<PAGE>
PAGE 1
IDS
Global Growth
Fund
1994 annual report
(prospectus enclosed)
(icon of) globe
The goal of IDS Global Growth Fund is long-term growth of capital.
The fund invests primarily in common stocks and securities
convertible into common stocks of companies throughout the world.
(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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PAGE 2
(icon of) globe
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 offers investors the potential to
prosper along with them.
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Contents
(Icon of) One book inside of another and their both being opened
together.
The purpose of this annual report is to tell investors how the fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the fund in detail.
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 19
IDS mutual funds 24
Federal income tax information 27
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
Key terms 7p
Investment policies and risks
Facts about investments and their risks 8p
Fund structure 11p
Valuing assets 11p
How to buy, exchange or sell shares
How to buy shares 12p
How to exchange shares 14p
How to sell shares 14p
Reductions of the sales charge 18p
Waivers of the sales charge 19p
Special shareholder services
Services 20p
Quick telephone reference 20p
Distributions and taxes
Dividend and capital gain distributions 21p
Reinvestments 22p
Taxes 23p
How the fund is organized
Shares 26p
Voting rights 27p
Shareholder meetings 27p<PAGE>
PAGE 4
Directors and officers 27p
Investment manager and transfer agent 29p
Distributor 30p
About IDS
General information 31p
To our shareholders
(Photo of) William R. Pearce
President of the fund
(Photo of) Edward F. Korff
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
True to their nature, foreign stock markets fluctuated considerably
during the past fiscal year. The ups clearly exceeded the downs,
however, as evidenced by the double-digit total return that IDS
Global Growth Fund generated for shareholders during the fiscal
year ended Oct. 31, 1994.
The year got off to an exceptionally strong start, as the fund
continued to ride a wave created by investors pouring money into
top-performing markets such as Southeast Asia, Latin America
(including Mexico) and Hong Kong at a remarkable rate. The cash
influx had a profound effect; in November and December alone (the
first two months of the fund's fiscal year), some markets were up a
stunning 20% and more, propelling many stocks to unrealistically
high levels.
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PAGE 5
Winter slide
That fact became evident within days of the new year, as prices
began to fall nearly as fast as they had risen. The retreat began
in Mexico, where social unrest and a weakening currency quickly
prompted large investors to take profits (sell stocks that had
registered sizable gains). This activity drove down stock prices.
The negative psychology soon spread to other Latin American
markets, such as Argentina and Chile, where investors also had
realized great gains.
The story was the same in Hong Kong and Southeast Asia, although
the sell-offs resulted more from rising interest rates - usually a
negative influence on stocks. Similar to the situation in the Latin
American markets, the declines in Hong Kong and Southeast Asia
continued into summer.
The biggest exception to the trend was Japan, whose slumping stock
market rebounded quite strongly during much of 1994. Many European
markets also held up reasonably well, as the economies there began
to work their way out of recession. Our exposure to those markets
provided positive results that helped temper the downturns in other
parts of the world.
Summer surge
By July, Latin America and Southeast Asia began to heat up again,
giving rise to a rally that lasted for several weeks. Rising
interest rates quickly reversed the trend, though, and pushed most
foreign markets into negative territory during the fall.
We kept the portfolio well-diversified throughout the year, as we
held stocks in nearly two dozen countries. As it has been since the
fund's inception, the main investment focus remains on companies
involved in infrastructure (construction of roads,
telecommunications systems, etc.), finance or protecting the
environment. While we will continue to hold stocks from around the
world, over the near term we're planning to increase our exposure
to Southeast Asia, The Philippines and Indonesia.
At the moment, the key concern for foreign markets continues to be
the possibility of higher interest rates. But, taking a longer
perspective, what's more important is that the opportunities around
the globe are as abundant as ever. Many economies continue to grow
at impressive rates, while inflation, in most cases, remains
subdued. That's a climate conducive to healthy profits for
companies and, ultimately, advancing stock prices.
Edward F. Korff
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PAGE 6
12-month performance
(All figures per share)
Net asset value (NAV)
Oct. 31, 1994 $ 6.96
Oct. 31, 1993 $ 6.30
Increase $ 0.66
Distributions
Nov. 1, 1993 - Oct. 31, 1994
From income $ 0.08
From capital gains $ 0.03
Total distributions $ 0.11
Total return* +12.1%
* 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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PAGE 7
IDS Global Growth Fund
Your fund's ten largest holdings
<TABLE>
<CAPTION>
Percent Value
(of fund's net assets) (as of Oct. 31, 1994)
<S> <C> <C>
Bankgesellshchaft Berlin (Germany) 1.79% $11,973,250
Dominant mortage bank in Berlin area.
Friedrich Grohe (Germany) 1.78 11,920,040
Largest manufacturer of faucets and fixtures in Europe
Castorama Dubois (France) 1.76 11,790,252
A fast growing "do-it-yourself" retailer in
France (currently expanding into Italy).
SAP (Germany) 1.73 11,574,140
Leading computer software producer.
SAGA (France) 1.70 11,397,190
Leading computer software producer
Reliance Inds Euro (India) 1.70 11,362,500
Largest petrochemical company in India.
AMMB Holdings (Singapore/Malaysia) 1.63 10,958,000
Rapidly growing commercial/merchant bank.
Sulzer Gebruder (Switzerland) 1.58 10,597,650
Leading Swiss producer of specialized machinery
and medical technology.
Veba (Germany) 1.50 10,057,530
Conglomerate with interests in energy, chemicals
and telecommunications.
Renong (Malaysia) 1.50 10,050,000
2.50% Cv Bond 2005
Engaged in the engineering, construction and operation of
major infrastruction projects in Malaysia.
(Pie chart)
The ten holdings listed here make up 16.67% 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 8
Making the most of your fund
Average annual total return
(as of Oct. 31, 1994)
1 year Since 5/29/90
+6.51% +7.84%
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 Growth Fund
$13,959
Global Growth
Fund
Lipper International
Fund Index
EAFE Index
$9,500
5/29/90 '90 '91 '92 '93 '94
Assumes: o Holding period from 6/01/90 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 $743.
The Morgan Stanley Capital International EAFE Index (EAFE Index),
compiled from a composite of securities markets of Europe,
Australia and the Far East, is widely recognized by investors in
foreign markets as the measurement index for portfolios of non-
North American securities.
Lipper International Fund Index, published by Lipper Analytical
Services, Inc., includes 10 funds that are generally similar to the
fund, although some funds in the index may have somewhat different
investment policies or objectives.
On the chart above you can see how the fund's total return compared
to two widely cited performance indexes, the EAFE and the Lipper
International Fund Index. Incomparing Global Growth Fund to the
two indexes, you should take into account the fact that the fund's
performance reflects the maximum sales charge of 5%, while such
charges are not reflected in the performance of the indexes. If
you were actually to buy either individual stocks or growth mutual
funds, any sales charges that you pay would reduce your total
return as well.
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PAGE 10
Average annual total return
(as of Oct. 31, 1994)
1 year Since 5/29/90
+6.51% +7.84%
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.<PAGE>
PAGE 11
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 Growth 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 four-year
period ended October 31, 1994, and for the period from May 29, 1990
(commencement of operations), to October 31, 1990. 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 Growth 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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PAGE 12
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Global Growth Fund
Oct. 31, 1994
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated issuers (identified cost $609,170,787) $670,769,813
Investments in securities of affiliated issuer (identified cost $2,652,041) 1,950,000
Cash in bank on demand deposit 1,309,861
Receivable for investment securities sold 336,571
Receivable for foreign currency contracts held, at value (Notes 1 and 4) 571,978
Dividends and accrued interest receivable 1,863,402
U.S. government securities held as collateral (Note 5) 23,108,486
_____________________________________________________________________________________________________________
Total assets 699,910,111
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Payable for investment securities purchased 394,122
Payable for foreign currency contracts held, at value (Notes 1 and 4) 570,234
Payable upon return of securities loaned (Note 5) 28,011,486
Accrued investment management and services fee 469,589
Accrued distribution fee 50,278
Accrued transfer agency fee 125,433
Other accrued expenses 309,938
_____________________________________________________________________________________________________________
Total liabilities 29,931,080
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $669,979,031
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- $.01 par value; outstanding 96,297,457 shares (Note 1) $ 962,975
Additional paid-in capital 598,901,376
Undistributed net investment income (Note 1) 3,950,178
Accumulated net realized gain 5,265,773
Unrealized appreciation (Note 4) 60,898,729
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $669,979,031
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock $ 6.96
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 13
<TABLE><CAPTION>
Statement of operations
IDS Global Growth Fund
Year ended Oct. 31, 1994
Investment income
_____________________________________________________________________________________________________________
<S> <C>
Income:
Dividends (net of foreign taxes withheld of $629,294) $ 6,363,601
Interest 4,203,540
_____________________________________________________________________________________________________________
Total income 10,567,141
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 4,068,528
Distribution fee 446,687
Transfer agency fee 1,114,454
Compensation of directors 8,658
Compensation of officers 5,438
Custodian fees 316,510
Postage 178,290
Registration fees 284,798
Reports to shareholders 70,098
Audit fees 20,000
Administrative 5,951
Other 23,899
_____________________________________________________________________________________________________________
Total expenses 6,543,311
_____________________________________________________________________________________________________________
Investment income -- net 4,023,830
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions (including gain of $17,913
from foreign currency transactions) (Note 3) 5,188,698
Net change in unrealized appreciation or depreciation 33,656,723
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 38,845,421
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $42,869,251
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
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PAGE 14
<TABLE><CAPTION>
Financial statements
Statements of changes in net assets
IDS Global Growth Fund
Year ended Oct. 31,
Operations and distributions 1994 1993
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 4,023,830 $ 988,544
Net realized gain on investments and foreign currency 5,188,698 3,967,337
Net change in unrealized appreciation or depreciation 33,656,723 29,879,290
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 42,869,251 34,835,171
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (1,094,030) (494,216)
Net realized gains (3,909,791) (512,166)
Excess distribution of realized gains (Note 1) -- (59,927)
_____________________________________________________________________________________________________________
Total distributions (5,003,821) (1,066,309)
_____________________________________________________________________________________________________________
Capital share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of
72,265,905 and 27,423,494 shares (Note 2) 487,713,822 156,463,473
Net asset value of 741,509 and 215,463 shares
issued in reinvestment of distributions 4,980,642 1,060,945
Payments for redemptions of
15,415,895 and 2,934,518 shares (104,574,827) (16,190,471)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions
representing net addition of
57,591,519 and 24,704,439 shares 388,119,637 141,333,947
_____________________________________________________________________________________________________________
Total increase in net assets 425,985,067 175,102,809
Net assets at beginning of year 243,993,964 68,891,155
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income
of $3,950,178 and $1,092,150) $669,979,031 $243,993,964
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
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PAGE 15
Notes to financial statements
IDS Global Growth Fund
___________________________________________________________________
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. 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.
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.<PAGE>
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 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 <PAGE>
PAGE 17
of the deferral of losses on certain futures contracts, the
recognition of certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes and losses deferred due to "wash
sale" transactions. The character of distributions made during the
year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax
purposes. The effect on dividend distributions of certain book-to-
tax differences is presented as "excess distributions" in the
statement of changes in net assets. Also, due to the timing of
dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized
gains (losses) were recorded by the fund.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, undistributed net investment
income has been decreased by $71,772 and accumulated net realized
gain has been increased by $79,588, resulting in a net
reclassification adjustment to decrease paid-in-capital by $7,816.
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 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 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 $8,345,042 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 $2,624 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 $445,984,705 and $107,240,218,
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
$122,877 for the year ended Oct. 31, 1994.
4. Foreign currency contracts
At Oct. 31, 1994, the fund had entered into five foreign currency
exchange contracts that obligate the fund to deliver currencies at
specified future dates. The net unrealized appreciation of $1,744
on these contracts is included in the accompanying financial
statements. The terms of the open contracts are as follows:
<TABLE><CAPTION>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered Oct. 31, 1994 received Oct. 31, 1994
____________________________________________________________________________________________________
<S> <S> <C> <S> <C>
Nov. 1, 1994 134,763 $134,763 83,583 $136,809
U.S. Dollar British Pound
Nov. 1, 1994 209,982,888 96,716 96,500 96,500
Indonesia Rupiah U.S. Dollar
Nov. 3, 1994 86,998,560 40,071 40,046 40,046
Indonesia Rupiah U.S. Dollar
Nov. 4, 1994 433,757,025 199,785 199,726 199,726
Indonesia Rupiah U.S. Dollar
Nov. 10, 1994 98,899 98,899 60,421 98,897
U.S. Dollar British Pound
________ ________
$570,234 $571,978
</TABLE>
___________________________________________________________________
5. Lending of portfolio securities
At Oct. 31, 1994, securities valued at $25,189,419 were on loan to
brokers. For collateral, the fund received $4,903,000 in cash and
U.S. government securities valued at $23,108,486. Income from
securities lending amounted to $250,313 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.
<PAGE>
PAGE 19
__________________________________________________________________
6. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on page 5 of the prospectus.
<TABLE><CAPTION>
Investments in securities
IDS Global Growth Fund (Percentages represent value of
Oct. 31, 1994 investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (76.5%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Argentina (6.6%)
Banks and savings & loans (2.1%)
Banco de Galicia ADR 250,000 (d) $ 6,750,000
Banco Frances ADR 275,000 7,046,875
____________
Total 13,796,875
_____________________________________________________________________________________________________________________________
Beverages & tobacco (1.2%)
Baesa ADR 215,000 (c) 8,250,625
_____________________________________________________________________________________________________________________________
Building materials & construction (0.7%)
IRSA 150,000 (b,c) 4,950,000
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.7%)
Commercial Del Plata 1,050,000 3,538,500
Comp Naviera Perez ADR 750,000 8,130,000
____________
11,668,500
_____________________________________________________________________________________________________________________________
Utilities-electric (0.9%)
Capex GDR 300,000 (c) 5,775,000
_____________________________________________________________________________________________________________________________
Australia (1.0%)
Retail
Woolworth's LTD 1,000,000 2,138,000
Woolworth's LTD 200,000 (b) 4,277,090
____________
6,415,090
_____________________________________________________________________________________________________________________________
Canada (3.3%)
Energy (2.7%)
Renaissance Energy 14,300 (b,c) 331,716
Renaissance Energy 385,700 (c) 8,947,044
Sceptre 1,000,000 (c) 8,872,100
___________
Total 18,150,860
_____________________________________________________________________________________________________________________________
Utilities-gas (0.6%)
Archer Resource 300,000 (c) 3,659,760
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities. <PAGE>
PAGE 20
Chile (2.4%)
Banks and savings & loans (0.7%)
Banco O'Higgins 250,000 (c,d) 5,000,000
_____________________________________________________________________________________________________________________________
Financial services (0.5%)
GT Chile Growth Euro 100,000 3,400,000
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.2%)
Madeco ADR 250,000 7,812,500
_____________________________________________________________________________________________________________________________
France (11.0%)
Banks and savings & loans (0.5%)
Sovac 45,000 3,659,625
_____________________________________________________________________________________________________________________________
Chemicals (1.3%)
Air Liquide 60,873 8,587,963
_____________________________________________________________________________________________________________________________
Communications equipment (1.3%)
Alcatel Cable 75,000 8,744,625
_____________________________________________________________________________________________________________________________
Computers & office equipment (1.5%)
Sligos 125,000 9,786,625
_____________________________________________________________________________________________________________________________
Food (0.9%)
IDIA 200,000 6,296,000
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.6%)
CNIM 24,026 4,057,247
_____________________________________________________________________________________________________________________________
Industrial transportation (1.7%)
SAGA 115,000 11,397,190
_____________________________________________________________________________________________________________________________
Retail (1.8%)
Castorama Dubois 80,897 11,790,252
_____________________________________________________________________________________________________________________________
Utilities-electric (1.4%)
Lyonnaise Des Eaux & De L'Eclairage 101,356 9,217,720
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 21
Germany (9.5%)
Banks and savings & loans (1.8%)
Bankgesell Berlin 50,000 11,973,250
_____________________________________________________________________________________________________________________________
Building materials & construction (2.8%)
CHA Holdings 25,000 5,587,500
Pfleiderer 20,000 7,503,240
Weru 10,000 5,654,030
____________
Total 18,744,770
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.1%)
Jungheinrich 30,000 7,144,020
_____________________________________________________________________________________________________________________________
Retail (2.3%)
AVA 20,000 7,503,240
Douglas Holdings 25,000 8,098,575
____________
Total 15,601,815
_____________________________________________________________________________________________________________________________
Utilities-electric (1.5%)
Veba 30,000 10,057,530
_____________________________________________________________________________________________________________________________
Hong Kong (4.7%)
Building materials & construction (1.8%)
Henderson Investment 6,000,000 5,508,000
Hysan Development 2,500,000 6,662,500
_____________
Total 12,170,500
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (2.1%)
Hutchison Whampoa 1,700,000 7,852,300
Shun Tak Enterprise 7,000,000 6,153,000
____________
Total 14,005,300
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.8%)
Hong Kong Telecom 2,596,200 (d) 5,558,464
_____________________________________________________________________________________________________________________________
India (1.7%)
Miscellaneous
Reliance Inds Euro GDR 450,000 (b) 11,362,500
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 22
Indonesia (2.6%)
Chemicals (1.3%)
PT Tri Polyta ADR 300,000 (c) 8,925,000
_____________________________________________________________________________________________________________________________
Real estate (1.3%)
PT Jaya Real Properties 2,166,000 (c) 8,754,285
_____________________________________________________________________________________________________________________________
Italy (1.2%)
Furniture & appliances
Natuzzi ADR 250,000 8,062,500
_____________________________________________________________________________________________________________________________
Japan (6.4%)
Electronics (2.7%)
Alpine Electronics 450,000 (d) 9,199,350
Chudenko 97,450 (c) 3,581,970
Japan Radio 300,000 (d) 5,637,300
____________
Total 18,418,620
_____________________________________________________________________________________________________________________________
Furniture & appliances (1.4%)
Sony 150,000 9,153,300
_____________________________________________________________________________________________________________________________
Retail (2.3%)
Canon Sales 200,000 6,752,600
York Benimaru 200,000 (d) 8,425,400
____________
Total 15,178,000
_____________________________________________________________________________________________________________________________
Mexico (5.4%)
Banks and savings & loans (1.5%)
Grupo Finance Banamex 1,000,000 6,648,200
Grupo Financiero Banorte 750,000 (c) 3,661,650
____________
Total 10,309,850
_____________________________________________________________________________________________________________________________
Beverages & tobacco (0.5%)
Formento Economico 750,000 3,295,050
_____________________________________________________________________________________________________________________________
Building materials & construction (1.2%)
Bufete Inds ADR 200,000 8,100,000
_____________________________________________________________________________________________________________________________
Metals (1.2%)
Grupo Simec ADR 325,000 (c) 8,043,750
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.0%)
Grupo Carso ADR 300,000 (c) 6,600,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 23
Netherlands (3.5%)
Building materials & construction (2.5%)
IHC Caland 300,000 7,621,500
Volker Stevin 177,400 9,076,848
_____________
Total 16,698,348
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.0%)
Boskalis 300,000 (d) 6,820,200
_____________________________________________________________________________________________________________________________
Norway (0.9%)
Energy
Saga Petro Cl B 500,000 5,699,500
_____________________________________________________________________________________________________________________________
Peru (0.2%)
Banks and savings & loans
Banco Wiese ADR 70,000 (c,d) 1,487,500
_____________________________________________________________________________________________________________________________
Phillipines (0.5%)
Multi-industry conglomerates
Universal Robina 3,930,500 (c) 3,435,257
_____________________________________________________________________________________________________________________________
Singapore/Malaysia (7.5%)
Banks and savings & loans (4.1%)
AMMB Holdings 1,000,000 10,958,000
Commerce Asset 1,250,000 5,576,250
Development Bank of Singapore 500,000 5,311,500
United Overseas Bank 519,375 5,693,908
____________
Total 27,539,658
_____________________________________________________________________________________________________________________________
Electronics (1.3%)
Technology Resource Cl A 2,250,000 (c) 8,761,500
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.7%)
Resorts World 750,000 4,755,000
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.4%)
Keppel 1,000,000 9,193,000
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 24
Spain (1.0%)
Food
Pryca Centros Comer 400,000 6,578,400
_____________________________________________________________________________________________________________________________
Switzerland (1.6%)
Industrial equipment & services
Sulzer Gebruder 15,000 10,597,650
_____________________________________________________________________________________________________________________________
United Kingdom (2.8%)
Electronics (0.8%)
Electrocomponents 700,000 5,270,300
_____________________________________________________________________________________________________________________________
Health care (0.7%)
Medeva 1,538,311 4,430,336
_____________________________________________________________________________________________________________________________
Media (0.7%)
Blenheim Group 1,200,000 4,969,200
_____________________________________________________________________________________________________________________________
Restaurants & lodging (0.6%)
JD Wetherspoon 665,000 4,386,340
_____________________________________________________________________________________________________________________________
United States (2.7%)
Building materials & construction (0.7%)
Foamex Intl 500,000 (c) 4,500,000
_____________________________________________________________________________________________________________________________
Communications equipment (0.4%)
Geotek Communications 300,000 (c) 2,568,750
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.7%)
Calgon Carbon 400,000 4,500,000
_____________________________________________________________________________________________________________________________
Industrial transportation (0.9%)
Fritz 165,000 (c) 6,435,000
_____________________________________________________________________________________________________________________________
Total common stocks of unaffiliated issuers
(Cost: $466,557,776) $512,500,900
_____________________________________________________________________________________________________________________________
<CAPTION>
Bonds (4.9%)
_____________________________________________________________________________________________________________________________
Issuer and Principal Value(a)
coupon rate Amount
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Indonesia (1.3%)
Global Mark Intl Euro
(U.S. Dollar)
3.50% Cv 1997 $ 8,000,000 (b) $ 8,800,000
_____________________________________________________________________________________________________________________________
Malaysia (1.5%)
Renong
(U.S. Dollar)
2.50% Cv 2005 10,000,000 (b) 10,050,000
_____________________________________________________________________________________________________________________________
Mexico (0.8%)
Mexican Cetes
(Mexican Peso)
Zero Coupon
13.94% Treasury Bill 1995 19,250,000 (g) 5,363,479
_____________________________________________________________________________________________________________________________
South Africa (1.3%)
Escom
(South African Rand)
11% 2008 17,500,000 3,040,625
Liberty Life Inds Euro
(U.S. Dollar)
6.50% 2004 6,000,000 (b,d) 5,880,000
<PAGE>
PAGE 25 ____________
Total 8,920,625
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $32,069,316) $ 33,134,104
_____________________________________________________________________________________________________________________________
<CAPTION>
Preferred stocks & other (5.1%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
France (0.1%)
Air Liquide
Rights 60,873 $ 842,178
_____________________________________________________________________________________________________________________________
Germany (5.0%)
Friedrich Grohe 40,000 11,920,040
Hornbach 9,000 9,578,601
SAP 20,000 11,574,140
_____________
Total 33,072,781
_____________________________________________________________________________________________________________________________
Switzerland (--%)
Credit Suisse Holdings
Warrants 7,500 11,064
_____________________________________________________________________________________________________________________________
Total preferred stocks & other
(Cost: $19,334,509) $ 33,926,023
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (13.6%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.5%)
Federal Natl Mtge Assn Disc Note
11-28-94 4.81% $3,200,000 $ 3,188,504
_____________________________________________________________________________________________________________________________
Commercial paper (11.4%)
AIG Funding
11-03-94 5.12 1,500,000 1,499,575
Amgen
11-18-94 4.88 5,600,000 5,587,148
Aon
11-17-94 5.03 3,000,000 2,993,333
11-18-94 4.90 5,000,000 4,988,478
Avco Financial Services
11-23-94 4.88 4,000,000 3,988,120
Commercial paper (cont'd)
Cafco
11-16-94 4.84 3,800,000 3,792,000
Ciesco LP
11-28-94 4.88 2,200,000 2,191,998
Gannett
11-22-94 4.87 2,600,000 (e) 2,592,644
Goldman Sachs
11-22-94 4.92 4,300,000 4,287,709
11-23-94 5.01 5,100,000 5,084,479
Merrill Lynch
12-05-94 5.03 3,600,000 3,583,000
Mobil Australia Finance (Delaware)
11-22-94 4.85 1,800,000 (e) 1,794,929
11-29-94 4.90 5,500,000 (e) 5,479,124
12-01-94 4.92 1,800,000 (e) 1,792,650
Penney (JC) Funding
11-15-94 5.11 2,400,000 2,395,259
11-30-94 4.90 5,000,000 4,980,344<PAGE>
PAGE 26
Quaker Oats
11-14-94 4.90 4,100,000 4,092,775
St. Paul Companies
12-05-94 4.94 3,100,000 (e) 3,085,595
USAA Capital
12-01-94 4.92 6,700,000 6,672,642
12-02-94 4.93 5,500,000 5,476,793
____________
Total 76,358,595
_____________________________________________________________________________________________________________________________
Letters of credit (1.7%)
Bank of Amer-
Hyundai Motor Finance
11-07-94 5.07 2,200,000 2,198,148
12-08-94 5.20 3,900,000 3,879,317
Credit Suisse -
Pemex Capital
11-22-94 4.85 5,600,000 5,584,222
____________
Total 11,661,687
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $91,209,186) $ 91,208,786
_____________________________________________________________________________________________________________________________
Total investments in securities of unaffiliated issuers
(Cost: $609,170,787) $670,769,813
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
Investments in securities of affiliated issuer (f)
_____________________________________________________________________________________________________________________________
<CAPTION>
Common stock (0.3%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
United States
Chemicals
GNI Group 400,000 (c) $ 1,950,000
_____________________________________________________________________________________________________________________________
Total investments in securities of affiliated issuer
(Cost: $2,652,041) $ 1,950,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $611,822,828)(h) $672,719,813
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
______________________________________________________________________________________________________________________________
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) At Oct. 31, 1994, the cost of securities for federal income tax purposes was $611,821,880 and the
aggregate gross unrealized appreciation and depreciation based on that cost was:
<S> <C>
Unrealized appreciation $82,975,611
Unrealized depreciation (22,077,678)
____________________________________________________________________________________________
Net unrealized appreciation $60,897,933
____________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 27
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 28
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 29
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 30
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 31
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 32
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 33
Federal income tax information
IDS Global Growth 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. The dividends listed below were reported
to you on a Form 1099-DIV, Dividends and Distributions, last
January. Shareholders should consult a tax adviser on how to report
distributions for state and local purposes.
IDS Global Growth Fund
Fiscal year ended Oct. 31, 1994
Income distribution
taxable as dividend income
7.51% qualifying for deduction by corporations.
Payable date Per share
Dec. 30, 1993 $0.0812
Capital gain distribution
taxable as long-term capital gain.
Payable date Per share
Dec. 30, 1993 $0.0255
Total distributions $0.1067
The distribution of $0.1067 per share, payable Dec. 30, 1993
consisted of $0.0233 derived from net investment income, $0.0579
from net short-term capital gains (a total of $0.0812 taxable as
dividend income) and $0.0255 from net long-term capital gains.
<PAGE>
PAGE 34
Quick telephone reference
IDS Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
Your IDS financial planner:
IDS
An American Express Company
AMERICAN
EXPRESS
IDS Global Growth Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 35
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in blue strip at the top
of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
