PAGE
IDS Selective Fund
1995 semiannual report
(icon of) skyline
The goals of IDS Selective Fund, Inc. are current
income and the preservation of capital by investing in
investment grade bonds.
Distributed by American Express Financial Advisors Inc.
(icon of) skyline
A quest for Quality
Not all bonds are created equal. A bond's quality
depends on the ability of its issuer to make the
interest and principal payments owed to the
bondholders. The quality is determined by independent
rating agencies, which assign a credit rating (in the
form of a letter grade) to each bond.
Since its establishment in 1945, Selective Fund has
concentrated its investments in the four highest
investment grades. Along the way, investors have
enjoyed a steady stream of interest income with minimal
risk to their principal.
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 28
IDS mutual funds 29
<PAGE>
PAGE
To our shareholders
(picture of)
William R. Pearce
President of the fund
(picture of)
Ray Goodner
Portfolio manager
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 American Express financial advisor is
available to answer your questions.
William R. Pearce
From the portfolio manager
The bond market staged a robust rally during the first
half of IDS Selective Fund's fiscal year (December 1994
through May 1995). Thanks largely to a long maturity
level in the portfolio, the fund took advantage of the
positive environment, giving Class A shareholders a
double-digit gain for the six-month period. (Please
note that the fund's net asset value was reduced last
December by a capital gain distribution to
shareholders, which is included in the total return for
the period.)
The rally in the bond market corresponded almost
exactly with the beginning of the fiscal year. The
decline in long-term interest rates, always bonds' best
friend, began in mid-November 1994. Because falling
rates boost bond values, the market immediately started
moving higher and maintained a steady advance through
the spring. This marked a sharp reversal from the
rising-rate trend that dominated nearly all of 1994 and
drove down bond prices so dramatically.
Favorable factors
What had bothered the bond market earlier - a fear that
an over-heated economy would soon lead to a rise in the
inflation rate - was put aside during the period as
inflation reports remained unthreatening. In that
light, longer-term bonds looked increasingly attractive
to investors and as they rushed back into the market,
yields continued to decline.
Our strategy during the six months centered on
extending the average maturity of the bonds in the
portfolio to increase the fund's ability to benefit
from the interest-rate drop. (The longer the maturity,
the greater a security's price-sensitivity to a change
in rates. ) In addition, we reduced cash reserves,
preferring to have more money at work in higher-
yielding securities. Beyond that, we maintained an
exposure to dollar-denominated foreign bonds,
especially in Asia, which also proved to be productive.
Korean bonds, in particular, provided a boost when the
bonds we held were upgraded in quality.
Slower economy may extend rally
It appears clear at this writing that U.S. economic
growth has slowed down from its surge in 1994, though
not to the point of recession. This trend has its roots
in a slowdown in consumer spending, which, if it
continues, should ultimately help keep inflation at bay
in the months ahead. That, in turn, would serve to
restrain a potential rise in long-term interest rates
and probably even lead to further decline. Congress'
determination to reduce the federal deficit also
fosters a positive environment for bonds.
As we enter the second half of the year, there is
increasing sentiment that the Federal Reserve will soon
reverse course and lower short-term interest rates.
This seems premature, given the Fed's well-demonstrated
desire to combat inflation. Therefore, should the Fed
not lower rates this summer, such a signal would likely
extend the favorable environment for bond performance.
Ray Goodner
<PAGE>
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
__________________________
May 31, 1995 $ 9.24
__________________________
Nov. 30, 1994 $ 8.57
__________________________
Increase $ 0.67
__________________________
Distributions
Dec. 1, 1994-May 31, 1995
__________________________
From income $ 0.29
__________________________
From capital gains $ 0.12
__________________________
Total distributions $ 0.41
__________________________
Total return** +12.9%***
__________________________
Class B
March 20, 1995-May 31, 1995
__________________________
(All figures per share)
Net asset value (NAV)
__________________________
May 31, 1995 $ 9.24
__________________________
March 20, 1995* $ 8.79
__________________________
Increase $ 0.45
__________________________
Distributions
March 20, 1995*-May 31, 1995
__________________________
From income $ 0.14
__________________________
From capital gains $ --
__________________________
Total distributions $ 0.14
__________________________
Total return** + 6.7%***
__________________________
Class Y
March 20, 1995-May 31, 1995
__________________________
(All figures per share)
Net asset value (NAV)
__________________________
May 31, 1995 $ 9.24
__________________________
March 20, 1995* $ 8.79
__________________________
Increase $ 0.45
__________________________
Distributions
March 20, 1995*-May 31, 1995
__________________________
From income $ 0.15
__________________________
From capital gains $ --
__________________________
Total distributions $ 0.15
__________________________
Total return** +6.8%***
__________________________
*Commencement of operations.
**The prospectus discusses
the effects of the sales charge
on the various classes.
***The total return is a hypothetical
investment in the fund with all
distributions reinvested.
<PAGE>
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<TABLE>
<CAPTION>
IDS Selective Fund, Inc.
Your fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 12.13% of the fund's net assets
Percent Value
(of fund's net assets) (as of May 31, 1994)
<S> <C> <C>
Japan Finance 1.82% $28,259,810
9.25% 1998
Southern California Edison 1.49 23,036,370
8.875% 1st Mortgage 2023
Tokyo Electric Power Euro 1.34 20,705,144
6.125% 2003
Republic of Italy 1.27 19,709,360
6.875% 2023
Province of Quebec 1.25 19,404,548
11% 2015
Pacific Bell 1.02 15,862,500
8.50% 2031
GTE South 1.00 15,541,737
9.375% 1st Mortgage 2030
General Electric Capital .99 15,364,650
8.65% Reset Note 1996
Texas Utilities Electric .98 15,164,370
9.75% 1st Mortgage 2021
PDV America .97 14,964,015
7.875% 2003
Excludes U.S. Treasury and government agencies holdings that total 43% of the
fund's net assets.
</TABLE>
<PAGE>
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<TABLE>
<CAPTION>
Statement of assets and liabilities
IDS Selective Fund, Inc.
May 31, 1995
______________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,443,460,490) $1,526,173,950
Dividends and accrued interest receivable 25,346,648
Receivable for investment securities sold 11,714,251
Receivable for foreign currency contracts held, at value (Notes 1 and 7) 10,214,193
U.S. government securities held as collateral (Note 5) 90,822,739
_____________________________________________________________________________________________________________
Total assets 1,664,271,781
_____________________________________________________________________________________________________________
Liabilities
____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 1,930,289
Dividends payable to shareholders 1,644,027
Payable for foreign currency contracts held, at value (Notes 1 and 7) 10,107,922
Payable upon return of securities loaned (Note 5) 100,280,739
Accrued investment management services fee 150,860
Accrued distribution fees 4,634
Accrued service fee 41,417
Accrued transfer agency fee 29,668
Accrued administrative services fee 14,238
Other accrued expenses 254,166
_____________________________________________________________________________________________________________
Total liabilities 114,457,960
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,549,813,821
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value; $ 1,677,164
Additional paid-in capital 1,461,376,224
Undistributed net investment income 308,087
Accumulated net realized gain (Note 1) 3,632,615
Unrealized appreciation (Note 7) 82,819,731
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $1,549,813,821
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $1,415,013,755
Class B $ 17,282,141
Class Y $ 117,517,925
Net asset value per share of outstanding capital stock: Class A shares 153,128,396 $ 9.24
Class B shares 1,870,007 $ 9.24
Class Y shares 12,717,810 $ 9.24
See accompanying notes to financial statements. <PAGE>
PAGE
Financial statements
Statement of operations
IDS Selective Fund, Inc.
Six months ended May 31, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income: (Unaudited)
Interest $ 54,039,685
Dividends 143,850
_____________________________________________________________________________________________________________
Total income 54,183,535
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 3,710,107
Distribution fee
Class A 191,949
Class B 12,119
Transfer agency fee 828,106
Incremental transfer agency fee - Class B 183
Service fee
Class A 407,362
Class B 2,939
Administrative services fee 143,040
Compensation of directors 15,559
Compensation of officers 9,070
Custodian fees 80,721
Postage 59,016
Registration fees 48,166
Reports to shareholders 17,592
Audit fees 16,000
Administrative 9,380
Other 12,115
_____________________________________________________________________________________________________________
Total expenses 5,563,424
_____________________________________________________________________________________________________________
Investment income -- net 48,620,111
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including gain of $3,842 from foreign currency transactions) (Note 3) 2,009,639
Net realized loss on closed option contracts written (Note 8) (34,345)
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 1,975,294
Net change in unrealized appreciation or depreciation 128,437,214
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 130,412,508
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $179,032,619
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
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<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Selective Fund, Inc.
_____________________________________________________________________________________________________________
Operations and distributions May 31, 1995 Nov. 30, 1994
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income -- net $ 48,620,111 $ 102,344,658
Net realized gain on investments and foreign currency 1,975,294 21,139,491
Net change in unrealized appreciation or depreciation 128,437,214 (202,860,707)
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations 179,032,619 (79,376,558)
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (46,006,556) (102,415,375)
Class B (85,256) --
Class Y (1,841,425) --
Excess distribution of net investment income
Class A -- (378,787)
Net realized gain
Class A (20,000,191) (26,487,582)
Excess distribution of realized gain (Note 1)
Class A (3,842) (42,963)
_____________________________________________________________________________________________________________
Total distributions (67,937,270) (129,324,707)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 103,886,374 196,126,624
Class B shares 17,063,211 --
Class Y shares 116,020,696 --
Reinvestment of distributions at net asset value
Class A shares 49,951,759 99,112,296
Class B shares 78,941 --
Class Y shares 1,451,348 --
Payments for redemptions
Class A shares (245,838,241) (421,007,405)
Class B shares (Note 2) (455,270) --
Class Y shares (5,561,731) --
_____________________________________________________________________________________________________________
Increase (decrease) in net assets from capital share transactions 36,597,087 (125,768,485)
_____________________________________________________________________________________________________________
Total increase (decrease) in net assets 147,692,436 (334,469,750)
Net assets at beginning of period 1,402,121,385 1,736,591,135
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$308,087 and $(378,787)) $1,549,813,821 $1,402,121,385
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
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Notes to financial statements
IDS Selective Fund, Inc.
(Unaudited as to May 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. 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) 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.
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 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 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.
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
Dividends from net investment income, declared daily and payable monthly,
are reinvested in additional shares of the fund at net asset value or
payable in cash. Capital gains, when available, are distributed along with
the last income dividend of the calendar year.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Dividend income is recognized on the ex-dividend date.
For U.S. dollar denominated bonds, interest income includes level-yield
amortization of premium and discount. For foreign bonds, except for issue
discount, the fund does not amortize premium and discount.
__________________________________________________________________________
2. Expenses and sales charges
Under terms of a prior agreement that 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 0.13% of average daily net assets.
Also under the terms of a prior agreement, the fund paid American Express
Financial Corporation a distribution fee at an annual rate of $6 per
shareholder account and a transfer agency fee at an annual rate of $15.50
per shareholder account. The transfer agency fee was reduced by earnings
on monies pending shareholder redemptions.
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 it's portfolio, providing administrative 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 0.52% to 0.395% annually. 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 0.05% to 0.025% 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 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.
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 $1,660,478 for Class A and $90 for Class B for the six
months ended May 31, 1995.
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 $4,262 for the six months
ended May 31, 1995.
__________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $429,888,828 and $259,052,248,
respectively, for the six months ended May 31, 1995. Realized gains and
losses are determined on an identified cost basis.
__________________________________________________________________________
<TABLE>
<CAPTION>
4. Share transactions
Transactions in shares of capital stock during each period were as
follows:
Six months ended May 31, 1995 Year ended
11/30/94
Class A Class B* Class Y* Class A
________________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 11,908,902 1,912,548 13,178,266 21,519,839
Issued for reinvested
distributions 5,762,368 8,702 161,407 10,813,989
Redeemed (28,140,930) (51,243) (621,863) (46,537,712)
_________________________________________________________________________________________
Net increase (decrease) (10,469,660) 1,870,007 12,717,810 (14,203,884)
_________________________________________________________________________________________
*Commencement of operations was March 20, 1995.
</TABLE>
_________________________________________________________________________
5. Lending of portfolio securities
At May 31, 1995, securities valued at $89,237,922 were on loan to brokers. For
collateral, the fund received $9,458,000 in cash and U.S. government
securities valued at $90,822,739. Income from securities lending amounted to
$87,342 for the six months ended May 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.
<PAGE>
PAGE
6. Illiquid Securities
At May 31, 1995, investments in securities included issues that are illiquid.
The fund currently limits investments in illiquid securities to 10% of the net
assets, at market value, at the time of purchase. The aggregate value of such
securities at May 31, 1995 was $8,055,483, representing 0.5% of the 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. Foreign currency contracts
At May 31, 1995, the fund had entered into one foreign currency exchange
contract that obligates the fund to deliver currency at a specified future
date. The net unrealized appreciation of $106,271 on this contract 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 May 31, 1995 received May 31, 1995
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
June 1, 1995 6,371,208 $10,107,922 10,214,193 $10,214,193
British Pound U.S. Dollar
______________________________________________________________________________
8. Option contracts written
The number of contracts and premium amounts associated with
covered call option contracts written is as follows:
Six months ended May 31, 1995
_____________________________
Contracts Premium
___________________________________________
Balance Nov. 30, 1994 -- $ --
Opened 500 414,470
Closed (500) (414,470)
___________________________________________
Balance May 31, 1995 -- $ --
___________________________________________________________
<PAGE>
9. Financial highlights
PAGE
</TABLE>
<TABLE>
<CAPTION>
IDS Selective Fund, Inc.
The table below shows certain important financial information
for evaluating the fund's results.
Fiscal period ended Nov. 31,
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, $8.57 $8.79 $8.79 $9.77 $9.20 $8.93 $8.41 $8.69
beginning of period
Income from investment operations:
Net investment income .29 .14 .15 .60 .63 .66 .69 .70
Net gains (losses) .79 .45 .45 (1.05) .69 .27 .52 (.30)
(both realized
and unrealized)
Total from investment 1.08 .59 .60 (.45) 1.32 .93 1.21 .40
operations
Less distributions:
Dividends from net (.29) (.14) (.15) (.60) (.64) (.66) (.69) (.68)
investment income
Distributions from (.12) -- -- (.15) (.11) -- -- --
realized gains
Total distributions (.41) (.14) (.15) (.75) (.75) (.66) (.69) (.68)
Net asset value, $9.24 $9.24 $9.24 $8.57 $9.77 $9.20 $8.93 $8.41
end of period
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
Classes
A B Y
Net assets, end of period $1,415 $17 $118 $1,402 $1,737 $1,541 $1,403 $1,196
(in millions)
Ratio of expenses to .78%+ 1.67%+ .71%+ .72% .72% .74% .77% .76%
average daily net assets
Ratio of net income 6.80%+ 6.01%+ 7.84%+ 6.53% 6.57% 7.32% 7.94% 8.58%
to average daily net assets
Portfolio turnover rate 21% 21% 21% 30% 30% 62% 59% 54%
(excluding short-term
securities)
Total return++ 12.9%+++ 6.7% 6.8% (4.7%) 14.8% 10.8% 15.0% 4.8%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended May 31, 1995 for Class A and commencement of operations
March 20, 1995 for Class B and Class Y (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
+++For the fiscal period ended May 31, 1995 the annualized total return is 25.8%.
</TABLE>
<PAGE>
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<TABLE>
<CAPTION>
Investments in securities
IDS Selective Fund, Inc. (Percentages represent value of
May 31, 1995 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (92.1%)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
U.S. government obligations (30.0%)
U.S. Treasury 6.875% 1999 $60,000,000 $ 61,814,400
7.25 1996 30,000,000 30,593,700
7.50 2001 37,900,000 (b) 40,590,521
7.50 2016 65,450,000 70,812,319
8.00 2021 35,000,000 (b) 40,168,800
8.625 1997 50,745,000 53,590,272
Resolution Funding Corp
Zero Coupon 7.61 2017 79,000,000 (c) 16,994,480
Zero Coupon 7.89 2016 70,900,000 (b,c) 16,350,851
Zero Coupon 7.98 2016 47,000,000 (c) 10,846,190
Zero Coupon 8.11 2016 35,073,000 (c) 7,814,615
Zero Coupon 8.12 2004 7,899,000 (c) 4,410,960
Zero Coupon 8.18 2005 13,000,000 (c) 6,602,310
Zero Coupon 8.19 2014 48,000,000 (c) 13,162,080
Zero Coupon 8.20 2005 38,048,000 (c) 20,021,999
Zero Coupon 8.27 2014 10,000,000 (c) 2,638,700
Zero Coupon 8.35 2006 48,000,000 (c) 23,495,040
Zero Coupon 8.94 2006 25,000,000 (c) 12,439,750
Zero Coupon 8.95 2006 68,000,000 (c) 32,208,880
_____________
Total 464,555,867
_____________________________________________________________________________________________________________________________
Mortgage-backed securities (13.0%)
Federal Home Loan Mtge Corp 7.00 1995-25 9,875,577 9,746,009
7.50 2024 19,913,540 20,044,173
8.00 1995-17 13,839 14,085
8.50 1995-17 591,410 609,335
8.50 1995-19 366,412 377,518
8.50 1995-22 12,426,746 12,873,363
8.50 1995-25 14,705,601 15,050,300
9.00 1995-20 4,902,595 5,091,051
9.00 2021 2,884,387 3,013,290
Collateralized Mtge Obligation 8.50 2019 12,000,000 12,253,080
Federal Housing Admin 7.43 2024 9,399,789 9,311,666
Federal Natl Mtge Assn 6.50 1995-23 14,002,585 13,512,509
Collateralized Mtge Obligation 8.00 2021 12,702,370 12,944,605
8.50 2019 7,976,355 8,301,471
Principal Only 9.50 2018 1,896,946 (e) 1,505,701
Principal Only 9.89 2020 2,629,671 (e) 2,085,539
Trust Series Z 6.00 2024 18,320,607 (d) 13,620,821
See accompanying notes to investments in securities.
<PAGE>
PAGE
Govt Natl Mtge Assn 8.00 1995-24 32,116,479 32,979,770
8.00 1995-22 2,221,942 2,281,668
8.00 1995-23 4,500,082 4,621,044
9.00 1995-24 9,409,027 9,885,406
9.00 1995-25 4,290,916 4,508,165
Collateralized Mtge Obligation Trust 7.75 2012 3,106,803 3,164,310
Prudential Bache
Collateralized Mtge Obligation 7.965 2019 4,233,459 4,327,061
WestAm
Collateralized Mtge Obligation 8.95 2018 123,406 127,412
______________
Total 202,249,352
_____________________________________________________________________________________________________________________________
Financial (10.4%)
Banks and savings & loans (3.2%)
BankAmerica
Sub Nts 7.50 2002 8,810,000 9,189,623
Boatmen's Bancshares
Sub Nts 9.25 2001 8,950,000 10,108,667
First Chicago
Sr Nts 9.00 1999 7,900,000 8,548,511
NCNB
Sub Nts 9.125 2001 10,000,000 11,168,500
Standard Credit Card 8.63 2002 10,000,000 10,756,250
______________
Total 49,771,551
_____________________________________________________________________________________________________________________________
Financial services (6.0%)
Aristar
Sr Deb 8.875 1998 10,520,000 11,189,914
Beneficial 9.125 1998 10,000,000 10,672,900
General Electric Capital
Reset Nt 8.65 1996 15,000,000 (f) 15,364,650
General Motors Acceptance 5.95 1998 8,000,000 7,872,240
7.00 2000 14,300,000 14,457,872
Greyhound Financial 7.95 1999 9,600,000 10,081,344
Salomon 7.75 2000 5,000,000 5,087,400
8.91 1998 8,400,000 8,771,280
SunAmerica 9.95 2012 8,000,000 9,557,200
______________
Total 93,054,800
_____________________________________________________________________________________________________________________________
Insurance (1.2%)
Berkley (WR) 8.70 2022 10,000,000 10,941,800
Nationwide Trust
Credit Sensitive Nt 9.875 2025 6,500,000 (g) 7,508,605
_____________
Total 18,450,405
_____________________________________________________________________________________________________________________________
Industrial (10.2%)
Aerospace & defense (0.8%)
United Technologies 8.875 2019 10,000,000 11,629,500
_____________________________________________________________________________________________________________________________
Automotive & related (1.1%)
Ford Capital
Gtd Nts 9.00 1996 9,700,000 9,987,217
General Motors 8.875 2003 7,050,000 7,844,112
____________
Total 17,831,329
PAGE
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.7%)
Philip Morris 8.10 1996 10,000,000 10,221,600
_____________________________________________________________________________________________________________________________
Chemicals (0.7%)
Dow Chemical 8.85 2021 10,000,000 11,499,500
_____________________________________________________________________________________________________________________________
Ecological services & equipment (0.5%)
Browning-Ferris Inds 9.25 % 2021 7,000,000 8,316,700
____________________________________________________________________________________________________________________________
Electronics (0.3%)
Harris 10.375 2018 3,900,000 4,375,137
_____________________________________________________________________________________________________________________________
Energy (2.4%)
PDV Amer 7.875 2003 16,500,000 14,964,015
Texaco Capital
Gtd Deb 7.50 2043 12,000,000 12,139,080
USX 9.375 2022 9,200,000 10,289,740
______________
Total 37,392,835
_____________________________________________________________________________________________________________________________
Health care (0.8%)
Schering-Plough
Zero Coupon 7.31 1996 15,000,000 (c,g) 13,729,950
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.8%)
Deere 8.95 2019 10,000,000 11,747,600
_____________________________________________________________________________________________________________________________
Media (1.4%)
Tele-communications
Sr Deb 7.875 2013 5,000,000 4,617,500
Sr Deb 9.875 2022 5,000,000 5,539,750
Time Warner Entertainment 8.375 2033 12,000,000 11,655,000
_____________
Total 21,812,250
_____________________________________________________________________________________________________________________________
Paper & packaging (0.7%)
Georgia-Pacific
Credit Sensitive Nts 9.85 1997 10,000,000 10,601,700
_____________________________________________________________________________________________________________________________
Transportation (1.2%)
AMR 9.75 2021 2,500,000 2,808,225
10.00 2021 8,000,000 9,189,920
10.20 2020 5,000,000 5,836,500
______________
Total 17,834,645
_____________________________________________________________________________________________________________________________
Utilities (11.7%)
Electric (9.0%)
Arizona Public Service
1st Mtge 8.75 2024 5,000,000 5,436,250
Sale Lease-Backed Obligation 8.00 2015 9,000,000 8,636,040
Cajun Electric Power Cooperative
Mtge Trust 8.92 2019 4,960,000 5,427,133
Commonwealth Edison 6.50 2000 9,000,000 8,899,830
8.375 2023 10,000,000 10,436,300
Long Island Lighting 9.625 2024 10,000,000 10,091,700
Ohio Edison 8.75 2022 11,000,000 12,428,460
Public Service Electric & Gas
1st Mtge 8.50 2022 13,859,000 14,716,456
RGS Funding
Sale Lease-Backed Obligation 9.82 2022 9,941,878 11,790,073
San Diego Gas & Electric
1st Mtge 9.625 2020 9,950,000 11,561,005
Southern California Edison
1st Mtge 8.875 2023 21,000,000 23,036,370
Texas Utilities Electric
1st Mtge 9.75 2021 13,000,000 15,164,370
1st Mtge 10.35 2018 1,500,000 1,612,785
______________
Total 139,236,772
_____________________________________________________________________________________________________________________________
Telephone (2.7%)
GTE 10.25 2020 2,000,000 2,310,140
GTE South
1st Mtge 9.375 2030 13,975,000 15,541,737
New York Tel 9.375 2031 7,000,000 7,813,750
Pacific Bell 8.50 2031 15,000,000 15,862,500
______________
Total 41,528,127
_____________________________________________________________________________________________________________________________
Foreign (15.6%)(h)
ABN Amro Bank
(U.S. Dollar) 7.75 2023 12,000,000 12,234,480
Aegon Euro Cv
(U.S. Dollar) 4.75 2004 2,350,000 2,784,750
Alcan Aluminium
(U.S. Dollar) 8.875 2022 9,600,000 10,713,792
Austria Republic Euro
(U.S. Dollar) 10.00 1998 5,000,000 5,464,410
City of Helsinki
Sr Nts
(U.S.Dollar) 8.00 2006 2,000,000 (i) 1,891,600
8.65 2006 1,500,000 (i) 1,487,400
8.75 2006 1,500,000 (i) 1,498,050
9.00 2007 1,650,000 (i) 1,660,808
9.15 2006 1,500,000 (i) 1,517,625
Euratom Euro
(U.S. Dollar) 7.75 1997 6,100,000 6,237,250
Guang Dong Enterprise
(U.S. Dollar) 8.75 2003 15,000,000 (g) 13,503,300
Intl Bank Reconstruction & Development
(U.S. Dollar) 12.375 2002 6,000,000 8,084,520
Intl Finance Euro
(U.S. Dollar) 8.25 1996 8,000,000 8,170,000
Japan Finance
(U.S. Dollar) 9.25 1998 25,950,000 28,259,810
KFW Intl Finance
(U.S. Dollar) 8.50 1999 10,000,000 10,857,900
Kingdom of Denmark Euro
(U.S. Dollar) 7.25 1996 8,000,000 8,104,000
Korea Electric Power
(U.S. Dollar) 7.75 2013 14,000,000 13,785,380
8.00 2002 9,000,000 9,555,930
Peoples Republic China
(U.S. Dollar) 6.50 2004 13,976,000 (b) 13,126,818
Province of Quebec
(U.S. Dollar) 11.00 2015 16,150,000 19,404,548
Republic of Columbia
(U.S. Dollar) 7.25 2004 13,400,000 12,596,000
Republic of Italy
(U.S. Dollar) 6.875 2023 22,000,000 19,709,360
Rodamco
(U.S. Dollar) 7.30 2005 10,000,000 10,233,100
Tokyo Electric Power Euro
(U.S. Dollar) 6.125 2003 21,500,000 20,705,144
______________
Total 241,585,975
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $1,345,243,535) $1,427,425,595
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Preferred stocks (0.3%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
First Chicago
2.875% Cm Cv 60,000 $ 3,382,500
Sonoco Products
2.25% Cv 24,700 1,383,200
____________________________________________________________________________________________________________________________
Total preferred stocks
(Cost: $4,234,300) $ 4,765,700
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (6.1%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <S> <S> <C>
U.S. government agencies (1.0%)
Federal Home Loan Bank Disc Note
06-12-95 5.89% $ 200,000 $ 199,641
Federal Home Loan Mtge Disc Notes
06-20-95 5.89 2,950,000 2,940,876
06-20-95 5.90 3,610,000 3,598,816
Federal Natl Mtge Assn Disc Note
06-12-95 5.92 8,585,000 8,569,549
______________
Total 15,308,882
_____________________________________________________________________________________________________________________________
Certificate of deposit (0.2%)
Natl Bank of Detroit
06-27-95 5.97 3,600,000 3,600,000
_____________________________________________________________________________________________________________________________<PAGE>
PAGE
Commercial paper (4.9%)
BellSouth Telecommunications
06-13-95 5.97 4,200,000 4,191,698
Cargill
06-27-95 5.96 4,300,000 4,281,584
Cargill Global Funding
06-26-95 5.97 4,200,000 (j) 4,182,675
CIT Group Holdings
07-12-95 5.98 3,800,000 3,774,293
Coca-Cola
06-01-95 6.12 6,500,000 6,500,000
Corporate Asset Funding
06-05-95 5.98 8,700,000 8,694,248
06-27-95 5.98 2,800,000 2,787,988
Deutsche Bank Financial
06-12-95 5.98 5,000,000 4,990,910
Dun & Bradstreet
06-01-95 6.15 1,300,000 1,300,000
Intel
06-30-95 5.95 6,500,000 6,469,002
Kredietbank-
North Amer Finance
06-07-95 5.98 7,200,000 7,192,866
Lilly (Eli)
06-19-95 5.98 5,900,000 (j) 5,882,447
Pfizer
06-26-95 5.98 700,000 (j) 697,113
Pitney Bowes Credit
06-21-95 5.97 2,200,000 2,192,740
St. Paul Companies
07-10-95 5.98 3,700,000 (j) 3,676,231
Toyota Motor
06-28-95 5.95 6,200,000 6,172,472
USL Capital
07-07-95 5.99 2,100,000 2,087,506
_____________
Total 75,073,773
_______________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $93,982,655) $ 93,982,655
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,443,460,490)(k) $1,526,173,950
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Security is partially or fully on loan. See Note 5 to the financial statements.
(c) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition.
(d) This security is a collateralized mortgage obligation that pays no interest or principal during its initial accrual period
until payment of previous series within the trust have been paid off. Interest is accrued at an effective yield; similar
to a zero coupon bond.
(e) Principal only represents securities that entitle holders to receive only principal payments on the underlying mortgages.
The yield to maturity of a principal only is sensitive to the rate of principal payments on the underlying mortgage assets.
A slow (rapid) rate of principal repayments may have an adverse (positive) effect on yield to maturity. Interest rate
disclosed represents current yield based upon the current cost basis and estimated timing of future cash flows.
(f) Interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 1995.
(g) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended.
This security has been determined to be liquid under guidelines established by the board of directors.
(h) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in the
currency indicated.
(i) Identifies issues considered to be illiquid, (see Note 6 to the financial statements). Information concerning such
security holdings at May 31, 1995, is as follows:
Security Acquisition Cost
date
City of Helsinki 02-07-95 $1,859,160
City of Helsinki 02-07-95 1,462,155
City of Helsinki 02-07-95 1,472,805
City of Helsinki 02-07-95 1,638,450
City of Helsinki 02-07-95 1,497,750
(j) 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.
(k) On May 31, 1995, the cost of securities for federal income tax purposes was approximately
$1,441,460,000 and the approximate aggregate gross unrealized appreciation and depreciation
based on that cost was:
Unrealized appreciation $92,807,000
Unrealized depreciation (8,093,000)
____________________________________________________________________________________________
Net unrealized appreciation $84,714,000
____________________________________________________________________________________________
</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
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
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
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
Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy.
These companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth
potential due to superiority in technology, marketing or management.
The fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic companies
that explore for, mine and process or distribute gold and other
precious metals. This is the most aggressive and most speculative
IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your financial
advisor or writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534. Read it carefully before you invest or send money.
<PAGE>
PAGE
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota:
800-437-3133
Mpls./St. Paul area:
671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone phones only), including current
fund prices and performance, account values and recent account
transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Selective Fund
IDS Tower 10
Minneapolis, MN 55440-0010
