<PAGE>
PAGE 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 78 (File No. 2-13188) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY (ACT OF 1940)
Amendment No. 34 (File No. 811-772) X
IDS EQUITY PLUS FUND, INC.
IDS Tower 10, Minneapolis, Minnesota 55440-0010
Leslie L. Ogg - 901 S. Marquette Avenue, Suite 2810
Minneapolis, MN 55402-3268
(612) 330-9283
Approximate Date of Proposed Public Offering:
It is proposed that this filing will become effective (check
appropriate box)
immediately upon filing pursuant to paragraph (b)
X on Jan. 28, 1994, pursuant to paragraph (b) of rule 485
60 days after filing pursuant to paragraph (a)
on (date) pursuant to paragraph (a) of rule 485
The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to Section
24-f of the Investment Company Act of 1940. Registrant's Rule
24f-2 Notice for its most recent fiscal year will be filed on or
about Jan. 28, 1994.
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PAGE 2
Cross reference sheet showing location in the prospectus and the
statement of additional information of the information called for
by the items enumerated in Part A and B of Form N-1A.
Negative answers omitted from prospectus are so indicated.
<TABLE><CAPTION>
PART A PART B
Page Number in
Page Number Statement of
Item No. in Prospectus Item No. Additional Information
<S> <C> <S> <C>
1 3 10 30
2 4-6 11 31
3(a) 7 12 NA
(b) NA 13(a) 32-33,53-65
(c) 7-9 (b) 32-33
(c) 32
4(a) 7,9-12,24 (d) 36
(b) 9-12
(c) 9-12 14(a) 25-27*
(b) 25-27*
5(a) 25 (c) 28*
(b) 23,28-29
(c) NA 15(a) NA
(d) 23 (b) 51
(e) 24 (c) 28*
(f) 28-29
16(a) 28-29*
6(a) 24-25 (b) 47-49
(b) NA (c) NA
(c) NA (d) None
(d) NA (e) NA
(e) 3 (f) 50-51
(f) 21-22 (g) NA
(g) 22-23 (h) 51,51
(i) 51,49
7(a) 23-24
(b) 12-13,15 17(a) 33-36
(c) 15-17 (b) 36
(d) 13 (c) 33-36
(e) NA (d) 35
(f) 23-24 (e) 36
8(a) 18-19 18(a) 24-25*
(b) NA (b) NA
(c) NA
(d) 19 19(a) 40-42
(b) 39-40
9 None (c) NA
20 46-47
21(a) 49
(b) 50
(c) NA
22(a) NA
(b) 37-39
23 51-52
*Designates page number in the prospectus, which is hereby
incorporated by reference in this Statement of Additional
Information.
</TABLE>
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PAGE 3
IDS Equity Plus Fund
Prospectus
Jan. 28, 1994
The goals of IDS Equity Plus Fund, Inc. are growth of capital and
income. The fund invests primarily in moderate growth stocks,
higher yielding equities and debt securities.
This prospectus contains facts that can help you decide if the fund
is the right investment for you. Read it before you invest and
keep it for future reference.
Additional facts about the fund are in a Statement of Additional
Information (SAI), filed with the Securities and Exchange
Commission. The SAI, dated Jan. 28, 1994, is incorporated here by
reference. For a free copy contact IDS Shareholder Service.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
SHARES IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK, AND SHARES ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY.
IDS Shareholder Service
P.O. Box 534
Minneapolis, MN
55440-0534
612-671-3733
TTY: 800-846-4852
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PAGE 4
Table of contents
The fund in brief
Goals
Types of fund investments
Manager and distributor
Portfolio manager
Sales charge and fund expenses
Sales charge
Operating expenses
Performance
Financial highlights
Total returns
Key terms
How to buy, exchange or sell shares
How to buy shares
How to exchange shares
How to sell shares
Reductions of the sales charge
Waivers of the sales charge
Special shareholder services
Services
Quick telephone reference
Distributions and taxes
Dividend and capital gain distributions
Reinvestments
Taxes
Investment policies
Facts about investments and their risks
Valuing assets
How the fund is organized
Shares
Voting rights
Shareholder meetings
Directors and officers
Investment manager and transfer agent
Distributor
About IDS
General information
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PAGE 5
The fund in brief
Goals
IDS Equity Plus Fund seeks to provide shareholders with growth of
capital and income. Because any investment involves risk,
achieving these goals cannot be guaranteed. Only shareholders can
change the goals.
Types of fund investments
The fund is a diversified mutual fund that invests in stocks of
companies with moderate growth that pay dividends, debt securities,
preferred stocks, convertible securities, derivative instruments
and money market instruments. The companies are located both in
the U.S. and in foreign countries. Some of the fund's investments
may be considered speculative and involve additional investment
risks.
Manager and distributor
The fund is managed by IDS Financial Corporation (IDS), a provider
of financial services since 1894. IDS currently manages more than
$35 billion in assets for the IDS MUTUAL FUND GROUP. Shares of the
fund are sold through IDS Financial Services Inc., a wholly owned
subsidiary of IDS.
Portfolio manager
Joe Barsky joined IDS in 1979 and serves as vice president and
senior portfolio manager. He has managed this fund since 1983. In
addition, he serves as vice president and senior portfolio manager
of IDS Equity Advisors, a division of IDS Advisory Group, Inc. He
also is the portfolio manager of IDS Stock Fund.
Sales charge and fund expenses
Sales charge
When you buy shares, you pay a maximum sales charge of 5% of the
public offering price. This charge can be reduced, depending on
your total investments in IDS funds. See "Reductions of the sales
charge."
Shareholder transaction expenses
Maximum sales charge on purchases
(as a percent of offering price).................5%
Operating expenses
The fund pays certain expenses out of its assets; the expenses are
reflected in the fund's daily share price and dividends, and are
not charged directly to shareholder accounts. The following chart
gives a projection of these expenses -- based on historical
expenses.
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PAGE 6
Annual fund operating expenses
(% of average daily net assets):
Management fee 0.55%
12b-1 fee 0.05%
Other expenses 0.17%
Total 0.77%
Example: Suppose for each year for the next 10 years, fund
expenses are as above and annual return is 5%. If you sold your
shares at the end of the following years, for each $1,000 invested,
you would pay total expenses of:
1 year 3 years 5 years 10 years
$57 $73 $91 $141
This example does not represent actual expenses, past or future.
Actual expenses may be higher or lower than those shown. Because
the fund pays annual distribution fees, shareholders who stay in
the fund for more than 20 years may indirectly pay an equivalent
of more than a 7.25% sales charge, the maximum permitted by the
National Association of Securities Dealers.
Fund expenses include fees paid to IDS for:
o managing its portfolio, providing investment research and
administrative services
o distribution (known as 12b-1 fees, after the federal rule that
authorizes them)
o transfer agent services, including handling shareholder
accounts and records.
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PAGE 7
Performance
Financial highlights
<TABLE><CAPTION>
Fiscal year ended Nov. 30,
Per share income and capital changes*
1993 1992 1991 1990 1989 1988 1987 1986 19851985**1984
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value $11.19 $10.18 $ 8.82 $10.01 $ 8.09 $7.38 $9.55 $8.87 $7.23 $8.33
beginning of year
Income from investment operations:
Net investment income .11 .13 .18 .26 .34 .24 .24 .24 .28 .23
Net gains (losses) on 1.31 1.69 1.75 (.55) 1.89 .94 (.27) 1.98 1.81 (1.11)
securities (both realized
and unrealized)
Total from investment 1.42 1.82 1.93 (.29) 2.23 1.18 (.03) 2.22 2.09 (.88)
operations
Less distributions:
Dividends from net (.11) (.14) (.20) (.27) (.31) (.23) (.26) (.24) (.26) (.22)
investment income
Distributions from (.46) (.67) (.37) (.63) -- (.24) (1.88) (1.30) (.19) --
realized gains
Total distributions (.57) (.81) (.57) (.90) (.31) (.47) (2.14) (1.54) (.45) (.22)
Net asset value, $12.04 $11.19 $10.18 $ 8.82 $10.01 $8.09 $7.38 $9.55 $8.87 $7.23
end of year
Ratios/supplemental data
1993 1992 1991 1990 1989 1988 1987 1986 1985** 1984
Net assets, end of year $617 $475 $400 $348 $392 $357 $360 $377 $337 $314
(in millions)
Ratio of expenses to .77% .74% .67% .63% .57% .68% .57% .51% .53% .58%
average daily net assets
Ratio of net income to 1.00% 1.22% 1.82% 2.78% 3.58% 2.80% 2.13% 2.33% 3.06% 2.80%
average daily net assets
Portfolio turnover rate 41% 42% 46% 55% 49% 81% 115% 72% 110% 83%
(excluding short-term
securities)
Total return*** 13.2% 19.2% 22.9% (3.3%) 27.9% 16.0% (0.8%) 25.0% 28.9% (10.6%)
*For a share outstanding throughout the year. Rounded to the nearest cent.
**On July 10, 1985, shareholders approved a change in the fund's goals from
capital appreciation to growth of capital and income, and a change in the
fund's name from IDS Variable Payment Fund, Inc. to IDS Equity Plus Fund, Inc.
***Total return does not reflect payment of a sales charge.
</TALBE>
The information in this table has been audited by KPMG Peat
Marwick, independent auditors. The auditors' report and additional
information about the performance of the fund is contained in the
fund's annual report which, if not included with this prospectus,
may be obtained without charge.
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PAGE 8
Total returns
Average annual total returns as of Nov. 30, 1993, on purchases made
1, 5 and 10 years earlier
Purchase 1 year 5 years 10 years
made ago ago ago
Equity Plus + 7.5% +14.3% +12.4%
S&P 500 +10.1% +14.7% +14.7%
Lipper Growth and +16.1% +13.4% +13.3%
Income Fund Index
Cumulative total returns as of Nov. 30, 1993, on purchases made 1,
5 and 10 years earlier
Purchase 1 year 5 years 10 years
made ago ago ago
Equity Plus + 7.5% +94.7% +222.9%
S&P 500 +10.1% +88.4% +295.4%
Lipper Growth and +16.1% +87.3% +247.2%
Income Fund Index
These examples show total returns from hypothetical investments in
the fund. These returns are compared to those of popular indexes
for the same periods.
For purposes of calculation, information about the fund assumes a
sales charge of 5%, makes no adjustments for taxes an investor may
have paid on the reinvested income and capital gains, and covers a
period of widely fluctuating securities prices. Returns shown
should not be considered a representation of the fund's future
performance.
The fund invests in common stocks that may be different from those
in the indexes. The indexes reflect reinvestment of all
distributions and changes in market prices, but exclude brokerage
commissions or other fees.
Standard & Poor's 500 Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
Lipper Growth and Income Fund Index, published by Lipper Analytical
Services, Inc., includes 30 funds that are generally similar to
this fund, although some funds in the index may have somewhat
different investment policies or objectives.
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PAGE 9
Key terms
Net asset value (NAV) - Value of a single fund share. It is the
total market value of all of a fund's investments and other assets,
less any liabilities, divided by the number of shares outstanding.
The NAV is the price you receive when you sell your shares. It
usually changes from day to day, and is calculated at the close of
business, normally 3 p.m. Central time, each business day (any day
the New York Stock Exchange is open).
Public offering price - Price at which you buy shares. It is the
NAV plus the sales charge. NAVs and public offering prices of IDS
funds are listed each day in major newspapers and financial
publications.
Investment income - Dividends and interest earned on securities
held by the fund.
Capital gains or losses - Increase or decrease in value of the
securities the fund holds. Gains are realized when securities that
have increased in value are sold. A fund may also have unrealized
gains or losses when securities increase or decrease in value but
are not sold.
Distributions - Payments to shareholders of two types: investment
income (dividends) and realized net long-term capital gains
(capital gains distributions).
Total return - Sum of all of your returns for a given period,
assuming you reinvest all distributions. Calculated by taking the
total value of shares you own at the end of the period (including
shares acquired by reinvestment), less the price of shares you
purchased at the beginning of the period.
Average annual total return - The annually compounded rate of
return over a given time period (usually two or more years) --
total return for the period converted to an equivalent annual
figure.
How to buy, exchange or sell shares
How to buy shares
If you're investing in this fund for the first time, you'll need to
set up an account. Your financial planner will help you fill out
and submit an application. Once your account is set up, you can
choose among several convenient ways to invest.
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PAGE 10
Important: When opening an account, you must provide IDS with your
correct Taxpayer Identification Number (Social Security or Employer
Identification number). See "Distributions and taxes."
When you buy shares for a new or existing account, the price you
pay per share is determined at the close of business on the day
your investment is received and accepted at the Minneapolis
headquarters.
Purchase policies
o Investments must be received and accepted in the Minneapolis
headquarters on a business day before 3 p.m. Central time to
be included in your account that day and to receive that day's
share price. Otherwise your purchase will be processed the
next business day and you will pay the next day's share price.
o The minimums allowed for investment may change from time to
time.
o Wire orders can be accepted only on days when your bank, IDS,
the fund and Norwest Bank Minneapolis are open for business.
o Wire purchases are completed when wired payment is received
and the fund accepts the purchase.
o IDS and the fund are not responsible for any delays that occur
in wiring funds, including delays in processing by the bank.
o You must pay any fee the bank charges for wiring.
o The fund reserves the right to reject any application for any
reason.
</TABLE>
<TABLE><CAPTION>
Three ways to invest
1
<S> <C> <C>
By regular account Send your check and application Minimum amounts
(or your name and account number Initial investment: $2,000
if you have an established account) Additional
to: investments: $ 100
IDS Financial Services Inc. Account balances: $ 300*
P.O. Box 74 Qualified retirement
Minneapolis, MN 55440-0074 accounts: none
Your financial planner will help
you with this process.
2
By scheduled Contact your financial planner Minimum amounts
investment plan to set up one of the following Initial investment: $100
scheduled plans: Additional
investments: $100/mo
o automatic payroll deduction Account balances: none
(on active plans of
o bank authorization monthly payments)
o direct deposit of
Social Security check
o other plan approved by the fund<PAGE>
PAGE 11
3
By wire If you have an established account, If this information is not
you may wire money to: included, the order may be
rejected and all money
Norwest Bank Minneapolis received by the fund, less
Routing No. 091000019 any costs the fund or IDS
Minneapolis, MN incurs, will be returned
Attn: Domestic Wire Dept. promptly.
Give these instructions: Minimum amounts
Credit IDS Account #00-30-015 Each wire investment: $1,000
for personal account # (your
account number) for (your name).
*If your account balance falls below $300, IDS will ask you in writing to bring it up to $300 or establish a scheduled
investment plan. If you don't do so within 30 days, your shares can be redeemed and the proceeds mailed to you.
</TABLE>
How to exchange shares
You can exchange your shares of the fund at no charge for shares of
any other publicly offered fund in the IDS MUTUAL FUND GROUP
available in your state, except IDS Planned Investment Account.
For complete information, including fees and expenses, read the
prospectus carefully before exchanging into a new fund.
If your exchange request arrives at the Minneapolis headquarters
before the close of business, your shares will be redeemed at the
net asset value set for that day. The proceeds will be used to
purchase new fund shares the same day. Otherwise, your exchange
will take place the next business day at that day's net asset
value.
For tax purposes, an exchange represents a sale and purchase and
may result in a gain or loss. However, you cannot create a tax
loss (or reduce a taxable gain) by exchanging from the fund within
91 days of your purchase. For further explanation, see the SAI.
How to sell shares
You can sell (redeem) your shares at any time. IDS Shareholder
Service will mail payment within seven days after receiving your
request.
When you sell shares, the amount you receive may be more or less
than the amount you invested. Your shares will be redeemed at net
asset value at the close of business on the day your request is
accepted at the Minneapolis headquarters. If your request arrives
after the close of business, the price per share will be the net
asset value at the close of business on the next business day.
A redemption is a taxable transaction. If the fund's net asset
value when you sell shares is more or less than the cost of your
shares, you will have a gain or loss, which can affect your tax
liability. Redeeming shares held in an IRA or qualified retirement
account may subject you to certain federal taxes, penalties and
reporting requirements. Consult your tax adviser.
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PAGE 12
<TABLE><CAPTION>
Two ways to request an exchange or sale of shares
1
<S> <C>
By letter Include in your letter:
o the name of the fund(s)
o your account number(s) (for exchanges, both funds must
Regular mail: be registered in the same ownership)
IDS Shareholder Service o your Taxpayer Identification Number (TIN)
Attn: Redemptions o the dollar amount or number of shares you want to
PO Box 534 exchange or sell
Minneapolis, MN o signature of all registered account owners
55440-0534 o for redemptions, indicate how you want your sales
proceeds delivered to you
o any paper certificates of shares you hold
Express mail:
IDS Shareholder Service
Attn: Redemptions
10th Floor
733 Marquette Ave
Minneapolis, MN 55402
2
By phone
IDS Telephone Transaction o The fund and IDS will honor any telephone exchange
Service or redemption request believed to be authentic and will
800-437-3133 or use reasonable procedures to confirm that they are. This
612-671-3800 includes asking identifying questions and tape recording
calls. So long as reasonable procedures are followed,
neither the fund nor IDS will be liable for any loss
resulting from fraudulent requests.
o Phone exchange and redemption privileges automatically
apply to all accounts except custodial, corporate or
qualified retirement accounts unless you request these
privileges NOT apply by writing IDS Shareholder Service.
Each registered owner must sign the request.
o IDS answers phone requests promptly, but you may
experience delays when call volume is high. If you are
unable to get through, use mail procedure as an
alternative.
o Phone privileges may be modified or discontinued at any
time.
Minimum amount
Redemption: $100
Maximum amount
Redemption: $50,000
</TABLE>
Exchange policies:
o You may make up to three exchanges within any 30-day period,
with each limited to $300,000. These limits do not apply to
scheduled exchange programs and certain employee benefit plans or
other arrangements through which one shareholder represents the
interests of several. Exceptions may be allowed with pre-approval
of the fund.
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PAGE 13
o If your exchange creates a new account, it must satisfy the
minimum investment amount for new purchases.
o Once we receive your exchange request, you cannot cancel it.
o Shares of the new fund may not be used on the same day for
another exchange.
o If your shares are pledged as collateral, the exchange will be
delayed until written approval is obtained from the secured party.
o IDS and the fund reserve the right to reject any exchange, limit
the amount, or modify or discontinue the exchange privilege, to
prevent abuse or adverse effects on the fund and its shareholders.
For example, if exchanges are too numerous or too large, they may
disrupt the fund's investment strategies or increase its costs.
Redemption policies:
o A "change of mind" option allows you to change your mind after
requesting a redemption and to use all or part of the proceeds to
buy new shares in the same account at the net asset value, rather
than the offering price on the date of a new purchase. To do so,
send a written request within 30 days of the date your redemption
request was received. Include your account number and mention this
option. This privilege may be limited or withdrawn at any time,
and it may have tax consequences.
o A telephone redemption request will not be allowed within 30
days of a phoned-in address change.
Important: If you request a redemption of shares you recently
purchased by a check or money order that is not guaranteed, the
fund will wait for your check to clear. Please expect a minimum of
10 days from the date of purchase before IDS mails a check to you.
(A check may be mailed earlier if your bank provides evidence
satisfactory to the fund and IDS that your check has cleared.)
<TABLE><CAPTION>
Three ways to receive payment when you sell shares
1
<S> <C>
By regular or express mail o Mailed to the address of record.
o Payable to names listed on the account.
NOTE: The express mail delivery charges
you pay will vary depending on the
courier you select.
2
By wire o Minimum wire redemption: $1,000.
o Request that money be wired to your bank.
o Bank account must be in the same
ownership as the IDS account.
NOTE: Pre-authorization required. For
instructions, contact your financial
planner or IDS Shareholder Service.
<PAGE>
PAGE 14
3
By scheduled payout plan o Minimum payment: $50.
o Contact your financial planner or IDS
Shareholder Service to set up regular
payments to you on a monthly, bimonthly,
quarterly, semiannual or annual basis.
o Buying new shares while under a payout
plan may be disavantageous because of
sales charges.
</TABLE>
Reductions of the sales charge
You pay a 5% sales charge on the first $50,000 of your total
investment and less on investments after the first $50,000:
Total investment Sales charge as a
percent of:*
Public Net
offering amount
price invested
Up to $50,000 5.0% 5.26%
Next $50,000 4.5 4.71
Next $150,000 4.0 4.17
Next $250,000 3.0 3.09
Next $500,000 2.0 2.04
Next $2,000,000 1.0 1.01
More than $3,000,000 0.5 0.50
* To calculate the actual sales charge on an investment greater
than $50,000, amounts for each applicable increment must be
totaled. See the SAI.
Your sales charge may be reduced, depending on the totals of:
o the amount you are investing in this fund now,
o the amount of your existing investment in this fund, if any, and
o the amount you and your immediate family (spouse or unmarried
children under 21) are investing or have in other funds in the IDS
MUTUAL FUND GROUP that carry a sales charge.
Other policies that affect your sales charge:
o IDS Cash Management Fund, IDS Tax-Free Money Fund and IDS
Planned Investment Account do not carry sales charges. However,
you may count investments in these funds if you acquired shares in
them by exchanging shares from IDS funds that carry sales charges.
o IRA purchases or other employee benefit plan purchases made
through a payroll deduction plan or through a plan sponsored by an
employer, association of employers, employee organization or other
similar entity, may be added together to reduce sales charges for
all shares purchased through that plan.
<PAGE>
PAGE 15
For more details, see the SAI.
Waivers of the sales charge
Sales charges do not apply to:
o Current or retired trustees, directors, officers or employees of
the fund or IDS or its subsidiaries, their spouses and unmarried
children under 21.
o Current or retired IDS planners, their spouses and unmarried
children under 21.
o Qualified employee benefit plans* if the plan:
- has at least $1 million invested in funds of the IDS MUTUAL
FUND GROUP; or
- has 500 or more participants; or
- uses a daily transfer recordkeeping service offering
participants daily access to IDS funds.
(Participants in certain qualified plans for which the initial
sales charge is waived may be subject to a deferred sales charge of
up to 4% on certain redemptions. For more information, see the
SAI.)
o Trust companies or similar institutions, and charitable
organizations that meet the definition in Section 501(c)(3) of the
Internal Revenue Code*. These must have at least $1 million
invested in funds of the IDS MUTUAL FUND GROUP.
o Purchases made within 30 days after a redemption of shares (1)
of an IDS product in a qualified plan subject to a deferred sales
charge or (2) in IDS Strategy Fund, up to the amount redeemed.
Send the fund a written request along with your payment, indicating
the amount of the redemption and the date on which it occurred.
o Purchases made with dividend or capital gain distributions from
another fund in the IDS MUTUAL FUND GROUP that has a sales charge.
*Eligibility must be determined in advance by IDS. To do so,
contact your financial planner.
Special shareholder services
Services
To help you track and evaluate the performance of your investments,
IDS provides these services:
Quarterly statements listing all of your holdings and transactions
during the previous three months.
Yearly tax statements featuring average-cost-basis reporting of
capital gains or losses if you redeem your shares along with
distribution information - which simplifies tax calculations.
<PAGE>
PAGE 16
A personalized mutual fund progress report detailing returns on
your initial investment and cash-flow activity in your account. It
calculates a total return to reflect your individual history in
owning fund shares. This report is available from your financial
planner.
Quick telephone reference
IDS 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
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
Distributions and taxes
The fund distributes to shareholders investment income and net
capital gains. It does so to qualify as a regulated investment
company and to avoid paying corporate income and excise taxes.
Dividend and capital gains distributions will have tax consequences
you should know about.
Dividend and capital gain distributions
The fund distributes its net investment income (dividends and
interest earned on securities held by the fund, less operating
expenses) to shareholders of record at the end of each calendar
quarter. Short-term capital gains distributed are included in the
net investment income. Net realized capital gains, if any, from
selling securities are distributed at the end of the calendar year.
Before they're distributed, both net investment income and net
capital gains are included in the value of each share. After
they're distributed, the value of each share drops by the per-share
amount of the distribution. (If your distributions are reinvested,
the total value of your holdings will not change.)
<PAGE>
PAGE 17
Reinvestments
Dividends and capital gain distributions are automatically
reinvested in additional shares of the fund, unless:
o you request the fund in writing or by phone to pay
distributions to you in cash, or
o you direct the fund to invest your distributions in any
publicly available IDS fund for which you've previously opened
an account, except for IDS Planned Investment Account.
You pay no sales charge on shares purchased through reinvestment in
any IDS fund. The reinvestment price is the net asset value at
close of business on the day the distribution is paid. (Your
quarterly statement from IDS will confirm the amount invested and
the number of shares purchased.)
If you choose cash distributions, you will receive only those
declared after your request has been processed.
If the U.S. Postal Service cannot deliver the checks for the cash
distributions, we will reinvest the checks into your account at the
then-current net asset value and make future distributions in the
form of additional shares.
Taxes
Distributions are subject to federal income tax and also may be
subject to state and local taxes. Distributions are taxable in the
year the fund pays them regardless of whether you take them in cash
or reinvest them.
Each January, IDS sends you a statement showing the kinds and total
amount of all distributions you received during the previous year.
You must report all distributions on your tax returns, even if they
are reinvested in additional shares.
"Buying a dividend" creates a tax liability. This means buying
shares shortly before a net investment income or a capital gain
distribution. You pay the full pre-distribution price for the
shares, then receive a portion of your investment back as a
distribution, which is taxable.
Redemptions and exchanges subject you to a tax on any capital gain.
If you sell shares for more than their cost, the difference is a
capital gain. Your gain may be either short term (for shares held
for one year or less) or long term (for shares held for more than
one year).
Your Taxpayer Identification Number (TIN) is important. As with
any financial account you open, you must list your current and
correct Taxpayer Identification Number (TIN) -- either your Social
Security or Employer Identification number. The TIN must be
certified under penalties of perjury on your application when you
open an account at IDS.
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PAGE 18
If you don't provide the TIN to IDS, or the TIN you report is
incorrect, you could be subject to backup withholding of 31% of
taxable distributions and proceeds from certain sales and
exchanges. You also could be subject to further penalties, such
as:
o a $50 penalty for each failure to supply your correct TIN
o a civil penalty of $500 if you make a false statement that
results in no backup withholding
o criminal penalties for falsifying information
You also could be subject to backup withholding because you failed
to report interest or dividends on your tax return as required.
How to determine the correct TIN
Use the Social Security or
For this type of account: Employer Identification number
of:
Individual or joint account The individual or first person
listed on the account
Custodian account of a minor The minor
(Uniform Gift/Transfer to Minors
Act)
A living trust The grantor-trustee (the person
who puts the money into the
trust)
An irrevocable trust, pension The legal entity (not the
trust or estate personal representative or
trustee, unless no legal entity
is designated in the account
title)
Sole proprietorship or The owner or partnership
partnership
Corporate The corporation
Association, club or The organization
tax-exempt organization
For details on TIN requirements, ask your financial planner or
local IDS office for federal Form W-9, "Request for Taxpayer
Identification Number and Certification."
Important: This information is a brief and selective summary of
certain federal tax rules that apply to this fund. Tax matters are
highly individual and complex, and you should consult a qualified
tax adviser about your personal situation.
<PAGE>
PAGE 19
Investment policies
The fund invests in stocks of companies with moderate growth that
pay dividends, debt securities, preferred stocks, convertible
securities, derivative instruments and money market instruments.
The companies are located both in the U.S. and in foreign
countries.
Capital growth is derived from an increase in the market value of
assets the fund owns. Income is derived primarily from dividends
and interest.
The various types of investments the portfolio manager uses to
achieve investment performance are described in more detail in the
next section and in the SAI.
Facts about investments and their risks
Common stocks: Common stocks are subject to market fluctuations.
Stocks of larger, established companies that pay dividends may be
less volatile than the stock market as a whole.
Preferred stocks: If a company earns a profit, it generally must
pay its preferred stockholders a dividend at a pre-established
rate.
Convertible securities: These securities generally are preferred
stocks or bonds that can be exchanged for other securities, usually
common stock, at prestated prices. When the trading price of the
common stock makes the exchange likely, the convertible securities
trade more like common stock.
Debt securities: The price of an investment-grade bond fluctuates
as interest rates change or if its credit rating is upgraded or
downgraded. Prices of bonds below investment grade may react more
to the ability of the issuing company to pay interest and principal
when due. These bonds have greater price fluctuations and are more
likely to experience a default.
Foreign investments: Securities of foreign companies and
governments may be traded in the United States, but often they are
traded only on foreign markets. Frequently, there is less
information about foreign companies and less government supervision
of foreign markets. Foreign investments are subject to political
and economic risks of the countries in which the investments are
made including the possibility of seizure or nationalization of
companies, imposition of withholding taxes on income, establishment
of exchange controls or adoption of other restrictions that might
affect an investment adversely. If an investment is made in a
foreign market, the local currency must be purchased. This is done
by using a forward contract in which the price of the foreign
currency in U.S. dollars is established on the date the trade is
made, but delivery of the currency is not made until the securities
<PAGE>
PAGE 20
are received. As long as the fund holds foreign currencies or
securities valued in foreign currencies, the price of a fund share
will be affected by changes in the value of the currencies relative
to the U.S. dollar. Because of the limited trading volume in some
foreign markets, efforts to buy or sell a security may change the
price of the security, and it may be difficult to complete the
transaction. The fund may invest up to 15% of its total assets in
foreign investments.
Derivative instruments: The portfolio manager may use derivative
instruments in addition to securities to achieve investment
performance. Derivative instruments include futures, options and
forward contracts. Such instruments may be used to maintain cash
reserves while remaining fully invested, to offset anticipated
declines in values of investments, to facilitate trading, to reduce
transaction costs, or to pursue higher investment returns.
Derivative instruments are characterized by requiring little or no
initial payment and a daily change in price based on or derived
from a security, a currency, a group of securities or currencies,
or an index. A number of strategies or combination of instruments
can be used to achieve the desired investment performance
characteristics. A small change in the value of the underlying
security, currency or index will cause a sizable gain or loss in
the price of the derivative instrument. Derivative instruments
allow the portfolio manager to change the investment performance
characteristics very quickly and at lower costs. Risks include
losses of premiums, rapid changes in prices, defaults by other
parties, and inability to close such instruments. The fund will
use derivative instruments only to achieve the same investment
performance characteristics it could achieve by directly holding
those securities and currencies permitted under the investment
policies. Subject to SEC guidelines, the fund will set aside cash
or appropriate liquid assets in a segregated account to cover its
portfolio obligations. No more than 5% of the fund's net assets
can be used at any one time for good faith deposits on futures and
premiums for options on futures that do not offset existing
investment positions. For further information, see the options and
futures appendix in the SAI.
Securities and derivative instruments that are illiquid: Illiquid
means the security or derivative instrument cannot be sold quickly
in the normal course of business. Some investments cannot be
resold to the U.S. public because of their terms or government
regulations. All securities and derivative instruments, however,
can be sold in private sales, and many may be sold to other
institutions and qualified buyers or on foreign markets. The
portfolio manager will follow guidelines established by the board
of directors and consider relevant factors such as the nature of
the security and the number of likely buyers when determining
whether a security is illiquid. No more than 10% of the fund's net
assets will be held in securities and derivative instruments that
are illiquid.
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PAGE 21
Money market instruments: Short-term debt securities rated in the
top two grades are used to meet daily cash needs and at various
times to hold assets until better investment opportunities arise.
Generally less than 25% of the fund's assets are in these money
market instruments. However, for temporary defensive purposes
these investments could exceed that amount for a limited period of
time.
The investment policies described above may be changed by the board
of directors.
Lending portfolio securities: The fund may lend its securities to
earn income so long as borrowers provide collateral equal to the
market value of the loans. The risks are that borrowers will not
provide collateral when required or return securities when due.
Unless shareholders approve otherwise, loans may not exceed 30% of
the fund's net assets.
Valuing assets
o Securities (except bonds) and assets with available market
values are valued on that basis.
o Securities maturing in 60 days or less are valued at amortized
cost.
o Bonds and assets without readily available market values are
valued according to methods selected in good faith by the
board of directors.
How the fund is organized
The fund is a diversified, open-end management investment company,
as defined in the Investment Company Act of 1940. Originally
incorporated on March 18, 1957 in Nevada, the fund changed its
state of incorporation on June 13, 1986 by merging into a Minnesota
corporation incorporated on April 7, 1986. The fund headquarters
are at 901 S. Marquette Ave., Suite 2810, Minneapolis, MN 55402-
3268.
Shares
The fund is owned by its shareholders. All shares issued by the
fund are of the same class -- capital stock. Par value is 1 cent
per share. Both full and fractional shares can be issued.
The fund no longer issues stock certificates.
Voting rights
As a shareholder, you have voting rights over the fund's management
and fundamental policies. You are entitled to one vote for each
share you own.
<PAGE>
PAGE 22
Shareholder meetings
The fund does not hold annual shareholder meetings. However, the
directors may call meetings at their discretion, or on demand by
holders of 10% or more of the outstanding shares, to elect or
remove directors.
Directors and officers
Shareholders elect a board of directors who oversee the operations
of the fund and choose its officers. Its officers are responsible
for day-to-day business decisions based on policies set by the
board. The board has named an executive committee that has
authority to act on its behalf between meetings. The directors
also serve on the boards of all of the other funds in the IDS
MUTUAL FUND GROUP, except for Mr. Dudley, who is a director of all
publicly offered funds.
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
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
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.
Interested directors who are partners in law firms that have
represented IDS subsidiaries
Anne P. Jones
Partner, law firm of Sutherland, Asbill & Brennan.
Aulana L. Peters
Partner, law firm of Gibson, Dunn & Crutcher.
<PAGE>
PAGE 23
Interested directors who are officers and/or employees of IDS
William H. Dudley
Executive vice president, IDS.
David R. Hubers
President and chief executive officer, IDS.
John R. Thomas
Senior vice president, IDS.
Other officer
Leslie L. Ogg
Vice president of all funds in the IDS MUTUAL FUND GROUP and
general counsel and treasurer of the publicly offered funds.
Refer to the SAI for the directors' and officers' biographies.
Investment manager and transfer agent
The fund pay IDS for managing its portfolio, providing
administrative services and serving as transfer agent (handling
shareholder accounts).
Under its Investment Management and Services Agreement, IDS
determines which securities will be purchased, held or sold
(subject to the direction and control of the fund's board of
directors). For these services the fund pays IDS a two-part fee.
The first part is based on the combined average daily net assets of
all funds in the IDS MUTUAL FUND GROUP, as follows:
Net assets of
IDS MUTUAL Annual
FUND GROUP* fee
First $5 billion 0.46%
Each additional Decreasing
$5 billion percentages
More than $50 billion 0.32%
*Includes all funds except the money market funds.
The second part is equal to 0.14% of the fund's average daily net
assets during the fiscal year. This fee may be increased or
decreased by a performance adjustment based on the Lipper Growth
and Income Fund Index. The maximum adjustment is 0.08% of the
fund's average daily net assets on an annual basis.
For the fiscal year ended Nov. 30, 1993, the fund paid IDS a total
investment management fee of 0.55% of its average daily net assets.
Under the Agreement, the fund also pays taxes, brokerage
commissions and nonadvisory expenses.
<PAGE>
PAGE 24
In addition, under a separate Transfer Agency Agreement, IDS
maintains shareholder accounts and records. The fund pays IDS an
annual fee of $15 per shareholder account for this service.
Distributor
The fund sells shares through IDS Financial Services Inc., a wholly
owned subsidiary of IDS, under a Distribution Agreement. Financial
planners representing IDS Financial Services Inc. provide
information to investors about individual investment programs, the
fund and its operations, new account applications, exchange and
redemption requests. The cost of these services is paid partially
by the fund's sales charge.
Portions of sales charges may be paid to securities dealers who
have sold the fund's shares, or to banks and other financial
institutions. The proceeds paid to others range from 0.8% to 4% of
the fund's offering price depending on the monthly sales volume.
To help defray costs not covered by sales charges, including costs
for marketing, sales administration, training, overhead, direct
marketing programs, advertising and related functions, the fund
pays IDS a 12b-1 fee. This fee is paid under a Plan and
Supplemental Agreement of Distribution that follows the terms of
Rule 12b-1 of the Investment Company Act of 1940 (and a Securities
and Exchange Commission order). Under this Agreement, the fund
pays IDS $6 per shareholder account per year. The total 12b-1 fee
paid by the fund for the year ended Nov. 30, 1993 was 0.05% of its
average daily net assets. This fee will not cover all of the costs
incurred by IDS.
Total management and distribution fees and expenses paid by the
fund in the fiscal year ended Nov. 30, 1993 were 0.77% of its
average daily net assets.
Total fees and expenses (excluding taxes and brokerage commissions)
cannot exceed the most restrictive applicable state expense
limitation.
About IDS
General information
The IDS family of companies offers not only mutual funds but also
insurance, annuities, investment certificates and a broad range of
financial management services.
Besides managing investments for all publicly offered funds in the
IDS MUTUAL FUND GROUP, IDS also manages investments for itself and
its subsidiaries, IDS Certificate Company and IDS Life Insurance
Company. Total assets under management on Nov. 30, 1993 were more
than $97 billion.
<PAGE>
PAGE 25
IDS Financial Services Inc. serves individuals and businesses
through its nationwide network of more than 7,500 offices and more
than 175 planners.
Other IDS subsidiaries provide investment management and related
services for pension, profit sharing, employee savings and
endowment funds of businesses and institutions.
IDS is located at IDS Tower 10, Minneapolis, MN 55440-0010. It is
a wholly owned subsidiary of American Express Company, a financial
services company with headquarters at American Express Tower, World
Financial Center, New York, NY 10285. The fund may pay brokerage
commissions to broker-dealer affiliates of American Express and
IDS.
<PAGE>
PAGE 26
STATEMENT OF ADDITIONAL INFORMATION
FOR
IDS EQUITY PLUS FUND
Jan. 28, 1994
This Statement of Additional Information (SAI) is not a prospectus.
It should be read together with the fund's prospectus and the
financial statements contained in the fund's Annual Report which
may be obtained from your IDS personal financial planner or by
writing to IDS Shareholder Service, P.O. Box 534, Minneapolis, MN
55440-0534.
This SAI is dated Jan. 28, 1994, and it is to be used with the
fund's prospectus dated Jan. 28, 1994, and the fund's Annual Report
for the fiscal year ended Nov. 30, 1993.
<PAGE>
PAGE 27
TABLE OF CONTENTS
Goals and Investment Policies......................See Prospectus
Additional Investment Policies................................p. 3
Portfolio Transactions........................................p. 6
Brokerage Commissions Paid to Brokers Affiliated with IDS.....p. 8
Performance Information.......................................p. 9
Valuing Fund Shares...........................................p.10
Investing in the Fund.........................................p.12
Redeeming Shares..............................................p.16
Pay-out Plans.................................................p.17
Exchanges.....................................................p.18
Taxes.........................................................p.18
Agreements....................................................p.19
Directors and Officers........................................p.23
Custodian.....................................................p.26
Independent Auditors..........................................p.26
Financial Statements..............................See Annual Report
Prospectus....................................................p.26
Appendix A: Foreign Currency Transactions....................p.27
Appendix B: Options and Stock Index Futures Contracts........p.32
Appendix C: Stripped Mortgage-Backed Securities..............p.39
Appendix D: Dollar-Cost Averaging............................p.40
<PAGE>
PAGE 28
ADDITIONAL INVESTMENT POLICIES
In addition to the investment goals and policies presented in the
prospectus, the fund has investment policies stated below that will
not be changed unless holders of a majority of the outstanding
shares agree to make the change.
These policies state the fund will not:
'Invest more than 5% of its total assets, at market value, in
securities of any one company, government or political subdivision
thereof, except the limitation will not apply to investments in
securities issued by the U.S. government, its agencies or
instrumentalities, and except that up to 25% of the fund's total
assets may be invested without regard to this
5% limitation.
'Purchase more than 10% of the outstanding voting securities of an
issuer.
'Concentrate in any one industry. According to the present
interpretation by the Securities and Exchange Commission (SEC),
this means no more than 25% of the fund's total assets, based on
current market value at the time of purchase, can be invested in
any one industry.
'Invest more than 5% of its total assets, at cost, in securities of
companies, including any predecessors, that have a record of less
than three years continuous operations.
'Buy or sell real estate, commodities or commodity contracts,
except the fund may enter into stock index futures contracts.
'Buy on margin or sell short, but it may make margin payments in
connection with transactions in stock index futures contracts.
'Invest in a company to control or manage it.
'Pledge or mortgage its assets beyond 15% of the cost of total
assets. If the fund were ever to do so, valuation of the pledged
or mortgaged assets would be based on market values. For purposes
of this restriction, collateral arrangements for margin deposits on
stock index futures contracts are not deemed to be a pledge of
assets.
'Make cash loans. The fund, however, does make investments in debt
securities where the sellers agree to repurchase the securities at
cost plus an agreed-upon interest rate within a specified time.
'Act as an underwriter (sell securities for others). However,
under the securities laws, the fund may be deemed to be an
underwriter when it purchases securities directly from the issuer
and later resells them.
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PAGE 29
'Borrow money or property, except as a temporary measure for
extraordinary or emergency purposes, in an amount not exceeding
one-third of the market value of its total assets (including
borrowings) less liabilities (other than borrowings) immediately
after the borrowing. The fund has not borrowed in the past and has
no present intention to borrow.
'Lend the fund's assets to the fund's directors and officers, to
IDS, or to IDS' directors and officers.
'Purchase securities of an issuer if the directors and officers of
the fund and of IDS Financial Corporation (IDS) hold more than a
certain percentage of the issuer's outstanding securities. The
holdings of all directors and officers of the fund and of IDS who
own more than 0.5% of an issuer's securities are added together,
and if in total they own more than 5%, the fund will not purchase
securities of that issuer.
'Invest in securities of investment companies except by purchase in
the open market where the dealer's or sponsor's profit is the
regular commission. The investment manager may wish to invest in
another investment company if, for example, that is the only way to
invest in a foreign market. If any such investment is ever made,
not more than 10 percent of the fund's net assets, at market, will
be so invested. To the extent the fund were to make such
investments, the shareholder may be subject to duplicate advisory,
administrative and distribution fees.
'Invest in exploration or development programs, such as oil, gas or
mineral programs.
'Lend portfolio securities in excess of 30% of its net assets, at
market value. This policy may not be changed without shareholder
approval. The current policy of the fund's board of directors is
to make these loans, either long- or short-term, to broker-dealers.
In making such loans the fund gets the market price in cash, U.S.
government securities, letters of credit or such other collateral
as may be permitted by regulatory agencies and approved by the
board of directors. If the market price of the loaned securities
goes up, the fund will get additional collateral on a daily basis.
The risks are that the borrower may not provide additional
collateral when required or return the securities when due. During
the existence of the loan, the fund receives cash payments
equivalent to all interest or other distributions paid on the
loaned securities. A loan will not be made unless the investment
manager believes the opportunity for additional income outweighs
the risks.
Unless changed by the board of directors, the fund may:
'Invest no more than 5% of its net assets in warrants. Under one
state's law no more than 2% of the fund's net assets may be
invested in warrants not listed on an exchange.
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PAGE 30
'Invest no more than 10% of its net assets in illiquid securities
and derivative instruments. For purposes of this policy illiquid
securities include some privately placed securities, public
securities and Rule 144A securities that for one reason or another
may no longer have a readily available market, repurchase
agreements with maturities greater than seven days, non-negotiable
fixed-time deposits and over-ther-counter options.
'Invest in Rule 144A securities, which are unregistered securities
offered to qualified institutional buyers, and interest-only and
principal-only fixed mortgage-backed securities (IOs and POs)
issued by the United States government or its agencies and
instrumentalities. In determining the liquidity of Rule 144A
securities, IOs and POs, the investment manager, under guidelines
established by the board of directors, will consider any relevant
factors including the frequency of trades, the number of dealers
willing to purchase or sell the security and the nature of
marketplace trades.
'Invest in commercial paper issued in transactions not involving a
public offering under Section 4(2) of the Securities Act of 1933
(4(2) paper). In determining the liquidity of 4(2) paper, the
investment manager, under guidelines established by the board of
directors, will evaluate relevant factors such as the issuer and
the size and nature of its commercial paper programs, the
willingness and ability of the issuer or dealer to repurchase the
paper, and the nature of the clearance and settlement procedures
for the paper.
'Make contracts to purchase securities for a fixed price at a
future date beyond normal settlement time (when-issued securities
or forward commitments). Under normal market conditions, the fund
does not intend to commit more than 5% of its total assets to these
practices. The fund does not pay for the securities or receive
dividends or interest on them until the contractual settlement
date. The fund will designate cash or liquid high-grade debt
securities at least equal in value to its commitments to purchase
the securities. When-issued securities or forward commitments are
subject to market fluctuations and they may affect the fund's total
assets the same as owned securities.
'Maintain a portion of its assets in cash and cash-equivalent
investments. The cash-equivalent investments the fund may use are
short-term U.S. and Canadian government securities and negotiable
certificates of deposit, non-negotiable fixed-time deposits,
bankers' acceptances and letters of credit of banks or savings and
loan associations having capital, surplus and undivided profits (as
of the date of its most recently published annual financial
statements) in excess of $100 million (or the equivalent in the
instance of a foreign branch of a U.S. bank) at the date of
investment. Any cash-equivalent investments in foreign securities
will be subject to the limitations on foreign investments described
above. The fund also may purchase short-term corporate notes and
obligations rated in the top two classifications by Moody's
<PAGE>
PAGE 31
Investors Service, Inc. or Standard & Poor's Corporation or the
equivalent and may use repurchase agreements with broker-dealers
registered under the Securities Exchange Act of 1934 and with
commercial banks. A risk of a repurchase agreement is that if the
seller seeks the protection of the bankruptcy laws, the fund's
ability to liquidate the security involved could be impaired.
For a discussion about foreign currency transactions, see Appendix
A. For a discussion on options and stock index futures contracts,
see Appendix B. For a discussion on stripped mortgage-backed
securities, see Appendix C.
PORTFOLIO TRANSACTIONS
Subject to policies set by the board of directors, IDS is
authorized to determine, consistent with the fund's investment
goals and policies, which securities will be purchased, held or
sold. In determining where the buy and sell orders are to be
placed, IDS has been directed to use its best efforts to obtain the
best available price and the most favorable execution except where
otherwise authorized by the board of directors. In selecting
broker-dealers to execute transactions, IDS may consider the price
of the security, including commission or mark-up, the size and
difficulty of the order, the reliability, integrity, financial
soundness and general operation and execution capabilities of the
broker, the broker's expertise in particular markets, and research
services provided by the broker.
On occasion, it may be desirable to compensate a broker for
research services or for brokerage services by paying a commission
that might not otherwise be charged or a commission in excess of
the amount another broker might charge. The board of directors has
adopted a policy authorizing IDS to do so to the extent authorized
by law, if IDS determines, in good faith, that such commission is
reasonable in relation to the value of the brokerage or research
services provided by a broker or dealer, viewed either in the light
of that transaction or IDS' overall responsibilities to the funds
in the IDS MUTUAL FUND GROUP.
Research provided by brokers supplements IDS' own research
activities. Such services include economic data on, and analysis
of, U.S. and foreign economies; information on specific industries;
information about specific companies, including earnings estimates;
purchase recommendations for stocks and bonds; portfolio strategy
services; political, economic, business and industry trend
assessments; historical statistical information; market data
services providing information on specific issues and prices; and
technical analysis of various aspects of the securities markets,
including technical charts. Research services may take the form of
written reports, computer software or personal contact by telephone
or at seminars or other meetings. IDS has obtained, and in the
future may obtain, computer hardware from brokers, including but
not limited to personal computers that will be used exclusively for
<PAGE>
PAGE 32
investment decision-making purposes, which include the research,
portfolio management and trading functions and other services to
the extent permitted under an interpretation by the SEC.
When paying a commission that might not otherwise be charged or a
commission in excess of the amount another broker might charge, IDS
must follow procedures authorized by the board of directors. To
date, three procedures have been authorized. One procedure permits
IDS to direct an order to buy or sell a security traded on a
national securities exchange to a specific broker for research
services it has provided. The second procedure permits IDS, in
order to obtain research, to direct an order on an agency basis to
buy or sell a security traded in the over-the-counter market to a
firm that does not make a market in that security. The commission
paid generally includes compensation for research services. The
third procedure permits IDS, in order to obtain research and
brokerage services, to cause the fund to pay a commission in excess
of the amount another broker might have charged. IDS has advised
the fund it is necessary to do business with a number of brokerage
firms on a continuing basis to obtain such services as the handling
of large orders, the willingness of a broker to risk its own money
by taking a position in a security, and the specialized handling of
a particular group of securities that only certain brokers may be
able to offer. As a result of this arrangement, some portfolio
transactions may not be effected at the lowest commission, but IDS
believes it may obtain better overall execution. IDS has assured
the fund that under all three procedures the amount of commission
paid will be reasonable and competitive in relation to the value of
the brokerage services performed or research provided.
All other transactions shall be placed on the basis of obtaining
the best available price and the most favorable execution. In so
doing, if in the professional opinion of the person responsible for
selecting the broker or dealer, several firms can execute the
transaction on the same basis, consideration will be given by such
person to those firms offering research services. Such services
may be used by IDS in providing advice to all the funds in the IDS
MUTUAL FUND GROUP and other accounts advised by IDS, even though it
is not possible to relate the benefits to any particular fund or
account.
Each investment decision made for the fund is made independently
from any decision made for another fund in the IDS MUTUAL FUND
GROUP or other account advised by IDS or any IDS subsidiary. When
the fund buys or sells the same security as another fund or
account, IDS carries out the purchase or sale in a way the fund
agrees in advance is fair. Although sharing in large transactions
may adversely affect the price or volume purchased or sold by the
fund, the fund hopes to gain an overall advantage in execution.
IDS has assured the fund it will continue to seek ways to reduce
brokerage costs.
<PAGE>
PAGE 33
On a periodic basis, IDS makes a comprehensive review of the
broker-dealers and the overall reasonableness of their commissions.
The review evaluates execution, operational efficiency and research
services.
The fund paid total brokerage commissions of $726,019 for the
fiscal year ended Nov. 30, 1993, $537,892 for fiscal year 1992, and
$613,595 for fiscal year 1991. Substantially all firms through
whom transactions were executed provide research services.
No transactions were directed to brokers because of research
services they provided to the fund.
The fund's acquisition during the fiscal year ended Nov. 30, 1993,
of securities of its regular brokers or dealers or of the parent of
those brokers or dealers that derived more than 15% of gross
revenue from securities-related activities is presented below:
Value of Securities
Owned at End of
Name of Issuer Fiscal Year
Merrill Lynch & Co., Inc. $ 9,075,000
Morgan Stanley Group $ 8,875,000
Paine Webber $ 7,321,875
The portfolio turnover rate was 41% in the fiscal year ended
Nov. 30, 1993, and 42% in fiscal year 1992.
BROKERAGE COMMISSIONS PAID TO BROKERS AFFILIATED WITH IDS
Affiliates of American Express Company (American Express) (of which
IDS is a wholly owned subsidiary) may engage in brokerage and other
securities transactions on behalf of the fund according to
procedures adopted by the fund's board of directors and to the
extent consistent with applicable provisions of the federal
securities laws. IDS will use an American Express affiliate only
if (i) IDS determines that the fund will receive prices and
executions at least as favorable as those offered by qualified
independent brokers performing similar brokerage and other services
for the fund and (ii) the affiliate charges the fund commission
rates consistent with those the affiliate charges comparable
unaffiliated customers in similar transactions and if such use is
consistent with terms of the Investment Management and Services
Agreement.
<PAGE>
PAGE 34
Information about brokerage commissions paid by the fund for the
last three fiscal years to brokers affiliated with IDS is contained
in the following table:
<TABLE><CAPTION>
For the Fiscal Year Ended Nov. 30,
1993 1992 1991
Aggregate Percent of Aggregate Aggregate
Dollar Aggregate Dollar Dollar Dollar
Amount of Percent of Amount of Amount of Amount of
Nature Commissions Aggregate Transactions Commissions Commissions
of Paid to Brokerage Involving Payment Paid to Paid to
Broker Affiliation Broker Commissions of Commissions Broker Broker
<S> <C> <C> <C> <C> <C> <C>
American (1) $135,868 18.71% 25.36% $77,888 $40,854
Enterprise
Investment
Services Inc.
Shearson (2) 8,375 1.15 1.52 16,950 80,830
Lehman
Brothers Inc.
(1) Wholly owned subsidiary of IDS.
(2) Under common control with IDS as a subsidiary of American
Express until July 30, 1993.
</TABLE>
PERFORMANCE INFORMATION
The fund may quote various performance figures to illustrate past
performance. Average annual total return and current yield
quotations used by the fund are based on standardized methods of
computing performance as required by the SEC. An explanation of
these and any other methods used by the fund to compute performance
follows below.
Average annual total return
The fund may calculate average annual total return for certain
periods by finding the average annual compounded rates of return
over the period that would equate the initial amount invested to
the ending redeemable value, according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1,000
payment, made at the beginning of a period, at the
end of the period (or fractional portion thereof)
<PAGE>
PAGE 35
Aggregate total return
The fund may calculate aggregate total return for certain periods
representing the cumulative change in the value of an investment in
the fund over a specified period of time according to the following
formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000
ERV = ending redeemable value of a hypothetical $1,000
payment, made at the beginning of a period, at the
end of the period (or fractional portion thereof)
In its sales material and other communications, the fund may quote,
compare or refer to rankings, yields or returns as published by
independent statistical services or publishers and publications
such as The Bank Rate Monitor National Index, Barron's, Business
Week, Donoghue's Money Market Fund Report, Financial Services Week,
Financial Times, Financial World, Forbes, Fortune, Global Investor,
Institutional Investor, Investor's Daily, Kiplinger's Personal
Finance, Lipper Analytical Services, Money, Mutual Fund Forecaster,
Newsweek, The New York Times, Personal Investor, Stanger Report,
Sylvia Porter's Personal Finance, USA Today, U.S. News and World
Report, The Wall Street Journal and Wiesenberger Investment
Companies Service.
VALUING FUND SHARES
The value of an individual share is determined by using the net
asset value before shareholder transactions for the day. On
Dec. 1, 1993, the first business day following the end of the
fiscal year, the computation looked like this:
<TABLE><CAPTION>
Net assets before Shares outstanding Net asset value
shareholder transactions at end of previous day of one share
<C> <S> <C> <S> <C>
$621,187,177 divided by 51,294,444 equals $12.11
</TABLE>
In determining net assets before shareholder transactions, the
fund's portfolio securities are valued as follows as of the close
of business of the New York Stock Exchange:
'Securities, except bonds other than convertibles, traded on a
securities exchange for which a last-quoted sales price is readily
available are valued at the last-quoted sales price on the exchange
where such security is primarily traded.
'Securities traded on a securities exchange for which a last-quoted
sales price is not readily available are valued at the mean of the
closing bid and asked prices, looking first to the bid and asked
prices on the exchange where the security is primarily traded and,
if none exist, to the over-the-counter market.
<PAGE>
PAGE 36
'Securities included in the NASDAQ National Market System are
valued at the last-quoted sales price in this market.
'Securities included in the NASDAQ National Market System for which
a last-quoted sales price is not readily available, and other
securities traded over-the-counter but not included in the NASDAQ
National Market System are valued at the mean of the closing bid
and asked prices.
'Futures and options traded on major exchanges are valued at the
last-quoted sales price on their primary exchange.
'Foreign securities traded outside the United States are generally
valued as of the time their trading is complete, which is usually
different from the close of the New York Stock Exchange. Foreign
securities quoted in foreign currencies are translated into U.S.
dollars at the current rate of exchange. Occasionally, events
affecting the value of such securities may occur between such times
and the close of the New York Stock Exchange that will not be
reflected in the computation of the fund's net asset value. If
events materially affecting the value of such securities occur
during such period, these securities will be valued at their fair
value according to procedures decided upon in good faith by the
fund's board of directors.
'Short-term securities maturing more than 60 days from the
valuation date are valued at the readily available market price or
approximate market value based on current interest rates. Short-
term securities maturing in 60 days or less that originally had
maturities of more than 60 days at acquisition date are valued at
amortized cost using the market value on the 61st day before
maturity. Short-term securities maturing in 60 days or less at
acquisition date are valued at amortized cost. Amortized cost is
an approximation of market value determined by systematically
increasing the carrying value of a security if acquired at a
discount, or reducing the carrying value if acquired at a premium,
so that the carrying value is equal to maturity value on the
maturity date.
'Securities without a readily available market price, bonds other
than convertibles and other assets are valued at fair value as
determined in good faith by the board of directors. The board of
directors is responsible for selecting methods it believes provide
fair value. When possible, bonds are valued by a pricing service
independent from the fund. If a valuation of a bond is not
available from a pricing service, the bond will be valued by a
dealer knowledgeable about the bond if such a dealer is available.
The New York Stock Exchange, IDS and the fund will be closed on the
following holidays: New Year's Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day.
<PAGE>
PAGE 37
INVESTING IN THE FUND
The minimum purchase for directors, officers and employees of the
fund or IDS and IDS financial planners is $1000 (except payroll
deduction plans), with a minimum additional purchase of $25.
Systematic Investment Programs
After you make your initial investment of $2,000 or more, you can
arrange to make additional payments of $100 or more on a regular
basis. These minimums do not apply to all systematic investment
programs. You decide how often to make payments - monthly,
quarterly or semiannually. You are not obligated to make any
payments. You can omit payments, or discontinue the investment
program altogether. The fund also can change the program or end it
at any time. If there is no obligation, why do it? Putting money
aside is an important part of financial planning. With a
systematic investment program, you have a goal to work for.
How does this work? When you send in your payment, your money is
invested at the net asset value. Each purchase is a separate
transaction. After each purchase your new shares will be added to
your account. Shares bought through these programs are exactly the
same as any other fund shares. They can be bought and sold at any
time. A systematic investment program is not an option or an
absolute right to buy shares.
For a discussion on dollar-cost averaging see appendix D.
Sales Charge
Shares of the fund are sold at the public offering price determined
at the close of business on the day an application is accepted.
The public offering price is the net asset value of one share plus
a sales charge. The public offering price for an investment of
less than $50,000, made Dec. 1, 1993, was determined by dividing
the net asset value of one share, $12.11, by 0.95 (1.00-0.05 for a
maximum 5% sales charge) for a public offering price of $12.75.
The sales charge is paid to IDS Financial Services Inc. by the
person buying the shares.
<PAGE>
PAGE 38
Calculation of the Sales Charge
Sales charges are determined as follows:
Within each increment,
sales charge as a
percentage of:
Public Net
Amount of Investment Offering Price Amount Invested
First $ 50,000 5.0% 5.26%
Next 50,000 4.5 4.71
Next 150,000 4.0 4.17
Next 250,000 3.0 3.09
Next 500,000 2.0 2.04
Next 2,000,000 1.0 1.01
More than 3,000,000 0.5 0.50
Sales charges on an investment greater than $50,000 are calculated
for each increment separately and then totaled. The resulting
total sales charge, expressed as a percentage of the public
offering price and of the net amount invested, will vary depending
on the proportion of the investment at different sales charge
levels.
For example, compare an investment of $60,000 with an investment of
$85,000. The $60,000 investment is composed of $50,000 that incurs
a sales charge of $2,500 (5.0% x $50,000) and $10,000 that incurs a
sales charge of $450 (4.5% x $10,000). The total sales charge of
$2,950 is 4.92% of the public offering price and 5.17% of the net
amount invested.
In the case of the $85,000 investment, the first $50,000 also
incurs a sales charge of $2,500 (5.0% x $50,000) and $35,000 incurs
a sales charge of $1,575 (4.5% x $35,000). The total sales charge
of $4,075 is 4.79% of the public offering price and 5.04% of the
net amount invested.
The following table shows the range of sales charges as a
percentage of the public offering price and of the net amount
invested on total investments at each applicable level.
<TABLE><CAPTION>
On total investment, sales
charge as a percentage of
Public Net
Offering Price Amount Invested
Amount of Investment ranges from:
<S> <C> <C>
First $ 50,000 5.00% 5.26%
More than 50,000 to 100,000 5.00-4.75 5.26-4.99
More than 100,000 to 250,000 4.75-4.30 4.99-4.49
More than 250,000 to 500,000 4.30-3.65 4.49-3.79
More than 500,000 to 1,000,000 3.65-2.83 3.79-2.91
More than 1,000,000 to 3,000,000 2.83-1.61 2.91-1.63
More than 3,000,000 1.61-0.50 1.63-0.50
</TABLE>
<PAGE>
PAGE 39
The initial sales charge is waived for certain qualified plans that
meet the requirements set forth in the prospectus. Participants in
those qualified plans who redeem shares in circumstances unrelated
to death, disability, retirement, attaining age 59 1/2, loans or
hardship withdrawals may be subject to a deferred sales charge.
The deferred sales charge varies depending on the number of
participants in the qualified plan and total plan assets as
follows:
Deferred Sales Charge
Number of Participants
Total Plan Assets 1-199 200-499 500 or more
Less than $1 million 4% 2% 0%
$1 million but less
than $3 million 2 2 0
$3 million or more 0 0 0
___________________________________________________________________
Reducing the Sales Charge
Sales charges are based on the total amount of your investments in
the fund. The amount of all prior investments plus any new
purchase is referred to as your "total amount invested." For
example, suppose you have made an investment of $20,000 and later
decide to invest $40,000 more. Your total amount invested would be
$60,000. As a result, $10,000 of your $40,000 investment qualifies
for the lower 4.5% sales charge that applies to investments of more
than $50,000 to $100,000.
The total amount invested includes any shares held in the fund in
the name of a member of your immediate family (spouse and unmarried
children under 21). For instance, if your spouse already has
invested $20,000 and you want to invest $40,000, your total amount
invested will be $60,000 and therefore you will pay the lower
charge of 4.5% on $10,000 of the $40,000.
Until a spouse remarries, the sales charge is waived for spouses
and unmarried children under 21 of deceased trustees, directors,
officers or employees of the fund or IDS or its subsidiaries and
deceased planners.
The total amount invested also includes any investment you or your
immediate family already have in the other publicly offered funds
in the IDS MUTUAL FUND GROUP where the investment is subject to a
sales charge. For example, suppose you already have an investment
of $25,000 in IDS Growth Fund and $5,000 in this fund. If you
<PAGE>
PAGE 40
invest $40,000 more in this fund, your total amount invested in the
funds will be $70,000 and therefore $20,000 of your $40,000
investment will incur a 4.5% sales charge.
Finally, Individual Retirement Account (IRA) purchases, or other
employee benefit plan purchases made through a payroll deduction
plan or through a plan sponsored by an employer, association of
employers, employee organization or other similar entity, may be
added together to reduce sales charges for shares purchased through
that plan.
Systematic Investment Programs
After you make your initial investment of $2,000 or more, you can
arrange to make additional payments of $100 or more on a regular
basis. These minimums do not apply to all systematic investment
programs. You decide how often to make payments - monthly,
quarterly or semiannually. You are not obligated to make any
payments. You can omit payments or discontinue the investment
program altogether. The fund also can change the program or end it
at any time. If there is no obligation, why do it? Putting money
aside is an important part of financial planning. With a
systematic investment program, you have a goal to work for.
How does this work? When you send in your payment, your money is
invested at the public offering price. Your regular investment
amount will purchase more shares when the net asset value per share
decreases, and fewer shares when the net asset value per share
increases. Each purchase is a separate transaction. After each
purchase your new shares will be added to your account. Shares
bought through these programs are exactly the same as any other
fund shares. They can be bought and sold at any time. A
systematic investment program is not an option or an absolute right
to buy shares.
The systematic investment program itself cannot ensure a profit,
nor can it protect against a loss in a declining market. If you
decide to discontinue the program and redeem your shares when their
net asset value is less than what you paid for them, you will incur
a loss.
For a discussion on dollar-cost averaging, see Appendix D.
Automatic Directed Dividends
Dividends, including capital gain distributions, paid by another
fund in the IDS MUTUAL FUND GROUP subject to a sales charge, may be
used to automatically purchase shares of this fund without paying a
sales charge. Dividends may be directed to existing accounts only.
Dividends declared by a fund are exchanged to this fund the
following day. Dividends can be exchanged into one fund but cannot
be split to make purchases in two or more funds. Automatic
directed dividends are available between accounts of any ownership
except:
<PAGE>
PAGE 41
'Between a non-custodial account and an IRA, or 401(k) plan account
or other qualified retirement account of which IDS Bank & Trust
acts as custodian;
'Between two IDS Bank & Trust custodial accounts with different
owners (for example, you may not exchange dividends from your IRA
to the IRA of your spouse);
'Between different kinds of custodial accounts with the same
ownership (for example, you may not exchange dividends from your
IRA to your 401(k) plan account, although you may exchange
dividends from one IRA to another IRA).
Moreover, dividends may be directed from accounts established under
the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to
Minors Act (UTMA) only into other UGMA or UTMA accounts with
identical ownership.
Each fund has a different investment goal described in its
prospectus along with other information, including fees and expense
ratios. Before exchanging dividends into another fund, you should
read its prospectus. You will receive a confirmation that the
automatic directed dividend service has been set up for your
account.
REDEEMING SHARES
You have a right to redeem your shares at any time. For an
explanation of redemption procedures, please see the prospectus.
During an emergency, the board of directors can suspend the
computation of net asset value, stop accepting payments for
purchase of shares or suspend the duty of the fund to redeem shares
for more than seven days. Such emergency situations would occur
if:
'The New York Stock Exchange closes for reasons other than the
usual weekend and holiday closings or trading on the Exchange is
restricted, or
'Disposal of the fund's securities is not reasonably practicable or
it is not reasonably practicable for the fund to determine the fair
value of its net assets, or
'The SEC, under the provisions of the Investment Company Act of
1940, as amended, declares a period of emergency to exist.
Should the fund stop selling shares, the directors may make a
deduction from the value of the assets held by the fund to cover
the cost of future liquidations of the assets so as to distribute
fairly these costs among all shareholders.
<PAGE>
PAGE 42
PAY-OUT PLANS
You can use any of several pay-out plans to redeem your investment
in regular installments at no extra cost. While the plans differ
on how the pay-out is figured, they all are based on the redemption
of your investment. Net investment income dividends and any
capital gain distributions will automatically be reinvested, unless
you elect to receive them in cash. If you are redeeming a tax-
qualified plan account for which IDS Bank & Trust acts as
custodian, you can elect to receive your dividends and other
distributions in cash when permitted by law. If you redeem an IRA
or a qualified retirement account, certain restrictions, federal
tax penalties and special federal income tax reporting requirements
may apply. You should consult your tax adviser about this complex
area of the tax law.
IDS normally will not accept applications for a systematic
investment in any fund in the IDS MUTUAL FUND GROUP subject to a
sales charge while a pay-out plan for any of those funds is in
effect. Occasional investments, however, may be accepted.
To start any of these plans, please submit an authorization form
supplied by IDS Shareholder Service. For a copy, write or call IDS
Shareholder Service, P.O. Box 534, Minneapolis, MN 55440-0534, 612-
671-3733. Your authorization must be received in the Minneapolis
headquarters at least five days before the date you want your
payments to begin. The initial payment must be at least $50.
Payments will be made on a monthly, bimonthly, quarterly,
semiannual or annual basis. Your choice is effective until you
change or cancel it.
The following pay-out plans are designed to take care of the needs
of most shareholders in a way IDS can handle efficiently and at a
reasonable cost. If you need a more irregular schedule of
payments, it may be necessary for you to make a series of
individual redemptions, in which case you will have to send in a
separate redemption request for each pay-out. The fund reserves
the right to change or stop any pay-out plan and to stop making
such plans available.
Plan #1: Pay-out for a fixed period of time
If you choose this plan, a varying number of shares will be
redeemed at net asset value at regular intervals during the time
period you choose. This plan is designed to end in complete re-
demption of all shares in your account by the end of the fixed
period.
Plan #2: Redemption of a fixed number of shares
If you choose this plan, a fixed number of shares will be redeemed
at net asset value for each payment and that amount will be sent to
you. The length of time these payments continue is based on the
number of shares in your account.
<PAGE>
PAGE 43
Plan #3: Redemption of a fixed dollar amount
If you decide on a fixed dollar amount, whatever number of shares
is necessary to make the payment will be redeemed in regular
installments until your account is closed.
Plan #4: Redemption of a percentage of net asset value
Payments are made based on a fixed percentage of the net asset
value of the shares in the account computed on the day of each
payment. Percentages range from 0.25% to 0.75%. For example, if
you are on this plan and arrange to take 0.5% each month, you will
get $50 if the value of your account is $10,000 on the payment
date.
EXCHANGES
If you buy shares in the fund and then exchange into another fund,
it is considered a sale and subsequent purchase of shares. Under
the tax laws, if this exchange is done within 91 days, any sales
charge waived on a subsequent purchase of shares applies to the new
shares acquired in the exchange. Therefore, you cannot create a
tax loss or reduce a tax gain attributable to the sales charge when
exchanging shares within 91 days.
Retirement Accounts
If you have a nonqualified investment in the fund and you wish to
move part or all of those shares to an IRA or qualified retirement
account in this fund, you can do so without paying a sales charge.
However, this type of exchange is considered a sale of shares and
may result in a gain or loss for tax purposes. In addition, this
type of exchange may result in an excess contribution under IRA or
qualified plan regulations if the amount exchanged plus the amount
of the initial sales charge applied to the amount exchanged exceeds
annual contribution limitations. For example: If you were to
exchange $2,000 in shares from a nonqualified account to an IRA
without considering the 5% ($100) initial sales charge applicable
to that $2,000, you may be deemed to have exceeded current IRA
annual contribution limitations. You should consult your tax
adviser for further details about this complex subject.
TAXES
Net investment income dividends received should be treated as
dividend income for federal income tax purposes. Corporate
shareholders are generally entitled to a deduction equal to 70% of
that portion of the fund's dividend that is attributable to
dividends the fund received from domestic (U.S.) securities. For
the fiscal year ended Nov. 30, 1993, 79.28% of the fund's net
investment income dividends qualified for the corporate deduction.
<PAGE>
PAGE 44
Capital gain distributions received by individual and corporate
shareholders, if any, should be treated as long-term capital gains
regardless of how long they owned their shares. Short-term capital
gains earned by the fund are paid to shareholders as part of their
ordinary income dividend and are taxable.
Under federal tax law and an election made by the fund under
federal tax regulations, by the end of a calendar year the fund
must declare and pay dividends representing 98% of ordinary income
for that calendar year and 98% of net capital gains (both long-term
and short-term) for the 12-month period ending Oct. 31 of that
calendar year. The fund is subject to an excise tax equal to 4% of
the excess, if any, of the amount required to be distributed over
the amount actually distributed. The fund intends to comply with
federal tax law and avoid any excise tax.
The fund may be subject to U.S. taxes resulting from holdings in a
passive foreign investment company (PFIC). A foreign corporation
is a PFIC when 75% or more of its gross income for the taxable year
is passive income or if 50% or more of the average value of its
assets consists of assets that produce or could produce passive
income. The fund has no current intention to invest in PFICs.
This is a brief summary that relates to federal income taxation
only. Shareholders should consult their tax adviser as to the
application of federal, state and local income tax laws to fund
distributions.
AGREEMENTS
Investment Management and Services Agreement
The fund has an Investment Management and Services Agreement with
IDS. For its services, IDS is paid a fee composed of an asset
charge in two parts. The first part, the group asset charge, is
based on the combined daily net assets of all funds in the IDS
MUTUAL FUND GROUP, except the money market funds, including any new
fund that may be organized in the future. The daily rate of the
group asset charge is based upon the following schedule:
<PAGE>
PAGE 45
Group Asset Charge
Group assets Annual rate at Effective
(billions) each asset level annual rate
First $5 0.460% 0.460%
Next $5 0.440 0.450
Next $5 0.420 0.440
Next $5 0.400 0.430
Next $5 0.390 0.422
Next $5 0.380 0.415
Next $5 0.360 0.407
Next $5 0.350 0.400
Next $5 0.340 0.393
Next $5 0.330 0.387
Over $50 0.320
The aggregate net assets of all non-money market funds in the IDS
MUTUAL FUND GROUP were $41,214,914,729 on Nov. 30, 1993, and the
daily rate applied to the fund's assets was equal to approximately
0.40% on an annual basis.
The second part of the asset charge is calculated at an annual rate
of 0.14% and is based on the unique characteristics of the fund,
including the fund's use of services provided by IDS in the areas
of investment research, portfolio management, investment services
and fund accounting. The total fee is calculated for each calendar
day on the basis of net assets as of the close of business two
business days prior to the day for which the calculation is made.
Before the fee based on the asset charge is paid, it is adjusted
for investment performance. The adjustment, determined monthly,
will be calculated using the percentage difference between the
change in the net asset value of one share of the fund's capital
stock and the change in the Lipper Growth and Income Fund Index
(Index). The performance of one fund share is measured by
computing the percentage difference between the opening and closing
net asset value of one share of the fund, as of the last business
day of the period selected for comparison, adjusted for dividend or
capital gain distributions which are treated as reinvested at the
end of the month during which the distribution was made. The
performance of the Index for the same period is established by
measuring the percentage difference between the beginning and
ending Index for the comparison period. The performance is
adjusted for dividend or capital gain distributions (on the
securities which comprise the Index), which are treated as
reinvested at the end of the month during which the distribution
was made. One percent will be subtracted from the calculation to
help assure that incentive adjustments are attributable to IDS'
management abilities rather than random fluctuations and the result
multiplied by 0.01%. That number will be multiplied times the
fund's average net assets for the comparison period and then
divided by the number of months in the comparison period to
determine the monthly adjustment.
<PAGE>
PAGE 46
Where the fund's performance exceeds that of the Index, the base
fee will be increased. Where the performance of the Index exceeds
the performance of the fund, the base fee will be decreased. The
maximum monthly increase or decrease will be 0.08% of the fund's
average net assets on an annual basis.
The 12 month comparison period rolls over with each succeeding
month, so that it always equals 12 months, ending with the month
for which the performance adjustment is being computed. The
adjustment increased (decreased) the fee by $52,030 for the fiscal
year ended Nov. 30, 1993.
The management fee is paid monthly. The total amount paid was
$3,161,075 for the fiscal year ended Nov. 30, 1993, $2,429,807 for
fiscal year 1992, and $2,100,433 for fiscal year 1991.
Under the current Agreement, the fund also pays taxes, brokerage
commissions and nonadvisory expenses, that include custodian fees;
audit and certain legal fees; fidelity bond premiums; registration
fees for shares; fund office expenses; consultants' fees;
compensation of directors, officers and employees; corporate filing
fees; Investment Company Institute dues; organizational expenses;
expenses incurred in connection with lending portfolio securities
of the fund; and expenses properly payable by the fund, approved by
the board of directors. The fund paid nonadvisory expenses of
$346,851 for the fiscal year ended Nov. 30, 1993, $195,591 for
fiscal year 1992, and $256,127 for fiscal year 1991.
Transfer Agency Agreement
The fund has a Transfer Agency Agreement with IDS. This agreement
governs IDS' responsibility for administering and/or performing
transfer agent functions, for acting as service agent in connection
with dividend and distribution functions and for performing
shareholder account administration agent functions in connection
with the issuance, exchange and redemption or repurchase of the
fund's shares. Under the agreement, IDS will earn a fee from the
fund determined by multiplying the number of shareholder accounts
at the end of the day by a rate of $15 per year and dividing by the
number of days in the year. The fees paid to IDS may be changed
from time to time upon agreement of the parties without shareholder
approval. The fund paid fees of $642,140 for the fiscal year ended
Nov. 30, 1993.
Distribution Agreement
Under a Distribution Agreement, sales charges deducted for
distributing fund shares are paid to IDS Financial Services Inc.
daily. These charges amounted to $3,132,061 for the fiscal year
ended Nov. 30, 1993. After paying commissions to personal
financial planners, and other expenses, the amount retained was
$1,061,992. The amounts were $825,713 and $234,291 for fiscal year
1992, and $304,937 and $99,032 for fiscal year 1991.
<PAGE>
PAGE 47
Additional information about commissions and compensation for the
fiscal year ended Nov. 30, 1993, is contained in the following
table:
(1) (2) (3) (4) (5)
Net Compensation
Name of Underwriting on Redemption
Principal Discounts and and Brokerage Other
Underwriter Commissions Repurchases Commissions Compensation
IDS None None $135,868* $258,911**
IDS Financial
Services Inc. $3,132,061 None None None
*For further information see "Brokerage Commissions Paid to Brokers
Affiliated with IDS."
**Distribution fees paid pursuant to the Plan and Supplemental
Agreement of Distribution.
Plan and Supplemental Agreement of Distribution
To help IDS defray the cost of distribution and servicing, not
covered by the sales charges received under the Distribution
Agreement, the fund and IDS entered into a Plan and Supplemental
Agreement of Distribution (Plan). These costs cover almost all
aspects of distributing the fund shares except compensation to the
sales force. A substantial portion of the costs are not
specifically identified to any one fund in the IDS MUTUAL FUND
GROUP. Under the Plan, IDS is paid a fee determined by multiplying
the number of shareholder accounts at the end of each day by a rate
of $6 per year and dividing by the number of days in the year.
The Plan must be approved annually by the directors, including a
majority of the disinterested directors, if it is to continue for
more than a year. At least quarterly, the directors must review
written reports concerning the amounts expended under the Plan and
the purposes for which such expenditures were made. The Plan and
any agreement related to it may be terminated at any time by vote
of a majority of directors who are not interested persons of the
fund and have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan, or
by vote of a majority of the outstanding voting securities of the
fund or by IDS. The Plan (or any agreement related to it) shall
terminate in the event of its assignment, as that term is defined
in the Investment Company Act of 1940, as amended. The Plan may
not be amended to increase the amount to be spent for distribution
without shareholder approval, and all material amendments to the
Plan must be approved by a majority of the directors, including a
majority of the directors who are not interested persons of the
fund and who do not have a financial interest in the operation of
the Plan or any agreement related to it. The selection and
nomination of such disinterested directors is the responsibility of
<PAGE>
PAGE 48
such disinterested directors. No interested person of the fund,
and no director who is not an interested person, has any direct or
indirect financial interest in the operation of the Plan or any
related agreement.
Total fees and nonadvisory expenses cannot exceed the most
restrictive applicable state limitation. Currently, the most
restrictive applicable state expense limitation, subject to
exclusion of certain expenses, is 2.5% of the first $30 million of
the fund's average daily net assets, 2% of the next $70 million and
1.5% of average daily net assets over $100 million, on an annual
basis. At the end of each month, if the fees and expenses of the
fund exceed this limitation for the fund's fiscal year in progress,
IDS will assume all expenses in excess of the limitation. IDS then
may bill the fund for such expenses in subsequent months up to the
end of that fiscal year, but not after that date. No interest
charges are assessed by IDS for expenses it assumes.
DIRECTORS AND OFFICERS
The following is a list of the fund's directors who, except for Mr.
Dudley, also are directors of all other funds in the IDS MUTUAL
FUND GROUP. Mr. Dudley is a director of all publicly offered
funds. All shares have cumulative voting rights when voting on the
election of directors.
William H. Dudley**
2900 IDS Tower
Minneapolis, MN
Executive vice president and director of IDS.
Robert F. Froehlke+
901 S. Marquette Ave.
Minneapolis, MN
Former president of all funds in the IDS MUTUAL FUND GROUP.
Director, the ICI Mutual Insurance Co., Institute for Defense
Analyses, Marshall Erdman and Associates, Inc. (architectual
engineering) and Public Oversight Board of the American Institute
of Certified Public Accountants.
David R. Hubers**
2900 IDS Tower
Minneapolis, MN
President, chief executive officer and director of IDS.
Previously, senior vice president, finance and chief financial
officer of IDS.
<PAGE>
PAGE 49
Anne P. Jones***
Sutherland, Asbill & Brennan
1275 Pennsylvania Ave., N.W.
Washington, D.C.
Partner, law firm of Sutherland, Asbill & Brennan. Director,
Motorola, Inc. and C-Cor Electronics, Inc.
Donald M. Kendall
PepsiCo, Inc.
Purchase, NY
Former chairman and chief executive officer, PepsiCo, Inc.
Director, Atlantic Richfield Company.
Melvin R. Laird
Reader's Digest Association, Inc.
1730 Rhode Island Ave., N.W.
Washington, D.C.
Senior counsellor for national and international affairs, The
Reader's Digest Association, Inc. Chairman of the board, COMSAT
Corporation, former nine-term congressman, secretary of defense and
presidential counsellor. Director, Martin Marietta Corp.,
Metropolitan Life Insurance Co., The Reader's Digest Association,
Inc., Science Applications International Corp., Wallace Reader's
Digest funds and Public Oversight Board (SEC Practice Section,
American Institute of Certified Public Accountants).
Lewis W. Lehr'
3050 Minnesota World Trade Center
30 E. Seventh St.
St. Paul, MN
Former chairman of the board and chief executive officer, Minnesota
Mining and Manufacturing Company (3M). Director, Jack Eckerd
Corporation (drugstores). Advisory Director, Peregrine Inc.
(microelectronics).
William R. Pearce+*
901 S. Marquette Ave.
Minneapolis, MN
President of all funds in the IDS MUTUAL FUND GROUP since June
1993. Former vice chairman of the board, Cargill, Incorporated
(commodity merchants and processors).
<PAGE>
PAGE 50
Aulana L. Peters'***
Gibson, Dunn & Crutcher
333 S. Grand Ave.
Los Angeles, CA
Partner, law firm of Gibson, Dunn & Crutcher from January 1980 to
May 1984 and since August 1988. Commissioner, Securities and
Exchange Commission from June 1984 to July 1988. Director,
American Institute of CPA's (accounting), Minnesota Mining and
Manufacturing Company (3M), Mobil Corporation (energy), New York
Stock Exchange and Northrop Corporation (defense).
Edson W. Spencer+'
840 TCF Tower
Minneapolis, MN
President, Spencer Associates Inc. (consulting). Chairman of the
board, Mayo Foundation (healthcare). Former chairman of the board
and chief executive officer, Honeywell, Inc. Director, Boise
Cascade Corporation (forest products) and CBS Inc. Member of
International Advisory Councils, Robert Bosch (Germany) and NEC
(Japan).
John R. Thomas+**
2900 IDS Tower
Minneapolis, MN
Senior vice president and director of IDS.
Wheelock Whitney+
1900 Foshay Tower
821 Marquette Ave.
Minneapolis, MN
Chairman, Whitney Management Company (manages family assets).
+ Member of executive committee.
' Member of joint audit committee.
* Interested person by reason of being an officer and employee of
the fund.
**Interested person by reason of being an officer, director,
employee and/or shareholder of IDS or American Express.
***Interested person by reason of being a partner in a law firm
that has represented IDS or its subsidiaries.
The board also has appointed officers who are responsible for day-
to-day business decisions based on policies it has established.
Besides Mr. Pearce, who is president, the fund's other officer is:
<PAGE>
PAGE 51
Leslie L. Ogg
901 S. Marquette Ave.
Minneapolis, MN
Vice president of all funds in the IDS MUTUAL FUND GROUP and
general counsel and treasurer of the publicly offered funds.
On Nov. 30, 1993, the fund's directors and officers as a group
owned less than 1% of the outstanding shares. During the fiscal
year ended Nov. 30, 1993, no director or officer earned more than
$60,000 from this fund. All directors and officers as a group
earned $38,310, including $12,361 of retirement plan expense, from
this fund.
CUSTODIAN
The fund's securities and cash are held by IDS Bank & Trust, 1200
Northstar Center West, 625 Marquette Ave., Minneapolis, MN 55402-
2307, through a custodian agreement. The custodian is permitted to
deposit some or all of its securities in central depository systems
as allowed by federal law.
The custodian has entered into a sub-custodian arrangement with the
Morgan Stanley Trust Company (Morgan Stanley), One Pierrepont
Plaza, 8th Floor, Brooklyn, NY 11201-2775. As part of this
arrangement, portfolio securities purchased outside the United
States are maintained in the custody of various foreign branches of
Morgan Stanley or in such other financial institutions as may be
permitted by law and by the fund's sub-custodian agreement.
INDEPENDENT AUDITORS
The fund's financial statements contained in its Annual Report to
shareholders, for the fiscal year ended Nov. 30, 1993, were audited
by independent auditors, KPMG Peat Marwick, 4200 Norwest Center,
90 S. Seventh St., Minneapolis, MN 55402-3900. The independent
auditors also provide other accounting and tax-related services as
requested by the fund.
FINANCIAL STATEMENTS
The Independent Auditors' Report and the Financial Statements,
including Notes to the Financial Statements and the Schedule of
Investments in Securities, contained in the 1993 Annual Report to
IDS Equity Plus Fund shareholders, pursuant to Section 30(d) of the
Investment Company Act of 1940, as amended, are hereby incorporated
in this SAI by reference. No other portion of the Annual Report,
however, is incorporated by reference.
PROSPECTUS
The prospectus dated Jan. 28, 1994, is hereby incorporated in this
SAI by reference.
<PAGE>
PAGE 52
APPENDIX A
FOREIGN CURRENCY TRANSACTIONS
Since investments in foreign countries usually involve currencies
of foreign countries, and since the fund may hold cash and cash-
equivalent investments in foreign currencies, the value of the
fund's assets as measured in U.S. dollars may be affected favorably
or unfavorably by changes in currency exchange rates and exchange
control regulations. Also, the fund may incur costs in connection
with conversions between various currencies.
Spot Rates and Forward Contracts. The fund conducts its foreign
currency exchange transactions either at the spot (cash) rate
prevailing in the foreign currency exchange market or by entering
into forward currency exchange contracts (forward contracts) as a
hedge against fluctuations in future foreign exchange rates. A
forward contract involves an obligation to buy or sell a specific
currency at a future date, which may be any fixed number of days
from the contract date, at a price set at the time of the contract.
These contracts are traded in the interbank market conducted
directly between currency traders (usually large commercial banks)
and their customers. A forward contract generally has no deposit
requirements. No commissions are charged at any stage for trades.
The fund may enter into forward contracts to settle a security
transaction or handle dividend and interest collection. When the
fund enters into a contract for the purchase or sale of a security
denominated in a foreign currency or has been notified of a
dividend or interest payment, it may desire to lock in the price of
the security or the amount of the payment in dollars. By entering
into a forward contract, the fund will be able to protect itself
against a possible loss resulting from an adverse change in the
relationship between different currencies from the date the
security is purchased or sold to the date on which payment is made
or received or when the dividend or interest is actually received.
The fund also may enter into forward contracts when management of
the fund believes the currency of a particular foreign country may
suffer a substantial decline against another currency. It may
enter into a forward contract to sell, for a fixed amount of
dollars, the amount of foreign currency approximating the value of
some or all of the fund's portfolio securities denominated in such
foreign currency. The precise matching of forward contract amounts
and the value of securities involved generally will not be possible
since the future value of such securities in foreign currencies
more than likely will change between the date the forward contract
is entered into and the date it matures. The projection of short-
term currency market movements is extremely difficult and
successful execution of a short-term hedging strategy is highly
uncertain. The fund will not enter into such forward contracts or
maintain a net exposure to such contracts when consummating the
contracts would obligate the fund to deliver an amount of foreign
currency in excess of the value of the fund's portfolio securities
or other assets denominated in that currency.<PAGE>
PAGE 53
The fund will designate cash or securities in an amount equal to
the value of the fund's total assets committed to consummating
forward contracts entered into under the second circumstance set
forth above. If the value of the securities declines, additional
cash or securities will be designated on a daily basis so that the
value of the cash or securities will equal the amount of the fund's
commitments on such contracts.
At maturity of a forward contract, the fund may either sell the
portfolio security and make delivery of the foreign currency or
retain the security and terminate its contractual obligation to
deliver the foreign currency by purchasing an offsetting contract
with the same currency trader obligating it to buy, on the same
maturity date, the same amount of foreign currency.
If the fund retains the portfolio security and engages in an
offsetting transaction, the fund will incur a gain or a loss (as
described below) to the extent there has been movement in forward
contract prices. If the fund engages in an offsetting transaction,
it may subsequently enter into a new forward contract to sell the
foreign currency. Should forward prices decline between the date
the fund enters into a forward contract for selling foreign
currency and the date it enters into an offsetting contract for
purchasing the foreign currency, the fund will realize a gain to
the extent that the price of the currency it has agreed to sell
exceeds the price of the currency it has agreed to buy. Should
forward prices increase, the fund will suffer a loss to the extent
the price of the currency it has agreed to buy exceeds the price of
the currency it has agreed to sell.
It is impossible to forecast what the market value of portfolio
securities will be at the expiration of a contract. Accordingly,
it may be necessary for the fund to buy additional foreign currency
on the spot market (and bear the expense of such purchase) if the
market value of the security is less than the amount of foreign
currency the fund is obligated to deliver and a decision is made to
sell the security and make delivery of the foreign currency.
Conversely, it may be necessary to sell on the spot market some of
the foreign currency received on the sale of the portfolio security
if its market value exceeds the amount of foreign currency the fund
is obligated to deliver.
The fund's dealing in forward contracts will be limited to the
transactions described above. This method of protecting the value
of the fund's portfolio securities against a decline in the value
of a currency does not eliminate fluctuations in the underlying
prices of the securities. It simply establishes a rate of exchange
that can be achieved at some point in time. Although such forward
contracts tend to minimize the risk of loss due to a decline in
value of hedged currency, they tend to limit any potential gain
that might result should the value of such currency increase.
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PAGE 54
Although the fund values its assets each business day in terms of
U.S. dollars, it does not intend to convert its foreign currencies
into U.S. dollars on a daily basis. It will do so from time to
time, and shareholders should be aware of currency conversion
costs. Although foreign exchange dealers do not charge a fee for
conversion, they do realize a profit based on the difference
(spread) between the prices at which they are buying and selling
various currencies. Thus, a dealer may offer to sell a foreign
currency to the fund at one rate, while offering a lesser rate of
exchange should the fund desire to resell that currency to the
dealer.
Options on Foreign Currencies. The fund may buy put and write
covered call options on foreign currencies for hedging purposes.
For example, a decline in the dollar value of a foreign currency in
which portfolio securities are denominated will reduce the dollar
value of such securities, even if their value in the foreign
currency remains constant. In order to protect against such
diminutions in the value of portfolio securities, the fund may buy
put options on the foreign currency. If the value of the currency
does decline, the fund will have the right to sell such currency
for a fixed amount in dollars and will thereby offset, in whole or
in part, the adverse effect on its portfolio which otherwise would
have resulted.
As in the case of other types of options, however, the benefit to
the fund derived from purchases of foreign currency options will be
reduced by the amount of the premium and related transaction costs.
In addition, where currency exchange rates do not move in the
direction or to the extent anticipated, the fund could sustain
losses on transactions in foreign currency options which would
require it to forego a portion or all of the benefits of
advantageous changes in such rates.
The fund may write options on foreign currencies for the same types
of hedging purposes. For example, when the fund anticipates a
decline in the dollar value of foreign-denominated securities due
to adverse fluctuations in exchange rates, it could, instead of
purchasing a put option, write a call option on the relevant
currency. If the expected decline occurs, the option will most
likely not be exercised and the diminution in value of portfolio
securities will be fully or partially offset by the amount of the
premium received.
As in the case of other types of options, however, the writing of a
foreign currency option will constitute only a partial hedge up to
the amount of the premium, and only if rates move in the expected
direction. If this does not occur, the option may be exercised and
the fund would be required to buy or sell the underlying currency
at a loss which may not be offset by the amount of the premium.
Through the writing of options on foreign currencies, the fund also
may be required to forego all or a portion of the benefits which
might otherwise have been obtained from favorable movements on
exchange rates.
<PAGE>
PAGE 55
All options written on foreign currencies will be covered. An
option written on foreign currencies is covered if the fund holds
currency sufficient to cover the option or has an absolute and
immediate right to acquire that currency without additional cash
consideration upon conversion of assets denominated in that
currency or exchange of other currency held in its portfolio. An
option writer could lose amounts substantially in excess of its
initial investments, due to the margin and collateral requirements
associated with such positions.
Options on foreign currencies are traded through financial
institutions acting as market-makers, although foreign currency
options also are traded on certain national securities exchanges,
such as the Philadelphia Stock Exchange and the Chicago Board
Options Exchange, subject to SEC regulation. In an over-the-
counter trading environment, many of the protections afforded to
exchange participants will not be available. For example, there
are no daily price fluctuation limits, and adverse market movements
could therefore continue to an unlimited extent over a period of
time. Although the purchaser of an option cannot lose more than
the amount of the premium plus related transaction costs, this
entire amount could be lost.
Foreign currency option positions entered into on a national
securities exchange are cleared and guaranteed by the OCC, thereby
reducing the risk of counterparty default. Further, a liquid
secondary market in options traded on a national securities
exchange may be more readily available than in the over-the-counter
market, potentially permitting the fund to liquidate open positions
at a profit prior to exercise or expiration, or to limit losses in
the event of adverse market movements.
The purchase and sale of exchange-traded foreign currency options,
however, is subject to the risks of availability of a liquid
secondary market described above, as well as the risks regarding
adverse market movements, margining of options written, the nature
of the foreign currency market, possible intervention by
governmental authorities and the effects of other political and
economic events. In addition, exchange-traded options on foreign
currencies involve certain risks not presented by the over-the-
counter market. For example, exercise and settlement of such
options must be made exclusively through the OCC, which has
established banking relationships in certain foreign countries for
the purpose. As a result, the OCC may, if it determines that
foreign governmental restrictions or taxes would prevent the
orderly settlement of foreign currency option exercises, or would
result in undue burdens on OCC or its clearing member, impose
special procedures on exercise and settlement, such as technical
changes in the mechanics of delivery of currency, the fixing of
dollar settlement prices or prohibitions on exercise.
<PAGE>
PAGE 56
Foreign Currency Futures and Related Options. The fund may enter
into currency futures contracts to sell currencies. It also may
buy put and write covered call options on currency futures.
Currency futures contracts are similar to currency forward
contracts, except that they are traded on exchanges (and have
margin requirements) and are standardized as to contract size and
delivery date. Most currency futures call for payment of delivery
in U.S. dollars. The fund may use currency futures for the same
purposes as currency forward contracts, subject to CFTC
limitations, including the limitation on the percentage of assets
that may be used, described in the prospectus. All futures
contracts are aggregated for purposes of the percentage
limitations.
Currency futures and options on futures values can be expected to
correlate with exchange rates, but will not reflect other factors
that may affect the values of the fund's investments. A currency
hedge, for example, should protect a Yen-denominated bond against a
decline in the Yen, but will not protect the fund against price
decline if the issuer's creditworthiness deteriorates. Because the
value of the fund's investments denominated in foreign currency
will change in response to many factors other than exchange rates,
it may not be possible to match the amount of a forward contract to
the value of the fund's investments denominated in that currency
over time.
The fund will not use leverage in its options and futures
strategies. The fund will hold securities or other options or
futures positions whose values are expected to offset its
obligations. The fund will not enter into an option or futures
position that exposes the fund to an obligation to another party
unless it owns either (i) an offsetting position in securities or
(ii) cash, receivables and short-term debt securities with a value
sufficient to cover its potential obligations.
<PAGE>
PAGE 57
APPENDIX B
OPTIONS AND STOCK INDEX FUTURES CONTRACTS
The fund may buy put and call options, write covered call options
and write cash-secured put options on equity securities. The fund
may enter into stock index futures contracts (futures contracts) to
buy or sell any index of U.S. securities. The fund may buy put and
call options on futures contracts, write covered put and call
options on futures contracts and buy put and call options on stock
indexes.
OPTIONS. An option is a contract. A person who buys a call option
for a security has the right to buy the security at a set price for
the length of the contract. A person who sells a call option is
called a writer. The writer of a call option agrees to sell the
security at the set price when the buyer wants to exercise the
option, no matter what the market price of the security is at that
time. A person who buys a put option has the right to sell a
security at a set price for the length of the contract. A person
who writes a put option agrees to buy the security at the set price
if the purchaser wants to exercise the option, no matter what the
market price of the security is at that time. An option is covered
if the writer owns the security (in the case of a call) or sets
aside the cash or securities of equivalent value (in the case of a
put) that would be required upon exercise.
The price paid by the buyer for an option is called a premium. In
addition the buyer generally pays a broker a commission. The
writer receives a premium, less another commission, at the time the
option is written. The cash received is retained by the writer
whether or not the option is exercised. A writer of a call option
may have to sell the security for a below-market price if the
market price rises above the exercise price. A writer of a put
option may have to pay an above-market price for the security if
its market price decreases below the exercise price. The risk of
the writer is potentially unlimited, unless the option is covered.
Options can be used to produce incremental earnings, protect gains
and facilitate buying and selling securities for investment
purposes. The use of options may benefit the fund and its
shareholders by improving the fund's liquidity and by helping to
stabilize the value of its net assets.
Buying options. Put and call options may be used as a trading
technique to facilitate buying and selling securities for
investment reasons. They also may be used for investment. Options
are used as a trading technique to take advantage of any disparity
between the price of the underlying security in the securities
market and its price on the options market. It is anticipated the
trading technique will be utilized only to effect a transaction
when the price of the security plus the option price will be as
good or better than the price at which the security could be bought
<PAGE>
PAGE 58
or sold directly. When the option is purchased, the fund pays a
premium and a commission. It then pays a second commission on the
purchase or sale of the underlying security when the option is
exercised. For record keeping and tax purposes, the price obtained
on the purchase of the underlying security will be the combination
of the exercise price, the premium and both commissions. When
using options as a trading technique, commissions on the option
will be set as if only the underlying securities were traded.
Put and call options also may be held by the fund for investment
purposes. Options permit the fund to experience the change in the
value of a security with a relatively small initial cash
investment.
The risk the fund assumes when it buys an option is the loss of the
premium. To be beneficial to the fund, the price of the underlying
security must change within the time set by the option contract.
Furthermore, the change must be sufficient to cover the premium
paid, the commissions paid both in the acquisition of the option
and in a closing transaction or in the exercise of the option and
sale (in the case of a call) or purchase (in the case of a put) of
the underlying security. Even then the price change in the
underlying security does not ensure a profit since prices in the
option market may not reflect such a change.
Writing covered options. The fund will write covered options when
it feels it is appropriate and will follow these guidelines:
'Underlying securities will continue to be bought or sold solely on
the basis of investment considerations consistent with the fund's
goals.
'All options written by the fund will be covered. For covered call
options if a decision is made to sell the security, the fund will
attempt to terminate the option contract through a closing purchase
transaction.
'The fund will deal only in standard option contracts traded on
national securities exchanges or those that may be quoted on NASDAQ
(a system of price quotations developed by the National Association
of Securities Dealers, Inc.).
'The fund will write options only as permitted under federal or
state laws or regulations, such as those that limit the amount of
total assets subject to the options. While no limit has been set
by the fund, it will conform to the requirements of those states.
For example, California limits the writing of options to 50% of the
assets of a fund. Some regulations also affect the Custodian.
When a covered call option is written, the Custodian segregates the
underlying securities and issues a receipt. There are certain
rules regarding banks issuing such receipts that may restrict the
amount of covered call options written. Furthermore, the fund is
limited to pledging not more than 15% of the cost of its total
assets.
<PAGE>
PAGE 59
Net premiums on call options closed or premiums on expired call
options are treated as short-term capital gains. Since the fund is
taxed as a regulated investment company under the Internal Revenue
Code, any gains on options and other securities held less than
three months must be limited to less than 30% of its annual gross
income.
If a covered call option is exercised, the security is sold by the
fund. The premium received upon writing the option is added to the
proceeds received from the sale of the security. The fund will
recognize a capital gain or loss based upon the difference between
the proceeds and the security's basis. Premiums received from
writing outstanding call options are included as a deferred credit
in the Statement of Assets and Liabilities and adjusted daily to
the current market value.
Options are valued at the close of the New York Stock Exchange. An
option listed on a national exchange, CBOE or NASDAQ will be valued
at the last-quoted sales price or, if such a price is not readily
available, at the mean of the last bid and asked prices.
STOCK INDEX FUTURES CONTRACTS. Stock index futures contracts are
commodity contracts listed on commodity exchanges. They currently
include contracts on the Standard & Poor's 500 Stock Index (S&P 500
Index) and other broad stock market indexes such as the New York
Stock Exchange Composite Stock Index and the Value Line Composite
Stock Index, as well as narrower sub-indexes such as the S&P 100
Energy Stock Index and the New York Stock Exchange Utilities Stock
Index. A stock index assigns relative values to common stocks
included in the index and the index fluctuates with the value of
the common stocks so included.
A futures contract is a legal agreement between a buyer or seller
and the clearinghouse of a futures exchange in which the parties
agree to make a cash settlement on a specified future date in an
amount determined by the stock index on the last trading day of the
contract. The amount is a specified dollar amount (usually $100 or
$500) multiplied by the difference between the index value on the
last trading day and the value on the day the contract was struck.
For example, the S&P 500 Index consists of 500 selected common
stocks, most of which are listed on the New York Stock Exchange.
The S&P 500 Index assigns relative weightings to the common stocks
included in the Index, and the Index fluctuates with changes in the
market values of those stocks. In the case of S&P 500 Index
futures contracts, the specified multiple is $500. Thus, if the
value of the S&P 500 Index were 150, the value of one contract
would be $75,000 (150 x $500). Unlike other futures contracts, a
stock index futures contract specifies that no delivery of the
actual stocks making up the index will take place. Instead,
settlement in cash must occur upon the termination of the contract.
For example, excluding any transaction costs, if the fund enters
into one futures contract to buy the S&P 500 Index at a specified
<PAGE>
PAGE 60
future date at a contract value of 150 and the S&P 500 Index is at
154 on that future date, the fund will gain $500 x (154-150) or
$2,000. If the fund enters into one futures contract to sell the
S&P 500 Index at a specified future date at a contract value of 150
and the S&P 500 Index is at 152 on that future date, the fund will
lose $500 x (152-150) or $1,000.
Unlike the purchase or sale of an equity security, no price would
be paid or received by the fund upon entering into futures
contracts. However, the fund would be required to deposit with its
custodian, in a segregated account in the name of the
futures broker, an amount of cash or U.S. Treasury bills equal to
approximately 5% of the contract value. This amount is known as
initial margin. The nature of initial margin in futures
transactions is different from that of margin in security
transactions in that futures contract margin does not involve
borrowing funds by the fund to finance the transactions. Rather,
the initial margin is in the nature of a performance bond or good-
faith deposit on the contract that is returned to the fund upon
termination of the contract, assuming all contractual obligations
have been satisfied.
Subsequent payments, called variation margin, to and from the
broker would be made on a daily basis as the price of the
underlying stock index fluctuates, making the long and short
positions in the contract more or less valuable, a process known as
marking to market. For example, when the fund enters into a
contract in which it benefits from a rise in the value of an index
and the price of the underlying stock index has risen, the fund
will receive from the broker a variation margin payment equal to
that increase in value. Conversely, if the price of the underlying
stock index declines, the fund would be required to make a
variation margin payment to the broker equal to the decline in
value.
How the Fund Would Use Stock Index Futures Contracts. The fund
intends to use stock index futures contracts and related options
for hedging and not for speculation. Hedging permits the fund to
gain rapid exposure to or protect itself from changes in the
market. For example, the fund may find itself with a high cash
position at the beginning of a market rally. Conventional
procedures of purchasing a number of individual issues entail the
lapse of time and the possibility of missing a significant market
movement. By using futures contracts, the fund can obtain
immediate exposure to the market and benefit from the beginning
stages of a rally. The buying program can then proceed and once it
is completed (or as it proceeds), the contracts can be closed.
Conversely, in the early stages of a market decline, market
exposure can be promptly offset by entering into stock index
futures contracts to sell units of an index and individual stocks
can be sold over a longer period under cover of the resulting short
contract position.
<PAGE>
PAGE 61
The fund may enter into contracts with respect to any stock index
or sub-index. To hedge the fund's portfolio successfully, however,
the fund must enter into contracts with respect to indexes or sub-
indexes whose movements will have a significant correlation with
movements in the prices of the fund's portfolio securities.
Special Risks of Transactions in Stock Index Futures Contracts.
1. Liquidity. The fund may elect to close some or all of its
contracts prior to expiration. The purpose of making such a move
would be to reduce or eliminate the hedge position held by the
fund. The fund may close its positions by taking opposite
positions. Final determinations of variation margin are then made,
additional cash as required is paid by or to the fund, and the fund
realizes a gain or a loss.
Positions in stock index futures contracts may be closed only on an
exchange or board of trade providing a secondary market for such
futures contracts. For example, futures contracts transactions can
currently be entered into with respect to the S&P 500 Stock Index
on the Chicago Mercantile Exchange, the New York Stock Exchange
Composite Stock Index on the New York Futures Exchange and the
Value Line Composite Stock Index on the Kansas City Board of Trade.
Although the fund intends to enter into futures contracts only on
exchanges or boards of trade where there appears to be an active
secondary market, there is no assurance that a liquid secondary
market will exist for any particular contract at any particular
time. In such event, it may not be possible to close a futures
contract position, and in the event of adverse price movements, the
fund would have to make daily cash payments of variation margin.
Such price movements, however, will be offset all or in part by the
price movements of the securities subject to the hedge. Of course,
there is no guarantee the price of the securities will correlate
with the price movements in the futures contract and thus provide
an offset to losses on a futures contract.
2. Hedging Risks. There are several risks in using stock index
futures contracts as a hedging device. One risk arises because the
prices of futures contracts may not correlate perfectly with
movements in the underlying stock index due to certain market
distortions. First, all participants in the futures market are
subject to initial margin and variation margin requirements.
Rather than making additional variation margin payments, investors
may close the contracts through offsetting transactions which could
distort the normal relationship between the index and futures
markets. Second, the margin requirements in the futures market are
lower than margin requirements in the securities market, and as a
result the futures market may attract more speculators than does
the securities market. Increased participation by speculators in
the futures market also may cause temporary price distortions.
Because of price distortion in the futures market and because of
imperfect correlation between movements in stock indexes and
movements in prices of futures contracts, even a correct forecast
of general market trends may not result in a successful hedging
transaction over a short period.<PAGE>
PAGE 62
Another risk arises because of imperfect correlation between
movements in the value of the futures contracts and movements in
the value of securities subject to the hedge. If this occurred,
the fund could lose money on the contracts and also experience a
decline in the value of its portfolio securities. While this could
occur, IDS believes that over time the value of the fund's
portfolio will tend to move in the same direction as the market
indexes and will attempt to reduce this risk, to the extent
possible, by entering into futures contracts on indexes whose
movements it believes will have a significant correlation with
movements in the value of the fund's portfolio securities sought to
be hedged. It also is possible that if the fund has hedged against
a decline in the value of the stocks held in its portfolio and
stock prices increase instead, the fund will lose part or all of
the benefit of the increased value of its stock which it has hedged
because it will have offsetting losses in its futures positions.
In addition, in such situations, if the fund has insufficient cash,
it may have to sell securities to meet daily variation margin
requirements. Such sales of securities may be, but will not
necessarily be, at increased prices which reflect the rising
market. The fund may have to sell securities at a time when it may
be disadvantageous to do so.
OPTIONS ON STOCK INDEX FUTURES CONTRACTS. Options on stock index
futures contracts are similar to options on stock except that
options on futures contracts give the purchaser the right, in
return for the premium paid, to assume a position in a stock index
futures contract (a long position if the option is a call and a
short position if the option is a put) at a specified exercise
price at any time during the period of the option. If the option
is closed instead of exercised, the holder of the option receives
an amount that represents the amount by which the market price of
the contract exceeds (in the case of a call) or is less than (in
the case of a put) the exercise price of the option on the futures
contract. If the option does not appreciate in value prior to the
exercise date, the fund will suffer a loss of the premium paid.
OPTIONS ON STOCK INDEXES. Options on stock indexes are securities
traded on national securities exchanges. An option on a stock
index is similar to an option on a futures contract except all
settlements are in cash. A fund exercising a put, for example,
would receive the difference between the exercise price and the
current index level. Such options would be used in the same manner
as options on futures contracts.
SPECIAL RISKS OF TRANSACTIONS IN OPTIONS ON STOCK INDEX FUTURES
CONTRACTS AND OPTIONS ON STOCK INDEXES. As with options on stocks,
the holder of an option on a futures contract or on a stock index
may terminate a position by selling an option covering the same
contract or index and having the same exercise price and expiration
date. The ability to establish and close out positions on such
options will be subject to the development and maintenance of a
liquid secondary market. The fund will not purchase options unless
the market for such options has developed sufficiently, so that the
<PAGE>
PAGE 63
risks in connection with options are not greater than the risks in
connection with stock index futures contracts transactions
themselves. Compared to using futures contracts, purchasing
options involves less risk to the fund because the maximum amount
at risk is the premium paid for the options (plus transaction
costs). There may be circumstances, however, when using an option
would result in a greater loss to the fund than using a futures
contract, such as when there is no movement in the level of the
stock index.
TAX TREATMENT. As permitted under federal income tax laws, the
fund intends to identify futures contracts as mixed straddles and
not mark them to market, that is, not treat them as having been
sold at the end of the year at market value. Such an election may
result in the fund being required to defer recognizing losses
incurred by entering into futures contracts and losses on
underlying securities identified as being hedged against.
Federal income tax treatment of gains or losses from transactions
in options on futures contracts and stock indexes is currently
unclear, although the fund's tax advisers currently believe marking
to market is not required. Depending on developments, and although
no assurance is given, the fund may seek Internal Revenue Service
(IRS) rulings clarifying questions concerning such treatment.
Certain provisions of the Internal Revenue Code may also limit the
fund's ability to engage in futures contracts and related options
transactions. For example, at the close of each quarter of the
fund's taxable year, at least 50% of the value of its assets must
consist of cash, government securities and other securities,
subject to certain diversification requirements. Less than 30% of
its gross income must be derived from sales of securities held less
than three months.
The IRS has ruled publicly that an exchange-traded call option is a
security for purposes of the 50-%-of-assets test and that its
issuer is the issuer of the underlying security, not the writer of
the option, for purposes of the diversification requirements. In
order to avoid realizing a gain within the three-month period, the
fund may be required to defer closing out a contract beyond the
time when it might otherwise be advantageous to do so. The fund
also may be restricted in purchasing put options for the purpose of
hedging underlying securities because of applying the short sale
holding period rules with respect to such underlying securities.
Accounting for futures contracts will be according to generally
accepted accounting principles. Initial margin deposits will be
recognized as assets due from a broker (the fund's agent in
acquiring the futures position). During the period the futures
contract is open, changes in value of the contract will be
recognized as unrealized gains or losses by marking to market on a
daily basis to reflect the market value of the contract at the end
of each day's trading. Variation margin payments will be made or
received depending upon whether gains or losses are incurred. All
contracts and options will be valued at the last-quoted sales price
on their primary exchange.<PAGE>
PAGE 64
APPENDIX C
STRIPPED MORTGAGE-BACKED SECURITIES
The fund may invest in stripped mortgage-backed securities.
Generally, there are two classes of stripped mortgage-backed
securities: Interest Only (IO) and Principal Only (PO). IOs
entitle the holder to receive distributions consisting of all or a
portion of the interest on the underlying pool of mortgage loans or
mortgage-backed securities. POs entitle the holder to receive
distributions consisting of all or a portion of the principal of
the underlying pool of mortgage loans or mortgage-backed
securities. The cash flows and yields on IOs and POs are extremely
sensitive to the rate of principal payments (including prepayments)
on the underlying mortgage loans or mortgage-backed securities. A
rapid rate of principal payments may adversely affect the yield to
maturity of IOs. A slow rate of principal payments may adversely
affect the yield to maturity of POs. If prepayments of principal
are greater than anticipated, an investor may incur substantial
losses. If prepayments of principal are slower than anticipated,
the yield on a PO will be affected more severely than would be the
case with a traditional mortgage-backed security.
<PAGE>
PAGE 65
APPENDIX D
DOLLAR-COST AVERAGING
A technique that works well for many investors is one that
eliminates random buy and sell decisions. One such system is
dollar-cost averaging. Dollar-cost averaging involves building a
portfolio through the investment of fixed amounts of money on a
regular basis regardless of the price or market condition. This
may enable an investor to smooth out the effects of the volatility
of the financial markets. By using this strategy, more shares will
be purchased when the price is low and less when the price is high.
As the accompanying chart illustrates, dollar-cost averaging tends
to keep the average price paid for the shares lower than the
average market price of shares purchased, although there is no
guarantee.
While this does not ensure a profit and does not protect against a
loss if the market declines, it is an effective way for many
shareholders who can continue investing through changing market
conditions to accumulate shares in a fund to meet long term goals.
Dollar-cost averaging
Regular Market Price Shares
Investment of a Share Acquired
$100 $ 6.00 16.7
100 4.00 25.0
100 4.00 25.0
100 6.00 16.7
100 5.00 20.0
$500 $25.00 103.4
Average market price of a share over 5 periods:
$5.00 ($25.00 divided by 5).
The average price you paid for each share:
$4.84 ($500 divided by 103.4).
<PAGE>
PAGE 66
Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS Equity Plus Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in
securities, of IDS Equity Plus Fund, Inc. as of November 30,
1993, and the related statement of operations for the year
then ended and the statements of changes in net assets for
each of the years in the two-year period ended November 30,
1993, and the financial highlights for each of the years in
the ten-year period ended November 30, 1993. These financial
statements and the financial highlights are the responsibility
of fund management. Our responsibility is to express an
opinion on these financial statements and the financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and the financial highlights are free
of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. Investment securities held in
custody are confirmed to us by the custodian. As to securities
purchased and sold but not received or delivered, we request
confirmations from brokers, and where replies are not
received, we carry out other appropriate auditing procedures.
An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial
position of IDS Equity Plus Fund, Inc. at November 30, 1993,
and the results of its operations for the year then ended and
the changes in its net assets for each of the years in the
two-year period ended November 30, 1993, and the financial
highlights for the periods stated in the first paragraph
above, in conformity with generally accepted accounting
principles.
KPMG Peat Marwick
Minneapolis, Minnesota
January 7, 1994
<PAGE>
PAGE 67
<TABLE>
Statement of assets and liabilities
IDS Equity Plus Fund, Inc.
Nov. 30, 1993
_____________________________________________________________________________________________________________
<CAPTION>
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $469,032,857) $622,654,170
Dividends receivable 1,128,710
Receivable for investment securities sold 3,993,548
Receivable for foward foreign currency contracts held, at value (Notes 1 and 4) 866,013
_____________________________________________________________________________________________________________
Total assets 628,642,441
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 9,542,438
Payable for investment securities purchased 365,901
Payable for forward foreign currency contracts held, at value (Notes 1 and 4) 864,780
Accrued investment management and services fee 294,276
Accrued distribution fee 25,454
Accrued transfer agency fee 63,186
Other accrued expenses 108,919
_____________________________________________________________________________________________________________
Total liabilities 11,264,954
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $617,377,487
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 51,294,444 shares $ 512,944
Additional paid-in capital 405,624,811
Undistributed net investment income 1,142,297
Accumulated net realized gain on investments (Note 1) 56,474,889
Unrealized appreciation of investments (Note 4) 153,622,546
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $617,377,487
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 12.04
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.</TABLE>
<PAGE>
PAGE 68
Financial statements
<TABLE>
Statement of operations
IDS Equity Plus Fund, Inc.
Year ended Nov. 30, 1993
_____________________________________________________________________________________________________________
<CAPTION>
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $128,505) $ 8,362,891
Interest 1,742,436
_____________________________________________________________________________________________________________
Total income 10,105,327
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 3,161,075
Distribution fee 258,911
Transfer agency fee 642,140
Compensation of directors 31,602
Compensation of officers 6,708
Custodian fees 60,016
Postage 91,779
Registration fees 83,893
Reports to shareholders 22,402
Audit fees 22,000
Administrative 10,715
Other 17,736
_____________________________________________________________________________________________________________
Total expenses 4,408,977
_____________________________________________________________________________________________________________
Investment income -- net 5,696,350
_____________________________________________________________________________________________________________
Realized and unrealized gain on investments and foreign currency -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions (including loss of $56
from foreign currency transactions) (Note 3) 56,475,888
Net change in unrealized appreciation or depreciation of investments 4,317,731
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 60,793,619
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $66,489,969
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.</TABLE>
<PAGE>
PAGE 69
Financial statements
<TABLE>
Statements of changes in net assets
IDS Equity Plus Fund, Inc.
Year ended Nov. 30,
_____________________________________________________________________________________________________________
<CAPTION>
Operations and distributions 1993 1992
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 5,695,350 $ 5,347,396
Net realized gain on investments and foreign currency 56,475,888 19,788,383
Net change in unrealized appreciation or
depreciation of investments 4,317,731 51,180,085
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 66,489,969 76,315,864
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (5,557,608) (5,600,515)
Net realized gain on investments (19,786,644) (26,326,433)
_____________________________________________________________________________________________________________
Total distributions (25,344,252) (31,926,948)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
11,347,396 and 3,218,632 shares (Note 2) 131,816,576 33,966,405
Net asset value of 2,148,496 and 3,101,379 shares
issued in reinvestment of distributions 23,909,060 30,033,746
Payments for redemptions of
4,683,577 and 3,157,460 shares (54,866,937) (33,283,987)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
8,812,315 and 3,162,551 shares 100,858,699 30,716,164
_____________________________________________________________________________________________________________
Total increase in net assets 142,004,416 75,105,080
Net assets at beginning of year 475,373,071 400,267,991
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$1,142,297 and $1,002,564) $617,377,487 $475,373,071
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.</TABLE>
<PAGE>
PAGE 70
Notes to financial statements
IDS Equity Plus Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
The fund is registered under the Investment Company Act of
1940 (as amended) as a diversified, open-end management
investment company. 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.
Foreign currency translations and
forward 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.
It is not practicable to identify that portion of realized and
unrealized gain (loss) arising from changes in the exchange
rates from the portion arising from changes in the market
value of investments.
<PAGE>
PAGE 71
Notes to financial statements
IDS Equity Plus Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
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.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, undistributed net
investment income and accumulated net realized gain have been
increased by $991 and $465, respectivesly, resulting in a net
reclassification adjustment to decrease paid-in-capital by
$1,456.<PAGE>
PAGE 72
Notes to financial statements
IDS Equity Plus Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
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
Under terms of an agreement dated Nov. 14, 1991, the fund pays
IDS Financial Corporation (IDS) a fee for managing its
investments, recordkeeping and other specified services. The
fee is 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 0.14% of average daily net
assets. 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 increased the fee by $52,030 for
the year ended Nov. 30, 1993.
The fund also pays IDS a distribution fee at an annual rate of
$6 per shareholder account and a transfer agency fee at an
annual rate of $15 per shareholder account. The transfer
agency fee is reduced by earnings on monies pending
shareholder redemptions.
IDS will assume and pay any expenses (except taxes and
brokerage commissions) that exceed the most restrictive
applicable state expense limitation.<PAGE>
PAGE 73
Notes to financial statements
IDS Equity Plus Fund, Inc.
___________________________________________________________________
2. Expenses and sales charges
Sales charges by IDS Financial Services Inc. for distributing
fund shares were $3,132,061 for the year ended Nov. 30, 1993.
The fund also pays custodian fees to IDS Bank & Trust, an
affiliate of IDS.
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 $12,361 for the year
ended Nov. 30, 1993.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other
than short-term obligations) aggregated $290,266,451 and
$214,964,942, respectively, for the year ended Nov. 30, 1993.
Realized gains and losses are determined on an identified cost
basis.
Brokerage commissions paid to brokers affiliated with IDS were
$144,243 for the year ended Nov. 30, 1993.
Income from securities lending amounted to $11,438
for the year ended Nov. 30, 1993. 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 74
Notes to financial statements
IDS Equity Plus Fund, Inc.
___________________________________________________________________
4. Forward foreign currency contracts
At Nov. 30, 1993, the fund had entered into two forward
foreign currency exchange contracts that obligate the fund to
deliver currency at a specified future date. The unrealized
appreciation of $1,233 on these contracts is included in the
accompanying financial statements. The terms of the open
contracts are as follows:
<TABLE><CAPTION>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered Nov. 30, 1993 received Nov. 30, 1993
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Dec. 6, 1993 819,150 $612,838 613,789 $613,789
Canadian Dollar U.S. Dollar
Dec. 6, 1993 336,758 251,942 252,224 252,224
Canadian Dollar U.S. Dollar
________ ________
$864,780 $866,013
</TABLE>
___________________________________________________________________
5. Illiquid securities
At Nov. 30, 1993, investments in securities included issued
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 Nov. 30, 1993, was $8,000,000 which represents
1% of net assets. Pursuant to guidelines adopted by the fund's
board of directors, certain unregistered securities are
determined to be liquid and are not included within the 10%
limitation specified above.
___________________________________________________________________
6. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on page 5 of the prospectus.
<PAGE>
PAGE 75
Investments in securities
<TABLE>
IDS Equity Plus Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
<CAPTION>
Common stocks (92.6%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (4.7%)
General Motors Cl H 275,000 $ 10,243,750
Martin Marietta 250,000 10,250,000
Thiokol 350,000 8,706,250
____________
Total 29,200,000
_____________________________________________________________________________________________________________________________
Automotive & related (3.9%)
Dana 225,000 12,318,750
Goodyear Tire & Rubber 270,000 12,015,000
____________
Total 24,333,750
_____________________________________________________________________________________________________________________________
Building materials (10.0%)
Clayton Homes 350,000 (b) 8,050,000
Lennar 275,000 8,181,250
Masco 325,000 11,050,000
Sherwin-Williams 425,000 14,025,000
Weyerhaeuser 250,000 10,937,500
Williamette Inds 200,000 9,600,000
____________
Total 61,843,750
_____________________________________________________________________________________________________________________________
Chemicals (4.2%)
Air Products & Chemicals 250,000 11,031,250
Hanna (MA) 200,000 6,175,000
Pall 450,001 8,550,019
____________
Total 25,756,269
_____________________________________________________________________________________________________________________________
Computers & office equipment (4.2%)
Banyan Systems 300,000 (b) 6,900,000
Cisco Systems 175,000 (b) 9,843,750
Informix 200,000 (b) 3,650,000
Parametric Technology 150,000 (b) 5,737,500
____________
Total 26,131,250
_____________________________________________________________________________________________________________________________
Energy (3.9%)
Enron Oil & Gas 225,000 8,690,625
Enterra 250,000 (b) 4,500,000
Oceaneering Intl 250,000 (b) 3,375,000
See accompanying notes to investments in securities.</TABLE>
<PAGE>
PAGE 76
Investments in securities
<TABLE>
IDS Equity Plus Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
<CAPTION>
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Rowan 900,000 (b) $ 7,650,000
____________
Total 24,215,625
_____________________________________________________________________________________________________________________________
Financial services (6.3%)
Mellon Bank 125,000 6,937,500
Merrill Lynch 200,000 9,075,000
Morgan Stanley Group 100,000 7,175,000
Northern Trust 225,000 8,550,000
Paine Webber 275,000 7,321,875
____________
Total 39,059,375
_____________________________________________________________________________________________________________________________
Health care (3.0%)
Abbott Laboratories 300,000 8,775,000
Beckman Instruments 10,000 268,750
Genentech 193,500 (b) 9,239,625
____________
Total 18,283,375
_____________________________________________________________________________________________________________________________
Household products (2.2%)
Rubbermaid 400,000 13,400,000
_____________________________________________________________________________________________________________________________
Industrial equipment & services (4.3%)
Giddings & Lewis 350,000 8,487,500
Illinois Tool Works 250,000 9,468,750
Teleflex 270,000 8,403,750
____________
Total 26,360,000
_____________________________________________________________________________________________________________________________
Industrial transportation (2.0%)
CSX 150,000 12,450,000
_____________________________________________________________________________________________________________________________
Insurance (5.7%)
ACE Limited 250,000 7,281,250
Amer Re 200,000 (b) 5,400,000
SAFECO 125,000 7,093,750
Tempest Reinsurance 80,000 (b,c) 8,000,000
Transatlantic Holdings 150,000 7,725,000
____________
Total 35,500,000
_______________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.</TABLE>
<PAGE>
PAGE 77
Investments in securities
<TABLE>
IDS Equity Plus Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
<CAPTION>
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Media (6.0%)
Harcourt General 250,000 $ 10,187,500
Houghton Mifflin 200,000 9,050,000
McGraw-Hill 150,000 10,462,500
Multimedia 200,000 (b) 7,400,000
____________
Total 37,100,000
_____________________________________________________________________________________________________________________________
Metals (4.1%)
Nucor 270,000 14,141,250
Worthington Inds 647,300 11,165,925
____________
Total 25,307,175
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.6%)
Tenneco 200,000 9,625,000
_____________________________________________________________________________________________________________________________
Paper & packaging (3.2%)
Crown Cork & Seal 325,000 (b) 12,837,500
Union Camp 150,000 6,975,000
____________
Total 19,812,500
_____________________________________________________________________________________________________________________________Retail
(6.6%)
Albertson's 355,000 8,786,250
Dillard Dept Store Cl A 275,000 11,343,750
Pep Boys-Manny Moe & Jack 475,000 12,231,250
Sysco 300,000 8,287,500
____________
Total 40,648,750
_____________________________________________________________________________________________________________________________
Soaps & cosmetics (3.7%)
Procter & Gamble 150,000 8,512,500
Shaw Inds 300,000 14,250,000
____________
Total 22,762,500
_____________________________________________________________________________________________________________________________
Utilities (6.3%)
Bell Atlantic 75,000 4,500,000
Cable & Wireless 400,000 8,750,000
Equitable Resources 200,000 7,250,000
See accompanying notes to investments in securities.</TABLE>
<PAGE>
PAGE 78
Investments in securities
<TABLE>
IDS Equity Plus Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
<CAPTION>
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
MCI Communications 350,000 $ 8,531,250
Pacific Telesis Group 175,000 9,931,250
____________
Total 38,962,500
_____________________________________________________________________________________________________________________________
Foreign (6.7%)(d)
BBC Brown Boveri 8,500 5,706,330
Credit Local 75,000 5,733,825
Renaissance Energy 300,000 (b) 5,892,033
Royal Bank Canada 300,000 5,976,207
Talisman 270,000 (b) 5,605,851
TOTAL 250,000 6,343,750
TransCanada Pipeline 400,000 5,948,148
____________
Total 41,206,144
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $418,336,310) $571,957,963
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (8.2%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________ <S>
<C> <C> <C>
U.S. government agencies (1.0%)
Federal Home Loan Bank
Disc Notes
12-20-93 3.05% $1,000,000 $ 998,396
12-27-93 3.06 2,500,000 2,494,493
Federal Home Loan Mtge
Corp Disc Note
12-31-93 3.06 500,000 498,729
Federal Natl Mtge Assn
Disc Note
12-21-93 3.06 2,200,000 2,196,272
_____________
Total 6,187,890
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.</TABLE>
<PAGE>
PAGE 79
Investments in securities
<TABLE>
IDS Equity Plus Fund, Inc. (Percentages represent value of
Nov. 30, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Commercial paper (7.2%)
BBV Delaware
01-04-94 3.35% $5,300,000 $ 5,283,281
Becton Dickinson
12-22-93 3.09 5,000,000 4,991,017
Beneficial
12-02-93 3.09 4,000,000 3,999,658
Cafco
01-28-94 3.37 2,200,000 2,188,126
Ciesco LP
01-05-94 3.34 2,100,000 2,093,222
Cit Group Holdings
12-07-93 3.10 4,000,000 3,997,940
Colgate Palmolive
12-13-93 3.11 1,600,000 (e) 1,598,347
Columbia Fuels
01-10-94 3.39 5,600,000 5,579,031
Fleet Funding
02-10-94 3.40 3,630,000 (e) 3,605,498
Hewlett-Packard
12-07-93 3.11 600,000 599,690
Morgan Stanley Group
12-01-93 3.17 1,700,000 1,700,000
Pacific Gas & Electric
12-08-93 3.10 2,700,000 2,698,372
St. Paul Companies
01-28-94 3.37 4,400,000 (e) 4,376,252
Southwestern Bell Capital
12-16-93 3.10 1,000,000 (e) 998,712
Southwestern Bell Telephone
12-13-93 3.12 800,000 799,171
____________
Total 44,508,317
________________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $50,696,547) $ 50,696,207
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $469,032,857)(f) $622,654,170
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.</TABLE>
<PAGE>
PAGE 80
Investments in securities
<TABLE>
IDS Equity Plus Fund, Inc.
Nov. 30, 1993
_____________________________________________________________________________________________________________________________
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) Identifies issues considered to be illiquid (see Note 5 to the financial statements).
Information concerning such security holdings at Nov. 30, 1993, is as follows:
Acquisition
Security date Cost
________________________________________________________________________________
<S> <C> <C>
Tempest Reinsurance 09-13-93 $8,000,000
(d) Foreign security values are stated in U.S. dollars.
(e) Commercial paper sold within terms of a private placement memorandum, exempt from registration
under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to
dealers in that program or other "accredited investors". These securities have been determined
to be liquid under guidelines established by the board of directors.
(f) At Nov. 30, 1993, the cost of securities for federal income tax purposes was $469,032,857
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $163,523,507
Unrealized depreciation (9,902,194)
_____________________________________________________________________________________________________________________________
Net unrealized appreciation $153,621,313
_____________________________________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 81
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) FINANCIAL STATEMENTS:
Financial Statements included with prospectus:
Independent Auditors Report dated January 7, 1994.
Statements:
Statement of Assets and Liabilities, Nov. 30, 1993.
Statement of Operations, year ended Nov. 30, 1993.
Statements of Changes in Net Assets, for the years ended
Nov. 30, 1993 and Nov. 30, 1992.
Notes to Financial Statements.
Schedules:
1. Investments in Securities, Nov. 30, 1993.
Notes to Investment in Securities.
Financial Statements to be filed by Amendment.
(b) EXHIBITS:
1. Copy of Articles of Incorporation, as amended October 17,
1988, filed electronically as Exhibit 1 to Post-Effective
Amendment No. 64 to Registration Statement 2-13188 is hereby
incorporated by reference.
2. Copy of By-laws, as amended January 12, 1989, filed
electronically as Exhibit 2 to Post-Effective Amendment No. 69
to Registration Statement No. 2-13188 are hereby incorporated
by reference.
3. Not Applicable.
4. Copy of Stock certificate, filed as Exhibit 4 to Post-
Effective Amendment No. 55 to Registration Statement No. 2-
13188 is hereby incorporated by reference.
5. Copy of Investment Management and Services Agreement between
Registrant and IDS Financial Corporation, dated Nov. 14, 1991,
filed electronically as Exhibit 5 to Post-Effective Amendment
No. 72 to Registration Statement No. 2-13188 is hereby
incorporated by reference.
6. Copy of Distribution Agreement between Registrant and IDS
Financial Services Inc. dated January 1, 1987, filed
electronically as Exhibit 6 to Post-Effective Amendment No. 62
to Registration Statement 2-13188 is hereby incorporated by
reference.
<PAGE>
PAGE 82
7. All employees who have attained age 21 and completed one year
of service are eligible to participate in a thrift plan.
Entry into the plan is Jan. 1 or July 1 following completion
of the age and service requirements. The Registrant
contributes each year an amount up to 15 percent of their
annual salaries, the maximum amount permitted under Section
404(a) of the Internal Revenue Code, or up to a maximum of
0.08 of 1 percent of the Fund's net income before income taxes
and other adjustments. Employees to the Registrant become
eligible to participate in a retirement plan on Jan. 1 or July
1 following completion of one year of employment and
attainment of age 21. Contributions to the retirement plan
cease no later than the time at which the participant reaches
the normal retirement age of 65.
8(a). Copy of Sub-Custodial Agreement dated August 1992,
between Morgan Stanley Trust Company and IDS Bank & Trust
filed as Exhibit 8(b) to Post-Effective Amendment No. 76
is hereby incorporated by reference.
9(a). Copy of Agreement of Merger, dated April 10, 1986 filed
electronically as Exhibit 9 to Post-Effective Amendment
No. 58 to Registration Statement No. 2-13188 is hereby
incorporated by reference.
9(b). Copy of Transfer Agency Agreement dated Nov. 14, 1991
filed electronically as Exhibit 9(b) to Post-Effective
Amendment No. 72 to Registration Statement No. 2-13188 is
hereby incorporated by reference.
9(c). Copy of License Agreement, dated January 25, 1988, filed
electronically as Exhibit 9(c) to Post-Effective
Amendment No. 69 to Registration Statement No. 2-13188 is
hereby incorporated by reference.
10. Not Applicable.
11. Copy of Independent Auditor's Consent is herewith filed
electronically.
12. None.
13. Not Applicable.
14. Forms of Keogh, IRA and other retirement plans, filed as
Exhibits 14(a) through 14(n) to IDS Growth Fund, Inc., Post-
Effective Amendment No. 34 to Registration Statement No. 2-
38355 on Sept. 8, 1986, are incorporated herein by reference.
15. Copy of Plan and Supplemental Agreement of Distribution dated
January 1, 1987, filed electronically as Exhibit 15 to Post-
Effective Amendment No. 62 to Registration Statement No. 2-
13188 is hereby incorporated by reference.
<PAGE>
PAGE 83
16. Copy of Schedule for computation of each performance quotation
provided in the Registration Statement in response to Item
22(b), filed as Exhibit 16 to Post-Effective Amendment No. 76
is hereby incorporated by reference.
17(a). Directors' Power of Attorney to sign Amendments to this
Registration Statement, dated Oct. 14, 1993, filed
electronically as Exhibit 17(a) to Post-Effective
Amendment No. 77 is hereby incorporated by reference.
17(b). Officers' Power of Attorney to sign Amendments to this
Registration Statement, dated June 1, 1993, filed
electronically as Exhibit 17(b) to Post-Effective
Amendment No. 77 is hereby incorporated by reference.
Item 25. Persons Controlled by or Under Common Control with
Registrant.
None
Item 26. Number of Holders of Securities.
(1) (2)
Number of Record
Holders as of
Title of Class Jan. 14, 1994
Common Stock 47,898
<PAGE>
PAGE 84
Item 27. Indemnification
The Articles of Incorporation of the registrant provide that the
Fund shall indemnify any person who was or is a party or is
threatened to be made a party, by reason of the fact that she or he
is or was a director, officer, employee or agent of the Fund, or is
or was serving at the request of the Fund as a director, officer,
employee or agent of another company, partnership, joint venture,
trust or other enterprise, to any threatened, pending or completed
action, suit or proceeding, wherever brought, and the Fund may
purchase liability insurance and advance legal expenses, all to the
fullest extent permitted by the laws of the State of Minnesota, as
now existing or hereafter amended. The By-laws of the registrant
provide that present or former directors or officers of the Fund
made or threatened to be made a party to or involved (including as
a witness) in an actual or threatened action, suit or proceeding
shall be indemnified by the Fund to the full extent authorized by
the Minnesota Business Corporation Act, all as more fully set forth
in the By-laws filed as an exhibit to this registration statement.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Any indemnification hereunder shall not be exclusive of any other
rights of indemnification to which the directors, officers,
employees or agents might otherwise be entitled. No
indemnification shall be made in violation of the Investment
Company Act of 1940.
<PAGE>
<PAGE> 1
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)
Directors and officers of IDS Financial Corporation who are
directors and/or officers of one or more other companies:
Ronald G. Abrahamson, Vice President--Field Administration
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Manager Support
Minneapolis, MN 55440
Jerome R. Amundson, Vice President and Controller--Mutual Funds
Operations
IDS Financial Services Inc. Vice President and
IDS Tower 10 Controller-Mutual Funds
Minneapolis, MN 55440 Operations
Douglas A. Alger, Vice President--Compensation and Benefits
IDS Financial Services Inc. Vice President-
IDS Tower 10 Compensation and
Minneapolis, MN 55440 Benefits
Peter J. Anderson, Director, Senior Vice President--Advisory Group
and Equity Management
IDS Securities Corporation Executive Vice President-
IDS Advisory Group Inc. Investments
IDS Tower 10 Director, President and
Minneapolis, MN 55440 Chairman of the Board
IDS Capital Holdings Inc. Director and President
IDS International, Inc. Director, Chairman of the
Board and Executive Vice
President
IDS Financial Services Inc. Senior Vice President-
Advisory Group and Equity
Management
IDS Fund Management Limited Director
NCM Capital Management Group, Inc. Director
2 Mutual Plaza
501 Willard Street
Durham, NC 27701
<PAGE>
<PAGE> 2
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Kent L. Ashton, Vice President--Group Management Office, Banking
and Certificates Group
IDS Financial Services Inc. President-Group Management
IDS Tower 10 Office, Banking and
Minneapolis, MN 55440 Certificates
Timothy V. Bechtold, Vice President--Insurance Product Development
IDS Financial Services Inc. Vice President-Insurance
IDS Tower 10 Product Development
Minneapolis, MN 55440
IDS Life Insurance Company Vice President-Insurance
Product Development
John D. Begley, Vice President--Mid-Central Region
IDS Insurance Agency of Alabama Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Arkansas Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of Massachusetts Vice President-Mid-Central
Inc. Region
IDS Insurance Agency of New Mexico Inc. Vice President-Mid-Central
Region
IDS Insurance Agency of North Carolina Vice President-Mid-Central
Inc. Region
IDS Insurance Agency of Ohio Inc. Vice President-Mid-Central
Inc. Region
IDS Insurance Agency of Wyoming Inc. Vice President-Mid-Central
Region
IDS Financial Services Inc. Vice President-
IDS Tower 10 Mid-Central Region
Minneapolis, MN 55440
Carl E. Beihl, Vice President--Strategic Planning and Architecture
IDS Financial Services Inc. Vice President,
IDS Tower 10 Strategic Planning
Minneapolis, MN 55440 and Architecture
Alan F. Bignall, Vice President--Financial Planning Systems
IDS Financial Services Inc. Vice President-
IDS Tower 10 Product Systems
Minneapolis, MN 55440 Services
<PAGE>
<PAGE> 3
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Brent L. Bisson, Vice President--Northwest Region
IDS Financial Services Inc. Vice President-
IDS Tower 10 Northwest Region
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Northwest Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Northwest Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Northwest Region
IDS Insurance Agency of New Mexico Vice President-
Inc. Northwest Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Northwest Region
IDS Insurance Agency of Ohio Inc. Vice President-
Northwest Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Northwest Region
Thomas J. Brakke, Vice President--Investment Services and
Investment Research
IDS Financial Corporation Vice President-Investment
IDS Tower 10 Services and Investment
Minneapolis, MN 55440 Research
Karl J. Breyer, Director, Senior Vice President and General Counsel
IDS Financial Services Inc. Senior Vice President
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
IDS Aircraft Services Corporation Director and President
John L. Burbidge, Vice President--Government Relations
IDS Life Insurance Company
IDS Financial Services Inc. Vice President-
IDS Tower 10 Customer Relations
Minneapolis, MN 55440
<PAGE>
<PAGE> 4
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Harold E. Burke, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Orison Y. Chaffee III, Vice President--Field Real Estate
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James Choat, Senior Region Vice President
IDS Financial Services Inc. Senior Region Vice
IDS Tower 10 President
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President--North
Central Region
IDS Insurance Agency of Arkansas Inc. Vice President--North
Central Region
IDS Insurance Agency of Massachusetts Vice President--North
Inc. Central Region
IDS Insurance Agency of New Mexico Vice President--North
Inc. Central Region
IDS Insurance Agency of North Carolina Vice President--North
Inc. Central Region
IDS Insurance Agency of Ohio Inc. Vice President--North
Central Region
IDS Insurance Agency of Wyoming Inc. Vice President-- North
Central Region
Kenneth J. Ciak, Vice President and General Manager--IDS Property
Casualty
IDS Property Casualty Insurance Co. Director, President
1 WEG Blvd
DePere, Wisconsin 54115
IDS Financial Services Inc. Vice President and General
Manager-IDS Property
Casualty
<PAGE>
<PAGE> 5
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Roger C. Corea, Vice President--Northeast Region
IDS Financial Services Inc. Vice President-
IDS Tower 10 Northeast Region
Minneapolis, MN 55440
IDS Life Insurance Co. of New York Director
Box 5144
Albany, NY 12205
IDS Insurance Agency of Alabama Inc. Vice President -
Northeast Region
IDS Insurance Agency of Arkansas Inc. Vice President -
Northeast Region
IDS Insurance Agency of Massachusetts Vice President -
Inc. Northeast Region
IDS Insurance Agency of New Mexico Inc. Vice President -
Northeast Region
IDS Insurance Agency of North Carolina Vice President -
Inc. Northeast Region
IDS Insurance Agency of Ohio, Inc. Vice President -
Northeast Region
IDS Insurance Agency of Wyoming Inc. Vice President -
Northeast Region
Kevin F. Crowe, Vice President--Field Management Development
IDS Financial Services Inc. Vice President - Field
IDS Tower 10 Marketing Development
Minneapolis, MN 55440
Alan R. Dakay, Vice President--Institutional Insurance Marketing
IDS Financial Services Inc. Vice President -
IDS Tower 10 Institutional Insurance
Minneapolis, MN 55440 Marketing
American Enterprise Life Insurance Co. Director
IDS Life Insurance Company Vice President -
Institutional Insurance
Marketing
<PAGE>
<PAGE> 6
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
William F. Darland, Vice President--South Central Region
IDS Insurance Agency of Alabama Inc. Vice President-
South Central Region
IDS Insurance Agency of Arkansas Inc. Vice President -
South Central Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. South Central Region
IDS Insurance Agency of New Mexico Inc. Vice President-
South Central Region
IDS Insurance Agency of North Carolina Vice President-
Inc. South Central Region
IDS Insurance Agency of Ohio Inc. Vice President-
South Central Region
IDS Insurance Agency of Wyoming Inc. Vice President-
South Central Region
IDS Financial Services Inc. Vice President-
IDS Tower 10 South Central Region
Minneapolis, MN 55440
Michael P. Ducar, Vice President--Investment Services
IDS Financial Services Inc. Vice President-
IDS Tower 10 Investment Services
Minneapolis, MN 55440
William H. Dudley, Director, Executive Vice President--Investment
and Brokerage Operations
IDS Financial Services Inc. Director, Executive Vice
IDS Tower 10 President-Investment and
Minneapolis, MN 55440 Brokerage Operations
IDS Capital Holdings Inc. Director
IDS Futures Corporation Director
IDS Advisory Group Inc. Director
IDS Futures III Corporation Director
IDS International, Inc. Director
IDS Securities Services Chairman, President and
Chief Executive Officer
IDS Securities Corporation Director, Chairman of the
Board, President and
Chief Executive Officer
IDS Life Insurance Company Vice President
American Enterprise Investment Director
Services Inc.
American Enterprise Investment Director
Services Inc.
<PAGE>
<PAGE> 7
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Roger S. Edgar, Director, Senior Vice President--Information
Systems
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Information Systems
Minneapolis, MN 55440
Gordon L. Eid, Director, Senior Vice President and Deputy General
Counsel
IDS Insurance Agency of Alabama Inc. Director, Vice President
IDS Insurance Agency of Arkansas Inc. Director, Vice President
IDS Insurance Agency of Massachusetts Director, Vice President
Inc.
IDS Insurance Agency of New Mexico Inc. Director, Vice President
IDS Insurance Agency of North Carolina Director, Vice President
Inc.
IDS Insurance Agency of Ohio Inc. Director, Vice President
IDS Insurance Agency of Wyoming Inc. Director, Vice President
IDS Real Estate Services, Inc. Vice President
IDS Financial Services Inc. Senior Vice President and
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Investors Syndicate Development Corp. Director
Edwin W. Elder III, Vice President--Operations/IDS Property
Casualty
IDS Property Casualty Insurance Co. Vice President-Operations
1 WEG Blvd.
Depere, WI 54115
Elizabeth A. Elder, Vice President--Systems Services
IDS Financial Services Inc. Vice President-Systems
IDS Tower 10 Services
Minneapolis, MN 55440
Mark A. Ernst, Vice President--Tax and Business Services
IDS Financial Services Inc. Vice President-Tax and
IDS Tower 10 Business Services
Minneapolis, MN 55440
IDS Tax and Business Services Vice President-Tax and
Business Services
<PAGE>
<PAGE> 8
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Gordon M. Fines, Vice President--Mutual Fund Equity Investments
IDS Financial Services Inc. Vice President-
Mutual Fund Equity
Investments
IDS International Inc. Vice President and
Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS Tower 10
Minneapolis, MN 55440
Louis C. Fornetti, Director, Senior Vice President--Corporate
Controller
IDS Financial Services Inc. Senior Vice President-
Corporate Controller
IDS Property Casualty Insurance Co. Director; Vice President
IDS Tower 10
Minneapolis, MN 55440
American Enterprise Investment Vice President
Services Inc.
IDS Capital Holdings Inc. Director and Senior
Vice President
IDS Certificate Company Vice President
IDS Insurance Agency of Alabama Inc. Vice President
IDS Insurance Agency of Arkansas Inc. Vice President
IDS Insurance Agency of Massachusetts Vice President
Inc.
IDS Insurance Agency of New Mexico Inc. Vice President
IDS Insurance Agency of North Carolina Vice President
Inc.
IDS Insurance Agency of Ohio Inc. Vice President
IDS Insurance Agency of Wyoming Inc. Vice President
IDS Life Series Fund, Inc. Vice President
IDS Life Variable Annuity Funds A&B Vice President
IDS Real Estate Services, Inc. Vice President
IDS Securities Corporation Vice President
Investors Syndicate Development Corp. Vice President
<PAGE>
<PAGE> 9
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Douglas L. Forsberg, Vice President--Securities Services
IDS Financial Services Inc. Vice President-
Securities Services
IDS Securities Services Vice President and
General Manager
American Enterprise Investment Director, President and
Services Inc. Chief Executive Officer
Robert G. Gilbert, Vice President--Real Estate
IDS Financial Services Inc. Vice President-
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden, Vice President--Field Compensation Development
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Compensation
Minneapolis, MN 55440
Harvey Golub, Director
American Express Company Director and President
American Express Tower
World Financial Center
New York, New York 10285
American Express Travel Chairman and Chief
Related Services Company, Inc. Executive Officer
IDS Bond Fund, Inc. Director
IDS California Tax-Exempt Trust Trustee
IDS Discovery Fund, Inc. Director
IDS Equity Plus Fund, Inc. Director
IDS Extra Income Fund, Inc. Director
IDS Federal Income Fund, Inc. Director
IDS Global Series, Inc. Director
IDS Growth Fund, Inc. Director
IDS High Yield Tax-Exempt Fund, Inc. Director
IDS International Fund, Inc. Director
IDS Investors Series, Inc. Director
IDS Managed Retirement Fund, Inc. Director
IDS Market Advantage Series, Inc. Director
IDS Money Market Series, Inc. Director
IDS New Dimensions Fund, Inc. Director
<PAGE>
<PAGE> 10
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Precious Metals Fund, Inc. Director
IDS Progressive Fund, Inc. Director
IDS Selective Fund, Inc. Director
IDS Special Tax-Exempt Series Trust Trustee
IDS Stock Fund, Inc. Director
IDS Strategy Fund, Inc. Director
IDS Tax-Exempt Bond Fund, Inc. Director
IDS Tax-Free Money Fund, Inc. Director
IDS Utilities Income Fund, Inc. Director
IDS Life Capital Resource Fund, Inc. Director
IDS Life Special Income Fund, Inc. Director
IDS Life Managed Fund, Inc. Director
IDS Life Moneyshare Fund, Inc. Director
National Computer Systems, Inc. Director
11000 Prairie Lakes Drive
Minneapolis, MN 55440
Morris Goodwin Jr., Vice President and Corporate Treasurer
American Express Minnesota Foundation Director, Vice President
and Treasurer
American Enterprise Investment Vice President and
Services Inc. Treasurer
IDS Aircraft Services Corporation Vice President and
Treasurer
IDS Advisory Group Inc. Vice President and
Treasurer
IDS Cable Corporation Vice President and
Treasurer
IDS Cable II Corporation Vice President and
Treasurer
IDS Capital Holdings Inc. Vice President and
Treasurer
IDS Certificate Company Vice President and
Treasurer
IDS Insurance Agency of Alabama Inc. Vice President and
Treasurer
IDS Insurance Agency of Arkansas Inc. Vice President and
Treasurer
IDS Insurance Agency of Massachusetts Vice President and
Inc. Treasurer
IDS Insurance Agency of New Mexico Inc. Vice President and
Treasurer
IDS Insurance Agency of North Carolina Vice President and
Inc. Treasurer
IDS Insurance Agency of Ohio Inc. Vice President and
Treasurer
<PAGE>
<PAGE> 11
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Insurance Agency of Wyoming Inc. Vice President and
Treasurer
IDS International, Inc. Vice President and
Treasurer
IDS Life Series, Inc. Vice President and
Treasurer
IDS Life Variable Annuity Funds A&B Vice President and
Treasurer
IDS Management Corporation Vice President and
Treasurer
IDS Partnership Leasing Corporation Vice President and
Treasurer
IDS Partnership Services Corporation Vice President and
Treasurer
IDS Plan Services of California, Inc. Vice President and
Treasurer
IDS Property Casualty Insurance Co. Vice President and
Treasurer
IDS Real Estate Services, Inc Vice President and
Treasurer
IDS Real Estate Corporation Vice President and
Treasurer
IDS Realty Corporation Vice President and
Treasurer
IDS Securities Corporation Vice President and
Treasurer
Investors Syndicate Development Corp. Vice President and
Treasurer
Peninsular Properties, Inc. Vice President and
Treasurer
IDS Plan Services of California, Inc. Vice President and
Treasurer
IDS Financial Services Inc. Vice President and
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Sloan Financial Group, Inc. Director
2 Mutual Plaza
501 Willard Street
Durham, NC 27701
NCM Capital Management Group, Inc. Director
2 Mutual Plaza
501 Willard Street
Durham, NC 27701
<PAGE>
<PAGE> 12
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Sara J. Grady, Vice President--Human Resources and Organizational
Development
IDS Financial Services Inc. Vice President-Human
IDS Tower 10 Resources and
Minneapolis, MN 55440 Organization Development
David A. Hammer, Vice President and Marketing Controller
IDS Financial Services Inc. Vice President and
IDS Tower 10 Marketing Controller
Minneapolis, MN 55440
IDS Plan Services of California, Inc. Director
Robert L. Harden, Vice President--Mid-Atlantic Region
IDS Insurance Agency of Alabama Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Mid Atlantic Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Mid Atlantic Region
IDS Insurance Agency of Ohio Inc. Vice President-
Mid Atlantic Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Mid Atlantic Region
IDS Financial Services Inc. Vice President-
IDS Tower 10 Mid Atlantic Region
Minneapolis, MN 55440
Lorraine R. Hart, Vice President--Insurance Investments
IDS Financial Services Inc. Vice President-Insurance
IDS Tower 10 Investments
Minneapolis, MN 55440
American Enterprise Life Vice President-Investments
Insurance Company
IDS Life Insurance Company Vice President-Investments
<PAGE>
<PAGE> 13
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Mark S. Hays, Vice President--Senior Portfolio Manager, IDS
International
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager, IDS
Minneapolis, MN 55440 International
IDS Fund Management Limited Director
IDS International, Inc. Senior Vice President
Robert H. Healy, Vice President--Senior Portfolio Manager
IDS Securities Corporation Vice President and Chief
Investment Officer
IDS Securities Services Exec. Vice President and
Chief Investment Officer
IDS Advisory Group Inc. Senior Vice President
IDS Financial Services Inc. Vice President-
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
James G. Hirsh, Vice President and Assistant General Counsel
IDS Insurance Agency of Alabama Inc. Vice President
IDS Insurance Agency of Arkansas Inc. Vice President
IDS Insurance Agency of Massachusetts Vice President
Inc.
IDS Insurance Agency of New Mexico Inc. Vice President
IDS Insurance Agency of North Carolina Vice President
Inc.
IDS Insurance Agency of Ohio Inc. Vice President
IDS Insurance Agency of Wyoming Inc. Vice President
IDS Financial Services Inc. Vice President and
Assistant General Counsel
IDS Securities Services Vice President and General
Counsel
IDS Securities Corporation Director, Vice President
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Raymond E. Hirsch, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
<PAGE>
<PAGE> 14
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Kevin P. Howe, Vice President--Government and Customer Relations
IDS Financial Services Inc. Vice President-
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations
American Enterprise Investment Vice President and
Services Inc. Compliance Officer
David R. Hubers, Director; Senior Vice President--Finance, and
Chief Financial Officer
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Finance and Chief
Minneapolis, MN 55440 Financial Officer
IDS Bank & Trust Director
IDS Aircraft Services Corporation Director and Vice President
IDS Capital Holdings Inc. Director and Senior
Vice President
IDS Certificate Company Director
IDS Deposit Corp. Director
IDS Life Insurance Company Director
IDS Life Insurance Company of New York Director
IDS Property Casualty Insurance Co. Director and Chairman of
the Board
Peninsular Properties, Inc. Director and Chairman of
Board
Marietta Johns, Director; Senior Vice President--ACUMA Ltd.
ACUMA Ltd. Senior Vice President
ACUMA House
The Glanty, Egham
Surrey TW 20 9 AT
UK
IDS Financial Services Inc. Senior Region Vice
President
IDS Insurance Agency of Alabama Inc. Vice President-
Southwest Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Southwest Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Southwest Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Southwest Region
IDS Insurance Agency of North Carolina Vice President-
Southwest Region
IDS Insurance Agency of Ohio Inc. Vice President-
Southwest Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Southwest Region
<PAGE>
<PAGE> 15
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Douglas R. Jordal, Vice President--Taxes
IDS Financial Services Inc. Vice President-Taxes
IDS Tower 10
Minneapolis, MN 55440
IDS Aircraft Services Corporation Vice President
Craig A. Junkins, Vice President--Financial Planning and Marketing
IDS Financial Services Inc. Vice President-Financial
IDS Tower 10 Planning and Marketing
Minneapolis, MN 55440
Susan D. Kinder, Director and Senior Vice President--Human
Resources
IDS Financial Services Inc. Director, Senior Vice
IDS Tower 10 President-Human Resources
Minneapolis, MN 55440
Richard W. Kling, Vice President--Insurance Marketing and Products
IDS Financial Services Inc. Vice President-
Insurance Marketing and
Products
IDS Insurance Agency of Alabama Inc. Director; Executive Vice
President
IDS Insurance Agency of Arkansas Inc. Director; Executive Vice
President
IDS Insurance Agency of Massachusetts Director; Executive Vice
Inc. President
IDS Insurance Agency of New Mexico Inc. Director; Executive Vice
President
IDS Insurance Agency of North Carolina Director; Executive Vice
Inc. President
IDS Insurance Agency of Ohio Inc. Director; Executive Vice
President
IDS Insurance Agency of Wyoming Inc. Director; Executive Vice
President
IDS Life Series Fund, Inc. Director
IDS Life Variable Annuity Funds A&B Member of Board of Managers
IDS Life Insurance Company Director; Executive Vice
IDS Tower 10 President-Marketing and
Minneapolis, MN 55440 Products
IDS Life Insurance Company Director
of New York
P.O. Box 5144
Albany, NY 12205
<PAGE>
<PAGE> 16
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Harold Knutson, Vice President--System Services
IDS Financial Services Inc. Vice President--
IDS Tower 10 System Services
Minneapolis, MN 55440
Paul F. Kolkman, Vice President--Corporate Actuary
IDS Financial Services Inc. Vice President-
Corporate Actuary
IDS Life Insurance Company Director; Vice President-
Finance
IDS Life Series Fund, Inc. Vice President and Chief
IDS Tower 10 Actuary
Minneapolis, MN 55440
Claire Kolmodin, Vice President--Service Quality
IDS Financial Services Inc. Vice President-
IDS Tower 10 Service Quality
Minneapolis, MN 55440
Christopher Kudrna, Vice President--Systems and Technology
Development
IDS Life Insurance Company Director; Vice President,
Systems and Technology
Development
IDS Financial Services Inc. Vice President-Systems and
IDS Tower 10 Technology Development
Minneapolis, MN 55440
Steven C. Kumagai, Director and Senior Vice President--Associate
General Sales Manager
IDS Financial Services Inc. Director; Senior Vice
IDS Tower 10 President-Associate
Minneapolis, MN 55440 General Sales Manager
Edward Labenski, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-
Senior Portfolio
Manager
IDS Advisory Group Inc. Senior Vice President
IDS Tower 10
Minneapolis, MN 55440
<PAGE>
<PAGE> 17
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Peter L. Lamaison, Vice President--IDS International Division
IDS Financial Services Inc. Vice President-
IDS International
Division
IDS Fund Management Limited Director and Chairman of
the Board
IDS International, Inc. Director; President and
IDS Tower 10 Chief Executive Officer
Minneapolis, MN 55440
Kurt A. Larson, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
Ryan R. Larson, Vice President--Annuity Product Development
IDS Financial Services Inc. Vice President-
Annuity Product
Development
IDS Life Insurance Company Vice President,
IDS Tower 10 Annuity Product
Minneapolis, MN 55440 Development
Peter A. Lefferts, Director; Senior Vice President--Banking and
Certificates
IDS Deposit Corp. Director, President
and Chief Executive Officer
IDS Bank & Trust Director, President and
Chief Executive Officer
Investors Syndicate Development Corp. Director, Chairman of the
Board and President
IDS Plan Services of California, Inc. Director
IDS Sales Support Inc. Director
IDS Certificate Company Director, Chairman of the
IDS Tower 10 Board and President
Minneapolis, MN 55440
<PAGE>
<PAGE> 18
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Douglas A. Lennick, Director; Senior Vice President and General
Sales Manager
IDS Financial Services Inc. Director; Senior Vice
IDS Tower 10 President and General Sales
Minneapolis, MN 55440 Manager
Dickson W. Lewis, Vice President--Consumer and Business Marketing
IDS Financial Services Inc. Vice President-
IDS Tower 10 Consumer and Business
Minneapolis, MN 55440 Marketing
Mary Malevich, Vice President--Senior Portfolio Manager
IDS Financial Services Inc. Vice President-
Senior Portfolio
Manager
IDS International Inc. Vice President and
Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS Tower 10
Minneapolis, MN 55440
James M. McAlear, Jr., Vice President and Senior Portfolio Manager
IDS International
IDS Fund Management Limited Director
IDS Financial Services Inc. Vice President and
Senior Portfolio
Manager, IDS
International
IDS International, Inc. Senior Vice President
IDS Tower 10
Minneapolis, MN 55440
William J. McKinney, Vice President--Field Management Support
IDS Financial Services Inc. Vice President-Field
IDS Tower 10 Management Support
Minneapolis, MN 55440
<PAGE>
<PAGE> 19
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Thomas Medcalf, Vice President--Senior Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
William C. Melton, Vice President-Chief Economist
IDS Financial Services Inc. Vice President-
IDS Tower 10 Chief Economist
Minneapolis, MN 55440
Earlon L. Milbrath, Vice President--U.K. Venture
IDS Financial Services Inc. Vice President-
IDS Tower 10 U.K. Venture
Minneapolis, MN 55440
Janis E. Miller, Vice President--Mutual Funds Products and
Marketing
IDS Financial Services Inc. Vice President-Mutual Funds
IDS Tower 10 Products and Marketing
Minneapolis, MN 55440
James A. Mitchell, Director; Senior Vice President--Insurance
Operations
American Enterprise Life Insurance Director and Chairman of
Company the Board
P.O. Box 534
Minneapolis, MN 55440
IDS Plan Services of California, Inc. Director
IDS Property Casualty Insurance Co. Director
IDS Insurance Agency of Alabama Inc. Director and President
IDS Insurance Agency of Arkansas Inc. Director and President
IDS Insurance Agency of Massachusetts Director and President
Inc.
IDS Insurance Agency of New Mexico Inc. Director and President
IDS Insurance Agency of North Carolina Director and President
Inc.
IDS Insurance Agency of Ohio Inc. Director and President
IDS Insurance Agency of Wyoming Inc. Director and President
<PAGE>
<PAGE> 20
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Life Insurance Company Director and President
IDS Tower 10
Minneapolis, MN 55440
IDS Financial Services Inc. Senior Vice President-
Insurance Operations
IDS Life Series Fund, Inc. Director and President
IDS Life Variable Annuity Funds A Member of the Board of
and B Managers, Chairman and
President
IDS Life Capital Resource Fund, Inc. Director and Executive
Vice President
IDS Life Special Income Fund, Inc. Director and Executive
Vice President
IDS Life Managed Fund, Inc. Director and Executive
Vice President
IDS Life Moneyshare Fund, Inc. Director and Executive
IDS Tower 10 Vice President
Minneapolis, MN 55440
IDS Life Insurance Company Director and Chairman
of New York of the Board
P.O. Box 5144
Albany, NY 12205
Pamela J. Moret, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
IDS Tower 10 Assistant General Counsel
Minneapolis, MN 55440
Robert J. Neis, Vice President--EDP Services
IDS Financial Services Inc. Vice President-
IDS Tower 10 EDP Services
Minneapolis, MN 55440
<PAGE>
<PAGE> 21
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Vernon F. Palen, Vice President--Rocky Mountain Region
IDS Financial Services Inc. Vice President-Rocky
IDS Tower 10 Mountain Region
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Rocky Mountain Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Rocky Mountain Region
IDS Insurance Agency of Ohio Inc. Vice President-
Rocky Mountain Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Rocky Mountain Region
James R. Palmer, Vice President--Insurance Operations
IDS Financial Services Inc. Vice President-
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
IDS Life Insurance Company Vice President-Taxes
George M. Perry, Vice President--Corporate Strategy and Development
IDS Financial Services Inc. Vice President-
IDS Tower 10 Corporate Strategy
Minneapolis, MN 55440 and Development
IDS Property Casualty Insurance Co. Director
IDS Insurance Agency of Alabama Inc. Director and Executive
Vice President
IDS Insurance Agency of Arkansas Inc. Director and Executive
Vice President
IDS Insurance Agency of Massachusetts Director and Executive
Inc. Vice President
IDS Insurance Agency of New Mexico Inc. Director and Executive
Inc. Vice President
IDS Insurance Agency of North Carolina Director and Executive
Inc. Vice President
IDS Insurance Agency of Ohio Inc. Director and Executive
Vice President
IDS Insurance Agency of Wyoming Inc. Director and Executive
Vice President
<PAGE>
<PAGE> 22
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Susan B. Plimpton, Vice President -- American Express Marketing
IDS Financial Services Inc. Vice President--
IDS Tower 10 American Express Marketing
Minneapolis, MN 55440
Ronald W. Powell, Vice President and Assistant General Counsel
IDS Realty Corporation Vice President and
Secretary
IDS Financial Services Inc. Vice President and
Assistant General Counsel
IDS Cable Corporation Vice President and
Assistant Secretary
IDS Cable II Corporation Vice President and
Assistant Secretary
IDS Management Corporation Vice President and
Assistant Secretary
IDS Partnership Leasing Corporation Vice President and
Assistant Secretary
IDS Plan Services of California, Inc. Vice President and
Assistant Secretary
IDS Realty Corporation Vice President and
Assistant Secretary
IDS Life Series Fund, Inc. Secretary
IDS Life Variable Annuity Funds Secretary
A and B
IDS Partnership Services Corporation Vice President and
IDS Tower 10 Assistant Secretary
Minneapolis, MN 55440
James M. Punch, Vice President--TransAction Services
IDS Financial Services Inc. Vice President-Trans
IDS Tower 10 Action Services
Minneapolis, MN 55440
Frederick C. Quirsfeld, Vice President--Taxable Mutual Fund
Investments
IDS Financial Services Inc. Vice President--
IDS Tower 10 Taxable Mutual Fund
Minneapolis, MN 55440 Investments
<PAGE>
<PAGE> 23
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
James D. Robinson III, Director
American Express Company Director, Chairman,
American Express Tower Chief Executive Officer
World Financial Center Chief Quality Officer
New York, New York 10285
Union Pacific Corporation Director
The Business Council of New York Director
State, Inc.
Advisory Committee for Trade Policy Chairman
and Negotiations
New York City Partnership Chairman
New York Chamber of Commerce Chairman
and Industry
The Business Round Table Co-Chairman
Board of Governors Vice Chairman
United Way of America Vice Chairman
Memorial Hospital for Cancer Member, Board of Managers
and Allied Diseases
Council on Foreign Relations Member, Board of Directors
The Brookings Institution Member, Board of Trustees
Japan Society Member, Board of Directors
American Express Bank Ltd. Director
Shearson Lehman Holdings Inc. Director
Bristol-Meyers Squibb Company Director
345 Park Avenue
New York, NY
Coca-Cola Company Director
310 North Avenue, NW
Atlanta, GA 30313
Memorial Sloane-Kettering Chairman Board of Managers
Cancer Center Chairman Board of Overseers
New York, NY
Roger B. Rogos, Vice President--Great Lakes Region
IDS Insurance Agency of Alabama Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Great Lakes Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Great Lakes Region
<PAGE>
<PAGE> 24
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
IDS Insurance Agency of Ohio Inc. Vice President-
Great Lakes Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Great Lakes Region
IDS Financial Services Inc. Vice President-Great Lakes
IDS Tower 10 Region
Minneapolis, MN 55440
ReBecca K. Roloff, Vice President--Insurance Operations
IDS Life Insurance Company Director; Executive Vice
IDS Tower 10 President-Insurance
Minneapolis, MN 55440 Operations
IDS Financial Services Inc. Vice President-Insurance
Operations
Robert A. Rudell, Vice President--Sales and Marketing, IDS
Institutional Marketing
IDS Financial Services Inc. Vice President-Sales and
IDS Tower 10 Marketing, IDS
Minneapolis, Mn 55440 Institutional Marketing
John P. Ryan, Vice President and General Auditor
IDS Financial Services Inc. Vice President and General
IDS Tower 10 Auditor
Minneapolis, MN 55440
James H. Sadlowske, Vice President--System Services
IDS Financial Services Inc. Vice President-
IDS Tower 10 System Services
Minneapolis, MN 55440
<PAGE>
<PAGE> 25
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Erven A. Samsel, Senior Region Vice President
IDS Financial Services Inc. Senior Region Vice
IDS Tower 10 President
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
New England Region
IDS Insurance Agency of Arkansas Inc. Vice President-
New England Region
IDS Insurance Agency of Massachusetts Vice President-
New England Region
IDS Insurance Agency of New Mexico Inc. Vice President-
New England Region
IDS Insurance Agency of North Carolina Vice President-
New England Region
IDS Insurance Agency of Ohio Inc. Vice President-
New England Region
IDS Insurance Agency of Wyoming Inc. Vice President-
New England Region
Carol A. Sander, Director, Senior Vice President--Communications
American Express Minnesota Foundation Director
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Communications
Minneapolis, MN 55440
R. Reed Saunders, Director; Senior Vice President-Financial
Planning and Marketing
IDS Property Casualty Insurance Co. Director
IDS Financial Services Inc. Director and Senior Vice
IDS Tower 10 President-Financial
Minneapolis, MN 55440 Planning and Marketing
Stuart A. Sedlacek, Vice President--Quantitative Investment
Management
IDS Financial Services Inc. Vice President-
IDS Tower 10 Quantitative
Minneapolis, MN 55440 Investment Management
<PAGE>
<PAGE> 26
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
F. Dale Simmons, Vice President--Senior Portfolio Manager,
Insurance Investments
IDS Financial Services Inc. Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440 Insurance Investments
IDS Partnership Services Corporation Vice President
IDS Real Estate Services Inc. Vice President
IDS Realty Corporation Vice President
Peninsular Properties, Inc. Director and President
Julian W. Sloter, Vice President--Southeast Region
IDS Insurance Agency of Alabama Inc. Vice President-
Southeast Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Southeast Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Southeast Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Southeast Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Southeast Region
IDS Insurance Agency of Ohio Inc. Vice President-
Southeast Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Southeast Region
IDS Financial Services Inc. Vice President--Southeast
IDS Tower 10 Region
Minneapolis, MN 55440
William A. Smith, Director; Vice President--Finance and CFO/UK
IDS Financial Corporation Vice President-
IDS Tower 10 Finance and CFO/UK
Minneapolis, MN 55440
IDS Life Capital Resource Fund, Inc. Treasurer
IDS Life Special Income Fund, Inc. Treasurer
IDS Life Managed Fund, Inc. Treasurer
IDS Life Moneyshare Fund, Inc. Treasurer
James B. Solberg, Vice President--Advanced Financial Planning
IDS Financial Services Inc. Vice President-
IDS Tower 10 Advanced Financial Planning
Minneapolis, MN 55440
<PAGE>
<PAGE> 27
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
James W. Sowles, Vice President--Certificate Administration
IDS Financial Services Inc. Vice President-
Certificate Administration
IDS Certificate Company Vice President-
IDS Tower 10 Administration
Minneapolis, MN 55440
Bridget Sperl, Vice President--Human Resources Management Services
IDS Financial Services Inc. Vice President-Human
IDS Tower 10 Resources Management
Minneapolis, MN 55440
Jeffrey E. Stiefler, Director, President and Chief Executive
Officer
IDS Financial Services Inc. Chairman, President and
IDS Tower 10 Chief Executive Officer
Minneapolis, MN 55440
American Express Director
Minnesota Foundation
IDS Advisory Group Inc. Director
IDS Bank & Trust Director
IDS Capital Holdings Inc. Director
IDS Plan Services of California, Inc. Director and Chairman of
the Board
IDS Certificate Company Director
IDS International, Inc. Director
IDS Life Insurance Company Director and Chairman of
the Board
IDS Property and Casualty Insurance Director
Company
Lois A. Stilwell, Vice President--Sales Training and Communications
IDS Financial Services Inc. Vice President-
IDS Tower 10 Sales Training and
Minneapolis, MN 55440 Communications
<PAGE>
<PAGE> 28
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
William A. Stoltzmann, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
Assistant General Counsel
IDS Life Insurance Company Vice President, General
IDS Tower 10 Counsel and Secretary
Minneapolis, MN 55440
IDS Life Variable Annuity Funds General Counsel and
A and B Assistant Secretary
IDS Life Series Fund, Inc. General Counsel and
Assistant Secretary
American Enterprise Life Insurance Director, Vice President,
Company General Counsel
P.O. Box 534 and Secretary
Minneapolis, MN 55440
James J. Strauss, Vice President--Corporate Planning and Analysis
IDS Financial Services Inc. Vice President-
IDS Tower 10 Corporate Planning and
Minneapolis, MN 55440 Analysis
Fenton R. Talbott, Director
ACUMA Ltd. President and Chief
ACUMA House Executive Officer
The Glanty, Egham
Surrey TW 20 9 AT
UK
Neil Taylor, Vice President--National Sales/UK
IDS Financial Services Inc. Vice President - National
IDS Tower 10 Sales/UK
Minneapolis, MN 55440
<PAGE>
<PAGE> 29
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
John R. Thomas, Director; Senior Vice President--Mutual Funds
Operations
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Mutual Funds Operations
Minneapolis, MN 55440
IDS Blue Chip Advantage Fund Director
IDS Bond Fund, Inc. Director
IDS California Tax-Exempt Trust Trustee
IDS Cash Management Fund, Inc. Director
IDS Discovery Fund, Inc. Director
IDS Diversified Equity Income Fund Director
IDS Equity Plus Fund, Inc. Director
IDS Extra Income Fund, Inc. Director
IDS Federal Income Fund, Inc. Director
IDS Global Bond Fund, Inc. Director
IDS Global Growth Fund Director
IDS Growth Fund, Inc. Director
IDS High Yield Tax-Exempt Fund, Inc. Director
IDS Managed Retirement Fund, Inc. Director
IDS Market Advantage Series, Inc. Director
IDS Mutual Director
IDS New Dimensions Fund, Inc. Director
IDS Planned Investment Account Director
IDS Precious Metals Fund, Inc. Director
IDS Progressive Fund, Inc. Director
IDS Selective Fund, Inc. Director
IDS Special Tax-Exempt Series Trust Trustee
IDS Stock Fund, Inc. Director
IDS Strategy Fund, Inc. Director
IDS Tax-Exempt Bond Fund, Inc. Director
IDS Tax-Free Money Fund, Inc. Director
IDS Utilities Income Fund, Inc. Director
American Express Minnesota Foundation Director
IDS Cable Corporation Director
IDS Cable II Corporation Director
IDS Futures Corporation Director and President
IDS Futures III Corporation Director and President
IDS Management Corporation Director and President
IDS Partnership Leasing Corporation Director and President
IDS Partnership Services Corporation Director
IDS Realty Corporation Director and President
<PAGE>
<PAGE> 30
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Melinda S. Urion, Vice President--Insurance Controller
IDS Financial Corporation Vice President-Insurance
IDS Tower 10 Controller
Minneapolis, MN 55440
IDS Life Insurance Company Director, Vice President,
Controller and Treasurer
IDS Life Series Fund, Inc. Vice President and
Controller
American Enterprise Life Vice President, Controller
Insurance Company and Treasurer
Wesley W. Wadman, Vice President--Senior Portfolio Manager
IDS Fund Management Limited Director
IDS Financial Services Inc. Vice President-
Senior Portfolio Manager
IDS Advisory Group Inc. Executive Vice President
IDS International, Inc. Senior Vice President
IDS Tower 10
Minneapolis, MN 55440
Norman Weaver, Jr., Senior Region Vice President
IDS Financial Services Inc. Senior Region Vice
IDS Tower 10 President
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Pacific Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Pacific Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Pacific Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Pacific Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Pacific Region
IDS Insurance Agency of Ohio Inc. Vice President-
Pacific Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Pacific Region
<PAGE>
<PAGE> 31
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Michael L. Weiner, Vice President--Corporate Tax Operations
IDS Capital Holdings Inc. Vice President
IDS Financial Services Inc. Vice President-Corporate
Tax Operations
IDS Futures III Corporation Vice President, Treasurer
and Secretary
IDS Futures Brokerage Group Vice President
IDS Futures Corporation Vice President, Treasurer
IDS Tower 10 and Secretary
Minneapolis, MN 55440
William N. Westhoff, Director and Senior Vice President--Fixed
Income Management
IDS Financial Services Inc. Senior Vice President-
IDS Tower 10 Fixed Income Management
Minneapolis, MN 55440
American Enterprise Life Insurance Director, Vice President-
Company Investments
Investors Syndicate Development Corp. Director, Vice President
IDS Life Insurance Company of New York Investment Officer
IDS Partnership Services Corporation Director, Vice President
IDS Property Casualty Insurance Company Vice President-Investments
IDS Real Estate Services Inc. Director, Chairman of the
Board and President
IDS Realty Corporation Director, Vice President
Edwin Wistrand, Vice President and Assistant General Counsel
IDS Financial Services Inc. Vice President and
IDS Tower 10 Assistant General Counsel
Minneapolis, MN 55440
<PAGE>
<PAGE> 32
Item 28a. Business and Other Connections of Investment Adviser (IDS
Financial Corporation)(cont'd)
Michael Woodward, Senior Region Vice President
IDS Financial Services Inc. Senior Region Vice
IDS Tower 10 President
Minneapolis, MN 55440
IDS Insurance Agency of Alabama Inc. Vice President-
Atlantic Region
IDS Insurance Agency of Arkansas Inc. Vice President-
Atlantic Region
IDS Insurance Agency of Massachusetts Vice President-
Inc. Atlantic Region
IDS Insurance Agency of New Mexico Inc. Vice President-
Atlantic Region
IDS Insurance Agency of North Carolina Vice President-
Inc. Atlantic Region
IDS Insurance Agency of Ohio Inc. Vice President-
Atlantic Region
IDS Insurance Agency of Wyoming Inc. Vice President-
Atlantic Region
IDS Life Insurance Company of New York Director
<PAGE>
<PAGE> 33
Item 29. Principal Underwriters.
(a) IDS Financial Services Inc. acts as principal underwriter
for the following investment companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS
Discovery Fund, Inc.; IDS Equity Plus Fund, Inc.; IDS Extra
Income Fund, Inc.; IDS Federal Income Fund, Inc.; IDS Global
Series, Inc.; IDS Growth Fund, Inc.; IDS High Yield Tax-Exempt
Fund, Inc.; IDS International Fund, Inc.; IDS Investor's
Series, Inc.; IDS Managed Retirement Fund, Inc.; IDS Market
Advantage Series, Inc.; IDS Money Market Series, Inc.; IDS New
Dimensions Fund, Inc.; IDS Precious Metals Fund, Inc.; IDS
Progressive Fund, Inc.; IDS Selective Fund, Inc.; IDS Special
Tax-Exempt Series Trust; IDS Stock Fund, Inc.; IDS Strategy
Fund, Inc.; IDS Tax-Exempt Bond Fund, Inc.; IDS Tax-Free Money
Fund, Inc.; IDS Utilities Income Fund, Inc. and IDS
Certificate Company.
(b) As to each director, officer or partner of the principal
underwriter:
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald G. Abrahamson Vice President- None
IDS Tower 10 Field Administration
Minneapolis, MN 55440
Jerome R. Amundson Vice President and None
IDS Tower 10 Controller-Mutual Funds
Minneapolis, MN 55440 Operations
Douglas A. Alger Vice President- None
IDS Tower 10 Compensation and Benefits
Minneapolis, MN 55440
Peter J. Anderson Senior Vice President- None
IDS Tower 10 Advisory Group and
Minneapolis, MN 55440 Equity Management
Kent L. Ashton Vice President-Group None
IDS Tower 10 Management Office,
Minneapolis, MN 55440 Banking and Certificates
Timothy V. Bechtold Vice President-Insurance None
IDS Tower 10 Product Development
Minneapolis, MN 55440
<PAGE>
<PAGE> 34
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
John D. Begley Vice President- None
Olentangy Valley Center Mid-Central Region
Suite 300
7870 Olentangy River Rd.
Columbus, OH 43235
Carl E. Beihl Vice President- None
IDS Tower 10 Strategic Planning and
Minneapolis, MN 55440 Architecture
Alan F. Bignall Vice President- None
IDS Tower 10 Financial Planning
Minneapolis, MN 55440 Systems
Brent L. Bisson Vice President- None
Seafirst Financial Northwest Region
Center, Suite 1730
601 W. Riverside Ave.
Spokane, WA 99201
Thomas J. Brakke Vice President- None
IDS Tower 10 Investment Services
Minneapolis, MN 55440 and Investment Research
Karl J. Breyer Senior Vice President None
IDS Tower 10 and Special Counsel
Minneapolis, MN 55440
John L. Burbidge Vice President- None
IDS Tower 10 Government Relations
Minneapolis, MN 55440
Harold E. Burke Vice President None
IDS Tower 10 and Assistant
Minneapolis, MN 55440 General Counsel
Orison Y. Chaffee III Vice President-Field None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James E. Choat Senior Region Vice None
Suite 124 President
6210 Campbell Rd.
Dallas, TX 75248
Kenneth J. Ciak Vice President and None
IDS Property Casualty General Manager-
1400 Lombardi Avenue IDS Property Casualty
Green Bay, WI 54304
Roger C. Corea Vice President- None
345 Woodcliff Drive Northeast Region
Fairport, NY 14450
<PAGE>
<PAGE> 35
Item 29. (continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Kevin F. Crowe Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Development
Alan R. Dakay Vice President- None
IDS Tower 10 Institutional Insurance
Minneapolis, MN 55440 Marketing
William F. Darland Vice President- None
Suite 108C South Central Region
301 Sovereign Court
Manchester, MO 63011
Michael P. Ducar Vice President- None
IDS Tower 10 Investment Services
Minneapolis, MN 55440
William H. Dudley Director, Executive Director/
IDS Tower 10 Vice President- Trustee
Minneapolis MN 55440 Investment and Brokerage
Operations
Roger S. Edgar Senior Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440
Gordon L. Eid Senior Vice President None
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Edwin W. Elder III Vice President-Operations None
IDS Property Casualty Insurance Co.
1 WEG Blvd.
DePere, WI 54115
Elizabeth A. Elder Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Mark A. Ernst Vice President- None
IDS Tower 10 Tax and Business Services
Minneapolis, MN 55440
Gordon M. Fines Vice President- None
IDS Tower 10 Mutual Fund Equity
Minneapolis MN 55440 Investments
Louis C. Fornetti Senior Vice President- None
IDS Tower 10 Corporate Controller
Minneapolis, MN 55440
<PAGE>
<PAGE> 36
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Douglas L. Forsberg Vice President- None
IDS Tower 10 Securities Services
Minneapolis, MN 55440
Robert G. Gilbert Vice President- None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden Vice President- None
IDS Tower 10 Field Compensation
Minneapolis, MN 55440 Development
Morris Goodwin Jr. Vice President and None
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Sara J. Grady Vice President-Human None
IDS Tower 10 Resources and Organization
Minneapolis, MN 55440 Development
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Robert L. Harden Vice President None
Suite 403 Mid-Atlantic Region
8500 Leesburg Pike
Vienna, VA 22180
Lorraine R. Hart Vice President- None
IDS Tower 10 Insurance Investments
Minneapolis, MN 55440
Mark S. Hays Vice President-Senior None
IDS Tower 10 Portfolio Manager, IDS
Minneapolis, MN 55440 International
Robert H. Healy Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Raymond E. Hirsch Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
<PAGE>
<PAGE> 37
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Kevin P. Howe Vice President- None
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations
David R. Hubers Senior Vice President- None
IDS Tower 10 Finance and Chief
Minneapolis, MN 55440 Financial Officer
Marietta Johns Senior Region Vice None
IDS Tower 10 President
Minneapolis, MN 55440
Douglas R. Jordal Vice President-Taxes None
IDS Tower 10
Minneapolis, MN 55440
Craig A. Junkins Vice President - Financial None
IDS Tower 10 Planning and Marketing
Minneapolis, MN 55440
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
Richard W. Kling Vice President- None
IDS Tower 10 Insurance Marketing
Minneapolis, MN 55440 and Products
Harold Knutson Vice President- None
IDS Tower 10 System Services
Minneapolis, MN 55440
Paul F. Kolkman Vice President- None
IDS Tower 10 Corporate Actuary
Minneapolis, MN 55440
Claire Kolmodin Vice President- None
IDS Tower 10 Service Quality
Minneapolis, MN 55440
Christopher Kudrna Vice President- None
IDS Tower 10 Systems and Technology
Minneapolis, MN 55440 Development
Steven C. Kumagai Director; Senior Vice None
IDS Tower 10 President- Associate
Minneapolis, MN 55440 General Sales Manager
Edward Labenski Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
<PAGE>
<PAGE> 38
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Peter L. Lamaison Vice President- None
One Broadgate IDS International
London, England Division
Kurt A. Larson Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Ryan R. Larson Vice President- None
IDS Tower 10 Annuity Product
Minneapolis, MN 55440 Development
Douglas A. Lennick Director; Senior Vice None
IDS Tower 10 President and General
Minneapolis, MN 55440 Sales Manager
Dickson W. Lewis Vice President- None
IDS Tower 10 Consumer and Business
Minneapolis, MN 55440 Marketing
Mary J. Malevich Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
James M. McAlear, Jr. Vice President and None
One Broadgate Senior Portfolio
London, England Manager-IDS
International
William J. McKinney Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Support
Thomas Medcalf Vice President- None
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
William C. Melton Vice President- None
IDS Tower 10 Chief Economist
Minneapolis, MN 55440
Earlon L. Milbrath Vice President- None
IDS Tower 10 U.K. Venture
Minneapolis, MN 55440
Janis E. Miller Vice President-Mutual None
IDS Tower 10 Funds Products and
Minneapolis, MN 55440 Marketing
James A. Mitchell Senior Vice President- None
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
<PAGE>
<PAGE> 39
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Pamela J. Moret Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Robert J. Neis Vice President- None
IDS Tower 10 EDP Services
Minneapolis, MN 55440
Vernon F. Palen Vice President-Rocky None
Suite D-222 Mountain Region
7100 E. Lincoln Drive
Scottsdale, AZ 85253
James R. Palmer Vice President- None
IDS Tower 10 Insurance Operations
Minneapolis, MN 55440
George M. Perry Vice President- None
IDS Tower 10 Corporate Strategy
Minneapolis, MN 55440 and Development
Susan B. Plimpton Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Marketing
Ronald W. Powell Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James M. Punch Vice President- None
IDS Tower 10 TransAction Services
Minneapolis, MN 55440
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
Roger B. Rogos Vice President- None
Suite 15, Parkside Place Great Lakes
945 Boardman-Canfield Rd Region
Youngstown, Ohio 44512
ReBecca K. Roloff Vice President- None
IDS Tower 10 Insurance
Minneapolis, MN 55440 Operations
Robert A. Rudell Vice President- None
IDS Tower 10 Sales and Marketing,
Minneapolis, MN 55440 IDS Institutional
Marketing
<PAGE>
<PAGE> 40
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
James H. Sadlowske Vice President- None
IDS Tower 10 System Services
Minneapolis, MN 55440
Erven A. Samsel Senior Region Vice None
45 Braintree Hill Park President
Braintree, MA 02184
Carol A. Sander Senior Vice President- None
IDS Tower 10 Communications
Minneapolis, MN 55440
R. Reed Saunders Director; Senior None
IDS Tower 10 Vice President-
Minneapolis, MN 55440 Financial Planning and
Marketing
Stuart A. Sedlacek Vice President- None
IDS Tower 10 Quantitative
Minneapolis, MN 55440 Investment Management
F. Dale Simmons Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440 Insurance Investments
Julian W. Sloter Vice President- None
9040 Roswell Rd. Southeast Region
River Ridge-Suite 600
Atlanta, GA 30350
William A. Smith Vice President- None
IDS Tower 10 Finance and CFO/UK
Minneapolis, MN 55440
James B. Solberg Vice President- None
IDS Tower 10 Advanced Financial
Minneapolis, MN 55440 Planning
James W. Sowles Vice President- None
IDS Tower 10 Certificate
Minneapolis, MN 55440 Administration
Bridget Sperl Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440 Management Services
<PAGE>
<PAGE> 41
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Jeffrey E. Stiefler Director, Chief None
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
Lois Stilwell Vice President- None
IDS Tower 10 Sales Training and
Minneapolis, MN 55440 Communications
William A. Stoltzmann Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James J. Strauss Vice President- None
IDS Tower 10 Corporate Planning
Minneapolis, MN 55440 and Analysis
Neil Taylor Vice President- None
IDS Tower 10 National Sales/UK
Minneapolis, MN 55440
John R. Thomas Senior Vice President- Director/
IDS Tower 10 Mutual Funds Operations Trustee
Minneapolis, MN 55440
Melinda S. Urion Vice President- None
IDS Tower 10 Insurance Controller
Minneapolis, MN 55440
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Norman Weaver Jr. Senior Region Vice None
Suite 215 President
1501 Westcliff Drive
Newport Beach, CA 92660
Michael L. Weiner Vice President- None
IDS Tower 10 Corporate Tax
Minneapolis, MN 55440 Operations
William N. Westhoff Senior Vice President- None
IDS Tower 10 Fixed Income Management
Minneapolis, MN 55440
Edwin Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
<PAGE>
<PAGE> 42
Item 29. (Continued)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Michael Woodward Senior Region Vice None
Suite 815 President
8585 Broadway
Merrillville, IN 46410
Item 29(c). Not applicable.
Item 30. Location of Accounts and Records
IDS Financial Corporation
IDS Tower 10
Minneapolis, MN 55440
Item 31. Management Services
Not Applicable.
Item 32. Undertakings
(a) Not Applicable.
(b) Not Applicable.
(c) The Registrant undertakes to furnish each person
to whom a prospectus is delivered with a copy of
the Registrant's latest annual report to
shareholders, upon request and without charge.
<PAGE>
PAGE 85
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, IDS Equity Plus
Fund, Inc., certifies that it meets all of the requirements for
effectiveness of this Amendment to its Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has
duly caused this Amendment to its Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Minneapolis and State of Minnesota on the 26th day
of January, 1994.
IDS EQUITY PLUS FUND, INC.
By /s/ William R. Pearce**
William R. Pearce, President
Pursuant to the requirements of the Securities Act of 1933, this
Amendment to its Registration Statement has been signed below by
the following persons in the capacities indicated on the 26th day
of January 1994.
Signature Capacity
President,
/s/ William R. Pearce** Principal Executive
William R. Pearce Officer and Director
Treasurer, Principal
/s/ Leslie L. Ogg** Financial Officer and
Leslie L. Ogg Principal Accounting
Officer
/s/ William H. Dudley * Director
William H. Dudley
/s/ Robert F. Froehlke* Director
Robert F. Froehlke
/s/ David R. Hubers* Director
David R. Hubers
/s/ Anne P. Jones* Director
Anne P. Jones
<PAGE>
PAGE 86
Signature Capacity
/s/ Donald M. Kendall* Director*
Donald M. Kendall
/s/ Melvin R. Laird* Director
Melvin R. Laird
/s/ Lewis W. Lehr* Director
Lewis W. Lehr
/s/ Aulana L. Peters* Director
Aulana L. Peters
/s/ Edson W. Spencer * Director
Edson W. Spencer
/s/ John R. Thomas* Director
John R. Thomas
/s/ Wheelock Whitney* Director
Wheelock Whitney
*Signed pursuant to Directors' Power of Attorney dated October 14,
1993, filed electronically as Exhibit 17(a) to Registrant's Post-
Effective Amendment No. 77 by:
________________________
Leslie L. Ogg
**Signed pursuant to Officers' Power of Attorney dated June 1,
1993, filed electronically as Exhibit 17(b) to Registrant's Post-
Effective Amendment No. 77 by:
________________________
Leslie L. Ogg
<PAGE>
PAGE 87
CONTENTS OF THIS
POST-EFFECTIVE AMENDMENT NO. 78
TO REGISTRATION STATEMENT NO. 2-13188
This Post-Effective Amendment comprises the following papers and
documents:
The facing sheet.
The cross reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Financial Information.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
EXHIBIT INDEX
B(11) Independent Auditors' Consent
<PAGE>
<PAGE>
INDEPENDENT AUDITORS' CONSENT
___________________________________________________________________
The Board of Directors and Shareholders
IDS Equity Plus Fund, Inc.:
We consent to the use of our report incorporated herein by
reference and to the references to our Firm under the headings
"Financial Highlights" in Part A and "INDEPENDENT AUDITORS" in Part
B of the Registration Statement.
KPMG Peat Marwick
Minneapolis, Minnesota
January 26, 1994
<PAGE>
