through IDS Financial Services Inc., a wholly
owned subsidiary of IDS, under a Distribution Agreement. Financial
planners representing IDS Financial Services Inc. provide
information to investors about individual investment programs, the
fund and its operations, new account applications, exchange and
redemption requests. The cost of these services is paid partially
by the fund's sales charge.
Portions of sales charges may be paid to securities dealers who
have sold the fund's shares, or to banks and other financial
institutions. The proceeds paid to others range from 0.8% to 4% of
the fund's offering price depending on the monthly sales volume.
To help defray costs not covered by sales charges, including costs
for marketing, sales administration, training, overhead, direct
marketing programs, advertising and related functions, the fund
pays IDS a 12b-1 fee. This fee is paid under a Plan and
Supplemental Agreement of Distribution that follows the terms of
Rule 12b-1 of the Investment Company Act of 1940 (and a Securities
and Exchange Commission order). Under this Agreement, the fund
pays IDS $6 per shareholder account per year. The total 12b-1 fee
paid by the fund for the year ended Jan. 31, 1994 was 0.10% of its
average daily net assets. This fee will not cover all of the costs
incurred by IDS.
<PAGE>
PAGE 24
Total management and distribution fees and expenses paid by the
fund in the fiscal year ended Jan. 31, 1994 were 1.03% of its
average daily net assets.
Total fees and expenses (excluding taxes and brokerage commissions)
cannot exceed the most restrictive applicable state expense
limitation.
About IDS
General information
The IDS family of companies offers not only mutual funds but also
insurance, annuities, investment certificates and a broad range of
financial management services.
Besides managing investments for all publicly offered funds in the
IDS MUTUAL FUND GROUP, IDS also manages investments for itself and
its subsidiaries, IDS Certificate Company and IDS Life Insurance
Company. Total assets under management on Jan. 31, 1994 were more
than $100 billion.
IDS Financial Services Inc. serves individuals and businesses
through its nationwide network of more than 175 offices and more
than 7,500 planners.
Other IDS subsidiaries provide investment management and related
services for pension, profit sharing, employee savings and
endowment funds of businesses and institutions.
IDS is located at IDS Tower 10, Minneapolis, MN 55440-0010. It is
a wholly owned subsidiary of American Express Company, a financial
services company with headquarters at American Express Tower, World
Financial Center, New York, NY 10285. The fund may pay brokerage
commissions to broker-dealer affiliates of American Express and
IDS.<PAGE>
PAGE 25
STATEMENT OF ADDITIONAL INFORMATION
FOR
IDS BLUE CHIP ADVANTAGE FUND
April 1, 1994
This Statement of Additional Information (SAI) is not a prospectus.
It should be read together with the fund's prospectus and the
financial statements contained in the fund's Annual Report which
may be obtained from your IDS personal financial planner or by
writing to IDS Shareholder Service, P.O. Box 534, Minneapolis, MN
55440-0534.
This SAI is dated April 1, 1994, and it is to be used with the
fund's prospectus dated April 1, 1994, and the fund's Annual Report
for the fiscal year ended Jan. 31, 1994.
<PAGE>
PAGE 26 TABLE OF CONTENTS
Goal and Investment Policies.........................See Prospectus
Additional Investment Policies................................p. 3
Portfolio Transactions........................................p. 5
Brokerage Commissions Paid to Brokers Affiliated with IDS.....p. 6
Performance Information.......................................p. 7
Valuing Fund Shares...........................................p. 8
Investing in the Fund.........................................p. 10
Redeeming Shares..............................................p. 13
Pay-out Plans.................................................p. 14
Exchanges.....................................................p. 15
Taxes.........................................................p. 15
Agreements....................................................p. 16
Directors and Officers........................................p. 19
Custodian.....................................................p. 21
Independent Auditors..........................................p. 21
Financial Statements..............................See Annual Report
Prospectus....................................................p. 22
Appendix A: Stock Index Futures Contracts
and Related Call Options.........................p. 23
Appendix B: Dollar-Cost Averaging............................p. 27
<PAGE>
PAGE 27
ADDITIONAL INVESTMENT POLICIES
In addition to the investment goal and policies presented in the
prospectus, the fund has investment policies stated below that will
not be changed unless holders of a majority of the outstanding
shares agree to make the change.
These policies state the fund will not:
'Invest more than 5% of its total assets, at market value, in
securities of any one company, government or political subdivision
thereof, except the limitation will not apply to investments in
securities issued by the U.S. government, its agencies or
instrumentalities, and except that up to 25% of the fund's total
assets may be invested without regard to this 5% limitation.
'Purchase more than 10% of the outstanding voting securities of an
issuer.
'Concentrate in any one industry. According to the present
interpretation by the staff of the Securities and Exchange
Commission (SEC), this means no more than 25% of the fund's total
assets, based on current market value at time of purchase, can be
invested in any one industry.
'Invest more than 5% of its total assets, at cost, in securities of
companies, including any predecessors, that have a record of less
than three years continuous operations.
'Buy or sell real estate, commodities or commodity contracts,
except that the fund may enter into stock index futures contracts.
'Buy on margin or sell short, but it may make margin payments in
connection with transactions in stock index futures contracts.
'Invest in a company to control or manage it.
'Pledge or mortgage its assets beyond 15% of the cost of total
assets. If the fund were ever to do so, valuation of the pledged
or mortgaged assets would be based on market value. For purposes
of this policy, collateral arrangements for margin deposits on
stock index futures contracts are not deemed to be a pledge of
assets.
'Borrow money or property, except as a temporary measure for
extraordinary or emergency purposes, in an amount not exceeding
one-third of the market value of its total assets (including
borrowings) less liabilities (other than borrowings) immediately
after the borrowing. The fund has not borrowed in the past and has
no present intention to borrow.
'Make cash loans. The fund, however, does make investments in debt
securities where the seller agrees to repurchase the securities at
cost plus an agreed-upon interest rate within a specified period of
time.
<PAGE>
PAGE 28
'Make a loan of any part of its assets to IDS Financial Corporation
(IDS), to the directors and officers of IDS or to its own directors
and officers.
'Act as an underwriter (sell securities for others). However,
under the securities laws, the fund may be deemed to be an
underwriter when it purchases securities directly from the issuer
and later resells them.
'Lend portfolio securities in excess of 30% of its net assets, at
market value. The current policy of the fund's board of directors
is to make these loans, either long- or short-term, to broker-
dealers. In making such loans the fund gets the market price in
cash, U.S. government securities, letters of credit or such other
collateral as may be permitted by regulatory agencies and approved
by the board of directors. If the market price of the loaned
securities goes up, the fund will get additional collateral on a
daily basis. The risks are that the borrower may not provide
additional collateral when required or return the securities when
due. During the existence of the loan, the fund receives cash
payments equivalent to all interest or other distributions paid on
the loaned securities. A loan will not be made unless the
opportunity for additional income outweighs the risks.
Unless changed by the board of directors, the fund will not:
'Invest in securities of investment companies except by purchase in
the open market where the dealer's or sponsor's profit is the
regular commission. The fund has no present intention of investing
in other investment companies.
'Invest more than 5% of its net assets in warrants. Under one
state's law no more than 2% of the fund's net assets may be
invested in warrants not listed on an exchange.
'Invest in exploration or development programs, such as oil, gas or
mineral programs.
'Purchase securities of an issuer if the directors and officers of
the fund and of IDS hold more than a certain percentage of the
issuer's outstanding securities. The holdings of all directors and
officers of the fund and of IDS who own more than 0.5% of an
issuer's securities are added together, and if in total they own
more than 5%, the fund will not purchase securities of that issuer.
'Invest more than 10% of its net assets in illiquid securities and
derivative instruments. For purposes of this policy illiquid
securities include some privately placed securities, public
securities and Rule 144A securities that for one reason or another
may no longer have a readily available market, repurchase
agreements with maturities greater than seven days, non-negotiable
fixed-time deposits and over-the-counter options.
The fund may invest in Rule 144A securities, which are unregistered
securities offered to qualified institutional buyers. In
determining the liquidity of Rule 144A securities, the investment
manager, under guidelines established by the board of directors,<PAGE>
PAGE 29
will consider any relevant factors including the frequency of
trades, the number of dealers willing to purchase or sell the
security and the nature of marketplace trades.
The fund may invest in commercial paper issued in transactions not
involving a public offering under Section 4(2) of the Securities
Act of 1933 (4(2) paper). In determining the liquidity of 4(2)
paper, the investment manager, under guidelines established by the
board of directors, will evaluate relevant factors such as the
issuer and the size and nature of its commercial paper programs,
the willingness and ability of the issuer or dealer to repurchase
the paper, and the nature of the clearance and settlement
procedures for the paper.
The fund may make contracts to purchase securities for a fixed
price at a future date beyond normal settlement time (when-issued
securities or forward commitments). Under normal market
conditions, the fund does not intend to commit more than 5% of its
total assets to these practices. The fund does not pay for the
securities or receive dividends or interest on them until the
contractual settlement date. The fund will designate cash or
liquid high-grade debt securities at least equal in value to its
commitments to purchase the securities. When-issued securities or
forward commitments are subject to market fluctuations and they may
affect the fund's total assets the same as owned securities.
The fund may maintain a portion of its assets in cash and cash-
equivalent investments. The cash-equivalent investments the fund
may use are short-term U.S. and Canadian government securities and
negotiable certificates of deposit, non-negotiable fixed-time
deposits, bankers' acceptances and letters of credit of banks or
savings and loan associations having capital, surplus and undivided
profits (as of the date of its most recently published annual
financial statements) in excess of $100 million (or the equivalent
in the instance of a foreign branch of a U.S. bank) at the date of
investment. Any cash-equivalent investments in foreign securities
will be subject to the limitations on foreign investments described
above. The fund also may purchase short-term corporate notes and
obligations rated in the top two classifications by Moody's
Investors Service, Inc. or Standard & Poor's Corporation or the
equivalent and may use repurchase agreements with broker-dealers
registered under the Securities Exchange Act of 1934 and with
commercial banks. A risk of a repurchase agreement is that if the
seller seeks the protection of the bankruptcy laws, the fund's
ability to liquidate the security involved could be impaired.
For a discussion on options and stock index futures contracts, see
Appendix A.
PORTFOLIO TRANSACTIONS
Subject to policies set by the board of directors, IDS is
authorized to determine, consistent with the fund's investment goal
and policies, which securities will be purchased, held or sold. In
determining where the buy and sell orders are to be placed, IDS has
been directed to use its best efforts to obtain the best available
price and the most favorable execution except where otherwise<PAGE>
PAGE 30
authorized by the board of directors. In selecting broker-dealers
to execute transactions, IDS has determined that due to the unique
nature of the fund it is in the best interest of this fund to
execute through a single or a limited number of brokers at an
agreed upon favorable commission rate.
The fund paid total brokerage commissions of $307,934 for the
fiscal year ended Jan. 31, 1994, $354,632 for fiscal year 1993, and
$165,014 for fiscal year 1992. Substantially all firms through
whom transactions were executed provide research services.
No transactions were directed to brokers because of research
services they provided to the fund.
The fund's acquisition during the fiscal year ended Jan. 31, 1994,
of securities of its regular brokers or dealers or of the parent of
those brokers or dealers that derived more than 15% of gross
revenue from securities-related activities is presented below:
Value of Securities
Owned at End of
Name of Issuer Fiscal Year
Bank America $ 939,300
Chase Manhattan Bank 484,075
Dean Witter 1,373,825
The portfolio turnover rate was 156% in the fiscal year ended Jan.
31, 1994, and 202% in fiscal year 1993.
BROKERAGE COMMISSIONS PAID TO BROKERS AFFILIATED WITH IDS
Affiliates of American Express Company (American Express) (of which
IDS is a wholly owned subsidiary) may engage in brokerage and other
securities transactions on behalf of the fund according to
procedures adopted by the fund's board of directors and to the
extent consistent with applicable provisions of the federal
securities laws. IDS will use an American Express affiliate only
if (i) IDS determines that the fund will receive prices and
executions at least as favorable as those offered by qualified
independent brokers performing similar brokerage and other services
for the fund and (ii) the affiliate charges the fund commission
rates consistent with those the affiliate charges comparable
unaffiliated customers in similar transactions and if such use is
consistent with terms of the Investment Management and Services
Agreement.
<PAGE>
PAGE 31
Information about brokerage commissions paid by the fund for the
last three fiscal years (periods) to brokers affiliated with IDS is
contained in the following table:
<TABLE>
<CAPTION>
For the Fiscal Year Ended Jan. 31,
1994 1993 1992
Aggregate Percent of Aggregate Aggregate
Dollar Aggregate Dollar Dollar Dollar
Amount of Percent of Amount of Amount of Amount of
Nature Commissions Aggregate Transactions Commissions Commissions
of Paid to Brokerage Involving Payment Paid to Paid to
Broker Affiliation Broker Commissions of Commissions Broker Broker
<S> <C> <C> <C> <C>
American (3) -0- -0- -0- $6,836 None
Enterprise
Investment
Services
Inc.
</TABLE>
(1) Under common control with IDS as a subsidiary of American
Express. [As of July 30, 1993 Shearson Lehman Brothers Inc. became
Lehman Brothers, Inc.]
(2) Under common control with IDS as an indirect subsidiary of
American Express.
(3) Wholly owned subsidiary of IDS.
(4) Under common control with IDS as an indirect subsidiary of
American Express until July 30, 1993.
(5) Under common control with IDS as a subsidiary of American
Express until July 30, 1993.
PERFORMANCE INFORMATION
The fund may quote various performance figures to illustrate past
performance for the fund. An explanation of the methods used by
the fund to compute performance follows below.
Average annual total return
The fund may calculate average annual total return for certain
periods by finding the average annual compounded rates of return
over the period that would equate the initial amount invested to
the ending redeemable value, according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1,000
payment, made at the beginning of a period, at the
end of the period (or fractional portion thereof)
The total return of the S&P 500 is calculated by several sources.
The fund will use the total return as calculated by Standard &
Poor's Corporation (S&P) to measure the U.S. stock market. The
total return is calculated by adding dividend income to price
appreciation. For periods after 1987, total return on the S&P 500
is determined by reinvesting cash dividends paid on stocks on the<PAGE>
PAGE 32
ex-dividend date - that is, the date on or after which a sales of
stock does not carry with it the right to a dividend already
declared. For periods before 1988, S&P calculated total return by
compiling actual dividends on a quarterly basis and assumed they
were reinvested as of the end of a particular quarter. S&P also
makes adjustments for special dividends, such as stock dividends.
The percentage changes for the indexes other than the S&P 500
reflect reinvestment of all distributions on a quarterly basis and
changes in market prices. The percentage changes for all the
indexes exclude brokerage commissions or other fees. By
comparison, the fund will incur such fees and other expenses.
Aggregate total return
The fund may calculate aggregate total return for certain periods
representing the cumulative change in the value of an investment in
the fund over a specified period of time according to the following
formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000
ERV = ending redeemable value of a hypothetical $1,000
payment, made at the beginning of a period, at the
end of the period (or fractional portion thereof)
In its sales material and other communications, the fund may quote,
compare or refer to rankings, yields or returns as published by
independent statistical services or publishers and publications
such as The Bank Rate Monitor National Index, Barron's, Business
Week, Donoghue's Money Market Fund Report, Financial Services Week,
Financial Times, Financial World, Forbes, Fortune, Global Investor,
Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Lipper Analytical Services, Money, Mutual Fund Forecaster,
Newsweek, The New York Times, Personal Investor, Stanger Report,
Sylvia Porter's Personal Finance, USA Today, U.S. News and World
Report, The Wall Street Journal and Wiesenberger Investment
Companies Service.
VALUING FUND SHARES
The value of an individual share is determined by using the net
asset value before shareholder transactions for the day. On
Feb. 1, 1994, the first business day following the end of the
fiscal year, the computation looked like this:
<TABLE>
<CAPTION>
Net assets before Shares outstanding Net asset value
shareholder transactions at end of previous day of one share
<S> <C> <C>
$147,326,551 divided by 22,451,674 equals $6.56
</TABLE>
In determining net assets before shareholder transactions, the
fund's portfolio securities are valued as follows as of the close
of business of the New York Stock Exchange:
<PAGE>
PAGE 33
'Securities, except bonds other than convertibles, traded on a
securities exchange for which a last-quoted sales price is readily
available are valued at the last-quoted sales price on the exchange
where such security is primarily traded.
'Securities traded on a securities exchange for which a last-quoted
sales price is not readily available are valued at the mean of the
closing bid and asked prices, looking first to the bid and asked
prices on the exchange where the security is primarily traded and,
if none exist, to the over-the-counter market.
'Securities included in the NASDAQ National Market System are
valued at the last-quoted sales price in this market.
'Securities included in the NASDAQ National Market System for which
a last-quoted sales price is not readily available, and other
securities traded over-the-counter but not included in the NASDAQ
National Market System are valued at the mean of the closing bid
and asked prices.
'Futures and options traded on major exchanges are valued at the
last-quoted sales price on their primary exchange.
'Foreign securities traded outside the United States are generally
valued as of the time their trading is complete, which is usually
different from the close of the New York Stock Exchange. Foreign
securities quoted in foreign currencies are translated into U.S.
dollars at the current rate of exchange. Occasionally, events
affecting the value of such securities may occur between such times
and the close of the New York Stock Exchange that will not be
reflected in the computation of the fund's net asset value. If
events materially affecting the value of such securities occur
during such period, these securities will be valued at their fair
value according to procedures decided upon in good faith by the
fund's board of directors.
'Short-term securities maturing more than 60 days from the
valuation date are valued at the readily available market price or
approximate market value based on current interest rates. Short-
term securities maturing in 60 days or less that originally had
maturities of more than 60 days at acquisition date are valued at
amortized cost using the market value on the 61st day before
maturity. Short-term securities maturing in 60 days or less at
acquisition date are valued at amortized cost. Amortized cost is
an approximation of market value determined by systematically
increasing the carrying value of a security if acquired at a
discount, or reducing the carrying value if acquired at a premium,
so that the carrying value is equal to maturity value on the
maturity date.
'Securities without a readily available market price, bonds other
than convertibles and other assets are valued at fair value as
determined in good faith by the board of directors. The board of
directors is responsible for selecting methods it believes provide
fair value. When possible, bonds are valued by a pricing service
independent from the fund. If a valuation of a bond is not<PAGE>
PAGE 34
available from a pricing service, the bond will be valued by a
dealer knowledgeable about the bond if such a dealer is available.
The New York Stock Exchange, IDS and the fund will be closed on the
following holidays: New Year's Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day.
INVESTING IN THE FUND
Sales Charge
Shares of the fund are sold at the public offering price determined
at the close of business on the day an application is accepted.
The public offering price is the net asset value of one share plus
a sales charge. The public offering price for an investment of
less than $50,000, made Feb. 1, 1994, was determined by dividing
the net asset value of one share, $6.56, by 0.95 (1.00-0.05 for a
maximum 5% sales charge) for a public offering price of $6.91. The
sales charge is paid to IDS Financial Services Inc. by the person
buying the shares.
Calculation of the Sales Charge
Sales charges are determined as follows:
<TABLE>
<CAPTION>
Within each increment,
sales charge as a
percentage of:
Public Net
Amount of Investment Offering Price Amount Invested
<S> <C> <C>
First $ 50,000 5.0% 5.26%
Next 50,000 4.5 4.71
Next 150,000 4.0 4.17
Next 250,000 3.0 3.09
Next 500,000 2.0 2.04
Next 2,000,000 1.0 1.01
More than 3,000,000 0.5 0.50
</TABLE>
Sales charges on an investment greater than $50,000 are calculated
for each increment separately and then totaled. The resulting
total sales charge, expressed as a percentage of the public
offering price and of the net amount invested, will vary depending
on the proportion of the investment at different sales charge
levels.
For example, compare an investment of $60,000 with an investment of
$85,000. The $60,000 investment is composed of $50,000 that incurs
a sales charge of $2,500 (5.0% x $50,000) and $10,000 that incurs a
sales charge of $450 (4.5% x $10,000). The total sales charge of
$2,950 is 4.92% of the public offering price and 5.17% of the net
amount invested.
<PAGE>
PAGE 35
In the case of the $85,000 investment, the first $50,000 also
incurs a sales charge of $2,500 (5.0% x $50,000) and $35,000 incurs
a sales charge of $1,575 (4.5% x $35,000). The total sales charge
of $4,075 is 4.79% of the public offering price and 5.04% of the
net amount invested.
The following table shows the range of sales charges as a
percentage of the public offering price and of the net amount
invested on total investments at each applicable level.
<TABLE>
<CAPTION>
On total investment, sales
charge as a percentage of
Public Net
Offering Price Amount Invested
Amount of Investment ranges from:
<S> <C> <C>
First $ 50,000 5.00% 5.26%
More than 50,000 to 100,000 5.00-4.75 5.26-4.99
More than 100,000 to 250,000 4.75-4.30 4.99-4.49
More than 250,000 to 500,000 4.30-3.65 4.49-3.79
More than 500,000 to 1,000,000 3.65-2.83 3.79-2.91
More than 1,000,000 to 3,000,000 2.83-1.61 2.91-1.63
More than 3,000,000 1.61-0.50 1.63-0.50
</TABLE>
The initial sales charge is waived for certain qualified plans that
meet the requirements set forth in the prospectus. Participants in
those qualified plans who redeem shares in circumstances unrelated
to death, disability, retirement, attaining age 59 1/2, loans or
hardship withdrawals may be subject to a deferred sales charge.
The deferred sales charge varies depending on the number of
participants in the qualified plan and total plan assets as
follows:
Deferred Sales Charge
Number of Participants
Total Plan Assets 1-199 200-499 500 or more
Less than $1 million 4% 2% 0%
$1 million but less
than $3 million 2 2 0
$3 million or more 0 0 0
___________________________________________________________________
Reducing the Sales Charge
Sales charges are based on the total amount of your investments in
the fund. The amount of all prior investments plus any new
purchase is referred to as your "total amount invested." For
example, suppose you have made an investment of $20,000 and later
decide to invest $40,000 more. Your total amount invested would be<PAGE>
PAGE 36
$60,000. As a result, $10,000 of your $40,000 investment qualifies
for the lower 4.5% sales charge that applies to investments of more
than $50,000 to $100,000.
The total amount invested includes any shares held in the fund in
the name of a member of your immediate family (spouse and unmarried
children under 21). For instance, if your spouse already has
invested $20,000 and you want to invest $40,000, your total amount
invested will be $60,000 and therefore you will pay the lower
charge of 4.5% on $10,000 of the $40,000.
Until a spouse remarries, the sales charge is waived for spouses
and unmarried children under 21 of deceased trustees, directors,
officers or employees of the fund or IDS or its subsidiaries and
deceased planners.
The total amount invested also includes any investment you or your
immediate family already have in the other publicly offered funds
in the IDS MUTUAL FUND GROUP where the investment is subject to a
sales charge. For example, suppose you already have an investment
of $25,000 in IDS Growth Fund and $5,000 in this fund. If you
invest $40,000 more in this fund, your total amount invested in the
funds will be $70,000 and therefore $20,000 of your $40,000
investment will incur a 4.5% sales charge.
Finally, Individual Retirement Account (IRA) purchases, or other
employee benefit plan purchases made through a payroll deduction
plan or through a plan sponsored by an employer, association of
employers, employee organization or other similar entity, may be
added together to reduce sales charges for shares purchased through
that plan.
Systematic Investment Programs
After you make your initial investment of $2,000 or more, you can
arrange to make additional payments of $100 or more on a regular
basis. These minimums do not apply to all systematic investment
programs. You decide how often to make payments - monthly,
quarterly or semiannually. You are not obligated to make any
payments. You can omit payments or discontinue the investment
program altogether. The fund also can change the program or end it
at any time. If there is no obligation, why do it? Putting money
aside is an important part of financial planning. With a
systematic investment program, you have a goal to work for.
How does this work? When you send in your payment, your money is
invested at the public offering price. Your regular investment
amount will purchase more shares when the net asset value per share
decreases, and fewer shares when the net asset value per share
increases. Each purchase is a separate transaction. After each
purchase your new shares will be added to your account. Shares
bought through these programs are exactly the same as any other
fund shares. They can be bought and sold at any time. A
systematic investment program is not an option or an absolute right
to buy shares.
<PAGE>
PAGE 37
The systematic investment program itself cannot ensure a profit,
nor can it protect against a loss in a declining market. If you
decide to discontinue the program and redeem your shares when their
net asset value is less than what you paid for them, you will incur
a loss.
For a discussion on dollar-cost averaging, see Appendix B.
Automatic Directed Dividends
Dividends, including capital gain distributions, paid by another
fund in the IDS MUTUAL FUND GROUP subject to a sales charge, may be
used to automatically purchase shares of this fund without paying a
sales charge. Dividends may be directed to existing accounts only.
Dividends declared by a fund are exchanged to this fund the
following day. Dividends can be exchanged into one fund but cannot
be split to make purchases in two or more funds. Automatic
directed dividends are available between accounts of any ownership
except:
'Between a non-custodial account and an IRA, or 401(k) plan account
or other qualified retirement account of which IDS Bank & Trust
acts as custodian;
'Between two IDS Bank & Trust custodial accounts with different
owners (for example, you may not exchange dividends from your IRA
to the IRA of your spouse);
'Between different kinds of custodial accounts with the same
ownership (for example, you may not exchange dividends from your
IRA to your 401(k) plan account, although you may exchange
dividends from one IRA to another IRA).
Moreover, dividends may be directed from accounts established under
the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to
Minors Act (UTMA) only into other UGMA or UTMA accounts with
identical ownership.
Each fund has a different investment goal described in its
prospectus along with other information, including fees and expense
ratios. Before exchanging dividends into another fund, you should
read its prospectus. You will receive a confirmation that the
automatic directed dividend service has been set up for your
account.
REDEEMING SHARES
You have a right to redeem your shares at any time. For an
explanation of redemption procedures, please see the prospectus.
During an emergency, the board of directors can suspend the
computation of net asset value, stop accepting payments for
purchase of shares or suspend the duty of the fund to redeem shares
for more than seven days. Such emergency situations would occur
if:
<PAGE>
PAGE 38
'The New York Stock Exchange closes for reasons other than the
usual weekend and holiday closings or trading on the Exchange is
restricted, or
'Disposal of the fund's securities is not reasonably practicable or
it is not reasonably practicable for the fund to determine the fair
value of its net assets, or
'The SEC, under the provisions of the Investment Company Act of
1940, as amended, declares a period of emergency to exist.
Should the fund stop selling shares, the directors may make a
deduction from the value of the assets held by the fund to cover
the cost of future liquidations of the assets so as to distribute
fairly these costs among all shareholders.
PAY-OUT PLANS
You can use any of several pay-out plans to redeem your investment
in regular installments at no extra cost. While the plans differ
on how the pay-out is figured, they all are based on the redemption
of your investment. Net investment income dividends and any
capital gain distributions will automatically be reinvested, unless
you elect to receive them in cash. If you are redeeming a tax-
qualified plan account for which IDS Bank & Trust acts as
custodian, you can elect to receive your dividends and other
distributions in cash when permitted by law. If you redeem an IRA
or a qualified retirement account, certain restrictions, federal
tax penalties and special federal income tax reporting requirements
may apply. You should consult your tax adviser about this complex
area of the tax law.
IDS normally will not accept applications for a systematic
investment in any fund in the IDS MUTUAL FUND GROUP subject to a
sales charge while a pay-out plan for any of those funds is in
effect. Occasional investments, however, may be accepted.
To start any of these plans, please submit an authorization form
supplied by IDS Shareholder Service. For a copy, write or call IDS
Shareholder Service, P.O. Box 534, Minneapolis, MN 55440-0534, 612-
671-3733. Your authorization must be received in the Minneapolis
headquarters at least five days before the date you want your
payments to begin. The initial payment must be at least $50.
Payments will be made on a monthly, bimonthly, quarterly,
semiannual or annual basis. Your choice is effective until you
change or cancel it.
The following pay-out plans are designed to take care of the needs
of most shareholders in a way IDS can handle efficiently and at a
reasonable cost. If you need a more irregular schedule of
payments, it may be necessary for you to make a series of
individual redemptions, in which case you will have to send in a
separate redemption request for each pay-out. The fund reserves
the right to change or stop any pay-out plan and to stop making
such plans available.
<PAGE>
PAGE 39
Plan #1: Pay-out for a fixed period of time
If you choose this plan, a varying number of shares will be
redeemed at net asset value at regular intervals during the time
period you choose. This plan is designed to end in complete re-
demption of all shares in your account by the end of the fixed
period.
Plan #2: Redemption of a fixed number of shares
If you choose this plan, a fixed number of shares will be redeemed
at net asset value for each payment and that amount will be sent to
you. The length of time these payments continue is based on the
number of shares in your account.
Plan #3: Redemption of a fixed dollar amount
If you decide on a fixed dollar amount, whatever number of shares
is necessary to make the payment will be redeemed in regular
installments until your account is closed.
Plan #4: Redemption of a percentage of net asset value
Payments are made based on a fixed percentage of the net asset
value of the shares in the account computed on the day of each
payment. Percentages range from 0.25% to 0.75%. For example, if
you are on this plan and arrange to take 0.5% each month, you will
get $50 if the value of your account is $10,000 on the payment
date.
EXCHANGES
If you buy shares in the fund and then exchange into another fund,
it is considered a sale and subsequent purchase of shares. Under
the tax laws, if this exchange is done within 91 days, any sales
charge waived on a subsequent purchase of shares applies to the new
shares acquired in the exchange. Therefore, you cannot create a
tax loss or reduce a tax gain attributable to the sales charge when
exchanging shares within 91 days.
Retirement Accounts
If you have a nonqualified investment in the fund and you wish to
move part or all of those shares to an IRA or qualified retirement
account in this fund, you can do so without paying a sales charge.
However, this type of exchange is considered a sale of shares and
may result in a gain or loss for tax purposes. In addition, this
type of exchange may result in an excess contribution under IRA or
qualified plan regulations if the amount exchanged plus the amount
of the initial sales charge applied to the amount exchanged exceeds
annual contribution limitations. For example: If you were to
exchange $2,000 in shares from a nonqualified account to an IRA
without considering the 5% ($100) initial sales charge applicable
to that $2,000, you may be deemed to have exceeded current IRA
annual contribution limitations. You should consult your tax
adviser for further details about this complex subject.
<PAGE>
PAGE 40
TAXES
Net investment income dividends received should be treated as
dividend income for federal income tax purposes. Corporate
shareholders are generally entitled to a deduction equal to 70% of
that portion of the fund's dividend that is attributable to
dividends the fund received from domestic (U.S.) securities. For
the fiscal year ended Jan. 31, 1994, 37.92% of the fund's net
investment income dividends qualified for the corporate deduction.
Capital gain distributions received by individual and corporate
shareholders, if any, should be treated as long-term capital gains
regardless of how long they owned their shares. Short-term capital
gains earned by the fund are paid to shareholders as part of their
ordinary income dividend and are taxable.
You may be able to defer taxes on current income from a fund by
investing through an IRA, 401(k) plan account or other qualified
retirement account. If you move all or part of a non-qualified
investment in the fund to a qualified account, this type of
exchange is considered a sale of shares. You pay no sales charge,
but the exchange may result in a gain or loss for tax purposes, or
excess contributions under IRA or qualified plan regulations.
Under federal tax law, by the end of a calendar year the fund must
declare and pay dividends representing 98% of ordinary income for
that calendar year and 98% of net capital gains (both long-term and
short-term) for the 12-month period ending Oct. 31 of that calendar
year. The fund is subject to an excise tax equal to 4% of the
excess, if any, of the amount required to be distributed over the
amount actually distributed. The fund intends to comply with
federal tax law and avoid any excise tax.
The fund may be subject to U.S. taxes resulting from holdings in a
passive foreign investment company (PFIC). A foreign corporation
is a PFIC when 75% or more of its gross income for the taxable year
is passive income or if 50% or more of the average value of its
assets consists of assets that produce or could produce passive
income. The fund has no current intention to invest in PFICs.
This is a brief summary that relates to federal income taxation
only. Shareholders should consult their tax adviser as to the
application of federal, state and local income tax laws to fund
distributions.
AGREEMENTS
Investment Management and Services Agreement
The fund has an Investment Management and Services Agreement with
IDS. For its services, IDS is paid a fee composed of an asset
charge in two parts. The first part, the group asset charge, is
based on the combined daily net assets of all funds in the IDS
MUTUAL FUND GROUP, except the money market funds, including any new
fund that may be organized in the future. The daily rate of the
group asset charge is based upon the following schedule:<PAGE>
PAGE 41
Group Asset Charge
Group assets Annual rate at Effective
(billions) each asset level annual rate
First $5 0.460% 0.460%
Next $5 0.440 0.450
Next $5 0.420 0.440
Next $5 0.400 0.430
Next $5 0.390 0.422
Next $5 0.380 0.415
Next $5 0.360 0.407
Next $5 0.350 0.400
Next $5 0.340 0.393
Next $5 0.330 0.387
Over $50 0.320
The aggregate net assets of all non-money market funds in the IDS
MUTUAL FUND GROUP were $43,923,236,435 on Jan. 31, 1994, and the
daily rate applied to the fund's assets was equal to approximately
0.39% on an annual basis.
The second part of the asset charge is calculated at an annual rate
of 0.10 percent and is based on the unique characteristics of the
fund, including the fund's use of services provided by IDS in the
areas of investment research, portfolio management, investment
services and fund accounting. The total fee is calculated for each
calendar day on the basis of net assets as of the close of business
two business days prior to the day for which the calculation is
made.
The management fee is paid monthly. The total amount paid was
$678,653 for the fiscal year ended Jan. 31, 1994, $528,798 for
fiscal year 1993, and $361,893 for fiscal year 1992.
Under the current Agreement, the fund also pays taxes, brokerage
commissions and nonadvisory expenses, that include custodian fees;
audit and certain legal fees; fidelity bond premiums; registration
fees for shares; fund office expenses; consultants' fees;
compensation of directors, officers and employees; corporate filing
fees; Investment Company Institute dues; organizational expenses;
expenses incurred in connection with lending portfolio securities
of the fund; and expenses properly payable by the fund, approved by
the board of directors. The fund paid nonadvisory expenses of
$254,146 for the fiscal year ended Jan. 31, 1994, $194,681 for
fiscal year 1993, and $136,399 for fiscal year 1992.
Transfer Agency Agreement
The fund has a Transfer Agency Agreement with IDS. This agreement
governs IDS' responsibility for administering and/or performing
transfer agent functions, for acting as service agent in connection
with dividend and distribution functions and for performing
shareholder account administration agent functions in connection
with the issuance, exchange and redemption or repurchase of the
fund's shares. Under the agreement, IDS will earn a fee from the<PAGE>
PAGE 42
fund determined by multiplying the number of shareholder accounts
at the end of the day by a rate of $15 per year and dividing by the
number of days in the year. The fees paid to IDS may be changed
from time to time upon agreement of the parties without shareholder
approval. The fund paid fees of $320,969 for the fiscal year ended
Jan. 31, 1994.
Distribution Agreement
Under a Distribution Agreement, sales charges deducted for
distributing fund shares are paid to IDS Financial Services Inc.
daily. These charges amounted to $556,866 for the fiscal year
ended Jan. 31, 1994. After paying commissions to personal
financial planners, and other expenses, the amount retained was
$216,463. The amounts were $1,038,796 and $500,300 for fiscal year
1993, and $1,560,281 and $534,472 for fiscal year 1992.
Additional information about commissions and compensation for the
fiscal year ended Jan. 31, 1994, is contained in the following
table:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
<C> <C> <C> <C> <C>
Net Compensation
Name of Underwriting on Redemption
Principal Discounts and and Brokerage Other
Underwriter Commissions Repurchases Commissions Compensation
IDS None None None* $128,942**
IDS Financial
Services Inc. $556,866 None None None
</TABLE>
*For further information see "Brokerage Commissions Paid to Brokers
Affiliated with IDS."
**Distribution fees paid pursuant to the Plan and Supplemental
Agreement of Distribution.
Plan and Supplemental Agreement of Distribution
To help IDS defray the cost of distribution and servicing, not
covered by the sales charges received under the Distribution
Agreement, the fund and IDS entered into a Plan and Supplemental
Agreement of Distribution (Plan). These costs cover almost all
aspects of distributing the fund shares except compensation to the
sales force. A substantial portion of the costs are not
specifically identified to any one fund in the IDS MUTUAL FUND
GROUP. Under the Plan, IDS is paid a fee determined by multiplying
the number of shareholder accounts at the end of each day by a rate
of $6 per year and dividing by the number of days in the year.
The Plan must be approved annually by the directors, including a
majority of the disinterested directors, if it is to continue for<PAGE>
PAGE 43
more than a year. At least quarterly, the directors must review
written reports concerning the amounts expended under the Plan and
the purposes for which such expenditures were made. The Plan and
any agreement related to it may be terminated at any time by vote
of a majority of directors who are not interested persons of the
fund and have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan, or
by vote of a majority of the outstanding voting securities of the
fund or by IDS. The Plan (or any agreement related to it) shall
terminate in the event of its assignment, as that term is defined
in the Investment Company Act of 1940, as amended. The Plan may
not be amended to increase the amount to be spent for distribution
without shareholder approval, and all material amendments to the
Plan must be approved by a majority of the directors, including a
majority of the directors who are not interested persons of the
fund and who do not have a financial interest in the operation of
the Plan or any agreement related to it. The selection and
nomination of such disinterested directors is the responsibility of
such disinterested directors. No interested person of the fund,
and no director who is not an interested person, has any direct or
indirect financial interest in the operation of the Plan or any
related agreement.
Total fees and nonadvisory expenses cannot exceed the most
restrictive applicable state limitation. Currently, the most
restrictive applicable state expense limitation, subject to
exclusion of certain expenses, is 2.5% of the first $30 million of
the fund's average daily net assets, 2% of the next $70 million and
1.5% of average daily net assets over $100 million, on an annual
basis. At the end of each month, if the fees and expenses of the
fund exceed this limitation for the fund's fiscal year in progress,
IDS will assume all expenses in excess of the limitation. IDS then
may bill the fund for such expenses in subsequent months up to the
end of that fiscal year, but not after that date. No interest
charges are assessed by IDS for expenses it assumes.
DIRECTORS AND OFFICERS
The following is a list of the fund's directors who, except for Mr.
Dudley, also are directors of all other funds in the IDS MUTUAL
FUND GROUP. Mr. Dudley is a director of all publicly offered
funds. All shares have cumulative voting rights when voting on the
election of directors.
Lynne V. Cheney
American Enterprise Institute for Public Policy Research (AEI)
1150 17th Street N.W.
Washington, DC
Distinguished fellow, AEI. Former Chair of National Endowment of
the Humanities (federal agency). Director, The Reader's Digest
Association, Inc. and Lockheed Corporation, and The Interpublic
Group of Companies, Inc.
<PAGE>
PAGE 44
William H. Dudley+**
2900 IDS Tower
Minneapolis, MN
Executive vice president and director of IDS.
Robert F. Froehlke+
901 S. Marquette Ave.
Minneapolis, MN
Former president of all funds in the IDS MUTUAL FUND GROUP.
Director, the ICI Mutual Insurance Co., Institute for Defense
Analyses, Marshall Erdman and Associates, Inc. (architectual
engineering) and Public Oversight Board of the American Institute
of Certified Public Accountants.
David R. Hubers**
2900 IDS Tower
Minneapolis, MN
President, chief executive officer and director of IDS.
Previously, senior vice president, finance and chief financial
officer of IDS.
Anne P. Jones***
Sutherland, Asbill & Brennan
1275 Pennsylvania Ave., N.W.
Washington, D.C.
Partner, law firm of Sutherland, Asbill & Brennan. Director,
Motorola, Inc. and C-Cor Electronics, Inc.
Donald M. Kendall
PepsiCo, Inc.
Purchase, NY
Former chairman and chief executive officer, PepsiCo, Inc.
Director, Atlantic Richfield Company.
Melvin R. Laird
Reader's Digest Association, Inc.
1730 Rhode Island Ave., N.W.
Washington, D.C.
Senior counsellor for national and international affairs, The
Reader's Digest Association, Inc. Chairman of the board, COMSAT
Corporation, former nine-term congressman, secretary of defense and
presidential counsellor. Director, Martin Marietta Corp.,
Metropolitan Life Insurance Co., The Reader's Digest Association,
Inc., Science Applications International Corp., Wallace Reader's
Digest funds and Public Oversight Board (SEC Practice Section,
American Institute of Certified Public Accountants).
<PAGE>
PAGE 45
Lewis W. Lehr'
3050 Minnesota World Trade Center
30 E. Seventh St.
St. Paul, MN
Former chairman of the board and chief executive officer, Minnesota
Mining and Manufacturing Company (3M). Director, Jack Eckerd
Corporation (drugstores). Advisory Director, Peregrine Inc.
(microelectronics).
William R. Pearce+*
901 S. Marquette Ave.
Minneapolis, MN
President of all funds in the IDS MUTUAL FUND GROUP since June
1993. Former vice chairman of the board, Cargill, Incorporated
(commodity merchants and processors).
Edson W. Spencer+'
840 TCF Tower
Minneapolis, MN
President, Spencer Associates Inc. (consulting). Chairman of the
board, Mayo Foundation (healthcare). Former chairman of the board
and chief executive officer, Honeywell, Inc. Director, Boise
Cascade Corporation (forest products) and CBS Inc. Member of
International Advisory Councils, Robert Bosch (Germany) and NEC
(Japan).
John R. Thomas+**
2900 IDS Tower
Minneapolis, MN
Senior vice president and director of IDS.
Wheelock Whitney+
1900 Foshay Tower
821 Marquette Ave.
Minneapolis, MN
Chairman, Whitney Management Company (manages family assets).
+ Member of executive committee.
' Member of joint audit committee.
* Interested person by reason of being an officer and employee of
the fund.
**Interested person by reason of being an officer, director,
employee and/or shareholder of IDS or American Express.
***Interested person by reason of being a partner in a law firm
that has represented IDS or its subsidiaries.
The board also has appointed officers who are responsible for day-
to-day business decisions based on policies it has established.
<PAGE>
PAGE 46
Besides Mr. Pearce, who is president, the fund's other officer is:
Leslie L. Ogg
901 S. Marquette Ave.
Minneapolis, MN
Vice president of all funds in the IDS MUTUAL FUND GROUP and
general counsel and treasurer of the publicly offered funds.
On Jan. 31, 1994, the fund's directors and officers as a group
owned less than 1% of the outstanding shares. During the fiscal
year ended Jan. 31, 1994, no director or officer earned more than
$60,000 from this fund. All directors and officers as a group
earned $14,047, including $2,104 of retirement plan expense, from
this fund.
CUSTODIAN
The fund's securities and cash are held by IDS Bank & Trust, 1200
Northstar Center West, 625 Marquette Ave., Minneapolis, MN 55402-
2307, through a custodian agreement. The custodian is permitted to
deposit some or all of its securities in central depository systems
as allowed by federal law.
INDEPENDENT AUDITORS
The fund's financial statements contained in its Annual Report to
shareholders, for the fiscal year ended Jan. 31, 1994, were audited
by independent auditors, KPMG Peat Marwick, 4200 Norwest Center, 90
S. Seventh St., Minneapolis, MN 55402-3900. The independent
auditors also provide other accounting and tax-related services as
requested by the fund.
FINANCIAL STATEMENTS
The Independent Auditors' Report and the Financial Statements,
including Notes to the Financial Statements and the Schedule of
Investments in Securities, contained in the 1994 Annual Report to
IDS Blue Chip Advantage Fund shareholders, pursuant to Section
30(d) of the Investment Company Act of 1940, as amended, are hereby
incorporated in this SAI by reference. No other portion of the
Annual Report, however, is incorporated by reference.
PROSPECTUS
The prospectus dated April 1, 1994, is hereby incorporated in this
Statement of Additional Information by reference.
<PAGE>
PAGE 47
APPENDIX A
STOCK INDEX FUTURES CONTRACTS AND RELATED CALL OPTIONS
The fund may buy stock index futures contracts (futures contracts),
buy call options on futures contracts and buy call options on stock
indexes.
STOCK INDEX FUTURES CONTRACTS. Stock index futures contracts are
commodity contracts listed on commodity exchanges. They include
contracts on the Standard & Poor's 500 Stock Index (S&P 500 Index)
and other broad stock market indexes such as the New York Stock
Exchange Composite Stock Index and the Value Line Composite Stock
Index, as well as narrower sub-indexes such as the S&P 100 Energy
Stock Index and the New York Stock Exchange Utilities Stock Index.
A stock index assigns relative values to common stocks included in
the index and the index fluctuates with the value of the common
stocks so included.
A futures contract is a legal agreement between a buyer or seller
and the clearinghouse of a futures exchange in which the parties
agree to make a cash settlement on a specified future date in an
amount determined by the stock index on the last trading day of the
contract. The amount is a specified dollar amount (usually $100 or
$500) multiplied by the difference between the index value on the
last trading day and the value on the day the contract was struck.
For example, the S&P 500 Index consists of 500 selected common
stocks, most of which are listed on the New York Stock Exchange.
The S&P 500 Index assigns relative weightings to the common stocks
included in the Index, and the Index fluctuates with changes in the
market values of those stocks. In the case of S&P 500 Index
futures contracts, the specified multiple is $500. Thus, if the
value of the S&P 500 Index were 150, the value of one contract
would be $75,000 (150 x $500). Unlike other futures contracts, a
stock index futures contract specifies that no delivery of the
actual stocks making up the index will take place. Instead,
settlement in cash must occur upon the termination of the contract.
For example, excluding any transaction costs, if the fund enters
into one futures contract to buy the S&P 500 Index at a specified
future date at a contract value of 150 and the S&P 500 Index is at
154 on that future date, the fund will gain $500 x (154-150) or
$2,000. If the fund enters into one futures contract to buy the
S&P 500 Index at a specified future date at a contract value of 150
and the S&P 500 Index is at 148 on that future date, the fund will
lose $500 x (150-148) or $1000.
Unlike the purchase or sale of an equity security, no price would
be paid or received by the fund upon entering into stock index
futures contracts. However, the fund would be required to deposit
with its custodian, in a segregated account in the name of the
futures broker, an amount of cash or U.S. Treasury bills equal to
approximately 5% of the contract value. This amount is known as
initial margin. The nature of initial margin in futures
transactions is different from that of margin in security
transactions in that futures contract margin does not involve<PAGE>
PAGE 48
borrowing funds by the fund to finance the transactions. Rather,
the initial margin is in the nature of a performance bond or good-
faith deposit on the contract that is returned to the fund upon
termination of the contract, assuming all contractual obligations
have been satisfied.
Subsequent payments, called variation margin, to and from the
broker would be made on a daily basis as the price of the
underlying stock index fluctuates, making the long and short
positions in the contract more or less valuable, a process known as
marking to the market. For example, when the fund enters into a
contract in which it benefits from a rise in the value of an index
and the price of the underlying stock index has risen, the fund
will receive from the broker a variation margin payment equal to
that increase in value. Conversely, if the price of the underlying
stock index declines, the fund would be required to make a
variation margin payment to the broker equal to the decline in
value.
How the Fund Would Use Stock Index Futures Contracts. The fund
intends to use stock index futures contracts and related options
for hedging and not for speculation. Hedging permits the fund to
gain rapid exposure to changes in the market. For example, the
fund may find itself with a high cash position because of new
purchases of fund shares. Conventional procedures of purchasing a
number of individual issues entail the lapse of time and the
possibility of missing a significant market movement. By using
futures contracts, the fund can obtain immediate exposure to the
market. The buying program can then proceed and once it is
completed (or as it proceeds), the contracts can be closed.
Special Risks of Transactions in Stock Index Futures Contracts.
1. Liquidity. The fund may elect to close some or all of its
contracts prior to expiration. The purpose of making such a move
would be to reduce or eliminate the hedge position held by the
fund. The fund may close its positions by taking opposite
positions. Final determinations of variation margin are then made,
additional cash as required is paid by or to the fund, and the fund
realizes a gain or a loss.
Positions in stock index futures contracts may be closed only on an
exchange or board of trade providing a secondary market for such
futures contracts. For example, futures contracts transactions can
currently be entered into with respect to the S&P 500 Stock Index
on the Chicago Mercantile Exchange. Although the fund intends to
enter into futures contracts only on exchanges or boards of trade
where there appears to be an active secondary market, there is no
assurance that a liquid secondary market will exist for any
particular contract at any particular time. In such event, it may
not be possible to close a futures contract position, and in the
event of adverse price movements, the fund would have to make daily
cash payments of variation margin. Further, there is no guarantee
the price of the securities will correlate with the price movements
in the futures contract.
<PAGE>
PAGE 49
2. Hedging Risks. There are several risks in using stock index
futures contracts as a hedging device. One risk arises because the
prices of futures contracts may not correlate perfectly with
movements in the underlying stock index due to certain market
distortions. First, all participants in the futures market are
subject to initial margin and variation margin requirements.
Rather than making additional variation margin payments, investors
may close the contracts through offsetting transactions which could
distort the normal relationship between the index and futures
markets. Second, the margin requirements in the futures market are
lower than margin requirements in the securities market, and as a
result the futures market may attract more speculators than does
the securities market. Increased participation by speculators in
the futures market may also cause temporary price distortions.
Because of price distortion in the futures market and because of
imperfect correlation between movements in stock indexes and
movements in prices of futures contracts, even a correct forecast
of general market trends may not result in a successful hedging
transaction over a short period. In addition, if the fund has
insufficient cash, it may have to sell securities to meet daily
variation margin requirements.
OPTIONS ON STOCK INDEX FUTURES CONTRACTS. Options on stock index
futures contracts are similar to options on stock except that
options on futures contracts give the purchaser the right, in
return for the premium paid, to assume a position in a stock index
futures contract (a long position if the option is a call) at a
specified exercise price at any time during the period of the
option. If the option is closed instead of exercised, the holder
of the option receives an amount that represents the amount by
which the market price of the contract exceeds (in the case of a
call) the exercise price of the option on the futures contract. If
the option does not appreciate in value prior to the exercise date,
the fund will suffer a loss of the premium paid.
OPTIONS ON STOCK INDEXES. Stock indexes are securities traded on
national securities exchanges. An option on a stock index is
similar to an option on a futures contract except all settlements
are in cash. A fund exercising an option, for example, would
receive the difference between the exercise price and the current
index level. Such options would be used in the same manner as
options on futures contracts.
SPECIAL RISKS OF TRANSACTIONS IN OPTIONS ON STOCK INDEX FUTURES
CONTRACTS AND OPTIONS ON STOCK INDEXES. As with options on stocks,
the holder of an option on a stock index futures contract or on a
stock index may terminate a position by selling an option covering
the same contract or index and having the same exercise price and
expiration date. Trading in options on stock index futures
contracts and stock indexes began only recently. The ability to
establish and close out positions on such options will be subject
to the development and maintenance of a liquid secondary market.
The fund will not purchase options unless the market for such
options has developed sufficiently, so that the risks in connection
with options are not greater than the risks in connection with
stock index futures contracts transactions themselves. Compared to<PAGE>
PAGE 50
using futures contracts, purchasing options involves less risk to
the fund because the maximum amount at risk is the premium paid for
the options (plus transaction costs). There may be circumstances,
however, when using an option would result in a greater loss to the
fund than using a futures contract, such as when there is no
movement in the level of the stock index.
TAX TREATMENT. As permitted under federal income tax laws, the
fund intends to identify futures contracts as mixed straddles and
not mark them to market, that is, not treat them as having been
sold at the end of the year at market value. Such an election may
result in the fund being required to defer recognizing losses
incurred by entering into futures contracts and losses on
underlying securities identified as being hedged against.
Federal income tax treatment of gains or losses from transactions
in options on futures contracts and stock indexes is currently
unclear, although the fund's tax advisers currently believe marking
to market is not required. Depending on developments, and although
no assurance is given, the fund may seek Internal Revenue Service
(IRS) rulings clarifying questions concerning such treatment.
Certain provisions of the Internal Revenue Code may also limit the
fund's ability to engage in futures contracts and related options
transactions. For example, at the close of each quarter of the
fund's taxable year, at least 50% of the value of its assets must
consist of cash, government securities and other securities,
subject to certain diversification requirements. Less than 30% of
its gross income must be derived from sales of securities held less
than three months.
The IRS has ruled publicly that an exchange-traded call option is a
security for purposes of the 50-%-of-assets test and that its
issuer is the issuer of the underlying security, not the writer of
the option, for purposes of the diversification requirements. In
order to avoid realizing a gain within the three-month period, the
fund may be required to defer closing out a contract beyond the
time when it might otherwise be advantageous to do so.
Accounting for futures contracts will be according to generally
accepted accounting principles. Initial margin deposits will be
recognized as assets due from a broker (the fund's agent in
acquiring the futures position). During the period the futures
contract is open, changes in value of the contract will be
recognized as unrealized gains or losses by marking to market on a
daily basis to reflect the market value of the contract at the end
of each day's trading. Variation margin payments will be made or
received depending upon whether gains or losses are incurred. All
contracts and options will be valued at the last-quoted sales price
on their primary exchange.
<PAGE>
PAGE 51
APPENDIX B
DOLLAR-COST AVERAGING
A technique that works well for many investors is one that
eliminates random buy and sell decisions. One such system is
dollar-cost averaging. Dollar-cost averaging involves building a
portfolio through the investment of fixed amounts of money on a
regular basis regardless of the price or market condition. This
may enable an investor to smooth out the effects of the volatility
of the financial markets. By using this strategy, more shares will
be purchased when the price is low and less when the price is high.
As the accompanying chart illustrates, dollar-cost averaging tends
to keep the average price paid for the shares lower than the
average market price of shares purchased, although there is no
guarantee.
While this does not ensure a profit and does not protect against a
loss if the market declines, it is an effective way for many
shareholders who can continue investing through changing market
conditions to accumulate shares in a fund to meet long term goals.
Dollar-cost averaging
Regular Market Price Shares
Investment of a Share Acquired
$100 $ 6.00 16.7
100 4.00 25.0
100 4.00 25.0
100 6.00 16.7
100 5.00 20.0
$500 $25.00 103.4
Average market price of a share over 5 periods:
$5.00 ($25.00 divided by 5).
The average price you paid for each share:
$4.84 ($500 divided by 103.4).<PAGE>
PAGE 52
Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS Market Advantage Series, Inc.:
We have audited the accompanying statement
of assets and liabilities, including the
schedule of investments in securities, of
IDS Blue Chip Advantage Fund (a series of
IDS Market Advantage Series, Inc.) as of
January 31, 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 January 31, 1994, and the financial
highlights for each of the years in the
three-year period ended January 31, 1994,
and for the period from March 5, 1990
(commencement of operations) to January 31,
1991. 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. 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.<PAGE>
PAGE 53
Independent auditors' report
___________________________________________________________________
In our opinion, the financial statements
referred to above present fairly, in all
material respects, the financial position
of IDS Blue Chip Advantage Fund at January
31, 1994, 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 January 31, 1994, and
the financial highlights for the periods
stated in the first paragraph above, in
conformity with generally accepted
accounting principles.
KPMG Peat Marwick
Minneapolis, Minnesota
March 4, 1994
<PAGE>
PAGE 54
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Blue Chip Advantage Fund
Jan. 31, 1994
Assets
__________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $133,897,354) $147,036,773
Cash in bank on demand deposit 620,371
Dividends receivable 324,501
Organizational costs (Note 4) 9,517
__________________________________________________________________________________________________________
Total assets 147,991,162
__________________________________________________________________________________________________________
Liabilities
__________________________________________________________________________________________________________
Payable to investment manager for organizational costs (Note 4) 10,283
Accrued investment management and services fee 60,450
Accrued distribution fee 10,918
Accrued transfer agency fee 27,296
Other accrued expenses 109,805
__________________________________________________________________________________________________________
Total liabilities 218,752
__________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $147,772,410
__________________________________________________________________________________________________________
Represented by
__________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 22,451,674 shares $ 224,517
Additional paid-in capital 128,180,444
Undistributed net investment income (Note 1) 205,735
Accumulated net realized gain on investments 5,999,745
Unrealized appreciation of investments (Note 5) 13,161,969
__________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $147,772,410
__________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 6.58
__________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 55
<TABLE>
<CAPTION>
Statement of operations
IDS Blue Chip Advantage Fund
Jan. 31, 1994
Investment income
__________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $37,364) $3,487,708
Interest 29,145
__________________________________________________________________________________________________________
Total income 3,516,853
__________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 678,653
Distribution fee 128,942
Transfer agency fee 320,969
Compensation of directors 12,435
Compensation of officers 1,612
Custodian fees 81,431
Postage 47,931
Registration fees 52,160
Reports to shareholders 20,536
Audit fees 16,000
Administrative 4,855
Other 17,186
__________________________________________________________________________________________________________
Total expenses 1,382,710
__________________________________________________________________________________________________________
Investment income -- net 2,134,143
__________________________________________________________________________________________________________
Realized and unrealized gain on investments -- net
__________________________________________________________________________________________________________
Net realized gain on security transactions (Note 3) 12,661,941
Net realized gain on closed stock index futures contracts 113,500
__________________________________________________________________________________________________________
Net realized gain on investments 12,775,441
Net change in unrealized appreciation or depreciation of investments 3,908,042
__________________________________________________________________________________________________________
Net gain on investments 16,683,483
__________________________________________________________________________________________________________
Net increase in net assets resulting from operations $18,817,626
__________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 56
Financial statements
<TABLE>
<CAPTION>
Statement of changes in net assets
IDS Blue Chip Advantage Fund
Year ended Jan. 31,
Operations and distributions 1994
1993
__________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 2,134,143 $ 1,682,214
Net realized gain on investments 12,775,441 6,540,033
Net change in unrealized appreciation or
depreciation of investments 3,908,042 2,474,997
__________________________________________________________________________________________________________
Net increase in net assets resulting from operations 18,817,626 10,697,244
__________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (2,043,210) (1,627,836)
Net realized gain on investments (8,629,922) (5,046,667)
__________________________________________________________________________________________________________
Total distributions (10,673,132) (6,674,503)
__________________________________________________________________________________________________________
Capital share transactions
__________________________________________________________________________________________________________
Proceeds from sales of
6,335,699 and 7,921,182 shares (Note 2) 40,812,605 48,126,719
Net asset value of 1,637,538 and 1,074,056 shares
issued in reinvestment of distributions 10,543,443 6,588,179
Payments for redemptions of
5,507,338 and 3,222,531 shares (35,563,796) (19,593,636)
__________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
2,465,899 and 5,772,707 shares 15,792,252 35,121,262
__________________________________________________________________________________________________________
Total increase in net assets 23,936,746 39,144,003
__________________________________________________________________________________________________________
Net assets at beginning of year 123,835,664 84,691,661
__________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$205,735 and $106,367) $147,772,410 $123,835,664
__________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 57
Notes to financial statements
IDS Blue Chip Advantage Fund
___________________________________________________________________
1. Summary of significant accounting policies
The fund is a series of IDS Market Advantage
Series, Inc. and registered under the Investment
Company Act of 1940 (as amended) as a
diversified, open-end management investment
company. Significant accounting policies
followed by the fund are summarized below:
Valuation of securities
All securities are valued at the close of each
business day. Securities traded on national
securities exchanges or included in national
market systems are valued at the last quoted
sales price; securities for which market
quotations are not readily available are valued
at fair value according to methods selected in
good faith by the board of directors.
Determination of fair value involves, among other
things, reference to market indexes, matrixes and
data from independent brokers. Short-term
securities maturing in more than 60 days from the
valuation date are valued at the market price or
approximate market value based on current
interest rates; those maturing in 60 days or less
are valued at amortized cost.
Futures transactions
In order to gain exposure to or protect itself
from changes in the market, the fund may buy
stock index futures contracts. Risks of entering
into futures contracts include the possibility
that there may be an illiquid market and that a
change in the value of the contract 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.
<PAGE>
PAGE 58
Notes to financial statements
IDS Blue Chip Advantage Fund
___________________________________________________________________
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. 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
increased by $8,435, resulting in a
reclassification adjustment to decrease paid-in-
capital by $8,435.
Dividends to shareholders
Dividends from net investment income, declared
and paid each calendar quarter, are reinvested in
additional shares of the fund at net asset value
or payable in cash. Capital gains, when
available, are distributed along with the last
income dividend of the calendar year.
Other
Security transactions are accounted for on the
date securities are purchased or sold. Dividend
income is recognized on the ex-dividend date and
interest income, including level-yield
amortization of premium and discount is accrued
daily.
<PAGE>
PAGE 59
Notes to financial statements
IDS Blue Chip Advantage Fund
___________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991,
the fund pays IDS Financial Corporation (IDS) a
fee for managing its investments, recordkeeping
and other specified services. The fee is a
percentage of the fund's average daily net assets
consisting of a group asset charge in reducing
percentages from 0.46% to 0.32% annually on the
combined net assets of all non-money market funds
in the IDS MUTUAL FUND GROUP and an individual
annual asset charge of 0.1% of average daily net
assets.
The fund also pays IDS a distribution fee at an
annual rate of $6 per shareholder account and a
transfer agency fee at an annual rate of $15 per
shareholder account. The transfer agency fee is
reduced by earnings on monies pending shareholder
redemptions.
IDS will assume and pay any expenses (except
taxes and brokerage commissions) that exceed the
most restrictive applicable state expense
limitation.
Sales charges by IDS Financial Services Inc. for
distributing fund shares were $556,866 for the
year ended Jan. 31, 1994. The Fund also pays
custodian fees to IDS Bank & Trust, an affiliate
of IDS.
The fund has a retirement plan for its
independent directors. Upon retirement,
directors receive monthly payments equal to
one-half of the retainer fee for as many months
as they served as directors up to 120 months.
There are no death benefits. The plan is not
funded but the fund recognizes the cost of
payments during the time the directors serve on
the board. The retirement plan expense amounted
to $2,104 for the year ended Jan. 31, 1994.<PAGE>
PAGE 60
Notes to financial statements
IDS Blue Chip Advantage Fund
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of
securities (other than short-term obligations)
aggregated $214,759,109 and $208,564,811,
respectively, for the year ended Jan. 31, 1994.
Realized gains and losses are determined on an
identified cost basis.
___________________________________________________________________
4. Organization costs
Organization costs are being amortized over 60
months on a straight-line basis. If any of the
initial shares held by IDS are redeemed during
the amortization period, the redemption proceeds
will be reduced by a pro-rata portion of the
unamortized balance.
___________________________________________________________________
5. Stock index futures contracts
Investments in securities at Jan. 31, 1994,
included securities valued at $323,250 that were
pledged as collateral to cover initial margin
deposits on four purchase contracts. The market
value of the open contracts at Jan. 31, 1994, is
$963,400 with $22,550 unrealized gain.
___________________________________________________________________
6. Financial highlights
"Financial highlights" showing per share data and
selected information is presented on page 5 of
the prospectus.<PAGE>
PAGE 61
Investments in securities
<TABLE><CAPTION>
IDS Blue Chip Advantage Fund (Percentages represent value of
Jan. 31, 1994 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (98.8%)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (7.9%)
General Dynamics 13,100 $ 1,206,838
Grumman 19,300 788,887
Loral 32,000 1,276,000
Martin Marietta 44,300 1,987,963
McDonnell Douglas 5,300 605,525
Raytheon 41,500 2,811,625
Rockwell Intl 72,900 2,916,000
___________
11,592,838
__________________________________________________________________________________________________________
Airlines (0.1%)
AMR 2,300(b) 165,313
__________________________________________________________________________________________________________
Automotive & related (1.7%)
Chrysler 7,900 485,850
Ford Motor 6,700 448,900
General Motors 25,000 1,534,375
Navistar 500 13,000
____________
2,482,125
__________________________________________________________________________________________________________
Banks and savings & loans (6.3%)
Ahmanson (HF) 51,300 961,875
Bank of Boston 13,600 348,500
BankAmerica 20,200 939,300
Barnett Banks 5,300 223,925
Chase Manhattan 13,400 484,075
Chemical Banking 14,000 553,000
First Chicago 68,700 3,228,900
First Union 8,700 378,450
Fleet Financial Group 12,600 442,575
Great Western Financial 21,400 414,625
Nations Bank 17,000 862,750
PNC Bank 14,200 420,675
____________
9,258,650
__________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 62
Investments in securities
<TABLE><CAPTION>
IDS Blue Chip Advantage Fund (Percentages represent value of
Jan. 31, 1994 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (cont'd)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Beverages & tobacco (9.7%)
Coca-Cola 138,700 $ 5,669,362
PepsiCo 127,200 5,135,700
UST 125,500 3,576,750
____________
14,381,812
__________________________________________________________________________________________________________
Building materials (0.5%)
Boise Cascade 9,900 266,062
Tyco Laboratories 100 5,400
Weyerhaeuser 8,000 391,000
____________
662,462
__________________________________________________________________________________________________________
Chemicals (2.7%)
Dow Chemical 13,300 844,550
Great Lakes Chemical 39,500 3,115,562
____________
3,960,112
__________________________________________________________________________________________________________
Communications equipment (2.7%)
Andrew 13,300 588,525
Motorola 26,600 2,620,100
Scientific-Atlanta 25,700 729,238
___________
3,937,863
__________________________________________________________________________________________________________
Computers & office equipment (6.4%)
Pitney Bowes 80,500 3,612,438
Sun Microsystems 36,000 (b) 954,000
Xerox 49,500 4,857,187
____________
9,423,625
__________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 63
Investments in securities
<TABLE><CAPTION>
IDS Blue Chip Advantage Fund (Percentages represent value of
Jan. 31, 1994 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (cont'd)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Energy (8.6%)
Atlantic Richfield 3,000 $ 331,500
Chevron 11,000 1,027,125
Louisiana Land/Exp 7,200 299,700
Mobil 7,500 607,500
Occidental Petroleum 63,200 1,137,600
Phillips Petroleum 25,300 746,350
Royal Dutch Petroleum ADR 78,400 (c) 8,624,000
____________
12,773,775
__________________________________________________________________________________________________________
Energy equipment & services (0.2%)
Rowan 31,400 (b) 247,275
__________________________________________________________________________________________________________
Financial services (5.0%)
Dean Witter 35,800 1,373,825
Federal Natl Mtge 50,900 4,447,388
Household Intl 49,100 1,626,438
____________
7,447,651
__________________________________________________________________________________________________________
Furniture & appliances (--%)
Black & Decker 800 16,900
__________________________________________________________________________________________________________
Health care (5.7%)
Abbott Labs 24,400 719,800
Amgen 5,100 (b) 248,625
Johnson & Johnson 2,000 84,750
Medtronic 26,100 2,192,400
Pfizer 81,100 5,241,088
____________
8,486,663
__________________________________________________________________________________________________________
Health care services (1.6%)
Service Intl 90,500 2,386,938
__________________________________________________________________________________________________________
Household products (4.7%)
Procter & Gamble 106,200 6,318,900
Unilever NV ADR 4,900 (c) 582,487
____________
6,901,387
__________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 64
Investments in securities
<TABLE><CAPTION>
IDS Blue Chip Advantage Fund (Percentages represent value of
Jan. 31, 1994 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (cont'd)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Industrial equipment & services (1.9%)
Caterpillar 27,300 $ 2,842,612
__________________________________________________________________________________________________________
Industrial transportation (1.0%)
CSX 1,400 128,450
Norfolk Southern 4,900 360,762
Union Pacific 15,600 1,019,850
____________
1,509,062
__________________________________________________________________________________________________________
Insurance (0.7%)
Chubb 3,900 324,187
CNA Financial 7,900 (b) 642,862
Torchmark 1,900 90,488
____________
1,057,537
__________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 65
Investments in securities
<TABLE><CAPTION>
IDS Blue Chip Advantage Fund (Percentages represent value of
Jan. 31, 1994 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (cont'd)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Leisure time & entertainment (1.8%)
Mattel 84,000 $ 1,911,000
Paramount Communications 6,400 509,600
Promus 4,400 222,750
____________
2,643,350
__________________________________________________________________________________________________________
Media (1.2%)
Comcast Cl A 42,800 1,342,850
Deluxe 7,100 247,612
Donnelly (RR) & Sons 1,300 40,300
Tele-Communications Cl A 1,400 (b) 38,150
Time Warner 3,100 124,000
____________
1,792,912
__________________________________________________________________________________________________________
Metals (2.8%)
Bethlehem Steel 7,400 (b) 174,825
Cyprus Minerals 16,100 483,000
Nucor 24,600 1,451,400
Placer Dome 69,500 (c) 1,763,563
USX-U.S. Steel Group 4,500 198,000
____________
4,070,788
__________________________________________________________________________________________________________
Multi-industry conglomerates (2.3%)
General Electric 28,700 (d) 3,092,425
ITT 3,600 354,150
____________
3,446,575
__________________________________________________________________________________________________________
Paper & packaging (0.6%)
Intl Paper 9,300 698,662
Union Camp 2,500 122,813
____________
821,475
__________________________________________________________________________________________________________
Restaurants & lodging (4.6%)
McDonalds 71,200 4,325,400
Shoneys 57,100 (b) 1,313,300
Wendy's Intl 67,400 1,154,225
____________
6,792,925
__________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 66
Investments in securities
<TABLE><CAPTION>
IDS Blue Chip Advantage Fund (Percentages represent value of
Jan. 31, 1994 investments compared to net assets)
__________________________________________________________________________________________________________
Common stocks (cont'd)
__________________________________________________________________________________________________________
Issuer Shares Value(a)
__________________________________________________________________________________________________________
<S> <C> <C>
Retail (3.2%)
Amer Stores 1,300 $ 55,088
Gap 1,300 54,925
Limited 17,900 317,725
Melville 19,500 775,125
Penney (JC) 3,200 167,600
Rite Aid 23,600 439,550
Super Valu Stores 200 7,800
Toys R Us 9,300 (b) 339,450
Walgreen 800 31,200
Wal-Mart Stores 96,900 2,567,850
____________
4,756,313
__________________________________________________________________________________________________________
Textiles & apparel (0.4%)
NIKE Cl B 8,100 405,000
Reebok Intl 5,300 170,263
____________
575,263
__________________________________________________________________________________________________________
Utilities-electric (0.8%)
Amer Electric Power 10,700 386,538
Entergy 6,100 227,225
Public Service Enterprises 17,300 547,112
____________
1,160,875
__________________________________________________________________________________________________________
Utilities-gas (0.4%)
Enron 3,500 115,062
Tenneco 9,400 540,500
____________
655,562
__________________________________________________________________________________________________________
Utilities-telephone (13.3%)
AT&T 13,100 743,425
BellSouth 113,200 6,961,800
MCI Communications 72,800 2,011,100
Pacific Telesis 75,000 4,321,875
U S West 129,100 5,648,125
____________
19,686,325
__________________________________________________________________________________________________________
Total common stocks
(Cost: $132,797,544)] $145,936,963
__________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 67
Investments in securities
<TABLE><CAPTION>
IDS Blue Chip Advantage Fund (Percentages represent value of
Jan. 31, 1994 investments compared to net assets)
__________________________________________________________________________________________________________
Short-term security (0.7%)
__________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
__________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency
Federal Home Loan Mtge
Disc Nt
02-03-94 3.12% $1,100,000 $ 1,099,810
__________________________________________________________________________________________________________
Total short-term security
(Cost: $1,099,810) $ 1,099,810
__________________________________________________________________________________________________________
Total investments in securities
(Cost: $133,897,354)(e) $147,036,773
__________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 68
Investments in securities
<TABLE>
IDS Blue Chip Advantage Fund
Jan. 31, 1994
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) Foreign security values are stated in U.S. dollars.
(d) Partially pledged as initial deposit on the following open stock index futures purchase
contracts (see Note 5 to the financial statements):
<CAPTION>
Type of security Contracts
___________________________________________________________________________________________
<S> <C>
Standard & Poor's 500 Stock Index, March 1994 4
___________________________________________________________________________________________
(e) At Jan. 31, 1994, the cost of securities for federal income tax purposes was
$134,044,623 and the aggregate gross unrealized appreciation and depreciation
based on that cost was:
<S> <C>
Unrealized appreciation] $14,684,098
Unrealized depreciation] (1,691,948)
___________________________________________________________________________________________
Net unrealized appreciation] $12,992,150
___________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 69
Part C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) List of financial statements filed as part of this Post-
Effective Amendment to the Registration Statement.
Independent Auditors' Report dated March 4, 1994
Statement of Assets and Liabilities, Jan. 31, 1994
Statement of Operations, Year Ended Jan. 31, 1994
Statement of Changes in Net Assets, Two Years Ended
Jan. 31, 1993 and 1994
Notes to Financial Statements
Investment in Securities, Jan. 31, 1994
Notes to Investments in Securities
(b) Exhibits:
1. Articles of Incorporation as amended on Jan. 16, 1990,
filed as exhibit 1 to Registration Statement No. 33-30770
are incorporated herein by reference.
2. By-laws, filed as Exhibit 2 to Pre-Effective Amendment No. 3
to Registration Statement No. 33-30770 are incorporated
herein by reference.
3. Not Applicable.
4. Not Applicable.
5. Investment Management and Services Agreement between
Registrant and IDS Financial Corporation, dated Nov. 14,
1991, filed as Exhibit 5 to Post-Effective Amendment No. 3 to
Registration Statement No. 33-30770, is incorporated herein
by reference.
6. Distribution Agreement between Registrant and IDS Financial
Services Inc., dated Jan. 30, 1990, filed as Exhibit 6 to
Pre-Effective Amendment No. 3 to Registration Statement No.
33-30770 is incorporated herein by reference.
7. All employees who have attained age 21 and completed one year
of service are eligible to participate in a Profit Sharing
Plan. Entry into the plan is Jan. 1 or July 1 following
completion of the age and service requirements. The
Registrant contributes each year an amount up to 15 percent
of their annual salaries, the maximum amount permitted under
Section 404(a) of the Internal Revenue Code or up to a
maximum of 0.08 of 1 percent of the Fund's net income before
income taxes and other adjustments.
<PAGE>
PAGE 70
8.(a)
Custodian Agreement between Registrant and IDS Bank and
Trust, dated Jan. 30, 1990, filed as Exhibit 8(a) to Pre-
Effective Amendment No. 3 to Registration Statement No. 33-
30770 is incorporated herein by reference.
9. Transfer Agency Agreement between Registrant and IDS
Financial Corporation, dated Nov. 14, 1991, filed as Exhibit
9 to Post-Effective Amendment No. 3 to Registration Statement
No. 33-30770, is incorporated herein by reference.
10. Copy of Opinion and Consent of Counsel as to the legality of
the securities registered filed as Exhibit 10 on February 1,
1990 to Pre-Effective Amendment No. 3 to Registration
Statement No. 33-30770 is incorporated herein by reference.
11. Copy of Independent Auditors' Consent is filed
electronically.
12. None.
13. Agreement made in consideration for providing initial capital
between Registrant and IDS Financial Corporation filed as
Exhibit No. 13 on March 1, 1990 to Pre-Effective Amendment
No. 4 to Registration Statement No. 33-30770 is incorporated
herein by reference.
14. Forms of Keogh, IRA and other retirement plans, filed as
Exhibits 14(a) through 14(n) to IDS Growth Fund, Inc., Post-
Effective Amendment No. 34 to Registration Statement No. 2-
383 on Sept. 8, 1986, are incorporated herein by reference.
15. Plan and Supplemental Agreement of Distribution between
Registrant and IDS Financial Corporation, dated Jan. 30,
1990, filed as Exhibit 15 to Pre-Effective Amendment No. 3 to
Registration Statement No. 33-30770 is incorporated herein by
reference.
16. Copy of Schedule for computation of each performance
quotation provided in the Registration Statement in response
to Item 22, filed as Exhibit 16 on August 29, 1990 to Post-
Effective Amendment No. 1 to Registration Statement No. 33-
30770 is incorporated herein by reference.
17.(a)
Directors' Power of Attorney to sign amendments to this
Registration Statement dated Oct. 14, 1993, filed as Exhibit
17(a) with Registrant's Post-Effective Amendment No. 8 to
Registration Statement No. 33-30770, is incorporated herein
by reference.
17.(b)
Officers' Power of Attorney to sign amendments to this
Registration Statement, dated June 1, 1993, filed as Exhibit
17(b) with Registrant's Post-Effective Amendment No. 8 to<PAGE>
PAGE 71
Registration Statement No. 33-30770, is incorporated herein
by reference.
Item 25. Persons Controlled by or Under Common Control with
Registrant
None.
Item 26. Number of Holders of Securities
(1) (2)
Number of Record
Holders as of
Title of Class March 21, 1994
Common Stock 15,566
<PAGE>
PAGE 72
<PAGE>
PAGE 1
Item 27. Indemnification
The Articles of Incorporation of the registrant provide that the
Fund shall indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that she or he
is or was a director, officer, employee or agent of the Fund, or is
or was serving at the request of the Fund as a director, officer,
employee or agent of another company, partnership, joint venture,
trust or other enterprise, to any threatened, pending or completed
action, suit or proceeding, wherever brought, and the Fund may
purchase liability insurance and advance legal expenses, all to the
fullest extent permitted by the laws of the State of Minnesota, as
now existing or hereafter amended. The By-laws of the registrant
provide that present or former directors or officers of the Fund
made or threatened to be made a party to or involved (including as
a witness) in an actual or threatened action, suit or proceeding
shall be indemnified by the Fund to the full extent authorized by
the Minnesota Business Corporation Act, all as more fully set forth
in the By-laws filed as an exhibit to this registration statement.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Any indemnification hereunder shall not be exclusive of any other
rights of indemnification to which the directors, officers,
employees or agents might otherwise be entitled. No
indemnification shall be made in violation of the Investment
Company Act of 1940.
<PAGE>
PAGE 2
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)
Directors and officers of IDS Financial Corporation who are
directors and/or officers of one or more other companies:
Ronald G. Abrahamson, Vice President--Field Administration
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Administration
Minneapolis, MN 55440
Douglas A. Alger, Vice President--Total Compensation
IDS Financial Services Inc. Vice President-
IDS Tower 10 Total Compensation
Minneapolis, MN 55440
Jerome R. Amundson, Vice President and Controller--Mutual Funds
Operations
IDS Financial Services Inc. Vice President and
IDS Tower 10 Controller-Mutual Funds
Minneapolis, MN 55440 Operations
Peter J. Anderson, Director and Senior Vice President--Investments
IDS Securities Corporation Executive Vice President-
Investments
IDS Advisory Group Inc. Director and Chairman
IDS Tower 10 of the Board
Minneapolis, MN 55440
IDS Capital Holdings Inc. Director and President
IDS International, Inc. Director, Chairman of the
Board and Executive Vice
President
IDS Financial Services Inc. Senior Vice President-
Advisory Group and Equity
Management
IDS Fund Management Limited Director
NCM Capital Management Group, Inc. Director
2 Mutual Plaza
501 Willard Street
Durham, NC 27701
Ward D. Armstrong, Vice President--Sales and Marketing, IDS
Institutional Retirement Services
IDS Financial Services Inc. Vice President-Sales and
IDS Tower 10 Marketing, IDS
Minneapolis, MN 55440 Institutional Retirement
Services
Alvan D. Arthur, Region Vice President--Pacific Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 Pacific Region
Minneapolis, MN 55440
<PAGE>
PAGE 3
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Kent L. Ashton, Vice President--Group Management Office, Banking
and Certificates Group
IDS Financial Services Inc. President-Group Management
IDS Tower 10 Office, Banking and
Minneapolis, MN 55440 Certificates Group
Joseph M. Barsky III, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
Timothy V. Bechtold, Vice President--Insurance Product Development
IDS Financial Services Inc. Vice President-Insurance
IDS Tower 10 Product Development
Minneapolis, MN 55440
IDS Life Insurance Company Vice President-Insurance
Product Development
John D. Begley, Region Vice President--Mid-Central Region
IDS Insurance Agency of Alabama Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Arkansas Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Massachusetts Vice President-Mid-Central
Inc. Region
IDS Insurance Agency of Nevada, Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of New Mexico Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of North Carolina Vice President-Mid-Central
Inc. Region
IDS Insurance Agency of Ohio Inc. Vice President-Mid-Central
Inc. Region
IDS Insurance Agency of Wyoming Inc. Vice President-Mid-Central
Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 Mid-Central Region
Minneapolis, MN 55440
Carl E. Beihl, Vice President--Strategic Technology Planning
IDS Financial Services Inc. Vice President-
IDS Tower 10 Strategic Technology
Minneapolis, MN 55440 Planning
Alan F. Bignall, Vice President--Financial Planning Systems
IDS Financial Services Inc. Vice President-
IDS Tower 10 Financial Planning
Minneapolis, MN 55440 Systems
<PAGE>
PAGE 4
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Brent L. Bisson, Region Vice President--Northwest Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 Northwest Region
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Northwest Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Northwest Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Northwest Region
IDS Insurance Agency of Nevada, Inc. Vice President-
Northwest Region
IDS Insurance Agency of New Mexico Vice President-
Inc. Northwest Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Northwest Region
IDS Insurance Agency of Ohio Inc. Vice President-
Northwest Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Northwest Region
Thomas J. Brakke, Vice President--Investment Services and
Investment Research
IDS Financial Services Inc. Vice President-Investment
IDS Tower 10 Services and Investment
Minneapolis, MN 55440 Research
Karl J. Breyer, Director, Senior Vice President and General Counsel
IDS Financial Services Inc. Senior Vice President
IDS Tower 10 and Special Counsel
Minneapolis, MN 55440
IDS Aircraft Services Corporation Director and President
American Express Minnesota Foundation Director
John L. Burbidge, Vice President--Government Relations
IDS Life Insurance Company Vice President
IDS Financial Services Inc. Vice President-
IDS Tower 10 Government Relations
Minneapolis, MN 55440
Harold E. Burke, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Daniel J. Candura, Vice President--Marketing Support
IDS Financial Services Inc. Vice President-Marketing
IDS Tower 10 Support
Minneapolis, MN 55440
<PAGE>
PAGE 5
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Orison Y. Chaffee III, Vice President--Field Real Estate
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James Choat, Director and Senior Vice President--Field Management
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Field Management
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President--North
Central Region
IDS Insurance Agency of Arkansas Inc. Vice President--North
Central Region
IDS Insurance Agency of Massachusetts Vice President--North
Inc. Central Region
IDS Insurance Agency of Nevada Inc. Vice President--North
Central Region
IDS Insurance Agency of New Mexico Vice President--North
Inc. Central Region
IDS Insurance Agency of North Carolina Vice President--North
Inc. Central Region
IDS Insurance Agency of Ohio Inc. Vice President--North
Central Region
IDS Insurance Agency of Wyoming Inc. Vice President-- North
Central Region
IDS Property Casualty Director
American Express Minnesota Foundation Director
Kenneth J. Ciak, Vice President and General Manager--IDS Property
Casualty
IDS Property Casualty Insurance Co. Director and President
1 WEG Blvd
DePere, Wisconsin 54115
IDS Financial Services Inc. Vice President and General
Manager-IDS Property
Casualty
Roger C. Corea, Region Vice President--Northeast Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 Northeast Region
Minneapolis, MN 55440
IDS Life Insurance Co. of New York Director
Box 5144
Albany, NY 12205
IDS Insurance Agency of Alabama Inc. Vice President -
Northeast Region
IDS Insurance Agency of Arkansas Inc. Vice President -
Northeast Region
IDS Insurance Agency of Massachusetts Vice President -
Inc. Northeast Region
<PAGE>
PAGE 6
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Insurance Agency of Nevada Inc. Vice President -
Northeast Region
IDS Insurance Agency of New Mexico Inc. Vice President -
Northeast Region
IDS Insurance Agency of North Carolina Vice President -
Inc. Northeast Region
IDS Insurance Agency of Ohio, Inc. Vice President -
Northeast Region
IDS Insurance Agency of Wyoming Inc. Vice President -
Northeast Region
Kevin F. Crowe, Region Vice President--Atlantic Region
IDS Financial Services Inc. Region Vice President -
IDS Tower 10 Atlantic Region
Minneapolis, MN 55440
Alan R. Dakay, Vice President--Institutional Insurance Marketing
IDS Financial Services Inc. Vice President -
IDS Tower 10 Institutional Insurance
Minneapolis, MN 55440 Marketing
American Enterprise Life Insurance Co. Director and President
IDS Life Insurance Company Vice President -
Institutional Insurance
Marketing
William F. Darland, Region Vice President--South Central Region
IDS Insurance Agency of Alabama Inc. Vice President-
South Central Region
IDS Insurance Agency of Arkansas Inc. Vice President -
South Central Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. South Central Region
IDS Insurance Agency of Nevada Inc. Vice President-
South Central Region
IDS Insurance Agency of New Mexico Inc. Vice President-
South Central Region
IDS Insurance Agency of North Carolina Vice President-
Inc. South Central Region
IDS Insurance Agency of Ohio Inc. Vice President-
South Central Region
IDS Insurance Agency of Wyoming Inc. Vice President-
South Central Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 South Central Region
Minneapolis, MN 55440
<PAGE>
PAGE 7
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
William H. Dudley, Director, Executive Vice President--Investment
and Brokerage Operations
IDS Financial Services Inc. Director, Executive Vice
IDS Tower 10 President-Investment and
Minneapolis, MN 55440 Brokerage Operations
IDS Capital Holdings Inc. Director
IDS Futures Corporation Director
IDS Advisory Group Inc. Director
IDS Futures III Corporation Director
IDS International, Inc. Director
IDS Securities Corporation Director, Chairman of the
Board, President and
Chief Executive Officer
IDS Life Insurance Company Vice President
American Enterprise Investment Director
Services Inc.
Roger S. Edgar, Director, Senior Vice President--Information
Systems
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Information Systems
Minneapolis, MN 55440
Gordon L. Eid, Director, Senior Vice President and Deputy General
Counsel
IDS Insurance Agency of Alabama Inc. Director and Vice President
IDS Insurance Agency of Arkansas Inc. Director and Vice President
IDS Insurance Agency of Massachusetts Director and Vice President
Inc.
IDS Insurance Agency of Nevada Inc. Director and Vice President
IDS Insurance Agency of New Mexico Inc. Director and Vice President
IDS Insurance Agency of North Carolina Director and Vice President
Inc.
IDS Insurance Agency of Ohio Inc. Director and Vice President
IDS Insurance Agency of Wyoming Inc. Director and Vice President
IDS Real Estate Services, Inc. Vice President
IDS Financial Services Inc. Senior Vice President and
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Investors Syndicate Development Corp. Director
IDS Real Estate Services, Inc. Vice President
Mark A. Ernst, Vice President--Tax and Business Services
IDS Financial Services Inc. Vice President-Tax and
IDS Tower 10 Business Services
Minneapolis, MN 55440
IDS Tax and Business Services Vice President-Tax and
Business Services
<PAGE>
PAGE 8
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Gordon M. Fines, Vice President--Mutual Fund Equity Investments
IDS Financial Services Inc. Vice President-
Mutual Fund Equity
Investments
IDS International Inc. Vice President and
Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS Tower 10
Minneapolis, MN 55440
Louis C. Fornetti, Director, Senior Vice President--Corporate
Controller
IDS Financial Services Inc. Senior Vice President-
Corporate Controller
IDS Property Casualty Insurance Co. Director and Vice President
IDS Tower 10
Minneapolis, MN 55440
American Enterprise Investment Vice President
Services Inc.
IDS Capital Holdings Inc. Senior Vice President
IDS Certificate Company Vice President
IDS Insurance Agency of Alabama Inc. Vice President
IDS Insurance Agency of Arkansas Inc. Vice President
IDS Insurance Agency of Massachusetts Vice President
Inc.
IDS Insurance Agency of Nevada Inc. Vice President
IDS Insurance Agency of New Mexico Inc. Vice President
IDS Insurance Agency of North Carolina Vice President
Inc.
IDS Insurance Agency of Ohio Inc. Vice President
IDS Insurance Agency of Wyoming Inc. Vice President
IDS Life Series Fund, Inc. Vice President
IDS Life Variable Annuity Funds A&B Vice President
IDS Real Estate Services, Inc. Vice President
IDS Securities Corporation Vice President
Investors Syndicate Development Corp. Vice President
IDS Bank & Trust Director
Douglas L. Forsberg, Vice President--Securities Services
IDS Financial Services Inc. Vice President-
Securities Services
IDS Securities Services Vice President and
General Manager
American Enterprise Investment Director, President and
Services Inc. Chief Executive Officer
<PAGE>
PAGE 9
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Carl W. Gans, Region Vice President--North Central Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 North Central Region
Minneapolis, MN 55440
Robert G. Gilbert, Vice President--Real Estate
IDS Financial Services Inc. Vice President-
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden, Vice President--Field Compensation Development
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Compensation Development
Minneapolis, MN 55440
Harvey Golub, Director
American Express Company Director and President
American Express Tower
World Financial Center
New York, New York 10285
American Express Travel Chairman and Chief
Related Services Company, Inc. Executive Officer
IDS Bond Fund, Inc. Director
IDS California Tax-Exempt Trust Trustee
IDS Discovery Fund, Inc. Director
IDS Equity Plus Fund, Inc. Director
IDS Extra Income Fund, Inc. Director
IDS Federal Income Fund, Inc. Director
IDS Global Series, Inc. Director
IDS Growth Fund, Inc. Director
IDS High Yield Tax-Exempt Fund, Inc. Director
IDS International Fund, Inc. Director
IDS Investors Series, Inc. Director
IDS Managed Retirement Fund, Inc. Director
IDS Market Advantage Series, Inc. Director
IDS Money Market Series, Inc. Director
IDS New Dimensions Fund, Inc. Director
IDS Precious Metals Fund, Inc. Director
IDS Progressive Fund, Inc. Director
IDS Selective Fund, Inc. Director
IDS Special Tax-Exempt Series Trust Trustee
IDS Stock Fund, Inc. Director
IDS Strategy Fund, Inc. Director
IDS Tax-Exempt Bond Fund, Inc. Director
IDS Tax-Free Money Fund, Inc. Director
IDS Utilities Income Fund, Inc. Director
IDS Life Capital Resource Fund, Inc. Director
<PAGE>
PAGE 10
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Life Special Income Fund, Inc. Director
IDS Life Managed Fund, Inc. Director
IDS Life Moneyshare Fund, Inc. Director
National Computer Systems, Inc. Director
11000 Prairie Lakes Drive
Minneapolis, MN 55440
Morris Goodwin Jr., Vice President and Corporate Treasurer
American Express Minnesota Foundation Director, Vice President
and Treasurer
American Enterprise Investment Vice President and
Services Inc. Treasurer
IDS Aircraft Services Corporation Vice President and
Treasurer
IDS Advisory Group Inc. Vice President and
Treasurer
IDS Cable Corporation Vice President and
Treasurer
IDS Cable II Corporation Vice President and
Treasurer
IDS Capital Holdings Inc. Vice President and
Treasurer
IDS Certificate Company Vice President and
Treasurer
IDS Insurance Agency of Alabama Inc. Vice President and
Treasurer
IDS Insurance Agency of Arkansas Inc. Vice President and
Treasurer
IDS Insurance Agency of Massachusetts Vice President and
Inc. Treasurer
IDS Insurance Agency of Nevada Inc. Vice President and
Treasurer
IDS Insurance Agency of New Mexico Inc. Vice President and
Treasurer
IDS Insurance Agency of North Carolina Vice President and
Inc. Treasurer
IDS Insurance Agency of Ohio Inc. Vice President and
Treasurer
IDS Insurance Agency of Wyoming Inc. Vice President and
Treasurer
IDS International, Inc. Vice President and
Treasurer
IDS Life Series Fund, Inc. Vice President and
Treasurer
IDS Life Variable Annuity Funds A&B Vice President and
Treasurer
IDS Management Corporation Vice President and
Treasurer
<PAGE>
PAGE 11
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Partnership Services Corporation Vice President and
Treasurer
IDS Plan Services of California, Inc. Vice President and
Treasurer
IDS Property Casualty Insurance Co. Vice President and
Treasurer
IDS Real Estate Services, Inc Vice President and
Treasurer
IDS Realty Corporation Vice President and
Treasurer
IDS Securities Corporation Vice President and
Treasurer
Investors Syndicate Development Corp. Vice President and
Treasurer
Peninsular Properties, Inc. Vice President and
Treasurer
IDS Financial Services Inc. Vice President and
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Sloan Financial Group, Inc. Director
2 Mutual Plaza
501 Willard Street
Durham, NC 27701
NCM Capital Management Group, Inc. Director
2 Mutual Plaza
501 Willard Street
Durham, NC 27701
Suzanne Graf, Vice President--Systems Services
IDS Financial Services Inc. Vice President-
IDS Tower 10 Systems Services
Minneapolis, MN 55440
David A. Hammer, Vice President and Marketing Controller
IDS Financial Services Inc. Vice President and
IDS Tower 10 Marketing Controller
Minneapolis, MN 55440
IDS Plan Services of California, Inc. Director and Vice President
Robert L. Harden, Region Vice President--Mid-Atlantic Region
IDS Insurance Agency of Alabama Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Mid Atlantic Region
IDS Insurance Agency of Nevada Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Mid Atlantic Region
<PAGE>
PAGE 12
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Insurance Agency of North Carolina Vice President-
Inc. Mid Atlantic Region
IDS Insurance Agency of Ohio Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Mid Atlantic Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 Mid Atlantic Region
Minneapolis, MN 55440
Lorraine R. Hart, Vice President--Insurance Investments
IDS Financial Services Inc. Vice President-Insurance
IDS Tower 10 Investments
Minneapolis, MN 55440
American Enterprise Life Vice President-Investments
Insurance Company
IDS Life Insurance Company Vice President-Investments
Mark S. Hays, Vice President--Senior Portfolio Manager, IDS
International
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager, IDS
Minneapolis, MN 55440 International
IDS Fund Management Limited Director
IDS International, Inc. Senior Vice President
Brian M. Heath, Region Vice President--Southwest Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 Southwest Region
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Southwest Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Southwest Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Southwest Region
IDS Insurance Agency of Nevada Inc. Vice President-
Southwest Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Southwest Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Southwest Region
IDS Insurance Agency of Ohio Inc. Vice President-
Southwest Region
IDS Insurance Agency of Texas Inc. Director and President
IDS Insurance Agency of Wyoming Inc. Vice President-
Southwest Region
<PAGE>
PAGE 13
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Raymond E. Hirsch, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
IDS Advisory Group Inc. Vice President
James G. Hirsh, Vice President and Assistant General Counsel
IDS Insurance Agency of Alabama Inc. Vice President
IDS Insurance Agency of Arkansas Inc. Vice President
IDS Insurance Agency of Massachusetts Vice President
Inc.
IDS Insurance Agency of Nevada Inc. Vice President
IDS Insurance Agency of New Mexico Inc. Vice President
IDS Insurance Agency of North Carolina Vice President
Inc.
IDS Insurance Agency of Ohio Inc. Vice President
IDS Insurance Agency of Wyoming Inc. Vice President
IDS Financial Services Inc. Vice President and
Assistant General Counsel
IDS Securities Corporation Director, Vice President
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Kevin P. Howe, Vice President--Government and Customer Relations
and Chief Compliance Officer
IDS Financial Services Inc. Vice President-
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations
American Enterprise Investment Vice President and
Services Inc. Compliance Officer
David R. Hubers, Director, President and Chief Executive Officer
IDS Financial Services Inc. Chairman, Chief Executive
IDS Tower 10 Officer and President
Minneapolis, MN 55440
IDS Aircraft Services Corporation Director
IDS Certificate Company Director
IDS Deposit Corp. Director
IDS Life Insurance Company Director and Chairman
of the Board
IDS Plan Services of California, Inc. Director and President
IDS Property Casualty Insurance Co. Director and Chairman of
the Board
Peninsular Properties, Inc. Director and Chairman of
Board
Marietta Johns, Director; Senior Vice President--Field Management
IDS Financial Services Inc. Senior Vice President-
ACUMA Ltd.
<PAGE>
PAGE 14
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Douglas R. Jordal, Vice President--Taxes
IDS Financial Services Inc. Vice President-Taxes
IDS Tower 10
Minneapolis, MN 55440
IDS Aircraft Services Corporation Vice President
Craig A. Junkins, Vice President--IDS 1994 Implementation Planning
and Financial Planning Development
IDS Financial Services Inc. Vice President-IDS 1994
IDS Tower 10 Implementation Planning and
Minneapolis, MN 55440 Financial Planning
Development
James E. Kaarre, Vice President--Marketing Information
IDS Financial Services Inc. Vice President-
IDS Tower 10 Marketing Information
Minneapolis, MN 55440
Susan D. Kinder, Director and Senior Vice President--Human
Resources
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Human Resources
Minneapolis, MN 55440
American Express Minnesota Foundation Director
Richard W. Kling, Vice President--Insurance Marketing and Products
IDS Financial Services Inc. Vice President-
Insurance Marketing and
Products
IDS Insurance Agency of Alabama Inc. Director and Executive Vice
President
IDS Insurance Agency of Arkansas Inc. Director and Executive Vice
President
IDS Insurance Agency of Massachusetts Director and Executive Vice
Inc. President
IDS Insurance Agency of Nevada Inc. Director and Executive Vice
President
IDS Insurance Agency of New Mexico Inc. Director and Executive Vice
President
IDS Insurance Agency of North Carolina Director and Executive Vice
Inc. President
IDS Insurance Agency of Ohio Inc. Director and Executive Vice
President
IDS Insurance Agency of Wyoming Inc. Director and Executive Vice
President
IDS Life Series Fund, Inc. Director
IDS Life Variable Annuity Funds A&B Member of Board of Managers
<PAGE>
PAGE 15
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Life Insurance Company Director and Executive Vice
IDS Tower 10 President-Marketing and
Minneapolis, MN 55440 Products
IDS Life Insurance Company Director
of New York
P.O. Box 5144
Albany, NY 12205
Harold Knutson, Vice President--System Services
IDS Financial Services Inc. Vice President--
IDS Tower 10 System Services
Minneapolis, MN 55440
Paul F. Kolkman, Vice President--Corporate Actuary
IDS Financial Services Inc. Vice President-
Corporate Actuary
IDS Life Insurance Company Director and Vice
President-Finance
IDS Life Series Fund, Inc. Vice President and Chief
IDS Tower 10 Actuary
Minneapolis, MN 55440
Claire Kolmodin, Vice President--Service Quality
IDS Financial Services Inc. Vice President-
IDS Tower 10 Service Quality
Minneapolis, MN 55440
David S. Kraeger, Vice President--Field Management Development
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Management Development
Minneapolis, MN 55440
Christopher R. Kudrna, Vice President--Systems and Technology
Development
IDS Financial Services Inc. Vice President-Systems and
IDS Tower 10 Technology Development
Minneapolis, MN 55440
Steven C. Kumagai, Director, Senior Vice President and Associate
General Sales Manager
IDS Financial Services Inc. Director; Senior Vice
IDS Tower 10 President and Associate
Minneapolis, MN 55440 General Sales Manager
<PAGE>
PAGE 16
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Mitre Kutanovski, Region Vice President--Midwest Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 Midwest Region
Minneapolis, MN 55440
Edward Labenski, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-
Senior Portfolio
Manager
IDS Advisory Group Inc. Senior Vice President
IDS Tower 10
Minneapolis, MN 55440
Peter L. Lamaison, Vice President--IDS International Division
IDS Financial Services Inc. Vice President-
IDS International
Division
IDS Fund Management Limited Director and Chairman of
the Board
IDS International, Inc. Director, President and
IDS Tower 10 Chief Executive Officer
Minneapolis, MN 55440
Kurt A. Larson, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
Ryan R. Larson, Vice President--Annuity Product Development
IDS Financial Services Inc. Vice President-
Annuity Product
Development
IDS Life Insurance Company Vice President,
IDS Tower 10 Annuity Product
Minneapolis, MN 55440 Development
Daniel E. Laufenberg, Vice President and Chief U.S. Economist
IDS Financial Services Inc. Vice President and
IDS Tower 10 Chief U.S. Economist
Minneapolis, MN 55440
Peter A. Lefferts, Director and Senior Vice President--Banking and
Certificates
IDS Deposit Corp. Director and Chairman of
the Board
IDS Bank & Trust Director and Chairman of
the Board
<PAGE>
PAGE 17
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Investors Syndicate Development Corp. Director, Chairman of the
Board and President
IDS Plan Services of California, Inc. Director
IDS Sales Support Inc. Director
IDS Certificate Company Director, Chairman of the
IDS Tower 10 Board and President
Minneapolis, MN 55440
Douglas A. Lennick, Director, Senior Vice President and General
Sales Manager
IDS Financial Services Inc. Director; Senior Vice
IDS Tower 10 President and General Sales
Minneapolis, MN 55440 Manager
Mary Malevich, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-
Senior Portfolio
Manager
IDS International Inc. Vice President and
Portfolio Manager
Fred A. Mandell, Vice President--Certificate Operations
IDS Certificate Company Vice President-Operations
IDS Financial Services Inc. Vice President-Certificate
IDS Tower 10 Operations
Minneapolis, MN 55440
William J. McKinney, Vice President--Field Management Support
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Management Support
Minneapolis, MN 55440
Thomas Medcalf, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
William C. Melton, Vice President-International Research and Chief
International Economist
IDS Financial Services Inc. Vice President-
IDS Tower 10 International Research and
Minneapolis, MN 55440 Chief International
Economist
Janis E. Miller, Vice President--Mutual Funds Products and
Marketing
IDS Financial Services Inc. Vice President-Mutual Funds
IDS Tower 10 Products and Marketing
Minneapolis, MN 55440<PAGE>
PAGE 18
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
James A. Mitchell, Director, Senior Vice President--Insurance
Operations
American Enterprise Life Insurance Director and Chairman of
Company the Board
P.O. Box 534
Minneapolis, MN 55440
IDS Plan Services of California, Inc. Director
IDS Property Casualty Insurance Co. Director
IDS Insurance Agency of Alabama Inc. Director and President
IDS Insurance Agency of Arkansas Inc. Director and President
IDS Insurance Agency of Massachusetts Director and President
Inc.
IDS Insurance Agency of Nevada Inc. Director and President
IDS Insurance Agency of New Mexico Inc. Director and President
IDS Insurance Agency of North Carolina Director and President
Inc.
IDS Insurance Agency of Ohio Inc. Director and President
IDS Insurance Agency of Wyoming Inc. Director and President
IDS Life Insurance Company Director, President
IDS Tower 10 and Chief Executive
Minneapolis, MN 55440 Officer
IDS Financial Services Inc. Senior Vice President-
Insurance Operations
IDS Life Series Fund, Inc. Director and President
IDS Life Variable Annuity Funds A Member of the Board of
and B Managers, Chairman and
President
IDS Life Capital Resource Fund, Inc. Director and Executive
Vice President
IDS Life Special Income Fund, Inc. Director and Executive
Vice President
IDS Life Managed Fund, Inc. Director and Executive
Vice President
IDS Life Moneyshare Fund, Inc. Director and Executive
IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Life Insurance Company Director, Chairman
of New York of the Board and Chief
P.O. Box 5144 Executive Officer
Albany, NY 12205
Pamela J. Moret, Vice President--Corporate Communications
IDS Financial Services Inc. Vice President-
IDS Tower 10 Corporate Communications
Minneapolis, MN 55440
American Express Minnesota Foundation Director and President
Robert J. Neis, Vice President--Information Systems Operations
IDS Financial Services Inc. Vice President-
IDS Tower 10 Information Systems
Minneapolis, MN 55440 Operations
<PAGE>
PAGE 19
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Vernon F. Palen, Region Vice President--Rocky Mountain Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 Rocky Mountain Region
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Rocky Mountain Region
IDS Insurance Agency of Nevada Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Rocky Mountain Region
IDS Insurance Agency of Ohio Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Rocky Mountain Region
James R. Palmer, Vice President--Insurance Operations
IDS Financial Services Inc. Vice President-
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
IDS Life Insurance Company Vice President-Taxes
Judith A. Pennington, Vice President--Field Technology
IDS Financial Services Inc. Vice President-
IDS Tower 10 Field Technology
Minneapolis, MN 55440
George M. Perry, Vice President--Corporate Strategy and Development
IDS Financial Services Inc. Vice President-
IDS Tower 10 Corporate Strategy
Minneapolis, MN 55440 and Development
IDS Property Casualty Insurance Co. Director
IDS Insurance Agency of Alabama Inc. Director and Executive
Vice President
IDS Insurance Agency of Arkansas Inc. Director and Executive
Vice President
IDS Insurance Agency of Massachusetts Director and Executive
Inc. Vice President
IDS Insurance Agency of Nevada Inc. Director and Executive
Vice President
<PAGE>
PAGE 20
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Insurance Agency of New Mexico Inc. Director and Executive
Inc. Vice President
IDS Insurance Agency of North Carolina Director and Executive
Inc. Vice President
IDS Insurance Agency of Ohio Inc. Director and Executive
Vice President
IDS Insurance Agency of Wyoming Inc. Director and Executive
Vice President
Susan B. Plimpton, Vice President -- American Express Marketing
IDS Financial Services Inc. Vice President--
IDS Tower 10 American Express Marketing
Minneapolis, MN 55440
Ronald W. Powell, Vice President and Assistant General Counsel
IDS Cable Corporation Vice President and
Assistant Secretary
IDS Cable II Corporation Vice President and
Assistant Secretary
IDS Realty Corporation Vice President and
Assistant Secretary
IDS Financial Services Inc. Vice President and
Assistant General Counsel
IDS Management Corporation Vice President and
Assistant Secretary
IDS Partnership Services Corporation Vice President and
Assistant Secretary
IDS Plan Services of California, Inc. Vice President and
Assistant Secretary
IDS Life Series Fund, Inc. Secretary
IDS Life Variable Annuity Funds Secretary
A and B
IDS Partnership Services Corporation Vice President and
IDS Tower 10 Assistant Secretary
Minneapolis, MN 55440
James M. Punch, Vice President--TransAction Services
IDS Financial Services Inc. Vice President-Trans
IDS Tower 10 Action Services
Minneapolis, MN 55440
Frederick C. Quirsfeld, Vice President--Taxable Mutual Fund
Investments
IDS Financial Services Inc. Vice President--
IDS Tower 10 Taxable Mutual Fund
Minneapolis, MN 55440 Investments
<PAGE>
PAGE 21
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Roger B. Rogos, Region Vice President--Great Lakes Region
IDS Insurance Agency of Alabama Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Great Lakes Region
IDS Insurance Agency of Nevada Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Great Lakes Region
IDS Insurance Agency of Ohio Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Great Lakes Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 Great Lakes Region
Minneapolis, MN 55440
ReBecca K. Roloff, Vice President--1994 Program Director
IDS Life Insurance Company Director and Executive Vice
IDS Tower 10 President-Operations
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-1994
Program Director
Stephen W. Roszell, Vice President--Advisory Institutional
Marketing
IDS Advisory Group Inc. President and Chief
IDS Tower 10 Executive Officer
Minneapolis, MN 55440
IDS Financial Services Inc. Vice President-Advisory
Institutional Marketing
Robert A. Rudell, Vice President--IDS Institutional Retirement
Services
IDS Financial Services Inc. Vice President-IDS
IDS Tower 10 Institutional Retirement
Minneapolis, Mn 55440 Services
John P. Ryan, Vice President and General Auditor
IDS Financial Services Inc. Vice President and General
IDS Tower 10 Auditor
Minneapolis, MN 55440
<PAGE>
PAGE 22
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Erven A. Samsel, Director and Senior Vice President--Field
Management
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Field Management
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
New England Region
IDS Insurance Agency of Arkansas Inc. Vice President-
New England Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. New England Region
IDS Insurance Agency of Nevada Inc. Vice President-
New England Region
IDS Insurance Agency of New Mexico Inc. Vice President-
New England Region
IDS Insurance Agency of North Carolina Vice President-
New England Region
IDS Insurance Agency of Ohio Inc. Vice President-
New England Region
IDS Insurance Agency of Wyoming Inc. Vice President-
New England Region
R. Reed Saunders, Director, Senior Vice President and Chief
Marketing Officer
IDS Property Casualty Insurance Co. Director
IDS Financial Services Inc. Director, Senior Vice
IDS Tower 10 President and Chief
Minneapolis, MN 55440 Marketing Officer
Stuart A. Sedlacek, Vice President--Structured Products Group
IDS Financial Services Inc. Vice President-
IDS Tower 10 Structured Products
Minneapolis, MN 55440 Group
Donald K. Shanks, Vice President--Property Casualty
IDS Property Casualty Insurance Co. Senior Vice President
IDS Financial Services Inc. Vice President-
IDS Tower 10 Property Casualty
Minneapolis, MN 55440
F. Dale Simmons, Vice President--Senior Portfolio Manager,
Insurance Investments
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440 Insurance Investments
American Enterprise Life Insurance Co. Vice President-Real
Estate Loan Management
IDS Certificate Company Vice President-Real
Estate Loan Management
<PAGE>
PAGE 23
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Life Insurance Company Vice President-Real
Estate Loan Management
IDS Partnership Services Corporation Vice President
IDS Real Estate Services Inc. Director and Vice President
IDS Realty Corporation Vice President
Peninsular Properties, Inc. Director and President
Judy P. Skoglund, Vice President--Human Resources and Organization
Development
IDS Financial Services Inc. Vice President-Human
IDS Tower 10 Resources and Organization
Minneapolis, MN 55440 Development
Julian W. Sloter, Region Vice President--Southeast Region
IDS Insurance Agency of Alabama Inc. Vice President-
Southeast Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Southeast Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Southeast Region
IDS Insurance Agency of Nevada Inc. Vice President-
Southeast Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Southeast Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Southeast Region
IDS Insurance Agency of Ohio Inc. Vice President-
Southeast Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Southeast Region
IDS Financial Services Inc. Region Vice President-
IDS Tower 10 Southeast Region
Minneapolis, MN 55440
Ben C. Smith, Vice President--Workplace Marketing
IDS Financial Services Inc. Vice President-
IDS Tower 10 Workplace Marketing
Minneapolis, MN 55440
William A. Smith, Vice President--Finance and CFO/UK
IDS Financial Services Inc. Vice President-
IDS Tower 10 Finance and CFO/UK
Minneapolis, MN 55440
IDS Life Insurance Company Director
IDS Life Capital Resource Fund, Inc. Treasurer
IDS Life Special Income Fund, Inc. Treasurer
IDS Life Managed Fund, Inc. Treasurer
IDS Life Moneyshare Fund, Inc. Treasurer
<PAGE>
PAGE 24
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
James B. Solberg, Vice President--Advanced Financial Planning
IDS Financial Services Inc. Vice President-
IDS Tower 10 Advanced Financial Planning
Minneapolis, MN 55440
Bridget Sperl, Vice President--Human Resources Management Services
IDS Financial Services Inc. Vice President-Human
IDS Tower 10 Resources Management
Minneapolis, MN 55440
Jeffrey E. Stiefler, Director
American Express Company President
Lois A. Stilwell, Vice President--Sales Training and Communications
IDS Financial Services Inc. Vice President-
IDS Tower 10 Sales Training and
Minneapolis, MN 55440 Communications
William A. Stoltzmann, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
Assistant General Counsel
IDS Life Insurance Company Vice President, General
IDS Tower 10 Counsel and Secretary
Minneapolis, MN 55440
IDS Life Variable Annuity Funds General Counsel and
A and B Assistant Secretary
IDS Life Series Fund, Inc. General Counsel and
Assistant Secretary
American Enterprise Life Insurance Director, Vice President,
Company General Counsel
P.O. Box 534 and Secretary
Minneapolis, MN 55440
James J. Strauss, Vice President--Corporate Planning and Analysis
IDS Financial Services Inc. Vice President-
IDS Tower 10 Corporate Planning and
Minneapolis, MN 55440 Analysis
Jeffrey J. Stremcha, Vice President--Information Resource
Management/ISD
IDS Financial Services Inc. Vice President-Information
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440
<PAGE>
PAGE 25
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Fenton R. Talbott, Director and Senior Vice President--ACUMA Ltd.
ACUMA Ltd. President and Chief
ACUMA House Executive Officer
The Glanty, Egham
Surrey TW 20 9 AT
UK
Neil G. Taylor, Vice President--IDS 1994
IDS Financial Services Inc. Vice President
IDS Tower 10 IDS 1994
Minneapolis, MN 55440
John R. Thomas, Director and Senior Vice President--Mutual Funds
Operations
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Mutual Funds Operations
Minneapolis, MN 55440
IDS Blue Chip Advantage Fund Director
IDS Bond Fund, Inc. Director
IDS California Tax-Exempt Trust Trustee
IDS Cash Management Fund, Inc. Director
IDS Discovery Fund, Inc. Director
IDS Diversified Equity Income Fund Director
IDS Equity Plus Fund, Inc. Director
IDS Extra Income Fund, Inc. Director
IDS Federal Income Fund, Inc. Director
IDS Global Bond Fund, Inc. Director
IDS Global Growth Fund Director
IDS Growth Fund, Inc. Director
IDS High Yield Tax-Exempt Fund, Inc. Director
IDS Managed Retirement Fund, Inc. Director
IDS Market Advantage Series, Inc. Director
IDS Mutual Director
IDS New Dimensions Fund, Inc. Director
IDS Planned Investment Account Director
IDS Precious Metals Fund, Inc. Director
IDS Progressive Fund, Inc. Director
IDS Selective Fund, Inc. Director
IDS Special Tax-Exempt Series Trust Trustee
IDS Stock Fund, Inc. Director
IDS Strategy Fund, Inc. Director
IDS Tax-Exempt Bond Fund, Inc. Director
IDS Tax-Free Money Fund, Inc. Director
IDS Utilities Income Fund, Inc. Director
American Express Minnesota Foundation Director
IDS Cable Corporation Director and President
IDS Cable II Corporation Director and President
IDS Futures Corporation Director and President
IDS Futures III Corporation Director and President
IDS Management Corporation Director and President
IDS Partnership Services Corporation Director and President
IDS Realty Corporation Director and President
<PAGE>
PAGE 26
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Melinda S. Urion, Vice President--Insurance Controller
IDS Financial Services Inc. Vice President-Insurance
IDS Tower 10 Controller
Minneapolis, MN 55440
IDS Life Insurance Company Director, Vice President,
Controller and Treasurer
IDS Life Series Fund, Inc. Vice President and
Controller
American Enterprise Life Vice President, Controller
Insurance Company and Treasurer
Charles R. Utoft, Vice President--Equity and Fixed Income Trading
IDS Financial Services Inc. Vice President-Equity
IDS Tower 10 and Fixed Income Trading
Minneapolis, MN 55440
Wesley W. Wadman, Vice President--Senior Portfolio Manager
IDS Fund Management Limited Director
IDS Financial Services Inc. Vice President-
Senior Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS International, Inc. Senior Vice President
IDS Tower 10
Minneapolis, MN 55440
Norman Weaver, Jr., Director and Senior Vice President--Field
Management
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Field Management
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Pacific Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Pacific Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Pacific Region
IDS Insurance Agency of Nevada Inc. Vice President-
Pacific Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Pacific Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Pacific Region
IDS Insurance Agency of Ohio Inc. Vice President-
Pacific Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Pacific Region
Michael L. Weiner, Vice President--Corporate Tax Operations
IDS Capital Holdings Inc. Vice President
IDS Financial Services Inc. Vice President-Corporate
Tax Operations<PAGE>
PAGE 27
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Futures III Corporation Vice President, Treasurer
and Secretary
IDS Futures Brokerage Group Vice President
IDS Futures Corporation Vice President, Treasurer
IDS Tower 10 and Secretary
Minneapolis, MN 55440
Lawrence J. Welte, Vice President--Investment Administration
IDS Financial Services Inc. Vice President-
IDS Tower 10 Investment Administration
Minneapolis, MN 55440
IDS Securities Corporation Director, Executive Vice
President and Chief
Operating Officer
William N. Westhoff, Director and Senior Vice President--Fixed
Income Management
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Fixed Income Management
Minneapolis, MN 55440
American Enterprise Life Insurance Director
Company
Investors Syndicate Development Corp. Director
IDS Partnership Services Corporation Director, Vice President
IDS Property Casualty Insurance Vice President-Investment
Company Officer
IDS Real Estate Services Inc. Director, Chairman of the
Board and President
IDS Realty Corporation Director and Vice President
Edwin Wistrand, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
IDS Tower 10 Assistant General Counsel
Minneapolis, MN 55440
Michael Woodward, Director and Senior Vice President--Field
Management
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Field Management
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
North Region
IDS Insurance Agency of Arkansas Inc. Vice President-
North Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. North Region
IDS Insurance Agency of Nevada Inc. Vice President-
North Region
IDS Insurance Agency of New Mexico Inc. Vice President-
North Region
<PAGE>
PAGE 28
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Insurance Agency of North Carolina Vice President-
Inc. North Region
IDS Insurance Agency of Ohio Inc. Vice President-
North Region
IDS Insurance Agency of Wyoming Inc. Vice President-
North Region
IDS Life Insurance Company of New York Director
<PAGE>
PAGE 29
Item 29. Principal Underwriters.
(a) IDS Financial Services Inc. acts as principal underwriter
for the following investment companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS
Discovery Fund, Inc.; IDS Equity Plus Fund, Inc.; IDS Extra
Income Fund, Inc.; IDS Federal Income Fund, Inc.; IDS Global
Series, Inc.; IDS Growth Fund, Inc.; IDS High Yield Tax-Exempt
Fund, Inc.; IDS International Fund, Inc.; IDS Investor's
Series, Inc.; IDS Managed Retirement Fund, Inc.; IDS Market
Advantage Series, Inc.; IDS Money Market Series, Inc.; IDS New
Dimensions Fund, Inc.; IDS Precious Metals Fund, Inc.; IDS
Progressive Fund, Inc.; IDS Selective Fund, Inc.; IDS Special
Tax-Exempt Series Trust; IDS Stock Fund, Inc.; IDS Strategy
Fund, Inc.; IDS Tax-Exempt Bond Fund, Inc.; IDS Tax-Free Money
Fund, Inc.; IDS Utilities Income Fund, Inc. and IDS
Certificate Company.
(b) As to each director, officer or partner of the principal
underwriter:
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald G. Abrahamson Vice President- None
IDS Tower 10 Field Administration
Minneapolis, MN 55440
Douglas A. Alger Vice President-Total None
IDS Tower 10 Compensation
Minneapolis, MN 55440
Jerome R. Amundson Vice President and None
IDS Tower 10 Controller-Mutual Funds
Minneapolis, MN 55440 Operations
Peter J. Anderson Senior Vice President- None
IDS Tower 10 Advisory Group and
Minneapolis, MN 55440 Equity Management
Ward D. Armstrong Vice President- None
IDS Tower 10 Sales and Marketing,
Minneapolis, MN 55440 IDS Institutional Retirement
Services
Alvan D. Arthur Region Vice President- None
IDS Tower 10 Pacific Region
Minneapolis, MN 55440
Kent L. Ashton Vice President-Group None
IDS Tower 10 Management Office,
Minneapolis, MN 55440 Banking and Certificates
Joseph M. Barsky III Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
<PAGE>
PAGE 30
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Timothy V. Bechtold Vice President-Insurance None
IDS Tower 10 Product Development
Minneapolis, MN 55440
John D. Begley Region Vice President- None
Olentangy Valley Center Mid-Central Region
Suite 300
7870 Olentangy River Rd.
Columbus, OH 43235
Carl E. Beihl Vice President- None
IDS Tower 10 Strategic Technology
Minneapolis, MN 55440 Planning
Alan F. Bignall Vice President- None
IDS Tower 10 Financial Planning
Minneapolis, MN 55440 Systems
Brent L. Bisson Region Vice President- None
Seafirst Financial Northwest Region
Center, Suite 1730
601 W. Riverside Ave.
Spokane, WA 99201
Thomas J. Brakke Vice President- None
IDS Tower 10 Investment Services
Minneapolis, MN 55440 and Investment Research
Karl J. Breyer Senior Vice President None
IDS Tower 10 and Special Counsel
Minneapolis, MN 55440
John L. Burbidge Vice President- None
IDS Tower 10 Government Relations
Minneapolis, MN 55440
Harold E. Burke Vice President None
IDS Tower 10 and Assistant
Minneapolis, MN 55440 General Counsel
Daniel J. Candura Vice President- None
IDS Tower 10 Marketing Support
Minneapolis, MN 55440
Orison Y. Chaffee III Vice President-Field None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James E. Choat Senior Vice President- None
Suite 124 Field Management
6210 Campbell Rd.
Dallas, TX 75248
<PAGE>
PAGE 31
Item 29. (continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Kenneth J. Ciak Vice President and None
IDS Property Casualty General Manager-
1400 Lombardi Avenue IDS Property Casualty
Green Bay, WI 54304
Roger C. Corea Region Vice President- None
345 Woodcliff Drive Northeast Region
Fairport, NY 14450
Kevin F. Crowe Region Vice President- None
IDS Tower 10 Atlantic Region
Minneapolis, MN 55440
Alan R. Dakay Vice President- None
IDS Tower 10 Institutional Insurance
Minneapolis, MN 55440 Marketing
William F. Darland Region Vice President- None
Suite 108C South Central Region
301 Sovereign Court
Manchester, MO 63011
William H. Dudley Director, Executive Director/
IDS Tower 10 Vice President- Trustee
Minneapolis MN 55440 Investment and Brokerage
Operations
Roger S. Edgar Senior Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440
Gordon L. Eid Senior Vice President None
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Mark A. Ernst Vice President- None
IDS Tower 10 Tax and Business Services
Minneapolis, MN 55440
Gordon M. Fines Vice President- None
IDS Tower 10 Mutual Fund Equity
Minneapolis MN 55440 Investments
Louis C. Fornetti Senior Vice President- None
IDS Tower 10 Corporate Controller
Minneapolis, MN 55440
Douglas L. Forsberg Vice President- None
IDS Tower 10 Securities Services
Minneapolis, MN 55440
<PAGE>
PAGE 32
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Carl W. Gans Region Vice President- None
IDS Tower 10 North Central Region
Minneapolis, MN 55440
Robert G. Gilbert Vice President- None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden Vice President- None
IDS Tower 10 Field Compensation
Minneapolis, MN 55440 Development
Morris Goodwin Jr. Vice President and None
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Suzanne Graf Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Robert L. Harden Region Vice President- None
Suite 403 Mid-Atlantic Region
8500 Leesburg Pike
Vienna, VA 22180
Lorraine R. Hart Vice President- None
IDS Tower 10 Insurance Investments
Minneapolis, MN 55440
Mark S. Hays Vice President-Senior None
IDS Tower 10 Portfolio Manager, IDS
Minneapolis, MN 55440 International
Brian M. Heath Region Vice President- None
IDS Tower 10 Southwest Region
Minneapolis, MN 55440
Raymond E. Hirsch Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Kevin P. Howe Vice President- None
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations
<PAGE>
PAGE 33
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
David R. Hubers Chairman, Chief None
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
Marietta Johns Senior Vice President- None
IDS Tower 10 ACUMA Ltd.
Minneapolis, MN 55440
Douglas R. Jordal Vice President-Taxes None
IDS Tower 10
Minneapolis, MN 55440
Craig A. Junkins Vice President - IDS 1994 None
IDS Tower 10 Implementation Planning
Minneapolis, MN 55440 and Financial Planning
Development
James E. Kaarre Vice President- None
IDS Tower 10 Marketing Information
Minneapolis, MN 55440
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
Richard W. Kling Vice President- None
IDS Tower 10 Insurance Marketing
Minneapolis, MN 55440 and Products
Harold Knutson Vice President- None
IDS Tower 10 System Services
Minneapolis, MN 55440
Paul F. Kolkman Vice President- None
IDS Tower 10 Corporate Actuary
Minneapolis, MN 55440
Claire Kolmodin Vice President- None
IDS Tower 10 Service Quality
Minneapolis, MN 55440
David S. Kreager Vice President-Field None
IDS Tower 10 Management Development
Minneapolis, MN 55440
Christopher Kudrna Vice President- None
IDS Tower 10 Systems and Technology
Minneapolis, MN 55440 Development
Steven C. Kumagai Director; Senior Vice None
IDS Tower 10 President- Associate
Minneapolis, MN 55440 General Sales Manager
<PAGE>
PAGE 34
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Mitre Kutanovski Region Vice President- None
IDS Tower 10 Midwest Region
Minneapolis, MN 55440
Edward Labenski Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Peter L. Lamaison Vice President- None
One Broadgate IDS International
London, England Division
Kurt A. Larson Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Ryan R. Larson Vice President- None
IDS Tower 10 Annuity Product
Minneapolis, MN 55440 Development
Daniel E. Laufenberg Vice President and None
IDS Tower 10 Chief U.S. Economist
Minneapolis, MN 55440
Douglas A. Lennick Director, Senior Vice None
IDS Tower 10 President and General
Minneapolis, MN 55440 Sales Manager
Mary J. Malevich Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Fred A. Mandell Vice President- None
IDS Tower 10 Certificate Operations
Minneapolis, MN 55440
William J. McKinney Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Support
Thomas Medcalf Vice President- None
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
William C. Melton Vice President-International None
IDS Tower 10 Research and Chief
Minneapolis, MN 55440 International Economist
Janis E. Miller Vice President-Mutual None
IDS Tower 10 Funds Products and
Minneapolis, MN 55440 Marketing
<PAGE>
PAGE 35
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
James A. Mitchell Senior Vice President- None
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
Pamela J. Moret Vice President- None
IDS Tower 10 Corporate Communications
Minneapolis, MN 55440
Robert J. Neis Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440 Operations
Vernon F. Palen Region Vice President- None
Suite D-222 Rocky Mountain Region
7100 E. Lincoln Drive
Scottsdale, AZ 85253
James R. Palmer Vice President- None
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
Judith A. Pennington Vice President- None
IDS Tower 10 Field Technology
Minneapolis, MN 55440
George M. Perry Vice President- None
IDS Tower 10 Corporate Strategy
Minneapolis, MN 55440 and Development
Susan B. Plimpton Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Marketing
Ronald W. Powell Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James M. Punch Vice President- None
IDS Tower 10 TransAction Services
Minneapolis, MN 55440
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
Roger B. Rogos Region Vice President- None
Suite 15, Parkside Place Great Lakes
945 Boardman-Canfield Rd Region
Youngstown, Ohio 44512
ReBecca K. Roloff Vice President-1994 None
IDS Tower 10 Program Director
Minneapolis, MN 55440
<PAGE>
PAGE 36
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Stephen W. Roszell Vice President- None
IDS Tower 10 Advisory Institutional
Minneapolis, MN 55440 Marketing
Robert A. Rudell Vice President- None
IDS Tower 10 IDS Institutional
Minneapolis, MN 55440 Retirement Services
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
Erven A. Samsel Senior Vice President- None
45 Braintree Hill Park Field Management
Braintree, MA 02184
R. Reed Saunders Director, Senior None
IDS Tower 10 Vice President and
Minneapolis, MN 55440 Chief Marketing Officer
Stuart A. Sedlacek Vice President- None
IDS Tower 10 Structured Products
Minneapolis, MN 55440 Group
Donald K. Shanks Vice President- None
IDS Tower 10 Property Casualty
Minneapolis, MN 55440
F. Dale Simmons Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440 Insurance Investments
Judy P. Skoglund Vice President- None
IDS Tower 10 Human Resources and
Minneapolis, MN 55440 Organization Development
Julian W. Sloter Vice President- None
9040 Roswell Rd. Southeast Region
River Ridge-Suite 600
Atlanta, GA 30350
Ben C. Smith Vice President- None
IDS Tower 10 Workplace Marketing
Minneapolis, MN 55440
William A. Smith Vice President- None
IDS Tower 10 Finance and CFO/UK
Minneapolis, MN 55440
James B. Solberg Vice President- None
IDS Tower 10 Advanced Financial
Minneapolis, MN 55440 Planning
<PAGE>
PAGE 37
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Bridget Sperl Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440 Management Services
Lois Stilwell Vice President- None
IDS Tower 10 Sales Training and
Minneapolis, MN 55440 Communications
William A. Stoltzmann Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James J. Strauss Vice President- None
IDS Tower 10 Corporate Planning
Minneapolis, MN 55440 and Analysis
Jeffrey J. Stremcha Vice President-Information None
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440
Neil Taylor Vice President- None
IDS Tower 10 IDS 1994
Minneapolis, MN 55440
John R. Thomas Senior Vice President- Director/
IDS Tower 10 Mutual Funds Operations Trustee
Minneapolis, MN 55440
Melinda S. Urion Vice President- None
IDS Tower 10 Insurance Controller
Minneapolis, MN 55440
Charles R. Utoft Vice President- None
IDS Tower 10 Equity and Fixed
Minneapolis, MN 55440 Income Trading
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Norman Weaver Jr. Senior Vice President- None
Suite 215 Field Management
1501 Westcliff Drive
Newport Beach, CA 92660
Michael L. Weiner Vice President- None
IDS Tower 10 Corporate Tax
Minneapolis, MN 55440 Operations
Lawrence J. Welte Vice President- None
IDS Tower 10 Investment Administration
Minneapolis, MN 55440
<PAGE>
PAGE 38
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
William N. Westhoff Senior Vice President- None
IDS Tower 10 Fixed Income Management
Minneapolis, MN 55440
Edwin Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Michael Woodward Senior Vice President- None
Suite 815 Field Management
8585 Broadway
Merrillville, IN 46410
Item 29(c). Not applicable.
Item 30. Location of Accounts and Records
IDS Financial Corporation
IDS Tower 10
Minneapolis, MN 55440
Item 31. Management Services
Not Applicable.
Item 32. Undertakings
(a) Not Applicable.
(b) Not Applicable.
(c) The Registrant undertakes to furnish each person
to whom a prospectus is delivered with a copy of
the Registrant's latest annual report to
shareholders, upon request and without charge.
<PAGE>
PAGE 73
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, IDS Market
Advantage Series, Inc., certifies that it meets all of the
requirements for the effectiveness of this Amendment to its
Registration Statement pursuant to Rule 485(b) under the Securities
Act of 1933, and has duly caused this Amendment to its Registration
Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Minneapolis and State of Minnesota
on the 29th day of March, 1994.
IDS MARKET ADVANTAGE SERIES, INC.
by /s/ William R. Pearce**
William R. Pearce, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following
persons in the capacities indicated on the 29th day of March, 1994.
Signatures Capacity
/s/ William R. Pearce* President, Principal
William R. Pearce Executive Officer and
Director
/s/ Leslie L. Ogg** Treasurer, Principal
Leslie L. Ogg Financial Officer and
Principal Accounting
Officer
Director
Lynne V. Cheney
/s/ William H. Dudley* Director
William H. Dudley
/s/ Robert F. Froehlke* Director
Robert F. Froehlke
/s/ David R. Hubers* Director
David R. Hubers
/s/ Anne P. Jones* Director
Anne P. Jones
/s/ Donald M. Kendall* Director
Donald M. Kendall
/s/ Melvin R. Laird* Director
Melvin R. Laird
<PAGE>
PAGE 74
/s/ Lewis W. Lehr* Director
Lewis W. Lehr
/s/ Edson W. Spencer* Director
Edson W. Spencer
/s/ John R. Thomas* Director
John R. Thomas
/s/ Wheelock Whitney* Director
Wheelock Whitney
*Signed pursuant to Directors' Power of Attorney dated Oct. 14,
1993, filed as Exhibit 17(a) to Registrant's Post-Effective
Amendment No. 8 to Registration Statement No. 33-30770, is
incorporated herein by reference by:
______________________________
Leslie L. Ogg
**Signed pursuant to Officers' Power of Attorney dated June 1,
1993, filed as Exhibit 17(b), to Registrant's Post-Effective
Amendment No. 8 to Registration Statement No. 33-30770, is
incorporated herein by reference by:
______________________________
Leslie L. Ogg
<PAGE>
PAGE 75
CONTENTS OF THIS
POST-EFFECTIVE AMENDMENT NO. 9
TO REGISTRATION STATEMENT NO. 33-30770
This post-effective amendment comprises the following papers and
documents:
The facing sheet.
Part A.
Cross reference sheet.
The prospectus.
Part B.
Statement of Additional Information.
Financial Statements.
Part C.
Other Information.
The Signatures.
EXHIBIT INDEX
B(11) Independent Auditors' Consent
<PAGE>
PAGE 1
INDEPENDENT AUDITORS' CONSENT
___________________________________________________________________
The Board of Directors and Shareholders
IDS Market Advantage Series, Inc.:
We consent to the use of our report incorporated herein by
reference and to the references to our Firm under the headings
"Condensed Financial Information" in Part A and "INDEPENDENT
AUDITORS" in Part B of the Registration Statement.
KPMG Peat Marwick
Minneapolis, Minnesota
March 29, 1994
