-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, ixCg1kNIGikyEDhPQErq1nBfdrTid8eqR6+XGhmNJs+CAQx9lWiCBaYeS69Y3Glf 6MZrPOQdbMZeqYSBMYxDmQ== 0000820027-94-000159.txt : 19940323 0000820027-94-000159.hdr.sgml : 19940323 ACCESSION NUMBER: 0000820027-94-000159 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940131 FILED AS OF DATE: 19940322 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS GROWTH FUND INC CENTRAL INDEX KEY: 0000049702 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 410329910 STATE OF INCORPORATION: MN FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 40 SEC FILE NUMBER: 811-02111 FILM NUMBER: 94517156 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6126712772 N-30D 1 GROWTH JAN. 1994 SEMIANNUAL REPORT PAGE 1994 SEMIANNUAL REPORT IDS Growth Fund, Inc. Picture of: Optic fibers Invests in companies with growth opportunities to seek capital appreciation IDS An American Express company American Express Distributed by IDS Financial Services Inc. PAGE IDS Growth Fund, Inc. Message from the President _____________________________________________________________________ Picture of William R. Pearce Dear Shareholder, In an up-and-down period for growth stocks, IDS Growth Fund provided a positive return for shareholders in the first half of its fiscal year as telecommunications, technology and foreign stocks remain favorable holdings in the Fund. This Fund's primary investment policy centers on purchasing stocks of larger companies that offer long-term growth opportunities. Generally, these companies have strong balance sheets and above-average earnings that are used to expand their businesses rather than pay dividends. The stock prices of these companies often increase or decrease faster than the stock prices of companies that pay out substantial portions of their earnings as dividends. During the past period, growth stocks experienced considerable price swings that were reflected in the net asset value of the Fund's shares. Remember the investing for capital accumulation required a long-term perspective. An effective way of making market fluctuations work to your advantage is dollar-cost averaging. This systematic investment strategy involves making regular investments of fixed amounts of money. It allows you to average the cost of buying shares since your fixed investment buys more shares when the price per share is low and fewer shares when the price per share is high. While this does not ensure a profit and does not protect against a loss if the market declines, it is an effective way for many shareholders who can continue investing through changing market conditions to accumulate shares in a fund to meet long-term goals. IDS Growth Fund is an especially appropriate fund for using dollar-cost averaging. Your IDS personal financial planner also can help you make sure your investment and protection strategies continue to meet the objectives in your financial plan. As your objectives and time horizons change, talk to your planner about the broad range of IDS products and services designed to help you meet your investment and protection needs. Sincerely, William R. Pearce President IDS Growth Fund, Inc. March 7, 1994 On the cover: In the era of information service, fiber optics is an important component in telecommunications. IDS Growth Fund invests in stocks of telecommunications companies. PAGE IDS Growth Fund, Inc. From Your Portfolio Manager: A Perspective _____________________________________________________________________ Picture of: Mitzi Malevich Mitzi Malevich became portfolio manager of the Fund in May 1992, after several years as a portfolio manager for IDS pension fund accounts. Prior to joining IDS in 1983, she served as a securities analyst and portfolio manager for a major insurance company. Despite a difficult market environment for growth stocks, IDS Growth Fund managed to register a healthy gain during the first half of the fiscal year. Holdings in telecommunications, technology and foreign stocks helped the Fund outperforn the stock market as a whole, based on the Standard & Poor's 500 Stock Index (an unmanaged list of larger stocks commonly used to measure market performance). The Fund turned in a solid performance in the summer months even though the market experiensed considerable fluctuations. We remained fully invested and committed to the Fund's strategy of investing in companies that have strong long-term growth fundamentals regardless of the economic outlook or market forecast. That long-term approach was not in favor in subsequent months, as investors tried to capitalize on market moves on a day-to-day basis. However the Fund managed to post above-average gains. A general downward market trend fueled by rising long-term interest rates in the latter half of October carried over into November and had an adverse effect on the Fund, but our foreign holdings continued to perform well and received a lift from passage of NAFTA (the North American Free Trade Agreement) late in the year. Telecommunications remains one of the strongest investment themes in the growth-stock arena. We have consistently added to our positions of companies in this industry, and these moves worked in the Fund's favor throughout the six-month period. The outlook for telecommunications stocks remains positive, as American telecommunications companies are lining up with their counterparts overseas to provide global telecommunications. This bodes well for investors in these companies because it will expand their market opportunities. Although regulations pertaining to telecommunications companies are fairly strict in the U.S. compared with other countries, we expect these regulations to ease so that U.S. companies can become more competitive. PAGE IDS Growth Fund, Inc. From Your Portfolio Manager: A Perspective (continued) _____________________________________________________________________ Another industry starting to look attractive is health care, which has been out of favor in the past year. Some companies are poised to benefit from whatever kind of health-care package passes the U.S. Congress. One such segment is health maintenance organization (HMOs), which are likely to become key players in the new world order of health care. Although techonology stocks were generally sluggish through the first several months of 1993, they performed well during the past six-month period. We have focused particularly on software companies and plan to continue adding to our positions here. We also still feel positive about the prospects for foreign stocks, but think that some international markets have advanced too far too quickly and may find future gains more difficult to come by. Therefore, we plan to be very selective about adding to our holdings there. In general, we think the U.S. market looks reasonably attractive, although the environment may not favor growth stocks as strongly as other types, such as value stocks. This means that stock selection based on company fundamentals and long-term prospects will be crucial to performance in the months ahead and investors should, like the Fund, maintain their long-term focus. PAGE IDS Growth Fund, Inc.
Ten Largest Holdings Jan. 31, 1994 ______________________________________________________________________________________________________________ Percent of Fund's Value Net Assets _____________________________________________________________________________________ Motorola $ 39,400,000 3.88% Semiconductors and communication equipment Cisco Systems 36,250,000 3.57 Computer network product manufacturer Oracle Systems 32,125,000 3.17 Markets database management software Microsoft 29,793,750 2.94 Microcomputer software Grupo Televisa 28,400,000 2.80 Television, radio production in Mexico Merrill Lynch 26,850,000 2.64 Investment, finance and insurance company Southwest Airlines 26,075,000 2.57 Mid-southwest U.S. airline service First Financial Management 23,650,000 2.33 Financial data processing services Walt Disney 23,625,000 2.33 Amusement parks, films and television Nucor 23,600,000 2.32 Steel joists, angles and rounds _____________________________________________________________________________________ Total $289,768,750 28.55% _____________________________________________________________________________________ /TABLE PAGE IDS Growth Fund, Inc. _____________________________________________________________________________________________________________
Statement of Assets and Liabilities Jan. 31, 1994 Assets _____________________________________________________________________________________________________________ (Unaudited) Investments in securities, at value (Note 1) (identified cost $711,592,291) $1,032,473,369 Receivable for investment securities sold 5,403,419 Dividends and accrued interest receivable 610,849 U.S. government securities held as collateral (Note 4) 1,805,209 _____________________________________________________________________________________________________________ Total assets 1,040,292,846 _____________________________________________________________________________________________________________ Liabilities _____________________________________________________________________________________________________________ Disbursements in excess of cash on demand deposit 5,419,252 Payable for investment securities purchased 620,000 Payable upon return of securities loaned (Note 4) 18,408,109 Accrued investment management and services fee 501,378 Accrued distribution fee 41,653 Accrued transfer agency fee 104,133 Other accrued expenses 238,507 _____________________________________________________________________________________________________________ Total liabilities 25,333,032 _____________________________________________________________________________________________________________ Net assets applicable to outstanding capital stock $1,014,959,814 _____________________________________________________________________________________________________________ Represented by _____________________________________________________________________________________________________________ Capital stock -- authorized 10,000,000,000 shares of $.01 par value; outstanding 55,379,856 shares $ 553,799 Additional paid-in capital 675,173,359 Undistributed net investment income 137,751 Accumulated net realized gain on investments (Note 1) 18,213,827 Unrealized appreciation of investments 320,881,078 _____________________________________________________________________________________________________________ Total -- representing net assets applicable to outstanding capital stock $1,014,959,814 _____________________________________________________________________________________________________________ Net asset value per share of outstanding capital stock $ 18.33 _____________________________________________________________________________________________________________ See accompanying notes to financial statements.
PAGE IDS Growth Fund, Inc. _____________________________________________________________________________________________________________
Statement of Operations Six months ended Jan. 31, 1994 Investment income _____________________________________________________________________________________________________________ (Unaudited) Income: Dividends $3,438,948 Interest 753,809 _____________________________________________________________________________________________________________ Total income 4,192,757 _____________________________________________________________________________________________________________ Expenses (Note 2): Investment management and services fee 2,989,918 Distribution fee 249,764 Transfer agency fee 616,993 Compensation of directors 23,458 Compensation of officers 6,775 Custodian fees 34,601 Postage 64,497 Registration fees 20,944 Reports to shareholders 15,367 Audit fees 11,000 Administrative 9,227 Other 12,709 _____________________________________________________________________________________________________________ Total expenses 4,055,253 _____________________________________________________________________________________________________________ Investment income -- net 137,504 _____________________________________________________________________________________________________________ Realized and unrealized gain on investments and foreign currency -- net _____________________________________________________________________________________________________________ Net realized gain on security and foreign currency transactions (Note 3) 76,941,604 Net change in unrealized appreciation or depreciation of investments 38,964,527 _____________________________________________________________________________________________________________ Net gain on investments and foreign currency 115,906,131 _____________________________________________________________________________________________________________ Net increase in net assets resulting from operations $116,043,635 _____________________________________________________________________________________________________________ See accompanying notes to financial statements.
PAGE IDS Growth Fund, Inc. ______________________________________________________________________________________________________________
Statements of Changes in Net Assets Six months ended Year ended Jan. 31, 1994 July 31, 1993 Operations and distributions _____________________________________________________________________________________________________________ (Unaudited) Investment income -- net $ 137,504 $ 44,759 Net realized gain on investments and foreign currency 76,941,604 56,347,374 Net change in unrealized appreciation or depreciation of investments 38,964,527 53,362,622 _____________________________________________________________________________________________________________ Net increase in net assets resulting from operations 116,043,635 109,754,755 _____________________________________________________________________________________________________________ Distributions to shareholders from: Net investment income (35,947) (112,283) Net realized gain on investments (94,040,848) (137,270,413) _____________________________________________________________________________________________________________ Total distributions (94,076,795) (137,382,696) _____________________________________________________________________________________________________________ Capital share transactions _____________________________________________________________________________________________________________ Proceeds from sales of 2,555,570 and 5,950,126 shares (Note 2) 47,959,626 109,290,455 Net asset value of 5,261,782 and 7,517,771 shares issued in reinvestment of distributions 92,381,180 135,011,696 Payments for redemptions of 4,274,910 and 8,124,757 shares (79,903,058) (147,380,792) _____________________________________________________________________________________________________________ Increase in net assets from capital share transactions representing net addition of 3,542,442 and 5,343,140 shares 60,437,748 96,921,359 _____________________________________________________________________________________________________________ Total increase in net assets 82,404,588 69,293,418 _____________________________________________________________________________________________________________ Net assets at beginning of period 932,555,226 863,261,808 _____________________________________________________________________________________________________________ Net assets at end of period (including undistributed net investment income of $137,751 and $36,194) $1,014,959,814 $932,555,226 _____________________________________________________________________________________________________________ See accompanying notes to financial statements.
PAGE IDS Growth Fund, Inc. Notes to Financial Statements (Unaudited as to Jan. 31, 1994) ______________________________________________________________________________ 1. Summary of Significant Accounting Policies The Fund is registered under the Investment Company Act of 1940 (as amended) as a diversified, open-end management investment company. Significant accounting policies followed by the Fund are summarized below: Valuation of Securities All securities are valued at the close of each business day. Securities traded on national securities exchanges or included in national market systems are valued at the last quoted sales price; securities for which market quotations are not readily available are valued at fair value according to methods selected in good faith by the Board of Directors. Determination of fair value involves, among other things, reference to market indexes, matrixes and data from independent brokers. Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates; those maturing in 60 days or less are valued at amortized cost. Options Transactions In order to produce incremental earnings, protect gains, and facilitate buying and selling of securities for investment purposes, the Fund may buy 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 IDS Growth Fund, Inc. Notes to Financial Statements (continued) _______________________________________________________________________ 1. Summary of Significant Accounting Policies (continued) 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. Foreign Currency Translations and Forward 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. It is not practicable to identify that portion of realized and unrealized gain (loss) arising from changes in the exchange rates from the portion arising from changes in the market value of investments. PAGE IDS Growth Fund, Inc. Notes to Financial Statements (continued) ________________________________________________________________________ 1. Summary of Significant Accounting Policies (continued) 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. PAGE IDS Growth Fund, Inc. Notes to Financial Statements (continued) _______________________________________________________________________ 1. Summary of Significant Accounting Policies (continued) 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. Other Security transactions are accounted for on the date securities are purchased or sold. Dividend income is recognized on the ex-dividend date and interest income, including level-yield amortization of premium and discount is accrued daily. ______________________________________________________________________________ 2. Expenses and Sales Charges Under terms of an agreement dated Nov. 14, 1991, the Fund pays IDS Financial Corporation (IDS) a fee for managing its investments, recordkeeping and other specified services. The fee is a percentage of the Fund's average daily net assets consisting of a group asset charge in reducing percentages from 0.46 percent to 0.32 percent annually on the combined net assets of all non-money market funds in the IDS MUTUAL FUND GROUP and an individual annual asset charge of 0.23 percent of average daily net assets. The fee is adjusted upward or downward by a performance incentive adjustment based on the Fund's average daily net assets over a rolling 12-month period as measured against the change in the Lipper Growth Fund Index. The maximum adjustment is 0.12 percent of the Fund's average daily net assets after deducting one percent from the performance difference. If the performance difference is less than one percent, the adjustment will be zero. The adjustment decreased the fee by $119,690 for the six months ended Jan. 31, 1994. The Fund also pays IDS a distribution fee at an annual rate of $6 per shareholder account and a transfer agency fee at an annual rate of $15 per shareholder account. The transfer agency fee is reduced by earnings on monies pending shareholder redemptions. PAGE IDS Growth Fund, Inc. Notes to Financial Statements (continued) ______________________________________________________________________________ 2. Expenses and Sales Charges (continued) IDS will assume and pay any expenses (except taxes and brokerage commissions) that exceed the most restrictive applicable state expense limitation. Sales charges by IDS Financial Services Inc. for distributing Fund shares were $972,854 for the six months ended Jan. 31, 1994. The Fund also pays custodian fees to IDS Bank & Trust, an affiliate of IDS. The Fund has a retirement plan for its independent directors. Upon retirement directors receive monthly payments equal to one-half of the retainer fee for as many months as they served as directors up to 120 months. There are no death benefits. The plan is not funded but the Fund recognizes the cost of payments during the time the directors serve on the Board. The retirement plan expense amounted to $4,015 for the six months ended Jan. 31, 1994. ______________________________________________________________________________ 3. Securities Transactions Cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated $276,618,281 and $279,491,460, respectively, for the six months ended Jan. 31, 1994. Realized gains and losses are determined on an identified cost basis. Brokerage commissions paid to brokers affiliated with IDS were $63,125 for the six months ended Jan. 31, 1994. PAGE IDS Growth Fund, Inc. Notes to Financial Statements (continued) ______________________________________________________________________________ 4. Lending of Portfolio Securities At Jan. 31, 1994, securities valued at $17,567,525 were on loan to brokers. For collateral, the Fund received $16,602,900 in cash and U.S. government securities valued at $1,805,209. Income from securities lending amounted to $199,180 for the six months ended Jan. 31, 1994. The risks to the Fund of securities lending are that the borrower may not provide additional collateral when required or return the securities when due. PAGE IDS Growth Fund, Inc. Notes to Financial Statements (continued) ______________________________________________________________________________ 5. Financial Highlights The table below shows certain important financial information for evaluating the Fund's results.
Six months Fiscal year ended July 31, ended ____________________________________________ Jan. 31, 1994 1993 1992 1991 1990 1989 _________________________________________________________________________________________________ Per Share Income and Capital Changes* (Unaudited) (for a share outstanding throughout the period) Net asset value, beginning of period $17.99 $18.57 $17.62 $24.05 $23.24 $17.17 _________________________________________________________________________________________________ Income from investment operations: Net investment income -- -- .08 .19 .34 .27 Net gains on securities (both realized and unrealized) 2.20 2.40 2.66 .69 2.89 5.90 __________________________________________________________________________________________________ Total from investment operations 2.20 2.40 2.74 .88 3.23 6.17 __________________________________________________________________________________________________ Less distributions: Dividends from net investment income -- -- (.18) (.33) (.27) (.10) Distributions from realized gains (1.86) (2.98) (1.61) (6.98) (2.15) -- __________________________________________________________________________________________________ Total distributions (1.86) (2.98) (1.79) (7.31) (2.42) (.10) __________________________________________________________________________________________________ Net asset value, end of period $18.33 $17.99 $18.57 $17.62 $24.05 $23.24 __________________________________________________________________________________________________ Ratios/Supplemental Data Net assets, end of period (in millions) $1,015 $933 $863 $780 $756 $732 Ratio of expenses to average daily net assets .82%** .87% .88% .87% .73% .64% Ratio of net income to average daily net assets .03%** --% .41% 1.36% 1.40% 1.39% Portfolio turnover rate (excluding short-term securities) 29% 44% 83% 75% 49% 23% _________________________________________________________________________________________________ Total Return*** 12.7%+ 13.0% 15.1% 12.4% 15.3% 36.2% _________________________________________________________________________________________________ *Rounded to the nearest cent. **Adjusted to an annual basis. ***Total return does not reflect payment of a sales charge. +For the fiscal period ended Jan. 31, 1994, the annualized total return is 26.7 percent.
PAGE IDS Growth Fund, Inc. _____________________________________________________________________________________________________________________________ Investments in Securities, Jan. 31, 1994 (Unaudited) _____________________________________________________________________________________________________________________________
Common Stocks (96.9%) (Percentages represent value of investments compared to net assets) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Automotive & Related (3.1%) Ek Chor China Motorcycle 300,000 $ 10,462,500 PACCAR 345,000 20,958,750 ____________ 31,421,250 _____________________________________________________________________________________________________________________________ Banks and Savings & Loans (3.2%) First Chicago 400,000 18,800,000 Metropolitan Financial 218,600 3,497,600 Norwest 400,000 10,550,000 ____________ 32,847,600 _____________________________________________________________________________________________________________________________ Broadcasting & Communications (15.3%) Cable & Wireless 600,000 (c,e) 14,850,000 Cisco Systems 500,000 (b) 36,250,000 Comcast Cl A 600,000 18,825,000 Grupo Televisa 400,000 (c,d) 28,400,000 Intl Family Entertainment Cl B 196,800 (b) 4,182,000 Motorola 400,000 39,400,000 Scientific-Atlanta 300,000 8,512,500 Turner Broadcasting Cl B 200,000 (e) 5,200,000 ____________ 155,619,500 _____________________________________________________________________________________________________________________________ Building Materials & Construction (0.5%) Tyco Laboratories 100,000 5,400,000 _____________________________________________________________________________________________________________________________ Business Equipment & Software (8.2%) Danka Business Systems ADR 300,000 (c) 12,375,000 Microsoft 350,000 (b) 29,793,750 Oracle Systems 1,000,000 (b) 32,125,000 Parametric Technology 100,000 (b) 3,337,500 Service Master LP 200,000 5,500,000 ____________ 83,131,250 _____________________________________________________________________________________________________________________________ Chemicals (2.0%) Great Lakes Chemical 250,000 19,718,750 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities./TABLE PAGE IDS Growth Fund, Inc. _____________________________________________________________________________________________________________________________ Investments in Securities (continued) _____________________________________________________________________________________________________________________________
Common Stocks (continued) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Consumer Related (11.1%) Duracell Intl 300,000 $ 11,925,000 General Nutrition 100,000 (b) 2,575,000 Gillette 350,000 21,262,500 Home Depot 600,000 23,400,000 Nordstrom 200,000 7,000,000 Office Depot 500,000 (b) 18,187,500 QVC Network 225,000 (b,e) 9,900,000 St. John Knits 200,000 (b) 4,650,000 Shaw Inds 100,000 2,037,500 Valence Technology 200,000 (b) 3,950,000 Wal-Mart Stores 300,000 7,950,000 ____________ 112,837,500 _____________________________________________________________________________________________________________________________ Drugs & Health Care (6.8%) Biogen 200,000 (b) 10,425,000 Boston Scientific 800,000 (b) 12,200,000 HEALTHSOUTH Rehab 500,000 (b) 14,125,000 Stryker 300,000 10,500,000 United Healthcare 250,000 21,375,000 ____________ 68,625,000 _____________________________________________________________________________________________________________________________ Electrical Equipment & Electronics (3.2%) Maxim Integrated Products 300,000 (b) 14,925,000 Sensormatic Electronics 525,000 17,390,625 ____________ 32,315,625 _____________________________________________________________________________________________________________________________ Energy (2.0%) Devon Energy 250,000 5,125,000 Enron 400,000 13,150,000 Tarragon Oil & Gas 200,000 (c) 2,448,672 ____________ 20,723,672 _____________________________________________________________________________________________________________________________ Entertainment & Leisure (3.2%) Intl Game Technology 300,000 8,850,000 Walt Disney 500,000 23,625,000 ____________ 32,475,000 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities./TABLE PAGE IDS Growth Fund, Inc. _____________________________________________________________________________________________________________________________ Investments in Securities (continued) _____________________________________________________________________________________________________________________________
Common Stocks (continued) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Financial (7.0%) BCH Financial 200,000 $ 5,200,000 First Financial Management 400,000 23,650,000 John Nuveen Cl A 400,000 10,000,000 Merrill Lynch 600,000 26,850,000 Raymond James Financial 300,000 5,250,000 ____________ 70,950,000 _____________________________________________________________________________________________________________________________ Food, Beverages & Tobacco (2.3%) Coca-Cola 500,000 20,437,500 Snapple Beverage 100,000 (b) 2,800,000 ____________ 23,237,500 _____________________________________________________________________________________________________________________________ Insurance (4.2%) St. Paul Companies 200,000 17,675,000 SunAmerica 300,000 12,262,500 Travelers 300,000 12,637,500 ____________ 42,575,000 _____________________________________________________________________________________________________________________________ Machinery (0.3%) KENETECH 100,000 (b) 2,600,000 _____________________________________________________________________________________________________________________________ Media (0.6%) News Corp ADR 100,000 (c,e) 5,775,000 _____________________________________________________________________________________________________________________________ Metals & Mining (4.1%) Birmingham Steel 300,000 8,850,000 Groupo Simec ADR 128,500 (b,c) 4,047,750 Maanshan Iron & Steel 100,000 (b,c) 4,952,418 Nucor 400,000 23,600,000 ____________ 41,450,168 _____________________________________________________________________________________________________________________________ Multi-Industrial (0.3%) Mayne Nickless 500,000 (c) 3,448,000 _____________________________________________________________________________________________________________________________ Publishing (0.3%) Thomas Nelson 125,000 3,062,500 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities./TABLE PAGE IDS Growth Fund, Inc. _____________________________________________________________________________________________________________________________ Investments in Securities (continued) _____________________________________________________________________________________________________________________________
Common Stocks (continued) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Restaurants & Lodging (2.0%) Brinker Intl 400,000 (b) $ 16,900,000 Wendy's Intl 200,000 3,425,000 ____________ 20,325,000 _____________________________________________________________________________________________________________________________ Telecommunications (6.7@%) Andrew 300,000 (b) 13,275,000 Ericsson (LM) Tel Cl B ADR 500,000 (c) 22,750,000 SynOptics Communications 400,000 (b) 11,500,000 Tellabs 450,000 (b) 20,700,000 ____________ 68,225,000 _____________________________________________________________________________________________________________________________ Transportation (3.6%) Mesa Airlines 600,000 (b) 10,800,000 Southwest Airlines 700,000 26,075,000 ____________ 36,875,000 _____________________________________________________________________________________________________________________________ Utilities (4.6%) Century Telephone 500,000 13,625,000 McCaw Cellular Communication 200,000 (b) 10,800,000 Telefonos de Mexico L ADR 300,000 (c) 22,162,500 ____________ 46,587,500 _____________________________________________________________________________________________________________________________ Miscellaneous (2.3%) Kelly Services 168,750 5,020,313 Olsten 600,000 18,750,000 ____________ 23,770,313 _____________________________________________________________________________________________________________________________ Total common stocks (Cost:$663,113,196) $ 983,996,128 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities./TABLE PAGE IDS Growth Fund, Inc. _____________________________________________________________________________________________________________________________ Investments in Securities (continued) _____________________________________________________________________________________________________________________________
Short-term Securities (4.8%) _____________________________________________________________________________________________________________________________ Annualized Amount Yield on Payable Date of at Issuer Purchase Maturity Value(a) _____________________________________________________________________________________________________________________________ U.S. Government Agency (0.2%) Federal Home Loan Mtge Corp Disc Note 02-14-94 3.04% $1,800,000 $ 1,798,030 _____________________________________________________________________________________________________________________________ Commercial Paper (4.6%) Colgate Palmolive 02-01-94 3.21 3,100,000 (f) 3,100,000 Eiger Capital 02-18-94 3.07 2,600,000 (f) 2,596,243 Fleet Funding 03-01-94 3.07 4,000,000 (f) 3,990,480 Mobil Australia Finance 02-17-94 3.09 2,300,000 (f) 2,296,852 Nestle Capital 02-24-94 3.04 1,600,000 1,596,903 Paccar Financial 02-10-94 3.08 4,000,000 3,996,930 Penney (JC) Funding 03-08-94 3.05 3,800,000 3,788,769 Pennsylvania Power & Light Energy Trust 03-17-94 3.10 4,600,000 4,582,415 04-05-94 3.11 5,000,000 4,971,378 PepsiCo 02-25-94 3.07 3,900,000 3,892,044 See accompanying notes to investments in securities./TABLE PAGE IDS Growth Fund, Inc. _____________________________________________________________________________________________________________________________ Investments in Securities (continued) _____________________________________________________________________________________________________________________________
Short-term Securities (continued) _____________________________________________________________________________________________________________________________ Annualized Amount Yield on Payable Date of at Issuer Purchase Maturity Value(a) _____________________________________________________________________________________________________________________________ Commerical Paper (cont'd) Quaker Oats 02-15-94 3.09% $1,000,000 (f) $ 998,802 Reed Publishing (USA) 03-07-94 3.08 4,400,000 (f) 4,387,242 Unilever Capital 03-07-94 3.08 6,500,000 (f) 6,481,153 _____________ 46,679,211 _____________________________________________________________________________________________________________________________ Total short-term securities (Cost: $48,479,095) $ 48,477,241 _____________________________________________________________________________________________________________________________ Total investments in securities (Cost: $711,592,291)(g) $1,032,473,369 _____________________________________________________________________________________________________________________________ Notes to Investments in Securities _____________________________________________________________________________________________________________________________ (a) Securities are valued by procedures described in Note 1 to the financial statements. (b) Presently non-income producing. (c) Foreign security values are stated in U.S. dollars. (d) Represents a security sold under Rule 144A which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Directors. (e) Security is partially or fully on loan. See Note 4 to the financial statements. (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". These securities have been determined to be liquid under the guidelines established by the Board of Directors. (g) At Jan. 31, 1994, the cost of securities for federal income tax purposes was approximately $711,592,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $329,227,000 Unrealized depreciation (8,346,000) ____________________________________________________________________________________________ Net unrealized appreciation $320,881,000 ____________________________________________________________________________________________ /TABLE PAGE IDS Growth Fund, Inc. Directors and Officers _____________________________________________________________________________ Directors of the Fund Lynne V. Cheney distinguished fellow, American Express Enterprise Institute for Public Policy Research William H. Dudley executive vice president, IDS Financial Corporation Robert F. Froehlke previously president and chief executive officer of all funds in the IDS MUTUAL FUND GROUP David R. Hubers president and chief executive officer, IDS Financial Corporation Anne P. Jones partner, Washington, D.C. law firm of Sutherland, Asbill & Brennan 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 of the board and chief executive officer, Minnesota Mining and Manufacturing Company William R. Pearce president and chief executive officer of all funds in the IDS MUTUAL FUND GROUP Edson W. Spencer former chairman and chief executive officer, Honeywell, Inc. John R. Thomas senior vice president, IDS Financial Corporation Wheelock Whitney chairman, Whitney Management Company ____________________________________________________________ Officers of the Fund William R. Pearce president and chief executive officer Leslie L. Ogg vice president, general counsel and treasurer PAGE IDS Growth Fund, Inc. IDS MUTUAL FUND GROUP ________________________________________________________________________ Specialty growth funds Funds in this group aggressively seek capital growth, primarily from international specialty common stocks. They are high risk mutual funds with a potential for high reward. IDS Precious Metals Fund, Inc. 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. 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. IDS International Fund, Inc. Invests primarily in common stocks of foreign companies that offer potential for superior growth. The Fund may invest up to 20 percent of its assets in the U.S. market. IDS Strategy, Worldwide Growth Fund Invests primarily in common stocks of companies throughout the world that offer potential for superior growth. Holdings may range from small- to large- capitalization stocks, including those of companies involved in areas of rapid economic growth. _______________________________________________________________________ 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 Discovery Fund, Inc. Invests in small- and medium-size, growth-oriented companies emphasizing technological innovation and productivity enhancement. Buys and holds larger growth-oriented stocks. IDS Growth Fund, Inc. Invests primarily in companies that have above-average potential for long-term growth as a result of new management, marketing opportunities or technological superiority. IDS Strategy, Aggressive Equity Fund Invests primarily in common stocks of companies that are selected for their potential for above-average growth. Above-average means that their growth potential is better, in the opinion of the Portfolio's investment manager, than the Standard & Poor's Corporation (S&P) 500 Stock Index. IDS New Dimensions Fund, Inc. Invests primarily in companies with significant growth potential due to superiority in technology, marketing or management. The Fund frequently changes its industry mix. PAGE IDS Growth Fund, Inc. IDS MUTUAL FUND GROUP (Continued) ______________________________________________________________________ Growth Funds (continued) IDS Progressive Fund, Inc. Invests primarily in undervalued common stocks. The Fund holds stocks for the long-term with the goal of capital growth. ______________________________________________________________________ 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. Moderate risk. IDS Managed Retirement Fund, Inc. 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. IDS Equity Plus Fund, Inc. Invests primarily in a combination of moderate growth stocks, higher-yielding equities and bonds. Seeks growth of capital and income. IDS Blue Chip Advantage Fund Invests in selected stocks from a major market index. Securities purchased are those recommended by IDS research analysts as the best from each industry represented on the index. Offers potential for long-term growth as well as dividend income. IDS Stock Fund, Inc. Invests primarily in common stocks of companies representing many sectors of the economy. Seeks current income and growth of capital. IDS Strategy, Equity Fund Invests primarily in undervalued common stocks that offer potential for growth of capital and income. IDS Utilities Income Fund, Inc. Invests primarily in the stocks of public utility companies to seek high current income and growth of income and capital with reduced volatility. 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. 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. PAGE IDS Growth Fund, Inc. IDS MUTUAL FUND GROUP (Continued) _____________________________________________________________________________ Tax-exempt income funds 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, Inc. Invests primarily in medium- and lower-quality municipal bonds and notes. Lower quality securities generally involve greater risk of principal and income. IDS State Tax-Exempt Funds (California, Massachusetts, Michigan, Minnesota, New York, Ohio) 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.) IDS Tax-Exempt Bond Fund, Inc. Invests mainly in bonds and notes of state or local government units, with at least 75 percent in the four highest-rated, lowest-risk bond categories. 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. ______________________________________________________________________ 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 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. IDS Extra Income Fund, Inc. 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. IDS Bond Fund, Inc. Invests mainly in corporate bonds, at least 50 percent in the higher-rated, lower-risk bond categories, or the equivalent, and in government bonds. IDS Strategy, Income Fund Invests primarily in corporate and government bonds to seek high current income while conserving capital. Also may seek capital appreciation when consistent with its primary goals. PAGE IDS Growth Fund, Inc. IDS MUTUAL FUND GROUP (Continued) _____________________________________________________________________________ Income funds (continued) IDS Selective Fund, Inc. 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. IDS Federal Income Fund, Inc. 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. IDS Strategy, Short-Term Income Fund Invests primarily in short-term and intermediate-term bonds and notes to seek a high level of current income. _____________________________________________________________________ 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. 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. IDS Tax-Free Money Fund, Inc. Invests primarily in short-term bonds and notes issued by state and local governments to seek high current income exempt from federal income taxes. _____________________________________________________________________ For more complete information about any of these funds, including charges and expenses, you can obtain a prospectus by contacting your IDS personal financial planner or writing to IDS Shareholder Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it carefully before you invest or send money. This semiannual report is approved for use only if preceded or accompanied by a prospectus for the Fund. PAGE 1994 SEMIANNUAL REPORT IDS Growth Fund, Inc. ____________________________________________________________________ IDS MUTUAL FUND GROUP IDS Tower 10 Minneapolis, Minnesota 55440-0010 -----END PRIVACY-ENHANCED MESSAGE-----