1997 SEMIANNUAL REPORT
IDS
International
Fund
(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.
American Express Financial Advisors
Distributed by American Express Financial Advisors Inc., Member SIPC.
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 27
IDS mutual funds 28
<PAGE>
To our shareholders
From the president
If you're an experienced investor, you know that the past two years have
been unusually strong ones in many financial markets. 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
(picture of )William R. Pearce
President of the Fund
<PAGE>
From the portfolio manager
IDS International Fund experienced mixed results during the first half of
the fiscal year, as fluctuations in foreign markets and currency values
prevented the establishment of sustained positive momentum. For the six
months -- November 1996 through April 1997 -- the Fund's Class A shares
produced a total return of 2.3%. (The Fund paid a capital gain to
shareholders last December, which reduced its net asset value by the same
amount at that time.)
After an extremely strong start -- the Fund was up about 5% in November --
the final five months of the period were something of a struggle. The
dominant factor was an ongoing decline in the value of the two major
foreign currencies, the German mark and the Japanese yen, versus the U.S.
dollar. Currency declines have a negative effect on returns for U.S.-based
investors because the values of foreign investments must be converted into
dollars. Ultimately, a decline in the foreign currency reduces the value
of the investment by a commensurate amount.
Reduction in Japan
In the case of Japan, a number of stocks in the portfolio generated
healthy gains. But when the currency decline was factored in, the returns,
in some cases, actually came out to be negative. To counter this trend, We
substantially reduced the exposure to Japan (from nearly 30% to about 15%
of assets) during the period. In addition, we focused investments on
companies with strong export businesses, which generally have fared far
better than those whose market is essentially confined to Japan.
Investments in Europe, another major exposure for the Fund, yielded
largely positive results, though here again declining currencies tempered
performance.
Including the United Kingdom, Germany, Italy and France, between 40% and
55% of assets was invested in Europe.
Latin America strong
Among the smaller or so-called "emerging" markets, investment results
varied. The clear winners for the Fund were Mexico and Brazil, whose
markets were up sharply and whose currencies also appreciated. On the
other hand, Singapore was negative, while Hong Kong was moderately
positive. All told, investments in these markets comprised about 15%
assets during the period.
Perhaps the brightest part of the outlook for the rest of the fiscal year
is that the bulk of the foreign currency declines is probably behind us.
Also encouraging is that the corporate restructuring trend that has helped
power the ascent of the U.S. stock market in recent years is taking hold
in Europe. We are investing the portfolio to take advantage of these
factors, as well as the robustness in Latin America.
William N. Westhoff
(picture of) William Westhoff
Portfolio manager
<PAGE>
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1997 $ 10.21
Oct. 31, 1996 $ 10.65
Decrease $ 0.44
Distributions
Nov. 1, 1996 - April 30, 1997
From income $ 0.24
From capital gains $ 0.45
Total distributions $ 0.69
Total return* +2.3%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1997 $ 10.18
Oct. 31, 1996 $ 10.58
Decrease $ 0.40
Distributions
Nov. 1, 1996 - April 30, 1997
From income $ 0.16
From capital gains $ 0.45
Total distributions $ 0.61
Total return* +1.9%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1997 $ 10.22
Oct. 31, 1996 $ 10.67
Decrease $ 0.45
Distributions
Nov. 1, 1996 - April 30, 1997
From income $ 0.26
From capital gains $ 0.45
Total distributions $ 0.71
Total return* +2.3%**
*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>
The Fund's ten largest holdings
Percent Value
(of Fund's net assets) (as of April 30, 1997)
Philips Electronics (Netherlands) 2.82% $38,555,822
Glaxo Wellcome (United Kingdom) 2.47 33,803,169
Stet Risp (Italy) 2.28 31,136,668
Ente Nazionale Idrocarburi (Italy) 2.08 28,401,885
HSBC Holdings (Hong Kong) 2.06 28,155,786
Novartis (Switzerland) 2.00 27,394,778
British Telecommunications 1.98 27,155,483
(United Kingdom)
Sumitomo Realty & Development 1.78 24,415,610
(Japan)
NEC (Japan) 1.72 23,516,483
TDK (Japan) 1.69 23,065,107
(icon of) pie chart
The ten holdings listed here make up 20.88% of the Fund's net assets
<PAGE>
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS International Fund, Inc.
April 30, 1997
Assets
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,410,443,795) $1,556,954,982
Cash in bank on demand deposit 70,730,066
Dividends and accrued interest receivable 5,393,286
Receivable for investment securities sold 17,623,428
Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 4) 46,432
U.S. government securities held as collateral (Note 6) 12,797,242
- ----------
Total assets 1,663,545,436
-------------
Liabilities
Payable for investment securities purchased 24,927,820
Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 4) 46,017
Payable upon return of securities loaned (Note 6) 270,238,069
Accrued investment management services fee 5,500
Accrued distribution fee 8,231
Accrued service fee 6,079
Accrued transfer agency fee 8,500
Accrued administrative services fee 1,820
Other accrued expenses 211,989
-------
Total liabilities 295,454,025
-----------
Net assets applicable to outstanding capital stock $1,368,091,411
==============
Represented by
Capital stock-- authorized 10,000,000,000 shares of $.01 par value $ 1,341,035
Additional paid-in capital 1,243,542,450
Excess of distributions over net investment income (3,927,199)
Accumulated net realized loss (Note 1) (18,691,762)
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies (Note 4) 145,826,887
- -----------
Total-- representing net assets applicable to outstanding capital stock $1,368,091,411
==============
Net assets applicable to outstanding shares: Class A $ 881,713,606
Class B $ 405,089,121
Class Y $ 81,288,684
Net asset value per share of outstanding capital stock: Class A shares 86,344,167 $ 10.21
Class B shares 39,807,299 $ 10.18
Class Y shares 7,951,997 $ 10.22
See accompanying notes to financial statements.
<PAGE>
Statement of operations
IDS International Fund, Inc.
Six months ended April 30, 1997
Investment income
(Unaudited)
Income:
Dividends (net of foreign taxes withheld of $1,933,270) $ 8,313,831
Interest 1,740,800
Total income 10,054,631
Expenses (Note 2):
Investment management services fee 4,718,734
Distribution fee -- Class B 1,546,834
Transfer agency fee 1,467,859
Incremental transfer agency fee-- Class B 33,011
Service fee
Class A 782,297
Class B 357,419
Administrative services fees and expenses 348,676
Compensation of board members 6,743
Compensation of officers 1,815
Custodian fees 528,958
Postage48,049
Registration fees 89,711
Reports to shareholders 55,149
Audit fees 18,250
Other 25,745
Total expenses 10,029,250
Earnings credits on cash balances (Note 2) (49,122)
Total net expenses 9,980,128
Investment income -- net 74,503
Realized and unrealized gain (loss) -- net
Net realized loss on security and foreign currency transactions
(including gain of $2,393,952 from foreign currency transactions) (Note 3) (18,689,226)
Net change in unrealized appreciation or depreciation of investments and on
translation of assets and liabilities in foreign currencies 50,231,444
----------
Net gain on investments and foreign currencies 31,542,218
----------
Net increase in net assets resulting from operations $31,616,721
===========
See accompanying notes to financial statements.
<PAGE>
Financial statements
Statements of changes in net assets
IDS International Fund, Inc.
Operations and distributions April 30, 1997 Oct. 31, 1996
Six months ended Year ended
(Unaudited)
Investment income-- net $ 74,503 $ 9,850,033
Net realized gain (loss) on investments and foreign currencies (18,689,226) 73,164,042
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 50,231,444 35,236,649
---------- ----------
Net increase in net assets resulting from operations 31,616,721 118,250,724
---------- -----------
Distributions to shareholders from:
Net investment income
Class A (13,945,512) (11,644,230)
Class B (3,344,776) (3,416,030)
Class Y (1,371,425) (982,973)
Net realized gain
Class A (44,172,367) (11,034,820)
Class B (20,128,583) (5,185,783)
Class Y (3,903,808) (856,071)
---------- --------
Total distributions (86,866,471) (33,119,907)
----------- -----------
Capital share transactions (Note 5)
Proceeds from sales
Class A shares (Note 2) 372,627,400 714,017,482
Class B shares 49,938,526 122,875,366
Class Y shares 28,172,606 47,457,471
Reinvestment of distributions at net asset value
Class A shares 57,414,405 22,452,752
Class B shares 23,375,513 8,563,817
Class Y shares 5,275,233 1,839,026
Payments for redemptions
Class A shares (427,952,766) (646,148,436)
Class B shares (Note 2) (56,372,683) (104,878,776)
Class Y shares (25,539,191) (35,092,919)
----------- -----------
Increase in net assets from capital share transactions 26,939,043 131,085,783
---------- -----------
Total increase (decrease) in net assets (28,310,707) 216,216,600
Net assets at beginning of period 1,396,402,118 1,180,185,518
------------- -------------
Net assets at end of period
(including undistributed net investment income of
$(3,927,199) and $14,660,011) $1,368,091,411 $1,396,402,118
============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to financial statements
IDS International Fund, Inc.
(Unaudited as to April 30, 1997)
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 financial 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 from net investment income, declared and paid at the
end of the calendar year, 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.
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 daily 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 decreased the fee by $484,517 for
the six months ended April 30, 1997. From its fees, AEFC pays IDS
International, Inc. a subadvisory fee equal to 0.35% of the Fund's average
daily net assets.
Under its Administrative Services Agreement, the Fund pays AEFC a fee 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. Additional administrative service expenses paid by the Fund are
office expenses, consultants' fees and compensation of officers and
employees. Under this agreement, the Fund also pays taxes, audit and
certain legal fees, registration fees for shares, compensation of board
members, corporate filing fees, organizational expenses, and any other
expenses properly payable by the Fund approved by the board.
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. 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.
Sales charges received by American Express Financial Advisors for
distributing Fund shares were $1,078,863 for Class A and $216,485 for
Class B for the six months ended April 30, 1997. The Fund also pays
custodian fees to American Express Trust Company, an affiliate of AEFC.
During the six months ended April 30, 1997, the Fund's custodian and
transfer agency fees were reduced by $49,122 as a result of earnings
credits from overnight cash balances.
3
Securities
transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $559,676,766 and $703,109,284,
respectively, for the six months ended April 30, 1997. Realized gains and
losses are determined on an identified cost basis.
4
Foreign currency
contracts
At April 30, 1997, the Fund had entered into 10 foreign currency exchange
contracts that obligate the Fund to deliver currencies at specified future
dates. The unrealized appreciation and/or depreciation (see Summary of
significant accounting policies) on these contracts is included in the
accompanying financial statements. The terms of the open contracts are as
follows:
<TABLE>
<CAPTION>
Currency to Currency to Unrealized Unrealized
Exchange date be delivered be received appreciation depreciation
<S> <C> <C> <C> <C>
May 2, 1997 58,109 40,291 $ 147 $ --
Singapore Dollar U.S. Dollar
May 2, 1997 6,203,037 3,820,616 -- 11,347
U.S. Dollar British Pound
May 2, 1997 1,708,878 3,313,514 -- 7,590
U.S. Dollar Dutch Guilder
May 2, 1997 604,655 1,042,932 -- 2,239
U.S. Dollar Deutsche Mark
May 5, 1997 212,439 47,043 280 --
Singapore Dollar U.S. Dolllar
May 5, 1997 2,778,895 5,413,288 499 --
U. S. Dollar Dutch Guilder
May 7, 1997 3,393,646 2,078,739 -- 24,841
U.S. Dollar British Pound
May 7, 1997 427,492,739 3,393,646 26,103 --
Japanese Yen U.S. Dollar
May 30, 1997 9,327,747 1,607,761 9,586 --
French Franc U.S. Dollar
May 30, 1997 43,494,108 4,035,194 9,817 --
Japanese Yen U.S. Dollar
------- -------
$46,432 $46,017
</TABLE>
5
Capital share
transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
Six months ended April 30, 1997
Class A Class B Class Y
Sold 35,657,138 4,760,819 2,680,264
Issued for reinvested 5,533,921 2,255,453 508,309
distributions
Redeemed (40,839,548) (5,416,610) (2,436,194)
----------- ---------- ----------
Net increase 351,511 1,599,662 752,379
----------- ---------- ----------
Year ended Oct. 31, 1996
Class A Class B Class Y
Sold 67,948,007 11,708,280 4,501,934
Issued for reinvested 2,207,095 842,315 180,757
distributions
Redeemed (61,188,191) (10,039,618) (3,318,700)
----------- ---------- ----------
Net increase 8,966,911 2,510,977 1,363,991
----------- ---------- ----------
6
Lending of
portfolio securities
At April 30, 1997, securities valued at $261,178,830 were on loan to
brokers. For collateral, the Fund received $257,404,408 in cash and U.S.
government securities valued at $12,797,242. Income from securities
lending amounted to $448,496 for the six months ended April 30, 1997. 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.
7
Financial
highlights
<TABLE>
<CAPTION>
The tables below show certain important financial information for evaluating the
Fund's results.
Fiscal period ended Oct. 31,
Per share income and capital changesa
Class A
1997e 1996 1995 1994 1993 1992 1991 1990 1989 1988
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $10.65 $9.97 $10.84 $10.00 $7.94 $8.60 $8.99 $9.30 $8.66 $7.45
beginning of period
Income from investment operations:
Net investment income .02 .09 .10 .05 .04 .05 .07 .15 .06 .10
Net gains (losses) .23 .88 (.31) 1.04 2.22 (.58) .42 .51 .60 1.20
(both realized
and unrealized)
Total from investment .25 .97 (.21) 1.09 2.26 (.53) .49 .66 .66 1.30
operations
Less distributions:
Dividends from net (.17) (.15) -- (.09) -- (.05) (.16) (.10) (.02) (.05)
investment income
Distributions from (.52) (.14) (.64) (.16) (.19) (.08) (.72) (.87) -- (.04)
realized gains
Excess distributions of -- -- (.02) -- (.01) -- -- -- -- --
realized gains
Total distributions (.69) (.29) (.66) (.25) (.20) (.13) (.88) (.97) (.02) (.09)
Net asset value, $10.21 $10.65 $9.97 $10.84$10.00 $7.94 $8.60 $8.99 $9.30 $8.66
end of period
Ratios/supplemental data
Class A
1997e 1996 1995 1994 1993 1992 1991 1990 1989 1988
Net assets, end of $882 $916 $768 $796 $440 $219 $232 $215 $198 $231
period (in millions)
Ratio of expenses to 1.22%f 1.31% 1.39% 1.33% 1.47% 1.45% 1.35% 1.35% 1.41% 1.33%
average daily net assetsc
Ratio of net income .22%f .95% 1.03% .68% .83% .65% .83% 1.67% .50% .96%
to average daily net assets
Portfolio turnover rate 41% 62% 52% 58% 63% 94% 66% 98% 95% 87%
(excluding short-term securities)
Total returnb 2.3% 9.9% (1.7%) 11.0% 29.2% (6.4%) 6.3% 7.1% 7.6% 17.6%
Average brokerage $.0164 $.0188 $ -- $ -- $ -- $ -- $ -- $-- $ -- $ --
commission rated
aFor a share outstanding throughout the period. Rounded to the nearest
cent.
bTotal return does not reflect payment of a sales charge.
cEffective fiscal year 1996, expense ratio is based on total expenses of
the Fund before reduction of earnings credits on cash balances.
d Effective fiscal year 1997, the Fund is required to disclose an average
brokerage commission rate per share for security trades on which
commissions are charged. The comparability of this information may be
affected by the fact that commission rates per share vary significantly
among foreign countries.
e Six months ended April 30, 1997 (Unaudited).
f Adjusted to an annual basis.
</TABLE>
<PAGE>
IDS International Fund, Inc.
Fiscal period ended Oct. 31,
Per share income and capital changesa
Class B Class Y
1997g 1996 1995b 1997g 1996 1995b
Net asset value, $10.58 $9.92 $8.92 $10.67 $9.98 $8.92
beginning of period
Income from investment operations:
Net investment income (.02) .03 .04 .02 .10 .10
(loss)
Net gains (losses) .23 .87 .96 .24 .90 .96
(both realized and unrealized)
Total from investment .21 .90 1.00 .26 1.00 1.06
operations
Less distributions:
Dividends from net (.09) (.10) -- (.19) (.17) --
investment income
Distributions from (.52) (.14) -- (.52) (.14) --
realized gains
Total distributions (.61) (.24) -- (.71) (.31) --
Net asset value, $10.18 $10.58 $9.92 $10.22 $10.67 $9.98
end of period
Ratios/supplemental data
Class B Class Y
1997g 1996 1995b 1997g 1996 1995b
Net assets, end of $405 $404 $354 $81 $77 $58
period (in millions)
Ratio of expenses to 1.98%c 2.07% 2.21%c 1.04%c 1.13% 1.26%c
average daily net assetsd
Ratio of net income (loss) (.53%)c .15% .69%c .42%c 1.13% 1.67%c
to average daily net assets
Portfolio turnover rate 41% 62% 52% 41% 62% 52%
(excluding short-term
securities)
Total return e 1.9% .9% 11.2% 2.3% 10.1% 11.9%
Average brokerage $.0164 $.0188 $-- $.0164 $.0188 $--
commission ratef
aFor a share outstanding throughout the period. Rounded to the nearest
cent.
bInception date was March 20, 1995.
cAdjusted to an annual basis.
dEffective fiscal year 1996, expense ratio is based on total expenses of
the Fund before reduction of earnings credits on cash balances.
eTotal return does not reflect payment of a sales charge.
f Effective fiscal year 1997, the Fund is required to disclose an average
brokerage commission rate per share for security trades on which
commissions are charged. The comparability of this information may be
affected by the fact that commission rates per share vary significantly
among foreign countries.
gSix months ended April 30, 1997 (Unaudited).
Investments in securities
IDS International Fund, Inc.
April 30, 1997 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Common stocks (89.8%)
Issuer Shares Value(a)
Australia (4.2%)
Banks and savings & loans (1.1%)
Westpac Banking 2,719,000(c) $ 14,655,793
Metals (3.1%)
CRA 594,450(c) 8,865,951
MIM Holdings 8,189,908 10,668,846
Pasminco 7,534,400 14,340,374
WMC 1,517,169(c) 8,994,347
Total 42,869,518
Austria (0.9%)
Energy (0.5%)
OMV 56,259 6,140,955
Machinery (0.4%)
Boehler-Uddeholm 82,400(b) 5,944,405
Brazil (1.6%)
Communications equipment & services (0.5%)
Telecomunicacoes Brasileiras -
Telebras ADR 65,000 7,458,750
Energy (0.5%)
Petroleo Brasileiro ADR 340,000(c) 7,136,597
Utilities -- electric (0.6%)
CEMIG ADR 175,000(b,c) 7,901,250
Canada (0.4%)
Communications equipment & services
BCE Mobile 192,250(b) 5,918,561
France (8.3%)
Banks and savings & loans (2.2%)
Banque Nationale de Paris 370,644 15,812,620
Credit Commercial de France325,400 14,439,921
Total 30,252,541
Building materials & construction (1.2%)
Lafarge-Coppee (Bearer) 253,160 16,604,069
Electronics (0.6%)
SGS-THOMSON
Microelectronics 98,600(b) 7,602,159
Energy (1.4%)
Societe Elf Aquitaine 64,223 $ 6,228,085
Total Petroleum Cl B 164,470 13,638,907
Total 19,866,992
Industrial equipment & services (1.4%)
Michelin 332,323 18,567,726
Leisure time & entertainment (1.3%)
Accor 125,905 18,055,767
Media (0.2%)
Groupe AB ADR 451,780(b) 3,275,405
Germany (5.7%)
Automotive & related (1.3%)
Daimler-Benz 237,000(c) 17,604,736
Chemicals (1.8%)
Bayer 340,320(c) 13,612,800
Hoechst 270,000(c) 10,605,054
Total 24,217,854
Communications equipment & services (0.6%)
Deutsche Telekom 418,070(c) 9,074,987
Leisure time & entertainment (0.9%)
Adidas 116,103 12,104,890
Miscellaneous (1.1%)
SGL Carbon 106,000 14,786,426
Hong Kong (7.5%)
Banks and savings & loans (2.1%)
HSBC Holdings 1,112,800 28,155,786
Communications equipment & services (0.6%)
Hong Kong
Telecommunications 4,920,000(b) 8,447,168
Multi-industry conglomerates (1.2%)
Hutchison Whampoa 1,226,000 9,100,239
Swire Pacific Cl A 1,001,000 7,720,873
Total 16,821,112
Real estate investment trust (3.6%)
Cheung Kong Holdings 1,696,000 14,887,754
Henderson Land
Development 838,000 7,058,606
New World Development 1,380,000 7,963,079
Shum Yip Investment 4,500,000(b) 3,194,991
Sun Hung Kai Properties 797,000 8,642,354
Wharf Holdings 2,040,000 7,716,000
Total 49,462,784
Italy (7.4%)
Banks and savings & loans (1.0%)
Credito Italiano 10,002,000(c) 14,020,053
Communications equipment & services (3.1%)
Stet Risp 8,395,500 31,136,668
Telecom Italia 4,394,000(c) 11,561,299
Total 42,697,967
Energy (2.1%)
Ente Nazionale Idrocarburi5,595,973(c) 28,401,885
Retail (1.2%)
Gucci 225,229 15,692,540
Japan (12.8%)
Automotive & related (0.8%)
Mitsubishi Motors 1,600,000 11,091,416
Electronics (6.0%)
Mitsumi Electric 600,000(c) 12,619,638
NEC 1,926,000 23,516,483
Shinko Electric Inds 220,000(c) 7,538,698
Sony 209,000 15,212,572
TDK 320,000 23,065,107
Total 81,952,498
Financial services (0.4%)
Yasuda Fire & Marine 1,062,000 4,919,106
Health care (0.1%)
Banyu Pharmaceuticals 59,000 906,298
Industrial equipment & services (2.1%)
Dai Nippon Printing 813,000 14,665,957
Secom 240,000 14,273,898
Total 28,939,855
Real estate investment trust (1.8%)
Sumitomo Realty &
Development 3,440,000 24,415,610
Retail (0.9%)
Takashimaya 1,140,000 12,751,978
Wire & cable (0.7%)
Sumitomo Electric Inds 709,000 9,606,364
Malaysia (2.7%)
Automotive & related (0.3%)
Perushaan Otomobil
Nasional 726,000 4,337,781
Banks and savings & loans (1.2%)
Malayan Banking 1,663,000 16,560,445
Building materials & construction (0.2%)
United Engineers Malaysia 393,000 2,786,457
Utilities -- electric (1.0%)
Tenaga Nasional 2,769,000 12,794,422
Mexico (1.4%)
Building materials & construction
Cemex ADR 1,016,700(c) 7,720,566
Grupo Industrial Cl A 2,120,000 11,634,708
Total 19,355,274
Netherlands (5.2%)
Chemicals (1.0%)
Akzo Nobel 111,000(c) 14,304,932
Financial services (1.4%)
Ing Groep 472,207 18,547,396
Furniture & appliances (2.8%)
Philips Electronics 738,380 38,555,822
New Zealand (0.4%)
Paper & packaging
Carter Holt Harvey 2,305,700 5,114,967
Philippines (1.0%)
Electronics (0.2%)
Manila Electric 450,000 2,798,635
Financial services (0.4%)
Philippine Commercial
Intl Bank 364,380 $ 4,490,842
Utilities -- telephone (0.4%)
Philippines Long Distance
Telephone ADR 105,000(c) 5,853,750
Singapore (5.4%)
Airlines (0.7%)
Singapore Airlines 1,164,000 10,293,056
Banks and savings & loans (1.4%)
Overseas Union Bank 1,834,000 12,036,614
United Overseas Bank 706,000 6,633,229
Total 18,669,843
Beverages & tobacco (0.5%)
Fraser & Neave 869,000 6,303,627
Transportation (0.4%)
Keppel 1,406,250 6,120,466
Real estate investment trust (2.4%)
City Developments 1,570,000 12,690,155
DBS Land 3,043,000 9,838,506
Keppel Land 3,979,000 10,225,823
Total 32,754,484
Spain (1.7%)
Communications equipment & services (1.2%)
Telefonica 641,452 16,430,613
Energy (0.5%)
Repsol 165,520(c) 6,939,828
Sweden (2.5%)
Industrial equipment & services
Asea Brown Boveri AB Cl B 1,024,000 12,400,729
Ericsson (LM) B Free Shares 682,000(c) 21,560,543
Total 33,961,272
Switzerland (3.9%)
Financial services (1.2%)
Credit Suisse Group 142,652(c) 16,059,839
Health care (2.7%)
Novartis 20,800(c) $27,394,778
Roche Holdings 1,165 9,836,724
Total 37,231,502
Thailand (0.3%)
Financial services
Advanced Info Service 336,000 2,289,520
Industrial Finance Thailand896,000 2,400,995
Total 4,690,515
United Kingdom (16.5%)
Banks and savings & loans (0.9%)
Lloyds 1,310,170 11,975,106
Building materials & construction (0.8%)
Redland 1,980,900 11,235,778
Communications equipment & services (2.0%)
British Telecommunications3,703,108 27,155,483
Electronics (0.6%)
Premier Farnell 1,138,620 8,644,920
Energy (1.5%)
Shell Transport & Trading1,174,162 20,740,877
Food (1.1%)
Unilever 591,807 15,560,996
Furniture & appliances (0.6%)
EMI Group 403,440 8,002,634
Health care (2.5%)
Glaxo Wellcome 1,718,878 33,803,169
Leisure time & entertainment (1.1%)
Granada Group 1,007,844 14,536,368
Machinery (1.6%)
Siebe 1,501,048 22,185,132
Multi-industry conglomerates (0.2%)
Framlington Maghreb Fund
with Warrants 47,400(b) 3,152,100
Retail (1.6%)
Great Universal Stores 2,076,000 21,464,493
Transportation (0.7%)
NFC4,239,971 9,825,878
Utilities -- electric (1.3%)
BG 5,848,376 16,965,273
Total common stocks
(Cost: $1,084,833,470) $1,228,525,776
Preferred stock & other (1.7%)
Issuer Shares Value(a)
Akzo
Warrant 165,670 $ 1,377,997
BNP
Warrants 256,900 2,352,662
Daimler-Benz
Rights 237,000 20,534
Euro Food
Warrants 60,345 1,648,322
Henkel KGaA 313,560(c) 17,025,062
Keppel
Warrants 511,500 515,917
Total preferred stock & other
(Cost: $20,077,343) $22,940,494
Short-term securities (22.3%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
Commercial paper (17.7%)
ABB Treasury Center USA
05-07-97 5.58% $6,500,000(d) $6,493,987
ABN Amro Canada
07-30-97 5.67 7,000,000 6,896,487
Ameritech Capital Funding
06-11-97 5.56 7,400,000(d) 7,350,796
Associates Corp North America
05-01-97 5.55 9,400,000 9,400,000
Avco Financial Services
05-23-97 5.52 2,000,000 1,993,278
Beneficial
05-01-97 5.56 6,000,000 6,000,000
BOC Group
05-12-97 5.58 9,400,000 9,384,059
06-02-97 5.58 5,100,000 5,074,885
CAFCO
05-29-97 5.54 7,300,000(d) 7,268,659
Cargill
05-12-97 5.52 4,200,000 4,192,942
05-14-97 5.46 8,000,000 7,984,255
06-23-97 5.58 8,300,000 8,229,809
Ciesco LP
05-12-97 5.32 6,300,000 6,287,731
05-21-97 5.54 2,800,000 2,791,429
CIT Group Holdings
05-13-97 5.58 6,500,000 6,487,975
Commercial Credit
05-02-97 5.59 7,500,000 7,498,839
Commerzbank U.S. Finance
05-19-97 5.44 6,900,000 6,879,949
Dean Witter, Discover & Co
05-13-97 5.42 6,200,000 6,188,881
07-03-97 5.65 3,500,000 3,464,533
Ford Motor Credit
05-29-97 5.56 10,000,000 9,957,067
Gannett
05-15-97 5.58 8,000,000(d) 7,982,733
Glaxo Wellcome
05-12-97 5.30 8,000,000(d) 7,983,926
Household Finance
05-05-97 5.54 5,400,000 5,396,694
Metlife Funding
05-01-97 5.35 5,900,000 5,900,000
05-02-97 5.34 7,500,000 7,498,896
05-05-97 5.34 7,300,000 7,295,701
Motorola
06-05-97 5.54 10,000,000 9,946,528
NBD Bank Canada
05-15-97 5.55 8,500,000 8,481,720
05-16-97 5.55 4,300,000 4,290,101
New Center Asset Trust
05-27-97 5.53 4,200,000 4,183,317
Proctor & Gamble
06-06-97 5.54 6,000,000 5,967,000
Reed Elsevier
06-17-97 5.60 3,500,000(d) 3,472,952
SBC Communications Capital
05-28-97 5.54 6,000,000(d) 5,975,205
Societe Generale North America
05-14-97 5.33 12,000,000 11,972,678
Unilever Capital
06-03-97 5.56 6,000,000(d) 5,969,640
USAA Capital
05-09-97 5.32 10,000,000 9,985,454
Total 242,128,106
Letters of credit (4.6%)
Barclays Bank-
Banco Bradesco
06-03-97 5.58 3,000,000 2,984,655
Credit Agricole-
Louis Dreyfus
05-19-97 5.53 11,000,000 10,969,585
05-22-97 5.53 5,349,000 5,331,745
Credit Suisse-
Commed Fuel
05-16-97 5.35 4,266,000 4,254,923
Credit Suisse-
Sunkyong America
05-27-97 5.35 14,000,000 13,937,364
First Chicago-
Commed Fuel
06-18-97 5.62 6,000,000 5,951,834
Toronto Dominion Bank
05-16-97 5.52 12,000,000 11,972,400
Westdeutsche Landesbank-
Beal Argentina
05-06-97 5.35 3,000,000 2,997,318
Westdeutsche Landesbank-
Beal Caymen Brazil
06-16-97 5.58 5,000,000 4,960,782
Total 63,360,606
Total short-term securities
(Cost: $305,532,982) $ 305,488,712
Total investments in securities
(Cost: $1,410,443,795)(e) $1,556,954,982
See accompanying notes to investments in securities.
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) Non-income producing.
(c) Security is partially or fully on loan. See Note 6 to financial statements.
(d) Commercial paper sold within terms of a private placement memorandum, exempt
from registration under Section 4(2) of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "accredited investors."
This security has been determined to be liquid under guidelines established by
the board.
(e) At April 30, 1997, the cost of securities for federal income tax purposes
was approximately $1,410,444,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation.........................................$185,793,000
Unrealized depreciation..........................................(39,282,000)
-----------
Net unrealized appreciation.....................................$146,511,000
============
<PAGE>
Board members and officers of the Fund
President and interested
board member
William R. Pearce
Chief executive officer, Board Services Corporation (provides
administrative services to boards including the boards of the IDS and
IDSLife funds and Master Trust portfolios).
Independent
board members
H. Brewster Atwater Jr.
Former chairman and chief executive officer, General Mills, Inc.
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 Reader's Digest Association, Inc.
Alan K. Simpson
Former United States senator for Wyoming.
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
Senior advisor to the chief executive officer, 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
Senior vice president, AEFC. Vice president - Investments for the Fund.
Melinda S. Urion
Senior vice president and chief financial officer, AEFC. Treasurer for the
Fund.
Other officer
Leslie L. Ogg
President, treasurer and corporate secretary of Board Services
Corporation. Vice president, general counsel and secretary for the Fund.
Refer to the SAI for the board members' and officers' biographies.
<PAGE>
IDS mutual funds
Global/International funds
Funds in this group seek capital growth and/or income by investing primarily in
foreign securities. Foreign investments may be subject to currency fluctuations
and political and economic risks of the countries in which the investments are
made. They are high risk mutual funds with a potential for high reward.
IDS Emerging Markets Fund
Invests in a Portfolio comprised primarily of stocks of companies in developing
countries throughout the world that are believed to offer growth potential.
Seeks to provide long-term growth of capital.
(icon of) world globe
IDS Global Growth Fund
Invests in a Portfolio comprised primarily of 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 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 Global Balanced Fund
Invests in stocks-and bonds in, for the most part, major markets throughout the
world, including the U.S. Seeks to provide a balance of growth of capital and
current income.
(icon of) scale of globes
IDS Global Bond Fund
Invests in a Portfolio comprised primarily of debt securities of U.S. and
foreign issuers to seek high total return through income and growth of capital.
(icon of) globe
Growth funds
Funds in this group seek capital growth, primarily from common stocks. They are
high risk mutual funds with a potential for high reward.
IDS 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. A
highly aggressive and speculative fund that seeks long-term growth of capital.
(icon of) cart of precious gems
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 Small Company Index Fund
Invests in all or a representative group of the equity securities comprising the
S&P SmallCap 600 Index, as it strives to provide long-term capital appreciation.
(icon of) building
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 Research Opportunities Fund
Invests in a Portfolio comprised primarily of equity securities of companies
included in the S&P 500 Index that are believed to have strong growth potential.
The Portfolio is managed using a research methodology by the Research Department
of AEFC. Goal is long-term appreciation.
(icon of) magnifying glass
IDS Growth Fund
Invests in a Portfolio comprised primarily of companies that have above-average
potential for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS New Dimensions Fund
Invests in a Portfolio comprised primarily of 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
Growth and income funds
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.
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 pine 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 Managed Allocation Fund
Invests in a Portfolio comprised primarily of U.S. equity securities, U.S. and
foreign debt securities, foreign equity securities and money market instruments.
The Fund provides diversification among these major investment categories and
has a target mix that represents the way the Fund's investments will be
allocated over the long term. Seeks maximum total return.
(icon of) spinning toy
IDS Stock Fund
Invests in a Portfolio comprised primarily of common stocks of companies
representing many sectors of the economy. Seeks current income and growth of
capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential for growth
of capital and income.
(icon of) three growing flowers
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek high current
income and growth of income and capital with reduced volatility.
(icon of) light bulb
IDS Diversified Equity Income Fund
Invests in a Portfolio comprised 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) two puzzle pieces
IDS Mutual
Invests in a Portfolio which seeks to 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
Income funds
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 Extra Income Fund
Invests in a Portfolio comprised 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
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 a Portfolio comprised primarily of 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 in a Portfolio comprised primarily of 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 funds
These funds provide tax-free income by investing in municipal bonds. The income
is generally free from federal income tax, but a portion of the income may be
subject to state and local taxes. Risk varies by bond quality.
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
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 High Yield Tax-Exempt Fund
Invests in a Portfolio comprised primarily of 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 Intermediate Tax-Exempt Fund
Invests in mainly investment-grade bonds and other debt securities with
intermediate-term maturities issued by state and local government units. Goal is
to seek a high level of current income exempt from federal taxes.
(icon of) shield with tree enclosed
Money market funds
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current
income consistent with these objectives. An investment in
these funds is neither insured nor guaranteed by the U.S. government,
and there can be no assurance that these funds
will be able to maintain a stable net asset value of $1.00
per share. 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
<PAGE>
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
PAGE
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(R) 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
PAGE
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Fund
IDS Tower 10
Minneapolis, MN 55440-0010
