PAGE
IDS International Fund
1995 semiannual report
(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.
Distributed by American Express Financial Advisors Inc.
(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.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 22
Directors and officers 28
IDS mutual funds 29
To our shareholders
(picture of)
William R. Pearce
President of the fund
(picture of)
Paul Hopkins
Portfolio manager
From the president
As I indicated in the fund's annual report, new agreements between the fund and
American Express Financial Corporation were approved by shareholders in
November 1994. The new agreements became effective when the fund began offering
multiple classes of shares on March 20, 1995.
The advantage of offering more than a single class of shares is that investors
may choose how they wish to pay sales charges. These charges compensate your
American Express financial advisor (formerly called your IDS planner), who is
committed to providing you with outstanding services.
Adding new classes of mutual fund shares does make the presentation of
financial information in this report more complex. However, we will continue
our effort to make the reports easier to read and understand. Meanwhile, your
advisor is available to answer your questions.
William R. Pearce
From the portfolio manager
Downturns in many foreign stock markets reversed the positive momentum we
enjoyed during the previous fiscal year. As a result, and despite efforts to
cushion the impact of the market declines, the portfolio's net asset value fell
during the first half of the current fiscal year (November 1994 through April
1995).
After performing well in 1993, many foreign markets experienced difficulty last
year. Fortunately, we managed to avoid the most severe impact of this
environment by maintaining a broad exposure to global markets.
Rates fuel fears
At the outset of 1994, stocks in Southeast Asia fell back from all-time highs.
Although they recovered in the summer months, by fall they were again losing
ground. These declines were driven by fears of the negative impact from rising
U.S. interest rates. By year-end, the same concern had let to the devaluation
of the Mexican peso. Both the Mexican market and that country's currency
continued to fall sharply through year-end and into 1995.
On the positive side, our holdings in Japan held up relatively well during the
final months of 1994. Still, the combined impact of the Kobe earthquake and an
appreciating yen (the local currency) combined to depress Japanese stocks early
this year.
Better outlook
Having built cash reserves to above 10%, we have now reduced them as attractive
stockbuying opportunities have become available. The market declines have
driven down prices on stocks of a number of good-quality companies. Southeast
Asia and Mexico are good examples. We have begun to add to our holdings -
specifically, in Mexico we have purchased shares of Cemex and Telmex. In
addition, we are bullish on the United Kingdom, where corporate profits remain
strong, and Continental Europe, where valuations have fallen to historically
low levels. Any setback in these markets will be used as a further buying
opportunity.
Paul Hopkins
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
__________________________
April 30, 1995 $ 9.55
__________________________
Oct. 31, 1994 $10.84
__________________________
Decrease $(1.29)
__________________________
Distributions
Nov. 1, 1994-April 30, 1995
__________________________
From income $ 0.23
__________________________
From capital gains $ 0.43
__________________________
Total distributions $ 0.66
__________________________
Total return** (5.8%)
__________________________
Class B
March 20, 1995-April 30, 1995
__________________________
(All figures per share)
Net asset value (NAV)
__________________________
April 30, 1995 $ 9.54
__________________________
March 20, 1995* $ 8.95
__________________________
Increase $ 0.59
__________________________
Distributions
March 20, 1995*-April 30, 1995
__________________________
From income $ --
__________________________
From capital gains $ --
__________________________
Total distributions $ --
__________________________
Total return** 6.6%***
__________________________
Class Y
March 20, 1995-April 30, 1995
__________________________
(All figures per share)
Net asset value (NAV)
__________________________
April 30, 1995 $ 9.55
__________________________
March 20, 1995* $ 8.95
__________________________
Increase $ 0.60
__________________________
Distributions
March 20, 1995*-April 30, 1995
__________________________
From income $ --
__________________________
From capital gains $ --
__________________________
Total distributions $ --
__________________________
Total return** 6.7%***
__________________________
*Commencement of operations.
**The prospectus discusses
the effects of the sales charge
on the various classes.
***The total return for the short
period of operations may not be
indicative of annual results.
PAGE
<TABLE>
<CAPTION>
IDS International Fund, Inc.
Your fund's ten largest holdings
(Pie chart) The ten holdings listed here make up 15.34% of the fund's net assets
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of April 30, 1995)
_____________________________________________________________________________________________________________
<S> <C> <C>
Next (United Kingdom) 1.93% $21,636,750
A leading clothing retailer in the United Kingdom.
Rank Organisation (United Kingdom) 1.71 19,105,621
A major leisure-time company with interests in film,
television, travel and lodging.
Siebe (United Kingdom) 1.65 18,453,638
A United Kingdom engineering company with significant
U.S. presence via Foxboro in control devices and process
systems.
Telefonica (Spain) 1.62 18,143,906
Spain's monopoly operator of basic telephone and
telex services.
Societe Elf Acquitaine (France) 1.62 18,095,949
A leading French oil company.
Lyonnaise des Eaux Dumez (France) 1.53 17,099,643
A leading water utility that has diversified into
communications and construction.
Unilever (Netherlands) 1.42 15,919,225
A diverse, international organization, Unilever
is a world leader in brand-name consumer products
- - mainly foods, detergents, and toiletries.
Elsevier (Netherlands) 1.38 15,438,090
The world's most profitable publisher, operating around
the globe.
Sanwa Bank (Japan) 1.25 13,987,838
Sanwa Bank is the parent company of a banking group
engaged in a full line of retail and commercial banking
services.
Tokio Marine & Fire (Japan) 1.23 13,800,520
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.
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
<PAGE>
PAGE
<TABLE>
<CAPTION>
Statement of assets and liabilities
IDS International Fund, Inc.
April 30, 1995
______________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,066,388,425) $1,129,005,049
Cash in bank on demand deposit 6,219,322
Dividends and accrued interest receivable 7,604,267
Receivable for investment securities sold 17,885,304
Receivable for foreign currency contracts held, at value (Notes 1 and 6) 124,975,626
U.S. government securities held as collateral (Note 5) 59,789,144
_____________________________________________________________________________________________________________
Total assets 1,345,478,712
_____________________________________________________________________________________________________________
Liabilities
____________________________________________________________________________________________________________
Payable for investment securities purchased 1,651,201
Payable for foreign currency contracts held, at value (Notes 1 and 6) 141,008,167
Payable upon return of securities loaned (Note 5) 82,733,494
Accrued investment management services fee 46,775
Accrued distribution and service fees 23,457
Accrued transfer agency fee 16,127
Accrued administrative services fee 3,161
Other accrued expenses 250,453
_____________________________________________________________________________________________________________
Total liabilities 225,732,835
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,119,745,877
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value; $ 1,173,304
Additional paid-in capital 1,081,213,028
Undistributed net investment income 4,166,649
Accumulated net realized loss (Notes 1 and 8) (13,391,187)
Unrealized appreciation (Note 6) 46,584,083
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $1,119,745,877
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $ 737,119,133
Class B $ 328,773,395
Class Y $ 53,853,349
Net asset value per share of outstanding capital stock: Class A shares 77,217,865 $ 9.55
Class B shares 34,472,141 $ 9.54
Class Y shares 5,640,442 $ 9.55
_____________________________________________________________________________________________________________
See accompanying notes to financial statements. <PAGE>
PAGE
Financial statements
Statement of operations
IDS International Fund, Inc.
Six months ended April 30, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income: (Unaudited)
Dividends (net of foreign taxes withheld of 1,283,120) $ 8,033,872
Interest 2,336,776
_____________________________________________________________________________________________________________
Total income 10,370,648
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 3,334,932
Distribution fee
Class A 278,932
Class B 273,555
Transfer agency fee 1,015,754
Incremental transfer agency fee - Class B 7,304
Service fee
Class A 132,165
Class B 63,411
Administrative services fee 61,385
Compensation of directors 11,293
Compensation of officers 3,874
Custodian fees 344,643
Postage 78,274
Registration fees 94,566
Reports to shareholders 62,502
Audit fees 18,163
Administrative 4,743
Other 8,083
_____________________________________________________________________________________________________________
Total expenses 5,793,579
_____________________________________________________________________________________________________________
Investment income -- net 4,577,069
_____________________________________________________________________________________________________________
Realized and unrealized (loss) -- net
_____________________________________________________________________________________________________________
Net realized loss on security and foreign currency transactions
(including loss of $5,404,514 from foreign currency transactions) (Note 3) (9,318,467)
Net change in unrealized appreciation or depreciation (20,484,074)
_____________________________________________________________________________________________________________
Net loss on investments and foreign currency (29,802,541)
_____________________________________________________________________________________________________________
Net decrease in net assets resulting from operations $(25,225,472)
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS International Fund,Inc.
_____________________________________________________________________________________________________________
Operations and distributions April 30, 1995 Oct. 31, 1994
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income -- net $ 4,577,069 $ 4,270,204
Net realized gain (loss) on investments and foreign currency (9,318,467) 45,328,394
Net change in unrealized appreciation or depreciation (20,484,074) 11,598,100
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations (25,225,472) 61,196,698
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (1,408,793) (4,463,645)
Net realized gain
Class A (48,445,502) (7,436,433)
_____________________________________________________________________________________________________________
Total distributions (49,854,295) (11,900,078)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 258,096,434 476,589,212
Class B shares 11,791,140 --
Class Y shares 56,794,124 --
Fund merger (Note 7)
Class A shares 1,621,032 --
Class B shares 305,529,237 --
Reinvestment of distributions at net asset value
Class A shares 49,507,986 11,812,164
Payments for redemptions
Class A shares (269,521,617) (181,295,320)
Class B shares (Note 2) (8,545,617) --
Class Y shares (6,390,885) --
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 398,881,834 307,106,056
_____________________________________________________________________________________________________________
Total increase in net assets 323,802,067 356,402,676
Net assets at beginning of period 795,943,810 439,541,134
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$4,166,649 and $998,373) $1,119,745,877 $795,943,810
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE
Notes to financial statements
IDS International Fund, Inc.
(Unaudited as to April 30, 1995)
__________________________________________________________________________
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. The
fund offers Class A, Class B and Class Y shares. Class A shares are sold
with a front-end sales charge. Class B shares, which the fund began
offering on March 20, 1995, may be subject to a contingent deferred sales
charge and such shares automatically convert to Class A after eight years.
Class Y shares, which the fund also began offering on March 20, 1995, have
no sales charge and are offered only to qualifying institutional
investors.
All classes of shares have identical voting, dividend, liquidation and
other rights, and the same terms and conditions, except that the level of
distribution fee, transfer agency fee and service fee (class specific
expenses) differ among classes. Income, expenses (other than class
specific expenses) and realized and unrealized gains or losses on
investments are allocated to each class of shares based upon its relative
net assets. Significant accounting policies followed by the fund are
summarized below:
Valuation of securities
All securities are valued at the close of each business day. Securities
traded on national securities exchanges or included in national market
systems are valued at the last quoted sales price; securities for which
market quotations are not readily available are valued at fair value
according to methods selected in good faith by the board of directors.
Determination of fair value involves, among other things, reference to
market indexes, matrixes and data from independent brokers. Short-term
securities maturing in more than 60 days from the valuation date are
valued at the market price or approximate market value based on current
interest rates; those maturing in 60 days or less are valued at amortized
cost.
Options transactions
In order to produce incremental earnings, protect gains, and facilitate
buying and selling of securities for investment purposes, the fund may buy
or write options traded on any U.S. or foreign exchange or in the over-
the-counter market where the completion of the obligation is dependent
upon the credit standing of the other party. The fund also may buy and
sell put and call options and write covered call options on portfolio
securities and may write cash-secured put options. The risk in writing a
call option is that the fund gives up the opportunity of profit if the
market price of the security increases. The risk in writing a put option
is that the fund may incur a loss if the market price of the security
decreases and the option is exercised. The risk in buying an option is
that the fund pays a premium whether or not the option is exercised. The
fund also has the additional risk of not being able to enter into a
closing transaction if a liquid secondary market does not exist.
Option contracts are valued daily at the closing prices on their primary
exchanges and unrealized appreciation or depreciation is recorded. The
fund will realize a gain or loss upon expiration or closing of the option
transaction. When an option is exercised, the proceeds on sales for a
written call option, the purchase cost for a written put option or the
cost of a security for a purchased put or call option is adjusted by the
amount of premium received or paid.
Futures transactions
In order to gain exposure to or protect itself from changes in the market,
the fund may buy and sell 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 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. Also, due to the timing of dividend distributions,
the fiscal year in which amounts are distributed may differ from the year
that the income or realized gains (losses) were recorded by the fund.
Dividends to shareholders
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 a prior agreement that ended March 19, 1995, the fund paid
American Express Financial Corporation a fee for managing its investments,
recordkeeping and other specified services. The fee was a percentage of
the fund's average daily net assets consisting of a group asset charge in
reducing percentages from 0.46% to 0.32% annually on the combined net
assets of all non-money market funds in the IDS MUTUAL FUND GROUP and an
individual annual asset charge of 0.23% of average daily net assets. The
fee was 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 was 0.12% of the fund's average daily net
assets after deducting 1% from the performance difference. If the
performance difference was less than 1%, the adjustment would have been
zero. The adjustment decreased the fee by $42,176 for the six months ended
April 30, 1995.
Also under terms of the prior agreement, the fund paid American Express
Financial Corporation 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 was reduced by earnings on
monies pending shareholder redemptions.
Effective March 20, 1995, when the fund began offering multiple classes of
shares, the fund entered into agreements with American Express Financial
Corporation for managing its portfolio, providing administrative services
and serving as transfer agent as follows: Under its Investment Management
Services Agreement, American Express Financial Corporation determines
which securities will be purchased, held or sold. The management fee is a
percentage of the fund's average daily net assets in reducing percentages
from 0.8% to 0.675% annually. The performance incentive adjustment remains
unchanged from the prior agreement. Under an Administrative Services
Agreement, the fund pays American Express Financial Corporation for
administration and accounting services at a percentage of the fund's
average daily net assets in reducing percentages from 0.06% to 0.035%
annually.
Under a separate Transfer Agency Agreement, American Express Financial
Corporation maintains shareholder accounts and records. The fund pays
American Express Financial Corporation an annual fee per shareholder
account for this service as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the fund entered into agreements with
American Express Financial Advisors Inc. for distribution and shareholder
servicing-related services as follows: Under the Distribution Agreement,
the fund pays a distribution fee at an annual rate of 0.75% of the fund's
average daily net assets attributable to Class B shares for distribution-
related services.
Under a Shareholder Service Agreement, the fund pays a fee for service
provided to shareholders by financial advisors and other servicing agents.
The fee is calculated at a rate of 0.175% of the fund's average daily net
assets attributable to Class A and Class B shares.
American Express Financial Corporation will assume and pay any expenses
(except taxes and brokerage commissions) that exceed the most restrictive
applicable state expense limitation.
Sales charges by American Express Financial Advisors Inc. for distributing
fund shares were $1,946,803 for Class A and $52,238 for Class B for the
six months ended April 30, 1995. The fund also pays custodian fees to
American Express Trust Company, an affiliate of American Express Financial
Corporation.
The fund has a retirement plan for its independent directors. Upon
retirement, directors receive monthly payments equal to one-half of the
retainer fee for as many months as they served as directors up to 120
months. There are no death benefits. The plan is not funded but the fund
recognizes the cost of payments during the time the directors serve on the
board. The retirement plan expense amounted to $1,174 for the six months
ended April 30, 1995.
__________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $477,960,027 (including $279,963,491
that was acquired in the fund merger as described in Note 7) and
$193,666,796, respectively, for the six months ended April 30, 1995.
Realized gains and losses are determined on an identified cost basis.
__________________________________________________________________________
4. Capital Share transactions
Transactions in shares of capital stock for the periods indicated are:
<TABLE>
<CAPTION>
________________________________________________________________________________________
Six months ended April 30, 1995 Year ended
10/31/94
Class A Class B* Class Y* Class A
________________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 27,399,749 1,265,594 6,327,577 45,588,043
Fund merger 181,080 34,129,718 -- --
Issued for reinvested
distributions 5,230,637 -- -- 1,145,483
Redeemed (29,020,693) (923,171) (687,135) (17,262,033)
_________________________________________________________________________________________
Net increase 3,790,773 34,472,141 5,640,442 29,471,493
_________________________________________________________________________________________
*Commencement of operations was March 20, 1995.
</TABLE>
__________________________________________________________________________
5. Lending of portfolio securities
At April 30, 1995, securities valued at $72,290,564 were on loan to
brokers. For collateral, the fund received $22,944,350 in cash and U.S.
government securities valued at $59,789,144. Income from securities
lending amounted to $165,714 for the six months ended April 30, 1995. The
risks to the fund of securities lending are that the borrower may not
provide additional collateral when required or return the securities when
due.
<PAGE>
PAGE
______________________________________________________________________________
6. Foreign currency contracts
At April 30, 1995, the fund had entered into nine foreign currency exchange
contracts that obligate the fund to deliver currencies at specified future
dates. The net unrealized depreciation of $16,032,541 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 April 30, 1995 received April 30, 1995
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
May 1, 1995 697,188 $ 697,188 430,501 $ 692,547
U.S. Dollar British Pound
May 3, 1995 10,431,360 7,587,250 7,586,342 7,586,342
Australian Dollar U.S. Dollar
May 3, 1995 3,085,738 2,074,079 2,070,839 2,070,839
New Zealand Dollar U.S. Dollar
May 4, 1995 3,919,152 2,850,595 2,861,373 2,861,373
Australian Dollar U.S. Dollar
May 4, 1995 1,655,809 1,112,952 1,114,525 1,114,525
New Zealand Dollar U.S. Dollar
May 16, 1995 5,923,500 5,897,551 5,500,000 5,500,000
Argentine Peso U.S. Dollar
May 17, 1995 2,315,550 2,305,406 2,150,000 2,150,000
Argentine Peso U.S. Dollar
Nov. 30, 1995 6,861,270,000 83,973,492 73,000,000 73,000,000
Japanese Yen U.S. Dollar
Nov. 30, 1995 2,819,700,000 34,509,654 30,000,000 30,000,000
Japanese Yen U.S. Dollar
____________ ____________
$141,008,167 $124,975,626
/TABLE
<PAGE>
7. Fund Merger
On March 17, 1995, IDS International Fund acquired the assets and assumed
the identified liabilities of IDS Strategy - Worldwide Growth Fund.
The aggregate net assets of IDS Interantional Fund immediately before
the acquisition was $1,043,362,804.
The merger was accomplished by a tax-free exchange of 60,969,132
shares of IDS Strategy - Worldwide Growth Fund valued at $307,150,269.
In exchange for the IDS Stragegy - Worldwide Growth Fund shares and net
assets, IDS
International Fund issued the following number of shares:
Class A 181,080
Class B 34,129,718
IDS Strategy - Worldwide Growth Fund's net assets at that date were as
follows,
which include the following amounts of capital stock, unrealized
depreciation, and accumulated net realized loss which was combined with
IDS International Fund.
<TABLE>
<CAPTION>
Total net Capital stock Unrealized Accumulated net
assets depreciation realized loss
<S> <C> <C> <C> <C>
Class A 1,621,032 1,720,070 (74,634) (24,404)
Class B 305,529,237 321,783,848 (12,249,359) (4,005,252)
</TABLE>
8. Capital loss Carryover
For federal income tax purposes, the fund has a capital loss carryover of
approximately $3,915,000 at April 30, 1995, that will expire in 2003 if
not offset by subsequent capital gains.
<PAGE>
9. Financial highlights
PAGE
<TABLE>
<CAPTION>
IDS International Fund, Inc.
The table below shows certain important financial information for
evaluating the fund's results.
Fiscal period ended Oct. 31,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990
Classes
A B Y
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $10.84 $8.95 $8.95 $10.00 $7.94 $8.60 $8.99 $9.30
beginning of period
Income from investment operations:
Net investment income .04 .03 .04 .05 .04 .05 .07 .15
Net gains (losses) (.67) .56 .56 1.04 2.22 (.58) .42 .51
(both realized
and unrealized)
Total from investment (.63) .59 .60 1.09 2.26 (.53) .49 .66
operations
Less distributions:
Dividends from net (.02) -- -- (.09) -- (.05) (.16) (.10)
investment income
Distributions from (.64) -- -- (.16) (.19) (.08) (.72) (.87)
realized gains
Excess distribution of -- -- -- -- (.01) -- -- --
realized gains
Total distributions (.66) -- -- (.25) (.20) (.13) (.88) (.97)
Net asset value, $9.55 $9.54 $9.55 $10.84 $10.00 $7.94 $8.60 $8.99
end of period
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
Classes
A B Y
Net assets, end of period $737 $329 $54 $796 $440 $219 $232 $215
(in millions)
Ratio of expenses to 1.35%+ 2.18%+ 1.20%+ 1.33% 1.47% 1.45% 1.35% 1.35%
average daily net assets
Ratio of net income .94%+ 2.52%+ 3.76%+ .68% .83% .65% .83% 1.67%
to average daily net assets
Portfolio turnover rate 23% 23% 23% 58% 63% 94% 66% 98%
(excluding short-term
securities)
Total return++ (5.8%)+++ 6.6% 6.7% 11.0% 29.2% (6.4%) 6.3% 7.1%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended April 30, 1995, for Class A and commencement of operations
March 20, 1995 for Class B and Class Y (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
+++For the fiscal period ended April 30, 1995, the annualized total return is (11.3%).
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
April 30, 1995 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (89.3%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Argentina (1.3%)
Multi-industry conglomerates (0.9%)
Perez Naviera B Shares 2,509,860 $ 10,240,229
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.4%)
Telefonica de Argentina 170,000 (c) 3,995,000
_____________________________________________________________________________________________________________________________
Australia (4.7%)
Banks and savings & loans (0.7%)
Westpac Banking 2,257,000 8,337,358
_____________________________________________________________________________________________________________________________
Energy (0.5%)
Broken Hill Proprietary 397,178 5,777,748
_____________________________________________________________________________________________________________________________
Industrial transportation (0.5%)
Brambles Inds 554,666 5,470,116
_____________________________________________________________________________________________________________________________
Metals (2.0%)
CRA 646,000 9,274,622
Pasminco 12,278,400 (b) 13,211,558
_____________
Total 22,486,180
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.0%)
Ampolex 3,699,720 (c) 10,681,092
____________________________________________________________________________________________________________________________
Retail (--)
Woolworth's LTD 85,306 185,455
_____________________________________________________________________________________________________________________________
Canada (1.6%)
Communications equipment (0.6%)
BCE Mobile 192,250 (b) 6,080,733
_____________________________________________________________________________________________________________________________
Electronics (0.5%)
Northern Telecom 163,800 5,958,225
_____________________________________________________________________________________________________________________________
Energy (0.5%)
Rennaissance Energy 235,400 (b) 5,324,418
_____________________________________________________________________________________________________________________________
Chile (0.7%)
Utilities-telephone
Telefonos de Chile ADR 115,000 (c) 7,935,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
Denmark (1.0%)
Utilities-telephone
Teledanmark B Shares 223,400 11,654,108
_____________________________________________________________________________________________________________________________
France (7.9%)
Automotive & related (0.5%)
Peugeot 38,250 (b) 5,508,115
_____________________________________________________________________________________________________________________________
Banks and savings & loans (1.0%)
Credit Commercial de France 240,000 10,621,680
_____________________________________________________________________________________________________________________________
Building materials (0.8%)
Lafarge-Coppee (Bearer) 108,629 8,450,250
_____________________________________________________________________________________________________________________________
Electronics (0.3%)
Alcatel Alsthom Electricite 36,981 3,425,069
_____________________________________________________________________________________________________________________________
Energy (2.3%)
Societe Elf Aquitaine 226,880 18,095,949
Total Petroleum Cl B 130,580 (c) 8,147,409
_____________
Total 26,243,358
_____________________________________________________________________________________________________________________________
Financial services (0.4%)
Cie de Suez 83,600 4,345,110
_____________________________________________________________________________________________________________________________
Food (0.6%)
Danone 38,000 6,274,788
_____________________________________________________________________________________________________________________________
Insurance (0.5%)
Union des Assurances Federales 59,000 6,015,581
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.5%)
Lyonnaise des Eaux Dumez 172,240 17,099,643
_____________________________________________________________________________________________________________________________
Germany (1.2%)
Multi-industry conglomerates (0.7%)
Preussag 27,400 (c) 7,923,970
_____________________________________________________________________________________________________________________________
Retail (0.5%)
Karstadt 13,460 5,790,331
_____________________________________________________________________________________________________________________________
Hong Kong (2.2%)
Multi-industry conglomerates (1.7%)
Hutchison Whampoa 2,231,000 9,682,540
Swire Pacific Cl A 1,351,000 9,031,435
____________
Total 18,713,975
_____________________________________________________________________________________________________________________________
Retail (0.5%)
Dairy Farm Intl 5,264,000 (c) 5,579,840
_____________________________________________________________________________________________________________________________
Italy (0.7%)
Communications equipment
Telecom Italia 2,922,000 7,775,442
_____________________________________________________________________________________________________________________________
Japan (29.4%)
Banks and savings & loans (3.1%)
FujiBank 323,000 7,762,659
Sanwa Bank 646,000 13,987,838
Sumitomo Trust & Banking 890,000 13,447,900
____________
Total 35,198,397
_____________________________________________________________________________________________________________________________
Building materials (5.5%)
Asahi Glass 740,000 (c) 9,684,380
Daiwa Kosho Lease 694,000 6,853,250
JGC 698,500 (c) 11,052,366
NGK Spark Plug 837,000 (c) 9,758,583
Nihon Cement 1,610,000 12,736,710
Sho-Bond 160,000 (c) 5,292,000
Tostem 175,000 6,350,225
____________
Total 61,727,514
_____________________________________________________________________________________________________________________________
Chemicals (1.0%)
Sekisui Chemical 895,000 11,180,340
_____________________________________________________________________________________________________________________________
Electronics (5.0%)
Hitachi 856,000 8,707,232
Kyocera 170,000 13,146,780
Rohm 281,000 (c) 13,004,961
TDK 298,000 13,614,726
Yokogawa Electric 740,000 7,201,680
____________
Total 55,675,379
_____________________________________________________________________________________________________________________________
Financial (0.8%)
Nomura Securities 449,000 9,081,474
_____________________________________________________________________________________________________________________________
Furniture & appliances (0.6%)
Sony 123,200 6,214,947
_____________________________________________________________________________________________________________________________
Health care (0.4%)
Sankyo Pharmaceuticals 172,000 4,133,676
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.8%)
Mitsubishi Heavy Inds 1,277,000 9,267,189
_____________________________________________________________________________________________________________________________
Industrial transportation (0.7%)
Nippon Express 734,000 7,256,324
_____________________________________________________________________________________________________________________________
Insurance (1.2%)
Tokio Marine & Fire 1,160,000 13,800,520
____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.4%)
Sega 103,100 (c) 4,734,868
_____________________________________________________________________________________________________________________________
Machinery (0.5%)
Fuji Machine Mfg 227,000 5,536,530
______________________________________________________________________________________________________________________________
Media (0.4%)
Tokyo Broadcast 275,000 4,416,775
______________________________________________________________________________________________________________________________
Metals (1.4%)
Hitachi Metals 442,000 5,363,670
Nippon Steel 2,494,000 9,908,662
_____________
Total 15,272,332
_____________________________________________________________________________________________________________________________
Paper & packaging (0.9%)
Nippon Paper Inds 1,230,000 9,555,870
_____________________________________________________________________________________________________________________________
Real estate (1.1%)
Mitsui Fudosan 1,090,000 12,682,150
_____________________________________________________________________________________________________________________________
Retail (1.3%)
Amway Japan 42,000 1,564,038
Chiyoda 200 3,450
Ito-Yokado 140,000 7,545,440
Marui 318,000 4,880,664
____________
Total 13,993,592
_____________________________________________________________________________________________________________________________
Telecommunications (0.9%)
DDI 1,188 10,459,488
_____________________________________________________________________________________________________________________________
Wire & cable (2.4%)
Nippon Denso 360,000 (b) 7,238,520
NTN Corp 1,154,000 7,633,710
Sumitomo Electric Inds 922,000 12,505,086
_____________
Total 27,377,316
_____________________________________________________________________________________________________________________________
Miscellaneous (1.0%)
Itochu 1,694,000 11,487,014
_____________________________________________________________________________________________________________________________
Malaysia (2.7%)
Banks and savings & loans (0.5%)
Malayan Banking 777,500 5,315,768
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.4%)
Resorts World 768,000 4,038,912
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.8%)
Sime Darby 3,273,600 8,344,406
_____________________________________________________________________________________________________________________________
Utilities-electric (0.4%)
Tenaga Nasional 1,118,000 4,975,100
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.6%)
Telekom Malaysia 1,018,000 7,001,804
_____________________________________________________________________________________________________________________________
Mexico (1.7%)
Building materials (1.0%)
Cemex & Telmex Series B ADR 1,107,025 (c) 7,057,284
Empresas ICA Sociedad Controladora ADR 501,500 (c) 4,262,750
____________
Total 11,320,034
______________________________________________________________________________________________________________________________
Financial Services (0.1%)
Banorte Series C 774,000 (b) 1,008,754
______________________________________________________________________________________________________________________________
Retail (0.1%)
Benavides B Shares 627,800 725,862
_____________________________________________________________________________________________________________________________
Telecommunications (0.5%)
Telefonos de Mexico 184,600 5,584,150
_____________________________________________________________________________________________________________________________
Netherlands (4.2%)
Chemicals (0.8%)
Akzo Nobel 76,000 (c) 8,810,984
_____________________________________________________________________________________________________________________________
Food (1.4%)
Unilever 119,000 15,919,225
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.3%)
Stork VMF 139,106 3,780,901
_____________________________________________________________________________________________________________________________
Insurance (0.3%)
Intl Nederlanden Groep 63,037 3,321,104
_____________________________________________________________________________________________________________________________
Media (1.4%)
Elsevier 1,410,000 (c) 15,438,090
_____________________________________________________________________________________________________________________________
New Zealand (1.7%)
Multi-industry conglomerates (0.7%)
Fletcher Challenge 2,980,200 8,010,778
_____________________________________________________________________________________________________________________________
Paper & packaging (1.0%)
Carter Holt Harvey 4,383,700 11,134,598
_____________________________________________________________________________________________________________________________
Norway (0.6%)
Energy (0.4%)
Saga Petroleum Cl A 305,980 4,440,994
_____________________________________________________________________________________________________________________________
Industrial transportation (0.2%)
First Olsen Tankers 498,000 (b) 2,795,274
_____________________________________________________________________________________________________________________________
Philippines (0.5%)
Utilities-telephone
Philippines Long Distance Telephone ADR 80,000 (c) 5,100,000
_____________________________________________________________________________________________________________________________
Singapore (4.3%)
Banks and savings & loans (1.6%)
Development Bank Singapore 1,010,000 10,798,920
Overseas Union Bank 1,208,625 6,981,018
_____________
Total 17,779,938
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.5%)
Fraser & Neave 483,200 5,305,053
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.7%)
Sembawang Shipyard 1,077,000 (c) 7,380,681
_____________________________________________________________________________________________________________________________
Industrial transportation (0.7%)
Keppel 1,001,000 (c) 8,117,109
_____________________________________________________________________________________________________________________________
Real Estate (0.8%)
DBS Land 3,390,000 (c) 9,339,450
_____________________________________________________________________________________________________________________________
Spain (3.3%)
Banks and savings & loans (0.7%)
Banco Popular de Espana 54,190 7,406,147
_____________________________________________________________________________________________________________________________
Energy (1.0%)
Repsol 366,850 11,684,539
_____________________________________________________________________________________________________________________________
Telecommunications (1.6%)
Telefonica 1,483,800 18,143,906
_____________________________________________________________________________________________________________________________
Sweden (1.7%)
Health care (0.4%)
Astra Cl A 166,950 4,868,596
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.2%)
Asea B Free Shares 102,400 8,620,749
Ericsson (LM) B Free Shares 70,820 4,685,876
_____________
Total 13,306,625
_____________________________________________________________________________________________________________________________
Paper & Packaging (0.1%)
SCA B Free Shares 90,900 (b) 1,613,021
_____________________________________________________________________________________________________________________________
Switzerland (1.9%)
Banks and savings & loans (0.9%)
Swiss Bank 63,200 (b) 10,484,248
_____________________________________________________________________________________________________________________________
Health care (1.0%)
Sandoz 16,550 10,794,572
_____________________________________________________________________________________________________________________________
Thailand (0.5%)
Banks and savings & loans
Siam Commercial Bank 600,000 5,074,200
_____________________________________________________________________________________________________________________________
United Kingdom (15.5%)
Banks and Savings & Loans (1.1%)
Natl Westminster 1,445,750 12,570,796
_____________________________________________________________________________________________________________________________
Beverages & tobacco (1.3%)
BAT Inds 696,000 5,251,320
Guinness 1,277,200 9,646,692
_____________
Total 14,898,012
_____________________________________________________________________________________________________________________________
Energy (0.6%)
Shell Transport & Trading 578,000 6,848,144
_____________________________________________________________________________________________________________________________
Health care (1.9%)
Glaxo Holdings 935,000 11,047,960
SmithKline Beecham 1,343,000 10,619,101
_____________
Total 21,667,061
_____________________________________________________________________________________________________________________________
Leisure (2.3%)
Rank Organisation 2,801,000 19,105,621
Thorn Emi 385,300 7,047,522
_____________
Total 26,153,143
_____________________________________________________________________________________________________________________________
Machinery (1.7%)
Siebe 2,037,500 18,453,638
_____________________________________________________________________________________________________________________________
Metals (0.9%)
RTZ 756,300 9,611,817
_____________________________________________________________________________________________________________________________
Multi-industrial (1.6%)
BTR 1,780,000 9,419,760
Framlington Maghreb Fund Units 47,400 (b) 2,370,000
Hanson 1,590,000 6,042,000
_____________
Total 17,831,760
_____________________________________________________________________________________________________________________________
Retail (2.9%)
Argyll Group 2,350,000 10,812,350
Next 4,250,000 21,636,750
_____________
Total 32,449,100
_____________________________________________________________________________________________________________________________
Transportation (1.2%)
British Airways 2,140,800 13,793,174
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $935,550,911) $ 999,585,977
_____________________________________________________________________________________________________________________________
</TABLE>
Other (0.1%)
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Australia (0.1%)
Broken Hill Proprietary
Warrants 1,469,000 $ 913,571
_____________________________________________________________________________________________________________________________
Japan (--)
Fujitsu
Warrants 9,600 643,680
______________________________________________________________________________________________________________________________
Total other
(Cost: $3,038,102) $ 1,557,251
______________________________________________________________________________________________________________________________
</TABLE>
Bond (0.5%)
<TABLE>
<CAPTION>
______________________________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
______________________________________________________________________________________________________________________________
<S> <C> <C>
Malaysia
Renong
(U.S. Dollar)
2.50% Cv 2005 $5,500,000 (d) $ 5,568,750
______________________________________________________________________________________________________________________________
Total bond
(Cost: $5,505,850) $ 5,568,750
</TABLE>
Short-term securities (10.9%)
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.4%)
Federal Natl Mtge Assn
Disc Note
05-30-95 5.88% $5,000,000 $ 4,974,813
_____________________________________________________________________________________________________________________________
Commercial paper (10.5%)
Amer General
05-22-95 6.01 3,100,000 (e) 3,088,156
Amer General Investment
05-26-95 5.98 6,200,000 (e) 6,172,332
AON
05-16-95 6.01 5,000,000 4,985,904
AVCO
06-20-95 6.06 3,400,000 3,370,042
BBV Delaware
05-08-95 6.02 700,000 698,952
Bell Atlantic Network Funding
05-25-95 5.99 2,600,000 2,588,809
Cargill Financial Markets
05-24-95 5.98 6,500,000 (e) 6,473,142
Ciesco
05-18-95 6.00 3,500,000 3,488,972
05-22-95 6.01 3,100,000 3,088,176
Colgate Palmolive
05-15-95 6.02 4,000,000 (e) 3,989,369
05-17-95 6.01 4,000,000 (e) 3,988,060
Commerzbank US Finance
05-01-95 6.03 2,800,000 2,799,067
Deutsche Bank Financial
05-22-95 5.98 5,000,000 4,980,993
Metlife Funding
05-18-95 6.00 2,000,000 1,993,698
Mobil Australia Finance
05-04-95 5.99 6,000,000 (e) 5,995,025
05-23-95 6.00 5,500,000 5,478,110
Motorola
05-26-95 6.00 6,500,000 6,470,945
PACCAR Financial
05-02-95 6.01 6,000,000 5,997,010
05-12-95 6.01 3,500,000 3,492,442
05-23-95 5.99 1,700,000 1,693,245
Penney (JC)
05-09-95 6.00 1,900,000 1,896,849
05-15-95 6.00 5,000,000 4,986,733
05-30-95 5.99 5,500,000 5,471,820
Pitney Bowes Credit
05-25-95 6.00 5,500,000 5,476,326
Rohm & Haas Finance
05-22-95 6.00 3,000,000 2,988,558
Sara Lee
05-05-95 5.99 3,400,000 3,396,617
Toyota Motor
05-10-95 6.00 6,500,000 6,488,143
USAA Capital
05-19-95 6.01 5,800,000 5,780,763
_____________
Total 117,318,258
_______________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $122,293,562) $ 122,293,071
______________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,066,388,425)(f) $1,129,005,049
______________________________________________________________________________________________________________________________
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 5 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 April 30, 1995, the cost of securities for federal income tax purposes was approximately $1,066,388,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $110,377,000
Unrealized depreciation (47,760,000)
_______________________________________________________________________________________
Net unrealized appreciation $62,617,000
________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
Directors and officers
Directors and officers of the fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested directors who are officers and/or employees of American
Express Financial Corporation
William H. Dudley
Executive vice president, American Express Financial Corporation.
David R. Hubers
President and chief executive officer, American Express Financial
Corporation.
John R. Thomas
Senior vice president, American Express Financial Corporation.
_____________________________________________________________________
Officers who also are officers and or/employees of American Express
Financial Corporation
Peter J. Anderson
Vice president of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Other officer
Leslie L. Ogg
Vice president, general counsel and secretary of all funds in the
IDS MUTUAL FUND GROUP .
<PAGE>
PAGE
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposit (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income.
Secondary objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia<PAGE>
PAGE
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher rated,
lower risk bond categories, or the equivalent, and in government bonds.
(icon of) greek column
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the timely
payment of principal and interest by the U.S. government, its agencies
and instrumentalities. Seeks a high level of current income and
safety of principal consistent with its type of investments.
(icon of) federal building
Tax-exempt income investments
These funds provide tax-free income by investing in municipal bonds.
The income is generally free from federal income tax. Risk varies
by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed<PAGE>
PAGE
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities
to provide income to residents of each respective state that is
exempt from federal, state and local income taxes. (New York
is the only state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk bond
categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
Growth and income investments
These funds focus on securities of medium to large, well-established
companies that offer long-term growth of capital and reasonable income
from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20%
of its assets in the U.S. market.
(icon of) three flags
IDS 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
<PAGE>
PAGE
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of
capital and income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high current
income and, secondarily, to benefit from the growth potential offered
by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice<PAGE>
PAGE
Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive 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.
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IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
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Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic companies
that explore for, mine and process or distribute gold and other
precious metals. This is the most aggressive and most speculative
IDS mutual fund.
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For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your financial
advisor or writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534. Read it carefully before you invest or send
money.
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Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota:
800-437-3133
Mpls./St. Paul area:
671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone phones only), including current
fund prices and performance, account values and recent account
transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS International Fund
IDS Tower 10
Minneapolis, MN 55440-0010
