-----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, BAYymFLi2SwVjQBN3O61f1dVpRL9DbtHkjhH0K1GqaIf3PH+BYoGxYBs5s5eLXol wBBuixqlTeDJ7hL6MuY23Q== 0000820027-94-000416.txt : 19940914 0000820027-94-000416.hdr.sgml : 19940914 ACCESSION NUMBER: 0000820027-94-000416 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19940912 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS NEW DIMENSIONS FUND INC CENTRAL INDEX KEY: 0000049717 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 410940846 STATE OF INCORPORATION: MN FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-28529 FILM NUMBER: 94548683 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6123722772 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS PROGRESSIVE FUND INC CENTRAL INDEX KEY: 0000049722 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 410940847 STATE OF INCORPORATION: MN FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-30059 FILM NUMBER: 94548684 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6123722772 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS SELECTIVE FUND INC CENTRAL INDEX KEY: 0000052407 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 410839316 STATE OF INCORPORATION: MN FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-10700 FILM NUMBER: 94548685 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6123722772 FORMER COMPANY: FORMER CONFORMED NAME: INVESTORS SELECTIVE FUND INC DATE OF NAME CHANGE: 19841002 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS STOCK FUND INC CENTRAL INDEX KEY: 0000052423 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 410839317 STATE OF INCORPORATION: MN FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-11358 FILM NUMBER: 94548686 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6126712727 FORMER COMPANY: FORMER CONFORMED NAME: INVESTORS STOCK FUND INC DATE OF NAME CHANGE: 19831221 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS TAX EXEMPT BOND FUND INC CENTRAL INDEX KEY: 0000202159 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 411284051 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-57328 FILM NUMBER: 94548687 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6126712772 FORMER COMPANY: FORMER CONFORMED NAME: IDS MUNICIPAL BOND FUND INC DATE OF NAME CHANGE: 19770201 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS TAX FREE MONEY FUND INC CENTRAL INDEX KEY: 0000315524 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 421374828 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-66868 FILM NUMBER: 94548688 BUSINESS ADDRESS: STREET 1: IDS TOWER 10 STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6126712772 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS STRATEGY FUND INC CENTRAL INDEX KEY: 0000740146 STANDARD INDUSTRIAL CLASSIFICATION: 0000 STATE OF INCORPORATION: MN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-89288 FILM NUMBER: 94548689 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6123722772 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS PRECIOUS METALS FUND INC CENTRAL INDEX KEY: 0000755222 STANDARD INDUSTRIAL CLASSIFICATION: 0000 STATE OF INCORPORATION: MN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-93745 FILM NUMBER: 94548690 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6123722772 497 1 IDS NEW DIMENSIONS FUND, INC. PAGE 1 Prospectus/Statement of Additional Information Supplement September 12, 1994
Publicly Offered Funds: Prospectus Fund Name (Date) Form # SAI Form # (MM/YY Printed) IDS Blue Chip Advantage Fund (April 1, 1994) S-6025 G S-6025-20 G (3/94) IDS Bond Fund (Oct. 29, 1993) S-6495 G S-6495-20 G (10/93) IDS California Tax-Exempt Fund (Aug. 29, 1994) S-6328 J S-6328-20 J (8/94) IDS Cash Management Fund (Sept. 24, 1993) S-6320 F S-6320-20 M (9/93) IDS Discovery Fund (Sept. 24, 1993) S-6457 K S-6457-20 K (9/93) IDS Diversified Equity Income Fund (Nov. 24, 1993) S-6475 G S-6475-20 F (11/93) IDS Equity Plus Fund (Jan. 28, 1994) S-6426 G S-6426-20 G (1/94) IDS Extra Income Fund (Oct. 29, 1993) S-6370 F S-6370-20 G (9/93) IDS Federal Income Fund (Aug. 29, 1994) S-6042 G S-6042-20 H (8/94) IDS Global Bond Fund (Dec. 30. 1993) S-6309 G S-6309-20 H (12/93) IDS Global Growth Fund (Dec. 30, 1993) S-6334 F S-6334-20 G (12/93) IDS Growth Fund (Sept. 24, 1993) S-6455 K S-6455-20 K (9/93) IDS High Yield Tax-Exempt Fund (Jan. 28, 1994) S-6430 G S-6430-20 K (1/94) IDS Insured Tax-Exempt Fund (Aug. 29, 1994) S-6327 G S-6327-20 K (8/94) IDS International Fund (Dec. 30, 1993) S-6140 G S-6140-20 J (12/93) IDS Managed Retirement Fund (Jan. 28, 1994) S-6141 G S-6141-20 G (1/94) IDS Massachusetts Tax-Exempt Fund (Aug. 29, 1994) S-6328 J S-6328-20 J (8/94) IDS Michigan Tax-Exempt Fund (Aug. 29, 1994) S-6328 J S-6328-20 J (8/94) IDS Minnesota Tax-Exempt Fund (Aug. 29, 1994) S-6328 J S-6328-20 J (8/94) IDS Mutual (Nov. 24, 1993) S-6326 G S-6326-20 H (11/93) IDS New Dimensions Fund,(Nov. 24, 1993) S-6440 G S-6440-20 G (11/93) IDS New York Tax-Exempt Fund (Aug. 29, 1994) S-6328 J S-6328-20 J (8/94) IDS Ohio Tax-Exempt Fund (Aug. 29, 1994) S-6328 J S-6328-20 J (8/94) IDS Planned Investment Account (Sept. 24, 1993) S-6318 G S-6320-20 M (9/93) IDS Precious Metals Fund (May 27, 1994) S-6142 H S-6142-20 L (5/94) IDS Progressive Fund (Nov. 24, 1993) S-6449 G S-6449-20 H (11/93) IDS Selective Fund (Jan. 28, 1994) S-6376 G S-6376-20 G (1/94) IDS Stock Fund (Dec. 30, 1993) S-6351 G S-6351-20 H (12/93) IDS Strategy Fund (May 27, 1994) S-6380 H S-6380-20 K (5/94) Aggressive Equity Fund Equity Fund Income Fund Short-Term Income Fund Worldwide Growth Fund IDS Tax-Exempt Bond Fund (Jan. 28, 1994) S-6310 G (1/94) IDS Tax-Free Money Fund (March 1, 1994) S-6433 G (2/94) IDS Utilities Income Fund (Aug. 29, 1994) S-6341 J (8/94) Life Funds Retirement Annuity Mutual Funds (October 29, 1993) S-6466 H (10/93) IDS Life Capital Resource Fund, Inc. IDS Life Capital Resource Fund PAGE 2 IDS Life Aggressive Growth Fund IDS Life International Equity Fund IDS Life Managed Fund IDS Life Moneyshare Fund IDS Life Special Income Fund
SHAREHOLDER MEETINGS At the regular meetings scheduled to be held on November 9, 1994, shareholders of the funds listed on page one will vote on the following proposals: 1. New Investment Management and Services Agreement ("IMS Agreement") with IDS Financial Corporation ("IDS"). Except for shareholders of Strategy - Income, Strategy - Short-Term Income, Strategy - Worldwide Growth and Planned Investment Account, shareholders will be asked to approve a new IMS Agreement with IDS. For the non-money market funds, the fee will no longer be based in part on the assets of all non-money market funds in the IDS MUTUAL FUND GROUP (the "GROUP"). Instead, the fee rate will be based on the average daily net assets of each individual fund, decreasing as the fund increases in size. The tables below reflect the combined fee under the IMS Agreement and the Administration and Accounting Agreement (the "Admin Agreement"). Fees under the Admin Agreement range from a high of 0.06% to a low of 0.02%, decreasing as assets increase.
Small Life Life Assets Int'l Cap Int'l Aggr (Billions) Funds* Funds** Equity Growth First $0.25 0.86% 0.70% 0.93% 0.71% Next 0.25 0.83 0.67 0.91 0.69 Next 0.25 0.80 0.64 0.89 0.67 Next 0.25 0.77 0.61 0.87 0.65 Next 1.0 0.74 0.58 0.85 0.63 Over 2.0 0.71 0.55 0.83 0.61 * Global Growth, International, Precious Metals ** Discovery, Progressive Federal Life Assets Growth Municipal Capital (Billions) Funds* Mutual Income** Resource First $1.0 0.65% 0.57% 0.49% 0.68% Next 1.0 0.62 0.54 0.46 0.66 Next 1.0 0.59 0.51 0.43 0.64 Next 3.0 0.56 0.48 0.40 0.62 Over 6.0 0.53 0.45 0.37 0.60 * Growth, New Dimensions, Strategy - Aggressive Equity ** Insured Tax-Exempt, Tax-Exempt Bond Taxable Assets Extra Income High Life Special (Billions) Income Funds* Yield Income First $1.0 0.64% 0.57% 0.53% 0.66% Next 1.0 0.61 0.54 0.50 0.64 Next 1.0 0.58 0.51 0.47 0.62 Next 3.0 0.55 0.48 0.44 0.60 Next 3.0 0.52 0.45 0.41 0.58 Over 9.0 0.49 0.42 0.38 0.56 * Bond, Federal Income, Selective /TABLE PAGE 3
State Municipal Growth and Assets Income Blue Global Assets Income Life (Billions) Funds* Chip Bond (Billions) Funds** Managed First $0.25 0.51% 0.48% 0.71% First $0.50 0.57% 0.67% Next 0.25 0.48 0.45 0.69 Next 0.50 0.54 0.65 Next 0.25 0.45 0.42 0.67 Next 1.0 0.51 0.63 Next 0.25 0.43 0.39 0.65 Next 1.0 0.48 0.61 Over 1.0 0.40 0.36 0.63 Next 3.0 0.45 0.59 Over 6.0 0.42 0.57 * California Tax-Exempt, Massachusetts Tax-Exempt, Michigan Tax-Exempt, Minnesota Tax-Exempt, New York Tax-Exempt, Ohio Tax-Exempt ** Diversified Equity Income, Equity Plus, Managed Retirement, Stock, Strategy - Equity, Utilities Income
The fee schedules for Cash Management, Tax-Free Money and Life Moneyshare will remain unchanged. The IMS Agreement also will be modified to reflect the fact that, in the future, IDS may manage master funds that are not part of the GROUP. Multiple Classes of Shares. The publicly offered funds, except for Tax-Free Money, intend to offer multiple classes of shares if the proposed IMS Agreement is approved by shareholders. Each fund will offer three classes of shares: o Class A - sold with a front-end sales charge and a service fee; o Class B - sold with a contingent deferred sales charge("CDSC"), a 12b-1 fee and a service fee; o Class Y - for certain institutional shareholders meeting eligibility requirements, sold with no sales charge, no 12b- 1 fee and no service fee. Multiple classes of shares are expected to be implemented in March 1995. Shareholders of funds currently sold with a front-end sales charge will receive shares of Class A. Most shareholders of Strategy-Aggressive Equity and Strategy - Equity will receive shares of Class B. Shareholders of those two funds who are eligible for a waiver of the CDSC will receive shares of Class A. Institutional shareholders who meet eligibility requirements will receive shares of Class Y. If shareholders approve the proposed IMS Agreement, the Board of Directors/Trustees (the "Board") will approve a new 12b-1 plan for Class B with a fee equal to 0.75% of average daily net assets, a new shareholder servicing agreement for Class A and Class B with a fee equal to 0.175% of average daily net assets and a new transfer agency agreement for the new classes. These changes will be effective at the time multiple classes of shares are offered. 2. Name Changes. Shareholders of Equity Plus Fund will be asked to approve a change in the name of the fund to Equity Select Fund. IDS Life Capital Resource Fund, Inc., the corporate entity composed of three underlying funds, including IDS Life Capital Resource Fund, is seeking to change its name to IDS Life Investment Series, Inc. The name of the underlying fund will remain unchanged. If shareholders of Strategy - Aggressive Equity Fund and Strategy - Equity Fund approve the proposed IMS Agreement discussed in paragraph 1, the Board will change the names of those funds to Strategy Aggressive Fund and Equity Value Fund. PAGE 4 3. Diversification Status. Shareholders of Precious Metals will be asked to approve a change in the status of the fund from diversified to non-diversified. While concentration of investments in fewer issuers may result in more risk, the change will provide the portfolio manager with more flexibility in investing the fund's assets. 4. New 12b-1 Plan. Shareholders of Strategy - Aggressive Equity and Strategy - Equity will be asked to approve a new 12b-1 plan. Under the current 12b-1 plan, each fund pays a fee of 1% of the lower of the fund's average daily net assets or the original net asset value minus shares redeemed or transferred. Under the new 12b-1 plan, each fund will pay a fee of 0.75% of average daily net assets. In addition, each fund will pay a service fee of 0.175% of average daily net assets. 5. Mergers. Shareholders of Planned Investment Account, Strategy - Income, Strategy - Short-Term Income and Strategy - Worldwide Growth will be asked to approve the merger of those funds into other funds in the GROUP. Because its declining assets have made the fund difficult to manage, Planned Investment Account will be merged into Cash Management in November 1994. The Strategy funds originally were developed to give investors a contingent deferred sales charge option for paying the sales charge. The Strategy Funds were modeled on existing IDS funds that imposed a front-end sales charge. Once multiple classes of shares are implemented, as discussed in paragraph 1, there will no longer be any reason to have separate funds and the Strategy funds will be merged into the comparable IDS funds in March 1995. Income will be merged with Bond. Short-Term Income will be merged with Federal Income. Worldwide Growth will be merged with International. 6. Master-Feeder Investment Policy. At some future time, the Board of Directors/Trustees (the "Board") may determine that it is in the best interest of the Fund and its shareholders to create what is known as a master/feeder fund structure. This structure allows several investment companies and other investment groups, including pension plans and trust accounts, to have their investment portfolios managed as a combined pool called the master fund. The purpose of the structure is to achieve operational efficiencies. Except for shareholders of Strategy - Income, Strategy - Short-Term Income, Strategy - Worldwide Growth and Planned Investment Account, shareholders will be asked to approve a new investment policy permitting the structure if the Board decides it is appropriate. 7. Changes in Fundamental Policies. Except for shareholders of Cash Management, Planned Investment Account, Strategy - Income, Strategy - Short-Term Income, Strategy - Worldwide Growth, Tax-Free Money and Life Moneyshare, shareholders will be asked to change the status of a number of policies from fundamental (changeable only with shareholder approval) to nonfundamental (changeable by the Board without shareholder vote). Policies to be voted on include those regarding: buying on margin or selling short; pledging assets as collateral; investing in issuers with less than 3 years of operating history; investing in other investment companies; PAGE 5 investing for purposes of exercising control or management; investing in oil, gas or mineral exploration or development programs; investing in warrants; investing in illiquid securities; and investing in interest rate futures contracts. In addition, shareholders will be asked to approve a revision in the fundamental policy on making loans to permit the fund to make cash loans up to 5% of its total assets; a revision in the policy on investing in real estate to clarify that the Fund may invest in securities or other instruments backed by real estate or securities of companies engaged in the real estate business; and a revision in the policy on investing in commodities to clarify that the Fund may invest in securities or other instruments backed by, or whose value is derived from, physical commodities. Extra Income shareholders will vote to eliminate the policy on concentrating in electric utility securities. Shareholders of Global Bond will vote to revise the policy on concentrating in one industry to clarify that the Fund may invest more than 25% of its assets in government securities of a single country. NAME CHANGES OF ADVISER, DISTRIBUTOR AND CUSTODIAN Effective January 1, 1995, the name of IDS Financial Corporation, the Funds' investment adviser and transfer agent, will be changed to American Express Financial Corporation. The name of IDS Financial Services Inc., the Funds' distributor, will be changed to American Express Financial Advisors Inc. For those Funds for which IDS Trust Company serves as custodian, the name of the custodian will be changed to American Express Trust Company. EQUITY PLUS CHANGE IN FOREIGN INVESTMENT POLICY For Equity Plus, the "Foreign Investments" paragraph of the "Investment policies" section is modified to read that the Fund may invest up to 25% of its total assets in foreign investments. "PORTFOLIO MANAGER" CHANGE FOR DIVERSIFIED EQUITY INCOME Keith Tufte joined IDS in 1990 and serves as portfolio manager. He was appointed to manage this fund in September 1994. He also manages IDS wealth management yield portfolios and serves as associate portfolio manager of IDS Strategy, Equity Fund. Prior to joining IDS, he was vice president and analyst at J. P. Morgan Investment Management. S-6508 A (9/94) *Destroy - Nov. 9, 1994 -----END PRIVACY-ENHANCED MESSAGE-----