IDS
Life Series
Fund, Inc.
(icon of)
Offers six portfolios with separate goals and objectives to provide investment
flexibility for Variable Life Insurance Policies.
(icon of) the planet Saturn
1997 SEMIANNUAL REPORT
Managed by IDS Life Insurance Company
<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 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 first six months of the fiscal year, which ran from through May
through October 1997.
Sincerely,
Richard W. Kling
President
IDS Life Series Fund, Inc.
(picture of) Richard W. Kling
<PAGE>
Equity Portfolio
Despite a sharp downturn in the stock market at the end of the period,
Equity Portfolio performed well from May through October 1997, producing a
total return of 27.01%. (This figure does not reflect expenses that apply
to the variable subaccounts or to the policy.)
Given that large-capitalization stocks have generally led the market in
recent years, the performance of the portfolio, which is concentrated in
small- and mid-cap stocks, was particularly gratifying. With some blue
chip stocks falling on hard times in recent months, investors began
turning to smaller companies.
The portfolio underwent a restructuring last spring when I assumed
management responsibilities. The number of stocks owned was cut
dramatically, from almost 200 to about 130. This reduction, along with a
lowering of cash reserves, means the portfolio is more concentrated and
potentially volatile. Therefore, stocks that perform well will have
greater positive impact on performance, and vice-versa. The latter point
was evident in late October, when the market and the portfolio dropped
sharply. Over the long run, though, I think overall performance will
benefit.
As for stock selection, I look for those that can deliver a consistent,
high level of earnings growth, generally above 15%. While each stock is
picked individually, common themes have emerged, such as "year 2000" and
the "aging of America." The portfolio includes stocks that should benefit
from both trends. Looking at stock sectors, the portfolio is concentrated
in technology and health care; they represent almost half of all holdings.
Much of the rest of the portfolio is invested in financial services,
energy services and retailing stocks.
Despite the volatility in the stock market, the economy is still healthy,
interest rates remain low, and many businesses continue to report strong
earnings. I think the market will reward that growth, and the portfolio is
positioned to benefit accordingly.
Louis Giglio
(picture of)Louis Giglio
Louis Giglio
Portfolio Manager
<PAGE>
The Portfolio's ten largest holdings
Equity Portfolio
Percent Value
(of Portfolio's net assets) (as of Oct. 31, 1997)
Viasoft 2.74% $20,500,000
HBO & Co 2.46 18,444,000
CIENA 1.84 13,750,000
Watson Pharmaceuticals 1.70 12,700,000
McAfee Associates* 1.66 12,437,500
USA Waste Services 1.65 12,351,525
Outdoor Systems 1.64 12,300,000
Sterling Commerce 1.60 11,947,500
KLA-Tencor 1.47 10,984,375
Steris 1.46 10,931,250
* Merged with Network General on Dec. 1, 1997 and changed its name to
Network Associates.
(icon of) pie chart
The ten holdings listed here make up 18.22% of the Portfolio's net assets
<PAGE>
Income Portfolio
A generally good environment for bonds prevailed during the past six
months, fostering higher prices in most sectors of the market. For policy
owners, the result was a total return of 5.97% for the first half of the
fiscal year -- May through October 1997. (This figure does not reflect
expenses that apply to the variable subaccounts or to the policy.)
After a difficult winter capped by an interest-rate increase by the
Federal Reserve in early March, the bond market was enjoying a more
favorable climate when the period began last spring. Although data showed
that the economy was continuing to chug along, the growth was not being
accompanied by an increase in the inflation rate, which many investors had
anticipated. Consequently, long-term interest rates began declining, a
trend that continued through July. Because falling rates boost bond
prices, the portfolio experienced healthy appreciation along the way. The
rally stalled out in August, as inflation fear resurfaced and interest
rates rose a bit. But more tame inflation news led to a rebound in the
fall.
As always, the portfolio remained invested in three main bond sectors:
bonds issued by corporations (about half of the investments);
mortgage-backed bonds issued by federal government agencies such as Fannie
Mae and Ginnie Mae; and bonds issued by the U.S. Treasury. Because of
their price-sensitivity to changes in interest rates, the Treasury bond
holdings performed best over the six months.
Because of my concern that inflation might heat up, I kept a relatively
high level of cash reserves during the period. In the end, this tempered
the portfolio's performance somewhat. On the other hand, I reduced
investments in mortgage-backed bonds and increased investments in Treasury
bonds, which ultimately enhanced performance.
As for the rest of the fiscal year, I continue to expect upward pressure
on interest rates. Therefore, I plan to maintain a relatively conservative
investment approach that stresses income more than potential price
appreciation.
Lorraine R. Hart
(picture of)Lorraine R. Hart
Lorraine R. Hart
Portfolio Manager
<PAGE>
The Portfolio's ten largest holdings
Income Portfolio
Percent Value
(of Portfolio's net assets) (as of Oct. 31, 1997)
Lloyds Bank .91% $675,637
5.94% 2049
Midland Bank .87 642,450
6.06% 2049
Parker & Parsley Petroleum .75 557,140
8.25% 2007
Kroger .73 543,125
8.15% 2006
Gulf Canada Resources .73 542,500
9.625% 2005
Oryx Energy .73 539,165
8.125% 2005
Hubco Capital Trust .73 538,214
8.98% 2027
Long Island Lighting .72 534,330
8.625% 2004
Socgen Real Estate .71 527,580
7.64% 2049
Repap Wisconsin .71 527,500
9.25% 2002
Excludes U.S. Treasury and mortgage-backed securities.
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The ten holdings listed here make up 7.59% of the Portfolio's net assets
<PAGE>
Money Market Portfolio
Short-term interest rates were little changed during the first half of the
fiscal year (May through October 1997), resulting in a six-month yield on
the portfolio of 2.56%. 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.)
The economy continued to grow at a healthy pace during the past six
months, while the unemployment rate continued to fall. Historically, such
conditions have led to an increase in the rate of inflation and,
consequently, higher interest rates. However, as has been the case in
recent years, inflation remained quite tame and, in fact, even declined a
bit over the period.
With higher inflation still appearing to be held at bay, the Federal
Reserve Board, or Fed, decided not to raise short-term interest rates
during the six months. Therefore, aside from one brief rise in mid-summer,
the yields on the short-term securities this portfolio invests in stayed
basically the same.
Because I expected interest rates to rise, I kept the average maturity of
the portfolio relatively short -- an average of about 24 days for the six
months. This strategy is based on the fact that the longer the portfolio's
average maturity, the longer it takes the portfolio to respond to a change
in interest rates. Therefore, when rates rise, a shorter maturity allows
me to more quickly add new, higher-yielding investments, which increases
the income paid to shareholders. In this case, the yields on longer
maturity securities were only slightly above that of short-maturity
issues, so I decided it wasn't prudent to substantially lengthen the
portfolio's maturity.
At this point (mid-November), while inflation has yet to show clear signs
of picking up, I think the odds still favor somewhat higher interest rates
in the months ahead. Therefore, barring a major change in the environment,
I plan to maintain a short maturity in the portfolio until higher rates
begin to materialize.
Terry Fettig
(picture of) Terry Fettig
Terry Fettig
Portfolio Manager
<PAGE>
Managed Portfolio
The past six months was a positive period overall for U.S. stocks and
bonds, as they benefited from tame inflation, falling interest rates and
solid economic growth. The portfolio's performance reflected those
favorable factors, generating a total return of 12.53% in the first half
of the fiscal year -- May through October 1997. (This figure does not
reflect expenses that apply to the variable subaccounts or to the policy.)
The first three months were especially strong, allowing the portfolio to
gain more than 10% during that time. From that point, the environment
became more difficult, as a rise in long-term interest rates in the U.S.
last August and a sharp sell-off in worldwide financial markets in late
October forced the portfolio to give back some of its gain. Nevertheless,
it was a productive six months.
Among the stock holdings, those in the telecommunications equipment,
technology, health care, financial services, energy services, retailing
and auto sectors took turns making positive contributions. On the bond
side, we maintained a mix of U.S. Treasury and corporate issues, the
majority of them with high credit-quality ratings.
Because we were cautious about the prospects for both stocks and bonds as
the period began, we had a high level of cash reserves in the portfolio.
But, as the investment environment remained favorable, we gradually
reduced the cash level and put more money to work in stocks. By the fall,
we had built up the stock portion to about 65% of assets, with about 29%
in bonds and 6% in cash.
Looking toward the second half of the fiscal year, we expect the financial
markets to remain rather volatile. Still, the investment fundamentals --
including low inflation, low long-term interest rates and solid economic
growth -- are intact. Therefore, unless there's a major change, we plan to
stick with our emphasis on stocks, complemented by high-quality bonds.
Betty J. Tebault
(picture of) Betty J. Tebault
Betty J. Tebault
Portfolio Manager
Scott Schroepfer
(picture of) Scott Schroepfer
Scott Schroepfer
Portfolio Manager
<PAGE>
The Portfolio's ten largest holdings
Managed Portfolio
Percent Value
(of Portfolio's net assets) (as of Oct. 31, 1997)
Tyco Intl 1.36% $6,666,650
Sofamor Danek Group 1.27 6,198,750
Rite Aid 1.22 5,937,500
Tenet Healthcare 1.19 5,806,875
Washington Mutual 1.10 5,386,031
BankBoston 1.08 5,269,063
CVS 1.07 5,211,563
Cincinnati Bell 1.05 5,130,000
Baker Hughes 1.03 5,053,125
USA Waste Services 1.02 4,995,000
Excludes U.S. Treasury and mortgage backed securities.
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The ten holdings listed here make up 11.39% of the Portfolio's net assets
<PAGE>
Government Securities Portfolio
An overall decline in interest rates made for a largely favorable
environment for bonds during the past six months. As a result, the
portfolio generated a total return of 6.57% for policy owners during the
first half of the fiscal year -- May through October 1997. (This figure
does not reflect expenses that apply to the variable subaccounts or to the
policy.)
After rising throughout most of the winter and early spring, interest
rates began declining around the start of the fiscal year, as ongoing
reports of low consumer and producer prices eased investors' fears of a
potential run-up in the inflation rate. Naturally, this was good news for
the portfolio, whose bond holdings appreciated in value. (Bond prices move
in the opposite direction of interest rates).
The positive interest rate trend continued until August, when reports of
stronger-than-expected economic growth re-ignited concern of impending
higher inflation and, consequently, drove rates up. But new data
indicating still-tame inflation calmed the bond market in September and
October, and rates settled back down.
The biggest beneficiaries of the overall rate decline were the portfolio's
investments in U.S. Treasury bonds, whose prices react most strongly to
interest-rate changes. I kept between 57% and 63% of assets in
"Treasurys." The rest was invested in mortgage-backed bonds issued by the
federal government, which provided more interest income than Treasurys but
did not enjoy as much price appreciation when interest rates were falling.
As the period progressed, I reduced the Treasury investments somewhat and
moved more money into mortgage-backed bonds. The strategy was based on my
expectation that interest rates would rise and my desire to preserve's
policy owners' capital should that happen.
As of mid-November, I continue to think the odds favor modestly higher
interest rates in the months ahead. Therefore, I plan to stick with a
conservative investment approach unless new economic data indicate a
change in the environment.
James W. Snyder
(picture of) James W. Snyder
James W. Snyder
Portfolio Manager
<PAGE>
International Equity Portfolio
Worldwide stock markets were highly volatile during the past six months,
but the portfolio nevertheless generated a healthy gain. For the first
half of the fiscal year -- May through October -- policy owners realized a
total return of 6.38%. (This figure does not reflect expenses that apply
to the variable subaccounts or to the policy.)
Thanks to generally good economic growth and stable-to-declining interest
rates throughout much of the world, stock markets as a whole rallied
strongly from May through July. The portfolio was well positioned for the
upturn, gaining more than 20% in those three months.
Although rising interest rates in the U.S. drove that and many other
markets down in August, stocks recovered well in the following several
weeks. The biggest development of the period, though, came in the final
week, when collapsing currencies in Southeast Asia sparked a severe
decline in the Hong Kong stock market. That in turn set in motion a domino
effect that drove down stocks worldwide, including in the U.S.
The portfolio's largest area of investment during the six months was the
U.S., which I increased to about one fourth of assets by period-end. That
proved to be a successful strategy given that market's overall strong
performance. Among other major markets, I also kept varying amounts of
exposure (between 5% and 15% each) to Japan, the United Kingdom, France
and Canada. Investments in emerging markets, including Mexico and Brazil,
were relatively modest but made an overall positive contribution to
performance.
As we enter the second half of the fiscal year, many countries continue to
enjoy the favorable factors of low inflation and good corporate profits.
However, the after-effects of the currency and market erosion in Southeast
Asia may be felt around the world for a while yet. Therefore, I am
concentrating investments in larger markets, chiefly the U.S. and Europe,
which would be better able to withstand a potentially difficult
environment.
John O'Brien
(picture of) John O'Brien
John O'Brien
Portfolio Manager
<PAGE>
The Portfolio's ten largest holdings
International Equity Portfolio
Percent Value
(of Portfolio's net assets) (as of Oct. 31, 1997)
Rhone-Poulenc (France) 3.44% $5,593,722
Societe Elf Aquitaine (France) 2.28 3,704,600
JBA Holdings (United Kingdom) 2.20 3,580,562
Philips Electronics (Netherlands) 2.18 3,536,881
Porsche (Germany) 2.17 3,527,365
Dassault Systems (France) 1.99 3,231,408
Credito Italiano (Italy) 1.98 3,222,336
Rohr (United States) 1.87 3,031,250
EDAP TMS ADR (France) 1.57 2,555,000
Istituto Bancario San Paolo di Torino (Italy) 1.56 2,524,564
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The ten holdings listed here make up 21.24% of the Portfolio's net assets
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<TABLE>
<CAPTION>
Financial statements
Statements of assets and liabilities
IDS Life Series Fund, Inc.
Oct. 31, 1997 (Unaudited)
Equity Income Money
Portfolio Portfolio Market
Portfolio
Assets
Investments in securities, at value (Note 1)
(identified cost: $631,487,850; $68,857,726 and
<S> <C> <C> <C>
$31,988,544, respectively) $747,227,749 $70,424,457 $31,988,544
Cash in bank on demand deposit 111,062 40,452 32,778
Receivable for investment securities sold 13,282,049 3,092,551 --
Dividends and accrued interest receivable 128,942 1,185,324 9,127
Receivable for capital stock sold -- 388,281 112,096
--------- ------- -------
Total assets 760,749,802 75,131,065 32,142,545
----------- ---------- ----------
Liabilities
Dividends payable to shareholders (Note 1) -- 406,947 135,719
Payable for investment securities purchased 10,504,675 459,930 --
Accrued investment management services fee 469,892 43,915 13,535
Payable for capital stock redeemed 1,074,792 3,557 348,641
Other accrued expenses 236,357 38,454 7,742
------- ------ -----
Total liabilities 12,285,716 952,803 505,637
---------- ------- -------
Net assets applicable to capital stock $748,464,086 $74,178,262 $31,636,908
============ =========== ===========
Represented by
Capital stock-- of $.001 par value (Note 1) $ 25,944 $ 7,244 $ 31,640
Additional paid-in capital 554,634,855 72,328,379 31,606,230
Undistributed (excess of distributions over) net investment income (905,090) 19,838 --
Accumulated net realized gain (loss) 78,968,478 256,070 (962)
Unrealized appreciation (depreciation) on investments and on
translation of assets and liabilities in foreign currencies 115,739,899 1,566,731 --
----------- --------- -----------
Total-- representing net assets applicable to outstanding capital stock $748,464,086 $74,178,262 $31,636,908
------------ ----------- -----------
Shares outstanding 25,943,974 7,244,278 31,639,882
---------- --------- ----------
Net asset value per share of outstanding capital stock $ 28.85 $ 10.24 $ 1.00
================= =============== ================
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Statements of assets and liabilities (continued)
IDS Life Series Fund,Inc.
Oct. 31, 1997 (Unaudited)
Managed Government International
Portfolio Securities Equity
Portfolio Portfolio
Assets
Investments in securities, at value (Note 1):
<S> <C> <C> <C>
(identified cost: $427,603,742; $14,479,499 and $165,092,962, respectively) $485,265,624 $14,879,232 $167,315,148
Cash in bank on demand deposit 52,081 151,806 15,911
Receivable for investment securities sold 9,499,045 -- 1,141,060
Dividends and accrued interest receivable 2,703,440 191,474 212,343
Unrealized appreciation on foreign
currency contracts held, at value (Notes 1 and 4) -- -- 245,628
Receivable for capital stock sold 2,137,421 58,203 --
--------- ------ -----------
Total assets 499,657,611 15,280,715 168,930,090
----------- ---------- -----------
Liabilities
Dividends payable to shareholders (Note 1) 2,861,594 69,620 --
Payable for investment securities purchased 7,624,184 303,000 6,211,737
Accrued investment management services fee 299,136 8,811 137,886
Unrealized depreciation on foreign
currency contracts held, at value (Notes 1 and 4) -- -- 4,357
Payable for capital stock redeemed 21,778 21,389 74,789
Other accrued expenses 169,736 2,519 7,455
------- ----- -----
Total liabilities 10,976,428 405,339 6,436,224
---------- ------- ---------
Net assets applicable to outstanding capital stock $488,681,183 $14,875,376 $162,493,866
============ =========== ============
Represented by
Capital stock-- of $.001 par value (Note 1) $ 27,457 $ 1,470 $ 10,649
Additional paid-in capital 412,470,242 14,466,716 156,212,989
Undistributed (excess of distributions over) net investment income (91,782) (18,384) 94,691
Accumulated net realized gain (loss) 18,613,591 25,841 3,897,842
Unrealized appreciation (depreciation) on investments and on
translation of assets and liabilities in foreign currencies 57,661,675 399,733 2,277,695
---------- ------- ---------
Total-- representing net assets applicable to outstanding capital stock $488,681,183 $14,875,376 $162,493,866
============ =========== ============
Shares outstanding 27,457,012 1,469,634 10,649,420
---------- --------- ----------
Net asset value per share of outstanding capital stock $ 17.80 $ 10.12 $ 15.26
------------ ----------- ------------
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Financial statements
Statements of operations
IDS Life Series Fund, Inc.
Six months ended Oct. 31, 1997 (Unaudited)
Equity Income Money
Portfolio Portfolio Market
Portfolio
Investment income
Income:
<S> <C> <C> <C>
Dividends $ 939,399 $ 6,510 $ --
Interest 928,128 2,638,834 862,678
Less foreign taxes withheld (1,791) -- --
------ --------- -------
Total income 1,865,736 2,645,344 862,678
--------- --------- -------
Expenses (Note 2):
Investment management services fee 2,484,076 248,563 76,746
Custodian fees 140,000 11,000 8,000
Audit fees 8,000 6,372 4,000
Directors fees 12,000 649 800
Printing and postage 75,000 8,417 2,000
Other 51,750 827 3,619
------ --- -----
Total expenses 2,770,826 275,828 95,165
Less expenses voluntarily reimbursed by IDS Life -- -- (3,069)
--------- --------- ------
Total expenses-- net 2,770,826 275,828 92,096
--------- ------- ------
Investment income (loss)-- net (905,090) 2,369,516 770,582
-------- --------- -------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on:
Security transactions (Note 3) 79,042,467 256,070 (146)
Foreign currency transactions (2,936) -- --
------ ----
Net realized gain (loss) on investments 79,039,531 256,070 (146)
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 72,838,104 1,405,568 --
---------- --------- ----
Net gain (loss) on investments and foreign currencies 151,877,635 1,661,638 (146)
----------- --------- ----
Net increase (decrease) in net assets resulting from operations $150,972,545 $4,031,154 $770,436
============ ========== ========
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Statements of operations (continued)
IDS Life Series Fund, Inc.
Six months ended Oct. 31, 1997 (Unaudited)
Managed Government International
Portfolio Securities Equity
Portfolio Portfolio
Investment income
Income:
<S> <C> <C> <C>
Dividends $ 1,305,623 $ -- $ 908,792
Interest 6,671,947 448,871 362,905
Less foreign taxes withheld (1,800) -- (42,280)
------ ------- -------
Total income 7,975,770 448,871 1,229,417
--------- ------- ---------
Expenses (Note 2):
Investment management services fee 1,649,021 48,806 746,166
Custodian fees 36,941 4,500 72,000
Audit fees 7,000 4,000 6,000
Directors fees 3,869 500 1,000
Printing and postage 117,300 3,000 5,000
Other 11,166 809 547
------ --- ---
Total expenses 1,825,297 61,615 830,713
Less expenses voluntarily reimbursed by IDS Life -- (5,836) (6,003)
--------- ------ ------
Total expenses-- net 1,825,297 55,779 824,710
--------- ------ -------
Investment income (loss)-- net 6,150,473 393,092 404,707
--------- ------- -------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on:
Security transactons (Note 3) (net of foreign taxes withheld
of $47,957 for International Equity Portfolio) 18,523,335 25,841 4,250,803
Foreign currency transactions -- -- (445,191)
Options contracts written 112,771 -- 100,105
------- ------ -------
Net realized gain (loss) on investments 18,636,106 25,841 3,905,717
Net change in unrealized appreciation (depreciation) on investments
and on translation of assets and liabilities in foreign currencies 26,748,174 471,490 2,523,591
---------- ------- ---------
Net gain (loss) on investments and foreign currencies 45,384,280 497,331 6,429,308
---------- ------- ---------
Net increase (decrease) in net assets resulting from operations $51,534,753 $890,423 $6,834,015
=========== ======== ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Life Series Fund, Inc.
Equity Income
Portfolio Portfolio
Six months ended Year ended Six months ended Year ended
Oct. 31, 1997 April 30, 1997 Oct. 31, 1997 April 30, 1997
(Unaudited) (Unaudited)
Operations and distributions
<S> <C> <C> <C> <C>
Investment income (loss)-- net $ (905,090) $ 1,090,051 $ 2,369,516 $ 4,145,791
Net realized gain (loss) on investments 79,039,531 25,205,763 256,070 872,910
Net change in unrealized appreciation
(depreciation) on investments and on translation
of assets and liabilities in foreign currencies 72,838,104 (47,584,150) 1,405,568 (278,890)
---------- ----------- --------- --------
Net increase (decrease) in net assets resulting from operations 150,972,545 (21,288,336) 4,031,154 4,739,811
----------- ----------- --------- ---------
Distributions to shareholders from:
Net investment income (20,999) (1,069,807) (2,369,516) (4,144,980)
Excess distribution of net investment income -- -- -- (811)
Net realized gain (25,086,345) (73,838,149) (287,088) --
----------- ----------- -------- ---------
Total distributions (25,107,344) (74,907,956) (2,656,604) (4,145,791)
----------- ----------- ---------- ----------
Capital share transactions (Note 5)
Proceeds from sales 52,441,086 134,772,812 6,764,956 12,860,826
Reinvested distributions at net asset value 25,107,344 74,907,956 2,656,604 4,145,791
Payments for redemptions (6,467,541) (10,378,879) (3,362,606) (5,832,042)
---------- ----------- ---------- ----------
Increase (decrease) in net assets from capital share transactions 71,080,889 199,301,889 6,058,954 11,174,575
---------- ----------- --------- ----------
Total increase (decrease) in net assets 196,946,090 103,105,597 7,433,504 11,768,595
Net assets at beginning of period 551,517,996 448,412,399 66,744,758 54,976,163
----------- ----------- ---------- ----------
Net assets at end of period $748,464,086 $551,517,996 $74,178,262 $66,744,758
============ ============ =========== ===========
Undistributed (excess of distributions over) net investment income $ (905,090) $ 20,999 $ 19,838 $ 19,838
------------ ------------ ----------- -----------
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Statements of changes in net assets (continued)
IDS Life Series Fund, Inc.
Money Market Managed
Portfolio Portfolio
Six months ended Year ended Six months ended Year ended
Oct. 31, 1997 April 30, 1997 Oct. 31, 1997 April 30, 1997
(Unaudited) (Unaudited)
Operations and distributions
<S> <C> <C> <C> <C>
Investment income (loss)-- net $ 770,582 $ 950,435 $ 6,150,473 $ 12,657,967
Net realized gain (loss) on investments (146) (79) 18,636,106 31,253,972
Net change in unrealized appreciation
(depreciation) on investments and on translation
of assets and liabilities in foreign currencies -- -- 26,748,174 (1,450,532)
---------- ----------
Net increase (decrease) in net assets resulting from operations 770,436 950,356 51,534,753 42,461,407
------- ------- ---------- ----------
Distributions to shareholders from:
Net investment income (770,582) (950,435) (6,150,414) (12,603,155)
Excess distribution of net investment income -- -- -- (55,452)
Net realized gain -- -- (31,257,376) (13,910,481)
----------- -----------
Total distributions (770,582) (950,435) (37,407,790) (26,569,088)
-------- -------- ----------- -----------
Capital share transactions (Note 5)
Proceeds from sales 10,026,714 22,306,772 31,675,266 61,977,979
Reinvested distributions at net asset value 770,582 950,435 37,407,790 26,569,088
Payments for redemptions (7,705,955) (9,029,770) (5,265,727) (10,434,788)
---------- ---------- ---------- -----------
Increase (decrease) in net assets from capital share transactions 3,091,341 14,227,437 63,817,329 78,112,279
--------- ---------- ---------- ----------
Total increase (decrease) in net assets 3,091,195 14,227,358 77,944,292 94,004,598
Net assets at beginning of period 28,545,713 14,318,355 410,736,891 316,732,293
---------- ---------- ----------- -----------
Net assets at end of period $31,636,908 $28,545,713 $488,681,183 $410,736,891
=========== =========== ============ ============
Undistributed (excess of distributions over) net investment income $ -- $ -- $ (91,782) $ (91,841)
--------- --------- ------------ ------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets (continued)
IDS Life Series Fund, Inc.
Government Securities International Equity
Portfolio Portfolio
Six months ended Year ended Six months ended Year ended
Oct. 31, 1997 April 30, 1997 Oct. 31, 1997 April 30, 1997
(Unaudited) (Unaudited)
Operations and distributions
<S> <C> <C> <C> <C>
Investment income (loss)-- net $ 393,092 $ 769,224 $ 404,707 $ 212,955
Net realized gain (loss) on investments 25,841 129,567 3,905,717 4,046,978
Net change in unrealized appreciation
(depreciation) on investments and on translation
of assets and liabilities in foreign currencies 471,490 (188,485) 2,523,591 (6,133,514)
------- -------- --------- ----------
Net increase (decrease) in net assets resulting from operations 890,423 710,306 6,834,015 (1,424,511)
------- ------- --------- ----------
Distributions to shareholders from:
Net investment income (374,708) (762,735) (277,255) (662,648)
Excess distributions of net investment income (18,384) (6,588) -- (108,688)
Net realized gain (141,363) (103,298) (3,978,926) (5,909,647)
-------- -------- ---------- ----------
Total distributions (534,455) (872,621) (4,256,181) (6,680,983)
-------- -------- ---------- ----------
Capital share transactions (Note 5)
Proceeds from sales 2,779,740 3,256,810 31,191,447 76,861,699
Reinvested distributions at net asset value 534,455 872,621 4,256,181 6,680,983
Payments for redemptions (2,172,029) (3,054,279) (1,405,458) (1,624,761)
---------- ---------- ---------- ----------
Increase (decrease) in net assets from capital share transactions 1,142,166 1,075,152 34,042,170 81,917,921
--------- --------- ---------- ----------
Total increase (decrease) in net assets 1,498,134 912,837 36,620,004 73,812,427
Net assets at beginning of period 13,377,242 12,464,405 125,873,862 52,061,435
---------- ---------- ----------- ----------
Net assets at end of period $14,875,376 $13,377,242 $162,493,866 $125,873,862
=========== =========== ============ ============
Undistributed (excess of distributions over) net investment income $ (18,384) $ (18,384) $ 94,691 $ (32,761)
----------- ----------- ------------ ------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to financial statements
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 invests 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
traded on national securities exchanges or included in national market
systems are valued at the last quoted sales price. Debt securities are
generally traded in the over-the-counter market and are valued at a price
deemed best to reflect fair value as quoted by dealers who make markets in
these securities or by an independent pricing service. Securities for
which market quotations are not readily available are valued at fair value
according to methods selected in good faith by the board. Short-term
securities in all Portfolios, except Money Market Portfolio, 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 Portfolios,
except Money Market Portfolio, may buy and 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 Portfolios, except Money Market Portfolio, may buy and sell financial
future contracts. Risks of entering into future contracts and related
options include the possibility that there may be an illiquid market and
that a change in the value of the contract or option may not correlate
with changes in the value of the underlying securities.
Upon entering into a futures contract, the portfolios are required to
deposit either cash or securities in an amount (initial margin) equal to a
certain percentage of the contract value. Subsequent payments (variation
margin) are made or received by the portfolios each day. The variation
margin payments are equal to the daily changes in the contract value and
are recorded as unrealized gains and losses. The portfolios recognize a
realized gain or loss when the contract is closed or expires.
Foreign currency translations and 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 Portfolios, except Money Market Portfolio, 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, 1997, 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, 1997 was $201,584 and $676,160, which represents
0.3% and 0.1% 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.
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, 1997, Government
Securities Portfolio had entered into outstanding when-issued or
forward-commitments of $303,000.
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, 1997, dividends declared for each portfolio payable Nov. 1,
1997 are as follows:
Income $.057
Money Market $.004
Managed $.105
Government Securities $.047
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, when
available, 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.
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, 1997, cost of purchases and proceeds
from sales of securities aggregated, respectively, $118,422,001 and
$114,983,648 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 $638,936,071 $524,900,978
Income 32,903,379 25,589,491
Managed 285,113,889 246,663,223
Government Securities 5,272,821 3,802,411
International Equity 198,217,146 186,142,022
Realized gains and losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with IDS Life were
$1,917, $6,915 and $1,230 for Equity Portfolio, Managed Portfolio and
International Equity Portfolio, respectively, for the six months ended
Oct. 31, 1997.
4
Foreign currency
contracts
At Oct. 31, 1997, International Equity Portfolio had entered into foreign
currency exchange contracts that obligate the Portfolio to deliver
currencies at specified future dates. The unrealized appreciation and/or
depreciation on these contracts is included in the accompanying financial
statements. See Summary of significant accounting policies. The terms of
the open contracts are as follows:
Currency to Currency to Unrealized Unrealized
Exchange date be delivered be received appreciation depreciation
Nov. 3, 1997 443,325 312,245 $ -- $4,100
Swiss Franc U.S. Dollar
Nov. 4, 1997 110,302 78,451 -- 257
Swiss Franc U.S. Dollar
Nov. 4, 1997 1,394,325 8,281,870 38,029 --
U.S. Dollar French Franc
Nov. 28, 1997 826,040 4,783,766 1,314 --
U.S. Dollar French Franc
Nov. 28, 1997 148,844 866,235 972 --
U.S. Dollar French Franc
Feb. 5, 1998 1,087,000,000 9,370,690 205,313 --
Japanese Yen U.S. Dollar ------- -----
$245,628 $4,357
<PAGE>
<TABLE>
<CAPTION>
5
Capital share
transactions
Transactions in shares of each portfolio for the periods indicated are as
follows:
Number of shares: Six months ended Oct. 31, 1997
Money Government International
Equity Income Market Managed Securities Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C> <C>
Sold 1,859,014 661,039 10,027,674 1,738,388 278,445 1,934,465
Issued for reinvested distributions 862,848 259,205 770,656 2,074,290 53,359 253,084
Redeemed (224,632) (328,824) (7,706,700) (290,391) (217,063) (85,437)
-------- -------- ---------- -------- -------- -------
Net increase (decrease) 2,497,230 591,420 3,091,630 3,522,287 114,741 2,102,112
--------- ------- --------- --------- ------- ---------
Number of shares: Year ended April 30, 1997
Money Government International
Equity Income Market Managed Securities Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sold 5,247,248 1,285,296 22,308,722 3,697,780 326,772 5,004,552
Issued for reinvested distributions 3,352,450 412,933 950,526 1,664,945 85,930 471,553
Redeemed (436,609) (582,861) (9,030,614) (633,327) (307,264) (112,948)
-------- -------- ---------- -------- -------- --------
Net increase (decrease) 8,163,089 1,115,368 14,228,634 4,729,398 105,438 5,363,157
--------- --------- ---------- --------- ------- ---------
</TABLE>
<PAGE>
6
Option contracts
written
The number of contracts and premium amounts associated with option
contracts written by Managed Portfolio during the six months ended Oct.
31, 1997 is as follows:
Six months ended Oct. 31, 1997
Calls
Contracts Premium
Balance April 30, 1997 -- $ --
Opened 200 161,895
Closed (200) (161,895)
Expired -- --
--- -------
Balance Oct. 31, 1997 -- $ --
The number of contracts and premium amounts associated with option
contracts written by International Equity Portfolio during the six months
ended Oct. 31, 1997 as follows:
Six months ended Oct. 31, 1997
Calls
Contracts Premium
Balance April 30, 1997 -- $ --
Opened 170 141,860
Closed (170) (141,860)
Expired -- --
--- -------
Balance Oct. 31, 1997 -- $ --
<PAGE>
<TABLE>
<CAPTION>
Equity Portfolio
Financial highlights
The tables below show certain important financial information for evaluating
each portfolio's results.
7
Financial
highlights
Fiscal period ended April 30,
Per share income and capital changesa
1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989
Net asset value,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
beginning of period $23.52 $29.34 $20.05 $18.10 $16.87 $16.01 $13.94 $12.77 $12.16 $10.79
Income from investment operations:
Net investment income (loss) (.03) .05 .03 .10 .06 .03 .03 .13 .35 .36
Net gains (losses) (both 6.39 (1.34) 9.30 2.40 3.26 1.40 2.90 2.09 .61 1.37
realized and unrealized)
Total from investment
operations 6.36 (1.29) 9.33 2.50 3.32 1.43 2.93 2.22 .96 1.73
Less distributions:
Dividends from net -- (.05) (.03) (.10) (.06) (.03) (.03) (.13) (.35) (.36)
investment income
Distributions from (1.03) (4.48) (.01) (.45) (2.03) (.54) (.83) (.92) -- --
realized gains
Total distributions (1.03) (4.53) (.04) (.55) (2.09) (.57) (.86) (1.05) (.35) (.36)
Net asset value, $28.85 $23.52 $29.34 $20.05 $18.10 $16.87 $16.01 $13.94 $12.77 $12.16
end of period
Ratios/supplemental data 1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989
Net assets, end of period
(in thousands) $748,464 $551,518 $448,412 $241,032 $151,860 $87,742 $55,265 $33,933 $16,355 $11,620
Ratio of expenses to .78%d .76% .76% .77% .75% .79% .80% .80%c .80%c .80%
average daily net assets
Ratio of net income (loss) to (.26%)d .21% .15% .56% .33% .21% .17% 1.03% 2.61% 3.32%
average daily net assets
Portfolio turnover rate 80% 231% 184% 144% 109% 81% 52% 79% 190% 48%
(excluding short-term
securities)
Total returne 27.01% (3.66%) 46.62% 13.87% 19.72% 8.92% 21.06% 18.55% 7.84% 16.18%
Average brokerage $.0304 $ .0421 -- -- -- -- -- -- -- --
commission ratef
a For a share outstanding throughout the period. Rounded to the nearest
cent.
b Six months ended Oct. 31, 1997 (Unaudited).
c Commencing on May 1, 1989, IDS Life voluntarily limited total operating
expenses to 0.80% of average daily net assets. Had IDS Life not done so,
the ratio of expenses to average daily net assets would have been 0.86%
and 0.90% for the years ended April 30, 1991 and 1990, respectively.
d Adjusted to an annual basis.
e Total return does not reflect the expenses that apply to the subaccounts
or the policies.
f Effective fiscal year 1997, the Fund is required to disclose an average
brokerage commission rate per share for security trades on which
commissions are charged. The comparability of this information may be
affected by the fact that commission rates per share vary significantly
among foreign countries.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Income Portfolio
Financial highlights (continued)
Fiscal period ended April 30,
Per share income and capital changesa
1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $10.03 $9.93 $9.64 $9.71 $10.19 $ 9.40 $9.19 $8.55 $8.93 $9.05
beginning of period
Income from investment operations:
Net investment income (loss) .34 .68 .68 .69 .71 .76 .73 .75 .75 .70
Net gains (losses) (both .25 .10 .29 (.07) (.48) .80 .21 .64 (.40) (.12)
realized and unrealized)
Total from investment
operations .59 .78 .97 .62 .23 1.56 .94 1.39 .35 .58
Less distributions:
Dividends from net (.34) (.68) (.68) (.69) (.71) (.77) (.73) (.75) (.73) (.70)
investment income
Distributions from
realized gain (.04) -- -- -- -- -- -- -- -- --
Total distributions (.38) (.68) (.68) (.69) (.71) (.77) (.73) (.75) (.73) (.70)
Net asset value,
end of period $10.24 $10.03 $9.93 $9.64 $ 9.71 $10.19 $9.40 $9.19 $8.55 $8.93
Ratios/supplemental data
1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989
Net assets, end of period $74,178 $66,745 $54,976 $37,823 $33,770 $22,641 $16,306 $11,949 $8,831 $6,203
(in thousands)
Ratio of expenses to
average daily net assets .78%c .80% .80% .80% .80% .80%d .80%d .80%d .80%d 1.11%
Ratio of net income (loss) to 6.71%c 6.73% 6.72% 7.23% 6.83% 7.66% 7.86% 8.41% 8.02% 7.87%
average daily net assets
Portfolio turnover rate 40% 106% 36% 55% 60% 47% 75% 55% 60% 99%
(excluding short-term securities)
Total return e 5.97% 8.05% 10.02% 6.67% 2.12% 17.17% 10.60% 16.77% 3.75% 6.70%
a For a share outstanding throughout the period. Rounded to the nearest
cent.
b Six months ended Oct. 31, 1997 (Unaudited).
c Adjusted to an annual basis.
d Commencing on May 1, 1989, IDS Life voluntarily limited total operating
expenses to 0.80% 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.
e Total return does not reflect the expenses that apply to the subaccounts
or the policies.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Money Market Portfolio
Financial highlights (continued)
Fiscal period ended April 30,
Per share income and capital changesa
1997d 1997 1996 1995 1994 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
beginning of period
Income from investment operations:
Net investment income (loss) .03 .05 .05 .04 .03 .03 .05 .07 .08 .07
Less distributions:
Dividends from net (.03) (.05) (.05) (.04) (.03) (.03) (.05) (.07) (.08) (.07)
investment income
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
end of period
Ratios/supplemental data
1997 d 1997 1996 1995 1994 1993 1992 1991 1990 1989
Net assets, end of period $31,637 $28,546 $14,318 $9,885 $9,557 $8,181 $9,771 $9,596 $6,321 $4,721
(in thousands)
Ratio of expenses to .60%b,e .60%b .60%b .60%b .60%b .60%b .60%b .60%b .60%b 1.10%b
average daily net assets
Ratio of net income (loss) to 5.02%e 4.81% 5.04% 4.45% 2.61% 3.00% 4.60% 7.06% 8.26% 7.38%
average daily net assets
Total returnc 2.56% 4.86% 5.03% 4.50% 2.61% 3.04% 4.71% 7.41% 8.61% 7.52%
a For a share outstanding throughout the period. Rounded to the nearest
cent.
b Commencing on April 5, 1989, IDS Life voluntarily limited total
operating expenses to 0.60% of average daily net assets. Had IDS Life
not done so, the ratio of expenses to average daily net assets would
have been 0.62% for the six month period ended Oct. 31, 1997,
0.64%, 0.73%, 0.77%, 0.71%, 0.74%, 0.75%, 0.86%, 0.96% and 1.35% for
the years ended April 30, 1997, 1996, 1995, 1994, 1993, 1992, 1991,
1990, and 1989, respectively.
c Total return does not reflect the expenses that apply to the subaccounts
or the policies. d Six months ended Oct. 31, 1997 (Unaudited).
e Adjusted to an annual basis.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Managed Portfolio
Financial highlights (continued)
Fiscal period ended April 30,
Per share income and capital changesa
1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $17.16 $16.49 $14.11 $13.85 $13.84 $13.55 $13.29 $12.80 $11.22 $10.42
beginning of period
Income from investment operation:
Net investment income (loss) .24 .57 .57 .44 .42 .44 .48 .57 .57 .61
Net gains (losses) (both 1.91 1.37 2.51 .30 1.40 1.44 1.87 1.90 1.58 .80
realized and unrealized)
Total from investment 2.15 1.94 3.08 .74 1.82 1.88 2.35 2.47 2.15 1.41
operations
Less distributions:
Dividends from net (.24) (.57) (.57) (.44) (.42) (.44) (.48) (.57) (.57) (.61)
investment income
Distributions from (1.27) (.70) (.13) (.04) (1.39) (1.15) (1.61) (1.41) -- --
realized gains
Total distributions (1.51) (1.27) (.70) (.48) (1.81) (1.59) (2.09) (1.98) (.57) (.61)
Net asset value, $17.80 $17.16 $16.49 $14.11 $13.85 $13.84 $13.55 $13.29 $12.80 $11.22
end of period
Ratios/supplemental data
1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989
Net assets, end of period $488,681 $410,737 $316,732 $219,986 $160,706 $100,139 $72,366 $51,442 $32,725 $25,807
(in thousands)
Ratio of expenses to .78%c .75% .78% .78% .77% .79% .80% .80%d 80%d .72%d
average daily net assets
Ratio of net income (loss) 2.63%c 3.46% 3.73% 3.27% 2.83% 3.15% 3.40% 4.38% 4.54% 5.76%
to average daily net assets
Portfolio turnover rate 60% 100% 83% 143% 106% 118% 122% 71% 107% 58%
(excluding short-term
securities)
Total returne 12.53% 12.46% 22.27% 5.47% 13.30% 14.03% 17.84% 20.18% 19.37% 13.88%
Average brokerage $.0517 $.0543 -- -- -- -- -- -- -- --
commission ratef
a For a share outstanding throughout the period. Rounded to the nearest
cent.
b Six months ended Oct. 31, 1997 (Unaudited).
c Adjusted to an annual basis.
d Commencing on April 5, 1989, IDS Life voluntarily limited total operating
expenses to 0.80% 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.
e Total return does not reflect the expenses that apply to the subaccounts
or the policies.
f Effective fiscal year 1997, the Fund is required to disclose an average
brokerage commission rate per share for security trades on which
commissions are charged. The comparability of this information may be
affected by the fact that commission rates per share vary significantly
among foreign countries.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Government Securities Portfolio
Financial highlights (continued)
Fiscal period ended April 30,
Per share income and capital changesa
1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $9.87 $9.98 $9.85 $9.88 $10.54 $ 9.69 $9.44 $8.88 $8.97 $9.00
beginning of period
Income from investment operations:
Net investment income (loss) .28 .59 .61 .59 .60 .63 .66 .67 .69 .64
Net gains (losses) (both .36 (.03) .13 (.03) (.56) .94 .28 .56 (.09) (.03)
realized and unrealized)
Total from investment .64 .56 .74 .56 .04 1.57 .94 1.23 .60 .61
operations
Less distributions:
Dividends from net (.28) (.59) (.61) (.59) (.60) (.63) (.66) (.67) (.69) (.64)
investment income
Distributions from (.11) (.08) -- -- (.10) (.09) (.03) -- -- --
realized gains
Total distributions (.39) (.67) (.61) (.59) (.70) (.72) (.69) (.67) (.69) (.64)
Net asset value, $10.12 $9.87 $9.98 $9.85 $ 9.88 $10.54 $9.69 $9.44 $8.88 $8.97
end of period
Ratios/supplemental data
1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989
Net assets, end of period $14,875 $13,377 $12,464 $11,440 $11,185 $9,619 $7,853 $6,314 $3,184 $2,773
(in thousands)
Ratio of expenses to .80%c,d .80%d .80%d .80%d .80%d .80%d .80%d .80%d .80%d 1.12%d
average daily net assets
Ratio of net income (loss) to 5.67%c 5.88% 5.98% 6.02% 5.59% 6.10% 6.79% 7.24% 7.34% 7.19%
average daily net assets
Portfolio turnover rate 28% 62% 38% 12% 32% 15% 11% 18% 18% 14%
(excluding short-term
securities)
Total returne 6.57% 5.82% 7.45% 5.98% 0.16% 16.58% 10.20% 14.30% 6.50% 7.12%
a For a share outstanding throughout the period. Rounded to the nearest
cent.
b Six months ended Oct. 31, 1997 (Unaudited).
c Adjusted to an annual basis.
d 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 0.89%
for the six month period ended Oct. 31, 1997, 0.85%, 0.88%, 0.87%, 0.85%,
0.88%, 0.92%, 1.08%, 1.12% and 1.21% for the years ended April 30, 1997,
1996, 1995, 1994, 1993, 1992, 1991, 1990 and 1989, respectively.
e Total return does not reflect the expenses that apply to the subaccounts
or the policies.
</TABLE>
<PAGE>
International Equity Portfolio
Financial highlights
Fiscal period ended April 30,
Per share income and capital changesa
1997c 1997 1996 1995b
Net asset value, $14.73 16.35 $10.29 $10.00
beginning of period
Income from investment operations:
Net investment income (loss) .04 .14 .11 .15
Net gains (losses) (both (.94) (.24) 6.08 .29
realized and unrealized)
Total from investment operations (.98) (.10) 6.19 .44
Less distributions:
Dividends from net (.03) (.15) (.13) (.15)
investment income
Distributions from (0.42) (1.37) -- --
realized gains
Total distributions (0.45) (1.52) (.13) (.15)
Net asset value,
end of period $15.26 $14.73 $16.35 $10.29
Ratios/supplemental data 1997c 1997 1996 1995b
Net assets, end of period $162,494 $125,874 $52,061 $8,497
(in thousands)
Ratio of expenses to 1.05%d,e 1.05%e 1.05%e 1.00%d,e
average daily net assets
Ratio of net income (loss) to .52% d .73% .92% 5.66%d
average daily net assets
Portfolio turnover rate 131% 151% 172% 40%
(excluding short-term
securities)
Total returnf 6.38% (.53%) 60.47% 4.38%
Average brokerage commission rateg $.0016 $.0022 -- --
a For a share outstanding throughout the period. Rounded to the nearest
cent.
b Commencement of operations. Period from Oct. 28, 1994 to Oct. 31, 1997.
c Six months ended Oct. 31, 1997 (Unaudited).
d Adjusted to an annual basis.
e IDS Life voluntarily limited total operating expenses. Had IDS not done
so, the ratio of expenses to average daily net assets would have been
1.06% for the six month period ended Oct. 31, 1997, 1.22%, 1.32% and 1.76%
for the years ended April 30, 1997, 1996 and 1995, respectively.
f Total return does not reflect the expenses that apply to the subaccounts
or the policies.
g Effective fiscal year 1997, the Fund is required to disclose an average
brokerage commission rate per share for security trades on which
commissions are charged. The comparability of this information may be
affected by the fact that commission rates per share vary significantly
among foreign countries.
<PAGE>
Investments in securities
IDS Life Series Fund, Inc.
Equity Portfolio (Percentages represent value of
Oct. 31, 1997 (Unaudited) investments compared to net assets)
Common stocks (99.4%)
Issuer Shares Value(a)
Banks and savings & loans (3.0%)
American Capital Strategies 200,000 $ 3,600,000
BankBoston 50,000 4,053,125
TCF Financial 77,660 4,416,913
Washington Mutual 150,000 10,265,625
Total 22,335,663
Building materials & construction (2.1%)
Fairfield Communities 72,650 3,192,059
Hospitality Worldwide Services200,000(b) 2,325,000
Tyco Intl 280,000 10,570,000
Total 16,087,059
Chemicals (3.5%)
Allied Waste Inds 472,800 9,633,300
Praxair 101,000 4,399,813
USA Waste Services 333,825(b) 12,351,525
Total 26,384,638
Commercial finance (0.6%)
Finova Group 100,000 4,393,750
Communications equipment & services (4.3%)
ADC Telecommunications 100,000(b) 3,312,500
Advanced Fibre
Communications 200,000(b) 5,812,500
CIENA 250,000(b) 13,750,000
Powerwave Technologies 300,000(b) 9,262,500
Total 32,137,500
Computers & office equipment (22.4%)
Adaptec 160,000(b) 7,750,000
BEA Systems 350,000(b) 4,725,000
BMC Software 112,000(b) 6,762,000
Cisco Systems 70,000(b) 5,742,187
Computer Task Group 58,500 1,652,625
CSG Systems Intl 100,000(b) 3,918,750
DAOU Systems 200,000 5,275,000
E*TRADE Group 130,000(b) 4,013,750
Envoy 340,000(b) 9,520,000
Equifax 125,000 3,882,813
HPR 100,000(b) 2,400,000
Infinity Financial Technology225,000(b) 3,459,375
Information Management
Associates 300,000(b) 3,675,000
MAXIMUS 85,000(b) 2,380,000
McAfee Associates 250,000(b) 12,437,500
Network General 220,000(b) 4,455,000
New Era of Networks 250,000(b) 3,125,000
ONSALE 200,000 4,600,000
Parametric Technology 200,000(b) 8,825,000
Pegasus Systems 150,000(b) 2,325,000
PeopleSoft 130,000(b) 8,173,750
Pervasive Software 250,000 1,875,000
Security Dynamics
Technologies 300,000(b) 10,162,500
Sterling Commerce 360,000(b) 11,947,500
SunGard Data Systems 300,000(b) 7,087,500
TSI Intl Software 100,000(b) 1,087,500
Viasoft 500,000(b) 20,500,000
Whittman-Hart 200,000(b) 5,800,000
Total 167,557,750
Electronics (8.6%)
Harris 200,000 8,725,000
Kent Electronics 150,000(b) 5,240,625
KLA-Tencor 250,000(b) 10,984,375
Maxim Integrated Products 55,000(b) 3,643,750
Molex 82,500 3,093,750
PRI Automation 100,000(b) 3,825,000
Sawtek 200,000(b) 6,800,000
Standard Microsystems 180,000(b) 2,081,250
Teradyne 150,000(b) 5,615,625
Transcrypt Intl 180,000(b) 3,960,000
Uniphase 50,000(b) 3,356,250
Unitrode 250,000(b) 6,703,125
Total 64,028,750
Energy (0.5%)
Newfield Exploration 140,000(b) 3,797,500
Energy equipment & services (6.0%)
Atwood Oceanics 20,000(b) 2,215,000
Baker Hughes 150,000 6,890,625
BJ Services 75,000(b) 6,356,250
Cooper Cameron 80,000(b) 5,780,000
Noble Drilling 200,000(b) 7,112,500
Santa Fe Intl 200,000(b) 9,837,500
Tidewater 100,000 6,568,750
Total 44,760,625
Financial services (2.8%)
Franklin Resources 92,600 8,322,425
Imperial Credit Commercial
Mtge Investors REIT 225,000(b) 3,712,500
PMT Services 180,000(b) 2,902,500
Providian Financial 160,000(b) 5,920,000
Total 20,857,425
Food (1.2%)
Hormel Foods 100,000 3,006,250
JP Foodservice 100,000(b) 3,193,750
Rykoff-Sexton 120,000 2,580,000
Total 8,780,000
Health care (8.9%)
ALZA 106,100(b) 2,765,231
Boron, LePore, & Associates 78,500 1,913,438
Boston Scientific 125,000(b) 5,687,500
Centocor 185,000(b) 8,140,000
Columbia Laboratories 100,000 1,600,000
Dura Pharmaceuticals 100,000 4,837,500
Guidant 160,000 9,200,000
IDEC Pharmaceuticals 110,000(b) 4,193,750
NeXstar Pharmaceuticals 200,000 2,925,000
Steris 275,000(b) 10,931,250
Synaptic Pharmaceutical 125,000 1,578,125
Watson Pharmaceuticals 400,000(b) 12,700,000
Total 66,471,794
Health care services (8.8%)
AmeriSource Health Cl A 100,000(b) 5,937,500
Atria Communities 300,000(b) 4,987,500
BioReliance 80,000(b) 1,780,000
Gulf South Medical Supply 250,000(b) 8,250,000
HBO & Co 424,000 18,444,000
Health Management
Associates Cl A 240,000(b) 5,850,000
HEALTHSOUTH 140,000(b) 3,578,750
NovaCare 270,000(b) 3,526,875
Rock of Ages 170,000 3,230,000
Sullivan Dental Products 200,000 4,675,000
Tenet Healthcare 194,000(b) 5,929,125
Total 66,188,750
Insurance (3.1%)
Nationwide Financial
Services Cl A 100,000 3,043,750
Protective Life 98,000 5,181,750
Provident Cos 170,000 5,673,750
SunAmerica 173,400 6,231,563
UNUM 70,000 3,412,500
Total 23,543,313
Leisure time & entertainment (1.2%)
Regal Cinemas 200,000(b) 4,600,000
Royal Caribbean Cruises 100,000 4,643,750
Total 9,243,750
Media (3.0%)
CMP Media Cl A 75,000(b) 1,387,500
Outdoor Systems 400,000(b) 12,300,000
Sinclair Broadcast Group A 160,000 5,840,000
Telemundo Group Cl A 100,000(b) 3,250,000
Total 22,777,500
Paper & packaging (0.8%)
Sealed Air 113,700(b) 5,862,656
Restaurants & lodging (1.0%)
Papa John's Intl 250,000 7,390,625
Retail (7.2%)
CDW Computer Centers 100,000(b) 6,200,000
CVS 100,000 6,131,250
Dollar General 250,000 8,265,625
Dominick's Supermarkets 260,000(b) 9,490,000
Kohl's 86,800(b) 5,826,450
Office Depot 280,000(b) 5,775,000
Rite Aid 81,000 4,809,375
Stage Stores 200,000(b) 7,300,000
Total 53,797,700
Transportation (0.5%)
Yellow Corp 130,000(b) 3,566,875
Utilities -- telephone (1.9%)
LCI Intl 200,000(b) 5,175,000
NEXTLINK Communications 150,000 3,393,750
STAR Telecommunications 150,000(b) 3,468,750
STARTEC Global
Communications 125,000 1,859,375
Total 13,896,875
Miscellaneous (0.1%)
Mac-Gray 50,000(b) 737,500
Foreign (7.9%)(c)
3DLabs 300,000(b) 6,375,000
ACE 38,000 3,531,625
ASM Lithography Holding 50,000(b) 3,662,500
BioChem Pharma 300,000(b) 7,518,750
Cinar Films 100,000(b) 3,887,500
Cognicase 200,000(b) 2,525,000
Cognos 350,000(b) 8,006,250
Dassault Systems ADR 155,000 4,650,000
Petroleum Geo-Services ADR 65,000(b) 4,501,250
RADCOM 260,000 2,405,000
Steiner Leisure 150,000(b) 4,050,000
Taiwan Semiconductor Mfg 400,000 7,925,000
Total 59,037,875
Total common stocks
(Cost: $627,895,974) $743,635,873
Short-term securities (0.5%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
U.S. government agencies (0.3%)
Federal Home Loan Bank Disc Nts
11-17-97 5.43% $1,300,000 $1,296,874
11-24-97 5.47 800,000 797,214
Total 2,094,088
Commercial paper (0.2%)
Paccar Financial
11-04-97 5.53 500,000 499,770
Southern California Gas
11-14-97 5.51 1,000,000 998,018
Total 1,497,788
Total short-term securities
(Cost: $3,591,876) $ 3,591,876
Total investments in securities
(Cost: $631,487,850)(d) $747,227,749
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 security values are stated in U.S. Dollars.
(d) At Oct. 31, 1997, the cost of securities for federal income tax purposes was
approximately $631,488,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation.........................................$138,204,000
Unrealized depreciation..........................................(22,464,000)
Net unrealized appreciation.....................................$115,740,000
<PAGE>
Investments in securities
IDS Life Series Fund, Inc.
Income Portfolio (Percentages represent value of
Oct. 31, 1997 (Unaudited) investments compared to net assets)
Bonds (89.0%)
Issuer Coupon Maturity Principal Value(a)
rate year amount
U.S. government obligations (7.9%)
U.S. Treasury 5.875% 1999 $2,800,000 2,811,312
7.00 2006 2,400,000 2,572,296
TIPS 3.375 2007 507,430(h) 500,610
Total 5,884,218
Mortgage-backed securities (22.9%)
Federal Home Loan Mtge Corp 5.50 2009 727,292 747,830
6.50 2011 1,897,221 1,900,882
Collateralized Mtge Obligation 8.00 2020 185,000 192,921
8.50 2022 1,000,000 1,114,150
Federal Natl Mtge Assn 6.00 2011 1,820,539 1,792,958
6.50 2010 1,100,515 1,109,550
7.00 2003-26 2,926,275 2,948,560
7.50 2027 1,919,027 1,961,361
8.50 2027 2,680,464 2,805,401
Collateralized Mtge Obligation
Trust Series Z 8.00 2021 301,490(f) 305,680
Govt Natl Mtge Assn 6.50 2027 990,923 1,017,142
Merrill Lynch Mtge Investors 8.16 2021 188,475 189,829
Morgan Stanley
Collateralized Mtge Obligation 6.59 2028 876,445 880,553
Total 16,966,817
Aerospace & defense (0.8%)
BE Aerospace
Sr Sub Nts 9.875 2006 100,000 106,250
Goodrich (B.F.) 9.625 2001 150,000 165,365
Newport News Shipbuilding
Sr Nts 8.625 2006 75,000 77,813
Northrop-Grumman 7.00 2006 250,000 257,742
Total 607,170
Airlines (0.5%)
Continental Airlines 6.94 2015 392,157 397,800
Automotive & related (0.4%)
Arvin Capital 9.50 2027 250,000 272,723
Banks and savings & loans (4.6%)
Crestar Capital Trust I 8.16 2026 350,000 368,119
First Bank System 6.875 2007 400,000 409,288
Fleet/Norstar Financial
Sub Nts 9.00 2001 200,000 219,564
Greenpoint Capital Trust I 9.10 2027 500,000 216,342
Hubco Capital Trust 8.98 2027 500,000 538,214
Morgan (JP)
Medium-term Nts 4.00 2012 500,000(e) 483,210
Norwest
Sr Nts 6.375 2002 400,000 403,524
Socgen Real Estate 7.64 2049 500,000(c,e) 527,580
Washington Mutual Capital I 8.375 2027 200,000(c) 214,162
Total 3,380,003
Building materials & construction (1.3%)
Carlisle
Sr Nts 7.25 2007 500,000 521,365
Owens-Corning Fiberglass 9.375% 2012 100,000 116,928
Pulte
Sr Nts 7.00 2003 300,000 301,146
Southdown
Sr Sub Nts 10.00 2006 50,000 54,625
Total 994,064
Chemicals (0.7%)
USA Waste Services
Sr Nts 7.125 2007 500,000 516,255
Communications equipment & services (1.3%)
Iridium LLC/ Capital
Sr Nts 11.25 2005 100,000(c) 97,000
Jordan Telecommunication Products
Sr Nts 9.875 2007 250,000(c) 253,125
Phonetel Technologies
Sr Nts 12.00 2006 125,000 128,438
US West Capital Funding 6.85 2002 500,000 512,890
Total 991,453
Electronics (0.5%)
Thomas & Betts 6.50 2006 400,000 396,948
Energy (1.7%)
Clark Oil
Sr Nts 9.50 2004 100,000 102,875
Forcenergy
Sr Sub Nts 9.50 2006 50,000 52,375
Oryx Energy 8.125 2005 500,000 539,165
Parker & Parsley Petroleum 8.25 2007 500,000 557,140
Total 1,251,555
Energy equipment & services (1.3%)
DI Inds
Sr Nts 8.875 2007 150,000 156,000
Foster Wheeler 6.75 2005 300,000 303,318
Global Marine 7.125 2007 500,000(c) 516,495
Total 975,813
Financial services (2.6%)
Arcadia Financial
Sr Nts 11.50 2007 225,000 223,875
Avco Financial Services 7.25 1999 300,000 306,984
Barclays North America Capital 9.75 2021 300,000 343,236
Corporate Property Investors 7.18 2013 300,000(c) 301,140
Countrywide Funding
Medium-term Nts 8.42 1999 300,000 309,786
First Union REIT 8.875 2003 100,000 103,750
Property Trust America REIT 7.50 2014 300,000 303,612
Total 1,892,383
Food (0.3%)
Ameriserv Food
Sr Sub Nts 10.125 2007 100,000(c) 104,500
Chiquita Brands Intl 9.625 2004 100,000 106,000
Total 210,500
Furniture & appliances (0.3%)
Interface 9.50 2005 100,000 106,375
Lifestyle Furniture 10.875 2006 100,000 111,750
Total 218,125
Health care (0.2%)
Alaris Medical Systems 9.75 2006 150,000 157,125
Health care services (1.9%)
Columbia-HCA Healthcare 6.91 2005 100,000 98,771
La Petite Holdings
Sr Secured Nts 9.625 2001 200,000 209,000
Manor Care
Sr Nts 7.50 2006 250,000 264,575
Paracelsus Healthcare
Sr Sub Nts 10.00 2006 350,000 365,750
Tenet Healthcare
Sr Sub Nts 10.125 2005 250,000 275,000
Vencor
Sr Sub Nts 8.625 2007 200,000(c) 196,000
Total 1,409,096
Household products (0.1%)
Sweetheart Cup
Sr Sub Nts 10.50 2003 100,000 99,750
Industrial equipment & services (1.7%)
AGCO
Sr Sub Nts 8.50 2006 100,000 105,000
Aramark Services 7.10 2006 500,000 505,280
Case 7.25 2005 400,000 415,008
Motors and Gears
Sr Nts 10.75 2006 250,000(c) 263,750
Total 1,289,038
Insurance (2.3%)
American General Institute Capital 7.57 2045 250,000(c) 248,065
American United Life 7.75 2026 200,000(g) 201,584
Americo Life 9.25 2005 100,000 102,375
Conseco Financing Trust 8.70 2026 300,000 324,621
SAFECO Capital Trust I 8.07 2037 500,000(c) 519,030
Zurich Capital Trust I 8.38 2037 250,000(c) 274,845
Total 1,670,520
Leisure time & entertainment (1.5%)
Riviera Holdings
1st Mtg 10.00 2004 250,000 250,000
Time Warner 7.57 2024 350,000 354,344
Trump Holdings & Funding
Sr Nts 15.50 2005 250,000 288,750
United Artists Theatre 9.30 2015 97,413 99,848
Viacom 8.00 2006 100,000 98,000
Total 1,090,942
Media (3.0%)
Ackerley Communications
Sr Secured Nts 10.75 2003 100,000 107,000
Comcast
Sr Sub 9.125 2006 500,000 522,500
Lamar Advertising 9.625 2006 275,000 292,875
Lenfest Communications
Sr Nts 8.375 2005 250,000 250,625
MDC Communications
Sr Sub Nts 10.50 2006 100,000 107,750
Quebecor Printing 7.25 2007 500,000 526,640
Time Warner Entertainment 8.375 2033 250,000 277,690
Viacom Intl
Sr Sub Nts 10.25 2001 100,000 108,500
Total 2,193,580
Metals (0.7%)
Ryerson Tull 8.50 2001 500,000 518,750
Multi-industry conglomerates (1.6%)
Crane 7.25 1999 300,000 306,021
Fairchild 13.125 2006 65,000 65,650
Prime Succession
Sr Sub Nts 10.75 2004 85,000 93,925
USI American Holdings
Sr Nts 7.25 2006 425,000 426,921
Westinghouse Electric 8.875 2001 250,000 266,672
Total 1,159,189
Paper & packaging (2.5%)
Chesapeake 9.875 2003 100,000 114,821
Gaylord Container
Sr Nts 9.75 2007 150,000(c) 153,000
Sr Sub Deb 12.75 2005 100,000 108,750
Intl Paper 5.125 2012 85,000 72,654
Owens-Illinois
Sr Nts 8.10 2007 250,000 265,487
Repap Wisconsin
Sr Nts 9.25 2002 500,000 527,500
Scotia Pacific Holdings 7.95 2015 249,323 260,645
Silgan
Sr Sub Nts 9.00 2009 100,000 102,000
Warren (SD)
Sr Nts 12.00 2004 250,000 281,875
Total 1,886,732
Restaurants & lodging (0.3%)
Hammons (John Q) Hotels
1st Mtge 8.875 2004 250,000 255,000
Retail (1.5%)
Kroger
Sr Nts 8.15 2006 500,000 543,125
Maxim Group
Sr Nts 9.25 2007 250,000(c) 246,250
Pep Boys - Manny, Moe & Jack 7.00 2005 300,000 308,838
Total 1,098,213
Textiles & apparel (0.3%)
Dominion Textiles
Sr Nts 9.25 2006 200,000 207,500
Transportation (0.7%)
Enterprise Rent-A-Car USA Finance
Medium-term Nts 8.75 1999 300,000(c) 314,583
Ryder System 9.25 2001 150,000 164,343
Total 478,926
Utilities -- electric (3.2%)
AES
Sr Sub Nts 8.50 2007 165,000(c) 163,762
Cal Energy
Sr Nts 9.50 2006 250,000 270,000
Cleveland Electric Illuminating
1st Mtge 9.50 2005 100,000 111,402
CMS Energy
Sr Nts 8.13 2006 200,000(c) 206,180
Connecticut Light & Power
1st Mtge 7.75 2002 250,000 257,110
El Paso Electric 8.90 2006 100,000 109,125
First Palo Verde Funding 10.15 2016 94,000 99,405
Houston Ind 9.375 2001 150,000 165,240
Long Island Lighting 8.625 2004 500,000 534,330
Midland Funding II 11.75 2005 100,000 117,875
Sithe Independence Funding 9.00 2013 100,000 114,860
Western Massachusetts Electric
1st Mtge 7.375 2001 250,000 251,030
Total 2,400,319
Utilities -- gas (0.8%)
Columbia Gas 7.32 2010 500,000 513,405
Southwest Gas 9.75 2002 100,000 110,955
Total 624,360
Utilities -- telephone (1.6%)
Intermedia Communications
Sr Nts 8.875 2007 100,000(c) 98,500
Primus Telecommunications Group 11.75 2004 200,000 212,500
Teleport Communications
Zero Coupon Sr Disc Nts 10.50 2007 500,000(d) 391,250
WorldCom
Sr Nts 9.38 2004 435,800 468,485
Total 1,170,735
Miscellaneous (1.6%)
Adams Outdoor Advertising
Sr Nts 10.75 2006 100,000 108,750
Bayou Steel
1st Mtge 10.25 2001 250,000 257,500
BTI Telecommunications
Sr Nts 10.50 2007 125,000 126,875
Coty 10.25 2005 100,000 107,500
M & I Capital Trust 7.65 2026 300,000 305,625
Outsourcing Solutions
Sr Sub Nts 11.00 2006 140,000 155,750
Talton Holdings 11.00 2007 150,000 159,375
Total 1,221,375
Foreign (16.4%) (b)
Airplanes GPA Cl D
(U.S. Dollar) 10.875 2019 100,000 117,714
Alcan Aluminum
(U.S. Dollar) 8.875 2022 200,000 217,694
Banca Italy NY
(U.S. Dollar) 8.25 2007 300,000 331,050
Banco General
(U.S. Dollar) 7.70 2002 350,000(c) 346,668
CAF
(U.S. Dollar) 7.10 2003 300,000 307,413
City of Moscow
(U.S. Dollar) 9.50 2000 250,000(c) 243,125
Dao Heng Bank
(U.S. Dollar) Sub Nts 7.75 2007 500,000(c) 467,085
Daya Guna
(U.S. Dollar) 10.00 2007 100,000(c) 96,000
Doman Inds
(U.S. Dollar) Sr Nts 8.75 2004 500,000 490,000
Dominion Textiles
(U.S. Dollar) 8.875 2003 100,000 103,500
Espirito Santo Centrais
(U.S. Dollar) 10.00 2007 250,000(c) 237,500
Fresh Delmonte
(U.S. Dollar) 10.00 2003 200,000 210,500
Govt of Poland
(U.S. Dollar) 4.00 2014 650,000(e) 520,000
Govt of Russia
(U.S. Dollar) Zero Coupon 10.82 2020 325,000(d) 191,750
Greater Beijing First
(U.S. Dollar) 9.25 2004 100,000(c) 95,827
Grupo Iusacell
(U.S. Dollar) 10.00 2004 100,000(c) 97,500
Grupo Televisa
(U.S. Dollar) Sr Nts 11.875 2006 100,000 108,250
Guangdong Enterprises
(U.S. Dollar) 8.875 2007 200,000(c) 190,832
Gulf Canada Resources
(U.S. Dollar) Sub Deb 9.625 2005 500,000 542,500
Honam Oil Refinery
(U.S. Dollar) 7.125 2005 250,000(c) 216,750
Hutchison Whampo Finance
(U.S. Dollar) 6.95 2007 250,000(c) 231,793
(U.S. Dollar) 7.45 2017 125,000(c) 108,675
Hyundai Semiconductor
(U.S. Dollar) 8.625 2007 500,000(c) 470,300
Imexsa Export Trust
(U.S. Dollar) 10.125 2003 200,000(c) 202,000
Israel Electric
(U.S. Dollar) Sr Nts 7.25 2006 300,000 309,747
Lloyds Bank
(U.S. Dollar) 5.94 2049 750,000 675,637
Midland Bank
(U.S. Dollar) 6.06 2049 750,000 642,450
Ministry Finance Russia
(U.S. Dollar) 9.25 2001 300,000(c) 283,500
(U.S. Dollar) 10.00 2007 250,000(c) 228,125
Netia Holdings
(U.S. Dollar) 10.25 2007 100,000(c) 96,750
People's Republic of China
(U.S. Dollar) 7.375 2001 100,000 101,437
Petrozuata Finance
(U.S. Dollar) 8.22 2017 400,000(c) 418,660
Philippine Long Distance Telephone
(U.S. Dollar) 7.85 2007 250,000(c) 216,573
Quno
(U.S. Dollar) Sr Nts 9.125 2005 250,000 260,938
Ras Laffan Gas
(U.S. Dollar) 8.29 2014 500,000(c) 516,995
Repap New Brunswick
(U.S. Dollar) 9.875 2000 100,000 102,250
Republic of Argentina
(U.S. Dollar) 9.75 2027 340,000 290,700
(U.S. Dollar) 11.75 2007 250,000 220,000
Republic of Panama
(U.S. Dollar) 7.875 2002 250,000(c) 242,475
State of Israel
(U.S. Dollar) 6.375 2005 200,000 198,388
Tatneft Finance
(U.S. Dollar) 9.00 2002 250,000(c) 245,625
United Mexican States
(U.S. Dollar) 6.25 2019 250,000 195,625
(U.S. Dollar) 11.50 2026 250,000 267,500
Veritas Holdings
(U.S. Dollar) Sr Nts 9.625 2003 200,000(c) 214,000
Zhuhai Highway
(U.S. Dollar) 12.00 2008 250,000(c) 268,125
Total 12,139,926
Total bonds
(Cost: $64,466,627) $66,026,903
Preferred stocks & other (--%)
Issuer Shares Value(a)
Intermedia Communications
Warrants 100 $ 7,000
Time Warner
10.25% Pfd 6 6,990
Total preferred stocks & other
(Cost: $7,535) $13,990
Short-term securities (5.9%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
U.S. government agency (5.9%)
Federal Home Loan Mtge Corp Disc Nts
11-10-97 5.43% $ 500,000 $ 499,324
11-17-97 5.43 1,100,000 1,097,355
11-20-97 5.48 600,000 598,271
12-05-97 5.50 2,200,000 2,188,614
Total short-term securities
(Cost: $4,383,564) $ 4,383,564
Total investments in securities
(Cost: $68,857,726)(i) $70,424,457
See accompanying notes to investments in securities.
<PAGE>
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Foreign security values are stated in U.S. dollars. For debt securities,
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 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.
(e) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on Oct. 31, 1997.
(f) 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.
(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, 1997, is as follows:
Security Acquisition Cost
date
American United Life*
7.75% 2026 02-13-96 $200,000
*Represents a security sold under Rule 144A, which is exempt from registration
under the securities Act of 1933, as amended.
(h) U.S. Treasury inflation-protection securities are securities in which the
principal amount is adjusted for inflation and semi-annual interest payments
equal a fixed percentage of the inflation-adjusted principal amount.
(i) At Oct. 31, 1997, the cost of securities for federal income tax purposes was
approximately $68,817,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation....................................$2,136,000
Unrealized depreciation......................................(529,000)
--------
Net unrealized appreciation................................$1,607,000
<PAGE>
Investments in securities
IDS Life Series Fund, Inc.
Money Market Portfolio (Percentages represent value of
Oct. 31, 1997 (Unaudited) investments compared to net assets)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
U.S. government agency (6.3%)
Federal Home Loan Mtge Corp Disc Nts
12-01-97 5.48% $2,000,000 $1,990,917
Total U.S. government agency
(Cost: $1,990,917) $1,990,917
Certificate of deposit (5.1%)
Harris Trust
11-06-97 5.55 1,600,000 $1,600,000
Total certificate of deposit
(Cost: $1,600,000) $1,600,000
Commercial paper (85.7%)
Banks and savings & loans (17.0%)
ABN Amro North America Finance
12-16-97 5.60 700,000 695,126
BBV Finance (Delaware)
01-07-98 5.60 1,000,000 989,708
Commerzbank U.S. Finance
01-12-98 5.63 1,100,000 1,087,790
Kredietbank North America Finance
11-25-97 5.57 1,000,000 996,333
Natl Australia Funding (Delaware)
11-03-97 5.57 1,100,000 1,099,664
NBD Bank Canada
11-18-97 5.57 500,000 498,697
Total 5,367,318
Broker dealers (8.8%)
Goldman Sachs Group
11-14-97 5.56 700,000 698,602
Merrill Lynch
11-04-97 5.58 700,000 699,678
Morgan Stanley Group
11-14-97 5.56 1,400,000 1,397,214
Total 2,795,494
Commercial finance (10.1%)
CAFCO
11-01-97 5.53 700,000(b) 699,036
11-13-97 5.57 1,000,000(b) 998,160
Ciesco LP
11-24-97 5.56 1,500,000(b) 1,494,720
Total 3,191,916
Financial services (14.5%)
Associates Corp North America
01-05-98 5.66 900,000 890,900
Commercial Credit
11-25-97 5.52 1,500,000 1,494,510
Intl Lease Finance
11-14-97 5.52 1,500,000 1,497,026
Paccar Financial
11-04-97 5.53 700,000 699,679
Total 4,582,115
Food (3.1%)
Heinz (HJ)
12-18-97 5.61 1,000,000 992,728
Household products (5.7%)
Clorox
12-08-97 5.53 800,000 795,478
Colgate-Palmolive
11-17-97 5.50 1,000,000(b) 997,564
Total 1,793,042
Insurance (9.2%)
A.I. Credit
11-03-97 5.52 1,200,000 1,199,633
Lincoln Natl
12-08-97 5.55 700,000(b) 696,043
Pacific Mutual Life Insurance
11-07-97 5.51 1,000,000 999,085
Total 2,894,761
Media (4.7%)
Reed Elsevier
11-18-97 5.56 1,500,000(b) 1,496,090
Metals (5.0%)
BHP Finance
11-13-97 5.55 1,600,000 1,597,061
Multi-industry conglomerates (3.2%)
General Electric Capital
11-12-97 5.58 1,000,000 998,307
Utilities -- gas (1.6%)
Gateway Fuel
01-13-98 5.65 500,000 494,343
Miscellaneous (2.8%)
USAA Capital
11-01-97 5.50 900,000 898,768
Total commercial paper
(Cost: $27,101,943) $27,101,943
Letters of credit (4.1%)
Bank of America -
Minmetals
11-06-97 5.56% $500,000 $ 499,616
12-03-97 5.56 800,000 796,068
Total letters of credit
(Cost: $1,295,684) $ 1,295,684
Total investments in securities
(Cost: $31,988,544)(c) $31,988,544
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, 1997, this also represents the cost of securities for federal
income tax purposes.
<PAGE>
Investments in securities
IDS Life Series Fund, Inc.
Managed Portfolio (Percentages represent value of
Oct. 31, 1997 (Unaudited) investments compared to net assets)
Common stocks (63.5%)
Issuer Shares Value(a)
Aerospace & defense (1.2%)
General Motors Cl H 65,000 $ 4,111,250
United Technologies 25,600 1,792,000
Total 5,903,250
Automotive & related (1.6%)
Danaher 85,000 4,659,062
Hayes Wheels Intl 90,000(b) 3,037,500
Total 7,696,562
Banks and savings & loans (3.8%)
BankBoston 65,000 5,269,063
First Union 80,000 3,925,000
Mellon Bank 80,000 4,125,000
Washington Mutual 78,700 5,386,031
Total 18,705,094
Beverages & tobacco (0.9%)
Coca-Cola 28,600 1,615,900
Philip Morris 70,000 2,773,750
Total 4,389,650
Building materials & construction (1.4%)
Tyco Intl 176,600 6,666,650
Chemicals (3.2%)
Culligan Water Technologies 100,000(b) 4,262,500
Nalco Chemical 100,000 4,000,000
Praxair 54,400 2,369,800
USA Waste Services 135,000(b) 4,995,000
Total 15,627,300
Communications equipment & services (1.5%)
ADC Telecommunications 40,000(b) 1,325,000
Advanced Fibre
Communications 120,000(b) 3,487,500
Andrew Corp 120,000(b) 2,782,500
Total 7,595,000
Computers & office equipment (4.4%)
Adaptec 70,000(b) 3,390,625
Cisco Systems 35,000(b) 2,871,094
Compaq Computer 45,000 2,868,750
Electronic Arts 90,000(b) 3,048,750
First Data 90,000 2,615,625
Oracle 80,000(b) 2,862,500
Parametric Technology 85,000(b) 3,750,625
Total 21,407,969
Electronics (3.9%)
AMP 50,000 2,250,000
Analog Devices 110,000(b) 3,361,875
Harris 110,000 4,798,750
Intel 20,000 1,540,000
Kent Electronics 90,000(b) 3,144,375
Molex 100,000 3,750,000
Total 18,845,000
Energy (1.6%)
Newfield Exploration 155,700(b) 4,223,362
Noble Affiliates 90,000 3,695,625
Total 7,918,987
Energy equipment & services (1.8%)
Baker Hughes 110,000 5,053,125
Transocean Offshore 71,000 3,834,000
Total 8,887,125
Financial services (1.7%)
Providian Financial 110,000 4,070,000
Travelers Group 63,000 4,410,000
Total 8,480,000
Furniture & appliances (0.5%)
Maytag 80,000 2,670,000
Health care (6.5%)
ALZA 80,000(b) 2,085,000
American Home Products 40,000 2,965,000
Dura Pharmaceuticals 75,000(b) 3,628,125
Guidant 80,000 4,600,000
IDEXX Laboratories 80,000(b) 1,270,000
Johnson & Johnson 50,000 2,868,750
Medtronic 80,000 3,480,000
Merck & Co 19,000 1,695,750
Schering-Plough 51,200 2,870,400
Sofamor Danek Group 90,000(b) 6,198,750
Total 31,661,775
Health care services (2.2%)
Service Corp Intl 160,000 4,870,000
Tenet Healthcare 190,000(b) 5,806,875
Total 10,676,875
Household products (0.7%)
Estee Lauder Cl A 75,000 3,332,813
Industrial equipment & services (0.4%)
UCAR Intl 56,000(b) 2,100,000
Insurance (3.0%)
Frontier Insurance Group 120,000 4,042,500
Nationwide Financial
Services Cl A 70,000 2,130,625
Provident Cos 132,000 4,405,500
Risk Capital Holdings 54,400(b) 1,237,600
Travelers Property
Casualty Cl A 72,000 2,601,000
Total 14,417,225
Leisure time & entertainment (2.7%)
Brunswick 77,200 2,605,500
Carnival Cl A 75,000 3,637,500
Harley-Davidson 140,000 3,885,000
Regal Cinemas 125,000(b) 2,875,000
Total 13,003,000
Media (1.1%)
Chancelor Media 35,000(b) 1,920,625
McClatchy Newspapers 100,000 3,281,250
Total 5,201,875
Metals (0.8%)
Aluminum Co of America 55,500 4,051,500
Multi-industry conglomerates (4.0%)
AccuStaff 165,000(b) 4,712,812
Emerson Electric 65,000 3,408,438
Interim Services 140,000(b) 3,666,250
Westinghouse Electric 145,000 3,833,438
Xerox 50,000 3,965,625
Total 19,586,563
Paper & packaging (1.9%)
Bemis 70,000 2,668,750
Owens-Illinois 110,000(b) 3,795,000
Willamette Inds 80,000 2,645,000
Total 9,108,750
Restaurants & lodging (0.9%)
Hilton Hotels 150,000 4,621,875
Retail (5.0%)
American Stores 172,800 4,438,800
CVS 85,000 5,211,563
Dollar General 93,750 3,099,609
Kohl's 42,000(b) 2,819,250
Rite Aid 100,000 5,937,500
Safeway 50,000(b) 2,906,250
Total 24,412,972
Textiles & apparel (0.3%)
Unifi 38,500 1,479,844
Transportation (0.8%)
Wisconsin Central
Transportation 130,000(b) 4,046,250
Utilities -- gas (0.8%)
El Paso Natural Gas 65,000 3,895,937
Utilities -- telephone (1.5%)
Cincinnati Bell 190,000 5,130,000
WorldCom 62,000(b) 2,084,750
Total 7,214,750
Foreign (3.4%)
Danka Business Systems ADR 95,000 3,515,000
Ericsson (LM) Cl B ADR 80,000 3,540,000
Mutual Risk Management 136,666 3,544,774
Northern Telecom 40,000 3,587,500
Telecomunicacoes
Brasileiras-Telebras ADR 23,500 2,385,250
Total 16,572,524
Total common stocks
(Cost: $256,255,247) $310,177,115
See accompanying notes to investments in securities.
<PAGE>
<TABLE>
<CAPTION>
Bonds (28.3%)
Issuer Coupon Maturity Principal Value(a)
rate year amount
U.S. government obligations (7.8%)
<S> <C> <C> <C> <C>
U.S. Treasury 5.625% 2000 $10,100,000 $10,064,347
5.75 2003 6,500,000 6,474,065
5.875 1999 3,000,000 3,012,120
6.25 2023 9,100,000 9,122,113
7.00 2006 4,000,000 4,287,160
7.50 2016 1,000,000 1,142,830
7.50 2001 85,000 90,222
7.75 2000 3,700,000 3,857,990
Govt Trust Ctfs Israel 9.25 2001 230,403 242,454
Total 38,293,301
Mortgage-backed securities (5.0%)
Federal Home Loan Mtge Corp 8.00 2022-24 980,099 1,022,912
8.50 2026 844,259 884,142
Federal Natl Mtge Assn 5.50 2009 1,648,339 1,607,493
6.00 2024 1,687,591 1,637,115
6.50 2010-25 2,544,136 2,542,551
7.00 2003-26 5,013,111 5,040,859
7.50 2025-26 5,506,442 5,635,624
8.00 2022 201,857 210,376
8.50 2011-25 2,505,264 2,639,448
9.00 2024 134,526 144,791
Collateralized Mtge Obligation
Trust Series Z 6.50 2023 320,416(k) 293,814
7.00 2016 1,442,579(k) 1,456,139
Merrill Lynch Mtge Investors 6.96 2028 900,000 917,297
8.20 2021 301,046 303,210
Total 24,335,771
Aerospace & defense (0.8%)
Alliant Techsystems
Sr Sub Nts 11.75 2003 300,000(d) 330,750
BE Aerospace
Sr Sub Nts 9.875 2006 400,000 425,000
Newport News Shipbuilding
Sr Nts 8.625 2006 750,000 778,125
Northrup-Grumman 7.75 2016 500,000 540,470
Sequa 9.625 1999 500,000 517,500
Stellex Inds 9.50 2007 1,200,000(d) 1,200,000
Total 3,791,845
Airlines (0.1%)
Continental Airlines 6.94 2015 490,196 497,250
Banks and savings & loans (0.9%)
BankAmerica 7.70 2026 1,000,000(d) 1,016,230
Firstar Capital Trust 8.32 2026 500,000 536,950
Mellon Capital 7.72 2026 400,000 409,356
Morgan (JP)
Medium-term Nts 4.00 2012 500,000(h) 483,210
Norwest
Sr Nts 6.375 2002 800,000 807,048
Riggs Natl
Sub Nts 8.50 2006 100,000 104,250
Union Planters Trust 8.20 2026 1,000,000 1,032,690
Total 4,389,734
Building materials & construction (0.1%)
Pulte
Sr Nts 7.00 2003 500,000 501,910
Communications equipment & services (0.6%)
Geotek Communications
Cv 12.00 2001 205,000(j) 172,200
Intl Wireless Communications
Zero Coupon 15.16 2001 2,000,000(f) 1,185,000
Iridium LLC/Capital 13.00 2005 500,000 510,000
PhoneTel Technologies
Sr Nts 12.00 2006 1,000,000 1,027,500
Total 2,894,700
Electronics (0.2%)
Reliance Electric 6.80 2003 500,000 513,890
Thomas & Betts 6.50 2006 400,000 396,948
Total 910,838
Energy (0.1%)
Parker & Parsley Petroleum 8.25 2007 500,000 557,140
Energy equipment & services (0.1%)
Foster Wheeler 6.75 2005 750,000 758,295
Financial services (0.7%)
Avco Financial Services
Sr Nts 7.25 1999 250,000 255,820
Bat-Crave-800 6.68 2000 700,000(d) 705,159
Corporate Property Investors 7.18 2013 500,000(d) 501,900
First Union REIT 8.875 2003 300,000 311,250
KFW Intl Finance 8.00 2010 250,000 282,868
Property Trust America REIT 7.50 2014 750,000 759,030
Salomon Brothers 6.75 2006 500,000 506,515
Total 3,322,542
Food (0.4%)
ARA Group 8.50 2003 1,025,000 1,071,125
Twin Laboratories
Sr Sub Nts 10.25 2006 750,000(d) 802,500
Total 1,873,625
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Furniture & appliances (0.1%)
Syratech
<S> <C> <C> <C> <C>
Sr Nts 11.00 2007 500,000 500,000
Health care services (0.4%)
Owens & Minor
Sr Sub Nts 10.875 2006 400,000 442,000
Paracelsus Healthcare
Sr Sub Nts 10.00 2006 500,000 522,500
Tenet Healthcare
Sr Sub Nts 10.125 2005 1,000,000 1,100,000
Total 2,064,500
Industrial equipment & services (0.3%)
Case 7.25 2005 850,000 881,892
Specialty Equipment
Sr Sub Nts 11.375 2003 500,000 537,500
Total 1,419,392
Insurance (0.8%)
American United Life 7.75 2026 500,000(d,j) 503,960
Americo Life
Sr Sub Nts 9.25 2005 600,000 614,250
General American Life
Sub Cap Nts 7.625 2024 500,000(d) 485,865
New England Mutual
Credit Sensitive Nts 7.875 2024 250,000(d) 264,527
Principal Mutual 8.00 2044 250,000(d) 266,073
SAFECO Capital Trust I 8.072 2037 1,000,000(d) 1,038,060
SunAmerica
Medium-term Nts 7.34 2005 700,000 734,195
Total 3,906,930
Leisure time & entertainment (0.8%)
Coast Hotels & Casino
1st Mtge 13.00 2000 500,000(d) 560,000
Coleman Escrow
Zero Coupon Sr Disc Nts 11.75 2001 1,000,000(d,f) 660,000
Isle of Capri 13.00 2004 1,000,000(d) 1,015,000
United Artist Theatre 9.30 2015 730,598 748,863
Waterford Gaming 12.75 2003 700,000 773,500
Total 3,757,363
Media (1.3%)
Adams Outdoor Advertising
Sr Nts 10.75 2006 500,000 543,750
Adelphia Communications
Pay-in-kind 9.50 2004 212(i) 212
Cablevision Systems 9.25 2005 500,000 521,250
Cox Communications 7.625 2025 500,000 528,380
Marcus Cable
Zero Coupon 6.57 1999 1,000,000(g) 902,500
News American Holdings 7.50 2000 250,000 256,678
Time Warner Entertainment 8.375 2033 500,000 555,380
Turner Broadcasting System
Sr Nts 8.375 2013 250,000 274,052
United Intl Holdings
Zero Coupon Disc Nts 10.94 1999 1,355,000(f) 1,124,650
Universal Outdoor
Sr Sub Nts 9.75 2006 300,000 332,250
Universal Outdoor Holdings 9.75 2006 500,000 553,750
Viacom Intl
Sub Deb 7.00 2003 500,000 485,450
Sub Deb 8.00 2006 500,000 490,000
Total 6,568,302
Metals (0.4%)
EES Coke Battery 7.125 2002 706,875(d) 712,869
EnviroSource 9.75 2003 400,000 402,500
Sr Nts 9.75 2003 170,000 171,063
Ryerson Tull 8.50 2001 750,000 778,125
Total 2,064,557
Multi-industry conglomerates (0.2%)
Crane 7.25 1999 250,000 255,017
US Inds 7.25 2006 850,000 853,842
Total 1,108,859
Paper & packaging (0.1%)
Intl Paper 5.125 2012 250,000 213,688
Scotia Pacific Holdings 7.95 2015 249,323 260,645
Total 474,333
Retail (0.4%)
Maxim Group 9.25 2007 1,250,000(d) 1,231,250
Pep Boys-Manny, Moe & Jack 7.00 2005 500,000 514,730
Total 1,745,980
</TABLE>
<TABLE>
<CAPTION>
Textiles & apparel (0.1%)
<S> <C> <C> <C> <C>
Dominion Textiles 9.25 2006 300,000 311,250
Utilities -- electric (1.6%)
AES 8.50 2007 700,000(d) 694,750
Alabama Power 9.00 2024 300,000 329,205
Cleveland Electric
1st Mtge 9.50 2005 250,000 278,505
CMS Energy 7.625 2004 500,000 501,185
Connecticut Light & Power 7.75 2002 1,000,000 1,028,440
El Paso Electric
1st Mtge 8.90 2006 650,000 709,313
First Palo Verde Funding 10.15 2016 188,000 198,810
Jersey Central Power & Light 6.75 2025 1,000,000 950,710
Long Island Lighting 9.75 2021 300,000 318,738
Niagara Mohawk Power 7.75 2006 700,000 735,553
RGS Funding I & M
Sale Lease-Backed Obligation 9.82 2022 208,708 265,334
Salton Sea Cl C 7.84 2010 300,000(d) 320,553
Sithe Independence Funding 9.00 2013 150,000(d) 172,290
Texas Utilities Electric 8.175 2037 750,000 787,185
Texas-New Mexico Power
1st Mtge 9.25 2000 400,000 420,000
Total 7,710,571
Utilities -- gas (0.2%)
Enron Oil & Gas 6.70 2006 1,000,000 1,019,610
Utilities -- telephone (0.8%)
GTE 9.375 2000 400,000 433,848
Intermedia Communication 8.875 2007 500,000(d) 492,500
Zero Coupon 9.60 2002 1,500,000(g) 982,500
Mountain States Tel & Tel 5.50 2005 80,000 76,050
New England Tel & Tel 6.375 2008 70,000 69,910
New York Telephone 4.875 2006 130,000 118,547
U S WEST 7.20 2026 700,000 692,426
WorldCom 7.75 2007 1,000,000 1,062,980
Total 3,928,761
Miscellaneous (0.8%)
Emergent Group 10.75 2004 500,000(d) 505,000
Employee Solutions 10.00 2004 750,000(d) 750,000
La Petite Holdings
Sr Secured Nts 9.625 2001 1,000,000 1,045,000
Norcal Waste Systems
Sr Nts 13.25 1997 500,000(i) 573,125
Pierce Leahy
Sr Sub Nts 11.125 2006 406,000 456,750
Talton Holdings 11.00 2007 500,000(d) 531,250
Total 3,861,125
Foreign (3.2%)(c)
Banca Italy NY
(U.S. Dollar) 8.25 2007 500,000 551,750
Banco General
(U.S. Dollar) 7.70 2002 750,000(d) 742,860
Bank of China
(U.S. Dollar) 8.25 2014 300,000 302,364
CEI Citicorp Holdings
(Argentine Peso) 11.25 2007 250,000(d) 257,155
China Light & Power
(U.S. Dollar) 7.50 2006 500,000 512,190
Cia Latino Americana
(U.S. Dollar) 11.625 2004 300,000(d) 316,500
City of Moscow
(U.S. Dollar) Zero Coupon 10.96 1997 1,000,000(f) 982,900
Dao Heng Bank
(U.S. Dollar) 7.75 2007 750,000(d) 700,627
Fresh Del Monte
(U.S. Dollar) 10.00 2003 500,000 526,250
Govt of Algeria
(U.S. Dollar) 7.06 2006 250,000 200,000
Greater Bejing First
(U.S. Dollar) 9.25 2004 200,000(d) 191,654
(U.S. Dollar) 9.50 2007 300,000(d) 286,227
Grupo Televisa S.A.
(U.S. Dollar) Sr Nts 11.875 2006 650,000 703,625
Guangdong Enterprises
(U.S. Dollar) 8.875 2007 400,000(d) 381,664
Honam Oil Refinery
(U.S. Dollar) 7.125 2005 1,000,000(d) 867,000
Hutchinson Whampoa
(U.S. Dollar) 7.45 2017 250,000(d) 217,351
(U.S. Dollar) 7.50 2027 500,000(d) 447,005
Hyundai Semiconductor
(U.S. Dollar) 8.625 2007 500,000(d) 470,300
Imexsa Export Trust
(U.S. Dollar) 10.125 2003 500,000(d) 505,000
Mexican Cetes
(Mexican Peso) Zero Coupon 24.68 1998 4,258,000(f) 442,802
Netia Holdings
(U.S. Dollar) Zero Coupon 11.85 2001 650,000(d,g) 391,625
Newsquest Capital
(U.S. Dollar) 11.00 2006 300,000 333,000
Petronas
(U.S. Dollar) 7.75 2015 850,000(d) 778,855
Philippine Long Distance Telephone
(U.S. Dollar) 7.85 2007 500,000(d) 433,145
Repap New Brunswick
(U.S. Dollar) 9.875 2000 750,000 766,875
Republic of Agentina
(Agentine Peso) 8.75 2002 1,000,000(d) 760,000
Rogers Cablesystems
(U.S. Dollar) 7.08 2014 600,000 463,023
Rogers Cantel Mobile Communications
(U.S. Dollar) 9.375 2008 450,000 480,375
Russia Federal Loan
(Russian Ruble) 14.00 2000 3,158,829,226 497,768
Telekom Malaysia
(U.S. Dollar) 7.875 2025 425,000(d) 395,492
Veritas Holdings
(U.S. Dollar) 9.625 2003 800,000 856,000
Total 15,761,382
Total bonds
(Cost: $134,796,577) $138,329,866
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
Preferred stocks & other (0.4%)
Issuer Shares Value(a)
American Radio Systems
7.00% Cv Pfd 20,500(i) $1,196,687
Bar Technologies
Warrants 500 27,500
Clearnet Communications
Warrants 990 8,415
EchoStar Communications
Pay-in-kind 750(i) 806,250
12.125% Pfd
Total preferred stocks & other
(Cost: $1,832,127) $2,038,852
Short-term securities (7.1%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
U.S. government agencies (1.0%)
Federal Home Loan Mtge Corp Disc Nt
11-07-97 5.45% $ 500,000 $ 499,548
Federal Natl Mtge Assn Disc Nt
11-07-97 5.47 4,500,000 4,495,916
Total 4,995,464
Commercial paper (5.7%)
BBV Finance (Delaware)
11-06-97 5.52 4,600,000 4,596,486
Ciesco LP
12-03-97 5.55 6,300,000(e) 6,269,088
Kellogg
12-02-97 5.54 4,400,000 4,379,085
Metlife Funding
11-25-97 5.53 1,000,000 996,327
12-03-97 5.53 500,000 497,556
Paccar Financial
11-05-97 5.50 7,000,000 6,995,738
Pacific Gas & Electric
11-07-97 5.53 2,300,000 2,297,884
UBS Finance (Delaware)
11-03-97 5.67 1,800,000 1,799,433
Total 27,831,597
Letter of credit (0.4%)
Bank of America-
AES Barbers Point
11-26-97 5.53 1,900,000 1,892,730
Total short-term securities
(Cost: $34,719,791) $ 34,719,791
Total investments in securities
(Cost: $427,603,742)(l) $485,265,624
See accompanying notes to investments in securities.
<PAGE>
Investments in securities
IDS Life Series Fund, Inc.
Managed Portfolio
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 security values are stated in U.S. dollars.
(d) 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.
(e) Commercial paper sold within terms of 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.
(f) For zero coupon bonds, the interest rate disclosed represents the annualized
effective yield on the date of acquisition.
(g) For those zero coupon bonds that become coupon paying at a future date, the
interest rate disclosed represents the annualized yield from the date of
acquisition to intereset reset date disclosed.
(h) Interest rate varies either based on a predetermined schedule or to reflect
current market conditions; rate shown is the effective rate on Oct. 31, 1997.
(i) Pay-in-kind securities are securities in which the issuer has the options to
make interest or dividend payments in cash or in additional securities. These
securities issued as interest or dividends, usually have the same terms,
including maturity date, as the pay-in-kind securities.
(j) Identifies issues considered to be illiquid (see Note 1 to the financial
statements). Information concerning such security holdings at Oct. 31, 1997, is
as follows:
Security Acquisition Cost
date
American United Life*
7.75% 2026 02-13-96 500,000
Geotek Communications
12.00% Cv 2001 03-04-96 205,000
*Represents a security sold under Rule 144A, which is exempt from registration
under the Securities Act of 1933, as amended.
(k) This security is a collateralized mortgage obligation that pays no interest
of principal during its initial accrual period until payment of previous series
within the trust have been paid off. Interest is accrued at an effective yield;
similar to a zero coupon bond.
(l) At Oct. 31,1997, the cost of securities for federal income tax purposes was
approximately $427,408,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation.......................................$64,059,000
Unrealized depreciation........................................(6,201,000)
----------
Net unrealized appreciation...................................$57,858,000
<PAGE>
<TABLE>
<CAPTION>
IDS Life Series Fund, Inc.
Government Securities Portfolio (Percentages represent value of
Oct. 31, 1997 (Unaudited) investments compared to net assets)
Bonds (97.3%)
Issuer Coupon Maturity Principal Value(a)
rate year amount
U.S. government obligations (55.8%)
<S> <C> <C> <C> <C>
U.S. Treasury 5.125% 1998 $ 50,000 $ 49,950
6.25 2002-23 1,125,000 1,138,292
6.375 2000 150,000 152,388
6.50 2006 340,000 353,294
6.875 1999-2025 250,000 264,892
7.50 2016-24 1,855,000 2,145,544
7.75 2001 2,210,000 2,340,920
8.875 1999 1,100,000 1,143,714
Resolution Funding Corp 8.125 2019 400,000 485,064
Zero Coupon 7.18 2009 460,000(b) 224,600
Total 8,298,658
Mortgage backed securities (41.5%)
Federal Home Loan Mtge Corp 7.00 2012 246,075 249,599
Federal Natl Mtge Assn 6.50 2010 366,838 369,850
6.82 2005 925,000 968,678
7.00 2026 300,000(c) 303,562
7.00 2012-27 858,358 865,193
7.50 2027 394,973 403,686
8.00 2027 930,161 964,940
8.50 2011-25 1,006,848 1,061,520
9.00 2023 149,412 160,672
Govt Natl Mtge Assn 7.50 2025 435,853 447,325
8.00 2017-27 370,741 386,270
Total 6,181,295
Total bonds
(Cost: $14,080,220) $14,479,953
</TABLE>
<PAGE>
Short-term security (2.7%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
U.S. government agency
Federal Home Loan Mtge Corp Disc Nt
11-13-97 5.43% $400,000 $ 399,279
Total short-term security
(Cost: $399,279) $ 399,279
Total investments in securities
(Cost: $14,479,499)(d) $14,879,232
<PAGE>
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, 1997, the cost of securities purchased on a when-issued basis
was $303,000.
(d) At Oct. 31, 1997, the cost of securities for federal income tax purposes was
approximately $14,479,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation...........................................$403,000
Unrealized depreciation.............................................(3,000)
Net unrealized depreciation.......................................$400,000
<PAGE>
Investments in securities
IDS Life Series Fund, Inc.
International Equity Portfolio (Percentages represent value of
Oct. 31, 1997 (Unaudited) investments compared to net assets)
Common stocks (85.1%)
Issuer Shares Value(a)
Argentina (1.4%)
Energy (1.0%)
Perez Companc 250,000 $ 1,565,900
Utilities -- telephone (0.4%)
Telefonica de Argentina ADR 23,000 646,875
Australia (1.0%)
Transportation
Brambles Inds 88,000 1,691,362
Austria (0.6%)
Building materials & construction
VA Technologie 6,000 1,064,129
Brazil (3.0%)
Banks and savings & loans (0.6%)
Uniao de Bancos Brasileiros 35,000 953,750
Chemicals (1.0%)
SABESP 5,000,000 925,045
Trikem 250,000,000 675,000
Total 1,600,045
Communications equipment & services (0.5%)
Ericsson Telecomunicacoes28,000,000 825,272
Utilities -- telephone (0.9%)
Telecomunicacoes
Brasileiras-Telebras ADR 14,000(d) 1,421,000
Canada (4.7%)
Financial services (1.8%)
Bruncor 40,000 1,074,864
Intrawest 100,000 1,787,500
Total 2,862,364
Health care (0.8%)
Biovail Corp Intl 42,500(b) 1,227,188
Metals (0.1%)
Banro Resource 22,000 150,332
Multi-industry conglomerates (1.5%)
Bombardier Cl B 130,000 2,491,924
Utilities -- telephone (0.5%)
BCE 31,800 888,413
Chile (1.3%)
Multi-industry conglomerates (1.1%)
Madeco ADR 37,000 781,625
Quinenco ADR 68,100 995,963
Total 1,777,588
Retail (0.2%)
Distribucion y Servicio ADR 23,000 403,938
Finland (1.4%)
Communications equipment & services
Nokia Cl A 27,000 2,356,963
France (14.3%)
Automotive & related (2.3%)
Michelin Cl B 45,388 2,322,779
Renault 49,138 1,364,000
Total 3,686,779
Banks and savings & loans (1.2%)
Banque Nationale de Paris 43,800 1,931,685
Computers & office equipment (2.0%)
Dassault Systems 108,000 3,231,408
Energy (3.8%)
Societe Elf Acquitaine 30,000 3,704,600
Total Petroleum 22,000 2,435,144
Total 6,139,744
Health care (1.6%)
EDAP TMS ADR 365,000 2,555,000
Household products (3.4%)
Rhone-Poulenc 128,600 5,593,722
Germany (5.0%)
Automotive & related (2.2%)
Porsche 2,400 3,527,365
Electronics (1.3%)
Siemens 35,000 2,153,003
Industrial equipment & services (0.7%)
SGL Carbon 8,441 1,184,324
Textiles & apparel (0.8%)
Adidas 8,751 1,265,871
Hong Kong (1.7%)
Financial services (0.9%)
Cheung Kong Holdings 80,000 556,166
New World Development 100,703 354,281
Sun Hung Kai Properties 70,000 516,071
Total 1,426,518
Multi-industry conglomerates (0.8%)
Hutchison Whampoa 200,000 1,383,949
Ireland (0.8%)
Banks and savings & loans
Bank of Ireland 101,593 1,281,970
Italy (6.5%)
Banks and savings & loans (3.5%)
Credito Italiano 1,210,000 3,222,336
Istituto Bancario
San Paolo di Torino 333,215 2,524,564
Total 5,746,900
Energy (1.5%)
ENI 424,500 2,383,650
Utilities -- telephone (1.5%)
Telecom Italia 600,000 2,420,668
Japan (6.1%)
Automotive & related (0.7%)
Honda Motor 35,000 1,179,235
Computers & office equipment (1.4%)
Fujitsu 201,000 2,207,229
Electronics (3.2%)
Fujikura 170,000 1,166,756
Ibiden 65,000 1,081,486
Kyocera 19,000 1,089,056
Tokyo Electron 38,000 1,896,760
Total 5,234,058
Media (0.8%)
Sony 16,000 1,329,728
Mexico (2.9%)
Multi-industry conglomerates (0.8%)
Banco Nacional do Norte 1,000,000 1,374,776
Retail (1.1%)
Controladora Comercial
Mexicana GDR 90,000 1,788,750
Utilities -- telephone (1.0%)
Telinfo 30,000 1,606,285
Netherlands (5.6%)
Banks and savings & loans (0.7%)
ING Groep ADR 25,800 1,073,925
Computers & office equipment (0.8%)
Baan 18,382 1,298,297
Industrial equipment & services (2.2%)
Philips Electronics 45,300 3,536,881
Insurance (0.5%)
ING Groep 21,400 895,880
Retail (1.4%)
Vendex Intl 43,000 2,341,278
Norway (1.3%)
Communications equipment & services
Nera ASA 315,000 2,041,841
Peru (0.2%)
Utilities -- telephone
Telefonica del Peru ADR 18,000 355,500
Singapore (0.8%)
Banks and savings & loans (0.1%)
United Overseas Bank 32,000(b) 176,706
Electronics (0.7%)
GP Batteries Intl 380,000 1,109,489
Sweden (2.6%)
Communications equipment & services (1.4%)
Ericsson (LM) Cl B ADR 52,800 2,336,400
Multi-industry conglomerates (1.2%)
Ortivus Cl B 55,000(b) 1,906,260
Switzerland (2.0%)
Health care
Novartis 1,420 2,222,106
Roche Holding 109 957,075
Total 3,179,181
United Kingdom (8.3%)
Computers & office equipment (2.2%)
JBA Holdings 223,000 3,580,562
Electronics (0.9%)
Johnson Matthey 150,000 1,473,996
Energy (1.0%)
Shell Transport & Trading 223,000 1,579,934
Health care (1.5%)
Glaxo Wellcome 59,400 1,270,997
SmithKline Beecham 118,800 1,124,574
Total 2,395,571
Media (1.2%)
Pearson 156,000 1,981,594
Multi-industry conglomerates (1.5%)
Siebe 125,000 2,391,681
United States (13.6%)
Aerospace & defense (1.9%)
Rohr 100,000(b) 3,031,250
Banks and savings & loans (1.2%)
BankBoston 25,000 2,026,563
Communications equipment & services (0.7%)
Motorola 18,000 1,111,500
Computers & office equipment (2.2%)
Compaq Computer 30,000(b) 1,912,500
Oracle 45,000(b) 1,610,156
Total 3,522,656
Energy equipment & services (0.9%)
Camco Intl 20,000 1,445,000
Health care (0.9%)
Pfizer 20,500 1,450,375
Insurance (1.3%)
Prudential 200,000 2,131,342
Metals (2.4%)
EASCO 150,000 1,818,750
Stillwater Mining 100,000(b) 2,075,000
Total 3,893,750
Multi-industry conglomerates (0.2%)
General Electric 59,404 378,038
Retail (0.8%)
Wal-Mart Stores 39,000 1,369,875
Utilities -- telephone (1.1%)
AirTouch Communications 46,200(b) 1,784,475
Total common stocks
(Cost: $136,236,656) $138,359,460
Other (0.1%)
Issuer Shares Value(a)
Canada (--%)
Metals
Banro Resource
Warrants 11,000(c) $ --
Chile (--%)
Multi-industry conglomerates
Madeco
Rights 5,285(c) --
France (0.1%)
Miscellaneous
Rhone Poulenc
Warrants 31,490 99,382
Total other
(Cost: $--) $99,382
Short-term securities (17.8%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
U.S. government agency (3.7%)
Federal Home Loan Mtge Corp Disc Nts
11-13-97 5.33% $ 400,000 $ 399,279
12-01-97 5.48 1,900,000 1,891,371
11-13-97 5.47 3,700,000 3,693,266
Total 5,983,916
Commercial paper (14.1%)
BBV Finance
11-06-97 5.52 3,000,000 2,997,708
Colgate-Palmolive
11-07-97 5.56 7,100,000 7,093,456
Gannett
11-06-97 5.54 1,800,000 1,798,625
Metlife
11-25-97 5.53 1,500,000$ 1,494,490
Morgan Stanley
11-18-97 5.52 1,900,000 1,895,065
Pacific Life
11-07-97 5.51 7,600,000 7,593,046
Total 22,872,390
Total short-term securities
(Cost: $28,856,306) $ 28,856,306
Total investment in securities
(Cost: $165,092,962)(f) $167,315,148
See accompanying notes to investments in securities.
<PAGE>
<TABLE>
<CAPTION>
Investments in securities
IDS Life Series Fund, Inc.
International Equity Portfolio
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) Negligible market value.
(d) Investments representing 5% or more of the outstanding voting securities of
the issuer. Transactions with companies that are or were affiliates during the
six months ended Oct. 31, 1997 are as follows:
Beginning Purchase Sales Ending Dividend
Issuer cost cost cost cost Income
<S> <C> <C> <C> <C> <C>
Posadas de Mexico* $ 997,840 $345,820 $1,343,660 $-- $--
Telecomunicacoes Brasileiras -
Telebras ADR 1,592,232 -- 1,592,232 -- --
--------- -------- --------- ------- ------
Total $2,590,072 $345,820 $2,935,892 $-- $--
*Issuer was not an affiliate for the entire period.
(e) At Oct. 31,1997, the cost of securities for federal income tax purposes was
approximately $165,093,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation.......................................$12,435,000
Unrealized depreciation.......................................(10,213,000)
Net unrealized appreciation...................................$ 2,222,000
</TABLE>
<PAGE>
Directors and officers
Directors and officers of the fund
President and
interested director
Richard W. Kling
President, IDS Life.
Independent
directors
Edward Landes
Retired, former development consultant.
Carl N. Platou
President Emeritus and chief executive officer, Fairview Hospital and
Healthcare Serviecs.
Gordon H. Ritz
Director Mid America Publishing and Atrix International Inc. Former
president, Con Rad Broadcasting Corp.
Other officers
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. Stoltzmann
General counsel and assistant secretary
*Interested person as defined by the Investment Company Act of 1940.
<PAGE>
AMERICAN EXPRESS Financial Advisors
IDS Life Series Fund, Inc.
IDS Tower 10
Minneapolis, MN 55440-0010
