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IDS Strategy Aggressive Fund
1995 annual report
(prospectus enclosed)
(Icon of) Chess piece
The goal of IDS Strategy Aggressive Fund, a part of IDS Strategy
Fund, Inc., is long-term growth of capital. The fund invests
primarily in common stocks that are selected for their above-
average growth potential.
(This annual report includes a prospectus that describes in detail
the fund's objective, investment policies, risks, sales charges,
fees and other matters of interest. Please read the prospectus
carefully before you invest or send money.)
Distributed by American Express Financial Advisors Inc.
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PAGE 2
(Icon of) Chess piece
Corporate climbers
All rapidly growing companies pass through various stages. During
their middle stage, they're known in the investment world as "mid-
caps." Stocks of such companies, which are the main focus of this
fund, offer investors an attractive combination: the potential for
above-average corporate growth without the initial risks that are
inherent in brand-new businesses.
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Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the fund in detail.
1995 annual report
From the president 4
From the portfolio manager 4
Ten largest holdings 6
Making the most of your fund 7
Long-term performance 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 20
IDS mutual funds 24
Federal income tax information 27
1995 prospectus
The fund in brief
Goal 3p
Types of fund investments and their risks 3p
Manager and distributor 3p
Portfolio manager 3p
Alternative sales arrangements 3p
Sales charge and fund expenses
Sales charge and operating expenses 4p
Performance
Financial highlights 6p
Total returns 7p
Key terms 9p
Investment policies and risks
Facts about investments and their risks 10p
Alternative investment option 14p
Valuing assets 14p
How to buy, exchange or sell shares
Alternative sales arrangements 15p
How to buy shares 17p
How to exchange shares 20p
How to sell shares 20p
Reductions and waivers of the sales charge 25p
Special shareholder services
Services 29p
Quick telephone reference 29p
Distributions and taxes
Dividend and capital gain distributions 30p
Reinvestments 30p
Taxes 31p
How the fund is organized
Shares 34p
Voting rights 34p
Shareholder meetings 34p
Directors and officers 34p
Investment manager and transfer agent 36p
Distributor 37p
About American Express Financial Corporation
General information 38p
Appendix
Descriptions of derivative instruments 39p
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PAGE 4
To our shareholders
(Photo of) William R. Pearce, President of the fund
(Photo of) David Bayer, Portfolio manager
From the president
All of the funds in the IDS MUTUAL FUND GROUP held shareholder
meetings on Nov. 9, 1994. The meetings, which were well-attended,
approved all of the proposals advanced by management. Among the
proposals were:
The election of directors and the selection of KPMG Peat Marwick
LLP as independent auditors for each of the funds in the group.
A new investment management agreement that became effective March
1995, when the funds began offering multiple classes of shares.
A change in investment policy that will permit the fund to adopt a
master/feeder structure if and when the board of each fund
determines that it is in the best interest of shareholders.
Changes with respect to the fund's "fundamental investment
policies" that, among other things, allows the board to modify them
should it deem appropriate.
The final change shareholders approved was the remaning of this
fund - from IDS Strategy Aggressive Equity to IDS Strategy
Aggressive. The investment policies have not changed, and your
investment is in no way affected.
No other business was presented at the meeting, which was concluded
by a report to shareholders from the American Express Financial
Corporation Investment Department.
Thanks to all of you for your effort in reviewing the proxy
material and voting your proxies.
William R. Pearce
From the portfolio manager
Continuing their pattern of recent years, growth stocks were
volatile during the past 12 months, as rising interest rates and
the strength of corporate profits produced a tug-of-war effect on
the stock market as a whole. Nevertheless, IDS Strategy Aggressive
Fund capitalized on the periodic upturns and posted a positive
total return for the fiscal year as a whole (April 1994 through
March 1995).
The period began with growth stocks in a slump. The principal
cause was higher interest rates, which many investors thought would
hurt the business prospects of rapidly growing companies. This
concern spawned widespread selling for many weeks. Despite a
strong rebound in August, that early setback kept the fund in
negative territory until fall.
A positive trend
The second half of the fiscal year continued to be characterized by
substantial ups and downs, but an underlying shift toward growth
stocks began to emerge in the market. This was the result of three
factors: ongoing positive inflation reports, a decline in long-term
interest rates and the possibility of an economic slowdown, which,
if it occurred, would likely have the least effect on growth
companies. The best evidence of this trend came during February
and March, when growth stocks and the fund put together two sizable
monthly gains, something they hadn't done for quite some time.
Much of our rebound was keyed by our holdings among technology
stocks (mainly those of computer semiconductor and software
providers) and health-care stocks (largely pharmaceuticals) - two
groups that we emphasized in the portfolio throughout the fiscal
year. Among the poor performers, on the other hand, were stocks of
retailing companies.
Longer-term outlook is good
As gratifying as the first quarter of 1995 was, we don't expect the
market to maintain that kind of pace all year. In fact, occasional
pauses or modest retreats are natural occurrences during even the
strongest of bull markets and can actually help build a foundation
for future advances.
Still, we do expect more consistently positive results from growth
stocks this year than we experienced in 1994. What's more, we
think the outlook for small and mid-size growth companies - the
core of this fund - remains bright. As had been true for the past
several months, we think technology and health-care stocks offer
the best potential in the growth sector, and we are maintaining our
highest exposure to those areas.
David Bayer
Class A
March 20, 1995 - March 31, 1995
(All figures per share)
Net asset value (NAV)
March 31, 1995 $14.91
March 20, 1995* $14.84
Increase $ 0.07
Distributions
March 20, 1995 - March 31, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return** --%***
Class B
12-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1995 $14.90
March 31, 1994 $14.39
Increase $ 0.51
Distributions
April 1, 1994 - March 31, 1995
From income $ --
From capital gains $ 0.15
Total distributions $ 0.15
Total return** +4.7%
Class Y
March 28, 1995 - March 31, 1995
(All figures per share)
Net asset value (NAV)
March 31, 1995 $14.89
March 28, 1995* $15.19
Decrease $(0.30)
Distributions
March 28, 1995 - March 31, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return** --%***
* Commencement of operations.
** The prospectus discusses the effects of the sales charge on the
various classes.
***Not presented--as short period of operations may not be
indicative of annual results.
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PAGE 5
<TABLE>
<CAPTION>
Your fund's ten largest holdings
_____________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of March 31, 1995)
_____________________________________________________________________________________________________
<S> <C> <C>
Parametric Technology 2.65% $20,724,000
A producer of software products for the automation
of complex engineering tasks that are essential
to the development of virtually all manufactured products.
United Healthcare 2.27 17,793,050
United Healthcare is a national leader in health care cost
management and is the largest publicly held operator of health
maintenance organizations.
Oracle Systems 2.24 17,568,750
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.
U.S. HealthCare 2.23 17,434,500
U.S. HealthCare is a strong regional health maintenance
organization operating in the east, including the states of
New York, northern New Jersey, and Pennsylvania.
Intel 2.09 16,397,850
Designs and manufactures the high-end microprocessor chips
and related components used in IBM and IBM-compatible personal
computers.
Cisco Systems 1.96 15,379,625
A leader in the "router" segment of the networking industry.
Cisco routers allow interconnection of PCs, minicomputers
and mainframe to local and global networks.
SAP (Germany) 1.87 14,619,933
A leading computer software producer, the company is engaged
in development, application, training, marketing consultancy
and customer support in Germany and overseas.
Sybase, Inc. 1.73 13,572,000
A provider of relational database-management software
products and services for on-line applications in networked
computing environments.
Pfizer 1.69 13,265,525
A leading producer of pharmaceuticals, hospital products,
animal health items, non prescription medications and
specialty chemicals.
Humana 1.60 12,515,250
Following the spin-off of its acute care hospital
operations (Galen), Humana provides managed care
services primarily through health maintenance
organizations and preferred provider organizations.
(Pie chart)
The ten holdings listed here make up 20.33% of the fund's net assets.
</TABLE>
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PAGE 6
Making the most of your fund
Class B
Average annual total return*
(as of March 31, 1995)
1 year 5 years 10 years
+0.68% +9.18% +12.94%
* Average annual total return is not presented for Class A and
Class Y because annualized return based on short period of
operations may not be indicative of annual results.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original costs.
Figures reflect the impact of a deferred sales charge assuming
redemption at the end of the stated periods above. This was a
period of widely fluctuating security prices. Past performance is
no guarantee of future results.
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 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low.
(arrow in table pointing to Sept) 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.
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PAGE 7
Your fund's long-term performance
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.
Class B*
How your $10,000 has grown in IDS Strategy Aggressive Fund
Average annual total return
(as of March 31, 1995)
1 year 5 years 10 years
+0.68% +9.18% +12.94%
S&P 500
$33,779
Strategy Aggressive Fund
$30,000
$20,000
Lipper Small Company
Growth Index
$10,000
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95
* Average annual total return is not presented for Class A and
Class Y because annualized return based on short period of
operations may not be indicative of annual results.
Assumes: Holding period from 4/1/85 to 3/31/95. 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 $9,903.
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.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures reflect the impact of a deferred sales charge assuming
redemption at the end of the stated periods above. This was a
period of widely fluctuating security prices. Past performance is
no guarantee of future results.
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Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS Strategy Aggressive Fund:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS Strategy Aggressive Fund--formerly known as IDS Strategy
Aggressive Equity Fund (a series of IDS Strategy Fund, Inc.) as of
March 31, 1995, and the related statement of operations for the
year then ended and the statements of changes in net assets for
each of the years in the two-year period ended March 31, 1995, and
the financial highlights for each of the years in the ten-year
period ended March 31, 1995. These financial statements and the
financial highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and
sold but not received or delivered, we request confirmations from
brokers, and where replies are not received, we carry out other
appropriate auditing procedures. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Strategy Aggressive Fund at March 31, 1995, and the results of its
operations for the year then ended and the changes in its net
assets for each of the years in the two-year period ended March 31,
1995, and the financial highlights for the periods stated in the
first paragraph above, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
May 5, 1995
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<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Strategy Aggressive Fund
March 31, 1995
______________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $668,914,512) $813,978,918
Dividends and accrued interest receivable 425,824
Receivable for investment securities sold 36,980,442
_____________________________________________________________________________________________________________
Total assets 851,385,184
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 699,155
Payable for investment securities purchased 66,678,515
Accrued investment management and services fee 154,875
Accrued distribution fee 179,582
Accrued service fee 57,447
Accrued transfer agency fee 66,483
Accrued administrative services fee 12,906
Other accrued expenses 131,286
_____________________________________________________________________________________________________________
Total liabilities 67,980,249
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $783,404,935
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 525,756
Additional paid-in capital 636,697,337
Accumulated net realized gain (Notes 1) 4,117,436
Unrealized appreciation 145,064,406
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $783,404,935
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $ 7,277,300
Class B $776,127,615
Class Y $ 20
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock: Class A shares 488,227 $ 14.91
Class B shares 52,087,417 $ 14.90
Class Y shares 1 $ 14.89
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
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PAGE 10
Statement of operations
IDS Strategy Aggressive Fund
Year ended March 31, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income:
Interest $ 5,691,035
Dividends (net of foreign taxes withheld of $20,919) 3,942,113
_____________________________________________________________________________________________________________
Total income 9,633,148
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 4,322,860
Distribution fee--Class B 5,491,780
Transfer agency fee 1,982,253
Incremental transfer agency fee--Class B 4,152
Service fee 45,572
Administrative services fee 12,906
Compensation of directors 19,501
Compensation of officers 7,718
Custodian fees 123,934
Postage 186,595
Registration fees 115,699
Reports to shareholders 110,087
Audit fees 17,500
Administrative 6,460
Other 11,404
_____________________________________________________________________________________________________________
Total expenses 12,458,421
_____________________________________________________________________________________________________________
Investment loss -- net (2,825,273)
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions 4,230,074
(including gain of $650 from foreign currency transactions)(Note 3)
Net change in unrealized appreciation or depreciation 36,275,562
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 40,505,636
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $ 37,680,363
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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PAGE 11
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Strategy Aggressive Fund
Year ended March 31,
_____________________________________________________________________________________________________________
Operations and distributions 1995 1994
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment loss -- net $ (2,825,273) $ (6,219,834)
Net realized gain on investments and foreign currency 4,230,074 41,579,148
Net change in unrealized appreciation or depreciation 36,275,562 (12,150,355)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 37,680,363 23,208,959
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net realized gain
Class B (7,895,939) (57,232,536)
Excess distribution of realized gain (Note 1)
Class B -- (92)
_____________________________________________________________________________________________________________
Total distributions (7,895,939) (57,232,628)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 8,137,518 --
Class B shares 188,093,770 169,955,924
Class Y shares 20 --
Reinvestment of distributions at net asset value
Class B shares 7,859,857 57,007,903
Payments for redemptions
Class A shares (877,592) --
Class B shares (Note 2) (101,845,298) (122,745,185)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 101,368,275 104,218,642
_____________________________________________________________________________________________________________
Total increase in net assets 131,152,699 70,194,973
Net assets at beginning of year 652,252,236 582,057,263
_____________________________________________________________________________________________________________
Net assets at end of year $783,404,935 $652,252,236
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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PAGE 12
Notes to financial statements
IDS Strategy Aggressive Fund
___________________________________________________________________
1. Summary of significant accounting policies
The fund is a series of IDS Strategy Fund, Inc. and registered
under the Investment Company Act of 1940 (as amended) as a
diversified, open-end management investment company. The fund
offers Class A, Class B and Class Y shares. Class A shares, which
the fund began offering on March 20, 1995, are sold with a front-
end sales charge. Class B shares may be subject to a contingent
deferred sales charge and such shares automatically convert to
Class A after eight years. Class Y shares, which the fund also
began offering on March 20, 1995, have no sales charge and are
offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation
and other rights, and the same terms and conditions, except that
the level of distribution fee, transfer agency fee and service fee
(class specific expenses) charges differ among classes. Income,
expenses (other than class specific expenses) and realized and
unrealized gains or losses on investments are allocated to each
class of shares based upon its relative net assets. Significant
accounting policies followed by the fund are summarized below:
Valuation of securities
All securities are valued at the close of each business day.
Securities traded on national securities exchanges or included in
national market systems are valued at the last quoted sales price;
securities for which market quotations are not readily available
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, the fund may buy or write options traded on any U.S. or
foreign exchange or in the over-the-counter market where the
completion of the obligation is dependent upon the credit standing
of the other party. The fund also may buy and sell put and call
options and write covered call options on portfolio securities and
may write cash-secured put options. The risk in writing a call
option is that the fund gives up the opportunity of profit if the
market price of the security increases. The risk in writing a put
option is that the fund may incur a loss if the market price of the
security decreases and the option is exercised. The risk in buying
an option is that the fund pays a premium whether or not the option
is exercised. The fund also has the additional risk of not being
able to enter into a closing transaction if a liquid secondary
market does not exist.<PAGE>
PAGE 13
Option contracts are valued daily at the closing prices on their
primary exchanges and unrealized appreciation or depreciation is
recorded. The fund will realize a gain or loss upon expiration or
closing of the option transaction. When an option is exercised, the
proceeds on sales for a written call option, the purchase cost for
a written put option or the cost of a security for a purchased put
or call option is adjusted by the amount of premium received or
paid.
Futures transactions
In order to gain exposure to or protect itself from changes in the
market, the fund may buy and sell stock index futures contracts
traded on any U.S. or foreign exchange. The fund also may buy or
write put and call options on these futures contracts. Risks of
entering into futures contracts and related options include the
possibility that there may be an illiquid market and that a change
in the value of the contract or option may not correlate with
changes in the value of the underlying securities.
Upon entering into a futures contract, the fund is required to
deposit either cash or securities in an amount (initial margin)
equal to a certain percentage of the contract value. Subsequent
payments (variation margin) are made or received by the fund each
day. The variation margin payments are equal to the daily changes
in the contract value and are recorded as unrealized gains and
losses. The fund recognizes a realized gain or loss when the
contract is closed or expires.
Foreign currency translations and
foreign currency contracts
Securities and other assets and liabilities denominated in foreign
currencies are translated daily into U.S. dollars at the closing
rate of exchange. Foreign currency amounts related to the purchase
or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in
foreign exchange rates on realized and unrealized security gains or
losses is reflected as a component of such gains or losses. In the
statement of operations, net realized gains or losses from foreign
currency transactions may arise from sales of foreign currency,
closed forward contracts, exchange gains or losses realized between
the trade date and settlement dates on securities transactions, and
other translation gains or losses on dividends, interest income and
foreign withholding taxes.
The fund may enter into forward foreign currency exchange contracts
for operational purposes and to protect against adverse exchange
rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the fund and the
resulting unrealized appreciation or depreciation are determined
using foreign currency exchange rates from an independent pricing
service. The fund is subject to the credit risk that the other
party will not complete the obligations of the contract.
<PAGE>
PAGE 14
Federal taxes
Since the fund's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to shareholders, no
provision for income or excise taxes is required.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes primarily because
of the deferral of losses on certain futures contracts, the
recognition of certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred due to "wash
sale" transactions. The character of distributions made during the
year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax
purposes. 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, undistributed net investment
income has been increased by $2,825,273 and accumulated net
realized gain has been decreased by $5,228, resulting in a net
reclassification adjustment to decrease paid-in-capital by
$2,820,045.
Dividends to shareholders
An annual dividend declared and paid by the end of the calendar
year from net investment income is reinvested in additional shares
of the fund at net asset value or payable in cash. Capital gains,
when available, are distributed along with the income dividend.
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 a prior agreement which ended March 19,1995, the
fund paid American Express Financial Corporation a fee for managing
its investments, recordkeeping and other specified services. The
fee was a percentage of the fund's average daily net assets
consisting of a group asset charge in reducing percentages from
0.46% to 0.32% annually on the combined net assets of all non-money
market funds in the IDS MUTUAL FUND GROUP and an individual annual
asset charge of 0.23% of average daily net assets.
<PAGE>
PAGE 15
Also under the prior agreement, the fund paid American Express
Financial Corporation 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% was for distribution of
fund shares and the balance of the fee, up to 0.25%, represented
service fees for personal services rendered to shareholders of the
fund.
Also under the terms of the prior agreement, the fund paid American
Express Financial Corporation a transfer agency fee at an annual
rate of $16 per shareholder account. The transfer agency fee was
reduced by earnings on monies pending shareholder redemptions.
Effective March 20, 1995, when the fund began offering multiple
classes of shares, the fund entered into agreements with American
Express Financial Corporation for managing its portfolio, providing
administrative services and serving as transfer agent as follows:
Under its Investment Management Services Agreement, American
Express Financial Corporation determines which securities will be
purchased, held or sold. The management fee is a percentage of the
fund's average daily net assets in reducing percentages from 0.6%
to 0.5% annually. Under an Administrative Services Agreement, the
fund pays American Express Financial Corporation for administration
and accounting services at a percentage of the fund's average
daily net assets in reducing percentages from 0.05% to 0.03%
annually.
Under a separate Transfer Agency Agreement, American Express
Financial Corporation maintains shareholder accounts and records.
The fund pays American Express Financial Corporation an annual fee
per shareholder account for this service as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the fund entered into agreements
with American Express Financial Advisors Inc. for distribution and
shareholder servicing - related services as follows: Under the
Distribution Agreement, the fund pays a distribution fee at an
annual rate of 0.75% of the fund's average daily net assets
attributable to Class B shares for distribution-related services.
Under a Shareholder Service Agreement, the fund pays a fee for
service provided to shareholders by financial advisors and other
servicing agents. The fee is calculated at a rate of 0.175% of the
fund's average daily net assets attributable to Class A and Class B
shares.
American Express Financial Corporation will assume and pay any
expenses (except taxes and brokerage commissions) that exceed the
most restrictive applicable state expense limitation.
<PAGE>
PAGE 16
Sales charges deducted by American Express Financial Advisors Inc.
for distributing fund shares were $10,693 for Class A and $638,457
for Class B for the year ended March 31, 1995. The fund also pays
custodian fees to American Express Trust Company, an affiliate of
American Express Financial Corporation.
The fund has a retirement plan for its independent directors. Upon
retirement, directors receive monthly payments equal to one-half of
the retainer fee for as many months as they served as directors up
to 120 months. There are no death benefits. The plan is not funded
but the fund recognizes the cost of payments during the time the
directors serve on the board. The retirement plan expense amounted
to $8,356 for the year ended March 31, 1995.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $719,722,629 and $662,330,040,
respectively, for the year ended March 31, 1995. Realized gains and
losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with American
Express Financial Corporation were $77,714 for the year ended March
31, 1995.
Income from securities lending amounted to $98,117 for the year
ended March 31, 1995. The risks to the fund of securities lending
are that the borrower may not provide additional collateral when
required or return the securities when due.
___________________________________________________________________
4. Capital share transactions
Transactions in shares of capital stock for the periods indicated
are as follows:
<TABLE>
<CAPTION>
________________________________________________________________________________________
Period ended March 31, 1995 Year ended
3/31/94
Class A* Class B Class Y* Class B
________________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 546,769 13,396,433 1 11,014,310
Issued for reinvested
distributions -- 560,846 -- 3,765,876
Redeemed (58,542) (7,193,696) -- (7,951,989)
________________________________________________________________________________________
Net increase 488,227 6,763,583 1 6,828,197
________________________________________________________________________________________
*Commencement of operations was March 20, 1995 for Class A and March 28, 1995
for Class Y.
</TABLE>
___________________________________________________________________
5. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on page 6 of the prospectus.
<PAGE>
PAGE 17
<TABLE>
<CAPTION>
Investments in securities
IDS Strategy Aggressive Fund (Percentages represent value of
March 31, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (85.0%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Banks and savings & loans (1.5%)
Bank of Boston 130,400 $ 3,879,400
First Chicago 79,300 3,974,913
MBNA 144,300 4,184,700
____________
Total 12,039,013
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.1%)
Canandaigua Wine 23,600 (b) 991,200
_____________________________________________________________________________________________________________________________
Building materials (0.3%)
Tyco Intl 49,100 2,596,163
_____________________________________________________________________________________________________________________________
Chemicals (1.5%)
Ecolab 299,000 7,250,750
Morton Intl 143,600 4,164,400
_____________
Total 11,415,150
_____________________________________________________________________________________________________________________________
Communications equipment (5.4%)
ADC Telecommunications 151,800 (b) 4,478,100
Andrew 142,500 (b) 5,806,875
DSC Communications 299,100 (b) 9,739,444
Northern Telecom 97,700 3,700,388
Scientific-Atlanta 348,600 8,148,525
Tellabs 177,700 (b) 10,351,025
____________
Total 42,224,357
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 18
Computers & office equipment (20.3%)
Adobe Systems 252,100 12,478,950
AutoDesk 280,700 11,824,487
Broderbund Software 34,500 (b) 1,789,687
Ceridian 183,500 6,124,313
Cisco Systems 403,400 (b) 15,379,625
Compaq Computer 292,700 (b) 10,098,150
Computer Sciences 168,100 8,299,938
Compuware 127,500 (b) 4,717,500
Danka Business Systems 100,000 (b) 2,625,000
First Financial Management 75,000 5,418,750
Informix 109,200 (b) 3,753,750
Microsoft 70,000 (b) 4,978,750
Oracle Systems 562,200 (b) 17,568,750
Parametric Technology 518,100 (b) 20,724,000
Silicon Graphics 150,000 (b) 5,325,000
Sybase 339,300 (b) 13,572,000
Synopsys 128,800 (b) 6,150,200
3Com 138,700 (b) 7,853,887
_____________
Total 158,682,737
_____________________________________________________________________________________________________________________________
Electronics (7.9%)
Applied Materials 148,600 (b) 8,191,575
Cypress Semiconductor 27,100 (b) 755,412
Integrated Device Technology 146,600 (b) 5,424,200
Intel 193,200 16,397,850
Linear Technology 165,000 9,240,000
LSI Logic 185,600 (b) 9,744,000
Sensormatic Electric 66,400 1,859,200
Vishay Intertechnology 189,000 10,607,625
_____________
Total 62,219,862
_____________________________________________________________________________________________________________________________
Financial services (2.5%)
Dean Witter 92,000 3,749,000
First USA 162,100 6,808,200
Household Intl 97,700 4,249,950
Paychex 106,200 4,885,200
____________
Total 19,692,350
_____________________________________________________________________________________________________________________________
Health care (9.4%)
Abbott Laboratories 99,200 3,534,000
Amgen 97,500 (b) 6,569,062
Cardinal Health 214,000 10,191,750
Forest Labs 137,400 (b) 6,543,675
Genentech 179,100 (b) 8,395,312
IDEXX Laboratories 241,100 (b) 10,005,650
Medtronic 117,200 8,130,750
Pfizer 154,700 13,265,525
Scherer (RP) 89,000 (b) 4,472,250
Stryker 57,500 2,630,625
____________
Total 73,738,599
_____________________________________________________________________________________________________________________________
Health care services (11.7%)
Foundation Health 122,900 (b) 4,009,612
HBO 240,900 10,479,150
Healthsource 176,000 (b) 8,338,000
HEALTHSOUTH 186,300 (b) 7,568,438
Humana 488,400 (b) 12,515,250
Oxford Health Plans 79,600 (b) 4,457,600
Service Corp Intl 200,100 5,602,800
United Healthcare 380,600 17,793,050
U.S. HealthCare 394,000 17,434,500
Value Health 103,700 (b) 3,966,525
___________
Total 92,164,925
_____________________________________________________________________________________________________________________________
Household products (0.5%)
Duracell Intl 89,200 3,991,700
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.0%)
General Signal 53,700 1,913,062
WMX Technologies 212,400 5,841,000
___________
Total 7,754,062
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 19
Insurance (3.2%)
Coventry 412,200 (b) 11,953,800
Equitable of Iowa 115,000 3,895,625
UNUM 199,200 9,013,800
____________
Total 24,863,225
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.2%)
Cobra Golf 57,400 (b) 1,607,200
_____________________________________________________________________________________________________________________________
Media (2.3%)
General Instrument 116,400 (b) 4,044,900
Multimedia 114,200 (b) 4,325,325
Tele-Communications Cl A 180,000 (b) 3,780,000
Viacom 123,100 (b) 5,508,725
____________
Total 17,658,950
_____________________________________________________________________________________________________________________________
Metals (0.8%)
Nucor 111,500 6,271,875
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.6%)
Alco Standard 86,300 6,256,750
Robert Half Intl 248,600 (b) 6,339,300
____________
Total 12,596,050
_____________________________________________________________________________________________________________________________
Paper & packaging (0.3%)
Crown Cork & Seal 46,100 (b) 2,022,637
_____________________________________________________________________________________________________________________________
Restaurants & lodging (1.3%)
Brinker Intl 195,800 (b) 3,255,175
Hospitality Franchise System 58,300 1,865,600
Starbucks 196,900 (b) 4,725,600
____________
Total 9,846,375
_____________________________________________________________________________________________________________________________
Retail (7.3%)
Corporate Express 235,000 (b) 6,227,500
CUC Intl 82,600 (b) 3,211,075
Gymboree 215,000 (b) 5,455,625
Home Depot 238,500 10,553,625
Office Depot 281,250 (b) 6,855,469
OfficeMax 215,000 (b) 5,509,375
Pep Boys-Manny Moe & Jack 261,100 8,094,100
PETsMART 42,800 (b) 1,498,000
Revco D.S. 64,100 (b) 1,474,300
Tommy Hilfiger 190,000 (b) 4,180,000
Viking Office Products 137,200 (b) 4,253,200
_____________
Total 57,312,269
_____________________________________________________________________________________________________________________________
Utilities-gas (0.6%)
Enron 140,000 4,620,000
_____________________________________________________________________________________________________________________________
Utilities-telephone (2.0%)
AirTouch Communications 254,300 (b) 6,929,675
ALC Communications 155,000 (b) 5,289,375
MFS Communications 100,800 (b) 3,528,000
____________
Total 15,747,050
_____________________________________________________________________________________________________________________________
Foreign (3.3%)(c)
Ericsson LM Cl B ADR 92,900 5,742,381
Industrie Natuzzi 60,100 2,216,188
Nokia Preferred 166,300 12,223,050
Tele Danmark ADR 155,100 4,110,150
TeleWest Communications ADR 61,400 (b) 1,680,825
____________
Total 25,972,594
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $529,812,734) $666,028,343
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 20
Preferred stock & other (1.9%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Jan Bell
Warrants 2,473 (d) $ --
SAP 18,800 14,619,933
_____________________________________________________________________________________________________________________________
Total preferred stock & other
(Cost: $5,752,085) $ 14,619,933
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (16.6%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
<S> <C> <C> <C>
Commercial paper (16.3%)
Amer General
04-24-95 6.01% $4,300,000 (e) $ 4,283,599
Aon
04-03-95 5.99 900,000 899,702
04-03-95 6.00 5,400,000 5,398,209
04-05-95 5.99 2,200,000 2,198,543
04-07-95 6.00 3,900,000 3,896,120
Becton Dickinson
04-18-95 6.01 3,500,000 3,490,133
BellSouth Telecommunications
04-27-95 6.02 2,000,000 1,991,348
BOC Group
04-17-95 6.01 4,700,000 4,687,529
Cafco
04-06-95 6.01 1,900,000 (e) 1,898,425
04-10-95 6.01 5,000,000 4,992,525
04-13-95 6.01 5,000,000 (e) 4,990,033
05-05-95 6.02 3,400,000 (e) 3,380,798
Cargill
04-18-95 6.00 3,700,000 3,689,569
Ciesco LP
04-03-95 6.00 4,000,000 (e) 3,998,673
Consolidated Rail
05-05-95 6.10 4,500,000 (e) 4,474,330
Emerson Electric
04-11-95 5.98 4,900,000 4,891,901
Lincoln Natl
04-19-95 6.02 4,000,000 (e) 3,988,040
Morgan Stanley Group
04-12-95 6.04 6,000,000 5,989,000
Norfolk Southern
04-24-95 6.00 2,164,000 (e) 2,155,746
PACCAR Financial
04-17-95 6.00 4,000,000 3,989,387
04-18-95 6.00 4,700,000 4,686,750
Paribas Finance
04-20-95 6.00 6,000,000 5,981,095
Penney (JC) Funding
04-24-95 6.01 6,400,000 6,375,589
PepsiCo
04-04-95 5.98 6,000,000 5,997,025
04-13-95 5.99 5,500,000 5,489,092
05-02-95 6.03 900,000 (e) 895,350
Pfizer
04-03-95 5.98 6,900,000 (e) 6,897,719
04-12-95 6.00 3,800,000 (e) 3,793,068
Pitney Bowes Credit
04-25-95 6.03 4,000,000 3,983,029
SmithKline Beecham
05-08-95 6.03 900,000 894,468
Southwestern Bell Telephone
05-04-95 6.05 2,500,000 2,486,204
USAA Capital
04-11-95 6.00 4,900,000 4,891,874
____________
Total 127,654,873
<PAGE>
PAGE 21
_____________________________________________________________________________________________________________________________
Letter of credit (0.3%)
First Natl Bank Chicago-
Commed Fuel
04-13-95 6.01 2,800,000 2,794,419
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $130,450,343) $130,449,292
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Option purchased (0.4%)
_____________________________________________________________________________________________________________________________
Issuer Number Exercise Expiration Value(a)
of contracts price date
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
NASDAQ 100-Put 4,500 $420 June 1995 $ 2,881,350
_____________________________________________________________________________________________________________________________
Total option purchased
(Cost: $2,899,350) $ 2,881,350
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $668,914,512)(f) $813,978,918
_____________________________________________________________________________________________________________________________
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) Presently negligible market value.
(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, 1995, the cost of securities for federal income tax purposes was
$668,914,512 and the aggregate gross unrealized appreciation and depreciation
based on that cost was:
Unrealized appreciation $150,019,448
Unrealized depreciation (4,955,042)
_______________________________________________________________________________________________
Net unrealized appreciation $145,064,406
_______________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 22
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories, or the equivalent, and in
government bonds.
(icon of) greek column
<PAGE>
PAGE 23
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the
timely payment of principal and interest by the U.S. government,
its agencies and instrumentalities. Seeks a high level of current
income and safety of principal consistent with its type of
investments.
(icon of) federal building
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
<PAGE>
PAGE 24
Growth and income investments
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20% of
its assets in the U.S. market.
(icon of) three flags
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stock of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
<PAGE>
PAGE 25
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high
current income and, secondarily, to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
<PAGE>
PAGE 26
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth potential
due to superiority in technology, marketing or management. The
fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial advisor or writing to American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.
<PAGE>
PAGE 27
Federal income tax information
IDS Strategy Aggressive Fund
___________________________________________________________________
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. Distributions prior to Jan. 1, 1995 were
reported to you on a Form 1099-DIV, Dividends and Distributions,
last January. Shareholders should consult a tax advisor on how to
report distributions for state and local purposes.
IDS Strategy Aggressive Fund
Fiscal year ended March 31, 1995
Class B
Capital gain distribution taxable as long-term capital gain.
Payable date Per share
Dec. 30, 1994 $0.15427
Total distribution $0.15427
<PAGE>
PAGE 28
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Strategy Aggressive Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 29
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.
