IDS Life Variable Annuity Fund
A
PAGE
1995 SEMIANNUAL REPORT
IDS Life
Variable Annuity
Fund A
Invests in a wide range of securities to
provide long-term capital appreciation for
contract owners
Managed by IDS Life Insurance Copany
(American Express Financial Advisors logo)
PAGE
Message From the Executive Vice President
(picture of Janis Miller)
Dear Contract Owner,
Last year at this time, we were talking to you
about how the stock market had made for a
difficult period for contract owners of this
Fund. Now, as the market tends to do, things
have moved in a different direction.
Particularly since the latter part of 1994,
investors have enjoyed a buoyant recovery.
As we have said before, such market volatility
is a fact of life. But in the long run, history
tells us that equities provide solid
performance for investors. The bottom line for
you is to continue with a long-term perspective
-- something that the structure of this Fund
generates for you.
One way to benefit from short-term market
movements is by making regular investments of
fixed amounts of money. This systematic
approach, called dollar-cost averaging,
smoothes the effects 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 restriction, 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 reduce
the average cost of purchasing accumulation
units. 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 financial advisor can tell you more about
systematic investing and how it can help you
meet your financial objectives. Your advisor
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 advisor
about the broad range of products and services
offered by American Express Financial
Corporation and IDS Life 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
From Your Portfolio Manager: A Perspective
(picture of Mitzi Malevich)
Mitzi Malevich serves as portfolio manager for
IDS Life Variable Annuity Fund A. She also
manages IDS Growth Fund.
Sharp stock selection and a powerful market
rally combined to generate a double-digit gain
for contract owners during the first half of
the fiscal year (January through June 1995).
On June 30, 1995, the accumulation unit value
of IDS Life Variable Annuity Fund A was $12.26,
compared with $10.27 at the beginning of the
year. (If you purchased additional accumulation
units during the period, your return would have
been affected by the sales and administrative
charges, as described in the prospectus.)
After struggling throughout nearly all of 1994,
the stock market got off to a strong start this
year. The driving factors included an ongoing
low inflation rate, good corporate profits and
declining long-term interest rates - an almost
sure-fire formula for rising stock prices. With
those factors in place throughout the six-month
period, the stock market enjoyed its strongest
advance in years.
To the particular benefit of this Fund, growth
stocks, which had languished for many months,
responded particularly well to the positive
environment. More specifically, stocks of
technology companies, especially those of
semiconductor producers, were often at the
forefront of the market rally. Complementing
the gains by those issues were good
performances by health care and financial
services stocks, to which we also had
considerable exposure.
Consistent with the change in portfolio
managers that took place last spring, the Fund
carried little cash reserves during the period.
This strategy also contributed to the Fund's
performance, as the return from stocks far
exceeded that generated by cash. The low cash
level will be an ongoing facet of the Fund.
While we expect this approach to be a benefit
during positive market trends, it will also
likely mean more negative performance during
downturns. In the long run, however, we believe
results will be enhanced.
As we enter the second half of the year, we
think the key to the market's direction will be
long-term interest rates. If they take a stable-
to-declining path, stocks will be in good
position to advance, though it's unlikely they
will be able to match the pace of the first
half of the year. Another possible boon to the
market is the possibility of a reduction in the
capital gains tax. That, should it occur, may
be some time away, however. In the meantime, we
will continue our search for rapidly growing
companies with bright business prospects,
regardless of industry sector.
Mitzi Malevich
PAGE
<TABLE>
<CAPTION>
Ten Largest Holdings June 30, 1995
______________________________________________________________________
_________
Percent of
Fund's
Common Stocks Value Net Assets
______________________________________________________________________
_________
<S> <C> <C>
Oracle Systems $ 8,690,625 3.37%
Markets database management software
Cisco Systems 8,191,125 3.18
Manufacturer of computer network products
Tellabs 7,218,750 2.80
Designer, manufacturer and marketer of a broad range of products and
equipment
for use by telephone companies, the Bell System, specialized common
carriers and
other providers of telecommunication services
Medtronic 6,941,250 2.70
A major, diversified medical device company
Compaq Computer 6,806,250 2.64
Portable personal computers
Computer Association International 6,775,000 2.63
Systems software packages
Pfizer 6,595,575 2.56
Leading producer of pharmaceuticals, hospital products, animal health
items,
non-prescription medications and specialty chemicals
Nucor Steel 6,420,000 2.49
One of the largest and most profitable domestic steel mini-mills,
Nucor Steel
is a leading producer of joist and girders used in construction
Home Depot 6,390,313 2.48
Building materials and home improvement structures
Coca-Cola 6,349,500 2.46
The world's largest producer and distributor of soft drinks,
concentrates and syrups
______________________________________________________________________
_________
Total $70,378,388 27.31%
______________________________________________________________________
_________
Excludes short-term securities.
</TABLE>
PAGE
<TABLE>
<CAPTION>
____________________________________________________________
__________________
Statement of Assets, Liabilities and Contract Owners' EquityJune 30, 1995
Assets
____________________________________________________________
__________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost, $180,242,623) $258,860,280
Cash in bank on demand deposit 70,196
Dividends and interest receivable 201,328
Receivable from IDS Life Insurance Company
for contract purchase payments 45,167
____________________________________________________________
__________________
Total assets $259,176,971
____________________________________________________________
__________________
Liabilities
____________________________________________________________
__________________
Payable for investment securities purchased $ 1,379,393
Payable for contract terminations 86,702
Payable to IDS Life Insurance Company for:
Mortality and expense assurance fee 33,605
Investment management fee 10,858
____________________________________________________________
__________________
Total liabilities 1,510,558
____________________________________________________________
__________________
Contract owners'
equity
____________________________________________________________
__________________
Contracts in accumulation period - 20,707,505 units at
$12.26 per unit (Note 5) 253,877,378
Contracts in payment period - 11,845 annuity units 3,789,035
____________________________________________________________
__________________
Total contract owners' equity 257,666,413
____________________________________________________________
__________________
Total liabilities and contract owners' equity $259,176,971
____________________________________________________________
__________________
See accompanying notes to financial statements.
PAGE
____________________________________________________________
__________________
Statement of Operations Six months ended June 30, 1995
Investment income - net
____________________________________________________________
__________________
(Unaudited)
Income:
Dividends (net of foreign taxes withheld of $35,340)$1,110,974
Interest 557,835
____________________________________________________________
__________________
Total income 1,668,809
____________________________________________________________
__________________
Expenses:
Mortality and expense assurance fee (Note 2) 1,173,556
Investment management fee (Note 3) 469,447
____________________________________________________________
__________________
Total expenses 1,643,003
____________________________________________________________
__________________
Investment income - net 25,806
____________________________________________________________
__________________
Realized and unrealized gain (loss) on investments - net
____________________________________________________________
__________________
Net realized gain on investments 7,210,653
Net change in unrealized appreciation or depreciation of
investments 35,202,100
____________________________________________________________
__________________
Net gain on investments 42,412,753
____________________________________________________________
__________________
Net increase in contract owners' equity from operations$42,438,559
____________________________________________________________
__________________
See accompanying notes to financial statements.
</TABLE>
PAGE
<TABLE>
<CAPTION>
____________________________________________________________
__________________
Statement of Changes in Contract Owners' Equity
Six months endedYear ended
June 30, 1995Dec. 31, 1994
Operations
____________________________________________________________
__________________
(Unaudited)
<S> <C> <C>
Investment income - net $ 25,806$ 639,660
Net realized gain on investments 7,210,653 13,002,716
Net change in unrealized appreciation or depreciation
of investments 35,202,100(23,165,263)
____________________________________________________________
___________________
Net increase (decrease) in contract owners' equity
from operations 42,438,559 (9,522,887)
____________________________________________________________
__________________
Contract
Transactions
____________________________________________________________
__________________
Net contract purchase payments (Note 2) 1,021,042 2,165,599
Repayment of temporary withdrawals 31,351 24,168
Net transfers from (to) fixed annuities(1,064,262) 1,676,784
Actuarial adjustment for mortality assurance on
annuities in payment period (Note 2) -- (29,415)
Contract termination payments and temporary withdrawals(7,822,861) (12,113,259)
Annuity payments (254,196) (507,179)
____________________________________________________________
__________________Net decrease from contract transactions(8,088,926) (8,783,302)
____________________________________________________________
__________________Net increase (decrease) in contract
owners' equity 34,349,633 (18,306,189)
____________________________________________________________
__________________
Contract owners' equity at beginning of period223,316,780241,622,969
____________________________________________________________
__________________
Contract owners' equity at end of period$257,666,413$223,316,780
____________________________________________________________
___________________
See accompanying notes to financial statements.
</TABLE>
PAGE
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 that 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.
During the six months ended June 30, 1995, the Fund
did not buy or sell any put or call options or write
any covered call or put options. There were no
option contracts outstanding at June 30, 1995.
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.
During the six months ended June 30, 1995, the Fund
did not buy or sell stock index futures contracts
and related options. There were no stock index
futures contracts outstanding at June 30, 1995.
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
fluctation. 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.
There were no forward foreign currency exchange
contracts outstanding at June 30, 1995.
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.
Charges by IDS Life for its sales and administrative
services applicable to the variable annuity
contracts amounted to $43,792 for the six months
ended June 30, 1995 and $91,643 in 1994. 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 $71,119,793 and $67,924,208 for the six
months ended June 30, 1995. Net realized gain on
investments has been determined on the basis of
identified costs.
Brokerage commissions paid to brokers affiliated
with IDS Life were $848 for the six months ended
June 30, 1995.
____________________________________________________
________________5. Accumulation units
The changes in number of outstanding units
applicable to contracts in the accumulation period
were as follows:
Six months ended Year ended
June 30, 1995Dec. 31, 1994
____________________________________________________
________________Units outstanding at beginning of
period 21,424,899 22,264,611
Additions for contract purchase payments and
repayments 94,774 208,512
Net transfers from (to) fixed annuities(92,129) 157,132
Deductions for contract terminations and withdrawals(720,039)
(1,205,356)
____________________________________________________
________________Units outstanding at end of period20,707,505 21,424,899
____________________________________________________
________________
____________________________________________________
________________6. Financial highlights
The table below shows certain important financial
information for evaluating the Fund's results.
<TABLE>
<CAPTION>
Six months
ended Year ended Dec. 31,
June 30,
__________________________________________
1995 1994 1993 1992 1991 1990
___________________________________________________________________________
___________________
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value at beginning of period$10.27$10.70$ 9.77 $9.13 $6.10 $5.98
___________________________________________________________________________
___________________
Income from investment operations:
Net investment income (loss) -- .03 (.02) (.03) .02 .06
Net gains (losses) on securities, both realized
and unrealized 1.99 (0.46) 0.95 0.67 3.01 .06
___________________________________________________________________________
___________________
Total from investment operations 1.99 (0.43) 0.93 0.64 3.03 .12
___________________________________________________________________________
___________________
Accumulation unit value at end of period $12.26 $10.27 $10.70 $9.77 $9.13 $6.10
___________________________________________________________________________
___________________
Total Return** 19.40%+(4.01)% 9.50% 6.97% 49.83% 1.97%
___________________________________________________________________________
____________________
Ratios/Supplemental Data
Total contract owner's equity at end of period
(000 omitted) $257,666$223,317$241,623$228,366$222,205$155,426
Ratio of operating expenses to average net assets1.40%* 1.40% 1.40% 1.40% 1.41% 1.41%
Ratio of net investment income (loss) to average
net assets 0.02%* 0.27% (0.17)%(0.30)% 0.22% 0.97%
Portfolio turnover rate 31% 63% 64% 74% 68% 56%
___________________________________________________________________________
___________________
*Adjusted to an annual basis.
**Total return does not reflect payment of a sales charge.
+For the six month period ended June 30, 1995, the annualized total
return is 38.91%.
</TABLE>
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.
The value of an annuity unit (assuming a 3.5 percent
investment rate) was $4.83 as of June 30, 1995,
$4.11 as of Dec. 31, 1994, $4.44 as of Dec. 31,
1993, $4.19 as of Dec. 31, 1992, $4.06 as of Dec.
31, 1991 and $2.80 as of Dec. 31, 1990. The value
of an annuity unit (assuming a 5 percent investment
rate) was $3.26 as of June 30, 1995, $2.80 as of
Dec. 31, 1994, $3.06 as of Dec. 31, 1993, $2.93 as
of Dec. 31, 1992, $2.88 as of Dec. 31, 1991 and
$2.02 as of Dec. 31, 1990.
PAGE
<TABLE>
<CAPTION>
____________________________________________________________
__________________
Investments in securities, June 30, 1995 (Unaudited)
____________________________________________________________
__________________
(Percentages represent value of investments compared to
total net assets)
Bonds
____________________________________________________________
__________________
Principal
Issuer amount Value(a)
____________________________________________________________
__________________<S> <C> <C>
U.S. government obligation (0.1%)
U.S. Treasury Bond, 7.25%, 05-15-16 $250,000 $265,595
(Cost: $240,380)
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Common stocks
____________________________________________________________
__________________Issuer Shares Value(a)
____________________________________________________________
__________________<S> <C> <C>
Airlines (1.4%)
Northwest Airlines 100,000(b) 3,537,500
____________________________________________________________
__________________Automotive related (0.9%)
Ford Motor 80,000 2,380,000
____________________________________________________________
__________________Banks and savings & loans (2.3%)
First Chicago 99,700 5,969,538
____________________________________________________________
__________________Beverages & tobacco (2.5%)
Coca-Cola 99,600 6,349,500
____________________________________________________________
__________________Building materials (0.9%)
Tyco Intl 45,000 2,430,000
____________________________________________________________
__________________Computers & office equipment (18.9%)
Cisco Systems 162,000(b) 8,191,125
Compaq Computer 150,000(b) 6,806,250
Computer Association Intl 100,000 6,775,000
Hewlett-Packard 50,600 3,769,700
Intuit 20,000(b) 1,520,000
Microsoft 60,000(b) 5,422,500
Oracle Systems 225,000(b) 8,690,625
Parametric Technology 68,800(b) 3,422.800
Softkey Intl 46,000(b) 1,466,250
Solectron 80,000(b) 2,730,000
___________
48,794,250
____________________________________________________________
__________________Electronics (5.4%)
Applied Materials 48,900(b) 4,235,963
Harman Intl 62,400 2,527,200
Intel 100,000 6,331,250
Maxim Intergrated Products 17,000(b) 867,000
Nexgen 1,500(b) 35,437
___________
13,996,850
____________________________________________________________
__________________Energy (1.5%)
Mobil 40,000 3,840,000
____________________________________________________________
__________________Energy equipment & services (1.0%)
Fluor 50,000 2,600,000
____________________________________________________________
__________________Financial services (2.1%)
First Financial Management 63,200 5,403,600
____________________________________________________________
__________________Foreign (10.6%)
Danka Business Systems ADR 135,000 3,265,312
Ericsson ADR 310,000 6,200,000
Magna Intl 60,300 2,660,737
Nokia Preferred 89,800 5,354,325
Royal Dutch Petroleum 42,300 5,155,313
Schlumberger 50,000 3,106,250
Teva Pharmaceutical ADR 40,000 1,500,000
___________
27,241,937
____________________________________________________________
__________________Health care (8.1%)
Arrow Intl 10,600 447,850
Forest Labs 44,300(b) 1,965,812
Johnson & Johnson 40,000 2,705,000
Medtronic 90,000 6,941,250
Pfizer 71,400 6,595,575
Stryker 60,000 2,302,500
___________
20,957,987
____________________________________________________________
__________________Health care services (3.8%)
HEALTHSOUTH 244,600(b) 4,249,925
Healthcare COMPARE 50,000(b) 1,500,000
MedPartners 1,300(b) 25,025
United Healthcare 98,500 4,075,438
___________
9,850,388
____________________________________________________________
__________________Household products (3.1%)
Duracell 79,600 3,442,700
Gillette 100,000 4,462,500
___________
7,905,200
____________________________________________________________
__________________Industrial machines & services (4.4%)
Caterpillar 80,000 5,140,000
Deere & Company 57,000 4,880,625
Sanifill 45,000(b) 1,411,875
__________
11,432,500
____________________________________________________________
__________________
Leisure time & entertainment (2.5%)
Promus 100,000 3,900,000
Walt Disney 45,000 2,503,125
___________
6,403,125
____________________________________________________________
__________________Metals (4.0%)
Alumax 36,100(b) 1,123,613
Birmingham Steel 150,800 2,789,800
Nucor Steel 120,000 6,420,000
____________
10,333,413
____________________________________________________________
__________________Multi-industry (2.9%)
Alco Standard 70,000 5,591,250
Manpower 68,500 1,746,750
____________
7,338,000
____________________________________________________________
__________________Restaurants & lodging (1.3%)
McDonald's 84,500 3,306,062
____________________________________________________________
__________________Retail (5.7%)
Best Buy 35,200(b) 937,200
Home Depot 157,300 6,390,313
Nordstrom 80,000 3,310,000
Office Depot 45,000(b) 1,265,625
Wal-Mart Stores 100,000 2,675,000
___________
14,578,138
____________________________________________________________
__________________Telecommunications equipment & services
(8.9%)
ADC Telecommunications 80,000(b) 2,860,000
Andrew 44,800(b) 2,592,800
Motorola 90,000 6,041,250
Scientific-Atlanta 100,000 2,200,000
StrataCom 40,000(b) 1,950,000
Tellabs 150,000(b) 7,218,750
___________
22,862,800
____________________________________________________________
__________________Utilities - telephone (2.7%)
AirTouch Communications 133,000(b) 3,790,500
MFS Communications 100,000(b) 3,225,000
___________
7,015,500
____________________________________________________________
__________________Total common stocks (94.9%)
(Cost: $165,933,846) $244,526,288
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Short-term securities
____________________________________________________________
__________________
Annualized
yield on
date of Principal
Issuer purchase amount Value(a)
____________________________________________________________
__________________<S> <C> <C> <C>
U.S. government & agency (0.3%)
FNMA Disc Nts
07-11-95 5.87%$ 700,000 $ 698,864
____________________________________________________________
__________________Commercial paper (4.3%)
Cafco, 07-28-95 5.99 1,300,000 1,294,179
Commerzbank US, 07-03-95 6.17 800,000 799,726
GE Capital Services, 07-14-95 5.97 3,200,000 3,193,136
Hewlett-Packard, 07-05-95 6.01 400,000 399,733
Kredietbank NA, 07-10-95 5.99 1,000,000 998,508
Safeco Credit, 07-17-95 5.98 4,300,000 4,288,629
___________
10,973,911
____________________________________________________________
__________________Letters of credit (0.9%)
Bank America-Hyundai
07-12-95 5.99 2,400,000 2,395,622
____________________________________________________________
__________________Total short-term securities (5.5%)
(Cost: $14,068,397) $ 14,068,397
____________________________________________________________
__________________Total investments in securities (100.5%)
(Cost: $180,242,623)(c) $258,860,280
____________________________________________________________
__________________
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)At June 30, 1995, the cost of securities for federal
income tax purposes was $180,242,623 and the aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $81,309,893
Unrealized depreciation (2,692,236)
____________________________________________________________
__________________Net unrealized appreciation $78,617,657
____________________________________________________________
__________________</TABLE>
PAGE
Managers and Officers
Board of Managers
Richard W. Kling
president, IDS Life Insurance Company
Carl N. Platou
president emeritus, Fairview Hospital and
Healthcare Services
Edward Landes
retired, former development consultant
Janis E. Miller
executive vice president, variable assets,
IDS Life Insurance Company
Gordon H. Ritz
president, Con Rad Broadcasting Corp.
Principal Officers
Richard W. Kling
chairman of the board and presidend
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
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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.
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:
American Express Trust Company
Minneapolis, Minn.
Sub-Custodian
First Bank National Association
St. Paul, Minn.
PAGE
Notes
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1995 SEMIANNUAL REPORT
IDS Life
Variable Annuity
Fund A
IDS Life Insurance Company
IDS Tower 10
Minneapolis, Minnesota 55440-0010
