PAGE
IDS New Dimensions Fund
1995 semiannual report
(icon of) building with columns
The goal of IDS New Dimensions Fund, Inc. is long-term growth of
capital. The fund invests primarily in common stocks of companies showing
potential for significant growth and operating in areas where economic
or technological changes are occurring.
Distributed by American Express Financial Advisors Inc.
(icon of) building with columns
Fast-track stocks
What type of stock has been the driving force behind the dramatic
increases posted by U.S. and foreign stock markets in recent years? The
answer is growth stocks -- that is, stocks of companies that have a track
record of increasing their business and profits at a rapid pace. These
companies, some large and well-known, others smaller and newly
discovered, form the foundation of IDS New Dimensions Fund. The fund
looks for companies from around the world that not only have a history
of continuous growth, but are poised to continue growing due to their
superior management, marketing innovation and/or technological advances.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 6
Notes to financial statements 9
Investments in securities 19
Directors and officers 24
IDS mutual funds 25
To our shareholders
(Picture of William Pearce)
William R. Pearce
President of the fund
Gordon M. Fines
Portfolio manager
From the president
As I indicated in the fund's annual report, a new agreement between the
fund and American Express Financial Corporation was approved by
shareholders in November 1994. The new agreement became effective when
the fund began offering multiple classes of shares on March 20, 1995.
The advantage of offering more than a single class of shares is that
investors may choose how they wish to pay sales charges. These charges
compensate your American Express financial advisor (formerly called your
IDS planner), who is committed to providing you with outstanding
PAGE
services.
Adding new classes of mutual fund shares does make the presentation of
financial information in this report more complex. However, we will
continue our effort to make the reports easier to read and understand.
Meanwhile, your advisor is available to answer your questions.
Sincerely,
William R. Pearce
(Picture of Gordon Fines)
Portfolio manager
From the portfolio manager
Although punctuated by some jarring interruptions, an overall positive
trend for growth stocks emerged during the past six months. The upturns
were often led by stocks of technology and telecommunications companies
-- two groups that comprised a healthy portion of the portfolio and led
IDS New Dimensions Fund's advance during the October 1994 through March
1995 period. (Please note that a capital gain payout last December
reduced the fund's net asset value by a like amount.)
As they have for some time, growth stocks followed an up-and-down pattern
during the period, as concerns about higher interest rates kept the stock
market as a whole off balance at times. This was particularly true last
fall, when a nice gain in October was quickly followed by a sharp decline
in November.
Rates level off
December marked a turning point for the stock market and the fund. After
being on an upward trend almost since the beginning of the year, long-
term interest rates finally leveled off and, over the next several weeks,
even declined at times. That lent support to the market and ultimately
resulted in a strong stock rally in February and March, during which the
fund advanced nearly 7%.
This fund was well-structured to take advantage of the upturn because of
its substantial exposure to stocks of technology and telecommunications
companies, which were often at the forefront of the market's advance.
We also enjoyed good performance from our health-care holdings, as well
as large, consumer-products companies with strong international business
operations.
Environment good for growth
With recent data suggesting that economic growth may be slowing down,
growth stocks would appear to be in good position to lead potential
progress by the stock market. That's because such stocks represent
companies that have demonstrated an ability to generate healthy profits
even without the benefit of a robust economy. This makes growth stocks
more attractive to investors at this stage of the economic cycle.
Technology and telecommunications companies continue to stand out in that
respect, and they remain the largest portion of the portfolio.
As for the market, given the rapid run-up during the first quarter of
1995 stocks may need to catch their breath for a time before resuming
positive momentum. As has been the case for more than a year, the
direction of long-term interest rates probably will play the major role
PAGE
in the market's performance in the months ahead. If rates come down later
in the year, as we think is likely, that should provide a meaningful
boost for stocks in general, as well as for shareholders of the fund.
Sincerely,
Gordon M. Fines
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
March 31, 1995 $14.27
Sept. 30, 1994 $14.06
Increase $ 0.21
Distributions
Oct. 1, 1994 - March 31, 1995
From income $ 0.12
From capital gains $ 0.50
Total distributions $ 0.62
Total return** 6.3%
Class B
March 20, 1995 - March 31, 1995
(All figures per share)
Net asset value (NAV)
March 31, 1995 $14.27
March 20, 1995* $14.18
Increase $ 0.09
Distributions
March 20, 1995 - March 31, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return** --%
Class Y
March 20, 1995 - March 31, 1995
(All figures per share)
Net asset value (NAV)
March 31, 1995 $14.27
March 20, 1995* $14.18
Increase $ 0.09
Distributions
March 20, 1995 - March 31, 1995
From income $ --
From capital gains $ --
Total distributions $ --
Total return** --%
* Commencement of operations.
** The prospectus discusses the effects of the sales charge on the
various classes.
*** Not presented -- as short period of operations may not be indicative
of annual results.
PAGE
IDS New Dimensions Fund, Inc.
(Pie chart)
The ten holdings listed here make up 21.56% of the fund's net assets.
Your fund's ten largest holdings
<TABLE>
<CAPTION>
________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Mar. 31, 1995)
________________________________________________________________________________________
<S> <C> <C>
Intel 2.91% $144,287,500
The world's number one semiconductor manufacturer, Intel produces
microcomputer components, modules and systems.
Citicorp 2.57 127,500,000
The parent of Citibank, the largest bank in the U.S., it has a
substantial worldwide corporate and retail banking presence.
Motorola 2.21 109,250,000
A leading supplier of semiconductors and two-way radios, paging
equipment and cellular mobile telephone systems.
Cisco Systems 2.16 106,750,000
A leading designer and builder of devices that link personal
computers for application in the fast-growing business network market.
American International Group 2.10 104,250,000
A major, worldwide insurance organization, providing property,
casualty, marine, life and financial guarantee insurance.
Pfizer 2.08 102,900,000
A leading producer of pharmaceuticals, hospitals products,
animal health items, non-prescription medications and
specialty chemicals.
Computer Association 1.92 95,000,000
Computer Association is the largest vendor of non-microcomputer
products in the software industry.
General Electric 1.91 94,718,750
General Electric is a diversified company with interest in
manufacturing, broadcasting (NBC), financial services and technology.
Caterpillar 1.91 94,562,500
Caterpillar Inc., is the dominant global manufacturer of
construction equipment, with over 40% worldwide market share.
Royal Dutch Petroleum 1.79 88,800,000
Royal Dutch Petroleum Co., which includes Royal Dutch (the Dutch
version) and Shell Transport (the English version) is a major oil company.
</TABLE>
PAGE
Statement of assets and liabilities
IDS New Dimensions Fund, Inc.
March 31, 1995
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
(Unaudited)
Investments in securities, at value (Note 1)
(identified cost $4,066,364,433) $4,933,051,570
Cash in bank on demand deposit 16,479,313
Dividends and accrued interest receivable 5,817,339
Receivable for investment securities sold 72,770,608
Receivable for foreign currency contracts held, at value (Notes 1 and 7) 17,996,291
U.S. government securities held as collateral (Note 5) 19,432,421
_____________________________________________________________________________________________________________
Total assets 5,065,547,542
_____________________________________________________________________________________________________________
Liabilities
____________________________________________________________________________________________________________
Payable for investment securities purchased 73,245,608
Payble for foreign currency contracts held at value (Notes 1 and 7) 17,955,323
Payable upon return of securities loaned (Note 5) 19,432,421
Accrued investment management services fee 896,160
Accrued distribution fee and service fees 211,883
Accrued transfer agency fee 238,435
Accrued administrative services fee 72,945
Other accrued expenses 526,953
_____________________________________________________________________________________________________________
Total liabilities 112,579,728
_____________________________________________________________________________________________________________
Net assets applicable to oustanding capital stock $4,952,967,814
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value; $ 3,471,443
Additional paid-in capital 4,088,402,253
Undistributed net investment income 12,644,794
Accumulated net realized loss (Note 1 and 8) (18,278,781)
Unrealized appreciation (Note 7) 866,728,105
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding capital stock $4,952,967,814
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $3,686,908,585
Class B $ 8,212,454
Class Y $1,257,846,775
_____________________________________________________________________________________________________________
Net asset value per share of outstanding capital stock: Class A shares 258,412,258 $ 14.27
Class B shares 575,689 $ 14.27
Class Y shares 88,156,302 $ 14.27
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
PAGE
Financial statements
Statement of operations
IDS New Dimensions Fund, Inc.
Six months ended March 31, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
(Unaudited)
Income:
Interest $ 17,102,317
Dividends (net of foreign taxes withheld of $88,217) 26,687,712
_____________________________________________________________________________________________________________
Total income 43,790,029
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 13,863,548
Distribution fee 1,309,588
Transfer agency fee 3,502,663
Service fee 211,202
Administrative services fee 72,945
Compensation of directors 17,439
Compensation of officers 24,409
Custodian fees 119,957
Postage 232,339
Registration fees 227,492
Reports to shareholders 93,809
Audit fees 15,250
Administrative 22,610
Other 56,750
_____________________________________________________________________________________________________________
Total expenses 19,770,001
_____________________________________________________________________________________________________________
Investment income -- net 24,020,028
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized loss on security and foreign currency transactions
(including gain of $13,828 from foreign currency transactions) (Note 3) (9,151,616)
Net realized loss on closed or expired option contracts written (Note 6) (711,754)
_____________________________________________________________________________________________________________
Net realized loss on investments and foreign currency (9,863,370)
Net change in unrealized appreciation or depreciation 274,935,248
_____________________________________________________________________________________________________________
Net gain on investments and foreign currency 265,071,878
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $ 289,091,906
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
PAGE
Financial statements
Statements of changes in net assets
IDS New Dimensions Fund, Inc.
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________
Operations and distributions March 31, 1995 Sept. 30, 1994
_____________________________________________________________________________________________________________
<S> <C> <C>
Six months ended Year ended
(Unaudited)
Investment income -- net $ 24,020,028 $ 29,201,190
Net realized gain (loss) on investments and foreign currency (9,863,370) 166,293,405
Net change in unrealized appreciation or depreciation 274,935,248 (222,741,514)
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations 289,091,906 (27,246,919)
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (37,816,170) (17,668,942)
Net realized gain
Class A (161,781,539) (162,990,687)
Excess distribution of realized gain
Class A (13,799) --
_____________________________________________________________________________________________________________
Total distributions (199,611,508) (180,659,629)
_____________________________________________________________________________________________________________
Capital share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 767,776,432 1,370,588,852
Class B shares 8,238,771 --
Class Y shares 1,264,946,859 --
Reinvestment of distributions at net asset value
Class A shares 197,515,590 178,695,921
Payments for redemptions
Class A shares (1,656,200,873) (588,638,959)
Class B shares (Note 2) (1,448) --
Class Y shares (15,233,758) --
_____________________________________________________________________________________________________________
Increase in net assets from capital share transactions 567,041,573 960,645,814
_____________________________________________________________________________________________________________
Total increase in net assets 656,521,971 752,739,266
Net assets at beginning of period 4,296,445,843 3,543,706,577
_____________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income of
$12,644,794 and $26,440,936) $4,952,967,814 $4,296,445,843
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
PAGE
Notes to financial statements
IDS New Dimensions Fund, Inc.
(Unaudited as to March 31, 1995)
______________________________________________________________________________
1. Summary of significant accounting policies
The fund is registered under the Investment Company Act of 1940 (as amended)
as a diversified, open-end management investment company. The fund offers
Class A, Class B and Class Y shares. Class A shares are sold with a front-end
sales charge. Class B shares, which the fund began offering on March 20, 1995,
may be subject to a contingent deferred sales charge and such shares
automatically convert to class A after eight years. Class Y shares, which the
fund also began offering on March 20, 1995, have no sales charge and are
offered only to certain institutional investors.
All classes of shares have identical voting, dividend, liquidation and other
rights, and the same terms and conditions, except that the level of
distribution fee, transfer agency fee and service fee (class specific
expenses) differ among classes. Income, expenses (other than class specific
expenses) and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
Significant accounting policies followed by the fund are summarized below:
Valuation of securities
All securities are valued at the close of each business day. Securities traded
on national securities exchanges or included in national market systems are
valued at the last quoted sales price; securities for which market quotations
are not readily available are valued at fair value according to methods
selected in good faith by the board of directors. Determination of fair value
involves, among other things, reference to market indexes, matrixes and data
from independent brokers. Short-term securities maturing in more than 60 days
from the valuation date are valued at the market price or approximate market
value based on current interest rates; those maturing in 60 days or less are
valued at amortized cost.
Options transactions
In order to produce incremental earnings, protect gains, and facilitate buying
and selling of securities for investment purposes, the fund may buy or write
options traded on any U.S. or foreign exchange or in the over-the-counter
market where the completion of the obligation is dependent upon the credit
standing of the other party. The fund also may buy and sell put and call
options and write covered call options on portfolio securities and may write
cash-secured put options. The risk in writing a call option is that the fund
gives up the opportunity of profit if the market price of the security
increases. The risk in writing a put option is that the fund may incur a loss
if the market price of the security decreases and the option is exercised. The
risk in buying an option is that the fund pays a premium whether or not the
option is exercised. The fund also has the additional risk of not being able
to enter into a closing transaction if a liquid secondary market does not
exist.
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
PAGE
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 interest rate futures contracts traded on any U.S. or
foreign exchange. The fund also may buy or write put and call options on these
futures contracts. Risks of entering into futures contracts and related
options include the possibility that there may be an illiquid market and that
a change in the value of the contract or option may not correlate with changes
in the value of the underlying securities.
Upon entering into a futures contract, the fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The fund recognizes a realized gain or loss when the contract is
closed or expires.
Foreign currency translations and
foreign currency contracts
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars at the closing rate of exchange.
Foreign currency amounts related to the purchase or sale of securities and
income and expenses are translated at the exchange rate on the transaction
date. The effect of changes in foreign exchange rates on realized and
unrealized security gains or losses is reflected as a component of such gains
or losses. In the statement of operations, net realized gains or losses from
foreign currency transactions may arise from sales of foreign currency, closed
forward contracts, exchange gains or losses realized between the trade date
and settlement dates on securities transactions, 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 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
PAGE
from their ultimate characterization for federal income tax purposes. The
effect on dividend distributions of certain book-to-tax differences is
presented as "excess distributions" in the statement of changes in net assets.
Also, due to the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or realized
gains (losses) were recorded by the fund.
Dividends to shareholders
An annual dividend declared and paid at the end of the calendar year from net
investment income is reinvested in additional shares of the fund at net asset
value or payable in cash. Capital gains, when available, are distributed along
with the income dividend.
Other
Security transactions are accounted for on the date securities are purchased
or sold. Dividend income is recognized on the ex-dividend date and interest
income including level-yield amortization of premium and discount, is accrued
daily.
______________________________________________________________________________
2. Expenses and sales charges
Under terms of a prior agreement which ended March 19, 1995, the fund paid
American Express Financial Corporation a fee for managing its investments,
recordkeeping and other specified services. The fee was a percentage of the
fund's average daily net assets consisting of a group asset charge in reducing
percentages from 0.46% to 0.32% annually on the combined net assets of all
non-money market funds in the IDS MUTUAL FUND GROUP and an individual annual
asset charge of 0.23% of average daily net assets. The fee was adjusted upward
or downward by a performance incentive adjustment based on the fund's average
daily net assets over a rolling 12-month period as measured against the change
in the Lipper Growth Fund Index. The maximum adjustment is 0.12% of the fund's
average daily net assets after deducting 1% from the performance difference.
If the performance difference was less than 1%, the adjustment would have been
zero. The adjustment decreased the fee by $109,876 for the six months ended
March 31, 1995.
Also under terms of the prior agreement, the fund paid American Express
Financial Advisors Inc. a distribution fee at an annual rate of $6 per
shareholder account and paid American Express Fiancial Corporation a transfer
agency fee at an annual rate of $15 per shareholder account. The transfer
agency fee was reduced by earnings on monies pending shareholder redemptions.
Effective March 20, 1995, when the fund began offering multiple classes of
shares, the fund entered into agreements with American Express Financial
Corporation for managing its portfolio, providing administrative services and
serving as transfer agent as follows: Under its Investment Management Services
Agreement, American Express Financial Corporation determines which securities
will be purchased, held or sold. The management fee is a percentage of the
fund's average daily net assets in reducing percentages from 0.6% to 0.5%
annually. The performance incentive adjustment remains unchanged from the
prior agreement. Under an Administrative Services Agreement, the fund pays
American Express Financial Corporation for administration and accounting
services at a percentage of the fund's average daily net assets in reducing
percentages from 0.05% to 0.03% annually.
PAGE
Under a separate Transfer Agency Agreement, American Express Financial
Corporation maintains shareholder accounts and records. The fund pays American
Express Financial Corporation an annual fee per shareholder account for this
service as follows:
o Class A $15
o Class B $16
o Class Y $15
Also effective March 20, 1995, the fund entered into agreements with American
Express Financial Advisors Inc. for distribution and shareholder servicing-
related services as follows: Under the Distribution Agreement, the fund pays a
distribution fee at an annual rate of 0.75% of the fund's average daily net
assets attributable to Class B shares for distribution-related services.
Under a Shareholder Service Agreement, the fund pays a fee for service
provided to shareholders by financial advisors and other servicing agents. The
fee is calculated a rate of 0.175% of the fund's average daily net assets
attributable to Class A and Class B shares.
American Express Financial Corporation will assume and pay any expenses
(except taxes and brokerage commissions) that exceed the most
restrictive applicable state expense limitation.
Sales charges by American Express Financial Advisors Inc. for distributing
fund shares were $8,947,596 for Class A and $59 for Class B for the six months
ended March 31, 1995.
The fund has a retirement plan for its independent directors. Upon retirement,
directors receive monthly payments equal to one-half of the retainer fee for
as many months as they served as directors up to 120 months. There are no
death benefits. The plan is not funded but the fund recognizes the cost of
payments during the time the directors serve on the board. The retirement plan
expense amounted to $20,972 for the six months ended March 31, 1995.
______________________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $1,555,056,496 and $1,272,913,214, respectively, for
the six months ended March 31, 1995. Realized gains and losses are determined
on an identified cost basis.
Brokerage commissions paid to brokers affiliated with American Express
Financial Corporation were $575,289 for the six months ended March 31, 1995.
______________________________________________________________________________
4. Capital share transactions
Transactions in shares of capital stock for the periods indicated are as
follows:
<TABLE>
<CAPTION>
________________________________________________________________________________________
Six months ended March 31, 1995 Year ended
9/30/94
Class A Class B* Class Y* Class A
<S> <C> <C> <C> <C>
________________________________________________________________________________________
PAGE
Sold 55,542,078 575,790 89,222,000 96,121,314
Issued for reinvested
distributions 14,863,100 -- -- 12,444,004
Redeemed (117,656,291) (101) (1,065,698) (41,274,919)
________________________________________________________________________________________
Net increase (decrease) (47,251,113) 575,689 88,156,302 67,290,399
*Commencement of operations was March 20, 1995.
</TABLE>
_______________________________________________________________________________
5. Lending of portfolio securities
At March 31, 1995, securities valued at $18,948,480 were on loan to brokers.
For collateral, the fund received U.S. government securities valued at
$19,432,421. Income from securities lending amounted to $97,592 for the six
months ended March 31, 1995. The risks to the fund of securities lending are
that the borrower may not provide additional collateral when required or
return the securities when due.
______________________________________________________________________________
6. Option contracts written
The number of contracts and premium amounts associated with option contracts
written is as follows:
<TABLE>
<CAPTION>
Six months ended March 31, 1995
<S> <C> <C> <C> <C>
________________________________________________________________________
Puts Calls
Contracts Premium Contracts Premium
_______________________________________________________________________
Balance Sept. 30, 1994 -- $ -- -- $ --
Opened 4,750 205,905 250 18,249
Closed (2,500) (89,997) (250) (18,249)
Expired (1,250) (67,910) -- --
Exercised (1,000) (47,998) -- --
________________________________________________________________________
Balance March 31, 1995 -- $ -- -- $ --
________________________________________________________________________
</TABLE>
______________________________________________________________________________
7. Foreign currency contracts
At March 31, 1995, the fund had entered into four foreign currency exchange
contracts that obligate the fund to deliver currency at a specified future
date. The net unrealized appreciation of $40,968 on these contracts are
included in the accompanying financial statements. The terms of the open
contracts are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
U.S. Dollar value U.S. Dollar value
Currency to be as of Currency to be as of
Exchange date delivered March 31, 1995 received March 31, 1995
_____________________________________________________________________________________________________
PAGE
April 5, 1995 971,683,585 $11,184,298 11,191,804 $11,191,804
Japanese Yen U.S. Dollar
April 5, 1995 3,793,674 3,793,674 5,232,425 3,795,738
U.S. Dollar Deutsche Mark
April 6, 1995 1,146,400 1,146,400 1,616,235 1,172,459
U.S. Dollar Deutsche Mark
April 7, 1995 1,830,951 1,830,951 2,531,326 1,836,290
U.S. Dollar Deutsche Mark
___________ ___________
$17,955,323 $17,996,291
</TABLE>
______________________________________________________________________________
8. Capital loss carryover
For federal income tax purposes, the fund has a capital loss carryover of
approximately $18,019,000 at March 31, 1995, that will expire in 2003 if not
offset by subsequent capital gains.
______________________________________________________________________________
9. Financial highlights
The table below shows certain important financial information for evaluating
the fund's results.
<TABLE>
<CAPTION>
Fiscal period ended Sept. 30,
Per share income and capital changes*
1995** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Classes
A B Y
Net asset value, $14.06 $14.18 $14.18 $14.87 $12.57 $12.01 $9.45 $10.45
beginning of period
Income from investment operations:
Net investment income .08 -- .01 .09 .06 .06 .15 .24
Net gains (losses) (both .75 .09 .08 (.18) 3.01 1.13 3.59 (.52)
realized and unrealized)
Total from investment .83 .09 .09 (.09) 3.07 1.19 3.74 (.28)
operations
Less distributions:
Dividends from net (.12) -- -- (.07) (.04) (.14) (.22) (.19)
investment income
Distributions from (.50) -- -- (.65) (.73) (.49) (.96) (.53)
realized gains
Total distributions (.62) -- -- (.72) (.77) (.63) (1.18) (.72)
Net asset value, $14.27 $14.27 $14.27 $14.06 $14.87 $12.57 $12.01 $9.45
end of period
Ratios/supplemental data
1995** 1994 1993 1992 1991 1990
PAGE
Classes
A B Y
Net assets, end of period $3,687 $8 $1,258 $4,296 $3,544 $2,253 $1,553 $815
(in millions)
Ratio of expenses to .88%*** 1.45%*** .78%*** .90% .92% .95% .90% .88%
average daily net assets
Ratio of net income to 1.06%*** .70%*** 1.34%*** .75% .51% .57% 1.65% 2.43%
average daily net assets
Portfolio turnover rate 32% 32% 32% 48% 60% 75% 81% 91%
(excluding short-term
securities)
Total return# 6.3%+ .6% .6% (.7%) 25.1% 9.6% 43.3% (2.8%)
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended March 31, 1995 for Class A and commencement of operations
March 20, 1995 for Class B and Y (Unaudited).
***Adjusted to an annual basis.
+For the fiscal period ended March 31, 1995, the annualized total return is 12.6%.
#Total return does not reflect payment of a sales charge.
/TABLE
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS New Dimensions Fund, Inc. (Percentages represent value of
March 31, 1995 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Common stocks (86.3%)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Aerospace & defense (1.1%)
Raytheon 400,000 $ 29,150,000
United Technologies 400,000 27,650,000
______________
Total 56,800,000
_____________________________________________________________________________________________________________________________
Airlines (0.3%)
AMR 210,000 (b) 13,597,500
_____________________________________________________________________________________________________________________________
Automotive & related (0.3%)
Eaton 250,000 13,562,500
_____________________________________________________________________________________________________________________________
Banks and savings & loans (3.6%)
Citicorp 3,000,000 127,500,000
First Chicago 1,000,000 50,125,000
______________
Total 177,625,000
_____________________________________________________________________________________________________________________________
Beverages & tobacco (1.6%)
Coca-Cola 1,410,000 79,665,000
_____________________________________________________________________________________________________________________________
Chemicals (1.1%)
Dow Chemical 750,000 54,750,000
_____________________________________________________________________________________________________________________________
Communications equipment (3.6%)
DSC Communications 800,000 (b) 26,050,000
General Instrument 400,000 (b) 13,900,000
Motorola 2,000,000 109,250,000
Scientific-Atlanta 500,000 11,687,500
Tellabs 300,000 (b) 17,475,000
______________
Total 178,362,500
_____________________________________________________________________________________________________________________________
Computers & office equipment (15.7%)
Cabletron Systems 600,000 (b) 26,925,000
Cisco Systems 2,800,000 (b) 106,750,000
Compaq Computer 1,400,000 (b) 48,300,000
Computer Assn Intl 1,600,000 95,000,000
Computer Sciences 325,000 (b) 16,046,875
First Data 220,000 11,412,500
Hewlett-Packard 550,000 66,206,250
Intl Business Machines 600,000 49,125,000
Microsoft 950,000 (b) 67,568,750
Oracle Systems 2,400,000 (b) 75,000,000
See accompanying notes to investments in securities.
PAGE
Parametric Technology 1,180,000 (b,d) 47,200,000
Reynolds & Reynolds Cl A 1,900,000 52,250,000
Silicon Graphics 800,000 (b) 28,400,000
Sybase Software 300,000 (b) 12,000,000
Xerox 650,000 76,293,750
______________
Total 778,478,125
_____________________________________________________________________________________________________________________________
Electronics (5.7%)
Applied Materials 460,000 (b) 25,357,500
Intel 1,700,000 144,287,500
Linear Technology 450,000 25,200,000
LSI Logic 300,000 (b) 15,750,000
Maxim Integrated Products 85,000 (b) 3,102,500
Sensormatic Electric 372,600 10,432,800
Teradyne 700,000 (b) 29,050,000
Vishay Intertechnology 450,000 25,256,250
Xilinx 50,000 (b) 3,387,500
______________
Total 281,824,050
_____________________________________________________________________________________________________________________________
Energy (3.4%)
Amoco 1,375,000 87,484,375
Exxon 770,000 51,397,500
Mobil 350,000 32,418,750
______________
Total 171,300,625
_____________________________________________________________________________________________________________________________
Energy equipment & services (0.3%)
Fluor 260,000 12,545,000
_____________________________________________________________________________________________________________________________
Financial services (4.9%)
Dean Witter 1,400,000 57,050,000
First Financial Management 1,000,000 72,250,000
Household Intl 680,000 29,580,000
MBNA 2,000,000 58,000,000
State Street Boston 800,000 25,500,000
______________
Total 242,380,000
_____________________________________________________________________________________________________________________________
Food (1.4%)
Archer-Daniels 80,000 1,490,000
ConAgra 1,604,900 53,162,313
IBP 485,700 15,845,962
______________
Total 70,498,275
_____________________________________________________________________________________________________________________________
Health care (7.9%)
Abbott Laboratories 800,000 28,500,000
Amgen 700,000 (b) 47,162,500
Forest Laboratories 700,000 (b) 33,337,500
Johnson & Johnson 960,000 57,120,000
Medtronic 1,000,000 69,375,000
Merck 200,000 8,525,000
Pfizer 1,200,000 102,900,000
Schering-Plough 620,000 46,112,500
______________
PAGE
Total 393,032,500
_____________________________________________________________________________________________________________________________
Health care services (1.6%)
HBO 25,000 1,087,500
Health Management Associates 500,000 (b) 14,437,500
United Healthcare 1,420,000 66,385,000
______________
Total 81,910,000
_____________________________________________________________________________________________________________________________
Household products (4.2%)
Duracell 900,000 40,275,000
Gillette 1,000,000 81,625,000
Intl Flavors & Fragrances 100,000 5,162,500
Procter & Gamble 1,200,000 79,500,000
______________
Total 206,562,500
_____________________________________________________________________________________________________________________________
Industrial equipment & services (2.5%)
Caterpillar 1,700,000 94,562,500
WMX Technologies 1,000,000 27,500,000
______________
Total 122,062,500
_____________________________________________________________________________________________________________________________
Industrial transportation (2.1%)
CSX 1,000,000 78,750,000
Federal Express 400,000 (b) 27,050,000
______________
Total 105,800,000
_____________________________________________________________________________________________________________________________
Insurance (2.4%)
Amer Intl Group 1,000,000 104,250,000
General Re 100,000 13,200,000
______________
Total 117,450,000
_____________________________________________________________________________________________________________________________
Leisure time & entertainment (1.6%)
Marriott Intl 600,000 20,850,000
Mirage Resorts 750,000 (b) 21,000,000
Promus 1,000,000 (b) 37,500,000
______________
Total 79,350,000
_____________________________________________________________________________________________________________________________
Media (2.2%)
Reader's Digest Assn 280,000 13,475,000
Tele-Communications Cl A 1,000,000 (b) 21,000,000
Time Warner 700,000 26,425,000
Viacom Cl B 1,100,000 (b) 49,225,000
______________
Total 110,125,000
_____________________________________________________________________________________________________________________________
Metals (1.1%)
Aluminum Co Amer 175,000 7,240,625
Nucor 815,000 45,843,750
______________
Total 53,084,375
_____________________________________________________________________________________________________________________________
Multi-industry conglomerates (3.5%)
Alco Standard 400,000 29,000,000
PAGE
General Electric 1,750,000 94,718,750
Manpower 1,500,000 48,187,500
______________
Total 171,906,250
_____________________________________________________________________________________________________________________________
Paper & packaging (0.3%)
Crown Cork & Seal 300,000 (b) 13,162,500
_____________________________________________________________________________________________________________________________
Restaurants & lodging (2.9%)
Hilton Hotels 320,000 23,720,000
Hospitality Franchise System 850,000 27,200,000
McDonald's 2,400,000 81,900,000
Wendy's Intl 750,000 12,281,250
______________
Total 145,101,250
_____________________________________________________________________________________________________________________________
Retail (3.7%)
Albertson's 700,000 22,575,000
CUC Intl 700,000 (b) 27,212,500
Home Depot 1,100,000 48,675,000
Nordstrom 250,000 10,187,500
Office Depot 1,000,000 (b) 24,375,000
Pep Boys-Manny Moe & Jack 800,000 24,800,000
Wal-Mart Stores 1,000,000 25,500,000
______________
Total 183,325,000
_____________________________________________________________________________________________________________________________
Utilities - gas (1.3%)
Enron 2,000,000 66,000,000
_____________________________________________________________________________________________________________________________
Utilities - telephone (2.0%)
AirTouch Communications 1,800,000 (b) 49,050,000
U S WEST 1,200,000 48,000,000
______________
Total 97,050,000
_____________________________________________________________________________________________________________________________
Foreign (4.0%)(c)
British Airways 400,000 26,300,000
Ericsson Cl B ADR 420,000 25,961,250
Nokia Preferred 330,000 24,255,000
Northern Telecom 650,000 24,618,750
Royal Dutch Petroleum 740,000 88,800,000
Schlumberger 160,000 9,540,000
______________
Total 199,475,000
_____________________________________________________________________________________________________________________________
Total common stocks
(Cost: $3,413,238,917) $4,276,785,450
_____________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________
Preferred stock & other (0.2%)
_____________________________________________________________________________________________________________________________
Issuer Shares Value(a)
_____________________________________________________________________________________________________________________________
Jan Bell
Warrants 2,689 (e) $ --
PAGE
SAP 9,350 7,271,084
_____________________________________________________________________________________________________________________________
Total preferred stock & other
(Cost: $7,357,429) $ 7,271,084
_____________________________________________________________________________________________________________________________
Bond (0.5%)
_____________________________________________________________________________________________________________________________
Issuer Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
U.S. government obligation
U.S. Treasury 4.25% 1995 $25,000,000 $ 24,672,500
_____________________________________________________________________________________________________________________________
Total bond
(Cost: $24,545,942) $ 24,672,500
_____________________________________________________________________________________________________________________________
Options purchased (0.2%)
_____________________________________________________________________________________________________________________________
Issuer Number Exercise Expiration Value(a)
of contracts price date
_____________________________________________________________________________________________________________________________
Motorola 10,000 $ 60 April 1995 $ 5,500,000
S&P 500 7,750 495 June 1995 5,425,000
_____________________________________________________________________________________________________________________________
Total options purchased
(Cost: $7,635,873) $10,925,000
_____________________________________________________________________________________________________________________________
Short-term securities (12.7%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
U.S. government agency (0.2%)
Federal Home Loan Bank Disc Note
05-05-95 6.25% $ 8,800,000 $8,745,454
_____________________________________________________________________________________________________________________________
Commercial paper (12.1%)
AI Credit
04-06-95 6.30 6,100,000 6,094,640
04-10-95 6.01 10,000,000 9,985,050
Amer General
04-25-95 6.00 5,800,000 5,776,916
Amgen
05-19-95 6.08 12,000,000 11,900,578
AON
05-15-95 6.08 8,300,000 8,238,930
Associates
North Amer
04-11-95 6.09 7,000,000 6,987,003
AT&T Capital
05-09-95 6.06 2,810,000 2,792,203
Avco Financial Services
05-05-95 6.10 8,200,000 8,153,224
05-09-95 6.16 5,100,000 5,065,151
PAGE
05-23-95 6.06 5,000,000 4,956,667
BBV Finance (Delaware)
04-04-95 6.35 2,600,000 2,598,480
BellSouth Telecommunications
04-27-95 6.02 6,000,000 5,974,043
Beneficial
04-10-95 6.10 5,000,000 4,990,835
05-03-95 6.08 10,700,000 10,637,164
05-09-95 6.13 8,900,000 8,839,786
BOC Group
04-20-95 6.00 5,200,000 5,183,616
Cargill
04-19-95 6.01 5,500,000 5,483,582
04-25-95 6.00 6,900,000 6,872,538
Chevron Transport
04-13-95 6.08 6,700,000 (f) 6,683,703
05-30-95 6.10 5,000,000 (f) 4,948,764
Ciesco LP
04-17-95 6.10 11,300,000 11,264,005
CIT Group Holdings
05-10-95 6.11 11,900,000 11,817,701
05-16-95 6.08 10,000,000 9,922,130
Coca-Cola
04-05-95 6.00 15,000,000 14,990,067
06-01-95 6.12 12,000,000 11,870,420
Commercial Credit
04-07-95 5.95 6,100,000 6,093,951
04-20-95 6.02 12,500,000 12,460,549
04-21-95 6.00 5,000,000 4,983,444
Commerzbank U.S. Finance
04-06-95 6.03 7,700,000 7,693,594
04-26-95 6.00 8,000,000 7,966,833
Consolidated Railway
04-04-95 6.14 4,200,000 (f) 4,197,350
CPC Intl
04-12-95 5.99 6,100,000 (f) 6,088,835
05-26-95 6.05 10,000,000 (f) 9,902,385
Dresdner U.S. Finance
06-09-95 6.28 5,250,000 5,185,994
07-07-95 6.36 7,000,000 6,879,759
Fleet Funding
05-08-95 6.11 11,500,000 (f) 11,428,492
Ford Motor Credit
04-06-95 6.15 6,200,000 6,194,218
05-11-95 6.12 5,900,000 5,858,459
General Electric Capital Services
04-11-95 6.08 11,100,000 11,079,765
07-06-95 6.41 3,900,000 3,833,692
Goldman Sachs Group
04-06-95 6.08 10,800,000 10,790,970
Harris Trust
05-15-95 6.14 8,100,000 8,037,295
Household Finance
04-19-95 6.00 5,000,000 4,985,075
Kredietbank North Amer Finance
05-01-95 6.18 7,000,000 6,962,864
Lincoln Natl
05-30-95 6.12 5,000,000 (f) 4,948,764
PAGE
Merrill Lynch
04-21-95 6.07 5,800,000 5,780,602
04-24-95 6.04 15,700,000 15,639,817
Metlife Funding
05-02-95 6.03 3,400,000 3,382,463
Morgan Stanley Group
04-12-95 6.04 6,100,000 6,088,817
Motorola
04-19-95 6.01 13,700,000 13,659,105
04-24-95 6.00 5,300,000 5,279,819
Natl Australia Funding
(Delaware)
04-18-95 6.07 10,000,000 9,967,329
Natl Bank Detroit
Canada
04-03-95 6.00 10,000,000 9,996,683
04-28-95 6.00 3,400,000 3,384,776
05-30-95 6.10 7,300,000 7,225,196
Norfolk Southern
06-12-95 6.26 6,800,000 (f) 6,713,544
Paccar Financial
04-03-95 5.98 2,600,000 2,599,141
05-22-95 6.09 1,900,000 1,883,034
05-23-95 6.09 5,300,000 5,251,822
06-01-95 6.13 3,900,000 3,857,887
Paribas Finance
04-27-95 5.97 1,500,000 1,493,532
Penney (JC) Funding
04-17-95 6.11 4,700,000 4,685,907
PepsiCo
04-27-95 6.00 9,200,000 9,160,399
05-02-95 6.03 2,000,000 (f) 1,989,667
Pfizer
04-07-95 6.00 5,800,000 (f) 5,794,229
Pitney Bowes Credit
05-11-95 6.14 5,000,000 4,964,795
Reed Elsevier
04-10-95 6.25 4,100,000 (f) 4,093,262
04-17-95 6.19 7,000,000 (f) 6,979,610
05-08-95 6.16 8,250,000 (f) 8,196,122
St. Paul Companies
04-18-95 5.99 3,900,000 (f) 3,889,024
Sandoz
05-02-95 6.08 5,000,000 4,960,180
Siemens
04-26-95 6.03 7,000,000 6,970,979
06-06-95 6.17 6,100,000 6,028,818
Smithkline Beecham
04-28-95 6.02 4,800,000 4,778,490
05-11-95 6.03 5,700,000 5,662,127
Southern California Gas
08-07-95 6.51 8,000,000 (f) 7,817,967
08-14-95 6.45 6,000,000 (f) 5,856,067
08-16-95 6.45 5,600,000 (f) 5,463,687
Southwestern Bell Capital
04-12-95 6.01 15,300,000 15,272,043
04-17-95 6.13 4,800,000 (f) 4,786,019
Sysco
PAGE
04-13-95 6.09 1,300,000 (f) 1,297,020
04-18-95 6.12 7,300,000 (f) 7,276,543
Toyota Motor Credit
04-07-95 6.06 9,500,000 9,490,500
Unilever Capital
06-05-95 6.20 5,300,000 (f) 5,239,076
USAA Capital
04-11-95 6.00 6,900,000 6,888,557
U S WEST Communications
04-13-95 6.09 5,000,000 4,989,018
05-02-95 6.04 5,400,000 5,372,100
______________
Total 597,705,257
_____________________________________________________________________________________________________________________________
Letter of credit (0.1%)
Bank of Amer-
Hyundai Motor Finance
05-12-95 6.20 7,000,000 6,946,825
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $613,586,272) $ 613,397,536
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $4,066,364,433)(g) $4,933,051,570
_____________________________________________________________________________________________________________________________
Notes to investments in securities
_____________________________________________________________________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the financial statements.
(b) Presently non-income producing.
(c) Foreign security values are stated in U.S. dollars.
(d) Security is partially or fully on loan. See Note 5 to the financial statements.
(e) Presently negligible market value.
(f) Commercial paper sold within terms of a private placement memorandum, exempt from registration under
Section 4(2) of the Securities Act of 1933, as amended, and may be sold only to dealers in that
program or other "accredited investors." This security has been determined to be liquid under
guidelines established by the board of directors.
(g) At March 31, 1995, the cost of securities for federal income tax purposes was approximately
$4,081,151,000 and the approximate aggregate gross unrealized appreciation and depreciation
based on that cost was:
Unrealized appreciation $894,398,000
Unrealized depreciation (27,497,000)
_________________________________________________________________________________________________
Net unrealized appreciation $866,901,000
_________________________________________________________________________________________________
/TABLE
PAGE
Directors and officers
Directors and officers of the fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested directors who are officers and/or employees of American
Express Financial Corporation
William H. Dudley
Executive vice president, American Express Financial Corporation.
David R. Hubers
President and chief executive officer, American Express Financial
Corporation.
John R. Thomas
Senior vice president, American Express Financial Corporation.
_____________________________________________________________________
Officers who also are officers and or/employees of American Express
Financial Corporation
PAGE
Peter J. Anderson
Vice president of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Other officer
Leslie L. Ogg
Vice president, general counsel and secretary of all funds in
the IDS MUTUAL FUND GROUP.
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposit (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income.
Secondary objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher rated,
PAGE
lower risk bond categories, or the equivalent, and in government bonds.
(icon of) greek column
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the timely
payment of principal and interest by the U.S. government, its agencies
and instrumentalities. Seeks a high level of current income and
safety of principal consistent with its type of investments.
(icon of) federal building
Tax-exempt income investments
These funds provide tax-free income by investing in municipal bonds.
The income is generally free from federal income tax. Risk varies
by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities
to provide income to residents of each respective state that is
exempt from federal, state and local income taxes. (New York
is the only state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk bond
categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
PAGE
the market value of the fund's shares.
(icon of) shield with eagle head
Growth and income investments
These funds focus on securities of medium to large, well-established
companies that offer long-term growth of capital and reasonable income
from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20%
of its assets in the U.S. market.
(icon of) three flags
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income
investments and money market securities to seek a maximum total
return through a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of
capital and income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
IDS Utilities Income Fund
PAGE
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high current
income and, secondarily, to benefit from the growth potential offered
by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy, Aggressive Equity Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy.
These companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
PAGE
Invests primarily in companies with significant growth
potential due to superiority in technology, marketing or management.
The fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic companies
that explore for, mine and process or distribute gold and other
precious metals. This is the most aggressive and most speculative
IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your financial
advisor or writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534. Read it carefully before you invest or send money.
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota:
800-437-3133
Mpls./St. Paul area:
671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone phones only), including current
fund prices and performance, account values and recent account
PAGE
transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS New Dimensions Fund
IDS Tower 10
Minneapolis, MN 55440-0010