<PAGE>
PAGE 1
IDS Insured Tax-Exempt Fund
1995 annual report
(prospectus enclosed)
(Icon of) eagle's head enclosed in shield
The goals of IDS Insured Tax-Exempt Fund, a part of IDS Special
Tax-Exempt Series Trust, are to provide a high level of income
generally exempt from federal income tax and preservation of
shareholders' capital. The fund invests primarily in securities
that are insured as to their scheduled payment of principal and
interest for at least as long as the securities are held in the
fund. Insured securities fluctuate in market value as interest
rates change.
(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) eagle's head enclosed in shield
No-default insurance
Any investment involves risks. For a municipal bond investor,
there's the risk that the bond issuer could default on its
payments. But there are bonds that are insured against default,
and these are the ones that Insured Tax-Exempt Fund invests in.
While this doesn't mean that shareholders are insulated from
fluctuations in bond market values, it does ensure that all
principal and interest will be paid. Along the way, shareholders
enjoy regular income that is generally free from federal income
tax.<PAGE>
PAGE
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 20
IDS mutual funds 30
Federal income tax information 33
1995 prospectus
The fund in brief
Goal 3p
Types of fund investments and their risks 3p
Manager and distributor 3p
Portfolio manager 3p
Alternative sales arrangements 4p
Sales charge and fund expenses 5p
Performance
Financial highlights 7p
Total returns 8p
Yield 9p
Key terms 10p
Investment policies
Facts about investments and their risks 11p
Alternative investment option 16p
Valuing assets 16p
How to buy, exchange or sell shares
Alternative sales arrangements 17p
How to buy shares 19p
How to exchange shares 22p
How to sell shares 22p
Reductions and waivers of the sales charge 27p
Special shareholder services
Services 32p
Quick telephone reference 32p
<PAGE>
PAGE 4
Distributions and taxes
Dividend and capital gain distributions 33p
Reinvestments 34p
Taxes 35p
How the fund is organized
Shares 38p
Voting rights 39p
Shareholder meeting 39p
Trustees and officers 39p
Investment manager and transfer agent 41p
Distributor 42p
About American Express Financial Corporation
General information 43p
Appendices
1995 federal tax information 44p
Descriptions of derivative instruments 46p
<PAGE>
PAGE 5
To our shareholders
(Photo of) William R. Pearce
President of the Fund
(Photo of) Paul B. Hylle
Portfolio manager
From the president
As I indicated in the fund's previous reports, new agreements
between the fund and American Express Financial Corporation were
approved by shareholders in November 1994. The new agreements
became effective when the fund began offering multiple classes of
shares on March 20, 1995.
The advantage of offering more than a single class of shares is
that investors may choose how they wish to pay sales charges. A
portion of these charges compensates your American Express
financial advisor (formerly called your IDS planner), who is
committed to providing you with outstanding services.
Adding new classes of mutual fund shares does make the presentation
of financial information in this report more complex. However, we
will continue our effort to make the reports easier to read and
understand. Meanwhile, your American Express financial advisor is
available to answer your questions.
William R. Pearce
From the portfolio manager
After suffering through one of its worst declines in decades last
year, the bond market staged a remarkable rally during the first
half of 1995. Although they weren't at the forefront of the
advance, municipal bonds gained considerable ground and propelled
IDS Insured Tax-Exempt Fund well into positive territory for the
fiscal year -- July 1994 through June 1995. (Note: The fund's
performance was affected by its investments in futures contracts.)
Last year's bond market slide began in earnest in February, when
the Federal Reserve began raising short-term interest rates to slow
down economic growth and thereby restrain inflation. That policy
continued the rest of the year. Professional bond investors
reacted by selling bonds in great numbers, driving down prices in
the process and fueling a sustained increase in long-term interest
rates. These developments most negatively affected longer-term
bonds because the longer the maturity, the more a bond's price is
affected by interest rate changes.
Staying the course
Although the municipal market was hit hard last fall, because of
our belief that most of the damage had been done we did not engage
in panic selling. In fact, we stayed virtually fully invested--
keeping nearly all the assets in bonds and holding only a small
amount of cash. In addition, we employed a strategy of buying
bonds at moderate discounts, which helped minimuze price declines
without sacrificing performance. This worked to the fund's benefit<PAGE>
PAGE 6
when the market began to improve late in the year.
Municipal bonds performed especially well during the winter, as
healthy demand and a relatively low supply of bonds complemented
the favorable interest-rate trend. The pace of municipals' advance
slowed down in the spring, though, as talk of tax reform tempered
investors' enthusiasm for tax-free bonds. While some modest tax
reform may well take place, the more extreme forms of a single-rate
flax tax or a pure consumption-based tax appear unlikely to become
law.
Favorable factors remain in place
While it's unlikely that the bond market will maintain its furious
pace during the second half of 1995, we do think the investment
environment remains positive. The main source of our optimisn is
mounting evidence that the economy has cooled down, which we expect
to help keep inflation under control. In fact, just after the
close of the fund's fiscal year, the Federal Reserve, noting that
it believed that inflation pressures were easing, lowered short-
term interest rates for the first time in three years.
Another factor working in the fund's favor is that demand for
municipal bonds remains stable while supply is decreasing. What's
more, municipal bonds continue to offer above-average value
compared with other fixed-income securities. Assuming interest
rates follow a stable-to-declining path in the months ahead, we
expect municipals to continue to deliver solid performance.
Paul B. Hylle
Class A
12-month performance
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.40
June 30, 1994 $ 5.35
Increase $ 0.05
Distributions
July 1, 1994 - June 30, 1995
From income $ 0.30
From capital gains $ --
Total distributions $ 0.30
Total return** +6.7%***
Class B
March 20, 1995 - June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.40
March 20, 1995* $ 5.47
Decrease $ (0.07)
<PAGE>
PAGE 7
Distributions
March 20, 1995 - June 30, 1995
From income $ 0.09
From capital gains $ --
Total distributions $ 0.09
Total return** + 0.4%***
Class Y
March 20, 1995 - June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.41
March 20, 1995* $ 5.47
Decrease $ (0.06)
Distributions
March 20, 1995* - June 30, 1995
From income $ 0.08
From capital gains $ --
Total distributions $ 0.08
Total return** +0.4%***
* Inception date.
** The prospectus discusses the effects of sales charge, if any, on
the various classes.
***The total return is a hypothetical investment in the fund with
all distributions reinvested.<PAGE>
PAGE 8
<TABLE>
<CAPTION>
IDS Insured Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 20.09% of the fund's
net assets
_____________________________________________________________________________________
Percent Value
(of fund's net assets) (as of June 30, 1995)
_____________________________________________________________________________________
<S> <C> <C>
Brazo River Texas Authority Collateralized Pollution
Control Refunding Revenue Bonds Texas Utility Electric
Series 1992C
6.70% 2022 3.05%$15,570,484
Pittsburg, Pennsylvania Water & Sewer Authority
Water & Sewer System Refunding Revenue Bonds
Series 1991A
6.50% 2014 2.17 11,097,900
State Energy Resource & Development Authority
Solid Waste Disposal Revenue Bonds AMT New York State
Electric & Gas Series A
5.70% 2028 2.04 10,422,722
Denver City & County Airport Revenue Bonds AMT
Series B 2.01 10,272,113
District of Columbia Metropolitan Washington Airports
Authority Airport System Revenue Bonds AMT Series 1992A
6.625% 2019 1.92 9,818,749
Colorado River Texas Municipal Water District
Water System Pre-Refunded Revenue Bonds Series A
6.625% 2021 1.90 9,717,732
District of Columbia Metropolitan Washington Airports
Authority Airport System Revenue Bonds AMT Series 1994A
5.75% 2020 1.85 9,428,300
San Diego County California Certificate of Participation
Regional Authority Bonds Series 1991 Mt. Tower
Inverse Floater
6.363% 2019 1.79 9,126,540
Harris County Texas Toll Road Senior Lien Pre-Refunded
Revenue Bonds Series A
6.50% 2017 1.78 9,105,220
<PAGE>
PAGE 9
Austin Texas Combine Utility System Refunding
Revenue Bonds Series 1994
5.75% 2024 1.58 8,086,560
Note: Certain of the fund's investment income may be subject to the Alternative
Minimum Tax.
</TABLE>
<PAGE>
PAGE 10
Making the most of your fund
Average annual total return
(as of June 30, 1995)
Class A
1 year 5 years Since inception*
+1.32% +6.64% +6.55%
*Aug. 18, 1986
Total returns for Class A, Class B and Class Y for the period from
March 20, 1995 to June 30, 1995 were -4.5%, -4.6% and +0.4%,
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 reflect the deduction of the maximum sales charge as
discussed in the prospectus. This was a period of widely
fluctuating security prices. Past performance is no guarantee of
future results.
Build your assets systematically
To keep your assets growing steadily, 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 11
(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.
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 stock dividends, interest
and short-term gains exceed 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 Insured Tax-Exempt Fund
Average annual total return
(as of June 30, 1995)
Since
1 year 5 years inception* $17,513
+1.32% +6.64% +6.55% Insured Tax-Exempt Fund
Lehman Total Return
Muni Index
$10,000
$ 9.500
'86 '87 '88 '89 '90 '91 '92 '93 '94 '95
*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 June 30, 1995 were -4.5%, -4.6%,
+0.4% 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.
Assumes: Holding period from 9/1/86 to 6/30/95. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $7,285.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
<PAGE>
PAGE 12
On the graph above you can see how the fund's total return compared
to a widely cited performance index, the Lehman Total Return Muni
Index. In comparing Insured Tax-Exempt Fund to this 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 indexes. If you were actually
to buy individual bonds, any sales charges that you pay would
reduce your total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Average annual total return figures reflect the deduction of the
maximum sales charge as discussed in the prospectus. This was a
period of widely fluctuating security prices. Past performance is
no guarantee of future results.<PAGE>
PAGE 13
Independent auditors' report
___________________________________________________________________
The board of trustees and shareholders
IDS Special Tax-Exempt Series Trust:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments in securities,
of IDS Insured Tax-Exempt Fund (a fund within IDS Special Tax-
Exempt Series Trust) as of June 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
June 30, 1995, and the financial highlights for each of the years
in the six-year period ended June 30, 1995, the six months ended
June 30, 1989, each of the years in the two-year period ended
December 31, 1988, and the period from August 18, 1986
(commencement of operations), to December 31, 1986. 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
Insured Tax-Exempt Fund at June 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 June 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
August 4, 1995
<PAGE>
PAGE 14
Financial statements
Statement of assets and liabilities
IDS Insured Tax-Exempt Fund
June 30, 1995
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________
<S> <C>
Investments in securities, at value (Note 1)
(identified cost $486,025,646) $511,043,524
Accrued interest receivable 9,581,748
Receivable for investment securities sold 98,015
_____________________________________________________________________________________________________________
Total assets 520,723,287
_____________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 147,050
Dividends payable to shareholders 297,185
Payable for investment securities purchased 9,168,790
Accrued investment management services fee 149,679
Accrued distribution fee 2,707
Accrued service fee 57,493
Accrued transfer agency fee 16,324
Accrued administrative services fee 12,214
Other accrued expenses 33,202
_____________________________________________________________________________________________________________
Total liabilities 9,884,644
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares $510,838,643
_____________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________
Shares of beneficial interest - $.01 par value, unlimited number of shares authorized; $ 946,621
Additional paid-in capital 497,315,287
Undistributed net investment income 5,732
Accumulated net realized loss (Note 1) (12,446,875)
Unrealized appreciation 25,017,878
_____________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding shares $510,838,643
_____________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $504,568,357
Class B $ 6,269,279
Class Y $ 1,007
Net asset value per share of outstanding shares: Class A shares 93,501,438 $ 5.40
Class B shares 1,160,465 $ 5.40
Class Y shares 186 $ 5.41
See accompanying notes to financial statements. <PAGE>
PAGE 15
Financial statements
Statement of operations
IDS Insured Tax-Exempt Fund
Year ended June 30, 1995
_____________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________
Income:
Interest $32,104,013
_____________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 2,560,188
Distribution fee
Class A 75,677
Class B 6,352
Transfer agency fee 266,187
Incremental transfer agency fee - Class B 50
Service fee
Class A 253,810
Class B 1,572
Administrative services fee 54,360
Compensation of trustees 6,509
Compensation of officers 5,702
Custodian fees 25,993
Postage 32,725
Registration fees 54,585
Reports to shareholders 8,481
Audit fees 17,500
Administrative 1,910
Other 1,842
_____________________________________________________________________________________________________________
Total expenses 3,373,443
_____________________________________________________________________________________________________________
Investment income -- net 28,730,570
_____________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________
Net realized gain on security transactions (Note 3) 1,798,609
Net realized loss on closed interest rate futures contracts (11,694,275)
Net realized gain on exercised option contracts written (Note 6) 217,000
_____________________________________________________________________________________________________________
Net realized loss on investments (9,678,666)
Net change in unrealized appreciation or depreciation 12,668,289
_____________________________________________________________________________________________________________
Net gain on investments 2,989,623
_____________________________________________________________________________________________________________
Net increase in net assets resulting from operations $31,720,193
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 16
Financial statements
Statements of changes in net assets
IDS Insured Tax-Exempt Fund
Year ended June 30,
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________
Operations and distributions 1995 1994
_____________________________________________________________________________________________________________
<S> <C> <C>
Investment income -- net $ 28,730,570 $ 27,960,399
Net realized loss on investments (9,678,666) (631,384)
Net change in unrealized appreciation or depreciation 12,668,289 (28,613,958)
_____________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations 31,720,193 (1,284,943)
_____________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (28,692,222) (27,955,386)
Class B (40,346) --
Class Y (10) --
Net realized gain
Class A -- (129,500)
_____________________________________________________________________________________________________________
Total distributions (28,732,578) (28,084,886)
_____________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 74,499,609 153,720,129
Class B shares 6,369,393 --
Class Y shares 1,020 --
Reinvestment of distributions at net asset value
Class A shares 20,325,958 20,296,120
Class B shares 31,095 --
Class Y shares 10 --
Payments for redemptions
Class A shares (118,788,670) (83,052,989)
Class B shares (Note 2) (26,911) --
_____________________________________________________________________________________________________________
Increase (decrease) in net assets from share transactions (17,588,496) 90,963,260
_____________________________________________________________________________________________________________
Total increase (decrease) in net assets (14,600,881) 61,593,431
Net assets at beginning of year 525,439,524 463,846,093
_____________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income of
$5,732 and $5,013) $510,838,643 $525,439,524
_____________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 17
Notes to financial statements
IDS Insured Tax-Exempt Fund
___________________________________________________________________
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 currently composed 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.
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) differ among classes. Income, expenses
(other than class specific expenses) and realized and unrealized
gains or losses on investments are allocated to each class of
shares based upon its relative net assets.
Significant accounting policies followed by the fund are summarized
below:
Valuation of securities
All securities are valued at the close of each business day.
Securities 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.
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 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.<PAGE>
PAGE 18
The fund also 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 will 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.
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
effect the fund's net assets the same as owned securities. The fund
designates cash or liquid high-grade debt securities at least equal
to the amount of its commitment. As of June 30, 1995, the fund had
entered into oustanding when-issued or forward commitments of
$9,086,501.
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<PAGE>
PAGE 19
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, accumulated net realized loss
has been increased by $2,727 and undistributed net investment
income has been increased by $2,727.
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.
At June 30, 1995, American Express Financial Corporation (AEFC)
owns 186 Class Y shares.
___________________________________________________________________
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 the terms of a 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. The transfer agency fee was reduced by
earnings on monies pending shareholder redemptions.
Effective March 20, 1995, when the fund began offering multiple
classes of shares, the fund entered into agreements with AEFC for
managing its portfolio, provding 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 follow:<PAGE>
PAGE 20
o Class A $15.50
o Class B $16.50
o Class Y $15.50
Also effective March 20, 1995, the fund entered into agreements
with American Express Financial Advisors Inc. for distribution and
shareholder servicing-related services as follows: Under the 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 $1,522,159 for Class A and $32 for
Class B for the year ended June 30, 1995.
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 $3,828 for the year ended June 30, 1995.
___________________________________________________________________
3. Securities transactions
Cost of purchases and proceeds from sales of securities (other than
short-term obligations) aggregated $264,940,607 and $294,099,294,
respectively, for the year ended June 30, 1995. Realized gains and
losses are determined on an identified cost basis.
___________________________________________________________________
4. Share transactions
Transactions in shares of the fund for the periods indicated are as
follows:<PAGE>
PAGE 21
<TABLE>
<CAPTION>
_______________________________________________________________________________________
Period ended June 30, 1995 Year ended
06/30/94
Class A Class B* Class Y* Class A
_______________________________________________________________________________________
<S> <C> <C> <C> <C>
Sold 14,090,841 1,159,679 184 27,036,137
Issued for reinvested
distributions 3,817,110 5,658 2 3,605,846
Redeemed (22,569,639) (4,872) -- (14,841,541)
_______________________________________________________________________________________
Net increase (decrease) (4,661,688) 1,160,465 186 15,800,442
_______________________________________________________________________________________
*Inception date was March 20, 1995 for Class B and for Class Y.
______________________________________________________________________________
</TABLE>
5. Capital loss carryover
For federal income tax purposes, the fund has a capital loss
carryover of $1,334,445 at June 30, 1995, that will expire in 1996
through 2003 if not offset by subsequent capital gains. It is
unlikely the board of trustees will authorize a distribution of any
net realized capital gains until the available capital loss
carryover has been offset or expires.
___________________________________________________________________
6. Option contracts written
The number of contracts and premium amounts associated with option
contracts written is as follows:
Year ended June 30, 1995
_____________________________
Calls
Contracts Premium
________________________________________________
Balance June 30, 1994 -- $ --
Opened 250 217,000
Exercised (250) (217,000)
________________________________________________
Balance June 30, 1995 -- $ --
________________________________________________
__________________________________________________________________
7. Financial highlights
"Financial highlights" showing per share data and selected
information is presented on page 7 of the prospectus.
<PAGE>
PAGE 22
<TABLE>
<CAPTION>
Investments in securities
IDS Insured Tax-Exempt Fund (Percentages represent value of
June 30, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (97.8%)
_____________________________________________________________________________________________________________________________
Name of issuer and title of issue (b,c,d) Coupon Maturity Principal Value(a)
rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Alabama (0.7%)
Mobile General Obligation Capital Improvement Warrants Convention Center
Pre-Refunded Bonds Series 1990 (AMBAC Insured) 7.125% 2020 $ 3,000,000 $ 3,383,760
_____________________________________________________________________________________________________________________________
Arizona (0.6%)
Chandler Water & Sewer Refunding Revenue Bonds Series 1991 (FGIC Insured) 7.00 2012 1,250,000 1,369,237
Health Facilities Authority Hospital System Refunding Revenue Bonds
Phoenix Baptist Hospital Series 1992 (MBIA Insured) 6.25 2011 1,650,000 1,705,193
____________
Total 3,074,430
_____________________________________________________________________________________________________________________________
California (15.3%)
Alameda County Certificate of Participation Refunding Bonds
Santa Rita Jail (MBIA Insured) 5.00 2015 3,250,000 2,866,597
Brea Redevelopment Agency Tax Allocation Refunding Bonds
(MBIA Insured) 5.50 2017 3,250,000 3,022,305
Concord Redevelopment Agency Tax Allocation
Central Concord Redevelopment (AMBAC Insured) 5.25 2013 4,250,000 3,928,403
Eastern Municipal Water District Riverside County Water & Sewer
Pre-Refunded Revenue Certificates of Participation Series 1991
(FGIC Insured) 6.50 2020 5,460,000 6,072,721
Fontana Unified School District San Bernardino County
General Obligation Convertible Capital Appreciation Bonds
Series 1990C Zero Coupon (FGIC Insured) 6.15 2020 6,000,000 (e) 5,340,000
Fresno Health Facility Revenue Bonds Holy Cross-St. Agnes
(Secondary MBIA Insured) 6.625 2021 2,000,000 2,095,100
Los Angeles Department of Water & Power Waterworks
Refunding Revenue Bonds (Secondary FGIC Insured) 4.50 2023 2,000,000 1,571,300
Northern California Transmission Select Auction
Variable Rate Security & Residual Interest Revenue Bonds Inverse Floater5.50 2024 2,500,000 (f) 2,319,700
Orange County Redevelopment Agency Tax Allocation
Refunding Revenue Bonds Southwest Redevelopment Series A (AMBAC Insured)5.70 2023 3,000,000 2,819,760
Pittsburg Public Financing Authority Wastewater Refunding Revenue Bonds
Series A (FGIC Insured) 5.125 2015 2,895,000 2,605,761
Pittsburg Redevelopment Agency Los Medanos Development Tax Allocation
Refunding Bonds Series 1993A (AMBAC Insured) 5.00 2017 2,800,000 2,447,228
Rancho Cucamonga Redevelopment Agency Rancho Redevelopment Tax Allocation
Refunding Bonds Series 1994 (MBIA Insured) 5.00 2015 3,485,000 3,083,807
San Bernardino County Medical Center Financing Certificate of Participation
Series A (MBIA Insured) 5.50 2022 5,000,000 4,598,200
San Diego County Certificate of Participation Regional Authority Bonds
Series 1991 Mt. Tower Inverse Floater (MBIA Insured) 6.363 2019 9,000,000 (f) 9,126,540
San Diego Industrial Development Refunding Revenue Bonds
San Diego Gas & Electric Series C (Secondary MBIA Insured) 5.90 2018 5,400,000 5,233,842
See accompanying notes to investments in securities.<PAGE>
PAGE 23
San Francisco City & County Certificate of Participation
San Francisco Courthouse Series 1995 (CGIC Insured) 5.60 2016 2,500,000 2,364,925
San Jose Redevelopment Agency Merged Area Redevelopment
Tax Allocation Bonds Series 1993 (MBIA Insured) 4.75 2024 2,400,000 1,954,248
San Jose Redevelopment Agency Merged Area Redevelopment
Tax Allocation Bonds Series 1993 (MBIA Insured) 5.25 2016 1,250,000 1,139,962
San Mateo County Joint Power Financing Authority Lease Revenue Bonds
San Mateo County Health Center Series 1994A (FSA Insured) 5.75 2022 1,500,000 1,404,510
State Public Works Board Lease Revenue Bonds Department of Justice Building
Series A (FSA Insured) 5.80 2015 2,000,000 1,937,980
State Public Works Board Lease Revenue Bonds University of California
Series A (AMBAC Insured) 6.40 2016 2,000,000 2,042,380
State University & Colleges Student Union Revenue Bonds Fresno University
Series B (AMBAC Insured) 5.80 2025 1,410,000 1,347,044
State Unlimited Tax General Obligation Bonds (Secondary FGIC Insured) 4.75 2023 2,500,000 2,045,425
Statewide Community Development Authority Certificate of Participation
Sutter Health Obligated Group (MBIA Insured) 5.50 2022 6,250,000 (g) 5,678,500
Statewide Community Development Authority Revenue
Certificate of Participation Bonds Sisters of Charity
(Secondary MBIA Insured) 5.00 2023 1,500,000 1,273,095
____________
Total 78,319,333
_____________________________________________________________________________________________________________________________
Colorado (3.2%)
Colorado Springs Hospital Refunding Revenue Bonds (MBIA Insured) 6.00 2024 1,815,000 1,792,676
Denver City & County Airport Revenue Bonds AMT Series B (MBIA Insured) 5.75 2017 10,940,000 10,272,113
Douglas County School District General Obligation Improvement Bonds
Series 1994A (MBIA Insured) 6.50 2016 1,500,000 1,587,450
Metro Wastewater Reclamation District Sewer Refunding Bonds
Series 1993B (AMBAC Insured) 4.75 2012 1,750,000 1,542,608
State Board of Trustees of Colleges in Colorado Auxiliary
Facility System Enterprise Revenue Bonds Western State College
Series 1994C (MBIA Insured) 5.625 2015 1,250,000 1,217,087
____________
Total 16,411,934
_____________________________________________________________________________________________________________________________
Delaware (0.2%)
Health Facilities Authority Refunding Revenue Bonds
Medical Center of Delaware Series 1989 (MBIA Insured) 7.00 2015 1,000,000 1,078,300
_____________________________________________________________________________________________________________________________
District of Columbia (4.4%)
Howard University Revenue Bonds Series A (MBIA Insured) 8.00 2017 1,500,000 1,633,620
Metropolitan Washington Airports Authority Airport System
Revenue Bonds Series 1992A (MBIA Insured) 6.625 2019 9,420,000 9,818,749
Metropolitan Washington Airports Authority Airport System
Revenue Bonds AMT Series 1994A (MBIA Insured) 5.75 2020 10,000,000 9,428,300
Unlimited Tax General Obligation Refunding Bonds Series B-2
(FSA Insured) 5.50 2010 2,000,000 1,877,840
____________
Total 22,758,509
_____________________________________________________________________________________________________________________________
Florida (2.2%)
Dade County Aviation Revenue Bonds AMT Series B (MBIA Insured) 6.60 2022 2,440,000 2,538,991
Department of Transportation Turnpike Revenue Bonds Series 1991A
(AMBAC Insured) 6.25 2020 1,250,000 1,263,662
Fort Myers Utility System Refunding Revenue Bonds Series 1989A
(BIG Insured) 6.00 2019 2,000,000 1,999,760
Gulf Breeze Local Government Loan Program Boca Raton Series 1985E
(FGIC Insured) 7.75 2015 2,000,000 2,254,620
Orange County Health Facility Authority Revenue Bonds Series 1995
Adventist Health System Sunbelt Obligated Group (AMBAC Insured) 5.25 2020 1,250,000 1,118,062<PAGE>
PAGE 24
Osceola County Transportation Pre-Refunded Revenue Bonds
Series 1988A (FGIC Insured) 7.70 2013 1,215,000 1,348,371
Palm Beach County Solid Waste Authority Revenue Bonds Series 1984
(BIG Insured) 8.375 2010 500,000 548,335
____________
Total 11,071,801
_____________________________________________________________________________________________________________________________
Georgia (2.6%)
Atlanta Metropolitan Rapid Transit Authority Sales Tax
Pre-Refunded Revenue Bonds Series L (AMBAC Insured) 7.20 2020 3,000,000 3,346,230
Chatham County Hospital Authority Revenue Bonds Memorial Medical Center
Series 1990A (MBIA Insured) 7.00 2021 4,500,000 4,899,285
Fulton County Water & Sewer Revenue Bonds Non-Callable (FGIC Insured) 6.375 2014 3,250,000 3,441,295
Municipal Electrical Authority Power Revenue Bonds Series M (BIG Insured) 8.10 2012 1,080,000 1,155,265
Municipal Electrical Authority Special Obligation Refunding Bonds
2nd Crossover Series (AMBAC Insured) 7.80 2020 500,000 544,635
____________
Total 13,386,710
_____________________________________________________________________________________________________________________________
Illinois (4.3%)
Chicago O'Hare International Airport General Refunding Revenue Bonds
Second Lien Series A (MBIA Insured) 6.375 2015 5,000,000 5,120,700
Chicago O'Hare International Airport General Revenue Bonds Series 1990A
(AMBAC Insured) 7.50 2016 2,000,000 2,173,980
Chicago O'Hare International Airport Terminal Revenue Bonds (MBIA Insured)7.625 2010 3,000,000 3,275,700
Chicago Public Building Commission Pre-Refunded Revenue Bonds
(MBIA Insured) 7.70 2008 1,000,000 1,081,130
Chicago Public Building Commission Pre-Refunded Revenue Bonds
Series 1989A (FGIC Insured) 7.75 2006 1,000,000 1,122,030
Chicago Public Building Commission Pre-Refunded Revenue Bonds
Series 1990A (MBIA Insured) 7.125 2015 5,000,000 5,459,400
Cook County Unlimited Tax General Obligation Bonds (FGIC Insured) 5.50 2022 2,535,000 2,325,710
Northern Cook County Solid Waste Agency Contract Revenue Bonds
(MBIA Insured) 6.50 2012 1,200,000 1,245,216
____________
Total 21,803,866
_____________________________________________________________________________________________________________________________
Indiana (2.0%)
Educational Facilities Authority Pre-Refunded Bonds Valpraiso University
(BIG Insured) 7.80 2008 500,000 562,060
Marion County Hospital Authority Refunding Revenue Bonds Methodist Hospital
Series 1989 (MBIA Insured) 6.50 2013 4,000,000 4,136,840
State Health Facility Finance Authority Hospital Refunding Revenue Bonds
Columbus Regional Hospital Series 1993 (CGIC Insured) 7.00 2015 5,000,000 5,579,250
____________
Total 10,278,150
_____________________________________________________________________________________________________________________________
Kentucky (0.1%)
Jefferson County Multi-family Housing Revenue Bonds AMT Brownsboro Gardens
Series 1986A (FHA Insured) 8.00 2026 385,000 392,096
Louisville & Jefferson County Airport Authority System Revenue Bonds AMT
(MBIA Insured) 8.50 2017 300,000 327,951
____________
Total 720,047
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 25
Louisiana (1.7%)
Energy & Power Authority Power Refunding Revenue Bonds Rodemacher Unit #2
Series 1991 (FGIC Insured) 6.75 2008 7,000,000 7,535,290
New Orleans Audubon Park Commission Aquarium Pre-Refunded Bonds
Series 1988 (MBIA Insured) 7.90 2008 500,000 549,280
New Orleans International Airport Pre-Refunded Revenue Bonds Series A
(FGIC Insured) 8.875 2017 565,000 628,455
____________
Total 8,713,025
_____________________________________________________________________________________________________________________________
Maine (0.3%)
State Turnpike Authority Turnpike Revenue Bonds (MBIA Insured) 6.00 2018 1,790,000 1,761,467
_____________________________________________________________________________________________________________________________
Maryland (1.7%)
Baltimore Refunding Revenue Bonds Wastewater Series 1994A
(FGIC Insured) 5.00 2022 1,000,000 864,700
Health & Higher Educational Facilities Authority Refunding Revenue
Bonds Greater Baltimore Medical Center (FGIC Insured) 5.00 2019 2,650,000 2,294,025
Health & Higher Educational Facilities Authority Revenue Bonds
Frederick Memorial Hospital Series 1993 (FGIC Insured) 5.00 2028 4,750,000 3,996,603
Health & Higher Educational Facilities Authority Revenue Bonds
Peninsula Regional Medical Center (MBIA Insured) 5.00 2023 2,000,000 1,703,980
____________
Total 8,859,308
_____________________________________________________________________________________________________________________________
Massachusetts (4.5%)
Bay Transportation Authority Refunding Bonds Series B
(Secondary MBIA Insured) 5.50 2021 1,770,000 1,627,568
Boston Water & Sewer Commission Revenue Bonds General Subordinate Series A
(BIG Insured) 6.00 2008 2,500,000 2,544,250
Health & Educational Authority Revenue Bonds Valley Regional Health System
Series C (Connie Lee Insured) 5.75 2018 1,500,000 1,397,010
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Lahey Clinic Medical Center (MBIA Insured) 7.625 2018 2,200,000 2,446,004
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Northeastern University Series 1989C (AMBAC Insured) 7.10 2006 1,000,000 1,098,540
Industrial Finance Agency Revenue Bonds Brandeis University (MBIA Insured)6.80 2019 1,700,000 1,821,686
Municipal Wholesale Electric Power Supply System Refunding Revenue Bonds
Series B (MBIA Insured) 4.75 2011 5,250,000 4,610,392
Quincy Refunding Revenue Bonds Quincy Hospital Series 1993 (FSA Insured) 5.25 2016 2,235,000 2,021,379
State Health & Educational Facilities Authority Revenue Bonds
Cape Cod Health System Series A (Connie Lee Insured) 5.25 2021 4,000,000 3,544,600
State Water Resource Authority Revenue Bonds Series A (MBIA Insured) 5.50 2022 2,000,000 1,839,460
____________
Total 22,950,889
_____________________________________________________________________________________________________________________________
Michigan (2.3%)
Berkley School District County of Oakland School Building & Site
Unlimited Tax General Obligation Bonds Series 1995 (FGIC Insured) 5.625 2015 1,000,000 955,010
Chippewa Valley School District Macomb County Qualified School Building
Loan Fund Unlimited Tax General Obligation Refunding Bonds
(FGIC Insured) 5.00 2021 2,145,000 1,862,375
Detroit Water Supply System Refunding Revenue Bonds Series 1993
(FGIC Insured) 5.00 2023 1,050,000 900,837
Kalamazoo Hospital Finance Authority Refunding & Improvement Bonds
Bronson Methodist Hopsital (Secondary MBIA Insured) 6.25 2012 3,000,000 3,086,520
River Rouge School District (FSA Insured) 5.625 2022 2,400,000 2,262,168
Sandusky County School District Refunding Bonds (AMBAC Insured) 5.25 2021 1,000,000 900,830
<PAGE>
PAGE 26
State Hospital Finance Authority Refunding Bonds Oakwood Hospital Group
Series A (FGIC Insured) 5.625 2018 1,000,000 940,010
Wayne County Charter Airport Revenue Bonds AMT
Detroit Metropolitan Wayne County Airport (FGIC Insured) 8.00 2014 675,000 718,760
____________
Total 11,626,510
_____________________________________________________________________________________________________________________________
Minnesota (1.7%)
Southern Minnesota Municipal Power Agency Power Revenue Bonds
Series A (Secondary FGIC Insured) 4.75 2016 4,250,000 3,645,863
Western Municipal Power Agency Transmission Pre-Refunded Revenue
Bonds Series 1991 (AMBAC Insured) 6.75 2016 4,500,000 4,841,910
____________
Total 8,487,773
_____________________________________________________________________________________________________________________________
Missouri (1.1%)
Kansas City School District Insured Leasehold Revenue Bonds
Capital Improvement (FGIC Insured) 5.00 2014 4,000,000 3,588,280
St. Louis Municipal Finance Leasehold Improvement Revenue Bonds
St. Louis Civil Courts Building Series 1994 (FGIC Insured) 5.75 2013 2,065,000 2,021,718
____________
Total 5,609,998
_____________________________________________________________________________________________________________________________
Montana (1.8%)
Forsyth Rosebud County Pollution Refunding Revenue Bonds AMT
Puget Sound Power & Light (AMBAC Insured) 7.25 2021 4,000,000 4,354,400
State Board of Investments Payroll Tax Bonds Worker's Compensation Program
Series 1991 (MBIA Insured) 6.875 2020 4,750,000 5,099,933
____________
Total 9,454,333
_____________________________________________________________________________________________________________________________
Nebraska (2.0%)
Public Power District Revenue Bonds Power Supply System (MBIA Insured) 5.75 2020 5,000,000 4,803,350
Public Power District Supply System Revenue Bonds Series 1995A
(MBIA Insured) 5.25 2022 6,115,000 5,562,693
_____________
Total 10,366,043
_____________________________________________________________________________________________________________________________
Nevada (1.0%)
Clark County Passenger Facility Charge Revenue Bonds AMT
Las Vegas McCarren Airport Series B (AMBAC Insured) 6.25 2022 5,000,000 4,919,850
_____________________________________________________________________________________________________________________________
New Hampshire (1.1%)
Industrial Development Authority Pollution Control Revenue Bonds AMT
Light & Power Series 1989 (AMBAC Insured) 7.375 2019 5,000,000 5,400,900
_____________________________________________________________________________________________________________________________
New Mexico (0.8%)
Rio Rancho Water & Wastewater System Revenue Bonds Series A
(FSA Insured) 5.90 2015 2,700,000 2,647,188
Santa Fe Water Revenue Bonds (AMBAC Insured) 6.30 2024 1,350,000 1,371,978
____________
Total 4,019,166
_____________________________________________________________________________________________________________________________
New York (5.9%)
Broome Certificate of Participation Public Safety Facility
Series 1994 (MBIA Insured) 5.25 2022 2,250,000 2,026,327
Dormitory Authority City University System Consolidated 3rd Resolution
Revenue Bonds 1994 Series 2 (MBIA Insured) 6.25 2019 2,500,000 2,527,375
<PAGE>
PAGE 27
Metropolitan Transportation Authority Commuter Facility Service
Contract Bonds Series L (AMBAC Insured) 7.50 2017 1,300,000 1,423,513
New York City General Obligation Pre-Refunded Bonds Series A
(FGIC Insured) 8.125 2007 1,145,000 1,263,805
State Energy Resource & Development Authority Gas Facility Revenue Bonds
AMT Brooklyn Union Gas (MBIA Insured) 5.60 2025 4,500,000 4,134,285
State Energy Resource & Development Authority Pollution Control
Refunding Revenue Bonds AMT Rochester Gas & Electric (MBIA Insured) 6.50 2032 4,000,000 4,061,480
State Energy Resource & Development Authority Revenue Bonds AMT
Consolidated Edison (Secondary AMBAC Insured) 6.75 2027 2,500,000 2,571,125
State Energy Resource & Development Authority Solid Waste Disposal
Revenue Bonds AMT New York State Electric & Gas Series A
(MBIA Insured) 5.70 2028 11,210,000 10,422,722
State Urban Development Correctional Facilities Pre-Refunded Revenue Bonds
Series 1 (FSA Insured) 7.50 2020 1,500,000 1,702,155
____________
Total 30,132,787
_____________________________________________________________________________________________________________________________
North Carolina (1.4%)
Charlotte Pre-Refunded Certificates of Participation Convention Facility
Series 1991 (AMBAC Insured) 6.75 2021 3,150,000 3,564,005
Charlotte Convention Facility Refunding Certificate of Participation
Series 1993C (AMBAC Insured) 5.25 2020 3,100,000 2,794,774
Fayetteville Public Work Commission Revenue Bonds Series 1995A
(AMBAC Insured) 5.375 2020 650,000 597,194
____________
Total 6,955,973
_____________________________________________________________________________________________________________________________
Ohio (2.7%)
Adams County Valley School District County of Adams & Highland
School Improvement Unlimited Tax General Obligation Bonds
Series 1995 (MBIA Insured) 5.25 2021 2,500,000 2,277,500
Clermont County Sewer System Refunding Bonds (AMBAC Insured) 5.20 2021 4,000,000 3,617,440
Cleveland Airport System Revenue Bonds AMT Series A (FGIC Insured) 6.00 2024 1,650,000 1,608,255
Cleveland City School District Unlimited Tax General Obligation Bonds
Series A (FGIC Insured) 5.875 2011 2,325,000 2,325,697
Lorain County Hospital Facilities Refunding Revenue Bonds Series 1995
EMH Regional Medical Center (AMBAC Insured) 5.375 2021 1,000,000 911,540
Lucas County Hospital Refunding Revenue Bonds St. Vincent Medical Center
Series 1993C (MBIA Insured) 5.25 2022 1,725,000 1,539,942
Municipal Electric Generation Agency Joint Venture 5
Revenue Bonds (AMBAC Insured) 5.375 2024 1,480,000 1,348,443
____________
Total 13,628,817
_____________________________________________________________________________________________________________________________
Oklahoma (0.9%)
Moore Public Works Authority Refunding Revenue Bonds Series 1989
(AMBAC Insured) 7.60 2006 2,700,000 3,002,481
Tulsa International Airport General Revenue Bonds Consolidated Fixed Rate
Series 1989 (MBIA Insured) 7.50 2008 1,500,000 1,609,665
____________
Total 4,612,146
_____________________________________________________________________________________________________________________________
Pennsylvania (3.7%)
Allegheny County Airport Revenue Bonds Pittsburgh International
Series D (FGIC Insured) 7.75 2019 2,300,000 2,464,542
Delaware County Authority Health Care Revenue Bonds
Mercy Health Southeastern (Connie Lee Insured) 5.125 2012 2,000,000 1,810,600<PAGE>
PAGE 28
Pittsburgh Water & Sewer Authority Water & Sewer System
Pre-Refunded Revenue Bonds Series 1991A (FGIC Insured) 6.50 2014 10,000,000 11,097,900
Robinson Township Municipal Authority Water & Sewer Revenue Bonds
(FGIC Insured) 6.00 2019 2,200,000 2,185,876
Turnpike Commission Pre-Refunded Revenue Bonds Series 1989K (MBIA Insured)7.50 2012 1,000,000 1,136,260
____________
Total 18,695,178
_____________________________________________________________________________________________________________________________
South Carolina (0.2%)
Piedmont Municipal Power Agency Electric Refunding Revenue Bonds
(FGIC Insured) 6.25 2021 1,000,000 1,031,100
_____________________________________________________________________________________________________________________________
Tennessee (0.7%)
Knox County Health Education & Housing Facility Board Hospital Refunding
Revenue Bonds Fort Sanders Alliance Obligation Group Series 1993
(MBIA Insured) 5.75 2014 3,750,000 3,697,500
_____________________________________________________________________________________________________________________________
Texas (17.6%)
Austin Combine Utility System Revenue Bonds (MBIA Insured) 5.25 2018 2,300,000 2,091,965
Austin Combine Utility System Revenue Bonds Series 1987 (BIG Insured) 8.625 2012-17 1,250,000 1,524,600
Austin Combined Utilities System Refunding Revenue Bonds Series 1994
(FGIC Insured) 5.75 2024 8,500,000 8,086,560
Bexar County Health Facility Development Hospital Revenue Bonds San Antonio
Baptist Memorial Hospital System Series 1994 (MBIA Insured) 6.75 2019 5,000,000 5,292,400
Brazos River Authority Collateralized Pollution Control
Refunding Revenue Bonds Texas Utility Electric Series 1992C
(FGIC Insured) 6.70 2022 14,935,000 15,570,484
Colorado River Municipal Water District Water System
Pre-Refunded Revenue Bonds Series A (AMBAC Insured) 6.625 2021 8,900,000 9,717,732
Fort Bend County Levy Improvement District #11 Refunding Bonds
Series 1995 (MBIA Insured) 5.875 2013 1,210,000 1,201,348
Harris County Health Facilities Development Hospital Revenue Bonds
State Children's Hospital Series 1989A (MBIA Insured) 7.00 2019 1,500,000 1,612,125
Harris County Public Facilities Corporation Detention Facility Mortgage
Pre-Refunded Revenue Bonds (MBIA Insured) 7.80 2011 1,000,000 1,130,310
Harris County Toll Road Senior Lien Pre-Refunded Revenue Bonds
Series A (AMBAC Insured) 6.50 2017 8,170,000 9,105,220
League City General Obligation Refunding & Improvement Bonds Series 1990
(FGIC Insured) 6.25 2013 2,500,000 2,549,750
Matagorda County Navigation District #1 Collateralized Pollution Control
Revenue Bonds Central Power & Light Series 1984A (AMBAC Insured) 7.50 2014 2,500,000 2,808,300
Matagorda County Navigation District #1 Pollution Control
Refunding Revenue Bonds Houston Light & Power Series E (FGIC Insured) 7.20 2018 2,150,000 2,369,128
Matagorda County Navigation District #1 Pollution Control Revenue Bonds
AMT Central Power & Light Series 1990 (AMBAC Insured) 7.50 2020 2,000,000 2,192,780
Municipal Power Agency Refunding Revenue Bonds Series 1991A
(AMBAC Insured) 6.75 2012 5,250,000 5,715,990
North Central State Health Facilities Pre-Refunded Bonds
Children's Medical Center (BIG Insured) 7.875 2018 2,000,000 2,179,580
San Antonio Water Refunding Revenue Bonds (MBIA Insured) 5.50 2018 5,000,000 4,684,750
Tarrant County Health Facility Development Hospital Revenue Bonds
Adventist Health System/Sunbelt Series 1993
(CGIC Insured) 5.00 2013 1,250,000 1,105,525
Turnpike Authority Dallas North Tollway Pre-Refunded Revenue Bonds
Series 1990 (AMBAC Insured) 6.00 2020 5,000,000 5,243,800<PAGE>
PAGE 29
Turnpike Authority Dallas North Tollway Revenue Bonds Addison Airport
Toll Tunnel Series 1994 (FGIC Insured) 6.60 2023 2,000,000 2,095,280
University of Houston System Consolidated Pre-Refunded Revenue Bonds
Series 1990A (MBIA Insured) 7.40 2006 3,160,000 3,519,008
____________
Total 89,796,635
_____________________________________________________________________________________________________________________________
Utah (0.4%)
Intermountain Power Authority Power Supply Pre-Refunded Revenue Bonds
Series 1987C (AMBAC Insured) 8.375 2012 900,000 989,388
Salt Lake City-County Airport Pre-Refunded Revenue Bonds AMT Series 1989
(FGIC Insured) 7.875 2018 1,000,000 1,103,560
____________
Total 2,092,948
_____________________________________________________________________________________________________________________________
Virginia (4.2%)
Hanover County Industrial Development Authority
Memorial Regional Medical Center (MBIA Insured) 5.50 2025 3,500,000 (g) 3,207,295
Industrial Development Authority Chesapeake Public Facility Lease
Revenue Bonds Chesapeake Jail Series 1994 (MBIA Insured) 5.625 2014 855,000 821,766
Loudoun County Sanitation Authority Waste & Sewer
Refunding Revenue Bonds (MBIA Insured) 5.25 2030 1,435,000 1,267,607
Norfolk Water Revenue Bonds (AMBAC Insured) 5.375 2023 3,905,000 3,564,172
Portsmouth Redevelopment Housing Authority Multi-Family Housing
Refunding Revenue Bonds (FNMA Insured) 6.05 2008 5,780,000 5,875,601
Richmond Metropolitan Authority Expressway Refunding Bonds
Series A (FGIC Insured) 5.75 2022 3,890,000 3,715,495
Roanoke Industrial Development Authority Refunding Revenue Bonds
Memorial Hospital Series A (MBIA Insured) 5.00 2024 3,750,000 3,205,612
____________
Total 21,657,548
_____________________________________________________________________________________________________________________________
Washington (1.8%)
Public Power Supply System Nuclear Project #1 Pre-Refunded Revenue Bonds
Series A (MBIA Insured) 7.50 2015 1,805,000 2,032,936
Public Power Supply System Nuclear Project #1 Refunding Revenue Bonds
Series A (MBIA Insured) 7.50 2015 1,195,000 1,302,251
Public Power Supply System Pre-Refunded Revenue Bonds Nuclear Project #3
Series 1989A (BIG Insured) 7.25 2016 1,000,000 1,117,220
Public Power Supply System Refunding Revenue Bonds Nuclear Project #3
Series 1989A (BIG Insured) 6.00 2018 3,000,000 2,992,530
Spokane Regional Solid Waste Management System Revenue Bonds AMT
Series 1989 (AMBAC Insured) 7.75 2011 300,000 332,703
Spokane Regional Solid Waste Management System Revenue Bonds AMT
Series 1989 (AMBAC Insured) 7.875 2007 1,250,000 1,390,600
____________
Total 9,168,240
_____________________________________________________________________________________________________________________________
West Virginia (2.7%)
Board of Regents Registration Fee Pre-Refunded Revenue Bonds Series 1989B
(MBIA Insured) 7.40 2009 2,000,000 2,233,340
School Building Authority Capital Improvement Pre-Refunded Revenue Bonds
(MBIA Insured) 7.25 2015 3,415,000 3,863,150
<PAGE>
PAGE 30
School Building Authority Capital Improvement Revenue Bonds Series 1990B
(MBIA Insured) 6.75 2017 5,000,000 5,296,700
State Parkway Economic Development & Tourism Authority Parkway
Pre-Refunded Revenue Bonds Series 1989 (FGIC Insured) 7.125 2019 2,000,000 2,225,360
____________
Total 13,618,550
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $474,525,646) $499,543,524
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (2.2%)
_____________________________________________________________________________________________________________________________
Issuer (h,i) Effective Amount Value(a)
yield payable at
maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Municipal notes
Gulf Coast Amoco V.R.D.B.
10-12-17 4.10% $3,000,000 $ 3,000,000
New York City General Obligation V.R.D.B. Series B-6
08-15-05 4.00 1,800,000 1,800,000
New York City General Obligation V.R.D.B. Series B-4
08-15-23 4.25 2,000,000 2,000,000
New York City Municipal Water Finance Authority V.R.D.B. Series 1994C
06-15-23 4.25 100,000 100,000
New York City Municipal Water Finance Authority Water & Sewer System
Revenue V.R.D.B. Series A
06-15-25 4.50 4,100,000 4,100,000
Regents of the University of Michigan Hospital Refunding Revenue V.R.D.B.
Series 1992A
12-01-19 4.20 500,000 500,000
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $11,500,000) $ 11,500,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $486,025,646)(i) $511,043,524
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE><CAPTION>
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 06-30-95 06-30-94
___________________________________________________________________________________________________________
<S> <C> <C>
AAA 100% 100%
AA - -
A - -
BBB - -
Non-rated - -
Total 100% 100%<PAGE>
PAGE 31
(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
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
(d) The following abbreviation is used in the portfolio descriptions:
AMT -- Alternative Mininum Tax
(e) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on
the date of acquisition.
(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 June 30, 1995. Inverse floaters in the aggregate
represent 1.8% of the fund's net assets as of June 30, 1995.
(g) At June 30, 1995, the cost of securities purchased, including interest purchased, on a when-issued
basis was $9,086,501.
(h) The following abbreviation is used in the portfolio descriptions:
V.R.D.B. -- Variable Rate Demand Bond
(i) At June 30, 1995, the cost of securities for federal income tax purposes was $485,908,978
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $29,479,738
Unrealized depreciation (4,345,192)
______________________________________________________________________________________________________
Net unrealized appreciation $25,134,546
______________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 32
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
<PAGE>
PAGE 33
IDS Selective Fund
Invests in high-quality corporate bonds and other highly rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to the
timely payment of principal and interest by the U.S. government,
its agencies and instrumentalities. Seeks a high level of current
income and safety of principal consistent with its type of
investments.
(icon of) federal building
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes. Lower-quality securities generally involve greater risk of
principal and income.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% in the four highest rated, lowest risk
bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the fund but does not guarantee
the market value of the fund's shares.
(icon of) shield with eagle head
<PAGE>
PAGE 34
Growth and income investments
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The fund may invest up to 20% of
its assets in the U.S. market.
(icon of) three flags
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed-income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests in common 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 35
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 36
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) prism
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 37
Federal income tax information
IDS Insured Tax-Exempt Fund
_____________________________________________________
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. Some
of the dividends listed below were reported to you on
your year-end statement, last January. Dividends paid
to you since the end of last year will be reported to
you on a tax statement sent next January.
IDS Insured Tax-Exempt Fund
Fiscal year ended June 30, 1995
Class A
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
July 26, 1994 $0.02370
Aug. 26, 1994 0.02530
Sept. 26, 1994 0.02602
Oct. 26, 1994 0.02448
Nov. 28, 1994 0.02784
Dec. 28, 1994 0.02447
Jan. 25, 1995 0.02324
Feb. 23, 1995 0.02628
March 27, 1995 0.02702
April 26, 1995 0.02479
May 25, 1995 0.02249
June 26, 1995 0.02563
Total
distributions $0.30126
Class B
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
March 27, 1995 $0.02652
April 26, 1995 0.02166
May 25, 1995 0.01930
June 26, 1995 0.02208
Total
distributions $0.08956
<PAGE>
PAGE 38
Class Y
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
April 26, 1995 $0.03344
May 25, 1995 0.02329
June 26, 1995 0.02638
Total
distributions $0.08311
Source of distributions
Distributions during the fiscal year ended
June 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 municipal securities earned
by the fund from various states during the fiscal year
ended June 30, 1995 are listed below.
Alabama 0.671%
Alaska 0.003
Arizona 0.661
California 9.542
Colorado 1.018
Delaware 1.237
Florida 2.760
Georgia 2.200
Illinois 3.862
Indiana 3.026
Kansas 0.995
Kentucky 0.176
Louisiana 1.785
Maine 0.193
Maryland 1.650
Massachusetts 3.509
Michigan 1.792
Minnesota 1.530
Mississippi 0.046
Missouri 1.159<PAGE>
PAGE 39
Montana 2.154
Nebraska 0.721
Nevada 1.985
New Hampshire 1.931
New Jersey 0.834
New Mexico 1.136
New York 4.959
North Carolina 2.194
North Dakota 0.026
Ohio 1.661
Oklahoma 0.989
Pennsylvania 5.292
South Carolina 0.141
Tennessee 1.158
Texas 19.162
Utah 0.669
Virginia 3.129
Washington 6.016
Washington, DC 4.236
West Virginia 2.876
Wyoming 0.916
<PAGE>
PAGE 40
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
Your IDS financial advisor:
IDS INSURED TAX-EXEMPT FUND
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 41
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 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.
