-----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, L/32WuMOn6zLt2QGtbYE0u6I9n48ufTrgc9vM+UobBi2Ad2eLZ1r5gZMey2952Yr T58hrmBsjmPwWfNJlnjS4A== 0000820027-94-000007.txt : 19940112 ACCESSION NUMBER: 0000820027-94-000007 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931031 FILED AS OF DATE: 19940104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS GLOBAL SERIES INC CENTRAL INDEX KEY: 0000842918 STANDARD INDUSTRIAL CLASSIFICATION: 0000 STATE OF INCORPORATION: MN FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 40 SEC FILE NUMBER: 811-05696 FILM NUMBER: 94500262 BUSINESS ADDRESS: STREET 1: 80 SOUTH 8TH STREET CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6123722772 FORMER COMPANY: FORMER CONFORMED NAME: IDS GLOBAL BOND FUND INC DATE OF NAME CHANGE: 19901011 N-30D 1 IDS GLOBAL SERIES, INC. PAGE 1 FINANCIAL PLANNING IDS Global Growth Fund 1993 annual report (prospectus enclosed) (Icon of) world The goal of IDS Global Growth Fund, a part of IDS Global Series, Inc., is long-term growth of capital. The fund invests primarily in common stocks and securities convertible into common stocks of companies throughout the world. IDS An American Express company AMERICAN EXPRESS Distributed by IDS Financial Services Inc. PAGE 2 (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 offers investors the potential to prosper along with them. PAGE 3 Contents (Icon of) One book inside of another and their both being opened together. The purpose of this annual report is to tell investors how the fund performed. The prospectus which is bound into the middle of this annual report, describes the fund in detail. 1993 annual report From the president 4 From the portfolio manager 4 Ten largest holdings 6 Long-term performance 7 Making the most of your fund 8 Independent auditors' report 9 Financial statements 10 Notes to financial statements 13 Investments in securities 20 IDS mutual funds 24 Federal income tax information 27 1993 prospectus The fund in brief Goal 3p Types of fund investments 3p Manager and distributor 3p Portfolio manager 3p Sales charge and fund expenses Sales charge 4p Operating expenses 4p Performance Financial highlights 5p Total returns 6p Key terms 7p How to buy, exchange or sell shares How to buy shares 8p How to exchange shares 10p How to sell shares 10p Reductions of the sales charge 14p Waivers of the sales charge 16p Special shareholder services Services 17p Quick telephone reference 17p Distributions and taxes Dividend and capital gain distributions 18p Reinvestments 19p Taxes 20p PAGE 4 Investment policies Facts about investments and their risks 23p Valuing assets 26p How the fund is organized Shares 27p Voting rights 27p Shareholder meetings 27p Directors and officers 27p Investment manager and transfer agent 29p Distributor 30p About IDS General information 31p PAGE 5 To our shareholders (Photo of) William R. Pearce, President of the fund (Photo of) Edward F. Korff, Portfolio manager From the president As you read this report, you'll find it very different from those you have received from us in the past. We've made substantial changes in the design and organization to make the information easier to find and understand. The annual report and prospectus are combined into a single document, and each provides information important to you. The annual report gives you the fund's performance information and a snapshot of its investments. A good place to begin is with the portfolio manager's letter, which describes the events and investment strategies that most influenced the fund's performance during the year. The prospectus includes essential data such as the fund's investment policies and service information. In redesigning our reports, we asked IDS financial planners and some of you for suggestions and recommendations. We believe that you'll find the results of our work worthwhile. William R. Pearce From the portfolio manager Attractive investment opportunities and a huge influx of money into international stock markets combined to make the past 12 months a very positive period for U.S. investors in foreign securities. What may be surprising is that many of the world's stock markets performed well while confronted with hurdles that included a generally weak global economy, turmoil in the foreign exchange markets and political change. But it should be remembered that stock markets tend to focus on the future more than the present, and the prospect of economic recovery and better corporate profits in 1994 and 1995 began pushing foreign markets higher last winter. Advantage, Asia Japan got off to an extremely fast start, then tailed off in subsequent months. Hong Kong and Southeast Asia (Singapore, Malaysia, Thailand) were especially strong overall, while selected stocks in other countries such as Germany (where we kept the highest percentage of our assets), Mexico and France also made substantial contributions to our portfolio's progress. PAGE 6 The poorest performance came from our relatively small position in U.S. stocks. Currency fluctuations, always a consideration for investors in foreign securities, played a part in the fund's performance, contributing modestly to the gain. (When the U.S. dollar weakens in value against another currency, investors in this fund benefit from the currency exchange rate. A stronger dollar, however, has a negative effect.) As we have since the fund's inception, we concentrated on stocks of companies that are involved in one of three business segments - infrastructure creation (including essentials such as roads, bridges and sewage systems), environmental clean-up and finance. In virtually all cases, the stocks we are investing in are of rapidly growing companies that, we believe, have the potential to perform well regardless of the economic climates of their home countries. Our trading activity was modest during the period, but we did add more stocks in Singapore, Malaysia, Japan and South America. Story still unfolding What appears to be happening in many foreign markets is what happened in the United States a few years ago; economies have slowed down, leading to lower interest rates - which often serves as a spark for stocks. In some countries, the fire has been further fueled by reductions in corporate and personal taxes and, in the case of Southeast Asia, robust economic growth. In South America, political reform is becoming a positive factor. Given their recent strong performance, it would be normal for foreign stocks to back-track a bit at some point. More important, though, the longer-term outlook continues to encourage us. The world is changing rapidly, and with that, we believe, comes opportunity for investment growth. Edward F. Korff 12-month performance (All figures per share) Net asset value (NAV) Oct. 31, 1993 $ 6.30 Oct. 31, 1992 $ 4.92 Increase $ 1.38 Distributions Nov. 1, 1992 - Oct. 31, 1993 From income $ 0.04 From capital gains $ 0.03 Total distributions $ 0.07 Total return* +29.9% *If you purchased shares in the fund during this period, your return also would have been affected by the sales charge, as described in the prospectus. PAGE 7 Your fund's ten largest holdings (pie chart representing) The ten holdings listed here make up 17.76% of the fund's net assets.
____________________________________________________________________________________________________________ Percent Value (of fund's net assets) (as of Oct. 31 1993) ____________________________________________________________________________________________________________ Pfleiderer (Germany) 2.07% $5,055,163 A producer of foundation products for the European high-speed train network and specialty telecommunication masts and poles. IHC Caland (Netherlands) 1.91 4,659,075 A holding company involved in international marine technology-oriented businesses. Principal products include floating crude oil loading, storage and production systems and specialized dredging equipment. Hornbach (Germany) 1.85 4,509,392 The most rapidly growing "do-it-yourself" retailer in Germany. CNIM (France) 1.77 4,322,422 A leading provider of co-generation facilities. Castorama Dubois (France) 1.74 4,255,244 A fast growing "do-it-yourself" retailer in France (currently expanding into Italy) Arab Malaysian Bank (Singapore/Malaysia) 1.73 4,224,000 A leading commercial/merchant bank. Weru (Germany) 1.72 4,190,275 A manufacturer of PVC (polyvinyl chloride) window systems and entrance doors for use in home and commercial building construction. CHA Holdings (Germany) 1.67 4,070,970 A leading producer of residential construction components. Sovac (France) 1.65 4,033,170 A provider of financing services, such as property loans, credit, auto and life insurance, to individuals. IDIA (France) 1.65 4,014,564 A specialized lender to, and shareholder of, many, small food-related companies.
PAGE 8 Your fund's long-term performance How your $10,000 has grown in IDS Global Growth Fund $12,451 Global Growth Fund $10,000 Lipper International Fund Index $9,500 EAFE Index 6/1/90 90 91 92 93 Assumes: Holding period from 6/01/90 to 10/31/93. Returns do not reflect taxes payable on distributions. Also see "Performance" in the fund's current prospectus. Reinvestment of all income and capital gain distributions for the fund, with a value of $476. The Morgan Stanley Capital International EAFE Index (EAFE Index), compiled from a composite of securities markets of Europe, Australia and the Far East, is widely recognized by investors in foreign markets as the measurement index for portfolios of non- North American securities. Lipper International Fund Index, published by Lipper Analytical Services, Inc., includes 10 funds that are generally similar to the fund, although some funds in the index may have somewhat different investment policies or objectives. If you invested $10,000 in Global Growth Fund and held the fund until Oct. 31, 1993, reinvesting all dividends, your investment would have grown to $12,451. On the chart above you can see how the fund's total return compared to two widely cited performance indexes, the EAFE and the Lipper International Fund Index. In comparing Global Growth Fund to the two indexes, you should take into account the fact that the fund's performance reflects the maximum sales charge of 5%, while such charges are not reflected in the performance of the indexes. If you were actually to buy either individual stocks or growth mutual fund, any sales charges that you pay would reduce your total return as well. Average annual total return (as of Oct. 31, 1993) 1 year Since inception* +23.45% +6.62% *Period from May 29, 1990 to Oct. 31, 1993. Your investment and return value fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. Figures reflect the effect of the 5% sales charge. Past performance is no guarantee of future results. PAGE 9 Making the most of your fund Build your assets systematically To keep your assets growing steadily, one of the best ways to invest in the fund is by dollar-cost averaging -- a time-tested strategy that can make market fluctuations work for you. To dollar-cost average, simply invest a fixed amount of money regularly. You'll automatically buy more shares when the fund's share price is low, fewer shares when it is high. This does not ensure a profit or avoid a loss if the market declines. But, if you can continue to invest regularly through changing market conditions, it can be an effective way to accumulate shares to meet your long-term goals. How dollar-cost averaging works Month Amount Per-share Number of shares purchased invested market price Jan $100 $20 5.00 Feb 100 16 6.25 Mar 100 9 11.11 Apr 100 5 20.00 May 100 7 14.29 June 100 10 10.00 July 100 15 6.67 Aug 100 20 5.00 Sept 100 17 5.88 Oct 100 12 8.33 (footnotes to table) By investing an equal number of dollars each month... (arrow in table pointing to April) you automatically buy more shares when the per share market price is low (arrow in table pointing to August) and fewer shares when the per share market price is high. You have paid an average price of only $10.81 per share over the 10 months, while the average market price actually was $13.10. Three ways to benefit from a mutual fund: o your shares increase in value when the fund's investments do well o you receive capital gains when the gains on investments sold by the fund exceed losses o you receive income when the fund's stock dividends, interest and short-term gains exceed its expenses. All three make up your total return. And you potentially can increase your investment if, like most investors, you reinvest your dividends and capital gain distributions to buy additional shares of the fund or another fund. PAGE 10 Independent auditors' report ___________________________________________________________________ The board of directors and shareholders IDS Global Series, Inc.: We have audited the accompanying statement of assets and liabilities, including the schedule of investments in securities, of IDS Global Growth Fund (a series of IDS Global Series, Inc.) as of October 31, 1993, and the related statement of operations for the year then ended and the statements of changes in net assets for each of the years in the two-year period ended October 31, 1993, and the financial highlights for each of the years in the three-year period ended October 31, 1993, and for the period from May 29, 1990 (commencement of operations), to October 31, 1990. These financial statements and the financial highlights are the responsibility of fund management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Investment securities held in custody are confirmed to us by the custodian. As to securities purchased and sold but not received or delivered, and securities on loan, we request confirmations from brokers, and where replies are not received, we carry out other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of IDS Global Growth Fund at October 31, 1993, and the results of its operations for the year then ended and the changes in its net assets for each of the years in the two-year period ended October 31, 1993, and the financial highlights for the periods stated in the first paragraph above, in conformity with generally accepted accounting principles. KPMG Peat Marwick Minneapolis, Minnesota December 3, 1993 PAGE 11
Financial statements Statement of assets and liabilities IDS Global Growth Fund Oct. 31, 1993 Assets _____________________________________________________________________________________________________________ Investments in securities, at value (Note 1): Investments in securities of unaffiliated issuers (identified cost $221,472,915) $248,541,245 Investments in securities of affiliated issuer (identified cost $2,232,666) 2,417,025 _____________________________________________________________________________________________________________ Total investments in securities (identified cost $223,705,581) 250,958,270 Cash in bank on demand deposit 2,396,364 Receivable for investment securities sold 5,590,859 Receivable for forward foreign currency contracts held, at value (Notes 1 and 4) 8,742,193 Dividends and accrued interest receivable 480,542 Organizational costs (Note 1) 8,783 _____________________________________________________________________________________________________________ Total assets 268,177,011 _____________________________________________________________________________________________________________ Liabilities _____________________________________________________________________________________________________________ Payable for investment securities purchased 6,091,663 Payable for forward foreign currency contracts held, at value (Notes 1 and 4) 8,752,876 Payable upon return of securities loaned (Note 6) 9,026,000 Payable to investment manager for organizational costs (Note 1) 8,801 Accrued investment management and services fee 155,428 Accrued distribution fee 17,954 Accrued transfer agency fee 44,885 Other accrued expenses 85,440 _____________________________________________________________________________________________________________ Total liabilities 24,183,047 _____________________________________________________________________________________________________________ Net assets applicable to outstanding capital stock $243,993,964 _____________________________________________________________________________________________________________ Represented by _____________________________________________________________________________________________________________ Capital stock -- $.01 par value; outstanding 38,705,938 shares (Note 1) $ 387,059 Additional paid-in capital 211,365,471 Undistributed net investment income (Note 1) 1,092,150 Accumulated net realized gain on investments 3,907,278 Unrealized appreciation of investments (Note 4) 27,242,006 _____________________________________________________________________________________________________________ Total -- representing net assets applicable to outstanding capital stock $243,993,964 _____________________________________________________________________________________________________________ Net asset value per share of outstanding capital stock $ 6.30 _____________________________________________________________________________________________________________ See accompanying notes to financial statements.
PAGE 12
Statement of operations IDS Global Growth Fund Year ended Oct. 31, 1993 Investment income _____________________________________________________________________________________________________________ Income: Dividends (net of foreign taxes withheld of $139,989) $ 1,866,616 Interest (net of foreign taxes withheld of $20,666) 989,253 _____________________________________________________________________________________________________________ Total income 2,855,869 _____________________________________________________________________________________________________________ Expenses (Note 2): Investment management and services fee 1,063,723 Distribution fee 143,216 Transfer agency fee 357,231 Compensation of directors 8,955 Compensation of officers 1,504 Custodian fees 91,235 Postage 64,001 Registration fees 80,355 Reports to shareholders 20,940 Audit fees 17,500 Administrative 3,300 Other 15,365 _____________________________________________________________________________________________________________ Total expenses 1,867,325 _____________________________________________________________________________________________________________ Investment income -- net 988,544 _____________________________________________________________________________________________________________ Realized and unrealized gain on investments and foreign currency -- net _____________________________________________________________________________________________________________ Net realized gain on security and foreign currency transactions (including loss of $83,490 from foreign currency translations)(Note 3) 3,804,884 Net realized gain on closed currency option contracts written (Note 5) 162,453 _____________________________________________________________________________________________________________ Net realized gain on investments and foreign currency 3,967,337 Net change in unrealized appreciation or depreciation of investments 29,879,290 _____________________________________________________________________________________________________________ Net gain on investments and foreign currency 33,846,627 _____________________________________________________________________________________________________________ Net increase in net assets resulting from operations $34,835,171 _____________________________________________________________________________________________________________ See accompanying notes to financial statements.
PAGE 13
Financial statements Statements of changes in net assets IDS Global Growth Fund Year ended Oct. 31, Operations and distributions 1993 1992 _____________________________________________________________________________________________________________ Investment income -- net $ 988,544 $ 612,496 Net realized gain on investments and foreign currency 3,967,337 636,052 Net change in unrealized appreciation or depreciation of investments 29,879,290 (3,690,728) _____________________________________________________________________________________________________________ Net increase (decrease) in net assets resulting from operations 34,835,171 (2,442,180) _____________________________________________________________________________________________________________ Distributions to shareholders from: Net investment income (494,216) (273,906) Net realized gain on investments (512,166) -- Excess distribution of realized gain (Note 1) (59,927) (4,393) _____________________________________________________________________________________________________________ Total distributions (1,066,309) (278,299) _____________________________________________________________________________________________________________ Capital share transactions _____________________________________________________________________________________________________________ Proceeds from sales of 27,423,494 and 7,996,155 shares (Note 2) 156,463,473 41,684,918 Net asset value of 215,463 and 54,164 shares issued in reinvestment of distributions 1,060,945 275,607 Payments for redemptions of 2,934,518 and 1,652,258 shares (16,190,471) (8,556,990) _____________________________________________________________________________________________________________ Increase in net assets from capital share transactions representing net addition of 24,704,439 and 6,398,061 shares 141,333,947 33,403,535 _____________________________________________________________________________________________________________ Total increase in net assets 175,102,809 30,683,056 _____________________________________________________________________________________________________________ Net assets at beginning of year 68,891,155 38,208,099 _____________________________________________________________________________________________________________ Net assets at end of year (including undistributed net investment income of $1,092,150 and $591,872) $243,993,964 $68,891,155 _____________________________________________________________________________________________________________ See accompanying notes to financial statements.
PAGE 14 Notes to financial statements IDS Global Growth Fund ___________________________________________________________________ 1. Summary of significant accounting policies IDS Global Growth Fund is a series of IDS Global Series, Inc. and is registered under the Investment Company Act of 1940 (as amended) as a diversified, open-end management investment company. IDS Global Series, Inc. has 10 billion authorized shares of capital stock which can be freely allocated among the separate series as designated by the board of directors. Significant accounting policies followed by the fund are summarized below: Valuation of securities All securities are valued at the close of each business day. Securities traded on national securities exchanges or included in national market systems are valued at the last quoted sales price; securities for which market quotations are not readily available are valued at fair value according to methods selected in good faith by the board of directors. Determination of fair value involves, among other things, reference to market indexes, matrixes and data from independent brokers. Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates; those maturing in 60 days or less are valued at amortized cost. Options transactions In order to produce incremental earnings, protect gains, and facilitate buying and selling of securities for investment purposes, the fund may buy 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. The fund also may write over-the-counter options where the completion of the obligation is dependent upon the credit standing of the other party. Option contracts are valued daily at the closing prices on their primary exchanges and unrealized appreciation or depreciation is recorded. The fund will realize a gain or loss upon expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option or the cost of a security for a purchased put or call option is adjusted by the amount of premium received or paid. PAGE 15 Notes to financial statements IDS Global Growth Fund ___________________________________________________________________ 1. Summary of significant accounting policies (continued) 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. The fund may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuation. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. The fund is subject to the credit risk that the other party will not complete the obligations of the contract. Federal taxes Since the fund's policy is to comply with all sections of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders, no provision for income or excise taxes is required. Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of the deferral of losses on certain futures contracts, the recognition of certain foreign currency gains (losses) as ordinary income (loss) for tax purposes, and losses deferred due to "wash sale" transactions. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. The effect on dividend distributions of certain book-to-tax differences is presented as "excess distributions" in the statement of changes in net assets. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the fund. On the statement of assets and liabilities, as a result of permanent book-to-tax differences, undistributed net investment income has been increased by $5,950 resulting in a net reclassification adjustment to decrease paid-in-capital by $5,950. PAGE 16 Notes to financial statements IDS Global Growth Fund ___________________________________________________________________ 1. Summary of significant accounting policies (continued) Dividends to shareholders An annual dividend declared and paid by the end of the calendar year from net investment income is reinvested in additional shares of the fund at net asset value or payable in cash. Capital gains, when available, are distributed along with the income dividend. Other Security transactions are accounted for on the date securities are purchased or sold. Dividend income is recognized on the ex-dividend date or upon receipt of ex-dividend notification in the case of certain foreign securities. Interest income, including level-yield amortization of premium and discount is accrued daily. Organization costs are being amortized over 60 months on a straight-line basis. ___________________________________________________________________ 2. Expenses and sales charges Under terms of an agreement dated Nov. 14, 1991, the fund pays IDS Financial Corporation (IDS) a fee for managing its investments, recordkeeping and other specified services. The fee is a percentage of the fund's average daily net assets consisting of a group asset charge in reducing percentages from 0.46% to 0.32% annually on the combined net assets of all non-money market funds in the IDS MUTUAL FUND GROUP and an individual annual asset charge of 0.46% of average daily net assets. The fund also pays IDS a distribution fee at an annual rate of $6 per shareholder account and a transfer agency fee at an annual rate of $15 per shareholder account. The transfer agency fee is reduced by earnings on monies pending shareholder redemptions. IDS will assume and pay any expenses (except taxes and brokerage commissions) that exceed the most restrictive applicable state expense limitation. Sales charges by IDS Financial Services Inc. for distributing fund shares were $3,003,112 for the year ended Oct. 31, 1993. 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 $2,314 for the year ended Oct. 31, 1993. PAGE 17 Notes to financial statements IDS Global Growth Fund ___________________________________________________________________ 3. Securities transactions Cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated $139,983,634 and $29,193,966, respectively, for the year ended Oct. 31, 1993. Realized gains and losses are determined on an identified cost basis. Brokerage commissions paid to brokers affiliated with IDS were $87,879 for the year ended Oct. 31, 1993. PAGE 18 Notes to financial statements IDS Global Growth Fund ___________________________________________________________________ 4. Forward foreign currency contracts At Oct. 31, 1993, the fund had entered into 17 forward foreign currency exchange contracts that obligate the fund to deliver currencies at specified future dates. The unrealized depreciation of $10,683 on these contracts is included in the accompanying financial statements. The terms of the open contracts are as follows:
U.S. Dollar value U.S. Dollar value Currency to be as of Currency to be as of Exchange date delivered Oct. 31, 1993 received Oct. 31, 1993 ____________________________________________________________________________________________________ Nov. 1, 1993 360,571 $ 360,571 2,640,570 $ 360,534 U.S. Dollar Norwegian Krona Nov. 2, 1993 609,998 609,998 1,560,071 610,237 U.S. Dollar Malaysian Dollar Nov. 3, 1993 1,107,684 1,107,684 1,859,857 1,109,369 U.S. Dollar Deutsche Mark Nov. 3, 1993 315,370 315,370 595,481 316,173 U.S. Dollar Dutch Florin Nov. 3, 1993 1,652,047 985,414 981,973 981,973 Deutsche Mark U.S. Dollar Nov. 3, 1993 668,183 398,558 397,167 397,167 Deutsche Mark U.S. Dollar Nov. 4, 1993 1,232,112 734,931 729,784 729,784 Deutsche Mark U.S. Dollar Nov. 4, 1993 1,494,902 891,680 885,435 885,435 Deutsche Mark U.S. Dollar Nov. 5, 1993 624,226 624,226 1,180,193 626,629 U.S. Dollar Dutch Florin Nov. 5, 1993 661,197 661,197 1,691,144 661,507 U.S. Dollar Malaysian Dollar Nov. 8, 1993 8,146,782 690,845 690,054 690,054 Austrian Schilling U.S. Dollar Nov. 8, 1993 916,513 77,720 77,389 77,389 Austrian Schilling U.S. Dollar Nov. 30, 1993 81,098 81,098 479,935 81,674 U.S. Dollar French Franc Nov. 30, 1993 517,847 517,847 3,039,090 517,182 U.S. Dollar French Franc Nov. 30, 1993 20,321 20,321 119,357 20,312 U.S. Dollar French Franc Nov. 30, 1993 245,320 245,320 1,444,320 245,789 U.S. Dollar French Franc Nov. 30, 1993 430,096 430,096 2,532,575 430,985 U.S. Dollar ___________ French Franc ___________ $8,752,876 $8,742,193
PAGE 19 Notes to financial statements IDS Global Growth Fund ___________________________________________________________________ 5. Option contracts written The number of contracts and premium amounts associated with option contracts written is as follows:
Year ended Oct. 31, 1993 ___________________________________________________ Calls Puts ____________________________________________________ Contracts Premium Contracts Premium _________________________________________________________________________ Balance Oct. 31, 1992 -- $ -- -- $ -- Opened 75 207,913 40 44,970 Closed (75) (207,913) (40) (44,970) _________________________________________________________________________ Balance Oct. 31, 1993 -- $ -- -- $ -- _________________________________________________________________________
___________________________________________________________________ 6. Lending of portfolio securities At Oct. 31, 1993, securities valued at $8,206,575 were on loan to brokers. For collateral, the fund received $9,026,000 in cash. Income from securities lending amounted to $867 for the year ended Oct. 31, 1993. 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. ___________________________________________________________________ 7. Financial highlights "Financial highlights" showing per share data and selected information is presented on page 5 of the prospectus. PAGE 20
Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of unaffiliated issuers _____________________________________________________________________________________________________________________________ Common stocks (77.5%) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Argentina (4.5%) Banks and savings & loan (1.3%) Banco de Galicia ADR 100,000 $ 3,225,000 _____________________________________________________________________________________________________________________________ Beverages & tobacco (1.5%) Baesa ADR 100,000 3,687,500 _____________________________________________________________________________________________________________________________ Building materials (1.7%) IRSA 150,000 (b,c) 3,975,000 _____________________________________________________________________________________________________________________________ Australia (1.6%) Retail Woolworth 200,000 (b) 3,900,000 _____________________________________________________________________________________________________________________________ Austria (0.6%) Building materials Universale-BAU 16,100 1,395,307 _____________________________________________________________________________________________________________________________ Canada (2.5%) Energy (1.6%) Sceptre 350,000 3,972,608 _____________________________________________________________________________________________________________________________ Utilities-gas (0.9%) Archer Resource 150,000 (c) 2,184,934 _____________________________________________________________________________________________________________________________ Chile (1.5%) Industrial equipment Madeco ADR 175,000 (c) 3,631,250 _____________________________________________________________________________________________________________________________ France (9.6%) Banks and savings & loan (2.7%) Credit Local de France 33,000 (b) 2,579,907 Sovac 15,000 4,033,170 ____________ Total 6,613,077 _____________________________________________________________________________________________________________________________ Computers & office equipment (0.4%) Sligos 11,000 949,069 _____________________________________________________________________________________________________________________________ Food (1.7%) IDIA 98,500 4,014,564 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities.
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Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of unaffiliated issuers _____________________________________________________________________________________________________________________________ Common stocks (cont'd) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ France (cont'd) Industrial equipment & services (1.8%) CNIM 19,026 $ 4,322,422 _____________________________________________________________________________________________________________________________ Retail (1.7%) Castorama Dubois 33,429 4,255,244 _____________________________________________________________________________________________________________________________ Utilities-gas (1.3%) Primagaz 20,000 3,189,100 _____________________________________________________________________________________________________________________________ Germany (9.4%) Building materials & construction (6.8%) CHA Holdings 15,000 4,070,970 Friedrich Grone 15,000 3,292,560 Pfleiderer 12,500 5,055,163 Weru 5,000 4,190,275 ____________ Total 16,608,968 _____________________________________________________________________________________________________________________________ Computers & office equipment (1.1%) Computer 2000 5,108 2,623,310 _____________________________________________________________________________________________________________________________ Retail (1.5%) Douglas Holdings 10,000 3,638,530 _____________________________________________________________________________________________________________________________ Hong Kong (6.4%) Automotive & related (0.5%) Innovative Intl Holdings 3,000,000 1,221,000 _____________________________________________________________________________________________________________________________ Building materials (0.8%) Kumagai Gumi 1,500,000 2,056,500 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (3.4%) Hopewell Holdings 2,250,000 2,254,500 Hutchison Whampoa 1,000,000 3,765,000 Shun Tak Enterprise 2,000,000 2,380,000 ____________ Total 8,399,500 _____________________________________________________________________________________________________________________________ Restaurant & lodging (0.7%) Cafe de Coral 2,200,000 1,592,800 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities.
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Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of unaffiliated issuers ______________________________________________________________________________________________________________________________ Common stocks (cont'd) ______________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Hong Kong (cont'd) Utilities-telephone (1.0%) Hong Kong Telecom 1,096,200 $ 2,367,792 _____________________________________________________________________________________________________________________________ Italy (2.4%) Building materials (0.2%) Cogefar Impresit Constr General 295,000 (c) 475,540 _____________________________________________________________________________________________________________________________ Furniture & appliances (1.5%) Natuzzi 150,000 (c) 3,637,500 _____________________________________________________________________________________________________________________________ Industrial equipment (0.7%) Sasib 400,000 1,796,000 _____________________________________________________________________________________________________________________________ Japan (6.2%) Electronics (2.9%) Chudenko 72,450 2,607,765 Japan Radio 150,000 2,561,100 Nippon Signal 150,000 (d) 2,048,850 ____________ Total 7,217,715 _____________________________________________________________________________________________________________________________ Leisure time & entertainment (0.9%) Heiwa 75,000 (d) 2,152,725 _____________________________________________________________________________________________________________________________ Retail (2.4%) Canon Sales 100,000 (d) 2,768,800 York Benimaru 75,000 3,087,150 ____________ Total 5,855,950 _____________________________________________________________________________________________________________________________ Mexico (3.7%) Banks and savings & loan (1.5%) Banacci Cl C 600,000 3 ,684,600 _____________________________________________________________________________________________________________________________ Beverages & tobacco (1.0%) Femsa Cl B 500,000 2,558,500 _____________________________________________________________________________________________________________________________ Metals (1.2%) Groupo Simec ADR 160,000 (c) 2,900,000 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities.
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Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of unaffiliated issuers ______________________________________________________________________________________________________________________________ Common stocks (cont'd) ______________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Netherlands (3.1%) Building materials (1.9%) IHC Caland 225,000 $ 4,659,075 _____________________________________________________________________________________________________________________________ Electronics (0.9%) Getronics 98,239 2,190,730 _____________________________________________________________________________________________________________________________ Industrial services (0.3%) Boskalis 25,000 621,500 _____________________________________________________________________________________________________________________________ Norway (0.6%) Energy Saga Petro Cl B 125,000 1,467,750 _____________________________________________________________________________________________________________________________ Portugual (1.2%) Financial services Banco Commercial Portugues ADR 218,999 (d) 3,011,236 _____________________________________________________________________________________________________________________________ Singapore/Malaysia (9.0%) Banks and savings & loan (5.5%) Arab Malaysian Bank 600,000 4,224,000 Commerce Asset 1,000,000 3,109,000 Development Bank of Singapore 375,000 3,806,625 United Overseas Bank 281,250 2,234,250 ____________ Total 13,373,875 _____________________________________________________________________________________________________________________________ Electronics (1.3%) Technology Resource Cl A 1,000,000 (c) 3,168,000 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities.
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Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of unaffiliated issuers _____________________________________________________________________________________________________________________________ Common stocks (cont'd) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Singapore/Malaysia (cont'd) Leisure time & entertainment (0.9%) Resorts World 400,000 $ 2,190,400 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (1.3%) Keppel 550,000 3,206,725 _____________________________________________________________________________________________________________________________ Spain (2.2%) Building materials (0.5%) Cubiertas 16,450 1,066,256 _____________________________________________________________________________________________________________________________ Food (0.8%) Pryca Centros Comer 200,000 2,135,800 _____________________________________________________________________________________________________________________________ Industrial transportation (0.9%) Aumar Autopistas 200,000 2,217,600 _____________________________________________________________________________________________________________________________ Switzerland (1.2%) Insurance Schweiz-Ruckversicherungs 6,000 3,021,258 _____________________________________________________________________________________________________________________________ United Kingdom (5.8%) Banks and savings & loans (1.0%) Abby Natl 400,000 2,500,400 _____________________________________________________________________________________________________________________________ Electronics (1.0%) Electrocomponents 350,000 2,297,050 _____________________________________________________________________________________________________________________________ Health care (0.9%) Medeva 1,300,000 2,224,300 _____________________________________________________________________________________________________________________________ Industrial transportation (0.5%) Tiphook ADR 750,000 1,227,750 _____________________________________________________________________________________________________________________________ Media (2.4%) Blenheim Group 600,000 3,232,800 Wace Group 1,000,000 2,634,000 ____________ Total 5,866,800 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities.
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Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of unaffiliated issuers _____________________________________________________________________________________________________________________________ Common stocks (cont'd) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ United States (6.0%) Computers & office equipment (0.6%) Iomega 400,000 (c) $ 1,500,000 _____________________________________________________________________________________________________________________________ Health care (0.2%) Meadowbrook Rehab Group 150,000 (c) 412,500 _____________________________________________________________________________________________________________________________ Industrial equipment & services (1.8%) Calgon Carbon 125,000 1,265,625 Sanifill 175,000 (c) 3,106,250 ____________ Total 4,371,875 _____________________________________________________________________________________________________________________________ Insurance (1.2%) Midocean 100,000 (c) 2,900,000 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities.
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Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of unaffiliated issuers _____________________________________________________________________________________________________________________________ Common stocks (cont'd) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ United States (cont'd) Restaurants & Lodging (1.0%) ShoLodge 100,000 $ 2,325,000 _____________________________________________________________________________________________________________________________ Transportation (1.2%) Fritz 100,000 (c) 3,025,000 _____________________________________________________________________________________________________________________________ Total common stocks of unaffiliated issuers (Cost: $165,017,500) $189,082,885 _____________________________________________________________________________________________________________________________ Bond (0.8%) _____________________________________________________________________________________________________________________________ Issuer Principal Value(a) Amount _____________________________________________________________________________________________________________________________ Spain Banco Santander (Spanish Peseta) 9% Cv 1994 200,000,000 $ 1,920,000 _____________________________________________________________________________________________________________________________ Total bond (Cost: $1,506,563) $ 1,920,000 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities.
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Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of unaffiliated issuers _____________________________________________________________________________________________________________________________ Preferred stocks & other (4.3%) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Brazil (--%) South Amer Fund Warrants 50,000 $ 53,750 _____________________________________________________________________________________________________________________________ France (--%) Primagaz Warrants 1,125 25,846 _____________________________________________________________________________________________________________________________ Germany (4.2%) Hornbach 4,000 4,509,392 SAP 5,000 3,877,120 Westag & Getalit 8,000 1,908,736 ____________ 10,295,248 _____________________________________________________________________________________________________________________________ Singapore/Malaysia (0.1%) Commerce Asset Rights 266,666 (e) -- Keppel Warrants 50,000 138,556 United Overseas Warrants 24,500 80,328 ____________ 218,884 _____________________________________________________________________________________________________________________________ Total preferred stocks & other (Cost: $8,004,220) $ 10,593,728 _____________________________________________________________________________________________________________________________
Short-term securities (19.2%) _____________________________________________________________________________________________________________________________ Issuer Annualized Amount Value(a) yield on payable date of at purchase maturity _____________________________________________________________________________________________________________________________ Commercial paper (15.6%) ABB Treasury Center (USA) 11-10-93 3.11% $4,600,000 (f) $ 4,595,643 Amer General Investment 11-30-93 3.11 1,900,000 (f) 1,894,928 BBV Finance (Delaware) 12-17-93 3.11 800,000 796,693 See accompanying notes to investments in securities.
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Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of unaffiliated issuers ______________________________________________________________________________________________________________________________ Short-term securities (continued) _____________________________________________________________________________________________________________________________ Issuer Annualized Amount Value(a) yield on payable date of at purchase maturity _____________________________________________________________________________________________________________________________ Commercial Paper (cont'd) Ciesco LP 11-10-93 3.12% $1,500,000 $ 1,498,575 Commerzbank U.S. Finance 11-22-93 3.09 1,000,000 998,032 Corporate Receivables 11-16-93 3.10 800,000 798,829 G.E. Capital 12-10-93 3.10 1,100,000 1,096,129 Merrill Lynch 12-03-93 3.11 1,900,000 1,894,437 Natl Australia Funding (Delaware) 11-12-93 3.11 4,400,000 4,395,074 Natl Bank Detroit Canada 11-15-93 3.12 3,000,000 2,995,840 Penney (JC) Funding 11-09-93 3.11 1,000,000 999,139 12-01-93 3.08 1,100,000 1,096,998 Pennsylvania Power & Light Energy Trust 11-17-93 3.11 2,800,000 2,795,660 Pioneer Hi-Bred Intl 12-06-93 3.11 2,000,000 1,993,628 Pitney Bowes Credit 12-03-93 3.09 2,500,000 2,492,728 Rohm & Haas Finance 11-12-93 3.11 3,400,000 3,396,194 St. Paul Companies 11-15-93 3.11 600,000 (f) 599,173 Sandoz 11-18-93 3.09 2,000,000 1,996,749 12-15-93 3.11 1,700,000 1,693,266 ____________ Total 38,027,715 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securites.
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Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of unaffiliated issuers ______________________________________________________________________________________________________________________________ Short-term securities (continued) _____________________________________________________________________________________________________________________________ Issuer Annualized Amount Value(a) yield on payable date of at purchase maturity _____________________________________________________________________________________________________________________________ Letters of credit (3.6%) Bank of Amer- AES Barbers Point 11-30-93 3.12% $3,000,000 $ 2,991,966 First Natl Chicago- Commonwealth Fuel II 11-10-93 3.14 2,040,000 2,038,049 NationsBank North Carolina- Comdisco 12-08-93 3.11 3,900,000 3,886,902 ____________ Total 8,916,917 _____________________________________________________________________________________________________________________________ Total short-term securities (Cost: $46,944,632) $ 46,944,632 _____________________________________________________________________________________________________________________________ Total investments in securities of unaffiliated issuers (Cost: $221,472,915) $248,541,245 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities.
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Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1993 investments compared to net assets) Investments in securities of affiliated issuer (g) _____________________________________________________________________________________________________________________________ Common stock (1.0%) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ United States Chemicals GNI Group 325,000 (c) $ 2,417,025 _____________________________________________________________________________________________________________________________ Total investments in securities of affiliated issuer (Cost: $2,232,666) $ 2,417,025 _____________________________________________________________________________________________________________________________ Total investments in securities (Cost: $223,705,581)(h) $250,958,270 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities. PAGE 31 Investments in securities IDS Global Growth Fund Oct. 31, 1993 _____________________________________________________________________________________________________________________________ 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; principal amounts are denominated in the currency indicated. (b) Represents a security sold under Rule 144A which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the board of directors. (c) Presently non-income producing. (d) Security is partially or fully on loan. See Note 6 to the financial statements. (e) Presently 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 of directors. (g) Investments representing 5% or more of the outstanding voting securities of the issuer. (h) At Oct. 31, 1993, the cost of securities for federal income tax purposes was $223,705,581 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $37,630,676 Unrealized depreciation (10,377,987) ____________________________________________________________________________________________ Net unrealized appreciation $27,252,689 ____________________________________________________________________________________________
PAGE 32 IDS mutual funds Cash equivalent investments These money market funds have three main goals: conversation of capital, constant liquidity and the highest possible current income consistent with these objectives. Very limited risk. IDS Cash Management Fund Invests in such money market securities as high quality commercial paper, bankers' acceptances, certificates of deposits (CDs) and other bank securities. (icon of) piggy bank IDS Planned Investment Account Invests in money market securities to provide maximum current income consistent with liquidity and stability of principal of principal, while serving as a base for systematic exchanges into IDS fixed income and equity funds. (icon of) stair steps IDS Tax-Free Money Fund Invests primarily in short-term bonds and notes issued by state and local governments to seek high current income exempt from federal income taxes. (icon of) shield with piggy bank enclosed Income investments The funds in this group invest their assets primarily in corporate bonds or government securities to seek interest income. Secondary objective is capital growth. Risk varies by bond quality. IDS Global Bond Fund Invests primarily in debt securities of U.S. and foreign issuers to achieve high total return through income and growth of capital. (icon of) globe IDS Extra Income Fund Invests mainly in long-term, high-yielding corporate fixed-income securities in the lower rated, higher risk bond categories to provide high current income. Secondary objective is capital growth. (icon of) cornucopia PAGE 33 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 Strategy Income Fund Invests primarily in corporate and government bonds to seek high current income while conserving capital. Also may seek capital appreciation when consistent with its primary goals. (icon of) chess piece IDS Selective Fund, 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. (icon of) skyline IDS Federal Income Fund, Inc. Invests primarily in securities issued or guaranteed as to principal and interest by the U.S. government, its agencies and instrumentalities. Seeks a high level of current income and safety of principal consistent with its type of investments. (icon of) federal building IDS Strategy, Short-Term Income Fund Invests primarily in short-term and intermediate-term bonds and notes to seek a high level of current income. (icon of) chess piece Tax-exempt income investments These funds provide tax-free income by investing in municipal bonds. The income is generally free from federal income tax. Risk varies by bond quality. IDS High Yield Tax-Exempt Fund, Inc. Invests primarily in medium- and lower-quality municipal bonds and notes. (icon of) shield with basket of apples enclosed PAGE 34 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.) (icon of) shield with U.S. enclosed 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. (icon of) shield with Greek column IDS Insured Tax-Exempt Fund Invests primarily in municipal securities that are insured as to the timely payment of principal and interest. The insurance feature minimizes credit risk of the Fund but does not guarantee the market value of the Fund's shares. (icon of) shield with eagle head Growth and income investments These funds focus on securities of medium to large, well- established companies that offer long-term growth of capital and reasonable income from dividends and interest. Moderate risk. IDS International Fund, 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. (icon of) three flags IDS Strategy, Worldwide Growth Fund Invests primarily in common stocks of companies throughout the world that offer potential for superior growth. Holding may range from small- to large-capitalization stocks, including those of companies involve in areas of rapid economic growth. (icon of) chess piece 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. (icon of) bird in a nest PAGE 35 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. (icon of) three apple trees IDS Blue Chip Advantage Fund Invests in selected stocks from a major market index. Securities purchased are those recommended by IDS research analysts as the best from each industry represented on the index. Offers potential for long-term growth as well as dividend income. (icon of) ribbon IDS Stock Fund, Inc. Invests primarily in common stocks of blue chip U.S. companies representing almost every major sector of the economy. Seeks current income and growth of capital. (icon of) building with columns IDS Strategy, Equity Fund Invests primarily in undervalued common stocks that offer potential for growth of capital and income. (icon of) chess piece IDS Utilities Income Fund, Inc. Invests primarily in the stocks of public utility companies to provide high current income and growth of income and capital with reduced volatility. (icon of) electrical cord IDS Diversified Equity Income Fund Invests primarily in high-yielding common stocks to provide high current income and, secondarily to benefit from the growth potential offered by stock investments. (icon of) four puzzle pieces IDS Mutual Invests in a balance between common stocks and senior securities (preferred stocks and bonds). Seeks a balance of growth of capital and current income. (icon of) scale of justice PAGE 36 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-sized, growth-oriented companies emphasizing technological innovation and productivity enhancement. Buys and holds larger growth-oriented stocks. (icon of) ship 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. (icon of) flower IDS Strategy, Aggressive Equity Fund Invests primarily in common stocks of companies that are selected for their potential for above-average growth. Above-average means that their growth potential is better, in the opinion of the Portfolio's investment manager, than the Standard & Poor's Corporation (S&P) 500 Stock Index. (icon of) chess piece IDS New Dimensions Fund, Inc. Invests primarily in domestic 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, Inc. Invests primarily in undervalued common stocks. The Fund holds stocks for the long-term with the goal of capital growth. (icon of) shooting star IDS Global Growth Fund Invests in stocks of companies throughout the world that are positioned to meet market needs in a changing world economy. These companies offer above-average potential for long-term growth. (icon of) world Specialty growth investment This fund aggressively seeks capital growth as a hedge against inflation. PAGE 37 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. (icon of) cart of precious gems For more complete information about any of these funds, including charges and expenses, you can obtain a prospectus by contacting your IDS personal financial planner or writing to IDS Shareholder Service, P.O. Box 534, Minneapolis, MN 55440. Read it carefully before you invest or send money. PAGE 38 Federal income tax information IDS Global Growth Fund The fund is required by the Internal Revenue Code of 1986 to tell its shareholders about the tax treatment of the dividends it pays during its fiscal year. The dividends listed below were reported to you on a Form 1099-DIV, Dividends and Distributions, last January. Shareholders should consult a tax adviser on how to report distributions for state and local purposes. IDS Global Growth Fund Fiscal year ended Oct. 31, 1993 Income distribution taxable as dividend income 3.28% qualifying for deduction by corporations. Payable date Per share Dec. 30, 1992 $0.03613 Capital gain distribution taxable as long-term capital gain. Payable date Per share Dec. 30, 1992 $0.03337 Total distributions $0.06950 PAGE 39 Quick telephone reference IDS Telephone Transaction Service Redemptions and exchanges, dividend payments or reinvestments and automatic payment arrangements National/Minnesota: 800-437-3133 Mpls./St. Paul area: 671-3800 IDS Shareholder Service Fund performance, objectives and account inquiries 612-671-3733 TTY Service For the hearing impaired 800-846-4852 IDS Infoline Automated account information (TouchToneR phones only), including current fund prices and performance, account values and recent account transactions National/Minnesota: 800-272-4445 Mpls./St. Paul area: 671-1630 Your IDS financial planner: IDS Global Growth Fund IDS Tower 10 Minneapolis, MN 55440-0010 PAGE 40 STATEMENT OF DIFFERENCES Difference Description 1) The layout is different 1) Some of the layout in the throughout the annual report. annual report to shareholders is in two columns. 2) Headings. 2) The headings in the annual report and prospectus are placed in blue strip at the top of the page. 3) There are pictures, icons 3) Each picture, icon and and graphs throughout the graph is described in annual report and prospectus. parentheses. 4) Footnotes for charts and 4) The footnotes for each graphs are described at chart or graph are typed the left margin. below the description of the chart or graph. -----END PRIVACY-ENHANCED MESSAGE-----