<PAGE>
PAGE 1
FINANCIAL PLANNING
IDS
International
Fund
1994 annual report
(prospectus enclosed)
(Icon of) Three flags
The goal of IDS International Fund, Inc. is long-term growth of
capital. The fund invests primarily in common stocks and securities
convertible into common stocks of foreign issuers.
(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.)
IDS
An American Express company
AMERICAN
EXPRESS
Distributed by IDS Financial Services Inc.
<PAGE>
PAGE 2
(Icon of) Three flags
A world of opportunity
There'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 offer 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 diversify 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.
1994 annual report
From the president 4
From the portfolio management team 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 22
IDS mutual funds 28
Federal income tax information 31
1994 prospectus
The fund in brief
Goal 3p
Types of fund investments 3p
Manager and distributor 3p
Portfolio managers 3p
Sales charge and fund expenses
Sales charge 4p
Operating expenses 4p
Performance
Financial highlights 5p
Total returns 6p
Key terms 7p
Investment policies and risks
Facts about investments and their risks 8p
Fund structure 11p
Valuing assets 11p
How to buy, exchange or sell shares
How to buy shares 12p
How to exchange shares 14p
How to sell shares 14p
Reductions of the sales charge 18p
Waivers of the sales charge 19p
Special shareholder services
Services 20p
Quick telephone reference 20p
Distributions and taxes
Dividend and capital gain distributions 21p
Reinvestments 22p
Taxes 23p
How the fund is organized
Shares 26p
Voting rights 26p
Shareholder meetings 27p
Directors and officers 27p
Investment manager and transfer agent 29p
Distributor 30p
About IDS
General information 31p
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PAGE 4
To our shareholders
(Photo of) William R. Pearce, President of the fund
(Photo of) Peter Lamaison, Portfolio management team
(Photo of) Paul Hopkins, Portfolio management team
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:
o The election of directors and the selection of KPMG Peat
Marwick LLP as independent auditors for each of the funds in
the group.
o A new investment management agreement that will become
effective for each fund when it begins offering multiple
classes of shares, now planned to occur in early March, 1995.
o 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.
o And, finally, a change in the rules with respect to the number
of "fundamental investment polices" that allows the board to
modify them should they deem appropriate.
No other business was presented at the meeting, which was concluded
by a report to shareholders from the IDS Investment Department.
Thanks to all of you for your effort in reviewing the proxy
material and voting your proxies.
William R. Pearce
From the portfolio management team:
The fund took advantage of volatile but generally positive stock
markets and positive currency trends in many foreign countries,
ultimately posting a double-digit gain for the past
fiscal year.
Although we maintained investments throughout the world, our
greatest exposure was to Japan. The strategy proved to be highly
productive throughout much of 1994, as that market, despite
political upheaval and a weak economy, gained ground while the yen
appreciated against the dollar. (U.S. investors benefit from
appreciating currencies in foreign countries, but are penalized
when those currencies fall in value versus the dollar.)
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PAGE 5
Southeast Asia strong
Prior to 1994, we enjoyed our greatest gains in Southeast Asia,
including Malaysia, Singapore and Hong Kong, which made spectacular
advances during the final months of 1993. Those markets soon
reversed direction, however, as they reacted negatively to rising
interest rates in the United States. To the fund's benefit, we had
already trimmed back our Southeast Asia holdings. The fluctuations
continued, with a sharp rebound during the summer, then another
slump this past fall.
Elsewhere, our new positions in Mexico and Argentina, established
this past summer after stock prices in those countries had
declined, provided a boost late in the fiscal year. In other major
markets where we were invested, Europe provided good results until
the spring of this year, when we reduced our holdings there in time
to avoid much of the impact of a subsequent downturn. Australia,
where we increased our exposure, also was positive overall for the
portfolio. Among the major markets represented in the fund, the
only disappointment of note was the United Kingdom.
The year ahead
At the close of the period, our greatest investment concentrations
were in Japan, the United Kingdom and Australia, in that order. The
Japanese market, which easily represents our largest country
exposure, appears poised to build on its 1994 advance, thanks to
expected strength among manufacturing companies. We have a
relatively small exposure to the United States, as we continue to
believe the potential for gain is better in other markets over the
near term.
The biggest current question mark for worldwide stock markets is
the direction of interest rates. Should rates continue to
move higher, most markets probably will be temporarily restrained.
Looking at the longer term, however, the prospects for gain remain
bright, as there is no lack of attractive investment opportunities.
Peter Lamaison
Paul Hopkins
12-month performance
(All figures per share)
Net asset value (NAV)
Oct. 31, 1994 $10.84
Oct. 31, 1993 $10.00
Increase $ 0.84
Distributions
Nov. 1, 1993 - Oct. 31, 1994
From income $ 0.15
From capital gains $ 0.10
Total distributions $ 0.25
Total return* +11.0%
* 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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<TABLE>
<CAPTION>
IDS International Fund, Inc.
Your fund's ten largest holdings
(Pie chart) The ten holdings listed here make up 16.19% of the fund's net assets
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Oct. 31, 1994)
____________________________________________________________________________________
<S> <C> <C>
Telefonica (Spain) 2.47% $19,675,528
Spain's monopoly operator of basic telephone and
telex services.
Cemex & Tolmex (Mexico) 1.78 14,142,319
Mexico's largest cement company.
Next (United Kingdom) 1.74 13,834,500
A leading clothing retailer in the United Kingdom.
Societe Elf Acquitaine (France) 1.69 13,473,347
A leading French oil company.
Rank Organisation (United Kingdom) 1.61 12,860,340
A major leisure-time company with interests in film,
television, travel and lodging.
Tokio Marine & Fire (Japan) 1.49 11,874,000
Tokio Marine is the largest and one of the oldest non-life
insurance companies in Japan. The company is part of the
prestigious Mitsubishi industrial group.
Lyonnaise des Eaux Dumez (France) 1.41 11,186,112
A leading water utility that has diversified into
communications and construction.
Siebe (United Kingdom) 1.35 10,743,320
A United Kingdom engineering company with significant
U.S. presence via Foxboro in control devices and process
systems.
TDK (Japan) 1.33 10,566,820
A leading producer of audio and video tapes and electronic
parts.
Elsevier (Netherlands) 1.32 10,515,270
The world's most profitable publisher, operating around
the globe.
Note: Certain foreign investment risks include: changes in currency exchange rates,
adverse political or economic order and lack of similar regulatory requirements
followed by U.S. companies.
</TABLE>
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Making the most of your fund
Average annual total return
(as of Oct 31, 1994)
1 year 5 years Since 11/15/84
+5.45% +7.75% +14.47%
You investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures reflect the deduction of the maximum 5% sales charge. This
was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
Build your assets systematically
To keep your assets growing steadily, one of the best ways to use
the fund is by dollar-cost averaging -- a time-tested strategy that
can make market fluctuations work for you. To dollar-cost average,
simply invest a fixed amount of money regularly. You'll
automatically buy more shares when the fund's share price is low,
fewer shares when it is high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low
(arrow in table pointing to September) and fewer shares when the
per share market price is high.
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well<PAGE>
PAGE 8
o you receive capital gains when the gains on investments sold
by the fund exceed losses
o you receive income when the fund's stock dividends, interest
and short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS International Fund
Average annual total return Lipper International
(as of Oct. 31, 1994) Fund Index
Since
1 year 5 years 11/15/84
+5.45% +7.75% +14.47%
$38,711
International
Fund
$30,000 World Index
$20,000
$9,500
12/1/84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94
(footnotes to the side) Assumes: o Holding period from 12/01/84 to
10/31/94. o Returns do not reflect taxes payable on distributions.
o Also see "Performance" in fund's current prospectus. o
Reinvestment of all income and capital gain distributions for the
fund, with a value of $17,972.
(footnote to the side) 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.
(footnote to the side) Lipper International Fund Index, published
by Lipper Analytical Services, Inc., includes 10 funds that are
generally similar to the fund, although some funds in the index may
have somewhat different investment policies or objectives.
On the chart above you can see how the fund's total return compared
to two widely cited performance measures, the World Index and the
Lipper International Fund Index. In comparing International Fund
to the two indexes, you should take into account the fact that the
fund's performance reflects the maximum sales charge of 5%. while
no such charges are 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 would reduce your total
return as well.<PAGE>
PAGE 10
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Average annual total return figures reflect the deduction of the
maximum 5% sales charge. 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 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, 1994, 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, 1994, and the financial
highlights for each of the years in the nine-year period ended
October 31, 1994, 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, 1994, 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, 1994, 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
December 2, 1994
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<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS International Fund, Inc.
Oct. 31, 1994
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $731,639,894) $814,679,702
Cash in bank on demand deposit (incuding foreign currency holdings of $812,129) 12,362,794
Dividends and accrued interest receivable 3,659,202
Receivable for investment securities sold 3,836,673
Receivable for foreign currency contracts held, at value (Notes 1 and 5) 119,863,651
U.S. government securities held as collateral (Note 4) 43,806,838
_____________________________________________________________________________________________________________
Total assets 998,208,860
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Payable for investment securities purchased 18,427,740
Payable for foreign currency contracts held, at value (Notes 1 and 5) 123,511,309
Payable upon return of securities loaned (Note 4) 59,266,538
Accrued investment management and services fee 531,391
Accrued distribution fee 58,711
Accrued transfer agency fee 146,446
Other accrued expenses 322,915
_____________________________________________________________________________________________________________
Total liabilities 202,265,050
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $795,943,810
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 73,427,092 shares $ 734,271
Additional paid-in capital 666,416,578
Undistributed net investment income 998,373
Accumulated net realized gain (Note 1) 48,402,438
Unrealized appreciation (Note 5) 79,392,150
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $795,943,810
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 10.84
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
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<TABLE>
<CAPTION>
Financial statements
Statement of operations
IDS International Fund, Inc.
Year ended Oct. 31, 1994
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $1,112,638) $10,505,612
Interest 2,039,312
_____________________________________________________________________________________________________________
Total income 12,544,924
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 5,036,058
Distribution fee 571,158
Transfer agency fee 1,424,932
Compensation of directors 8,816
Compensation of officers 6,867
Custodian fees 655,088
Postage 186,123
Registration fees 271,965
Reports to shareholders 59,691
Audit fees 33,000
Administrative 8,242
Other 12,780
_____________________________________________________________________________________________________________
Total expenses 8,274,720
_____________________________________________________________________________________________________________
Investment income -- net 4,270,204
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions (including loss of $3,120,093
from foreign currency transactions) (Note 3) 45,328,394
Net change in unrealized appreciation or depreciation 11,598,100
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 56,926,494
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $61,196,698
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
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<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS International Fund, Inc.
Year ended Oct. 31,
_____________________________________________________________________________________________________________
Operations and distributions 1994 1993
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 4,270,204 $ 2,388,105
Net realized gain on investments and foreign currency 45,328,394 9,586,806
Net change in unrealized appreciation or depreciation 11,598,100 64,230,317
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 61,196,698 76,205,228
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (4,463,645) --
Net realized gain (7,436,433) (5,303,873)
Excess distribution of realized gain (Note 1) -- (400,127)
_____________________________________________________________________________________________________________
Total distributions (11,900,078) (5,704,000)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
45,588,043 and 24,150,389 shares (Note 2) 476,589,212 218,558,554
Net asset value of 1,145,483 and 705,935 shares
issued in reinvestment of distributions 11,812,164 5,651,024
Payments for redemptions of
17,262,033 and 8,543,243 shares (181,295,320) (74,539,734)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
29,471,493 and 16,313,081 shares 307,106,056 149,669,844
_____________________________________________________________________________________________________________
Total increase in net assets 356,402,676 220,171,072
Net assets at beginning of year 439,541,134 219,370,062
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$998,373 and $4,457,967) $795,943,810 $439,541,134
_____________________________________________________________________________________________________________
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.
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.
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.
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PAGE 16
Futures transactions
In order to gain exposure to or protect itself from changes in the
market, the fund may buy and sell interest rate 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.
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 <PAGE>
PAGE 17
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 decreased by $3,266,153 and accumulated net
realized gain has been increased by $3,174,097, resulting in a net
reclassification adjustment to increase paid-in-capital by $92,056.
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 $328,330 for the year ended Oct.
31, 1994. From its fees IDS pays IDS International, Inc. a
subadvisory fee equal to 0.35% of the fund's average daily net
assets.
<PAGE>
PAGE 18
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.
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 $6,319,421 for the year ended Oct. 31, 1994. The fund
also pays custodian fees to IDS Trust Company, an 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 $3,523 for the year ended Oct. 31, 1994.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $594,271,836 and $342,091,966,
respectively, for the year ended Oct. 31, 1994. Realized gains and
losses are determined on an identified cost basis.
___________________________________________________________________
4. Lending of portfolio securities
At Oct. 31, 1994, securities valued at $60,073,619 were on loan to
brokers. For collateral, the fund received $15,459,700 in cash and
U.S. government securities valued at $43,806,838. Income from
securities lending amounted to $238,124 for the year ended Oct. 31,
1994. The risks to the fund of securities lending are that the
borrower may not provide additional collateral when required or
return the securities when due.
___________________________________________________________________
5. Foreign currency contracts
At Oct. 31, 1994, the fund had entered into 12 foreign currency
exchange contracts that obligate the fund to deliver currencies at
specified future dates. The net unrealized depreciation of
$3,647,658 on these contracts is included in the accompanying
financial statements. The terms of the open contracts are as
follows:
<PAGE>
<TABLE> 19
<CAPTION>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered Oct. 31, 1994 received Oct. 31, 1994
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Nov. 1, 1994 200,000 $ 327,360 323,956 $ 323,956
British Pound U.S. Dollar
Nov. 1, 1994 816,251 816,251 504,320 825,470
U.S. Dollar British Pound
Nov. 2, 1994 1,547,306 1,547,306 149,841,130 1,547,147
U.S. Dollar British Pound
Nov. 3, 1994 1,184,796 1,184,796 727,087 1,190,096
U.S. Dollar British Pound
Nov. 4, 1994 1,177,921 1,177,921 723,761 1,184,652
U.S. Dollar British Pound
Nov. 7, 1994 511,264 379,639 380,043 380,043
Australian Dollar U.S. Dollar
Nov. 8, 1994 2,536,324 2,536,324 1,549,657 2,536,479
U.S. Dollar British Pound
Nov. 8, 1994 561,935 561,935 343,513 562,261
U.S. Dollar British Pound
Nov. 10, 1994 2,036,285 2,036,285 1,245,335 2,038,365
U.S. Dollar British Pound
Nov. 10, 1994 274,563 274,563 168,122 275,182
U.S. Dollar British Pound
Dec. 30, 1994 7,165,440,000 74,355,729 72,000,000 72,000,000
Japanese Yen U.S. Dollar
March 31, 1995 3,659,855,000 38,313,200 37,000,000 37,000,000
Japanese Yen U.S. Dollar
____________ ____________
$123,511,309 $119,863,651
</TABLE>
<PAGE>
PAGE 20
___________________________________________________________________
6. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on page 5 of the prospectus.
<PAGE>
PAGE 21
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1994 investments compared to net assets)
___________________________________________________________________________________________________________________________
Common stocks (91.8%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Argentina (1.6%)
Multi-industry conglomerates (1.1%)
Perez Naviera B Shares 1,575,000 (b) $ 8,506,575
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.5%)
Telefonica de Argentina 60,000 (c) 3,727,500
_____________________________________________________________________________________________________________________________
Australia (7.5%)
Banks and savings & loans (1.2%)
Westpac Banking 2,815,000 9,447,140
_____________________________________________________________________________________________________________________________
Energy (1.0%)
Broken Hill Proprietary 533,000 8,168,758
_____________________________________________________________________________________________________________________________
Industrial transportation (1.0%)
Brambles Inds 829,452 8,301,985
_____________________________________________________________________________________________________________________________
Metals (2.2%)
CRA 527,400 7,503,320
Pasminco 5,935,400 (b) 9,959,601
_____________
Total 17,462,921
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.0%)
Ampolex 2,625,000 (c) 7,932,750
____________________________________________________________________________________________________________________________
Retail (1.1%)
Woolworth's LTD 3,995,548 (c) 8,542,482
_____________________________________________________________________________________________________________________________
Belgium (0.6%)
Industrial equipment & services
Bekaert 6,100 4,734,796
_____________________________________________________________________________________________________________________________
Canada (0.6%)
Communications equipment
BCE Mobile 147,150 (b) 4,528,571
_____________________________________________________________________________________________________________________________
Chile (0.9%)
Utilities-telephone
Telefonos de Chile ADR 80,000 (c) 7,530,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 22
_____________________________________________________________________________________________________________________________
Denmark (1.2%)
Utilities-telephone
Teledanmark B Shares 161,600 9,309,130
_____________________________________________________________________________________________________________________________
Finland (0.4%)
Banks and savings & loans
Kansallis-Osake-Pankki 1,545,500 2,880,812
_____________________________________________________________________________________________________________________________
France (6.7%)
Banks and savings & loans (0.5%)
Credit Commercial de France 100,000 4,207,100
_____________________________________________________________________________________________________________________________
Building materials (1.1%)
Lafarge-Coppee (Bearer) 109,909 8,720,510
_____________________________________________________________________________________________________________________________
Electronics (0.3%)
Alcatel Alsthom Electricite 28,725 2,634,686
_____________________________________________________________________________________________________________________________
Energy (2.5%)
Societe Elf Aquitaine 182,220 13,473,347
Total Petroleum Cl B 97,250 6,310,066
_____________
Total 19,783,413
_____________________________________________________________________________________________________________________________
Financial services (0.4%)
Cie de Suez 63,000 3,015,306
_____________________________________________________________________________________________________________________________
Insurance (0.5%)
Union des Assurances Federales 34,500 3,667,212
_____________________________________________________________________________________________________________________________
Miscellaneous (1.4%)
Lyonnaise des Eaux Dumez 123,000 11,186,112
_____________________________________________________________________________________________________________________________
Germany (1.4%)
Building materials (0.1%)
Hochtief 1,400 874,447
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.8%)
Preussag 21,000 (c) 6,125,301
_____________________________________________________________________________________________________________________________
Retail (0.5%)
Karstadt 9,700 4,032,659
_____________________________________________________________________________________________________________________________
Hong Kong (3.4%)
Industrial transportation (0.5%)
Shun Tak Holdings 4,394,000 3,862,326
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 23
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.8%)
Hutchison Whampoa 1,615,000 7,459,685
Swire Pacific Cl A 865,000 6,604,275
____________
Total 14,063,960
_____________________________________________________________________________________________________________________________
Real estate (0.5%)
Great Eagle Holdings 7,332,000 4,171,908
_____________________________________________________________________________________________________________________________
Retail (0.6%)
Dairy Farm Intl 3,787,000 (c) 4,923,100
_____________________________________________________________________________________________________________________________
Japan (25.3%)
Banks and savings & loans (1.3%)
Fuji Bank 125,000 2,774,875
Sumitomo Trust & Banking 514,000 7,482,812
____________
Total 10,257,687
_____________________________________________________________________________________________________________________________
Building materials (2.0%)
Asahi Glass 540,000 (c) 6,969,240
NGK Spark Plug 280,000 (b) 3,873,800
Nihon Cement 668,000 5,090,160
____________
Total 15,933,200
_____________________________________________________________________________________________________________________________
Electronics (5.3%)
Hitachi 624,000 6,507,072
Kyocera 125,000 9,525,000
Rohm 120,000 (c) 5,290,560
TDK 215,000 10,566,820
Toshiba 818,000 6,452,384
Yokogawa Electric 355,000 3,958,605
____________
Total 42,300,441
_____________________________________________________________________________________________________________________________
Financial (1.5%)
Daiwa Securities 184,000 2,678,672
Nomura Securities 323,000 6,770,080
Yamaichi Securities 350,000 2,775,150
_____________
Total 12,223,902
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 24
_____________________________________________________________________________________________________________________________
Food (0.4%)
Nichirei 475,000 (b) 3,432,825
_____________________________________________________________________________________________________________________________
Furniture & appliances (0.9%)
Sony 114,600 6,993,121
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.4%)
Ishikawajima-Harima Heavy Inds 761,000 3,661,171
Mitsubishi Heavy Inds 920,000 (b) 7,494,320
_____________
Total 11,155,491
_____________________________________________________________________________________________________________________________
Industrial transportation (0.6%)
Nippon Express 478,000 5,181,998
_____________________________________________________________________________________________________________________________
Insurance (1.5%)
Tokio Marine & Fire 1,000,000 11,874,000
____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.6%)
Konica 673,000 5,225,172
_____________________________________________________________________________________________________________________________
Machinery (1.6%)
Fanuc 162,000 7,861,536
Fuji Machine Mfg 147,000 4,826,598
____________
Total 12,688,134
______________________________________________________________________________________________________________________________
Media (0.4%)
Tokyo Broadcast 200,000 3,469,200
______________________________________________________________________________________________________________________________
Metals (0.9%)
Nippon Steel 1,786,000 7,376,180
_____________________________________________________________________________________________________________________________
Paper & packaging (0.6%)
Nippon Paper Inds 650,000 (b) 5,133,700
_____________________________________________________________________________________________________________________________
Real estate (1.1%)
Mitsui Fudosan 790,000 8,890,660
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 25
_____________________________________________________________________________________________________________________________
Retail (2.4%)
Amway Japan 45,000 1,458,945
Aoyama Trading 66,000 2,030,754
Chiyoda 65,000 1,301,950
Family Mart 51,900 3,386,734
Ito-Yokado 120,000 6,554,400
Marui 225,000 4,111,875
____________
Total 18,844,658
_____________________________________________________________________________________________________________________________
Wire & cable (1.9%)
NTN Corp 727,000 5,592,084
Sumitomo Electric Inds 630,000 9,431,730
_____________
Total 15,023,814
_____________________________________________________________________________________________________________________________
Miscellaneous (0.9%)
Itochu 870,000 (b) 6,772,950
_____________________________________________________________________________________________________________________________
Malaysia (2.8%)
Banks and savings & loans (0.4%)
Malayan Banking 464,000 3,159,840
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.4%)
Resorts World 554,000 3,512,360
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.7%)
Sime Darby 1,925,000 5,311,075
_____________________________________________________________________________________________________________________________
Utilities-electric (0.6%)
Tenaga Nasional 830,000 4,417,260
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.7%)
Telekom Malaysia 676,000 5,476,276
_____________________________________________________________________________________________________________________________
Mexico (3.7%)
Building materials (3.2%)
Cemex & Tolmex Series B ADR 769,650 (c) 14,142,319
Empresas ICA Sociedad Controladora ADR 300,000 (c) 8,887,500
Grupo Mexicano de Desarollo Series B ADR 131,900 (b) 2,390,687
____________
Total 25,420,506
______________________________________________________________________________________________________________________________
Financial Services (0.3%)
Banorte Series C 553,000 (b) 2,699,857
______________________________________________________________________________________________________________________________
<PAGE>
PAGE 26
_____________________________________________________________________________________________________________________________
Retail (0.2%)
Benavides B Shares 465,800 1,734,732
_____________________________________________________________________________________________________________________________
Netherlands (4.1%)
Chemicals (0.8%)
Akzo Nobel 50,000 (c) 6,318,600
_____________________________________________________________________________________________________________________________
Food (1.3%)
Unilever 85,000 10,126,135
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.4%)
Stork VMF 107,553 2,923,828
_____________________________________________________________________________________________________________________________
Insurance (0.3%)
Intl Nederlanden Groep 49,200 2,304,184
_____________________________________________________________________________________________________________________________
Media (1.3%)
Elsevier 1,030,000 10,515,270
_____________________________________________________________________________________________________________________________
New Zealand (1.4%)
Multi-industry conglomerates (0.4%)
Fletcher Challenge 1,278,100 3,444,479
____________________________________________________________________________________________________________________________
Paper & packaging (1.0%)
Carter Holt Harvey 3,142,000 7,619,350
_____________________________________________________________________________________________________________________________
Norway (1.1%)
Energy (0.7%)
Saga Petroleum Cl A 472,750 5,641,798
_____________________________________________________________________________________________________________________________
Industrial transportation (0.4%)
First Olsen Tankers 368,000 (b) 2,815,200
_____________________________________________________________________________________________________________________________
Philippines (0.4%)
Utilities-telephone
Philippines Long Distance Telephone ADR 55,000 (b,c) 3,135,000
_____________________________________________________________________________________________________________________________
Singapore (7.0%)
Automotive & related (1.2%)
Cycle & Carriage 1,023,000 9,404,439
_____________________________________________________________________________________________________________________________
Banks and savings & loans (2.0%)
Development Bank Singapore 758,500 8,057,545
Overseas Union Bank 1,329,625 7,605,455
_____________
Total 15,663,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 27
_____________________________________________________________________________________________________________________________
Beverages & tobacco (1.0%)
Fraser & Neave 649,600 7,696,461
_____________________________________________________________________________________________________________________________
Financial services (0.8%)
DBS Land 1,750,000 6,135,500
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.8%)
Sembawang Shipyard 780,000 6,055,140
_____________________________________________________________________________________________________________________________
Industrial transportation (1.2%)
Keppel 1,004,000 9,229,772
____________________________________________________________________________________________________________________________
Spain (4.3%)
Banks and savings & loans (1.2%)
Banco de Galicia ADR 177,300 (c) 4,787,100
Banco Popular de Espana 35,300 4,427,467
_____________
Total 9,214,567
_____________________________________________________________________________________________________________________________
Energy (0.6%)
Repsol 157,000 5,019,918
_____________________________________________________________________________________________________________________________
Telecommunications (2.5%)
Telefonica 1,454,000 19,675,528
_____________________________________________________________________________________________________________________________
Sweden (2.5%)
Health care (1.0%)
Astra Cl A 131,700 3,563,143
Astra Cl B 173,465 4,632,730
_____________
Total 8,195,873
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.7%)
Asea B Free Shares 75,700 5,496,577
_____________________________________________________________________________________________________________________________
Metals (0.5%)
Trelleborg B Free Shares 260,000 (b) 4,014,400
_____________________________________________________________________________________________________________________________
Paper & Packaging (0.3%)
SCA B Free Shares 151,000 (b) 2,457,374
_____________________________________________________________________________________________________________________________
Switzerland (0.8%)
Banks and savings & loans
Swiss Bank 47,000 (b) 6,502,497
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 28
_____________________________________________________________________________________________________________________________
Thailand (0.5%)
Banks and savings & loans
Siam Commercial Bank 374,000 3,871,274
_____________________________________________________________________________________________________________________________
United Kingdom (13.6%)
Banks and Savings & Loans (0.6%)
Natl Westminster 533,000 4,396,717
_____________________________________________________________________________________________________________________________
Building materials (1.0%)
CRH 300,000 1,689,000
Tarmac 3,185,750 6,412,915
____________
Total 8,101,915
_____________________________________________________________________________________________________________________________
Energy (0.6%)
Shell Transport & Trading 419,300 5,037,470
____________________________________________________________________________________________________________________________
Health care (1.1%)
Smithkline Beecham 801,500 (b) 5,338,791
Wellcome 329,170 3,442,789
_____________
Total 8,781,580
_____________________________________________________________________________________________________________________________
Leisure (2.3%)
Rank Organisation 1,945,000 12,860,340
Thorn EMI 350,000 5,585,650
_____________
Total 18,445,990
_____________________________________________________________________________________________________________________________
Machinery (1.3%)
Siebe 1,220,000 10,743,320
_____________________________________________________________________________________________________________________________
Media (0.4%)
WPP 1,860,000 3,377,760
_____________________________________________________________________________________________________________________________
Metals (0.7%)
RTZ 417,800 5,874,268
_____________________________________________________________________________________________________________________________
Multi-industrial (2.2%)
BTR 1,610,000 8,090,250
Framlington Maghreb Fund Units 34,000 (b) 1,742,500
Hanson Trust 1,674,700 6,332,041
T & N 418,000 1,477,630
_____________
Total 17,642,421
_____________________________________________________________________________________________________________________________
Real estate (0.6%)
MEPC 738,000 5,109,174
______________________________________________________________________________________________________________________________
<PAGE>
PAGE 29
_____________________________________________________________________________________________________________________________
Retail (1.7%)
Next 3,450,000 13,834,500
_____________________________________________________________________________________________________________________________
Transportation (1.1%)
British Airways 1,551,800 8,964,749
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $648,258,139) $730,636,527
_____________________________________________________________________________________________________________________________
Other (0.5%)
_____________________________________________________________________________________________________________________________
<CAPTION>
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Australia (0.4%)
Broken Hill Proprietary
Warrants 1,980,000 $ 3,175,738
______________________________________________________________________________________________________________________________
Japan (0.1%)
Fujitsu
Warrants 7,000 1,144,292
______________________________________________________________________________________________________________________________
Total other
(Cost: $3,673,610) $ 4,320,030
______________________________________________________________________________________________________________________________
Bond (0.5%)
______________________________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
______________________________________________________________________________________________________________________________
<S> <C> <C>
Malaysia
Renong
(U.S. Dollar)
2.50% Cv 2005 $4,000,000 (d) $ 4,020,000
______________________________________________________________________________________________________________________________
Total bond
(Cost: $4,005,000) $ 4,020,000
______________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 30
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Short-term securities (9.5%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (1.0%)
Federal Natl Mtge Assn
Disc Notes
11-28-94 4.81% $4,000,000 $ 3,985,630
11-30-94 4.90 4,000,000 3,984,276
_____________
Total 7,969,906
_____________________________________________________________________________________________________________________________
Commercial paper (7.2%)
Amgen
11-18-94 4.88 4,400,000 4,389,902
AT&T
11-18-94 4.85 4,800,000 4,789,052
Ciesco LP
11-07-94 4.94 1,700,000 1,698,606
Colgate Palmolive
11-08-94 5.07 1,700,000 (e) 1,698,331
Consolidated Rail
11-21-94 5.13 3,500,000 (e) 3,490,083
Eiger Capital
11-28-94 4.88 3,900,000 (e) 3,885,785
General Electric Capital
11-14-94 4.92 3,600,000 3,593,630
Merrill Lynch
11-10-94 5.10 5,500,000 5,493,015
Metlife Funding
11-22-94 4.88 4,400,000 4,387,526
Penny (JC) Funding
11-15-94 5.11 4,500,000 4,491,110
11-29-94 4.87 3,000,000 2,988,683
PepsiCo
11-01-94 4.87 1,000,000 (e) 1,000,000
Southwestern Bell Capital
11-09-94 5.10 5,500,000 (e) 5,493,791
Toyota Motor Credit
11-01-94 4.93 1,000,000 1,000,000
11-28-94 4.92 5,400,000 5,380,155
USAA Capital
11-30-94 4.92 3,700,000 3,685,395
_____________
Total 57,465,064
______________________________________________________________________________________________________________________________
<PAGE>
PAGE 31
______________________________________________________________________________________________________________________________
Letters of Credit (1.3%)
Bank of Amer-
AES Barbers Point
11-10-94 5.18 1,581,000 1,578,964
Credit Suisse-
Pemex Capital
11-22-94 4.85 3,000,000 2,991,548
Swiss Bank-
Pemex Capital
11-04-94 4.95 5,700,000 5,697,663
_____________
Total 10,268,175
______________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $75,703,145) $ 75,703,145
______________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $731,639,894)(f) $814,679,702
______________________________________________________________________________________________________________________________
Notes to investments in securities
______________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements. Foreign security
values are stated in U.S. dollars and are 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) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933,
as amended. This security has been determined to be liquid under guidelines established by the board of directors.
(e) 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.
(f) At Oct. 31, 1994, the cost of securities for federal income tax purposes was $731,682,394
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $101,984,175
Unrealized depreciation (18,986,867)
_______________________________________________________________________________________
Net unrealized appreciation $ 82,997,308
________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 32
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 33
IDS Strategy, Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
(icon of) chess piece
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the
timely payment of principal and interest by the U.S. government,
its agencies and instrumentalities. Seeks a high level of current
income and safety of principal consistent with its type of
investments.
(icon of) federal building
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and
notes to seek a high level of current income.
(icon of) chess piece
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
<PAGE>
PAGE 34
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
Growth and income investments
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20% of
its assets in the U.S. market.
(icon of) three flags
IDS Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the
world that offer potential for superior growth. Holdings may range
from small- to large-capitalization stocks, including those of
companies involved in areas of rapid economic growth.
(icon of) chess piece
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity Plus Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
<PAGE>
PAGE 35
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by IDS research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stock of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) chess piece
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high
current income and, secondarily, to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
<PAGE>
PAGE 36
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy, Aggressive Equity Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth potential
due to superiority in technology, marketing or management. The
Fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
<PAGE>
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IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial planner or writing to IDS Shareholder Service, P.O.
Box 534, Minneapolis, MN 55440-0534. Read it carefully before you
invest or send money.
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Federal income tax information
IDS International Fund, Inc.
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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, 1994
Income distribution
taxable as dividend income,
1.56% qualifying for deduction by corporations.
Payable date Per share
Dec. 30, 1993 $0.1494
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 30, 1993 $0.0984
Total distributions $0.2478
The distribution of $0.2478 per share, payable Dec. 30, 1993,
consisted of $0.0929 derived from net investment income, $0.0565
from net short-term capital gains (a total of $0.1494 taxable as
dividend income) and $0.0984 from net long-term capital gains.
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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
