IDS
Global Bond
Fund
(Picture of: icon globe)
The goal of IDS Global Bond Fund,
a part of IDS Global Series, Inc.,
is a high total return through income
and growth of capital.
Distributed by American Express Financial Advisors Inc.
A bounty of bonds
In today's global economy, investment opportunities
don't stop at the water's edge. While bonds issued
by the U.S. government and corporations once made up
almost all of the bond market, today more than half
of the world's debt securities are issued from outside
the United States. This means expanded opportunity for
investors. Global Bond Fund's aim is to take advantage
of opportunities in bond markets at any time and in
any place, providing investors with greater portfolio
diversification.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 22
Board members and officers 28
IDS mutual funds 29
<PAGE>
(Picture of: William R. Pearce)
William R. Pearce
President of the Fund
(Picture of Ray Goodner)
Ray Goodner
Portfolio manager
To our shareholders
From the president
If you're an experienced investor, you know that 1995 was an
unusually strong year for many worldwide financial markets.
Perhaps just as important, you also know that history shows that
bull markets don't last forever. Though they're often unpredictable,
declines - whether they're brief or long-lasting, moderate or
substantial - are always a possibility.
That fact reinforces the need for investors to periodically review
their long-term goals and examine whether their investment program
remains on track to achieving them. Your quarterly investment
statements are one part of that monitoring process. The other is
a meeting with your American Express financial advisor. That becomes
even more important if there's a major change in your financial
situation or in the financial markets.
William R. Pearce
From the portfolio manager
Despite a sharp downturn in worldwide bond markets early in 1996,
IDS Global Bond Fund recorded an overall positive performance in
the first half of the fiscal year. For the six months (November
1995 through April 1996), shareholders realized a total return of
approximately 2% for Class A shares.
The largely favorable bond environment that had been in place since
the outset of 1995 remained in place during the first three months
of the fiscal period. As rates fell in many global markets, they
boosted the value of existing bonds and, therefore, the Fund's net
asset value. The rate trend was especially beneficial to our
portfolio because of its longer-than-average maturity level,
which makes a portfolio more price-sensitive to swings in interest
rates.
'Emerging' markets strong performers
While the Fund enjoyed good gains from a number of major markets,
including the United States, the standout performers for the Fund
were the so-called "emerging" markets. Although they comprised only
about 10% of the portfolio, these markets, including Brazil,
Argentina, Mexico and Poland, provided a substantial performance
boost. (To guard against the negative effect of potential currency
declines in those markets, we restricted such investments to
securities denominated in U.S. dollars.) Other winners for the
Fund were the high-yield markets in Europe, Italy, Spain and Sweden,
which experienced higher bond prices and stronger currencies over
the period.
By February, though, the investment environment had changed,
particularly in the U.S. Amid signs of a possible pick-up in
economic growth and resultant concern about a rise in the inflation
rate, long-term interest rates began heading higher and, in the
process, sending bond prices lower. In sympathy with the U.S., the
bond markets in Japan, the United Kingdom and Germany also performed
poorly, all of which negatively affected the Fund's results.
U.S. exposure reduced
Portfolio changes during the six months were relatively modest,
the biggest being a reduction in exposure to the U.S. (from about
40% of assets to about 30%) and Japanese markets. We also reduced
the average maturity of U.S. holdings to protect the Fund against
the possibility of an ongoing rise in rates.
Heading into the second half of the fiscal year, we are encouraged
that the final month of the past period saw some leveling off in
U.S. long-term rates. If, as we expect, upcoming inflation reports
prove unthreatening, that would go a long way toward easing the
upward pressure on rates both here and abroad and, we believe,
allow them to come back down as the year progresses.
At the same time, recent downturns in the U.S. dollar value of
major foreign currencies seem to offer limited potential. The
persistent U.S. foreign payments deficit, coupled with the
political stalemate over the federal budget, will likely stall
the dollar's appreciation during the balance of 1996. In any
event, our ability to invest on a worldwide basis gives us the
opportunity to position the portfolio to best address changes in
the investment environment.
Ray Goodner
<PAGE>
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1996 $ 6.05
Oct. 31, 1995 $ 6.11
Decrease $ 0.06
Distributions
Nov. 1, 1995 - April 30, 1996
From income $ 0.20
From capital gains $ -
Total distributions $ 0.20
Total return* +2.2%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1996 $ 6.05
Oct. 31, 1995 $ 6.11
Decrease $ 0.06
Distributions
Nov. 1, 1995 - April 30, 1996
From income $ 0.17
From capital gains $ -
Total distributions $ 0.17
Total return* +1.8%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1996 $ 6.05
Oct. 31, 1995 $ 6.11
Decrease $ 0.06
Distributions
Nov. 1, 1995 - April 30, 1996
From income $ 0.10
From capital gains $ -
Total distributions $ 0.10
Total return* +0.6%**
*The prospectus discusses the effect of sales
charges, if any, on the various classes.
**The total return is a hypothetical investment
in the Fund with all distributions reinvested.<PAGE>
PAGE
The Fund's ten largest holdings
Picture of pie chart: The ten holdings listed here make up 36.09%
of the Fund's net assets
_______________________________________________________________________
Percent Value
(of Fund's net assets) (as of April 30, 1996)
_______________________________________________________________________
U.S. Treasury 6.11% $43,192,118
7.50% Bond 2001-2016
United Kingdom Treasury 4.42 31,280,462
8% Bond 2003
Federal Republic of Germany 4.38 30,989,167
8% Bond 2002
Govt of Canada 3.68 26,007,935
10.50% Bond 2001
Govt of Italy 3.66 25,872,176
8.50% Bond 1999
Federal Republic of Germany 3.19 22,551,591
7.50% Bond 2004
Govt of Denmark 2.90 20,504,911
8% Bond 2003
U.S. Treasury 2.81 19,885,056
7.25% Bond 2004
Federal Republic of Germany 2.54 17,978,706
6% Bond 2016
United Kingdom Treasury 2.40 17,001,411
9% Bond 2000
Note: Certain foreign investment risks include: changes in currency
exchange rates, adverse political or economic order, and lack of similar
regulatory requirements followed by U.S. companies.
<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Global Bond Fund
April 30, 1996
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
(Unaudited)
Investments in securities, at value (Note 1)
(identified cost $694,643,406) $696,909,935
Receivable for investment securities sold 244,155
Dividends and accrued interest receivable 18,297,519
Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 6) 1,226,800
_____________________________________________________________________________________________________________
Total assets 716,678,409
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 1,085,838
Dividends payable to shareholders 2,895,449
Payable for investment securities purchased 5,200,116
Accrued investment management services fee 57,575
Accrued distribution fee 7,086
Accrued service fee 13,496
Accrued transfer agency fee 11,059
Accrued administrative services fee 4,266
Other accrued expenses 136,564
_____________________________________________________________________________________________________________
Total liabilities 9,411,449
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $707,266,960
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- $.01 par value (Note 1) $ 1,168,793
Additional paid-in capital 701,659,441
Undistributed net investment income 7,414
Accumulated net realized gain (Note 1) 1,832,322
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies (Notes 4 and 6) 2,598,990
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $707,266,960
_____________________________________________________________________________________________________________
Net asset applicable to outstanding shares: Class A $619,785,167
Class B $ 87,480,801
Class Y $ 992
Net asset value per share of outstanding capital stock: Class A shares 102,422,199 $ 6.05
Class B shares 14,456,979 $ 6.05
Class Y shares 164 $ 6.05
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statement of operations
IDS Global Bond Fund
Six months ended April 30, 1996
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Interest (net of foreign taxes withheld of $160,745) 21,785,117
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 2,415,813
Distribution fee -- Class B 226,790
Transfer agency fee 462,511
Incremental transfer agency fee -- Class B 3,375
Service fee
Class A 507,312
Class B 52,870
Administrative services fee 179,949
Compensation of board members 10,407
Compensation of officers 2,650
Custodian fees 141,547
Postage 38,876
Registration fees 87,713
Reports to shareholders 28,693
Audit fees 12,250
Administrative 2,112
Other 8,501
_____________________________________________________________________________________________________________
Total expenses 4,181,369
Earnings credits on cash balances (Note 2) (5,286)
_____________________________________________________________________________________________________________
Total net expenses 4,176,083
_____________________________________________________________________________________________________________
Investment income -- net 17,609,034
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including loss of $965,884 from foreign currency transactions) (Note 3) 5,246,949
Net realized gain on futures contracts 274,159
Net realized gain on closed or exercised option contracts written (Note 5) 26,300
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 5,547,408
Net change in unrealized appreciation or depreciation of investments and on
translation of assets and liabilities in foreign currencies (11,092,008)
_____________________________________________________________________________________________________________
Net loss on investments and foreign currency (5,544,600)
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $12,064,434
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Global Bond Fund
_____________________________________________________________________________________________________________
Operations and distributions April 30, 1996 Oct. 31, 1995
_____________________________________________________________________________________________________________
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income -- net $ 17,609,034 $ 30,591,389
Net realized gain on investments and foreign currency 5,547,408 1,677,365
Net change in unrealized appreciation or depreciation of investments (11,092,008) 31,801,594
and on translation of assets and liabilities in foreign currencies
_________________________________________________________________________________________________________________
Net increase in net assets resulting from operations 12,064,434 64,070,348
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (18,127,359) (27,871,717)
Class B (1,570,634) (547,216)
Class Y (8,622) (63,386)
Net realized gain
Class A -- (1,590,719)
Excess distribution of realized gain (Note 1)
Class A -- (5,020,075)
Class B -- (98,561)
Class Y -- (11,417)
_____________________________________________________________________________________________________________
Total distributions (19,706,615) (35,203,091)
_____________________________________________________________________________________________________________
Capital share transactions (Note 7)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 125,464,186 167,962,972
Class B shares 54,317,143 36,899,954
Class Y shares 62,000 1,971,042
Reinvestment of distributions at net asset value
Class A shares 16,634,419 30,567,749
Class B shares 1,341,951 467,515
Class Y shares 16 64,234
Payments for redemptions
Class A shares (64,072,013) (145,031,336)
Class B shares (Note 2) (4,168,117) (574,270)
Class Y shares (2,134,493) (20)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 127,445,092 92,327,840
_____________________________________________________________________________________________________________
Total increase in net assets 119,802,911 121,195,097
Net assets at beginning of period 587,464,049 466,268,952
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$7,414 and $2,104,995) $707,266,960 $587,464,049
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Notes to financial statements
IDS Global Bond Fund
(Unaudited as to April 30, 1996)
_______________________________________________________________________
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. The Fund invests primarily in debt securities of U.S.
and foreign issuers. The Fund offers Class A, Class B and Class Y
shares. Class A shares are sold with a front-end sales charge.
Class B shares may be subject to a contingent deferred sales charge
and such shares automatically convert to Class A after eight years.
Class Y shares have no sales charge and are offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation
and other rights, and the same terms and conditions, except that
the level of distribution fee, transfer agency fee and service
fee (class specific expenses) differs among classes. Income,
expenses (other than class specific expenses) and realized and
unrealized gains or losses on investments are allocated to each
class of shares based upon its relative net assets.
Significant accounting policies followed by the Fund are
summarized below:
Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statement and the reported amounts of
increase and decrease in net assets from operations during the
period. Actual results could differ from those estimates.
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. 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.
<PAGE>
PAGE
Option transactions
In order to produce incremental earnings, protect gains, and
facilitate buying and selling of securities for investment
purposes, the Fund may buy or write options traded on any U.S
or foreign exchange or in the over-the-counter market where
the completion of the obligation is dependent upon the credit
standing of the other party. The Fund also may buy and sell put
and call options and write covered call options on portfolio
securities and may write cash-secured put options. The risk
in writing a call option is that the Fund gives up the opportunity
of profit if the market price of the security increases.
The risk in writing a put option is that the Fund may incur a
loss if the market price of the security decreases and the
option is exercised. The risk in buying an option is that the
Fund pays a premium whether or not the option is exercised.
The Fund also has the additional risk of not being able to enter
into a closing transaction if a liquid secondary market does
not exist.
<PAGE>
Option contracts are valued daily at the closing prices on their
primary exchanges and unrealized appreciation or depreciation is
recorded. The Fund will realize a gain or loss upon expiration
or closing of the option transaction. When options on debt
securities or futures are exercised, the Fund will realize a
gain or loss. When other options are exercised, the proceeds on
sales for a written call option, the purchase cost for a written
put option or the cost of a security for a purchased put or call
option is adjusted by the amount of premium received or paid.
Futures transactions
In order to gain exposure to or protect itself from changes in the
market, the Fund may buy and sell 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 dividends, interest income and foreign
withholding taxes.
<PAGE>
The Fund may enter into forward foreign currency exchange contracts
for operational purposes and to protect against adverse exchange rate fluctuation. The net U.S. dollar value of foreign currency
underlying
all contractual commitments held by the Fund and the resulting
unrealized appreciation or depreciation are determined using foreign
currency exchange rates from an independent pricing service. The Fund
is subject to the credit risk that the other party will not complete
the obligations of the contract.
Federal taxes
Since the Fund's policy is to comply with all sections of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders, no provision
for income or excise taxes is required.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes primarily because
of the deferral of losses on certain futures contracts, the
recognition of certain foreign currency gains (losses) as
ordinary income (loss) for tax purposes and losses deferred
due to "wash sale" transactions. The character of distributions
made during the year from net investment income or net realized
gains may differ from their ultimate characterization for federal
income tax purposes. The effect on dividend distributions of
certain book-to-tax differences is presented as "excess
distributions" in the statement of changes in net assets.
Also, due to the timing of dividend distributions, the fiscal
year in which amounts are distributed may differ from the year
that the income or realized gains (losses) were recorded
by the Fund.
Dividends to shareholders
Dividends from net investment income, declared daily and paid
each calendar quarter, are reinvested in additional shares of
the Fund at net asset value or payable in cash. Capital gains,
when available, are distributed along with the last income
dividend of the calendar year.
<PAGE>
PAGE
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
Effective March 20, 1995, the Fund entered into agreements with
American Express Financial Corporation (AEFC) for managing its
portfolio, providing administrative services and serving as transfer
agent as follows: Under its Investment Management Services Agreement,
AEFC determines which securities will be purchased, held or sold.
The management fee is a percentage of the Fund's average daily net
assets in reducing percentages from 0.77% to 0.67% annually.
Under an Administrative Services Agreement, the Fund pays AEFC for administration and accounting services at a percentage of the
Fund's
average daily net assets in reducing percentages from 0.06% to 0.04%
annually.
Under a separate Transfer Agency Agreement, AEFC maintains
shareholder accounts and records. The Fund pays AEFC an annual
fee per shareholder account for this service as follows:
o Class A $15.50
o Class B $16.50
o Class Y $15.50
Also effective March 20, 1995, the Fund entered into agreements with
American Express Financial Advisors Inc. for distribution and
shareholder servicing-related services as follows: Under a Plan and
Agreement of Distribution, the Fund pays a distribution fee at an
annual rate of 0.75% of the Fund's average daily net assets
attributable to Class B shares for distribution-related services.
Under a Shareholder Service Agreement, the Fund pays a fee for
service provided to shareholders by financial advisors and other
servicing agents. The fee is calculated at a rate of 0.175% of
the Fund's average daily net assets attributable to Class A and
Class B shares.
AEFC will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges received by American Express Financial Advisors Inc.
for distributing Fund shares were $1,972,238 for Class A and $15,291
for Class B for the six months ended April 30, 1996. The Fund also
pays custodian fees to American Express Trust Company, an affiliate
of AEFC.
During the six months ended April 30, 1996, the Fund's custodian
and transfer agency fees were reduced by $5,286 as a result of
earnings credits from overnight cash balances.
The Fund had a retirement plan for its independent board members.
Upon retirement, board members receive monthly payments equal to
one-half of the retainer fee for as many months as they served as
board members 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 board members serve on the board.
The retirement plan expense amounted to $1,344 for the six months
ended April 30, 1996. The plan was terminated April 30, 1996.
The total liability for the plan is $12,376, which will be paid
out at some future date.<PAGE>
PAGE
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $238,311,987 and $132,720,720, respectively, for the six months ended April 30, 1996.
Realized gains
and losses are determined on an identified cost basis.
Income from securities lending amounted to $551 for the six months
ended April 30, 1996. The risk to the Fund of securities lending
are that the borrower may not provide additional collateral when
required or return the securities when due.
______________________________________________________________________________
4. Interest rate futures contracts
At April 30, 1996, investments in securities included securities
valued at $3,666,655 that were pledged as collateral to cover initial
margin deposits on 100 purchased contracts. The market value of the
open contracts on April 30, 1996 was $10,915,625 with a net
unrealized loss of $14,375.
_____________________________________________________________________________
5. Option contracts written
</TABLE>
<TABLE>
<CAPTION>
The number of contracts and premium amounts associated
with option contracts written is as follows:
Six months ended April 30, 1996
______________________________________________________
Puts
Contracts Premium
______________________________________________________________________________
<S> <C> <C>
Balance Oct. 31, 1995 -- $ --
Opened 150 279,250
Closed (140) (260,300)
Exercised (10) (18,950)
Expired -- --
______________________________________________________________________________
Balance April 30, 1996 -- $ --
______________________________________________________________________________
/TABLE
<PAGE>
PAGE
6. Foreign currency contracts
At April 30, 1996, the Fund had entered into eight foreign currency
exchange contracts that obligate the Fund to deliver currencies at
specified future dates. The unrealized appreciation and/or
depreciation on these contracts are included in the accompanying
financial statements. The terms of the open contracts are as
follows:
<TABLE>
<CAPTION>
Exchange date Currency to be Currency to be Unrealized
delivered received appreciation
____________________________________________________________________________________________________
<S> <C> <C> <C>
May 7, 1996 7,971,963 853,000,000 $ 188,112
U.S. Dollar Japanese Yen
May 9, 1996 3,972,783 17,643,128 111,248
U.S. Dollar Japanese Yen
May 13, 1996 17,425,000 11,647,727 256,158
Deutsche Mark U.S. Dollar
May 13, 1996 17,750,000 11,853,959 249,922
Deutsche Mark U.S. Dollar
May 15, 1996 9,000,000 6,004,403 119,973
Deutsche Mark U.S. Dollar
May 16, 1996 6,705,000 5,292,927 30,105
Australian Dollar U.S. Dollar
May 21, 1996 9,250,000 6,129,684 79,425
Deutsche Mark U.S. Dollar
May 28, 1996 9,795,434 1,041,000,000 191,857
U.S. Dollar Japanese Yen ____________
$1,226,800
<PAGE>
7. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
Six months ended April 30, 1996
Class A Class B Class Y
________________________________________________________________________________________
Sold 20,462,576 8,862,257 10,116
Issued for reinvested 2,713,391 219,347 2
distributions
Redeemed (10,471,482) (682,996) (348,830)
_______________________________________________________________________________________
Net increase (decrease) 12,704,485 8,398,608 (338,712)
_______________________________________________________________________________________
Year ended Oct. 31, 1995
Class A Class B* Class Y*
________________________________________________________________________________________
Sold 28,365,320 6,075,865 328,333
Issued for reinvested 5,162,365 77,021 10,547
distributions
Redeemed (24,752,357) (94,515) (4)
_______________________________________________________________________________________
Net increase 8,775,328 6,058,371 338,876
_______________________________________________________________________________________
*Inception date was March 20, 1995.
</TABLE>
_______________________________________________________________________________
8. Illiquid securities
At April 30, 1996, investments in securities included issues
that are illiquid. The Fund currently limits investments in illiquid
securities to 10% of the net assets, at market value, at the time of
purchase. The aggregate value of such securities at April 30, 1996
was $1,900,000 representing 0.3% of net assets. Pursuant to
guidelines adopted by the Fund's board, certain unregistered
securities are determined to be liquid and are not included within
the 10% limitation specified above.
_______________________________________________________________________________
<PAGE>
PAGE
9.Financial highlights
<TABLE>
<CAPTION>
The tables below show certain important financial
information for evaluating the Fund's results.
Fiscal period ended Oct. 31,
Per share income and capital changes*
Class A
1996** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $6.11 $5.76 $6.27 $5.91 $5.58 $5.46
beginning of period
Income from investment operations:
Net investment income .18 .35 .36 .26 .33 .50
Net gains (losses) (.04) .41 (.45) .62 .47 .12
(both realized
and unrealized)
Total from investment .14 .76 (.09) .88 .80 .62
operations
Less distributions:
Dividends from net (.20) (.33) (.35) (.27) (.30) (.50)
investment income
Distributions from -- (.02) (.07) (.10) (.06) --
realized gains
Excess distributions of -- (.06) -- (.15) (.11) --
realized gains
Total distributions (.20) (.41) (.42) (.52) (.47) (.50)
Net asset value, $6.05 $6.11 $5.76 $6.27 $5.91 $5.58
end of period
Ratios/supplemental data
Class A
1996** 1995 1994 1993 1992 1991
Net assets, end of period $620 $548 $466 $255 $91 $50
(in millions)
Ratio of expenses to 1.22%+ 1.25% 1.26% 1.31% 1.39% 1.34%
average daily net assets
Ratio of net income 5.52%+ 6.15% 5.56% 5.11% 6.50% 7.15%
to average daily net assets
Portfolio turnover rate 24% 92% 64% 90% 160% 123%
(excluding short-term
securities)
Total return++ 2.2% 13.6% (1.5%) 15.8% 14.8% 11.9%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended April 30, 1996 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
<PAGE>
Financial highlights
Fiscal period ended Oct. 31,
Per share income and capital changes*
Class B Class Y
1996*** 1995** 1996*** 1995**
Net asset value, $6.11 $5.74 $6.11 $5.74
beginning of period
Income from investment operations:
Net investment income .15 .24 .08 .27
Net gains (losses) (.04) .41 (.04) .41
(both realized
and unrealized)
Total from investment .11 .65 .04 .68
operations
Less distributions:
Distributions from net (.17) (.24) (.10) (.27)
investment income
Excess distributions of -- (.04) -- (.04)
realized gains
Total distributions (.17) (.28) (.10) (.31)
Net asset value, $6.05 $6.11 $6.05 $6.11
end of period
Ratios/supplemental data
Class B Class Y
1996*** 1995** 1996*** 1995**
Net assets, end of period $87 $37 $-- $2
(in millions)
Ratio of expenses to 1.99%+ 2.05%+ 1.01%+ 1.10%+
average daily net assets
Ratio of net income 4.72%+ 5.88%+ 5.97%+ 6.68%+
to average daily net assets
Portfolio turnover rate 24% 92% 24% 92%
(excluding short-term
securities)
Total return++ 1.8% 11.5% 0.6% 12.0%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B and Class Y.
***Six months ended April 30, 1996 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
</TABLE>
<PAGE>
PAGE
<TABLE>
Investments in securities
IDS Global Bond Fund (Percentages represent value of
April 30, 1996 (Unaudited) investments compared to net assets)
<CAPTION>
_____________________________________________________________________________________________________________________________
Bonds (84.2%)(b)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Argentina (3.0%)
Argentina Euro
(U.S. Dollar) 6.50 % 2005 $16,000,000 (c) $ 12,210,000
Argentina Republic
(U.S. Dollar) 5.25 2023 16,500,000 8,982,187
____________
Total 21,192,187
_____________________________________________________________________________________________________________________________
Australia (2.7%)
Govt of Australia
(Australian Dollar) 7.50 2005 19,500,000 14,203,369
8.75 2001 6,400,000 5,099,516
___________
Total 19,302,885
_____________________________________________________________________________________________________________________________
Austria (3.8%)
Asian Development Bank
(Japanese Yen) 5.00 2003 213,000,000 2,260,215
Autobahn Schnell
(Japanese Yen) 6.00 2000 397,000,000 4,298,097
IADB
(Japanese Yen) 6.00 2001 59,000,000 653,565
Intl Bank Reconstruction & Development
(Japanese Yen) 4.50 1997 1,440,000,000 14,480,179
Republic of Austria Euro
(Japanese Yen) 5.25 1998 540,000,000 5,504,274
______________
Total 27,196,330
_____________________________________________________________________________________________________________________________
Brazil (0.9%)
Brazil DCB Bonds
(U.S. Dollar) 6.875 2012 10,000,000 6,456,250
_____________________________________________________________________________________________________________________________
Canada (4.6%)
Govt of Canada
(Canadian Dollar) 8.00 2023 7,000,000 5,015,060
10.50 2001 31,000,000 26,007,935
Rogers Cable System
(Canadian Dollar) 9.65 2014 2,000,000 1,263,545
______________
Total 32,286,540
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
China (1.3%)
Bank of China
(U.S. Dollar) 8.25 2014 5,000,000 4,561,950
Guang Dong Province Enterprises
(U.S. Dollar) 8.75 2003 5,000,000 (d) 4,547,850
_____________
Total 9,109,800
_____________________________________________________________________________________________________________________________
Colombia (0.5%)
Republic of Colombia
(U.S. Dollar) 7.25 2004 4,100,000 3,811,155
_____________________________________________________________________________________________________________________________
Denmark (4.0%)
Govt of Denmark
(Danish Krone) 8.00 2003 113,200,000 20,504,911
9.00 2000 40,000,000 7,577,021
______________
Total 28,081,932
_____________________________________________________________________________________________________________________________
Finland (0.3%)
City of Helsinki
(U.S. Dollar) Sr Nts 7.90 2006 2,000,000 (g) 1,900,000
_____________________________________________________________________________________________________________________________
France (0.7%)
Govt of France
(European Currency Unit) 7.75 2005 3,710,000 4,772,318
_____________________________________________________________________________________________________________________________
Germany (11.3%)
Federal Republic of Germany
(Deutsche Mark) 6.00 2016 30,700,000 17,978,706
6.375 1998 12,200,000 8,392,133
7.50 2004 31,870,000 22,551,591
8.00 2002 42,480,000 30,989,167
_______________
Total 79,911,597
_____________________________________________________________________________________________________________________________
Indonesia (0.6%)
Pt Indah Kiat Euro
(U.S. Dollar) 8.875 2000 2,500,000 2,375,000
Tjiwi Kimia
(U.S. Dollar) 13.25 2001 2,000,000 2,190,000
_______________
Total 4,565,000
_____________________________________________________________________________________________________________________________
Italy (6.3%)
Govt of Italy
(Italian Lira) 8.50 1999-04 62,450,000,000 39,007,001
Republic of Italy
(U.S. Dollar) 6.875 2023 6,000,000 5,271,840
__________
Total 44,278,841
______________________________________________________________________________________________________________________________
<PAGE>
Japan (3.4%)
Euro Investment Bank
(Japanese Yen) 5.875 1999 380,000,000 4,086,801
Japan Development Bank
(Japanese Yen) 6.50 2001 1,370,000,000 15,511,620
Matsushita Electric
(Japanese Yen) Cv 1.30 1999 325,000,000 3,103,818
Nippon Express
(Japanese Yen) Cv 1.00 2004 120,000,000 1,242,388
____________
Total 23,944,627
_____________________________________________________________________________________________________________________________
Korea (1.4%)
Korea Electric Power
(U.S. Dollar) 7.75 2013 10,000,000 9,832,800
_____________________________________________________________________________________________________________________________
Mexico (2.6%)
BNCE
(U.S. Dollar) 7.25 2004 17,750,000 14,754,687
United Mexican States
(U.S. Dollar) 6.25 2019 6,000,000 3,975,000
____________
Total 18,729,687
______________________________________________________________________________________________________________________________
New Zealand (2.3%)
Govt of New Zealand
(New Zealand Dollar) 6.50 2000 25,135,000 15,948,433
_____________________________________________________________________________________________________________________________
Poland (1.6%)
Govt of Poland Discount Euro
(U.S. Dollar) 6.81 2024 12,100,000 11,245,437
______________________________________________________________________________________________________________________________
Spain (4.3%)
Govt of Spain
(Spanish Peseta) 4.625 2004 575,000,000 5,970,973
7.40 1999 1,470,000,000 11,363,761
8.00 2004 1,755,000,000 12,984,929
____________
Total 30,319,663
_____________________________________________________________________________________________________________________________
Sweden (0.9%)
Kingdom of Sweden
(Swedish Krona) 3.875 1999 600,000,000 6,051,330
_____________________________________________________________________________________________________________________________
Switzerland (0.2%)
Zurich Insurance Euro
(U.S. Dollar) Cv 1.00 2003 2,000,000 (d) 1,582,500
_____________________________________________________________________________________________________________________________
South Africa (0.5%)
Republic of South Africa
(South African Commercial Rand) 12.50 2002 19,000,000 3,833,283
_____________________________________________________________________________________________________________________________
<PAGE>
United Kingdom (9.6%)
Abbey Natl
(U.S. Dollar) 8.20 2004 5,000,000 5,315,350
United Kingdom Treasury
(British Pound) 8.00 2003 20,550,000 31,280,462
8.50 2005 9,200,000 14,297,996
9.00 2000 10,700,000 17,001,411
_____________
Total 67,895,219
_____________________________________________________________________________________________________________________________
United States (17.0%)
Chesapeake
(U.S. Dollar) 9.875 2003 1,000,000 1,135,530
Cleveland Electric Illuminating
(U.S. Dollar) 9.50 2005 3,000,000 2,965,980
Dayton Hudson
(U.S. Dollar) 8.50 2022 3,265,000 3,207,275
General Motors
(U.S. Dollar) 9.125 2001 2,000,000 2,185,860
Georgia-Pacific
(U.S. Dollar) Credit Sensitive Nts 9.85 1997 500,000 516,550
Pacific Bell
(U.S. Dollar) 8.50 2031 5,000,000 5,182,950
Pacific Gas & Electric
(U.S. Dollar) 7.25 2026 6,000,000 5,444,940
PDV America
(U.S. Dollar) 7.875 2003 3,500,000 3,240,510
Phillips Petroleum
(U.S. Dollar) 7.92 2023 3,115,000 3,014,043
Questar Pipeline
(U.S. Dollar) 9.375 2021 1,000,000 1,091,980
Reliance Inds
(U.S. Dollar) 8.125 2005 3,000,000 (d) 2,918,340
Resolution Funding Corp
(U.S. Dollar) Zero Coupon 8.00 2016 3,259,000 (e) 765,898
Southern California Gas
(U.S. Dollar) 7.375 2023 900,000 856,143
Tele-Communications
(U.S. Dollar) 7.875 2013 4,200,000 3,806,082
Texas Utilities
(U.S. Dollar) 1st Mtge 9.75 2021 500,000 552,055
U.S. Treasury
(U.S. Dollar) 4.75 1998 14,535,000 14,112,904
7.25 2004 19,200,000 (f) 19,885,056
7.50 2001-16 41,300,000 43,192,118
7.625 2022 6,000,000 (f) 6,381,180
____________
Total 120,455,394
_____________________________________________________________________________________________________________________________
Venezuela (0.4%)
Govt of Venezuela Euro
(U.S. Dollar ) 6.81 2007 4,000,000 2,642,500
_____________________________________________________________________________________________________________________________
Total bonds
(Cost: $593,072,149) $595,345,708
_____________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term securities (14.4%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agency (0.4%)
Federal Home Loan Mtge Corp
Disc Nt
05-20-96 5.20% $2,400,000 $ 2,393,438
_____________________________________________________________________________________________________________________________
Commercial paper (13.4%)
Aon
05-06-96 5.29 2,338,000 2,336,295
BellSouth
06-06-96 5.30 4,600,000 4,575,712
BOC Group
05-06-96 5.35 2,900,000 1,398,138
05-10-96 5.34 1,400,000 (h) 2,897,853
Cargill
05-15-96 5.34 2,500,000 2,494,828
05-29-96 5.30 6,400,000 (h) 6,373,717
Ciesco LP
05-24-96 5.32 2,500,000 (h) 2,491,567
CPC Intl
05-08-96 5.37 1,100,000 (h) 1,098,858
Fleet Funding
05-15-96 5.34 2,900,000 (h) 2,894,000
Gannett
05-16-96 5.34 6,500,000 (h) 6,485,591
05-23-96 5.30 5,800,000 (h) 5,781,285
Gateway Fuel
05-08-96 5.36 5,500,000 5,494,300
Goldman Sachs
05-29-96 5.32 4,200,000 4,182,687
Metlife Funding
05-02-96 5.35 2,700,000 2,699,601
05-21-96 5.35 5,700,000 5,683,153
06-06-96 5.30 3,300,000 3,282,576
Natl Bank Detroit Canada
05-01-96 5.37 4,100,000 4,100,000
PACCAR Financial
05-28-96 5.30 5,200,000 5,179,408
Pacific Mutual
05-03-96 5.33 2,700,000 2,699,202
Penney (JC) Funding
05-14-96 5.20 5,400,000 5,387,408
SAFECO Credit
06-05-96 5.31 1,600,000 1,591,787
St. Paul Companies
05-07-96 5.34 500,000 (h) 499,557
Southwestern Bell Capital
05-02-96 5.32 1,400,000 (h) 1,399,794
05-17-96 5.33 1,000,000 (h) 997,649
Southwestern Bell Telephone
06-27-96 5.34 4,428,000 4,388,841
Toyota Motor Credit
06-07-96 5.31 900,000 895,116
USAA Capital
05-22-96 5.35 4,900,000 4,884,794
USL Capital
05-03-96 5.38 2,500,000 2,499,257
____________
Total 94,692,974
_____________________________________________________________________________________________________________________________
Letters of credit (0.6%)
Domestic (0.3%)
Bank of New York-
Riverfuel
05-31-96 5.32 2,000,000 (h) 1,991,167
Foreign (0.3%)
Credit Suisse-
Cosco
05-31-96 5.32 2,500,000 2,486,648
_____________
Total 4,477,815
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $101,571,257) $101,564,227
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $694,643,406)(i) $696,909,935
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated
in the currency indicated.
(c) Interest rate varies, rate shown is the effective rate on April 30, 1996.
(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.
(e) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on
the date of acquisition.
(f) Partially pledged as initial deposit on the following open interest rate futures purchase contracts
(see Note 4 to the financial statements):
Type of security Notional
amount
____________________________________________________________________________________
June T-Bond futures $10,000,000
(g) Identifies issues considered to be illiquid (see Note 8 to the financial statements).
Information concerning such holdings at April 30, 1996, is as follows:
Security Acquisition Cost
date
___________________________________________________________________________________
City of Helsinki
(U.S. Dollar) Sr. Nts 02-07-95 $1,844,000
(h) Commercial paper sold within terms of a private placement memorandum, exempt from registration under
Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that
program or other "accredited investors." This security has been determined to be liquid under
guidelines established by the board.
(i) At April 30, 1996, the cost of securities for federal income tax purposes was approximately $693,703,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that
cost was:
Unrealized appreciation $16,123,000
Unrealized depreciation (12,916,000)
_____________________________________________________________________________
Net unrealized appreciation $ 3,207,000
_____________________________________________________________________________
/TABLE
<PAGE>
PAGE
Board members and officers
Board members and officers of the Fund
_____________________________________________________________________
President and interested board member
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent board members
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Readers's Digest Association, Inc.
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board, The Valspar Corporation.
_____________________________________________________________________
Interested board members who are officers and/or employees of AEFC
William H. Dudley
Executive vice president, AEFC.
David R. Hubers
President and chief executive officer, AEFC.
John R. Thomas
Senior vice president, AEFC.
_____________________________________________________________________
Officers who also are officers and/or employees of AEFC
Peter J. Anderson
Vice President of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
___________________________________________________________________
Other officer
Leslie L. Ogg
Vice president, general counsel and secretary of all funds in
the IDS MUTUAL FUND GROUP.
<PAGE>
PAGE
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposit (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income.
Secondary objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) two coins<PAGE>
PAGE
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher rated,
lower risk bond categories, or the equivalent, and in government bonds.
(icon of) greek column
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the timely
payment of principal and interest by the U.S. government, its agencies
and instrumentalities. Seeks a high level of current income and
safety of principal consistent with its type of investments.
(icon of) shield with eagle head
Tax-exempt income investments
These funds provide tax-free income by investing in municipal bonds.
The income is generally free from federal income tax. Risk varies
by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed<PAGE>
PAGE
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities
to provide income to residents of each respective state that is
exempt from federal, state and local income taxes. (New York
is the only state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk bond
categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with star
Growth and income investments
These funds focus on securities of medium to large, well-established
companies that offer long-term growth of capital and reasonable income
from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20%
of its assets in the U.S. market.
(icon of) three flags
IDS Managed Retirement Fund
Invests in U.S. equity securities, U.S. and foreign debt
securities, foreign equity securities and money market
instruments. The fund provides diversification among these
major investments categories and has a target mix that
represents the way the fund's investments will be allocated
over the long term.
(icon of) bird in a nest
<PAGE>
PAGE
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of
capital and income.
(icon of) three pine trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) light bulb
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) two puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice<PAGE>
PAGE
Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy.
These companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth
potential due to superiority in technology, marketing or management.
The fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
<PAGE>
PAGE
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic companies
that explore for, mine and process or distribute gold and other
precious metals. This is the most aggressive and most speculative
IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your financial
advisor or writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534. Read it carefully before you invest or send money.
<PAGE>
PAGE
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota:
800-437-3133
Mpls./St. Paul area:
671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Global Bond Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
1996 semiannual report
IDS
Global Growth
Fund
(icon of globe)
The goal of IDS Global Growth Fund, a part of IDS Global Series, Inc., is
long-term growth of capital. The Fund invests primarily in common stocks
and securities convertible into common stocks of companies throughout
the world.
Distributed by American Express Financial Advisors Inc.
It's a big world after all
No one needs to be told that the world is changing rapidly. For example,
some years ago U.S. stocks accounted for about two-thirds of the total
value of stocks worldwide. Today, that figure is down to about one-third,
as many foreign stock markets have enjoyed explosive growth. Global
Growth Fund seeks to take advantage of that trend by investing in
companies throughout the world, not just the United States. For the most
part, these are fast-growing foreign companies involved in essential
businesses such as infrastructure creation, finance and environmental
clean-up. As they prosper, Global Growth Fund offers investors the
potential to prosper along with them.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 28
Board members and officers 36
IDS mutual funds 37
To our shareholders
William R. Pearce
President of the Fund
(picture of William R. Pearce)
Richard Lazarchic
Portfolio manager
(picture of Richard Lazarchic)
From the president
If you're an experienced investor, you know that 1995 and the opening
months of 1996 were an unusually strong period for the U.S. stock market.
Perhaps just as important, you also know that history shows that bull
markets don't last forever. Though they're often unpredictable,
declines - whether they're brief or long-lasting, moderate or
substantial - are always a possibility.
That fact reinforces the need for investors to periodically review their
long-term goals and examine whether their investment program remains on
track to achieving them. Your quarterly investment statements are one
part of that monitoring process. The other is a meeting with your
American Express financial advisor. That becomes even more important
if there's a major change in your financial situation or in the financial
markets.
William R. Pearce
From the portfolio manager
A repositioned portfolio and turnarounds in several foreign stock markets
led to a strong performance by IDS Global Growth Fund during the first
half of the fiscal year. For shareholders, that meant a total return of
more than 17% for the November 1995 through April 1996 period. (The total
return includes a capital gain paid to shareholders last December, which
reduced the Fund's net asset value by a like amount at that time. Please
consult the table on the accompanying page for the exact return for your
share class.)
You may recall that in our previous report to shareholders six months ago,
we said that we expected returns from foreign stock markets to improve in
the months ahead. As it turned out, the timing of that forecast happened
to be right in line with the beginning of the Fund's fiscal year. Although
some foreign markets had already established forward momentum, the bulk
of the upturn began last November and continued largely without
interruption through April.
'Emerging' markets stage comeback
The advance was led by so-called "emerging" markets - those in either
smaller or lesser-developed countries such as in Latin America and
Southeast Asia. (True to their usually volatile nature, they had advanced
powerfully in 1993, only to nose dive the following year.) Among the larger,
more-established markets, Japan also managed a good performance, while
Europe as a whole remained relatively unproductive.
Our portfolio was in good position to benefit from those conditions
because, prior to last fall, we substantially trimmed out holdings in
Europe, chiefly in France and Germany, and increased our exposure to
Southeast Asia (including Singapore, Malaysia and Thailand), Latin America
(including Mexico, Argentina and Brazil) and Japan. In addition, we
broadened the scope of the portfolio to include more stocks of companies
in the consumer products and natural resource sectors. Regardless of
industry, we also focused more on stocks of companies with consistent,
above-average earnings growth, while avoiding those whose fortunes depend
largely on the strength of the local economy. That strategy also worked to
the Fund's advantage. Early on, repositioning the portfolio generated an
excess of cash reserves (nearly 20% of assets), but we gradually put that
money to work in stocks, bringing cash down.
Prospects still bright
Although the U.S. stock market put on a spectacular show in 1995, we
believe that foreign markets may be the better performer this year and
next. As for this Fund, we plan to stay basically with what has generated
our recent success - a primary emphasis on emerging markets complemented
by selected exposure to Europe and Japan. We still favor consumer
products companies that address the improving living standards in
less-developed countries and natural resources companies, especially
metals and energy.
Beyond that, we're considering adding some government-owned companies,
including utilities, that are being turned into private businesses. In
the meantime, we hope you share our optimism for foreign investing,
and we look forward to reporting on our progress at the conclusion of
the fiscal year.
Richard Lazarchic
<PAGE>
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
_____________________________
April 30, 1996 $ 7.32
_____________________________
Oct. 31, 1995 $ 6.37
_____________________________
Increase $ 0.95
_____________________________
Distributions
Nov. 1, 1995 - April 30, 1996
_____________________________
From income $ 0.13
____________________________
From capital gains $ 0.03
____________________________
Total distributions $ 0.16
____________________________
Total return* +17.8%**
____________________________
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
April 30, 1996 $ 7.27
____________________________
Oct. 31, 1995 $ 6.34
____________________________
Increase $ 0.93
____________________________
Distributions
Nov. 1, 1995 - April 30, 1996
____________________________
From income $ 0.12
____________________________
From capital gains $ 0.03
____________________________
Total distributions $ 0.15
____________________________
Total return* +17.4%**
____________________________
<PAGE>
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
April 30, 1996 $ 7.33
____________________________
Oct. 31, 1995 $ 6.38
____________________________
Increase $ 0.95
____________________________
Distributions
Nov. 1, 1995 - April 30, 1996
____________________________
From income $ 0.14
____________________________
From capital gains $ 0.03
____________________________
Total distributions $ 0.17
____________________________
Total return* +17.9%**
____________________________
*The prospectus discusses the effect
of sales charges, if any, on the various
classes.
**The total return is a hypothetical
investment in the Fund with all distributions
reinvested.
PAGE
<TABLE>
<CAPTION>
IDS Global Growth Fund
The Fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 11.08% of the Fund's net assets
Percent Value
(of Fund's net assets) (as of April 30, 1996)
<S> <C> <C>
Renong (Malaysia) 1.25% $11,550,000
2.50% Cv Bond 2005
Engaged in the engineering, construction and operation of
major infrastruction projects in Malaysia.
Cie Generale Des Eaux (France) 1.17 10,869,775
The parent company of a multinational, diversified group of
approximately 2,500 service companies catering to the needs of
communities, public institutions and private businesses of all sizes.
Stillwater Mining (United States) 1.16 10,800,000
Explores, develops, mines and produces platinum, palladium and
associated metals from the Stillwater Complex located in the
Beartooth Mountains in Southern Montana.
Renaissance Energy (Germany) 1.14 10,563,820
This company is engaged in the acquisition of petroleum and natural
gas rights and the exploration, development and production of oil and
natural gas.
Telefonica de Espana ADR (Spain) 1.13 10,525,000
Engaged in the provision of public and private telecommunication
services in Spain. Through its subsidiaries, this company also
participates in the design and production of a variety of products and
services in the telecommunications and information industries.
PT Tambang Timah (Indonesia) 1.11 10,313,994
The world's largest tin producer.
Ladbroke Group (United States) 1.08 9,999,080
Operates hotels worldwide and retail gambling casinos in the
United Kingdom, Ireland, Belgium and the United States.
Hoganas Cl B (Sweden) 1.07 9,952,082
The world's leading producer of metal powder with a market share of
over 50% in key global markets.
Comp Naviera Perez ADR (Argentina) 1.01 9,330,000
A conglomerate that is involved in gas and oil exploration and
production, petrochemical refining, telecommunications, power
generation, agriculture, forestry and construction.
Mitsubishi Heavy Inds (Japan) .96 8,928,827
Japan's largest shipbuilder and comprehensive machinery maker. Its
lines range from ships and nuclear power plants to aerospace and
military equipment.
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
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Global Growth Fund
April 30, 1996
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
(Unaudited)
<S> <C>
Investments in securities, at value (Note 1):
Investments in securities of unaffiliated issuers (identified cost $889,110,876) $ 965,953,256
Investments in securities of affiliated issuers (identified cost $8,017,232) 8,081,454
Cash in bank on demand deposit 149,283
Dividends and accrued interest receivable 6,007,914
Receivable for investment securities sold 16,873,786
Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 4) 639,758
U.S. government securities held as collateral (Note 5) 4,757,397
_____________________________________________________________________________________________________________
Total assets 1,002,462,848
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Payable for investment securities purchased 30,418,225
Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 4) 698,942
Payable upon return of securities loaned (Note 5) 43,308,497
Accrued investment management services fee 76,983
Accrued distribution fee 5,897
Accrued service fee 17,231
Accrued transfer agency fee 20,214
Accrued administrative services fee 5,344
Other accrued expenses 174,386
_____________________________________________________________________________________________________________
Total liabilities 74,725,719
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $ 927,737,129
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- $.01 par value (Note 1) $ 1,267,813
Additional paid-in capital 791,131,129
Undistributed net investment income 4,849,603
Accumulated net realized gain (Note 1) 49,935,195
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies (Notes 4 and 7) 80,553,389
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $ 927,737,129
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $ 835,547,071
Class B $ 73,950,773
Class Y $ 18,239,285
Net asset value per share of outstanding capital stock: Class A shares 114,124,832 $ 7.32
Class B shares 10,166,545 $ 7.27
Class Y shares 2,489,908 $ 7.33
See accompanying notes to financial statements.
PAGE
Financial statements
Statement of operations
IDS Global Growth Fund
Six months ended April 30, 1996
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Dividends (net of foreign taxes withheld of $498,118) $ 3,517,880
Interest 3,783,462
_____________________________________________________________________________________________________________
Total income 7,301,342
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 2,984,968
Distribution fee -- Class B 148,483
Transfer agency fee 860,967
Incremental transfer agency fee -- Class B 4,007
Service fee
Class A 619,215
Class B 34,573
Administrative services fee 210,748
Compensation of board members 10,370
Compensation of officers 3,326
Custodian fees 543,527
Postage 82,128
Registration fees 85,024
Reports to shareholders 47,615
Audit fees 11,500
Administrative 2,788
Other 9,050
_____________________________________________________________________________________________________________
Total expenses 5,658,289
Earnings credits on cash balances (Note 2) (3,707)
_____________________________________________________________________________________________________________
Total net expenses 5,654,582
_____________________________________________________________________________________________________________
Investment income -- net 1,646,760
_____________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________
Net realized gain on security and foreign currency transactions
(including gain of $3,625,062 from foreign currency transactions) (Note 3) 46,042,511
Net realized gain on stock index futures contracts 3,199,297
_____________________________________________________________________________________________________________
Net realized gain on investments and foreign currency 49,241,808
Net change in unrealized appreciation or depreciation of investments and on
translation of assets and liabilities in foreign currencies 79,261,924
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 128,503,732
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $130,150,492
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Global Growth Fund
_____________________________________________________________________________________________________________
Operations and distributions April 30, 1996 Oct. 31, 1995
Six months ended Year ended
(Unaudited)
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 1,646,760 $ 10,845,781
Net realized gain on investments and foreign currency 49,241,808 2,037,383
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 79,261,924 (59,607,264)
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations 130,150,492 (46,724,100)
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (13,273,358) (4,548,940)
Class B (512,014) --
Class Y (423,874) --
Net realized gain
Class A (3,145,261) (5,265,856)
Class B (134,517) --
Class Y (93,987) --
_____________________________________________________________________________________________________________
Total distributions (17,583,011) (9,814,796)
_____________________________________________________________________________________________________________
Capital share transactions (Note 6)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 289,860,463 349,901,545
Class B shares 48,438,247 22,236,244
Class Y shares 8,278,153 28,305,289
Reinvestment of distributions at net asset value
Class A shares 16,289,011 9,752,256
Class B shares 642,023 --
Class Y shares 517,861 --
Payments for redemptions
Class A shares (233,600,576) (312,991,564)
Class B shares (Note 2) (2,723,297) (557,491)
Class Y shares (16,295,773) (6,322,878)
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 111,406,112 90,323,401
_____________________________________________________________________________________________________________
Total increase in net assets 223,973,593 33,784,505
Net assets at beginning of period 703,763,536 669,979,031
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$4,849,603 and $17,412,089) $ 927,737,129 $ 703,763,536
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE
Notes to financial statements
IDS Global Growth Fund
(Unaudited as to April 30, 1996)
______________________________________________________________________________
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. The Fund invests
primarily in common stocks and securities convertible into common stocks of
companies throughout the world. The Fund offers Class A, Class B and Class Y
shares. Class A shares are sold with a front-end sales charge. Class B shares
may be subject to a contingent deferred sales charge and such shares
automatically convert to Class A after eight years. Class Y shares have no
sales charge and are offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation and other
rights, and the same terms and conditions, except that the level of
distribution fee, transfer agency fee and service fee (class specific
expenses) differs among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
Significant accounting policies followed by the Fund are summarized below:
Use of estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the period. Actual results could differ from those estimates.
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. 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.
<PAGE>
PAGE
Option 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.
Futures transactions
In order to gain exposure to or protect itself from changes in the market, the
Fund may buy and sell futures contracts traded on any U.S. or foreign
exchange. The Fund also may buy or write put and call options 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.
<PAGE>
PAGE
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 dividends, interest income and foreign withholding taxes.
The Fund may enter into forward foreign currency exchange contracts for
operational purposes and to protect against adverse exchange rate fluctuation.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates from an
independent pricing service. The Fund is subject to the credit risk that the
other party will not complete the obligations of the contract.
Federal taxes
Since the Fund's policy is to comply with all sections of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to shareholders, no provision for income or excise taxes is
required.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily because of the deferral of
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. Also,
due to the timing of dividend distributions, the fiscal year in which amounts
are distributed may differ from the year that the income or realized gains
(losses) were recorded by the Fund.
Dividends to shareholders
An annual dividend declared and paid by the end of the calendar year from net
investment income is reinvested in additional shares of the Fund at net asset
value or payable in cash. Capital gains, when available, are distributed along
with the income dividend.
Other
Security transactions are accounted for on the date securities are purchased
or sold. Dividend income is recognized on the ex-dividend date or upon receipt
of ex-dividend notification in the case of certain foreign securities.
Interest income, including level-yield amortization of premium and discount is
accrued daily.
<PAGE>
PAGE
______________________________________________________________________________
2. Expenses and sales charges
Effective March 20, 1995, the Fund entered into agreements with American
Express Financial Corporation (AEFC) for managing its portfolio, providing
administrative services and serving as transfer agent as follows: Under its
Investment Management Services Agreement, AEFC determines which securities
will be purchased, held or sold. The management fee is a percentage of the
Fund's average daily net assets in reducing percentages from 0.8% to 0.675%
annually.
Under an Administrative Services Agreement, the Fund pays AEFC for
administration and accounting services at a percentage of the Fund's average
daily net assets in reducing percentages from 0.06% to 0.035% annually.
Under a separate Transfer Agency Agreement, AEFC maintains shareholder
accounts and records. The Fund pays AEFC an annual fee per shareholder account
for this service as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the Fund entered into agreements with American
Express Financial Advisors Inc. for distribution and shareholder servicing-
related services as follows: Under a Plan and Agreement of Distribution, the
Fund pays a distribution fee at an annual rate of 0.75% of the Fund's average
daily net assets attributable to Class B shares for distribution-related
services.
<PAGE>
PAGE
Under a Shareholder Service Agreement, the Fund pays a fee for service
provided to shareholders by financial advisors and other servicing agents. The
fee is calculated at a rate of 0.175% of the Fund's average daily net assets
attributable to Class A and Class B shares.
AEFC will assume and pay any expenses (except taxes and brokerage commissions)
that exceed the most restrictive applicable state expense limitation.
Sales charges received by American Express Financial Advisors Inc. for
distributing Fund shares were $2,086,605 for Class A and $9,338 for Class B
for the six months ended April 30, 1996. The Fund also pays custodian fees to
American Express Trust Company, an affiliate of AEFC.
During the six months ended April 30, 1996, the Fund's custodian and transfer
agency fees were reduced by $3,707 as a result of earnings credits from
overnight cash balances.
The Fund had a retirement plan for its independent board members. Upon
retirement, board members receive monthly payments equal to one-half of the
retainer fee for as many months as they served as board members 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 board members serve on the
board. The retirement plan expense amounted to $4,522 for the six months ended
April 30, 1996. The plan was terminated April 30, 1996. The total liability
for the plan is $15,520, which will be paid out at some future date.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $666,948,557 and $487,442,760, respectively, for the
six months ended April 30, 1996. Realized gains and losses are determined on
an identified cost basis.
Brokerage commissions paid to brokers affiliated with AEFC were $975 for the
six months ended April 30, 1996.
<PAGE>
PAGE
4. Foreign currency contracts
At April 30, 1996, the Fund had entered into 27 foreign currency exchange
contracts that obligate the Fund to deliver currencies at specified future
dates. The unrealized appreciation and/or depreciation on these contracts are
included in the accompanying financial statements. The terms of the open
contracts are as follows:
<TABLE>
<CAPTION>
Exchange date Currency to be Currency to be Unrealized Unrealized
delivered received appreciation depreciation
______________________________________________________________________________________
<S> <C> <C> <C> <C>
May 1, 1996 532,083 4,115,825 $ -- $ 14
U.S. Dollar Hong Kong Dollar
May 1, 1996 4,291,611 554,809 14 --
Hong Kong Dollar U.S. Dollar
May 2, 1996 2,518,448 1,671,610 -- 3,845
U.S. Dollar British Pound
May 2, 1996 55,848 76,037 10 --
U.S. Dollar Canadian Dollar
May 2, 1996 165,443 225,036 -- 128
U.S. Dollar Canadian Dollar
May 2, 1996 16,870,371 2,180,846 -- 56
Hong Kong Dollar U.S. Dollar
May 2, 1996 3,114,067 24,089,487 81 --
U.S. Dollar Hong Kong Dollar
May 2, 1996 369,097 573,791,225 -- 2,106
U.S. Dollar Italian Liara
May 2, 1996 597,515 63,070,708 5,427 --
U.S. Dollar Japanese Yen
May 2, 1996 962,037 101,480,465 8,093 --
U.S. Dollar Japanese Yen
May 2, 1996 2,179,271 229,880,399 18,333 --
U.S. Dollar Japanese Yen
May 2, 1996 12,598,400 498,542 -- 553
Thai Baht U.S. Dollar
May 2, 1996 1,222,796 30,900,661 1,356 --
U.S. Dollar Thai Baht
May 3, 1996 2,536,638 1,679,426 -- 10,278
U.S. Dollar British Pound
May 3, 1996 2,253,260 11,602,485 -- 9,195
U.S. Dollar French Franc
May 3, 1996 14,153,900 1,908,820 3,854 --
Mexican Peso U.S. Dollar
May 3, 1996 8,079,840 320,079 -- 10
Thai Baht U.S. Dollar
May 3, 1996 325,379 8,213,638 10 --
U.S. Dollar Thai Baht
May 6, 1996 1,715,730,000 1,098,011 646 --
Italian Lira U.S. Dollar
May 6, 1996 4,887,426 7,636,994,456 -- 2,876
U.S. Dollar Italian Lira
May 7, 1996 5,408,585 564,953,723 -- 7,756
U.S. Dollar Japanese Yen
May 7, 1996 509,042 12,857,902 333 --
U.S. Dollar Thai Baht
May 8, 1996 682,333 1,025,921 6,721 --
British Pound U.S. Dollar
June 28, 1996 90,000,000 13,493,658 244,979 --
Sweden Krona U.S. Dollar
July 5, 1996 2,550,000,000 24,000,000 -- 588,497
Japanese Yen U.S. Dollar
July 19, 1996 182,000,000 35,672,285 349,901 --
French Franc U.S. Dollar
July 19, 1996 1,000,000,000 9,568,920 -- 73,628
Japanese Yen U.S. Dollar
______ __________
$639,758 $698,942
/TABLE
<PAGE>
PAGE
5. Lending of portfolio securities
At April 30, 1996, securities valued at $41,983,705 were on loan to brokers.
For collateral, the Fund received $38,551,100 in cash and U.S. government
securities valued at $4,757,397. Income from securities lending amounted to
$60,257 for the six months ended April 30, 1996. The risks to the Fund of
securities lending are that the borrower may not provide additional collateral
when required or return the securities when due.
______________________________________________________________________________
6. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
<TABLE>
<CAPTION>
Six months April 30, 1996
Class A Class B Class Y
___________________________________________________________________
<S> <C> <C> <C>
Sold 42,948,561 7,127,208 1,225,361
Issued for reinvested 2,549,940 100,899 81,068
distributions
Redeemed (34,829,403) (403,137) (2,501,418)
___________________________________________________________________
Net increase(decrease) 10,669,098 6,824,970 (1,194,989)
___________________________________________________________________
Year ended Oct. 31, 1995
Class A Class B* Class Y*
___________________________________________________________________
Sold 54,746,186 3,426,130 4,666,904
Issued for reinvested 1,583,930 -- --
distributions
Redeemed (49,171,839) (84,555) (982,007)
___________________________________________________________________
Net increase 7,158,277 3,341,575 3,684,897
___________________________________________________________________
*Inception date was March 20, 1995.
______________________________________________________________________________
7. Stock index futures contracts
Investments in securities at April 30, 1996, included securities valued at
$4,187,500 that were pledged as collateral to cover initial margin deposits on
open purchase contracts. The market value of the open contracts at
April 30, 1996, was $48,003,871 (5.2% of the Fund's net assets as of April 30,
1996) with a net unrealized gain of $2,381,736. To cover these long futures
positions, the Fund maintains short-term securities at least equal to the
market value of the outstanding contracts. Included in the open contracts are
OTC Emerging Market Index futures entered into in order to gain exposure to
the global market. The indexes represent a number of securities primarily from
Asia and South America. The risks with these contracts are that the foreign
markets will under perform the U.S. market or the other party will be unable
to complete the obligation of the contract upon close.
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
8. Financial highlights
The tables below show certain important financial
information for evaluating the Fund's results.
Fiscal period ended Oct. 31,
Per share income and capital changes*
Class A
1996** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $6.37 $6.96$6.30 $4.92 $5.03 $4.67
beginning of period
Income from investment operations:
Net investment income .01 .10 .04 .02 .04 .08
Net gains (losses) 1.10 (.59) .73 1.43 (.11) .36
(both realized
and unrealized)
Total from investment 1.11 (.49) .77 1.45 (.07) .44
operations
Less distributions:
Dividends from net (.13)(.05) (.02) (.03) (.04) (.08)
investment income
Distributions from (.03)(.05) (.09) (.03) -- --
realized gains
Excess distribution of -- -- -- (.01) -- --
realized gains
Total distributions (.16)(.10) (.11) (.07) (.04) (.08)
Net asset value, $7.32 $6.37 $6.96 $6.30 $4.92 $5.03
end of period
Ratios/supplemental data
Class A
1996** 1995 1994 1993 1992 1991
Net assets, end of $836 $659 $670 $244 $69 $38
period (in millions)
Ratio of expenses to 1.42%+ 1.39% 1.38% 1.51% 1.72% 1.70%
average daily net assets
Ratio of net income .46%+ 1.59% .85% .80% 1.16% 1.66%
to average
daily net assets
Portfolio turnover rate 74% 90% 26% 27% 41% 33%
(excluding short-term
securities)
Total return++ 17.8%(7.0%) 12.1% 29.9%(1.5%) 9.8%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended April 30, 1996 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
IDS Global Growth Fund
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Fiscal period ended Oct. 31,
Per share income and capital changes*
Class B Class Y
1996*** 1995** 1996*** 1995**
<S> <C> <C> <C> <C>
Net asset value, $6.34 $5.82 $6.38 $5.82
beginning of period
Income from investment operations:
Net investment income (0.2) .02 0.2 .06
(loss)
Net gains 1.10 .50 1.10 .50
(both realized
and unrealized)
Total from investment 1.08 .52 1.12 .56
operations
Less distributions:
Dividends from net (.12) -- (.14) --
investment income
Distributions from (.03) -- (.03) --
realized gains
Total distributions (.15) -- (.17) --
Net asset value, $7.27 $6.34 $7.33 $6.38
end of period
Ratios/supplemental data
Class B Class Y
1996*** 1995** 1996*** 1995**
Net assets, end of $74 $21 $18 $24
period (in millions)
Ratio of expenses to 2.23%+ 2.16% 1.24%+ 1.20%
average daily net assets
Ratio of net income (.27%)+ .85% .67%+ 2.37%
(loss) to average
daily net assets
Portfolio turnover rate 74% 90% 74% 90%
(excluding short-term
securities)
Total return++ 17.4% 8.9% 17.9% 9.6%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B and Class Y.
***Six months ended April 30. 1996 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Global Growth Fund (Percentages represent value of
April 30, 1996 (Unaudited) investments compared to net assets)
Investments in securities of unaffiliated issuers
_____________________________________________________________________________________________________________________________
Common stocks (83.3%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Argentina (2.6%)
Banks and savings & loans (0.6%)
Banco de Galicia-Buenos Aires 250,000 (d) $ 5,875,000
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.1%)
Comp Naviera Perez ADR 750,000 (d) 9,330,000
_____________________________________________________________________________________________________________________________
Retail (0.3%)
Disco 190,000 (c) 3,016,250
_____________________________________________________________________________________________________________________________
Utilities-electric (0.6%)
Capex GDR 400,000 5,700,000
_____________________________________________________________________________________________________________________________
Australia (1.1%)
Metals
Golden Shamrock 5,000,000 (c,d) 4,752,575
Pasminco 3,600,000 5,260,043
____________
Total 10,012,618
_____________________________________________________________________________________________________________________________
Bahamas (1.2%)
Industrial transportation (0.6%)
Teekay Shipping 200,000 5,550,000
_____________________________________________________________________________________________________________________________
Restaurants & lodging (0.6%)
Sun Intl 137,200 (c) 5,865,300
_____________________________________________________________________________________________________________________________
Bermuda (0.4%)
Media
Comcast 275,000 (c) 3,643,750
_____________________________________________________________________________________________________________________________
Brazil (1.3%)
Retail (0.6%)
Lojas Arapua ADR 500,000 (b,c) 5,140,850
_____________________________________________________________________________________________________________________________
Telecommunications (0.7%)
Telebras ADR 125,000 (c,d) 6,765,625
_____________________________________________________________________________________________________________________________
Canada (3.9%)
Energy (1.1%)
Renaissance Energy 400,000 (c) 10,563,820
_____________________________________________________________________________________________________________________________
Health care (0.7%)
Biovail 225,000 (c) 6,356,250
_____________________________________________________________________________________________________________________________
Metals (1.6%)
Bre X Minerals 48,400 (c) 7,111,111
Prime Resources 600,000 (c) 5,685,948
TVI Pacific 1,350,000 (c) 2,330,572
_____________
Total 15,127,631
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.5%)
BCE 105,200 4,142,250
_____________________________________________________________________________________________________________________________
Chile (2.7%)
Banks and savings & loans (0.6%)
Banco de A Edwards ADR 235,000 4,964,375
Banco Osorno ADR 80,000 (c) 1,210,000
_____________
Total 6,174,375
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.5%)
Madeco ADR 175,000 (d) 4,375,000
_____________________________________________________________________________________________________________________________
Retail (0.5%)
Santa Isabel 160,000 (c) 4,620,000
_____________________________________________________________________________________________________________________________
Utilities-electric (0.6%)
Enersis ADR 180,000 (d) 5,355,000
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.5%)
Telefonos de Chile ADR 50,000 (d) 4,562,500
_____________________________________________________________________________________________________________________________
France (4.9%)
Automotive & related (0.8%)
Michelin 150,000 7,429,936
_____________________________________________________________________________________________________________________________
Chemicals (1.2%)
Cie Generale Des Eaux 100,000 10,869,775
_____________________________________________________________________________________________________________________________
Computers & office equipment (0.9%)
Sligos 90,000 8,651,336
_____________________________________________________________________________________________________________________________
Electronics (0.9%)
SGS-Thomson Microele 175,000 (c,d) 8,225,000
_____________________________________________________________________________________________________________________________
Metals (0.6%)
Usinor Sacilor 350,000 (c) 5,412,162
_____________________________________________________________________________________________________________________________
Retail (0.5%)
Casino Guichard Perrachon 116,000 4,363,770
_____________________________________________________________________________________________________________________________
Hong Kong (4.8%)
Airlines (0.3%)
Cathay Pacific Airways 1,500,000 2,610,000
_____________________________________________________________________________________________________________________________
Beverages & tobacco (1.0%)
China Apollo Holdings 19,510,000 (c) 5,422,590
Vitaso Intl Holdings 10,000,000 3,878,220
______________
Total 9,300,810
_____________________________________________________________________________________________________________________________
Energy (0.1%)
Zhenhai Refining 4,000,000 1,047,120
_____________________________________________________________________________________________________________________________
Financial services (0.5%)
Great Eagle Holdings 1,750,000 5,022,299
_____________________________________________________________________________________________________________________________
Food (0.1%)
Tingyi 2,300,000 (b,c) 639,260
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.4%)
Four Seas Merchantile Holdings 8,000,000 (c) 3,025,008
Henerson China 761,000 (c,d) 2,110,199
Jardine Matheson 1,000,000 (c) 8,000,000
_____________
Total 13,135,207
_____________________________________________________________________________________________________________________________
Utilities-electric (0.9%)
Consolidated Electric Power 5,000,000 (c) 8,273,540
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.5%)
Hong Kong Telecom 2,500,000 4,766,983
_____________________________________________________________________________________________________________________________
India (1.4%)
Automotive & related (0.1%)
Mahindra & Mahindra 89,500 (c) 939,750
_____________________________________________________________________________________________________________________________
Building materials & construction (0.9%)
Larsen & Toubro 425,000 (b) 8,075,000
_____________________________________________________________________________________________________________________________
Utilites-electric (0.4%)
Bombay Surburban Electric 200,000 (c) 4,001,000
_____________________________________________________________________________________________________________________________
Indonesia (4.0%)
Banks and savings & loans (1.0%)
PT Bank Bali 1,400,000 3,605,924
PT Bank Dagang Nasional 5,700,000 5,688,988
___________
Total 9,294,912
_____________________________________________________________________________________________________________________________
Building materials & construction (0.5%)
PT Mulia Industrindo 2,600,000 5,022,537
_____________________________________________________________________________________________________________________________
Metals (1.1%)
PT Tambang Timah 600,000 (b,c) 10,313,994
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.6%)
PT Astra Intl 3,600,000 5,331,614
_____________________________________________________________________________________________________________________________
Real estate (0.5%)
PT Jaya Real Properties 1,400,000 (c) 4,867,997
_____________________________________________________________________________________________________________________________
Retail (0.3%)
PT Hero Supermarket 2,000,000 2,318,100
_____________________________________________________________________________________________________________________________
Ireland (0.5%)
Food
Greencore Group PLC 1,000,000 4,828,803
_____________________________________________________________________________________________________________________________
Italy (2.8%)
Automotive & related (0.5%)
Fiat 1,400,000 4,768,148
_____________________________________________________________________________________________________________________________
Building materials & construction (0.5%)
Cementir 440,000 3,192,709
Unicem 200,000 (c) 1,368,724
___________
Total 4,561,433
_____________________________________________________________________________________________________________________________
Computers & office equipment (0.4%)
Olivetti 5,500,000 (c) 3,517,745
_____________________________________________________________________________________________________________________________
Energy (0.4%)
Ente Nazionale Idrocarburi 750,000 (c) 3,237,927
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.6%)
Parmalat Finanziaria 5,000,000 5,500,475
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.4%)
Sasib 1,000,000 (c) 3,952,670
_____________________________________________________________________________________________________________________________
Japan (11.6%)
Building materials & construction (0.6%)
Taisei 725,000 (c) 5,613,972
_____________________________________________________________________________________________________________________________
Electronics (2.4%)
Matsushita Electric 300,000 5,305,674
NEC 385,000 4,895,082
Rohm 100,000 (c) 6,366,808
TDK 100,000 (c) 5,726,304
____________
Total 22,293,868
_____________________________________________________________________________________________________________________________
Financial services (0.3%)
TOC 240,000 2,776,158
_____________________________________________________________________________________________________________________________
Industrial equipment & services (1.6%)
Mitsubishi Heavy Inds 1,000,000 (c) 8,928,827
Secom 80,000 (c) 5,659,385
_____________
Total 14,588,212
_____________________________________________________________________________________________________________________________
Industrial transportation (1.2%)
Itochu 355,000 2,704,794
Nippon Express 550,000 5,731,084
NSK 330,000 2,665,742
_____________
Total 11,101,620
_____________________________________________________________________________________________________________________________
Insurance (0.4%)
Tokio Marine & Fire Insurance 250,000 3,441,518
_____________________________________________________________________________________________________________________________
Media (1.3%)
DAI Nippon Printing 250,000 4,708,188
Sony 40,000 2,600,258
Sony ADR 70,700 4,560,150
_____________
Total 11,868,596
_____________________________________________________________________________________________________________________________
Metals (0.3%)
Nippon Steel 730,000 2,637,923
_____________________________________________________________________________________________________________________________
Multi-indusrty conglomerates (0.3%)
Mitsubishi Materials 465,000 (c) 2,800,535
_____________________________________________________________________________________________________________________________
Retail (1.7%)
Familymart 165,000 (c) 8,076,096
York-Benimaru 200,000 (c) 8,030,209
____________
Total 16,106,305
_____________________________________________________________________________________________________________________________
Textiles & apparel (0.8%)
Onward Kashiyama 160,000 (c) 2,707,327
World Company 125,000 (c) 5,245,925
___________
Total 7,953,252
_____________________________________________________________________________________________________________________________
Utilities-electric (0.7%)
Sumitomo Electric 475,000 (c) 6,811,338
_____________________________________________________________________________________________________________________________
Luxembourg (0.5%)
Beverages & tobacco
Quilmes Industrial 400,000 4,750,000
_____________________________________________________________________________________________________________________________
Mexico (1.9%)
Banks and savings & loans (0.6%)
Grupo Financiero Banorte Series B 3,661,553 (c) 5,095,600
_____________________________________________________________________________________________________________________________
Building materials & construction (1.3%)
Bufete Inds ADR 200,000 (c) 3,500,000
Cemex 1,224,000 (c) 4,843,284
Empresas ICA Sociedad Controladora 300,000 (d) 4,162,500
____________
Total 12,505,784
_____________________________________________________________________________________________________________________________
Netherlands (2.2%)
Building materials & construction (0.7%)
Volker Stevin 100,000 6,798,950
_____________________________________________________________________________________________________________________________
Computers & office equipment (0.6%)
Triple P 600,000 (c) 5,100,000
_____________________________________________________________________________________________________________________________
Energy equipment & services (0.9%)
Schlumberger 100,000 8,825,000
_____________________________________________________________________________________________________________________________
Norway (1.0%)
Health care (0.4%)
Halfslund Nycomed 120,000 3,390,000
_____________________________________________________________________________________________________________________________
Media (0.6%)
Schibsted 370,000 (b) 5,407,174
_____________________________________________________________________________________________________________________________
Peru (0.9%)
Banks and savings & loans (0.8%)
Credicorp 411,250 6,991,250
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.1%)
CPT Telefonica del Peru 500,000 (c) 1,117,436
_____________________________________________________________________________________________________________________________
Phillipines (3.8%)
Banks and savings & loans (0.7%)
Metropolitan Bank & Trust 250,000 6,734,811
_____________________________________________________________________________________________________________________________
Building materials & construction (0.7%)
Alsons Cement 11,000,000 (c) 5,149,023
Bacnotan Consolidated Inds 300,000 1,559,037
______________
Total 6,708,060
_____________________________________________________________________________________________________________________________
Financial services (1.3%)
Fil-Estate Land 6,000,000 (c) 6,304,926
Filinvest Development 7,000,000 (b,c) 6,152,076
_____________
Total 12,457,002
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (0.3%)
Universal Robina 5,500,000 (c) 2,784,672
_____________________________________________________________________________________________________________________________
Paper & packaging (0.8%)
Intl Container Service 10,000,000 (c) 6,973,630
_____________________________________________________________________________________________________________________________
Portugal (0.3%)
Paper & packaging
Portucell ADR 445,000 (c) 2,694,735
_____________________________________________________________________________________________________________________________
Singapore/Malaysia (5.2%)
Banks and savings & loans (0.6%)
Malayan Banking Berhad 530,000 (c) 5,165,029
_____________________________________________________________________________________________________________________________
Financial services (0.7%)
Commerce Asset 1,000,000 (b) 6,817,726
_____________________________________________________________________________________________________________________________
Food (0.5%)
Cerebos Pacific 500,000 4,517,965
_____________________________________________________________________________________________________________________________
Industrial transportation (0.5%)
Malaysian Resources 1,715,000 4,401,844
_____________________________________________________________________________________________________________________________
Media (0.5%)
Singapore Press Holdings 250,000 (c) 4,731,412
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.8%)
China North Industries Investment 7,500,000 (c) 5,625,000
Keppel 600,000 (c) 5,421,558
Sungei Way Holdings 1,300,000 5,995,588
____________
Total 17,042,146
_____________________________________________________________________________________________________________________________
Real estate (0.5%)
Hong Kong Land 2,200,000 (c) 4,708,000
_____________________________________________________________________________________________________________________________
Miscellaneous (0.1%)
Southeast Asia Frontier 250,000 (c) 1,250,000
_____________________________________________________________________________________________________________________________
South Africa (0.7%)
Energy (0.4%)
Energy Africa 290,000 (b,c) 3,552,500
_____________________________________________________________________________________________________________________________
Restaurants & lodging (0.3%)
Sun Intl 2,517,531 (c) 3,193,513
_____________________________________________________________________________________________________________________________
Spain (3.7%)
Banks and savings & loans (0.9%)
Argentaria 200,000 8,094,302
_____________________________________________________________________________________________________________________________
Building materials & construction (0.6%)
Fomento de Construcciones y Contratas 60,000 (c) 5,115,914
_____________________________________________________________________________________________________________________________
Industrial transportation (0.5%)
Autospistas del Mare Nostrum 400,000 4,809,430
_____________________________________________________________________________________________________________________________
Utilities-electric (0.6%)
Iberdrola 600,000 5,870,333
_____________________________________________________________________________________________________________________________
Utilities-telephone (1.1%)
Telefonica de Espana ADR 200,000 (d) 10,525,000
_____________________________________________________________________________________________________________________________
Sweden (2.7%)
Banks and savings & loans (0.4%)
Nordbanken ADR 100,000 (b,c) 3,412,500
_____________________________________________________________________________________________________________________________
Health care (0.6%)
Astra Cl A 135,000 6,001,106
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.6%)
BT Industries AB 400,000 (b) 5,219,320
_____________________________________________________________________________________________________________________________
Metals (1.1%)
Hoganas Cl B 300,000 9,952,082
_____________________________________________________________________________________________________________________________
Thailand (2.3%)
Banks and saving & loans (0.8%)
Bangkok Bank 858,400 (c) 765,137
Krung Thai Bank 495,000 2,431,613
Siam City Bank 1,501,000 1,798,761
Thai Farmers Bank 212,000 2,435,575
____________
Total 7,431,086
_________________________________________________________________________________________________________________________________
Beverages & tobacco (0.1%)
Sermsuk 14,700 454,234
_____________________________________________________________________________________________________________________________
Building materials & construction (0.7%)
Italian-Thai Development 700,000 (c) 6,433,594
_____________________________________________________________________________________________________________________________
Financial services (0.6%)
Bangkok Metro 254,945 (c) 126,248
Dhana Siam Finance & Securities 800,000 5,641,279
_____________
Total 5,767,527
_____________________________________________________________________________________________________________________________
Food (0.1%)
Thai Theparos Food Products 285,000 (c) 1,433,891
_____________________________________________________________________________________________________________________________
United Kingdom (5.8%)
Banks and savings & loans (0.5%)
Barclays 425,000 4,705,450
_____________________________________________________________________________________________________________________________
Computers & office equipment (0.6%)
JBA Holdings 671,000 5,168,053
_____________________________________________________________________________________________________________________________
Electronics (0.5%)
Nynex Cable ADR 250,000 (c) 4,656,250
_____________________________________________________________________________________________________________________________
Health care (0.7%)
SmithKline Beecham ADR 125,000 6,750,000
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (1.1%)
Ladbroke Group 3,400,000 9,999,080
_____________________________________________________________________________________________________________________________
Metals (0.5%)
Ashanti Goldfields 230,000 (c,d) 5,031,250
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (1.3%)
Hays 500,000 (c) 3,241,767
Inchcape 2,000,000 8,845,284
____________
Total 12,087,051
_____________________________________________________________________________________________________________________________
Utilities-electric (0.6%)
Natl Power 600,000 5,063,474
_____________________________________________________________________________________________________________________________
United States (9.1%)
Automotive & related (0.2%)
Bajaj Auto 60,000 (c) 2,145,000
_____________________________________________________________________________________________________________________________
Banks and savings & loans (0.5%)
Bangkok Metro Bank 1,641,600 (c) 1,495,764
Credito Italiano 2,600,000 (c) 3,314,230
_____________
Total 4,809,994
_____________________________________________________________________________________________________________________________
Computers & office equipment (0.7%)
Oracle 187,500 (c) 6,328,125
_____________________________________________________________________________________________________________________________
Electronics (0.8%)
MEMC Electronic Materials 150,000 (c) 7,481,250
_____________________________________________________________________________________________________________________________
Energy (0.6%)
OMV 27,000 2,683,074
Santa Fe Energy Resources 250,000 (c) 3,000,000
____________
Total 5,683,074
_____________________________________________________________________________________________________________________________
Industrial equipment & services (0.6%)
Wolverine Tube 150,000 (c) 5,512,500
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (0.6%)
Cedar Fair 150,000 5,362,500
Ladbroke Group 64,761 (c) 190,456
____________
Total 5,552,956
_____________________________________________________________________________________________________________________________
Metals (3.8%)
Alumax 150,000 (c,e) 5,025,000
Bohler-Uddeholm 35,000 (b) 2,857,209
Century Aluminum 352,000 (c) 5,192,000
Stillwater Mining 137,000 (c) 3,288,000
Stillwater Mining 450,000 (b,c) 10,800,000
UCAR Intl 200,000 (c) 8,200,000
_____________
Total 35,362,209
_____________________________________________________________________________________________________________________________
Retail (0.6%)
Giordano Intl 5,500,000 (c) 5,083,699
Harvey Nichols 150,000 (c) 733,346
____________
Total 5,817,045
_____________________________________________________________________________________________________________________________
Utilities-telephone (0.5%)
Orion Network Systems 300,000 (c) 4,162,500
_____________________________________________________________________________________________________________________________
Miscellaneous (0.2%)
Siderar ADR 80,000 (b,c) 1,490,000
_____________________________________________________________________________________________________________________________
Total common stocks of unaffiliated issuers
(Cost: $703,940,474) $772,488,638
_____________________________________________________________________________________________________________________________
Bonds (6.0%)
_____________________________________________________________________________________________________________________________
Issuer and Principal Value(a)
coupon rate amount
_____________________________________________________________________________________________________________________________
Argentina (1.1%)
Banco de Galicia
(U.S. Dollar)
7% Cv 2002 $ 5,000,000 $ 5,225,000
Republic of Argentina
(U.S. Dollar)
6.31% 2005 6,000,000 4,578,750
_____________
Total 9,803,750
_____________________________________________________________________________________________________________________________
Luxembourg (0.5%)
Scandinavian Broadcast
(U.S. Dollar)
7.25% Cv 2005 4,500,000 4,691,250
______________________________________________________________________________________________________________________________
Malaysia (1.4%)
Commerce Asset
(U.S. Dollar)
1.75% Cv 2004 1,500,000 1,933,125
Renong
(U.S. Dollar)
2.50% Cv 2005 10,000,000 (b) 11,550,000
_____________
Total 13,483,125
_____________________________________________________________________________________________________________________________
Mexico (0.6%)
Banco Nacional de Mexico
(U.S. Dollar)
7% Cv 1999 5,000,000 (b) 4,475,000
US Mexico Series A
(U.S. Dollar)
6.25% 2019 1,500,000 993,750
___________
Total 5,468,750
_____________________________________________________________________________________________________________________________
Philippines (0.6%)
Metro Pacific Capital
(U.S. Dollar)
2.50% Cv 2003 5,000,000 (b) 5,187,500
_____________________________________________________________________________________________________________________________
Poland (0.5%)
Poland Bearer PDI
(U.S. Dollar)
3.75% 2014 6,000,000 4,601,250
_____________________________________________________________________________________________________________________________
United Kingdom (0.8%)
Liberty Life Insurance
(U.S. Dollar)
6.50% Cv 2004 6,000,000 (b) 7,800,000
______________________________________________________________________________________________________________________________
United States (0.5%)
Tele-Communications Intl
(U.S. Dollar)
4.50% Cv 2006 4,750,000 4,459,063
______________________________________________________________________________________________________________________________
Total bonds
(Cost: $47,995,182) $ 55,494,688
_____________________________________________________________________________________________________________________________
Preferred stock (0.6%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Japan
AJL Peps Trust
7.5% Cv 1999 260,000 5,785,000
_____________________________________________________________________________________________________________________________
Total preferred stock
(Cost: $4,981,600) $ 5,785,000
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (14.2%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable
date of at
purchase maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
U.S. government agencies (1.5%)
Federal Home Loan Mtge Corp
Disc Nts
05-20-96 5.19% $1,660,000 $ 1,655,471
05-31-96 5.26 7,700,000 7,666,441
U.S. Treasury Bills
05-02-96 5.04 5,000,000 4,999,223
_____________
Total 14,321,135
_____________________________________________________________________________________________________________________________
Commercial paper (12.1%)
AVCO Financial
05-15-96 5.28 2,800,000 2,794,110
05-22-96 5.34 6,000,000 5,981,380
BBV Finance
05-13-96 5.34 8,100,000 8,085,636
Cargill
05-15-96 5.34 5,300,000 5,289,035
CIT Group
05-30-96 5.31 6,700,000 6,671,503
CPC Intl
05-08-96 5.37 1,500,000 (f) 1,498,442
Dean Witter
05-21-96 5.34 5,000,000 4,985,222
Fleet Funding
05-03-96 5.29 1,700,000 (f) 1,699,504
Ford Motor Credit
06-07-96 5.17 2,300,000 2,286,089
Gannett
05-23-96 5.30 4,600,000 (f) 4,585,157
Gateway Fuel
05-08-96 5.36 5,700,000 5,694,092
Goldman Sachs Group
05-22-96 5.34 4,900,000 4,884,794
Metlife Funding
05-24-96 5.30 4,500,000 4,484,820
Mobil Australia
5-30-96 5.30 6,500,000 (f) 6,472,353
Morgan Stanley Group
05-20-96 5.34 5,000,000 4,986,014
Natl Australia Funding
05-16-96 5.34 2,600,000 2,594,237
Natl Detroit Bank
06-25-96 5.30 1,000,000 999,936
Penney (JC) Funding
06-13-96 5.31 7,400,000 7,353,331
Sandoz
06-19-96 5.34 3,200,000 3,176,044
SmithKline Beecham
06-19-96 5.31 5,400,000 5,361,265
Southwestern Bell
05-17-96 5.33 2,800,000 (f) 2,793,417
06-27-96 5.34 900,000 892,041
Toyota Motor
05-24-96 5.30 7,600,000 7,574,362
06-07-96 5.31 1,400,000 1,392,403
Transamerica Financial
06-12-96 5.32 4,200,000 4,174,079
USAA Capital
05-21-96 5.33 6,000,000 5,982,300
_____________
Total 112,691,566
_____________________________________________________________________________________________________________________________
Letter of credit (0.6%)
Credit Suisse-
Cosco
05-31-96 5.32 5,200,000 5,172,229
_____________________________________________________________________________________________________________________________
Total short term securities
(Cost: $132,193,620) $132,184,930
_____________________________________________________________________________________________________________________________
Total investments in securities of unaffiliated issuers
(Cost: $889,110,876) $965,953,256
_____________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in securities of affiliated issuers (g)
_____________________________________________________________________________________________________________________________
Common stocks (0.9%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C>
Canada (0.7%)
Metals
Nevsun Resources 500,000 (c) 3,985,305
Oliver Gold 725,000 (c) 2,183,649
____________
Total 6,168,954
_____________________________________________________________________________________________________________________________
United States (0.2%)
Industrial equipment & services
GNI Group 425,000 (c) $ 1,912,500
____________________________________________________________________________________________________________________________
Total investments in securities of affiliated issuers
(Cost: $8,017,232) $ 8,081,454
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $897,128,108)(h) $974,034,710
_____________________________________________________________________________________________________________________________
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______________________________________________________________________________________________________________________________
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.
(c) Presently non-income producing.
(d) Security is partially or fully on loan. See Note 5 to the financial statements.
(e) Fully or partially pledged as initial deposit on the following open stock index futures purchase contracts (see Note 7 to
the financial statements):
Type of security Notional amount
______________________________________________________________
Brazil Emerging Market Index, May 1996 $ 50,000
Korean Index, July 1996 100,000
Phillippine Index, July 1996 50,000
Brazil Custom Banket, Sept. 1996 95,000
______________________________________________________________
Type of security Contracts
______________________________________________________________
S & P 500, June 1996 23,000
______________________________________________________________
(f) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the
Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." This
security has been determined to be liquid under guidelines established by the board.
(g) Investments representing 5% or more of the outstanding voting securities of the issuer.
(h) At April 30, 1996, the cost of securities for federal income tax purposes was approximately $896,579,000 and the
approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $94,913,000
Unrealized depreciation (17,457,000)
____________________________________________________________________________________________
Net unrealized appreciation $77,456,000
____________________________________________________________________________________________
</TABLE>
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Board members and officers
Board members and officers of the Fund
_____________________________________________________________________
President and interested board member
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent board members
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested board members who are officers and/or employees of AEFC
William H. Dudley
Exective vice president, AEFC.
David R. Hubers
President and chief executive officer, AEFC.
John R. Thomas
Senior vice president, AEFC.
_____________________________________________________________________
Officers who are officers and/or employees of AEFC
Peter J. Anderson
Vice President of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
___________________________________________________________________
Other officer
Leslie L. Ogg
Vice president general Counsel and secretary of all funds in
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IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposit (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income.
Secondary objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
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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.
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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.
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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.
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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.
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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.
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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.)
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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.
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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.
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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.
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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.
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IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of
capital and income.
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IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
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IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
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IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
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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.
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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.
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Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
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IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy.
These companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth
potential due to superiority in technology, marketing or management.
The fund frequently changes its industry mix.
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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
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Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic companies
that explore for, mine and process or distribute gold and other
precious metals. This is the most aggressive and most speculative
IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your financial
planner or writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534. Read it carefully before you invest or
send money.
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Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota:
800-437-3133
Mpls./St. Paul area:
671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone phones only), including current
fund prices and performance, account values and recent account
transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Global Growth Fund
IDS Tower 10
Minneapolis, MN 55440-0010
