-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S5DCfBFLWTyIStk6LiFImp+dNnco9fjz6g48pRHiPFreJ2SVZiyZMD8bjpy9oQIB BqJE7hjIoJWHovi869+Mfg== 0000820027-98-000177.txt : 19980227 0000820027-98-000177.hdr.sgml : 19980227 ACCESSION NUMBER: 0000820027-98-000177 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980226 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDS CALIFORNIA TAX EXEMPT TRUST CENTRAL INDEX KEY: 0000792717 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04646 FILM NUMBER: 98550010 BUSINESS ADDRESS: STREET 1: IDS TOWER 10 STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 BUSINESS PHONE: 6123722772 MAIL ADDRESS: STREET 1: 80 SOUTH 8TH STREET STREET 2: T33/52 CITY: MINNEAPOLIS STATE: MN ZIP: 55440 N-30D 1 IDS State Tax-Exempt Funds Tax-exempt funds from the following states: California Massachusetts Michigan Minnesota New York Ohio 1997 SEMIANNUAL REPORT The goal of each Fund is to provide a high level of income generally exempt from federal income tax as well as from the respective state and local income tax. A portion of each Fund's assets may be invested in bonds whose interest is subject to the alternative minimum tax computation. AMERICAN EXPRESS Financial Advisors Distributed by American Express Financial Advisors Inc. (icon of) shield with U.S. enclosed (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 reduce state tax, too, you can invest in municipal bonds in the state you reside. Investments in municipal bonds are 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 chairman 3 From the portfolio manager 3 Ten largest holdings 6 Financial statements 12 Notes to financial statements 19 Investments in securities 37 Board members and officers 67 IDS mutual funds 68 To our shareholders From the chairman If you're an experienced investor, you know that the past few years have been unusually strong in many financial markets. Perhaps just as important, history shows that bull markets don't last forever. Though they're often unpredictable, declines -- whether they're brief or long-lasting, moderate or substantial -- are always a possibility. We saw evidence of that last October, when financial turmoil in Southeast Asia sparked a sharp decline in worldwide stock markets, including the U.S. That fact reinforces the need for investors to review periodically their long-term goals and examine whether their investment program remains on track to achieving them. Your quarterly investment statements are one part of that monitoring process. The other is a meeting with your American Express financial advisor. That becomes more important if there's a major change in your financial situation or in the financial markets. William R. Pearce (picture of) William R. Pearce William R. Pearce Chairman of the Board From the portfolio manager A powerful rally by the U.S. bond market led to a very productive six months for the IDS State Tax-Exempt Funds. For investors in the Funds' Class A shares, the total returns (which include net asset value change and dividends) ranged from 4.9% to 5.7% for the July through December 1997 period -- the first half of the fiscal year. Despite a continuation of solid economic growth, which many observers thought would put upward pressure on consumer prices, inflation remained remarkably tame throughout the six months. Bolstering the low-inflation outlook during November and December was the financial turmoil in Asian markets, which reinforced the case for falling prices of imported goods as well as somewhat slower economic growth in the U.S. In addition, the Asian situation spawned a "flight to quality" by foreign investors, who, seeking a safe haven for their investments, moved money into U.S. bonds, lending further support to the market. Rates down, bonds up As a result, long-term interest rates, aside from a moderate run-up in August, declined substantially during the period. In fact, yields on municipal bonds reached a 25-year low by year-end. Bond prices, which move in the opposite direction of interest rates, rose accordingly, boosting the Funds' net asset values. On the other hand, the rate decline ultimately depressed the Funds' dividend payments slightly. Compared to most municipal bond funds, however, the dividend level held up quite well. Looking at the technical factors in the market, the supply of new issues was substantial. Fortunately, demand from both institutional and individual buyers was equally strong. Overall, I concentrated purchases in higher-quality issues, given the fact that lower-quality bonds offered only minimally higher yields. I kept a low level of cash reserves (5% or less) in all the Funds, a strategy that enhanced over all performance during the period. State updates Consistent with the generally strong national economy, all of the states represented by the Funds enjoyed good fiscal health. Reflecting that fact, the unemployment level continued to decline in California, while remaining below the national average in Minnesota, Michigan and Massachusetts. In New York, reserves in the state's "rainy day" fund reached an all-time high, and in Ohio, there was a budget surplus at the end of 1997. Those and other positive factors resulted in a trend toward upgrading of bond quality by rating agencies, which provided support for municipal bond prices. As the second half of the fiscal year begins, inflation appears to remain well under control. Assuming that continues, the level of long-term interest rates shouldn't present a serious problem for the bond market in the months ahead. At the same time, given how much rates came down in 1997, I think a similar decline is unlikely this year. Therefore, I plan to continue my emphasis on preserving investors' capital and the Funds' dividends, which I expect to provide the bulk of the return in 1998. Paul B. Hylle (picture of) Paul B. Hylle Paul B. Hylle Portfolio manager To our shareholders California Class A 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.36 June 30, 1997 $5.24 Increase $0.12 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.15 From capital gains $ -- Total distributions $0.15 Total return* +5.1** Class B 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.36 June 30, 1996 $5.24 Increase $0.12 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.13 From capital gains $ -- Total distributions $0.13 Total return* +4.7** Massachusetts Class A 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.56 June 30, 1997 $5.42 Increase $0.14 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.14 From capital gains $ -- Total distributions $0.14 Total return* +5.3** Class B 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.56 June 30, 1997 $5.42 Increase $0.14 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.12 From capital gains $ -- Total distributions $0.12 Total return* +4.9** Michigan Class A 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.57 June 30, 1997 $5.44 Increase $0.13 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.14 From capital gains $ -- Total distributions $0.14 Total return* +4.9** Class B 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.57 June 30, 1997 $5.44 Increase $0.13 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.12 From capital gains $ -- Total distributions $0.12 Total return* +4.5** *The prospectus discusses the effect of sales charges, if any, on the various classes. **The total return is a hypothetical investment in the Fund with all distributions reinvested. Minnesota Class A 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.42 June 30, 1997 $5.30 Increase $0.12 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.15 From capital gains $ -- Total distributions $0.15 Total return* +5.2** Class B 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.42 June 30, 1997 $5.30 Increase $0.12 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.13 From capital gains $ -- Total distributions $0.13 Total return* +4.8** New York Class A 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.31 June 30, 1997 $5.15 Increase $0.16 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.14 From capital gains $ -- Total distributions $0.14 Total return* +5.7** Class B 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.31 June 30, 1997 $5.15 Increase $0.16 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.12 From capital gains $ -- Total distributions $0.12 Total return* +5.3** Ohio Class A 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.51 June 30, 1997 $5.38 Increase $0.13 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.14 From capital gains $ -- Total distributions $0.14 Total return* +5.3** Class B 6-month performance (All figures per share) Net asset value (NAV) Dec. 31, 1997 $5.51 June 30, 1997 $5.38 Increase $0.13 Distributions July 1, 1997 - Dec. 31, 1997 From income $0.12 From capital gains $ -- Total distributions $0.12 Total return* +4.9 *The prospectus discusses the effect of sales charges, if any, on the various classes. **The total return is a hypothetical investment in the Fund with all distributions reinvested.
The Fund's ten largest holdings IDS California Tax-Exempt Fund Percent Value (of Fund's net assets) (as of Dec. 31, 1997) Anaheim Public Finance Authority Revenue Bonds Series 2 Electric Utilities San Juan 5.75% 2022 4.61% $11,558,985 Long Beach Harbor Revenue Bonds Series 1989A A.M.T. 7.25% 2019 2.88 7,214,830 Los Angeles Department of Water & Power Electric Plant Revenue Bonds Series 1990 7.125% 2030 2.82 7,064,005 Statewide Community Development Authority Revenue Certificate of Participation St. Joseph Health System Group 6.50% 2015 2.50 6,275,060 Statewide Community Development Authority Health Facilities Revenue Bonds Unihealth America Series 1993A Inverse Floater 7.46% 2011 2.34 5,868,750 Los Angeles Convention & Exhibition Center Pre-refunded Certificate of Participation Series 1989A 7.00% 2020 2.12 5,316,000 University of Southern California Educational Facilities Authority Pre-refunded Revenue Bonds Series 1989B 6.75% 2015 2.11 5,304,650 San Diego Regional Transportation Commission Sales Tax Pre-refunded Revenue Bonds Limited Tax Series 1989A 6.25% 2008 2.06 5,181,806 Rancho Mirage Joint Powers Finance Authority Certificate of Participation Eisenhower Memorial Hospital 7.00% 2022 1.91 4,786,860 Fontana Redevelopment Agency Refunding Certificate of Participation Police Facility Series 1993 5.625% 2016 1.84 4,611,150 Note: The Fund's investment income from certain securities may be subject to the Alternative Minimum Tax (A.M.T.). (icon of) pie chart The ten holdings listed here make up 25.19% of the Fund's net assets
The Fund's ten largest holdings IDS Massachusetts Tax-Exempt Fund Percent Value (of Fund's net assets) (as of Dec. 31, 1997) Boston City Hospital Refunding Revenue Bonds Series B 5.75% 2023 4.01% $3,060,660 Health & Educational Facilities Authority Revenue Bonds Suffolk University Series B 6.35% 2022 3.56 2,711,342 Health & Educational Facilities Authority Revenue Bonds Cape Cod Health System Series A 5.25% 2021 3.25 2,479,675 Health & Educational Facilities Authority Revenue Bonds Boston College Series J 6.625% 2021 2.85 2,177,240 Industrial Finance Agency Pollution Control Refunding Revenue Bonds Eastern Edison Series 1993 5.875% 2008 2.70 2,055,860 Health & Educational Facilities Authority Revenue Bonds Charlton Memorial Hospital Series 1991B 7.25% 2013 2.53 1,928,203 Municipal Wholesale Electric Power Supply System Refunding Revenue Bonds Series B 4.75% 2011 2.26 1,723,453 Bay Transportation Authority General Transportation System Refunding Bonds Series 1992B 6.20% 2016 2.25 1,716,990 North Attleborough Unlimited General Obligation Bonds Series 1997 5.25% 2017 2.23 1,700,175 Industrial Finance Agency Resource Recovery Revenue Bonds SEMASS Series 1991A 9.00% 2015 2.22 1,695,630 Note: The Fund's investment income from certain securities may be subject to the Alternative Minimum Tax (A.M.T.). (icon of) pie chart The ten holdings listed here make up 27.86% of the Fund's net assets
The Fund's ten largest holdings IDS Michigan Tax-Exempt Fund Percent Value (of Fund's net assets) (as of Dec. 31, 1997) Romulus Township School District Unlimited Tax General Obligation Refunding Bonds 5.75% 2022 3.22% $2,602,850 State Building Authority Refunding Revenue Bonds Series 1991I 6.25% 2020 2.92 2,356,706 Detroit Sewer Disposal Revenue Bonds 5.70% 2023 2.56 2,065,120 Grand Ledge Public Schools Unlimited Tax General Obligation Refunding Bonds Counties of Eaton, Clinton & Ionia Series 1995 5.375% 2024 2.50 2,022,520 State Hospital Finance Authority Hospital Pre-refunded Revenue Bonds McLaren Obligated Group Series 1991A 7.50% 2021 2.45 1,979,985 State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds Ford Motor Series 1991A 7.10% 2006 2.41 1,949,706 Monroe County Pollution Control Revenue Bonds Detroit Edison Fermi 2 Plants Series CC A.M.T. 7.50% 2019 2.35 1,896,877 Battle Creek Water Supply System Pre-refunded Revenue Bonds Series 1990B 6.375% 2008-10 2.10 1,699,975 Buena Vista School District Saginaw County School Building & Site Unlimited Tax General Obligation Pre-refunded Bonds Series 1991 7.20% 2016 2.07 1,671,585 Northville Public Schools Unlimited Tax General Obligation Bonds Series 1991B 7.00% 2008 2.05 1,659,345 Note: The Fund's investment income from certain securities may be subject to the Alternative Minimum Tax (A.M.T.). (icon of) pie chart The ten holdings listed here make up 24.63% of the Fund's net assets
The Fund's ten largest holdings IDS Minnesota Tax-Exempt Fund Percent Value (of Fund's net assets) (as of Dec. 31, 1997) State University Board of Regents General Obligation Bonds Series 1996A 5.50% 2021 3.26% $13,286,625 Minneapolis & St. Paul Housing & Redevelopment Authority Health Care System Revenue Bonds Healthspan Series 1993 4.75% 2018 3.14 12,813,525 St. Paul & Minneapolis Housing & Redevelopment Authority Health Care Facility Revenue Bonds Group Health Plan Series 1992 6.75% 2013 2.84 11,577,405 Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds Series A 5.50% 2015 2.76 11,253,250 State General Obligation Various Purpose Pre-refunded Bonds Series 1991 6.70% 2011 2.13 8,689,040 State Public Facilities Authority Water Pollution Control Revenue Bonds Series 1989A 7.00% 2009 2.06 8,419,203 Anoka County General Obligation Capital Improvement Revenue Bonds Series 1989B 7.00% 2007-10 2.01 8,194,939 Hennepin County Lease Revenue Certificate of Participation Series 1991 6.80% 2017 1.94 7,911,345 St. Paul Housing & Redevelopment Authority Sales Tax Revenue Bonds Civic Center 5.55% 2023 1.91 7,789,575 Edina Multi-family Housing Revenue Bonds Walker Assisted Living Series 1991 9.00% 2031 1.82 7,409,836 Note: The Fund's investment income from certain securities may be subject to the Alternative Minimum Tax (A.M.T.). (icon of) pie chart The ten holdings listed here make up 23.87% of the Fund's net assets
The Fund's ten largest holdings IDS New York Tax-Exempt Fund Percent Value (of Fund's net assets) (as of Dec. 31, 1997) State Energy Research & Development Authority Electric Facility Revenue Bonds Consolidated Edison Series 1990A A.M.T. 7.50% 2025 4.49% $5,270,950 United Nations Development Senior Lien Refunding Revenue Bonds Series 1992A 6.00% 2026 4.23 4,961,070 State Urban Development Correction Facility Pre-refunded Revenue Bonds Series 1 7.50% 2020 4.16 4,888,485 State Local Government Assistance Pre-refunded Bonds Series 1991A 7.00% 2016 3.77 4,427,160 State Mortgage Agency Homeowner Mortgage Revenue Bonds Series TT 7.50% 2015 3.68 4,322,840 Triborough Bridge & Tunnel Authority General Purpose Pre-refunded Revenue Bonds Series S 7.00% 2021 2.80 3,290,220 State Environmental Facility State Water & Pollution Control Revolving Fund Revenue Bonds New York City Municipal Water Finance Authority Series 1990A 7.50% 2012 2.80 3,287,970 State Dormitory Authority City University System Revenue Bonds Series 1993A 5.75% 2013 2.77 3,254,220 State Mortgage Agency Homeowner Mortgage Revenue Bonds Series 27 6.90% 2015 2.77 3,248,520 State Energy Research & Development Authority Solid Waste Development Revenue Bonds State Gas & Electric Company Series A A.M.T. 5.70% 2028 2.64 3,096,180 Note: The Fund's investment income from certain securities may be subject to the Alternative Minimum Tax (A.M.T.). (icon of) pie chart The ten holdings listed here make up 34.11% of the Fund's net assets
The Fund's ten largest holdings IDS Ohio Tax-Exempt Fund Percent Value (of Fund's net assets) (as of Dec. 31, 1997) Lakota Local School District Unlimited Tax Improvement General Obligation Bonds 6.25% 2014 3.06% $2,211,220 State Air Quality Development Authority Refunding Revenue Bonds Series 1994 A.M.T. 6.375% 2029 3.04 2,200,120 Erie County Hospital Improvement Refunding Revenue Bonds Firelands Community Hospital Series 1992 6.75% 2015 3.01 2,177,320 State Municipal Electric Generation Agency Joint Venture 5 Revenue Bonds 5.375% 2024 2.79 2,018,120 Lorain County Hospital Facilities Refunding Revenue Bonds EMH Regional Medical Center Series 1995 5.375% 2021 2.78 2,014,280 State Valley School District School Improvement Unlimited Tax General Obligation Bonds Adams & Highland Counties Series 1995 5.25% 2021 2.77 2,001,440 Butler County Hospital Facility Improvement Refunding Revenue Bonds 7.50% 2010 2.63 1,905,610 Franklin County Convention Facilities Authority Tax & Lease Revenue Anticipation Pre-refunded Bonds 7.00% 2019 2.28 1,647,855 State Housing Finance Agency Mortgage Revenue Bonds Aristocrat South Board & Care Series 1991A A.M.T. 7.30% 2031 2.20 1,590,825 Cuyahoga County Hospital Refunding Revenue Bonds Cleveland Clinic Foundation Series 1992 5.50% 2011 2.16 1,566,195 Note: The Fund's investment income from certain securities may be subject to the Alternative Minimum Tax (A.M.T.). (icon of) pie chart The ten holdings listed here make up 26.72% of the Funds's net assets
Financial statements Statements of assets and liabilities IDS California Tax-Exempt Trust IDS Special Tax-Exempt Series Trust Dec. 31, 1997 (Unaudited) Assets California Massachusetts Michigan Tax-Exempt Tax-Exempt Tax-Exempt Fund Fund Fund Investments in securities, at value (Note 1) (identified cost $228,702,990, $69,186,977 and $71,503,898) $252,070,174 $75,614,168 $78,913,920 Cash in bank on demand deposit -- -- 3,447 Accrued interest receivable 4,418,980 1,574,286 1,279,270 Receivable for investment securities sold -- 115,000 714,000 --------- ------- ------- Total assets 256,489,154 77,303,454 80,910,637 ----------- ---------- ---------- Liabilities Disbursements in excess of cash on demand deposit 130,984 963,278 -- Dividends payable to shareholders 176,394 52,162 56,875 Payable for investment securities purchased 5,274,216 -- -- Accrued investment management services fee 3,231 983 1,041 Accrued distribution fee 259 213 93 Accrued service fee 1,203 366 387 Accrued transfer agency fee 238 114 99 Accrued administrative services fee 275 84 89 Other accrued expenses 34,223 16,732 26,119 ------ ------ ------ Total liabilities 5,621,023 1,033,932 84,703 --------- --------- ------ Net assets applicable to outstanding shares $250,868,131 $76,269,522 $80,825,934 ============ =========== =========== Represented by Shares of beneficial interest-- $.01 par value (Note 1) $ 468,346 $ 137,247 $ 145,207 Additional paid-in capital 232,895,907 70,810,148 74,531,322 Excess of distributions over net investment income (10,734) (1,056) (97) Accumulated net realized gain (loss) (Note 5) (5,852,572) (1,104,008) (1,260,520) Unrealized appreciation (depreciation) on investments 23,367,184 6,427,191 7,410,022 ---------- --------- --------- Total-- representing net assets applicable to outstanding shares $250,868,131 $76,269,522 $80,825,934 ============ =========== =========== Net assets applicable to outstanding shares: Class A $238,253,719 $65,886,057 $76,317,547 Class B $ 12,614,412 $10,383,465 $ 4,508,387 Outstanding shares of beneficial interest: Class A shares 44,479,079 11,856,082 13,710,757 Class B shares 2,355,500 1,868,635 809,952 Net asset value per share: Class A $ 5.36 $ 5.56 $ 5.57 Class B $ 5.36 $ 5.56 $ 5.57 See accompanying notes to financial statements.
Statements of assets and liabilities IDS California Tax-Exempt Trust IDS Special Tax-Exempt Series Trust Dec. 31, 1997 (Unaudited) Assets Minnesota New York Ohio Tax-Exempt Tax-Exempt Tax-Exempt Fund Fund Fund Investments in securities, at value (Note 1) (identified cost $373,435,447, $105,036,036 and $65,367,803) $405,775,599 $115,729,512 $71,423,567 Cash in bank on demand deposit 200,053 1,117,948 23,229 Accrued interest receivable 8,218,242 2,243,841 966,337 Receivable for investment securities sold 75,000 -- -- ------ ------- ------- Total assets 414,268,894 119,091,301 72,413,133 Liabilities Dividends payable to shareholders 304,047 82,745 50,305 Payable for investment securities purchased 6,027,284 1,583,722 -- Accrued investment management services fee 5,142 1,511 931 Accrued distribution fee 536 175 85 Accrued service fee 1,955 563 347 Accrued transfer agency fee 553 158 798 Accrued administrative services fee 425 129 79 Other accrued expenses 75,226 15,991 10,146 ------ ------ ------ Total liabilities 6,415,168 1,684,994 62,691 --------- --------- ------ Net assets applicable to outstanding shares $407,853,726 $117,406,307 $72,350,442 ============ ============ =========== Represented by Shares of beneficial interest-- $.01 par value (Note 1) $ 752,772 $ 221,300 $ 131,289 Additional paid-in capital 383,752,047 109,209,546 67,641,571 Undistributed (excess of distributions over) net investment income 5,382 (193) 9,550 Accumulated net realized gain (loss) (Note 5) (8,996,627) (2,717,822) (1,487,732) Unrealized appreciation (depreciation) on investments 32,340,152 10,693,476 6,055,764 ---------- ---------- --------- Total-- representing net assets applicable to outstanding shares $407,853,726 $117,406,307 $72,350,442 ============ ============ =========== Net assets applicable to outstanding shares: Class A $381,750,540 $108,701,645 $68,199,947 Class B $ 26,103,186 $ 8,704,662 $ 4,150,495 Outstanding shares of beneficial interest: Class A shares 70,459,087 20,489,300 12,375,784 Class B shares 4,818,074 1,640,654 753,148 Net asset value per share: Class A $ 5.42 $ 5.31 $ 5.51 Class B $ 5.42 $ 5.31 $ 5.51 See accompanying notes to financial statements.
Financial statements Statements of operations IDS California Tax-Exempt Trust IDS Special Tax-Exempt Series Trust Six months ended Dec. 31, 1997 (Unaudited) Assets California Massachusetts Michigan Tax-Exempt Tax-Exempt Tax-Exempt Fund Fund Fund Income: Interest $ 7,435,323 $2,264,222 $2,436,175 ------------ ---------- ---------- Expenses (Note 2): Investment management services fee 583,692 178,195 190,869 Distribution fee-- Class B 42,442 34,106 15,012 Transfer agency fee 43,830 21,025 18,591 Incremental transfer agency fee-- Class B 198 167 84 Service fee Class A 205,316 57,940 67,166 Class B 9,738 7,958 3,456 Administrative services fees and expenses 51,639 16,768 17,856 Compensation of board members 4,084 4,084 4,084 Custodian fees 8,576 6,056 3,809 Postage 6,719 1,822 921 Registration fees 18,227 12,842 16,205 Reports to shareholders 1,422 226 200 Audit fees 8,500 7,750 7,750 Other 1,930 337 405 ----- --- --- Total expenses 986,313 349,276 346,408 Earnings credits on cash balances (Note 2) (33,691) (11,030) (8,146) ------- ------- ------ Total net expenses 952,622 338,246 338,262 ------- ------- ------- Investment income (loss)-- net 6,482,701 1,925,976 2,097,913 --------- --------- --------- Realized and unrealized gain (loss) -- net Net realized gain (loss) on: Security transactions (Note 3) 1,303,653 111,534 141,512 Financial futures contracts 67,376 7,365 11,039 ------ ----- ------ Net realized gain (loss) on investments 1,371,029 118,899 152,551 Net change in unrealized appreciation (depreciation) on investments 4,340,244 1,778,400 1,635,516 --------- --------- --------- Net gain (loss) on investments 5,711,273 1,897,299 1,788,067 --------- --------- --------- Net increase (decrease) in net assets resulting from operations $12,193,974 $3,823,275 $3,885,980 =========== ========== ========== See accompanying notes to financial statements.
Statements of operations IDS California Tax-Exempt Trust IDS Special Tax-Exempt Series Trust Six months ended Dec. 31, 1997 (Unaudited) Investment income Minnesota New York Ohio Tax-Exempt Tax-Exempt Tax-Exempt Fund Fund Fund Income: Interest $12,879,312 $3,487,762 $2,172,415 ----------- ---------- ---------- Expenses (Note 2): Investment management services fee 934,721 273,175 169,535 Distribution fee-- Class B 91,108 30,796 14,594 Transfer agency fee 102,347 29,713 17,791 Incremental transfer agency fee-- Class B 493 167 78 Service fee Class A 332,414 93,685 59,199 Class B 21,201 7,157 3,405 Administrative services fees and expenses 79,400 24,892 16,518 Compensation of board members 4,084 4,084 4,084 Custodian fees 46,757 1,176 5,271 Postage 16,977 1,626 1,855 Registration fees 16,410 9,963 13,770 Reports to shareholders 13,574 2,500 226 Audit fees 9,000 8,500 7,750 Other 4,905 10,086 2,162 ----- ------ ----- Total expenses 1,673,391 497,520 316,238 Earnings credits on cash balances (Note 2) (55,790) (14,152) (8,747) ------- ------- ------ Total net expenses 1,617,601 483,368 307,491 --------- ------- ------- Investment income (loss)-- net 11,261,711 3,004,394 1,864,924 ---------- --------- --------- Realized and unrealized gain (loss) -- net Net realized gain (loss) on: Security transactions (Note 3) 412,279 174,987 198,827 Financial futures contracts 86,512 285,080 7,365 ------ ------- ----- Net realized gain (loss) on investments 498,791 460,067 206,192 Net change in unrealized appreciation (depreciation) on investments 8,637,019 2,889,190 1,584,947 --------- --------- --------- Net gain (loss) on investments 9,135,810 3,349,257 1,791,139 --------- --------- --------- Net increase (decrease) in net assets resulting from operations $20,397,521 $6,353,651 $3,656,063 =========== ========== ========== See accompanying notes to financial statements.
Financial statements Statements of changes in net assets IDS California Tax-Exempt Trust IDS Special Tax-Exempt Series Trust Operations and distributions Dec. 31, 1997 June 30, 1997 Dec. 31, 1997 June 30, 1997 California Massachusetts Tax-Exempt Fund Tax-Exempt Fund Six months ended Year ended Six months ended Year ended (Unaudited) (Unaudited) Investment income (loss)-- net $ 6,482,701 $ 13,603,961 $ 1,925,976 $ 3,910,959 Net realized gain (loss) on investments 1,371,029 1,428,855 118,899 244,141 Net change in unrealized appreciation (depreciation) on investments 4,340,244 3,063,495 1,778,400 1,390,465 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations 12,193,974 18,096,311 3,823,275 5,545,565 ---------- ---------- --------- --------- Distributions to shareholders from: Net investment income Class A (6,534,702) (12,900,026) (1,725,599) (3,608,592) Class B (269,441) (394,958) (201,433) (308,683) Net realized gain Class A (2,840) (518,965) -- -- Class B (150) (17,699) -- -- ---- ------- Total distributions (6,807,133) (13,831,648) (1,927,032) (3,917,275) ---------- ----------- ---------- ---------- Share transactions (Note 4) Proceeds from sales Class A shares (Note 2) 13,525,692 19,424,292 3,384,608 6,908,468 Class B shares 2,840,753 4,411,205 2,320,741 3,032,071 Reinvestment of distributions at net asset value Class A shares 4,521,326 9,248,935 1,323,133 2,774,110 Class B shares 203,280 327,596 177,656 269,072 Payments for redemptions Class A shares (17,039,452) (34,815,979) (6,998,078) (12,428,315) Class B shares (Note 2) (731,111) (1,214,600) (456,701) (889,801) -------- ---------- -------- -------- Increase (decrease) in net assets from share transactions 3,320,488 (2,618,551) (248,641) (334,395) --------- ---------- -------- -------- Total increase (decrease) in net assets 8,707,329 1,646,112 1,647,602 1,293,895 Net assets at beginning of period 242,160,802 240,514,690 74,621,920 73,328,025 ----------- ----------- ---------- ---------- Net assets at end of period $250,868,131 $242,160,802 $76,269,522 $74,621,920 ============ ============ =========== =========== Undistributed (excess of distributions over) net investment income $ (10,734) $ 310,708 $ (1,056) $ -- ------------ ------------ ----------- -------- See accompanying notes to financial statements.
Statements of changes in net assets IDS California Tax-Exempt Trust IDS Special Tax-Exempt Series Trust Operations and distributions Dec. 31, 1997 June 30, 1997 Dec. 31, 1997 June 30, 1997 Michigan Minnesota Tax-Exempt Fund Tax-Exempt Fund Six months ended Year ended Six months ended Year ended (Unaudited) (Unaudited) Investment income (loss)-- net $ 2,097,913 $ 4,357,220 $ 11,261,711 $ 23,303,678 Net realized gain (loss) on investments 152,551 178,720 498,791 1,732,758 Net change in unrealized appreciation (depreciation) on investments 1,635,516 1,046,406 8,637,019 6,062,416 --------- --------- --------- --------- Net increase (decrease) in net assets resulting from operations 3,885,980 5,582,346 20,397,521 31,098,852 --------- --------- ---------- ---------- Distributions to shareholders from: Net investment income Class A (2,009,159) (4,220,612) (10,677,425) (22,346,136) Class B (89,330) (145,774) (588,474) (975,607) Net realized gain Class A -- (19,158) -- -- Class B -- (747) -- -- ---- Total distributions (2,098,489) (4,386,291) (11,265,899) (23,321,743) ---------- ---------- ----------- ----------- Share transactions (Note 4) Proceeds from sales Class A shares (Note 2) 2,586,139 4,657,190 25,822,143 37,612,445 Class B shares 960,445 1,464,265 4,384,731 7,437,173 Reinvestment of distributions at net asset value Class A shares 1,429,465 3,050,415 8,283,105 17,393,622 Class B shares 68,472 108,932 465,865 781,646 Payments for redemptions Class A shares (6,048,375) (11,286,452) (37,410,525) (78,924,930) Class B shares (Note 2) (238,707) (582,299) (1,490,992) (2,465,251) -------- -------- ---------- ---------- Increase (decrease) in net assets from share transactions (1,242,561) (2,587,949) 54,327 (18,165,295) ---------- ---------- ------ ----------- Total increase (decrease) in net assets 544,930 (1,391,894) 9,185,949 (10,388,186) Net assets at beginning of period 80,281,004 81,672,898 398,667,777 409,055,963 ---------- ---------- ----------- ----------- Net assets at end of period $80,825,934 $80,281,004 $407,853,726 $398,667,777 =========== =========== ============ ============ Undistributed (excess of distributions over) net investment income $ (97) $ 479 $ 5,382 $ 9,570 ----------- ----------- ------------ ------------ See accompanying notes to financial statements.
Financial statements Statements of changes in net assets IDS California Tax-Exempt Trust IDS Special Tax-Exempt Series Trust Operations and distributions Dec. 31, 1997 June 30, 1997 Dec. 31, 1997 June 30, 1997 New York Ohio Tax-Exempt Fund Tax-Exempt Fund Six months ended Year ended Six months ended Year ended (Unaudited) (Unaudited) Investment income (loss)-- net $ 3,004,394 $ 6,530,033 $ 1,864,924 $ 3,889,654 Net realized gain (loss) on investments 460,067 1,161,146 206,192 470,175 Net change in unrealized appreciation (depreciation) on investments 2,889,190 939,832 1,584,947 744,941 --------- ------- --------- ------- Net increase (decrease) in net assets resulting from operations 6,353,651 8,631,011 3,656,063 5,104,770 --------- --------- --------- --------- Distributions to shareholders from: Net investment income Class A (2,821,590) (6,237,111) (1,790,260) (3,739,886) Class B (183,708) (294,055) (87,356) (129,674) Net realized gain Class A -- -- -- (7,128) Class B -- -- -- (297) ---- Total distributions (3,005,298) (6,531,166) (1,877,616) (3,876,985) ---------- ---------- ---------- ---------- Share transactions (Note 4) Proceeds from sales Class A shares (Note 2) 6,801,802 11,232,398 3,646,497 5,210,610 Class B shares 1,556,230 3,038,506 586,192 1,817,909 Reinvestment of distributions at net asset value Class A shares 2,047,186 4,709,717 1,366,487 2,867,182 Class B shares 154,744 250,963 63,676 98,384 Payments for redemptions Class A shares (10,866,821) (25,606,182) (5,098,771) (14,289,613) Class B shares (Note 2) (790,957) (800,957) (134,877) (607,746) -------- -------- -------- -------- Increase (decrease) in net assets from share transactions (1,097,816) (7,175,555) 429,204 (4,903,274) ---------- ---------- ------- ---------- Total increase (decrease) in net assets 2,250,537 (5,075,710) 2,207,651 (3,675,489) Net assets at beginning of period 115,155,770 120,231,480 70,142,791 73,818,280 ----------- ----------- ---------- ---------- Net assets at end of period $117,406,307 $115,155,770 $72,350,442 $70,142,791 ============ ============ =========== =========== Undistributed (excess of distributions over) net investment income $ (193) $ 711 $ 9,550 $ 22,242 ------------ ------------ ----------- ----------- See accompanying notes to financial statements.
Notes to financial statements IDS California Tax-Exempt Trust IDS Special Tax-Exempt Series Trust (Unaudited as to Dec. 31, 1997) 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, IDS Ohio Tax-Exempt Fund and IDS Insured 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). Each Fund has unlimited authorized shares of beneficial interest. Each Fund's goal is to provide a high level of income generally exempt from federal income tax as well as from the respective state and local income tax. A portion of each Fund's assets may be invested in bonds whose interest is subject to the alternative minimum tax computation. 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. Each Fund offers Class A and Class B shares. Class A shares are sold with a front-end sales charge. Class B shares may be subject to a contingent deferred sales charge and such shares automatically convert to Class A shares during the ninth calendar year of ownership. All classes of shares have identical voting, dividend, liquidation and other rights, and the same terms and conditions, except that the level of distribution fee, transfer agency fee and service fee (class specific expenses) differs among classes. Income, expenses (other than class-specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. The significant accounting policies followed by the Funds are summarized as follows: Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increase and decrease in net assets from operations during the period. Actual results could differ from those estimates. Valuation of securities All securities are valued at the close of each business day. Securities traded on national securities exchanges or included in national market systems are valued at the last quoted sale price. Debt securities are generally traded in the over-the-counter market and are valued at a price deemed best to reflect fair value as quoted by dealers who make the markets in these securities or by an independent pricing service. Securities for which market quotations are not readily available are valued at fair value according to methods selected in good faith by the board. Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates; those maturing in 60 days or less are valued at amortized cost. Option transactions In order to produce incremental earnings, protect gains and facilitate buying and selling of securities for investment purposes, the Funds may buy and sell put and call options and write covered call options on portfolio securities and may write cash-secured put options. The risk in writing a call option is that the Funds give up the opportunity for profit if the market price of the security increases. The risk in writing a put option is that the Funds may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Funds pay a premium whether or not the option is exercised. The Funds also have the additional risk of not being able to enter into a closing transaction if a liquid secondary market does not exist. The Funds 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 purchased put or call option is adjusted by the amount of the premium received or paid. Futures transactions In order to gain exposure to or protect itself from changes in the market, the Funds may buy and sell financial futures contracts. Risks of entering into futures contracts and related options include the possibility that there may be an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities. Upon entering into a futures contract, the Funds may be required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Funds each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The Funds recognize a realized gain or loss when the contract is closed or expires. Illiquid securities At Dec. 31, 1997, investments in securities for IDS Minnesota Tax-Exempt Fund includes an issue that is illiquid. The Fund currently limits investments in illiquid securities to 10% of the net assets, at market value, at the time of purchase. The aggregate value of such securities at Dec. 31, 1997, was $1,747,719 representing 0.4% of IDS Minnesota Tax-Exempt Fund's net assets. Pursuant to guidelines adopted by the board, certain unregistered securities are determined to be liquid and are not included within the 10% limitation specified above. Federal income taxes Since each Fund intends 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. Each Fund is treated as a separate entity for federal income tax purposes. 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 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. The effect on dividend distributions of certain book-to-tax differences is presented as "excess distributions" in the statement of changes in net assets. 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 Funds. 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 Effective March 20, 1995, each Fund entered into an agreement with American Express Financial Corporation (AEFC) for managing its portfolio, providing administrative services and serving as transfer agent. Under an Investment Management Services Agreement, AEFC determines which securities will be purchased, held or sold. The management fee is a percentage of each Fund's average daily net assets in reducing percentages from 0.47% to 0.38% annually. Under an Administrative Services Agreement, each Fund pays AEFC a fee for administration and accounting services at a percentage of the Fund's average daily net assets in reducing percentages from 0.04% to 0.02% annually. Additional administrative service expenses paid by the Fund are office expenses, consultants' fees and compensation of officers and employees. Under this agreement, the Fund also pays taxes, audit and certain legal fees, registration fees for shares, compensation of board members, corporate filing fees, organizational expenses and any other expenses properly payable by the Fund and approved by the board. Under a separate Transfer Agency Agreement, American Express Client Service Corporation (AECSC) maintains shareholder accounts and records. Each Fund pays AECSC an annual fee per shareholder account for this service as follows: oClass A $15.50 oClass B $16.50 Also effective March 20, 1995, each Fund entered into agreements with American Express Financial Advisors Inc. for distribution and shareholder servicing-related services. Under a Plan and Agreement of Distribution, each Fund pays a distribution fee at an annual rate of 0.75% of the Fund's average daily net assets attributable to Class B shares for distribution-related services. Under a Shareholder Service Agreement, each Fund pays a fee for service provided to shareholders by financial advisors and other servicing agents. The fee is calculated at a rate of 0.175% of each Fund's average daily net assets attributable to Class A and Class B shares. Sales charges received by American Express Financial Advisors Inc. for distributing the Funds' shares for the six months ended Dec. 31, 1997, are as follows: Fund Class A Class B IDS California $250,309 $ 8,898 IDS Massachusetts 107,724 5,137 IDS Michigan 89,780 5,342 IDS Minnesota 477,243 21,246 IDS New York 120,558 12,182 IDS Ohio 23,001 1,459 During the six months ended Dec. 31, 1997, the Funds' custodian and transfer agency fees were reduced as a result of earnings credits from overnight cash balances as follows: Fund Reduction IDS California $33,691 IDS Massachusetts 11,030 IDS Michigan 8,146 IDS Minnesota 55,790 IDS New York 14,152 IDS Ohio 8,747 3 Securities transactions For the six months ended Dec. 31, 1997, cost of purchases and proceeds from sales (other than short-term obligations) aggregated for each Fund are as follows: Fund Purchases Proceeds IDS California $16,037,587 $19,425,844 IDS Massachusetts 3,090,379 3,616,690 IDS Michigan 1,958,502 3,907,277 IDS Minnesota 21,636,129 16,233,180 IDS New York 3,572,548 7,731,600 IDS Ohio 4,342,723 3,980,525 Net realized gains and losses on investment sales are determined on an identified cost basis. 4 Capital share transactions Transactions in shares of each Fund for the periods indicated are as follows: California Tax-Exempt Fund Six months ended Dec. 31, 1997 Class A Class B Sold 2,549,146 535,453 Issued for reinvested distributions 851,011 38,266 Redeemed (3,210,987) (137,974) Net increase (decrease) 189,170 435,745 Year ended June 30, 1997 Class A Class B Sold 3,727,951 847,908 Issued for reinvested distributions 1,775,984 62,918 Redeemed (6,684,505) (234,000) Net increase (decrease) (1,180,570) 676,826 Massachusetts Tax-Exempt Fund Six months ended Dec. 31, 1997 Class A Class B Sold 615,331 421,827 Issued for reinvested distributions 240,518 32,286 Redeemed (1,274,364) (83,068) Net increase (decrease) (418,515) 371,045 Year ended June 30, 1997 Class A Class B Sold 1,287,516 564,106 Issued for reinvested distributions 517,304 50,175 Redeemed (2,316,120) (166,069) Net increase (decrease) (511,300) 448,212 Michigan Tax-Exempt Fund Six months ended Dec. 31, 1997 Class A Class B Sold 468,646 173,997 Issues for reinvested distributions 259,017 12,405 Redeemed (1,097,218) (43,341) Net increase (decrease) (369,555) 143,061 Year ended June 30, 1997 Class A Class B Sold 859,824 270,029 Issued for reinvested distributions 563,716 20,129 Redeemed (2,086,380) (107,455) Net increase (decrease) (662,840) 182,703 Minnesota Tax-Exempt Fund Six months ended Dec. 31, 1997 Class A Class B Sold 4,809,800 817,796 Issued for reinvested distributions 1,542,687 86,755 Redeemed (6,971,193) (277,870) Net increase (decrease) (618,706) 626,681 Year ended June 30, 1997 Class A Class B Sold 7,159,020 1,414,781 Issued for reinvested distributions 3,311,994 148,821 Redeemed (15,031,003) (469,087) Net increase (decrease) (4,559,989) 1,094,515 New York Tax-Exempt Fund Six months ended Dec. 31, 1997 Class A Class B Sold 1,292,853 296,716 Issued for reinvested distributions 389,632 29,448 Redeemed (2,072,087) (150,594) Net increase (decrease) (389,602) 175,570 Year ended June 30, 1997 Class A Class B Sold 2,196,024 593,838 Issued for reinvested distributions 921,975 49,118 Redeemed (5,008,087) (156,652) Net increase (decrease) (1,890,088) 486,304 Ohio Tax-Exempt Fund Six months ended Dec. 31, 1997 Class A Class B Sold 670,162 107,803 Issued for reinvested distributions 250,577 11,675 Redeemed (936,401) (24,805) Net increase (decrease) (15,662) 94,673 Year ended June 30, 1997 Class A Class B Sold 974,586 339,467 Issued for reinvested distributions 537,160 18,433 Redeemed (2,679,134) (113,803) Net increase (decrease) (1,167,388) 244,097 5 Capital loss carryover For federal income tax purposes, capital loss carryovers were as follows at June 30, 1997: Expiration Fund Carryover Date IDS California $1,643,088 2006 IDS Massachusetts 268,549 1999 - 2005 IDS Michigan 147,263 2005 IDS Minnesota 972,605 2005 IDS New York 1,956,275 2002 - 2005 IDS Ohio 527,216 2005 It is unlikely the board will authorize a distribution of any net realized capital gains for a Fund until the respective capital loss carryover has been offset or expires.
IDS California Tax-Exempt Trust IDS California Tax-Exempt Fund 6. Financial highlights The tables below show certain important financial information for evaluating each Fund's results. Fiscal period ended June 30, Per share income and capital changesa Class A 1997d 1997 1996 1995 1994 1993 1992 1991 1990 1989c 1988b Net asset value, $5.24 $5.15 $5.16 $5.13 $5.41 $5.18 $4.94 $4.89 $4.97 $4.82 $4.66 beginning of period Income from investment operations: Net investment .15 .29 .28 .30 .31 .30 .31 .32 .32 .16 .32 income (loss) Net gains (losses) .12 .10 .02 .03 (.28) .23 .24 .05 (.08) .15 .16 (both realized and unrealized) Total from .27 .39 .30 .33 .03 .53 .55 .37 .24 .31 .48 investment operations Less distributions: Distributions (.15) (.29) (.28) (.30) (.31) (.30) (.31) (.32) (.32) (.16) (.32) from net investment income Distributions from -- (.01) (.03) -- -- -- -- -- -- -- -- realized gains Total (.15) (.30) (.31) (.30) (.31) (.30) (.31) (.32) (.32) (.16) (.32) distributions Net asset value, $5.36 $5.24 $5.15 $5.16 $5.13 $5.41 $5.18 $4.94 $4.89 $4.97 $4.82 end of period Ratios/supplemental data: Class A 1997d 1997 1996 1995 1994 1993 1992 1991 1990 1989c 1988b Net assets, end of $238 $232 $234 $239 $255 $261 $222 $185 $142 $95 $63 period (in millions) Ratio of expenses .76%f .77%+ .80% .65% .61% .63% .64% .60% .62% .64%f .72% to average daily net assetse Ratio of net 5.25%f 5.64% 5.40% 5.89% 5.67% 5.78% 6.16% 6.51% 6.53% 6.67%f 6.61%+ income (loss) to average daily net assets Portfolio 7% 14% 15% 48% 27% 5% 7% 23% 20% 6% 13% turnover rate (excluding short-term securities) Total returng 5.1% 7.8% 6.0% 6.5% .4% 10.8% 11.4% 7.7% 5.0% 6.5% 10.5% aFor a share outstanding throughout the period. Rounded to the nearest cent. bFiscal year ended Dec. 31, 1988. cSix months ended June 30, 1989. The Fund's fiscal year end was changed from Dec. 31 to June 30, effective 1989. dSix months ended Dec. 31, 1997 (Unaudited). eEffective fiscal year 1996, expense ratio is based on total expenses of the Fund before reduction of earnings credit on cash balances. fAdjusted to an annual basis. gTotal return does not reflect payment of a sales charge.
IDS California Tax-Exempt Trust IDS California Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class B 1997c 1997 1996 1995b Net asset value, $5.24 $5.15 $5.16 $5.21 beginning of period Income from investment operations: Net investment .13 .25 .24 .09 income (loss) Net gains (losses) .12 .10 .02 (.05) (both realized and unrealized) Total from .25 .35 .26 .04 investment operations Less distributions: Distributions (.13) (.25) (.24) (.09) from net investment income Distributions -- (.01) (.03) -- from realized gains Total (.13) (.26) (.27) (.09) distributions Net asset value, $5.36 $5.24 $5.15 $5.16 end of period Ratios/supplemental data: Class B 1997c 1997 1996 1995b Net assets, end of $13 $10 $6 $2 period (in millions) Ratio of expenses 1.51%e 1.52% 1.57% 1.51%e to average daily net assetsd Ratio of net 4.51%e 4.94% 4.64% 4.87%e income (loss) to average daily net assets Portfolio 7% 14% 15% 48% turnover rate (excluding short-term securities) Total returnf 4.7% 7.0% 5.2% .8% aFor a share outstanding throughout the period. Rounded to the nearest cent. bInception date was March 20, 1995. cSix months ended Dec. 31, 1997 (Unaudited). dEffective fiscal year 1996, expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. eAdjusted to an annual basis. fTotal return does not reflect payment of a sales charge.
IDS Special Tax-Exempt Series Trust IDS Massachusetts Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class A 1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989 Net asset value, $5.42 $5.30 $5.27 $5.24 $5.49 $5.20 $4.96 $4.88 $5.01 $4.91 beginning of period Income from investment operations: Net investment .14 .29 .28 .30 .30 .30 .31 .32 .32 .32 income (loss) Net gains (losses) .14 .12 .03 .03 (.25) .29 .24 .08 (.12) .12 (both realized and unrealized) Total from .28 .41 .31 .33 .05 .59 .55 .40 .20 .44 investment operations Less distributions: Distributions from (.14) (.29) (.28) (.30) (.30) (.30) (.31) (.32) (.32) (.32) netinvestment income Distributions from -- -- -- -- -- -- -- -- (.01) (.02) realized gains Total distributions (.14) (.29) (.28) (.30) (.30) (.30) (.31) (.32) (.33) (.34) Net asset value, $5.56 $5.42 $5.30 $5.27 $5.24 $5.49 $5.20 $4.96 $4.88 $5.01 end of period Ratios/supplemental data: Class A 1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989 Net assets, end of $66 $67 $68 $68 $72 $64 $44 $27 $19 $13 period (in millions) Ratio of expenses .83%d .84% .86% .72% .69% .72% .72% .69% .70% .84% to average daily net assetsc Ratio of net 5.17%d 5.32% 5.26% 5.74% 5.40% 5.57% 6.05% 6.53% 6.59% 6.55% income (loss) to average daily net assets Portfolio turnover 4% 8% 6% 16% 6% --% 2% 16% 36% 25% rate (excluding short-term securities) Total returne 5.3% 7.8% 6.0% 6.5% .9% 11.5% 11.4% 8.5% 4.2% 9.2% aFor a share outstanding throughout the period. Rounded to the nearest cent. bSix months ended Dec. 31, 1997 (Unaudited). cEffective fiscal year 1996, expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. dAdjusted to an annual basis. eTotal return does not reflect payment of a sales charge.
IDS Special Tax-Exempt Series Trust IDS Massachusetts Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class B 1997c 1997 1996 1995b Net asset value, $5.42 $5.30 $5.27 $5.31 beginning of period Income from investment operations: Net investment .12 .25 .24 .09 income (loss) Net gains (losses) .14 .12 .03 (.04) (both realized and unrealized) Total from .26 .37 .27 .05 investment operations Less distributions: Distributions from (.12) (.25) (.24) (.09) net investment income Net asset value, $5.56 $5.42 $5.30 $5.27 end of period Ratios/supplemental data: Class B 1997c 1997 1996 1995b Net assets, $10 $8 $6 $2 end of period (in millions) Ratio of expenses 1.59%e 1.59% 1.63% 1.59%e to average daily net assetsd Ratio of net 4.43%e 4.58% 4.51% 4.83%e income (loss) to average daily net assets Portfolio turnover 4% 8% 6% 16% rate (excluding short-term securities) Total returnf 4.9% 7.0% 5.2% .9% aFor a share outstanding throughout the period. Rounded to the nearest cent. bInception date was March 20, 1995. cSix months ended Dec. 31, 1997 (Unaudited). dEffective fiscal year 1996, expense ratio is based on total expenses of the Fund before reduction of earnings credit on cash balances. eAdjusted to an annual basis. fTotal return does not reflect payment of a sales charge.
IDS Special Tax-Exempt Series Trust IDS Michigan Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class A 1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989 Net asset value, $5.44 $5.36 $5.39 $5.35 $5.60 $5.31 $5.04 $4.96 $5.08 $4.85 beginning of period Income from investment operations: Net investment .14 .29 .30 .30 .31 .31 .32 .32 .32 .32 income (loss) Net gains (losses) .13 .08 .04 .05 (.25) .29 .27 .08 (.12) .23 (both realized and unrealized) Total from .27 .37 .34 .35 .06 .60 .59 .40 .20 .55 investment operations Less distributions: Distributions (.14) (.29) (.30) (.31) (.31) (.31) (.32) (.32) (.32) (.32) from net investment income Distributions -- -- (.07) -- -- -- -- -- -- -- from realized gains Total (.14) (.29) (.37) (.31) (.31) (.31) (.32) (.32) (.32) (.32) distributions Net asset value, $5.57 $5.44 $5.36 $5.39 $5.35 $5.60 $5.31 $5.04 $4.96 $5.08 end of period Ratios/supplemental data: Class A 1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989 Net assets, end of $76 $77 $79 $78 $77 $72 $55 $41 $29 $16 period (in millions) Ratio of expenses .82%d .81% .82% .70% .65% .68% .67% .67% .71% .81% to average daily net assetsc Ratio of net 5.20%d 5.38% 5.37% 5.71% 5.43% 5.64% 6.18% 6.45% 6.47% 6.50% income (loss) to average daily net assets Portfolio 2% 21% 29% 48% 16% 2% --% 3% 5% 10% turnover rate (excluding short-term securities) Total returne 4.9% 7.1% 6.3% 6.6% 1.0% 11.6% 12.0% 8.3% 4.1% 11.7% aFor a share outstanding throughout the period. Rounded to the nearest cent. bSix months ended Dec. 31, 1997 (Unaudited). cEffective fiscal year 1996, expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. dAdjusted to an annual basis. eTotal return does not reflect payment of a sales charge.
IDS Special Tax-Exempt Series Trust IDS Michigan Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class B 1997c 1997 1996 1995b Net asset value, $5.44 $5.36 $5.39 $5.43 beginning of period Income from investment operations: Net investment .12 .25 .25 .09 income (loss) Net gains (losses) .13 .08 .04 (.04) (both realized and unrealized) Total from .25 .33 .29 .05 investment operations Less distributions: Distributions (.12) (.25) (.25) (.09) from net investment income Distributions -- -- (.07) -- from realized gains Total (.12) (.25) (.32) (.09) distributions Net asset value, $5.57 $5.44 $5.36 $5.39 end of period Ratios/supplemental data: Class B 1997c 1997 1996 1995b Net assets, end of $5 $4 $3 $1 period (in millions) Ratio of expenses 1.57%d 1.56% 1.59% 1.62%d to average daily net assetse Ratio of net 4.46%d 4.65% 4.63% 4.89%d income (loss) to average daily net assets Portfolio 2% 21% 29% 48% turnover rate (excluding short-term securities) Total returnf 4.5% 6.3% 5.6% .9% aFor a share outstanding throughout the period. Rounded to the nearest cent. bInception date was March 20, 1995. cSix months ended Dec. 31, 1997 (Unaudited). dAdjusted to an annual basis. eEffective fiscal year 1996, expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. fTotal return does not reflect payment of a sales charge.
IDS Special Tax-Exempt Series Trust IDS Minnesota Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class A 1997d 1997 1996 1995 1994 1993 1992 1991 1990 1989c 1988b Net asset value, $5.30 $5.20 $5.19 $5.16 $5.44 $5.22 $5.01 $4.95 $5.05 $4.86 $4.76 beginning of period Income from investment operations: Net investment .15 .31 .30 .31 .31 .31 .33 .33 .32 .16 .33 income (loss) Net gains (losses) .12 .10 .01 .03 (.28) .22 .21 .06 (.10) .19 .10 (both realized and unrealized) Total from .27 .41 .31 .34 .03 .53 .54 .39 .22 .35 .43 investment operations Less distributions: Distributions (.15) (.31) (.30) (.31) (.31) (.31) (.33) (.33) (.32) (.16) (.33) from net investment income Net asset value, $5.42 $5.30 $5.20 $5.19 $5.16 $5.44 $5.22 $5.01 $4.95 $5.05 $4.86 end of period Ratios/supplemental data: Class A 1997d 1997 1996 1995 1994 1993 1992 1991 1990 1989c 1988b Net assets, end of $382 $376 $393 $403 $408 $402 $313 $233 $181 $121 $82 period (in millions) Ratio of expenses .78%f .75%+ .80% .67% .66% .67% .66% .63% .64% .65%f .65% to average daily net assetse Ratio of net 5.59%f 5.81% 5.66% 6.01% 5.73% 5.91% 6.43% 6.67% 6.62% 6.84%f 6.73%+ income (loss) to average daily net assets Portfolio 4% 14% 13% 28% 13% 2% 7% 10% 8% --% 14% turnover rate (excluding short-term securities) Total returng 5.2% 8.1% 5.9% 6.8% .4% 10.5% 11.0% 8.2% 4.8% 7.4% 9.3% aFor a share outstanding throughout the period. Rounded to the nearest cent. bFiscal year ended Dec. 31, 1988. cSix months ended June 30, 1989. The Fund's fiscal year end was changed from Dec. 31 to June 30, effective 1989. dSix months ended Dec. 31, 1997 (Unaudited). eEffective fiscal year 1996, expense ratio is based on total expenses of the Fund before reduction of earnings credit on cash balances. fAdjusted to an annual basis. gTotal return does not reflect payment of a sales charge.
IDS Special Tax-Exempt Series Trust IDS Minnesota Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class B 1997c 1997 1996 1995b Net asset value, $5.30 $5.20 $5.19 $5.24 beginning of period Income from investment operations: Net investment .13 .27 .26 .09 income (loss) Net gains (losses) .12 .10 .01 (.05) (both realized and unrealized) Total from .25 .37 .27 .04 investment operations Less distributions: Distributions (.13) (.27) (.26) (.09) from net investment income Net asset value, $5.42 $5.30 $5.20 $5.19 end of period Ratios/supplemental data: Class B 1997c 1997 1996 1995b Net assets, end of $26 $22 $16 $4 period (in millions) Ratio of expenses 1.53%e 1.50% 1.57% 1.27%e to average daily net assetsd Ratio of net 4.84%e 5.05% 4.94% 5.40%e income (loss) to average daily net assets Portfolio 4% 14% 13% 28% turnover rate (excluding short-term securities) Total returnf 4.8% 7.2% 5.2% .8% aFor a share outstanding throughout the period. Rounded to the nearest cent. bInception date was March 20, 1995. cSix months ended Dec. 31, 1997 (Unaudited). dEffective fiscal year 1996, expense ratio is based on total expenses of the Fund before reduction of earnings credit on cash balances. eAdjusted to an annual basis. fTotal return does not reflect payment of a sales charge.
IDS Special Tax-Exempt Series Trust IDS New York Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class A 1997d 1997 1996 1995 1994 1993 1992 1991 1990 1989c 1988b Net asset value, $5.15 $5.06 $5.09 $5.12 $5.41 $5.13 $4.86 $4.80 $4.87 $4.73 $4.58 beginning of period Income from investment operations: Net investment .14 .28 .29 .30 .30 .30 .31 .31 .31 .16 .31 income (loss) Net gains (losses) .16 .09 (.03) (.03) (.29) .28 .27 .06 (.07) .14 .15 (both realized and unrealized) Total from .30 .37 .26 .27 .01 .58 .58 .37 .24 .30 .46 investment operations Less distributions: Distributions from (.14) (.28) (.29) (.30) (.30) (.30) (.31) (.31) (.31) (.16) (.31) net investment income Net asset value, $5.31 $5.15 $5.06 $5.09 $5.12 $5.41 $5.13 $4.86 $4.80 $4.87 $4.73 end of period Ratios/supplemental data Class A 1997d 1997 1996 1995 1994 1993 1992 1991 1990 1989c 1988b Net assets, end of $109 $108 $115 $120 $120 $117 $95 $79 $68 $49 $34 period (in millions) Ratio of expenses to .80%f .81% .82% .70% .65% .67% .67% .65% .65% .66%f .71% average daily net assetse Ratio of net income 5.22%f 5.55% 5.51% 6.00% 5.61% 5.79% 6.26% 6.53% 6.57% 6.78%f 6.61% (loss) to average daily net assets Portfolio turnover 3% 12% 9% 20% 10% --% 8% 17% 8% 1% 6% rate (excluding short-term securities) Total returng 5.7% 7.6% 5.2% 5.5% .1% 11.6% 12.3% 8.2% 5.0% 6.5% 10.3% aFor a share outstanding throughout the period. Rounded to the nearest cent. bFiscal year ended Dec. 31, 1988. cSix months ended June 30, 1989. The Fund's fiscal year end was changed from Dec. 31 to June 30, effective 1989. dSix months ended Dec. 31, 1997 (Unaudited). eEffective fiscal year 1996, expense ratio is based on total expense of the Fund before reduction of earnings credits on cash balances. fAdjusted to an annual basis. gTotal return does not reflect payment of a sales charge.
IDS Special Tax-Exempt Series Trust IDS New York Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class B 1997c 1997 1996 1995b Net asset value, $5.15 $5.06 $5.09 $5.17 beginning of period Income from investment operations: Net investment .12 .25 .25 .09 income (loss) Net gains (losses) .16 .09 (.03) (.08) (both realized and unrealized Total from investment .28 .34 .22 .01 operations Less distributions: Distributions from net (.12) (.25) (.25) (.09) investment income Net asset value, $5.31 $5.15 $5.06 $5.09 end of period Ratios/supplemental data Class B 1997c 1997 1996 1995b Net assets, end of $9 $8 $5 $2 period (in millions) Ratio of expenses to 1.56%e 1.56% 1.59% 1.59%e average daily net assetsd Ratio of net income 4.47%e 4.81% 4.79% 5.42%e (loss) to average daily net assets Portfolio turnover rate 3% 12% 9% 20% (excluding short-term securities) Total return f 5.3% 6.8% 4.4% .2% aFor a share outstanding throughout the period. Rounded to the nearest cent. bInception date was March 20, 1995. cSix months ended Dec. 31, 1997 (Unaudited). dEffective fiscal year 1996, expense ratio is based on total expense of the Fund before reduction of earnings credits on cash balances. eAdjusted to an annual basis. fTotal return does not reflect payment of a sales charge.
IDS Special Tax-Exempt Series Trust IDS Ohio Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class A 1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989 Net asset value, $5.38 $5.28 $5.28 $5.26 $5.58 $5.28 $5.01 $4.94 $5.04 $4.87 beginning of period Income from investment operations: Net investment .14 .29 .29 .29 .30 .30 .31 .32 .31 .31 income (loss) Net gains (losses) .13 .10 .01 .03 (.32) .31 .27 .07 (.09) .18 (both realized and unrealized) Total from .27 .39 .30 .32 (.02) .61 .58 .39 .22 .49 investment operations Less distributions: Distributions from (.14) (.29) (.29) (.30) (.30) (.30) (.31) (.32) (.31) (.31) net investment income Distributions from -- -- (.01) -- -- (.01) -- -- (.01) (.01) realized gains Total distributions (.14) (.29) (.30) (.30) (.30) (.31) (.31) (.32) (.32) (.32) Net asset value, $5.51 $5.38 $5.28 $5.28 $5.26 $5.58 $5.28 $5.01 $4.94 $5.04 end of period Ratios/supplemental data: Class A 1997b 1997 1996 1995 1994 1993 1992 1991 1990 1989 Net assets, end of $68 $67 $72 $73 $72 $65 $47 $33 $25 $16 period (in millions) Ratio of expenses to .84%d .83% .85% .71% .66% .67% .70% .68% .70% .82% average daily net assetsc Ratio of net income 5.21%d 5.46% 5.35% 5.65% 5.44% 5.65% 6.14% 6.41% 6.43% 6.40% (loss) to average daily net assets Portfolio turnover 6% 9% 24% 45% 11% --% 5% 2% 6% 10% rate (excluding short-term securities) Total returne 5.3% 7.4% 5.7% 6.2% (.5%) 12.1% 11.9% 8.1% 4.6% 10.5% aFor a share outstanding throughout the period. Rounded to the nearest cent. bSix months ended Dec. 31, 1997. (Unaudited). cEffective fiscal year 1996, expense ratio is based on total expense of the Fund before reduction of earnings credits on cash balances. dAdjusted to an annual basis. eTotal return does not reflect payment of a sales charge.
IDS Special Tax-Exempt Series Trust IDS Ohio Tax-Exempt Fund Fiscal period ended June 30, Per share income and capital changesa Class B 1997c 1997 1996 1995b Net asset value, $5.38 $5.28 $5.28 $5.34 beginning of period Income from investment operations: Net investment .12 .25 .24 .09 income (loss) Net gains (losses) .13 .10 .01 (.06) (both realized and unrealized) Total from .25 .35 .25 .03 investment operations Less distributions: Distributions (.12) (.25) (.24) (.09) from net investment income Distributions -- -- (.01) -- from realized gains Total (.12) (.25) (.25) (.09) distributions Net asset value, $5.51 $5.38 $5.28 $5.28 end of period Ratios/supplemental data: Class B 1997c 1997 1996 1995b Net assets, end of $4 $4 $2 $1 period (in millions) Ratio of expenses 1.59%e 1.59% 1.59% 1.66%e to average daily net assetsd Ratio of net 4.46%e 4.74% 4.63% 4.58%e income (loss) to average daily net assets Portfolio 6% 9% 24% 45% turnover rate (excluding short-term securities) Total returnf 4.9% 6.6% 5.0% .6% aFor a share outstanding throughout the period. Rounded to the nearest cent. bInception date was March 20, 1995. cSix months ended Dec. 31, 1997. (Unaudited). dEffective fiscal year 1996, expense ratio is based on total expenses of the Fund before reduction of earnings credits on cash balances. eAdjusted to an annual basis. fTotal return does not reflect payment of a sales charge.
Investments in securities IDS California Tax-Exempt Fund (Percentages represent value of Dec. 31, 1997 (Unaudited) investments compared to net assets) Municipal bonds (95.1%) Name of issuer and Coupon Maturity Principal Value(a) title of issue (b,c,d) rate year amount ABAG Finance Authority for Nonprofit Corporations Certificate of Participation International School Series 1996 7.375% 2026 $ 2,200,000 $ 2,284,238 Alameda County Certificate of Participation Series 1997 (AMBAC Insured) 5.00 2016 250,000 246,205 Aliso Viejo Orange County District Community Facilities District 88-1 Special Tax Bonds Series 1992A 7.35 2018 3,000,000 3,457,380 Anaheim Public Finance Authority Revenue Bonds Series 2 Electric Utilities San Juan (FGIC Insured) 5.75 2022 11,100,000 11,558,985 Brea Redevelopment Agency Tax Allocation Refunding Bonds Redevelopment Project AB (MBIA Insured) 5.50 2017 1,800,000 1,842,462 Burbank Redevelopment Agency Tax Allocation Bonds Golden State Series 1993A 6.00 2023 2,000,000 2,078,980 Chapman College Educational Facilities Authority Revenue Bonds Series 1989B 7.50 2018 500,000 557,590 Clearlake Redevelopment Agency Highlands Park Community Development Tax Allocation Bonds Series 1993 6.40 2023 1,420,000 1,488,657 Eastern Municipal Water District Riverside County Water & Sewer Pre-refunded Revenue Certificate of Participation Series 1991 (FGIC Insured) 6.50 2020 3,000,000 3,294,930 Eastern Municipal Water District Riverside County Water & Sewer Revenue Certificate of Participation Series 1991 6.00 2023 1,000,000 1,046,110 El Centro Financial Authority Water & Wastewater Revenue Bonds Series 1997A (AMBAC Insured) 5.125 2027 1,200,000 1,179,216 Encinitas Unified School District Unlimited General Obligation Bonds Zero Coupon Series 1996 (MBIA Insured) 5.85 2015-16 3,500,000(g) 1,402,425 Fontana Redevelopment Agency Refunding Certificate of Participation Police Facility Series 1993 5.625 2016 4,500,000 4,611,150 Fontana Unified School District Unlimited General Obligation Bonds Series C (FGIC Insured) 6.15 2020 3,470,000 3,835,669 Fontana Unified School District Unlimited Tax General Obligation Bonds Zero Coupon Series C (FGIC Insured) 6.28 2000 2,000,000(e) 1,837,020 Foothill/Eastern Transportation Corridor Agency Toll Road Senior Lien Revenue Bonds Series 1995A 6.00 2034 1,775,000 1,857,857 Garden Grove Agency Community Development Tax Allocation Refunding Bonds Garden Grove Community 5.875 2023 3,000,000 3,081,330 Garden Grove Certificate of Participation Bahia Village/Emerald Isle (FSA Insured) 5.70 2023 2,660,000 2,765,974 Huntington Beach Certificate of Participation Revenue Bonds Civic Center Refinancing (AMBAC Insured) 5.50 2016 1,715,000 1,754,411 Irwindale Community Redevelopment Agency City Industrial Development Tax Allocation Refunding Bonds Series 1998 (FSA Insured) 5.00 2017 1,000,000 985,230 Irwindale Redevelopment Agency Sub Lien Tax Allocation Bonds Series 1996 7.00 2019 1,700,000 1,876,987 Janesville Union School District Lassen County General Obligation Bonds Series 1996 Election Bank Qualified 6.45 2021 875,000 918,759 Lake Elsinore Public Financing Authority Local Agency Revenue Bonds Series 1997F 7.10 2020 3,000,000 3,215,010 Lake Elsinore School Financing Authority Revenue Bonds Series 1997 6.125 2019 1,235,000 1,292,489 Long Beach Harbor Revenue Bonds Series 1989A A.M.T. 7.25 2019 7,000,000 7,214,830 Los Angeles Convention & Exhibition Center Pre-refunded Certificate of Participation Series 1989A 7.00 2020 5,000,000 5,316,000 Los Angeles Convention & Exhibition Center Pre-refunded Certificate of Participation Series 1989A 7.30 2009 1,000,000 1,067,870 Los Angeles Convention & Exhibition Center Pre-refunded Certificate of Participation Series 1989A 7.375 2018 2,900,000 3,100,216 Los Angeles County Transportation Commission Sales Tax Pre-refunded Revenue Bonds Series 1988A 7.875 2008 500,000 520,065 Los Angeles County Transportation Commission Sales Tax Refunding Revenue Bonds Series 1989A 7.40 2015 2,000,000 2,130,300 Los Angeles County Transportation Commission Sales Tax Refunding Revenue Bonds Series A 7.00 2019 4,150,000 4,394,601 Los Angeles Department of Water & Power Electric Plant Revenue Bonds Series 1990 7.125 2030 6,500,000 7,064,005 Los Angeles Department of Water & Power Waterworks Refunding Revenue Bonds Series 2 (Secondary FGIC Insured) 4.50 2018 3,000,000 2,748,480 Los Angeles International Airport Revenue Bonds Series D (FGIC Insured) A.M.T. 5.50 2015 1,000,000 1,033,210 Los Angeles Multi-family Housing Revenue Bonds Park Parthenia Series 1986A (GNMA Insured) A.M.T. 7.40 2022 1,000,000 1,027,820 Los Angeles Single Family Home Mortgage Revenue Bonds Series 1991A (GNMA & FNMA Insured) A.M.T. 6.875 2025 775,000 818,671 Los Angeles State Building Authority Lease Pre-refunded Revenue Bonds State Department of General Services Lease Series 1988A 7.25 2006 1,500,000 1,538,565 Los Angeles State Building Authority Lease Pre-refunded Revenue Bonds State Department of General Services Lease Series 1988A 7.50 2011 1,500,000 1,539,180 Los Angeles State Harbor Revenue Bonds Escrowed to Maturity 7.60 2018 1,000,000 1,287,260 Los Angeles State Harbor Revenue Bonds Series 1996B (MBIA Insured) A.M.T. 5.375 2019-23 3,300,000 3,310,624 Los Angeles Wastewater System Refunding Revenue Bonds Series D (FGIC Insured) 4.70 2017 1,000,000 949,190
Millbrae Residential Facilities Revenue Bonds Magnolia of Millbrae Series 1997A A.M.T. 7.375 2027 2,500,000 2,534,775 Mount Diablo Hospital District Hospital Pre-refunded Revenue Bonds Series 1990A (AMBAC Insured) 7.00 2017 3,000,000 3,300,090 North City West Community School Facility Authority Special Tax Refunding Revenue Bonds Series 1995B (CGIC Insured) 5.75 2015 1,000,000 1,073,580 Northern California Public Power Authority Power Pre-refunded Revenue Bonds Hydroelectric Series 1986B-3 8.00 2024 2,000,000 2,042,620 Northern California Public Power Authority Power Pre-refunded Revenue Bonds Hydroelectric 1 Series 1986B-1 8.00 2024 2,100,000 2,144,751 Northern California Transmission Agency California-Oregon Transmission Pre-refunded Revenue Bonds Series 1990A (MBIA Insured) 7.00 2024 2,000,000 2,163,940 Northern California Transmission Select Auction Variable Rate Security & Residual Interest Revenue Bonds Inverse Floater (MBIA Insured) 5.50 2024 4,500,000(f) 4,561,830 Novato Community Facility District 1 Vintage Oaks Public Improvement Special Tax Refunding Bonds 7.25 2021 2,000,000 2,185,300 Pleasanton Joint Powers Financing Authority Reassessment Revenue Bonds Series 1993A 6.15 2012 1,860,000 1,989,568 Port of Oakland Refunding Revenue Bonds Series 1997G (MBIA Insured) A.M.T. 5.375 2025 3,080,000 3,097,186 Rancho Cucamonga Redevelopment Agency 1990 Tax Allocation Pre-refunded Bonds (MBIA Insured) 7.125 2019 3,540,000 3,791,623 Rancho Mirage Joint Powers Finance Authority Certificate of Participation Eisenhower Memorial Hospital 7.00 2022 4,250,000 4,786,860 Redding Redevelopment Agency Tax Allocation Refunding Bonds Canby Hilltop Cypress Series D (CGIC Insured) 5.00 2023 4,700,000 4,560,833 Redwood City Elementary School District Capital Appreciation General Obligation Bonds San Mateo County Zero Coupon Series 1997 (FGIC Insured) 5.65 2020 5,475,000(g) 1,706,174 Richmond Elementary School District Lassen County General Obligation Bonds Series 1996 Election Bank Qualified 6.50 2021 649,000 697,811 Richmond Joint Powers Financing Authority Leases & Gas Tax Refunding Revenue Bonds Series 1995A 5.25 2013 2,000,000 2,027,020 Sacramento Cogeneration Authority Cogeneration Revenue Bonds Procter & Gamble Series 1995 6.375 2010 1,000,000 1,098,930 Sacramento County Certificate of Participation (AMBAC Insured) 4.75 2017 3,000,000 2,866,440 Sacramento Municipal Utility District Pre-refunded Bonds Series V 7.50 2018 2,775,000 2,839,796 Sacramento Municipal Utility District Pre-refunded Bonds Series W 7.50 2018 1,980,000 2,026,233 Sacramento Municipal Utility District Pre-refunded Bonds Series Y (MBIA Insured) 6.75 2019 3,400,000 3,774,510 Sacramento Power Authority Cogeneration Revenue Bonds Series 1995 6.00 2022 1,000,000 1,052,530 San Diego County Capital Asset Lease Certificate of Participation Series 1993 Inverse Floater (AMBAC Insured) 7.02 2007 3,200,000(f) 3,700,000 San Diego County Water Authority Refunding Certificate of Participation Series 1997A 4.75 2018 1,500,000 1,423,020 San Diego Regional Transportation Commission Sales Tax Pre-refunded Revenue Bonds Limited Tax Series 1989A 6.25 2008 5,030,000 5,181,806 San Joaquin County Certificate of Participation Jail & Sheriffs Operation Center (MBIA Insured) 6.75 2015 2,000,000 2,139,980 San Joaquin County Pre-refunded Certificate of Participation Human Services Facility Series 1989 (BIG Insured) 6.70 2009 3,500,000 3,701,285 San Jose Redevelopment Agency Merged Area Redevelopment Tax Allocation Bonds Series 1993 (MBIA Insured) 4.75 2024 3,055,000 2,879,002 San Jose Redevelopment Agency Merged Area Tax Allocation Bonds Series 1993 Inverse Floater (MBIA Insured) 6.61 2014 3,000,000(f) 3,112,500 San Mateo County Transit District Limited Tax Pre-refunded Bonds Series 1990A (MBIA Insured) 6.50 2020 1,500,000 1,546,275 San Ysidro School District General Obligation Bonds San Diego County Series 1997 (AMBAC Insured) 6.125 2021 1,000,000 1,145,350 Santa Clara County Mountain View Los Altos Union High School District Unlimited Tax General Obligation Bonds Series A 5.75 2015 1,200,000 1,267,812 Santa Cruz Certificate of Participation 8.375 2007 1,220,000 1,248,743 Southern California Home Financing Authority Single Family Mortgage Revenue Bonds 1990B (GNMA Insured) A.M.T. 7.75 2024 560,000 592,749 Southern California Public Power Authority Transmission Special Bonds 6.00 2012 2,700,000 2,901,447 South Tahoe Joint Powers Financing Authority Refunding Revenue Bonds Series 1995B 6.25 2020 2,700,000 2,857,248 State Department Water Resource Water System Revenue Bonds Central Valley Series L 5.50 2023 3,000,000 3,032,490 State Education Facility Authority Revenue Bonds Pomona College 6.00 2017 3,000,000 3,175,410 State Education Facility Authority Revenue Bonds Series 1997B 6.30 2021 1,000,000 1,063,750 State Health Facility Finance Authority Pre-refunded Revenue Bonds St. Joseph Health System Series 1989A 6.90 2014 3,500,000 3,713,360 State Housing Finance Agency Home Mortgage Revenue Bonds Series 1986B 6.90 2016 1,770,000 1,809,825 State Pollution Control Finance Authority Pollution Control Revenue Bonds Southern California Edison Series 1988A A.M.T. 6.90 2006 2,000,000 2,121,320 State Public Works Board Lease Revenue Bonds California Community Colleges Series 1994B 7.00 2019 2,000,000 2,342,760 State Public Works Board Lease Revenue Bonds Department of Corrections Substance Abuse Treatment Facility & State Prison at Corcoran Series 1996A (AMBAC Insured) 5.25 2021 1,870,000 1,871,216 State Public Works Board University of California Lease Pre-refunded Revenue Bonds Series 1990A 7.00 2015 2,250,000 2,463,660 State Rural Home Mortgage Financing Authority Single Family Mortgage Revenue Bonds Series 1997A-3 (GNMA & FNMA Insured) A.M.T. 6.25 2029 1,500,000 1,697,550 State University Refunding Revenue Bonds Series C (AMBAC Insured) 5.00 2023 2,000,000 1,940,780 State Unlimited Tax General Obligation Bonds (Secondary FGIC Insured) 4.75 2023 1,325,000 1,251,701 Statewide Community Development Authority Health Facilities Revenue Bonds Unihealth America Series 1993A Inverse Floater (AMBAC Insured) 7.46 2011 5,000,000(f) 5,868,750 Statewide Community Development Authority Revenue Certificate of Participation St. Joseph Health System Group 6.50 2015 5,500,000 6,275,060 Stockton Single Family Mortgage Revenue Bonds Series 1990A (GNMA Insured) A.M.T. 7.50 2023 110,000 119,464 University of Southern California Educational Facilities Authority Pre-refunded Revenue Bonds Series 1989B 6.75 2015 5,000,000 5,304,650 Upland Certificate of Participation Water System Refunding Bonds (FGIC Insured) 6.60 2016 1,000,000 1,098,860 Total municipal bonds (Cost: $215,332,990) $238,700,174
Short-term securities (5.3%) Issuer (d,h) Effective Amount Value(a) yield payable at maturity Municipal notes Irvine Ranch Water District (Bank of America) V.R. 04-01-33 5.00% $3,700,000 $ 3,700,000 Irvine Ranch Water District Series 1985 V.R. 10-01-10 5.00 200,000 200,000 Irvine Ranch Water District V.R. 09-02-15 3.50 1,370,000 1,370,000 08-01-16 5.00 600,000 600,000 09-02-21 5.00 800,000 800,000 Statewide Community Development Authority Certificate of Participation V.R. 06-01-26 4.85 2,800,000 2,800,000 Tustin Improvement Bonds 2nd Series 1995 V.R. 09-02-13 5.00 3,900,000 3,900,000 Total short-term securities (Cost $13,370,000) $ 13,370,000 Total investments in securities (Cost: $228,702,990)(i) $252,070,174
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 12-31-97 6-30-97 AAA 65% 61% AA 17 19 A 5 9 BBB 8 8 BB and below 5 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 Guaranty Insurance Company FGIC -- Financial Guarantee Insurance Corporation FNMA -- Federal National Mortgage Association FSA -- Financial Security Assurance GNMA -- Government National Mortgage Association MBIA -- Municipal Bond Investors Assurance (d) The following abbreviations are used in portfolio descriptions: A.M.T. -- Alternative Minimum Tax-- As of Dec. 31, 1997, the value of securities subject to alternative minimum tax represented 9.4% of net assets. V.R. -- Variable Rate (e) For those zero coupon bonds that become coupon paying at a future date, the interest rate disclosed represents the annualized effective yield from the date of acquisition to interest reset date disclosed. (f) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the same magnitude as, or in a multiple of, a decline (increase) in market short-term rates. Interest rate disclosed is the rate in effect on Dec. 31, 1997. Inverse floaters in the aggregate represent 6.9% of the Fund's net assets as of Dec. 31, 1997. (g) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition. (h) The Fund is entitled to receive principal amount from issuer or corporate guarantor, if indicated in parentheses, after a day or a week's notice. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on Dec. 31, 1997. (i) At Dec. 31, 1997, the cost of securities for federal income tax purposes was approximately $228,380,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation......................................$23,695,000 Unrealized depreciation...................................... (5,000) ------ Net unrealized appreciation..................................$23,690,000 See accompanying notes to investments in securities.
Investments in securities IDS Massachusetts Tax-Exempt Fund (Percentages represent value of Dec. 31, 1997 (Unaudited) investments compared to net assets) Municipal bonds (97.0%) Name of issuer and Coupon Maturity Principal Value(a) title of issue (b,c,d) rate year amount Bay Transit Authority Series A (Secondary CGIC Insured) 5.50 % 2021 $ 500,000 $ 508,265 Bay Transportation Authority General Transportation System Refunding Bonds Series 1992B 6.20 2016 1,500,000 1,716,990 Boston City Hospital Pre-refunded Revenue Bonds Series A (FHA Insured) 7.625 2021 1,000,000 1,105,580 Boston City Hospital Refunding Revenue Bonds Series B (FHA Insured) 5.75 2023 3,000,000 3,060,660 Boston General Obligation Bonds Series 1991A (MBIA Insured) 6.75 2011 500,000 551,470 Boston General Obligation Refunding Bonds Series 1993A (AMBAC Insured) 5.65 2009 1,500,000 1,598,850 Boston Industrial Development Financing Authority Revenue Bonds Massachusetts College of Pharmacy Series 1993A (Connie Lee Insured) 5.25 2026 1,000,000 991,120 Boston Water & Sewer Commission General Pre-refunded Revenue Bonds Senior Lien Series 1991A (FGIC Insured) 7.00 2018 1,000,000 1,118,950 Boston Water & Sewer Commission General Subordinate Revenue Bonds Series A (MBIA Insured) 6.00 2008 500,000 508,875 Commonwealth General Obligation Consolidated Loan Pre-refunded Bonds Series 1990A (FGIC Insured) 7.25 2009 500,000 542,655 Greater Lawrence Sanitary District North Andover General Obligation Bonds 8.50 2005 400,000 412,716 Haverhill City Unlimited Tax General Obligation Bonds Series 1997 (FGIC Insured) 5.00 2017 1,000,000 987,730 Health & Educational Facilities Authority Pre-refunded Revenue Bonds Beverly Hospital Series D (MBIA Insured) 7.30 2019 400,000 426,936 Health & Educational Facilities Authority Pre-refunded Revenue Bonds Lahey Clinic Medical Center Series A (MBIA Insured) 7.625 2018 500,000 519,455 Health & Educational Facilities Authority Pre-refunded Revenue Bonds Mount Auburn Hospital Series A (MBIA Insured) 7.875 2018 205,000 213,227 Health & Educational Facilities Authority Pre-refunded Revenue Bonds Northeastern University Series 1989C (AMBAC Insured) 7.10 2006 1,000,000 1,069,590 Health & Educational Facilities Authority Pre-refunded Revenue Bonds Northeastern University Series E (MBIA Insured) 6.55 2022 1,000,000 1,102,900 Health & Educational Facilities Authority Pre-refunded Revenue Bonds Stonehill College Series 1990D (AMBAC Insured) 7.70 2020 1,000,000 1,104,810 Health & Educational Facilities Authority Pre-refunded Revenue Bonds Wentworth Institute of Technology Series A (AMBAC Insured) 7.40 2010 750,000 818,003 Health & Educational Facilities Authority Refunding Revenue Bonds Beth Israel Hospital Series 1989E 7.00 2009-14 550,000 581,924 Health & Educational Facilities Authority Revenue Bonds Berkshire Health Systems Series A (MBIA Insured) 7.50 2008 500,000 523,605 Health & Educational Facilities Authority Revenue Bonds Berkshire Health Systems Series C 5.90 2011 1,000,000 1,027,480 Health & Educational Facilities Authority Revenue Bonds Boston College Series J (FGIC Insured) 6.625 2021 2,000,000 2,177,240 Health & Educational Facilities Authority Revenue Bonds Brigham & Women's Hospital Series C 6.75 2021 500,000 528,585 Health & Educational Facilities Authority Revenue Bonds Brigham & Women's Hospital Series 1991D 6.75 2024 1,000,000 1,101,560 Health & Educational Facilities Authority Revenue Bonds Cape Cod Health System Series A (Connie Lee Insured) 5.25 2021 2,500,000 2,479,675 Health & Educational Facilities Authority Revenue Bonds Charlton Memorial Hospital Series 1991B 7.25 2013 1,750,000 1,928,203 Health & Educational Facilities Authority Revenue Bonds Holyoke Hospital Series B 6.50 2015 1,000,000 1,061,600 Health & Educational Facilities Authority Revenue Bonds Melrose-Wakefield Hospital Series 1992B 6.375 2016 1,000,000 1,121,520 Health & Educational Facilities Authority Revenue Bonds New England Deaconess Hospital Series 1992D 6.625 2012 1,000,000 1,078,440 Health & Educational Facilities Authority Revenue Bonds Newton Wellesley Hospital Series 1991D (MBIA Insured) 7.00 2015 1,000,000 1,109,630 Health & Educational Facilities Authority Revenue Bonds North Adams Regional Hospital Series 1 6.625 2018 1,000,000 1,069,890 Health & Educational Facilities Authority Revenue Bonds South Shore Hospital Series 1992D (MBIA Insured) 6.50 2022 1,000,000 1,090,610 Health & Educational Facilities Authority Revenue Bonds Suffolk University Series B (Connie Lee Insured) 6.35 2022 2,495,000 2,711,342 Health & Educational Facilities Authority Revenue Bonds Valley Regional Health System Series C (Connie Lee Insured) 5.75 2018 1,000,000 1,045,080 Industrial Finance Agency Assumption College Revenue Bonds Series 1996 (Connie Lee Insured) 6.00 2026 1,000,000 1,078,380 Industrial Finance Agency Hampshire College Revenue Bonds Series 1997 5.80 2017 1,105,000 1,128,503 Industrial Finance Agency Pollution Control Refunding Revenue Bonds Eastern Edison Series 1993 5.875 2008 2,000,000 2,055,860 Industrial Finance Agency Resource Recovery Revenue Bonds Ogden Haverhill Series 1986A (AMBAC Insured) A.M.T. 7.375 2011 175,000 178,064 Industrial Finance Agency Resource Recovery Revenue Bonds SEMASS Series 1991A 9.00 2015 1,500,000 1,695,630 Industrial Finance Agency Revenue Bonds Museum of Science Series 1989 (FSA Insured) 7.30 2009 1,000,000 1,076,670 Leominster General Obligation Bonds (MBIA Insured) 7.50 2009 1,000,000 1,092,800 Mansfield General Obligation Bonds (AMBAC Insured) 6.70 2011 1,000,000 1,111,520 Municipal Wholesale Electric Power Supply System Pre-refunded Revenue Bonds Series 1992B 6.75 2017 1,395,000 1,563,237 Municipal Wholesale Electric Power Supply System Refunding Revenue Bonds Series B (MBIA Insured) 4.75 2011 1,750,000 1,723,453 Municipal Wholesale Electric Power Supply System Revenue Bonds Special Pars & Inflows (AMBAC Insured) 5.45 2018 1,600,000 1,615,328 Nantucket General Obligation Bonds 6.80 2011 1,000,000 1,113,800 New Bedford General Obligation Bonds Series 1995 (AMBAC Insured) 5.50 2015 700,000 726,887 North Andover General Obligation Bonds (MBIA Insured) 7.35 2008 310,000 343,012 North Attleborough Unlimited General Obligation Bonds Series 1997 (AMBAC Insured) 5.25 2017 1,675,000 1,700,175 Port Authority Revenue Bonds Series 1990A (FGIC Insured) A.M.T. 7.50 2020 1,000,000 1,086,840 Southeastern University Building Refunding Revenue Bonds Series A (AMBAC Insured) 5.75 2016 1,250,000 1,327,100 Southern Berkshire Regional School District Unlimited Tax General Obligation Pre-refunded Bonds (AMBAC Insured) 7.55 2010 1,000,000 1,097,340 State Education Loan Authority Educational Loan Revenue Bonds Issue E Series B (AMBAC Insured) A.M.T. 6.00 2012 915,000 985,409 State General Obligation Consolidated Loan Bonds Series 1991A (FGIC Insured) 6.00 2011 1,095,000 1,161,018 State Housing Finance Agency Single Family Housing Revenue Bonds Series 13 A.M.T. 7.95 2023 430,000 457,124 State Housing Finance Authority Residential Development Bonds Series 1992A (FNMA Insured) 6.875 2011 1,000,000 1,088,860 State Housing Finance Authority Single Family Mortgage Housing Revenue Bonds Series 4 7.375 2014 430,000 440,019 State Housing Finance Authority Single Family Mortgage Housing Revenue Bonds Series 7 A.M.T. 8.10 2020 245,000 251,573 State Industrial Finance Agency Assisted Living Facility Revenue Bonds Marina Bay LLC Series 1997 A.M.T. 7.50 2027 1,000,000 1,001,630 State Industrial Finance Agency Assisted Living Facility Revenue Bonds Newton Group Properties LLC Series 1997 A.M.T. 8.00 2027 1,160,000 1,187,828 State Turnpike Authority Metro Highway System Senior Lien Revenue Bonds Toll Road Series 1997A (MBIA Insured) 5.00 2037 1,000,000 966,730 State Water Resource Authority Revenue Bonds Series A (Secondary MBIA Insured) 5.50 2022 1,100,000 1,116,269 University of Massachusetts Building Authority Revenue Bonds Series A Escrowed to Maturity 7.50 2011 115,000 136,966 University of Massachusetts Building Authority Revenue Bonds Series A (FSA Insured) 7.50 2014 500,000 516,150 Water Resource Authority General Pre-refunded Revenue Bonds Series 1990A 7.625 2014 500,000 547,730 Water Resource Authority General Pre-refunded Revenue Bonds Series 1991A 6.50 2019 1,000,000 1,103,050 Water Resource Authority General Revenue Bonds Series 1993B (MBIA Insured) 5.00 2022 1,365,000 1,323,927 Worcester General Obligation Refunding Bonds Series 1995G (MBIA Insured) 5.30 2015 1,000,000 1,020,120 Total municipal bonds (Cost: $67,586,977) $74,014,168
Short-term security (2.1%) Issuer (d,e) Effective Amount Value(a) yield payable at maturity Municipal note State Health & Education Facility Authority V.R. 01-02-98 4.80% $1,600,000 $ 1,600,000 Total short-term security (Cost: $1,600,000) $ 1,600,000 Total investments in securities (Cost: $69,186,977)(f) $75,614,168
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 12-31-97 06-30-97 AAA 68% 64% AA 9 9 A 9 16 BBB 9 9 BB and below 4 2 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 FNMA -- Federal National Mortgage Association FSA -- Financial Security Assurance MBIA -- Municipal Bond Investors Assurance (d) The following abbreviations are used in portfolio descriptions: A.M.T. -- Alternative Minimum Tax-- As of Dec. 31, 1997, the value of securities subject to alternative minimum tax represented 6.8% of net assets. V.R. -- Variable Rate (e) The Fund is entitled to receive principal amount from issuer or corporate guarantor, if indicated in parentheses, after a day or a week's notice. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on Dec. 31, 1997. (f) At Dec. 31, 1997, the cost of securities for federal income tax purposes was approximately $69,187,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation.........................................$6,427,000 Unrealized depreciation.................................................-- Net unrealized appreciation.... ................................$6,427,000 See accompanying notes to investments in securities.
IDS Michigan Tax-Exempt Fund (Percentages represent value of Dec. 31, 1997 (Unaudited) investments compared to net assets) Municipal bonds (97.4%) Name of issuer and Coupon Maturity Principal Value(a) title of issue (b,c,d) rate year amount Auburn Hills Limited Tax General Obligation Street Improvement Bonds 6.00 % 2004 $ 200,000 $ 205,396 Battle Creek Calhoun County Downtown Development Authority Bonds Series 1994 7.65 2022 1,250,000 1,491,838 Battle Creek Downtown Development Authority Tax Allocation Refunding Revenue Bonds Series 1997 (MBIA Insured) 5.00 2017 1,000,000 980,500 Battle Creek Water Supply System Pre-refunded Revenue Bonds Series 1990B 6.375 2008-10 1,640,000 1,699,975 Buena Vista School District Saginaw County School Building & Site Unlimited Tax General Obligation Pre-refunded Bonds Series 1991 7.20 2016 1,500,000 1,671,585 Central Michigan University Revenue Bonds Series 1997 (FGIC Insured) 5.50 2026 750,000 771,840 Chippewa County Hospital Financial Authority Hospital Refunding Revenue Bonds Chippewa County War Memorial Hospital Series 1997B 5.625 2014 500,000 502,750 Chippewa Valley School District Unlimited Tax General Obligation Bonds (FGIC Insured) 5.00 2021 1,000,000 969,140 Comstock Park Public School Kent County Unlimited Tax General Obligation Pre-refunded Bonds Series 1989 6.00 2016 400,000 418,192 Comstock Park Public School Kent County Unlimited Tax General Obligation Pre-refunded Bonds Series 1989 6.875 2010 260,000 274,750 Detroit Downtown Development Authority Development Area Project 1 Junior Lien Tax Increment Refunding Bonds Series 1996D 6.50 2025 1,000,000 1,073,190 Detroit General Obligation Pre-refunded Bonds Distributable State Aid Series 1989 (AMBAC Insured) 7.20 2009 1,000,000 1,062,120 Detroit Sewer Disposal Revenue Bonds (FGIC Insured) 5.70 2023 2,000,000 2,065,120 Detroit Unlimited Tax General Obligation Pre-refunded Bonds Series 1988A 7.875 2008 700,000 721,091 Detroit Unlimited Tax General Obligation Pre-refunded Bonds Series A 7.25 2009 1,000,000 1,060,470 Detroit Unlimited Tax General Obligation Bonds Series 1995A 6.80 2015 1,000,000 1,158,720 Detroit Water Supply System Pre-refunded Revenue Bonds Series 1988 (MBIA Insured) 7.875 2008 400,000 416,136 Detroit Unlimited Tax General Obligation Bonds Series A (FGIC Insured) 5.50 2016 500,000 515,970 Detroit Water Supply System Second Lien Revenue Bonds Series 1995A (MBIA Insured) 5.50 2025 1,500,000 1,537,845 East Lansing School District School Building & Site Unlimited Tax General Obligation Pre-refunded Bonds Series 1991 6.625 2014 1,000,000 1,094,660 Farmington Hills Hospital Finance Authority Revenue Bonds Botsford General Hospital Series 1992A (MBIA Insured) 6.50 2022 1,500,000 1,627,725 Ferris State University Board of Trustees General Revenue & Refunding Bonds Series 1995 (MBIA Insured) 5.25 2020 1,000,000 998,600 Forest Hills School District Unlimited Tax General Obligation Pre-refunded Bonds 7.375 2015 1,000,000 1,082,420 Frenchtown Resort Drainage District Monroe County Drain Pre-refunded Revenue Bonds Series 1987 7.50 2011-12 615,000 655,916 Garden City School District Authority Pre-refunded Revenue Bonds 7.80 2010 305,000 318,176 Genesee County General Obligation Bonds Sewer Disposal System Series A (AMBAC Insured) 5.40 2015 1,400,000 1,441,426 Grand Ledge Public Schools Unlimited Tax General Obligation Refunding Bonds Counties of Eaton, Clinton & Ionia Series 1995 (MBIA Insured) 5.375% 2024 $2,000,000 $2,022,520 Grand Rapids Community College Limited Tax General Obligation Bonds Series 1996 (MBIA Insured) 5.375 2019 1,000,000 1,012,980 Grand Rapids Tax Increment Revenue Bonds Series 1994 (MBIA Insured) 6.875 2024 380,000 432,767 Grand Rapids Water Supply System Improvement Pre-refunded Revenue Bonds Series 1990 (FGIC Insured) 7.25 2020 1,250,000 1,351,200 Hillman Community Schools General Obligation Bonds Series 1997 (FGIC Insured) 5.25 2023 1,000,000 1,000,660 Inkster School District Unlimited Tax General Obligation Pre-refunded Bonds (AMBAC Insured) 7.00 2018 450,000 485,838 Isoco County Water Supply System Limited Tax General Obligation Bonds (AMBAC Insured) 5.50 2008-10 575,000 588,180 Kent County Hospital Pre-refunded Revenue Bonds Butterworth Hospital Series 1989A 7.25 2013 500,000 527,225 Lake Orion School District General Obligation Bonds (AMBAC Insured) 5.50 2020 1,000,000 1,024,760 Lincoln Park School Distict Wayne County School Building & Site Unlimited Tax General Obligation Bonds (FGIC Insured) 5.90 2026 1,000,000 1,069,390 Marquette Hospital Finance Authority Pre-refunded Revenue Bonds Marquette General Hospital Series 1989C 7.50 2007-19 825,000 876,645 Monroe County Pollution Control Revenue Bonds Detroit Edison Fermi Plants Series 1990I (FGIC Insured) A.M.T. 7.65 2020 1,000,000 1,094,670 Monroe County Pollution Control Revenue Bonds Detroit Edison Fermi 2 Plants Series CC (AMBAC Insured) A.M.T. 7.50 2019 1,750,000 1,896,877 Muskegon Hospital Finance Authority Refunding Revenue Bonds Hackley Hospital Series 1988A 8.00 2008 400,000 409,144 Northville Public Schools Unlimited Tax General Obligation Bonds Series 1991B 7.00 2008 1,500,000 1,659,345 Ovid-Elsie School District Unlimited Tax General Obligation Bonds (Secondary MBIA Insured) 5.60 2021 1,000,000 1,036,690 Redford General Obligation Bonds (MBIA Insured) 5.25 2016 1,450,000 1,465,834 Richmond Limited Obligation Refunding Revenue Bonds K mart Series A 6.625 2007 530,000 563,586 Rochester Hill Unlimited Tax General Obligation Bonds Series 1990A 6.00 2009-10 735,000 757,733 Rockford Public Schools Kent County Unlimited Tax General Obligation Pre-refunded Revenue Bonds 7.375 2019 1,000,000 1,081,020 Romulus Township School District Unlimited Tax General Obligation Refunding Bonds (FGIC Insured) 5.75 2022 2,500,000 2,602,850 Schoolcraft Community School District Kalamazoo County School Building & Site Unlimited General Obligation Bonds Series 1996 (FGIC Insured) 5.375 2026 1,000,000 1,012,000 South Lake District Unlimited Tax General Obligation Pre-refunded Bonds 6.80 2010 355,000 390,372 South Redford School District Unlimited General Obligation Bonds Series 1996 (FGIC Insured) 5.50 2022 1,000,000 1,027,090 State Building Authority Refunding Revenue Bonds Series 1991I 6.25 2020 2,200,000 2,356,706 State Hospital Finance Authority Hospital Pre-refunded Revenue Bonds Detroit Medical Center Series 1988A 8.125 2012 310,000 324,300 State Hospital Finance Authority Hospital Pre-refunded Revenue Bonds Detroit Medical Center Series 1988B 8.00 2008 500,000 522,685 State Hospital Finance Authority Hospital Pre-refunded Revenue Bonds McLaren Obligated Group Series 1991A 7.50 2021 1,750,000 1,979,985 State Hospital Finance Authority Hospital Refunding Revenue Bonds Detroit Medical Center Series 1988A 8.125 2012 90,000 93,929 State Hospital Finance Authority Hospital Refunding Revenue Bonds Detroit Medical Center Series A 6.25 2013 1,200,000 1,284,720 State Hospital Finance Authority Hospital Refunding Revenue Bonds Sinai Hospital of Greater Detroit Series 1995 6.70 2026 1,000,000 1,108,330 State Hospital Finance Authority Pre-refunded Revenue Bonds Henry Ford Hospital Series 1990A 7.00 2010 1,000,000 1,087,320 State Hospital Finance Authority Pre-refunded Revenue Bonds Oakwood Hospital Group Series 1990A (FGIC Insured) 7.10 2018 1,000,000 1,089,670 State Hospital Finance Authority Revenue Bonds Central Michigan Community Hospital 6.25 2027 1,000,000 1,056,000 State Hospital Finance Authority Revenue Bonds Presbyterian Villages of Michigan Obligated Group Series 1995 6.50 2025 1,000,000 1,061,910 State Hospital Finance Authority Revenue Bonds Presbyterian Villages of Michigan Obligated Group Series 1997 6.375 2025 700,000 739,396 State Hospital Finance Authority Revenue Bonds St. Johns Hospital & Medical Center (AMBAC Insured) 5.25 2026 1,400,000 1,389,696 State Public Power Agency Belle River Refunding Revenue Bonds Series A 5.25 2018 1,000,000 995,100 State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds Detroit Edison Series 1990BB (MBIA Insured) 7.00 2008 1,000,000 1,212,550 State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds Detroit Edison Series 1992BB (FGIC Insured) 6.50 2016 1,500,000 1,627,725 State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds Ford Motor Series 1991A 7.10 2006 1,650,000 1,949,706 State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds Oxford Institute Escrowed to Maturity 7.875 2005 150,000 172,872 State Strategic Fund Limited Tax Obligation Revenue Bonds Great Lakes Pulp & Fibre A.M.T. 10.25 2016 1,000,000(f) 555,000 State Trunk Line Bonds Series A (FGIC Insured) 5.75 2020 1,065,000 1,116,163 State University Revenue Bonds Series A 5.50 2022 560,000 564,732 Taylor Tax Increment Finance Authority Bonds Series 1989A (MBIA Insured) 6.00 2007-09 1,205,000 1,237,402 Troy City Downtown Development Authority County of Oakland Development Bonds Series 1995A Asset Guaranty 6.375 2018 1,500,000 1,658,760 Van Buren Township Tax Increment Revenue Bonds Series 1994 8.40 2016 1,000,000 1,153,940 Wayne County Airport Revenue Bonds Detroit Metropolitan Airport Series 1990A (AMBAC Insured) A.M.T. 7.00 2020 1,080,000 1,170,396 Total municipal bonds (Cost: $71,303,898) $78,713,920
Short-term security (0.2%) Issuer (d,e) Effective Amount Value(a) yield payable at maturity Municipal note State Strategic Fund Consumer Power Company Series 1988A V.R. 04-15-18 4.95% $200,000 $ 200,000 Total short-term security (Cost: $200,000) $ 200,000 Total investments in securities (Cost: $71,503,898)(g) $78,913,920
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 12-31-97 06-30-97 AAA 77% 74% AA 8 11 A 6 5 BBB 7 9 BB and below 2 1 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 FGIC -- Financial Guarantee Insurance Corporation MBIA -- Municipal Bond Investors Assurance (d) The following abbreviations are used in portfolio descriptions: A.M.T. -- Alternative Minimum Tax-- As of Dec. 31, 1997, the value of securities subject to alternative minimum tax represented 5.8% of net assets. V.R. -- Variable Rate (e) The Fund is entitled to receive principal amount from issuer or corporate guarantor, if indicated in parentheses, after a day or a week's notice. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on Dec. 31, 1997. (f) Non-income producing. Item identified is in default as to payment of interest and/or principal. (g) At Dec. 31, 1997, the cost of securities for federal income tax purposes was approximately $71,455,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation............................................$7,904,000 Unrealized depreciation............................................ (445,000) Net unrealized appreciation........................................$7,459,000
IDS Minnesota Tax-Exempt Fund (Percentages represent value of Dec. 31, 1997 (Unaudited) investments compared to net assets) Municipal bonds (99.0%) Name of issuer and Coupon Maturity Principal Value(a) title of issue (b,c,d) rate year amount Anoka County General Obligation Capital Improvement Revenue Bonds Series 1989B 7.00 % 2007-10 $7,950,000 $8,194,939 Anoka County Resource Recovery Revenue Bonds Northern States Power Series 1985 7.15 2008 3,750,000 3,999,787 Becker Pollution Control Revenue Bonds Northern States Power Sherburne County Generating Station Units 1 & 2 Series 1987A 7.25 2005 2,000,000 2,005,620 Becker Solid Waste Disposal Facility Revenue Bonds Liberty Paper Series 1994B A.M.T. 9.00 2015 3,825,000 4,119,066 Bemidji Hospital Facilities 1st Mortgage Revenue Bonds North Country Health Services Series 1991 7.00 2021 1,755,000 1,954,842 Bemidji Independent School District 31 Unlimited Tax General Obligation Bonds Series 1998 5.00 2019 4,000,000 3,943,040 Bloomington Community Development Refunding Revenue Note 24th Avenue Motel 8.50 2005 1,739,023(h) 1,747,719 Brooklyn Center Tax Credit Investor Refunding Revenue Bonds Four Courts Apartment Series 1995B A.M.T. 7.58 2009 2,450,000 2,499,710 Burnsville Multi-family Housing Refunding Revenue Bonds Summit Park Apartments Series 1993 (FHA Insured) 6.00 2033 4,000,000 4,106,760 Columbia Heights Multi-family Housing Revenue Bonds Crestview Lutheran Home Royce Place Series 1991 10.00 2032 550,000 597,586 Columbia Heights Multi-family Housing Revenue Bonds Crestview Lutheran Home Royce Place Series 1991 (FHA Insured) 7.75 2032 2,720,000 2,864,758 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 2,212,320 Duluth Housing & Redevelopment Authority 1st Mortgage Revenue Bonds Lakeshore Lutheran Home 8.25 2009 125,000 125,276 Duluth Hospital Facilities St. Lukes Hospital Pre-refunded Revenue Bonds Series 1988 9.00 2018 2,500,000 2,592,675 Eden Prairie Housing Development Refunding Revenue Bonds Eden Commons Series 1990 (FHA Insured) 8.25 2025 6,155,000 6,357,192 Edina Hospital System Revenue Bonds Fairview Hospital & Health Care Services Series 1989A 7.125 2019 2,500,000 2,662,425 Edina Multi-family Housing Revenue Bonds Walker Assisted Living Series 1991 9.00 2031 6,670,000 7,409,836 Faribault Rice & Goodhue County Independent School District 656 General Obligation School Building Bonds Series 1995 (FSA Insured) 5.75 2015 6,900,000 7,240,929 Faribault Single Family Mortgage Refunding Revenue Bonds Series 1991A 7.50 2011 1,425,000 1,514,932 Fergus Falls Health Care Facilities Revenue Bonds LRHC Long-Term Care Facility Series 1995 6.50 2025 1,500,000 1,614,585 Harmony Multi-family Housing Refunding Revenue Bonds Zedekah Foundation Series 1997A 5.95 2020 1,240,000 1,273,492 Hennepin County Lease Revenue Certificate of Participation Series 1991 6.80 2017 7,250,000 7,911,345 Hopkins Revenue Bonds Blake School 6.70 2024 3,120,000 3,532,994 Hubbard County Solid Waste Disposal Revenue Bonds Potlatch Series 1989 A.M.T. 7.375 2013 5,610,000 5,951,705 International Falls Solid Waste Disposal Revenue Bonds Boise Cascade Series 1990 A.M.T. 7.75 2015 4,000,000 4,215,720 Little Canada Multi-family Housing Revenue Bonds Housing Alternatives Development Series 1997A 6.25 2027 1,000,000 1,001,400 Little Canada Multi-family Housing Revenue Bonds Provinces of Little Canada Series 1996 A.M.T. 7.00 2027 3,870,000 4,021,046 Mahtomedi Multi-family Housing Briarcliff Revenue Bonds A.M.T. 7.35 2036 2,270,000 2,360,210 Maplewood Care Institute Series 1994 7.75 2024 3,830,000 4,163,019 Maplewood Multi-family Housing Carefree Cottages of Maplewood III Refunding Revenue Bonds Series 1995 A.M.T. 7.20 2032 2,900,000 2,970,673 Maplewood Multi-family Housing Revenue Bonds Maplewood (FHA Insured) A.M.T. 7.75 2021 2,030,000 2,040,921 Minneapolis & St. Paul Housing & Redevelopment Authority Health Care System Revenue Bonds Healthspan Series 1993 (AMBAC Insured) 4.75 2018 13,500,000 12,813,525 Minneapolis & St. Paul Housing Board Multi-family Mortgage Revenue Bonds Collateral Mortgage Revenue Loan Riverside Plaza Series 1988 (GNMA Insured) A.M.T. 8.25 2030 3,945,000 4,104,812 Minneapolis Community Development Agency Supported Development Limited Tax General Obligation Bonds Common Bond Fund Series 1997-97A 5.50 2012 250,000 254,193 Minneapolis Community Development Agency Supported Development Limited Tax Revenue Bonds Common Bond Fund 5th Series 1997 5.70 2027 680,000 697,048 Minneapolis Community Development Agency Supported Development Limited Tax Revenue Bonds Common Bond Fund Series 1996-01 6.00 2011 980,000 1,013,271 Minneapolis General Obligation Bonds Sports Arena Series 1996 5.20 2024 4,940,000 4,974,728 Minneapolis Hospital Facility Pre-refunded Revenue Bonds Lifespan Incorporated Series 1989A 7.00 2014 5,000,000 5,368,500 Minneapolis Nursing Home Revenue Bonds Walker Cityview & Southview Series 1992 8.50 2022 5,405,000 5,998,631 Minneapolis Special School District 1 Certificates of Participation Series 1997A (MBIA Insured) 5.375 2017 2,400,000 2,455,968 Minnetonka Multi-family Housing Refunding Revenue Bonds Cedar Hill West (FHA Insured) 7.75 2026 5,460,000 5,677,854 Minnetonka Multi-family Housing Revenue Bonds The Cedar Hills Series 1985 7.50 2017 500,000 519,905 Minnetonka Senior Housing Revenue Bonds Westridge 6.75 2017 650,000 667,245 Minnetonka Senior Housing Revenue Bonds Westridge 7.00 2027 500,000 514,650 New Brighton Tax Credit Investor Revenue Bonds Polynesian Village Apartments Series 1995B A.M.T. 7.75 2009 2,355,000 2,428,900 North St. Paul General Obligation School Bonds 5.125 2025 6,310,000 6,295,929 Northern Municipal Power Agency Electric System Pre-refunded Revenue Bonds Series 1989A (AMBAC Insured) 7.40 2018 1,000,000 1,055,270 Northern Municipal Power Agency Electric System Pre-refunded Revenue Bonds Series 1989B (AMBAC Insured) 7.40 2018 1,800,000 1,891,818 Northern Municipal Power Agency Electric System Refunding Revenue Bonds Series 1989A 7.25 2016 5,475,000 5,746,889 Owatanna Public Utilities Pre-refunded Revenue Bonds Series 1991 6.75 2016 1,000,000 1,076,430 Plymouth Multi-family Housing Revenue Bonds Harbor Lane Apartments Series 1993 (Asset Guaranty Insured) A.M.T. 5.90 2013 2,325,000 2,394,053 Richfield Independent School District 280 Unlimited Tax General Obligation School Building Bonds Series 1993C Inverse Floater (FGIC Insured) 6.275 2010 3,300,000(f) 3,436,125 Richfield Independent School District 280 Unlimited Tax General Obligation School Building Bonds Series 1993C Inverse Floater (FGIC Insured) 6.375 2012 2,510,000(f) 2,610,400 Richfield Multi-family Housing Refunding Revenue Bonds Village Shores Apartments Series 1996 7.625 2031 2,980,000 3,082,154 Robbinsdale Hospital Pre-refunded Revenue Bonds North Memorial Medical Center Series 1989 (AMBAC Insured) 7.375 2019 2,200,000 2,320,164 Robbinsdale Multi-family Housing Revenue Bonds Series 1996A 7.35 2031 3,260,000 3,323,374 Rochester Health Care Facility Revenue Bonds Mayo Foundation Series A 4.95 2019 5,000,000 4,800,350 Rochester Multi-family Housing Development Revenue Bonds Civic Square Series 1991 (FHA Insured) A.M.T. 7.45 2031 4,370,000 4,663,970 St. Cloud Certificates of Participation 5.90 2017 400,000 406,060 St. Cloud Hospital Facility Refunding Revenue Bonds Series C (AMBAC Insured) 5.30 2020 1,515,000 1,516,773 St. Cloud Hospital Facility Revenue Bonds St. Cloud Hospital Series 1990B (AMBAC Insured) 7.00 2020 5,000,000 5,549,900 St. Cloud Unlimited Tax General Obligation Bonds Series 1998A (FGIC Insured) 5.00 2020-24 2,180,000 2,133,448 St. Louis Park Health Care Facilities Pre-refunded Revenue Bonds Park Nicollet Medical Center Series 1990A 9.25 2020 4,000,000 4,472,640 St. Louis Park Health Care Facilities Pre-refunded Revenue Bonds Park Nicollet Medical Center Series 1991A 8.625 2021 2,000,000 2,254,240 St. Louis Park Health Care Facilities Revenue Bonds Healthsystem Minnesota Obligated Group Series 1993 (AMBAC Insured) 5.20 2023 5,000,000 4,923,650 St. Louis Park Health Care Facilities Revenue Bonds Healthsystem Minnesota Obligated Group Series 1993B Inverse Floater (AMBAC Insured) 5.875 2013 7,000,000(f) 7,122,500 St. Louis Park Multi-family Housing Refunding Revenue Bonds Park Blvd Towers Series 1996A 7.00 2031 3,955,000 4,091,764 St. Paul & Minneapolis Housing & Redevelopment Authority Health Care Facility Revenue Bonds Group Health Plan Series 1992 6.75 2013 10,500,000 11,577,405 St. Paul Housing & Development Bonds Highland Retirement (FHA Insured) 7.01 2026 5,210,000(i) 5,157,900 St. Paul Housing & Redevelopment Authority Health Care Facility Revenue Bonds Lyngblomsten Care Center Series 1993A 7.125 2006-17 2,730,000 2,894,863 St. Paul Housing & Redevelopment Authority Health Care Facility Multi-family Rental Housing Revenue Bonds Lynblomsten Series 1993B 7.00 2024 1,870,000 1,898,013 St. Paul Housing & Redevelopment Authority Sales Tax Revenue Bonds Civic Center (Secondary MBIA Insured) 5.55 2023 7,500,000 7,789,575 St. Paul Housing & Redevelopment Authority Single Family Mortgage Refunding Revenue Bonds Middle Income Phase II Mortgage Backed (FNMA Insured) 6.80 2028 3,460,000 3,734,759 St. Paul Port Authority Unlimited Tax General Obligation Bonds 5.125 2024 4,770,000 4,773,387 Shoreview Senior Housing Revenue Bonds Series 1996 7.25 2026 2,700,000 2,742,174 Southeastern Minnesota Multi-county Housing & Redevelopment Authority Housing Development Winona County Unlimited Tax General Obligation Bonds Series 1997 5.35 2028 1,170,000 1,179,980 Southern Minnesota Municipal Power Agency Power Supply System Revenue Bonds Zero Coupon (MBIA Insured) 6.08 2024 5,150,000(g) 1,328,443 Southern Minnesota Municipal Power Agency Power Supply System Revenue Bonds Zero Coupon Series 1994A (MBIA Insured) 6.67 2019 19,500,000(g) 6,581,055 Southern Minnesota Municipal Power Agency Power Supply System Revenue Bonds Zero Coupon Series 1994A (MBIA Insured) 6.88 2022 12,000,000(g) 3,435,480 Southern Minnesota Municipal Power Agency Pre-refunded Bonds Series 1988A-B 8.125 2018 2,315,000 2,361,300 Southern Minnesota Municipal Power Agency Pre-refunded Revenue Bonds Series A Escrowed to Maturity (Secondary MBIA Insured) 5.75 2018 1,970,000 2,101,926 Southern Minnesota Municipal Power Agency Revenue Bonds (Secondary MBIA Insured) 4.75 2016 7,165,000 6,937,511 Southern Minnesota Municipal Power Agency Un-refunded Balance Power Revenue Bonds Series A 5.75 2018 1,895,000 1,945,445 Spring Park Health Care Facility Revenue Bonds Twin Birch Health Care Center Series 1991 8.25 2011 1,780,000 1,927,740 State Agricultural & Economic Development Board Health Care System Fairview Hospital & Healthcare Service Series 1997A (MBIA Insured) 5.75 2026 2,000,000 2,118,240 State Agricultural & Economic Development Board Hospital Revenue Bonds Evangelical Lutheran Good Samaritan Society Series 1997 5.15 2022 3,000,000 2,950,230 State General Obligation Various Purpose Pre-refunded Bonds Series 1990 7.00 2009 6,250,000 6,597,313 State General Obligation Various Purpose Pre-refunded Bonds Series 1991 6.70 2011 8,000,000 8,689,040 State Higher Education Facilities Authority Augsburg College Mortgage Revenue Bonds Series 4-F1 6.25 2023 1,750,000 1,877,943 State Higher Education Facilities Authority MacAlester College Revenue Bonds 4th Series 1997J 5.55 2017 1,000,000 1,031,810 State Higher Education Facility Authority College Revenue Bonds University of St. Thomas 4th Series 1997P 5.40 2023 580,000 584,947 State Higher Education Facility Authority Mortgage Pre-refunded Revenue Bonds St. Mary's College Series 2-M 8.375 2017 1,000,000 1,055,690 State Housing Facility Authority Housing Finance Agency Housing Development Single Family Mortgage Bonds Series B 7.25 2016 305,000 309,596 State Housing Finance Agency Single Family Mortgage Bonds Series 1989A A.M.T. 8.00 2029 1,165,000 1,206,066 State Housing Finance Agency Single Family Mortgage Bonds Series 1990A A.M.T. 7.95 2022 3,015,000 3,191,619 State Housing Finance Agency Single Family Mortgage Bonds Series 1991A A.M.T. 7.45 2022 3,470,000 3,675,181 State Housing Finance Agency Single Family Mortgage Bonds Series 1992A 6.95 2016 2,830,000 3,008,516 State Housing Finance Agency Single Family Mortgage Revenue Bonds Series 1997D A.M.T. 5.85 2019 3,000,000 3,103,320 State Housing Finance Agency Single Family Mortgage Revenue Bonds Series L A.M.T. 6.70 2020 1,025,000 1,092,148 State Public Facilities Authority Water Pollution Control Revenue Bonds Series 1989A 7.00 2009 7,850,000 8,419,203 State University Board of Regents General Obligation Bonds Series 1993A Inverse Floater 5.72 2003 5,000,000(f) 5,200,000 State University Board of Regents General Obligation Bonds Series 1996A 5.50 2021 12,500,000 13,286,625 State University Board of Regents General Obligation Pre-refunded Bonds Series 1989A 6.00 2011 4,625,000 4,817,400 State University Board State University System Pre-refunded Revenue Bonds Series 1989A (MBIA Insured) 7.40 2019 2,250,000 2,364,030 Vadnais Heights Multi-family Housing Cottages of Vadnais Heights Refunding Revenue Bonds Series 1995 A.M.T. 7.00 2031 3,180,000 3,255,811 Vadnais Heights Multi-family Housing Cottages of Vadnais Heights Tax Credit Revenue Bonds Series 1997 A.M.T. 7.00 2009 1,080,000 1,092,377 Washington County General Obligation Capital Improvement Bonds Series 1989A 7.00 2009-10 4,425,000 4,561,334 Washington County Housing & Redevelopment Authority Woodbury Multi-family Housing Refunding Revenue Bonds Series 1996 6.95 2023 1,970,000 2,019,821 Western Minnesota Municipal Power Agency Revenue Bonds Escrowed to Maturity (AMBAC Insured) 6.75 2016 5,935,000 6,427,190 Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds Series A (Secondary MBIA Insured) 5.50 2015 11,250,000 11,253,250 White Bear Lake Industrial Development Revenue Bonds Taylor Series 1988A A.M.T. 8.75 2008 2,250,000 2,356,290 Total municipal bonds (Cost: $371,435,447) $403,775,599
Short-term security (0.5%) Issuer (d,e) Effective Amount Value(a) yield payable at maturity Municipal notes Cohasset Revenue Bonds Minnesota Power & Light V.R.D.N. Series B 06-01-13 5.25% $ 200,000 $ 200,000 Duluth Health Facilities Revenue Bonds V.R. 06-01-19 5.25 1,300,000 1,300,000 Minneapolis & St. Paul Housing & Redevelopment Authority Health Care Revenue Bonds V.R. Series B 08-15-25 5.30 500,000 500,000 Total short-term securities (Cost: $2,000,000) $ 2,000,000 Total investments in securities (Cost: $373,435,447)(j) $405,775,599
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 12-31-97 6-30-97 AAA 46% 44% AA 22 22 A 12 13 BBB 5 9 BB and below 15 12 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 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) The following abbreviations are used in portfolio descriptions: A.M.T. -- Alternative Minimum Tax-- As of Dec. 31, 1997, the value of securities subject to alternative minimum tax represented 15.0% of net assets. V.R. -- Variable Rate V.R.D.N. -- Variable Rate Demand Note (e) The Fund is entitled to receive principal amount from issuer or corporate guarantor, if indicated in parentheses, after a day or a week's notice. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on Dec. 31, 1997. (f) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the same magnitude as, or in a multiple of, a decline (increase) in market short-term rates. Interest rate disclosed is the rate in effect on Dec. 31, 1997. Inverse floaters in the aggregate represent 4.5% of the Fund's net assets as of Dec. 31, 1997. (g) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition. (h) Identifies issues considered to be illiquid as to their marketability (see Note 1 to the financial statements.) Information concerning such security holdings at Dec. 31, 1997 is as follows: Security Acquisition Purchase date cost Bloomington Community Development Refunding Revenue Note 24th Avenue Motel 3-31-88 $1,758,382 (i) Non-income producing. Item identified is in default as to payment of interest and/or principal. (j) At Dec. 31, 1997, the cost of securities for federal income tax purposes was approximately $372,941,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation...........................................$32,858,000 Unrealized depreciation........................................... (23,000) Net unrealized appreciation.......................................$32,835,000 See accompanying notes to investments in securities.
IDS New York Tax-Exempt Fund Dec. 31, 1997 (Unaudited) (Percentages represent value of investments compared to net assets) Municipal bonds (97.0%) Name of issuer and Coupon Maturity Principal Value(a) title of issue (b,c,d) rate year amount Albany County Airport Authority Revenue Bonds Series 1997 (FSA Insured) A.M.T. 5.50 % 2019 $ 250,000 $ 256,385 Broome County Certificates of Partication Public Safety Facility Series 1994 (MBIA Insured) 5.25 2022 2,650,000 2,642,553 Buffalo Municipal Water Agency Authority Water System Revenue Bonds Series 1995 (FGIC Insured) 5.00 2025 1,000,000 976,630 Buffalo School Serial Bonds Series 1997B (AMBAC Insured) 5.375 2016 500,000 513,985 Erie County Unlimited Tax General Obligation Bonds Series B (FGIC Insured) 5.50 2025 700,000 719,194 Erie County Water Authority Fourth Resolution Water Refunding Revenue Bonds Zero Coupon Series 1992 (AMBAC Insured) 7.30 2017 1,215,000(e) 292,268 Erie County Water Authority Water Works System Revenue Bonds Series 1990A Escrowed to Maturity (AMBAC Insured) 6.00 2008 1,765,000 1,955,443 Fallsburg Sullivan County Unlimited Tax General Obligation Improvement Pre-refunded Bonds Series 1991 7.05 2011-14 1,300,000 1,445,002 Great Neck North Water Authority Water System Pre-refunded Revenue Bonds Series 1989A 6.00 2020 1,415,000 1,468,600 Metropolitan Transportation Authority Commuter Facilities Service Contract Refunding Bonds 5th Series 1987 6.50 2016 1,775,000 1,905,391 Metropolitan Transportation Authority Commuter Facilities Service Contract Refunding Bonds Series 1987B 5.125 2024 1,000,000 983,630 Monroe County Utility General Obligation Pre-refunded Bonds Water Improvement System 7.10 2008-09 1,000,000 1,049,410 Municipal Assistance Troy New York General Revenue Bonds Series 1996A (MBIA Insured) 5.00 2022 1,250,000 1,224,288 New York & New Jersey Port Authority Special Obligation Revenue Bonds KIAC Partners Series 4 A.M.T. 6.75 2019 1,500,000 1,660,620 New York City General Obligation Bonds Series 1995B 7.00 2016 1,500,000 1,707,135 New York City General Obligation Bonds Series J 5.875 2019 1,000,000 1,040,550 New York City Industrial Development Agency Civil Facility Lease Revenue Bonds Series 1997 5.80 2016 1,000,000 1,034,280 New York City Industrial Development Agency Civil Facility Lease Revenue Bonds Series 1997 (MBIA Insured) 5.25 2017-27 2,000,000 2,011,920 New York City Industrial Development Agency Civil Facility Revenue Bonds Series 1993 5.375 2023 2,000,000 2,000,620 New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds Series B Inverse Floater (MBIA Insured) 6.27 2009 2,000,000(f) 2,095,000 New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds Series B (MBIA Insured) 5.75 2026 500,000 525,660 New York City Unlimited Tax General Obligation Bonds Series 1996G 5.75 2017 1,500,000 1,548,570 New York City Water Finance Authority Water & Sewer System Pre-refunded Revenue Bonds Series A (FGIC Insured) 6.75 2014 1,185,000 1,250,045 New York City Water Finance Authority Water & Sewer System Revenue Bonds Series A (FGIC Insured) 6.75 2014 565,000 596,013 State Dormitory Authority City University System Consolidated 3rd Resolution Revenue Bonds 2nd Series 1994 (MBIA Insured) 6.25 2019 1,500,000 1,642,110 State Dormitory Authority City University System Revenue Bonds Series 1993A 5.75 2013 3,000,000 3,254,220 State Dormitory Authority College Revenue Bonds New York Law School Series 1997 (AMBAC Insured) 5.00 2017 625,000 612,044 State Dormitory Authority College Revenue Bonds Series 1996 (AMBAC Insured) 5.25 2016 1,140,000 1,158,707 State Dormitory Authority Nursing Home Revenue Bonds Frances Schervier Home Series 1997 Asset Guaranty 5.50 2017 1,000,000 1,016,200 State Dormitory Authority Revenue Bonds Culinary Institute of America Series 1997 (MBIA Insured) 5.00 2017 1,000,000 986,520 State Dormitory Authority Revenue Bonds NYACK Hospital Series 1996 6.25 2013 1,000,000 1,063,330 State Dormitory Authority State University Education Facility Cooper Union Insured College Revenue Bonds Series 1996 (AMBAC Insured) 5.375 2020 860,000 871,369 State Dormitory Authority State University Education Facility Pre-refunded Revenue Bonds Series 1990A 7.70 2012 1,750,000 1,927,730 State Dormitory Authority State University Education Facility Refunding Revenue Bonds Series 1990B 7.50 2011 1,900,000 2,337,988 State Dormitory Authority State University Education Facility Revenue Bonds (Secondary AMBAC Insured) 5.25 2015 1,000,000 1,041,750 State Dormitory Authority State University Education Facility Revenue Bonds (Secondary AMBAC Insured) 5.50 2019 2,000,000 2,148,340 State Energy Research & Development Authority Electric Facility Revenue Bonds Consolidated Edison Series 1986A A.M.T. 7.50 2021 1,750,000 1,767,500 State Energy Research & Development Authority Electric Facility Revenue Bonds Consolidated Edison Series 1989A A.M.T. 7.75 2024 1,000,000 1,017,880 State Energy Research & Development Authority Electric Facility Revenue Bonds Consolidated Edison Series 1990A A.M.T. 7.50 2025 5,000,000 5,270,950 State Energy Research & Development Authority Gas Facilities Industrial Development Revenue Bonds Series 1996 (MBIA Insured) 5.50 2021 2,000,000 2,058,900 State Energy Research & Development Authority Pollution Control Refunding Revenue Bonds Rochester Gas & Electric (MBIA Insured) A.M.T. 6.50 2032 2,500,000 2,728,050 State Energy Research & Development Authority Solid Waste Development Revenue Bonds State Gas & Electric Company Series A (MBIA Insured) A.M.T. 5.70 2028 3,000,000 3,096,180 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 3,287,970 State Local Government Assistance Bonds Series C 5.50 2022 1,500,000 1,512,285 State Local Government Assistance Pre-refunded Bonds Series 1991A 7.00 2016 4,000,000 4,427,160 State Medical Care Facility Finance Agency Hospital & Nursing Home Mortgage Revenue Bonds Montefiore Hospital Series 1989A (FHA Insured) 7.25 2024 1,400,000 1,479,170 State Medical Care Facility Finance Agency Mental Health Services Facility Improving Refunding Revenue Bonds Series 1993F (Secondary FSA Insured) 5.375 2014 1,000,000 1,016,640 State Medical Care Facility Finance Agency Mental Health Services Facility Improving Refunding Revenue Bonds Series 1994A (Secondary FSA Insured) 5.25 2023 1,500,000 1,493,625 State Medical Care Facility Finance Agency Revenue Bonds Buffalo General Hospital Series 1988C (FHA Insured) 7.60 2008 1,500,000 1,564,890 State Medical Care Facility Finance Agency Revenue Bonds Buffalo General Hospital Series 1988C (FHA Insured) 7.70 2022 1,950,000 2,035,547 State Medical Care Facility Finance Agency Secured Hospital Revenue Bonds Series 1987A 7.10 2027 550,000 566,775 State Mortgage Agency Homeowner Mortgage Revenue Bonds Series 27 6.90 2015 3,000,000 3,248,520 State Mortgage Agency Homeowner Mortgage Revenue Bonds Series TT 7.50 2015 4,000,000 4,322,840 State Mortgage Agency Revenue Bonds Series 9 A.M.T. 7.30 2017 970,000 981,427 State Thruway Authority Local Highway & Bridge Service Contract Bonds Series 1991 6.00 2011 2,500,000 2,633,525 State Urban Development Correction Facility Pre-refunded Revenue Bonds Series 1 (FSA Insured) 7.50 2020 4,500,000 4,888,485 State Urban Development Correctional Capital Facilities Refunding Revenue Bonds Series 1993A 5.25 2021 2,500,000 2,434,900 State Urban Development Correctional Capital Facilities Revenue Bonds Series 5 (MBIA Insured) 5.50 2025 750,000 769,808 State Urban Development Revenue Bonds Higher Education Applied Technology Grants Series 1995 (MBIA Insured) 5.75 2015 1,000,000 1,064,670 Triborough Bridge & Tunnel Authority General Purpose Pre-refunded Revenue Bonds Series S 7.00 2021 3,000,000 3,290,220 Triborough Bridge & Tunnel Authority Special Obligation Refunding Bonds Series 1991B (FGIC Insured) 6.875 2015 2,000,000 2,176,940 United Nations Development Senior Lien Refunding Revenue Bonds Series 1992A 6.00 2026 4,500,000 4,961,070 Utica Industrial Development Agency Civic Facility Revenue Bonds Series 1996A (MBIA Insured) 5.50 2016 750,000 770,085 Total municipal bonds (Cost: $103,136,036) $113,829,512
Short-term securities (1.6%) Issuer (d,g) Effective Amount Value(a) yield payable at maturity Municipal notes New York City General Obligation Bonds Series B-2 V.R.D.N. 08-15-03 4.20% $ 300,000 $ 300,000 New York City Water Finance Authority Water & Sewer System Revenue Bonds Series 1994C 06-15-23 5.10 1,000,000 1,000,000 New York City Water Finance Authority Water & Sewer System Revenue Bonds Series A 06-15-25 4.15 300,000 300,000 State Energy Research & Development Authority Pollution Control Refunding Revenue Bonds Niagara Mohawk Power Series A V.R. 07-01-15 4.50 300,000 300,000 Total short-term securities (Cost: $1,900,000) $ 1,900,000 Total investments in securities (Cost: $105,036,036)(h) $115,729,512
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 12-31-97 6-30-97 AAA 64% 58% AA 10 13 A 12 12 BBB 13 16 BB and below 1 1 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 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) The following abbreviations are used in portfolio descriptions: A.M.T. -- Alternative Minimum Tax-- As of Dec. 31, 1997, the value of securities subject to alternative minimum tax represented 14.3% of net assets. V.R. -- Variable Rate V.R.D.N. -- Variable Rate Demand Note (e) For zero coupon bonds, the interest rate disclosed represents the annualized yield on the date of acquisition. (f) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the same magnitude as, or in a multiple of, a decline (increase) in market short-term rates. Interest rate disclosed is the rate in effect on Dec. 31, 1997. Inverse floaters in the aggregate represent 1.8% of the Fund's net assets as of Dec. 31, 1997. (g) The Fund is entitled to receive principal amount from issuer or corporate guarantor, if indicated in parentheses, after a day or a week's notice. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on Dec. 31, 1997. (h) At Dec. 31, 1997, the cost of securities for federal income tax purposes was approximately $104,969,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation...........................................$10,761,000 Unrealized depreciation........................................... -- Net unrealized appreciation.......................................$10,761,000 See accompanying notes to investments in securities.
Investments in securities IDS Ohio Tax-Exempt Fund Dec. 31, 1997 (Unaudited) (Percentages represent value of investments compared to net assets) Municipal bonds (96.4%) Name of issuer and Coupon Maturity Principal Value(a) title of issue (b,c,d) rate year amount Barberton Limited Tax Various Purpose General Obligation Bonds 1st Series 1989 7.35 % 2009 $ 700,000 $ 753,501 Bellefontaine Hospital Facility Refunding Revenue Bonds Mary Rutan Health Association of Logan County Series 1993 6.00 2013 1,000,000 1,034,930 Buckeye Valley Local School District School Improvement Unlimited Tax General Obligation Bonds Series 1995A (MBIA Insured) 5.25 2020 1,000,000 1,000,720 Butler County Hospital Facility Improvement Refunding Revenue Bonds 7.50 2010 1,750,000 1,905,610 Butler County Transportation Improvement District Highway Improvement Transit Revenue Bonds Series 1997A (FSA Insured) 5.125 2017 1,000,000 1,001,270 Carroll Water & Sewer District Water System Improvement Unlimited Tax General Obligation Bonds 6.25 2010 955,000 974,625 Celina Local School District Unlimited General Obligation Bonds Series 1996 (FGIC Insured) 5.25 2020 1,000,000 1,000,720 Clermont County Hospital Facility Revenue Bonds Mercy Health System Province of Cincinnati Series 1989A (AMBAC Insured) 7.50 2019 750,000 813,015 Cleveland Airport Systems Revenue Bonds Series 1990A (MBIA Insured) A.M.T. 7.40 2020 500,000 542,010 Cleveland Waterworks Improvement 1st Mortgage Refunding Revenue Bonds Series F 1992B (AMBAC Insured) 6.25 2016 1,000,000 1,083,980 Cleveland Waterworks Improvement 1st Mortgage Revenue Bonds Series 1987E 6.00 2017 200,000 200,098 Coshocton County Solid Waste Disposal Refunding Revenue Bonds Stone Container Series 1992 7.875 2013 1,000,000 1,120,430 Cuyahoga County Health Care Facilities Refunding Revenue Bonds Judson Retirement Community Series A 7.25 2018 1,000,000 1,083,700 Cuyahoga County Hospital Improvement Revenue Bonds Mount Sinai Medical Center Series 1991 (AMBAC Insured) 6.625 2021 600,000 663,270 Cuyahoga County Hospital Improvement Revenue Bonds University Hospitals Health System Series 1992 (AMBAC Insured) 6.50 2011 500,000 542,000 Cuyahoga County Hospital Refunding Revenue Bonds Cleveland Clinic Foundation Series 1992 5.50 2011 1,500,000 1,566,195 Cuyahoga County Hospital Revenue Bonds Meridia Health Series 1991 7.00 2023 1,000,000 1,083,900 Cuyahoga County Limited Tax General Obligation Bonds 5.60 2013 500,000 542,540 Cuyahoga Hospital Revenue Bonds Metrohealth System Series 1989 (MBIA Insured) 6.00 2019 1,000,000 1,022,680 Delaware County Sewer Improvement Limited Tax General Obligation Bonds 5.25 2015 1,000,000 1,012,100 Dover Limited Tax Improvement General Obligation Bonds Municipal Sewer System 7.10 2009 1,000,000 1,070,330 Elyria Limited Tax Improvement General Obligation Recreation Facility Bonds 7.10 2009 715,000 768,039 Erie County Hospital Improvement Refunding Revenue Bonds Firelands Community Hospital Series 1992 6.75 2015 2,000,000 2,177,320 Franklin County Convention Facilities Authority Tax & Lease Revenue Anticipation Pre-refunded Bonds (MBIA Insured) 7.00 2019 1,500,000 1,647,855 Highland Heights Limited Tax Improvement General Obligation Street Bonds 7.75 2008 400,000 421,364 Hilliard County School District Unlimited Tax General Obligation Bonds Series A (FGIC Insured) 5.00 2020 1,000,000 981,230 Lakota Local School District Butler County School Unlimited Tax Improvement Bonds 7.00 2012 500,000 528,335 Lakota Local School District Butler County School Unlimited Tax Improvement Pre-refunded Bonds 7.90 2011 200,000 207,516 Lakota Local School District Unlimited Tax Improvement General Obligation Bonds (AMBAC Insured) 6.25 2014 2,000,000 2,211,220 Lorain County Hospital Facilities Refunding Revenue Bonds Elyria United Methodist Series C 6.875 2022 1,000,000 1,098,560 Lorain County Hospital Facilities Refunding Revenue Bonds EMH Regional Medical Center Series 1995 (AMBAC Insured) 5.375 2021 2,000,000 2,014,280 Marietta Sewer System Improvement Bonds (BIG Insured) 7.50 2007 200,000 204,592 Marion County Health Care Facilities Improvement Refunding Revenue Bonds United Church Homes Series 1993 6.375 2010 1,000,000 1,055,220 Marysville Sewer System 1st Mortgage Revenue Bonds Series 1988 (BIG Insured) A.M.T. 7.85 2008 400,000 416,080 Marysville Water System Mortgage Revenue Bonds Series 1991 (MBIA Insured) 7.05 2021 1,000,000 1,114,610 Medina County Hospital Revenue Bonds Medina County Community Hospital Series 1987 (AMBAC Insured) 6.875 2016 100,000 102,222 Montgomery County Health Facilities Revenue Bonds Friendship Village Dayton Series 1990A 9.25 2016 1,000,000 1,119,450 Montgomery County Hospital Facility Refunding Revenue & Improvement Bonds Ketter Medical Center Series 1996 (MBIA Insured) 5.50 2026 1,000,000 1,027,520 Montgomery County Water Revenue Bonds Greater Moraine-Beavercreek District (FGIC Insured) 6.25 2017 1,000,000 1,096,450 North Olmsted County General Obligation Bonds (AMBAC Insured) 5.00 2016-21 1,700,000 1,689,022 Oak Hills Local School District Unlimited Tax General Obligation Bonds Series 1997 (MBIA Insured) 5.125 2025 1,000,000 993,340 Orrville Electric System Refunding Revenue & Improvement Mortgage Bonds Series 1997 (AMBAC Insured) 5.10 2017 1,000,000 995,750 Parma Hospital Improvement Revenue Bonds Parma Community General Hospital Series 1989B (MBIA Insured) 7.125 2013 500,000 522,000 Pickerington Local School District Unlimited Tax General Obligation Pre-refunded Bonds (AMBAC Insured) 7.00 2013 1,000,000 1,098,570 Rural Loraine County Water Authority Water Resource Improvement Pre-refunded Revenue Bonds Series 1991 (AMBAC Insured) 7.00 2011 1,000,000 1,107,250 Southwest Local School District Hamilton & Butler Counties School Unlimited Tax Improvement Bonds (AMBAC Insured) 7.65 2010 500,000 548,800 State Air Quality Development Authority Refunding Revenue Bonds JMG Funding Limited Partnership (AMBAC Insured) A.M.T. 6.375 2029 500,000 550,030 State Air Quality Development Authority Refunding Revenue Bonds Series 1994 (AMBAC Insured) A.M.T. 6.375 2029 2,000,000 2,200,120 State Air Quality Development Authority Revenue Bonds Columbus & Southern Series A (FGIC Insured) 6.375 2020 1,000,000 1,100,230 State Building Authority Local Jail Grant Bonds Series 1989A (MBIA Insured) 7.35 2009 500,000 544,915 State Building Authority State Facility Pre-refunded Bonds Columbus State Office Building Series 1985C 7.35 2005 1,000,000 1,085,410 State Department of Administrative Services Certificate of Participation Rickenbacker Port Authority Series 1997 (AMBAC Insured) 5.00 2023 1,500,000 1,462,020 State Higher Educational Facility Pre-refunded Revenue Bonds Oberlin College Series 1989 7.375 2014 500,000 537,445 State Housing Finance Agency Mortgage Revenue Bonds Aristocrat South Board & Care Series 1991A (FHA Insured) A.M.T. 7.30 2031 1,500,000 1,590,825 State Housing Finance Agency Single Family Mortgage Revenue Bonds Series 1990A (GNMA Insured) A.M.T. 7.80 2030 420,000 441,260 State Housing Finance Agency Single Family Mortgage Revenue Bonds Series 1990C (GNMA Insured) A.M.T. 7.85 2021 715,000 760,367 State Municipal Electric Generation Agency Revenue Bonds Joint Venture 5 (AMBAC Insured) 5.375 2024 2,000,000 2,018,120 State Turnpike Revenue Bonds Series A 5.75 2024 1,000,000 1,048,140 State Turnpike Revenue Bonds Series A (MBIA Insured) 5.50 2026 1,000,000 1,029,660 State Valley School District School Improvement Unlimited Tax General Obligation Bonds Adams & Highland Counties Series 1995 (MBIA Insured) 5.25 2021 2,000,000 2,001,440 State Water & Air Quality Development Authority Cleveland Electric Illumination Pollution Control Refunding Revenue Bonds Series 1995 7.70 2025 1,000,000 1,157,910 State Water Development Authority Bonds Toledo Edison Series 1994 A.M.T. 8.00 2023 1,000,000 1,155,890 State Water Development Authority Water Development Pre-refunded Bonds Pure Water Series 1988I 7.00 2014 500,000 506,825 State Water Development Authority Water Development Refunding Revenue Bonds Pure Water (AMBAC Insured) 5.50 2018 750,000 767,707 State Water Development Solid Waste Disposal Revenue Bonds Northstar BHP Steel LLC-Cargill Series 1995 A.M.T. 6.30 2020 500,000 541,940 Summit County Industrial Development Revenue Bonds Century Products 7.75 2005 100,000 102,941 Sycamore Board of Education Community School District Hamilton County School Improvement Bonds 6.50 2009 500,000 520,010 University of Cincinnati Certificates of Participation Student Recreation Center (MBIA Insured) 5.125 2024 1,000,000 985,010 University of Cincinnati General Receipt Pre-refunded Bonds Series I-1 7.10 2010 750,000 797,318 University of Toledo General Receipt Pre-refunded Bonds Series 1990 (MBIA Insured) 7.125 2020 500,000 544,680 Warren County Various Purpose Limited Tax General Obligation Bonds Series 1992 6.10 2012 500,000 569,225 Whitehall City School District Franklin County Unlimited Tax Improvement General Obligation Pre-refunded Revenue Bonds 7.25 2013 500,000 539,910 Total municipal bonds (Cost: $63,667,803) $69,723,567
Short-term securities (2.4%) Issuer (d,e) Effective Amount Value(a) yield payable at maturity Municipal notes State Air Quality Development Authority Revenue Bonds Cincinnati Gas & Electric V. R. Series 1985B 12-01-15 4.50% $1,500,000 $ 1,500,000 State Air Quality Development Authority Revenue Bonds Cincinnati Gas & Electric V. R. Series A 09-01-30 4.95 200,000 200,000 Total short-term securities (Cost: $1,700,000) $ 1,700,000 Total investments in securities (Cost: $65,367,803)(f) $71,423,567
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 12-31-97 06-30-97 AAA 67% 64% AA 8 9 A 8 9 BBB 10 10 BB and below 7 8 Non-rated -- -- Total 100% 100% (c) The following abbreviations are used in portfolio descriptions to identify the insurer of the issue: AMBAC -- American Municipal Bond Association Corporation BIG -- Bond Investors Guarantee FGIC -- Financial Guarantee Insurance Corporation FHA -- Federal Housing Authority FSA -- Financial Security Assurance GNMA -- Government National Mortgage Association MBIA -- Municipal Bond Investors Assurance (d) The following abbreviations are used in portfolio descriptions: A.M.T. -- Alternative Minimum Tax-- As of Dec. 31, 1997, the value of securities subject to alternative minimum tax represented 11.3% of net assets. V.R. -- Variable Rate (e) The Fund is entitled to receive principal amount from issuer or corporate guarantor, if indicated in parentheses, after a day or a week's notice. The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on Dec. 31, 1997. (f) At Dec. 31, 1997, the cost of securities for federal income tax purposes was approximately $65,331,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was: Unrealized appreciation...........................................$6,093,000 Unrealized depreciation........................................... -- Net unrealized appreciation.......................................$6,093,000 Board members and officers Independent board members and officers Chairman William R. Pearce* of the board Chairman of the board, Board Services Corporation (provides administrative services to boards including the boards of the IDS and IDSLife funds and Master Trust portfolios). H. Brewster Atwater, Jr. Former chairman and chief executive officer, General Mills, Inc. Lynne V. Cheney Distinguished fellow, American Enterprise Institute for Public Policy Research. Heinz F. Hutter Former president and chief operating officer, Cargill, Inc. Anne P. Jones Attorney and telecommunications consultant. Alan K. Simpson Former United States senator for Wyoming. Edson W. Spencer Former chairman and chief executive officer, Honeywell, Inc. Wheelock Whitney Chairman, Whitney Management Company. C. Angus Wurtele Chairman of the board, The Valspar Corporation. Officer Vice president, Leslie L. Ogg* general counsel President, treasurer and corporate secretary of Board Services and secretary Corporation. Board members and officers associated with AEFC President John R. Thomas* Senior vice president, AEFC. William H. Dudley* Senior advisor to the chief executive officer, AEFC. David R. Hubers* President and chief executive officer, AEFC. Officers associated with AEFC Vice president Peter J. Anderson* Senior vice president, AEFC Treasurer Matthew N. Karstetter* Vice president, AEFC * Interested person as defined by the Investment Company Act of 1940. IDS mutual funds Global/International funds Funds in this group seek capital growth and/or income by investing primarily in foreign securities. Foreign investments may be subject to currency fluctuations and political and economic risks of the countries in which the investments are made. They are high risk mutual funds with a potential for high reward. IDS Emerging Markets Fund Invests in a Portfolio comprised primarily of stocks of companies in developing countries throughout the world that are believed to offer growth potential. Seeks to provide long-term growth of capital. (icon of) world with countries IDS Global Growth Fund Invests in a Portfolio comprised primarily of stocks of companies throughout the world that are positioned to meet market needs in a changing world economy. These companies offer above-average potential for long-term growth. (icon of) world IDS International Fund Invests primarily in common stocks of foreign companies that offer potential for superior growth. The Fund may invest up to 20% of its assets in the U.S. market. (icon of) three flags IDS Global Balanced Fund Invests in stocks and bonds in, for the most part, major markets throughout the world, including the U.S. Seeks to provide a balance of growth of capital and current income. (icon of) scale of globes IDS Global Bond Fund Invests in a Portfolio comprised primarily of debt securities of U.S. and foreign issuers to seek high total return through income and growth of capital. (icon of) globe Growth funds Funds in this group seek capital growth, primarily from common stocks. They are high risk mutual funds with a potential for high reward. IDS 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. A highly aggressive and speculative fund that seeks long-term growth of capital. (icon of) cart of precious gems IDS Discovery Fund Invests in small- and medium-size, growth-oriented companies emphasizing technological innovation and productivity enhancement. Buys and holds larger growth-oriented stocks. (icon of) ship IDS Small Company Index Fund Invests in all or a representative group of the equity securities comprising the S&P SmallCap 600 Index, as it strives to provide long-term capital appreciation. (icon of) building IDS Strategy Aggressive Fund Invests primarily in common stocks of companies that are selected for their potential for above-average growth. Above-average means that their growth potential is better, in the opinion of the portfolio's investment manager, than the Standard & Poor's Corporation (S&P) 500 Stock Index. (icon of) chess piece IDS Research Opportunities Fund Invests in a Portfolio comprised primarily of equity securities of companies included in the S&P 500 Index that are believed to have strong growth potential. The Portfolio is managed using a research methodology by the Research Department of AEFC. Goal is long-term appreciation. (icon of) magnifying glass IDS Growth Fund Invests in a Portfolio comprised primarily of companies that have above-average potential for long-term growth as a result of new management, marketing opportunities or technological superiority. (icon of) trees IDS New Dimensions Fund Invests in a Portfolio comprised primarily of companies with significant growth potential due to superiority in technology, marketing or management. The Fund frequently changes its industry mix. (icon of) dimension IDS Progressive Fund Invests primarily in undervalued common stocks. The Fund holds stocks for the long term with the goal of capital growth. (icon of) shooting star Growth & income funds These funds focus on securities of medium to large, well-established companies that offer long-term growth of capital and reasonable income from dividends and interest. Foreign investments may be subject to currency fluctuations and political and economic risks of the countries in which the investments are made. IDS Equity Select Fund Invests primarily in a combination of moderate growth stocks, higher-yielding equities and bonds. Seeks growth of capital and income. (icon of) three pine trees IDS Blue Chip Advantage Fund Invests in selected stocks from a major market index. Securities purchased are those recommended by our research analysts as the best from each industry represented on the index. Offers potential for long-term growth as well as dividend income. (icon of) ribbon IDS Managed Allocation Fund Invests in a Portfolio comprised primarily of U.S. equity securities, U.S. and foreign debt securities, foreign equity securities and money market instruments. The Fund provides diversification among these major investment categories and has a target mix that represents the way the Fund's investments will be allocated over the long term. Seeks maximum total return. (icon of) gyroscope IDS Stock Fund Invests in a Portfolio comprised primarily of common stock of companies representing many sectors of the economy. Seeks current income and growth of capital. (icon of) building with columns IDS Equity Value Fund Invests primarily in undervalued common stocks that offer potential for growth of capital and income. (icon of) three growing flowers IDS Utilities Income Fund Invests primarily in the stocks of public utility companies to seek high current income and growth of income and capital with reduced volatility. (icon of) light bulb IDS Diversified Equity Income Fund Invests in a Portfolio comprised primarily in high-yielding common stocks to seek high current income and, secondarily, to benefit from the growth potential offered by stock investments. (icon of) two puzzle pieces IDS Mutual Invests in a Portfolio which seeks to balance between common stocks and senior securities (preferred stocks and bonds). Seeks a balance of growth of capital and current income. (icon of) scale of justice Income funds The funds in this group invest their assets primarily in corporate bonds or government securities to seek interest income. Secondary objective is capital growth. Risk varies by bond quality. IDS Extra Income Fund Invests in a Portfolio comprised mainly of long-term, high-yielding corporate fixed-income securities in the lower rated, higher risk bond categories to seek high current income. Secondary objective is capital growth. (icon of) two coins IDS Bond Fund Invests mainly in corporate bonds, at least 50% in the higher rated, lower risk bond categories, or the equivalent, and in government bonds. (icon of) Greek column IDS Selective Fund Invests in a Portfolio comprised primarily of high-quality corporate bonds and other highly rated debt instruments including government securities and short-term investments. Seeks current income and preservation of capital. (icon of) skyline IDS Federal Income Fund Invests in a Portfolio comprised primarily of securities issued or guaranteed as to the timely payment of principal and interest by the U.S. government, its agencies and instrumentalities. Seeks a high level of current income and safety of principal consistent with its type of investments. (icon of) shield with eagle head Tax-exempt income funds These funds provide tax-free income by investing in municipal bonds. The income is generally free from federal income tax, but a portion of the income may be subject to state and local taxes. Risk varies by bond quality. IDS Tax-Exempt Bond Fund Invests mainly in bonds and notes of state or local government units, with at least 75% in the four highest rated, lowest risk bond categories. (icon of) shield with Greek column IDS Insured Tax-Exempt Fund Invests primarily in municipal securities that are insured as to the timely payment of principal and interest. The insurance feature minimizes credit risk of the Fund but does not guarantee the market value of the Fund's shares. (icon of) shield with star IDS State Tax-Exempt Funds (CA, MA, MI, MN, NY, OH) Invests primarily in high- and medium-grade municipal securities to provide income to residents of each respective state that is exempt from federal, state and local income taxes. (New York is the only state that is exempt at the local level.) (icon of) shield with U.S. enclosed IDS High Yield Tax-Exempt Fund Invests in a Portfolio comprised primarily of medium- and lower-quality municipal bonds and notes. Lower-quality securities generally involve greater risk of principal and income. (icon of) shield with basket of apples enclosed IDS Intermediate Tax-Exempt Fund Invests in mainly investment-grade bonds and other debt securities with intermediate-term maturities issued by state and local government units. Goal is to seek a high level of current income exempt from federal taxes. (icon of) shield with tree enclosed Money market funds These money market funds have three main goals: conservation of capital, constant liquidity and the highest possible current income consistent with these objectives. An investment in these funds is neither insured nor guaranteed by the U.S. government, and there can be no assurance that these funds will be able to maintain a stable net asset value of $1.00 per share. 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. (icon of) piggy bank IDS Tax-Free Money Fund Invests primarily in short-term bonds and notes issued by state and local governments to seek high current income exempt from federal income taxes. (icon of) shield with piggy bank enclosed 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. Quick telephone reference American Express Redemptions and exchanges, National/Minnesota Financial Advisors dividend payments or 800-437-3133 Telephone Transaction reinvestments and automatic Service payment arrangements Mpls./St. Paul area: 671-3800 TTY Service For the hearing impaired 800-846-4852 American Express Automated account information 800-862-7919 Financial Advisors (TouchTone(R) phones only), Easy Access Line including current fund prices and performance, account values and recent account transactions AMERICAN EXPRESS Financial Advisors IDS State Tax-Exempt Fund IDS Tower 10 Minneapolis, MN 55440-0010 -----END PRIVACY-ENHANCED MESSAGE-----