PAGE
IDS
Global Bond Fund
1995 semiannual report
(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.
Distributed by
American Express
Financial Advisors Inc.
<PAGE>
PAGE
(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.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 19
Directors and officers 24
IDS mutual funds 25
<PAGE>
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To our shareholders
(Picture of: WIlliam R. Pearce)
William R. Pearce
President of the fund
(Picture of: Ray Goodner)
Ray Goodner
Portfolio manager
From the president
As I indicated in the fund's annual report, new agreements between the
fund and American Express Financial Corporation were approved by
shareholders in November 1994. The new agreements became effective
when the fund began offering multiple classes of shares on
March 20, 1995.
The advantage of offering more than a single class of shares is that
investors may choose how they wish to pay sales charges. These charges
compensate your American Express financial advisor (formerly called your
IDS planner), who is committed to providing you with outstanding services.
Adding new classes of mutual fund shares does make the presentation of
financial information in this report more complex. However, we will
continue our effort to make the reports easier to read and understand.
Meanwhile, your advisor is available to answer your questions.
William R. Pearce
<PAGE>
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From the portfolio manager
Positive bond markets and appreciating currencies in many foreign
countries combined to generate an excellent return for IDS Global Bond
Fund shareholders during the first six months of the fiscal year
(November 1994 through April 1995).
The three-prong investment potential of this fund was never more clear
than during the past period. Like any bond fund, IDS Global Bond offers
investors ongoing income from the interest on the bonds it holds, as
well as the possibility of capital appreciation should interest rates
decline. But because of its flexibility to invest in markets around the
world, this fund can also provide additional return generated by
appreciating currencies in foreign markets.
Currency counts
The currency factor played the most important role in our recent
performance. While many foreign bond markets in which we were invested
enjoyed rising bond prices, it was the currency appreciation that really
made the difference. The two outstanding examples were Japan and Germany
- - which, next to the U.S., constituted the fund's largest exposure.
In Germany, the market was up about 6.6%, but when the increase in value
of the German mark versus the U.S. dollar was included, the gain
approached 15% for U.S. investors. Japan proved to be even more
profitable, as that market's price gain of about 9% was boosted to
approximately 25% when the yen's gain against the dollar was figured
in. (As investors experienced in foreign markets know, when the dollar
declines against another currency, the value of an investment in that
currency rises.)
Why did the dollar lose so much ground against those currencies?
There were, and continue to be, two main reasons: high, ongoing
federal deficits in this country and trade imbalances with some
countries (we import more goods than we export), especially with Japan.
However, it isn't always a one-way street. During the period, the U.S.
dollar appreciated against the currencies of two other major trading
partners - Canada and Mexico, greatly so in the latter case.
Gains at home
The U.S. bond market also made a strong contribution to performance,
although dollar fluctuations naturally have no effect on returns for
investors based here. After being down for most of 1994 because of rising
interest rates, the U.S. market finally reached a point of stability last
November - a welcome relief. Then, remarkably, as fast as the market had
gone down in the preceding months, it almost immediately began turning up.
By the end of April, the market, led by U.S. Treasury bonds, had racked
up five straight months of strong gains.
We participated in this rally, too, as we kept a considerable portion of
the portfolio invested in long-maturing U.S. bonds. As the period
progressed, we reduced that exposure and moved more money into foreign
markets, particularly Japan, to take advantage of the appreciating
currencies overseas.
As we look toward the second half of the fiscal year, we continue to see
solid opportunities. The currency situation remains largely unfavorable
for the dollar (again, a positive for the fund), though we don't expect
to get a repeat of its latest decline against the mark and yen.
However, currency movements can be highly unpredictable, and we must
always be prepared for swings that may not work in our favor.
Latin America, led by Mexico, looks promising now that the financial
aid package for Mexico is in place. Here at home, the fundamentals for
the bond market appear positive, thanks mainly to moderating economic
growth that should lessen the likelihood of higher interest rates.
We have exposure to all these markets and many more, and we expect
this diversified approach to generate optimum fixed-income returns.
Ray Goodner
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Class A
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1995 $ 6.03
Oct. 31, 1994 $ 5.76
Increase $ 0.27
Distributions
Nov. 1, 1994 - April 30, 1995
From income $ 0.17
From capital gains $ -
Total distributions $ 0.17
Total return** 7.8%
Class B
March 20,1995 - April 30,1995
(All figures per share)
Net asset value (NAV)
April 30, 1995 $ 6.03
March 20, 1995* $ 5.76
Increase $ 0.27
Distributions
March 20, 1995* - April 30, 1995
From income $ 0.07
From capital gains $ -
Total distributions $ 0.07
Total return** 5.9%
Class Y
March 20,1995 - April 30,1995
(All figures per share)
Net asset value (NAV)
April 30, 1995 $ 6.03
March 20, 1995* $ 5.76
Increase $ 0.27
Distributions
March 20, 1995* - April 30, 1995
From income $ 0.07
From capital gains $ -
Total distributions $ 0.07
Total return** 5.9%
*Commencement of operations.
**The prospectus discusses the effects of the
sales charge on the various classes.
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IDS Global Bond Fund
Your fund's ten largest holdings
Picture of pie chart: The ten holdings listed here make up 44.79%
of the fund's net assets
______________________________________________________________________
Percent Value
(of fund's net assets) (as of April 30, 1995)
______________________________________________________________________
Government of Japan 9.10% $ 44,936,215
4.40% Bond 2004
U.K. Treasury 5.90 29,159,275
8% Bond 2003
Government of Canada 4.83 23,837,420
10.50% Bond 2001
Federal Republic of Germany 4.75 23,449,650
6.375% Bond 1998
Federal Republic of Germany 3.97 19,610,210
8.75% Bond 2001
Federal Republic of Germany 3.91 19,331,220
6% Bond 1997
U.K. Treasury 3.58 17,697,693
9% Bond 2000
Government of Italy 3.28 16,224,000
8.50% Bond 1999
U.S. Treasury 2.77 13,674,673
4.75% Bond 1998
U.S. Treasury 2.70 13,325,650
7.625% Bond 2022
Note: Certain foreign investment risks include: changes in currency
exchange rates, adverse political or economic order, and lack of similar
regulatory requirements followed by U.S. companies.
<PAGE>
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Financial statements
Statement of assets and liabilities
IDS Global Bond Fund
April 30, 1995
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $482,202,617) $485,354,273
Receivable for investment securities sold 45,380,676
Dividends and accrued interest receivable 12,197,938
Receivable for foreign currency contracts held, at value (Notes 1 and 6) 118,652,855
U.S. government securities held as collateral (Note 4) 13,579,337
_____________________________________________________________________________________________________________
Total assets 675,165,079
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 1,397,656
Dividends payable to shareholders 1,151,365
Payable for investment securities purchased 46,355,517
Payable upon return of securities loaned (Note 4) 13,579,337
Payable for foreign currency contracts held, at value (Notes 1 and 6) 118,552,781
Accrued investment management services fee 20,610
Accrued distribution fee and service fees 3,505
Accrued transfer agency fee 4,319
Accrued administrative services fee 1,565
Other accrued expenses 64,606
Open option contracts written, at value (premium received $143,750)(Note 5) 100,313
_____________________________________________________________________________________________________________
Total liabilities 181,231,574
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $493,933,505
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 819,249
Additional paid-in capital 488,083,141
Undistributed net investment income (Note 1) 2,955,827
Accumulated net realized loss (1,219,879)
Unrealized appreciation (Note 6) 3,295,167
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $493,933,505
_____________________________________________________________________________________________________________
Net asset applicable to outstanding shares: Class A $488,358,979
Class B $ 4,218,443
Class Y $ 1,356,083
Net asset value per share of outstanding capital stock: Class A shares 81,000,067 $ 6.03
Class B shares 699,880 $ 6.03
Class Y shares 224,931 $ 6.03
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
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Financial statements
Statement of operations
IDS Global Bond Fund
Six months ended April 30, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Dividends (net of foreign taxes withheld of $25,954) $ 124,746
Interest (net of foreign taxes withheld of $54,786) 16,023,853
_____________________________________________________________________________________________________________
Total income 16,148,599
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 1,863,909
Distribution fee - Class A 113,947
Transfer agency fee 371,869
Service fee 91,804
Administration services fee 30,310
Compensation of directors 4,056
Compensation of officers 2,509
Custodian fees 112,798
Postage 37,484
Registration fees 58,980
Reports to shareholders 36,860
Audit fees 10,750
Administrative 3,336
Other 11,074
_____________________________________________________________________________________________________________
Total expenses 2,749,686
_____________________________________________________________________________________________________________
Investment income -- net 13,398,913
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions (including gain of $22,597
from foreign currency transactions) (Note 3) 826,326
Net realized loss on financial futures contracts (649,185)
Net realized gain on closed or expired currency option contracts written (Note 5) 38,544
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 215,685
Net change in unrealized appreciation or depreciation 21,405,763
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 21,621,448
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $35,020,361
_____________________________________________________________________________________________________________
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
_____________________________________________________________________________________________________________
Operations and distributions April 30, 1995 Oct. 31, 1994
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income -- net $ 13,398,913 $ 22,065,406
Net realized gain (loss) on investments and foreign currency 215,685 (2,477,889)
Net change in unrealized appreciation or depreciation 21,405,763 (27,808,371)
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations 35,020,361 (8,220,854)
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (11,571,003) (19,649,029)
Class B (260) --
Class Y (1,281) --
Net realized gain
Class A (1,590,719) (3,556,158)
Excess distribution of realized gain (Note 1)
Class A (39,633) --
_____________________________________________________________________________________________________________
Total distributions (13,202,896) (23,205,187)
_____________________________________________________________________________________________________________
Capital share transactions (Note 7)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 70,167,552 332,640,161
Class B shares 4,154,168 --
Class Y shares 1,298,306 --
Reinvestment of distribution at net asset value
Class A shares 12,559,075 21,996,385
Class B shares 241 --
Class Y shares 1,280 --
Payments for redemptions
Class A shares (82,319,279) (112,115,501)
Class B shares (Note 2) (14,234) --
Class Y shares (21) --
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 5,847,088 242,521,045
_____________________________________________________________________________________________________________
Total increase in net assets 27,664,553 211,095,004
Net assets at beginning of period 466,268,952 255,173,948
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$2,955,827 and $1,129,458) $493,933,505 $466,268,952
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
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Notes to financial statements
IDS Global Bond Fund
(Unaudited as to April 30, 1995)
______________________________________________________________________________
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. The fund offers Class A, Class B and Class Y shares.
Class A shares are sold with a front-end sales charge. Class B shares,
which the fund began offering on March 20, 1995, may be subject to a
contingent deferred sales charge and such shares automatically convert
to Class A after eight years. Class Y shares, which the fund also began
offering on March 20, 1995, have no sales charge and are offered only
to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation and
other rights, the same terms and conditions, except that the level of
distribution fee transfer agency fee and service fee (class specific
expenses) differ among classes. Income, expenses (other than class
specific expenses) and realized and unrealized gains or losses on
investments are allocated to each class of shares based upon its
relative net assets. 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.
Options transactions
In order to produce incremental earnings, protect gains, and facilitate
buying and selling of securities for investment purposes, the fund may
buy or write options traded on any U.S or foreign exchange or in the
over-the-counter market where the completion of the obligation is
dependent upon the credit standing of the other party. The fund may also
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.
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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.
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 traded on any U.S. or foreign exchange. The fund also may
buy or write put and call contracts on these 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
foreign currency contracts
Securities and other assets and liabilities denominated in foreign
currencies are translated daily into U.S. dollars at the closing rate of
exchange. Foreign currency amounts related to the purchase or sale of
securities and income and expenses are translated at the exchange rate
on the transaction date. The effect of changes in foreign exchange
rates on realized and unrealized security gains or losses is reflected
as a component of such gains or losses. In the statement of operations,
net realized gains or losses from foreign currency transactions may
arise from sales of foreign currency, closed forward contracts,
exchange gains or losses realized between the trade date and
settlement dates on securities transactions, and other translation
gains or losses on dividend, interest income and foreign withholding
taxes.
<PAGE>
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.
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.
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.
<PAGE>
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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 a prior agreement that ended March 19, 1995, the fund paid
American Express Financial Corporation a fee for managing its investments,
recordkeeping and other specified services. The fee was 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.
Also under terms of the prior agreement, the fund paid American Express
Financial Corporation 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 was reduced by
earnings on monies pending shareholder redemptions.
Effective March 20, 1995, when the fund began offering multiple classes
of shares, the fund entered into agreements with American Express
Financial Corporation for managing its portfolio, providing
administrative services and serving as transfer agent as follows: Under
its Investment Management Services Agreement, American Express Financial
Corporation determines which securities will be purchased, held or sold.
The management fee is a percentage of the fund's average daily net
assets in reducing percentages from 0.77% to 0.067% annually. Under an
Administrative Services Agreement, the fund pays American Express
Financial Corporation for administration and accounting services at a
percentage of the fund's average daily net assets in reducing percentages
from 0.06% to 0.04% annually.
Under a separate Transfer Agency Agreement, American Express Financial
Corporation maintains shareholder accounts and records. The fund pays
American Express Financial Corporation an annual fee per shareholder
account for this service as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the fund entered into agreements with
American Express Financial Advisors Inc. for distribution and shareholder
servicing-related services as follows: Under the Distribution Agreement,
the fund pays a distribution fee at an annual rate of 0.75% of the fund's
average daily net assets attributable to Class B shares for distribution-
related services.
Under a Shareholder Service Agreement, the fund pays a fee for service
provided to shareholders by financial advisors and other servicing
agents. The fee is calculated at a rate of 0.175% of the fund's average
daily net assets attributable to Class A and Class B shares.
American Express Financial Corporation will assume and pay any expenses
(except taxes and brokerage commissions) that exceed the most restrictive
applicable state expense limitation.
Sales charges by American Express Financial Advisors Inc. for distributing
fund shares were $1,348,883 for Class A for the six months ended April 30,
1995. The fund also pays custodian fees to American Express Trust Company,
an affiliate of American Express Financial Corporation.
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 $1,169 for the six
months ended April 30, 1995.<PAGE>
PAGE
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $328,521,120 and $203,438,081,
respectively, for the six months ended April 30, 1995. Realized gains and
losses are determined on an identified cost basis.
______________________________________________________________________________
4. Lending of portfolio securities
At April 30, 1995, securities valued at $13,325,650 were on loan to
brokers. For collateral, the fund received U.S. government securities
valued at $13,579,337. Income from securities lending amounted to $12,007
for the six months ended April 30, 1995. 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.
______________________________________________________________________________
5. Option contracts written
The number of contracts and premium amounts associated
with option contracts written is as follows:
<TABLE>
<CAPTION>
Six months ended April 30, 1995
______________________________________________________
Puts Calls
Contracts Premium Contracts Premium
______________________________________________________________________________
<S> <C> <C> <C> <C>
Balance Oct. 31, 1994 100 $110,238 100 $121,800
Opened 200 308,375 425 704,750
Closed (300) (418,613) (350) (572,425)
Expired -- -- (50) (110,375)
______________________________________________________________________________
Balance April 30, 1995 -- $ -- 125 $143,750
______________________________________________________________________________
<PAGE>
______________________________________________________________________________
6. Foreign currency contracts
At April 30, 1995, the fund had entered into ten foreign currency
exchange contracts that obligate the fund to deliver currency at
specified future dates. The net unrealized appreciation of $100,074
on these contracts is included in the accompanying financial
statements. The terms of the open contracts are as follows:
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered April 30, 1995 received April 30, 1995
____________________________________________________________________________________________________
May 8, 1995 3,008,571 $ 3,008,571 258,000,000 $ 3,071,969
U.S. Dollar Japanese Yen
May 8, 1995 4,418,605 4,418,605 380,000,000 4,524,603
U.S. Dollar Japanese Yen
May 10, 1995 3,719,059 3,719,059 316,120,000 3,764,961
U.S. Dollar Japanese Yen
May 11, 1995 3,999,429 3,999,429 5,600,000 4,022,757
U.S. Dollar Singapore Dollar
May 15, 1995 45,220,674 45,220,674 3,798,988,821 45,199,153
U.S. Dollar Japanese Yen
May 15, 1995 712,588,800 8,478,152 8,482,190 8,482,190
Japanese Yen U.S. Dollar
May 15, 1995 3,089,856,400 36,762,122 36,779,626 36,779,626
Japanese Yen U.S. Dollar
May 22, 1995 5,034,586 5,034,586 7,060,000 5,078,662
U.S. Dollar Singapore Dollar
July 27, 1995 3,038,823 3,038,823 242,100,000 2,913,179
U.S. Dollar Japanese Yen
July 31, 1995 4,872,760 4,872,760 400,000,000 4,815,755
U.S. Dollar Japanese Yen
____________ ____________
$118,552,781 $118,652,855
/TABLE
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7. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
<TABLE>
<CAPTION>
________________________________________________________________________________________
Six months ended April 30, 1995 Year ended
10/31/94
Class A Class B* Class Y* Class A
________________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 12,324,357 702,388 224,715 55,715,517
Issued for reinvested
distributions 2,210,664 41 220 3,701,527
Redeemed (14,477,340) (2,549) (4) (19,204,423)
_______________________________________________________________________________________
Net increase 57,681 699,880 224,931 40,212,621
_______________________________________________________________________________________
*Commencement of operations was March 20, 1995.
_________________________________________________________________________________________
/TABLE
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<TABLE>
<CAPTION>
8. Financial highlights
The table below shows certain financial information for evaluating the fund's results.
Fiscal period ended Oct. 31,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990
Classes
A B Y
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $5.76 $5.76 $5.76 $6.27 $5.91 $5.58 $5.46 $5.22
beginning of period
Income from investment operations:
Net investment income .17 .07 .07 .36 .26 .33 .50 .40
Net gains (losses) .27 .27 .27 (.45) .62 .47 .12 .27
(both realized
and unrealized)
Total from investment .44 .34 .34 (.09) .88 .80 .62 .67
operations
Less distributions:
Dividends from net (.15) (.07) (.07) (.35) (.27) (.30) (.50) (.40)
investment income
Distributions from (.02) -- -- (.07) (.10) (.06) -- (.03)
realized gains
Excess distribution of
realized gains -- -- -- -- (.15) (.11) -- --
Total distributions (.17) (.07) (.07) (.42) (.52) (.47) (.50) (.43)
Net asset value, $6.03 $6.03 $6.03 $5.76 $6.27 $5.91 $5.58 $5.46
end of period
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
Classes
A B Y
Net assets, end of period $488 $4 $1 $466 $255 $91 $50 $28
(in millions)
Ratio of expenses to 1.23%+ 2.09%+ 1.09%+ 1.26% 1.31% 1.39% 1.34% 1.73%++
average daily net assets
Ratio of net income 5.98%+ 7.21%+ 4.01%+ 5.56% 5.11% 6.50% 7.15%10.60%++
to average daily net assets
Portfolio turnover rate 51% 51% 51% 64% 90% 160% 123% 130%
(excluding short-term
securities)
Total return*** 7.8%+++ 5.9% 5.9% (1.5%) 15.8% 14.8% 11.9% 13.3%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended April 30, 1995 for Class A and commencement of operations
March 20, 1995 for Class B and Y (Unaudited).
+Adjusted to an annual basis.
***Total return does not reflect payment of a sales charge.
++For the nine months ended July 31, 1990, American Express Financial Corporation
voluntarily reimbursed the fund for a portion of its expenses.
Had American Express Financial Corporation not done so, the ratio of expenses
and ratio of net investment income would have been 1.87% and 10.46%, respectively.
+++For the fiscal period ended April 30, 1995, the annualized total
return is 16.3%.
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Global Bond Fund (Percentages represent value of
April 30, 1995 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (88.2 %)(b)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Argentina (3.6%)
Argentina Euro
(U.S. Dollar) 6.50 % 2005 $12,000,000 (c) $ 7,132,500
Argentina Republic
(U.S. Dollar) 4.25 2023 20,500,000 8,968,750
Telecom Argentina
(U.S. Dollar) 8.375 2000 2,000,000 (d) 1,680,000
____________
Total 17,781,250
_____________________________________________________________________________________________________________________________
Australia (1.0%)
Government of Australia
(Australian Dollar) 7.50 2005 7,800,000 4,877,574
_____________________________________________________________________________________________________________________________
Austria (1.4%)
Republic of Austria Euro
(Japanese Yen) 5.25 1998 540,000,000 6,949,800
_____________________________________________________________________________________________________________________________
Brazil (2.2%)
Brazil C Bonds
(U.S. Dollar) 4.00 2014 4,845,000 2,089,406
Brazil DCB Bonds
(U.S. Dollar) 6.75 2012 18,000,000 9,000,000
______________
Total 11,089,406
_____________________________________________________________________________________________________________________________
Canada (6.2%)
Government of Canada
(Canadian Dollar) 10.50 2001 29,200,000 23,837,420
Hydro Quebec
(U.S. Dollar) 9.375 2030 4,000,000 4,432,800
Province of Quebec
(U.S. Dollar) 11.00 2015 800,000 934,168
Rogers Cable System
(Canadian Dollar) 9.65 2014 2,000,000 1,235,740
______________
Total 30,440,128
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
China (0.9%)
Guang Dong Province Enterprises
(U.S. Dollar) 8.75 2003 5,000,000 (d) 4,307,750
_____________________________________________________________________________________________________________________________
Colombia (0.7%)
Republic of Colombia
(U.S. Dollar) 7.25 2004 4,100,000 3,485,000
_____________________________________________________________________________________________________________________________
Denmark (2.5%)
Government of Denmark
(Danish Krone) 8.00 2003 25,200,000 4,481,568
9.00 1998 40,000,000 7,584,000
______________
Total 12,065,568
_____________________________________________________________________________________________________________________________
Finland (0.4%)
City of Helsinki
(U.S. Dollar) 7.90 2006 2,000,000 (d) 1,871,800
_____________________________________________________________________________________________________________________________
Germany (17.2%)
Federal Republic of Germany
(Deutsche Mark) 6.00 1997 26,500,000 19,331,220
6.00 2016 15,500,000 9,328,365
6.375 1998 32,200,000 23,449,650
7.50 2004 11,870,000 8,833,535
8.25 1997 6,000,000 4,569,420
8.75 2001 24,675,000 19,610,210
_______________
Total 85,122,400
_____________________________________________________________________________________________________________________________
Indonesia (0.8%)
Pt Indah Kiat Euro
(U.S. Dollar) 8.875 2000 2,500,000 2,117,375
Tjiwi Kimia
(U.S. Dollar) 13.25 2001 2,000,000 2,070,000
_______________
Total 4,187,375
_____________________________________________________________________________________________________________________________
Italy (6.3%)
Government of Italy
(Italian Lira) 8.50 1999 31,200,000,000 16,224,000
8.50 2004 21,700,000,000 9,765,000
Republic of Italy
(U.S. Dollar) 6.875 2023 6,000,000 4,911,300
__________
Total 30,900,300
______________________________________________________________________________________________________________________________
<PAGE>
PAGE
Japan (2.6%)
Euro Investment Bank
(Japanese Yen) 5.875 1999 380,000,000 5,152,800
Govt of Japan
(Japanese Yen) 4.40 2004 3,540,000,000 44,936,215
Japan Development Bank
(Japanese Yen) 6.50 2001 550,000,000 7,799,000
____________
Total 57,888,015
_____________________________________________________________________________________________________________________________
Korea (1.1%)
Korea Electric Power
(U.S. Dollar) 7.75 2013 6,100,000 5,614,196
_____________________________________________________________________________________________________________________________
Mexico (2.7%)
BNCE
(U.S. Dollar) 7.25 2004 1,000,000 677,500
Mexican Cetes Treasury Bill
(Mexican Peso) Zero Coupon 68.307 1995 20,000,000 (e) 2,662,700
42.29 1996 17,281,150 (e) 1,942,972
Mexican Tesobonos Treasury Bill
(Mexican Peso) Zero Coupon 40.637 1995 2,300,000 (e) 2,190,336
Petroleos Mexicanos
(U.S. Dollar) 8.625 2023 3,000,000 1,830,000
United Mexican States
(U.S. Dollar) 8.50 2002 4,000,000 2,960,000
United Mexican States Euro
(U.S. Dollar) 6.25 2019 2,500,000 1,307,813
____________
Total 13,571,321
______________________________________________________________________________________________________________________________
Netherlands (0.2%)
Aegon Euro
(U.S. Dollar) 4.75 2004 600,000 695,250
_____________________________________________________________________________________________________________________________
New Zealand (1.1%)
Government of New Zealand
(New Zealand Dollar) 6.50 2000 8,685,000 5,500,037
_____________________________________________________________________________________________________________________________
Philippines (0.3%)
Philippines Long Distance Telephone
(U.S. Dollar) 10.625 2004 1,500,000 1,477,500
______________________________________________________________________________________________________________________________
Poland (1.0%)
Poland Discount
(U.S. Dollar) 6.812 2024 7,000,000 4,847,500
______________________________________________________________________________________________________________________________
Sweden (2.9%)
Government of Sweden
(Swedish Krona) 10.25 2003 42,000,000 5,533,920
11.00 1999 61,400,000 8,535,214
___________
Total 14,069,134
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
United Kingdom (10.5%)
Abbey Natl
(U.S. Dollar) 8.20 2004 5,000,000 5,161,850
United Kingdom Treasury
(British Pound) 8.00 2003 18,650,000 29,159,275
9.00 2000 10,700,000 17,697,693
_____________
Total 52,018,818
_____________________________________________________________________________________________________________________________
United States (13.5%)
AMR
(U.S. Dollar) 9.75 2021 500,000 524,380
10.00 2021 1,000,000 1,073,200
Chesapeake
(U.S. Dollar) 9.875 2003 1,000,000 1,118,430
Fairchild Inds
(U.S. Dollar) Sr Sec Nts 12.25 1999 1,000,000 998,750
General Motors
(U.S. Dollar) 9.125 2001 2,000,000 2,145,020
Georgia-Pacific
(U.S. Dollar) Credit Sensitive Nts 9.85 1997 500,000 523,860
Government Natl Mtge Assn
(U.S. Dollar) 8.00 2024 4,981,634 4,987,861
Kearny Real Estate LP
(U.S. Dollar) 6.55 2000 2,500,000 2,490,625
PDV Amer
(U.S. Dollar) 7.875 2003 3,500,000 2,992,780
Phillips Pertoleum
(U.S. Dollar) 7.92 2023 3,115,000 2,891,841
Questar Pipeline
(U.S. Dollar) 9.375 2021 1,000,000 1,098,950
Resolution Funding Corp
(U.S. Dollar) Zero Coupon 7.50 2017 2,000,000 (e) 371,180
8.00 2016 3,259,000 (e) 653,038
Southern California Gas
(U.S. Dollar) 7.375 2023 900,000 821,700
Tele-Communications
(U.S. Dollar) 7.875 2013 3,000,000 2,601,390
Texas Utilities
(U.S. Dollar) 1st Mtge 9.75 2021 500,000 549,855
U.S. Treasury
(U.S. Dollar) 4.75 1998 14,535,000 13,674,673
7.50 2016 4,000,000 4,025,360
7.625 2022 13,000,000 (f) 13,325,650
8.875 2019 8,595,000 (g) 9,927,397
____________
Total 66,795,940
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $432,423,238) $435,556,062
_____________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Common stocks (0.9%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Hanson Trust 583,005 (b) $ 2,215,419
Woolworth's LTD 1,067,322 (b) 2,320,358
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $4,516,945) $ 4,535,777
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (9.2%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (1.5%)
Federal Home Loan Mtge Corp
Disc Notes
05-15-95 5.90% $3,400,000 $ 3,391,130
05-22-95 5.90 2,500,000 2,490,624
Federal Natl Mtge Assn
Disc Note
05-12-95 5.91 1,300,000 1,297,240
_____________
Total 7,178,994
_____________________________________________________________________________________________________________________________
Commercial paper (7.7%)
AIG Funding
05-18-95 5.98 4,900,000 4,884,613
Amer General
05-22-95 6.00 4,000,000 (h) 3,984,743
Aon
05-24-95 5.98 800,000 796,694
AT&T
05-03-95 6.03 900,000 899,400
AT&T Capital
05-23-95 6.02 800,000 796,816
Cafco
06-05-95 6.00 900,000 894,487
Cargill
05-24-95 5.98 2,500,000 (h) 2,489,670
Ciesco LP
06-01-95 5.98 4,600,000 (h) 4,574,911
<PAGE>
PAGE
Kredietbank North
Amer Finance
05-22-95 6.00 3,000,000 2,988,557
Lincoln Natl
05-30-95 5.99 5,600,000 (h) 5,571,260
Mobil Australia
Finance
05-23-95 6.00 3,437,000 (h) 3,423,321
Penney (JC)
05-15-95 6.00 700,000 698,143
St. Paul Companies
05-19-95 5.99 4,000,000 (h) 3,986,755
USL Capital
05-16-95 6.01 2,100,000 2,094,070
____________
Total 38,083,440
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $45,262,434) $ 45,262,434
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $482,202,617)(i) $485,354,273
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated
in the currency indicated.
(c) Interest rate varies, rate shown is the effective rate on April 30, 1995.
(d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities
Act of 1933, as amended. This security has been determined to be liquid under guidelines established
by the board of directors.
(e) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on
the date of acquisition.
(f) Security is partially or fully on loan. See Note 4 to the financial statements.
(g) At April 30, 1995, securities valued at $3,465,060 were held to cover open currency call options
written as follows:
Issuer Number Exercise Expiration Value(a)
of contracts price date
____________________________________________________________________________________
June Deutsche Mark Futures 100 $72 May 1995 $90,000
June Deutsche Mark Futures 25 73 May 1995 10,313
(h) 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.
(i) At April 30, 1995, the cost of securities for federal income tax purposes was approximately $436,999,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that
cost was:
Unrealized appreciation $ 21,570,000
Unrealized depreciation (18,151,000)
_____________________________________________________________________________
Net unrealized appreciation $ 3,419,000
_____________________________________________________________________________
</TABLE>
<PAGE>
PAGE
Directors and officers
Directors and officers of the fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested directors who are officers and/or employees of American
Express Financial Corporation
William H. Dudley
Executive vice president, American Express Financial Corporation.
David R. Hubers
President and chief executive officer, American Express Financial
Corporation.
John R. Thomas
Senior vice president, American Express Financial Corporation.
_____________________________________________________________________
Officers who also are officers and or/employees of American Express
Financial Corporation
Peter J. Anderson
Vice president of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Other officer
Leslie L. Ogg
Vice president, general counsel and secretary of all funds in the
IDS MUTUAL FUND GROUP .
<PAGE>
PAGE
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation 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 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
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
seek 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 seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia<PAGE>
PAGE
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 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 primarily in 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) federal building
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
Invests primarily in 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<PAGE>
PAGE
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 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 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
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 Managed Retirement Fund
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
IDS Equity Select Fund
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 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 Stock Fund
Invests in common stocks 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) electrical cord
IDS Diversified Equity Income Fund
Invests 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) 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
Growth investments
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
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 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 Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
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 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
IDS New Dimensions Fund
Invests primarily in 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
<PAGE>
PAGE
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
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. 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 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>
PAGE
Quick telephone reference
American Express 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
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone 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
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Global Bond Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE
IDS GLOBAL GROWTH FUND
1995 semiannual report
(icon of) world
The goal of IDS Global Growth Fund, a part of IDS Global Series, Inc.
is long-term growth of capital. The fund invests primarily in common
stocks and securities convertible into common stocks of companies
throughout the world.
Distributed by
American Express
Financial Advisors Inc.<PAGE>
PAGE
(icon of) world
It's a big world after all
No one needs to be told that the world is changing rapidly. For example,
some years ago U.S. stocks accounted for about two-thirds of the total
value of stocks worldwide. Today, that figure is down to about one-third,
as many foreign stock markets have enjoyed explosive growth. Global Growth
Fund seeks to take advantage of that trend by investing in companies
throughout the world, not just the United States. For the most part,
these are fast-growing foreign companies involved in essential
businesses such as infrastructure creation, finance and environmental
clean-up. As they prosper, Global Growth Fund offers investors the
potential to prosper along with them.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 19
Directors and officers 24
IDS mutual funds 25
<PAGE>
PAGE
To our shareholders
(Picture of) William Pearce
William R. Pearce
President of the fund
From the president
As I indicated in the fund's annual report, new agreements between the
fund and American Express Financial Corporation were approved by share-
holders in November 1994. The new agreements became effective when the
fund began offering multiple classes of shares on March 20, 1995.
The advantage of offering more than a single class of shares is that
investors may choose how they wish to pay sales charges. These charges
compensate your American Express financial advisor (formerly called your
IDS planner), who is committed to providing you with outstanding services.
Adding new classes of mutual fund shares does make the presentation of
financial information in this report more complex. However, we will
continue our effort to make the reports easier to read and understand.
Meanwhile, your advisor is available to answer your questions.
William R. Pearce<PAGE>
PAGE
(Picture of) Edward F. Korff
Portfolio manager
From the portfolio manager
Foreign stock markets, expecially those in developing nations, are known
for their volatility. That fact was reinforced during the past six months
as several markets experienced severe downturns that combined to make for
perhaps the most difficult period for U.S. investors overseas in the past
several years. IDS Global Growth Fund held up better than did most of the
markets in which it was invested, but it nevertheless incurred a loss for
the November 1994 through April 1995 period.
After generating extraordinarily strong returns in 1993, most foreign
markets struggled throughout 1994. Still, this fund managed to stay in
positive territory until the start of the current fiscal year last
November, when fears of higher interest rates began driving down stocks
in many smaller markets. On the heels of that, Mexico devalued the peso
in December, whch sent Mexican stocks into a tailspin that soon spread
to other Latin American markets and even to emerging markets in Asia.
In a matter of weeks, some markets fell anywhere from 10% to 40% measured
in U.S. dollars-the currency of record for U.S. investors.
Diversification helps
While it was impossible to avoid the considerable impact of these events,
the fund's decline was tempered by our well-diversified portfolio. A prime
example is our substantial exposure to European markets, particularly
Germany and France. These markets performed relatively well, and we also
benefited from appreciating currencies (the German mark and French
franc), which enhanced returns to U.S.-based investors. In other major
markets, our holdings in Japan gave us lackluster results, but again a
strengthening currency (the yen) helped out. (When other currencies
strengthen against the dollar, the value of overseas investments increase
for U.S. investors.)
It wasn't until March, though, that the smaller markets were able to
right themselves. True to their nature and buoyed by improving currency
situations, they began moving forward with nearly as much vigor as they
previously retreated. By that time, the U.S. market, to which we had
substantially increased our exposure, was also enjoying a strong rally.
The result was a gain by our portfolio of nearly 10% during the final
two months of the period.
On firmer ground
At this writing (May), it appears that the global investing environment
remains gerally positive, certainly better than last year at this time.
The most favorable factors include reasonably good inflation outlooks
around the world, which should tend to hold down interest rates;
moderately expanding economies in most countries; and attractively low
prices on stocks of many solid companies.
We're also encouraged by the fact that, although some of them lost ground
during the past winter, the stocks in our portfolio generally
outperformed their respective markets. This helps confirm our belief
that we continue to find stocks with above-average long-term return
potential. Although we can expect volatility due to always-unpredictable
events, we expect our long-term investment strategy to pay off for the
fund and its shareholders in the months and years ahead.
Edward F. Korff<PAGE>
PAGE
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
_____________________________
April 30, 1995 $ 6.25
_____________________________
Oct. 31, 1994 $ 6.96
_____________________________
Decrease $(0.71)
_____________________________
Distributions
Nov. 1, 1994 - April 30, 1995
_____________________________
From income $ 0.05
____________________________
From capital gains $ 0.05
____________________________
Total distributions $ 0.10
____________________________
Total return** $(8.7%)
____________________________
Class B
March 20, 1995 -
April 30, 1995
(All figures per share)
Net asset value (NAV)
____________________________
April 30, 1995 $ 6.25
____________________________
March 20, 1995* $ 5.87
____________________________
Increase $ 0.38
____________________________
Distributions
March 20, 1995 - April 30, 1995
____________________________
From income $ --
____________________________
From capital gains $ --
____________________________
Total distributions $ --
____________________________
Total return** $ 6.5%
____________________________
<PAGE>
PAGE
Class Y
March 20, 1995 -
April 30, 1995
(All figures per share)
Net asset value (NAV)
____________________________
April 30, 1995 $ 6.25
____________________________
March 20, 1995* $ 5.87
____________________________
Increase $ 0.38
____________________________
Distributions
March 20, 1995* - April 30, 1995
____________________________
From income $ --
____________________________
From capital gains $ --
____________________________
Total distributions $ --
____________________________
Total return** $ 6.5%***
____________________________
*Commencement of operations.
**The prospectus discusses the effect
of the sales charges on the various
classes.
***The total return for the short period
of operations may not be indicative
of annual results.
<PAGE>
PAGE
<TABLE>
<CAPTION>
IDS Global Growth Fund
Your fund's ten largest holdings
Percent Value
(of fund's net assets) (as of April 30, 1995)
<S> <C> <C>
Renong (Malaysia) 2.27% $15,187,500
2.50% Cv Bond 2005
Engaged in the engineering, construction and operation of
major infrastruction projects in Malaysia.
Hornbach (Germany) 2.23 14,973,675
The most rapidly growing "do-it-yourself" retailer in Germany.
Douglas Holdings (Germany) 2.14 14,351,640
Specialty retailer.
Buderus (Germany) 2.01 13,468,175
Engaged in the manufacture of metal products.
Castorama Dubois (France) 2.00 13,374,620
A fast growing "do-it-yourself" retailer in
France (currently expanding into Italy).
AVA (Germany) 1.96 13,125,630
Engaged in retail sales through shopping center, supermarkets,
discount department stores and many other specialty stores.
Air Liquide (France) 1.91 12,836,320
One of the world's largest producers of industrial gases.
Friedrich Grohe (Germany) 1.80 12,079,217
Largest manufacturer of faucets and fixtures in Europe.
Bankgesellshchaft Berlin (Germany) 1.72 11,502,950
Dominant mortage bank in Berlin area.
Veba (Germany) 1.67 11,163,990
Conglomerate with interests in energy, chemicals
and telecommunications.
(Pie chart)
The ten holdings listed here make up 19.71% of the fund's net assets
Note: Certain foreign investment risks include: changes
in currency exchange rates, adverse political or economic
order, and lack of similar regulatory requirements
followed by U.S. companies.
</TABLE>
<PAGE>
PAGE
Financial statements
Statement of assets and liabilities
IDS Global Growth Fund
April 30, 1995
<TABLE>
<CAPTION>
______________________________________________________________________________________________________________
Assets
______________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated issuers (identified cost $691,735,558) $690,995,0312
Investments in securities of affiliated issuer (identified cost $2,820,478) 2,725,312
Dividends and accrued interest receivable 2,271,050
Receivable for investment securities sold 498,458
Receivable for foreign currency contracts held, at value (Notes 1 and 4) 3,958,864
U.S. government securities held as collateral (Note 5) 16,284,284
_____________________________________________________________________________________________________________
Total assets 716,733,000
_____________________________________________________________________________________________________________
Liabilities
____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 664,599
Payable for investment securities purchased 3,929,333
Payable for forward foreign currency contracts held, at value (Notes 1 and 4) 3,980,933
Payable upon return of securities loaned (Note 5) 36,561,999
Accrued investment management services fee 28,882
Accrued distribution and service fees 5,859
Accrued transfer agency fee 9,151
Accrued administrative services fee 2,062
Other accrued expenses 169,518
_____________________________________________________________________________________________________________
Total liabilities 45,352,336
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $671,380,664
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- $.01 par value; (Note 1) $ 1,073,718
Additional paid-in capital 669,037,221
Undistributed net investment income 2,279,913
Accumulated net realized loss (Notes 1 and 8) (248,727)
Unrealized depreciation (Notes 4 and 7) (761,461)
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $671,380,664
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $647,754,314
Class B $ 3,392,545
Class Y $ 20,233,805
Net asset value per share of outstanding capital stock: Class A shares 103,593,539 $ 6.25
Class B shares 542,945 $ 6.25
Class Y shares 3,235,354 $ 6.25
_____________________________________________________________________________________________________________
See accompanying notes to financial statements. <PAGE>
PAGE
Statement of operations
IDS Global Growth Fund
Six months ended April 30, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Dividends (net of foreign taxes withheld of $36,232) $ 3,034,804
Interest 4,198,124
_____________________________________________________________________________________________________________
Total income 7,232,928
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 2,618,341
Distribution fee 244,780
Transfer agency fee 787,249
Service fee 113,355
Administrative services fee 39,695
Compensation of directors 3,396
Compensation of officers 5,482
Custodian fees 290,366
Postage 80,275
Registration fees 101,013
Reports to shareholders 60,063
Audit fees 10,000
Administrative 4,130
Other 12,679
_____________________________________________________________________________________________________________
Total expenses 4,370,824
_____________________________________________________________________________________________________________
Investment income -- net 2,862,104
_____________________________________________________________________________________________________________
Realized and unrealized loss -- net
_____________________________________________________________________________________________________________
Net realized loss on security and foreign currency transactions
(including gain of $15,796 from foreign currency transactions)(Note 3) (232,848)
Net change in unrealized appreciation or depreciation (61,660,190)
_____________________________________________________________________________________________________________
Net loss on investments and foreign currency (61,893,038)
_____________________________________________________________________________________________________________
Net decrease in net assets resulting from operations $(59,030,934)
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Global Growth Fund
_____________________________________________________________________________________________________________
Operations and distributions April 30, 1995 Oct. 31, 1994
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income--net $ 2,862,104 $ 4,023,830
Net realized gain (loss) on investments and foreign currency (232,848) 5,188,698
Net change in unrealized appreciation or depreciation (61,660,190) 33,656,723
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations (59,030,934) 42,869,251
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (4,532,369) (1,094,030)
Net realized gain
Class A (5,265,856) (3,909,791)
Excess distribution of realized gain (Note 1)
Class A (15,796) --
_____________________________________________________________________________________________________________
Total distributions (9,814,021) (5,003,821)
_____________________________________________________________________________________________________________
Capital share transactions (Note 6)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 149,534,004 487,713,822
Class B shares 3,294,214 --
Class Y shares 20,246,977 --
Reinvestment of distributions at net asset value
Class A shares 9,751,488 4,980,642
Payments for redemptions
Class A shares (111,345,131) (104,574,827)
Class B shares (Note 2) (7,510) --
Class Y shares (1,227,454) --
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 70,246,588 388,119,637
_____________________________________________________________________________________________________________
Total increase in net assets 1,401,633 425,985,067
Net assets at beginning of period 669,979,031 243,993,964
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income
of $2,279,913 and $3,950,178) $671,380,664 $669,979,031
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
Notes to financial statements
IDS Global Growth Fund
(Unaudited as to April 30, 1995)
______________________________________________________________________________
1. Summary of significant accounting policies
IDS Global Growth Fund is a series of IDS Global Series, Inc. and is
registered under the Investment Company Act of 1940 (as amended) as a
diversified, open-end management investment company. IDS Global Series, Inc.
has 10 billion authorized shares of capital stock that can be freely allocated
among the separate series as designated by the board of directors. The fund
offers Class A, Class B and Class Y shares. Class A shares are sold with a
front-end sales charge. Class B shares, which the fund began offering on March
20, 1995, may be subject to a contingent deferred sales charge and such shares
automatically convert to Class A after eight years. Class Y shares, which the
fund also began offering on March 20, 1995, have no sales charge and are
offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation and other
rights, and the same terms and conditions, except that the level of
distribution fee, transfer agency fee and service fee (class specific
expenses) differ among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
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.
Options transactions
In order to produce incremental earnings, protect gains, and facilitate buying
and selling of securities for investment purposes, the fund may buy or write
options traded on any U.S. or foreign exchange or in the over-the-counter
market where the completion of the obligation is dependent upon the credit
standing of the other party. The fund also 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.
<PAGE>
PAGE
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 an option is exercised, the proceeds on sales for a written
call option, the purchase cost for a written put option or the cost of a
security for a purchased put or call option is adjusted by the amount of
premium received or paid.
Futures transactions
In order to gain exposure to or protect itself from changes in the market, the
fund may buy and sell stock index futures contracts traded on any U.S. or
foreign exchange. The fund also may buy or write put and call options on these
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
foreign currency contracts
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars at the closing rate of exchange.
Foreign currency amounts related to the purchase or sale of securities and
income and expenses are translated at the exchange rate on the transaction
date. The effect of changes in foreign exchange rates on realized and
unrealized security gains or losses is reflected as a component of such gains
or losses. In the statement of operations, net realized gains or losses from
foreign currency transactions may arise from sales of foreign currency, closed
forward contracts, exchange gains or losses realized between the trade date
and settlement dates on securities transactions, other translation gains or
losses on dividends, interest income and foreign withholding taxes.
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.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of the deferral of<PAGE>
PAGE
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.
Dividends to shareholders
An annual dividend declared and paid by the end of the calendar year from net
investment income is reinvested in additional shares of the fund at net asset
value or payable in cash. Capital gains, when available, are distributed along
with the income dividend.
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. Expenses and sales charges
Under terms of a prior agreement that ended March 19, 1995, the fund paid
American Express Financial Corporation a fee for managing its investments,
recordkeeping and other specified services. The fee was 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.
Also under terms of the prior agreement, the fund paid American Express
Financial Corporation a distribution fee at an annual rate of $6 per
shareholder account and a transfer agency fee at an annual rate of $15 per
shareholder account. The transfer agency fee was reduced by earnings on monies
pending shareholder redemptions.
Effective March 20, 1995, when the fund began offering multiple classes of
shares, the fund entered into agreements with American Express Financial
Corporation for managing its portfolio, providing administrative services and
serving as transfer agent as follows: Under its Investment Management Services
Agreement, American Express Financial Corporation determines which securities
will be purchased, held or sold. The management fee is a percentage of the
fund's average daily net assets in reducing percentages from 0.8% to 0.675%
annually. Under an Administrative Services Agreement, the fund pays American
Express Financial Corporation for administration and accounting services at a
percentage of the fund's average daily net assets in reducing percentages from
0.06% to 0.035% annually.
Under a separate Transfer Agency Agreement, American Express Financial
Corporation maintains shareholder accounts and records. The fund pays American
Express Financial Corporation an annual fee per shareholder account for this
service as follows:<PAGE>
PAGE
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the fund entered into agreements with American
Express Financial Advisors Inc. for distribution and shareholder servicing-
related services as follows: Under the Distribution Agreement, the fund pays a
distribution fee at an annual rate of 0.75% of the fund's average daily net
assets attributable to Class B shares for distribution-related services.
Under a Shareholder Service Agreement, the fund pays a fee for service
provided to shareholders by financial advisors and other servicing agents. The
fee is calculated at a rate of 0.175% of the fund's average daily net assets
attributable to Class A and Class B shares.
American Express Financial Corporation will assume and pay any expenses
(except taxes and brokerage commissions) that exceed the most restrictive
applicable state limitation.
Sales charges by American Express Financial Advisors Inc. for distributing
fund shares were $2,256,864 for Class A and $25 for Class B for the six months
ended April 30, 1995. The fund also pays custodian fees to American Express
Trust Company, an affiliate of American Express Financial Corporation.
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 $1,507 for the six months ended April 30, 1995.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $163,008,937 and $96,085,401, respectively, for the
six months ended April 30, 1995. Realized gains and losses are determined on
an identified cost basis.
Brokerage commissions paid to brokers affiliated with American Express
Financial Corporation was $75,130 for the six months ended April 30, 1995.
<PAGE>
PAGE
4. Foreign currency contracts
At April 30, 1995, the fund had entered into seven foreign currency exchange
contracts that obligate the fund to deliver currency at specified future
dates. The net unrealized depreciation of $22,069 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 April 30, 1995 received April 30, 1995
____________________________________________________________________________________________________
<S> <C> <C> <C> <C>
May 3, 1995 1,469,591 $1,469,591 2,029,050 $1,463,328
U.S. Dollar Deutsche Mark
May 3, 1995 1,057,160 1,057,160 5,128,600 1,041,657
U.S. Dollar French Franc
May 5, 1995 687,930 496,127 497,458 497,458
Deutsche Mark U.S. Dollar
May 5, 1995 829,554 829,554 1,147,181 827,334
U.S. Dollar Deutsche Mark
May 31, 1995 4,076 4,076 6,970,866 4,146
U.S. Dollar Italian Lira
May 31, 1995 40,899 40,899 69,708,657 41,456
U.S. Dollar Italian Lira
May 31, 1995 83,526 83,526 140,380,195 83,485
U.S. Dollar Italian Lira
__________ __________
$3,980,933 $3,958,864
</TABLE>
______________________________________________________________________________
<PAGE>
PAGE
5. Lending of portfolio securities
At April 30, 1995, securities valued at $34,243,314 were on loan to brokers.
For collateral, the fund received $20,277,715 in cash and U.S. government
securities valued at $16,284,284. Income from securities lending amounted to
$89,643 for the six months ended April 30, 1995. 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.
______________________________________________________________________________
6. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
Six months ended April 30, 1995 Year ended
10/31/94
Class A Class B* Class Y* Class A
______________________________________________________________________________
Sold 24,172,493 543,847 3,441,106 72,265,905
Issued for reinvested
distributions 1,583,805 -- -- 741,509
Redeemed (18,460,216) (902) (205,752) (15,415,895)
______________________________________________________________________________
Net increase 7,296,082 542,945 3,235,354 57,591,519
______________________________________________________________________________
*Commencement of operations was March 20, 1995.
______________________________________________________________________________
7. Stock index futures contracts
Investments in securities at April 30, 1995, included securities valued at
$12,150,000 that were pledged as collateral to cover initial margin deposits
on 382 open purchase contracts. The market value of the open contracts at
April 30, 1995, was $85,950 with a net unrealized gain of $96,300.
______________________________________________________________________________
8. Capital loss carryover
For federal income tax purposes, the fund has a capital loss carryover of
approximately $341,000 at April 30, 1995, that will expire in 2003 if not
offset by subsequent capital gains.<PAGE>
PAGE
<TABLE>
<CAPTION>
9. Financial highlights
The table below shows certain important financial
information for evaluating the fund's results.
Fiscal period ended Oct. 31,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990***
Classes
A B Y
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $6.96 $5.87 $5.87 $6.30 $4.92 $5.03 $4.67 $5.00
beginning of period
Income from investment operations:
Net investment income .02 .01 .01 .04 .02 .04 .08 .04
Net gains (losses) (.63) .37 .37 .73 1.43 (.11) .36 (.37)
(both realized and unrealized)
Total from investment (.61) .38 .38 .77 1.45 (.07) .44 (.33)
operations
Less distributions:
Dividends from net (.05) -- -- (.02) (.03) (.04) (.08) --
investment income
Distributions from (.05) -- -- (.09) (.03) -- -- --
realized gains
Excess distribution -- -- -- -- (.01) -- -- --
of realized gains
Total distributions (.10) -- -- (.11) (.07) (.04) (.08) --
Net asset value, $6.25 $6.25 $6.25 $6.96 $6.30 $4.92 $5.03 $4.67
end of period
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990***
Classes
A B Y
Net assets, end of period $648 $3 $20 $670 $244 $69 $38 $21
(in millions)
Ratio of expenses to 1.40%+ 2.14%+ 1.23%+ 1.38% 1.51% 1.72% 1.70% .81%
average daily net assets
Ratio of net income .91%+ 1.68%+ 2.58%+ .85% .80% 1.16% 1.66% 2.99%+
to average daily net assets
Portfolio turnover rate 18% 18% 18% 26% 27% 41% 33% 20%
(excluding short-term
securities)
Total return++ (8.7%)+++ 6.5% 6.5% 12.1% 29.9% (1.5%) 9.8% (6.7%)+++
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended April 30, 1995, for Class A and commencement of operations
March 20, 1995, for Class B and Y (Unaudited).
***Commencement of operations. Period from May 29, 1990 to Oct. 31, 1990.
PAGE
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
+++For the fiscal periods ended Oct. 31, 1990 and April 30, 1995, the annualized total returns are
(16.1%) and (16.7%), respectively.
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Global Growth Fund (Percentages represent value of
April 30, 1995 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (74.9%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Argentina (5.5%)
Banks and savings & loans (0.8%)
Banco Frances ADR 300,000 $ 5,512,500
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.8%)
Baesa ADR 200,000 5,500,000
_____________________________________________________________________________________________________________________________
Building materials & construction (0.9%)
IRSA 262,500 (b) 6,168,750
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (2.1%)
Commercial Del Plata 2,000,000 (c) 4,400,000
Comp Naviera Perez ADR 1,180,000 9,676,000
____________
Total 14,076,000
_____________________________________________________________________________________________________________________________
Utilities-electric (0.9%)
Capex GDR 400,000 (c) 5,826,000
_____________________________________________________________________________________________________________________________
Canada (2.8%)
Energy (2.6%)
Renaissance Energy 14,300 (b,c) 323,446
Renaissance Energy 385,700 (c) 8,723,994
Sceptre 1,100,000 (c) 7,990,070
___________
Total 17,037,510
_____________________________________________________________________________________________________________________________
Utilities-gas (0.2%)
Archer Resources 300,000 (c) 1,324,020
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities. <PAGE>
PAGE
Chile (2.6%)
Banks and savings & loans (0.9%)
Banco O'Higgins 325,000 (d) 5,931,250
_____________________________________________________________________________________________________________________________
Financial services (0.5%)
GT Chile Growth Euro 100,000 3,350,000
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.2%)
Madeco ADR 275,000 8,009,375
_____________________________________________________________________________________________________________________________
France (12.1%)
Chemicals (1.9%)
Air Liquide 80,000 12,836,320
_____________________________________________________________________________________________________________________________
Communications equipment (1.5%)
Alcatel Cable 125,000 9,662,750
_____________________________________________________________________________________________________________________________
Computers & office equipment (1.6%)
Sligos 125,000 10,790,000
_____________________________________________________________________________________________________________________________
Energy equipment & services (1.2%)
Coflexip 275,000 (c) 8,297,266
_____________________________________________________________________________________________________________________________
Food (0.8%)
IDIA 206,802 5,586,342
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.7%)
CNIM 101,591 4,601,260
_____________________________________________________________________________________________________________________________
Industrial transportation (1.2%)
SAGA 152,000 8,181,096
_____________________________________________________________________________________________________________________________
Retail (2.0%)
Castorama Dubois 80,897 13,374,620
_____________________________________________________________________________________________________________________________
Utilities-electric (1.2%)
Lyonnaise Des Eaux & De L'Eclairage 80,000 7,942,240
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Germany (12.2%)
Banks and savings & loans (1.7%)
Bankgesellshchaft Berlin 50,000 11,502,950
_____________________________________________________________________________________________________________________________
Building materials & construction (0.9%)
Weru 10,000 6,126,490
_____________________________________________________________________________________________________________________________
Industrial equipment & services (3.5%)
Buderus 25,000 13,468,175
Jungheinrich 45,000 9,898,290
____________
Total 23,366,465
_____________________________________________________________________________________________________________________________
Retail (4.4%)
AVA 35,000 13,125,630
Douglas Holdings 40,000 14,351,640
Moebel Walther 5,000 2,483,118
____________
Total 29,960,388
_____________________________________________________________________________________________________________________________
Utilities-electric (1.7%)
Veba 30,000 11,163,990
_____________________________________________________________________________________________________________________________
Utilities-gas (--%)
Henderson Investment 600,000 33,600
_____________________________________________________________________________________________________________________________
Hong Kong (5.5%)
Building materials & construction (0.5%)
Henderson Investment 4,508,000 3,200,680
_____________________________________________________________________________________________________________________________
Financial services (1.2%)
First Pacific 10,128,824 8,305,636
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (2.2%)
Hutchison Whampoa 2,500,000 10,850,000
Shun Tak Enterprise 7,000,000 4,249,000
____________
Total 15,099,000
_____________________________________________________________________________________________________________________________
Utilities-telephone (1.6%)
Hong Kong Telecom 5,396,200 (c,d) 10,560,363
_____________________________________________________________________________________________________________________________
India (1.3%)
Miscellaneous
Reliance Inds Euro GDR 525,000 (b) 8,465,625
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Indonesia (3.5%)
Food (1.4%)
PT Indofood Sukses Makmur 2,700,000 (c) 9,549,900
_____________________________________________________________________________________________________________________________
Chemicals (1.0%)
PT Tri Polyta ADR 300,000 (c) 6,450,000
_____________________________________________________________________________________________________________________________
Real estate (1.1%)
PT Jaya Real Properties 3,000,000 7,389,000
_____________________________________________________________________________________________________________________________
Italy (1.1%)
Furniture & appliances (1.1%)
Natuzzi ADR 200,000 7,475,000
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (--%)
Sasib S.P.A. 46,000 193,522
_____________________________________________________________________________________________________________________________
Japan (4.9%)
Electronics (1.4%)
Alpine Electronics 450,000 (d) 6,103,350
Chudenko 101,850 (c) 3,611,092
____________
Total 9,714,442
_____________________________________________________________________________________________________________________________
Furniture & appliances (1.5%)
Sony 200,000 10,089,200
_____________________________________________________________________________________________________________________________
Retail (2.0%)
Canon Sales 200,000 5,282,400
York Benimaru 200,000 (d) 7,900,000
____________
Total 13,182,400
_____________________________________________________________________________________________________________________________
Mexico (3.3%)
Banks and savings & loans (0.6%)
Grupo Finance Banamex 1,450,000 2,422,660
Grupo Financiero Banorte 975,000 (c) 1,270,718
____________
Total 3,693,378
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.2%)
Formento Economico 750,000 1,631,550
_____________________________________________________________________________________________________________________________
Building materials & construction (1.1%)
Bufete Inds ADR 400,000 4,500,000
Grupo Mexicano de Desarrollo 600,000 (c) 3,075,000
____________
Total 7,575,000
_____________________________________________________________________________________________________________________________
Metals (0.6%)
Grupo Simec ADR 400,000 (c) 4,000,000
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.8%)
Grupo Carso ADR 500,000 (c) 5,346,700
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Netherlands (3.8%)
Building materials & construction (2.6%)
IHC Caland 250,000 6,827,250
Volker Stevin 177,400 10,740,328
_____________
Total 17,567,578
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.2%)
Boskalis 572,000 (c,d) 7,810,088
_____________________________________________________________________________________________________________________________
Peru (0.4%)
Banks and savings & loans
Banco Wiese ADR 309,288 (d) 2,783,592
_____________________________________________________________________________________________________________________________
Phillipines (0.4%)
Multi-industry conglomerates
Universal Robina 5,000,000 2,780,000
_____________________________________________________________________________________________________________________________
Singapore/Malaysia (8.1%)
Banks and savings & loans (3.9%)
AMMB Holdings 1,000,000 (c) 9,872,000
Commerce Asset 1,250,000 5,461,250
Development Bank of Singapore 500,000 (c) 5,346,000
United Overseas Bank 519,375 5,404,097
____________
Total 26,083,347
_____________________________________________________________________________________________________________________________
Electronics (1.3%)
Technology Resource Cl A 3,500,000 (c) 8,921,500
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.8%)
Resorts World 1,000,000 5,259,000
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.2%)
Keppel 1,000,000 8,109,000
_____________________________________________________________________________________________________________________________
Paper & packaging (0.9%)
Asia Pulp & Paper 517,000 (c) 5,880,875
_____________________________________________________________________________________________________________________________<PAGE>
PAGE
Sweden (0.4%)
Retail
Lindex (AB) 192,000 (c) 2,693,952
_____________________________________________________________________________________________________________________________
Switzerland (3.3%)
Banks and savings & loans (1.2%)
Swiss Bank 25,000 (c) 8,207,425
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.4%)
Sulzer Gebruder 15,000 9,012,930
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.7%)
BBC Brown Boveri 5,000 4,924,455
_____________________________________________________________________________________________________________________________
United Kingdom (0.9%)
Electronics
Electrocomponents 700,000 6,035,400
_____________________________________________________________________________________________________________________________
United States (2.8%)
Building materials & construction (0.6%)
Foamex Intl 500,000 (c) 4,062,500
_____________________________________________________________________________________________________________________________
Communications equipment (0.4%)
Geotek Communications 300,000 (c) 2,737,500
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.9%)
Calgon Carbon 500,000 (i) 6,125,000
_____________________________________________________________________________________________________________________________
Industrial transportation (0.9%)
Fritz 100,000 (c,i) 6,025,000
_____________________________________________________________________________________________________________________________
Total common stocks of unaffiliated issuers
(Cost: $525,427,723) $503,101,720
_____________________________________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Bonds (5.3%)
_____________________________________________________________________________________________________________________________
Issuer and Principal Value(a)
coupon rate Amount
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Malaysia (2.3%)
Renong
(U.S. Dollar)
2.50% Cv 2005 $15,000,000 (b) $ 15,187,500
_____________________________________________________________________________________________________________________________
Mexico (1.2%)
Banco Nacional de Mexico
(U.S. Dollar)
7% Cv 1999 5,000,000 (b) 3,350,000
Mexican Cetes
(Mexican Peso)
Zero Coupon
13.94% Treasury Bill 1995 30,710,040 (g) 4,937,775
____________
Total 8,287,775
_____________________________________________________________________________________________________________________________
South Africa (1.0%)
Liberty Life Inds Euro
(U.S. Dollar)
6.50% 2004 6,000,000 (b,d) 6,930,000
_____________________________________________________________________________________________________________________________
Spain (0.8%)
Banco de Galicia
(U.S. Dollar)
7% Cv 2002 7,500,000 5,250,000
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $33,011,980) $ 35,655,275
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
_____________________________________________________________________________________________________________________________
Preferred stocks & other (6.7%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Argentina (1.2%)
Cointel
7% 160,000 (h) $ 8,040,000
_____________________________________________________________________________________________________________________________
Germany (5.5%)
Friedrich Grohe 36,650 12,079,217
Hornbach 12,500 14,973,675
SAP 10,000 9,880,280
_____________
Total 36,933,172
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $26,027,972) $ 44,973,172
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (16.0%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (1.0%)
Federal Home Loan Mtge Corp Disc Notes
05-15-95 5.89% $3,600,000 $ 3,590,624
05-18-95 5.90 3,000,000 2,990,690
____________
Total 6,581,314
_____________________________________________________________________________________________________________________________
Commercial paper (15.0%)
AIG Funding
05-18-95 5.98 1,300,000 1,295,918
05-31-95 6.03 2,100,000 2,088,837
Amer General
05-22-95 6.00 5,300,000 (e) 5,279,785
05-26-95 6.00 4,400,000 (e) 4,380,299
AT&T Capital
05-23-95 6.02 2,500,000 2,490,050
BBV Finance
05-08-95 6.01 4,200,000 4,193,721
Cargill
05-26-95 5.98 2,700,000 2,687,951
05-26-95 5.99 3,100,000 3,086,166
Cargill Financial Markets
05-24-95 5.98 5,000,000 (e) 4,979,340
Commerzbank U.S. Finance
05-03-95 6.03 5,000,000 4,996,667
06-01-95 5.99 2,600,000 2,585,795<PAGE>
PAGE
Deutsche Bank Finance
05-22-95 5.98 1,400,000 1,394,678
Dun & Bradstreet
06-01-95 6.15 800,000 794,322
Goldman Sachs
05-11-95 6.04 4,400,000 4,391,200
MetLife Funding
05-12-95 6.07 1,500,000 1,496,399
Natl Bank Detroit Canada
05-05-95 6.06 2,300,000 2,297,688
PACCAR Financial
05-02-95 6.01 4,000,000 3,998,007
Penney (JC) Funding
05-15-95 6.00 1,500,000 1,496,020
05-30-95 5.99 3,600,000 3,581,555
Pitney Bowes Credit
06-02-95 5.99 3,500,000 3,480,332
Reed Elsevier
05-16-95 6.01 5,500,000 (e) 5,484,494
Rohm & Haas Finance
05-22-95 6.00 2,300,000 2,291,227
St. Paul Companies
05-08-95 6.04 1,800,000 (e) 1,797,300
Sandoz
05-09-95 6.11 3,000,000 2,994,325
Siemens
05-12-95 6.00 3,800,000 3,791,808
Southwestern Bell Capital
05-04-95 6.05 2,300,000 2,298,077
05-23-95 6.06 2,800,000 (e) 2,788,009
Toyota Motor Credit
05-10-95 6.00 3,500,000 3,493,615
05-25-95 6.00 5,200,000 5,177,617
USAA Capital
05-19-95 6.01 3,200,000 3,189,387
USL Capital
05-15-95 6.03 6,400,000 6,382,962
____________
Total 100,683,551
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $107,267,883) $107,264,865
_____________________________________________________________________________________________________________________________
Total investments in securities of unaffiliated issuers
(Cost: $691,735,558) $690,995,032
_____________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in securities of affiliated issuer (f)
_____________________________________________________________________________________________________________________________
Common stock (0.4%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
United States
Chemicals
GNI Group 427,500 (c) $ 2,725,312
_____________________________________________________________________________________________________________________________
Total investments in securities of affiliated issuer
(Cost: $2,820,478) $ 2,725,312
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $694,556,036)(j) $693,720,344
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
______________________________________________________________________________________________________________________________
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. For debt securities, principal amounts are denominated in the currency indicated.
(b) 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.
(c) Presently non-income producing.
(d) Security is partially or fully on loan. See Note 5 to the financial statements.
(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 of directors.
(f) Investments representing 5% or more of the outstanding voting securities of the issuer.
(g) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition.
(h) PRIDES - Preferred Redeemed Increased Dividend Equity Securities are structured as convertible preferred securities issued
by a company. Investors receive an enhanced yield but based upon a specific formula, potential appreciation is limited.
PRIDES pay dividends, have voting rights, are noncallable for three years and upon maturity, convert into shares of common
stock.
(i) Pledged as initial deposit on the following open stock index futures purchase contracts (see Note 7 to the
financial statements):
Type of security Contracts
______________________________________________________________
Nikkei 225 Stock Index, June 1995 382
______________________________________________________________
(j) At April 30, 1995, the cost of securities for federal income tax purposes was approximately $694,104,000 and the
approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $72,485,000
Unrealized depreciation (72,869,000)
____________________________________________________________________________________________
Net unrealized depreciation $ (384,000)
____________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
IDS Global Growth Fund
Directors and officers of the fund
_____________________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
______________________________________________________________________________
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer,
The Valspar Corporation.
________________________________________________________________________
Interested directors who are officers and/or employees of
American Express Financial Corporation
William H. Dudley
Executive vice president, American Express Financial Corporation.
David R. Hubers
president and chief executive officer, American Express Financial
Corporation.
John R. Thomas
Senior vice president, American Express Financial Corporation.
________________________________________________________________________<PAGE>
PAGE
Officers who also are officers and/or employees of American Express
Financial Corporation
Peter J. Anderson
Vice president of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
_________________________________________________________________________
Other officer
Leslie L. Ogg
Vice president, general counsel and secretary of all funds in
the IDS MUTUAL FUND GROUP.<PAGE>
PAGE
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation 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 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
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
seek 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 seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia<PAGE>
PAGE
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 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 primarily in 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) federal building
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
Invests primarily in 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<PAGE>
PAGE
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 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 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
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 Managed Retirement Fund
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
IDS Equity Select Fund
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 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 Stock Fund
Invests in common stocks 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) chess piece
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) electrical cord
IDS Diversified Equity Income Fund
Invests 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) 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
Growth investments
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
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 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 Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
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 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
IDS New Dimensions Fund
Invests primarily in 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
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
<PAGE>
PAGE
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. 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
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>
PAGE
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangement
National/Minnesota:
800-437-3133
Mpls./St. Paul area:
671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone phone only), including current
fund prices and performance, account values and recent account
transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Global Growth Fund
IDS Tower 10
Minneapolis, MN 55440-0010
