IDS Life Series Fund, Inc.
1996 Semiannual Report
American Express Financial Advisors
Managed by IDS Life Insurance Company
Offers six portfolios with separate goals and objectives to provide investment
flexibility for Variable Life Insurance Policies.
<PAGE>
Contents
From the president 3
Equity Portfolio
From the portfolio manager 4
Ten largest holdings 5
Income Portfolio
From the portfolio manager 6
Ten largest holdings 7
Money Market Portfolio
From the portfolio manager 8
Managed Portfolio
From the portfolio managers 9
Ten largest holdings 10
Government Securities Portfolio
From the portfolio manager 11
International Equity Portfolio
From the portfolio manager 12
Ten largest holdings 13
All portfolios
Financial statements 14
Notes to financial statements 21
Investments in securities 35
Directors and officers 63
<PAGE>
To our policyowners
From the president
Diversification and balance continue to be critical elements in a financial
strategy. IDS Life provides those elements by combining the six investment
options of IDS Life Series Fund with life insurance protection.
You can allocate your policy's value among these portfolios. However, it should
be noted that the six investment options may not be available under all
policies. For example, the International Equity Portfolio is available only to
purchasers of Flexible Premium Variable Life Insurance (Variable Universal Life)
policies.
In their comments on the following pages, the funds' portfolio managers review
the first half of the past fiscal year, which ran from May through October 1996.
Sincerely,
Richard W. Kling
President
IDS Life Series Fund, Inc.
<PAGE>
To our policyowners
Equity Portfolio
Equity Portfolio
A highly volatile investment environment for growth stocks prevailed during the
first half of the fiscal year, resulting in an up-and-down performance for
Equity Portfolio. For the six months from May through October 1996, policy
owners realized a slight loss of 0.92%. (This figure does not reflect expenses
that apply to the variable subaccounts or to the policy.)
The period got off to a strong start in May, as growth stocks continued to
flourish in an environment of moderate inflation and steady economic growth. By
mid-June, though, an upturn in long-term interest rates began to take a toll on
stocks.
Growth stocks came under particular pressure, especially those of formerly
high-flying technology stocks. By the time the market settled down, several
weeks had gone by and the portfolio's loss had climbed into double digits. But,
true to their often-volatile nature, growth stocks staged an impressive comeback
during August and September that largely made up much of the mid-summer decline.
For the six months, the portfolio's performance essentially tracked that of
growth stocks as a whole -- rallying at the outset, slumping during the summer,
then rebounding. To try to cushion the downturn, I raised the level of cash
reserves in the portfolio during the summer, then lowered it in anticipation of
the subsequent growth-stock recovery. I also reduced the portfolio's holdings
among technology stocks and, to a lesser degree, health-care stocks last summer
in an effort to temper the effect of the decline in those sectors. Concurrently,
I added to investments in the financial services and energy sectors particularly
natural gas.
While the second half of the fiscal year probably will have its trouble spots, I
think the fundamentals remain solid for stocks. The economy continues to chug
along, inflation has yet to reach a threatening level, and corporate profits,
for the most part, are still reasonably good overall. With good stock selection,
I think the next six months can be a productive period for the portfolio.
Martin G. Hurwitz
<PAGE>
The portfolio's ten largest holdings
Equity Portfolio
(pie chart) The ten holdings listed here make up 11.47 % of the Portfolio's net
assets
Percent Value
(of Portfolio's net assets) (as of Oct. 31, 1996)
HBO & Co 2.30% $11,988,925
A health-care information service company that provides a variety of
computer-based information systems and services to hospitals and their
affiliates.
Cisco Systems 1.90 9,900,000
The leading designer and builder of devices that link personal computers in
powerful networks. Cisco is a leader in the fast-growing business network
market.
Tyco Intl 1.05 5,458,750
A diverse, New England-based producer of packaging, cable manufacturing, fire
extinguishing systems, alarms and controls, plus miscellaneous simple electronic
parts.
Falcon Drilling 0.97 5,058,625
A provider of contract drilling and workover services for the domestic and
international oil and gas industry.
Miller Inds 0.96 4,978,875
A manufacturer of towing and recovery equipment in North America that markets
its products under the Century, Challenger, Holmes, Champion and Eagle, Jige
and Bontiface brand names.
Global Marine 0.92 4,777,500
An international offshore drilling contractor that provides offshore drilling
management services. In addition, the company participates in oil and gas
exploration, development and production activities.
3Com 0.89 4,666,125
Offers a broad range of ISO 9000 - complaint global data networking solutions to
high-speed data networks.
Parametric Technology 0.84 4,398,750
This company develops, markets and supports seven families of integrated
software products that automate the design-through-manufacturing
process for the mechanical computer-aided design, manufacturing and engineering
industry.
Marriott Intl 0.84 4,379,375
Operates in two business segments, Lodging and Contract Services. The Lodging
facilities operates under five separate Marriott brand names. The Contract
services provides a wide range of food and facilities management related
services.
Dollar General 0.80 4,162,500
This company profits growth by providing value in consumable basic merchandise
to low-, middle- and fixed-income families.
<PAGE>
To our policyowners
Income Portfolio
Income Portfolio
Income Portfolio responded well to a rally by the bond market last fall and
finished well into positive territory during the first half of its fiscal year.
For the six month period (May through October 1996), policy owners realized a
total return of 5.74%. (This figure does not reflect expenses that apply to the
variable subaccounts or to the policy.)
The beginning of the period coincided with a calmer environment for bonds, which
had spent the previous three months being battered by a run-up in long-term
interest rates brought on by worries that the economy would overheat and take
inflation substantially higher. But by May, most of the damage had been done,
and the bond market settled into a wait-and-see position.
It found some reassurance in July, when the latest key economic data, especially
the inflation report, proved to be unthreatening. Still, it took until
September, when the Federal Reserve Board decided that inflation remained tame
enough not to require a hike in short-term interest rates, before the bond
market could mount a meaningful advance. To the portfolio's benefit, the market
sustained its forward momentum through the first half of the fiscal period in
October as long-term interest rates tumbled.
Consistent with its history, the portfolio remained largely invested in three
bond sectors: bonds issued by the U.S. government, bonds issued by U.S.
corporations, and mortgage-backed bonds issued by government agencies commonly
known as Fannie Mae and Ginnie Mae. The latter group comprised the portfolio's
greatest investment concentration (between 27% and 34% of assets during the
period), followed by corporate bonds (23-25%), and U.S. government and agency
bonds (14-19%).
Based on an outlook of moderate economic growth and relatively stable inflation,
I don't expect major market moves in either direction during the remaining
months of the fiscal year. Therefore, at this point (late November) I am
maintaining a neutral structure in the portfolio -- neither aggressive nor
conservative -- in relation to potential changes in long-term interest rates.
Lorraine R. Hart
<PAGE>
Your portfolio's ten largest holdings
Income Portfolio
(pie chart) The ten holdings listed here make up 7.24% of the Portfolio's net
assets
Percent Value
(of Portfolio's net assets) (as of Oct. 31, 1996)
Poland Euro 0.85 534,219
3.75% 2014
American Stores 0.83 516,155
8% 2026
Usinor Sacilor 0.80 503,385
7.25% 2006
Cox Communications 0.80 499,645
7.625% 2025
Columbia Gas 0.78 489,255
7.32% 2010
Case 0.65 403,532
7.25% 2005
Norwest 0.64 399,088
6.375% 2002
Continental Air Lines 0.64 397,844
6.94% 2015
First Bank System 0.63 395,892
6.875% 2007
Foster Wheeler 0.62 390,772
6.75% 2005
Excludes U.S. Treasury and mortgage backed securities holdings that total 47.3%
of the portfolio's net assets.
<PAGE>
To our policyowners
Money Market Portfolio
Money Market Portfolio
Short-term interest rates rose slightly during the first half of the fiscal year
(May through October 1996), resulting in a six-month yield on the portfolio of
2.41%. The net asset value remained at $1 per share during the period. (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.) (This figure does not
reflect expenses that apply to the variable subaccounts or to the policy.)
Signs of a strengthening economy had already begun to surface when the period
began last May. Because higher inflation is typically associated with greater
economic growth, short-term interest rates started edging up. Although
subsequent data revealed inflation not to be on the rise, rates crept moderately
higher through the summer months. In light of that trend, I reduced the average
maturity of the securities in the portfolio from about 38 days to just under 30
days by the end of August. This strategy allowed me to more quickly add
higher-yielding securities as they become available.
By fall, inflation concerns had abated to the degree that the Federal Reserve
Board felt it unnecessary to raise short-term interest rates. At that point, I
began to modestly increase the portfolio's average maturity, which reached
approximately 35 days at the end of October.
At this time, (late November), it appears the most likely scenario for the
months ahead is that economic growth will slow down somewhat. While that should
help keep a lid on inflation, the Federal Reserve may nevertheless decide to
nudge short-term interest rates higher. Given the uncertainty of the situation
at this point, I plan to keep the portfolio's average maturity in a neutral
range, which will make it easier to adjust the portfolio to take advantage of
either a rate rise or decline.
Terry Fettig
<PAGE>
Managed Portfolio
Managed Portfolio
A well-diversified stock portfolio and a rebound in the bond market led to a
productive period for Managed Portfolio during the first half of the fiscal
year. For the six months (May through October 1996), policy owners realized a
total return of 6.12%. (This figure does not reflect expenses that apply to the
variable subaccounts or to the policy.)
The mostly positive environment that stocks and bonds had enjoyed since the
start of 1995 continued during the past six months, as a low rate of inflation,
moderate economic growth, relatively stable interest rates and generally good
corporate profits provided a solid investment foundation. The portfolio
responded well to those factors, generating positive results in every month
except July, when investors' fear of potentially higher inflation and,
consequently, higher interest rates caused stocks to go into a temporary
decline.
As we have for some time, we maintained an emphasis on stocks of larger, blue
chip companies, whose relatively predictable business results kept them in favor
with investors. Over the period, our holdings in the technology and financial
services sectors made especially good contributions. At between 43% and 47% of
assets, U.S. stocks continued to comprise the largest portion of the portfolio.
The next-largest portion, U.S. bonds (33% to 38% of assets), also responded
positively to the investment environment, especially during September and
October, when falling long-term interest rates sparked a strong rally in the
bond market. Consistent with the portfolio's investment style, most of the bond
investments were in securities issued by the U.S. government.
We made only minor changes to the overall portfolio during the period, the most
noteworthy being an increase of about 5% in our bond holdings last August. The
timing of that move proved to be good, given the subsequent upturn in the U.S.
bond market over the ensuing two months.
As the for the last half of the fiscal year, we won't be surprised to see stocks
and bonds encounter less-than-ideal conditions at times. If so, the overall high
quality level and the broad diversification of our investments should allow the
portfolio to weather such an environment relatively well, while allowing it to
participate in the markets' possible advances.
Betty J. Tebault
Scott Schroepfer
<PAGE>
The portfolio's ten largest holdings
Managed Portfolio
(pie chart) The ten holdings listed here make up 11.01% of the Portfolio's net
assets
Percent Value
(of Portfolio's net assets) (as of Oct. 31, 1996)
Emerson Electric 1.22% $4,450,000
A diversified manufacturer of electrical and electronic products for use in
commercial and industrial products, appliances and construction-related
components.
Tyco Intl 1.20 4,381,887
A diverse, New England-based producer of packaging, cable manufacturing, fire
extinguishing systems, alarms and controls, plus miscellaneous simple electronic
parts.
Praxair 1.15 4,203,750
Largest supplier of industrial gases in North and South American that are used
in the primary metals, metal fabrication, chemicals, medical, eletronics,
petroleum refining, aerospace, food-processing, oil and gas, glass,
environmental remediation, printing and pulp and paper industries.
Boeing 1.13 4,101,125
The largest producer of commercial aircraft in the free world with over 50% of
the market.
Lockheed Martin 1.11 4,033,125
The corporation operates five principal business segments: aeronautics, space
and strategic missiles, electronics and information and technology services.
Time Warner 1.10 4,023,000
One of the world's largest media/entertainment/publishing companies. Prominent
perating units include Time magazine, Warner Bros. and HBO.
Merck 1.10 4,002,750
A research-intensive health products company that discovers, develops, produces
and markets human and animal health products and services.
UNUM 1.03 3,759,925
Through various subsidiaries, a provider of a broad range of disability, health,
life insurance and group pension products.
Intel .99 3,625,875
Company designs, develops, manufactures and markets microcomputer components and
related products at various levels of integration.
UCAR Intl .98 3,560,375
Engaged in the development, manufacture and marketing of carbon and graphite
products for the steel, ferroalloys, aluminum, chemicals, aerospace and
transportation industries.
Excludes U.S. Treasury and government agency holdings that total 18% of the
portfolio's net assets.
<PAGE>
To our policyowners
Government Securities Portfolio
Government Securities Portfolio
An improving environment for bonds set the stage for a solid gain by Government
Securities Portfolio during the first half of the fiscal year (May through
October 1996). For the six months, policy owners were rewarded with a total
return of 5.11%. (This figure does not reflect expenses that apply to the
variable subaccounts or to the policy.)
Although the past period was a productive one overall, it was not without
volatility. The period began with the bond market still on shaky ground as a
result of a sharp run-up in long-term interest rates during February and March.
The cause of the rate rise was data indicating a strengthening economy, which
fueled fears of higher inflation, the ongoing nemesis of the bond market.
(Higher inflation erodes bonds' values and, therefore, their prices in the
marketplace.)
The market continued to fluctuate during the summer with shifting opinions on
the outlook for inflation. By September, though, the prevailing view was that
inflation was not an imminent problem, a position that was reinforced when the
Federal Reserve Board chose not to raise short-term interest rates that month.
Quickly, investors began putting more money into bonds and fueling a powerful
rally that lasted through October and substantially boosted the portfolio's
performance.
The greatest gain during that time was generated by our holdings among U.S.
Treasury bonds, which I increased by about 8% last August. By the end of the
period, those securities comprised about 70% of portfolio assets, with
mortgage-backed securities (about 28%) and cash reserves (about 2%) making up
the rest.
While I don't expect a sharp downturn in the months ahead, I think the bond
market is unlikely to advance as it did this past fall. Therefore, at this
writing (late November) I am taking what might be called a neutral position with
the portfolio, emphasizing securities' income rather than their potential price
appreciation.
James W. Snyder
<PAGE>
To our policyowners
International Equity Portfolio
International Portfolio
The past six months was a volatile period for world stock markets. International
Portfolio's up-and-down performance reflected that fact, ultimately producing a
loss of 1.47% during the first half of the fiscal year (May through October
1996). (This figure does not reflect expenses that apply to the variable
subaccounts or to the policy.)
The period began on a positive note, as the portfolio gained substantial ground
in May. The momentum soon dissipated, however, as investors began to fear that a
rise in U.S. interest rates would spread to foreign economies, particularly the
smaller ones in Asia. The result was widespread stock-selling in foreign markets
during June and July and a considerable loss for the portfolio. The markets
finally righted themselves in August and sustained an advance that lasted until
October, when they finished the period with another downturn. The portfolio's
performance during that time roughly tracked that broad market trend.
For the six months, the most consistent performers for the portfolio were the
so-called "emerging" markets of Latin America, including Mexico, Brazil and
Argentina. Among the major, more-established markets, returns from Japan were
penalized by a decline in the value of the yen versus the U.S. dollar, while
results in Europe were mixed. During the last three months of the period, the
U.S. market gave the portfolio a boost, as it rallied strongly. The timing of
the rally proved to be especially good as I had increased the portfolio's U.S.
holdings (from about 5% to almost 25% of assets) last August.
In other portfolio changes, to try to cushion the effect of foreign-market
declines, I raised the level of cash reserves from under 9% to more than 20% by
late summer. That strategy worked to the portfolio's benefit in October, when
the markets in Latin America and Southeast Asia experienced downturns.
While results for the past six months stand in stark contrast to the
extraordinary gain the portfolio enjoyed in the previous 12 months, I want to
assure policy owners that I remain optimistic about the future for international
investing. Above-average volatility is a fact of life in foreign markets, but I
believe the potential rewards make it well worth accepting.
Richard Lazarchic
<PAGE>
Your portfolio's ten largest holdings
International Equity Portfolio
(pie chart) The ten holdings listed here make up 15.58% of the Portfolio's net
assets
Percent Value
(of Portfolio's net assets) (as of Oct. 31, 1996)
Sun Intl Hotels (Bahamas) 2.93% $2,598,750
This is a holding company and through its subsidiaries operates hotels, casinos
and other leisure facilities. In addition, it is engaged in real estate and
air transportation.
ENI (Italy) 1.68 1,484,608
A state owned oil and gas company in Italy.
Biovail (Canada) 1.65 1,462,500
This company is engaged in the formulation, development and manufacturing of
controlled release oral products. In addition, the company provides contract
research services.
Quimica Minera Chile ADR 1.62 1,437,500
Through its subsidiaries the company is engaged in the production and sale of
chemical products and concentrated minerals, including iodine, potassium,
nitrates, sulfates and fertilizers.
Secom (Japan) 1.34 1,191,302
This company operates in 3 industry segments: security services, information and
communication related and other services and medical services.
Freepages (United Kingdom) 1.33 1,175,055
The trading activities of this group relate solely to the supply of building
materials undertaken by G. Blagg Ltd.
Christian Dior (France) 1.28 1,130,562
The Company is involved in the following five main areas of sale and
production: Christian Dior Couture, Champagne & Wines, Luggage & Leather
Goods, Perfumes & Beauty Products.
Multi Purpose Holdings (Malaysia) 1.27 1,128,518
This group's principle activities consist of the operation of a licensed four
digit numbers for cast game; property development and property investment;
commercial banking; finance and general insurance.
Disco (Argentina) 1.27 1,125,000
This company is engaged in the operation of the Disco supermarket chain. Disco
also owns and operates the supermarkets and convenience stores.
GP Batteries (Singapore) 1.21 1,073,000
An investment holding company. Through its subsidiaries, the company is engaged
in the development, manufacture, distribution and trading of batteries and
related products.
<PAGE>
Statements of assets and liabilities IDS Life Series Fund, Inc.
Oct. 31, 1996 (Unaudited)
Equity Income Money
Portfolio Portfolio Market
Portfolio
Assets
- --------------------------------------------------------------------------------
Investments in securities, at value
(Note 1)(identified cost: $450,243,730;
$60,278,285 and $19,230,220,
respectively) $520,742,897 $61,781,133 $19,203,220
Cash in bank on demand deposit 140,285 54,563 68,940
Receivable for investment securities sold 10,235,109 407,307 --
Dividends and accrued interest receivable 178,858 866,961 --
Unrealized appreciation on foreign currency
contracts held, at value (Notes 1 and 4) 166 -- --
Receivable (for capital stock sold) from:
IDS Life subaccounts -- 308,456 439,154
IDS Life of New York subaccounts -- 20,458 11,345
- --------------------------------------------------------------------------------
Total assets 531,297,315 63,438,878 19,722,659
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Liabilities
- --------------------------------------------------------------------------------
Dividends payable to separate accounts
(Note 1) 422,018 350,181 76,262
Payable for investment securities purchased 8,619,973 409,424 --
Accrued investment management and services
fee 309,646 36,589 7,960
Payable (for capital stock redeemed) to:
IDS Life subaccounts 434,046 9,789 98
IDS Life of New York subaccounts 289,182 103 --
Other accrued expenses 45,549 34,231 10,129
- --------------------------------------------------------------------------------
Total liabilities 10,120,414 840,317 94,449
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Net assets applicable to outstanding
capital stock $521,176,901 $62,598,561 $19,628,210
- --------------------------------------------------------------------------------
Represented by
- --------------------------------------------------------------------------------
Capital stock - authorized 10,000,000,000
shares of $.001 par value: outstanding,
21,222,115; 6,161,718 and 19,630,034
shares, respectively $ 21,222 $ 6,162 $ 19,630
Additional paid-in capital 428,009,266 61,286,920 19,609,512
Undistributed (excess of distributions
over) net investment income 23,583 (811) (133)
Accumulated net realized gain (loss) on
investments (Notes 1 and 7) 22,623,305 (196,558) (799)
Unrealized appreciation of investments and
on translation of assets and liabilities
in foreign currencies (Note 4) 70,499,525 1,502,848 --
- --------------------------------------------------------------------------------
Total - representing net assets applicable
to outstanding capital stock $521,176,901 $62,598,561 $19,628,210
- --------------------------------------------------------------------------------
Net asset value per share of outstanding
capital stock $ 24.56 $ 10.16 $ 1.00
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See accompanying notes to financial statements.
<PAGE>
Statements of assets and liabilities
(continued)
Managed Government International
Portfolio Securities Equity
Portfolio Portfolio
Assets
- --------------------------------------------------------------------------------
Investments in securities, at value
(Note 1)
IDS Life Series Fund, Inc.
Oct. 31, 1996 (Unaudited)
(identified cost: $326,005,959,
$12,273,225 and $86,845,594,
respectively) $362,682,880 $12,610,858 $88,241,814
Cash in bank on demand deposit 75,689 53,466 75,605
Receivable for investment securities
sold 4,768,074 -- 1,950,924
Dividends and accrued interest
receivable 2,741,373 167,468 122,766
Unrealized appreciation on foreign
currency contracts held, at value
(Notes 1 and 4) -- -- 2,036
Receivable (for capital stock sold)
from:
IDS Life subaccounts 2,170,605 44,877 103,920
IDS Life of New York subaccounts 153,097 7,044 18,782
- --------------------------------------------------------------------------------
Total assets 372,591,718 12,883,713 90,515,847
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Dividends payable to separate accounts
(Note 1) 3,125,793 63,247 241,232
Payable for investment securities
purchased 4,656,104 -- 1,524,028
Accrued investment management and services
fee 214,736 7,551 70,371
Unrealized depreciation on foreign
currency contracts held, at value
(Notes 1 and 4) -- -- 38,807
Payable (for capital stock redeemed) to:
IDS Life subaccounts 2,369 3,513 --
IDS Life of New York subaccounts -- -- --
Other accrued expenses 87,852 9,494 12,482
- --------------------------------------------------------------------------------
Total liabilities 8,086,854 83,805 1,886,920
- --------------------------------------------------------------------------------
Net assets applicable to outstanding
capital stock $364,504,864 $12,799,908 $88,628,927
- --------------------------------------------------------------------------------
Represented by
- --------------------------------------------------------------------------------
Capital stock -- authorized
10,000,000,000 shares of $.001 par
value: outstanding, 22,077,703;
1,272,161 and 6,065,047 shares,
respectively $ 22,077 $ 1,272 $ 6,065
Additional paid-in capital 316,762,558 12,473,499 84,506,160
Excess of distributions over net
investment income (55,452) (109,787) (134,309)
Accumulated net realized gain (Note 1) 10,456,928 97,291 (2,941,152)
Unrealized appreciation of investments
and on translation of assets and
liabilities in foreign currencies
(Note 4) 37,318,753 337,633 1,309,859
- --------------------------------------------------------------------------------
Total -- representing net assets
applicable to outstanding capital
stock $364,504,864 $12,799,908 $88,628,927
- --------------------------------------------------------------------------------
Net asset value per share of
outstanding capital stock $ 16.51 $ 10.06 $ 14.61
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
Statements of operations
IDS Life Series Fund, Inc
Six months ended Oct. 31, 1996 (Unaudited)
Equity Income Money
Portfolio Portfolio Market
Portfolio
Investment income
- --------------------------------------------------------------------------------
Income:
Dividends (net of foreign taxes
withheld of $16,168 for Equity
Portfolio) $ 806,958 $ 12,415 $ --
Interest 1,656,095 2,210,846 448,727
- --------------------------------------------------------------------------------
Total income 2,463,053 2,223,261 448,727
- --------------------------------------------------------------------------------
Expenses (Note 2):
Investment management and services fee 1,687,091 205,383 41,502
Custodian fees 70,500 11,000 8,650
Audit fees 7,000 5,000 3,500
Registration fees 10,000 4,000 500
Directors fees 3,000 1,500 400
Printing and postage 28,000 7,000 2,000
Other 1,400 840 100
- --------------------------------------------------------------------------------
Total expenses 1,806,991 234,723 56,652
Less expenses reimbursed by IDS Life -- -- (6,850)
- --------------------------------------------------------------------------------
Total expenses - net 1,806,991 234,723 49,802
- --------------------------------------------------------------------------------
Investment income - net 656,062 1,988,538 398,925
- --------------------------------------------------------------------------------
Realized and unrealized gain (loss) on
investments - net
- --------------------------------------------------------------------------------
Net realized gain (loss) on investments
(Note 3) 22,788,916 368,615 (62)
Net realized loss on foreign currency
transactions (2,584) -- --
- --------------------------------------------------------------------------------
Net realized gain (loss) on investments
and foreign currencies 22,786,332 368,615 (62)
Net change in unrealized appreciation or
depreciation of investments and on
translation of assets and liabilities
in foreign currencies (19,986,420) 1,062,795 --
- --------------------------------------------------------------------------------
Net gain (loss) on investments and
foreign currencies 2,799,912 1,431,410 (62)
- --------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 3,455,974 $3,419,948 $398,863
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
Statements of operations (continued)
IDS Life Series Fund, Inc
Six months ended Oct. 31, 1996 (Unaudited)
Managed Government International
Portfolio Securities Equity
Portfolio Portfolio
Investment income
- --------------------------------------------------------------------------------
Income:
Dividends (net of foreign taxes
withheld of $43,943 for
International Equity Portfolio) $ 1,247,477 $ -- $ 493,916
Interest 6,031,752 429,013 378,723
- --------------------------------------------------------------------------------
Total income 7,279,229 429,013 872,639
- --------------------------------------------------------------------------------
Expenses (Note 2):
Investment management and services
fee 1,186,370 44,236 338,011
Custodian fees 30,700 4,000 82,000
Audit fees 7,000 4,000 5,500
Registration fees 11,000 800 2,000
Directors fees 2,500 400 500
Printing and postage 30,000 2,000 2,500
Other 1,500 150 150
- --------------------------------------------------------------------------------
Total expenses 1,269,070 55,586 430,661
Less expenses reimbursed by IDS Life -- (5,031) (57,072)
- --------------------------------------------------------------------------------
Total expenses -- net 1,269,070 50,555 373,589
- --------------------------------------------------------------------------------
Investment income -- net 6,010,159 378,458 499,050
- --------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments -- net
- --------------------------------------------------------------------------------
Net realized gain on investments
(Note 3) 9,760,449 (6,007) 2,876,244
Net realized gain on foreign currency
transactions 640 -- 64,908
Net realized gain on closed futures
contracts 751,339 -- --
- --------------------------------------------------------------------------------
Net realized gain (loss) on investments
and foreign currencies 10,512,428 (6,007) 2,941,152
Net change in unrealized appreciation
or depreciation of investments and
on translation of assets and
liabilities in foreign currencies 4,954,720 220,905 (4,577,759)
- --------------------------------------------------------------------------------
Net gain (loss) on investments and
foreign currencies 15,467,148 214,898 (1,636,607)
- --------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from operations $21,477,307 $593,356 $(1,137,557)
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
Statements of changes in net assets IDS Life Series Fund, Inc.
Equity Portfolio Income Portfolio
Operations and
distributions Oct. 31, April 30, Oct 31, April 30,
1996 1996 1996 1996
Six months Year ended Six months Year ended
ended ended
(Unaudited) (Unaudited)
- --------------------------------------------------------------------------------
Investment income --
net $ 656,06 $ 489,831 $ 1,988,538 $ 3,176,680
Net realized gain on
investments and
foreign currencies 22,786,332 73,815,809 368,615 327,190
Net change in unrealized
appreciation of investments
and on translation of assets
and liabilities in
foreign currencies (19,986,420 52,637,428 1,062,795 385,120
- --------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations 3,455,974 126,943,068 3,419,948 3,888,990
- --------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (632,432) (484,198) (1,987,727) (3,152,824)
Excess distribution of
net investment income -- (26,661) (811) (10,470)
Net realized gain (73,838,149) (76,149) -- --
- --------------------------------------------------------------------------------
Total distributions (74,470,581) (587,008) (1,988,538) (3,163,294)
- --------------------------------------------------------------------------------
Capital share transactions (Note 6)
- --------------------------------------------------------------------------------
Proceeds from sales 73,592,864 88,096,157 7,398,874 16,653,461
Reinvested distributions
at net asset value 74,470,581 587,008 1,988,538 3,163,294
Payments for
redemptions (4,284,336) (7,658,827) (3,196,424) (3,389,539)
- --------------------------------------------------------------------------------
Increase in net assets
from capital share
transactions 143,779,109 81,024,338 6,190,988 16,427,216
- --------------------------------------------------------------------------------
Total increase in net
assets 72,764,502 207,380,398 7,622,398 17,152,912
Net assets at
beginning of
period 448,412,399 241,032,001 54,976,163 37,823,251
- --------------------------------------------------------------------------------
Net assets at end
of period $521,176,901 $448,412,399 $62,598,561 $54,976,163
- --------------------------------------------------------------------------------
Undistributed (excess
of distributions
over) net
investment income $ 23,583 $ (47) $ (811) $ (811)
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
Statements of changes in net assets (continued) IDS Life Series Fund, Inc.
Money Market Portfolio Managed Portfolio
Operations and
distributions Oct. 31, April 30, Oct. 31, April 30,
1996 1996 1996 1996
Six months Year ended Six months Year ended
ended ended
(Unaudited) (Unaudited)
- --------------------------------------------------------------------------------
Investment income -
net $ 398,925 $ 645,793 $ 6,010,159 $ 10,044,599
Net realized gain (loss)
on investments
and foreign currencies (62) (84) 10,512,428 17,885,868
Net change in unrealized
appreciation of
investments and on
translation of assets
and liabilities in
foreign currencies -- -- 4,954,720 24,654,105
- --------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations 398,863 645,709 21,477,307 52,584,572
- --------------------------------------------------------------------------------
Distributions to shareholders
from:
Net investment income (398,925) (645,793) (5,955,347) (10,002,686)
Excess distribution
of net investment
income (133) -- (55,452) --
Net realized gain -- -- (13,910,481) (2,226,152)
- --------------------------------------------------------------------------------
Total distributions (399,058) (645,793) (19,921,280) (12,228,838)
- --------------------------------------------------------------------------------
Capital share transactions (Note 6)
- --------------------------------------------------------------------------------
Proceeds from sales 8,908,091 12,705,078 31,382,383 54,477,756
Reinvested distributions
at net asset value 399,058 645,793 19,921,280 12,228,838
Payments for redemptions (3,997,099) (8,917,032) (5,087,119) (10,316,093)
- --------------------------------------------------------------------------------
Increase in net assets
from capital share
transactions 5,310,050 4,433,839 46,216,544 56,390,501
- --------------------------------------------------------------------------------
Total increase in net
assets 5,309,855 4,433,755 47,772,571 96,746,235
Net assets at beginning
of period 14,318,355 9,884,600 316,732,293 219,986,058
- --------------------------------------------------------------------------------
Net assets at end
of period $19,628,210 $14,318,355 $364,504,864 $316,732,293
- --------------------------------------------------------------------------------
Excess of distributions
over net investment
income $ (133) $ -- $ (55,452) $ (54,812)
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
Statements of changes in net assets (continued) IDS Life Series Fund, Inc.
Government Securities International Equity
Portfolio Portfolio
Operations and
distributions Oct. 31, April 30, Oct. 31, April 30,
1996 1996 1996 1996
Six months Year ended Six months Year ended
ended ended
(Unaudited) (Unaudited)
- --------------------------------------------------------------------------------
Investment income -- net $ 378,458 $ 732,941 $ 499,050 $ 212,955
Net realized gain (loss) on
investments and foreign
currencies (6,007) 97,312 2,941,152 5,987,533
Net change in unrealized
appreciation or depreciation
of investments and on
translation of assets and
liabilities in foreign
currencies 220,905 3,853 (4,577,759) 5,339,537
- --------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 593,356 834,106 (1,137,557) 11,540,025
- --------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income (371,969) (729,863) (499,673) (212,955)
Excess distributions of net
investment income (109,787) (3,078) (134,309) (77,263)
Net realized gain -- -- (5,909,647) --
- --------------------------------------------------------------------------------
Total distributions (481,756) (732,941) (6,543,629) (290,218)
- --------------------------------------------------------------------------------
Capital share transactions (Note 6)
- --------------------------------------------------------------------------------
Proceeds from sales 990,887 2,091,806 38,788,739 32,311,329
Reinvested distributions at net
asset value 481,756 732,941 6,543,629 290,218
Payments for redemptions (1,248,740) (1,901,971) (1,083,690) (286,727)
- --------------------------------------------------------------------------------
Increase in net assets from capital
share transactions 223,903 922,776 44,248,678 32,314,820
- --------------------------------------------------------------------------------
Total increase in net assets 335,503 1,023,941 36,567,492 43,564,627
Net assets at beginning of
period 12,464,405 11,440,464 52,061,435 8,496,808
- --------------------------------------------------------------------------------
Net assets at end of period $12,799,908 $12,464,405 $88,628,927 $52,061,435
- --------------------------------------------------------------------------------
Undistributed (excess of
distributions over)
net investment income $ (109,787) $ (6,489) $ (134,309)$ (623)
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
Notes to financial statements
(Unaudited as of Oct. 31, 1996)
________________________________________________________________________________
1. Summary of significant accounting policies
The Fund is registered under the Investment Company Act of 1940 (as amended) as
a diversified, open-end management investment company. It has six portfolios
whose goals are as follows:
Equity Portfolio invests primarily in U.S. common stocks and securities
convertible into common stock;
Income Portfolio invests in corporate bonds of the four highest ratings;
Money Market Portfolio invest in high-quality short-term debt securities;
Managed Portfolio invests in common and preferred stocks, convertible
securities, debt securities and money market instruments;
Government Securities Portfolio invests in debt obligations issued or
guaranteed by U.S. governmental units; and
International Equity Portfolio invests primarily in common stocks of
foreign issuers.
Shares of each portfolio of the Fund are sold to IDS Life Insurance Company (IDS
Life) subaccounts 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:
Use of estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the period. Actual results could differ from those estimates.
Valuation of securities
All securities are valued at the close of each business day. Securities, 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, Government Securities and International Equity
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, Income, Managed,
Government Securities and International Equity Portfolios may buy or sell put or
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 exercised, the proceeds on sales for a written
call option, the purchase cost for a written put option or the cost of a
security for a purchased put or call option is adjusted by the amount of premium
received or paid.
Futures transactions
In order to gain exposure to or protect itself from changes in the market, the
Income, Managed, Government Securities and International Equity 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.
Securities purchased on a when-issued basis
Delivery and payment for securities that have been purchased by the portfolios
on a forward-commitment or when-issued basis can take place one month or more
after the transaction date. During this period, such securities are subject to
market fluctuations and they may affect the portfolio's net assets the same as
owned securities. The portfolios designate cash or liquid high-grade short-term
debt securities at least equal to the amount of its commitment. At Oct. 31,
1996, Managed Portfolio had entered into outstanding when-issued or
forward-commitments of $987,500.
Foreign currency translations and foreign currency contracts
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars at the closing rate of exchange. Foreign
currency amounts related to the purchase or sale of securities and income and
expenses are translated at the exchange rate on the transaction date. The effect
of changes in foreign exchange rates on realized and unrealized security gains
or losses is reflected as a component of such gains or losses. In the statement
of operations, net realized gains or losses from foreign currency transactions
may arise from sales of foreign currency, closed forward contracts, exchange
gains or losses realized between the trade date and settlement dates on
securities transactions, and other translation gains or losses on dividends,
interest income and foreign withholding taxes.
The Equity, Income, Managed and International Equity 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 Oct. 31, 1996, investments in securities for Income Portfolio and Managed
Portfolio included issues that are illiquid. The portfolios currently limit
investments in illiquid securities to 10% of net assets, at market value, at the
time of purchase. The aggregate value of such securities at Oct. 31, 1996 was
$692,976 and $3,250,000, which represents 1.1% and 0.9% of net assets for Income
Portfolio and Managed Portfolio, respectively. Pursuant to guidelines adopted by
the board, certain unregistered securities are determined to be liquid and are
not included in the 10% limitation specified above.
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 gains and losses, 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.
Dividends to shareholders
At Oct. 31, 1996, dividends declared for each portfolio payable Nov. 1, 1996
are as follows:
Equity $.020
Income $.057
Money Market $.004
Managed $.142
Government Securities $.050
International Equity $.040
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, Managed and International Equity
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 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. 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. For International Equity Portfolio
the fee is 0.95% on an annual basis.
IDS Life and American Express Financial Corporation have an Investment Advisory
Agreement which calls for IDS Life to pay American Express Financial Corporation
a fee for investment advice about the Fund's portfolios. The fee paid by IDS
Life is 0.25% of Equity, Income, Money Market, Managed and Government Securities
Portfolios' average daily net assets for the year. The fee paid by IDS Life is
0.35% of International Equity Portfolio'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 American Express 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 six months ended Oct. 31, 1996, cost of purchases and proceeds from
sales of securities aggregated, respectively, $63,682,406 and $58,746,571 for
Money Market Portfolio. Cost of purchases and proceeds from sales of securities
(other than short-term obligations) aggregated for each Portfolio are as
follows:
Portfolio Purchases Proceeds
-------------------------------------------------------
Equity $532,359,142 $466,458,432
Income 34,240,579 26,005,149
Managed 369,405,820 339,452,557
Government Securities 1,740,024 1,428,655
International Equity 64,457,866 41,890,500
Realized gains and losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with IDS Life were $19,230 and
$460 for Equity Portfolio and Managed Portfolio, respectively, for the six
months ended Oct. 31, 1996.
________________________________________________________________________________
4. Foreign currency contracts
At Oct. 31, 1996, Equity Portfolio and International Equity Portfolio had
entered into foreign currency exchange contracts that obligate the portfolio to
deliver currencies at a specified future date. The unrealized appreciation
and/or depreciation (see Summary of significant accounting policies) on these
contracts is included in the accompanying financial statements. The terms of the
open contracts are as follows:
Equity Portfolio
Currency to Currency to Unrealized Unrealized
Exchange date be delivered be received appreciation depreciation
- --------------------------------------------------------------------------------
Nov. 5, 1996 15,309,485 582,386 $166 $ --
Phillippines Peso U.S. Dollar
International Equity Portfolio
Currency to Currency to Unrealized Unrealized
Exchange date be delivered be received appreciation depreciation
- --------------------------------------------------------------------------------
Nov. 4, 1996 261,978 2,025,722 $ -- $ --
U.S. Dollar Hong Kong $
Nov. 4, 1996 237,522 382,852 -- 3,715
British Pound U.S. Dollar
Nov. 5, 1996 753,244 1,145,760,000 2,036 --
U.S. Dollar Italian Lira
Nov. 5, 1996 402,689 648,399 -- 6,976
British Pound U.S. Dollar
Nov. 6, 1996 24,838 9,826 -- --
Malaysian $ U.S. Dollar
Nov. 6, 1996 38,725,365 16,612 -- --
Indonesian Rupiah U.S. Dollar
Nov. 6, 1996 93,710 57,399 -- 293
U.S. Dollar British Pound
Nov. 7, 1996 31,538 19,385 -- --
U.S. Dollar British Pound
Nov. 12, 1996 347,132 877,271 -- --
U.S. Dollar Malaysian $
Dec. 17, 1996 1,500,000 223,917 -- 4,407
Sweden Krona U.S. Dollar
Dec. 17, 1996 1,600,000 242,718 -- 828
Sweden Krona U.S. Dollar
Jan. 21, 1997 6,000,000 1,156,069 -- 22,588
French Franc U.S. Dollar
------- -------
$2,036 $38,807
________________________________________________________________________________
5. Stock index futures contracts
At Oct. 31, 1996, investments in securities in Managed Portfolio included
securities valued at $2,064,560 that were pledged as collateral to cover initial
margin deposits on 38 purchase contracts. The market value of the open contracts
at Oct. 31, 1996 was $13,483,350 with a net unrealized gain of $641,250.
At Oct. 31, 1996, investments in securities in International Equity Portfolio
included securities valued at $232,500 that were pledged as collateral to cover
initial margin deposits on 200 purchase contracts. The market value of the open
contracts at Oct. 31, 1996 was $57,000 with a net unrealized loss of $56,500.
________________________________________________________________________________
6. Capital share transactions
Transactions in shares of each portfolio for the six months ended Oct. 31, 1996
and the year ended April 30, 1996 were as follows:
Number of shares: Six months ended
Oct. 31, 1996
Interna-
Money Government tional
Equity Income Market Managed Securities Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Sold 2,796,925 746,519 8,908,779 1,914,309 99,976 2,495,532
Issued for
reinvested
distributions 3,321,728 172,555 399,09 1,273,675 48,712 464,540
Redeemed (180,193) (294,846) (3,997,457) (315,608) (125,982) (79,176)
- --------------------------------------------------------------------------------
Net increase 5,938,460 624,228 5,310,416 2,872,376 22,706 2,880,896
- --------------------------------------------------------------------------------
Number of shares: Year ended
April 30, 1996
Interna-
Money Government tional
Equity Income Market Managed Securities Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Sold 3,543,079 1,633,884 12,706,236 3,492,833 203,165 2,358,924
Issued for
reinvested
distributions 22,323 311,618 645,835 788,557 71,365 21,630
Redeemed (306,199) (333,001) (8,917,863) (665,334) (186,050) (22,514)
- --------------------------------------------------------------------------------
Net increase 3,259,203 1,612,501 4,434,208 3,616,056 88,480 2,358,040
- --------------------------------------------------------------------------------
________________________________________________________________________________
7. Capital loss carryover
For federal income tax purposes, the Income Portfolio had a capital loss
carryover at April 30, 1996 of $565,173, that, if not offset by subsequent
capital gains, will expire in 2003. It is unlikely the board will authorize a
distribution of any net realized gains until the portfolio's capital loss
carryover has been offset or expires.
________________________________________________________________________________
<TABLE>
8. Financial highlights
The tables below show certain important financial information for evaluating
each portfolio's results.
Performance
Equity Portfolio
Financial highlights
The tables below show certain important financial information for evaluating
each portfolio's results.
Fiscal period ended April 30,
Per share income and capital changes*
<CAPTION>
1996**1996 1995 1994 1993 1992 1991 1990 1989 1988
- ------------------------------------------------------------------------------------
Net asset value,
beginning of
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
period $29.34 $20.05 $18.10 $16.87 $16.01 $13.94 $12.77 $12.16 $10.79 $12.05
- ------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment
income .03 .03 .10 .06 .03 .03 .13 .35 .36 .15
Net gains
(losses) (both
realized and
unrealized) (.30) 9.30 2.40 3.26 1.40 2.90 2.09 .61 1.37 (1.13)
- -------------------------------------------------------------------------------------
Total from
investment
operations (.27) 9.33 2.50 3.32 1.43 2.93 2.22 .96 1.73 (0.98)
- -------------------------------------------------------------------------------------
Less distributions:
Dividends
from net
investment
income (.03) (.03) (.10) (.06) (.03) (.03) (.13) (.35) (.36) (.15)
Distributions
from realized
gains (4.48) (.01) (.45) (2.03) (.54) (.83) (.92) -- -- (.13)
Total
distributions (4.51) (.04) (.55) (2.09) (.57) (.86) (1.05) (.35) (.36) (.28)
- -------------------------------------------------------------------------------------
Net asset value,
end of period $24.56 $29.34 $20.05 $18.10 $16.87 $16.01 $13.94 $12.77 $12.16 $10.79
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
Ratios/supplemental data
<CAPTION>
1996** 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ------------------------------------------------------------------------------------------------
Net assets,
end of period
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(in thousands)$521,177 $448,412 $241,032 $151,860 $87,742 $55,265 $33,933 $16,355 $11,620 $7,247
Ratio of expenses
to average
daily net assets .75%# .76% .77% .75% .79% .80% .80%+ .80%+ .80%+ 1.10%
Ratio of net
income to average
daily net assets .27%# .15% .56% .33% .21% .17% 1.03% 2.61% 3.32% 1.21%
Portfolio
turnover rate
(excluding
short-term
securities) 110% 184% 144% 109% 81% 52% 79% 190% 48% 57%
Total return++ (0.92%) 46.62% 13.87% 19.72% 8.92% 21.06% 18.55% 7.84% 16.18% (8.04%)
Average
brokerage
commission
rate+++ $.0467 -- -- -- -- -- -- -- -- --
</TABLE>
* For a share outstanding throughout the period. Rounded to the nearest
cent.
** Six months ended Oct. 31, 1996 (Unaudited).
# Adjusted to an annual basis.
+ Commencing on April 5, 1989, IDS Life voluntarily limited total operating
expenses to 0.8% of average daily net assets. Had IDS Life not done so, the
ratio of expenses to average daily net assets would have been 0.81%, 0.82%
and 0.84% for the years ended April 30, 1991, 1990 and 1989 respectively.
++ Total return does not reflect the expenses that apply to the subaccounts
or the policies.
+++ Effective fiscal year 1997, the Fund is required to disclose an average
brokerage commission rate. The rate is calculated by dividing the total
brokerage commissions paid on applicable purchases and sales of portfolio
securities for the period by the total number of related shares purchased
and sold.
<PAGE>
Income Portfolio
Financial highlights (continued)
Fiscal period ended April 30,
Per share income and capital changes*
1996** 1996 1995 1994 1993 1992 1991 1990 1989 1988
- --------------------------------------------------------------------------------
Net asset
value, beginning
of period $9.93 $9.64 $9.71 $10.19 $ 9.40 $9.19 $8.55 $8.93 $9.05 $9.42
Income from investment operations:
Net investment
income .34 .68 .69 .71 .76 .73 .75 .75 .70 .68
Net gains (losses)
(both realized and
unrealized) .23 .29 (.07) (.48) .80 .21 .64 (.40) (.12) (.37)
- --------------------------------------------------------------------------------
Total from investment
operations .57 .97 .62 .23 1.56 .94 1.39 .35 .58 .31
- --------------------------------------------------------------------------------
Less distributions:
Dividends from net
investment income(.34) (.68) (.69) (.71) (.77) (.73) (.75) (.73) (.70) (.68)
- --------------------------------------------------------------------------------
Net asset value,
end of period $10.16 $9.93 $9.64 $ 9.71$10.19 $9.40 $9.19 $8.55 $8.93 $9.05
- --------------------------------------------------------------------------------
<TABLE>
Ratios/supplemental data
<CAPTION>
1996** 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -------------------------------------------------------------------------------------------
Net assets,
end of period
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(in thousands) $62,599 $54,976 $37,823 $33,770 $22,641 $16,306 $11,949 $8,831 $6,203 $4,456
Ratio of expenses
to average
daily net assets.80%++ .80% .80% .80% .80%+ 80%+ .80%+ .80%+ 1.11% 1.13%
Ratio of net
income to
average daily
net assets 6.76%++ 6.72% 7.23% 6.83% 7.66% 7.86% 8.41% 8.02% 7.87% 7.50%
Portfolio
turnover rate
(excluding
short-term
securities) 97% 36% 55% 60% 47% 75% 55% 60% 99% 64%
Total
return+++ 5.74% 10.02% 6.67% 2.12% 17.17% 10.60% 16.77% 3.75% 6.70% 3.59%
</TABLE>
* For a share outstanding throughout the period. Rounded to the nearest
cent.
** Six months ended Oct. 31, 1996 (Unaudited).
+ Commencing on May 1, 1989, IDS Life voluntarily limited total operating
expenses to 0.8% of average daily net assets. Had IDS Life not done so, the
ratio of expenses to average daily net assets would have been 0.83%, 0.88%,
0.93% and 0.96% for the years ended April 30, 1993, 1992, 1991 and 1990,
respectively.
++ Adjusted to an annual basis.
+++ Total return does not reflect the expenses that apply to the subaccounts
or the policies.
<PAGE>
Money Market Portfolio
Financial highlights (continued)
Fiscal period ended April 30,
Per share income and capital changes*
1996** 1996 1995 1994 1993 1992 1991 1990 1989 1988
- --------------------------------------------------------------------------------
Net asset
value,
beginning
of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment
income .02 .05 .04 .03 .03 .05 .07 .08 .07 .06
- --------------------------------------------------------------------------------
Less distributions:
Dividends from
net investment
income (.02) (.05) (.04) (.03) (.03) (.05) (.07) (.08) (.07) (.06)
- --------------------------------------------------------------------------------
Net asset
value, end
of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------
<TABLE>
Ratios/supplemental data
<CAPTION>
1996** 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -----------------------------------------------------------------------------------
Net assets,
end of period
(in
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
thousands) $19,628 $14,318 $9,885 $9,557 $8,181 $9,771 $9,596 $6,321 $4,721 $2,748
Ratio of
expenses to
average daily
net assets .60%+# .60%+ .60%+ .60%+ .60%+ .60%+ .60%+ .60%+ 1.10%+ .96%
Ratio of
net income
to average
daily net
assets 4.79%# 5.04% 4.45% 2.61% 3.00% 4.60% 7.06% 8.26% 7.38% 5.89%
Total
return++ 2.41% 5.03% 4.50% 2.61% 3.04% 4.71% 7.41% 8.61% 7.52% 6.13%
</TABLE>
* For a share outstanding throughout the period. Rounded to the nearest
cent.
+ Commencing on April 5, 1989, IDS Life voluntarily limited total operating
expenses to 0.6% of average daily net assets. Had IDS Life not done so,
the ratio of expenses to average daily net assets would have been 0.68%
for the six month period ended Oct. 31, 1996, 0.73%, 0.77%, 0.71%, 0.74%,
0.75%, 0.86%, 0.96% and 1.35% for the years ended April 30, 1996, 1995,
1994, 1993, 1992, 1991, 1990, 1989 and 1988 respectively.
++ Total return does not reflect the expenses that apply to the subaccounts
or the policies.
# Adjusted to an annual basis.
<PAGE>
<TABLE>
Managed Portfolio
Financial highlights (continued)
Fiscal year ended April 30,
Per share income and capital changes*
<CAPTION>
1996** 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -----------------------------------------------------------------------------------
Net asset
value,
beginning
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
of period $16.49 $14.11 $13.85 $13.84 $13.55 $13.29 $12.80 $11.22 $10.42 $11.40
- -----------------------------------------------------------------------------------
Income from investment operation:
Net investment
income .29 .57 .44 .42 .44 .48 .57 .57 .61 .42
Net gains
(losses) (both
realized and
unrealized) .72 2.51 .30 1.40 1.44 1.87 1.90 1.58 .80 (.84)
- ------------------------------------------------------------------------------------
Total from
investment
operations 1.01 3.08 .74 1.82 1.88 2.35 2.47 2.15 1.41 (.42)
Less distributions:
Dividends
from net
investment
income (.29) (.57) (.44) (.42) (.44) (.48) (.57) (.57) (.61) (.42)
Distributions
from realized
gains (.70) (.13) (.04) (1.39) (1.15) (1.61) (1.41) - - (.14)
Total
distributions (.99) (.70) (.48) (1.81) (1.59) (2.09) (1.98) (.57) (.61) (.56)
- ------------------------------------------------------------------------------------
Net asset
value, end of
period $16.51 $16.49 $14.11 $13.85 $13.84 $13.55 $13.29 $12.80 $11.22 $10.42
- -----------------------------------------------------------------------------------
</TABLE>
<TABLE>
Ratios/supplemental data
<CAPTION>
1996** 1996 1995 1994 1993 1992 1991 1990 1989 1988
Net assets,
end of period
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(in thousands)$364,505 $316,732 $219,986 $160,706 $100,139 $72,366 $51,442 $32,725 $25,807 $21,901
Ratio of
expenses to
average daily
net assets .75%*** .78% .78% .77% .79% .80% .80%+ .80%+ .72%+ 1.03%
Ratio of net
income to
average daily
net assets 3.54%*** 3.73% 3.27% 2.83% 3.15% 3.40% 4.38% 4.54% 5.76% 3.86%
Portfolio
turnover rate
(excluding
short-term
securities) 46% 83% 143% 106% 118% 122% 71% 107% 58% 67%
Total
return++ 6.12% 22.27% 5.47% 13.30% 14.03% 17.84% 20.18% 19.37% 13.88% (3.57%)
Average
brokerage
commission
rate+++ $0.0571 -- -- -- -- -- -- -- -- --
</TABLE>
* For a share outstanding throughout the period. Rounded to the nearest
cent.
** Six months ended Oct. 31, 1996 (Unaudited).
*** Adjusted to an annual basis.
+ Commencing on April 5, 1989, IDS Life voluntarily limited total operating
expenses to 0.8% of average daily net assets. Had IDS Life not done so, the
ratio of expenses to average daily net assets would have been 0.81%, 0.82%
and 0.84% for the years ended April 30, 1991, 1990 and 1989 respectively.
++ Total return does not reflect the expenses that apply to the subaccounts
or the policies.
+++ Effective fiscal year 1997, the Fund is required to disclose an average
brokerage commission rate. The rate is calculated by dividing the total
brokerage commissions paid on applicable purchases and sales of portfolio
securities for the period by the total number of related shares purchased
and sold.
<PAGE>
IDS Life Series Fund, Inc.
Notes to financial statements
Government Securities Portfolio
Financial highlights (continued)
Fiscal period ended April 30,
Per share income and capital changes*
1996** 1996 1995 1994 1993 1992 1991 1990 1989 1988
- --------------------------------------------------------------------------------
Net asset
value,
beginning of
period $9.98 $9.85 $9.88 $10.54 $ 9.69 $9.44 $8.88 $8.97 $9.00 $9.40
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment
income .22 .61 .59 .60 .63 .66 .67 .69 .64 .64
Net gains
(losses) (both
realized and
unrealized) .29 .13 (.03) (.56) .94 .28 .56 (.09) (.03) (.40)
- --------------------------------------------------------------------------------
Total from
investment
operations .51 .74 .56 .04 1.57 .94 1.23 .60 .61 .24
- --------------------------------------------------------------------------------
Less distributions:
Dividends
from net
investment
income (.30) (.61) (.59) (.60) (.63) (.66) (.67) (.69) (.64) (.64)
Distributions
from
realized gains (.13) - - (.10) (.09) (.03) - - - -
- --------------------------------------------------------------------------------
Total
distributions (.43) (.61) (.59) (.70) (.72) (.69) (.67) (.69) (.64) (.64)
- --------------------------------------------------------------------------------
Net asset
value, end
of period $10.06 $9.98 $9.85 $ 9.88 $10.54 $9.69 $9.44 $8.88 $8.97 $9.00
- --------------------------------------------------------------------------------
<TABLE>
Ratios/supplemental data
<CAPTION>
1996** 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -------------------------------------------------------------------------------------
Net assets,
end of
period (in
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
thousands) $12,800 $12,464 $11,440 $11,185 $9,619 $7,853 $6,314 $3,184 $2,773 $2,170
Ratio of
expenses to
average
daily net
assets .80%+# 80%+ .80%+ .80%+ .80%+ .80%+ .80%+ .80%+ 1.12%+ 1.13%
Ratio of net
income to
average
daily net
assets 5.97%# 5.98% 6.02% 5.59% 6.10% 6.79% 7.24% 7.34% 7.19% 7.04%
Portfolio
turnover
rate
(excluding
short-term
securities) 12% 38% 12% 32% 15% 11% 18% 18% 14% 13%
Total
return++ 5.11% 7.45% 5.98% .16% 16.58% 10.20% 14.30% 6.50% 7.12% 2.77%
</TABLE>
* For a share outstanding throughout the period. Rounded to the nearest
cent.
** Six months ended Oct. 31, 1996 (Unaudited).
+ Commencing on April 5, 1989, IDS Life voluntarily limited total operating
expenses to 0.8% of average daily net assets. Had IDS Life not done so, the
ratio of expenses to average daily net assets would have been 0.88% for the
six month period ended Oct. 31, 1996, 0.88%, 0.87%, 0.85%, 0.88%, 0.92%,
1.08%, 1.12% and 1.21% for the years ended April 30, 1996, 1995, 1994,
1993, 1992, 1991, 1990 and 1989, respectively.
++ Total return does not reflect the expenses that apply to the subaccounts or
the policies.
# Adjusted to an annual basis.
<PAGE>
International Equity Portfolio
Financial highlights
Fiscal period ended April 30,
Per share income and capital changes*
1996*** 1996 1995**
- --------------------------------------------------------------------------------
Net asset value, $16.35 $10.29 $10.00
beginning of period
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income (.87) .11 .15
Net gains (both realized .63 6.08 .29
and unrealized)
- --------------------------------------------------------------------------------
Total from investment
operations (.24) 6.19 .44
- --------------------------------------------------------------------------------
Less distributions:
Dividends from net (1.50) (.13) (.15)
investment income
- --------------------------------------------------------------------------------
Net asset value, end of period $14.61 $16.35 $10.29
- --------------------------------------------------------------------------------
Ratios/supplemental data
1996*** 1996 1995**
- --------------------------------------------------------------------------------
Net assets, end of period $88,629 $52,061 $8,497
(in thousands)
Ratio of expenses to 1.05%+* 1.05%# 1.00%+#
average daily net assets
Ratio of net income to 1.40%+ .92% 5.66%+
average daily net assets
Portfolio turnover rate 71% 172% 40%
(excluding short-term
securities)
Total return++ (1.47%) 60.47% 4.38%
* For a share outstanding throughout the period. Rounded to the nearest
cent.
** Commencement of operations. Period from Oct. 28, 1994 to April 30, 1995.
*** Six months ended Oct. 31,1996 (Unaudited).
+ Adjusted to an annual basis.
++ Total return does not reflect the expenses that apply to the subaccounts or
the policies.
# IDS Life voluntarily limited total operating expenses. Had IDS not done so,
the ratio of expenses to average daily net assets would have been 1.21%
for the six month period ended Oct. 31, 1996, 1.32% and 1.76% for the
years ended April 30, 1996 and 1995, respectively.
<PAGE>
IDS Life Series Fund, Inc. (Percentages represent value of investments
Oct. 31, 1996 compared to net assets)
Equity Portfolio (Unaudited)
Common stocks (93.0%)
Issuer Shares Value(a)
- --------------------------------------------------------------------------------
Aerospace & defense (0.2%)
Gulfstream Aerospace 51,900 (b) 1,226,138
- --------------------------------------------------------------------------------
Automotive & related (2.0%)
Gentex 117,000 (b) 2,778,750
Miller Inds 213,000 (b) 4,978,875
Team Rental Group 140,000 (b) 2,625,000
Total 10,382,625
- --------------------------------------------------------------------------------
Banks and savings & loans (5.6%)
AmeriCredit 140,000 (b) 2,660,000
Bank of Boston 42,000 2,688,000
Bank of New York 90,000 2,981,250
Barnett Banks 80,000 3,050,000
Charter One Financial 63,000 2,736,563
Dime Bancorp 230,000 (b) 3,421,250
GreenPoint Financial 69,000 3,208,500
Magna Group 70,000 1,960,000
Southtrust 85,000 2,815,625
Washington Mutual 84,400 3,565,900
Total 29,087,088
- --------------------------------------------------------------------------------
Building materials & construction (1.0%)
Tyco Intl 110,000 5,458,750
- --------------------------------------------------------------------------------
Chemicals (2.0%)
IMC Global 80,000 3,000,000
Philip Environmental 275,000 (b) 2,853,125
Praxair 60,000 2,655,000
Safety-Kleen 138,900 2,170,312
Total 10,678,437
- --------------------------------------------------------------------------------
Communications equipment & services (1.1%)
Cascade Communications 35,000 (b) 2,541,875
Tellabs 40,000 (b) 3,405,000
Total 5,946,875
- --------------------------------------------------------------------------------
Computers & office equipment (12.8%)
Acxiom 65,000 (b) 2,551,250
American Power Conversion 48,900 (b) 1,045,238
BTG 135,000 (b) 2,328,750
Broadway & Seymour 76,200 (b) 685,800
Cellular Technical Services 130,000 (b) 2,096,250
Cisco Systems 160,000 (b) 9,900,000
CMG Information Services 95,000 (b) 950,000
Clarify 20,000 (b) 965,000
Electronic Arts 75,000 (b) 2,812,500
Equifax 95,000 2,826,250
First Data 40,000 3,190,000
Fiserv 80,300 (b) 3,081,512
MicroAge 167,000 (b) 3,340,000
Oracle 65,000 (b) 2,750,312
Parametric Technology 90,000 (b) 4,398,750
PeopleSoft 30,000 (b) 2,692,500
Pure Atria 48,000 (b) 1,308,000
Rational Software 34,000 (b) 1,304,750
Sanmina 63,000 (b) 2,882,250
SunGard Data Systems 88,000 (b) 3,762,000
Synopsys 50,000 (b) 2,250,000
3Com 69,000 (b) 4,666,125
Trusted Infomation Systems 175,000 (b) 2,362,500
Xionics Document Technologies 200,000 (b) 2,550,000
Total 66,699,737
-------------------------------------------------------------------------------
Electronics (3.5%)
Computer Products 145,000 (b) 2,863,750
Dynatech 65,000 (b) 3,213,437
Harman Intl 45,000 2,311,875
Methode Electronics 140,000 2,730,000
S3 149,000 (b) 2,812,375
Vitesse Semiconductor 43,000 (b) 1,370,625
VLSI Technology 157,000 (b) 2,708,250
Total 18,010,312
- --------------------------------------------------------------------------------
Energy (5.0%)
Anadarko Petroleum 44,000 2,799,500
Barrett Resources 80,000 (b) 3,070,000
Forcenergy 110,000 (b) 3,011,250
Houston Exploration 150,000 (b) 2,568,750
Noble Affiliates 80,000 3,480,000
Oryx Energy 141,000 (b) 2,714,250
Pogo Producing 70,000 3,106,250
Santa Fe Energy Resources 165,000 2,351,250
Swift Energy 120,000 (b) 2,940,000
Total 26,041,250
- --------------------------------------------------------------------------------
Energy equipment & services (7.6%)
Camco Intl 90,000 3,487,500
Cooper Cameron 50,000 (b) 3,193,750
ENSCO Intl 50,500 (b) 2,184,125
Falcon Drilling 143,000 (b) 5,058,625
Global Inds 165,000 (b) 2,970,000
Global Marine 260,000 4,777,500
Lone Star Technologies 162,000 (b) 2,592,000
Marine Drilling 275,000 (b) 3,815,625
Oceaneering Intl 85,000 (b) 1,530,000
Rowan Companies 150,000 (b) 3,356,250
Smith Intl 90,000 3,420,000
Transocean Offshore 50,000 3,162,500
Total 39,547,875
- --------------------------------------------------------------------------------
Financial services (4.1%)
AMRESCO 100,000 3,718,000
Franklin Resources 50,000 3,525,000
Green Tree Financial 70,000 2,773,750
Household Intl 35,000 3,097,500
MBNA 90,000 3,397,500
Phoenix Duff & Phelps 330,000 2,021,250
Winthrop Resources 100,000 2,800,000
Total 21,333,000
- --------------------------------------------------------------------------------
Furniture & appliances (1.1%)
Leggett & Platt 95,000 2,838,125
Miller (Herman) 70,000 3,018,750
Total 5,856,875
- --------------------------------------------------------------------------------
Health care (4.7%)
Amrion 140,000 (b) 3,202,500
Biogen 33,000 (b) 2,458,500
Biosource Intl 150,000 (b) 1,153,125
Boston Scientific 50,000 (b) 2,718,750
Collaborative Clinical Research 145,000 (b) 2,030,000
Emisphere Technologies 82,000 (b) 1,250,500
INCYTE Pharmaceuticals 75,000 (b) 3,037,500
Mentor 60,000 1,327,500
Physio-Control Intl 120,000 (b) 2,340,000
Vivus 70,000 (b) 2,345,000
Watson Pharmaceuticals 80,000 (b) 2,670,000
Total 24,533,375
- --------------------------------------------------------------------------------
Health care services (6.0%)
American HealthCorp 200,000 (b) 1,775,000
Bergen Brunswig 90,000 2,823,750
Capstone Pharmacy Services 225,000 (b) 2,629,687
Cardinal Health 40,000 3,140,000
HBO & Co 199,400 11,988,925
Medical Alliance 200,000 (b) 2,300,000
NCS HealthCare 60,000 (b) 1,822,500
PhyCor 67,000 (b) 2,077,000
Vivra 80,000 (b) 2,550,000
Total 31,106,862
- --------------------------------------------------------------------------------
Household products (1.1%)
Estee Lauder Companies 65,000 2,795,000
Tupperware 58,700 3,015,713
Total 5,810,713
- --------------------------------------------------------------------------------
Industrial equipment & services (2.1%)
Harnischfeger Inds 70,000 2,800,000
USA Waste Services 97,000 (b) 3,104,000
United Waste Systems 75,000 (b) 2,578,125
Wyman-Gordon 120,000 2,640,000
Total 11,122,125
- --------------------------------------------------------------------------------
Industrial transportation (0.6%)
Trico Marine Services 85,000 (b) 2,996,250
- --------------------------------------------------------------------------------
Insurance (2.2%)
ACE Limited 38,000 2,080,500
AFLAC 80,000 3,210,000
Everest Reinsurance Holdings 100,000 2,550,000
SunAmerica 36,800 1,380,000
UNUM 35,000 2,200,625
Total 11,421,125
- --------------------------------------------------------------------------------
Leisure time & entertainment (4.5%)
Acres Gaming 175,000 (b) 3,325,000
Harley-Davidson 65,000 2,933,125
Intl Game Technology 190,000 4,013,750
Marriot Intl 77,000 4,379,375
Mattel 50,000 1,443,750
National Education 180,000 (b) 2,925,000
Travis Boats & Motors 125,000 (b) 1,343,750
WMS Inds 121,000 (b) 2,964,500
Total 23,328,250
- --------------------------------------------------------------------------------
Media (3.6%)
American Radio Systems 60,000 (b) 832,650
CACI Intl 65,000 (b) 1,125,312
Consolidated Graphics 52,000 (b) 1,885,000
Desktop Data 45,000 (b) 1,068,750
Emmis Broadcasting 37,600 (b) 1,363,000
Harcourt General 70,000 3,482,500
Heftel Broadcasting 109,000 (b) 3,951,250
Outdoor Systems 65,000 (b) 2,908,750
Universal Outdoor Holdings 70,000 (b) 2,056,250
Total 18,673,462
- --------------------------------------------------------------------------------
Metals (0.6%)
Getchell Gold 28,000 (b) 1,246,000
Stillwater Mining 100,000 (b) 1,725,000
Total 2,971,000
- --------------------------------------------------------------------------------
Multi-industry conglomerates (0.7%)
Chicago Miniature Lamp 85,000 (b) 2,528,750
Employee Solutions 53,400 (b) 1,181,475
Total 3,710,225
- --------------------------------------------------------------------------------
Paper & packaging (0.5%)
Sealed Air 67,000 (b) 2,604,625
- --------------------------------------------------------------------------------
Restaurants & lodging (1.7%)
CapStar Hotel 140,000 (b) 2,520,000
HFS 50,000 3,662,500
Sonic 110,000 (b) 2,502,500
Total 8,685,000
- --------------------------------------------------------------------------------
Retail (11.4%)
American Stores 66,000 2,730,750
Circuit City Stores 75,000 2,456,250
CUC Intl 102,000 2,499,000
Dollar General 150,000 4,162,500
Dominick's Supermarkets 105,000 (b) 2,086,875
Eagle Hardware & Garden 80,000 (b) 2,290,000
Home Depot 44,000 2,409,000
Lowe's Companies 100,000 4,037,500
Melville 60,000 2,235,000
Price/Costco 140,000 (b) 2,782,500
Revco D.S. 89,000 (b) 2,681,125
Richfood Holdings 112,500 2,714,063
Rite Aid 81,000 2,754,000
Safeway 75,000 3,215,625
Saks Holdings 70,000 (b) 2,450,000
Sotheby's Holdings 165,000 2,805,000
Sports Authority 100,000 (b) 2,425,000
Stein Mart 152,500 (b) 2,725,937
TJX Companies 66,000 2,640,000
United Auto Group 20,700 (b) 711,563
Vons Companies 65,000 (b) 3,599,375
Walgreen 75,000 2,831,250
Total 59,242,313
- --------------------------------------------------------------------------------
Textiles & apparel (0.7%)
Fruit of the Loom 100,000 (b) 3,637,500
- --------------------------------------------------------------------------------
Utilities-gas (0.5%)
Sonat 57,000 2,807,250
- --------------------------------------------------------------------------------
Utilities-telephone (1.0%)
Lightbridge 205,000 (b) 1,973,125
Tel-Save Holdings 120,000 (b) 3,000,000
Total 4,973,125
- --------------------------------------------------------------------------------
Miscellaneous (0.9%)
Hvide Marine 50,000 (b) 743,750
Intl Telecommunications Data 7,700 (b) 125,125
ONTRACK Data Intl 100,000 (b) 1,412,500
Tesoro Petroleum 150,000 (b) 2,212,500
Total 4,493,875
- --------------------------------------------------------------------------------
Foreign (4.2%)
Alberta Energy 125,000 2,687,500
Amer Group 101,000 2,305,072
Belle 2,188,000 (b) 582,800
Biochem Pharma 32,000 (b) 1,364,000
Empresas ICA Sociedad ADR 149,800 1,947,400
Euro-Nevada Mining 45,000 1,329,701
Mid Ocean 58,000 2,726,000
Renaissance Energy 90,000 (b) 2,854,157
Sun Intl 52,000 (b) 2,457,000
Swire Pacific 266,000 2,347,909
Thistle Hotels 630,000 (b) 1,717,420
Total 22,318,959
- --------------------------------------------------------------------------------
Total common stocks
(Cost: $414,430,485) $484,704,996
- --------------------------------------------------------------------------------
Bond (0.3%)
Issuer Coupon Maturity Principal Value(a)
rate year
- --------------------------------------------------------------------------------
Industrial equipment &
services
Thermo Electron 4.25 2003 1,600,000 (d) 1,826,000
Total bond
(Cost: $1,600,000) $ 1,826,000
- --------------------------------------------------------------------------------
Short-term securities (6.6%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
- --------------------------------------------------------------------------------
U.S. government agency (0.7%)
Federal Home Loan Mtge Corp Disc Nts
11-13-96 5.18% $1,900,000 $ 1,896,726
11-19-96 5.20 1,400,000 1,396,374
Total 3,293,100
- --------------------------------------------------------------------------------
Certificates of deposit (1.2%)
Banc Milwaukee
11-07-96 5.28 6,400,000 6,400,009
- --------------------------------------------------------------------------------
Commercial paper (4.7%)
A.I. Credit
11-12-96 5.24 3,800,000 3,793,927
CAFCO
12-12-96 5.28 1,400,000 (c) 1,391,629
Cargill
12-06-96 5.26 1,100,000 1,094,396
Consolidated National
11-20-96 5.26 3,000,000 2,991,688
Ford Motor
12-11-96 5.30 3,300,000 3,279,554
Gannett
11-15-96 5.26 1,300,000 (c) 1,297,351
Merrill Lynch
11-18-96 5.28 2,500,000 2,493,790
Mobil Australia
12-05-96 5.27 2,600,000 (c) 2,587,108
Pioneer
11-08-96 5.27 3,000,000 2,996,938
Reed Elsevier
11-05-96 5.37 700,000 (c) 699,401
Sandoz
11-21-96 5.37 1,100,000 1,096,743
Sysco
12-03-96 5.27 800,000 (c) 796,267
Total 24,518,792
- --------------------------------------------------------------------------------
Total short-term securities
(Cost: $34,213,245) $ 34,211,901
- --------------------------------------------------------------------------------
Total investments in securities
(Cost: $450,243,730)(e) $520,742,897
- --------------------------------------------------------------------------------
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Commercial paper sold within terms of a private placement memorandum, exempt
from registration under section 4(2) of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "accredited investors."
This security has been determined to be liquid under guidelines established by
the board. (d) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. Unless otherwise
noted, this security has been determined to be liquid under guidelines
established by the board. (e) At Oct. 31, 1996, the cost of securities for
federal income tax purposes was approximately $450,244,000 and the approximate
aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $ 80,876,000
Unrealized depreciation (10,377,000)
----------------------------------------------------------------------------
Net unrealized appreciation $70,499,000
----------------------------------------------------------------------------
<PAGE>
Investments in securities
IDS Life Series Fund, Inc. (Percentages represent value of
Oct. 31, 1996 (Unaudited) investments compared to net assets)
Income Portfolio
- --------------------------------------------------------------------------------
Bonds (93.1%)
- --------------------------------------------------------------------------------
Issuer Coupon Maturity Principal Value (a)
rate year amount
- --------------------------------------------------------------------------------
U.S. government obligations (13.0%)
U.S. Treasury 7.00% 2006 $4,500,000 $4,702,275
Resolution Funding Corp 8.125 2019 3,000,000 3,443,070
Total 8,145,345
- --------------------------------------------------------------------------------
Mortgage-backed securities (34.3%)
Federal Home Loan Mtge Corp 5.50 2009 870,467 824,437
Collateralized Mtge Obligation 8.00 2020 185,000 191,012
8.50 2022 1,000,000 1,090,490
Federal Natl Mtge Assn 6.00 2011-26 3,891,934 3,703,734
6.50 2010-26 7,368,491 7,169,071
7.00 2026 4,889,878 4,799,121
Medium-term Nts 6.58 2001 2,000,000 2,029,120
Series Z 8.00 2021 424,135 (g) 432,766
Merrill Lynch Mtge Investors 8.30 2021 233,865 (c) 211,574
Morgan Stanley
Collateralized Mtge Obligation 6.59 2028 1,000,000 (c) 1,006,500
Total 21,457,825
- --------------------------------------------------------------------------------
Aerospace & defense (1.0%)
Airplanes Cl D 10.875 2019 100,000 109,000
BE Aerospace
Sr Sub Nts 9.875 2006 100,000 (c) 101,625
Goodrich (B.F.) 9.625 2001 150,000 166,890
Northrop Grumman 7.75 2016 250,000 (c) 252,460
Total 629,975
- --------------------------------------------------------------------------------
Airlines (0.6%)
Continental Airlines 6.94 2015 400,000 (h) 397,844
- --------------------------------------------------------------------------------
Banks and savings & loans (2.2%)
Barclays NA Capital 9.75 2021 300,000 343,566
First Bank System 6.875 2007 400,000 395,892
Fleet /Norstar Financial
Sub Nts 9.00 2001 200,000 220,390
Norwest
Sr Nts 6.375 2002 400,000 399,088
Total 1,358,936
- --------------------------------------------------------------------------------
Building materials & construction (0.9%)
Owens-Corning Fiberglass 9.375 2012 100,000 112,782
Pulte
Sr Nts 7.00 2003 300,000 296,019
Schuller Intl Group
Sr Nts 10.875 2004 100,000 110,500
Southdown
Sr Sub Nts 10.00 2006 50,000 (c) 51,500
Total 570,801
- --------------------------------------------------------------------------------
Communications equipment & services (1.0%)
BellSouth Telecommunications 7.00 2095 400,000 386,184
GST Telecommunications
Zero Coupon Cv 5.25 2000 20,000 (c,e) 16,800
Shared Technologies
Zero Coupon Cv 3.57 2006 250,000 (c,d) 198,125
Total 601,109
- --------------------------------------------------------------------------------
Electronics (1.3%)
Magnetek
Sr Sub Debs 10.75 1998 100,000 102,875
Reliance Electric 6.80 2006 300,000 301,530
Thomas & Betts 6.50 2006 400,000 (c) 383,940
Total 788,345
- --------------------------------------------------------------------------------
Energy (1.7%)
Clark Oil
Sr Nts 9.50 2004 100,000 102,625
Forcenergy
Sr Sub Nts 9.50 2006 50,000 50,000
Honam Oil Refinery 7.125 2005 250,000 (c) 246,503
Parker & Parsley Petroleum 8.25 2007 300,000 319,116
UNC
Sr Nts 9.125 2003 200,000 197,000
USX 9.80 2001 150,000 167,739
Total 1,082,983
- --------------------------------------------------------------------------------
Energy equipment & services (0.6%)
Foster Wheeler 6.75 2005 400,000 390,772
- --------------------------------------------------------------------------------
Financial services (2.4%)
Avco Financial Services 7.25 1999 300,000 308,190
Corporate Property Investors 7.18 2013 300,000 (c) 290,364
Countrywide Funding
Medium-term Nts 8.42 1999 300,000 314,616
First Union REIT 8.875 2003 100,000 92,500
Homeside
Sr Nts 11.25 2003 200,000 (c) 217,500
Property Trust America REIT 7.50 2014 300,000 279,756
Total 1,502,926
- --------------------------------------------------------------------------------
Food (0.2%)
Chiquita Brands Intl 9.625 2004 100,000 102,375
- --------------------------------------------------------------------------------
Furniture & appliances (0.3%)
Interface 9.50 2005 100,000 (c) 101,250
Lifestyle Furniture 10.875 2006 100,000 (c) 104,250
Total 205,500
- --------------------------------------------------------------------------------
Health care (1.1%)
Lilly (Eli) 6.77 2036 400,000 373,628
Schering-Plough
Zero Coupon 7.31 1996 300,000 (c,d) 298,785
Total 672,413
- --------------------------------------------------------------------------------
Health care services (1.7%)
Columbia-HCA Healthcare 6.91 2005 100,000 100,311
La Petite Holdings
Sr Secured Nts 9.625 2001 100,000 97,000
Manor Care
Sr Nts 7.50 2006 250,000 257,203
Merit Behavioral
Sr Sub Nts 11.50 2005 100,000 (c) 104,875
Paracelsus Healthcare
Sr Sub Nts 10.00 2006 350,000 329,000
Tenet Healthcare
Sr Sub Nts 10.125 2005 150,000 165,000
Total 1,053,389
- --------------------------------------------------------------------------------
Household products (0.3%)
First Brands 9.125 1999 100,000 102,125
Sweetheart Cup
Sr Sub Nts 10.50 2003 100,000 102,750
Total 204,875
- --------------------------------------------------------------------------------
Industrial equipment & services (0.8%)
AGCO
Sr Sub Nts 8.50 2006 100,000 (c) 101,250
Case 7.25 2005 400,000 403,532
Total 504,782
- --------------------------------------------------------------------------------
Industrial transportation (0.8%)
ERAC USA Finance 8.75 1999 300,000 (c) 318,096
Medium-term Nts
Ryder System 9.25 2001 150,000 165,890
Total 483,986
- --------------------------------------------------------------------------------
Insurance (1.4%)
American United Life 7.75 2026 200,000 (h) 190,882
Americo Life 9.25 2005 100,000 98,625
SunAmerica 8.125 2023 300,000 312,567
Medium-term Nts 7.34 2005 300,000 304,812
Total 906,886
- --------------------------------------------------------------------------------
Leisure time & entertainment (0.4%)
Bally's Park Place Funding
1st Mtge 9.25 2004 100,000 108,000
Trump Atlantic City Funding
1st Mtge 11.25 2006 150,000 142,500
Total 250,500
- --------------------------------------------------------------------------------
Media (3.6%)
Ackerley Communications
Sr Secured Nts 10.75 2003 100,000 (c) 107,000
Adelphia Communications
Sr Deb 11.875 2004 100,000 98,500
Cablevision Systems
Sr Sub Debs 10.75 2004 100,000 101,500
CAI Wireless Systems
Sr Nts 12.25 2002 100,000 97,500
Continental Cablevision
Sr Deb 8.875 2005 100,000 110,125
Cox Communications 7.625 2025 500,000 499,645
TCI Communications
Sr Debs 8.75 2015 300,000 284,652
Time Warner
Deb 9.15 2023 300,000 326,673
Time Warner Entertainment 8.375 2033 250,000 (c) 252,670
TKR Cable
Sr Debs 10.50 2007 100,000 111,017
United Artist Theatre 9.30 2015 99,176 (c) 91,614
Viacom
Sr Sub Nts 10.25 2001 100,000 108,250
Viacom Intl
Sub Deb 8.00 2006 100,000 94,250
Total 2,283,396
- --------------------------------------------------------------------------------
Metals (0.5%)
Magma Copper
Sr Sub Nts 12.00 2001 100,000 107,000
Ryerson Tull 8.50 2001 200,000 200,000
Total 307,000
- --------------------------------------------------------------------------------
Multi-industry conglomerates (1.1%)
Coltec Inds
Sr Nts 9.75 2000 100,000 104,000
Crane 7.25 1999 300,000 305,148
Fairchild 13.125 2006 65,000 64,838
Mark IV Inds 8.75 2003 100,000 102,750
Prime Succession
Sr Sub Nts 10.75 2004 85,000 (c) 91,375
Total 668,111
- --------------------------------------------------------------------------------
Paper & packaging (1.9%)
Chesapeake 9.875 2003 100,000 115,176
Federal Paperboard 10.00 2011 100,000 124,985
Gaylord Container
Sr Sub Deb 12.75 2005 100,000 109,750
Intl Paper 5.125 2012 85,000 68,732
Pope & Talbot 8.375 2013 300,000 281,289
Scotia Pacific Holding 7.95 2015 261,919 266,634
Silgan
Sr Sub Nts 11.75 2002 100,000 106,250
Warren (SD)
Sr Nts 12.00 2004 100,000 (c) 108,000
Total 1,180,816
- --------------------------------------------------------------------------------
Restaurants & lodging (0.3%)
Flagstar 10.875 2002 100,000 88,000
Hammons (John Q) Hotels
1st Mtge 8.875 2004 100,000 97,500
Total 185,500
- --------------------------------------------------------------------------------
Retail (1.8%)
American Stores 8.00 2026 500,000 516,155
Di Giorgio 12.00 2003 100,000 100,500
Pep Boys--Manny, Moe & Jack 7.00 2005 300,000 299,214
Safeway
Sr Sub Nts 10.00 2001 100,000 111,750
Stop & Shop
Sr Sub Nts 9.75 2002 75,000 82,594
Total 1,110,213
- --------------------------------------------------------------------------------
Textiles & apparel (0.5%)
Dominion Textiles
Sr Nts 9.25 2006 200,000 200,250
Polysindo 11.375 2006 100,000 106,250
Total 306,500
- --------------------------------------------------------------------------------
Utilities -- electric (4.2%)
Arizona Public Service
1st Mtge 8.00 2025 200,000 204,268
Cal Energy
Sr Nts 9.50 2006 125,000 (c) 127,344
Cleveland Electric Illuminating
1st Mtge 9.50 2005 100,000 105,479
Commonwealth Edison
1st Mtge 9.875 2020 200,000 228,686
El Paso Electric 8.90 2006 100,000 103,375
First Palo Verde Funding 10.15 2016 96,000 101,520
Houston Ind 9.375 2001 150,000 166,684
Jersey Central Power & Light 6.75 2025 300,000 268,704
Long Island Ltg
Gen Ref Mtge 9.625 2024 300,000 310,326
Midland Funding II 11.75 2005 100,000 109,250
Pennsylvania Power & Light
1st Mtge 9.25 2019 100,000 108,275
Sithe Independence Funding 9.00 2013 100,000 101,733
Texas Utilities Electric
1st Mtge 7.375 2025 200,000 191,154
1st Mtge 9.75 2021 100,000 114,156
Texas-New Mexico Power
1st Mtge 9.25 2000 100,000 104,625
Wisconsin Electric Power 6.875 2095 300,000 274,260
Total 2,619,839
- --------------------------------------------------------------------------------
Utilities -- gas (1.0%)
Columbia Gas 7.32 2010 500,000 489,255
Southwest Gas 9.75 2002 100,000 110,907
Total 600,162
- --------------------------------------------------------------------------------
Utilities -- telephone (1.5%)
MFS Communications
Zero Coupon Sr Disc Nts 10.59 2004 200,000 170,000
New York Telephone 9.375 2031 150,000 167,487
Pacific Bell 7.375 2043 300,000 293,970
US WEST Communications 7.20 2026 300,000 286,566
Total 918,023
- --------------------------------------------------------------------------------
Miscellaneous (0.7%)
Adams Outdoor Advertising
Sr Nts 10.75 2006 100,000 (h) 104,250
Banque Audi
Sr Sub 9.375 2001 100,000 (c) 100,875
Coty 10.25 2005 100,000 106,750
Outsourcing Solutions
Sr Sub Nts 11.00 2006 140,000 (c) 140,000
Total 451,875
- --------------------------------------------------------------------------------
Foreign (10.0%) (b)
Alcan Aluminum
(U.S. Dollar) 8.875 2022 200,000 216,504
Banca Italy N.Y.
(U.S. Dollar) 8.25 2007 300,000 321,543
Bank of China
(U.S. Dollar) 8.25 2014 200,000 199,236
CAF
(U.S. Dollar) 7.10 2003 300,000 300,549
China Light & Power
(U.S. Dollar) 7.50 2006 300,000 303,615
Dominion Textiles
(U.S. Dollar) 8.875 2003 100,000 99,250
Financiera Ener Nacional
(U.S. Dollar) 9.375 2006 200,000 (c) 205,000
Fresh Delmonte
(U.S. Dollar) 10.00 2003 200,000 190,500
Grupo Televisa
(U.S. Dollar) Sr Nts 11.875 2006 100,000 (c) 106,500
Imexsa Export Trust
(U.S. Dollar) 10.125 2003 200,000 (c) 205,750
Korea Electric Power
(U.S. Dollar) 8.00 2002 200,000 211,468
People's Republic of China
(U.S. Dollar) 7.375 2001 100,000 102,694
(U.S. Dollar) 9.00 2096 200,000 207,564
Petronas
(U.S. Dollar) 7.75 2015 300,000 (c) 308,355
Poland Euro
(U.S. Dollar) 3.75 2014 650,000 (f) 534,219
Quno
(U.S. Dollar) Sr Nts 9.125 2005 100,000 100,375
Reliance Inds
(U.S. Dollar) 8.125 2005 250,000 (c) 248,642
Repap New Brunswick
(U.S. Dollar) 10.625 2005 100,000 101,750
Republic of Argentina
(U.S. Dollar) Sr Sub 11.00 2006 250,000 245,625
Republic of Israel
(U.S. Dollar) 6.375 2005 200,000 189,860
Republic of Slovenia
(U.S. Dollar) 7.00 2001 260,000 (c) 263,619
Republic of South Africa
(U.S. Dollar) 9.625 1999 250,000 263,262
Telekom Malaysia
(U.S. Dollar) 7.875 2025 200,000 (c) 204,458
United Mexican States
(U.S. Dollar) 11.375 2016 100,000 99,875
Usinor Sacilor
(U.S. Dollar) 7.25 2006 500,000 503,385
WMC Finance USA
(U.S. Dollar) 7.25 2013 300,000 298,539
Zhuhai Highway
(U.S. Dollar) 11.50 2008 250,000 (c) 268,125
Total 6,300,262
- --------------------------------------------------------------------------------
Total bonds
(Cost: $56,755,297) $58,243,264
- --------------------------------------------------------------------------------
Preferred stocks & other (0.7%)
- --------------------------------------------------------------------------------
Issuer Shares Value (a)
- --------------------------------------------------------------------------------
Intermedia Communications 100 $ 5,000
Warrants Exp 06-01-00
Paxson Communications 1,700 (i) 164,050
Pay-in-kind Pfd
Time Warner 261 (c,i) 277,639
Pay-in-kind Pfd
- --------------------------------------------------------------------------------
Total preferred stocks & other
(Cost: $431,808) $446,689
- --------------------------------------------------------------------------------
Short-term securities (4.9%)
- --------------------------------------------------------------------------------
Issuer Annualized Amount Value (a)
yield on payable at
date of maturity
purchase
- --------------------------------------------------------------------------------
U.S. government agency (0.1%)
Federal Home Loan Mtge Corp Disc
11-13-96 5.18% $ 100,000 $ 99,828
- --------------------------------------------------------------------------------
Commercial paper (4.8%)
Goldman Sachs
11-26-96 5.26 1,600,000 1,594,178
PACCAR Financial
11-20-96 5.26 800,000 797,787
Pioneer
11-08-96 5.27 600,000 599,387
Total 2,991,352
- --------------------------------------------------------------------------------
Total short-term securities
(Cost: $3,091,180) $ 3,091,180
- --------------------------------------------------------------------------------
Total investment in securities
(Cost: $60,278,285)(j) $61,781,133
- --------------------------------------------------------------------------------
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) 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. (d) For
zero coupon bonds, the interest rate disclosed represents the annualized
effective yield on the date of aquisition. (e) For those zero coupon bonds, that
become coupon paying at a future date, the interest rate disclosed represents
the annualized effective yield from the date of acquisition to interest reset
date disclosed. (f) Interest rate varies either based on a predetermined
schedule or to reflect current market conditions; rate shown is the effective
rate on Oct. 31, 1996. (g) This security is a collateralized mortgage obligation
that pays no interest or principal during its initial accrual period until
payment of a previous series within the trust have been paid off. Interest is
accrued at an effective yield. (h) Identifies issues considered to be illiquid
as to their marketability (see Note 1 to the financial statements). Information
concerning such security holdings at Oct. 31, 1996, is as follows:
Security Aquisition Cost
date
- --------------------------------------------------------------------------------
Adams Outdoor Advertising
10.75% 2006 03-05-96 $100,000
American United Life*
7.75% 2026 02-13-96 200,000
Continental Airlines
6.94% 2015 01-24-96 400,000
*Represents a security sold under Rule 144A, which is exempt from registration
under the securities Act of 1933, as amended.
(i) Pay-in-kind securities are securities in which the issuer has the option to
make interest payments in cash or in additional securities. These securities
issued as interest usually have the same terms, including maturity date, as the
pay-in-kind securities. (j) At Oct. 31, 1996, the cost of securities for federal
income tax purposes was approximately $60,250,000 and the approximate aggregate
gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $1,887,000
Unrealized depreciation (356,000)
- --------------------------------------------------------------------------------
Net unrealized appreciation $1,531,000
- --------------------------------------------------------------------------------
<PAGE>
Investments in securities
IDS Life Series Fund, Inc. (Percentages represent value of
Oct. 31, 1996 (Unaudited) investments compared to net assets)
Money Market Portfolio
- --------------------------------------------------------------------------------
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
- --------------------------------------------------------------------------------
Commercial paper (89.7%)
- --------------------------------------------------------------------------------
Banks and savings & loans
(10.1%)
Dresdner U.S. Finance
12-09-96 5.29 % $800,000 $795,567
Fleet Funding
11-21-96 5.27 500,000 (b) 498,542
Kredietbank North
American Finance
01-16-97 5.38 700,000 692,145
Total 1,986,254
- --------------------------------------------------------------------------------
Broker dealers (6.1%)
Merrill Lynch
11-21-96 5.29 600,000 598,247
Morgan Stanley Group
01-23-97 5.39 600,000 592,641
Total 1,190,888
- --------------------------------------------------------------------------------
Energy (4.6%)
Chevron Transportation
12-10-96 5.29 900,000 (b) 894,871
- --------------------------------------------------------------------------------
Financial services (21.3%)
A.I. Credit
11-12-96 5.42 900,000 898,520
Associates
North America
12-12-96 5.29 700,000 695,807
CIT Group Holdings
12-03-96 5.28 900,000 895,792
Dean Witter
01-24-97 5.37 600,000 592,580
General Electric
Capital
12-02-96 5.28 800,000 796,383
Household Finance
11-19-96 5.28 300,000 299,212
Total 4,178,294
- --------------------------------------------------------------------------------
Food (5.6%)
CPC Intl
11-12-96 5.46 300,000 (b) 299,504
01-27-97 5.38 300,000 (b) 296,150
Pioneer Hi-Bred Intl
11-08-96 5.27 500,000 499,490
Total 1,095,144
- --------------------------------------------------------------------------------
Health care services
(3.5%)
Sandoz
12-12-96 5.28 700,000 (b) 695,815
- --------------------------------------------------------------------------------
Household products (4.0%)
Colgate-Palmolive
12-23-96 5.29 800,000 (b) 793,933
- --------------------------------------------------------------------------------
Industrial transportation
(7.6%)
Consolidated Rail
11-04-96 5.41 600,000 (b) 599,732
Norfolk Southern
11-07-96 5.45 900,000 (b) 899,190
Total 1,498,922
- --------------------------------------------------------------------------------
Insurance (19.8%)
American General
Finance
12-19-96 5.29 900,000 893,700
Aon
12-11-96 5.30 600,000 596,493
Pacific Mutual Life
11-18-96 5.26 900,000 897,773
SAFECO Credit
12-17-96 5.30 900,000 893,963
USAA Capital
12-02-96 5.32 600,000 597,272
Total 3,879,201
- --------------------------------------------------------------------------------
Media (3.0%)
Reed Elsevier
12-04-96 5.26 600,000 (b) 597,118
- --------------------------------------------------------------------------------
Utilities -- gas (4.1%)
Gateway Fuel
12-09-96 5.27 800,000 795,575
- --------------------------------------------------------------------------------
Total commercial paper
(Cost: $17,606,015) $17,606,015
- --------------------------------------------------------------------------------
Letters of credit (8.1%)
- --------------------------------------------------------------------------------
Bank of America -
AES Barbers Point
11-21-96 5.26 800,000 797,671
First Chicago Financial
11-05-96 5.27 800,000 799,534
- --------------------------------------------------------------------------------
Total letters of credit
(Cost: $1,597,205) 1,597,205
- --------------------------------------------------------------------------------
Total investments in
securities
(Cost: $19,203,220)(c) $19,203,220
- --------------------------------------------------------------------------------
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) 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.
(c) At Oct. 31, 1996, this also represents the cost of securities for federal
income tax purposes.
<PAGE>
IDS Life Series Fund, Inc. (Percentages represent value of
Oct. 31, 1996 (Unaudited) investments compared to total net assets)
Managed Portfolio
Common stocks (48.4%)
Issuer Shares Value(a)
- --------------------------------------------------------------------------------
Aerospace & defense (3.7%)
Boeing 43,000 $ 4,101,125
General Motors, Cl H 40,000 2,135,000
Lockheed Martin 45,000 4,033,125
Precision Castparts 38,000 1,776,500
United Technologies 12,800 1,648,000
Total 13,693,750
- --------------------------------------------------------------------------------
Airlines (0.2%)
Southwest Airlines 37,000 832,500
- --------------------------------------------------------------------------------
Automotive & related (0.8%)
Snap-On 89,000 2,859,125
- --------------------------------------------------------------------------------
Banks and savings & loans (2.8%)
Banc One 18,700 792,412
BankAmerica 13,000 1,189,500
Citicorp 29,800 2,950,200
First Union 28,500 2,073,375
Washington Mutual 73,000 3,084,250
Total 10,089,737
- --------------------------------------------------------------------------------
Beverages & tobacco (0.9%)
Coca-Cola 19,800 999,900
Dimon 63,000 1,197,000
Philip Morris 12,000 1,111,500
Total 3,308,400
- --------------------------------------------------------------------------------
Building materials & construction (1.9%)
Sherwin-Williams 40,000 2,005,000
Tyco Intl 88,300 4,381,887
Weyerhaeuser 14,000 642,250
Total 7,029,137
- --------------------------------------------------------------------------------
Chemicals (2.2%)
IMC Global 20,000 750,000
Morton Intl 49,000 1,929,375
Pall 40,000 1,025,000
Praxair 95,000 4,203,750
Total 7,908,125
- --------------------------------------------------------------------------------
Computers & office equipment (4.4%)
Checkfree 81,300 (b) 1,483,725
Cisco Systems 30,000 (b) 1,856,250
Compaq Computer 29,000 (b) 2,019,125
Computer Sciences 39,000 (b) 2,895,750
First Data 20,000 1,595,000
Intl Business Machines 15,000 1,935,000
National Processing 4,300 (b) 81,700
Oracle 45,000 (b) 1,904,062
Sterling Commerce 48,000 (b) 1,350,000
Sterling Software 27,000 (b) 877,500
Total 15,998,112
- --------------------------------------------------------------------------------
Electronics (1.0%)
Intel 33,000 3,625,875
- --------------------------------------------------------------------------------
Energy (0.5%)
Amoco 25,000 1,893,750
- --------------------------------------------------------------------------------
Energy equipment & services (1.3%)
Baker Hughes 23,000 819,375
Input/Output 70,000 (b) 2,082,500
Reading & Bates 25,000 (b) 718,750
Transocean Offshore 15,000 948,750
Total 4,569,375
- --------------------------------------------------------------------------------
Financial services (1.0%)
Green Tree Financial 22,000 871,750
Travelers Group 51,000 2,766,750
Total 3,638,500
- --------------------------------------------------------------------------------
Food (0.4%)
Sara Lee 41,000 1,455,500
- --------------------------------------------------------------------------------
Health care (5.1%)
American Home Products 51,000 3,123,750
Amgen 33,000 (b) 2,023,313
Baxter Intl 46,000 1,914,750
Guidant 35,000 1,614,375
Johnson & Johnson 45,400 2,235,950
Merck 54,000 4,002,750
Pfizer 24,500 2,027,375
Schering Plough 25,600 1,638,400
Total 18,580,663
- --------------------------------------------------------------------------------
Health care services (1.3%)
Columbia Healthcare 70,000 2,502,500
Service Corp Intl 82,000 2,337,000
Total 4,839,500
- --------------------------------------------------------------------------------
Household products (2.0%)
Avon Products 54,000 2,929,500
Clorox 10,000 1,091,250
Revlon 77,000 (b) 2,810,500
Tambrands 10,000 426,250
Total 7,257,500
- --------------------------------------------------------------------------------
Industrial equipment & services (1.6%)
AGCO 54,000 1,370,250
Greenfield Inds 52,000 1,378,000
Pentair 66,000 1,666,500
USA Waste Services 42,000 (b) 1,344,000
Total 5,758,750
- --------------------------------------------------------------------------------
Insurance (1.9%)
Risk Capital Holdings 54,400 (b) 979,200
Travelers/Aetna Property Casualty 72,000 2,160,000
UNUM 59,800 3,759,925
Total 6,899,125
- --------------------------------------------------------------------------------
Media (1.8%)
Sinclair Broadcasting 21,500 (b) 655,750
Liberty Media Cl A 56,250 (b) 1,448,438
Time Warner 108,000 4,023,000
Univision Communications 13,200 (b) 445,500
Total 6,572,688
- --------------------------------------------------------------------------------
Metals (1.3%)
ALCOA 20,500 1,201,813
UCAR Intl 91,000 (b) 3,560,375
Total 4,762,188
- --------------------------------------------------------------------------------
Multi-industry conglomerates (2.1%)
Alco Standard 66,600 3,088,575
Emerson Electric 50,000 4,450,000
Total 7,538,575
- --------------------------------------------------------------------------------
Paper & packaging (1.9%)
Crown Cork & Seal 47,500 2,280,000
James River 78,000 2,457,000
Kimberly-Clark 24,000 2,238,000
Total 6,975,000
- --------------------------------------------------------------------------------
Restaurants & lodging (0.9%)
Boston Chicken 25,000 (b) 909,375
La Quinta Inns 99,000 1,980,000
Wyndham Hotel 23,600 (b) 448,400
Total 3,337,775
- --------------------------------------------------------------------------------
Retail (2.8%)
Albertson's 45,000 1,546,875
Barnes & Noble 36,000 (b) 1,192,500
Dollar General 10,000 277,500
Home Depot 33,000 1,806,750
Kohl's 37,000 (b) 1,332,000
Rite Aid 71,500 2,431,000
Saks Holdings 43,100 (b) 1,508,500
Total 10,095,125
- --------------------------------------------------------------------------------
Utilities -- electric (0.8%)
CMS Energy 51,000 1,612,875
FPL Group 30,000 1,380,000
Total 2,992,875
- --------------------------------------------------------------------------------
Utilities -- telephone (0.2%)
AirTouch Communications 32,000 (b) 836,000
- --------------------------------------------------------------------------------
Miscellaneous (0.6%)
Federal Signal 90,000 2,317,500
- --------------------------------------------------------------------------------
Foreign (3.0%)
Mutual Risk Management 78,333 2,506,656
Nevsun Resources
with special warrants 80,000 (b) 608,886
Petroleum Geo-Services ADR 25,000 (b) 856,250
Telecomunicacoes Brasileiras-Telebras ADR 41,500 3,091,750
Telefonica de Espana 34,000 2,048,500
Toyota Motor ADR 38,000 1,805,000
Total 10,917,042
- --------------------------------------------------------------------------------
Total common stocks
(Cost: $142,044,474) $176,582,192
- --------------------------------------------------------------------------------
Bonds (37.5.%)
Issuer Coupon Maturity Principal Value(a)
rate year amount
- --------------------------------------------------------------------------------
U.S. government obligations (11.4%)
U.S. Treasury 5.625% 2000 $ 8,100,000 $ 7,985,223
5.875 1998 6,000,000 6,015,960
6.25 2023 8,050,000 7,562,814
6.50 2005 9,800,000 9,909,760
7.125 1999 2,850,000 (l) 2,941,998
7.50 2001-2016 1,085,000 1,175,242
7.75 2000 3,700,000 3,894,768
10.375 2012 1,600,000 2,075,552
Total 41,561,317
- --------------------------------------------------------------------------------
Mortgage-backed securities (6.9%)
Federal Home Loan Mtge Corp 8.0 2022-2024 1,081,218 1,112,077
Federal Natl Mtge Assn 5.50 2009 1,848,458 1,751,858
6.00 2024 1,818,306 1,711,898
6.50 2010-2025 2,841,659 2,778,415
7.00 2025-2026 5,328,900 5,234,210
7.50 2025-2026 5,910,057 5,928,756
8.00 2022 228,307 233,087
8.50 2023-2026 4,203,196 4,354,953
9.00 2024 163,347 173,536
Series Z 6.50 2023 300,405 (j) 240,008
7.00 2016 1,345,325 (j) 1,334,226
Merrill Lynch Mtge Investors 8.29 2021 374,183 (h) 338,519
Total 25,191,543
- --------------------------------------------------------------------------------
Financial (2.9%)
Banks and savings & loans (0.7%)
First Bank System 6.875 2007 1,000,000 989,730
First Nationwide Bank 10.625 2003 390,000 (h) 410,475
Norwest
Medium-term Nts 6.375 2002 800,000 798,176
Riggs Natl
Sub Nts 8.50 2006 100,000 103,250
Total 2,301,631
- --------------------------------------------------------------------------------
Financial services (1.2%)
AVCO Financial 7.25 1999 250,000 256,825
Corporate Property Investors 7.18 2013 500,000 (h) 483,940
First Union REIT 8.875 2003 300,000 277,500
Homeside 11.25 2003 750,000 (h) 815,625
KFW Intl Finance 8.00 2010 250,000 276,150
Olympic Financial 13.00 2000 800,000 884,000
Property Trust of America REIT7.50 2014 750,000 699,390
Salomon Brothers 6.75 2006 500,000 474,380
Standard Credit Card Trust 8.625 2002 250,000 251,335
Total 4,419,145
- --------------------------------------------------------------------------------
Insurance (1.0%)
American United Life 7.75 2026 500,000 (g) 477,205
Americo Life 9.25 2005 600,000 591,750
General American Life
Sub Cap Nts 7.625 2024 500,000 (h) 457,015
Leucadia Natl 7.875 2006 1,000,000 1,009,860
New England Mutual
Credit Sensitive Nts 7.875 2024 250,000 (h) 253,475
Principal Mutual 8.00 2044 250,000 (h) 250,565
SunAmerica
Medium-term Nts 7.34 2005 700,000 711,228
Total 3,751,098
- --------------------------------------------------------------------------------
Industrial (10.9%)
Aerospace & defense (0.5%)
Alliant Techsystem
Sr Sub 11.75 2003 300,000 329,250
BE Aerospace
Sr Sub 9.875 2006 400,000 406,500
Northrop Grumman 7.75 2016 500,000 504,920
Sequa 9.625 1999 500,000 517,500
Total 1,758,170
- --------------------------------------------------------------------------------
Airlines (0.4%)
AMR 9.75 2021 800,000 958,680
Continental Air Lines 6.94 2015 500,000 (g) 497,305
Total 1,455,985
- --------------------------------------------------------------------------------
Automotive & related (--%)
GMAC 8.375 1997 65,000 65,869
- --------------------------------------------------------------------------------
Building materials & construction (0.4%)
AAF-McQuay
Sr Nts 8.875 2003 500,000 495,625
Pulte 7.00 2003 500,000 493,365
Schuller Intl Group 10.875 2004 250,000 276,250
Total 1,265,240
- --------------------------------------------------------------------------------
Communications equipment & services (0.2%)
Geotek Communications
Cv 12.00 2001 250,000 (g) 280,000
GST Telecommunications
Zero Coupon Cv 5.25 2000 50,000(e,h) 42,000
TCI Communications
Cv Sr Deb 4.50 2006 250,000 203,125
Total 525,125
- --------------------------------------------------------------------------------
Computers & office equipment (0.2%)
Anacomp
Pay-in-kind 13.00 2002 750,000 (k) 791,250
- --------------------------------------------------------------------------------
Electronics (0.3%)
Reliance Electric 6.80 2003 500,000 502,550
Thomas & Betts 6.50 2006 400,000 383,940
Total 886,490
- --------------------------------------------------------------------------------
Energy (0.9%)
Forcenergy 9.50 2006 350,000 (m) 350,000
Honam Oil Refinery 7.125 2005 1,000,000 (h) 986,010
HS Resources 9.875 2003 500,000 498,750
Parker & Parsley 8.25 2007 500,000 531,860
UNC 9.125 2003 1,000,000 985,000
Total 3,351,620
- --------------------------------------------------------------------------------
Energy equipment & services (0.3%)
Foster Wheeler 6.75 2005 1,000,000 976,930
- --------------------------------------------------------------------------------
Food (0.2%)
Twin Labs
Sr Sub Nts 10.25 2006 750,000 (g) 760,815
- --------------------------------------------------------------------------------
Furniture & appliances (0.1%)
Interface
Sr Sub Nts 9.50 2005 400,000 405,000
- --------------------------------------------------------------------------------
Health care (0.2%)
Lilly (Eli) 6.77 2036 500,000 467,035
Schering-Plough
Zero Coupon 7.31 1996 350,000(d,h) 348,582
Total 815,617
- --------------------------------------------------------------------------------
Health care services (0.9%)
Columbia/HCA Healthcare 7.69 2025 400,000 410,764
Merit Behavioral Care
Sr Sub Nts 11.50 2005 350,000 (h) 367,063
Owens & Minor
Sr Sub Nts 10.875 2006 400,000 418,000
Paracelsus Healthcare 10.00 2006 1,000,000 940,000
Tenet Healthcare
Sr Sub Nts 10.125 2005 1,000,000 1,100,000
Total 3,235,827
- --------------------------------------------------------------------------------
Industrial equipment & services (0.4%)
Case 7.25 2005 850,000 857,506
Specialty Equipment
Sr Sub Deb 11.375 2003 500,000 533,125
Total 1,390,631
- --------------------------------------------------------------------------------
Leisure time & entertainment (0.5%)
Coast Hotels & Casino
Series B 13.00 2002 500,000 (h) 539,375
Trump AC Funding 11.25 2006 750,000 712,500
United Artists Theatre 9.30 2015 743,826 (h) 687,109
Total 1,938,984
- --------------------------------------------------------------------------------
Media (2.1%)
Ackerley Communications
Sr Secured Nts 10.75 2003 400,000 (h) 428,000
Adelphia Communications
Pay-in-kind 9.50 2004 194 (k) 171
American Telecasting
Zero Coupon Cv 9.43 2000 500,000(e,g) 306,250
Cablevision Systems 9.25 2005 750,000 723,750
Continental Cablevision
Sr Deb 8.875 2005 250,000 275,312
Cox Communication 7.625 2025 500,000 499,645
Lamar Advertising 11.00 2003 500,000 555,000
Lenfest Communications
Sr Nts 8.375 2005 1,000,000 915,000
News American Holdings 7.50 2000 250,000 256,355
Outdoor Systems 9.375 2006 500,000 497,500
People's Choice TV
Zero Coupon Cv 10.43 2000 250,000 (e) 131,250
Time Warner Entertainment 8.375 2033 500,000 505,340
Turner Broadcasting System
Sr Nts 8.375 2013 250,000 252,305
Universal Outdoor 9.75 2006 500,000 495,000
Viacom 7.00 2003 500,000 473,030
8.00 2006 1,500,000 1,413,750
Total 7,727,658
- --------------------------------------------------------------------------------
Metals (0.4%)
Bar Technologies 13.50 2001 500,000 (h) 505,000
Ryerson Tull 8.50 2001 1,000,000 1,000,000
Total 1,505,000
- --------------------------------------------------------------------------------
Multi-industry conglomerates (0.3%)
Crane 7.25 1999 250,000 254,290
Mark IV Inds 8.75 2003 400,000 411,000
Prime Succession Acquisition 10.75 2004 420,000 (h) 451,500
Total 1,116,790
- --------------------------------------------------------------------------------
Paper & packaging (0.8%)
Federal Paperboard 10.00 2011 250,000 312,462
Gaylord Container
Zero Coupon Cv 11.23 1998 250,000 (e) 274,375
International Paper 5.125 2012 250,000 202,153
Plastic Container 10.75 2001 600,000 625,500
Pope and Talbot 8.375 2013 400,000 375,052
Scotia Pacific Holding 7.95 2015 261,919 266,634
Silgan
Sr Sub Nts 11.75 2002 500,000 531,250
Warren (SD)
Sr Nts 12.00 2004 400,000 (h) 432,000
Total 3,019,426
- --------------------------------------------------------------------------------
Retail (0.7%)
American Stores 8.00 2026 1,000,000 1,032,310
Kash N' Karry
Pay-in-kind 11.50 2003 748,063 (k) 749,933
Pep Boys - Manny, Moe & Jack 7.00 2005 500,000 498,690
White Rose Foods
Zero Coupon 26.29 1998 650,000 (d) 503,750
Total 2,784,683
- --------------------------------------------------------------------------------
Textiles & apparel (0.1%)
Dominion Textile USA 9.25 2006 300,000 300,375
- --------------------------------------------------------------------------------
Miscellaneous (1.0%)
Adams Outdoor Advertising
Sr Nts 10.75 2006 750,000 (g) 781,875
Coty 10.25 2005 500,000 533,750
KinderKare Learning Center 10.375 2001 250,000 273,750
La Petite Holdings 9.625 2001 600,000 582,000
Norcal Waste Systems
Sr Nts 12.75 2005 500,000(h,i) 544,375
Outsourcing Solutions 11.00 2006 375,000(h,m) 375,000
Pierce Leahy 11.125 2006 625,000 (h) 664,063
Total 3,754,813
- --------------------------------------------------------------------------------
Utilities (2.3%)
Electric (1.6%)
Alabama Power 9.00 2024 300,000 324,537
Cal Energy 9.50 2006 350,000 (h) 356,562
California Energy 9.875 2003 250,000 261,562
Cleveland Electric 9.50 2005 250,000 263,697
Commonwealth Edison 8.375 2023 250,000 256,003
El Paso Electric
1st Mtge 8.90 2006 650,000 671,938
First Palo Verde Funding 10.15 2016 192,000 203,040
Jersey Central Power & Light 6.75 2025 1,000,000 895,680
Long Island Lighting 9.75 2021 300,000 310,071
Niagara Mohawk Power 7.75 2006 700,000 646,863
RGS Funding I & M
Sale Lease-Back Obligation 9.82 2022 208,739 254,066
Salton Sea 7.84 2010 300,000 (h) 304,986
Sithe Independence Funding 9.00 2013 150,000 (h) 152,600
Texas-New Mexico Power
1st Mtge 9.25 2000 400,000 418,500
Wisconsin Electric Power 6.875 2095 400,000 365,680
Total 5,685,785
- --------------------------------------------------------------------------------
Gas (0.2%)
Coastal 10.25 2004 300,000 357,030
Trans Texas Gas
Sr Nts 11.50 2002 500,000 527,500
Total 884,530
- --------------------------------------------------------------------------------
Telephone (0.5%)
GTE 9.375 2000 400,000 440,385
Mobile Telecommunication
Technologies 13.50 2002 500,000 508,750
Mountain States Tel & Tel 5.50 2005 80,000 71,975
New England Tel & Tel 6.375 2008 70,000 67,162
New York Telephone 4.875 2006 130,000 112,897
U S WEST Communications 7.20 2026 700,000 668,654
Total 1,869,823
- --------------------------------------------------------------------------------
Foreign (3.1%)(c)
Banca Italy N.Y.
(U.S. Dollar) 8.25 2007 500,000 535,905
Bank of China
(U.S. Dollar) 8.25 2014 300,000 298,854
Banque Audi SAL
(U.S. Dollar) 9.375 2001 250,000(h,m) 252,187
Brazil DCB
(U.S. Dollar) Floater 6.563 2012 600,000 (i) 428,256
China Light & Power
(U.S. Dollar) 7.50 2006 500,000 506,025
Clearnet Communications
(U.S. Dollar) Zero Coupon 15.67 2000 300,000 (e) 189,000
Financiera Ener Nacional
(U.S. Dollar) 9.375 2006 500,000 (h) 512,500
Fresh Del Monte
(U.S. Dollar) 10.00 2003 500,000 476,250
Govt Trust Certificate Israel
(U.S. Dollar) 9.25 2001 275,000 295,223
Grupo Televisa
(U.S. Dollar) Sr Nts 11.875 2006 650,000 692,250
Imexsa Export Trust
(U.S. Dollar) 10.125 2003 500,000 (h) 514,375
Korea Electric Power
(U.S. Dollar) 7.75 2013 250,000 255,578
Petronas
(U.S. Dollar) 7.75 2015 850,000 (h) 873,673
Poland PDI
(U.S. Dollar) 3.75 2014 510,000 419,156
Pueblo Xtra Intl
(U.S. Dollar)Sr Nts 9.50 2003 400,000 360,000
Quno
(U.S. Dollar) 9.125 2005 400,000 401,500
Reliance Inds
(U.S. Dollar) 8.125 2005 250,000 (h) 248,643
Republic of Argentina
(U.S. Dollar) 11.00 2006 500,000 (i) 491,250
Republic of Italy
(U.S. Dollar) 6.875 2023 350,000 330,589
Republic of Slovenia
(U.S. Dollar) 7.00 2001 410,000 (h) 415,707
Rogers Cable System
(Canadian Dollar) 7.086 2014 600,000 429,803
Rogers Cantel Mobile
(U.S. Dollar) 9.375 2008 450,000 454,500
State of Israel
(U.S. Dollar) 6.375 2005 350,000 332,255
Telekom Malaysia
(U.S. Dollar) 7.875 2025 425,000 (h) 434,473
United Mexican States
(U.S. Dollar) 11.375 2016 650,000 649,187
Zhuhai Highway
(U.S. Dollar) 11.50 2008 500,000 (h) 536,250
Total 11,333,389
- --------------------------------------------------------------------------------
Total bonds
(Cost: $134,501,729) $136,830,559
- --------------------------------------------------------------------------------
Preferred stocks & other (1.0%)
Issuer Shares Value(a)
- --------------------------------------------------------------------------------
American Radio Systems
7% Cv Pfd 20,500 (h) $1,004,500
Bar Technologies
Warrants 500 (h) 27,500
Cablevision Systems
Pay-in-kind 5,357(h,k) 488,826
11.125% Pfd
Clearnet Communications
Warrants 990 (h) 7,920
First Nationwide Bank
11.50% 1,000 114,750
Greenfield Capital Trust
3% Cm Cv Pfd 25,000 (h) 1,118,750
Harvard Inds
Pay-in-kind 20,000 (k) 422,500
14.25% Pfd
Paxson Communications
Pay-in-kind 3,400 (k) 328,100
12.50% Pfd
- --------------------------------------------------------------------------------
Total preferred stocks & other
(Cost: $3,700,356) $3,512,846
- --------------------------------------------------------------------------------
Short-term securities (12.6%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
- --------------------------------------------------------------------------------
U.S. government agency (1.3%)
Federal Natl Mtge Assn Disc Nt
11-08-96 5.17% $4,800,000 $4,795,193
- --------------------------------------------------------------------------------
Commercial paper (11.3%)
BBV Finance Delaware
11-27-96 5.26 1,300,000 1,295,080
Commerzbank U.S. Finance
11-07-96 5.27 3,500,000 3,496,937
Consolidated Natural Gas
11-20-96 5.26 4,900,000 4,886,423
Dean Witter
11-04-96 5.31 1,600,000 1,599,295
11-27-96 5.27 3,800,000 3,785,592
Fleet Funding
11-19-96 5.28 3,500,000 (f) 3,490,812
12-05-96 5.28 2,200,000 (f) 2,189,092
Ford Motor Credit
11-20-96 5.35 1,000,000 995,700
GE Capital
11-25-96 5.28 2,200,000 2,192,300
Merrill Lynch
11-18-96 5.28 5,100,000 5,087,332
Metlife Funding
11-01-96 5.32 400,000 400,000
12-10-96 5.28 4,000,000 3,977,293
Pioneer Hi-Bred Intl
11-21-96 5.26 3,000,000 2,991,267
Sysco
12-03-96 5.27 1,100,000 (f) 1,094,867
Toyota Motor
12-05-96 5.32 1,300,000 1,292,909
USAA Capital
12-11-96 5.27 2,200,000 2,187,191
Total 40,962,090
- --------------------------------------------------------------------------------
Total short-term securities
(Cost: $45,759,400) $45,757,283
- --------------------------------------------------------------------------------
Total investments in securities
(Cost: $326,005,959)(n) $362,682,880
- --------------------------------------------------------------------------------
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign securities values are stated in U.S. dollars. For debt securities,
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 those zero coupon bonds that become coupon
paying at a future date, 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."
This security has been determined to be liquid under guidelines established by
the board. (g) Identifies issues considered to be illiquid as to their
marketability (see Note 1 to the financial statements). Information concerning
such security holdings at Oct. 31, 1996, is as follows:
Security Acquisition Cost
date
---------------------------------------------------------------------------
Adams Outdoor Advertising
10.75% 2006 03-05-96 thru 09-17-96 750,000
American Telecasting
9.43% 2000 03-07-96 500,000
American United Life*
7.75% 2026 02-13-96 500,000
Continental Air Lines
6.94% 2015 01-24-95 500,000
Geotek Communications*
12% 2001 03-04-96 250,000
Twin Labs
10.25% 2006 10-25-96 750,000
*Represents a security sold under Rule144A, which is exempt from registration
under the Securities Act of 1933, as amended.
(h) 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.
(i) Interest rate varies either based on a predetermined schedule or to
reflect current market conditions; rate shown is the effective rate on
Oct. 31, 1996.
(j) This security is a collateralized mortgage obligation that pays no interest
or principal during its initial accrual period until payment of a previous
series within the trust have been paid off. Interest is accrued at an effective
yield.
(k) Pay-in-kind securities are securities in which the issuer has the option
to make interest payments in cash or in additional securities. These
securities issued as interest usually have the same terms, including maturity
date, as the pay-in-kind securities. (l) Partially pledged as inital deposit on
the following open stock index futures purchase contracts (see Note 5 to the
financial statements):
Type of security Contracts
- --------------------------------------------------------------------------------
S & P 500, Dec. 1996 38
(m) At Oct. 31, 1996, the cost of securities purchased, including interest
purchased, on a when-issued basis was $975,000.
(n) At Oct. 31, 1996, the cost of securities for federal income tax purposes
was approximately $325,868,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $39,085,000
Unrealized depreciation (2,270,000)
- --------------------------------------------------------------------------------
Net unrealized appreciation $36,815,000
- --------------------------------------------------------------------------------
<PAGE>
Investments in securities
IDS Life Series Fund, Inc. (Percentages represent value of investments
Oct. 31, 1996 (Unaudited) compared to total net assets)
Government Securities Portfolio
Bonds (98.5%)
Issuer Coupon Maturity Principal Value (a)
rate year amount
U.S. government
obligations (70.5%)
U.S. Treasury 6.125% 1997-98 $1,050,000 $1,056,772
6.50 2005 300,000 303,360
7.50 2024 140,000 153,696
7.75 2001 2,210,000 2,351,462
8.875 1999 2,450,000 2,608,932
10.375 2012 750,000 972,915
Resolution Funding Corp 8.125 2019 400,000 459,076
Zero Coupon 7.18 2009 2,660,000 (b) 1,117,094
Total 9,023,307
- --------------------------------------------------------------------------------
Mortgage backed securities (28.0%)
Federal Natl Mtge Assn 6.50 2010 428,471 424,323
6.82 2005 1,100,000 1,117,292
7.00 2025 283,217 278,315
8.50 2023-25 965,364 1,005,265
9.00 2023 188,560 200,026
Govt Natl Mtge Assn 7.50 2025 473,495 476,459
8.00 2017 82,557 85,871
Total 3,587,551
- --------------------------------------------------------------------------------
Total investments in securities
(Cost: $12,273,225)(c) $12,610,858
- --------------------------------------------------------------------------------
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) For zero coupon bonds, the interest rate disclosed represents the annualized
effective yield on the date of acquisition.
(c) At Oct. 31, 1996, the cost of securities for federal income tax purposes was
approximately $12,272,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $378,000
Unrealized depreciation (39,000)
---------------------------------------------------------------------------
Net unrealized appreciation $339,000
---------------------------------------------------------------------------
<PAGE>
IDS Life Series Fund, Inc. (Percentages represent value of
Oct. 31, 1996 (Unaudited) investments compared to net assets)
International Equity Portfolio
Common stocks (78.4%)
Issuer Shares Value(a)
- --------------------------------------------------------------------------------
Argentina (2.4%)
Metals (1.1%)
Siderar 45,000(b,c) $ 956,250
- --------------------------------------------------------------------------------
Retail (1.3%)
Disco 50,000 1,125,000
- --------------------------------------------------------------------------------
Australia (2.8%)
Insurance (1.0%)
Reinsurance Australia 300,000 898,524
- --------------------------------------------------------------------------------
Metals (0.9%)
Pasminco 500,000 (b) 776,502
- --------------------------------------------------------------------------------
Textiles & apparel (0.9%)
Wolford 6,000 790,918
- --------------------------------------------------------------------------------
Austria (2.6%)
Building materials & construction (1.0%)
VA Technology 6,000 838,767
- --------------------------------------------------------------------------------
Chemicals (0.8%)
BWT 6,500 737,909
- --------------------------------------------------------------------------------
Metals (0.8%)
Boehler-Uddeholm 10,000 (c) 747,760
- --------------------------------------------------------------------------------
Bahamas (2.9%)
Restaurants & lodging
Sun Intl Hotels 55,000 (b) 2,598,750
- --------------------------------------------------------------------------------
Brazil (3.3%)
Communications equipment & services (0.8%)
Telebras ADR 10,000 745,000
- --------------------------------------------------------------------------------
Media (1.2%)
TV Filme 70,000 (b) 1,050,000
- --------------------------------------------------------------------------------
Retail (0.6%)
Lojas Arapua ADR 30,000 (c) 560,640
- --------------------------------------------------------------------------------
Miscellaneous (0.7%)
Brazil Realty 30,000 611,250
- --------------------------------------------------------------------------------
Canada (11.6%)
Chemicals (2.2%)
Agrium 75,000 1,004,552
Asia-Pacific Res 125,000 (b) 970,040
Total 1,974,592
- --------------------------------------------------------------------------------
Energy (0.9%)
Renaissance Energy 25,000 (b) 792,821
- --------------------------------------------------------------------------------
Health care (1.6%)
Biovail 50,000 (b) 1,462,500
- --------------------------------------------------------------------------------
Metals (5.4%)
American Mineral Fields 35,000 129,016
Argosy Mining 200,000 (b) 241,762
Banro Units 20,000 (b) 87,676
Barrick Gold 14,259 372,516
Dayak Goldfield 250,000(b,c) 289,145
Dayton Mining 100,000 (b) 645,450
Java Gold 250,000(b,c) 279,817
Nevsun Resources 105,000 (b) 799,163
Nevsun Resources Special Warrants 70,000 (b) 532,776
Oliver Gold 200,000 (b) 738,722
TVI Televisao Independente 180,000(b,c) 201,469
TVI Pacific 95,000 (b) 106,331
Williams Resources 270,000 (c) 326,379
Total 4,750,222
- --------------------------------------------------------------------------------
Miscellaneous (1.5%)
Bruncor 40,000 856,620
Golden Bear 300,000 (b) 452,190
Total 1,308,810
- --------------------------------------------------------------------------------
Chile (1.6%)
Chemicals
Quimica Minera Chile ADR 25,000 1,437,500
- --------------------------------------------------------------------------------
Denmark (0.6%)
Multi-industry conglomerates
Sophus Berendsen 4,200 (b) 518,831
Sophus Berendsen Rts 4,200 51,883
Total 570,714
- --------------------------------------------------------------------------------
Finland (0.9%)
Multi-industry conglomerates
Amer Yhtymae Free 35,000 798,787
- --------------------------------------------------------------------------------
France (2.1%)
Chemicals (0.8%)
Compagnie Gen 6,138 733,559
- --------------------------------------------------------------------------------
Multi-industry conglomerates (1.3%)
Christian Dior 8,500 1,130,562
- --------------------------------------------------------------------------------
Hong Kong (2.7%)
Beverages & tobacco (0.7%)
Vitasoy Intl 1,650,000 634,844
- --------------------------------------------------------------------------------
Financial services (0.3%)
New World Development 45,000 261,892
- --------------------------------------------------------------------------------
Industrial equipment & services (0.7%)
Johnson Electric 300,000 655,699
- --------------------------------------------------------------------------------
Multi-industry conglomerates (1.0%)
Swire Pacific 100,000 882,672
- --------------------------------------------------------------------------------
India (0.7%)
Automotive & related
Mahindra & Mahindra 60,000 600,000
- --------------------------------------------------------------------------------
Indonesia (3.2%)
Banks and savings & loans (0.6%)
Modernbank 774,000 498,433
- --------------------------------------------------------------------------------
Financial services (1.2%)
Kawason Inds 292,500 386,141
Lippo Karawaci 550,000 672,949
Total 1,059,090
- --------------------------------------------------------------------------------
Food (0.6%)
Sekar Bumi 1,000,000 (b) 558,107
- --------------------------------------------------------------------------------
Industrial transporation (0.8%)
Steady Safe Transportation 749,666 (b) 732,190
- --------------------------------------------------------------------------------
Ireland (0.7%)
Bank and savings & loans
Bank of Ireland 70,000 579,309
- --------------------------------------------------------------------------------
Italy (1.7%)
Energy
ENI 310,000 (b) 1,484,608
- --------------------------------------------------------------------------------
Japan (7.2%)
Building materials & construction (0.5%)
Taisei 65,000 399,736
- --------------------------------------------------------------------------------
Communications equipment & services (0.3%)
Toyo Communications 16,000 292,379
- --------------------------------------------------------------------------------
Computers & office equipment (0.4%)
Fujitsu Denso 10,000 329,453
- --------------------------------------------------------------------------------
Electronics (1.9%)
Mitsumi Electric 34,000 570,525
NEC 50,000 544,696
TDK 10,000 586,866
Total 1,702,087
- --------------------------------------------------------------------------------
Financial services (0.8%)
Daiwa Securities 31,000 334,988
Nikko Securities 34,000 325,587
Total 660,575
- --------------------------------------------------------------------------------
Furniture & appliances (0.8%)
Matsushita Electric 45,000 719,526
- --------------------------------------------------------------------------------
Media (0.5%)
Dai Nippon Printing 26,000 438,568
- --------------------------------------------------------------------------------
Multi-industry conglomerates (1.3%)
Secom 20,000 1,191,302
- --------------------------------------------------------------------------------
Textiles & apparel (0.7%)
World 15,000 625,961
- --------------------------------------------------------------------------------
Malaysia (3.3%)
Industrial equipment & services (0.7%)
United Engineers 78,000 617,455
- --------------------------------------------------------------------------------
Leisure time & entertainment (1.3%)
Multi Purpose 660,000 1,128,517
- --------------------------------------------------------------------------------
Multi-industry conglomerates (0.5%)
Eastern & Oriental 245,000 480,982
- --------------------------------------------------------------------------------
Miscellaneous (0.8%)
PDZ Holdings 125,000 (b) 677,815
- --------------------------------------------------------------------------------
Mexico (3.3%)
Beverages & tobacco (1.2%)
Grupo Modelo 200,000 1,036,714
- --------------------------------------------------------------------------------
Multi-industry conglomerates (1.0%)
Desc Sociedad Industries 46,000 (b) 885,500
- --------------------------------------------------------------------------------
Restaurants & lodging (1.1%)
Posadas de Mexico 2,300,000 964,643
- --------------------------------------------------------------------------------
Netherlands (1.1%)
Industrial Transport
Nedlloyd 37,000 (b) 929,007
- --------------------------------------------------------------------------------
Norway (0.8%)
Communications equipment & services
Nera Telecommunications 20,000 717,500
- --------------------------------------------------------------------------------
Peru (0.8%)
Utilities -- telephone
CPT Telefonica 350,000 740,555
- --------------------------------------------------------------------------------
Philippines (3.3%)
Banks and savings & loans (0.9%)
PCI Bank 23,000 297,565
Philippine Savings 240,000 (b) 515,982
Total 813,547
- --------------------------------------------------------------------------------
Financial services (1.2%)
Filinvest 600,000(b,c) 223,744
Primetown Property 4,000,000 (b) 837,136
Total 1,060,880
- --------------------------------------------------------------------------------
Multi-industry conglomerates (1.2%)
Belle 4,000,000 1,065,448
- --------------------------------------------------------------------------------
Singapore (2.0%)
Electronics (1.2%)
GP Batteries 370,000 1,073,000
- --------------------------------------------------------------------------------
Energy equipment & services (0.8%)
Far East Levingston 155,000 742,811
- --------------------------------------------------------------------------------
South Africa (0.4%)
Retail
Pepcor 100,000 368,680
- --------------------------------------------------------------------------------
Sweden (0.8%)
Miscellaneous
Medical Investment 30,300 723,540
- --------------------------------------------------------------------------------
Switzerland (0.7%)
Health care
Sandoz Registered 500 577,927
- --------------------------------------------------------------------------------
Thailand (2.5%)
Banks and savings & loans (1.0%)
Siam City Bank 235,000 269,611
Thai Farmers Bank 44,000 336,536
Thai Military Bank 117,900 272,842
Total 878,989
- --------------------------------------------------------------------------------
Building materials & construction (0.6%)
Italian Thailand Development 100,000 (b) 529,515
- --------------------------------------------------------------------------------
Financial services (0.9%)
Nava Finance & Securities 450,000 798,686
- --------------------------------------------------------------------------------
United Kingdom (7.0%)
Automotive & related (0.7%)
BBA Group 111,436 (b) 650,183
- --------------------------------------------------------------------------------
Computers & office equipment (0.8%)
JBA Holdings 83,000 688,921
- --------------------------------------------------------------------------------
Media (1.3%)
Freepages 1,900,000 1,175,055
- --------------------------------------------------------------------------------
Metals (1.0%)
Ashanti Gold 48,889 (b) 800,557
- --------------------------------------------------------------------------------
Multi-industry conglomerates (2.5%)
Capita Group 100,000 676,227
EMI Group 20,769 408,154
Man E D & F 180,000 503,874
Serco Group 50,000 515,511
Thorn 20,360 114,816
Total 2,218,582
- --------------------------------------------------------------------------------
Miscellaneous (0.7%)
Tata Engineering 53,000 655,875
- --------------------------------------------------------------------------------
United States (5.4%)
Financial services (0.5%)
Taiwan Fund 20,000 427,500
- --------------------------------------------------------------------------------
Media (0.7%)
Telemundo Group 21,500 (b) 596,625
- --------------------------------------------------------------------------------
Metals (3.8%)
Getchell Gold 15,000 (b) 667,500
Pittston Minerals 60,000 697,500
Stillwater Mining 60,000 (b) 1,035,000
Ucar Intl 25,000 (b) 978,125
Total 3,378,125
- --------------------------------------------------------------------------------
Miscellaneous (0.4%)
Public Bank 185,000 344,285
- --------------------------------------------------------------------------------
Total common stocks
(Cost: $67,990,708) $69,451,187
- --------------------------------------------------------------------------------
Preferred stocks & other (0.4%)
Issuer Shares Value(a)
- --------------------------------------------------------------------------------
Portugal (0.4%)
Cimpor Cimentos 16,000 $ 336,309
- --------------------------------------------------------------------------------
United Kingdom (--%)
Ashanti Gold 23,889 48,375
- --------------------------------------------------------------------------------
United States (--%)
American Mineral Fields
Warrants 17,500 (d) --
- --------------------------------------------------------------------------------
Total preferred stocks & other
(Cost: $367,351) $ 384,684
- --------------------------------------------------------------------------------
Bonds (1.8%)
Issuer and Principal Value(a)
coupon rate amount
- --------------------------------------------------------------------------------
Germany (0.8%)
Banks & savings & loans
Dresdner Finance
(U.S. Dollar)
2.25% Cv 2001 $1,000,000 $ 686,536
- --------------------------------------------------------------------------------
South Africa (1.0%)
Government bond
South Africa Govt
(U.S. Dollar)
2.64% Cv 2005 5,000,000 874,356
Total bonds
(Cost: $1,642,484) $1,560,892
- --------------------------------------------------------------------------------
Short-term securities (19.0%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
- --------------------------------------------------------------------------------
U.S. government agencies (10.9%)
Federal Home Loan Bank Disc Nt
11-21-96 5.18% $3,200,000 $ 3,190,791
Federal Home Loan Mtge Corp Disc Nts
11-19-96 5.18 5,300,000 5,286,273
11-21-96 5.19 1,200,000 1,196,540
Total 9,673,604
- --------------------------------------------------------------------------------
Commercial paper (8.1%)
Goldman Sachs 5.24 1,100,000 1,095,997
11-26-96
Merrill Lynch 5.30 600,000 599,470
11-07-96
Mobil Australia 5.25 1,900,000 1,890,579
12-05-96
Pacific Mutual 5.24 2,300,000 2,292,970
11-22-96
USAA Capital 5.24 1,300,000 1,292,431
12-11-96
Total 7,171,447
- --------------------------------------------------------------------------------
Total short-term securities
(Cost: $16,845,051) $16,845,051
- --------------------------------------------------------------------------------
Total investments in securities
(Cost: $86,845,594)(f) $88,241,814
- --------------------------------------------------------------------------------
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial
statements. Foreign security values are stated in U.S. Dollars.
(b) Non-income producing.
(c) 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.
(d) Negligible market value.
(e) Type of Security Contracts
----------------------------------------------------------------------------
Nikkei 225 Stock Index, Dec. 1996 20
(f)At Oct. 31, 1996, the cost of securities for federal income tax purposes was
approximately $86,846,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $5,623,000
Unrealized depreciation (4,227,000)
----------------------------------------------------------------------------
Net unrealized appreciation $1,396,000
- --------------------------------------------------------------------------------
<PAGE>
Directors and officers
Directors and officers of the fund
President and interested director
Richard W. King
President, IDS Life
- --------------------------------------------------------------------------------
Independent directors
Edward Landes
Retired, former development consultant.
Carl N. Platou
President Emeritus and chief executive officer, Fairview Hospital and Healthcare
Services.
Gordon H. Ritz
Director Mid America Publishing and Atrix International Inc. Former president,
Con Rad Broadcasting Corp.
- --------------------------------------------------------------------------------
Interested director who is an officer and/or employee of American Express
Financial Corporation
Michael J. Hogan
Director and executive vice president, Variable Assets
- --------------------------------------------------------------------------------
Other officers
Morris Goodwin, Jr.
Vice President and treasurer
Lorraine R. Hart
Vice President, Investments
Jeffrey S. Horton
Vice President and controller
Paul F. Kolkman
Vice president and chief actuary
Timothy S. Meehan
Secretary
William A. Stoltzman
General counsel and assistant secretary
<PAGE>
American Express Financial Advisors
IDS Life Series Fund, Inc.
IDS Tower 10
Minneapolis, MN 55440-0010
