-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J4Gdn5gZWwda6QX2FOgYYvH+bJDMfXMRsm9k8EqSnY4VqEzvTxVApHvMauyaH2aw +p0csQkuO3GuKnArw32Rcg== 0000820027-96-000011.txt : 19960111 0000820027-96-000011.hdr.sgml : 19960111 ACCESSION NUMBER: 0000820027-96-000011 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951031 FILED AS OF DATE: 19960105 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: 96501346 BUSINESS ADDRESS: STREET 1: IDS TOWER 10 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6126712772 FORMER COMPANY: FORMER CONFORMED NAME: IDS GLOBAL BOND FUND INC DATE OF NAME CHANGE: 19901011 N-30D 1 IDS GLOBAL GROWTH FUND, INC. PAGE 1 IDS Global Growth Fund 1995 annual report (prospectus enclosed) (icon of) globe The goal of IDS Global 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. (This annual report includes a prospectus that describes in detail the Fund's objective, investment policies, risks, sales charges, fees and other matters of interest. Please read the prospectus carefully before you invest or send money.) Distributed by American Express Financial Advisors Inc. PAGE 2 (icon of) globe It's a big world after all No one needs to be told that the world is changing rapidly. For example, some years ago U.S. stocks accounted for about two-thirds of the total value of stocks worldwide. Today, that figure is down to about one-third, as many foreign stock markets have enjoyed explosive growth. Global Growth Fund seeks to take advantage of that trend by investing in companies throughout the world, not just the United States. For the most part, these are fast-growing foreign companies involved in essential businesses such as infrastructure creation, finance and environmental clean-up. As they prosper, Global Growth offers investors the potential to prosper along with them. PAGE 3 Contents (Icon of) One book inside of another and their both being opened together. The purpose of this annual report is to tell investors how the Fund performed. The prospectus, which is bound into the middle of this annual report, describes the Fund in detail. 1995 annual report From the president 4 From the portfolio manager 4 Ten largest holdings 6 Making the most of your Fund 7 Long-term performance 8 Independent auditors' report 9 Financial statements 10 Notes to financial statements 13 Investments in securities 22 IDS mutual funds 28 Federal income tax information 31 1995 prospectus The Fund in brief Goal 3p Types of Fund investments and their risks 3p Proposed conversion to master/feeder structure 3p Manager and distributor 4p Portfolio manager 4p Alternative purchase arrangements 4p Sales charge and Fund expenses 5p Performance Financial highlights 7p Total returns 9p Investment policies and risks 11p Facts about investments and their risks 12p Valuing Fund shares 15p How to buy, exchange or redeem shares Alternative purchase arrangements 16p How to purchase shares 18p How to exchange shares 21p How to redeem shares 21p Reductions and waivers of the sales charge 26p Special shareholder services Services 30p Quick telephone reference 30p Distributions and taxes Dividend and capital gain distributions 31p Reinvestments 32p Taxes 32p How to determine the correct TIN 34p How the fund is organized Shares 35p Voting rights 35p Shareholder meetings 35p Special considerations regarding master/feeder structure 36p Directors and officers 38p Investment manager and transfer agent 40p Distributor 41p About American Express Financial Corporation General information 44p Appendix Descriptions of derivative instruments 46p PAGE 4 To our shareholders (Photo of) William R. Pearce President of the Fund (Photo of) Richard Lazarchic Portfolio manager From the president If you're an experienced investor, you know that 1995 was an unusually strong year for the U.S. financial markets. Perhaps just as important, you also know that history shows that bull markets don't last forever. Though they're often unpredictable, declines-- whether they're brief or long-lasting, moderate or substantial--are always a possibility. That fact reinforces the need for investors to review periodically their long-term goals and assess whether their investment program remains on track to achieving them. Your quarterly investment statements are one part of that monitoring process. The other is a meeting with your American Express financial advisor. That becomes even more important if there's a major change in your financial situation or in the financial markets. Before closing, I want to introduce Richard Lazarchic, who became the new portfolio manager of this Fund last July. He joined the company in 1979, and also manages IDS Managed Retirement Fund and formerly managed IDS Utilities Fund and IDS Diversified Equity Income Fund. His review of the past period and his outlook follow. William R. Pearce From the portfolio manager With relatively few exceptions, foreign stock markets either lost ground or failed to advance during the past 12 months, extending a slump that began in early 1994. IDS Global Growth Fund's performance reflected this trend, as it incurred a loss for its November 1994 through October 1995 fiscal year. The period got off to a stumbling start, as fears of higher interest rates began driving down stocks in many smaller markets. On the heels of that, Mexico devalued its peso in December 1994, which sent Mexican stocks into a tailspin that soon spread to other Latin American markets and even to 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. Spring surge It wasn't until spring that the smaller markets were able to right themselves. Supported by appreciating local currencies, markets in Latin America and Southeast Asia began moving forward with nearly as much vigor as they previously retreated. By that time, the U.S. market, to which we had increased our exposure, was also enjoying a strong rally. As a result, the Fund enjoyed a strong, though temporary, rebound. From that point, however, most foreign markets did well just to hold their ground, as the runaway bull market in the U.S. kept attracting the great bulk of investors' capital. The situation was compounded by a strengthening U.S. dollar during the summer and fall--a factor that reduces returns for Americans who invest outside U.S. borders. (Conversely, a weaker dollar enhances returns from foreign stocks.) Diversification provides cushion While it was impossible to avoid the impact of these events, the Fund's decline was tempered somewhat by our well-diversified portfolio. A good example was our substantial exposure to European markets, particularly Germany and France. These markets performed better than several others, and we also benefitted at times from appreciating local currencies (the German mark and French franc). Among other major markets, our holdings in Japan were largely poor performers, as that country continued to suffer from an unresponsive economy. Concurrent with a change in portfolio managers last July, this Fund has undergone a moderate repositioning--the most notable example being a reduction of holdings in Germany, France and Japan and an increase in Scandinavia, Latin America (excluding Mexico) and Southeast Asia. This shift is based on our desire to emphasize investments in countries that are experiencing the greatest economic growth. We also have been extending the growth theme to our stock selection by focusing mainly on companies with above-average profit potential. Recently, that has often led us to consumer-product companies, particularly those in the food, beverage, retailing and personal- care industries. While we can't predict that positive performance will be immediate, we do expect selected foreign markets to fare better in the year ahead. Such an upturn wouldn't eliminate market volatility, of course, but we think it could signal a return to the profitable long-term results foreign markets have generated in years past. Richard Lazarchic PAGE 5 Class A 12-month performance (All figures per share) Net asset value (NAV) Oct. 31, 1995 $ 6.37 Oct. 31, 1994 $ 6.96 Decrease $ (0.59) Distributions Nov. 1, 1994 - Oct. 31, 1995 From income $ 0.05 From capital gains $ 0.05 Total distributions $ 0.10 Total return** (7.0)%*** Class B March 20, 1995 - Oct. 31, 1995 (All figures per share) Net asset value (NAV) Oct. 31, 1995 $ 6.34 March 20, 1995* $ 5.82 Increase $ 0.52 Distributions March 20, 1995* - Oct. 31, 1995 From income $ -- From capital gains $ -- Total distributions $ -- Total return** +8.9%*** Class Y March 20, 1995 - Oct. 31, 1995 (All figures per share) Net asset value (NAV) Oct. 31, 1995 $ 6.38 March 20, 1995* $ 5.82 Increase $ 0.56 Distributions March 20, 1995* - Oct. 31, 1995 From income $ -- From capital gains $ -- Total distributions $ -- Total return** +9.6%*** *Inception date. **The prospectus discusses the effect of sales charges, if any, on the various classes. ***The total return is a hypothetical investment in the Fund with all distributions reinvested. PAGE 6
IDS Global Growth Fund Your Fund's ten largest holdings The ten holdings listed here make up 15.37% of the Fund's net assets Percent Value (of Fund's net assets) (as of Oct. 31, 1995) Renong (Malaysia) 1.69% $11,875,000 2.50% Cv Bond 2005 Engaged in the engineering, construction and operation of major infrastruction projects in Malaysia. Bankgesellshchaft Berlin (Germany) 1.67 11,792,280 Dominant mortgage bank in Berlin area. First Pacific (Hong Kong) 1.63 11,510,000 An investment and management company. Through its subsidiaries, the company is engaged in marketing and distribution, integrated property services, telecommunication and banking. Volker Stevin (Netherlands) 1.62 11,412,852 A market leader in road construction, traffic control systems and pipelines, Volker Stevin will benefit more than other construction companies from the expected upturn in Dutch infrastructure. Castorama Dubois (France) 1.62 11,378,430 A fast growing "do-it-yourself" retailer in France (currently expanding into Italy). Bre-X Minerals (Canada) 1.60 11,277,917 This company, directly and through joint ventures, is engaged in the acquisition, exploration and development of mining properties. Hutchinson Whampoa (Hong Kong) 1.57 11,018,000 A highly diversified company based in Hong Kong, positioned to benefit from the above-average growth of the Pacific Basin region. Mannesmann (Germany) 1.40 9,873,540 This company's operations are divided into six business segments: machinery and plant construction, automotive technology, elelctrical engineering, telecommunications, tubes and pipes, and trading. Jungheinrich (Germany) 1.31 9,199,400 A German manufacturer of forklifts and industrial trucks. Renaissance Energy (Germany) 1.26 8,844,932 This company is engaged in the acquisition of petroleum and natural gas rights and the exploration, development and production of oil and natural gas. 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 7 Making the most of your fund Average annual total return (as of Oct. 31, 1995) Class A 1 year 5 year Since inception* - -11.65% +6.83% +4.93% *May 29, 1990 Total returns for Class A, Class B and Class Y for the period from March 20, 1995 to Oct. 31, 1995 were +4.10%, +4.04% and +9.66%, respectively. March 20, 1995 was the inception date for Class B and Class Y. Total return for Class A is shown for comparative purposes. The performance of Class B and Class Y will vary from the performance of Class A based on differences in sales charges and fees. Your investment and return values fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. Figures for Class A and Class B reflect the effect of the maximum 5% sales charge. This was a period of widely fluctuating security prices. Past performance is no guarantee of future results. Build your assets systematically One of the best ways to invest in the Fund is by dollar-cost averaging--a time-tested strategy that can make market fluctuations work for you. To dollar-cost average, simply invest a fixed amount of money regularly. You'll automatically buy more shares when the Fund's share price is low, fewer shares when it is high. This does not ensure a profit or avoid a loss if the market declines. But, if you can continue to invest regularly through changing market conditions, it can be an effective way to accumulate shares to meet your long-term goals. How dollar-cost averaging works Month Amount Per-share Number of shares purchased invested market price Jan $100 $20 5.00 Feb 100 18 5.56 Mar 100 17 5.88 Apr 100 15 6.67 May 100 16 6.25 June 100 18 5.56 July 100 17 5.88 Aug 100 19 5.26 Sept 100 21 4.76 Oct 100 20 5.00 (footnotes to table) By investing an equal number of dollars each month... (arrow in table pointing to April) you automatically buy more shares when the per share market price is low (arrow in table pointing to September) and fewer shares when the per share market price is high. You have paid an average price of only $17.91 per share over the 10 months, while the average market price actually was $18.10. PAGE 8 Your Fund's long-term performance Three ways to benefit from a mutual fund: o your shares increase in value when the Fund's investments do well o you receive capital gains when the gains on investments sold by the Fund exceed losses o you receive income when the Fund's stock dividends, interest and short-term gains exceed its expenses. All three make up your total return. And you potentially can increase your investment if, like most investors, you reinvest your dividends and capital gain distributions to buy additional shares of the Fund or another fund. Class A* How your $10,000 has grown in IDS Global Growth Fund Average annual total return (as of Oct. 31, 1995) 1 year 5 years Since 5/29/90 - -11.65% +6.83% +4.93% Lipper International Fund Index $12,985 Global Growth Fund EAFE Index $9,500 6/1/90 '90 '91 '92 '93 '94 '95 *The graph above is for Class A only. Class B and Class Y are not shown. Total returns for Class A, Class B and class Y for the period from March 20, 1995 to Oct. 31, 1995 were +4.10%, +4.04% and +9.66%, respectively. March 20, 1995 was the inception date for Class B and Class Y. Total return for Class A is shown for comparative purposes. The performance of Class B and Class Y will vary from the performance of Class A based on differences in sales charges and fees. Assumes: o Holding period from 6/01/90 to 10/31/95. o Returns do not reflect taxes payable on distributions. o Also see "Performance" in the fund's current prospectus. o Reinvestment of all income and capital gain distributions for the Fund, with a value of $880. Also see "Performance" in the Fund's current prospectus. The Morgan Stanley Capital International EAFE Index (EAFE Index), compiled from a composite of securities markets of Europe, Australia and the Far East, is widely recognized by investors in foreign markets as the measurement index for portfolios of non- North American securities. Lipper International Fund Index, published by Lipper Analytical Services, Inc., includes 10 funds that are generally similar to the Fund, although some funds in the index may have somewhat different investment policies or objectives. On the graph above you can see how the Fund's total return compared to two widely cited performance indexes, the EAFE and the Lipper International Fund Index. In comparing Global Growth Fund to the two indexes, you should take into account the fact that the Fund's performance reflects the maximum sales charge of 5%, while such charges are not reflected in the performance of the indexes. If you were actually to buy either individual stocks or growth mutual funds, any sales charges that you pay would reduce your total return as well. Your investment and return values fluctuate so that your shares, when redeemed, may be worth more or less than the original cost. This was a period of widely fluctuating security prices. Past performance is no guarantee of future results. PAGE 9 Independent auditors' report The board of directors and shareholders IDS Global Series, Inc.: We have audited the accompanying statement of assets and liabilities, including the schedule of investments in securities, of IDS Global Growth Fund (a series of IDS Global Series, Inc.) as of October 31, 1995, and the related statement of operations for the year then ended and the statements of changes in net assets for each of the years in the two-year period ended October 31, 1995, and the financial highlights for each of the years in the five-year period ended October 31, 1995, and for the period from May 29, 1990 (commencement of operations), to October 31, 1990. These financial statements and the financial highlights are the responsibility of fund management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Investment securities held in custody are confirmed to us by the custodian. As to securities purchased and sold but not received or delivered, and securities on loan, we request confirmations from brokers, and where replies are not received, we carry out other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of IDS Global Growth Fund at October 31, 1995, and the results of its operations for the year then ended and the changes in its net assets for each of the years in the two-year period ended October 31, 1995, and the financial highlights for the periods stated in the first paragraph above, in conformity with generally accepted accounting principles. KPMG Peat Marwick LLP Minneapolis, Minnesota December 1, 1995 PAGE 10
Financial statements Statement of assets and liabilities IDS Global Growth Fund Oct. 31, 1995 _____________________________________________________________________________________________________________ Assets _____________________________________________________________________________________________________________ Investments in securities, at value (Note 1): Investments in securities of unaffiliated issuers (identified cost $690,959,451) $696,341,698 Investments in securities of affiliated issuers (identified cost $2,977,041) 3,150,000 Cash in bank on demand deposit 6,089,504 Dividends and accrued interest receivable 2,069,458 Receivable for investment securities sold 18,263,210 Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 4) 7,620 U.S. government securities held as collateral (Note 5) 9,574,741 _____________________________________________________________________________________________________________ Total assets 735,496,231 _____________________________________________________________________________________________________________ Liabilities _____________________________________________________________________________________________________________ Payable for investment securities purchased 10,994,212 Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 4) 3,848,703 Payable upon return of securities loaned (Note 5) 16,671,706 Accrued investment management services fee 59,641 Accrued distribution fee 1,699 Accrued service fee 12,972 Accrued transfer agency fee 17,746 Accrued administrative services fee 4,250 Other accrued expenses 121,766 _____________________________________________________________________________________________________________ Total liabilities 31,732,695 _____________________________________________________________________________________________________________ Net assets applicable to outstanding capital stock $703,763,536 _____________________________________________________________________________________________________________ Represented by _____________________________________________________________________________________________________________ Capital stock -- $.01 par value (Note 1) $ 1,104,822 Additional paid-in capital 679,888,008 Undistributed net investment income 17,412,089 Accumulated net realized gain (Note 1) 4,067,152 Unrealized appreciation of investments and on translation of assets and liabilities in foreign currencies (Notes 4 and 7) 1,291,465 _____________________________________________________________________________________________________________ Total -- representing net assets applicable to outstanding capital stock $703,763,536 _____________________________________________________________________________________________________________ Net assets applicable to outstanding shares: Class A $659,071,729 Class B $ 21,191,733 Class Y $ 23,500,074 Net asset value per share of outstanding capital stock: Class A shares 103,455,734 $ 6.37 Class B shares 3,341,575 $ 6.34 Class Y shares 3,684,897 $ 6.38 See accompanying notes to financial statements. PAGE 11 Financial statements Statement of operations IDS Global Growth Fund Year ended Oct. 31, 1995 _____________________________________________________________________________________________________________ Investment income _____________________________________________________________________________________________________________ Income: Dividends (net of foreign taxes withheld of $716,243) $10,512,509 Interest 9,736,833 _____________________________________________________________________________________________________________ Total income 20,249,342 _____________________________________________________________________________________________________________ Expenses (Note 2): Investment management services fee 5,454,220 Distribution fee Class A 243,536 Class B 45,989 Transfer agency fee 1,642,098 Incremental transfer agency fee - Class B 1,594 Service fee Class A 728,112 Class B 10,693 Administrative services fee 241,709 Compensation of directors 10,872 Compensation of officers 6,699 Custodian fees 636,223 Postage 135,965 Registration fees 107,971 Reports to shareholders 99,260 Audit fees 23,000 Administrative 10,143 Other 18,016 _____________________________________________________________________________________________________________ Total expenses 9,416,100 Earnings credits on cash balances (Note 2) (12,539) _____________________________________________________________________________________________________________ Total net expenses 9,403,561 _____________________________________________________________________________________________________________ Investment income -- net 10,845,781 _____________________________________________________________________________________________________________ Realized and unrealized gain (loss) -- net _____________________________________________________________________________________________________________ Net realized gain on security and foreign currency transactions (including loss of $29,612 from foreign currency transactions)(Note 3) 279,261 Net realized gain on stock index futures contracts 1,758,122 _____________________________________________________________________________________________________________ Net realized gain on investments and foreign currency 2,037,383 Net change in unrealized appreciation or depreciation of investments and on translation of assets and liabilities in foreign currencies (59,607,264) _____________________________________________________________________________________________________________ Net loss on investments and foreign currency (57,569,881) _____________________________________________________________________________________________________________ Net decrease in net assets resulting from operations $(46,724,100) _____________________________________________________________________________________________________________ See accompanying notes to financial statements. /TABLE PAGE 12
Financial statements Statements of changes in net assets IDS Global Growth Fund Year ended Oct. 31, _____________________________________________________________________________________________________________ Operations and distributions 1995 1994 _____________________________________________________________________________________________________________ Investment income -- net $ 10,845,781 $ 4,023,830 Net realized gains on investments and foreign currency 2,037,383 5,188,698 Net change in unrealized appreciation or depreciation of investments and on translation of assets and liabilities in foreign currencies (59,607,264) 33,656,723 _____________________________________________________________________________________________________________ Net increase (decrease) in net assets resulting from operations (46,724,100) 42,869,251 _____________________________________________________________________________________________________________ Distributions to shareholders from: Net investment income Class A (4,548,940) (1,094,030) Net realized gains Class A (5,265,856) (3,909,791) _____________________________________________________________________________________________________________ Total distributions (9,814,796) (5,003,821) _____________________________________________________________________________________________________________ Capital share transactions (Note 6) _____________________________________________________________________________________________________________ Proceeds from sales Class A shares (Note 2) 349,901,545 487,713,822 Class B shares 22,236,244 -- Class Y shares 28,305,289 -- Reinvestment of distributions at net asset value Class A shares 9,752,256 4,980,642 Payments for redemptions Class A shares (312,991,564) (104,574,827) Class B shares (Note 2) (557,491) -- Class Y shares (6,322,878) -- _____________________________________________________________________________________________________________ Increase in net assets from capital share transactions 90,323,401 388,119,637 _____________________________________________________________________________________________________________ Total increase in net assets 33,784,505 425,985,067 Net assets at beginning of year 669,979,031 243,993,964 _____________________________________________________________________________________________________________ Net assets at end of year (including undistributed net investment income of $17,412,089 and $3,950,178) $703,763,536 $669,979,031 _____________________________________________________________________________________________________________ See accompanying notes to financial statements.
PAGE 13 Notes to financial statements IDS Global Growth Fund ___________________________________________________________________ 1. Summary of significant accounting policies IDS Global Growth Fund is a series of IDS Global Series, Inc. and is registered under the Investment Company Act of 1940 (as amended) as a diversified, open-end management investment company. IDS Global Series, Inc. has 10 billion authorized shares of capital stock 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. Class B 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) differs among classes. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. Significant accounting policies followed by the Fund are summarized below: 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. Option transactions In order to produce incremental earnings, protect gains and facilitate buying and selling of securities for investment purposes, the Fund may buy or write options traded on any U.S. or foreign exchange or in the over-the-counter market where the completion of the obligation is dependent upon the credit standing of the other party. The Fund also may buy and sell put and call options and write covered call options on portfolio securities and may write cash-secured put options. The risk in writing a call option is that the Fund gives up the opportunity of profit if the PAGE 14 market price of the security increases. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. Option contracts are valued daily at the closing prices on their primary exchanges and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option or the cost of a security for a purchased put or call option is adjusted by the amount of premium received or paid. Futures transactions In order to gain exposure to or protect itself from changes in the market, the Fund may buy and sell futures contracts traded on any U.S. or foreign exchange. The Fund also may buy or write put and call options on these futures contracts. Risks of entering into futures contracts and related options include the possibility that there may be an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities. Upon entering into a futures contract, the Fund is required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The Fund recognizes a realized gain or loss when the contract is closed or expires. 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 PAGE 15 using foreign currency exchange rates from an independent pricing service. The Fund is subject to the credit risk that the other party will not complete the obligations of the contract. Federal taxes Since the Fund's policy is to comply with all sections of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders, no provision for income or excise taxes is required. Net investment income (loss) and net realized gains (losses) may differ for financial statement and tax purposes primarily because of the deferral of losses on certain futures contracts, the recognition of certain foreign currency gains (losses) as ordinary income (loss) for tax purposes and losses deferred due to "wash sale" transactions. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Fund. On the statement of assets and liabilities, as a result of permanent book-to-tax differences, undistributed net investment income has been increased by $7,165,070 and accumulated net realized gain has been increased by $2,029,852, resulting in a net classification adjustment to decrease additional paid-in capital by $9,194,922. 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 AEFC 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. PAGE 16 Also under terms of a prior agreement, the Fund paid AEFC 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. Effective March 20, 1995, when the Fund began offering multiple classes of shares, the Fund entered into agreements with AEFC for managing its portfolio, providing administrative services and serving as transfer agent as follows: Under its Investment Management Services Agreement, AEFC determines which securities will be purchased, held or sold. The management fee is a percentage of the Fund's average daily net assets in reducing percentages from 0.8% to 0.675% annually. Under an Administrative Services Agreement, the Fund pays AEFC for administration and accounting services at a percentage of the Fund's average daily net assets in reducing percentages from 0.06% to 0.035% annually. Under a separate Transfer Agency Agreement, AEFC maintains shareholder accounts and records. The Fund pays AEFC an annual fee per shareholder account for this service as follows: o Class A $15 o Class B $16 o Class Y $15 Also effective March 20, 1995, the Fund entered into agreements with American Express Financial Advisors Inc. for distribution and shareholder servicing-related services as follows: Under a Plan and Agreement of Distribution, the Fund pays a distribution fee at an annual rate of 0.75% of the Fund's average daily net assets attributable to Class B shares for distribution-related services. Under a Shareholder Service Agreement, the Fund pays a fee for service provided to shareholders by financial advisors and other servicing agents. The fee is calculated at a rate of 0.175% of the Fund's average daily net assets attributable to Class A and Class B shares. AEFC will assume and pay any expenses (except taxes and brokerage commissions) that exceed the most restrictive applicable state expense limitation. Sales charges received by American Express Financial Advisors Inc. for distributing Fund shares were $3,610,407 for Class A and $2,332 for Class B for the year ended Oct. 31, 1995. The Fund also pays custodian fees to American Express Trust Company, an affiliate of AEFC. During the year ended Oct. 31, 1995, the Fund's custodian and tranfer agency fees were reduced by $12,539 as a result of earnings credits from overnight cash balances. 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, PAGE 17 but the Fund recognizes the cost of payments during the time the directors serve on the board. The retirement plan expense amounted to $4,487 for the year ended Oct. 31, 1995. ___________________________________________________________________ 3. Securities transactions Cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated $541,555,602 and $519,467,757, respectively, for the year ended Oct. 31, 1995. Realized gains and losses are determined on an identified cost basis. Brokerage commissions paid to brokers affiliated with AEFC were $6,922 for the year ended Oct. 31, 1995. 4. Foreign currency contracts At Oct. 31, 1995, the Fund had entered into 12 foreign currency exchange contracts that obligate the Fund to deliver currency at specified future dates. The unrealized appreciation and/or depreciation on these contracts is included in the accompanying financial statements. The terms of the open contracts are as follows:
Exchange date Currency to be Currency to be Unrealized Unrealized delivered received appreciation depreciation _____________________________________________________________________________________________ Nov. 1, 1995 2,476,677 1,760,329 $ 951 $ -- Deutsche Mark U.S. Dollar Nov. 2, 1995 224,421,230 98,866 46 -- Indonesian Rupee U.S. Dollar Nov. 2, 1992 388,830 276,315 98 -- Deutsche Mark U.S. Dollar Nov. 2, 1995 261,214 185,669 108 -- Deutsche Mark U.S. Dollar Nov. 2, 1995 1,148,070 815,369 -- 195 Deutsche Mark U.S. Dollar Nov. 3, 1995 61,814 43,894 -- 17 Deutsche Mark U.S. Dollar Nov. 6, 1995 16,656,085 11,838,434 6,307 -- Deutsche Mark U.S. Dollar Nov. 7, 1995 7,838,854 1,604,022 -- 2,795 French Franc U.S. Dollar Nov. 7, 1995 575,046 408,611 110 -- Deutsche Mark U.S. Dollar Nov. 29, 1995 20,000,000 13,691,222 -- 534,643 Deutsche Mark U.S. Dollar Nov. 29, 1995 60,000,000 41,016,666 -- 1,660,926 Deutsche Mark U.S. Dollar Nov. 29, 1995 60,000,000 41,027,464 -- 1,650,127 Deutsche Mark U.S. Dollar _________ ___________ $7,620 $3,848,703 _____________________________________________________________________________ /TABLE PAGE 18 5. Lending of portfolio securities At Oct. 31, 1995, securities valued at $16,392,508 were on loan to brokers. For collateral, the Fund received $7,096,965 in cash and U.S. government securities valued at $9,574,741. Income from securities lending amounted to $188,915 for the year ended Oct. 31, 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 years indicated are as follows:
Year ended Oct. 31, 1995 Year ended 10/31/94 Class A Class B* Class Y* Class A ______________________________________________________________________________ Sold 54,746,186 3,426,130 4,666,904 72,265,905 Issued for reinvested 1,583,930 -- -- 741,509 distributions Redeemed (49,171,839) (84,555) (982,007) (15,415,895) ______________________________________________________________________________ Net increase 7,158,277 3,341,575 3,684,897 57,591,519 ______________________________________________________________________________ *Inception date was March 20, 1995.
___________________________________________________________________ 7. Stock index futures contracts Investments in securities at Oct. 31, 1995, included securities valued at $8,092,500 that were pledged as collateral to cover initial margin deposits on 799 open purchase contracts. The market value of the open contracts at Oct. 31, 1995, was $60,866,302 with a net unrealized loss of $476,573. ___________________________________________________________________ 8. Financial highlights "Financial highlights" showing per share data and selected information is presented on pages 5 and 6 of the prospectus. PAGE 19
Investments in securities IDS Global Growth Fund (Percentages represent value of Oct. 31, 1995 investments compared to net assets) Investments in securities of unaffiliated issuers _____________________________________________________________________________________________________________________________ Common stocks (67.3%) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Argentina (2.8%) Building materials & construction (0.8%) IRSA 262,500 $ 5,512,500 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (1.3%) Comp Naviera Perez ADR 1,000,000 (d) 8,820,000 _____________________________________________________________________________________________________________________________ Utilities-electric (0.7%) Capex GDR 400,000 (d) 4,950,000 _____________________________________________________________________________________________________________________________ Australia (0.9%) Airlines (0.6%) Qantas Airways 256,500 (b) 4,533,021 _____________________________________________________________________________________________________________________________ Metals (0.3%) Golden Shamrock 4,000,000 (c) 2,192,000 _____________________________________________________________________________________________________________________________ Bahamas (0.8%) Industrial transportation Teekay Shipping 250,000 5,812,500 _____________________________________________________________________________________________________________________________ Bermuda (0.5%) Media Comcast 275,000 (c) 3,540,625 ______________________________________________________________________________________________________________________________ Brazil (0.7%) Retail Lojas Arapua ADR 486,000 (b,c) 4,598,492 ______________________________________________________________________________________________________________________________ Canada (3.5%) Energy (1.3%) Renaissance Energy 400,000 (b,c) 8,844,932 _____________________________________________________________________________________________________________________________ Metals (2.2%) Bre-X Minerals 318,100 (c) 11,277,917 Prime Resources 600,000 (c) 4,366,482 _____________ Total 15,644,399 _____________________________________________________________________________________________________________________________ See accompanying notes to investments in securities. PAGE 20 Chile (3.5%) Banks and savings & loans (1.3%) Banco O'Higgins 270,000 5,771,250 Banco Osorno ADR 225,000 3,037,500 _____________ Total 8,808,750 _____________________________________________________________________________________________________________________________ Building materials (0.2%) New World Infrastructure 720,000 (c) 1,266,480 ______________________________________________________________________________________________________________________________ Industrial equipment & services (0.9%) Madeco ADR 250,000 6,218,750 _____________________________________________________________________________________________________________________________ Retail (0.6%) Santa Isabel 200,000 (b) 4,525,000 ______________________________________________________________________________________________________________________________ Utilities-telephone (0.5%) Telefonos de Chile ADR 53,600 3,859,200 ______________________________________________________________________________________________________________________________ France (6.5%) Computers & office equipment (1.2%) Sligos 100,000 8,670,600 _____________________________________________________________________________________________________________________________ Electronics (0.9%) SGS-Thomson Microele 135,000 (c) 6,108,750 ______________________________________________________________________________________________________________________________ Industrial equipment & services (0.4%) CNIM 72,700 2,533,304 _____________________________________________________________________________________________________________________________ Industrial transportation (0.7%) SAGA 150,000 4,996,350 _____________________________________________________________________________________________________________________________ Metals (0.6%) Usinor Sacilor 300,000 (c) 4,488,900 _____________________________________________________________________________________________________________________________ Retail (1.6%) Castorama Dubois 70,000 11,378,430 _____________________________________________________________________________________________________________________________ Utilities-electric (1.1%) Lyonnaise Des Eaux & De L'Eclairage 82,017 8,019,212 _____________________________________________________________________________________________________________________________ Germany (4.8%) Banks and savings & loans (2.6%) Bankgesellshchaft Berlin 40,000 11,792,280 Commerzbank 27,000 (d) 6,248,907 _____________ Total 18,041,187 _____________________________________________________________________________________________________________________________ Industrial equipment & services (1.4%) Mannesmann 30,000 9,873,540 _____________________________________________________________________________________________________________________________ Metals (0.8%) SGL Carbon 85,000 (b) 5,573,195 _____________________________________________________________________________________________________________________________ Hong Kong (4.2%) Financial services (1.6%) First Pacific 10,000,000 11,510,000 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (1.6%) Hutchison Whampoa 2,000,000 11,018,000 _____________________________________________________________________________________________________________________________ Utilities-electric (1.0%) Consolidated Electric Power 3,500,000 7,084,000 _____________________________________________________________________________________________________________________________ Indonesia (2.2%) Banks and savings & loans (0.5%) Lippo Bank Foreign 1,650,000 3,342,140 ______________________________________________________________________________________________________________________________ Chemicals (0.6%) PT Tri Polyta ADR 250,000 3,875,000 _____________________________________________________________________________________________________________________________ Industrial equipment & services (0.1%) PT Komatsu 704,000 619,991 ______________________________________________________________________________________________________________________________ Real estate (1.0%) PT Jaya Real Properties 2,435,000 6,942,185 _____________________________________________________________________________________________________________________________ Italy (1.3%) Multi-industry conglomerates (0.6%) PAGE 21 Sasib 1,000,000 4,432,000 _____________________________________________________________________________________________________________________________ Utilities-telephone (0.7%) Stet 1,800,000 5,101,200 ______________________________________________________________________________________________________________________________ Japan (7.9%) Building materials (0.6%) Nishimatsu Construction 400,000 4,500,400 _____________________________________________________________________________________________________________________________ Electronics (2.3%) Mitsubishi Electric 700,000 5,231,800 Rohm 100,000 6,075,700 TDK 100,000 5,156,000 ____________ Total 16,463,500 _____________________________________________________________________________________________________________________________ Industrial equipment & services (1.6%) Mitsubishi Heavy Inds 800,000 6,175,200 Secom 80,000 5,212,720 _____________ Total 11,387,920 _____________________________________________________________________________________________________________________________ Retail (1.8%) Familymart 150,000 6,325,200 York-Benimaru 200,000 6,339,800 ____________ Total 12,665,000 _____________________________________________________________________________________________________________________________ Utilities-electric (1.6%) Oki Electric 650,000 (c,d) 6,022,250 Sumitomo Electric 475,000 5,483,400 _____________ Total 11,505,650 _____________________________________________________________________________________________________________________________ Mexico (3.3%) Banks and savings & loans (0.5%) Grupo Finance Banamex Series B 1,450,000 2,482,806 Grupo Finance Banamex Series L 72,500 119,052 Grupo Financiero Banorte Series B 975,000 (c) 998,946 ____________ Total 3,600,804 _____________________________________________________________________________________________________________________________ Building materials & construction (2.1%) Bufete Inds ADR 500,000 (c) 6,687,500 Empresas ICA Sociedad Controladora 500,000 (d) 4,750,000 Tolmex Series B 900,000 3,378,942 ____________ Total 14,816,442 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (0.7%) Grupo Carso ADR 500,000 (c) 5,235,085 _____________________________________________________________________________________________________________________________ Netherlands (3.5%) Building materials & construction (2.4%) IHC Caland 200,000 5,691,800 Volker Stevin 177,400 11,412,852 _____________ Total 17,104,652 _____________________________________________________________________________________________________________________________ Energy equipment & services (0.9%) Schlumberger 100,000 6,225,000 _____________________________________________________________________________________________________________________________ Textiles & apparel (0.2%) Gucci 52,400 (c,d) 1,572,000 _____________________________________________________________________________________________________________________________ Norway (0.1%) Banks and savings & loans Fokus Bank 145,000 (c) 768,355 _____________________________________________________________________________________________________________________________ Peru (0.6%) Banks and savings & loans Banco Wiese ADR 600,000 3,975,000 _____________________________________________________________________________________________________________________________ Phillipines (2.4%) Financial services (0.8%) Filinvest Development 6,000,000 (b) 5,304,000 _____________________________________________________________________________________________________________________________ Paper & packaging (1.6%) Intl Container Service 10,000,000 4,220,000 PAGE 22 Portucell ADR 1,000,000 (d) 7,000,876 _____________ Total 11,220,876 _____________________________________________________________________________________________________________________________ Singapore/Malaysia (2.1%) Banks and savings & loans (0.9%) Commerce Asset 1,082,000 (b) 5,364,556 Commerce Asset 138,000 684,204 _____________ Total 6,048,760 _____________________________________________________________________________________________________________________________ Multi-industry conglomerates (1.2%) Keppel 1,000,000 8,209,000 _____________________________________________________________________________________________________________________________ Spain (1.1%) Utilities-telephone Telefonica de Espana ADR 200,000 7,525,000 _____________________________________________________________________________________________________________________________ Sweden (1.3%) Banks and savings & loans (0.4%) Nordbanken ADR 91,000 (b,c) 2,684,500 _____________________________________________________________________________________________________________________________ Metals (0.9%) Hoganas Cl B 235,000 6,334,425 ______________________________________________________________________________________________________________________________ PAGE 23 Switzerland (0.8%) Multi-industry conglomerates BBC Brown Boveri Series A 5,000 5,794,100 _____________________________________________________________________________________________________________________________ Taiwan (0.4%) Electronics Acer GDR 144,000 (b) 1,890,000 Siliconware 39,500 (c) 622,125 _____________ Total 2,512,125 _____________________________________________________________________________________________________________________________ Thailand (1.9%) Banks and saving & loans (0.7%) Bangkok Bank 450,000 4,648,950 _____________________________________________________________________________________________________________________________ Building materials (1.2%) Siam City Cement 280,000 4,628,400 TPI Polene 602,400 3,949,772 _____________ Total 8,578,172 _____________________________________________________________________________________________________________________________ United Kingdom (5.4%) Electronics (1.7%) Electrocomponents 1,200,000 6,146,400 Nynex Cable ADR 270,000 (c) 5,501,250 _____________ Total 11,647,650 _____________________________________________________________________________________________________________________________ Financial services (0.5%) GT Chile Growth Euro 100,000 3,825,000 _____________________________________________________________________________________________________________________________ Health care (1.1%) SmithKline Beecham 150,000 (c) 7,781,250 _____________________________________________________________________________________________________________________________ Media (1.3%) British Sky 117,500 4,200,625 Videotron 400,000 5,275,000 _____________ Total 9,475,625 _____________________________________________________________________________________________________________________________ Metals (0.8%) Tambang Timah 477,000 (c) 5,712,075 _____________________________________________________________________________________________________________________________ United States (4.8%) Financial services (0.4%) Credicorp 160,000 (c) 2,640,000 ______________________________________________________________________________________________________________________________ Industrial transportation (1.0%) Fritz 200,000 (c,e) 7,000,000 _____________________________________________________________________________________________________________________________ Metals (2.8%) Alumax 150,000 (c) 4,425,000 Stillwater Mining 50,000 843,750 Stillwater Mining 450,000 (b,c) 7,593,750 UCAR Intl 250,000 (b) 7,125,000 _____________ Total 19,987,500 _____________________________________________________________________________________________________________________________ Utilities-telephone (0.6%) Orion Network Systems 439,200 (c) 4,062,600 _____________________________________________________________________________________________________________________________ Total common stocks of unaffiliated issuers (Cost: $483,030,708) $473,546,049 _____________________________________________________________________________________________________________________________ Bonds (6.9%) _____________________________________________________________________________________________________________________________ Issuer and Principal Value(a) coupon rate Amount _____________________________________________________________________________________________________________________________ Argentina (0.6%) Banco de Galicia (U.S. Dollar) 7% Cv 2002 $ 5,000,000 $ 4,081,250 _____________________________________________________________________________________________________________________________ Luxembourg (0.7%) Scandinavian Broadcast PAGE 24 (U.S. Dollar) 7.25% Cv 2005 4,500,000 4,826,250 ______________________________________________________________________________________________________________________________ Malaysia (1.9%) Commerce Asset (U.S. Dollar) 1.75% Cv 2004 1,500,000 1,668,750 Renong (U.S. Dollar) 2.50% Cv 2005 10,000,000 (b) 11,875,000 _____________ Total 13,543,750 _____________________________________________________________________________________________________________________________ Mexico (1.3%) Banco Nacional de Mexico (U.S. Dollar) 7% Cv 1999 5,000,000 (b) 4,000,000 Mexican Cetes (Mexican Peso) Zero Coupon 50.60% Treasury Bill 1995 38,099,640 (f) 5,287,829 ____________ Total 9,287,829 _____________________________________________________________________________________________________________________________ South Africa (0.3%) Sappi BVI Finance (U.S. Dollar) 7.50% Cv 2002 1,825,000 (b) 1,859,219 _____________________________________________________________________________________________________________________________ Thailand (0.6%) Sahaviriya Steel (U.S. Dollar) 3.50% Cv 2005 5,000,000 (b) 4,250,000 _____________________________________________________________________________________________________________________________ United Kingdom (0.9%) Liberty Life Insurance (U.S. Dollar) 6.50% Cv 2004 6,000,000 (b) 6,600,000 ______________________________________________________________________________________________________________________________ PAGE 25 United States (0.6%) Intl Cabletel (U.S. Dollar) 7.25% Cv 2005 3,800,000 4,374,750 ______________________________________________________________________________________________________________________________ Total bonds (Cost: $45,615,498) $ 48,823,048 _____________________________________________________________________________________________________________________________ Preferred stocks (3.3%) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ Germany Friedrich Grohe 25,000 $ 6,002,675 Jungheinrich 50,000 9,199,400 Moebel Walther 400 176,174 SAP 50,000 7,672,050 _____________ Total 23,050,299 _____________________________________________________________________________________________________________________________ Total preferred stocks (Cost: $11,387,424) $ 23,050,299 _____________________________________________________________________________________________________________________________
Short-term securities (21.4%) _____________________________________________________________________________________________________________________________ Issuer Annualized Amount Value(a) yield on payable date of at purchase maturity _____________________________________________________________________________________________________________________________ U.S. government agency (0.7%) U.S. Treasury Bills 01-18-96 5.37% $5,000,000 (e) $ 4,942,176 _____________________________________________________________________________________________________________________________ Commercial paper (19.5%) A.I. Credit 12-04-95 5.75 6,000,000 5,968,540 Aon 11-08-95 5.75 5,000,000 4,994,439 11-10-95 5.75 3,000,000 2,995,710 CAFCO 11-14-95 5.76 1,800,000 (g) 1,796,282 11-15-95 5.75 4,000,000 (g) 3,991,102 12-05-95 5.74 3,600,000 3,580,620 Commerzbank U.S. Finance 12-01-95 5.75 5,000,000 4,976,167 Consolidated Rail 11-27-95 5.75 4,700,000 (g) 4,680,618 CPC Intl 11-01-95 5.79 7,400,000 (g) 7,400,000 11-16-95 5.79 7,600,000 (g) 7,581,792 Dean Witter, Discover & Co. 11-22-95 5.76 6,300,000 6,278,942 Ford Motor Credit 11-17-95 5.77 4,300,000 4,289,049 Goldman Sachs Group 11-22-95 5.76 2,700,000 2,690,991 Harris Bank 11-03-95 5.75 5,800,000 5,800,000 Lincoln Natl 11-20-95 5.76 3,900,000 (g) 3,888,206 Metlife Funding 11-29-95 5.74 2,200,000 2,190,247 Morgan Stanley Group 11-10-95 5.76 8,500,000 8,487,824 Motorola 12-07-95 5.74 5,000,000 4,971,500 PACCAR Financial 11-07-95 5.75 4,300,000 4,295,901 12-04-95 5.75 3,200,000 3,183,221 Pfizer 12-07-95 5.74 7,100,000 (g) 7,059,530 PAGE 26 Pioneer Hi-Bred Intl 11-14-95 5.75 3,100,000 3,093,597 Reed Elsevier 11-10-95 5.76 5,100,000 (g) 5,092,694 12-01-95 5.74 4,200,000 (g) 4,180,015 Sandoz 11-13-95 5.84 2,600,000 2,594,973 11-21-95 5.76 2,900,000 2,890,784 Southern California Gas 11-17-95 5.76 4,400,000 (g) 4,388,814 12-12-95 5.76 2,800,000 (g) 2,780,807 Transamerica Financial 11-06-95 5.77 4,700,000 4,696,259 USL Capital 11-13-95 5.76 6,500,000 6,487,585 _____________ Total 137,306,209 _____________________________________________________________________________________________________________________________ Letters of credit (1.2%) First Natl Bank Chicago- Commed Fuel 11-09-95 5.76 2,911,000 2,907,293 11-09-95 5.82 3,784,000 3,779,140 Barclays Bank- Banco Nacional de Mexico 12-06-95 5.79 2,000,000 1,987,484 ____________ Total 8,673,917 _____________________________________________________________________________________________________________________________ Total short term securities (Cost: $150,925,821) $150,922,302 _____________________________________________________________________________________________________________________________ Total investments in securities of unaffiliated issuers (Cost: $690,959,451) $696,341,698 _____________________________________________________________________________________________________________________________ /TABLE PAGE 27
_____________________________________________________________________________________________________________________________ Investments in securities of affiliated issuer (h) _____________________________________________________________________________________________________________________________ Common stock (0.4%) _____________________________________________________________________________________________________________________________ Issuer Shares Value(a) _____________________________________________________________________________________________________________________________ United States Industrial equipment & services GNI Group 450,000 (c) $ 3,150,000 ____________________________________________________________________________________________________________________________ Total investments in securities of affiliated issuer (Cost: $2,977,041) $ 3,150,000 _____________________________________________________________________________________________________________________________ Total investments in securities (Cost: $693,936,492)(i) $699,491,698 _____________________________________________________________________________________________________________________________ PAGE 28 ______________________________________________________________________________________________________________________________ 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) Fully or partially pledged as initial deposit on the following open stock index futures purchase contracts (see Note 7 to the financial statements): Type of security Contracts ______________________________________________________________ Hang Sang Index, Nov. 1995 389 Nikkei 225 Stock Index, Dec. 1995 410 ______________________________________________________________ (f) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition. (g) 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. (h) Investments representing 5% or more of the outstanding voting securities of the issuer. (i) At Oct. 31, 1995, the cost of securities for federal income tax purposes was $702,850,321 and the aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation $52,084,576 Unrealized depreciation (55,443,199) ____________________________________________________________________________________________ Net unrealized depreciation $(3,358,623) ____________________________________________________________________________________________
PAGE 29 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 deposits (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 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 PAGE 30 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 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 PAGE 31 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 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 stock 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 PAGE 32 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 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 PAGE 33 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. 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 34 Federal income tax information IDS Global Growth Fund The Fund is required by the Internal Revenue Code of 1986 to tell its shareholders about the tax treatment of the dividends it pays during its fiscal year. The dividends listed below were reported to you on a Form 1099-DIV, Dividends and Distributions, last January. Shareholders should consult a tax advisor on how to report distributions for state and local purposes. IDS Global Growth Fund Fiscal year ended Oct. 31, 1995 Class A Income distribution taxable as dividend income, 2.69% qualifying for deduction by corporations. Payable date Per share Dec. 30, 1994 $0.05202 Capital gain distribution taxable as long-term capital gain. Payable date Per share Dec. 30, 1994 $0.04401 Total distributions $0.09603 The distribution of $0.09603 per share, payable Dec. 30, 1994, consisted of $0.04450 derived from net investment income, $0.00752 from net short-term capital gains (a total of $0.05202 taxable as dividend income) and $0.04401 from net long-term capital gains. PAGE 35 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 (TouchToneR phones only), including current fund prices and performance, account values and recent account transactions National/Minnesota: 800-272-4445 Mpls./St. Paul area: 671-1630 AMERICAN EXPRESS FINANCIAL ADVISORS IDS Global Growth Fund IDS Tower 10 Minneapolis, MN 55440-0010 -----END PRIVACY-ENHANCED MESSAGE-----