UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-1653
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IDS Life Variable Annuity Fund A (Individual and Employer)
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(Exact name of registrant as specified in charter)
200 AXP Financial Center, Minneapolis, Minnesota 55474
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(Address of principal executive offices) (Zip code)
Mary Ellyn Minenko - 50607 AXP Financial Center, Minneapolis, MN 55474
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(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 671-3678
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Date of fiscal year end: 12/31
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Date of reporting period: 6/30
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Item 1. Reports to Shareholders.
(logo)
American
Express
Annuities
IDS Life Variable Annuity
Fund A
Invests in a wide range of securities with the objective of long-term capital
appreciation for contract owners.
2003 SEMIANNUAL REPORT
June 30, 2003
(logo)
AMERICAN
EXPRESS
Portfolio Management Q & A
Q: How did IDS Life Variable Annuity Fund A perform for the six-month period
ended June 30, 2003?
A: IDS Life Variable Annuity Fund A (excluding sales charges and fees) rose
14.94% for the six months ended June 30, 2003. The Fund substantially
outperformed the S&P 500 Index, which increased 11.76%.
Q: What factors most affected performance during the semiannual period?
A: The S&P 500 Index gained ground for the six months ended June 30, 2003,
driven primarily by positive investor sentiment toward the outlook for the
economy amid a coalition military victory in Iraq. Those cyclical sectors
expected to benefit most from an upturn in economic growth produced the
strongest returns, namely technology and consumer discretionary. Utilities also
performed well during the semiannual period. Utilities, which historically
provide generous dividend yields, were buoyed by decreasing bond yields and the
passage in May 2003 of dividend tax reform.
The Fund benefited most from effective individual stock selection rather than
from sector allocation. In fact, relative to the S&P 500 the Fund was
significantly underweight both technology and utilities and only moderately
overweight consumer discretionary during the semiannual period. However, several
of the Fund's largest positions performed well including Cendant, Pfizer, Wyeth,
McKesson and Amerisource. Cendant owns real estate, leisure and travel
businesses. The remaining names are in the health care sector. Other stocks that
boosted Fund performance during the period were diversified among a broad
spectrum of sectors. These included media giant AOL Time Warner, fast food
restaurant operator McDonald's, technology leader Sun Microsystems and copper
mining company Freeport McMoran.
Of course, some stocks in the portfolio disappointed. The government-sponsored
enterprise Fannie Mae (Federal National Mortgage Association) declined in value.
So, too, did oil service company Transocean. The Fund continued to hold each of
these securities, as we look at companies' long-term earnings and growth
prospects. The Fund was also negatively affected by not holding the strongly
performing technology company Cisco Systems in its portfolio.
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2 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
Q: What changes did you make to the portfolio and how is it
currently positioned?
A: The most significant change made to the portfolio during the semiannual
period was a shift from a modest underweighting to a moderate overweighting
relative to the S&P 500 in the consumer discretionary sector, with a particular
emphasis on media companies. Media stocks had performed poorly early in the new
year, apparently bottoming about mid-March 2003. Given that this industry tends
to lead out of economic recessions, the Fund used this opportunity to buy or
increase positions on weakness, identifying several compelling companies selling
at bargain prices. The Fund focused on companies with strong brand positions.
For example, the Fund added positions in entertainment & publishing company
Viacom, broadband cable provider Comcast, ad agency Omnicom and satellite TV
provider Echostar. The Fund also established new positions in Disney and
newspaper publishers Tribune and Scripps.
The Fund also trimmed shares in stocks that had reached our target price or had
appreciated significantly. For example, the Fund's holdings in Cendant, Pfizer,
Wyeth, McKesson and McDonald's were reduced.
From a sector perspective, the Fund was most concentrated in health care and
industrials for the semiannual period overall, with more moderate overweightings
relative to the S&P 500 in energy, materials and consumer discretionary. The
Fund was underweight consumer staples, technology, financials,
telecommunications and utilities.
Q: How will you manage the Fund in the coming months?
A: During the second quarter, the S&P 500 Index was up 15.39%, marking the
largest single quarter gain for the Index in four years, a pace that is likely
not sustainable. Investors were enthusiastic about the $350 billion U.S. tax cut
scheduled to go into effect July 1, an accommodative Federal Reserve Board, and
a declining dollar that benefited U.S. companies distributing products and
services overseas. The Fund believes that earnings growth estimates have largely
been calculated into stock prices already, especially in technology.
Given this view, the Fund remains committed to our bottom-up stock selection
process and to a strict buy and sell discipline. We intend to continue selling
stocks as their prices increase and to redeploy profits into stocks that we
believe are undervalued with the potential for growth. The Fund evaluates stocks
based on criteria such as return on capital, profits, cash flow, competitive
dynamics, underlying business value, strong management, industry costs,
government policy toward a particular sector and perhaps, most importantly,
earnings growth rates.
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3 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
The 10 Largest Holdings
Percent Value
(of net assets) (as of June 30, 2003)
Pfizer 6.8% $15,756,809
Citigroup 4.0 9,184,880
Wyeth 4.0 9,132,775
AmerisourceBergen 3.8 8,710,360
Microsoft 3.5 7,951,905
General Electric 3.3 7,514,160
Cardinal Health 3.0 6,892,960
ConocoPhillips 2.9 6,756,840
Cendant 2.9 6,578,712
Procter & Gamble 2.7 6,171,256
For further detail about these holdings, please refer to the section entitled
"Investments in Securities."
(pie chart)
The 10 holdings listed here make up 36.9% of net assets
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4 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
Statement of assets, liabilities and contract owners' equity
IDS Life Variable Annuity Fund A
June 30, 2003 (Unaudited)
Assets
Investments in securities, at value (Note 1)
(identified cost $208,434,928) $228,480,677
Cash in bank on demand deposit 74,399
Dividends and interest receivable 218,346
Receivable for investment securities sold 2,223,127
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Total assets $230,996,549
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Liabilities
Payable for contract terminations $ 69,799
Payable for investment securities purchased 579,313
Mortality and expense risk assurance fee 18,948
Investment management services fee 7,585
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Total liabilities $ 675,645
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Contract owners' equity
Contracts in accumulation period -- 10,521,832 units at $21.39 per unit (Note 5) $225,078,780
Contracts in payment period 5,242,124
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Total contract owners' equity 230,320,904
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Total liabilities and contract owners' equity $230,996,549
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See accompanying notes to financial statements.
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5 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
Statement of operations
IDS Life Variable Annuity Fund A
Six months ended June 30, 2003 (Unaudited)
Investment income (loss) -- net
Income:
Dividends $ 1,325,287
Interest 99,744
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Total income 1,425,031
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Expenses:
Mortality and expense risk assurance fee (Note 2) 1,060,067
Investment management services fee (Note 3) 424,101
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Total expenses 1,484,168
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Investment income (loss) -- net (59,137)
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Realized and unrealized gain (loss) -- net
Net realized gain (loss) on investments (5,538,951)
Net change in unrealized appreciation (depreciation) on investments 35,769,314
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Net gain (loss) on investments 30,230,363
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Net increase (decrease) in contract owners' equity from
operations $30,171,226
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See accompanying notes to financial statements.
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6 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
Statements of changes in contract owners' equity
IDS Life Variable Annuity Fund A
Six months ended Year ended
June 30, 2003 Dec. 31, 2002
(Unaudited)
Operations
Investment income (loss) -- net $ (59,137) $ (368,482)
Net realized gain (loss) on investments (5,538,951) (21,116,599)
Net change in unrealized appreciation (depreciation) on investments 35,769,314 (52,237,449)
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Net increase (decrease) in contract owners' equity from operations 30,171,226 (73,722,530)
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Contract transactions
Net contract purchase payments (Note 2) 427,408 1,090,246
Repayment of temporary withdrawals 68 9,135
Net transfers from (to) fixed annuities (3,310,003) (9,603,120)
Actuarial adjustment for mortality assurance on annuities in payment period -- 1,018,970
Contract termination payments and temporary withdrawals (9,321,550) (22,329,946)
Annuity payments (296,922) (679,180)
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Net increase (decrease) from contract transactions (12,500,999) (30,493,895)
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Net increase (decrease) in contract owners' equity 17,670,227 (104,216,425)
Contract owners' equity at beginning of period 212,650,677 316,867,102
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Contract owners' equity at end of period $230,320,904 $ 212,650,677
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See accompanying notes to financial statements.
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7 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
Notes to Financial Statements
IDS Life Variable Annuity Fund A
(Unaudited as to June 30, 2003)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
IDS Life Variable Annuity Fund A (the Fund) is organized as a segregated asset
account of IDS Life Insurance Company (IDS Life) under Minnesota law and is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Fund's assets are held for the exclusive
benefit of its variable annuity contract owners and are not chargeable with any
liabilities arising from the other business activities of IDS Life. The
significant accounting policies followed by the Fund are summarized as follows:
Use of estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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 year. Actual results could differ from those estimates.
Investments in securities
Securities traded on national securities exchanges are valued at the last quoted
sales price on the principal exchange on which traded. Securities traded in the
over-the-counter market are valued at the mean of the last quoted bid and asked
price. Short-term securities that mature in 60 days or less are valued at
amortized cost. Those 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. Short-term securities originally purchased with maturities of more than
60 days but which currently mature in 60 days or less are valued on an amortized
cost basis using the market value or approximate market value on the 61st day
before maturity. Bonds and other securities are valued at fair value as
determined by the Board of Managers when market quotations are not readily
available. Determination of fair value involves, among other things, references
to market indexes, matrices and data from independent brokers.
Security transactions are accounted for on the date the securities are purchased
and sold. Dividend income is recorded on the ex-dividend date.
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8 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
Option contracts
To produce incremental earnings, protect gains and facilitate buying and selling
of securities for investments, the Fund may buy and sell put and call options
and write covered call options on portfolio securities. The risk in writing a
call option is that the Fund gives up the opportunity for 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 being unable 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 when the option transaction expires or closes. 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.
During the six months ended June 30, 2003, the Fund did not buy or sell any put
or call options or write any covered call or put options. There were no option
contracts outstanding as of June 30, 2003.
Futures contracts
To gain exposure to or protect itself from market changes, the Fund may buy and
sell stock index futures contracts and related options. Risks of entering into
futures contracts and related options include the possibility of an illiquid
market and that a change in the value of the contract or option may not
correlate with the 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.
During the six months ended June 30, 2003, the Fund did not buy or sell stock
index futures contracts and related options. There were no stock index futures
contracts outstanding as of June 30, 2003.
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9 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
Foreign currency translations and foreign currency contracts
Securities and other assets and liabilities denominated in foreign currencies
are translated daily into U.S. dollars. 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. It is not practicable to identify that
portion of realized and unrealized gain or loss arising from changes in the
exchange rates from the portion arising from changes in the market value of
investments.
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 its contract obligations.
There were no forward foreign currency exchange contracts outstanding as of June
30, 2003.
Variable payout
Net assets allocated to contracts in the payout period are periodically compared
to a computation which uses the Annuity 2000 Basic Mortality Table and which
assumes future mortality improvement. The assumed investment return is 5% unless
the annuitant elects otherwise, in which case the rate would be 3.5%, as
regulated by the laws of the respective states. The mortality risk is fully
borne by IDS Life Insurance Company and may result in additional amounts being
transferred into the variable annuity account by IDS Life Insurance Company to
cover greater longevity of annuitants than expected. Conversely, if amounts
allocated exceed amounts required, transfers may be made to the insurance
company.
Federal income taxes
IDS Life is taxed as a life insurance company. The Fund is treated as part of
IDS Life for federal income tax purposes. Under current federal income tax law,
no taxes are payable with respect to any income of the Fund.
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10 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
2. MORTALITY AND EXPENSE RISK ASSURANCE FEE AND SALES CHARGES
IDS Life makes contractual assurances to the Fund that possible future adverse
changes in administrative expenses and mortality experience of the annuitants
and beneficiaries will not affect the Fund. The mortality and expense risk
assurance fee paid to IDS Life is computed daily and is equal on an annual basis
to 1% of the average daily net assets of the Fund.
Charges by IDS Life for its sales and administrative services applicable to the
variable annuity contracts amounted to $17,805 for the six months ended June 30,
2003 and $45,869 for the year ended Dec. 31, 2002. Such charges are not an
expense of the Fund. They are deducted from contract purchase payments and are
not included in the net contract purchase payments to the Fund.
3. INVESTMENT MANAGEMENT SERVICES AGREEMENT
The Fund has an agreement with American Express Financial Corporation (AEFC) to
manage its portfolio. Under an Investment Management Services Agreement, AEFC
determines which securities will be purchased, held or sold. The management fee
is computed daily and is equal on an annual basis to 0.40% of the average daily
net assets of the Fund.
In addition to paying its own management fee, the Fund also pays all brokerage
clearing fees and charges in the purchase and sale of assets. Brokerage charges
are paid to AEFC for reimbursement of charges incurred in the purchase and sale
of foreign securities.
4. SECURITY TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other than short-term
obligations) aggregated $102,027,775 and $126,959,832, respectively, for the six
months ended June 30, 2003. Net realized gains and losses on investments are
determined on an identified cost basis.
Brokerage clearing fees paid to brokers affiliated with AEFC were $390 for the
six months ended June 30, 2003.
5. ACCUMULATION UNITS
The changes in number of outstanding units applicable to contracts in the
accumulation period were as follows:
Six months ended Year ended
June 30, 2003 Dec. 31, 2002
Units outstanding at beginning of period 11,166,900 12,676,242
Additions for contract purchase payments and repayments 22,179 52,664
Net transfers from (to) fixed annuities (182,289) (484,776)
Deductions for contract terminations and withdrawals (484,958) (1,077,230)
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Units outstanding at end of period 10,521,832 11,166,900
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11 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
6. FINANCIAL HIGHLIGHTS
The table below shows certain important financial information for evaluating the
Fund's results.
Fiscal period ended Dec. 31, 2003(e) 2002 2001 2000 1999
Accumulation unit value at beginning of period $18.61 $24.54 $30.54 $32.26 $24.53
Income from investment operations(a):
Net investment income (loss) (.01) (.03) (.10) (.20) (.20)
Net gains (losses) (both realized and unrealized) 2.79 (5.90) (5.90) (1.52) 7.93
Total from investment operations 2.78 (5.93) (6.00) (1.72) 7.73
Accumulation unit value at end of period $21.39 $18.61 $24.54 $30.54 $32.26
Total return(b) 14.94%(d) (24.16%) (19.65%) (5.33%) 31.51%
Ratios/supplemental data
Total contract owners' equity at end of period (000 omitted) $230,321 $212,651 $316,867 $429,472 $493,966
Ratio of operating expenses to average daily net assets 1.40%(c) 1.40% 1.40% 1.40% 1.40%
Ratio of net investment income (loss) to average daily net assets (.06%)(c) (.14%) (.39%) (.59%) (.71%)
Portfolio turnover rate 51% 195% 76% 85% 5%
Notes to financial highlights
(a) Per accumulation unit value amounts have been calculated using average
accumulation units values outstanding method.
(b) Total return does not reflect payment of a sales charge.
(c) Adjusted to an annual basis.
(d) Not annualized.
(e) Six months ended June 30, 2003 (Unaudited).
The foregoing table pertains to accumulation units only. There are two kinds of
units. As long as contract owners are paying into the Fund they are called
"accumulation" units. When contract owners begin to receive the annuity, they
change to "annuity" units.
The value of an annuity unit (assuming a 3.5% investment rate) was $6.40 as of
June 30, 2003, $5.66 as of Dec. 31, 2002, $7.73 as of Dec. 31, 2001, $9.95 as of
Dec. 31, 2000 and $10.88 as of Dec. 31, 1999. The value of an annuity unit
(assuming a 5% investment rate) was $3.84 as of June 30, 2003, $3.43 as of Dec.
31, 2002, $4.75 as of Dec. 31, 2001, $6.20 as of Dec. 31, 2000 and $6.88 as of
Dec. 31, 1999.
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12 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
Investments in Securities
IDS Life Variable Annuity Fund A
June 30, 2003 (Unaudited)
(Percentages represent value of investments compared to net
assets)
Common stocks (90.2%)
Issuer Shares Value(a)
Aerospace & defense (2.3%)
Boeing 27,400 $940,368
Lockheed Martin 23,900 1,136,923
Rockwell Automation 34,800 829,632
United Technologies 33,100 2,344,473
Total 5,251,396
Banks and savings & loans (0.5%)
U.S. Bancorp 49,400 1,210,300
Beverages & tobacco (5.1%)
Altria Group 112,800 5,125,632
Anheuser-Busch 22,200 1,133,310
PepsiCo 125,000 5,562,500
Total 11,821,442
Chemicals (1.9%)
Dow Chemical 80,800 2,501,568
Lyondell Chemical 91,900 1,243,407
Praxair 10,300 619,030
Total 4,364,005
Communications equipment & services (0.5%)
EchoStar Communications Cl A 34,600(b) 1,197,852
Computer software & services (3.5%)
Microsoft 310,500 7,951,905
Computers & office equipment (4.3%)
Affiliated Computer Services Cl A 24,200(b) 1,106,666
Dell Computer 71,600(b) 2,288,336
First Data 81,600 3,381,504
Sun Microsystems 688,700(b) 3,168,020
Total 9,944,526
Electronics (2.0%)
Analog Devices 19,400(b) 675,508
Intel 120,400 2,502,394
Taiwan Semiconductor
Mfg ADR 147,800(c) 1,489,824
Total 4,667,726
Energy (5.5%)
ConocoPhillips 123,300 6,756,840
Exxon Mobil 149,900 5,382,909
FirstEnergy 16,000 615,200
Total 12,754,949
Energy equipment & services (2.3%)
Schlumberger 45,300 2,154,921
Transocean 145,800 3,203,226
Total 5,358,147
Financial services (7.8%)
Capital One Financial 11,600 570,488
Citigroup 214,600 9,184,880
Fannie Mae 78,200 5,273,808
MBNA 38,200 796,088
Merrill Lynch 30,900 1,442,412
Morgan Stanley 16,900 722,475
Total 17,990,151
Health care (12.9%)
Amgen 34,300(b) 2,297,414
Boston Scientific 15,400(b) 940,940
Medtronic 35,700 1,712,529
Pfizer 461,400 15,756,809
Wyeth 200,500 9,132,775
Total 29,840,467
Health care services (7.5%)
AmerisourceBergen 125,600 8,710,360
Cardinal Health 107,200 6,892,960
McKesson 45,200 1,615,448
Total 17,218,768
Household products (4.7%)
Avon Products 35,400 2,201,880
Kimberly-Clark 45,200 2,356,728
Procter & Gamble 69,200 6,171,256
Total 10,729,864
See accompanying notes to investments in securities.
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13 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
Common stocks (continued)
Issuer Shares Value(a)
Industrial equipment & services (1.6%)
Caterpillar 44,200 $2,460,172
Illinois Tool Works 18,300 1,205,055
Total 3,665,227
Insurance (2.5%)
ACE 14,200(c) 486,918
American Intl Group 55,600 3,068,008
Chubb 19,200 1,152,000
Travelers Property Casualty Cl A 63,900 1,016,010
Total 5,722,936
Leisure time & entertainment (4.0%)
AOL Time Warner 187,000(b) 3,008,830
Mattel 110,000 2,081,200
Viacom Cl B 93,100(b) 4,064,746
Total 9,154,776
Media (4.2%)
Comcast Cl A 63,547(b) 1,917,848
Comcast Special Cl A 64,600(b) 1,862,418
Disney (Walt) 122,000 2,409,500
Omnicom Group 20,000 1,434,000
Scripps (EW) Cl A 9,050 802,916
Tribune 23,700 1,144,710
Total 9,571,392
Metals (1.4%)
Freeport-McMoRan
Copper & Gold Cl B 101,100 2,476,950
Inco 32,000(b,c) 676,480
Total 3,153,430
Multi-industry conglomerates (7.1%)
American Standard 15,400(b) 1,138,522
Cendant 359,100(b) 6,578,712
General Electric 262,000 7,514,160
Grainger (WW) 12,000 561,120
Tyco Intl 33,100(c) 628,238
Total 16,420,752
Restaurants & lodging (0.9%)
McDonald's 89,800 1,980,988
Retail (6.1%)
Best Buy 33,700(b) 1,480,104
Circuit City Stores 92,900 817,520
Dollar General 61,600 1,124,816
Home Depot 161,000 5,332,320
Kroger 71,600(b) 1,194,288
Target 16,100 609,224
Wal-Mart Stores 63,400 3,402,678
Total 13,960,950
Transportation (0.9%)
Expeditors Intl of Washington 29,200 1,011,488
United Parcel Service Cl B 17,900 1,140,230
Total 2,151,718
Utilities -- telephone (0.8%)
BellSouth 66,600 1,773,558
Total common stocks
(Cost: $187,903,154) $207,857,225
Bond (0.1%)
Issuer Coupon Principal Value(a)
rate amount
Government obligation & agency
U.S. Treasury
05-15-16 7.25% $250,000 $332,481
Total bond
(Cost: $240,313) $332,481
See accompanying notes to investments in securities.
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14 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
Short-term securities (8.8%)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
U.S. government agencies (7.8%)
Federal Home Loan Bank Disc Nt
08-01-03 1.14% $900,000 $899,103
Federal Natl Mtge Assn Disc Nts
07-02-03 1.15 2,400,000 2,399,847
07-02-03 1.18 900,000 899,946
07-09-03 1.16 4,700,000 4,698,737
07-25-03 0.95 5,000,000 4,996,701
07-28-03 0.95 4,100,000 4,096,971
Total 17,991,305
Short-term securities (continued)
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
Commercial paper (1.0%)
Greyhawk Funding
07-10-03 1.25% $800,000(d) $799,722
Variable Funding Capital
07-01-03 1.35 1,500,000(d) 1,499,944
Total 2,299,666
Total short-term securities
(Cost: $20,291,461) $20,290,971
Total investments in securities
(Cost: $208,434,928)(e) $228,480,677
Notes to investments in securities
(a) Securities are valued by procedures described in Note 1 to the financial
statements.
(b) Non-income producing.
(c) Foreign security values are stated in U.S. dollars. As of June 30, 2003,
the value of foreign securities represented 1.4% of net assets.
(d) 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.
(e) At June 30, 2003, the cost of securities for federal income tax purposes
was $208,434,928 and the aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized appreciation $23,444,049
Unrealized depreciation (3,398,300)
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Net unrealized appreciation $20,045,749
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15 IDS LIFE VARIABLE ANNUITY FUND A -- SEMIANNUAL
IDS Life Insurance Company
70100 AXP Financial Center
Minneapolis, MN 55474
americanexpress.com
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(logo)
AMERICAN
EXPRESS
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S-6445 U (8/03)
Item 2. Code of Ethics. Not applicable pursuant to SEC Release No. IC-25914
(January 27, 2003).
Item 3. Audit Committee Financial Expert. Not applicable pursuant to SEC
Release No. IC-25914 (January 27, 2003).
Item 4. Principal Accountant Fees and Services. Not applicable pursuant to
SEC Release No. IC-25915 (January 28, 2003).
Items 5-6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies. Not applicable.
Item 8. [Reserved]
Item 9. Controls and Procedures.
(a) The registrant's Principal Executive Officer and Principal
Financial Officer have evaluated the registrant's disclosure
controls and procedures within 90 days of this filing and have
concluded that the registrant's disclosure controls and
procedures by the registrant in this Form N-CSR was recorded,
processed, summarized, and reported timely.
(b) At the date of filing this Form N-CSR, the registrant's Principal
Executive Officer and Principal Financial Officer are aware of no
significant changes in the registrant's internal controls or in
other factors that could significantly affect these controls
subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and
material weaknesses.
Item 10. Exhibits.
(a) Not applicable pursuant to SEC Release No. IC-25914 (January
27, 2003).
(b) Separate certification for the Registrant's principal
executive officer and principal financial officer, as required by
Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a)
under the Investment Company Act of 1940, are attached as
EX.99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) IDS Life Variable Annuity Fund A
By /s/ Timothy V. Bechtold
-----------------------
Timothy V. Bechtold
President and Principal Executive Officer
Date Aug. 27, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /s/ Timothy V. Bechtold
-----------------------
Timothy V. Bechtold
President and Principal Executive Officer
Date Aug. 27, 2003
By /s/ Jeffrey P. Fox
------------------
Jeffrey P. Fox
Treasurer and Principal Financial Officer
Date Aug. 27, 2003