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FINANCIAL PLANNING
IDS Global Bond Fund
1993 annual report
(prospectus enclosed)
(Icon of) globe
The goal of IDS Global Bond Fund, a part of IDS Global Series,
Inc., is a high total return through income and growth of capital.
IDS
An American Express company
AMERICAN
EXPRESS
Distributed by IDS Financial Services Inc.
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PAGE 2
(Icon of) globe
A bounty of bonds
In today's global economy, investment opportunities don't stop at
the water's edge. While bonds issued by the U.S. government and
corporations once made up almost all of the bond market, today more
than half of the world's debt securities are issued from outside
the United States. This means expanded opportunity for investors.
Global Bond Fund's aim is to take advantage of opportunities in
bond markets at any time and in any place, providing investors with
greater portfolio diversification.
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Contents
(Icon of) One book inside of another and their both being opened
together.
The purpose of this annual report is to tell investors how the fund
performed.
The prospectus which is bound into the middle of this annual
report, describes the fund in detail.
1993 annual report
From the president 4
From the portfolio manager 4
Ten largest holdings 6
Long-term performance 7
Making the most of your fund 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 20
IDS mutual funds 24
Federal income tax information 27
1993 prospectus
The fund in brief
Goal 3p
Types of fund investments 3p
Manager and distributor 3p
Portfolio manager 3p
Sales charge and fund expenses
Sales charge 4p
Operating expenses 4p
Performance
Financial highlights 5p
Total returns 6p
Yield 7p
Key terms 8p
How to buy, exchange or sell shares
How to buy shares 9p
How to exchange shares 11p
How to sell shares 11p
Reductions of the sales charge 15p
Waivers of the sales charge 17p
Special shareholder services
Services 18p
Quick telephone reference 18p
Distributions and taxes
Dividend and capital gain distributions 19p
Reinvestments 20p
Taxes 21p
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PAGE 4
Investment policies
Facts about investments and their risks 24p
Valuing assets 30p
How the fund is organized
Shares 31p
Voting rights 31p
Shareholder meetings 32p
Directors and officers 32p
Investment manager and transfer agent 34p
Distributor 35p
About IDS
General information 37p
Appendix
Description of corporate bond ratings 38p
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PAGE 5
To our shareholders
(Photo of) William R. Pearce, President of the fund
(Photo of) Ray Goodner, Portfolio manager
From the president
As you read this report, you'll find it very different from those
you have received from us in the past. We've made substantial
changes in the design and organization to make the information
easier to find and understand.
The annual report and prospectus are combined into a single
document, and each provides information important to you. The
annual report gives you the fund's performance information and a
snapshot of its investments. A good place to begin is with the
portfolio manager's letter, which describes the events and
investment strategies that most influenced the fund's performance
during the year. The prospectus includes essential data such as
the fund's investment policies and service information.
In redesigning our reports, we asked IDS financial planners and
some of you for suggestions and recommendations. We believe that
you'll find the results of our work worthwhile.
William R. Pearce
From the portfolio manager
The past fiscal year was an excellent period for bond markets in
all major economies, as falling interest rates drove bond values
higher.
Complementing those gains were favorable currency-exchange
conditions in some countries, which enhanced the fund's total
return.
Looking at bond performance alone (not including the effects of
currency values), Europe was the big winner. Recessionary
conditions, coupled with declining inflation, often led to much
lower interest rates. In Italy, for example, long-term bond rates
fell from 13.5 percent to just under 9 percent during the 12
months.
Japan is top performer
Factoring in the effect of currency movements, Japan's bond market
provided the best overall return. The weakness of the dollar
against the Japanese yen, which favors U.S. investors, boosted the
overall return of Japanese bonds in the portfolio. In the recent
period, the yen hit an all-time high against the dollar.
The fund was well-positioned to benefit from this trend, as we
maintained the highest percentage of the portfolio's foreign
investments in Japan throughout the 12 months. Except for the
strong British pound, European currencies generally didn't add to
the fund's performance.
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Not to be ignored is the so-called "dollar-bloc" bond market,
comprised of the United States, Canada and Australia. An ongoing
low inflation rate increased investors' appetite for bonds,
resulting in falling interest rates and, automatically, higher bond
prices. On average, we kept about half of the assets in this
market.
In addition to the positive bond environments around the world, the
fund also benefited from our decision to emphasize long-maturity
bonds, which appreciate the most when interest rates decline.
Recent portfolio shifts
Late in the period, we began reducing our exposure to Japan and
Europe and moved more money into the United States, Canada and
Australia. Together, investments in this dollar-bloc market
currently make up about two-thirds of the portfolio, most of that
in the United States.
A growing percentage of the portfolio is going into so-called
"emerging markets" in Latin America, including Mexico, Brazil and
Argentina. Not only do these bonds, which are denominated in U.S.
dollars, offer high yields, we also are encouraged by improving
investment climates brought about by political reforms in those
countries.
At present, we think prospects are good for further interest rate
declines in Europe, where we continue to have healthy exposure. In
the United States, we're looking for a relatively stable rate
environment, while in Japan we think rates can continue to fall.
We have positioned the portfolio accordingly, and if our outlook is
correct, shareholders should be well-rewarded in the months ahead.
Ray Goodner
12-month performance
(All figures per share)
Net asset value (NAV)
Oct. 31, 1993 $ 6.27
Oct. 31, 1992 $ 5.91
Increase $ 0.36
Distributions
Nov. 1, 1992 - Oct. 31, 1993
From income $ 0.48
From capital gains $ 0.04
Total distributions $ 0.52
Total return* +15.8%
*If you purchased shares in the fund during this period, your
return also would have been affected by the sales charge, as
described in the prospectus.
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<TABLE>
<CAPTION>
Your fund's ten largest holdings
(pie chart representing) The ten holdings listed here make up
41.68% of the fund's net assets.
____________________________________________________________________________________
Percent Value
(of fund's net assets) (as of Oct. 31, 1993)
____________________________________________________________________________________
<S> <C> <C>
U.S. Treasury 6.97% $17,792,549
7.625% Bond 2022
U.K. Treasury 5.39 13,753,368
9% Bond 2000
Government of Canada 5.33 13,588,684
10.50% Bond 2001
U.S. Treasury 5.01 12,773,344
8.875% Bond 2019
Federal Republic of Germany 3.80 9,688,380
6.375% Bond 1998
Federal Republic of Germany 3.58 9,123,450
6% Bond 1997
U.K. Treasury 3.21 8,195,751
8% Bond 2003
Government of Japan 3.21 8,192,250
4.60% Bond 1998
Government of Japan 2.73 6,979,000
4.90% Bond 2003
Government of Japan 2.45 6,264,000
5.70% Bond 2013
</TABLE>
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PAGE 8
Your fund's long-term performance
How your $10,000 has grown in IDS Global Bond Fund
$17,040
Global Bond Fund
Salomon Brothers Global
Government Bond Composite Index
$10,000
$9,500
4/1/89 89 90 91 92 93
Assumes: Holding period from 4/1/89 to 10/31/93. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $5,155.
Salomon Brothers Global Government Bond Composite Index is a
representative list of government bonds of 17 countries throughout
the world. The index is a general measure of government bond
performance. Performance is expressed in the U.S. dollar as well
as the currencies of governments making up the index. The bonds
included in the index may not be in IDS Global Bond Fund.
If you invested $10,000 in Global Bond Fund and held the fund until
Oct. 31, 1993, reinvesting all dividends, your investment would
have grown to $17,040.
On the chart above you can see how the fund's total return compared
to a widely cited performance index, Salomon Brothers Global
Government Bond Composite Index. In comparing Global Bond Fund to
the index, you should take account of the fact that the fund's
performance reflects the maximum sales charge of 5%, while no such
charges are reflected in the performance of the index. If you were
actually to buy either individual bonds or bond mutual funds, any
sales charges that you pay would reduce your total return as well.
Average annual total return
(as of Oct. 31, 1993)
1 year Since inception*
+10% +12.27%
* Period from March 20, 1989 to Oct. 31, 1993.
Your investment and return value fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures include the effect of the 5% sales charge. Past
performance is no guarantee of future results.
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PAGE 9
Making the most of your fund
Build your assets systematically
To keep your assets growing steadily, one of the best ways to
invest in the fund is by dollar-cost averaging -- a time-tested
strategy that can make market fluctuations work for you. To
dollar-cost average, simply invest a fixed amount of money
regularly. You'll automatically buy more shares when the fund's
share price is low, fewer shares when it is high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 16 6.25
Mar 100 9 11.11
Apr 100 5 20.00
May 100 7 14.29
June 100 10 10.00
July 100 15 6.67
Aug 100 20 5.00
Sept 100 17 5.88
Oct 100 12 8.33
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low
(arrow in table pointing to August) and fewer shares when the per
share market price is high.
You have paid an average price of only $10.81 per share over the 10
months, while the average market price actually was $13.10.
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold
by the fund exceed losses
o you receive income when the fund's stock dividends, interest
and short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
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PAGE 10
Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS Global Series, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS Global Bond Fund (a series of IDS Global Series, Inc.) as of
October 31, 1993, and the related statement of operations for the
year then ended and the statements of changes in net assets for
each of the years in the two-year period ended October 31, 1993,
and the financial highlights for each of the years in the four-year
period ended October 31, 1993, and for the period from March 20,
1989 (commencement of operations), to October 31, 1989. These
financial statements and the financial highlights are the
responsibility of fund management. Our responsibility is to
express an opinion on these financial statements and the financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and
sold but not received or delivered, we request confirmations from
brokers, and where replies are not received, we carry out other
appropriate auditing procedures. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Global Bond Fund at October 31, 1993, and the results of its
operations for the year then ended and the changes in its net
assets for each of the years in the two-year period ended
October 31, 1993, and the financial highlights for the periods
stated in the first paragraph above, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick
Minneapolis, Minnesota
December 3, 1993
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PAGE 11
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Global Bond Fund
Oct. 31, 1993
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $244,498,160) $253,862,414
Cash in bank on demand deposit 1,278,326
Receivable for investment securities sold 2,166
Dividends and accrued interest receivable 4,580,795
Receivable for forward foreign currency contracts held, at value (Notes 1 and 6) 10,329,907
Organization costs (Note 7) 2,793
_____________________________________________________________________________________________________________
Total assets 270,056,401
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Dividends payable to shareholders 2,299,318
Payable for investment securities purchased 1,667,132
Payable for forward foreign currency contracts held, at value (Notes 1 and 6) 10,388,287
Payable to investment manager for organization costs (Note 7) 3,292
Accrued investment management and services fee 165,467
Accrued distribution fee 13,146
Accrued transfer agency fee 33,960
Other accrued expenses 84,601
Open option contracts written, at value (premium received $82,455)(Note 5) 227,250
_____________________________________________________________________________________________________________
Total liabilities 14,882,453
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $255,173,948
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- $.01 par value; outstanding 40,729,765 shares (Note 1) $ 407,298
Additional paid-in capital 240,129,752
Undistributed net investment income (Note 1) 1,860,201
Accumulated net realized gain on investments 3,078,922
Unrealized appreciation of investments (Notes 4 and 6) 9,697,775
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $255,173,948
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 6.27
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Financial statements
Statement of operations
IDS Global Bond Fund
Year ended Oct. 31, 1993
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $17,104) $ 205,906
Interest (net of foreign taxes withheld of $24,582) 9,318,348
_____________________________________________________________________________________________________________
Total income 9,524,254
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 1,279,029
Distribution fee 108,543
Transfer agency fee 278,932
Compensation of directors 8,610
Compensation of officers 1,699
Custodian fees 69,506
Postage 50,092
Registration fees 90,758
Reports to shareholders 21,370
Audit fees 20,000
Administrative 3,743
Other 15,593
_____________________________________________________________________________________________________________
Total expenses 1,947,875
_____________________________________________________________________________________________________________
Investment income -- net 7,576,379
_____________________________________________________________________________________________________________
Realized and unrealized gain on investments and foreign currency -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions (including gain of $524,285
from foreign currency translations) (Note 3) 5,386,111
Net realized gain on financial futures contracts 898,978
Net realized gain on closed or expired currency option contracts written (Note 5) 440,052
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 6,725,141
Net change in unrealized appreciation or depreciation of investments 7,250,626
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 13,975,767
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $21,552,146
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Global Bond Fund
Year ended Oct. 31,
_____________________________________________________________________________________________________________
Operations and distributions 1993 1992
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 7,576,379 $ 4,324,429
Net realized gain on investments and foreign currency 6,725,141 3,140,991
Net change in unrealized appreciation or
depreciation of investments 7,250,626 1,464,923
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 21,552,146 8,930,343
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (6,528,494) (3,792,130)
Net realized gains on investments (1,816,626) (611,167)
Excess distribution of realized gain (Note 1) (3,667,505) (1,305,918)
_____________________________________________________________________________________________________________
Total distributions (12,012,625) (5,709,215)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
28,253,223 and 9,293,521 shares (Note 2) 172,510,247 54,322,469
Net asset value of 1,634,909 and 792,684 shares
issued in reinvestment of distributions 9,715,652 4,613,552
Payments for redemptions of
4,559,132 and 3,736,715 shares (27,552,609) (21,680,113)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
25,329,000 and 6,349,490 shares 154,673,290 37,255,908
_____________________________________________________________________________________________________________
Total increase in net assets 164,212,811 40,477,036
_____________________________________________________________________________________________________________
Net assets at beginning of year 90,961,137 50,484,101
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$1,860,201 and $805,327) $255,173,948 $90,961,137
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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PAGE 14
Notes to financial statements
IDS Global Bond Fund
___________________________________________________________________
1. Summary of significant accounting policies
IDS Global Bond Fund is a series of IDS Global Series, Inc. and is
registered under the Investment Company Act of 1940 (as amended) as
a non-diversified, open-end management investment company. IDS
Global Series, Inc. has 10 billion authorized shares of capital
stock which can be freely allocated among the separate series as
designated by the board of directors. Significant accounting
policies followed by the fund are summarized below:
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;
securities for which market quotations are not readily available,
are valued at fair value according to methods selected in good
faith by the board of directors. Determination of fair value
involves, among other things, reference to market indexes, matrixes
and data from independent brokers. Short-term securities 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.
Option transactions
In order to produce incremental earnings, protect gains, and
facilitate buying and selling of securities for investment
purposes, the fund may buy and sell put and call options and write
covered call options on portfolio securities and may write
cash-secured put options. The risk in writing a call option is
that the fund gives up the opportunity of profit if the market
price of the security increases. The risk in writing a put option
is that the fund 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 fund pays a premium whether or not the option
is exercised. The fund also has the additional risk of not being
able to enter into a closing transaction if a liquid secondary
market does not exist. The fund also may write over-the-counter
options where the completion of the obligation is dependent upon
the credit standing of the other party.
Option contracts are valued daily at the closing prices on their
primary exchanges and unrealized appreciation or depreciation is
recorded. The fund will realize a gain or loss upon expiration or
closing of the option transaction. When options on debt securities
or futures are exercised, the fund will realize a gain or loss.
When other options are 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.
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PAGE 15
Notes to financial statements
IDS Global Bond Fund
___________________________________________________________________
1. Summary of significant accounting policies
Futures transactions
In order to gain exposure to or protect itself from changes in the
market, the fund may buy and sell stock index or interest rate
futures contracts. Risks of entering into futures contracts and
related options include the possibility that there may be an
illiquid market and that a change in the value of the contract or
option may not correlate with changes in the value of the
underlying securities.
Upon entering into a futures contract, the fund is 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 fund 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 fund recognizes a realized gain or loss when the
contract is closed or expires.
Foreign currency translations and
forward foreign currency contracts
Securities and other assets and liabilities denominated in foreign
currencies are translated daily into U.S. dollars at the closing
rate of exchange. Foreign currency amounts related to the purchase
or sale of securities and income and expenses are translated at the
exchange rate on the transaction date. It is not practicable to
identify that portion of realized and unrealized gain (loss)
arising from changes in the exchange rates from the portion arising
from changes in the market value of investments.
The fund 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 fund and the
resulting unrealized appreciation or depreciation are determined
using foreign currency exchange rates from an independent pricing
service. The fund is subject to the credit risk that the other
party will not complete the obligations of the contract.
Federal taxes
Since the fund's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to shareholders, no
provision for income or excise taxes is required.
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PAGE 16
Notes to financial statements
IDS Global Bond Fund
___________________________________________________________________
1. Summary of significant accounting policies
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes primarily because
of the deferral of losses on certain futures contracts, the
recognition of certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred due to "wash
sale" transactions. 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. The effect on dividend distributions of certain
book-to-tax differences is presented as "excess distributions" in
the statement of changes in net assets.
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) were recorded by the fund.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, undistributed net investment
income has been increased by $6,989 resulting in a net
reclassification adjustment to decrease paid-in-capital by $6,989.
Dividends to shareholders
Dividends from net investment income, declared daily and paid each
calendar quarter, are reinvested in additional shares of the fund
at net asset value or payable in cash. Capital gains, when
available, are distributed along with the last income dividend of
the calendar year.
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. For U.S. dollar denominated bonds,
interest income includes level-yield amortization of premium and
discount. For foreign bonds, except for original issue discount,
the fund does not amortize premium and discount.
___________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991, the fund pays IDS
Financial Corporation (IDS) a fee for managing its investments,
recordkeeping and other specified services. The fee is a
percentage of the fund's average daily net assets consisting of a
group asset charge in reducing percentages from 0.46% to 0.32%
annually on the combined net assets of all non-money market funds
in the IDS MUTUAL FUND GROUP and an individual annual asset charge
of 0.46% of average daily net assets.
<PAGE>
PAGE 17
Notes to financial statements
IDS Global Bond Fund
___________________________________________________________________
2. Expenses and sales charges
The fund also pays IDS a distribution fee at an annual rate of $6
per shareholder account and a transfer agency fee at an annual rate
of $15.50 per shareholder account. The transfer agency fee is
reduced by earnings on monies pending shareholder redemptions.
IDS will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges by IDS Financial Services Inc. for distributing fund
shares were $4,555,945 for the year ended Oct. 31, 1993. The fund
also pays custodian fees to IDS Bank & Trust, an affiliate of IDS.
The fund has a retirement plan for its independent directors. Upon
retirement, directors receive monthly payments equal to one-half of
the retainer fee for as many months as they served as directors up
to 120 months. There are no death benefits. The plan is not funded
but the fund recognizes the cost of payments during the time the
directors serve on the board. The retirement plan expense amounted
to $3,035 for the year ended Oct. 31, 1993.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $216,121,655 and $109,498,938
respectively, for the year ended Oct. 31, 1993. Realized gains and
losses are determined on an identified cost basis.
Income from securities lending amounted to $659 for the year ended
Oct. 31, 1993. The risks to the fund of securities lending are
that the borrower may not provide additional collateral when
required or return the securities when due.
Brokerage commissions paid to brokers affiliated with IDS were
$5,769 for the year ended Oct. 31, 1993.
___________________________________________________________________
4. Interest rate futures contracts
At Oct. 31, 1993, investments in securities included securities
valued at $1,224,750 that were pledged as collateral to cover
initial margin deposits on 281 purchase contracts. The market
value of the open contracts at Oct, 31, 1993, was $31,900,561 with
a net unrealized gain of $536,696.
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PAGE 18
Notes to financial statements
IDS Global Bond Fund
___________________________________________________________________
5. Option contracts written
The number of contracts and premium amounts associated with option
contracts written is as follows:
<TABLE>
<CAPTION>
Year ended Oct. 31, 1993
_______________________________________________________
Puts Calls
Contracts Premium Contracts Premium
_____________________________________________________________________________
<S> <C> <C> <C> <C>
Balance Oct. 31, 1992 -- $ -- 40 $ 47,220
Opened 590 732,952 190 347,295
Closed (435) (548,724) (190) (337,795)
Expired (95) (101,773) (40) (56,720)
______________________________________________________________________________
Balance Oct. 31, 1993 60 $ 82,455 -- $ --
______________________________________________________________________________
</TABLE>
___________________________________________________________________
6. Forward foreign currency contracts
At Oct. 31, 1993, the fund had entered into five forward foreign
currency exchange contracts that obligate the fund to deliver
currencies at specified future dates. The unrealized depreciation
of $58,380 on these contracts is included in the accompanying
financial statements. The terms of the open contracts are as
follows:
<TABLE>
<CAPTION>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered Oct. 31, 1993 received Oct. 31, 1993
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Nov. 12, 1993 1,999,125 $ 1,999,125 16,000,000 $ 1,964,443
U.S. Dollar Swedish Krona
Nov. 18, 1993 1,992,308 1,992,308 15,800,000 1,938,389
U.S. Dollar Swedish Krona
Nov. 18, 1993 214,000,000 1,975,640 2,002,021 2,002,021
Japanese Yen U.S. Dollar
Nov. 24, 1993 262,500,000 2,423,648 2,425,054 2,425,054
Japanese Yen U.S. Dollar
Nov. 24, 1993 216,352,000 1,997,566 2,000,000 2,000,000
Japanese Yen U.S. Dollar
___________ ___________
$10,388,287 $10,329,907
</TABLE>
<PAGE>
PAGE 19
Notes to financial statements
IDS Global Bond Fund
___________________________________________________________________
7. Organizational costs
Organizational costs are being amortized over 60 months on a
straight-line basis. If any of the initial shares held by IDS are
redeemed during the amortization period, the redemption proceeds
will be reduced by a pro-rata portion of the unamortized balance.
___________________________________________________________________
8. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on page 5 of the prospectus.
<PAGE>
PAGE 20
<TABLE>
<CAPTION>
Investments in securities
IDS Global Bond Fund (Percentages represent value of
Oct. 30, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (74.1%)(b)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Argentina (0.7%)
Telecom Argentina
(U.S. Dollar) 8.375% 2000 $ 2,000,000 (e) $ 1,995,000
_____________________________________________________________________________________________________________________________
Australia (0.8%)
Government of Australia
(Australian Dollar) 7.50 2005 3,000,000 2,142,000
_____________________________________________________________________________________________________________________________
Austria (2.1%)
Republic of Austria
(Japanese Yen) Euro 5.25 1998 540,000,000 5,410,800
_____________________________________________________________________________________________________________________________
Brazil (0.6%)
Brazil IDU
(U.S. Dollar) Euro 8.75 2001 2,000,000 1,593,760
_____________________________________________________________________________________________________________________________
Canada (10.0%)
Ford Motor
(Canadian Dollar) Euro 10.25 1994 1,000,000 778,442
Government of Canada
(Canadian Dollar) 9.75 2021 4,200,000 3,994,854
10.50 2001 14,750,000 13,588,684
10.75 1998 6,700,000 5,969,699
Province of Quebec
(U.S. Dollar) 11.00 2015 800,000 1,047,000
______________
Total 25,378,679
_____________________________________________________________________________________________________________________________
Chile (0.2%)
Chile Tel
(U.S. Dollar) Cv 4.50 2003 350,000 434,000
_____________________________________________________________________________________________________________________________
France (1.1%)
Government of France
(French Franc) 8.50 2023 12,500,000 2,662,375
_____________________________________________________________________________________________________________________________
Germany (7.4%)
Federal Republic of Germany
(Deutsche Mark) 6.00 1997 15,000,000 9,123,450
6.375 1998 15,600,000 9,688,380
_______________
Total 18,811,830
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 21
<TABLE>
<CAPTION>
Investments in securities
IDS Global Bond Fund (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Indonesia (0.4%)
Indorayon
(U.S. Dollar) Sr Nts 9.125% 2000 $ 1,000,000 $ 1,007,500
_____________________________________________________________________________________________________________________________
Italy (1.2%)
Republic of Italy
(U.S. Dollar) 6.875 2023 3,000,000 2,973,750
_____________________________________________________________________________________________________________________________
Japan (11.2%)
Government of Japan
(Japanese Yen) 4.60 1998 825,000,000 8,192,250
4.90 2003 700,000,000 6,979,000
5.70 2013 600,000,000 6,264,000
Intl Amer Development Bank
(Japanese Yen) 5.75 1996 300,000,000 3,015,000
KFW Intl Finance
(Japanese Yen) 6.00 1999 400,000,000 4,152,000
____________
Total 28,602,250
_____________________________________________________________________________________________________________________________
Korea (0.5%)
Korea Telecom
(U.S. Dollar) 7.40 1999 1,000,000 1,078,750
_____________________________________________________________________________________________________________________________
Mexico (2.1%)
Cemex
(U.S. Dollar) Euro 8.875 1998 2,000,000 (e) 2,100,000
Mexican/United States Govt
(U.S. Dollar) Euro 6.25 2019 4,000,000 3,240,000
____________
Total 5,340,000
_____________________________________________________________________________________________________________________________
Norway (1.0%)
Kingdom of Norway
(Japanese Yen) Euro Non-dollar 5.375 1997 250,000,000 2,482,500
_____________________________________________________________________________________________________________________________
Sweden (1.5%)
Government of Sweden
(Swedish Krona) 11.00 1999 27,000,000 3,855,870
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 22
<TABLE>
<CAPTION>
Investments in securities
IDS Global Bond Fund (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
United Kingdom (9.2%)
United Kingdom Treasury
(British Pound) 8.00 % 2003 5,100,000 $ 8,195,751
9.00 1994 1,000,000 1,545,150
9.00 2000 8,200,000 13,753,368
_____________
Total 23,494,269
_____________________________________________________________________________________________________________________________
United States (24.1%)
AMR
(U.S. Dollar) 9.75 2021 500,000 577,500
10.00 2021 1,000,000 1,181,250
Barclays Capital
(U.S. Dollar) 9.75 2021 1,000,000 1,293,750
Chesapeake
(U.S. Dollar) 9.875 2003 1,000,000 1,211,250
Chrysler Financial
(U.S. Dollar) 9.00 1994 500,000 529,375
Coltec Inds
(U.S. Dollar) Sr Nts 9.75 1999 1,000,000 1,056,250
Commercial Credit
(U.S. Dollar) 5.90 2003 2,000,000 1,982,500
Corp Property Investors
(U.S. Dollar) 7.05 2003 2,000,000 (e) 2,070,000
Fairchild Inds
(U.S. Dollar) Sr Sec Nts 12.25 1999 1,000,000 1,041,250
Federal Paper Board
(U.S. Dollar) 10.00 2011 1,000,000 1,251,250
General Motors
(U.S. Dollar) 9.125 2001 2,000,000 2,310,000
Georgia-Pacific
(U.S. Dollar) Credit Sensitive Nts 9.85 1997 500,000 568,125
Golden West Financial
(U.S. Dollar) Sub Nts 10.25 2000 500,000 623,125
Kearny Real Estate LP
(U.S. Dollar) 6.55 2000 2,500,000 2,543,750
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 23
<TABLE>
<CAPTION>
Investments in securities
IDS Global Bond Fund (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (continued)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
United States (cont'd)
Mark IV Inds
(U.S. Dollar) 8.75 % 2003 $ 1,200,000 $ 1,233,000
PDV Amer
(U.S. Dollar) 7.875 2003 2,000,000 2,032,500
Questar Pipeline
(U.S. Dollar) 9.375 2021 1,000,000 1,233,750
Resolution Funding Corp
(U.S. Dollar) 7.50 2017 2,000,000 (c) 419,560
8.00 2016 3,259,000 (c) 729,168
Southern California Gas
(U.S. Dollar) 7.375 2023 900,000 933,750
Texas Utilities
(U.S. Dollar) 1st Mtge 9.75 2021 500,000 608,125
U.S. Treasury
(U.S. Dollar) 7.625 2022 15,000,000 17,792,549
8.00 2021 1,000,000 1,230,090
8.625 1997 3,000,000 3,418,470
8.875 2019 9,595,000 (d) 12,773,344
USX
(U.S. Dollar) 8.125 2023 1,000,000 950,000
______________
Total 61,593,681
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Total bonds
(Cost: $179,592,971) $ 188,857,014
_____________________________________________________________________________________________________________________________
Common Stocks (1.3%)(b)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Brazil Fund 26,700 503,962
Cambridge Shopping Center 55,000 676,289
Hanson 270,349 1,087,344
Royal Bank Canada 50,000 1,030,986
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $3,198,237) $ 3,298,581
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 24
<TABLE>
<CAPTION>
Investments in securities
IDS Global Bond Fund (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (24.2%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (1.6%)
Federal Home Loan Mtge Corp
Disc Note
11-18-93 3.04% $2,700,000 $ 2,695,682
Federal Natl Mtge Assn
Disc Note
11-01-93 3.06 1,400,000 1,399,763
_____________
Total 4,095,445
_____________________________________________________________________________________________________________________________
Commercial paper (21.8%)
Amgen
12-10-93 3.11 5,200,000 5,181,641
BBV Delaware
12-01-93 3.09 1,800,000 1,795,072
Ciesco LP
11-10-93 3.12 2,600,000 2,597,529
11-17-93 3.11 5,000,000 4,992,250
Corporate Receivables
11-22-93 3.11 4,800,000 4,790,493
12-03-93 3.10 2,300,000 2,293,288
Dillard Investment
11-16-93 3.09 1,900,000 1,897,237
Eiger Capital
11-29-93 3.11 1,300,000 (f) 1,296,642
Fleet Funding
11-30-93 3.13 4,100,000 (f) 4,089,020
12-02-93 3.12 2,663,000 2,655,408
Lincoln Natl
11-15-93 3.11 2,600,000 (f) 2,596,406
Natl Australia Funding
11-12-93 3.11 2,700,000 2,696,977
11-26-93 3.11 4,300,000 4,290,003
Pacific Energy Fuel
11-09-93 3.12 865,000 864,122
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 25
<TABLE>
<CAPTION>
Investments in securities
IDS Global Bond Fund (Percentages represent value of
Oct. 31, 1993 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (continued)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Commercial paper (cont'd)
Pioneer Hi-Bred Intl
12-03-93 3.11% $2,100,000 $ 2,093,852
Pitney Bowes Credit
11-02-93 3.11 600,000 599,845
12-03-93 3.09 2,600,000 2,592,437
Sandoz
11-18-93 3.09 2,600,000 2,595,773
Southwestern Bell Capital
11-02-93 3.10 1,700,000 (f) 1,699,561
USAA Capital
11-04-93 3.11 3,900,000 3,898,321
____________
Total 55,515,877
_____________________________________________________________________________________________________________________________
Letters of credit (0.8%)
First Natl Bank Chicago-
Commonwealth Fuel
11-05-93 3.16 900,000 899,527
NationsBank of North Carolina-
Comdisco
12-08-93 3.11 1,200,000 1,195,970
____________
Total 2,095,497
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $61,706,952) $ 61,706,819
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $244,498,160)(g) $253,862,414
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 26
Investments in securities
IDS Global Bond Fund
Oct. 31, 1993
_____________________________________________________________________________________________________________________________
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; principal amounts are denominated in the currency
indicated.
(c) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on
the date of acquisition.
(d) Partially pledged as initial deposit on the following open interest rate futures purchase contracts
(see Note 4 to the financial statements):
</TABLE>
<TABLE>
<CAPTION>
Foreign
Type of security par value
_________________________________________________________________________
<S> <C>
British gilt futures 3,750,000
German bundes futures 22,750,000
French futures 57,500,000
_________________________________________________________________________
(e) 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 of directors.
(f) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the
Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." This
security has been determined to be liquid under guidelines established by the board of directors.
(g) At Oct. 31, 1993, the cost of securities for federal income tax purposes was $244,474,954 and the aggregate gross
unrealized appreciation and depreciation based on that cost was:
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Unrealized appreciation $9,843,267
Unrealized depreciation (455,807)
__________________________________________________________________________________
Net unrealized appreciation $9,387,460
__________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 27
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conversation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Planned Investment Account
Invests in money market securities to provide maximum current
income consistent with liquidity and stability of principal of
principal, while serving as a base for systematic exchanges into
IDS fixed income and equity funds.
(icon of) stair steps
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
Income investments
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 Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
achieve high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to
provide high current income. Secondary objective is capital
growth.
(icon of) cornucopia
<PAGE>
PAGE 28
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 Strategy Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
(icon of) chess piece
IDS Selective Fund, Inc.
Invests in 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, Inc.
Invests primarily in securities issued or guaranteed as to
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) federal building
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and
notes to seek a high level of current income.
(icon of) chess piece
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund, Inc.
Invests primarily in medium- and lower-quality municipal bonds and
notes.
(icon of) shield with basket of apples enclosed
<PAGE>
PAGE 29
IDS State Tax-Exempt Funds
(California, Massachusetts, Michigan, Minnesota, New York, Ohio)
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 Tax-Exempt Bond Fund, Inc.
Invests mainly in bonds and notes of state or local government
units, with at least 75 percent 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 eagle head
Growth and income investments
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. Moderate risk.
IDS International Fund, Inc.
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The Fund may invest up to 20
percent of its assets in the U.S. market.
(icon of) three flags
IDS Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the
world that offer potential for superior growth. Holding may range
from small- to large-capitalization stocks, including those of
companies involve in areas of rapid economic growth.
(icon of) chess piece
IDS Managed Retirement Fund, Inc.
Invests in a combination of common stocks, fixed income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
<PAGE>
PAGE 30
IDS Equity Plus Fund, Inc.
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by IDS 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 Stock Fund, Inc.
Invests primarily in common stocks of blue chip U.S. companies
representing almost every major sector of the economy. Seeks
current income and growth of capital.
(icon of) building with columns
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) chess piece
IDS Utilities Income Fund, Inc.
Invests primarily in the stocks of public utility companies to
provide high current income and growth of income and capital with
reduced volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to provide high
current income and, secondarily to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a 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
<PAGE>
PAGE 31
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 Discovery Fund, Inc.
Invests in small and medium-sized, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Growth Fund, Inc.
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Strategy, Aggressive Equity 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 Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS New Dimensions Fund, Inc.
Invests primarily in domestic 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, Inc.
Invests primarily in undervalued common stocks. The Fund holds
stocks for the long-term with the goal of capital growth.
(icon of) shooting star
IDS Global Growth Fund
Invests in 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
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.<PAGE>
PAGE 32
IDS Precious Metals Fund, Inc.
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your IDS personal financial planner or writing to IDS Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440. Read it carefully
before you invest or send money.
<PAGE>
PAGE 33
Federal income tax information
IDS Global Bond Fund
___________________________________________________________________
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on a Form 1099-DIV, Dividends and Distributions,
last January. Dividends paid to you since the end of last year
will be reported to you on a tax statement sent next January.
Shareholders should consult a tax adviser on how to report
distributions for state and local purposes.
IDS Global Bond Fund
Fiscal year ended Oct. 31, 1993
Income distributions taxable as dividend income, 0.25% qualifying
for deduction by corporations.
Payable date Per share
Dec. 29, 1992 $0.2450
March 26, 1993 0.0672
June 25, 1993 0.0812
Sept. 24, 1993 0.0904
Total $0.4838
Capital gain distribution taxable as long-term capital gain.
Payable date Per share
Dec. 29, 1992 $0.0401
Total distributions $0.5239
The distribution of $0.2851 per share, payable Dec. 29, 1992,
consisted of $0.1795 derived from net investment income, $0.0655
from net short-term capital gains (a total of $0.2450 taxable as
dividend income) and $0.0401 from net long-term capital gains.
<PAGE>
PAGE 34
Quick telephone reference
IDS Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
Your IDS financial planner:
IDS Global Bond Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 35
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in blue strip at the top
of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
