PAGE
IDS
Growth
Fund
1995 semiannual report
(Picture of icon: flower)
The goal of IDS Growth Fund, Inc. is long-term growth of capital.
The fund invests primarily in common stocks and securities convertible
into common stocks.
Distributed by
American Express
Financial Advisors Inc.
<PAGE>
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Going for growth
In the long run, a company's stock price usually reflects its business
fortunes. Therefore, if a company thrives, its stock tends to follow suit.
That's why many long-term investors, including Growth Fund, focus on growth
stocks those of companies that enjoy rising sales and profits.
While there will be interruptions along the way, patient investors
look forward to sharing in that same prosperity.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 17
Directors and officers 20
IDS mutual funds 21
<PAGE>
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To our shareholders
(Picture of William R. Pearce)
William R. Pearce
President of the fund
(Picture of Mitzi Malevich)
Mitzi Malevich
Portfolio manager
From the president
All of the funds in the IDS MUTUAL FUND GROUP held shareholder meetings on
Nov. 9, 1994. The meetings, which were well-attended, approved all of the
proposals advanced by management. Among the proposals were:
- - The election of directors and the selection of KPMG Peat Marwick LLP as
independent auditors for each of the funds in the group.
- - A new investment management agreement that will become effective
for each fund when it begins offering multiple classes of shares,
now planned to occur in March, 1995.
- - A change in investment policy that will permit the fund to adopt a
master/feeder structure if and when the board of each fund determines that it
is in the best interest of shareholders. - And, finally, a change with
respect to the number of "fundamental investment polices" that allows
the board to modify them should it deem appropriate.
No other business was presented at the meeting, which was concluded by
a report to shareholders from the American Express Financial
Corporation Investment Department.
Thanks to all of you for your effort in reviewing the proxy material and
voting your proxies.
William R. Pearce
<PAGE>
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From the portfolio manager
After losing considerable ground early in 1994, growth stocks mounted
periodic comebacks in the second half of the year. The fund
took full advantage of the improving environment, posting a return for the
August 1994 through January 1995 period that was well above
that of the average for growth mutual funds. During that time, the fund's
advance also exceeded that of the broad stock market, as measured by the
Standard & Poor's 500 Stock Index an unmanaged group of stocks commonly used
to determine how stocks in general are performing. (As detailed in the
accompanying table, much of the return for the past six months came in the
form of a capital gain, which was declared last December and reduced
the fund's net asset value by a like amount at that time.)
Continuing their pattern of recent years, growth stocks were volatile
during the past six months, as rising interest rates and the strength of
corporate profits produced a tug-of-war effect on the market as a whole.
However, for this fund at least, the upturns outnumbered the downturns.
A perfect case in point was last summer, when a sharp decline in June was
followed by a July/August surge that saw the fund gain more than 11%.
It's that kind of rapid advance that points up the importance of taking a
patient approach to investing and being willing to ride out the periodic
dips in the road.
Selectivity pays off
The key to positive results during the past period was being invested in the
right sectors within the growth stock group. Among the best-performing
sectors were technology, telecommunications and health care, as well as
large consumer-goods companies that derive a substantial portion of their
business from foreign markets. To the fund's benefit, much of the portfolio
was concentrated in those areas. Looking at specific stocks in the portfolio,
Microsoft, Coca-Cola, Motorola and Home Depot were among those registering
good gains.
As for changes to the portfolio structure, we gradually reduced our holdings
of foreign stocks from about 15% last summer to about 6% at period-end.
Much of that reduction centered on Mexico, where we sold virtually all of
our stocks once the peso was devalued and thereby avoided much of the
subsequent downturn in that market. Aside from that, we essentially stayed
with the same mix of holdings during the six months.
A better year for growth stocks?
As is usually the case, the trend of long-term interest rates in the U.S.
probably will play a major role in how the stock market performs this year.
When it becomes clear that rates have stopped their upward trend, we believe
stocks should do well, or at least improve on their 1994 performance.
Growth stocks, which have been lackluster the past couple of years, appear
to be in an excellent position to advance, particularly if economic growth
slows down. We think the portfolio remains well-positioned for such an
environment and, barring major developments, plan to stay with the
successful strategies of recent months. This is in keeping with the fund's
buy-and-hold investment approach, which we believe creates the best
opportunity to take advantage of stock market advances.
Mitzi Malevich
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6-month performance
(All figures per share)
Net asset value (NAV)
Jan. 31, 1995 $ 16.60
July 31, 1994 $ 17.39
Decrease $ (0.79)
Distributions
Aug. 1, 1994 - Jan. 31, 1995
From income $ 0.04
From capital gains $ 1.51
Total distributions $ 1.55
Total return* +4.4%
* If you purchased shares in the fund during this period, your return also
would have been affected by the sales charge, as described in the prospectus.
<PAGE>
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IDS Growth Fund, Inc.
<TABLE>
<CAPTION>
Your fund's ten largest holdings
Pie Chart: The ten holdings listed here make up 26.97% of the fund's net assets
_____________________________________________________________________________________
Percent of Value
(fund's net assets) (as Jan. 31, 1995)
_____________________________________________________________________________________
<S> <C> <C>
Coca-Cola 3.10% $31,500,000
The world's largest producer and distributor of soft drinks, concentrates
and syrups.
HEALTHSOUTH Rehab 2.99 30,400,000
A fast-growing chain of hospitals and outpatient centers. The company
specializes in patient rehabilitation that enables patients to return to a
normal lifestyle as soon as possible after accidents, surgery or illness.
Tellabs 2.93 29,850,000
Tellabs designs, manufactures and markets a broad range of products and
equipment for use by telephone companies, the Bell System, specialized
common carriers and other providers of telecommunication services.
Home Depot 2.75 28,050,000
Home Depot sells a broad range of building materials and home-improvement
products via retail warehouse stores. The company focuses on the
do-it-yourselfer and home remodeler.
Royal Dutch Petroleum 2.75 27,968,750
Royal Dutch Petroleum Co., which includes Royal Dutch (the Dutch version) and
Shell Transport (the English version) is a major oil company.
Microsoft 2.63 26,718,750
Microsoft has a leading franchise in microcomputer operating systems, DOS,
Windows and Windows NT.
Oracle Systems 2.51 25,575,000
One of the largest independent vendors of database-management software. Oracle
offers a wide variety of new products, enhancements and applications software,
supported by excellent service.
Walt Disney 2.50 25,437,500
Disney is one of the premier entertainment companies and has two core businesses:
filmed entertainment and theme parks, and consumer products.
First Financial Management 2.43 24,700,000
A leading provider of information services, including processing credit card
transactions and health-care claims.
United Healthcare 2.38 24,250,000
United Healthcare is a national leader in health-care cost management and
is the largest publicly held operator of health maintenance organizations.
</TABLE>
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Financial statements
Statement of assets and liabilities
IDS Growth Fund, Inc.
Jan. 31, 1995
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $798,140,001) $1,044,210,492
Cash in bank on demand deposit 3,449,625
Receivable for investment securities sold 1,411,952
Dividends and accrued interest receivable 592,642
U.S. government securities held as collateral (Note 4) 3,773,711
_____________________________________________________________________________________________________________
Total assets 1,053,438,422
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Payable for investment securities purchased 16,239,052
Payable upon return of securities loaned (Note 4) 18,764,711
Accrued investment management and services fee 555,778
Accrued distribution fee 45,174
Accrued transfer agency fee 112,532
Other accrued expenses 100,048
_____________________________________________________________________________________________________________
Total liabilities 35,817,295
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,017,621,127
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 61,296,645 shares $ 612,966
Additional paid-in capital 773,814,246
Excess of distributions over net investment income (146,152)
Accumulated net realized loss (Note 1) (2,730,424)
Unrealized appreciation 246,070,491
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $1,017,621,127
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 16.60
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
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Financial statements
Statement of operations
IDS Growth Fund, Inc.
Six months ended Jan. 31, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Dividends (net of foreign taxes withheld of $65,655) $ 4,186,915
Interest 1,244,935
_____________________________________________________________________________________________________________
Total income 5,431,850
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 3,291,730
Distribution fee 255,168
Transfer agency fee 635,754
Compensation of directors 6,338
Compensation of officers 2,718
Custodian fees 48,065
Postage 80,898
Registration fees 27,219
Reports to shareholders 31,732
Audit fees 11,000
Administrative 6,261
Other 8,828
_____________________________________________________________________________________________________________
Total expenses 4,405,711
_____________________________________________________________________________________________________________
Investment income -- net 1,026,139
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions (Note 3) 6,867,484
Net change in unrealized appreciation or depreciation 33,418,617
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 40,286,101
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $41,312,240
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
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Financial statements
Statements of changes in net assets
IDS Growth Fund, Inc.
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________
Operations and distributions
Jan. 31, 1995 July 31, 1994
Six months ended Year ended
___________________________________________________________________________________________________________________
(Unaudited)
<S> <C> <C>
Investment income -- net $ 1,026,139 $ 1,053,685
Net realized gain on investments and foreign currency 6,867,484 132,940,828
Net change in unrealized appreciation or depreciation 33,418,617 (69,264,677)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 41,312,240 64,729,836
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (2,222,074) (34,025)
Net realized gain (83,810,550) (94,040,848)
_____________________________________________________________________________________________________________
Total distributions (86,032,624) (94,074,873)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
5,379,234 and 5,591,678 shares (Note 2) 95,159,175 100,957,458
Net asset value of 5,080,714 and 5,261,628 shares
issued in reinvestment of distributions 84,355,086 92,378,509
Payments for redemptions of
3,872,255 and 7,981,768 shares (68,796,343) (144,922,563)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
6,587,693 and 2,871,538 shares 110,717,918 48,413,404
____________________________________________________________________________________________________________
Total increase in net assets 65,997,534 19,068,367
Net assets at beginning of period 951,623,593 932,555,226
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$(149,152) and $1,049,783) $1,017,621,127 $951,623,593
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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Notes to financial statements
IDS Growth Fund, Inc.
(Unaudited as to Jan. 31, 1995)
______________________________________________________________________________
1. Summary of significant accounting policies
The fund is registered under the Investment Company
Act of 1940 (as amended) as a diversified, open-end
management investment company. Significant
accounting policies followed by the fund are
summarized below:
Valuation of securities
All securities are valued at the close of each
business day. Securities traded on national
securities exchanges or included in national market
systems are valued at the last quoted sales price;
securities for which market quotations are not
readily available are valued at fair value according
to methods selected in good faith by the board of
directors. Determination of fair value involves,
among other things, reference to market indexes,
matrixes and data from independent brokers.
Short-term securities maturing in more than 60 days
from the valuation date are valued at the market
price or approximate market value based on current
interest rates; those maturing in 60 days or less are
valued at amortized cost.
Options transactions
In order to produce incremental earnings, protect
gains, and facilitate buying and selling of
securities for investment purposes, the fund may buy
or write options traded on any U.S. or foreign
exchange or in the over-the-counter market where the
completion of the obligation is dependent upon the
credit standing of the other party. The fund also may
buy and sell put and call options and write covered
call options on portfolio securities and may write
cash-secured put options. The risk in writing a call
option is that the fund gives up the opportunity of
profit if the market price of the security increases.
The risk in writing a put option is that the fund may
incur a loss if the market price of the security
decreases and the option is exercised. The risk in
buying an option is that the fund pays a premium
whether or not the option is exercised. The fund also
has the additional risk of not being able to enter
into a closing transaction if a liquid secondary
market does not exist.
<PAGE>
Option contracts are valued daily at the closing
prices on their primary exchanges and unrealized
appreciation or depreciation is recorded. The fund
will realize a gain or loss upon expiration or
closing of the option transaction. When an option
is exercised, the proceeds on sales for a written
call option, the purchase cost for a written put
option or the cost of a security for a purchased put
or call option is adjusted by the amount of premium
received or paid.
Futures transactions
In order to gain exposure to or protect itself from
changes in the market, the fund may buy and sell
stock index futures contracts traded on any U.S. or
foreign exchange. The fund also may buy or write put
and call options on these contracts. Risks of
entering into futures contracts and related options
include the possibility that there may be an illiquid
market and that a change in the value of the
contract or option may not correlate with changes
in the value of the underlying securities.
Upon entering into a futures contract, the fund is
required to deposit either cash or securities in an
amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments(variation
margin) are made or received by the fundeach day. The
variation margin payments are equal to the daily
changes in the contract value and arerecorded as
unrealized gains and losses. The fund recognizes a
realized gain or loss when the contractis closed or
expires.
Foreign currency translations and
foreign currency contracts
Securities and other assets and liabilities
denominated in foreign currencies are translated
daily into U.S. dollars at the closing rate of
exchange. Foreign currency amounts related to the
purchase or sale of securities and income and
expenses are translated at the exchange rate on the
transaction date. The effect of changes in foreign
exchange rates on realized and unrealized security
gains or losses is reflected as a component of such
gains or losses. In the statement of operations, net
realized gains or losses from foreign currency
transactions may arise from sales of foreign
currency, closed forward contracts, exchange gains or
losses realized between the trade date and settlement
dates on securities transactions, and other
translation gains or losses on dividend, interest
income and foreign withholding taxes.
<PAGE>
The fund may enter into forward foreign currency
exchange contracts for operational purposes and to
protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the
fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency
exchange rates from an independent pricing service.
The fund is subject to the credit risk that the other
party will not complete the obligations of the
contract.
Federal taxes
Since the fund's policy is to comply with all
sections of the Internal Revenue Code applicable to
regulated investment companies and to distribute all
of its taxable income to shareholders, no provision
for income or excise taxes is required.
Net investment income (loss) and net realized gains
(losses) may differ for financial statement and tax
purposes primarily because of the deferral of losses
on certain futures contracts, the recognition of
certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred
due to "wash sale" transactions. 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.
<PAGE>
Dividends to shareholders
An annual dividend declared and paid at the end of
the calendar year from net investment income is
reinvested in additional shares of the fund at net
asset value or payable in cash. Capital gains, when
available, are distributed along with the income
dividend.
Other
Security transactions are accounted for on the date
securities are purchased or sold. Dividend income is
recognized on the ex-dividend date and interest
income, including level-yield amortization of premium
and discount is accrued daily.
______________________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991, the
fund pays American Express Financial Corporation a
fee for managing its investments, recordkeeping and
other specified services. The fee is a percentage of
the fund's average daily net assets consisting of a
group asset charge in reducing percentages from 0.46%
to 0.32% annually on the combined net assets of all
non-money market funds in the IDS MUTUAL FUND GROUP
and an individual annual asset charge of 0.23% of
average daily net assets. The fee is adjusted upward
or downward by a performance incentive adjustment
based on the fund's average daily net assets over a
rolling 12-month period as measured against the
change in the Lipper Growth Fund Index. The maximum
adjustment is 0.12% of the fund's average daily net
assets after deducting 1% from the performance
difference. If the performance difference is less
than 1%, the adjustment will be zero. The adjustment
decreased the fee by $123,818 for the six months
ended Jan. 31, 1995.
The fund also pays American Express Financial
Corporation a distribution fee at an annual rate of
$6 per shareholder account and a transfer agency fee
at an annual rate of $15 per shareholder account. The
transfer agency fee is reduced by earnings on monies
pending shareholder redemptions.
<PAGE>
American Express Financial Corporation will assume
and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive
applicable state expense limitation.
Sales charges by American Express Financial Advisors
Inc. for distributing fund shares were $1,518,597 for
the six months ended Jan. 31, 1995. The fund also
pays custodian fees to American Express Trust
Company, an affiliate of American Express Financial
Corporation.
The fund has a retirement plan for its independent
directors. Upon retirement, directors receive monthly
payments equal to one-half of the retainer fee for as
many months as they served as directors up to 120
months. There are no death benefits. The plan is not
funded but the fund recognizes the cost of payments
during the time the directors serve on the board.
The retirement plan expense amounted to $4,403 for
the six months ended Jan. 31, 1995.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of
securities (other than short-term obligations)
aggregated $224,401,682 and $211,726,993,
respectively, for the six months ended Jan. 31, 1995.
Realized gains and losses are determined on an
identified cost basis.
Brokerage commissions paid to brokers affiliated with
American Express Financial Corporation were $88,086
for the six months ended Jan. 31, 1995.
<PAGE>
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Notes to financial statements
IDS Growth Fund, Inc.
______________________________________________________________________________
4. Lending of portfolio securities
At Jan. 31, 1995, securities valued at $18,296,500
were on loan to brokers. For collateral, the fund
received $14,991,000 in cash and U.S. government
securities valued at $3,773,711. Income from
securities lending amounted to $195,287 for the six
months ended Jan. 31, 1995. The risks to the fund of
securities lending are that the borrower may not
provide additional collateral when required or return
the securities when due.
<PAGE>
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<TABLE>
<CAPTION>
5. Financial highlights
The table below shows certain important financial
information for evaluating the fund's results.
IDS Growth Fund, Inc.
Fiscal period ended July 31,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $17.39 $17.99 $18.57$17.62 $24.05 $23.24
beginning of period
Income from investment operations:
Net investment income .02 .02 -- .08 .19 .34
Net gains .74 1.24 2.40 2.66 .69 2.89
(both realized
and unrealized)
Total from investment .76 1.26 2.40 2.74 .88 3.23
operations
Less distributions:
Dividends from net (.04) -- -- (.18) (.33) (.27)
investment income
Distributions from (1.51) (1.86)(2.98) (1.61) (6.98) (2.15)
realized gains
Total distributions (1.55) (1.86)(2.98) (1.79) (7.31) (2.42)
Net asset value, $16.60 $17.39 $17.99 $18.57 $17.62 $24.05
end of period
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
Net assets, end of period
(in millions) $1,018 $952 $933 $863 $780 $756
Ratio of expenses to .87%*** .83% .87% .88% .87% .73%
average daily net assets
Ratio of net income to .20%*** .11% --% .41% 1.36% 1.40%
average daily net assets
Portfolio turnover rate 22% 56% 44% 83% 75% 49%
(excluding short-term
securities)
Total return 4.4%++ 7.0% 13.0% 15.1% 12.4% 15.3%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Jan. 31, 1995 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended Jan. 31, 1995, the annualized total return is 8.8%.
</TABLE>
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<TABLE>
<CAPTION>
Investments in securities
IDS Growth Fund, Inc.
Jan. 31, 1995 (Uuaudited) (Percentages represents value of
investments compared to net assets)
____________________________________________________________________________________________________________________________
Common stocks (96.1%)
____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Airlines (1.6%)
KLM Royal Dutch Air 300,000 (b) $ 8,062,500
Northwest Airlines 440,000 (b) 8,085,000
____________
Total 16,147,500
_____________________________________________________________________________________________________________________________
Automotive & related (0.4%)
Gentex 200,000 (b) 4,450,000
_____________________________________________________________________________________________________________________________
Banks and savings & loans (1.8%)
First Chicago 400,000 18,800,000
_____________________________________________________________________________________________________________________________
Beverages & tobacco (3.1%)
Coca-Cola 600,000 31,500,000
_____________________________________________________________________________________________________________________________
Building materials (1.8%)
Clayton Homes 750,000 11,062,500
Tyco Intl 150,000 7,256,250
____________
Total 18,318,750
_____________________________________________________________________________________________________________________________
Communications equipment (14.4%)
AirTouch Communications 600,000 (b) 16,500,000
Andrew 400,000 (b) 21,200,000
Cisco Systems 400,000 (b) 13,350,000
Ericsson (LM) Tel Cl B ADR 400,000 (c) 21,550,000
Intl Family Entertainment Cl B 196,800 (b) 2,681,400
MFS Communications 150,000 (b) 5,700,000
Motorola 400,000 23,650,000
Scientific-Atlanta 600,000 12,075,000
Tellabs 600,000 (b) 29,850,000
____________
Total 146,556,400
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
Computers & office equipment (11.3%)
Amer Power Conversion 300,000 (b) 4,687,500
Compaq Computer 600,000 (b) 21,450,000
Danka Business Systems ADR 942,000 (c) 22,254,750
Microsoft 450,000 (b) 26,718,750
Oracle Systems 600,000 (b) 25,575,000
Solectron 600,000 (b) 14,325,000
____________
Total 115,011,000
______________________________________________________________________________________________________________________________
Electronics (5.5%)
Applied Materials 200,000 (b) 7,700,000
Harman Intl 300,000 10,950,000
Intel 100,000 6,937,500
Maxim Integrated Products 600,000 (b) 17,400,000
Vishay Intertechnology 251,565 (b) 12,515,359
____________
Total 55,502,859
_____________________________________________________________________________________________________________________________
Energy (2.9%)
Renaissance Energy 100,000 (b,c) 1,764,870
Royal Dutch Petroleum 250,000 27,968,750
____________
Total 29,733,620
_____________________________________________________________________________________________________________________________
Energy equipment & services (2.7%)
Fluor 250,000 11,562,500
Schlumberger 300,000 (c) 15,825,000
____________
Total 27,387,500
_____________________________________________________________________________________________________________________________
Financial services (4.6%)
First Financial Management 400,000 24,700,000
Merrill Lynch 600,000 21,975,000
____________
Total 46,675,000
_____________________________________________________________________________________________________________________________
<PAGE>
Health care (13.4%)
Boston Scientific 990,500 (b,d) 18,324,250
HEALTHSOUTH Rehab 800,000 (b) 30,400,000
Johnson & Johnson 200,000 11,625,000
Medtronics 250,000 14,843,750
Pfizer 250,000 20,437,500
Stryker 400,000 16,100,000
United Healthcare 500,000 24,250,000
____________
Total 135,980,500
_____________________________________________________________________________________________________________________________
Industrial equipment & services (4.4%)
Caterpiller 300,000 15,450,000
Deere 250,000 17,812,500
WMX Technologies 400,000 (b) 11,350,000
____________
Total 44,612,500
_____________________________________________________________________________________________________________________________
Insurance (2.3%)
SunAmerica 300,000 11,850,000
Travelers 300,000 11,062,500
____________
Total 22,912,500
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (2.5%)
Walt Disney 500,000 25,437,500
_____________________________________________________________________________________________________________________________
Media (2.6%)
Comcast 600,000 8,775,000
Tele-Communications 500,000 (b) 10,625,000
Thomas Nelson 300,000 6,975,000
____________
Total 26,375,000
_____________________________________________________________________________________________________________________________
Metals (3.7%)
Birmingham Steel 599,100 12,356,437
Commercial Metals 100,000 2,487,500
Nucor 450,000 22,950,000
____________
Total 37,793,937
_____________________________________________________________________________________________________________________________
<PAGE>
Multi-industry conglomerates (3.7%)
Alco Standard 300,000 19,275,000
Manpower 200,000 5,100,000
Olsten 400,000 13,250,000
____________
Total 37,625,000
_____________________________________________________________________________________________________________________________
Restaurants & lodging (0.6%)
Marriott Intl 200,000 6,050,000
_____________________________________________________________________________________________________________________________
Retail (11.3%)
Best Buy 200,000 (b) 6,200,000
Duracell Intl 400,000 16,300,000
Gillette 300,000 23,062,500
Home Depot 600,000 28,050,000
Nordstrom 300,000 12,150,000
Office Depot 600,000 (b) 15,600,000
St. John Knits 200,000 (b) 6,325,000
Wal-Mart Stores 300,000 6,900,000
____________
Total 114,587,500
_____________________________________________________________________________________________________________________________
Utilities - telephone (1.5%)
Century Telephone 500,000 15,750,000
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $731,136,363) $977,207,066
_____________________________________________________________________________________________________________________________
</TABLE>
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<TABLE>
<CAPTION>
Short-term securities (6.6%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.5%)
Federal Home Loan
Mtge Corp Disc Note
02-09-95 5.65% $5,400,000 $ 5,393,256
_____________________________________________________________________________________________________________________________
Commercial paper (5.5%)
Amer General
02-15-95 5.66 900,000 898,030
Aon
02-24-95 5.85 500,000 498,141
AT&T
02-09-95 6.11 6,000,000 5,991,933
AT&T Capital
02-23-95 5.88 3,900,000 3,886,058
Barclays US
02-14-95 5.76 5,000,000 4,989,654
Bayshore Fuel
02-16-95 5.68 2,771,000 2,764,477
Cargill
03-06-95 6.06 2,300,000 2,287,139
Consolidated Rail
02-21-95 5.68 3,700,000 (e) 3,688,386
Fleet Funding
02-07-95 5.73 5,000,000 (e) 4,995,250
Lincoln Natl
02-13-95 5.68 3,200,000 (e) 3,193,973
Penny (JC) Funding
02-10-95 5.66 6,500,000 6,490,851
Pitney Bowes
02-17-95 5.66 1,600,000 1,595,996
St. Paul Companies
02-15-95 5.68 5,100,000 (e) 5,088,794
Southern California Gas
02-08-95 5.78 2,000,000 (e) 1,997,764
USAA Capital
03-08-95 5.79 7,300,000 7,259,191
_____________
Total 55,625,637
_____________________________________________________________________________________________________________________________
<PAGE>
Letter of credit (0.6%)
Bank of America-
AES Barbers Point
02-17-95 5.82 6,000,000 5,984,533
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $67,003,638) $ 67,003,426
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $798,140,001)(f) $1,044,210,492
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Presently non-income producing.
(c) Foreign security values are stated in U.S. dollars. Foreign securities represent 6.0% of the fund's net assets as of
Jan. 31, 1995
(d) Security is partially or fully on loan. See Note 4 to the financial statements.
(e) 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 the guidelines
established by the board of directors.
(f) At Jan. 31, 1995, the cost of securities for federal income tax purposes was approximately $798,140,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $267,326,000
Unrealized depreciation (21,256,000)
______________________________________________________________________________________________
Net unrealized appreciation $246,070,000
______________________________________________________________________________________________
</TABLE>
<PAGE>
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Directors and officers
Directors and officers of the fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested directors who are officers and/or employees of American
Express Financial Corporation.
William H. Dudley
Exective vice president, American Express Financial Corporation.
David R. Hubers
President and chief executive officer, American Express Fianacial
Corporation.
John R. Thomas
Senior vice president, American Express Financial Corporation.
_____________________________________________________________________
Other officer
Leslie L. Ogg
Vice president of all funds in the IDS MUTUAL FUND GROUP and general
counsel and treasurer of the publicly offered funds.<PAGE>
PAGE
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposit (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income.
Secondary objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia<PAGE>
PAGE
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher rated,
lower risk bond categories, or the equivalent, and in government bonds.
(icon of) greek column
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the timely
payment of principal and interest by the U.S. government, its agencies
and instrumentalities. Seeks a high level of current income and
safety of principal consistent with its type of investments.
(icon of) federal building
Tax-exempt income investments
These funds provide tax-free income by investing in municipal bonds.
The income is generally free from federal income tax. Risk varies
by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed<PAGE>
PAGE
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities
to provide income to residents of each respective state that is
exempt from federal, state and local income taxes. (New York
is the only state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk bond
categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
Growth and income investments
These funds focus on securities of medium to large, well-established
companies that offer long-term growth of capital and reasonable income
from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20%
of its assets in the U.S. market.
(icon of) three flags
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income
investments and money market securities to seek a maximum total
return through a combination of growth of capital and current income.
(icon of) bird in a nest
<PAGE>
PAGE
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of
capital and income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high current
income and, secondarily, to benefit from the growth potential offered
by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice<PAGE>
PAGE
Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy.
These companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth
potential due to superiority in technology, marketing or management.
The fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
<PAGE>
PAGE
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic companies
that explore for, mine and process or distribute gold and other
precious metals. This is the most aggressive and most speculative
IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your financial
planner or writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534. Read it carefully before you invest or send money.
<PAGE>
PAGE
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota:
800-437-3133
Mpls./St. Paul area:
671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone phones only), including current
fund prices and performance, account values and recent account
transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Growth Fund
IDS Tower 10
Minneapolis, MN 55440-0010
