IDS
International Fund
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.
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
Board members and officers 28
IDS mutual funds 29
To our shareholders
William R. Pearce
President of the Fund
Paul Hopkins
Portfolio manager
From the president
If you're an experienced investor, you know that the past year or two has
been a generally strong period for financial assets. Perhaps just as
important, you also 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 periodically review their
long-term goals and examine 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 manager
IDS International Fund took advantage of upturns in several foreign stock
markets during the first half of the fiscal year, November 1995 through
April 1996. For the six months, the Fund's total return was approximately
13%, which includes a capital gain that was paid to shareholders last
December and reduced the Fund's net asset value by the same amount at that
time.
Although they experienced some fluctuations, foreign stock markets as a
whole exhibited somewhat more consistent performance than they have in
recent years. Reflecting that trend, the Fund recorded gains in each of the
past six months. Japan, the portfolio's largest exposure at about 30% of
its assets during the period, made the greatest contribution to our
performance. After a downturn early in 1996 caused by corporations selling
stocks to create gains prior to the end of Japan's fiscal year, that market
rebounded sharply in March and April.
To our shareholders
Improving economy benefits Japanese holdings
The principal reasons for the surge were increased consumer spending and a
lowering of interest rates by the Bank of Japan, two potentially positive
influences on Japan's long-suffering economy. Predictably, "cyclical"
stocks - those of companies whose fortunes are closely linked to economic
growth - responded especially well. In anticipation of that outcome, we
increased our cyclical exposure by adding Nippon Steel and Mitsubishi
Materials, both of which advanced strongly.
Although they made up a smaller portion of the portfolio, our stocks in the
"emerging" markets of Latin America and Southeast Asia did very well. We
added to Asia
in the fourth quarter of last year, and we continue to prefer these markets
over those in Latin America.
Overall outlook still positive
Heading into the second half of the fiscal year, prospects appear to be
brightening in Europe, and we have increased our exposure there
accordingly. For example, in Italy, a market that was up more than 13% from
January through April, we have added several stocks. Japan remains our main
emphasis, however, as we expect the positive momentum there to be sustained
in the months ahead. We're also holding our positions in the emerging
markets, where we believe additional gains will be realized. All in all,
the optimistic outlook we took into this fiscal year still seems
justifiable, and we are looking forward to reporting on the Fund's progress
in the annual report six months from now.
Paul Hopkins
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1996 $10.98
Oct. 31, 1995 $9.97
Increase $1.01
Distributions
Nov. 1, 1995 - April 30, 1996
From income $0.15
From capital gains $0.14
Total distributions $0.29
Total return* +13.3%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1996 $10.94
Oct. 31, 1995 $9.92
Increase $1.02
Distributions
Nov. 1, 1995 - April 30, 1996
From income $0.10
From capital gains $0.14
Total distributions$0.24
Total return* +12.9%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1996 $10.99
Oct. 31, 1995 $9.98
Increase $1.01
Distributions
Nov. 1, 1995 - April 30, 1996
From income $0.17
From capital gains $0.14
Total distributions $0.31
Total return* +13.4%**
*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
<TABLE>
<CAPTION>
IDS International Fund, Inc.
The Fund's ten largest holdings
(Pie chart) The ten holdings listed here make up 14.90% of the Fund's net assets
_____________________________________________________________________________________________________________
Percent Value
(of Fund's net assets)(as of April 30, 1996)
______________________________________________________________________________________________________________
<S> <C> <C>
Glaxo Wellcome (United Kingdom) 1.71% $24,128,069
This company is engaged in the research, development, manufacture
and distribution of pharmaceuticals, which are marketed primarily to
wholesale drug distributors, hospitals, pharmacies and health
maintenance organizations.
TDK (Japan) 1.71 24,050,476
A leading producer of audio and video tapes and electronic parts.
Nippon Denso (Japan) 1.70 23,975,909
This company and its subsidaries form the NatWest Group, which provides
an extensive range of banking and financial services through offices
and branches in the United Kingdom and overseas.
Siebe (United Kingdom) 1.50 21,216,647
A United Kingdom engineering company with significant
U.S. presence via Foxboro in control devices and process
systems.
Credit Commercial de France (France) 1.50 21,181,498
This is the parent company of a banking group primarily engaged
in retail banking, investment banking, asset management
and international private banking.
Mitsui Fudosan (Japan) 1.45 20,448,353
Engaged in many areas of real estate management. This company is
also engaged in mortgage financing and consulting services and in the operation
of an indoor water park and indoor ski dome.
Mitsubishi Heavy Inds (Japan) 1.43 20,179,149
Japan's largest shipbuilder and comprehensive machinery maker. Its
lines range from ships and nuclear power plants to aerospace and
military equipment.
Itochu (Japan) 1.32 18,666,888
A fully diversified international trading company. Itochu is active
in a wide variety of businesses within Japan and also handles a major
share of Japan's import and export trade and conducts a large volume
of offshore trade.
Matsushita Electric Inds (Japan) 1.30 18,393,002
One of the world's leading producers of electronic and electric porducts.
Most of Matsushita group's porducts are marketed under several trade names,
oncluding "Panasonic," "National," "Technics," "Quasar," "Victor" and "JVC."
Sandoz (Switzerland) 1.28 18,076,359
Through its subsidiaries, this holding company's operations are structrued
around five divisions: pharmaceuticals (50%), nutrition (26%), seeds (6%),
agro (10%) and MBT, formerly the construction and environment division (8%).
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>
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<TABLE>
<CAPTION>
Statement of assets and liabilities
IDS International Fund, Inc.
April 30, 1996
______________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,279,454,948) $1,465,575,956
Dividends and accrued interest receivable 6,088,435
Receivable for investment securities sold 9,262,738
Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 6)1,276,836
U.S. government securities held as collateral (Note 5) 42,135,255
_____________________________________________________________________________________________________________
Total assets 1,524,339,220
_____________________________________________________________________________________________________________
Liabilities
____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 618,506
Payable for investment securities purchased 21,393,133
Payable upon return of securities loaned (Note 5) 90,425,355
Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 6)32,573
Accrued investment management services fee 114,063
Accrued distribution fee 31,950
Accrued service fee 25,346
Accrued transfer agency fee 33,680
Accrued administrative services fee 7,494
Other accrued expenses 502,661
_____________________________________________________________________________________________________________
Total liabilities 113,184,761
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,411,154,459
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value$ 1,286,406
Additional paid-in capital 1,188,451,599
Undistributed net investment income 797,072
Accumulated net realized gain (Note 1) 33,388,458
Unrealized appreciation of investments and on translation of assets and
liabilities in foreign currencies (Note 6) 187,230,924
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock$1,411,154,459
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $ 940,694,476
Class B $ 393,030,091
Class Y $ 77,429,892
Net asset value per share of outstanding capital stock: Class A shares 85,680,470 $ 10.98
Class B shares 35,912,401 $ 10.94
Class Y shares 7,047,701 $ 10.99
See accompanying notes to financial statements. <PAGE>
PAGE
Financial statements
Statement of operations
IDS International Fund, Inc.
Six months ended April 30, 1996
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income: (Unaudited)
Dividends (net of foreign taxes withheld of $1,312,494) $ 8,971,464
Interest 2,030,198
_____________________________________________________________________________________________________________
Total income 11,001,662
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 4,779,697
Distribution fee -- Class B 1,403,069
Transfer agency fee 1,468,715
Incremental transfer agency fee -- Class B 33,542
Service fee
Class A 719,647
Class B 317,875
Administrative services fee 316,231
Compensation of board members 12,267
Compensation of officers 6,049
Custodian fees 561,640
Postage 143,486
Registration fees 107,542
Reports to shareholders 141,136
Audit fees 17,750
Administrative 5,140
Other 7,192
_____________________________________________________________________________________________________________
Total expenses 10,040,978
Earnings credits on cash balances (Note 2) (4,958)
_____________________________________________________________________________________________________________
Total net expenses 10,036,020
_____________________________________________________________________________________________________________
Investment income -- net 965,642
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including gain of $6,501,107 from foreign currency transactions) (Note 3)33,522,790
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies126,872,130
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 160,394,920
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $161,360,562
_____________________________________________________________________________________________________________
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, 1996 Oct. 31, 1995
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income -- net $ 965,642$ 9,690,996
Net realized gain on investments and foreign currency 33,522,790 20,295,838
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies126,872,130(6,709,363)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 161,360,562 23,277,471
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (11,643,064) --
Class B (3,414,859) --
Class Y (982,973) --
Net realized gain
Class A (11,035,192) (48,445,502)
Class B (5,185,783) --
Class Y (856,071) --
Excess distribution of realized gain (Note 1)
Class A -- (1,409,821)
____________________________________________________________________________________________________________
Total distributions (33,117,942) (49,855,323)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 389,392,344 473,751,064
Class B shares 65,658,583 57,808,041
Class Y shares 26,115,397 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 22,451,506 49,509,013
Class B shares 8,562,651 --
Class Y shares 1,839,026 --
Payments for redemptions
Class A shares (323,672,606)(487,220,120)
Class B shares (Note 2) (72,229,917) (42,486,726)
Class Y shares (15,390,663) (22,228,850)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 102,726,321 410,819,560
_____________________________________________________________________________________________________________
Total increase in net assets 230,968,941 384,241,708
Net assets at beginning of period 1,180,185,518 795,943,810
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$797,072 and $15,872,326) $1,411,154,459$1,180,185,518
______________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE
Notes to financial statements
IDS International Fund, Inc.
(Unaudited as to April 30, 1996)
___________________________________________________________________________
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
invests primarily in common stocks and securities convertible into common
stocks of foreign issuers. 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 may be subject to a contingent deferred sales charge and such shares
automatically convert to Class A after eight years. Class Y shares 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:
Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
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. 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 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.
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
Effective March 20, 1995, the Fund entered into agreements with American
Express Financial Corporation (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 fee is adjusted upward or downward by a performance incentive
adjustment based on the Fund's average daily net assets over a rolling 12-
month period as measured against the change in the Lipper International
Fund Index. The maximum adjustment is 0.12% of the Fund's average daily net
assets after deducting 1% from the performance difference. If the
performance difference is less than 1%, the adjustment will be zero. The
adjustment increased the fee by $23,356 for the six months ended April 30,
1996. From its fees, AEFC pays IDS International, Inc. a subadvisory fee
equal to 0.35% of the Fund's average net assets.
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 $1,850,740 for Class A and $186,086 for Class
B for the six months ended April 30, 1996. The Fund also pays custodian
fees to American Express Trust Company, an affiliate of AEFC.
During the six months ended April 30, 1996, the Fund's custodian and
transfer agency fees were reduced by $4,958 as a result of earnings credits
from overnight cash balances.
The Fund had a retirement plan for its independent board members. Upon
retirement, board members receive monthly payments equal to one-half of the
retainer fee for as many months as they served as board members 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 board members serve on the
board. The retirement plan expense amounted to $2,667 for the six months
ended April 30, 1996. The plan was terminated April 30, 1996. The total
liability for the plan is $44,162, which will be paid out at some future
date.
___________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $395,345,921 and $298,470,262,
respectively, for the six months ended April 30, 1996. 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 as
follows:
Six months ended April 30, 1996
Class A Class B Class Y
________________________________________________________________________
Sold 37,680,3226,365,838 2,522,694
Issued for reinvested2,206,971842,201 180,757
distributions
Redeemed (31,232,568) (6,992,298) (1,491,377)
________________________________________________________________________
Net increase 8,654,725 215,741 1,212,074
Year ended Oct. 31, 1995
Class A Class B* Class Y*
_______________________________________________________________________
Sold 49,260,700 5,938,924 8,123,898
Fund merger 182,43134,128,368 --
Issued for reinvested5,230,747 -- --
distributions
Redeemed (51,075,225)(4,370,632) (2,288,271)
_______________________________________________________________________
Net increase 3,598,65335,696,660 5,835,627
*Inception date was March 20, 1995.
________________________________________________________________________
5. Lending of portfolio securities
At April 30, 1996, securities valued at $88,995,516 were on loan to
brokers. For collateral, the Fund received $48,290,100 in cash and U.S.
government securities valued at $42,135,255. Income from securities lending
amounted to $162,558 for the six months ended April 30, 1996. 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, 1996, the Fund had entered into eight foreign currency exchange
contracts that obligate the Fund to deliver currencies at specified future
dates. The unrealized appreciation and/or depreciation on these contracts are
included in the accompanying financial statements. The terms of the open
contracts are as follows:
<TABLE>
<CAPTION>
Exchange date Currency to be Currency to beUnrealizedUnrealized
delivered receivedappreciationdepreciation
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
May 1, 1996 2,139,390 225,951,668 $ 20,657 $
U.S. Dollar Japanese Yen
May 2, 1996 3,005,478 2,370,029 9,076 --
Australian DollarU.S. Dollar
May 2, 1996 7,330,170 765,984,443 -- 7,533
U.S. Dollar Japanese Yen
May 2, 1996 2,614,873 1,731,188 -- 10,647
U.S. Dollar British Pound
May 7, 1996 3,022,587 2,007,217 -- 3,131
U.S. Dollar British Pound
May 31, 1996 3,147,396 16,214,755 -- 11,262
U.S. Dollar British Pound
July 31, 1996 193,908,088 38,060,000 405,897 --
French Franc U.S. Dollar
July 31, 1996 29,988,968 25,205,050 841,206 --
Swiss Franc U.S. Dollar
__________ ________
$1,276,836 $32,573
</TABLE>
<PAGE>
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:
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.
<PAGE>
8. Financial highlights
The tables below show certain important financial
information for evaluating the Fund's results.
Fiscal period ended Oct. 31,
Per share income and capital changes*
Class A
1996** 1995 1994 1993 1992 1991
Net asset value, $9.97$10.84$10.00$7.94 $8.60$8.99
beginning of period
Income from investment operations:
Net investment income.07 .10 .05 .04 .05 .07
Net gains (losses) 1.23 (.31)1.04 2.22 (.58) .42
(both realized
and unrealized)
Total from investment1.30 (.21)1.09 2.26 (.53) .49
operations
Less distributions:
Dividends from net (.15) -- (.09) -- (.05) (.16)
investment income
Distributions from (.14)(.64)(.16)(.19)(.08)(.72)
realized gains
Excess distribution -- (.02) -- (.01) -- --
of realized gains
Total distributions (.29) (.66)(.25) (.20)(.13) (.88)
Net asset value, $10.98 $9.97$10.84$10.00$7.94$8.60
end of period
Ratios/supplemental data
Class A
1996** 1995 1994 1993 1992 1991
Net assets, end of period$941$768$796$440 $219 $232
(in millions)
Ratio of expenses to1.36%+1.39%1.33%1.47% 1.45%1.35%
average daily net assets
Ratio of net income.38%+1.03% .68% .83% .65% .83%
to average daily net assets
Portfolio turnover rate25%52% 58% 63% 94% 66%
(excluding short-term
securities)
Total return++ 13.3% (1.7%)11.0%29.2% (6.4%)6.3%
*For a share outstanding throughout the period.
Rounded to the nearest cent.
**Six months ended April 30, 1996 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
<PAGE>
Financial highlights
Fiscal period ended Oct. 31,
Per share income and capital changes*
Class B Class Y
1996***1995**1996***1995**
Net asset value, $9.92$8.92 $9.98$8.92
beginning of period
Income from investment operations:
Net investment income.03 .04 .08 .10
Net gains (both realized1.23.96 1.24 .96
and unrealized)
Total from investment1.261.00 1.32 1.06
operations
Less distributions:
Dividends from net (.10) -- (.17) --
investment income
Distributions from (.14)--(.14) --
realized gains
Total distributions (.24) -- (.31) --
Net asset value, $10.94$9.92 $10.99 $9.98
end of period
Ratios/supplemental data
Class B Class Y
1996***1995**1996***1995**
Net assets, end of period$393$354 $77 $58
(in millions)
Ratio of expenses to2.13%+2.21%+ 1.19%+ 1.26%+
average daily net assets
Ratio of net income(.43%)+.69%+ .57%+ 1.67%+
to average daily net assets
Portfolio turnover rate25%52% 25% 52%
(excluding short-term
securities)
Total return++ 12.9%11.2% 13.4%11.9%
*For a share outstanding throughout the period.
Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B
and Class Y.
***Six months ended April 30, 1996 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS International Fund, Inc. (Percentages represent value of
April 30, 1996 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (95.1%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Argentina (0.3%)
Multi-industry conglomerates
Perez Naviera B Shares 770,660 $4,808,918
_____________________________________________________________________________________________________________________________
Australia (4.3%)
Banks and savings & loans (0.9%)
Westpac Banking 2,719,000 (c) 13,199,929
_____________________________________________________________________________________________________________________________
Energy (0.5%)
Broken Hill Proprietary 450,054 (c) 6,925,849
_____________________________________________________________________________________________________________________________
Metals (2.9%)
CRA 694,450 11,259,643
Pasminco 11,150,400 16,292,106
WMC 1,850,600 13,490,700
_____________
Total 41,042,449
_____________________________________________________________________________________________________________________________
Austria (0.5%)
Machinery
Boehler-Uddeholm 82,400 (b,d) 6,726,687
_____________________________________________________________________________________________________________________________
Brazil (0.5%)
Communications equipment
Telebras ADR 133,600 (c) 7,231,100
_____________________________________________________________________________________________________________________________
Canada (0.9%)
Aerospace & defense (0.5%)
Bombardier Cl B 494,000 6,949,567
_____________________________________________________________________________________________________________________________
Communications equipment (0.4%)
BCE Mobile 192,250 (b) 6,341,249
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
Denmark (0.3%)
Airlines
Copenhagen Airport 44,720 4,168,107
______________________________________________________________________________________________________________________________
France (8.1%)
Automotive & related (0.4%)
Peugeot 38,250 (b) 5,341,373
_____________________________________________________________________________________________________________________________
Banks and savings & loans (2.3%)
Banque Nationale de Paris 277,000 11,561,534
Credit Commercial de France 423,000 21,181,498
_____________
Total 32,743,032
_____________________________________________________________________________________________________________________________
Building materials & construction (0.9%)
Lafarge-Coppee (Bearer) 202,830 12,985,074
_____________________________________________________________________________________________________________________________
Energy (1.1%)
Societe Elf Aquitaine 131,910 9,804,656
Total Petroleum Cl B 89,450 (c) 6,067,368
_____________
Total 15,872,024
_____________________________________________________________________________________________________________________________
Food (0.4%)
Danone 38,000 5,740,092
_____________________________________________________________________________________________________________________________
Insurance (0.5%)
Union des Assurances Federales 59,000 7,166,315
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.7%)
Accor 73,722 10,237,780
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.2%)
Lyonnaise des Eaux Dumez 172,240 17,289,627
_____________________________________________________________________________________________________________________________
Retail (0.1%)
Casino Guichard Perrachon 46,735 1,758,110
______________________________________________________________________________________________________________________________
Utilities - electric (0.5%)
RWE 161,650 6,294,897
______________________________________________________________________________________________________________________________
Germany (3.6%)
Automotive & related (0.9%)
Diamler-Benz 23,700 12,984,286
______________________________________________________________________________________________________________________________
Banks and savings & loans (1.0%)
Commerzbank 68,150 (c) 14,761,009
_____________________________________________________________________________________________________________________________
Chemicals (0.6%)
Hoechst 24,250 (c) 8,169,422
_____________________________________________________________________________________________________________________________
Retail (0.4%)
Karstadt 13,460 (c) 5,028,702
_____________________________________________________________________________________________________________________________
Miscellaneous (0.7%)
Degussa 26,100 9,396,341
______________________________________________________________________________________________________________________________
Hong Kong (4.0%)
Banking and savings & loans (0.9%)
HSBC 812,000 12,124,103
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.6%)
Citic Pacific 1,030,000 4,047,831
Hutchison Whampoa 1,226,000 7,607,524
Swire Pacific Cl A 1,351,000 11,526,856
____________
Total 23,182,211
_____________________________________________________________________________________________________________________________
Real estate (1.5%)
Cheung Kong Holdings 1,056,000 7,542,369
Henderson Land Development 838,000 6,012,409
Sun Hung Kai Properties 797,000 7,598,571
_____________
Total 21,153,349
_____________________________________________________________________________________________________________________________
India (0.2%)
Multi-industry conglomerates
India Fund 237,800 2,645,525
_____________________________________________________________________________________________________________________________
Italy (3.8%)
Automotive & related (0.3%)
Fiat 1,058,000 3,603,357
____________________________________________________________________________________________________________________________
Communications equipment (1.9%)
Stet Risp 3,332,000 8,726,918
Telecom Italia 4,394,000 8,951,000
Telecom Italia Mobil 4,394,000 9,695,743
_____________
Total 27,373,661
_____________________________________________________________________________________________________________________________
Energy (1.1%)
Ente Nazionale Idrocarburi Spa 3,544,243 15,301,333
_____________________________________________________________________________________________________________________________
Insurance (0.5%)
INA 4,999,200 7,673,857
_____________________________________________________________________________________________________________________________
Japan (33.3%)
Banks and savings & loans (2.3%)
Sakura Bank 740,000 (c) 8,701,305
Sanwa Bank 460,000 9,322,690
Sumitomo Trust & Banking 990,000 14,480,186
____________
Total 32,504,181
_____________________________________________________________________________________________________________________________
Building materials & construction (2.8%)
Daiwa Kosho Lease 694,000 7,563,309
Nihon Cement 1,800,000 12,836,862
Sho-Bond 160,000 (c) 5,812,342
Taisei 1,678,000 12,993,442
____________
Total 39,205,955
_____________________________________________________________________________________________________________________________
Chemicals (0.8%)
Sekisui Chemical 895,000 11,293,915
_____________________________________________________________________________________________________________________________
Electronics (7.4%)
Matsushita Electric Inds 1,040,000 18,393,002
NEC 567,000 7,209,122
Omron 480,000 10,829,310
Rohm 250,000 15,917,021
Sanyo Electric 2,500,000 15,964,820
TDK 420,000 24,050,476
Yokogawa Electric 980,000 11,429,664
____________
Total 103,793,415
_____________________________________________________________________________________________________________________________
Health care (1.6%)
Banyu Pharmaceuticals 470,000 (c) 6,784,570
Sankyo Pharmaceuticals 630,000 15,297,548
_____________
Total 22,082,118
_____________________________________________________________________________________________________________________________
Industrial equipment & services (2.6%)
Mitsubishi Heavy Inds 2,260,000 20,179,149
Secom 240,000 16,978,156
_____________
Total 37,157,305
_____________________________________________________________________________________________________________________________
Insurance (1.1%)
Tokio Marine & Fire 1,160,000 15,968,644
_____________________________________________________________________________________________________________________________
Machinery (0.4%)
Kawasaki Heavy Inds 1,000,000 5,171,836
_____________________________________________________________________________________________________________________________
Metals (1.9%)
Hitachi Metals 1,100,000 14,406,577
Nippon Steel 3,300,000 11,924,857
_____________
Total 26,331,434
_____________________________________________________________________________________________________________________________
Real estate (1.9%)
Mitsubishi Estates 500,000 7,026,433
Mitsui Fudosan 1,550,000 20,448,353
_____________
Total 27,474,786
_____________________________________________________________________________________________________________________________
Retail (1.4%)
Autobocs Seven 30,000 (b) 2,853,592
Ito-Yokado 170,000 10,027,245
Marui 318,000 7,022,418
____________
Total 19,903,255
_____________________________________________________________________________________________________________________________
Telecommunications (1.0%)
DDI 1,600 13,750,777
_____________________________________________________________________________________________________________________________
Textiles & apparel (0.6%)
Onward Kashiyama 500,000 8,460,399
_____________________________________________________________________________________________________________________________
Transportation (1.7%)
Nippon Express 1,414,000 14,734,095
Nippon Yusen 1,500,000 9,105,683
_____________
Total 23,839,778
_____________________________________________________________________________________________________________________________
Wire & cable (3.7%)
Nippon Denso 1,100,000 (b,c) 23,975,909
NTN 1,900,000 13,949,620
Sumitomo Electric Inds 1,000,000 14,339,658
_____________
Total 52,265,187
_____________________________________________________________________________________________________________________________
Miscellaneous (2.1%)
Itochu 2,450,000 18,666,888
Mitsubishi Material 1,756,000 10,575,784
_____________
Total 29,242,672
_____________________________________________________________________________________________________________________________
Korea (0.5%)
Utilities-electric
Korea Electric Power ADR 240,000 6,660,000
_____________________________________________________________________________________________________________________________
Malaysia (1.7%)
Banks and savings & loans (0.4%)
Malayan Banking 598,500 5,832,584
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.6%)
Resorts World 1,355,000 8,205,533
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.4%)
Sime Darby 2,242,600 6,205,709
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.3%)
Telekom Malaysia 385,000 3,628,434
_____________________________________________________________________________________________________________________________
Mexico (0.8%)
Banking (0.3%)
Grupo Financiero Banamex Cl B 1,650,000 3,801,881
Grupo Financiero Banamex Cl L 49,500 101,665
_____________
Total 3,903,546
_____________________________________________________________________________________________________________________________
Building materials & construction (0.5%)
Empresas ICA Sociedad Controladora ADR 501,500 (c) 6,958,313
______________________________________________________________________________________________________________________________
Netherlands (3.5%)
Chemicals (1.0%)
Akzo Nobel 124,320 14,438,097
_____________________________________________________________________________________________________________________________
Financial services (0.9%)
Ing Groep 160,354 12,380,995
_____________________________________________________________________________________________________________________________
Media (0.7%)
Elsevier 628,930 (c) 9,469,737
_____________________________________________________________________________________________________________________________
Textiles & apparel (0.9%)
Gucci 225,229 (b) 12,197,988
______________________________________________________________________________________________________________________________
New Zealand (0.5%)
Multi-industry conglomerates (--%)
Fletcher Challenge Forest 422,849 545,777
_____________________________________________________________________________________________________________________________
Paper & packaging (0.5%)
Carter Holt Harvey 3,255,700 7,711,441
_____________________________________________________________________________________________________________________________
Norway (0.4%)
Banks and savings & loans (0.2%)
Christiania Bank 1,328,200 2,891,324
_____________________________________________________________________________________________________________________________
Industrial transportation (0.2%)
First Olsen Tankers 498,000 (b) 3,411,452
_____________________________________________________________________________________________________________________________
Philippines (0.7%)
Financial services (0.3%)
Philippine Commercial Intl Bank 364,380 4,873,252
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.4%)
Philippines Long Distance Telephone ADR 105,000 (c) 5,276,250
_____________________________________________________________________________________________________________________________
Singapore (4.1%)
Airlines (0.8%)
Singapore Airlines 1,164,000 11,760,085
_____________________________________________________________________________________________________________________________
Banks and savings & loans (1.0%)
Development Bank Singapore 460,000 (c) 5,825,685
Overseas Union Bank 1,007,625 7,814,381
_____________
Total 13,640,066
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.5%)
Fraser & Neave 579,840 6,435,790
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.4%)
Sembawang Shipyard 1,077,000 5,593,810
_____________________________________________________________________________________________________________________________
Industrial transportation (0.7%)
Keppel 1,125,000 10,165,421
_____________________________________________________________________________________________________________________________
Real estate (0.7%)
DBS Land 2,304,000 9,343,863
_____________________________________________________________________________________________________________________________
Spain (2.8%)
Banks and savings & loans (0.9%)
Argentaria Bancaria De Espana 315,000 12,748,526
_____________________________________________________________________________________________________________________________
Energy (0.7%)
Repsol 280,000 10,264,833
_____________________________________________________________________________________________________________________________
Telecommunications (1.2%)
Telefonica 935,262 16,647,296
_____________________________________________________________________________________________________________________________
Sweden (2.6%)
Industrial equipment & services (1.7%)
Asea B Free Shares 102,400 10,387,202
Ericsson (LM) B Free Shares 682,000 13,826,022
_____________
Total 24,213,224
_____________________________________________________________________________________________________________________________
Machinery (0.9%)
Scania Cl A 225,929 (b) 6,262,389
Scania Cl B 229,980 (b) 6,357,722
_____________
Total 12,620,111
_____________________________________________________________________________________________________________________________
Switzerland (1.9%)
Banks and savings & loans (0.6%)
Swiss Bank 46,541 (b) 8,697,150
_____________________________________________________________________________________________________________________________
Health care (1.3%)
Sandoz 16,550 18,076,359
_____________________________________________________________________________________________________________________________
Taiwan (0.5%)
Multi-industry conglomerates
Taiwan Fund 280,000 (c) 6,475,000
_____________________________________________________________________________________________________________________________
Thailand (2.2%)
Banks and savings & loans (1.1%)
First Bangkok City Bank 3,405,000 6,744,576
Siam Commercial Bank 600,000 8,842,230
_____________
Total 15,586,806
_____________________________________________________________________________________________________________________________
Building materials & construction (0.7%)
TPI Polene 1,677,900 9,305,972
_____________________________________________________________________________________________________________________________
Financial services (0.4%)
Dhana Siam Finance 789,900 5,570,058
_____________________________________________________________________________________________________________________________
United Kingdom (13.1%)
Banks and Savings & Loans (0.7%)
Natl Westminster 1,137,703 10,482,610
______________________________________________________________________________________________________________________________
Building materials & construction (0.8%)
Redland 1,713,600 11,084,404
_____________________________________________________________________________________________________________________________
Electronics (0.7%)
Farnell Electronics 923,900 10,229,096
_____________________________________________________________________________________________________________________________
Health care (1.7%)
Glaxo Wellcome 1,990,000 24,128,069
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (1.2%)
Rank Organisation 1,292,780 10,365,405
Thorn Emi 247,900 6,872,841
_____________
Total 17,238,246
_____________________________________________________________________________________________________________________________
Machinery (1.5%)
Siebe 1,640,000 21,216,647
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.2%)
BTR 3,047,900 14,671,859
Framlington Maghreb Fund Units 47,400 (b) 2,417,400
_____________
Total 17,089,259
_____________________________________________________________________________________________________________________________
Paper & packaging (0.4%)
Smurfit Group 1,907,276 5,049,643
_____________________________________________________________________________________________________________________________
Retail (1.8%)
Kingfisher 2,000,000 17,901,170
Next 947,000 7,550,232
_____________
Total 25,451,402
_____________________________________________________________________________________________________________________________
Transportation (1.8%)
British Airways 2,006,200 15,663,039
NFC 3,983,500 10,246,968
_____________
Total 25,910,007
_____________________________________________________________________________________________________________________________
Utilities-telephone (1.3%)
British Telecommunications 1,156,600 6,341,838
Vodafone Group 2,823,700 11,277,621
_____________
Total 17,619,459
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $1,156,618,333) $1,341,898,636
</TABLE>
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Bond (0.5%)
______________________________________________________________________________________________________________________________
Issuer and coupon rate Principal Value(a)
amount
______________________________________________________________________________________________________________________________
<S> <C> <C>
Malaysia
Renong
(U.S. Dollar)
2.50% Cv 2005 $5,500,000 (d) $6,352,500
______________________________________________________________________________________________________________________________
Total bond
(Cost: $5,503,731) $6,352,500
______________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (8.3%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.2%)
Federal Home Loan Mtge Corp
Disc Nt
05-20-96 5.19% $2,833,000 $ 2,825,270
_____________________________________________________________________________________________________________________________
Commercial paper (7.5%)
AIG Funding
06-05-96 5.30 4,800,000 4,775,407
Aon
05-13-96 5.29 5,200,000 5,189,570
Avco
05-14-96 5.28 4,500,000 4,490,534
Beneficial
05-30-96 5.32 4,400,000 4,381,214
Ciesco LP
06-24-96 5.32 5,600,000 (e) 5,581,109
Coca-Cola
05-03-96 5.33 1,900,000 1,899,438
Colgate Palmolive
05-20-96 5.30 2,700,000 (e) 2,692,476
Gateway Fuel
05-08-96 5.36 1,500,000 1,498,445
Kredietbank North America
Finance
06-06-96 5.30 1,100,000 1,093,627
Metlife Funding
05-24-96 5.30 3,600,000 3,587,856
Morgan Stanley
05-22-96 5.32 2,000,000 1,993,817
Natl Australia Funding
05-16-96 5.34 9,100,000 9,079,828
PACCAR
05-16-96 5.34 1,500,000 1,496,681
Pacific Mutual
05-03-96 5.33 6,200,000 6,198,168
Penney (JC)
05-14-96 5.20 5,600,000 5,586,942
05-15-96 5.20 5,000,000 4,987,456
Reed Elsevier
05-21-96 5.30 5,800,000 (e) 5,782,987
05-28-96 5.31 5,400,000 (e) 5,378,576
St. Paul Companies
05-17-96 5.32 3,100,000 (e) 3,092,698
05-23-96 5.30 4,300,000 (e) 4,286,125
Siemens
05-23-96 5.30 2,200,000 2,192,901
SmithKline Beecham
05-15-96 5.32 8,300,000 8,282,893
Toyota Motor
06-07-96 5.32 1,900,000 1,889,670
Transamerica Financial
05-23-96 5.32 4,800,000 4,784,453
06-24-96 5.32 4,300,000 4,265,944
USL Capital
05-09-96 5.35 1,700,000 1,697,987
_____________
Total 106,186,802
_______________________________________________________________________________________________________________________________
Letters of credit (0.6%)
Bank of New York-
River Fuel
05-31-96 5.32 3,600,000 (e) 3,584,100
Societe Generale-
JMG Funding
05-30-96 5.32 4,749,000 4,728,648
_____________
Total 8,312,748
______________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $117,332,884) $ 117,324,820
______________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,279,454,948)(f) $1,465,575,956
______________________________________________________________________________________________________________________________
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.
(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.
(f) At April 30, 1996, the cost of securities for federal income tax purposes was approximately $1,279,455,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $202,379,000
Unrealized depreciation (16,258,000)
_____________________________________________________________________________________
Net unrealized appreciation $186,121,000
________________________________________________________________________________________
</TABLE>
PAGE
Board members and officers
Board members and officers of the Fund
_____________________________________________________________________
President and interested board member
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent board members
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.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Readers's Digest Association, Inc.
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board, The Valspar Corporation.
_____________________________________________________________________
Interested board members who are officers and/or employees of AEFC
William H. Dudley
Executive vice president, AEFC.
David R. Hubers
President and chief executive officer, AEFC.
John R. Thomas
Senior vice president, AEFC.
_____________________________________________________________________
Officers who also are officers and/or employees of AEFC
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) two coins<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) shield with eagle head
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 star
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.
<PAGE>
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 U.S. equity securities, U.S. and foreign debt
securities, foreign equity securities and money market
instruments. The fund provides diversification among these
major investments categories and has a target mix that
represents the way the fund's investments will be allocated
over the long term.
(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.
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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.
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IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
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IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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 Selective Fund
IDS Tower 10
Minneapolis, MN 55440-0010
