<PAGE>
PAGE 1
FINANCIAL PLANNING
IDS International Fund
1993 annual report
(prospectus enclosed)
(Icon of) Three flags
The goal of IDS International Fund, Inc. is long-term growth of
capital. The fund invest primarily in common stocks and securities
convertible into common stocks of foreign issuers.
IDS
An American Express company
AMERICAN
EXPRESS
Distributed by IDS Financial Services Inc.
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PAGE 2
(Icon of) Three flags
A world of opportunity
Ther's a new recognition among investors that the stock market
extends beyond Wall Street. Opportunity abounds in other markets,
from Tokyo, London and Frankfurt to Singapore, Mexico and Hong
Kong. Ignoring these opportunities may mean missing out on
tremendous world economic growth in the years ahead. International
Fund focuses on finding the markets that offers the greatest
current potential to investors. With about two-thirds of the
world's stock market value currently based outside of the United
States, American investors now have an even greater opportunity to
diversity their portfolios beyond our boundaries.
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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.
1993 annual report
From the president 4
From the portfolio manager 4
Ten largest holdings 6
Long-term performance 7
Making the most of your fund 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 19
IDS mutual funds 24
Federal income tax information 27
1993 prospectus
The fund in brief
Goal 3p
Types of fund investments 3p
Manager and distributor 3p
Portfolio manager 3p
Sales charge and fund expenses
Sales charge 4p
Operating expenses 4p
Performance
Financial highlights 5p
Total returns 6p
Key terms 7p
How to buy, exchange or sell shares
How to buy shares 8p
How to exchange shares 10p
How to sell shares 10p
Reductions of the sales charge 14p
Waivers of the sales charge 16p
Special shareholder services
Services 17p
Quick telephone reference 17p
Distributions and taxes
Dividend and capital gain distributions 18p
Reinvestments 19p
Taxes 20p<PAGE>
PAGE 4
Investment policies
Facts about investments and their risks 23p
Valuing assets 26p
How the fund is organized
Shares 27p
Voting rights 27p
Shareholder meeting 27p
Directors and officers 27p
Investment manager and transfer agent 29p
Distributor 30p
About IDS
General information 31p
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PAGE 5
To our shareholders
(Photo of) William Pearce, President of the fund
(Photo of) Peter Lamaison, Leader of portfolio management team
From the president
As you read this report, you'll find it is very different from
those you have 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 manager's letter, which describes the events and
investment strategies that most influenced the fund's performance
during the year. The prospectus includes essential data such as
the fund's investment policies and service information.
In redesigning our reports, we asked IDS financial planners and
some of you for suggestions and recommendations along the way. We
believe you will find the results of our work worthwhile.
William R. Pearce
From the portfolio management team
The past 12 months was an excellent period for international
investors and an encouraging turnabout from the poor performance
of foreign markets in the previous year. Of the 22 markets we
monitor, all finished in positive territory . As a group,
Southeast Asia led the advance, with Malaysia, Singapore and Hong
Kong turning in exceptional gains that ranged up to 77%.
Prior to this year's upsurge, most markets were depressed by weak
economies and poor corporate profit expectations. The exceptions
were the United States, whose economy showed signs of improvement,
and Southeast Asia, where economies continued to exhibit sustantial
strength.
Japan strong
On a country basis, our greatest exposure during the year was to
Japan. Although the Japanese market's gain was average when
compared to the dramatic gains experienced in other markets on a
worldwide basis, a surge in the value of the yen (the local
currency) provided U.S. investors with the best total return of the
major markets. (Appreciating foreign currencies automatically
benefit U.S. investors because gains in foreign markets are
inflated when translated into U.S. dollars.) Our next largest
portfolio percentages were in the United Kingdom and France,
respectively. Thsse markets rose less than some others, but still
gave us double-digit gains despite being tempered by, in this case,
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PAGE 6
depreciating local currencies. As a group, the countries of
Southeast Asia comprised a healthy complement in the portfolio and
provided an extra performance boost.
The most notable portfolio change took place last spring, when we
shifted some assets out of Japan and into Europe to take advantage
of the effects of an expected interest rate decline in Europe to
take advantage of the effects of an unexpected interest rate
decline in Europe. The strategy was successful, as falling rates
led to rising European stock markets. Near the end of the fiscal
year, we partially reversed the process, thereby increasing our
exposure to Japan, where stock prices had come down to levels that
made buying stocks there more attractive.
Similar scenario
Although the economies in Japan and continental Europe currently
show little sign of rapid revival, the outlook has brightened from
some months ago. Thanks to a lack of inflationary pressures,
interest rates outside the United States should move lower in the
months ahead. This should allow many foreign economies to climb
out of recession, thereby boosting corporate profits. In addition,
lower rates should prompt investors to move more money from low-
yielding cash deposits into their local stock markets, similar to
what has happened in U.S. markets.
The largest percentage of portfolio assets remains in Japan, where
we think the economy is on the verge of improvement. The European
economies may take longer to recover, and we may reduce our
exposure there in favor of Japan. The economies and stock markets
in Southeast Asia continue to show outstanding growth. Our only
concern there is that stock prices may reach unjustifiable levels,
which could cause some retreat in the markets. In sum, we remain
optimistic about most global markets, assuming the economies
respond positively during 1994.
Peter Lamaison
12-month performance
(All figures per share)
Net asset value (NAV)
Oct. 31, 1993 $10.00
Oct. 31, 1992 $ 7.94
Increase $ 2.06
Distributions
Nov. 1, 1992 - Oct. 31, 1993
From income $0.01
From capital gains $0.19
Total distributions $0.20
Total return* +29.2%
*If you purchased shares in the fund during this period, your
return also would have been affected by the sales charge, as
described in the prospectus.
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PAGE 7
Your fund's ten largest holdings
<TABLE>
<CAPTION>
_______________________________________________________________________________________________
Percent Value
(of fund's net assets) (as of Oct. 31, 1993)
_______________________________________________________________________________________________
<S> <C> <C>
Rank Organisation (United Kingdom) 2.21% $9,726,556
A major leisure-time company with interests in film,
television, travel and lodging.
Lafarge-Copee (France) 1.83 8,056,113
One of the world's leaders in construction materials,
predominatly cement, concrete and aggregates.
Swiss Bank Corp. (Switzerland) 1.76 7,740,759
One of the largest Swiss banks, with an international
investment-banking business centered primarily in London
and New York.
Sumitomo Electric Industries (Japan) 1.73 7,616,700
Japan's leading wire and cable manufacturer, it dominates
the market for optical fiber cable used in communications.
Barclays (United Kingdom) 1.72 7,541,387
The largest retail bank in the United Kingdom,
incorperating stock brokerage, life insurance, pension and
credit-card business.
Elsevier (Netherlands) 1.68 7,389,047
The world's most profitable publisher, operating around
the globe.
Total Petroleum Class B (France) 1.50 6,582,834
France's second-largest integrated oil company.
Siebe (United Kingdom) 1.48 6,512,800
A United Kingdom engineering company with significant U.S.
presence via Foxboro in control devices and process
systems.
Telefonica (Spain) 1.45 6,358,594
Spain's monopoly operator of basic telepone and telex
services.
Munich Re (Germany) 1.43 6,286,907
The world's largest reinsurer, with a 25% cross-holding
in Allianz.
</TABLE>
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PAGE 8
Your fund's long-term performance
How your $10,000 has grown in IDS International Fund
$40,000
$34,877
International Fund
$30,000
Lipper International
Fund Index
World Index
$20,000
Lipper Growth
Fund Index
$9,500
84 85 86 87 88 89 90 91 92 93
Assumes: Holding period from 12/1/84 to 10/31/93. Returns do no
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 $15,743.
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 Zealand
and the Far East, is widely recognized by investors as the
measurement index for portfolios of global securities.
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.
If you invested $10,000 in IDS International Fund and held the fund
until Oct. 31, 1993, reinvesting all dividends, your investment
would have grown to $34,877.
On the chart above you can see how the fund's total return compared
to two widely cied performance indexes, the World Index and the
Lipper International Fund Index. In comparing International Fund
to the two indexes, you should take into account of the fact that
the fund's performance reflects the maximum sales charge of 5%,
while such charges are not reflected in the performance of the
indexes. If you were actually to buy either individual stocks or
growth mutual funds, any sales charges that you pay would reduce
your total return as well.
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PAGE 9
Average annual total return
(as of Oct. 31, 1993)
1 year 5 years Since inception*
+22.76% +7.08% +14.87%
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures include the effect of the 5% sales charge. Past
performance is no guarantee of future result.
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<PAGE> 10
Making the most of you fund
Build you assets systematically
To keep your assets growing steadily, one of the best ways to use
the fund is 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 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 16 6.25
Mar 100 9 11.11
Apr 100 5 20.00
May 100 7 14.29
June 100 10 10.00
July 100 15 6.67
Aug 100 20 5.00
Sept 100 17 5.88
Oct 100 12 8.33
(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 August)and fewer shares when the per
share market price is high
You have paid an average price of only $10.81 per share over the 10
months, while the average market price actually was $13.10.
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold
by the fund exceed losses
o you receive income when the fund's stock dividends, interest
and short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.<PAGE>
PAGE 11
Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS International Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS International Fund, Inc. as of October 31, 1993, and the
related statement of operations for the year then ended and the
statements of changes in net assets for each of the years in the
two-year period ended October 31, 1993, and the financial
highlights for each of the years in the eight-year period ended
October 31, 1993, and for the period from November 15, 1984
(commencement of operations), to October 31, 1985. 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 IDS
International Fund, Inc. at October 31, 1993, and the results of
its operations for the year then ended and the changes in its net
assets for each of the years in the two-year period ended October
31, 1993, and the financial highlights for the periods stated in
the first paragraph above, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick
Minneapolis, Minnesota
December 3, 1993
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<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS International Fund, Inc.
Oct. 31, 1993
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $375,069,182) $442,017,097
Cash in bank on demand deposit 2,532,884
Dividends receivable 1,875,105
Receivable for investment securities sold 4,014,454
Receivable for foward foreign currency contracts held, at value (Notes 1 and 5) 94,228,262
U.S. government securities held as collateral (Note 4) 2,309,660
_____________________________________________________________________________________________________________
Total assets 546,977,462
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Payable for investment securities purchased 1,162,440
Payable for forward foreign currency contracts held, at value (Notes 1 and 5) 93,382,127
Payable upon return of securities loaned (Note 4) 12,350,780
Accrued investment management and services fee 277,349
Accrued distribution fee 32,383
Accrued transfer agency fee 80,957
Other accrued expenses 150,292
_____________________________________________________________________________________________________________
Total liabilities 107,436,328
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $439,541,134
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 43,955,599 shares $ 439,556
Additional paid-in capital 359,513,181
Undistributed net investment income 4,457,967
Accumulated net realized gain on investments (Note 1) 7,336,380
Unrealized appreciation of investments (Note 5) 67,794,050
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $439,541,134
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 10.00
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
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PAGE 13
<TABLE>
<CAPTION>
Financial statements
Statement of operations
IDS International Fund, Inc.
Year ended Oct. 31, 1993
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $758,107) $ 6,010,129
Interest 597,715
_____________________________________________________________________________________________________________
Total income 6,607,844
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 2,450,648
Distribution fee 316,971
Transfer agency fee 789,361
Compensation of directors 13,839
Compensation of officers 3,056
Custodian fees 359,069
Postage 111,809
Registration fees 89,779
Reports to shareholders 28,872
Audit fees 31,000
Administrative 6,331
Other 19,004
_____________________________________________________________________________________________________________
Total expenses 4,219,739
_____________________________________________________________________________________________________________
Investment income -- net 2,388,105
_____________________________________________________________________________________________________________
Realized and unrealized gain on investments and foreign currency -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions (including gain of $1,973,515
from foreign currency translations) (Note 3) 9,586,806
Net change in unrealized appreciation or depreciation of investments 64,230,317
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 73,817,123
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $76,205,228
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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PAGE 14
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS International Fund, Inc.
Year ended Oct. 31,
_____________________________________________________________________________________________________________
Operations and distributions 1993 1992
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 2,388,105 $ 1,473,318
Net realized gain on investments and foreign currency 9,586,806 4,083,165
Net change in unrealized appreciation or
depreciation of investments 64,230,317 (20,166,480)
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations 76,205,228 (14,609,997)
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income -- (1,328,547)
Net realized gain on investments (5,303,873) (2,183,778)
Excess distribution of realized gain (Note 1) (400,127) --
_____________________________________________________________________________________________________________
Total distributions (5,704,000) (3,512,325)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
24,150,389 and 9,598,555 shares (Note 2) 218,558,554 80,623,485
Net asset value of 705,935 and 401,578 shares
issued in reinvestment of distributions 5,651,024 3,470,791
Payments for redemptions of
8,543,243 and 9,347,069 shares (74,539,734) (78,776,446)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
16,313,081 and 653,064 shares 149,669,844 5,317,830
_____________________________________________________________________________________________________________
Total increase (decrease) in net assets 220,171,072 (12,804,492)
_____________________________________________________________________________________________________________
Net assets at beginning of year 219,370,062 232,174,554
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$4,457,967 and $441,512) $439,541,134 $219,370,062
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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PAGE 15
Notes to financial statements
IDS International Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
The fund is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company.
Significant accounting policies followed by the fund are summarized
below:
Valuation of securities
All securities are valued at the close of each business day.
Securities traded on national securities exchanges or included in
national market systems are valued at the last quoted sales price;
securities for which market quotations are not readily available
are valued at fair value according to methods selected in good
faith by the board of directors. Determination of fair value
involves, among other things, reference to market indexes, matrixes
and data from independent brokers. Short-term securities maturing
in more than 60 days from the valuation date are valued at the
market price or approximate market value based on current interest
rates; those maturing in 60 days or less are valued at amortized
cost.
Foreign currency translations and
forward foreign currency contracts
Securities and other assets and liabilities denominated in foreign
currencies are translated daily into U.S. dollars at the closing
rate of exchange. Foreign currency amounts related to the purchase
or sale of securities and income and 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.
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PAGE 16
Notes to financial statements
IDS International Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
The fund may enter into forward foreign currency exchange contracts
for operational purposes and to protect against adverse exchange
rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the fund and the
resulting unrealized appreciation or depreciation are determined
using foreign currency exchange rates from an independent pricing
service. The fund is subject to the credit risk that the other
party will not complete the obligations of the contract.
Federal taxes
Since the fund's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to shareholders, no
provision for income or excise taxes is required.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes primarily because
of the deferral of losses on certain futures contracts, the
recognition of certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred due to "wash
sale" transactions. The character of distributions made during the
year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax
purposes. 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 $1,628,350 and accumulated net
realized gain has been reduced by $1,669,892 resulting in a net
reclassification adjustment to increase paid-in-capital by $41,542.<PAGE>
PAGE 17
Notes to financial statements
IDS International Fund, Inc.
___________________________________________________________________
1. Summary of significant accounting policies
Dividends to shareholders
An annual dividend declared and paid at 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 or upon receipt of ex-dividend notification in the
case of certain foreign securities. Interest income including
level-yield amortization of premium and discount, is accrued daily.
___________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991, the fund pays IDS
Financial Corporation (IDS) a fee for managing its investments,
recordkeeping and other specified services. The fee is a
percentage of the fund's average daily net assets consisting of a
group asset charge in reducing percentages from 0.46% to 0.32%
annually on the combined net assets of all non-money market funds
in the IDS MUTUAL FUND GROUP and an individual annual asset charge
of 0.46% of average daily net assets. The fee is adjusted upward
or downward by a performance incentive adjustment based on the
fund's average daily net assets over a rolling 12-month period as
measured against the change in the Lipper International Fund Index.
The maximum adjustment is 0.12% of the fund's average daily net
assets after deducting 1% from the performance difference. If the
performance difference is less than 1%, the adjustment will be
zero. The adjustment decreased the fee by $27,346 for the year
ended Oct. 31, 1993. From its fees, IDS pays IDS International,
Inc. a subadvisory fee equal to 0.35% of the fund's average daily
net assets.
The fund also pays IDS a distribution fee at an annual rate of $6
per shareholder account and a transfer agency fee at an annual rate
of $15 per shareholder account. The transfer agency fee is reduced
by earnings on monies pending shareholder redemptions.
<PAGE>
PAGE 18
Notes to financial statements
IDS International Fund, Inc.
___________________________________________________________________
2. Expenses and sales charges
IDS will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges by IDS Financial Services Inc. for distributing fund
shares were $3,383,685 for the year ended Oct. 31, 1993. The fund
also pays custodian fees to IDS Bank & Trust, affiliate of IDS.
The fund has a retirement plan for its independent directors. Upon
retirement, directors receive monthly payments equal to one-half of
the retainer fee for as many months as they served as directors up
to 120 months. There are no death benefits. The plan is not
funded but the fund recognizes the cost of payments during the time
the directors serve on the board. The retirement plan expense
amounted to $8,445 for the year ended Oct. 31, 1993.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $321,046,894 and $174,061,165,
respectively, for the year ended Oct. 31, 1993. Realized gains and
losses are determined on an identified cost basis.
___________________________________________________________________
4. Lending of portfolio securities
At October 31, 1993, securities valued at $11,173,593 were on loan
to brokers. For collateral, the fund received $10,041,120 in cash
and U.S. government securities valued at $2,309,660. Income from
securities lending amounted to $131,994 for the year ended Oct. 31,
1993. The risks to the fund of securities lending are that the
borrower may not provide additional collateral when required or
return the securities when due.
<PAGE>
PAGE 19
Notes to financial statements
IDS International Fund, Inc.
___________________________________________________________________
5. Forward foreign currency contracts
At Oct. 31, 1993, the fund had entered into seven forward foreign
currency exchange contracts that obligate the fund to deliver
currencies at specified future dates. The unrealized appreciation
of $846,135 on these contracts is included in the accompanying
financial statements. The terms of the open contracts are as
follows:
<TABLE>
<CAPTION>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered Oct. 31, 1993 received Oct. 31, 1993
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Nov. 1, 1993 7,441,609 $ 962,941 962,568 $ 962,568
Hong Kong Dollar U.S. Dollar
Nov. 2, 1993 4,695,831 607,639 607,717 607,717
Hong Kong Dollar U.S. Dollar
Nov. 10, 1993 1,006,149 1,006,149 677,222 1,007,977
U.S. Dollar British Pound
Jan. 31, 1994 2,281,656,000 21,114,478 21,300,000 21,300,000
Japanese Yen U.S. Dollar
Jan. 31, 1994 2,158,156,800 19,971,614 20,400,000 20,400,000
Japanese Yen U.S. Dollar
Jan. 31, 1994 779,798,250 7,216,264 7,350,000 7,350,000
Japanese Yen U.S. Dollar
Feb. 28, 1994 4,588,446,000 42,503,042 42,600,000 42,600,000
Japanese Yen U.S. Dollar
___________ ___________
$93,382,127 $94,228,262
</TABLE>
___________________________________________________________________
6. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on page 5 of the prospectus.
<PAGE>
PAGE 20
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
____________________________________________________________________________________________________________________________
Common stocks (93.8%)
____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
____________________________________________________________________________________________________________________________
<S> <C> <C>
Australia (1.8%)
Energy (0.9%)
Broken Hill Proprietary 324,000 $ 3,822,228
____________________________________________________________________________________________________________________________
Metals (0.9%)
CRA 380,000 4,128,700
____________________________________________________________________________________________________________________________
Belgium (1.3%)
Chemicals (0.5%)
UCB 3,200 2,066,870
____________________________________________________________________________________________________________________________
Industrial equipment & services (0.8%)
Bekaert 6,100 3,298,679
____________________________________________________________________________________________________________________________
Canada (1.5%)
Communications equipment
BCE Mobile Telecom 147,150 (b) 4,676,553
Northern Telecom 60,000 1,710,000
___________
Total 6,386,553
____________________________________________________________________________________________________________________________
Finland (0.5%)
Banks and savings & loans
Kansallis-Osake-Pankki 934,000 2,317,254
____________________________________________________________________________________________________________________________
France (10.6%)
Automotive & related (0.3%)
Peugeot 11,000 1,224,245
____________________________________________________________________________________________________________________________
Banks and savings & loans (1.6%)
Compagnie de Suez 63,000 3,746,988
Credit Commercial de France 72,000 3,381,696
___________
Total 7,128,684
____________________________________________________________________________________________________________________________
Building materials (1.8%)
Lafarge-Copee 108,067 (c) 8,056,113
____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 21
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
____________________________________________________________________________________________________________________________
Common stocks (continued)
____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
____________________________________________________________________________________________________________________________
<S> <C> <C>
Electronics (0.9%)
Alcatel Alsthom Electricite 28,725 $ 3,793,337
____________________________________________________________________________________________________________________________
Energy (1.5%)
Total Petroleum Cl B 117,683 6,582,834
____________________________________________________________________________________________________________________________
Food (1.3%)
Eridania Beghin-Say 38,095 5,607,660
____________________________________________________________________________________________________________________________
Insurance (1.3%)
Union Assurances Paris 50,000 5,717,900
____________________________________________________________________________________________________________________________
Paper & packaging (0.5%)
Carnaud Metal Box 57,000 1,962,282
____________________________________________________________________________________________________________________________
Retail (0.5%)
Guilbert 8,388 2,019,822
____________________________________________________________________________________________________________________________
Soaps & cosmetics (0.9%)
L'Oreal 21,000 4,141,914
____________________________________________________________________________________________________________________________
Germany (3.8%)
Banks and savings & loans (0.4%)
Commerzbank 8,600 1,756,928
____________________________________________________________________________________________________________________________
Building materials (0.9%)
Hochtief 6,000 3,911,718
____________________________________________________________________________________________________________________________
Insurance (1.4%)
Munich Re 2,635 (b) 6,286,907
____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.7%)
Preussag 11,000 2,940,113
____________________________________________________________________________________________________________________________
Utilities (0.4%)
Veba 5,900 1,650,519
____________________________________________________________________________________________________________________________
Hong Kong (3.7%)
Financial services (0.9%)
Sun Hung Kai Properties 567,000 3,888,486
____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 22
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Multi-industry conglomerates (2.1%)
Hutchison Whampoa 948,000 $ 3,569,220
Wharf Holdings 1,500,000 5,530,500
____________
Total 9,099,720
_____________________________________________________________________________________________________________________________
Restaurants & lodging (0.1%)
Mandarin Oriental 413,000 480,732
_____________________________________________________________________________________________________________________________
Utilities (0.6%)
China Light & Power 423,000 2,845,944
_____________________________________________________________________________________________________________________________
Ireland (0.4%)
Building materials
CRH 340,000 1,659,540
_____________________________________________________________________________________________________________________________
Japan (29.9%)
Automotive & related (0.5%)
Hino Motors 324,000 (c) 2,107,944
_____________________________________________________________________________________________________________________________
Banks and savings & loans (1.1%)
Fuji Bank 125,000 2,757,250
Sumitomo Trust & Banking 144,000 1,946,880
____________
Total 4,704,130
_____________________________________________________________________________________________________________________________
Building Materials (1.1%)
Toto 230,000 4,648,760
_____________________________________________________________________________________________________________________________
Chemicals (2.0%)
Asahi Chemical Inds 294,000 1,842,204
Denki Kagaku Kogyo 884,000 (b,c) 2,675,868
Konica 673,000 4,465,355
_____________
Total 8,983,427
_____________________________________________________________________________________________________________________________
Communications equipment (1.1%)
Hitachi 624,000 4,958,304
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities
</TABLE>
<PAGE>
PAGE 23
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Common Stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Electronics (7.0%)
Dai Nippon Screen 438,000 $ 2,506,236
Hitachi Maxell 33,000 548,196
Kyocera 90,000 5,108,400
Matsushita Communications 236,000 5,466,940
Rohm 148,000 (c) 4,261,660
Sony 111,600 5,067,533
TDK 138,000 4,852,494
Toshiba 458,000 2,950,436
____________
Total 30,761,895
_____________________________________________________________________________________________________________________________
Financial (0.9%)
Daiwa Securities 291,000 3,732,948
_____________________________________________________________________________________________________________________________
Food (0.8%)
Nichirei 475,000 (b) 3,603,350
_____________________________________________________________________________________________________________________________
Industrial equipment & services (2.8%)
Fanuc 125,000 4,280,000
Matsushita Electric Inds 280,000 3,798,760
Mitsubishi Heavy Inds 705,000 4,391,445
____________
Total 12,470,205
______________________________________________________________________________________________________________________________
Industrial transportation (2.0%)
Nippon Express 478,000 (c) 4,587,844
NSK 775,000 4,341,550
______________
Total 8,929,394
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.4%)
Canon 118,000 (c) 1,622,618
_____________________________________________________________________________________________________________________________
Machinery (1.2%)
Chiyoda 94,000 (c) 3,019,092
Fuji Machine Mfg 110,000 2,131,910
____________
Total 5,151,002
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 24
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common Stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Media (0.6%)
Tokyo Broadcasting Systems 200,000 $ 2,731,800
_____________________________________________________________________________________________________________________________
Metals (1.0%)
Godo Steel 239,000 (c) 1,892,402
Nippon Steel 880,000 2,712,160
____________
Total 4,604,562
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.8%)
Kokusai Denshin Denwa 30,000 3,460,980
_____________________________________________________________________________________________________________________________
Real estate (0.4%)
Mitsui Fudosan 132,000 1,595,880
_____________________________________________________________________________________________________________________________
Retail (4.1%)
Aoyama Trading 46,000 3,447,332
Family Mart 59,000 3,757,238
Joshin Denki 137,000 1,782,781
Jusco 192,000 4,022,400
Keiyo 74,000 (c) 1,570,798
Marui 225,000 3,280,950
______________
Total 17,861,499
_____________________________________________________________________________________________________________________________
Utilities (1.7%)
Sumitomo Electric Inds 630,000 7,616,700
_____________________________________________________________________________________________________________________________
Miscellaneous industry (0.4%)
Matsushita Kotobuki Electronic Inds 94,000 1,969,300
_____________________________________________________________________________________________________________________________
Malaysia (2.7%)
Banks and savings & loans (1.0%)
Malayan Banking 662,000 4,583,026
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.9%)
Resorts World 757,000 4,145,332
_____________________________________________________________________________________________________________________________
Utilities (0.8%)
Tenaga Nasional 714,000 3,714,228
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 25
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Netherlands (2.7%)
Communications equipment (1.7%)
Elsevier 89,000 $ 7,389,047
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.5%)
Stork VMF 115,000 2,320,240
_____________________________________________________________________________________________________________________________
Insurance (0.5%)
Intl Nederlanden Groep 48,000 (b) 2,094,912
_____________________________________________________________________________________________________________________________
Singapore (5.4%)
Banks and savings & loans (2.5%)
Development Bank of Singapore 497,500 5,050,123
Overseas Union Bank 1,121,750 5,658,107
____________
Total 10,708,230
_____________________________________________________________________________________________________________________________
Food (0.9%)
Fraser & Neave 405,600 3,963,929
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.6%)
Sembawang Shipyard 311,000 2,588,142
_____________________________________________________________________________________________________________________________
Industrial transportation (1.4%)
Keppel 580,000 3,656,900
Neptune Orient Lines 2,500,000 (b) 2,820,000
____________
Total 6,476,900
_____________________________________________________________________________________________________________________________
Spain (4.3%)
Banks and savings & loans (1.1%)
Banco Popular 37,918 4,926,837
_____________________________________________________________________________________________________________________________
Telecommunications (1.4%)
Telefonica 485,500 6,358,594
_____________________________________________________________________________________________________________________________
Utilities (1.8%)
Repsol 157,000 4,714,239
Iberdrola 470,000 3,109,050
_____________
Total 7,823,289
_____________________________________________________________________________________________________________________________
Sweden (2.2%)
Electronics (0.7%)
Asea B 42,400 2,861,618
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 26
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Health care (1.5%)
Astra Cl A 131,700 $ 2,898,059
Astra Cl B 173,465 3,710,416
____________
Total 6,608,475
_____________________________________________________________________________________________________________________________
Switzerland (4.5%)
Banks and savings & loans (1.8%)
Swiss Bank Corp 47,000 7,740,759
_____________________________________________________________________________________________________________________________
Health care (1.6%)
Roche (Genuss) 650 2,522,781
Sandoz (Registered) 1,800 4,495,442
_____________
Total 7,018,223
_____________________________________________________________________________________________________________________________
Insurance (1.1%)
Swiss-Re (PC) 9,550 4,808,836
_____________________________________________________________________________________________________________________________
Thailand (1.7%)
Banks and savings & loans (0.3%)
Siam Commercial Bank 220,000 1,371,700
_____________________________________________________________________________________________________________________________
Building materials (0.5%)
Siam Cement 75,000 2,415,150
_____________________________________________________________________________________________________________________________
Computers & office equipment (0.9%)
Shinawatra Computer 109,000 3,836,909
_____________________________________________________________________________________________________________________________
United Kingdom (16.8%)
Aerospace & defense (1.0%)
Racal Electronics 1,410,000 4,323,060
_____________________________________________________________________________________________________________________________
Banks and savings & loans (2.3%)
Barclays 889,000 7,541,387
HSBC Holdings 247,234 2,811,298
____________
Total 10,352,685
_____________________________________________________________________________________________________________________________
Building materials (0.4%)
Tarmac 988,600 2,015,755
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 27
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (continued)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Communications equipment (0.9%)
Carlton Communications ADR 355,000 $ 4,047,355
_____________________________________________________________________________________________________________________________
Computers & office equipment (2.2%)
Rank Organisation 778,000 9,726,556
_____________________________________________________________________________________________________________________________
Industrial transportation (1.2%)
British Airways 954,375 5,369,314
_____________________________________________________________________________________________________________________________
Insurance (0.7%)
Sun Alliance Group 560,000 3,075,520
_____________________________________________________________________________________________________________________________
Machinery (1.5%)
Siebe 800,000 6,512,800
_____________________________________________________________________________________________________________________________
Metals (0.8%)
RTZ 331,337 3,368,041
_____________________________________________________________________________________________________________________________
Multi-industrial (2.2%)
Hanson Trust 1,420,000 5,711,240
T & N 1,417,000 3,796,143
____________
Total 9,507,383
_____________________________________________________________________________________________________________________________
Retail (2.7%)
Argyll Group 1,025,000 4,492,575
Kingfisher 250,000 2,440,750
Next 1,250,034 3,627,599
Storehouse 396,800 1,151,514
____________
Total 11,712,438
_____________________________________________________________________________________________________________________________
Utilities (0.5%)
Thames Water 275,458 2,213,856
_____________________________________________________________________________________________________________________________
Miscellaneous industry (0.4%)
WPP 1,270,400 1,871,299
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $348,470,831) $412,140,818
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 28
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Other (2.2%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Germany (1.1%)
Commerzbank
Warrants 2,096 $ 61,259
Deutsche Bank
Warrants 118,000 4,018,962
Veba
Warrants 13,000 1,060,774
_____________
Total 5,140,995
_____________________________________________________________________________________________________________________________
Sweden (0.2%)
Astra Cl A
Warrants 86,000 792,920
_____________________________________________________________________________________________________________________________
Switzerland (0.5%)
Swiss Re
Warrants 16,600 2,184,942
_____________________________________________________________________________________________________________________________
United Kingdom (0.4%)
Kingfisher
Warrants 1,000,000 1,150,000
Tarmac
New Fully Paid 247,150 503,939
____________
Total 1,653,939
_____________________________________________________________________________________________________________________________
Total other
(Cost: $6,514,859) $ 9,772,796
_____________________________________________________________________________________________________________________________
Bond (0.1%)
_____________________________________________________________________________________________________________________________
Issuer and coupon rate Principal amount Value(a)
_____________________________________________________________________________________________________________________________
Commerzbank
7.25% 2006 $524,000 $ 340,684
_____________________________________________________________________________________________________________________________
Total bond
(Cost: $320,578) $ 340,684
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 29
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (4.5%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (0.8%)
Federal Home Loan
Bank Disc Notes
11-09-93 3.04% $ 200,000 $ 199,832
11-15-93 3.04 2,500,000 2,496,633
Federal Natl Mtge Assn
Disc Note
11-01-93 3.05 700,000 699,882
____________
Total 3,396,347
_____________________________________________________________________________________________________________________________
Commercial paper (3.4%)
Ciesco LP
12-08-93 3.09 800,000 797,331
Fleet Funding
12-02-93 3.12 1,800,000 (d) 1,794,868
Michigan Consolidated Gas
11-30-93 3.14 2,600,000 2,592,992
Mobile Australia Finance
12-07-93 3.11 1,500,000 (d) 1,495,092
Natl Australia Funding
11-26-93 3.09 1,200,000 1,197,228
Sandoz
12-08-93 3.09 2,500,000 2,491,658
SBT Funding
11-01-93 3.11 800,000 (d) 799,862
Toyota Motor Credit
11-01-93 3.12 4,000,000 3,999,309
____________
Total 15,168,340
______________________________________________________________________________________________________________________________
Letter of credit (0.3%)
Barclays Bank-
Mission Funding
11-16-93 3.15 1,200,000 (d) 1,198,112
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $19,762,914) $ 19,762,799
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $375,069,182)(e) $442,017,097
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE 30
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc.
Oct. 31, 1993
______________________________________________________________________________________________________________________________
_
Notes to investments in securities
______________________________________________________________________________________________________________________________
_
(a) Securities are valued by procedures described in Note 1 to the financial statements. Foreign security
values and principal amounts are stated in U.S. dollars and may be classified according to country of risk.
(b) Presently non-income producing.
(c) Security is partially or fully on loan. See Note 4 to financial statements.
(d) Commercial paper sold within terms of a private placement memorandum exempt from registration under
Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program
or other "accredited investors." These securities have been determined to be liquid under guidelines
established by the board of directors.
(e) At Oct. 31, 1993, the cost of securities for federal income tax purposes was $375,069,182
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
<S> <C>
Unrealized appreciation $75,082,108
Unrealized depreciation (8,134,193)
_____________________________________________________________________________________________________________
Net unrealized appreciation $66,947,915
_______________________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 31
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 Planned Investment Account
Invests in money market securities to provide maximum current
income consistent with liquidity and stability of principal of
principal, while serving as a base for systematic exchanges into
IDS fixed income and equity funds.
(icon of) stair steps
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
<PAGE>
PAGE 32
Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories,or the equivalent, and in
government bonds.
(icon of) greek column
IDS Strategy Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
(icon of) chess piece
IDS Selective Fund, Inc.
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, Inc.
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, Inc.
Invests primarily in medium- and lower-quality municipal bonds and
notes.
(icon of) shield with basket of apples enclosed
<PAGE>
PAGE 33
IDS State Tax-Exempt Funds
(California, Massachusetts, Michigan, Minnesota, New York, Ohio)
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, Inc.
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, Inc.
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, Inc.
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
<PAGE>
PAGE 34
IDS Equity Plus Fund, Inc.
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by IDS research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund, Inc.
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, Inc.
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
<PAGE>
PAGE 35
Growth funds
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, Inc.
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 Growth Fund, Inc.
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 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 New Dimensions Fund, Inc.
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, Inc.
Invests primarily in undervalued common stocks. The Fund holds
stocks for the long-term with the goal of capital growth.
(icon of) shooting star
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
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.<PAGE>
PAGE 36
IDS Precious Metals Fund, Inc.
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 IDS personal financial planner or writing to IDS Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440. Read it carefully
before you invest or send money.
<PAGE>
PAGE 37
Federal income tax information
IDS International 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. The dividends listed below 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 International Fund, Inc.
Fiscal year ended Oct. 31, 1993
Income distribution
taxable as dividend income, 0.95% qualifying for deduction by
corporations.
Payable date Per share
Dec. 30, 1992 $0.01432
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 30, 1992 $0.18940
Total distributions $0.20372
<PAGE>
PAGE 38
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 International Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 39
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.
