PAGE
IDS
Stock
Fund
1996 semiannual report
The goals of IDS Stock Fund, Inc. are current income and growth of
capital. The Fund invests primarily in common stocks and securities
convertible into common stock.
Distributed by
American Express
Financial Advisors Inc.
Big names, big business
While some investors like to strive for the potentially outstanding
returns that can be generated by stocks of newer companies, others are
more comfortable with the usually steadier performance provided by stocks
of more established businesses. IDS Stock Fund focuses on stocks in the
latter group, many of which long ago made their marks in American enter-
rise and in some cases, also have a strong international business
presense. These stocks offer the potential dual benefit of growth along
with a steady stream of dividend income.
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 23
Board members and officers 28
IDS mutual funds 29
To our shareholders
William R. Pearce
President of the Fund
Richard H. Warden
Portfolio manager
From the president
If you're an experienced investor, you know that 1995 and the opening
months of 1996 were an unusually strong period for the U.S. stock market.
Perhaps just as important, you also know that history shows that bull
markets don't last forever. Though they're often unpredictable, declines--
whether they're brief or long-lasting, moderate or substantial--are always
a possibility.
That fact reinforces the need for investors to periodically review their
long-term goals and examine whether their investment program remains on
track to achieving them. Your quarterly investment statements are one part
of that monitoring process. The other is a meeting with your American
Express financial advisor. That becomes even more important if there's a
major change in your financial situation or in the financial markets.<PAGE>
William R. Pearce
From the portfolio manager
The stock market continued its powerful rally during the past six months,
setting the stage for a positive performance by IDS Stock Fund. Our
portfolio was well-structured for the environment, and ultimately
generated a total return of more than 12% for the November 1995 through
April 1996 period, the first half of the Fund's fiscal year. (Please note
that a portion of the Fund's total return came in the form of a capital
gain paid to sharesholders last December, which reduced the Fund's net
asset value by a like amount at that time.)
With the favorable forces of falling interest rates, low inflation and
strong corporate profits still in effect, stocks got off to a strong
start last November and maintained their momentum through February. At
that point, with long-term interest rates on the rise and increasing
concern about the possiblity of higher inflation ahead, stocks began to
sag a bit, finishing only slightly higher over the final two months of
the period.
Somewhat conservative structure pays off
As we noted in our last shareholder report, we planned to take a
relatively conservative approach into the current fiscal year. This
included concentrating on large, high-quality companies with substantial
dividends and the wherewithal to succeed in what we expected would be a
more challenging environment. As it turned out, and with some notable
exceptions, companies largely enjoyed relatively smooth sailing during
the period.
For the Fund, much of the most positive performance came from our
holdings in the aerospace, metals (chiefly gold), financial services,
chemicals and retailing sectors. Prominent names included Boeing,
Firstmiss Gold, NationsBank and Gap. On the other hand, among the weaker
sectors for us was the household product group, including Procter &
Gamble and Gillette. Foreign stocks, which comprised about 15% of
portfolio assets, gave us generally good results.<PAGE>
Also enhancing Fund performance was our decision to hold very little cash
reserves, approximately 1% to 2%. Instead of using a higher level of cash
to provide a cushion in the event of a market downturn, we bought put
options on the market. Although the market experienced only minor
setbacks, the options proved to be a more efficient way to buy some
market "insurance" than to hold substantial cash reserves.
Convertible securities help shore up yield
Because of the market's lengthy advance, stock yields continued to
decline during the period, reducing the Fund's yield in the process.
To try to combat this trend, we added more convertible preferred stocks
and convertible bonds, which offer considerably higher yields than most
common stocks.
As we head into the second half of the fiscal year, while we don't
believe a major downturn is necessarily in the offing, we do expect
stocks to find tougher going than they enjoyed in 1995. Therefore, the
volatility we've seen thus far in 1996 probably will continue. Given
that outlook, we plan to hold to a somewhat more conservative strategy,
including letting the cash reserves build up a bit, while we continue to
focus on enhancing the Fund's yield.
Richard H. Warden
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1996 $ 21.61
Oct. 31, 1995 $ 19.96
Increase $ 1.65
Distributions
Nov. 1, 1995 - April 30, 1996
From income $ 0.21
From capital gains $ 0.64
Total distributions $ 0.85
Total return* +12.8%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1996 $21.53
Oct. 31, 1995 $19.91
Increase $ 1.62
<PAGE>
Distributions
Nov. 1, 1995 - April 30, 1996
From income $ 0.15
From capital gains $ 0.64
Total distributions $ 0.79
Total return* +12.4%**
Class Y
(All figures per share)
Net asset value (NAV)
April 30, 1996 $21.61
Oct. 31, 1995 $19.96
Increase $ 1.65
Distributions
Nov. 1, 1995 - April 30, 1996
From income $ 0.23
From capital gains $ 0.64
Total distributions $ 0.87
Total return* +12.9%**
*The prospectus discusses the
effect of sales charges, if
any, on the various classes.
**The total return is a hypothetical
investment in the Fund with all
distributions reinvested.<PAGE>
PAGE
<TABLE>
<CAPTION>
IDS Stock Fund, Inc.
The Fund's ten largest holdings
The ten holdigs listed here make up 11.12% of the Fund's
net assets
_____________________________________________________________________________________
Percent Value
Fund's net assets)(as of April 30, 1996)
_____________________________________________________________________________________
<S> <C> <C>
General Electric 1.31% $40,687,500
A diversified company with interest in manufacturing,
broadcasting (NBC), financial services and technology.
Pfizer 1.22 37,881,250
The leading producer of pharmaceuticals, hospital products,
animal health items, non-prescription medications and
specialty chemicals.
Kimberly-Clark 1.17 36,312,500
World's largest manufacturer of tissue products and other
household, personal care and industrial paper products.
Duracell 1.09 33,937,500
A leading battery company in the world, operating in over
90 countries.
Illinois Tool Works 1.07 33,356,000
A highly-regarded industrial manufacturer, with a broad,
leading-edge base of capital goods and consumer component
products.
GAP 1.06 33,137,500
An international specialty retailer which operates stores
selling casual apparel, shoes and other accessories for
men, women, and children under a number of trade names,
including: Gap, Gapkids, BabyGap, Banana Republic and Old
Navy Clothing Co.
First Chicago 1.06 33,000,000
A bank holding company whose main business is
commercial banking, but with retail banking and credit
card operation as well.
<PAGE>
Freeport-McMoRan Cooper & Gold 1.06 32,875,000
Engaged in the exploration for and development of, mining
and milling of ore containing cooper, gold and silver in
Indonesia.
Gillette 1.04 32,400,000
A leading marketer of blades and razors, toiletry products
and writing instruments.
Johnson & Johnson 1.04 32,375,000
A major producer of health-care products, including
consumer products, medical and dental devices and products,
and a wide variety of ethical and over-the-counter drugs.
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Stock Fund, Inc.
April 30, 1996
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $2,603,815,209) $3,137,507,775
Dividends and accrued interest receivable 4,791,214
Receivable for investment securities sold 53,305,535
U.S. government securities held as collateral (Note 4) 14,421,321
_____________________________________________________________________________________________________________
Total assets 3,210,025,845
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 732,090
Payable for investment securities purchased 24,809,630
Payable upon return of securities loaned (Note 4) 72,810,338
Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 7) 2,974
Accrued investment management services fee 92,698
Accrued distribution fee 5,673
Accrued service fee 43,472
Accrued transfer agency fee 36,368
Accrued administrative services fee 10,330
Other accrued expenses 576,008
_____________________________________________________________________________________________________________
Total liabilities 99,119,581
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $3,110,906,264
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 1,439,862
Additional paid-in capital 2,442,029,965
Undistributed net investment income 4,733,639
Accumulated net realized gain (Note 1) 129,013,101
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies (Note 7) 533,689,697
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $3,110,906,264
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $2,218,270,053
Class B $ 69,976,638
Class Y $ 822,659,573
Net asset value per share of outstanding capital stock: Class A shares 102,668,175 $ 21.61
Class B shares 3,249,696 $ 21.53
Class Y shares 38,068,304 $ 21.61
See accompanying notes to financial statements.<PAGE>
PAGE
Financial statements
Statement of operations
IDS Stock Fund, Inc.
Six months ended April 30, 1996
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Dividends (net of foreign taxes withheld of $231,876) $ 29,896,504
Interest 8,276,900
_____________________________________________________________________________________________________________
Total income 38,173,404
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 6,657,317
Distribution fee -- Class B 181,514
Transfer agency fee 1,646,449
Incremental transfer agency fee -- Class B 3,799
Service fee
Class A 1,779,513
Class B 42,043
Administrative services fee 454,524
Compensation of board members 112,035
Compensation of officers 11,872
Custodian fees 166,696
Postage 108,303
Registration fees 148,539
Reports to shareholders 80,073
Audit fees 16,500
Administrative 10,559
Other 14,491
_____________________________________________________________________________________________________________
Total expenses 11,434,227
Earnings credits on cash balances (Note 2) (3,917)
_____________________________________________________________________________________________________________
Total net expenses 11,430,310
_____________________________________________________________________________________________________________
Investment income -- net 26,743,094
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss)--net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including loss of $19,946 from foreign currency transactions) (Note 3) 138,190,847
Net realized loss on sale of affiliated security (5,215,951)
Net realized gain on expired option contracts written (Note 6) 227,367
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 133,202,263
Net change in unrealized appreciation or depreciation of investments and
on translation of assets and liabilities in foreign currencies 194,008,237
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 327,210,500
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $353,953,594
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Stock Fund, Inc.
_____________________________________________________________________________________________________________
Operations and distributions April 30, 1996 Oct. 31, 1995
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income -- net $ 26,743,094 $ 64,325,841
Net realized gain on investments and foreign currency 133,202,263 89,188,632
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 194,008,237 191,467,078
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 353,953,594 344,981,551
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (17,645,040) (51,850,665)
Class B (271,827) (173,178)
Class Y (7,351,128) (13,057,749)
Net realized gain
Class A (66,949,954) (184,130,267)
Class B (1,317,953) --
Class Y (25,308,530) --
_____________________________________________________________________________________________________________
Total distributions (118,844,432) (249,211,859)
_____________________________________________________________________________________________________________
Capital share transactions (Note 5)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 176,304,464 401,647,287
Class B shares 37,691,592 29,160,960
Class Y shares 130,526,230 743,895,793
Reinvestment of distributions at net asset value
Class A shares 77,784,958 214,124,802
Class B shares 1,578,883 170,388
Class Y shares 28,482,937 11,651,129
Payments for redemptions
Class A shares (188,802,904) (1,025,683,435)
Class B shares (Note 2) (2,365,034) (592,525)
Class Y shares (137,241,325) (86,057,183)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 123,959,801 288,317,216
_____________________________________________________________________________________________________________
Total increase in net assets 359,068,963 384,086,908
Net assets at beginning of period 2,751,837,301 2,367,750,393
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$4,733,639 and $3,258,540) $3,110,906,264 $2,751,837,301
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
Notes to financial statements
IDS Stock Fund, Inc.
(Unaudited as to April 30, 1996)
________________________________________________________________________
1. Summary of significant accounting policies
The Fund is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company.
The Fund invests primarily in common stocks and securities convertible
into common stock. The Fund offers Class A, Class B and Class Y shares.
Class A shares are sold with a front-end sales charge. Class B shares
may be subject to a contingent deferred sales charge and such shares
automatically convert to Class A after eight years. Class Y shares have
no sales charge and are offered only to qualifying institutional
investors.
All classes of shares have identical voting, dividend, liquidation and
other rights, and the same terms and conditions, except that the level
of distribution fee, transfer agency fee and service fee (class specific
expenses) differs among classes. Income, expenses (other than class
specific expenses) and realized and unrealized gains or losses on
investments are allocated to each class of shares based upon its
relative net assets.
Significant accounting policies followed by the Fund are summarized
below:
Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of increase
and decrease in net assets from operations during the period. Actual
results could differ from those estimates.
Valuation of securities
All securities are valued at the close of each business day. Securities
traded on national securities exchanges or included in national market
systems are valued at the last quoted sales price; securities for which
market quotations are not readily available are valued at fair value
according to methods selected in good faith by the board. Determination
of fair value involves, among other things, reference to market indexes,
matrixes and data from independent brokers. Short-term securities
maturing in more than 60 days from the valuation date are valued at the
market price or approximate market value based on current interest
rates; those maturing in 60 days or less are valued at amortized cost.
<PAGE>
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 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.
<PAGE>
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. 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 and paid each calendar
quarter, 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 and interest income, including level-yield amortization of premium
and discount, is accrued daily.
________________________________________________________________________
2. Expenses and sales charges
Effective March 20, 1995, the Fund entered into agreements with American
Express Financial Corporation (AEFC) for managing its portfolio,
providing administrative services and serving as transfer agent as
follows: Under its Investment Management Services Agreement, AEFC
determines which securities will be purchased, held or sold. The
management fee is a percentage of the Fund's average daily net assets in
reducing percentages from 0.53% to 0.4% annually. The fee is adjusted
upward or downward by a performance incentive adjustment based on the
Fund's average daily net assets over a rolling 12-month period as
measured against the change in the Lipper Growth and Income Fund Index.
The maximum adjustment is 0.08% of the Fund's average daily net assets
after deducting 1% from the performance difference. If the performance
difference is less than 1%, the adjustment will be zero. The adjustment
decreased the fee by $474,903 for the six months ended April 30, 1996.<PAGE>
Under an Administrative Services Agreement, the Fund pays AEFC for
administration and accounting services at a percentage of the Fund's
average daily net assets in reducing percentages from 0.04% to 0.02%
annually.
Under a separate Transfer Agency Agreement, AEFC maintains shareholder
accounts and records. The Fund pays AEFC an annual fee per shareholder
account for this service as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the Fund entered into agreements with
American Express Financial Advisors Inc. for distribution and
shareholder servicing- related services as follows: Under a Plan and
Agreement of Distribution, the Fund pays a distribution fee at an annual
rate of 0.75% of the Fund's average daily net assets attributable to
Class B shares for distribution-related services.
Under a Shareholder Service Agreement, the Fund pays a fee for service
provided to shareholders by financial advisors and other servicing
agents. The fee is calculated at a rate of 0.175% of the Fund's average
daily net assets attributable to Class A and Class B shares.
AEFC will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state expense
limitation.
Sales charges received by American Express Financial Advisors Inc. for
distributing Fund shares were $1,534,367 for Class A and $14,267 for
Class B for the six months ended April 30, 1996. The Fund also pays
custodian fees to American Express Trust Company, an affiliate of AEFC.
During the six months ended April 30, 1996, the Fund's custodian and
transfer agency fees were reduced by $3,917 as a result of earnings
credits from overnight cash balances.
The Fund has a retirement plan for its independent board members. Upon
retirement, board members receive monthly payments equal to one-half of
the retainer fee for as many months as they served as board members up
to 120 months. There are no death benefits. The plan is not funded, but
the Fund recognizes the cost of payments during the time board members
serve on the board. The retirement plan expense amounted to $10,218 for
the six months ended April 30, 1996. The plan was terminated April 30,
1996. The total liability for the plan is $101,355, which will be paid
out at some future date.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $1,369,675,601 and $1,380,166,295,
respectively, for the six months ended April 30, 1996. Realized gains
and losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with AEFC were $109,132
for the six months ended April 30, 1996.<PAGE>
4. Lending of portfolio securities
At April 30, 1996, securities valued at $66,995,298 were on loan to
brokers. For collateral, the Fund received $58,389,017 in cash and U.S.
government securities valued at $14,421,321. Income from securities
lending amounted to $171,842 for the six months ended April 30, 1996.
The risks to the Fund of securities lending are that the borrower may
not provide additional collateral when required or return the securities
when due.
______________________________________________________________________________
5. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
Six months ended April 30, 1996
Class A Class B Class Y
____________________________________________________________
Sold 8,465,367 1,806,539 6,261,569
Issued for reinvested 3,831,413 77,977 1,402,119
distributions
Redeemed (9,057,094) (113,168) (6,570,950)
____________________________________________________________
Net increase 3,239,686 1,771,348 1,092,738
____________________________________________________________
Year ended Oct. 31, 1995
Class A Class B* Class Y*
_____________________________________________________________
Sold 21,417,041 1,499,973 40,820,045
Issued for reinvested 12,361,651 8,607 606,754
distributions
Redeemed (55,899,864) (30,232) (4,451,233)
_____________________________________________________________
Net increase (decrease) (22,121,172) 1,478,348 36,975,566
_____________________________________________________________
*Inception date was March 20, 1995.<PAGE>
6. Option contracts written
The number of contracts and premium amounts associated with covered call
options contracts written is as follows:
Six months ended April 30, 1996
__________________________________
Contracts Premium
________________________________________________________________
Balance Oct. 31, 1995 -- $ --
Opened 3,500 227,367
Expired (3,500) (227,367)
________________________________________________________________
Balance April 30, 1996 -- $ --
________________________________________________________________
________________________________________________________________________
7. Foreign currency contracts
At April 30, 1996, the Fund had entered into two foreign currency
exchange contracts that obligate the Fund to deliver currencies at
specified future dates. The unrealized appreciation and/or depreciation
on these contracts is included in the accompanying financial statements.
The terms of the open contracts are as follows:
Exchange date Currency to be Currency to be Unrealized
delivered received depreciation
____________________________________________________________________
May 2, 1996 2,360,230 3,212,745 $1,819
U.S. Dollar Canadian Dollar
May 3, 1996 1,604,540 2,184,212 1,155
U.S. Dollar Canadian Dollar ______
$2,974
<PAGE>
8. Financial highlights
The tables below show certain important financial
information for evaluating the Fund's results.
Fiscal period ended Oct. 31,
Per share income and capital changes*
<TABLE>
<CAPTION>
Class A
1996** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $19.96 $19.48 $21.24 $20.05 $20.02 $17.26
beginning of period
Income from investment operations:
Net investment income .19 .52 .58 .55 .64 .68
Net gains (both realized 2.31 1.96 .21 2.93 1.11 4.02
and unrealized)
Total from investment 2.50 2.48 .79 3.48 1.75 4.70
operations
Less distributions:
Dividends from net (.17) (.49) (.60) (.53) (.63) (.74)
investment income
Dividends from (.68) (1.51) (1.95) (1.76) (1.09) (1.20)
realized gains
Total distributions (.85) (2.00) (2.55) (2.29) (1.72) (1.94)
Net asset value, $21.61 $19.96 $19.48 $21.24 $20.05 $20.02
end of period
Ratios/supplemental data
Class A
1996** 1995 1994 1993 1992 1991
Net assets, end of period $2,218 $1,984 $2,368 $2,059 $1,658 $1,513
(in millions)
Ratio of expenses to .81%+ .79% .76% .73% .72% .65%
average daily net assets
Ratio of net income 1.78%+ 2.61% 2.99% 2.75% 3.21% 3.59%
to average daily net assets
Portfolio turnover rate 48% 69% 75% 76% 77% 58%
(excluding short-term
securities)
Total return++ 12.8% 14.4% 3.9% 18.8% 9.4% 29.0%
*For a share outstanding throughout the period.
Rounded to the nearest cent.
**Six months ended April 30, 1996 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales
charge.
/TABLE
<PAGE>
Financial highlights
Fiscal period ended Oct. 31,
Per share income and capital changes*
<TABLE>
<CAPTION>
Class B Class Y
1996*** 1995** 1996*** 1995**
<S> <C> <C> <C> <C>
Net asset value, $19.91 $18.03 $19.96 $18.03
beginning of period
Income from investment operations:
Net investment income (.08) .27 .20 .29
(loss)
Net gains (both realized 2.49 1.92 2.32 2.01
and unrealized)
Total from investment 2.41 2.19 2.52 2.30
operations
Less distributions:
Dividends from net (.11) (.31) (.19) (.37)
investment income
Dividends from (.68) -- (.68) --
realized gains
Total distributions (.79) (.31) (.87) (.37)
Net asset value, $21.53 $19.91 $21.61 $19.96
end of period
Ratios/supplemental data
Class B Class Y
1996*** 1995** 1996*** 1995**
Net assets, end of period $70 $29 $823 $738
(in millions)
Ratio of expenses to 1.58%+ 1.61%+ .64%+ .64%+
average daily net assets
Ratio of net income 1.01%+ 1.37%+ 1.95%+ 2.38%+
to average daily net assets
Portfolio turnover rate 48% 69% 48% 69%
(excluding short-term
securities)
Total return++ 12.4% 12.1% 12.9% 12.8%
*For a share outstanding throughout the period.
Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B
and Class Y.
***Six months ended April 30, 1996 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales
charge.
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Stock Fund, Inc. (Percentages represent value of
April 30, 1996 (Unaudited) investments compared to net assets)
Common stocks (81.3%)
Issuer Shares Value(a)
<S> <C> <C>
Aerospace & defense (3.6%)
Boeing 350,000 $ 28,743,750
General Motors Cl H 500,000 30,562,500
Lockheed Martin 300,000 24,187,500
Raytheon 500,000 25,312,500
United Technologies 22,300 2,464,150
Total 111,270,400
Airline (0.6%)
AMR 200,000 (b) 17,850,000
Automotive & related (1.7%)
Ford Motor 400,000 14,350,000
General Motors 200,000 10,850,000
Genuine Parts 600,000 26,550,000
Total 51,750,000
Banks and savings & loans (5.4%)
Barnett Banks 400,000 25,350,000
First Chicago 800,000 33,000,000
First Union 400,000 24,600,000
KeyCorp 600,000 23,175,000
Morgan (JP) 200,000 16,825,000
NationsBank 400,000 31,900,000
Norwest Corp 400,000 14,450,000
Total 169,300,000
Beverages & tobacco (2.5%)
Anheuser-Busch 300,000 20,137,500
PepsiCo 400,000 (c) 25,400,000
Philip Morris 350,000 31,543,750
See accompanying notes to investments in securities.
Total 77,081,250
Chemicals (2.8%)
duPont (EI) deNemours 300,000 24,112,500
Hercules 400,000 24,200,000
Monsanto 120,000 18,180,000
Nalco Chemical 400,000 12,200,000
Praxair 200,000 7,725,000
Total 86,417,500
Computers & office equipment (5.6%)
Cisco Systems 600,000 31,125,000
Compaq Computer 465,000 21,680,625
Computer Associates Intl 200,000 14,675,000
General Motors Cl E 350,000 19,731,250
Oracle 750,000 (b) 25,312,500
Pitney Bowes 350,000 17,062,500
Silicon Graphics 1,000,000 (b) 29,625,000
Sterling Software 200,000 (b) 15,550,000
Total 174,761,875
Electronics (0.9%)
Applied Materials 200,000 (b) 8,000,000
Intel 300,000 20,325,000
Total 28,325,000
Energy (0.8%)
Amoco 125,000 9,125,000
Sun 500,000 15,500,000
Total 24,625,000
Financial services (2.7%)
Block (H&R) 750,000 26,343,750
Omega Healthcare Investors 200,000 5,600,000
Simon Property Group REIT 500,000 11,500,000
Travelers 450,000 27,675,000
Travelers/Aetna Property Casualty 500,000 (b,c) 13,812,500
Total 84,931,250
Food (1.5%)
ConAgra 230,500 8,903,062
General Mills 300,000 16,650,000
Heinz (HJ) 600,000 20,325,000
Total 45,878,062
Health care (8.0%)
ALZA 400,000 (b) 11,400,000
American Home Products 300,000 31,650,000
Amgen 500,000 (b) 28,750,000
Forest Labs 309,300 (b) 14,266,462
Johnson & Johnson 350,000 32,375,000
Medtronic 300,000 15,937,500
Merck 317,526 19,210,323
Pfizer 550,000 37,881,250
Schering-Plough 550,000 31,556,250
SmithKline Beecham 500,000 27,000,000
Total 250,026,785
Health care services (1.8%)
Columbia Healthcare 372,500 19,789,063
Service Corp Intl 400,000 (c) 21,250,000
Tenet Healthcare 700,000 (b) 14,350,000
Total 55,389,063
Industrial equipment & services (3.0%)
American Standard 850,000 (b) 24,012,500
Caterpillar 225,000 14,400,000
Deere 525,000 20,409,375
Illinois Tool Works 496,000 33,356,000
Total 92,177,875
Industrial transportation (1.3%)
Norfolk Southern 200,000 16,800,000
Union Pacific 350,000 23,843,750
Total 40,643,750
Insurance (3.6%)
American Intl Group 300,000 27,412,500
EXEL 400,000 28,800,000
General Re 100,000 14,287,500
Prudential Reinsurance Holdings 536,600 12,207,650
UNUM 500,000 29,750,000
Total 112,457,650
Leisure time & entertainment (1.2%)
Disney (Walt) 300,000 18,600,000
Harrah's Entertainment 500,000 (b) 17,250,000
Total 35,850,000
Media (1.7%)
McGraw-Hill 500,000 22,062,500
Time Warner 650,000 26,568,750
Total 48,631,250
Metals (3.7%)
Cameco 442,250 12,383,000
Firstmiss Gold 652,300 (b) 20,058,225
Freeport-McMoRan Copper & Gold 1,000,000 32,875,000
Newmont Mining 300,000 17,362,500
Stillwater Mining 500,000 12,000,000
UCAR Intl 500,000 20,500,000
Total 115,178,725
Multi-industry conglomerates (2.1%)
Emerson Electric 300,000 25,087,500
General Electric 525,000 40,687,500
Total 65,775,000
Paper & packaging (2.1%)
Crown Cork & Seal 600,000 28,275,000
Kimberly-Clark 500,000 36,312,500
Total 64,587,500
Restaurants & lodging (0.3%)
Hilton Hotels 100,000 10,550,000
Retail (4.8%)
Gap 1,100,000 33,137,500
Home Depot 600,000 28,425,000
Intimate Brands 800,000 16,900,000
Nordstrom 500,000 25,437,500
Penney (JC) 550,000 27,225,000
Pep Boys-Manny, Moe & Jack 600,000 20,025,000
Total 151,150,000
Soaps & cosmetics (2.5%)
Duracell 750,000 33,937,500
Gillette 600,000 32,400,000
Procter & Gamble 145,600 12,303,200
Total 78,640,700
Textiles & apparel (0.7%)
Warnaco Group Cl A 800,000 21,000,000
Utilities - natural gas (0.9%)
Columbia Gas System 600,000 29,175,000
Utilities - telephone (2.8%)
AirTouch Communications 501,000 (b) 15,656,250
BellSouth 700,000 28,000,000
GTE 500,000 21,687,500
Millicom Intl Cellular 500,000 (b) 23,625,000
Total 88,968,750
Foreign (12.7%) (d)
Alberta Energy 1,000,000 (b) 19,577,590
Argentaria 535,000 21,652,259
Ashanti Goldfields 500,000 (b) 10,937,500
Bre-X Minerals 45,600 (b) 6,699,724
Canadian Natl Railway 366,900 6,971,100
Central Puerto ADR 340,000 (c,e) 6,205,000
Ericsson (LM) ADR 9,000,000 25,312,500
Lufthansa 115,000 (b,c) 18,243,711
Mutual Risk Management 400,000 15,800,000
National Power 928,500 (b) 24,721,313
Nedcor GDR 446,521 (b) 6,253,527
News Corp ADR 1,000,000 20,375,000
Nokia Preferred 500,000 18,187,500
Northern Telecommunications 325,000 16,737,500
Perez Companc ADR 904,000 (c) 11,245,760
Powergen ADR 775,000 (c) 19,762,500
Renaissance Energy 236,400 6,243,218
Repsol ADR 600,000 22,200,000
Schlumberger 350,000 30,887,500
SGL Carbon 300,000 (e,h) 28,324,077
TOTAL 700,000 23,975,000
Union Bank Norway 420,000 (e) 10,229,790
Veba 500,000 (c) 24,861,156
Total 395,403,225
Total common stocks
(Cost: $2,003,089,361) $2,527,795,610
</TABLE>
<TABLE>
<CAPTION>
Preferred stocks and other (8.1%)
Issuer Shares Value(a)
<S> <C> <C>
AirTouch Communications
4% Cm Cv 525,000 $ 15,684,375
Alco Standard
6.50% Cm Cv 315,850 31,269,150
Calenergy Capital
6.25% Cm Cv 200,000 (e) 10,820,000
Ceridian
2.75% Cm Cv 275,000 29,425,000
Circuit City Stores
5.50% 535,715 (e) 15,997,789
Citicorp
5.50% Cv 250,000 19,250,000
COINTEL
7% Cv 225,000 (f) 12,909,375
Compaq Computer
5.50 % Cm Cv 380,000 17,008,420
ConAgra
4.50% Cv 350,000 13,606,250
Duracell
3% Cm Cv 195,000 9,018,750
First Chicago Nextell
5.50% Cv 237,900 (c) 4,520,100
Greenfield Capital Trust
6% Cm Cv 125,000 (e) 7,156,250
Kenetech
$1.67 Cm Cv 783,000 (f) 929,813
MascoTech
6% Cv 280,400 (c) 3,890,550
Merck
4.50% Cv 225,000 13,668,750
Nedcor
Warrants 110,000 316,250
Pittston Mineral
6.25% Cm Cv 150,000 (e) 5,550,000
Station Casinos
7% Cv 110,000 5,871,250
Vishay Intertechnology
6% Cm Cv 325,000 10,237,500
Wyman-Gordon
6% Cv 1,450,000 25,012,500
Total preferred stocks and other
(Cost: $262,726,752) $ 252,142,072
</TABLE>
<TABLE>
<CAPTION>
Bonds (6.1%)
Issuer Coupon Maturity Principal Value(a)
rate year amount
<S> <C> <C> <C> <C>
Domestic (3.8%)
Applied Materials
Cv 8.50 % 1998 $ 51,500,000 (e,h) $ 21,089,250
Baby Superstore
Cv 4.875 2000 10,000,000 10,100,000
Healthsource
Cv 5.00 2003 15,000,000 (e) 14,737,500
NAC Re
Cv 5.25 2002 4,650,000 (e) 4,580,250
Roche Holdings
Zero Coupon Cv 7.00 2010 30,000,000 (e,g) 13,162,500
SCI Systems
Cv 5.00 2006 10,000,000 (e) 10,800,000
Softkey
Cv Sr Nts 5.50 2000 15,000,000 (e) 13,050,000
SynOptics Communications
Cv 5.25 2003 20,000,000 (e) 19,725,000
Tele Communications Intl
Cv Sub Deb 4.50 2006 10,000,000 9,387,500
Total 116,632,000
Foreign (2.3%) (d)
Ashanti Goldfields
Cv 5.50 2003 15,000,000 14,962,500
BAA Euro 5.75 2006 6,000,000 9,838,122
Grand Metropolitan
Cv 6.50 2000 15,000,000 (e) 17,081,250
Mutual Risk Management
Zero Coupon Cv 7.03 2010 17,100,000 (e,g) 6,391,125
Scandinavian Broadcasting
Cv Sub Deb 7.25 2005 15,000,000 15,637,500
Zurich Reinsurance Centre
Cv 1.00 2003 10,000,000 (e) 7,912,500
Total 71,822,997
Total bonds
(Cost: $162,445,958) $ 188,454,997
</TABLE>
<TABLE>
<CAPTION>
Option purchased (0.2%)
Issuer Number Exercise Expiration Value(a)
of contracts price date
<S> <C> <C> <C> <C>
Put
S&P 500 8,000 $635 June 1996$ 6,000,000
Total option purchased
(Cost: $12,432,000) $ 6,000,000
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (5.2%)
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
<S> <C> <C> <C>
U.S. government agency (0.4%)
Federal Home Loan Mtge Disc Nts
05-13-96 5.18 % $7,685,000 $7,671,756
05-20-96 5.23 5,000,000 4,986,251
Total 12,658,007
Commercial paper (4.8%)
ABN AMRO North American Finance
5-20-96 5.15 6,200,000 6,181,869
A.I . Credit
05-03-96 5.32 300,000 299,912
AIG Funding
05-13-96 5.34 3,400,000 3,393,971
Alabama Power
06-20-96 5.31 2,700,000 2,680,237
Albertson's
05-09-96 5.38 2,200,000 2,197,384
06-05-96 5.30 9,000,000 8,953,800
Barclays U.S. Funding
05-02-96 5.34 1,700,000 1,699,749
BellSouth Telecommunications
06-05-96 5.30 4,700,000 4,675,873
06-06-96 5.30 2,400,000 2,387,328
06-13-96 5.32 2,600,000 2,583,603
CAFCO
06-25-96 5.33 5,000,000 (i) 4,957,286
Ciesco LP
05-24-96 5.32 6,400,000 (i) 6,378,411
06-11-96 5.33 6,600,000 6,560,162
Commerzbank U.S. Finance
06-28-96 5.32 3,900,000 3,866,824
Gannett
05-13-96 5.34 1,000,000 998,227
05-23-96 5.30 8,200,000 (i) 8,173,541
Goldman Sachs
05-28-96 5.31 2,600,000 2,589,704
05-29-96 5.32 7,600,000 7,568,671
05-31-96 5.32 5,500,000 5,475,708
Lincoln Natl
05-16-96 5.31 3,700,000 (i) 3,691,875
Merrill Lynch
05-08-96 5.37 1,600,000 1,598,335
Mobil Australia Finance (Delaware)
05-30-96 5.30 6,000,000 (i) 5,974,480
Nestle Capital
05-13-96 5.34 3,800,000 3,793,261
Pacific Mutual Life
05-01-96 5.33 400,000 400,000
Penney (JC) Funding
06-13-96 5.31 6,500,000 6,459,007
Reed Elsevier
05-21-96 5.32 6,500,000 (i) 6,480,861
05-28-96 5.31 2,400,000 (i) 2,390,478
05-30-96 5.30 10,000,000 (i) 9,957,467
SAFECO Credit
05-16-96 5.34 500,000 498,892
Siemens
05-20-96 5.31 7,000,000 6,978,593
SmithKline Beecham
05-17-96 5.30 1,500,000 1,496,480
Toyota Motor Credit
06-07-96 5.32 7,500,000 7,459,223
Transamerica Finance
05-09-96 5.20 1,200,000 1,198,378
06-12-96 5.32 6,500,000 6,459,884
USAA Capital
05-17-96 5.31 4,007,000 3,997,615
Total 150,457,089
Total short-term securities
(Cost: $163,121,138) $ 163,115,096
Total investments in securities
(Cost: $2,603,815,209) (j) $3,137,507,775
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) Security is partially or fully on loan. See Note 4 to the financial statements.
(d) Foreign security values and principal amounts are stated in U.S. dollars.
(e) 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.
(f) PRIDES - Preferred Redeemed Increased Dividend Equity Securities are structured
as convertible preferred securities issued by a company. Investors receive an enhanced yield but based
upon a specific formula, potential appreciation is limited. PRIDES pay dividends, have voting rights,
are noncallable for three years and upon maturity, convert into shares of common stocks.
(g) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date
of acquisition.
(h) 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 is not fixed but is based on the price of
the common stock the ELK is linked to. The principal amount disclosed equals the current estimated future
value of the amount to be received upon maturity.
(i) 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 the
guidelines established by the board.
(j) At April 30, 1996, the cost of securities for the federal income tax purposes was approximately
$2,603,502,000 and the approximate aggregate gross unrealized appreciation and depreciation based on
that cost was:
Unrealized appreciation $597,443,000
Unrealized depreciation 1,010,304,824
Net unrealized appreciation $534,006,000
</TABLE>
<PAGE>
PAGE
Board members and officers
Board members and officers of the Fund
_____________________________________________________________________
President and interested board member
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent board members
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board, The Valspar Corporation.
_____________________________________________________________________
Interested board members who are officers and/or employees of AEFC
William H. Dudley
Exective vice president, AEFC.
David R. Hubers
President and chief executive officer, AEFC.
<PAGE>
PAGE
John R. Thomas
Senior vice president, AEFC.
_____________________________________________________________________
Officers who also are officers and/or employees of AEFC.
Peter J.Anderson
Vice president of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
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) two coins
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher rated,
lower risk bond categories, or the equivalent, and in government bonds.
(icon of) greek column<PAGE>
PAGE
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) shield with eagle head enclosed
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 enclosed
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with star enclosed<PAGE>
PAGE
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 U.S. equity securities, U.S. and foreign debt securities,
foreign equity securities and money market instruments. The fund
provides diversification among these major investment categories and
has a target mix that represents the way the fund's investments will
be allocated over the long term.
(icon of) bird in a nest
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three pine trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers<PAGE>
PAGE
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) light bulb
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high current
income and, secondarily, to benefit from the growth potential offered
by stock investments.
(icon of) two puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy, Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece<PAGE>
PAGE
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 Stock Fund
IDS Tower 10
Minneapolis, MN 55440-0010
