<PAGE>
PAGE 1
IDS Tax-Exempt Bond Fund
1995 annual report
(prospectus enclosed)
(Icon of) shield with Greek column
The goal of IDS Tax-Exempt Bond Fund, Inc. is to earn as much
current income exempt from federal income taxes as possible with
only modest risk to the shareholder's investment by investing
primarily in investment-grade bonds and other debt securities.
(This annual report includes a prospectus that describes in detail
the Fund's objective, investment policies, risks, sales charges,
fees and other matters of interest. Please read the prospectus
carefully before you invest or send money.)
Distributed by
American Express
Financial Advisors Inc.
<PAGE>
PAGE 2
(Icon of) shield with Greek column
Double-barreled benefit
Most of the public facilities that we take for granted -- schools,
water and sewer systems, highways, government buildings -- are, in
effect, largely funded by loans from citizens. These loans take
the form of state and local government bonds (called
"munincipals"), which are bought by investors, including Tax-Exempt
Bond Fund. The government gets the funding it needs, while the
bond-buyers, including Fund shareholders, get ongoing interest
income. But there's another, bigger benefit with munincipals:
Investors pay no federal taxes on the income they generate and
potentially no state taxes.
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PAGE 3
Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the Fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the Fund in detail.
1995 annual report
From the president 4
From the portfolio manager 4
Ten largest holdings 6
Making the most of your Fund 7
Long-term performance 8
Independent auditors' report 9
Financial statements 10
Notes to financial statements 13
Investments in securities 22
IDS mutual funds 33
Federal income tax information 36
1995 prospectus
The Fund in brief 3p
Goal 3p
Types of Fund investments 3p
Manager and distributor 3p
Portfolio manager 3p
Alternative purchase arrangements 3p
Sales charge and Fund expenses 4p
Performance 6p
Financial highlights 6p
Total returns 8p
Yield 10p
Investment policies and risks 11p
Facts about investments and their risks 11p
Alternative investment option 14p
Valuing Fund shares 14p
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PAGE 4
How to purchase,exchange or redeem shares 15p
Alternative purchase arrangements 15p
How to purchase shares 18p
How to exchange shares 20p
How to redeem shares 20p
Reductions and waivers of the sales charge 25p
Special shareholder services 29p
Services 29p
Quick telephone reference 29p
Distributions and taxes 30p
Dividend and capital gain distributions 30p
Reinvestments 31p
Taxes 32p
How to determine the correct TIN 35p
How the Fund is organized 36p
Shares 36p
Voting rights 36p
Shareholder meetings 37p
Board members and officers 37p
Investment manager and transfer agent 39p
Distributor 40p
About American Express Financial Corporation 42p
General information 42p
Appendices 43p
Description of investment-grade bond ratings 43p
1996 Federal tax information 44p
Descriptions of derivative instruments 46p
(This annual report is not part of the prospectus)
<PAGE>
PAGE 5
To our shareholders
(Photo of) William R. Pearce President of the Fund
(Photo of) Terry L. Seierstad Portfolio manager
From the president
If you're an experienced investor, you know that 1995 was an
unusually strong year for the U.S. financial markets. Perhaps just
as important, you also know that history shows that bull markets
don't last forever. Though they're often unpredictable, declines -
whether they're brief or long-lasting, moderate or substantial -
are always a possibility.
That fact reinforces the need for investors to review periodically
their long-term goals and assess whether their investment program
remains on track to achieving them. Your quarterly investment
statements are one part of that monitoring process. The other is a
meeting with your American Express financial advisor. That becomes
even more important if there's a major change in your financial
situation or in the financial markets.
William R. Pearce
From the portfolio manager
After enduring one of the worst years in history during 1994, the
bond market staged a spectacular comeback over the past 12 months.
Against that positive backdrop, IDS Tax-Exempt Bond Fund turned in
a cmmensurately strong performance, generating a total return of
approximately 21% (Class A shares) for the December 1994 through
November 1995 fiscal year.
As if on cue for this reporet, long-term interest rates began
declining near the end of 1994. Just as higher rates depress bond
values, falling rates enhance them. By January 1995, the bond
market was well on its way to a remarkable rally that, apart from a
modest summer slump, conttinued through November.
Favorable factors
For most of the fiscal year, the decline in interest rates stemmed
from two interrelated factors: a slowdown in economic growth and an
ongoing low rate of inflation. Later in the period, hope for a
blanced federal budget to lend further support to the bond market
during the fall. <PAGE>
PAGE 6
The only real hurdle that donfronted the municipal bond market was
talk of tax reform - specifically, the proposal of a flat tax,
which, if it were ever implemented, would make munincipal bonds
less attractive and, therefore, drive down their prices. At times
during the fiscal year, concern about that possibility (a rather
remote one in our view) fostered some selling of munincipal bonds,
pushing prices lower. In any event, should true tax reform ever
become a reality, we think it's unlikely that any change would come
about before 1997.
Aggressive strategy pays off
There was one key to the Fund's performance during the 12 months,
it was our strategy - based on our expectation that interest rates
would fall - to emphasize bonds with longer maturities. The longer
its maturity, the greater a bond's price-sensitivity to interest-
rate changes. Thus, when rates fell, the bonds in our portfolio
enjoyed a greater-than-average price increase. This ultimately
resulted in a higher fund net asset value.
A second factor that benefited the Fund was our decision to replace
some bonds that weren't likely to benefit much from declining
interest rates with bonds that would. Again, our falling-rate
forecast proved to be accurate, and Fund performance was enhanced.
While a long-term decline in interest rates is good news for bond
investors because it drives up the values of their holdings, there
is something of a trade-off involved. That's because the amount of
interest generated by recently issued bonds eventually declines as
well. For the Fund, that resulted in slightly lower income
payments as the year progressed. To mitigate that factor, we added
some lower-rated (though still investment grade) bonds, which pay
higher interest than most others in the portfolio.
Given the bond market's remarkable run-up in 1995, we think it's
appropriate to note that a repeat of that performance in 1996 would
be unprecedented. That said, we remain positive on the market and
currently are holding to the longer-than-average maturity strategy
that proved to be so productive over the past period.
Terry L. Seierstad <PAGE>
PAGE 7
Class A
12-month performance
(all figures per share)
Net asset value (NAV)
Nov. 30, 1995 $4.06
Nov. 30, 1994 $3.54
Increase $0.52
Distributions
Dec. 1, 1994 - Nov. 30, 1995
From income $0.21
From capital gains $ --
Total distributions $0.21
Total return** +21.1%***
Class B
March 20, 1995 - Nov. 30, 1995
(all figures per share)
Net asset value (NAV)
Nov. 30, 1995 $4.06
March 20, 1995* $3.88
Increase $0.18
Distributions
March 20, 1995* - Nov. 30, 1995
From income $0.14
From capital gains $ --
Total distributions $0.14
Total return** +8.6%***
Class Y
March 20, 1995-Nov. 30,1995
(all figures per share)
Net asset value (NAV)
Nov. 30, 1995 $4.06
Mar 20, 1995 $3.88
Increase $0.18
Distributions
March 20, 1995* - Nov. 30, 1995
From income $0.16
From capital gains $ --
Total distributions $0.16
Total return** +9.2%***
* Inception date.
** The prospectus discusses the effects of sales charges, if any,
on the various classes.
*** The total return is a hypothetical investment in the Fund with
all distributions reinvested.
<PAGE>
PAGE 8
Your Fund's ten largest holdings
<TABLE>
<CAPTION>
(pie chart) The ten holdings listed here make up 18.28% of the Fund's net assets
_____________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Nov. 30, 1995)
_____________________________________________________________________________________
<S> <C> <C>
San Antonio Texas Water Refunding Revenue Bonds
6.40% 2007 2.32% $27,332,500
Delaware County Pennsylvania Industrial Development
Authority Pollution Control Refunding Revenue Bonds
Philadelphia Electric Company
7.375% 2021 2.17 25,553,847
Illinois Public Building Commission of Chicago Building
Revenue Bonds Board of Education of Chicago Series 1990A
6.50% 2018 2.16 25,378,825
Georgia Municipal Electric Authority
Special Obligation Bonds Project #1
4th Crossover Series X
6.50% 2020 1.91 22,398,826
San Antonio Texas Electric & Gas Systems
Refunding Revenue Bonds Series 1989
6.50% 2012 1.79 21,063,800
Eastern North Carolina Municipal Power Agency System
Refunding Revenue Bonds Series 1989A
6.50% 2024 1.73 20,293,400
Washington Issaquah School District #411 King County
Unlimited Tax General Obligation Refunding Bonds 1992
6.375% 2008 1.58 18,610,467
District of Columbia General Obligation Bonds
Series 1994B Zero Coupon 1.58 18,561,582
Dormitory Authority New York City Court Facility Lease
Revenue Bonds Series 1993A
5.25% 2021 1.57 18,420,800
New Jersey Turnpike Authority Revenue Bonds Series 1991C
6.50% 2005 1.47 17,326,880
</TABLE>
<PAGE>
PAGE 9
Making the most of your Fund
Average annual total return
(as of Nov. 30, 1995)
Class A
1 year 5 years 10 years
+15.01% +6.75% 8.09%
Total returns for Class A, Class B and Class Y for the period from
March 20, 1995 to Nov. 30, 1995 were +3.67%,+3.57% and +9.18%,
respectively. March 20, 1995 was the inception date for Class B
and Class Y. Total return for Class A is shown for comparative
purposes. The performance of Class B and Class Y will vary from
the performance of Class A based on differences in sales charges
and fees.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures for Class A and Class B reflect the effect of the maximum
5% sales charge. This was a period of widely fluctuating security
prices. Past performance is no guarantee of future results.
Build your assets systematically
One of the best ways to invest in the Fund is by dollar-cost
averaging -- a time-tested strategy that can make market
fluctuations work for you. To dollar-cost average, simply invest a
fixed amount of money regularly. You'll automatically buy more
shares when the Fund's share price is low, fewer shares when it is
high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low.
<PAGE>
PAGE 10
(arrow in table pointing to September) and fewer shares when the
per share market price is high.
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
<PAGE>
Page 11
Your Fund's long-term performance
Three ways to benefit from a mutual Fund:
o your shares increase in value when the Fund's investments do well
o you receive capital gains when the gains on investments sold by
the Fund exceed losses
o you receive income when the Fund's interest and short-term gains
exceeds its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the Fund or another Fund.
Class A
How your $10,000 has grown in IDS Tax-Exempt Bond Fund
Average annual total return
(as of Nov. 30, 1995)
1 year 5 years 10 years
+15.01% +6.75% 8.09%
(arrow in table pointing to '85) $9,500
(arrow in table pointing to '91) Lehman Muni Index
(arrow in table pointing to '95) $21,770 Tax-Exempt Bond Fund
Assumes:
o Holding period from 11/30/85 to 11/30/95
o Returns to not reflect taxes payable on distributions
o Reinvestment of all income and capital gain distributions for
the Fund, with a value of $11,374. Also see "Performance" in the
Fund's current prospectus.
Lehman Brothers Munincipal Bond Index is made up of a
representative list of general obligation, revenue, insured and
prefunded bonds. The index is frequently used as a general measure
of tax-exempt bond market performance. However, the securities
used to create the index may not be representative of the bonds
held in Tax-Exempt Bond Fund.
The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 20, 1995 to Nov. 30, 1995 were +3.67%,+3.57% and
+9.18%, respectively. March 20, 1995 was the inception date for
Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
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PAGE 12
On the graph above you can see how the Fund's total return compared
to widely cited performance measure, Lehman Brothers Munincipal
Bond Index. In comparing Tax-Exempt Bond Fund to the index, you
should take into account the fact that the Fund's performance
reflects the maximum sales charge of 5%, while such charges are not
reflected in the performance of the index. If you were actually to
buy either individual bonds or bond mutual funds, any sales charges
that you pay would reduce your total return as well.
Your investment and return values may fluctuate so that your
shares, when redeemed, may be worth more or less than the original
cost. This was a period of widely fluctuating security prices.
Past performance is no guarantee of future results.
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PAGE 13
Independent auditors' report
The board of directors and shareholders
IDS Tax-Exempt Bond Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS Tax-Exempt Bond Fund, Inc. as of November 30, 1995, and the
related statement of operations for the year then ended and the
statements of changes in net assets for each of the years in the
two-year period ended November 30, 1995, and the financial
highlights for each of the years in the four-year period ended
November 30, 1995, the eleven months ended November 30, 1991, and
for each of the years in the five-year period ended December 31,
1990. These financial statements and the financial highlights are
the responsibility of fund management. Our responsibility is to
express an opinion on these financial statements and the financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and
sold but not received or delivered, we request confirmations from
brokers, and where replies are not received, we carry out other
appropriate auditing procedures. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
Tax-Exempt Bond Fund, Inc. at November 30, 1995, and the results of
its operations for the year then ended and the changes in its net
assets for each of the years in the two-year period ended November
30, 1995, and the financial highlights for the periods stated in
the first paragraph above, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
January 5, 1996
<PAGE>
PAGE 14
<TABLE>
<CAPTION>
Financial statements
Statement of assets and liabilities
IDS Tax-Exempt Bond Fund, Inc.
Nov. 30, 1995
__________________________________________________________________________________________________________
Assets
__________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $1,060,137,268) $1,175,857,264
Accrued interest receivable 18,022,894
Receivable for investment securities sold 3,886,484
__________________________________________________________________________________________________________
Total assets 1,197,766,642
__________________________________________________________________________________________________________
Liabilities
__________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 498,981
Dividends payable to shareholders 458,844
Payable for investment securities purchased 20,531,612
Accrued investment management services fee 28,522
Accrued distribution fee 553
Accrued service fee 11,180
Accrued transfer agency fee 1,723
Accrued administrative services fee 2,510
Other accrued expenses 128,121
__________________________________________________________________________________________________________
Total liabilities 21,662,046
__________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $1,176,104,596
__________________________________________________________________________________________________________
Represented by
__________________________________________________________________________________________________________
Capital stock -- authorized 10,000,000,000 shares of $.01 par value $ 2,896,040
Additional paid-in capital 1,096,897,935
Undistributed net investment income 96,129
Accumulated net realized loss (Notes 1 and 5) (44,383,629)
Unrealized appreciation (Note 7) 120,598,121
__________________________________________________________________________________________________________
Total -- representing net assets applicable
to outstanding capital stock $1,176,104,596
__________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $1,162,433,870
Class B $ 13,661,486
Class Y $ 9,240
Net asset value per share of outstanding capital stock: Class A shares 286,238,370 $4.06
Class B shares 3,363,339 $4.06
Class Y shares 2,275 $4.06
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 15
<TABLE>
<CAPTION>
Financial statements
Statement of operations
IDS Tax-Exempt Bond Fund, Inc.
Year ended Nov. 30, 1995
__________________________________________________________________________________________________________
Investment income
__________________________________________________________________________________________________________
<S> <C>
Income:
Interest $ 70,030,718
__________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 5,295,694
Distribution fee
Class A 63,515
Class B 37,605
Transfer agency fee 538,738
Incremental transfer agency fee - Class B 297
Service fee
Class A 1,390,309
Class B 8,774
Administrative services fee 315,202
Compensation of directors 22,757
Compensation of officers 7,658
Custodian fees 49,790
Postage 78,658
Registration fees 79,512
Reports to shareholders 79,710
Audit fees 34,000
Administrative 7,196
Other 16,333
__________________________________________________________________________________________________________
Total expenses 8,025,748
Earnings credits on cash balances (Note 2) (21,377)
__________________________________________________________________________________________________________
Total net expenses 8,004,371
__________________________________________________________________________________________________________
Investment income -- net 62,026,347
__________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
__________________________________________________________________________________________________________
Net realized gain on security transactions (Note 3) 14,158,936
Net realized loss on financial futures contracts (19,365,688)
Net realized gain on expired option contracts written (Note 4) 622,500
__________________________________________________________________________________________________________
Net realized loss on investments (4,584,252)
Net change in unrealized appreciation or depreciation 156,869,653
__________________________________________________________________________________________________________
Net gain on investments 152,285,401
__________________________________________________________________________________________________________
Net increase in net assets resulting from operations $214,311,748
__________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 16
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS Tax-Exempt Bond Fund, Inc.
Year ended Nov. 30,
__________________________________________________________________________________________________________
Operations and distributions 1995
1994
__________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 62,026,347 $ 69,996,726
Net realized loss on investments (4,584,252) (29,604,611)
Net change in unrealized appreciation or depreciation 156,869,653 (141,085,176)
__________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations 214,311,748 (100,693,061)
__________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (61,798,018) (69,995,559)
Class B (228,530) --
Class Y (338) --
Net realized gain
Class A -- (28,014,289)
__________________________________________________________________________________________________________
Total distributions (62,026,886) (98,009,848)
__________________________________________________________________________________________________________
Capital share transactions (Note 6)
__________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 218,907,812 128,446,824
Class B shares 13,834,432 --
Class Y shares 8,505 --
Reinvestment of distributions at net asset value
Class A shares 41,880,852 70,563,152
Class B shares 191,220 --
Class Y shares 334 --
Payments for redemptions
Class A shares (304,525,136) (237,258,569)
Class B shares (Note 2) (904,711) --
Class Y shares (20) --
__________________________________________________________________________________________________________
Decrease in net assets from capital share transactions (30,606,712) (38,248,593)
__________________________________________________________________________________________________________
Total increase (decrease) in net assets 121,678,150 (236,951,502)
Net assets at beginning of year 1,054,426,446 1,291,377,948
__________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$96,129 and $0) $1,176,104,596 $1,054,426,446
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 17
Notes to financial statements
IDS Tax-Exempt Bond Fund, Inc.
___________________________________________________________________
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. Class B shares automatically
convert to Class A after eight years. Class Y shares, which the
Fund also began offering on March 20, 1995, have no sales charge
and are offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation
and other rights, and the same terms and conditions, except that
the level of distribution fee, transfer agency fee and service fee
(class specific expenses) differs among classes. Income, expenses
(other than class specific expenses) and realized and unrealized
gains or losses on investments are allocated to each class of
shares based upon its relative net assets.
Significant accounting policies followed by the Fund are summarized
below:
Valuation of securities
All securities are valued at the close of each business day.
Securities 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.
<PAGE>
PAGE 18
Notes to financial statemenets
IDS Tax-Exempt Bond Fund, Inc.
Option transactions
In order to produce incremental earnings, protect gains and
facilitate buying and selling of securities for investment
purposes, the Fund may buy and sell put and call options and write
covered call options on the 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. The Fund may write over-the-counter options where
the completion of the obligation is dependent upon the credit
standing of the other party.
Option contracts are valued daily at the closing prices on their
primary exchanges and unrealized appreciation or depreciation is
recorded. The Fund may realize a gain or loss upon expiration or
closing of the option transaction. When options on debt securities
or futures are exercised, the Fund will realize a gain or loss.
When other options are 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.
<PAGE>
PAGE 19
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.
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.
Securities purchased on a when-issued basis
Delivery and payment for securities that have been purchased by the
Fund on a forward-commitment or when-issued basis can take place
one month or more after the transaction date. During this period,
such securities are subject to market fluctuations, and they may
affect the Fund's net assets the same as owned securities. The
Fund designates cash or liquid high-grade short-term debt
securities at least equal to the amount of its commitment. As of
November 30, 1995, the Fund had entered into outstanding when-
issued or forward commitments of $8,874,852.
<PAGE>
PAGE 20
Notes to financial statements
IDS Tax-Exempt Bond Fund, Inc.
Federal taxes
Since the Fund's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to shareholders, no
provision for income or excise taxes is required.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes primarily because
of the deferral of losses on certain futures contracts, the
recognition of certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes and losses deferred due to "wash
sale" transactions. The character of distributions made during the
year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax
purposes. Also, due to the timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from the
year that the income or realized gains (losses) were recorded by
the Fund.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, undistributed net investment
income has been increased by $96,668, and accumulated net realized
loss has been increased by $96,668.
Dividends to shareholders
Dividends from net investment income, declared daily and payable
monthly, are reinvested in additional shares of the Fund at net
asset value or payable in cash. Capital gains, when available, are
distributed along with the last income dividend of the calendar
year.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Interest income, including level-yield
amortization of premium and discount, is accrued daily.
<PAGE>
PAGE 21
___________________________________________________________________
2. Expenses and sales charges
Under terms of a prior agreement that ended March 19,
1995, the Fund paid AEFC a fee for managing its
investments, recordkeeping and other specified services.
The fee was a percentage of the Fund's average daily net
assets consisting of a group asset charge in reducing
percentages from 0.46% to 0.32% annually on the combined
net assets of all non-money market funds in the IDS
MUTUAL FUND GROUP and an individual annual asset charge
of 0.13% of average daily net assets.
Also under terms of the prior agreement, the Fund paid
AEFC a distribution fee at an annual rate of $6 per
shareholder account and a transfer agency fee at an
annual rate of $15.50 per shareholder account.
<PAGE>
PAGE 22
Notes to financial statements
IDS Tax-Exempt Bond Fund, Inc.
Effective March 20, 1995, when the Fund began offering
multiple classes of shares, the Fund entered into
agreements with AEFC for managing its portfolio,
providing administrative services and serving as
transfer agent as follows: Under its Investment
Management Services Agreement, AEFC determines which
securities will be purchased, held or sold. The
management fee is a percentage of the Fund's average
daily net assets in reducing percentages from 0.45% to
0.35% annually.
Under an Administrative Services Agreement, the Fund
pays AEFC for administration and accounting services at
a percentage of the Fund's average daily net assets in
reducing percentages from 0.04% to 0.02% annually.
Under a separate Transfer Agency Agreement, AEFC
maintains shareholder accounts and records. The Fund
pays AEFC an annual fee per shareholder account for this
service as follows:
o Class A $15.50
o Class B $16.50
o Class Y $15.50
<PAGE>
PAGE 23
Also effective March 20, 1995, the Fund entered into
agreements with American Express Financial Advisors Inc.
for distribution and shareholder servicing-
related services as follows: Under a Plan and Agreement
of Distribution, the Fund pays a distribution fee at an
annual rate of 0.75% of the Fund's average daily net
assets attributable to Class B shares for distribution-
related services.
Under a Shareholder Service Agreement, the Fund pays a
fee for service provided to shareholders by financial
advisors and other servicing agents. The fee is
calculated at a rate of 0.175% of the Fund's average
daily net assets attributable to Class A and Class B
shares.
AEFC will assume and pay any expenses (except taxes and
brokerage commissions) that exceed the most restrictive
applicable state expense limitation.
Sales charges by American Express Financial Advisors
Inc. for distributing Fund shares were $1,572,257 for
Class A and $6,746 for Class B for the twelve months
ended Nov. 30, 1995.
During the year ended Nov. 30, 1995, the Fund's
custodian and transfer agency fees were reduced by
$21,377 as a result of earnings credits from overnight
cash balances.
The Fund has a retirement plan for its independent
directors. Upon retirement, directors receive monthly
payments equal to one-half of the retainer fee for as
many months as they served as directors up to 120
months. There are no death benefits. The plan is not
funded but the Fund recognizes the cost of payments
during the time the directors serve on the board. The
retirement plan expense amounted to $4,646 for the
twelve months ended Nov. 30, 1995.
<PAGE>
PAGE 24
Notes to financial statements
IDS Tax-Exempt Bond Fund, Inc.
3. Securities transactions
Cost of purchases and proceeds from sales of securities
(other than short-term obligations) aggregated
$566,456,582 and $650,128,609, respectively, for the
year ended Nov. 30, 1995. Realized gains and losses are
determined on an identified cost basis.
- --------------------------------------------------------
4. Option contracts written
The number of contracts and premium amounts associated
with option contracts written is as follows:
Year ended Nov. 30, 1995
_______________________________________________
Calls
Contracts Premium
_______________________________________________
Balance Nov. 30, 1994 -- $ --
Opened 500 622,500
Expired (500) (622,500)
_______________________________________________
Balance Nov. 30, 1995 -- $ --
_______________________________________________
________________________________________________________
5. Capital loss carryover
For federal income tax purposes, the Fund has a capital
loss carryover of approximately $20,313,865 at Nov. 30,
1995, that will expire in 2002 if not offset by
subsequent capital gains. It is unlikely the board of
directors will authorize a distribution of any realized
capital gains until the available capital loss carryover
has been offset or expires.
<PAGE>
PAGE 25
6. Capital share transactions
<TABLE>
<CAPTION>
Transactions in shares of capital stock for the years
indicated are as follows:,
______________________________________________________________________________
__________
Year ended Nov. 30, 1995
Year ended
11/30/94
Class A Class B* Class Y* Class A
______________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 57,695,876 3,544,563 2,195 33,342,008
Issued for reinvested 10,859,855 48,794 85 17,804,910
distributions
Redeemed (79,935,787) (230,018) (5) (61,882,421)
______________________________________________________________________________
Net increase (decrease) (11,380,056) 3,363,339 2,275 (10,735,503)
______________________________________________________________________________
*Inception date was March 20, 1995.
______________________________________________________________________________
</TABLE>
7. Interest rate futures contracts
At Nov. 30, 1995, investments in securities included
securities valued at $10,952,860 that were pledged as
collateral to cover initial margin deposits on 800 open
purchase contracts. The market value of the open
contracts at Nov. 30, 1995 was $95,525,000 with a net
unrealized gain of $4,878,125. The Fund designates cash
or liquid, high-grade short-term debt securities at
least equal to the value of these open long futures
contracts.
8. Financial highlights
"Financial highlights" showing per share data and
selected information is presented on pages 6 and 7 of
the prospectus.
<PAGE>
PAGE 26
<TABLE>
<CAPTION>
Investments in securities
IDS Tax-Exempt Bond Fund, Inc. (Percentages represent value of
Nov. 30, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (90.3%)
_____________________________________________________________________________________________________________________________
Name of issuer and title of issue (b)(c) Coupon Maturity Principal Value(a)
rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Alabama (0.3%)
Mobile Industrial Development Board Solid Refunding Revenue Bonds
Mobile Energy Services 6.95 % 2020 $ 3,750,000 $ 3,942,113
_____________________________________________________________________________________________________________________________
Alaska (0.6%)
North Slope Borough General Obligation Bonds Series 1994B Zero Coupon
(CGIC Insured) 7.05 2004 3,000,000 (d) 1,971,720
North Slope Borough General Obligation Bonds Series 1994B Zero Coupon
(CGIC Insured) 7.15 2005 3,000,000 (d) 1,858,410
State Housing Finance Veterans Mortgage Corporation Collateralized Bonds
Series 1990 7.50 2030 3,565,000 3,793,196
______________
Total 7,623,326
_____________________________________________________________________________________________________________________________
Arizona (2.9%)
Phoenix Industrial Development Authority Single Family Mortgage
Revenue Capital Appreciation Bonds Escrowed to Maturity Zero Coupon 6.66 2014 39,000,000 (d) 13,704,600
Phoenix Junior Lien Street & Highway User Refunding Revenue Bonds
Series 1992 6.25 2011 10,350,000 11,072,223
Tucson Street & Highway User Revenue Bonds Series 1991B 6.25 2010 8,250,000 8,761,170
______________
Total 33,537,993
_____________________________________________________________________________________________________________________________
California (11.1%)
Foothill/Eastern Transportation Corridor Agency
Toll Road Revenue Bonds Series 1995A 5.00 2035 17,000,000 14,269,970
Garden Grove Agency Community Development Tax Allocation
Refunding Revenue Bonds 5.875 2023 3,230,000 3,166,821
Los Angeles County Certificate of Participation
Inverse Floater 6.708 2015 3,600,000 (f) 3,485,988
Los Angeles County Metropolitan Transportation Authority
Sales Tax Revenue Bonds Series A (FGIC Insured) 5.00 2021 6,500,000 6,090,045
Los Angeles County Metropolitan Transportation Authority
Sales Tax Revenue Bonds Series B (AMBAC Insured) 5.25 2023 9,000,000 8,731,710
Los Angeles County Public Works Financial Authority
Lease Revenue Bonds (MBIA Insured) 4.75 2013 2,500,000 2,328,000
Oakland Redevelopment Agency Special Tax Assessment Bonds Inverse Floater 7.865 2019 6,000,000 (f) 6,202,500
Orange County Certificate of Participation Civic Center Facility
Capital Appreciation Refunding Bond Zero Coupon (AMBAC Insured) 7.00 2018 13,795,000 (d) 3,600,081
Sacramento Cogeneration Authority Revenue Bonds Proctor & Gamble
Series 1995 6.50 2014 5,000,000 5,206,250
<PAGE>
PAGE 27
San Diego County Certificates of Participation Capital Asset Leasing
Master Refunding Bonds Series 1993 Inverse Floater (AMBAC Insured) 7.07 2012 11,700,000 (f) 12,270,375
San Francisco City & County Redevelopment Financing Authority
Tax Allocation Refunding Bonds Series B 5.25 2021 16,660,000 15,359,520
San Jose Redevelopment Agency Merged Area Tax Allocation Bonds
Series 1993 (MBIA Insured) 4.75 2024 9,000,000 8,090,820
Signal Hills Redevelopment Agency Tax Allocation
Refunding Revenue Bonds (MBIA Insured) 5.25 2023 5,575,000 5,408,029
Southern California Public Power Authority Revenue Bonds
Mead Adelanto Series A (AMBAC Insured) 4.875 2020 6,590,000 6,088,171
State Public Works Board California Community Colleges Lease
Revenue Bonds Series 1994B 7.00 2019 3,900,000 4,308,603
State Public Works Board University of California Lease
Refunding Revenue Bonds Series A (AMBAC Insured) 5.00 2023 6,000,000 5,351,700
State Public Works Board University of California Lease
Refunding Revenue Bonds Series A (AMBAC Insured) 5.50 2014 7,275,000 7,167,112
Statewide Community Development Authority Certificate of Participation
St. Joseph Health System Revenue Bonds (Secondary AMBAC Insured) 5.50 2023 2,500,000 2,440,950
Statewide Community Development Authority Insurance
Certificate of Participation Childrens Hospital of Los Angeles
Revenue Bonds (MBIA Insured) 4.75 2021 5,250,000 4,726,785
Ukiah Unified School District Building Mendocino County Certificate of
Participation Series 1993 6.00 2010 3,790,000 3,815,203
Upland Certificate of Participation San Antonio Community Hospital 5.00 2018 2,245,000 1,962,175
______________
Total 130,070,808
_____________________________________________________________________________________________________________________________
Colorado (0.3%)
Arapahoe County Public Highway Authority Capital Improvement Trust Fund
Highway Revenue Bonds 7.00 2026 2,750,000 2,964,252
_____________________________________________________________________________________________________________________________
Connecticut (0.8%)
State General Obligation Bonds Series 1992A 6.40 2006 8,000,000 8,847,520
_____________________________________________________________________________________________________________________________
Delaware (0.2%)
State University Revenue Bonds Series 1989 6.00 2014 2,000,000 2,042,480
_____________________________________________________________________________________________________________________________
District of Columbia (2.3%)
General Obligation Bonds Series 1994B Zero Coupon (MBIA Insured) 6.64 2013-14 50,360,000 (d) 18,561,582
General Obligation Bonds Series 1994B Zero Coupon (MBIA Insured) 6.68 2012 22,070,000 (d) 8,899,286
______________
Total 27,460,868
_____________________________________________________________________________________________________________________________
Florida (3.0%)
Duvall County Housing Authority Single Family Mortgage
Refunding Revenue Bonds Series 1991 (FGIC Insured) 7.35 2024 3,430,000 3,698,295
Jacksonville Excise Taxes Refunding Revenue Bonds Series 1992
(AMBAC Insured) 6.50 2008 5,000,000 5,612,150
Miami Health Facility Authority Revenue Bonds Inverse Floater
(AMBAC Insured) 6.37 2015 7,000,000 (f) 6,562,500
St. John's River Water Management District Land Acquisition Revenue Bonds
Series 1989 (AMBAC Insured) 6.00 2009 7,000,000 7,299,110
State Board of Education Administration Capital Outlay Public Education
Bonds Series 1991C 6.50 2008-09 11,225,000 12,471,332
______________
Total 35,643,387
<PAGE>
PAGE 28
_____________________________________________________________________________________________________________________________
Georgia (2.3%)
Municipal Electric Authority Refunding Revenue Bonds
Series 1989T 6.50 2025 5,000,000 5,121,350
Municipal Electric Authority Special Obligation Bonds Project #1
4th Crossover Series X (Secondary MBIA) 6.50 2020 19,550,000 22,398,826
______________
Total 27,520,176
_____________________________________________________________________________________________________________________________
Hawaii (1.5%)
City & County of Honolulu General Obligation Bonds Series 1992A 6.30 2006 5,880,000 6,526,212
City & County of Honolulu Refunding & Improvement General Obligation Bonds
Series 1993B Inverse Floater 6.47 2006 5,300,000 (f) 5,677,625
City & County of Honolulu Refunding & Improvement General Obligation Bonds
Series 1993B Inverse Floater 6.77 2008 5,300,000 (f) 5,684,250
______________
Total 17,888,087
_____________________________________________________________________________________________________________________________
Idaho (0.3%)
Health Facilities Authority Revenue Bonds
Bannock Regional Medical Center Series 1995 6.125 2025 2,250,000 (e) 2,197,440
Health Facilities Authority Revenue Bonds
Bannock Regional Medical Center Series 1995 6.375 2017 1,450,000 (e) 1,465,399
______________
Total 3,662,839
_____________________________________________________________________________________________________________________________
Illinois (7.7%)
Cook & Will Counties TWP High School District #206
Capital Appreciation Bonds Series 1994C Zero Coupon (AMBAC Insured) 6.55 2010 2,605,000 (d) 1,157,584
Cook County School District #170 Chicago Heights Capital Appreciation Bonds
Series 1994C Zero Coupon (AMBAC Insured) 6.40 2008 2,155,000 (d) 1,088,534
Cook County School District #170 Chicago Heights Capital Appreciation Bonds
Series 1994C Zero Coupon (AMBAC Insured) 6.50 2009 2,155,000 (d) 1,024,703
Cook County School District #170 Chicago Heights Capital Appreciation Bonds
Series 1994C Zero Coupon (AMBAC Insured) 6.50 2010 2,155,000 (d) 957,617
Cook County Unlimited Tax General Obligation Bonds Series 1989 6.50 2009 5,800,000 6,084,896
Educational Facilities Revenue Bonds
Columbian College 6.125 2018 3,015,000 2,922,892
Educational Facilities Revenue Bonds
Columbian College 6.875 2017 1,110,000 1,163,435
Health Facilities Authority Refunding Revenue Bonds
Edwards Hospital Series 1993A 6.00 2019 3,055,000 3,013,269
Health Facilities Authority Refunding Revenue Bonds Masonic Medical Center
Series 1993 5.50 2019 5,000,000 4,619,300
Health Facilities Authority Refunding Revenue Bonds
University of Chicago Hospital Series 1993 Inverse Floater (MBIA Insured) 7.32 2014 5,000,000 (f) 5,056,250
Metropolitan Pier & Exposition Authority Dedicated State Tax
Capital Appreciation Revenue Bonds McCormick Place Expansion
Series A Zero Coupon (FGIC Insured) 6.55 2021 5,000,000 (d) 1,181,150
Metropolitan Pier & Exposition Authority Dedicated State Tax
Capital Appreciation Revenue Bonds McCormick Place Expansion
Series A Zero Coupon (FGIC Insured) 6.48 2020 12,500,000 (d) 3,124,500
Metropolitan Pier & Exposition Authority McCormick Place Expansion Bonds
Series A Zero Coupon (FGIC Insured) 6.43 2017 8,250,000 (d) 2,468,730
Metropolitan Pier & Exposition Authority McCormick Place Expansion Bonds
Series A Zero Coupon (FGIC Insured) 6.50 2013 6,500,000 (d) 2,486,770
Metropolitan Pier & Exposition Authority McCormick Place Expansion Bonds
Series A Zero Coupon (FGIC Insured) 6.64 2010 11,000,000 (d) 5,011,490
<PAGE>
PAGE 29
Metropolitan Pier & Exposition Authority McCormick Place Expansion Bonds
Series A Zero Coupon (FGIC Insured) 6.72 2016 9,000,000 (d) 2,863,710
Public Building Commission of Chicago Building Revenue Bonds
Board of Education of Chicago Series 1990A Escrowed to Maturity
(MBIA Insured) 6.50 2018 23,500,000 25,378,825
Public Building Commission of Chicago Building Revenue Bonds
State Development Finance Authority Power Refunding Bonds Series 1991A 7.375 2021 10,000,000 11,133,800
State Development Finance Authority Regency Park Retirement Housing
Revenue Bonds Series 1991B Zero Coupon Escrowed to Maturity 6.50 2025 10,000,000 (d) 1,440,700
State Health Facility Authority Revenue Bonds Sisters Hospital Services
Series 1991B Inverse Floater 9.297 2015 5,200,000 (f) 6,045,000
State Health Facility Authority Retirement Housing Revenue Bonds
Zero Coupon 7.75 2020 13,745,000 (d) 2,801,368
______________
Total 91,024,523
_____________________________________________________________________________________________________________________________
Indiana (2.5%)
LaPorte County Hospital Authority
Refunding Revenue Bonds LaPorte Hospital Series 1993 6.25 2012 4,500,000 4,454,235
Municipal Power Agency Power Supply System Refunding Revenue Bonds
Series 1989A (AMBAC Insured) 6.50 2016 8,800,000 9,561,288
Seymour Economic Development Revenue Bonds Union Camp Series 1992 6.25 2012 2,870,000 3,053,651
Transportation Finance Authority Highway Revenue Bonds Series 1990A 7.25 2015 10,000,000 12,086,900
______________
Total 29,156,074
_____________________________________________________________________________________________________________________________
Iowa (0.4%)
State Finance Authority Single Family Mortgage-Backed Securities
Program Bonds Series 1991A 7.25 2016 4,175,000 4,477,270
_____________________________________________________________________________________________________________________________
Kentucky (0.3%)
Owensboro Electric Light & Power Refunding Revenue Bonds Series B
Zero Coupon (AMBAC Insured) 6.65 2015 9,125,000 (d) 3,269,853
_____________________________________________________________________________________________________________________________
Louisiana (2.6%)
Industrial Development Board of Bastrop Percent Pollution Control
Refunding Revenue Bonds International Paper Company Series 1992A 6.90 2007 6,875,000 7,448,994
New Orleans Capital Appreciation Refunding Revenue Bonds
Zero Coupon (AMBAC Insured) 6.35 2014 12,270,000 (d) 4,411,433
New Orleans Capital Appreciation Refunding Revenue Bonds
Zero Coupon (AMBAC Insured) 6.36 2015 16,000,000 (d) 5,412,640
New Orleans Capital Appreciation Refunding Revenue Bonds
Zero Coupon (AMBAC Insured) 6.62 2012 6,250,000 (d) 2,526,625
New Orleans General Obligation Refunding Bonds Series 1991 (AMBAC Insured) 6.00 2004 1,165,000 1,192,855
New Orleans Home Mortgage Authority Special Obligation Refunding Bonds
Series 1992 Escrowed to Maturity 6.25 2011 9,000,000 9,515,250
______________
Total 30,507,797
_____________________________________________________________________________________________________________________________
Maryland (2.3%)
Health & Educational Facility Authority Revenue Bonds
Frederick Memorial Hospital Series 1993 (FGIC Insured) 5.00 2028 10,000,000 9,302,600
State Community Development Administration Department of Housing &
Community Development Single Family Program Bonds Series 1991-1 7.30 2017 10,500,000 11,212,740
State Health & Higher Educational Facility Authority Revenue Bonds
Anne Arndel Medical Center (AMBAC Insured) 5.00 2023 7,000,000 6,571,810
______________
Total 27,087,150
<PAGE>
PAGE 30
_____________________________________________________________________________________________________________________________
Massachusetts (2.0%)
Health & Educational Facilities Authority Revenue Bonds
Valley Regional Health System Series C (Connie Lee Insured) 5.75 2018 3,500,000 3,521,875
Health & Educational Facilities Authority Revenue Bonds
Melrose - Wakefield Hospital Series 1992B 6.375 2016 1,430,000 1,458,757
State Health & Education Authority Beverly Hospital Inverse Floater
(MBIA Insured) 6.72 2020 2,950,000 (f) 2,961,063
State Municipal Wholesale Electric Power Supply System Pre-Refunded
Revenue Bonds Series 1992B 6.75 2017 10,000,000 11,480,700
Water Resources Authority General Revenue Bonds
Series C 4.75 2023 4,000,000 3,537,640
______________
Total 22,960,035
_____________________________________________________________________________________________________________________________
Michigan (1.7%)
Battle Creek Calhoun County Downtown Development Authority Bonds
Series 1994 7.65 2022 3,750,000 4,170,638
Detroit Water Supply System Refunding Revenue Bonds
Series 1992 (FGIC Insured) 6.25 2007 2,000,000 2,172,320
Detroit Sewage Diposal System Refunding Revenue Bonds
Series 1995B (MBIA Insured) 5.25 2021 3,500,000 3,389,750
State Hospital Finance Authority Refunding Revenue Bonds
Presbyterian Villages Obligated Group Series 1995 6.40 2015 1,000,000 980,520
State Hospital Finance Authority Refunding Revenue Bonds
Presbyterian Villages Obligated Group Series 1995 6.50 2025 1,000,000 976,960
State Hospital Finance Authority Refunding Revenue Bonds
Sinai Hospital of Greater Detroit Series 1995 6.625 2016 2,000,000 (e) 1,983,420
State Strategic Fund Percent Limited Obligation Refunding Revenue Bonds
Ford Motor Company Series 1991A 7.10 2006 5,000,000 5,700,050
______________
Total 19,373,658
_____________________________________________________________________________________________________________________________
Minnesota (3.8%)
Cambridge 1st Mortgage Nursing Home Revenue Bonds
Cambridge Nursing Care Center (FHA Insured) 10.15 2013 2,810,000 2,832,115
Minneapolis & St. Paul Housing & Redevelopment Authority
Health Care System Series 1990A 7.40 2005 4,500,000 5,087,880
Rochester Health Care Facility Revenue Bonds Mayo Foundation
Series A 4.951 2019 15,000,000 13,577,850
Southern Minnesota Municipal Power Agency Power Revenue Bonds
Series A (Secondary MBIA Insured) 4.75 2016 12,500,000 11,467,750
State Housing Finance Agency Single Family Mortgage Bonds
Series 1990C (FHA Insured) 7.70 2014 2,370,000 2,538,791
State Housing Finance Agency Single Family Mortgage Revenue Bonds
Series 1988E 7.65 2014 8,400,000 8,945,496
______________
Total 44,449,882
_____________________________________________________________________________________________________________________________
Missouri (0.9%)
Lee's Summit Industrial Development Authority Bonds Pfizer Series 1984 10.50 2009 1,450,000 1,526,734
St. Louis Region Convention & Sports Complex Authority Series 1991C 7.90 2021 8,500,000 9,539,635
______________
Total 11,066,369
_____________________________________________________________________________________________________________________________
New Hampshire (0.4%)
Business Finance Authority Pollution Control & Solid Waste Disposal
Revenue Bonds James River Series 1993 6.625 2022 5,000,000 5,090,400<PAGE>
PAGE 31
_____________________________________________________________________________________________________________________________
New Jersey (1.5%)
Turnpike Authority Revenue Bonds Series 1991C 6.50 2005 16,000,000 17,326,880
_____________________________________________________________________________________________________________________________
New York (12.3%)
Dormitory Authority New York City Court Facility Lease
Revenue Bonds Series 1993A 5.25 2021 20,000,000 18,420,800
Dormitory Authority New York City University System Consolidated
2nd General Revenue Bonds Series A 5.75 2018 5,500,000 5,506,600
Dormitory Authority New York State University Education Facility
Revenue Bonds Series 1994B 5.25 2019 2,500,000 2,355,375
Dormitory Authority New York State Department of Health
Refunding revenue Bonds 5.50 2020 3,060,000 2,898,248
Housing Corporation Refunding Revenue Bonds 5.00 2013 4,000,000 3,683,800
New York City General Obligation Bonds Series B 6.75 2017 11,150,000 11,813,871
New York City General Obligation Bonds
Unlimited Tax Series E 6.50 2006 12,245,000 12,964,761
New York City General Obligation Bonds Series 1995B 7.00 2016 8,850,000 9,658,890
New York City Municipal Water Finance Authority Water & Sewer System
Revenue Bonds Inverse Floater (MBIA Insured) 6.52 2013 5,000,000 (f) 4,850,000
State Medical Care Facility Finance Agency Mental Health Services
Facility Improving Refunding Revenue Bonds Series 1993F 5.375 2014 7,510,000 7,104,911
State Medical Care Facility Finance Agency Hospital & Nursing Home
Revenue Bonds Series D (Secondary MBIA Insured) 5.40 2033 6,675,000 6,537,562
State Mortgage Agency Homeowner Mortgage Revenue Bonds Series TT 7.50 2015 15,945,000 (i) 17,170,692
State Urban Development Correctional Capital Facility
Revenue Bonds Series 4 5.375 2023 17,290,000 16,113,070
State Urban Development Correctional Capital Facility
Refunding Revenue Bonds Series 1993A 5.25 2021 17,050,000 15,690,944
State Urban Development Facilities
Refunding Revenue Bonds Series 1995 5.60 2015 3,000,000 2,968,320
State Thruway Authority Service Contract Revenue Bonds 5.25 2013 4,500,000 4,226,580
State Urban Development Facilities
Refunding Revenue Bonds Series 1995 5.70 2009 2,500,000 2,545,175
______________
Total 144,509,599
_____________________________________________________________________________________________________________________________
North Carolina (3.2%)
Eastern Municipal Power Agency System Refunding Revenue Bonds
Series 1989A 6.50 2024 20,000,000 20,293,400
Eastern Municipal Power Agency System Revenue Bonds Series D 5.60 2016 5,500,000 5,165,545
Eastern Municipal Power Agency System Series G 5.75 2016 12,750,000 12,181,988
______________
Total 37,640,933
_____________________________________________________________________________________________________________________________
Ohio (0.8%)
Columbus Sewerage System Refunding Revenue Bonds Series 1992 6.30 2005 3,500,000 3,837,575
State Air Quality Development Authority Edison Pollution Control
Refunding Revenue Bonds Series A 5.95 2029 5,000,000 4,817,550
Water & Air Quality Development Authority Collateralized Pollution Control
Refunding Revenue Bonds Cleveland Electric Series 1995 7.70 2025 300,000 315,291
______________
Total 8,970,416
_____________________________________________________________________________________________________________________________
Pennsylvania (2.7%)
Delaware County Industrial Development Authority Pollution Control
Refunding Revenue Bonds Philadelphia Electric Company 7.375 2021 23,540,000 25,553,847
<PAGE>
PAGE 32
State Housing Finance Agency Single Family Mortgage Revenue Bonds
Series 1987L 7.125 2014 6,165,000 6,473,558
______________
Total 32,027,405
_____________________________________________________________________________________________________________________________
South Carolina (0.6%)
Horry County Hospital Refunding Revenue Bonds Conway Hospital Series 1992 6.75 2012 4,000,000 4,149,880
Marion County Hospital Revenue Bonds 5.375 2025 3,500,000 (e) 3,281,250
______________
Total 7,431,130
_____________________________________________________________________________________________________________________________
Texas (11.0%)
Austin Utility System Capital Appreciation Refunding Revenue Bonds
Zero Coupon (AMBAC Insured) 6.51 2010 5,055,000 (d) 2,268,178
Austin Utility System Capital Appreciation Refunding Revenue Bonds
Zero Coupon (MBIA Insured) 6.80 2010 16,000,000 (d) 7,179,200
Austin Utility System Combined Utility Refunding Revenue Bonds Series 1992
(AMBAC Insured) 6.25 2006 10,500,000 11,548,845
Coastal Water Authority Water Conveyance System Refunding Revenue Bonds
Series 1991 (AMBAC Insured) 6.25 2017 5,000,000 5,245,800
Cypress-Fairbanks Independent School District Harris County
Unlimited Tax Schoolhouse Bonds Series 1990 (FGIC Insured) 6.50 2008 1,500,000 1,641,465
Harris County Health Facilities Development Hermann Hospital Revenue Bonds
(MBIA Insured) 6.375 2024 8,820,000 9,376,366
Houston Water & Sewer System Junior Lien Refunding Revenue Bonds
Series C Zero Coupon (AMBAC Insured) 6.60 2008 8,000,000 (d) 4,066,640
Municipal Power Agency Bonds (BIG Insured) 6.25 2010 7,000,000 7,406,420
Municipal Power Agency Capital Appreciation Refunding Revenue Bonds
Zero Coupon (AMBAC Insured) 6.90 2009 18,000,000 (d) 8,731,620
San Antonio Electric & Gas Systems Refunding Revenue Bonds Series 1989 6.00 2014 6,000,000 6,113,820
San Antonio Electric & Gas Systems Refunding Revenue Bonds Series 1989 6.50 2012 20,000,000 21,063,800
San Antonio Electric & Gas Systems Refunding Revenue Bonds Series 1989A 6.50 2012 6,250,000 6,586,188
San Antonio Water Refunding Revenue Bonds (FGIC Insured) 6.40 2007 25,000,000 27,332,500
State Turnpike Authority Revenue Bonds 6.00 2020 10,000,000 10,545,100
______________
Total 129,105,942
_____________________________________________________________________________________________________________________________
Virginia (0.7%)
Arlington County Industrial Development Authority Hospital Facility
Refunding Revenue Bonds Arlington Hospital (Secondary MBIA Insured) 5.00 2021 5,500,000 5,130,345
Augusta County Industrial Development Authority Hospital
Refunding Revenue Bonds Augusta Hospital Series 1993 (AMBAC Insured) 5.125 2021 3,600,000 3,419,676
______________
Total 8,550,021
_____________________________________________________________________________________________________________________________
Washington (6.2%)
Auburn School District #408 King County Unlimited Tax
General Obligation Bonds Series 1992A 6.375 2006 8,000,000 8,915,040
Issaquah School District #411 King County Unlimited Tax
General Obligation Refunding Bonds 1992 6.375 2008 16,675,000 18,610,467
King County Housing Authority Pooled Housing Refunding Revenue Bonds
Series 1995A 6.80 2026 2,500,000 2,655,325
Public Power Supply System Nuclear Project #1 Revenue Bonds Series 1989A 6.00 2017 12,130,000 12,156,322
Public Power Supply System Nuclear Project #3 Capital Appreciation
Refunding Revenue Bonds Series B Zero Coupon (MBIA Insured) 6.61 2013 10,360,000 (d) 3,918,877
<PAGE>
PAGE 33
State Public Power Supply System Nuclear Project #1 Revenue Refunding Bonds
Bonneville Power Administration Series 1993A Inverse Floater
(FSA Insured) 7.17 2011 15,000,000 (f) 15,918,750
State Public Power Supply System Nuclear Project #2 Revenue Bonds
Inverse Floater 5.40 2012 10,950,000 (f) 10,464,696
______________
Total 72,639,477
_____________________________________________________________________________________________________________________________
West Virginia (0.8%)
School Building Authority Capital Improvement Revenue Bonds Series 1990B
(MBIA Insured) 6.00 2020 9,730,000 9,912,438
_____________________________________________________________________________________________________________________________
Wyoming (0.3%)
Community Development Authority Single Family Mortgage Bonds
Federally Insured or Guaranteed Mortgage Loan 7.40 2031 3,510,000 3,776,163
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $945,837,268) $1,061,557,264
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (9.7%)
_____________________________________________________________________________________________________________________________
Issuer (c,h) Annualized Amount Value (a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Municipal notes
Berkeley County South Carolina Pollution Control Refunding Revenue Bonds
Amoco Series 1994
07-01-12 3.70% $ 2,500,000 (g) $ 2,500,000
Burke County Georgia Pollution Control Revenue Bonds
Georgia Power & Light V.R.D.B.
07-01-24 4.00 5,400,000 (g) 5,400,000
Gulf Coast Amoco
10-12-17 3.75 5,700,000 (g) 5,700,000
Honolulu Hawaii City & County General Obligation Bonds
12-14-95 3.850 5,000,000 5,000,000
Illinois Health Facilities Authority Revenue Bonds
Methodist Health Project
12-28-95 4.00 5,000,000 5,000,000
Illinois Health Facilities Authority Revenue Bonds
Rush Presbyterian (MBIA Insured)
12-28-95 3.95 4,300,000 4,300,000
Jackson County Mississippi Port Facility Refunding Bonds
06-01-23
Chevron Series 1993 3.70 2,400,000 (g) 2,400,000
Lincoln County Wyoming Pollution Control Revenue Bonds Exxon Series 1985
08-01-15 3.70 2,700,000 (g) 2,700,000
Michigan State Hospital Finance Authority Revenue Bonds (FSA Insured)
12-15-95 4.03 6,000,000 6,000,000
<PAGE>
PAGE 34
Missouri Health & Educational Facilities Authority Revenue Bonds
Health Midwest Series C (MBIA Insured)
12-11-95 3.88 1,000,000 1,000,000
Moffat County Colorado Refunding Bonds Pacificorp Series 1994
05-01-13 3.80 12,600,000 (g) 12,600,000
Monroe County Georgia Development Authority Gulf Power
Pollution Control Revenue Bonds 1995
09-01-24 4.00 1,000,000 (g) 1,000,000
Municipal Electric Authority of Georgia Bonds Series A
12-04-95 3.95 4,000,000 4,000,000
New York City General Obligation Bonds 3.90 5,000,000 5,000,000
12-14-95
New York City Municipal Water Finance Authority Water & Sewer System
Revenue Bonds Series A
06-15-25 4.00 8,900,000 (g) 8,900,000
Ohio State Air Quality Development Authority Revenue Bonds
Cincinnati G & E Series B
09-01-30 3.70 9,400,000 (g) 9,400,000
Palm Desert California Finance Authority Tax Revenue Bonds (MBIA Insured)
12-21-95 3.989 5,600,000 5,600,000
Port Authority Regional District of Joliet Illinois Exxon
10-01-24 3.75 9,400,000 (g) 9,400,000
Richland County South Carolina Hospital Facilities Revenue Bonds
Richland Memorial Hospital Series C (MBIA Insured)
12-20-95 3.899 5,000,000 5,000,000
Salt Lake City Utah Hospital Revenue Bonds IHC Hospital
12-14-95 3.85 5,500,000 5,500,000
San Diego California Water Revenue Bonds (MBIA Insured)
12-21-95 3.90 5,000,000 5,000,000
West Feliciana Parish Louisiana Pollution Control Revenue Bonds
Gulf States Utilities V.R.D.B. Series D
12-01-15 3.80 2,900,000 (g) 2,900,000
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $114,300,000) $ 114,300,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $1,060,137,268)(j) $1,175,857,264
/TABLE
<PAGE>
PAGE 35
Investments in securities
IDS Tax-Exempt Bond Fund, Inc.
Nov. 30, 1995
___________________________________________________________________
Notes to investments in securities
___________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the
financial statements.
(b) Investments in bonds, by rating category as a percentage of
total bonds, are as follows:
(Unaudited)
_________________________________________
Rating 11-30-95 11-30-94
_________________________________________
AAA 44% 46%
AA 18 29
A 17 17
BBB 21 8
Non-rated - -
___________________________________________________________________
Total 100% 100%
___________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions
to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
CGIC -- Capital Guaranty Insurance Company
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
(d) For zero coupon bonds, the interest rate disclosed represents
the annualized effective yield on the date of acquisition.
(e) At Nov. 30, 1995 the cost of securities purchased on a when-
issued basis was $8,874,852.
(f) Inverse floaters represent securities that pay interest at a
rate that increases (decreases) in the same magnitude as,
or in a multiple of, a decline (increase) in market short-term
rates. Interest rate disclosed is the rate in effect on
Nov. 30, 1995. Inverse floaters in the aggregate represent 7.2%
of the fund's net assets as of Nov. 30, 1995.
(g) Interest rate varies to reflect current market conditions;
rates shown are the effective rates on Nov. 30, 1995.
(h) The following abbreviations are used in portfolio descriptions:
V.R.D.B. -- Variable Rate Demand Bond
<PAGE>
PAGE 36
(i) Partially pledged as initial deposit on the following open
interest rate futures contracts (see Note 7 to the financial
statements):
Type of Security Notional Amount
Purchase Contracts
___________________________________________________________________
U.S. Treasury Bonds Dec. 1995 $80,000,000
(j) At Nov. 30, 1995, the cost of securities for federal income tax
purposes was $1,059,826,909 and the aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $116,054,511
Unrealized depreciation (24,156)
___________________________________________________________________
Net unrealized appreciation $116,030,355
<PAGE>
PAGE 37
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
seek high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to seek
high current income. Secondary objective is capital growth.
(icon of) cornucopia
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories, or the equivalent, and in
government bonds.
(icon of) greek column
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt<PAGE>
PAGE 38
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
<PAGE>
PAGE 39
IDS mutual funds
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
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<PAGE>
PAGE 40
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common stock of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
<PAGE>
PAGE 41
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
high current income and growth of income and capital with reduced
volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to seek high
current income and, secondarily, to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
<PAGE>
PAGE 42
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in companies with significant growth potential
due to superiority in technology, marketing or management. The
fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial advisor or writing to American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.
<PAGE>
PAGE 43
Federal income tax information
IDS Tax-Exempt Bond Fund, Inc.
The Fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. The dividends listed below were reported
to you on your year-end statement, in January.
IDS Tax-Exempt Bond Fund, Inc.
Fiscal year ended Nov. 30, 1995
Class A
Exempt-interest dividends -- taxable status explained below.
Payable date Per share
Dec. 28, 1994 $0.01793
Jan. 25, 1995 0.01648
Feb. 23, 1995 0.01848
march 27, 1995 0.01905
April 26, 1995 0.01791
May 25, 1995 0.01629
June 26, 1995 0.01849
July 26, 1995 0.01687
Aug. 25, 1995 0.01691
Sept. 25, 1995 0.01779
Oct. 26, 1995 0.01713
Nov. 27, 1995 0.01794
Total distributions $0.21127
<PAGE>
PAGE 44
Class B
Exempt-interest dividends -- taxable status explained below.
Payable date Per share
March 27, 1995 $0.01874
April 26, 1995 0.01568
May 25, 1995 0.01405
June 26, 1995 0.01595
July 26, 1995 0.01449
Aug. 25, 1995 0.01456
Sept. 25, 1995 0.01531
Oct. 26, 1995 0.01463
Nov. 27, 1995 0.01530
Total distributions $0.13871
Class Y
Exempt-interest dividends -- taxable status explained below.
Payable date Per share
March 27, 1995 $0.01920
April 26, 1995 0.01846
May 25, 1995 0.01683
June 26, 1995 0.01910
July 26, 1995 0.01742
Aug. 25, 1995 0.01746
Sept. 25, 1995 0.01838
Oct. 26, 1995 0.01772
Nov. 27, 1995 0.01854
Total Distributions $0.16311
<PAGE>
PAGE 45
Federal income tax information
Source of distributions
Distributions during the fiscal year ended Nov. 30, 1995, were
derived exclusively from interest on tax-exempt securities.
Federal taxation
Exempt-interest dividends are exempt from federal income taxes and
should not be included in shareholders' gross income.
Other taxation
Exempt-interest dividends may be subject to state and local taxes.
Each shareholder should consult a tax advisor about reporting this
income for state and local tax purposes.
Source of income by state
Percentages of income from munincipal securities earned by the Fund
from various states during the year ended Nov. 30, 1995 are listed
below.
Alaska 1.118%
Alabama 0.100
Arizona 2.398
California 12.339
Colorado 0.580
Conneticut 1.460
Delaware 0.179
Florida 4.542
Georgia 2.782
Hawaii 1.509
Illinois 8.138
Indiana 2.313
Iowa 0.433
Kansas 0.154
Kentucky 0.403
Louisiana 2.811
Maryland 2.407
Massachusetts 1.625
Michigan 1.470
Minnesota 3.731
Mississippi 0.012
Missouri 1.184
Nebraska 0.068
New Hampshire 0.474
New Jersey 1.485<PAGE>
PAGE 46
New Mexico 0.210
New York 9.895
North Carolina 3.806
Ohio 1.056
Oregon 0.382
Pennsylvania 4.080
Puerto Rico 0.166
South Carolina 1.323
Tennessee 0.325
Texas 13.307
Utah 0.880
Virginia 1.423
Washington 5.209
Washington, DC 2.091
West Virginia 0.879
Wyoming 1.253
<PAGE>
PAGE 47
Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
AMERICAN
EXPRESS
FINANCIAL
ADVISORS
IDS Tax-Exempt Bond Fund
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 48
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in a blue strip at the
top of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
