IDS
Precious
Metals
Fund
1994 semiannual report
(icon of: cart of precious gems)
The goal of IDS Precious Metals Fund, Inc. is long-term growth of
capital. The fund invests primarily in securities of companies engaged
in exploration, mining, processing or distribution of gold and other
precious metals. Most of these companies will be located outside of the
United States.
Distributed by IDS Financial Services Inc.
FINANCIAL PLANNING
IDS
An American Express company
AMERICAN
EXPRESS
<PAGE>
(icon of: cart of precious gems)
While investors typically look to stocks and bonds for the best return
on their money, there are times when hard assets such as gold can play
a small but important role in a diversified portfolio. Because owning the
metal itself is often impractical, most investors put their money in
stocks of companies that mine gold and other precious metals. Those
stocks, which form the bedrock of IDS Precious Metals Fund, usually move
in tandem with the prices of the metals.
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 14
Directors and officers 16
IDS mutual funds 17
<PAGE>
To our shareholders
(Picture of William Pearce)
William R. Pearce
President of the fund
(Picture of Richard Warden)
Richard H. Warden
Portfolio Manager
From the president
All of the funds in the IDS MUTUAL FUND GROUP held shareholder meetings
on Nov. 9, 1994. The meetings, which were well-attended, approved all of
the proposals advanced by management. Among the proposals were:
* The election of directors and the selection of KPMG Peat Marwick LLP
as independent auditors for each of the funds in the group.
* A new investment management agreement that will become effective for
each fund when it begins offering multiple classes of shares, now planned
to occur in early March, 1995.
* A change in investment policy that will permit the fund to adopt a
master/feeder structure if and when the board of each fund determines
that it is in the best interest of shareholders.
* A change with respect to the "fundamental investment polices" that
allows the board to modify them should it deem appropriate.
* And finally reclassifying the fund as non-diversified.
No other business was presented at the meeting, which was concluded by
a report to shareholders from the IDS Investment Department.
Thanks to all of you for your effort in reviewing the proxy material and
voting your proxies.
William R. Pearce
<PAGE>
From the portfolio manager
A powerful rally by gold stocks late in the past six months propelled IDS
Precious Metals Fund to a solid return for the period ended Sept. 30,
1994. The strong finish more than made up for a decline last spring and,
for the six months, put the fund well ahead of the stock market as a
whole (as measured by the Standard & Poor's 500 Stock Index, a group of
unmanaged stocks commonly used as a gauge for the market's performance).
The weakness among metals stocks at the outset of the period was a
carryover from a much sharper decline that occurred in the first quarter
of the year. This largely resulted from selling pressure created by
investors who wanted to take profits from their investments in gold
stocks, which had recorded exceptional gains in 1993. In addition,
investors in the Far East began curtailing their buying of gold bullion
while, here at home, interest rates were rising. Both of these factors
helped keep gold-stock prices down.
Inflation fear fires stocks
After a lackluster early summer, metals stocks and the fund began to
gather forward momentum in July. The primary impetus was growing concern
about the potential for a marked increase in the inflation rate. As it
usually has throughout modern history, the price of gold rose in response
to that concern.
True to their nature, gold stocks moved up before the price of the metal
itself and at a more rapid rate. The advance picked up speed in August
and, in September, reached a blistering pace. In that final month, the
fund surged by nearly 10%.
Also lending support to gold stocks during that time was a positive
supply/ demand situation - healthy worldwide demand for gold with no
increase in supply. In addition, appreciating currencies in dominant
investment markets such as South Africa, Australia and Canada enhanced
the fund's return.
The strongest market during the period was South Africa. We sold a modest
amount of our holdings there, moving some of the profits into West
Africa, a new mining area that we believe offers good potential. Other
than that, the portfolio was essentially unchanged from last spring.
Environment remains positive
As for the current fiscal year, the key factors that have been working
in gold's favor remain in place. Inflation, while not yet at a
threatening pace in the U.S., appears to be increasing and has already
reached a high level in China, which has been a big buyer of gold in the
past. Second, worldwide demand for gold, especially jewelry, continues
to exceed supply, a condition that should be supported by improving
economies in many major markets. While we think that bodes well for the
fund over the longer term, short-term movements, as always, are
unpredictable. Investors should expect considerable ongoing volatility
- - potentially sharp downturns as well as upturns - in the months ahead.
Richard H. Warden
<PAGE>
To Our Shareholders (continued)
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________________
Sept. 30, 1994 $ 9.08
_____________________________________
March 31, 1994 $ 8.44
_____________________________________
Increase $ 0.64
Distributions
April 1, 1994 - Sept. 30, 1994
______________________________________
From income $ --
______________________________________
From capital gains $ --
______________________________________
Total distributions $ --
Total return* +7.6%
______________________________________
*If you purchased shares in the fund during this period, your return also
would have been affected by the sales charge, as described in the
prospectus.
<PAGE>
PAGE
<TABLE>
IDS Precious Metals Fund, Inc.
<CAPTION>
Your fund's ten largest holdings
Picture of pie chart: The ten holdings listed here make up 56.11% of
the funds's net assets
Percent Value
(of fund's net assets)(as of Sept. 30, 1994)
<S> <C> <C>
American Barrick Resources 9.79% $7,721,250
North American precious metals producer
Freeport McMoRan Copper & Gold 7.13 5,625,000
Gold, silver and cooper producer in Indonesia
Sons of Gwalia 6.81 5,374,200
Australian precious metals producer
TVX Gold 6.66 5,249,822
South American precious metals producer
Placer Dome 5.74 4,522,500
International precious metals producer
Dayton Mining 4.45 3,505,500
South American precious metals producer
Plutonic Resources 4.07 3,212,300
Australian precious metals producer
Cambior 3.97 3,132,580
North and South American precious metals producer
Euro-Nevada Mining 3.90 3,076,640
North American gold royalty company
Canarc 3.59 2,834,200
Canadian gold exploration company. Developing mines
in Canada and exploring both South America and West Africa.
</TABLE>
<PAGE>
PAGE
<TABLE> Financial statements
Statement of assets and liabilities
IDS Precious Metals Fund, Inc.
Sept. 30, 1994
<CATION>
Assets
_____________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated issuers
(indentified cost $54,800,595) $78,904,545
Investments in securities of affiliated issuer
(identified cost $2,121,800) 2,218,930
___________
Total investments in securities (identified cost $56,922,395) 81,123,475
Dividends and accrued interest receivable 134,692
_____________________________________________________________________________________________________________
Total assets 81,258,167
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursementsa in excess of cash on demand deposit 662,757
Payable upon return of securities loaned (Note 6) 1,600,000
Accrued investment management and services fee 53,787
Accrued distribution fee 6,901
Accrued transfer agency fee 17,228
Other accrued expenses 48,646
_____________________________________________________________________________________________________________
Total liabilities 2,389,319
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $78,868,848
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value;
outstanding 8,687,560 shares $ 86,876
Additional paid-in capital 82,556,780
Undistributed net investment income (Note 1) 293,590
Accumulated net realized loss (28,269,478)
Unrealized appreciation 24,201,080
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $78,868,848
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 9.08
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Statement of operations
IDS Precious Metals Fund, Inc.
Six months ended Sept. 30, 1994
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Dividends (net of foreign taxes withheld of $10,704) $ 523,602
Interest 115,814
_____________________________________________________________________________________________________________
Total income 639,416
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 304,934
Distribution fee 42,304
Transfer agency fee 105,633
Compensation of directors 915
Compensation of officers 333
Custodian fees 37,614
Postage 9,867
Registration fees 10,645
Reports to shareholders 2,396
Audit fees 9,000
Administrative 1,247
Other 2,348
_____________________________________________________________________________________________________________
Total expenses 527,236
_____________________________________________________________________________________________________________
Investment income -- net 112,180
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
______________________________________________________________________________________________________________
Net realized loss on security and foreign currency transactions
(including loss of $281 from foreign currency transactions) (Note 3) (237,769)
Net change in unrealized appreciation or depreciation 5,988,596
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 5,750,827
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $5,863,007
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statement of changes in net assets
IDS Precious Metals Fund, Inc.
<CAPTION>
Operations and distributions Sept. 30. 1994 March 30, 1994
_____________________________________________________________________________________________________________
(Unaudited)
<S> <C> <C>
Investment income -- net $ 112,180 $ 312,287
Net realized gain (loss) on investments and foreign currency (237,769) 9,988,564
Net change in unrealized appreciation or depreciation 5,988,596 11,276,891
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 5,863,007 21,577,742
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (536) (300,226)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
5,299,422 and 16,147,926 shares (Note 2) 43,045,602 127,104,496
Net asset value of 61 and 33,825 shares
issued in reinvestment of distributions 536 294,640
Payments for redemptions of
5,361,212 and 16,262,033 shares (43,879,653) (127,803,264)
_____________________________________________________________________________________________________________
Decrease in net assets from capital share transactions
representing net reduction of
61,729 and 80,282 shares (833,515) (404,128)
_____________________________________________________________________________________________________________
Total increase in net assets 5,028,956 20,873,388
Net assets at beginning of period 73,839,892 52,966,504
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$293,590 and $181,946) $78,868,848 $73,839,892
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE
Notes to financial statements
IDS Precious Metals Fund, Inc.
(Unaudited as to Sept. 30, 1994)
______________________________________________________________________________
1. Summary of significant accounting policies
The fund is registered under the Investment Company
Act of 1940 (as amended) as a diversified, open-end
management investment company. Significant accounting
policies followed by the fund are summarized below:
Valuation of securities
All securities are valued at the close of each
business day. Securities traded on national
securities exchanges or included in national market
systems are valued at the last quoted sales price;
securities for which market quotations are not
readily available, including illiquid securities, are
valued at fair value according to methods selected in
good faith by the board of directors. Determination
of fair value involves, among other things, reference
to market indexes, matrixes and data from independent
brokers. Short-term securities maturing in more than
60 days from the valuation date are valued at the
market price or approximate market value based on
current interest rates; those maturing in 60 days or
less are valued at amortized cost. Investments in
metals are valued daily using data from independent
brokers and pricing services.
Options transactions
In order to produce incremental earnings, protect
gains, and facilitate buying and selling of
securities for investment purposes, the fund may buy
or write options traded on any U.S. or foreign
exchange or in the over-the-counter market where the
completion of the obligation is dependent upon the
credit standing of the other party. The fund also may
buy and sell put and call options and write covered
call options on portfolio securities and may write
cash-secured put options. The risk in writing a call
option is that the fund gives up the opportunity of
profit if the market price of the security increases.
The risk in writing a put option is that the fund may
incur a loss if the market price of the security
decreases and the option is exercised. The risk in
buying an option is that the fund pays a premium
whether or not the option is exercised. The fund also
has the additional risk of not being able to enter
into a closing transaction if a liquid secondary
market does not exist.
<PAGE>
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.
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.
<PAGE>
The fund may enter into forward foreign currency
exchange contracts for hedging 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.
<PAGE>
Dividends to shareholders
An annual dividend declared and paid by the end of
the calendar year from net investment income is
reinvested in additional shares of the fund at net
asset value or payable in cash. Capital gains, when
available, are distributed along with the income
dividend.
Other
Security transactions are accounted for on the date
securities are purchased or sold. Dividend income is
recognized on the ex-dividend date or upon receipt of
ex-dividend notification in the case of certain
foreign securities. Interest income, including
level-yield amortization of premium and discount is
accrued daily.
______________________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991, the
fund pays IDS Financial Corporation (IDS) a fee for
managing its investments, recordkeeping and other
specified services. The fee is a percentage of the
fund's average daily net assets consisting of a group
asset charge in reducing percentages from 0.46% to
0.32% annually on the combined net assets of all
non-money market funds in the IDS MUTUAL FUND GROUP
and an individual annual asset charge of 0.46% of
average daily net assets. The fee is adjusted upward
or downward by a performance incentive adjustment
based on the fund's average daily net assets over a
rolling 12-month period as measured against the
change in the Lipper Gold 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 $3,357 for the six months ended
Sept. 30, 1994.
The fund also pays IDS a distribution fee at an
annual rate of $6 per shareholder account and a
transfer agency fee at an annual rate of $15 per
shareholder account. The transfer agency fee is
reduced by earnings on monies pending shareholder
redemptions.
IDS will assume and pay any expenses (except taxes
and brokerage commissions) that exceed the most
restrictive applicable state expense limitation.
Sales charges by IDS Financial Services Inc. for
distributing fund shares were $132,609 for the six
months ended Sept. 30, 1994. The fund also pays
custodian fees to IDS Trust Company, an affiliate of
IDS.
<PAGE>
The fund has a retirement plan for its independent
directors. Upon retirement, directors receive monthly
payments equal to one-half of the retainer fee for as
many months as they served as directors up to 120
months. There are no death benefits. The plan is not
funded but the fund recognizes the cost of payments
during the time the directors serve on the board.
The retirement plan expense amounted to $73 for the
six months ended Sept. 30, 1994.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of
securities (other than short-term obligations)
aggregated $12,612,136 and $11,715,110, respectively,
for the six months ended Sept. 30, 1994. Realized
gains and losses are determined on an identified cost
basis.
______________________________________________________________________________
4. Illiquid securities
At Sept. 30, 1994, investments in securities included
issues that are illiquid. The fund currently limits
investments in illiquid securities to 10% of the net
assets, at market value, at the time of purchase. The
aggregate value of such securities at Sept. 30, 1994,
was $999,997 which represents 1.3% of net assets.
Pursuant to guidelines adopted by the fund's board
of directors, certain unregistered securities are
determined to be liquid and are not included within
the 10% limitation specified above.
______________________________________________________________________________
5. Capital loss carryover
For federal income tax purposes, the fund has a
capital loss carryover of approximately $28,269,000
at Sept. 30, 1994 that will expire in 1998 through
2002 if not offset by subsequent capital gains. It is
unlikely the board of directors will authorize a
distribution of any realized capital gain until
the available capital loss carryover has been
offset or expires.
_____________________________________________________________________________
6. Lending of portfolio securities
At Sept. 30, 1994, securities valued at $1,402,000
were on loan to brokers. For collateral, the fund
received $1,600,000 in cash. Income from securities
lending amounted to $4,507 for the six months ended
Sept. 30, 1994. The risks to the fund of securities
lending are that the borrower may not provide
additional collateral when required or return the
securities when due.
<PAGE>
PAGE
<TABLE>
Notes to financial statements (continued)
IDS Precious Metals Fund, Inc.
______________________________________________________________________________
7. Financial highlights
The table below shows certain important financial
information for evaluating the fund's results.
Fiscal period ended March 31,
Per share income and capital changes*
<CAPTION>
1994** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $8.44 $6.00 $5.15 $5.40 $6.98 $6.76
beginning of period
Income from investment operations:
Net investment income .01 .04 .04 .06 .12 .21
Net gains (losses) on .63 2.44 .84 (.24) (1.57) .10
securities (both realized
and unrealized)
Total from investment .64 2.48 .88 (.18) (1.45) .31
operations
Less distributions:
Dividends from net -- (.04) (.03) (.07) (.13) (.09)
investment income
Net asset value, $9.08 $8.44 $6.00 $5.15 $5.40 $6.98
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period
(in millions) $79 $74 $53 $53 $68 $91
Ratio of expenses to 1.49%*** 1.51% 1.79% 1.59% 1.48% 1.46%
average daily net assets
Ratio of net income to .32%*** .46% .86% .64% 1.95% 2.75%
average daily net assets
Portfolio turnover rate 17% 49% 19% 21% 54% 76%
(excluding short-term
securities)
Total return+ 7.6%++ 41.3% 17.2% (3.3%) (20.8%) 4.4%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Sept. 30, 1994, (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended Sept. 30, 1994, the annualized total
return is 15.6%.
</TABLE>
<PAGE>
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<TABLE>
Investments in securities
IDS Precious Metals Fund, Inc.
(Percentages represent value of
Sept. 30, 1994 (Unaudited) investments compared to net assets)
<CAPTION>
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (84.2%)(c)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<C> <C> <C>
Australia (18.2%)
Delta Gold 600,000 (b) $ 1,234,200
Mount Burges Gold Mining 400,000 (b) 103,600
Newcrest Mining 200,000 1,008,200
Niugini Mining 200,000 (b) 806,800
Plutonic Resoures 700,000 3,212,300
Poseidon Gold 386,703 1,139,227
Resolute Resources 1,000,000 (b) 940,000
Sons of Gwalia 600,000 5,374,200
Wiluna Mines 500,000 (b) 547,500
____________
Total 14,366,027
_____________________________________________________________________________________________________________________________
North/South America (51.7%)
Amer Barrick Resoures 290,000 7,721,250
Cambior 200,000 3,132,580
Canarc Resources 1,000,000 (b) 2,834,200
Carson Gold 120,200 (b) 286,881
Dayton Mining 1,000,000 (b,d) 3,505,500
Euro-Nevada Mining 100,000 3,076,640
Francisco Gold 150,000 (b) 156,630
Freeport McMoRan Copper & Gold 225,000 5,625,000
Golden Star Resources 100,000 (b) 1,342,530
Newmont Gold 20,000 875,000
Placer Dome 180,000 4,522,500
San Fernando Mining 100,000 (b) 320,720
Santa Fe Pacific 50,000 1,131,250
Stillwater Mining 227,272 (b,h) 999,997
TVX Gold 686,700 (b) 5,249,822
____________
Total 40,780,500
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.<PAGE>
PAGE
South Africa (13.0%)
Driefontein Consolidated ADR 80,000 $ 1,280,000
Free State Consolidated Gold ADR 30,000 519,375
Hartebeestfontein Gold Mining ADR 265,000 1,537,000
Kloof Gold Mining ADR 150,000 2,531,250
Loraine Gold Mines 100,000 (b) 562,700
Vaalreefs Exploration Mining ADR 200,000 2,250,000
Western Deep Levels ADR 30,000 1,556,250
____________
Total 10,236,575
_____________________________________________________________________________________________________________________________
United Kingdom (1.3%)
Ashanti Gold 50,000 (b,e) 1,005,000
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $42,021,583) $66,388,102
_____________________________________________________________________________________________________________________________
<CAPTION>
Preferred stocks & other (6.8%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Carson Gold Units 600,000 (b) 1,454,400
Dayton Mining
Warrants 292,500 (i) --
Echo Bay Finance
$1.75 Cv Cl D 50,000 2,112,500
Euro-Nevada Mining
Warrants 40,000 (c) 287,120
Santa Elina
Warrants 1,000,000 1,500,000
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $5,512,422) $5,354,020
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
<CAPTION>
Bonds (0.6%)(c)
_____________________________________________________________________________________________________________________________
Issuer and Principal Value(a)
coupon rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Agnico Eagle Mines
(U.S. Dollar)
3.50% Cv 2004 $ 100,000 $ 91,000
Escom
(South African Rand)
11% 2008 2,400,000 388,848
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $584,015) $ 479,848
_____________________________________________________________________________________________________________________________
Short-term securities (8.5%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (1.8%)
Federal Natl Mtge Assn
Disc Note
10-14-94 4.76% $500,000 $ 499,142
Student Loan Marketing Assn
Disc Note
10-20-94 4.73 900,000 897,763
___________
Total 1,396,905
_____________________________________________________________________________________________________________________________
Commercial paper (6.7%)
Corporate Asset Funding
10-26-94 4.80 1,500,000 1,495,021
Duke Power
10-12-94 4.77 1,000,000 998,549
Lincoln Natl
10-28-94 4.96 1,000,000 (f) 996,295
Melville
10-19-94 4.78 1,100,000 1,097,382
U S WEST Communications
10-18-94 4.79 700,000 698,423
____________
5,285,670
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $6,682,575) $ 6,682,575
_____________________________________________________________________________________________________________________________
Total investments in securities
of unaffiliated issuers
(Cost: $54,800,595) $78,904,545
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Investments in securities of affiliated issuer (g)
_____________________________________________________________________________________________________________________________
Common stock (2.8%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Intl Gold Resources 700,000 (b) $ 2,218,930
_____________________________________________________________________________________________________________________________
Total investments in securities of affiliated issuer
(Cost: $2,121,800) 2,218,930
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $56,922,395)(j) $81,123,475
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Presently non-income producing.
(c) Foreign security values are stated in U.S. dollars. For debt securities, denominated in the
currency indicated.
(d) Security is partially on loan. See Note 6 to the financial statements.
(e)Represents a security sold under Rule 144A, which is exempt from registration under the Securities
Act of 1933, as amended. This security has been determined to be liquid under
guidelines established by the board of directors.
(f)Commercial paper sold within terms of a private placement memorandum, exempt from regristration 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 of directors.
(g)Investments represents 5% or more of the outstanding voting securities of the issuer.
(h)Identified issues considered to be illiquid (see Note 4 to the financial
statements). Information concerning such security holdings at Sept. 30, 1994, is as follows:
<CAPTION>
Security Acquisition Cost
date
_______________________________________________________________________________
<S> <C> <C>
Stillwater Mining 09-13-94 $999,997
_______________________________________________________________________________
(i) Presently negligible market value.
(j) At Sept. 30, 1994, the cost of securities for federal income tax purposes was approximately
$56,922,000 and the approximate aggregate gross unrealized appreciation and depreciation
based on that cost was:
<CAPTION>
<S> <C>
Unrealized appreciation $26,749,000
Unrealized depreciation (2,548,000)
___________________________________________________________________________________________
Net unrealized appreciation $24,201,000
___________________________________________________________________________________________
</TABLE>
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Directors and officers
Directors and officers of the fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested directors who are officers and/or employees of IDS
William H. Dudley
Exective vice president, IDS.
David R. Hubers
President and chief executive officer, IDS.
John R. Thomas
Senior vice president, IDS.
_____________________________________________________________________
Other officer
Leslie L. Ogg
Vice president of all funds in the IDS MUTUAL FUND GROUP and general
counsel and treasurer of the publicly offered funds.<PAGE>
PAGE
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.
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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.
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IDS Strategy, Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
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IDS Selective Fund
Invests in high quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the timely
payment of principal and interest by the U.S. government, its agencies
and instrumentalities. Seeks a high level of current income and
safety of principal consistent with its type of investments.
(icon of) federal building
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and notes
to seek a high level of current income.
(icon of) chess piece
Tax-exempt income investments
These funds provide tax-free income by investing in municipal bonds.
The income is generally free from federal income tax. Risk varies
by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
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IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities
to provide income to residents of each respective state that is
exempt from federal, state and local income taxes. (New York
is the only state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk bond
categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the Fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
Growth and income investments
These funds focus on securities of medium to large, well-established
companies that offer long-term growth of capital and reasonable income
from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The Fund may invest up to 20%
of its assets in the U.S. market.
(icon of) three flags
IDS Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the world
that offer potential for superior growth. Holdings may range from
small- to large- capitalization stocks, including those of companies
involved in areas of rapid economic growth.
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IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income
investments and money market securities to seek a maximum total
return through a combination of growth of capital and current income.
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<PAGE>
PAGE
IDS Equity Plus 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 IDS research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) chess piece
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high current
income and, secondarily, to benefit from the growth potential offered
by stock investments.
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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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PAGE
Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy, Aggressive Equity Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy.
These companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth
potential due to superiority in technology, marketing or management.
The fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
<PAGE>
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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.
(icon of) cart of precious gems
For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your financial
planner or writing to IDS Shareholder Service, P.O. Box 534, Minneapolis,
MN 55440-0534. Read it carefully before you invest or send money.
<PAGE>
PAGE
Quick telephone reference
IDS Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota:
800-437-3133
Mpls./St. Paul area:
671-3800
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS Infoline
Automated account information (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
Your IDS financial planner
AN AMERICAN EXPRESS COMPANY
1894 IDS 1994
A CENTURY OF INVESTING IN THE FUTURE
IDS Precious Metals Fund
IDS Tower 10
Minneapolis, MN 55440-0010
