<PAGE>
PAGE 1
FINANCIAL PLANNING
IDS Life Series Fund, Inc.
1994 annual report
(prospectus enclosed)
(Icon of) Saturn and moon
Offers five portfolios with separate goals and objectives to
provide investment flexibility for Variable Life Insurance
Policies.
IDS
An American Express company
AMERICAN
EXPRESS
Managed by IDS Life Insurance Company
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PAGE 2
Contents
(Icon of) One book inside of another and their both being opened
together.
The purpose of this annual report is to tell investors how the
portfolios performed.
The prospectus, which is bound into the middle of this annual
report, describes the portfolios in detail.
See page 2 of the prospectus for a detailed prospectus contents.
1994 annual report
From the president 4
Equity Portfolio
From the portfolio manager 5
Ten largest holdings 6
Long-term performance 7
Income Portfolio
From the portfolio manager 8
Ten largest holdings 9
Long-term performance 10
Money Market Portfolio
From the portfolio manager 11
Managed Portfolio
From the portfolio manager 12
Ten largest holdings 13
Long-term performance 14
Government Securities Portfolio
From the portfolio manager 15
Long-term performance 16
All portfolios
Independent auditors' report 17
Financial statements 18
Notes to financial statements 23
Investments in securities 29
1994 prospectus
The fund in brief 3p
Sales charge and fund expenses 4p
Performance 5p
Investment policies and risk 13p
How to invest, transfer or redeem shares 17p
Distributions and taxes 18p
How the fund is organized 19p
About IDS 23p
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PAGE 3
To our policyowners
(Photo of) Richard W. Kling, President
From the president
Diversification and balance continue to be critical elements in a
financial strategy. IDS Life provides those elements by combining
the five investment options of IDS Life Series Fund with life
insurance protection. You can allocate your policy's value among
these portfolios.
As you read this report, you'll find it very different form those
you've received from us in the past. We've made substantial
changes to the design and organization to make the information
easier to find and understand.
The annual report and prospectus are combined into a single
document, and each provides information important to you. The
annual report gives you the fund's performance information and a
snapshot of its investments. A good place to begin is with the
portfolio managers' comments, which described the events and
investment strategies that most influenced performance during the
year.
In redesigning our reports, we asked IDS financial planners and
some of you for suggestions and recommendations. We believe that
you'll find the results of our work worthwhile.
Sincerely,
Richard W. Kling
President
IDS Life Series Fund, Inc.
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PAGE 4
Equity Portfolio
(Photo of) Martin G. Hurwitz, Portfolio manager
From the portfolio manager
Despite a sharp decline late in the fiscal year, Equity Portfolio
generated a return well into double digits and well ahead of the
stocks in general (as measured by the Standard & Poor's 500 Stock
Index, an unmanaged index of common stocks commonly used to reflect
market gains and losses).
Much of the gain came last summer and fall, when falling interest
rates provided an overall boost to the stock market. Especially
profitable were our holdings in two stock groups -- technology
(including computer, telecommunications and office equipment
companies), and consumer (such as airline, auto and retailing
companies).
Interest rates began rising, however, in early February, sending
the stock market into retreat essentially through April, the end of
the fiscal year. Although the portfolio was negatively affected by
this trend, our higher-than-average level of cash reserves provided
a cushion against the downturn. We also continued to increase the
number of stocks in the portfolio, which helps provide protection
in a volatile market.
Although the investment focus remains on emerging growth stocks, a
change in managers (which become effective in July 1993) has
resulted in a substantially restructured portfolio. Perhaps the
major change has been the adoption of new stock-selection criteria.
While we still look for companies with well-above-average earnings
growth, substantial emphasis is placed on companies with
outstanding management. Beyond that, we lean toward companies that
enjoy very strong positions in their respective businesses.
Typically, these are the companies that can generate annual
earnings increases of at least 20%, with the earnings coming from
improving sales rather than corporate restructuring. Finally, we
insist on stocks whose reward potential, in our opinion, greatly
outweighs their risk potential.
Given our high level of cash and our expectation that the market
will stabilize, we should have some excellent buying opportunities
in the months ahead. We anticipate increasing our holdings in
technology stocks and in the consumer area, particularly in
financial services, specialty retailing and health care.
We are also prepared to increase our holding in biotechnology and
service companies.
Martin G. Hurwitz
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PAGE 5
Your portfolio's ten largest holdings
Equity Portfolio
The ten holdings listed here make up 16.80% of the portfolio's net
assets.
<TABLE><CAPTION>
Common stocks Percent Value
(of portfolio's net assets) (as of April 30, 1994)
<S> <C> <C>
IDEXX Laboratories 2.61% $3,960,000
Manufacturer of animal biomedical test products
Cisco Systems 2.40 3,637,500
Manufacturer of computer network products
Medaphis 2.29 3,475,000
Medical accounts receivable management services
Broadway & Seymour 1.58 2,400,000
Information technology solutions for financial services industry
Compuware 1.51 2,293,750
Developer of system software to improve programmer productivity
Fastenal 1.47 2,240,000
Fasteners and construction supply stores
ADVANTA Class A 1.27 1,925,000
Fifth largest credit card issuer in the United States
Rio Hotel & Casino 1.26 1,912,500
Operates gaming resorts
Roosevelt Financial Group 1.24 1,885,000
Bank holding company
Standard Microsystems 1.17 1,781,250
Manufacturer of local area network computer equipment and software
Excludes short-term securities.
</TABLE>
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PAGE 6
Your portfolio's long-term performance
Equity Portfolio
How your $10,000 has grown in Equity Portfolio
S&P 500 x
x $26,865
$20,000 Equity Portfolio
x
Lipper Growth
& Income Fund Index
x
$10,000
1/20/86 `86 `87 `88 `90 `91 `92 `93 `94
Average annual total return
(as of Apr. 30, 1994)
Since
1 year 5 years 1/20/86
+19.72% +15.07% +12.67%
On the chart above you can see how the portfolio's total return
compared to two widely cited performance indexes, the S&P 500 and
the Lipper Growth & Income Fund Index.
Standard & Poor's Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
Lipper Growth & Income Fund Index, published by Lipper Analytical
Services, Inc., includes 30 funds that are generally similar to
this fund, although some funds in the index may have somewhat
different investment policies or objectives.
Your investment and return value fluctuate so that your
accumulation units, when redeemed, may be worth more or less than
their original cost. Past performance is no guarantee of future
results. The above chart does not reflect expenses that apply to
the subaccounts or the policies.
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PAGE 7
To our policyowners
Income Portfolio
(Photo of) Lorraine R. Hart, Portfolio manager
From the portfolio manager
Despite a sharp decline in the bond market late in the fiscal year,
the portfolio again provided a positive return to investors.
For the first several months of the past year, the investment
environment was characterized by a modestly improving economy, a
low inflation rate and stable-to-declining interest rates. That's
an excellent prescription for bonds, as was borne out by the strong
performance of the portfolio during that time.
Corporate bonds, the largest portion of the portfolio, registered
good gains. We maintained a mix of both investment grade (higher
quality) and below-investment-grade (lower quality) bonds
throughout those months. This enabled the portfolio to generate
above-average income without incurring undue investment risk. The
portfolio's return also was enhanced by our focus on bonds with
longer maturities, which appreciate the most when interest rates
fall, as happened during the spring and summer of 1993.
The environment changed dramatically in early February, when the
Federal Reserve began raising short-term interest rates to head off
a potential spike in inflation. Because bond prices automatically
fall when rates rise, the bond market reacted negatively. The rate
rise and market decline continued through April, the close of the
period. We responded to the trend by substantially raising our
level of cash reserves and reducing the average maturity of the
portfolio, two defensive strategies that tend to temper market
volatility.
As we look at the current fiscal year, we still enjoy moderate
economic growth and low inflation. And while those are positive
factors for bonds, there remains enough uncertainty in the market
to prolong the volatility for the near term. Therefore, we plan to
gradually reinvest our cash reserves, sticking with our emphasis on
corporate bonds and complementing them with mortgage-backed and
treasury securities.
Lorraine R. Hart.
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PAGE 8
Your portfolio's ten largest holdings
Income Portfolio
The ten holdings listed here make up 9.58% of the portfolio's net
assets
<TABLE>
<CAPTION>
Bonds Percent Value
(of portfolio's net assets) (as of April 30, 1994)
<S> <C> <C>
Guang Dong Enterprise
(U.S. Dollar), 8.75%, 12-15-03 1.09% $368,500
Peoples' Republic of China
(U.S Dollar), 6.50%, 02-17-04 1.03 349,000
FNMA
8.00%, 01-25-21 1.02 345,932
Coastal
9.75%, 08-01-03 0.96 324,375
First Chicago
8.875%, 03-15-02 0.94 318,375
Countrywide Funding
8.42%, 03-01-99 0.93 313,125
Carco Auto
7.875%, 03-15-98 0.91 308,466
Noranda Forest
(U.S. Dollar), 8.875%, 10-15-99 0.91 306,750
Citicorp
8.00%, 02-01-03 0.90 303,375
USX
9.375%, 05-15-22 0.89 300,000
Excludes short-term securities.
</TABLE>
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PAGE 9
Your portfolio's long-term performance
Income Portfolio
How your $10,000 has grown in Income Portfolio
x
$18,661
Income Portfolio
x
x Lehman Aggregate
$10,000 Bond Index
1/20/86 `86 `87 `88 `90 `91 `92 `93 `94
Average annual total return
(as of Apr. 30, 1994)
Since
1 year 5 years 1/20/86
+2.12% +9.90% +7.77%
On the chart above you can see how the portfolio's total return
compared to a widely cited performance index, the Lehman Aggregate
Bond Index.
The Lehman Aggregate Bond Index is made up of a representative list
of government and corporate bonds as well as asset-backed
securities and mortgage-backed securities. The index is frequently
used as a general measure of bond market performance. However, the
securites used to create the index may not be representative of the
bonds held in the Income Portfolio.
Your investment and return value fluctuate so that your
accumulation units, when redeemed, may be worth more or less than
their original cost. Past performance is no guarantee of future
results. The above chart does not reflect expenses that apply to
the subaccounts or the policies.
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PAGE 10
To our policyowners
Money Market Portfolio
(Photo of) Gregg Syverson, Portfolio manager
From the portfolio manager
Short-term interest rates rose meaningfully for the first time in a
few years. Almost all of the increase came late in the fiscal year
and pushed the yield on the portfolio to just over 3% at the end of
April. The net asset value remained at $1 per share. (An
investment in the portfolio is neither insured nor guaranteed by
the U.S. government, and there can be no assurance that the
portfolio will be able to maintain a stable net asset value of $1
per share.)
During most of the period, short-term interest rates were quite
stable. For example, the discount rate (the interest rate banks
are charged on loans from the Federal Reserve) stayed at 3% from
May 1993 through January 1994. Because returns on securities in
which the portfolio invests closely track the discount rate, the
portfolio's yield changed only slightly.
A new interest-rate trend began in early February, when the Federal
Reserve Board started raising short-term rates to slow down
economic forces perceived as likely to lead to higher inflation.
That Fed action was followed by two additional rate increases
before the end of April. We were able to take relatively quick
advantage of the rate trend because we had kept the average
maturity of the portfolio fairly short. This allowed us to
reinvest money soon after rates began to rise, thereby boosting the
yield on the portfolio.
We expect to see short-term rates move higher as 1994 progresses.
As for the portfolio, we will invest more in corporate securities
in order to further enhance the yield. In addition, we will keep
maturities short, which should help us realize the higher yields
more quickly.
Gregg Syverson
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PAGE 11
To our policyowners
Managed Portfolio
(Photo of) Deborah L. Pederson, Portfolio manager
(Photo of) Kurt Winters, Portfolio manager
From the portfolio managers
A volatile environment prevailed in both the stock and bond markets
during the past fiscal year. Nevertheless, our balanced portfolio
of stocks and bonds generated a double-digit return for the fiscal
year.
Overall, the year was a positive one on the fixed-income side of
the portfolio, even though a rise in interest rates had an
extremely negative effect on the bond market during the last two
months of the fiscal year.
During the first half of the fiscal year, we took advantage of
declining interest rates by emphasizing longer-maturity securities,
primarily corporate and U.S. Treasury bonds. Because longer-
maturity bonds appreciate the most when rates fall, the portfolio
substantially benefitted from this strategy.
Interest rates began moving sharply higher in early February,
however, driving bond prices down through the end of the fiscal
year. To temper the effect of the trend, we scaled back our
"longer" securities in favor of shorter-maturity issues. In
addition, we added to our holdings of high-yield corporate bonds,
whose high income level allows them to perform relatively well in a
rising-interest-rate environment.
We also have been adding selectively to our holdings of mortgage-
backed securities. Overall, we plan to maintain a more defensive
posture until we see signs of interest-rate stability.
The stock market performed pretty well during the first several
months of the fiscal year, then followed the bond market down from
February through April. The portfolio's best gains came from our
holdings in the technology (such as computer software and
networking) and financially/economically sensitive (such as autos
and construction machinery) sectors. Foreign stocks, which
currently comprise about 12 percent of our stock holdings, also
provided excellent returns during 1993, with Mexico and Hong Kong
leading the way.
As for changes, we gradually increased the stock portion of the
portfolio -- to where it now comprises about two-thirds of the
assets. This reflects our belief that stocks are in a better
position than bonds to gain ground during the summer and fall.
Deborah L. Pederson
Kurt Winters
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PAGE 12
Your portfolio's ten largest holdings
Managed Portfolio
The ten holdings listed here make up 10.08% of the portfolio's net
assets
<TABLE>
<CAPTION>
Percent Value
(of portfolio's net assets) (as of April 30, 1994)
<S> <C> <C>
Bonds
U.S. Treasury Notes
6.375%, 06-30-97 1.25% $2,010,820
Common stocks
Ramsay-HMO 1.08 1,736,506
Operates medical service centers
Willamette Industries 1.00 1,601,250
Manufactures wood and paper products
Wabash National 0.99 1,592,500
Manufactures and markets truck trailers
LIN Broadcasting 0.99 1,586,250
TV broadcasting and cellular telephones
Nations Bank 0.98 1,567,500
Commercial banking
Cyprus Minerals 0.96 1,546,875
Mineral resources exploring and mining
Intel 0.95 1,525,000
Semiconductor memory circuits
Mutual Risk Management 0.94 1,519,375
Provides risk management services
Giddings & Lewis 0.94 1,515,000
Manufactures automated machine tools
Excludes short-term securities.
</TABLE>
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PAGE 13
Your portfolio's long-term performance
Managed Portfolio
How your $10,000 has grown in Managed Portfolio
S&P 500 x
x $29,042
Managed Portfolio
$20,000
x
Lipper Balanced
x Fund Index
$10,000
1/20/86 `86 `87 `88 `90 `91 `92 `93 `94
Average annual total return
(as of Apr. 30, 1994)
Since
1 year 5 years 1/20/86
+13.30% +16.91% +13.76%
On the chart above you can see how the portfolio's total return
compared to two widely cited performance indexes, the S&P 500 and
the Lipper Balanced Fund Index.
Standard & Poor's Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
Lipper Balanced Fund Index, published by Lipper Analytical
Services, Inc., includes 10 funds that are generally similar to the
fund, although some funds in the index may have somewhat different
investment policies or objectives.
Your investment and return value fluctuate so that your
accumulation units, when redeemed, may be worth more or less than
their original cost. Past performance is no guarantee of future
results. The above chart does not reflect expenses that apply to
the subaccounts or the policies.
<PAGE>
PAGE 14
To our policyowners
Government Securities Portfolio
(Photo of) James W. Snyder, Portfolio manager
From the portfolio managers
A dramatic decline in the bond market during the final three months
of the fiscal year erased the portfolio's previous gains, resulting
in an essentially flat performance for the 12 months.
Except for last October, when interest rates rose briefly, the
investment environment for bonds remained positive during the first
several months of the fiscal year. A moderately improving economy
and a low rate of inflation set the stage for a further decline in
long-term interest rates. Because falling rates automatically
increase bond values, the decline enhanced the portfolio's total
return (which includes price appreciation on the securities plus
the interest income they pay).
Based on our anticipation of that rate trend, we positioned the
portfolio with a longer-than-average maturity level. Because bonds
with longer maturities benefit the most from a rate drop, the
portfolio was especially well-rewarded by that trend. In keeping
with the portfolio's investment policy, the credit quality of our
investments remained at the highest level.
The bond market did a turn-around beginning in early February,
however, when the Federal Reserve began raising interest rates to
head off a possible increase in the inflation rate. Because bond
prices automatically fall when rates rise, the bond market sold off
sharply. The rate rise and market decline continued through April,
the end of the fiscal year. We responded to the trend by lowering
the average maturity of the portfolio, which helped temper the
effect of the decline on the portfolio's performance.
We are maintaining this more-defensive structure in the new fiscal
year. This should allow us to generate a reasonable return in the
months ahead, while providing some protection against ongoing
market volatility.
James W. Snyder
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PAGE 15
Your portfolio's long-term performance
Government Securities Portfolio
How your $10,000 has grown in Government Securities Portfolio
x
$17,983
Government
x Securities Portfolio
x Merrill Lynch 1-3 yr.
$10,000 Government Index
1/20/86 `86 `87 `88 `90 `91 `92 `93 `94
Average annual total return
(as of Apr. 30, 1994)
Since
1 year 5 years 1/20/86
+0.16% +9.39% +7.27%
On the chart above you can see how the portfolio's total return
compared to a widely cited performance index, the Merril Lynch 1-3
year Government Index.
Merrill Lynch 1-3 year Government Index is an unmanaged list of all
treasury and agency securities. The index is used here as a
general measure of performance. However, the securites used to
create the index may not be representative of the debt securities
held in the Government Securities Portfolio.
Your investment and return value fluctuate so that your
accumulation units, when redeemed, may be worth more or less than
their original cost. Past performance is no guarantee of future
results. The above chart does not reflect expenses that apply to
the subaccounts or the policies.
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PAGE 16
Independent Auditors' Report
The board of directors and shareholders
IDS Life Series Fund, Inc.
We have audited the accompanying statements of assets and
liabilities, including the schedules of investments in securities,
of the Equity, Income, Money Market, Managed and Government
Securities Portfolios of IDS Life Series Fund, Inc. at April 30,
1994, and the related statements of operations for the year then
ended and the statements of changes in net assets for each of the
years in the two-year period ended April 30, 1994, and the
financial highlights for each of the years in the eight-year period
ended April 30, 1994 and the period from January 20, 1986
(commencement of operations) to April 30, 1986. These financial
statements and the financial highlights are the responsibility of
the fund's management. Our responsibility is to express an opinion
on these financial statements and the financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Investment securities held in custody are confirmed to
us by the custodian. As to securities purchased and sold but not
received or delivered, we request confirmations from brokers, and
where replies are not received, we carry out other appropriate
auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of the Equity, Income, Money Market, Managed and
Government Securities Portfolios of IDS Life Series Fund, Inc. at
April 30, 1994 and the results of their operations for the year
then ended and the changes in their net assets for each of the
years in the two-year period ended April 30, 1994, and the
financial highlights for the periods stated in the first paragraph
above, in conformity with generally accepted accounting principles.
KPMG Peat Marwick
Minneapolis, Minnesota
June 3, 1994
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PAGE 17
<TABLE>
<CAPTION>
Statements of assets and liabilities
IDS Life Series Fund, Inc.
April 30, 1994
Assets Equity Income Money Managed Government
Portfolio Portfolio Market Portfolio Securities
Portfolio Portfolio
<S> <C> <C> <C> <C> <C>
Investments in securities,
at value (Note 1)(identified
cost: $136,297,503; $33,297,187;
$9,268,312; $158,281,078 and
$10,806,686, respectively) $152,178,261 $33,062,888 $9,268,312 $160,676,958 $10,954,485
Cash in bank on demand deposit 355,669 70,097 298,835 419,602 88,217
Receivable for investment securities
sold 1,044,614 99,587 - 5,362,676 -
Dividends and accrued interest
receivable 89,605 509,589 - 814,021 173,492
Receivable for forward foreign
currency contracts held, at value
(Notes 1 and 4) - - - 1,319,789 -
Receivable (for capital stock sold) from:
IDS Life subaccounts 14,282,270 223,490 21,886 14,469,986 142,709
IDS Life of New York
subaccounts 1,041,045 12,078 592 1,060,450 6,726
Total assets 168,991,464 33,977,729 9,589,625 184,123,482 11,365,629
Liabilities
Dividends payable to shareholders
(Note 1) 15,450,559 177,083 21,783 15,559,612 158,728
Payable for investment securities
purchased 1,568,272 - - 6,410,152 -
Accrued investment management
and services fee 82,868 18,597 3,774 87,519 6,150
Payable for forward foreign
currency contracts held, at value
(Notes 1 and 4) - - - 1,325,729 -
Payable (for capital stock redeemed) to:
IDS Life subaccounts 380 206 3,955 2,387 9,181
IDS Life of New York
subaccounts - 3,881 572 - 4,024
Other accrued expenses 29,222 8,034 2,111 31,883 2,695
Total liabilities 17,131,301 207,801 32,195 23,417,282 180,778
Net assets applicable to
outstanding capital stock $151,860,163 $33,769,928 $9,557,430 $160,706,200 $11,184,851
Represented by
Capital stock - authorized
10,000,000,000 shares of $.001
par value: outstanding, 8,391,259;
3,476,335; 9,557,747; 11,604,807 and
1,132,254 shares, respectively $ 8,391 $ 3,476 $ 9,558 $ 11,605 $ 1,132
Additional paid-in capital 135,973,037 34,392,780 9,548,071 158,297,800 11,036,423
Accumulated net realized gain (loss)
on investments 3,610 (400,068) (199) (1,409) -
Undistributed net investment income (5,633) 8,039 - (963) (503)
Unrealized appreciation
(depreciation) of investments 15,880,758 (234,299) - 2,396,349 147,799
Total - representing net assets
applicable to outstanding capital
stock $151,860,163 $33,769,928 $9,557,430 $160,706,200 $11,184,851
Net asset value per share of
outstanding capital stock $ 18.10 $ 9.71 $ 1.00 $ 13.85 $ 9.88
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 18
<TABLE>
<CAPTION>
Statements of operations
IDS Life Series Fund, Inc
Year ended April 30, 1994
Investment income Equity Income Money Managed Government
Portfolio Portfolio Market Portfolio Securities
Portfolio Portfolio
<S> <C> <C> <C> <C> <C>
Income:
Dividends (net of foreign taxes
withheld of $381 and $29,394 for
Equity Portfolio and Managed
Portfolio, respectively) $ 140,803 $ 20,720 $ - $ 895,768 $ -
Interest 1,174,754 2,162,680 264,800 3,861,027 690,375
Total income 1,315,557 2,183,400 264,800 4,756,795 690,375
Expenses (Note 2):
Investment management
and services fee 850,524 199,578 41,168 920,594 75,428
Custodial fees 25,491 11,098 8,675 46,604 5,205
Audit fees 10,500 7,250 6,000 12,500 6,750
Registration fees 7,554 1,783 621 8,304 787
Directors fees 4,526 1,068 333 5,391 454
Printing and postage 15,790 6,026 1,701 19,931 2,365
Other 2,039 1,286 362 5,920 444
Total expenses 916,424 228,089 58,860 1,019,244 91,433
Less expenses reimbursed by
IDS Life - - (9,459) - (5,230)
Total expenses - net 916,424 228,089 49,401 1,019,244 86,203
Investment income - net 399,133 1,955,311 215,399 3,737,551 604,172
Realized and unrealized gain (loss) on investments - net
Realized gain (loss) on security
transactions (Note 3) 15,326,818 (52,946) (97) 14,561,310 112,301
Realized gain on closed option
contracts written (Note 5) - - - 106,207 -
Realized gain on closed futures
contracts (Note 6) - - - 4,774 -
Net realized gain (loss) on
investments 15,326,818 (52,946) (97) 14,672,291 112,301
Net change in unrealized appreciation
or depreciation of investments 2,153,291 (1,813,728) - (4,972,356) (750,136)
Net gain (loss) on investments 17,480,109 (1,866,674) (97) 9,699,935 (637,835)
Net increase (decrease) in net assets
resulting from operations $17,879,242 $ 88,637 $ 215,302 $ 13,437,486 $ (33,663)
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 19
<TABLE>
<CAPTION>
Statements of changes in net assets
IDS Life Series Fund, Inc.
Year ended April 30,
Equity Portfolio Income Portfolio
Operations and distributions 1994 1993 1994 1993
<S> <C> <C> <C> <C>
Investment income - net $ 399,133 $ 154,331 $ 1,955,311 $ 1,495,755
Net realized gain (loss) on investments 15,326,818 2,737,471 (52,946) 307,531
Net change in unrealized appreciation or
depreciation of investments 2,153,291 2,951,801 (1,813,728) 1,257,080
Net increase in net assets resulting from operations 17,879,242 5,843,603 88,637 3,060,366
Distributions to shareholders from:
Net investment income (399,133) (154,331) (1,955,311) (1,519,065)
Net realized gain on investments (15,323,208) (2,737,471) - -
Total distributions (15,722,341) (2,891,802) (1,955,311) (1,519,065)
Capital share transactions (Note 7)
Proceeds from sales 49,951,411 29,951,771 13,258,320 5,419,851
Reinvested distributions at net asset value 15,722,341 2,891,802 1,955,311 1,519,065
Payments for redemptions (3,712,328) (3,318,523) (2,218,371) (2,145,208)
Increase (decrease) in net assets from capital
share transactions 61,961,424 29,525,050 12,995,260 4,793,708
Total increase (decrease) in net assets 64,118,325 32,476,851 11,128,586 6,335,009
Net assets at beginning of year 87,741,838 55,264,987 22,641,342 16,306,333
Net assets at end of year $151,860,163 $87,741,838 $33,769,928 $22,641,342
Undistributed (excess of distributions over)
net investment income $ (5,633) $ (5,633) $ (8,039) $ (8,039)
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 20
<TABLE>
<CAPTION>
Money Market Portfolio Managed Portfolio Government Securities
Portfolio
1994 1993 1994 1993 1994 1993
<C> <C> <C> <C> <C> <C>
$ 215,399 $ 282,902 $ 3,737,551 $ 2,687,436 $ 604,172 $ 539,008
(97) 274 14,672,291 7,640,740 112,301 81,544
- - (4,972,356) 970,187 (750,136) 712,823
215,302 283,176 13,437,486 11,298,363 (33,663) 1,333,375
(215,399) (282,902) (3,765,550) (2,687,506) (604,172) (539,008)
- - (14,672,291) (7,613,049) (112,301) (81,544)
(215,399) (282,902) (18,437,841) (10,300,555) (716,473) (620,552)
5,854,599 2,908,833 51,937,576 20,265,865 3,250,828 1,836,105
215,399 282,902 18,437,841 10,300,555 716,473 620,552
(4,693,099) (4,782,005) (4,807,830) (3,791,708) (1,651,297) (1,403,259)
1,376,899 (1,590,270) 65,567,587 26,774,712 2,316,004 1,053,398
1,376,802 (1,589,996) 60,567,232 27,772,520 1,565,868 1,766,221
8,180,628 9,770,624 100,138,968 72,366,448 9,618,983 7,852,762
$9,557,430 $8,180,628 $160,706,200 $100,138,968 $11,184,851 $9,618,983
$ - $ - $ (963) $ 24,741 $ (503) $ (418)
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 21
Notes to financial statements
1. Summary of significant accounting policies
The Fund is registered under the Investment Company Act of 1940, as
amended, (the 1940 Act), as a diversified, open- end management
investment company. Shares of each portfolio of the Fund are sold
to IDS Life Insurance Company (IDS Life) or IDS Life Insurance
Company of New York subaccounts in connection with the sale of
variable insurance contracts.
The significant accounting policies followed by the Fund are
summarized as follows:
Valuation of securities
All securities are valued at the close of each business day.
Securities, other than bonds, traded on national securities
exchanges or included in the NASDAQ National Market System, are
valued at the last quoted sales price; securities traded in the
over-the-counter market and securities for which a last quoted
sales price is not readily available are valued at the mean of the
closing bid and asking prices; and bonds and other 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 in the Equity,
Income, Managed and Government Securities Portfolios 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.
Pursuant to Rule 2a-7 of the 1940 Act, all securities in the Money
Market Portfolio are valued daily at amortized cost, which
approximates market value, in order to maintain a constant net
asset value of $1 per share.
Option transactions
In order to produce incremental earnings, protect gains, and
facilitate buying and selling of securities for investment
purposes, the Equity, Managed and Government Securities Portfolios
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 portfolio
gives up the opportunity of profit if the market price of the
security increases. The risk in writing a put option is that the
portfolios 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 portfolios pay a premium whether or not the
option is exercised. The portfolios also have the additional risk
of not being able to enter into a closing transaction if a liquid
secondary market does not exist. The portfolios also may write
over-the-counter options where the completion of the obligation is
dependent upon the credit standing of the other party.
Option contracts are valued daily at the closing prices on their
primary exchanges and unrealized appreciation or depreciation is
recorded. The portfolios will realize a gain or loss upon
expiration or closing of the option transaction. When an option is
<PAGE>
PAGE 22
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.
Future transactions
In order to gain exposure to or protect itself from changes in the
market, the Income, Managed and Government Securities Portfolios
may buy and sell stock index and interest rate future contracts.
Risks of entering into future 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 portfolios are 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 portfolios
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 portfolios recognize a realized gain or loss when
the contract is closed or expires.
Foreign currency translations and
forward 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. It is not practicable to
identify that portion of realized and unrealized gain (loss)
arising from changes in the exchange rates from the portion arising
from changes in the market value of investments.
The Equity, Income and Managed Portfolios also 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 portfolios and the resulting
unrealized appreciation or depreciation are determined using
foreign currency exchange rates from an independent pricing
service. The portfolios are subject to the credit risk that the
other party will not complete the obligations of the contract.
Illiquid securities
At April 30, 1994, investments in securities for Income and Managed
Portfolios included issues that are illiquid. The portfolios
currently limit 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 April 30, 1994 was $47,750
and $1,684,000, which represents 0.1% and 1.0% of net assets for
the Income and Managed Portfolios, respectively. Pursuant to
guidelines adopted by the Board of Directors, certain unregistered
securities are determined to be liquid and are not included in the
10% limitation specified above.
<PAGE>
PAGE 23
Federal income taxes
Since the Fund's policy is to comply with all requirements of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to shareholders, no
provision for income taxes is required. Each portfolio is treated
as a separate entity for federal income tax purposes.
Net investment income (loss) and net realized gains (losses) differ
for financial statement and tax purposes primarily because of wash
sale transactions, foreign currency exchange rates, and the timing
and amount of market discount recognized as ordinary income. 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) are recorded by the portfolios.
On the statements of assets and liabilities, as a result of
permanent book-to-tax differences, accumulated net realized gain
(loss) and undistributed net investment income have been increased
(decreased), resulting in net reclassification adjustments to
additional paid-in-capital by the following:
Managed Government
Portfolio Securities
Portfolio
___________________________________________________________________
Accumulated net realized gain (loss) $1,409 $ -
Undistributed net investment income 2,295 (85)
___________________________________________________________________
Additional paid-in-capital reduction (increase) $3,704 $(85)
Dividends to shareholders
At April 30, 1994, dividends were declared of $2.05 per share for
Equity, $.05 for Income, $.002 for Money Market, $1.48 for Managed
and $.14 for Government Securities Portfolio and were payable May
1, 1994. Distributions to shareholders are recorded as of the
close of business on the record date and are payable on the first
business day following the record date. Dividends from net
investment income are declared daily and distributed monthly for
the Money Market, Income and Government Securities Portfolios and
declared and distributed quarterly for the Equity and Managed
Portfolios. Capital gain distributions (if any) will be made
annually. However, additional capital gain distributions may be
made periodically during the fiscal year in order to comply with
the Internal Revenue Code as applicable to regulated investment
companies.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Dividend income is recognized on the
ex-dividend date and interest income, including level-yield
amortization of premium and discount, is accrued daily.
<PAGE>
PAGE 24
2. Investment management and services agreement
The Fund has an Investment Management and Services Agreement with
IDS Life. For its services, IDS Life is paid a fee based on the
aggregate average daily net assets of each of the portfolios. The
fee is 0.7% on an annual basis for the Equity, Income, Managed and
Government Securities Portfolios. For Money Market Portfolio the
fee is 0.5% on an annual basis.
IDS Life and IDS Financial Corporation Inc. (IDS) have an
Investment Advisory Agreement which calls for IDS Life to pay IDS
a fee for investment advice about the fund's portfolios. The fee
paid by IDS Life is 0.25% of the Fund's average daily net assets
for the year.
In addition to paying its own management fee, each portfolio also
pays its taxes, brokerage commissions and nonadvisory expenses.
Expenses that relate to a particular portfolio, such as custodian
fees and registration fees for shares, are paid by that portfolio.
Other expenses are allocated to the portfolios in an equitable
manner as determined by the Fund's board. Each portfolio also pays
custodian fees to IDS Trust Company, an affiliate of IDS Life.
The Investment Management and Services Agreement provides that IDS
Life will reimburse the portfolio, if in any year the aggregate
ordinary operating expenses of any portfolio exceed the most
restrictive expense limitations then in effect under any state
securities law or the regulations thereunder. However, commencing
April 5, 1989, IDS Life has voluntarily agreed to reimburse each
portfolio for operating expenses, excluding the investment
management and services fees, which exceed 0.1% on an annual basis
of average daily net assets of each portfolio.
3. Securities transactions
For the year ended April 30, 1994, cost of purchases and proceeds
from sales of securities aggregated $40,729,585 and $39,540,499 for
Money Market Portfolio; cost of purchases and proceeds from sales
of securities (other than short-term obligations) aggregated
$124,462,243 and $94,054,186 for Equity, $17,654,109 and
$15,448,897 for Income, $171,806,941 and $126,981,089 for Managed
and $3,187,944 and $3,384,074 for Government Securities Portfolios.
Realized gains and losses are determined on an identified cost
basis.
Brokerage commissions paid to brokers affiliated with IDS Life were
$10,846 and $13,882 for Equity Portfolio and Managed Portfolio,
respectively, for the year ended April 30, 1994.
4. Forward foreign currency contracts
At April 30, 1994, Managed Portfolio had entered into forward
foreign currency exchange contracts that obligate the portfolio to
deliver currencies at a specified future date. The terms of the
open contracts are as follows:
<PAGE>
PAGE 25
<TABLE>
<CAPTION>
U.S. Dollar Value U.S. Dollar Value
Currency to as of Currency to as of
Exchange date be delivered April 30, 1994 be received April 30, 1994
__________________________________________________________________________________
<S> <C> <C> <C> <C>
May 2, 1994 395,125 $ 286,043 286,800 $ 286,800
Canadian Dollar U.S. Dollar
May 2-5, 1994 1,728,998 1,039,686 1,032,989 1,032,989
Deutschemark U.S. Dollar
$1,325,729 $1,319,789
</TABLE>
5. Options contracts written
The number of contracts and premium amounts associated with call
option contracts written by Managed Portfolio during the year ended
April 30, 1994, is as follows:
Contracts Premium
________________________________________________________
Balance April 30, 1993 - $ -
Opened 530 325,699
Closed (530) (325,699)
________________________________________________________
Balance April 30, 1994 - $ -
6. Futures contracts
Investments in securities at April 30, 1994 for Managed Portfolio
include securities valued at $502,700 that were pledged to cover
initial margin deposits on five June U.S. Treasury Bond futures
contracts sold. The market value of the futures contracts as of
April 30, 1994 was $523,438. The unrealized appreciation of $469
on these contracts is included in the accompanying financial
statements.
7. Capital share transactions
Transactions in shares of each Portfolio for the years ended April
30, 1994, and 1993 were as follows:
<PAGE>
PAGE 26
<TABLE>
<CAPTION>
Number of shares: Year ended April 30, 1994
Money Government
Equity Income Market Managed Securities
Portfolio Portfolio Portfolio Portfolio Portfolio
____________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Shares at beginning of year 5,202,534 2,222,158 8,180,775 7,237,215 912,972
____________________________________________________________________________________________________
Sold 2,513,413 1,279,899 5,854,806 3,372,853 306,174
Issued for reinvested distributions 872,481 189,664 215,404 1,316,899 68,402
Redeemed (197,169) (215,386) (4,693,238) (322,160) (155,294)
____________________________________________________________________________________________________
Net increase 3,188,725 1,254,177 1,376,972 4,367,592 219,282
____________________________________________________________________________________________________
Shares at end of year 8,391,259 3,476,335 9,557,747 11,604,807 1,132,254
____________________________________________________________________________________________________
Number of shares: Year ended April 30, 1993
Money Government
Equity Income Market Managed Securities
Portfolio Portfolio Portfolio Portfolio Portfolio
____________________________________________________________________________________________________
Shares at beginning of year 3,451,116 1,735,155 9,771,096 5,342,652 810,596
____________________________________________________________________________________________________
Sold 1,777,607 550,738 2,908,886 1,420,467 179,504
Issued for reinvested distributions 172,258 154,236 282,914 741,788 60,256
Redeemed (198,447) (217,971) (4,782,121) (267,692) (137,384)
____________________________________________________________________________________________________
Net increase (decrease) 1,751,418 487,003 (1,590,321) 1,894,563 102,376
____________________________________________________________________________________________________
Shares at end of year 5,202,534 2,222,158 8,180,775 7,237,215 912,972
____________________________________________________________________________________________________
</TABLE>
8. Tax loss carryforward
For federal income tax purposes, the Income Portfolio and Money
Market Portfolio had capital loss carryovers at April 30, 1994 of
$1,364 and $174, respectively, which, if not offset by subsequent
capital gains, will expire in 1997 through 2001. It is unlikely
the Board of Directors will authorize a distribution of any net
realized gain until the portfolio's capital loss carryover has been
offset or expires.
9. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on pages 5-9 of the prospectus.
<PAGE>
PAGE 27
Investments in securities
<TABLE>
<CAPTION>
IDS Life Series Fund, Inc.
April 30, 1994
Equity Portfolio
(Percentages represent value of investments compared to total net assets)
Common stocks (70.8%)
Issuer Shares Value(a)
<S> <C> <C>
Airlines (0.7%)
Mesa Airlines 75,000(b) $ 1,087,500
Automotive related (1.1%)
Automotive Industries 60,000(b) 1,605,000
Banks and savings & loans (1.3%)
Roosevelt Financial Group 40,000 1,885,000
Building materials (0.9%)
Clayton Homes 65,000(b) 1,389,375
Chemicals (0.1%)
GNI Group 65,000(b) 219,375
Computers & office equipment (12.3%)
Adobe Systems 40,000 1,070,000
American Management Systems 45,000(b) 911,250
BISYS Group 80,000(b) 1,450,000
Broadway & Seymour 160,000(b) 2,400,000
Compuware 50,000(b) 2,293,750
Informix 40,000(b) 655,000
Lotus Development 15,000(b) 971,250
Minnesota Education Computers 67,000(b) 619,750
NetFRAME Systems 50,000(b) 575,000
Parametric Technology 45,000(b) 1,282,500
Sanmina 45,000(b) 1,001,250
Serving Software 90,000(b) 680,625
Symantec 50,000(b) 793,750
Synopsys 20,000(b) 800,000
3Com 28,000(b) 1,646,750
Wall Data 24,000(b) 894,000
Xircom 30,000(b) 675,000
Total 18,719,875
Electronics (6.0%)
C-Cube Microsystems 10,000(b) 177,500
Cypress Semiconductor 40,000(b) 665,000
Gasonics Int'l 50,000(b) 718,750
Kent Electronics 24,000(b) 696,000
Maxim Integrated Products 15,000(b) 733,125
Medar 65,000(b) 845,000
Micro-Chip 40,500(b) 1,134,000
Standard Microsystems 100,000(b) 1,781,250
TriQuint Semiconductor 60,000(b) 600,000
Ultimate Electronics 70,000(b) 752,500
Zilog 30,000(b) 1,005,000
Total 9,108,125
Energy (0.9%)
Cross Timbers Oil 40,000 580,000
HS Resources 40,000(b) 790,000
Total 1,370,000
Energy equipment & services (0.7%)
Corrpro 60,000(b) 1,027,500
Financial services (6.8%)
ADVANTA Class A 50,000 1,925,000
Medaphis 100,000(b) 3,475,000
Mercury Finance 100,000 1,637,500
Mutual Risk Management 35,000 818,125
RFS Hotel Investors 60,000 990,000
Regional Acceptance 70,000(b) 875,000
Triad Guaranty 35,000(b) 542,500
Total 10,263,125<PAGE>
PAGE 28
Food (0.2%)
Tootsie Roll Industries 5,000 321,267
Foreign (3.9%)
BioChem Pharmaceutical 55,000(b) 492,725
Cato Corp 'A' 80,000 900,000
Danka Business Systems ADR 40,000 1,565,000
Ek Chor China Motorcycle 55,000 1,313,125
Petroleum Geo Services ADS 60,000(b) 900,000
Quimica Y Minera Chile ADR 25,000 787,500
Total 5,958,350
Furniture & appliances (0.5%)
Bombay 40,000(b) 770,000
Health care (3.9%)
Anesta 33,000(b) 272,250
IDEXX Laboratories 120,000(b) 3,960,000
Interpore Int'l 60,000(b) 585,000
ProCyte 30,000(b) 341,250
Viagene 45,000(b) 315,000
Zoll Medical 25,700(b) 456,175
Total 5,929,675
Health care services (3.0%)
Columbia Healthcare 25,000 1,059,375
Express Scripts 20,000(b) 1,000,000
Quantum Health Resources 33,000(b) 1,056,000
Renal Treatment Centers 70,000(b) 1,435,000
Total 4,550,375
Household products (0.3%)
Valence Technology 35,000(b) 393,750
Industrial machines & services (5.8%)
Airgas 36,700(b) 798,225
Arden Industrial Products 25,000(b) 300,000
Fastenal 70,000 2,240,000
Flair 38,000 731,500
Greenfield Industries 75,000 1,462,500
Int'l Imaging Materials 65,000(b) 1,015,625
KENETECH 45,000(b) 888,750
Matrix Services 80,000(b) 800,000
Triple S Plastics 40,000(b) 560,000
Total 8,796,600
Insurance (0.6%)
Coventry 20,000(b) 965,000
Leisure time & entertainment (3.6%)
Autotote 80,000(b) 1,470,000
Callaway Golf 33,000 1,307,625
Int'l Lottery 35,000(b) 385,000
Rio Hotel & Casino 120,000(b) 1,912,500
Score Board 40,000(b) 350,000
Total 5,425,125
Media (0.2%)
United Int'l Holdings 'A' 25,000(b) 331,250
Metals (1.4%)
Gilbralter Steel 70,000(b) 1,015,000
Steel Technologies 60,000 1,080,000
Total 2,095,000
Multi-industry (0.5%)
Career Horizon 38,000(b) 741,000
Restaurants (1.9%)
Promus 18,000(b) 657,000
Shoney's 55,000(b) 1,045,000
Starbucks 40,000(b) 1,190,000
Total 2,892,000
<PAGE>
PAGE 29
Retail (4.6%)
American Eagle Outfitters 43,000(b) 671,875
Consolidated Stores 80,000(b) 1,380,000
Department 56 60,000(b) 1,665,000
Home Shopping Network 60,000(b) 690,000
Musicland Stores 72,000(b) 1,539,000
PETsMART 43,000(b) 1,112,625
Total 7,058,500
Telecommunication equipment & services (6.2%)
Chipcom 25,000(b) 1,171,875
Cisco Systems 120,000(b) 3,637,500
Communications Central 60,000(b) 825,000
Int'l Cablecasting Technology 30,000(b) 652,500
InterVoice 50,000(b) 575,000
Transaction Network 52,000(b) 533,000
Vanguard Cellular Systems 35,000(b) 1,155,000
Wellfleet Communications 12,000(b) 886,500
Total 9,436,375
Textiles & apparel (2.3%)
Authentic Fitness 70,000(b) 980,000
Conso Products 65,000(b) 926,250
Donnkenny 70,800(b) 1,610,700
Total 3,516,950
Utilities - telephone (1.1%)
IDB Communications Group 100,800(b) 1,663,200
Total common stocks
(Cost: $91,605,511) $107,519,292
</TABLE>
<PAGE>
PAGE 30
<TABLE>
<CAPTION>
Short-term securities (29.4%)
Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
<S> <C> <C> <C>
U.S. government and agency (7.4%)
FFCB Disc Nt
05-02-94 3.32% $4,000,000 $4,000,000
05-12-94 3.56 535,000 534,367
FHLB Disc Nts, 06-10-94 3.17 1,600,000 1,591,000
FHLMC Disc Nts, 05-18-94 3.76 2,100,000 2,096,062
U.S. Treasury Bills, 07-28-94 3.19 3,000,000 2,968,950
Total U.S. government and agency
(Cost: $11,201,455) 11,190,379
Commercial paper (18.4%)
Banks and savings & loans (3.7%)
ABN Amro, 06-14-94 3.72 900,000 895,768
BBV Finance, 05-09-94 3.64 4,800,000 4,795,644
Total 5,691,412
Financial services (6.0%)
A.I. Credit, 05-20-94 3.13 1,800,000 1,795,900
Associates Corp, 05-20-94 3.75 3,100,000 3,093,542
Eiger Capital, 05-18-94 3.83 1,600,000(c) 1,596,944
Fleet Funding, 06-10-94 3.77 1,200,000(c) 1,194,875
GE Capital, 05-20-94 3.79 1,500,000 1,496,850
Total 9,178,111
Food (1.6%)
Campbell Soup, 05-11-94 3.61 1,400,000 1,398,460
Sara Lee, 05-18-94 3.78 1,000,000 998,115
Total 2,396,575
Foreign (1.7%)
Commerzbank U.S. Finance, 05-11-94 3.63 2,600,000 2,597,124
Industrial transportation (3.8%)
Consolidated Railways, 05-02-94 3.65 1,400,000 1,399,716
Norfolk Southern, 07-13-94 3.27 4,400,000(c) 4,362,050
Total 5,761,766
Retail (0.7%)
Dillard Investment, 05-11-94 3.77 1,000,000 998,848
Utilities - telephone (0.9%)
Bell South Telecom, 05-18-94 3.76 1,300,000 1,297,562
Total commercial paper
(Cost: $27,931,295) $27,921,398
Letters of credit (3.6%)
Bank America-Hyundai
07-20-94 3.30% $2,600,000 $2,575,482
07-26-94 3.28 2,000,000(c) 1,979,760
Chemical Bank, 07-08-94 3.25 1,000,000 991,950
Total letters of credit
(Cost:$5,559,242) 5,547,192
Total short-term securities
(Cost: $44,691,992) $44,658,969
Total investments in securities (100.2%)
(Cost: $136,297,503)(d) $152,178,261
<PAGE>
PAGE 31
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) Commercial paper sold within terms of a private placement memorandum, exempt from registration under section 4(2) ofthe
Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." These
securities have been determined to be liquid under guidelines established by the board of directors.
(d) At April 30, 1994, the cost of securities for federal income tax purposes was $136,450,317 and the aggregate gross
unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $21,602,895
Unrealized depreciation (5,874,951)
____________________________________________________________________________
Net unrealized appreciation $15,727,944
____________________________________________________________________________
</TABLE>
<PAGE>
PAGE 32
Investments in securities
<TABLE>
<CAPTION>
IDS Life Series Fund, Inc.
April 30, 1994
Income Portfolio
(Percentages represent value of investments compared to total net assets)
Bonds (64.4%)
Issuer Principal Value(a)
amount
<S> <C> <C>
Mortgage backed securities (1.6%)
FHLMC
7.55%, 05-15-20 $ 3,662 $ 3,662
8.00%, 06-15-20 185,000 184,671
FNMA, 8.00%, 01-25-21 349,536 345,932
Total 534,265
Aerospace & defense (0.5%)
AEC Acquisition Sr Sub, 10.00%, 12-01-03 100,000 95,875
Fairchild, 13.125%, 03-15-06 65,000 63,375
Total 159,250
Airlines (0.3%)
AMR, 9.50%, 05-15-01 100,000 105,125
Asset backed securities (0.9%)
Carco Auto, 7.875%, 03-15-98 300,000 308,466
Automotive (0.3%)
Exide Sr Nts, 10.75%, 12-15-02 100,000 104,000
Banks and savings & loans (5.8%)
Banca Comm Italy, 8.25%, 07-15-07 300,000 299,625
Bankers Trust Sub Deb, 7.50%, 01-15-02 300,000 298,500
Barclays NA Capital, 9.75%, 05-15-21 150,000 168,000
Chrysler Building NY, 9.125%, 05-01-99 40,000 43,550
Citicorp, 8.00%, 02-01-03 300,000 303,375
Corestates Capital, 9.375%, 04-15-03 200,000 221,000
First Chicago, 8.875%, 03-15-02 300,000 318,375
First Union, 8.875%, 10-01-03 100,000 93,500
Fleet Norstar Financial, 9.00%, 12-01-01 200,000 214,000
Total 1,959,925
Building materials (2.8%)
Magnetek, 10.75%, 11-15-98 100,000 103,000
Nortek, 9.875%, 03-01-04 200,000 182,000
Owens Corning Fiberglass, 9.375%,
06-01-12 100,000 105,000
Pulte, 7.00%, 12-15-03 300,000 272,625
Scotia Pacific Holding, 7.95%, 07-20-15 287,421 267,302
Total 929,927
Chemicals (1.6%,)
B.F. Goodrich, 9.625%, 07-01-01 150,000 159,750
G.I. Holdings Zero Coupon Sub Nts, 11.69%, 10-01-98 100,000(d,e) 59,875
Harris Chemical North America Sr Sub, 10.75%, 10-15-03 100,000 99,750
Praxair, 8.70%, 07-15-22 125,000 129,063
Uniroyal Chemical Sr Nts, 10.50%, 05-01-02 100,000 101,375
Total 549,813
Energy (2.5%)
BP North America, 9.50%, 01-01-98 60,000 65,325
Clark Oil
10.50%, 12-01-01 100,000 102,875
9.50%, 09-15-04 100,000 101,000
McDermott, 9.375%, 03-15-02 100,000 108,125
USX
9.80%, 07-01-01 150,000 160,688
9.375%, 05-15-22 300,000 300,000
Total 838,013
Energy equipment & services (0.3%)
<PAGE>
PAGE 33
Global Marine Sr Nts, 12.75%, 12-15-99 100,000 106,000
Financial services (5.5%)
Corporate Property Investors, 7.18%, 09-01-13 300,000(d) 277,500
Countrywide Funding, 8.42%, 03-01-99 300,000 313,125
Exxon Capital, 6.625%, 08-15-02 300,000 286,500
General Electric Capital Reset Nt, 8.65%, 05-01-18 200,000(g) 209,750
Goldman Sachs, 7.125%, 03-01-03 200,000(d) 191,250
Kearny (RE) LP Class B, 6.55%, 07-15-00 200,000 200,500
Kearny (RE) LP Class C, 7.70%, 07-15-01 100,000 101,000
Property Trust America, 7.50%, 02-15-14 300,000 274,125
Total 1,853,750
Food, beverages & tobacco (2.4%)
ARA Group Sr Sub Deb, 12.00%, 04-01-00 75,000 81,281
Chiquita Brands, 9.625%, 01-15-04 100,000 96,000
Di Giorgio, 12.00%, 02-15-03 100,000 100,000
Dr. Pepper/7Up Zero Coupon Cvt,
11.82%, 11-01-97 71,000(f) 53,783
RJR Nabisco, 8.625%, 12-01-02 300,000 267,750
Royal Crown Sr Nts, 9.75%, 08-01-00 100,000 95,875
Specialty Foods, 10.25%, 08-15-01 100,000(d) 96,875
Total 791,564
Foreign (10.0%)(b)
Alcan Aluminum (U.S. Dollar), 8.875%, 01-15-22 200,000 208,750
Banco National Com Ext (U.S. Dollar), 7.25%, 02-02-04 100,000 84,500
Canadian Pacific Forest (U.S. Dollar), 9.375%, 02-15-04 100,000(d) 94,375
Doman Industries (U.S. Dollar), 8.75%, 03-15-04 100,000 91,000
Guang Dong Enterprise (U.S. Dollar), 8.75%, 12-15-03 400,000(d) 368,500
Korean Electric Power (U.S. Dollar), 8.00%, 07-01-02 200,000 197,500
Korea Telecom (U.S. Dollar), 7.40%, 12-01-99 300,000 297,000
Noranda Forest (U.S. Dollar), 8.875%, 10-15-99 300,000 306,750
Peoples' Republic of China (U.S. Dollar), 6.50%, 02-17-04 400,000 349,000
Petroleos Mexicanos (U.S. Dollar), 8.625%, 12-01-23 300,000 249,750
Qantas Air (U.S. Dollar), 7.50%, 06-30-03 300,000(d) 282,750
Republic of Argentina (U.S. Dollar), 4.25%, 03-31-23 250,000 131,875
Republic of Columbia (U.S. Dollar), 7.25%, 02-23-04 200,000 182,750
Republic of Italy (U.S. Dollar), 6.875%, 09-27-23 300,000 258,000
WMC Finance USA (U.S. Dollar), 7.25%, 11-15-13 300,000 265,500
Total 3,368,000
Health care (1.0%)
Healthtrust, 10.75%, 05-01-02 100,000 103,250
Schering-Plough Zero Coupon, 7.44%, 12-02-96 300,000(d,e) 256,125
Total 359,375
Health care services (0.6%)
American Medical Int'l, 9.50%, 04-15-06 100,000 97,000
Hillhaven Sr Sub Nts, 10.125%, 09-01-01 100,000 98,875
Total 195,875
Household products (0.3%)
First Brands, 9.125%, 04-01-99 100,000 103,000
Industrial machines & services (0.9%)
Ingersoll-Rand, 8.25%, 11-01-96 30,000 31,238
Reliance Electric, 6.80%, 04-15-03 300,000 279,375
Total 310,613
Industrial transportation (0.5%)
Ryder Systems, 9.25%, 05-15-01 150,000 162,750
Insurance (1.4%)
Americo Life, 9.25%, 06-01-05 100,000 94,000
Leucadia National Sub Nts, 10.375%, 06-15-02 100,000 106,500
SunAmerica, 8.125%, 04-28-23 300,000 277,875
Total 478,375
Leisure time & entertainment (1.6%)
Bally's Park Place, 9.25%, 03-15-04 100,000 91,000
GB Property Funding 1st Mtge, 10.875%, 01-15-04 100,000 85,000
GNF Bally, 10.625%, 04-01-03 100,000 83,000
Lady Luck Gaming 1st Mtge, 10.50%, 02-01-11 100,000(d) 93,375
MGM Grand Hotel Finance, 12.00%, 05-01-02 100,000 108,875
Showboat 1st Mtge, 9.25%, 05-01-08 100,000 90,875
Total 552,125
<PAGE>
PAGE 34
Media (3.3%)
Ackerley Communications Sr Secured Nts, 10.75%, 10-01-03 100,000(d) 100,000
Adelphia Communications, 11.875%, 09-15-04 100,000 103,500
Allbritton Communications, 11.50%, 08-15-04 100,000 101,500
Cablevision Systems, 10.75%, 04-01-04 100,000 100,000
Continental Cablevision 8.875%, Sr Deb,
09-15-05 100,000 91,500
Continental Cablevision 11.00%, Sr Sub Deb,
06-01-07 100,000 103,500
Outdoor Systems Sr Nts, 10.75%, 08-15-03 100,000 98,500
Time Warner Entertainment, 8.375%, 07-15-33 250,000 225,937
Turner Broadcasting Sr Nts, 8.375%, 07-01-13 100,000 91,000
Viacom Int'l Sr Sub, 10.25%, 09-15-01 100,000 103,000
Total 1,118,437
Metals (1.0%)
Amax Sr Nts, 14.50%, 12-01-94 150,000 156,938
Kaiser Aluminum Sr Nts, 9.875%, 02-15-02 100,000 93,375
Magma Copper, 12.00%, 12-15-01 100,000 112,000
Total 362,313
Multi-industry (0.8%)
Coltec Industries, 9.75%, 04-01-00 100,000 101,500
Mark IV Industries, 8.75%, 04-01-03 100,000 93,750
Tally Industries Zero Coupon, 11.44%, 10-15-98 100,000(e) 59,875
Total 255,125
Natural gas (1.9%)
Coastal, 9.75%, 08-01-03 300,000 324,375
Southwest Gas, 9.75%, 06-15-02 100,000 108,375
Texas Gas Transmission, 9.625%, 07-15-97 100,000 103,750
Transcontinental Gas Pipeline, 8.875%,
09-15-02 100,000 101,750
Total 638,250
Paper & packaging (3.0%)
Chesapeake, 9.875%, 05-01-03 100,000 109,000
Container Corp America, 9.75%, 04-01-03 100,000 95,875
Federal Paper Board, 10.00%, 04-15-11 100,000 111,750
Int'l Paper, 5.125%, 11-15-12 85,000 62,156
Owens Illinois Sr Sub Nts, 11.00%, 12-01-03 150,000 160,500
Pope & Talbot, 8.375%, 06-01-13 300,000 286,125
Repap Wisconsin Sr Secured Nts, 9.25%, 02-01-02 100,000 93,375
Silgan Sr Sub Nts, 11.75%, 06-15-02 100,000 106,125
Total 1,024,906
Restaurants & lodging (0.8%)
Caesars World, 8.875%, 08-15-02 100,000 99,625
Family Restaurant Sr Nts, 9.75%, 02-01-02 100,000 93,000
John Q Hammons Hotel Sr Nts, 8.875%, 02-15-04 100,000 91,000
Total 283,625
Retail (3.3%)
Farm Fresh, 12.25%, 10-01-00 100,000 96,375
Food4Less Zero Coupon, 9.24%, 12-15-97 100,000(e) 67,000
Grand Union Sr Nts, 12.25%, 07-15-02 100,000 98,625
J.C. Penney, 9.05%, 03-01-01 150,000 163,687
Levitz Furniture Sr Nts, 12.375%, 04-15-97 100,000 106,000
Pathmark Stores, 9.625%, 05-01-03 100,000 92,875
Penn Traffic Sr Nts, 10.25%, 02-15-02 100,000 101,250
Penn Traffic, 9.625%, 04-15-05 100,000 94,875
Safeway Stores, 10.00%, 12-01-01 100,000 103,500
Service Merchandise, 9.00%, 12-15-04 100,000 92,000
Stop & Shop, 9.75%, 02-01-02 75,000 78,000
Total 1,094,187
Telecommunication equipment & services (0.6%)
MFS Communications Zero Coupon Sr Nts, 9.56%, 01-15-99 200,000(f) 114,750
Nextel Communications Zero Coupon Sr Nts, 9.98%, 02-15-99 150,000(f) 87,563
Total 202,313
Textiles & apparel (0.3%)
Dominion Textiles, 8.875%, 11-01-03 100,000 91,750
Utilities - electric (5.9%)
Arizona Public Service, 8.00%, 02-01-25 200,000 193,000
Carolina Power & Light, 8.125%, 11-01-03 13,530 13,936
<PAGE>
PAGE 35
Commonwealth Edison, 9.875%, 06-15-20 200,000 218,750
Houston Industries, 9.375%, 06-01-01 150,000 163,125
Long Island Lighting
9.00%, 11-01-22 100,000 96,375
9.625%, 07-01-24 200,000 205,250
Louisiana Power & Light,
10.30%, 01-02-05 100,000 105,625
Midland, 11.75%, 07-23-05 100,000 104,000
North Atlantic Energy 1st Mtge, 9.05%, 06-01-02 100,000 98,500
Northeast Utilities, 8.58%, 12-01-06 200,000 207,000
Pennsylvania Power & Light 1st Mtge, 9.25%, 10-01-19 100,000 108,125
Sithe Independence Funding, 9.00%, 12-30-13 100,000 101,200
Texas New Mexico Power 1st Mtge, 9.25%, 09-15-00 100,000 100,375
Texas Utilities Electric, 9.875%, 11-01-19 100,000 108,125
Texas Utilities 1st Mtge, 7.375%, 10-01-25 200,000 178,000
Total 2,001,386
Utilities - telephone (2.4%)
AT & T, 8.125%, 07-15-24 300,000 298,500
New England Tel & Tel, 6.375%, 09-01-08 40,000 35,300
New York Telephone, 9.375%, 07-15-31 150,000 169,875
Northwestern Bell, 4.375%, 03-01-03 50,000 40,062
Pacific Bell Telephone, 7.375%, 07-15-43 300,000 274,500
Total 818,237
Miscellaneous (0.3%)
Mosler, 11.00%, 04-15-03 100,000 92,250
Total bonds
(Cost: $21,996,207) $21,752,989
</TABLE>
<TABLE>
<CAPTION>
Preferred stocks (0.7%)
Issuer Shares Value(a)
<S> <C> <C>
First Chicago, $2.88, Cvt 500 $ 27,000
National Health Investors, $1.04, Cvt 2,000 51,500
Merry Land & Investments, $1.75 Cvt 1,000 30,250
Occidental Petroleum, $3.88, Cvt 1,000(c) 47,750
Public Service of New Hampshire, $2.65 3,500 90,563
Total preferred stocks
(Cost: $237,500) $247,063
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (32.8%)
Annualized Amount Value(a)
yield on payable at
date of maturity
Issuer purchase
<S> <C> <C> <C>
U.S. government agency (10.1%)
FHLB Disc Nts
05-26-94 3.69% $1,300,000 $ 1,296,545
06-03-94 3.64 200,000 199,213
FHLMC Disc Nts
05-23-94 3.53 800,000 798,201
05-23-94 3.71 700,000 698,344
FNMA Disc Nt, 05-23-94 3.67 400,000 399,065
Total 3,391,368
Commercial paper (22.7%)
ABN Amro, 06-14-94 3.72 1,600,000 1,592,477
Ciesco, 05-19-94 3.78 1,700,000 1,696,608
Consolidated Railway, 5-26-94 3.86 1,200,000 1,196,663
J.C. Penney Funding, 05-26-94 3.76 1,000,000 997,292
Sandoz, 06-30-94 3.83 600,000 595,722
USAA Capital, 06-13-94 3.75 1,600,000 1,592,706
Total 7,671,468
<PAGE>
PAGE 36
Total short-term securities
(Cost: $11,063,480) $11,062,836
Total investments in securities (97.9%)
(Cost: $33,297,187)(h) $33,062,888
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Foreign securities values are stated in U.S. dollars; principal amounts are denominated in the currency indicated.
(c) Identifies issues considered to be illiquid as to their marketability (see Note 1 to the financial statements). Information
concerning such security holdings at April 30,1994, is as follows:
<S> <C> <C>
Security Acquisition Purchase
date cost
Occidental Petroleum, $3.88, Cvt, 12-31-49 02-10-93 $ 50,000
(d) Represent securities sold under Rule 144A and are exempt from registration under the Securities Act of 1933, as amended.
These securities has been determined to be liquid under guidelines established by the board of directors.
(e) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition.
(f) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield from the date of
acquisition to interest reset date disclosed.
(g) Interest rate varies, rate shown is the effective rate on April 30, 1994.
(h) At April 30, 1994, the cost of securities for federal income tax purposes was $33,278,667 and the aggregate gross
unrealized appreciation and depreciation based on that cost was:
<S> <C>
Unrealized appreciation $ 561,145
Unrealized depreciation (776,924)
______________________________________________________________________
Net unrealized depreciation $ (215,779)
______________________________________________________________________
</TABLE>
<PAGE>
PAGE 37
<TABLE>
<CAPTION>
IDS Life Series Fund, Inc.
April 30, 1994
Money Market Portfolio
(Percentages represent value of investments compared to total net assets)
Short-term securities (97.0%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
<S> <C> <C> <C>
U.S. government and agency (22.7%)
FHLB Disc Nts,
06-03-94 3.64% $375,000 $ 373,721
06-10-94 3.17 900,000 896,792
FHLMC Disc Nts, 05-18-94 3.76 400,000 399,250
U.S. Treasury Bills, 07-28-94 3.19 500,000 496,119
Total U.S. government and agency
(Cost: $2,165,882) $2,165,882
Commercial paper (70.2%)
Banks and savings & loans (8.4%)
BBV Finance, 05-09-94 3.64 400,000 399,637
Commerzbank, 05-11-94 3.63 400,000 399,558
Total 799,195
Computers & office equipment (4.1%)
Pitney Bowes, 07-08-94 3.99 400,000 396,972
Electronics (4.7%)
Intel, 05-09-94 3.60 450,000 449,595
Financial services (11.5%)
Fleet Funding, 06-10-94 3.77 400,000(b) 398,292
GE Capital, 05-17-94 3.79 300,000 299,464
J.C. Penney Funding, 05-26-94 3.79 400,000 398,908
Total 1,096,664
Food (8.4%)
Campbell Soup, 05-11-94 3.61 400,000 399,560
CPC International, 05-06-94 3.74 400,000(b) 399,751
Total 799,311
Health care services (4.1%)
Sandoz, 06-30-94 3.83 400,000 397,424
Insurance (8.1%)
A.I. Credit, 05-20-94 3.13 400,000 399,311
Lincoln National, 05-23-94 3.82 375,000(b) 374,087
Total 773,398
Utilities - electric (4.2%)
Pacific Energy Fuel, 06-14-94 3.92 400,000 398,050
Utilities - telephone (8.3%)
Ameritech Capital, 06-23-94 3.95 400,000(b) 397,642
Bell South Capital, 06-10-94 3.73 400,000 398,310
Total 795,952
Miscellaneous (8.4%)
Ciesco, 05-23-94 3.76 400,000 399,042
Eiger Capital, 05-06-94 3.73 400,000(b) 399,752
Total 798,794
Total commercial paper
(Cost: $6,705,355) $6,705,355
Letters of credit (4.1%)
Bank America-Hyundai, 07-20-94 3.30 400,000 397,075
(Cost: $397,075)
<PAGE>
PAGE 38
Total investments in securities (97.0%)
(Cost: $9,268,312)(c) $9,268,312
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b)Commercial paper sold within terms of a private placement memorandum, exempt from registration under section 4(2) ofthe
Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors."
These securities have been determined to be liquid under guidelines established by the board of directors.
(c)At April 30, 1994, this cost also represents the cost of securities for federal income tax purposes.
</TABLE>
<PAGE>
PAGE 39
Investments in securities
<TABLE>
<CAPTION>
IDS Life Series Fund, Inc.
April 30, 1994
Managed Portfolio
(Percentages represent value of investments compared to total net assets)
Bonds (23.9%)
Issuer Principal Value(a)
amount
<S> <C> <C>
U.S. government obligations (1.3 %)
U.S. Treasury Notes, 6.375%, 06-30-97 $2,000,000(j) $ 2,010,820
Mortgage backed securities (0.9%)
FNMA Disc Nt, 7.00%, 10-25-16 1,129,917 1,026,417
FNMA Disc Nt, 6.50%, 12-25-23 255,461 177,313
Private Export Funding, 8.60%, 06-30-94 300,000 301,875
Total 1,505,605
Aerospace & defense (0.2%)
United Technology, 8.875%, 11-15-19 300,000 323,250
Airlines (0.3%)
Delta Airlines Sr Deb, 10.375%, 02-01-11 500,000 513,125
Asset backed obligations (0.2%)
Carco Auto, 7.875%, 03-15-98 250,000 257,055
Ford Credit, 8.75%, 10-16-95 21,326 21,345
Total 278,400
Automotive related (0.3%)
General Motors, 9.40%, 07-15-21 350,000 387,188
GMAC, 8.375%, 05-01-97 65,000 67,600
Total 454,788
Banks and savings & loans (0.5%)
Banca Comm Italy, 8.25%, 07-15-07 500,000 499,375
Chrysler Building NY, 9.125%, 05-01-99 85,000 92,544
First Union, 8.875%, 10-01-03 300,000 280,500
Total 872,419
Building materials (0.7%)
Georgia Pacific Credit Sensitive Nts,
9.95%, 06-15-02 250,000 272,500
Nortek, 9.875%, 03-01-04 400,000 364,000
Pulte, 7.00%, 12-15-03 500,000 454,375
Total 1,090,875
Chemicals (0.5%)
G.I. Holdings Zero Coupon Sub Nts, 11.69%, 10-01-98 1,000,000(d) 598,750
Harris Chemical North America Sr Sub, 10.75%, 10-15-03 250,000 249,375
Total 848,125
Electronics (0.3%)
Mosler, 11.00%, 04-15-03 500,000 461,250
Energy (1.8%)
BP North America, 9.50%, 01-01-98 140,000 152,425
Cross Timbers Oil Cvt, 5.25%, 11-01-03 1,250,000 1,085,937
Exxon Capital, 6.625%, 08-15-02 575,000 549,125
Standard Oil, 9.00%, 06-01-19 300,000 314,625
USX, 9.125%, 01-15-13 500,000 493,750
Union Oil Company of California, 9.25%, 02-01-03 250,000 271,875
Total 2,867,737
Financial services (1.5%)
American General Financial with
attached put, 8.125%, 08-15-09 150,000 157,500
Corporate Property Investors, 7.18%, 09-01-13 500,000(h) 462,500
GE Capital Reset Nt, 8.65%, 05-01-18 250,000(i) 262,188
Kearny (RE) LP Class B, 6.55%, 07-15-00 300,000 300,750
Kearny (RE) LP Class C, 7.70%, 07-15-01 150,000 151,500
Property Trust America, 7.50%, 02-15-14 750,000 685,312
Salomon, 6.75%, 01-15-06 500,000 450,000
Total 2,469,750
<PAGE>
PAGE 40
Food, beverages & tobacco (0.7%)
RJR Nabisco with attached put, 8.375%,
02-01-17 286,000 244,530
Royal Crown Sr Nts, 9.75%, 08-01-00 400,000 383,500
Specialty Foods, 10.25%, 08-15-01 400,000(h) 387,500
Total 1,015,530
Foreign (4.9%)(c)
Banco Nacional de Mexico (U.S. Dollar),
7.00%, 12-15-99 1,200,000(g) 1,320,000
BNCE (U.S. Dollar), 7.25%, 02-02-04 400,000 338,000
Canadian Pacific Forest (U.S. Dollar),
9.375%, 02-15-04 500,000(h) 471,875
Doman Industries (U.S. Dollar), 8.75%, 03-15-04 400,000 364,000
Gov't Trust Certificate Israel
(U.S. Dollar), 9.25%, 11-15-01 275,000 305,250
Guang Dong Enterprise (U.S. Dollar),
8.75%, 12-15-03 750,000(h) 690,937
IRSA (U.S. Dollar), 8.875%, 03-03-99 400,000(g) 364,000
KFW Int'l Finance (U.S. Dollar),
8.20%, 06-01-06 250,000 260,000
Noranda Forest (U.S. Dollar), 8.875%, 10-15-99 1,000,000 1,022,500
Peoples' Republic of China (U.S. Dollar),
6.50%, 02-17-04 750,000 654,375
Qantas Air (U.S. Dollar), 7.50%, 06-30-03 500,000(h) 471,250
Republic of Columbia (U.S. Dollar),
7.25%, 02-23-04 500,000 456,875
Republic of Italy (U.S. Dollar),
6.875%, 09-27-23 350,000 301,000
Rogers Cable System (Canadian Dollar),
6.986%, 01-15-14 600,000 390,922
U.K. Treasury (British Pound),
12.09%, 06-10-03 300,000 454,392
Total 7,865,376
Health care (0.8%)
Johnson & Johnson, 8.00%, 09-01-98 1,000,000 1,037,500
Schering-Plough Zero Coupon, 7.44%, 12-02-96 350,000(d,h) 298,813
Total 1,336,313
Health care services (0.3%)
Hillhaven Sr Nts, 10.125%, 09-01-01 500,000 494,375
Industrial machines & services (0.3%)
Ingersoll-Rand, 8.25%, 11-01-96 60,000 62,475
Reliance Electric, 6.80%, 04-15-03 500,000 465,625
Total 528,100
Insurance (0.5%)
Americo Life, 9.25%, 06-01-05 400,000 376,000
General American Life Sub Cap Nts,
7.625%, 01-15-24 500,000(h) 453,125
Total 829,125
Leisure time & entertainment (1.0%)
Bally's Park Place, 9.25%, 03-15-04 400,000 364,000
GB Property Funding 1st Mtge, 10.875%, 01-15-04 500,000 425,000
GNF Bally, 10.625%, 04-01-03 250,000 207,500
Lady Luck Gaming 1st Mtge, 10.50%, 02-01-01 400,000(h) 373,500
Showboat 1st Mtge, 9.25%, 05-01-08 250,000 227,187
Total 1,597,187
Media (2.3%)
Ackerley Communications Sr Secured Nts,
10.75%, 10-01-03 400,000(h) 400,000
Adelphia Communications, 9.50%, 02-15-04, Pay-in-kind 500,000(h) 455,000
Comcast Cvt, 1.125%, 04-15-07 3,000,000 1,252,500
Continental Cablevision Sr Deb, 8.875%, 09-15-05 250,000 228,750
Outdoor Systems Sr Nts, 10.75%, 08-15-03 400,000 394,000
Time Warner Entertainment, 8.375%, 07-15-33 500,000 451,875
Turner Broadcasting Sr Nts, 8.375%, 07-01-13 500,000 455,000
Total 3,637,125
Metals (0.2%)
Kaiser Aluminum Sr Nts, 9.875%, 02-15-02 400,000 373,500
Multi-industry (0.2%)
Mark IV Industries, 8.75%, 04-01-03 400,000 375,000
<PAGE>
PAGE 41
Paper & packaging (1.5%)
Container Corp America, 9.75%, 04-01-03 500,000 479,375
Federal Paper Board, 10.00%, 04-15-11 250,000 279,375
Int'l Paper, 5.125%, 11-15-12 250,000 182,812
Pope & Talbot, 8.375%, 06-01-13 400,000 381,500
Repap Wisconsin Sr Secured Nts, 9.25%, 02-01-02 400,000 373,500
Scotia Pacific Holding, 7.95%, 07-20-15 287,421 267,302
Stone Container Sr Nts, 9.875%, 02-01-01 500,000 465,000
Total 2,428,864
Restaurants & lodging (0.2%)
Family Restaurant Sr Nts, 9.75%, 02-01-02 400,000 372,000
Retail (0.7%)
Food4Less Zero Coupon Cvt, 9.30%, 12-15-97 300,000(e) 201,000
J.C. Penney, 9.05%, 03-01-01 200,000 218,250
Pathmark Stores, 9.625%, 05-01-03 400,000 371,500
Penn Traffic, 9.625%, 04-15-05 300,000 284,625
Total 1,075,375
Telecommunications equipment & services (0.6%)
MFS Communications Zero Coupon Sr Nts,
9.59%, 01-15-99 800,000(e) 459,000
Nextel Communications Zero Coupon Sr Nts,
9.98%, 02-15-99 750,000(e) 437,812
Total 896,812
Utilities - electric (0.6%)
Carolina Power & Light, 8.125%, 11-01-03 30,443 31,356
Pennsylvania Power & Light, 7.625%, 02-01-02 50,000 51,375
RGS Funding I & M Sale Lease-Back Obligation,
9.82%, 12-07-22 208,804 235,165
Sithe Independence Funding, 9.00%, 12-30-13 150,000 151,800
Texas New Mexico Power 1st Mtge, 9.25%, 09-15-00 400,000 401,500
Total 871,196
Utilities - telephone (0.6%)
GTE, 9.375%, 12-01-00 400,000 440,000
Mountain States Tel & Tel, 5.50%, 06-01-05 80,000 68,100
New England Tel & Tel, 6.375%, 09-01-08 70,000 61,775
New York Telephone, 4.875%, 01-01-06 130,000 102,375
Northwestern Bell, 4.375%, 03-01-03 85,000 68,106
Ohio Bell Telephone
5.00%, 02-01-06 250,000 199,375
5.375%, 03-01-07 65,000 52,325
Total 992,056
Total bonds
(Cost: $39,988,927) $38,384,078
</TABLE>
<TABLE>
<CAPTION>
Common stocks (60.4%)
Issuer Shares Value(a)
<S> <C> <C>
Automotive related (1.7%)
Masco Industries 70,000 $ 1,330,000
Simpson Industries 65,000 1,332,500
Total 2,662,500
Banks and savings & loans (2.5%)
Bank America 25,000 1,081,250
Nations Bank 30,000 1,567,500
Roosevelt Financial Group 30,000 1,413,750
Total 4,062,500
Building materials (1.8%)
MagneTek 95,000(b) 1,377,500
Willamette Industries 35,000 1,601,250
Total 2,978,750
<PAGE>
PAGE 42
Computers & office equipment (12.0%)
Adaptec 80,000(b) 1,260,000
Cisco Systems 45,000(b) 1,364,062
Gupta 75,000(b) 1,143,750
Informix 75,000(b) 1,228,125
Iomega 450,000(b) 1,068,750
Legent 45,000(b) 1,423,125
Parametric Technology 45,000(b) 1,282,500
Park Place 75,000(b) 1,293,750
Progress Software 30,000(b) 1,335,000
Sanmina 53,000(b) 1,179,250
Sterling Software 50,000(b) 1,462,500
SynOptics 70,000(b) 1,400,000
System Software 90,000 1,440,000
Walker Interactive 135,000(b) 1,215,000
Wall Data 35,000(b) 1,303,750
Total 19,399,562
Electronics (5.1%)
Amphenol 80,000(b) 1,410,000
Arrow Electronics 35,000(b) 1,321,250
GTI 120,000(b) 1,230,000
Intel 25,000 1,525,000
Micro-Chip 50,000(b) 1,400,000
TriQuint Semiconductor 125,000(b) 1,250,000
Total 8,136,250
Energy (2.6%)
HS Resources 75,000(b) 1,481,250
Parker & Parsley Petroleum 50,000 1,300,000
Triton Energy 45,000(b) 1,321,875
Total 4,103,125
Energy equipment & services (2.4%)
Dresser Industries 55,000 1,251,250
Input/Output 30,000(b) 1,410,000
Production Operators 45,000 1,215,000
Total 3,876,250
Financial services (3.5%)
Mutual Risk Management 65,000 1,519,375
National RE 50,000 1,375,000
RFS Hotel Investors 80,000 1,320,000
Travelers 40,000 1,390,000
Total 5,604,375
Foreign (11.6%)
Banca Pop Bergamo 2,100(b) 31,628
Banco Frances 50,000(b) 1,325,000
Castorama Dubois 10,000 1,434,600
Central Puerto 35,000 1,365,000
Comp Naviera Perez 130,000 1,300,000
Consorcio G ADR 85,000 1,094,375
Femsa Coke 45,000(b) 1,428,750
G-Simec 60,000(b) 1,207,500
Kimberly 70,000 1,325,170
Pfleiderer 447 162,619
Sceptre 140,000(b) 1,368,227
Serfin 60,000 1,320,000
T. Tolmex "B" 115,000 1,406,335
Tarragon Oil & Gas 100,000(b,h) 1,176,385
Telefonos de Mexico ADR 25,000 1,471,875
YPF 50,000 1,237,500
Total 18,654,964
Health care (0.8%)
Pyxis 60,000(b) 1,365,000
Health care services (3.7%)
Columbia Healthcare 35,000 1,483,125
Foundation Health 35,000(b) 1,373,750
Physician Corp of America 55,000(b) 1,323,438
Ramsay-HMO 31,717(b) 1,736,506
Total 5,916,819
Industrial machines & services (2.6%)
General Signal 40,000 1,310,000
Giddings & Lewis 60,000 1,515,000
IDEX 35,000(b) 1,330,000
Total 4,155,000
<PAGE>
PAGE 43
Industrial transportation (1.7%)
Trinity Industries 35,000 1,216,250
Wabash National 35,000 1,592,500
Total 2,808,750
Leisure time & entertainment (0.8%)
Sodak Gaming 85,000(b) 1,285,625
Metals (1.0%)
Cyprus Minerals 55,000 1,546,875
Multi-industry (2.4%)
Albany Int'l 65,000 1,243,125
Madeco 45,000 1,305,000
Tenneco 25,000 1,281,250
Total 3,829,375
Natural gas (0.7%)
Enron 40,000 1,185,000
Paper & packaging (0.8%)
Longview Fibre Wash 75,000 1,321,875
Restaurants & lodging (0.8%)
Shoney's 65,000(b) 1,235,000
Telecommunication equipment & services (1.9%)
InterVoice 125,000(b) 1,437,500
LIN Broadcasting 15,000(b) 1,586,250
Total 3,023,750
Total common stocks
(Cost: $93,591,135) $97,151,345
</TABLE>
<TABLE>
<CAPTION>
Preferred stocks (3.1%)
Issuer Shares Value(a)
<S> <C> <C>
Cointel Pride, 5.04% 20,000(b) $ 1,230,000
Hornbach Holdings, $9.36 1,000 992,182
Kenetech Pride, 1.67% Cvt 60,000(b) 1,215,000
National Health Investors, 8.50% Cvt 10,000 257,500
Snyder Oil, 6% Cvt 50,000 1,318,750
Total preferred stocks
(Cost: $4,565,045) $ 5,013,432
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (12.5%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
<S> <C> <C> <C>
U.S. government and agency (4.6%)
FHLMC Disc Nts, 05-23-94 3.53% $ 200,000 $ 199,550
FNMA Disc Nts, 05-23-94 3.67 5,000,000 4,988,308
U.S. Treasury Bills, 07-28-94 3.19 2,300,000 2,276,195
Total 7,464,053
Commercial paper (7.3%)
Associates Corp, 05-20-94 3.75 1,000,000 997,917
Consolidated Railway, 05-26-94 3.86 1,900,000 1,894,717
Fleet Funding, 06-10-94 3.77 1,000,000(f) 995,729
GE Capital, 05-20-94 3.79 3,800,000 3,792,020
Lincoln National, 05-23-94 3.82 1,400,000(f) 1,396,592
Metlife Funding, 05-18-94 3.76 2,600,000 2,595,125
Total 11,672,100
Bankers acceptance (0.6%)
Chemical Bank, 07-08-94 3.25 1,000,000 991,950
Total short-term securities
(Cost: $20,135,971) $ 20,128,103
<PAGE>
PAGE 44
Total investments in securities (100.1%)
(Cost: $158,281,078)(k) $160,676,958
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 securities values are stated in U.S. dollars; principal amounts are denominated in the currency indicated.
(d)For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition.
(e)For zero coupon bonds, the interest rate disclosed represents the annualized effective yield from the date of acquisition to
interest reset date disclosed.
(f)Commercial paper sold within terms of a private placement memorandum, exempt from registration under section 4(2) of
the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors."
These securities have been determined to be liquid under guidelines established by the board of directors.
(g)Identifies issues considered to be illiquid as to their marketability (see Note 1 to the financial statements).
Informationconcerning such security holdings as of April 30, 1994, is as follows:
Security Acquisition Purchase
date cost
________________________________________________________________________________
<S> <C> <C>
Banco Nacional de Mexico (U.S. Dollar),
7.00%, 12-15-99 02-04-93 to 04-20-94 $1,257,500
IRSA (U.S. Dollar), 8.875%, 03-03-99 02-17-94 395,664
(h)Represents security sold under Rule 144A and 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.
(i)Interest rate varies, rate shown is the effective rate on April 30, 1994.
(j)Partially pledged as initial deposit on the following open stock index futures purchase contracts (see Note 6 to the financial
statements):
Type of security Contracts
_______________________________________________________________________________
U.S. Treasury Bonds, June 1994 5
(k)At April 30, 1994, the cost of securities for federal income tax purposes was $158,804,399 and the aggregate gross
unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $10,892,440
Unrealized depreciation (9,019,881)
________________________________________________________________________________
Net unrealized appreciation $ 1,872,559
________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 45
<TABLE>
<CAPTION>
IDS Life Series Fund, Inc.
April 30, 1994
Government Securities Portfolio
(Percentages represent value of investments compared to total net assets)
Bonds (71.6%)
Issuer Principal Value (a)
amount
<S> <C> <C>
U.S. government obligations (70.5%)
U.S. Treasury Bonds
10.375%, 11-15-12 $ 750,000 $ 941,685
8.125%, 08-15-19 500,000 537,485
U.S. Treasury Notes
7.375%, 05-15-96 1,250,000 1,287,737
6.375%, 06-30-97 850,000 854,598
8.875%, 02-15-99 2,450,000 2,675,155
7.75%, 02-15-01 1,510,000 1,585,032
Total 7,881,692
Mortgage backed securities (1.1%)
GNMA, 8.00%, 05-15-17 131,010 130,683
Total bonds
(Cost: $7,864,576) $8,012,375
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (26.3%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
<S> <C> <C> <C>
U.S. government agencies
FHLMC Disc Nts
05-05-94 3.56% $ 350,000 $ 349,827
05-12-94 3.54 800,000 799,059
FHLB Disc Nts
05-11-94 3.67 200,000 199,776
06-08-94 3.79 1,600,000 1,593,448
Total short-term securities
(Cost: $2,942,110) $ 2,942,110
Total investments in securities (97.9%)
(Cost: $10,806,686)(b) $10,954,485
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b)At April 30, 1994, the cost of securities for federal income tax purposes was $10,773,362 and the aggregate gross
unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $224,795
Unrealized depreciation (43,672)
_________________________________________________________________________
Net unrealized appreciation $181,123
________________________________________________________________________
</TABLE>
<PAGE>
PAGE 46
Your IDS financial planner:
AN AMERICAN EXPRESS COMPANY
1894 IDS 1994
A CENTURY OF INVESTING IN THE FUTURE
IDS Life Series Fund, Inc.
IDS Tower 10
Minneapolis, Minnesota 55440-0010
<PAGE>
PAGE 47
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in blue strip at the top
of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
