<PAGE>
PAGE 1
IDS International Fund
1995 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.)
Distributed by
American Express
Financial Advisors Inc.<PAGE>
PAGE 2
(Icon of) three flags
A world of opportunity
There's a new recognition among investors that the stock makret
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.<PAGE>
PAGE 3
Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the Fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the Fund in detail.
1995 annual report
From the president 4
From the portfolio managers 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
1995 prospectus
The fund in brief
Goal 3p
Types of Fund investments and their risks 3p
Manager and distributor 3p
Portfolio managers 3p
Alternative purchase arrangements 4p
Sales charge and fund expenses 5p
Performance
Financial highlights 7p
Total returns 9p
Investment policies and risks 11p
Facts about investments and their risks 12p
Alternative investment option 16p
Valuing Fund shares 16p
How to purchase, exchange or redeem shares
Alternative purchase arrangements 17p
How to purchase shares 20p
How to exchange shares 23p
How to redeem shares 23p
Reductions and waivers of the sales charge 28p
Special shareholder services
Services 33p
Quick telephone reference 33p
Distributions and taxes
Dividend and capital gain distributions 34p
Reinvestments 35p<PAGE>
PAGE 4
Taxes 36p
How to determine the correct TIN 38p
How the fund is organized
Shares 39p
Voting rights 39p
Shareholder meetings 39p
Directors and officers 39p
Investment manager and transfer agent 41p
Distributor 43p
About American Express Financial Corporation
General information 45p
Appendix
Descriptions of derivative instruments 46p<PAGE>
PAGE 5
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
If you're an experienced investor, you know that 1995 was an
unusually strong year for the U.S. financial markets. Perhaps just
as important, you know that history shows that bull markets don't
last forever. Though they're often unpredictable, declines--
whether they're brief or long-lasting, moderate or substantial--are
always a possibility.
That fact reinforces the need for investors to review periodically
their long-term goals and assess whether their investment program
remains on track to achieving them. Your quarterly investment
statements are one part of that monitoring process. The other is a
meeting with your American Express financial advisor. That becomes
even more important if there's a major change in your financial
situation or in the financial markets.
William R. Pearce
From the portfolio managers
Despite occasional, brief advances, foreign stock markets were
disappointing during the past 12 months, as a surging U.S. market
attracted the bulk of investors' capital. For the fiscal year
(November 1994 through October 1995), IDS International Fund's
return was -1.7%. While this was disappointing, we managed to
avoid major losses in the more volatile markets, such as Mexico.
In Japan, where for some time we have kept the largest portfion of
the portfolio, stocks struggled throughout most of the period in
the face of an unresponsive economy, a massive earthquake and
political turmoil. Those problems combined to drive down the
Japanese market in the first half of 1995.
Encouraging signs in Japan
At mid-year, with stock prices attractively low, we decided to
increase our investment in Japan based on several positive
developments. First, the Bank of Japan (comparable to the Federal
Reserve Board in the U.S.) reduced interest rates and expanded the
money supply. Second, the government provided a fiscal stimulus.
Third, industrial deregulation is finally being taken seriously by
government officials, a factor that bodes especially well for the
prospectus of telecommunications companies. Lastly, stocks of
Japanese technology companies, in response to increasing global
product demand, have begun to perform quite well in recent months.
(TDK, a Fund holding, is a prominent example.)
<PAGE>
PAGE 6
Turning to Europe, we slightly reduced our investments in the
United Kingdom, following good gains. Two of the Fund's largest
holdings, Glaxo and Sieve, performed especially well. In
continental Europe, we have de-emphasized stocks of companies whose
business prospects are closely tied to the strength of the economy.
This reflects our view that the economy in that part of the world
will be less than robust. Consequently, we are holding an above-
average amount of growth stocks, and have increased our exposure to
stocks of financial services companies, which we believe will
benefit from lower interest rates.
Portfolio shifts in Latin America
Among the smaller markets, we added to Mexico last spring, prior to
a subsequent stock rally in that country. Later, we reduced our
exposure to Mexico and Latin America as a whole, based on our
forecast for an even weaker Mexican economy and deterioriating
corporate profits. If attractive buying opportunities present
themselves, we may add to our holdings.
Looking forward, market declines in the months ahead would be
regarded as buying opportunities--that is, a chance to add stocks
of sound companies at lower-than-normal prices. We believe that
will ultimately prove rewarding for the Fund and its investors when
international markets resume their history of providing attractive
long-term returns.
Peter Lamaison
Paul Hopkins
Class A
12-month performance
(All figures per share)
Net asset value (NAV)
Oct. 31, 1995 $ 9.97
Oct. 31, 1994 $10.84
Decrease $ (.87)
Distributions
Nov. 1, 1994-Oct. 31, 1995
From income $ 0.23
From capital gains $ 0.43
Total distributions $ 0.66
Total return** (1.7%)***
Class B
March 20, 1995-Oct. 31, 1995
(All figures per share)
Net asset value (NAV)
Oct. 31, 1995 $ 9.92
Oct. 31, 1994 $ 8.92
Increase $ 1.00
<PAGE>
PAGE 7
Distributions
March 20, 1995*-Oct. 31, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return** +11.2%***
Class Y
March 20, 1995-Oct. 31, 1995
(All figures per share)
Net asset value (NAV)
Oct. 31, 1995 $ 9.98
Oct. 31, 1994 $ 8.92
Increase $ 1.06
Distributions
March 20, 1995*-Oct. 31, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return** +11.9%***
*Inception date.
**The prospectus discusses the effect of sales charges, if any, on
the various classes.
***The total return is a hypothetical investment in the Fund with
all distributions reinvested.<PAGE>
PAGE 8
<TABLE>
<CAPTION>
IDS International Fund, Inc.
Your fund's ten largest holdings
(Pie chart) The ten holdings listed here make up 16.26% of the fund's net assets
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Oct. 31, 1995)
______________________________________________________________________________________________________________
<S> <C> <C>
Glaxo Holdings (United Kingdom) 2.20% $25,948,962
The company is engaged in the research, development, manufacture
and distribution of pharmaceuticals, which are marketed primarily to
wholesale drug distributors, hospitals phamacies and health
maintenance organizations.
Credit Commercial de France (France) 1.78 21,069,630
This company is the parent company of a banking group primarily engaged
in retail banking, investment banking, asset management
and international private banking.
Siebe (United Kingdom) 1.65 19,511,080
A United Kingdom engineering company with significant
U.S. presence via Foxboro in control devices and process
systems.
Swiss Bank (Switzerland) 1.65 19,455,525
One of the largest Swiss banks, with an international investment-
banking business centered primarily in London and New York.
Telefonica (Spain) 1.59 18,727,040
Spain's monopoly operator of basic telephone and
telex services.
Elsevier (Netherlands) 1.54 18,231,300
The world's most profitable publisher, operating around
the globe.
TDK (Japan) 1.50 17,685,080
A leading producer of audio and video tapes and electronic parts.
Mitsubishi Heavy Inds (Japan) 1.48 17,444,940
Japan's largest shipbuilder and comprehensive machinery maker. Its
lines range from ships and nuclear power plants to aerospace and
military equipment.
Argyll Group (United Kingdom) 1.44 17,005,467
The company is engaged in food retailing and wholesaling in the
United Kingdom through the operation of Safeway and Presto
supermarkets.
Lyonnaise des Eaux Dumez (France) 1.43 16,840,766
A leading water utility that has diversified into
communications and construction.
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 9
Making the most of your fund
Average annual total return
(as of Oct. 31, 1995)
Class A
1 year 5 years 10 years
- -6.58% +5.93% +11.25%
Total returns for Class A, Class B and Class Y for the period from
March 20, 1995 to Oct. 31, 1995 were +6.16%, +6.21% and +11.86%,
respectively. March 20, 1995 was the inception date for Class B
and Class Y. Total return for Class A is shown for comparative
purposes. The performance of Class B and Class Y will vary from
the performance of Class A based on differences in sales charges
and fees.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures for Class A and Class B reflect the effect of the maximum
5% salers charge. This was a period of widely fluctuating security
prices. Past performance is no guarantee of future results.
Build your assets systematically
One of the best ways to invest in the Fund is by dollar-cost
averaging -- a time-tested strategy that can make market
fluctuations work for you. To dollar-cost average, simply invest a
fixed amount of money regularly. You'll automatically buy more
shares when the Fund's share price is low, fewer shares when it is
high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low...
<PAGE>
PAGE 10
(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.
Your Fund's long-term performance
Three ways to benefit from a mutual fund:
o your shares increase in value when the Fund's investments do
well
o you receive capital gains when the gains on investments sold
by the Fund exceed losses
o you receive income when the Fund's stock dividends, interest
and short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the Fund or another fund.
Class A*
How your $10,000 has grown in IDS International Fund
Average annual total return Lipper International
(as of Oct. 31, 1995) Fund Index
1 year 5 years 10 years
- -6.58% +5.93% +11.25% $29,047
International
World Index Fund
$9,500
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95
*The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 20, 1995 to Oct. 31, 1995 were +6.16%, +6.21% and
+11.86%, respectively. March 20, 1995 was the inception date for
Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 10/31/85 to 10/31/95. Returns do not
reflect taxes payable on distributions. Reinvestment of all income
and capital gain distributions for the Fund, with a value of
$14,368. Also see "Performance" in the Fund's current prospectus.
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.
<PAGE>
PAGE 11
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 graph above you can see how the Fund's total return compared
to two widely cited performance indexes, the World Index and the
Lipper International Fund Index. In comparing International Fund
to the two indexes, you should take account of 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 pay would reduce your
total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 12
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, 1995, and the
related statement of operations for the year then ended and the
statements of changes in net assets for each of the years in the
two-year period ended October 31, 1995, and the financial
highlights for each of the years in the ten year period ended
October 31, 1995. These financial statements and the financial
highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and
sold but not received or delivered, 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, 1995, and the results of
its operations for the year then ended and the changes in its net
assets for each of the years in the two-year period ended October
31, 1995, and the financial highlights for the periods stated in
the first paragraph above, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
December 1, 1995<PAGE>
PAGE 13
<TABLE>
<CAPTION>
Statement of assets and liabilities
IDS International Fund, Inc.
Oct. 31, 1995
______________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,145,440,977) $1,205,498,150
Dividends and accrued interest receivable 4,008,614
Receivable for investment securities sold 18,205,263
Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 6) 186,759
U.S. government securities held as collateral (Note 5) 42,429,193
_____________________________________________________________________________________________________________
Total assets 1,270,327,979
_____________________________________________________________________________________________________________
Liabilities
____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 4,924,915
Payable for investment securities purchased 9,393,049
Payable upon return of securities loaned (Note 5) 75,086,493
Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 6) 24,110
Accrued investment management services fee 96,033
Accrued distribution fee 28,819
Accrued service fee 21,301
Accrued transfer agency fee 31,172
Accrued administrative services fee 6,493
Other accrued expenses 530,076
_____________________________________________________________________________________________________________
Total liabilities 90,142,461
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,180,185,518
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 1,185,580
Additional paid-in capital 1,085,826,104
Undistributed net investment income 15,872,326
Accumulated net realized gain (Note 1) 16,942,714
Unrealized appreciation of investments and on translation of assets and
liabilities in foreign currencies (Note 6) 60,358,794
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $1,180,185,518
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $ 767,848,971
Class B $ 354,102,511
Class Y $ 58,234,036
Net asset value per share of outstanding capital stock: Class A shares 77,025,745 $ 9.97
Class B shares 35,696,660 $ 9.92
Class Y shares 5,835,627 $ 9.98
See accompanying notes to financial statements. <PAGE>
PAGE 14
Financial statements
Statement of operations
IDS International Fund, Inc.
Year ended Oct. 31, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income:
Dividends (net of foreign taxes withheld of $2,846,846) $19,888,109
Interest 5,356,778
_____________________________________________________________________________________________________________
Total income 25,244,887
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 7,749,440
Distribution fee
Class A 278,932
Class B 1,594,704
Transfer agency fee 2,483,906
Incremental transfer agency fee - Class B 41,698
Service fee
Class A 815,172
Class B 371,647
Administrative services fee 362,062
Compensation of directors 34,645
Compensation of officers 10,423
Custodian fees 1,072,367
Postage 253,137
Registration fees 269,337
Reports to shareholders 179,777
Audit fees 35,500
Administrative 10,142
Other 13,110
_____________________________________________________________________________________________________________
Total expenses 15,575,999
Earnings credits on cash balances (Note 2) (22,108)
_____________________________________________________________________________________________________________
Total net expenses 15,553,891
_____________________________________________________________________________________________________________
Investment income -- net 9,690,996
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including gain of $3,564,924 from foreign currency transactions) (Note 3) 20,295,838
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies (6,709,363)
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 13,586,475
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $23,277,471
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 15
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS International Fund,Inc.
Year ended Oct. 31,
_____________________________________________________________________________________________________________
Operations and distributions 1995 1994
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 9,690,996 $ 4,270,204
Net realized gain on investments and foreign currency 20,295,838 45,328,394
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies (6,709,363) 11,598,100
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 23,277,471 61,196,698
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A -- (4,463,645)
Net realized gains
Class A (48,445,502) (7,436,433)
Excess distribution of realized gains (Note 1) (1,409,821) --
_____________________________________________________________________________________________________________
Total distributions (49,855,323) (11,900,078)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 473,751,064 476,589,212
Class B shares 57,808,041 --
Class Y shares 74,536,869 --
Fund merger (Note 7)
Class A shares 1,633,118 --
Class B shares 305,517,151 --
Reinvestment of distributions at net asset value
Class A shares 49,509,013 11,812,164
Payments for redemptions
Class A shares (487,220,120) (181,295,320)
Class B shares (Note 2) (42,486,726) --
Class Y shares (22,228,850) --
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 410,819,560 307,106,056
_____________________________________________________________________________________________________________
Total increase in net assets 384,241,708 356,402,676
Net assets at beginning of year 795,943,810 439,541,134
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$15,872,326 and $998,373) $1,180,185,518 $795,943,810
______________________________________________________________________________________________________________
See accompanying netes to financial statements.
</TABLE>
<PAGE>
PAGE 16
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.
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. Class B 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) differs 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.
Option 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<PAGE>
PAGE 17
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 futures contracts traded on any
U.S. or foreign exchange. The Fund also may buy or write put and
call options on these futures contracts. Risks of entering into
futures contracts and related options include the possibility that
there may be an illiquid market and that a change in the value of
the contract or option may not correlate with changes in the value
of the underlying securities.
Upon entering into a futures contract, the Fund is required to
deposit either cash or securities in an amount (initial margin)
equal to a certain percentage of the contract value. Subsequent
payments (variation margin) are made or received by the Fund each
day. The variation margin payments are equal to the daily changes
in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the
contract is closed or expires.
Foreign currency translations and
foreign currency contracts
Securities and other assets and liabilities denominated in foreign
currencies are translated daily into U.S. dollars at the closing
rate of exchange. Foreign currency amounts related to the purchase
or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. The effect of changes in
foreign exchange rates on realized and unrealized security gains or
losses is reflected as a component of such gains or losses. In the
statement of operations, net realized gains or losses from foreign
currency transactions may arise from sales of foreign currency,
closed forward contracts, exchange gains or losses realized between
the trade date and settlement dates on securities transactions, and
other translation gains or losses on dividends, interest income and
foreign withholding taxes.
The Fund may enter into forward foreign currency exchange contracts
for operational purposes and to protect against adverse exchange
rate fluctuation. The net U.S. dollar value of foreign currency
underlying all contractual commitments held by the Fund and the
resulting unrealized appreciation or depreciation are determined
using foreign currency exchange rates from an independent pricing
service. The Fund is subject to the credit risk that the other
party will not complete the obligations of the contract.
<PAGE>
PAGE 18
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.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, undistributed net investment
income has been increased by $5,182,957 and accumulated net
realized gain has been increased by $2,129,417 resulting in a net
reclassification adjustment to decrease additional paid-in capital
by $7,312,374.
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 AEFC 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 0.46% 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 is less than 1%, the adjustment will be zero. The
adjustment decreased the fee by $82,830 for the year ended Oct. 31,<PAGE>
PAGE 19
1995. From its fees, AEFC pays IDS International, Inc. a
subadvisory fee equal to 0.35% of the Fund's average daily net
assets.
Also under terms of the prior agreement, the Fund paid AEFC 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.
Effective March 20, 1995, when the Fund began offering multiple
classes of shares, the Fund entered into agreements with AEFC for
managing its portfolio, providing administrative services and
serving as transfer agent as follows: Under its Investment
Management Services Agreement, AEFC determines which securities
will be purchased, held or sold. The management fee is a percentage
of the Fund's average 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 AEFC 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, AEFC maintains
shareholder accounts and records. The Fund pays AEFC 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 a Plan and
Agreement of Distribution, 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.
AEFC will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges received by American Express Financial Advisors Inc.
for distributing Fund shares were $3,346,448 for Class A and
$247,131 for Class B for the year ended Oct. 31, 1995. The Fund
also pays custodian fees to American Express Trust Company, an
affiliate of AEFC.
During the year ended Oct. 31, 1995, the Fund's custodian and
transfer agency fees were reduced by $22,108 as a result of
earnings credits from overnight cash balances.
<PAGE>
PAGE 20
The Fund has a retirement plan for its independent directors. Upon
retirement, directors receive monthly payments equal to one-half of
the retainer fee for as many months as they served as directors up
to 120 months. There are no death benefits. The plan is not funded,
but the Fund recognizes the cost of payments during the time the
directors serve on the board. The retirement plan expense amounted
to $8,136 for the year ended Oct. 31, 1995.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $843,481,077 (including
$287,781,815 that was acquired in the Fund merger as described in
Note 7) and $478,213,579, respectively, for the year ended Oct. 31,
1995. Realized gains and losses are determined on an identified
cost basis.
___________________________________________________________________
4. Capital Share transactions
Transactions in shares of capital stock for the years indicated are
as follows:
<TABLE>
<CAPTION>
________________________________________________________________________________________
Year ended Oct. 31, 1995 Year ended
10/31/94
Class A Class B* Class Y* Class A
________________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 49,260,700 5,938,924 8,123,898 45,588,043
Fund merger 182,431 34,128,368 -- --
Issued for reinvested 5,230,747 -- -- 1,145,483
distributions
Redeemed (51,075,225) (4,370,632) (2,288,271) (17,262,033)
_________________________________________________________________________________________
Net increase 3,598,653 35,696,660 5,835,627 29,471,493
*Inception date was March 20, 1995.
_________________________________________________________________________________________
</TABLE>
5. Lending of portfolio securities
At Oct. 31, 1995, securities valued at $71,685,226 were
on loan to brokers. For collateral, the Fund received
$32,657,300 in cash and U.S. government securities
valued at $42,429,193. Income from securities lending
amounted to $406,736 for the year ended Oct. 31, 1995.
The risks to the Fund of securities lending are that the
borrower may not provide additional collateral when
required or return the securities when due.
<PAGE>
PAGE 21
<TABLE>
<CAPTION>
________________________________________________________
6. Foreign currency contracts
At Oct. 31, 1995, the Fund had entered into five foreign
currency exchange contracts that obligate the Fund to
deliver currencies at specified future dates. The
unrealized appreciation and/or depreciation on these
contracts is included in the accompanying financial
statements. The terms of the open contracts are as
follows:
Currency to be Currency to be Unrealized Unrealized
Exchange date delivered received appreciation depreciation
___________________________________________________________________________________________
<S> <C> <C> <C> <C>
Nov. 1, 1995 257,850,767 2,536,403 $ 13,649 $ --
Japanese Yen U.S. Dollar
Nov. 1, 1995 4,890,959 3,103,518 16,014 --
U.S. Dollar British Pound
Nov. 1, 1995 3,707,161 5,186,040 -- 23,109
U.S. Dollar Deutsche Mark
Nov. 2, 1995 2,141,925 841,945 -- 1,001
Malaysian Dollar U.S. Dollar
Jan. 31, 1996 31,346,220 28,003,323 157,096 --
Swiss Franc U.S. Dollar __________ _________
$186,759 $24,110
</TABLE>
7. Fund merger
At the close of business 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 International 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 Strategy - Worldwide Growth Fund shares and
net assets, IDS International Fund issued the following number of
shares:<PAGE>
PAGE 22
Shares Net Assets
Class A 182,431 $ 1,633,118
Class B 34,128,368 305,517,151
IDS Strategy - Worldwide Growth Fund's net assets at that date
consisted of capital stock of $323,503,918, unrealized depreciation
of $12,323,993, and accumulated net realized loss of $4,029,656.
___________________________________________________________________
8. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on pages 6 and 7 of the prospectus.
<PAGE>
PAGE 23
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
Oct. 31, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (92.4%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Argentina (0.9%)
Multi-industry conglomerates (0.9%)
Perez Naviera B Shares 2,509,860 $ 11,068,483
_____________________________________________________________________________________________________________________________
Australia (3.8%)
Banks and savings & loans (0.8%)
Westpac Banking 2,257,000 (c) 9,264,985
_____________________________________________________________________________________________________________________________
Energy (0.5%)
Broken Hill Proprietary 443,588 6,007,512
_____________________________________________________________________________________________________________________________
Metals (1.9%)
CRA 646,000 9,959,382
Pasminco 11,150,400 12,310,042
_____________
Total 22,269,424
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.6%)
Ampolex 3,699,720 (b,c) 7,325,446
____________________________________________________________________________________________________________________________
Brazil (0.5%)
Communications equipment
Telebras ADR 133,600 5,360,700
_____________________________________________________________________________________________________________________________
Canada (1.9%)
Aerospace & defense (0.5%)
Bombardier Cl B 494,000 6,083,971
_____________________________________________________________________________________________________________________________
Communications equipment (0.5%)
BCE Mobile 192,250 (b) 5,775,749
_____________________________________________________________________________________________________________________________
Electronics (0.5%)
Northern Telecom 163,800 5,896,800
_____________________________________________________________________________________________________________________________
Energy (0.4%)
Rennaissance Energy 235,400 (b) 5,205,242
_____________________________________________________________________________________________________________________________
Chile (0.6%)
Utilities-telephone
Telefonos de Chile ADR 93,000 (c) 6,701,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 24
Denmark (0.8%)
Utilities-telephone
Tele Danmark B Shares 175,000 9,128,700
_____________________________________________________________________________________________________________________________
France (8.4%)
Automotive related (0.4%)
Peugeot 38,250 (b) 4,994,379
_____________________________________________________________________________________________________________________________
Banks and savings & loans (2.1%)
Banque Nationale de Paris 102,400 4,225,229
Credit Commercial de France 423,000 (b) 21,069,630
_____________
Total 25,294,859
_____________________________________________________________________________________________________________________________
Building materials (0.7%)
Lafarge-Coppee (Bearer) 119,491 7,938,265
_____________________________________________________________________________________________________________________________
Electronics (0.4%)
SGS Thomson 111,612 (b) 5,159,041
_____________________________________________________________________________________________________________________________
Energy (2.0%)
Societe Elf Aquitaine 226,880 15,486,375
Total Petroleum Cl B 130,580 (c) 8,088,778
_____________
Total 23,575,153
_____________________________________________________________________________________________________________________________
Food (0.5%)
Danone 38,000 6,083,420
_____________________________________________________________________________________________________________________________
Insurance (0.5%)
Union des Assurances Federales 59,000 6,288,810
_____________________________________________________________________________________________________________________________
Metals (0.4%)
Usinor Sacilor 350,000 (b) 5,237,050
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.4%)
Lyonnaise des Eaux Dumez 172,240 16,840,766
_____________________________________________________________________________________________________________________________
Germany (1.9%)
Banks and savings & loans (0.9%)
Commerzbank 46,500 (c) 10,762,006
_____________________________________________________________________________________________________________________________
Chemicals (0.5%)
Hoechst 24,250 6,368,681
_____________________________________________________________________________________________________________________________
Retail (0.5%)
Karstadt 13,460 5,870,875
_____________________________________________________________________________________________________________________________
Hong Kong (2.9%)
Multi-industry conglomerates (2.0%)
Hutchison Whampoa 2,452,000 13,508,068
Swire Pacific Cl A 1,351,000 10,133,851
____________
Total 23,641,919
_____________________________________________________________________________________________________________________________
Real estate (0.5%)
Sun Hung Kai Properties 797,000 6,364,842
_______________________________________________________________________________________________________________________
<PAGE>
PAGE 25
Retail (0.4%)
Dairy Farm Intl 5,264,000 (c) 4,316,480
_____________________________________________________________________________________________________________________________
India (0.2%)
Multi-industry conglomerates
India Fund 237,800 1,991,575
_____________________________________________________________________________________________________________________________
Italy (2.7%)
Automotive & related (0.3%)
Fiat 1,058,000 3,446,964
____________________________________________________________________________________________________________________________
Communications equipment (1.8%)
Stet Risp 3,332,000 7,267,092
Telecom Italia 4,394,000 6,674,486
Telecom Italia Mobil 4,394,000 7,377,526
_____________
Total 21,319,104
_____________________________________________________________________________________________________________________________
Insurance (0.6%)
INA 4,999,200 6,573,948
_____________________________________________________________________________________________________________________________
Japan (27.5%)
Banks and savings & loans (2.5%)
Sakura Bank 840,000 8,135,400
Sanwa Bank 630,000 10,724,490
Sumitomo Trust & Banking 900,000 10,389,600
____________
Total 29,249,490
_____________________________________________________________________________________________________________________________
Building materials (3.4%)
Daiwa Kosho Lease 694,000 6,246,694
JGC 171,000 1,856,889
NGK Spark Plug 922,000 (c) 12,628,634
Nihon Cement 1,075,000 6,614,475
Raito Kogyo 386,000 7,930,370
Sho-Bond 160,000 (c) 5,150,080
____________
Total 40,427,142
_____________________________________________________________________________________________________________________________
Chemicals (1.0%)
Sekisui Chemical 895,000 11,645,740
_____________________________________________________________________________________________________________________________
Electronics (4.9%)
Hitachi 856,000 8,792,832
Rohm 243,000 (c) 14,763,951
Sanyo Electric 1,940,000 10,058,900
TDK 343,000 17,685,080
Yokogawa Electric 880,000 6,715,280
____________
Total 58,016,043
_____________________________________________________________________________________________________________________________
Health care (1.1%)
Banyu Pharmaceuticals 355,000 (c) 3,750,930
Sankyo Pharmaceuticals 420,000 9,245,460
_____________
Total 12,996,390
<PAGE>
PAGE 26
_____________________________________________________________________________________________________________________________
Industrial equipment & services (2.9%)
Ishikawajima-Harima Heavy Inds 1,073,000 4,324,190
Mitsubishi Heavy Inds 2,260,000 17,444,940
Secom 200,000 13,031,800
_____________
Total 34,800,930
___________________________________________________________________________________________________________________________
Insurance (1.0%)
Tokio Marine & Fire 1,160,000 11,915,520
____________________________________________________________________________________________________________________________
Metals (0.9%)
Hitachi Metals 900,000 11,094,300
_____________________________________________________________________________________________________________________________
Paper & packaging (0.7%)
Nippon Paper Inds 1,230,000 8,458,710
_____________________________________________________________________________________________________________________________
Real estate (1.5%)
Mitsubishi Estates 500,000 5,332,000
Mitsui Fudosan 1,050,000 12,019,350
_____________
Total 17,351,350
_____________________________________________________________________________________________________________________________
Retail (1.7%)
Amway Japan 68,000 (c) 2,594,608
Autobocs Seven 30,000 (b) 2,832,390
Chiyoda 200 3,933
Ito-Yokado 170,000 9,297,470
Marui 318,000 5,506,806
____________
Total 20,235,207
_____________________________________________________________________________________________________________________________
Telecommunications (1.0%)
DDI 1,400 11,355,053
_____________________________________________________________________________________________________________________________
Transportation (1.1%)
Nippon Express 1,000,000 8,120,000
Nippon Yusen 1,000,000 5,351,000
_____________
Total 13,471,000
_____________________________________________________________________________________________________________________________
Wire & cable (2.9%)
Nippon Denso 840,000 (b,c) 15,367,800
NTN 1,150,000 7,031,100
Sumitomo Electric Inds 1,000,000 11,544,000
_____________
Total 33,942,900
_____________________________________________________________________________________________________________________________
Miscellaneous (0.9%)
Itochu 1,694,000 10,042,032
_____________________________________________________________________________________________________________________________
Korea (0.4%)
Utilities-electric
Korea Electric Power ADR 173,000 4,260,125
_____________________________________________________________________________________________________________________________
Malaysia (2.3%)
Banks and savings & loans (0.4%)
Malayan Banking 598,500 4,828,100
<PAGE>
PAGE 27
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.6%)
Resorts World 1,355,000 6,611,045
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.7%)
Sime Darby 3,273,600 8,180,726
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.6%)
Telekom Malaysia 951,000 6,811,062
_____________________________________________________________________________________________________________________________
Mexico (0.5%)
Building materials (0.4%)
Empresas ICA Sociedad Controladora ADR 501,500 (c) 4,764,250
______________________________________________________________________________________________________________________________
Financial services (0.1%)
Banorte Series C 774,000 (b) 793,009
______________________________________________________________________________________________________________________________
Retail (-%)
Benavides B Shares 425,800 400,401
______________________________________________________________________________________________________________________________
Netherlands (4.9%)
Chemicals (1.1%)
Akzo Nobel 117,540 (c) 13,387,688
_____________________________________________________________________________________________________________________________
Food (1.0%)
Unilever 90,100 (c) 11,804,271
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.2%)
Stork VMF 94,952 (b) 2,298,978
_____________________________________________________________________________________________________________________________
Insurance (0.8%)
Intl Nederlanden Groep 160,354 (b) 9,563,994
_____________________________________________________________________________________________________________________________
Media (1.5%)
Elsevier 1,410,000 (c) 18,231,300
_____________________________________________________________________________________________________________________________
Textiles & apparel (0.3%)
Gucci 134,000 3,804,930
______________________________________________________________________________________________________________________________
New Zealand (1.4%)
Multi-industry conglomerates (0.7%)
Fletcher Challenge 2,980,200 7,888,589
Fletcher Challenge Forest 422,849 583,109
_____________
Total 8,471,698
_____________________________________________________________________________________________________________________________
Paper & packaging (0.7%)
Carter Holt Harvey 3,255,700 7,777,867
_____________________________________________________________________________________________________________________________
Norway (0.3%)
Industrial transportation
First Olsen Tankers 498,000 (b) 3,038,796
_____________________________________________________________________________________________________________________________
Philippines (0.7%)
Financial services (0.3%)
Philippine Commercial Intl Bank 364,380 2,983,908
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 28
Utilities-telephone (0.4%)
Philippines Long Distance Telephone ADR 80,000 (c) 4,490,000
_____________________________________________________________________________________________________________________________
Singapore (4.2%)
Airlines (0.9%)
Singapore Airlines 1,164,000 (c) 10,791,444
_____________________________________________________________________________________________________________________________
Banks and savings & loans (1.0%)
Development Bank Singapore 460,000 (c) 5,273,440
Overseas Union Bank 1,007,625 6,274,481
_____________
Total 11,547,921
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.5%)
Fraser & Neave 483,200 5,710,458
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.4%)
Sembawang Shipyard 1,077,000 (c) 5,220,219
_____________________________________________________________________________________________________________________________
Industrial transportation (0.8%)
Keppel 1,125,000 9,235,125
_____________________________________________________________________________________________________________________________
Real estate (0.6%)
DBS Land 2,304,000 6,815,232
_____________________________________________________________________________________________________________________________
Spain (4.2%)
Banks and savings & loans (1.7%)
Argentaria Bancaria De Espana 315,000 11,126,745
Banco Popular de Espana 54,190 8,611,550
_____________
Total 19,738,295
_____________________________________________________________________________________________________________________________
Energy (0.9%)
Repsol 366,850 10,958,910
_____________________________________________________________________________________________________________________________
Telecommunications (1.6%)
Telefonica 1,483,800 18,727,040
_____________________________________________________________________________________________________________________________
Sweden (2.1%)
Industrial equipment & services
Asea B Free Shares 102,400 10,100,326
Ericsson (LM) B Free Shares 620,000 13,164,460
Ericsson (LM) B New Shares 62,000 (b) 1,316,446
_____________
Total 24,581,232
_____________________________________________________________________________________________________________________________
Switzerland (2.8%)
Banks and savings & loans (1.6%)
Swiss Bank 95,000 (b) 19,455,525
_____________________________________________________________________________________________________________________________
Health care (1.2%)
Sandoz 16,550 13,644,830
_____________________________________________________________________________________________________________________________
Taiwan (0.5%)
Taiwan Fund 280,000 (c) 6,125,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 29
Thailand (1.5%)
Banks and savings & loans (0.6%)
Siam Commercial Bank 600,000 7,009,200
_____________________________________________________________________________________________________________________________
Building materials (0.9%)
TPI Polene 1,598,000 10,477,648
_____________________________________________________________________________________________________________________________
United Kingdom (14.5%)
Banks and Savings & Loans (1.2%)
Natl Westminster 1,448,400 14,472,413
______________________________________________________________________________________________________________________________
Beverages & tobacco (1.2%)
BAT Inds 263,000 2,157,915
Guinness 1,520,000 12,184,320
_____________
Total 14,342,235
_____________________________________________________________________________________________________________________________
Health care (2.2%)
Glaxo Holdings 1,923,000 25,948,962
_____________________________________________________________________________________________________________________________
Leisure (1.3%)
Rank Organisation 2,220,000 14,776,320
_____________________________________________________________________________________________________________________________
Machinery (1.7%)
Siebe 1,640,000 19,511,080
_____________________________________________________________________________________________________________________________
Metals (0.6%)
RTZ 523,000 7,235,182
_____________________________________________________________________________________________________________________________
Multi-industrial (0.2%)
Framlington Maghreb Fund Units 47,400 (b) 2,091,525
_____________________________________________________________________________________________________________________________
Retail (3.7%)
Argyll Group 3,340,300 17,005,467
Kingfisher 2,153,880 16,175,639
Next 1,629,000 10,559,178
_____________
Total 43,740,284
_____________________________________________________________________________________________________________________________
Transportation (1.4%)
British Airways 2,318,700 16,680,728
_____________________________________________________________________________________________________________________________
Utilities-telephone (1.0%)
Vodafone Group 2,823,700 11,650,586
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $1,030,957,538) $1,090,147,998
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 30
Other (0.1%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Japan
Fujitsu
Warrants 9,600 $ 1,604,927
______________________________________________________________________________________________________________________________
Total other
(Cost: $1,760,470) $ 1,604,927
______________________________________________________________________________________________________________________________
Bond (0.5%)
______________________________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
______________________________________________________________________________________________________________________________
Malaysia
Renong
(U.S. Dollar)
2.50% Cv 2005 $5,500,000 (d) $ 6,531,250
______________________________________________________________________________________________________________________________
Total bond
(Cost: $5,504,797) $ 6,531,250
______________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (9.1%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.5%)
Federal Home Loan Mtge Disc Note
11-15-95 5.64% $3,000,000 $ 2,993,455
Federal Natl Mtge Assn Disc Note
11-08-95 5.64 3,000,000 2,996,716
_____________
Total 5,990,171
_____________________________________________________________________________________________________________________________
Commercial paper (8.2%)
Alabama Power
12-12-95 5.74 5,500,000 5,464,296
ABN Amro North Amer Finance
11-16-95 5.75 7,000,000 6,983,317
CAFCO
11-03-95 5.76 4,000,000 (e) 3,998,729
CPC Intl
11-08-95 5.77 3,300,000 (e) 3,296,317
Emerson Electric
11-01-95 5.73 5,400,000 5,400,000
Fleet Funding
01-10-96 5.77 3,500,000 (e) 3,459,135
<PAGE>
PAGE 31
Gateway Fuel
12-07-95 5.74 3,600,000 3,579,480
Goldman Sachs Group
11-22-95 5.75 3,800,000 3,787,321
Harris Trust Bank Notes
11-28-95 5.75 5,000,000 5,000,000
Lincoln Natl
11-27-95 5.76 5,500,000 (e) 5,477,279
Mobil Australia Finance
11-09-95 5.75 5,410,000 (e) 5,403,123
11-22-95 5.75 5,906,000 (e) 5,886,294
Northern States Power
11-30-95 5.74 5,000,000 4,977,001
12-06-95 5.74 6,400,000 6,364,533
Penney (JC) Funding
11-10-95 5.74 4,900,000 4,893,017
11-27-95 5.75 2,400,000 2,390,103
SAFECO Credit
11-29-95 5.75 3,000,000 2,986,653
Sandoz
01-11-96 5.79 3,800,000 3,755,008
Siemens
11-17-95 5.76 3,300,000 3,291,611
12-01-95 5.73 6,000,000 5,971,550
Southwestern Bell Capital
11-14-95 5.75 4,700,000 4,690,292
_____________
Total 97,055,059
_______________________________________________________________________________________________________________________________
Letter of credit (0.4%)
Swiss Bank Corp-
Pemex Capital
12-18-95 5.75 4,200,000 4,168,745
______________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $107,218,172) $ 107,213,975
______________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,145,440,977)(f) $1,205,498,150
______________________________________________________________________________________________________________________________
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 Oct. 31, 1995, the cost of securities for federal income tax purposes was $1,145,888,636
and the aggregate gross unrealized appreciation and depreciation based on that cost was:<PAGE>
PAGE 32
Unrealized appreciation $122,248,877
Unrealized depreciation (62,639,363)
_______________________________________________________________________________________
Net unrealized appreciation $ 59,609,514
________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 33
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 34
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the
timely payment of principal and interest by the U.S. government,
its agencies and instrumentalities. Seeks a high level of current
income and safety of principal consistent with its type of
investments.
(icon of) federal building
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
<PAGE>
PAGE 35
(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
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stock of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
<PAGE>
PAGE 36
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high
current income and, secondarily, to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
<PAGE>
PAGE 37
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth potential
due to superiority in technology, marketing or management. The
fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial advisor or writing to American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.
<PAGE>
PAGE 38
Federal income tax information
IDS International Fund, Inc.
___________________________________________________________________
The Fund is required by the Internal Revenue Code of
1986 to tell its shareholders about the tax treatment
of the dividends it pays during its fiscal year.
The dividends listed below were reported to you on a
Form 1099-DIV, Dividends and Distributions, last
January. Shareholders should consult a tax advisor
on how to report distributions for state and local
purposes.
IDS International Fund, Inc.
Fiscal year ended Oct. 31, 1995
Class A
Income distribution
taxable as dividend income,
none qualifying for deduction by corporations.
Payable date Per share
Dec. 30, 1994 $0.23008
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 30, 1994 $0.42606
Total distributions $0.65614
The distribution of $0.65614 per share, payable
Dec. 30, 1994, consisted of $0.01850 derived from net
investment income, $0.21158 from net short-term capital
gains (a total of $0.23008 taxable as dividend income) and
$0.42606 from net long-term capital gains.
<PAGE>
PAGE 39
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
AMERICAN
EXPRESS
FINANCIAL
ADVISORS
IDS INTERNATIONAL FUND
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 40
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in a blue strip at the
top of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
