PAGE IDS Life Variable Annuity Fund B
Message from the Executive Vice President
(picture of Janis E. Miller)
Dear Contract Owner,
A weak stock market and an unfavorable environment
for growth stocks resulted in a negative return for
contract owners during the first half of the fiscal
year. This makes the first interruption in the
fund's positive performance pattern in recent
years. For details on the period and an investment
outlook, please review the letter from the fund's
portfolio manager and his team on the following
page.
The stock market's ongoing fluctuations reinforce
the fact that a focus on long-term financial
objectives is an especially important guideline in
today's investment environment. The fund's
approach of investing for the long term in high-
quality growth stocks has benefited contract owners
in the past and, despite short-term movements in
the market, should continue to be beneficial in the
future.
One way to benefit from short-term market movements
is by making regular investments of fixed amounts
of money in an investment that is expected to grow
in value over time. This systematic approach,
called dollar-cost averaging, smoothes 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 restrictions, if your contract has a
fixed account, you also can establish a systematic
transfer program from the fixed account to the
variable account. In essence, you may take
advantage of market fluctuations by purchasing more
accumulation units when the price is low and fewer
units when the price is high. This may help you
achieve what every investor wants: to buy at the
lowest average price. While dollar-cost averaging
does not ensure a profit and does not protect
against a loss if the market declines, it is an
effective way for many contract owners who continue
investing through changing market conditions to
obtain accumulation units at a lower average cost
to meet long-term goals.
Your IDS personal financial planner can tell you
more about systematic investing and how it can help
you meet your financial objectives. Your planner
also can help you make sure your investment
strategies continue to meet the objectives in your
financial plan. As your objectives and time
horizons change, talk to your planner about the
broad range of IDS and IDS Life products and
services designed to help you meet a variety of
investment and protection needs.
Sincerely,
Janis E. Miller
Executive Vice President, Variable Assets
IDS Life Insurance Company
PAGE IDS Life Variable Annuity Fund B
From Your Portfolio Manager: A Perspective
(picture of Gordon Fines)
Gordon Fines leads the management team for IDS Life
Variable Annuity Fund B. He also manages IDS New
Dimensions Fund and serves as president of Growth
Spectrum Advisors.
The past six months proved to be a difficult period
for stocks in general and growth stocks in
particular. Because growth stocks comprise the
core of the portfolio, the fund was significantly
affected by those developments and, as a result,
lost value during the period.
On June 30, 1994, the accumulation unit value of
IDS Life Variable Annuity Fund B was $11.87,
compared with $12.69 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.)
The year got off to a positive start, as the stock
market and the fund gained ground throughout
January. The trend was short-lived, however. In
early February, the Federal Reserve Board began
raising interest rates to head off a potential
spike in the rate of inflation.
As often happens during interest-rate rises, the
stock market went into a retreat that, in this
case, lasted through April. Stocks of mid-size and
large growth companies, which comprise the bulk of
the portfolio, suffered the most during the
downturn. Although the broad market stabilized
somewhat during the final weeks of the period, even
gaining ground at times, growth stocks continued
to languish as investors leaned toward "cyclical"
companies, which were benefiting the most from an
improved economy.
During the period, we maintained an emphasis on
stocks of companies involved in technology,
financial services and business services, which
have treated us well in recent years. Even though
the technology sector was a poor performer overall,
we did enjoy success with several stocks,
including Compaq, Oracle and Microsoft. Other
prominent winners, regardless of business sector,
were First Chicago, United Healthcare, Nucor Steel,
Home Depot and Nordstrom. Disappointments, on the
other hand, were scattered among several sectors,
but stocks of media-related companies were
especially poor performers. On a general note, we
kept a higher-than-normal level of cash reserves,
which helped cushion the portfolio from the impact
of a difficult market.
As for the rest of the year, we think the direction
of the stock market is largely tied to interest
rates. If long-term rates stabilize, then the
chances of a sustained market gain are
substantially better. If that proves out, then we
believe growth stocks are the best candidates to
lead an advance. At this writing, we recently have
added some attractively priced stocks and still
have a fair amount of cash to put to work in stocks
if and when conditions warrant.
PAGE IDS Life Variable Annuity Fund B
<TABLE>
<CAPTION>
Ten Largest Holdings June 30, 1994
_________________________________________________________________
____________
Percent of
Fund's
Common Stocks Value Net Assets
_________________________________________________________________
____________
<S> <C> <C>
Federal National Mortgage $ 16,700,000 3.39%
Provides residential mortgage funds
Motorola 14,774,000 3.00
Manufacturer of semiconductors & communication equipment
Home Depot 14,680,563 2.98
Building materials and home improvement structures
Oracle Systems 12,600,000 2.56
Markets database management software
Computer Association Int'l 12,480,000 2.53
Systems software packages
First Chicago 12,310,375 2.50
Commercial banking
CSX 12,080,000 2.45
Railroad holding and transportation
Enron 11,462,000 2.33
Major natural gas pipeline system
Compaq Computer 11,126,250 2.26
Portable personal computers
First Financial Management 10,545,000 2.14
Financial data processing services
_________________________________________________________________
______________
Total $ 128,758,188 26.14%
_________________________________________________________________
______________
Excludes short-term securities.
</TABLE>
PAGE IDS Life Variable Annuity Fund B
<TABLE>
____________________________________________________________
__________________
Statement of Assets, Liabilities and Contract Owners' EquityJune 30, 1994
<CAPTION>
Assets
____________________________________________________________
__________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost, $396,314,878) $492,368,335
Cash in bank on demand deposit 1,095,821
Receivable for investment securities sold 2,739,073
Dividends and interest receivable 615,584
Receivable from IDS Life Insurance Company for
contract purchase payments 50,588
____________________________________________________________
__________________Total assets $496,869,401
____________________________________________________________
__________________
Liabilities
____________________________________________________________
__________________Payable for investment securities
purchased $ 4,273,443
Payable for contract terminations 140,041
Payable to IDS Life Insurance Company for:
Mortality and expense assurance fee 13,644
Investment management fee 5,458
____________________________________________________________
__________________Total liabilities 4,432,586
____________________________________________________________
__________________
Contract owners' equity
____________________________________________________________
__________________Contracts in accumulation period -
40,858,368 units at 484,791,478
$11.87 per unit (Note 5)
Contracts in payment period - 23,190 annuity units 7,645,337
____________________________________________________________
__________________Total contract owners' equity 492,436,815
____________________________________________________________
__________________Total liabilities and contract owners'
equity $496,869,401
____________________________________________________________
__________________See accompanying notes to financial
statements.
PAGE IDS Life Variable Annuity Fund B
____________________________________________________________
_______________________
Statement of Operations Six months ended June 30, 1994
Investment income - net
____________________________________________________________
__________________
(Unaudited)
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $40,711)$ 2,631,849
Interest 1,392,344
____________________________________________________________
___________________
Total income 4,024,193
____________________________________________________________
___________________
Expenses:
Mortality and expense assurance fee (Note 2) 2,617,074
Investment management fee (Note 3) 1,046,885
____________________________________________________________
___________________
Total expenses 3,663,959
____________________________________________________________
___________________
Investment income - net 360,234
____________________________________________________________
___________________
Realized and unrealized gain (loss) on investments - net
____________________________________________________________
___________________
Net realized gain on investments (Note 4) 16,624,230
Net change in unrealized appreciation or depreciation
of investments (51,343,553)
____________________________________________________________
___________________
Net loss on investments (34,719,323)
____________________________________________________________
___________________
Net decrease in contract owners' equity from operations$(34,359,089)
____________________________________________________________
___________________
See accompanying notes to financial statements.
PAGE IDS Life Variable Annuity Fund B
____________________________________________________________
___________________
Statement of Changes in Contract Owners' Equity
<CAPTION>
Six months
ended Year ended
Operations June 30, 1994Dec. 31,1993
____________________________________________________________
___________________
(Unaudited)
<S> <C> <C>
Investment income (loss) - net
$ 360,234 $ (875,535)
Net realized gain on investments 16,624,230 58,967,445
Net change in unrealized appreciation or depreciation
of investments (51,343,553)(11,397,737)
____________________________________________________________
___________________
Net increase (decrease) in contract owners' equity from
operations (34,359,089) 46,694,173
____________________________________________________________
___________________
Contract Transactions
____________________________________________________________
___________________
Net contract purchase payments (Note 2) 3,234,765 6,198,963
Repayment of temporary withdrawals 2,879 7,315
Net transfers from (to) fixed annuities 4,588,931 4,463,825
Actuarial adjustment for mortality assurance on
annuities in payment period (Note 2) - (414,512)
Contract termination payments and temporary withdrawals(15,018,002)
(27,401,827)
Annuity payments (569,119)(1,141,910)
____________________________________________________________
___________________
Net decrease from contract transactions(7,760,546)(18,288,146)
____________________________________________________________
___________________
Net increase (decrease) in contract owners' equity (42,119,635)
28,406,027
____________________________________________________________
___________________
Contract owners' equity at beginning of period534,556,450506,150,423
____________________________________________________________
___________________
Contract owners' equity at end of period$492,436,815$534,556,450
____________________________________________________________
___________________
See accompanying notes to financial statements.
</TABLE>
PAGE IDS Life Variable Annuity Fund B
Notes to Financial Statements (Unaudited)
_____________________________________________
____________________1. Organization and
summary of significant accounting policies
IDS Life Variable Annuity Fund B (the Fund)
is organized as a segregated asset account of
IDS Life Insurance Company (IDS Life) under
Minnesota law and is registered under the
Investment Company Act of 1940 as a
diversified, open-end management investment
company. The Fund's assets are held for the
exclusive benefit of its variable annuity
contract owners and are not chargeable with
any liabilities arising from the other
business activities of IDS Life. The
significant accounting policies followed by
the Fund are summarized as follows:
Investments in securities
Securities traded on national securities
exchanges are valued at the last quoted sales
price on the principal exchange on which
traded. Securities traded in the over-the-
counter market are valued at the mean of the
last quoted bid and asked price. Short-term
securities which mature in 60 days or less
are valued at amortized cost. Those maturing
in more than 60 days from the valuation date
are valued at the market price or approximate
market value based on current interest rates.
Short-term securities originally purchased
with maturities of more than 60 days but
which currently mature in 60 days or less are
valued on an amortized cost basis using the
market value or approximate market value on
the 61st day before maturity. Bonds and
other securities are valued at fair value as
determined by the Board of Managers when
market quotations are not readily available.
Determination of fair value involves among
other things, references to market indexes,
matrices and data from independent brokers.
Security transactions are accounted for on
the date the securities are purchased and
sold. Dividend income is recorded on the ex-
dividend date.
Option contracts
In order to produce incremental earnings,
protect gains, and facilitate buying and
selling of securities for investment
purposes, the Fund may buy and sell put and
call options and write covered call options
on portfolio securities. The risk in writing
a call option is that the Fund gives up the
opportunity of profit if the market price of
the security increases. The risk in writing
a put option is that the Fund may incur a
loss if the market price of the security
decreases and the option is exercised. The
risk in buying an option is that the Fund
pays a premium whether or not the option is
exercised. The Fund also has the additional
risk of not being able to enter into a
closing transaction if a liquid secondary
market does not exist.
Option contracts are valued daily at the
closing prices on their primary exchanges and
unrealized appreciation or depreciation is
recorded. The Fund will realize a gain or
loss upon expiration or closing of the option
transaction. When an option is exercised,
the proceeds on sales for a written call
option, the purchase cost for a written put
option or the cost of a security for a
purchased put or call option is adjusted by
the amount of premium received or paid.
PAGE IDS Life Variable Annuity Fund B
Notes to Financial Statements (Unaudited)
_____________________________________________
___________________
1. Organization and summary of significant
accounting policies (continued)
Futures contracts
In order to gain exposure to or protect
itself from changes in the market, the Fund
may buy and sell stock index futures
contracts and related options. Risks of
entering into futures contracts and related
options include the possibility that there
may be an illiquid market and that a change
in the value of the contract or option may
not correlate with the changes in the value
of the underlying securities.
Upon entering into a futures contract, the
Fund is required to deposit either cash or
securities in an amount (initial margin)
equal to a certain percentage of the contract
value. Subsequent payments (variation
margin) are made or received by the Fund each
day. The variation margin payments are equal
to the daily changes in the contract value
and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain
or loss when the contract is closed or
expires.
Foreign currency translations and
forward foreign currency contracts
Securities and other assets and liabilities
denominated in foreign currencies are
translated daily into U.S. dollars at the
closing rate of exchange. Foreign currency
amounts related to the purchase or sale of
securities and income and expenses are
translated at the rate of exchange on the
transaction date. It is not practicable to
identify that portion of realized and
unrealized gain or loss arising from changes
in the exchange rates from the portion
arising from changes in the market value of
investments.
The Fund may also enter into forward foreign
currency exchange contracts for operational
purposes and to protect against adverse
exchange rate fluctuation. The net U.S.
dollar value of foreign currency underlying
all contractual commitments held by the Fund
and the resulting unrealized appreciation or
depreciation are determined using foreign
currency exchange rates from an independent
pricing service. The Fund is subject to the
credit risk that the other party will not
complete the obligations of the contract.
Federal income taxes
IDS Life is taxed as a life insurance
company. The Fund is treated as part of IDS
Life for federal income tax purposes. Under
current federal income tax law, no taxes are
payable with respect to any income of the
Fund.
_____________________________________________
____________________2. Mortality and expense
assurance fee and sales charges
IDS Life makes contractual assurances to the
Fund that possible future adverse changes in
administrative expenses and mortality
experience of the annuitants and
beneficiaries will not affect the Fund. The
mortality and expense assurance fee paid to
IDS Life is computed daily and is equal on an
annual basis to 1 percent of the average
daily net assets of the Fund.
PAGE IDS Life Variable Annuity Fund B
Notes to Financial Statements (Unaudited)
_____________________________________________
____________________2. Mortality and expense
assurance fee and sales charges (continued)
Charges by IDS Life for its sales and
administrative services applicable to the
variable annuity contracts amounted to
$121,024 for the six months ended June 30,
1994 and $234,942 in 1993. Such charges are
not an expense of the Fund. They are
deducted from contract purchase payments and
are not included in the net contract purchase
payments to the Fund.
_____________________________________________
____________________3. Investment management
agreement
The Fund has an Investment Management
Agreement with IDS Life. For its services,
IDS Life is paid a fee based on the aggregate
average daily net assets of the Fund. The
investment management fee paid to IDS Life is
computed daily and is equal on an annual
basis to 0.4 percent of the average daily net
assets of the Fund.
In addition to paying its own management fee,
the Fund also pays all brokerage commissions
and charges in the purchase and sale of
assets. Brokerage charges are paid to IDS
Life for reimbursement of charges incurred in
the purchase and sale of foreign securities.
_____________________________________________
____________________4. Security transactions
and basis for determining realized gain and
loss
Cost of purchases and proceeds from sales of
securities (other than short-term
obligations) aggregated $124,125,581 and
$154,631,928 for the six months ended June
30, 1994. Net realized gain on investments
has been determined on the basis of
identified costs.
Brokerage commissions paid to brokers
affiliated with IDS Life were $14,484 for the
six months ended June 30, 1994.
_____________________________________________
____________________5. Accumulation units
The changes in number of outstanding units
applicable to contracts in the accumulation
period were as follows:
<TABLE>
Six months ended Year ended
June 30, 1994Dec. 31, 199
3
_______________________________________________________
_______________
<S> <C> <C>
Units outstanding at beginning of period41,447,61842,90
0,879
Additions for contract purchase payments and
repayments 257,245 518,156
Net transfers from (to) fixed annuities362,015 360,903
Deductions for contract terminations and withdrawals(1,
208,510) (2,332,320)
_______________________________________________________
_______________
Units outstanding at end of period40,858,368 41,447,618
_______________________________________________________
_______________
</TABLE>
_______________________________________________________
__________
PAGE IDS Life Variable Annuity Fund B
Notes to Financial Statements (Unaudited)
_______________________________________________________
__________________
6. Financial highlights
<TABLE>
The table below shows certain important
financial information for evaluating the
Fund's results.
<CAPTION>
Six months
ended Year ended Dec. 31,
June 30, _______________________________
___________
1994 1993 1992 1991 1990 1989
_________________________________________________________________
_____________________________
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value at beginning of period$12.69$11.60$10.87
$ 7.29 $7.14 $5.43
_________________________________________________________________
_____________________________
Income from investment operations:
Net investment income (loss) .01 (.02) (.03) .02 .07 .05
Net gains (losses) on securities, both realized
and unrealized (0.83) 1.11 0.76 3.56 .08 1.66
_________________________________________________________________
_____________________________
Total from investment operations 0.82 1.09 0.73 3.58 .15
1.71
_________________________________________________________________
_____________________________
Accumulation unit value at end of period$11.87$12.69$11.60$10.87
$7.29 $7.14
_________________________________________________________________
______________________________
Total Return** (6.49)%+ 9.42% 6.72%49.03% 2.12%31.46%
_________________________________________________________________
______________________________
Ratios/Supplemental Data
Total contract owner's equity at end of period
(000 omitted) $492,437$534,556$506,150$500,877$355,049
$376,790
Ratio of operating expenses to average net assets 1.40%*1.40%
1.40% 1.41% 1.41% 1.43%
Ratio of net investment income (loss) to average
net assets 0.14%*(0.17)%(0.28)%0.26% 0.93% 0.75%
Portfolio turnover rate 24% 64% 74% 67% 56% 53%
______________________________________________________________________
_________
*Adjusted to an annual basis.
**Total return does not reflect payment of a
sales charge.
+For the six month period ended June 30,
1994, the annualized total return is
(12.88)%.
The foregoing table pertains to accumulation
units only. There are two kinds of units.
As long as you are paying into the Fund they
are called "accumulation" units, when you
begin to receive your annuity, they change to
"annuity" units.
PAGE IDS Life Variable Annuity Fund B
Notes to Financial Statements (Unaudited)
_______________________________________________________
__________
6. Financial highlights (continued)
The value of an annuity unit (assuming a 3.5
percent investment rate) was $ 4.97 as of
June 30, 1994, $5.41 as of Dec. 31, 1993,
$5.11 as of Dec. 31, 1992, $4.96 as of Dec.
31, 1991, $3.46 as of Dec. 31, 1990 and $3.51
as of Dec. 31, 1989. The value of an annuity
unit (assuming a 5 percent investment rate)
was $3.45 as of June 30, 1994, $3.78 as of
Dec. 31, 1993, $3.63 as of Dec. 31, 1992,
$3.57 as of Dec. 31, 1991, $2.53 as of Dec.
31, 1990 and $2.60 as of Dec. 31, 1989.
</TABLE>
PAGE IDS Life Variable Annuity Fund B
<TABLE>
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
_____
(Percentages represent value of investments compared to
total net assets)
<CAPTION>
Common Stocks
____________________________________________________________
___________________
Issuer Shares Value(a)
____________________________________________________________
___________________
<S> <C> <C>
Airlines (1.7%)
Southwest Airlines 315,000 $ 8,229,375
____________________________________________________________
___________________
Automotive & Related (4.1%)
Chrysler 118,000 5,560,750
Eaton 176,000 9,152,000
Ford Motor 90,000 5,310,000
____________
20,022,750
____________________________________________________________
____________________
Banks and Savings & Loans (4.9%)
Bank America 55,000 2,516,250
First Chicago 255,800 12,310,375
Nations Bank 182,000 9,350,250
____________
24,176,875
____________________________________________________________
____________________
Beverages & Tobacco (1.1%)
Coca-Cola 130,000 5,281,250
____________________________________________________________
____________________
Computers & Office Equipment (10.3%)
Cisco Systems 368,000(b) 8,602,000
COMPAQ Computer 345,000(b)11,126,250
Computer Association Int'l 312,000 12,480,000
Lotus Development 67,000(b) 2,462,250
Microsoft 68,000(b) 3,502,000
Oracle Systems 336,000(b)12,600,000
____________
50,772,500
____________________________________________________________
____________________
Electronics (2.3%)
Harman Int'l 90,000(b) 2,250,000
Intel 158,000 9,243,000
____________
11,493,000
____________________________________________________________
____________________
See accompanying notes to investments in securities.
PAGE IDS Life Variable Annuity Fund B
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
________________
(Percentages represent value of investments compared to
total net assets)
Common Stocks (continued)
____________________________________________________________
___________________
Issuer Shares Value(a)
____________________________________________________________
___________________
Financial Services (9.5%)
Dean Witter 154,000 5,775,000
Federal National Mortgage 200,000 16,700,000
First Financial Management 190,000 10,545,000
H & R Block 102,300 4,015,275
Household Int'l 145,000 4,930,000
MBNA 220,000 4,950,000
____________
46,915,275
____________________________________________________________
____________________
Foreign (9.3%)
British Airways 85,000 4,898,125
Cable & Wireless 216,000 4,023,000
Ericsson ADR 112,000 5,551,000
Grupo Carso ADR 140,000(b) 2,501,520
Grupo Televisa 115,000(d) 5,836,250
Magna Int'l 168,000 6,720,000
News Corp ADR 160,000 7,720,000
Royal Dutch Petroleum 57,000 5,963,625
Woolworth's 1,200,000 2,529,600
____________
45,743,120
____________________________________________________________
_____________________
Health Care (2.5%)
Genentech 90,000(b) 4,432,500
Medtronic 100,000 8,012,500
____________
12,445,000
____________________________________________________________
_____________________
Health Care Services (3.6%)
Columbia Healthcare 135,000 5,045,625
HEALTHSOUTH Rehabilitation 135,000(b) 3,526,875
United Healthcare 205,000 9,122,500
____________
17,695,000
____________________________________________________________
_____________________
Household Products (1.5%)
Gillete 113,000 7,359,125
____________________________________________________________
_____________________
Industrial Transportation (2.4%)
CSX 160,000 12,080,000
____________________________________________________________
_____________________
See accompanying notes to investments in securities.
PAGE IDS Life Variable Annuity Fund B
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
________________
(Percentages represent value of investments compared to
total net assets)
Common Stocks (continued)
____________________________________________________________
___________________
Issuer Shares Value(a)
____________________________________________________________
___________________
Insurance (1.0%)
Equitable 270,000 4,792,500
____________________________________________________________
_____________________
Leisure Time & Entertainment (4.1%)
Int'l Game Technology 220,000 4,152,500
Mattel 143,750 3,647,656
Promus 225,000 6,665,625
Walt Disney 140,000 5,827,500
____________
20,293,281
____________________________________________________________
_____________________
Media (2.8%)
Comcast 227,000 4,086,000
Time Warner 275,000 9,659,375
____________
13,745,375
____________________________________________________________
_____________________
Metals (3.0%)
Birmingham Steel 180,000 4,860,000
Nucor 142,000 9,727,000
____________
14,587,000
___________________________________________________
______________________________
Natural Gas (3.0%)
Enron 350,000 11,462,500
Enron Oil & Gas 146,000 3,358,000
____________
14,820,500
____________________________________________________________
_____________________
Restaurants & Lodging (3.8%)
Brinker Int'l 375,000(b) 7,875,000
Hilton Hotels 100,000 5,300,000
Wendy's Int'l 362,000 5,656,250
____________
18,831,250
____________________________________________________________
_____________________
See accompanying notes to investments in securities.
PAGE IDS Life Variable Annuity Fund B
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
________________
(Percentages represent value of investments compared to
total net assets)
Common Stocks (continued)
____________________________________________________________
___________________
Issuer Shares Value(a)
____________________________________________________________
___________________
Retail (8.6%)
Home Depot 348,500 14,680,563
J.C. Penney 158,000 8,571,500
Nordstrom 176,000 7,480,000
Office Depot 330,000(b) 6,600,000
Wal-Mart Stores 215,000 5,213,750
____________
42,545,813
____________________________________________________________
______________________
Telecommunications Equipment & Services (4.2%)
AirTouch Communications 245,000(b) 5,788,125
Motorola 332,000 14,774,000
____________
20,562,125
____________________________________________________________
______________________
Utilities - Telephone (1.2%)
U.S. West 140,000 5,862,500
____________________________________________________________
______________________
Total Common Stocks (84.9%)
(Cost: $322,128,658) $418,253,614
____________________________________________________________
______________________
<CAPTION>
Short-term Securities
____________________________________________________________
______________________
Annualized
Yield on
Date of Principal
Issuer Purchase Amount Value(a)
____________________________________________________________
______________________
<S> <C> <C> <C>
U.S. Government & Agency (1.3%)
FNMA Disc Nts
07-15-94 4.19% 400,000 399,350
09-13-94 4.39 1,500,000 1,485,937
U.S. Treasury Bills, 07-28-94 3.19 4,300,000 4,284,052
___________
6,169,339
____________________________________________________________
______________________
See accompanying notes to investments in securities.
PAGE IDS Life Variable Annuity Fund B
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
________________
(Percentages represent value of investments compared to
total net assets)
Short-term Securities (continued)
____________________________________________________________
______________________
Annualized
Yield on
Date of Principal
Issuer Purchase Amount Value(a)
____________________________________________________________
______________________
Commercial Paper (11.8%)
Ciesco, 09-12-94 4.43 2,600,000 2,574,881
CIT Group, 03-28-95 4.39(e)5,000,000 4,996,145
Columbia Fuels, 08-08-94 4.35 3,000,000 2,985,494
Commerzbank US FIN, 07-15-94 3.29 8,000,000 7,982,299
Fleet Funding, 08-12-94 4.33 4,350,000(c) 4,327,475
Ford Motor Credit
07-22-94 4.32 2,500,000 2,493,729
08-16-94 4.55 2,000,000 1,988,256
GE Capital, 11-28-94 4.89 3,100,000 3,036,760
Heinz (H.J.), 08-18-94 4.37 2,000,000 1,988,400
Nat'l Australia Funding, 08-30-94 4.58 3,400,000 3,373,787
Norfolk Southern
07-13-94 3.27 1,600,000(c) 1,596,950
11-30-94 4.70 2,400,000(c) 2,349,714
Paribas Finance, 07-15-94 4.24 3,400,000 3,394,407
J.C. Penney, 08-24-94 4.38 2,300,000 2,284,220
Pitney Bowes Credit, 07-12-94 3.91 3,000,000 2,994,928
Southern California Gas, 08-10-944.35 1,626,000(c) 1,617,718
Sysco, 07-26-94 4.36 5,800,000 5,779,822
U.S. West , 08-09-94 4.33 2,250,000 2,239,519
_________
58,004,504
____________________________________________________________
______________________
Letters of Credit (2.0%)
Bank America-Hyundai
07-20-94 3.30 3,000,000 2,991,971
07-26-94 3.28 7,000,000(c) 6,948,907
__________
9,940,878
__________________________________________________________________________________
Total Short-term Securities (15.1%)
(Cost: $74,186,220) $ 74,114,721
____________________________________________________________
______________________
Total Investments in Securities (100.0%)
(Cost: $396,314,878(f) $492,368,335
____________________________________________________________
______________________
See accompanying notes to investments in securities.
PAGE IDS Life Variable Annuity Fund B
Investments in Securities, June 30, 1994 (Unaudited)
____________________________________________________________
________________
(Percentages represent value of investments compared to
total net assets)
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 sold within terms of a private placement
memorandum, exempt from registration under section 4(2) of
the Securities Act of 1933, as amended, and may be sold only
to dealers in that program or other "accredited investors."
These securities have been determined to be liquid under
guidelines established by the board of managers.
(d)Represents security sold under Rule 144A and is exempt
from registration under the Securities Act of 1993, as
amended. This security has been determined to be liquid
under guidelines established by the board of managers.
(e)Interest rate varies, rate shown is the effective rate on
June 30, 1994.
(f)At June 30, 1994, the cost of securities for federal
income tax purposes was $396,314,878
and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
<S> <C>
Unrealized appreciation $112,378,677
Unrealized depreciation (16,325,220)
____________________________________________________________
________________
Net unrealized appreciation $ 96,053,457
____________________________________________________________
________________
</TABLE>
PAGE IDS Life Variable Annuity Fund B
Managers and Officers
Board of Managers
Richard W. Kling
president, IDS Life Insurance Company
Edward Landes
retired, former development consultant
Janis E. Miller
executive vice president, Variable assets,
IDS Life Insurance Company
Carl N. Platou
president emeritus, Fairview Hospital
and Healthcare Services
Gordon H. Ritz
president, Con Rad Broadcasting Corp.
Principal Officers
Richard W. Kling
chairman of the board and president
Louis C. Fornetti
vice president
Morris Goodwin, Jr.
vice president and treasurer
William A. Stoltzmann
general counsel and assistant secretary
Colleen Curran
secretary
Robert O. Schneider
controller
Additional Information
The investment objective of IDS Life Variable
Annuity Fund B is to invest in securities
which offer opportunities for long-term
capital appreciation consistent with
accumulating fund value and providing annuity
payments under variable annuity contracts
issued by IDS Life.
PAGE IDS Life Variable Annuity Fund B
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 B but it may be used as sales literature
when preceded or accompanied by the current
prospectus. For details and other material
information, see the current prospectus.
Issuer and Investment Manager:
IDS Life Insurance Company,
Minneapolis, Minn.
Custodian:
IDS Trust Company,
Minneapolis, Minn.
Sub-Custodian:
First Bank National Association
St. Paul, Minn.
PAGE IDS Life Variable Annuity Fund B
Notes
PAGE IDS Life Variable Annuity Fund B
IDS Life Insurance Company Products
_____________________________________________
____________________Universal Life Insurance
Flexible protection for your changing needs.
IDS Life's Life Protection Plus plan is
Universal Life Insurance that separates the
cash value of your policy from the insurance,
allowing you to adapt the plan to fit your
circumstances. A flexible premium payment
policy allows you to add to your cash value
and earn interest at current rates on a tax-
deferred basis.
_____________________________________________
____________________Variable Universal Life
Insurance*
Protection with opportunities for growth.
Variable Universal Life Insurance from IDS
Life is a tax-advantaged flexible protection
plan that lets you vary your protection as
your needs change and build a cash value by
taking advantage of different market
conditions. You can choose from nine
different investment options for you cash
value that let you select the appropriate
investment objectives. Variable Universal
Life is offered by prospectus only.
_____________________________________________
____________________Whole Life Insurance
Permanent protection with guaranteed cash
value. IDS Life's Whole Life Insurance
provides lifetime protection. The amount of
your insurance will not change as long as you
maintain your policy, and your cash value is
guaranteed at all times. Whole life
insurance provides a systematic way to
accumulate cash value and earn interest on a
tax-deferred basis.
_____________________________________________
____________________Term Life Insurance
Low cost protection until you reach your
goals. Term Life insurance from IDS Life can
provide low cost coverage while you work
toward a specific objective. You can choose
from several plans.
_____________________________________________
____________________Income Protection Plans
Protection against the loss of income from
disability. IDS Life's Income Protection
Plans (Disability Insurance) provide an
income if you are injured or too sick to
work. A personal income protection plan
offers you financial security against the
loss of income.
_____________________________________________
____________________Long-Term Care Plan
An insurance plan to help you cover the costs
of nursing home care and home care. The IDS
Long-Term Care plan helps protect the savings
you've built up over a lifetime.
_____________________________________________
____________________Fixed Retirement
Annuities and Fixed Retirement Annuity-Value
Plus
A tax-deferred way to provide a guaranteed
lifetime income. A single payment IDS Life
Fixed Retirement Annuity creates an income
you can't outlive. The annuities offer
competitive fixed rates of return tax-
deferred, until earnings are withdrawn. Your
money is invested in a high quality
diversified portfolio.
_____________________________________________
____________________
PAGE IDS Life Variable Annuity Fund B
IDS Life Insurance Company Products
(continued)
_____________________________________________
____________________Flexible Annuity
Investment flexibility as you provide for a
lifetime income. Looking for the ultimate in
terms of investment flexibility? IDS Life's
Flexible Annuity lets you take advantage of
changes in the economy by directing your
purchase payments into an equity fund, and
aggressive equity fund, and international
equity fund, a bond fund, a managed fund, a
money market fund, a fixed account - or any
combination of the seven. You pay no taxes
on earnings until they are withdrawn. The
overall value of your annuity will vary
according to the performance of the fund(s)
you select. The Flexible Annuity is offered
by prospectus only.
_____________________________________________
____________________Real Estate Variable
Annuity
A real estate investment providing retirement
income through an annuity contract. Purchase
payments will be primarily invested into a
diversified portfolio of income-producing
real estate related investments. The Real
Estate Variable Annuity is offered by
prospectus only.
_____________________________________________
____________________Immediate Annuity
A single payment guarantees you immediate
lifetime income. In exchange for a single
premium payment, IDS Life will pay you a
fixed dollar guaranteed monthly income for
life, beginning within 30 days of the date of
your purchase. You may select the annuity
payment option that is best suited to your
income needs.
_____________________________________________
____________________*Variable Universal Life
Insurance is not available in the District of
Columbia. For more complete information,
including charges and expenses, on Variable
Universal Life Insurance, Flexible Annuity
and Real Estate Variable Annuity, you can
obtain a prospectus by contacting your IDS
personal financial planner. Read it
carefully before you invest or send money.
