<PAGE>
PAGE 1
FINANCIAL PLANNING
IDS Strategy Fund, Inc.
1994 annual report
(prospectus enclosed)
(Icon of) Chess piece
Offers five funds with separate goals and objectives to provide
investment flexibility with no initial sales charge.
IDS
An American Express company
AMERICAN
EXPRESS
Distributed by IDS Financial Services Inc.
<PAGE>
PAGE 2
(Icon of) Chess piece
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.
<PAGE>
PAGE 3
Contents
(Icon of) One book inside of another and their both being opened
together.
The purpose of this annual report is to tell investors how the fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the fund in detail.
See page 3 of the prospectus for a detailed prospectus contents.
1994 annual report
From the president 4
Aggressive Equity Fund
From the portfolio manager 5
Ten largest holdings 6
Long-term performance 7
Equity Fund
From the portfolio manager 8
Ten largest holdings 9
Long-term performance 10
Income Fund
From the portfolio manager 11
Ten largest holdings 12
Long-term performance 13
Short-Term Income Fund
From the portfolio manager 14
Ten largest holdings 15
Long-term performance 16
Worldwide Growth Fund
From the portfolio manager 17
Ten largest holdings 18
Long-term performance 19
All funds
Making the most of your fund 20
Independent auditors' report 22
Financial statements 23
Notes to financial statements 30
Investments in securities 37
IDS mutual funds 62
Federal income tax information 65
1994 prospectus
The funds in brief 3p
Deferred sales charge and fund expenses 5p
Performance 7p
How to buy, exchange or sell shares 17p
Special shareholder services 25p
<PAGE>
Distributions and taxes 26p
Investment policies 29p
How the funds are organized 34p
About IDS 38p
Appendix 39p
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PAGE 4
To our shareholders
(Photo of) William R. Pearce, President of the fund
From the president
As you read this report, you'll find it very different from those
you've received from us in the past. We've made substantial
changes in the design and organization to make the information
easier to find and understand.
The annual report and prospectus are combined into a single
document, and each provides information important to you. The
annual report gives you the fund's performance information and a
snapshot of its investments. A good place to begin is with the
portfolio managers' letters, which describe the events and
investment strategies that most influenced each fund's performance
during the past fiscal year. The prospectus includes essential
data such as the funds' investment policies and service
information.
In redesigning our reports, we asked IDS financial planners and
some of you for suggestions and recommendations. We believe that
you'll find the results of our work worthwhile.
William R. Pearce
(Photo of) Ray E. Hirsch, Portfolio manager
From the portfolio manager
The fund weathered what often was a turbulent stock market during
the past fiscal year, posting a positive total return for the
period. The fund paid a substantial capital gain, which reduced
the fund's net asset value by a like amount.
Growth stocks moved in fits and starts during last spring and
summer, but the overall direction was positive. The first notable
upward move came in May 1993, which was followed in August by
another strong gain. At the forefront of the advances were growth
stocks of smaller companies, often those in technology related
businesses. Our substantial exposure to technology stocks played a
key role in the fund's improved performance.
From that point, growth stocks basically followed a rollercoaster
course. Stock sectors that advanced one month often would fall
back the next. Prominent examples included stocks in the
telecommunications, energy, retailing and health-care areas. The
unpredictability also spread to foreign stocks, a group in which we
built positions last fall. Those stocks soared for a few months,
only to give back much of their gain early in 1994.
We expect the new fiscal year, which began in April, to contain
similar market volatility. Nevertheless, there seem to be enough
positive factors at work to ultimately move stocks higher. If so,
we think the stocks that characterize this portfolio are well-
positioned to lead any market advances.
Ray E. Hirsch<PAGE>
12-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1994 $14.39
March 31, 1993 $15.12
Decrease $ 0.73
Distributions
April 1, 1993 - March 31, 1994
From capital gains $ 1.42
Total return* +4.1%
* The prospectus discusses the effect of the sales charge on the
fund's performance.
<PAGE>
PAGE 5
Your fund's ten largest holdings
(Pie chart representing) The ten holdings listed here make up
19.08% of the fund's net assets.
<TABLE>
<CAPTION>
Aggressive Equity Fund
____________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of March 31, 1994)
____________________________________________________________________________________________
<S> <C> <C>
Lowe's 2.57% $16,770,000
Lowe's Co is a chain of home-improvement stores that
caters mainly to contractors.
Cisco Systems 2.47 16,097,500
A leader in the "router" segment of the networking
industry. (A royter is a device that allows various
computers to communicate.)
Hutchinson Whampoa 2.22 14,469,800
Highly diversified company based in Hong Kong,
positioned to benefit from the above-average growth of
the Pacific Basin region.
Oracle Systems 2.22 14,456,250
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.
COMPAQ Computer 2.02 13,196,250
COMPAQ Computer Corp. manufactures high-performance
laptop, portable and desktop personal computers
using MS-DOS AND OS/2 operating systems.
Southwest Airlines 1.66 10,807,500
Southwest Airlines is a low-cost passenger airlines
based in Texas.
Brinker International 1.59 10,350,000
An operator of several restaurant chains, including
Chili's, Grady's Grill, Spageddi's Italian Food and
Macaroni Grill, across 40 states.
Sun Microsystems 1.47 9,581,250
Sun Microsystems Inc. has grown into the leading
supplier of high-perfomance, RISC/UNIX engineering
workstations and servers.
Sybase Inc. 1.45 9,450,000
A provider of relational database-management software
products and services for on-line applications in
networked computing environments.
Forest Laboratories 1.41 9,218,125
A worldwide pharmaceutical company that produces and
markets prescription and over-the-counter drugs through
independent distribution and under exclusive marketing
contracts with leading pharmaceutical companies.
</TABLE>
<PAGE>
PAGE 6
Your fund's long-term performance
Aggressive Equity Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's stock dividends, interest and
short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Strategy Aggressive Equity Fund
Average annual total return*
(as of Mar. 31, 1994)
$40,000 Since
1 year 5 years 5/14/84 $40,287
+0.1% +12.9% +15.2% Strategy Aggressive
Equity Fund
$30,000
S&P 500
$20,000
Lipper Small Company
Growth Index
$10,000
'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 6/1/84 to 3/31/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $11,568.
Standard & Poor's 500 Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
The Lipper Small Company Growth Fund Index includes 30 funds that
are generally similar to the fund, although some funds in the index
may have somewhat different investment policies or objectives.
On the chart above you can see how the fund's total return compared
to two widely cited performance indexes, the S&P 500 and the Lipper
Small Company Growth Fund Index.
<PAGE>
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
* The 1 and 5 year total return numbers reflect payment of the
applicable deferred sales charges.
<PAGE>
PAGE 7
To our shareholders
Equity Fund
(Photo of) Tom W. Medcalf, Portfolio manager
From the portfolio manager
A strong start by the fund was tempered by a faltering stock market
in the late stages of the fiscal year. Still, over the entire
period, the fund was able to generate a positive return that
exceeded that of the stock market as a whole (as measured by the
Standard & Poor's 500 Stock Index, an unmanaged group of stocks
commonly used to gauge market gains and losses.)
The best return in our diversified fund were provided by our
holdings in banks, auto and chemical industries. As has been true
for some time, the fund's performance also was enhanced by advances
among our stocks of foreign companies. These stocks performed
particularly well last fall.
Another positive factor was our decision to keep a low exposure to
health care and food/beverage/tobacco stocks, two groups that
proved to be poor performers much of the year. As always, we kept
the fund concentrated in value stocks - those whose current prices
are low in relation to what we believe are their true values.
The biggest negative for the fund was a general downturn in the
stock market during February and March, a reaction to rising
interest rates. While fundamentals such as a stronger economy,
improving corporate profits and low inflation are currently still
working in the market's longer-term favor, concern about further
interest-rate rises could well result in periodic setbacks during
the short term. In an effort to weather that type of volatility,
we expect to maintain a higher-than-normal cash level to take
advantage of good buying opportunities that would be created by
temporary stock-market weakness.
Tom W. Medcalf
12-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1994 $ 9.17
March 31, 1993 $ 9.46
Decrease $ 0.29
Distributions
April 1, 1993 - March 31, 1994
From income $ 0.38
From capital gains $ 0.46
Total distributions $ 0.84
Total return* +5.5%
* The prospectus discusses the effect of the sales charge on the
fund's performance.<PAGE>
PAGE 8
Your fund's ten largest holdings
(Pie chart representing) The ten holdings listed here make up
10.51% of the fund's net assets.
<TABLE>
<CAPTION>
Equity Fund
____________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of March 31, 1994)
____________________________________________________________________________________________
<S> <C> <C>
Pacific Telesis 1.15% $11,840,625
The sixth-largest U.S. telephone holding company,
it provides local phone service in parts of
California and Nevada.
McDonald's 1.10 11,375,000
McDonald's Corp. operates, licenses and services
the world's largest chain of fast-food restaurants.
Maytag 1.09 11,250,000
A leading producer of laundry equipment and kitchen
appliances under the Maytag, Magic Chef, Admiral and
Jenn-Air brand names.
Royal Dutch Petroleum 1.06 10,931,250
Royal Dutch Petroleum Co., which includes Royal Dutch
(the Dutch version) and Shell Transport (the English
version) is a major oil company.
General Motors 1.05 10,800,000
A high-technology applications company engaged in
automotive electronics, defense electronics,
telecommunications and commercial technology.
Textron 1.05 10,800,000
A diversified aerospace/technology manufacturer
that also produces commercial products and
provides financial services.
Dow Chemical 1.02 10,521,875
The second-largest U.S. chemical company, Dow
produces basic chemical and plastic, industrial
specialties and household, drug and agricultural
products.
Hanson 1.01 10,434,375
Based in the United Kingdom, Hanson Industries
is an industrial conglomerate with interests in
tobacco, coal mining, industrial products,
building products, consumer products, chemicals,
house building, material handling and forest
products/lumber.
Freeport-McMoRan Copper & Gold .99 10,250,000
One of the world's leading copper and gold
producer based in Indonesia.
Masco Corporation .99 10,237,500
A diversified producer of products for the
home, ranging from faucets to furniture.
</TABLE>
<PAGE>
PAGE 9
Your fund's long-term performance
Equity Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's stock dividends, interest and
short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Strategy Equity Fund
Average annual total return*
(as of Mar. 31, 1994)
$40,000 Since
1 year 5 years 5/14/84 $39,376
+1.5% +11.0% +14.9% Strategy
Equity Fund
$30,000
Lipper Growth
& Income Index
$20,000 S&P 500
$10,000
'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 6/1/84 to 3/31/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $21,104.
Standard & Poor's 500 Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
The Lipper Growth & Income Fund Index, published by Lipper
Analytical Services, Inc. includes 30 funds that are generally
similar to this fund, although some funds in the index may have
somewhat different investment policies or objectives.
On the chart above you can see how the fund's total return compared
to two widely cited performance indexes, the S&P 500 and the Lipper
Growth and Income Fund Index.
<PAGE>
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
* The 1 and 5 year total return numbers reflect payment of the
applicable deferred sales charges.
<PAGE>
PAGE 10
To our shareholders
Income Fund
(Photo of) Jack Utter, Portfolio manager
From the portfolio manager
Despite a substantial decline in the bond market during the second
half of the fiscal year, the fund did provide shareholders with a
positive return for the fiscal year.
Thanks to modest economic growth, low inflation and, most
important, declining interest rates, bonds continued to gain ground
during the first half of the fiscal year. (As interest rates fall,
bond prices, especially those of longer-term bonds, rise, boosting
the net asset value of bond mutual funds.) Because we maintained a
heavy exposure to "longer" bonds, the fund benefited accordingly.
Our second strategy - emphasizing bonds issued by corporations,
both high and low grade - also continued to pay off. The fund was
further helped by our decision to keep a relatively small exposure
to mortgage-backed bonds (bonds that finance home mortgages), which
were under-performers.
Bonds in general began to stumble in mid-October, however, as
rising interest rates brought a halt to what had long been a
positive investment environment. (Rising interest rates
automatically drive down bond prices and, as a result, the net
asset value of bond mutual funds.) Two increases in short-term
rates by the Federal Reserve generally set the tone for rising
rates in the long-term bond market during the period.
We have shortened the average maturity of the fund and increased
our cash reserves in order to reduce volatility during these
uncertain times for the bond market. Eventually, we expect higher
interest rates will lead to a slow-down in the economy. This
should help keep inflation under control, bringing about a more
stable interest-rate environment.
Jack Utter
12-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1994 $ 6.23
March 31, 1993 $ 6.43
Decrease $ 0.20
Distributions
April 1, 1993 - March 31, 1994
From income $ 0.43
From capital gains $ 0.06
Total distributions $ 0.49
Total return* +4.3%
<PAGE>
* The prospectus discusses the effect of the sales charge on the
fund's performance.
<PAGE>
PAGE 11
Your fund's ten largest holdings
(Pie chart representing) The ten holdings listed here make up 7.10%
of the fund's net assets.
<TABLE>
<CAPTION>
Income Fund
____________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of March 31, 1994)
____________________________________________________________________________________________
<S> <C> <C>
Turner Broadcasting System .85% $6,382,500
8.375% Sr Notes 2013
Gulf States Utilities .82 6,142,500
8.70% 1st Mortgage 2024
Delta Air Lines .77 5,795,625
10.375% 2011
Texas Utilities Electric .73 5,469,625
9.75% 1st Mortgage 2021
Noranda Forest .69 5,193,750
8.875% 1999
G-I Holdings .65 4,910,000
11.37% Sub Notes 1998
Exxon Capital .65 4,893,750
6.625% Guaranteed Notes 2002
Placer Dome .65 4,868,750
7.125% 2003
CoreStates Capital .65 4,853,625
9.375% Guaranteed Sub Notes 2003
Republic of Italy .64 4,826,250
6.875% 2023
Excludes U.S. Treasury and government agencies holdings that total 11.3% of the fund's net assets.
</TABLE>
<PAGE>
PAGE 12
Your fund's long-term performance
Income Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's stock dividends, interest and
short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Strategy Income Fund
Average annual total return*
(as of Mar. 31, 1994)
Since
$30,000 1 year 5 years 5/14/84
+0.3% +9.9% +11.3% $28,735
Strategy Income Fund
$20,000
Lehman Aggregate
Bond Index
$10,000
'84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 6/1/84 to 3/31/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $16,277.
The Lehman Aggregate Bond Index is made up of a representative list
of government and corporate bonds as well as asset-backed
securities and mortgage-backed securities. The index is frequently
used as a general measure of bond market performance. However, the
securities used to create the index may not be representative of
the bonds held in IDS Strategy-Income Fund.
On the chart above you can see how the fund's total return compared
to a widely cited performance measure, the Lehman Aggregate Bond
Index.
<PAGE>
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
* The 1 and 5 year total return numbers reflect payment of the
applicable deferred sales charges.
<PAGE>
PAGE 13
To our shareholders
Short-Term Income Fund
(Photo of) James W. Snyder, Portfolio manager
From the portfolio manager
Short-term interest rates remained low throughout most of the past
fiscal year, resulting in a modest return for the fund. The net
asset value declined slightly, but was offset by the fund's
dividend payments.
We continued to emphasize adjustable-rate mortgage securities and
short-term U.S. Treasury securities to provide attractive income
and net asset value stability. As the year progressed, we also
raised our level of cash reserves. This strategy was based on our
outlook for higher short-term interest rates, a trend that
developed early in 1994. Higher interest rates reduce the value of
fixed-income securities. The fund's higher cash level tempered the
effect of the rate rise. Mortgage-backed securities, now about 30%
of our holdings, continued to comprise the bulk of the fund.
During the next several months, we plan to take some of the cash
and invest it in one-year U.S. Treasury notes. We expect this to
improve the fund's yield, while adding only minimal risk to the
fund.
Still, the chief goal of the fund is to provide a stable net asset
value. To accomplish this in what we expect to be an environment
of increasing short-term interest rates, we will keep a relatively
high cash position, while maintaining corporate and mortgage-backed
securities near their current levels.
James W. Snyder
12-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1994 $ 1.00
March 31, 1993 $ 1.03
Decrease $ 0.03
Distributions
April 1, 1993 - March 31, 1994
From income $ 0.04
Total return* +1.3%
* The prospectus discusses the effect of the sales charge on the
fund's performance.
<PAGE>
PAGE 14
Your fund's ten largest holdings
(Pie chart representing) The ten holdings listed here make up
12.43% of the fund's net assets.
<TABLE>
<CAPTION>
Short-Term Income Fund
____________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of March 31, 1994)
____________________________________________________________________________________________
<S> <C> <C>
Phillip Morris 2.69% $5,143,750
8.25% 1995
Mitsubishi Bank 2.11 4,032,000
8.625% 1994
General Motors Acceptance 1.35 2,575,000
9% 1995
Ford Motor 1.32 2,528,125
8.50% 1994
General Motors Acceptance 1.32 2,528,125
6.50% 1995
Bank New York Master Credit Card 1.23 2,354,730
7.95% 1996
Beneficial 1.04 1,995,000
9.35% 1995
Morgan (JP) .53 1,013,750
8.875% Sub Capital Notes 1994
Discovery Card .53 1,001,250
8.375% Asset-Backed Obligation 1996
Ford Credit .31 594,187
8.75% Asset-Backed Obligation 1995
Excludes U.S. Treasury and government agency holdings that total 53.4% of the fund's net assets.
</TABLE>
<PAGE>
PAGE 15
Your fund's long-term performance
Short-Term Income Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's stock dividends, interest and
short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Strategy Short-Term Income Fund
Average annual total return*
(as of Mar. 31, 1994)
Since Lehman Treasury Bond Index
1 year 5 years 2/1/89
- -2.7% +5.8% +6.2%
Merrill Lynch 1-3 Year
Government Index
$13,576
Strategy Short-Term
Income Fund
$10,000
2/1/89** 3/31/89 3/31/90 3/31/91 3/31/92 3/31/93 3/31/94
Assumes: Holding period from 2/1/89 to 3/31/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $3,726.
Merrill Lynch 1-3 Year Government Index is an unmanaged list of all
treasury and agency securities. The index is used here as a
general measure of performance. However, the securities used to
create the index may not be representative of the debt securities
held in IDS Strategy Short-Term Income Fund.
Lehman Treasury Bond Index is made up of a representative list of
general obligation, revenue, insured and prefunded bonds. The
index is frequently used as a general measure of tax-exempt bond
market performance.
<PAGE>
On the chart above you can see how the fund's total return compared
to two widely cited performance indexes, the Merrill Lynch 1-3 year
Government and the Lehman Treasury Bond Index. In comparing
Strategy Short-Term Income Fund to the two indexes, you should take
into account the fact that the fund's performance reflects the
appropriate deferred sales charge, while such charges are not
reflected in the performance of the indexes. If you were actually
to buy either individual stocks or growth mutual funds, any sales
charges that you pay would reduce your total return as well.
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
* The 1 and 5 year total return numbers reflect payment of the
applicable deferred sales charges.
** On Feb. 1, 1989, the fund's goal was changed and the fund's name
was changed from Money Market to Short-Term Income Fund.
<PAGE>
PAGE 16
To our shareholders
Worldwide Growth Fund
(Photo of) Paul Hopkins, Portfolio manager
(Photo of) Peter Lamaison, Portfolio manager
From the portfolio managers
Strong performances by several foreign markets set the stage for a
substantial gain by the fund during its fiscal year. Among the
leaders were two "emerging" markets, Hong Kong and Mexico, which
were up 24% and 22%, respectively. There also were solid returns
from mature markets, including Switzerland, up 16%, and Australia,
up 15%. The only disappointment was Japan, which was virtually
unchanged for the period.
During the fiscal year, we made several modifications to the fund.
Early on, we increased our exposure to Southeast Asian markets, a
move that proved profitable given their subsequent gains. We
funded some of those purchases by selling stock in Japan, which was
buffeted by a weak economy, currency fluctuations and political
uncertainty. Still, by period end we had 28% of the fund's assets
in that country - a reflection of our belief that the Japanese
economy is on the verge of recovery.
Late in the period, Japan became one of the better performing world
markets.
In Europe, we maintained a healthy (18%) exposure to stocks in the
United Kingdom, where we expect the economy to keep improving. We
cut back our holdings in France, however, based on the belief that
interest rates will not decline sufficiently to fuel greater
economic growth.
Beyond those changes, we initiated investment in Mexico, whose
economy should benefit from the North American Free Trade
Agreement. Lastly, we added more holdings in Australia, where we
expect an increasing demand for commodities to provide an economic
boost.
Paul Hopkins
Peter Lamaison
12-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1994 $ 5.37
March 31, 1993 $ 4.51
Increase $ 0.86
April 1, 1993 - March 31, 1994
Total return* +19.1%
<PAGE>
* The prospectus discusses the effect of the sales charge on the
fund's performance.
<PAGE>
PAGE 17
Your fund's ten largest holdings
(Pie chart representing) The ten holdings listed here make up
15.97% of the fund's net assets.
<TABLE>
<CAPTION>
Worldwide Growth Fund
____________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of March 31, 1994)
____________________________________________________________________________________________
<S> <C> <C>
Cemex Class B 1.89% $4,080,000
Mexico's largest cement company.
Sony 1.83 3,942,798
Leading global consumer electronics company
with substantial media interest.
Telefonica 1.71 3,676,800
Spain's monopoly operator of basic telephone
and telex services.
Rank Organisation 1.70 3,657,600
A major leisure-time company with interest in
film, television, travel and lodging.
Ito-Yokado 1.63 3,500,640
Japanese retailer with both supermarket and
specialist outlets.
BTR 1.52 3,273,260
Conglomerate with significant cyclical business
operations in the UK, Australia and North America.
Sumitomo Electric Industries 1.48 3,194,136
Japan's leading wire and cable manufacturer, it
dominates the market for optical fiber cable used
in communications.
Siebe 1.47 3,172,320
A United Kingdom engineering company with significant
U.S. presence in control devices and process systems.
Wharf 1.41 3,046,240
Property and power generation with a major role
in China.
Westpac Banking 1.33 2,854,764
Australian Bank with broad based U.S. exposure.
</TABLE>
<PAGE>
PAGE 18
Your fund's long-term performance
Worldwide Growth Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's stock dividends, interest and
short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Worldwide Growth Fund
Average annual total return*
(as of Mar. 31, 1994)
Since
1 year 5 years 4/1/87
+15.1% +4.3% +1.2%
$12,720
Worldwide Growth Fund
Lipper
International Fund Index
Morgan Stanley Capital
International World Index
$10,000
11/1/90** 3/31/91 3/31/92 3/31/93 3/31/94
Assumes: Holding period from 11/1/90 to 3/31/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $66.
The Morgan Stanley Capital International World Index (World Index),
compiled from a composite of over 1,500 companies listed on the
stock exchanges of North America, Europe, Australia, New Zeland and
the Far East, is widely recognized by investors as the measurement
index for portfolios of global securities.
<PAGE>
Lipper International Fund Index, published by Lipper Analytical
Services, Inc. includes 10 funds that are generally similar to the
fund, although some funds in the index may have somewhat different
investment policies or objectives.
On the chart above you can see how the fund's total return compared
to two widely cited performance indexes, the World Index and the
Lipper International Fund Index. In comparing Strategy Worldwide
Growth Fund to the two indexes, you should take into account the
fact that the fund's performance reflects the appropriate deferred
sales charge, while such charges are not reflected in the
performance of the indexes. If you were actually to buy either
individual stocks or growth mutual funds, any sales charges that
you pay would reduce your total return as well.
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
* The 1 and 5 year total return numbers reflect payment of the
applicable deferred sales charges.
** 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.
<PAGE>
PAGE 19
Making the most of your fund
Aggressive Equity Fund - average annual total return
(March 31, 1994)
1 year 5 years Since inception*
+0.09% +12.94% +15.17% with deferred sales charge**
+4.09 +13.17 +15.17 without sales charge
* Period from May 14, 1984 to March 31, 1994
Equity Fund - average annual total return
(March 31, 1994)
1 year 5 years Since inception*
+1.49% +11.02% +14.91% with deferred sales charge**
+5.50 +11.25 +14.91 without sales charge
* Period from May 14, 1984 to March 31, 1994
Income Fund - average annual total return
(March 31, 1994)
1 year 5 years Since inception*
+0.33% + 9.87% +11.27% with deferred sales charge**
+4.33 +10.09 +11.27 without sales charge
* Period from May 14, 1984 to March 31, 1994
Short-Term Income Fund - average annual total return
(March 31, 1994)
1 year 5 years Since 2/1/89*
- -2.74% +5.82% +6.18% with deferred sales charge**
+1.26 +6.03 +6.18 without sales charge
* From May 14, 1984 to Jan. 31, 1989, the fund operated as a money
market fund. On Feb. 1, 1989, it commenced operating as a short-
term income fund under its new goal and name.
Worldwide Growth Fund - average annual total return
(March 31, 1994)
1 year 5 years Since inception*
+15.07% +4.32% +1.20% with deferred sales charge**
+19.08 +4.53 +1.20 without sales charge
* Period from April 1, 1987 to March 31, 1994
<PAGE>
** Returns incorporate the impact of a deferred sales charge
assuming redemption at the end of the stated periods above.
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
<PAGE>
PAGE 20
Build your assets systematically
To keep your assets growing steadily, one of the best ways to
invest in the fund is by dollar-cost averaging -- a time-tested
strategy that can make market fluctuations work for you. To
dollar-cost average, simply invest a fixed amount of money
regularly. You'll automatically buy more shares when the fund's
share price is low, fewer shares when it is high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.58
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low
(arrow in table pointing to September) and fewer shares when the
per share market price is high.
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
<PAGE>
PAGE 21
Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS Strategy Fund, Inc.:
We have audited the accompanying statements of assets and
liabilities, including the schedules of investments in securities,
of the Aggressive Equity, Equity, Income, Short-Term Income and
Worldwide Growth Funds within IDS Strategy Fund, Inc. as of March
31, 1994, and the related statements of operations for the year
then ended and the statements of changes in net assets for each of
the years in the two-year period ended March 31, 1994, and the
financial highlights for each of the years in the nine-year period
ended March 31, 1994 (each of the years in the seven-year period
ended March 31, 1994, for Worldwide Growth Fund), and the period
from May 14, 1984 (commencement of operations), to March 31, 1985,
for all Funds except Worldwide Growth Fund. These financial
statements and the financial highlights are the responsibility of
fund management. Our responsibility is to express an opinion on
these financial statements and the financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and
sold but not received or delivered and securities on loan, we
request confirmations from brokers, and where replies are not
received, we carry out other appropriate auditing procedures. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of the
Aggressive Equity, Equity, Income, Short-Term Income and Worldwide
Growth Funds of IDS Strategy Fund, Inc. at March 31, 1994, and the
results of their operations for the year then ended and the changes
in their net assets for each of the years in the two-year period
ended March 31, 1994, and the financial highlights for the periods
stated in the first paragraph above, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick
Minneapolis, Minnesota
May 6, 1994
<PAGE>
PAGE 22
<TABLE>
<CAPTION>
Financial statements
Statements of assets and liabilities
IDS Strategy Fund, Inc.
March 31, 1994
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
Aggressive
Equity Equity Income
Fund Fund Fund
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Investments in securities, at value (Note 1)
(identified cost $529,039,067, $1,020,591,684 and $737,660,476) $637,827,911 $1,039,795,889 $735,904,405
Cash in bank on demand deposit 6,252,816 4,404,581 --
Dividends and accrued interest receivable 124,433 4,536,007 13,446,189
Receivable for investment securities sold 18,005,392 17,474,595 14,034,132
Receivable for foreign currency contracts held, at value
(Notes 1 and 8) -- 8,056,998 --
U.S. government securities held as collateral (Note 6) -- 8,053,880 15,593,553
_____________________________________________________________________________________________________________________________
Total assets 662,210,552 1,082,321,950 778,978,279
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit -- -- 1,617,016
Dividends payable to shareholders -- 51,592 1,007,871
Payable for foreign currency contracts held, at value
(Notes 1 and 8) -- 8,231,673 --
Payable for investment securities purchased 8,770,471 14,151,632 6,293,826
Payable upon return of securities loaned (Note 6) -- 26,890,280 17,553,553
Accrued investment management and services fee 367,254 481,747 343,537
Accrued 12b-1 fee 409,749 651,348 548,756
Accrued transfer agency fee 157,122 196,317 112,163
Other accrued expenses 253,720 349,553 217,271
_____________________________________________________________________________________________________________________________
Total liabilities 9,958,316 51,004,142 27,693,993
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $652,252,236 $1,031,317,808 $751,284,286
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 45,323,834, 112,526,528 and 120,617,506 shares $ 453,238 $ 1,125,265 $ 1,206,175
Additional paid-in capital 535,221,625 968,845,073 737,332,680
Undistributed net investment income -- 1,360,998 371,691
Accumulated net realized gain (Notes 1 and 10) 7,788,529 40,956,942 14,367,311
Unrealized appreciation (depreciation) (Notes 7 and 8) 108,788,844 19,029,530 (1,993,571)
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding
capital stock $652,252,236 $1,031,317,808 $751,284,286
_____________________________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 14.39 $ 9.17 $ 6.23
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 23
<TABLE>
<CAPTION>
Financial statements
Statements of assets and liabilities
IDS Strategy Fund, Inc.
March 31, 1994
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
Short-Term Worldwide
Income Growth
Fund Fund
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Investments in securities, at value (Note 1)
(identified cost $191,584,151 and $198,443,206) $189,556,346 $211,061,718
Cash in bank on demand deposit (including foreign currency holdings of $0 and $981,004) 709,134 3,406,482
Dividends and accrued interest receivable 1,456,928 868,315
Receivable for investment securities sold -- 10,290,824
Receivable for foreign currency contracts held, at value (Notes 1 and 8) -- 21,879,771
_____________________________________________________________________________________________________________________________
Total assets 191,722,408 247,507,110
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Dividends payable to shareholders 107,765 --
Payable for foreign currency contracts held, at value (Notes 1 and 8) -- 21,973,631
Payable for investment securities purchased -- 7,695,143
Payable upon return of securities loaned (Note 6) -- 1,965,000
Accrued investment management and services fee 83,225 154,079
Accrued 12b-1 fee 135,008 147,864
Accrued transfer agency fee 30,620 62,636
Other accrued expenses 94,840 188,453
_____________________________________________________________________________________________________________________________
Total liabilities 451,458 32,186,806
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $191,270,950 $215,320,304
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 192,181,825 and 40,101,361 shares $ 1,921,818 $ 401,014
Additional paid-in capital 191,209,229 207,273,076
Undistributed net investment income 44,803 --
Accumulated net realized gain (loss) (Notes 1 and 10) 122,905 (4,878,438)
Unrealized appreciation (depreciation) (Note 8) (2,027,805) 12,524,652
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $191,270,950 $215,320,304
_____________________________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 1.00 $ 5.37
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 24
<TABLE>
<CAPTION>
Financial statements
Statements of operations
IDS Strategy Fund, Inc.
Year ended March 31, 1994
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
Aggressive
Equity Equity Income
Fund Fund Fund
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Income:
Dividends (net of foreign taxes withheld of $27,827, $729,612
and $0) $ 2,725,608 $26,712,364 $ 991,601
Interest (net of foreign taxes withheld of $0, $29,669 and $0) (Note 1) 1,820,391 5,227,226 55,838,169
_____________________________________________________________________________________________________________________________
Total income 4,545,999 31,939,590 56,829,770
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 3,959,394 4,938,986 3,774,421
12b-1 fee 4,455,232 6,464,137 5,870,906
Transfer agency fee 1,796,377 2,116,737 1,249,460
Compensation of directors 15,776 16,991 13,870
Compensation of officers 6,920 10,508 7,650
Custodian fees 88,903 166,106 66,378
Postage 258,150 300,162 170,949
Registration fees 62,897 144,228 128,272
Reports to shareholders 80,935 92,596 51,664
Audit fees 17,500 17,000 18,000
Administrative 9,073 14,695 10,290
Other 14,676 23,027 15,759
_____________________________________________________________________________________________________________________________
Total expenses 10,765,833 14,305,173 11,377,619
_____________________________________________________________________________________________________________________________
Investment income (loss) -- net (6,219,834) 17,634,417 45,452,151
_____________________________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including gain of $92, $250,049 and $16,101 from
foreign currency transactions) (Note 3) 41,329,221 81,083,334 26,309,082
Net realized loss on closed financial futures contracts -- -- (485,450)
Net realized gain on closed options contracts written (Note 5) 249,927 -- --
_____________________________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 41,579,148 81,083,334 25,823,632
Net change in unrealized appreciation or depreciation (12,150,355) (57,859,852) (46,913,616)
_____________________________________________________________________________________________________________________________
Net gain (loss) on investments and foreign currency 29,428,793 23,223,482 (21,089,984)
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations $23,208,959 $40,857,899 $24,362,167
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 25
<TABLE>
<CAPTION>
Financial statements
Statements of operations
IDS Strategy Fund, Inc.
Year ended March 31, 1994
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
Short-Term Worldwide
Income Growth
Fund Fund
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Income:
Dividends (net of foreign taxes withheld of $236,111) $ -- $ 2,182,765
Interest (Note 1) 10,422,882 392,842
_____________________________________________________________________________________________________________________________
Total income 10,422,882 2,575,607
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 943,248 1,039,144
12b-1 fee 1,551,273 998,381
Transfer agency fee 377,243 481,828
Compensation of directors 7,475 9,799
Compensation of officers 3,023 970
Custodian fees 24,606 214,031
Postage 84,644 85,366
Registration fees 57,280 79,312
Reports to shareholders 21,959 20,196
Audit fees 13,000 15,500
Administrative 2,439 1,892
Other -- 14,920
_____________________________________________________________________________________________________________________________
Total expenses 3,086,190 2,961,339
_____________________________________________________________________________________________________________________________
Investment income (loss) -- net 7,336,692 (385,732)
_____________________________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(net of foreign taxes withheld of $57,227 and including gain of $9,483
from foreign currency transactions on Worldwide Growth Fund) (Note 3) 845,891 6,245,625
Net change in unrealized appreciation or depreciation (6,042,618) 7,260,496
_____________________________________________________________________________________________________________________________
Net gain (loss) on investments and foreign currency (5,196,727) 13,506,121
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations $ 2,139,965 $13,120,389
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 26
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Strategy Fund, Inc.
Year ended March 31,
_____________________________________________________________________________________________________________________________
Operations and distributions 1994 1993 1994 1993
_____________________________________________________________________________________________________________________________
Aggressive Equity Equity
Fund Fund
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Investment income (loss) -- net $ (6,219,834) $ (4,163,848) $ 17,634,417 $ 12,952,134
Net realized gain on investments
and foreign currency 41,579,148 29,295,121 81,083,334 48,334,196
Net change in unrealized appreciation or
depreciation (12,150,355) (7,837,538) (57,859,852) 33,309,097
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting
from operations 23,208,959 17,293,735 40,857,899 94,595,427
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income -- -- (16,824,052) (12,695,609)
Net realized gain on investments (57,232,536) (26,095,639) (64,484,810) (41,805,941)
Excess distribution of realized gain (Note 1) (92) -- (251,175) (452,958)
_____________________________________________________________________________________________________________________________
Total distributions (57,232,628) (26,095,639) (81,560,037) (54,954,508)
_____________________________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales or transfers from other funds 169,955,924 169,004,413 322,046,101 227,893,957
Reinvestment of distributions at net asset value 57,007,903 25,987,788 80,767,882 54,422,128
Payments for redemptions or transfers to other
funds (Note 2) (122,745,185) (77,181,214) (89,266,723) (60,309,323)
_____________________________________________________________________________________________________________________________
Increase in net assets from
capital share transactions 104,218,642 117,810,987 313,547,260 222,006,762
_____________________________________________________________________________________________________________________________
Total increase in net assets 70,194,973 109,009,083 272,845,122 261,647,681
_____________________________________________________________________________________________________________________________
Net assets at beginning of year 582,057,263 473,048,180 758,472,686 496,825,005
_____________________________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income
of $0 and $0, $1,360,998 and $537,031) $652,252,236 $582,057,263 $1,031,317,808 $758,472,686
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 27
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Strategy Fund, Inc.
Year ended March 31,
_____________________________________________________________________________________________________________________________
Operations and distributions 1994 1993 1994 1993
_____________________________________________________________________________________________________________________________
Income Short-Term Income
Fund Fund
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Investment income -- net $ 45,452,151 $ 33,897,593 $ 7,336,692 $ 7,687,700
Net realized gain on investments
and foreign currency 25,823,632 3,597,584 845,891 554,879
Net change in unrealized appreciation or
depreciation (46,913,616) 31,597,281 (6,042,618) 1,809,639
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations 24,362,167 69,092,458 2,139,965 10,052,218
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (45,573,627) (33,849,058) (7,385,954) (7,668,737)
Net realized gain on investments (8,394,602) -- (677,373) (460,620)
Excess distribution of realized gains (Note 1) -- (169,503) -- --
_____________________________________________________________________________________________________________________________
Total distributions (53,968,229) (34,018,561) (8,063,327) (8,129,357)
_____________________________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales or transfers from other funds 382,357,534 260,293,243 218,094,276 147,023,386
Reinvestment of distributions at net asset value 48,115,538 30,099,391 7,670,363 7,726,027
Payments for redemptions or transfers to other
funds (Note 2) (229,945,785) (112,327,555) (205,406,418) (134,825,015)
_____________________________________________________________________________________________________________________________
Increase in net assets from
capital share transactions 200,527,287 178,065,079 20,358,221 19,924,398
_____________________________________________________________________________________________________________________________
Total increase in net assets 170,921,225 213,138,976 14,434,859 21,847,259
_____________________________________________________________________________________________________________________________
Net assets at beginning of year 580,363,061 367,224,085 176,836,091 154,988,832
_____________________________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income
of $371,691 and $897,397, $44,803 and $127,781) $751,284,286 $580,363,061 $191,270,950 $176,836,091
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 28
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Strategy Fund, Inc.
Year ended March 31,
_____________________________________________________________________________________________________________________________
Operations and distributions 1994 1993
_____________________________________________________________________________________________________________________________
Worldwide Growth
Fund
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Investment loss -- net $ (385,732) $ (366,557)
Net realized gain (loss) on investments and foreign currency 6,245,625 (3,402,949)
Net change in unrealized appreciation or depreciation 7,260,496 6,384,977
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations 13,120,389 2,615,471
_____________________________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales or transfers from other funds 166,514,051 20,334,356
Payments for redemptions or transfers to other funds (Note 2) (15,761,295) (10,739,076)
_____________________________________________________________________________________________________________________________
Increase in net assets from capital share transactions 150,752,756 9,595,280
_____________________________________________________________________________________________________________________________
Total increase in net assets 163,873,145 12,210,751
_____________________________________________________________________________________________________________________________
Net assets at beginning of year 51,447,159 39,236,408
_____________________________________________________________________________________________________________________________
Net assets at end of year $215,320,304 $51,447,159
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 29
Notes to financial statements
IDS Strategy Fund, Inc.
___________________________________________________________________
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.
<PAGE>
PAGE 30
Notes to financial statements
IDS Strategy Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies (continued)
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
forward foreign currency contracts
Securities and other assets and liabilities denominated in foreign
currencies are translated daily into U.S. dollars at the closing
rate of exchange. Foreign currency amounts related to the purchase
or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. It is not practicable to
identify that portion of realized and unrealized gain (loss)
arising from changes in the exchange rates from the portion arising
from changes in the market value of investments.
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-isssued 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.
<PAGE>
PAGE 31
Notes to financial statements
IDS Strategy Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies (continued)
During the fiscal year ended March 31, 1994, Income and Short-Term
Income Funds 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 fiscal
year ended March 31, 1994, such fees earned by the funds amounted
to $143,336 and $138,359 for Income and Short-Term Income funds,
respectively. 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.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, net investment income has been
increased (decreased) by $6,219,834, $13,602, $(404,230),
$(33,716), and $385,732 and accumulated net realized gain (loss)
has been increased (reduced) by $11,812, $0, $404,230, $33,716 and
$(18,945) resulting in a net reclassification adjustment to
decrease paid in capital by $6,231,646, $13,602, $0, $0 and
$366,787 for Aggressive Equity, Equity, Income, Short-Term Income
and Worldwide Growth Funds, respectively.
<PAGE>
PAGE 32
Notes to financial statements
IDS Strategy Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies (continued)
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.
<PAGE>
PAGE 33
Notes to financial statements
IDS Strategy Fund, Inc.
___________________________________________________________________
2. Expenses and sales charges (continued)
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 year ended March 31,
1994, aggregated $1,960,787: $544,083 for Aggressive Equity,
$551,640 for Equity, $566,372 for Income, $218,685 for Short-Term
Income and $80,007 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 year ended March 31, 1994, aggregated
$31,804: $7,467 for Aggressive Equity, $9,078 for Equity, $8,709
for Income, $2,273 for Short-Term Income and $4,277 for Worldwide
Growth Funds.
___________________________________________________________________
3. Securities transactions
For the year ended March 31, 1994, cost of purchases and proceeds
from sales (other than short-term obligations) aggregated
$402,523,222 and $308,243,362 for Aggressive Equity, $757,911,560
and $569,377,155 for Equity, $539,093,736 and $415,788,079 for
Income, $95,454,088 and $126,631,148 for Short-Term Income and
$197,874,671 and $65,480,275 for Worldwide Growth Funds. Realized
gains and losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with IDS were
$43,531 for Aggressive Equity and $169,426 for Equity Fund for the
year ended March 31, 1994.
<PAGE>
PAGE 34
Notes to financial statements
IDS Strategy Fund, Inc.
___________________________________________________________________
4. Capital share transactions
Transactions in shares of each fund for the years indicated are as
follows:
<TABLE>
<CAPTION>
Number of shares:
________________________________________________________________________________________________________________________
Aggressive Equity Fund Equity Fund Income Fund
_____________________________ ______________________________ ______________________________
Year ended March 31, Year ended March 31, Year ended March 31,
1994 1993 1994 1993 1994 1993
________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Sold or transferred
from other funds 11,014,310 11,172,515 33,138,214 24,815,396 58,097,430 41,915,779
Issued for reinvested
distributions 3,765,876 1,692,133 8,433,793 6,084,329 7,354,593 4,813,601
Redeemed or transferred
to other funds (7,951,989) (5,150,347) (9,197,496) (6,569,392) (35,064,814) (18,112,071)
________________________________________________________________________________________________________________________
Net increase 6,828,197 7,714,301 32,374,511 24,330,333 30,387,209 28,617,309
________________________________________________________________________________________________________________________
Number of shares:
________________________________________________________________________________________________________________________
Short-Term Income Fund Worldwide Growth Fund
______________________________ ______________________________
Year ended March 31, Year ended March 31,
1994 1993 1994 1993
________________________________________________________________________________________________________________________
Sold or transferred from other funds 213,765,797 142,974,696 31,676,228 4,755,126
Issued for reinvested distributions 7,523,292 7,516,322 -- --
Redeemed or transferred to other funds (201,051,396) (131,159,992) (2,983,522) (2,504,504)
________________________________________________________________________________________________________________________
Net increase 20,237,693 19,331,026 28,692,706 2,250,622
________________________________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 35
Notes to financial statements
IDS Strategy Fund, Inc.
___________________________________________________________________
5. Options contracts written
The number of contracts and premium amounts associated with call
options contracts written in Aggressive Equity Fund is as follows:
Year ended
March 31, 1994
_______________________
Contracts Premium
_____________________________________________________
Balance March 31, 1993 -- $ --
Opened 2,450 610,039
Closed (2,450) (610,039)
_____________________________________________________
Balance March 31, 1994 -- $ --
_____________________________________________________
___________________________________________________________________
6. Lending of fund securities
At March 31, 1994, securities valued at $26,225,274 for Equity,
$16,977,700 for Income and $1,828,950 for Worldwide Growth were on
loan to brokers. For collateral, Equity received $18,836,400 in
cash and U.S. government securities valued at $8,053,880, Income
received $1,960,000 in cash and U.S. government securities valued
at $15,593,553, and Worldwide Growth received $1,965,000 in cash.
Income from securities lending amounted to $7,884, $91,955, $50,535
and $26,676 for Aggressive Equity, Equity, Income and Worldwide
Growth Funds, respectively, for the year ended March 31, 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 March 31, 1994, investments in securities in Income Fund
included securities valued at $579,037 that were pledged as
collateral to cover initial margin deposits on 50 purchase
contracts. The market value of the open contracts at March 31,
1994, was $4,567,188 with a net unrealized loss of $237,500.
___________________________________________________________________
8. Foreign currency contracts
At March 31, 1994, Equity and Worldwide Growth Funds had entered
into foreign currency exchange contracts that obligate the fund to
deliver currencies at specified future dates. The unrealized
depreciation of $174,675 and $93,860, respectively, on these
contracts are included in the accompanying financial statements.
The terms of the open contracts are as follows:
<PAGE>
PAGE 36
Notes to financial statements
IDS Strategy Fund, Inc.
___________________________________________________________________
8. Foreign currency contracts (continued)
<TABLE>
<CAPTION>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered March 31, 1994 received March 31, 1994
______________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Equity April 6, 1994 2,576 $ 1,806 1,807 $ 1,807
Australian Dollar U.S. Dollar
April 15, 1994 25,965 25,965 45,600 25,652
U.S. Dollar New Zealand Dollar
April 25, 1994 13,700,000 8,203,902 8,029,539 8,029,539
Deutsche Mark U.S. Dollar
__________ __________
$8,231,673 $8,056,998
______________________________________________________________________________________________________________________________
Worldwide April 5, 1994 1,544,561 $2,299,079 2,288,538 $2,288,538
Growth British Pound U.S. Dollar
April 5, 1994 1,059,657 1,577,300 1,582,624 1,582,624
British Pound U.S. Dollar
April 5, 1994 808,632 1,203,648 1,209,713 1,209,713
British Pound U.S. Dollar
April 5, 1994 539,994 803,781 808,344 808,344
British Pound U.S. Dollar
April 5, 1994 329,039 489,774 488,688 488,688
British Pound U.S. Dollar
</TABLE>
<PAGE>
PAGE 37
<TABLE>
<CAPTION>
Notes to financial statements
IDS Strategy Fund, Inc.
______________________________________________________________________________________________________________________________
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered March 31, 1994 received March 31, 1994
______________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Worldwide Growth April 5, 1994 191,748 $ 285,417 285,992 $285,992
(continued) British Pound U.S. Dollar
April 5, 1994 1,132 1,685 1,694 1,694
British Pound U.S. Dollar
April 5, 1994 93,643,691 914,713 912,022 912,022
Japanese Yen U.S. Dollar
April 5, 1994 135,966,178 1,000,855 988,989 988,989
Spanish Peseta U.S. Dollar
April 5, 1994 274,842 2,023 1,999 1,999
Spanish Peseta U.S. Dollar
April 5, 1994 671,249 671,249 451,487 672,039
U.S. Dollar British Pound
April 5, 1994 477,901 477,901 320,933 477,709
U.S. Dollar British Pound
April 5, 1994 260,306 260,306 2,057,849 263,166
U.S. Dollar Swedish Krona
April 6, 1994 398,438 3,892 3,880 3,880
Japanese Yen U.S. Dollar
April 6, 1994 211,205 211,205 1,655,849 211,756
U.S. Dollar Swedish Krona
April 6, 1994 91,191 91,191 128,710 90,258
U.S. Dollar Australian Dollar
April 7, 1994 756,705 756,705 1,078,603 756,371
U.S. Dollar Australian Dollar
</TABLE>
<PAGE>
PAGE 38
<TABLE>
<CAPTION>
Notes to financial statements
IDS Strategy Fund, Inc.
______________________________________________________________________________________________________________________________
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered March 31, 1994 received March 31, 1994
______________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Worldwide Growth April 8, 1994 23,856,819 $ 175,611 174,980 $ 174,980
(continued) Spanish Peseta U.S. Dollar
April 8, 1994 591,431 591,431 841,775 590,294
U.S. Dollar Australian Dollar
April 18, 1994 328,689 489,254 487,052 487,052
British Pound U.S. Dollar
April 28, 1994 954,268,900 9,329,749 9,245,000 9,245,000
Japanese Yen U.S. Dollar
April 29, 1994 14,637 2,568 2,561 2,561
French Franc U.S. Dollar
April 29, 1994 168,021 168,021 965,027 169,333
U.S. Dollar French Franc
April 29, 1994 166,273 166,273 950,418 166,769
U.S. Dollar French Franc
___________ ___________
$21,973,631 $21,879,771
</TABLE>
___________________________________________________________________
9. Illiquid securities
At March 31, 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 March 31, 1994, was $4,954,589 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.
___________________________________________________________________
10. Capital loss carryover
For federal income tax purposes, Worldwide Growth Fund had a
capital loss carryover of $4,862,260 at March 31, 1994, that, if
not offset by subsequent capital gains, will expire in 1998 through
2001. It is unlikely the board of directors will authorize a
distribution of any net realized capital gains until the available
capital loss carryover has been offset or expires.
___________________________________________________________________
11. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on pages 7-11 of the prospectus.
<PAGE>
PAGE 39
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Aggressive Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (87.4%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Airlines (2.7%)
Mesa Airlines 325,000 (b) $ 6,662,500
Southwest Airlines 330,000 10,807,500
____________
Total 17,470,000
_____________________________________________________________________________________________________________________________
Automotive & related (0.6%)
Ek Chor China Motorcycle 180,000 4,140,000
_____________________________________________________________________________________________________________________________
Banks and savings & loans (1.6%)
Bankcorp Hawaii 180,000 5,400,000
Mercantile Bancorp 110,000 5,266,250
_____________
Total 10,666,250
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.8%)
Celestial Seasonings 123,300 (b) 3,544,875
Cott
75,000 1,875,000
____________
Total 5,419,875
_____________________________________________________________________________________________________________________________
Communications equipment (5.3%)
ADC Telecommunications 118,300 (b) 4,524,975
Andrew 125,000 (b) 4,031,250
Cellular 100,000 (b) 4,450,000
Centigram Communications 105,000 (b) 3,570,000
Commnet Cellular 190,000 (b) 3,182,500
ECI Telecom 135,000 3,105,000
Newbridge Networks 155,000 (b) 8,466,875
Vanguard Cellular System 110,000 (b) 3,203,750
____________
Total 34,534,350
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 40
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Aggressive Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (cont'd)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Computers & office equipment (23.2%)
Acclaim Entertainment 130,000 (b) $ 2,047,500
Adobe Systems 90,000 2,182,500
Amer Mgmt Systems 180,000 (b) 3,532,500
Avid Technology 67,900 (b) 1,612,625
BMC Software 100,000 (b) 6,175,000
Chipcom 95,000 (b) 4,868,750
Cisco Systems 470,000 (b) 16,097,500
COMPAQ Computer 135,000 (b) 13,196,250
Compuware 26,400 (b) 1,112,100
Danka Business Systems 65,000 2,551,250
Electronic Arts 70,000 (b) 1,837,500
First Financial Management 160,300 8,656,200
IMRS 36,200 (b) 796,400
Informix 210,000 (b) 4,357,500
Lotus Development 100,000 (b) 7,050,000
Medaphis 1,900 (b) 63,175
Microsoft 80,000 (b) 6,780,000
NetFRAME Systems 175,000 (b) 2,625,000
Novell 123,500 (b) 2,238,438
Oracle Systems 450,000 (b) 14,456,250
Parametric Technology 320,000 (b) 8,800,000
Silicon Graphics 150,000 (b) 3,581,250
Software Toolworks 205,000 (b) 2,946,875
Storage Technology 115,000 (b) 3,737,500
Sun Microsystems 350,000 (b) 9,581,250
Sybase 210,000 (b) 9,450,000
Synopsys 150,000 (b) 6,562,500
Viewlogic Systems 175,000 (b) 4,484,375
____________
Total 151,380,188
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 41
<TABLE>
<CAPTION>
Investments in securities
IDS Stratgey Fund, Inc.
Aggressive Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (cont'd)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Electronics (5.4%)
Amtech 160,000 $ 2,800,000
Applied Material 190,000 (b) 8,455,000
Intel 110,000 7,425,000
Linear Technology 165,000 6,971,250
Sensormatic Electric 225,000 8,184,375
TriQuint Semiconductor 82,000 (b) 1,332,500
____________
Total 35,168,125
_____________________________________________________________________________________________________________________________
Energy (1.0%)
Enron Oil & Gas 85,000 3,633,750
HS Resources 140,000 (b) 2,905,000
____________
Total 6,538,750
_____________________________________________________________________________________________________________________________
Financial services (2.4%)
ADVANTA 110,000 3,217,500
Dean Witter 160,000 5,220,000
Paychex 60,000 2,152,500
Travelers (New) 150,000 5,268,750
____________
Total 15,858,750
_____________________________________________________________________________________________________________________________
Health care (10.6%)
Amgen 90,000 (b) 3,442,500
Biogen 48,000 (b) 1,668,000
Cardinal 40,000 1,840,000
Chiron 76,000 (b) 4,997,000
Forest Labs 215,000 (b) 9,218,125
Genentech 75,000 (b) 3,300,000
Gensia Pharmaceuticals 165,000 (b) 2,640,000
Haemonetics 250,000 (b) 4,968,750
Heart Technology 160,000 (b) 2,760,000
IDEXX Laboratories 80,000 (b) 2,160,000
IVAX 256,270 6,406,750
Medtronics 90,000 7,200,000
Pfizer 100,000 5,400,000
Sofamor/Danek Group 71,800 (b) 1,570,625
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 42
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Aggressive Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (cont'd)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Stryker 115,000 $ 3,162,500
Ventritex 170,000 (b) 3,612,500
Viagene 69,600 (b) 617,700
Zoll Medical 150,000 (b) 4,462,500
____________
Total 69,426,950
_____________________________________________________________________________________________________________________________
Health care services (0.7%)
United Healthcare 100,000 4,275,000
_____________________________________________________________________________________________________________________________
Household products (0.6%)
Valence Technology 274,000 (b) 3,836,000
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.8%)
Calgon Carbon 200,000 2,575,000
KENETECH 125,000 (b) 2,906,250
_____________
Total 5,481,250
_____________________________________________________________________________________________________________________________
Industrial transporation (0.9%)
Amer Freightways 66,000 (b) 1,303,500
Heartland Express 34,000 (b) 1,147,500
M.S. Carriers 140,000 (b) 3,150,000
____________
Total 5,601,000
_____________________________________________________________________________________________________________________________
Insurance (0.3%)
Equitable of Iowa 50,000 1,687,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 43
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Aggressive Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (cont'd)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Leisure time & entertainment (1.9%)
Bally Gaming Intl 150,000 (b) $ 2,343,750
Intl Game Technology 135,000 3,661,875
President Riverboat Casinos 160,000 (b) 2,680,000
Rio Hotel & Casino 150,000 (b) 2,156,250
Savoy Pictures Entertainment 112,000 (b) 1,638,000
____________
Total 12,479,875
_____________________________________________________________________________________________________________________________
Media (2.9%)
Comcast 170,000 3,081,250
Comcast Cl A 85,000 1,498,125
Information Resources 193,800 (b) 3,294,600
Multimedia 158,400 (b) 4,712,400
Tele-Communications Cl A 180,000 (b) 3,735,000
Viacom 100,000 (b) 2,650,000
____________
Total 18,971,375
_____________________________________________________________________________________________________________________________
Metals (0.2%)
Molten Metal Technology 65,000 (b) 1,340,625
_____________________________________________________________________________________________________________________________
Restaurants & lodging (4.3%)
Brinker Intl 360,000 (b) 10,350,000
Buffets 300,000 (b) 6,525,000
Cracker Barrel Old Country 220,000 5,885,000
Shoney's 257,800 5,446,025
____________
Total 28,206,025
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 44
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Aggressive Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (cont'd)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Retail (11.9%)
Consolidated Stores 170,000 (b) $ 2,932,500
CUC Intl 135,000 (b) 4,252,500
Gap 120,000 5,325,000
Home Depot 150,000 6,112,500
Home Shopping Network 110,000 (b) 1,416,250
Kohls 170,000 (b) 8,287,500
Lowe's 260,000 16,770,000
Men's Warehouse 75,000 (b) 2,137,500
Musicland Stores 200,000 (b) 3,900,000
Office Depot 110,000 (b) 3,836,250
Phillips-Van Heusen 250,000 8,718,750
Price/Costco 260,000 (b) 4,712,500
Wal-Mart Stores 350,000 9,056,250
_____________
Total 77,457,500
_____________________________________________________________________________________________________________________________
Utilities-gas (0.7%)
Enron 140,000 4,270,000
_____________________________________________________________________________________________________________________________
Utilities-telephone (1.7%)
ALC Communications 227,900 (b) 7,577,675
McCaw Cellular 75,000 (b) 3,712,500
____________
Total 11,290,175
_____________________________________________________________________________________________________________________________
Foreign (6.9%)(c)
Cifra ADR Series B 2,400,000 6,818,400
Grupo Televisa 30,000 (d) 1,530,000
Hutchison Whampoa 3,550,000 14,469,800
Renaissance Energy 130,000 (b) 2,607,046
Renaissance Energy 38,800 (b,d) 778,103
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 45
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Aggressive Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (cont'd)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Tarragon Oil & Gas 170,000 (b) $ 1,981,030
Telefonos de Mexico ADR 110,000 6,627,500
Television Broadcast 1,200,000 4,238,400
Vodafone Group ADR 75,000 5,803,125
____________
Total 44,853,404
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $463,864,225) $570,352,967
_____________________________________________________________________________________________________________________________
Preferred stocks & other (1.3%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Centocor
Warrants 48,500 $ 315,250
Gensia Pharmaceuticals
$3.75 Cv 60,000 (d) 2,535,000
Jan Bell
Warrants 2,473 (e) --
SAP
Preferred 3,550 5,426,832
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $5,903,612) $ 8,277,082
_____________________________________________________________________________________________________________________________
Bond (0.6%)
_____________________________________________________________________________________________________________________________
Issuer and Principal Value(a)
coupon rate amount
_____________________________________________________________________________________________________________________________
Ciba Geigy/Alza
6.25% Cv 2016 $4,000,000 (d) $ 4,100,000
_____________________________________________________________________________________________________________________________
Total bond
(Cost: $4,173,368) $ 4,100,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 46
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Aggressive Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (8.4%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (0.9%)
Federal Home Loan Bank Disc Nt
04-14-94 3.42% $ 600,000 $ 599,261
Federal Natl Mtge Assn
Disc Nts
04-18-94 3.44 3,500,000 3,494,331
04-25-94
3.51 1,900,000 1,895,567
_____________
Total 5,989,159
_____________________________________________________________________________________________________________________________
Commerical paper (6.9%)
AIG Funding
05-02-94 3.59 5,400,000 5,383,353
AT&T Capital
04-05-94 3.37 1,700,000 1,699,365
Ciesco LP
04-18-94 3.53 2,300,000 2,296,177
Eiger Capital
04-19-94 3.53 4,400,000 (f) 4,392,256
05-02-94 3.62 2,500,000 (f) 2,492,228
Morgan Stanley Group
04-05-94 3.47 1,000,000 999,617
04-26-94 3.54 3,800,000 3,790,685
Pitney Bowes Credit
04-08-94 3.48 1,000,000 999,325
04-21-94 3.52 3,800,000 3,792,590
St. Paul Companies
04-06-94 3.47 2,300,000 2,298,895
Sara Lee
04-04-94 3.46 3,800,000 3,798,908
Sysco
04-08-94 3.45 2,000,000 (f) 1,998,662
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 47
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Aggressive Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (cont'd)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Commercial paper (cont'd)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Toyota Motor Credit
04-22-94 3.61% $5,000,000 $ 4,989,500
USAA Capital
05-03-94 3.61 3,200,000 3,189,760
05-04-94 3.61 2,300,000 2,292,410
05-05-94 3.61 800,000 797,280
___________
Total 45,211,011
_____________________________________________________________________________________________________________________________
Letter of credit (0.6%)
_____________________________________________________________________________________________________________________________
Bank of New York-
River Fuel
04-07-94 3.56% 3,900,000 (f) $ 3,897,692
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $55,097,862) $ 55,097,862
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $529,039,067)(g) $637,827,911
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 48
Investments in securities
IDS Strategy Fund, Inc.
Aggressive Equity Fund
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 March 31, 1994, the cost of securities for federal income tax purposes was
$529,151,730 and the aggregate gross unrealized appreciation and depreciation
based on that cost was:
Unrealized appreciation $147,642,300
Unrealized depreciation (38,966,119)
___________________________________________________________________________________________
Net unrealized appreciation $108,676,181
___________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 49
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (83.5%)
(Percentages represent value of investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Aerospace & defense (1.4%)
Boeing 124,100 $ 5,568,987
Raytheon 140,000 9,047,500
____________
Total 14,616,487
_____________________________________________________________________________________________________________________________
Automotive & related (1.4%)
Ford Motor 68,000 (b) 3,995,000
General Motors 200,000 10,800,000
____________
Total 14,795,000
_____________________________________________________________________________________________________________________________
Banks and savings & loans (4.9%)
Ahmanson (HF) 250,000 4,218,750
BankAmerica 225,000 8,859,375
BB&T Financial 150,000 4,368,750
First Chicago 160,000 7,680,000
Great Western Financial 250,000 4,000,000
Mercantile Bancorp 150,000 7,181,250
NationsBank 162,000 7,411,500
PNC Bank 275,000 7,321,875
____________
Total 51,041,500
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.8%)
Amer Brands 275,000 (b) 8,318,750
_____________________________________________________________________________________________________________________________
Building materials (1.6%)
Masco 325,000 10,237,500
Potlatch 150,000 6,281,250
____________
Total 16,518,750
_____________________________________________________________________________________________________________________________
Computers and office equipment (1.9%)
Pitney Bowes 200,000 8,125,000
SCI Systems 100,100 (c) 1,601,600
Xerox 100,000 9,550,000
____________
Total 19,276,600
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 50
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Chemicals (4.3%)
ARCO Chemical 212,500 $ 9,429,687
Dow Chemical 175,000 10,521,875
Ecolab 320,000 6,560,000
Ethyl 629,800 7,636,325
Great Lakes Chemical 75,000 5,287,500
Wellman 240,000 4,950,000
___________
Total 44,385,387
_____________________________________________________________________________________________________________________________
Energy (4.3%)
Amoco 175,000 9,296,875
General Atlantic 98,000 (c) 1,494,500
Mobil 125,000 9,296,875
Occidental Petroleum 400,000 6,450,000
Texaco 140,000 8,820,000
Total 350,000 9,143,750
____________
Total 44,502,000
_____________________________________________________________________________________________________________________________
Financial services (7.4%)
ADVANTA Cl B 117,200 3,428,100
Avalon Properties 245,000 5,390,000
Beneficial 200,000 7,325,000
Bradley Real Estate Trust 220,000 1,925,000
Crown Amer 485,200 6,671,500
Federal Natl Mtge 110,000 8,552,500
Haagan (Alexander) Properties 300,000 5,175,000
Holly Residential 100,000 1,725,000
Household Intl 200,000 5,925,000
IRT Property 290,000 3,008,750
Kimco Realty 110,000 3,946,250
Kranzco Realty Trust 225,000 4,781,250
MBNA 450,000 9,506,250
Student Loan Marketing Assn 200,000 8,625,000
____________
Total 75,984,600
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 51
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Food (0.8%)
Hormel (George A) 425,000 $ 8,181,250
_____________________________________________________________________________________________________________________________
Furniture & appliances (1.1%)
Maytag 600,000 11,250,000
_____________________________________________________________________________________________________________________________
Health care (6.0%)
Amer Home Products 125,000 7,250,000
Beckman Instruments 200,000 5,125,000
Bergen Brunswig 171,800 2,877,650
Bristol-Meyers Squibb 150,000 7,743,750
Genzyme 175,000 (c) 4,681,250
Johnson & Johnson 185,000 6,983,750
Pfizer 150,000 8,100,000
Schering-Plough 125,000 7,031,250
SCI-Med Life Systems 150,000 (c) 5,212,500
SmithKline Beecham 260,000 6,500,000
____________
Total 61,505,150
_____________________________________________________________________________________________________________________________
Household products (1.7%)
Natl Presto 75,000 3,337,500
Procter & Gamble 175,000 9,384,375
Scotts Cl A 260,000 (c) 5,037,500
____________
Total 17,759,375
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.9%)
General Signal 270,000 8,910,000
_____________________________________________________________________________________________________________________________
Industrial transportation (1.5%)
Norfolk Southern 125,000 8,078,125
Union Pacific 125,000 7,093,750
____________
Total 15,171,875
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 52
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Insurance (5.0%)
Amer General 300,000 $ 8,287,500
Aon 175,000 8,400,000
Capital Holding 200,000 6,325,000
Enhance Financial Services 200,000 3,625,000
St. Paul Companies 110,000 8,552,500
Tempest Reinsurance 77,000 (c) 7,266,721
Travelers 241,269 8,474,574
____________
Total 50,931,295
_____________________________________________________________________________________________________________________________
Media (0.8%)
Dun & Bradstreet 150,000 8,812,500
_____________________________________________________________________________________________________________________________
Metals (3.2%)
Aluminum Co of Amer 110,000 7,878,750
Freeport-McMoRan 300,000 5,812,500
Freeport-McMoRan Copper & Gold 400,000 10,250,000
J&L Specialty Steel 350,000 4,812,500
Reynolds Metals 100,000 4,587,500
____________
Total 33,341,250
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (3.8%)
Emerson Electric 150,000 8,906,250
General Electric 100,000 9,962,500
ITT 110,000 9,432,500
Textron 200,000 10,800,000
____________
Total 39,101,250
_____________________________________________________________________________________________________________________________
Paper & packaging (2.5%)
Intl Paper 125,000 8,515,625
Longview Fibre 292,000 5,256,000
Rayonier 149,500 4,186,000
Union Camp 175,000 7,743,750
____________
Total 25,701,375
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 53
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Restaurants & lodging (1.5%)
McDonald's 200,000 $11,375,000
Ryan's Family Steak House 500,000 (c) 3,812,500
____________
Total 15,187,500
_____________________________________________________________________________________________________________________________
Retail (8.8%)
Carter Hawley Hale (New) 478,000 (b,c) 5,975,000
Dayton Hudson 125,000 9,125,000
Gibson Greetings 200,000 4,175,000
K mart 400,000 (b) 7,250,000
MacFrugals Bargains Closeouts 321,000 (c) 5,336,625
May Department Stores 175,000 7,284,375
Melville 150,000 5,718,750
Mercantile Stores 100,000 3,825,000
Meyer (Fred) 110,000 (c) 4,372,500
Musicland Stores 300,900 (c) 5,867,550
Nordstrom 250,000 9,937,500
Penney (JC) 150,000 7,931,250
Rite Aid 500,000 9,500,000
Yonkers 260,000 (c) 4,680,000
____________
Total 90,978,550
_____________________________________________________________________________________________________________________________
Textiles & apparel (0.8%)
Burlington Inds Equity 525,000 (c) 7,940,625
_____________________________________________________________________________________________________________________________
Utilities - telephone (1.4%)
Comsat 118,500 3,095,812
Pacific Telesis 225,000 11,840,625
____________
Total 14,936,437
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 54
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Foreign (15.7%)(d)
Anglovaal Inds 70,000 $ 2,535,050
Banco Central Hispanoamer 225,000 4,827,825
Barlow Rand 475,000 2,739,800
BASF 30,000 (b) 5,692,080
Bayar 25,000 (b,c) 5,620,150
BCE 119,400 4,313,325
Brierley Investments 7,843,200 5,247,101
Commerce Bancorp Aust 672,000 3,925,152
Compagnie Financiere de Paribas 50,000 3,820,846
Compagnie St Gobain 60,000 6,843,300
Credit Local 100,000 7,399,500
DeBeers Cons Mines ADR 250,000 5,218,750
Enterprise Oil ADR 360,464 6,488,352
Grupo Tribasa 130,000 3,331,250
Hanson ADR 525,000 10,434,375
Iberdrola 950,000 6,943,550
Imperial Chemical ADR 20,000 917,500
Imperial Chemical Inds 661,000 7,762,784
Mayne Nickless 905,000 4,993,790
Murray & Roberts Holdings 185,000 2,973,505
Northumbrian Water 194,000 1,876,950
Repsol (SA) ADR 200,000 5,900,000
Royal Dutch Petroleum 110,000 10,931,250
Sceptre Resources 238,100 (c) 2,086,332
Stockland Trust 1,044,423 2,380,240
Telefonos de Mexico L ADR 100,000 6,025,000
Tesco 2,500,000 7,942,500
Tolmex 325,000 4,094,025
Welsh Water 408,900 3,974,508
Westfield Trust 3,516,945 6,313,620
YPF Sociedad Anonima ADR 350,000 8,312,500
____________
Total 161,864,910
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $839,178,487) $861,012,416
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 55
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
Bonds (1.7%)
_____________________________________________________________________________________________________________________________
Issuer and Principal
coupon rate amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Domestic (0.5%)
Carter Hawley Hale Stores
6.25% Cv 2000 $ 1,000,000 (f) $ 1,218,750
Delta Air Lines
3.23% Cv 2003 4,000,000 2,965,000
USF & G
4.50% Cv 2009 1,650,000 (g) 841,500
____________
Total 5,025,250
_____________________________________________________________________________________________________________________________
Foreign (1.2%) (d)
Amcor
(Australian Dollar)
6.50% Cv 2003 160,500,000 1,068,124
Banco de Santander
(Spanish Peseta)
9% Cv 1994 450,000,000 3,892,050
Escom
(South African Rand)
11% 2008 42,475,000 7,549,507
____________
Total 12,509,681
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $17,373,698) $17,534,931
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 56
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
Preferred stocks & other (2.4%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
AMR
$3 Cv 100,000 (f) $ 4,350,000
Delta Airlines
$3.50 Cm Cv 55,000 2,605,625
Compagnie Financiere de Paribas
Rights 50,000 17,547
SunAmerica
$2.78 Cv 174,600 (b) 6,940,350
UAL
$6.25 Cv 40,000 (f) 3,510,000
Unisys
$3.75 Cm Cv 167,000 7,055,750
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $27,266,852) $24,479,272
_____________________________________________________________________________________________________________________________
Short-term securities (13.2%)
_____________________________________________________________________________________________________________________________
Annualized Amount
yield on payable at
date of maturity
Issuer purchase Value(a)
_____________________________________________________________________________________________________________________________
U.S. government agency (0.2%)
Federal Natl Mtge Assn Disc Nts
04-25-94 3.43% $1,000,000 $ 997,720
04-25-94 3.51 500,000 498,834
04-27-94 3.50 1,300,000 1,296,723
____________
Total 2,793,277
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 57
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Annualized Amount
yield on payable at
date of maturity
Issuer purchase Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Commercial paper (13.0%)
Amer General
04-25-94 3.55% $5,000,000 $4,988,233
Ameritech
05-19-94 3.20 2,000,000 1,989,601
Amgen
04-15-94 3.56 6,300,000 6,291,302
AT&T Capital
04-25-94 3.60 5,300,000 5,287,351
Becton Dickinson
04-08-94 3.55 1,600,000 1,598,899
04-28-94 3.59 1,500,000 1,495,978
Clorox
04-04-94 3.46 5,800,000 5,798,333
Colgate Palmolive
04-04-94 3.56 1,600,000 (e) 1,599,527
Columbia Fuels
04-19-94 3.15 5,000,000 4,990,901
Commercial Credit
04-15-94 3.56 5,300,000 5,292,683
Consolidated Rail
04-28-94 3.62 5,000,000 (e) 4,986,500
Eiger Capital
04-22-94 3.57 5,800,000 (e) 5,787,955
General Electric Capital
04-11-94 3.56 8,000,000 7,992,111
Household Finance
04-21-94 3.55 5,000,000 4,990,194
04-28-94 3.63 4,500,000 4,487,783
Merrill Lynch
04-08-94 3.15 1,700,000 1,698,833
05-06-94 3.63 3,600,000 3,587,330
Morgan Stanley Group
04-05-94 3.47 1,100,000 1,099,578
Norfolk Southern
04-26-94 3.54 5,700,000 (e) 5,686,067
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 58
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Annualized Amount
yield on payable at
date of maturity
Issuer purchase Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Commercial paper (cont'd)
PepsiCo
04-13-94 3.51% $4,700,000 $ 4,694,517
04-22-94 3.62 3,000,000 2,993,700
Reed Publishing (USA)
04-14-94 3.53 4,300,000 (e) 4,294,534
04-18-94 3.53 5,400,000 (e) 5,391,024
St. Paul Companies
04-06-94 3.47 2,000,000 (e) 1,999,039
04-29-94 3.54 2,500,000 (e) 2,493,155
Scherering
04-29-94 3.61 3,400,000 3,390,480
Toyota Motor Credit
04-22-94 3.61 5,000,000 4,989,500
04-27-94 3.61 7,000,000 6,981,800
USAA Capital
04-20-94 3.57 3,800,000 3,792,880
05-03-94 3.61 5,100,000 5,083,680
05-04-94 3.61 5,750,000 5,731,025
05-05-94 3.61 2,500,000 2,491,500
____________
Total 133,975,993
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $136,772,647) $ 136,769,270
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,020,591,684)(h) $1,039,795,889
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 59
Investments in securities
IDS Strategy Fund, Inc.
Equity Fund
March 31, 1994
_____________________________________________________________________________________________________________________________
Investments in securities (continued)
_____________________________________________________________________________________________________________________________
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; 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 March 31, 1994, the cost of securities for federal income tax purposes was $1,020,639,744 and the
aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $73,654,205
Unrealized depreciation (54,498,060)
____________________________________________________________________________________________
Net unrealized appreciation
$19,156,145
____________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 60
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (84.4%)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
U.S. government obligations (7.6%)
U.S. Treasury 5.125% 1995 $10,000,000 $10,018,500
5.875 1995 15,000,000 (b) 15,197,847
6.375 1999 2,000,000 (c) 2,014,040
6.75 1997 10,000,000 10,292,699
Resolution Refunding Corp
Zero Coupon 8.54 1998 15,000,000 (d) 11,359,948
8.68 1999 6,500,000 (d) 4,743,764
8.70 1999 5,000,000 (d) 3,594,250
____________
Total 57,221,048
_____________________________________________________________________________________________________________________________
Mortgage-backed securities (3.8%)
Federal Home Loan Mtge Corp 6.50 1994-07 1,482,068 1,379,242
8.00 1994-17 1,811,409 1,826,693
Collateralized Mtge Obligation 7.55 2020 218,749 217,087
Inverse Floater 7.529 2023 5,000,000 (e) 2,350,000
Inverse Floater Collateralized Mtge Obligation 7.582 2000 1,850,081 (e) 1,665,072
Federal Natl Mtge Assn 6.50 1994-23 4,903,263 4,560,034
6.50 1994-24 11,947,890 11,111,538
Collateralized Mtge Obligation Series Z 6.00 2024 5,025,000 (f) 3,536,997
Govt Natl Mtge Assn 9.50 2020 787,285 836,982
Prudential Bache
Collateralized Mtge
Obligation Trust 7.965 2019 981,305 995,466
____________
Total 28,479,111
_____________________________________________________________________________________________________________________________
Financial (12.7%)
Banks and savings & loans (5.4%)
BankAmerica
Sub Nts 7.50 2002 3,000,000 3,007,500
Barclays NA Capital 9.75 2021 3,600,000 4,104,000
Citicorp
Sub Secured Nts 8.00 2003 4,000,000 4,125,000
Commercial Federal
Sub Nts 10.25 1999 4,000,000 3,990,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 61
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Continental Bank 7.875% 2003 $1,000,000 $ 1,021,250
12.50 2001 3,500,000 4,519,375
CoreStates Capital
Gtd Sub Nts 9.375 2003 4,300,000 4,853,625
First Chicago 8.875 2002 4,200,000 4,557,000
First Union
Sr Nts 8.875 2003 3,000,000 2,853,750
Fleet Norstar Finance
Sub Nts 9.00 2001 4,000,000 4,370,000
Society
Sub Nts 8.125 2002 3,000,000 3,116,250
____________
Total 40,517,750
_____________________________________________________________________________________________________________________________
Financial services (3.6%)
AmeriTech Capital Funding 9.10 2016 4,000,000 4,510,000
Corporate Property Investors 7.05 2003 2,000,000 (g) 1,902,500
7.18 2013 2,000,000 (g) 1,882,500
Exxon Capital
Gtd Nts 6.625 2002 5,000,000 4,893,750
General Electric Capital
Reset Nt 8.65 1996 1,285,000 (h) 1,362,100
Goldman Sachs Group LP 7.125 2003 4,000,000 (g) 3,915,000
GPA Delaware 8.75 1998 3,000,000 2,475,000
Kearny (RE) LP 7.70 2001 1,750,000 1,767,500
Property Trust Amer 7.50 2014 5,000,000 4,643,750
____________
Total 27,352,100
_____________________________________________________________________________________________________________________________
Insurance (3.7%)
Berkley (WR) 8.70 2022 3,000,000 3,172,500
General Amer Life 7.625 2024 3,000,000 (g) 2,771,250
Leucadia Natl
Cv 5.25 2003 2,600,000 2,561,000
Sr Nt 7.75 2013 4,000,000 3,750,000
Mass Mutual Life 7.625 2023 5,000,000 (g) 4,756,250
NAC Re
Cv Sub Deb 5.25 2002 1,000,000 (g) 927,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 62
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Nationwide Mutual 7.50% 2024 $4,000,000 (g) $ 3,700,000
New England Mutual
Credit Sensitive Nts 7.875 2024 5,000,000 (g) 4,606,250
Reliance Group Holdings
Sr Nts 9.00 2000 1,000,000 932,500
USF&G
Zero Coupon Cv Sub Nts 4.50 2009 1,200,000 (d) 612,000
____________
Total 27,789,250
_____________________________________________________________________________________________________________________________
Industrial (34.4%)
Aerospace & defense (0.5%)
Allison Engine Acquisition
Sr Sub Nts 10.00 2003 1,000,000 985,000
Fairchild Inds
Sr Sec Nts 12.25 1999 3,000,000 3,015,000
____________
Total 4,000,000
_____________________________________________________________________________________________________________________________
Airlines (1.6%)
Delta Air Lines 10.375 2011 5,500,000 5,795,625
United Air Lines 10.02 2014 3,000,000 3,150,660
10.25 2021 2,900,000 3,012,375
____________
Total 11,958,660
_____________________________________________________________________________________________________________________________
Automotive & related (1.9%)
Auburn Hills Trust
Gtd Exchangeable Certs 12.375 2020 2,000,000 2,860,000
Chrysler Financial 13.25 1999 290,000 375,912
Reset Nt 10.34 2008 3,000,000 (h) 3,255,000
Exide 10.75 2002 2,900,000 3,103,000
General Motors 9.40 2021 4,000,000 4,565,000
____________
Total 14,158,912
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.3%)
RJR Nabisco
SF Deb 8.375 2017 2,058,000 1,916,513
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 63
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Building materials (2.0%)
Baldwin 10.375% 2003 $3,250,000 $ 3,189,062
Nortek
Sr Sub Nts 9.875 2004 2,500,000 2,312,500
Owens-Corning Fiberglas 9.375 2012 2,000,000 2,147,500
Sherwin Williams
Gtd Deb 9.875 2016 2,000,000 2,217,500
SnyderGeneral
Sr Sub Deb 14.25 2000 3,000,000 3,153,750
USG
Sr Nts 8.00 1997 2,000,000 2,032,500
____________
Total 15,052,812
_____________________________________________________________________________________________________________________________
Chemicals (2.9%)
G-I Holdings
Sub Nts 11.37 1998 8,000,000 (g) 4,910,000
Goodrich (BF) 9.625 2001 3,000,000 3,258,750
Hanna (MA)
Sr Nts 9.375 2003 4,000,000 4,360,000
Praxair 8.70 2022 3,000,000 3,180,000
Sifto Canada
Sr Sub Nt 8.50 2000 3,000,000 2,880,000
Uniroyal Chemical
Sr Sub Nts 11.00 2003 3,000,000 3,120,000
____________
Total 21,708,750
_____________________________________________________________________________________________________________________________
Communications equipment (0.6%)
MFS Communications
Zero Coupon Sr Nt 9.34 1999 4,000,000 (d) 2,400,000
NEXTEL Communications
Zero Coupon Sr Nt 9.75 1999 4,000,000 (d) 2,400,000
____________
Total 4,800,000
_____________________________________________________________________________________________________________________________
Computers & office equipment (1.1%)
Anacomp 12.25 1997 3,000,000 (i) 3,135,000
Conner Peripheral
Cv 6.75 2001 2,000,000 1,750,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 64
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Convex Computer
Cv 6.00% 2012 $2,000,000 $ 1,425,000
Data General
SF Deb 8.375 2002 2,000,000 1,840,000
____________
Total 8,150,000
_____________________________________________________________________________________________________________________________
Electronics (0.3%)
Berg Electronics 11.375 2003 2,000,000 2,040,000
_____________________________________________________________________________________________________________________________
Energy (2.6%)
Cross Timbers Oil
Cv Sub Nts 5.25 2003 500,000 453,750
McDermott 9.375 2002 1,900,000 2,073,375
PDV Amer 7.875 2003 5,000,000 4,793,750
Questar Pipeline 9.375 2021 3,000,000 3,393,750
Texaco Capital
Gtd Deb 7.50 2043 3,000,000 2,835,000
USX 9.125 2013 3,000,000 3,045,000
9.375 2022 3,000,000 3,112,500
____________
Total 19,707,125
_____________________________________________________________________________________________________________________________
Energy equipment & services (0.4%)
Global Marine
Sr Secured Nts 12.75 1999 2,500,000 2,712,500
_____________________________________________________________________________________________________________________________
Food (0.2%)
Fresh Del Monte Produce 10.00 2003 2,000,000 1,847,500
_____________________________________________________________________________________________________________________________
Furniture & appliances (0.3%)
Sealy
Sr Sub Nts 9.50 2003 2,000,000 1,970,000
_____________________________________________________________________________________________________________________________
Health care services (1.6%)
Amer Medical Intl
SF Deb 11.25 2015 4,000,000 4,305,000
Foundation Health
Sr Nts 7.75 2003 3,400,000 3,289,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 65
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
HEALTHSOUTH Rehab
Sr Sub Nts 9.50% 2001 $1,000,000 $ 980,000
Hillhaven
Sr Nts 10.125 2001 3,000,000 3,075,000
____________
Total 11,649,500
_____________________________________________________________________________________________________________________________
Household products (0.4%)
Revlon Consumer Products 10.50 2003 2,500,000 2,250,000
Revlon Worldwide
Zero Coupon Sr Sec 12.00 1998 2,500,000 (d) 1,137,500
____________
Total 3,387,500
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.6%)
Mascotech
Cv 4.50 2003 1,500,000 1,359,375
Omega Healthcare 7.11 2000 2,909,023 (g) 2,879,933
____________
Total 4,239,308
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (1.2%)
Cinemark (USA)
Sr Nts 12.00 2002 3,000,000 3,300,000
GB Property
1st Mtge 10.875 2004 3,000,000 2,910,000
Showboat
1st Mtge 9.25 2008 3,000,000 2,820,000
____________
Total 9,030,000
_____________________________________________________________________________________________________________________________
Media (5.4%)
Adelphia Communications
Sr Deb 11.875 2004 3,000,000 3,255,000
Cablevision Inds 9.25 2008 3,500,000 3,325,000
Cablevision Systems
Sr Sub Deb 9.875 2013 3,000,000 3,090,000
Comcast
Cv 1.125 2007 1,500,000 669,375
Continental Cablevision
Sr Deb 8.875 2005 2,500,000 2,462,500
News Corp 10.15 2010 3,951,543 (g) 4,406,643
Robin Media Group 11.125 1997 2,000,000 2,042,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 66
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Rogers Communications
Sr Deb 10.875% 2004 $2,000,000 $ 2,105,000
Zero Coupon Cv 5.50 1998 6,000,000 (d) 2,310,000
Sci Television 7.50 1998 4,000,000 3,880,000
SPI Holding
Zero Coupon Sr Disc Nts 11.50 1996 4,000,000 (d) 3,010,000
Tele-Communications
Sr Deb 9.80 2012 3,500,000 3,880,625
Turner Broadcasting System
Sr Nts 8.375 2013 6,900,000 6,382,500
____________
Total 40,819,143
_____________________________________________________________________________________________________________________________
Metals (0.5%)
A.K. Steel
Sr Nt 10.75 2004 2,000,000 1,990,000
Geneva Steel
Sr Nt 9.50 2004 2,000,000 1,880,000
____________
Total 3,870,000
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.0%)
Mark IV Inds
Sr Sub Nts 8.75 2003 3,300,000 3,151,500
Talley Inds
Zero Coupon Sr Disc Deb 12.20 1998 2,000,000 (d) 1,225,000
Talley Mfg & Technology 10.75 2003 3,000,000 3,000,000
____________
Total 7,376,500
_____________________________________________________________________________________________________________________________
Paper & packaging (2.7%)
Container Corp Amer
Sr Nts 9.75 2003 3,000,000 2,981,250
Federal Paper Board 10.00 2011 1,900,000 2,170,750
Gaylord Container
Sr Nts 11.50 2001 2,500,000 2,534,375
Pope & Talbot 8.375 2013 3,000,000 2,928,750
Repap Wisconsin
Sr Secured Nts 9.25 2002 2,000,000 1,930,000
Riverwood Intl
Cv 6.75 2003 1,000,000 (g) 1,065,000
Silgan
Sr Sub Nts 11.75 2002 4,000,000 4,260,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 67
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Stone Container
Sr Nts 9.875% 2001 $3,000,000 $ 2,775,000
____________
Total 20,645,125
_____________________________________________________________________________________________________________________________
Restaurants & lodging (1.3%)
Bally's Grand
1st Mtge 10.375 2003 1,500,000 (g) 1,466,250
Family Restaurant
Sr Nts 9.75 2002 2,500,000 2,337,500
Hammons (Jonn Q) Hotel
1st Mtge 8.875 2004 3,000,000 2,820,000
Trump Taj Mahal
Pay-in-Kind -- 1999 3,000,000 2,985,000
____________
Total 9,608,750
_____________________________________________________________________________________________________________________________
Retail (3.6%)
Dairy Mart Stores
Sr Sub Nts 10.25 2004 2,500,000 2,425,000
Eckerd (Jack)
Sr Sub Nts 9.25 2004 2,000,000 1,837,500
Eye Care Center 12.00 2003 4,000,000 (g) 4,120,000
Grand Union 12.25 2002 3,000,000 3,105,000
Sr Sub Nts 12.25 2002 2,000,000 1,990,000
Kash n' Karry Food Stores
Sub Deb 14.00 2001 4,000,000 (j) 3,160,000
Penn Traffic
Sr Nts 10.25 2002 1,000,000 1,070,000
Sr Sub Nts 9.625 2005 3,000,000 2,985,000
Specialty Retailers 10.00 2000 3,000,000 3,030,000
Wal-Mart Stores 8.875 2011 3,500,000 3,749,375
____________
Total 27,471,875
_____________________________________________________________________________________________________________________________
Textiles & apparel (1.2%)
Dominion Textiles
Sr Nt 8.875 2003 3,900,000 3,627,000
JPS Textile Group 9.85 1999 1,000,000 1,010,000
11.75 1996 2,000,000 (g) 2,040,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 68
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
WestPoint Stevens
Sr Nts 8.75% 2001 $2,500,000 $2,362,500
____________
Total 9,039,500
_____________________________________________________________________________________________________________________________
Miscellaneous industry (0.2%)
ECM Funding LP 11.918 2002 1,290,316 (i) 1,447,089
_____________________________________________________________________________________________________________________________
Municipal (0.6%)
Washington Public Power Supply System
Bonneville Nuclear Project #3
Refunding Revenue Bonds 5.375 2015 5,000,000 4,377,100
_____________________________________________________________________________________________________________________________
Transportation (0.9%)
AMR 9.75 2000 3,000,000 3,266,250
9.80 2021 3,000,000 3,165,000
Interpool
Cv 5.25 2018 200,000 187,250
____________
Total 6,618,500
_____________________________________________________________________________________________________________________________
Utilities (9.4%)
Electric (7.2%)
Arizona Public Service
1st Mtge 8.75 2024 3,000,000 3,206,250
Sale Lease-Backed Obligation 8.00 2015 3,600,000 3,541,500
Commonwealth Edison
1st Mtge 9.875 2020 4,000,000 4,490,000
Gulf States Utilities
1st Mtge 8.70 2024 6,000,000 6,142,500
Long Island Lighting 9.00 2022 3,000,000 3,007,500
Gen Ref Mtge 9.625 2024 3,000,000 3,195,000
Louisiana Power & Light
Sale Lease-Backed Obligation 10.30 2005 1,900,000 2,014,000
Midland Cogeneration Venture 10.33 2002 1,844,356 1,925,046
11.75 2005 2,000,000 2,100,000
Sub Secured Sale Lease-Backed
Obligation 10.33 2002 2,978,957 (g) 3,109,287
Pacific Gas & Electric
1st & Ref 8.25 2022 4,000,000 4,085,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 69
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Pennsylvania Power & Light
1st Mtge 9.25% 2019 $ 900,000 $ 983,250
Sithe Independence Funding 9.00 2013 2,000,000 2,077,500
Texas-New Mexico Power
1st Mtge 9.25 2000 3,000,000 3,082,500
1st Mtge 10.00 2017 3,000,000 3,146,250
Texas Utilities Electric
1st Mtge 7.375 2025 3,000,000 2,745,000
1st Mtge 9.75 2021 4,900,000 5,469,625
____________
Total 54,320,208
_____________________________________________________________________________________________________________________________
Gas (1.2%)
Tennessee Gas Pipeline 6.00 2011 600,000 470,250
Transco Energy 9.375 2001 4,000,000 4,080,000
Transcontinental Gas Pipeline 8.875 2002 4,000,000 4,165,000
____________
Total 8,715,250
_____________________________________________________________________________________________________________________________
Telephone (1.0%)
New York Tel 9.375 2031 3,500,000 4,007,500
Pacific Bell 7.375 2043 4,000,000 3,685,000
____________
Total 7,692,500
_____________________________________________________________________________________________________________________________
Foreign (15.0%)(k)
ABN Amro
(U.S. Dollar) 7.75 2023 1,700,000 1,663,875
(U.S. Dollar) 7.125 2093 3,800,000 3,334,500
Agnico Eagle Mines
(U.S. Dollar) Cv 3.50 2004 850,000 735,250
Banca Italy N.Y.
(U.S. Dollar) 8.25 2007 3,000,000 3,078,750
Bank of Scotland
(U.S. Dollar) 8.80 2004 3,500,000 (g) 3,808,630
Canadian Pacific Forest
(U.S. Dollar) 9.375 2004 3,000,000 (g) 2,970,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 70
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Doman Inds
(U.S. Dollar) 8.75% 2004 $ 3,000,000 $ 2,771,250
Ford Capital BV
(U.S. Dollar) 9.125 1998 4,000,000 4,350,000
Govt of Canada
(Canadian Dollar) 10.50 2001 4,750,000 3,909,844
Guang Dong Enterprise
(U.S. Dollar) 8.75 2003 4,000,000 (g) 3,765,000
Hanson Inds
(British Pound) Cv 9.50 2006 1,000,000 1,770,400
Hydro Quebec
(U.S. Dollar) 9.40 2021 2,400,000 2,739,000
KEPC
(U.S. Dollar) 6.375 2003 3,000,000 2,688,750
(U.S. Dollar) 8.00 2002 2,800,000 2,824,500
Korea Telecom
(U.S. Dollar) 7.40 1999 2,000,000 2,020,000
Lend Lease Euro
(U.S. Dollar) Cv 4.75 2003 1,000,000 (g) 1,156,250
Macmillan Bloeo
(U.S. Dollar) 8.50 2004 3,000,000 3,086,250
Mexican/United States Govt Euro
(U.S. Dollar) 6.25 2019 3,000,000 2,062,500
Noranda Forest
(U.S. Dollar) 7.50 2003 4,000,000 3,820,000
(U.S. Dollar) 8.875 1999 5,000,000 5,193,750
Peoples Republic of China
(U.S. Dollar) 6.50 2004 5,000,000 (b) 4,450,000
Petroleos Mexicanos
(U.S. Dollar) 8.625 2023 5,000,000 4,443,750
Placer Dome
(U.S. Dollar) 7.125 2003 5,000,000 4,868,750
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 71
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Province of Ontario
(U.S. Dollar) 7.375% 2003 $3,000,000 $ 3,000,000
PT Indah Kiat Euro
(U.S. Dollar) 8.875 2000 3,000,000 2,831,250
Qantas Air
(U.S. Dollar) 7.50 2003 4,000,000 (g) 3,860,000
Republic of Argentina
(U.S. Dollar) 4.00 2023 8,000,000 4,160,000
Republic of Columbia
(U.S. Dollar) 7.25 2004 3,500,000 3,272,500
Republic of Italy
(U.S. Dollar) 6.875 2023 5,500,000 4,826,250
Roche Holdings
(U.S. Dollar) 2.75 2000 4,000,000 3,182,480
Rogers Cantel Mobile
(U.S.Dollar) Sr Sec Gtd Nts 10.75 2001 3,000,000 3,150,000
Rogers Comunication
(U.S. Dollar) Cv 2.00 2005 2,000,000 1,295,000
Shangri-La Asia Euro
(U.S. Dollar) Cv 2.875 2000 600,000 (g) 513,000
Tarkett Intl
(U.S. Dollar) 9.00 2002 3,000,000 (g) 2,775,000
TOLMEX
(U.S. Dollar) 8.375 2003 4,000,000 3,845,000
United Engineers Malaysia
(U.S.Dollar) Cv 2.00 2004 500,000 (g) 455,000
U.K. Treasury
(British Pound) 8.00 2003 2,500,000 3,825,950
____________
Total 112,502,429
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $635,827,610) $634,192,308
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 72
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Preferred stocks & other (3.0%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
ABN AMRO Holdings
6% Cv 27,400 $ 946,232
Algoma Finance
5.50% Series A 50,000 749,774
Amer Life Holdings
2.16% Cv 120,000 3,060,000
Anacomp
$8.25 Series 1 10,000 (i) 372,500
Dr. Pepper/Seven-Up
Common 40,500 (j) 972,000
Envirodyne Inds
Common 30,296 (j) 219,646
EnviroSource
7.25% Cv 30,000 3,420,000
First Chicago
2.875% Cm Cv 25,000 1,309,375
Hills Stores 57,239 (j) 1,137,625
Cv 38,416 (j) 768,320
Rights 26,828 241,586
Liberty Media
6% Cl E 25,000 1,875,000
Magma Copper
2.8125% Cv 15,000 871,875
Merry Land & Investment
1.75% Cm Cv 22,000 621,500
Natl Health Investors
8.50% Cv 23,000 575,000
Occidental Petroleum
3.875% Cm Cv 14,000 (g) 668,500
Pittston Mineral
6.25% Cv Series C 10,000 (g) 390,000
Property Trust Amer
$1.75 Cv Series A 22,605 615,986
Public Service of
New Hampshire
10.60% Cm 71,000 1,881,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 73
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Snyder Oil
6% Cv 50,000 $ 1,300,000
Sonoco Products
$2.25 Cv 16,800 877,800
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $22,994,988) $22,874,219
_____________________________________________________________________________________________________________________________
Short-term securities (10.5%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
U.S. government agencies (0.9%)
Federal Home Loan Bank Disc Notes
04-25-94 3.47% $1,000,000 $ 997,693
04-28-94 3.51 3,000,000 2,992,125
Federal Natl Mtge Assn Disc Note
04-25-94 3.43 2,700,000 2,693,844
____________
Total 6,683,662
_____________________________________________________________________________________________________________________________
Commercial paper (9.6%)
AIG Funding
05-02-94 3.59 5,900,000 5,881,812
Aon
04-08-94 3.59 500,000 499,652
AT&T Capital
04-25-94 3.60 2,700,000 2,693,556
Campbell Soup
04-12-94 3.53 3,100,000 3,096,666
Commerzbank
U.S. Finance
04-06-94 3.46 2,600,000 2,598,754
Cooper Inds
04-08-94 3.55 2,100,000 2,098,551
Corporate Asset Funding
04-08-94 3.56 4,100,000 4,097,170
04-11-94 3.53 2,200,000 2,197,849
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 74
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
CPC Intl
05-06-94 3.63% $5,500,000 (l) $ 5,480,643
Dun & Bradstreet
04-19-94 3.56 7,700,000 7,686,332
Fleet Funding
04-07-94 3.56 600,000 (l) 599,645
04-18-94 3.58 5,000,000 (l) 4,991,571
Gateway Fuel
04-13-94 3.56 4,300,000 4,294,912
Goldman Sachs
05-04-94 3.61 5,300,000 5,282,510
Hewlett-Packard
05-02-94 3.69 700,000 697,788
Penney (JC) Funding
05-12-94 3.62 700,000 697,130
Pennsylvania Power & Light
Energy Trust
04-15-94 3.56 7,000,000 6,990,336
St. Paul Companies
04-20-94 3.54 4,100,000 (l) 4,092,372
Schering
04-28-94 3.61 3,000,000 2,991,900
USAA Capital
04-20-94 3.57 1,800,000 1,796,627
05-05-94 3.61 3,400,000 3,388,440
____________
Total 72,154,216
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $78,837,878) $ 78,837,878
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $737,660,476)(m) $735,904,405
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 75
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund
March 31, 1994
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Security is partially or fully on loan. See Note 5 to the financial statements.
(c) Partially pledged as initial deposit on the following open interest rate futures purchase contract (see Note
7 to the financial statements):
Type of security Par value
_________________________________________________________________________________
<S> <C> <C>
Municipal Bond, June 1994 5,000,000
_________________________________________________________________________________
(d) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date
of acquisition.
(e) Inverse floaters represent securities which pay interest at a rate that increases (decreases)
with a decline (increase) in the LIBOR (London InterBank Offering Rate) Index. Interest rate disclosed
is the rate in effect on March 31, 1994.
(f) This security is a collateralized mortgage obligation whose payment of principal has been deferred until
payment of a previous series within the trust have been paid off.
(g) Represents a security sold under Rule 144A which is exempt from registration under the Securities Act of
1933, as amended. This security has been determined to be liquid under guidelines established by the
board of directors.
(h) Interest rate varies, rate shown is the effective rate on March 31, 1994.
(i) Identifies issues considered to be illiquid, (see Note 9 to the financial statements). Information
concerning such security holdings at March 31, 1994, is as follows:
Security Acquisition Cost
date
__________________________________________________________________________________
Anacomp
$8.25 Series 1 08-20-92 $ 347,500
12.25% Series B 08-21-92 3,153,750
ECM Funding LP
11.918% 2002 04-13-92 1,290,316
__________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 76
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Income Fund
March 31, 1994
_____________________________________________________________________________________________________________________________
Notes to investments in securities (continued)
_____________________________________________________________________________________________________________________________
(j) Presently non-income producing. For long-term debt securities, items identified are in default as to payment of interest
and/or principal.
(k) Foreign security values are stated in U.S. dollars; principal amounts are denominated in the currency indicated.
(l) 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.
(m) At March 31, 1994, the cost of securities for federal income tax purposes was $737,401,362 and the aggregate gross
unrealized appreciation and depreciation based on that cost was:
<S> <C>
Unrealized appreciation $20,347,825
Unrealized depreciation (21,844,782)
________________________________________________________________________________________________________________
Net unrealized depreciation $(1,496,957)
________________________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 77
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Short-Term Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (66.9%)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
U.S. government obligations (21.2%)
U.S. Treasury 5.625% 1998 $25,000,000 $24,706,498
7.50 1996 5,000,000 5,205,150
7.875 1996 10,100,000 10,607,947
____________
Total 40,519,595
_____________________________________________________________________________________________________________________________
Mortgage-backed securities (32.5%)
Federal Home Loan Mtge Corp 5.332 1994-19 38,098 (b) 38,790
5.50 1994-21 3,485,455 (b) 3,555,583
5.587 1994-22 4,885,215 (b) 5,053,119
5.633 1994-20 1,845,572 (b) 1,884,052
5.641 1994-21 2,949,806 (b) 3,095,438
5.73 1994-22 1,763,983 (b) 1,801,026
5.782 1994-21 1,135,530 (b) 1,188,752
5.814 1994-22 655,295 (b) 669,724
5.851 1994-22 5,948,758 (b) 6,083,498
7.983 1994-18 1,140,317 (b) 1,172,388
Collateralized Mtge Obligation 6.50 1994-03 2,070,820 1,927,147
6.85 1994-20 2,400,000 (b) 2,304,192
Inverse Floater 20.577 2021 862,113 (c) 905,813
Federal Natl Mtge Assn 3.849 1994-24 3,974,480 (b) 4,049,001
5.094 1994-21 1,191,828 (b) 1,214,890
5.379 1994-21 411,164 (b) 420,173
5.451 1994-21 1,304,603 (b) 1,334,674
5.60 1994-21 1,029,930 (b) 1,054,802
6.50 1994-24 10,363,556 9,638,107
Collateralized Mtge Obligation 6.50 2017 5,065,466 5,092,212
6.825 2022 1,700,000 1,173,000
Collateralized Mtge Obligation Inverse Floater 10.563 2022 800,000 (c) 803,592
11.423 2023 2,276,746 (c) 2,046,226
Interest Only 7.50 2007 1,147,382 (d) 812,711
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 78
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy, Fund, Inc.
Short-Term Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Govt Natl Mtge Assn 9.50% 1994-16 $4,102,527 $ 4,361,499
Salomon Brothers Capital
Collateralized Mtge Obligation 8.00 2003 512,404 514,966
____________
Total 62,195,375
_____________________________________________________________________________________________________________________________
Automotive & related (4.0%)
Ford Motor Credit 8.50 1994 2,500,000 2,528,125
General Motors Acceptance 6.50 1995 2,500,000 2,528,125
9.00 1995 2,500,000 2,575,000
____________
Total 7,631,250
_____________________________________________________________________________________________________________________________
Banks and savings & loans (1.8%)
Bank New York Master Credit Card 7.95 1996 2,333,333 2,354,730
Morgan (JP)
Sub Cap Nts 8.875 1994 1,000,000 1,013,750
____________
Total 3,368,480
_____________________________________________________________________________________________________________________________
Beverages & tobacco (2.7%)
Philip Morris 8.25 1995 5,000,000 5,143,750
_____________________________________________________________________________________________________________________________
Commercial finance (1.1%)
Ford Credit
Asset-Backed Obligation 8.75 1995 591,820 594,187
General Motors Acceptance Credit
Asset-Backed Obligation 8.25 1995 557,422 565,014
US Auto Rec
Asset-Backed Obligation 8.15 1996 475,741 474,885
Asset-Backed Obligation 8.65 1995 455,892 456,403
____________
Total 2,090,489
_____________________________________________________________________________________________________________________________
Financial services (1.5%)
Beneficial 9.35 1995 1,900,000 1,995,000
Discover Card
Asset-Backed Obligation 8.375 1996 1,000,000 1,001,250
____________
Total 2,996,250
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 79
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Short-term Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Foreign (2.1%)(e)
Mitsubishi Bank 8.625% 1994 $4,000,000 $ 4,032,000
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $130,004,994) $127,977,189
_____________________________________________________________________________________________________________________________
Short-term securities (32.2%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
U.S. government agencies (1.3%)
Federal Home Loan Bank Disc Note
04-14-94 3.42% $1,700,000 $ 1,697,907
Federal Natl Mtge Assn Disc Note
04-25-94 3.43 800,000 798,176
____________
Total 2,496,083
_____________________________________________________________________________________________________________________________
Commercial paper (30.4%)
ABB Treasury Center (USA)
04-12-94 3.54 4,100,000 (f) 4,095,578
Aon
04-20-94 3.64 1,400,000 1,397,322
Becton Dickinson
04-11-94 3.54 3,500,000 3,496,568
BellSouth Capital Funding
04-25-94 3.51 4,200,000 4,190,200
Cafco Public
05-02-94 3.61 1,500,000 1,495,350
Ciesco LP
04-19-94 3.53 2,700,000 2,695,248
04-27-94 3.66 6,400,000 6,383,129
Goldman Sachs Group
04-29-94 3.61 1,300,000 1,296,360
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 80
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Short-Term Income Fund (Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Commercial paper (cont'd)
Heinz (H.J.)
05-09-94 3.67% $9,400,000 $ 9,363,784
Lincoln Natl
04-18-94 3.54 1,200,000 (f) 1,198,000
Morgan Stanley Group
04-05-94 3.47 1,800,000 1,799,310
Nestle Capital
04-04-94 3.47 2,700,000 2,699,221
PACCAR Financial
04-07-94 3.51 3,300,000 3,298,075
04-14-94 3.53 4,100,000 4,094,788
Sara Lee
04-04-94 3.46 3,300,000 3,299,051
Schering
04-28-94 3.61 4,000,000 3,989,200
USAA Capital
04-20-94 3.57 3,300,000 3,293,817
____________
Total 58,085,001
_____________________________________________________________________________________________________________________________
Letter of credit (0.5%)
Bank of Amer-
AES Barbers Point
04-20-94 3.66 1,000,000 998,073
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $61,579,157) $ 61,579,157
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $191,584,151)(g) $189,556,346
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 81
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Short-Term Income Fund
March 31, 1994
_____________________________________________________________________________________________________________________________
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
March 31, 1994.
(c) Inverse floaters represent securities which pay interest at a rate that increases (decreases) with a decline (increase)
in the LIBOR (London InterBank Offering Rate) Index. Interest rate disclosed is the rate in effect on March 31, 1994.
(d) Principal amounts and interest rates disclosed for interest-only securities represent amortized cost and coupon rates,
respectively.
(e) Foreign security values and principal amounts are stated in U.S. dollars.
(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) On March 31, 1994, the cost of securities for federal income tax purposes was $191,559,307
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
<S> <C>
Unrealized appreciation $ 1,027,286
Unrealized depreciation (3,030,247)
____________________________________________________________________________________________
Net unrealized depreciation $(2,002,961)
____________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 82
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (90.3%)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Australia (6.1%)
Banks and savings & loans (1.3%)
Westpac Banking 891,000 $2,854,764
_____________________________________________________________________________________________________________________________
Energy (0.9%)
Broken Hill Proprietary 173,000 1,999,188
_____________________________________________________________________________________________________________________________
Industrial transportation (0.7%)
Brambles 156,000 1,487,772
_____________________________________________________________________________________________________________________________
Metals (2.0%)
CRA 179,200 2,093,414
Pasminco 1,574,500 (c) 2,207,449
____________
Total 4,300,863
_____________________________________________________________________________________________________________________________
Retail (1.2%)
Woolworth 1,178,800 2,578,036
_____________________________________________________________________________________________________________________________
Belgium (1.1%)
Chemicals (0.6%)
UCB 2,000 1,331,858
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.5%)
Bekaert 1,400 961,849
_____________________________________________________________________________________________________________________________
Canada (0.6%)
Media
BCE Mobile Telecom 45,100 (c) 1,205,926
_____________________________________________________________________________________________________________________________
Chile (0.1%)
Utilities-telephone
Chile Telephone 3,500 312,375
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 83
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Finland (0.4%)
Banks and savings & loans
Kansallis-Osake-Bank 375,000 (c) $ 783,375
_____________________________________________________________________________________________________________________________
France (6.7%)
Banks and savings & loans (0.5%)
Credit Commerciale de France 24,277 1,037,259
_____________________________________________________________________________________________________________________________
Building materials (1.1%)
LaFarge-Coppee 30,129 (d) 2,331,412
_____________________________________________________________________________________________________________________________
Electronics (0.4%)
Alcatel Alsthom 8,256 964,813
_____________________________________________________________________________________________________________________________
Energy (1.7%)
Elf Acquitaine 29,800 (c) 1,934,705
TOTAL France Petroleum Cl B 33,330 1,769,123
____________
Total 3,703,828
_____________________________________________________________________________________________________________________________
Financial services (1.3%)
Compagnie de Suez 51,000 2,805,459
_____________________________________________________________________________________________________________________________
Food (0.4%)
Eridania Beghin-Say 5,000 820,315
_____________________________________________________________________________________________________________________________
Health care (0.4%)
L'Oreal 4,500 926,212
_____________________________________________________________________________________________________________________________
Retail (0.1%)
Guilbert 2,522 233,656
_____________________________________________________________________________________________________________________________
Utilities-electric (0.8%)
Lyonnaise Des Eaux 17,140 1,708,275
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 84
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Germany (3.3%)
Banks and savings & loans (0.7%)
Duetsche Bank 3,000 $1,418,979
_____________________________________________________________________________________________________________________________
Building materials (0.2%)
Hochtief 550 351,477
_____________________________________________________________________________________________________________________________
Industrial transportation (0.8%)
Prueussag 6,400 1,761,043
_____________________________________________________________________________________________________________________________
Insurance (0.9%)
Munchener Ruckvericherungs 1,000 1,918,350
_____________________________________________________________________________________________________________________________
Utilities-electric (0.7%)
Veba 5,500 1,600,770
_____________________________________________________________________________________________________________________________
Hong Kong (6.3%)
Banks and savings & loans (0.9%)
Hang Seng Bank 292,000 1,907,928
_____________________________________________________________________________________________________________________________
Industrial transportation (0.6%)
Shun Tak Holdings 1,130,000 1,271,250
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.8%)
Hutchison Whampoa 345,000 1,406,220
Swire Pacific 372,000 2,575,356
____________
Total 3,981,576
_____________________________________________________________________________________________________________________________
Real estate (3.0%)
Great Eagle Holdings 2,552,000 1,607,760
Sun Hung Kai Properties 253,500 1,738,503
Wharf 790,000 3,046,240
____________
Total 6,392,503
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 85
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Italy (2.1%)
Automotive & related (1.3%)
Fiat 1,229,000 $ 2,723,464
_____________________________________________________________________________________________________________________________
Building materials (0.3%)
Cartiere Burgo 85,500 (c) 616,370
_____________________________________________________________________________________________________________________________
Communications equipment (0.5%)
STET 342,000 1,222,650
_____________________________________________________________________________________________________________________________
Japan (27.7%)
Banks and savings & loans (0.9%)
Fuji Bank 91,000 1,919,918
_____________________________________________________________________________________________________________________________
Building materials (0.9%)
Maeda Road 100,000 1,973,100
_____________________________________________________________________________________________________________________________
Chemicals (0.5%)
Mitsubishi Kasei 218,000 1,017,842
_____________________________________________________________________________________________________________________________
Electronics (9.4%)
Canon 66,000 1,044,384
Hitachi 232,000 2,107,488
Konika 145,000 903,495
Kyocera 33,000 2,121,009
Matsushita Communications 40,000 (d) 910,360
Matsushita Electric 110,000 1,826,550
Matsushita Kotobuki Electric 25,000 832,700
Nintendo 24,000 1,570,680
Rohm 58,000 (d) 2,209,510
Sony 69,000 3,942,798
TDK 34,000 1,428,068
Toshiba 179,000 1,288,621
____________
Total 20,185,663
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 86
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Japan (cont'd)
Financial services (2.0%)
Daiwa Securities 119,000 (c) $1,906,261
Sumitomo Trust & Banking 167,000 2,495,815
____________
Total 4,402,076
_____________________________________________________________________________________________________________________________
Food (0.4%)
Nicherei 131,000 (c) 882,809
_____________________________________________________________________________________________________________________________
Industrial equipment & services (4.2%)
Chiyoda 24,000 602,472
Fanuc 46,000 1,860,194
Fuji Machine Manufacturing 48,000 1,265,904
Mitsubishi Heavy Inds 350,000 2,225,300
Sumitomo Electric 218,000 3,194,136
____________
Total 9,148,006
_____________________________________________________________________________________________________________________________
Industrial transportation (1.8%)
Nippon Express 182,000 1,813,266
Nippon Steel 639,000 2,009,655
____________
3,822,921
_____________________________________________________________________________________________________________________________
Media (1.2%)
Kokusai Denshin Denwa 11,000 1,278,629
Tokyo Broadcasting Systems 75,000 1,267,350
____________
Total 2,545,979
_____________________________________________________________________________________________________________________________
Real estate (0.2%)
Mitsui Fudoson 45,000 509,850
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 87
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Japan (cont'd)
Retail (5.6%)
Aoyama Trading 34,000 $ 1,936,198
Family Mart 26,500 (c) 1,573,808
Ito-Yokado 66,000 3,500,640
Joshin Denki 38,000 608,722
Jusco 77,000 1,699,775
Keiyo 70,350 (d) 1,326,238
Marui 93,000 1,389,885
____________
Total 12,035,266
_____________________________________________________________________________________________________________________________
Miscellaneous (0.6%)
Itochu 188,000 1,276,144
_____________________________________________________________________________________________________________________________
Malaysia (2.6%)
Banks and savings & loans (0.4%)
Malayan Banking Berhad 167,500 867,482
_____________________________________________________________________________________________________________________________
Furniture & appliances (0.3%)
Berjaya Singer Berhad 365,000 562,830
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.4%)
Resorts World Berhad 179,000 860,453
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.8%)
Sime Darby 803,000 1,825,219
_____________________________________________________________________________________________________________________________
Utilities-electric (0.7%)
Tenaga Nasional Berhad 288,000 1,491,552
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 88
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Mexico (3.9%)
Building materials (2.8%)
Cemex Cl B ADR 85,000 (c) $4,080,000
Empresas 50,000 (d) 1,200,000
Grupo Mexicano de Desarollo 41,800 (c) 700,150
____________
Total 5,980,150
_____________________________________________________________________________________________________________________________
Communications equipment (0.7%)
Telefonos de Mexico 25,000 1,506,250
_____________________________________________________________________________________________________________________________
Retail (0.4%)
Benavides Cl B 162,000 (c) 906,876
_____________________________________________________________________________________________________________________________
Netherlands (2.2%)
Chemicals (0.7%)
Akzo Nobel N.V. 13,300 1,539,063
_____________________________________________________________________________________________________________________________
Financial services (0.3%)
Intl Nederlanden Groep 13,500 577,895
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.3%)
Stork 31,000 742,915
_____________________________________________________________________________________________________________________________
Media (0.9%)
Elsevier 21,100 1,861,653
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 89
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Norway (1.0%)
Energy (0.5%)
Saga Petroleum 103,000 $1,050,394
_____________________________________________________________________________________________________________________________
Industrial transportation (0.5%)
First Olsen Tankers 130,000 (c) 1,074,840
_____________________________________________________________________________________________________________________________
Singapore (5.1%)
Automotive and related (1.0%)
Cycle and Carriage 369,000 2,235,402
_____________________________________________________________________________________________________________________________
Banks and savings & loans (1.9%)
Development Bank Singapore ADR 11,250 393,750
Development Bank Singapore ORD 186,500 1,653,136
Overseas Union Bank 440,000 2,005,960
____________
Total 4,052,846
_____________________________________________________________________________________________________________________________
Beverages & tobacco (1.1%)
Fraser & Neave 214,600 2,299,224
_____________________________________________________________________________________________________________________________
Industrial transportation (1.1%)
Keppel 294,000 1,799,868
Sembawang Shipyard 91,000 626,717
____________
Total 2,426,585
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 90
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
South Africa (0.4%)
Gold mines
Anglo Amer 21,000 $ 863,058
_____________________________________________________________________________________________________________________________
Spain (3.2%)
Banks and savings & loans (0.9%)
Banco Popular Espanol 16,380 1,784,486
_____________________________________________________________________________________________________________________________
Energy (0.6%)
Repsol 43,000 1,349,942
_____________________________________________________________________________________________________________________________
Utilities-telephone (1.7%)
Telefonica de Espana 300,000 3,676,800
_____________________________________________________________________________________________________________________________
Sweden (1.8%)
Energy (0.9%)
Asea Cl B 26,700 2,004,289
_____________________________________________________________________________________________________________________________
Health care (0.7%)
Astra Cl A 35,250 689,701
Astra Cl B 36,300 687,014
____________
Total 1,376,715
_____________________________________________________________________________________________________________________________
Metals (0.2%)
Trelleborg Cl B 44,000 509,212
_____________________________________________________________________________________________________________________________
Switzerland (1.6%)
Banks and savings & loans (1.1%)
Schweizerischer Bankverein 16,200 2,354,476
_____________________________________________________________________________________________________________________________
Insurance (0.5%)
Schweiz-Ruckversicherungs 2,680 (c) 1,117,220
_____________________________________________________________________________________________________________________________
Thailand (0.6%)
Banks and savings & loans (0.3%)
Siam Commercial Bank 126,000 768,978
_____________________________________________________________________________________________________________________________
Computers & office equipment (0.3%)
Shinawatra Computer 23,000 546,963
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 91
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
United Kingdom (13.5%)
Building materials (1.2%)
CRH 160,000 $ 900,160
Tarmac 688,000 1,771,600
____________
Total 2,671,760
_____________________________________________________________________________________________________________________________
Computuers & office equipment (2.3%)
Rank Organisation 635,000 3,657,600
WPP 720,000 1,211,040
____________
Total 4,868,640
_____________________________________________________________________________________________________________________________
Electronics (0.2%)
Racal Electronics 146,000 454,060
_____________________________________________________________________________________________________________________________
Insurance (1.1%)
Sun Alliance Group 500,000 2,411,000
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.4%)
Siebe 360,000 3,172,320
_____________________________________________________________________________________________________________________________
Industrial transportation (1.0%)
British Airways 355,000 2,137,455
_____________________________________________________________________________________________________________________________
Metals (0.6%)
RTZ 103,848 1,270,580
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 92
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
United Kingdom (cont'd)
Multi-industry conglomerates (3.6%)
BTR 610,000 $ 3,273,260
Hanson 593,100 2,381,297
T & N 605,000 2,026,145
____________
Total 7,680,702
_____________________________________________________________________________________________________________________________
Real estate (0.8%)
MEPC 250,000 1,659,500
_____________________________________________________________________________________________________________________________
Retail (1.3%)
Next 780,000 2,728,440
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $181,499,697) $194,501,394
_____________________________________________________________________________________________________________________________
Other (0.3%)
_____________________________________________________________________________________________________________________________
Issuer (b) Shares Value(a)
_____________________________________________________________________________________________________________________________
Broken Hill Proprietary
Warrants 600,000 $ 513,000
Kingfisher
Warrants 200,000 81,870
_____________________________________________________________________________________________________________________________
Total other
(Cost: $978,055) $ 594,870
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 93
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund Percentages represent value of
March 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (7.4%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
Yield on Payable
Date of at
Purchase Maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.1%)
Federal Natl Mtge
Assn Disc Note
04-25-94 3.43% $ 200,000 $ 199,544
_____________________________________________________________________________________________________________________________
Commercial paper (7.3%)
Becton Dickinson
Real Estate
04-08-94 3.55 2,200,000 2,198,486
04-28-94 3.59 2,100,000 2,094,369
CAFCO
04-20-94 3.54 2,200,000 2,195,901
Ciesco LP
04-19-94 3.53 2,300,000 2,295,952
Heinz (HJ)
05-09-94 3.67 2,800,000 2,789,212
Kredietbank
04-25-94 3.65 2,700,000 2,693,466
Lincoln Natl
04-18-94 3.53 700,000 (e) 698,837
Southwestern Bell Capital
04-05-94 3.53 800,000 (e) 799,687
____________
15,765,910
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $15,965,454) $ 15,965,454
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $198,443,206)(f) $211,061,718
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 94
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Fund, Inc.
Worldwide Growth Fund
March 31, 1994
_____________________________________________________________________________________________________________________________
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 March 31, 1994, the cost of securities for federal income tax purposes was $198,449,923
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
<S> <C>
Unrealized appreciation $18,839,485
Unrealized depreciation (6,227,690)
_________________________________________________________________________________________________________________________
Net unrealized appreciation $12,611,795
_________________________________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 95
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conversation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
achieve 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
provide high current income. Secondary objective is capital
growth.
(icon of) cornucopia
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories,or the equivalent, and in
government bonds.
(icon of) greek column
<PAGE>
PAGE 96
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
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.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
<PAGE>
PAGE 97
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75 percent 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
percent 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. Holding may range
from small- to large-capitalization stocks, including those of
companies involve 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
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
<PAGE>
PAGE 98
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 primarily in common stocks of blue chip U.S. companies
representing almost every major sector 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
provide 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 provide high
current income and, secondarily to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
<PAGE>
PAGE 99
IDS Discovery Fund
Invests in small and medium-sized, 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 domestic companies with significant growth
potential due to superiority in technology, marketing or
management. The Fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The Fund holds
stocks for the long-term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
<PAGE>
PAGE 100
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 101
Federal income tax information
IDS Strategy Fund, Inc.
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Distribution prior to 1/1/94 were reported
to you on a Form 1099-DIV, Dividends and Distributions, last
January. Shareholders should consult a tax adviser on how to
report distributions for state and local purposes.
IDS Strategy Fund, Inc.
Aggressive Equity Fund
Fiscal year ended March 31, 1994
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 30, 1993 $1.4184
Total distribution $1.4184
___________________________________________________________________
IDS Strategy Fund, Inc.
Equity Fund
Fiscal year ended March 31, 1994
Income distributions
taxable as dividend income, 38.83% qualifying for deduction by
corporations.
Payable date Per share
June 28, 1993 $0.0550
Sept. 27, 1993 0.0475
Dec. 29, 1993 0.2362
March 30, 1994 0.0375
Total $0.3762
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 29, 1993 $0.4610
Total distributions $0.8372
The distribution of $0.6972 per share, payable Dec. 29, 1993,
consisted of $0.0388 derived from net investment income, $0.1974
from net short-term capital gains (a total of $0.2362 taxable as
dividend income) and $0.4610 from net long-term capital gains.
<PAGE>
PAGE 102
Federal income tax information
IDS Strategy Fund, Inc.
IDS Strategy Fund, Inc.
Income Fund
Fiscal year ended March 31, 1994
Income distributions
taxable as dividend income, 2.11% qualifying for deduction by
corporations.
Payable date Per share
June 25, 1993 $0.1060
Sept. 24, 1993 0.1038
Dec. 29, 1993 0.1180
March 28, 1994 0.1010
Total $0.4288
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 29, 1993 $0.0635
Total distributions $0.4923
The distribution of $0.1815 per share, payable Dec. 29, 1993,
consisted of $0.1090 derived from net investment income, $0.0090
from short-term capital gains (a total of $0.1180 taxable as
dividend income) and $0.0635 from net long-term capital gains.
IDS Strategy Fund, Inc.
Short-Term Income Fund
Fiscal year ended March 31, 1994
Income distributions
taxable as dividend income, none qualifying for deduction by
corporations.
Payable date Per share
June 25, 1993 $0.0110
Sept. 24, 1993 0.0105
Dec. 29, 1993 0.0115
March 28, 1994 0.0094
Total $0.0424
Capital gain distribution taxable as long-term capital gain.
Payable date Per share
Dec. 29, 1993 $0.0039
Total distributions $0.0463<PAGE>
PAGE 103
Quick telephone reference
IDS Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
Your IDS financial planner:
IDS Strategy Fund, Inc.
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 104
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in blue strip at the top
of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
