<PAGE>
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IDS
Global Bond
Fund
1994 annual report
(prospectus enclosed)
(icon of) globe
The goal of IDS Global Bond Fund, a part of IDS Global Series,
Inc., is a high total return through income and growth of capital.
(This annual report includes a prospectus that describes in detail
the fund's objective, investment policies, risks, sales charges,
fees and other matters of interest. Please read the prospectus
carefully before you invest or send money.)
Distributed by
IDS
An American Express Company
AMERICAN
EXPRESS
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(icon of) globe
A bounty of bonds
In today's global economy, investment opportunities don't stop at
the water's edge. While bonds issued by the U.S. government and
corporations once made up almost all of the bond market, today more
than half of the world's debt securities are issued from outside
the United States. This means expanded opportunity for investors.
Global Bond Fund's aim is to take advantage of opportunities in
bond markets at any time and in any place, providing investors with
greater portfolio diversification.
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Contents
(Icon of) One book inside of another and their both being opened
togther.
The purpose of this annual report is to tell investors how the fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the fund in detail.
1994 annual report
From the president 4
From the portfolio manager 4
Ten largest holdings 6
Making the most of your fund 7
Long-term performance 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 23
IDS mutual funds 28
Federal income tax information 31
1994 prospectus
The fund in brief
Goal 3p
Types of fund investments 3p
Manager and distributor 3p
Portfolio manager 3p
Sales charge and fund expenses
Sales charge 4p
Operating expenses 4p
Performance
Financial highlights 5p
Total returns 6p
Yield 7p
Key terms 8p
Investment policies and risks
Facts about investments and their risks 9p
Fund structure 14p
Valuing assets 15p
How to buy, exchange or sell shares
How to buy shares 16p
How to exchange shares 18p
How to sell shares 18p
Reductions of the sales charge 22p
Waivers of the sales charge 24p
Special shareholder services
Services 25p
Quick telephone reference 25p
Distributions and taxes
Dividend and capital gain distributions 26p
Reinvestments 27p
Taxes 28p
How the fund is organized
Shares 31p
Voting rights 31p
Shareholder meetings 32p
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Directors and officers 32p
Investment manager and transfer agent 34p
Distributor 35p
About IDS
General information 37p
Appendix
Description of corporate bond ratings 38p
To our shareholders
(Photo of) William R. Pearce
President of the fund
(Photo of) Ray Goodner
Portfolio manager
From the president
All of the funds in the ids mutual fund group held shareholder
meetings on Nov. 9, 1994. The meetings, which were well-attended,
approved all of the proposals advanced by management. Among the
proposals were:
o The election of directors and the selection of KPMG
Peat Marwick LLP as independent auditors for each of
the funds in the group.
o A new investment management agreement that will become
effective for each fund when it begins offering
multiple classes of shares, now planned to occur in
early March, 1995.
o A change in investment policy that will permit the fund
to adopt a master/feeder structure if and when the
board of each fund determines that it is in the best
interest of shareholders.
o And, finally, a change in the rules with respect to the
number of "fundamental investment polices" that allows
the board to modify them should they deem appropriate.
No other business was presented at the meeting, which was concluded
by a report to shareholders from the IDS Investment Department.
Thanks to all of you for your effort in reviewing the proxy
material and voting your proxies.
William R. Pearce
From the portfolio manager
The positive environment that bonds enjoyed for several years
reversed during the past fiscal year, resulting in a downturn in
bond markets worldwide. But while this reduced IDS Global Bond
Fund's net asset value, it did not materially affect its regular
dividend payments to shareholders. As a result, on a total return
basis, there was only a small decline for the 12 months.
The primary influence on bond prices and, thus, on bond markets, is
the direction of long-term interest rates. Falling interest rates
boost bond prices, while rising rates depress them. Long-term
interest rates began rising in the United States in October 1993,
reflecting investors' concern that the strengthening economy would <PAGE>
PAGE 5
ignite inflation. (Interest rates usually move in tandem with
inflation expectations.) Fortunately, at that point the rate rise
came to a temporary halt, and the fund, after losing some ground in
November, was able to sustain a moderate advance in December and
January.
Rate rise takes hold
The first sign of a major interest-rate increase surfaced in Europe
shortly after the start of 1994. That was followed in early
February by the Federal Reserve's decision to begin raising short-
term interest rates in the U.S. to head off a potential rise in the
rate of inflation. The Fed's action set in motion a trend of higher
interest rates that continued through the rest of the fiscal year.
The greatest impact, however, was felt during February and March.
The U.S. bond market was among the most severely affected, but it
had plenty of company around the world, with the United Kingdom,
continental Europe, Canada and the emerging markets of Latin
America all experiencing sharply declining bond prices.
The market that held up best was Japan, where bonds were supported
by appreciation in the yen, the local currency. Appreciating
foreign currencies enhance returns for U.S.-based investors, and
the strength of the yen as well as other currencies helped mitigate
the erosion in the bond markets themselves.
Defensive measures
Also to the fund's benefit, we reduced the average maturity of the
portfolio's securities and added investments in currency-forward
contracts. This had a positive effect on the fund's net asset
value. Although the potential reward is more long-term in nature,
we also took advantage of market declines to add attractive bonds
at bargain prices in several emerging markets.
As difficult as the past period was at times, we find it
encouraging that the last several months were better than the
previous ones. That suggests to us that the worst probably has
passed for worldwide bond markets. Should that prove true, it does
not, however, preclude ongoing market volatility and, perhaps,
additional declines.
Of course, much of the fund's performance also depends on foreign
exchange movements. In recent years, the U.S. dollar has generally
weakened, which has benefitted fund performance. While the dollar
may be poised to rise in value against some currencies, that could
well be offset by weakness against others, particularly in Asian
countries and other "dollar bloc currencies" including Canada,
Australia and New Zealand. The fund's flexibility to shift
investments across global bond markets allows us to take advantage
of such opportunities. We continue to position the portfolio for
such an environment while we hold to our positive long-term outlook
for global bond investing.
Ray Goodner
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12-month performance
(All figures per share)
Net asset value (NAV)
Oct. 31, 1994 $ 5.76
Oct. 31, 1993 $ 6.27
Decrease $(0.51)
Distributions
Nov. 1, 1993 - Oct. 31, 1994
From income $ 0.40
From capital gains $ 0.02
Total distributions $ 0.42
Total return* (1.5%)
* If you purchased shares in the fund during this period,
your return also would have been affected by the sales
charge, as described in the prospectus.
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<TABLE><CAPTION>
IDS Global Bond Fund
Your fund's ten largest holdings
(Pie chart) The ten holdings listed here
make up 38.85% of the funds net assets.
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets) (as of Oct. 31, 1994)
____________________________________________________________________________________
<S> <C> <C>
Government of Canada 5.94% $27,713,128
10.50% Bond 2001
Government of Australia 4.85 22,615,362
7.50% Bond 2005
Federal Republic of Germany 4.49 20,947,388
6.375% Bond 1998
Government of Japan 4.44 20,704,950
4.10% Bond 2004
Federal Republic of Germany 3.74 17,447,335
6% Bond 1997
Federal Republic of Germany 3.74 17,429,186
8.75% Bond 2001
U.K. Treasury 3.14 14,621,606
8% Bond 2003
Government of Italy 2.94 13,688,000
8.50% Bond 1999
U.K. Treasury 2.92 13,589,696
9% Bond 2000
U.S. Treasury 2.65 12,374,179
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.
</TABLE>
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Making the most of your fund
Average annual total return
(as of Oct. 31, 1994)
1 year 5 years Since 3/20/89
- -6.37% +9.53% +9.70%
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures reflect the deduction of the maximum 5% sales charge. This
was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.
Build your assets systematically
To keep your assets growing steadily, one of the best ways to use
the fund is by dollar-cost averaging -- a time-tested strategy that
can make market fluctuations work for you. To dollar-cost average,
simply invest a fixed amount of money regularly. You'll
automatically buy more shares when the fund's share price is low,
fewer shares when it is high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 16 6.25
Mar 100 9 11.11
Apr 100 5 20.00
May 100 7 14.29
June 100 10 10.00
July 100 15 6.67
Aug 100 20 5.00
Sept 100 17 5.88
Oct 100 12 8.33
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low
(arrow in table pointing to September) and fewer shares when the
per share market price is high.
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
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PAGE 9
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold
by the fund exceed losses
o you receive income when the fund's stock dividends, interest
and short-term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
Your fund's long-term performance
How your $10,000 has grown in IDS Global Bond Fund
$16,790
Global Bond
Fund
SBH Global
Govt. Bond
Composite Index
$9,500
4/1/89 '89 '90 '91 '92 '93 '94
Assumes: o Holding period from 4/1/89 to 10/31/94. o Returns do
not reflect taxes payable on distributions. o Also see
"Performance" in the fund's current prospectus. o Reinvestment of
all income and capital gain distributions for the fund, with a
value of $5,864.
Salomon Brother Global Government Bond Composite Index is a
representative list of government bonds of 17 countries throughout
the world. The index is a general measure of government bond
performance. Performance is expressed in the U.S. dollar as well
as the currencies of governments making up the index. The bonds
included in the index may not be in Global Bond Fund.
On the chart above you can see how the fund's total return compared
to a widely cited performance index, Salomon Brothers Global
Government Bond Composite Index. In comparing Global Bond Fund to
the index, you should take account of the fact that the fund's
performance reflects the maximum sales charge of 5%, while no such
charges are reflected in the performance of the index. If you were
actually to buy either individual bonds or bond mutual funds, any
sales charges that you pay would reduce your total return as well.
Average annual total return
(as of Oct. 31, 1994)
1 year 5 years Since 3/20/89
- -6.37% +9.53% +9.70%
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PAGE 10
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Average annual total return figures reflect the deduction of the
maximum 5% sales charge. This was a period of widely fluctuating
security prices. Past performance is no guarantee of future
results.
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Independent auditors' report
___________________________________________________________________
The board of directors and shareholders
IDS Global Series, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS Global Bond Fund (a series of IDS Global Series, Inc.) as of
October 31, 1994, and the related statement of operations for the
year then ended and the statements of changes in net assets for
each of the years in the two-year period ended October 31, 1994,
and the financial highlights for each of the years in the five-year
period ended October 31, 1994, and for the period from March 20,
1989 (commencement of operations), to October 31, 1989. These
financial statements and the financial highlights are the
responsibility of fund management. Our responsibility is to
express an opinion on these financial statements and the financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and
sold but not received or delivered, and securities on loan, we
request confirmations from brokers, and where replies are not
received, we carry out other appropriate auditing procedures. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Global Bond Fund at October 31, 1994, and the results of its
operations for the year then ended and the changes in its net
assets for each of the years in the two-year period ended October
31, 1994, and the financial highlights for the periods stated in
the first paragraph above, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
December 2, 1994
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<TABLE><CAPTION>
Financial statements
Statement of assets and liabilities
IDS Global Bond Fund
Oct. 31, 1994
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $483,229,999) $464,862,579
Receivable for investment securities sold 884,294
Dividends and accrued interest receivable 12,052,891
Receivable for foreign currency contracts held, at value (Notes 1 and 6) 56,534,730
U.S. government securities held as collateral (Note 4) 2,524,369
_____________________________________________________________________________________________________________
Total assets 536,858,863
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 1,103,824
Dividends payable to shareholders 1,631,841
Payable for investment securities purchased 8,180,904
Payable upon return of securities loaned (Note 4) 2,524,369
Payable for foreign currency contracts held, at value (Notes 1 and 6) 56,134,944
Accrued investment management and services fee 341,088
Accrued distribution fee 25,855
Accrued transfer agency fee 66,540
Other accrued expenses 205,546
Open option contracts written, at value (premium received $232,038)(Note 5) 375,000
_____________________________________________________________________________________________________________
Total liabilities 70,589,911
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $466,268,952
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- $.01 par value; outstanding 80,942,386 shares (Note 1) $ 809,424
Additional paid-in capital 482,245,878
Undistributed net investment income (Note 1) 1,129,458
Accumulated net realized gain 194,788
Unrealized depreciation (Note 6) (18,110,596)
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $466,268,952
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 5.76
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
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<TABLE><CAPTION>
Financial statements
Statement of operations
IDS Global Bond Fund
Year ended Oct. 31, 1994
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $22,286) $ 347,513
Interest (net of foreign taxes withheld of $87,621) 26,716,446
_____________________________________________________________________________________________________________
Total income 27,063,959
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 3,414,109
Distribution fee 263,661
Transfer agency fee 678,819
Compensation of directors 8,581
Compensation of officers 4,835
Custodian fees 222,818
Postage 104,673
Registration fees 211,485
Reports to shareholders 40,179
Audit fees 21,500
Administrative 4,576
Other 23,317
_____________________________________________________________________________________________________________
Total expenses 4,998,553
_____________________________________________________________________________________________________________
Investment income -- net 22,065,406
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions (including gain of $625,817
from foreign currency transactions) (Note 3) 2,523,387
Net realized loss on financial futures contracts (5,397,695)
Net realized gain on closed or expired currency option contracts written (Note 5) 396,419
_____________________________________________________________________________________________________________
Net realized loss on investments and foreign currency (2,477,889)
Net change in unrealized appreciation or depreciation (27,808,371)
_____________________________________________________________________________________________________________
Net loss on investments and foreign currency (30,286,260)
_____________________________________________________________________________________________________________
Net decrease in net assets resulting from operations $(8,220,854)
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
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<TABLE><CAPTION>
Financial statements
Statements of changes in net assets
IDS Global Bond Fund
Year ended Oct. 31,
_____________________________________________________________________________________________________________
Operations and distributions 1994 1993
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 22,065,406 $ 7,576,379
Net realized gain (loss) on investments and foreign currency (2,477,889) 6,725,141
Net change in unrealized appreciation or depreciation (27,808,371) 7,250,626
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations (8,220,854) 21,552,146
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (19,649,029) (6,528,494)
Net realized gains (3,556,158) (1,816,626)
Excess distribution of realized gains (Note 1) -- (3,667,505)
_____________________________________________________________________________________________________________
Total distributions (23,205,187) (12,012,625)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
55,715,517 and 28,253,223 shares (Note 2) 332,640,161 172,510,247
Net asset value of 3,701,527 and 1,634,909 shares
issued in reinvestment of distributions 21,996,385 9,715,652
Payments for redemptions of
19,204,423 and 4,559,132 shares (112,115,501) (27,552,609)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
40,212,621 and 25,329,000 shares 242,521,045 154,673,290
_____________________________________________________________________________________________________________
Total increase in net assets 211,095,004 164,212,811
Net assets at beginning of year 255,173,948 90,961,137
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$1,129,458 and $1,860,201) $466,268,952 $255,173,948
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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PAGE 15
Notes to financial statements
IDS Global Bond Fund
Year ended Oct. 31, 1994
___________________________________________________________________
1. Summary of significant accounting policies
IDS Global Bond Fund is a series of IDS Global Series, Inc. and is
registered under the Investment Company Act of 1940 (as amended) as
a non-diversified, open-end management investment company. IDS
Global Series, Inc. has 10 billion authorized shares of capital
stock which can be freely allocated among the separate series as
designated by the board of directors. Significant accounting
policies followed by the fund are summarized below:
Valuation of securities
All securities are valued at the close of each business day.
Securities traded on national securities exchanges or included in
national market systems are valued at the last quoted sales price;
securities for which market quotations are not readily available,
are valued at fair value according to methods selected in good
faith by the board of directors. Determination of fair value
involves, among other things, reference to market indexes, matrixes
and data from independent brokers. Short-term securities maturing
in more than 60 days from the valuation date are valued at the
market price or approximate market value based on current interest
rates; those maturing in 60 days or less are valued at amortized
cost.
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.
Option contracts are valued daily at the closing prices on their
primary exchanges and unrealized appreciation or depreciation is
recorded. The fund will realize a gain or loss upon expiration or
closing of the option transaction. When options on debt securities
or futures are exercised, the fund will realize a gain or loss.
When other options are exercised, the proceeds on sales for a
written call option, the purchase cost for a written put option or
the cost of a security for a purchased put or call option is
adjusted by the amount of premium received or paid.
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PAGE 16
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.
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 <PAGE>
PAGE 17
sale" transactions. The character of distributions made during the
year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax
purposes. The effect on dividend distributions of certain book-to-
tax differences is presented as "excess distributions" in the
statement of changes in net assets. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized
gains (losses) were recorded by the fund.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, undistributed net investment
income has been decreased by $3,147,120, and accumulated net
realized gain has been increased by $3,149,913 resulting in a net
reclassification adjustment to decrease paid-in-capital by $2,793.
Dividends to shareholders
Dividends from net investment income, declared daily and paid each
calendar quarter, are reinvested in additional shares of the fund
at net asset value or payable in cash. Capital gains, when
available, are distributed along with the last income dividend of
the calendar year.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Dividend income is recognized on the ex-dividend
date or upon receipt of ex-dividend notification in the case of
certain foreign securities. For U.S. dollar denominated bonds,
interest income includes level-yield amortization of premium and
discount. For foreign bonds, except for original issue discount,
the fund does not amortize premium and discount.
___________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991, the fund pays IDS
Financial Corporation (IDS) a fee for managing its investments,
recordkeeping and other specified services. The fee is a percentage
of the fund's average daily net assets consisting of a group asset
charge in reducing percentages from 0.46% to 0.32% annually on the
combined net assets of all non-money market funds in the IDS MUTUAL
FUND GROUP and an individual annual asset charge of 0.46% of
average daily net assets.
The fund also pays IDS a distribution fee at an annual rate of $6
per shareholder account and a transfer agency fee at an annual rate
of $15.50 per shareholder account. The transfer agency fee is
reduced by earnings on monies pending shareholder redemptions.
IDS will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges by IDS Financial Services Inc. for distributing fund
shares were $8,125,263 for the year ended Oct. 31, 1994. The fund
also pays custodian fees to IDS Trust Company, an affiliate of IDS.
<PAGE>
PAGE 18
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 $2,426 for the year ended Oct. 31, 1994.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $421,564,053 and $194,628,622,
respectively, for the year ended Oct. 31, 1994. Realized gains and
losses are determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with IDS were
$7,825 for the year ended Oct. 31, 1994.
___________________________________________________________________
4. Lending of portfolio securities
At Oct. 31, 1994, securities valued at $2,138,000 were on loan to
brokers. For collateral, the fund received U.S. government
securities valued at $2,524,369. Income from securities lending
amounted to $9,170 for the year ended Oct. 31, 1994. 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>
Year ended Oct. 31, 1994
______________________________________________________
Puts Calls
Contracts Premium Contracts Premium
_____________________________________________________________________________
<S> <C> <C> <C> <C>
Balance Oct. 31, 1993 60 $ 82,455 -- $ --
Opened 450 377,632 628 801,542
Closed (168) (196,249) (478) (622,592)
Expired (242) (153,600) (50) (57,150)
______________________________________________________________________________
Balance Oct. 31, 1994 100 $110,238 100 $121,800
</TABLE>
___________________________________________________________________
6. Foreign currency contracts
At Oct. 31, 1994, the fund had entered into 11 foreign currency
exchange contracts that obligate the fund to deliver currencies at
specified future dates. The net unrealized appreciation of $399,786
on these contracts is included in the accompanying financial
statements. The terms of the open contracts are as follows:
<PAGE>
PAGE 19
<TABLE><CAPTION>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered Oct. 31, 1994 received Oct. 31, 1994
_____________________________________________________________________________________________
<S> <C> <C> <C> <C>
Nov. 2, 1994 4,963,583 $ 4,963,583 25,433,400 $ 4,942,363
U.S. Dollar French Franc
Nov. 4, 1994 5,992,030 5,992,030 3,800,000 6,219,638
U.S. Dollar British Pound
Nov. 7, 1994 7,300,000 5,419,666 5,399,226 5,399,226
Australian Dollar U.S. Dollar
Nov. 14, 1994 5,980,595 5,980,595 9,400,000,000 6,107,813
U.S. Dollar Italian Lira
Nov. 18, 1994 6,053,970 6,053,970 9,400,000,000 6,105,631
U.S. Dollar Italian Lira
Nov. 18, 1994 5,001,389 5,001,389 6,300,000 5,026,609
U.S. Dollar Swiss Franc
Nov. 25, 1994 5,014,692 5,014,692 12,800,000 5,014,676
U.S. Dollar Malaysian Dollar
Nov. 28, 1994 5,001,765 5,001,765 12,750,000 4,995,723
U.S. Dollar Malaysian Dollar
Nov. 28, 1994 4,135,120 4,135,120 2,540,000 4,155,712
U.S. Dollar British Pound
Nov. 30, 1994 17,850,000 4,414,662 4,411,765 4,411,765
South African Rand U.S. Dollar
Nov. 30, 1994 4,157,472 4,157,472 2,540,000 4,155,574
U.S. Dollar British Pound
___________ ___________
$56,134,944 $56,534,730
</TABLE>
<PAGE>
PAGE 20
<TABLE><CAPTION>
Investments in securities
IDS Global Bond Fund (Percentages represent value of
Oct. 31, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Bonds (82.7.%)(b)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Argentina (4.7%)
Argentina Euro
(U.S. Dollar) 6.50 % 2005 12,000,000 (c) $ 8,677,500
Argentina Republic
(U.S. Dollar) 4.25 2023 24,500,000 11,392,500
Telecom Argentina
(U.S. Dollar) 8.375 2000 2,000,000 (d) 1,760,000
____________
Total 21,830,000
_____________________________________________________________________________________________________________________________
Australia (4.9%)
Government of Australia
(Australian Dollar) 7.50 2005 37,800,000 22,615,362
_____________________________________________________________________________________________________________________________
Austria (1.2%)
Republic of Austria Euro
(Japanese Yen) 5.25 1998 540,000,000 5,761,800
_____________________________________________________________________________________________________________________________
Brazil (2.5%)
Brazil C Bonds
(U.S. Dollar) 4.00 2014 3,060,000 1,545,300
Brazil IDU Euro
(U.S. Dollar) 8.75 2001 12,250,000 10,014,375
______________
Total 11,559,675
_____________________________________________________________________________________________________________________________
Canada (10.1%)
Government of Canada
(Canadian Dollar) 7.25 2003 11,400,000 7,557,798
9.75 2021 7,200,000 5,577,661
10.50 2001 34,600,000 27,713,128
Hydro Quebec
(U.S. Dollar) 9.375 2030 4,000,000 4,105,000
Province of Quebec
(U.S. Dollar) 11.00 2015 800,000 918,000
Rogers Cable System
(Canadian Dollar) 9.65 2014 2,000,000 1,238,401
______________
Total 47,109,988
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 21
China (1.0%)
Guang Dong Province Enterprises
(U.S. Dollar) 8.75 2003 5,000,000 (d) 4,512,500
_____________________________________________________________________________________________________________________________
Columbia (0.7%)
Republic of Columbia
(U.S. Dollar) 7.25 2004 4,100,000 3,485,000
_____________________________________________________________________________________________________________________________
Denmark (0.9%)
Government of Denmark
(Danish Krone) 9.00 1998 23,000,000 3,958,990
_____________________________________________________________________________________________________________________________
France (2.6%)
Government of France
(French Franc) 5.50 2004 60,000,000 9,593,400
8.50 2023 12,500,000 2,367,250
_______________
Total 11,960,650
_____________________________________________________________________________________________________________________________
Germany (13.9%)
Federal Republic of Germany
(Deutsche Mark) 6.00 1997 26,500,000 17,447,335
6.00 2016 9,000,000 4,783,230
6.375 1998 32,200,000 (g) 20,947,388
8.25 1997 6,000,000 4,144,740
8.75 2001 24,675,000 17,429,186
_______________
Total 64,751,879
_____________________________________________________________________________________________________________________________
Indonesia (0.9%)
Pt Indah Kiat Euro
(U.S. Dollar) 8.875 2000 2,500,000 2,184,375
Tjiwi Kimia
(U.S. Dollar) 13.25 2001 2,000,000 2,075,000
_______________
Total 4,259,375
_____________________________________________________________________________________________________________________________
Italy (3.9%)
Government of Italy
(Italian Lira) 8.50 1999 23,600,000,000 13,688,000
Republic of Italy
(U.S. Dollar) 6.875 2023 6,000,000 4,687,500
__________
Total 18,375,500
______________________________________________________________________________________________________________________________
<PAGE>
PAGE 22
Japan (8.1%)
Euro Investment Bank
(Japanese Yen) 5.875 1999 380,000,000 4,172,400
Government of Japan
(Japanese Yen) 4.10 2004 2,100,000,000 20,704,950
5.70 2013 600,000,000 6,696,000
Japan Development Bank
(Japanese Yen) 6.50 2001 550,000,000 6,231,500
____________
Total 37,804,850
_____________________________________________________________________________________________________________________________
Korea (0.5%)
Korea Electric Power
(U.S. Dollar) 6.375 2003 3,000,000 2,546,250
_____________________________________________________________________________________________________________________________
Mexico (2.9%)
Banco Nacional de Comercia
(U.S. Dollar) 7.25 2004 2,000,000 1,635,000
Petroleos Mexicanos
(U.S. Dollar) 8.625 2023 3,000,000 2,370,000
United Mexican States Euro
(U.S. Dollar) 6.25 2019 7,000,000 4,418,750
United States of Mexico Euro
(U.S. Dollar) 5.437 2019 6,000,000 (c) 5,111,250
____________
Total 13,535,000
______________________________________________________________________________________________________________________________
Philippines (0.3%)
Philippines Long Distance Telephone
(U.S. Dollar) 10.625 2004 1,500,000 1,477,500
______________________________________________________________________________________________________________________________
Poland (0.2%)
Poland Discount
(U.S. Dollar) 6.812 2024 1,500,000 (d) 1,111,875
______________________________________________________________________________________________________________________________
South Africa (2.1%)
Escom
(South African Rand) 11.00 2008 57,500,000 9,990,625
_____________________________________________________________________________________________________________________________
Spain (1.3%)
Government of Spain
(Spanish Peso) 10.50 2003 770,000,000 5,875,100
_____________________________________________________________________________________________________________________________
Sweden (2.7%)
Government of Sweden
(Swedish Krona) 10.25 2003 42,000,000 5,684,738
11.00 1999 47,000,000 6,674,160
___________
Total 12,358,898
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 23
United Kingdom (6.4%)
United Kingdom Treasury
(British Pound) 8.00 2003 9,400,000 14,621,606
9.00 1994 1,000,000 1,639,370
9.00 2000 8,200,000 13,589,696
_____________
Total 29,850,672
_____________________________________________________________________________________________________________________________
United States (10.4%)
AMR
(U.S. Dollar) 9.75 2021 500,000 475,000
10.00 2021 1,000,000 972,500
Chesapeake
(U.S. Dollar) 9.875 2003 1,000,000 1,073,750
Delta Airlines
(U.S. Dollar) 9.875 2000 1,500,000 1,546,875
Fairchild Inds
(U.S. Dollar) Sr Sec Nts 12.25 1999 1,000,000 980,000
General Motors
(U.S. Dollar) 9.125 2001 2,000,000 2,080,000
Georgia-Pacific
(U.S. Dollar) Credit Sensitive Nts 9.85 1997 500,000 517,500
Government Natl Mtge Assn
(U.S. Dollar) 8.00 2024 5,029,007 4,827,847
Kearny Real Estate LP
(U.S. Dollar) 6.55 2000 2,500,000 2,482,822
PDV Amer
(U.S. Dollar) 7.875 2003 3,500,000 2,913,750
Phillips Pertoleum
(U.S. Dollar) 7.92 2023 3,115,000 2,710,050
Questar Pipeline
(U.S. Dollar) 9.375 2021 1,000,000 1,032,500
Resolution Funding Corp
(U.S. Dollar) Zero Coupon 7.50 2017 2,000,000 (e) 309,120
8.00 2016 3,259,000 (e) 547,381
Southern California Gas
(U.S. Dollar) 7.375 2023 900,000 761,625
Texas Utilities
(U.S. Dollar) 1st Mtge 9.75 2021 500,000 512,500
U.S. Treasury
(U.S. Dollar) 7.625 2022 13,000,000 12,374,179
8.875 2019 8,595,000 9,286,296
USX
(U.S. Dollar) 9.125 2013 3,000,000 2,902,500
____________
Total 48,306,195
_____________________________________________________________________________________________________________________________
Venezuela (0.5%)
Venezuela
(U.S. Dollar) 6.75 2020 5,000,000 2,378,125
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $403,636,587) $385,415,809
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 24
<CAPTION>
Common stocks (1.4%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Hanson Trust 583,005 (b) $ 2,204,342
Newmont Gold 21,200 (b) 842,700
SCE 30,000 416,250
Vaalreefs Exploration & Mining ADR 75,000 (b) 759,375
Woolworth's LTD 1,020,792 (b,f) 2,182,453
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $6,625,593) $ 6,405,120
_____________________________________________________________________________________________________________________________
Other (0.3%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Celcaribe 17,000 (d,h) $ 1,436,500
_____________________________________________________________________________________________________________________________
Total other
(Cost: $1,362,217) $ 1,436,500
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (15.3%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (1.0%)
Federal Natl Mtge Assn
Disc Note
11-18-94 4.97% $4,700,000 $ 4,689,036
_____________________________________________________________________________________________________________________________
Commercial paper (14.3%)
AIG Funding
11-03-94 5.12 2,600,000 2,599,263
Ameritech
11-15-94 5.03 1,050,000 1,047,958
Banc One Diversified Services
11-17-94 4.92 2,200,000 2,195,209
Cafco
11-21-94 4.87 3,000,000 2,991,917
Cargill
11-21-94 4.86 4,500,000 4,487,900
Ciesco LP
11-30-94 4.92 4,000,000 3,984,211
<PAGE>
PAGE 25
Colgate Palmolive
11-17-94 5.05 3,800,000 (i) 3,791,522
Eiger Capital
11-18-94 4.90 600,000 (i) 598,617
Gillette
11-02-94 4.75 4,500,000 (i) 4,499,406
Goldman Sachs
11-09-94 4.84 2,200,000 2,197,202
11-23-94 5.01 900,000 897,261
Norfolk Southern
11-03-94 4.87 1,100,000 (i) 1,099,704
11-14-94 5.08 3,300,000 (i) 3,293,982
PACCAR
11-28-94 4.92 3,500,000 3,487,138
Penney (JC)
11-10-94 4.95 1,400,000 1,398,278
11-16-94 5.05 5,100,000 5,089,332
PepsiCo
11-14-94 5.01 6,200,000 6,188,850
Quaker Oats
11-14-94 4.90 2,200,000 2,196,123
St. Paul Companies
11-14-94 5.01 4,000,000 (i) 3,992,807
11-21-94 4.85 5,000,000 (i) 4,986,583
Sandoz
11-04-94 5.00 500,000 499,793
Toyota Motor Credit
11-01-94 4.93 2,000,000 2,000,000
USAA Capital
11-16-94 4.92 3,400,000 3,393,058
____________
Total 66,916,114
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $71,605,602) $ 71,605,150
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $483,229,999)(j) $464,862,579
_____________________________________________________________________________________________________________________________
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 Oct. 31, 1994.
(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 Oct. 31, 1994, securities valued at $20,947,388 were held to cover open currency call options
written as follows:
<CAPTION>
<S> <C> <C> <C> <C>
Issuer Number Exercise Expiration Value(a)
of contracts price date
____________________________________________________________________________________
Dec. Deutsch Mark Futures 100 $64.5 Nov. 1994 $250,000
(h) Each Celcaribe unit represents note trust certificates and common stock certificates. On or before
Dec. 31, 1994, the units will be split into a separately valued bond and common stock.
(i) 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.
(j) At Oct. 31, 1994, the cost of securities for federal income tax purposes was $483,241,768 and the
aggregate gross unrealized appreciation and depreciation based on that cost was:
<S> <C>
Unrealized appreciation $ 6,183,563
Unrealized depreciation (24,562,752)
_____________________________________________________________________________
Net unrealized depreciation $(18,379,189)
_____________________________________________________________________________
/TABLE
<PAGE>
PAGE 26
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 deposits (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
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<PAGE>
PAGE 27
IDS Strategy, Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
(icon of) chess piece
IDS Selective Fund
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
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and
notes to seek a high level of current income.
(icon of) chess piece
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
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
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
<PAGE>
PAGE 28
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 Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the
world that offer potential for superior growth. Holdings may range
from small- to large-capitalization stocks, including those of
companies involved in areas of rapid economic growth.
(icon of) chess piece
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
IDS Equity Plus 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
<PAGE>
PAGE 29
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by IDS research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stock of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) chess piece
IDS Utilities Income Fund
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
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.
<PAGE>
PAGE 30
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 Equity Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS 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 31
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 planner or writing to IDS Shareholder Service, P.O.
Box 534, Minneapolis, MN 55440-0534. Read it carefully before you
invest or send money.
<PAGE>
PAGE 32
Federal income tax information
IDS Global Bond Fund
___________________________________________________________________
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on a Form 1099-DIV, Dividends and Distributions,
last January. Dividends paid to you since the end of last year
will be reported to you on a tax statement sent next January.
Shareholders should consult a tax adviser on how to report
distributions for state and local purposes.
IDS Global Bond Fund
Fiscal year ended Oct. 31, 1994
Income distributions
taxable as dividend income,
0.63% qualifying for deduction by corporations.
Payable date Per share
Dec. 29, 1993 $0.2026
March 28, 1994 0.0704
June 28, 1994 0.0675
Sept. 28, 1994 0.0592
Total $0.3997
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 29, 1993 $0.0205
Total distributions $0.4202
The distribution of $0.2231 per share, payable Dec. 29, 1993,
consisted of $0.1515 derived from net investment income, $0.0511
from net short-term capital gains (a total of $0.2026 taxable as
dividend income) and $0.0205 from net long-term capital gains.
<PAGE>
PAGE 33
Quick telephone reference
IDS Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
Your IDS financial planner:
IDS
An American Express company
AMERICAN
EXPRESS
IDS Global Bond Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 34
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in blue strip at the top
of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
