PAGE
1996 semiannual report
IDS New Dimensions Fund
(icon of) dimension
The goal of IDS New Dimensions Fund, Inc. is long-term growth of capital.
The Fund invests primarily in common stocks of companies showing
potential for significant growth and operating in areas where economic
or technological changes are occurring.
Distributed by American Express Financial Advisors Inc.
(icon of) dimension
Fast-track stocks
What type of stock has been the driving force behind the dramatic
increases posted by U.S. and foreign stock markets in recent years? The
answer is growth stocks--that is, stocks of companies that have a track
record of increasing their business and profits at a rapid pace. These
companies, some large and well-known, others smaller and newly
discovered, form the foundation of IDS New Dimensions Fund. The Fund
looks for companies from around the world that not only have a history
of continuous growth, but are poised to continue growing due to their
superior management, marketing innovation and/or technological advances.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 24
Board members and officers 28
IDS mutual funds 29
To our shareholders
(Picture of William Pearce)
William R. Pearce
President of the Fund
(Picture of Gordon Fines)
Gordon M. Fines
Portfolio manager
From the president
If you're an experienced investor, you know that 1995 was an unusually
strong year for the U.S. financial markets. Perhaps just as important,
you also know that history shows that bull markets don't last forever.
Though they're often unpredictable, declines--whether they're brief or
long-lasting, moderate or substantial--are always a possibility.
That fact reinforces the need for investors to review periodically their
long-term goals and assess whether their investment program remains on<PAGE>
PAGE
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.
William R. Pearce
From the portfolio manager
IDS New Dimensions Fund recorded another healthy gain during the past six
months, as favorable fundamentals continued to propel the stock market
higher. For the October 1995 through March 1996 period, the first half
of the Fund's fiscal year, Class A shareholders realized a total return
of 10.2%. (A substantial portion of the return was in the form of a
capital gain, which was paid to shareholders last December and reduced
the Fund's net asset value by a like amount at that time.)
Thanks to a low inflation rate, low interest rates and moderate economic
growth, stocks found the environment largely to their liking during the
period, recording advances in every month but October. The relatively few
setbacks proved to be both modest and fleeting, as the market quickly
righted itself in the wake of occasional negative news.
Growth is good
Although a variety of stocks performed positively, those of growth
companies were most often at the forefront, as their generally strong
earnings attracted an increasing amount of investors' capital. To the
particular benefit of this fund, growth stocks in the
technology/telecommunications, health care and financial services sectors
- --which have formed the foundation of our portfolio for some time--
recorded many of the most impressive gains. Among the Fund's more
prominent holdings, Cisco Systems, Pfizer and Citicorp performed
especially well. Although we continue to be optimistic about the long-
term prospects of technology-related companies, we did reduce our
exposure to personal computer manufacturers, whose near-term potential
appeared questionable.
We also enjoyed good results from our stocks of agri-business companies,
including seed, fertilizer and chemical producers. This is a new
investment theme for the Fund that we began to develop late last year.
Monsanto, an agri-chemical supplier that we added to the portfolio, is
a good example of the type of company that we expect to benefit from
less-developed countries' desire to improve their diet.
Slowdown ahead?
Given the remarkable rally the stock market has staged since early 1995,
we think it's reasonable for investors to lower their return expectations
for the rest of this year. In our view, the keys to the market's
direction continue to be economic growth, inflation and long-term
interest rates. If growth remains moderate and inflation and interest
rates stay low, we think the market has a good chance of advancing
further. In any event, at present we are holding largely to the portfolio
mix that has been successful for us, while we look to increase our
exposure to foreign stocks in an effort to enhance the Fund's performance
in the months ahead.
Gordon Fines<PAGE>
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Class A
6-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1996 $18.21
Sept. 30, 1995 $17.24
Increase $ .97
Distributions
Oct. 1, 1995 - March 31, 1996
From income $ 0.15
From capital gains $ 0.60
Total distributions $ 0.75
Total return* +10.2%
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1996 $18.11
Sept. 30, 1995 $17.18
Increase $ .93
Distributions
Oct. 1, 1995 - March 31, 1996
From income $ 0.11
From capital gains $ 0.60
Total distributions $ 0.71
Total return* + 9.8%
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1996 $18.22
Sept. 30, 1995 $17.26
Increase $ .96
Distributions
Oct. 1, 1995 - March 31, 1996
From income $ 0.17
From capital gains $ 0.60
Total distributions $ 0.77
Total return* +10.3%
*The prospectus discusses the effect of sales charges, if any, on the
various classes.
**The total return is a hypothetical investment in the Fund with all
distributions reinvested.<PAGE>
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<TABLE>
<CAPTION>
IDS New Dimensions Fund, Inc.
Your Fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 24.65% of the Fund's net assets.
______________________________________________________________________
Percent Value
(of fund's net assets) (as of Mar. 31, 1996)
______________________________________________________________________
<S> <C> <C>
Cisco Systems 3.49% $278,250,000
A leading designer and builder of devices that link personal computers
for application in the fast-growing business network market.
Citicorp 3.32 264,000,000
The parent of Citibank, the largest bank in the U.S., it has a
substantial worldwide corporate and retail banking presence.
Pfizer 2.86 227,800,000
A leading producer of pharmaceuticals, hospital products, animal health
items, non-prescription medications and specialty chemicals.
General Electric 2.54 202,475,000
A diversified company with interests in manufacturing, broadcasting
(NBC), financial services and technology.
Monsanto 2.51 199,550,000
This company and its subsidiaries manufacture and sell a diverse
line of agricultural products; chemical products, including plastics
and manufactured fibers; pharmaceuticals; and food products, including
low-calorie sweeteners.
Intel 2.14 170,625,000
The world's number one semiconductor manufacturer, Intel produces
microcomputer components, modules and systems.
Johnson & Johnson 2.03 161,437,500
A major producer of health-care products, including consumer
products, medical and dental devices and products and a wide variety
of ethical and over-the-counter drugs.
Boeing 1.96 155,925,000
The largest producer of commercial aircraft in the free world with over
50% of the market.<PAGE>
PAGE
ConAgra 1.94 154,375,000
Engaged in a variety of basic food businesses, including
feed and fertilizer, grain processing and merchandising,
agricultural chemicals, worldwide trading, fresh and processed
red meats, poultry products, and frozen prepared foods and seafood.
First Data 1.86 148,050,000
Operates in one business segment providing high-quality, high-volume
information processing and related services to specific client groups:
the transaction card, payment instruments, teleservices, mutual funds,
health care, receivables and information management industries.
/TABLE
<PAGE>
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Statement of assets and liabilities
IDS New Dimensions Fund, Inc.
March 31, 1996
<TABLE>
<CAPTION>
___________________________________________________________________________________________________________
Assets
___________________________________________________________________________________________________________
<S> <C>
(Unaudited)
Investments in securities, at value (Note 1)
Investments in securities of unaffiliated issuers (identified cost $5,744,971,033) $7,873,683,548
Investments in securities of affiliated issuer (identified cost $51,654,826) 94,300,000
Cash in bank on demand deposit 10,533,803
Dividends and accrued interest receivable 7,209,094
___________________________________________________________________________________________________________
Total assets 7,985,726,445
___________________________________________________________________________________________________________
Liabilities
___________________________________________________________________________________________________________
Payable for investment securities purchased 956,250
Payable upon return of securities loaned (Note 5) 23,100,000
Accrued investment management services fee 430,932
Accrued distribution fee 15,367
Accrued service fee 54,034
Accrued transfer agency fee 52,627
Accrued administrative services fee 16,341
Other accrued expenses 1,167,647
___________________________________________________________________________________________________________
Total liabilities 25,793,198
___________________________________________________________________________________________________________
Net assets applicable to oustanding capital stock $7,959,933,247
___________________________________________________________________________________________________________
Represented by
___________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 4,371,427
Additional paid-in capital 5,616,371,460
Undistributed net investment income 15,523,084
Accumulated net realized gain (Note 1) 152,309,587
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies 2,171,357,689
___________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $7,959,933,247
___________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $5,282,419,293
Class B $ 377,294,502
Class Y $2,300,219,452
Net asset value per share of outstanding capital stock: Class A shares 290,066,804 $ 18.21
Class B shares 20,838,299 $ 18.11
Class Y shares 126,237,627 $ 18.22
See accompanying notes to financial statements. <PAGE>
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Financial statements
Statement of operations
IDS New Dimensions Fund, Inc.
Six months ended March 31, 1996
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Interest $ 24,717,620
Dividends (net of foreign taxes withheld of $403,916) 38,836,523
Dividends earned from affiliate 373,000
_____________________________________________________________________________________________________________
Total income 63,927,143
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 20,438,783
Distribution fee -- Class B 931,767
Transfer agency fee 4,439,395
Incremental transfer agency fee -- Class B 21,608
Service fee
Class A 4,206,893
Class B 217,084
Administrative services fee 1,373,601
Compensation of board members 50,089
Compensation of officers 40,325
Custodian fees 202,694
Postage 484,196
Registration fees 506,585
Reports to shareholders 78,067
Audit fees 16,500
Administrative 9,500
Other 25,140
_____________________________________________________________________________________________________________
Total expenses 33,042,227
Earnings credits on cash balances (Note 2) (17,164)
_____________________________________________________________________________________________________________
Total net expenses 33,025,063
_____________________________________________________________________________________________________________
Investment income -- net 30,902,080
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions (Note 3) 211,514,879
Net change in unrealized appreciation or depreciation of investments and
on translation of assets and liabilities in foreign currencies 456,758,812
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 668,273,691
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $ 699,175,771
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.<PAGE>
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Financial statements
Statements of changes in net assets
IDS New Dimensions Fund, Inc.
_____________________________________________________________________________________________________________
Operations and distributions March 31, 1996 Sept. 30, 1995
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<C>
Investment income -- net $ 30,902,080 $ 56,020,175
Net realized gain on investments and foreign currency 211,514,879 188,034,728
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 456,758,812 1,122,806,020
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 699,175,771 1,366,860,923
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (39,431,879) (37,824,704)
Class B (1,490,986) --
Class Y (19,130,920) --
Net realized gain
Class A (162,150,758) (161,781,539)
Class B (8,111,389) --
Class Y (68,560,165) --
Excess distributions of realized gain
Class A -- (10,005)
_____________________________________________________________________________________________________________
Total distributions (298,876,097) (199,616,248)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 592,593,622 1,277,766,445
Class B shares 217,830,357 139,503,525
Class Y shares 543,900,689 1,678,216,434
Reinvestment of distributions at net asset value
Class A shares 198,729,479 197,521,609
Class B shares 9,571,103 --
Class Y shares 87,691,085 --
Payments for redemptions
Class A shares (357,531,236) (2,058,310,273)
Class B shares (Note 2) (13,210,639) (2,112,953)
Class Y shares (236,043,582) (180,172,610)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 1,043,530,878 1,052,412,177
_____________________________________________________________________________________________________________
Total increase in net assets 1,443,830,552 2,219,656,852
Net assets at beginning of period 6,516,102,695 4,296,445,843
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$15,523,084 and $44,674,789) $7,959,933,247 $6,516,102,695
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
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Notes to financial statements
IDS New Dimensions Fund, Inc.
(Unaudited as to March 31, 1996)
______________________________________________________________________________
1. Summary of significant accounting policies
The Fund is registered under the Investment Company Act of 1940 (as amended)
as a diversified, open-end management investment company. The Fund invests
primarily in common stocks of companies showing potential for significant
growth and operating in areas where economic or technological changes are
occurring. The Fund offers Class A, Class B and Class Y shares. Class A shares
are sold with a front-end sales charge. Class B shares may be subject to a
contingent deferred sales charge. Class B shares automatically convert to
Class A after eight years. Class Y shares have no sales charge and are offered
only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation and other
rights, and the same terms and conditions, except that the level of
distribution fee, transfer agency fee and service fee (class specific
expenses) differs among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
Significant accounting policies followed by the Fund are summarized below:
Use of estimates
The preparation of financial statements in conformity with generally accepted
accounting principles 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.
Valuation of securities
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price; securities for which market quotations
are not readily available are valued at fair value according to methods
selected in good faith by the board. Determination of fair value involves,
among other things, reference to market indexes, matrixes and data from
independent brokers. Short-term securities 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; those maturing in 60 days or less are valued
at amortized cost.
Option transactions
In order to produce incremental earnings, protect gains and facilitate buying
and selling of securities for investment purposes, the Fund may buy or write
options traded on any U.S. or foreign exchange or in the over-the-counter
market where the completion of the obligation is dependent upon the credit
standing of the other party. The Fund also may buy and sell put and call
options and write covered call options on portfolio securities and may write
<PAGE>
PAGE
cash-secured put options. 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.
Futures transactions
In order to gain exposure to or protect itself from changes in the market, the
Fund may buy and sell stock index futures contracts traded on any U.S. or
foreign exchange. The Fund also may buy or write put and call options on these
futures contracts. 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 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
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 exchange rate on the transaction
date. The effect of changes in foreign exchange rates on realized and
unrealized security gains or losses is reflected as a component of such gains
or losses. In the statement of operations, net realized gains or losses from
foreign currency transactions may arise from sales of foreign currency, closed
forward contracts, exchange gains or losses realized between the trade date
and settlement dates on securities transactions, and other translation gains
or losses on dividends, interest income and foreign withholding taxes.
The Fund may 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.
<PAGE>
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Federal taxes
Since the Fund's policy is to comply with all sections of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders, no provision for income or excise taxes is
required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of the deferral of
losses on certain futures contracts, the recognition of certain foreign
currency gains (losses) as ordinary income (loss) for tax purposes and losses
deferred due to "wash sale" transactions. The character of distributions made
during the year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax purposes. The
effect on dividend distributions of certain book-to-tax differences is
presented as "excess distributions" in the statement of changes in net assets.
Also, due to the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or realized
gains (losses) were recorded by the Fund.
Dividends to shareholders
An annual dividend declared and paid at the end of the calendar year from net
investment income is reinvested in additional shares of the Fund at net asset
value or payable in cash. Capital gains, when available, are distributed along
with the income dividend.
Other
Security transactions are accounted for on the date securities are purchased
or sold. Dividend income is recognized on the ex-dividend date and interest
income, including level-yield amortization of premium and discount, is accrued
daily.
______________________________________________________________________________
2. Expenses and sales charges
Effective March 20, 1995, the Fund entered into agreements with American
Express Financial Corporation (AEFC) for managing its portfolio, providing
administrative services and serving as transfer agent as follows: Under its
Investment Management Services Agreement, AEFC determines which securities
will be purchased, held or sold. The management fee is a percentage of the
Fund's average daily net assets in reducing percentages from 0.6% to 0.5%
annually. The fee is adjusted upward or downward by a performance incentive
adjustment based on the Fund's average daily net assets over a rolling 12-
month period as measured against the change in the Lipper Growth Fund Index.
The maximum adjustment is 0.12% of the Fund's average daily net assets after
deducting 1% from the performance difference. If the performance difference
was less than 1%, the adjustment will be zero. The adjustment increased the
fee by $1,031,184 for the six months ended March 31, 1996.
Under an Administrative Services Agreement, the Fund pays AEFC for
administration and accounting services at a percentage of the Fund's average
daily net assets in reducing percentages from 0.05% to 0.03% annually.
<PAGE>
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Under a separate Transfer Agency Agreement, AEFC maintains shareholder
accounts and records. The Fund pays AEFC an annual fee per shareholder account
for this service as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the Fund entered into agreements with American
Express Financial Advisors Inc. for distribution and shareholder servicing-
related services as follows: Under a Plan and Agreement of Distribution, the
Fund pays a distribution fee at an annual rate of 0.75% of the Fund's average
daily net assets attributable to Class B shares for distribution-related
services.
Under a Shareholder Service Agreement, the Fund pays a fee for service
provided to shareholders by financial advisors and other servicing agents. The
fee is calculated at a rate of 0.175% of the Fund's average daily net assets
attributable to Class A and Class B shares.
AEFC will assume and pay any expenses (except taxes and brokerage commissions)
that exceed the most restrictive applicable state expense limitation.
Sales charges received by American Express Financial Advisors Inc. for
distributing Fund shares were $9,822,197 for Class A and $78,366 for Class B
for the six months ended March 31, 1996. The Fund also pays custodian fees to
American Express Trust Company, an affiliate of AEFC.
During the six months ended March 31, 1996, the Fund's custodian and transfer
agency fees were reduced by $17,164 as a result of earnings credits from
overnight cash balances.
The Fund has a retirement plan for its independent board members. Upon
retirement, board members receive monthly payments equal to one-half of the
retainer fee for as many months as they served as board members up to 120
months. There are no death benefits. The plan is not funded, but the Fund
recognizes the cost of payments during the time board members serve on the
board. The retirement plan expense amounted to $49,047 for the six months
ended March 31, 1996. The plan was terminated on April 30, 1996. The total
liability for the plan is $169,364, which will be paid out at some future
date.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $2,304,165,816 and $1,676,250,722, respectively, for
the six months ended March 31, 1996. Realized gains and losses are determined
on an identified cost basis.
Brokerage commissions paid to brokers affiliated with AEFC were $236,136 for
the six months ended March 31, 1996.
<PAGE>
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4. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
<TABLE>
<CAPTION>
Six months ended March 31, 1996
Class A Class B Class Y
<S> <C> <C> <C>
_______________________________________________________________________________________
Sold 33,433,050 12,310,314 30,703,150
Issued for reinvested 11,499,960 556,427 5,077,360
distributions
Redeemed (20,196,482) (744,529) (13,368,133)
_______________________________________________________________________________________
Net increase 24,736,528 12,122,212 22,412,377
_______________________________________________________________________________________
Year ended Sept. 30, 1995
Class A Class B* Class Y*
_______________________________________________________________________________________
Sold 87,791,383 8,845,958 115,253,413
Issued for reinvested 14,863,540 -- --
distributions
Redeemed (142,988,018) (129,871) (11,428,163)
_______________________________________________________________________________________
Net increase (decrease) (40,333,095) 8,716,087 103,825,250
_______________________________________________________________________________________
*Inception date was March 20, 1995.
_______________________________________________________________________________________
5. Lending of portfolio securities
At March 31, 1996, securities valued at $22,793,750 were on loan to brokers. For collateral,
the Fund received $23,100,000 in cash. Income from securities lending amounted to $30,169
for the six months ended March 31, 1996. The risks to the Fund of securities lending are
that the borrower may not provide additional collateral when required or return the
securities when due.
</TABLE>
<PAGE>
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6. Financial highlights
The tables below show certain important financial
information for evaluating the Fund's results.
Fiscal period ended Sept. 30,
Per share income and capital changes*
<TABLE>
<CAPTION>
Class A
1996** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $17.24 $14.06 $14.87 $12.57 $12.01 $ 9.45
beginning of period
Income from investment operations:
Net investment income .07 .16 .09 .06 .06 .15
Net gains (losses) 1.65 3.64 (.18) 3.01 1.13 3.59
(both realized
and unrealized)
Total from investment 1.72 3.80 (.09) 3.07 1.19 3.74
operations
Less distributions:
Dividends from net (.15) (.12) (.07) (.04) (.14) (.22)
investment income
Distributions from (.60) (.50) (.65) (.73) (.49) (.96)
realized gains
Total distributions (.75) (.62) (.72) (.77) (.63) (1.18)
Net asset value, $18.21 $17.24 $14.06 $14.87 $12.57 $12.01
end of period
Ratios/supplemental data
Class A
1996** 1995 1994 1993 1992 1991
Net assets, end of period $5,282 $4,575 $4,296 $3,544 $2,253 $1,553
(in millions)
Ratio of expenses to .94%+ .90% .90% .92% .95% .90%
average daily net assets
Ratio of net income .84%+ 1.07% .75% .51% .57% 1.65%
to average daily net assets
Portfolio turnover rate 26% 54% 48% 60% 75% 81%
(excluding short-term
securities)
Total return++ 10.2% 28.4% (0.7%) 25.1% 9.6% 43.3%<PAGE>
PAGE
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended March 31, 1996 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge. <PAGE>
PAGE
Financial highlights
Fiscal period ended Sept. 30,
Per share income and capital changes*
Class B Class Y
1996*** 1995** 1996*** 1995**
Net asset value, $17.18 $14.21 $17.26 $14.21
beginning of period
Income from investment operations:
Net investment income (.02) .02 .08 .10
(loss)
Net gains 1.66 2.95 1.05 2.95
(both realized
and unrealized)
Total from investment 1.64 2.97 1.13 3.05
operations
Less distributions:
Dividends from net (.11) -- (.17) --
investment income
Distributions from (.60) -- (.60) --
realized gains
Total distributions (.71) -- (.77) --
Net asset value, $18.11 $17.18 $18.22 $17.26
end of period
Ratios/supplemental data
Class B Class Y
1996*** 1995** 1996*** 1995**
Net assets, end of period $ 377 $ 150 $2,300 $1,792
(in millions)
Ratio of expenses to 1.71%+ 1.72%+ .77%+ .76%+
average daily net assets
Ratio of net income .08%+ .33%+ 1.01%+ 1.26%+
to average daily net assets
Portfolio turnover rate 26% 54% 26% 54%
(excluding short-term
securities)
Total return++ 9.8% 20.9% 10.3% 21.5%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B and Class Y.
***Six months ended March 31, 1996 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
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<TABLE>
<CAPTION>
Investments in securities
IDS New Dimensions Fund, Inc. (Percentages represent value of
March 31, 1996 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (88.4%)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Aerospace & defense (5.2%)
Boeing
Lockheed Martin 300,000 22,762,500
Loral 1,500,000 73,500,000
Raytheon 1,560,000 79,950,000
United Technologies 700,000 78,575,000
______________
Total 410,712,500
_____________________________________________________________________________________________________________________________
Airlines (0.8%)
AMR 700,000 (b) 62,650,000
_____________________________________________________________________________________________________________________________
Automotive & related (0.8%)
Chrysler 1,000,000 62,250,000
_____________________________________________________________________________________________________________________________
Banks and savings & loans (5.1%)
Citicorp 3,300,000 264,000,000
Norwest 2,700,000 99,225,000
State Street Boston 800,000 40,000,000
______________
Total 403,225,000
_____________________________________________________________________________________________________________________________
Beverages & tobacco (2.5%)
Coca-Cola 1,600,000 132,200,000
PepsiCo 1,100,000 69,575,000
______________
Total 201,775,000
_____________________________________________________________________________________________________________________________
Building materials (0.4%)
Tyco International 1,000,000 35,750,000
_____________________________________________________________________________________________________________________________
Chemicals (3.2%)
IMC Global 1,000,000 36,500,000
Monsanto 1,300,000 199,550,000
Praxair 525,000 20,934,375
______________
Total 256,984,375
See accompanying notes to investments in securities.<PAGE>
PAGE
Communications equipment (1.6%)
ADC Telecommunications 1,000,000 (b) 34,500,000
Andrew 200,000 (b) 7,650,000
StrataCom 1,000,000 (b) 36,625,000
Tellabs 1,000,000 (b) 48,375,000
______________
Total 127,150,000
_____________________________________________________________________________________________________________________________
Computers & office equipment (15.8%)
Ceridian 1,780,000 (b) 76,540,000
Cisco Systems 6,000,000 (b) 278,250,000
Computer Associates Intl 1,400,000 100,275,000
Computer Sciences 1,130,000 (b) 79,523,750
First Data 2,100,000 148,050,000
Hewlett-Packard 1,520,000 142,880,000
Informix 600,000 (b) 15,825,000
Intl Business Machines 400,000 44,450,000
Microsoft 1,000,000 (b) 103,125,000
Oracle Systems 2,500,000 (b) 117,812,500
Parametric Technology 2,400,000 (b) 93,900,000
3Com 1,500,000 (b) 59,812,500
______________
Total 1,260,443,750
_____________________________________________________________________________________________________________________________
Electronics (3.5%)
AMP 950,000 39,306,250
Applied Materials 600,000 (b) 20,925,000
Intel 3,000,000 170,625,000
Linear Technology 500,000 20,875,000
Vishay Intertechnology 1,000,000 (b) 27,000,000
______________
Total 278,731,250
_____________________________________________________________________________________________________________________________
Energy (2.8%)
Amoco 300,000 21,675,000
Exxon 1,000,000 81,625,000
Mobil 1,000,000 115,875,000
______________
Total 219,175,000
_____________________________________________________________________________________________________________________________
Energy equipment & services (0.9%)
Fluor 1,000,000 68,250,000
_____________________________________________________________________________________________________________________________
Financial services (2.2%)
Dean Witter 1,300,000 74,425,000
Household Intl 600,000 40,350,000
MBNA 1,400,000 41,475,000
Morgan Stanley Group 400,000 20,700,000
______________
Total 176,950,000
_____________________________________________________________________________________________________________________________
Food (2.8%)
ConAgra 3,800,000 154,375,000
Pioneer Hi-Bred Intl 400,000 21,050,000
Safeway 1,500,000 42,750,000
______________
Total 218,175,000
<PAGE>
PAGE
Health care (11.2%)
ALZA 600,000 (b) 18,450,000
Amgen 2,400,000 (b) 139,500,000
Boston Scientific 1,200,000 (b) 55,200,000
Guidant 360,000 19,485,000
Johnson & Johnson 1,750,000 161,437,500
Medtronic 2,400,000 143,100,000
Merck 1,800,000 112,050,000
Pfizer 3,400,000 227,800,000
Schering-Plough 300,000 17,437,500
______________
Total 894,460,000
_____________________________________________________________________________________________________________________________
Health care services (1.9%)
HBO & Co 550,000 51,837,500
Tenet Healthcare 1,000,000 (b) 21,000,000
United Healthcare 1,300,000 79,950,000
______________
Total 152,787,500
_____________________________________________________________________________________________________________________________
Household products (3.7%)
Duracell Intl 1,400,000 69,475,000
Gillette 2,100,000 108,675,000
Procter & Gamble 1,400,000 118,650,000
______________
Total 296,800,000
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.2%)
Case 600,000 30,525,000
Deere 1,000,000 41,750,000
Illinois Tool Works 350,000 22,618,750
______________
Total 94,893,750
_____________________________________________________________________________________________________________________________
Insurance (3.3%)
ACE Limited 600,000 26,775,000
Amer Intl Group 1,400,000 131,075,000
General Re 300,000 43,725,000
Progressive Corp Ohio 500,000 22,312,500
UNUM 600,000 35,700,000
______________
Total 259,587,500
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (1.9%)
Disney (Walt) 700,000 44,712,500
Marriott Intl 920,000 43,700,000
Mattel 750,000 20,343,750
Mirage Resorts 1,000,000 (b) 43,875,000
______________
Total 152,631,250
_____________________________________________________________________________________________________________________________
Media (0.8%)
Infinity Broadcasting Cl A 600,000 (b) 26,025,000
Time Warner 1,000,000 40,875,000
______________
Total 66,900,000
<PAGE>
PAGE
Metals (1.3%)
Aluminum Co of America 1,100,000 68,887,500
Newmont Mining 560,000 31,710,000
______________
Total 100,597,500
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (4.1%)
Alco Standard 1,650,000 86,006,250
Emerson Electric 500,000 40,375,000
General Electric 2,600,000 202,475,000
______________
Total 328,856,250
_____________________________________________________________________________________________________________________________
Paper & packaging (0.5%)
Kimberly-Clark 520,000 38,740,000
_____________________________________________________________________________________________________________________________
Restaurants & lodging (3.4%)
Boston Chicken 600,000 (b) 20,437,500
Hospitality Franchise System 1,700,000 82,662,500
McDonald's 3,000,000 144,000,000
Promus Hotel 850,000 (b) 22,100,000
______________
Total 269,200,000
_____________________________________________________________________________________________________________________________
Retail (1.8%)
Albertson's 1,100,000 40,837,500
CUC Intl 700,000 (b) 20,475,000
Federated Dept Stores 1,200,000 (b) 38,700,000
Home Depot 850,000 40,693,750
______________
Total 140,706,250
_____________________________________________________________________________________________________________________________
Textiles and apparel (0.3%)
NIKE Cl B 300,000 24,375,000
_____________________________________________________________________________________________________________________________
Utilities - telephone (2.8%)
AirTouch Communications 1,400,000 (b) 43,575,000
AT&T 700,000 42,875,000
GTE 1,700,000 74,587,500
MFS Communications 350,000 (b) 21,787,500
SBC Communications 800,000 42,100,000
______________
Total 224,925,000
_____________________________________________________________________________________________________________________________
Foreign (2.6%)(c)
British Airways 400,000 32,800,000
News Corp 1,000,000 23,000,000
Reuters Holdings ADR 350,000 (d) 22,793,750
Royal Dutch Petroleum 150,000 21,187,500
Schlumberger 600,000 47,475,000
SmithKline Beecham 1,200,000 61,800,000
______________
Total 209,056,250
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $4,905,489,359) $7,036,738,125
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Options purchased (--%)
_____________________________________________________________________________________________________________________________
Issuer Number of Exercise Expiration Value(a)
contracts price date
_____________________________________________________________________________________________________________________________
Put
Intel 10,000 $55 April 1996 $ 1,250,000
_____________________________________________________________________________________________________________________________
Total options purchased
(Cost: $3,404,800) $ 1,250,000
_____________________________________________________________________________________________________________________________
Short-term securities (10.4%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
U.S. government agency (0.1%)
Federal Natl Mtge Assn Disc Nt
05-03-96 5.23% $10,000,000 $ 9,949,600
_____________________________________________________________________________________________________________________________
Commercial paper (10.2%)
Alabama Power
05-16-96 5.11 4,600,000 4,566,762
05-21-96 5.12 4,200,000 4,166,139
05-30-96 5.16 6,900,000 6,834,047
06-11-96 5.14 7,700,000 7,612,156
Albertson's
05-08-96 5.40 6,000,000 5,965,095
ABN Amro
05-20-96 5.15 11,000,000 10,913,655
08-27-96 5.06 15,000,000 14,657,104
American General Finance
05-01-96 5.20 11,100,000 11,049,088
Ameritech
05-28-96 5.26 10,000,000 (f) 9,907,526
06-07-96 5.17 6,800,000 (f) 6,726,617
06-07-96 5.17 7,900,000 7,814,746
Associates
North America
04-23-96 5.19 14,600,000 14,549,873
04-26-96 5.37 5,000,000 4,979,937
06-04-96 5.30 5,000,000 4,948,354
AT&T Capital
04-01-96 5.40 15,000,000 14,995,442
CAFCO
04-02-96 5.38 5,000,000 (f) 4,997,586
05-02-96 5.19 13,900,000 (f) 13,834,380
05-15-96 5.31 18,000,000 17,876,770
05-22-96 5.32 1,800,000 1,785,236
06-20-96 5.32 5,500,000 5,429,623
07-01-96 5.32 7,800,000 (f) 7,687,576
Cargill
06-19-96 5.10 5,000,000 (f) 4,936,792
06-26-96 5.33 6,000,000 5,935,675<PAGE>
PAGE
Ciesco LP
04-03-96 5.24 6,300,000 6,296,346
04-12-96 5.19 5,000,000 4,989,682
05-07-96 5.15 7,000,000 (f) 6,959,705
CIT Group Holdings
04-24-96 5.19 18,000,000 17,935,625
05-24-96 5.37 5,000,000 4,959,285
Coca-Cola
04-26-96 5.27 4,600,000 4,580,889
06-14-96 5.31 8,100,000 8,003,846
Colgate-Palmolive
04-23-96 5.33 3,300,000 (f) 3,288,340
06-26-96 5.34 9,000,000 (f) 8,876,512
Commercial Credit
04-09-96 5.23 6,500,000 6,490,611
Commerzbank U.S. Finance
04-22-96 5.35 7,900,000 7,871,688
06-12-96 5.30 18,000,000 17,791,875
06-13-96 5.30 10,900,000 10,772,288
Consolidated Rail
05-10-96 5.19 13,000,000 (f) 12,918,239
CPC Intl
06-20-96 5.12 10,000,000 (f) 9,872,042
06-20-96 5.15 5,300,000 (f) 5,232,182
Dean Witter
04-22-96 5.32 5,600,000 5,581,038
Dresdner U.S. Finance
05-22-96 5.23 15,000,000 14,876,966
Fleet Funding
05-10-96 5.32 8,500,000 (f) 8,448,887
Gannett
04-12-96 5.36 12,000,000 (f) 11,974,021
04-17-96 5.31 9,000,000 (f) 8,973,625
Gateway Fuel
04-12-96 5.33 9,775,000 9,754,245
General Electric Capital Services
05-01-96 5.39 15,000,000 14,928,400
Goldman Sachs
04-12-96 5.44 5,600,000 5,588,110
04-18-96 5.29 7,300,000 7,279,696
Hewlett-Packard
07-19-96 4.98 5,000,000 4,914,133
Kredietbank North America Finance
09-03-96 5.16 10,000,000 9,760,806
Lincoln Natl
04-04-96 5.24 7,900,000 (f) 7,894,272
04-16-96 5.27 4,700,000 (f) 4,688,348
04-16-96 5.28 7,400,000 (f) 7,381,619
Merrill Lynch
04-12-96 5.22 7,700,000 7,684,506
04-26-96 5.31 5,600,000 5,576,802
05-13-96 5.39 3,000,000 2,979,907
06-25-96 5.32 5,900,000 5,819,957
Metlife Funding
04-25-96 5.17 7,200,000 7,171,733<PAGE>
PAGE
Natl Australia Funding
(Delaware)
04-08-96 5.43 9,600,000 9,585,324
05-17-96 5.28 10,000,000 9,927,883
NationsBank
04-08-96 5.42 5,000,000 5,000,220
04-11-96 5.44 10,000,000 10,000,753
05-21-96 5.12 8,000,000 7,997,319
07-09-96 5.50 10,000,000 10,001,155
Nestle Capital
05-06-96 5.09 10,600,000 10,539,771
Norfolk Southern
04-29-96 5.20 8,200,000 (f) 8,160,243
06-18-96 5.33 7,400,000 (f) 7,307,593
07-02-96 5.32 13,600,000 (f) 13,401,893
Penney (JC) Funding
04-18-96 5.17 8,000,000 7,978,340
Pepsico
04-29-96 5.37 3,300,000 3,285,288
05-02-96 5.37 5,800,000 (f) 5,771,556
Procter & Gamble
05-22-96 5.10 8,800,000 8,726,554
SAFECO Credit
04-16-96 5.29 8,000,000 7,980,091
04-19-96 5.17 10,600,000 10,566,480
04-24-96 5.39 5,000,000 4,981,354
St. Paul Companies
04-17-96 5.29 3,500,000 (f) 3,490,777
Sandoz
04-15-96 5.17 10,000,000 (f) 9,975,516
04-15-96 5.29 10,000,000 9,976,578
04-18-96 5.32 2,100,000 2,094,126
05-14-96 5.31 7,000,000 6,953,887
05-23-96 5.11 700,000 694,157
Siemens
06-03-96 5.33 7,500,000 7,427,400
06-10-96 5.35 11,200,000 11,073,953
Southern California Gas
04-08-96 5.19 6,300,000 (f) 6,287,995
04-26-96 5.35 10,000,000 (f) 9,958,287
06-03-96 5.16 5,166,000 (f) 5,113,436
09-03-96 5.03 10,269,000 (f) 10,023,371
Southwestern Bell Capital
06-27-96 5.34 15,900,000 15,680,580
Transamerica Financial
04-02-96 5.35 7,850,000 7,846,013
05-09-96 5.20 7,000,000 6,956,915
United Parcel
05-23-96 5.09 20,000,000 19,833,049
06-06-96 5.10 14,500,000 14,345,756
USAA Capital
05-17-96 5.31 3,300,000 3,276,812
05-20-96 5.34 9,500,000 9,428,671
05-24-96 5.08 9,500,000 9,417,903
USL Capital
04-02-96 5.21 11,300,000 11,295,113
04-18-96 5.25 7,000,000 6,980,715<PAGE>
PAGE
U S WEST Communications
05-23-96 5.14 6,200,000 6,148,245
______________
Total 815,777,477
_____________________________________________________________________________________________________________________________
Letter of credit (0.1%)
BankAmerica-
AES Barbers Point
04-19-96 5.37 10,000,000 9,968,346
Total short-term securities
(Cost: $836,076,874) $ 835,695,423
_____________________________________________________________________________________________________________________________
Total investments in securities of unaffiliated issuers
(Cost: $5,744,971,033) $7,873,683,548
_____________________________________________________________________________________________________________________________
Investments in securities of affiliated issuer (e)
_____________________________________________________________________________________________________________________________
Common stock (1.2%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Reynolds & Reynolds Cl A 2,300,000 $ 94,300,000
_____________________________________________________________________________________________________________________________
Total investments in securities of affiliated issuer
(Cost: $51,654,826) $ 94,300,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $5,796,625,859)(g) $7,967,983,548
_____________________________________________________________________________________________________________________________
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) Foreign security values are stated in U.S. dollars.
(d) Security is partially or fully on loan. See Note 5 to the financial statements.
(e) Investments representing 5% or more of the outstanding voting securities of the issuer.
(f) 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." This security has been determined to be liquid under
guidelines established by the board.
(g) At March 31, 1996, the cost of securities for federal income tax purposes was approximately
$5,796,626,000 and the approximate aggregate gross unrealized appreciation and depreciation based on
that cost was:
Unrealized appreciation $2,205,973,000
Unrealized depreciation (34,615,000)
________________________________________________________________________________________________
Net unrealized appreciation $2,171,358,000
________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
Board members and officers
Board members and officers of the Fund
_____________________________________________________________________
President and interested board member
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent board members
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Readers's Digest Association, Inc.
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested board members who are officers and/or employees of AEFC
William H. Dudley
Executive vice president, AEFC.
David R. Hubers
President and chief executive officer, AEFC.
John R. Thomas
Senior vice president, AEFC.
_____________________________________________________________________
Officers who also are officers and/or employees of AEFC
Peter J. Anderson
Vice President of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
___________________________________________________________________<PAGE>
PAGE
Other officer
Leslie L. Ogg
Vice president general Counsel and secretary of all funds in
the IDS MUTUAL FUND GROUP.
Refer to the SAI for the board members' and officers' biographies.<PAGE>
PAGE
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposit (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income.
Secondary objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) two coins
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher rated,
lower risk bond categories, or the equivalent, and in government bonds.
(icon of) greek column
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline<PAGE>
PAGE
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the timely
payment of principal and interest by the U.S. government, its agencies
and instrumentalities. Seeks a high level of current income and
safety of principal consistent with its type of investments.
(icon of) shield with eagle head
Tax-exempt income investments
These funds provide tax-free income by investing in municipal bonds.
The income is generally free from federal income tax. Risk varies
by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities
to provide income to residents of each respective state that is
exempt from federal, state and local income taxes. (New York
is the only state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk bond
categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with star
Growth and income investments
These funds focus on securities of medium to large, well-established
companies that offer long-term growth of capital and reasonable income
from dividends and interest. Moderate risk.
<PAGE>
PAGE
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20%
of its assets in the U.S. market.
(icon of) three flags
IDS Managed Retirement Fund
Invests in U.S. equity securities, U.S. and foreign debt
securities, foreign equity securities and money market
instruments. The fund provides diversification among these
major investment categories and has a target mix that
represents the way the fund's investments will be allocated
over the long term.
(icon of) bird in a nest
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of
capital and income.
(icon of) three pine trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) light bulb
<PAGE>
PAGE
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high current
income and, secondarily, to benefit from the growth potential offered
by stock investments.
(icon of) two puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy.
These companies offer above-average potential for long-term growth.
(icon of) world
<PAGE>
PAGE
IDS New Dimensions Fund
Invests primarily in companies with significant growth
potential due to superiority in technology, marketing or management.
The fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic companies
that explore for, mine and process or distribute gold and other
precious metals. This is the most aggressive and most speculative
IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your financial
advisor or writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534. Read it carefully before you invest or
send money.
<PAGE>
PAGE
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota:
800-437-3133
Mpls./St. Paul area:
671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS New Dimensions Fund
IDS Tower 10
Minneapolis, MN 55440-0010
