1997 SEMIANNUAL REPORT
IDS
Global Growth
Fund
(icon of) world
The goal of IDSGlobal Growth Fund, a part of IDSGlobal 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., Member SIPC.
<PAGE>
(icon of) world
It's a big world
after all
No one needs to be told that the world is changing rapidly. For example, some
years ago U.S. stocks accounted for about two-thirds of the total value of
stocks worldwide. Today, that figure is down to about one-third, as many foreign
stock markets have enjoyed explosive growth. Global Growth Fund seeks to take
advantage of that trend by investing in companies throughout the world, not just
the United States. For the most part, these are fast-growing foreign companies
involved in essential businesses such as infrastructure creation, finance and
environmental clean-up. As they prosper, Global Growth Fund offers investors the
potential to prosper along with them.
Contents
From the president 3
From the portfolio manager 3
The Portfolio's ten largest holdings 5
Financial statements (Fund) 6
Notes to financial statements (Fund) 9
Financial statements (Portfolio) 17
Notes to financial statements (Portfolio) 20
Investments in securities 28
Board members and officers 35
IDS mutual funds 36
<PAGE>
To our shareholders
From the president
If you're an experienced investor, you know that the past two years have
been unusually strong ones in many 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.
(picture of) William Pearce
William R. Pearce
President of the Fund
<PAGE>
From the portfolio manager
IDS Global Growth Fund generated a positive return during the past six
months, although its performance was penalized by a downturn in some key
markets last spring. For the first half of the fiscal year -- November
1996 through April 1997 -- the Fund's Class A shares returned 1.8%. This
figure includes a capital gain that was paid to shareholders last December
and reduced the Fund's net asset value by the same amount at that time.
The first four months of the period were easily the most productive as
many markets around the world gained ground. Among the most consistent was
the U.S. market which continued to thrive on the favorable factors of low
inflation, low interest rates, solid economic growth and healthy corporate
profits. I substantially increased the U.S. holdings last fall which
worked to the Fund's benefit through February. Investments in other
markets chipped in during that time, too, including those in Argentina,
Germany, the United Kingdom and Canada, where the corporate restructuring
trend that began in the U.S. has spread and ultimately boosted stock
prices.
U.S. decline affects
smaller markets
By March, though, the low-interest-rate leg of the stool supporting the
U.S. market had begun to weaken under the pressure of
stronger-than-expected economic data. The data fostered fears of higher
inflation and, in turn, a rise in long-term interest rates -- usually, a
nemesis for stocks. The result was a swift downturn in the U.S. market
which was mimicked by several smaller markets, particularly in Southeast
Asia. The bottom line for the Fund was that it was forced to give back
much of its previous gain.
Apart from the increase in U.S. holdings last fall, portfolio changes were
minor during the six months. I reduced exposure to Southeast Asia, and,
late in the period, I added to investments in Europe, particularly Germany
and Austria. I kept a relatively low exposure to Japan, where Fund
holdings performed well but were hampered by a decline in the yen.
Overall, changes in currency values had a negligible effect on Fund
performance, as declines in some currencies were offset by increases in
others. As the period progressed, I reduced the number of holdings to
allow the Fund to take larger positions in certain stocks while still
providing adequate diversification. I also let the cash reserves build up
to provide purchasing power when promising stocks experienced price dips.
As I prepare this report in mid-May, the U.S. market remains at an
all-time high level. While it may reach still-higher ground in the months
ahead, I think several foreign markets may be better performers over the
rest of the fiscal year. Therefore, while the Fund has a healthy exposure
to domestic stocks, I am keeping the bulk of the portfolio invested in
foreign issues, including a number of holdings in smaller, "emerging"
markets in Latin America and Southeast Asia.
(picture of) Richard Lazarchic
Richard Lazarchic
Portfolio manager
<PAGE>
To our shareholders
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1997 $ 6.61
Oct. 31, 1996 $ 7.12
Decrease $ 0.51
Distributions
Nov. 1, 1996 - April 30, 1997
From income $ 0.46
From capital gains $ 0.18
Total distributions $ 0.64
Total return* +1.8%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1997 $ 6.54
Oct. 31, 1996 $ 7.05
Decrease $ 0.51
Distributions
Nov. 1, 1996 - April 30, 1997
From income $ 0.43
From capital gains $ 0.18
Total distributions $ 0.61
Total return* +1.4%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
April 30, 1997 $ 6.62
Oct. 31, 1996 $ 7.13
Decrease $ 0.51
Distributions
Nov. 1, 1996 - April 30, 1997
From income $ 0.47
From capital gains $ 0.18
Total distributions $ 0.65
Total return* +1.9%**
*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>
The Portfolio's ten largest holdings
World Growth Portfolio
Percent Value
(of Portfolio's net assets) (as of April 30, 1997)
Telecomunicacoes Brasileiras -
Telebras ADR (Brazil) 1.61% $18,646,875
Volkswagen (Germany) 1.54 17,806,787
Michelin (France) 1.43 16,482,395
Telefonica de Espana ADR (Spain) 1.33 15,400,000
Stillwater Mining (United States) 1.22 14,087,500
UCAR Intl (United States) 1.18 13,650,000
Stork (Netherlands) 1.15 13,263,321
Ladbroke Group (United Kingdom) 1.15 13,218,920
Elf Aquitaine (France) 1.13 13,091,750
Prudential (United States) 1.05 12,164,537
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.
(icon of) pie chart
The ten holdings listed here make up 12.79% of the Portfolio's net assets
<PAGE>
<TABLE>
Financial statements
Statement of assets and liabilities
IDS Global Growth Fund
April 30, 1997
Assets
<CAPTION>
(Unaudited)
<S> <C>
Investment in World Growth Portfolio (Note 1) $1,155,424,383
--------------
Total assets 1,155,424,383
-------------
Liabilities
Accrued distribution fee 4,059
Accrued service fee 9,142
Accrued transfer agency fee 6,482
Accrued administrative services fee 1,599
Other accrued expenses 160,229
Total liabilities 181,511
-------
Net assets applicable to outstanding capital stock $1,155,242,872
--------------
Represented by
Capital stock-- $.01 par value (Note 1) $ 1,750,335
Additional paid-in capital 1,131,248,301
Undistributed net investment income 3,614,612
Accumulated net realized loss (Note 1) (10,959,720)
Unrealized appreciation of investments and on translation
of assets and liabilities in foreign currencies 29,589,344
----------
Total-- representing net assets applicable to outstanding capital stock $1,155,242,872
--------------
Net assets applicable to outstanding shares: Class A $ 933,765,008
Class B $ 200,346,977
Class Y $ 21,130,887
Net asset value per share of outstanding capital stock: Class A shares 141,206,205 $ 6.61
Class B shares 30,634,148 $ 6.54
Class Y shares 3,193,117 $ 6.62
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of operations
IDS Global Growth Fund
Six months ended April 30, 1997
Investment income
<CAPTION>
(Unaudited)
Income:
<S> <C>
Dividends $ 6,959,736
Interest 4,772,307
---------
Total income 11,732,043
----------
Expenses (Note 2):
Expenses, including investment management services fee,
allocated from World Growth Portfolio 4,828,030
Distribution fee -- Class B 666,274
Transfer agency fee 1,122,078
Incremental transfer agency fee-- Class B 14,297
Service fee
Class A 818,634
Class B 155,049
Administrative services fees and expenses 289,774
Compensation of board members 9,006
Compensation of officers 1,374
Postage 67,487
Registration fees 136,676
Reports to shareholders 60,211
Audit fees 3,250
Other 5,171
-----
Total expenses 8,177,311
Earnings credits on cash balances (Note 2) (31,069)
-------
Total net expenses 8,146,242
---------
Investment income -- net 3,585,801
---------
Realized and unrealized gain (loss) -- net
Net realized loss on security and foreign currency transactions (10,542,615)
Net realized loss on financial futures contracts (226,352)
Net realized gain on option contracts written 1,128,066
---------
Net realized loss on investments and foreign currencies (9,640,901)
Net change in unrealized appreciation or depreciation of investments and on
translation of assets and liabilities in foreign currencies 24,023,891
----------
Net gain on investments and foreign currencies 14,382,990
----------
Net increase in net assets resulting from operations $17,968,791
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Financial statements
Statements of changes in net assets
IDS Global Growth Fund
<CAPTION>
Operations and distributions April 30, 1997 Oct. 31, 1996
Six months ended Year ended
(Unaudited)
<S> <C> <C>
Investment income-- net $ 3,585,801 $ 12,802,747
Net realized gain (loss) on investments and foreign currencies (9,640,901) 83,713,244
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 24,023,891 4,273,988
---------- ---------
Net increase in net assets resulting from operations 17,968,791 100,789,979
---------- -----------
Distributions to shareholders from:
Net investment income
Class A (28,167,356) (13,274,302)
Class B (4,479,779) (512,136)
Class Y (638,540) (423,874)
Net realized gain
Class A (53,866,031) (3,145,261)
Class B (9,804,471) (134,517)
Class Y (1,160,638) (93,987)
---------- -------
Total distributions (98,116,815) (17,584,077)
----------- -----------
Capital share transactions (Note 3)
Proceeds from sales
Class A shares (Note 2) 330,036,380 618,804,853
Class B shares 67,890,520 128,152,185
Class Y shares 5,254,368 14,771,272
Reinvestment of distributions at net asset value
Class A shares 80,788,596 16,289,957
Class B shares 14,222,079 642,144
Class Y shares 1,799,178 517,861
Payments for redemptions
Class A shares (319,582,370) (465,361,817)
Class B shares (Note 2) (14,180,563) (6,684,733)
Class Y shares (3,564,977) (21,373,475)
---------- -----------
Increase in net assets from capital share transactions 162,663,211 285,758,247
----------- -----------
Total increase in net assets 82,515,187 368,964,149
Net assets at beginning of period 1,072,727,685 703,763,536
------------- -----------
Net assets at end of period $1,155,242,872 $1,072,727,685
============== ==============
(including undistributed net investment income of
$3,614,612 and $33,314,486)
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to financial statements
IDS Global Growth Fund
(Unaudited as to April 30, 1997)
1. Summary of significant accounting policies
IDS Global Growth Fund (a series of IDS Global Series, Inc.) 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 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.
Investment in World Growth Portfolio
Effective May 13, 1996, the Fund began investing all of its assets in
World Growth Portfolio (the Portfolio), a series of World Trust (the
Trust), an open-end investment company that has the same objectives as the
Fund. This was accomplished by transferring the Fund's assets to the
Portfolio in return for a proportionate ownership interest in the
Portfolio. World Growth Portfolio seeks to provide shareholders with a
long-term growth of capital by investing primarily in common stocks and
securities convertible into common stocks of companies throughout the
world.
The Fund records daily its share of the Portfolio's income, expenses and
realized and unrealized gains and losses. The financial statements of the
Portfolio are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The Fund records its investment in the Portfolio at value which is equal
to the Fund's proportionate ownership interest in the net assets of the
Portfolio. The percentage of the Portfolio owned by the Fund at April 30,
1997 was 99.95%. Valuation of securities held by the Portfolio is
discussed in Note 1 of the Portfolio's "Notes to financial statements,"
which are included elsewhere in this report.
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.
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 the shareholders, no provision for
income or excise taxes is required.
Net investment income (loss) and net realized gains (losses) allocated
from the Portfolio 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 at 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.
2. Expenses and sales charges
In addition to the expenses allocated from the Portfolio, the Fund accrues
its own expenses as follows:
Effective March 20, 1995, the Fund entered into agreements with American
Express Financial Corporation (AEFC) for providing administrative services
and serving as transfer agent.
Under its Administrative Services Agreement, the Fund pays AEFC a fee 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. Additional administrative service expenses paid by the Fund are
office expenses, consultants' fees and compensation of officers and
employees. Under this agreement, the Fund also pays taxes, audit and
certain legal fees, registration fees for shares, compensation of board
members, corporate filing fees, organizational expenses, and any other
expenses properly payable by the Fund approved by the board.
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:
oClass A $15
oClass B $16
oClass 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. 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.
Sales charges received by American Express Financial Advisors Inc. for
distributing Fund shares were $1,819,075 for Class A and $76,631 for Class
B for the six months ended April 30, 1997.
During the six months ended April 30, 1997, the Fund's transfer agency
fees were reduced by $31,069 as a result of earning credits from overnight
cash balances.
3. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
Six months ended April 30, 1997
Class A Class B Class Y
Sold 47,851,239 9,896,240 759,799
Issued for reinvested
distributions 12,112,236 2,150,299 269,701
Redeemed (46,266,337) (2,089,207) (516,654)
----------- ---------- --------
Net increase 13,697,138 9,957,332 512,846
Year ended Oct. 31, 1996
Class A Class B Class Y
Sold 88,252,347 18,190,526 2,116,472
Issued for reinvested
distributions 2,550,087 100,919 81,068
Redeemed (66,749,101) (956,204) (3,202,166)
----------- -------- ----------
Net increase (decrease) 24,053,333 17,335,241 (1,004,626)
<PAGE>
<TABLE>
4. 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 changesa
<CAPTION>
Class A
1997b 1996 1995 1994 1993 1992 1991 1990c
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, $7.12 $6.37 $6.96 $6.30 $4.92 $5.03 $4.67 $5.00
beginning of period
Income from investment operations:
Net investment income .01 .08 .10 .04 .02 .04 .08 .04
Net gains (losses) .12 .83 (.59) .73 1.43 (.11) .36 (.37)
(both realized
and unrealized)
Total from investment .13 .91 (.49) .77 1.45 (.07) .44 (.33)
operations
Less distibutions:
Dividends from net (.22) (.13) (.05) (.02) (.03) (.04) (.08) --
investment income
Distributions from (.42) (.03) (.05) (.09) (.03) -- -- --
realized gains
Excess distributions of -- -- -- -- (.01) -- -- --
realized gains
Total distributions (.64) (.16) (.10) (.11) (.07) (.04) (.08) --
Net asset value, $6.61 $7.12 $6.37 $6.96 $6.30 $4.92 $5.03 $4.67
end of period
Ratios/supplemental data
Class A
1997b 1996 1995 1994 1993 1992 1991 1990c
Net assets, end of $934 $908 $659 $670 $244 $69 $38 $21
period (in millions)
Ratio of expenses to 1.32%e 1.37% 1.39% 1.38% 1.51% 1.72% 1.70% .81%e
average daily net
assetsd
Ratio of net income .74%e 1.45% 1.59% .85% .80% 1.16% 1.66% 2.99%e
to average daily
net assets
Portfolio turnover rate 91% 134% 90% 26% 27% 41% 33% 20%
(excluding short-term
securities) for the
underlying Portfolio
Total returnf 1.8% 14.5% (7.0%) 12.1% 29.9% (1.5%) 9.8% (6.7%)
Average brokerage $.0146 $.0094 -- -- -- -- -- --
commission rate
for the underlying
Portfoliog
aFor a share outstanding throughout the period. Rounded to the nearest cent.
bSix months ended April 30, 1997 (Unaudited).
cInception date. Period from May 29, 1990 to Oct. 31, 1990.
dEffective fiscal year 1996, expense ratio is based on total expenses of the
Fund before reduction of earnings credits on cash balances.
eAdjusted to an annual basis.
fTotal return does not reflect payment of a sales charge.
gEffective fiscal year 1996, the Fund is required to disclose an average
brokerage commission rate per share for security trades on which commissions are
charged. The comparability of this information may be affected by the fact that
commission rates per share vary significantly among foreign countries.
</TABLE>
<PAGE>
<TABLE>
Notes to financial statements
IDS Global Growth Fund
Fiscal period ended Oct. 31,
Per share income and capital changesa
<CAPTION>
Class B Class Y
1997b 1996 1995c 1997b 1996 1995c
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $7.05 $6.34 $5.82 $7.13 $6.38 $5.82
beginning of period
Income from investment operations:
Net investment income -- .05 .02 .02 .09 .06
Net gains on securities .10 .81 .50 .12 .83 .50
(both realized and
unrealized)
Total from investment .10 .86 .52 .14 .92 .56
operations
Less distributions:
Dividends from net (.19) (.12) -- (.23) (.14) --
investment income
Distributions from (.42) (.03) -- (.42) (.03) --
realized gains
Total distributions (.61) (.15) -- (.65) (.17) --
Net asset value, $6.54 $7.05 $6.34 $6.62 $7.13 $6.38
end of period
Ratios/supplemental data
Class B Class Y
1997b 1996 1995c 1997b 1996 1995c
Net assets, end of $200 $146 $21 $21 $19 $24
period (in millions)
Ratio of expenses to 2.09%e 2.14% 2.16%e 1.14%e 1.19% 1.20%e
average daily net assetsd
Ratio of net income to --%e 1.05% .85%e .91%e 1.60% 2.37%e
average daily net assets
Portfolio turnover rate 91% 134% 90% 91% 134% 90%
(excluding short-term
securities) for the
underlying Portfolio
Total returnf 1.4% 13.6% 8.9% 1.9% 14.7% 9.6%
Average brokerage $.0146 $.0094 -- $.0146 $.0094 --
commission rate
for the underlying
Portfoliog
aFor a share outstanding throughout the period. Rounded to the nearest cent.
bSix months ended April 30, 1997 (Unaudited).
cInception date was March 20, 1995.
dEffective fiscal year 1996, expense ratio is based on total expenses of the
Fund before reduction of earnings credits on cash balances.
eAdjusted to an annual basis.
fTotal return does not reflect payment of a sales charge.
gEffective fiscal year 1996, the Fund is required to disclose an average
brokerage commission rate per share for security trades on which commissions are
charged. The comparability of this information may be affected by the fact that
commission rates per share vary significantly among foreign countries.
The tables below show certain important financial information for evaluating the
Fund's results.
</TABLE>
<PAGE>
<TABLE>
Financial statements
Statement of assets and liabilities
World Growth Portfolio
April 30, 1997
Assets
<CAPTION>
(Unaudited)
Investments in securities, at value (Note 1)
Investments in securities of unaffiliated issuers
<S> <C>
(identified cost $1,257,835,586) $1,285,501,619
Investments in securities of affiliated issuers
(identified cost $7,007,517) 9,026,250
Dividends and accrued interest receivable 2,253,184
Receivable for investment securities sold 15,526,546
Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 4) 20,614
U.S. government securities held as collateral (Note 5) 23,655,790
----------
Total assets 1,335,984,003
-------------
Liabilities
Disbursements in excess of cash on demand deposit 9,106,667
Payable for investment securities purchased 24,135,290
Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 4) 35,303
Payable upon return of securities loaned (Note 5) 146,543,265
Accrued investment management services fee 23,725
Other accrued expenses 126,568
-------
Total liabilities 179,970,818
Net assets $1,156,013,185
--------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Financial statements
Statement of operations
World Growth Portfolio
Six months ended April 30, 1997
Investment income
<CAPTION>
(Unaudited)
Income:
<S> <C>
Interest $ 4,756,799
Dividends (net of foreign taxes withheld of $418,317) 6,914,550
Dividends earned on affiliated issuers 48,661
------
Total income 11,720,010
----------
Expenses (Note 2):
Investment management services fee 4,299,585
Compensation of board members 11,759
Custodian fees 503,378
Audit fees 9,750
Administrative services fees and expenses 5,931
Other 9,698
-----
Total expenses 4,840,101
Earnings credits on cash balances (Note 2) (9,667)
------
Total net expenses 4,830,434
---------
Investment income -- net 6,889,576
Realized and unrealized gain (loss) -- net
Net realized loss on security and foreign currency transactions
(including loss of $880,752 from foreign currency transactions
and a realized gain of $12,720 from sale of affiliated issuer) (Note 3) (10,549,951)
Net realized loss on financial futures contracts (226,454)
Net realized gain on option contracts written (Note 1) 1,128,600
---------
Net realized loss on investments and foreign currencies (9,647,805)
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 24,035,766
Net gain on investments and foreign currencies 14,387,961
----------
Net increase in net assets resulting from operations $21,277,537
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statements of changes in net assets
World Growth Portfolio
Operations
<CAPTION>
Six months ended For the period from
April 30, 1997 May 13, 1996*
(Unaudited) to Oct. 31, 1996
<S> <C> <C>
Investment income-- net $ 6,889,576 $ 12,183,646
Net realized gain (loss) on investments and foreign currencies (9,647,805) 27,471,267
Net change in unrealized appreciation or depreciation of investments
and on translation of assets and liabilities in foreign currencies 24,035,766 (63,955,989)
---------- -----------
Net increase (decrease) in net assets resulting from operations 21,277,537 (24,301,076)
Net contributions 61,331,758 1,097,654,966
---------- -------------
Total increase in net assets 82,609,295 1,073,353,890
Net assets at beginning of period (Note 1) 1,073,403,890 50,000
------------- ------
Net assets at end of period $1,156,013,185 $1,073,403,890
============== ==============
*Commencement of operations
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to financial statements
World Growth Portfolio
(Unaudited as to April 30, 1997)
1. Summary of significant accounting policies
World Growth Portfolio (the Portfolio) is a series of World Trust (the
Trust) and is registered under the Investment Company Act of 1940 (as
amended) as a diversified, open-end management investment company. World
Growth Portfolio seeks to provide a long-term growth of capital by
investing primarily in common stocks and securities convertible into
common stocks of companies throughout the world. The Declaration of Trust
permits the Trustees to issue non-transferable interests in the Portfolio.
On April 15, 1996, American Express Financial Corporation (AEFC)
contibuted $50,000 to the Portfolio. Operations did not formally commence
until May 13, 1996, at which time an existing fund transferred its assets
to the Portfolio in return for an ownership percentage of the Portfolio.
Significant accounting polices followed by the Portfolio 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.
Option transactions
In order to produce incremental earnings, protect gains and facilitate
buying and selling of securities for investment purposes, the Portfolio
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 Portfolio 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 Portfolio gives up the opportunity of
profit if the market price of the security increases. The risk in writing
a put option is that the Portfolio 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 Portfolio pays a premium whether or not the option is
exercised. The Portfolio 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
Portfolio 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 Portfolio may buy and sell financial futures contracts traded on any
U.S. or foreign exchange. The Portfolio 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 Portfolio 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 Portfolio 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 Portfolio 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.
The Portfolio 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 Portfolio and the resulting unrealized
appreciation or depreciation are determined using foreign currency
exchange rates from an independent pricing service. The Portfolio is
subject to the credit risk that the other party will not complete the
obligations of the contract.
Federal taxes
For federal income tax purposes the Portfolio qualifies as a partnership
and each investor in the Portfolio is treated as the owner of its
proportionate share of the net assets, income, expenses and realized and
unrealized gains and losses of the Portfolio. Accordingly, as a
"pass-through" entity, the Portfolio does not pay any income dividends or
capital gain distributions.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Dividend income is recognized on the ex-dividend date
or upon receipt of ex-dividend notification in the case of certain foreign
securities. Interest income, including level-yield amortization of premium
and discount, is accrued daily.
2. Fees and expenses
The Trust, on behalf of the Portfolio, has entered into an Investment
Management Services Agreement with AEFC for managing its portfolio. Under
this agreement, AEFC determines which securities will be purchased, held
or sold. The management fee is a percentage of the Portfolio's average
daily net assets in reducing percentages from 0.8% to 0.675% annually.
Under the agreement, the Trust also pays taxes, brokerage commissions and
nonadvisory expenses, which include custodian fees to be paid to an
affiliate of AEFC, audit and certain legal fees, fidelity bond premiums,
registration fees for units, office expenses, consultants' fees,
compensation of trustees, corporate filing fees, expenses incurred in
connection with lending securities of the Portfolio, and any other
expenses properly payable by the Trust or Portfolio, approved by the
board.
During the six months ended April 30, 1997, the Portfolio's custodian fees
were reduced by $9,667 as a result of earnings credits from overnight cash
balances.
Pursuant to a Placement Agency Agreement, American Express Financial
Advisors Inc. acts as placement agent of the units of the Trust.
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $1,053,751,750 and $952,721,999,
respectively, for the six months ended April 30, 1997. For the same
period, the portfolio turnover rate was 91%. Realized gains and losses are
determined on an identified cost basis.
Brokerage commissions paid to brokers affiliated with AEFC were $32,357
for this period.
4. Foreign currency contracts
At April 30, 1997, the Portfolio had entered into 21 foreign currency
exchange contracts that obligate the Portfolio to deliver currencies at
specified future dates. The unrealized appreciation and/or depreciation
(see Summary of significant accounting policies) on these contracts is
included in the accompanying financial statements. The terms of the open
contracts are as follows:
Exchange date Currency to Currency to Unrealized Unrealized
be delivered be received appreciation depreciation
May 1, 1997 794,246 100,189,374 $ -- $ 5,012
U.S. Dollar Japanese Yen
May 1, 1997 638,147 495,139 -- 2,648
Australian Dollar U.S. Dollar
May 1, 1997 33,391,689 265,241 2,200 --
Japanese Yen U.S. Dollar
May 2, 1997 594,531 15,523,200 -- 285
U.S. Dollar Thailand Baht
May 2, 1997 1,739,719 1,348,909 -- 8,159
Australian Dollar U.S. Dollar
May 2, 1997 5,645,044 213,811 -- 260
Philippine Peso U.S. Dollar
May 2, 1997 326,637,300 134,535 116 --
Indonesian Rupiah U.S. Dollar
May 2, 1997 14,609,687 1,834,927 -- 4,042
Mexican Peso U.S. Dollar
May 5, 1997 3,870,139 3,017,354 -- 1,548
Australian Dollar U.S. Dollar
May 5, 1997 5,214,987 197,575 -- 187
Philippine Peso U.S. Dollar
May 5, 1997 118,777,200 48,900 20 --
Indonesian Rupiah U.S. Dollar
May 5, 1997 411,238,035 169,074 -- 160
Indonesian Rupiah U.S. Dollar
May 6, 1997 854,466 525,793 -- 2,366
U.S. Dollar British Pound
May 6, 1997 145,309 3,792,855 -- 114
U.S. Dollar Thailand Baht
May 6, 1997 3,641,959 16,193,608 -- 81
U.S. Dollar South African Rand
May 6, 1997 9,845,671 372,857 -- 509
Philippine Peso U.S. Dollar
May 6, 1997 13,121,528 103,376 12 --
Japanese Yen U.S. Dollar
May 6, 1997 194,868,844 80,104 -- 89
Indonesian Rupiah U.S. Dollar
May 7, 1997 1,605,075 2,619,451 18,266 --
British Pound U.S. Dollar
May 7, 1997 95,911 2,505,283 -- 6
U.S. Dollar Thailand Baht
May 30, 1997 2,670,473 15,528,800 -- 9,837
------ -----
U.S. Dollar French Franc
$20,614 $35,303
<PAGE>
5. Lending of portfolio securities
At April 30, 1997, securities valued at $133,366,952 were on loan to
brokers. For collateral, the Portfolio received $122,887,475 in cash and
U.S. government securities valued at $23,655,790. Income from securities
lending amounted to $582,319 for the period ending April 30, 1997. The
risks to the Portfolio of securities lending are that the borrower may not
provide additional collateral when required or return the securities when
due.
<PAGE>
Investments in securities
World Growth Portfolio
April 30, 1997 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities of unaffiliated issuers
Common stocks (85.5%)
Issuer Shares Value(a)
Argentina (3.9%)
Banks and savings & loans (0.6%)
Banco de Galicia 300,000(d) $7,298,438
Financial services (0.5%)
IRSA 150,000 5,250,000
Metals (0.5%)
Siderar ADR 200,000 6,300,000
Multi-industry conglomerates (1.1%)
Perez Companc 625,000 10,050,000
Cresud ADR 138,700(c) 2,548,613
Total 12,598,613
Utilities -- telephone (1.2%)
Telecom Argentina ADR 165,000(d) 8,250,000
Telefonica De Argentina 160,000 5,320,000
Total 13,570,000
Australia (3.2%)
Banks and savings & loans (0.8%)
Commonwealth Bank
of Australia 1,250,000(d) 9,360,593
Energy (0.5%)
Woodside Petroleum 720,000 5,728,683
Insurance (0.5%)
Natl Mutual Holdings 4,067,271(c,d) 6,028,074
Metals (0.5%)
Pasminco 3,000,000(c) 5,709,960
Multi-industry conglomerates (0.9%)
Pacific Dunlop 4,000,000(d) 10,795,884
Austria (0.6%)
Utilities -- electric
EVN Energie-Versorgung
Niederoesterreich 60,000 7,420,904
Bahamas (0.7%)
Restaurants & lodging
Sun Intl Hotels 275,000(c) 8,353,125
Brazil (1.6%)
Utilities -- telephone
Telecomunicacoes Brasileiras -
Telebras ADR 162,500 $18,646,875
Canada (4.1%)
Banks and savings & loans (0.7%)
Royal Bank of Canada 200,000 7,997,134
Communications equipment & services (0.6%)
Northern Telecom 100,000 7,262,500
Health care (0.6%)
Biovail Intl 300,000(c,d) 7,500,000
Industrial equipment & services (1.0%)
Bombardier Cl B 550,000 11,104,346
Metals (0.3%)
Euro-Nevada Mining 93,500 2,684,338
Euro-Nevada Mining 18,900(b) 542,610
Total 3,226,948
Real estate (0.1%)
Intrawest 115,000(c) 1,581,250
Utilities -- telephone (0.8%)
BCE 200,000(d) 9,325,000
Chile (0.7%)
Beverages & tobacco
Embotelladora Andina ADR
Series A 260,000 5,200,000
Series B 140,000 2,747,500
Total 7,947,500
Finland (1.8%)
Industrial equipment & services (0.9%)
Valmet 600,000 10,142,405
Multi-industry conglomerates (0.9%)
Amer Group 600,000(d) 10,269,329
France (4.8%)
Automotive & related (2.2%)
Michelin 295,000 16,482,395
Valeo 150,000 9,252,120
Total 25,734,515
Chemicals (0.7%)
Cie Generale Des Eaux 60,000 8,357,749
Electronics (0.8%)
SGS-THOMSON
Microelectronics 115,000(c) 9,013,125
Energy (1.1%)
Elf Aquitaine 135,000 13,091,750
Germany (4.3%)
Automotive & related (2.9%)
BMW 12,000(d) 9,828,736
Daimler-Benz ADR 75,000(d) 5,578,125
Volkswagen 28,000(d) 17,806,787
Total 33,213,648
Electronics (0.9%)
Siemens 200,000 10,836,101
Textiles & apparel (0.5%)
Adidas 50,000 5,212,996
Ghana (0.2%)
Metals
Ashanti Goldfields 199,075 2,174,037
Greece (0.2%)
Financial services
Natl Investment 45,530 1,979,252
Hong Kong (2.7%)
Financial services (1.3%)
Cheung Kong 575,000 5,047,440
New World Development 1,000,000 5,770,347
Sun Hung Kai Properties 400,000 4,337,442
Total 15,155,229
Insurance (0.8%)
Natl Mutual Asia 8,566,000 8,846,314
Multi-industry conglomerates (0.6%)
Wharf Holdings 2,000,000 7,564,706
Hungary (0.1%)
Banks and savings & loans
Euronet Services 113,000(c) 1,419,563
India (0.2%)
Automotive & related
Tata Engineering &
Locomotive GDR 200,000 2,430,000
Indonesia (0.5%)
Banks and savings & loans (0.2%)
PT Bank Bali 929,000 2,236,481
Real estate (0.3%)
PT Jaya Real Properties 2,502,500(c) 3,243,981
Ireland (0.2%)
Food
Greencore Group 500,000 2,552,426
Japan (7.6%)
Communications equipment & services (1.2%)
DDI 875 5,810,587
Hitachi 600,000 5,435,425
Oki Electric 500,000(d) 2,453,819
Total 13,699,831
Computers & office equipment (0.4%)
Meitec 250,000 5,002,166
Electronics (2.7%)
Matsushita Electric 375,000 5,996,691
Mitsumi Electric 400,000(d) 8,413,092
NEC 725,000 8,852,259
Shinko Electric 220,000(c,d) 7,538,698
Total 30,800,740
Financial services (0.8%)
Nomura Securities 700,000 7,830,162
TOC 103,000 965,536
Total 8,795,698
Health care (0.4%)
Sankyo 180,000 4,820,985
Media (0.7%)
Sony 40,000 2,911,497
Sony ADR 70,700 5,187,613
Total 8,099,110
Multi-industry conglomerates (0.5%)
Secom 100,000 5,947,458
Utilities -- electric (0.9%)
Hirose Electric 80,000 4,373,548
Sumitomo Electic 475,000(c) 6,435,858
Total 10,809,406
Malaysia (2.5%)
Automotive & related (0.8%)
Diversified Resources 4,000,000(c) 9,559,848
Leisure time & entertainment (0.8%)
Multi-Purpose Holdings 6,000,000 9,798,840
Multi-industry conglomerates (0.6%)
China North Inds
Investment 4,980,000(c) 2,016,900
Leader Universal
Holdings 2,400,000(c) 4,779,924
Total 6,796,824
Utilities -- electric (0.3%)
Tenaga Nasional 618,000(c) 2,855,526
Mexico (2.7%)
Beverages and tobacco (0.7%)
Femsa 1,800,000 8,496,432
Building materials & construction (0.7%)
Cemex 448,000(c) 1,488,728
Empresas ICA Sociedad
Controladora 400,000(d) 5,950,000
Total 7,438,728
Multi-industry conglomerates (0.4%)
Grupo Financiero
Banorte 5,000,000(c) 4,883,850
Utilities -- telephone (0.9%)
Telefonos de Mexico 250,000 $10,312,500
Netherlands (2.0%)
Industrial equipment & services (1.2%)
Stork 307,894 13,263,321
Transportation (0.8%)
Nedlloyd 400,000(d) 9,180,294
Peru (1.1%)
Banks and savings & loans (0.7%)
Credicorp 360,000 7,560,000
Utilities -- telephone (0.4%)
CPT Telefonica 500,000(c) 1,200,750
Telefonica del Peru ADR 153,500(c) 3,684,000
Total 4,884,750
Philippines (1.2%)
Electronics (0.1%)
Solid Group 7,500,000(c) 1,592,715
Multi-industry conglomerates (0.6%)
Belle 29,046,400(c) 6,939,388
Paper & packaging (0.5%)
Intl Container Service 10,000,000(c) 5,877,890
South Africa (0.3%)
Energy equipment & services
Sasol 285,200 3,655,999
Spain (1.8%)
Energy (0.5%)
Repsol ADR 125,000(d) 5,234,375
Utilities -- telephone (1.3%)
Telefonica de Espana ADR 200,000(d) 15,400,000
Sweden (0.9%)
Communications equipment & services (0.5%)
Ericsson (LM) ADR 160,000 5,380,000
Health care services (0.4%)
Getinge Industrier Cl B 270,000(d) 4,749,703
Switzerland (1.1%)
Banks and savings & loans (0.6%)
Credit Suisse Group 60,000(d) 6,754,832
Health care (0.5%)
Novartis 4,200 5,531,638
Thailand (0.7%)
Building materials & construction (0.7%)
Italian-Thai Development 2,211,800 7,450,907
Miscellaneous (--%)
Southeast Asia Frontier 170,000(c) 382,500
United Kingdom (9.5%)
Airlines (0.7%)
British Airways 728,736 8,337,724
Building materials & construction (0.5%)
TI Group 650,000 5,556,591
Computers & office equipment (0.8%)
JBA Holdings 700,000 9,245,454
Electronics (0.7%)
Johnson Matthey 1,000,000 8,111,042
Energy (0.9%)
Lasmo 2,725,000 9,892,069
Furniture & appliances (0.6%)
Dixons Group 900,000 7,380,158
Health care (1.5%)
Biocompatibles Intl 525,000(c) 12,060,212
British Biotech 1,300,000(c) 5,087,835
Total 17,148,047
Leisure time & entertainment (1.1%)
Ladbroke Group 3,523,485 13,218,920
Multi-industry conglomerates (0.9%)
Inchcape 2,250,000 9,990,923
Paper & packaging (1.8%)
Freepages Group 17,333,000(c) $11,376,306
Pearson 800,000 9,185,492
Total 20,561,798
United States (24.3%)
Aerospace & defense (1.7%)
Boeing 100,000 9,862,500
Hexcel 575,000(d) 10,278,125
Total 20,140,625
Automotive & related (0.7%)
General Motors 150,000 8,681,250
Computers & office equipment (4.3%)
Compaq 105,000(c) 8,964,375
First Data 275,000 9,487,500
Ikon Office Solutions 140,000 3,762,500
Ingram Micro 275,000(c) 6,256,250
Oracle 250,000(c) 9,937,500
Xerox 180,000 11,070,000
Total 49,478,125
Electronics (0.6%)
Lattice Semiconductor 125,000(c) 6,984,375
Energy (2.2%)
Nabors Inds 265,000(c) 4,968,750
Noble Affiliates 50,000 1,787,500
OMV 60,000 6,549,304
United Meridian 190,000(c) 5,391,250
Unocal 175,000 6,671,874
Total 25,368,678
Energy equipment & services (2.8%)
Camco Intl 125,000(d) 5,546,875
Dresser Inds 400,000 11,950,000
ENSCO Intl 75,000(c) 3,562,500
Noble Drilling 200,000(c) 3,475,000
Schlumberger 75,000 8,306,250
Total 32,840,625
Health care (2.7%)
Amgen 100,000(c) 5,887,500
Biogen 175,000(c) 5,600,000
Boston Scientific 185,000(c) 8,926,250
Lilly (Eli) 65,000 5,711,875
Merck 50,000 4,525,000
Total 30,650,625
Health care services (0.7%)
HBO & Co 150,000 8,025,000
Insurance (1.1%)
Prudential 1,250,000(c) 12,164,537
Metals (3.7%)
Aluminum Co of America 140,000 9,782,500
Getchell Gold 150,000(c) 5,756,250
Stillwater Mining 700,000(c) 14,087,500
UCAR Intl 325,000(c) 13,650,000
Total 43,276,250
Multi-industry conglomerates (0.6%)
Westinghouse 405,000 6,885,000
Paper & packaging (1.0%)
Crown Cork & Seal 130,000 7,117,500
Unisource 300,000 4,425,000
Total 11,542,500
Retail (1.2%)
American Stores 150,000 6,825,000
Circuit City 165,000 6,538,125
Total 13,363,125
Transportation (0.4%)
Hvide Marine Cl A 250,000(c) 4,312,500
Utilities -- telephone (0.6%)
Airtouch Communications 280,000(c) 7,140,000
Total common stocks of unaffiliated issuers
(Cost: $961,019,087) $988,731,629
Bonds (1.5%)
Issuer and Principal Value(a)
coupon rate amount
Argentina (0.5%)
Banco de Galicia
(U.S. Dollar)
7.00% Cv 2002 $5,000,000 $5,725,000
Hong Kong (0.3%)
China Resources Beijing Land
(U.S. Dollar)
2.00% Cv 2004 3,000,000(b) 3,000,000
India (0.4%)
Mahindra & Mahindra
(U.S. Dollar)
5.00% 2001 4,000,000(b) 4,160,000
Luxembourg (0.3%)
Scandinavian Broadcast
(U.S. Dollar)
7.25% Cv 2005 4,500,000 4,038,750
Total bonds
(Cost: $14,351,995) $16,923,750
Other (__%)
Issuer Shares Value(a)
Germany (__%)
Daimler-Benz AG 75,000 $4,688
Rights
Hong Kong (__%)
Lai Sun Hotels Intl
Warrants 602,110(e) --
Malaysia (__%)
Multi-Purpose Holdings
Warrants 6,600,000 7
Total other
(Cost: $2,619,048) $4,695
Short-term securities (24.2%)
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
U.S. government agency (0.1%)
Federal Home Loan Mtge Corp Disc Nt
05-08-97 5.43% $1,669,000 $1,667,244
Commercial paper (19.9%)
Abbott Laboratories
05-12-97 5.49 2,500,000 2,495,821
Albertson's
05-06-97 5.58 1,900,000 1,898,535
ABN Amro
05-23-97 5.52 9,440,000 9,408,271
07-30-97 5.67 6,000,000 5,911,275
American General Finance
06-09-97 5.58 5,000,000(f) 4,970,046
AT&T Capital
06-02-97 5.54 6,500,000 6,468,222
06-06-97 5.49 5,400,000 5,370,516
Ameritech Capital Funding
05-27-97 5.47 3,300,000 3,287,011
06-10-97 5.53 6,000,000 5,963,333
Associates Corp North America
05-01-97 5.55 12,400,000 12,400,000
BOC Group
05-02-97 5.57 6,100,000(f) 6,099,060
BHP Finance
05-13-97 5.58 8,000,000 7,985,200
CAFCO
05-07-97 5.58 5,900,000(f) 5,894,542
05-29-97 5.54 4,100,000 4,082,397
Cargill
06-24-97 5.57 1,700,000 1,685,689
Ciesco LP
05-05-97 5.37 4,100,000(f) 4,097,572
05-12-97 5.54 800,000(f) 798,651
05-27-97 5.53 6,000,000 5,976,167
06-04-97 5.57 2,200,000 2,188,510
06-18-97 5.62 7,700,000 7,642,712
Clorox
06-16-97 5.60 6,500,000 6,453,821
Commercial Credit
06-05-97 5.56 3,900,000 3,879,032
Dean Witter, Discover &Co
06-13-97 5.61 6,100,000 6,059,489
06-20-97 5.60 5,600,000 5,556,755
Fleet Funding
05-14-97 5.57 4,900,000(f) 4,890,197
Ford Motor Credit
06-10-97 5.59 4,900,000 4,869,783
Gannett
06-02-97 5.53 9,000,000(f) 8,956,000
General Electric Capital
06-17-97 5.60 6,000,000 5,956,447
Goldman Sachs Group
05-21-97 5.55 6,600,000 6,579,760
Merrill Lynch
05-30-97 5.58 6,500,000 6,470,940
Metlife Funding
06-19-97 5.62 8,800,000 8,733,164
Morgan Stanley Group
05-20-97 5.53 3,300,000 3,290,403
05-23-97 5.54 8,500,000 8,471,327
06-10-97 5.59 700,000 695,676
Novartis
05-22-97 5.51 7,000,000(f) 6,977,583
Paccar Financial
05-22-97 5.50 6,000,000 5,980,820
05-28-97 5.52 3,200,000 3,186,800
Proctor & Gamble
06-06-97 5.54 5,000,000 4,972,500
SBC Communications Capital
05-29-97 5.54 6,200,000(f) 6,173,430
06-03-97 5.53 8,500,000(f) 8,457,146
SAFECO Credit
05-02-97 5.35 6,500,000 6,499,041
Unilever Capital
06-02-97 5.56 2,200,000(f) 2,189,205
Total 229,922,849
Letters of credit (4.2%)
ABN Amro -
Formosa Plastics
05-30-97 5.53 10,000,000 9,955,453
Bank of America -
AES Barbers Point
05-15-97 5.52 5,500,000 5,488,236
Bank of America -
Formosa Plastics
05-15-97 5.54 7,000,000 6,985,001
Credit Agricole -
Louis Dreyfus Corp
05-27-97 5.52 4,900,000 4,880,448
First Bank Natl Association -
Midwest Commercial Paper
05-09-97 5.58 5,000,000(f) 4,993,833
Student Loan Marketing Assn -
USA Group
05-02-97 5.53 2,800,000 2,799,572
Toronto Dominion Bank -
Franciscan Services
05-16-97 5.52 2,800,000 2,793,560
WestDeutsche Landesbank -
Comision Federal De Electricidad
05-29-97 5.52 10,400,000 10,355,349
Total 48,251,452
Total short-term securities
(Cost: $279,845,456) $279,841,545
Total investments in securities of unaffiliated issuers (g)
(Cost: $1,257,835,586) $1,285,501,619
Investments in securities of affiliated issuer (g)
Common stock (0.8%)
Issuer Shares Value(a)
Peru
Metals
Buenaventura ADR 415,000$ 9,026,250
Total investments in securities of affiliated issuers
(Cost: $7,007,517) $ 9,026,250
Total investments in securities
(Cost: $1,264,843,103)(h) $1,294,527,869
See accompanying notes to investments in securities.
<PAGE>
Investments in securities
World Growth Portfolio
April 30, 1997 (Unaudited)
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) Non-income producing.
(d) Security is partially or fully on loan. See Note 5 to the financial
statements.
(e) Negligible market value.
(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. Transactions with companies that are or were affiliates during the
six months ended April 30, 1997 are as follows:
Issuer Beginning Purchase Sales Ending Dividend
cost cost cost cost income
Buenaventura
ADR $2,990,000 $4,017,517 $ -- $7,007,517 $48,661
Oliver Gold 1,415,994 -- 1,415,994 -- --
--------- ----- --------- ---- ----
Total $4,405,994 $4,017,517 $1,415,994 $7,007,517 $48,661
(h) At April 30, 1997, the cost of securities for federal income tax purposes
was approximately $1,264,843,000 and the approximate aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $86,344,000
Unrealized depreciation (56,659,000)
-----------
Net unrealized appreciation $29,685,000
<PAGE>
Board members and officers of the Fund
President and interested
board member
William R. Pearce
Chairman of the board, Board Services Corporation (provides
administrative services to boards including the boards of the IDS and
IDSLife funds and Master Trust portfolios).
Independent
board members
H. Brewster Atwater Jr.
Former chairman and chief executive officer, General Mills, Inc.
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 Reader's Digest Association, Inc.
Alan K. Simpson
Former United States senator for Wyoming.
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
Senior advisor to the chief executive officer, 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
Senior vice president, AEFC. Vice president - Investments for the Fund.
Melinda S. Urion
Senior vice president and chief financial officer, AEFC. Treasurer for the
Fund.
Other officer
Leslie L. Ogg
President, treasurer and corporate secretary of Board Services
Corporation. Vice president, general counsel and secretary for the Fund.
Refer to the SAI for the board members' and officers' biographies.
<PAGE>
IDS mutual funds
Global/International funds
Funds in this group seek capital growth and/or income by investing primarily in
foreign securities. Foreign investments may be subject to currency fluctuations
and political and economic risks of the countries in which the investments are
made. They are high risk mutual funds with a potential for high reward.
IDS Emerging Markets Fund
Invests in a Portfolio comprised primarily of stocks of companies in developing
countries throughout the world that are believed to offer growth potential.
Seeks to provide long-term growth of capital.
(icon of) world globe
IDS Global Growth Fund
Invests in a Portfolio comprised primarily of 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 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 Global Balanced Fund
Invests in stocks-and bonds in, for the most part, major markets throughout the
world, including the U.S. Seeks to provide a balance of growth of capital and
current income.
(icon of) scale of globes
IDS Global Bond Fund
Invests in a Portfolio comprised primarily of debt securities of U.S. and
foreign issuers to seek high total return through income and growth of capital.
(icon of) globe
Growth funds
Funds in this group seek capital growth, primarily from common stocks. They are
high risk mutual funds with a potential for high reward.
IDS 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. A
highly aggressive and speculative fund that seeks long-term growth of capital.
(icon of) cart of precious gems
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 Small Company Index Fund
Invests in all or a representative group of the equity securities comprising the
S&P SmallCap 600 Index, as it strives to provide long-term capital appreciation.
(icon of) building
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 Research Opportunities Fund
Invests in a Portfolio comprised primarily of equity securities of companies
included in the S&P 500 Index that are believed to have strong growth potential.
The Portfolio is managed using a research methodology by the Research Department
of AEFC. Goal is long-term appreciation.
(icon of) magnifying glass
IDS Growth Fund
Invests in a Portfolio comprised primarily of 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 New Dimensions Fund
Invests in a Portfolio comprised primarily of 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
Growth and income funds
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.
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 Managed Allocation Fund
Invests in a Portfolio comprised primarily of U.S. equity securities, U.S. and
foreign debt securities, foreign equity securities and money market instruments.
The Fund provides diversification among these major investment categories and
has a target mix that represents the way the Fund's investments will be
allocated over the long term. Seeks maximum total return.
(icon of) spinning toy
IDS Stock Fund
Invests in a Portfolio comprised primarily of 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 in a Portfolio comprised 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 Portfolio which seeks to 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
Income funds
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 Extra Income Fund
Invests in a Portfolio comprised 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
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 a Portfolio comprised primarily of 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 in a Portfolio comprised primarily of 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 funds
These funds provide tax-free income by investing in municipal bonds. The income
is generally free from federal income tax, but a portion of the income may be
subject to state and local taxes. Risk varies by bond quality.
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
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 High Yield Tax-Exempt Fund
Invests in a Portfolio comprised primarily of medium- and lower-quality
municipal bonds and notes. Lower-quality securities generally involve greater
risk of principal and income.
(icon of) shield with basket of apples enclosed
IDS Intermediate Tax-Exempt Fund
Invests in mainly investment-grade bonds and other debt securities with
intermediate-term maturities issued by state and local government units. Goal is
to seek a high level of current income exempt from federal taxes.
(icon of) shield with tree enclosed
Money market funds
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current
income consistent with these objectives. An investment in
these funds is neither insured nor guaranteed by the U.S. government,
and there can be no assurance that these funds
will be able to maintain a stable net asset value of $1.00
per share. 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
For more 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>
Quick telephone reference
American Express Financial Advisors 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
TTY Service
For the hearing impaired
800-846-4852
American Express Financial Advisors Easy Access Line
Automated account information (TouchTone(R) phones only), including current fund
prices and performance, account values and recent account transactions
800-862-7919
<PAGE>
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS Global Growth Fund
IDS Tower 10
Minneapolis, MN 55440-0010
