-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Kyx4me++RLPHBi0hcQjfDIMQyxlGxqlMRQz5KOnNcCcCzNJMentHUHlpu6HlMriR t/pZbn8KJsgMYX1+YlDKZA== 0000820027-99-000735.txt : 19991018 0000820027-99-000735.hdr.sgml : 19991018 ACCESSION NUMBER: 0000820027-99-000735 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990731 FILED AS OF DATE: 19991006 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: SEC FILE NUMBER: 811-02591 FILM NUMBER: 99723712 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 AXP MONEY MARKET SERIES, INC. AXP(SM) Cash Management Fund 1999 ANNUAL REPORT (PROSPECTUS ENCLOSED) (icon of) clock The goal of AXP Cash Management Fund is to provide shareholders with maximum current income consistent with liquidity and stability of principal. (This annual report includes a prospectus that describes in detail the Fund's objective, investment strategy, risks, sales charges, fees and other matters of interest. Please read the prospectus carefully before you invest or send money.) Distributed by American Express Financial Advisors Inc. AMERICAN EXPRESS Financial Advisors (logo) 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. AXP CASH MANAGEMENT FUND (This annual report is not part of the prospectus.) Table of Contents 1999 ANNUAL REPORT The purpose of this annual report is to tell investors how the Fund performed. From the Chairman 4 From the Portfolio Manager 4 Fund Facts 6 Making the Most of the Fund 7 Independent Auditors' Report 8 Financial Statements 9 Notes to Financial Statements 12 Investments in Securities 16 Federal Income Tax Information 29 1999 PROSPECTUS The prospectus, which is bound into the middle of this annual report, describes the Fund in detail. The Fund 3p Goal 3p Investment Strategy 3p Risks 5p Past Performance 7p Fees and Expenses 8p Management 9p Buying and Selling Shares 9p Valuing Fund Shares 9p Investment Options 10p Purchasing Shares 11p Exchanging/Selling Shares 16p Distributions and Taxes 22p Personalized Shareholder Information 24p About the Company 25p Quick Telephone Reference 27p Financial Highlights 28p (This annual report is not part of the prospectus.) ANNUAL REPORT - 1999 (picture of) Arne H. Carlson Arne H. Carlson Chairman of the board From the Chairman American Express(R) Funds held shareholder meetings in June 1999. Shareholders approved all of the proposals advanced by management. Among the proposals were: o The election of Board members and the selection of KPMG LLP as independent auditors. o Change in the Fund name from "IDS" to "AXP." o A change in the investment management services agreement. o Changes with respect to fundamental investment policies. No other business was presented at the meeting, which was concluded by a report to shareholders from the Investment Department of American Express Financial Corporation. Thanks to all of you for your effort in reviewing the proxy material and voting your proxies. Arne H. Carlson (picture of) Terry Fettig Terry Fettig Portfolio manager From the Portfolio Manager IDS Cash Management Fund's yield declined somewhat during the past fiscal year - -- August 1998 through July 1999 -- reflecting a drop in short-term interest rates. For the 12 months, the Fund's Class A shares generated a total return of 4.71% and the 7-day yield was 4.56%.* In keeping with its objective, the Fund maintained a $1 per share price throughout the period. (An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the Fund.) *The yield quotation more closely reflects the current earnings of the money market fund than the total return quotation. AXP CASH MANAGEMENT FUND (This annual report is not part of the prospectus.) Despite ongoing solid economic growth, inflation remained remarkably low over the period. In recent years, these factors led the Federal Reserve Board to leave short-term interest rates virtually unchanged. But in the fall of 1998, with financial chaos in Asia, Russia and parts of Latin America threatening to severely restrict worldwide lending, the Fed reduced rates three times in less than two months. In late June, the Fed, prompted by a brief spike in inflation, changed course by raising interest rates slightly. (By way of background, the Fed adjusts short-term interest rates based largely 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 economic growth. When the economy is especially strong and inflation threatens to pick up, the Fed usually raises rates to reign in economic growth and thereby keep inflation in check.) ISSUERS FOLLOW SUIT In response to the Fed's rate cuts last fall, issuers of commercial paper -- the core of the Fund's investment portfolio -- also lowered the interest on their securities. Therefore, the yield on the Fund declined as well. To combat that, I added more longer-term securities when they became available, a strategy that increases the portfolio's average maturity and, in turn, the yield. Over the 12 months, the average maturity ranged from about 40 days to about 65 days. At this time (mid-August), I expect the direction of short-term interest rates in the months ahead to hinge on two factors: upcoming economic and inflation data and the impact of the Year 2000 computer bug. When all is said and done, I think the most likely outcome will be modestly higher interest rates. If so, the Fund's yield would rise accordingly as the new fiscal year progresses. Terry Fettig (This annual report is not part of the prospectus.) ANNUAL REPORT - 1999 Fund Facts Class A-- 12-month performance (All figures per share) Net asset value (NAV) July 31, 1999 $1.00 July 31, 1998 $1.00 Increase $ -- Distributions-- Aug. 1, 1998 - July 31, 1999 From income $0.05 From capital gains $ -- Total distributions $0.05 Total return* +4.71%** 7-day yield +4.56%*** Class B-- 12-month performance (All figures per share) Net asset value (NAV) July 31, 1999 $1.00 July 31, 1998 $1.00 Increase $ -- Distributions-- Aug. 1, 1998 - July 31, 1999 From income $0.04 From capital gains $ -- Total distributions $0.04 Total return* +3.94%** 7-day yield +3.81%*** Class Y-- 12-month performance (All figures per share) Net asset value (NAV) July 31, 1999 $1.00 July 31, 1998 $1.00 Increase $ -- Distributions-- Aug. 1, 1998 - July 31, 1999 From income $0.05 From capital gains $ -- Total distributions $0.05 Total return* +4.72%** 7-day yield +4.57%*** *The prospectus discusses the effect of sales charges, if any, on the various classes. **The total return is a hypothetical investment in the Fund with all distributions reinvested. ***The yield quotation more closely reflects the current earnings of the money market fund than the total return quotation. AXP CASH MANAGEMENT FUND (This annual report is not part of the prospectus.) Making the Most of the Fund BUILD OUR ASSETS SYSTMEATICALLY One of the best ways to invest in the Fund is by dollar-cost averaging -- a time-tested strategy that can make market fluctuations work for you. To dollar-cost average, simply invest a fixed amount of money regularly. You'll automatically buy more shares when the Fund's share price is low, fewer shares when it is high. The chart below shows how dollar-cost averaging works. In these three hypothetical scenarios, you will see six months of share price fluctuations. This strategy does not ensure a profit or avoid a loss if the market declines. But, if you can continue to invest regularly through changing market conditions even when the price of your shares fall or the market declines, it can be an effective way to accumulate shares to meet your long-term goals. How dollar-cost averaging works Jan Feb Mar Apr May Jun $15 $16 $18 $20 $10 $10 $12 $14 $ 5 Accumulated shares* Average market Your average price per share cost per share 42.25 $15 $14.20 - ------------------------------------------------------------------------------- Jan Feb Mar Apr May Jun $15 $10 $10 $10 $ 5 $8 $5 $5 $8 Accumulated shares* Average market Your average price per share cost per share 85.0 $7.66 $7.05 - ------------------------------------------------------------------------------- Jan Feb Mar Apr May Jun $15 $10 $10 $8 $6 $7 $ 5 $4 $4 Accumulated shares* Average market Your average price per share cost per share 103.5 $6.50 $5.80 - ------------------------------------------------------------------------------- $100 invested per month. Total invested: $600. *Shares purchased is determined by dividing the amount invested per month by the current share price. THREE WAYS TO BENEFIT FROM A MUTUAL FUND: o your shares increase in value when the Fund's investments do well o you receive capital gains when the gains on investments sold by the Fund exceed losses o you receive income when the Fund's stock dividends, interest and short-term gains exceed its expenses. All three make up your total return. You potentially can increase your investment if, like most investors, you reinvest your dividends and capital gain distributions to buy additional shares of the Fund or another fund. (This annual report is not part of the prospectus.) ANNUAL REPORT - 1999 The financial statements contained in Post-Effective Amendment #50 to Registration Statement No. 2-54516 filed on or about September 29, 1999, are incorporated herein by reference. Federal Income Tax Information The Fund is required by the Internal Revenue Code of 1986 to tell its shareholders about the tax treatment of the dividends it pays during its fiscal year. The dividends listed below are reported to you on Form 1099-DIV, Dividends and Distributions. Shareholders should consult a tax advisor on how to report distributions for state and local tax purposes. AXP Cash Management Fund Fiscal year ended July 31, 1999 Class A Income distributions taxable as dividend income, none qualifying for deduction by corporations. Payable date Per share Aug. 27, 1998 $0.00401 Sept. 25, 1998 0.00403 Oct. 27, 1998 0.00438 Nov. 25, 1998 0.00384 Dec. 22, 1998 0.00361 Jan. 25, 1999 0.00419 Feb. 25, 1999 0.00411 March 25, 1999 0.00335 April 26, 1999 0.00361 May 27, 1999 0.00394 June 24, 1999 0.00337 July 26, 1999 0.00366 Total distributions $0.04610 (This annual report is not part of the prospectus.) ANNUAL REPORT - 1999 Class B Income distributions taxable as dividend income, none qualifying for deduction by corporations. Payable date Per share Aug. 27, 1998 $0.00341 Sept. 25, 1998 0.00344 Oct. 27, 1998 0.00372 Nov. 25, 1998 0.00324 Dec. 22, 1998 0.00305 Jan. 25, 1999 0.00353 Feb. 25, 1999 0.00343 March 25, 1999 0.00278 April 26, 1999 0.00299 May 27, 1999 0.00326 June 24, 1999 0.00280 July 26, 1999 0.00304 Total distributions $0.03869 Class Y Income distributions taxable as dividend income, none qualifying for deduction by corporations. Payable date Per share Aug. 27, 1998 $0.00401 Sept. 25, 1998 0.00403 Oct. 27, 1998 0.00438 Nov. 25, 1998 0.00384 Dec. 22, 1998 0.00361 Jan. 25, 1999 0.00419 Feb. 25, 1999 0.00411 March 25, 1999 0.00340 April 26, 1999 0.00362 May 27, 1999 0.00396 June 24, 1999 0.00338 July 26, 1999 0.00368 Total distributions $0.04621 AXP CASH MANAGEMENT FUND (This annual report is not part of the prospectus.) This page left blank intentionally AXP Cash Management Fund IDS Tower 10 Minneapolis, MN 55440-0010 AMERICAN EXPRESS Financial Advisors (logo) S-6320 N (9/99) STATEMENT OF DIFFERENCES Difference Description 1) The layout is different 1) Some of the layout in the throughout the annual report. annual report to shareholders is in two columns. 2) There are pictures, icons 3) Each picture, icon and and graphs throughout the graph is described in annual report. parentheses. -----END PRIVACY-ENHANCED MESSAGE-----