-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, GURhdoIkV++HWk4TUIw4s9DAeJYSs+F/p5v2CkKMqDPYBr7DLVQsICunAxTJa8rI UqTsmru8WverI0pjJBUn3w== 0000820027-95-000171.txt : 19950615 0000820027-95-000171.hdr.sgml : 19950615 ACCESSION NUMBER: 0000820027-95-000171 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950131 FILED AS OF DATE: 19950320 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS MONEY MARKET SERIES INC CENTRAL INDEX KEY: 0000049698 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 411254759 STATE OF INCORPORATION: MN FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02591 FILM NUMBER: 95521946 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET STREET 2: T33/52 CITY: MINNEAPLOS STATE: MN ZIP: 55440 BUSINESS PHONE: 6123722772 MAIL ADDRESS: STREET 1: 80 SOUTH 8TH STREET STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 FORMER COMPANY: FORMER CONFORMED NAME: IDS CASH MANAGEMENT FUND INC DATE OF NAME CHANGE: 19920703 N-30D 1 CASH SEMI FILING 01/95 IDS Cash Management Fund 1995 semiannual report The goal of IDS Cash Management Fund, a part of IDS Money Market Series, Inc., is to provide maximum current income consistent with liquidity and stability of principal. The fund invests in money market securities. Distributed by American Express Financial Advisors Inc. A cache for cash Keeping a portion of your investment portfolio in a cash reserve is a cornerstone of a sound financial strategy. And a money market mutual fund that stresses stability of your investment principal and easy access when you need it is an excellent way to meet that need. That's what Cash Management Fund is all about. For you, that translates into peace of mind, plus a competitive return on your money. Contents From the president 3 From the portfolio manager 3 Financial statements 5 Notes to financial statements 8 Investments in securities 12 Directors and officers 16 IDS mutual funds 17 To our shareholders William R. Pearce President of the fund Terry Fettig Portfolio manager From the president All of the funds in the IDS MUTUAL FUND GROUP held shareholder meetings on Nov. 9, 1994. The meetings, which were well-attended, approved all of the proposals advanced by management. Among the proposals were: The election of directors and the selection of KPMG Peat Marwick LLP as independent auditors for each of the funds in the group. A new investment management agreement that will become effective for each fund when it begins offering multiple classes of shares, now planned to occur in March 1995. A change in investment policy that will permit the fund to adopt a master/feeder structure if and when the board of each fund determines that it is in the best interest of shareholders. As a result of the approved proposals, this fund's operating expenses were reduced, which should enhance the return to shareholders. No other business was presented at the meeting, which was concluded by a report to shareholders from the American Express Financial Corporation Investment Department. Thanks to all of you for your effort in reviewing the proxy material and voting your proxies. William R. Pearce From the portfolio manager Ongoing economic growth fostered further increases in short-term interest rates during the first half of Cash Management Fund's fiscal year (August 1994 through January 1995). Consistent with that trend, the fund's yield also increased. For the seven-day period ended Jan. 31, 1995, the fund's compound annualized yield was 5.43%, and the simple annualized yield was 5.29%. In keeping with its objective, the fund maintained a stable $1 per share price throughout the six-month period.* A long run The extended rise in short-term interest rates actually began in February 1994, when the Federal Reserve Board started raising rates with the intent of slowing down the economy and, therefore, preventing a rapid increase in the rate of inflation. (The Fed adjusts short-term rates based on the condition of the economy and the inflation outlook. When the economy appears weak and inflation is low, the Fed usually lowers rates to stimulate the economy. When the economy appears to be expanding rapidly, the Fed usually pushes up short-term interest rates to try to moderate economic growth and keep inflation in check.) During the 12 months from February 1994 through January 1995, the Fed raised short- term rates seven times. The Fed's efforts have led to higher rates on the securities in which the fund invests and, ultimately, to a higher fund yield. Because this fund's top priority is to provide a stable cash investment for shareholders, we maintained our conservative portfolio-management approach. This means an exclusive focus on high-grade securities and only subtle shifts in portfolio structure. Trend expected to continue As we enter the second half of the fiscal year, it appears that the Fed will continue its inflation-fighting policy for at least the near term. If that proves true, we expect short-term rates will continue to rise, boosting the fund's yield. Given that forecast, we plan to stick with our recent approach of keeping the portfolio's average maturity level (the length of time before securities' principal payments are due) relatively short, probably not more than 40 days. As has been the case for some months, this will allow the fund to quickly take advantage of higher-yielding securities should interest rates continue to increase. However, that will not change our fundamental focus on providing a stable net asset value for shareholders who employ this fund as a ready cash reserve. Terry Fettig *Although the fund seeks to maintain a stable $1 share price, there is no assurance that it will be able to do so. An investment in the fund is neither insured nor guaranteed by the U.S. government. 6-month performance (All figures per share) Net asset value (NAV) Jan. 31, 1995 $1.00 July 31, 1994 $1.00 Increase $ -- Distributions Aug. 1, 1994 - Jan. 31, 1995 From income $0.02 From capital gains $ -- Total distributions $0.02 Total return +2.2% PAGE
Financial statements Statement of assets and liabilities IDS Cash Management Fund Jan. 31, 1995 _____________________________________________________________________________________________________________ Assets _____________________________________________________________________________________________________________ (Unaudited) Investments in securities, at value (Note 1) (identified cost $1,537,164,687) $1,537,164,687 Accrued interest receivable 1,116,258 _____________________________________________________________________________________________________________ Total assets 1,538,280,945 _____________________________________________________________________________________________________________ Liabilities _____________________________________________________________________________________________________________ Disbursements in excess of cash on demand deposit 18,404,926 Dividends payable to shareholders 1,315,952 Accrued investment management and services fee 433,301 Accrued distribution fee 103,808 Accrued transfer agency fee 342,049 Other accrued expenses 251,626 _____________________________________________________________________________________________________________ Total liabilities 20,851,662 _____________________________________________________________________________________________________________ Net assets applicable to outstanding capital stock $1,517,429,283 _____________________________________________________________________________________________________________ Represented by _____________________________________________________________________________________________________________ Capital stock -- authorized 10,000,000,000 shares of $.01 par value; outstanding 1,517,508,259 shares $ 15,175,083 Additional paid-in capital 1,502,284,783 Undistributed net investment income 654 Accumulated net realized loss (31,237) _____________________________________________________________________________________________________________ Total -- representing net assets applicable to outstanding capital stock $1,517,429,283 _____________________________________________________________________________________________________________ Net asset value per share of outstanding capital stock $ 1.00 _____________________________________________________________________________________________________________ See accompanying notes to financial statements. PAGE Statement of operations IDS Cash Management Fund Six months ended Jan. 31, 1995 _____________________________________________________________________________________________________________ Investment income _____________________________________________________________________________________________________________ (Unaudited) Income: Interest $34,642,054 _____________________________________________________________________________________________________________ Expenses (Note 2): Investment management and services fee 2,206,034 Distribution fee 577,634 Transfer agency fee 1,905,060 Compensation of directors 4,426 Compensation of officers 393 Custodian fees 56,043 Postage 275,687 Registration fees 88,054 Reports to shareholders 74,257 Audit fees 14,000 Administrative 2,746 Other 11,659 _____________________________________________________________________________________________________________ Total expenses 5,215,993 _____________________________________________________________________________________________________________ Investment income -- net 29,426,061 _____________________________________________________________________________________________________________ Realized loss -- net _____________________________________________________________________________________________________________ Net realized loss (Note 3) (308) _____________________________________________________________________________________________________________ Net increase in net assets resulting from operations $29,425,753 _____________________________________________________________________________________________________________ See accompanying notes to financial statements. /TABLE PAGE
Financial statements Statements of changes in net assets IDS Cash Management Fund _____________________________________________________________________________________________________________ Operations and distributions Jan. 31, 1995 July 31, 1994 _____________________________________________________________________________________________________________ Six months ended Year ended (Unaudited) _____________________________________________________________________________________________________________ Investment income -- net $ 29,426,061 $ 27,818,919 Net realized gain (loss) (308) 6,546 _____________________________________________________________________________________________________________ Net increase in net assets resulting from operations 29,425,753 27,825,465 _____________________________________________________________________________________________________________ Distributions to shareholders from: Net investment income (29,425,617) (27,818,831) _____________________________________________________________________________________________________________ Capital share transactions at constant $1 net asset value _____________________________________________________________________________________________________________ Proceeds from sales 2,372,189,279 3,450,597,013 Net asset value of shares issued in reinvestment of distributions 27,493,469 26,872,301 Payments for redemptions of shares (2,035,854,380) (3,376,885,865) _____________________________________________________________________________________________________________ Increase in net assets from capital share transactions 363,828,368 100,583,449 _____________________________________________________________________________________________________________ Total increase in net assets 363,828,504 100,590,083 Net assets at beginning of period 1,153,600,779 1,053,010,696 _____________________________________________________________________________________________________________ Net assets at end of period (including undistributed net investment income of $654 and $210) $1,517,429,283 $1,153,600,779 _____________________________________________________________________________________________________________ See accompanying notes to financial statements. /TABLE PAGE Notes to Financial Statements IDS Cash Management Fund (Unaudited as to Jan. 31, 1995) ___________________________________________________________________________ 1. Summary of significant accounting policies The fund is a series of IDS Money Market Series, Inc. and is registered under the Investment Company Act of 1940 (the 1940 Act), as amended, as a diversified, open-end management investment company. Significant accounting policies followed by the fund are summarized below: Valuation of securities Pursuant to Rule 2a-7 of the 1940 Act, all securities are valued daily at amortized cost, which approximates market value, in order to maintain a constant net asset value of $1 per share. 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. Dividends to shareholders Dividends from net investment income, declared daily and payable monthly, are reinvested in additional shares of the fund at net asset value or payable in cash. Other Security transactions are accounted for on the date securities are purchased or sold. Interest income, including amortization of premium and discount, is accrued daily. ___________________________________________________________________________ 2. Expenses Under terms of an agreement dated Nov. 14, 1991, the fund pays American Express Financial Corporation a fee for managing its investments, recordkeeping and other specified services. The fee is a percentage of the fund's average daily net assets consisting of an annual asset charge reducing percentages from 0.34% to 0.26% annually. PAGE The fund also pays American Express Financial Corporation a distribution fee at an annual rate of $6 per shareholder account and a transfer agency fee at an annual rate of $20 per shareholder account. The transfer agency fee is reduced by earnings on monies pending shareholder redemptions. American Express Financial Corporation will assume and pay any expenses (except taxes and brokerage commissions) that exceed the most restrictive applicable state expense limitation. 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 $5,164 for the six months ended Jan. 31, 1995. ___________________________________________________________________________ 3. Securities transactions Cost of purchases and proceeds from sales of securities aggregated $5,079,834,750 and $4,696,750,755, respectively, for the six months ended Jan. 31, 1995. Realized gains and losses are determined on an identified cost basis. PAGE
4. Financial highlights The table below shows certain important financial information for evaluating the fund's results. Fiscal period ended July 31, Per share income and capital changes* 1995** 1994 1993 1992 1991 1990 Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 beginning of period Income from investment operations: Net investment income .02 .03 .02 .04 .07 .08 Less distributions: Dividends from net (.02) (.03) (.02) (.04) (.07) (.08) investment income Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 end of period Ratios/supplemental data 1995** 1994 1993 1992 1991 1990 Net assets, end of period $1,517 $1,154 $1,053 $1,230 $1,655 $1,617 (in millions) Ratio of expenses to .79%*** .94%+ .94%+ .91% .77% .74% average daily net assets Ratio of net income to 4.47%*** 2.61% 2.36% 3.84% 6.55% 7.81% average daily net assets Total return 2.2%++ 2.6% 2.4% 3.8% 6.7% 7.9% *For a share outstanding throughout the period. Rounded to the nearest cent. **Six months ended Jan. 31, 1995 (Unaudited). ***Adjusted to an annual basis. +During the fiscal years ended July 31, 1993 and July 31, 1994, American Express Financial Corporation voluntarily reimbursed the fund for a portion of its expenses. Had American Express Financial Corporation not done so, the ratio of expenses to average daily net assets would have been 0.97%. ++For the fiscal period ended Jan. 31, 1995, the annualized total return is 4.4%.
PAGE
Investments in securities IDS Cash Management Fund (Percentages represent value of Jan. 31, 1995 (Unaudited) investments compared to net assets) _____________________________________________________________________________________________________________________________ Issuer Annualized Amount Value(a) yield on payable at date of maturity purchase _____________________________________________________________________________________________________________________________ U.S. government agency (1.5%) Federal Natl Mtge Assn 02-08-95 5.64% $12,300,000 $ 12,286,535 06-01-95 5.94 10,000,000 (c) 10,000,000 _____________________________________________________________________________________________________________________________ Total U.S. government agency (Cost: $22,286,535) 22,286,535 _____________________________________________________________________________________________________________________________ Certificates of deposit (5.0%) Domestic ABN AMRO Yankee 04-28-95 6.22 15,000,000 14,997,205 Harris Trust 02-10-95 5.76 15,000,000 14,999,776 Natl Detroit 02-22-95 5.84 5,300,000 5,300,031 Societe Generale Yankee 02-03-95 6.15 20,000,000 20,000,000 03-27-95 6.10 20,000,000 20,000,000 _____________________________________________________________________________________________________________________________ Total certificates of deposit (Cost: $75,297,012) 75,297,012 _____________________________________________________________________________________________________________________________ Commercial paper (69.5%) Automotive & related (0.9%) Ford Motor Credit 02-03-95 6.10 13,200,000 13,195,563 _____________________________________________________________________________________________________________________________ Banks and savings & loans (11.2%) BBV Finance Delaware 02-24-95 5.91 20,000,000 19,924,867 02-27-95 5.93 10,000,000 9,957,389 02-27-95 5.96 5,600,000 5,576,037 04-04-95 6.33 20,100,000 19,884,338 04-04-95 6.35 21,200,000 20,971,805 Commerzbank US Finance 02-06-95 6.14 18,000,000 17,984,825 02-21-95 6.08 12,000,000 11,960,000 02-24-95 5.93 15,100,000 15,043,081 Kredietbank North Amer Finance 02-28-95 5.97 5,600,000 5,575,304 03-31-95 6.22 6,000,000 5,940,743 Lilly (Eli) 02-06-95 5.95 7,474,000 7,467,875 04-11-95 6.25 10,000,000 (b) 9,882,125 See accompanying notes to investments in securities. PAGE Natl Bank Detroit 02-28-95 5.95 7,000,000 6,999,452 Natl Bank Detroit Canada 02-27-95 5.87 4,600,000 4,580,598 Societe Generale North Amer 04-10-95 6.19 8,100,000 8,006,670 _____________ Total 169,755,109 _____________________________________________________________________________________________________________________________ Computers & office equipment (0.6%) Pitney Bowes Credit 02-06-95 5.92 9,900,000 9,891,929 _____________________________________________________________________________________________________________________________ Electronics (0.4%) Siemens 02-09-95 6.10 6,600,000 6,591,127 _____________________________________________________________________________________________________________________________ Energy (3.9%) BOC Group 02-07-95 5.83 16,900,000 16,883,579 02-13-95 5.98 6,900,000 6,886,269 Chevron Transport 02-08-95 6.15 15,000,000 (b) 14,982,267 02-13-95 5.71 20,000,000 (b) 19,962,133 _____________ Total 58,714,248 _____________________________________________________________________________________________________________________________ Financial services (31.5%) Amer General 02-17-95 5.89 7,100,000 7,081,540 Amer General Investment 03-21-95 6.01 8,600,000 (b) 8,531,773 03-22-95 6.06 14,000,000 (b) 13,885,667 Associates North Amer 03-13-95 6.03 8,000,000 7,946,844 Avco Financial 03-27-95 6.08 10,000,000 9,909,700 Beneficial 02-07-95 6.08 6,100,000 6,093,819 02-22-95 5.85 10,000,000 9,966,050 03-02-95 6.06 6,400,000 6,368,912 01-23-96 6.16 10,000,000 (c) 10,000,000 Cargill Financial Markets 02-16-95 5.82 10,000,000 (b) 9,975,833 03-06-95 6.27 4,900,000 (b) 4,873,050 CIT Group Holdings 02-03-95 5.87 7,000,000 6,997,729 02-17-95 5.75 17,000,000 16,956,782 03-06-95 6.27 7,000,000 6,960,409 Commercial Credit 02-13-95 5.68 10,300,000 10,280,602 02-14-95 5.68 15,000,000 14,969,396 02-17-95 5.75 11,000,000 10,972,036 PAGE Corporate Asset Funding 02-03-95 5.90 14,900,000 14,895,141 02-09-95 6.13 17,000,000 16,977,069 Dresdner U.S. Finance 02-27-95 5.90 23,100,000 23,002,069 02-28-95 5.90 9,300,000 9,259,057 Eiger Capital 02-21-95 5.85 24,400,000 (b) 24,321,107 Exxon Asset Management 02-06-65 5.56 7,700,000 7,694,065 Fleet Funding 04-03-95 6.06 9,000,000 (b) 8,908,805 General Electric Capital 03-14-95 5.91 8,000,000 7,946,609 04-17-95 6.11 10,000,000 9,875,833 Goldman Sachs Group LP 02-01-95 6.01 10,500,000 10,500,000 02-02-95 6.01 12,700,000 12,697,901 Household Finance 02-10-95 5.76 14,800,000 14,778,799 Merrill Lynch 02-10-95 6.16 9,500,000 9,485,512 02-21-95 5.86 5,000,000 4,983,806 03-07-95 5.97 9,800,000 9,745,207 03-14-95 5.96 10,000,000 9,932,806 04-12-95 6.19 15,000,000 14,822,083 04-13-95 6.19 15,000,000 14,819,542 04-28-95 6.019 10,000,000 (c) 10,000,000 Mobil Australia Finance Delaware 02-07-95 5.75 17,800,000 (b) 17,783,031 02-14-95 5.85 13,784,000 (b) 13,755,031 Morgan Guaranty 05-10-95 6.00 10,000,000 (c) 9,998,389 Morgan Stanley Group 05-17-95 6.25 5,000,000 (c) 5,000,662 Paccar Financial 03-10-95 6.18 6,600,000 6,558,622 SBT Funding 02-02-95 5.93 6,553,000 (b) 6,551,932 Toyota Motor Credit 03-13-95 6.02 5,000,000 4,966,889 Unilever Capital 03-27-95 6.15 9,100,000 9,017,144 USAA Capital 02-08-95 6.19 3,300,000 3,296,067 04-03-95 6.29 4,900,000 4,848,523 ______________ Total 478,191,843 _____________________________________________________________________________________________________________________________ PAGE _____________________________________________________________________________________________________________________________ Food (1.8%) Cargill 03-03-95 6.26 7,900,000 7,859,381 CPC Intl 02-21-95 5.91 5,000,000 (b) 4,983,833 PepsiCo 03-01-95 5.98 9,300,000 9,256,962 Sara Lee 03-02-95 6.11 6,000,000 5,970,903 ______________ Total 28,071,079 _____________________________________________________________________________________________________________________________ Health care (4.0%) Amgen 02-07-95 6.16 24,900,000 24,874,685 03-17-95 6.06 9,200,000 9,132,533 Sandoz 02-01-95 6.04 12,000,000 12,000,000 02-08-95 5.78 7,000,000 6,992,174 02-28-95 5.90 7,900,000 7,865,220 ______________ Total 60,864,612 _____________________________________________________________________________________________________________________________ Industrial transportation (1.2%) Consolidated Rail 02-14-95 5.85 11,900,000 (b) 11,875,205 Norfolk Southern 02-13-95 5.84 7,000,000 (b) 6,986,560 ______________ Total 18,861,765 _____________________________________________________________________________________________________________________________ Insurance (3.2%) Aon 03-01-95 5.90 8,900,000 8,859,367 Lincoln Natl 02-13-95 5.68 5,800,000 (b) 5,789,077 02-16-95 5.76 10,000,000 (b) 9,976,125 02-23-95 5.86 8,500,000 (b) 8,469,716 SAFECO Credit 02-02-95 5.54 11,000,000 10,998,335 St. Paul Companies 02-03-95 5.84 4,400,000 (b) 4,398,580 ______________ Total 48,491,200 _____________________________________________________________________________________________________________________________ Media (1.9%) Dun & Bradstreet 03-07-95 6.26 10,000,000 9,941,728 Reed Elsevier 03-20-95 6.18 19,000,000 (b) 18,848,686 ______________ Total 28,790,414 _____________________________________________________________________________________________________________________________ Utilities - electric (2.2%) Bayshore Fuel 02-17-95 5.88 16,907,000 16,863,042 PAGE Gateway Fuel 02-07-95 6.14 8,245,000 8,236,645 04-03-95 6.05 8,027,000 7,945,800 ______________ Total 33,045,487 ______________________________________________________________________________________________________________________________ Utilities - gas (2.6%) Southern California Gas 02-01-95 5.77 7,148,000 (b) 7,148,000 02-02-95 5.77 6,647,000 (b) 6,645,938 02-09-95 5.75 15,071,000 (b) 15,051,843 02-16-95 5.88 10,149,000 10,124,473 ______________ Total 38,970,254 _____________________________________________________________________________________________________________________________ Utilities - telephone (4.1%) AT&T 02-07-95 5.87 10,000,000 9,990,333 Bell South Capital Funding 04-05-95 6.33 6,900,000 6,824,773 Southwestern Bell Capital 02-21-95 6.15 5,800,000 (b) 5,780,409 03-10-95 6.00 15,000,000 (b) 14,908,425 US WEST Communications 02-08-95 6.10 12,000,000 11,985,883 04-12-95 6.09 13,000,000 12,848,333 ______________ Total 62,338,156 _____________________________________________________________________________________________________________________________ Total commercial paper (Cost: $1,055,772,786) 1,055,772,786 _____________________________________________________________________________________________________________________________ Letters of credit (25.3%) ABN Amro- Sci Systems 02-22-95 5.85 7,200,000 7,175,556 ABN Amro- U.S. Prime Properties 02-13-95 5.72 8,500,000 8,483,850 02-24-95 5.93 9,000,000 8,966,075 Bank of Amer- AES Barbers Point 02-17-95 5.86 8,300,000 8,278,494 03-23-95 6.07 15,000,000 14,874,999 Bank of Amer- Hyundai Motor Finance 02-10-95 5.70 18,000,000 17,974,485 02-10-95 5.78 8,300,000 8,288,069 Banque Paribas- Cogentrix of Richmond 02-10-95 5.78 10,000,000 9,985,625 03-10-95 5.92 10,500,000 10,436,653 03-10-95 5.93 7,807,000 7,759,820 04-04-95 6.23 15,000,000 14,841,125 Banque Parabas- James River Cogeneration 02-15-95 5.71 13,020,000 12,991,240 PAGE Banque Paribas- Southeast Paper Manufacturing 02-07-95 5.90 9,000,000 8,991,150 03-07-95 6.11 9,300,000 9,246,861 Barclays Bank- Banco Real 04-14-95 6.24 13,000,000 12,840,100 04-20-95 6.25 20,000,000 19,733,500 Barclays Bank- Centerior Fuel 02-17-95 5.92 10,007,000 9,980,759 Barclays Bank- Corporacion Andina De Forento 02-17-95 6.16 8,400,000 8,377,226 04-25-95 6.32 9,000,000 8,870,935 Barclays Bank- FPL Fuels 02-21-95 6.15 6,500,000 6,477,972 Canadian Imperial Bank- Commed Fuel 02-02-95 6.19 5,074,000 5,073,137 02-06-95 6.17 13,240,000 13,228,783 03-06-95 6.17 11,821,000 11,755,443 03-20-95 6.04 12,221,000 12,125,588 Credit Agricole- Louis Dreyfus Series B 02-24-95 5.93 12,000,000 11,954,767 Credit Suisse- MP Funding 02-27-95 6.03 10,528,000 10,482,378 Credit Suisse- Pemex Capital 02-09-95 5.83 10,000,000 9,987,111 03-02-95 6.08 15,000,000 14,926,896 03-23-95 6.09 9,000,000 8,924,625 04-20-95 6.25 15,000,000 14,800,125 Credit Suisse- Sunkyong Amer 03-02-95 6.27 7,000,000 6,965,152 First Chicago- Commed Fuel 02-03-95 6.19 7,007,000 7,004,614 03-03-95 6.06 11,815,000 11,755,630 Toronto Dominion Bank- Franciscan Services 02-16-95 5.70 10,100,000 10,076,139 Union Bank Switzerland- MLTC Funding 03-13-95 6.11 20,310,000 20,173,472 _____________________________________________________________________________________________________________________________ Total letters of credit (Cost: $383,808,354) 383,808,354 _____________________________________________________________________________________________________________________________ Total investments in securities (Cost: $1,537,164,687)(d) $1,537,164,687 _____________________________________________________________________________________________________________________________ PAGE _____________________________________________________________________________________________________________________________ Notes to investments in securities _____________________________________________________________________________________________________________________________ (a) Securities are valued by procedures described in Note 1 to the financial statements. (b) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors". This security has been determined to be liquid under guidelines established by the board of directors. (c) Interest rate varies to reflect current market conditions; rate shown is the effective rate on Jan. 31, 1995. (d) Also represents the approximate cost of securities for federal income tax purposes at Jan. 31, 1995. /TABLE PAGE Directors and officers 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. Heinz F. Hutter Former president and chief operating officer, Cargill, Inc. Anne P. Jones Attorney and telecommunications consultant. Donald M. Kendall Former chairman and chief executive officer, PepsiCo, Inc. 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. C. Angus Wurtele Chairman of the board and chief executive officer, The Valspar Corporation. _____________________________________________________________________ Interested directors who are officers and/or employees of American Express Financial Corporation. William H. Dudley Executive vice president, American Express Financial Corporation. David R. Hubers President and chief executive officer, American Express Financial Corporation. John R. Thomas Senior vice president, American Express Financial Corporation. _____________________________________________________________________ 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. PAGE IDS mutual funds Cash equivalent investments These money market funds have three main goals: conservation of capital, constant liquidity and the highest possible current income consistent with these objectives. Very limited risk. IDS Cash Management Fund Invests in such money market securities as high quality commercial paper, bankers' acceptances, certificates of deposit (CDs) and other bank securities. (icon of) piggy bank IDS Tax-Free Money Fund Invests primarily in short-term bonds and notes issued by state and local governments to seek high current income exempt from federal income taxes. (icon of) shield with piggy bank enclosed Income investments The funds in this group invest their assets primarily in corporate bonds or government securities to seek interest income. Secondary objective is capital growth. Risk varies by bond quality. IDS Global Bond Fund Invests primarily in debt securities of U.S. and foreign issuers to seek high total return through income and growth of capital. (icon of) globe IDS Extra Income Fund Invests mainly in long-term, high-yielding corporate fixed-income securities in the lower rated, higher risk bond categories to seek high current income. Secondary objective is capital growth. (icon of) cornucopia PAGE IDS Bond Fund Invests mainly in corporate bonds, at least 50% in the higher rated, lower risk bond categories, or the equivalent, and in government bonds. (icon of) greek column IDS Selective Fund Invests in high-quality corporate bonds and other highly rated debt instruments including government securities and short-term investments. Seeks current income and preservation of capital. (icon of) skyline IDS Federal Income Fund Invests primarily in securities issued or guaranteed as to the timely payment of principal and interest by the U.S. government, its agencies and instrumentalities. Seeks a high level of current income and safety of principal consistent with its type of investments. (icon of) federal building Tax-exempt income investments These funds provide tax-free income by investing in municipal bonds. The income is generally free from federal income tax. Risk varies by bond quality. IDS High Yield Tax-Exempt Fund Invests primarily in medium- and lower-quality municipal bonds and notes. Lower-quality securities generally involve greater risk of principal and income. (icon of) shield with basket of apples enclosed PAGE IDS State Tax-Exempt Funds (CA, MA, MI, MN, NY, OH) Invests primarily in high- and medium-grade municipal securities to provide income to residents of each respective state that is exempt from federal, state and local income taxes. (New York is the only state that is exempt at the local level.) (icon of) shield with U.S. enclosed IDS Tax-Exempt Bond Fund Invests mainly in bonds and notes of state or local government units, with at least 75% in the four highest rated, lowest risk bond categories. (icon of) shield with Greek column IDS Insured Tax-Exempt Fund Invests primarily in municipal securities that are insured as to the timely payment of principal and interest. The insurance feature minimizes credit risk of the fund but does not guarantee the market value of the fund's shares. (icon of) shield with eagle head Growth and income investments These funds focus on securities of medium to large, well-established companies that offer long-term growth of capital and reasonable income from dividends and interest. Moderate risk. IDS International Fund Invests primarily in common stocks of foreign companies that offer potential for superior growth. The fund may invest up to 20% of its assets in the U.S. market. (icon of) three flags IDS Managed Retirement Fund Invests in a combination of common stocks, fixed-income investments and money market securities to seek a maximum total return through a combination of growth of capital and current income. (icon of) bird in a nest PAGE IDS Equity Select Fund Invests primarily in a combination of moderate growth stocks, higher-yielding equities and bonds. Seeks growth of capital and income. (icon of) three apple trees IDS Blue Chip Advantage Fund Invests in selected stocks from a major market index. Securities purchased are those recommended by our research analysts as the best from each industry represented on the index. Offers potential for long-term growth as well as dividend income. (icon of) ribbon IDS Stock Fund Invests in common stocks of companies representing many sectors of the economy. Seeks current income and growth of capital. (icon of) building with columns IDS Equity Value Fund Invests primarily in undervalued common stocks that offer potential for growth of capital and income. (icon of) three growing flowers IDS Utilities Income Fund Invests primarily in the stocks of public utility companies to seek high current income and growth of income and capital with reduced volatility. (icon of) electrical cord IDS Diversified Equity Income Fund Invests primarily in high-yielding common stocks to seek high current income and, secondarily, to benefit from the growth potential offered by stock investments. (icon of) four puzzle pieces IDS Mutual Invests in a balance between common stocks and senior securities (preferred stocks and bonds). Seeks a balance of growth of capital and current income. (icon of) scale of justice PAGE Growth investments Funds in this group seek capital growth, primarily from common stocks. They are high risk mutual funds with a potential for high reward. IDS Discovery Fund Invests in small- and medium-size, growth-oriented companies emphasizing technological innovation and productivity enhancement. Buys and holds larger growth-oriented stocks. (icon of) ship IDS Strategy Aggressive Fund Invests primarily in common stocks of companies that are selected for their potential for above-average growth. Above-average means that their growth potential is better, in the opinion of the portfolio's investment manager, than the Standard & Poor's Corporation (S&P) 500 Stock Index. (icon of) chess piece IDS Growth Fund Invests primarily in companies that have above-average potential for long-term growth as a result of new management, marketing opportunities or technological superiority. (icon of) flower IDS Global Growth Fund Invests in stocks of companies throughout the world that are positioned to meet market needs in a changing world economy. These companies offer above-average potential for long-term growth. (icon of) world IDS New Dimensions Fund Invests primarily in companies with significant growth potential due to superiority in technology, marketing or management. The fund frequently changes its industry mix. (icon of) dimension IDS Progressive Fund Invests primarily in undervalued common stocks. The fund holds stocks for the long term with the goal of capital growth. (icon of) shooting star PAGE Specialty growth investment This fund aggressively seeks capital growth as a hedge against inflation. IDS Precious Metals Fund Invests primarily in the securities of foreign or domestic companies that explore for, mine and process or distribute gold and other precious metals. This is the most aggressive and most speculative IDS mutual fund. (icon of) cart of precious gems For more complete information about any of these funds, including charges and expenses, you can obtain a prospectus by contacting your financial advisor or writing to American Express Shareholder Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it carefully before you invest or send money. PAGE Quick telephone reference American Express Telephone Transaction Service Redemptions and exchanges, dividend payments or reinvestments and automatic payment arrangements National/Minnesota: 800-437-3133 Mpls./St. Paul area: 671-3800 American Express Shareholder Service Fund performance, objectives and account inquiries 612-671-3733 TTY Service For the hearing impaired 800-846-4852 American Express Infoline Automated account information (TouchTone phones only), including current fund prices and performance, account values and recent account transactions National/Minnesota: 800-272-4445 Mpls./St. Paul area: 671-1630 AMERICAN EXPRESS FINANCIAL ADVISORS IDS Cash Management Fund IDS Tower 10 Minneapolis, MN 55440-0010 -----END PRIVACY-ENHANCED MESSAGE-----