IDS Strategy Fund, Inc.
1994 semiannual report
(icon of) chess piece
Offers five funds with separate goals and objectives to provide
investment flexibility with no initial sales charge
Diversification is a tried-and-true principle of successful investing.
IDS Strategy Fund addresses the diversification need by providing five
funds, each with a different investment style - from conservative to
aggressive. This means that, as your financial needs change, you simply
vary how your money is allocated among the Strategy funds. Plus, there's
no initial sales charge on any of the funds, which means that all of
your money goes to work immediately.
Contents
From the president 3
Aggressive Equity Fund
From the portfolio manager 4
Ten largest holdings 5
Equity Fund
From the portfolio manager 6
Ten largest holdings 7
Income Fund
From the portfolio manager 8
Ten largest holdings 9
Short-Term Income Fund
From the portfolio manager 10
Worldwide Growth Fund
From the portfolio managers 11
Ten largest holdings 12
All funds
Financial statements 13
Notes to financial statements 20
Investments in securities 32
Directors and officers 56
IDS mutual funds 57
To our shareholders
(Picture of William Pearce)
William R. Pearce
President of the fund
From the president
All of the funds in the ids mutual fund group held shareholder meetings
on Nov. 9, 1994. The meetings, which were well-attended, approved all of
the proposals advanced by management. Among the proposals were:
The mergers of Short-Term Income into IDS Federal Income Fund, Worldwide
Growth into IDS International Fund and Income into IDS Bond Fund. Each
fund will merge into a fund having substantially the same investment
objectives and policies in the first quarter of 1995.
- -The election of directors and the selection of KPMG Peat Marwick LLP as
independent auditors for each of the funds in the group.
- -For Aggressive Equity and Equity a new investment management agreement
that will become effective for each fund when it begins offering multiple
classes of shares, now planned to occur in the first quarter of 1995.
- -A change in investment policy that will permit the fund to adopt a
master/feeder structure if and when the board of each fund determines
that it is in the best interest of shareholders.
- -A change with respect to the "fundamental investment polices" that
allows the board to modify them should it deem appropriate.
- -No other business was presented at the meeting, which was concluded by
a report to shareholders from the IDS Investment Department.
Thanks to all of you for your effort in reviewing the proxy material and
voting your proxies.
Lastly, I want to introduce a new portfolio manager for Aggressive Equity
Fund. David Bayer has been with IDS since 1992 and assumed responsibility
for the fund in July 1994. He previously served as senior stock analyst
covering the computer industry and recently as associate portfolio
manager for IDS private accounts.
William R. Pearce
Aggressive Equity Fund
(Picture of David Bayer)
David Bayer
Portfolio manager
From the portfolio manager
Rising interest rates resulted in a sometimes-difficult market for growth
stocks during the first half of the fiscal year. Thanks to a rally late
in the period, the fund quickly made up some lost ground, but ultimately
it finished with a small loss for the six months.
The period began with growth stocks declining during April and May. The
principal cause was higher interest rates, which many investors thought
would hurt the business prospects of growth companies. This concern
spawned widespread selling that continued through June.
After stabilizing in July, growth stocks turned some slightly positive
momentum into a powerful rally during August that erased much of the
earlier decline. After that effort, the stocks concluded the period with
a slight loss during September.
As would be expected in an unsettled market, the performance of the stock
sectors in which we were invested was mixed. For example, technology-
related stocks (mainly those of computer semiconductor and software
providers) and health
care-related stocks fell last spring, then rebounded nicely during late
summer. Food, retailing, media, telecommunications and financial services
stocks fluctuated as well, but in a smaller range.
Most of the changes to the portfolio centered on shifting the
concentration from stocks of small growth companies to those of mid-size
growth companies. This was done with the aim of lessening the volatility
of the fund, while still taking advantage of the good growth
opportunities offered by somewhat larger companies. While we won't
automatically disregard small stocks, the emphasis on mid-size stocks
will be the ongoing focus of the fund.
We continue to be optimistic about long-term prospects in technology,
communications, health care, business services and specialty retailing.
We will continue to hold stocks in these industries and look for growth
opportunities in other industry sectors.
As for the rest of the fiscal year, the interest-rate uncertainty that
still hangs over the market is likely to make it difficult for stocks to
mount a sustained advance.
Therefore, we're taking a patient approach, while adding some stocks that
have the potential to perform
relatively well in a higher-interest-rate environment.
David Bayer
6-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 1994 $14.20
March 31, 1994 $14.39
Decrease $(0.19)
Distributions
April 1, 1994 - Sept. 30, 1994
From income $ -
From capital gains $ -
Total distributions $ -
Total return* (1.4%)
*The prospectus discusses the effect of the sales charge on the fund's
performance.
PAGE
<TABLE>
<CAPTION>
Your fund's ten largest holdings
Aggressive Equity Fund
(Pie chart) The ten holdings listed here make up 19.37% of the fund's net assets
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Sept. 30, 1994)
____________________________________________________________________________________
<S> <C> <C>
Intel 3.19% $22,404,450
Designs and manufactures the high-end microprocessor
chips and related components used in IBM and
IBM-compatible personal computers.
Parametric Technology 2.46 17,226,825
A producer of software products for the automation of
complex engineering tasks that are essential to the
development of virtually all manufactured products.
Oracle Systems 2.30 16,116,400
One of the largest independent vendors of database-
management software. They offer a variety of new
products, enhancements and applications software,
supported by excellent service.
Cisco Systems 1.97 13,794,263
A leader in the "router" segment of the networking
industry. Cisco routers allow interconnection of PCs,
minicomputers and mainframe to local and global
networks.
COMPAQ Computer 1.91 13,434,975
COMPAQ Computer Corp. manufactures high-performance
laptop, portable and desktop personal computers using
MS-DOS and OS/2 operating systems.
Home Depot 1.77 12,448,800
Home Depot sells a broad range of building materials
and home-improvement products via retail warehouse
stores.
Pfizer 1.52 10,693,637
A leading producer of pharmaceuticals, hospital
products, animal health items, non-prescription
medications and specialty chemicals.
Applied Materials 1.49 10,481,350
A leading independent producer of wafer-fabrication
systems for the semiconductor industry, including
manufacturers of advanced microprocessors, logic and
memory devices.
Synopsys 1.42 9,968,575
Synopsys develops, distributes and services high-tech
design automation software for designers of integrated
circuits and electronic systems.
Powersoft 1.34 9,395,800
Powersoft develops, markets and services Power Builder,
an application software development tool for the
client/server market.
</TABLE>
Equity Fund
(Picture of Tom Medcalf)
Tom W. Medcalf
Portfolio manager
From the portfolio manager
In the face of considerable volatility in the stock market, Strategy
Equity Fund generated a positive return during the first half of its
fiscal year. In general, the best returns came from our holdings among
stocks that benefited from the increasing strength of the U.S. economy -
- - namely, the chemical, paper, tobacco and health-care
sectors. The fund also received a boost from stocks of several foreign
companies.
The biggest challenge confronting the stock market during the past six
months was rising interest rates, which periodically put a damper on
stocks' performance. Particularly affected were financial services
stocks, such as those of banks and insurance companies, which are most
sensitive to interest-rate movements and comprised a higher-than-average
portion of the portfolio.
The interest-rate situation was compounded by an overall fickleness in
the market that resulted in stock groups going quickly in and out of
favor. Most often, "cyclical" stocks (those of companies that
usually do especially well in an expanding economy) fared the best. We
kept considerable exposure to that group, which included our chemical and
paper holdings.
Because of the volatility in the market, we were periodically able to
take advantage of lower-than-normal prices on stocks of good-quality
companies. Some examples included specialty chemical, auto, furniture and
appliance stocks, which we added at attractively low prices. Such
additions are consistent with our fundamental "value" strategy of
investing in companies with positive potential for growth that isn't
reflected in current stocks prices.
The key factor for the rest of the fiscal year continues to be the
direction of long-term interest rates. While we don't expect a
substantial rate run-up from here, we think the investment environment
will remain unsettled for the near term. Patience remains our watchword
while we keep the portfolio positioned for the long-term reward that
value investing has historically provided.
Thomas W. Medcalf
6-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 1994 $9.36
March 31, 1994 $9.17
Increase $0.19
Distributions
April 1, 1994 - Sept. 30, 1994
From income $0.09
From capital gains $ -
Total distributions $0.09
Total return* +3.1%
*The prospectus discusses the effect of the sales charge on the fund's
performance.
PAGE
<TABLE>
<CAPTION>
Your fund's ten largest holdings
Equity Fund
(Pie chart) The ten holdings listed here make up 11.36% of the fund's net assets
____________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Sept. 30, 1994)
____________________________________________________________________________________
<S> <C> <C>
Johnson & Johnson 1.30% $15,332,625
Johnson & Johnson is a major producer of health-care
products, including consumer products, medical and
dental devices and products and a wide variety of
ethical and over-the-counter drugs.
Royal Dutch Petroleum 1.17 13,851,375
Royal Dutch Petroleum Co., which includes Royal Dutch
(the Dutch version) and Shell Transport (the English
version) is a major oil company.
Dow Chemical 1.16 13,693,750
The second-largest U.S. chemical company, Dow
produces commercial products and provides
financial services.
Reynolds Metals 1.14 13,420,125
Reynolds Metals is a fully integrated aluminum
manufacturer engaged in mining bauxite, and producing
ingot and semi-fabricated and finished products.
General Electric 1.12 13,234,375
General Electric is a diversified company with interest
in manufacturing, broadcasting (NBC), financial services
and technology.
Amoco Corp. 1.10 13,035,000
Amoco Corp. is one of a major integrated domestic oil
and gas company known traditionally for its extensive
petroleum marketing operations.
Merck 1.10 12,922,000
Merck & Co. is one of the world's largest drug
manufacturers.
Black & Decker 1.09 12,906,250
Black & Decker is the largest producer of power tools
and the leading supplier of household products and
small appliances.
Raytheon 1.09 12,825,000
Raytheon designs, manufactures and sells electronic
devices, equipment and systems for government and
commercial use. About two-thirds of sales are to the
military (missiles and electronics).
SmithKline Beecham 1.09 12,813,125
SmithKline Beecham is one of the world's largest
pharmaceutical and health-care companies, providing
a wide range of prescription and over-the-counter
drugs and clinical laboratory services.
</TABLE>
Income Fund
(Picture of Jack Utter)
Jack Utter
Portfolio manager
From the portfolio manager
A downturn in the bond market that began in earnest last February
continued during the first half of the fund's fiscal year, resulting in
a negative performance for the period.
Based on ongoing concern that robust economic growth might soon lead to
rapidly rising inflation, the Federal Reserve continued to raise short-
term interest rates last spring and summer. That strategy is based on the
expectation that higher rates slow down the economy, which in turn takes
upward pressure off inflation. In the meantime, longer-term interest
rates took their cue from short rates, and as they rose, bond prices, as
they automatically do when rates go up, fell. The bonds in this portfolio
were similarly affected, but because of our considerable exposure to
corporate bonds, which fared better than some other sectors, the effect
was less pronounced.
We responded to the environment by employing two primary strategies -
reducing the average maturity of the bonds in the portfolio and raising
the level of cash reserves. These "defensive" measures are designed to
lessen the portfolio's sensitivity to interest-rate changes, and they
provided that effect during the rest of the period. The maturity
reduction was largely achieved by selling some corporate and long-
maturity U.S. Treasury securities and adding a
modest amount of mortgage-backed securities, which generally have shorter
maturities and, at the time, appeared to offer better
price-appreciation potential.
As for the rest of the fiscal year, we plan to stay with our fairly
defensive structure until we see signs that higher interest rates are
having the intended effect of slowing down the economy to a non-
inflationary rate of growth. In the meantime, we expect our portfolio mix
- - including corporate, government, mortgage-backed and foreign bonds -
to continue to provide a healthy dividend for income-oriented investors.
Jack Utter
6-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 1994 $5.89
March 31, 1994 $6.23
Decrease $(0.34)
Distributions
April 1, 1994 - Sept. 30, 1994
From income $0.20
From capital gains $ -
Total distributions $0.20
Total return* (2.1%)
*The prospectus discusses the effect of the sales charge on the fund's
performance.
PAGE
<TABLE>
<CAPTION>
Income Fund
Your's fund's ten largest holdings
(Pie chart) The ten holdings listed here make up 8.24% of the fund's net assets
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Sept. 30, 1994)
____________________________________________________________________________________
<S> <C> <C>
General Motors Acceptance 1.46% $9,912,500
6.375% 1996
Auburn Hills Trust .98 6,643,750
12.375% Guaranteed Exchangeable Certificates 2020
Turner Broadcasting System .83 5,649,375
8.375% Sr Notes 2013
Gulf States Utilities .83 5,647,500
8.70% 1st Mortgage 2024
Texas Utilities Electric .75 5,077,625
9.75% 1st Mortgage 2021
ABN Amro .73 4,984,375
7.75% 2023
Placer Dome .68 4,606,250
7.125% 2003
CoreStates Capital .67 4,595,625
9.375% Guaranteed Sub Notes 2003
Midland Cogeneration Venture .66 4,483,421
10.33% Sub Secured Lease-Backed Obligation 2002
Property Trust American .65 4,406,250
7.50% 2014
Excludes U.S. Treasury and government agencies holdings that total 16% of the fund's
net assets.
</TABLE>
Short-Term Income Fund
(Picture of James Snyder)
James W. Snyder
Portfolio manager
From the portfolio manager
An extended downturn in the fixed-income market slightly reduced the
fund's net asset value during the first half of the fiscal year. That
was offset, however, by the fund's dividend, leaving the value of a
shareholder's investment virtually unchanged for the period.
The fixed-income market's troubles stemmed from a rapid rise in
interest rates, which began last February and continued essentially
throughout the next several months. While higher rates eventually
enhance the yield on fixed-income mutual funds, their immediate effect
is to reduce the value of the securities such funds hold at the time.
That, in turn, lowers the net asset value.
As for changes in the structure of the portfolio, we allowed the level
of cash reserves to build up to more than 35% by the end of the
period, which helped offset the effect of the interest-rate rise. In
addition, we greatly scaled back our holdings of adjustable-rate
mortgage-backed securities. This reduction proved to be beneficial, as
those issues performed poorly during the six months. We did, however,
maintain a substantial amount of U.S. Treasury securities to provide
income as well lessen the volatility of the fund's net asset value.
For the upcoming months, we believe the best way to achieve our
primary goal of limiting fluctuations in net asset value is to
continue to follow a very conservative course - keeping a high cash
position, while selectively adding some U.S. Treasury securities when
attractive buying opportunities become available.
James W. Snyder
6-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 1994 $0.98
March 31, 1994 $1.00
Decrease $(0.02)
Distributions
April 1, 1994 - Sept. 30, 1994
From income $0.02
From capital gains $ -
Total distributions $0.02
Total return* +0.2%
*The prospectus discusses the effect of the sales charge on the fund's
performance.
Worldwide Growth Fund
(Picture of Paul Hopkins)
Paul Hopkins
Portfolio manager
(Picture of Peter Lamaison)
Peter Lamaison
Portfolio manager
From the portfolio managers
The fund took advantage of generally strong stock markets and
currencies in many foreign countries during the first half of the
fiscal year, ultimately posting a solid gain.
Although we maintained investments in many countries, our greatest
exposure was to Japan. The strategy proved to be highly productive
this year, as that market rose and the yen appreciated against the
dollar. (U.S. investors benefit from appreciating currencies in
foreign countries, but are penalized when those currencies fall in
value versus the dollar.) Prior to this year, we enjoyed our greatest
gains in Southeast Asia, including Malaysia, Singapore and Hong Kong,
which made spectacular advances during the fourth quarter of 1993.
After experiencing downturns early in 1994, these markets,
particularly Singapore and Malaysia, have since rebounded.
Elsewhere, our new positions in Mexico and Argentina, established this
past summer when stocks prices in those countries had declined,
provided a boost late in the fiscal year. In other major markets where
we were invested, Europe provided good results until the spring of
this year, when we reduced our holdings there in time to avoid much of
the impact of a subsequent downturn. Australia, too, was positive
overall for the portfolio. Among our major investment markets, the
only disappointment of note was the United Kingdom.
At the close of the period, our greatest investment concentrations
were in Japan, the United Kingdom and Australia, in that order. We
have no exposure to the United States, as we continue to believe the
potential for gain is better in other markets over the near term.
Paul Hopkins
Peter Lamaison
6-month performance
(All figures per share)
Net asset value (NAV)
Sept. 30, 1994 $5.67
March 31, 1994 $5.37
Increase $0.30
Distributions
April 1, 1994 - Sept. 30, 1994
From income $ -
From capital gains $ -
Total distributions $ -
Total return* +5.6%
*The prospectus discusses the effect of the sales charge on the fund's
performance.
PAGE
<TABLE>
Worldwide Growth Fund
<CAPTION>
Your fund's ten largest holdings
(Pie chart) The ten holdings listed here make up 15.38% of the fund's net assets
____________________________________________________________________________________
Percent Value
(of fund's net assets) (as of Sept. 30, 1994)
____________________________________________________________________________________
<S> <C> <C>
Telefonica (Spain) 2.27% $6,816,490
Spain's monopoly operator of basic telephone and telex
services.
Cemex & Tolmex Series B ADR (Mexico) 1.91 5,751,188
The sixth-largest U.S. telephone holding company, it
provides local phone service in parts of California
and Nevada.
Tokio Marine & Fire (Japan) 1.54 4,646,070
Tokio Marine is the largest and one of the oldest
non-life insurance companies in Japan. The company
is part of the prestigious Mitsubishi industrial group.
Societe Elf Acquitaine (France) 1.45 4,361,062
A leading French oil company.
Sumitomo Electric Industries (Japan) 1.43 4,304,080
Japan's leading wire and cable manufacturer, it
dominates the market for optical fiber cable used
in communications.
Pasminco (Australia) 1.43 4,298,792
Australia's largest miner/smelter of lead and zinc.
Lyonnaise des Eaux Dumez (France) 1.38 4,140,423
A leading water utility that has diversified into
communications and construction.
Siebe (United Kingdom) 1.34 4,029,948
A United Kingdom engineering company with significant
U.S. presence via Foxboro in control devices and process
systems.
Rank Organisation (United Kingdom) 1.34 4,023,995
A major leisure-time company with interests in
film, television, travel and lodging.
Empresas ICA Sociedad Controladora (Mexico) ADR 1.29 3,870,000
The largest construction company in Mexico.
</TABLE>
PAGE
Financial statements
<TABLE>
Statements of assets and liabilities
IDS Strategy Fund, Inc.
Sept. 30, 1994
<CAPTION>
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
Aggressive
Equity Equity Income
Fund Fund Fund
_____________________________________________________________________________________________________________________________
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
Investments in securities, at value (Note 1)
(identified cost $608,579,329, $1,139,351,926 and $693,369,648) $716,736,589 $1,167,584,354 $660,541,563
Cash in bank on demand deposit -- 3,901,518 --
Dividends and accrued interest receivable 453,937 3,373,734 13,148,720
Receivable for investment securities sold 18,025,946 23,021,341 17,061,087
Receivable for foreign currency contracts held, at value
(Notes 1 and 8) -- 11,417,052 2,958,480
U.S. government securities held as collateral (Note 6) -- 18,858,377 25,843,064
_____________________________________________________________________________________________________________________________
Total assets 735,216,472 1,228,156,376 719,552,914
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 7,983,006 -- 3,143,687
Dividends payable to shareholders -- 78,536 347,303
Payable for foreign currency contracts held, at value
(Notes 1 and 8) -- 11,308,256 2,961,920
Payable for investment securities purchased 22,333,568 9,698,805 4,245,138
Payable upon return of securities loaned (Note 6) 1,591,200 25,874,377 27,423,064
Accrued investment management and services fee 357,082 521,633 293,862
Accrued 12b-1 fee 448,518 737,910 471,111
Accrued transfer agency fee 163,234 208,573 106,750
Other accrued expenses 364,093 197,700 235,934
_____________________________________________________________________________________________________________________________
Total liabilities 33,240,701 48,625,790 39,228,769
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $701,975,771 $1,179,530,586 $680,324,145
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 49,450,588, 126,083,198 and 115,444,256 shares $ 494,506 $ 1,260,832 $ 1,154,443
Additional paid-in capital 592,319,918 1,095,510,164 706,145,965
Undistributed net investment income (1,149,749) 673,354 677
Accumulated net realized gain (Note 1) 2,153,836 53,745,012 5,878,022
Unrealized appreciation (depreciation) (Notes 7 and 8) 108,157,260 28,341,224 (32,854,962)
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding
capital stock $701,975,771 $1,179,530,586 $680,324,145
_____________________________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 14.20 $ 9.36 $ 5.89
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of assets and liabilities
IDS Strategy Fund, Inc.
Sept. 30, 1994
<CAPTION>
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
Short-Term Worldwide
Income Growth
Fund Fund
_____________________________________________________________________________________________________________________________
(Unaudited) (Unaudited)
<S> <C> <C>
Investments in securities, at value (Note 1)
(identified cost $217,312,688 and $294,683,406) $213,661,928 $311,673,497
Cash in bank on demand deposit -- 1,788,893
Dividends and accrued interest receivable 1,901,986 1,236,505
Receivable for investment securities sold -- 1,351,329
Receivable for foreign currency contracts held, at value (Notes 1 and 8) -- 32,523,646
U.S. government securities held as collateral (Note 6) -- 7,462,476
_____________________________________________________________________________________________________________________________
Total assets 215,563,914 356,036,346
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 3,205,909 --
Dividends payable to shareholders 65,877 --
Payable for foreign currency contracts held, at value (Notes 1 and 8) -- 32,870,533
Payable for investment securities purchased -- 5,181,265
Payable upon return of securities loaned (Note 6) -- 16,752,476
Accrued investment management and services fee 92,062 209,037
Accrued 12b-1 fee 149,414 202,299
Accrued transfer agency fee 32,413 79,661
Other accrued expenses 131,230 168,147
_____________________________________________________________________________________________________________________________
Total liabilities 3,676,905 55,463,418
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $211,887,009 $300,572,928
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 216,523,952 and 52,996,955 shares $ 2,165,240 $ 529,970
Additional paid-in capital 214,957,607 279,382,137
Undistributed net investment income 108,947 301,764
Accumulated net realized gain (loss) (Note 1) (1,694,025) 3,715,853
Unrealized appreciation (depreciation) (Note 8) (3,650,760) 16,643,204
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $211,887,009 $300,572,928
_____________________________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 0.98 $ 5.67
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of operations
IDS Strategy Fund, Inc.
Six months ended Sept. 30, 1994
<CAPTION>
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
Aggressive
Equity Equity Income
Fund Fund Fund
_____________________________________________________________________________________________________________________________
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
Income:
Dividends (net of foreign taxes withheld of $9,108, $216,270
and $5,076) (Note 1) $2,178,989 $15,023,333 $ 574,113
Interest (net of foreign taxes withheld of $0, $30,054 and $0) 2,754,599 4,468,320 28,202,937
_____________________________________________________________________________________________________________________________
Total income 4,933,588 19,491,653 28,777,050
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 2,055,548 3,001,174 1,873,513
12b-1 fee 2,615,387 4,228,463 2,994,070
Transfer agency fee 978,452 1,240,163 663,168
Compensation of directors 33,974 8,414 6,965
Compensation of officers 3,051 4,423 3,424
Custodian fees 68,242 108,439 37,582
Postage 188,283 168,712 114,576
Registration fees 50,844 62,773 100,557
Reports to shareholders 63,912 40,280 30,086
Audit fees 8,750 8,750 9,250
Administrative 3,307 4,675 4,723
Other 13,587 12,093 9,441
_____________________________________________________________________________________________________________________________
Total expenses 6,083,337 8,888,359 5,847,355
_____________________________________________________________________________________________________________________________
Investment income (loss) -- net (1,149,749) 10,603,294 22,929,695
_____________________________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________________________
Net realized gain (loss) on security and foreign currency transactions
(including gain (loss) of $(476), $(94,296) and $2,508 from
foreign currency transactions) (Note 3) (5,634,693) 12,788,070 (8,264,077)
Net realized loss on closed financial futures contracts -- -- (326,938)
Net realized gain on closed options contracts written (Note 4) -- -- 101,726
_____________________________________________________________________________________________________________________________
Net realized gain (loss) on investments and foreign currency (5,634,693) 12,788,070 (8,489,289)
Net change in unrealized appreciation or depreciation (631,584) 9,311,694 (30,861,391)
_____________________________________________________________________________________________________________________________
Net gain (loss) on investments and foreign currency (6,266,277) 22,099,764 (39,350,680)
_____________________________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations $(7,416,026) $32,703,058 $(16,420,985)
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of operations
IDS Strategy Fund, Inc.
Six months ended Sept. 30, 1994
<CAPTION>
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
Short-Term Worldwide
Income Growth
Fund Fund
_____________________________________________________________________________________________________________________________
(Unaudited) (Unaudited)
<S> <C> <C>
Income:
Dividends (net of foreign taxes withheld of $190,520) $ -- $2,595,122
Interest 5,605,840 616,424
_____________________________________________________________________________________________________________________________
Total income 5,605,840 3,211,546
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 556,132 1,125,094
12b-1 fee 900,757 1,096,658
Transfer agency fee 196,741 448,324
Compensation of directors 3,334 5,111
Compensation of officers 1,574 578
Custodian fees 25,840 114,033
Postage 34,472 54,389
Registration fees 71,671 43,945
Reports to shareholders 8,654 9,534
Audit fees 6,750 8,500
Administrative 2,599 1,021
Other 1,452 2,595
_____________________________________________________________________________________________________________________________
Total expenses 1,809,976 2,909,782
_____________________________________________________________________________________________________________________________
Investment income -- net 3,795,864 301,764
_____________________________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________________________
Net realized gain (loss) on security and foreign currency transactions
(including loss of $1,256,127 from foreign currency
transactions on Worldwide Growth Fund) (Note 3) (1,816,930) 8,594,291
Net change in unrealized appreciation or depreciation (1,622,955) 4,118,552
_____________________________________________________________________________________________________________________________
Net gain (loss) on investments and foreign currency (3,439,885) 12,712,843
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations $ 355,979 $13,014,607
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of changes in net assets
IDS Strategy Fund, Inc.
<CAPTION>
_____________________________________________________________________________________________________________________________
Operations and distributions
_____________________________________________________________________________________________________________________________
Aggressive Equity Equity
Fund Fund
___________________________________ ____________________________________
Six months ended Year Ended Six months ended Year ended
9/30/94 3/31/94 9/30/94 3/31/94
(Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Investment income (loss) -- net $(1,149,749) $ (6,219,834) $10,603,294 $17,634,417
Net realized gain (loss) on investments
and foreign currency (5,634,693) 41,579,148 12,788,070 81,083,334
Net change in unrealized appreciation or
depreciation (631,584) (12,150,355) 9,311,694 (57,859,852)
_____________________________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting
from operations (7,416,026) 23,208,959 32,703,058 40,857,899
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income -- -- (11,290,938) (16,824,052)
Net realized gains -- (57,232,536) -- (64,484,810)
Excess distribution of realized gains (Note 1) -- (92) -- (251,175)
_____________________________________________________________________________________________________________________________
Total distributions -- (57,232,628) (11,290,938) (81,560,037)
_____________________________________________________________________________________________________________________________
Capital share transactions (Note 5)
_____________________________________________________________________________________________________________________________
Proceeds from sales or transfers from other funds 95,836,228 169,955,924 166,077,074 322,046,101
Reinvestment of distributions at net asset value -- 57,007,903 11,122,796 80,767,882
Payments for redemptions or transfers to other
funds (Note 2) (38,696,667) (122,745,185) (50,399,212) (89,266,723)
_____________________________________________________________________________________________________________________________
Increase in net assets from
capital share transactions 57,139,561 104,218,642 126,800,658 313,547,260
_____________________________________________________________________________________________________________________________
Total increase in net assets 49,723,535 70,194,973 148,212,778 272,845,122
Net assets at beginning of period 652,252,236 582,057,263 1,031,317,808 758,472,686
_____________________________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income
of $(1,149,749) and $0, $673,354 and $1,360,998) $701,975,771 $652,252,236 $1,179,530,586 $1,031,317,808
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of changes in net assets
IDS Strategy Fund, Inc.
<CAPTION>
_____________________________________________________________________________________________________________________________
Operations and distributions
_____________________________________________________________________________________________________________________________
Income Short-Term Income
Fund Fund
___________________________________ ____________________________________
Six months ended Year Ended Six months ended Year ended
9/30/94 3/31/94 9/30/94 3/31/94
(Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Investment income -- net $22,929,695 $ 45,452,151 $3,795,864 $ 7,336,692
Net realized gain (loss) on investments
and foreign currency (8,489,289) 25,823,632 (1,816,930) 845,891
Net change in unrealized appreciation or
depreciation (30,861,391) (46,913,616) (1,622,955) (6,042,618)
_____________________________________________________________________________________________________________________________
Net increase (decrease) in net assets
resulting from operations (16,420,985) 24,362,167 355,979 2,139,965
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (23,300,709) (45,573,627) (3,731,720) (7,385,954)
Net realized gains -- (8,394,602) -- (677,373)
_____________________________________________________________________________________________________________________________
Total distributions (23,300,709) (53,968,229) (3,731,720) (8,063,327)
_____________________________________________________________________________________________________________________________
Capital share transactions (Note 5)
_____________________________________________________________________________________________________________________________
Proceeds from sales or transfers from other funds 83,158,225 382,357,534 126,578,217 218,094,276
Reinvestment of distributions at net asset value 21,079,378 48,115,538 3,588,700 7,670,363
Payments for redemptions or transfers to other
funds (Note 2) (135,476,050) (229,945,785) (106,175,117) (205,406,418)
_____________________________________________________________________________________________________________________________
Increase (decrease) in net assets from
capital share transactions (31,238,447) 200,527,287 23,991,800 20,358,221
_____________________________________________________________________________________________________________________________
Total increase (decrease) in net assets (70,960,141) 170,921,225 20,616,059 14,434,859
Net assets at beginning of period 751,284,286 580,363,061 191,270,950 176,836,091
_____________________________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income
of $677 and $371,691, $108,947 and $44,803) $680,324,145 $751,284,286 $211,887,009 $191,270,950
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of changes in net assets
IDS Strategy Fund, Inc.
<CAPTION>
_____________________________________________________________________________________________________________________________
Operations and distributions
_____________________________________________________________________________________________________________________________
Worldwide Growth
Fund
____________________________________
Six months ended Year ended
9/30/94 3/31/94
(Unaudited)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Investment income (loss) -- net $ 301,764 $ (385,732)
Net realized gain on investments and foreign currency 8,594,291 6,245,625
Net change in unrealized appreciation or depreciation 4,118,552 7,260,496
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations 13,014,607 13,120,389
_____________________________________________________________________________________________________________________________
Capital share transactions (Note 5)
_____________________________________________________________________________________________________________________________
Proceeds from sales or transfers from other funds 84,294,012 166,514,051
Payments for redemptions or transfers to other funds (Note 2) (12,055,995) (15,761,295)
_____________________________________________________________________________________________________________________________
Increase in net assets from capital share transactions 72,238,017 150,752,756
_____________________________________________________________________________________________________________________________
Total increase in net assets 85,252,624 163,873,145
Net assets at beginning of period 215,320,304 51,447,159
_____________________________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income
of $301,764 and $0) $300,572,928 $215,320,304
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
PAGE
Notes to financial statements
IDS Strategy Fund, Inc.
(Unaudited as to Sept. 30, 1994)
______________________________________________________________________________
1. Summary of significant accounting policies
IDS Strategy Fund, Inc. (Strategy) is registered
under the Investment Company Act of 1940 (as amended)
as a diversified, open-end management investment
company. Significant accounting policies followed by
Strategy are summarized below:
Valuation of securities
All securities are valued at the close of each
business day. Securities traded on national
securities exchanges or included in national market
systems are valued at the last quoted sales price;
securities for which market quotations are not
readily available, including illiquid securities, are
valued at fair value according to methods selected in
good faith by the board of directors. Determination
of fair value involves, among other things, reference
to market indexes, matrixes and data from independent
brokers. Short-term securities maturing in more than
60 days from the valuation date are valued at the
market price or approximate market value based on
current interest rates; those maturing in 60 days or
less are valued at amortized cost.
Options transactions
In order to produce incremental earnings, protect
gains, and facilitate buying and selling of
securities for investment purposes, each fund may buy
or write options traded on any U.S. or foreign
exchange or in the over-the-counter market where the
completion of the obligation is dependent upon the
credit standing of the other party. The fund also may
buy and sell put and call options and write covered
call options on portfolio securities and may write
cash-secured put options. The risk in writing a call
option is that the fund gives up the opportunity of
profit if the market price of the security increases.
The risk in writing a put option is that the fund may
incur a loss if the market price of the security
decreases and the option is exercised. The risk in
buying an option is that the fund pays a premium
whether or not the option is exercised. The fund also
has the additional risk of not being able to enter
into a closing transaction if a liquid secondary
market does not exist.
Option contracts are valued daily at the closing
prices on their primary exchanges and unrealized
appreciation or depreciation is recorded. The fund
will realize a gain or loss upon expiration or
closing of the option transaction. When an option is
exercised, the proceeds on sales for a written call
option, the purchase cost for a written put option or
the cost of a security for a purchased put or call
option is adjusted by the amount of premium received
or paid.
Futures transactions
In order to gain exposure to or protect itself from
changes in the market, each fund may buy and sell
stock index or interest rate futures contracts traded
on any U.S. or foreign exchange. Each 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, each 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, exchanged 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.
Each fund may enter into forward foreign currency
exchange contracts for operational purposes. The net
U.S. dollar value of foreign currency underlying all
contractual commitments held by each fund and the
resulting unrealized appreciation or depreciation are
determined using foreign currency exchange rates from
an independent pricing service. Each fund is subject
to the credit risk that the other party will not
complete the obligations of the contract.
Securities purchased on a when-issued basis
Delivery and payment for securities that have been
purchased by the fund on a forward-commitment or
when-issued basis can take place one month or more
after the transaction date. During this period, such
securities are subject to market fluctuations, and
they may affect the fund's gross assets the same as
owned securities.
During the six months ended Sept. 30, 1994, Income
Fund entered into transactions to sell purchase
commitments to third parties at the current market
values and concurrently acquired other purchase
commitments for similar securities at later dates. As
an inducement for a fund to "roll over" its purchase
commitments, the fund receives negotiated fees. For
the six months ended Sept. 30, 1994, such fees earned
by the fund amounted to approximately $82,000 for
Income Fund. Such fees have been classified as
interest income.
Federal taxes
Since Strategy'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. For federal
income tax purposes, each fund is treated as a
separate taxable entity.
Net investment income (loss) and net realized gains
(losses) may differ for financial statement and tax
purposes primarily because of the deferral of losses
on certain futures contracts, the recognition of
certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred
due to "wash sale" transactions. The character of
distributions made during the year from net
investment income or net realized gains may differ
from their ultimate characterization for federal
income tax purposes. The effect on dividend
distributions of certain book-to-tax differences is
presented as "excess distributions" in the statement
of changes in net assets. Also, due to the timing of
dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that
the income or realized gains (losses) were recorded
by the fund.
Dividends to shareholders
Dividends from net investment income, declared and
paid annually by the end of the calendar year for
Aggressive Equity and Worldwide Growth Funds,
declared and paid quarterly for Equity Fund and
declared daily and paid quarterly for Income and
Short-Term Income Funds, are reinvested in additional
shares of each fund at net asset value or payable in
cash. Capital gains, when available, are distributed
along with the last income dividend at the end 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, each
fund pays IDS Financial Corporation (IDS) a fee for
managing its investments, recordkeeping and other
specified services. The fee is a percentage of each
fund's average daily net assets consisting of a group
asset charge in reducing percentages from 0.46% to
0.32% annually on the combined net assets of all non-
money market funds in the IDS MUTUAL FUND GROUP and
an individual annual asset charge of 0.23% of average
daily net assets for Aggressive Equity, 0.14% for
Equity, 0.13% for Income and Short-Term Income and
0.46% for Worldwide Growth. From its fee, IDS pays
IDS International, Inc. a subadvisory fee equal to
0.35% of Worldwide Growth Fund's average daily net
assets.
Each fund also pays IDS a distribution fee equal, on
an annual basis, to 1% of the lesser of (i) aggregate
purchase payments for shares sold since inception,
including purchase payments for shares exchanged from
another of the Strategy Funds and the value of all
shares exchanged from another fund in the IDS MUTUAL
FUND GROUP (excluding appreciation and reinvested
income dividends and capital gain distributions),
less the aggregate amount of any redemptions of
purchase payments, or (ii) that fund's average daily
net assets. Of the distribution fee, the first 0.75%
is for distribution of fund shares and the balance of
the fee, up to 0.25%, represents service fees for
personal services rendered to shareholders of the
fund.
Each fund also pays IDS a transfer agency fee at an
annual rate of $16 per shareholder account for
Aggressive Equity, Equity and Worldwide Growth Funds
and $16.50 per shareholder account for Income and
Short-Term Income Funds. 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 and excluding distribution
fees under the Plan of Distribution) of each fund in
excess of the most restrictive applicable state
expense limitation.
Contingent deferred sales charges deducted by IDS
Financial Services Inc., the funds' distributor, for
the six months ended Sept. 30, 1994, aggregated
$1,512,089: $301,047 for Aggressive Equity, $430,633
for Equity, $443,977 for Income, $209,179 for Short-
Term Income and $127,253 for Worldwide Growth Funds.
Each fund also pays custodian fees to IDS Trust
Company, an affiliate of IDS.
Strategy 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 each fund recognizes the cost of payments
during the time the directors serve on the board. The
retirement plan expense for Strategy Fund for the six
months ended Sept. 30, 1994, aggregated $12,023:
$4,055 for Aggressive Equity, $5,022 for Equity,
$609 for Income, $589 for Short-Term Income and
$1,748 for Worldwide Growth Funds.
______________________________________________________________________________
3. Securities transactions
For the six months ended Sept. 30, 1994, cost of
purchases and proceeds from sales (other than short-
term obligations) aggregated $323,247,009 and
$288,149,525 for Aggressive Equity, $455,118,041 and
$410,535,065 for Equity, $228,226,735 and
$228,790,282 for Income, $62,089,730 and $54,750,106
for Short-Term Income and $112,368,832 and
$58,584,869 for Worldwide Growth Funds. Realized
gains and losses are determined on an identified cost
basis.
Brokerage commissions paid to brokers affiliated with
IDS were $23,068, $48,134 and $1,164 for Aggressive
Equity, Equity Fund and Worldwide Growth funds,
respectively, for the six months ended Sept. 30,
1994.
______________________________________________________________________________
4. Options contracts written
The number of contracts and premium amounts
associated with call options contracts written in
Income Fund is as follows:
Six months ended
Sept. 30, 1994
Contracts Premium
_________________________________________________
Balance March 31, 1994 -- $ --
Opened 200 101,726
Closed (200) (101,726)
_________________________________________________
Balance Sept. 30, 1994 -- $ --
_________________________________________________
______________________________________________________________________________
<TABLE>
5. Capital share transactions
Transactions in shares of each fund for the periods
indicated are as follows:
Number of shares:
<CAPTION>
________________________________________________________________________________________________________________________
Aggressive Equity Fund Equity Fund Income Fund
_____________________________ ______________________________ ______________________________
Six months ended Year ended Six months ended Year ended Six months ended Year ended
9/30/94 3/31/94 9/30/94 3/31/94 9/30/94 3/31/94
(Unaudited) (Unaudited) (Unaudited)
________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Sold or transferred
from other funds 6,925,302 11,014,310 17,724,827 33,138,214 13,761,328 58,097,430
Issued for reinvested
distributions -- 3,765,876 1,204,166 8,433,793 3,541,692 7,354,593
Redeemed or transferred
to other funds (2,798,548) (7,951,989) (5,372,323) (9,197,496) (22,476,270) (35,064,814)
________________________________________________________________________________________________________________________
Net increase (decrease) 4,126,754 6,828,197 13,556,670 32,374,511 (5,173,250) 30,387,209
________________________________________________________________________________________________________________________
Number of shares:
<CAPTION>
________________________________________________________________________________________________________________________
Short-Term Income Fund Worldwide Growth Fund
______________________________ ______________________________
Six months ended Year ended Six months ended Year ended
9/30/94 3/31/94 9/30/94 3/31/94
(Unaudited) (Unaudited)
________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold or transferred from other funds 128,614,035 213,765,797 15,042,043 31,676,228
Issued for reinvested distributions 3,658,608 7,523,292 -- --
Redeemed or transferred to other funds (107,930,516) (201,051,396) (2,146,449) (2,983,522)
________________________________________________________________________________________________________________________
Net increase 24,342,127 20,237,693 12,895,594 28,692,706
________________________________________________________________________________________________________________________
</TABLE>
______________________________________________________________________________
6. Lending of fund securities
At Sept. 30, 1994, securities valued at $1,535,950
for Aggressive Equity, $25,367,036 for Equity,
$26,567,300 for Income and $15,958,633 for Worldwide
Growth were on loan to brokers. For collateral,
Aggressive Equity received $1,591,200 in cash, Equity
received $7,016,000 in cash and U.S. government
securities valued at $18,858,377, Income received
$1,580,000 in cash and U.S. government securities
valued at $25,843,064 and Worldwide Growth received
$9,290,000 in cash and U.S. government securities
valued at $7,462,476. Income from securities lending
amounted to $90,663, $86,382, $20,034 and $30,364 for
Aggressive Equity, Equity, Income and Worldwide
Growth Funds, respectively, for the six months ended
Sept. 30, 1994. 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.
______________________________________________________________________________
7. Interest rate futures contracts
At Sept. 30, 1994, investments in securities in
Income Fund included securities valued at $558,314
that were pledged as collateral to cover initial
margin deposits on 150 purchase contracts. The market
value of the open contracts at Sept. 30, 1994,
was $14,840,625 with a net unrealized loss of
$23,437.
______________________________________________________________________________
8. Foreign currency contracts
At Sept. 30, 1994, Equity, Income and Worldwide
Growth Funds had entered into currency exchange
contracts that obligate the fund to deliver
currencies at specified future dates. The unrealized
appreciation (depreciation) of $108,796, $(3,440) and
$(346,887), respectively, on these contracts are
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 Sept. 30, 1994 received Sept. 30, 1994
_____________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Equity Oct. 4, 1994 1,098,887 $ 257,656 257,562 $ 257,562
South African Rand U.S. Dollar
Oct. 4, 1994 540,131 126,645 127,260 127,260
South African Rand U.S. Dollar
Oct. 4, 1994 415,930 97,523 97,488 97,488
South African Rand U.S. Dollar
Oct. 4, 1994 271,510 63,661 63,585 63,585
South African Rand U.S. Dollar
Nov. 25, 1994 16,700,000 10,762,771 10,871,157 10,871,157
Deutsche Mark U.S. Dollar
___________ ___________
$11,308,256 $11,417,052
______________________________________________________________________________________________________________________________
Income Nov. 7, 1994 4,000,000 $2,961,920 2,958,480 $2,958,480
Australian Dollar U.S. Dollar
______________________________________________________________________________________________________________________________
Worldwide Oct. 3, 1994 345,666 $ 345,666 219,494 $ 345,594
Growth U.S. Dollar British Pound
Oct. 3, 1994 194,967 194,967 323,629 194,906
U.S. Dollar New Zealand Dollar
Oct. 4, 1994 8,688,306 1,124,380 1,124,380 1,124,380
Hong Kong Dollar U.S. Dollar
Oct. 4, 1994 602,840 602,840 59,397,882 599,676
U.S. Dollar Japanese Yen
Oct. 4, 1994 175,702 175,702 237,386 175,725
U.S. Dollar Australian Dollar
Oct. 5, 1994 269,125 269,125 170,601 268,611
U.S. Dollar British Pound
Oct. 6, 1994 798,290 798,290 2,045,778 798,041
U.S. Dollar Malaysian Dollar
Oct. 6, 1994 227,893 227,893 144,524 227,553
U.S. Dollar British Pound
Oct. 31, 1994 927,442,991 594,515 597,425 597,425
Italian Lira U.S. Dollar
Oct. 31, 1994 297,484,694 190,695 190,557 190,557
Italian Lira U.S. Dollar
Oct. 31, 1994 1,176 1,176 1,838,314 1,178
U.S. Dollar Italian Lira
Dec. 30, 1994 2,786,560,000 28,345,284 28,000,000 28,000,000
Japanese Yen U.S. Dollar
___________ ___________
$32,870,533 $32,523,646
</TABLE>
______________________________________________________________________________
9. Illiquid securities
At Sept. 30, 1994, investments in securities for
Income Fund 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 Sept. 30, 1994, was $4,424,969 which
represents 0.7% 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.
<PAGE>
<TABLE>
10. Financial highlights
The tables below show certain important information
for evaluating the funds' results.
Aggressive Equity Fund
Fiscal period ended March 31,
Per share income and capital changes*
<CAPTION>
1994** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $14.39 $15.12 $15.37 $13.73 $12.42 $9.98
beginning of period
Income from investment operations:
Net investment
income (loss) (.02) (.14) (.11) (.03) .15 .01
Net gains (losses) (.17) .83 .61 2.35 2.01 2.43
(both realized
and unrealized)
Total from investment (.19) .69 .50 2.32 2.16 2.44
operations
Less distributions:
Dividends from net -- -- -- (.01) (.16) --
investment income
Distributions from -- (1.42) (.75) (.67) (.69) --
realized gains
Total distributions -- (1.42) (.75) (.68) (.85) --
Net asset value, $14.20 $14.39 $15.12 $15.37 $13.73 $12.42
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period $702 $652 $582 $473 $352 $283
(in millions)
Ratio of expenses to 1.85%*** 1.71% 1.75% 1.62% 1.61% 1.49%
average daily net assets
Ratio of net income (loss) (.35%)*** (.99%) (.82%) (.27%) 1.17% .14%
to average daily net assets
Portfolio turnover rate 52% 55% 49% 52% 64% 33%
(excluding short-term
securities)
Total return+ (1.4%)++ 4.1% 3.2% 16.8% 18.9% 24.4%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Sept. 30, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect contingent deferred sales charge.
++For the fiscal period ended Sept. 30, 1994, the annualized total return is (2.7%).
<PAGE>
PAGE
Equity Fund
Financial highlights
Fiscal period ended March 31,
Per share income and capital changes*
<CAPTION>
1994** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $9.17 $9.46 $8.90 $8.22 $7.92 $7.96
beginning of period
Income from investment operations:
Net investment income .09 .18 .19 .22 .26 .29
Net gains (losses) .19 .37 1.18 .98 .48 .51
(both realized
and unrealized)
Total from investment .28 .55 1.37 1.20 .74 .80
operations
Less distributions:
Dividends from net (.09) (.18) (.19) (.22) (.26) (.31)
investment income
Distributions from -- (.66) (.61) (.30) (.18) (.53)
realized gains
Excess distribution of -- -- (.01) -- -- --
realized gain
Total distributions (.09) (.84) (.81) (.52) (.44) (.84)
Net asset value, $9.36 $9.17 $9.46 $8.90 $8.22 $7.92
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period $1,180 $1,031 $758 $497 $370 $311
(in millions)
Ratio of expenses to 1.58%*** 1.56% 1.63% 1.66% 1.66% 1.61%
average daily net assets
Ratio of net income to 1.89%*** 1.93% 2.15% 2.56% 3.41% 3.61%
average daily net assets
Portfolio turnover rate 43% 70% 48% 72% 65% 67%
(excluding short-term
securities)
Total return+ 3.1%++ 5.5% 16.0% 15.0% 10.1% 9.9%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Sept. 30, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect contingent deferred sales charge.
++For the fiscal period ended Sept. 30, 1994, the annualized total return is 6.2%.
<PAGE>
PAGE
Income Fund
Financial highlights
Fiscal period ended March 31,
Per share income and capital changes*
<CAPTION>
1994** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $6.23 $6.43 $5.96 $5.65 $5.44 $5.58
beginning of period
Income from investment operations:
Net investment income .20 .42 .45 .44 .44 .42
Net gains (losses) (.34) (.13) .47 .32 .20 (.14)
(both realized
and unrealized)
Total from investment (.14) .29 .92 .76 .64 .28
operations
Less distributions:
Dividends from net (.20) (.42) (.45) (.45) (.43) (.42)
investment income
Distributions from -- (.07) -- -- -- --
realized gains
Total distributions (.20) (.49) (.45) (.45) (.43) (.42)
Net asset value, $5.89 $6.23 $6.43 $5.96 $5.65 $5.44
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period $680 $751 $580 $367 $258 $231
(in millions)
Ratio of expenses to 1.64%*** 1.60% 1.65% 1.69% 1.67% 1.72%
average daily net assets
Ratio of net income to 6.42%*** 6.38% 7.31% 7.65% 8.11% 7.43%
average daily net assets
Portfolio turnover rate 35% 61% 36% 82% 62% 83%
(excluding short-term
securities)
Total return+ (2.1%)++ 4.3% 15.9% 13.7% 12.2% 4.9%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Sept. 30, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect contingent deferred sales charge.
++For the fiscal period ended Sept. 30, 1994, the annualized total return is (4.2%).
<PAGE>
PAGE
Short-Term Income Fund
Financial highlights
Fiscal period ended March 31,
Per share income and capital changes*
<CAPTION>
1994** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $1.00 $1.03 $1.02 $1.01 $1.00 $1.00
beginning of period
Income from investment operations:
Net investment income .02 .04 .05 .06 .07 .08
Net gains (losses) (.02) (.03) .01 .01 .01 --
(both realized
and unrealized)
Total from investment -- .01 .06 .07 .08 .08
operations
Less distributions:
Dividends from net (.02) (.04) (.05) (.06) (.07) (.08)
investment income
Net asset value, $ .98 $1.00 $1.03 $1.02 $1.01 $1.00
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period $212 $191 $177 $155 $148 $125
(in millions)
Ratio of expenses to 1.71%*** 1.73% 1.76% 1.75% 1.67% 1.50%****
average daily net assets
Ratio of net income to 3.58%*** 4.12% 4.56% 6.17% 6.85% 7.70%
average daily net assets
Portfolio turnover rate 37% 58% 37% 35% 30% 49%
(excluding short-term
securities)
Total return+ 0.2%++ 1.3% 6.1% 7.0% 8.3% 7.6%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Sept. 30, 1994 (Unaudited).
***Adjusted to an annual basis.
****During the period from April 1, 1989 to Sept. 30, 1989, IDS voluntarily waived portions of its
advisory, distribution and transfer agency fees. Had IDS not done so, the ratio of expenses to
average net assets would have been 1.74%.
+Total return does not reflect contingent deferred sales charge.
++For the fiscal period ended Sept. 30, 1994, the annualized total return is 0.3%.
<PAGE>
PAGE
Worldwide Growth Fund
Financial highlights
Fiscal period ended March 31,
Per share income and capital changes*
<CAPTION>
1994** 1994 1993 1992 1991*** 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $5.37 $4.51 $4.28 $4.42 $4.51 $4.33
beginning of period
Income from investment operations:
Net investment (.01) (.01) (.03) -- (.01) (.02)
income (loss)
Net gains (losses) .31 .87 .26 (.12) (.08) .21
(both realized
and unrealized)
Total from investment .30 .86 .23 (.12) (.09) .19
operations
Less distributions:
Dividends from net -- -- -- (.02) -- (.01)
investment income
Net asset value, $5.67 $5.37 $4.51 $4.28 $4.42 $4.51
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991*** 1990
Net assets, end of period $301 $215 $51 $39 $41 $45
(in millions)
Ratio of expenses to 2.21%**** 2.45% 2.91% 2.75% 2.47% 2.42%
average daily net assets
Ratio of net income (loss) .23%**** (.32%) (.84%) (.02%) (.20%) (.31%)
to average daily net assets
Portfolio turnover rate 25% 58% 106% 69% 91% 69%
(excluding short-term
securities)
Total return+ 5.6%++ 19.1% 5.2% (2.5%) (2.2%) 4.3%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Sept. 30, 1994 (Unaudited).
***On Oct. 10, 1990, a change was implemented in the fund's investment policies to permit
investments in Europe and other parts of the world. Also, the fund's name was changed
from Pan Pacific Growth to Worldwide Growth Fund.
****Adjusted to an annual basis.
+Total return does not reflect contingent deferred sales charge.
++For the fiscal period ended Sept. 30, 1994, the annualized total return is 11.5%.
</TABLE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Aggressive Equity Fund (Percentages represent value of
Sept. 30, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (84.2%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Airlines (0.5%)
Southwest Airlines 171,000 $ 3,847,500
_____________________________________________________________________________________________________________________________
Banks and savings & loans (5.7%)
First Chicago 151,500 6,950,062
First Fidelity Bancorp 122,700 5,153,400
First Tennessee Natl 76,800 3,456,000
MBNA 182,500 4,220,313
Mercantile Bancorp 144,000 5,310,000
Meridian Bancorp 104,900 3,015,875
PNC Financial 200,000 5,175,000
Shawmut Natl 140,500 2,915,375
Signet Banking 115,600 3,988,200
_____________
Total 40,184,225
_____________________________________________________________________________________________________________________________
Building materials (0.6%)
Clayton Homes 227,900 (b) 4,330,100
_____________________________________________________________________________________________________________________________
Chemicals (1.3%)
Lyondell Petrochem 58,400 1,817,700
Methanex 213,300 (b) 3,839,400
Morton Intl 114,900 3,159,750
_____________
Total 8,816,850
_____________________________________________________________________________________________________________________________
Communications equipment (2.9%)
ADC Telecom 75,900 (b) 3,045,488
Andrew 95,000 (b) 4,761,875
DSC Communications 62,300 (b) 1,775,550
ECI Telecom 235,600 4,152,450
Northern Telecom 97,700 3,395,075
Scientific-Atlanta 80,900 3,306,787
____________
Total 20,437,225
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE
Computers & office equipment (20.2%)
Adobe Systems 215,300 6,997,250
Amer Power Conversion 192,600 (b) 3,864,037
AutoDesk 68,100 4,256,250
Business Objects 6,500 (b) 185,250
Cisco Systems 503,900 (b) 13,794,263
COMPAQ Computer 411,800 (b) 13,434,975
Compuware 120,000 (b) 5,647,500
Danka Business Systems 253,600 4,691,600
First Financial Management 75,000 4,312,500
Informix 189,000 5,244,750
Intuit 44,600 (b) 1,951,250
Komag 152,300 (b) 4,035,950
Microsoft 70,000 (b) 3,928,750
Oracle Systems 374,800 (b) 16,116,400
Parametric Technology 518,100 (b) 17,226,825
Powersoft 174,400 (b) 9,395,800
Silicon Graphics 150,000 (b) 3,862,500
Solectron 62,800 (b) 1,656,350
Sybase 107,000 (b) 4,908,625
Synopsys 220,300 (b) 9,968,575
Tech Data 192,600 (b) 3,707,550
3Com 63,200 (b) 2,362,100
____________
Total 141,549,050
_____________________________________________________________________________________________________________________________
Electronics (8.5%)
Applied Material 224,200 (b) 10,481,350
Cypress Semiconductor 93,900 (b) 1,631,513
Intel 364,300 22,404,450
Linear Technology 165,000 7,311,562
LSI Logic 46,800 (b) 1,749,150
Sensormatic Electric 225,000 7,706,250
Vishay Intertechnology 180,000 8,100,000
_____________
Total 59,384,275
_____________________________________________________________________________________________________________________________
Energy (0.4%)
Enron Oil & Gas 170,000 3,463,750
_____________________________________________________________________________________________________________________________
Financial services (3.1%)
ADVANTA 110,000 3,217,500
Dean Witter 130,500 4,910,063
First USA 74,500 2,616,812
Household Intl 192,900 6,896,175
Paychex 106,200 4,009,050
____________
Total 21,649,600
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Health care (8.1%)
Amgen 97,500 (b) 5,191,875
Biogen 59,200 (b) 3,226,400
Cardinal 173,400 7,261,125
Chiron 51,500 (b) 3,424,750
Forest Labs 137,400 (b) 6,766,950
Genentech 140,200 (b) 7,360,500
IDEXX Laboratories 167,900 (b) 4,953,050
Medtronics 117,200 6,196,950
Pfizer 154,700 10,693,637
Stryker 57,500 1,998,125
____________
Total 57,073,362
_____________________________________________________________________________________________________________________________
Health care services (4.4%)
Beverly Enterprises 112,000 (b) 1,722,000
HEALTHSOUTH Rehab 93,500 (b) 3,669,875
Mid Atlantic Medical Services 176,900 (b) 4,975,313
Oxford Health Plans 47,600 (b) 3,665,200
United Healthcare 167,600 8,882,800
U.S. HealthCare 165,700 7,715,406
___________
Total 30,630,594
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.7%)
Giddings & Lewis 101,400 1,806,188
Stewart & Stevenson 91,200 3,465,600
___________
Total 5,271,788
_____________________________________________________________________________________________________________________________
Industrial transportation (0.6%)
Amer Freightways 66,000 (b) 1,633,500
Heartland Express 31,800 938,100
TNT Freightways 55,600 1,431,700
____________
Total 4,003,300
_____________________________________________________________________________________________________________________________
Insurance (0.8%)
Coventry 100,000 (b) 2,350,000
Equitable of Iowa 88,600 3,189,600
____________
Total 5,539,600
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (1.8%)
Hasbro 159,500 4,705,250
Intl Game Technology 224,600 4,632,375
Marvel Entertainment Group 128,100 (b) 2,225,737
Savoy Pictures Entertainment 112,000 (b) 1,288,000
____________
Total 12,851,362
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Media (2.2%)
Comcast 170,000 2,592,500
Comcast Cl A 85,000 1,301,563
Multimedia 114,200 (b) 3,433,137
Tele-Communications Cl A 180,000 (b) 3,993,750
Viacom 100,000 (b) 3,975,000
____________
Total 15,295,950
_____________________________________________________________________________________________________________________________
Metals (0.5%)
Nucor 53,800 3,745,825
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.7%)
Alco Standard 54,500 3,385,812
Lancaster Colony 44,400 1,554,000
____________
Total 4,939,812
_____________________________________________________________________________________________________________________________
Restaurants & lodging (2.6%)
Brinker Intl 370,000 (b) 8,880,000
Buffets 160,000 (b) 2,520,000
Hospitality Franchise System 58,300 (b) 1,829,162
Starbucks 210,600 (b) 4,856,963
____________
Total 18,086,125
_____________________________________________________________________________________________________________________________
Retail (10.7%)
Ann Taylor Stores 251,900 (b) 9,068,400
Barnes & Noble 132,900 (b) 3,555,075
Bed Bath & Beyond 142,500 (b) 3,669,375
Best Buy 130,000 (b) 5,086,250
Corporate Express 29,200 (b) 605,900
CUC Intl 183,700 (b) 6,062,100
Home Depot 296,400 12,448,800
Kohls 142,900 (b) 6,930,650
Meyer (Fred) 107,700 (b) 3,540,638
Nordstrom 90,400 3,616,000
Office Depot 281,250 (b) 7,312,500
Pep Boys-Manny Moe & Jack 158,300 5,500,925
Wal-Mart Stores 156,800 3,665,200
Viking Office Products 137,200 (b) 4,150,300
_____________
Total 75,212,113
_____________________________________________________________________________________________________________________________
Utilities-gas (0.6%)
Enron 140,000 4,235,000
_____________________________________________________________________________________________________________________________
Utilities-telephone (2.1%)
AirTouch Communications 190,600 (b) 5,455,925
ALC Communications 155,000 (b) 5,076,250
AT & T 75,000 4,050,000
____________
Total 14,582,175
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Foreign (5.2%)(c)
Cifra ADR Series B 1,676,500 4,975,517
Ericsson LM Cl B ADR 32,700 1,757,625
Grupo Sidek ADR 195,000 (b) 3,900,000
Grupo Televisa 35,000 (d) 2,025,625
Hutchison Whampoa 1,200,000 5,667,600
Industrie Natuzzi 60,100 1,870,612
Renaissance Energy 162,100 (b) 3,491,067
Renaissance Energy 56,700 (b,d) 1,221,120
Tarragon Oil & Gas 170,000 (b) 2,187,203
Telefonos de Mexico ADR 58,600 3,662,500
Television Broadcast 1,200,000 5,574,000
_____________
Total 36,332,869
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $488,521,177) $591,462,450
_____________________________________________________________________________________________________________________________
Preferred stocks & other (2.4%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Gensia Pharmaceuticals
$3.75 Cv 60,000 (d) $ 1,335,000
Jan Bell
Warrants 2,473 (e) --
Nokia 102,900 (c) 6,019,650
SAP 17,750 9,046,252
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $10,722,561) $ 16,400,902
_____________________________________________________________________________________________________________________________
Bond (0.5%)
_____________________________________________________________________________________________________________________________
Issuer and Principal Value(a)
coupon rate amount
____________________________________________________________________________________________________________________________
Ciba Geigy/Alza
6.25% Cv 2016 $4,000,000 (d) $ 3,700,000
_____________________________________________________________________________________________________________________________
Total bond
(Cost: $4,160,991) $ 3,700,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (15.0%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.4%)
Student Loan Marketing Assn
10-17-94 4.74% $2,800,000 $ 2,794,126
_____________________________________________________________________________________________________________________________
Commercial paper (14.6%)
Amgen
10-21-94 4.94 6,700,000 6,681,687
Aon
10-27-94 4.92 800,000 797,169
Cafco
10-20-94 4.77 2,700,000 2,693,245
Cargill Financial Markets
10-28-94 4.89 5,000,000 (f) 4,981,738
Ciesco LP
10-05-94 4.77 3,800,000 3,797,994
Colgate Palmolive
10-06-94 4.76 4,600,000 (f) 4,596,972
Eiger Capital
10-06-94 4.77 2,803,000 (f) 2,801,151
Gateway Fuel
10-13-94 4.77 4,700,000 4,692,558
General Mills
10-25-94 4.79 4,200,000 4,186,672
Lilly (Eli)
10-12-94 4.85 6,000,000 5,991,127
Merrill Lynch
10-11-94 4.78 3,000,000 2,996,042
10-25-94 4.80 2,700,000 2,691,414
Motorola
10-19-94 4.78 2,700,000 2,693,574
10-20-94 4.77 5,000,000 4,987,465
Norfolk Southern
10-14-94 4.77 2,900,000 (f) 2,895,026
Paribas Finance
10-06-94 4.77 5,000,000 4,996,701
Pfizer
10-27-94 4.84 3,500,000 3,487,816
<PAGE>
PAGE
Quaker Oats
10-25-94 4.94 5,100,000 5,083,272
St. Paul Companies
10-11-94 4.77 6,400,000 (f) 6,391,555
10-27-94 4.79 2,100,000 (f) 2,092,766
Sandoz
11-01-94 4.97 700,000 697,016
Southwestern Bell Capital
10-06-94 4.75 800,000 (f) 799,474
11-14-94 4.85 3,800,000 (f) 3,776,298
U.S. WEST Communications
11-04-94 4.79 5,900,000 5,873,532
Wal-Mart
10-03-94 4.85 11,700,000 11,696,847
___________
Total 102,379,111
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $105,174,600) $105,173,237
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $608,579,329)(g) $716,736,589
_____________________________________________________________________________________________________________________________
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) Represents a security sold under Rule 144A, which is exempt from registration under the
Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines
established by the board of directors.
(e) Presently negligible market value.
(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 Sept. 30, 1994, the cost of securities for federal income tax purposes was
approximately $608,579,000 and the approximate aggregate gross unrealized appreciation and depreciation
based on that cost was:
<CAPTION>
<S> <C>
Unrealized appreciation $125,563,000
Unrealized depreciation (17,405,000)
___________________________________________________________________________________________
Net unrealized appreciation $108,158,000
___________________________________________________________________________________________
</TABLE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
Sept. 30, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (79.2%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (2.1%)
Raytheon 200,000 $ 12,825,000
United Technologies 200,000 12,525,000
____________
Total 25,350,000
_____________________________________________________________________________________________________________________________
Automotive & related (2.9%)
Chrysler 250,000 11,218,750
Ford Motor 400,000 (b) 11,100,000
General Motors 250,000 11,718,750
____________
Total 34,037,500
_____________________________________________________________________________________________________________________________
Banks and savings & loans (7.7%)
Ahmanson (HF) 540,000 11,272,500
BankAmerica 275,000 12,134,375
Bankers Trust 175,000 11,681,250
BB&T Financial 250,000 7,250,000
First American 170,000 5,610,000
First Chicago 120,000 5,505,000
Keycorp 330,000 10,065,000
Mercantile Bancorp 225,000 8,296,875
NationsBank 200,000 9,800,000
PNC Bank 362,000 9,366,750
____________
Total 90,981,750
_____________________________________________________________________________________________________________________________
Beverages & tobacco (3.0%)
Amer Brands 336,000 12,180,000
PepsiCo 350,000 11,593,750
UST 400,000 11,450,000
____________
Total 35,223,750
_____________________________________________________________________________________________________________________________
Building materials (2.7%)
Kaufman & Broad Home 687,000 9,360,375
Masco 500,000 12,062,500
Potlatch 266,000 10,972,500
____________
Total 32,395,375
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
Chemicals (3.5%)
ARCO Chemical 212,500 10,518,750
Dow Chemical 175,000 13,693,750
Ecolab 320,000 6,960,000
Ethyl 846,000 9,623,250
___________
Total 40,795,750
_____________________________________________________________________________________________________________________________
Computers and office equipment (0.8%)
Pitney Bowes 280,000 9,940,000
_____________________________________________________________________________________________________________________________
Energy (3.2%)
Amoco 220,000 13,035,000
Exxon 215,000 12,389,375
Mobil 160,000 12,660,000
____________
Total 38,084,375
_____________________________________________________________________________________________________________________________
Financial services (4.3%)
ADVANTA Cl B 48,400 1,415,700
Beneficial 200,000 8,150,000
Federal Natl Mtge 131,000 10,316,250
Household Intl 320,000 11,440,000
MBNA 450,000 10,406,250
Student Loan Marketing Assn 275,000 8,971,875
____________
Total 50,700,075
_____________________________________________________________________________________________________________________________
Food (0.8%)
Hormel (George A) 425,000 9,562,500
_____________________________________________________________________________________________________________________________
Furniture & appliances (1.2%)
Black & Decker 590,000 12,906,250
Maytag 100,500 1,620,562
____________
Total 14,526,812
_____________________________________________________________________________________________________________________________
Health care (5.6%)
Beckman Instruments 427,100 12,599,450
Johnson & Johnson 297,000 15,332,625
Merck 364,000 12,922,000
Pfizer 173,000 11,958,625
SmithKline Beecham 415,000 12,813,125
____________
Total 65,625,825
_____________________________________________________________________________________________________________________________
Household products (0.3%)
Scotts Cl A 260,000 (c) 4,030,000
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.5%)
Deere 80,100 5,496,863
General Signal 360,000 12,645,000
____________
Total 18,141,863
_____________________________________________________________________________________________________________________________
Industrial transportation (3.1%)
Norfolk Southern 200,000 12,450,000
Santa Fe Pacific 525,000 11,878,125
Union Pacific 225,000 12,065,625
____________
Total 36,393,750
_____________________________________________________________________________________________________________________________
Insurance (4.9%)
Amer General 400,000 10,850,000
Aon 325,000 10,846,875
Enhance Financial Services 300,000 5,737,500
St. Paul Companies 280,000 11,375,000
Tempest Reinsurance 77,000 (c) 7,710,010
Travelers 329,269 10,824,718
____________
Total 57,344,103
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.9%)
Caesars World 250,000 (c) 10,843,750
_____________________________________________________________________________________________________________________________
Metals (2.5%)
Freeport-McMoRan 300,000 5,812,500
Freeport-McMoRan Copper & Gold 407,500 10,187,500
Reynolds Metals 237,000 13,420,125
____________
Total 29,420,125
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (4.0%)
Emerson Electric 185,000 11,030,625
General Electric 275,000 13,234,375
ITT 150,000 12,506,250
Textron 200,000 10,175,000
____________
Total 46,946,250
_____________________________________________________________________________________________________________________________
Paper & packaging (3.5%)
Intl Paper 159,000 12,481,500
Longview Fibre 232,000 4,234,000
Rayonier 389,500 12,561,375
Union Camp 234,000 11,495,250
____________
Total 40,772,125
_____________________________________________________________________________________________________________________________
Retail (6.0%)
Broadway Stores 600,000 (b,c) 6,675,000
Dayton Hudson 125,000 (b) 9,562,500
May Dept Stores 275,000 10,828,125
Melville 275,000 9,796,875
Meyer (Fred) 335,000 (c) 11,013,125
Rite Aid 500,000 10,375,000
Sears Roebuck 250,000 12,000,000
____________
Total 70,250,625
_____________________________________________________________________________________________________________________________
Textiles & apparel (0.7%)
Burlington Inds 787,500 (c) 8,268,750
_____________________________________________________________________________________________________________________________
Utilities - gas (2.0%)
Enron 360,000 10,890,000
Tenneco 275,000 12,134,375
____________
Total 23,024,375
_____________________________________________________________________________________________________________________________
Utilities - telephone (1.1%)
Comsat 500,000 12,812,500
_____________________________________________________________________________________________________________________________
Foreign (10.9%)(d)
Barlow Rand 185,900 1,253,152
Brierley Investments 7,843,200 5,945,146
British Gas 2,600,000 12,217,400
DeBeers Cons Mines ADR 524,000 12,379,500
Deutsche Bank 24,500 (c) 10,715,247
Grupo Tribasa 130,000 (c) 4,777,500
Hanson ADR 610,000 11,056,250
Hollandsche Beton Group 28,700 (c) 4,586,719
Iberdrola 950,000 6,008,750
Imperial Chemical Inds 661,000 8,653,151
Repsol (SA) ADR 342,000 10,473,750
Royal Dutch Petroleum 129,000 13,851,375
Sceptre Resources 400,000 (c) 3,281,760
Tolmex 325,000 4,927,877
Volker Stevin Certificates 39,500 (c) 1,986,890
Woolworth 2,800,000 5,843,600
YPF 420,000 10,605,000
____________
Total 128,563,067
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $899,669,736) $ 934,034,995
_____________________________________________________________________________________________________________________________
Bonds (1.1%)
_____________________________________________________________________________________________________________________________
Issuer and Principal
coupon rate amount Value(a)
_____________________________________________________________________________________________________________________________
Domestic (0.4%)
Broadway Stores
6.25% Cv 2000 $1,000,000 $ 1,082,500
Delta Air Lines
3.23% Cv 2003 4,000,000 2,720,000
USF & G
Zero Coupon
4.50% Cv 2009 1,650,000 (g) 787,875
______________
Total 4,590,375
_____________________________________________________________________________________________________________________________
Foreign (0.7%) (d)
Amcor
(Australian Dollar)
6.50% Cv 2003 160,500,000 1,104,935
Escom
(South African Rand)
11% 2008 42,475,000 6,881,799
____________
Total 7,986,734
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $14,432,928) $ 12,577,109
_____________________________________________________________________________________________________________________________
<CAPTION>
Preferred stocks (1.9%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
AMR
$3 Cv 100,000 (f) $ 4,075,000
Delta Airlines
$3.50 Cm Cv 55,000 2,475,000
SunAmerica
$2.78 Cv 174,600 (b) 6,962,175
UAL
$6.25 Cv 40,000 (f) 3,365,000
Unisys
$3.75 Cm Cv 165,200 6,029,800
_____________________________________________________________________________________________________________________________
Total preferred stocks
(Cost: $27,181,658) $ 22,906,975
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (16.8%)
_____________________________________________________________________________________________________________________________
Annualized Amount
yield on payable at
date of maturity
Issuer purchase Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.6%)
Federal Home Loan Mtge
Corp Disc Nts
10-04-94 4.71% $ 4,000,000 $ 3,998,437
11-02-94 4.82 3,500,000 3,485,067
____________
Total 7,483,504
_____________________________________________________________________________________________________________________________
Commercial paper (15.8%)
Amgen
10-07-94 4.79 16,400,000 16,386,962
AT&T Capital
10-18-94 4.78 6,100,000 6,086,289
10-27-94 4.79 6,600,000 6,577,263
Aon
10-13-94 4.79 4,200,000 4,193,322
10-21-94 4.78 3,800,000 3,789,951
Becton Dickinson
10-17-94 4.86 3,000,000 (e) 2,993,573
Beneficial
11-03-94 4.95 4,100,000 4,081,509
CIT Group
11-04-94 4.91 4,000,000 3,981,564
Cargill Financial Markets
10-20-94 4.91 7,000,000 (e) 6,981,934
Chevron Oil Finance
10-14-94 4.77 4,000,000 3,993,139
Chevron Transport
10-13-94 4.78 1,700,000 (e) 1,697,303
Ciesco LP
10-19-94 4.82 6,400,000 6,384,124
Commercial Credit
11-07-94 4.90 2,000,000 1,989,989
Commerzbank
11-01-94 4.89 3,200,000 3,186,580
Consolidated Natl Gas
11-14-94 4.98 2,935,000 2,917,243
Consolidated Rail
10-28-94 4.82 1,800,000 (e) 1,793,547
Fleet Funding
10-12-94 4.78 4,558,000 (e) 4,551,385
General Mills
10-14-94 4.90 4,500,000 4,492,054
10-25-94 4.79 9,800,000 9,768,901
Hewlett-Packard
10-28-94 4.92 6,000,000 5,977,950
Household Finance
11-02-94 4.89 3,700,000 3,683,983
May Dept Stores
10-13-94 4.79 4,900,000 4,892,209
Mobil Australia Finance
(Delaware)
10-17-94 4.80 2,200,000 (e) 2,195,326
10-25-94 4.94 6,800,000 (e) 6,777,696
Natl Australia Funding
(Delaware)
10-07-94 4.77 600,000 599,525
11-01-94 4.90 4,400,000 4,381,510
Nestle Capital
10-03-94 4.74 9,900,000 9,897,404
11-01-94 4.90 5,500,000 5,476,888
Pitney Bowes Credit
10-18-94 4.87 6,300,000 6,285,571
St. Paul Companies
11-07-94 4.88 2,200,000 (e) 2,189,034
SBT Funding
10-19-94 4.82 1,400,000 (e) 1,396,640
Smithkline
10-03-94 4.54 5,100,000 5,098,531
Southwestern Bell Capital
10-26-94 4.78 4,500,000 (e) 4,485,156
11-14-94 4.85 4,000,000 (e) 3,975,051
Toyota Motor Credit
10-21-94 4.79 4,000,000 3,989,422
USAA Capital
10-12-94 4.77 5,300,000 5,292,308
US WEST Communications
10-05-94 4.54 2,300,000 2,298,745
10-24-94 4.78 6,000,000 5,981,792
10-28-94 4.87 4,900,000 4,882,176
____________
Total 185,603,549
_____________________________________________________________________________________________________________________________
Letter of credit (0.4%)
First Chicago-
Commed Fuel
11-02-94 4.92 5,000,000 4,978,222
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $198,067,604) $ 198,065,275
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,139,351,926)(h) $1,167,584,354
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Security is partially or fully on loan. See Note 6 to the financial statements.
(c) Presently non-income producing.
(d) Foreign security values are stated in U.S. dollars. For debt securities, principal
amounts are denominated in the currency indicated.
(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". This
security has been determined to be liquid under guidelines established by the
board of directors.
(f) Represents a security sold under Rule 144A which is exempt from registration under
the Securities Act of 1933, as amended. This security has been determined to be
liquid under guidelines established by the board of directors.
(g) For zero coupon bonds, the interest rate disclosed represents the annualized
effective yield on the date of acquisition.
(h) At Sept. 30, 1994, the cost of securities for federal income tax purposes was
approximately $1,139,352,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
<CAPTION>
<S> <C>
Unrealized appreciation $ 70,211,000
Unrealized depreciation (41,979,000)
____________________________________________________________________________________
Net unrealized appreciation $ 28,232,000
____________________________________________________________________________________
</TABLE>
PAGE
<TABLE>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
Sept. 30, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
<CAPTION>
Bonds (87.6%)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
U.S. government obligations (11.6%)
U.S. Treasury 3.875% 1995 $34,500,000 $ 34,236,417
4.25 1995 10,000,000 9,798,599
5.875 1995 15,000,000 (b) 15,020,848
6.375 1999 2,000,000 (c) 1,941,960
6.75 1997 10,000,000 (b) 9,986,699
Resolution Refunding Corp
Zero Coupon 8.68 1999 6,500,000 (d) 4,687,994
8.70 1999 5,000,000 (d) 3,543,400
____________
Total 79,215,917
_____________________________________________________________________________________________________________________________
Mortgage-backed securities (14.8%)
Federal Home Loan Bank Notes 8.00 2014 5,000,000 4,881,250
Federal Home Loan Mtge Corp 6.50 1994-07 1,316,174 1,178,384
8.00 1994-17 1,422,642 1,383,520
Collateralized Mtge Obligation 7.00 2022 12,000,000 10,386,600
8.50 2022 7,000,000 6,907,740
Inverse Floater Collateralized Mtge Obligation 5.176 1994-23 5,000,000 (f) 1,835,937
Federal Natl Mtge Assn 6.00 1994-24 20,127,881 17,341,427
6.50 1994-23 4,872,992 4,347,622
6.50 1994-24 11,744,482 10,478,280
8.50 1994-23 13,960,957 13,995,860
8.50 2024 1,000,000 (e) 1,000,625
8.50 1994-24 9,649,471 9,673,595
9.00 2024 10,000,000 10,275,000
Collateralized Mtge Obligation Series Z 6.00 2024 5,177,647 (g) 3,065,683
Inverse Floater Collateralized Mtge Obligation 11.338 2021 3,000,000 (f) 2,786,250
Govt Natl Mtge Assn 9.50 2020 554,764 583,542
Prudential Bache
Collateralized Mtge Obligation Trust 7.965 2019 871,693 820,943
____________
Total 100,942,258
_____________________________________________________________________________________________________________________________
Financial (10.2%)
Banks and savings & loans (3.9%)
BankAmerica
Sub Nts 7.50 2002 3,000,000 2,865,000
Barclays NA Capital 9.75 2021 3,600,000 3,865,500
Citicorp
Sub Secured Nts 8.00 2003 4,000,000 3,930,000
See accompanying notes to investments in securities.
<PAGE>
Commercial Federal
Sub Nts 10.25 1999 4,000,000 4,070,000
CoreStates Capital
Gtd Sub Nts 9.375 2003 4,300,000 4,595,625
Fleet Norstar Finance
Sub Nts 9.00 2001 4,000,000 4,175,000
Society
Sub Nts 8.125 2002 3,000,000 2,988,750
____________
Total 26,489,875
_____________________________________________________________________________________________________________________________
Financial services (3.4%)
Camden Property Trust 7.33 2001 1,000,000 950,000
Corporate Property Investors 7.05 2003 2,000,000 (h) 1,817,500
7.18 2013 2,000,000 (h) 1,782,500
Developers Diversified Realty 7.00 1999 1,000,000 987,500
First Union
Sr Nts 8.875 2003 3,000,000 2,550,000
General Electric Capital
Reset Nt 8.65 1996 1,285,000 (i) 1,321,944
Goldman Sachs Group LP 7.125 2003 4,000,000 (h) 3,640,000
Kearny (RE) LP 7.70 2001 1,750,000 1,736,055
Liberty Property Trust
Cv 8.00 2001 500,000 496,250
Malan REIT
Cv 9.50 2004 1,000,000 957,500
Omega Healthcare Investors 7.11 2000 2,793,366 (h) 2,658,062
Property Trust Amer 7.50 2014 5,000,000 4,406,250
____________
Total 23,303,561
_______________________________________________________________________________________________________________________________
Insurance (2.9%)
Berkley (WR) 8.70 2022 3,000,000 2,951,250
General Amer Life 7.625 2024 3,000,000 (h) 2,591,250
Leucadia Natl
Cv 5.25 2003 2,600,000 2,236,000
Sr Nt 7.75 2013 4,000,000 3,460,000
NAC Re
Cv Sub Deb 5.25 2002 1,000,000 (h) 850,000
<PAGE>
Nationwide Mutual 7.50 2024 4,000,000 (h) 3,350,000
New England Mutual
Credit Sensitive Nts 7.875 2024 5,000,000 (h) 4,125,000
____________
Total 19,563,500
_____________________________________________________________________________________________________________________________
Industrial (27.2%)
Aerospace & defense (0.1%)
Allison Engine Acquisition
Sr Sub Nts 10.00 2003 1,000,000 957,500
_____________________________________________________________________________________________________________________________
Airlines (0.5%)
AMR 9.75 2000 3,000,000 3,131,250
_____________________________________________________________________________________________________________________________
Automotive & related (3.6%)
Auburn Hills Trust
Gtd Exchangeable Certs 12.375 2020 5,000,000 6,643,750
Chrysler Financial 13.25 1999 290,000 356,700
Exide 10.75 2002 2,900,000 3,030,500
General Motors 9.40 2021 4,000,000 4,220,000
General Motors Acceptance 6.375 1996 10,000,000 9,912,500
____________
Total 24,163,450
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.3%)
RJR Nabisco
SF Deb 8.375 2017 2,058,000 1,841,910
_____________________________________________________________________________________________________________________________
Building materials (1.1%)
Baldwin 10.375 2003 3,250,000 2,762,500
Owens-Corning Fiberglas 9.375 2012 2,000,000 2,012,500
Toll
Cv 4.75 2004 750,000 575,625
USG
Sr Nts 10.25 2002 2,000,000 2,040,000
____________
Total 7,390,625
_____________________________________________________________________________________________________________________________
<PAGE>
Chemicals (1.8%)
Goodrich (BF) 9.625 2001 3,000,000 3,097,500
Praxair 8.70 2022 3,000,000 2,943,750
Sifto Canada
Sr Sub Nt 8.50 2000 3,000,000 2,797,500
Uniroyal Chemical
Sr Sub Nts 11.00 2003 3,000,000 3,105,000
____________
Total 11,943,750
_____________________________________________________________________________________________________________________________
Communications equipment (0.2%)
NEXTEL Communications
Zero Coupon Sr Nt 9.75 1999 3,000,000 (d) 1,477,500
_____________________________________________________________________________________________________________________________
Computers & office equipment (1.5%)
Anacomp 12.25 1997 2,700,000 (j) 2,727,000
Conner Peripheral
Cv 6.50 2002 2,000,000 1,582,500
Convex Computer
Cv 6.00 2012 2,000,000 1,305,000
Data General
SF Deb 8.375 2002 2,000,000 1,765,000
SCI Television 7.50 1998 3,000,000 2,932,500
____________
Total 10,312,000
_____________________________________________________________________________________________________________________________
Electronics (0.3%)
Berg Electronics 11.375 2003 2,000,000 2,035,000
_____________________________________________________________________________________________________________________________
Energy (1.9%)
Cross Timbers Oil
Cv Sub Nts 5.25 2003 500,000 415,000
PDV Amer 7.875 2003 5,000,000 4,187,500
Texaco Capital
Gtd Deb 7.50 2043 3,000,000 2,606,250
USX 9.125 2013 3,000,000 2,951,250
9.375 2022 3,000,000 2,981,250
____________
Total 13,141,250
_____________________________________________________________________________________________________________________________
Energy equipment & services (0.3%)
McDermott 9.375 2002 1,900,000 2,006,875
_____________________________________________________________________________________________________________________________
Health care (--%)
Alza
Zero Coupon Cv 5.25 1999 450,000 (d) 158,625
_____________________________________________________________________________________________________________________________
<PAGE>
Health care services (1.7%)
Amer Medical Intl
SF Deb 11.25 2015 3,000,000 3,217,500
Charter Medical Intl
Sr Sub 11.25 2004 2,500,000 (h) 2,587,500
Foundation Health
Sr Nts 7.75 2003 2,750,000 2,578,125
Hillhaven
Sr Nts 10.125 2001 3,000,000 3,030,000
____________
Total 11,413,125
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.2%)
Mascotech
Cv 4.50 2003 1,500,000 1,027,500
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (1.6%)
Bally's Grand
1st Mtge 10.375 2003 1,500,000 1,323,750
Bell Sports
Cv 4.25 2000 1,000,000 726,250
Cinemark (USA)
Sr Nts 12.00 2002 2,000,000 2,150,000
GB Property
1st Mtge 10.875 2004 3,000,000 2,265,000
Showboat
1st Mtge 9.25 2008 3,000,000 2,535,000
Trump Taj Mahal Funding
Pay-in-Kind -- 1999 3,048,804 2,027,455
____________
Total 11,027,455
_____________________________________________________________________________________________________________________________
Media (3.7%)
Adelphia Communications
Sr Deb 11.875 2004 3,000,000 2,940,000
Cablevision Systems
Sr Sub Deb 9.875 2013 3,000,000 2,850,000
Comcast
Cv 1.125 2007 1,500,000 615,000
Continental Cablevision
Sr Deb 8.875 2005 2,500,000 2,250,000
News Corp 10.15 2010 3,925,455 (h) 4,107,439
Robin Media Group 11.125 1997 2,000,000 1,937,500
<PAGE>
Rogers Communications
Sr Deb 10.875 2004 2,000,000 2,070,000
Zero Coupon Cv 5.50 1998 6,000,000 (d) 2,160,000
Time Warner
Zero Coupon Cv 6.59 2012 1,900,000 (d) 584,250
Turner Broadcasting System
Sr Nts 8.375 2013 6,900,000 5,649,375
____________
Total 25,163,564
_____________________________________________________________________________________________________________________________
Metals (0.3%)
A.K. Steel
Sr Nt 10.75 2004 2,000,000 2,030,000
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.0%)
Fairchild Inds 12.25 1999 3,000,000 2,940,000
Talley Inds
Zero Coupon Sr Disc Deb 12.25 1998 2,000,000 (d) 1,082,500
Talley Mfg & Technology
Sr Nts 10.75 2003 3,000,000 2,752,500
____________
Total 6,775,000
_____________________________________________________________________________________________________________________________
Paper & packaging (2.2%)
Container Corp Amer
Sr Nts 9.75 2003 2,000,000 1,942,500
Sr Nts 10.75 2002 1,750,000 1,802,500
Federal Paper Board 10.00 2011 1,900,000 2,059,125
Fort Howard
Sr Sub Nts 9.00 2006 2,000,000 1,735,000
Pope & Talbot 8.375 2013 3,000,000 2,741,250
Silgan
Sr Sub Nts 11.75 2002 3,000,000 3,097,500
Stone Container
1st Mtge 10.75 2002 1,300,000 (e) 1,300,000
____________
Total 14,677,875
_____________________________________________________________________________________________________________________________
<PAGE>
Restaurants & lodging (0.5%)
Hammons (Jonn Q) Hotel
1st Mtge 8.875 2004 3,000,000 2,647,500
Hospitality Franchise System
Cv 4.50 1999 900,000 910,125
____________
Total 3,557,625
_____________________________________________________________________________________________________________________________
Retail (2.8%)
Dairy Mart Stores
Sr Sub Nts 10.25 2004 3,000,000 (b) 2,340,000
Eye Care Center 12.00 2003 4,000,000 3,480,000
Grand Union 12.25 2002 3,000,000 (h) 2,208,750
Sr Sub Nts 12.25 2002 2,000,000 1,472,500
Kash n' Karry Food Stores
Sub Deb 14.00 2001 4,000,000 (k) 1,160,000
Penn Traffic
Sr Nts 10.25 2002 1,000,000 1,016,250
Sr Sub Nts 9.625 2005 2,000,000 1,820,000
Specialty Retailers 10.00 2000 2,250,000 2,182,500
Wal-Mart Stores 8.875 2011 3,500,000 3,661,875
____________
Total 19,341,875
_____________________________________________________________________________________________________________________________
Textiles & apparel (1.0%)
Dominion Textiles
Sr Nt 8.875 2003 3,900,000 3,627,000
JPS Textile Group 9.85 1999 839,000 687,980
WestPoint Stevens
Sr Nts 8.75 2001 2,500,000 2,325,000
_____________
Total 6,639,980
_____________________________________________________________________________________________________________________________
Miscellaneous industry (0.6%)
ECM Funding LP 11.918 2002 1,216,336 (j) 1,337,969
EIP Funding 10.25 2012 3,000,000 2,951,250
_____________
Total 4,289,219
_____________________________________________________________________________________________________________________________
Transportation (--%)
Interpool
Cv 5.25 2018 200,000 152,000
_____________________________________________________________________________________________________________________________
<PAGE>
Utilities (10.1%)
Electric (7.3%)
Arizona Public Service
1st Mtge 8.75 2024 3,000,000 2,887,500
Sale Lease-Backed Obligation 8.00 2015 3,600,000 3,222,000
Commonwealth Edison
1st Mtge 9.875 2020 4,000,000 4,150,000
Gulf States Utilities
1st Mtge 8.70 2024 6,000,000 5,647,500
Long Island Lighting
Gen Ref Mtge 9.625 2024 3,000,000 2,715,000
Gen Ref Mtge 9.75 2021 3,000,000 2,737,500
Louisiana Power & Light
Sale Lease-Backed Obligation 10.30 2005 1,900,000 1,999,750
Midland Cogeneration Venture 11.75 2005 2,000,000 1,940,000
Sub Secured Sale Lease-Backed Obligation 10.33 2002 4,598,380 4,483,421
Pacific Gas & Electric
1st & Ref 7.25 2026 4,000,000 3,340,000
Pennsylvania Power & Light
1st Mtge 9.25 2019 900,000 907,875
Sithe Independence Funding 9.00 2013 2,000,000 1,925,000
Texas-New Mexico Power
1st Mtge 9.25 2000 3,000,000 2,985,000
1st Mtge 10.00 2017 2,969,000 2,972,711
Texas Utilities Electric
1st Mtge 7.375 2025 3,000,000 2,501,250
1st Mtge 9.75 2021 4,900,000 5,077,625
____________
Total 49,492,132
_____________________________________________________________________________________________________________________________
Gas (1.7%)
Questar Pipelines 9.375 2021 3,000,000 3,135,000
Tennessee Gas Pipeline 6.00 2011 600,000 438,750
Transco Energy 9.375 2001 4,000,000 3,955,000
Transcontinental Gas Pipeline 8.875 2002 4,000,000 3,960,000
____________
Total 11,488,750
______________________________________________________________________________________________________________________________
Telephone (1.1%)
AmeriTech Capital Funding 9.10 2016 4,000,000 4,255,000
New York Tel 9.375 2031 3,500,000 3,613,750
____________
Total 7,868,750
_____________________________________________________________________________________________________________________________
<PAGE>
Foreign (13.7%)(l)
ABN Amro
(U.S. Dollar) 7.75 2023 5,500,000 4,984,375
Agnico Eagle Mines
(U.S. Dollar) Cv 3.50 2004 850,000 773,500
Bacnotan Consolidated Inds
(U.S. Dollar) Cv 5.50 2004 750,000 (h) 714,375
Banca Italy N.Y.
(U.S. Dollar) 8.25 2007 3,000,000 2,895,000
Banco Nacional de Comercia
(U.S. Dollar) 7.25 2004 4,000,000 3,320,000
Canadian Pacific Forest
(U.S. Dollar) 9.375 2004 3,000,000 2,861,250
Cemex Euro
(U.S. Dollar) Cv 4.25 1997 700,000 (h) 700,000
Doman Inds
(U.S. Dollar) 8.75 2004 3,000,000 2,655,000
Ford Capital BV
(U.S. Dollar) 9.125 1998 4,000,000 4,175,000
Govt of Australia
(Australian Dollar) 9.00 2004 4,400,000 2,992,176
Guang Dong Enterprise
(U.S. Dollar) 8.75 2003 4,000,000 (h) 3,740,000
Hanson Inds
(British Pound) Cv 9.50 2006 1,000,000 1,668,970
Henderson Capital Intl Euro
(U.S. Dollar) Cv 4.00 1996 750,000 (h) 735,938
Hydro Quebec
(U.S. Dollar) 9.40 2021 2,400,000 2,499,000
Korea Electric Power
(U.S. Dollar) 6.375 2003 1,800,000 1,536,750
(U.S. Dollar) 8.00 2002 2,800,000 2,705,500
Lend Lease Euro
(U.S. Dollar) Cv 4.75 2003 800,000 (h) 876,000
Macmillan Bloe Delaware
(U.S. Dollar) 8.50 2004 3,000,000 2,917,500
Mexican/United States Govt Euro
(U.S. Dollar) 5.81 2019 3,500,000 3,018,750
(U.S. Dollar) 6.25 2019 6,000,000 3,885,000
Noranda Forest
(U.S. Dollar) 7.50 2003 4,000,000 3,755,000
Petroleos Mexicanos
(U.S. Dollar) 8.625 2023 5,000,000 4,143,750
Philippine Long Distance Telephone
(U.S. Dollar) 10.625 2004 1,500,000 1,488,750
<PAGE>
Placer Dome
(U.S. Dollar) 7.125 2003 5,000,000 4,606,250
PT Indah Kiat Euro
(U.S. Dollar) 8.875 2000 3,000,000 2,640,000
Qantas Air
(U.S. Dollar) 7.50 2003 4,000,000 (h) 3,650,000
Republic of Argentina
(U.S. Dollar) 4.00 2023 8,000,000 3,980,000
Republic of Brazil
(U.S. Dollar) 4.00 2014 3,000,000 1,653,750
Republic of Columbia
(U.S. Dollar) 7.25 2004 5,000,000 4,325,000
Roche Holdings
(U.S. Dollar) 2.75 2000 4,000,000 3,105,000
Rogers Cantel Mobile
(U.S.Dollar) Sr Sec Gtd Nts 10.75 2001 3,000,000 3,120,000
Rogers Comunication
(U.S. Dollar) Cv 2.00 2005 1,200,000 735,000
Scotland Bank
(U.S. Dollar) 8.80 2004 3,500,000 (h) 3,578,750
Tarkett Intl
(U.S. Dollar) 9.00 2002 2,000,000 1,850,000
United Engineers Malaysia
(U.S. Dollar) Cv 2.00 2004 750,000 (h) 757,500
____________
Total 93,042,834
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $627,175,095) $596,062,530
_____________________________________________________________________________________________________________________________
<PAGE>
_____________________________________________________________________________________________________________________________
<CAPTION>
Preferred stocks & other (3.1%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
ABN AMRO Holdings
6% Cv 27,400 (l) $ 899,405
Algoma Finance
5.50% Cv 48,755 804,555
Amer Life Holdings
2.16% Cv 120,000 2,565,000
Anacomp
$8.25 Cv 10,000 (j) 360,000
Envirodyne Inds
Common 30,296 (k) 177,989
EnviroSource
7.25% Cm Cv 30,000 3,450,000
Eye Care Center
Warrants 4,000 40,000
First Chicago
2.875% Cm Cv 25,000 1,218,750
First Madison Bank
11.50% Cv 30,000 3,135,000
Merry Land & Investment
1.75% Cm Cv 17,300 449,800
Natl Health Investors
8.50% Cv 23,000 583,625
Pittston Mineral
$3.125 Cm Cv 10,000 (h) 445,000
Property Trust Amer
$1.75 Cv 22,500 528,750
Public Service of
New Hampshire
10.60% Cm 98,000 2,458,820
Snyder Oil
6% Cv 50,000 1,212,500
Sonoco Products
$2.25 Cm Cv 22,800 1,171,350
Tele-Communications 25,000 1,603,125
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $22,819,189) $ 21,103,669
_____________________________________________________________________________________________________________________________
<PAGE>
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (6.4%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (1.2%)
Federal Home Loan Mtge Disc Note
11-02-94 4.82% $2,600,000 $ 2,588,907
Student Loan Marketing Assn Disc Note
10-20-94 4.75 5,500,000 5,486,270
____________
Total 8,075,177
______________________________________________________________________________________________________________________________
Commercial paper (5.1%)
Ameritech Capital Funding
11-02-94 4.89 2,100,000 (m) 2,090,909
Aon
10-12-94 4.77 2,100,000 2,096,952
Becton Dickinson Real Estate
10-17-94 4.86 1,200,000 (m) 1,197,429
Fleet Funding
10-19-94 4.79 5,100,000 (m) 5,087,837
General Mills
10-25-94 4.79 1,300,000 1,295,875
Mobil Australia Finance (Delaware)
10-25-94 4.94 600,000 (m) 598,032
Motorola
10-19-94 4.78 3,200,000 3,192,384
Nestle Capital
10-03-94 4.74 1,000,000 999,738
11-01-94 4.90 4,100,000 4,082,771
PepsiCo
10-05-94 4.74 1,100,000 1,099,423
Pfizer
10-27-94 4.84 6,500,000 6,477,373
St. Paul Companies
10-26-94 4.80 4,100,000 (m) 4,086,390
USAA Capital
10-03-94 4.75 2,000,000 1,999,474
____________
Total 34,304,587
_____________________________________________________________________________________________________________________________
Letter of credit (0.1%)
First Natl Bank Chicago-Commed Fuel
11-02-94 4.97 1,000,000 995,600
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $43,375,364) $ 43,375,364
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $693,369,648)(n) $660,541,563
_____________________________________________________________________________________________________________________________
<PAGE>
________________________________________________________________________________________________________________
Notes to investments in securities
________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Security is partially or fully on loan. See Note 6 to the financial statements.
(c) Partially pledged as initial deposit on the following open interest rate futures purchase contract (see Note
7 to the financial statements):
<CAPTION>
Type of security Par value
_________________________________________________________________________________
<S> <C>
U.S. Treasury Bond, Dec. 1994 15,000,000
_________________________________________________________________________________
(d) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date
of acquisition.
(e) At Sept. 30, 1994, the cost of securities purchased on a when-issued basis was $2,307,638.
(f) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the same
magnitude as, or in a multiple decline (increase) in the LIBOR (London InterBank Offering Rate) Index.
Interest rate disclosed is the rate in effect on Sept. 30, 1994.
(g) This security is a collateralized mortgage obligation that pays no interest or principal during its initial
accrual period until payment of previous series within the trust have been paid off. Interest is accrued at an
effective yield; similar to a zero coupon bond.
(h) Represents a security sold under Rule 144A, which is exempt from registration under the
Securities Act of 1933, as amended. This security has been determined to be liquid
under guidelines established by the board of directors.
(i) Interest rate varies, rate shown is the effective rate on Sept. 30, 1994.
(j) Identifies issues considered to be illiquid, (see Note 9 to the financial
statements). Information concerning such security holdings at Sept. 30, 1994, is as follows:
<CAPTION>
Security Acquisition Cost
date
__________________________________________________________________________________
<S> <C> <C>
Anacomp
$8.25 Series 1 08-20-92 $ 347,500
12.25% Series B 08-21-92 2,838,375
ECM Funding LP
11.918% 2002 04-13-92 1,216,336
(k) Presently non-income producing. For long-term debt securities, items identified are in default as to
payment of interest and/or principal.
(l) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are
denominated in the currency indicated.
<PAGE>
(m) 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.
(n) At Sept. 30, 1994, the cost of securities for federal income tax purposes was approximately
$692,902,000 and the approximate aggregate gross unrealized appreciation and depreciation based on
that cost was:
<CAPTION>
<S> <C>
Unrealized appreciation $ 6,528,000
Unrealized depreciation (38,888,000)
________________________________________________________________________________________________________________
Net unrealized depreciation $(32,360,000)
________________________________________________________________________________________________________________
</TABLE>
PAGE
<TABLE>
Investments in securities
IDS Strategy Fund, Inc.
Short-Term Income Fund (Percentages represent value of
Sept. 30, 1994 (Unaudited) investments compared to net assets)
<CAPTION>
_____________________________________________________________________________________________________________________________
Bonds (62.2%)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
U.S. government obligations (36.3%)
U.S. Treasury 3.875% 1995 $28,000,000 $ 27,786,077
4.125 1995 9,800,000 9,704,253
5.625 1998 25,000,000 23,999,248
7.50 1996 5,000,000 5,082,249
7.875 1996 10,100,000 10,322,097
____________
Total 76,893,924
_____________________________________________________________________________________________________________________________
Mortgage-backed securities (20.1%)
Federal Home Loan Mtge Corp 5.332 1994-19 37,768 (b) 37,628
5.857 1994-22 5,961 (b) 5,994
5.881 1994-22 1,123 (b) 1,130
6.00 1994-21 35,541 (b) 35,902
6.114 1994-22 42,578 43,855
6.50 1994-03 1,609,676 1,441,159
6.831 1994-21 36,943 (b) 38,606
7.988 1994-18 14,666 (b) 14,813
8.00 1994-24 1,098,383 1,074,356
Federal Natl Mtge Assn 6.00 1994-23 1,176,823 1,013,906
6.50 1994-24 10,203,338 9,103,290
8.50 1994-23 9,307,626 9,330,895
9.00 2024 10,000,000 10,275,000
Collateralized Mtge Obligation 6.50 2017 4,120,710 4,022,720
Collateralized Mtge Obligation Inverse Floater 9.188 2022 800,000 (c) 739,480
Interest Only 7.00 2023 1,574,354 (d) 1,630,569
Govt Natl Mtge Assn 9.50 1994-16 3,625,081 3,813,132
____________
Total 42,622,435
_____________________________________________________________________________________________________________________________
Automotive & related (2.4%)
General Motors Acceptance 6.50 1995 2,500,000 2,506,250
9.00 1995 2,500,000 2,521,875
____________
Total 5,028,125
_____________________________________________________________________________________________________________________________
Banks and savings & loans (0.1%)
Bank New York Master Credit Card 7.95 1996 333,334 333,573
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investments in securities
IDS Strategy, Fund, Inc.
Short-Term Income Fund (Percentages represent value of
Sept. 30, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
Beverages & tobacco (2.4%)
Philip Morris 8.25 1995 5,000,000 5,056,250
_____________________________________________________________________________________________________________________________
Financial services (0.9%)
Beneficial 9.35 1995 1,900,000 1,942,750
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $135,527,817) $131,877,057
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (38.6%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (2.5%)
Student Loan Marketing Assn
10-20-94 4.75% $5,400,000 $ 5,386,520
_____________________________________________________________________________________________________________________________
Commercial paper (36.1%)
Ameritech Capital Funding
11-02-94 4.89 2,600,000 (e) 2,588,745
Cargill
10-28-94 4.89 900,000 896,713
Ciesco LP
10-13-94 4.77 2,500,000 2,496,042
10-26-94 4.78 1,400,000 1,395,382
CIT Group Holdings
10-04-94 4.56 2,300,000 2,299,134
Commerzbank US Financial
10-11-94 4.79 9,500,000 9,487,412
11-01-94 4.89 4,000,000 3,983,226
Eiger Capital
11-04-94 4.90 5,400,000 (e) 5,375,112
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investments in securities
IDS Strategy Fund, Inc.
Short-Term Income Fund (Percentages represent value of
Sept. 30, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
Commercial paper (cont'd)
Fleet Funding
10-17-94 4.79 10,100,000 (e) 10,078,588
Gateway Fuel
10-13-94 4.77 1,500,000 1,497,625
General Mills
10-25-94 4.79 8,600,000 8,572,709
Goldman Sachs Group LP
10-25-94 4.80 2,000,000 1,993,640
Hewlett-Packard
10-28-94 4.92 5,500,000 5,479,787
Melville
10-19-94 4.78 3,000,000 2,992,860
Merrill Lynch
10-13-94 4.80 1,400,000 1,397,774
Metlife Funding
10-17-94 4.77 4,700,000 4,690,078
Nestle Capital
10-03-94 4.74 2,600,000 2,599,318
10-13-94 4.79 800,000 798,728
St. Paul Companies
10-11-94 4.77 600,000 (e) 599,208
10-26-94 4.80 3,600,000 (e) 3,588,050
Toyota Motor Credit
10-07-94 4.74 1,000,000 999,213
11-01-94 4.93 2,600,000 2,589,007
____________
Total 76,398,351
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $81,784,871) $ 81,784,871
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $217,312,688)(f) $213,661,928
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE
Investments in securities
IDS Strategy Fund, Inc.
Short-Term Income Fund
Sept. 30, 1994 (Unaudited)
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Adjustable rate mortgage; interest rate varies to reflect current market conditions; rate shown is the effective rate on
Sept. 30, 1994.
(c) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the same magnitude as, or
in a multiple decline (increase) in the LIBOR (London InterBank Offering Rate) Index. Interest rate disclosed is the rate
in effect on Sept. 30, 1994.
(d) Principal amounts and interest rates disclosed for interest-only securities represent amortized cost and coupon rates,
respectively.
(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". This security has been determined to be liquid
under guidelines established by the board of directors.
(f) On Sept. 30, 1994, the cost of securities for federal income tax purposes was approximately $217,171,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
<CAPTION>
<S> <C>
Unrealized appreciation $ 144,000
Unrealized depreciation (3,653,000)
____________________________________________________________________________________________
Net unrealized depreciation $(3,509,000)
____________________________________________________________________________________________
</TABLE>
PAGE
<TABLE>
Investments in securities
<CAPTION>
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
Sept. 30, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (87.1%)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Argentina (2.1%)
Energy (0.5%)
YPF Sociedad Anonima ADR 56,700 $ 1,431,675
______________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.0%)
Perez Naviera B Shares 552,000 (c) 3,124,872
______________________________________________________________________________________________________________________________
Utilities-telephone (0.6%)
Telefonica de Argentina ADR 25,000 (d) 1,731,250
______________________________________________________________________________________________________________________________
Australia (7.5%)
Banks and savings & loans (1.2%)
Westpac Banking 1,114,000 3,463,426
_____________________________________________________________________________________________________________________________
Energy (0.8%)
Broken Hill Proprietary 173,000 2,515,074
_____________________________________________________________________________________________________________________________
Industrial transportation (1.1%)
Brambles Inds 316,214 3,206,726
_____________________________________________________________________________________________________________________________
Metals (2.4%)
CRA 201,600 (d) 2,835,302
Pasminco 2,806,000 (c) 4,298,792
_____________
Total 7,134,094
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.0%)
Ampolex 1,033,000 (d) 3,012,228
_____________________________________________________________________________________________________________________________
Retail (1.0%)
Woolworth 1,441,293 3,007,978
_____________________________________________________________________________________________________________________________
Belgium (0.3%)
Industrial equipment & services
Bekaert 1,400 1,039,375
_____________________________________________________________________________________________________________________________
Canada (0.4%)
Utilities-telephone
BCE Mobile 45,100 (c) 1,299,263
_____________________________________________________________________________________________________________________________
Chile (1.0%)
Utilities-telephone
Telefonos de Chile 35,000 3,071,250
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
____________________________________________________________________________________________________________________________
Denmark (1.1%)
Utilities-telephone
Teledanmark B Shares 61,800 3,363,094
____________________________________________________________________________________________________________________________
Finland (0.4%)
Banks and savings & loans
Kansallis-Osake-Pankki 525,000 (c) 1,078,350
_____________________________________________________________________________________________________________________________
France (6.3%)
Banks and savings & loans (0.5%)
Credit Commercial de France 39,277 1,586,555
_____________________________________________________________________________________________________________________________
Building materials (0.8%)
LaFarge-Coppee (Bearer) 30,129 (c) 2,368,109
_____________________________________________________________________________________________________________________________
Electronics (0.3%)
Alcatel Alsthom Electricite 8,256 762,516
_____________________________________________________________________________________________________________________________
Energy (2.1%)
Societe Elf Acquitaine 60,800 4,361,062
Total Petroleum Cl B 33,330 (d) 1,957,838
_____________
Total 6,318,900
_____________________________________________________________________________________________________________________________
Financial services (0.8%)
Cie de Suez 51,000 2,423,979
_____________________________________________________________________________________________________________________________
Insurance (0.4%)
Union des Assurances Federales 12,500 (c) 1,326,025
____________________________________________________________________________________________________________________________
Miscellaneous (1.4%)
Lyonnaise des Eaux Dumez 46,690 4,140,423
_____________________________________________________________________________________________________________________________
Germany (1.0%)
Building materials (0.1%)
Hochtief 385 243,097
_____________________________________________________________________________________________________________________________
Industrial transportation (0.6%)
Preussag 6,400 1,827,565
_____________________________________________________________________________________________________________________________
Retail (0.3%)
Karstadt 2,613 1,008,464
______________________________________________________________________________________________________________________________
Hong Kong (4.6%)
Banks and savings & loans (0.7%)
Hang Seng Bank 292,000 2,049,840
_____________________________________________________________________________________________________________________________
Industrial transportation (0.5%)
Shun Tak Holdings 1,712,000 1,439,792
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
____________________________________________________________________________________________________________________________
Multi-industry conglomerates (2.2%)
Hutchison Whampoa 616,000 2,909,368
Swire Pacific Cl A 329,000 2,575,741
Wharf Holdings 334,100 1,344,418
_____________
Total 6,829,527
______________________________________________________________________________________________________________________________
Real estate (0.5%)
Great Eagle Holdings 2,552,000 1,477,608
______________________________________________________________________________________________________________________________
Retail (0.7%)
Dairy Farm Intl 1,477,000 2,024,967
_____________________________________________________________________________________________________________________________
Japan (23.4%)
Banks and savings & loans (1.6%)
Fuji Bank 91,000 1,929,291
Sumitomo Trust & Banking 200,000 2,968,000
_____________
Total 4,897,291
_____________________________________________________________________________________________________________________________
Building materials (1.1%)
Asahi glass 200,000 (d) 2,463,400
Nihon Cement 133,000 993,510
_____________
Total 3,456,910
_____________________________________________________________________________________________________________________________
Electronics (4.4%)
Hitachi 232,000 2,239,032
Kyocera 45,000 3,216,555
Rohm 43,000 (d) 1,875,402
TDK 35,000 1,558,270
Toshiba 375,000 2,820,375
Yokogawa Electric 139,000 1,445,322
_____________
Total 13,154,956
_____________________________________________________________________________________________________________________________
Financial services (1.6%)
Daiwa Securities 71,000 1,039,369
Nomura Securities 126,000 2,607,696
Yamaichi Securities 150,000 1,173,600
_____________
Total 4,820,665
______________________________________________________________________________________________________________________________
<PAGE>
PAGE
____________________________________________________________________________________________________________________________
Food (0.3%)
Nichirei 131,000 (c) 927,087
_____________________________________________________________________________________________________________________________
Furniture & appliances (0.8%)
Sony 39,600 2,302,819
______________________________________________________________________________________________________________________________
Industrial equipment & services (1.4%)
Ishikawajima-Harima Heavy Inds 284,000 1,379,104
Mitsubishi Heavy Inds 357,000 (c) 2,774,961
_____________
Total 4,154,065
_____________________________________________________________________________________________________________________________
Industrial transportation (0.6%)
Nippon Express 182,000 1,929,200
_____________________________________________________________________________________________________________________________
Insurance (1.5%)
Tokio Marine & Fire 390,000 (c) 4,646,070
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.8%)
Konica 145,000 1,046,610
Nintendo 24,000 1,395,648
_____________
Total 2,442,258
____________________________________________________________________________________________________________________________
Machinery (1.9%)
Fanuc 64,000 2,991,616
Fuji Machine Mfg 80,000 2,746,080
_____________
Total 5,737,696
______________________________________________________________________________________________________________________________
Media (0.4%)
Tokyo Broadcast 75,000 1,203,900
_____________________________________________________________________________________________________________________________
Metals (0.9%)
Nippon Steel 708,000 2,787,396
______________________________________________________________________________________________________________________________
Real estate (1.2%)
Mitsui Fudoson 300,000 3,422,400
_____________________________________________________________________________________________________________________________
Retail (2.7%)
Amway Japan 15,000 467,940
Aoyama Trading 24,000 818,976
Chiyoda 16,000 329,520
Family Mart 20,500 1,316,285
Ito-Yokado 66,000 3,524,862
Keiyo 300 5,815
Marui 93,000 1,614,852
_____________
Total 8,078,250
_____________________________________________________________________________________________________________________________
Wire & cable (1.4%)
Sumitomo Electric Inds 292,000 4,304,080
_____________________________________________________________________________________________________________________________
Miscellaneous (0.8%)
Itochu 310,000 (c) 2,268,890
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
_____________________________________________________________________________________________________________________________
Malaysia (2.4%)
Banks and savings & loans (0.4%)
Malayan Banking 167,500 1,117,225
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.4%)
Resorts World 214,000 1,352,266
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.8%)
Sime Darby 803,000 2,317,458
_____________________________________________________________________________________________________________________________
Utilities-electric (0.5%)
Tenaga Nasional 288,000 1,516,608
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.3%)
Telekom Malaysia 99,000 776,160
_____________________________________________________________________________________________________________________________
Mexico (3.7%)
Building materials (3.5%)
Cemex & Tolmex Series B ADR 310,875 (d) 5,751,188
Empresas ICA Sociedad Controladora ADR 120,000 (d) 3,870,000
Grupo Mexicano de Desarollo
Series B ADR 41,800 (c) 825,550
_____________
Total 10,446,738
_____________________________________________________________________________________________________________________________
Retail (0.2%)
Benavides B Shares 162,000 634,360
_____________________________________________________________________________________________________________________________
Netherlands (3.5%)
Chemicals (1.0%)
Akzo Nobel 26,000 3,050,632
____________________________________________________________________________________________________________________________
Food (0.8%)
Unilever NV CVA 20,000 2,283,400
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.3%)
Stork VMF 31,553 779,959
_____________________________________________________________________________________________________________________________
Insurance (0.2%)
Intl Nederlanden Groep 13,837 596,582
_____________________________________________________________________________________________________________________________
Media (1.2%)
Elsevier 38,000 3,635,042
____________________________________________________________________________________________________________________________
New Zealand (1.2%)
Multi-industry conglomerates (0.3%)
Fletcher Challenge 358,900 918,425
____________________________________________________________________________________________________________________________
Paper & packaging (0.9%)
Carter Holt Harvey 1,231,700 2,795,959
____________________________________________________________________________________________________________________________
Norway (1.0%)
Energy (0.6%)
Saga Petroleum Cl A 169,080 1,878,817
_____________________________________________________________________________________________________________________________<PAGE>
PAGE
______________________________________________________________________________________________________________________________
Industrial transportation (0.4%)
First Olsen Tankers 130,000 (c) 1,052,350
______________________________________________________________________________________________________________________________
Philippines (0.5%)
Utilities-telephone
Philippines Long Distance Telephone 25,000 1,400,000
_____________________________________________________________________________________________________________________________
Singapore (5.7%)
Automotive and related (1.1%)
Cycle & Carriage 369,000 3,160,854
_____________________________________________________________________________________________________________________________
Banks and savings & loans (1.7%)
Development Bank Singapore ADR 11,250 473,513
Development Bank Singapore ORD 186,500 1,962,353
Overseas Union Bank 484,000 2,774,772
_____________
Total 5,210,638
_____________________________________________________________________________________________________________________________
Beverages & tobacco (1.0%)
Fraser & Neave 256,600 3,046,099
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.8%)
Sembawang Shipyard 297,000 2,383,722
____________________________________________________________________________________________________________________________
Industrial transportation (1.1%)
Keppel 392,000 3,172,848
_____________________________________________________________________________________________________________________________
Spain (4.2%)
Banks and savings & loans (1.5%)
Banco de Galicia Buenos ADR 69,500 (d) 2,197,937
Banco Popular 18,890 2,241,185
_____________
Total 4,439,122
_____________________________________________________________________________________________________________________________
Energy (0.4%)
Repsol 43,000 1,311,371
_____________________________________________________________________________________________________________________________
Telecommunications (2.3%)
Telefonica 505,000 6,816,490
_____________________________________________________________________________________________________________________________
Sweden (2.0%)
Health care (0.6%)
Astra Cl A 35,250 844,731
Astra Cl B 36,300 852,905
_____________
Total 1,697,636
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.6%)
Asea B Free Shares 26,700 1,885,634
_____________________________________________________________________________________________________________________________
Metals (0.5%)
Trelleborg B Free Shares 105,000 1,401,750
_____________________________________________________________________________________________________________________________
Paper & packaging (0.3%)
SCA B Free Shares 59,000 945,180
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
___________________________________________________________________________________________________________________________
Switzerland (1.1%)
Banks and savings & loans (0.7%)
Swiss Bank 16,200 (c) 2,239,682
____________________________________________________________________________________________________________________________
Insurance (0.4%)
Swiss Re 2,680 (c) 1,303,051
_____________________________________________________________________________________________________________________________
Thailand (0.4%)
Banks and savings & loans
Siam Commercial Bank 126,000 1,220,814
_____________________________________________________________________________________________________________________________
United Kingdom (13.3%)
Banks and savings & loans (0.5%)
National Westminster 215,000 1,650,125
_____________________________________________________________________________________________________________________________
Building materials (1.3%)
CRH 160,000 884,160
Tarmac 1,450,000 2,910,150
_____________
Total 3,794,310
_____________________________________________________________________________________________________________________________
Energy (0.6%)
Shell Transport & Trading 158,700 1,745,224
_____________________________________________________________________________________________________________________________
Health care (0.4%)
Wellcome 127,410 1,302,895
_____________________________________________________________________________________________________________________________
Insurance (0.5%)
Sun Alliance Group 286,000 1,445,444
_____________________________________________________________________________________________________________________________
Leisure (1.8%)
Rank Organisation 635,000 4,023,995
Thorn Emi 90,000 1,395,720
_____________
Total 5,419,715
____________________________________________________________________________________________________________________________
Machinery (1.3%)
Siebe 474,000 4,029,948
_____________________________________________________________________________________________________________________________
Media (0.4%)
WPP 720,000 1,235,520
_____________________________________________________________________________________________________________________________
Metals (1.1%)
RTZ 238,500 3,298,694
_____________________________________________________________________________________________________________________________
Multi-industrial (2.6%)
BTR 610,000 2,962,770
Framlington Maghreb Fund Units 13,400 (c) 686,750
Hanson 593,100 2,149,988
T & N 605,000 2,128,995
_____________
Total 7,928,503
_____________________________________________________________________________________________________________________________
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_____________________________________________________________________________________________________________________________
Real estate (0.6%)
MEPC 250,000 1,747,500
_____________________________________________________________________________________________________________________________
Retail (1.1%)
Next 888,400 3,343,049
_____________________________________________________________________________________________________________________________
Transportation (1.1%)
British Airways 589,000 3,347,287
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $244,812,168) $261,915,041
_____________________________________________________________________________________________________________________________
Other (0.4%)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Australia (0.3%)
Broken Hill Proprietary
Warrants 692,000 $ 824,172
_____________________________________________________________________________________________________________________________
Japan (0.1%)
Fujitsu
Warrants 2,600 363,495
_____________________________________________________________________________________________________________________________
Total other
(Cost: $1,300,328) $ 1,187,667
_____________________________________________________________________________________________________________________________
Short-term securities (16.2%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (2.1%)
Federal Home Loan Mtge Corp
10-24-94 4.75% $4,700,000 $ 4,685,827
Federal Natl Mtge Assn Disc Notes
10-03-94 4.70 500,000 499,870
10-13-94 4.73 1,000,000 998,426
_____________
Total 6,184,123
_____________________________________________________________________________________________________________________________
Commercial paper (14.1%)
Aon
10-21-94 4.78 2,500,000 2,493,389
CPC Intl
11-01-94 4.83 1,000,000 (e) 995,867
Colgate Palmolive
10-06-94 4.76 3,500,000 (e) 3,497,696
11-04-94 4.87 2,200,000 (e) 2,189,923
<PAGE>
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Commerzbank U.S. Finance
10-31-94 4.92 600,000 597,550
Consolidated Rail
10-28-94 4.82 2,200,000 (e) 2,192,113
Eiger Capital
11-04-94 4.90 3,900,000 (e) 3,882,025
Gannett
10-20-94 4.77 3,500,000 (e) 3,491,226
Metlife Funding
10-04-94 4.75 700,000 699,724
10-17-94 4.77 3,500,000 3,492,611
10-26-94 4.89 2,000,000 1,993,236
Natl Australia Funding
11-01-94 4.90 2,100,000 2,091,175
Nestle Capital
10-13-94 4.79 700,000 698,887
Pfizer
10-14-94 4.77 3,000,000 2,994,854
Southwestern Bell Capital
10-26-94 4.78 2,200,000 (e) 2,192,743
Sysco
10-17-94 4.84 3,400,000 (e) 3,392,626
Toyota Motor Credit
10-17-94 4.78 1,500,000 1,496,827
USAA Capital
10-12-94 4.77 4,000,000 3,994,194
_____________
Total 42,386,666
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $48,570,910) $ 48,570,789
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $294,683,406)(f) $311,673,497
_____________________________________________________________________________________________________________________________
<PAGE>
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_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Foreign security values are stated in U.S. dollars.
(c) Presently non-income producing.
(d) Security is partially or fully on loan. See Note 6 to the financial statements.
(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." This security has been determined to be liquid under guidelines
established by the board of directors.
(f) At Sept. 30, 1994, the cost of securities for federal income tax purposes was approximately $294,683,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
<CAPTION>
<S> <C>
Unrealized appreciation $25,407,000
Unrealized depreciation (8,417,000)
_________________________________________________________________________________________________________________________
Net unrealized appreciation $16,990,000
_________________________________________________________________________________________________________________________
</TABLE>
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Directors and officers
Directors and officers of the fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested directors who are officers and/or employees of IDS
William H. Dudley
Exective 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.<PAGE>
PAGE
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposit (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income.
Secondary objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia<PAGE>
PAGE
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher rated,
lower risk bond categories, or the equivalent, and in government bonds.
(icon of) greek column
IDS Strategy, Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
(icon of) chess piece
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
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and notes
to seek a high level of current income.
(icon of) chess piece
Tax-exempt income investments
These funds provide tax-free income by investing in municipal bonds.
The income is generally free from federal income tax. Risk varies
by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed<PAGE>
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IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities
to provide income to residents of each respective state that is
exempt from federal, state and local income taxes. (New York
is the only state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk bond
categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the Fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
Growth and income investments
These funds focus on securities of medium to large, well-established
companies that offer long-term growth of capital and reasonable income
from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The Fund may invest up to 20%
of its assets in the U.S. market.
(icon of) three flags
IDS Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the world
that offer potential for superior growth. Holdings may range from
small- to large- capitalization stocks, including those of companies
involved in areas of rapid economic growth.
(icon of) chess piece
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
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IDS Equity Plus 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 IDS research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) chess piece
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high current
income and, secondarily, to benefit from the growth potential offered
by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice<PAGE>
PAGE
Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy, Aggressive Equity Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy.
These companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth
potential due to superiority in technology, marketing or management.
The fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
<PAGE>
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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
planner or writing to IDS Shareholder Service, P.O. Box 534, Minneapolis,
MN 55440-0534. Read it carefully before you invest or send money.
<PAGE>
PAGE
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 (TouchTone phones only), including current
fund prices and performance, account values and recent account
transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
Your IDS financial planner
AN AMERICAN EXPRESS COMPANY
1894 IDS 1994
A CENTURY OF INVESTING IN THE FUTURE
IDS Strategy Fund, Inc.
IDS Tower 10
Minneapolis, MN 55440-0010
