-----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, C7/RGEKWp0W4G/aU8xCdyGN8n7y+lzQz1Bavr9L0O6YuOPjKLz3/6xLYJLquNQbq duG4m1kZscyQwQX+cwZGfg== 0000820027-97-000502.txt : 19970623 0000820027-97-000502.hdr.sgml : 19970623 ACCESSION NUMBER: 0000820027-97-000502 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970430 FILED AS OF DATE: 19970620 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: 97627537 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 1997 SEMIANNUAL REPORT IDS Global Balanced Fund (icon of) scale of globes The goal of IDS Global Balanced Fund, a part of IDS Global Series, Inc., is to provide a balance of growth of capital and current income. Distributed by American Express Financial Advisors Inc., Member SIPC (icon of) scale of globes An international blend IDS Global Balanced Fund offers a logical first step for investors who want to have some exposure to foreign markets, but also want to avoid the greater volatility of a portfolio consisting of only foreign stocks. Contents From the president 3 From the portfolio managers 3 The Fund's ten largest holdings 5 Financial statements 6 Notes to financial statements 9 Investments in securities 20 Board members and officers 27 IDS mutual funds 28 To our shareholders From the president If you're an experienced investor, you know that the past two years have been unusually strong ones in many financial markets. Perhaps just as important, you also know that history shows that bull markets don't last forever. Though they're often unpredictable, declines -- whether they're brief or long-lasting, moderate or substantial -- are always a possibility. That fact reinforces the need for investors to periodically review their long-term goals and examine whether their investment program remains on track to achieving them. Your quarterly investment statements are one part of that monitoring process. The other is a meeting with your American Express financial advisor. That becomes even more important if there's a major change in your financial situation or in the financial markets. William R. Pearce (picture of) William Pearce William R. Pearce President of the Fund From the portfolio managers It was a mixed environment for global investors during the past six months. IDS Global Balanced Fund's performance in its initial reporting period -- November 13, 1996, through April 30, 1997 -- reflected the conditions as it registered a total return of (0.7%) for Class A shares. As might be expected, much of the first few months of the period was spent investing incoming assets. By February, most of the money had been invested in stocks (60%) and bonds (31%), with the rest remaining in cash-equivalent holdings. Ultimately, we expect to have an ongoing mix of about 65% stocks and 35% bonds. On a country basis, the largest exposure was to the U.S., followed by the United Kingdom, Japan, France and Italy. At period-end the Fund held 58.8% common stocks and 25.3% bonds. Ups and downs in the U.S. Looking at country performance, the U.S. stock market, supported by good economic growth, healthy corporate profits and mild inflation, moved up smartly through the winter. But by early March, an increase in long-term interest rates started taking a toll that ended in nearly a 10% decline four weeks later. The U.S. bond market also got off to a good start, but by early December, it too was in a retreat that, aside from an upturn in February, lasted nearly through the end of the period. Overseas, Europe enjoyed generally good securities performance, but its returns to U.S.-based investors were hurt by declines in local currencies, particularly the German mark. Returns from Japan suffered from a weak currency as well. To mitigate that trend, we "hedged" some of the currencies -- a strategy that reduces the effect of currency value fluctuations on Fund performance. Small markets strong The strongest markets overall were the so-called "emerging" markets in less-developed parts of the world, such as Southeast Asia and Latin America. The latter group, which includes Mexico, Argentina and Brazil, was particularly strong. Although we had only a small exposure to these markets, their sharp stock and bond gains did enhance Fund performance. As for the rest of 1997, we think the worldwide investment outlook is largely favorable. Perhaps the most positive factor is low, or at least declining, inflation in most countries. Beyond that, Europe, while it's still experiencing a weak economy, has begun to undergo corporate restructuring -- a trend that has been a boon to stock values of U.S. companies in recent years. Among the emerging markets, Latin America continues to enjoy advancing securities prices. And in the U.S., while the possibility of higher interest rates may keep stocks and bonds off balance at times, the underpinnings for potential longer-term gains remain in place. William Westhoff (picture of) William Westhoff William Westhoff Portfolio manager Ray Goodner (picture of) Ray Goodner Ray Goodner Portfolio manager Class A Nov. 13, 1996* - April 30, 1997 (All figures per share) Net asset value (NAV) April 30, 1997 $ 4.93 Nov. 13, 1996* $ 5.00 Decrease $ 0.07 Distributions Nov. 13, 1996* - April 30, 1997 From income $ 0.03 From capital gains $ -- Total distributions$ 0.03 Total return** -0.7% Class B Nov. 13, 1996* - April 30, 1997 (All figures per share) Net asset value (NAV) April 30, 1997 $ 4.92 Nov. 13, 1996* $ 5.00 Decrease $ 0.08 Distributions Nov. 13, 1996* - April 30, 1997 From income $ 0.02 From capital gains $ -- Total distributions$ 0.02 Total return** -1.1% Class Y Nov. 13, 1996* - April 30, 1997 (All figures per share) Net asset value (NAV) April 30, 1997 $ 4.93 Nov. 13, 1996* $ 5.00 Decrease $ 0.07 Distributions Nov. 13, 1996* - April 30, 1997 From income $ 0.03 From capital gains $ -- Total distributions$ 0.03 Total return** -0.7% *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. The Fund's ten largest holdings Percent Value (of Fund's net assets) (as of April 30, 1997) U.S. Treasury 5.69% $1,307,361 7.50% 2001-2016 U.S. Treasury 4.69 1,077,857 5.00% 1999 Banque Nationale de Paris (France) 1.71 392,496 SGL Carbon (Germany) 1.60 368,266 Adidas (Germany) 1.53 351,877 United Overseas Bank (Singapore) 1.47 338,238 U.K. Treasury (United Kingdom) 1.46 335,867 8.00% 2003 Philips Electronics (Netherlands) 1.46 335,179 Credito Italiano (Italy) 1.39 320,995 Govt of Canada (Canada) 1.37 314,656 8.00% 2023 Note: Certain foreign investment risks include: changes in currency exchange rates, adverse political or economic order, and lack of similar regulatory requirements followed by U.S. companies. (icon of) pie chart The ten holdings listed here make up 22.37% of the Fund's net assets Financial statements Statement of assets and liabilities IDS Global Balanced Fund April 30, 1997
Assets (Unaudited) Investments in securities, at value (Note 1) (identified cost $22,922,037) $22,947,890 Cash in bank on demand deposit 333,463 Dividends and accrued interest receivable 173,180 Receivable for investment securities sold 156,542 Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 5) 15 Organizational cost 44 -- Total assets 23,611,134 ---------- Liabilities Payable for investment securities purchased 529,985 Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 5) 992 Accrued investment management services fee 485 Accrued distribution fee 171 Accrued service fee 107 Accrued transfer agency fee 100 Accrued administrative services fee 37 Other accrued expenses 93,438 ------ Total liabilities 625,315 ------- Net assets applicable to outstanding capital stock $22,985,819 Represented by Capital stock-- $.01 par value (Note 1) $ 46,634 Additional paid-in capital 22,984,440 Undistributed net investment income 14,357 Accumulated net realized loss (82,468) Unrealized appreciation of investments and on translation of assets and liabilties in foreign currencies (Note 1) 22,856 ------ Total-- representing net assets applicable to outstanding capital stock $22,985,819 =========== Net assets applicable to outstanding shares: Class A $14,469,672 Class B $ 8,515,156 Class Y $ 991 Net asset value per share of outstanding capital stock: Class A shares 2,933,745 $ 4.93 Class B shares 1,729,438 $ 4.92 Class Y shares 201 $ 4.93 See accompanying notes to financial statements.
Statement of operations IDS Global Balanced Fund For the period from Nov. 13, 1996 (commencement of operations) to April 30, 1997 Investment income
(Unaudited) Income: Dividends (net of foreign taxes withheld of $6,928) $ 49,491 Interest (net of foreign taxes withheld of $468) 146,953 ------- Total income 196,444 ------- Expenses (Note 2): Investment management services fee 41,436 Distribution fee -- Class B 14,095 Transfer agency fee 12,901 Incremental transfer agency fee-- Class B 327 Service fee Class A 5,888 Class B 3,289 Administrative services fees and expenses 3,147 Compensation of board members 2,763 Compensation of officers 75 Custodian fees 75,548 Postage 7,745 Registration fees 71,247 Reports to shareholders 3,521 Audit fees 5,141 Other 1,063 ----- Total expenses 248,186 Less expenses voluntarily reimbursed by AEFC (Note 2) (153,571) -------- 94,615 Earnings credits on cash balances (Note 2) (1,259) ------ Total net expenses 93,356 ------ Investment income-- net 103,088 ------- Realized and unrealized gain (loss) -- net Net realized loss on security and foreign currency transactions (including loss of $2,146 from foreign currency transactions) (Note 3) (82,468) Net change in unrealized appreciation or depreciation of investments and on translation of assets and liabilities in foreign currencies 22,856 ------ Net loss on investments and foreign currencies (59,612) ------- Net increase in net assets resulting from operations $ 43,476 ======== See accompanying notes to financial statements.
Financial statements Statement of changes in net assets IDS Global Balanced Fund For the period from Nov. 13, 1996 (commencement of operations) to April 30, 1997 Operations and distributions
(Unaudited) Investment income-- net $ 103,088 Net realized loss on investments and foreign currencies (82,468) Net change in unrealized appreciation or depreciation of investments and on translation of assets and liabilities in foreign currencies 22,856 ------ Net increase in net assets resulting from operations 43,476 ------ Distributions to shareholders from: Net investment income Class A (62,421) Class B (26,303) Class Y (7) -- Total distributions (88,731) ------- Capital share transactions (Note 4) Proceeds from sales Class A shares (Note 2) 14,849,149 Class B shares 8,759,290 Reinvestment of distributions at net asset value Class A shares 60,489 Class B shares 26,200 Class Y shares 7 Payments for redemptions Class A shares (411,950) Class B shares (Note 2) (255,111) -------- Increase in net assets from capital share transactions 23,028,074 ---------- Total increase in net assets 22,982,819 Net assets at beginning of period (Note 1) 3,000 ----- Net assets at end of period (including undistributed net investment income of $14,357) $22,985,819 =========== See accompanying notes to financial statements.
Notes to financial statements IDS Global Balanced Fund (Unaudited as to April 30, 1997) 1. Summary of significant accounting policies IDS Global Balanced Fund (a series of IDS Global Series, Inc.) 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 that can be allocated among the separate series as designated by the board. On Nov. 12, 1996, American Express Financial Corporation (AEFC) invested $3,000 in the Fund which represented 200 shares for Class A, Class B and Class Y. Operations commenced on Nov. 13, 1996. The Fund offers Class A, Class B and Class Y shares. Class A shares are sold with a front-end sales charge. Class B shares may be subject to a contingent deferred sales charge and such shares automatically convert to Class A after eight years. Class Y shares have no sales charge and are offered only to qualifying institutional investors. All classes of shares have identical voting, dividend, liquidation and other rights, and the same terms and conditions, except that the level of distribution fee, transfer agency fee and service fee (class specific expenses) differs among classes. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. Significant accounting policies followed by the Fund are summarized below: Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increase and decrease in net assets from operations during the period. Actual results could differ from those estimates. Valuation of securities All securities are valued at the close of each business day. Securities traded on national securities exchanges or included in national market systems are valued at the last quoted sales price; securities for which market quotations are not readily available are valued at fair value according to methods selected in good faith by the board. Determination of fair value involves, among other things, reference to market indexes, matrixes and data from independent brokers. Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates; those maturing in 60 days or less are valued at amortized cost. Option transactions In order to produce incremental earnings, protect gains and facilitate buying and selling of securities for investment purposes, the 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 or 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. 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 financial 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 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 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 the 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. Dividends to shareholders Dividends declared and paid each calendar quarter from net investment income 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. Other Security transactions are accounted for on the date securities are purchased or sold. Dividend income is recognized on the ex-dividend date and interest income, including level-yield amortization of premium and discount, is accrued daily. At April 30, 1997, AEFC owned 201 shares of Class Y. 2. Expenses and sales charges The Fund entered into agreements with AEFC for managing its portfolio, providing administrative services and serving as transfer agent. 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 0.79% to 0.67% annually. Under its Administrative Services Agreement, the Fund pays AEFC a fee for administration and accounting services at a percentage of the Fund's average daily net assets in reducing percentages from 0.06% to 0.04% annually. Additional administrative service expenses paid by the Fund are office expenses, consultants' fees, and compensation of officers and employees. Under this agreement, the Fund also pays taxes, audit and certain legal fees, registration fees for shares, compensation of board members, corporate filing fees, organizational expenses, and any other expenses properly payable by the Fund approved by the board. Under a separate Transfer Agency Agreement, AEFC maintains shareholder accounts and records. The Fund pays AEFC an annual fee per shareholder account for this service as follows: oClass A $15 oClass B $16 oClass Y $15 The Fund entered into agreements with American Express Financial Advisors Inc. for distribution and shareholder servicing-related services. Under a Plan and Agreement of Distribution, the Fund pays a distribution fee at an annual rate of 0.75% of the Fund's average daily net assets attributable to Class B shares for distribution-related services. Under a Shareholder Service Agreement, the Fund pays a fee for service provided to shareholders by financial advisors and other servicing agents. The fee is calculated at a rate of 0.175% of the Fund's average daily net assets attributable to Class A and Class B shares. Sales charges received by American Express Financial Advisors Inc. for distributing Fund shares were $194,838 for Class A and $21 for Class B for the period ended April 30, 1997. The Fund also pays custodian fees to American Express Trust Company, an affiliate of AEFC. AEFC has agreed to waive certain fees and to absorb certain other of the Fund's expenses until Oct. 31, 1997. Under this agreement, the Fund's total expenses will not exceed 1.50% for Class A, 2.26% for Class B and 1.33% for Class Y of the Fund's average daily net assets. During the period ended April 30, 1997, the Fund's custodian and transfer agency fees were reduced by $1,259 as a result of earnings credits from overnight cash balances. 3. Securities transactions Cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated $21,584,916 and $2,180,344, respectively, for the period from Nov. 13, 1996 to April 30, 1997. Realized gains and losses are determined on an identified cost basis. 4. Capital share transactions Transactions in shares of capital stock for the period indicated is as follows: Period ended April 30, 1997* Class A Class B Class Y Sold 3,005,076 1,775,899 -- Issued for reinvested 12,293 5,330 1 distributions Redeemed (83,824) (51,991) -- ------- ------- Net increase 2,933,545 1,729,238 1 * Inception date was Nov. 13, 1996. 5. Foreign currency contracts At April 30, 1997, the Fund had entered into eight foreign currency exchange contracts that obligate the Fund to deliver currencies at specified future dates. The unrealized appreciation and/or depreciation (see Summary of significant accounting policies) on these contracts is included in the accompanying financial statements. The terms of the open contracts are as follows: Exchange date Currency to Currency to Unrealized Unrealized be delivered be received appreciation depreciation May 2, 1997 58,683 36,255 $-- $108 U.S. Dollar British Pound May 2, 1997 355 455 -- 1 U.S. Dollar Australian Dollar May 2, 1997 21,431 41,555 -- 95 U.S. Dollar Dutch Guilder May 5, 1997 37,404 72,863 7 -- U.S. Dollar Dutch Guilder May 6, 1997 13,564 8,358 -- 20 U.S. Dollar British Pound May 6, 1997 38,371 23,527 -- 243 U.S. Dollar British Pound May 7, 1997 148,942 215,605 8 -- U.S. Dollar Singapore Dollar May 14, 1997 54,183 6,800,000 -- 525 U.S. Dollar Japanese Yen $15 $992 6. Financial highlights The tables below show certain important financial information for evaluating the Fund's results. Period ended April 30, Per share income and capital changesa
Class A Class B Class Y 1997b 1997b 1997b Net asset value, $5.00 $5.00 $5.00 beginning of period Income from investment operations: Net investment income .30 .29 .30 Net gains (both (.34) (.35) (.34) realized and unrealized) Total from investment operations (.04) (.06) (.04) Less distributions: Dividends from net investment income (.03) (.02) (.03) Net asset value, 4.93 4.92 4.93 end of period Ratios/supplemental data Class A Class B Class Y 1997b 1997b 1997b Net assets, end of $14 $9 -- period (in millions) Ratio of expenses to 1.50%c,f 2.26%c,f 1.17%c,f average daily net assetsd Ratio of net income to 2.22%c 1.47%c 2.44%c average daily net assets Portfolio turnover rate 20% 20% 20% (excluding short-term securities) Total returne (0.7%) (1.1%) (0.7%) Average brokerage $.0310 $.0310 $.0310 commission rateg aFor a share outstanding throughout the period. Rounded to the nearest cent. bPeriod from Nov. 13, 1996 (inception date) to April 30, 1997 (Unaudited). cAdjusted to an annual basis. dExpense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. eTotal return does not reflect payment of a sales charge. fDuring the period from Nov. 13, 1996 to April 30, 1997, AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 4.43%, 5.20% and 4.36% for Class A, B, and Y, respectively. gThe Fund is required to disclose an average brokerage commission rate per share for security trades on which commissions are charged. The comparability of this information may be affected by the fact that commission rates per share vary significantly among foreign countries.
Investments in securities IDS Global Balanced Fund April 30, 1997 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (58.8%) Issuer Shares Value(a) Australia (0.8%) Banks and savings & loans (0.3%) Westpac Banking 12,000 $ 64,682 Energy (0.3%) Woodside Petroleum 7,300 58,082 Metals (0.2%) WMC 9,072 53,782 Brazil (0.8%) Utilities -- telephone Telecomunicacoes Brasileiras- Telebras ADR 1,600 183,600 Canada (1.2%) Multi-industry conglomerates (0.4%) Bombardier 5,000(b) 100,949 Utilities -- telephone (0.8%) BCE Mobile Communications 6,000(b) 184,714 France (5.8%) Automotive & related (0.8%) Michelin 3,440 192,201 Banks and savings & loans (1.7%) Banque Nationale de Paris 9,200 392,496 Computers & office equipment (0.3%) Dassault Systems 1,100(b) 67,547 Electronics (0.8%) SGS-THOMSON Microelectronics 2,400(b) 185,042 Energy (1.9%) Elf Acquitaine 2,265(b) 219,650 Total Petroleum 2,520(b) 208,975 Total 428,625 Leisure time & entertainment (0.3%) Accor 507 72,708 Germany (4.3%) Chemicals (0.9%) Bayer 4,000 $160,000 Hoechst 1,138 44,698 Total 204,698 Metals (1.6%) SGL Carbon 2,640(b) 368,266 Textiles & apparel (1.5%) Adidas 3,375 351,877 Utilities -- telephone (0.3%) Deutsche Telekom 3,000(b) 65,121 Hong Kong (2.6%) Banks and savings & loans (0.9%) HSBC Holdings 8,450(b) 218,035 Financial services (1.1%) Cheung Kong 14,000(b) 122,894 New World Development 7,000 40,392 Sun Hung Kai Properties 8,000(b) 86,749 Total 250,035 Multi-industry conglomerates (0.6%) Hutchinson Whampoa 19,000 141,031 Italy (3.0%) Banks and savings & loans (1.4%) Credito Italiano 229,000(b) 320,995 Energy (0.8%) Ente Nazionale Idrocarburi 36,750 186,521 Textiles & apparel (0.3%) Gucci 790(b) 55,042 Utilities -- telephone (0.5%) Stet Risp 25,300 119,616 Japan (5.3%) Automotive & related (0.5%) Mitsubishi Motors 16,000(b) 110,914 Beverages & tobacco (0.3%) Kirin Brewery 8,000 $ 69,321 Electronics (1.7%) Fujitsu 5,000(b) 51,991 Ibiden 5,000(b) 65,777 Mitsumi Electric 3,000(b) 63,098 NEC 5,000(b) 61,050 TDK 2,000(b) 144,157 Total 386,073 Media (0.9%) Dai Nippon Printing 2,000(b) 36,079 Sony 1,100(b) 80,066 Tokyo Broadcasting Systems 6,000(b) 93,584 Total 209,729 Metals (0.4%) Sumitomo Metal & Mining 41,000(b) 102,060 Multi-industry conglomerates (0.3%) Secom 1,000(b) 59,475 Paper & packaging (0.4%) Uni-Charm 3,000(b) 91,930 Real estate (0.3%) Tokyu Land 23,000(b) 72,472 Retail (0.3%) Takashiyama 6,000(b) 67,116 Utilities -- electric (0.1%) Sumitomo Electric 2,000(b) 27,098 Utilities -- telephone (0.1%) Nippon Comsys 3,000(b) 34,267 Malaysia (1.3%) Banks and savings & loans (0.8%) Malayan Banking 17,000(b) 169,289 Multi-industry conglomerates (0.1%) Renong 23,000(b) 31,461 Utilities -- electric (0.4%) Tenaga Nasional 21,000(b) 97,032 Mexico (0.5%) Building materials & construction (0.2%) Cemex ADR 3,500(b) $ 26,578 Cemex 5,000(b) 18,315 Total 44,893 Multi-industry conglomerates (0.3%) Grupo Industrial 14,000(b) 76,833 Netherlands (2.9%) Chemicals (0.7%) Akzo Nobel 1,345(b) 173,335 Industrial equipment & services (1.5%) Philips Electronics 6,419(b) 335,179 Insurance (0.7%) Ing Groep 4,010 157,505 Singapore (2.8%) Banks and savings & loans (1.5%) United Overseas Bank 36,000(b) 338,238 Financial services (0.9%) City Developments 12,000(b) 96,995 Wing Tai Holdings 46,000(b) 118,853 Total 215,848 Transportation (0.4%) Straits Steamship 36,000(b) 92,518 Spain (0.1%) Energy Repsol 330(b) 13,836 Sweden (0.8%) Communications equipment & services (0.1%) Ericcson (LM) CI B 540 17,071 Industrial equipment & services (0.7%) Asea Brown Boveri AB Cl B 14,000 169,541 Switzerland (1.4%) Financial services (0.3%) CS Holdings 680(b) 76,555 Health care (1.1%) Novartis 95(b) $125,120 Roche Holdings 14 118,210 Total 243,330 United Kingdom (9.7%) Banks and savings & loans (0.4%) Lloyds TSB Group 10,730(b) 98,073 Building materials & construction (0.3%) Redland 11,360 64,435 Electronics (0.7%) Johnson Matthey 8,720(b) 70,728 Premier Farnell 11,800(b) 89,591 Total 160,319 Energy (0.9%) Shell Transport & Trading 11,583(b) 204,607 Health care (1.0%) Glaxo Wellcome 11,400 224,191 Household products (0.7%) Unilever 6,131(b) 161,209 Insurance (0.5%) Sun Alliance Group 13,478(b) 106,700 Leisure time & entertainment (0.7%) Granada Group 11,900(b) 171,636 Multi-industry conglomerates (1.2%) EMI Group 4,100 81,328 Siebe 13,076(b) 193,260 Total 274,588 Retail (1.1%) Great Universal Stores 17,500(b) 180,939 Harvey Nichols 12,750(b) 64,570 Total 245,509 Transportation (0.5%) NFC 46,000 106,602 Utilities -- gas (0.8%) BG 64,149(b) 186,087 Utilities -- telephone (0.9%) British Telecommunications 29,564 $216,798 United States (15.5%) Aerospace & defense (0.9%) Boeing 2,130 210,071 Airlines (0.7%) AMR 1,600(b) 149,000 Banks and savings & loans (1.0%) BankAmerica 2,000 233,750 Beverages & tobacco (0.8%) Philip Morris 4,770 187,819 Communications equipment & services (0.9%) Motorola 3,500 200,375 Computers & office equipment (1.9%) Cisco Systems 2,550(b) 131,963 Electronic Data Systems 2,400 80,100 Hewlett-Packard 4,200 220,500 Total 432,563 Electronics (1.1%) Intel 1,700 260,313 Energy equipment & services (0.5%) Schlumberger 1,100 121,825 Health care (1.0%) Amgen 3,730(b) 219,604 Industrial equipment & services (1.0%) Illinois Tool Works 2,400 219,300 Insurance (0.9%) American Intl Group 1,620 208,170 Leisure time & entertainment (0.4%) Disney (Walt) 1,240 101,680 Media (1.1%) Interpublic Group of Companies 4,400 249,150 Multi-industry conglomerates (0.9%) General Electric 1,930 $213,989 Retail (1.1%) Walgreen 5,250 241,500 Utilities -- telephone (1.3%) AirTouch Communications 12,000(b) $ 306,000 Total common stocks (Cost: $13,345,804) $13,524,447 Bonds (25.3%)
Issuer Coupon Maturity Principal Value(a) rate year amount Argentina (1.5%) Perez Companc (U.S. Dollar) 9.00 % 2006 $ 100,000(d) $101,250 Republic of Argentina (Japanese Yen) 5.50 2001 10,000,000 82,871 Republic of Argentina (U.S. Dollar) 11.375 2017 150,000 159,094 Total 343,215 Australia (1.1%) Govt of Australia (Australian Dollar) 10.00 2007 125,000 110,737 Govt of Australia (Australian Dollar) 9.75 2002 150,000 128,281 Total 239,018 Canada (1.4%) Govt of Canada (Canadian Dollar) 8.00 2023 400,000 314,656 Denmark (0.4%) Kingdom of Denmark (Danish Krone) 8.00 2003 600,000 100,985 Germany (1.4%) Bundes Republic (Deutsche Mark) 7.50 2004 200,000 129,340 (Deutsche Mark) 6.00 2016 350,000 192,887 Total 322,227 Italy (1.7%) Republic of Italy (Japanese Yen) 5.00 2004 5,000,000 46,477 (Italian Lira) 8.50 2004 350,000,000 215,148 (Italian Lira) 10.50 2000 200,000,000 128,140 Total 389,765 Mexico (0.7%) United Mexican States (U.S. Dollar) 8.00 2026 150,000 159,094 Philippines (0.6%) Philippine Long Distance Telephone (U.S. Dollar) 8.35 2017 150,000(d) 138,386 South Korea (0.3%) Korea Development Bank (U.S. Dollar) 7.25 2006 75,000 73,735 Spain (0.4%) Govt of Spain (Spanish Peseta) 8.00 2004 13,000,000 96,430 Sweden (0.9%) Govt of Sweden (Swedish Krona) 8.00 2007 1,600,000 214,965 United Kingdom (2.4%) U.K. Treasury (British Pound) 7.00 2002 75,000 120,860 (British Pound) 8.00 2003 200,000 335,867 (British Pound) 9.00 2000 50,000 84,929 Total 541,656 United States (12.5%) Federal Natl Mtge Assn (U.S. Dollar) 7.50 2027 302,261 299,900 Morgan (JP) (U.S. Dollar) 4.73 2012 100,000(c) 97,650 U.S. Treasury (U.S. Dollar) 5.00 1999 1,100,000 1,077,857 (U.S. Dollar) 7.50 2001-16 1,250,000 1,307,361 Texas Utilities Electric (U.S. Dollar) 8.175 2037 100,000 98,525 Total 2,881,293 Total bonds (Cost: $5,957,248) $5,815,425 See accompanying notes to investments in securities.
Other (--%) Issuer Shares Value(a) Akzo Nobel Warrants 1,230 $ 10,231 Total other (Cost: $21,198) $ 10,231 Issuer Annualized Amount Value(a) yield on payable at date of maturity purchase U.S. governement agency (15.7%) Federal Home Loan Bank Disc Nt 05-01-97 5.43% $800,000 $800,000 Federal Home Loan Mtge Corp Disc Nts 05-01-97 5.36% $ 700,000 $ 700,000 05-06-97 5.46 1,500,000 1,498,867 05-13-97 5.42 600,000 598,920 Total short-term securities (Cost: $3,597,787) $ 3,597,787 Total investment in securities (Cost: $22,922,037)(e) $22,947,890 See accompanying notes to investments in securities. 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) Non-income producing. (c) Interest rate varies either based on a predetermined schedule or to reflect current market conditions; rate shown is the effective rate on April 30, 1997. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1993, as amended. This security has been determined to be liquid under guidelines established by the board. (e) At April 30, 1997, the cost of securities for federal income tax purposes was approximately $22,920,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation............................................$ 627,000 Unrealized depreciation.............................................(599,000) Net unrealized appreciation.......................................$ 28,000 Board members and officers Board members and officers of the Fund President and interested board member William R. Pearce Chairman of the board, Board Services Corporation (provides administrative services to boards including the boards of the IDS and IDSLife funds and Master Trust portfolios). Independent board members H. Brewster Atwater Jr. Former chairman and chief executive officer, General Mills, Inc. Lynne V. Cheney Distinguished fellow, American Enterprise Institute for Public Policy Research. Robert F. Froehlke Former president of all funds in the IDS MUTUAL FUND GROUP. Heinz F. Hutter Former president and chief operating officer, Cargill, Inc. Anne P. Jones Attorney and telecommunications consultant. Melvin R. Laird Senior counsellor for national and international affairs, The Reader's Digest Association, Inc. Alan K. Simpson Former United States senator for Wyoming. Edson W. Spencer Former chairman and chief executive officer, Honeywell, Inc. Wheelock Whitney Chairman, Whitney Management Company. C. Angus Wurtele Chairman of the board, The Valspar Corporation. Interested board members who are officers and/or employees of AEFC William H. Dudley Senior advisor to the Chief Executive Officer. David R. Hubers President and chief executive officer, AEFC. John R. Thomas Senior vice president, AEFC. Officers who also are officers and/or employees of AEFC Peter J. Anderson Senior vice president, AEFC. Vice president - Investments for the Fund. Melinda S. Urion Senior vice president and chief financial officer, AEFC. Treasurer for the Fund. Other officer Leslie L. Ogg President, treasurer and corporate secretary of Board Services Corporation. Vice president, general counsel and secretary for the Fund. Refer to the SAI for the board members' and officers' biographies. IDS mutual funds Global/International funds Funds in this group seek capital growth and/or income by investing primarily in foreign securities. Foreign investments may be subject to currency fluctuations and political and economic risks of the countries in which the investments are made. They are high risk mutual funds with a potential for high reward. IDS Emerging Markets Fund Invests in a Portfolio comprised primarily of stocks of companies in developing countries throughout the world that are believed to offer growth potential. Seeks to provide long-term growth of capital. (icon of) world globe IDS Global Growth Fund Invests in a Portfolio comprised primarily of stocks of companies throughout the world that are positioned to meet market needs in a changing world economy. These companies offer above-average potential for long-term growth. (icon of) world IDS International Fund Invests primarily in common stocks of foreign companies that offer potential for superior growth. The Fund may invest up to 20% of its assets in the U.S. market. (icon of) three flags IDS Global Balanced Fund Invests in stocks-and bonds in, for the most part, major markets throughout the world, including the U.S. Seeks to provide a balance of growth of capital and current income. (icon of) scale of globes IDS Global Bond Fund Invests in a Portfolio comprised primarily of debt securities of U.S. and foreign issuers to seek high total return through income and growth of capital. (icon of) globe Growth funds Funds in this group seek capital growth, primarily from common stocks. They are high risk mutual funds with a potential for high reward. IDS Precious Metals Fund Invests primarily in the securities of foreign or domestic companies that explore for, mine and process or distribute gold and other precious metals. A highly aggressive and speculative fund that seeks long-term growth of capital. (icon of) cart of precious gems IDS Discovery Fund Invests in small- and medium-size, growth-oriented companies emphasizing technological innovation and productivity enhancement. Buys and holds larger growth-oriented stocks. (icon of) ship IDS Small Company Index Fund Invests in all or a representative group of the equity securities comprising the S&P SmallCap 600 Index, as it strives to provide long-term capital appreciation. (icon of) building IDS Strategy Aggressive Fund Invests primarily in common stocks of companies that are selected for their potential for above-average growth. Above-average means that their growth potential is better, in the opinion of the portfolio's investment manager, than the Standard & Poor's Corporation (S&P) 500 Stock Index. (icon of) chess piece IDS Research Opportunities Fund Invests in a Portfolio comprised primarily of equity securities of companies included in the S&P 500 Index that are believed to have strong growth potential. The Portfolio is managed using a research methodology by the Research Department of AEFC. Goal is long-term appreciation. (icon of) magnifying glass IDS Growth Fund Invests in a Portfolio comprised primarily of companies that have above-average potential for long-term growth as a result of new management, marketing opportunities or technological superiority. (icon of) flower IDS New Dimensions Fund Invests in a Portfolio comprised primarily of companies with significant growth potential due to superiority in technology, marketing or management. The Fund frequently changes its industry mix. (icon of) dimension IDS Progressive Fund Invests primarily in undervalued common stocks. The Fund holds stocks for the long term with the goal of capital growth. (icon of) shooting star Growth and income funds These funds focus on securities of medium to large, well-established companies that offer long-term growth of capital and reasonable income from dividends and interest. IDS Equity Select Fund Invests primarily in a combination of moderate growth stocks, higher-yielding equities and bonds. Seeks growth of capital and income. (icon of) three pine trees IDS Blue Chip Advantage Fund Invests in selected stocks from a major market index. Securities purchased are those recommended by our research analysts as the best from each industry represented on the index. Offers potential for long-term growth as well as dividend income. (icon of) ribbon IDS Managed Allocation Fund Invests in a Portfolio comprised primarily of U.S. equity securities, U.S. and foreign debt securities, foreign equity securities and money market instruments. The Fund provides diversification among these major investment categories and has a target mix that represents the way the Fund's investments will be allocated over the long term. Seeks maximum total return. (icon of) spinning toy IDS Stock Fund Invests in a Portfolio comprised primarily of common stocks of companies representing many sectors of the economy. Seeks current income and growth of capital. (icon of) building with columns IDS Equity Value Fund Invests primarily in undervalued common stocks that offer potential for growth of capital and income. (icon of) three growing flowers IDS Utilities Income Fund Invests primarily in the stocks of public utility companies to seek high current income and growth of income and capital with reduced volatility. (icon of) light bulb IDS Diversified Equity Income Fund Invests in a Portfolio comprised primarily in high-yielding common stocks to seek high current income and, secondarily, to benefit from the growth potential offered by stock investments. (icon of) two puzzle pieces IDS Mutual Invests in a Portfolio which seeks to balance between common stocks and senior securities (preferred stocks and bonds). Seeks a balance of growth of capital and current income. (icon of) scale of justice Income funds The funds in this group invest their assets primarily in corporate bonds or government securities to seek interest income. Secondary objective is capital growth. Risk varies by bond quality. IDS Extra Income Fund Invests in a Portfolio comprised mainly in long-term, high-yielding corporate fixed-income securities in the lower rated, higher risk bond categories to seek high current income. Secondary objective is capital growth. (icon of) two coins IDS Bond Fund Invests mainly in corporate bonds, at least 50% in the higher rated, lower risk bond categories, or the equivalent, and in government bonds. (icon of) Greek column IDS Selective Fund Invests in a Portfolio comprised primarily of high-quality corporate bonds and other highly rated debt instruments including government securities and short-term investments. Seeks current income and preservation of capital. (icon of) skyline IDS Federal Income Fund Invests in a Portfolio comprised primarily of securities issued or guaranteed as to the timely payment of principal and interest by the U.S. government, its agencies and instrumentalities. Seeks a high level of current income and safety of principal consistent with its type of investments. (icon of) shield with eagle head Tax-exempt income funds These funds provide tax-free income by investing in municipal bonds. The income is generally free from federal income tax, but a portion of the income may be subject to state and local taxes. Risk varies by bond quality. IDS Tax-Exempt Bond Fund Invests mainly in bonds and notes of state or local government units, with at least 75% in the four highest rated, lowest risk bond categories. (icon of) shield with Greek column IDS Insured Tax-Exempt Fund Invests primarily in municipal securities that are insured as to the timely payment of principal and interest. The insurance feature minimizes credit risk of the Fund but does not guarantee the market value of the Fund's shares. (icon of) shield with star IDS State Tax-Exempt Funds (CA, MA, MI, MN, NY, OH) Invests primarily in high- and medium-grade municipal securities to provide income to residents of each respective state that is exempt from federal, state and local income taxes. (New York is the only state that is exempt at the local level.) (icon of) shield with U.S. enclosed IDS High Yield Tax-Exempt Fund Invests in a Portfolio comprised primarily of medium- and lower-quality municipal bonds and notes. Lower-quality securities generally involve greater risk of principal and income. (icon of) shield with basket of apples enclosed IDS Intermediate Tax-Exempt Fund Invests in mainly investment-grade bonds and other debt securities with intermediate-term maturities issued by state and local government units. Goal is to seek a high level of current income exempt from federal taxes. (icon of) shield with tree enclosed Money market funds These money market funds have three main goals: conservation of capital, constant liquidity and the highest possible current income consistent with these objectives. An investment in these funds is neither insured nor guaranteed by the U.S. government, and there can be no assurance that these funds will be able to maintain a stable net asset value of $1.00 per share. Very limited risk. IDS Cash Management Fund Invests in such money market securities as high quality commercial paper, bankers' acceptances, certificates of deposit (CDs) and other bank securities. (icon of) piggy bank IDS Tax-Free Money Fund Invests primarily in short-term bonds and notes issued by state and local governments to seek high current income exempt from federal income taxes. (icon of) shield with piggy bank enclosed For more 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. Quick telephone reference American Express Financial Advisors Telephone Transaction Service Redemptions and exchanges, dividend payments or reinvestments and automatic payment arrangements National/Minnesota: 800-437-3133 Mpls./St. Paul area: 671-3800 TTY Service For the hearing impaired 800-846-4852 American Express Financial Advisors Easy Access Line Automated account information (TouchTone(R) phones only), including current fund prices and performance, account values and recent account transactions 800-862-7919 BULK RATE U.S. POSTAGE PAID PERMIT NO. 85 SPENCER, IA IDS Global Balanced Fund IDS Tower 10 Minneapolis, MN 55440-0010 -----END PRIVACY-ENHANCED MESSAGE-----