UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
AMENDMENT TO CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-2591
------------
AXP MONEY MARKET SERIES, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
200 AXP Financial Center, Minneapolis, Minnesota 55474
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810, Minneapolis, MN 55402-3268
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 330-9283
-----------------
Date of fiscal year end: 7/31
--------------
Date of reporting period: 7/31
--------------
AXP(R)
Cash
Management
Fund
Annual Report
for the Period Ended
July 31, 2003
AXP Cash Management Fund seeks to provide shareholders with maximum current
income consistent with liquidity and stability of principal.
- --------------------------------------------------------------------------------
(logo) (logo)
American AMERICAN
Express(R) EXPRESS
Funds (R)
- --------------------------------------------------------------------------------
Table of Contents
Fund Snapshot 3
Questions & Answers
with Portfolio Management 4
Investments in Securities 7
Financial Statements 11
Notes to Financial Statements 14
Independent Auditors' Report 20
Federal Income Tax Information 21
Board Members and Officers 25
- --------------------------------------------------------------------------------
2 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Fund Snapshot
AS OF JULY 31, 2003
PORTFOLIO MANAGER
Portfolio manager Jerri I. Cohen, CFA*
Since 12/02
Years in industry 22
* Team managed, led by Jerri I. Cohen.
FUND OBJECTIVE
For investors seeking maximum current income consistent with liquidity and
conservation of capital.
Inception dates
A: 10/6/75 B: 3/20/95 C: 6/26/00 Y: 3/20/95
Ticker symbols
A: IDSXX B: ACBXX C: -- Y: IDYXX
Total net assets $5.194 billion
Number of holdings 162
STYLE MATRIX
Shading within the style matrix indicates areas in which the Fund generally
invests.
DURATION
SHORT INT. LONG
X HIGH
MEDIUM QUALITY
LOW
SECTOR COMPOSITION
Percentage of portfolio assets
(pie chart)
Commercial paper 72.4%
Certificates of deposit 21.7%
U.S. Government agencies 5.9%
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 $1.00 per share, it is possible to lose
money by investing in the Fund.
Fund holdings are subject to change.
- --------------------------------------------------------------------------------
3 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Questions & Answers
WITH PORTFOLIO MANAGEMENT
In December 2002, Jerri I. Cohen, CFA, joined American Express Financial
Corporation and began leading a team that manages AXP Cash Management Fund's
portfolio.
Q: How did AXP Cash Management Fund perform for the 12 months ended July 31,
2003?
A: AXP Cash Management Fund's Class A shares returned 0.77% for the period.
The Class A shares seven-day yield was 0.32% on July 31, 2003.* The Fund
serves as a conservative investment choice for individuals who want to
avoid riskier markets. It also continues to be a good avenue to place cash
that may be needed in the near future.
Q: What factors significantly affected the Fund's performance?
A: The most significant factors were the economy and the actions taken by the
Federal Reserve Board (the Fed). During the year, the Fed maintained a
stimulative monetary policy designed to provide ongoing support to a
sluggish economy. The Fed reduced its target interest rate by 0.50% in
November 2002 and 0.25% in June 2003. These cuts brought the target rate
down to 1.00% -- a level last seen in 1958 -- and reduced the income
potential of money market investments. As short-term securities matured,
the Fund reinvested the proceeds in securities with lower rates and the
yield of the Fund gradually declined.
Q: What changes did you make to the Fund during this period?
A: The Fund sought to invest assets in an effective manner to generate a
competitive yield while maintaining a stable net asset value. During the
period, we increased the Fund's allocation to both commercial paper and
certificates of deposit, while reducing its position in government agency
securities. All of the Fund's investments continue to be in high quality
securities with minimal credit risk. We also actively managed the average
maturity of the Fund. With interest rates likely to stay low for a
considerable period of time, we tried to selectively extend the maturity
when the yield curve provided attractive opportunities. On July 31, 2003,
the Fund's average maturity was 72 days, an increase from the start of the
fiscal year. With these adjustments, we believe the Fund is strategically
positioned to better navigate the current low interest rate environment.
* Past performance does not guarantee future results. The Fund is neither
insured nor guaranteed by the FDIC (Federal Deposit Insurance Corporation)
or any other government agency. Yields will fluctuate. 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 seven-day current
yield more closely reflects the current earnings of the Fund than the total
return.
- --------------------------------------------------------------------------------
4 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Questions & Answers
(begin callout quote)> The Fund sought to invest assets in an effective manner
to generate a competitive yield while maintaining a stable net asset value. (end
callout quote)
(line chart)
CHANGES IN FEDERAL RESERVE MONETARY POLICY
JULY 31, 2002 TO JULY 31, 2003
TARGET FEDERAL FUNDS RATE
2.00%
1.75%-----------------------------------|
|
1.50% |
---------------------------------|
|
1.00% | 1.00%
0.50%
7/02 9/02 12/02 3/03 7/03
Source: Bloomberg
To help spur economic growth, the Federal Reserve has reduced its target Federal
Funds rate from 1.75% to 1.00% over the 12 months ended July 31, 2003. This was
the lowest level for short-term interest rates since 1958.
AVERAGE ANNUAL TOTAL RETURNS
as of July 31, 2003
Class A Class B Class C Class Y
(Inception dates) (10/6/75) (3/20/95) (6/26/00) (3/20/95)
NAV(1) NAV(2) After CDSC(3) NAV(2) After CDSC(4) NAV(1)
1 year +0.77% +0.20% -3.80% +0.20% +0.20% +0.85%
5 years +3.64% +2.91% +2.73% N/A N/A +3.67%
10 years +4.13% N/A N/A N/A N/A N/A
Since inception N/A +3.56% +3.56% +2.13% +2.13% +4.33%
(1) Sales charge is not applicable to these shares. Class Y shares available to
institutional investors only.
(2) Excluding sales charge.
(3) Returns at maximum contingent deferred sales charge (CDSC). CDSC applies as
follows: first year 5%; second and third year 4%; fourth year 3%; fifth
year 2%; sixth year 1%; no sales charge thereafter.
(4) 1% CDSC applies to redemptions made within the first year of purchase.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost. The performance shown for each class of
shares will vary due to differences in sales charges and fees. Short term
performance may be higher or lower than the figures shown. Visit
americanexpress.com/funds for current information.
- --------------------------------------------------------------------------------
5 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Questions & Answers
Q: How do you plan to manage the Fund for the coming months?
A: We believe there are several factors in place to spur economic growth,
including relatively low interest rates, a reduction in federal income tax
rates and improving corporate profits. However, we expect inflation to
remain low due to the current excess production capacity in the economy and
the lack of pricing power in most sectors. In addition, the labor market
remains weak. Given these conditions, we expect the Fed to keep rates low
through the end of the year. However, we could see rates rise in 2004.
As always, we attempt to maximize the Fund's yield without taking
unnecessary risks. Since we do not anticipate a near-term increase in
interest rates, we have positioned the portfolio with an average maturity
at the longer end of our range. We will continue to closely monitor
economic data and the interest rate yield curve, striving to strategically
adjust our portfolio positioning to maximize the return to Fund
shareholders.
Short-term income potential has fallen in the past year
(column chart)
U.S Treasury Yields
2%
(X) 1.69% (X) 1.68%
1% (Y) 0.94% (Y) 1.01%
3 month 6 month
Maturity
(X) July 31, 2002
(Y) July 31, 2003
Source: Bloomberg.
This illustration is not intended to represent the yield of any American Express
Fund.
- --------------------------------------------------------------------------------
6 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Investments in Securities
AXP Cash Management Fund
July 31, 2003
(Percentages represent value of investments compared to net assets)
U.S. government agencies (5.9%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
Federal Home Loan Nts
04-08-04 1.20% $50,000,000 $50,000,000
06-02-04 1.40 25,000,000 25,000,000
Federal Natl Mtge Assn Nts
07-20-04 1.06 50,400,000 50,400,000
07-26-04 1.03 42,000,000 42,000,000
07-27-04 1.18 42,000,000 42,000,000
08-13-04 1.20 42,000,000 42,000,000
08-30-04 1.30 33,500,000 33,500,000
10-29-03 1.06 23,500,000 23,438,417
Total U.S. government agencies
(Cost: $308,338,417) $308,338,417
Certificates of deposit (21.8%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
Abbey Natl Yankee
03-03-04 1.04% $55,000,000(c) $54,995,115
Bank One
04-16-04 1.03 60,000,000(c) 59,995,754
Banque Nationale de Paris Yankee
06-07-04 1.04 42,000,000(c) 41,990,955
Bayerische Landesbank Yankee
04-16-04 1.29 59,500,000 59,493,669
Canadian Imperial Bank of Commerce Yankee
08-06-03 1.29 26,900,000 26,900,000
03-05-04 1.30 55,000,000 55,000,000
05-28-04 1.06 33,500,000(c) 33,497,221
06-18-04 1.00 34,000,000 34,000,000
Credit Agricole Yankee
09-03-03 1.05 24,000,000 24,000,000
10-03-03 1.03 35,000,000 35,000,000
10-08-03 1.03 46,200,000 46,200,000
Credit Suisse First Boston NY Yankee
10-07-03 1.05% 30,000,000 30,000,000
01-16-04 1.11 50,000,000(c) 50,000,000
07-06-04 1.09 40,000,000(c) 40,000,000
Danske Bank NY Yankee
07-15-04 1.11 16,000,000 16,000,000
KBC Bank Yankee
09-08-03 1.04 40,000,000 39,999,995
Landesbank-Hessen-Thueringen Girozentrale Yankee
12-10-03 1.03 35,000,000 35,000,000
Lloyds TSB Bank Yankee
04-01-04 1.09 30,000,000 30,000,000
Nordea Bank NY Yankee
01-15-04 1.05 32,500,000 32,499,250
Royal Bank of Scotland Yankee
04-19-04 1.34 59,500,000 59,493,599
Societe Generale Yankee
02-26-04 1.05 60,000,000(c) 59,996,544
03-03-04 1.05 55,000,000(c) 54,996,769
Svenska Handelsbanken Yankee
09-03-03 1.04 38,000,000 38,000,000
09-30-03 1.06 15,000,000 15,000,000
Toronto Dominion Yankee
10-14-03 1.02 40,000,000 40,002,178
Wells Fargo Bank
08-22-03 1.02 55,000,000 55,000,000
Westdeutsche Landesbank Yankee
11-21-03 1.05 25,000,000(c) 25,000,000
02-19-04 1.36 39,700,000 39,700,000
Total certificates of deposit
(Cost: $1,131,761,049) $1,131,761,049
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
7 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Commercial paper (72.6%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
Asset-backed (35.6%)
Alpine Securitization
08-13-03 1.03% $34,500,000(b) $34,488,155
08-19-03 1.03 26,100,000(b) 26,086,559
Amsterdam Funding
08-08-03 1.04 32,700,000(b) 32,693,387
08-13-03 1.04 39,000,000(b) 38,986,480
10-02-03 1.05 35,000,000(b) 34,936,708
Barton Capital
08-12-03 1.03 29,000,000(b) 28,990,873
08-12-03 1.04 30,000,000(b) 29,990,467
08-19-03 1.03 28,000,000(b) 27,985,580
08-28-03 1.07 38,700,000(b) 38,668,943
CAFCO LLC
08-27-03 1.02 48,400,000(b) 48,364,345
09-02-03 1.04 33,000,000(b) 32,969,493
09-17-03 1.04 48,000,000(b) 47,934,827
CHARTA LLC
10-06-03 1.07 25,000,000(b) 24,950,958
CRC Funding LLC
08-11-03 1.13 33,000,000(b) 32,989,642
09-04-03 1.04 37,000,000(b) 36,963,658
CXC LLP
08-01-03 0.99 20,945,000(b) 20,945,000
08-07-03 0.98 8,500,000(b) 8,498,612
09-02-03 1.04 35,700,000(b) 35,666,997
Edison Asset Securitization
08-06-03 1.14 30,000,000(b) 29,995,250
08-07-03 1.01 20,000,000(b) 19,996,633
08-07-03 1.14 29,200,000(b) 29,194,452
12-04-03 1.03 28,500,000(b) 28,398,073
Fairway Finance
08-15-03 1.04 24,000,000(b) 23,990,293
09-15-03 1.00 30,000,000(b) 29,962,500
09-25-03 0.94 22,035,000(b) 22,003,355
Falcon Asset Securitization
08-14-03 1.08 12,400,000(b) 12,395,164
08-15-03 1.04 38,100,000(b) 38,084,591
08-18-03 1.05 33,000,000(b) 32,983,638
08-21-03 1.04 27,100,000(b) 27,084,342
08-22-03 1.05 20,000,000(b) 19,987,750
Fleet Funding
08-25-03 1.00 44,300,000(b) 44,270,467
10-09-03 1.03 49,000,000(b) 48,903,266
Galaxy Funding
08-25-03 1.00 10,000,000(b) 9,993,333
08-26-03 1.06 18,000,000(b) 17,986,750
08-26-03 1.08 53,700,000(b) 53,659,726
09-11-03 0.94 25,000,000(b) 24,973,236
09-19-03 1.03 9,000,000(b) 8,987,383
09-24-03 1.03 20,400,000(b) 20,368,482
Greyhawk Funding LLC
08-01-03 1.02 25,000,000(b) 25,000,000
08-01-03 1.03 20,000,000(b) 20,000,000
08-19-03 0.95 20,000,000(b) 19,990,500
08-27-03 1.04 35,000,000(b) 34,973,838
09-10-03 1.04 19,000,000(b) 18,978,044
09-24-03 1.04 25,000,000(b) 24,961,000
Kitty Hawk Funding
08-04-03 1.04 20,011,000(b) 20,009,266
08-22-03 1.04 7,600,000(b) 7,595,389
08-29-03 1.03 5,000,000(b) 4,995,994
08-29-03 1.04 15,000,000(b) 14,987,867
08-29-03 1.05 40,600,000(b) 40,566,843
Old Line Funding
08-28-03 1.05 6,416,000(b) 6,410,947
Preferred Receivables Funding
08-12-03 1.26 28,200,000(b) 28,189,143
08-21-03 1.05 20,000,000(b) 19,988,333
08-28-03 1.06 17,000,000(b) 16,986,485
Receivables Capital
09-10-03 1.03 38,600,000(b) 38,555,824
Sheffield Receivables
08-01-03 1.06 35,000,000(b) 35,000,000
08-04-03 1.04 25,000,000(b) 24,997,833
08-07-03 1.05 33,500,000(b) 33,494,138
08-11-03 0.98 17,060,000(b) 17,055,356
09-29-03 1.07 25,000,000(b) 24,956,160
Sigma Finance
05-06-04 1.06 42,000,000(b,c) 41,998,399
05-10-04 1.06 42,000,000(b,c) 41,995,220
06-09-04 1.06 43,000,000(b,c) 42,992,744
Variable Funding Capital
08-13-03 1.04 34,400,000(b) 34,388,075
Windmill Funding
10-10-03 1.04 8,600,000(b) 8,582,609
12-18-03 1.03 35,100,000(b) 34,960,409
12-22-03 1.03 42,000,000(b) 41,828,162
Total 1,849,767,946
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
8 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Commercial paper (continued)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
Banks and savings & loans (25.7%)
AIB North America
08-20-03 1.19% $48,300,000 $48,269,665
08-20-03 1.22 40,000,000 39,974,350
09-18-03 0.93 42,000,000 41,947,920
ANZ (Delaware)
12-11-03 1.03 34,000,000 33,871,593
Bank of Ireland
09-08-03 1.09 35,000,000(b) 34,959,915
09-08-03 1.10 35,000,000(b) 34,959,546
09-22-03 0.93 35,000,000(b) 34,952,983
09-25-03 1.04 22,000,000(b) 21,965,044
Barclays U.S. Funding
08-25-03 0.93 70,000,000 69,956,599
12-19-03 1.04 30,000,000 29,878,667
Danske Bank
08-11-03 1.04 43,100,000 43,087,549
09-30-03 1.04 40,000,000 39,930,667
12-23-03 1.03 23,000,000 22,905,240
Dexia Delaware LLC
08-06-03 1.04 20,800,000 20,796,996
08-22-03 1.04 21,500,000 21,486,957
HBOS Treasury Services
08-20-03 0.95 6,350,000 6,346,816
08-26-03 0.95 5,000,000 4,996,701
09-23-03 1.04 48,000,000 47,926,507
11-03-03 1.04 67,000,000 66,818,057
Landesbank Baden-Wuerttemberg Girozentrale
10-10-03 1.03 54,500,000 54,390,848
Nordea North America
08-06-03 1.03 35,000,000 34,994,993
09-24-03 1.04 18,000,000 17,971,920
Northern Rock
08-05-03 1.20 50,000,000(b) 49,993,333
08-18-03 1.00 24,500,000(b) 24,488,431
11-25-03 0.92 34,000,000(b) 33,899,209
11-26-03 1.05 25,000,000(b) 24,914,688
Scotiabanc
10-09-03 1.03 30,000,000(b) 29,940,775
Societe Generale North America
09-10-03 1.10 15,000,000 14,981,750
Spintab
08-14-03 1.07 46,000,000 45,982,226
08-21-03 1.00 40,000,000 39,977,778
10-02-03 1.04 18,900,000 18,866,148
Svenska Handelsbanken
10-01-03 1.04 50,000,000 49,911,889
10-03-03 1.03 25,000,000 24,954,938
Swedbank
09-10-03 0.95 13,400,000 13,385,856
09-15-03 1.05 15,000,000 14,980,313
Toronto Dominion Holdings
08-14-03 1.00 33,000,000 32,988,083
09-09-03 1.09 34,900,000 34,858,789
11-13-03 1.04 25,000,000 24,925,250
UBS Finance (Delaware) LLC
09-18-03 0.93 40,000,000 39,950,400
Westdeutsche Landesbank Girozentrale
01-27-04 1.36 42,500,000(b) 42,214,719
Total 1,333,604,108
Beverages & tobacco (0.3%)
Diageo Capital
10-02-03 1.03 16,000,000(b) 15,971,618
Broker dealers (4.4%)
Citigroup Global Markets Holdings
10-08-03 1.04 20,100,000 20,060,705
Goldman Sachs Group
11-17-03 1.31 58,700,000 58,471,069
11-18-03 1.31 37,200,000 37,053,577
11-20-03 0.92 48,500,000 48,362,422
Lehman Brothers Holdings
08-22-04 1.15 42,000,000(c) 42,000,000
Merrill Lynch
11-19-03 1.14 25,000,000(c) 25,000,000
Total 230,947,773
Chemicals (1.2%)
BASF AG
08-18-03 0.92 60,000,000(b) 59,973,933
See accompanying notes to investments in securities.
- --------------------------------------------------------------------------------
9 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Commercial paper (continued)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
Finance companies (1.7%)
Household Financial
08-08-03 1.20% $28,500,000 $28,493,350
09-04-03 1.04 29,000,000 28,971,516
09-12-03 1.00 30,000,000 29,965,000
Total 87,429,866
Financial services (1.2%)
Toyota Motor Credit
09-16-03 0.93 23,000,000(b) 22,972,668
10-09-03 1.03 10,000,000(b) 9,980,258
Verizon Network Funding
08-26-03 1.00 14,000,000 13,990,278
08-28-03 1.00 15,550,000 15,538,338
Total 62,481,542
Multi-industry (2.5%)
GE Capital Intl Funding
08-12-03 1.24 25,000,000(b) 24,990,528
12-11-03 1.05 26,000,000(b) 25,899,900
12-17-03 1.06 26,000,000(b) 25,894,353
General Electric Capital
09-12-03 1.02 21,000,000 20,975,010
11-07-03 1.02 32,200,000 32,110,591
Total 129,870,382
Total commercial paper
(Cost: $3,770,047,168) $3,770,047,168
Total investments in securities
(Cost: $5,210,146,634)(d) $5,210,146,634
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.
(c) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on July 31,
2003.
(d) Also represents the cost of securities for federal income tax purposes at
July 31, 2003.
- --------------------------------------------------------------------------------
10 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Financial Statements
Statements of assets and liabilities
AXP Cash Management Fund
July 31, 2003
Assets
Investments in securities, at value (Note 1)
(identified cost $5,210,146,634) $5,210,146,634
Cash in bank on demand deposit 15,149,335
Capital shares receivable 187,324
Accrued interest receivable 3,011,581
---------
Total assets 5,228,494,874
-------------
Liabilities
Dividends payable to shareholders 357,067
Capital shares payable 204,888
Payable for investment securities purchased 33,500,000
Accrued investment management services fee 43,716
Accrued distribution fee 18,526
Accrued transfer agency fee 14,059
Accrued administrative services fee 3,312
Other accrued expenses 581,420
-------
Total liabilities 34,722,988
----------
Net assets applicable to outstanding capital stock $5,193,771,886
==============
Represented by
Capital stock -- $.01 par value (Note 1) $ 51,938,370
Additional paid-in capital 5,141,830,916
Undistributed net investment income 2,601
Accumulated net realized gain (loss) (1)
--
Total -- representing net assets applicable to outstanding capital stock $5,193,771,886
==============
Net assets applicable to outstanding shares: Class A $4,648,884,255
Class B $ 278,198,615
Class C $ 4,433,014
Class Y $ 262,256,002
Net asset value per share of outstanding capital stock: Class A shares 4,648,700,315 $ 1.00
Class B shares 278,367,960 $ 1.00
Class C shares 4,433,221 $ 1.00
Class Y shares 262,335,527 $ 1.00
----------- --------------
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
11 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Statement of operations
AXP Cash Management Fund
Year ended July 31, 2003
Investment income
Income:
Interest $85,139,716
-----------
Expenses (Note 2):
Investment management services fee 17,632,026
Distribution fee
Class A 2,919,113
Class B 2,697,618
Class C 32,851
Transfer agency fee 13,060,974
Incremental transfer agency fee
Class A 1,061,178
Class B 74,947
Class C 914
Administrative services fees and expenses 1,445,919
Compensation of board members 42,042
Custodian fees 459,350
Printing and postage 2,410,823
Registration fees 563,581
Audit fees 36,500
Other 86,428
------
Total expenses 42,524,264
Expenses waived/reimbursed by AEFC (Note 2) (438,221)
--------
42,086,043
Earnings credits on cash balances (Note 2) (379,316)
--------
Total net expenses 41,706,727
----------
Investment income (loss) -- net 43,432,989
----------
Net increase (decrease) in net assets resulting from operations $43,432,989
===========
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
12 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Statements of changes in net assets
AXP Cash Management Fund
Year ended July 31, 2003 2002
Operations and distributions
Investment income (loss) -- net $ 43,432,989 $ 122,004,892
Net realized gain (loss) on investments -- 37,386
---------- -----------
Net increase (decrease) in net assets resulting from operations 43,432,989 122,042,278
---------- -----------
Distributions to shareholders from:
Net investment income
Class A (40,755,461) (114,798,111)
Class B (747,377) (3,590,767)
Class C (9,174) (22,053)
Class Y (1,920,977) (3,594,108)
---------- ----------
Total distributions (43,432,989) (122,005,039)
----------- ------------
Capital share transactions at constant $1 net asset value
Proceeds from sales
Class A shares (Note 2) 7,310,087,893 15,251,379,851
Class B shares 399,414,994 557,524,233
Class C shares 19,021,332 12,962,225
Class Y shares 263,665,221 212,427,535
Reinvestment of distributions at net asset value
Class A shares 40,976,910 115,021,206
Class B shares 754,160 3,560,788
Class C shares 8,811 20,690
Class Y shares 1,907,585 3,612,868
Payments for redemptions
Class A shares (8,468,383,146) (15,748,777,409)
Class B shares (Note 2) (501,593,543) (454,014,609)
Class C shares (Note 2) (18,156,196) (10,288,817)
Class Y shares (205,942,507) (187,522,143)
------------ ------------
Increase (decrease) in net assets from capital share transactions (1,158,238,486) (244,093,582)
-------------- ------------
Total increase (decrease) in net assets (1,158,238,486) (244,056,343)
Net assets at beginning of year 6,352,010,372 6,596,066,715
------------- -------------
Net assets at end of year $ 5,193,771,886 $ 6,352,010,372
=============== ================
Undistributed (excess of distributions over) net investment income $ 2,601 $ (1)
--------------- ----------------
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
13 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Notes to Financial Statements
AXP Cash Management Fund
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a series of AXP Money Market Series, Inc. and is registered under
the Investment Company Act of 1940 (as amended) (the 1940 Act) as a diversified,
open-end management investment company. AXP Money Market Series, Inc. has 10
billion authorized shares of capital stock that can be allocated among the
separate series as designated by the board. The Fund invests primarily in money
market instruments.
The Fund offers Class A, Class B, Class C and Class Y shares.
o Class A shares have no sales charge.
o Class B shares may be subject to a contingent deferred sales charge (CDSC)
and automatically convert to Class A shares during the ninth calendar year
of ownership.
o Class C shares may be subject to a CDSC.
o Class Y shares have no sales charge and are offered only to qualifying
institutional investors.
All classes of shares have identical voting, dividend and liquidation rights.
The distribution fee and incremental transfer agency fee (class specific
expenses) differ among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
The Fund's significant accounting policies are summarized below:
Use of estimates
Preparing financial statements that conform to accounting principles generally
accepted in the United States of America requires management to make estimates
(e.g., on assets, liabilities and contingent assets and liabilities) that could
differ from actual results.
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.
- --------------------------------------------------------------------------------
14 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Federal taxes
The Fund's policy is to comply with all sections of the Internal Revenue Code
that apply to regulated investment companies and to distribute substantially all
of its taxable income to shareholders. No provision for income or excise taxes
is thus required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes. 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 $2,602
and accumulated net realized gain has been decreased by $2,602.
The tax character of distributions paid for the years indicated is as follows:
Year ended July 31, 2003 2002
Class A
Distributions paid from:
Ordinary income $40,755,461 $114,798,111
Long-term capital gain -- --
Class B
Distributions paid from:
Ordinary income 747,377 3,590,767
Long-term capital gain -- --
Class C
Distributions paid from:
Ordinary income 9,174 22,053
Long-term capital gain -- --
Class Y
Distributions paid from:
Ordinary income 1,920,977 3,594,108
Long-term capital gain -- --
As of July 31, 2003, the components of distributable earnings on a tax basis are
as follows:
Undistributed ordinary income $359,668
Accumulated long-term gain (loss) $ (1)
Unrealized appreciation (depreciation) $ --
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
recognized daily.
- --------------------------------------------------------------------------------
15 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
2. EXPENSES AND SALES CHARGES
The Fund has agreements with American Express Financial Corporation (AEFC) to
manage its portfolio and provide administrative services. Under an Investment
Management Services Agreement, AEFC determines which securities will be
purchased, held or sold. The management fee is a percentage of the Fund's
average daily net assets in reducing percentages from 0.36% to 0.25% annually.
Under an Administrative Services Agreement, the Fund pays AEFC a fee for
administration and accounting services at a percentage of the Fund's average
daily net assets in reducing percentages from 0.03% to 0.02% annually. A minor
portion of additional administrative service expenses paid by the Fund are
consultants' fees and fund office expenses. Under this agreement, the Fund also
pays taxes, audit and certain legal fees, registration fees for shares,
compensation of board members, corporate filing fees and any other expenses
properly payable by the Fund and approved by the board.
Under a separate Transfer Agency Agreement, American Express Client Service
Corporation (AECSC) maintains shareholder accounts and records. The incremental
transfer agency fee is the amount charged to the specific classes for the
additional expense above the fee for Class Y. The Fund pays AECSC an annual fee
per shareholder account for this service as follows:
o Class A $22.00
o Class B $23.00
o Class C $22.50
o Class Y $20.00
In addition, there is an annual closed-account fee of $5 per inactive account,
charged on a pro rata basis from the date the account becomes inactive until the
date the account is purged from the transfer agent system generally within one
year.
Under terms of a prior agreement that ended April 30, 2003, the Fund paid a
transfer agency fee at an annual rate per shareholder account of $24 for Class
A, $25 for Class B, $24.50 for Class C and $22 for Class Y.
The Fund has agreements with American Express Financial Advisors Inc. (the
Distributor) for distribution and shareholder services. Under a Plan and
Agreement of Distribution, the Fund pays a fee at an annual rate of 0.75% of the
Fund's average daily net assets attributable to Class B and Class C shares.
Effective Jan. 1, 2003, the Fund has an agreement to pay a fee at an annual rate
of 0.10% of the Fund's average daily net assets attributable to Class A shares
and the fee for Class B will increase to 0.85% of the Fund's average daily net
assets. As of July 31, 2003, the additional 0.10% for Class B has not been
implemented.
Sales charges received by the Distributor for distributing Fund shares were
$2,559,926 for Class B and $10,165 for Class C for the year ended July 31, 2003.
Effective Jan. 1, 2003, AEFC and its affiliates may limit the expenses of one or
more classes for the purpose of increasing its yield. This expense limitation
policy may be revised or terminated at any time without notice. As of July 31,
2003, AEFC and its affiliates waived certain fees and expenses to 1.26% for
Class B and 1.27% for Class C.
During the year ended July 31, 2003, the Fund's custodian and transfer agency
fees were reduced by $379,316 as a result of earnings credits from overnight
cash balances.
- --------------------------------------------------------------------------------
16 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
3. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of securities aggregated
$29,717,946,611 and $30,842,043,633, respectively, for the year ended July 31,
2003. Realized gains and losses are determined on an identified cost basis.
4. BANK BORROWINGS
The Fund has a revolving credit agreement with a syndicate of banks headed by
Deutsche Bank, whereby the Fund is permitted to have bank borrowings for
temporary or emergency purposes to fund shareholder redemptions. The agreement
went into effect Sept. 24, 2002. The Fund must maintain asset coverage for
borrowings of at least 300%. The agreement, which enables the Fund to
participate with other American Express mutual funds, permits borrowings up to
$500 million, collectively. Interest is charged to each Fund based on its
borrowings at a rate equal to either the LIBOR plus 0.50%, the IBOR plus 0.50%
or the higher of the Federal Funds Rate plus 0.25% and the Prime Lending Rate.
Borrowings are payable within 60 days after such loan is executed. The Fund also
pays a commitment fee equal to its pro rata share of the amount of the credit
facility at a rate of 0.09% per annum. Prior to this agreement, the Fund had a
revolving credit agreement that permitted borrowings up to $200 million with
U.S. Bank, N.A. The Fund had no borrowings outstanding during the year ended
July 31, 2003.
- --------------------------------------------------------------------------------
17 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
5. FINANCIAL HIGHLIGHTS
The tables below show certain important financial information for evaluating the
Fund's results.
Class A
Per share income and capital changes(a)
Fiscal period ended July 31, 2003 2002 2001 2000 1999
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income (loss) .01 .02 .05 .05 .05
Less distributions:
Dividends from net investment income (.01) (.02) (.05) (.05) (.05)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
Ratios/supplemental data
Net assets, end of period (in millions) $4,649 $5,766 $6,149 $5,438 $5,032
Ratio of expenses to average daily net assets(c) .69% .59% .59% .58% .57%
Ratio of net investment income (loss) to average daily net assets .78% 1.89% 5.18% 5.37% 4.65%
Total return(g) .77% 1.93% 5.35% 5.55% 4.71%
Class B
Per share income and capital changes(a)
Fiscal period ended July 31, 2003 2002 2001 2000 1999
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income (loss) -- .01 .05 .05 .04
Less distributions:
Dividends from net investment income -- (.01) (.05) (.05) (.04)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
Ratios/supplemental data
Net assets, end of period (in millions) $278 $380 $273 $232 $192
Ratio of expenses to average daily net assets(c) 1.26%(e) 1.34% 1.34% 1.33% 1.32%
Ratio of net investment income (loss) to average daily net assets .21% 1.13% 4.37% 4.64% 3.88%
Total return(g) .20% 1.13% 4.57% 4.76% 3.94%
See accompanying notes to financial highlights.
- --------------------------------------------------------------------------------
18 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Class C
Per share income and capital changes(a)
Fiscal period ended July 31, 2003 2002 2001 2000(b)
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income (loss) -- .01 .05 --
Less distributions:
Dividends from net investment income -- (.01) (.05) --
Net asset value, end of period $1.00 $1.00 $1.00 $1.00
Ratios/supplemental data
Net assets, end of period (in millions) $4 $4 $1 $--
Ratio of expenses to average daily net assets(c) 1.27%(f) 1.34% 1.34% 1.33%(d)
Ratio of net investment income (loss) to average daily net assets .21% .99% 3.88% 6.10%(d)
Total return(g) .20% 1.14% 4.68% .63%(h)
Class Y
Per share income and capital changes(a)
Fiscal period ended July 31, 2003 2002 2001 2000 1999
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations:
Net investment income (loss) .01 .02 .05 .05 .05
Less distributions:
Dividends from net investment income (.01) (.02) (.05) (.05) (.05)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
Ratios/supplemental data
Net assets, end of period (in millions) $262 $203 $174 $142 $124
Ratio of expenses to average daily net assets(c) .62% .57% .57% .57% .56%
Ratio of net investment income (loss) to average daily net assets .82% 1.86% 5.18% 5.42% 4.64%
Total return(g) .85% 1.95% 5.37% 5.56% 4.72%
Notes to financial highlights
(a) For a share outstanding throughout the period. Rounded to the nearest cent.
(b) Inception date was June 26, 2000.
(c) Expense ratio is based on total expenses of the Fund before reduction of
earnings credits on cash balances.
(d) Adjusted to an annual basis.
(e) AEFC waived/reimbursed the Fund for certain expenses. Had AEFC not done so,
the annual ratio of expenses for Class B would have been 1.38% for the year
ended July 31, 2003.
(f) AEFC waived/reimbursed the Fund for certain expenses. Had AEFC not done so,
the annual ratio of expenses for Class C would have been 1.38% for the year
ended July 31, 2003.
(g) Total return does not reflect payment of a sales charge.
(h) Not annualized.
- --------------------------------------------------------------------------------
19 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Independent Auditors' Report
THE BOARD AND SHAREHOLDERS
AXP MONEY MARKET SERIES, INC.
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments in securities, of AXP Cash Management Fund (a series
of AXP Money Market Series, Inc.) as of July 31, 2003, the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period ended July 31, 2003, and the financial
highlights for each of the years in the five-year period ended July 31, 2003.
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 auditing standards generally accepted
in the United States of America. 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. Our procedures included confirmation of
securities owned as of July 31, 2003, by correspondence with the custodian or by
other appropriate auditing procedures. 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.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of AXP
Cash Management Fund as of July 31, 2003, and the results of its operations,
changes in its net assets, and the financial highlights for each of the periods
stated in the first paragraph above, in conformity with accounting principles
generally accepted in the United States of America.
KPMG LLP
Minneapolis, Minnesota
September 12, 2003
- --------------------------------------------------------------------------------
20 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Federal Income Tax Information
(UNAUDITED)
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, 2003
Class A
Income distributions -- taxable as dividend income:
Qualified Dividend Income for individuals (effective for
distributions made after Jan. 1, 2003) 0.00%
Dividends Received Deduction for corporations 0.00%
Payable date Per share
Aug. 26, 2002 $0.00097
Sept. 26, 2002 0.00110
Oct. 25, 2002 0.00096
Nov. 25, 2002 0.00094
Dec. 20, 2002 0.00072
Jan. 22, 2003 0.00070
Feb. 21, 2003 0.00048
March 24, 2003 0.00041
April 24, 2003 0.00045
May 23, 2003 0.00040
June 23, 2003 0.00039
July 24, 2003 0.00030
Total Distributions $0.00782
- --------------------------------------------------------------------------------
21 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Class B
Income distributions -- taxable as dividend income:
Qualified Dividend Income for individuals (effective for
distributions made after Jan. 1, 2003) 0.00%
Dividends Received Deduction for corporations 0.00%
Payable date Per share
Aug. 26, 2002 $0.00037
Sept. 26, 2002 0.00042
Oct. 25, 2002 0.00036
Nov. 25, 2002 0.00034
Dec. 20, 2002 0.00017
Jan. 22, 2003 0.00011
Feb. 21, 2003 0.00009
March 24, 2003 0.00005
April 24, 2003 0.00005
May 23, 2003 0.00004
June 23, 2003 0.00005
July 24, 2003 0.00005
Total Distributions $0.00210
- --------------------------------------------------------------------------------
22 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Class C
Income distributions -- taxable as dividend income:
Qualified Dividend Income for individuals (effective for
distributions made after Jan. 1, 2003) 0.00%
Dividends Received Deduction for corporations 0.00%
Payable date Per share
Aug. 26, 2002 $0.00038
Sept. 26, 2002 0.00042
Oct. 25, 2002 0.00037
Nov. 25, 2002 0.00035
Dec. 20, 2002 0.00017
Jan. 22, 2003 0.00010
Feb. 21, 2003 0.00009
March 24, 2003 0.00005
April 24, 2003 0.00005
May 23, 2003 0.00004
June 23, 2003 0.00004
July 24, 2003 0.00006
Total Distributions $0.00212
- --------------------------------------------------------------------------------
23 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Class Y
Income distributions -- taxable as dividend income:
Qualified Dividend Income for individuals (effective for
distributions made after Jan. 1, 2003) 0.00%
Dividends Received Deduction for corporations 0.00%
Payable date Per share
Aug. 26, 2002 $0.00098
Sept. 26, 2002 0.00111
Oct. 25, 2002 0.00097
Nov. 25, 2002 0.00095
Dec. 20, 2002 0.00074
Jan. 22, 2003 0.00077
Feb. 21, 2003 0.00058
March 24, 2003 0.00051
April 24, 2003 0.00056
May 23, 2003 0.00049
June 23, 2003 0.00048
July 24, 2003 0.00041
Total Distributions $0.00855
- --------------------------------------------------------------------------------
24 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Board Members and Officers
Shareholders elect a board that oversees the Fund's operations. The board
appoints officers who are responsible for day-to-day business decisions based on
policies set by the board.
The following is a list of the Fund's board members. Each member oversees 15
Master Trust portfolios and 83 American Express mutual funds. Board members
serve until the next regular shareholders' meeting or until he or she reaches
the mandatory retirement age established by the board.
Independent Board Members
Name, address, age Position held Principal occupation during past Other directorships
with Fund and five years
length of service
- ---------------------------------- ------------------ ------------------------------------- ---------------------------------
Arne H. Carlson Board member Chair, Board Services Corporation
901 S. Marquette Ave. since 1999 (provides administrative services
Minneapolis, MN 55402 to boards). Former Governor of
Age 68 Minnesota
- ---------------------------------- ------------------ ------------------------------------- ---------------------------------
Philip J. Carroll, Jr. Board member Retired Chairman and CEO, Fluor Scottish Power PLC, Vulcan
901 S. Marquette Ave. since 2002 Corporation (engineering and Materials Company, Inc.
Minneapolis, MN 55402 construction) since 1998 (construction
Age 65 materials/chemicals)
- ---------------------------------- ------------------ ------------------------------------- ---------------------------------
Livio D. DeSimone Board member Retired Chair of the Board and Cargill, Incorporated
30 Seventh Street East since 2001 Chief Executive Officer, Minnesota (commodity merchants and
Suite 3050 Mining and Manufacturing (3M) processors), General Mills,
St. Paul, MN 55101-4901 Inc. (consumer foods), Vulcan
Age 69 Materials Company (construction
materials/ chemicals), Milliken
& Company (textiles and
chemicals), and Nexia
Biotechnologies, Inc.
- ---------------------------------- ------------------ ------------------------------------- ---------------------------------
Heinz F. Hutter* Board member Retired President and Chief
901 S. Marquette Ave. since 1994 Operating Officer, Cargill,
Minneapolis, MN 55402 Incorporated (commodity merchants
Age 74 and processors)
- ---------------------------------- ------------------ ------------------------------------- ---------------------------------
Anne P. Jones Board member Attorney and Consultant
901 S. Marquette Ave. since 1985
Minneapolis, MN 55402
Age 68
- ---------------------------------- ------------------ ------------------------------------- ---------------------------------
Stephen R. Lewis, Jr.** Board member Retired President and Professor of Valmont Industries, Inc.
901 S. Marquette Ave. since 2002 Economics, Carleton College (manufactures irrigation
Minneapolis, MN 55402 systems)
Age 64
- ---------------------------------- ------------------ ------------------------------------- ---------------------------------
Alan G. Quasha Board member President, Quadrant Management, Compagnie Financiere Richemont
901 S. Marquette Ave. since 2002 Inc. (management of private AG (luxury goods), Harken
Minneapolis, MN 55402 equities) Energy Corporation (oil and gas
Age 53 exploration) and SIRIT Inc.
(radio frequency identification
technology)
- ---------------------------------- ------------------ ------------------------------------- ---------------------------------
* Interested person of AXP Partners International Aggressive Growth Fund and
AXP Partners Aggressive Growth Fund by reason of being a security holder of
J P Morgan Chase & Co., which has a 45% interest in American Century
Companies, Inc., the parent company of the subadviser of two of the AXP
Partners Funds, American Century Investment Management, Inc.
** Interested person of AXP Partners International Aggressive Growth Fund by
reason of being a security holder of FleetBoston Financial Corporation,
parent company of Liberty Wanger Asset Management, L.P., one of the fund's
subadvisers.
- --------------------------------------------------------------------------------
25 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
Independent Board Members (continued)
Name, address, age Position held Principal occupation during past Other directorships
with Fund and five years
length of service
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
Alan K. Simpson Board member Former three-term United States Biogen, Inc.
1201 Sunshine Ave. since 1997 Senator for Wyoming (biopharmaceuticals)
Cody, WY 82414
Age 71
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
Alison Taunton-Rigby Board member President, Forester Biotech since
901 S. Marquette Ave. since 2002 2000. Former President and CEO,
Minneapolis, MN 55402 Aquila Biopharmaceuticals, Inc.
Age 59
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
Board Members Affiliated with AEFC***
Name, address, age Position held Principal occupation during past Other directorships
with Fund and five years
length of service
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
Barbara H. Fraser Board member Executive Vice President - AEFA
1546 AXP Financial Center since 2002 Products and Corporate Marketing of
Minneapolis, MN 55474 AEFC since 2002. President -
Age 53 Travelers Check Group, American
Express Company, 2001-2002.
Management Consultant, Reuters,
2000-2001. Managing Director -
International Investments, Citibank
Global, 1999-2000. Chairman and
CEO, Citicorp Investment Services
and Citigroup Insurance Group,
U.S., 1998-1999
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
Stephen W. Roszell Board member Senior Vice President -
50238 AXP Financial Center since 2002, Vice Institutional Group of AEFC
Minneapolis, MN 55474 President since
Age 54 2002
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
William F. Truscott Board member Senior Vice President - Chief
53600 AXP Financial Center since 2001, Vice Investment Officer of AEFC since
Minneapolis, MN 55474 President since 2001. Former Chief Investment
Age 42 2002 Officer and Managing Director,
Zurich Scudder Investments
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
*** Interested person by reason of being an officer, director and/or employee of
AEFC.
- --------------------------------------------------------------------------------
26 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
The board has appointed officers who are responsible for day-to-day business
decisions based on policies it has established. The officers serve at the
pleasure of the board. In addition to Mr. Roszell, who is vice president, and
Mr. Truscott, who is vice president, the Fund's other officers are:
Other Officers
Name, address, age Position held Principal occupation during past Other directorships
with Fund and five years
length of service
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
Jeffrey P. Fox Treasurer since Vice President - Investment
50005 AXP Financial Center 2002 Accounting, AEFC, since 2002; Vice
Minneapolis, MN 55474 President - Finance, American
Age 48 Express Company, 2000-2002; Vice
President - Corporate Controller,
AEFC, 1996-2000
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
Paula R. Meyer President since Senior Vice President and General
596 AXP Financial Center 2002 Manager - Mutual Funds, AEFC, since
Minneapolis, MN 55474 2002; Vice President and Managing
Age 49 Director - American Express Funds,
AEFC, 2000-2002; Vice President,
AEFC, 1998-2000
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
Leslie L. Ogg Vice President, President of Board Services
901 S. Marquette Ave. General Counsel, Corporation
Minneapolis, MN 55402 and Secretary
Age 64 since 1978
- --------------------------------- ------------------- ------------------------------------- ---------------------------------
The SAI has additional information about the Fund's directors and is available,
without charge, upon request by calling (800) 862-7919.
- --------------------------------------------------------------------------------
27 -- AXP CASH MANAGEMENT FUND -- 2003 ANNUAL REPORT
The policies and procedures that the Fund uses to determine how to vote proxies
relating to portfolio securities can be found in the Fund's Statement of
Additional Information (SAI) which is available (i) without charge, upon
request, by calling toll-free (800) 862-7919; (ii) on the American Express
Company Web site at americanexpress.com/funds; and (iii) on the Securities and
Exchange Commission Web site at http://www.sec.gov.
- --------------------------------------------------------------------------------
(logo)
AMERICAN
EXPRESS
(R)
- --------------------------------------------------------------------------------
American Express Funds
70100 AXP Financial Center
Minneapolis, MN 55474
This report must be accompanied or preceded by the Fund's current prospectus.
Distributed by American Express Financial Advisors Inc. Member NASD. American
Express Company is separate from American Express Financial Advisors Inc. and is
not a broker-dealer.This report must be accompanied or preceded by the Fund's
current prospectus. Distributed by American Express Financial Advisors Inc.
Member NASD. American Express Company is separate from American Express
Financial Advisors Inc. and is not a broker-dealer.
Item 2. (a) The Registrant has adopted a code of ethics that applies to the
Registrant's principal executive officer and principal financial
officer. A copy of the code of ethics is filed as an exhibit to this
form N-CSR.
(b) During the period covered by this report, there were not any
amendments to the provisions of the code of ethics adopted in 2(a)
above.
(c) During the period covered by this report, there were not any
implicit or explicit waivers to the provisions of the code of ethics
adopted in 2(a).
Item 3. The Registrant's board of directors has determined that independent
directors Livio D. DeSimone, Anne P. Jones, and Alan G. Quasha, each
qualify as audit committee financial experts.
Item 4. Principal Accountant Fees and Services. Not applicable.
Item 5. Audit Committee of Listed Registrants. Not applicable.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies. Not applicable.
Item 8. [Reserved]
Item 9. Controls and Procedures.
(a) The registrant's Principal Executive Officer and Principal
Financial Officer have evaluated the registrant's disclosure
controls and procedures within 90 days of this filing and have
concluded that the registrant's disclosure controls and
procedures by the registrant in this Form N-CSR was recorded,
processed, summarized, and reported timely.
(b) At the date of filing this Form N-CSR, the registrant's
Principal Executive Officer and Principal Financial Officer are
aware of no significant changes in the registrant's internal
controls or in other factors that could significantly affect
these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Item 10. Exhibits.
(a)(1) Code of ethics as applies to the Registrant's principal
executive officer and principal financial officer, as required to be
disclosed under Item 2 of Form N-CSR, is attached as Ex. 99.CODE ETH.
(a)(2) Separate certification for the Registrant's principal
executive officer and principal financial officer, as required by
Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a)
under the Investment Company Act of 1940, are attached as
EX.99.CERT.
(b) A certification by the Registrant's principal executive officer
and principal financial officer, pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment
Company Act of 1940, is attached as EX.99.906 CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) AXP Money Market Series, Inc.
By /s/ Paula R. Meyer
------------------
Paula R. Meyer
President and Principal Executive Officer
Date November 6, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /s/ Paula R. Meyer
------------------
Paula R. Meyer
President and Principal Executive Officer
Date November 6, 2003
By /s/ Jeffrey P. Fox
------------------
Jeffrey P. Fox
Treasurer and Principal Financial Officer
Date November 6, 2003