PAGE
1995 Annual Report
IDS Life
Variable
Annuity
Fund A
Invests in a wide range of securities with the
objective
of long-term capital appreciation for contract
owners.
Managed by IDS Life Insurance Company
PAGE
Message from the Executive Vice President
(picture of Janis E. Miller)
Dear Contract Owner,
The record-high stock market in 1995 will be
hard to beat. It was a year in which the Dow
Jones Industrials hit a record 5,000 points and
finished at its highest ever one-year-point
gain. Because the performance of the stock
market drives this Fund, we can report very
good news for contract owners. To read more
about the specific gains in the Fund and
strategies for the future, please see the
letter from the Fund's portfolio manager.
Our economists project a positive outlook for
the stock market in 1996 as well, based on
their forecast of controlled inflation and
declining interest rates. Nevertheless, we must
repeat our first thought. Although we're
extremely pleased with the Fund's performance,
we can't predict a repeat of 1995's record
performance in 1996. Still, there is one solid
prediction that we can make based on history:
Financial markets will likely be volatile in
the short term. Moreover, because the Fund
emphasizes investments in stocks of rapidly
growing companies, it's somewhat more affected
by short-term market volatility than stocks in
general.
Such volatility is a fact of life. But history
also tells us that, in the long
run, the stock market has been a solid
performer. So we urge contract owners to
continue to take a long-term perspective, which
the structure of this Fund provides for you.
One way to benefit from short-term market
fluctuation is by making regular investments of
fixed amounts of money. This systematic
approach, called dollar-cost averaging,
smoothes the effects of stock market
volatility. Here's how:
- -You invest a fixed amount of money at regular
time periods.
- -Your fixed investment amount buys more
accumulations units when stock market prices
are low and buys fewer units when prices are
high.
- -Over time, if you continue to invest through
volatile markets, you obtain accumulation units
at a lower average cost than the general market
prices.
Dollar-cost averaging doesn't ensure a profit
or protect against a loss if the market
declines at the time you withdraw funds, but it
is an effective way for contract owners to meet
long-term goals, provided they continue
investing through changing market conditions.
If your contract allows additional payments,
you can dollar-cost average. And if your
contract has a fixed account, you can also set
up a systematic transfer program from the fixed
account to the variable account in order to
dollar-cost average, subject to certain
restrictions.
Your financial advisor can tell you more about
systematic investing and how it can help you
meet your financial objectives. He or she also
can help keep your investment strategies in
line with your financial objectives. As your
goals and time horizons change, talk to your
financial 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 protections 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.
A well-positioned portfolio and the strongest
stock market in 20 years made 1995 a very
profitable period for contract owners.
On Dec. 31, 1995, the accumulation unit value
of IDS Life Variable Annuity Fund A was $13.93,
compared with $10.27 at the beginning of the
year. The increase represented a gain of 35.64%
for the 12-month period. (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 last
year. The driving factors included an ongoing
low inflation rate, good-to-excellent corporate
profits and declining long-term interest rates
- -- an almost sure-fire formula for rising stock
prices. With those factors in place throughout
the year, the stock market mounted its
strongest annual advance since 1975.
To the particular benefit of this Fund, growth
stocks responded particularly well to the
positive environment. More specifically, stocks
of technology companies, especially those of
semiconductor producers, were at the forefront
of the market rally for much of the year.
Because they most often met our key investment
criterion of above-average profit growth,
technology companies comprised the largest
portion of the portfolio. Complementing the
gains by those issues were good performances by
health care and financial services stocks, to
which we also had considerable exposure. There
were a number of winners in other sectors as
well, including energy, retailing, metals,
food/beverage and telecommunications.
Consistent with the change in portfolio
managers that took place in the spring of 1995,
the Fund carried minimal cash reserves during
the period. This strategy also paid off in
improved Fund performance, as the return from
stocks far exceeded that generated by cash. The
low cash level will be an ongoing trait of the
Fund. While we expect this management 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 of this writing (mid-January), the
investment environment is little changed from a
year ago. The same could be said of this
portfolio. We remain invested in stocks of a
variety of companies that have demonstrated an
ability to grow at an above-average rate.
Regardless of what may be happening in the
market at any given time, over the long term we
expect this approach to continue to be
rewarding for the Fund and its contract owners.
We'll update you on our progress six months
from now in our semiannual report.
Mitzi Malevich
PAGE
<TABLE>
<CAPTION>
Ten Largest Holdings Dec. 31, 1995
______________________________________________________________________
______________
Percent of
Fund's
Common Stocks Value Net Assets
______________________________________________________________________
______________
<S> <C> <C>
Medtronic $10,057,500 3.54 %
A major, diversified medical device company.
Pfizer 8,996,400 3.16
Leading producer of pharmaceuticals, hospital products, animal health
items,
non-prescription medications and specialty chemicals.
Computer Association Intl 8,531,250 3.00
The largest vendor of non-microcomputer products in the software
industry.
Oracle Systems 8,475,000 2.98
One of the largest independent vendors of database-management software
offering a variety of new products, enhancements and applications
software.
Cisco Systems 7,462,500 2.62
The leading designer and builder of devices that link personal
computers in
powerful networks, Cisco is a leader in the fast-growing business
network market.
Coca-Cola 7,395,300 2.60
The world's largest producer and distributor of soft drinks,
concentrates and syrups.
First Chicago 7,128,051 2.51
A $50 billion Chicago-based bank holding company. Key businesses
include
nationwide credit card operations, retail and middle market activities
in Chicago and
Midwest states and nationwide corporate banking.
HEALTHSOUTH 7,123,975 2.50
A fast-growing chain of hospitals and outpatient centers.
Nucor Steel 6,855,000 2.41
One of the largest and most profitable domestic steel mini-mills,
Nucor Steel
is a leading producer of joist and girders used in construction.
First Data 6,702,747 2.36
The company operates in one business segment providing high-quality,
high volume
information processing and related services to specific client groups:
the transaction
card, payment instruments, teleservices, mutual fund, health care,
receivables and
information management industries.
______________________________________________________________________
_______________
Total $78,727,723 27.68%
______________________________________________________________________
_______________
Excludes short-term securities.
</TABLE>
PAGE
Investment Illustration
On the chart below you can see how IDS Life
Variable Annuity Fund A's total return compared
to the Standard & Poor's 500 Index (S&P 500), an
unmanaged list of common stocks, frequently used
as a general measure of market performance. In
comparing the Fund to the S&P, you should take
into account the fact that the Fund's
performance reflects an 8 percent total
sales and administrative charge, while no such
sales charge is reflected in the performance of
the S&P 500.
Investment performance of the Fund, after
charges, is reflected in the unit value
calculation. There are no dividend or capital
gain distributions, therefore, the assumed units
purchased would remain constanct throughout the
period.
How your $10,000 has grown in IDS Life Variable
Annuity Fund A
(picture of mountain chart)
[/TABLE]
[CAPTION]
1985 1986 1987 1988 1989 1990 1991 1992
1993 1994 1995
[S] [C] [C] [C] [C] [C] [C] [C]
[C] [C] [C]
$9,200 10,704 13,583 14,614 19,086 19,463 29,161 31,194 34,157
32,787 44,452
Dec. 31 Unit Value
$2.882 3.353 4.255 4.578 5.979 6.097 9.135 9.772
10.700 10.271 13.925
[/TABLE]
The above represents an assumed investment of
$10,000 into a single payment annuity contract
on Dec. 31, 1985. Values are calculated on Dec.
31 of each year. (No new contracts are currently
being sold).
Average Annual Total Return on Each of Three
Investments
Date of Investment Period investment
Average annual
investment held in years
total return
Dec. 31, 1985 10
+16.09%
Dec. 31, 1990 5
+16.01
Dec. 31, 1994 1
+24.73
The returns reflect the deduction of a sales and
administrative charge and mortality and expense
risk chareges.
Your investment and return values fluctuate so
that your accumulation units, when redeemed, may
be worth more or less than their original cost.
This was a period of fluctuating security
prices. Past performance is no guarantee of
future results.
PAGE
Annual Financial Information
_______________________________________________
______________Report of Independent Auditors
The Board of Managers and Contract Owners
IDS Life Variable Annuity Fund A:
We have audited the accompanying statement of
assets, liabilities and contract owners' equity
of IDS Life Variable Annuity Fund A, including
the schedule of investments in securities, as
of December 31, 1995, the related statement of
operations for the year then ended, the
statement of changes in contract owners' equity
for each of the two years in the period then
ended, and the selected per unit data and
ratios presented under "Financial highlights"
for each of the five years in the period then
ended. These financial statements and per unit
data and ratios are the responsibility of the
Fund's management. Our responsibility is to
express an opinion on these financial
statements and per unit data and ratios based
on our audits.
We conducted our audits in accordance with
generally accepted auditing standards. Those
standards require that we plan and perform the
audit to obtain reasonable assurance about
whether the financial statements and per unit
data and ratios are free of material
misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts
and disclosures in the financial statements.
Our procedures included confirmation of
investments owned at December 31, 1995, by
correspondence with the custodian and brokers.
An audit also includes assessing the accounting
principles used and significant estimates made
by management, as well as evaluating the
overall financial statement presentation. We
believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and
selected per unit data and ratios referred to
above present fairly, in all material respects,
the financial position of IDS Life Variable
Annuity Fund A at December 31, 1995, the
results of its operations for the year then
ended, the changes in its contract owners'
equity for each of the two years in the period
then ended, and the selected per unit data and
ratios for each of the five years in the period
then ended in conformity with generally
accepted accounting principles.
Ernst & Young LLP
Minneapolis, Minnesota
February 1, 1996
PAGE
<TABLE>
<CAPTION>
____________________________________________________________
__________________
Statement of Assets, Liabilities and Contract Owners' EquityDec. 31, 1995
Assets
____________________________________________________________
__________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost, $193,137,140) $284,213,206
Cash in bank on demand deposit 42,796
Dividends and interest receivable 213,730
Receivable from IDS Life Insurance Company
for contract purchase payments 25,980
____________________________________________________________
__________________
Total assets $284,495,712
____________________________________________________________
__________________
Liabilities
____________________________________________________________
__________________
Payable for contract terminations $ 77,421
Payable to IDS Life Insurance Company for:
Mortality and expense assurance fee 7,743
Investment management fee 3,097
____________________________________________________________
__________________
Total liabilities 88,261
____________________________________________________________
__________________
Contract owners'
equity
____________________________________________________________
__________________
Contracts in accumulation period - 20,131,589 units at
$13.93 per unit (Note 5) 280,335,672
Contracts in payment period - 12,053 annuity units 4,071,779
____________________________________________________________
__________________
Total contract owners' equity 284,407,451
____________________________________________________________
__________________
Total liabilities and contract owners' equity $284,495,712
____________________________________________________________
__________________
See accompanying notes to financial statements.
PAGE
____________________________________________________________
__________________
Statement of Operations Year ended Dec. 31, 1995
Investment loss - net
____________________________________________________________
__________________
Income:
Dividends (net of foreign taxes withheld of $50,920)$2,099,109
Interest 995,862
____________________________________________________________
__________________
Total income 3,094,971
____________________________________________________________
__________________
Expenses:
Mortality and expense assurance fee (Note 2) 2,556,131
Investment management fee (Note 3) 1,022,508
____________________________________________________________
__________________
Total expenses 3,578,639
____________________________________________________________
__________________
Investment loss - net (483,668)
____________________________________________________________
__________________
Realized and unrealized gain (loss) on investments - net
____________________________________________________________
__________________
Net realized gain on investments 29,842,830
Net change in unrealized appreciation or depreciation of
investments 47,660,510
____________________________________________________________
__________________
Net gain on investments 77,503,340
____________________________________________________________
__________________
Net increase in contract owners' equity from operations$77,019,672
____________________________________________________________
__________________
See accompanying notes to financial statements.
</TABLE>
PAGE
<TABLE>
<CAPTION>
____________________________________________________________
__________________
Statement of Changes in Contract Owners' Equity
Year endedYear ended
Dec. 31, 1995Dec. 31, 1994
Operations
____________________________________________________________
__________________
<S> <C> <C>
Investment income (loss)- net $ (483,668)$ 639,660
Net realized gain on investments 29,842,830 13,002,716
Net change in unrealized appreciation or depreciation
of investments 47,660,510(23,165,263)
____________________________________________________________
__________________
Net increase (decrease) in contract owners' equity
from operations 77,019,672 (9,522,887)
____________________________________________________________
__________________
Contract
Transactions
____________________________________________________________
__________________
Net contract purchase payments (Note 2) 2,190,650 2,165,599
Repayment of temporary withdrawals 42,408 24,168
Net transfers from (to) fixed annuities(1,019,455) 1,676,784
Actuarial adjustment for mortality assurance on
annuities in payment period (Note 2) (52,294) (29,415)
Contract termination payments and temporary withdrawals(16,542,000) (12,113,259)
Annuity payments (548,310) (507,179)
____________________________________________________________
__________________
Net decrease from contract transactions(15,929,001)(8,783,302)
____________________________________________________________
__________________
Net increase (decrease) in contract owners' equity 61,090,671 (18,306,189)
____________________________________________________________
__________________
Contract owners' equity at beginning of year223,316,780241,622,969
____________________________________________________________
__________________
Contract owners' equity at end of year$284,407,451$223,316,780
____________________________________________________________
__________________
See accompanying notes to financial statements.
</TABLE>
PAGE
Notes to Financial Statements
___________________________________________
______________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 year ended Dec. 31, 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 Dec. 31, 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 year ended Dec. 31, 1995, the
Fund did not buy or sell stock index
futures contracts and related options.
There were no stock index futures contracts
outstanding at Dec. 31, 1995.
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 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 Dec. 31,
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
$91,903 in 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 $109,604,744 and
$120,350,253 for the year ended Dec. 31,
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 $7,673 for
the year ended Dec. 31, 1995.
___________________________________________
______________5. Accumulation units
The changes in number of outstanding units
applicable to contracts in the accumulation
period were as follows:
<TABLE>
<CAPTION>
Year ended Year ended
Dec. 31, 1995Dec. 31, 199
4
_______________________________________________________
_________________<S> <C>
<C>
Units outstanding at beginning of year21,424,89922,264,
611
Additions for contract purchase payments and
repayments 183,435 208,512
Net transfers from (to) fixed annuities(89,922) 157,132
Deductions for contract terminations and withdrawals(1,
386,823) (1,205,356)
_______________________________________________________
_________________Units outstanding at end of year20,131
,589 21,424,899
_______________________________________________________
_________________</TABLE>
6. Financial highlights
The table below shows certain important
financial information for evaluating the
Fund's results.
<TABLE>
<CAPTION> Year
ended Dec. 31,
___________________________________________________________________________
______________________
1995 1994 1993 1992 1991
___________________________________________________________________________
______________________<S> <C> <C> <C> <C> <C>
Accumulation unit value at beginning of year$10.27$10.70$ 9.77 $9.13 $6.10
___________________________________________________________________________
______________________
Income from investment operations:
Net investment income (loss) (.02) .03 (.02) (.03) .02
Net gains (losses) on securities, both realized
and unrealized 3.68 (0.46) 0.95 0.67 3.01
___________________________________________________________________________
______________________Total from investment operations3.66(0.43) 0.93 0.64 3.03
___________________________________________________________________________
______________________Accumulation unit value at end of year$13.93$10.27$10.70 $9.77 $9.13
___________________________________________________________________________
______________________Total Return*35.64%(4.01)% 9.50% 6.97% 49.83%
___________________________________________________________________________
______________________Ratios/Supplemental Data
Total contract owner's equity at end of year
(000 omitted) $284,407$223,317$241,623$228,366$222,205
Ratio of operating expenses to average net assets 1.40% 1.40% 1.40% 1.40% 1.41%
Ratio of net investment income (loss) to average
net assets (0.19)% 0.27% (0.17)%(0.30)% 0.22%
Portfolio turnover rate 46% 63% 64% 74% 68%
______________________________________________________________________
____________________
</TABLE>
*Total return does not reflect payment of a sales charge.
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 $5.39 as
of Dec. 31, 1995, $4.11 as of Dec. 31,
1994, $4.44 as of Dec. 31, 1993, $4.19 as
of Dec. 31, 1992 and $4.06 as of Dec. 31,
1991. The value of an annuity unit
(assuming a 5 percent investment rate) was
$3.61 as of Dec. 31, 1995, $2.80 as of Dec.
31, 1994, $3.06 as of Dec. 31, 1993, $2.93
as of Dec. 31, 1992 and $2.88 as of Dec.
31, 1991.
PAGE
<TABLE>
<CAPTION>
____________________________________________________________
__________________
Investments in Securities, Dec. 31, 1995
____________________________________________________________
__________________
(Percentages represent value of investments compared to
total net assets)
Bond
____________________________________________________________
__________________
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 $285,472
(Cost: $240,477)
____________________________________________________________
__________________
Common stocks
____________________________________________________________
__________________Issuer Shares Value(a)
____________________________________________________________
__________________Airlines (1.4%)
Northwest Airlines 75,000(b) $ 3,825,000
____________________________________________________________
__________________Automotive Related (0.8%)
Ford Motor 80,000 2,320,000
____________________________________________________________
__________________Banks and Savings & Loans (2.5%)
First Chicago 180,457 7,128,051
____________________________________________________________
__________________Beverages & Tobacco (2.6%)
Coca-Cola 99,600 7,395,300
____________________________________________________________
__________________Building Materials (1.1%)
Tyco Intl 90,000 3,206,250
____________________________________________________________
__________________Computers & Office Equipment (20.1%)
Cisco Systems 100,000(b) 7,462,500
Compaq Computer 100,000(b) 4,800,000
Computer Association Intl 150,000 8,531,250
First Data 100,228 6,702,747
Hewlett-Packard 50,600 4,237,750
Intuit 40,000(b) 3,120,000
Microsoft 35,000(b) 3,071,250
Oracle Systems 200,000(b) 8,475,000
Parametric Technology 68,800(b) 4,575,200
Softkey Intl 120,000(b) 2,775,000
Solectron 80,000(b) 3,530,000
___________
57,280,697
____________________________________________________________
__________________Electronics (6.3%)
Applied Materials 97,800(b) 3,850,875
AVX 64,700 1,714,550
Harman Intl 65,520 2,628,990
Intel 60,000 3,405,000
MEMC Electronic Materials 107,500(b) 3,507,187
Maxim Intergrated Products 70,000(b) 2,695,000
_____________
17,801,602
____________________________________________________________
__________________Energy (1.6%)
Mobil 40,000 4,480,000
____________________________________________________________
__________________Energy Equipment & Services (1.2%)
Fluor 50,000 3,300,000
____________________________________________________________
__________________Foreign (8.4%)
Danka Business Systems ADR 135,000 4,995,000
Ericsson ADR 250,000 4,875,000
Magna Intl 60,300 2,607,975
Royal Dutch Petroleum 42,300 5,969,588
Schlumberger 50,000 3,462,500
Teva Pharmaceutical ADR 40,000 1,855,000
___________
23,765,063
____________________________________________________________
__________________Health Care (12.4%)
Amgen 60,000(b) 3,562,500
Boston Scientific 120,000(b) 5,880,000
Johnson & Johnson 40,000 3,425,000
Medtronic 180,000 10,057,500
Perclose 6,000(b) 114,750
Pfizer 142,800 8,996,400
Stryker 60,000 3,150,000
___________
35,186,150
____________________________________________________________
__________________Health Care Services (6.3%)
HEALTHSOUTH 244,600(b) 7,123,975
Healthcare COMPARE 100,000(b) 4,350,000
United Healthcare 98,500 6,451,750
___________
17,925,725
____________________________________________________________
__________________Household Products (1.7%)
Duracell 79,600 4,119,300
Sola Intl 30,000(b) 757,500
___________
4,876,800
____________________________________________________________
__________________Industrial Machines & Services (4.8%)
Caterpillar 80,000 4,700,000
Deere & Company 171,000 6,027,750
Sanifill 90,000(b) 3,003,750
__________
13,731,500
____________________________________________________________
__________________Insurance (0.6%)
Risk Capital Holdings 75,200(b) 1,757,800
____________________________________________________________
__________________Leisure Time & Entertainment (2.9%)
Mattel 100,000 3,075,000
Walt Disney 90,000 5,310,000
___________
8,385,000
____________________________________________________________
__________________Metals (3.2%)
Birmingham Steel 150,800 2,243,150
Nucor Steel 120,000 6,855,000
___________
9,098,150
____________________________________________________________
__________________Multi-industry (2.9%)
Alco Standard 140,000 6,387,500
Manpower 68,500 1,926,563
____________
8,314,063
____________________________________________________________
__________________Restaurants & Lodging (1.3%)
McDonald's 84,500 3,813,063
____________________________________________________________
__________________Telecommunications Equipment & Services
(6.4%)
ADC Telecommunications 80,000(b) 2,920,000
Andrew 6,800(b) 2,478,600
Motorola 75,000 4,275,000
StrataCom 40,000(b) 2,940,000
Tellabs 150,000(b) 5,550,000
___________
18,163,600
____________________________________________________________
__________________Textiles & Apparel (1.2%)
Nike Cl B 50,000 3,481,250
____________________________________________________________
__________________Utilities - Telephone (3.7%)
AirTouch Communications 133,000(b) 3,757,250
MFS Communications 125,000(b) 6,656,250
___________
10,413,500
____________________________________________________________
__________________Total Common Stocks (93.4%)
(Cost: $174,615,901) $265,648,564
____________________________________________________________
__________________</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 (1.2%)
Federal Home Loan Mtge Corp
Disc Nts
01-22-96 5.50% $3,300,000 $ 3,288,446
____________________________________________________________
__________________Commercial Paper (4.2%)
AT&T
01-02-96 6.00 1,500,000 1,499,250
CPC Intl
01-23-96 5.78 500,000(c) 498,083
Fleet Funding
02-02-96 5.68 1,625,000(c) 1,616,329
Ford Motor Credit
01-05-96 5.92 5,000,000 4,995,067
Southern California Gas
01-25-96 5.75 3,400,000 3,384,412
___________
11,993,141
____________________________________________________________
__________________Letter of credit (1.0%)
Bank of America
AES Barberspoint
1-04-96 5.81 3,000,000 2,997,583
____________________________________________________________
__________________Total Short-term Securities (6.4%)
(Cost: $18,280,762) $ 18,279,170
____________________________________________________________
__________________Total Investments in Securities (99.9%)
(Cost: $193,137,140)(d) $284,213,206
____________________________________________________________
__________________
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)At Dec. 31, 1995, the cost of securities for federal
income tax purposes was $193,136,975 and the aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $95,064,548
Unrealized depreciation (3,988,317)
____________________________________________________________
__________________Net unrealized appreciation $91,076,231
____________________________________________________________
__________________</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 president
Morris Goodwin, Jr.
vice president and treasurer
Lorraine R. Hart
vice president, investments
William A. Stoltzmann
general counsel and assistant secretary
Timothy S. Meehan
secretary
Additional Information
The investment objective of IDS Life Variable Annuity Fund A
is to invest in securities that 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
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:
American Express Trust Company,
Minneapolis, Minn.
Sub-Custodian:
First Bank National Association
St. Paul, Minn.
