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FINANCIAL PLANNING
IDS Equity Select Fund
1995 annual report
(prospectus enclosed)
(Icon of) three apple trees
The goals of IDS Equity Select Fund, Inc. are growth of capital and
income. The Fund invests primarily in moderate growth stocks,
higher yielding equities and debt securities.
(This annual report includes a prospectus that describes in detail
the Fund's objective, investment policies, risks, sales charges,
fees and other matters of interest. Please read the prospectus
carefully before you invest or send money.)
Distributed by
American Express
Financial Advisors Inc.
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(Icon of) three apple trees
Budding blue chips
When most people think of stocks, they tend to focus on the notable
names in American business -- the blue chips, as they're known.
But there's another group of companies that, though smaller and
less well-known, boast impressive business histories. These mid-
size companies, which we call "budding blue chips," are the
foundation of Equity Select Fund. Often, they enjoy a dominant
position in their business. For an investor, this means an
opportunity to participate in the growth that's likely for these
companies and the potential for rising stock prices.
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Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the Fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the Fund in detail.
1995 annual report
From the president 4
From the portfolio manager 4
Ten largest holdings 6
Making the most of your Fund 7
Long-term performance 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 21
IDS mutual funds 24
Federal income tax information 27
1995 prospectus
The Fund in brief
Goal 3p
Types of Fund investments and their risks 3p
Manager and distributor 3p
Portfolio manager 3p
Alternative purchase agreements 3p
Sales charge and Fund expenses 4p
Performance
Financial highlights 6p
Total returns 8p
Investment policies and risks 10p
Facts about investments and their risks 10p
Alternative investment option 16p
Valuing Fund shares 17p
How to purchase, exchange or redeem shares 18p
Alternative purchase arrangements 18p
How to purchase shares 20p
How to exchange shares 23p
How to redeem shares 24p
Reductions and waivers of the sales charge 29p
Special shareholder services 34p
Services 34p
Quick telephone reference 34p
Distributions and taxes 35p
Dividend and capital gain distributions 35p
Reinvestments 36p
Taxes 36p
How to determine the correct TIN 38p<PAGE>
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How the Fund is organized 39p
Shares 39p
Voting rights 39p
Shareholder meeting 39p
Board members and officers 39p
Investment manager and transfer agent 41p
Distributor 42p
About American Express Financial Corporation 44p
General information 44p
Appendix 45p
Description of corporate bond ratings 45p
(This annual report is not part of the prospectus)<PAGE>
PAGE 5
To our shareholders
(photo of) William R. Pearce, President of the Fund
(photo of) Joseph M. Barsky, Portfolio manager
From the president
If you're and experienced investor, you know that 1995 was an
unusually strong year for the U.S. financial markets. Perhaps just
as important, you also know that history shows that bull markets
don't last forever. Though they're often predictable, declines --
whether they're brief or longlasting, moderate or substantial --
are always a possibility.
That fact reinforces the need for investors to review periodically
their long-term goals and assess whether their investment program
remains on track to achieving them. Your quarterly investment
statements are one part of that monitoring process. The other is a
meeting with your American Express financial advisor. That becomes
even more important if there's a major change in your financial
situation or in the financial markets.
William R. Pearce
From the portfolio manager
With the U.S. stock market mounting its best sustained advance in
several years, IDS Equity Select Fund turned in a strong
performance during its fiscal year -- December 1994 through
November 1995. For the period, shareholders realized a 27.1% total
return for Class A shares, including net asset value appreciation
and distributions (capital gains and dividends).
Unlike the previous fiscal year, when rapidly rising interest rates
kept the stock market off balance, the past period saw longterm
rates decline. That, coupled with generally strong corporate
profits and an ongoing low inflation rate, provided support to the
market from the outset of the period. Aside from a relatively
brief summer slump, the market displayed remarkably consistent
momentum throughout the 12 months.
'Large-caps' lead
For the most part stocks of large companies were at the forefront
of the market's advance. That trend worked against us much of the
time, because this Fund focuses mainly on mid-size companies,
commonly called "midcaps." So, while we enjoyed good gains from a
number of holdings, overall we were unable to overcome that
inherent disadvantage. However, to allow us to participate in some
of the success of the "large-caps," we did add to our holdings in
that category. Also enhancing the Fund's performance throughout
the year was our decision to hold relatively small cash reserves,
opting instead to keep nearly all assets at work in stocks.
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Our investment approach during the year focused on four business
themes: technology, insurance, building materials and retailing.
Technology stcks proved to be the most productive for us, as they
constituted our largest stock exposure and were by far the market's
strongest sector. Cisco Systems and Computer Associates were among
our biggest winners in that group. Insurance stocks, our second-
largest exposure, also made a substantial contribution to Fund
performance, with Unum and Ace, Ltd. among our prominent
performers. Building materials was more of a mixed bag. Our
holdings within the group lagged early in the period, then picked
up during the final months, with Clayton Homes, the Fund's largest
holding, leading the upturn. Retailing, despite nice gains
provided by The Gap and Jones Apparel, turned out to be a weak
group for us overall.
Favorable factors still place
The principal forces that propelled the stock market during the
past 12 months -- subdued inflation, lower long-term interest rates
and healthy corporate profits -- remained in effect as we began a
new fiscal year, though to a somewhat lesser degree than we saw
some months ago. Therefore, while a repeat performance by the
market would be most unlikely, we're fundamentally optimistic about
prospects for positive returns in the months ahead.
We're particularly encouraged by the sizable gain the Fund enjoyed
in November, the final month of the fiscal year. That could be an
indication that the small and mid-size companies that dominate our
portfolio are gathering momentum for stronger overall performance
in 1996.
Joseph M. Barsky
Class A
12-month performance
(All figures per share)
Net asset value (NAV)
Nov. 30, 1995 $ 12.35
Nov. 30, 1994 $ 10.31
Increase $ 2.04
Distributions
Dec. 1, 1994 - Nov. 30, 1995
From income $ 0.12
From capital gains $ 0.49
Total distributions $ 0.61
Total Return** +27.1%
Class B
March 20, 1995 - Nov. 30, 1995
(All figures per share)
Net asset value (NAV)
Nov. 30, 1995 $ 12.31
March 20, 1995* $ 10.37
Increase $ 1.94
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Distributions
March 20, 1995* - Nov. 30, 1995
From income $ 0.06
From capital gains $ ---
Total distribution $ 0.06
Total Return** +19.3%***
Class Y
March 20, 1995 - Nov. 30, 1995
(All figures per share)
Net asset value (NAV)
Nov. 30, 1995 $ 12.35
March 20, 1995* $ 10.37
Increase $ 1.98
Distributions
March 20, 1995* - Nov. 30, 1995
From income $ 0.10
From capital gains $ ---
Total distribution $ 0.10
Total Return** +20.0%***
*Inception date.
**The prospectus discusses the effect of sales charges, if any, on
the various classes.
***The total return is a hypothetical investment in the Fund with
all distributions reinvested.
(This annual report is not part of the prospectus.)
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<TABLE>
<CAPTION>
IDS Equity Select Fund, Inc.
Your Fund's ten largest holdings
The ten holdings listed here make up 18.94% of the Fund's net assets
__________________________________________________________________________________________
Percent Value
(of Fund's net assets) (as of Nov. 30, 1995)
__________________________________________________________________________________________
<S> <C> <C>
Clayton Homes 2.16% $14,700,000
The company produces and sells, both wholesale and retail,
manufactured homes. Clayton Homes also provides related financial
and insurance services and develops, markets and manages
manufactured home communities.
Illinois Tool Works 2.10 14,259,375
A highly-regarded industrial manufacturer, with a broad, leading-edge
base of capital goods and consumer component products.
Tyco International 1.94 13,177,500
A diverse, New England-based producer of packaging, cable
manufacturing, fire extinguishing systems, alarms and controls, and
simple electronic parts.
ConAgra 1.90 12,959,375
The company is engaged in a variety of basic food businesses,
including feed and fertilizer, grain processing and merchandising,
agricultural chemicals, worldwide trading, fresh and processed red
meats, poultry products, and frozen prepared foods and seafoods.
Sherwin-Williams 1.89 12,878,125
A leading producer and marketer of consumer and industrial paints
and coatings.
Pep Boys-Manny Moe & Jack 1.85 12,587,500
A retailer of auto parts, with more than 330 stores located primarily in
Southern California and the Delaware Valley.
Albertson's 1.81 12,300,000
An Idaho-based operator of supermarkets and combination food/drug
stores - the fourth largest U.S. food retailer.
Pall 1.79 12,206,250
A leading supplier of fine filters mainly made by the company, using
its proprietary filter media, and other fluid clarification equipment for
the removal of solid, liquid and gaseous contaminants from a wide
variety of liquids and gases.
Fluor 1.77 12,025,000
A leading, worldwide engineering and construction company serving
energy, natural resource, processing, industrial, commercial and
utility markets.
Computer Associates Intl 1.73 11,790,000
The largest vendor of non-microcomputer products in the
software industry.
</TABLE>
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Making the most of your fund
Average annual total return
(as of Nov. 30, 1995)
1 year 5 years 10 years
+20.76% +13.64% +12.92%
Total returns for Class A, Class B and Class Y for the period from
March 20, 1995 to Nov. 30, 1995 were +13.87%, +14.29% and +20.02%,
respectively. March 20, 1995 was the inception date for Class B
and Class Y. Total return for Class A is shown for comparative
purposes. The performance of Class B and Class Y will vary from
the performance of Class A based on differences in sales charges
and fees.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures for Class A and Class B reflect the effect of the maximum
5% sales charge. This was a period of widely fluctuating security
prices. Past performance is no guarantee of future results.
Build your assets systematically
One of the best ways to use the fund is by dollar-cost averaging --
a time-tested strategy that can make market fluctuations work for
you. To dollar-cost average, simply invest a fixed amount of money
regularly. You'll automatically buy more shares when the Fund's
share price is low, fewer shares when it is high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low.
(arrow in table pointing to September) and fewer shares when the
per share market price is high.
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You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
Three ways to benefit from a mutual fund:
o your shares increase in value when the Fund's investments do
well
o you receive capital gains when the gains on investments sold
by the Fund exceed losses
o you receive income when the Fund's stock dividends, interest
and short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Equity Select Fund
Average annual total return
(as of Nov. 30, 1995)
1 year 5 years 10 years $33,740
+20.76% +13.64% +12.92% S&P 500 Equity
Stock Index Select
Fund
Lipper Growth &
$20,000 Income Fund Index
$9,500
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95
The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 20, 1995 to Nov. 30, 1995 were 13.87%, +14.29%
and +20.02%, respectively. March 20, 1995 was the inception date
for Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 11/30/85 to 11/30/95. Returns do not
reflect taxes payable on distributions. Reinvestment of all income
and capital gain distributions for the fund, with a value of
$20,522. Also see "Performance" in the fund's current prospectus.
Standard & Poor's 500 Stock Index (S&P 500), an unmanaged list of
common stocks is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
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Lipper Growth and Income Fund Index, published by Lipper Analytical
Services, Inc., includes 30 funds that are generally similar to the
fund, although some funds in the index may have somewhat different
investment policies or objectives.
On the graph above you can see how the Fund's total return compared
to two widely cited performance indexes, the S&P 500 and the Lipper
Growth & Income Fund Index. In comparing Equity Select Fund to the
two indexes, you should take account of the fact that the fund's
performance reflects the maximum sales charge of 5%, while such
charges are not reflected in the performance of the indexes. If
you were actually to buy either individual stocks or growth mutual
funds, any sales charges that you pay would reduce your total
return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
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Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS Equity Select Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS Equity Select Fund, Inc. as of November 30, 1995, and the
related statement of operations for the year then ended and the
statements of changes in net assets for each of the years in the
two-year period ended November 30, 1995, and the financial
highlights for each of the years in the ten-year period ended
November 30, 1995. These financial statements and the financial
highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and
sold but not received or delivered we request confirmations from
brokers, and where replies are not received, we carry out other
appropriate auditing procedures. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Equity Select Fund, Inc. at November 30, 1995, and the results of
its operations for the year then ended and the changes in its net
assets for each of the years in the two-year period ended November
30, 1995, and the financial highlights for the periods stated in
the first paragraph above, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
January 5, 1996
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<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Equity Select Fund, Inc.
Nov. 30, 1995
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $500,823,374) $680,642,265
Dividends and accrued interest receivable 907,127
Receivable for investment securities sold 8,122,319
_____________________________________________________________________________________________________________
Total assets 689,671,711
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 3,346,197
Payable for investment securities purchased 5,538,845
Accrued investment management services fee 13,125
Accrued distribution fee 125
Accrued service fee 6,472
Accrued transfer agency fee 3,174
Accrued administrative services fee 1,437
Other accrued expenses 220,065
_____________________________________________________________________________________________________________
Total liabilities 9,129,440
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $680,542,271
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 551,257
Additional paid-in capital 447,568,186
Undistributed net investment income 686,538
Accumulated net realized gain (Note 1) 51,917,025
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies 179,819,265
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $680,542,271
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $674,392,556
Class B $ 3,156,283
Class Y $ 2,993,432
Net asset value per share of outstanding capital stock: Class A shares 54,626,889 $ 12.35
Class B shares 256,438 $ 12.31
Class Y shares 242,396 $ 12.35
See accompanying notes to financial statements.
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Financial statements
Statement of operations
IDS Equity Select Fund, Inc.
Year ended Nov. 30, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income:
Dividends (net of foreign taxes withheld of $36,137) $ 8,736,115
Interest 2,283,959
_____________________________________________________________________________________________________________
Total income 11,020,074
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 2,988,666
Distribution fee
Class A 84,330
Class B 6,751
Transfer agency fee 683,989
Incremental transfer agency fee - Class B 194
Service fee
Class A 774,651
Class B 1,575
Administrative services fee 173,993
Compensation of directors 27,887
Compensation of officers 5,971
Custodian fees 94,780
Postage 98,289
Registration fees 106,551
Reports to shareholders 105,553
Audit fees 24,250
Administrative 5,373
Other 7,367
_____________________________________________________________________________________________________________
Total expenses 5,190,170
Earnings credits on cash balances (Note 2) (17,037)
_____________________________________________________________________________________________________________
Total net expenses 5,173,133
_____________________________________________________________________________________________________________
Investment income -- net 5,846,491
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including loss of $5,229 from foreign currency transactions) (Note 3) 51,811,694
Net realized gain on expired option contracts written (Note 4) 78,622
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 51,890,316
Net change in unrealized appreciation or depreciation of investments and on
translation of assets and liabilities in foreign currencies 91,992,076
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 143,882,392
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $149,729,333
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
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<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Equity Select Fund, Inc.
Year ended Nov. 30,
_____________________________________________________________________________________________________________
Operations and distributions 1995 1994
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 5,846,941 $ 5,556,671
Net realized gains on investments and foreign currency 51,890,316 27,538,850
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 91,992,076 (65,795,357)
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations 149,729,333 (32,699,836)
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (6,443,371) (5,298,428)
Class B (4,112) --
Class Y (32,268) --
Net realized gains
Class A (27,566,617) (56,481,045)
_____________________________________________________________________________________________________________
Total distributions (34,046,368) (61,779,473)
_____________________________________________________________________________________________________________
Capital share transactions (Note 6)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 23,789,273 64,577,273
Class B shares 3,058,093 --
Class Y shares 3,753,044 --
Reinvestment of distributions at net asset value
Class A shares 32,178,616 58,528,158
Class B shares 4,094 --
Class Y shares 32,267 --
Payments for redemptions
Class A shares (77,433,209) (64,956,218)
Class B shares (Note 2) (132,946) --
CLass Y shares (1,437,317) --
_____________________________________________________________________________________________________________
Increase (decrease) in net assets from capital share transactions (16,188,085) 58,149,213
_____________________________________________________________________________________________________________
Total increase (decrease) in net assets 99,494,880 (36,330,096)
Net assets at beginning of year 581,047,391 617,377,487
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$686,538 and $1,406,669) $680,542,271 $581,047,391
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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PAGE 16
Notes to financial statements
IDS Equity Select Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
The Fund is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company.
The Fund offers Class A, Class B and Class Y shares. Class A shares
are sold with a front-end sales charge. Class B shares, which the
Fund began offering on March 20, 1995, may be subject to a
contingent deferred sales charge, Class B shares automatically
convert to Class A after eight years. Class Y shares, which the
Fund also began offering on March 20, 1995, have no sales charge
and are offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation
and other rights, and the same terms and conditions, except that
the level of distribution fee, transfer agency fee and service fee
(class specific expenses) differs among classes. Income, expenses
(other than class specific expenses) and realized and unrealized
gains or losses on investments are allocated to each class of
shares based upon its relative net assets.
Significant accounting policies followed by the Fund are summarized
below:
Valuation of securities
All securities are valued at the close of each business day.
Securities traded on national securities exchanges or included in
national market systems are valued at the last quoted sales price;
securities for which market quotations are not readily available,
including illiquid securities, are valued at fair value according
to methods selected in good faith by the board of directors.
Determination of fair value involves, among other things, reference
to market indexes, matrixes and data from independent brokers.
Short-term securities maturing in more than 60 days from the
valuation date are valued at the market price or approximate market
value based on current interest rates; those maturing in 60 days or
less are valued at amortized cost.
Option transactions
In order to produce incremental earnings, protect gains, and
facilitate buying and selling of securities for investment
purposes, the Fund may buy or write options traded on any U.S. or
foreign exchange or in the over-the-counter market where the
completion of the obligation is dependent upon the credit
standing of the other party. The Fund also may buy and sell put and
call options and write covered call options on portfolio securities
and may write cash-secured put options. The risk in writing a call
option is that the Fund gives up the opportunity of profit if the
market price of the security increases. The risk in writing a put
option is that the Fund may incur a loss if the market price of the
security decreases and the option is exercised. The risk in buying <PAGE>
PAGE 17
an option is that the Fund pays a premium whether or not the
option is exercised. The Fund also has the additional risk of not
being able to enter into a closing transaction if a liquid
secondary market does not exist.
Option contracts are valued daily at the closing prices on their
primary exchanges and unrealized appreciation or depreciation is
recorded. The Fund will realize a gain or loss upon expiration or
closing of the option transaction. When an option is exercised, the
proceeds on sales for a written call option, the purchase cost for
a written put option or the cost of a security for a purchased put
or call option is adjusted by the amount of premium received or
paid.
Futures transactions
In order to gain exposure to or protect itself from changes in the
market, the Fund may buy and sell futures contracts traded on any
U.S. or foreign exchange. The Fund also may buy or write put and
call options on these futures contracts. Risks of entering into
futures contracts and related options include the possibility that
there may be an illiquid market and that a change in the value of
the contract or option may not correlate with changes in the value
of the underlying securities.
Upon entering into a futures contract, the Fund is required to
deposit either cash or securities in an amount (initial margin)
equal to a certain percentage of the contract value. Subsequent
payments (variation margin) are made or received by the Fund each
day. The variation margin payments are equal to the daily changes
in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the
contract is closed or expires.
Foreign currency translations and
foreign currency contracts
Securities and other assets and liabilities denominated in foreign
currencies are translated daily into U.S. dollars at the closing
rate of exchange. Foreign currency amounts related to the purchase
or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in
foreign exchange rates on realized and unrealized security gains or
losses is reflected as a component of such gains or losses. In the
statement of operations, net realized gains or losses from foreign
currency transactions may arise from sales of foreign currency,
closed forward contracts, exchange gains or losses realized between
the trade date and settlement dates on securities transactions, and
other translation gains or losses on dividends, interest income and
foreign withholding taxes.
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PAGE 18
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 has been decreased by $87,321 and accumulated net realized
gain has been increased by $54,635 resulting in a net
reclassification adjustment to increase additional paid-in-capital
by $32,686.
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.
<PAGE>
PAGE 19
___________________________________________________________________
2. Expenses and sales charges
Under terms of a prior agreement that ended March 19, 1995, the
Fund paid AEFC a fee for managing its investments, recordkeeping
and other specified services. The fee was a percentage of the
Fund's average daily net assets consisting of a group asset charge
in reducing percentages from 0.46% to 0.32% annually on the
combined net assets of all non-money market funds in the IDS MUTUAL
FUND GROUP and an individual annual asset charge of 0.14% of
average daily net assets. The fee was adjusted upward or downward
by a performance incentive adjustment based on the Fund's average
daily net assets over a rolling 12-month period as measured against
the change in the Lipper Growth and Income Fund Index. The maximum
adjustment was 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 would have been zero.
The adjustment decreased the fee by $283,780 for the year ended
Nov. 30, 1995.
Also under terms of the prior agreement, the Fund paid AEFC a
distribution fee at an annual rate of $6 per shareholder account
and a transfer agency fee at an annual rate of $15 per shareholder
account.
Effective March 20, 1995, when the Fund began offering multiple
classes of shares, the Fund entered into agreements with AEFC for
managing its portfolio, providing administrative services and
serving as transfer agent as follows:
Under its Investment Management Services Agreement, AEFC determines
which securities will be purchased, held or sold. The management
fee is a percentage of the Fund's average daily net assets in
reducing percentages from 0.53% to 0.4% annually. The performance
incentive adjustment remains unchanged from the prior agreement.
Under an Administration Services Agreement, the Fund pays AEFC for
administration and accounting services at a percentage of the
Fund's average daily net assets in reducing percentages from 0.04%
to 0.02% annually.
Under a separate Transfer Agency Agreement, AEFC maintains
shareholder accounts and records. The Fund pays AEFC an annual fee
per shareholder account for this service as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the Fund entered into agreements
with American Express Financial Advisors Inc. for distribution and
shareholder servicing-related services as follows: Under a Plan and
Agreement of Distribution, the Fund pays a distribution fee at an
annual rate of 0.75% of the Fund's average daily net assets
attributable to Class B shares for distribution-related services.
<PAGE>
PAGE 20
Under a Shareholder Service Agreement, the Fund pays a fee for
service provided to shareholders by financial advisors and other
servicing agents. The fee is calculated at a rate of 0.175% of the
Fund's average daily net assets attributable to Class A and Class B
shares AEFC will assume and pay any expenses (except taxes and
brokerage commissions) that exceed the most restrictive applicable
state expense limitation.
Sales charges received by American Express Financial Advisors Inc.
for distributing Fund shares were $524,035 for Class A and $105 for
Class B for the year ended Nov. 30, 1995. The Fund also pays
custodian fees to American Express Trust Company, an affiliate of
AEFC.
During the year ended Nov. 30, 1995, the Fund's custodian and
transfer agency fees were reduced by $17,037 as a result of
earnings credits from overnight cash balances.
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 $7,853 for the year ended Nov. 30, 1995.
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $359,767,884 and $369,547,894,
respectively, for the year ended Nov. 30, 1995. Realized gains and
losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with AEFC were
$111,986 for the year ended Nov. 30, 1995.
Income from securities lending amounted to $70,918 for the year
ended Nov. 30, 1995. The risks to the Fund of securities lending
are that the borrower may not provide additional collateral when
required or return the securities when due.
___________________________________________________________________
4. Option contracts written
The number of contracts and premium amounts associated with option
contracts written is as follows:
Year ended Nov. 30, 1995
_____________________________________________________
Puts Calls
Contracts Premium Contracts Premium
__________________________________________________________________
Balance Nov. 30, 1994 500 $30,249 500 $27,124
Opened -- -- 500 37,999
Exercised -- -- (250) (16,750)
Expired (500) (30,249) (750) (48,373)
______________________________________________________________________________
Balance Nov. 30, 1995 -- $ -- -- $ --
______________________________________________________________________________
<PAGE>
PAGE 21
5. Illiquid securities
At Nov. 30, 1995, investments in securities included issues that
are illiquid. The Fund currently limits investments in illiquid
securities to 10% of the net assets, at market value, at the time
of purchase. The aggregate value of such securities at Nov. 30,
1995 was $10,203,200 representing 1.5% 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. Capital share transactions
<TABLE>
<CAPTION>
Transactions in shares of capital stock for the years indicated are asfollows:
Year ended Nov. 30, 1995 Year ended
11/30/94
Class A Class B* Class Y* Class A
_______________________________________________________________________________________
_
<S> <C> <C> <C> <C>
Sold 2,198,887 267,313 358,846 5,845,726
Issued for reinvested 3,206,669 357 2,889 5,172,792
distributions
Redeemed (7,156,868) (11,232) (119,339)
(5,934,761)
_______________________________________________________________________________________
Net increase (decrease) (1,751,312) 256,438 242,396 5,083,757
_______________________________________________________________________________________
*Inception date was March 20, 1995.
_______________________________________________________________________________________
</TABLE>
7. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on pages 6 and 7 of the prospectus.
<PAGE>
PAGE 22
<TABLE>
<CAPTION>
Investments in securities
IDS Equity Select Fund, Inc. (Percentages represent value of
Nov. 30, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (95.8%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (2.5%)
Boeing 100,000 $7,287,500
United Technologies 105,000 9,843,750
___________
Total 17,131,250
___________________________________________________________________________________________________________________________
Automotive & related (4.2%)
Dana 250,000 7,312,500
Goodyear Tire & Rubber 250,000 10,593,750
Worthington Inds 550,000 10,793,750
____________
Total 28,700,000
_____________________________________________________________________________________________________________________________
Banks and savings & loans (3.0%)
Collective Bancorp 200,000 5,275,000
First Chicago 135,000 9,382,500
Standard Federal 150,000 5,756,250
____________
Total 20,413,750
_____________________________________________________________________________________________________________________________
Building materials (8.5%)
Clayton Homes 525,000 14,700,000
Lennar 372,000 8,230,500
Martin Marietta Materials 425,000 8,659,375
Sherwin-Williams 325,000 12,878,125
Tyco Intl 420,000 13,177,500
_____________
Total 57,645,500
_____________________________________________________________________________________________________________________________
Chemicals (4.3%)
Hanna (MA) 375,000 10,078,125
Pall 450,000 12,206,250
Praxair 233,900 6,812,338
_____________
Total 29,096,713
_____________________________________________________________________________________________________________________________
Communications equipment (1.3%)
Airtouch Communications 300,000 (b) 8,737,500
_____________________________________________________________________________________________________________________________
Computers & office equipment (10.9%)
Ceridian 100,000 (b) 4,200,000
Cisco Systems 115,000 (b) 9,674,375
Compaq Computer 165,000 (b) 8,167,500
See accompanying notes to investments in securities.<PAGE>
PAGE 23
Computer Associates Intl 180,000 11,790,000
Hewlett-Packard 90,000 7,458,750
Manugistics Group 200,000 (b) 3,500,000
Parametric Technology 150,000 (b) 10,612,500
Solectron 250,000 (b) 10,625,000
StrataCom 110,000 (b) 8,250,000
____________
Total 74,278,125
_____________________________________________________________________________________________________________________________
Electronics (2.2%)
Intel 125,000 7,609,375
SGS-THOMSON Microelectronics 200,000 (b) 7,450,000
____________
Total 15,059,375
_____________________________________________________________________________________________________________________________
Energy (8.1%)
Enron Oil & Gas 475,000 9,975,000
Fluor 185,000 12,025,000
Royal Dutch Pete 65,000 8,344,375
Schlumberger 140,000 8,890,000
TOTAL 300,000 9,262,500
Weatherford Enterra 261,950 (b) 6,646,981
____________
Total 55,143,856
_____________________________________________________________________________________________________________________________
Financial services (3.2%)
Equity Residential Property REIT 200,000 6,200,000
Morgan Stanley 100,000 8,625,000
Salomon 200,000 7,275,000
____________
Total 22,100,000
_____________________________________________________________________________________________________________________________
Food (4.5%)
ConAgra 325,000 12,959,375
Pioneer Hi-Bred 200,000 11,450,000
Sysco 200,000 6,125,000
____________
Total 30,534,375
_____________________________________________________________________________________________________________________________
Health care (5.1%)
Beckman Instruments 225,000 7,846,875
Biomet 280,000 (b) 5,180,000
Merck 175,000 10,828,125
SmithKline Beechman 200,000 10,650,000
____________
Total 34,505,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 24
Industrial equipment & services (3.7%)
Illinois Tool Works 225,000 14,259,375
Teleflex 250,000 11,093,750
____________
Total 25,353,125
_____________________________________________________________________________________________________________________________
Industrial transportation (4.3%)
Conrail 140,000 9,782,500
Trinity Ind 325,000 9,993,750
Union Pacific 140,000 9,485,000
____________
Total 29,261,250
_____________________________________________________________________________________________________________________________
Insurance (7.9%)
ACE Limited 275,000 9,968,750
NAC RE 156,200 5,154,600
Progressive Corp Ohio 153,900 6,848,550
Risk Capital Holdings 150,000 (b) 3,093,750
Tempest Reinsurance 80,000 (b,d) 10,203,200
TIG Holdings 375,000 10,125,000
UNUM 150,000 8,118,750
____________
Total 53,512,600
_____________________________________________________________________________________________________________________________
Media (4.4%)
Harcourt General 265,000 10,666,250
McGraw-Hill 125,000 10,468,750
Time Warner 225,000 9,000,000
____________
Total 30,135,000
_____________________________________________________________________________________________________________________________
Metals (2.2%)
Aluminum Co Amer 200,000 11,700,000
UCAR Intl 100,000 (b) 3,187,500
____________
Total 14,887,500
_____________________________________________________________________________________________________________________________
Multi-Industry (1.8%)
Emerson Electric 46,400 3,619,200
Westinghouse Electric 500,000 8,437,500
____________
Total 12,056,700
_____________________________________________________________________________________________________________________________
Paper & packaging (1.5%)
Crown Cork & Seal 250,000 (b) 10,468,750
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 25
Retail (8.5%)
Albertson's 400,000 12,300,000
Gap 170,000 7,692,500
Home Depot 250,000 11,093,750
Nordstrom 175,000 6,868,750
Pep Boys-Manny Moe & Jack 475,000 12,587,500
Safeway 150,000 (b) 6,975,000
_____________
Total 57,517,500
_____________________________________________________________________________________________________________________________
Textiles & apparel (1.3%)
Jones Apparel Group 250,000 (b) 9,031,250
_____________________________________________________________________________________________________________________________
Foreign (2.4%)(c)
BBC Brown Boveri 7,200 8,268,818
Renaissance Energy 300,000 (b) 6,901,245
Renaissance Energy 54,000 (b,e) 1,242,224
____________
Total 16,412,287
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $472,165,515) $651,981,406
_____________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 26
<TABLE>
<CAPTION>
Short-term securities (4.2%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.3%)
Federal Natl Mtge Assn
Disc Note
12-22-95 5.72% $2,400,000 $ 2,392,048
_____________________________________________________________________________________________________________________________
Commercial paper (3.9%)
Albertson's
12-05-95 5.75 4,600,000 4,597,081
BellSouth Capital Funding
12-13-95 5.70 1,700,000 1,696,770
BellSouth Telecommunications
12-07-95 5.72 3,100,000 3,097,045
CAFCO
12-08-95 5.75 3,000,000 2,996,669
Ciesco LP
12-06-95 5.74 1,000,000 999,207
Deutsche Bank Financial
12-15-95 5.75 1,500,000 1,496,663
Lincoln Natl
12-01-95 5.72 4,300,000 (f) 4,300,000
12-15-95 5.75 2,000,000 (f) 1,995,551
PACCAR Financial
12-04-95 5.75 3,500,000 3,498,332
Transamerica Finance
01-17-96 5.72 800,000 794,026
Wal-Mart Stores
12-21-95 5.73 800,000 797,467
____________
Total 26,268,811
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $28,660,859) $ 28,660,859
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $500,823,374)(g) $680,642,265
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 27
____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Presently non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Identifies issue considered to be illiquid (see Note 5 to the financial statements.) Information
concerning such holdings at Nov. 30, 1995, is as follows:
Acquistion
Security date Cost
________________________________________________________________
Tempest Reinsurance 09-13-93 $8,000,000
________________________________________________________________
(e) Represents security sold under Rule 144A and is exempt from registration under the Securities Act of 1933, as
amended. This security has been determined to be liquid under guidelines established by the board of directors.
(f) Commercial paper sold within terms of a private placement memorandum, exempt from registration
under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to
dealers in that program or other "accredited investors." This security has been determined
to be liquid under guidelines established by the board of directors.
(g) At Nov. 30, 1995, the cost of securities for federal income tax purposes was $500,853,374
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $182,906,767
Unrealized depreciation (3,117,876)
______________________________________________________________________________________________
Net unrealized appreciation $179,788,891
_______________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 28
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories, or the equivalent, and in
government bonds.
(icon of) greek column
<PAGE>
PAGE 29
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the
timely payment of principal and interest by the U.S. government,
its agencies and instrumentalities. Seeks a high level of current
income and safety of principal consistent with its type of
investments.
(icon of) federal building
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
<PAGE>
PAGE 30
Growth and income investments
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20% of
its assets in the U.S. market.
(icon of) three flags
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stock of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
<PAGE>
PAGE 31
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high
current income and, secondarily, to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
<PAGE>
PAGE 32
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth potential
due to superiority in technology, marketing or management. The
fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial advisor or writing to American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.
<PAGE>
PAGE 33
Federal income tax information
IDS Equity Select Fund, Inc.
________________________________________________________________
The Fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on Form 1099-DIV, Dividends and Distributions, last
January. Dividends paid to you since the end of last year will be
reported to you on a tax statement sent next January. Shareholders
should consult a tax advisor on how to report distributions for
state and local purposes.
IDS Equity Select Fund, Inc.
Fiscal year ended Nov. 30, 1995
Class A
Income distributions
taxable as dividend income,
100% qualifying for deduction by corporations.
Payable date Per share
Dec. 29, 1994 $0.02750
March 30, 1995 0.03000
June 28, 1995 0.02999
Sept. 28, 1995 0.02751
Total $0.11500
Capital gain distribution
taxable for long-term capital gain.
Payable date Per share
Dec. 29, 1994 $0.49350
Total distributions $0.60850
<PAGE>
PAGE 34
Class B
Income distributions
taxable as dividend income,
100% qualifying for deduction by corporations.
Payable date Per share
March 30, 1995 0.02900
June 28, 1995 0.01988
Sept. 28, 1995 0.01364
Total distributions $0.06252
Class Y
Income distributions
taxable as dividend income,
100% qualifying for deduction by corporations.
Payable date Per share
March 30, 1995 0.03054
June 28, 1995 0.03469
Sept. 28, 1995 0.03269
Total distributions $0.09792
<PAGE>
PAGE 35
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
AMERICAN
EXPRESS
FINANCIAL
ADVISORS
IDS Equity Select Fund
(formerly IDS Equity Plus Fund)
IDS Tower 10
Minneapolis, MN 55440-0010
