IDS Progressive Fund
1995 semiannual report
(Picture of: shooting star)
The goal of IDS Progressive Fund, Inc. is long-term growth of capital.
The fund invests primarily in undervalued common stocks.
Distributed by
American Express
Financial Advisors Inc.
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 "high-flier." 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.
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 20
Directors and officers 24
IDS mutual funds 25
<PAGE>
To our shareholders
William R. Pearce
President of the fund
(Picture of William R. Pearce)
Mike Garbisch
Portfolio manager
(Picture of Maike Garbisch)
From the president
As I indicated in the fund's annual report, new agreements between the
fund and American Express Financial Corporation 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. These charges compensate 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 advisor is available to answer your questions.
William R. Pearce
<PAGE>
From the portfolio manager
After a decline last fall, IDS Progressive Fund regained positive
momentum and concluded the first half of the fiscal year (October 1994
through March 1995) solidly in the plus column on a total return basis.
(Total return includes changes in net asset value plus the assumed
reinvestment of capital gain and dividend distributions to shareholders.
When a capital gain is paid, it reduces the net asset value by a like
amount, which accounts for the fact that the figure was essentially
unchanged from the beginning of the period.)
The past six months exceeded our expectations, as we had anticipated
that stocks would continue the up-and-down performance pattern they
followed during the first nine months of 1994. Although stocks had
some factors in their favor - low inflation and generally good
corporate profits - the likelihood of still-higher interest rates
appeared to be enough to keep the market off balance.
Market gets back on its feet
That was certainly the case during October and November, when the
market's unsteadiness turned into a tumble, setting the fund back
immediately. At that point, it seemed that those professional
investors who weren't worrying about higher interest rates were
instead fretting that the economic growth we had enjoyed for four
years would soon come to an end. In any event, they were wrong.
By December, long-term interest rates leveled off and, in the
weeks thereafter, actually declined. At the same time, the economy
continued to roll along, resulting in many companies reporting
good and even excellent profits. So much for conventional wisdom.
Strong finish
Before long, more money began flowing into the stock market,
providing fuel for a modest advance that, in February and March,
turned into an outright rally.
Interestingly, the market, even when it was charging ahead, kept
to its mercurial nature when it came to stock sectors. That is,
stocks of industrial companies might shoot up for a week or two,
then retreat, allowing another sector such as financial services
to gain ground. This rapid "rotation" made it impossible to adjust
the portfolio to stay on track during every turn, which has never
been our style to begin with.
Instead, we stuck with our value-oriented approach - investing in
good companies whose stock prices are at bargain levels - which
has served us well for the past few years. At times during the
recent six months, that meant lagging behind the market's pace,
but on other occasions it meant holding up better during slumps.
In the end, though, it meant relatively consistent progress.
At this writing (May), we have what we think is a well-balanced
portfolio. We're in no hurry to add stocks, nor sell them. Those
decisions, as always, will be made on a case-by-case basis with
investment value as the most important criterion. We think that
will allow us - and shareholders - to continue to benefit from
stocks' decades-long pattern of moving up and down as they
eventually make their way to higher ground.
Mike Garbisch
<PAGE>
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1995 $ 6.92
Sept. 30, 1994 $ 6.94
Decrease $ (.02)
Distributions
Oct. 1, 1994 - March 31, 1995
From income $ 0.32
From capital gains $ 0.10
Total distribution $ 0.42
Total return** +6.2%
Class B
March 20, 1995 - March 31, 1995
(All figures per share)
Net asset value (NAV)
March 31, 1995 $ 6.92
March 20, 1995* $ 6.87
Increase $ 0.05
Distributions
March 20, 1995 - March 31, 1995
From income $ -
From capital gains $ -
Total distribution $ -
Total return** -%***
Class Y
March 20, 1995 - March 31, 1995
(All figures per share)
Net asset value (NAV)
March 31, 1995 $ 6.91
March 20, 1995* $ 6.87
Increase $ 0.04
Distributions
March 20, 1995 - March 31, 1995
From income $ -
From capital gains $ -
Total distribution $ -
Total return** -%
*Commencement of operations.
**The prospectus discusses the effects of the sales
charge on the various classes.
***Not presented - as short period of operations may not be
indicative of annual results.
<PAGE>
PAGE
<TABLE>
<CAPTION>
IDS Progressive Fund, Inc.
Your fund's ten largest holdings
Percent Value
(of fund's net assets) (as of March 31, 1995)
Picture of: pie chart. The ten largest holdings listed here make up 19.57%
of the fund's net assets.
<S> <C> <C>
Hormel 2.33% $7,052,500
This leading meat packer specializes in branded
meat products for the consumer market.
Mercantile Bancorp 2.26 6,843,750
A St. Louis-based holding company with 249 banking
offices throughout Missouri, southern Illinois and
eastern Kansas.
Allied Group 2.14 6,497,500
A holding company, Allied provides property-casualty
insurance, excess and surplus insurance, investment
services and data-processing.
Ecolab 2.08 6,305,000
Ecolab supplies cleansing agents and related products
to nonresidential markets.
Northrop Grumman 2.01 6,109,375
A major manufacturer of military aircraft and
electronic defense systems and a provider of
technical and management services.
Meyer Fred 1.95 5,925,000
Fred Meyer is a regional discounter that operates
over 100 supercenter stores in the Pacific Northwest.
Multimedia Inc. 1.75 5,302,500
Multimedia Inc. is a medium-sized communications
company with operations in the newspaper,
broadcasting, cable television, and entertainment
businesses.
Martin Marietta Materials 1.72 5,210,975
Martin Marietta Materials is the nation's second
largest producer of construction aggregates.
Hasbro Inc, 1.67 5,062,500
Hasbro Inc. is the world's largest manufacturer
and marketer of toys.
Boston Scientific 1.66 5,045,958
Boston Scientific develops, manufactures, and
markets medical devices.
</TABLE>
<PAGE>
PAGE
Statement of assets and liabilities
IDS Progressive Fund, Inc.
March 31, 1995
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $273,909,556) $300,559,951
Cash in bank on demand deposit 2,701,959
Dividends and accrued interest receivable 876,867
Receivable for foreign currency contracts held, at value (Notes 1 and 5) 11,075,886
U.S. government securities held as collateral (Note 7) 1,315,306
______________________________________________________________________________________________________________
Total assets 316,529,969
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Payable for foreign currency contracts held, at value (Note 1 and 5) 11,726,579
Payable upon return of securities loaned (Note 7) 1,315,306
Accrued investment management and services fee 67,470
Accrued distribution and service fee 17,300
Accrued transfer agency fee 17,636
Accrued administrative services fee 5,852
Other accrued expenses 106,285
_____________________________________________________________________________________________________________
Total liabilities 13,256,428
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $303,273,541
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value; $ 438,551
Additional paid-in capital 278,529,986
Undistributed net investment income 1,881,524
Accumulated net realized loss (Notes 1 and 9) (3,576,222)
Unrealized appreciation (Note 5) 25,999,702
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $303,273,541
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $301,644,296
Class B $ 511,144
Class Y $ 1,118,101
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock: Class A shares 43,619,477 $ 6.92
Class B shares 73,923 $ 6.92
Class Y shares 161,675 $ 6.92
_____________________________________________________________________________________________________________
See accompanying notes to financial statements. <PAGE>
PAGE
Financial statements
Statement of operations
IDS Progressive Fund, Inc.
Six months ended March 31, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Interest $ 1,640,218
Dividends (net of foreign taxes withheld of $30,371) 2,673,620
_____________________________________________________________________________________________________________
Total income 4,313,838
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and service fee 899,950
Distribution fee 99,835
Transfer agency fee 266,446
Service fee 17,249
Administrative services fee 5,852
Compensation of directors 1,269
Compensation of officers 4,986
Custodian fees 65,096
Postage 7,178
Registration fees 17,012
Reports to shareholders 29,429
Audit fees 10,250
Administrative 12,324
Other 1,215
_____________________________________________________________________________________________________________
Total expenses 1,438,091
_____________________________________________________________________________________________________________
Investment income -- net 2,875,747
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including gain of $70,699 from foreign currency transactions) (Note 3) (3,656,439)
Net realized gain on closed or expired option contracts written (Note 8) 151,395
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency (3,505,044)
Net change in unrealized appreciation or depreciation 18,183,998
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 14,678,954
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $17,554,701
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Progressive Fund, Inc.
_____________________________________________________________________________________________________________
Operations and distributions March 31, 1995 Sept. 30,1994
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income -- net $ 2,875,747 $ 4,374,018
Net realized gain on investments and foreign currency (3,505,044) 13,141,048
Net change in unrealized appreciation or depreciation 18,183,998 2,581,623
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 17,554,701 20,096,689
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (4,974,396) (3,704,818)
Net realized gain
Class A (12,036,461) (21,846,006)
Excess distribution of realized gain
Class A (70,682) --
_____________________________________________________________________________________________________________
Total distributions (17,081,539) (25,550,824)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales or transfers from other funds
Class A shares (Note 2) 27,567,497 53,896,886
Class B shares 509,017 --
Class Y shares 1,111,205 --
Reinvestment of distributions at net asset value
Class A shares 16,743,619 25,069,312
Payments for redemptions or transfers to other funds
Class A shares (19,630,974) (52,090,892)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 26,300,364 26,875,306
_____________________________________________________________________________________________________________
Total increase in net assets 26,773,526 21,421,171
Net assets at beginning of period 276,500,015 255,078,844
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$1,881,524 and $3,980,173) $303,273,541 $276,500,015
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE
Notes to financial statements
IDS Progressive Fund, Inc.
(Unaudited as to March 31, 1995)
______________________________________________________________________________
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 and such 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) differ 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.
Options 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 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.
<PAGE>
PAGE
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 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
service. The fund is subject to the credit risk that the other party
will not complete the obligations of the contract.
<PAGE>
PAGE
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
Under terms of a prior agreement which ended March 19, 1995, the fund
paid American Express Financial Corporation 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 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 was 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 increased the fee by $25,667 for
the six months ended March 31, 1995.
Also under terms of a prior agreement, the fund paid American Express
Financial Advisors Inc. a distribution fee at an annual rate of $6 per
shareholder account and paid American Express Financial Corporation a
transfer agency fee at an annual rate of $15 per shareholder account.
The transfer agency fee was reduced by earnings on monies pending
shareholder redemptions.
<PAGE>
PAGE
Effective March 20, 1995, when the fund began offering multiple
classes of shares, the fund entered into agreements with American
Express Financial Corporation for managing its portfolio, providing
administration services and serving as transfer agent as follows:
Under its Investment Management Services Agreement, American Express
Financial Corporation 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
American Express Financial Corporation 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, American Express Financial
Corporation maintains shareholder accounts and records. The fund pays
American Express Financial Corporation 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 the
Distribution Agreement the fund pays a distribution fee at an annual
rate of 0.75% of the funds'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 B shares.
American Express Financial Corporation will assume and pay any
expenses (except taxes and brokerage commissions) that exceed the
most restrictive applicable state expense limitation.
Sales charges by American Express Financial Advisors Inc. for
distributing fund shares were $445,934 for Class A, for the six
months ended March 31, 1995. The fund also pays custodian fees to
American Express Trust Company, an affiliate of American Express
Financial Corporation.
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 $1,331 for the six months ended
March 31, 1995.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $78,581,143 and $75,285,357,
respectively, for the six months ended March 31, 1995. Realized gains
and losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with American Express
Financial Corporation were $22,520 for the six months ended
March 31, 1995.
<PAGE>
PAGE
4. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
<TABLE>
<CAPTION>
________________________________________________________________________________________
Six months ended March 31, 1995 Year ended
9/30/94
Class A Class B* Class Y* Class A
________________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 4,124,298 73,923 161,675 7,826,363
Issued for reinvested
distributions 2,585,890 -- -- 3,694,811
Redeemed (2,943,220) -- -- (7,533,933)
_______________________________________________________________________________________
Net increase 3,766,968 73,923 161,675 3,987,241
*Commencement of operations was March 20,1995.
</TABLE>
______________________________________________________________________________
5. Foreign currency contracts
At March 31, 1995, the fund had entered into three foreign currency
exchange contracts that obligate the fund to deliver currency at a
specified future date. The net unrealized depreciation of $650,693
on these contracts is included in the accompanying financial
statements. The terms of the open contracts are as follows:
<TABLE>
<CAPTION>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered March 31, 1995 received March 31, 1995
____________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
April 12, 1995 2,980,000 $ 4,825,872 4,750,120 $ 4,750,120
British Pound U.S. Dollar
May 2, 1995 8,000,000 5,717,553 5,717,553 5,233,812
Dutch Florin U.S. Dollar
May 2, 1995 5,700,000 1,183,154 1,183,154 1,091,954
Dutch Florin U.S. Dollar
___________ ___________
$11,726,579 $11,075,886
/TABLE
<PAGE>
PAGE
6. Illiquid securities
At March 31, 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
March 31, 1995, was $3,309,000 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. Lending of portfolio securities
At March 31, 1995, securities valued at $1,289,752 were on loan
to brokers. For collateral, the fund received $ 1,315,306 in U.S.
government securities Income from securities lending amounted to
$7,321 for the six months ended March 31, 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.
______________________________________________________________________________
8. Option contracts written
The number of contracts and premium amounts associated with option
contracts written is as follows:
<TABLE>
<CAPTION>
Six months ended
March 31, 1995
________________________________
Calls
Contracts Premium
________________________________________________________
<S> <C> <C>
Balance Sept. 31, 1994 -- $ --
Opened 1,250 151,395
Closed -- --
Expired (1,250) (151,395)
________________________________________________________
Balance March 31, 1995 -- $ --
</TABLE>
______________________________________________________________________________
9. Capital loss carryover
For federal income tax purposes, the fund has a capital loss carryover
of approximately $3,576,000 at March 31, 1995, that will expire in
2003 if not offset by subsequent capital gains.
<PAGE>
PAGE
9. Financial highlights
<TABLE>
<CAPTION>
The table below shows certain financial information for evaluating the fund's results.
Fiscal period ended Sept. 30,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990
Classes
A B Y
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $6.94 $6.87 $ 6.87 $7.11 $6.26 $5.77 $5.03 $7.16
beginning of period
Income from investment operations:
Net investment income .07 -- .01 .11 .10 .12 .18 .23
(loss)
Net gains (losses) on .33 .05 .04 .44 .88 .53 .81 (1.24)
securities (both realized
and unrealized)
Total from investment .40 .05 .05 .55 .98 .65 .99 (1.01)
operations
Less distributions:
Dividends from net (.12) -- -- (.11) (.09) (.16) (.20) (.34)
investment income
Distributions from (.30) -- -- (.61) (.04) -- (.05) (.78)
realized gains
Total distributions (.42) -- -- (.72) (.13) (.16) (.25) (1.12)
Net asset value, $6.92 $6.92 $6.92 $6.94 $7.11 $6.26 $5.77 $5.03
end of period
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
Classes
A B Y
Net assets, end of period $302 $-- $1 $277 $255 $174 $132 $127
(in millions)
Ratio of expenses to 1.03%*** 1.63%*** .95%*** .99% 1.09% 1.06% .98% .79%
average daily net assets
Ratio of net income (loss) 2.05*** 1.81%*** 4.93%*** 1.65% 1.64% 2.07% 3.11% 3.38%
to average daily net assets
Portfolio turnover rate 31% 31% 31% 77% 75% 87% 125% 86%
(excluding short-term
securities)
Total return+ 6.2%++ 0.7% 0.7% 7.9% 15.9% 11.4% 20.8% (16.3%)
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended March 31, 1995 for Class A and commencement of operations
March 20, 1995 Class B and Y shares (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended March 31, 1995, the annualized total
return is 12.4%.
</TABLE>
PAGE
Investments in securities
<TABLE>
<CAPTION>
IDS Progressive Fund, Inc. (Percentages represent value of
March 31, 1995 (Unaudited) investments compared to net assets)
Common stocks (83.0%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (3.3%)
Northrop 125,000 $ 6,109,375
Thiokol 140,000 3,972,500
____________
Total 10,081,875
_____________________________________________________________________________________________________________________________
Banks and savings & loans (7.7%)
Brooklyn Bancorp 95,000 (b) 3,063,750
Collective Bancorp 195,000 3,534,375
F&M Bancorp 37,100 760,550
First Amer of Tennessee 145,000 4,857,500
Mercantile Bancorp 187,500 6,843,750
Southern Natl 217,500 4,322,813
____________
Total 23,382,738
_____________________________________________________________________________________________________________________________
Building materials (2.8%)
Cameron Ashley 200,000 (b) 3,200,000
Martin Marietta Materials 270,700 5,210,975
____________
Total 8,410,975
_____________________________________________________________________________________________________________________________
Chemicals (3.0%)
Ecolab 260,000 6,305,000
Ethyl 275,000 2,818,750
____________
Total 9,123,750
_____________________________________________________________________________________________________________________________
Computers & office equipment (1.2%)
Solectron 125,000 (b) 3,656,250
_____________________________________________________________________________________________________________________________
Electronics (1.1%)
Zilog 92,000 (b) 3,289,000
_____________________________________________________________________________________________________________________________
Energy (1.4%)
Murphy Oil 100,000 4,312,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
Energy equipment & services (1.6%)
Production Operators 180,000 4,815,000
_____________________________________________________________________________________________________________________________
Financial services (2.4%)
AMRESCO 235,000 1,674,375
Inter-Regional Financial Group 65,000 1,616,875
Sun Communities 180,000 4,050,000
____________
Total 7,341,250
_____________________________________________________________________________________________________________________________
Food (3.8%)
Dean Foods 160,000 4,520,000
Hormel Foods 260,000 7,052,500
____________
Total 11,572,500
_____________________________________________________________________________________________________________________________
Furniture & appliances (2.8%)
Ethan Allen Interiors 200,000 (b) 4,175,000
Natl Presto Inds 103,000 4,184,375
____________
8,359,375
_____________________________________________________________________________________________________________________________
Health care (3.9%)
Beckman Instruments 125,000 3,703,125
Boston Scientific 204,912 (b) 5,045,958
____________
Total 8,749,083
_____________________________________________________________________________________________________________________________
Health care services (1.1%)
Community Health Systems 100,000 (b) 3,150,000
United Wisconsin Services 83,000 3,268,125
____________
Total 6,418,125
_____________________________________________________________________________________________________________________________
Household products (1.1%)
Scotts Cl A 180,000 (b) 3,296,250
_____________________________________________________________________________________________________________________________
Industrial equipment & services (3.8%)
CLARCOR 232,200 4,905,225
Giddings & Lewis 100,000 1,700,000
Kaydon 185,000 4,879,375
____________
Total 11,484,600
_____________________________________________________________________________________________________________________________
Industrial transportation (2.9%)
Amer President 220,000 4,812,500
Kansas City Southern Inds 100,500 4,082,813
____________
Total 8,895,313
<PAGE>
PAGE
Insurance (5.3%)
Allied Group 230,000 6,497,500
Enhance Financial Services Group 170,000 2,890,000
PennCorp Financial Group 200,000 3,525,000
Tempest Reinsurance 30,000 (b,e) 3,309,000
____________
Total 16,221,500
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (1.7%)
Hasbro 150,000 5,062,500
_____________________________________________________________________________________________________________________________
Media (1.7%)
Multimedia 140,000 (b) 5,302,500
_____________________________________________________________________________________________________________________________
Metals (1.6%)
Cleveland-Cliffs 125,000 4,812,500
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (3.7%)
Griffon 375,000 (b) 3,187,500
Lancaster Colony 135,000 4,792,500
Zero 222,400 3,141,400
____________
Total 11,121,400
_____________________________________________________________________________________________________________________________
Paper & packaging (2.9%)
Longview Fibre 240,000 4,080,000
Rayonier 150,000 4,668,750
____________
Total 8,748,750
_____________________________________________________________________________________________________________________________
Restaurants & lodging (1.6%)
Ryan's Family Steak House 700,000 (b) 4,725,000
_____________________________________________________________________________________________________________________________
Retail (5.6%)
Freds 285,000 2,778,750
MacFrugals Bargains Closeouts 234,000 (b) 3,363,750
Meyer (Fred) 200,000 (b) 5,925,000
Rite Aid 200,000 4,900,000
____________
Total 16,967,500
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Utilities-electric (0.8%)
Sierra Pacific Resources 120,400 2,377,900
_____________________________________________________________________________________________________________________________
Utilities-gas (2.7%)
Equitable Resources 170,000 4,738,750
New Jersey Resources 153,900 3,424,275
____________
Total 8,163,025
_____________________________________________________________________________________________________________________________
Foreign (11.5%)(c)
Boskalis 90,200 1,205,884
Charter Consolidated 115,000 1,469,355
Concordia Paper Holdings 110,000 (b) 1,485,000
Davis Service 390,000 1,338,870
DeBeers Consolidated Mines ADR 200,000 4,975,000
Getronics 51,914 2,072,095
Kondor Wessels 47,500 1,356,410
Kwik-Fit Holdings 600,000 1,389,000
Leigh Interest 360,000 798,480
Orthofix Intl 265,000 (b) 4,703,750
Panamerican Beverages 66,000 1,724,250
Polynorm 12,500 (b) 1,298,025
Ranger Oil 700,000 4,721,220
Renaissance Energy 100,000 (b) 2,104,320
South China Morning Post 2,700,000 1,509,300
Unibail 15,000 1,449,794
Woolworth's LTD 613,819 (d) 1,291,475
____________
Total 34,892,228
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $225,876,078) $251,583,387
_____________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Bonds (2.3%)
_____________________________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Domestic (1.2%)
SBH/Amgen ELKS
3.185% Cv $6,500,000 (f) $ 3,782,188
Foreign (1.1%)(c)
Escom
(South African Rand)
11% 2008 16,250,000 3,180,775
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $5,917,827) $ 6,962,963
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Options purchased (0.3%)
_____________________________________________________________________________________________________________________________
Issuer Number Exercise Expiration Value(a)
of contracts price date
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
S&P 500 1,300 $480 Sept. 1995 $ 1,007,500
_____________________________________________________________________________________________________________________________
Total options purchased
(Cost: $1,109,550) $ 1,007,500
_____________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Short-term securities (13.5%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.1%)
Federal Home Loan Mtge Corp
Disc Note
04-13-95 5.94% $ 500,000 $ 499,015
_____________________________________________________________________________________________________________________________
Commercial paper (12.4%)
AIG Funding
04-10-95 6.01 2,300,000 2,296,562
Aon
04-03-95 6.00 2,100,000 2,099,303
04-24-95 6.03 3,500,000 3,486,650
Ciesco L.P.
04-05-95 6.00 2,900,000 2,898,080
04-13-95 6.00 1,400,000 1,397,214
Corporate Asset Funding
04-17-95 6.01 3,300,000 (g) 3,291,244
Emerson Electric
04-11-95 5.98 3,300,000 3,294,546
Gateway Fuel
04-07-95 6.01 500,000 499,503
04-25-95 6.01 3,600,000 3,585,648
Goldman Sachs Group
04-05-95 6.01 1,800,000 1,798,804
Morgan Stanley Group
04-04-95 5.99 3,900,000 3,898,063
Motorola
04-21-95 6.00 2,400,000 2,392,053
Pfizer
04-03-95 5.97 2,800,000 (g) 2,799,074
Siemens
04-20-95 6.01 3,600,000 3,588,657
____________
Total 37,325,401
_____________________________________________________________________________________________________________________________
Letter of credit (1.0%)
First Natl Bank Chicago-
Commed Fuel
05-05-95 6.10 3,200,000 3,181,685
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $41,006,101) $ 41,006,101
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $273,909,556)(h) $300,559,951
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
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) Security is partially or fully on loan. See Note 7 to the financial statements.
(e) Identifies issues considered to illiquid (see Note 6 to the financial statements). Information concerning such
holdings at March 31, 1995, is as follows:
Acquistion
Security date Cost
___________________________________________________________________________________
Tempest Reinsurance 09-13-93 $3,000,000
(f) ELKS are equity-linked securities that are structured as an interest bearing debt security
of a brokerage firm and linked to the common stock of another company. The terms of ELKS differ
from those of ordinary debt securities in that the principal amount received at maturity in not
fixed, but is based on the price on the common stock the ELK is linked to. The principal amount
discosed equals the current estimated future value of the amount to be received upon maturity.
(g) 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.
(h) At March 31, 1995, the cost of securities for federal income tax purposes was approximately
$273,910,000 and the approximate aggregate gross unrealized appreciation and depreciation
based on that cost was:
Unrealized appreciation $37,558,000
Unrealized depreciation (10,908,000)
_________________________________________________________________________________________________________________________
Net unrealized depreciation $26,650,000
_________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
Directors and officers
Directors and officers of the fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent directors
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.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
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 directors who are officers and/or employees of American
Express Financial Corporation.
William H. Dudley
Executive vice president, American Express Financial Corporation.
David R. Hubers
President and chief executive officer, American Express Financial
Corporation.
John R. Thomas
Senior vice president, American Express Financial Corporation.
_____________________________________________________________________
Officers who also are officers and or/employees of American Express
Financial Corporation
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.
_____________________________________________________________________
Other officer
Leslie L. Ogg
Vice president, general counsel and secretary of all funds in the IDS MUTUAL
FUND GROUP .
<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) cornucopia<PAGE>
PAGE
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
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<PAGE>
PAGE
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
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
<PAGE>
PAGE
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 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) 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<PAGE>
PAGE
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 Equity 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
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
<PAGE>
PAGE
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 Progressive Fund
IDS Tower 10
Minneapolis, MN 55440-0010
