<PAGE>
PAGE 1
IDS Progressive Fund
1995 annual report
(prospectus enclosed)
(Icon of) shooting star
The goal of IDS Progressive Fund, Inc. is long-term growth of
capital. The Fund invests primarily in undervalued common stocks.
(This annual report includes a prospectus that describes in detail
the Fund's objective, investment policies, risks, sales charges,
fees and other matters of interest. Please read the prospectus
carefully before you invest or send money.)
Distributed by American Express Financial Advisors Inc.<PAGE>
PAGE 2
(icon of) shooting star
The power of patience
Everyone likes to get a bargain. In the investment world, bargains
are known as "value" stocks -- stocks whose low prices don't
reflect the true worth of their respective companies. In the case
of Progressive Fund, the focus is on small-company value stocks,
which can get overlooked as investors try to find a new
"highflier." Many of these companies have already proved
themselves in the marketplace and are financially sound, but their
stocks are currently bargain-priced. Patient investors may
benefit, however, when such stocks get rediscovered and eventually
rise to their fair values.<PAGE>
PAGE 3
Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the Fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the Fund in detail.
1995 annual report
From the president 4
From the portfolio manager 4
Ten largest holdings 6
Making the most of your fund 7
Long-term performance 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 21
IDS mutual funds 24
Federal income tax information 27
1995 prospectus
The Fund in brief
Goal 3p
Types of Fund investments and their risks 3p
Manager and distributor 3p
Portfolio manager 3p
Alternative purchase arrangements 3p
Sales charge and Fund expenses 4p
Performance
Financial highlights 6p
Total returns 8p
Investment policies and risks
Facts about investments and their risks 10p
Alternative investment option 13p
Valuing Fund shares 13p
How to purchase, exchange or redeem shares
Alternative purchase arrangements 14p
How to purchase shares 17p
How to exchange shares 20p
How to redeem shares 20p
Reductions and waivers of the sales charge 24p
Special shareholder services
Services 28p
Quick telephone reference 28p
<PAGE>
PAGE 4
Distributions and taxes
Dividend and capital gain distributions 29p
Reinvestments 30p
Taxes 31p
How to determine the correct TIN 32p
How the Fund is organized
Shares 33p
Voting rights 33p
Shareholder meetings 33p
Directors and officers 33p
Investment manager and transfer agent 35p
Distributor 36p
About American Express Financial Corporation
General information 38p
Appendix
Descriptions of derivative instruments 39p
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 5
To our shareholders
(Picture of William Pearce)
William R. Pearce
President of the Fund
(Picture of Michael Garbisch)
Michael Garbisch
Portfolio manager
From the president
As I indicated in the Fund's previous reports, new agreements
between the Fund and American Express Financial Corporation (AEFC)
were approved by shareholders in November 1994. The new agreements
became effective when the Fund began offering multiple classes of
shares on March 20, 1995.
The advantage of offering more than a single class of shares is
that investors may choose how they wish to pay sales charges. A
portion of these charges compensates your American Express
financial advisor (formerly called your IDS planner), who is
committed to providing you with outstanding services.
Adding new classes of mutual fund shares does make the presentation
of financial information in this report more complex. However, we
will continue our effort to make the reports easier to read and
understand. Meanwhile, your American Express financial advisor is
available to answer your questions.
(signature)
William R. Pearce
From the portfolio manager
A very positive investment environment developed during the past 12
months, propelling the stock market to its best sustained advance
in recent years. Although it was unable to keep up with the often-
breakneck pace of the market as a whole, IDS Progressive Fund did
provide shareholders with a total return well into double digits
for the fiscal year (October 1994 through September 1995).
Unlike last year, stocks found conditions much to their liking in
1995. After stumbling in the opening months of the Fund's fiscal
year, the market soon found itself facing an onslaught of good
news: surprisingly strong corporate profits, an ongoing low
inflation rate and falling long-term interest rates -- a winning
formula for stocks if ever there was one.
Technology leads the way
During most of the ensuing months, growth stocks -- those of
companies boasting above-average profit patterns -- exhibited the
greatest gains. Within the growth group, technology stocks, buoyed
by often-outstanding profit reports and investor enthusiasm related
to growth opportunities within that industry, led the advance.
And, with the exception of a late-summer slump, that trend powered
the market through the end of the Fund's fiscal year.
<PAGE>
PAGE 6
To the disadvantage of this Fund in the past year, few technology
stocks fit with our value-oriented investment style, which focuses
on buying stocks of well-established, high-quality companies at
bargain prices. (To be sure, there are a number of top-quality
technology companies, but their stocks typically trade at premium
prices and are subject to greater risk if the market changes
course.) In addition, our higher-than-average cash reserve and
poor-performing foreign stocks tempered the fund's return for the
12 months. At times, our more-conservative approach meant lagging
behind the market's pace, but on other occasions it meant holding
up better during slumps. But, all in all, it resulted in
relatively consistent progress.
Biggest benefits
As for the positive factors influencing the Fund's performance, two
stand out. First, we maintained a well-above-average exposure to
stocks of financial services firms, particularly banks, savings and
loans, and insurance companies. Thanks to falling long-term
interest rates and a takeover trend in that industry, those stocks
enjoyed generally excellent gains and provided the biggest boost to
our portfolio. Also benefitting performance, but to a lesser
degree, were our health-care holdings. As for portfolio shifts, we
sharply reduced our holdings among retailers, which proved to be a
disappointment during the past year.
Looking to the current fiscal year, although the environment
appears to remain largely favorable, we don't expect the market,
especially technology-related growth stocks, to repeat their recent
exceptional performance. If that proves true, we think there's a
good chance that the market's long-term trend of rewarding
consistent, good-quality companies in a broad range of less-risky
industries will reassert itself -- to the benefit of this Fund and
its shareholders.
(signature)
Michael Garbisch
Class A
12-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 1995 $7.66
Sept. 30, 1994 $6.94
Increase $0.72
Distributions
Oct. 1, 1994 - Sept. 30, 1995
From income $0.32
From capital gains $0.10
Total distributions $0.42
Total return** +17.6%***
<PAGE>
PAGE 7
Class B
March 20, 1995 - Sept. 30, 1995
(All figures per share)
Net asset value (NAV)
Sept. 30, 1995 $7.63
March 20, 1995* $6.88
Increase $0.75
Distributions
March 20, 1995* - Sept. 30, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return** +10.9%***
Class Y
March 20, 1995 - Sept. 30, 1995
(All figures per share)
Net asset value (NAV)
Sept. 30, 1995 $7.67
March 20, 1995* $6.88
Increase $0.79
Distributions
March 20, 1995* - Sept. 30, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return** +11.5%***
* Inception date.
** 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>
PAGE 8
IDS Progressive Fund, Inc.
Your Fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 19.14% of the Fund's net assets
<TABLE>
<CAPTION>
__________________________________________________________________________________
Percent Value
(of fund's net assets) (as of Sept. 30, 1995)
__________________________________________________________________________________
<S> <C> <C>
Allied Group 2.18% $7,532,500
A holding company, Allied provides
property-casualty insurance,
excess and surplus insurance,
investment services and data-processing.
Hormel Foods 2.13 7,385,000
This leading meat packer specializes in branded
meat products for the consumer market.
Ecolab 2.08 7,182,500
Supplies cleansing agents and related products to
nonresidential markets.
Collective Bancorp 1.95 6,727,500
The largest publicly traded thrift institution in
New Jersey, operating more than 75 full-service
banking offices through its Collective
Bank Subsidiary.
American President 1.86 6,435,000
A leading operator of container ships deployed in
the trans-Pacific and intra-Asia markets.
Boston Scientific 1.85 6,393,750
Develops, manufactures, and markets
medical devices.
Enhance Financial Services Group 1.83 6,336,550
Engages primarily in the reinsurance of financial
guaranties of municipal and asset-backed debt
obligations issued by monoline financial guaranty
insurers.
First American of Tennessee 1.81 6,253,125
A bank holding company headquartered in
Nashville, Tennessee.
Miller (Herman) Inc. 1.73 5,995,000
A leader in the design and development of
furniture and furniture systems.
Lancaster Colony 1.72 5,950,000
Manufactures and markets specialty foods,
automotive products, glassware and candles.
</TABLE>
<PAGE>
PAGE 9
Making the most of your fund
Average annual total return
(as of Sept. 30, 1995)
Class A
1 year 5 years 10 years
+11.74% +13.43% +10.56%
Total returns for Class A, Class B and Class Y for the period from
March 20, 1995 to Sept. 30, 1995 were 5.80%, 5.98% and 11.53%,
respectively. March 20, 1995 was the inception date for Class B
and Class Y. Total return for Class A is shown for comparative
purposes. The performance of Class B and Class Y will vary from
the performance of Class A based on differences in sales charges
and fees.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
figures for Class A and Class B reflect the effect of the maximum
5% sales charge. This was a period of widely fluctuating security
prices. Past performance is no guarantee of future results.
Build your assets systematically
One of the best ways to invest in the Fund is by dollar-cost
averaging -- a time-tested strategy that can make market
fluctuations work for you. To dollar-cost average, simply invest a
fixed amount of money regularly. You'll automatically buy more
shares when the Fund's share price is low, fewer shares when it is
high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low
(arrow in table pointing to September) and fewer shares when the
per share market price is high.<PAGE>
PAGE 10
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
Your Fund's long-term performance
Three ways to benefit from a mutual fund:
o your shares increase in value when the Fund's investments do
well
o you receive capital gains when the gains on investments sold
by the Fund exceed losses
o you receive income when the Fund's stock dividends, interest
and short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
Class A*
How your $10,000 has grown in IDS Progressive Fund
Average annual total return
(as of Sept. 30, 1995) S&P 500
1 year 5 years 10 years Stock Index
+11.74% +13.43% +10.56%
$27,305
Progressive Fund
$20,000 Lipper Capital
Appreciation Fund
$9,500
[graph plotting the relative performance of $9500
invested in each of the above]
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95
(The following three paragraphs appear in the margin next to the
graph:)
Assumes: -Holding period from 9/30/85 to 9/30/95. -Returns do not
reflect taxes payable on distributions. -Reinvestment of all
income and capital gain distributions for the Fund, with a value of
$15,528. Also see "Performance" in the Fund's current prospectus.
Standard & Poor's 500 Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P companies are generally larger than
those in which the Fund invests.
Lipper Capital Appreciation Fund Index, published by Lipper
Analytical Services, Inc., includes 30 funds that are generally
similar to this Fund, although some funds in the index may have
somewhat different investment policies or objectives.
* The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the <PAGE>
PAGE 11
period from March 20, 1995 to Sept. 30, 1995 were +5.80%, +5.98%
and +11.53%, respectively. March 20, 1995 was the inception date
for Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y
will vary from the performance of Class A based on differences in
sales charges and fees.
On the graph above you can see how the Fund's total return compared
to two widely cited performance indexes, the S&P 500 and the Lipper
Capital Appreciation Fund Index. In comparing Progressive Fund to
the two indexes, you should take into account the fact that the
Fund's performance reflects the maximum sales charge of 5%, while
such charges are not reflected in the performance of the indexes.
If you were actually to buy either individual stocks or growth
mutual funds, any sales charges that you pay would reduce your
total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
<PAGE>
PAGE 12
Independent auditors' report
The board of directors and shareholders
IDS Progressive Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS Progressive Fund, Inc. as of September 30, 1995, and the
related statement of operations for the year then ended and the
statements of changes in net assets for each of the years in the
two-year period ended September 30, 1995, and the financial
highlights for each of the years in the ten-year period ended
September 30, 1995. These financial statements and the financial
highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and
sold but not received or delivered, we request confirmations from
brokers, and where replies are not received, we carry out other
appropriate auditing procedures. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Progressive Fund, Inc. at September 30, 1995, and the results of
its operations for the year then ended and the changes in its net
assets for each of the years in the two-year period ended
September 30, 1995, and the financial highlights for the periods
stated in the first paragraph above, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
November 3, 1995<PAGE>
PAGE 13
Financial statements
Statement of assets and liabilities
IDS Progressive Fund, Inc.
Sept. 30, 1995
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $315,068,508) $352,155,670
Dividends and accrued interest receivable 738,322
Receivable for investment securities sold 157,794
______________________________________________________________________________________________________________
Total assets 353,051,786
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 2,656,874
Payable for investment securities purchased 4,383,627
Unrealized depreciation on foreign currency contracts
held, at value (Notes 1 and 5) 163,618
Accrued investment management services fee 11,919
Accrued distribution fee 297
Accrued service fee 3,276
Accrued transfer agency fee 3,029
Accrued administrative services fee 1,104
Other accrued expenses 57,476
_____________________________________________________________________________________________________________
Total liabilities 7,281,220
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $345,770,566
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value; $ 451,447
Additional paid-in capital 287,809,140
Undistributed net investment income 4,462,680
Accumulated net realized gain (Note 1) 16,121,424
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies (Note 5) 36,925,875
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $345,770,566
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $336,517,780
Class B $ 7,426,638
Class Y $ 1,826,148
Net asset value per share of outstanding capital stock: Class A shares 43,933,173 $ 7.66
Class B shares 973,319 $ 7.63
Class Y shares 238,188 $ 7.67
See accompanying notes to financial statements. <PAGE>
PAGE 14
Financial statements
Statement of operations
IDS Progressive Fund, Inc.
Year ended Sept. 30, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income:
Dividends (net of foreign taxes withheld of $60,294) $ 5,267,637
Interest 3,408,224
_____________________________________________________________________________________________________________
Total income 8,675,861
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 1,851,169
Distribution fee
Class A 99,784
Class B 13,312
Transfer agency fee 555,996
Incremental transfer agency fee - Class B 452
Service fee
Class A 295,036
Class B 3,106
Administrative services fee 100,807
Compensation of directors 5,405
Compensation of officers 2,649
Custodian fees 85,171
Postage 17,667
Registration fees 62,069
Reports to shareholders 23,000
Audit fees 20,940
Administrative 3,854
Other 3,976
_____________________________________________________________________________________________________________
Total expenses 3,144,393
Earnings credits on cash balances (Note 2) (17,268)
_____________________________________________________________________________________________________________
Total net expenses 3,127,125
_____________________________________________________________________________________________________________
Investment income -- net 5,548,736
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including loss of $23,639 from foreign currency transactions) (Note 3) 15,946,887
Net realized gain on expired option contracts written (Note 7) 151,395
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 16,098,282
Net change in unrealized appreciation or depreciation of investments and on
translation of assets and liabilities in foreign currencies 29,110,171
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 45,208,453
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $50,757,189
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 15
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Progressive Fund, Inc.
Year ended Sept. 30,
_____________________________________________________________________________________________________________
Operations and distributions 1995 1994
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 5,548,736 $ 4,374,018
Net realized gain on investments and foreign currency 16,098,282 13,141,048
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 29,110,171 2,581,623
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 50,757,189 20,096,689
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (5,046,235) (3,704,818)
Net realized gain
Class A (12,036,462) (21,846,006)
_____________________________________________________________________________________________________________
Total distributions (17,082,697) (25,550,824)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 51,297,752 53,896,886
Class B shares 7,175,301 --
Class Y shares 1,700,674 --
Reinvestment of distributions at net asset value
Class A shares 16,744,777 25,069,312
Payments for redemptions
Class A shares (41,167,059) (52,090,892)
Class B shares (Note 2) (127,637) --
Class Y shares (27,749) --
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 35,596,059 26,875,306
_____________________________________________________________________________________________________________
Total increase in net assets 69,270,551 21,421,171
Net assets at beginning of year 276,500,015 255,078,844
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$4,462,680 and $3,980,173) $345,770,566 $276,500,015
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 16
Notes to financial statements
IDS Progressive Fund, Inc.
___________________________________________________________________
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 offers Class A, Class B and Class Y shares. Class A shares
are sold with a front-end sales charge. Class B shares, which the
Fund began offering on March 20, 1995, may be subject to a
contingent deferred sales charge. Class B shares automatically
convert to Class A after eight years. Class Y shares, which the
Fund also began offering on March 20, 1995, 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:
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,
including illiquid securities, are valued at fair value according
to methods selected in good faith by the board of directors.
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 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 <PAGE>
PAGE 17
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 or interest rate
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 <PAGE>
PAGE 18
service. The Fund is subject to the credit risk that the other
party will not complete the obligations of the contract.
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.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, undistributed net investment
income has been decreased by $19,994 and accumulated net realized
gain has been increased by $23,639 resulting in a net
reclassification adjustment to decrease additional paid-in capital
by $3,645.
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
Under terms of a prior agreement that ended March 19, 1995, the
Fund paid AEFC a fee for managing its investments, recordkeeping
and other specified services. The fee was a percentage of the
Fund's average daily net assets consisting of a group asset charge
in reducing percentages from 0.46% to 0.32% annually on the
combined net assets of all non-money market Funds in the IDS MUTUAL
FUND GROUP and an individual annual asset charge of 0.23% of
average daily net assets. The fee was adjusted upward or downward <PAGE>
PAGE 19
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 Capital Appreciation 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 would have
been zero. The adjustment decreased the fee by $46,276 for the year
ended Sept. 30, 1995.
Also under the terms of a prior agreement, the Fund paid AEFC a
distribution fee at an annual rate of $6 per shareholder account
and a transfer agency fee at an annual rate of $15 per shareholder
account.
During the year ended Sept. 30, 1995, the Fund's custodian and
transfer agency fees were reduced by $17,268 as a result of
earnings credits from overnight cash balances.
Effective March 20, 1995, when the Fund began offering multiple
classes of shares, the Fund entered into agreements with 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
0.64% to 0.515% annually. The performance incentive adjustment
remains unchanged from the prior agreement.
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 0.06%
to 0.035% annually.
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.
<PAGE>
PAGE 20
Sales charges received by American Express Financial Advisors Inc.
for distributing Fund shares were $865,475 for Class A and $721 for
Class B for the year ended Sept. 30, 1995. The Fund also pays
custodian fees to American Express Trust Company, an affiliate of
AEFC.
The Fund has a retirement plan for its independent directors. Upon
retirement, directors receive monthly payments equal to one-half of
the retainer fee for as many months as they served as directors 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 the
directors serve on the board. The retirement plan expense amounted
to $2,586 for the year ended Sept. 30, 1995.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $156,256,104 and $155,968,494,
respectively, for the year ended Sept. 30, 1995. Realized gains and
losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with AEFC were
$11,600 for the year ended Sept. 30, 1995.
Income from securities lending amounted to $14,414 for the year
ended Sept. 30, 1995. 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.
___________________________________________________________________
4. Capital share transactions
Transactions in shares of capital stock for the period indicated
are as follows:
<TABLE><CAPTION>
__________________________________________________________________________________________________
Year ended Sept. 30, 1995 Year ended
9/30/94
Class A Class B* Class Y* Class A
__________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 7,377,210 990,962 241,975 7,826,363
Issued for reinvested 2,586,065 -- -- 3,694,811
distributions
Redeemed (5,882,611) (17,643) (3,787) (7,533,933)
__________________________________________________________________________________________________
Net increase 4,080,664 973,319 238,188 3,987,241
__________________________________________________________________________________________________
*Inception date was March 20,1995.
</TABLE>
___________________________________________________________________
5. Foreign currency contracts
At Sept. 30, 1995, the Fund had entered into two foreign currency
exchange contracts that obligate the Fund to deliver currency at a
specified future date. The unrealized depreciation of $163,618 on
these contracts is included in the accompanying financial
statements. The terms of the open contracts are as follows:
<PAGE>
PAGE 21
Exchange date Currency to be Currency to be Unrealized
delivered received depreciation
___________________________________________________________________
Dec. 5, 1995 5,700,000 3,483,256 $ 91,174
Dutch Guilder U.S. Dollar
Dec. 14, 1995 2,980,000 4,629,430 72,444
British Pound U.S. Dollar
________
$163,618
___________________________________________________________________
6. Illiquid securities
At Sept. 30, 1995, investments in securities included issues that
are illiquid. The Fund currently limits investments in illiquid
securities to 10% of the Fund's net assets, at market value, at the
time of purchase. The aggregate value of such securities at Sept.
30, 1995, was $3,826,200 which represents 1.1% of net assets.
Pursuant to guidelines adopted by the Fund's board of directors,
certain unregistered securities are determined to be liquid and are
not included within the 10% limitation specified above.
___________________________________________________________________
7. Option contracts written
The number of contracts and premium amounts associated
with option contracts written is as follows:
Year ended
Sept. 30, 1995
________________________
Calls
Contracts Premium
________________________________________________
Balance Sept. 30, 1994 -- $ --
Opened 1,250 151,395
Expired (1,250) (151,395)
________________________________________________
Balance Sept. 30, 1995 -- $ --
________________________________________________
___________________________________________________________________
8. Financial highlights
"Financial highlights" showing per share data and selected ratio
information is presented on pages 6 and 7 of the prospectus.
<PAGE>
PAGE 22
<TABLE><CAPTION>
Investments in securities
IDS Progressive Fund, Inc. (Percentages represent value of
Sept. 30, 1995 investments compared to net assets)
____________________________________________________________________________________________________________________________
Common stocks (81.9%)
____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Automotive & related (0.1%)
Tower Automotive 30,000 (b) $ 412,500
_____________________________________________________________________________________________________________________________
Banks and savings & loans (8.5%)
Collective Bancorp 260,000 6,727,500
F&M Bancorp 37,100 918,225
First Amer of Tennessee 145,000 6,253,125
Mercantile Bancorp 90,000 4,027,500
Southern Natl 217,500 5,709,375
Standard Federal Bancorp 150,000 5,850,000
____________
Total 29,485,725
_____________________________________________________________________________________________________________________________
Building materials (2.2%)
Cameron Ashley 250,000 (b) 2,375,000
Martin Marietta Materials 270,700 5,312,488
____________
Total 7,687,488
_____________________________________________________________________________________________________________________________
Chemicals (3.0%)
Ecolab 260,000 7,182,500
Ethyl 275,000 3,059,375
____________
Total 10,241,875
_____________________________________________________________________________________________________________________________
Computers & office equipment (4.4%)
Diebold 63,500 2,944,813
Exabyte 275,000 (b) 3,712,500
Solectron 125,000 (b) 4,937,500
VMARK 250,000 (b) 3,781,250
_____________
Total 15,376,063
_____________________________________________________________________________________________________________________________
Energy (1.2%)
Murphy Oil 100,000 4,000,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 23
Energy equipment & services (1.6%)
Production Operators 180,000 5,535,000
_____________________________________________________________________________________________________________________________
Financial services (1.4%)
Sun Communities 180,000 4,680,000
_____________________________________________________________________________________________________________________________
Food (3.7%)
Dean Foods 185,000 5,272,500
Hormel Foods 280,000 7,385,000
____________
Total 12,657,500
_____________________________________________________________________________________________________________________________
Furniture & appliances (4.6%)
Ethan Allen Interiors 250,000 (b) 5,375,000
Miller (Herman) 220,000 5,995,000
Natl Presto Inds 103,000 4,622,125
____________
Total 15,992,125
_____________________________________________________________________________________________________________________________
Health care (4.2%)
Beckman Instruments 125,000 3,781,250
Boston Scientific 150,000 (b) 6,393,750
Cordis 50,000 (b) 4,237,500
____________
Total 14,412,500
_____________________________________________________________________________________________________________________________
Health care services (0.5%)
United Wisconsin Services 72,600 1,733,325
_____________________________________________________________________________________________________________________________
Industrial equipment & services (4.0%)
Alamo Group 200,000 3,600,000
CLARCOR 205,500 4,829,250
Kaydon 185,000 5,457,500
____________
Total 13,886,750
_____________________________________________________________________________________________________________________________
Industrial transportation (3.2%)
Amer President 220,000 6,435,000
Kansas City Southern Inds 100,500 4,572,750
____________
Total 11,007,750
_____________________________________________________________________________________________________________________________
Insurance (6.8%)
Allied Group 230,000 7,532,500
Enhance Financial Services Group 309,100 6,336,550
Horace Mann Educators 180,000 4,950,000
PennCorp Financial Group 200,000 4,775,000
_____________
Total 23,594,050
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (2.9%)
Carmike Cinemas 240,000 (b) 5,280,000
Polaris Inds 35,000 1,544,375
ShoLodge 235,000 (b) 3,172,500
_____________
Total 9,996,875
_____________________________________________________________________________________________________________________________
Metals (1.5%)
Cleveland-Cliffs 125,000 5,140,625
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (4.3%)
Griffon 600,000 (b) 5,175,000
Lancaster Colony 175,000 5,950,000
Zero 222,400 3,614,000
____________
Total 14,739,000
_____________________________________________________________________________________________________________________________
Paper & packaging (4.0%)
Longview Fibre 240,000 3,660,000
Rayonier 150,000 5,868,750
Shorewood Packaging 250,000 (b) 4,343,750
____________
Total 13,872,500
_____________________________________________________________________________________________________________________________
Restaurants & lodging (1.0%)
Buffets 290,000 (b) 3,625,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 24
Retail (3.0%)
Meyer (Fred) 200,000 (b) 4,900,000
Rite Aid 200,000 5,600,000
____________
Total 10,500,000
_____________________________________________________________________________________________________________________________
Utilities-electric (1.0%)
Sierra Pacific Resources 150,000 3,431,250
_____________________________________________________________________________________________________________________________
Utilities-gas (2.6%)
Equitable Resources 170,000 5,015,000
New Jersey Resources 153,900 3,982,163
____________
Total 8,997,163
_____________________________________________________________________________________________________________________________
Utilities-telephone (1.5%)
Century Telephone 175,000 5,315,625
_____________________________________________________________________________________________________________________________
Foreign (10.7%)(c)
Boskalis 128,347 1,676,340
Charter Consolidated 116,949 1,594,716
Concordia Paper Holdings 110,000 (b) 1,388,750
Davis Service 390,000 1,528,020
DeBeers Consolidated Mines ADR 200,000 5,450,000
Empresas ICA 150,000 1,725,000
Kondor Wessels 47,500 1,525,795
Kwik-Fit Holdings 600,000 1,725,000
Leigh Interest 720,000 1,797,120
Panamerican Beverages 66,000 1,773,750
Polynorm 13,020 1,375,146
Powerscreen Intl 600,000 3,412,800
Ranger Oil 700,000 4,102,322
Renaissance Energy 100,000 (b) 2,251,162
South China Morning Post 3,000,000 1,773,000
Tempest Reinsurance 30,000 (b,d) 3,826,200
_____________
Total 36,925,121
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $246,860,096) $283,245,810
_____________________________________________________________________________________________________________________________
Bond (1.0%)
______________________________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
_____________________________________________________________________________________________________________________________
Foreign (c)
Escom
(South African Rand)
11% 2008 16,250,000 $ 3,434,275
_____________________________________________________________________________________________________________________________
Total bond
(Cost: $2,732,827) $ 3,434,275
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
Short-term securities (18.9%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (1.7%)
Federal Home Loan Mtge Corp
Disc Note
10-02-95 5.66% $3,200,000 $ 3,198,995
Federal Natl Mtge Assn
Disc Note
10-10-95 5.69 2,800,000 2,795,598
_____________
Total 5,994,593
_____________________________________________________________________________________________________________________________
Commercial paper (17.2%)
Albertson's
10-31-95 5.76 3,500,000 3,482,730
<PAGE>
PAGE 25
Anheuser-Busch
10-17-95 5.72 3,100,000 3,091,656
Bell Atlantic Network
Funding
10-20-95 5.75 4,300,000 4,286,335
Campbell Soup
10-11-95 5.73 3,000,000 2,994,766
Ciesco
10-30-95 5.76 3,700,000 3,682,332
Corporate Asset Funding
10-03-95 5.76 5,300,000 5,297,474
Fleet Funding
11-10-95 5.84 3,356,000 (e) 3,333,832
General Electric Capital
10-24-95 5.73 2,300,000 2,291,260
Goldman Sachs
10-19-95 5.76 3,500,000 3,489,415
Metlife Funding
11-03-95 5.80 3,500,000 3,480,927
PACCAR Financial
10-30-95 5.76 3,200,000 3,184,720
Penney (JC) Funding
10-27-95 5.73 3,500,000 3,485,038
PepsiCo
10-25-95 5.77 3,440,000 3,426,264
SAFECO Credit
10-25-95 5.75 3,100,000 3,087,686
Sandoz
10-26-95 5.73 3,000,000 2,987,650
Sara Lee
11-06-95 5.84 2,300,000 2,286,289
Siemens
10-04-95 5.75 2,600,000 2,598,348
USL Capital
10-12-95 5.77 3,000,000 2,994,270
_____________
Total 59,480,992
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $65,475,585) $ 65,475,585
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $315,068,508)(f) $352,155,670
_____________________________________________________________________________________________________________________________
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. For debt securities, principal amount is denominated
in the currency indicated.
(d) Identifies issues considered to illiquid (see Note 6 to the financial statements). Information concerning such
holdings at Sept. 30, 1995, is as follows:
Acquisition
Security date Cost
___________________________________________________________________________________
Tempest Reinsurance 09-13-93 $3,000,000
(e) 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 of directors.
(f) At Sept. 30, 1995, the cost of securities for federal income tax purposes was
$315,068,508 and the aggregate gross unrealized appreciation and depreciation
based on that cost was:
Unrealized appreciation $44,815,259
Unrealized depreciation (7,728,097)
____________________________________________________________________________________
Net unrealized appreciation $37,087,162
____________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 26
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 deposits (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) cornucopia
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
<PAGE>
PAGE 27
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
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) federal building
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 eagle head
<PAGE>
PAGE 28
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.
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 a combination of common stocks, fixed-income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(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 apple 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 stock 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
<PAGE>
PAGE 29
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) electrical cord
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) four 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
<PAGE>
PAGE 30
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
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 31
Federal income tax information
IDS Progressive Fund, Inc.
The Fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. The dividends listed below were reported
to you on a Form 1099-DIV, Dividends and Distributions, last
January. Shareholders should consult a tax advisor on how to report
distributions for state and local purposes.
IDS Progressive Fund, Inc.
Fiscal year ended Sept. 30, 1995
Class A
Income distribution
taxable as dividend income,
56.90% qualifying for deduction by corporations.
Payable date Per share
Dec. 30, 1994 $0.31771
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 30, 1994 $0.10566
Total distributions $0.42337
The distribution of $0.42337 per share, payable Dec. 30, 1994,
consisted of $0.12500 derived from net investment income, $0.19271
from net short-term capital gains (a total of $0.31771 taxable
as dividend income) and $0.10566 from net long-term capital gains.<PAGE>
PAGE 32
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 (TouchToneR 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 Progressive Fund, Inc.
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 33
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in a blue strip at the
top of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
