-----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, XYSNyvtvmrBFXbPUToAV9Vc8qJlsXOW7hmqxov1t6Rp/GS67Mpf72MQZ37T/f2kn ThowIA5Pyq16IZg1Fq5GzA== 0000820027-95-000350.txt : 19950623 0000820027-95-000350.hdr.sgml : 19950623 ACCESSION NUMBER: 0000820027-95-000350 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950622 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS GLOBAL SERIES INC CENTRAL INDEX KEY: 0000842918 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MN FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05696 FILM NUMBER: 95548509 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 GLOBAL SERIES N30D APR.95 PAGE IDS Global Bond Fund 1995 semiannual report (icon of: Globe) The goal of IDS Global Bond Fund, a part of IDS Global Series, Inc., is a high total return through income and growth of capital. Distributed by American Express Financial Advisors Inc. PAGE (icon of: Globe) A bounty of bonds In today's global economy, investment opportunities don't stop at the water's edge. While bonds issued by the U.S. government and corporations once made up almost all of the bond market, today more than half of the world's debt securities are issued from outside the United States. This means expanded opportunity for investors. Global Bond Fund's aim is to take advantage of opportunities in bond markets at any time and in any place, providing investors with greater portfolio diversification. Contents From the president 3 From the portfolio manager 3 Ten largest holdings 5 Financial statements 6 Notes to financial statements 9 Investments in securities 19 Directors and officers 24 IDS mutual funds 25 PAGE To our shareholders (Picture of: WIlliam R. Pearce) William R. Pearce President of the fund (Picture of: Ray Goodner) Ray Goodner Portfolio manager From the president As I indicated in the fund's annual report, new agreements between the fund and American Express Financial Corporation were approved by shareholders in November 1994. The new agreements became effective when the fund began offering multiple classes of shares on March 20, 1995. The advantage of offering more than a single class of shares is that investors may choose how they wish to pay sales charges. These charges compensate your American Express financial advisor (formerly called your IDS planner), who is committed to providing you with outstanding services. Adding new classes of mutual fund shares does make the presentation of financial information in this report more complex. However, we will continue our effort to make the reports easier to read and understand. Meanwhile, your advisor is available to answer your questions. William R. Pearce PAGE From the portfolio manager Positive bond markets and appreciating currencies in many foreign countries combined to generate an excellent return for IDS Global Bond Fund shareholders during the first six months of the fiscal year (November 1994 through April 1995). The three-prong investment potential of this fund was never more clear than during the past period. Like any bond fund, IDS Global Bond offers investors ongoing income from the interest on the bonds it holds, as well as the possibility of capital appreciation should interest rates decline. But because of its flexibility to invest in markets around the world, this fund can also provide additional return generated by appreciating currencies in foreign markets. Currency counts The currency factor played the most important role in our recent performance. While many foreign bond markets in which we were invested enjoyed rising bond prices, it was the currency appreciation that really made the difference. The two outstanding examples were Japan and Germany - - which, next to the U.S., constituted the fund's largest exposure. In Germany, the market was up about 6.6%, but when the increase in value of the German mark versus the U.S. dollar was included, the gain approached 15% for U.S. investors. Japan proved to be even more profitable, as that market's price gain of about 9% was boosted to approximately 25% when the yen's gain against the dollar was figured in. (As investors experienced in foreign markets know, when the dollar declines against another currency, the value of an investment in that currency rises.) Why did the dollar lose so much ground against those currencies? There were, and continue to be, two main reasons: high, ongoing federal deficits in this country and trade imbalances with some countries (we import more goods than we export), especially with Japan. However, it isn't always a one-way street. During the period, the U.S. dollar appreciated against the currencies of two other major trading partners - Canada and Mexico, greatly so in the latter case. Gains at home The U.S. bond market also made a strong contribution to performance, although dollar fluctuations naturally have no effect on returns for investors based here. After being down for most of 1994 because of rising interest rates, the U.S. market finally reached a point of stability last November - a welcome relief. Then, remarkably, as fast as the market had gone down in the preceding months, it almost immediately began turning up. By the end of April, the market, led by U.S. Treasury bonds, had racked up five straight months of strong gains. We participated in this rally, too, as we kept a considerable portion of the portfolio invested in long-maturing U.S. bonds. As the period progressed, we reduced that exposure and moved more money into foreign markets, particularly Japan, to take advantage of the appreciating currencies overseas. As we look toward the second half of the fiscal year, we continue to see solid opportunities. The currency situation remains largely unfavorable for the dollar (again, a positive for the fund), though we don't expect to get a repeat of its latest decline against the mark and yen. However, currency movements can be highly unpredictable, and we must always be prepared for swings that may not work in our favor. Latin America, led by Mexico, looks promising now that the financial aid package for Mexico is in place. Here at home, the fundamentals for the bond market appear positive, thanks mainly to moderating economic growth that should lessen the likelihood of higher interest rates. We have exposure to all these markets and many more, and we expect this diversified approach to generate optimum fixed-income returns. Ray Goodner PAGE Class A 6-month performance (All figures per share) Net asset value (NAV) April 30, 1995 $ 6.03 Oct. 31, 1994 $ 5.76 Increase $ 0.27 Distributions Nov. 1, 1994 - April 30, 1995 From income $ 0.17 From capital gains $ - Total distributions $ 0.17 Total return** 7.8% Class B March 20,1995 - April 30,1995 (All figures per share) Net asset value (NAV) April 30, 1995 $ 6.03 March 20, 1995* $ 5.76 Increase $ 0.27 Distributions March 20, 1995* - April 30, 1995 From income $ 0.07 From capital gains $ - Total distributions $ 0.07 Total return** 5.9% Class Y March 20,1995 - April 30,1995 (All figures per share) Net asset value (NAV) April 30, 1995 $ 6.03 March 20, 1995* $ 5.76 Increase $ 0.27 Distributions March 20, 1995* - April 30, 1995 From income $ 0.07 From capital gains $ - Total distributions $ 0.07 Total return** 5.9% *Commencement of operations. **The prospectus discusses the effects of the sales charge on the various classes. PAGE IDS Global Bond Fund Your fund's ten largest holdings Picture of pie chart: The ten holdings listed here make up 44.79% of the fund's net assets ______________________________________________________________________ Percent Value (of fund's net assets) (as of April 30, 1995) ______________________________________________________________________ Government of Japan 9.10% $ 44,936,215 4.40% Bond 2004 U.K. Treasury 5.90 29,159,275 8% Bond 2003 Government of Canada 4.83 23,837,420 10.50% Bond 2001 Federal Republic of Germany 4.75 23,449,650 6.375% Bond 1998 Federal Republic of Germany 3.97 19,610,210 8.75% Bond 2001 Federal Republic of Germany 3.91 19,331,220 6% Bond 1997 U.K. Treasury 3.58 17,697,693 9% Bond 2000 Government of Italy 3.28 16,224,000 8.50% Bond 1999 U.S. Treasury 2.77 13,674,673 4.75% Bond 1998 U.S. Treasury 2.70 13,325,650 7.625% Bond 2022 Note: Certain foreign investment risks include: changes in currency exchange rates, adverse political or economic order, and lack of similar regulatory requirements followed by U.S. companies. PAGE Financial statements Statement of assets and liabilities IDS Global Bond Fund April 30, 1995
_____________________________________________________________________________________________________________ Assets _____________________________________________________________________________________________________________ (Unaudited) Investments in securities, at value (Note 1) (identified cost $482,202,617) $485,354,273 Receivable for investment securities sold 45,380,676 Dividends and accrued interest receivable 12,197,938 Receivable for foreign currency contracts held, at value (Notes 1 and 6) 118,652,855 U.S. government securities held as collateral (Note 4) 13,579,337 _____________________________________________________________________________________________________________ Total assets 675,165,079 _____________________________________________________________________________________________________________ Liabilities _____________________________________________________________________________________________________________ Disbursements in excess of cash on demand deposit 1,397,656 Dividends payable to shareholders 1,151,365 Payable for investment securities purchased 46,355,517 Payable upon return of securities loaned (Note 4) 13,579,337 Payable for foreign currency contracts held, at value (Notes 1 and 6) 118,552,781 Accrued investment management services fee 20,610 Accrued distribution fee and service fees 3,505 Accrued transfer agency fee 4,319 Accrued administrative services fee 1,565 Other accrued expenses 64,606 Open option contracts written, at value (premium received $143,750)(Note 5) 100,313 _____________________________________________________________________________________________________________ Total liabilities 181,231,574 _____________________________________________________________________________________________________________ Net assets applicable to outstanding capital stock $493,933,505 _____________________________________________________________________________________________________________ Represented by _____________________________________________________________________________________________________________ Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 819,249 Additional paid-in capital 488,083,141 Undistributed net investment income (Note 1) 2,955,827 Accumulated net realized loss (1,219,879) Unrealized appreciation (Note 6) 3,295,167 _____________________________________________________________________________________________________________ Total -- representing net assets applicable to outstanding capital stock $493,933,505 _____________________________________________________________________________________________________________ Net asset applicable to outstanding shares: Class A $488,358,979 Class B $ 4,218,443 Class Y $ 1,356,083 Net asset value per share of outstanding capital stock: Class A shares 81,000,067 $ 6.03 Class B shares 699,880 $ 6.03 Class Y shares 224,931 $ 6.03 _____________________________________________________________________________________________________________ See accompanying notes to financial statements. PAGE Financial statements Statement of operations IDS Global Bond Fund Six months ended April 30, 1995 _____________________________________________________________________________________________________________ Investment income _____________________________________________________________________________________________________________ (Unaudited) Income: Dividends (net of foreign taxes withheld of $25,954) $ 124,746 Interest (net of foreign taxes withheld of $54,786) 16,023,853 _____________________________________________________________________________________________________________ Total income 16,148,599 _____________________________________________________________________________________________________________ Expenses (Note 2): Investment management services fee 1,863,909 Distribution fee - Class A 113,947 Transfer agency fee 371,869 Service fee 91,804 Administration services fee 30,310 Compensation of directors 4,056 Compensation of officers 2,509 Custodian fees 112,798 Postage 37,484 Registration fees 58,980 Reports to shareholders 36,860 Audit fees 10,750 Administrative 3,336 Other 11,074 _____________________________________________________________________________________________________________ Total expenses 2,749,686 _____________________________________________________________________________________________________________ Investment income -- net 13,398,913 _____________________________________________________________________________________________________________ Realized and unrealized gain (loss) -- net _____________________________________________________________________________________________________________ Net realized gain on security and foreign currency transactions (including gain of $22,597 from foreign currency transactions) (Note 3) 826,326 Net realized loss on financial futures contracts (649,185) Net realized gain on closed or expired currency option contracts written (Note 5) 38,544 _____________________________________________________________________________________________________________ Net realized gain on investments and foreign currency 215,685 Net change in unrealized appreciation or depreciation 21,405,763 _____________________________________________________________________________________________________________ Net gain on investments and foreign currency 21,621,448 _____________________________________________________________________________________________________________ Net increase in net assets resulting from operations $35,020,361 _____________________________________________________________________________________________________________ See accompanying notes to financial statements. /TABLE PAGE
Financial statements Statements of changes in net assets IDS Global Bond Fund _____________________________________________________________________________________________________________ Operations and distributions April 30, 1995 Oct. 31, 1994 _____________________________________________________________________________________________________________ Six months ended Year ended (Unaudited) Investment income -- net $ 13,398,913 $ 22,065,406 Net realized gain (loss) on investments and foreign currency 215,685 (2,477,889) Net change in unrealized appreciation or depreciation 21,405,763 (27,808,371) _____________________________________________________________________________________________________________ Net increase (decrease) in net assets resulting from operations 35,020,361 (8,220,854) _____________________________________________________________________________________________________________ Distributions to shareholders from: Net investment income Class A (11,571,003) (19,649,029) Class B (260) -- Class Y (1,281) -- Net realized gain Class A (1,590,719) (3,556,158) Excess distribution of realized gain (Note 1) Class A (39,633) -- _____________________________________________________________________________________________________________ Total distributions (13,202,896) (23,205,187) _____________________________________________________________________________________________________________ Capital share transactions (Note 7) _____________________________________________________________________________________________________________ Proceeds from sales Class A shares (Note 2) 70,167,552 332,640,161 Class B shares 4,154,168 -- Class Y shares 1,298,306 -- Reinvestment of distribution at net asset value Class A shares 12,559,075 21,996,385 Class B shares 241 -- Class Y shares 1,280 -- Payments for redemptions Class A shares (82,319,279) (112,115,501) Class B shares (Note 2) (14,234) -- Class Y shares (21) -- _____________________________________________________________________________________________________________ Increase in net assets from capital share transactions 5,847,088 242,521,045 _____________________________________________________________________________________________________________ Total increase in net assets 27,664,553 211,095,004 Net assets at beginning of period 466,268,952 255,173,948 _____________________________________________________________________________________________________________ Net assets at end of period (including undistributed net investment income of $2,955,827 and $1,129,458) $493,933,505 $466,268,952 _____________________________________________________________________________________________________________ See accompanying notes to financial statements. /TABLE PAGE Notes to financial statements IDS Global Bond Fund (Unaudited as to April 30, 1995) ______________________________________________________________________________ 1. Summary of significant accounting policies IDS Global Bond Fund is a series of IDS Global Series, Inc. and is registered under the Investment Company Act of 1940 (as amended) as a non-diversified, open-end management investment company. IDS Global Series, Inc. has 10 billion authorized shares of capital stock which can be freely allocated among the separate series as designated by the board of directors. The fund offers Class A, Class B and Class Y shares. Class A shares are sold with a front-end sales charge. Class B shares, which the fund began offering on March 20, 1995, may be subject to a contingent deferred sales charge and such shares automatically convert to Class A after eight years. Class Y shares, which the fund also began offering on March 20, 1995, have no sales charge and are offered only to qualifying institutional investors. All classes of shares have identical voting, dividend, liquidation and other rights, the same terms and conditions, except that the level of distribution fee transfer agency fee and service fee (class specific expenses) differ among classes. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. Significant accounting policies followed by the fund are summarized below: Valuation of securities All securities are valued at the close of each business day. Securities traded on national securities exchanges or included in national market systems are valued at the last quoted sales price; securities for which market quotations are not readily available, are valued at fair value according to methods selected in good faith by the board of directors. Determination of fair value involves, among other things, reference to market indexes, matrixes and data from independent brokers. Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates; those maturing in 60 days or less are valued at amortized cost. Options transactions In order to produce incremental earnings, protect gains, and facilitate buying and selling of securities for investment purposes, the fund may buy or write options traded on any U.S or foreign exchange or in the over-the-counter market where the completion of the obligation is dependent upon the credit standing of the other party. The fund may also buy and sell put and call options and write covered call options on portfolio securities and may write cash-secured put options. The risk in writing a call option is that the fund gives up the opportunity of profit if the market price of the security increases. The risk in writing a put option is that the fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the fund pays a premium whether or not the option is exercised. The fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. PAGE Option contracts are valued daily at the closing prices on their primary exchanges and unrealized appreciation or depreciation is recorded. The fund will realize a gain or loss upon expiration or closing of the option transaction. When options on debt securities or futures are exercised, the fund will realize a gain or loss. When other options are exercised, the proceeds on sales for a written call option, the purchase cost for a written put option or the cost of a security for a purchased put or call option is adjusted by the amount of premium received or paid. Futures transactions In order to gain exposure to or protect itself from changes in the market, the fund may buy and sell stock index or interest rate futures contracts traded on any U.S. or foreign exchange. The fund also may buy or write put and call contracts on these futures contracts. Risks of entering into futures contracts and related options include the possibility that there may be an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities. Upon entering into a futures contract, the fund is required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The fund recognizes a realized gain or loss when the contract is closed or expires. Foreign currency translations and foreign currency contracts Securities and other assets and liabilities denominated in foreign currencies are translated daily into U.S. dollars at the closing rate of exchange. Foreign currency amounts related to the purchase or sale of securities and income and expenses are translated at the exchange rate on the transaction date. The effect of changes in foreign exchange rates on realized and unrealized security gains or losses is reflected as a component of such gains or losses. In the statement of operations, net realized gains or losses from foreign currency transactions may arise from sales of foreign currency, closed forward contracts, exchange gains or losses realized between the trade date and settlement dates on securities transactions, and other translation gains or losses on dividend, interest income and foreign withholding taxes. The fund may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuation. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. The fund is subject to the credit risk that the other party will not complete the obligations of the contract. Federal taxes Since the fund's policy is to comply with all sections of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders, no provision for income or excise taxes is required. Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of the deferral of losses on certain futures contracts, the recognition of certain foreign currency gains (losses) as ordinary income (loss) for tax purposes, and losses deferred due to "wash sale" transactions. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. The effect on dividend distributions of certain book-to-tax differences is presented as "excess distributions" in the statement of changes in net assets. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the fund. Dividends to shareholders Dividends from net investment income, declared daily and paid each calendar quarter, are reinvested in additional shares of the fund at net asset value or payable in cash. Capital gains, when available, are distributed along with the last income dividend of the calendar year. PAGE Other Security transactions are accounted for on the date securities are purchased or sold. Dividend income is recognized on the ex-dividend date or upon receipt of ex-dividend notification in the case of certain foreign securities. For U.S. dollar denominated bonds, interest income includes level-yield amortization of premium and discount. For foreign bonds, except for original issue discount, the fund does not amortize premium and discount. ______________________________________________________________________________ 2. Expenses and sales charges Under terms of a prior agreement that ended March 19, 1995, the fund paid American Express Financial Corporation a fee for managing its investments, recordkeeping and other specified services. The fee was 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. Also under terms of the prior agreement, the fund paid American Express Financial Corporation a distribution fee at an annual rate of $6 per shareholder account and a transfer agency fee at an annual rate of $15.50 per shareholder account. The transfer agency fee was reduced by earnings on monies pending shareholder redemptions. Effective March 20, 1995, when the fund began offering multiple classes of shares, the fund entered into agreements with American Express Financial Corporation for managing its portfolio, providing administrative services and serving as transfer agent as follows: Under its Investment Management Services Agreement, American Express Financial Corporation determines which securities will be purchased, held or sold. The management fee is a percentage of the fund's average daily net assets in reducing percentages from 0.77% to 0.067% annually. Under an Administrative Services Agreement, the fund pays American Express Financial Corporation for administration and accounting services at a percentage of the fund's average daily net assets in reducing percentages from 0.06% to 0.04% annually. Under a separate Transfer Agency Agreement, American Express Financial Corporation maintains shareholder accounts and records. The fund pays American Express Financial Corporation an annual fee per shareholder account for this service as follows: o Class A $15 o Class B $16 o Class Y $15 Also effective March 20, 1995, the fund entered into agreements with American Express Financial Advisors Inc. for distribution and shareholder servicing-related services as follows: Under the Distribution Agreement, the fund pays a distribution fee at an annual rate of 0.75% of the fund's average daily net assets attributable to Class B shares for distribution- related services. Under a Shareholder Service Agreement, the fund pays a fee for service provided to shareholders by financial advisors and other servicing agents. The fee is calculated at a rate of 0.175% of the fund's average daily net assets attributable to Class A and Class B shares. American Express Financial Corporation will assume and pay any expenses (except taxes and brokerage commissions) that exceed the most restrictive applicable state expense limitation. Sales charges by American Express Financial Advisors Inc. for distributing fund shares were $1,348,883 for Class A for the six months ended April 30, 1995. The fund also pays custodian fees to American Express Trust Company, an affiliate of American Express Financial Corporation. 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 $1,169 for the six months ended April 30, 1995. PAGE 3. Securities transactions Cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated $328,521,120 and $203,438,081, respectively, for the six months ended April 30, 1995. Realized gains and losses are determined on an identified cost basis. ______________________________________________________________________________ 4. Lending of portfolio securities At April 30, 1995, securities valued at $13,325,650 were on loan to brokers. For collateral, the fund received U.S. government securities valued at $13,579,337. Income from securities lending amounted to $12,007 for the six months ended April 30, 1995. 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. ______________________________________________________________________________ 5. Option contracts written The number of contracts and premium amounts associated with option contracts written is as follows:
Six months ended April 30, 1995 ______________________________________________________ Puts Calls Contracts Premium Contracts Premium ______________________________________________________________________________ Balance Oct. 31, 1994 100 $110,238 100 $121,800 Opened 200 308,375 425 704,750 Closed (300) (418,613) (350) (572,425) Expired -- -- (50) (110,375) ______________________________________________________________________________ Balance April 30, 1995 -- $ -- 125 $143,750 ______________________________________________________________________________ ______________________________________________________________________________ 6. Foreign currency contracts At April 30, 1995, the fund had entered into ten foreign currency exchange contracts that obligate the fund to deliver currency at specified future dates. The net unrealized appreciation of $100,074 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 April 30, 1995 received April 30, 1995 ____________________________________________________________________________________________________ May 8, 1995 3,008,571 $ 3,008,571 258,000,000 $ 3,071,969 U.S. Dollar Japanese Yen May 8, 1995 4,418,605 4,418,605 380,000,000 4,524,603 U.S. Dollar Japanese Yen May 10, 1995 3,719,059 3,719,059 316,120,000 3,764,961 U.S. Dollar Japanese Yen May 11, 1995 3,999,429 3,999,429 5,600,000 4,022,757 U.S. Dollar Singapore Dollar May 15, 1995 45,220,674 45,220,674 3,798,988,821 45,199,153 U.S. Dollar Japanese Yen May 15, 1995 712,588,800 8,478,152 8,482,190 8,482,190 Japanese Yen U.S. Dollar May 15, 1995 3,089,856,400 36,762,122 36,779,626 36,779,626 Japanese Yen U.S. Dollar May 22, 1995 5,034,586 5,034,586 7,060,000 5,078,662 U.S. Dollar Singapore Dollar July 27, 1995 3,038,823 3,038,823 242,100,000 2,913,179 U.S. Dollar Japanese Yen July 31, 1995 4,872,760 4,872,760 400,000,000 4,815,755 U.S. Dollar Japanese Yen ____________ ____________ $118,552,781 $118,652,855 /TABLE PAGE 7. Capital share transactions Transactions in shares of capital stock for the periods indicated are as follows:
________________________________________________________________________________________ Six months ended April 30, 1995 Year ended 10/31/94 Class A Class B* Class Y* Class A ________________________________________________________________________________________ Sold 12,324,357 702,388 224,715 55,715,517 Issued for reinvested distributions 2,210,664 41 220 3,701,527 Redeemed (14,477,340) (2,549) (4) (19,204,423) _______________________________________________________________________________________ Net increase 57,681 699,880 224,931 40,212,621 _______________________________________________________________________________________ *Commencement of operations was March 20, 1995. _________________________________________________________________________________________ /TABLE PAGE
8. Financial highlights The table below shows certain financial information for evaluating the fund's results. Fiscal period ended Oct. 31, Per share income and capital changes* 1995** 1994 1993 1992 1991 1990 Classes A B Y Net asset value, $5.76 $5.76 $5.76 $6.27 $5.91 $5.58 $5.46 $5.22 beginning of period Income from investment operations: Net investment income .17 .07 .07 .36 .26 .33 .50 .40 Net gains (losses) .27 .27 .27 (.45) .62 .47 .12 .27 (both realized and unrealized) Total from investment .44 .34 .34 (.09) .88 .80 .62 .67 operations Less distributions: Dividends from net (.15) (.07) (.07) (.35) (.27) (.30) (.50) (.40) investment income Distributions from (.02) -- -- (.07) (.10) (.06) -- (.03) realized gains Excess distribution of realized gains -- -- -- -- (.15) (.11) -- -- Total distributions (.17) (.07) (.07) (.42) (.52) (.47) (.50) (.43) Net asset value, $6.03 $6.03 $6.03 $5.76 $6.27 $5.91 $5.58 $5.46 end of period Ratios/supplemental data 1995** 1994 1993 1992 1991 1990 Classes A B Y Net assets, end of period $488 $4 $1 $466 $255 $91 $50 $28 (in millions) Ratio of expenses to 1.23%+ 2.09%+ 1.09%+ 1.26% 1.31% 1.39% 1.34% 1.73%++ average daily net assets Ratio of net income 5.98%+ 7.21%+ 4.01%+ 5.56% 5.11% 6.50% 7.15%10.60%++ to average daily net assets Portfolio turnover rate 51% 51% 51% 64% 90% 160% 123% 130% (excluding short-term securities) Total return*** 7.8%+++ 5.9% 5.9% (1.5%) 15.8% 14.8% 11.9% 13.3% *For a share outstanding throughout the period. Rounded to the nearest cent. **Six months ended April 30, 1995 for Class A and commencement of operations March 20, 1995 for Class B and Y (Unaudited). +Adjusted to an annual basis. ***Total return does not reflect payment of a sales charge. ++For the nine months ended July 31, 1990, American Express Financial Corporation voluntarily reimbursed the fund for a portion of its expenses. Had American Express Financial Corporation not done so, the ratio of expenses and ratio of net investment income would have been 1.87% and 10.46%, respectively. +++For the fiscal period ended April 30, 1995, the annualized total return is 16.3%.
PAGE
Investments in securities IDS Global Bond Fund (Percentages represent value of April 30, 1995 (Unaudited) investments compared to net assets) _____________________________________________________________________________________________________________________________ Bonds (88.2 %)(b) _____________________________________________________________________________________________________________________________ Issuer Coupon Maturity Principal Value(a) rate year amount _____________________________________________________________________________________________________________________________ Argentina (3.6%) Argentina Euro (U.S. Dollar) 6.50 % 2005 $12,000,000 (c) $ 7,132,500 Argentina Republic (U.S. Dollar) 4.25 2023 20,500,000 8,968,750 Telecom Argentina (U.S. Dollar) 8.375 2000 2,000,000 (d) 1,680,000 ____________ Total 17,781,250 _____________________________________________________________________________________________________________________________ Australia (1.0%) Government of Australia (Australian Dollar) 7.50 2005 7,800,000 4,877,574 _____________________________________________________________________________________________________________________________ Austria (1.4%) Republic of Austria Euro (Japanese Yen) 5.25 1998 540,000,000 6,949,800 _____________________________________________________________________________________________________________________________ Brazil (2.2%) Brazil C Bonds (U.S. Dollar) 4.00 2014 4,845,000 2,089,406 Brazil DCB Bonds (U.S. Dollar) 6.75 2012 18,000,000 9,000,000 ______________ Total 11,089,406 _____________________________________________________________________________________________________________________________ Canada (6.2%) Government of Canada (Canadian Dollar) 10.50 2001 29,200,000 23,837,420 Hydro Quebec (U.S. Dollar) 9.375 2030 4,000,000 4,432,800 Province of Quebec (U.S. Dollar) 11.00 2015 800,000 934,168 Rogers Cable System (Canadian Dollar) 9.65 2014 2,000,000 1,235,740 ______________ Total 30,440,128 _____________________________________________________________________________________________________________________________ See accompanying notes to financial statements. PAGE China (0.9%) Guang Dong Province Enterprises (U.S. Dollar) 8.75 2003 5,000,000 (d) 4,307,750 _____________________________________________________________________________________________________________________________ Colombia (0.7%) Republic of Colombia (U.S. Dollar) 7.25 2004 4,100,000 3,485,000 _____________________________________________________________________________________________________________________________ Denmark (2.5%) Government of Denmark (Danish Krone) 8.00 2003 25,200,000 4,481,568 9.00 1998 40,000,000 7,584,000 ______________ Total 12,065,568 _____________________________________________________________________________________________________________________________ Finland (0.4%) City of Helsinki (U.S. Dollar) 7.90 2006 2,000,000 (d) 1,871,800 _____________________________________________________________________________________________________________________________ Germany (17.2%) Federal Republic of Germany (Deutsche Mark) 6.00 1997 26,500,000 19,331,220 6.00 2016 15,500,000 9,328,365 6.375 1998 32,200,000 23,449,650 7.50 2004 11,870,000 8,833,535 8.25 1997 6,000,000 4,569,420 8.75 2001 24,675,000 19,610,210 _______________ Total 85,122,400 _____________________________________________________________________________________________________________________________ Indonesia (0.8%) Pt Indah Kiat Euro (U.S. Dollar) 8.875 2000 2,500,000 2,117,375 Tjiwi Kimia (U.S. Dollar) 13.25 2001 2,000,000 2,070,000 _______________ Total 4,187,375 _____________________________________________________________________________________________________________________________ Italy (6.3%) Government of Italy (Italian Lira) 8.50 1999 31,200,000,000 16,224,000 8.50 2004 21,700,000,000 9,765,000 Republic of Italy (U.S. Dollar) 6.875 2023 6,000,000 4,911,300 __________ Total 30,900,300 ______________________________________________________________________________________________________________________________ PAGE Japan (2.6%) Euro Investment Bank (Japanese Yen) 5.875 1999 380,000,000 5,152,800 Govt of Japan (Japanese Yen) 4.40 2004 3,540,000,000 44,936,215 Japan Development Bank (Japanese Yen) 6.50 2001 550,000,000 7,799,000 ____________ Total 57,888,015 _____________________________________________________________________________________________________________________________ Korea (1.1%) Korea Electric Power (U.S. Dollar) 7.75 2013 6,100,000 5,614,196 _____________________________________________________________________________________________________________________________ Mexico (2.7%) BNCE (U.S. Dollar) 7.25 2004 1,000,000 677,500 Mexican Cetes Treasury Bill (Mexican Peso) Zero Coupon 68.307 1995 20,000,000 (e) 2,662,700 42.29 1996 17,281,150 (e) 1,942,972 Mexican Tesobonos Treasury Bill (Mexican Peso) Zero Coupon 40.637 1995 2,300,000 (e) 2,190,336 Petroleos Mexicanos (U.S. Dollar) 8.625 2023 3,000,000 1,830,000 United Mexican States (U.S. Dollar) 8.50 2002 4,000,000 2,960,000 United Mexican States Euro (U.S. Dollar) 6.25 2019 2,500,000 1,307,813 ____________ Total 13,571,321 ______________________________________________________________________________________________________________________________ Netherlands (0.2%) Aegon Euro (U.S. Dollar) 4.75 2004 600,000 695,250 _____________________________________________________________________________________________________________________________ New Zealand (1.1%) Government of New Zealand (New Zealand Dollar) 6.50 2000 8,685,000 5,500,037 _____________________________________________________________________________________________________________________________ Philippines (0.3%) Philippines Long Distance Telephone (U.S. Dollar) 10.625 2004 1,500,000 1,477,500 ______________________________________________________________________________________________________________________________ Poland (1.0%) Poland Discount (U.S. Dollar) 6.812 2024 7,000,000 4,847,500 ______________________________________________________________________________________________________________________________ Sweden (2.9%) Government of Sweden (Swedish Krona) 10.25 2003 42,000,000 5,533,920 11.00 1999 61,400,000 8,535,214 ___________ Total 14,069,134 _____________________________________________________________________________________________________________________________ PAGE United Kingdom (10.5%) Abbey Natl (U.S. Dollar) 8.20 2004 5,000,000 5,161,850 United Kingdom Treasury (British Pound) 8.00 2003 18,650,000 29,159,275 9.00 2000 10,700,000 17,697,693 _____________ Total 52,018,818 _____________________________________________________________________________________________________________________________ United States (13.5%) AMR (U.S. Dollar) 9.75 2021 500,000 524,380 10.00 2021 1,000,000 1,073,200 Chesapeake (U.S. Dollar) 9.875 2003 1,000,000 1,118,430 Fairchild Inds (U.S. Dollar) Sr Sec Nts 12.25 1999 1,000,000 998,750 General Motors (U.S. Dollar) 9.125 2001 2,000,000 2,145,020 Georgia-Pacific (U.S. Dollar) Credit Sensitive Nts 9.85 1997 500,000 523,860 Government Natl Mtge Assn (U.S. Dollar) 8.00 2024 4,981,634 4,987,861 Kearny Real Estate LP (U.S. Dollar) 6.55 2000 2,500,000 2,490,625 PDV Amer (U.S. Dollar) 7.875 2003 3,500,000 2,992,780 Phillips Pertoleum (U.S. Dollar) 7.92 2023 3,115,000 2,891,841 Questar Pipeline (U.S. Dollar) 9.375 2021 1,000,000 1,098,950 Resolution Funding Corp (U.S. Dollar) Zero Coupon 7.50 2017 2,000,000 (e) 371,180 8.00 2016 3,259,000 (e) 653,038 Southern California Gas (U.S. Dollar) 7.375 2023 900,000 821,700 Tele-Communications (U.S. Dollar) 7.875 2013 3,000,000 2,601,390 Texas Utilities (U.S. Dollar) 1st Mtge 9.75 2021 500,000 549,855 U.S. Treasury (U.S. Dollar) 4.75 1998 14,535,000 13,674,673 7.50 2016 4,000,000 4,025,360 7.625 2022 13,000,000 (f) 13,325,650 8.875 2019 8,595,000 (g) 9,927,397 ____________ Total 66,795,940 _____________________________________________________________________________________________________________________________ Total bonds (Cost: $432,423,238) $435,556,062 _____________________________________________________________________________________________________________________________ /TABLE PAGE
Common stocks (0.9%) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Hanson Trust 583,005 (b) $ 2,215,419 Woolworth's LTD 1,067,322 (b) 2,320,358 _____________________________________________________________________________________________________________________________ Total common stocks (Cost: $4,516,945) $ 4,535,777 _____________________________________________________________________________________________________________________________
Short-term securities (9.2%) _____________________________________________________________________________________________________________________________ Issuer Annualized Amount Value(a) yield on payable date of at purchase maturity _____________________________________________________________________________________________________________________________ U.S. government agencies (1.5%) Federal Home Loan Mtge Corp Disc Notes 05-15-95 5.90% $3,400,000 $ 3,391,130 05-22-95 5.90 2,500,000 2,490,624 Federal Natl Mtge Assn Disc Note 05-12-95 5.91 1,300,000 1,297,240 _____________ Total 7,178,994 _____________________________________________________________________________________________________________________________ Commercial paper (7.7%) AIG Funding 05-18-95 5.98 4,900,000 4,884,613 Amer General 05-22-95 6.00 4,000,000 (h) 3,984,743 Aon 05-24-95 5.98 800,000 796,694 AT&T 05-03-95 6.03 900,000 899,400 AT&T Capital 05-23-95 6.02 800,000 796,816 Cafco 06-05-95 6.00 900,000 894,487 Cargill 05-24-95 5.98 2,500,000 (h) 2,489,670 Ciesco LP 06-01-95 5.98 4,600,000 (h) 4,574,911 PAGE Kredietbank North Amer Finance 05-22-95 6.00 3,000,000 2,988,557 Lincoln Natl 05-30-95 5.99 5,600,000 (h) 5,571,260 Mobil Australia Finance 05-23-95 6.00 3,437,000 (h) 3,423,321 Penney (JC) 05-15-95 6.00 700,000 698,143 St. Paul Companies 05-19-95 5.99 4,000,000 (h) 3,986,755 USL Capital 05-16-95 6.01 2,100,000 2,094,070 ____________ Total 38,083,440 _____________________________________________________________________________________________________________________________ Total short-term securities (Cost: $45,262,434) $ 45,262,434 _____________________________________________________________________________________________________________________________ Total investments in securities (Cost: $482,202,617)(i) $485,354,273 _____________________________________________________________________________________________________________________________ PAGE Notes to investments in securities _____________________________________________________________________________________________________________________________ (a) Securities are valued by procedures described in Note 1 to the financial statements. (b) Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in the currency indicated. (c) Interest rate varies, rate shown is the effective rate on April 30, 1995. (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) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition. (f) Security is partially or fully on loan. See Note 4 to the financial statements. (g) At April 30, 1995, securities valued at $3,465,060 were held to cover open currency call options written as follows: Issuer Number Exercise Expiration Value(a) of contracts price date ____________________________________________________________________________________ June Deutsche Mark Futures 100 $72 May 1995 $90,000 June Deutsche Mark Futures 25 73 May 1995 10,313 (h) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." This security has been determined to be liquid under guidelines established by the board of directors. (i) At April 30, 1995, the cost of securities for federal income tax purposes was approximately $436,999,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $ 21,570,000 Unrealized depreciation (18,151,000) _____________________________________________________________________________ Net unrealized appreciation $ 3,419,000 _____________________________________________________________________________
PAGE Directors and officers Directors and officers of the fund _____________________________________________________________________ President and interested director William R. Pearce President of all funds in the IDS MUTUAL FUND GROUP. _____________________________________________________________________ Independent directors Lynne V. Cheney Distinguished fellow, American Enterprise Institute for Public Policy Research. Robert F. Froehlke Former president of all funds in the IDS MUTUAL FUND GROUP. Heinz F. Hutter Former president and chief operating officer, Cargill, Inc. Anne P. Jones Attorney and telecommunications consultant. Donald M. Kendall Former chairman and chief executive officer, PepsiCo, Inc. Melvin R. Laird Senior counsellor for national and international affairs, The Reader's Digest Association, Inc. Lewis W. Lehr Former chairman and chief executive officer, Minnesota Mining and Manufacturing Company (3M). Edson W. Spencer Former chairman and chief executive officer, Honeywell, Inc. Wheelock Whitney Chairman, Whitney Management Company. C. Angus Wurtele Chairman of the board and chief executive officer, The Valspar Corporation. _____________________________________________________________________ Interested directors who are officers and/or employees of American Express Financial Corporation William H. Dudley Executive vice president, American Express Financial Corporation. David R. Hubers President and chief executive officer, American Express Financial Corporation. John R. Thomas Senior vice president, American Express Financial Corporation. _____________________________________________________________________ Officers who also are officers and or/employees of American Express Financial Corporation Peter J. Anderson Vice president of all funds in the IDS MUTUAL FUND GROUP. Melinda S. Urion Treasurer of all funds in the IDS MUTUAL FUND GROUP. _____________________________________________________________________ Other officer Leslie L. Ogg Vice president, general counsel and secretary of all funds in the IDS MUTUAL FUND GROUP . PAGE IDS mutual funds Cash equivalent investments These money market funds have three main goals: conservation of capital, constant liquidity and the highest possible current income consistent with these objectives. Very limited risk. IDS Cash Management Fund Invests in such money market securities as high quality commercial paper, bankers' acceptances, certificates of deposit (CDs) and other bank securities. (icon of) piggy bank IDS Tax-Free Money Fund Invests primarily in short-term bonds and notes issued by state and local governments to seek high current income exempt from federal income taxes. (icon of) shield with piggy bank enclosed Income investments The funds in this group invest their assets primarily in corporate bonds or government securities to seek interest income. Secondary objective is capital growth. Risk varies by bond quality. IDS Global Bond Fund Invests primarily in debt securities of U.S. and foreign issuers to seek high total return through income and growth of capital. (icon of) globe IDS Extra Income Fund Invests mainly in long-term, high-yielding corporate fixed-income securities in the lower rated, higher risk bond categories to seek high current income. Secondary objective is capital growth. (icon of) cornucopia PAGE IDS Bond Fund Invests mainly in corporate bonds, at least 50% in the higher rated, lower risk bond categories, or the equivalent, and in government bonds. (icon of) greek column IDS Selective Fund Invests in high-quality corporate bonds and other highly rated debt instruments including government securities and short-term investments. Seeks current income and preservation of capital. (icon of) skyline IDS Federal Income Fund Invests primarily in securities issued or guaranteed as to the timely payment of principal and interest by the U.S. government, its agencies and instrumentalities. Seeks a high level of current income and safety of principal consistent with its type of investments. (icon of) federal building Tax-exempt income investments These funds provide tax-free income by investing in municipal bonds. The income is generally free from federal income tax. Risk varies by bond quality. IDS High Yield Tax-Exempt Fund Invests primarily in medium- and lower-quality municipal bonds and notes. Lower-quality securities generally involve greater risk of principal and income. (icon of) shield with basket of apples enclosed PAGE IDS State Tax-Exempt Funds (CA, MA, MI, MN, NY, OH) Invests primarily in high- and medium-grade municipal securities to provide income to residents of each respective state that is exempt from federal, state and local income taxes. (New York is the only state that is exempt at the local level.) (icon of) shield with U.S. enclosed IDS Tax-Exempt Bond Fund Invests mainly in bonds and notes of state or local government units, with at least 75% in the four highest rated, lowest risk bond categories. (icon of) shield with Greek column IDS Insured Tax-Exempt Fund Invests primarily in municipal securities that are insured as to the timely payment of principal and interest. The insurance feature minimizes credit risk of the fund but does not guarantee the market value of the fund's shares. (icon of) shield with eagle head Growth and income investments These funds focus on securities of medium to large, well-established companies that offer long-term growth of capital and reasonable income from dividends and interest. Moderate risk. IDS International Fund Invests primarily in common stocks of foreign companies that offer potential for superior growth. The fund may invest up to 20% of its assets in the U.S. market. (icon of) three flags IDS Managed Retirement Fund Invests in a combination of common stocks, fixed-income investments and money market securities to seek a maximum total return through a combination of growth of capital and current income. (icon of) bird in a nest PAGE IDS Equity Select Fund Invests primarily in a combination of moderate growth stocks, higher-yielding equities and bonds. Seeks growth of capital and income. (icon of) three apple trees IDS Blue Chip Advantage Fund Invests in selected stocks from a major market index. Securities purchased are those recommended by our research analysts as the best from each industry represented on the index. Offers potential for long-term growth as well as dividend income. (icon of) ribbon IDS Stock Fund Invests in common stocks of companies representing many sectors of the economy. Seeks current income and growth of capital. (icon of) building with columns IDS Equity Value Fund Invests primarily in undervalued common stocks that offer potential for growth of capital and income. (icon of) three growing flowers IDS Utilities Income Fund Invests primarily in the stocks of public utility companies to seek high current income and growth of income and capital with reduced volatility. (icon of) electrical cord IDS Diversified Equity Income Fund Invests primarily in high-yielding common stocks to seek high current income and, secondarily, to benefit from the growth potential offered by stock investments. (icon of) four puzzle pieces IDS Mutual Invests in a balance between common stocks and senior securities (preferred stocks and bonds). Seeks a balance of growth of capital and current income. (icon of) scale of justice PAGE Growth investments Funds in this group seek capital growth, primarily from common stocks. They are high risk mutual funds with a potential for high reward. IDS Discovery Fund Invests in small- and medium-size, growth-oriented companies emphasizing technological innovation and productivity enhancement. Buys and holds larger growth-oriented stocks. (icon of) ship IDS Strategy Aggressive Fund Invests primarily in common stocks of companies that are selected for their potential for above-average growth. Above-average means that their growth potential is better, in the opinion of the portfolio's investment manager, than the Standard & Poor's Corporation (S&P) 500 Stock Index. (icon of) chess piece IDS Growth Fund Invests primarily in companies that have above-average potential for long-term growth as a result of new management, marketing opportunities or technological superiority. (icon of) flower IDS Global Growth Fund Invests in stocks of companies throughout the world that are positioned to meet market needs in a changing world economy. These companies offer above-average potential for long-term growth. (icon of) world IDS New Dimensions Fund Invests primarily in companies with significant growth potential due to superiority in technology, marketing or management. The fund frequently changes its industry mix. (icon of) dimension IDS Progressive Fund Invests primarily in undervalued common stocks. The fund holds stocks for the long term with the goal of capital growth. (icon of) shooting star PAGE Specialty growth investment This fund aggressively seeks capital growth as a hedge against inflation. IDS Precious Metals Fund Invests primarily in the securities of foreign or domestic companies that explore for, mine and process or distribute gold and other precious metals. This is the most aggressive and most speculative IDS mutual fund. (icon of) cart of precious gems For more complete information about any of these funds, including charges and expenses, you can obtain a prospectus by contacting your financial advisor or writing to American Express Shareholder Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it carefully before you invest or send money. PAGE Quick telephone reference American Express Telephone Transaction Service Redemptions and exchanges, dividend payments or reinvestments and automatic payment arrangements National/Minnesota: 800-437-3133 Mpls./St. Paul area: 671-3800 American Express Shareholder Service Fund performance, objectives and account inquiries 612-671-3733 TTY Service For the hearing impaired 800-846-4852 American Express Infoline Automated account information (TouchTone phones only), including current fund prices and performance, account values and recent account transactions National/Minnesota: 800-272-4445 Mpls./St. Paul area: 671-1630 AMERICAN EXPRESS FINANCIAL ADVISORS IDS Global Bond Fund IDS Tower 10 Minneapolis, MN 55440-0010 PAGE IDS GLOBAL GROWTH FUND 1995 semiannual report (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. Distributed by American Express Financial Advisors Inc. PAGE (icon of) world It's a big world after all No one needs to be told that the world is changing rapidly. For example, some years ago U.S. stocks accounted for about two-thirds of the total value of stocks worldwide. Today, that figure is down to about one-third, as many foreign stock markets have enjoyed explosive growth. Global Growth Fund seeks to take advantage of that trend by investing in companies throughout the world, not just the United States. For the most part, these are fast-growing foreign companies involved in essential businesses such as infrastructure creation, finance and environmental clean-up. As they prosper, Global Growth Fund offers investors the potential to prosper along with them. Contents From the president 3 From the portfolio manager 3 Ten largest holdings 5 Financial statements 6 Notes to financial statements 9 Investments in securities 19 Directors and officers 24 IDS mutual funds 25 PAGE To our shareholders (Picture of) William Pearce William R. Pearce President of the fund From the president As I indicated in the fund's annual report, new agreements between the fund and American Express Financial Corporation were approved by share- holders in November 1994. The new agreements became effective when the fund began offering multiple classes of shares on March 20, 1995. The advantage of offering more than a single class of shares is that investors may choose how they wish to pay sales charges. These charges compensate your American Express financial advisor (formerly called your IDS planner), who is committed to providing you with outstanding services. Adding new classes of mutual fund shares does make the presentation of financial information in this report more complex. However, we will continue our effort to make the reports easier to read and understand. Meanwhile, your advisor is available to answer your questions. William R. Pearce PAGE (Picture of) Edward F. Korff Portfolio manager From the portfolio manager Foreign stock markets, expecially those in developing nations, are known for their volatility. That fact was reinforced during the past six months as several markets experienced severe downturns that combined to make for perhaps the most difficult period for U.S. investors overseas in the past several years. IDS Global Growth Fund held up better than did most of the markets in which it was invested, but it nevertheless incurred a loss for the November 1994 through April 1995 period. After generating extraordinarily strong returns in 1993, most foreign markets struggled throughout 1994. Still, this fund managed to stay in positive territory until the start of the current fiscal year last November, when fears of higher interest rates began driving down stocks in many smaller markets. On the heels of that, Mexico devalued the peso in December, whch sent Mexican stocks into a tailspin that soon spread to other Latin American markets and even to emerging markets in Asia. In a matter of weeks, some markets fell anywhere from 10% to 40% measured in U.S. dollars-the currency of record for U.S. investors. Diversification helps While it was impossible to avoid the considerable impact of these events, the fund's decline was tempered by our well-diversified portfolio. A prime example is our substantial exposure to European markets, particularly Germany and France. These markets performed relatively well, and we also benefited from appreciating currencies (the German mark and French franc), which enhanced returns to U.S.-based investors. In other major markets, our holdings in Japan gave us lackluster results, but again a strengthening currency (the yen) helped out. (When other currencies strengthen against the dollar, the value of overseas investments increase for U.S. investors.) It wasn't until March, though, that the smaller markets were able to right themselves. True to their nature and buoyed by improving currency situations, they began moving forward with nearly as much vigor as they previously retreated. By that time, the U.S. market, to which we had substantially increased our exposure, was also enjoying a strong rally. The result was a gain by our portfolio of nearly 10% during the final two months of the period. On firmer ground At this writing (May), it appears that the global investing environment remains gerally positive, certainly better than last year at this time. The most favorable factors include reasonably good inflation outlooks around the world, which should tend to hold down interest rates; moderately expanding economies in most countries; and attractively low prices on stocks of many solid companies. We're also encouraged by the fact that, although some of them lost ground during the past winter, the stocks in our portfolio generally outperformed their respective markets. This helps confirm our belief that we continue to find stocks with above-average long-term return potential. Although we can expect volatility due to always-unpredictable events, we expect our long-term investment strategy to pay off for the fund and its shareholders in the months and years ahead. Edward F. Korff PAGE Class A 6-month performance (All figures per share) Net asset value (NAV) _____________________________ April 30, 1995 $ 6.25 _____________________________ Oct. 31, 1994 $ 6.96 _____________________________ Decrease $(0.71) _____________________________ Distributions Nov. 1, 1994 - April 30, 1995 _____________________________ From income $ 0.05 ____________________________ From capital gains $ 0.05 ____________________________ Total distributions $ 0.10 ____________________________ Total return** $(8.7%) ____________________________ Class B March 20, 1995 - April 30, 1995 (All figures per share) Net asset value (NAV) ____________________________ April 30, 1995 $ 6.25 ____________________________ March 20, 1995* $ 5.87 ____________________________ Increase $ 0.38 ____________________________ Distributions March 20, 1995 - April 30, 1995 ____________________________ From income $ -- ____________________________ From capital gains $ -- ____________________________ Total distributions $ -- ____________________________ Total return** $ 6.5% ____________________________ PAGE Class Y March 20, 1995 - April 30, 1995 (All figures per share) Net asset value (NAV) ____________________________ April 30, 1995 $ 6.25 ____________________________ March 20, 1995* $ 5.87 ____________________________ Increase $ 0.38 ____________________________ Distributions March 20, 1995* - April 30, 1995 ____________________________ From income $ -- ____________________________ From capital gains $ -- ____________________________ Total distributions $ -- ____________________________ Total return** $ 6.5%*** ____________________________ *Commencement of operations. **The prospectus discusses the effect of the sales charges on the various classes. ***The total return for the short period of operations may not be indicative of annual results. PAGE
IDS Global Growth Fund Your fund's ten largest holdings Percent Value (of fund's net assets) (as of April 30, 1995) Renong (Malaysia) 2.27% $15,187,500 2.50% Cv Bond 2005 Engaged in the engineering, construction and operation of major infrastruction projects in Malaysia. Hornbach (Germany) 2.23 14,973,675 The most rapidly growing "do-it-yourself" retailer in Germany. Douglas Holdings (Germany) 2.14 14,351,640 Specialty retailer. Buderus (Germany) 2.01 13,468,175 Engaged in the manufacture of metal products. Castorama Dubois (France) 2.00 13,374,620 A fast growing "do-it-yourself" retailer in France (currently expanding into Italy). AVA (Germany) 1.96 13,125,630 Engaged in retail sales through shopping center, supermarkets, discount department stores and many other specialty stores. Air Liquide (France) 1.91 12,836,320 One of the world's largest producers of industrial gases. Friedrich Grohe (Germany) 1.80 12,079,217 Largest manufacturer of faucets and fixtures in Europe. Bankgesellshchaft Berlin (Germany) 1.72 11,502,950 Dominant mortage bank in Berlin area. Veba (Germany) 1.67 11,163,990 Conglomerate with interests in energy, chemicals and telecommunications. (Pie chart) The ten holdings listed here make up 19.71% of the fund's net assets Note: Certain foreign investment risks include: changes in currency exchange rates, adverse political or economic order, and lack of similar regulatory requirements followed by U.S. companies.
PAGE Financial statements Statement of assets and liabilities IDS Global Growth Fund April 30, 1995
______________________________________________________________________________________________________________ Assets ______________________________________________________________________________________________________________ (Unaudited) Investments in securities, at value (Note 1): Investments in securities of unaffiliated issuers (identified cost $691,735,558) $690,995,0312 Investments in securities of affiliated issuer (identified cost $2,820,478) 2,725,312 Dividends and accrued interest receivable 2,271,050 Receivable for investment securities sold 498,458 Receivable for foreign currency contracts held, at value (Notes 1 and 4) 3,958,864 U.S. government securities held as collateral (Note 5) 16,284,284 _____________________________________________________________________________________________________________ Total assets 716,733,000 _____________________________________________________________________________________________________________ Liabilities ____________________________________________________________________________________________________________ Disbursements in excess of cash on demand deposit 664,599 Payable for investment securities purchased 3,929,333 Payable for forward foreign currency contracts held, at value (Notes 1 and 4) 3,980,933 Payable upon return of securities loaned (Note 5) 36,561,999 Accrued investment management services fee 28,882 Accrued distribution and service fees 5,859 Accrued transfer agency fee 9,151 Accrued administrative services fee 2,062 Other accrued expenses 169,518 _____________________________________________________________________________________________________________ Total liabilities 45,352,336 _____________________________________________________________________________________________________________ Net assets applicable to outstanding capital stock $671,380,664 _____________________________________________________________________________________________________________ Represented by _____________________________________________________________________________________________________________ Capital stock -- $.01 par value; (Note 1) $ 1,073,718 Additional paid-in capital 669,037,221 Undistributed net investment income 2,279,913 Accumulated net realized loss (Notes 1 and 8) (248,727) Unrealized depreciation (Notes 4 and 7) (761,461) _____________________________________________________________________________________________________________ Total -- representing net assets applicable to outstanding capital stock $671,380,664 _____________________________________________________________________________________________________________ Net assets applicable to outstanding shares: Class A $647,754,314 Class B $ 3,392,545 Class Y $ 20,233,805 Net asset value per share of outstanding capital stock: Class A shares 103,593,539 $ 6.25 Class B shares 542,945 $ 6.25 Class Y shares 3,235,354 $ 6.25 _____________________________________________________________________________________________________________ See accompanying notes to financial statements. PAGE Statement of operations IDS Global Growth Fund Six months ended April 30, 1995 _____________________________________________________________________________________________________________ Investment income _____________________________________________________________________________________________________________ (Unaudited) Income: Dividends (net of foreign taxes withheld of $36,232) $ 3,034,804 Interest 4,198,124 _____________________________________________________________________________________________________________ Total income 7,232,928 _____________________________________________________________________________________________________________ Expenses (Note 2): Investment management and services fee 2,618,341 Distribution fee 244,780 Transfer agency fee 787,249 Service fee 113,355 Administrative services fee 39,695 Compensation of directors 3,396 Compensation of officers 5,482 Custodian fees 290,366 Postage 80,275 Registration fees 101,013 Reports to shareholders 60,063 Audit fees 10,000 Administrative 4,130 Other 12,679 _____________________________________________________________________________________________________________ Total expenses 4,370,824 _____________________________________________________________________________________________________________ Investment income -- net 2,862,104 _____________________________________________________________________________________________________________ Realized and unrealized loss -- net _____________________________________________________________________________________________________________ Net realized loss on security and foreign currency transactions (including gain of $15,796 from foreign currency transactions)(Note 3) (232,848) Net change in unrealized appreciation or depreciation (61,660,190) _____________________________________________________________________________________________________________ Net loss on investments and foreign currency (61,893,038) _____________________________________________________________________________________________________________ Net decrease in net assets resulting from operations $(59,030,934) _____________________________________________________________________________________________________________ See accompanying notes to financial statements. /TABLE PAGE
Financial statements Statements of changes in net assets IDS Global Growth Fund _____________________________________________________________________________________________________________ Operations and distributions April 30, 1995 Oct. 31, 1994 _____________________________________________________________________________________________________________ Six months ended Year ended (Unaudited) Investment income--net $ 2,862,104 $ 4,023,830 Net realized gain (loss) on investments and foreign currency (232,848) 5,188,698 Net change in unrealized appreciation or depreciation (61,660,190) 33,656,723 _____________________________________________________________________________________________________________ Net increase (decrease) in net assets resulting from operations (59,030,934) 42,869,251 _____________________________________________________________________________________________________________ Distributions to shareholders from: Net investment income Class A (4,532,369) (1,094,030) Net realized gain Class A (5,265,856) (3,909,791) Excess distribution of realized gain (Note 1) Class A (15,796) -- _____________________________________________________________________________________________________________ Total distributions (9,814,021) (5,003,821) _____________________________________________________________________________________________________________ Capital share transactions (Note 6) _____________________________________________________________________________________________________________ Proceeds from sales Class A shares (Note 2) 149,534,004 487,713,822 Class B shares 3,294,214 -- Class Y shares 20,246,977 -- Reinvestment of distributions at net asset value Class A shares 9,751,488 4,980,642 Payments for redemptions Class A shares (111,345,131) (104,574,827) Class B shares (Note 2) (7,510) -- Class Y shares (1,227,454) -- _____________________________________________________________________________________________________________ Increase in net assets from capital share transactions 70,246,588 388,119,637 _____________________________________________________________________________________________________________ Total increase in net assets 1,401,633 425,985,067 Net assets at beginning of period 669,979,031 243,993,964 _____________________________________________________________________________________________________________ Net assets at end of period (including undistributed net investment income of $2,279,913 and $3,950,178) $671,380,664 $669,979,031 _____________________________________________________________________________________________________________ See accompanying notes to financial statements. /TABLE PAGE Notes to financial statements IDS Global Growth Fund (Unaudited as to April 30, 1995) ______________________________________________________________________________ 1. Summary of significant accounting policies IDS Global Growth Fund is a series of IDS Global Series, Inc. and is registered under the Investment Company Act of 1940 (as amended) as a diversified, open-end management investment company. IDS Global Series, Inc. has 10 billion authorized shares of capital stock that can be freely allocated among the separate series as designated by the board of directors. The fund offers Class A, Class B and Class Y shares. Class A shares are sold with a front-end sales charge. Class B shares, which the fund began offering on March 20, 1995, may be subject to a contingent deferred sales charge and such shares automatically convert to Class A after eight years. Class Y shares, which the fund also began offering on March 20, 1995, have no sales charge and are offered only to qualifying institutional investors. All classes of shares have identical voting, dividend, liquidation and other rights, and the same terms and conditions, except that the level of distribution fee, transfer agency fee and service fee (class specific expenses) differ among classes. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. Significant accounting policies followed by the fund are summarized below: Valuation of securities All securities are valued at the close of each business day. Securities traded on national securities exchanges or included in national market systems are valued at the last quoted sales price; securities for which market quotations are not readily available are valued at fair value according to methods selected in good faith by the board of directors. Determination of fair value involves, among other things, reference to market indexes, matrixes and data from independent brokers. Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates; those maturing in 60 days or less are valued at amortized cost. Options transactions In order to produce incremental earnings, protect gains, and facilitate buying and selling of securities for investment purposes, the fund may buy or write options traded on any U.S. or foreign exchange or in the over-the-counter market where the completion of the obligation is dependent upon the credit standing of the other party. The fund also may buy and sell put and call options and write covered call options on portfolio securities and may write cash-secured put options. The risk in writing a call option is that the fund gives up the opportunity of profit if the market price of the security increases. The risk in writing a put option is that the fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the fund pays a premium whether or not the option is exercised. The fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. PAGE Option contracts are valued daily at the closing prices on their primary exchanges and unrealized appreciation or depreciation is recorded. The fund will realize a gain or loss upon expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option or the cost of a security for a purchased put or call option is adjusted by the amount of premium received or paid. Futures transactions In order to gain exposure to or protect itself from changes in the market, the fund may buy and sell stock index futures contracts traded on any U.S. or foreign exchange. The fund also may buy or write put and call options on these contracts. Risks of entering into futures contracts and related options include the possibility that there may be an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities. Upon entering into a futures contract, the fund is required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The fund recognizes a realized gain or loss when the contract is closed or expires. Foreign currency translations and foreign currency contracts Securities and other assets and liabilities denominated in foreign currencies are translated daily into U.S. dollars at the closing rate of exchange. Foreign currency amounts related to the purchase or sale of securities and income and expenses are translated at the exchange rate on the transaction date. The effect of changes in foreign exchange rates on realized and unrealized security gains or losses is reflected as a component of such gains or losses. In the statement of operations, net realized gains or losses from foreign currency transactions may arise from sales of foreign currency, closed forward contracts, exchange gains or losses realized between the trade date and settlement dates on securities transactions, other translation gains or losses on dividends, interest income and foreign withholding taxes. The fund may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuation. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. The fund is subject to the credit risk that the other party will not complete the obligations of the contract. Federal taxes Since the fund's policy is to comply with all sections of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders, no provision for income or excise taxes is required. Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of the deferral of PAGE losses on certain futures contracts, the recognition of certain foreign currency gains (losses) as ordinary income (loss) for tax purposes and losses deferred due to "wash sale" transactions. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. The effect on dividend distributions of certain book-to-tax differences is presented as "excess distributions" in the statement of changes in net assets. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the fund. Dividends to shareholders An annual dividend declared and paid by the end of the calendar year from net investment income is reinvested in additional shares of the fund at net asset value or payable in cash. Capital gains, when available, are distributed along with the income dividend. Other Security transactions are accounted for on the date securities are purchased or sold. Dividend income is recognized on the ex-dividend date or upon receipt of ex-dividend notification in the case of certain foreign securities. Interest income, including level-yield amortization of premium and discount is accrued daily. ______________________________________________________________________________ 2. Expenses and sales charges Under terms of a prior agreement that ended March 19, 1995, the fund paid American Express Financial Corporation a fee for managing its investments, recordkeeping and other specified services. The fee was 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. Also under terms of the prior agreement, the fund paid American Express Financial Corporation 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 was reduced by earnings on monies pending shareholder redemptions. Effective March 20, 1995, when the fund began offering multiple classes of shares, the fund entered into agreements with American Express Financial Corporation for managing its portfolio, providing administrative services and serving as transfer agent as follows: Under its Investment Management Services Agreement, American Express Financial Corporation determines which securities will be purchased, held or sold. The management fee is a percentage of the fund's average daily net assets in reducing percentages from 0.8% to 0.675% annually. Under an Administrative Services Agreement, the fund pays American Express Financial Corporation for administration and accounting services at a percentage of the fund's average daily net assets in reducing percentages from 0.06% to 0.035% annually. Under a separate Transfer Agency Agreement, American Express Financial Corporation maintains shareholder accounts and records. The fund pays American Express Financial Corporation an annual fee per shareholder account for this service as follows: PAGE o Class A $15 o Class B $16 o Class Y $15 Also effective March 20, 1995, the fund entered into agreements with American Express Financial Advisors Inc. for distribution and shareholder servicing- related services as follows: Under the Distribution Agreement, the fund pays a distribution fee at an annual rate of 0.75% of the fund's average daily net assets attributable to Class B shares for distribution-related services. Under a Shareholder Service Agreement, the fund pays a fee for service provided to shareholders by financial advisors and other servicing agents. The fee is calculated at a rate of 0.175% of the fund's average daily net assets attributable to Class A and Class B shares. American Express Financial Corporation will assume and pay any expenses (except taxes and brokerage commissions) that exceed the most restrictive applicable state limitation. Sales charges by American Express Financial Advisors Inc. for distributing fund shares were $2,256,864 for Class A and $25 for Class B for the six months ended April 30, 1995. The fund also pays custodian fees to American Express Trust Company, an affiliate of American Express Financial Corporation. 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 $1,507 for the six months ended April 30, 1995. ______________________________________________________________________________ 3. Securities transactions Cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated $163,008,937 and $96,085,401, respectively, for the six months ended April 30, 1995. Realized gains and losses are determined on an identified cost basis. Brokerage commissions paid to brokers affiliated with American Express Financial Corporation was $75,130 for the six months ended April 30, 1995. PAGE 4. Foreign currency contracts At April 30, 1995, the fund had entered into seven foreign currency exchange contracts that obligate the fund to deliver currency at specified future dates. The net unrealized depreciation of $22,069 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 April 30, 1995 received April 30, 1995 ____________________________________________________________________________________________________ May 3, 1995 1,469,591 $1,469,591 2,029,050 $1,463,328 U.S. Dollar Deutsche Mark May 3, 1995 1,057,160 1,057,160 5,128,600 1,041,657 U.S. Dollar French Franc May 5, 1995 687,930 496,127 497,458 497,458 Deutsche Mark U.S. Dollar May 5, 1995 829,554 829,554 1,147,181 827,334 U.S. Dollar Deutsche Mark May 31, 1995 4,076 4,076 6,970,866 4,146 U.S. Dollar Italian Lira May 31, 1995 40,899 40,899 69,708,657 41,456 U.S. Dollar Italian Lira May 31, 1995 83,526 83,526 140,380,195 83,485 U.S. Dollar Italian Lira __________ __________ $3,980,933 $3,958,864
______________________________________________________________________________ PAGE 5. Lending of portfolio securities At April 30, 1995, securities valued at $34,243,314 were on loan to brokers. For collateral, the fund received $20,277,715 in cash and U.S. government securities valued at $16,284,284. Income from securities lending amounted to $89,643 for the six months ended April 30, 1995. The risks to the fund of securities lending are that the borrower may not provide additional collateral when required or return the securities when due. ______________________________________________________________________________ 6. Capital share transactions Transactions in shares of capital stock for the periods indicated are as follows: Six months ended April 30, 1995 Year ended 10/31/94 Class A Class B* Class Y* Class A ______________________________________________________________________________ Sold 24,172,493 543,847 3,441,106 72,265,905 Issued for reinvested distributions 1,583,805 -- -- 741,509 Redeemed (18,460,216) (902) (205,752) (15,415,895) ______________________________________________________________________________ Net increase 7,296,082 542,945 3,235,354 57,591,519 ______________________________________________________________________________ *Commencement of operations was March 20, 1995. ______________________________________________________________________________ 7. Stock index futures contracts Investments in securities at April 30, 1995, included securities valued at $12,150,000 that were pledged as collateral to cover initial margin deposits on 382 open purchase contracts. The market value of the open contracts at April 30, 1995, was $85,950 with a net unrealized gain of $96,300. ______________________________________________________________________________ 8. Capital loss carryover For federal income tax purposes, the fund has a capital loss carryover of approximately $341,000 at April 30, 1995, that will expire in 2003 if not offset by subsequent capital gains. PAGE
9. Financial highlights The table below shows certain important financial information for evaluating the fund's results. Fiscal period ended Oct. 31, Per share income and capital changes* 1995** 1994 1993 1992 1991 1990*** Classes A B Y Net asset value, $6.96 $5.87 $5.87 $6.30 $4.92 $5.03 $4.67 $5.00 beginning of period Income from investment operations: Net investment income .02 .01 .01 .04 .02 .04 .08 .04 Net gains (losses) (.63) .37 .37 .73 1.43 (.11) .36 (.37) (both realized and unrealized) Total from investment (.61) .38 .38 .77 1.45 (.07) .44 (.33) operations Less distributions: Dividends from net (.05) -- -- (.02) (.03) (.04) (.08) -- investment income Distributions from (.05) -- -- (.09) (.03) -- -- -- realized gains Excess distribution -- -- -- -- (.01) -- -- -- of realized gains Total distributions (.10) -- -- (.11) (.07) (.04) (.08) -- Net asset value, $6.25 $6.25 $6.25 $6.96 $6.30 $4.92 $5.03 $4.67 end of period Ratios/supplemental data 1995** 1994 1993 1992 1991 1990*** Classes A B Y Net assets, end of period $648 $3 $20 $670 $244 $69 $38 $21 (in millions) Ratio of expenses to 1.40%+ 2.14%+ 1.23%+ 1.38% 1.51% 1.72% 1.70% .81% average daily net assets Ratio of net income .91%+ 1.68%+ 2.58%+ .85% .80% 1.16% 1.66% 2.99%+ to average daily net assets Portfolio turnover rate 18% 18% 18% 26% 27% 41% 33% 20% (excluding short-term securities) Total return++ (8.7%)+++ 6.5% 6.5% 12.1% 29.9% (1.5%) 9.8% (6.7%)+++ *For a share outstanding throughout the period. Rounded to the nearest cent. **Six months ended April 30, 1995, for Class A and commencement of operations March 20, 1995, for Class B and Y (Unaudited). ***Commencement of operations. Period from May 29, 1990 to Oct. 31, 1990. PAGE +Adjusted to an annual basis. ++Total return does not reflect payment of a sales charge. +++For the fiscal periods ended Oct. 31, 1990 and April 30, 1995, the annualized total returns are (16.1%) and (16.7%), respectively.
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Investments in securities IDS Global Growth Fund (Percentages represent value of April 30, 1995 (Unaudited) investments compared to net assets) Investments in securities of unaffiliated issuers _____________________________________________________________________________________________________________________________ Common stocks (74.9%) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Argentina (5.5%) Banks and savings & loans (0.8%) Banco Frances ADR 300,000 $ 5,512,500 _____________________________________________________________________________________________________________________________ Beverages & tobacco (0.8%) Baesa ADR 200,000 5,500,000 _____________________________________________________________________________________________________________________________ Building materials & construction (0.9%) IRSA 262,500 (b) 6,168,750 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (2.1%) Commercial Del Plata 2,000,000 (c) 4,400,000 Comp Naviera Perez ADR 1,180,000 9,676,000 ____________ Total 14,076,000 _____________________________________________________________________________________________________________________________ Utilities-electric (0.9%) Capex GDR 400,000 (c) 5,826,000 _____________________________________________________________________________________________________________________________ Canada (2.8%) Energy (2.6%) Renaissance Energy 14,300 (b,c) 323,446 Renaissance Energy 385,700 (c) 8,723,994 Sceptre 1,100,000 (c) 7,990,070 ___________ Total 17,037,510 _____________________________________________________________________________________________________________________________ Utilities-gas (0.2%) Archer Resources 300,000 (c) 1,324,020 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities. PAGE Chile (2.6%) Banks and savings & loans (0.9%) Banco O'Higgins 325,000 (d) 5,931,250 _____________________________________________________________________________________________________________________________ Financial services (0.5%) GT Chile Growth Euro 100,000 3,350,000 _____________________________________________________________________________________________________________________________ Industrial equipment & services (1.2%) Madeco ADR 275,000 8,009,375 _____________________________________________________________________________________________________________________________ France (12.1%) Chemicals (1.9%) Air Liquide 80,000 12,836,320 _____________________________________________________________________________________________________________________________ Communications equipment (1.5%) Alcatel Cable 125,000 9,662,750 _____________________________________________________________________________________________________________________________ Computers & office equipment (1.6%) Sligos 125,000 10,790,000 _____________________________________________________________________________________________________________________________ Energy equipment & services (1.2%) Coflexip 275,000 (c) 8,297,266 _____________________________________________________________________________________________________________________________ Food (0.8%) IDIA 206,802 5,586,342 _____________________________________________________________________________________________________________________________ Industrial equipment & services (0.7%) CNIM 101,591 4,601,260 _____________________________________________________________________________________________________________________________ Industrial transportation (1.2%) SAGA 152,000 8,181,096 _____________________________________________________________________________________________________________________________ Retail (2.0%) Castorama Dubois 80,897 13,374,620 _____________________________________________________________________________________________________________________________ Utilities-electric (1.2%) Lyonnaise Des Eaux & De L'Eclairage 80,000 7,942,240 _____________________________________________________________________________________________________________________________ PAGE Germany (12.2%) Banks and savings & loans (1.7%) Bankgesellshchaft Berlin 50,000 11,502,950 _____________________________________________________________________________________________________________________________ Building materials & construction (0.9%) Weru 10,000 6,126,490 _____________________________________________________________________________________________________________________________ Industrial equipment & services (3.5%) Buderus 25,000 13,468,175 Jungheinrich 45,000 9,898,290 ____________ Total 23,366,465 _____________________________________________________________________________________________________________________________ Retail (4.4%) AVA 35,000 13,125,630 Douglas Holdings 40,000 14,351,640 Moebel Walther 5,000 2,483,118 ____________ Total 29,960,388 _____________________________________________________________________________________________________________________________ Utilities-electric (1.7%) Veba 30,000 11,163,990 _____________________________________________________________________________________________________________________________ Utilities-gas (--%) Henderson Investment 600,000 33,600 _____________________________________________________________________________________________________________________________ Hong Kong (5.5%) Building materials & construction (0.5%) Henderson Investment 4,508,000 3,200,680 _____________________________________________________________________________________________________________________________ Financial services (1.2%) First Pacific 10,128,824 8,305,636 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (2.2%) Hutchison Whampoa 2,500,000 10,850,000 Shun Tak Enterprise 7,000,000 4,249,000 ____________ Total 15,099,000 _____________________________________________________________________________________________________________________________ Utilities-telephone (1.6%) Hong Kong Telecom 5,396,200 (c,d) 10,560,363 _____________________________________________________________________________________________________________________________ India (1.3%) Miscellaneous Reliance Inds Euro GDR 525,000 (b) 8,465,625 _____________________________________________________________________________________________________________________________ PAGE Indonesia (3.5%) Food (1.4%) PT Indofood Sukses Makmur 2,700,000 (c) 9,549,900 _____________________________________________________________________________________________________________________________ Chemicals (1.0%) PT Tri Polyta ADR 300,000 (c) 6,450,000 _____________________________________________________________________________________________________________________________ Real estate (1.1%) PT Jaya Real Properties 3,000,000 7,389,000 _____________________________________________________________________________________________________________________________ Italy (1.1%) Furniture & appliances (1.1%) Natuzzi ADR 200,000 7,475,000 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (--%) Sasib S.P.A. 46,000 193,522 _____________________________________________________________________________________________________________________________ Japan (4.9%) Electronics (1.4%) Alpine Electronics 450,000 (d) 6,103,350 Chudenko 101,850 (c) 3,611,092 ____________ Total 9,714,442 _____________________________________________________________________________________________________________________________ Furniture & appliances (1.5%) Sony 200,000 10,089,200 _____________________________________________________________________________________________________________________________ Retail (2.0%) Canon Sales 200,000 5,282,400 York Benimaru 200,000 (d) 7,900,000 ____________ Total 13,182,400 _____________________________________________________________________________________________________________________________ Mexico (3.3%) Banks and savings & loans (0.6%) Grupo Finance Banamex 1,450,000 2,422,660 Grupo Financiero Banorte 975,000 (c) 1,270,718 ____________ Total 3,693,378 _____________________________________________________________________________________________________________________________ Beverages & tobacco (0.2%) Formento Economico 750,000 1,631,550 _____________________________________________________________________________________________________________________________ Building materials & construction (1.1%) Bufete Inds ADR 400,000 4,500,000 Grupo Mexicano de Desarrollo 600,000 (c) 3,075,000 ____________ Total 7,575,000 _____________________________________________________________________________________________________________________________ Metals (0.6%) Grupo Simec ADR 400,000 (c) 4,000,000 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (0.8%) Grupo Carso ADR 500,000 (c) 5,346,700 _____________________________________________________________________________________________________________________________ PAGE Netherlands (3.8%) Building materials & construction (2.6%) IHC Caland 250,000 6,827,250 Volker Stevin 177,400 10,740,328 _____________ Total 17,567,578 _____________________________________________________________________________________________________________________________ Industrial equipment & services (1.2%) Boskalis 572,000 (c,d) 7,810,088 _____________________________________________________________________________________________________________________________ Peru (0.4%) Banks and savings & loans Banco Wiese ADR 309,288 (d) 2,783,592 _____________________________________________________________________________________________________________________________ Phillipines (0.4%) Multi-industry conglomerates Universal Robina 5,000,000 2,780,000 _____________________________________________________________________________________________________________________________ Singapore/Malaysia (8.1%) Banks and savings & loans (3.9%) AMMB Holdings 1,000,000 (c) 9,872,000 Commerce Asset 1,250,000 5,461,250 Development Bank of Singapore 500,000 (c) 5,346,000 United Overseas Bank 519,375 5,404,097 ____________ Total 26,083,347 _____________________________________________________________________________________________________________________________ Electronics (1.3%) Technology Resource Cl A 3,500,000 (c) 8,921,500 _____________________________________________________________________________________________________________________________ Leisure time & entertainment (0.8%) Resorts World 1,000,000 5,259,000 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (1.2%) Keppel 1,000,000 8,109,000 _____________________________________________________________________________________________________________________________ Paper & packaging (0.9%) Asia Pulp & Paper 517,000 (c) 5,880,875 _____________________________________________________________________________________________________________________________ PAGE Sweden (0.4%) Retail Lindex (AB) 192,000 (c) 2,693,952 _____________________________________________________________________________________________________________________________ Switzerland (3.3%) Banks and savings & loans (1.2%) Swiss Bank 25,000 (c) 8,207,425 _____________________________________________________________________________________________________________________________ Industrial equipment & services (1.4%) Sulzer Gebruder 15,000 9,012,930 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (0.7%) BBC Brown Boveri 5,000 4,924,455 _____________________________________________________________________________________________________________________________ United Kingdom (0.9%) Electronics Electrocomponents 700,000 6,035,400 _____________________________________________________________________________________________________________________________ United States (2.8%) Building materials & construction (0.6%) Foamex Intl 500,000 (c) 4,062,500 _____________________________________________________________________________________________________________________________ Communications equipment (0.4%) Geotek Communications 300,000 (c) 2,737,500 _____________________________________________________________________________________________________________________________ Industrial equipment & services (0.9%) Calgon Carbon 500,000 (i) 6,125,000 _____________________________________________________________________________________________________________________________ Industrial transportation (0.9%) Fritz 100,000 (c,i) 6,025,000 _____________________________________________________________________________________________________________________________ Total common stocks of unaffiliated issuers (Cost: $525,427,723) $503,101,720 _____________________________________________________________________________________________________________________________
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_____________________________________________________________________________________________________________________________ Bonds (5.3%) _____________________________________________________________________________________________________________________________ Issuer and Principal Value(a) coupon rate Amount _____________________________________________________________________________________________________________________________ Malaysia (2.3%) Renong (U.S. Dollar) 2.50% Cv 2005 $15,000,000 (b) $ 15,187,500 _____________________________________________________________________________________________________________________________ Mexico (1.2%) Banco Nacional de Mexico (U.S. Dollar) 7% Cv 1999 5,000,000 (b) 3,350,000 Mexican Cetes (Mexican Peso) Zero Coupon 13.94% Treasury Bill 1995 30,710,040 (g) 4,937,775 ____________ Total 8,287,775 _____________________________________________________________________________________________________________________________ South Africa (1.0%) Liberty Life Inds Euro (U.S. Dollar) 6.50% 2004 6,000,000 (b,d) 6,930,000 _____________________________________________________________________________________________________________________________ Spain (0.8%) Banco de Galicia (U.S. Dollar) 7% Cv 2002 7,500,000 5,250,000 _____________________________________________________________________________________________________________________________ Total bonds (Cost: $33,011,980) $ 35,655,275 _____________________________________________________________________________________________________________________________ PAGE _____________________________________________________________________________________________________________________________ Preferred stocks & other (6.7%) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Argentina (1.2%) Cointel 7% 160,000 (h) $ 8,040,000 _____________________________________________________________________________________________________________________________ Germany (5.5%) Friedrich Grohe 36,650 12,079,217 Hornbach 12,500 14,973,675 SAP 10,000 9,880,280 _____________ Total 36,933,172 _____________________________________________________________________________________________________________________________ Total preferred stocks & other (Cost: $26,027,972) $ 44,973,172 _____________________________________________________________________________________________________________________________
Short-term securities (16.0%) _____________________________________________________________________________________________________________________________ Issuer Annualized Amount Value(a) yield on payable date of at purchase maturity _____________________________________________________________________________________________________________________________ U.S. government agency (1.0%) Federal Home Loan Mtge Corp Disc Notes 05-15-95 5.89% $3,600,000 $ 3,590,624 05-18-95 5.90 3,000,000 2,990,690 ____________ Total 6,581,314 _____________________________________________________________________________________________________________________________ Commercial paper (15.0%) AIG Funding 05-18-95 5.98 1,300,000 1,295,918 05-31-95 6.03 2,100,000 2,088,837 Amer General 05-22-95 6.00 5,300,000 (e) 5,279,785 05-26-95 6.00 4,400,000 (e) 4,380,299 AT&T Capital 05-23-95 6.02 2,500,000 2,490,050 BBV Finance 05-08-95 6.01 4,200,000 4,193,721 Cargill 05-26-95 5.98 2,700,000 2,687,951 05-26-95 5.99 3,100,000 3,086,166 Cargill Financial Markets 05-24-95 5.98 5,000,000 (e) 4,979,340 Commerzbank U.S. Finance 05-03-95 6.03 5,000,000 4,996,667 06-01-95 5.99 2,600,000 2,585,795 PAGE Deutsche Bank Finance 05-22-95 5.98 1,400,000 1,394,678 Dun & Bradstreet 06-01-95 6.15 800,000 794,322 Goldman Sachs 05-11-95 6.04 4,400,000 4,391,200 MetLife Funding 05-12-95 6.07 1,500,000 1,496,399 Natl Bank Detroit Canada 05-05-95 6.06 2,300,000 2,297,688 PACCAR Financial 05-02-95 6.01 4,000,000 3,998,007 Penney (JC) Funding 05-15-95 6.00 1,500,000 1,496,020 05-30-95 5.99 3,600,000 3,581,555 Pitney Bowes Credit 06-02-95 5.99 3,500,000 3,480,332 Reed Elsevier 05-16-95 6.01 5,500,000 (e) 5,484,494 Rohm & Haas Finance 05-22-95 6.00 2,300,000 2,291,227 St. Paul Companies 05-08-95 6.04 1,800,000 (e) 1,797,300 Sandoz 05-09-95 6.11 3,000,000 2,994,325 Siemens 05-12-95 6.00 3,800,000 3,791,808 Southwestern Bell Capital 05-04-95 6.05 2,300,000 2,298,077 05-23-95 6.06 2,800,000 (e) 2,788,009 Toyota Motor Credit 05-10-95 6.00 3,500,000 3,493,615 05-25-95 6.00 5,200,000 5,177,617 USAA Capital 05-19-95 6.01 3,200,000 3,189,387 USL Capital 05-15-95 6.03 6,400,000 6,382,962 ____________ Total 100,683,551 _____________________________________________________________________________________________________________________________ Total short-term securities (Cost: $107,267,883) $107,264,865 _____________________________________________________________________________________________________________________________ Total investments in securities of unaffiliated issuers (Cost: $691,735,558) $690,995,032 _____________________________________________________________________________________________________________________________ /TABLE PAGE
_____________________________________________________________________________________________________________________________ Investments in securities of affiliated issuer (f) _____________________________________________________________________________________________________________________________ Common stock (0.4%) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ United States Chemicals GNI Group 427,500 (c) $ 2,725,312 _____________________________________________________________________________________________________________________________ Total investments in securities of affiliated issuer (Cost: $2,820,478) $ 2,725,312 _____________________________________________________________________________________________________________________________ Total investments in securities (Cost: $694,556,036)(j) $693,720,344 _____________________________________________________________________________________________________________________________ PAGE ______________________________________________________________________________________________________________________________ Notes to investments in securities _____________________________________________________________________________________________________________________________ (a) Securities are valued by procedures described in Note 1 to the financial statements. Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in the currency indicated. (b) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the board of directors. (c) Presently non-income producing. (d) Security is partially or fully on loan. See Note 5 to the financial statements. (e) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." This security has been determined to be liquid under guidelines established by the board of directors. (f) Investments representing 5% or more of the outstanding voting securities of the issuer. (g) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition. (h) PRIDES - Preferred Redeemed Increased Dividend Equity Securities are structured as convertible preferred securities issued by a company. Investors receive an enhanced yield but based upon a specific formula, potential appreciation is limited. PRIDES pay dividends, have voting rights, are noncallable for three years and upon maturity, convert into shares of common stock. (i) Pledged as initial deposit on the following open stock index futures purchase contracts (see Note 7 to the financial statements): Type of security Contracts ______________________________________________________________ Nikkei 225 Stock Index, June 1995 382 ______________________________________________________________ (j) At April 30, 1995, the cost of securities for federal income tax purposes was approximately $694,104,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $72,485,000 Unrealized depreciation (72,869,000) ____________________________________________________________________________________________ Net unrealized depreciation $ (384,000) ____________________________________________________________________________________________ /TABLE PAGE IDS Global Growth Fund Directors and officers of the fund _____________________________________________________________________________ President and interested director William R. Pearce President of all funds in the IDS MUTUAL FUND GROUP. ______________________________________________________________________________ Independent directors Lynne V. Cheney Distinguished fellow, American Enterprise Institute for Public Policy Research. Robert F. Froehlke Former president of all funds in the IDS MUTUAL FUND GROUP. Heinz F. Hutter Former president and chief operating officer, Cargill, Inc. Anne P. Jones Attorney and telecommunications consultant. Donald M. Kendall Former chairman and chief executive officer, PepsiCo, Inc. Melvin R. Laird Senior counsellor for national and international affairs, The Reader's Digest Association, Inc. Lewis W. Lehr Former chairman and chief executive officer, Minnesota Mining and Manufacturing Company (3M). Edson W. Spencer Former chairman and chief executive officer, Honeywell, Inc. Wheelock Whitney Chairman, Whitney Management Company. C. Angus Wurtele Chairman of the board and chief executive officer, The Valspar Corporation. ________________________________________________________________________ Interested directors who are officers and/or employees of American Express Financial Corporation William H. Dudley Executive vice president, American Express Financial Corporation. David R. Hubers president and chief executive officer, American Express Financial Corporation. John R. Thomas Senior vice president, American Express Financial Corporation. ________________________________________________________________________ PAGE Officers who also are officers and/or employees of American Express Financial Corporation Peter J. Anderson Vice president of all funds in the IDS MUTUAL FUND GROUP. Melinda S. Urion Treasurer of all funds in the IDS MUTUAL FUND GROUP. _________________________________________________________________________ Other officer Leslie L. Ogg Vice president, general counsel and secretary of all funds in the IDS MUTUAL FUND GROUP. PAGE IDS mutual funds Cash equivalent investments These money market funds have three main goals: conservation of capital, constant liquidity and the highest possible current income consistent with these objectives. Very limited risk. IDS Cash Management Fund Invests in such money market securities as high quality commercial paper, bankers' acceptances, certificates of deposit (CDs) and other bank securities. (icon of) piggy bank IDS Tax-Free Money Fund Invests primarily in short-term bonds and notes issued by state and local governments to seek high current income exempt from federal income taxes. (icon of) shield with piggy bank enclosed Income investments The funds in this group invest their assets primarily in corporate bonds or government securities to seek interest income. Secondary objective is capital growth. Risk varies by bond quality. IDS Global Bond Fund Invests primarily in debt securities of U.S. and foreign issuers to seek high total return through income and growth of capital. (icon of) globe IDS Extra Income Fund Invests mainly in long-term, high-yielding corporate fixed income securities in the lower rated, higher risk bond categories to seek high current income. Secondary objective is capital growth. (icon of) cornucopia PAGE IDS Bond Fund Invests mainly in corporate bonds, at least 50% in the higher rated, lower risk bond categories, or the equivalent, and in government bonds. (icon of) greek column IDS Selective Fund Invests in high-quality corporate bonds and other highly rated debt instruments including government securities and short-term investments. Seeks current income and preservation of capital. (icon of) skyline IDS Federal Income Fund Invests primarily in securities issued or guaranteed as to the timely payment of principal and interest by the U.S. government, its agencies and instrumentalities. Seeks a high level of current income and safety of principal consistent with its type of investments. (icon of) federal building Tax-exempt income investments These funds provide tax-free income by investing in municipal bonds. The income is generally free from federal income tax. Risk varies by bond quality. IDS High Yield Tax-Exempt Fund Invests primarily in medium- and lower-quality municipal bonds and notes. Lower-quality securities generally involve greater risk of principal and income. (icon of) shield with basket of apples enclosed PAGE IDS State Tax-Exempt Funds (CA, MA, MI, MN, NY, OH) Invests primarily in high- and medium-grade municipal securities to provide income to residents of each respective state that is exempt from federal, state and local income taxes. (New York is the only state that is exempt at the local level.) (icon of) shield with U.S. enclosed IDS Tax-Exempt Bond Fund Invests mainly in bonds and notes of state or local government units, with at least 75% in the four highest-rated, lowest risk bond categories. (icon of) shield with Greek column IDS Insured Tax-Exempt Fund Invests primarily in municipal securities that are insured as to the timely payment of principal and interest. The insurance feature minimizes credit risk of the Fund but does not guarantee the market value of the fund's shares. (icon of) shield with eagle head Growth and income investments These funds focus on securities of medium to large, well-established companies that offer long-term growth of capital and reasonable income from dividends and interest. Moderate risk. IDS International Fund Invests primarily in common stocks of foreign companies that offer potential for superior growth. The Fund may invest up to 20% of its assets in the U.S. market. (icon of) three flags IDS Managed Retirement Fund Invests in a combination of common stocks, fixed-income investments and money market securities to seek a maximum total return through a combination of growth of capital and current income. (icon of) bird in a nest PAGE IDS Equity Select Fund Invests primarily in a combination of moderate growth stocks, higher-yielding equities and bonds. Seeks growth of capital and income. (icon of) three apple trees IDS Blue Chip Advantage Fund Invests in selected stocks from a major market index. Securities purchased are those recommended by our research analysts as the best from each industry represented on the index. Offers potential for long-term growth as well as dividend income. (icon of) ribbon IDS Stock Fund Invests in common stocks of companies representing many sectors of the economy. Seeks current income and growth of capital. (icon of) building with columns IDS Equity Value Fund Invests primarily in undervalued common stocks that offer potential for growth of capital and income. (icon of) chess piece IDS Utilities Income Fund Invests primarily in the stocks of public utility companies to seek high current income and growth of income and capital with reduced volatility. (icon of) electrical cord IDS Diversified Equity Income Fund Invests primarily in high-yielding common stocks to seek high current income and, secondarily, to benefit from the growth potential offered by stock investments. (icon of) four puzzle pieces IDS Mutual Invests in a balance between common stocks and senior securities (preferred stocks and bonds). Seeks a balance of growth of capital and current income. (icon of) scale of justice PAGE Growth investments Funds in this group seek capital growth, primarily from common stocks. They are high risk mutual funds with a potential for high reward. IDS Discovery Fund Invests in small- and medium-size, growth-oriented companies emphasizing technological innovation and productivity enhancement. Buys and holds larger growth-oriented stocks. (icon of) ship IDS Strategy Aggressive Fund Invests primarily in common stocks of companies that are selected for their potential for above-average growth. Above-average means that their growth potential is better, in the opinion of the portfolio's investment manager, than the Standard & Poor's Corporation (S&P) 500 Stock Index. (icon of) chess piece IDS Growth Fund Invests primarily in companies that have above-average potential for long-term growth as a result of new management, marketing opportunities or technological superiority. (icon of) flower IDS Global Growth Fund Invests in stocks of companies throughout the world that are positioned to meet market needs in a changing world economy. These companies offer above-average potential for long-term growth. (icon of) world IDS New Dimensions Fund Invests primarily in companies with significant growth potential due to superiority in technology, marketing or management. The Fund frequently changes its industry mix. (icon of) dimension IDS Progressive Fund Invests primarily in undervalued common stocks. The fund holds stocks for the long term with the goal of capital growth. (icon of) shooting star Specialty growth investment This fund aggressively seeks capital growth as a hedge against inflation. PAGE IDS Precious Metals Fund Invests primarily in the securities of foreign or domestic companies that explore for, mine and process or distribute gold and other precious metals. This is the most aggressive and most speculative IDS mutual fund. (icon of) cart of precious gems For more complete information about any of these funds, including charges and expenses, you can obtain a prospectus by contacting your financial advisor or writing to American Express Shareholder Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it carefully before you invest or send money. PAGE Quick telephone reference American Express Telephone Transaction Service Redemptions and exchanges, dividend payments or reinvestments and automatic payment arrangement National/Minnesota: 800-437-3133 Mpls./St. Paul area: 671-3800 American Express Shareholder Service Fund performance, objectives and account inquiries 612-671-3733 TTY Service For the hearing impaired 800-846-4852 American Express Infoline Automated account information (TouchTone phone only), including current fund prices and performance, account values and recent account transactions National/Minnesota: 800-272-4445 Mpls./St. Paul area: 671-1630 AMERICAN EXPRESS FINANCIAL ADVISORS IDS Global Growth Fund IDS Tower 10 Minneapolis, MN 55440-0010 -----END PRIVACY-ENHANCED MESSAGE-----