PAGE
IDS State
Tax-Exempt
Funds
1994 semiannual report
(icon of) shield with U.S. enclosed
Tax-exempt
funds from the
following states:
California
Massachusetts
Michigan
Minnesota
New York
Ohio
Distributed by
American Express
Financial Advisors Inc.
<PAGE>
PAGE
(icon of) shield with U.S. enclosed
Twice the tax relief
Many people who want to reduce their tax burden favor
municipal bonds because the interest they pay is
generally free from federal tax. If you want to
eliminate state tax, too, you can invest in municipal
bonds in the state you reside. This double tax-
exemption makes this one of the best tax-advantaged
investments still available to individuals. What's
more, the money you invest is typically used by
municipalities to fund projects such as schools and
highways. So, with this investment, the benefits reach
well beyond your pocketbook.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 5
Financial statements 11
Notes to financial statements 18
Investments in securities 31
Directors and officers 60
IDS mutual funds 61
<PAGE>
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To our shareholders
William R. Pearce
President of the fund
Paul B. Hylle
Portfolio manager
From the president
All of the funds in the ids mutual fund group held
shareholder meetings on Nov. 9, 1994. The meetings,
which were well-attended, approved all of the proposals
advanced by management. Among the proposals were:
The election of trustees and the selection of KPMG
Peat Marwick LLP as independent auditors for each of
the funds in the group.
A new investment management
agreement that will become effective for each fund when
it begins offering multiple classes of shares, now
planned to occur in March, 1995.
A change in investment policy that will permit the
funds to adopt a master/feeder structure if and when
the board of each fund determines that it is in the
best interest of the shareholders.
And, finally, changes to the funds fundamental
investment policies that, among other things, allow the
board to modify them should it deem appropriate.
No other business was presented at the meeting, which
was concluded by a report to shareholders from the
American Express Financial Corporation Investment
Department.
Thanks to all of you for your effort in reviewing the
proxy material and voting your proxies.
William R. Pearce
From the portfolio manager
Continued increases in interest rates
provided the fuel for a volatile bond market throughout
the year, including the latest six-month period.
(Rising interest rates depress bond values, while
falling rates enhance them.) By some measures, this
resulted in one of the worst bond markets in the past
60 years. One of the hardest hit segments of the market
was municipal bonds, and this was evident by the
decline in the funds net asset values. The funds,
however, did provide shareholders with an ongoing
stream of tax-free income.
The severe market downturn began in earnest in February
1994, when the Federal Reserve began raising short-term
interest rates and continued that policy throughout the
year. By the end of November, the Fed had raised rates
six times.
Although economic data continued to show that inflation
was under control, professional bond investors viewed
the Feds actions as an indication that an increase in
the rate of inflation was imminent. In other words,
market psychology ruled the bond market much of the
period. And, because higher inflation erodes the value
of fixed-income investments such as bonds, investors
fears quickly led to mass bond- selling, driving down
prices and driving up long-term interest rates in the
process.
Strategy shifts enhance yield
The funds continue to be positioned in a more defensive
manner, with a majority of holdings being in higher-
quality securities. However, due to the attractive
prices now available, we have begun to look for
opportunities to add some lower-rated bonds to enhance
the funds yields. In light of the Orange County
problem, we will be especially selective in making
purchases for the California fund. Although this fund
has no exposure to the credit risk associated with
Orange County, its possible that the municipal market
as a whole could experience periodic volatility as news
unfolds in that and, perhaps, other isolated
localities.
Beyond those strategies, we look to lengthen maturities
of securities in these funds during periods of price
weakness as we believe that most of the market decline
is behind us. We plan to remain nearly fully invested
to maximize tax-free income. The addition of some
lower-rated securities notwithstanding, we will invest
the majority of assets in high- and medium-grade
municipal bonds to provide shareholders in the
respective states with income that is exempt from
federal and state taxation.
Market expected to improve
Although we expect the bond market to remain volatile
during the first half of the new year, we think the
environment should improve during the second half. We
expect that the interest rate increases imposed by the
Federal Reserve will result in a tempering of economic
growth, which should lessen the threat of higher
inflation. Furthermore, the supply of bonds is likely
to remain relatively small, which should help support
demand and, consequently, prices. But no matter what
the current year may bring, the benefit of investing in
tax-free securities is still in effect for taxpayers,
particularly those in higher brackets.
Paul B. Hylle
(Note: Certain income generated by these funds may be
subject to the alternative
minimum tax.)
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To our shareholders
California
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
Dec. 31, 1994 $ 4.95
____________________________
June 30, 1994 $ 5.13
____________________________
Decrease $(0.18)
____________________________
Distributions
____________________________
July 1, 1994 - Dec. 31, 1994
____________________________
From income $ 0.15
____________________________
From capital gains $ -
Total distributions $ 0.15
____________________________
Total return* (0.6%)
____________________________
Massachusetts
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
Dec. 31, 1994 $ 5.04
____________________________
June 30, 1994 $ 5.24
____________________________
Decrease $(0.20)
____________________________
Distributions
July 1, 1994 - Dec. 31, 1994
____________________________
From income $ 0.15
____________________________
From capital gains $ -
____________________________
Total distributions $ 0.15
____________________________
Total return* (0.9%)
Michigan
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
Dec. 31, 1994 $ 5.16
____________________________
June 30, 1994 $ 5.35
____________________________
Decrease $(0.19)
____________________________
Distributions
July 1, 1994 - Dec. 31, 1994
____________________________
From income $ 0.154
____________________________
From capital gains $ 0.002
____________________________
Total distributions $ 0.156
____________________________
Total return* (0.7%)
____________________________
Minnesota
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
Dec. 31, 1994 $ 4.99
____________________________
June 30, 1994 $ 5.16
____________________________
Decrease $(0.17)
____________________________
Distributions
July 1, 1994 - Dec. 31, 1994
____________________________
From income $ 0.15
____________________________
From capital gains $ -
____________________________
Total distributions $ 0.15
____________________________
Total return* (0.3%)
New York
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
Dec. 31, 1994 $ 4.94
____________________________
June 30, 1994 $ 5.12
____________________________
Decrease $(0.18)
____________________________
Distributions
July 1, 1994 - Dec. 31, 1994
____________________________
From income $ 0.15
____________________________
From capital gains $ -
____________________________
Total distributions $ 0.15
Total return* (0.5%)
Ohio
6-month performance
(All figures per share)
Net asset value (NAV)
____________________________
Dec. 31, 1994 $ 5.08
____________________________
June 30, 1994 $ 5.26
____________________________
Decrease $(0.18)
____________________________
Distributions
July 1, 1994 - Dec. 31, 1994
____________________________
From income $ 0.15
____________________________
From capital gains $ -
____________________________
Total distributions $ 0.15
____________________________
Total return* (0.5%)
*If you purchased shares in the funds during this
period, your return also would have been affected by
the sales charge, as described in the prospectus.<PAGE>
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<TABLE>
<CAPTION>
IDS California Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 25.51% of the fund's net assets
______________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Dec. 31, 1994)
_____________________________________________________________________________________
<S> <C> <C>
Long Beach Harbor Revenue Bonds AMT Series 1989A
7.25% 2019 3.05% $7,054,670
Northern California Public Power Authority
Refunding Revenue Bonds Geothermal #3 Series 1987A
7.00% 2007 3.02 6,975,833
Los Angeles Department of Water & Power Electric Plant
Revenue Bonds Series 1990
7.125% 2030 2.99 6,926,010
Sacramento Municipal Utility District Series R
6.00% 2015-2017 2.92 6,741,735
Riverside Electric Revenue Bonds Series 1991
6.00% 2015 2.57 5,939,230
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A
7.00% 2020 2.31 5,337,100
San Diego Regional Transportation Commission Sales Tax
Pre-Refunded Revenue Bonds Limited Tax Series 1989A
6.25% 2008 2.23 5,151,575
San Jose Redevelopment Agency Merged Area Redevelopment
Project
6.00% 2015 2.21 5,107,575
University of Southern California Educational Facilities
Authority Pre-Refunded Revenue Bonds Series 1989B
6.75% 2015 2.15 4,982,700
Los Angeles Wastewater System Refunding Revenue Bonds
Series A
5.70% 2020 2.06 4,772,460
</TABLE>
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<TABLE>
<CAPTION>
IDS Massachusetts Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 26.89% of the fund's net assets
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Dec. 31, 1994)
____________________________________________________________________________________
<S> <C> <C>
Boston City Hospital Refunding Revenue Bonds
Series B
5.75% 2023 3.83% $2,512,590
Health & Educational Facilities Authority
Revenue Bonds Suffolk University Series B
6.35% 2022 3.55 2,334,122
Health & Educational Facilities Authority Revenue Bonds
Boston College Series J
6.625% 2021 3.03 1,991,340
Chelsea General Obligation Bonds School Loan Act of 1948
Full Construction Program
6.00% 2014 2.85 1,869,500
Health & Educational Facilities Authority Revenue Bonds
Charlton Memorial Hospital Series 1991B
7.25% 2013 2.67 1,753,290
Industrial Finance Agency Resource Recovery Revenue Bonds
SEMASS Series 1991A
9.00% 2015 2.41 1,585,710
Municipal Wholesale Electric Power Supply System
Pre-Refunded Revenue Bonds Series 1992B
6.75% 2017 2.28 1,496,361
Bay Transportation Authority General Transportation System
Refunding Bonds Series 1992B
6.20% 2016 2.16 1,415,625
Boston General Obligation Refunding Bonds Series 1993A
5.65% 2009 2.09 1,374,345
Industrial Finance Agency Pollution Control
Refunding Revenue Bonds Eastern Edison Series 1993
5.875% 2008 2.02 1,328,250
</TABLE>
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<TABLE>
<CAPTION>
IDS Michigan Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart) The ten holdings listed here make up 25.21% of the fund's net assets
____________________________________________________________________________________
Percent Value
(of fund's net assets) (as of Dec. 31, 1994)
____________________________________________________________________________________
<S> <C> <C>
State Strategic Fund Limited Tax Obligation
Refunding Revenue Bonds Detroit Edison
Series 1992BB
6.50% 2016 3.23% $2,474,250
Grand Rapids Water Supply System
Refunding Revenue Bonds Series 1991
5.75% 2018 2.90 2,226,050
State Trunk Line Refunded Revenue Bonds Series B-1
5.50% 2021 2.73 2,093,600
State Building Authority Refunding Revenue Bonds
Series 1991I
6.25% 2020 2.66 2,041,006
State Hospital Finance Authority Hospital
Pre-Refunded Revenue Bonds McLaren Obligated Group
Series 1991A
7.50% 2021 2.53 1,941,082
Monroe County Pollution Control Revenue Bonds AMT
Detroit Edison Fermi 2 Plants Series CC
7.50% 2019 2.37 1,817,375
Battle Creek Water Supply System
Pre-Refunded Revenue Bonds Series 1990B
6.375% 2008-2010 2.23 1,713,210
State Strategic Fund Limited Tax Obligation
Refunding Revenue Bonds Ford Motor Series 1991A
7.10% 2006 2.23 1,707,436
Caledonia Community School Unlimited Tax
General Obligation Refunding Revenue Bonds
5.50% 2022 2.21 1,696,300
Buena Vista School District Saginaw County
School Building & Site Unlimited Tax
General Obligation Pre-Refunded Bonds Series 1991
7.20% 2016 2.12 1,627,350
/TABLE
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<TABLE>
<CAPTION>
IDS Minnesota Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 21.36% of the fund's net assets
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Dec. 31, 1994)
____________________________________________________________________________________
<S> <C> <C>
St. Paul & Minneapolis Housing & Redevelopment Authority
Health Care Facility Revenue Bonds Group Health Plan
Series 1992 2.73% $10,193,925
6.75% 2013
State Public Facilities Authority Water Pollution
Control Revenue Bonds Series 1992A
6.50% 2014 2.41 9,019,411
State General Obligation Various Purpose Pre-Refunded Bonds
Series 1991
6.70% 2011 2.25 8,424,560
State General Obligation Various Purpose Pre-Refunded Bonds
Series 1990
7.00% 2009 2.24 8,354,677
Anoka County General Obligation Capital Improvement
Revenue Bonds Series 1989B
7.00% 2007-2010 2.23 8,318,244
Western Minnesota Municipal Power Agency Supply
Refunding Revenue Bonds Series 1987A
7.00% 2013 1.97 7,355,407
Hennepin County Lease Revenue Certificate
of Participation Series 1991
6.80% 2017 1.96 7,340,190
St. Paul Sewer Refunding Revenue Bonds Series 1993
5.60% 2008 1.94 7,259,252
Edina Multi-family Housing Revenue Bonds Walker Assisted
Living Series 1991
9.00% 2031 1.89 7,065,351
State Public Facilities Authority Water Pollution Control
Revenue Bonds Series 1989A
7.00% 2009 1.74 6,512,000
/TABLE
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<TABLE>
<CAPTION>
IDS New York Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 34.58% of the fund's net assets
______________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Dec. 31, 1994)
_____________________________________________________________________________________
<S> <C> <C>
State Energy Research & Development Authority
Electric Facility Revenue Bonds AMT Consolidated Edison
Series 1990A
7.50% 2025 4.46% $ 5,061,250
State Urban Development Correction Facility
Pre-Refunded Revenue Bonds Series 1
7.50% 2020 4.36 4,942,170
State Local Government Assistance Pre-Refunded Bonds
Series 1991A
7.00% 2016 3.82 4,334,760
State Mortgage Agency Homeowner Mortgage Revenue Bonds
Series TT
7.50% 2015 3.65 4,143,280
United Nations Development Senior Lien
Refunding Revenue Bonds Series 1992A
6.00% 2026 3.47 3,940,920
State Dormitory Authority City University System
Pre-Refunded Revenue Bonds
8.125% 2017 3.25 3,689,306
New York City Water Finance Authority Water & Sewer System
Revenue Bonds Series 1993A
5.75% 2018 3.13 3,544,920
Triborough Bridge & Tunnel Authority General Purpose
Pre-Refunded Revenue Bonds Series S
7.00% 2021 2.84 3,226,380
Battery Park City Authority Senior Refunding Revenue Bonds
Series 1993A
5.25% 2017 2.81 3,192,000
State Environmental Facility State Water & Pollution Control
Revolving Fund Revenue Bonds New York City Municipal Water
Finance Authority Series 1990A
7.50% 2012 2.79 3,162,240
</TABLE>
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<TABLE>
<CAPTION>
IDS Ohio Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart) The ten holdings listed here make up 23.87% of the fund's net assets
_____________________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of Dec. 31, 1994)
____________________________________________________________________________________
<S> <C> <C>
Lakota Local School District Unlimited Tax Improvement
General Obligation Bonds
6.25% 2014 2.84% $ 1,955,360
State Air Quality Development Authority
Refunding Revenue Bonds AMT Series 1994
6.375% 2029 2.74 1,887,860
Erie County Hospital Improvement Refunding Revenue Bonds
Firelands Community Hospital Series 1992
6.75% 2015 2.73 1,879,240
Butler County Hospital Facility Improvement
Refunding Revenue Bonds
7.50% 2010 2.45 1,687,595
Lucas County Hospital Refunding Revenue Bonds
St. Vincent's Medical Center Series B
5.25% 2020 2.38 1,638,580
Franklin County Convention Facilities Authority
Tax & Lease Revenue Anticipation Pre-Refunded Bonds
7.00% 2019 2.36 1,622,910
State Turnpike Revenue Bonds Series A
5.75% 2024 2.23 1,536,080
State Housing Finance Agency Mortgage Revenue Bonds
AMT Aristocrat South Board & Care Series 1991A
7.30% 2031 2.20 1,512,165
Cleveland Airport Systems Revenue Bonds AMT Series A
6.00% 2024 1.98 1,364,685
Cuyahoga County Hospital Refunding Revenue Bonds
Cleveland Clinic Foundation Series 1992
5.50% 2011 1.96 1,347,525
</TABLE>
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<TABLE>
<CAPTION>
Financial statements
Statements of assets and liabilities
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Dec. 31, 1994
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
California Massachusetts Michigan
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
(Unaudited) (Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Investments in securities, at value (Note 1)
(identified cost $226,241,022, $64,891,403 and
$73,604,255) $228,034,493 $63,663,446 $73,714,460
Cash in bank on demand deposit 12,740 613,041 2,730,756
Accrued interest receivable 4,804,924 1,557,079 1,270,367
Receivable for investment securities sold 21,875 5,188 5,250
_____________________________________________________________________________________________________________________________
Total assets 232,874,032 65,838,754 77,720,833
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Dividends payable to shareholders 429,535 84,156 24,020
Payable for investment securities purchased 981,370 -- 942,317
Accrued investment management and services fee 99,297 28,107 31,401
Accrued distribution fee 3,215 1,501 1,381
Accrued transfer agency fee 8,114 3,801 3,534
Other accrued expenses 70,822 30,059 25,177
_____________________________________________________________________________________________________________________________
Total liabilities 1,592,353 147,624 1,027,830
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares $231,281,679 $65,691,130 $76,693,003
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Shares of beneficial interest - $.01 par value, unlimited
number of shares authorized; outstanding 46,744,339; 13,028,192
and 14,857,463 shares $ 467,443 $ 130,282 $ 148,575
Additional paid-in capital 232,102,156 67,003,640 76,266,075
Accumulated net realized gain (loss) (Notes 1 and 7) (3,444,354) (312,724) 68,884
Unrealized appreciation (depreciation) (Note 5) 2,156,434 (1,130,068) 209,469
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding shares $231,281,679 $65,691,130 $76,693,003
_____________________________________________________________________________________________________________________________
Net asset value per share $ 4.95 $ 5.04 $ 5.16
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
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Financial statements
Statements of assets and liabilities
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Dec. 31, 1994
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
Minnesota New York Ohio
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
(Unaudited) (Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
Investments in securities, at value (Note 1)
(identified cost $370,458,586, $109,313,325
and $67,632,022) $367,298,692 $110,422,200 $66,747,987
Cash in bank on demand deposit -- 768,849 1,080,032
Accrued interest receivable 8,767,837 2,387,466 1,023,329
Receivable for investment securities sold 368,750 14,063 5,188
_____________________________________________________________________________________________________________________________
Total assets 376,435,279 113,592,578 68,856,536
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 2,162,803 -- --
Dividends payable to shareholders 123,839 36,627 21,903
Accrued investment management and services fee 163,354 48,423 29,333
Accrued distribution fee 7,730 2,336 1,323
Accrued transfer agency fee 19,590 5,947 3,362
Other accrued expenses 260,330 40,622 24,194
_____________________________________________________________________________________________________________________________
Total liabilities 2,737,646 133,955 80,115
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares $373,697,633 $113,458,623 $68,776,421
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Shares of beneficial interest - $.01 par value, unlimited
number of shares authorized; outstanding 74,855,838; 22,978,473
and 13,540,588 shares $ 748,558 $ 229,785 $ 135,406
Additional paid-in capital 381,558,224 113,492,683 69,747,411
Accumulated net realized loss (Notes 1 and 7) (6,196,783) (1,608,405) (320,250)
Unrealized appreciation (depreciation) (Note 5) (2,412,366) 1,344,560 (786,146)
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding shares $373,697,633 $113,458,623 $68,776,421
_____________________________________________________________________________________________________________________________
Net asset value per share $ 4.99 $ 4.94 $ 5.08
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
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Financial statements
Statements of operations
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Six months ended Dec. 31, 1994
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
California Massachusetts Michigan
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
(Unaudited) (Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
Income:
Interest $8,159,010 $2,256,616 $2,427,005
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 645,698 181,449 196,929
Distribution fee 20,260 9,481 8,515
Transfer agency fee 51,277 24,206 21,753
Compensation of trustees 4,184 4,107 3,209
Compensation of officers 1,524 439 236
Postage 11,006 3,298 2,842
Registration fees 5,941 1,953 940
Reports to shareholders 6,713 1,703 1,624
Audit fees 7,375 6,500 6,500
Administrative 2,664 1,427 1,212
Other 775 1,938 995
_____________________________________________________________________________________________________________________________
Total expenses 757,417 236,501 244,755
_____________________________________________________________________________________________________________________________
Investment income -- net 7,401,593 2,020,115 2,182,250
_____________________________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________________________
Net realized gain (loss) on security transactions (Note 3) 810,520 (4,450) 397,970
Net realized loss on closed interest rate futures contracts (1,296,613) (62,823) (62,823)
Net realized gain on exercised or expired option contracts written (Note 6) 294,020 58,611 58,611
_____________________________________________________________________________________________________________________________
Net realized gain (loss) on investments (192,073) (8,662) 393,758
Net change in unrealized appreciation or depreciation (8,997,689) (2,711,084) (3,103,085)
_____________________________________________________________________________________________________________________________
Net loss on investments (9,189,762) (2,719,746) (2,709,327)
_____________________________________________________________________________________________________________________________
Net decrease in net assets resulting from operations $(1,788,169) $ (699,631) $ (527,077)
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
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Financial statements
Statements of operations
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Six months ended Dec. 31, 1994
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
Minnesota New York Ohio
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
(Unaudited) (Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
Income:
Interest $13,427,126 $3,883,051 $2,275,088
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 1,043,298 306,852 185,087
Distribution fee 48,462 14,583 8,197
Transfer agency fee 123,738 37,298 20,996
Compensation of trustees 13,465 3,779 2,455
Compensation of officers 1,665 613 400
Custodian fees 110 -- --
Postage 41,965 5,777 2,547
Registration fees 29,995 2,194 1,217
Reports to shareholders 44,398 2,212 1,421
Audit fees 7,750 7,125 6,500
Administrative 3,093 1,206 657
Other 8,920 2,277 2,335
_____________________________________________________________________________________________________________________________
Total expenses 1,366,859 383,916 231,812
_____________________________________________________________________________________________________________________________
Investment income -- net 12,060,267 3,499,135 2,043,276
_____________________________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________________________
Net realized gain (loss) on security transactions (Note 3) (2,616,945) 45,533 (11,687)
Net realized loss on closed interest rate futures contracts (2,124,681) (633,831) (62,823)
Net realized gain on exercised or expired option contracts written (Note 6) 723,957 179,961 58,611
______________________________________________________________________________________________________________________________
Net realized loss on investments (4,017,669) (408,337) (15,899)
Net change in unrealized appreciation or depreciation (9,537,153) (3,796,548) (2,483,813)
_____________________________________________________________________________________________________________________________
Net loss on investments (13,554,822) (4,204,885) (2,499,712)
_____________________________________________________________________________________________________________________________
Net decrease in net assets resulting from operations $(1,494,555) $ (705,750) $ (456,436)
_____________________________________________________________________________________________________________________________
</TABLE>
See accompanying notes to financial statements.
<PAGE>
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<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
_____________________________________________________________________________________________________________________________
Operations and distributions
_____________________________________________________________________________________________________________________________
California Tax-Exempt Fund Massachusetts Tax-Exempt Fund
_____________________________________________________________________________________________________________________________
Six months ended Year ended Six months ended Year ended
12/31/94 6/30/94 12/31/94 6/30/94
(Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Investment income -- net $ 7,401,593 $ 15,236,634 $ 2,020,115 $ 3,862,026
Net realized loss on investments (192,073) (2,375,504) (8,662) (29,934)
Net change in unrealized appreciation or depreciation (8,997,689) (11,906,345) (2,711,084) (3,499,662)
_____________________________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting
from operations (1,788,169) 954,785 (699,631) 332,430
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (7,401,630) (15,235,348) (2,020,115) (3,862,035)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales (Note 2) 9,800,491 35,683,408 5,228,979 22,403,265
Reinvestment of distributions 5,157,785 10,573,864 1,578,221 3,055,527
Payments for redemptions (29,683,554) (37,967,003) (10,444,906) (14,032,861)
_____________________________________________________________________________________________________________________________
Increase (decrease) in net assets from
share transactions (14,725,278) 8,290,269 (3,637,706) 11,425,931
_____________________________________________________________________________________________________________________________
Total increase (decrease) in net assets (23,915,077) (5,990,294) (6,357,452) 7,896,326
Net assets at beginning of period 255,196,756 261,187,050 72,048,582 64,152,256
_____________________________________________________________________________________________________________________________
Net assets at end of period $231,281,679 $255,196,756 $65,691,130 $72,048,582
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of changes in net assets
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series
_____________________________________________________________________________________________________________________________
Operations and distributions
______________________________________________________________________________________________________________________________
Michigan Tax-Exempt Fund Minnesota Tax-Exempt Fund
______________________________________________________________________________________________________________________________
Six months ended Year ended Six months ended Year ended
12/31/94 6/30/94 12/31/94 6/30/94
(Unaudited) (Unaudited)
______________________________________________________________________________________________________________________________
Investment income -- net $ 2,182,250 $ 4,171,457 $ 12,060,267 $ 24,205,532
Net realized gain (loss) on investments 393,758 (72,444) (4,017,669) (351,284)
Net change in unrealized appreciation or depreciation (3,103,085) (3,496,616) (9,537,153) (22,689,828)
_____________________________________________________________________________________________________________________________
Net increase (decrease) in net assets
resulting from operations (527,077) 602,397 (1,494,555) 1,164,420
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (2,182,176) (4,171,489) (12,060,310) (24,204,281)
Net realized gain (36,289) (68,841) -- --
_____________________________________________________________________________________________________________________________
Total distributions (2,218,465) (4,240,330) (12,060,310) (24,204,281)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales (Note 2) 8,581,243 15,113,866 24,303,818 81,250,235
Reinvestment of distributions 1,661,930 3,148,115 9,632,645 19,448,232
Payments for redemptions (7,487,442) (9,715,456) (55,074,596) (70,952,363)
_____________________________________________________________________________________________________________________________
Increase (decrease) in net assets from
share transactions 2,755,731 8,546,525 (21,138,133) 29,746,104
______________________________________________________________________________________________________________________________
Total increase (decrease) in net assets 10,189 4,908,592 (34,692,998) 6,706,243
Net assets at beginning of period 76,682,814 71,774,222 408,390,631 401,684,388
_____________________________________________________________________________________________________________________________
Net assets at end of period $76,693,003 $76,682,814 $373,697,633 $408,390,631
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of changes in net assets
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
_____________________________________________________________________________________________________________________________
Operations and distributions
_____________________________________________________________________________________________________________________________
New York Tax-Exempt Fund Ohio Tax-Exempt Fund
_____________________________________________________________________________________________________________________________
Six months ended Year ended Six months ended Year ended
12/31/94 6/30/94 12/31/94 6/30/94
(Unaudited) (Unaudited)
______________________________________________________________________________________________________________________________
Investment income -- net $ 3,499,135 $ 6,895,342 $ 2,043,276 $ 3,927,846
Net realized loss on investments (408,337) (505,058) (15,899) (177,991)
Net change in unrealized appreciation or depreciation (3,796,548) (6,437,361) (2,483,813) (4,272,974)
_____________________________________________________________________________________________________________________________
Net decrease in net assets
resulting from operations (705,750) (47,077) (456,436) (523,119)
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (3,499,135) (6,894,339) (2,043,288) (3,927,883)
Net realized gain -- -- -- (786)
_____________________________________________________________________________________________________________________________
Total distributions (3,499,135) (6,894,339) (2,043,288) (3,928,669)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales (Note 2) 6,999,349 21,355,340 6,805,529 17,974,999
Reinvestment of distributions 2,715,805 5,365,427 1,600,824 3,100,875
Payments for redemptions (12,210,278) (16,789,123) (8,965,143) (9,646,507)
_____________________________________________________________________________________________________________________________
Increase (decrease) in net assets from
share transactions (2,495,124) 9,931,644 (558,790) 11,429,367
_____________________________________________________________________________________________________________________________
Total increase (decrease) in net assets (6,700,009) 2,990,228 (3,058,514) 6,977,579
Net assets at beginning of period 120,158,632 117,168,404 71,834,935 64,857,356
_____________________________________________________________________________________________________________________________
Net assets at end of period $113,458,623 $120,158,632 $68,776,421 $71,834,935
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE
Notes to financial statements
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
(Unaudited as to Dec. 31, 1994)
__________________________________________________________________________
1. Summary of significant accounting policies
IDS California Tax-Exempt Trust and IDS Special
Tax-Exempt Series Trust were organized as
Massachusetts business trusts. IDS California
Tax-Exempt Trust includes only IDS California
Tax-Exempt Fund. IDS Special Tax-Exempt Series
Trust is a "series fund" that is currently
composed of individual state tax-exempt funds and
one insured national tax-exempt fund, including
IDS Massachusetts Tax-Exempt Fund, IDS Michigan
Tax-Exempt Fund, IDS Minnesota Tax-Exempt Fund,
IDS New York Tax-Exempt Fund and IDS Ohio Tax-
Exempt Fund (the funds). The funds are non-
diversified, open-end management investment
companies as defined in the Investment Company
Act of 1940 (as amended). The funds, excluding
IDS Insured Tax-Exempt Fund, concentrate their
investments in a single state and therefore may
have more credit risk related to the economic
conditions of the respective state than funds
that have a broader geographical diversification.
Significant accounting policies followed by the
funds 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.
Options transactions
In order to produce incremental earnings, protect
gains and facilitate buying and selling of
securities for investment purposes, each 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 each fund gives up
the opportunity of profit if the market price of
the security increases. The risk in writing a put
option is that each fund may incur a loss if the
market price of the security decreases and the
option is exercised. Each fund also has the
additional risk of not being able to enter into a
closing transaction if a liquid secondary market
does not exist. Each 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. Each
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 purchase put or call option is
adjusted by the amount of the premium received or
paid.
<PAGE>
PAGE
Futures transactions
In order to gain exposure to or protect itself
from changes in the market, each 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, each 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 each 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. Each fund recognizes a realized
gain or loss when the contract is closed or
expires.
Federal taxes
Since each fund's policy is to comply with all
sections of the Internal Revenue Code applicable
to regulated investment companies and to
distribute all of its taxable income to
shareholders, no provision for income or excise
taxes is required.
Net investment income (loss) and net realized
gains (losses) may differ for financial statement
and tax purposes primarily because of the
deferral of losses on certain futures contracts,
the recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax
purposes, and losses deferred due to "wash sale"
transactions. The character of distributions made
during the year from net investment income or net
realized gains may differ from their ultimate
characterization for federal income tax purposes.
Also, due to the timing of dividend
distributions, the fiscal year in which amounts
are distributed may differ from the year that the
income or realized gains (losses) were recorded
by the fund.
<PAGE>
PAGE
Dividends to shareholders
Dividends from net investment income, declared
daily and paid monthly, are reinvested in
additional shares of each fund at net asset value
or payable in cash. Capital gains, when
available, are distributed along with the last
income dividend at the end 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.
__________________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991,
each fund pays American Express Financial
Corporation a fee for managing its investments,
recordkeeping and other specified services. The
fee is a percentage of each 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 for each fund.
Each fund also pays American Express Financial
Corporation 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.
<PAGE>
PAGE
American Express Financial Corporation will
assume and pay any expenses (except taxes and
brokerage commissions) that exceed the most
restrictive applicable state expense limitation.
Sales charges by American Express Financial
Advisors Inc. for distributing the funds' shares
were $227,465 for IDS California, $154,982 for
IDS Massachusetts, $98,362 for IDS Michigan,
$580,207 for IDS Minnesota, $192,480 for IDS New
York and $115,834 for IDS Ohio Tax-Exempt Funds
for the six months ended Dec. 31, 1994.
Each fund also 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 each fund
recognizes the cost of payments during the time
the trustees serve on the board. The retirement
plan expense amounted to $1,159 for IDS
California, $984 for IDS Massachusetts, $2,156
for IDS Minnesota, $977 for IDS Michigan and $983
each for IDS New York and IDS Ohio Tax-Exempt
Funds for the six months ended Dec. 31, 1994.
__________________________________________________________________________
3. Securities transactions
For the six months ended Dec. 31, 1994, cost of
purchases and proceeds from sales (other than
short-term obligations) aggregated $44,412,773
and $61,704,150 for IDS California, $3,823,059
and $7,096,186 for IDS Massachusetts, $13,362,305
and $13,039,795 for IDS Michigan, $45,755,558 and
$58,471,667 for IDS Minnesota, $7,879,149 and
$9,662,389 for IDS New York and $17,614,116 and
$18,811,489 for IDS Ohio Tax-Exempt Funds.
Realized gains and losses are determined on an
identified cost basis.
<PAGE>
PAGE
__________________________________________________________________________
4. Share transactions
<TABLE>
<CAPTION>
Transactions in shares of each fund for the
periods indicated are as follows:
Number of shares:
________________________________________________________________________________________________________________________
California Tax-Exempt Fund Massachusetts Tax-Exempt Fund Michigan Tax-Exempt Fund
_____________________________ ______________________________ ______________________________
Six months Year ended Six months Year ended Six months Year ended
ended 12/31/94 6/30/94 ended 12/31/94 6/30/94 ended 12/31/94 6/30/94
(Unaudited) (Unaudited) (Unaudited)
________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Sold 1,942,845 6,578,766 1,018,916 4,061,994 1,652,212 2,687,659
Issued for reinvested
distributions 1,024,853 1,962,600 308,743 558,167 317,657 562,683
Redeemed (5,938,312) (7,091,287) (2,049,435) (2,564,761) (1,432,683) (1,739,752)
________________________________________________________________________________________________________________________
Net increase (decrease) (2,970,614) 1,450,079 (721,776) 2,055,400 537,186 1,510,590
________________________________________________________________________________________________________________________
Number of shares:
________________________________________________________________________________________________________________________
Minnesota Tax-Exempt Fund New-York Tax-Exempt Fund Ohio Tax-Exempt Fund
_____________________________ ______________________________ ______________________________
Six months Year ended Six months Year ended Six months Year ended
ended 12/31/94 6/30/94 ended 12/31/94 6/30/94 ended 12/31/94 6/30/94
(Unaudited) (Unaudited) (Unaudited)
________________________________________________________________________________________________________________________
Sold 4,816,184 14,961,095 1,404,397 3,952,327 1,319,523 3,231,719
Issued for reinvested
distributions 1,908,677 3,599,781 542,355 999,332 311,523 562,446
Redeemed (10,992,248) (13,233,479) (2,449,996) (3,127,657) (1,751,493) (1,753,354)
________________________________________________________________________________________________________________________
Net increase (decrease) (4,267,387) 5,327,397 (503,244) 1,824,002 (120,447) 2,040,811
________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
______________________________________________________________________________
5. Interest rate futures contracts
Investments in securities at Dec. 31, 1994,
included securities valued at $2,015,620 for
IDS California, $458,115 for IDS Massachusetts,
$424,075 for IDS Michigan, $4,854,250 for IDS
Minnesota, $1,383,045 for IDS New York and
$483,010 for IDS Ohio Tax-Exempt Funds that were
pledged as collateral to cover initial margin
deposits on 350, 83, 84, 1,400, 225 and 83 open
purchase contracts and 350, 83, 84, 1,400, 225
and 83 open sale contracts, respectively. The
market value of the open contracts at Dec. 31,
1994, was $64,421,875 for IDS California,
$15,277,188 for IDS Massachusetts, $15,461,250
for IDS Michigan, $128,843,750 for IDS Minnesota,
$41,414,062 for IDS New York and $15,277,188 for
IDS Ohio Tax-Exempt Funds with a net unrealized
gain of $362,963 for IDS California, $97,889 for
IDS Massachusetts, $99,264 for IDS Michigan,
$747,528 for IDS Minnesota, $235,685 for IDS New
York and $97,889 for IDS Ohio Tax-Exempt Funds.
__________________________________________________________________________
6. Option contracts written
<TABLE>
<CAPTION>
The number of contracts and premium amounts
associated with option contracts written is as
follows:
California Tax-Exempt
Six months ended Dec. 31, 1994
____________________________________________
Puts Calls
____________________________________________
Contracts Premium Contracts Premium
____________________________________________
<S> <C> <C> <C> <C>
Balance June 30, 1994 -- $ -- -- $ --
Opened 150 219,810 162 74,210
Exercised (150) (219,810) -- --
Expired -- -- (162) (74,210)
_____________________________________________________________
Balance Dec. 31, 1994 -- $ -- -- $ --
_____________________________________________________________
Massachusetts Tax-Exempt
Six months ended Dec. 31, 1994
____________________________________________
Puts
____________________________________________
Contracts Premium
____________________________________________
Balance June 30, 1994 -- $ --
Opened 40 58,611
Expired (40) (58,611)
____________________________________________
Balance Dec. 31, 1994 -- $ --
____________________________________________
Michigan Tax-Exempt
Six months ended Dec. 31, 1994
____________________________________________
Puts
____________________________________________
Contracts Premium
____________________________________________
Balance June 30, 1994 -- $ --
Opened 40 58,611
Expired (40) (58,611)
____________________________________________
Balance Dec. 31, 1994 -- $ --
____________________________________________
Minnesota Tax-Exempt
Six months ended Dec. 31, 1994
____________________________________________
Puts Calls
____________________________________________
Contracts Premium Contracts Premium
____________________________________________
Balance June 30, 1994 -- $ -- -- $ --
Opened 425 622,088 222 101,868
Exercised (425) (622,088) -- --
Expired -- -- (222) (101,868)
_____________________________________________________________
Balance Dec. 31, 1994 -- $ -- -- $ --
_____________________________________________________________
New York Tax-Exempt
Six months ended Dec. 31, 1994
____________________________________________
Puts Calls
____________________________________________
Contracts Premium Contracts Premium
____________________________________________
Balance June 30, 1994 -- $ -- -- $ --
Opened 100 146,441 73 33,520
Exercised (100) (146,441) -- --
Expired -- -- (73) (33,520)
_____________________________________________________________
Balance Dec. 31, 1994 -- $ -- -- $ --
_____________________________________________________________
Ohio Tax-Exempt
Six months ended Dec. 31, 1994
____________________________________________
Puts
____________________________________________
Contracts Premium
____________________________________________
Balance June 30, 1994 -- $ --
Opened 40 58,611
Expired (40) (58,611)
____________________________________________
Balance Dec. 31, 1994 -- $ --
____________________________________________
</TABLE>
______________________________________________________________________________
7. Capital loss carryover
For federal income tax purposes, capital loss
carryovers were approximately $3,617,000 for IDS
California, $208,000 for IDS Massachusetts,
$6,787,000 for IDS Minnesota, $1,680,000 for IDS
New York and $209,000 for IDS Ohio Tax-Exempt
Funds at Dec. 31, 1994. These capital loss
carryovers will expire in 1996 through 2003 if
not offset by subsequent capital gains.
<PAGE>
IDS California Tax-Exempt Trust
IDS California Tax-Exempt Fund
__________________________________________________________________________
8. Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important
financial information for evaluating each fund's
results.
Fiscal period ended June 30,
Per share income and capital changes*
1994** 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $5.13 $5.41 $5.18 $4.94 $4.89 $4.97
beginning of period
Income from investment operations:
Net investment income .15 .31 .30 .31 .32 .32
Net gains (losses) (.18) (.28) .23 .24 .05 (.08)
(both realized
and unrealized)
Total from investment (.03) .03 .53 .55 .37 .24
operations
Less distributions:
Dividends from net (.15) (.31) (.30) (.31) (.32) (.32)
investment income
Net asset value, $4.95 $5.13 $5.41 $5.18 $4.94 $4.89
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period $231 $255 $261 $222 $185 $142
(in millions)
Ratio of expenses to .61%*** .61% .63% .64% .60% .62%
average daily net assets
Ratio of net income to 6.00%*** 5.67% 5.78% 6.16% 6.51% 6.53%
average daily net assets
Portfolio turnover rate 18% 27% 5% 7% 23% 20%
(excluding short-term
securities)
Total return+ (0.6%)++ 0.4% 10.8% 11.4% 7.7% 5.0%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended Dec. 31, 1994, the annualized total return is (1.2%).
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Massachusetts Tax-Exempt Fund
Financial highlights
The table below shows certain important financial
information for evaluating the fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
1994** 1994 1993 1992 1991 1990
Net asset value, $5.24 $5.49 $5.20 $4.96 $4.88 $5.01
beginning of period
Income from investment operations:
Net investment income .15 .30 .30 .31 .32 .32
Net gains (losses) (.20) (.25) .29 .24 .08 (.12)
(both realized
and unrealized)
Total from investment (.05) .05 .59 .55 .40 .20
operations
Less distributions:
Dividends from net (.15) (.30) (.30) (.31) (.32) (.32)
investment income
Distributions from -- -- -- -- -- (.01)
realized gains
Total distributions (.15) (.30) (.30) (.31) (.32) (.33)
Net asset value, $5.04 $5.24 $5.49 $5.20 $4.96 $4.88
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period $66 $72 $64 $44 $27 $19
(in millions)
Ratio of expenses to .68%*** .69% .72% .72% .69% .70%
average daily net assets
Ratio of net income to 5.83%*** 5.40% 5.57% 6.05% 6.53% 6.59%
average daily net assets
Portfolio turnover rate 6% 6% 0% 2% 16% 36%
(excluding short-term
securities)
Total return+ (0.9%)++ 0.9% 11.5% 11.4% 8.5% 4.2%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended Dec. 31, 1994, the annualized total return is (1.8%). <PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Michigan Tax-Exempt Fund
Financial highlights
The table below shows certain important financial
information for evaluating the fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
1994** 1994 1993 1992 1991 1990
Net asset value, $5.35 $5.60 $5.31 $5.04 $4.96 $5.08
beginning of period
Income from investment operations:
Net investment income .15 .31 .31 .32 .32 .32
Net gains (losses) (.18) (.25) .29 .27 .08 (.12)
(both realized
and unrealized)
Total from investment (.03) .06 .60 .59 .40 .20
operations
Less distributions:
Dividends from net (.16) (.31) (.31) (.32) (.32) (.32)
investment income
Net asset value, $5.16 $5.35 $5.60 $5.31 $5.04 $4.96
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period $77 $77 $72 $55 $41 $29
(in millions)
Ratio of expenses to .65%*** .65% .68% .67% .67% .71%
average daily net assets
Ratio of net income to 5.80%*** 5.43% 5.64% 6.18% 6.45% 6.47%
average daily net assets
Portfolio turnover rate 18% 16% 2% 0% 3% 5%
(excluding short-term
securities)
Total return+ (0.7%)++ 1.0% 11.6% 12.0% 8.3% 4.1%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended Dec. 31, 1994, the annualized total return is (1.4%).
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Minnesota Tax-Exempt Fund
Financial highlights
The table below shows certain important financial
information for evaluating the fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
1994** 1994 1993 1992 1991 1990
Net asset value, $5.16 $5.44 $5.22 $5.01 $4.95 $5.05
beginning of period
Income from investment operations:
Net investment income .15 .31 .31 .33 .33 .32
Net gains (losses) (.17) (.28) .22 .21 .06 (.10)
(both realized
and unrealized)
Total from investment (.02) .03 .53 .54 .39 .22
operations
Less distributions:
Dividends from net (.15) (.31) (.31) (.33) (.33) (.32)
investment income
Net asset value, $4.99 $5.16 $5.44 $5.22 $5.01 $4.95
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period $374 $408 $402 $313 $233 $181
(in millions)
Ratio of expenses to .69%*** .66% .67% .66% .63% .64%
average daily net assets
Ratio of net income to 6.06%*** 5.73% 5.91% 6.43% 6.67% 6.62%
average daily net assets
Portfolio turnover rate 12% 13% 2% 7% 10% 8%
(excluding short-term
securities)
Total return+ (0.3%)++ 0.4% 10.5% 11.0% 8.2% 4.8%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended Dec. 31, 1994, the annualized total return is (0.5%).
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS New York Tax-Exempt Fund
Financial highlights
The table below shows certain important financial
information for evaluating the fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
1994** 1994 1993 1992 1991 1990
Net asset value, $5.12 $5.41 $5.13 $4.86 $4.80 $4.87
beginning of period
Income from investment operations:
Net investment income .15 .30 .30 .31 .31 .31
Net gains (losses) (.18) (.29) .28 .27 .06 (.07)
(both realized
and unrealized)
Total from investment (.03) .01 .58 .58 .37 .24
operations
Less distributions:
Dividends from net (.15) (.30) (.30) (.31) (.31) (.31)
investment income
Net asset value, $4.94 $5.12 $5.41 $5.13 $4.86 $4.80
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period $113 $120 $117 $95 $79 $68
(in millions)
Ratio of expenses to .66%*** .65% .67% .67% .65% .65%
average daily net assets
Ratio of net income to 5.97%*** 5.61% 5.79% 6.26% 6.53% 6.57%
average daily net assets
Portfolio turnover rate 7% 10% 0% 8% 17% 8%
(excluding short-term
securities)
Total return+ (0.5%)++ 0.1% 11.6% 12.3% 8.2% 5.0%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended Dec. 31, 1994, the annualized total return is (1.1%).
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Ohio Tax-Exempt Fund
Financial highlights
The table below shows certain important financial
information for evaluating the fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
1994** 1994 1993 1992 1991 1990
Net asset value, $5.26 $5.58 $5.28 $5.01 $4.94 $5.04
beginning of period
Income from investment operations:
Net investment income .15 .30 .30 .31 .32 .31
Net gains (losses) (.18) (.32) .31 .27 .07 (.09)
(both realized
and unrealized)
Total from investment (.03) (.02) .61 .58 .39 .22
operations
Less distributions:
Dividends from net (.15) (.30) (.30) (.31) (.32) (.31)
investment income
Distributions from -- -- (.01) -- -- (.01)
realized gains
Total distributions (.15) (.30) (.31) (.31) (.32) (.32)
Net asset value, $5.08 $5.26 $5.58 $5.28 $5.01 $4.94
end of period
Ratios/supplemental data
1994** 1994 1993 1992 1991 1990
Net assets, end of period $69 $72 $65 $47 $33 $25
(in millions)
Ratio of expenses to .66%*** .66% .67% .70% .68% .70%
average daily net assets
Ratio of net income 5.78%*** 5.44% 5.65% 6.14% 6.41% 6.43%
to average daily net assets
Portfolio turnover rate 25% 11% 0% 5% 2% 6%
(excluding short-term
securities)
Total return+ (0.5%)++ (0.5%) 12.1% 11.9% 8.1% 4.6%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1994 (Unaudited).
***Adjusted to an annual basis.
+Total return does not reflect payment of a sales charge.
++For the fiscal period ended Dec. 31, 1994, the annualized total return is (1.1%).
</TABLE>
<PAGE>
PAGE
Investments in securities
<TABLE>
<CAPTION>
IDS California Tax-Exempt Fund (Percentages represent value of
Dec. 31, 1994 (Unaudited) investments compared to net assets)
____________________________________________________________________________________________________________________________
Municipal bonds (97.0%)
____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,f) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Adelanto Improvement Agency Tax Allocation Refunding Bonds
Series B (FGIC Insured) 5.50 % 2023 $3,000,000 $ 2,496,090
Aliso Viejo Orange County District Community Facilities District #88-1
Special Tax Bonds Series 1992A 7.35 2018 3,000,000 3,339,390
Anaheim Public Finance Authority Revenue 2nd Series Electric Utilities
San Juan (FGIC Insured) 5.75 2022 1,400,000 1,197,434
Burbank Redevelopment Agency Tax Allocation Bonds Golden State Series 1992A 6.00 2013 1,500,000 1,321,080
Burbank Redevelopment Agency Tax Allocation Bonds Golden State Series 1993A 6.00 2023 2,000,000 1,690,540
Chapman College Educational Facilities Authority Revenue Bonds
Series 1989B 7.50 2018 500,000 495,670
Chico Walker Senior Housing Insured Revenue Bonds The Lodge Series 1993A 5.70 2023 1,500,000 1,211,130
Clearlake Redevelopment Agency Highlands Park Community Development
Tax Allocation Bonds Series 1993 6.40 2023 1,420,000 1,244,076
Eastern Municipal Water District Riverside County Water & Sewer
Revenue Certificates of Participation Series 1991 6.00 2023 1,000,000 875,030
Eastern Municipal Water District Riverside County Water & Sewer
Pre-Refunded Revenue Certificates of Participation Series 1991
(FGIC Insured) 6.50 2020 3,000,000 3,160,440
Eden Township Hospital District Insured Health Facility Refunding Revenue
Certificate of Participation Series 1993 (California Mortgage Insured) 5.75 2012 3,000,000 2,555,130
El Camino Hospital District Hospital Pre-Refunded Revenue
Certificate of Participation Series A 8.50 2017 1,500,000 1,646,580
Fontana Redevelopment Agency Refunding Certificate of Participation
Police Facility Series 1993 5.625 2016 1,750,000 1,462,055
Foothill-De Anza Community College Santa Clara County Refunding
Certificate of Participation Series 1993 (Connie Lee Insured) 5.25 2021 1,675,000 1,327,990
Fresno Health Facility Refunding Revenue Bonds Holy Cross Health System
(MBIA Insured) 5.625 2018 2,000,000 1,705,320
Garden Grove Certificate of Participation Bahia Village/Emerald Isle
(FSA Insured) 5.70 2023 2,660,000 2,240,651
Health Facility Finance Revenue Bonds Kaiser Permanente Series A 6.50 2020 1,945,000 1,794,496
Indian Wells Improvement Bonds Assessment District #13 7.50 2008 430,000 442,900
Lancaster Redevelopment Agency Tax Allocation Bonds (MBIA Insured) 5.80 2023 2,500,000 2,189,350
Long Beach Harbor Revenue Bonds AMT Series 1989A 7.25 2019 7,000,000 (e) 7,054,670
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.00 2020 5,000,000 5,337,100
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.30 2009 1,000,000 1,079,620
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.375 2018 2,900,000 3,139,279
Los Angeles County Transportation Commission Sales Tax Refunding
Revenue Bonds Series A 7.00 2019 4,150,000 4,152,075
See accompanying notes to investments in securities.<PAGE>
Los Angeles County Transportation Commission Sales Tax Pre-Refunded
Revenue Bonds Series A 8.00 2016 2,000,000 2,161,440
Los Angeles County Transportation Commission Sales Tax Pre-Refunded
Revenue Bonds Series 1988A 7.875 2008 500,000 545,780
Los Angeles County Transportation Commission Sales Tax Refunding
Revenue Bonds Series 1989A 7.40 2015 2,000,000 2,052,720
Los Angeles County Transportation Commission Sales Tax
Pre-Refunded Revenue Bonds Series A 7.60 2012 640,000 674,598
Los Angeles Department of Water & Power Electric Plant Revenue Bonds
Series 1990 7.125 2030 6,500,000 6,926,010
Los Angeles Multi-family Housing Revenue Bonds AMT Park Parthenia
Series 1986A (GNMA Insured) 7.40 2022 1,000,000 1,025,480
Los Angeles Single Family Home Mortgage Revenue Bonds AMT Series 1991A
(GNMA & FNMA Insured) 6.875 2025 3,000,000 2,960,190
Los Angeles State Building Authority Lease Pre-Refunded Revenue Bonds
State Department of General Services Lease Series 1988A 7.25 2006 3,000,000 3,202,680
Los Angeles State Building Authority Lease Pre-Refunded Revenue Bonds
State Department of General Services Lease Series 1988A 7.50 2011 1,500,000 1,611,630
Los Angeles State Harbor Revenue Bonds Escrowed to Maturity 7.60 2018 1,000,000 1,083,480
Los Angeles USD Refunding Certficate of Participation (FSA Insured) 5.50 2010 1,000,000 886,540
Los Angeles Wastewater System Refunding Revenue Bonds Series A
(MBIA Insured) 5.70 2020 5,500,000 4,772,460
Los Angeles Wastewater System Pre-Refunded Revenue Bonds Series 1987 8.125 2017 1,000,000 1,090,260
Marin County Municipal Water District Revenue Bonds Series 1993 5.65 2023 3,500,000 2,883,055
Mayer Memorial Hospital District Insured Health Facility Revenue Bonds
(California Mortgage Insured) 5.50 2013 950,000 779,048
Metropolitan Water District Southern California Waterworks Revenue Bonds 5.50 2019 4,500,000 3,788,055
Modesto Certificate of Participation Pre-Refunded Bonds Community Center 8.10 2015 1,000,000 1,090,720
Modesto Irrigation Certificate of Participation 7.25 2015 2,000,000 2,028,640
Mount Diablo Hospital District Hospital Pre-Refunded Revenue Bonds
Series 1990A (AMBAC Insured) 7.00 2017 3,000,000 3,242,670
Northern California Public Power Authority Power Pre-Refunded Revenue Bonds
Hydroelectric Series 1986B-3 8.00 2024 2,000,000 2,157,860
Northern California Public Power Authority Power Pre-Refunded Revenue Bonds
Hydroelectric #1 Series 1986B-1 8.00 2024 2,100,000 2,266,467
Northern California Public Power Authority Refunding Revenue Bonds
Geothermal #3 Series 1985A 7.00 2010 830,000 838,989
Northern California Public Power Authority Refunding Revenue Bonds
Geothermal #3 Series 1987A 7.00 2007 6,825,000 6,975,833
Northern California Transmission Agency California-Oregon Transmission
Pre-Refunded Revenue Bonds Series 1990A (MBIA Insured) 7.00 2024 2,000,000 2,143,940
Northern California Transmission Revenue Linked Select Auction
Variable Rate Security & Residual Interest Bonds (MBIA Insured) 5.358 2024 2,500,000 (g) 2,080,875
Novato Community Facility District #1 Vintage Oaks Public Improvement
Special Tax Refunding Bonds 7.25 2021 2,000,000 1,894,300
Pittsburg Public Financing Authority Wastewater
Refunding Bonds Series 1994A (FGIC Insured) 5.125 2015 1,000,000 814,600
Pleasanton Joint Powers Financing Authority Reassessment Revenue Bonds
Series 1993A 6.15 2012 1,955,000 1,760,321
Port of Oakland Revenue Bonds AMT Series 1989A (BIG Insured) 7.60 2016 500,000 514,160
Rancho Cucamonga Redevelopment Agency 1990 Tax Allocation Pre-Refunded Bonds
(MBIA Insured) 7.125 2019 3,540,000 3,811,837
Rancho Mirage Joint Powers Finance Authority Certificate of Participation
Eisenhower Memorial Hospital 7.00 2022 4,250,000 4,104,480
Redding Redevelopment Agency Tax Allocation Refunding Bonds
Canby Hilltop Cypress Series D (CGIC Insured) 5.00 2023 4,700,000 3,562,177
Riverside Electric Revenue Bonds Series 1991 6.00 2015 6,530,000 5,939,230
Sacramento Municipal Utility District Series R 6.00 2015-17 7,500,000 6,741,735
Sacramento Municipal Utility District Pre-Refunded Series V 7.50 2018 2,775,000 2,950,075
Sacramento Municipal Utility District Pre-Refunded Series W 7.50 2018 1,980,000 2,108,918
Sacramento Municipal Utility District Pre-Refunded Series Y (MBIA Insured) 6.75 2019 3,400,000 3,630,316
Sacramento Redevelopment Agency Tax Allocation Bonds Series 1990A
(MBIA Insured) 6.50 2013 3,500,000 3,492,020
San Diego County Capital Asset Lease Certificate of Participation
Series 1993 Inverse Floater (AMBAC Insured) 6.83 2007 3,200,000 (d) 2,720,000
San Diego Industrial Development Revenue Bonds San Diego Gas & Electric
Series A 7.625 2021 1,000,000 1,026,920
San Diego Regional Transportation Commission Sales Tax
Pre-Refunded Revenue Bonds Limited Tax Series 1989A 6.25 2008 5,030,000 5,151,575
San Francisco City & County Airport Commission International Airport
Refunding Revenue Bonds Second Series Issue 1 (AMBAC Insured) 6.30 2011 1,000,000 976,000
San Francisco Redevelopment Financing Authority Tax Allocation
Refunding Bonds Series B (FGIC Insured) 5.25 2017 1,500,000 1,226,070
San Joaquin County Pre-Refunded Certificate of Participation
Human Services Facility Series 1989 (BIG Insured) 6.70 2009 3,500,000 3,700,725
San Joaquin County Certificate of Participation
Jail & Sheriffs Operation Center (MBIA Insured) 6.75 2015 2,000,000 2,126,400
San Jose Redevelopment Agency Merged Area Tax Allocation Bonds
Series 1993 Inverse Floater (MBIA Insured) 6.586 2014 3,000,000 (d) 2,141,250
San Jose Redevelopment Agency Merged Area Tax Allocation Redevelopment
Project (MBIA Insured) 6.00 2015 5,500,000 5,107,575
San Mateo County Transit District Limited Tax Pre-Refunded Bonds
Series 1990A (MBIA Insured) 6.50 2020 1,500,000 1,550,925
Santa Clara County Transit District Sales Tax Revenue Bonds Series 1991A 6.25 2021 3,000,000 2,764,230
Santa Cruz Certificate of Participation 8.375 2007 1,220,000 1,236,092
Santa Rosa Sonoma County Wastewater Service Facility District
Pre-Refunded Improvement Bonds Series 1989 7.80 2015 1,000,000 1,076,150
Sonoma County Community Redevelopment Agency Tax Allocation Bonds
Windsor Redevelopment Series C 7.90 2014 400,000 408,460
Southern California Home Financing Authority Single Family Mortgage
Revenue Bonds AMT 1990B (GNMA Insured) 7.75 2024 575,000 600,162
Southern California Public Power Authority Transmission
Pre-Refunded Revenue Bonds Series 1986A 7.875 2018 1,500,000 1,599,060
Southern California Public Power Authority Transmission Revenue
Subordinate Refunding Bonds Southern Transmission 5.50 2020 3,000,000 2,474,430
Southern California Public Power Authority Transportation Bonds Series B 7.375 2021 400,000 421,696
State Department Water Resources Water System Pre-Refunded Revenue Bonds
Central Valley Series D 7.70 2024 2,400,000 2,587,200
State Department Water Resource Water System Revenue Bonds
Central Valley Project Series L 5.50 2023 3,000,000 2,457,510
State Education Facility Authority Revenue Bonds Pomona College 6.00 2017 3,000,000 2,730,330
State Health Facility Finance Authority Pre-Refunded Revenue Bonds
St. Joseph Health System Series 1989A 6.90 2014 3,500,000 3,737,685
State Housing Finance Agency Home Mortgage Revenue Bonds Series 1986B 6.90 2016 1,990,000 1,987,612
State Pollution Control Finance Authority Pollution Control Revenue Bonds
AMT Southern California Edison Series 1988A 6.90 2006 2,000,000 2,037,520
State Public Works Board Lease Revenue Bonds California Community Colleges
Series 1994B 7.00 2019 2,000,000 1,985,880
State Public Works Board University of California Lease Pre-Refunded
Revenue Bonds Series 1990A 7.00 2015 2,250,000 2,425,838
State University Parking System Revenue Bonds 7.70 2009 225,000 238,909
State University Revenue Bonds San Jose State University Student Union
Series B 7.60 2007 150,000 156,897
Statewide Community Development Authority Health Facilities Revenue Bonds
Unihealth America Series 1993A Inverse Floater (AMBAC Insured) 5.897 2011 5,000,000 (d) 3,925,000
Stockton Refunding Wastewater System Certificate of Participation
(AMBAC Insured) 5.50 2015 1,250,000 1,070,887
Stockton Single Family Mortgage Revenue Bonds AMT
Series 1990A (GNMA Insured) 7.50 2023 115,000 123,802
Suisun City Redevelopment Agency Tax Allocation Refunded Bonds
(MBIA Insured) 5.50 2023 1,000,000 836,660
Turlock Irrigation District Pre-Refunded Bonds Series 1986A 7.75 2018 1,000,000 1,043,730
University of Southern California Educational Facilities Authority
Pre-Refunded Revenue Bonds Series 1989B 6.75 2015 5,000,000 4,982,700
Upland Certificate of Participation Water System Refunding Bonds
(FGIC Insured) 6.60 2016 1,000,000 993,090
Vacaville Limited Obligation Improvement Bonds
Water Rights Assessment District 8.00 2007 830,000 853,838
______________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $222,441,022) $224,234,493
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term security (1.6%)
______________________________________________________________________________________________________________________________
Issuer (c) Effective Amount Value(a)
yield payable at
maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Municipal note
Contra Costa Transportation Authority Series 1993A (FGIC Insured)
03-01-09 5.65% $3,800,000 (g) $ 3,800,000
_____________________________________________________________________________________________________________________________
Total short-term security
(Cost: $3,800,000) $ 3,800,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $226,241,022)(h) $228,034,493
_____________________________________________________________________________________________________________________________
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 12-31-94 6-30-94
_____________________________________________________________________________
AAA 59% 63%
AA 22 18
A 16 16
BBB and below 3 3
Non-rated -- --
Total 100% 100%
_____________________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
CGIC -- Capital Guarantee Insurance Company
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
MBIA -- Municipal Bond Investors Assurance
(d) 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 Dec. 31, 1994. Inverse floaters in the aggregate represent 3.8% of the fund's
net assets as of Dec. 31, 1994.
(e) Partially pledged as inital deposit on the following open interest rate futures contracts
(see Note 5 to the financial statements):
Type of security Notional amount
_____________________________________________________
Purchase contracts
Municipal Bonds March 1995 $35,000,000
Sales contracts
U.S. Treasury Bonds March 1995 35,000,000
_____________________________________________________
(f) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(g) Interest rate varies to reflect current market conditions; rate shown is the effective rate on
Dec. 31, 1994.
(h) At Dec. 31, 1994, the cost of securities for federal income tax purposes was approximately $226,148,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $9,434,000
Unrealized depreciation (7,548,000)
______________________________________________________________________
Net unrealized appreciation $1,886,000
______________________________________________________________________
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Massachusetts Tax-Exempt Fund (Percentages represent value of
Dec. 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (96.9%)
_____________________________________________________________________________________________________________________________
Name of issuer and title of issue (b,c,d) Coupon Maturity Principal Value(a)
rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Bay Transit Authority Series A (Secondary FGIC Insured) 5.75 % 2022 $1,000,000 $ 879,510
Bay Transportation Authority General Transportation System
Refunding Bonds Series 1992B 6.20 2016 1,500,000 1,415,625
Boston City Hospital Refunding Revenue Bonds Series B (FHA Insured) 5.75 2023 3,000,000 2,512,590
Boston City Hospital Pre-Refunded Revenue Bonds Series A (FHA Insured) 7.625 2021 1,000,000 1,099,380
Boston General Obligation Bonds Series 1991A (MBIA Insured) 6.75 2011 500,000 534,840
Boston General Obligation Refunding Bonds Series 1993A (AMBAC Insured) 5.65 2009 1,500,000 (e) 1,374,345
Boston Industrial Development Financing Authority Revenue Bonds
Massachusetts College of Pharmacy Series 1993A (Connie Lee Insured) 5.25 2026 1,000,000 782,180
Boston Water & Sewer Commission General Pre-Refunded Revenue Bonds Senior
Pre-Refunded Series 1991A (FGIC Insured) 7.00 2018 1,000,000 1,086,230
Boston Water & Sewer Commission General Subordinate Revenue Bonds Series A
(BIG Insured) 6.00 2008 500,000 486,230
Boston Water & Sewer Commission Senior Revenue Bonds Series A 7.875 2013 365,000 386,221
Boston Water & Sewer Commission Senior Pre-Refunded Revenue Bonds Series A 7.875 2013 210,000 223,539
Chelsea General Obligation Bonds School Loan Act of 1948
Full Construction Program (AMBAC Insured) 6.00 2014 2,000,000 1,869,500
Commonwealth General Obligation Consolidated Loan Pre-Refunded Bonds
Series 1990A (FGIC Insured) 7.25 2009 500,000 542,938
Greater Lawrence Sanitary District North Andover General Obligation Bonds 8.50 2005 625,000 645,600
Health & Educational Facilities Authority Refunding Revenue Bonds
Beth Israel Hospital Series 1989E 7.00 2009-14 550,000 555,751
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series A (MBIA Insured) 7.50 2008 500,000 531,920
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series C 5.90 2011 1,000,000 795,420
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Beverly Hospital Series D (MBIA Insured) 7.30 2019 400,000 432,788
Health & Educational Facilities Authority Revenue Bonds
Boston College Series J (FGIC Insured) 6.625 2021 2,000,000 1,991,340
Health & Educational Facilities Authority Revenue Bonds
Boston College Series K 5.25 2023 1,000,000 801,860
Health & Educational Facilities Authority Revenue Bonds
Brigham & Women's Hospital Series C 6.75 2021 500,000 487,340
See accompanying notes to investments in securities.
<PAGE>
Health & Educational Facilities Authority Revenue Bonds
Brigham & Women's Hospital Series 1991D 6.75 2024 1,000,000 958,170
Health & Educational Facilities Authority Revenue Bonds
Charlton Memorial Hospital Series 1991B 7.25 2013 1,750,000 1,753,290
Health & Educational Facilities Authority Revenue Bonds
Holyoke Hospital Series B 6.50 2015 500,000 436,780
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Lahey Clinic Medical Center Series A (MBIA Insured) 7.625 2018 500,000 541,015
Health & Educational Facilities Authority Revenue Bonds
Lahey Clinic Medical Center Series B (MBIA Insured) 5.625 2015 1,500,000 1,314,090
Health & Educational Facilities Authority Revenue Bonds
Lahey Clinic Medical Center Series B (MBIA Insured) 5.375 2023 1,000,000 819,450
Health & Educational Facilities Authority Revenue Bonds
Melrose-Wakefield Hospital Series 1992B 6.375 2016 1,000,000 894,450
Health & Educational Facilities Authority Revenue Bonds
McLean Hospital Series 1992C (FGIC Insured) 6.625 2015 1,250,000 1,245,125
Health & Educational Facilities Authority Revenue Bonds
Morton Hospital & Medical Center Series B (Connie Lee Insured) 5.25 2014 1,000,000 828,280
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Mount Auburn Hospital Series A (MBIA Insured) 7.875 2018 205,000 223,770
Health & Educational Facilities Authority Revenue Bonds
New England Deaconess Hospital Series 1992D 6.625 2012 1,000,000 942,610
Health & Educational Facilities Authority Revenue Bonds
Newton Wellesley Hospital Series 1991D (MBIA Insured) 7.00 2015 1,000,000 1,019,850
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Northeastern University Series 1989C (AMBAC Insured) 7.10 2006 1,000,000 1,061,990
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Northeastern University Series E (MBIA Insured) 6.55 2022 1,000,000 986,020
Health & Educational Facilities Authority Revenue Bonds
South Shore Hospital Series 1992D (MBIA Insured) 6.50 2022 1,000,000 966,490
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Stonehill College Series 1990D (AMBAC Insured) 7.70 2020 1,000,000 1,110,980
Health & Educational Facilities Authority Revenue Bonds
Suffolk University Series B (Connie Lee Insured) 6.35 2022 2,495,000 2,334,122
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Wentworth Institute of Technology Series A (AMBAC Insured) 7.40 2010 750,000 819,653
Health & Educational Facilities Authority Revenue Bonds
Valley Regional Health System Series C (Connie Lee Insured) 5.75 2018 1,000,000 864,060
Health & Educational Facilities Authority Revenue Bonds
Wentworth Institute of Technology Series B (Connie Lee Insured) 5.50 2023 1,500,000 1,233,945
Industrial Finance Agency 1st Mortgage Pre-Refunded Revenue Bonds
Berkshire Retirement Community at Lennox 9.875 2018 200,000 220,144
Industrial Finance Agency Pollution Control Refunding Revenue Bonds
Eastern Edison Series 1993 5.875 2008 1,500,000 1,328,250
Industrial Finance Agency Resource Recovery Revenue Bonds AMT
Ogden Haverhill Series 1986A (AMBAC Insured) 7.375 2011 175,000 180,190
Industrial Finance Agency Resource Recovery Revenue Bonds
SEMASS Series 1991A 9.00 2015 1,500,000 1,585,710
Industrial Finance Agency Revenue Bonds Museum of Science Series 1989
(FSA Insured) 7.30 2009 1,000,000 1,087,210
Leominster General Obligation Bonds (MBIA Insured) 7.50 2009 1,000,000 1,064,920
Lowell Limited Tax General Obligation State Qualified Refunding Bonds
Series A (FSA Insured) 5.50 2010 800,000 709,864
Mansfield General Obligation Bonds (AMBAC Insured) 6.70 2011 1,000,000 1,009,380
Municipal Wholesale Electric Power Supply System Revenue Bonds Series A 6.00 2018 1,125,000 996,188
Municipal Wholesale Electric Power Supply System Pre-Refunded Revenue Bonds
Series 1992B 6.75 2017 1,395,000 1,496,361
Nantucket General Obligation Bonds 6.80 2011 1,000,000 1,007,220
North Andover General Obligation Bonds (MBIA Insured) 7.35 2008 310,000 334,366
Port Authority Revenue Bonds AMT Series 1988A 7.75 2018 515,000 528,411
Port Authority Revenue Bonds AMT Series 1990A (FGIC Insured) 7.50 2020 1,000,000 1,040,000
Quincy Refunding Revenue Bonds Quincy Hospital Series 1993
(FSA Insured) 5.25 2016 1,000,000 826,880
Southeastern University Building Authority Refunding Revenue Bonds
Series 1986A 7.80 2016 100,000 103,417
Southeastern University Building Revenue Bonds 7.80 2011 325,000 336,105
Southern Berkshire Regional School District Unlimited Tax
General Obligation Pre-Refunded Bonds (AMBAC Insured) 7.55 2010 1,000,000 1,100,110
Springfield Limited Tax General Obligation Municipal Purpose Loan Bonds
Series 1993B (MBIA Insured) 6.00 2013 750,000 699,930
State College Building Authority Pre-Refunded Revenue Bonds Series 1986A 7.125 2006 150,000 156,181
State College Building Authority Pre-Refunded Revenue Bonds Series 1986A 7.25 2016 250,000 261,408
State General Obligation Consolidated Loan Bonds Series 1991A
(FGIC Insured) 6.00 2011 1,095,000 1,034,895
State Housing Finance Agency Single Family Housing Revenue Bonds AMT
Series 13 7.95 2023 500,000 517,730
State Housing Finance Authority Residential Development Bonds Series 1992A
(FNMA Insured) 6.875 2011 1,000,000 1,014,010
State Housing Finance Authority Single Family Mortgage Housing
Revenue Bonds Series 4 7.375 2014 465,000 477,950
State Housing Finance Authority Single Family Mortgage Housing
Revenue Bonds AMT Series 7 8.10 2020 260,000 267,509
State Water Resource Authority Revenue Bonds Series A
(Secondary MBIA Insured) 5.50 2022 1,100,000 931,403
University of Lowell Building Authority Facilities Revenue Bonds
4th Series A 7.40 2007 125,000 129,427
University of Lowell Building Authority Facilities Revenue Bonds
4th Series A 7.60 2012 50,000 52,075
University of Massachusetts Building Authority Revenue Bonds Series A
(FSA Insured) 7.50 2014 500,000 517,850
University of Massachusetts Building Authority Revenue Bonds Series A
Escrowed to Maturity 7.50 2011 120,000 128,315
Water Resource Authority General Pre-Refunded Revenue Bonds Series 1990A 7.625 2014 500,000 551,240
Water Resource Authority General Pre-Refunded Revenue Bonds Series 1991A 6.50 2019 1,000,000 1,058,110
Water Resource Authority General Revenue Bonds Series 1993C 5.25 2020 1,400,000 1,121,400
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $64,891,403) $63,663,446
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $64,891,403)(f) $63,663,446
_____________________________________________________________________________________________________________________________
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 12-31-94 06-30-94
_______________________________________________________________________________________________________
AAA 67% 64%
AA 8 12
A 18 17
BBB and below 7 7
Non-rated -- --
Total 100% 100%
_______________________________________________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
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 Minimum Tax
(e) Partially pledged as initial deposit on the following open interest rate futures contracts
(see Note 5 to the financial statements):
Type of security Notional amount
Purchase contracts
__________________________________________________________
Municipal Bonds March 1995 $8,300,000
__________________________________________________________
Sale contracts
__________________________________________________________
U.S. Treasury Bonds March 1995 8,300,000
__________________________________________________________
(f) At Dec. 31, 1994, the cost of securities for federal income tax purposes was approximately
$64,878,000 and the approximate aggregate gross unrealized appreciation and depreciation based
on that cost was:
Unrealized appreciation $1,826,000
Unrealized depreciation (3,041,000)
_______________________________________________________________________________________________________
Net unrealized depreciation $(1,215,000)
_______________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Michigan Tax-Exempt Fund (Percentages represent value of
Dec. 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (94.4%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Alpena County Limited Tax Hospital Improvement Pre-Refunded Bonds
Series B (AMBAC Insured) 8.75 % 2002 $ 150,000 $ 155,532
Auburn Hills Limited Tax General Obligation Street Improvement Bonds 6.00 2004 200,000 200,802
Battle Creek Calhoun County Downtown Development Authority Bonds
Series 1994 7.65 2022 1,250,000 1,266,788
Battle Creek Water Supply System Pre-Refunded Revenue Bonds Series 1990B 6.375 2008-10 1,640,000 1,713,210
Brighton District Library Unlimited Tax Improvement General Obligation Bonds
Series 1994 (MBIA Insured) 6.00 2015 1,000,000 929,400
Buena Vista School District Saginaw County School Building & Site
Unlimited Tax General Obligation Pre-Refunded Bonds Series 1991 7.20 2016 1,500,000 1,627,350
Caledonia Community School Unlimited Tax General Obligation
Refunding Revenue Bonds (AMBAC Insured) 5.50 2022 2,000,000 (e) 1,696,300
Chassell Township Schools County of Houghton Refunding Unlimited Tax
General Obligation Bonds Qualified School Bond Loan Fund 5.25 2020 1,045,000 837,693
Chelsea General Obligation Bonds (BIG Insured) 8.20 2006 145,000 159,023
Chippewa Valley School Macomb County Qualified School Building Loan Fund
Unlimited Tax General Obligation Bonds (FGIC Insured) 5.00 2021 1,000,000 786,790
Comstock Park Public School Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds Series 1989 6.00 2016 400,000 412,652
Comstock Park Public School Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds Series 1989 6.875 2010 260,000 276,663
Detroit General Obligation Pre-Refunded Bonds Distributable State Aid
Series 1989 (AMBAC Insured) 7.20 2009 1,000,000 1,075,240
Detroit Sewer Disposal Pre-Refunded Revenue Bonds 8.00 2008 500,000 538,895
Detroit Unlimited Tax General Obligation Bonds Series A 7.25 2009 1,000,000 1,007,310
Detroit Unlimited Tax General Obligation Bonds Series A 8.625 2007 100,000 105,514
Detroit Unlimited Tax General Obligation Bonds Series 1988A 7.875 2008 700,000 717,794
Detroit Water Supply System Pre-Refunded Revenue Bonds
Series 1988 (MBIA Insured) 7.875 2008 400,000 435,952
Detroit Water Supply System Refunding Revenue Bonds
Series 1993 (FGIC Insured) 5.00 2023 1,000,000 771,580
Dexter Community Schools Building Site & Refunding Unlimited Tax
General Obligation Bonds 5.00 2017 1,500,000 1,176,180
East Lansing School District School Building & Site Unlimited Tax
General Obligation Bonds Series 1991 6.625 2014 1,000,000 989,680
Eastern Michigan University Pre-Refunded Revenue Bonds Residence Hall 7.80 2006 205,000 215,547
Farmington Hills Hospital Finance Authority Revenue Bonds
Botsford General Hospital Series 1992A (MBIA Insured) 6.50 2022 1,500,000 1,455,270
Forest Hills School District Unlimited Tax General Obligation
Pre-Refunded Bonds 7.375 2015 1,000,000 1,085,310
See accompanying notes to investments in securities.
Frenchtown Resort Drainage District Monroe County Drain
Pre-Refunded Bonds Series 1987 7.50 2011-12 615,000 668,776
Garden City School District Authority Pre-Refunded Revenue Bonds 7.80 2010 305,000 333,405
Grand Rapids Tax Increment Revenue Bonds Series 1994 (MBIA Insured) 6.875 2024 380,000 383,705
Grand Rapids Water Supply System Improvement
Pre-Refunded Revenue Bonds Series 1988 7.875 2018 700,000 757,505
Grand Rapids Water Supply System Improvement Pre-Refunded Revenue Bonds
Series 1990 (FGIC Insured) 7.25 2020 1,250,000 1,355,550
Grand Rapids Water Supply System Refunding Revenue Bonds Series 1991
(FGIC Insured) 5.75 2018 2,500,000 2,226,050
Holland School District Unlimited Tax General Obligation Bonds
Counties of Ottawa & Allegan 1989 School Building & Site Boards 7.375 2019 1,000,000 1,063,370
Inkster School District Unlimited Tax General Obligation
Pre-Refunded Bonds (AMBAC Insured) 7.00 2018 450,000 482,386
Isoco County Water Supply System Limited Tax General Obligation Bonds
(AMBAC Insured) 5.50 2008-10 575,000 520,535
Jackson County Unlimited Tax General Obligation Refunding Bonds
Series 1987 6.75 2011 150,000 156,651
Kalamazoo Hospital Financial Authorization Bronson Methodist Hospital
Pre-Refunded Bonds 9.375 2016 150,000 154,833
Kent County Hospital Pre-Refunded Revenue Bonds Butterworth Hospital
Series 1989A 7.25 2013 500,000 538,190
Kent County Refuse Disposal System Limited Tax
General Obligation Refunding Bonds Series 1987 8.40 2010 150,000 162,648
Laingsburg Community Schools Unlimited Tax General Obligation Bonds 6.375 2021 1,500,000 1,425,690
Lincoln Consolidated School District Refunding Revenue Bonds (FGIC Insured) 5.80 2014 1,000,000 905,130
Lincoln Consolidated School District Refunding Revenue Bonds (FGIC Insured) 5.85 2021 500,000 443,765
Marquette Hospital Finance Authority Refunding Revenue Bonds
Marquette General Hospital Series 1989C 7.50 2007-19 825,000 843,442
Monroe County Pollution Control Revenue Bonds AMT Detroit Edison
Fermi Plants Series 1990I (FGIC Insured) 7.65 2020 1,000,000 1,048,760
Monroe County Pollution Control Revenue Bonds AMT Detroit Edison
Fermi 2 Plants Series CC (AMBAC Insured) 7.50 2019 1,750,000 1,817,375
Muskegon Hospital Finance Authority Refunding Revenue Bonds Hackley Hospital
Series 1988A 8.00 2008 400,000 428,848
Northville Public Schools Unlimited Tax General Obligation Bonds
Series 1991B 7.00 2008 1,500,000 1,553,310
Plymouth-Canton Community School District Series 1992C 6.50 2016 1,000,000 971,820
Richmond Limited Obligation Refunding Revenue Bonds Kmart Series A 6.625 2007 530,000 513,199
River Rouge School District #19 Unlimited Tax General Obligation Bonds
(FSA Insured) 5.50 2009 1,185,000 1,073,397
Rochester Hill Unlimited Tax General Obligation Bonds Series 1990A 6.00 2009-10 735,000 702,147
Rockford Public Schools Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds 7.375 2019 1,000,000 1,084,830
Rockford Public Schools Unlimited Tax General Obligation Bonds
Qualified School Bond Loan Fund 5.875 2019 1,500,000 1,305,495
Rockford Public Schools Unlimited Tax Improvement General Obligation Bonds
(Secondary AMBAC Insured) 5.875 2019 1,000,000 898,220
Southfield Public Schools Building & Site Unlimited Tax
General Obligation Bonds 5.875 2022 1,000,000 876,790
South Lake District Unlimited Tax General Obligation Bonds 6.80 2010 355,000 362,881
State Building Authority Refunding Revenue Bonds Series 1991I 6.25 2020 2,200,000 2,041,006
State Hospital Finance Authority Hospital Pre-Refunded Revenue Bonds
Detroit Medical Center Series 1988A 8.125 2012 310,000 340,600
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Detroit Medical Center Series 1988A 8.125 2012 90,000 97,465
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Detroit Medical Center Series 1988B 8.00 2008 500,000 548,880
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Sisters of Mercy Health Group Series 1993P (MBIA Insured) 5.25 2021 1,200,000 963,168
State Hospital Finance Authority Hospital Pre-Refunded Revenue Bonds
McLaren Obligated Group Series 1991A 7.50 2021 1,750,000 1,941,082
State Hospital Finance Authority Revenue Bonds Henry Ford Hospital
Series 1990A 7.00 2010 1,000,000 1,009,250
State Hospital Finance Authority Revenue Bonds Henry Ford Hospital
Series 1992A 5.75 2017 1,500,000 1,271,775
State Hospital Finance Authority Pre-Refunded Revenue Bonds
Oakwood Hospital Group Series 1990A (FGIC Insured) 7.10 2018 1,000,000 1,081,950
State Municipal Bond Authority Refunding Revenue Bonds (AMBAC Insured) 5.70 2016 1,000,000 889,170
State Public Power Agency Belle River Refunding Revenue Bonds
Series A 5.25 2018 1,000,000 815,020
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Detroit Edison Series 1990BB (MBIA Insured) 7.00 2008 1,000,000 1,064,020
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Detroit Edison Series 1992BB (FGIC Insured) 6.50 2016 2,500,000 2,474,250
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Ford Motor Series 1991A 7.10 2006 1,650,000 1,707,436
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Escrowed to Maturity Oxford Institute 7.875 2005 150,000 166,970
State Strategic Fund Limited Tax Obligation Revenue Bonds AMT
Great Lakes Pulp & Fibre 10.25 2016 1,000,000 1,002,530
State Trunk Line Bonds Series A (FGIC Insured) 5.75 2020 1,065,000 933,132
State Trunk Line Refunded Bonds Series B-1 5.50 2021 2,500,000 2,093,600
State University Revenue Bonds Series A 5.50 2022 560,000 469,162
State University Revenue Parking System Pre-Refunded Bonds
Ann Arbor Campus Series A 7.40 2015 150,000 157,125
Taylor Tax Increment Finance Authority Bonds Series 1989A (MBIA Insured) 6.00 2007-09 1,205,000 1,166,403
Van Buren Township Tax Increment Revenue Bonds Series 1994 8.40 2016 1,000,000 1,011,670
Warren Consolidated School District Refunding Revenue Bonds
Unlimited Tax General Obligation Bonds (MBIA Insured) 5.50 2021 1,500,000 1,267,185
Waterford School District Unlimited Tax General Obligation Bonds
Series Q 6.25 2013 340,000 324,958
Wayne County Airport Revenue Bonds AMT Detroit Metropolitan Airport
Series 1986 (FGIC Insured) 8.00 2014 250,000 262,857
Wayne County Airport Revenue Bonds AMT Detroit Metropolitan Airport
Series 1990A (AMBAC Insured) 7.00 2020 1,080,000 1,086,404
Wayne County Airport Revenue Bonds Detroit Metropolitan Airport Series 1993C
(MBIA Insured) 5.25 2021 1,500,000 1,208,250
Wyandotte Electric Pre-Refunded Revenue Bonds Series 1987 (AMBAC Insured) 7.875 2017 300,000 323,964
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $72,304,255) $72,414,460
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term security (1.7%)
_____________________________________________________________________________________________________________________________
Issuer (f) Effective Amount Value(a)
yield payable
at
maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Municipal note
Regents of the University of Michigan Hospital
Refunding Revenue Bonds Series 1992A
12-01-19 6.15% $1,300,000 $ 1,300,000
_____________________________________________________________________________________________________________________________
Total short-term security
(Cost: $1,300,000) $ 1,300,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $73,604,255)(g) $73,714,460
_____________________________________________________________________________________________________________________________
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 12-31-94 06-30-94
______________________________________________________________________________________________________
AAA 62% 65%
AA 25 25
A 6 6
BBB and below 6 4
Non-rated 1 -
Total 100% 100%
(c) The following abbreviations are used in portfolio descriptions to identify the insurer
of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
FGIC -- Financial Guarantee Insurance Corporation
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
(d) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(e) Partially pledged as initial deposit on the following open interest rate futures contracts
(see Note 5 to the financial statements):
Type of security Notional amount
________________________________________________________________________________
Purchase contracts
Municipal Bonds March 1995 $8,400,000
Sales contracts
U.S. Treasury Bonds March 1995 8,400,000
________________________________________________________________________________
(f) Interest rate varies to reflect current market conditions; rate shown is the effective rate
on Dec. 31, 1994.
(g) At Dec. 31, 1994, the cost of securities for federal income tax purposes was approximately $73,578,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $ 2,698,000
Unrealized depreciation (2,562,000)
______________________________________________________________________________________________________
Net unrealized appreciation $ 136,000
______________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities (Percentages represent
IDS Minnesota Tax-Exempt Fund value of investments
Dec. 31, 1994 (Unaudited) compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (98.3%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Anoka County General Obligation Capital Improvement Revenue Bonds
Series 1989B 7.00 % 2007-10 $ 7,950,000 $ 8,318,244
Anoka County Resource Recovery Revenue Bonds Northern States Power
Series 1985 7.15 2008 3,750,000 3,887,025
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.25 2001 155,000 160,630
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.30 2002 175,000 181,513
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.40 2003 190,000 197,412
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.50 2004 450,000 468,369
Appleton Correctional Facility Revenue Bonds Series 1990A 9.875 2020 4,000,000 (e) 2,600,000
Bass Brook Pollution Control Revenue Bonds Minnesota Power & Light
Series 1992 6.00 2022 6,300,000 5,570,397
Becker Pollution Control Revenue Bonds Northern States Power
Sherburne County Generating Station Units 1 & 2 Series 1987A 7.25 2005 2,000,000 2,038,320
Becker Solid Waste Disposal Facility
Revenue Bonds AMT Liberty Paper Series 1994B 9.00 2015 3,825,000 3,712,813
Bemidji Hospital Facilities 1st Mortgage Revenue Bonds
North Country Health Services Series 1991 7.00 2021 1,755,000 1,748,436
Bloomington Community Development Refunding Revenue Bonds
Note 24th Avenue Motel 8.50 2005 1,843,781 1,908,313
Braham Independent School District #314 Refunding Bonds 5.20 2019 3,340,000 2,748,386
Brainerd Hospital Refunding Revenue Bonds Evangelical Lutheran
Good Samaritan Society Series 1992A (C.G.I.C.) 6.65 2017 1,695,000 1,697,644
Brainerd Hospital Revenue Bonds Evangelical Lutheran
Good Samaritan Society Series 1992B (C.G.I.C.) 6.65 2017 2,865,000 2,869,469
Burnsville Multi-family Housing Refunding Revenue Bonds
FHA-Summit Park Apartments Series 1993 6.00 2033 4,000,000 3,411,040
Chaska Advance Refunded Certificate of Participation
Lease Purchase Agreement Bonds Series 1986C 7.25 2001 800,000 828,008
Columbia Heights Multi-family Housing Revenue Bonds
Crestview Lutheran Home Royce Place Series 1991 10.00 2032 560,000 596,400
Columbia Heights Multi-family Housing Revenue Bonds
Crestview Lutheran Home Royce Place Series 1991 (FHA Insured) 7.75 2032 2,750,000 2,809,455
Duluth Economic Development Authority Health Care Facility
Pre-Refunded Revenue Bonds Benedictine Health System
St. Mary's Medical Center Series 1990 8.375 2020 2,000,000 2,264,540
Duluth Hospital Facilities St. Lukes Hospital
Pre-Refunded Revenue Bonds Series 1988 9.00 2018 2,500,000 2,801,300
Duluth Housing and Redevelopment Authority 1st Mortgage Revenue Bonds
Lakeshore Lutheran Home 8.25 2009 125,000 122,931
Duluth Recreation Revenue Certificate of Participation 9.00 2003-07 1,430,000 1,531,216
See accompanying notes to investments in securities.
Eden Prairie Housing Development Refunding Revenue Bonds Eden Commons
Series 1990 (FHA Insured) 8.25 2025 6,360,000 6,254,615
Edina Hospital System Revenue Bonds Fairview Hospital & Health Care Services
Series 1989A 7.125 2019 2,500,000 2,555,250
Edina Multi-family Housing Revenue Bonds Walker Assisted Living
Series 1991 9.00 2031 6,700,000 7,065,351
Faribault Single Family Mortgage Refunding Revenue Bonds Series 1991A 7.50 2011 3,160,000 3,234,513
Hennepin County Lease Revenue Certificate of Participation Series 1991 6.80 2017 7,250,000 7,340,190
Hennepin County Solid Waste Resource Recovery General Obligation
Revenue Bonds Series 1987A 8.20 2009 1,760,000 1,826,651
Hopkins Revenue Bonds Blake School 6.70 2024 3,120,000 3,068,302
Hubbard County Solid Waste Disposal Revenue Bonds AMT Potlatch Series 1989 7.375 2013 5,610,000 5,802,367
International Falls Solid Waste Disposal Revenue Bonds AMT Boise Cascade
Series 1990 7.75 2015 4,000,000 4,021,320
Maplewood Care Institute Series 1994 7.75 2024 3,830,000 3,507,016
Maplewood Multi-family Housing Revenue Bonds Maplewood (FHA Insured) 7.75 2021 2,115,000 2,125,533
Minneapolis & St. Paul Housing Board Multi-family Mortgage Revenue Bonds AMT
GNMA Collateral Mortgage Revenue Loan Riverside Plaza Series 1988 8.25 2030 3,945,000 4,157,754
Minneapolis Community Development Agency & St. Paul Housing
& Redevelopment Authority Home Ownership Mortgage
Revenue Bonds Family Housing Mortgage Phase II 7.875 2017 1,515,000 1,563,071
Minneapolis General Obligation Sales Tax Refunding Bonds Series 1992 6.25 2012 5,260,000 5,156,062
Minneapolis Health Care Facilities Revenue Bonds Fairview Hospital &
Healthcare Services Series 1993A (MBIA Insured) 5.25 2019 3,750,000 3,060,713
Minneapolis Hospital Facility Pre-Refunded Revenue Bonds Lifespan Incorporated
Series 1987A 8.125 2017 3,630,000 3,901,633
Minneapolis Hospital Facility Pre-Refunded Revenue Bonds Lifespan Incorporated
Series 1989A 7.00 2014 5,000,000 5,370,900
Minneapolis Housing & Redevelopment Authority of St. Paul
Health Care System Revenue Bonds Healthspan Series 1993 (AMBAC Insured) 4.75 2018 3,000,000 2,267,100
Minneapolis Nursing Home Revenue Bonds Walker Cityview & Southview
Series 1992 8.50 2022 5,565,000 5,568,729
Minneapolis St. Paul Housing & Redevelopment Authority Health Care System
Revenue Bonds Healthspan Series 1993A (AMBAC Insured) 5.00 2007-13 6,690,000 5,699,915
Minneapolis Water & Sewer Revenue Bonds Series 1992 5.00 1995 5,000,000 4,975,900
Minnetonka Multi-family Housing Refunding Revenue Bonds Cedar Hill West
(FHA Insured) 7.75 2026 5,605,000 5,481,802
Minnetonka Multi-family Housing Revenue Bonds The Cedar Hills Series 1985 7.50 2017 500,000 518,040
Montevideo Independent School District #129 General Obligation
Unlimited Tax Bonds School Credit Enhancement Program 4.90 2014 1,875,000 1,530,037
Northern Municipal Power Agency Electric System Refunding Revenue Bonds
Series 1989A 7.25 2016 5,475,000 5,592,055
Northern Municipal Power Agency Electric System Pre-Refunded Revenue Bonds
Series 1989A (AMBAC Insured) 7.40 2018 1,000,000 1,074,160
Northern Municipal Power Agency Electric System Pre-Refunded Revenue Bonds
Series 1989B (AMBAC Insured) 7.40 2018 1,800,000 1,876,698
Norwood-Young America Independent School District #108 General Obligation
School Building Bonds Unlimited Tax School Credit
Enhancement Program Series 1994A 5.00 2014 1,345,000 1,110,123
Osseo Area Schools Independent School District #279
General Obligation School Building Bonds Series 1993A Inverse Floater 4.775 2012 5,000,000 (f) 3,825,000
Owatanna Public Utilities Pre-Refunded Revenue Bonds Series 1991 6.75 2016 1,000,000 1,046,020
Plymouth Multi-family Housing Revenue Bonds AMT Harbor Lane Apartments
Series 1993 (Asset Guaranty Insured) 5.90 2013 2,325,000 2,100,777
Port Authority St. Paul General Obligation Bonds Series 1994 5.125 2017 2,885,000 2,378,279
Port Authority St. Paul Unlimited Tax General Obligation Bonds 5.125 2024 2,270,000 1,811,801
Red Wing Industrial Development Refunding Revenue Bonds K mart Series 1993 5.50 2008 400,000 346,564
Richfield Independent School District #280 Unlimited Tax General Obligation
School Building Bonds Series 1993C Inverse Floater
(FGIC Insured) 4.575 2010 3,300,000 (f) 2,532,750
Richfield Independent School District #280 Unlimited Tax General Obligation
School Building Bonds Series 1993C Trust Inverse Floater
(FGIC Insured) 4.675 2012 2,510,000 (f) 1,888,775
Robbinsdale Hospital Pre-Refunded Revenue Bonds
North Memorial Medical Center Series 1989 (AMBAC Insured) 7.375 2019 2,200,000 2,379,234
Rochester Health Care Facility Revenue Bonds Mayo Foundation/Mayo Medical
Center Series 1992I 5.75 2021 4,240,000 3,665,522
Rochester Multi-family Housing Development Revenue Bonds Civic Square
Series 1991 (FHA Insured) 7.45 2031 4,450,000 4,485,911
Roseville Health Care Facility Refunding Revenue Bonds
Presbyterian Homes of Minnesota Series 1987 7.50 2007 2,250,000 2,263,635
Rush City Independent School District #139 Unlimited Tax School Building
Refunding Bonds School Credit Enhancement Program 5.25 2018 2,595,000 2,196,097
St. Cloud Hospital Facilities Revenue Bonds St. Cloud Hospital Series 1990B
(AMBAC Insured) 7.00 2020 5,000,000 5,387,200
St. Cloud Hospital Facility Refunding Revenue Bonds Series C (AMBAC Insured) 5.30 2020 1,515,000 1,241,921
St. Cloud Hospital Refunding Revenue Bonds Series 1993C (AMBAC Insured) 5.25 2013 1,000,000 853,000
St. Cloud Hydro Electric Generation Facility Gross Revenue Bonds Series 1986 7.375 2018 1,100,000 1,122,715
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993 (AMBAC Insured) 5.20 2023 6,000,000 4,804,440
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993A (AMBAC Insured) 5.20 2016 3,000,000 2,494,170
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993B
Inverse Floater (AMBAC Insured) 4.175 2013 7,000,000 (f) 4,550,000
St. Louis Park Health Care Facilities Pre-Refunded Revenue Bonds
Park Nicollet Medical Center Series 1990A 9.25 2020 4,000,000 4,672,600
St. Louis Park Health Care Facilities Pre-Refunded Revenue Bonds
Park Nicollet Medical Center Series 1991A 8.625 2021 2,000,000 2,286,140
St. Louis Park Multi-family Rental Housing Revenue Bonds
Mortgage Loan-Community Housing & Services Series 1985 (FHA Insured) 7.375 2028 2,250,000 2,276,258
St. Paul & Minneapolis Housing & Redevelopment Authority Health Care
Facility Revenue Bonds Group Health Plan Series 1992 6.75 2013 10,500,000 (g) 10,193,925
St. Paul Housing & Redevelopment Authority Hospital Facility Revenue Bonds
St. Paul Ramsey Medical Center (AMBAC Insured) 5.55 2023 5,000,000 4,223,750
St. Paul Housing & Development Bonds Highland Retirement (FHA Insured) 7.013 2026 5,210,000 4,793,200
St. Paul Housing & Redevelopment Authority Commercial Development
Refunding Revenue Bonds Beverly Enterprises Series 1992 7.75 2002 2,700,000 2,754,000
St. Paul Housing & Redevelopment Authority Health Care Facility Revenue Bonds
Lyngblomsten Care Center Series 1993A 7.125 2017 1,945,000 1,801,829
St. Paul Housing & Redevelopment Authority Health Care Facility Revenue Bonds
Lyngblomsten Care Center Series 1993A 9.60 2006 1,060,000 1,071,660
St. Paul Housing & Redevelopment Authority Health Care Facility
Multi-family Rental Housing Revenue Bonds Lynblomsten 1993B 7.00 2024 1,930,000 1,721,579
St. Paul Housing & Redevelopment Authority Sales Tax Revenue Bonds
Civic Center Series 1993 5.55 2023 5,000,000 4,159,500
St. Paul Sewer Refunding Revenue Bonds Series 1993 (AMBAC Insured) 5.60 2008 7,700,000 7,259,252
Southern Minnesota Municipal Power Agency Bonds Escrowed to Maturity 5.75 2018 370,000 330,247
Southern Minnesota Municipal Power Agency Pre-Refunded Bonds Series 1988A 8.125 2018 1,315,000 1,431,996
Southern Minnesota Municipal Power Agency Pre-Refunded Bonds Series 1988B 8.125 2018 1,000,000 1,088,970
Southern Minnesota Municipal Power Agency Power Supply System
Revenue Bonds Zero Coupon Series 1994A (MBIA Insured) 6.67 2019 19,500,000 (h) 4,019,145
6.88 2022 12,000,000 (h) 1,988,160
Southern Minnesota Municipal Power Agency Series A
(Secondary MBIA Insured) 5.75 2018 3,000,000 2,671,260
Southern Minnesota Municipal Power Agency Un-Refunded Balance
Power Revenue Bonds Series A 5.75 2018 1,895,000 1,655,320
Spring Park Health Care Facility Revenue Bonds Twin Birch Health Care Center
Series 1991 8.25 2011 1,780,000 1,948,833
State General Obligation Various Purpose Pre-Refunded Bonds Series 1990 7.00 2009 7,850,000 8,354,677
State General Obligation Various Purpose Pre-Refunded Bonds Series 1991 6.70 2011 8,000,000 8,424,560
State Higher Education Facility Authority Mortgage
Pre-Refunded Revenue Bonds St. Mary's College Series 2-M 8.375 2017 1,000,000 1,104,940
State Housing Facility Authority Housing Development Bonds Series A 7.125 2020 845,000 854,388
State Housing Facility Authority Housing Development Bonds Series 1976A 7.25 2018 205,000 207,837
State Housing Facility Authority Housing Development Bonds Series 1978B 7.10 2021 470,000 474,733
State Housing Facility Authority Housing Development Bonds Series 1979A 7.00 2022 700,000 697,410
State Housing Facility Authority Housing Finance Agency Housing Development
Single Family Mortgage Bonds Series B 7.25 2016 440,000 448,395
State Housing Finance Agency Single Family Mortgage Bonds AMT Series 1989A 8.00 2029 1,625,000 1,655,062
State Housing Finance Agency Single Family Mortgage Bonds AMT Series 1990A 7.95 2022 3,670,000 3,831,627
State Housing Finance Agency Single Family Mortgage Bonds AMT Series 1991A 7.45 2022 3,570,000 3,656,180
State Housing Finance Agency Single Family Mortgage Bonds Series 1992A 6.95 2016 3,330,000 3,336,560
State Housing Finance Agency Single Family Mortgage Revenue Bonds
AMT Series L 6.70 2020 1,100,000 1,053,470
State Public Facilities Authority Water Pollution Control Revenue Bonds
Series 1989A 7.00 2009 6,250,000 6,512,000
State Public Facilities Authority Water Pollution Control Revenue Bonds
Series 1992A 6.50 2014 9,050,000 9,019,411
State University Board of Regents General Obligation Bonds
Series 1993A Inverse Floater 5.171 2003 5,000,000 (f) 4,075,000
State University Board of Regents General Obligation Pre-Refunded Bonds
Series 1989A 6.00 2011 4,625,000 4,400,456
State University Board State University System Pre-Refunded Revenue Bonds
Series 1989A (MBIA Insured) 7.40 2019 2,250,000 2,410,897
Washington County General Obligation Capital Improvement Bonds
Series 1989A 7.00 2009-10 4,425,000 4,629,966
Washington County Housing & Redevelopment Authority Multi-family Housing
Revenue Bonds AMT Orleans Homes Series 1987-2 9.00 2017 2,000,000 2,142,840
Western Minnesota Municipal Power Agency Revenue Bonds
Escrowed to Maturity (AMBAC Insured) 6.75 2016 5,935,000 6,015,360
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 5.50 2015 5,000,000 4,324,400
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 6.875 2007 2,500,000 2,543,075
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 7.00 2013 7,300,000 7,355,407
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series A (Secondary MBIA Insured) 5.50 2015 6,250,000 5,473,750
White Bear Lake Industrial Development Revenue Bonds AMT Taylor Series 1988A 8.75 2008 2,250,000 2,397,195
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $370,458,586) $367,298,692
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $370,458,586)(i) $367,298,692
_____________________________________________________________________________________________________________________________
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 12-30-94 06-30-94
_______________________________________________________________________________________________________
AAA 41% 43%
AA 23 24
A 21 20
BBB and below 14 13
Non-rated 1 --
Total 100% 100%
(c) The following abbreviations are used in portfolio descriptions to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
CGIC -- Capital Guaranty Insurance Company
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
MBIA -- Municipal Bond Investors Assurance
(d) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(e) Presently non-income producing. Item identified is in default as to payment of interest
and/or principal.
(f) Inverse floaters represent securities which 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 Dec. 31, 1994. Inverse floaters in the aggregate represent 4.5% of the fund's net
assets as of Dec. 31, 1994.
(g) Partially pledged as initial deposit on the following open interest rate futures contracts (see Note 5
to the financial statements):
Type of security Notional amount
_____________________________________________________
Purchase contracts
Municipal Bonds March 1995 $70,000,000
Sales contracts
U.S. Treasury Bonds March 1995 70,000,000
_____________________________________________________
(h) For zero coupon bonds, the interest rate disclosed represents the annualized
effective yield on the date of acquisition.
(i) At Dec. 31, 1994, the cost of securities for federal income tax purposes was approximately $370,333,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $11,091,000
Unrealized depreciation (14,125,000)
______________________________________________________________________________________________________
Net unrealized depreciation $(3,034,000)
______________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS New York Tax-Exempt Fund (Percentages represent value of
Dec. 31, 1994 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (97.3%)
_____________________________________________________________________________________________________________________________
Name of issuer and title of issue (b,c,d) Coupon Maturity Principal Value(a)
rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Battery Park City Authority Senior Refunding Revenue Bonds Series 1993A 5.25 % 2017 $4,000,000 $ 3,192,000
Broome County Certificates of Partication Public Safety Facility
Series 1994 (MBIA Insured) 5.25 2022 1,250,000 1,008,362
Buffalo Municipal Water Finance Authority Water System Revenue Bonds
(FSA Insured) 5.75 2019 700,000 617,435
Erie County Water Authority Fourth Resolution Water Refunding Revenue Bonds
Zero Coupon Series 1992 (AMBAC Insured) 7.30 2017 1,215,000 (e) 234,191
Erie County Water Authority Water Works System Revenue Bonds
Escrowed to Maturity Series 1990A (AMBAC Insured) 6.00 2008 1,765,000 1,713,091
Fallsburg Sullivan County Unlimited Tax General Obligation Improvement
Pre-Refunded Bonds Series 1991 7.05 2011-14 1,300,000 1,409,330
Great Neck North Water Authority Water System Pre-Refunded Revenue Bonds
Series 1989A 6.00 2020 1,415,000 1,435,079
Metropolitan Transportation Authority Commuter Facilities
1987 Service Contract Refunding Bonds Series 5 6.50 2016 1,775,000 1,651,070
Metropolitan Transportation Authority Service Transit Facilities
Pre-Refunded Revenue Bonds Series G 8.50 2011 1,000,000 1,067,500
Metropolitan Transportation Authority Transit Facilities
Pre-Refunded Revenue Bonds Series F 8.375 2016 725,000 772,524
Metropolitan Transportation Authority Transit Facilities
Revenue Bonds Series 1994 (MBIA Insured) 6.00 2024 1,500,000 1,371,060
Monroe County Utility General Obligation Pre-Refunded Bonds
Water Improvement System 7.10 2008-09 1,000,000 1,070,700
Municipal Assistance New York City Series 57 7.25 2008 500,000 520,175
Municipal Assistance New York City Series 59 7.75 2006 660,000 703,527
Municipal Assistance New York City Series 62 6.75 2006 2,200,000 2,286,636
New York & New Jersey Port Authority Consolidated Revenue Bonds
AMT Series 61 8.125 2023 750,000 780,360
New York & New Jersey Port Authority Consolidated Revenue Bonds
AMT Series 62 8.00 2023 1,000,000 1,041,170
New York City General Obligation Bonds Series 1995B 7.00 2016 1,500,000 1,473,615
New York City General Obligation Unlimited Tax Bonds Series E
(CGIC Insured) 6.00 2016 1,500,000 (f) 1,383,045
New York City Municipal Water Finance Authority Water & Sewer System
Revenue Bonds Series B Inverse Floater (MBIA Insured) 6.04 2009 2,000,000 (g) 1,495,000
New York City Water Finance Authority Water & Sewer System
Pre-Refunded Revenue Bonds Series A (FGIC Insured) 6.75 2014 1,185,000 1,251,561
New York City Water Finance Authority Water & Sewer System
Revenue Bonds Series A (FGIC Insured) 6.75 2014 565,000 568,633
New York City Water Finance Authority Water & Sewer System
Revenue Pre-Refunded Bonds Series 1988A 7.00 2018 1,500,000 1,577,010
See accompanying notes to investments in securities.
New York City Water Finance Authority Water & Sewer System Revenue Bonds
Series 1993A (AMBAC Insured) 5.75 2018 4,000,000 3,544,920
State Certificate of Participation City University John J. College 7.25 2007 360,000 365,411
State Dormitory Authority City University System
Consolidated 3rd Resolution Revenue Bonds Series 1994-2 (MBIA Insured) 6.25 2019 1,500,000 1,420,995
State Dormitory Authority City University System Pre-Refunded Revenue Bonds 8.125 2017 3,400,000 3,689,306
State Dormitory Authority City University System Pre-Refunded Revenue Bonds
Series 1986A 7.625 2013 1,000,000 1,052,630
State Dormitory Authority City University System Revenue Bonds
Series 1993A 5.75 2013 3,000,000 2,603,100
State Dormitory Authority State University Education Facility
Refunding Revenue Bonds Series 1990B 7.50 2011 1,900,000 2,002,904
State Dormitory Authority State University Education Facility
Pre-Refunded Revenue Bonds Series 1990A 7.70 2012 1,750,000 1,947,750
State Dormitory Authority Upstate Community Colleges Series A
(Connie Lee Insured) 5.625 2012 1,500,000 1,339,530
State Energy Research & Development Authority Electric Facility
Revenue Bonds AMT Consolidated Edison Series 1986A 7.50 2021 1,750,000 1,767,815
State Energy Research & Development Authority Electric Facility
Revenue Bonds AMT Consolidated Edison Series 1989A 7.75 2024 1,000,000 1,021,490
State Energy Research & Development Authority Electric Facility
Revenue Bonds AMT Consolidated Edison Series 1990A 7.50 2025 5,000,000 5,061,250
State Energy Research & Development Authority Gas Facility Revenue Bonds
Brooklyn Union Gas Series I 7.125 2020 2,000,000 2,010,780
State Energy Research & Development Authority Gas Facility Revenue Bonds
Brooklyn Union Gas Series II 7.00 2020 1,500,000 1,496,295
State Energy Research & Development Authority Pollution Control
Refunding Revenue Bonds AMT Rochester Gas & Electric (MBIA Insured) 6.50 2032 2,500,000 2,385,525
State Environmental Facility State Water & Pollution Control
Revolving Fund Revenue Bonds New York City Municipal Water
Finance Authority Series 1990A 7.50 2012 3,000,000 3,162,240
State Housing Finance Authority State University Construction Program
Pre-Refunded Bonds Series 1986A 8.00 2016 400,000 422,684
State Housing Finance Authority State University Construction Program
Pre-Refunded Bonds Series A 8.30 2018 500,000 549,345
State Local Government Assistance Bonds Series C 5.50 2022 1,500,000 1,238,640
State Local Government Assistance Bonds Series 1992A 6.875 2019 2,000,000 2,008,500
State Local Government Assistance Pre-Refunded Bonds Series 1991A 7.00 2016 4,000,000 4,334,760
State Medical Care Facility Finance Agency Hospital & Nursing Home
Mortgage Revenue Bonds Montefiore Hospital Series 1989A (FHA Insured) 7.25 2024 1,400,000 1,436,582
State Medical Care Facility Finance Agency Mental Health Services Facility
Improving Refunding Revenue Bonds Series 1993F 5.375 2014 1,000,000 814,640
State Medical Care Facility Finance Agency Mental Health Services Facility
Improving Refunding Revenue Bonds Series 1994A 5.25 2023 1,500,000 1,139,925
State Medical Care Facility Finance Agency Pre-Refunded Bonds
Presbyterian Hospital Series 1985B 8.00 2025 1,320,000 1,433,124
State Medical Care Facility Finance Agency Revenue Bonds
Buffalo General Hospital Series 1988C (FHA Insured) 7.60 2008 1,500,000 1,632,360
State Medical Care Facility Finance Agency Revenue Bonds
Buffalo General Hospital Series 1988C (FHA Insured) 7.70 2022 1,950,000 2,128,406
State Medical Care Facility Finance Agency Revenue Bonds
North Shore University Glen Cove Series A (MBIA Insured) 5.125 2012 1,000,000 839,230
State Medical Care Facility Finance Agency Secured Hospital Revenue Bonds
Series 1987A 7.10 2027 550,000 529,793
State Mortgage Agency Homeowner Mortgage Revenue Bonds Series TT 7.50 2015 4,000,000 4,143,280
State Mortgage Agency Homeowner Mortgage Revenue Bonds Series 27 6.90 2015 3,000,000 2,999,550
State Mortgage Agency Revenue Bonds AMT Series 9 7.30 2017 970,000 987,896
State Thruway Authority Local Highway & Bridge Service Contract Bonds
Series 1991 6.00 2011 2,500,000 2,289,675
State Urban Development Correction Facility
Pre-Refunded Revenue Bonds Series 1986 8.00 2015 750,000 785,805
State Urban Development Correction Facility Pre-Refunded Revenue Bonds
Series 1 (FSA Insured) 7.50 2020 4,500,000 4,942,170
State Urban Development Correctional Capital Facilities
Refunding Revenue Bonds Series 1993A 5.25 2021 2,500,000 1,935,250
Suffolk County General Obligation Public Improvement Refunding Bonds
Series G (MBIA Insured) 5.40 2014 1,000,000 867,220
Triborough Bridge & Tunnel Authority General Purpose
Pre-Refunded Revenue Bonds Series S 7.00 2021 3,000,000 3,226,380
Triborough Bridge & Tunnel Authority Special Obligation Refunding Bonds
Series 1991B (FGIC Insured) 6.875 2015 2,000,000 2,036,220
United Nations Development Senior Lien Pre-Refunded Revenue Bonds
1986 Phase II & III 7.875 2006 250,000 264,830
United Nations Development Senior Lien Refunding Revenue Bonds
Series 1992A 6.00 2026 4,500,000 3,940,920
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $109,313,325) $110,422,200
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $109,313,325)(h) $110,422,200
_____________________________________________________________________________________________________________________________
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 12-31-94 06-30-94
_______________________________________________________________________________________________________
AAA 51% 46%
AA 26 30
A 11 11
BBB and below 12 13
Non-rated - -
Total 100% 100%
_______________________________________________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
CGIC -- Capital Guaranty Insurance Company
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
(d) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(e) For zero coupon bonds, the interest rate disclosed represents the annualized yield on the date of
acquisition.
(f) Partially pledged as initial deposit on the following open interest rate futures contracts
(see Note 5 to the financial statements):
Type of security Notional amount
Purchase contracts
___________________________________________________________
Municipal Bonds March 1995 $22,500,000
Sale contracts
U.S. Treasury Bonds March 1995 22,500,000
___________________________________________________________
(g) 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 Dec. 31, 1994. Inverse floaters in the aggregate represent
1.3% of the fund's net assets as of Dec. 31, 1994.
(h) At Dec. 31, 1994, the cost of securities for federal income tax purposes was approximately $109,283,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $4,960,000
Unrealized depreciation (3,821,000)
______________________________________________________________________________________________________
Net unrealized appreciation $1,139,000
______________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Ohio Tax-Exempt Fund
Dec. 31, 1994 (Unaudited) (Percentages represent value of
investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (97.1%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Akron Bath & Copley Joint Township Hospital Refunding Revenue Bonds
Childrens Hospital Medical Center (AMBAC Insured) 5.00 % 2015 $1,000,000 $ 807,420
Akron Bath & Copley Joint Township Hospital Refunding Revenue Bonds
Childrens Hospital Medical Center Series 1993 (AMBAC Insured) 5.25 2020 1,500,000 1,220,115
Barberton Limited Tax Various Purpose General Obligation Bonds
Series 1989-1 7.35 2009 700,000 713,958
Bedford Sewer System Mortgage Revenue Bonds Series 1986 (AMBAC Insured) 7.80 2010 300,000 319,224
Bellefontaine Hospital Facility Refunding Revenue Bonds
Mary Rutan Health Association of Logan County Series 1993 6.00 2013 1,000,000 826,840
Butler County Hospital Facility Improvement Refunding Revenue Bonds 7.50 2010 1,750,000 1,687,595
Clermont County Hospital Facility Revenue Bonds Mercy Health System
Province of Cincinnati Series 1989A (AMBAC Insured) 7.50 2019 750,000 818,992
Cleveland Airport Systems Revenue Bonds AMT Series 1990A (MBIA Insured) 7.40 2020 500,000 518,740
Cleveland Airport Systems Revenue Bonds AMT Series A (FGIC Insured) 6.00 2024 1,500,000 1,364,685
Cleveland General Obligation Pre-Refunded Bonds 7.375 2003 125,000 133,624
Cleveland Public Power System 1st Mortgage Pre-Refunded Revenue Bonds 8.375 2017 100,000 108,845
Cleveland School District Unlimited Tax Improvement
General Obligation Bonds Series A (FGIC Insured) 5.875 2011 1,000,000 942,220
Cleveland Waterworks Improvement 1st Mortgage Refunding Revenue Bonds
Series F 1992B (AMBAC Insured) 6.25 2016 1,000,000 (f) 966,020
Cleveland Waterworks Improvement 1st Mortgage Revenue Bonds Series 1987E 6.00 2017 200,000 182,936
Cleveland Waterworks Improvement 1st Mortgage Pre-Refunded Revenue Bonds
Series 1987E 7.875 2016 650,000 692,562
Coshocton County Solid Waste Disposal Refunding Revenue Bonds
Stone Container Series 1992 7.875 2013 1,000,000 971,920
Cuyahoga County Hospital Improvement Revenue Bonds
Cleveland Clinic Foundation 7.00 2013 500,000 502,170
Cuyahoga County Hospital Improvement Pre-Refunded Revenue Bonds
Cleveland Clinic Foundation Series 1987A 7.875 2010 275,000 297,209
Cuyahoga County Hospital Improvement Revenue Bonds
Mount Sinai Medical Center Series 1991 (AMBAC Insured) 6.625 2021 600,000 599,562
Cuyahoga County Hospital Improvement Revenue Bonds
University Hospitals Health System Series 1992 (AMBAC Insured) 6.50 2011 500,000 499,485
Cuyahoga County Hospital Refunding Revenue Bonds
Cleveland Clinic Foundation Series 1992 5.50 2011 1,500,000 1,347,525
Cuyahoga County Hospital Refunding Revenue Bonds
Mount Sinai Medical Center Series 1987A 8.125 2014 400,000 431,356
Cuyahoga County Hospital Revenue Bonds Meridia Health Series 1991 7.00 2023 1,000,000 976,950
Cuyahoga County Limited Tax General Obligation Bonds 5.60 2013 500,000 440,400
Cuyahoga Hospital Revenue Bonds Metrohealth System Series 1989
(MBIA Insured) 6.00 2019 1,000,000 917,850
Dover Limited Tax Improvement General Obligation
Municipal Sewer System Bonds 7.10 2009 1,000,000 1,025,650
See accompanying notes to investments in securities.
Dover Waterworks System Revenue Bonds Series 1994 (AMBAC Insured) 6.00 2020 1,000,000 930,590
Elyria Limited Tax Improvement General Obligation
Recreation Facility Bonds 7.10 2009 715,000 733,340
Erie County Hospital Improvement Refunding Revenue Bonds
Firelands Community Hospital Series 1992 6.75 2015 2,000,000 1,879,240
Fairfield Union Local School District School Facilities
Unlimited Tax Improvement General Obligation Bonds (AMBAC Insured) 5.90 2018 625,000 573,388
Findlay Water System Limited Tax Improvement General Obligation Bonds 5.55 2018 365,000 315,663
Franklin County Convention Facilities Authority Tax & Lease
Revenue Anticipation Bonds (MBIA Insured) 5.80 2013 1,000,000 922,310
Franklin County Convention Facilities Authority Tax & Lease
Revenue Anticipation Pre-Refunded Bonds (MBIA Insured) 7.00 2019 1,500,000 1,622,910
Franklin County Hospital Refunding Revenue Bonds
Riverside United Methodist Hospital Series 1993A 5.75 2012 1,000,000 879,010
Franklin County Limited Tax General Obligation Refunding Bonds Series 1993 5.50 2013 1,000,000 886,000
Highland Heights Limited Tax Improvement General Obligation Street Bonds 7.75 2008 400,000 432,900
Kettering School District Improvement General Obligation Bonds
(FGIC Insured) 5.25 2022 1,000,000 816,820
Lake County Water System Limited Tax Improvement General Obligation
Pre-Refunded Bonds Series 1987-2 8.125 2010 700,000 762,972
Lakota Local School District Butler County School Unlimited Tax
Improvement Bonds 7.00 2012 500,000 529,470
Lakota Local School District Butler County School Unlimited Tax Improvement
Pre-Refunded Bonds 7.90 2011 200,000 216,398
Lokata Local School District Unlimited Tax Improvement
General Obligation Bonds (AMBAC Insured) 6.25 2014 2,000,000 1,955,360
Lima Limited Tax Improvement General Obligation
Pre-Refunded Bonds Sanitary Sewer System 8.25 2012 200,000 218,656
Lucas County Hospital Refunding Revenue Bonds St. Vincent's Medical Center
Series B (MBIA Insured) 5.25 2020 2,000,000 1,638,580
Lucas County Hospital Pre-Refunded Revenue Bonds Toledo Hospital
(MBIA Insured) 7.00 2014 100,000 101,873
Marietta Sewer System Improvement Bonds (BIG Insured) 7.50 2007 200,000 212,144
Marion County Health Care Facilities Improvement Refunding Revenue
Bonds United Church Homes Series 1993 6.375 2010 1,000,000 874,700
Marysville Sewer System 1st Mortgage Revenue Bonds AMT Series 1988
(BIG Insured) 7.85 2008 400,000 427,380
Marysville Water System Mortgage Revenue Bonds Series 1991 (MBIA Insured) 7.05 2021 1,000,000 1,079,420
Mason Waterworks System Refunding Revenue Bonds Series 1993
(AMBAC Insured) 6.00 2017 600,000 560,406
Medina County Hospital Revenue Bonds Medina County Community Hospital
Series 1987 (AMBAC Insured) 6.875 2016 100,000 101,089
Miami County Hospital Facility Refunding Revenue Bonds
Upper Valley Medical Center Series 1987A 8.375 2013 75,000 79,834
Miami State University General Receipts Bonds Series 1993 (FGIC Insured) 5.60 2013 500,000 450,370
Montgomery County Health Facilities Revenue Bonds Friendship Village Dayton
Series 1990A 9.25 2016 1,000,000 1,008,580
Montgomery County Industrial Development Revenue Bonds AMT SPM System
Series 1991 10.00 2005 720,000 (e) 360,000
Montgomery County Sewer System Refunding Revenue Bonds
Greater Moraine - Beavercreek District Series 1993 (FGIC Insured) 5.60 2011 1,000,000 911,000
Montgomery County Water Revenue Bonds Greater Moraine - Beavercreek
District (FGIC Insured) 6.25 2017 1,000,000 966,880
Newark Water System Limited Tax Improvement General Obligation Bonds
(AMBAC Insured) 6.00 2018 500,000 466,965
Parma Hospital Improvement Revenue Bonds Parma Community General Hospital
Series 1989B (MBIA Insured) 7.125 2013 500,000 518,820
Pickerington Local School District Unlimited Tax General Obligation
Pre-Refunded Bonds (AMBAC Insured) 7.00 2013 1,000,000 1,081,940
Pleasant Local School District Unlimited Tax Improvement
General Obligation Bonds Series 1993 (AMBAC Insured) 5.10 2018 780,000 633,773
Rural Loraine County Water Authority Water Resource Improvement
Pre-Refunded Revenue Bonds Series 1991 (AMBAC Insured) 7.00 2011 1,000,000 1,075,220
South Euclid Lyndhurst School District General Obligation Bonds
(FGIC Insured) 5.25 2018 1,000,000 832,400
Southwest Local School District Hamilton & Butler Counties School
Unlimited Tax Improvement Bonds (AMBAC Insured) 7.65 2010 500,000 555,380
Stark County Hospital Pre-Refunded Revenue Bonds
Timkin Mercy Medical Center 7.50 2007 125,000 132,226
State Air Quality Development Authority Refunding Revenue Bonds
AMT Series 1994 (AMBAC Insured) 6.375 2029 2,000,000 1,887,860
State Air Quality Development Authority Revenue Bonds
Cleveland Electric Illuminating Series A 7.00 2009 350,000 331,565
State Building Authority Local Jail Grant Bonds Series 1989A
(MBIA Insured) 7.35 2009 500,000 545,090
State Building Authority State Correctional Facility Revenue Bonds Series B 7.125 2009 75,000 77,790
State Building Authority State Facility Pre-Refunded Bonds
Columbus State Office Building Series 1985C 7.35 2005 1,000,000 1,095,060
State Higher Educational Facility Pre-Refunded Revenue Bonds
Oberlin College Series 1989 7.375 2014 500,000 543,980
State Higher Educational Facility Revenue Bonds University of Dayton
Series 1994 (FGIC Insured) 5.80 2019 900,000 806,436
State Housing Finance Agency Mortgage Revenue Bonds AMT
Aristocrat South Board & Care Series 1991A (FHA Insured) 7.30 2031 1,500,000 1,512,165
State Housing Finance Agency Single Family Mortgage Revenue Bonds AMT
Series 1990A (GNMA Insured) 7.80 2030 675,000 702,614
State Housing Finance Agency Single Family Mortgage Revenue Bonds AMT
Series 1990C (GNMA Insured) 7.85 2021 990,000 1,032,570
State Municipal Electric Generation Agency Joint Venture #5 Revenue Bonds
(AMBAC Insured) 5.375 2024 1,250,000 1,032,088
State Turnpike Revenue Bonds Series A 5.75 2024 1,750,000 1,536,080
State Water Development Authority Pollution Control Revenue Bonds
Phillip Morris 7.25 2008 150,000 151,488
State Water Development Authority Bonds AMT Toledo Edison Series 1994 8.00 2023 1,000,000 976,750
State Water Development Authority Water Development Pre-Refunded Bonds
Pure Water Series 1987I 7.75 2006-14 200,000 214,417
State Water Development Authority Water Development Pre-Refunded Bonds
Pure Water Series 1988I 7.00 2014 500,000 522,405
State Water Development Authority Water Development Refunding Revenue Bonds
Pure Water (AMBAC Insured) 5.50 2018 750,000 646,575
Summit County Industrial Development Revenue Bonds Century Products 7.75 2005 100,000 104,852
Summit County Limited Tax General Obligation Pre-Refunded Bonds
Human Services Facility (AMBAC Insured) 8.00 2007 100,000 108,662
Sycamore Board of Education Community School District
Hamilton County School Improvement Bonds 6.50 2009 500,000 504,345
Toledo General Obligation Improvement Bonds (AMBAC Insured) 6.10 2014 1,000,000 958,820
Toledo Sewerage System Mortgage Revenue Bonds Series 1994 (AMBAC Insured) 6.45 2024 500,000 493,430
University of Cincinnati General Receipt Pre-Refunded Bonds Series I-1 7.10 2010 750,000 805,792
University of Toledo General Receipt Bonds Series A (FGIC Insured) 5.90 2020 1,000,000 907,400
University of Toledo General Receipt Pre-Refunded Bonds Series 1990
(MBIA Insured) 7.125 2020 500,000 541,115
Warren County Various Purpose Limited Tax General Obligation Bonds
Series 1992 6.10 2012 500,000 476,945
Warren County Waterworks System Revenue Bonds Series 1994 (MBIA Insured) 6.00 2019 675,000 631,213
Whitehall City School District Franklin County Unlimited Tax
Improvement General Obligation Pre-Refunded Bonds
School Building Construction 7.25 2013 500,000 542,620
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $67,632,022) $66,747,987
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $67,632,022)(g) $66,747,987
_____________________________________________________________________________________________________________________________
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 12-31-94 06-30-94
___________________________________________________________________________________________________________
AAA 70% 65%
AA 9 11
A 9 14
BBB and below 12 10
Non-rated -- --
Total 100% 100%
(c) The following abbreviations are used in portfolio descriptions to identify the
insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
GNMA -- Government National Mortgage Association
MBIA -- Municipal Bond Investors Assurance
(d) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(e) Presently non-income producing. For long-term debt securities, item identified is in default as to payment of
interest and/or principal.
(f) Partially pledged as initial deposit on the following open interest rate futures contracts (see Note 4 to the
financial statements):
Type of security Notional amount
______________________________________________________________________________________________________
Purchase contracts
Municipal Bonds March 1995 $8,300,000
Sale contracts
U.S. Treasury Bonds March 1995 8,300,000
______________________________________________________________________________________________________
(g) At Dec. 31, 1994, the cost of securities for federal income tax purposes was approximately $67,594,000 and
the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $ 1,908,000
Unrealized depreciation (2,754,000)
________________________________________________________________________________________________________
Net unrealized depreciation $ (846,000)
________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
Directors and officers
Directors and officers of the fund
_____________________________________________________________________
President and interested director
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent directors
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested directors who are officers and/or employees of American Express
Financial Corporation
William H. Dudley
Executive vice president, American Express Financial Corporation.
David R. Hubers
President and chief executive officer, American Express Financial
Corporation.
John R. Thomas
Senior vice president, American Express Financial Corporation.
_____________________________________________________________________
Other officer
Leslie L. Ogg
Vice president of all funds in the IDS MUTUAL FUND GROUP and general
counsel and treasurer of the publicly offered funds.<PAGE>
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IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposit (CDs) and
other bank securities.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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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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.
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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.)
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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.
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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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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.
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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.
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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.
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<PAGE>
IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of
capital and income.
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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.
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IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
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IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
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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.
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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.
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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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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.
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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.
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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.
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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.
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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.
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IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
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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.
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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 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.
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Quick telephone reference
American Express Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota:
800-437-3133
Mpls./St. Paul area:
671-3800
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express Infoline
Automated account information (TouchTone phones only), including current
fund prices and performance, account values and recent account
transactions
National/Minnesota:
800-272-4445
Mpls./St. Paul area:
671-1630
AMERICAN EXPRESS
FINANCIAL ADVISORS
IDS State Tax-Exempt Funds
IDS Tower 10
Minneapolis, MN 55440-0010
