<PAGE>
PAGE 1
IDS Life Series Fund
1997 ANNUAL REPORT
(PROSPECTUS INCLUDED)
(Icon of) The planet Saturn
Offers six portfolios with separate goals and objectives to provide
investment flexibility for Variable Life Insurance Policies.
AMERICAN
EXPRESS
Financial
Advisors
Managed by IDS Life Insurance Company
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PAGE 2
Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the
portfolios performed.
The prospectus, which is bound with this annual report, describes
the portfolios in detail.
See page 2 of the prospectus for a detailed table of contents.
1997 annual report
From the president 3
Equity Portfolio 4
From the portfolio manager 4
Ten largest holdings 5
Long-term performance 6
Income Portfolio 7
From the portfolio manager 7
Ten largest holdings 8
Long-term performance 9
Money Market Portfolio 10
From the portfolio manager 10
Managed Portfolio 11
From the portfolio managers 11
Ten largest holdings 12
Long-term performance 13
Government Securities Portfolio 14
From the portfolio manager 14
Long-term performance 15
International Equity Portfolio 16
From the portfolio manager 16
Ten largest holdings 17
Long-term performance 18
All portfolios 19
Independent auditors' report 19
Financial statements 20
Notes to financial statements 27
Investments in securities 35
1997 prospectus
The fund in brief 3p
Performance 5p
Investment policies and risks 16p
How to invest, transfer or redeem shares 25p
Distributions and taxes 26p
How the fund is organized 27p
About IDS Life and American
Express Financial Corporation 31p
(This annual report is not part of the prospectus.)
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PAGE 3
To our policyowners
(Photo of) Richard W. Kling, President
From the president
Diversification and balance continue to be vital elements in a
financial strategy. These elements are provided 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 and
Variable Second-to-Die) policies.
In their comments on the following pages, the funds' portfolio
managers review the past fiscal year, which ran from May 1996
through April 1997.
Sincerely,
Richard W. Kling
President
IDS Life Series Fund, Inc.
(This annual report is not part of the prospectus.)
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PAGE 4
Equity Portfolio
(Photo of) Louis Giglio, Portfolio manager
From the portfolio manager
Growth stocks were on a roller-coaster ride during the past fiscal
year, driven largely by swings in long-term interest rates.
Ultimately, for the 12 months from May 1996 through April 1997, the
portfolio's total return was (3.66)%. (This figure does not
reflect expenses that apply to the variable subaccounts or to the
policy.)
The period got off to a strong start, as growth stocks continued to
flourish in an environment of moderate inflation and steady
economic growth. But the summer brought a slight upturn in long-
term interest rates, which took a heavy toll on growth stocks,
especially those of formerly high-flying technology issues. By the
time the market settled down, the portfolio's loss had climbed into
double digits.
Nevertheless, and 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. They
continued to chug along nicely over the next four months, only to
hit another deep pothole in February and March, again created by a
spike in interest rates.
The portfolio's largest investment exposure (between 35% and 50%)
during the 12 months was to consumer stocks, including those of
health care and retailing companies. Technology stocks, most of
which are computer-related, comprised the next-largest exposure,
followed by stocks of financial services companies, including
brokerage houses and banks. Complementing these longtime staples
of the portfolio were energy-related stocks, particularly natural
gas, which I added last fall and which provided a nice performance
boost at that time. As the prospects for those stocks weakened
over the winter, I eliminated that exposure.
Although the stock market showed some signs of renewed vigor as the
fiscal year drew to a close, I think the investment environment
will remain unsettled until the interest-rate picture becomes
clearer. That could take some months to resolve, as it appears
that the Federal Reserve may periodically raise short-term interest
rates to ensure that inflation doesn't get out of control. In the
meantime, I will continue to focus on stocks of well-managed
companies with above-average earnings growth.
Louis Giglio
(This annual report is not part of the prospectus.)
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PAGE 5
<TABLE>
<CAPTION>
The Portfolio's ten largest holdings
Equity Portfolio
Percent Value
Portfolio's net assets) (as of April 30, 1997)
<S> <C> <C>
Ascend Communications 2.08% $11,437,500
HBO & Co 2.06 11,342,000
Sterling Commerce 1.69 9,315,000
Safeway 1.62 8,952,891
Tyco Intl 1.55 8,540,000
McAfee Associates 1.18 6,522,750
Computer Sciences 1.13 6,250,000
Praxair 1.12 6,195,000
United Waste Systems 1.05 5,771,250
Dollar General 1.02 5,645,062
The ten holdings listed here make up 14.50% of the Portfolio's net assets
</TABLE>
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 6
The portfolio's long-term performance
Equity Portfolio
How your $10,000 has grown in Equity Portfolio
$40,000
$34,681
Equity Portfolio
S&P 500
$30,000
$20,000 Lipper Growth
& Income Fund Index
$10,000
'87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97
Average annual total return
(as of April 30, 1997)
1 year 5 years 10 years
-3.66% +15.97% +13.23%
On the chart above you can see how the portfolio's total return
compared to two widely cited performance indexes, the S&P 500 and
the Lipper Growth & Income Fund Index.
Standard & Poor's Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
Lipper Growth & Income Fund Index, published by Lipper Analytical
Services, Inc., includes 30 funds that are generally similar to
this fund, although some funds in the index may have somewhat
different investment policies or objectives.
Your investment and return value fluctuate so that your
accumulation units, when redeemed, may be worth more or less than
their original cost. Past performance is no guarantee of future
results. The above chart does not reflect expenses that apply to
the subaccounts or the policies.
(This annual report is not part of the prospectus.)
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PAGE 7
To our policyowners
Income Portfolio
(Photo of) Lorraine R. Hart, Portfolio manager
From the portfolio manager
Despite a slump in the bond market early in 1997, Income Portfolio
provided policy owners with positive results during the past fiscal
year. For the 12 months from May 1996 through April 1997, the
portfolio's total return was 8.05%. (The figure does not reflect
expenses that apply to the variable subaccounts or to the policy.)
The beginning of the period coincided with a return to a calm
environment for bonds, which had been battered by a run-up in long-
term interest rates in the opening months of 1996. After an
uneventful summer, the bond market, reassured that the Federal
Reserve still found inflation tame enough not to require a hike in
short-term interest rates, began mounting a meaningful advance. To
the portfolio's benefit, the market sustained its forward momentum
through October, as long-term interest rates came down.
The positive tone of the market was short-lived, however, as
inflation fears mounted over the winter, sending long-term interest
rates higher and bond prices lower. By the time the Federal
Reserve got around to raising short-term rates in late March, most
of the damage to the bond market had already been done.
As is usually the case, the bulk of this portfolio was invested in
three bond sectors during the fiscal year: bonds issued by the U.S.
Treasury, bonds issued by U.S. corporations and mortgage-backed
bonds, which are issued by federal government agencies such as
Fannie Mae and Ginnie Mae. The latter group, which comprised about
a third of assets, was the portfolio's largest investment exposure
over the period.
The most important change to the portfolio was a substantial
reduction in duration, a function of the average maturity of
investments that determines how sensitive the portfolio is to
interest-rate changes. In this case, over the winter I
substantially reduced the duration, which helped buffer the
portfolio against the rise in long-term interest rates. In
addition, I reduced holdings of U.S. Treasury bonds, whose values
are especially vulnerable to an increase in interest rates.
Concurrently, I increased the exposure to corporate bonds and
allowed the cash reserves to build up -- again, to limit the price
erosion caused by the rate rise.
Given my outlook for somewhat higher interest rates as 1997
progresses, I am maintaining a conservative approach in the current
fiscal year. Once it becomes clear that the Federal Reserve
believes no more rate increases are needed to keep inflation at
bay, I expect to position the portfolio more aggressively.
Lorraine R. Hart
(This annual report is not part of the prospectus.)
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PAGE 8
<TABLE>
<CAPTION>
The Portfolio's ten largest holdings
Income Portfolio
Percent Value
(of Portfolio's net assets) (as of April 30, 1997)
<S> <C> <C>
Schuller Intl Group .83% $551,250
10.875% 2004
Noble Drilling .80 531,875
9.125% 2006
Govt of Poland PDI Euro .79 528,938
4.00% 2014
Parker & Parsley Petroleum .79 525,710
8.25% 2007
Gulf Canada Resources .79 525,000
9.625% 2005
Kroger .77 516,250
8.15% 2006
Long Island Lighting .77 515,290
8.625% 2004
Oryx Energy .77 512,045
8.125% 2005
Ras Laffan Gas .76 510,140
8.29% 2014
Ryerson Tull .76 509,375
8.50% 2001
Excludes U.S. Treasury and mortgage-backed securities.
The ten holdings listed here make up 7.83% of the Portfolio's net assets
</TABLE>
(This annual report is not part of the prospectus.)
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PAGE 9
The portfolio's long-term performance
Income Portfolio
How your $10,000 has grown in Income Portfolio
$22,471
$20,000 Income
Portfolio
Lehman Aggregate
Bond Index
$10,000
'87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97
Average annual total return
(as of April 30, 1997)
1 year 5 years 10 years
+8.05% +8.69% +8.43%
On the chart above you can see how the portfolio's total return
compared to a widely cited performance measure, the Lehman
Aggregate Bond Index.
The Lehman Aggregate Bond Index is made up of a representative list
of government and corporate bonds as well as asset-backed
securities and mortgage-backed securities. The index is frequently
used as a general measure of bond market performance. However, the
securities used to create the index may not be representative of
the bonds held in the Income Portfolio.
Your investment and return value fluctuate so that your
accumulation units, when redeemed, may be worth more or less than
their original cost. Past performance is no guarantee of future
results. The above chart does not reflect expenses that apply to
the subaccounts or the policies.
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 10
To our policyowners
Money Market Portfolio
(Photo of) Terry Fettig, Portfolio manager
From the portfolio manager
Short-term interest rates rose moderately overall during the past
fiscal year (May 1996 through April 1997), resulting in a 12-month
yield on the portfolio of 4.86%. 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.)
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 modestly higher through the summer
months, without any action by the Federal Reserve Board.
Following an uneventful fall and winter, indications that the
economy might be picking up steam began to surface. Although the
inflation data remained benign, the Federal Reserve evidently
decided that economic strength had reached the point where
inflation pressures could soon build up and, in March, raised
short-term interest rates.
During the 12 months, I varied the average maturity of the
portfolio's investments slightly, reducing it when interest rates
were rising and lengthening it when rates were falling. This
strategy allows me to add higher-yielding securities as they become
available when rates rise, while helping maintain the portfolio's
yield when rates decline.
At this writing (mid-May), the latest data show stronger-than-
expected economic growth. Should that continue, I think it's
likely that the Federal Reserve will push short-term rates higher
in the months ahead. Given that outlook, I am maintaining a
shorter-than-average maturity in the portfolio to facilitate the
addition of higher-yielding investments as they become available.
Terry Fettig
(This annual report is not part of the prospectus.)
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PAGE 11
To our policyowners
Managed Portfolio
(Photo of) Anne Obermeyer, Portfolio manager
(Photo of) Scott Schroepfer, Portfolio manager
From the portfolio managers
Despite considerable volatility in the stock and bond markets,
Managed Portfolio generated a double-digit return during the past
fiscal year -- May 1996 through April 1997. For the 12 months,
policy owners realized a gain of 12.46%. (This figure does not
reflect expenses that apply to the variable subaccounts or to the
policy.)
A mostly positive environment for stocks and bonds continued during
the first several months of the period, 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 through the summer, save last July. A
fall rally by stocks and bonds more than made up for that downturn,
however.
The new year brought considerable change. Stocks continued their
advance until mid-February, while bonds began losing ground from
the outset. By mid-March, stocks, too, were in retreat. But, with
the remarkable resilience they've shown in recent years, stocks
rebounded sharply in the final two weeks of the period.
Most of the stocks we owned were of the large, blue chip variety,
but we did add some names in the mid-size category. Overall,
however, we reduced the total number of stock holdings to what we
believe is a more manageable size. While we kept the portfolio
well-diversified by industry, the majority of stock holdings fell
into five sectors: health care, technology, retailing, financial
services and energy. Consistent with the portfolio's relatively
conservative investment style, the majority of the bond investments
were in high-quality securities issued by the U.S. government and
U.S. corporations.
We made only minor changes to the portfolio during the period.
Over the winter, we reduced the duration of the bond holdings, a
strategy designed to make them less vulnerable to price declines in
an environment of rising interest rates.
We also trimmed our holdings of financial stocks and stocks that
experienced strong run-ups (many of them in the technology arena),
which also might be vulnerable to rising rates. On the other hand,
we added more energy and leisure-related stocks. After the close
of the period, we began letting cash build up, again to provide a
cushion should rates rise further. All in all, it's a portfolio
structured for ongoing volatility in stocks and bonds.
Anne Obermeyer
Scott Schroepfer
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 12
<TABLE>
<CAPTION>
The Portfolio's ten largest holdings
Managed Portfolio
Percent Value
(of Portfolio's net assets) (as of Apr. 30, 1997)
<S> <C> <C>
Emerson Electric 1.48% $6,090,000
Tyco Intl 1.31 5,386,300
Revlon Worldwide
6.25% 1998 1.15 4,731,250
Rite Aid 1.12 4,600,000
Merck 1.08 4,434,500
Telecomunicacoes Brasileiras-Telebras ADR 1.08 4,417,875
Praxair 1.00 4,130,000
Service Corp Intl 1.00 4,110,000
Advanced Fibre Communications 0.97 3,987,500
Washington Mutual 0.95 3,885,812
Excludes U.S. Treasury and mortgage-backed securities.
The ten holdings listed here make up 11.14% of the Portfolio's net assets
</TABLE>
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 13
The portfolio's long-term performance
Managed Portfolio
How your $10,000 has grown in Managed Portfolio
$40,000
$34,784
Managed
Portfolio
S&P 500
$30,000
$20,000
Lipper Balanced
Fund Index
$10,000
'87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97
Average annual total return
(as of April 30, 1997)
1 year 5 years 10 years
+12.46% +13.38% +13.26%
On the chart above you can see how the portfolio's total return
compared to two widely cited performance indexes, the S&P 500 and
the Lipper Balanced Fund Index.
Standard & Poor's Stock Index (S&P 500), an unmanaged list of
common stocks, is frequently used as a general measure of market
performance. However, the S&P 500 companies are generally larger
than those in which the fund invests.
Lipper Balanced Fund Index, published by Lipper Analytical
Services, Inc., includes 10 funds that are generally similar to the
fund, although some funds in the index may have somewhat different
investment policies or objectives.
Your investment and return value fluctuate so that your
accumulation units, when redeemed, may be worth more or less than
their original cost. Past performance is no guarantee of future
results. The above chart does not reflect expenses that apply to
the subaccounts or the policies.
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 14
To our policyowners
Government Securities Portfolio
(Photo of) James W. Snyder, Portfolio manager
From the portfolio manager
Periodic rises in interest rates made for an unsettled bond market
during the past fiscal year -- May 1996 through April 1997. Still,
thanks to appropriate shifts in structure, the Portfolio weathered
the conditions well, generating a total return of 5.82% for policy
owners over the 12 months. (This figure does not reflect expenses
that apply to the variable subaccounts or to the policy.)
The period began with the bond market in limbo, as investors
couldn't reach a consensus regarding the underlying strength of the
economy and, in turn, the outlook for inflation and interest rates.
By September, a prevailing view finally emerged: The economy was
not too strong, and higher inflation was not imminent. Buoyed by
an ongoing "hands-off" policy by the Federal Reserve on short-term
interest rates, bonds staged an impressive fall rally.
From that point, though, the bond market began to lose momentum.
Although the inflation data had yet to prove threatening, better-
than-expected economic growth planted seeds of doubt in investors'
minds. The result was that interest rates, with still no action on
the part of the Fed, crept higher over the winter. Bonds, whose
prices move in the opposite direction of interest rates, declined
accordingly. By the time the Fed actually did raise short-term
rates in late March, the bulk of the erosion in the bond market had
already occurred. Relief came quickly, though, as an April rally,
sparked by a surprisingly tame inflation report, concluded the
period on an up note.
As for the Portfolio, it gained ground along with the market last
fall. Prior to that, I increased investments in U.S. Treasury
bonds, which enjoyed above-average appreciation and thereby
enhanced Portfolio performance. During the ensuing months, I
gradually reduced the exposure to "Treasury's," which experienced a
considerable decline as interest rates rose. Concurrently, I built
up investments in mortgage-backed securities, whose values are less
affected by rate fluctuations. Furthermore, I reduced the
Portfolio's duration -- a function of the average maturity of the
investments that also determines how sensitive the value of the
Portfolio is to interest rate ups and downs.
I am maintaining a conservative investment strategy in this new
fiscal year, based on my expectation that the Federal Reserve will
push interest rates still higher this year. As before, this means
an emphasis on investment income rather than potential price
appreciation.
James W. Snyder
(This annual report is not part of the prospectus.)
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PAGE 15
The portfolio's long-term performance
Government Securities Portfolio
How your $10,000 has grown in Government Securities Portfolio
$20,000 $20,779
Government
Securities Portfolio
Merrill Lynch 1-3 yr.
Government Index
$10,000
'87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97
Average annual total return
(as of April 30, 1997)
1 year 5 years 10 years
+5.82% +7.07% +7.59%
On the chart above you can see how the portfolio's total return
compared to a widely cited performance measure, the Merrill Lynch
1-3 year Government Index.
Merrill Lynch 1-3 year Government Index is an unmanaged list of all
treasury and agency securities. The index is used here as a
general measure of performance. However, the securities used to
create the index may not be representative of the debt securities
held in the Government Securities Portfolio.
Your investment and return value fluctuate so that your
accumulation units, when redeemed, may be worth more or less than
their original cost. Past performance is no guarantee of future
results. The above chart does not reflect expenses that apply to
the subaccounts or the policies.
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 16
To our policyowners
International Equity Portfolio
(Photo of) Richard Lazarchic, Portfolio manager
From the portfolio manager
The past fiscal year was a volatile period for world stock markets.
International Equity Portfolio's up-and-down performance reflected
that fact, ultimately producing a total return of (0.53)% for the
12 months from May 1996 through April 1997. (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 last 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 last summer and a considerable loss for the portfolio. The
ensuing months brought more up-and-down performance, concluding
with a spring sell-off that largely took its cue from a downturn in
the U.S. market, which fell victim to a run-up in long-term
interest rates.
The most consistently positive performers for the portfolio during
the 12 months were the so-called "emerging" markets of Latin
America, which include Mexico, Brazil and Argentina. Although the
portfolio's holdings in these markets were relatively small, their
gains clearly enhanced performance. Among the larger, more-
established markets, results were mixed: Germany was moderately
positive; Canada and the United Kingdom were essentially flat; and
Asia, including Hong Kong and Japan, were negative. In the case of
the latter country, a sharp decline in the value of the yen versus
the dollar penalized returns to U.S.-based investors.
While it also experienced considerable volatility, the U.S. market
finished substantially higher over the fiscal year. I shifted the
portfolio's U.S. exposure to a large degree -- from about 5% of
assets in mid-1996 to 25% by late summer, then down to less than
20% by period-end. Last year's increase proved to be timely, as
the U.S. market staged a powerful rally in the fall. For the
period as a whole, the U.S. was the portfolio's largest investment
exposure.
Looking to the new fiscal year, I think foreign markets as a whole
can look forward to a better currency environment, as I think it's
unlikely that the dollar will continue its recent, rapid
appreciation. Also, Europe and Japan appear to be closer to
regaining positive economic momentum. In the meantime, the
portfolio remains broadly diversified by country, including the
U.S.
Richard Lazarchic
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 17
<TABLE>
<CAPTION>
The Portfolio's ten largest holdings
International Equity Portfolio
Percent Value
(of Portfolio's net assets) (as of April 30, 1997)
<S> <C> <C>
Telecommunicacoes Brasileiras -
Telebras (Brazil) 2.05% $2,580,975
Porsche (Germany) 1.96 2,469,314
Raision Tehtaat (Finland) 1.65 2,072,135
Biocompatibles Intl (United Kingdom) 1.64 2,067,465
Stillwater Mining (United States) 1.60 2,012,500
Elf Aquitaine (France) 1.54 1,939,518
Logitech Intl (Switzerland) 1.49 1,878,659
Medical Investment (Sweden) 1.42 1,787,831
Freepages Group (United Kingdom) 1.39 1,750,453
Ucar Intl (United States) 1.34 1,680,000
The ten holdings listed here make up 16.08% of the Portfolio's net assets
</TABLE>
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 18
The portfolio's long-term performance
International Equity Portfolio
How your $10,000 has grown in International Equity Portfolio
$20,000
International Equity
Portfolio $16,663
Goldman Sachs
$10,000 EGMI ex. U.S. with
Japanese Modification Goldman Sachs
EGMI ex. U.S.
Oct-94 Apr-95 Oct-95 Apr-96 Oct-96 Apr-97
Average annual total return
(as of April 30, 1997)
1 year Since inception*
-0.53% +22.59%
*Inception date was Oct. 28, 1994.
On the chart above you can see how the portfolio's total return
compared to a widely cited performance measure, the Goldman Sachs
Extended Global Market Index and also to the Goldman Sachs Extended
Global Market Index ex. U.S. which Japanese Modification.
The Goldman Sachs Extended Global Market Index ex. U.S. consists of
market capitalization-weighted combinations of the Financial
Times/Standard & Poor's (FT/S&P) Actuaries World Indices and the
International Finance Corporation Investable (IFCI) Indices. The
FT/S&P Actuaries Indices include 26 primarily developed countries
and cover approximately 80% of the equity capitalization within
those countries. The IFCI Market Indices consist of an additional
46 primarily emerging market countries and covers between 60% and
70% of the total capitalization in the markets included. The index
is used here as a general measure of performance. However, the
securities used to create the index may not be representative of
the securities held in the International Equity Portfolio.
The Goldman Sachs Extended Global Market Index ex. U.S. with
Japanese Modification is calculated by Goldman, Sachs & Co. and is
based on the GS-EGMI World Index excluding U.S. region with Japan
included at 50% of its percentage weight. The weight of Japan is
reset each week and the weights of the remaining countries are
proportionally increased to make up for Japan's reduced weight.
The index is used here as a general measure of performance.
However, the securities used to create the index may not be
representative of the securities held in the International Equity
Portfolio.
Your investment and return value fluctuate so that your
accumulation units, when redeemed, may be worth more or less than
their original cost. Past performance is no guarantee of future
results. The above chart does not reflect expenses that apply to
the subaccounts or the policies.
(This annual report is not part of the prospectus.)
<PAGE>
PAGE 19
The financial statements contained in Post-Effective Amendment #20
to Registration Statement No. 2-97636 filed on or about June 27,
1997, are incorporated herein by reference.
<PAGE>
PAGE 20
IDS Life Series Fund
IDS Tower 10
Minndapolis, MN 55440-0010
AMERICAN
EXPRESS
Financial
Advisors
<PAGE>
PAGE 21
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report are
placed in a blue strip
at the top of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
