IDS Life Variable Annuity Fund B
PAGE
1995 SEMIANNUAL REPORT
IDS Life
Variable Annuity
Fund B
Invests in a wide range of securities to
provide long-term capital appreciation for
contract owners
Managed by IDS Life Insurance Company
(logo of American Express Financial Advisors
PAGE
Message From the Executive Vice President
(picture of Janis Miller)
Dear Contract Owner,
Last year at this time, we were talking to you
about how the stock market had made for a
difficult period for contract owners of this
Fund. Now, as the market tends to do, things
have moved in a different direction.
Particularly since the latter part of 1994,
investors have enjoyed a buoyant recovery.
As we have said before, such market volatility
is a fact of life. But in the long run, history
tells us that equities provide solid
performance for investors. The bottom line for
you is to continue with a long-term perspective
-- something that the structure of this Fund
generates for you.
One way to benefit from short-term market
movements is by making regular investments of
fixed amounts of money. This systematic
approach, called dollar-cost averaging,
smoothes the effects of stock market volatility
and can reduce the average cost of buying
accumulation units.
If your contract allows additional payments,
those extra purchases enable you to dollar-cost
average. Subject to restriction, if your
contract has a fixed account, you also can
establish a systematic transfer program from
the fixed account to the variable account. In
essence, you may take advantage of market
fluctuations by purchasing more accumulation
units when the price is low and fewer units
when the price is high. This may help you
achieve what every investor wants: to reduce
the average cost of purchasing accumulation
units. While dollar-cost averaging does not
ensure a profit and does not protect against a
loss if the market declines, it is an effective
way for many contract owners who continue
investing through changing market conditions to
obtain accumulation units at a lower average
cost to meet long-term goals.
Your financial advisor can tell you more about
systematic investing and how it can help you
meet your financial objectives. Your advisor
also can help you make sure your investment
strategies continue to meet the objectives in
your financial plan. As your objectives and
time horizons change, talk to your advisor
about the broad range of products and services
offered by American Express Financial
Corporation and IDS Life designed to help you
meet a variety of investment and protection
needs.
Sincerely,
Janis E. Miller
Executive Vice President, Variable Assets
IDS Life Insurance Company
PAGE
From Your Portfolio Manager: A Perspective
(picture of Mitzi Malevich)
Mitzi Malevich serves as portfolio manager for
IDS Life Variable Annuity Fund B. She also
manages IDS Growth Fund.
Sharp stock selection and a powerful market
rally combined to generate a double-digit gain
for contract owners during the first half of
the fiscal year (January through June 1995).
On June 30, 1995, the accumulation unit value
of IDS Life Variable Annuity Fund B was $14.53,
compared with $12.18 at the beginning of the
year. (If you purchased additional accumulation
units during the period, your return would have
been affected by the sales and administrative
charges, as described in the prospectus.)
After struggling throughout nearly all of 1994,
the stock market got off to a strong start this
year. The driving factors included an ongoing
low inflation rate, good corporate profits and
declining long-term interest rates - an almost
sure-fire formula for rising stock prices. With
those factors in place throughout the six-month
period, the stock market enjoyed its strongest
advance in years.
To the particular benefit of this Fund, growth
stocks, which had languished for many months,
responded particularly well to the positive
environment. More specifically, stocks of
technology companies, especially those of
semiconductor producers, were often at the
forefront of the market rally. Complementing the
gains by those issues were good performances by
health care and financial services stocks, to
which we also had considerable exposure.
Consistent with the change in portfolio
managers that took place last spring, the Fund
carried little cash reserves during the period.
This strategy also contributed to the Fund's
performance, as the return from stocks far
exceeded that generated by cash. The low cash
level will be an ongoing facet of the Fund.
While we expect this approach to be a benefit
during positive market trends, it will also
likely mean more negative performance during
downturns. In the long run, however, we believe
results will be enhanced.
As we enter the second half of the year, we
think the key to the market's direction will be
long-term interest rates. If they take a stable-
to-declining path, stocks will be in good
position to advance, though it's unlikely they
will be able to match the pace of the first
half of the year. Another possible boon to the
market is the possibility of a reduction in the
capital gains tax. That, should it occur, may
be some time away, however. In the meantime, we
will continue our search for rapidly growing
companies with bright business prospects,
regardless of industry sector.
Mitzi Malevich
PAGE
<TABLE>
<CAPTION>
Ten Largest Holdings June 30, 1995
______________________________________________________________________
_________
Percent of
Fund's
Common stocks Value Net Assets
______________________________________________________________________
_________
<S> <C> <C>
Oracle Systems $19,467,000 3.44%
Markets database management software
Cisco Systems 18,607,000 3.29
Manufacturer of computer network products
Computer Association International 16,869,750 2.98
Systems software packages
Compaq Computer 15,654,375 2.77
Portable personal computers
Medtronic 15,425,000 2.73
A major, diversified medical device company
Pfizer 14,604,488 2.58
Leading producer of pharmaceuticals, hospital products, animal health
items,
non-prescription medications and specialty chemicals
Tellabs 14,437,500 2.55
Designer, manufacturer and marketer of a broad range of products and
equipment
for use by telephone companies, the Bell System, specialized common
carriers and
other providers of telecommunication services
Nucor Steel 14,284,500 2.53
One of the largest and most profitable domestic steel mini-mills,
Nucor Steel is a
leading producer of joist and girders used in construction
Home Depot 14,157,812 2.50
Building materials and home improvement structures
Intel 13,928,750 2.46
Designs and manufactures the microprocessor chips used in all IBM and
IBM-compatible
personal computers
______________________________________________________________________
_________
Total $157,436,175 27.83%
______________________________________________________________________
_________
Excludes short-term securities.
</TABLE>
PAGE
<TABLE>
<CAPTION>
____________________________________________________________
__________________
Statement of Assets, Liabilities and Contract Owners' EquityJune 30, 1995
Assets
____________________________________________________________
__________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost, $395,865,176) $568,622,301
Dividends and interest receivable 413,747
Receivable from IDS Life Insurance Company for
contract purchase payments 225,828
____________________________________________________________
__________________Total assets $569,261,876
____________________________________________________________
__________________
Liabilities
____________________________________________________________
__________________Disbursements in excess of cash on demand
deposit $2,419,345
Payable for investment securities purchased 544,063
Payable for contract terminations 546,389
Payable to IDS Life Insurance Company for:
Mortality and expense assurance fee 43,654
Investment management fee 39,761
____________________________________________________________
__________________Total liabilities 3,593,212
____________________________________________________________
__________________
Contract owners' equity
____________________________________________________________
__________________Contracts in accumulation period -
38,304,432 units at
$14.53 per unit (Note 5) 556,242,618
Contracts in payment period - 24,838 annuity units 9,426,046
____________________________________________________________
__________________Total contract owners' equity 565,668,664
____________________________________________________________
__________________Total liabilities and contract owners'
equity $569,261,876
____________________________________________________________
__________________See accompanying notes to financial
statements.
PAGE
____________________________________________________________
___________________
Statement of Operations Six months ended June 30, 1995
Investment income - net
____________________________________________________________
___________________
(Unaudited)
Income:
Dividends (net of foreign taxes withheld of $77,873)$2,435,567
Interest 1,226,485
____________________________________________________________
___________________
Total income 3,662,052
____________________________________________________________
___________________
Expenses:
Mortality and expense assurance fee (Note 2) 2,585,684
Investment management fee (Note 3) 1,034,327
____________________________________________________________
___________________
Total expenses 3,620,011
____________________________________________________________
___________________
Investment income - net 42,041
____________________________________________________________
___________________
Realized and unrealized gain (loss) on investments - net
____________________________________________________________
___________________
Net realized gain on security transactions (Note 4) 16,329,143
Net realized loss on foreign currency transactions (1,218)
____________________________________________________________
___________________
Net realized gain on investments 16,327,925
Net change in unrealized appreciation or depreciation
of investments 76,264,804
____________________________________________________________
___________________
Net gain on investments 92,592,729
____________________________________________________________
___________________
Net increase in contract owners' equity from operations$92,634,770
____________________________________________________________
___________________
See accompanying notes to financial statements.
</TABLE>
PAGE
<TABLE>
<CAPTION>
____________________________________________________________
__________________Statement of Changes in Contract Owners'
Equity
Six months ended Year ended
Operations June 30, 1995Dec. 31,1994
____________________________________________________________
__________________
(Unaudited)
<S> <C> <C>
Investment income - net $ 42,041$ 1,285,716
Net realized gain on investments 16,327,925 28,474,677
Net change in unrealized appreciation or depreciation
of investments 76,264,804(50,904,689)
____________________________________________________________
__________________Net increase (decrease) in contract
owners' equity
from operations 92,634,770(21,144,296)
____________________________________________________________
__________________
Contract Transactions
____________________________________________________________
__________________Net contract purchase payments (Note 2)2,775,593 5,788,027
Repayment of temporary withdrawals 2,057 6,455
Net transfers from (to) fixed annuities(1,323,932) 6,690,823
Actuarial adjustment for mortality assurance on
annuities in payment period (Note 2) -- 119,711
Contract termination payments and temporary withdrawals(22,359,954)
(30,379,558)
Annuity payments (579,815)(1,117,667)
____________________________________________________________
__________________Net decrease from contract transactions(21,486,051)
(18,892,209)
____________________________________________________________
__________________Net increase (decrease) in contract
owners' equity 71,148,719(40,036,505)
____________________________________________________________
__________________
Contract owners' equity at beginning of period494,519,945534,556,450
____________________________________________________________
__________________
Contract owners' equity at end of period565,668,664494,519,945
____________________________________________________________
__________________See accompanying notes to financial
statements.
</TABLE>
PAGE
Notes to Financial Statements (Unaudited)
____________________________________________________
________________1. Organization and summary of
significant accounting policies
IDS Life Variable Annuity Fund 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 that mature in 60 days or less
are valued at amortized cost. Those maturing in
more than 60 days from the valuation date are valued
at the market price or approximate market value
based on current interest rates. Short-term
securities originally purchased with maturities of
more than 60 days but which currently mature in 60
days or less are valued on an amortized cost basis
using the market value or approximate market value
on the 61st day before maturity. Bonds and other
securities are valued at fair value as determined by
the Board of Managers when market quotations are not
readily available. Determination of fair value
involves among other things, references to market
indexes, matrices and data from independent brokers.
Security transactions are accounted for on the date
the securities are purchased and sold. Dividend
income is recorded on the ex-dividend date.
Option contracts
In order to produce incremental
earnings, protect gains, and facilitate buying and
selling of securities for investment purposes, the
Fund may buy and sell put and call options and write
covered call options on portfolio securities. The
risk in writing a call option is that the Fund gives
up the opportunity of profit if the market price of
the security increases. The risk in writing a put
option is that the Fund may incur a loss if the
market price of the security decreases and the
option is exercised. The risk in buying an option
is that the Fund pays a premium whether or not the
option is exercised. The Fund also has the
additional risk of not being able to enter into a
closing transaction if a liquid secondary market
does not exist.
Option contracts are valued daily at the closing
prices on their primary exchanges and unrealized
appreciation or depreciation is recorded. The Fund
will realize a gain or loss upon expiration or
closing of the option transaction. When an option
is exercised, the proceeds on sales for a written
call option, the purchase cost for a written put
option or the cost of a security for a purchased put
or call option is adjusted by the amount of premium
received or paid.
During the six months ended June 30, 1995, the Fund
did not buy or sell any put or call options or write
any covered call or put options. There were no
option contracts outstanding at June 30, 1995.
Futures contracts
In order to gain exposure to or protect itself
from changes in the market, the Fund may buy and
sell stock index futures contracts and related
options. Risks of entering into futures contracts
and related options include the possibility that
there may be an illiquid market and that a change in
the value of the contract or option may not
correlate with the changes in the value of the
underlying securities.
Upon entering into a futures contract, the Fund is
required to deposit either cash or securities in an
amount (initial margin) equal to a certain
percentage of the contract value. Subsequent
payments (variation margin) are made or received by
the Fund each day. The variation margin payments
are equal to the daily changes in the contract value
and are recorded as unrealized gains and losses.
The Fund recognizes a realized gain or loss when the
contract is closed or expires.
During the six months ended June 30, 1995, the Fund
did not buy or sell stock index futures contracts
and related options. There were no stock index
futures contracts outstanding at June 30, 1995.
Foreign currency translations and
forward foreign currency contracts
Securities and other assets and liabilities
denominated in foreign currencies are translated
daily into U.S. dollars at the closing rate of
exchange. Foreign currency amounts related to the
purchase or sale of securities and income and
expenses are translated at the rate of exchange on
the transaction date. It is not practicable to
identify that portion of realized and unrealized
gain or loss arising from changes in the exchange
rates from the portion arising from changes in the
market value of investments.
The Fund may also enter into forward foreign
currency exchange contracts for operational purposes
and to protect against adverse exchange rate
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 at June 30, 1995.
Federal income taxes
IDS Life is taxed as a life insurance company. The
Fund is treated as part of IDS Life for federal
income tax purposes. Under current federal income
tax law, no taxes are payable with respect to any
income of the Fund.
____________________________________________________
________________2. Mortality and expense assurance
fee and sales charges
IDS Life makes contractual assurances to the Fund
that possible future adverse changes in
administrative expenses and mortality experience of
the annuitants and beneficiaries will not affect the
Fund. The mortality and expense assurance fee paid
to IDS Life is computed daily and is equal on an
annual basis to 1 percent of the average daily net
assets of the Fund.
Charges by IDS Life for its sales and administrative
services applicable to the variable annuity
contracts amounted to $101,853 for the six months
ended June 30, 1995 and $216,240 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 $147,376,157 and $144,465,331 for the six
months ended June 30, 1995. Net realized gain on
investments has been determined on the basis of
identified costs.
Brokerage commissions paid to brokers affiliated
with IDS Life were $1,704 for the six months ended
June 30, 1995.
____________________________________________________
________________5. Accumulation units
The changes in number of outstanding units
applicable to contracts in the accumulation period
were as follows:
Six months ended Year ended
June 30, 1995Dec. 31, 199
4
_______________________________________________________
_______________
Units outstanding at beginning of period39,954,87941,44
7,618
Additions for contract purchase payments and
repayments 213,439 465,722
Net transfers from (to) fixed annuities(114,291)531,992
Deductions for contract terminations and withdrawals(1,
749,595) (2,490,453)
_______________________________________________________
_______________
Units outstanding at end of period38,304,432 39,954,879
_______________________________________________________
_______________
_______________________________________________________
_______________
6. Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Six months
ended Year ended Dec. 31,
June 30,
_______________________________________
1995 1994 1993 1992 1991 1990
___________________________________________________________________________
____________________
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Accumulation unit value at beginning of period$12.18$12.69$11.60 $10.87 $ 7.29 $7.14
___________________________________________________________________________
____________________
Income from investment operations:
Net investment income (loss) -- .03 (.02) (.03) .02 .07
Net gains (losses) on securities, both realized
and unrealized 2.35 (0.54) 1.11 0.76 3.56 .08
___________________________________________________________________________
____________________
Total from investment operations 2.35 (0.51) 1.09 0.73 3.58 .15
___________________________________________________________________________
____________________
Accumulation unit value at end of period $14.53 $12.18 $12.69 $11.60 $10.87 $7.29
___________________________________________________________________________
____________________
Total Return** 19.23%+ (4.00)% 9.42% 6.72% 49.03% 2.12%
_______________________________________________________________________________________________
Ratios/Supplemental Data
Total contract owner's equity at end of period
(000 omitted) $565,669$494,520$534,556$506,150$500,877$355,049
Ratio of operating expenses to average net assets1.40%* 1.40% 1.40% 1.40% 1.41% 1.41%
Ratio of net investment income (loss) to average
net assets 0.02%* 0.25% (0.17)%(0.28)% 0.26% 0.93%
Portfolio turnover rate 30% 61% 64% 74% 67% 56%
______________________________________________________________________
_____________________
*Adjusted to an annual basis.
**Total return does not reflect payment of a sales charge.
+For the six month period ended June 30, 1995, the annualized total
return is 38.57%.
</TABLE>
The foregoing table pertains to accumulation units
only. There are two kinds of units. As long as you
are paying into the Fund they are called
"accumulation" units. When you begin to receive
your annuity, they change to "annuity" units.
The value of an annuity unit (assuming a 3.5 percent
investment rate) was $5.88 as of June 30, 1995, $5.02
as of Dec. 31, 1994, $5.41 as of Dec. 31, 1993, $5.11
as of Dec. 31, 1992, $4.96 as of Dec. 31, 1991 and
$3.46 as of Dec. 31, 1990. The value of an annuity unit
(assuming a 5 percent investment rate) was $4.02 as of
June 30, 1995, $3.46 as of Dec. 31, 1994, $3.78 as of
Dec. 31, 1993, $3.63 as of Dec. 31, 1992, $3.57 as of
Dec. 31, 1991 and $2.53 as of Dec. 31, 1990.
PAGE
<TABLE>
<CAPTION>
____________________________________________________________
________________
Investments in Securities, June 30, 1995 (Unaudited)
____________________________________________________________
________________
(Percentages represent value of investments compared to
total net assets)
Common Stocks
____________________________________________________________
__________________Issuer Shares Value(a)
____________________________________________________________
<S> <C> <C>
Airlines (1.3%)
Northwest Airlines 200,000(b) 7,075,000
____________________________________________________________
__________________Automotive related (0.9%)
Ford Motor 180,000 5,355,000
____________________________________________________________
__________________Banks and savings & loans (2.3%)
First Chicago 221,700 13,274,288
____________________________________________________________
__________________Beverages & tobacco (2.2%)
Coca-Cola 199,600 12,724,500
____________________________________________________________
__________________Building materials (1.0%)
Tyco Intl 100,000 5,400,000
____________________________________________________________
__________________Computers & office equipment (19.4%)
Cisco Systems 368,000(b)18,607,000
Compaq Computer 345,000(b)15,654,375
Computer Association Intl 249,000 16,869,750
Hewlett-Packard 112,400 8,373,800
Intuit 45,000(b) 3,420,000
Microsoft 120,000(b)10,845,000
Oracle Systems 504,000(b)19,467,000
Parametric Technology 151,800(b) 7,552,050
Softkey Intl 105,100(b) 3,350,063
Solectron 160,000(b) 5,460,000
___________
109,599,038
____________________________________________________________
__________________Electronics (5.5%)
Applied Materials 108,800(b) 9,424,800
Harman Intl 138,300 5,601,150
Intel 220,000 13,928,750
Maxim Intergrated Products 38,000(b) 1,938,000
Nexgen 2,800(b) 66,150
___________
30,958,850
____________________________________________________________
__________________Energy (1.4%)
Mobil 80,000 7,680,000
____________________________________________________________
__________________Energy equipment & services (0.9%)
Fluor 100,000 5,200,000
____________________________________________________________
__________________Financial services (2.1%)
First Financial Management 140,800 12,038,400
____________________________________________________________
__________________Foreign (10.5%)
Danka Business Systems ADR 300,000 7,256,250
Ericsson ADR 686,400 13,728,000
Magna Intl 133,900 5,908,337
Nokia Preferred 199,800 11,913,075
Royal Dutch Petroleum 94,000 11,456,250
Schlumberger 100,000 6,212,500
Teva Pharmaceutical ADR 80,000 3,000,000
___________
59,474,412
____________________________________________________________
__________________Health care (8.1%)
Arrow Intl 23,000 971,750
Forest Labs 98,700(b) 4,379,812
Johnson & Johnson 85,000 5,748,125
Medtronic 200,000 15,425,000
Pfizer 158,100 14,604,488
Stryker 120,000 4,605,000
___________
45,734,175
____________________________________________________________
__________________Health care services (3.7%)
HEALTHSOUTH 537,400(b) 9,337,325
Healthcare COMPARE 100,000(b) 3,000,000
MedPartners 2,800(b) 53,900
United Healthcare 212,700 8,800,463
___________
21,191,688
____________________________________________________________
__________________Household products (3.1%)
Duracell 176,400 7,629,300
Gillette 226,000 10,085,250
___________
17,714,550
____________________________________________________________
__________________Industrial machines & services (4.1%)
Caterpillar 180,000 11,565,000
Deere & Company 98,000 8,391,250
Sanifill 100,000(b) 3,137,500
__________
23,093,750
____________________________________________________________
__________________Leisure time & entertainment (2.5%)
Promus 225,000 8,775,000
Walt Disney 100,000 5,562,500
___________
14,337,500
____________________________________________________________
__________________Metals (4.0%)
Alumax 80,100(b) 2,493,113
Birmingham Steel 317,700 5,877,450
Nucor Steel 267,000 14,284,500
____________
22,655,063
____________________________________________________________
__________________Multi-industry (2.8%)
Alco Standard 150,000 11,981,250
Manpower 150,900 3,847,950
____________
15,829,200
____________________________________________________________
__________________Restaurants & lodging (1.3%)
McDonald's 187,500 7,335,937
____________________________________________________________
__________________Retail (5.7%)
Best Buy 78,400(b) 2,087,400
Home Depot 348,500 14,157,812
Nordstrom 176,000 7,282,000
Office Depot 100,000(b) 2,812,500
Wal-Mart Stores 215,000 5,751,250
___________
32,090,962
____________________________________________________________
__________________Telecommunications equipment & services
(8.8%)
ADC Telecommunications 180,000(b) 6,435,000
Andrew 93,300(b) 5,399,737
Motorola 200,000 13,425,000
Scientific-Atlanta 250,000 5,500,000
StrataCom 90,000(b) 4,387,500
Tellabs 300,000(b)14,437,500
___________
49,584,737
____________________________________________________________
__________________Utilities - telephone (2.6%)
AirTouch Communications 290,000(b) 8,265,000
MFS Communications 200,000(b) 6,450,000
___________
14,715,000
____________________________________________________________
__________________Total common stocks (94.2%)
(Cost: $360,304,925) $533,062,050
____________________________________________________________
__________________</TABLE>
<TABLE>
<CAPTION>
Short-term securities
____________________________________________________________
__________________
Annualized
yield on
date of Principal
Issuer purchase amount Value(a)
____________________________________________________________
__________________<S> <C> <C> <C>
U.S. government & agency (0.3%)
FHLMC Disc Nts
07-05-95 5.87% $1,850,000 $1,848,797
____________________________________________________________
__________________Commercial paper (5.1%)
Bell Atlantic, 07-10-95 5.96 1,000,000 998,513
Cafco, 07-28-95 5.99 1,100,000 1,095,075
Commerzbank US
07-03-95 6.17 400,000 399,863
07-17-95 6.00 2,000,000 1,994,711
Fleet Funding, 07-05-95 5.99 2,000,000(c) 1,998,678
Ford Motor Credit
07-18-95 5.99 3,000,000 2,991,543
07-21-95 5.98 1,700,000 1,694,371
GE Capital, 08-01-95 5.98 3,000,000 2,984,629
Household Finance, 07-03-95 5.96 1,500,000 1,499,504
Kredietbank NA
07-10-95 5.98 2,500,000 2,496,281
07-10-95 5.99 1,200,000 1,198,209
SmithKline Beecham, 07-14-95 5.96 4,000,000 3,991,434
Toyota Motor Credit, 07-10-95 5.95 2,500,000 2,496,300
U.S. West Communications, 08-09-955.95 2,900,000 2,881,464
_________
28,720,575
____________________________________________________________
__________________Letters of credit (0.9%)
Bank America-Hyundai
07-12-95 5.99 5,000,000 4,990,879
____________________________________________________________
__________________Total short-term securities (6.3%)
(Cost: $35,560,251) $ 35,560,251
____________________________________________________________
__________________Total investments in securities (100.5%)
(Cost: $395,865,176)(d) $568,622,301
____________________________________________________________
__________________
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 June 30, 1995, the cost of securities for federal
income tax purposes was $395,865,176 and the aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $178,549,144
Unrealized depreciation (5,792,019)
____________________________________________________________
__________________Net unrealized appreciation $172,757,125
____________________________________________________________
__________________</TABLE>
PAGE
Managers and Officers
Board of Managers
Richard W. Kling
president, IDS Life Insurance Company
Carl N. Platou
president emeritus, Fairview Hospital and
Healthcare Services
Edward Landes
retired, former development consultant
Janis E. Miller
executive vice president, variable assets,
IDS Life Insurance Company
Gordon H. Ritz
president, Con Rad Broadcasting Corp.
Principal Officers
Richard W. Kling
chairman of the board and presidend
Louis C. Fornetti
vice president
Morris Goodwin, Jr.
vice president and treasurer
William A. Stoltzmann
general counsel and assistant secretary
Colleen Curran
secretary
Robert O. Schneider
controller
PAGE
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.
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:
American Express Trust Company
Minneapolis, Minn.
Sub-Custodian
First Bank National Association
St. Paul, Minn.
PAGE
Notes
PAGE
1995 SEMIANNUAL REPORT
IDS Life
Variable Annuity
Fund B
IDS Life Insurance Company
IDS Tower 10
Minneapolis, Minnesota 55440-0010
