PAGE
IDS SPECIAL TAX-EXEMPT SERIES TRUST
1993 SEMIANNUAL REPPORT
IDS Insured Tax-Exempt Fund
Picture of: A facility being build by several construction workers.
Invests in tax-exempt bonds insured against the effects of default
IDS
An American Express company
AMERICAN
EXPRESS
Distributed by IDS Financial Services Inc.<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
Message from the President
- --------------------------------------------------------------------------
(Photo of) William R. Pearce
Dear Shareholder,
IDS Insured Tax-Exempt Fund enjoyed a positive six months as municipal
bonds continued to perform well. Portfolio manager Paul Hylle provides a
review of the past period on the following page.
IDS Insured Tax-Exempt Fund is most appropriate for long-term investors
who, in the face of economic uncertainty, are looking for extra protection
in addition to income that is generally exempt from federal tax.
Investors should know that some investments the Fund makes are subject to
the alternative minimum tax. This insurance does not guarantee a
shareholder's full investment -- only prompt payment of expected interest
from the Fund's insured investment. Virtually all of the Fund's
investments have the interest and principal payments guaranteed by a
private insurer or a government agency. Should there be a default, this
means that payments to the Fund will continue to be made when they are
due, as opposed to immediately upon default. While it reduces the
interest income slightly, the insurance does mean that the changes in
net asset value result only from changes in interest rates on municipal
bonds and not from credit deterioration or defaults on the underlying
securities.
For your convenience, IDS provides several alternatives for your dividend
distributions. Most shareholders reinvest their dividends in additional
shares of the Fund. But you also may direct them to any other publicly
offered IDS fund available in your state in which you have an investment,
except IDS Planned Investment Account. If you need to receive cash
dividends, consider having them sent directly to your bank. It keeps the
check from being delayed or lost and it gets to the bank quicker. Your
IDS personal financial planner can tell you more about these dividend
services.
Your IDS financial planner also can help you make sure your investment
and protection strategies continue to meet the objectives in your
financial plan. As your objectives and time horizons change, talk to
your planner about the broad range of IDS products and services designed
to help you meet a variety of investment and protection needs.
Sincerely,
William R. Pearce
President
IDS Insured Tax-Exempt Fund
Feb. 7, 1994
On the cover: Municipal bonds often are issued by communities to fund
such important projects as construction of hospital or schools. IDS
Insured Tax-Exempt Fund invests in a broad range of such bonds.<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
From Your Portfolio Manager: A Perspective
- --------------------------------------------------------------------------
(Photo of Paul Hylle)
Portfolio manager Paul Hylle also manages IDS state tax-exempt funds.
Prior to joining IDS in June 1993, he spent seven years as portfolio
manager of a tax-exempt mutual fund and a money market fund.
During the past six months, IDS Insured Tax-Exempt Fund shareholders
reaped the benefits of falling interest rates and a portfolio structured
to take advantage of that favorable rate trend.
The Fund's annualized standard yield for the 30-day period ended
Dec. 31, 1993, was 4.08 pecent based on the maximum public offering price
on that day. This is equal to a 5.67-percent taxable yield for an
individual in the 28-percent federal tax bracket. At net asset value,
the yield was 4.30 percent, compared with a taxable equivalent yield of
5.97 percent in the same tax bracket. Dividends for the six months
totaled 15 cents per share. The Fund's net asset value per share on
Dec. 31, 1993, was $5.81, compared with $5.63 at the beginning of the
Fund's fiscal year. (If you purchased shares during this period, your
return also would have been affected by the sales charge, as described
in the prospectus.)
As we expected, interest rates continued to ease downward during the
first three months of the period, adding further fuel to the bond market
rally. (Falling rates generally improve bonds' market values, while
rising rates have the opposite effect.) Although rates rose slightly in
October due to a stronger economy and accompanying fears of higher
inflation, the effect on the market was minor.
In order to take advantage of market opportunities, we maintained a
longer-than-average portfolio maturity, a position that benefits from a
declining interest-rate environment. We also stayed virtually fully
invested (keeping nearly all the assets in bonds and holding only a small
amount of cash reserves) throughout the six months.
Early in the period, as interest rates were making new lows, we
emphasized bonds with 15- and 20-year maturities rather than the more
interest-rate sensitive 30-year bonds. That strategy worked well. Later
in the period, as interest rates began creeping up and bond prices eased,
we began searching out discount (bonds selling below their par value)
and 30-year bonds because we felt they represented better values.
Demand for municipal bonds in general was strong throughout the period, a
reflection of the higher personal income tax rates created by the passage
of the budget bill last summer. But supply also was very healthy, in
large part because bond issuers were rapidly replacing old bonds with new
ones that carried lower interest rates.
Looking at the second half of the fiscal year, we think that the stage is
set for an ongoing positive environment for municipal bonds. First, the
demand for these securities is likely to increase, again because of
higher tax rates. Second, supply is likely to tighten during the
upcoming months. Those factors should work in the market's favor.
Ultimately, we expect the Fund to continue to generate a return
comfortably ahead of inflation and largely free from federal taxes,
while protecting investors' principal from the effect of possible bond
defaults.
<PAGE>
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IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
Ten Largest Holdings Dec. 31, 1993
______________________________________________________________________________________________________________
Percent of
Fund's
Value Net Assets
_____________________________________________________________________________________
<S> <C> <C>
Brazos River Texas Authority Collateralized Pollution
Control Refunding Revenue Bonds Texas Utility Electric
Series 1992C
6.70% 2022 $ 16,481,967 2.98%
Snohomish County Washington Public Utility District #1
General System Revenue Bonds Series 1993
6.00% 2013 13,655,406 2.47
Pittsburg Pennsylvania Water & Sewer Authority
Water & Sewer System Refunding Revenue Bonds
Series 1991A
6.50% 2014 11,553,200 2.09
Burlington Kansas Pollution Control Refunding Revenue
Bonds Kansas Gas & Electric Series 1991
7.00% 2031 11,450,100 2.07
Washington Public Power Supply System Nuclear
Project #1 Refunding Revenue Bonds Series 1992A
6.25% 2017 11,277,840 2.04
Economic Development Pollution Control
Refunding Revenue Bonds Delaware Power & Light
Series 1992B
6.75% 2019 11,238,600 2.03
Montgomery County Pennsylvania Industrial Development
Authority Pollution Control Refunding Revenue Bonds
Philadelphia Electric Series 1991B
6.70% 2021 11,185,400 2.02
Illinois Regional Transportation Authority
General Obligation Bonds Series 1992A
6.50% 2015 10,880,500 1.96
Brazos River Texas Authority Collateralized Pollution
Control Refunding Revenue Bonds Texas Utility Electric
Series 1992
6.75% 2022 10,758,247 1.94
Harris County Texas Toll Road Senior Lien
Refunding Revenue Bonds Series A
6.50% 2017 10,719,179 1.93
_____________________________________________________________________________________
Total $119,200,439 21.53%
_____________________________________________________________________________________
</TABLE>
<PAGE>
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IDS Insured Tax-Exempt Fund
<TABLE>
_____________________________________________________________________________________________________________
<CAPTION>
Statement of Assets and Liabilities Dec. 31, 1993
Assets
_____________________________________________________________________________________________________________
<S> <C>
(Unaudited)
Investments in securities, at value (Note 1)
(identified cost $499,867,794) $554,090,428
Cash in bank on demand deposit 826,367
Accrued interest receivable 9,816,022
_____________________________________________________________________________________________________________
Total assets 564,732,817
_____________________________________________________________________________________________________________
Liabilities
___________________________________________________________________________________________________________
Dividends payable to shareholders 226,989
Payable for investment securities purchased 10,574,188
Accrued investment management and services fee 242,941
Accrued distribution fee 8,846
Accrued transfer agency fee 21,373
Other accrued expenses 18,517
_____________________________________________________________________________________________________________
Total liabilities 11,092,854
_____________________________________________________________________________________________________________
Net assets applicable to outstanding capital stock $553,639,963
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Shares of beneficial interest - $.01 par value, unlimited number of shares authorized;
outstanding 95,220,814 shares $ 952,208
Additional paid-in capital 497,647,685
Accumulated net realized gain on investments (Note 1) 817,436
Unrealized appreciation of investments 54,222,634
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding shares $553,639,963
_____________________________________________________________________________________________________________
Net asset value per share $ 5.81
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
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IDS Insured Tax-Exempt Fund
<TABLE>
_____________________________________________________________________________________________________________
<CAPTION>
Statement of Operations Six months ended Dec. 31, 1993
Investment income
_____________________________________________________________________________________________________________
<S> <C>
(Unaudited)
Income:
Interest $14,893,539
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 1,356,168
Distribution fee 49,241
Transfer agency fee 124,099
Compensation of trustees 4,388
Compensation of officers 2,567
Custodian fees 1,829
Postage 16,534
Registration fees 60,096
Reports to shareholders 5,993
Audit fees 7,500
Administrative 2,273
Portfolio insurance 533
Other 1,656
_____________________________________________________________________________________________________________
Total expenses 1,632,877
_____________________________________________________________________________________________________________
Investment income -- net 13,260,662
_____________________________________________________________________________________________________________
Realized and unrealized gain on investments -- net
_____________________________________________________________________________________________________________
Net realized gain on security transactions (Note 3) 1,483,526
Net realized gain on closed interest rate futures contracts 1,468,000
_____________________________________________________________________________________________________________
Net realized gain on investments 2,951,526
Net change in unrealized appreciation or depreciation of investments 13,259,087
_____________________________________________________________________________________________________________
Net gain on investments 16,210,613
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $29,471,275
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
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IDS Insured Tax-Exempt Fund
<TABLE>
_____________________________________________________________________________________________________________
<CAPTION>
Statements of Changes in Net Assets Six months ended Year ended
Dec. 31, 1993 June 30, 1993
Operations and distributions
_____________________________________________________________________________________________________________
<S> <C> <C>
(Unaudited)
Investment income -- net $ 13,260,662 $ 21,102,522
Net realized gain (loss) on investments 2,951,526 (894,550)
Net change in unrealized appreciation or depreciation of investments 13,259,087 22,786,464
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations 29,471,275 42,994,436
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (13,260,662) (21,103,569)
Net realized gain on investments (129,492) --
_____________________________________________________________________________________________________________
Total distributions (13,390,154) (21,103,569)
_____________________________________________________________________________________________________________
Share transactions
_____________________________________________________________________________________________________________
Proceeds from sales of 16,330,508 and 30,509,841 shares (Note 2) 93,635,690 166,631,848
Net asset value of 1,692,185 and 2,691,805 shares issued in
reinvestment of distributions 9,715,180 14,717,222
Payments for redemptions of 5,164,563 and 8,624,410 shares (29,638,121) (47,103,860)
_____________________________________________________________________________________________________________
Increase in net assets from share transactions
representing net addition of 12,858,130 and 24,577,236 shares 73,712,749 134,245,210
_____________________________________________________________________________________________________________
Total increase in net assets 89,793,870 156,136,077
_____________________________________________________________________________________________________________
Net assets at beginning of period 463,846,093 307,710,016
_____________________________________________________________________________________________________________
Net assets at end of period $553,639,963 $463,846,093
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
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IDS Insured Tax-Exempt Fund
Notes to Financial Statements (Unaudited as to Dec. 31, 1993)
____________________________________________________________________________
1. Summary of Significant Accounting Policies
IDS Special Tax-Exempt Series Trust was organized as
a Massachusetts business trust April 7, 1986. IDS
Special Tax-Exempt Series Trust is a "series fund"
that is presently comprised of six individual funds,
including IDS Insured Tax-Exempt Fund. The Fund is
registered under the Investment Company Act of 1940
(as amended) as a diversified, open-end management
investment company.
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 Trustees. 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.
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 include the possibility that
there may be an illiquid market and that a change in
the value of the contract may not correlate with
changes in the value of the underlying securities.
Upon entering into a futures contract, the Fund is
required to deposit either cash or securities in an
amount (initial margin) equal to a certain
percentage of the contract value. Subsequent
payments (variation margin) are made or received by
the Fund each day. The variation margin payments
are equal to the daily changes in the contract
value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or
loss when the contract is closed or expires.
<PAGE>
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IDS Insured Tax-Exempt Fund
Notes to Financial Statements (continued)
____________________________________________________________________________
1. Summary of Significant Accounting Policies (continued)
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 share-holders, no provision
for income or excise taxes is required.
Net investment income (loss) and net realized gains
(losses) may differ for financial statement and tax
purposes primarily because of the deferral of losses
on certain futures contracts, the recognition of
certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred
due to "wash sale" transactions. The character of
distributions made during the year from net
investment income or net realized gains may differ
from their ultimate characterization for federal
income tax purposes. Also, due to the timing of
dividend distributions, the fiscal year in which
amounts are distributed may differ from the year
that the income or realized gains (losses) were
recorded by the Fund.
Dividends to Shareholders
Dividends 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. Portfolio insurance
expense is recognized over the premium period.
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
Notes to Financial Statements (continued)
____________________________________________________________________________
2. Expenses and Sales Charges
Under the terms of an agreement dated Nov. 14, 1991,
the Fund pays IDS Financial Corporation (IDS) a fee
for managing its investments, record-keeping and
other specified services. The fee is a percentage
of the Fund's average daily net assets consisting
of a group asset charge in reducing percentages
from 0.46 percent to 0.32 percent 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 percent of average
daily net assets.
The Fund also pays IDS 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. The transfer agency fee is
reduced by earnings on monies pending shareholder
redemptions.
IDS will assume and pay any expenses (except taxes
and brokerage commissions) that exceed the most
restrictive applicable state expense limitation.
Sales charges by IDS Financial Services, Inc. for
distributing Fund shares were $3,585,254 for the six
months ended Dec. 31, 1993.
The Fund has a retirement plan for its independent
trustees. Upon retirement trustees receive monthly
payments equal to one-half of the retainer fee for
as many months as they served as trustees 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 trustees serve on the
Board. The retirement plan expense amounted to
$3,023 for the six months ended Dec. 31, 1993.
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
Notes to Financial Statements (continued)
____________________________________________________________________________
3. Securities Transactions
Cost of purchases and proceeds from sales of
securities (other than short-term obligations)
aggregated $158,236,631 and $75,828,459,
respectively, for the six months ended Dec. 31,
1993. Realized gains and losses are determined on
an identified cost basis.
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
Notes to Financial Statements (continued)
____________________________________________________________________________
4. Financial Highlights
The table below shows certain important financial
information for evaluating the Fund's results.
<TABLE>
<CAPTION>
Six months Fiscal year ended June 30, Six months
ended ________________________________________ ended
Dec. 31, 1993 1993 1992 1991 1990 June 30, 1989*
____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Per Share Income and Capital Changes** (Unaudited)
(for a share outstanding throughout the period)
Net asset value, beginning of period $5.63 $5.33 $5.04 $4.96 $5.00 $4.86
____________________________________________________________________________________________________________________________
Income from investment operations:
Net investment income .15 .30 .31 .32 .31 .16
Net gains (losses) on securities
(both realized and unrealized) .18 .30 .29 .08 (.04) .14
____________________________________________________________________________________________________________________________
Total from investment operations .33 .60 .60 .40 .27 .30
____________________________________________________________________________________________________________________________
Less distributions:
Dividends from net investment income (.15) (.30) (.31) (.32) (.31) (.16)
____________________________________________________________________________________________________________________________
Net asset value, end of period $5.81 $5.63 $5.33 $5.04 $4.96 $5.00
____________________________________________________________________________________________________________________________
Ratios/Supplemental Data
Net assets, end of period
(in millions) $554 $464 $308 $195 $133 $79
Ratio of expenses to average
daily net assets .64% .65% .67% .67% .69% .72%***
Ratio of net income to average
daily net assets 5.18% 5.53% 6.06% 6.36% 6.44% 6.60%***
Portfolio turnover rate (excluding
short-term securities) 15% 5% 11% 8% 24% 19%
____________________________________________________________________________________________________________________________
Total Return+ 6.0%++ 11.7% 12.3% 8.1% 5.6% 6.4%++
____________________________________________________________________________________________________________________________
*The Fund's fiscal year-end was changed from Dec. 31 to June 30, effective 1989.
**Rounded to the nearest cent.
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal periods ended June 30, 1989, and Dec. 31, 1993, the annualized total return is 13.3 percent
and 12.3 percent, respectively.
</TABLE>
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities, Dec. 31, 1993 (Unaudited)
_____________________________________________________________________________________________________________________________
Municipal Bonds (97.7%)
(Percentages represent value of investments compared to net assets)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Alabama (0.6%)
Mobile General Obligation Capital Improvement Warrants Convention Center
Series 1990 (AMBAC Insured) 7.125% 2020 $ 3,000,000 $ 3,551,910
_____________________________________________________________________________________________________________________________
Arizona (0.7%)
Chandler Water & Sewer Refunding Revenue Bonds
Series 1991 (FGIC Insured) 7.00 2012 1,250,000 1,440,362
Health Facilities Authority Hospital System Refunding Revenue Bonds
Phoenix Baptist Hospital Series 1992 (MBIA Insured) 6.25 2011 2,150,000 2,353,842
____________
3,794,204
_____________________________________________________________________________________________________________________________
California (4.6%)
Alameda County Certificate of Participation Refunding Bonds
Santa Rita Jail (MBIA Insured) 5.00 2015 3,250,000 3,120,228
Brea Redevelopment Agency Tax Allocation Bonds Redevelopment Project AB
(MBIA Insured) 5.75 2023 5,000,000 5,153,250
Concord Redevelopment Agency Tax Allocation Bonds
Central Concord Redevelopment (AMBAC Insured) 5.25 2019 5,000,000 4,896,800
Eastern Municipal Water District Riverside County Water & Sewer
Revenue Certificates of Participation Series 1991 (FGIC Insured) 6.50 2020 5,460,000 6,313,944
San Jose Redevelopment Agency Merged Area Redevelopment
Tax Allocation Bonds Series 1993 (MBIA Insured) 5.00 2020 2,750,000 2,614,122
San Jose Redevelopment Agency Merged Area Redevelopment
Tax Allocation Bonds Series 1993 (MBIA Insured) 5.25 2016 1,250,000 1,233,650
San Pablo Redevelopment Agency Merged Area Tax Allocation Bonds
Series 1993 (FGIC Insured) 5.25 2023 2,000,000 (d) 1,955,620
____________
25,287,614
_____________________________________________________________________________________________________________________________
Colorado (0.5%)
Metro Wastewater Reclamation District Sewer Refunding Bonds
Series 1993B (AMBAC Insured) 4.75 2012 3,000,000 (d) 2,876,010
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
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IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Delaware (2.2%)
Economic Development Pollution Control Refunding Revenue Bonds
Delaware Power & Light Series 1992B (AMBAC Insured) 6.75 % 2019 $10,000,000 $ 11,238,600
Health Facilities Authority Refunding Revenue Bonds
Medical Center of Delaware Series 1989 (MBIA Insured) 7.00 2015 1,000,000 1,139,600
____________
12,378,200
_____________________________________________________________________________________________________________________________
District of Columbia (2.8%)
General Obligation Bonds Series 1992B (MBIA Insured) 6.30 2010 3,840,000 4,188,365
Howard University Revenue Bonds Series A (MBIA Insured) 8.00 2017 1,500,000 1,718,865
Metropolitan Washington Airports Authority Airport System Revenue Bonds
Series 1992A (MBIA Insured) 6.625 2019 8,670,000 9,639,046
____________
15,546,276
_____________________________________________________________________________________________________________________________
Florida (4.1%)
Alachua County Health Facilities Authority Revenue Bonds Shands Hospital
Series 1985A (MBIA Insured) 8.00 2015 500,000 535,120
Dade County Seaport Authority Revenue Bonds (MBIA Insured) 6.75 2015 5,000,000 5,545,600
Department of Transportation Turnpike Revenue Bonds Series 1991A
(AMBAC Insured) 6.25 2020-21 4,000,000 4,260,640
Fort Myers Utility System Refunding Revenue Bonds Series 1989A
(BIG Insured) 6.00 2019 2,000,000 2,077,420
Gulf Breeze Local Government Loan Program Boca Raton Series 1985E
(FGIC Insured) 7.75 2015 2,000,000 2,380,820
Lee County Transportation Facilities Revenue Bonds Series 1987
(AMBAC Insured) 8.25 2017 1,500,000 1,665,465
Orange County Tourist Development Tax Revenue Bonds (AMBAC Insured) 7.75 1996 750,000 847,088
Orlando-Orange County Expressway Authority Junior Lien Refunding Revenue
Bonds Series 1993A (FGIC Insured) 5.125 2020 3,470,000 3,348,134
Osceola County Transportation Revenue Bonds Series 1988A (FGIC Insured) 7.70 2013 1,215,000 1,410,566
Palm Beach County Solid Waste Authority Revenue Bonds Series 1984
(BIG Insured) 8.375 2010 500,000 583,740
____________
22,654,593
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Georgia (1.9%)
Atlanta Metropolitan Rapid Transit Authority Sales Tax Revenue Bonds
Series L (AMBAC Insured) 7.20 % 2020 $ 3,000,000 $ 3,503,400
Chatham County Hospital Authority Revenue Bonds Memorial Medical Center
Series 1990A (MBIA Insured) 7.00 2021 4,500,000 5,167,170
Municipal Electrical Authority Power Revenue Bonds Series M (BIG Insured) 8.10 2012 1,080,000 1,222,452
Municipal Electrical Authority Special Obligation Refunding Bonds
2nd Crossover Series (AMBAC Insured) 7.80 2020 500,000 571,240
____________
10,464,262
_____________________________________________________________________________________________________________________________
Illinois (4.6%)
Chicago O'Hare International Airport General Revenue Bonds Series 1990A
(AMBAC Insured) 7.50 2016 2,000,000 2,292,680
Chicago O'Hare International Airport Terminal Revenue Bonds (MBIA Insured) 7.625 2010 3,000,000 3,461,670
Chicago Public Building Commission Revenue Bonds (MBIA Insured) 7.70 2008 1,000,000 1,158,600
Chicago Public Building Commission Revenue Bonds Series 1989A (FGIC Insured) 7.75 2006 1,000,000 1,180,320
Chicago Public Building Commission Revenue Bonds Series 1990A (MBIA Insured) 7.125 2015 5,000,000 5,969,950
Chicago Wastewater Transmission Refunding & Improvement Bonds Series 1986
(FGIC Insured) 7.375 2012 675,000 739,625
Regional Transportation Authority General Obligation Bonds Series 1992A
(AMBAC Insured) 6.50 2015 10,000,000 10,880,500
____________
25,683,345
_____________________________________________________________________________________________________________________________
Indiana (4.7%)
Educational Facilities Authority Bonds Valpraiso University
(BIG Insured) 7.80 2008 500,000 591,015
Indianapolis Airport Authority Revenue Bonds Series 1993 (MBIA Insured) 6.00 2023 6,750,000 7,054,088
Jasper County Pollution Control Refunding Revenue Bonds
Northern Indiana Public Service Series 1989A (MBIA Insured) 7.50 2014 2,675,000 2,898,924
Jasper County Pollution Control Refunding Revenue Bonds
Northern Indiana Public Service Series 1991 (MBIA Insured) 7.10 2017 2,250,000 2,587,117
Marion County Hospital Authority Refunding Revenue Bonds Methodist Hospital
Series 1989 (MBIA Insured) 6.50 2013 4,000,000 4,309,600
Municipal Power Agency Power Supply System Refunding Revenue Bonds
Series 1989A (AMBAC Insured) 7.00 2009 2,000,000 2,293,440
State Health Facility Finance Authority Hospital Refunding Revenue Bonds
Columbus Regional Hospital Series 1993 (CG Insured) 7.00 2015 5,000,000 6,030,850
____________
25,765,034
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Kansas (2.1%)
Burlington Pollution Control Refunding Revenue Bonds
Kansas Gas & Electric Series 1991 (MBIA Insured) 7.00 % 2031 $10,000,000 $ 11,450,100
_____________________________________________________________________________________________________________________________
Kentucky (0.1%)
Jefferson County Multi-family Housing Revenue Bonds Brownsboro Gardens
Series 1986A (FHA Insured) 8.00 2026 395,000 412,060
Louisville & Jefferson County Airport Authority System Revenue Bonds
(MBIA Insured) 8.50 2017 300,000 346,494
____________
758,554
_____________________________________________________________________________________________________________________________
Louisiana (1.6%)
Energy & Power Authority Power Refunding Revenue Bonds Rodemacher Unit #2
Series 1991 (FGIC Insured) 6.75 2008 7,000,000 7,841,120
New Orleans Audubon Park Commission Aquarium Bonds Series 1988
(MBIA Insured) 7.90 2008 500,000 579,850
New Orleans International Airport Revenue Bonds Series A (FGIC Insured) 8.875 2017 565,000 670,050
____________
9,091,020
_____________________________________________________________________________________________________________________________
Maryland (1.6%)
Health & Higher Educational Facilities Authority Refunding Revenue
Bonds Greater Baltimore Medical Center (FGIC Insured) 5.00 2019 2,650,000 2,521,740
Health & Higher Educational Facilities Authority Revenue Bonds
Frederick Memorial Hospital Series 1993 (FGIC Insured) 5.00 2028 4,750,000 4,471,698
Health & Higher Educational Facilities Authority Revenue Bonds
Peninsula Regional Medical Center (MBIA Insured) 5.00 2023 2,000,000 1,896,700
____________
8,890,138
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Massachusetts (2.6%)
Boston Water & Sewer Commission Revenue Bonds General Subordinate Series A
(BIG Insured) 6.00 % 2008 $ 2,500,000 $ 2,595,100
Commonwealth General Obligation Bonds Consolidated Loan Series 1989C
(AMBAC Insured) 7.00 2009 1,500,000 1,734,180
Health & Educational Facilities Authority Revenue Bonds Boston College
Series J (FGIC Insured) 6.625 2021 2,250,000 2,481,953
Health & Educational Facilities Authority Revenue Bonds
Lahey Clinic Medical Center (MBIA Insured) 7.625 2018 2,200,000 2,565,244
Health & Educational Facilities Authority Revenue Bonds Northeastern University
Series 1989C (AMBAC Insured) 7.10 2006 1,000,000 1,156,190
Industrial Finance Agency Revenue Bonds Brandeis University (MBIA Insured) 6.80 2019 1,700,000 1,887,850
Quincy Refunding Revenue Bonds Quincy Hospital Series 1993 (FSA Insured) 5.25 2016 2,235,000 2,177,985
___________
14,598,502
_____________________________________________________________________________________________________________________________
Michigan (1.7%)
Carson City Crystal Area School Counties of Montcalm, Gratiot, Ionia & Clinton
School Building & Site 1993 Unlimited Tax General Obligation Bonds
(AMBAC Insured) 5.25 2019 2,725,000 2,709,631
Dearborn County of Wayne School District 1993 Unlimited Tax
General Obligation Refunding Bonds (MBIA Insured) 5.00 2010 2,175,000 2,160,428
Detroit Water Supply System Refunding Revenue Bonds Series 1993
(FGIC Insured) 5.00 2023 1,050,000 1,001,763
Wayne County Charter Airport Revenue Bonds
Detroit Metropolitan Wayne County Airport (FGIC Insured) 8.00 2014 675,000 752,571
West Bloomfield School District Oakland County School Building & Site
1994 Unlimited Tax General Obligation Bonds (MBIA Insured) 5.125 2014 3,000,000 (d) 2,927,610
___________
9,552,003
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Minnesota (3.2%)
Duluth Economic Development Authority Health Care Facility Revenue Bonds
Duluth Clinic Series 1992 (AMBAC Insured) 6.30 % 2022 $ 3,980,000 $ 4,363,871
Minneapolis/St. Paul Housing & Redevelopment Authority Health Care System
Revenue Bonds Healthspan Series 1993A (AMBAC Insured) 5.00 2013 2,500,000 2,444,400
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993A (AMBAC Insured) 5.20 2023 6,000,000 5,902,140
Western Municipal Power Agency Transmission Refunding Revenue Bonds
Series 1991 (AMBAC Insured) 6.75 2016 4,500,000 5,043,510
___________
17,753,921
_____________________________________________________________________________________________________________________________
Missouri (1.4%)
Kansas City School District Insured Leasehold Revenue Bonds
Capital Improvement (FGIC Insured) 5.00 2014 7,930,000 7,675,764
_____________________________________________________________________________________________________________________________
Montana (2.3%)
Forsyth Rosebud County Pollution Refunding Revenue Bonds
Puget Sound Power & Light (AMBAC Insured) 7.25 2021 4,000,000 4,627,680
State Board of Investments Payroll Tax Bonds Worker's Compensation Program
Series 1991 (MBIA Insured) 6.875 2020 7,000,000 7,905,800
___________
12,533,480
_____________________________________________________________________________________________________________________________
Nevada (2.1%)
Reno General Obligation Limited Tax Capital Improvement Bonds
(AMBAC Insured) 7.40 2007 1,000,000 1,171,040
Washoe County Gas & Water Facilities Refunding Revenue Bonds
Sierra Pacific Power Series 1993B (MBIA Insured) 5.90 2023 10,000,000 10,369,500
___________
11,540,540
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
New Hampshire (2.1%)
Industrial Development Authority Pollution Control Revenue Bonds
Light & Power Series 1989 (AMBAC Insured) 7.375% 2019 $ 5,000,000 $ 5,761,750
Turnpike System Refunding Revenue Bonds Series 1991A (FGIC Insured) 6.75 2011 5,000,000 5,873,750
___________
11,635,500
_____________________________________________________________________________________________________________________________
New Mexico (0.9%)
Farmington Pollution Control Refunding Revenue Bonds
Southern California Edison Series A (MBIA Insured) 5.875 2023 4,500,000 4,680,135
_____________________________________________________________________________________________________________________________
New York (0.8%)
Metropolitan Transportation Authority Commuter Facility Service Contract Bonds
Series L (AMBAC Insured) 7.50 2017 1,300,000 1,486,381
New York City General Obligation Bonds Series A (FGIC Insured) 8.125 2007 1,145,000 1,341,974
State Urban Development Correctional Facilities Revenue Bonds Series 1
(FSA Insured) 7.50 2020 1,500,000 1,783,815
___________
4,612,170
_____________________________________________________________________________________________________________________________
North Carolina (4.9%)
Charlotte Certificates of Participation Convention Facility
Series 1991 (AMBAC Insured) 6.75 2021 3,150,000 3,694,099
Charlotte Convention Facility Refunding Certificate of Participation
Series 1993C (AMBAC Insured) 5.25 2020 5,875,000 5,832,759
Cumberland County Hospital Refunding Bonds
Cumberland County Hospital System (MBIA Insured) 5.50 2014 1,000,000 1,029,550
Eastern Municipal Power Agency Power System Revenue Bonds
Series 1993A (FGIC Insured) 6.125 2010-11 5,560,000 5,986,730
Metropolitan Sewerage District of Buncombe County Refunding Revenue Bonds
Series 1993A (FGIC Insured) 5.50 2022 3,150,000 3,211,866
Municipal Power Agency #1 Catawba Electric Refunding Revenue Bonds
Series 1993 (MBIA Insured) 5.75 2020 7,000,000 7,147,700
___________
26,902,704
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
North Dakota (0.3%)
State Building Authority Refunding Lease Revenue Bonds
Series 1993A (AMBAC Insured) 6.00 % 2010 $ 1,500,000 $ 1,603,395
_____________________________________________________________________________________________________________________________
Ohio (1.0%)
Akron Bath & Copley Joint Township Hospital District Hospital
Refunding Revenue Bonds Childerns Hospital Medical Center Series 1993
(AMBAC Insured) 5.25 2020 2,000,000 1,991,300
Chillicothe Water System Refunding Revenue Bonds (MBIA Insured) 5.45 2014 2,000,000 2,047,820
Cuyahoga County Hospital Facility Revenue Bonds
Metrohealth System Series 1989 (MBIA Insured) 6.00 2019 1,500,000 1,557,330
____________
5,596,450
_____________________________________________________________________________________________________________________________
Oklahoma (0.9%)
Moore Public Works Authority Refunding Revenue Bonds Series 1989
(AMBAC Insured) 7.60 2006 2,700,000 3,152,898
Tulsa International Airport General Revenue Bonds Consolidated Fixed Rate
Series 1989 (MBIA Insured) 7.50 2008 1,500,000 1,693,875
___________
4,846,773
_____________________________________________________________________________________________________________________________
Pennsylvania (8.1%)
Allegheny County Airport Revenue Bonds Pittsburgh International
Series D (FGIC Insured) 7.75 2019 2,300,000 2,561,579
Armstrong County Hospital Authority Health Center Refunding Revenue Bonds
Canterbury PL (MBIA Insured) 6.50 2021 2,940,000 3,175,229
Lehigh County General Purpose Authority Fixed Rate Exempt Facility
Revenue Bonds Lehigh Pretreatment Plant Series 1984 (FGIC Insured) 7.25 2010 2,000,000 2,280,640
Montgomery County Industrial Development Authority Pollution Control
Refunding Revenue Bonds Philadelphia Electric Series 1991B (MBIA Insured) 6.70 2021 10,000,000 11,185,400
Pittsburgh Water & Sewer Authority Water & Sewer System
Refunding Revenue Bonds Series 1991A (FGIC Insured) 6.50 2014 10,000,000 11,553,200
Pittsburgh Water & Sewer Authority Water & Sewer System
Refunding Revenue Bonds Series 1993A (FGIC Insured) 5.00 2010 5,000,000 4,916,400
Robinson Township Municipal Authority Water & Sewer Revenue Bonds
(FGIC Insured) 6.00 2019 2,200,000 2,282,280
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Pennsylvania (cont'd)
State Higher Educational Facilities Authority Temple University
Revenue Bonds Series 1991-1 (MBIA Insured) 5.75 % 2031 $ 3,100,000 $ 3,165,906
Turnpike Commission Revenue Bonds Series 1989K (MBIA Insured) 7.50 2012 1,000,000 1,193,280
Turnpike Commission Revenue Bonds Series 1991L (MBIA Insured) 6.00 2015 2,500,000 2,651,100
___________
44,965,014
_____________________________________________________________________________________________________________________________
South Carolina (0.4%)
Grand Strand Water & Sewer Authority Water & Sewer System
Improvement Revenue Bonds (MBIA Insured) 7.00 2019 2,000,000 2,280,120
_____________________________________________________________________________________________________________________________
Tennessee (1.4%)
Knox County Health Education & Housing Facility Board Hospital Refunding
Revenue Bonds Fort Sanders Alliance Obligation Group Series 1993
(MBIA Insured) 5.75 2014 7,000,000 7,502,250
_____________________________________________________________________________________________________________________________
Texas (18.3%)
Austin Combine Utility System Revenue Bonds Series 1987 (BIG Insured) 8.625 2012-17 1,250,000 1,616,425
Austin Hotel Occupancy Tax Refunding Revenue Bonds Series 1993
(AMBAC Insured) 5.125 2014 3,000,000 (d) 2,911,830
Brazos River Authority Collateralized Pollution Control
Refunding Revenue Bonds Texas Utility Electric Series 1992 (AMBAC Insured) 6.75 2022 9,750,000 10,758,247
Brazos River Authority Collateralized Pollution Control
Refunding Revenue Bonds Texas Utility Electric Series 1992B (FGIC Insured) 6.625 2022 6,000,000 6,597,840
Brazos River Authority Collateralized Pollution Control
Refunding Revenue Bonds Texas Utility Electric Series 1992C (FGIC Insured) 6.70 2022 14,935,000 16,481,967
Colorado River Municipal Water District Water System Revenue Bonds
Series A (AMBAC Insured) 6.625 2021 8,900,000 10,053,351
Dallas County Utility & Reclamation District Unlimited Tax General Obligation
Refunding Bonds Series 1993 (MBIA Insured) 5.00 2009 2,000,000 1,983,120
East Criminal Justice Facilities Financing Corporation Mortgage Revenue Bonds
Angelina County Series 1993A (MBIA Insured) 5.25 2014 1,000,000 976,710
Harris County Health Facilities Development Hospital Revenue Bonds
State Children's Hospital Series 1989A (MBIA Insured) 7.00 2019 1,500,000 1,700,835
Harris County Public Facilities Corporation Detention Facility Mortgage
Revenue Bonds (MBIA Insured) 7.80 2011 1,000,000 1,186,690
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Texas (cont'd)
Harris County Toll Road Senior Lien Refunding Revenue Bonds
Series A (AMBAC Insured) 6.50 % 2017 $ 9,700,000 $ 10,719,179
League City General Obligation Refunding & Improvement Bonds Series 1990
(FGIC Insured) 6.25 2013 2,500,000 2,686,750
Lower Colorado River Authority Priority Refunding Revenue Bonds
Series 1990 (AMBAC Insured) 6.00 2015 6,715,000 6,978,900
Lower Colorado River Authority Priority Revenue Bonds Series 1990
(BIG Insured) 7.75 1996-10 600,000 661,638
Matagorda County Navigation District #1 Collateralized Pollution Control
Revenue Bonds Central Power & Light Series 1984A (AMBAC Insured) 7.50 2014 2,500,000 2,948,025
Matagorda County Navigation District #1 Pollution Control
Refunding Revenue Bonds Houston Light & Power Series E (FGIC Insured) 7.20 2018 2,150,000 2,451,151
Matagorda County Navigation District #1 Pollution Control Revenue Bonds
Central Power & Light Series 1990 (AMBAC Insured) 7.50 2020 2,000,000 2,299,660
Municipal Power Agency Refunding Revenue Bonds Series 1991A
(AMBAC Insured) 6.75 2012 5,250,000 5,914,545
North Central State Health Facilities Bonds Children's Medical Center
(BIG Insured) 7.875 2018 2,000,000 2,300,520
Tarrant County Health Facility Development Hospital Revenue Bonds
Adventist Health System/Sunbelt Series 1993
(CG Insured) 5.00 2013 1,250,000 1,198,250
Turnpike Authority Dallas North Tollway Revenue Bonds Series 1990
(AMBAC Insured) 6.00 2020 5,000,000 5,432,600
University of Houston System Consolidated Revenue Bonds Series 1990A
(MBIA Insured) 7.40 2006 3,160,000 3,695,114
___________
101,553,347
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Utah (0.6%)
Intermountain Power Agency Special Obligation Bonds 2nd Crossover Series
(FGIC Insured) 7.25 % 2017 $ 875,000 $ 961,012
Intermountain Power Authority Power Supply Refunding Revenue Bonds
Series 1987C (AMBAC Insured) 8.375 2012 900,000 1,049,517
Salt Lake City-County Airport Revenue Bonds Series 1989
(FGIC Insured) 7.875 2018 1,000,000 1,164,600
___________
3,175,129
_____________________________________________________________________________________________________________________________
Virginia (1.1%)
Roanoke County Water System Refunding Revenue Bonds (FGIC Insured) 5.00 2021 1,500,000 1,439,430
Southeastern Public Service Authority Refunding Revenue Bonds
Regional Solid Waste System Series 1989 (BIG Insured) 7.00 2013 4,000,000 4,608,480
____________
6,047,910
_____________________________________________________________________________________________________________________________
Washington (7.7%)
Everett School District #2 Unlimited Tax General Obligation Bonds
Series 1993 (MBIA Insured) 6.20 2009 5,000,000 5,411,950
Public Power Supply System Nuclear Project #1 Refunding Revenue Bonds
Series A (MBIA Insured) 7.50 2015 3,000,000 3,447,510
Public Power Supply System Nuclear Project #1 Refunding Revenue Bonds
Series 1992A (MBIA Insured) 6.25 2017 10,500,000 11,277,840
Public Power Supply System Refunding Revenue Bonds Nuclear Project #3
Series 1989A (BIG Insured) 6.00 2018 3,000,000 3,088,260
Public Power Supply System Refunding Revenue Bonds Nuclear Project #3
Series 1989A (BIG Insured) 7.25 2016 1,000,000 1,170,240
Snohomish County Public Utility District #1 General System Revenue Bonds
Series 1993 (FGIC Insured) 6.00 2013 12,920,000 13,655,406
Spokane Regional Solid Waste Management System Revenue Bonds Series 1989
(AMBAC Insured) 7.75 2011 300,000 346,080
Spokane Regional Solid Waste Management System Revenue Bonds Series 1989
(AMBAC Insured) 7.875 2007 1,250,000 1,450,113
State Health Care Facilities Authority Refunding Revenue Bonds
Dominican Health Service Spokane Series 1993 (CL Insured) 5.75 2020 2,800,000 2,852,500
___________
42,699,899
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Coupon Principal
Name of Issuer and Title of Issue (b)(c) Rate Maturity Amount Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
West Virginia (2.8%)
Board of Regents Registration Fee Revenue Bonds Series 1989B
(MBIA Insured) 7.40 % 2009 $ 2,000,000 $ 2,342,080
Hospital Finance Authority Hospital Revenue Bonds University Hospital
(MBIA Insured) 7.125 2006 1,000,000 1,101,920
School Building Authority Capital Improvement Revenue Bonds (MBIA Insured) 7.25 2015 3,415,000 4,034,583
School Building Authority Capital Improvement Revenue Bonds Series 1990B
(MBIA Insured) 6.75 2017 5,000,000 5,585,150
State Parkway Economic Development & Tourism Authority Parkway Revenue Bonds
Series 1989 (FGIC Insured) 7.125 2019 2,000,000 2,316,440
___________
15,380,173
_____________________________________________________________________________________________________________________________
Wyoming (1.0%)
State Municipal Power Agency Power Supply System Refunding Revenue Bonds
Series 1993A (MBIA Insured) 6.125 2016 5,000,000 5,327,600
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $486,449,332) $540,654,039
_____________________________________________________________________________________________________________________________
<CAPTION>
Short-term Securities (2.4%)
_____________________________________________________________________________________________________________________________
Annualized Amount
Yield on Date Payable at
Issuer (c)(e) of Purchase Maturity Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Municipal Notes
Gulf Coast Amoco V.R.D.B.
10-12-17 4.25% $2,000,000 (f) $ 2,000,000
Jackson County Mississippi Port Facilities Chevron V.R.D.B. Series 1993
06-01-23 4.25 5,000,000 (f) 5,000,000
Los Angeles County California T.R.A.N.
06-30-94 2.86 1,000,000 1,004,620
New York City Municipal Water Finance Authority V.R.D.B.
Series 1994C (FGIC Insured)
06-15-23 3.80 1,000,000 (f) 1,000,000
See accompanying notes to investments in securities.
/TABLE
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
Investments in Securities (continued)
_____________________________________________________________________________________________________________________________
Short-term Securities (continued)
_____________________________________________________________________________________________________________________________
Annualized Amount
Yield on Date Payable at
Issuer (c)(e) of Purchase Maturity Value(a)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Municipal Notes (cont'd)
New York City Municipal Water Finance Authority
Water & Sewer System Series 1993A B.A.N.
04-15-94 2.34% $ 500,000 $ 500,920
Texas T.R.A.N.
08-31-94 2.00 900,000 907,119
08-31-94 2.70 1,000,000 1,007,910
08-31-94 2.73 2,000,000 2,015,820
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $13,418,462) $ 13,436,389
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $499,867,794)(g) $554,090,428
_____________________________________________________________________________________________________________________________
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:
<CAPTION>
(Unaudited)
__________________________________________
Rating 12-31-93 06-30-93
_______________________________________________________________________________________________________
<S> <C> <C>
AAA 100% 100%
AA - -
A - -
BBB - -
Non-rated _ -
_______________________________________________________________________________________________________
Total 100% 100%
_______________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
<TABLE>
_____________________________________________________________________________________________________________________________
Notes to Investments in Securities
_____________________________________________________________________________________________________________________________
(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
CG -- Capital Guarantee
CL -- Connie Lee Insurance Company
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
(d) At Dec. 31, 1993, the cost of securities purchased on a when-issued basis was $10,574,188.
(e) The following abbreviations are used in portfolio descriptions:
B.A.N. -- Bond Anticipation Note
T.R.A.N. -- Tax & Revenue Anticipation Note
V.R.D.B. -- Variable Rate Demand Bond
(f) Interest rate varies to reflect current market conditions; rate shown is the effective rate
on Dec. 31, 1993.
(g) At Dec. 31, 1993, the cost of securities for federal income tax purposes was approximately $499,848,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
<CAPTION>
<S> <C>
Unrealized appreciation $54,324,000
Unrealized depreciation (82,000)
______________________________________________________________________________________________________
Net unrealized appreciation $54,242,000
______________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE
IDS Insured Tax-Exempt Fund
Directors and Officers
_____________________________________________________________________________
Directors of the Fund
William H. Dudley
executive vice president, IDS Financial Corporation
Robert F. Froehlke
previously president and chief executive officer of all funds in the IDS
MUTUAL FUND GROUP
David R. Hubers
president and chief executive officer, IDS Financial Corporation
Anne P. Jones
partner, Washington, D.C. law firm of Sutherland, Asbill & Brennan
Donald M. Kendall
former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
senior counsellor for national and international affairs, The Reader's
Digest Association, Inc.
Lewis W. Lehr
former chairman of the board and chief executive officer, Minnesota
Mining and Manufacturing Company
William R. Pearce
president and chief executive officer of all funds in the IDS MUTUAL
FUND GROUP
Aulana L. Peters
partner, law firm of Gibson, Dunn & Crutcher
Edson W. Spencer
president, Spencer Associates Inc.
John R. Thomas
senior vice president, IDS Financial Corporation
Wheelock Whitney
chairman, Whitney Management Company
_____________________________________________________________________________
Officers of the Fund
William R. Pearce
president and chief executive officer
Leslie L. Ogg
vice president, general counsel and treasurer
<PAGE>
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<PAGE>
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<PAGE>
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IDS Insured Tax-Exempt Fund
IDS MUTUAL FUND GROUP
__________________________________________________________________________
Specialty growth funds
Funds in this group aggressively seek capital growth, primarily from
international specialty common stocks. They are high risk mutual funds
with a potential for high reward.
IDS Precious Metals Fund, Inc.
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.
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.
IDS International Fund, Inc.
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The Fund may invest up to 20 percent of
its assets in the U.S. market.
IDS Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the world that
offer potential for superior growth. Holdings may range from small- to
large-capitalization stocks, including those of companies involved in
areas of rapid economic growth.
__________________________________________________________________________
Growth funds
Funds in this group seek capital growth, primarily from common stocks.
They are high risk mutual funds with a potential for high reward.
IDS Discovery Fund, Inc.
Invests in small- and medium-size, growth-oriented companies emphasizing
technological innovation and productivity enhancement. Buys and holds
larger growth-oriented stocks.
IDS Growth Fund, Inc.
Invests primarily in companies that have above-average potential for long-
term growth as a result of new management, marketing opportunities or
technological superiority.
IDS Strategy, Aggressive Equity Fund
Invests primarily in common stocks of companies that are selected for
their potential for above-average growth. Above-average means that their
growth potential is better, in the opinion of the Portfolio's investment
manager, than the Standard & Poor's Corporation (S&P) 500 Stock Index.
IDS New Dimensions Fund, Inc.
Invests primarily in companies with significant growth potential due to
superiority in technology, marketing or management. The Fund frequently
changes its industry mix.
IDS Progressive Fund, Inc.
Invests primarily in undervalued common stocks. The Fund holds stocks
for the long-term with the goal of capital growth.<PAGE>
PAGE
IDS Insured Tax-Exmept Fund
IDS MUTUAL FUND GROUP (Continued)
__________________________________________________________________________
Growth and income funds
These funds focus on securities of medium to large, well-established
companies that offer long-term growth of capital and reasonable income
from dividends and interest. Moderate risk.
IDS Managed Retirement Fund, Inc.
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.
IDS Equity Plus Fund, Inc.
Invests primarily in a combination of moderate growth stocks, higher-
yielding equities and bonds. Seeks growth of capital and income.
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by IDS research analysts as the best from
each industry represented on the index. Offers potential for long-term
growth as well as dividend income.
IDS Stock Fund, Inc.
Invests primarily in common stocks of companies representing many sectors
of the economy. Seeks current income and growth of capital.
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential for
growth of capital and income.
IDS Utilities Income Fund, Inc.
Invests primarily in the stocks of public utility companies to seek high
current income and growth of income and capital with reduced volatility.
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.
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.
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Tax-exempt income funds
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, Inc.
Invests primarily in medium- and lower-quality municipal bonds and notes.
Lower quality securities generally involve greater risk of principal and
income.
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IDS Insured Tax-Exempt Fund
IDS MUTUAL FUND GROUP (Continued)
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Tax-exempt income funds (continued)
IDS State Tax-Exempt Funds
(California, Massachusetts, Michigan, Minnesota, New York, Ohio)
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.)
IDS Tax-Exempt Bond Fund, Inc.
Invests mainly in bonds and notes of state or local government units,
with at least 75 percent in the four highest-rated, lowest-risk bond
categories.
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.
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Income funds
The funds in this group invest their assets primarily in corporate bonds
or government securities to seek interest income. Secondary objective is
capital growth. Risk varies by bond quality.
IDS 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.
IDS Extra Income Fund, Inc.
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.
IDS Bond Fund, Inc.
Invests mainly in corporate bonds, at least 50 percent in the higher-
rated, lower-risk bond categories, or the equivalent, and in government
bonds.
IDS Strategy, Income Fund
Invests primarily in corporate and government bonds to seek high current
income while conserving capital. Also may seek capital appreciation when
consistent with its primary goals.
IDS Selective Fund, Inc.
Invests in high-quality corporate bonds and other highly rated debt
instruments, including government securities and short-term investments.
Seeks current income and preservation of capital.
IDS Federal Income Fund, Inc.
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.<PAGE>
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IDS Insured Tax-Exempt Fund
IDS MUTUAL FUND GROUP (Continued)
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Income funds (continued)
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and notes to
seek a high level of current income.
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Money market funds
These money market funds have three main goals: conservation of capital,
constant liquidity and the highest possible current income consistent
with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high-quality commercial paper,
bankers' acceptances, certificates of deposit (CDs) and other bank
securities.
IDS Planned Investment Account
Invests in money market securities to provide maximum current income
consistent with liquidity and stability of principal, while serving as a
base for systematic exchanges into IDS fixed income and equity funds.
IDS Tax-Free Money Fund, Inc.
Invests primarily in short-term bonds and notes issued by state and local
governments to seek high current income exempt from federal income taxes.
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For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your IDS personal
financial planner or writing to IDS Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534. Read it carefully before you invest or send
money. This semiannual report is approved for use only if preceded or
accompanied by a prospectus for the Fund.
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1993 SEMIANNUAL REPORT
IDS Insured Tax-Exempt Fund
IDS MUTUAL FUND GROUP
IDS Tower 10
Minneapolis, Minnesota 55440-0010
