SECURITIES AND EXCHANGE COMMISSION

                               Washington, D.C.  20549

                                     FORM 10-Q

      (Mark One)

          X  Quarterly report pursuant to Section 13 or 15(d) of the
             Securities Exchange Act of 1934

                 For the quarterly period ended September 30, 1996 or

             Transition report pursuant to Section 13 or 15(d) of the
             Securities Exchange Act of 1934

               For the transition period from      to           

                            Commission File Number 0-17443


                           IDS MANAGED FUTURES II, L.P.                
             (Exact name of registrant as specified in its charter)

                     Delaware                          06-1207252               
            State or other jurisdiction of            (I.R.S. Employer
            incorporation or organization)             Identification #)

                233 South Wacker Dr., Suite 2300, Chicago, IL  60606    
               (Address of principal executive offices)       (Zip Code)


          Registrant's telephone number, including area code (312) 460-4000

                                                      
             Former name, former address and former fiscal year, if changed
             since last report.       Not Applicable

          Indicate by check mark whether the registrant (1) has filed
          all reports required to be filed by Section 13 or 15(d) of the
          Securities Exchange Act of 1934 during the preceding 12 months
          (or for such shorter period that the registrant was required to
          file such reports), and (2) has been subject to such filing
          requirements for the past 90 days.     Yes   X       No      


<TABLE>
                                                                Part I.  Financial Information


Item 1.  Financial Statements

Following are Financial Statements for the fiscal quarter ended September 30, 1996,
and the additional time frames as noted:

                                               Fiscal Quarter    Year to Date    Fiscal Year   Fiscal Quarter Year to Date
                                                Ended 9/30/96     To 9/30/96    Ended 12/31/95 Ended 9/30/95   To 9/30/95
                                               --------------   --------------   -------------- --------------------------
<S>                                            <C>              <C>             <C>            <C>            <C>
Statement of
Financial Condition                                   X                               X

Statement of
Operations                                            X               X                              X             X

Statement of Changes
in Partners' Capital                                                  X

Statement of
Cash Flows                                                            X                                            X

Notes to Financial
Statements                                            X


         IDS MANAGED FUTURES II, L.P.

       STATEMENTS OF FINANCIAL CONDITION

                                                Sep 30, 1996     Dec 31, 1995
                                               ---------------  --------------
<S>                                            <C>              <C>
ASSETS

Equity in commodity futures
   trading accounts:
   Account balance                                 $9,929,023     $10,585,211
   Unrealized gain on open
     futures contracts                              1,086,807         565,658
                                               ---------------  --------------
                                                   11,015,830      11,150,869

Interest receivable                                    34,031          39,588
                                               ---------------  --------------
      Total assets                                $11,049,861     $11,190,457
                                               ===============  ==============

LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
   Accrued commissions on open
     futures contracts due to AXP Advisors and        $70,388         $36,853
   Accrued management fee                              32,965          36,944
   Accrued incentive fee                               20,076          10,682
   Accrued operating expenses                          34,763          70,279
   Redemptions payable                                 43,394          19,908
                                               ---------------  --------------
      Total liabilities                               201,586         174,666

Partners' Capital:
   Limited partners (20,658.93 units               10,520,103      10,700,674
     outstanding at 9/30/96, 21,884.34
     units outstanding at 12/31/95) (see Note 1)
   General partners (644.45 units out-                328,172         315,117
     standing at 9/30/96 and 12/31/95) (see Note 1)
                                               ---------------  --------------
      Total partners' capital                      10,848,275      11,015,791
                                               ---------------  --------------
      Total liabilities and
        partners' capital                         $11,049,861     $11,190,457
                                               ===============  ==============

See accompanying notes to financial statements.
                                               UNAUDITED


                                               IDS MANAGED FUTURES II, L.P.

                                               STATEMENTS OF OPERATIONS

                                                 Jul 1, 1996     Jan 1, 1996     Jul 1, 1995    Jan 1, 1995
                                                   through         through         through        through
                                                Sep 30, 1996     Sep 30, 1996   Sep 30, 1995   Sep 30, 1995
                                               ---------------  --------------  -------------  -------------
<S>                                            <C>              <C>             <C>            <C>
REVENUES

Gains on trading of commodity futures
  and forwards contracts, physical
  commodities and related options:
  Realized gain (loss) on closed positions          ($470,775)       $319,366      ($101,870)    $3,003,837
   Change in unrealized gain (loss)
     on open positions                                895,875         521,149         43,058       (486,715)
Interest income                                       108,576         326,931        118,162        356,650
Foreign currency transaction gain (loss)               (5,978)        (31,963)           427         94,151
                                               ---------------  --------------  -------------  -------------
      Total revenues                                 $527,699      $1,135,482        $59,777     $2,967,924



EXPENSES

   Commissions paid to AXP Advisors and CIS           140,230         362,300         94,137        252,247
   Exchange fees                                        2,594           6,504          1,164          4,867
   Management fees                                     96,744         295,915        108,475        322,154
   Incentive fees                                      20,076          25,194              0        175,165
   Operating expenses                                  13,234           7,163          5,376         59,809
                                               ---------------  --------------  -------------  -------------
      Total expenses                                  272,878         697,076        209,151        814,242
                                               ---------------  --------------  -------------  -------------
      Net profit (loss)                              $254,821        $438,406      ($149,375)    $2,153,682
                                               ===============  ==============  =============  =============
PROFIT (LOSS) PER UNIT OF
  PARTNERSHIP INTEREST                                 $11.97          $20.27         ($6.53)        $88.54
                                               ===============  ==============  =============  =============

See accompanying notes to financial statements.
                                                              UNAUDITED


                                              IDS MANAGED FUTURES II, L.P.

                                  STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

                              For the period January 1, 1996 through September 30, 1996


                                                                      Limited        General
                                                       Units*        Partners       Partners          Total
                                               ---------------  --------------  -------------  -------------
<S>                                            <C>              <C>             <C>            <C>
Partners' capital at January 1, 1996                21,884.34     $10,700,674       $315,117    $11,015,791

Net profit (loss)                                                     425,351         13,055        438,406

Redemptions (see Note 1)                            (1,225.41)       (605,922)             0       (605,922)
                                               ---------------  --------------  -------------  -------------
Partners' capital at September 30, 1996             20,658.93     $10,520,103       $328,172    $10,848,275
                                               ===============  ==============  =============  =============


Net asset value per unit
   January 1, 1996                                                    $488.96        $488.96

Net profit (loss) per unit                                              20.27          20.27
                                                                --------------  -------------
Net asset value per unit
   September 30, 1996                                                 $509.23        $509.23



* Units of Limited Partnership interest.

See accompanying notes to financial statements.
                                                              UNAUDITED


                                IDS MANAGED FUTURES II, L.P.

                                STATEMENTS OF CASH FLOWS


                                                 Jan 1, 1996     Jan 1, 1995
                                                  through          through 
                                                Sep 30, 1996     Sep 30, 1995
                                               ---------------  --------------
<S>                                            <C>              <C>
Cash flows from operating activities:
   Net profit/(loss)                                 $438,406      $2,153,682
   Adjustments to reconcile net loss
     to net cash provided by (used in)
     operating activities:
   Change in assets and liabilities:
     Unrealized gain (loss) on open
       futures contracts                             (521,149)        486,715
     Interest receivable                                5,557          (2,060)
     Accrued liabilities                                3,434          15,632
     Redemptions payable                               23,486          23,881
                                               ---------------  --------------
     Net cash provided by (used in)
       operating activities                           (50,266)      2,677,850

Cash flows from financing activities:

   Partner redemptions                               (605,922)       (852,432)
                                               ---------------  --------------
   Net cash provided by (used in)
     financing activities                            (605,922)       (852,432)
                                               ---------------  --------------
Net increase (decrease) in cash                      (656,188)      1,825,418


Cash at beginning of period                        10,585,211       8,850,144
                                               ---------------  --------------
Cash at end of period                              $9,929,023     $10,675,561
                                               ===============  ==============

See accompanying notes to financial statements.
                                               UNAUDITED
</TABLE>





                             IDS MANAGED FUTURES II, L.P.

                            NOTES TO FINANCIAL STATEMENTS

                                  September 30, 1996


          (1)  GENERAL INFORMATION AND SUMMARY

               IDS Managed Futures II, L.P. (the "Partnership") is a
          limited partnership organized on April 21, 1987 under the
          Delaware Revised Uniform Limited Partnership Act.  The
          Partnership was formed to speculatively trade commodity
          interests, including futures contracts, forward contracts,
          physical commodities and related options thereon pursuant to the
          trading instructions of independent trading advisors.  The
          General Partners of the Partnership are CIS Investments, Inc.
          ("CISI") and IDS Futures Corporation ("IDS Futures")
          (collectively, the "General Partners").  The General Partners are
          registered commodity pool operators under the Commodity Exchange
          Act, as amended, and are responsible for administering the
          business and affairs of the Partnership exclusive of trading
          decisions.  CISI is an affiliate of Cargill Investor Services,
          Inc. ("CIS"), the clearing broker for the Partnership.  IDS
          Futures is an affiliate of American Express Financial Advisors
          Inc. ("AXP Advisors"), formerly  IDS Financial Services Inc.,
          which acts as the Partnership's introducing broker and selling
          agent.   

               Units of limited partnership interest ("Units") were offered
          by AXP Advisors commencing July 14, 1987 through December 31,
          1988.  The total amount of the offering was $40,000,000.  There
          is no definite number of Units authorized for the Partnership
          because investors affiliated with the Selling Agent of the
          Partnership were not required to pay selling commissions.  As of
          December 31, 1988, 60,127.14 Units representing a total
          investment of $14,983,249 had been sold and accepted into the
          Partnership (excluding 627.95 Units purchased by the General
          Partners for $150,110).  A final group of investors purchasing
          Units worth $423,750 between December 20, 1988 and December 31,
          1988 were admitted into the Partnership on January 31, 1989, at a
          Net Asset Value of $255.27.  The General Partners also purchased
          an additional $3,960 of Units on January 31, 1989.

               No redemptions are permitted by a subscriber during the
          first six months after he or she has been admitted to the
          Partnership.  Thereafter, a Limited Partner may cause any or all
          of his or her Units to be redeemed by the Partnership effective
          as of the last trading day of any month of the Partnership based
          on the Net Asset Value per Unit on ten days written notice to the
          General Partners.  There are no additional charges to the
          investors at redemption.  The General Partners may declare
          additional redemption dates upon notice to the Limited Partners. 
          Payment will be made within ten business days of the effective
          date of the redemption.  The Partnership's Limited Partnership
          Agreement contains a full description of redemption and
          distribution procedures.

               The Partnership shall be terminated on December 31, 2007 if
          none of the following occur prior to that date: (1) investors
          holding more than 50 percent of the outstanding Units notify the
          General Partners to dissolve the Partnership as of a specific
          date;  (2) withdrawal, removal, insolvency, bankruptcy, legal
          disability or dissolution of the General Partners of the
          Partnership;  (3) bankruptcy or insolvency of the Partnership;
          (4) decrease in the net asset value to less than $1,500,000; (5)
          the Partnership is declared unlawful, or (6) the net asset value
          per Unit declines to less than $125 per Unit and the General
          Partners elect to withdraw from the Partnership.

          (2)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

               The accounting and reporting policies of the Partnership
          conform to generally accepted accounting principles and to
          general practices within the commodities industry.  The following
          is a description of the more significant of those policies which
          the Partnership follows in preparing its financial statements.

          Financial Accounting Standards Board ("FASB") Interpretation
          No. 39 Reporting

               Reporting in accordance with FASB Interpretation No. 39
          ("FIN 39") is not applicable to the Partnership and the
          provisions of FIN 39 do not have any effect on the Partnership's
          financial statements.  

          Revenue Recognition

               Commodity futures contracts, forward contracts, physical
          commodities and related options are recorded on the trade date. 
          All such transactions are reported on an identified cost basis. 
          Realized gains and losses are determined by comparing the
          purchase price to the sales price when the trades are offset. 
          Unrealized gains and losses reflected in the statements of
          financial condition represent the difference between original
          contract amount and market value (as determined by exchange
          settlement prices for futures contracts and related options and
          cash dealer prices at a predetermined time for forward contracts,
          physical commodities and their related options) as of the last
          business day of the quarter.

               The Partnership earns interest on 100 percent of the
          Partnership's average monthly cash balance on deposit with the
          Clearing Broker at a rate equal to 80 percent of the average
          90-day Treasury bill rate for U.S. Treasury bills issued during
          that month.
               
          Commissions

               Brokerage commissions, National Futures Association fees,
          and clearing and exchange fees are accrued on a round-turn basis
          on open commodity futures contracts.  The Partnership pays
          commissions on trades executed on its behalf at a rate of $58.75
          per round turn contract to CIS which in turn reallocates $37.25
          per round turn contract to AXP Advisors, an affiliate of IDS
          Futures. 

          Foreign Currency Transactions

               Trading accounts on foreign currency denominations are
          susceptible to both movements on underlying contract markets as
          well as fluctuation in currency rates.  Foreign currencies are
          translated into U.S. dollars for closed positions at an average
          exchange rate for the quarter while quarter-end balances are
          translated at the quarter-end currency rates.  The impact of the
          translation is reflected in the statement of operations.

          Statements of Cash Flow

               For purposes of the statements of cash flows, cash
          represents cash on deposit with the Clearing Broker in commodity
          futures trading accounts.   
          
          (3)  FEES

               Management fees are accrued and paid monthly, and incentive
          fees are accrued monthly and paid quarterly.  Trading decisions
          for the period of these financial statements were made by John W.
          Henry & Company, Inc. ("JWH") and Sabre Fund Management Limited
          ("Sabre") the Partnership's Commodity Trading Advisors ("CTAs").  
          Pursuant to an agreement between the Partnership and JWH,  JWH
          receives 1/3 of 1% of the month-end net asset value of the
          Partnership under its management.  Pursuant to an agreement
          between the Partnership and Sabre dated December 26, 1995 and
          effective January 1, 1996, Sabre's monthly management fee was
          reduced from 1/3 of 1% to 1/6 of 1% of the Partnership's Net
          Asset Value subject to Sabre's trading performance.  This
          reduction in management fees will continue until such time that
          the cumulative trading performance of Sabre reaches 40%.  The
          Partnership pays each Advisor a quarterly incentive fee of 15% of
          trading profits achieved on the NAV of the Partnership allocated
          by the General Partners to such Advisor's management.
          
          (4)  INCOME TAXES

               No provision for Federal Income Taxes has been made in the
          accompanying financial statements as each partner is responsible
          for reporting income (loss) based on the pro-rata share of the
          profits or losses of the Partnership.  The Partnership is
          responsible for the Illinois Personal Property and Income Tax
          based on the operating results of the Partnership.  Such tax
          amounted to $6,638 and $31,842 for the periods ended September
          30, 1996 and September 30, 1995, respectively, and is included in
          operating expenses in the Statements of Operations.

          (5)  FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK 

               The Partnership was formed to speculatively trade Commodity
          Interests.  It has commodity transactions and all of its cash on
          deposit at its Clearing Broker at all times.  In the event that
          volatility of trading of other customers of the Clearing Broker
          impaired the ability of the Clearing Broker to satisfy its
          obligations to the Partnership, the Partnership would be exposed
          to off-balance sheet risk.  Such risk is defined in Statement of
          Financial Accounting Standards No. 105 ("SFAS 105") as a credit
          risk.  To mitigate this risk, the Clearing Broker, pursuant to
          the mandates of the Commodity Exchange Act, is required to
          maintain funds deposited by customers relating to futures
          contracts in regulated commodities in separate bank accounts
          which are designated as segregated customers' accounts.  In
          addition, the Clearing Broker has set aside funds deposited by
          customers relating to foreign futures and options in separate
          bank accounts which are designated as customer secured accounts. 
          Lastly, the Clearing Broker is subject to the Securities and
          Exchange Commission's Uniform Net Capital Rule which requires
          the maintenance of minimum net capital at least equal to 4% of
          the funds required to be segregated pursuant to the Commodity
          Exchange Act.  The Clearing Broker has controls in place to make
          certain that all customers maintain adequate margin deposits for
          the positions which they maintain at the Clearing Broker.  Such
          procedures should protect the Partnership from the off-balance
          sheet risk as mentioned earlier.  The Clearing Broker does not
          engage in proprietary trading and thus has no direct market
          exposure.

               The counterparty of the Partnership for futures contracts
          traded in the United States and most non-U.S. exchanges on which
          the Partnership trades is the Clearing House associated with the
          exchange.  In general, Clearing Houses are backed by the
          membership and will act in the event of non-performance by one of
          its members or one of the members' customers and as such should
          significantly reduce this credit risk.  In the cases where the
          Partnership trades on exchanges on which the Clearing House is
          not backed by the membership, the sole recourse of the
          Partnership for nonperformance will be the Clearing House.

               The Partnership holds futures and futures options positions
          on the various exchanges throughout the world.  The Partnership
          does not trade over the counter contracts.   As defined by SFAS
          105, futures positions are classified as financial instruments. 
          SFAS 105 requires that the Partnership disclose the market risk
          of loss from all of its financial instruments.  Market risk is
          defined as the possibility that future changes in market prices
          may make a financial instrument less valuable or more onerous. 
          If the markets should move against all of the futures positions
          held by the Partnership at the same time, and if the markets
          moved such that the Trading Advisors were unable to offset the
          futures positions of the Partnership, the Partnership could lose
          all of its assets and the partners would realize a 100% loss. 
          The Partnership has contracts with two CTAs who make the trading
          decisions.  One of the CTAs trades a program diversified among
          all commodity groups, while the other is diversified among the
          various futures contracts in the financials and metals group.
          Both CTAs trade on U.S. and non-U.S. exchanges.  Such
          diversification should greatly reduce this market risk.  Cash
          was on deposit with the Clearing Broker in each time period of
          the financial statements which exceeded the cash requirements of
          the Commodity Interests of the Partnership.
                    
               The following chart discloses the dollar amount of the
          unrealized gain or loss on open contracts related to exchange
          traded contracts for the Partnership as of September 30, 1996:


                 COMMODITY GROUP              UNREALIZED GAIN/(LOSS)

          AGRICULTURAL COMMODITIES                    20,783

          FOREIGN CURRENCIES                         183,093 

          STOCK INDICES                               12,844 

          ENERGIES                                         0 

          METALS                                     157,921 

          INTEREST RATE INSTRUMENTS                  712,166 

             TOTAL                                 1,086,807


               The range of maturity dates of these exchange traded open
          contracts is October of 1996 through June of 1997.  The average
          open trade equity for the period of January 1, 1996 to September
          30, 1996 was $723,402.

               The margin requirement at September 30, 1996 was $1,731,398.
          To meet this requirement, the Partnership had on deposit with the
          Clearing Broker $8,620,682 in segregated funds and $2,395,148 in
          secured funds.

          (6)  FINANCIAL STATEMENT PREPARATION

               The interim financial statements are unaudited but reflect
          all adjustments that are, in the opinion of management, necessary
          to a fair statement of the results for the interim periods
          presented.  These adjustments consist primarily of normal
          recurring accruals.

               The results of operations for interim periods are not
          necessarily indicative of the operating results to be expected
          for the fiscal year.


             Item 2.  Management's Discussion and Analysis of Financial 
                      Condition and  Results of Operation 


                       Fiscal Quarter ended September 30, 1996

               The Partnership recorded a gain of $254,821 or $11.97 per
          Unit for the third quarter of 1996.  This compares to a loss of
          $149,375 or $6.53 per Unit for the third quarter of 1995.  For
          the nine month period ended September 30, 1996, the Partnership
          posted a gain of $438,406 or $20.27 per Unit, which compares to a
          profit of $2,153,682 or $88.54 per Unit for nine month period
          ended September 30, 1995.   

               The first month of the quarter saw losses in stock indices,
          currencies and metals. Favorable positions in global interest
          rates, stock indices and metals generated profits in the second
          and third months of the quarter.  Overall, the third quarter
          ended positively for the Partnership's accounts managed by John
          W. Henry & Company, Inc. and Sabre Fund Management Limited.  At
          September 30, 1996, John W. Henry & Company, Inc. was managing
          80.7% of the Partnership's assets and Sabre Fund Management
          Limited was managing 19.3% of the Partnership's assets.

               In July, sharp declines in the U.S. stock market weakened
          the dollar against other key currencies as some investors fled
          U.S. assets in search of opportunities overseas.  In foreign
          exchange, the U.S. dollar lost ground against the German mark and
          the Japanese yen as the prospect for a hike in U.S. interest
          rates seemed more unlikely.  Positions in  gold and silver were
          unprofitable as were positions in global stock indices.  In the
          commodity markets, changing weather conditions and threats of
          further cancellations of major grain export contracts by China
          unsettled agricultural markets.  The Partnership recorded a loss
          of $176,053 or $8.16 per Unit in July.

               The Japanese yen, German mark and U.S. dollar fluctuated
          throughout the month of August.  Market participants in the
          financial markets remained cautious, with few willing to take
          positions prior to key central bank policy meetings and economic
          reports slated at month end.  The German Bundesbank's decision to
          sharply lower a key interest rate surprised the market and
          sparked a European bond rally.  Hurricane activity, which posed a
          threat to key refineries in the Caribbean and the Gulf of Mexico,
          added to upward price pressures in the energy markets.  Prices of
          both crude oil and heating oil climbed to four month highs while
          agricultural commodity markets remained trendless.  The
          Partnership recorded a profit of $87,467 or $4.08 per Unit in
          August.

               In September, the U.S. dollar reached a ten-week high
          against the Japanese yen, the German mark and the Swiss franc. 
          The energy markets continued to benefit from upward price
          pressures in crude oil and derivative products, reflecting low
          inventories worldwide and renewed tension in the Middle East. 
          Overseas investors followed closely the budget reports of key
          European nations seeking to meet Maastricht Treaty criteria for
          membership in the EMU.  Convinced of the commitment
          of these nations to the EMU and of the concurrent necessity for
          low European interest rates to ensure economic growth, foreign
          investors turned to higher yielding U.S. dollar-denominated
          assets.  Foreign central banks were heavy buyers of U.S. bonds. 
          The Partnership recorded a profit of $343,407 or $16.05 per Unit
          in September.

               Effective July 23, 1996 Peter Swete resigned as a Director
          of Sabre Fund Management Limited ("Sabre"), one of the commodity
          trading advisors of the Partnership and Simon Wilson, Tushar
          Patel and Zbigniew Hermaszewski were all appointed as Directors
          of Sabre.  Effective September 16, 1996 Colin Barrow was
          appointed as a Director of both Sabre and its parent company,
          Sabre Limited .  On September 12, 1996 changes occurred in the
          ownership of Sabre Limited which resulted in the following new
          ownership interests:  Robin Edwards, 25.36%; Walbrook Trustees
          (Jersey) Ltd., 16.14%; and Firefirst Solutions Ltd., 58.50%
          (which is controlled by Robin Edwards).  Further effective as of
          October 30, 1996, the ownership of Sabre Limited was changed as
          follows:  Robin Edwards, 19%; Walbrook Trustees (Jersey) Ltd.,
          12.1%; Firefirst Solutions Ltd., 43.9%; Colin Barrow, 2.5%;
          Angelia Barrow, 2.5%; and Credit Suisse Fides Trust Ltd., 20%.    
          
               Wendell Halvorson was appointed as President and a Director
          of IDS Futures Corporation on July 23, 1996, replacing Janis E.
          Miller, who resigned as President and a Director of IDS Futures
          Corporation on March 29, 1996.

               In September 1996, John W. Henry & Company, Inc. ("JWH"),
          one of the commodity trading advisors of the Partnership, was
          named as a co-defendant in class action lawsuits brought in the
          California Superior Court, Los Angeles County and the New York
          Supreme Court, New York County.  The actions, which seek
          unspecified damages, purport to be brought on behalf of investors
          in certain Dean Witter, Discover & Co. commodity pools, some of
          which are advised by JWH, and are primarily directed at Dean
          Witter's alleged fraudulent selling practices in connection with
          the marketing of those pools.  JWH is essentially alleged to have
          aided and abetted or directly participated with Dean Witter in
          those practices.  JWH believes the allegations against it are
          without merit and intends to contest these allegations.
         
               During the quarter, investors redeemed a total of 261.95
          Units.  At the end of the quarter there were 21,303.38 Units
          outstanding (including 644.45 Units owned by the General
          Partners).

               During the fiscal quarter ended September 30, 1996, the
          Partnership had no material credit exposure to a counterparty
          which is a foreign commodities exchange.

               The Partnership currently only trades on recognized global
          futures exchanges.  In the event the Partnership begins trading
          over the counter contracts, any credit exposure to a counterparty
          which exceeds 10% of the Partnership's total assets will be
          disclosed.

               See Footnote 5 of the Financial Statements for procedures
          established by the General Partners to monitor and minimize
          market and credit risks for the Partnership.  In addition to the
          procedures set out in Footnote 5, the General Partners review on
          a daily basis reports of the Partnership's performance, including
          monitoring of the daily net asset value of the Partnership.  The
          General Partners also review the financial situation of the
          Partnership's Clearing Broker on a monthly basis.  The General
          Partners rely on the policies of the Clearing Broker to monitor
          specific credit risks.  The Clearing Broker does not engage in
          proprietary trading and thus has no direct market exposure which
          provides the General Partners assurance that the Partnership will
          not suffer trading losses through the Clearing Broker.   
                
                  

                       Fiscal Quarter ended September 30, 1995

               The Partnership recorded a loss of $149,375 or $6.52 per
          Unit for the third quarter of 1995.  The first and third months
          of the quarter posted losses due in part to trend reversals in
          several key markets and difficult foreign exchange markets,
          respectively.  The second month of the quarter posted a gain
          primarily as a result of profitable foreign exchange markets. 
          Overall, the third quarter ended negatively for the Partnership's
          accounts managed by John W. Henry & Company, Inc. and Sabre Fund
          Management Limited.  At September 30, 1995, John W. Henry &
          Company, Inc. was managing 81% of the Partnership's assets and
          Sabre Fund Management Limited was managing 19% of the
          Partnership's assets.

               During July, the financial sector was influenced by
          worldwide interest rate fluctuations.  The U.S. saw the first
          interest rate reduction in nearly three years.  Japan and certain
          European countries also took action to dampen rates, which, along
          with the U.S. initiative, generated improved global market
          sentiment.  U.S. interest rate trading suffered losses, as did
          positions in global stock indexes.  The Partnership recorded a
          loss of $64,997 or $2.80 per Unit in July.

               The weakened Japanese yen dominated the trading environment
          in August.  In the wake of Japan's new regulatory package
          designed to encourage overseas investing, the yen plummeted
          against most major currencies.  The U.S. dollar clearly benefited
          from this action, soaring to its highest level against the
          Japanese yen in six months.  Traditional commodity trading was
          poor overall.  The Partnership recorded a profit of $92,516 or
          $4.01 per Unit in August.

               In the foreign exchange markets, the U.S. dollar continued
          to rise until the last week of September, when it nose-dived four
          to five percent against other currencies.  The dollar's swift
          decline followed a negative U.S. trade deficit report and lack of
          continued dollar support from the Bank of Japan.  Trading in
          interest rates, particularly Japanese Government bonds, also led
          to small losses.  Crude oil positions incurred substantial losses
          for the month, and trading in copper and aluminum was
          unprofitable.  As a result, the Partnership recorded a loss of
          $176,894 or $7.73 per Unit in September.

               During the quarter investors redeemed a total of 449.31
          Units.  At the end of the quarter there were 22,737.74 Units
          outstanding (including 644.45 Units owned by the General
          Partners).  

               During the fiscal quarter ended September 30, 1995, the
          Partnership had no material credit exposure to a counterparty
          which is a foreign commodities exchange.



                          Fiscal Quarter ended June 30, 1996

               The Partnership recorded a gain of $189,919 or $8.65 per
          Unit for the second quarter of 1996.  This compares to a profit
          of $494,432 or $20.62 per Unit for the second quarter of 1995. 

               Favorable positions in global currency and physical
          commodity markets generated profits in the first and third months
          of the quarter.  The second month of the quarter saw losses in
          metals and global interest rates.  Overall, the second quarter
          ended positively for the Partnership's accounts managed by John
          W. Henry & Company, Inc. and Sabre Fund Management Limited.  At
          June 30, 1996, John W. Henry & Company, Inc. was managing 80.7%
          of the Partnership's assets and Sabre Fund Management Limited was
          managing 19.3% of the Partnership's assets.

               In April, crude oil prices continued to surge upwards as
          refiners pushed to replenish record-low inventory levels.  In the
          agricultural sector, prices of wheat, corn and soybeans soared as
          export demand remained strong.  The currency markets saw
          relatively high U.S. bond yields which attracted investors to the
          U.S. dollar, thus strengthening the dollar against the German
          mark and Swiss franc.  The Partnership recorded a profit of
          $309,559 or $14.02 per Unit in April.

               In May, the grain and oilseed markets were volatile as
          concerns over winter crops were replaced by reports of poor
          planting conditions for spring crops.  Crude oil prices succumbed
          to political pressures and the expected impact on world oil
          supplies of the long-anticipated U.N./Iraq oil agreement.  In the
          currency markets, the British pound declined to a two-year low
          against the U.S. dollar early in the month, but rallied back by
          the end of the month well ahead of the dollar as well as the
          German mark.  The Partnership recorded a loss of $271,870 or
          $12.37 per Unit in May.

               In June, the metals markets were impacted by repercussions
          from the Sumitomo copper trading losses and by an increase in the
          world supply of gold; the result of selling by central banks. 
          Crude oil prices reflected continued inventory shortages and the
          renewal of tension in the Middle East.  The U.S. dollar reached a
          28-month high against the Japanese yen early in the month, but
          ended lower at month's end as investors turned to higher yielding
          European currencies.  The Partnership recorded a profit of
          $152,230 or $7.00 per Unit in June.

               During the quarter, investors redeemed a total of 516.07
          Units.  At the end of the quarter there were 21,565.36 Units
          outstanding (including 644.45 Units owned by the General
          Partners).

               During the fiscal quarter ended June 30, 1996, the
          Partnership had no material credit exposure to a counterparty
          which is a foreign commodities exchange.



                      Fiscal Quarter ended June 30, 1995

               The Partnership recorded a profit of $494,432 or $20.62 per
          Unit for the second quarter of 1995.  The first month of the
          quarter was profitable with the strongest gains derived from
          foreign currency markets.  The next two months saw losses in
          interest rates and foreign exchange.  Overall, the second quarter
          ended positively for the Partnership's accounts managed by John
          W. Henry & Company, Inc. and Sabre Fund Management Limited.

               The decline of the U.S. dollar continued in April, with the
          U.S. dollar falling 19% against the Japanese yen, 15% against the
          Swiss franc and 13% against the German mark.  Therefore,
          positions in the foreign currency and global interest rate
          markets, including those of the United States, the United
          Kingdom, France and Australia resulted in strong gains for the
          Partnership.  The Partnership recorded a profit of $535,107 or
          $22.46 per Unit in April.

               The fixed income markets in the U.S. rose steadily in May. 
          Behind this move were beliefs that the U.S. economy was slowing,
          inflation remained in check, and the federal reserve was unlikely
          to raise interest rates again and would possibly lower them in
          the next few months.  Positions in U.S. and international fixed
          income markets generated strong gains during the month, but
          performance results in foreign exchange partially offset these
          gains.  As a result, the Partnership recorded a profit of
          $207,190 or $8.76 per Unit in May.

               The financial sector in the month of June was influenced by
          economic and political uncertainties in several major countries,
          specifically the U.S., Japan, Great Britain and Germany.  The
          global marketplace was also confronted with the mid-month G-7
          meeting in Nova Scotia, the perception that the Bundesbank would
          lower the discount and Lombard rates, and the continued
          U.S.-Japan trade dispute.  The failing Japanese economy and
          problems in the banking sector contributed to the decline of the
          Nikkei, which fell below 15,000 for the first time since August
          1992.  As a result of these uncertainties, the Partnership
          recording a loss of $247,865 or $10.60 per Unit in June.

               During the quarter investors redeemed a total of 639.79
          Units.  At the end of the quarter there were 23,187.07 Units
          outstanding (including 644.45 Units owned by the General
          Partners).  

         
                         Fiscal Quarter ended March 31, 1996

               The Partnership recorded a loss of $6,334 or $0.35 per Unit
          for the first quarter of 1996. The first month experienced gains
          primarily as a result of profits in foreign exchange.  The next
          two months saw losses due to unprofitable currency positions and
          losses in trading of stock indices and metals.  The first quarter
          ended negatively for the Partnership's accounts managed by John
          W. Henry & Company, Inc. and Sabre Fund Management Limited.  At
          March 31, 1996, John W. Henry & Company, Inc. was managing 80% of
          the Partnership's assets and Sabre Fund Management Limited was
          managing 20% of the Partnership's assets.

               In January, the primary influence on markets was the U.S.
          dollar, which rose against most currencies and hit its highest
          level in two years against the Japanese yen.  Trading in foreign
          exchange generated the majority of profits.  Trading in stock
          indexes was slightly profitable.  The Partnership recorded a
          profit of $529,633 or $23.51 per Unit in January.

               In February, the U.S. dollar lost ground against the
          Japanese yen, British pound, Swiss franc and German mark,
          resulting in the Partnership giving back some of the profits
          earned in January.  The largest decline occurred in Japanese yen
          positions.  In the metals markets, subsiding inflation fears and
          weakening demand pushed gold prices beneath the $400 threshold
          reached only a month before.  Trading in interest rates and stock
          indexes was also unprofitable.  The Partnership recorded a loss
          of $514,051 or $22.88 per Unit in February.

               In March, trading was volatile, reflecting investors'
          confusion over the direction of the U.S. economy.   In addition,
          political tensions between China and Taiwan and "Mad Cow" disease
          in Britain further added to economic uncertainties.  Elections in
          Australia, which put an end to 13 years of Labor Party rule,
          boosted the Australian dollar to levels not seen in over 10
          months.  Trading in stock indices and metals was unprofitable.  
          As a result, the Partnership recorded a loss of $21,916 or $0.99
          per Unit in March.

               During the quarter, investors redeemed a total of 447.35
          Units.  At the end of the quarter there were 22,081.44 Units
          outstanding (including 644.45 Units owned by the General
          Partners).

               During the fiscal quarter ended March 31, 1996, the
          Partnership had no material credit exposure to a counterparty
          which is a foreign commodities exchange.
        


                        Fiscal Quarter ended March 31, 1995

               The Partnership recorded a profit of $1,808,624 or $74.45
          per Unit for the first quarter of 1995.  The first month of the
          year was difficult due in part to losses in global interest rates
          and foreign exchange.  However, the next two months saw
          profitable trends in the financial markets.  As a result, the
          first quarter ended positively for the Partnership's accounts
          managed by John W. Henry & Company, Inc. and Sabre Fund
          Management Limited.

               In January the financial markets were impacted by
          speculation regarding a possible Federal Reserve monetary
          tightening as a further effort to moderate domestic economic
          growth and inflation.  The continued uncertainty regarding the
          financial crisis in Mexico and possible ramifications of the
          earthquake in Kobe, Japan also weighed on the financial markets. 
          Therefore, the Partnership recorded a loss of $288,704 or $11.72
          per Unit in January.

               During the month of February, global political and financial
          events, including the sudden demise of the British merchant bank,
          Barings PLC, sent stock prices falling around the world and
          investors rushing to safety in German marks and U.S. bonds.  The
          German mark benefited substantially from the uncertain state of
          many world economies and gained steadily versus the U.S. and
          other European currencies.  There was a global lack of support
          for the U.S. dollar as it declined against many European
          currencies and sank to new postwar lows versus Japanese yen. 
          Long positions in foreign exchange and favorable positions in the
          Japanese markets generated substantial gains for the Partnership. 
          As a result, the Partnership recorded a profit of $982,093 or
          $40.20 per Unit in February.

               The decline in value of the U.S. dollar gained momentum and
          accelerated in March.  Market participants ignored efforts by
          central bankers to support the dollar, including an unanticipated
          move by the German Bundesbank to lower short term rates late in
          March.  By month end, the dollar reached yet another postwar low. 
          Positive performance during the month was dominated by strong
          trends in foreign exchange.     Gains in currency positions,
          global interest rates and stock indexes resulted in the
          Partnership recording a profit of $1,115,235 or $45.97 per Unit
          in March.
        
               During the quarter, investors redeemed a total of 800.98
          Units.  At the end of the quarter there were 23,826.88 Units
          outstanding (including 644.45 Units owned by the General
          Partners).

        

                             Part II.  OTHER INFORMATION

               
          Item 1.  Legal Proceedings

                   None

          Item 2.  Changes in Securities

                   None

          Item 3.  Defaults Upon Senior Securities

                   None

          Item 4.  Submission of Matters to a vote of Security Holders

                   None

          Item 5.  Other Information

                   None

          Item 6.  Exhibits and Reports on Form 8-K

                   a)  Exhibits

                       None

                   b)  Reports on Form 8-K

                       None




                                      SIGNATURES
     

               Pursuant to the requirements of the Securities Exchange Act
          of 1934, the registrant has duly caused this report to be signed
          on its behalf by the undersigned and thereunto duly authorized.



          Date: November 14, 1996          IDS MANAGED FUTURES II, L.P.

                                                                         
                                           By: CIS Investments, Inc.
                                               One of its General Partners




          Date:  November 14, 1996         By:/s/ Donald J. Zyck           
                                                  Donald J. Zyck,      
                                                  Secretary & Treasurer

                                                                       
                                          (Duly authorized Officer of the       
                                           General Partner and the Principal
                                           Financial Officer of the General  
                                           Partner)