-----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, NsQJxQAf3dXDSltCBe1fxk6TDt4QcndIiUF7Pdj/iixyGJbsT60z/85+KWJmnq0a 7INAOAk9dFXqriTKYcff7A== 0000820027-98-000425.txt : 19980624 0000820027-98-000425.hdr.sgml : 19980624 ACCESSION NUMBER: 0000820027-98-000425 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980430 FILED AS OF DATE: 19980623 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: SEC FILE NUMBER: 811-05696 FILM NUMBER: 98652176 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 1998 SEMIANNUAL REPORT IDS Emerging Markets Fund The goal of IDS Emerging Markets Fund, a part of IDS Global Series, Inc., is long-term growth of capital. American Express Financial Advisors Distributed by American Express Financial Advisors Inc. (icon of) world globe Expanding your opportunities As free enterprise expands around the world, so do investment opportunities. Some of the most exciting ones can be found in the so-called "emerging markets" - smaller economies located largely in Asia, Latin America and Eastern Europe. Attracted by their rapid growth potential, many aggressive investors have made these markets, which have a higher-than-average risk level, an integral part of their portfolios. Contents From the chairman 3 From the portfolio manager 3 The Portfolio's ten largest holdings 5 Financial statements (Fund) 6 Notes to financial statements (Fund) 9 Financial statements (Portfolio) 17 Notes to financial statements (Portfolio) 20 Investments in securities 30 Board members and officers 34 IDS mutual funds 35 To our shareholders From the chairman If you're an experienced investor, you know that the past few years have been unusually strong in many financial markets. Perhaps just as important, 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. We saw evidence of that in late October, when declines in Asian stock markets spawned a sharp drop in markets worldwide, including the U.S. That fact reinforces the need for investors to review periodically 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 R. Pearce William R. Pearce Chairman of the board From the portfolio manager The past six months was another volatile period in emerging markets around the world. Nevertheless, IDS Emerging Markets Fund's Class A shares produced a positive return of 4.1% for the first half of the fiscal year, which ran from November 1997 through April 1998. The gain exceeded that of the Morgan Stanley Emerging Market Fund Index, a commonly used benchmark for evaluating the performance of mutual funds such as this one. The period began with much of the world still reeling from a meltdown in Asian markets that occurred last October. Although the financial crisis was actually confined to Asia, many smaller markets in other parts of the world suffered as well, as worried investors hastily dumped shares in any market that appeared susceptible to a spreading of the "Asian flu." Two such markets were Latin America, including Mexico, Brazil and Argentina, and Russia. While the Fund's exposure to Asia was quite small (I had greatly reduced Asian holdings prior to last October's downturn), it did have considerable holdings in Latin America and Russia, which remained under selling pressure for most of the winter. One of the few emerging markets that bucked the trend was Hungary, where the Fund's investments were modest but rewarding. A cash cushion Also benefiting the Fund's performance was the high level of cash reserves in the portfolio -- nearly 20% of assets at times. The cash provided something of a cushion for the Fund's value amid the market upheaval, especially during the first few months of the period. The brightest part of the past six months came in February, when the Fund's holdings in Brazil and Eastern Europe, both of which are benefiting from a shift toward market economies and the privatization of several industries, rebounded strongly. This allowed the Fund to more than recoup the losses incurred in the previous months. As we enter the second half of the fiscal year, it appears that the worst is over in the Asian markets, which, if so, should lift at least some of the cloud hovering over emerging markets as a whole. While that should allow more independent market performance in the months ahead, I think the potential for volatility is very high. Therefore, I am continuing to avoid Asia, except for relatively modest holdings in China and Taiwan, whose economies still enjoy good health. The bulk of the investments, though, continue to be spread among markets in Latin America and Eastern Europe, where the forces of free enterprise remain hard at work. Ian King (picture of) Ian King Ian King Portfolio manager To our shareholders Class A 6-month performance (All figures per share) Net asset value (NAV) April 30, 1998 $ 5.41 Oct. 31, 1997 $ 5.33 Increase $ 0.08 Distributions Nov. 1, 1997 - April 30, 1998 From income $ 0.14 From capital gains $ -- Total distributions $ 0.14 Total return* +4.1%** Class B 6-month performance (All figures per share) Net asset value (NAV) April 30, 1998 $ 5.35 Oct. 31, 1997 $ 5.29 Increase $ 0.06 Distributions Nov. 1, 1997 - April 30, 1998 From income $ .14 From capital gains $ -- Total distributions $ .14 Total return* +3.7%** Class Y 6-month performance (All figures per share) Net asset value (NAV) April 30, 1998 $ 5.41 Oct. 31, 1997 $ 5.33 Increase $ 0.08 Distributions Nov. 1, 1997 - April 30, 1998 From income $ 0.14 From capital gains $ -- Total distributions $ 0.14 Total return* +4.1%** *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 Portfolio's ten largest holdings Percent Value (of Portfolio's net assets)(as of April 30, 1998) Telecomunicacoes Brasileiras- Telebras ADR (Brazil) 3.89% $17,662,812 National Bank of Greece (Greece) 3.88 17,594,100 Petroleo Brasileiro ADR (Brazil) 3.06 13,867,414 Telefonos de Mexico ADR Cl L (Mexico) 2.37 10,758,750 Centrais Eletricas Brasileiras ADR (Brazil) 2.20 9,985,608 Shanghai Industrial Holdings (Hong Kong) 2.09 9,467,031 Samsung Electronics (South Korea) 1.93 8,742,686 Bank Hapoalim (Israel) 1.89 8,573,120 China Telecom (Hong Kong) 1.88 8,540,100 Grupo Carso (Mexico) 1.87 8,496,170 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. For further detail about these holdings, please refer to the section entitled "Investments in securities" herein. (icon of) pie chart The ten holdings listed here make up 25.06% of the Portfolio's net assets
Financial statements Statement of assets and liabilities IDS Emerging Markets Fund April 30, 1998 Assets (Unaudited) Investment in Emerging Markets Portfolio (Note 1) $453,040,285 Organizational cost 33 Total assets $453,040,318 ------------ Liabilities Disbursements in excess of cash on demand deposit 2,000 Accrued distribution fee 3,124 Accrued service fee 2,134 Accrued transfer agency fee 1,709 Accrued administrative services fee 1,166 Other accrued expenses 112,295 ------- Total liabilities 122,428 ------- Net assets applicable to outstanding capital stock $452,917,890 ------------ Represented by Capital stock-- $.01 par value (Note 1) $ 840,919 Additional paid-in capital 485,058,270 Net operating loss (1,216,177) Accumulated net realized gain (loss) (39,360,405) Unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies 7,595,283 --------- Total-- representing net assets applicable to outstanding capital stock $452,917,890 ============ Net assets applicable to outstanding shares: Class A $298,126,900 Class B $154,742,628 Class Y $ 48,362 Net asset value per share of outstanding capital stock: Class A shares 55,148,594 $ 5.41 Class B shares 28,934,396 $ 5.35 Class Y shares 8,941 $ 5.41 See accompanying notes to financial statements.
Statement of operations IDS Emerging Markets Fund Six months ended April 30, 1998 Investment income (Unaudited) Income: Dividends $1,165,483 Interest 1,882,020 Less foreign taxes withheld (95,405) ------- Total income 2,952,098 --------- Expenses (Note 2): Expenses allocated from Emerging Markets Portfolio 2,420,710 Distribution fee -- Class B 491,839 Transfer agency fee 548,481 Incremental transfer agency fee-- Class B 13,294 Service fee Class A 228,709 Class B 114,547 Class Y 8 Administrative services fees and expenses 190,310 Compensation of board members 4,594 Postage 38,527 Registration fees 113,125 Reports to shareholders 11,927 Audit fees 2,250 Other 1,774 ----- Total expenses 4,180,095 Earnings credits on cash balances (Note 2) (8,054) ------ Total net expenses 4,172,041 --------- Investment income (loss) -- net (1,219,943) ---------- Realized and unrealized gain (loss) -- net Net realized gain (loss) on: Security transactions (35,258,680) Foreign currency transactions (2,120,798) ---------- Net realized gain (loss) on investments (37,379,478) Net change in unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies 57,005,821 ---------- Net gain (loss) on investments and foreign currencies 19,626,343 ---------- Net increase (decrease) in net assets resulting from operations $18,406,400 =========== See accompanying notes to financial statements.
Financial statements Statement of changes in net assets IDS Emerging Markets Fund Operations and distributions April 30, 1998 For the period Six months ended from Nov. 13, 1996* (Unaudited) to Oct. 31, 1997 Investment income (loss)-- net $ (1,219,943) $ 79,761 Net realized gain (loss) on investments (37,379,478) 8,025,874 Net change in unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies 57,005,821 (49,410,538) ---------- ----------- Net increase (decrease) in net assets resulting from operations 18,406,400 (41,304,903) ---------- ----------- Distributions to shareholders from: Net investment income Class A -- (22,017) Class B -- (5,559) Class Y -- (2) Net realized gain Class A (6,690,800) -- Class B (3,376,827) -- Class Y (29) -- --- --- Total distributions (10,067,656) (27,578) ----------- ------- Capital share transactions (Note 3) Proceeds from sales Class A shares (Note 2) 92,770,928 311,266,815 Class B shares 47,799,129 134,661,568 Class Y shares 44,981 -- Reinvestment of distributions at net asset value Class A shares 6,532,270 21,345 Class B shares 3,367,500 5,556 Class Y shares 28 2 Payments for redemptions Class A shares (50,167,006) (40,884,846) Class B shares (Note 2) (13,395,937) (6,113,706) ----------- ---------- Increase (decrease) in net assets from capital share transactions 86,951,893 398,956,734 ---------- ----------- Total increase (decrease) in net assets 95,290,637 357,624,253 Net assets at beginning of period 357,627,253 3,000 Net assets at end of period $452,917,890 $357,627,253 ============ ============ *Commencement of operations. See accompanying notes to financial statements.
Notes to financial statements IDS Emerging Markets Fund (Unaudited as to April 30, 1998) 1 Summary of significant accounting policies IDS Emerging Markets Fund (a series of IDS Global Series, Inc.) 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 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, respectively. 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 shares during the ninth calendar year of ownership. 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. Investment in Emerging Markets Portfolio The Fund invests all of its assets in Emerging Markets Portfolio (the Portfolio), a series of World Trust (the Trust), an open-end investment company that has the same objectives as the Fund. Emerging Markets Portfolio seeks to provide shareholders with long-term growth of capital by investing primarily in stocks of companies in developing countries throughout the world that are believed to offer growth potential. The Fund records daily its share of the Portfolio's income, expenses and realized and unrealized gains and losses. The financial statements of the Portfolio are included elsewhere in this report and should be read in conjunction with the Fund's financial statements. The Fund records its investment in the Portfolio at value which is equal to the Fund's proportionate ownership interest in the net assets of the Portfolio. The percentage of the Portfolio owned by the Fund at April 30, 1998 was 99.85%. Valuation of securities held by the Portfolio is discussed in Note 1 of the Portfolio's "Notes to financial statements," which are included elsewhere in this report. 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. 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) allocated from the Portfolio 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 An annual dividend from net investment income, declared and paid at the end of the calendar year, when available, 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. 2 Expenses and sales charges In addition to the expenses allocated from the Portfolio, the Fund accrues its own expenses as follows: The Fund entered into an agreement with American Express Financial Corporation (AEFC) for providing administrative services. 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 0.10% to 0.05% 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 and approved by the board. Under a separate Transfer Agency Agreement, American Express Client Service Corporation (AECSC) maintains shareholder accounts and records. The Fund pays AECSC 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 and commencing on May 9, 1997, the fee is calculated at a rate of 0.10% of the Funds average daily net assets attributable to Class Y shares. Sales charges received by American Express Financial Advisors Inc. for distributing Fund shares were $1,227,579 for Class A and $63,947 for Class B for the six months ended April 30, 1998. During the six months ended April 30, 1998, the Fund's transfer agency fees were reduced by $8,054 as a result of earnings credits from overnight cash balances. 3 Capital share transactions Transactions in shares of capital stock for the periods indicated are as follows: Six months ended April 30, 1998 Class A Class B Class Y Sold 17,894,785 9,271,712 8,736 Issued for reinvested 1,259,840 654,773 5 distributions Redeemed (9,643,240) (2,602,783) -- Net increase 9,511,385 7,323,702 8,741 Period ended Oct. 31, 1997* Class A Class B Class Y Sold 52,439,540 22,629,543 -- Issued for reinvested 4,182 1,089 -- distributions Redeemed (6,806,713) (1,020,138) -- Net increase 45,637,009 21,610,494 -- * Inception date was Nov. 13, 1996.
Notes to financial statements IDS Emerging Markets Fund 4. Financial highlights The table below shows certain important financial information for evaluating the Fund's results. Fiscal period ended Oct. 31, Per share income and capital changes(a) Class A Class B Class Y 1998(c) 1997(b) 1998(c) 1997(b) 1998(c) 1997(b) Net asset value, $5.33 $5.00 $5.29 $5.00 $5.33 $5.00 beginning of period Income from investment operations: Net investment income (loss) (.01) .01 (.03) (.04) (.01) .01 Net gains (both realized .23 .33 .23 .33 .23 .33 and unrealized) Total from investment .22 .34 .20 .29 .22 .34 operations Less distributions: Distributions from net -- (.01) -- -- -- (.01) investment income Distributions from realized gains (.14) -- (.14) -- (.14) -- Total distibutions (.14) (.01) (.14) -- (.14) (.01) Net asset value, $5.41 $5.33 $5.35 $5.29 $5.41 $5.33 end of period Ratios/supplemental data Class A Class B Class Y 1998(c) 1997(b) 1998(c) 1997(b) 1998(c) 1997(b) Net assets, end of period $298 $243 $155 $114 $-- $-- (in millions) Ratio of expenses to 1.87% d 1.90%d,f 2.64%d 2.67%d,f 1.75%d 1.75%d,f average daily net assetse Ratio of net income (loss) (.36%)d .28%d (1.13%)d (.50%)d (.43%)d .33%d to average daily net assets Portfolio turnover rate 69% 87% 69% 87% 69% 87% (excluding short-term securities) Total returng 4.1% 6.8% 3.7% 6.1% 4.1% 6.9% Average brokerage commission $.0015 $.0034 $.0015 $.0034 $.0015 $.0034 rate for the underlying Portfolioh a For a share outstanding throughout the period. Rounded to the nearest cent. b Period from Nov. 13, 1996 (inception date) to Oct. 31, 1997. c Six months ended April 30, 1998 (Unaudited). d Adjusted to an annual basis. e Expense ratio is based on total expense of the Fund before reduction of earning credits on cash balances. f During the period from Nov. 13, 1996 to Oct. 31, 1997, AEFC reimbursed the Fund for certain expenses. Had AEFC not done so, the annual ratios of expenses would have been 1.92%, 2.69% and 1.77% for Class A, B and Y, respectively. g Total return does not reflect payment of a sales charge. h The 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.
Financial statements Statement of assets and liabilities Emerging Markets Portfolio April 30, 1998 Assets (Unaudited) Investments in securities, at value (Note 1) (identified cost $488,584,583) $496,296,281 Cash in bank on demand deposit 750,992 Dividends and accrued interest receivable 178,170 Receivable for investment securities sold 6,809,528 Unrealized appreciation on foreign currency contracts held, at value (Notes 1 and 5) 1,994 U.S. government securities held as collateral (Note 4) 10,323,518 ---------- Total assets 514,360,483 ----------- Liabilities Payable for investment securities purchased 6,655,767 Unrealized depreciation on foreign currency contracts held, at value (Notes 1 and 5) 14,526 Payable upon return of securities loaned (Note 4) 53,910,168 Accrued investment management services fee 13,338 Other accrued expenses 37,833 ------ Total liabilities 60,631,632 ---------- Net assets $453,728,851 ============ See accompanying notes to financial statements.
Financial statements Statement of operations Emerging Markets Portfolio Six months ended April 30, 1998 Investment income (Unaudited) Income: Dividends $ 1,167,429 Interest 1,881,883 Less foreign taxes withheld (95,566) ------- Total income 2,953,746 --------- Expenses (Note 2): Investment management services fee 2,154,672 Compensation of board members 4,594 Custodian fees 256,828 Audit fees 6,750 Other 11,992 ------ Total expenses 2,434,836 Earnings credits on cash balances (Note 2) (10,058) ------- Total net expenses 2,424,778 --------- Investment income (loss) -- net 528,968 ------- Realized and unrealized gain (loss) -- net Net realized gain (loss) on: Security transactions (Note 3) (35,322,147) Foreign currency transactions (2,126,113) ---------- Net realized gain (loss) on investments (37,448,260) Net change in unrealized appreciation (depreciation) on investments and on translation of assets and liabilities in foreign currencies 57,104,332 ---------- Net gain (loss) on investments and foreign currencies 19,656,072 ---------- Net increase (decrease) in net assets resulting from operations $20,185,040 =========== See accompanying notes to financial statements.
Statements of changes in net assets Emerging Markets Portfolio Operations April 30, 1998 For the period Six months ended from Nov. 13, 1996* (Unaudited) to Oct. 31, 1997 Investment income (loss)-- net $ 528,968 $ 1,745,263 Net realized gain (loss) on investments (37,448,260) 8,130,275 Net change in unrealized appreciation (depreciation ) on investments and on translation of assets and liabilities in foreign currencies 57,104,332 (49,497,497) ---------- ----------- Net increase (decrease) in net assets resulting from operations 20,185,040 (39,621,959) Net contributions (withdrawals) from partners 75,085,539 398,076,231 ---------- ----------- Total increase (decrease) in net assets 95,270,579 358,454,272 Net assets at beginning of period 358,458,272 4,000 ----------- ----- Net assets at end of period $453,728,851 $358,458,272 ============ ============ *Commencement of operations. See accompanying notes to financial statements.
Notes to financial statements Emerging Markets Portfolio (Unaudited as to April 30, 1998) 1 Summary of significant accounting policies Emerging Markets Portfolio (the Portfolio) is a series of World Trust (the Trust) and is registered under the Investment Company Act of 1940 (as amended) as a diversified, open-end management investment company. Emerging Markets Portfolio invests primarily in equity securities of issuers in countries with developing or emerging markets. The Declaration of Trust permits the Trustees to issue non-transferable interests in the Portfolio. On Nov. 12, 1996, two funds affiliated with American Express Financial Corporation (AEFC) invested $4,000 in the Portfolio. Operations did not formally commence until Nov. 13, 1996. Significant accounting policies followed by the Portfolio 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. Debt securities are generally traded in the over-the-counter market and are valued at a price deemed best to reflect fair value as quoted by dealers who make markets in these securities or by an independent pricing service. Securities for which market quotations are not readily available are valued at fair value according to methods selected in good faith by the board. 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 Portfolio may buy and 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 Portfolio 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 Portfolio gives up the opportunity of profit if the market price of the security increases. The risk in writing a put option is that the Portfolio 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 Portfolio pays a premium whether or not the option is exercised. The Portfolio 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 Portfolio 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 Portfolio may buy and sell financial futures contracts traded on any U.S. or foreign exchange. The Portfolio also may buy and 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 Portfolio 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 Portfolio 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 Portfolio 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 Portfolio 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 Portfolio and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. The Portfolio is subject to the credit risk that the other party will not complete the obligations of the contract. Federal taxes For federal income tax purposes the Portfolio qualifies as a partnership and each investor in the Portfolio is treated as the owner of its proportionate share of the net assets, income, expenses and realized and unrealized gains and losses of the Portfolio. Accordingly, as a "pass-through" entity, the Portfolio does not pay any income dividends or capital gain distributions. 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 Fees and expenses The Trust, on behalf of the Portfolio, has entered into an Investment Management Services Agreement with AEFC for managing its portfolio. Under this agreement, AEFC determines which securities will be purchased, held or sold. The management fee is a percentage of the Portfolio's average daily net assets in reducing percentages from 1.10% to 1.00% annually. Under the agreement, the Trust also pays taxes, brokerage commissions and nonadvisory expenses, which include custodian fees, audit and certain legal fees, fidelity bond premiums, registration fees for units, office expenses, consultants' fees, compensation of trustees, corporate filing fees, expenses incurred in connection with lending securities of the Portfolio and any other expenses properly payable by the Trust or Portfolio and approved by the board. During the six months ended April 30, 1998, the Portfolio's custodian fees were reduced by $10,058 as a result of earnings credits from overnight cash balances. Pursuant to a Placement Agency Agreement, American Express Financial Advisors Inc. acts as placement agent of the units of the Trust. 3 Securities transactions Cost of purchases and proceeds from sales of securities (other than short-term obligations) aggregated $243,180,295 and $128,631,796, respectively, for the six months ended April 30, 1998. For the same period, the portfolio turnover rate was 69%. Realized gains and losses are determined on an identified cost basis. 4 Lending of portfolio securities At April 30, 1998, securities valued at $50,721,737 were on loan to brokers. For collateral, the Portfolio received $43,586,650 in cash and U.S. government securities valued at $10,323,518. Income from securities lending amounted to $233,065 for the six months ended April 30, 1998. The risks to the Portfolio of securities lending are that the borrower may not provide additional collateral when required or return the securities when due. 5 Foreign currency contracts At April 30, 1998, the Portfolio had entered into foreign currency exchange contracts that obligate the Portfolio to deliver currency at a specified future date. The unrealized appreciation and/or depreciation on these contracts is included in the accompanying financial statements. See "Summary of significant accounting policies." The terms of the open contracts are as follows: Exchange date Currency to Currency to Unrealized Unrealized be delivered be received appreciation depreciation May 1, 1998 31,162,223 4,024,567 $1,559 $ -- Hong Kong Dollar U.S. Dollar May 1, 1998 1,294,498,163 160,230 -- 1,582 Indonesian Rupiah U.S. Dollar May 4, 1998 6,668,699 257,411,771 -- 12,932 U.S. Dollar Thailand Baht May 4, 1998 15,360,382 1,982,803 435 -- Hong Kong Dollar U.S. Dollar May 4, 1998 15,923 13,912 -- 12 Brazilian Real U.S. Dollar Total $1,994 $14,526 Investments in securities Emerging Markets Portfolio April 30, 1998 (Unaudited) (Percentages represent value of investments compared to net assets) Common stocks (87.4%) Issuer Shares Value(a) Argentina (3.2%) Energy (1.4%) Perez Companc 1,060,000 $6,360,636 Utilities -- telephone (1.8%) Telefonica de Argentina ADR 210,000(c) 8,098,125 Brazil (16.3%) Banks and savings & loans (1.5%) Garanti Banking 130,000,000(b) 6,890,000 Beverages & tobacco (1.4%) Companhia Cervejaria Brahma ADR 10,000,000 6,514,230 Chemicals (0.9%) Companhia de Saneamento Basico do Estado de Sao Paulo 17,000,000 3,864,814 Energy (3.1%) Petroleo Brasileiro ADR 548,000(c) 13,867,414 Utilities -- electric (4.4%) Centrais Eletricas Brasileiras ADR 481,000 9,985,608 Companhia Energetica de Brasilia 60,000,000(b) 2,691,360 Light Servicos de Eletricidade 17,995,000 7,237,967 Total 19,914,935 Utilities -- telephone (5.0%) Telecomunicacoes Brasileiras-Telebras ADR145,000 17,662,812 Telecomunicacoes de Minas Gerais Cl B 32,900,000(b) 5,077,457 Total 22,740,269 Chile (1.7%) Multi-industry conglomerates (--%) Quinenco ADR 12,370 127,566 Utilities -- telephone (1.7%) Compania de Telecomunicaciones de Chile ADR 315,000(c) 7,894,687 China (1.1%) Utilities -- electric (1.1%) Beijing Datang Power Generation Cl H 12,390,000(b) $5,039,013 Egypt (1.4%) Building materials & construction Suez Cement GDR 320,000 6,528,000 Greece (5.3%) Banks and savings & loans (3.9%) National Bank of Greece 100,000(b) 17,594,100 Building materials & construction (1.4%) Titan Cement 73,000(b) 6,247,654 Hong Kong (7.0%) Communications equipment & services (1.9%) China Telecom 4,500,000(b,c) 8,540,100 Computers & office equipment (0.6%) Legend Holdings 6,072,000(b) 2,606,710 Industrial equipment & services (0.5%) First Tractor 3,800,000(b) 2,121,920 Multi-industry conglomerates (4.0%) China Merchants Holdings Intl 4,314,000(b,c) 3,425,316 China Resources Enterprises 2,948,000(b) 5,061,716 Shanghai Industrial Holdings 2,762,000(b,c) 9,467,031 Total 17,954,063 Hungary (3.6%) Chemicals (0.8%) Borsod Chemical 100,000(d) 3,740,000 Health care (1.9%) EGIS 63,000(b) 3,286,622 Gedeon Richter 48,000 5,112,000 Total 8,398,622 Utilities -- telephone (0.9%) Matav ADR 135,000(b) 3,982,500 India (1.6%) Automotive & related (0.9%) Tata Engineering & Locomotive GDR 551,000 $4,008,525 Utilities -- telephone (0.7%) Mahanagar Telephone Nigam GDR 218,000 3,389,900 Indonesia (0.3%) Utilities -- telephone (0.3%) Indosat 886,000 1,295,775 Israel (4.9%) Banks and savings & loans (1.9%) Bank Hapoalim 3,200,000(b) 8,573,120 Chemicals (1.6%) Israel Chemical 2,550,000 3,068,415 Makhteshim Chemical Works 520,000(b) 4,405,284 Total 7,473,699 Communications equipment & services (0.9%) Tadiran Telecommunications 100,000 3,885,120 Computers & office equipment (0.5%) Formula Systems 64,711(b) 2,494,894 Malaysia (1.2%) Energy Petronas Gas Berhad 2,208,000(b) 5,342,035 Mexico (13.1%) Beverages & tobacco (4.2%) Coca-Cola Femsa ADR 343,200 5,834,400 Fomento Economico Mexicano Cl B 959,000 7,097,843 Panamerican Beverages Cl A 149,400 5,957,325 Total 18,889,568 Financial services (1.7%) Grupo Financiero Bancomer Cl B 11,500,000(b) 7,942,257 Media (1.0%) Grupo Televisa 115,000(b) 4,715,000 Multi-industry conglomerates (1.9%) Grupo Carso 1,350,000(b) $8,496,170 Paper & packaging (1.9%) Kimberly-Clark de Mexico ADR 345,000 8,401,957 Utilities -- telephone (2.4%) Telefonos de Mexico ADR Cl L 190,000 10,758,750 Peru (1.4%) Metals Compania de Minas Buenaventura ADR 400,000(c) 6,200,000 Russia (7.3%) Communications equipment & services (1.3%) Vimpel-Communications ADR 113,000(b,c) 6,102,000 Energy (2.4%) AO Tatneft ADR 300,000(b,c) 5,812,500 Lukoil Holding ADR 80,000(c) 5,272,560 Total 11,085,060 Utilities -- electric (2.0%) Mosenergo ADR 155,000(b,c) 5,502,500 Unified Energy Systems GDR 11,500,000(b) 3,785,800 Total 9,288,300 Utilities -- telephone (1.6%) Rostelecom ADR 337,000(b) 7,224,438 South Africa (1.6%) Energy equipment & services (1.1%) Sasol 500,000 5,045,500 Metals (0.5%) Anglogold ADR 456,870 2,312,904 South Korea (1.9%) Electronics Samsung Electronics 157,900(b) 8,742,686 Taiwan (6.3%) Computers & office equipment (2.7%) D-Link 2,378,000(b) 6,093,863 Synnex Technology Intl 1,120,000(b) 6,385,568 Total 12,479,431 Electronics (3.0%) Acer Peripherals 1,200,000(b) $2,183,520 Compal Electronics 1,419,000(b) 6,175,204 Taiwan Secom 700,000(b) 2,282,070 Yageo 1,285,000(b) 3,059,071 Total 13,699,865 Textiles & apparel (0.6%) Far Eastern Textile 3,100,000(b) 2,820,380 Thailand (1.7%) Banks and savings & loans Bangkok Bank 1,613,000(b) 4,045,565 Thai Farmers Bank 1,506,000(b) 3,446,180 Total 7,491,745 Turkey (5.2%) Automotive & related (1.2%) Otosan Otomobil Sanayii 7,288,000 5,248,089 Banks and savings & loans (2.4%) Akbank T.A.S. 61,600,000(b) 5,236,000 Yapi Kredit Finance 115,000,000(b) 5,635,000 Total 10,871,000 Multi-industry conglomerates (1.6%) Dogan Sirketler Grubu Holdings 125,000,000(b) 7,125,000 Venezuela (1.3%) Utilities -- telephone Compania Anonima Nacional Telefonos de Venezuela ADR 180,000 6,030,000 Total common stocks (Cost: $391,059,752) $396,458,526 Preferred stocks & other (4.1%) Issuer Shares Value(a) Brazil (3.0%) Companhia Vale do Rio Doce 350,000(b) 8,263,010 Telecomunicacoes do Rio de Janeiro 35,000,000(b) 5,324,900 Total 13,587,910 Philippines (1.0%) Jollibee Foods Warrants 10,142,000 $4,609,539 South Korea (0.1%) Samsung Electronics Rights 12,562 242,499 Taiwan (0.0%) Yageo Rights 99,471(e) -- Total preferred stocks & other (Cost: $16,127,024) $18,439,948 Short-term securities (17.9%) Issuer Annualized Amount Value(a) yield on payable at date of maturity purchase U.S. government agencies (4.6%) Federal Home Loan Mtge Corp Disc Nts 05-20-98 5.43% $700,000 $697,998 05-29-98 5.45 4,500,000 4,481,048 Federal Natl Mtge Assn Disc Nts 05-11-98 5.43 1,700,000 1,697,445 05-13-98 5.41 10,000,000 9,982,000 05-15-98 5.44 4,300,000 4,290,945 Total 21,149,436 Commercial paper (12.0%) Ciesco LP 05-15-98 5.53 1,800,000 1,796,150 Delaware Funding 05-22-98 5.54 3,400,000(f) 3,389,052 Dresdner US Finance 05-21-98 5.53 4,200,000 4,187,143 Fleet Funding 05-29-98 5.54 8,500,000(f) 8,463,573 Glaxo Wellcome 05-05-98 5.52 8,100,000(f) 8,095,050 Goldman Sachs Group 05-15-98 5.54 12,500,000 12,473,215 GTE Funding 06-02-98 5.54 1,100,000 1,094,612 Reed Elsevier 05-11-98 5.54 7,600,000(f) 7,588,389 Toyota Motor Credit 05-19-98 5.55 4,700,000 4,687,028 Xerox 05-01-98 5.55 2,600,000 2,600,000 Total 54,374,212 Letters of credit (1.3%) Bank of America- AES Hawaii 05-14-98 5.53% $1,700,000 $1,696,617 06-05-98 5.53 4,200,000 4,177,542 Total 5,874,159 Total short-term securities (Cost: $81,397,807) $81,397,807 Total investments in securities (Cost: $488,584,583)(g) $496,296,281 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. (b) Non-income producing. (c) Security is partially or fully on loan. See Note 4 to the financial statements. (d) Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the board. (e) Negligible market value. (f) Commercial paper sold within terms of a private placement memorandum, exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." This security has been determined to be liquid under guidelines established by the board. (g) At April 30, 1998, the cost of securities for federal income tax purposes was approximately $488,585,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation......................................$43,318,000 Unrealized depreciation......................................(35,607,000) Net unrealized appreciation...................................$7,711,000 Board members and officers Independent board members and officers Chairman William R. Pearce* of the board 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). 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. Heinz F. Hutter Former president and chief operating officer, Cargill, Inc. Anne P. Jones Attorney and telecommunications consultant. 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. Officer Vice president, Leslie L. Ogg* general counsel President, treasurer and corporate secretary of Board Services and secretary Corporation. Board members and officers associated with AEFC President John R. Thomas* Senior vice president, AEFC. William H. Dudley* Senior advisor to the chief executive officer, AEFC. David R. Hubers* President and chief executive officer, AEFC. Officers associated with AEFC Vice president Peter J. Anderson* Senior vice president, AEFC Treasurer Matthew N. Karstetter* Vice president, AEFC * Interested person as defined by the Investment Company Act of 1940. 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 with countries 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) trees 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 & 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. Foreign investments may be subject to currency fluctuations and political and economic risks of the countries in which the investments are made. 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) gyroscope IDS Stock Fund Invests in a Portfolio comprised primarily of 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 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 of 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 Redemptions and exchanges, National/Minnesota Financial Advisors dividend payments or 800-437-3133 Telephone Transaction reinvestments and automatic Service payment arrangements Mpls./St. Paul area: 671-3800 TTY Service For the hearing impaired 800-846-4852 American Express Automated account information 800-862-7919 Financial Advisors (TouchTone(R) phones only), Easy Access Line including current fund prices and performance, account values and recent account transactions AMERICAN EXPRESS Financial Advisors IDS Emerging Markets Fund IDS Tower 10 Minneapolis, MN 55440-0010 -----END PRIVACY-ENHANCED MESSAGE-----