IDS Life
Variable
Annuity
Fund A
Invests in a wide range of securities with the objective of long-term capital
appreciation for contract owners.
1999 ANNUAL REPORT
AMERICAN EXPRESS Financial Advisors
Managed by IDS Life Insurance Company
<PAGE>
(picture of) Pamela J. Moret
Pamela J. Moret
Executive Vice President
Message from the Executive Vice President
If you're an experienced investor, you know that the past 12 months was a
volatile period in many financial markets. But history tells us that substantial
market moves -- either up or down -- are nothing new and are often
unpredictable.
The potential for such volatility reinforces the need for investors to
periodically review their long-term financial goals and examine whether their
investment program remains on track to achieving them. Your quarterly investment
statements are one part of that monitoring process. The other is a meeting with
your American Express financial advisor. That becomes even more important if
there's a major change in your financial situation or in the financial markets.
I also want to let you know that, beginning in 2000, this Fund has a new
portfolio manager. She is Anne Obermeyer, who replaces the retiring Mitzi
Malevich. Like Mitzi, Anne is an experienced manager, and she intends to follow
the same investment approach that Mitzi used so successfully during her tenure.
Pamela J. Moret
Executive Vice President, Variable Assets
IDS Life Insurance Company
<PAGE>
(picture of) Mitzi Malevich
Mitzi Malevich
From Your Portfolio Manager: A Perspective
Despite considerable volatility, the past fiscal year (January through December
1999) was a very productive one for the U.S. stock market and the Fund.
On Dec. 31, 1999, the accumulation unit value of IDS Life Variable Annuity Fund
A was $32.26, compared with $24.53 at the beginning of the year. The increase
represented a gain of 31.51% for the 12 months. (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 Fund's prospectus.)
Spurred largely by three reductions in short-term interest rates by the Federal
Reserve Board (the Fed) in late 1998, the stock market was surging when the
period began. Illustrating the strength of the rally, the Fund gained nearly 10%
in January alone. Although a run-up in long-term interest rates sent the market
into retreat during February, it quickly mounted a fresh advance that
established an all-time high by mid-summer.
At that point, the Fed evidently decided that the risk of higher inflation was
getting too great, because, in late June, it increased short-term interest rates
to relieve the potential inflation pressure. That was followed by another rate
increase in August.
Not surprisingly, the rate hikes resulted in a stock-market slump, which lasted
into the fall. But once again the market displayed remarkable resilience by
rallying powerfully during the final three months of the year, shrugging off a
third Fed rate increase in November in the process.
For the most part, the market's gains during the year were again driven by a
relatively small number of large-capitalization growth stocks. Because such
issues form the core of the Fund's investments, the trend continued to work to
the Fund's advantage.
As has been the case for some time, technology-related stocks comprised the
greatest area of investment for the Fund, and, although they were highly
volatile, they did make the biggest contribution to performance. This was
especially true during the fourth quarter, when the technology sector registered
exceptionally strong gains. Most of the rest of the portfolio was invested in
consumer stocks, including health care and retailing issues, and financial
services stocks. On the whole, they experienced mixed results.
On a personal note, this report coincides with the end of my tenure as the
Fund's portfolio manager. In January 2000, I retired from the investment
business and turned over the management of the Fund to Anne Obermeyer, in whose
capable hands I'm sure the Fund will prosper. It has been my pleasure and
privilege to work on your behalf during the past several years, and I sincerely
hope the years ahead will prove rewarding for you.
Mitzi Malevich
<PAGE>
The 10 Largest Holdings
Percent Value
(of net assets) (as of Dec. 31, 1999)
Cisco Systems 8.46% $41,778,749
Tellabs 7.80 38,512,500
EMC 6.64 32,775,000
Microsoft 6.62 32,690,000
Applied Materials 5.02 24,780,075
MCI WorldCom 4.83 23,878,125
Intl Business Machines 4.37 21,600,000
Intel 4.00 19,755,000
Nokia Oyj ADR Cl A 3.85 19,000,000
Citigroup 2.95 14,585,156
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
(icon of) pie chart
The 10 holdings listed here
make up 54.54% of net assets
<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 500, 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 constant throughout the
period.
How $10,000 has grown in IDS Life Variable Annuity Fund A
$50,000
S&P 500 Index X
X Fund A
$40,000 Annuity Value
$30,000
$20,000
$10,000
X
X
$9,200
'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99
Dec. 31
Unit Value
$9,200 9,382 14,117 15,036 16,465 15,803 21,426 26,214 32,168 37,749 49,636
$5.979 6.097 9.135 9.772 10.700 10.271 13.925 17.038 20.906 24.534 32.260
The above represents an assumed investment of $10,000 into a single payment
annuity contract on Dec. 31, 1989. 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
Period Fund A
Date of investment Annuity
investment held in years: Value
Dec. 31, 1989 10 +17.38%
Dec. 31, 1994 5 +23.64%
Dec. 31, 1998 1 +20.97%
The returns reflect the deduction of a sales and administrative charge and
mortality and expense risk charges.
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, 1999, the related statement of
operations for the year then ended, the statements 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 auditing standards generally accepted
in the United States. 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 as of December 31, 1999, by correspondence with the custodian. 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 as of December 31, 1999, 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 accounting principles generally accepted in the United
States.
Ernst & Young LLP
Minneapolis, Minnesota
February 4, 2000
<PAGE>
<TABLE>
<CAPTION>
Statement of assets, liabilities and contract owners' equity
IDS Life Variable Annuity Fund A
Dec. 31, 1999
Assets
Investments in securities, at value (Note 1)
<S> <C>
(identified cost, $185,193,511) $493,729,211
Cash in bank on demand deposit 14,512
Dividends and interest receivable 101,011
Receivable from IDS Life Insurance Company for contract purchase payments 14,067,918
----------
Total assets $507,912,652
============
Liabilities
Payable for contract terminations $ 13,927,624
Payable to IDS Life Insurance Company for:
Mortality and expense assurance fee 6,924
Investment management fee 11,878
------
Total liabilities $ 13,946,426
------------
Contract owners' equity
Contracts in accumulation period-- 15,045,073 units at $32.26 per unit (Note 5) $485,361,233
Contracts in payment period 8,604,993
---------
Total contract owners' equity 493,966,226
-----------
Total liabilities and contract owners' equity $507,912,652
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of operations
IDS Life Variable Annuity Fund A
Year ended Dec. 31, 1999
Investment income (loss) -- net Income:
<S> <C>
Dividends $ 1,958,336
Interest 1,185,416
---------
Total income 3,143,752
---------
Expenses:
Mortality and expense assurance fee (Note 2) 4,513,936
Investment management fee (Note 3) 1,805,670
---------
Total expenses 6,319,606
---------
Investment income (loss) -- net (3,175,854)
----------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on investments 22,913,270
Net change in unrealized appreciation (depreciation) on investments 103,607,534
-----------
Net gain (loss) on investments 126,520,804
-----------
Net increase (decrease) in contract owners' equity from operations $123,344,950
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statements of changes in contract owners' equity
IDS Life Variable Annuity Fund A
Year ended Dec. 31, 1999 1998
Operations
<S> <C> <C>
Investment income (loss)-- net $ (3,175,854) $ (2,466,330)
Net realized gain (loss) on investments 22,913,270 29,234,208
Net change in unrealized appreciation (depreciation) on investments 103,607,534 35,513,564
----------- ----------
Net increase (decrease) in contract owners' equity from operations 123,344,950 62,281,442
----------- ----------
Contract transactions
Net contract purchase payments (Note 2) 1,522,089 1,715,061
Repayment of temporary withdrawals 10,586 25,885
Net transfers from (to) fixed annuities (1,386,918) (3,139,872)
Contract termination payments and temporary withdrawals (35,426,811) (32,599,118)
Annuity payments (1,084,383) (849,610)
---------- --------
Net increase (decrease) from contract transactions (36,365,437) (34,847,654)
----------- -----------
Net increase (decrease) in contract owners' equity 86,979,513 27,433,788
---------- ----------
Contract owners' equity at beginning of year 406,986,713 379,552,925
----------- -----------
Contract owners' equity at end of year $493,966,226 $406,986,713
============ ============
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:
Use of estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net assets from
operations during the period. Actual results could differ from those estimates.
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, 1999, 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 as of Dec. 31, 1999.
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, 1999, the Fund did not buy or sell stock index
futures contracts and related options. There were no stock index futures
contracts outstanding as of Dec. 31, 1999.
Foreign currency translations and foreign currency contracts
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. 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.
There were no forward foreign currency exchange contracts outstanding as of Dec.
31, 1999.
Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for
Derivative Instruments and Hedging Activities SFAS 133 establishes accounting
and reporting standards for derivative instruments. It requires that an entity
recognize all derivatives as either assets or liabilities in the statement of
financial position and measure them at fair value. SFAS 133 is effective for the
Fund Jan. 1, 2000. The adoption of this statement is not expected to have a
material effect on the Fund's financial condition or results of operations.
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% 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 $64,515 for the year ended Dec. 31, 1999
and $72,458 for the year ended Dec. 31, 1998. 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.
<PAGE>
<TABLE>
<CAPTION>
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% 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 $21,448,818 and $87,628,536 for the year ended Dec. 31,
1999. Net realized gain on investments has been determined on the basis of
identified costs.
5. ACCUMULATION UNITS
The changes in number of outstanding units applicable to contracts in the
accumulation period were as follows:
Year ended Year ended
Dec. 31, 1999 Dec. 31, 1998
<S> <C> <C>
Units outstanding at beginning of year 16,299,010 17,871,071
Additions for contract purchase payments and repayments 54,334 78,469
Net transfers from (to) fixed annuities (48,888) (145,269)
Deductions for contract terminations and withdrawals (1,259,383) (1,505,261)
---------- ----------
Units outstanding at end of year 15,045,073 16,299,010
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
6. FINANCIAL HIGHLIGHTS
The table below shows certain important financial information for evaluating the
Fund's results.
Fiscal year ended Dec. 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
Accumulation unit value at beginning of year $24.53 $20.91 $17.04 $13.93 $10.27
Income from investment operations:
Net investment income (loss) (.20) (.14) (.12) (.07) (.02)
Net gains (losses)(both realized and unrealized) 7.93 3.76 3.99 3.18 3.68
Total from investment operations 7.73 3.62 3.87 3.11 3.66
Accumulation unit value at end of year $32.26 $24.53 $20.91 $17.04 $13.93
Total returna 31.51% 17.31% 22.71% 22.33% 35.64%
Ratios/supplemental data
Total contract owner's equity at end of year
(000 omitted) $493,966 $406,987 $379,553 $327,778 $284,407
Ratio of operating expenses to average daily net assets 1.40% 1.40% 1.40% 1.40% 1.40%
Ratio of net investment income (loss)
to average daily net assets (.71%) (.63%) (.62%) (.43%) (.19%)
Portfolio turnover rate 5% 19% 33% 13% 46%
a 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 contract holders are paying into the Fund they are called
"accumulation" units. When contract owners begin to receive the annuity, they
change to "annuity" units.
The value of an annuity unit (assuming a 3.5% investment rate) was $10.88 as of
Dec. 31, 1999, $8.56 as of Dec. 31, 1998, $7.55 as of Dec. 31, 1997, $6.37 as of
Dec. 31, 1996 and $5.39 as of Dec. 31, 1995. The value of an annuity unit
(assuming a 5% investment rate) was $6.88 as of Dec. 31, 1999, $5.49 as of Dec.
31, 1998, $4.92 as of Dec. 31, 1997, $4.21 as of Dec. 31, 1996 and $3.61 as of
Dec. 31, 1995.
</TABLE>
<PAGE>
7. YEAR 2000 (UNAUDITED)
The Year 2000 issue is the result of computer programs having been written using
two digits rather than four to define a year. Any programs that have
time-sensitive software may recognize a date using "00" as the year 1900 rather
than 2000. This could result in the failure of major systems or miscalculations,
which could have a material impact on the operations of the Fund. All of the
major systems used by the Fund are maintained by AEFC and are utilized by
multiple subsidiaries and affiliates of AEFC. The Fund's businesses are heavily
dependent upon AEFC's computer systems and have significant interaction with
systems of third parties.
A comprehensive review of AEFC's computer systems and business processes,
including those specific to the Fund, was conducted to identify the major
systems that could be affected by the Year 2000 issue. Steps were taken to
resolve potential problems including modification to existing software and the
purchase of new software. As of Dec. 31, 1999, AEFC had completed its program of
corrective measures on its internal systems and applications, including Year
2000 compliance testing. As of Dec. 31, 1999, AEFC had also completed an
evaluation of the Year 2000 readiness of other third parties whose system
failures could have an impact on the Fund's operations.
AEFC's Year 2000 project also included establishing Year 2000 contingency plans
for all key business units. Business continuation plans, which address business
continuation in the event of a system disruption, are in place for all key
business units. At Dec. 31, 1999, these plans had been amended to include
specific Year 2000 considerations.
In assessing its Year 2000 initiatives and the results of actual production
since Jan. 1, 2000, management believes no material adverse consequences were
experienced, and there was no material effect on the Fund's business, results of
operations, or financial condition as a result of the Year 2000 issue.
<PAGE>
<TABLE>
<CAPTION>
Investments in Securities
IDS Life Variable Annuity Fund A
Dec. 31, 1999
(Percentages represent value of investments compared to net assets)
Common stocks (93.0%)
Issuer Shares Value(a)
Banks and savings & loans (2.4%)
<S> <C> <C>
FleetBoston Financial 94,752 $3,298,554
Washington Mutual 330,000 8,580,000
Total 11,878,554
Beverages & tobacco (2.3%)
Coca-Cola
199,200 11,603,400
Communications equipment & services (21.7%)
Andrew Corp 130,000(b) 2,461,875
Cisco Systems 390,000(b) 41,778,749
MasTec 120,000(b) 5,340,000
Nokia Oyj ADR Cl A 100,000(c) 19,000,000
Tellabs 600,000(b) 38,512,500
Total 107,093,124
Computers & office equipment (19.2%)
EMC 300,000(b) 32,775,000
Intl Business Machines 200,000 21,600,000
Microsoft 280,000(b) 32,690,000
Solectron 80,000(b) 7,610,000
Total 94,675,000
Electronics (14.7%)
Applied Materials 195,600(b) 24,780,075
Intel 240,000 19,755,000
Maxim Integrated Products 280,000(b) 13,212,500
Texas Instruments 150,000 14,531,250
Total 72,278,825
Energy (2.1%)
Anadarko Petroleum 300,000 10,237,500
Energy equipment & services (3.2%)
Halliburton 160,000 6,440,000
Schlumberger 150,000 8,437,500
Transocean Sedco Forex 29,040 978,285
Total 15,855,785
Financial services (6.1%)
Associates First Capital Cl A 200,000 5,487,500
Citigroup 262,500 14,585,156
Merrill Lynch & Co 120,000 10,020,000
Total 30,092,656
Health care (7.2%)
Guidant 300,000 14,100,000
Medtronic 140,000 5,101,250
Pfizer 360,000 11,677,500
Warner-Lambert 60,000 4,916,250
Total 35,795,000
Household products (0.8%)
ServiceMaster 340,050 4,186,866
Industrial equipment & services (1.5%)
Deere & Co 171,000 7,417,125
Insurance (1.9%)
American Intl Group 87,500 9,460,938
Multi-industry conglomerates (2.8%)
Tyco Intl 360,000(c) 13,995,000
Utilities -- telephone (7.1%)
MCI WorldCom 450,000(b) 23,878,125
Sprint 120,000 8,077,500
Sprint PCS 30,000(b) 3,075,000
Total 35,030,625
Total common stocks
(Cost: $151,063,986) $459,600,398
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bond (0.1%)
Issuer Coupon Principal Value(a)
rate amount
U.S. government obligation
U.S. Treasury
<S> <C> <C> <C>
05-15-16 7.25% $250,000 $261,481
Total bond
(Cost: $241,403) $261,481
Short-term securities (6.9%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
U.S. government agencies (6.6%)
Federal Home Loan Bank Disc Nt
02-02-00 5.55% $1,300,000 $1,292,573
Federal Home Loan Mtge Corp Disc Nts
01-12-00 5.49 14,000,000 13,970,051
01-18-00 5.60 3,300,000 3,289,753
02-04-00 5.60 6,000,000 5,963,252
Federal Natl Mtge Assn Disc Nts
01-28-00 5.61 3,700,000 3,682,184
02-04-00 5.62 4,400,000 4,373,638
Total 32,571,451
Commercial paper (0.3%)
Salomon Smith Barney
02-03-00 5.96 500,000 497,130
World Bank Disc Nts
01-11-00 5.65 800,000 798,751
Total 1,295,881
Total short-term securities
(Cost: $33,888,122) $33,867,332
Total investments in securities
(Cost: $185,193,511)(d) $493,729,211
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. As of Dec. 31, 1999, the
value of foreign securities represented 6.68% of net assets.
(d) At Dec. 31, 1999, the cost of securities for federal income tax purposes was
$185,192,421 and the aggregate gross unrealized appreciation and depreciation
based on that cost was:
Unrealized appreciation $316,401,050
Unrealized depreciation (7,864,260)
----------
Net unrealized appreciation $308,536,790
<PAGE>
MANAGERS AND OFFICERS
Board of Managers
Gumer C. Alvero
vice president, American Express Financial Corporation
Rodney P. Burwell
chairman, Xerxes Corporation (fiberglass storage tanks)
Jean B. Keffeler
independent management consultant
Richard W. Kling
chairman of the board and president
Thomas R. McBurney
president, McBurney Management Advisors
Principal Officers
Besides Mr. Kling, who is president, the Fund's other officers are:
Lorraine R. Hart
vice president, investments
Jeffrey S. Horton
vice president and treasurer
Timothy S. Meehan secretary
William A. Stoltzmann
general counsel and assistant secretary
Philip C. Wentzel
controller
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ADDITIONAL INFORMATION
The investment objective of IDSLife 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 IDSLife.
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 IDSLife 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:
IDSLife Insurance Company,
Minneapolis, Minn.
Custodian:
American Express Trust Company
Minneapolis, Minn.
Sub-Custodian:
Bank of New York
New York, New York
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IDS Life
Variable
Annuity
Fund A
1999 ANNUAL REPORT
S-6447 P (2/00)
Bulk Rate
U.S. POSTAGE
PAID
Permit No. 85
Spencer, IA
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440-0010
AMERICAN EXPRESS Financial Advisors
