IDS
Life Series
Fund, Inc.
(icon of) the Planet Saturn
Offers six portfolios with separate goals and objectives to provide investment
flexibility for Variable Life Insurance Policies.
1998 SEMI ANNUAL REPORT
American Express Financial Advisors
Managed by IDS Life Insurance Company
<PAGE>
Contents
From the President 3
Equity Portfolio
From the Portfolio Manager 4
The 10 Largest Holdings 5
Income Portfolio
From the Portfolio Manager 6
The 10 Largest Holdings 7
Money Market Portfolio
From the Portfolio Manager 8
Managed Portfolio
From the Portfolio Managers 9
The 10 Largest Holdings 10
Government Securities Portfolio
From the Portfolio Manager 11
International Equity Portfolio
From the Portfolio Manager 12
The 10 Largest Holdings 13
All Portfolios
Financial Statements 14
Notes to Financial Statements 21
Investments in Securities 35
<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.
While you may allocate your policy's value among these Portfolios, please note
that all 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.
For a review of performance over the first half of the fiscal year (May through
October 1998), please consult the Portfolio Managers' letters that begin on the
next page.
Sincerely,
Richard W. Kling
(picture of Richard W. Kling
Richard W Kling
President
<PAGE>
To our policyowners
Equity Portfolio
From the Portfolio Manager
A poor period for stocks, especially small- and mid-capitalization issues,
resulted in a negative performance by Equity Portfolio during the first half of
the fiscal year. For the six months -- May through October 1998 -- the
Portfolio's value declined 21.48%.
The investment environment was still positive as the period began: inflation
remained low; long-term interest rates were down; and corporate profits
continued to be reasonably strong. Despite considerable volatility, the stock
market managed a moderate advance, reaching its peak in mid-July.
It was then that a second bout of the "Asian flu" (the financial crisis that ran
through Southeast Asia in the fall of 1997) hit, this time in Russia and Latin
America. Already fearful that profits of U.S. companies would decline as a
result of reduced exports to Asia, investors reacted to this latest outbreak
with wholesale stock-selling.
Technology and financials
hit hardest.
Much of the downturn was concentrated in technology and financial services
stocks, two groups that composed a substantial portion of the Portfolio. The six
months did end on a positive note, however, as the market, occasionally led by
small-and mid-cap stocks, regained some of the lost ground in September and
October.
To at least partially shield the Portfolio from the summer slump, I raised the
level of cash reserves and sold some small-cap stocks that appeared especially
vulnerable to the difficult conditions. Overall, the size of the Portfolio was
reduced from more than 130 stocks to just over 100 by period-end, an amount that
I think is more manageable and more likely to lead to better performance over
the long term. The "weightings" in the Portfolio stayed essentially the same,
however, the largest area of investment remained in technology, followed by
health care, financial services and retailing. I think those groups continue to
enjoy the best potential for future growth.
Late in the fall, I began putting some of the cash reserves back to work in
stocks, a trend that I expect will continue as compelling opportunities present
themselves. Small- and mid-cap stocks -- the core of this Portfolio -- continue
to offer excellent value compared with large-cap issues, and, over time, I think
they will be rewarded with appropriately higher prices.
Louis Giglio
(picture of) Louis Giglio
Louis Giglio
Portfolio Manager
<PAGE>
The 10 Largest Holdings
Equity Portfolio
Percent Value
(of net assets) (as of Oct. 31, 1998)
Network Associates 5.46% $42,499,999
HBO & Co 4.39 34,125,000
CDW Computer Centers 4.33 33,721,875
Watson Pharmaceuticals 3.22 25,031,249
Outdoor Systems 2.55 19,856,250
Sterling Commerce 2.04 15,862,499
SunGard Data Systems 1.95 15,187,500
Univision Communications Cl A 1.86 14,455,000
BMC Software 1.85 14,418,750
Medicis Pharmaceutical Cl A 1.45 11,278,125
For further detail about these holdings, please refer to the section entitled
"Investments in securities" herein.
(icon of) pie chart
The 10 holdings listed here make up 29.10% of net assets
<PAGE>
To our policyowners
Income Portfolio
From the Portfolio Manager
The Portfolio generated positive results over the first half of the fiscal year,
although its performance was tempered by weakness in several sectors of the bond
market. For the six months -- May through October 1998 -- the total return,
which includes price change and interest income, was 0.61%.
Inflation, usually the key influence on the bond market, remained remarkably low
during the period, while the economy continued to grow at a moderate pace.
Beyond that, the market gained further support from an influx of money coming
from investors who were seeking what they believed to be a safe haven amid
considerable turmoil in foreign financial markets. The buying resulting from
this "flight to quality" and the ongoing low inflation trend drove down
long-term interest rates during the six months, which in turn boosted bond
prices.
However, the boost was essentially confined to U.S. Treasury bonds, which
enjoyed substantial price appreciation as they attracted the great majority of
safety-conscious investors. Essentially ignored in the buying spree were the
other sectors, including high-yield corporate, mortgage-backed and
emerging-market bonds, which investors believed were vulnerable to ongoing
economic weakness abroad and the possibility of slower economic growth here at
home. This was especially true in August, when a currency devaluation in Russia
heightened the concern about a potential global recession.
Treasury bonds set the pace
Because the bulk of the Portfolio (close to 90% at times) was invested in the
corporate, mortgage and emerging-market sectors, its performance couldn't keep
pace with the powerful advance made by Treasury bonds. On the other hand, the
higher interest rates provided by the Portfolio's holdings basically made up for
the weak price performance and ultimately kept the Portfolio in the plus column
for the six months.
As the second half of the fiscal year begins, it appears that prospects have
improved for the non-Treasury sectors. In fact, during the final few weeks of
the period, such bonds staged a sharp rally. Therefore, unless there's a major
outside influence on the market in the months ahead, I plan to stay with
basically the same portfolio mix of corporate, mortgage and emerging-market
bonds, which I think offer the best potential for gain in the months ahead.
Lorraine R. Hart
(picture of) Lorraine R. Hart
Lorraine R. Hart
Portfolio Manager
<PAGE>
The 10 Largest Holdings
Income Portfolio
Percent Value
(of net assets) (as of Oct. 31, 1998)
California Infrastructure-Pacific Gas
& Electric 1.13% $1,007,360
6.15% 2002
California Infrastructure-Southern
California Edison 1.13 1,006,989
6.14% 2002
Morgan Stanley Capital .74 663,433
6.59% 2028
Delphes 2 .66 587,250
7.75% 2009
Carlisle Companies .62 550,819
7.25% 2007
Kroger .61 547,371
8.15% 2006
USA Waste Services .61 546,277
7.13% 2007
Columbia Gas System .61 542,181
7.32% 2010
Oryx Energy .60 540,184
8.13% 2005
Quebecor Printing Capital .60 536,263
7.25% 2007
Excludes U.S. Treasury and government agency holdings. For further detail about
these holdings, please refer to the section entitled "Investments in securities"
herein.
(icon of) pie chart
The 10 holdings listed here make up 7.31% of net assets
<PAGE>
To our policyowners
Money Market Portfolio
From the Portfolio Manager
Short-term interest rates dropped last fall, leading to a slight decline in the
Portfolio's yield during the first half of the fiscal year -- May through
October 1998. The net asset value remained at $1 per share over the period. (An
investment in the Portfolio is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Portfolio seeks to preserve the value of your investment at $1 per share, it is
possible to loose money by investing in the Portfolio.)
The economy continued to expand during the past six months, although at a
somewhat slower pace than at the beginning of 1998, and unemployment remained at
historically low levels. In the past, periods of extended economic growth and
low unemployment have usually been followed by an increase in the rates of
inflation. But, as has been the case in recent years, inflation stayed
remarkably well-behaved during the period.
Given that environment, the Federal Reserve Board, or Fed, maintained its
longtime position of leaving short-term interest rates unchanged through the
summer. By late September, though, the Fed evidently concluded that the economy
was becoming vulnerable to a downturn stemming from foreign financial turmoil
that began in Asia, then worked its way to Latin American and Russia. The result
was not one but two rate reductions by the Fed that brought short-term rates
down by half a percentage point by period-end.
Maturity lengthened
For the most part, I kept the average maturity of the securities in the
Portfolio in the 40- to 50-day range -- a neutral range. This strategy was based
on my belief that the difference in yield between shorter-term and longer-term
securities was too slight to warrant a maturity shift. But when the Fed first
reduced rates in late September, I began extending the maturity to take
advantage of the relatively higher yields still available. That brought the
average maturity up to about 55 days by the end of October. As always, the
Portfolio remained invested in high-quality securities, largely top-rated
commercial paper (short-term securities issued by banks and corporations),
complemented by U.S. government issues and bank letters of credit.
As we begin the second half of the fiscal year, I think it's likely that we'll
get at least one more rate reduction by the Fed in the months ahead. If that
proves true, the interest rates on the securities the Portfolio invests in will
decline as well, which in turn will result in a somewhat lower overall yield for
the Portfolio in the near term.
Terry Fettig
(picture of) Terry Fettig
Terry Fettig
Portfolio Manager
<PAGE>
To our policyowners
Managed Portfolio
From the Portfolio Managers
A sharp downturn in the U.S. stock market late last summer led to a negative
return for the Portfolio during the first half of the fiscal year -- May through
October 1998. For the six months, the Portfolio's value declined 7.45%
The period began well enough for stocks, as ongoing low inflation, solid
corporate profits and low long-term interest rates provided support for the
market. But in mid-July, with the market at its all-time high, the environment
began to change.
The chief culprit was the so-called "Asian flu," the financial crisis that first
hit Asia in the fall of 1997. By mid-summer, it had made its way to Russia and,
soon after, Latin America. Already concerned that profits of American companies
would decline as a result of reduced exports to Asia, investors reacted to this
latest outbreak with wholesale stock-selling. The market eventually leveled off
in September, then ended the period on an encouraging note by rallying strongly
in October.
Bonds benefit from
falling interest rates
The bond market had a much calmer and more productive six months, as a
continuation of the remarkably low inflation trend kept long-term interest rates
in a downward trend through September. Benefiting most from the interest-rate
decline were U.S. Treasury bonds, whose prices rose sharply before a run-up in
rates in October eroded some of the gain.
As for the Portfolio, we maintained a mix of about 65%-70% stocks and 30%-35%
bonds. The stock investments were concentrated for the most part in the
technology, health care, financial services, retailing and media sectors, while
the bonds were spread among Treasury and high-quality corporate issues.
Concurrent with a change in managers for the stock side of the Portfolio, in
September we began reducing its modest investments in small and mid-size stocks
and adding more large-capitalization securities, which will continue to be the
core of the Portfolio. In addition, we reduced the number of stock holdings from
88 to 65, which will allow greater concentration in the most-promising issues.
At the end of the period, the stock/bond mix was approximately 70/30, a ratio
that we'll probably maintain in the months ahead.
Doug Guffy
(picture of) Doug Guffy
Doug Guffy
Portfolio Manager
Scott Schroepfer
(picture of) Scott Schroepfer
Scott Schroepfer
Portfolio Manager
<PAGE>
The 10 Largest Holdings
Managed Portfolio
Percent Value
(of net assets) (as of Oct. 31, 1998)
Tyco Intl 2.69% $15,019,844
U.S. Treasury 2.64 14,762,163
6.63% 2007
General Electric 2.35 13,125,000
Microsoft 2.12 11,868,587
Cisco Systems 1.58 8,819,999
Pfizer 1.46 8,155,750
Sofamor Danek Group 1.45 8,130,000
MCI WorldCom 1.43 8,011,250
CVS 1.39 7,766,875
Norwest 1.38 7,697,812
For further detail about these holdings, please refer to the section entitled
"Investments in securities" herein.
(icon of) pie chart
The 10 holdings listed here make up 18.49% of net assets
<PAGE>
To our policyowners
Government Securities Portfolio
From the Portfolio Manager
Supported by declining interest rates, bonds, especially U.S. government issues,
rallied sharply during the past six months. The positive environment set the
stage for a strong performance by the Portfolio, which generated a 5.73% total
return for the first half of the fiscal year -- May through October 1998.
The most persistent positive factor during the period was a continuation of the
low rate of inflation the U.S. has enjoyed in recent years. When inflation
appears under control, investors are more willing to buy bonds because low
inflation usually results in stable, or even falling, interest rates. And a drop
in interest rates boosts the value of existing bonds, which is what happened
during the past six months.
Beyond that, in the face of ongoing turmoil in many foreign financial markets,
many investors moved their money into the perceived safe haven offered by U.S.
bonds, particularly those issued by the U.S. Treasury. This "flight to quality"
put further downward pressure on interest rates and, concurrently, upward
pressure on bond prices. In fact, over the past six months, investors were so
attracted to Treasury bonds that they largely shunned corporate and
mortgage-backed issues, which resulted in their weak price performance compared
with Treasuries.
A portfolio shift
To the Portfolio's benefit, I maintained a substantial exposure (more than 40%
at the peak) to Treasury bonds. In addition, I kept the Portfolio's duration
slightly long. (Duration is a function of the average maturity of the securities
in the Portfolio. The longer the duration, the more sensitive a portfolio's
value is to changes in interest rates.) Therefore, when rates came down, the
Portfolio's performance was enhanced.
As the period progressed, though, I gradually reduced the holdings among
Treasury bonds and increased the exposure to mortgage-backed bonds. In
particular, I emphasized low-coupon mortgage securities, which are less
susceptible to refinancing when interest rates fall. The shift stemmed from my
expectation that the rally in Treasuries would subside and give way to better
performance by mortgages, which proved true late in the period.
At this point (mid-November), little has changed on the investment horizon.
Inflation remains low, and the economy is showing signs of slowing down
somewhat. Those factors should preclude a meaningful rise in interest rates and,
in fact, could push rates a bit lower -- always a positive for bonds. I still
think mortgage-backed issues offer the best potential for gain in the months
ahead, which is why I'm maintaining the largest exposure to that sector.
Colin Lundgren
(picture of) Colin Lundgren
Colin Lundgren
Portfolio Manager
<PAGE>
To our policyowners
International Equity Portfolio
From the Portfolio Manager
A steep, late-summer downturn in financial markets worldwide pushed the
Portfolio into negative territory for the first half of the fiscal year. For the
six months -- May through October 1998 -- the loss was 6.09%.
The period began on a positive note as, for the first few months, strong stock
markets in Europe and the U.S. propelled the Portfolio to a healthy advance.
Both regions benefited from low inflation, falling long-term interest rates and,
in the case of Europe, a trend toward corporate restructuring.
By August, though, the environment became radically different. Russia, already
on shaky economic ground, was forced to devalue its currency, which in turn
spawned fear that much of Latin American might soon be forced to follow suit.
Then, just as the shock waves from that development had begun to subside a bit,
financial markets worldwide were confronted with the possibility that heavy
losses in speculative investments made by so-called hedge funds could ultimately
cause banks to greatly curtail corporate lending activities.
October rebound
The result of all this bad news was widespread stock-selling in all major
markets that didn't let up until October. By that time, the Portfolio had lost
close to 20% of its value. The period did end on an encouraging note, however,
as most major markets bounced back strongly in October, which allowed the
Portfolio to recoup some of the loss.
I kept most of the Portfolio invested in Europe during the six months, chiefly
in the United Kingdom, France, Italy and Germany, with the next-largest exposure
being to the U.S. market. The only change of note was to substantially raise the
level of cash reserves in response to the downturn in the markets. This helped
mitigate the negative effect on the Portfolio.
Looking toward the second half of the fiscal year, I expect that the worst may
be over for the smaller foreign markets, which would likely be a positive for
the markets in Europe and the U.S. I continue to find the best investment value
and potential for gain in Europe, and therefore I am maintaining the emphasis on
that region, complemented by a moderate amount of holdings in the U.S.
John O'Brien
(picture of) John O'Brien
John O'Brien
Portfolio Manager
<PAGE>
The 10 Largest Holdings
International Equity Portfolio
Percent Value
(of net assets) (as of Oct. 31, 1998)
United Kingdom Treasury (United Kingdom) 5.71% $12,970,071
7.00% 2002
Mannesmann (Germany) 4.55 10,338,191
Credito Italiano (Italy) 3.11 7,055,200
Novartis (Switzerland) 3.02 6,854,681
General Electric (United Kingdom) 2.76 6,273,431
Bayerische Vereinsbank (Germany) 2.64 5,986,768
Instituto Bancario San Paolo di Torino
(Italy) 2.58 5,857,000
Total Petroleum Cl B (France) 2.54 5,768,020
Orange (United Kingdom) 2.54 5,763,932
Banque Natl de Paris (France) 2.35 5,335,274
For further detail about these holdings, please refer to the section entitled
"Investments in securities" herein.
(icon of) pie chart
The 10 holdings listed here make up 31.80% of net assets
<PAGE>
<TABLE>
<CAPTION>
Financial Statements
Statements of assets and liabilities
IDS Life Series Fund, Inc.
Oct. 31, 1998 (Unaudited)
Equity Income Money
Portfolio Portfolio Market
Portfolio
Assets
Investments in securities, at value (Note 1)
(identified cost: $676,297,414; $89,212,396 and $36,853,234,
<S> <C> <C> <C>
respectively) $791,412,688 $88,495,740 $36,853,234
Cash in bank on demand deposit 112,936 471,537 220,941
Receivable for investment securities sold 9,263,770 -- --
Dividends and accrued interest receivable 114,075 1,548,425 --
Receivable for capital stock sold -- 402,629 133,144
------- -------
Total assets 800,903,469 90,918,331 37,207,319
----------- ---------- ----------
Liabilities
Dividends payable to shareholders (Note 1) -- 495,065 143,668
Payable for investment securities purchased 17,335,114 994,755 --
Accrued investment management services fee 402,863 50,941 14,814
Payable for capital stock redeemed 1,224,947 -- 122,692
Other accrued expenses 27,588 21,192 11,854
Option contracts written, at value
(premium received $2,671,455 for Equity Portfolio) (Note 6) 3,784,063 -- --
--------- --- ---
Total liabilities 22,774,575 1,561,953 293,028
---------- --------- -------
Net assets applicable to outstanding capital stock $778,128,894 $89,356,378 $36,914,291
============ =========== ===========
Represented by
Capital stock-- $.001 par value (Note 1) $ 34,656 $ 8,996 $ 36,918
Additional paid-in capital 791,103,570 90,213,336 36,878,361
Undistributed (excess of distributions over) net investment income (729,264) 20,954 --
Accumulated net realized gain (loss) (126,282,735) (170,252) (988)
Unrealized appreciation (depreciation) on investments and on
translation of assets and liabilities in foreign currencies 114,002,667 (716,656) --
----------- -------- ---
Total-- representing net assets applicable to outstanding capital stock $778,128,894 $89,356,378 $36,914,291
============ =========== ===========
Shares outstanding 34,655,865 8,996,320 36,917,767
---------- --------- ----------
Net asset value per share of outstanding capital stock $ 22.45 $ 9.93 $ 1.00
------------ ----------- -----------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statements of assets and liabilities (continued)
IDS Life Series Fund, Inc.
Oct. 31, 1998 (Unaudited)
Managed Government International
Portfolio Securities Equity
Portfolio Portfolio
Assets
Investments in securities, at value (Note 1)
<S> <C> <C> <C>
(identified cost: $478,466,398; $15,369,909 and $207,554,045,
respectively) $544,242,797 $16,107,701 $226,216,489
Cash in bank on demand deposit 65,471 354,885 131,461
Receivable for investment securities sold 17,342,020 -- 1,676,299
Dividends and accrued interest receivable 3,543,912 155,799 774,031
Unrealized appreciation on foreign currency contracts held,
at value (Notes 1 and 4) -- -- 3,013
Receivable for capital stock sold 2,584,326 59,127 107,892
--------- ------ -------
Total assets 567,778,526 16,677,512 228,909,185
----------- ---------- -----------
Liabilities
Dividends payable to shareholders (Note 1) 3,313,800 69,878 421,471
Payable for investment securities purchased 4,948,969 252,021 1,088,479
Unrealized depreciation on foreign currency contracts held,
at value (Notes 1 and 4) -- -- 2,143
Accrued investment management services fee 303,995 9,267 165,158
Payable for capital stock redeemed 612 39,907 --
Other accrued expenses 33,078 3,792 42,908
------ ----- ------
Total liabilities 8,600,454 374,865 1,720,159
--------- ------- ---------
Net assets applicable to outstanding capital stock $559,178,072 $16,302,647 $227,189,026
============ =========== ============
Represented by
Capital stock-- $.001 par value (Note 1) $ 32,940 $ 1,570 $ 13,732
Additional paid-in capital 512,839,719 15,517,076 209,682,689
Undistributed (excess of distributions over) net investment income (48,746) (14,715) (64,419)
Accumulated net realized gain (loss) (19,402,733) 60,924 (1,121,081)
Unrealized appreciation (depreciation) on investments and on
translation of assets and liabilities in foreign currencies 65,756,892 737,792 18,678,105
---------- ------- ----------
Total-- representing net assets applicable to outstanding capital stock $559,178,072 $16,302,647 $227,189,026
============ =========== ============
Shares outstanding 32,940,445 1,569,766 13,731,555
---------- --------- ----------
Net asset value per share of outstanding capital stock $ 16.98 $ 10.39 $ 16.55
------------ ----------- ------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Financial Statements
Statements of operations
IDS Life Series Fund, Inc.
Six months ended Oct. 31, 1998 (Unaudited)
Equity Income Money
Portfolio Portfolio Market
Portfolio
Investment income
Income:
<S> <C> <C> <C>
Dividends $ 1,212,297 $ 154 $ --
Interest 1,096,291 3,199,837 966,153
Less foreign taxes withheld (22,719) -- --
------- --- ---
Total income 2,285,869 3,199,991 966,153
--------- --------- -------
Expenses (Note 2):
Investment management and services fee 2,947,808 302,244 86,516
Custodian fees 56,120 1,260 12,119
Audit fees 7,750 4,000 3,500
Directors fees 2,884 168 143
Printing and postage -- 998 1,542
Other 571 90 --
--- -- ---
Total expenses 3,015,133 308,760 103,820
--------- ------- -------
Investment income (loss)-- net (729,264) 2,891,231 862,333
-------- --------- -------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on:
Security transactions (includes $5,307,404 realized loss on investments of
affiliated issuers for Equity Portfolio) (Note 3) (122,280,725) (155,924) (19)
Foreign currency transactions 323 -- --
--- --- ---
Net realized gain (loss) on investments (122,280,402) (155,924) (19)
Net change in unrealized appreciation (depreciation) on investments and
on translation of assets and liabilities in foreign currencies (82,318,340) (2,248,546) --
----------- ---------- ---
Net gain (loss) on investments and foreign currencies (204,598,742) (2,404,470) (19)
------------ ---------- ---
Net increase (decrease) in net assets resulting from operations $(205,328,006) $ 486,761 $862,314
============= ========== ========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statements of operations (continued)
IDS Life Series Fund, Inc.
Six months ended Oct. 31, 1998 (Unaudited)
Managed Government International
Portfolio Securities Equity
Portfolio Portfolio
Investment income
Income:
<S> <C> <C> <C>
Dividends $ 1,449,873 $ -- $ 2,189,095
Interest 7,598,521 453,085 968,687
Less foreign taxes withheld (1,350) -- (269,045)
------ --------
Total income 9,047,044 453,085 2,888,737
--------- ------- ---------
Expenses (Note 2):
Investment management and services fee 1,981,877 52,258 1,074,198
Custodian fees 50,857 4,865 104,711
Audit fees 7,250 4,000 6,000
Directors fees 1,744 148 642
Printing and postage 6,443 1,002 1,721
Other -- -- --
--- --- ---
Total expenses 2,048,171 62,273 1,187,272
Less expenses voluntarily reimbursed by IDS Life -- (2,550) --
--- ------ ---
Total expenses-- net 2,048,171 59,723 1,187,272
--------- ------ ---------
Investment income (loss)-- net 6,998,873 393,362 1,701,465
--------- ------- ---------
Realized and unrealized gain (loss) -- net
Net realized gain (loss) on:
Security transactons (Note 3) (19,965,835) 60,924 (1,093,397)
Financial futures contracts 1,258,688 -- --
Foreign currency transactions (49,512) -- 31,655
Options contracts written 7,920 -- --
----- --- ---
Net realized gain (loss) on investments (18,748,739) 60,924 (1,061,742)
Net change in unrealized appreciation (depreciation) on investments and on
translation of assets and liabilities in foreign currencies (32,098,373) 364,166 (14,950,514)
----------- ------- -----------
Net gain (loss) on investments and foreign currencies (50,847,112) 425,090 (16,012,256)
----------- ------- -----------
Net increase (decrease) in net assets resulting from operations $(43,848,239) $818,452 $(14,310,791)
============ ======== ============
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
Oct. 31, 1998 April 30, 1998 Oct. 31, 1998 April 30, 1998
Six months ended Year ended Six months ended Year ended
(Unaudited) (Unaudited)
Operations and distributions
<S> <C> <C> <C> <C>
Investment income (loss)-- net $ (729,264) $ (2,253,021) $ 2,891,231 $ 4,972,299
Net realized gain (loss) on investments (122,280,402) 137,928,346 (155,924) 575,895
Net change in unrealized appreciation
(depreciation) on investments and on translation
of assets and liabilities in foreign currencies (82,318,340) 153,419,212 (2,248,546) 1,370,727
----------- ----------- ---------- ---------
Net increase (decrease) in net assets resulting from operations (205,328,006) 289,094,537 486,761 6,918,921
------------ ----------- ------- ---------
Distributions to shareholders from:
Net investment income -- (20,999) (2,891,149) (4,972,299)
Net realized gain (139,606,605) (25,086,345) (589,189) (287,088)
------------ ----------- -------- --------
Total distributions (139,606,605) (25,107,344) (3,480,338) (5,259,387)
------------ ----------- ---------- ----------
Capital share transactions (Note 5)
Proceeds from sales 56,214,601 108,453,258 8,577,922 14,789,401
Reinvested distributions at net asset value 139,606,605 25,107,344 3,480,338 5,259,387
Payments for redemptions (6,574,627) (15,248,865) (2,481,586) (5,679,799)
---------- ----------- ---------- ----------
Increase (decrease) in net assets from capital share transactions 189,246,579 118,311,737 9,576,674 14,368,989
----------- ----------- --------- ----------
Total increase (decrease) in net assets (155,688,032) 382,298,930 6,583,097 16,028,523
Net assets at beginning of period 933,816,926 551,517,996 82,773,281 66,744,758
----------- ----------- ---------- ----------
Net assets at end of period $778,128,894 $933,816,926 $89,356,378 $82,773,281
============ ============ =========== ===========
Undistributed (excess of distributions over) net investment income $ (729,264) $ -- $ 20,954 $ 20,872
------------ ---------- ----------- -----------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statements of changes in net assets (continued)
IDS Life Series Fund, Inc.
Money Market Managed
Portfolio Portfolio
Oct. 31, 1998 April 30, 1998 Oct. 31, 1998 April 30, 1998
Six months ended Year ended Six months ended Year ended
(Unaudited) (Unaudited)
Operations and distributions
<S> <C> <C> <C> <C>
Investment income (loss)-- net $ 862,333 $ 1,575,961 $ 6,998,873 $ 12,977,787
Net realized gain (loss) on investments (19) (159) (18,748,739) 35,844,608
Net change in unrealized appreciation
(depreciation) on investments and on translation
of assets and liabilities in foreign currencies -- -- (32,098,373) 66,941,764
----------- ----------
Net increase (decrease) in net assets resulting from operations 862,314 1,575,802 (43,848,239) 115,764,159
------- --------- ----------- -----------
Distributions to shareholders from:
Net investment income (862,333) (1,575,961) (6,900,615) (12,977,741)
Excess distributions of net investment income -- -- (48,746) --
Net realized gain -- -- (36,482,550) (31,257,376)
----------- -----------
Total distributions (862,333) (1,575,961) (43,431,911) (44,235,117)
-------- ---------- ----------- -----------
Capital share transactions (Note 5)
Proceeds from sales 11,511,706 19,622,034 28,868,693 64,443,186
Reinvested distributions at net asset value 862,333 1,575,961 43,431,911 44,235,117
Payments for redemptions (9,833,080) (15,370,198) (6,539,742) (10,246,876)
---------- ----------- ---------- -----------
Increase (decrease) in net assets from capital share transactions 2,540,959 5,827,797 65,760,862 98,431,427
--------- --------- ---------- ----------
Total increase (decrease) in net assets 2,540,940 5,827,638 (21,519,288) 169,960,469
Net assets at beginning of period 34,373,351 28,545,713 580,697,360 410,736,891
---------- ---------- ----------- -----------
Net assets at end of period $36,914,291 $34,373,351 $559,178,072 $580,697,360
=========== =========== ============ ============
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
Oct. 31, 1998 April 30, 1998 Oct. 31, 1998 April 30, 1998
Six months ended Year ended Six months ended Year ended
(Unaudited) (Unaudited)
Operations and distributions
<S> <C> <C> <C> <C>
Investment income (loss)-- net $ 393,362 $ 785,608 $ 1,701,465 $ 833,466
Net realized gain (loss) on investments 60,924 134,337 (1,061,742) 8,299,556
Net change in unrealized appreciation
(depreciation) on investments and on translation
of assets and liabilities in foreign currencies 364,166 445,383 (14,950,514) 33,874,515
------- ------- ----------- ----------
Net increase (decrease) in net assets resulting from operations 818,452 1,365,328 (14,310,791) 43,007,537
------- --------- ----------- ----------
Distributions to shareholders from:
Net investment income (378,647) (785,584) (1,668,703) (800,705)
Excess distributions of net investment income (14,715) -- (64,419) (548,730)
Net realized gain (130,692) (141,363) (7,835,052) (3,978,926)
-------- -------- ---------- ----------
Total distributions (524,054) (926,947) (9,568,174) (5,328,361)
-------- -------- ---------- ----------
Capital share transactions (Note 5)
Proceeds from sales 2,572,649 4,424,154 25,567,377 51,860,011
Reinvested distributions at net asset value 524,054 926,947 9,568,174 5,328,361
Payments for redemptions (1,695,028) (4,560,150) (1,640,277) (3,168,693)
---------- ---------- ---------- ----------
Increase (decrease) in net assets from capital share transactions 1,401,675 790,951 33,495,274 54,019,679
--------- ------- ---------- ----------
Total increase (decrease) in net assets 1,696,073 1,229,332 9,616,309 91,698,855
Net assets at beginning of period 14,606,574 13,377,242 217,572,717 125,873,862
---------- ---------- ----------- -----------
Net assets at end of period $16,302,647 $14,606,574 $227,189,026 $217,572,717
=========== =========== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
IDS Life Series Fund, Inc.
(Unaudited as to Oct. 31, 1998)
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. Each Portfolio has 10
billion authorized shares of capital stock. It has six portfolios whose primary
investments are as follows (please see the prospectus for more details):
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 Fund's significant accounting policies are summarized as follows:
Use of estimates
Preparing financial statements that conform to generally accepted accounting
principles requires management to make estimates (e.g., on assets and
liabilities) that could differ from actual results.
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 that reflects fair value
as quoted by dealers 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
To produce incremental earnings, protect gains, and facilitate buying and
selling of securities for investments, the Portfolios, except Money Market
Portfolio, may buy and sell put or call options and write covered call options
on Portfolio securities as well as write cash-secured put options. The risk in
writing a call option is that the Portfolios give up the opportunity for 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 being unable to enter into a closing
transaction if a liquid secondary market does not exist. The Portfolios also may
write over-the-counter options where completing the obligation depends 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 when the option transaction expires or
closes. 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
To gain exposure to or protect itself from market changes, 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 of 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,
if any, may arise from sales of foreign currency, closed forward contracts,
exchange gains or losses realized between the trade date and settlement date on
securities transactions, and other translation gains or losses on dividends,
interest income and foreign withholding taxes.
The Portfolios, except Money Market Portfolio, 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 its contract
obligations.
Illiquid securities
As of Oct. 31, 1998, investments in securities for Income Portfolio and Managed
Portfolio included issues that are illiquid which the Portfolios currently limit
to 10% of net assets, at market value, at the time of purchase. The aggregate
value of such securities at Oct. 31, 1998 was $217,122 and $542,804,
representing 0.2% and 0.1% of net assets for Income Portfolio and Managed
Portfolio, respectively. According to board guidelines, certain unregistered
securities are determined to be liquid and are not included within the 10%
limitation specified above.
Federal income taxes
The Fund's policy is to comply with all requirements of the Internal Revenue
Code that apply to regulated investment companies and to distribute all of its
taxable income to shareholders, no provision for income taxes is thus required.
Each Portfolio is treated as a separate entity for federal income tax purposes.
Net investment income (loss) and net realized gains (losses) may 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
As of Oct. 31, 1998, dividends declared for each Portfolio payable Nov. 2, 1998
are as follows:
Income $.056
Money Market $.004
Managed $.101
Government Securities $.045
International Equity $.031
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 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, the Fund 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 nonadvisory
expenses, 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, 1998, cost of purchases and proceeds from
sales of securities aggregated, respectively, $126,237,203 and $123,495,985 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 $454,971,926 $499,533,331
Income 14,313,180 7,797,774
Managed 298,554,702 298,628,261
Government Securities 9,462,386 8,107,817
International Equity 64,200,687 72,786,064
Realized gains and losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with IDS Life were $8,028 and
$1,314 for Equity Portfolio and Managed Portfolio, respectively, for the six
months ended Oct. 31, 1998.
<PAGE>
<TABLE>
<CAPTION>
4
FOREIGN CURRENCY
CONTRACTS
As of Oct. 31, 1998, International Equity Portfolio had entered into foreign
currency exchange contracts that obligate it 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
<S> <C> <C> <C> <C>
Nov. 2, 1998 531,114 4,129,409 $ -- $2,143
U.S. Dollar Swedish Krona
Nov. 3, 1998 559,508 4,347,377 2,616 --
U.S. Dollar Swedish Krona
Nov. 30, 1998 3,045,075 548,418 397 --
French Franc U.S. Dollar
Total $3,013 $2,143
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
5
CAPITAL SHARE
TRANSACTIONS
Transactions in shares of capital stock for each Portfolio for the periods
indicated are as follows:
Six months ended Oct. 31, 1998
Money Government International
Equity Income Market Managed Securities Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C> <C>
Sold 2,108,937 845,053 11,512,828 1,592,782 248,493 1,448,167
Issued for reinvested distributions 5,304,488 343,627 862,416 2,400,986 51,024 508,367
Redeemed (254,081) (245,131) (9,834,057) (366,779) (165,170) (92,719)
Net increase (decrease) 7,159,344 943,549 2,541,187 3,626,989 134,347 1,863,815
Year ended April 30, 1998
Money Government International
Equity Income Market Managed Securities Equity
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sold 3,690,818 1,441,650 19,623,972 3,499,409 440,153 3,199,923
Issued for reinvested distributions 878,375 512,508 1,576,114 2,439,015 91,894 310,769
Redeemed (519,416) (554,245) (15,371,758) (559,693) (451,521) (190,260)
Net increase (decrease) 4,049,777 1,399,913 5,828,328 5,378,731 80,526 3,320,432
</TABLE>
<PAGE>
Notes to Financial Statements
IDS Life Series Fund, Inc.
6
OPTIONS
CONTRACTS
WRITTEN
The number of contracts and premium amounts associated with options contracts
written by Equity Portfolio is as follows:
Six months ended Oct. 31, 1998
Puts Calls
Contracts Premium Contracts Premium
Balance April 30, 1998 -- $ -- -- $ --
Opened 800 $772,174 2,250 1,899,281
Balance Oct. 31, 1998 800 $772,174 2,250 $1,899,281
See "Summary of significant accounting policies."
The number of contracts and premium amounts associated with options
contracts written by Managed Portfolio is as follows:
Six months ended Oct. 31, 1998
Calls
Contracts Premium
Balance April 30, 1998 -- $ --
Opened 16 7,920
Closed (16) (7,920)
Balance Oct. 31, 1998 -- $ --
See "Summary of significant accounting policies."
<PAGE>
<TABLE>
<CAPTION>
Equity Portfolio
7.
FINANCIAL
HIGHLIGHTS
The tables below show certain important financial information for evaluating
each Portfolio's results.
Fiscal period ended April 30,
Per share income and capital changes(a)
1998b 1998 1997 1996 1995 1994
Net asset value,
<S> <C> <C> <C> <C> <C> <C>
beginning of period $33.96 $23.52 $29.34 $20.05 $18.10 $16.87
Income from investment operations:
Net investment income (loss) (.02) (.08) .05 .03 .10 .06
Net gains (losses) (both (6.56) 11.55 (1.34) 9.30 2.40 3.26
realized and unrealized)
Total from investment
operations (6.58) 11.47 (1.29) 9.33 2.50 3.32
Less distributions:
Dividends from net -- -- (.05) (.03) (.10) (.06)
investment income
Distributions from (4.93) (1.03) (4.48) (.01) (.45) (2.03)
realized gains
Total distributions (4.93) (1.03) (4.53) (.04) (.55) (2.09)
Net asset value, $22.45 $33.96 $23.52 $29.34 $20.05 $18.10
end of period
Ratios/supplemental data
1998b 1998 1997 1996 1995 1994
Net assets, end of period
(in thousands) $778,129 $933,817 $551,518 $448,412 $241,032 $151,860
Ratio of expenses to .72%c .72% .76% .76% .77% .75%
average daily net assets
Ratio of net investment income (.17%)c (.29%) .21% .15% .56% .33% .
(loss)to average daily net assets
Portfolio turnover rate 57% 147% 231% 184% 144% 109%
(excluding short-term
securities)
Total return(d) (21.48%) 49.52% (3.66%) 46.63% 13.87% 19.72%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Six months ended October 31, 1998 (Unaudited).
c Adjusted to an annual basis.
d Total return does not reflect the expenses that apply to the subaccounts or
the policies.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Income Portfolio
Financial Highlights (continued)
Fiscal period ended April 30,
Per share income and capital changes(a)
1998b 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $10.28 $10.03 $9.93 $9.64 $9.71 $10.19
beginning of period
Income from investment operations:
Net investment income (loss) .34 .69 .68 .68 .69 .71
Net gains (losses) (both (.28) .29 .10 .29 (.07) (.48)
realized and unrealized)
Total from investment
operations .06 .98 .78 .97 .62 .23
Less distributions:
Dividends from net (.34) (.69) (.68) (.68) (.69) (.71)
investment income
Distributions from (.07) (.04) -- -- -- --
realized gains
Total distributions (.41) (.73) (.68) (.68) (.69) (.71)
Net asset value,
end of period $9.93 $10.28 $10.03 $9.93 $9.64 $ 9.71
Ratios/supplemental data
1998b 1998 1997 1996 1995 1994
Net assets, end of period $89,356 $82,773 $66,745 $54,976 $37,823 $33,770
(in thousands)
Ratio of expenses to .72%c .74% .80% .80% .80% .80%
average daily net assets
Ratio of net investment income 6.70%c 6.69% 6.73% 6.72% 7.23% 6.83%
(loss) to average daily net assets
Portfolio turnover rate 9% 94% 106% 36% 55% 60%
(excluding short-term securities)
Total return(d) .61% 9.97% 8.08% 10.03% 6.67% 2.12%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Six months ended Oct. 31, 1998 (Unaudited).
c Adjusted to an annual basis.
d 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 changes(a)
1998b 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
beginning of period
Income from investment operations:
Net investment income (loss) .02 .05 .05 .05 .04 .03
Less distributions:
Dividends from net (.02) (.05) (.05) (.05) (.04) (.03)
investment income
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
end of period
Ratios/supplemental data
1998(b) 1998 1997 1996 1995 1994
Net assets, end of period $36,914 $34,373 $28,546 $14,318 $9,885 $9,557
(in thousands)
Ratio of expenses to .60%(d) .60% .60% .60% .60% .60%
average daily net assets(c)
Ratio of net investment income 4.98%(d) 5.04% 4.81% 5.04% 4.45% 2.61%
(loss) to average daily net assets
Total return(e) 2.53% 5.16% 4.91% 5.13% 4.50% 2.61%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Six months ended Oct. 31, 1998 (Unaudited).
c 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 0.64%,
0.73%, 0.77% and 0.71% for the years ended April 30, 1997, 1996, 1995 and
1994, respectively.
d Adjusted to an annual basis.
e Total return does not reflect the expenses that apply to the subaccounts
or the policies.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Managed Portfolio
Financial Highlights (continued)
Fiscal period ended April 30,
Per share income and capital changes(a)
1998b 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $19.81 $17.16 $16.49 $14.11 $13.85 $13.84
beginning of period
Income from investment operation:
Net investment income (loss) .22 .47 .57 .57 .44 .42
Net gains (losses) (both (1.61) 3.92 1.37 2.51 .30 1.40
realized and unrealized)
Total from investment (1.39) 4.39 1.94 3.08 .74 1.82
operations
Less distributions:
Dividends from net (.22) (.47) (.57) (.57) (.44) (.42)
investment income
Distributions from (1.22) (1.27) (.70) (.13) (.04) (1.39)
realized gains
Total distributions (1.44) (1.74) (1.27) (.70) (.48) (1.81)
Net asset value, $16.98 $19.81 $17.16 $16.49 $14.11 $13.85
end of period
Ratios/supplemental data
1998b 1998 1997 1996 1995 1994
Net assets, end of period $559,178 $580,697 $410,737 $316,732 $219,986 $160,706
(in thousands)
Ratio of expenses to .72%c .72% .75% .78% .78% .77%
average daily net assets
Ratio of net investment income 2.47%c 2.60% 3.46% 3.73% 3.27% 2.83%
(loss) to average daily net assets
Portfolio turnover rate 58% 112% 100% 83% 143% 106%
(excluding short-term
securities)
Total return(d) (7.45%) 26.70% 12.45% 22.28% 5.47% 13.30%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Six months ended October 31, 1998 (Unaudited).
c Adjusted to an annual basis.
d Total return does not reflect the expenses that apply to the subaccounts or
the policies.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Government Securities Portfolio
Financial Highlights (continued)
Fiscal period ended April 30,
Per share income and capital changes(a)
1998b 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $10.18 $9.87 $9.98 $9.85 $9.88 $10.54
beginning of period
Income from investment operations:
Net investment income (loss) .27 .56 .59 .61 .59 .60
Net gains (losses) (both .30 .42 (.03) .13 (.03) (.56)
realized and unrealized)
Total from investment operations .57 .98 .56 .74 .56 .04
Less distributions:
Dividends from net (.26) (.56) (.59) (.61) (.59) (.60)
investment income
Excess distributions from net (.01) -- -- -- -- --
investment income
Distributions from (.09) (.11) (.08) -- -- (.10)
realized gains
Total distributions (.36) (.67) (.67) (.61) (.59) (.70)
Net asset value, $10.39 $10.18 $9.87 $9.98 $9.85 $ 9.88
end of period
Ratios/supplemental data
1998b 1998 1997 1996 1995 1994
Net assets, end of period $16,303 $14,607 $13,377 $12,464 $11,440 $11,185
(in thousands)
Ratio of expenses to .80%d .80% .80% .80% .80% .80%
average daily net assets(c)
Ratio of net investment income 5.27%d 5.57% 5.88% 5.98% 6.02% 5.59%
(loss) to average daily net assets
Portfolio turnover rate 56% 82% 62% 38% 12% 32%
(excluding short-term
securities)
Total return(e) 5.73% 10.11% 5.83% 7.45% 5.98% 0.16%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Six months ended October 31, 1998 (Unaudited).
c 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 0.83% for the
six months ended Oct. 31, 1998, 0.89% , 0.85%, 0.88%, 0.87% and 0.85% for the
years ended April 30, 1998, 1997, 1996, 1995 and 1994, respectively.
d Adjusted to an annual basis.
e Total return does not reflect the expenses that apply to the subaccounts or
the policies.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
International Equity Portfolio
Financial Highlights (continued)
Fiscal period ended April 30,
Per share income and capital changes(a)
1998(c) 1998 1997 1996 1995b
<S> <C> <C> <C> <C> <C>
Net asset value, $18.33 $14.73 16.35 $10.29 $10.00
beginning of period
Income from investment operations:
Net investment income (loss) .13 .08 .14 .11 .15
Net gains (losses) (both (1.16) 4.06 (.24) 6.08 .29
realized and unrealized)
Total from investment operations (1.03) 4.14 (.10) 6.19 .44
Less distributions:
Dividends from net (.13) (.07) (.15) (.13) (.15)
investment income
Excess distributions from -- (.05) -- -- --
net investment income
Distributions from (.62) (.42) (1.37) -- --
realized gains
Total distributions (.75) (.54) (1.52) (.13) (.15)
Net asset value,
end of period $16.55 $18.33 $14.73 $16.35 $10.29
Ratios/supplemental data
1998(c) 1998 1997 1996 1995b
Net assets, end of period $227,189 $217,573 $125,874 $52,061 $8,497
(in thousands)
Ratio of expenses to 1.05%(d) 1.05% 1.05% 1.05% 1.00%(d)
average daily net assets(e)
Ratio of net investment income 1.50%(d) .49% .73% .92% 5.66%(d)
(loss) to average daily net assets
Portfolio turnover rate 32% 172% 151% 172% 40%
(excluding short-term
securities)
Total return(f) (6.09%) 28.41% (.54%) 60.47% 4.39%
a For a share outstanding throughout the period. Rounded to the nearest cent.
b Commencement of operations. Period from Oct. 28, 1994 to April 30, 1995.
c Six months ended Oct. 31, 1998 (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%,
1.22%, 1.32% and 1.76% for the years ended April 30, 1998, 1997, 1996 and
1995, respectively.
f Total return does not reflect the expenses that apply to the subaccounts or
the policies.
</TABLE>
<PAGE>
Investments in securities
IDS Life Series Fund, Inc.
Equity Portfolio
Oct. 31, 1998 (Unaudited)
(Percentages represent value of investments compared to net assets)
Common stocks (86.8%)
Issuer Shares Value(a)
Airlines (1.0%)
Atlantic Coast Airlines
Holdings 100,000(b) $2,400,000
SkyWest 225,000 5,737,500
Total 8,137,500
Automotive & related (1.2%)
Dura Automotive
Systems Cl A 400,000(b) 9,550,000
Banks and savings & loans (1.7%)
Creditrust 125,000(b) 2,148,438
Towne Services 400,000(b) 2,800,000
Washington Mutual 225,000 8,423,437
Total 13,371,875
Commercial finance (0.6%)
Finova Group 100,000 4,875,000
Communications equipment & services (2.9%)
Ascend Communications 150,000(b) 7,237,500
Com 21,180,000(b) 2,700,000
Tekelec 200,000(b) 3,587,500
Tellabs 100,000(b) 5,500,000
World Access 150,000(b) 3,206,250
Total 22,231,250
Computers & office equipment (28.0%)
American Management
Systems 150,000(b) 4,603,125
BEA Systems 500,000(b) 9,796,875
BindView Development 200,000(b) 3,600,000
BMC Software 300,000(b,f)14,418,750
Cisco Systems 157,500(b) 9,922,500
Citrix Systems 50,000(b) 3,543,750
Compuware 125,000(b) 6,773,438
CSG Systems Intl 200,000(b) 10,900,000
Documentum 100,000(b) 3,400,000
DST Systems 150,000(b) 7,500,000
EMC 50,000(b) 3,218,750
Extended Systems 300,000(b) 2,062,500
FORE Systems 300,000(b) 4,687,500
Fundtech 300,000(b) 4,087,500
JDA Software Group 400,000(b) 3,800,000
Legato Systems 225,000(b) 8,803,125
MAXIMUS 170,000(b) 4,930,000
Maxtor 700,000(b) 7,437,500
Metzler Group 200,000(b) 8,400,000
Network Associates 1,000,000(b) 42,499,999
PeopleSoft 125,000(b) 2,648,438
Pervasive Software 295,000(b) 2,839,375
Profit Recovery Group Intl 250,000(b) 7,671,875
Software.net1 50,000(b) 1,387,500
Sterling Commerce 450,000(b) 15,862,499
SunGard Data Systems 450,000(b) 15,187,500
TeleTech Holdings 100,000(b) 987,500
Whittman-Hart 350,000(b) 6,956,250
Total 217,926,249
Electronics (3.6%)
Amkor Technology 550,000(b) $2,681,250
Etec Systems 173,100(b) 5,863,762
Novellus Systems 75,000(b) 2,910,938
Sawtek 150,000(b) 3,028,125
Teradyne 100,000(b) 3,250,000
Uniphase 200,000(b) 9,900,000
Total 27,634,075
Financial services (1.4%)
Capital One Financial 50,000 5,087,500
Heller Financial 100,000(b) 2,400,000
Knight/Trimark Group Cl A 400,000(b) 3,250,000
Total 10,737,500
Food (1.2%)
Aurora Foods 500,000(b) 8,750,000
Horizon Organic Holding 50,000(b) 631,250
Total 9,381,250
Health care (11.0%)
ALZA 100,000(b) 4,787,500
Arterial Vascular Engineering100,000(b) 3,075,000
Boron, LePore & Associates 250,000(b) 6,750,000
Guidant 80,000(f) 6,120,000
Maxxim Medical 150,000(b) 3,787,500
Medicis Pharmaceutical Cl A 225,000(b) 11,278,125
Pharmaceutical Product
Development 200,000(b) 5,400,000
Pharmacyclics 250,000(b) 4,031,250
Shire Pharmaceuticals
Group ADR 150,000(b,c) 3,262,500
Sofamor Danek Group 40,000(b) 4,065,000
Spiros Development 145,000(b) 1,558,750
Synaptic Pharmaceutical 200,000(b) 3,112,500
VISX 66,700(b) 3,343,338
Watson Pharmaceuticals 450,000(b) 25,031,249
Total 85,602,712
Health care services (6.9%)
HBO & Co 1,300,000 34,125,000
Health Management
Associates Cl A 200,000(b) 3,562,500
Quintiles Transnational 125,000(b) 5,656,250
Sunrise Assisted Living 235,400(b) 10,136,913
Total 53,480,663
Industrial equipment & services (1.0%)
Iron Mountain 150,000(b) 4,584,375
Superior Services 150,000(b) 3,150,000
Total 7,734,375
Insurance (1.6%)
ACE 200,000(c) $6,775,000
Nationwide Financial
Services Cl A 67,900 2,817,850
UNUM 70,000 3,110,625
Total 12,703,475
Leisure time & entertainment (0.3%)
Activision 200,000(b) 2,112,500
Media (5.4%)
Chancellor Media 200,000(b) 7,675,000
Outdoor Systems 900,000(b) 19,856,250
Univision Communications
Cl A 490,000(b) 14,455,000
Total 41,986,250
Miscellaneous (1.3%)
Cumulus Media Cl A 263,300(b) 2,764,650
Medical Manager 200,000(b) 4,975,000
Software AG Systems 175,000(b) 2,625,000
Total 10,364,650
Multi-industry conglomerates (4.0%)
Giga Information Group 200,000(b) 675,000
Interim Services 275,000(b) 5,843,750
Modis Professional Services 300,000(b) 5,287,500
Personnel Group of America 350,000(b) 5,425,000
SM&A 330,000(b) 4,640,625
Tyco Intl 150,000(c) 9,290,625
Total 31,162,500
Restaurants & lodging (0.9%)
Papa John's Intl 100,000(b) 3,796,875
Silverleaf Resorts 250,000(b) 2,953,125
Total 6,750,000
Retail (8.4%)
CDW Computer Centers 450,000(b,f)33,721,875
CVS 200,000 9,137,500
Kohl's 85,000(b,f) 4,064,063
MSC Industrial Direct Cl A 400,000(b) 8,500,000
Natrol 175,000(b) 2,012,500
Rite Aid 162,000 6,429,375
Transportation Components 500,000(b) 1,875,000
Total 65,740,313
Textiles & apparel (0.3%)
Wolverine World Wide 200,000 2,612,500
Transportation (1.6%)
C.H. Robinson Worldwide 250,000 5,546,875
Covenant Transport 350,000(b) 5,293,750
Dynamex 270,000(b) 1,873,125
Total 12,713,750
Utilities -- telephone (2.4%)
Cincinnati Bell 200,000 5,187,500
COLT Telecom Group ADR 200,000(b,c)10,275,000
Qwest Communications Intl 75,000(b) 2,934,375
Total 18,396,875
Total common stocks
(Cost: $560,086,351) $675,205,262
Short-term securities (14.9%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
U.S. government agencies (6.5%)
Federal Home Loan Bank Disc Nt
11-12-98 5.10% $7,500,000 $7,487,300
Federal Home Loan Mtge Corp Disc Nts
11-13-98 5.15 11,100,000 11,079,477
11-25-98 4.79 6,500,000 6,478,469
11-30-98 5.17 15,000,000 14,932,237
12-18-98 4.79 11,000,000 10,930,187
Total 50,907,670
Commercial paper (8.4%)
Alcoa Aluminum Co of America
11-17-98 5.30 3,100,000 3,092,285
Associates Corp North America
11-02-98 5.71 2,700,000 2,699,144
BellSouth Capital Funding
11-03-98 5.28 5,900,000(d) 5,897,414
BMW US Capital
12-07-98 5.09 800,000 795,831
CAFCO
11-06-98 5.53 1,700,000(d) 1,698,445
Glaxo Wellcome
11-25-98 5.09 6,400,000(d) 6,377,467
GTE Funding
11-06-98 5.31 4,300,000 4,296,209
Merrill Lynch
12-07-98 5.12 5,200,000 5,172,797
Natl Rural Utilities
12-14-98 5.10 2,100,000 2,086,987
Paccar Financial
11-04-98 5.27 3,000,000 2,998,250
Pfizer
11-24-98 5.09 8,200,000(d) 8,172,284
Pioneer Hi-Bred
11-09-98 5.11 5,000,000 4,993,625
12-04-98 5.12 4,500,000 4,478,325
12-07-98 5.10 5,800,000 5,769,776
Reed Elsevier
11-04-98 5.27 800,000(d) 799,533
12-04-98 5.07 6,000,000(d) 5,971,384
Total 65,299,756
Total short-term securities
(Cost: $116,211,063) $116,207,426
Total investments in securities
(Cost: $676,297,414)(g) $791,412,688
See accompanying notes to investments in securities.
<PAGE>
<TABLE>
<CAPTION>
Investments in Securities
IDS Life Series Fund, Inc.
Equity 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. For debt securities,
principal amounts are denominated in the currency indicated. As of Oct. 31,
1998, the value of foreign securities represented 3.80% of net assets.
(d) 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.
(e) 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, 1998 are as follows:
Issuer Beginning PurchaseSales Ending Dividend Value(a)
cost cost costcost income
<S> <C> <C> <C> <C> <C> <C>
Rock of Ages* $5,604,628 $-- $5,604,628 $-- $-- $--
Tier Technologies* -- 6,027,188 6,027,188 -- -- --
Total $5,604,628 $6,027,188 $11,631,816 $-- $-- $--
*Issuer was not an affiliate for the entire period ended Oct. 31, 1998.
(f) At Oct. 31, 1998, securities valued at $16,214,063 were held to cover open
call options written as follows:
Issuer Shares Exercise Expiration Value(a)
price date
CDW Computer Centers 130,000 $60 April 1999 $2,632,500
CDW Computer Centers 50,000 75 Dec. 1998 325,000
Guidant 20,000 70 Dec. 1998 185,000
Kohl's 25,000 45 Dec. 1998 126,563
$3,269,063
At Oct. 31, 1998, cash or short-term securities were designated to cover open
put options written as follows:
Issuer Shares Exercise Expiration Value(a)
price date
BMC Software 80,000 $40 Jan. 1999 $515,000
(g) At Oct. 31, 1998, the cost of securities for federal income tax purposes was
approximately $676,297,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation..........................$156,517,000
Unrealized depreciation...........................(41,401,000)
Net unrealized appreciation......................$115,116,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Investments in Securities
IDS Life Series Fund, Inc.
Income Portfolio
Oct. 31, 1998 (Unaudited)
(Percentages represent value of investments compared to net assets)
Bonds (94.6%)
Issuer Coupon Principal Value(a)
rate amount
Government obligations (5.7%)
City of Moscow
(U.S. Dollar)
<S> <C> <C> <C>
05-31-00 9.50% $250,000(b,c) $63,750
Govt of Russia
(Russian Ruble)
12-15-20 6.63 200,000(b) 15,250
(U.S. Dollar)
07-24-05 8.75 150,000(b,c) 28,500
06-24-28 12.75 75,000(b,c) 17,578
12-29-49 6.63 3,508(b) 351
People's Republic of China
(U.S. Dollar)
07-03-01 7.38 100,000(b) 100,370
Republic of Argentina
(Argentine Peso)
02-12-07 11.75 250,000(b) 197,656
Republic of Korea
(U.S. Dollar)
04-15-08 8.88 200,000(b) 181,906
Republic of Panama
(U.S. Dollar)
02-13-02 7.88 250,000(b,c) 240,625
Republic of Philippines
(U.S. Dollar)
04-15-08 8.88 500,000(b) 452,499
United Mexican States
(U.S. Dollar)
05-15-26 11.50 250,000(b) 257,344
(U.S. Dollar) Series A
12-31-19 6.25 250,000(b) 188,125
U.S. Treasury
11-15-27 6.13 3,000,000 3,384,012
Total 5,127,966
Mortgage-backed securities (22.0%)
Federal Home Loan Mtge Corp
06-01-09 5.50 655,514 653,423
08-01-11 6.50 1,792,681 1,819,679
03-01-13 5.50 955,134 943,867
06-15-20 8.00 159,092 164,175
Collateralized Mtge Obligation
04-15-22 8.50 1,000,000 1,087,170
Federal Natl Mtge Assn
03-15-01 5.63 600,000 614,628
04-15-03 5.75 2,000,000 2,074,622
02-15-08 5.75 500,000 518,888
06-01-10 6.50 905,508 921,128
02-01-11 6.00 1,580,180 1,589,961
09-01-13 6.00 1,971,375 1,978,922
07-01-26 7.00 1,739,696 1,777,673
12-01-27 6.00 2,472,723 2,443,811
12-01-27 6.50 2,141,954 2,158,164
Collateralized Mtge Obligation
01-25-21 8.00 40,398 40,326
Merrill Lynch Mtge Investors
06-15-21 7.86 145,594(c) 142,045
Morgan Stanley Capital
Collateralized Mtge Obligation
11-15-28 6.59% $658,495 $663,433
Total 19,591,915
Aerospace & defense (0.7%)
BE Aerospace
Sr Sub Nts Series B
02-01-06 9.88 100,000 104,125
Goodrich (BF)
07-01-01 9.63 150,000 166,420
Newport News Shipbuilding
Sr Nts
12-01-06 8.63 75,000 78,469
Northrop-Grumman
03-01-06 7.00 250,000 262,502
Total 611,516
Airlines (0.5%)
Continental Airlines
Series 1996A
04-15-15 6.94 381,646 415,761
Automotive & related (0.5%)
Arvin Capital
Company Guaranty
02-01-27 9.50 250,000 291,701
MSX Intl
Company Guaranty
01-15-08 11.38 125,000 125,313
Total 417,014
Banks and savings & loans (8.5%)
Banca Commercial Italian
(U.S. Dollar)
07-15-07 8.25 300,000(b) 344,523
Banco General
(U.S. Dollar)
08-01-02 7.70 350,000(b,c) 335,525
Capital One Bank
05-15-08 6.70 500,000 477,661
Comerica Bank
Sub Nts
10-01-08 6.00 500,000 499,508
Corp Andina de Fomento
(U.S. Dollar)
02-01-03 7.10 300,000(b) 302,567
Crestar Capital
Company Guaranty
12-15-26 8.16 350,000 374,282
Dao Heng Bank
(U.S. Dollar) Sub Nts
01-24-07 7.75 500,000(b,c) 381,023
Fleet Financial Group
Sub Deb
01-15-28 6.88 300,000 299,770
Fleet/Norstar Financial Group
Sub Nts
12-01-01 9.00 200,000 222,287
Greenpoint Capital
Company Guaranty
06-01-27 9.10 200,000 228,044
Hubco Capital
Company Guaranty Series B
02-01-27 8.98 500,000 532,160
MBNA American Bank
Sub Nts
03-15-08 6.75 500,000 497,892
Mellon Capital
Company Guaranty Series A
12-01-26 7.72 500,000 497,680
Norwest
Sr Medium-term Nts Series G
09-15-02 6.38 400,000 415,805
Provident Companies
03-15-38 7.41 500,000 496,453
Union Planters Bank
Sub Nts
03-15-18 6.50 500,000 501,338
US Bancorp
Sub Nts
09-15-07 6.88 400,000 424,881
Wachovia
Sub Nts
08-04-08 6.25 500,000 518,028
Washington Mutual Capital
Company Guaranty
06-01-27 8.38 200,000 214,030
Total 7,563,457
Building materials & construction (1.6%)
Carlisle Companies
Sr Nts
01-15-07 7.25 500,000 550,819
Pulte
Sr Nts
12-15-03 7.00 300,000 318,566
Southdown
Sr Sub Nts Series B
03-01-06 10.00 50,000 53,250
Tyco Intl Group
(U.S. Dollar) Company Guaranty
06-15-03 6.25 500,000(b) 514,448
Total 1,437,083
Chemicals (1.2%)
IMC Global
10-15-01 6.63 500,000 497,560
USA Waste Services
Sr Nts
10-01-07 7.13 500,000 546,277
Total 1,043,837
Commercial finance (0.1%)
Netia Holdings
(U.S. Dollar) Company Guaranty Series B
11-01-07 10.25 100,000(b) 73,500
Communications equipment & services (2.3%)
Facilicom Intl
Sr Nts Series B
01-15-08 10.50 250,000 192,813
Iridium LLC/Capital
Company Guaranty Series C
07-15-05 11.25 40,000 30,400
IXC Communications
Sr Sub Nts
04-15-08 9.00 250,000 244,375
Jordan Telecommunications Products
Sr Nts Series B
08-01-07 9.88 250,000 230,000
KMC Telecom Holdings
Zero Coupon Sr Disc Nts
02-15-03 12.78 700,000(e) 322,000
Level 3 Communications
Sr Nts
05-01-08 9.13 225,000 212,625
MJD Communications
05-01-08 9.50 100,000(c) 99,750
NTL
Zero Coupon Sr Nts
04-01-03 9.78 190,000(c,e) 103,550
PhoneTel Technologies
Sr Nts
12-15-06 12.00 125,000(g) 28,750
US West Capital Funding
Company Guaranty
07-15-28 6.88 500,000 519,072
Versatel Telecom
(U.S. Dollar) Sr Nts
05-15-08 13.25 100,000(b,c) 92,000
Total 2,075,335
Computers & office equipment (0.1%)
PSINet
Sr Nts Series B
02-15-05 10.00 50,000 49,000
Electronics (0.9%)
Hyundai Semiconductor
(U.S. Dollar) Sr Nts
05-15-07 8.63 500,000(b,c) 371,917
Thomas & Betts
01-15-06 6.50 400,000 417,914
Total 789,831
Energy (3.5%)
Forcenergy
Sr Sub Nts
11-01-06 9.50 50,000 36,313
Gulf Canada Resources
07-01-05 9.63 500,000 495,000
Honam Oil Refinery
(U.S. Dollar)
10-15-05 7.13 250,000(b,c) 136,950
Lodestar Holdings
(U.S. Dollar) Sr Nts
05-15-05 11.50 250,000(b,c) 197,500
Oryx Energy
10-15-05 8.13 500,000 540,184
R & B Falcon
04-15-08 6.95 500,000 495,887
Roil
(U.S. Dollar)
12-05-02 12.78 228,500(b,c) 57,125
Tatneft Finance
(U.S. Dollar) Company Guaranty
10-29-02 9.00 250,000(b,c) 40,000
Trizec Hahn
Sr Nts
09-15-04 9.50 100,000 98,500
USX
03-01-08 6.85 500,000 510,631
Woodside Petroleum
(U.S. Dollar)
04-15-08 6.60 500,000(b,c) 499,628
Total 3,107,718
Energy equipment & services (1.7%)
DI Inds
Sr Nts
07-01-07 8.88 150,000 106,500
Foster Wheeler
11-15-05 6.75 300,000 303,665
Global Marine
09-01-07 7.13 500,000 527,884
Pioneer Natural Resource
01-15-08 6.50 500,000 462,757
Pool Energy Services
Company Guaranty Series B
04-01-08 8.63 100,000 95,500
Total 1,496,306
Financial services (5.7%)
Airplanes GPA Cl D
(U.S. Dollar) Series 1
03-15-19 10.88 100,000(b) 112,957
American General Finance
11-01-03 5.75 500,000 498,135
Arcadia Financial
Sr Nts
03-15-07 11.50 130,000 84,500
Associates
Sr Nts
11-01-03 5.75 350,000 354,076
Avco Financial Services
Sr Nts
07-15-99 7.25 300,000 304,868
Barclays North America Capital
05-15-21 9.75 300,000 346,360
BB & T
06-30-25 6.38 500,000 512,592
Capital One Financial
08-01-08 7.13 500,000 512,796
Countrywide Funding
Company Guaranty Medium-term Nts
Series A
03-01-99 8.42 300,000 303,289
Household Finance
Medium-term Nts Series E
06-17-08 6.40 500,000 497,829
Providian Master Trust
Series 1997-4 Cl A
06-15-07 6.25 500,000 519,329
Providian Natl Bank
Sr Nts
03-15-03 6.70 500,000 508,809
Wilmington Trust
05-01-08 6.63 500,000 512,909
Total 5,068,449
Food (0.3%)
Ameriserve Food Distributions
Company Guaranty
07-15-07 10.13 100,000 82,125
Chiquita Brands Intl
Sr Nts
01-15-04 9.63 100,000 102,250
Daya Guna
(U.S. Dollar) Company Guaranty
06-01-07 10.00 100,000(b,c) 59,500
Total 243,875
Furniture & appliances (0.1%)
Interface
Sr Sub Nts Series B
11-15-05 9.50 100,000 106,000
Health care (0.8%)
Alaris Medical Systems
Company Guaranty
12-01-06 9.75 150,000 145,875
Watson Pharmaceuticals
Sr Nts
05-15-08 7.13 500,000 525,916
Total 671,791
Health care services (2.8%)
Cardinal Health
07-15-08 6.25 500,000 512,358
Columbia/HCA Healthcare
06-15-05 6.91 100,000 96,403
HEALTHSOUTH
06-15-08 7.00 500,000 472,968
Magellan Health Services
Sr Sub Nts
02-15-08 9.00 125,000(c) 106,563
Manor Care
Sr Nts
06-15-06 7.50 250,000 270,093
Oxford Health Plans
Sr Nts
05-15-05 11.00 50,000(c) 39,063
Paracelsus Healthcare
Sr Sub Nts
08-15-06 10.00 350,000 313,250
Service Corp Intl
03-15-20 6.30 500,000 521,188
Tenet Healthcare
Sr Sub Nts
12-01-08 8.13 200,000(c) 198,156
Total 2,530,042
Household products (0.3%)
Revlon Consumer Products
Sr Nts
02-01-06 8.13 250,000 243,125
Industrial equipment & services (2.9%)
AGCO
Sr Sub Nts
03-15-06 8.50 175,000 157,938
ARAMARK Services
Company Guaranty
12-01-06 7.10 500,000 527,243
Case
08-01-05 7.25 400,000 437,763
Ingersoll-Rand
Sr Nts
02-15-01 6.26 500,000 516,039
Jorgensen (Earle M)
Sr Nts
04-01-05 9.50 275,000 236,500
Motor & Gears
Sr Nts Series D
11-15-06 10.75 250,000 246,875
Terex
Company Guaranty
04-01-08 8.88 250,000 227,500
Wesco Distribution
Company Guaranty Series B
06-01-08 9.13 250,000 245,000
Total 2,594,858
Insurance (2.3%)
American General Institute Capital
Company Guaranty Series A
12-01-45 7.57 250,000(c) 253,547
American United Life Insurance
03-30-26 7.75 200,000(c,f) 217,122
Americo Life
Sr Sub Nts
06-01-05 9.25 100,000 99,375
Conseco Financing Trust
Company Guaranty
11-15-26 8.70 300,000 309,302
Orion Capital
Company Guaranty
04-15-28 7.70 250,000 257,125
SAFECO Capital
Company Guaranty
07-15-37 8.07 500,000 509,637
Veritas Holdings
(U.S. Dollar) Sr Nts
12-15-03 9.63 127,000(b) 131,763
Zurich Capital
(U.S. Dollar) Company Guaranty
06-01-37 8.38 250,000(b,c) 279,071
Total 2,056,942
Leisure time & entertainment (2.1%)
Hammons (JQ) Hotels
1st Mtge
02-15-04 8.88 250,000 236,563
Mirage Resorts
02-01-08 6.75 500,000 496,029
Riviera Holdings
Company Guaranty
08-15-04 10.00 250,000 213,125
SFX Entertainment
Company Guaranty Series B
02-01-08 9.13 50,000 46,625
Time Warner
02-01-24 7.57 350,000 375,163
Trump Holdings & Funding
Sr Nts
06-15-05 15.50 250,000 246,563
United Artists Theatres
Series 1995A
07-01-15 9.30 95,481 87,485
Venetian Casino/LV Sands
Company Guaranty
11-15-04 12.25 150,000 133,875
Total 1,835,428
Media (3.8%)
CBS
Sr Nts
05-20-05 7.15 500,000 519,504
Comcast
Sr Sub Deb
10-15-06 9.13 500,000 516,250
Globo Communicacoes Participacoes
(U.S. Dollar) Sr Nts
12-05-08 10.63 275,000(b,c) 149,558
Grupo Televisa
(U.S. Dollar) Sr Nts
05-15-06 11.88 100,000(b) 97,750
Lamar Advertising
Company Guaranty
12-01-06 9.63 275,000 290,469
Lenfest Communications
Sr Nts
11-01-05 8.38 250,000 257,813
MDC Communications
(U.S. Dollar) Sr Sub Nts
12-01-06 10.50 100,000(b) 101,500
Quebecor Printing Capital
Company Guaranty
01-15-07 7.25 500,000 536,263
TCI Communications
08-01-15 8.75 350,000 429,983
Time Warner Entertainment
Sr Nts
07-15-33 8.38 250,000 297,183
Viacom Intl
09-15-01 10.25 100,000 108,500
Sub Deb
07-07-06 8.00 100,000 103,500
Total 3,408,273
Metals (0.7%)
Alcan Aluminum
(U.S. Dollar)
01-15-22 8.88 200,000(b) 224,284
Grupo Minero Mexico
(U.S. Dollar) Company Guaranty Series A
04-01-08 8.25 250,000(b) 202,499
Imexsa Export Trust
(U.S. Dollar)
05-31-03 10.13 192,195(b,c) 154,237
NSM Steel
Company Guaranty
02-01-06 12.00 250,000 52,500
Total 633,520
Miscellaneous (5.4%)
Adams Outdoor Advertising
Sr Nts
03-15-06 10.75 100,000 105,250
Argentine Republic
(U.S. Dollar)
03-31-23 5.75 330,000(b) 231,206
Bistro Trust
Sub Nts
12-31-02 9.50 250,000 238,338
California Infrastructure
San Diego Gas & Electric
03-25-02 6.04 500,000 502,610
Southern California Edison
03-25-02 6.14 1,000,000 1,006,989
Chattem
Company Guaranty Series B
04-01-08 8.88 250,000 243,750
Delphes 2
(U.S. Dollar)
05-05-09 7.75 600,000(b,c) 587,250
Grant Geophysical
Company Guaranty Series B
02-15-08 9.75 100,000 76,625
Great Central Mines
(U.S. Dollar) Sr Nts
04-01-08 8.88 250,000(b) 241,250
Guangdong Enterprises
(U.S. Dollar) Sr Nts
05-22-07 8.88 200,000(b,c) 70,000
Hyder
(U.S. Dollar)
12-15-07 6.88 500,000(b,c) 525,316
ISG Resources
Sr Sub Nts
04-15-08 10.00 140,000 139,825
M & I Capital
Company Guaranty
12-01-26 7.65 300,000 304,860
Ormet
Company Guaranty
08-15-08 11.00 200,000(c) 186,250
Oshkosh Truck
Company Guaranty
03-01-08 8.75 250,000 242,500
Outsourcing Solutions
Sr Sub Nts Series B
11-01-06 11.00 140,000 128,100
Total 4,830,119
Multi-industry conglomerates (2.3%)
Coltec Inds
Company Guaranty
04-15-08 7.50 500,000 484,374
Crane
06-15-99 7.25 300,000 303,554
Hutchison Whampoa Finance
(U.S. Dollar) Company Guaranty Series A
08-01-07 6.95 250,000(b,c) 227,751
(U.S. Dollar) Company Guaranty Series B
08-01-17 7.45 125,000(b,c) 99,897
Pierce Leahy
Company Guaranty
05-15-08 8.13 200,000(c) 187,250
Prime Succession
Sr Sub Nts
08-15-04 10.75 85,000 79,156
USI American Holdings
Sr Nts Series B
12-01-06 7.25 425,000 449,120
Westinghouse Electric
06-01-01 8.88 250,000 268,619
Total 2,099,721
Paper & packaging (2.1%)
Ball
Sr Sub Nts
08-01-08 8.25 250,000 258,750
Chesapeake
05-01-03 9.88 100,000 118,162
Doman Inds
(U.S. Dollar)
03-15-04 8.75 500,000(b) 360,000
Gaylord Container
Sr Nts
06-15-07 9.75 150,000 114,375
Sr Nts Series B
06-15-07 9.38 100,000 76,250
Intl Paper
11-15-12 5.13 85,000 76,665
Owens-Illinois
Sr Nts
05-15-07 8.10 250,000 263,010
05-15-08 7.35 250,000 251,178
Quno
(U.S. Dollar) Sr Nts
05-15-05 9.13 250,000(b) 263,125
Silgan Holdings
06-01-09 9.00 100,000 94,375
Total 1,875,890
Real estate investment trust (0.4%)
Property Trust of America
02-15-14 7.50 300,000 316,788
Restaurants & lodging (0.5%)
MGM Grand
02-06-08 6.88 500,000 445,331
Retail (2.0%)
Amazon.com
Zero Coupon Sr Disc Nts
05-01-03 10.00 250,000(e) 142,813
Federated Dept Stores
02-15-28 7.00 250,000 246,595
Kroger
Sr Nts
07-15-06 8.15 500,000 547,371
Maxim Group
Company Guaranty Series B
10-15-07 9.25 250,000 250,000
Meyer (Fred)
Company Guaranty
03-01-08 7.45 250,000 262,460
Pep Boys - Manny, Moe & Jack
06-01-05 7.00 300,000 315,088
Total 1,764,327
Textiles & apparel (0.6%)
Hilfiger, (Tommy) USA
Company Guaranty
06-01-03 6.50 500,000 519,955
Transportation (1.5%)
Enterprise Rent-A-Car USA Finance
02-15-08 6.80 200,000(c) 196,646
Medium-term Nts
12-15-99 8.75 300,000(c) 310,826
Greater Beijing
(U.S. Dollar) Sr Nts
06-15-04 9.75 100,000(b,c) 43,000
Ryder System
Series N
05-15-01 9.25 150,000 163,818
Union Pacific
02-01-08 6.63 500,000 505,609
Zhuhai Highway
(U.S. Dollar) Sub Nts
07-01-08 12.00 250,000(b,c) 125,000
Total 1,344,899
Utilities -- electric (3.8%)
CalEnergy
Sr Nts
09-15-06 9.50 250,000(c) 275,313
California Infrastructure
Pacific Gas & Electric
06-25-02 6.15 1,000,000 1,007,360
Cleveland Electric Illuminating
1st Mtge Series B
05-15-05 9.50 100,000 111,647
CMS Energy
Sr Nts
05-15-02 8.13 200,000 212,619
Sr Nts Series B
11-15-00 7.38 300,000 307,710
Connecticut Light & Power
1st Mtge Series C
06-01-02 7.75 250,000 265,355
El Paso Electric
1st Mtge Series D
02-01-06 8.90 100,000 111,625
Espirito Santo - Escelsa
(U.S. Dollar)
07-15-07 10.00 250,000(b) 137,500
Houston Inds
06-01-01 9.38 150,000 166,082
Israel Electric
(U.S. Dollar) Sr Nts
12-15-06 7.25 300,000(b) 312,264
Midland Funding
Series A
07-23-05 11.75 100,000 115,000
Sithe Independence Funding
Series A
12-30-13 9.00 100,000 123,775
Western Massachusetts Electric
1st Mtge Series B
07-01-01 7.38 250,000 259,731
Total 3,405,981
Utilities -- gas (0.7%)
Columbia Gas System
Series E
11-28-10 7.32 500,000 542,181
Southwest Gas
Series F
06-15-02 9.75 100,000 113,993
Total 656,174
Utilities -- telephone (4.5%)
Airtouch Communications
05-01-08 6.65 500,000 526,584
Cable & Wireless Communications
(U.S. Dollar)
03-06-03 6.38 500,000(b) 510,457
Call-Net Enterprises
(U.S. Dollar) Sr Nts
08-15-08 8.00 175,000(b) 164,500
Grupo Iusacell
(U.S. Dollar)
07-15-04 10.00 100,000(b) 72,250
GTE Florida
02-01-28 6.86 500,000 526,068
GTE North
Series F
02-15-10 6.38 500,000 529,455
Intermedia Communications
Sr Nts Series B
11-01-07 8.88 100,000 97,500
McLeod USA
Sr Nts
03-15-08 8.38 105,000 100,275
MetroNet Communications
(U.S. Dollar) Zero Coupon Sr Disc Nts
06-15-03 10.03 300,000(b,e) 168,000
Philippine Long Distance Telephone
(U.S. Dollar) Medium-term Nts Series E
03-06-07 7.85 250,000(b,c) 200,663
Primus Telecommunications Group
Sr Nts
08-01-04 11.75 200,000 185,000
Qwest Communications Intl
11-01-08 7.50 500,000(c) 508,750
WorldCom
Sr Nts
01-15-04 9.38 435,000 453,212
Total 4,042,714
Total bonds
(Cost: $85,218,444) $84,494,441
Other (--%)
Issuer Shares Value(a)
Intermedia Communications
Warrants 100 $5,490
KMC Telecom Holdings
Warrants 700 2,188
Primus Telecommunications
Warrants 200 4,000
Versatel
Warrants 100 1,000
Total 12,678
Total other
(Cost: $5,331) $12,678
Short-term securities (4.5%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
U.S. government agencies
Federal Home Loan Mtge Corp Disc Nts
11-30-98 5.13% $500,000 $497,875
12-10-98 4.83 900,000 895,190
Federal Natl Mtge Assn Disc Nts
11-09-98 5.12 1,600,000 1,597,960
11-17-98 5.12 1,000,000 997,596
Total 3,988,621
Total short-term securities
(Cost: $3,988,621) $3,988,621
Total investments in securities
(Cost: $89,212,396)(h) $88,495,740
See accompanying notes to investments in securities.
</TABLE>
<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. As of Oct. 31,
1998, the value of foreign securities represented 12.25% of net assets.
(c) Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This security has
been determined to be liquid under guidelines established by the board.
(d) For zero coupon bonds, the interest rate disclosed represents the annualized
effective yield on the date of acquisition.
(e) For those zero coupon bonds that become coupon paying at a future date, the
interest rate disclosed represents the annualized effective yield from the date
of acquisition to interest reset date disclosed.
(f) 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, 1998, is as follows:
Security Acquisition Cost
date
American United Life Insurance*
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.
(g) Non-income producing. For long-term debt securities, item identified is in
default as to payment of interest and/or principal.
(h) At Oct. 31, 1998, the cost of securities for federal income tax purposes was
approximately $89,167,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation...............................$2,934,000
Unrealized depreciation...............................(3,605,000)
Net unrealized depreciation.......................... $ (671,000)
<PAGE>
Investments in Securities
IDS Life Series Fund, Inc.
Money Market Portfolio
Oct. 31, 1998 (Unaudited)
(Percentages represent value of investments compared to net assets)
Short-term securities (99.8%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
U.S. government agency (3.0%)
Federal Home Loan Mtge Corp Disc Nt
11-17-98 4.80% $1,100,000 $1,097,512
Total U.S. government agency
(Cost: $1,097,512) $1,097,512
Commercial paper (93.1%)
Automotive & related (7.8%)
Daimler-Benz
11-16-98 5.58 1,200,000 1,197,077
Toyota Motor Credit
02-04-99 5.18 1,700,000 1,676,880
Total 2,873,957
Banks and savings & loans (5.4%)
BBV Finance (Delaware)
01-20-99 5.60 1,500,000 1,481,539
Westpac Capital
11-30-98 5.60 500,000 497,708
Total 1,979,247
Broker dealers (13.4%)
Goldman Sachs Group
03-18-99 5.23 600,000 588,224
Merrill Lynch
11-12-98 5.61 1,000,000 998,187
Morgan Stanley, Dean Witter, Discover & Co
02-01-99 5.12 1,700,000 1,677,822
Salomon Smith Barney
02-10-99 5.25 1,700,000 1,675,098
Total 4,939,331
Commercial finance (6.7%)
CAFCO
02-04-99 5.17 900,000(b) 887,760
New Center Asset Trust
11-19-98 5.53 1,600,000 1,595,381
Total 2,483,141
Electronics (4.1%)
Siemens Capital
11-19-98 5.04 1,500,000 1,496,026
Financial services (22.3%)
Avco Financial Services
12-23-98 5.44 1,400,000 1,388,952
GMAC
01-27-99 5.11 1,800,000 1,777,824
Household Finance
11-24-98 5.27 1,700,000 1,694,073
Sheffield
01-13-99 5.32 1,700,000(b) 1,681,654
Windmill Funding
11-23-98 5.36 1,700,000(b) 1,694,212
Total 8,236,715
Health care (4.3%)
Pfizer
11-02-98 5.53 1,600,000(b) 1,599,511
Industrial equipment & services (4.6%)
Illinois Tool Works
01-05-99 5.22 1,700,000 1,683,949
Insurance (7.8%)
American General Finance
11-13-98 5.60 1,500,000(b) 1,497,015
USAA Captial
11-06-98 5.10 1,400,000 1,398,810
Total 2,895,825
Metals (3.5%)
Alcoa Aluminum Co of America
11-02-98 5.30 1,300,000 1,299,619
Miscellaneous (11.0%)
CIT Group Holdings
11-19-98 5.10 1,500,000 1,495,978
CXC
01-14-99 5.25 1,500,000(b) 1,483,750
Delaware Funding
11-16-98 5.42 1,100,000(b) 1,097,360
Total 4,077,088
Utilities -- telephone (2.2%)
GTE Funding
11-18-98 5.14 800,000 797,948
Total commercial paper
(Cost: $34,362,357) $34,362,357
Letter of credit (3.8%)
Bank of America-
AES Hawaii
12-03-98 5.21 1,400,000 1,393,365
Total letter of credit
(Cost: $1,393,365) $1,393,365
Total investments in securities
(Cost: $36,853,234)(c) $36,853,234
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) Also represents the cost of securities for federal income tax purposes at
Oct. 31, 1998.
<PAGE>
Investments in Securities
IDS Life Series Fund, Inc.
Managed Portfolio
Oct. 31, 1998 (Unaudited)
(Percentages represent value of investments compared to net assets)
Common stocks (60.2%)
Issuer Shares Value(a)
Aerospace & defense (0.6%)
General Motors Cl H 85,000 $3,251,250
Automotive & related (2.3%)
Danaher 140,000 5,591,250
Federal-Mogul 65,000 3,522,187
Tower Automotive 170,000(b) 3,782,500
Total 12,895,937
Banks and savings & loans (3.7%)
Bank One 81,000 3,958,875
Mellon Bank 80,000 4,810,000
Norwest 207,000 7,697,812
Washington Mutual 118,050 4,419,497
Total 20,886,184
Chemicals (1.1%)
Waste Management 140,000 6,317,500
Commercial finance (0.7%)
Finova Group 82,900 4,041,375
Communications equipment & services (0.7%)
Ericsson (LM) ADR Cl B 60,000(c) 1,357,500
Northern Telecom 60,000(c) 2,568,750
Total 3,926,250
Computers & office equipment (10.0%)
3Com 184,600(b) 6,657,138
America Online 30,000(b) 3,811,875
BMC Software 157,000(b) 7,545,812
Cisco Systems 140,000(b) 8,819,999
Compaq Computer 120,000 3,795,000
EMC 82,000(b) 5,278,750
Fiserv 40,000(b) 1,860,000
Intl Business Machines 40,000 5,937,500
Microsoft 112,100(b) 11,868,587
PeopleSoft 3,800(b) 80,513
Total 55,655,174
Electronics (1.7%)
Intel 60,000 5,351,250
Maxim Integrated Products 110,000(b) 3,925,625
Total 9,276,875
Financial services (2.1%)
Citigroup 86,500 4,070,906
Household Intl 106,700 3,901,219
Mutual Risk Management 111,666(c) 3,775,707
Total 11,747,832
Food (1.5%)
Suiza Foods 145,000(b) 4,730,625
U.S. Foodservice 80,000(b) 3,800,000
Total 8,530,625
Health care (7.1%)
ALZA 120,000(b) 5,745,000
Guidant 50,000 3,825,000
Immunex 65,000(b) 4,489,063
Pfizer 76,000 8,155,750
Schering-Plough 51,200 5,267,200
Sofamor Danek Group 80,000(b) 8,130,000
Sybron Intl 173,800(b) 4,301,550
Total 39,913,563
Health care services (1.6%)
Service Corp Intl 160,000 5,700,000
Tenet Healthcare 120,000(b) 3,352,500
Total 9,052,500
Household products (1.0%)
Newell 100,000 4,400,000
ServiceMaster 65,000 1,373,125
Total 5,773,125
Industrial equipment & services (0.7%)
Illinois Tool Works 60,000 3,847,500
Insurance (1.5%)
ACE 197,500(c) 6,690,313
Nationwide Financial
Services Cl A 45,000 1,867,500
Total 8,557,813
Leisure time & entertainment (1.5%)
Harley-Davidson 140,000 5,425,000
Mattel 78,600 2,819,775
Total 8,244,775
Media (4.3%)
Chancellor Media 150,000(b) 5,756,250
Comcast Cl A 120,000 5,895,000
MediaOne Group 72,800(b) 3,080,350
News Corp ADR 175,000(c) 4,779,688
Univision Communications
Cl A 154,600(b) 4,560,700
Total 24,071,988
Multi-industry conglomerates (6.4%)
Emerson Electric 115,000 7,590,000
General Electric 150,000 13,125,000
Tyco Intl 242,500(c) 15,019,844
Total 35,734,844
Paper & packaging (1.3%)
Fort James 185,000 $7,457,813
Restaurants & lodging (0.6%)
Starbucks 82,400(b) 3,574,100
Retail (7.4%)
Bed Bath & Beyond 130,000(b) 3,583,125
Costco Companies 80,000(b) 4,540,000
CVS 170,000 7,766,875
Kohl's 84,000(b) 4,016,250
Kroger 60,000(b) 3,330,000
Rite Aid 160,000 6,350,000
Safeway 100,000(b) 4,781,250
Wal-Mart Stores 100,000 6,899,999
Total 41,267,499
Utilities -- gas (0.8%)
El Paso Energy 130,000 4,606,875
Utilities -- telephone (1.4%)
MCI WorldCom 145,000 8,011,250
Total common stocks
(Cost: $264,919,560) $336,642,647
Preferred stocks & other (0.3%)
Issuer Shares Value(a)
Bar Technologies
Warrants 500 $27,500
Century Maintenance
13.25% Pay-in-kind 10,000(g,j) 990,000
Clearnet Communications
Warrants 990 6,435
EchoStar Communications
12.13% Pay-in-kind Series B 819(j) 782,145
Poland Telecom
Warrants 775 31,000
Vialog
Warrants 2,075 26,975
Total preferred stocks & other
(Cost: $2,016,632) $1,864,055
<PAGE>
<TABLE>
<CAPTION>
Bonds (26.2%)
Issuer Coupon Principal Value(a)
rate amount
Government obligations (3.7%)
Govt of Algeria
(U.S. Dollar)
<S> <C> <C> <C>
03-04-00 7.06% $68,182(c) $57,955
09-04-06 6.60 136,364(c) 66,818
Govt of Russia
(Russian Ruble)
12-15-20 6.63 1,500,000(c) 114,375
Govt Trust Certs Israel
11-15-01 9.25 179,788 188,376
Republic of Argentina
(Argentine Peso)
07-10-02 8.75 1,000,000(c,g) 770,000
Russia Federal Loan Bond
(Russian Ruble)
09-27-00 14.00 3,158,829(c) 6,696
U.S. Treasury
05-15-07 6.63 13,000,000 14,762,163
08-15-23 6.25 4,000,000 4,472,880
Total 20,439,263
Mortgage-backed securities (5.9%)
Federal Home Loan Mtge Corp
03-01-13 5.50 955,134 943,867
11-01-22 8.00 324,049 335,637
08-01-24 8.00 346,394 357,700
07-01-28 6.00 2,480,681 2,452,004
Federal Natl Mtge Assn
02-15-08 5.75 5,000,000 5,188,882
01-01-09 5.50 1,405,249 1,399,895
06-01-10 6.50 1,207,344 1,228,171
08-01-11 8.50 997,882 1,039,958
09-01-13 6.00 985,688 989,461
04-01-22 8.00 138,288 143,320
04-01-23 8.50 185,692 194,654
05-01-24 6.00 1,528,284 1,514,101
06-01-24 9.00 94,868 100,632
06-01-25 8.50 428,100 445,952
08-01-25 7.50 621,569 637,693
09-01-25 6.50 950,323 957,878
09-01-25 7.00 747,970 764,769
12-01-25 7.00 2,068,132 2,113,940
02-01-26 7.00 757,643 774,425
04-01-26 7.00 848,797 867,598
05-01-26 7.50 1,861,200 1,908,884
09-01-26 7.50 1,145,951 1,174,955
09-01-28 6.00 2,120,186 2,095,209
09-01-28 6.50 1,998,137 2,013,278
Collateralized Mtge Obligation
09-25-08 4.50 1,500,000 1,433,468
Trust Series Z
10-25-16 7.00 993,309(i) 995,127
Merrill Lynch Mtge Investors
06-15-21 7.86 232,683 227,011
Merrill Lynch Mtge Investors Cl D
Series 1996-C2
12-21-28 6.96 900,000 886,428
Total 33,184,897
Aerospace & defense (0.2%)
Compass Aerospace
Sr Sub Nts
04-15-05 10.13 760,000(g) 744,800
Northrop-Grumman
03-01-16 7.75 500,000 531,515
Total 1,276,315
Airlines (0.2%)
Atlantic Express
Company Guaranty
02-01-04 10.75 750,000 766,875
Continental Airlines
Series 1996A
04-15-15 6.94 480,548 523,504
Total 1,290,379
Automotive & related (0.2%)
MSX Intl
Company Guaranty
01-15-08 11.38 855,000 857,138
Banks and savings & loans (1.5%)
Banca Commercial Italian
(U.S. Dollar)
07-15-07 8.25 500,000(c) 574,205
Banco General
(U.S. Dollar)
08-01-02 7.70 750,000(c,g) 718,983
BankAmerica
Sub Nts Series B
12-31-26 7.70 1,000,000(g) 993,015
CEI Citicorp Holdings
(Argentine Peso)
02-14-07 11.25 250,000(c,g) 135,000
Dao Heng Bank
(U.S. Dollar) Sub Nts
01-24-07 7.75 750,000(c,g) 571,534
Firstar Capital
Company Guaranty Series B
12-15-26 8.32 500,000 525,842
Fleet Financial Group
Sub Deb
01-15-28 6.88 1,000,000 999,234
Mellon Capital
Company Guaranty Series A
12-01-26 7.72 750,000 746,520
Morgan (JP)
Sr Sub Medium-term Nts Series A
02-15-12 4.00 500,000(h) 470,880
Norwest
Sr Medium-term Nts Series G
09-15-02 6.38 800,000 831,609
Riggs Natl
Sub Nts
02-01-06 8.50 100,000 104,750
Union Planters Bank
Sub Nts
03-15-18 6.50 500,000 501,338
Union Planters Capital
Company Guaranty
12-15-26 8.20 1,000,000 1,038,165
Wilshire Financial Services
Series B
08-15-04 13.00 750,000(b) 262,500
Total 8,473,575
Building materials & construction (0.2%)
AAF-McQuay
Sr Nts
02-15-03 8.88 835,000 772,375
Pulte
Sr Nts
12-15-03 7.00 500,000 530,943
Total 1,303,318
Chemicals (0.2%)
Waste Management
Sr Nts
07-15-28 7.00 1,500,000 1,392,614
Communications equipment & services (0.8%)
Jordan Telecommunications Products
Sr Nts Series B
08-01-07 9.88 1,000,000 920,000
NTL
Zero Coupon Sr Nts
04-01-03 9.78 765,000(d,g) 416,925
PhoneTel Technologies
Sr Nts
12-15-06 12.00 1,000,000 230,000
US West Capital Funding
Company Guaranty
07-15-28 6.88 1,000,000 1,038,144
Vialog
Company Guaranty
11-15-01 12.75 2,075,000 1,680,750
Total 4,285,819
Computers & office equipment (0.1%)
Cooperative Computing
Sr Sub Nts
02-01-08 9.00 500,000 418,750
Electronics (0.2%)
Hyundai Semiconductor
(U.S. Dollar) Sr Nts
05-15-07 8.63 500,000(c,g) 371,917
Reliance Electric
04-15-03 6.80 500,000 536,708
Thomas & Betts
01-15-06 6.50 400,000 417,914
Total 1,326,539
Energy (0.8%)
Enron Oil & Gas
11-15-06 6.70 1,000,000 1,063,035
Honam Oil Refinery
(U.S. Dollar)
10-15-05 7.13 1,000,000(c,g) 547,800
Parker & Parsley Petroleum
Sr Nts
08-15-07 8.25 500,000 530,307
Rayovac
Sr Sub Nts Series B
11-01-06 10.25 925,000 972,406
USX
03-01-08 6.85 1,500,000 1,531,896
Total 4,645,444
Energy equipment & services (0.3%)
Foster Wheeler
11-15-05 6.75 750,000 759,161
Northern Offshore ASA
(U.S. Dollar) Company Guaranty
05-15-05 10.00 1,250,000(c,g) 843,750
Total 1,602,911
Financial services (0.5%)
Arcadia Financial
Sr Nts
03-15-07 11.50 750,000 495,000
Bat-Crave-800
08-12-00 6.68 700,000(g) 717,370
GenAmerica Capital
Company Guaranty
06-30-27 8.53 500,000 499,638
Salomon
Sr Nts
01-15-06 6.75 500,000 518,351
Wilmington Trust
05-01-08 6.63 800,000 820,654
Total 3,051,013
Food (0.2%)
Daya Guna
(U.S. Dollar) Company Guaranty
06-01-07 10.00 400,000(c,g) 238,000
Specialty Foods
Sr Nts Series B
10-01-02 11.13 1,000,000 870,000
Total 1,108,000
Health care (0.3%)
Watson Pharmaceuticals
Sr Nts
05-15-08 7.13 1,500,000 1,577,748
Health care services (0.8%)
Physician Sales & Service
Company Guaranty
10-01-07 8.50 1,000,000 1,017,500
Service Corp Intl
03-15-08 6.50 1,500,000 1,521,889
Tenet Healthcare
Sr Sub Nts
12-01-08 8.13 1,800,000(g) 1,783,407
Total 4,322,796
Industrial equipment & services (0.4%)
Ametek
Sr Nts
07-15-08 7.20 1,500,000 1,561,326
Case
08-01-05 7.25 850,000 930,247
Total 2,491,573
Insurance (0.6%)
American United Life Insurance
03-30-26 7.75 500,000(f) 542,804
Americo Life
Sr Sub Nts
06-01-05 9.25 600,000 596,250
New England Mutual
02-15-24 7.88 250,000(g) 266,133
Principal Mutual
03-01-44 8.00 250,000(g) 284,096
SAFECO Capital
Company Guaranty
07-15-37 8.07 1,000,000 1,019,275
SunAmerica
08-30-05 7.34 700,000 761,589
Total 3,470,147
Leisure time & entertainment (0.6%)
Coast Hotels & Casino
Company Guaranty Series B
12-15-02 13.00 500,000 548,125
IHF Holdings
Zero Coupon Sr Disc Nts Series B
11-15-99 9.47 750,000(d) 60,000
Time Warner
Sr Nts
01-15-28 6.95 500,000 502,426
Trump Atlantic City Assn/Funding
1st Mtge Company Guaranty
05-01-06 11.25 1,000,000 869,999
United Artists Theatres
Series 1995A
07-01-15 9.30 716,111 656,137
Waterford Gaming/LLC
Sr Nts
11-15-03 12.75 662,000 714,133
Total 3,350,820
Media (2.0%)
Capstar Broadcasting
Zero Coupon Sr Disc Nts
02-01-02 7.49 1,000,000(d,g) 750,000
Cox Communications
06-15-25 7.63 500,000 560,400
CSC Holdings
Sr Nts
07-15-08 7.25 1,000,000 975,459
Sr Sub Nts
11-01-05 9.25 500,000 523,125
Globo Communicacoes Participacoes
(U.S. Dollar) Sr Nts
12-05-08 10.63 1,000,000(c,g) 543,847
Grupo Televisa
(U.S. Dollar) Sr Nts
05-15-06 11.88 650,000(c) 635,375
Outdoor Systems
Company Guaranty
06-15-07 8.88 1,000,000 1,018,750
Paxson Communications
Sr Sub Nts
10-01-02 11.63 500,000 490,625
Price Communications Wireless
Sr Nts
12-15-06 9.13 1,000,000(g) 972,500
Rogers Cablesystems
(Canadian Dollar)
01-15-14 9.65 600,000(c) 399,745
Sony
(U.S. Dollar)
03-04-03 6.13 1,400,000(c) 1,439,714
TCI Communications
08-01-15 8.75 1,000,000 1,228,522
Time Warner Entertainment
Sr Nts
07-15-33 8.38 500,000 594,365
Turner Broadcasting
07-01-13 8.38 250,000 288,420
Viacom Intl
07-01-03 7.00 500,000 500,134
Sub Deb
07-07-06 8.00 500,000 517,500
Total 11,438,481
Metals (0.2%)
EnviroSource
Sr Nts
06-15-03 9.75 170,000 148,113
Sr Nts Series B
06-15-03 9.75 400,000 348,499
Imexsa Export Trust
(U.S. Dollar)
05-31-03 10.13 480,488(c,g) 385,592
NSM Steel
Company Guaranty
02-01-06 12.00 875,000 183,750
Total 1,065,954
Miscellaneous (1.3%)
Anker Coal Group
Sr Nts Series B
10-01-07 9.75 1,000,000 350,000
Bistro Trust
Sub Nts
12-31-02 9.50 1,000,000(g) 953,350
Centaur Mining & Exploration
(U.S. Dollar) Company Guaranty
12-01-07 11.00 500,000(c) 466,875
DTE Burns Harbor LLC
Sr Nts
01-30-03 6.57 700,000(g) 693,693
Great Central Mines
(U.S. Dollar) Sr Nts
04-01-08 8.88 1,000,000(c) 965,000
ISG Resources
04-15-08 10.00 835,000 833,956
Norcal Waste Systems
Company Guaranty Series B
11-15-05 13.50 500,000 562,500
NTEX
(U.S. Dollar) Sr Nts
06-01-06 11.50 700,000(c,g) 674,625
Outsourcing Solutions
Sr Sub Nts Series B
11-01-06 11.00 1,000,000 915,000
Poland Telecom Finance
(U.S. Dollar) Company Guaranty Series B
12-01-07 14.00 775,000(c) 744,000
Total 7,158,999
Multi-industry conglomerates (0.4%)
Coltec Inds
Company Guaranty
04-15-08 7.50 1,000,000 968,750
Crane
06-15-99 7.25 250,000 252,962
Hutchison Whampo Finance
(U.S. Dollar) Company Guaranty Series B
08-01-17 7.45 250,000(c,g) 199,794
USI American Holdings
Sr Nts Series B
12-01-06 7.25 850,000 898,239
Total 2,319,745
Paper & packaging (0.6%)
Doman Inds
(U.S. Dollar) Sr Nts Series B
11-15-07 9.25 350,000(c) 227,500
Gaylord Container
Sr Nts Series B
06-15-07 9.38 1,000,000 762,500
Intl Paper
11-15-12 5.13 250,000 225,486
Owens-Illinois
Sr Nts
05-15-08 7.35 1,500,000 1,507,070
Repap New Brunswick
(U.S. Dollar) Sr Nts
06-01-04 9.00 600,000(c) 559,500
Total 3,282,056
Real estate investment trust (0.1%)
Property Trust of America
02-15-14 7.50 750,000 791,970
Retail (0.4%)
Meyer (Fred)
Company Guaranty
03-01-08 7.45 1,000,000 1,049,839
Pep Boys - Manny, Moe & Jack
06-01-05 7.00 500,000 525,146
United Auto Group
Sr Sub Nts Series A
07-15-07 11.00 750,000 563,438
Total 2,138,423
Textiles & apparel (0.1%)
Westpoint Stevens
Sr Nts
06-15-08 7.88 750,000 764,063
Transportation (0.3%)
American Architectural
Company Guaranty
12-01-07 11.75 1,000,000 802,500
Enterprises Shipholding
(U.S. Dollar) Sr Nts
05-01-08 8.88 800,000(c) 678,117
Greater Beijing
(U.S. Dollar) Sr Nts
06-15-04 9.75 200,000(c,g) 86,000
06-15-07 10.00 300,000(c,g) 114,000
Total 1,680,617
Utilities -- electric (1.2%)
Alabama Power
1st Mtge
12-01-24 9.00 300,000 329,691
California Infrastructure
Pacific Gas & Electric
09-25-05 6.32 1,000,000 1,024,700
Cleveland Electric Illuminating
1st Mtge Series B
05-15-05 9.50 250,000 279,118
CMS Energy
Sr Nts
11-15-04 7.63 500,000 535,901
Connecticut Light & Power
1st Mtge Series C
06-01-02 7.75 1,000,000 1,061,419
El Paso Electric
1st Mtge Series D
02-01-06 8.90 650,000 725,563
Indiana & Michigan Power
Sale Lease-backed Obligation Series F
12-07-22 9.82 208,674 228,534
Jersey Central Power & Light
1st Mtge
11-01-25 6.75 1,000,000 957,039
Salton Sea Funding
Series C
05-30-10 7.84 300,000 335,438
Sithe Independence Funding
Series A
12-30-13 9.00 150,000 185,663
Texas-New Mexico Power
1st Mtge Series U
09-15-00 9.25 400,000 415,000
TU Electric Capital
Company Guaranty
01-30-37 8.18 750,000 778,334
Total 6,856,400
Utilities -- telephone (1.6%)
Airtouch Communications
05-01-08 6.65 1,000,000 1,053,167
Bell Atlantic
09-01-08 6.38 70,000 70,623
Series P
01-01-06 4.88 130,000 125,534
Call-Net Enterprises
(U.S. Dollar) Sr Nts
08-15-08 8.00 500,000(c) 470,000
Geotek Communications
Cv Sr Sub Nts
02-15-01 12.00 205,000(b) 256
GTE North
Series F
02-15-10 6.38 1,000,000 1,058,910
Intermedia Communications
Sr Nts Series B
11-01-07 8.88 500,000 487,500
Zero Coupon Sr Disc Nts Series B
07-15-02 9.52 1,000,000(d) 664,999
ITC Deltacom
Sr Nts
03-01-08 8.88 1,150,000 1,109,750
MetroNet Communications
(U.S. Dollar) Zero Coupon Sr Disc Nts
06-15-03 9.95 250,000(c,d) 140,000
Mountain States Telephone & Telegraph
06-01-05 5.50 80,000 80,266
Philippine Long Distance Telephone
(U.S. Dollar) Medium-term Nts Series E
03-06-07 7.85 500,000(c,g) 401,327
Qwest Communications Intl
11-01-08 7.50 1,000,000(g) 1,017,500
Rogers Cantel
(U.S. Dollar)
06-01-08 9.38 450,000(c) 453,375
U S WEST Communications
11-10-26 7.20 700,000 729,437
WorldCom
04-01-07 7.75 1,000,000 1,120,468
Total 8,983,112
Total bonds
(Cost: $152,142,990) $146,348,879
Short-term securities (10.6%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
U.S. government agencies (6.3%)
Federal Home Loan Bank Disc Nts
11-25-98 4.93% $8,900,000 $8,869,591
12-04-98 4.77 7,900,000 7,864,560
Federal Home Loan Mtge Corp Disc Nts
11-03-98 5.12 5,400,000 5,397,705
11-30-98 5.15 3,500,000 3,485,067
12-10-98 4.83 10,000,000 9,946,555
Total 35,563,478
Commercial paper (3.6%)
BellSouth Telecommunications
11-04-98 5.22 500,000 499,711
BMW US Capital
12-07-98 5.09 700,000 696,352
Gannett
11-02-98 5.27 1,300,000(e) 1,299,621
Glaxo Wellcome
11-25-98 5.09 1,700,000(e) 1,694,015
Merrill Lynch
12-07-98 5.12 4,100,000 4,078,551
Pioneer Hi-Bred
11-20-98 5.12 4,700,000 4,686,683
Reed Elsevier
11-19-98 5.32 4,200,000(e) 4,188,252
Xerox Credit
11-20-98 5.07 2,800,000 2,792,145
Total 19,935,330
Letter of credit (0.7%)
Chase Manhattan Bank-
Somerset Railroad
11-20-98 5.37 3,900,000 3,888,408
Total short-term securities
(Cost: $59,387,216) $59,387,216
Total investments in securities
(Cost: $478,466,398)(k) $544,242,797
See accompanying notes to investments in securities.
</TABLE>
<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. For long-term debt securities, item identified is in
default as to payment of interest and/or principal.
(c) Foreign security values are stated in U.S. dollars. For debt securities,
principal amounts are denominated in the currency indicated. As of Oct. 31,
1998, the value of foreign securities represented 8.72% of net assets.
(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) 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.
(f) 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, 1998, is as follows:
Security Acquisition Cost
date
American United Life Insurance*
7.75% 2026 02-13-96 $500,000
*Represents a security sold under Rule 144A, which is exempt from registration
under the Securities Act of 1933, as amended.
(g) 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.
(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, 1998.
(i) 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; similar to a zero coupon bond.
(j) Pay-in-kind securities are securities in which the issuer makes interest or
dividend payments in cash or in additional securities. The securities usually
have the same terms as the original holdings.
(k) At Oct. 31, 1998, the cost of securities for federal income tax purposes was
approximately $478,326,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation............................$..82,303,000
Unrealized depreciation..............................(16,386,000)
Net unrealized appreciation........................$ 65,917,000
<PAGE>
<TABLE>
<CAPTION>
IDS Life Series Fund, Inc.
Government Securities Portfolio
Oct. 31, 1998 (Unaudited)
(Percentages represent value of investments compared to net assets)
Bonds (96.4%)
Issuer Coupon Principal Value(a)
rate amount
Mortgage-backed securities (70.2%)
Federal Home Loan Mtge Corp
<S> <C> <C> <C>
06-01-12 7.00% $208,689 $212,903
01-01-13 6.00 381,103 381,716
02-01-13 6.50 282,211 286,290
12-01-27 6.00 297,792 294,812
05-01-28 7.00 392,465 400,299
08-01-28 7.00 224,578 229,087
Federal Natl Mtge Assn
08-23-05 6.82 925,000 1,012,122
02-15-08 5.75 550,000 570,777
05-15-08 6.00 400,000 424,119
06-01-10 6.50 301,836 307,043
08-01-11 8.50 129,725 135,195
09-01-12 7.00 237,170 241,914
03-01-13 6.00 193,070 193,793
04-01-13 5.50 389,072 384,573
06-01-13 6.00 759,682 762,590
07-01-13 6.00 494,558 496,689
03-01-23 9.00 93,889 99,535
04-01-23 8.50 185,692 194,654
09-01-23 8.50 264,984 277,276
03-01-25 8.50 80,191 83,535
09-01-25 7.00 219,948 224,888
04-01-27 6.50 271,690 273,540
10-01-27 7.00 3,809 3,892
03-01-28 6.50 1,091,060 1,099,349
04-01-28 6.00 297,939 294,331
08-01-28 7.00 489,070 499,730
09-01-28 6.00 676,505 668,537
10-01-28 6.00 747,500 738,695
Collateralized Mtge Obligation
07-18-19 5.50 250,000 245,965
Govt Natl Mtge Assn
05-15-17 8.00 55,229 57,673
08-15-25 7.50 337,507 347,737
Total 11,443,259
U.S. government obligations (26.2%)
Resolution Funding Corp
10-15-19 8.13 400,000 522,453
Zero Coupon
04-15-05 5.66 200,000(b) 146,487
10-15-09 7.12 460,000(b) 259,303
U.S. Treasury
02-28-03 5.50 150,000 156,726
11-15-16 7.50 700,000 872,732
08-15-23 6.25 725,000 810,710
11-15-24 7.50 895,000 1,160,630
08-15-25 6.88 150,000 181,855
02-15-27 6.63 130,000 154,223
Total 4,265,119
Total bonds
(Cost: $14,970,586) $15,708,378
Short-term security (2.4%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
U.S. government agency
Federal Home Loan Bank Disc Nt
11-12-98 5.10% $400,000 $399,323
Total short-term security
(Cost: $399,323) $399,323
Total investments in securities
(Cost: $15,369,909)(c) $16,107,701
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, 1998, the cost of securities for federal income tax purposes was
approximately $15,369,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation.......................................$745,000
Unrealized depreciation.........................................(6,000)
Net unrealized appreciation...................................$739,000
</TABLE>
<PAGE>
IDS Life Series Fund, Inc.
International Equity Portfolio
Oct. 31, 1998 (Unaudited)
(Percentages represent value of investments compared to net assets)
Common stocks (74.4%)
Issuer Shares Value(a)
Argentina (0.3%)
Utilities -- telephone
Telefonica de Argentina 23,000(b) $760,438
Australia (1.9%)
Insurance (1.0%)
AMP 186,000(b) 2,214,181
Transportation (0.9%)
Brambles Inds 88,000 1,931,336
Canada (1.4%)
Multi-industry conglomerates (0.9%)
Bombardier Cl B 164,000 1,950,356
Utilities -- telephone (0.5%)
BCE 31,800(b) 1,083,188
Chile (0.1%)
Multi-industry conglomerates
Madeco 37,000(b) 286,750
France (11.1%)
Banks and savings & loans (2.3%)
Banque Natl de Paris 84,244 5,335,274
Communications equipment & services (1.5%)
Alcatel Alsthom 29,621 3,299,812
Energy (2.5%)
Total Petroleum Cl B 50,000 5,768,020
Food (1.6%)
Sodexho Alliance 19,048(b) 3,698,874
Household products (0.2%)
Rhone-Poulenc Cl A 11,139 509,188
Leisure time & entertainment (1.5%)
Accor 16,057 $3,372,360
Utilities -- electric (1.5%)
Suez Lyonnaise des Eaux 19,038(b) 3,409,127
Germany (8.5%)
Banks and savings & loans (2.6%)
Bayerische Vereinsbank 75,406 5,986,768
Industrial equipment & services (4.6%)
Mannesmann 105,050 10,338,191
Multi-industry conglomerates (1.3%)
Viag 4,352(b) 2,955,986
Hong Kong (0.6%)
Multi-industry conglomerates
Hutchison Whampoa 200,000 1,433,180
Italy (10.0%)
Banks and savings & loans (7.7%)
Banca Intesa 884,710(b) 4,468,493
Credito Italiano 1,314,307 7,055,200
Instituto Bancario
San Paolo di Torino 398,411 5,857,000
Total 17,380,693
Utilities -- telephone (2.3%)
Telecom Italia 900,000 5,191,710
Japan (3.9%)
Automotive & related (0.5%)
Honda Motor 35,000 1,051,050
Banks and savings & loans (0.2%)
Sakura Bank 169,000 420,506
Computers & office equipment (0.9%)
Fujitsu 201,000 $2,138,479
Electronics (1.2%)
Fujikura 170,000 787,644
Ibiden 53,000 804,890
Tokyo Electron 38,000 1,235,692
Total 2,828,226
Media (0.4%)
Sony 16,000 1,015,874
Utilities -- telephone (0.7%)
NTT Mobile Communication
Network 470(b) 1,697,726
Mexico (1.1%)
Media (0.3%)
Grupo Televisa 26,900 729,663
Multi-industry conglomerates (0.3%)
Grupo Financiero Banorte
Cl B 1,000,000 593,589
Retail (0.5%)
Controladora Comercial
Mexicana 90,000(b) 1,125,000
Singapore (0.5%)
Banks and savings & loans (0.1%)
United Overseas Bank 32,000 150,416
Electronics (0.4%)
GP Batteries Intl 380,000 835,886
Spain (1.6%)
Utilities -- telephone
Telefonica de Espana 81,216(b) $3,667,000
Sweden (2.0%)
Banks and savings & loans (0.7%)
Nordbanken Holding 263,119 1,577,398
Communications equipment & services (1.3%)
Ericsson (LM) Cl B 129,973(b) 2,930,280
Switzerland (4.7%)
Banks and savings & loans (1.7%)
UBS 14,475 3,967,143
Health care (3.0%)
Novartis 3,808 6,854,681
United Kingdom (16.6%)
Health care (2.0%)
SmithKline Beecham 360,000 4,438,692
Media (2.0%)
British Sky Broadcasting
Group 557,615(b) 4,641,865
Multi-industry conglomerates (4.5%)
General Electric 784,787 6,273,431
Williams 621,664 3,871,537
Total 10,144,968
Retail (1.7%)
Great Universal Stores 362,974 $3,946,725
Utilities -- telephone (6.4%)
Cable & Wireless
Communications 568,861 4,280,736
Orange 620,358(b) 5,763,932
Vodafone 342,204 4,568,731
Total 14,613,399
United States (10.0%)
Beverages & tobacco (1.0%)
Philip Morris 46,300 2,367,088
Computers & office equipment (0.8%)
Compaq Computer 60,000 1,897,500
Electronics (0.5%)
Intel 11,500 1,025,656
Financial services (0.6%)
Citigroup 28,000 1,317,750
Health care (1.0%)
Pfizer 20,500 2,199,906
Household products (0.9%)
Colgate-Palmolive 24,000 2,121,000
Retail (4.3%)
Rite Aid 90,000 3,571,875
Safeway 81,800(b) 3,911,063
Wal-Mart Stores 32,600 2,249,400
Total 9,732,338
Utilities -- telephone (0.9%)
AirTouch Communications 36,800(b) 2,060,800
Total common stocks
(Cost: $151,871,895) $168,996,036
Other (0.4%)
Issuer Shares Value(a)
Italy
Banca Intesa
Warrants 884,710 $890,461
Total other
(Cost: $194,746) $890,461
Bond (5.7%)
Issuer Coupon Principal Value(a)
rate amount
United Kingdom
United Kingdom Treasury
(British Pound)
06-07-02 7.00% 7,300,000 $12,970,071
Total bond
(Cost: $12,127,483) $12,970,071
Short-term securities (19.1%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
U.S. government agency (12.7%)
Federal Farm Credit Disc Nts
11-02-98 5.11% $2,700,000 $2,699,237
11-19-98 5.12 4,400,000 4,388,180
Federal Home Loan Bank Disc Nts
11-25-98 4.93 10,000,000 9,965,833
12-04-98 4.77 1,900,000 1,891,476
Federal Home Loan Mtge Corp Disc Nts
11-13-98 5.15 2,400,000 2,395,563
12-10-98 4.77 4,400,000 4,376,778
12-10-98 4.83 3,100,000 3,083,432
Total 28,800,499
Commercial paper (6.4%)
BMW US Capital
11-24-98 5.09 1,500,000 1,494,930
Commerzbank U.S. Finance
11-03-98 5.27 1,300,000 1,299,431
Fleet Funding
11-23-98 5.35 1,600,000(c) 1,594,562
GTE Funding
11-05-98 5.32 1,000,000 999,264
11-10-98 5.30 900,000 898,680
Intl Lease Finance
11-20-98 5.12 3,500,000 3,490,083
Natl Rural Utilities
12-14-98 5.10 2,600,000 2,583,889
Paccar Financial
11-04-98 5.27 1,700,000 1,699,008
USAA Capital
11-06-98 5.10 500,000 499,575
Total 14,559,422
Total short-term securities
(Cost: $43,359,921) $43,359,921
Total investments in securities
(Cost: $207,554,045)(d) $226,216,489
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) Commercial paper sold within terms of a private placement memorandum, exempt
from registration under Section 4(2) of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "accredited investors."
This security has been determined to be liquid under guidelines established by
the board.
(d) At Oct. 31, 1998, the cost of securities for federal income tax purposes was
approximately $207,554,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation.........................$ 30,209,000
Unrealized depreciation..........................(11,547,000)
Net unrealized appreciation.....................$ 18,662,000
<PAGE>
Board members and officers
Independent board members and officers
Chairman William R. Pearce*
of the board Chairman of the board, Board Services Corporation (provides
administrative services to boards including the boards of the
IDS and IDSLife funds and Master Trust portfolios).
H. Brewster Atwater, Jr.
Former chairman and chief executive officer, General Mills,
Inc.
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for Public
Policy Research.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Alan K. Simpson
Former United States senator for Wyoming.
Edson W. Spencer
Retired chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board, The Valspar Corporation.
Officer
Vice president, Leslie L. Ogg*
general counsel President of Board Services Corporation.
and secretary
Board members and officers associated with AEFC
President John R. Thomas*
Senior vice president, AEFC.
William H. Dudley*
Senior advisor to the chief executive officer, AEFC.
David R. Hubers*
President and chief executive officer, AEFC.
Officers associated with AEFC
Vice president Peter J. Anderson*
Senior vice president, AEFC
Vice president Frederick C. Quirsfeld*
Vice president, AEFC
* Interested person as defined by the Investment Company Act of 1940.
<PAGE>
<PAGE>
IDS mutual funds
Global/International funds
Funds in this group seek capital growth and/or income by investing primarily in
foreign securities. Foreign investments may be subject to currency fluctuations
and political and economic risks of the countries in which the investments are
made. They are high risk mutual funds with a potential for high reward.
IDS Emerging Markets Fund
Invests in a Portfolio comprised primarily of stocks of companies in developing
countries throughout the world that are believed to offer growth potential.
Seeks to provide long-term growth of capital.
(icon of) world with countries
IDS Global Growth Fund
Invests in a Portfolio comprised primarily of stocks of companies throughout the
world that are positioned to meet market needs in a changing world economy.
These companies offer above-average potential for long-term growth.
(icon of) world
IDS International Fund
Invests primarily in common stocks of foreign companies that offer potential for
superior growth. The Fund may invest up to 20% of its assets in the U.S. market.
(icon of) three flags
IDS Global Balanced Fund
Invests in stocks and bonds in, for the most part, major markets throughout the
world, including the U.S. Seeks to provide a balance of growth of capital and
current income.
(icon of) scale of globes
IDS Global Bond Fund
Invests in a Portfolio comprised primarily of debt securities of U.S. and
foreign issuers to seek high total return through income and growth of capital.
(icon of) globe
Growth funds
Funds in this group seek capital growth, primarily from common stocks. They are
high risk mutual funds with a potential for high reward.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic companies that
explore for, mine and process or distribute gold and other precious metals. A
highly aggressive and speculative fund that seeks long-term growth of capital.
(icon of) cart of precious gems
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies emphasizing
technological innovation and productivity enhancement. Buys and holds larger
growth-oriented stocks.
(icon of) ship
IDS Small Company Index Fund
Invests in all or a representative group of the equity securities comprising the
S&P SmallCap 600 Index, as it strives to provide long-term capital appreciation.
(icon of) building
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected for their
potential for above-average growth. Above-average means that their growth
potential is better, in the opinion of the portfolio's investment manager, than
the S&P 500 Stock Index.
(icon of) chess piece
IDS Research Opportunities Fund
Invests in a Portfolio comprised primarily of equity securities of companies
included in the S&P 500 Stock Index that are believed to have strong growth
potential. The Portfolio is managed using a research methodology by the Research
Department of AEFC. Goal is long-term appreciation.
(icon of) magnifying glass
IDS Growth Fund
Invests in a Portfolio comprised primarily of companies that have above-average
potential for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) trees
IDS New Dimensions Fund
Invests in a Portfolio comprised primarily of companies with
significant growth potential due to superiority in
technology, marketing or management. The Fund frequently
changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The Fund holds stocks for the
long term with the goal of capital growth.
(icon of) shooting star
Growth & income funds
These funds focus on securities of medium to large, well-established companies
that offer long-term growth of capital and reasonable income from dividends and
interest. Foreign investments may be subject to currency fluctuations and
political and economic risks of the countries in which the investments are made.
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks that generaly pay
dividends and bonds. Seeks growth of capital and income.
(icon of) three pine trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities purchased are
those recommended by our research analysts as the best from each industry
represented on the index. Offers potential for long-term growth as well as
dividend income.
(icon of) ribbon
IDS Managed Allocation Fund
Invests in a Portfolio comprised primarily of U.S. equity securities, U.S. and
foreign debt securities, foreign equity securities and money market instruments.
The Fund provides diversification among these major investment categories and
has a target mix that represents the way the Fund's investments will be
allocated over the long term. Seeks maximum total return.
(icon of) gyroscope
IDS Stock Fund
Invests in a Portfolio comprised primarily of common stock of companies
representing many sectors of the economy. Seeks current income and growth of
capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential for growth
of capital and income.
(icon of) three growing flowers
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek high current
income and growth of income and capital with reduced volatility.
(icon of) light bulb
IDS Diversified Equity Income Fund
Invests in a Portfolio comprised primarily in high-yielding common stocks to
seek high current income and, secondarily, to benefit from the growth potential
offered by stock investments.
(icon of) two puzzle pieces
IDS Mutual
Invests in a Portfolio that seeks to balance between common stocks and senior
securities (preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Income funds
The funds in this group invest their assets primarily in corporate bonds or
government securities to seek interest income. Secondary objective is capital
growth. Risk varies by bond quality.
IDS Extra Income Fund
Invests in a Portfolio comprised mainly of long-term, high-yielding corporate
fixed-income securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) two coins
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher rated, lower risk
bond categories, or the equivalent, and in government bonds.
(icon of) Greek column
IDS Selective Fund
Invests in a Portfolio comprised primarily of high-quality corporate bonds and
other highly rated debt instruments including government securities and
short-term investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests in a Portfolio comprised primarily of securities issued or guaranteed as
to the timely payment of principal and interest by the U.S. government, its
agencies and instrumentalities. Seeks a high level of current income and safety
of principal consistent with its type of investments.
(icon of) shield with eagle head
Tax-exempt income funds
These funds provide tax-free income by investing in municipal bonds. The income
is generally free from federal income tax, but a portion of the income may be
subject to state and local taxes. Risk varies by bond quality.
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government units, with at
least 75% in the four highest rated, lowest risk bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to the timely
payment of principal and interest. The insurance feature minimizes credit risk
of the Fund but does not guarantee the market value of the Fund's shares.
(icon of) shield with star
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to provide
income to residents of each respective state that is exempt from federal, state
and local income taxes. (New York is the only state that is exempt at the local
level.)
(icon of) shield with U.S. enclosed
IDS High Yield Tax-Exempt Fund
Invests in a Portfolio comprised primarily of medium- and lower-quality
municipal bonds and notes. Lower-quality securities generally involve greater
risk of principal and income.
(icon of) shield with basket of apples enclosed
IDS Intermediate Tax-Exempt Fund
Invests in mainly investment-grade bonds and other debt securities with
intermediate-term maturities issued by state and local government units. Goal is
to seek a high level of current income exempt from federal taxes.
(icon of) shield with tree enclosed
Money market funds
These money market funds have three main goals: conservation of capital,
constant liquidity and the highest possible current income consistent with these
objectives. An investment in these funds is neither insured nor guaranteed by
the U.S. government, and there can be no assurance that these funds will be able
to maintain a stable net asset value of $1.00 per share. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial paper,
bankers' acceptances, certificates of deposit (CDs) and other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and local
governments to seek high current income exempt from federal income taxes.
(icon of) shield with piggy bank enclosed
For more complete information about any of these funds, including charges and
expenses, you can obtain a prospectus by contacting your financial advisor or
writing to American Express Shareholder Service, P.O. Box 534, Minneapolis, MN
55440-0534. Read it carefully before you invest or send money.
<PAGE>
Quick telephone reference*
American Express Redemptions and exchanges, National/Minnesota
Financial Advisors dividend payments or 800-437-3133
Telephone Transaction reinvestments and automatic
Service payment arrangements Mpls./St. Paul area:
612-671-3800
TTY Service For the hearing impaired 800-846-4852
American Express Automated account information 800-862-7919
Financial Advisors (TouchTone(R) phones only),
Easy Access Line including current fund prices
and performance, account values
and recent account transactions
*You may experience delays when call volumes are high.
<PAGE>
AMERICAN EXPRESS Financial Advisors
IDS Life Series Fund
IDS Tower 10
Minneapolis, MN 55440-0010
