PAGE IDS Life Variable Annuity Fund A
Message from the Executive Vice President
(picture of Janis E. Miller)
Dear Contract Owner,
A weak stock market and an unfavorable environment
for growth stocks resulted in a negative return for
contract owners during the first half of the fiscal
year. This makes the first interruption in the
fund's positive performance pattern in recent
years. For details on the period and an investment
outlook, please review the letter from the fund's
portfolio manager and his team on the following
page.
The stock market's ongoing fluctuations reinforce
the fact that a focus on long-term financial
objectives is an especially important guideline in
today's investment environment. The fund's
approach of investing for the long term in high-
quality growth stocks has benefited contract owners
in the past and, despite short-term movements in
the market, should continue to be beneficial in the
future.
One way to benefit from short-term market movements
is by making regular investments of fixed amounts
of money in an investment that is expected to grow
in value over time. This systematic approach,
called dollar-cost averaging, smoothes theeffects
of stock market volatility and can reduce the
average cost of buying accumulation units.
If your contract allows additional payments, those
extra purchases enable you to dollar-cost average.
Subject to restrictions, if your contract has a
fixed account, you also can establish a systematic
transfer program from the fixed account to the
variable account. In essence, you
may take advantage of market fluctuations by
purchasing more accumulation units when the price
is low and fewer units when the price is high.
This may help you achieve what every investor
wants: to buy at the lowest average price. While
dollar-cost averaging does not ensure a profit and
does not protect against a loss if the market
declines, it is an effective way for many contract
owners who continue investing through changing
market conditions to obtain accumulation units at a
lower average cost to meet long-term goals.
Your IDS personal financial planner can tell you
more about systematic investing and how it can help
you meet your financial objectives. Your planner
also can help you make sure your investment
strategies continue to meet the objectives in your
financial plan. As your objectives and time
horizons change, talk to your planner about the
broad range of IDS and IDS Life products and
services designed to help you meet a variety of
investment and protection needs.
Sincerely,
Janis E. Miller
Executive Vice President, Variable Assets
IDS Life Insurance Company
PAGE IDS Life Variable Annuity Fund A
From Your Portfolio Manager: A Perspective
(Picture of Gordon Fines)
Gordon Fines leads the management team for IDS Life
Variable Annuity Fund A. He also manages IDS New
Dimensions Fund and serves as president of Growth
Spectrum Advisors.
The past six months proved to be a difficult period
for stocks in general and growth stocks in
particular. Because growth stocks comprise the
core of the portfolio, the fund was significantly
affected by those developments and, as a result,
lost value during the period.
On June 30, 1994, the accumulation unit value of
IDS Life Variable Annuity Fund A was $10.01,
compared with $10.70 at the beginning of the year.
(If you purchased additional accumulation units
during this period, your return would have been
affected by the sales and administrative charges,
as described in the prospectus.)
The year got off to a positive start, as the stock
market and the fund gained ground throughout
January. The trend was short-lived, however. In
early February, the Federal Reserve Board began
raising interest rates to head off a potential
spike in the rate of inflation.
As often happens during interest-rate rises, the
stock market went into a retreat that, in this
case, lasted through April. Stocks of mid-size and
large growth companies, which comprise the bulk of
the portfolio, suffered the most during the
downturn. Although the broad market stabilized
somewhat during the final weeks of the period, even
gaining ground at times, growth stocks continued
to languish as investors leaned toward "cyclical"
companies,which were benefiting the most from an
improved economy.
During the period, we maintained an emphasis on
stocks of companies involved in technology,
financial services and business services, which
have treated us well in recent years. Even though
the technology sector was a poor performer overall,
we did enjoy success with several stocks,
including Compaq, Oracle and Microsoft. Other
prominent winners, regardless of business sector,
were First Chicago, United Healthcare, Nucor Steel,
Home Depot and Nordstrom. Disappointments, on the
other hand, were scattered among several sectors,
but stocks of media-related companies were
especially poor performers. On a general note, we
kept a higher-than-normal level of cash reserves,
which helped cushion the portfolio from the impact
of a difficult market.
As for the rest of the year, we think the direction
of the stock market is largely tied to interest
rates. If long-term rates stabilize, then the
chances of a sustained market gain are
substantially better. If that proves out, then we
believe growth stocks are the best candidates to
lead an advance. At this writing, we recently have
added some attractively priced stocks and still
have a fair amount of cash to put to work in stocks
if and when conditions warrant.
PAGE IDS Life Variable Annuity Fund A
<TABLE>
<CAPTION>
Ten Largest Holdings June 30, 1994
______________________________________________________________________
__
Percent of
Fund's
Common Stocks Value Net Assets
_________________________________________________________________
________
<S> <C> <C>
Federal National Mortgage $ 7,682,000 3.45%
Provides residential mortgage funds
Home Depot 6,626,262 2.98
Building materials and home improvement structures
Motorola 6,230,000 2.80
Manufacturer of semiconductors & communication equipment
Oracle Systems 5,625,000 2.53
Markets database management software
Computer Association Int'l 5,600,000 2.52
Systems software packages
First Chicago 5,534,375 2.49
Commercial banking
CSX 5,511,500 2.48
Railroad holding and transportation
Enron 5,141,750 2.31
Major natural gas pipeline system
Compaq Computer 4,837,500 2.17
Portable personal computers
First Financial Management 4,773,000 2.15
Financial data processing services
_________________________________________________________________
_________
Total $57,561,387 25.88%
_________________________________________________________________
_________
Excludes short-term securities.
</TABLE>
PAGE IDS Life Variable Annuity Fund A
<TABLE>
____________________________________________________________
________________
Statement of Assets, Liabilities and Contract Owners' EquityJune 30, 1994
<CAPTION>
Assets
____________________________________________________________
________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost, $178,968,991) $222,341,658
Cash in bank on demand deposit 491,668
Receivable for investment securities sold 1,263,127
Dividends and interest receivable 278,207
Receivable from IDS Life Insurance Company
for contract purchase payments 21,169
____________________________________________________________
__________________Total assets $224,395,829
____________________________________________________________
_________________
Liabilities
____________________________________________________________
_________________
Payable for investment securities purchased $ 1,926,796
Payable for contract terminations 9,564
Payable to IDS Life Insurance Company for:
Mortality and expense assurance fee 6,161
Investment management fee 2,465
____________________________________________________________
__________________Total liabilities 1,944,986
____________________________________________________________
__________________
Contract owners'
equity
____________________________________________________________
__________________
Contracts in accumulation period - 21,877,504 units at
$10.01 per unit (Note 5) 219,093,408
Contracts in payment period - 12,910 annuity units 3,357,435
____________________________________________________________
__________________Total contract owners' equity 222,450,843
____________________________________________________________
__________________Total liabilities and contract owners'
equity $224,395,829
____________________________________________________________
__________________See accompanying notes to financial
statements.
PAGE IDS Life Variable Annuity Fund A
____________________________________________________________
__________________Statement of OperationsSix months ended June 30, 1994
Investment income - net
____________________________________________________________
__________________
(Unaudited)
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $17,903)$ 1,180,088
Interest 662,585
____________________________________________________________
__________________Total income 1,842,673
____________________________________________________________
__________________Expenses:
Mortality and expense assurance fee (Note 2) 1,181,837
Investment management fee (Note 3) 472,759
____________________________________________________________
__________________Total expenses 1,654,596
____________________________________________________________
__________________Investment income - net 188,077
____________________________________________________________
__________________
Realized and unrealized gain (loss) on investments - net
____________________________________________________________
__________________Net realized gain on investments (Note 4)7,743,711
Net change in unrealized appreciation or depreciation
of investments (23,208,153)
____________________________________________________________
__________________Net loss on investments (15,464,442)
____________________________________________________________
__________________Net decrease in contract owners' equity
from operations $(15,276,365)
____________________________________________________________
__________________See accompanying notes to financial
statements.
PAGE IDS Life Variable Annuity Fund A
____________________________________________________________
__________________Statement of Changes in Contract Owners'
Equity
<CAPTION>
Six months
ended Year ended
June 30, 1994Dec. 31, 1993
Operations
____________________________________________________________
__________________
(Unaudited)
<S> <C> <C>
Investment income (loss) - net $ 188,077$ (407,176)
Net realized gain on investments 7,743,711 26,995,293
Net change in unrealized appreciation or depreciation
of investments (23,208,153) (5,359,135)
____________________________________________________________
__________________Net increase (decrease) in contract
owners' equity
from operations (15,276,365) 21,228,982
____________________________________________________________
__________________
Contract
Transactions
____________________________________________________________
__________________Net contract purchase payments (Note 2)1,124,647 2,312,271
Repayment of temporary withdrawals 11,464 38,118
Net transfers from (to) fixed annuities 1,667,282 (267,116)
Actuarial adjustment for mortality assurance on
annuities in payment period (Note 2) - 37,041
Contract termination payments and temporary withdrawals(6,438,826) (9,575,167)
Annuity payments (260,328) (516,785)
____________________________________________________________
__________________Net decrease from contract transactions(3,895,761) (7,971,638)
____________________________________________________________
__________________Net increase (decrease) in contract
owners' equity (19,172,126) 13,257,344
____________________________________________________________
__________________
Contract owners' equity at beginning of period241,622,969228,365,625
____________________________________________________________
__________________
Contract owners' equity at end of period$222,450,843$241,622,969
____________________________________________________________
__________________See accompanying notes to financial
statements.
</TABLE>
PAGE IDS Life Variable Annuity Fund A
Notes to Financial Statements (Unaudited)
__________________________________________________
_______________1. Organization and summary of
significant accounting policies
IDS Life Variable Annuity Fund A (the Fund) is
organized as a segregated asset account of IDS
Life Insurance Company (IDS Life) under Minnesota
law and is registered under the Investment Company
Act of 1940 as a diversified, open-end management
investment company. The Fund's assets are held
for the exclusive benefit of its variable annuity
contract owners and are not chargeable with any
liabilities arising from the other business
activities of IDS Life. The significant
accounting policies followed by the Fund are
summarized as follows:
Investments in securities
Securities traded on national securities exchanges
are valued at the last quoted sales price on the
principal exchange on which traded. Securities
traded in the over-the-counter market are valued
at the mean of the last quoted bid and asked
price. Short-term securities which mature in 60
days or less are valued at amortized cost. Those
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.
Short-term securities originally purchased with
maturities of more than 60 days but which
currently mature in 60 days or less are valued on
an amortized cost basis using the market value or
approximate market value on the 61st day before
maturity. Bonds and other securities are valued
at fair value as determined by the Board of
Managers when market quotations are not readily
available. Determination of fair value involves,
among other things, references to market indexes,
matrices and data from independent brokers.
Security transactions are accounted for on the
date the securities are purchased and sold.
Dividend income is recorded on the ex-dividend
date.
Option contracts
In order to produce incremental earnings,
protect gains, and facilitate buying and selling
of securities for investment purposes, the Fund
may buy and sell put and call options and write
covered call options on portfolio securities. 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.
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.
PAGE IDS Life Variable Annuity Fund A
Notes to Financial Statements (Unaudited)
__________________________________________________
_______________1. Organization and summary of
significant accounting policies (continued)
Futures contracts
In order to gain exposure to or protect itself
from changes in the market, the Fund may buy and
sell stock index futures contracts and related
options. 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 the 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 Fund each day. The variation margin
payments are equal to the daily changes in the
contract value and are recorded as unrealized
gains and losses. The Fund recognizes a realized
gain or loss when the contract is closed or
expires.
Foreign currency translations and
forward 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 rate of exchange on
the transaction date. It is not practicable to
identify that portion of realized and unrealized
gain or loss arising from changes in the exchange
rates from the portion arising from changes in the
market value of investments.
The Fund may also 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 income taxes
IDS Life is taxed as a life insurance company.
The Fund is treated as part of IDS Life for
federal income tax purposes. Under current
federal income tax law, no taxes are payable with
respect to any income of the Fund.
__________________________________________________
_______________2. Mortality and expense assurance
fee and sales charges
IDS Life makes contractual assurances to the Fund
that possible future adverse changes in
administrative expenses and mortality experience
of the annuitants and beneficiaries will not
affect the Fund. The mortality and expense
assurance fee paid to IDS Life is computed daily
and is equal on an annual basis to 1 percent of
the average daily net assets of the Fund.
PAGE IDS Life Variable Annuity Fund A
Notes to Financial Statements (Unaudited)
__________________________________________________
_______________2. Mortality and expense assurance
fee and sales charges (continued)
Charges by IDS Life for its sales and
administrative services applicable to the variable
annuity contracts amounted to $47,654 for the six
months ended June 30, 1994 and $100,741 in 1993.
Such charges are not an expense of the Fund. They
are deducted from contract purchase payments and
are not included in the net contract purchase
payments to the Fund.
__________________________________________________
_______________3. Investment management agreement
The Fund has an Investment Management Agreement
with IDS Life. For its services, IDS Life is paid
a fee based on the aggregate average daily net
assets of the Fund. The investment management fee
paid to IDS Life is computed daily and is equal on
an annual basis to 0.4 percent of the average
daily net assets of the Fund.
In addition to paying its own management fee, the
Fund also pays all brokerage commissions and
charges in the purchase and sale of assets.
Brokerage charges are paid to IDS Life for
reimbursement of charges incurred in the purchase
and sale of foreign securities.
__________________________________________________
_______________4. Security transactions and basis
for determining realized gain and loss
Cost of purchases and proceeds from sales of
securities, (other than short-term obligations)
aggregated $55,513,091 and $69,444,225 for the six
months ended June 30, 1994. Net realized gain on
investments has been determined on the basis of
identified costs.
Brokerage commissions paid to brokers affiliated
with IDS Life were $6,152 for the six months ended
June 30, 1994.
__________________________________________________
_______________5. Accumulation units
The changes in number of outstanding units
applicable to contracts in the accumulation period
were as follows:
<TABLE>
Six months ended Year ended
June 30, 1994Dec. 31, 199
3
_______________________________________________________
_________________
<S> <C> <C>
Units outstanding at beginning of period22,264,61123,01
2,803
Additions for contract purchase payments and
repayments 106,844 231,859
Net transfers from (to) fixed annuities155,915 (27,476)
Deductions for contract terminations and withdrawals(64
9,866) (952,575)
_______________________________________________________
_________________Units outstanding at end of period21,8
77,504 22,264,611
</TABLE>
PAGE IDS Life Variable Annuity Fund A
Notes to Financial Statements (Unaudited)
_______________________________________________________
__________
6. Financial highlights
<TABLE>
The table below shows certain important financial
information for evaluating the Fund's results.
<CAPTION>
Six months
ended Year ended Dec. 31,
June 30, ______
_________________________________________
1994 1993 1992 1991 1990 1989
___________________________________________________________________________
___________________
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value at beginning of period$10.70$ 9.77$9.13 $6.10
$5.98 $4.58
___________________________________________________________________________
___________________
Income from investment operations:
Net investment income (loss) .01 (.02) (.03) .02 .06 .05
Net gains (losses) on securities, both realized
and unrealized (0.70) 0.95 0.67 3.01 .06 1.35
___________________________________________________________________________
___________________
Total from investment operations(0.69) 0.93 0.64 3.03 .12 1.40
___________________________________________________________________________
___________________
Accumulation unit value at end of period$10.01$10.70$9.77 $9.13 $6.10
$5.98
___________________________________________________________________________
___________________
Total Return** (6.41)%+ 9.50% 6.97%49.83% 1.97%30.60%
___________________________________________________________________________
___________________
Ratios/Supplemental Data
Total contract owner's equity at end of period
(000 omitted) $222,451$241,623$228,366$222,205$155,426 $163,568
Ratio of operating expenses to average net assets1.40%*1.40%1.40% 1.41%
1.41% 1.43%
Ratio of net investment income (loss) to average
net assets 0.16%*(0.17)%(0.30)%0.22% 0.97% 0.99%
Portfolio turnover rate 28% 64% 74% 68% 56% 55%
___________________________________________________________________________
________________
*Adjusted to an annual basis.
**Total return does not reflect payment of a sales
charge.
+For the six month period ended June 30, 1994, the
annualized total return is (12.72)%.
The foregoing table pertains to accumulation units
only. There are two kinds of units. As long as
you are paying into the Fund they are called
"accumulation" units, when you begin to receive
your annuity, they change to "annuity" units.
PAGE IDS Life Variable Annuity Fund A
Notes to Financial Statements (Unaudited)
__________________________________________________
_______________
6. Financial highlights (continued)
The value of an annuity unit (assuming a 3.5
percent investment rate) was $4.08 as of June 30,
1994, $4.44 as of Dec. 31, 1993, $4.19 as of Dec.
31, 1992, $4.06 as of Dec. 31, 1991, $2.80 as of
Dec. 31, 1990 and $2.84 as of Dec. 31, 1989. The
value of an annuity unit (assuming a 5 percent
investment rate) was $2.79 as of June 30, 1994,
$3.06 as of Dec. 31, 1993, $2.93 as of Dec. 31,
1992, $2.88 as of Dec. 31, 1991, $2.02 as of Dec.
31, 1990 and $2.08 as of Dec. 31, 1989 </TABLE>
PAGE IDS Life Variable Annuity Fund A
<TABLE>
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
__________________(Percentages represent value of
investments compared to total net assets)
<CAPTION>
Common Stocks
____________________________________________________________
__________________Issuer Shares Value(a)
____________________________________________________________
__________________<S> <C> <C>
Airlines (1.6%)
Southwest Airlines 140,000 $ 3,657,500
____________________________________________________________
__________________Automotive Related (4.1%)
Chrysler 55,000 2,591,875
Eaton 80,000 4,160,000
Ford Motor 40,000 2,360,000
___________
9,111,875
____________________________________________________________
__________________Banks and Savings & Loans (4.9%)
Bank America 25,000 1,143,750
First Chicago 115,000 5,534,375
Nations Bank 82,000 4,212,750
___________
10,890,875
____________________________________________________________
__________________Beverages & Tobacco (1.1%)
Coca-Cola 60,000 2,437,500
____________________________________________________________
__________________Computers & Office Equipment (10.1%)
Cisco Systems 162,000(b) 3,786,750
Compaq Computer 150,000(b) 4,837,500
Computer Association Int'l 140,000 5,600,000
Lotus Development 30,000(b) 1,102,500
Microsoft 30,000(b) 1,545,000
Oracle Systems 150,000(b) 5,625,000
___________
22,496,750
____________________________________________________________
__________________Electronics (2.3%)
Harman Int'l 40,000(b) 1,000,000
Intel 72,000 4,212,000
___________
5,212,000
____________________________________________________________
__________________See accompanying notes to investments in
securities.
PAGE IDS Life Variable Annuity Fund A
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
__________________(Percentages represent value of
investments compared to total net assets)
Common Stocks (continued)
____________________________________________________________
__________________Issuer Shares Value(a)
____________________________________________________________
__________________Financial Services (9.6%)
Dean Witter 70,000 2,625,000
Federal National Mortgage 92,000 7,682,000
First Financial Management 86,000 4,773,000
H & R Block 45,500 1,785,875
Household Int'l 65,000 2,210,000
MBNA 100,000 2,250,000
___________
21,325,875
____________________________________________________________
__________________Foreign (9.1%)
British Airways ADR 38,000 2,189,750
Cable & Wireless 100,000 1,862,500
Ericsson ADR 50,000 2,478,125
Grupo Carso ADR 62,000(b) 1,107,816
Grupo Televisa 50,000(d) 2,537,500
Magna Int'l 74,000 2,960,000
News Corp ADR 70,000 3,377,500
Royal Dutch Petroleum 25,000 2,615,625
Woolworth's 550,000 1,159,400
___________
20,288,216
____________________________________________________________
__________________Health Care (2.5%)
Genentech 40,000(b) 1,970,000
Medtronic 45,000 3,605,625
___________
5,575,625
____________________________________________________________
__________________Health Care Services (3.6%)
Columbia Healthcare 60,000 2,242,500
HEALTHSOUTH Rehabilitation 60,000(b) 1,567,500
United Healthcare 92,000 4,094,000
___________
7,904,000
____________________________________________________________
__________________Household Products (1.5%)
Gillette 50,000 3,256,250
____________________________________________________________
__________________Industrial Transportation (2.5%)
CSX 73,000 5,511,500
____________________________________________________________
__________________Insurance (1.0%)
Equitable 120,000 2,130,000
____________________________________________________________
__________________See accompanying notes to investments in
securities.
PAGE IDS Life Variable Annuity Fund A
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
__________________(Percentages represent value of
investments compared to total net assets)
Common Stocks (continued)
____________________________________________________________
__________________Issuer Shares Value(a)
____________________________________________________________
__________________Leisure Time & Entertainment (4.0%)
Int'l Game Technology 100,000 1,887,500
Mattel 62,500 1,585,938
Promus 100,000 2,962,500
Walt Disney 60,000 2,497,500
___________
8,933,438
____________________________________________________________
__________________Media (2.8%)
Comcast 100,000 1,800,000
Time Warner 125,000 4,390,625
___________
6,190,625
____________________________________________________________
__________________Metals (3.0%)
Birmingham Steel 80,000 2,160,000
Nucor 65,000 4,452,500
______________
6,612,500
____________________________________________________________
__________________Natural Gas (3.0%)
Enron 157,000 5,141,750
Enron Oil & Gas 64,000 1,472,000
___________
6,613,750
____________________________________________________________
__________________Restaurants & Lodging (3.7%)
Brinker Int'l 165,000(b) 3,465,000
Hilton Hotels 45,000 2,385,000
Wendy's Int'l 160,000 2,500,000
___________
8,350,000
____________________________________________________________
__________________Retail (8.6%)
Home Depot 157,300 6,626,262
J.C. Penney 70,000 3,797,500
Nordstrom 80,000 3,400,000
Office Depot 150,000(b) 3,000,000
Wal-Mart Stores 100,000 2,425,000
___________
19,248,762
____________________________________________________________
__________________See accompanying notes to investments in
securities.
PAGE IDS Life Variable Annuity Fund A
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
__________________(Percentages represent value of
investments compared to total net assets)
Common Stocks (continued)
____________________________________________________________
__________________Issuer Shares Value(a)
____________________________________________________________
__________________Telecommunications Equipment & Services
(3.9%)
AirTouch Communications 105,000(b) 2,480,625
Motorola 140,000 6,230,000
___________
8,710,625
____________________________________________________________
__________________Utilities - Telephone (1.1%)
U.S. West 60,000 2,512,500
____________________________________________________________
__________________Total Common Stocks (84.0%)
(Cost: $143,571,167) $186,970,166
____________________________________________________________
__________________
<CAPTION>
Short-term Securities
____________________________________________________________
__________________
Annualized
Yield on
Date of Principal
Issuer Purchase Amount Value(a)
____________________________________________________________
__________________<S> <C> <C> <C>
U.S. Government & Agency (3.5%)
FNMA Disc Nts
07-15-94 4.19%$ 400,000 $ 399,350
07-21-94 4.24 700,000 698,355
07-26-94 4.22 700,000 697,953
09-13-94 4.39 3,100,000 3,067,838
U.S. Treasury Bills, 07-28-94 3.19 3,000,000 2,988,873
__________
7,852,369
____________________________________________________________
__________________Commercial Paper (9.7%)
CIT Group, 03-28-95 4.39(e)5,000,000 4,996,145
Columbia Fuels, 08-08-94 4.35 2,000,000 1,990,329
Ford Motor Credit, 08-16-94 4.55 2,150,000 2,137,375
Nat'l Australia Funding, 08-30-94 4.58 1,150,000 1,141,134
Norfolk Southern, 07-13-94 3.27 4,000,000(c) 3,992,376
Paribas Finance, 07-15-94 4.24 2,600,000 2,595,723
Pitney Bowes Credit, 07-08-94 3.99 2,000,000 1,997,798
Southern California Gas, 08-10-94 4.35 2,700,000(c) 2,686,248
___________
21,537,128
____________________________________________________________
__________________See accompanying notes to investments in
securities.
PAGE IDS Life Variable Annuity Fund A
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
__________________(Percentages represent value of
investments compared to total net assets)
Short-term Securities (continued)
____________________________________________________________
__________________
Annualized
Yield on
Date of Principal
Issuer Purchase Amount Value(a)
____________________________________________________________
__________________Letters of Credit (2.2%)
Bank America-Hyundai
07-20-94 3.30 4,000,000 3,989,294
07-26-94 3.28 1,000,000(c) 992,701
___________
4,981,995
____________________________________________________________
__________________Bankers Acceptance (0.5%)
Republic National Bank NY, 07-01-944.52 1,000,000 1,000,000
____________________________________________________________
__________________Total Short-term Securities (15.9%)
(Cost: $35,397,824) $ 35,371,492
____________________________________________________________
__________________Total Investments in Securities (99.9%)
(Cost: $178,968,991)(f) $222,341,658
____________________________________________________________
__________________
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)Commercial paper 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."
These securities have been determined to be liquid
under guidelines established by the board of
managers.
(d)Represents security sold under Rule 144A and is
exempt from registration under the Securities Act
of 1933, as amended. This security has been
determined to be liquid under guidelines
established by the board of managers.
(e)Interest rate varies, rate shown is the
effective rate on June 30, 1994.
(f)At June 30, 1994, the cost of securities for
federal income tax purposes was $178,968,991 and
the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<S> <C>
Unrealized appreciation $48,148,788
Unrealized depreciation (4,776,121)
____________________________________________________________
______
Net unrealized appreciation $43,372,667
____________________________________________________________
______
</TABLE>
PAGE IDS Life Variable Annuity Fund A
Managers and Officers
Board of Managers
Richard W. Kling
president, IDS Life Insurance Company
Edward Landes
retired, former development consultant
Janis E. Miller
executive vice president, Variable assets,
IDS Life Insurance Company
Carl N. Platou
president emeritus, Fairview Hospital
and Healthcare Services
Gordon H. Ritz
president, Con Rad Broadcasting Corp.
Principal Officers
Richard W. Kling
chairman of the board and president
Louis C. Fornetti
vice president
Morris Goodwin, Jr.
vice president and treasurer
William A. Stoltzmann
general counsel and assistant secretary
Colleen Curran
secretary
Robert O. Schneider
controller
Additional Information
The investment objective of IDS Life Variable
Annuity Fund A is to invest in securities which
offer opportunities for long-term capital
appreciation consistent with accumulating fund
value and providing annuity payments under
variable annuity contracts issued by IDS Life.
PAGE IDS Life Variable Annuity Fund A
Additional Information (continued)
There is a sales and administrative charge to the
contract owner included in the purchase payment.
This report is for the information of contract
owners of IDS Life Variable Annuity Fund A but it
may be used as sales literature when preceded or
accompanied by the current prospectus. For
details and other material information, see the
current prospectus.
Issuer and Investment Manager:
IDS Life Insurance Company,
Minneapolis, Minn.
Custodian:
IDS Trust Company,
Minneapolis, Minn.
Sub-Custodian:
First Bank National Association
St. Paul, Minn.
PAGE IDS Life Variable Annuity Fund A
Notes
PAGE IDS Life Variable Annuity Fund A
IDS Life Insurance Company Products
__________________________________________________
_______________Universal Life Insurance
Flexible protection for your changing needs. IDS
Life's Life Protection Plus plan is Universal Life
Insurance that separates the cash value of your
policy from the insurance, allowing you to adapt
the plan to fit your circumstances. A flexible
premium payment policy allows you to add to your
cash value and earn interest at current rates on a
tax-deferred basis.
__________________________________________________
_______________Variable Universal Life Insurance*
Protection with opportunities for growth.
Variable Universal Life Insurance from IDS Life is
a tax-advantaged flexible protection plan that
lets you vary your protection as your needs change
and build a cash value by taking advantage of
different market conditions. You can choose from
nine different investment options for you cash
value that let you select the appropriate
investment objectives. Variable Universal Life is
offered by prospectus only.
__________________________________________________
_______________Whole Life Insurance
Permanent protection with guaranteed cash value.
IDS Life's Whole Life Insurance provides lifetime
protection. The amount of your insurance will not
change as long as you maintain your policy, and
your cash value is guaranteed at all times. Whole
life insurance provides a systematic way to
accumulate cash value and earn interest on a tax-
deferred basis.
__________________________________________________
_______________Term Life Insurance
Low cost protection until you reach your goals.
Term Life insurance from IDS Life can provide low
cost coverage while you work toward a specific
objective. You can choose from several plans.
__________________________________________________
_______________Income Protection Plans
Protection against the loss of income from
disability. IDS Life's Income Protection Plans
(Disability Insurance) provide an income if you
are injured or too sick to work. A personal
income protection plan offers you financial
security against the loss of income.
__________________________________________________
_______________Long-Term Care Plan
An insurance plan to help you cover the costs of
nursing home care and home care. The IDS Long-
Term Care plan helps protect the savings you've
built up over a lifetime.
__________________________________________________
_______________Fixed Retirement Annuities and
Fixed Retirement Annuity-Value Plus
A tax-deferred way to provide a guaranteed
lifetime income. A single payment IDS Life Fixed
Retirement Annuity creates an income you can't
outlive. The annuities offer competitive fixed
rates of return tax-deferred, until earnings are
withdrawn. Your money is invested in a high
quality diversified portfolio.
__________________________________________________
_______________
PAGE IDS Life Variable Annuity Fund A
IDS Life Insurance Company Products (continued)
__________________________________________________
_______________Flexible Annuity
Investment flexibility as you provide for a
lifetime income. Looking for the ultimate in
terms of investment flexibility? IDS Life's
Flexible Annuity lets you take advantage of
changes in the economy by directing your purchase
payments into an equity fund, and aggressive
equity fund, and international equity fund, a bond
fund, a managed fund, a money market fund, a fixed
account - or any combination of the seven. You
pay no taxes on earnings until they are withdrawn.
The overall value of your annuity will vary
according to the performance of the fund(s) you
select. The Flexible Annuity is offered by
prospectus only.
__________________________________________________
_______________Real Estate Variable Annuity
A real estate investment providing retirement
income through an annuity contract. Purchase
payments will be primarily invested into a
diversified portfolio of income-producing real
estate related investments. The Real Estate
Variable Annuity is offered by prospectus only.
__________________________________________________
_______________Immediate Annuity
A single payment guarantees you immediate lifetime
income. In exchange for a single premium payment,
IDS Life will pay you a fixed dollar guaranteed
monthly income for life, beginning within 30 days
of the date of your purchase. You may select the
annuity payment option that is best suited to your
income needs.
__________________________________________________
_______________*Variable Universal Life Insurance
is not available in the District of Columbia. For
more complete information, including charges and
expenses, on Variable Universal Life Insurance,
Flexible Annuity and Real Estate Variable Annuity,
you can obtain a prospectus by contacting your IDS
personal financial planner. Read it carefully
before you invest or send money.
