UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
| | |
| Investment Company Act file number: | 811-05340 |
Name of Registrant: | Vanguard New Jersey Tax-Free Funds |
Address of Registrant: | P.O. Box 2600 |
| | Valley Forge, PA 19482 |
Name and address of agent for service: | Heidi Stam, Esquire |
| | P.O. Box 876 |
| | Valley Forge, PA 19482 |
Registrant’s telephone number, including area code: (610) 669-1000 |
Date of fiscal year end: November 30 |
Date of reporting period: December 1, 2014 – November 30, 2015 |
Item 1: Reports to Shareholders |
Annual Report | November 30, 2015
Vanguard New Jersey Tax-Exempt Funds
Vanguard New Jersey Tax-Exempt Money Market Fund
Vanguard New Jersey Long-Term Tax-Exempt Fund
Vanguard’s Principles for Investing Success
We want to give you the best chance of investment success. These principles, grounded in Vanguard’s research and experience, can put you on the right path.
Goals. Create clear, appropriate investment goals.
Balance. Develop a suitable asset allocation using broadly diversified funds. Cost. Minimize cost.
Discipline. Maintain perspective and long-term discipline.
A single theme unites these principles: Focus on the things you can control.
We believe there is no wiser course for any investor.
| |
| Contents | |
| Your Fund’s Total Returns. | 1 |
| Chairman’s Letter. | 2 |
| Advisor’s Report. | 8 |
| New Jersey Tax-Exempt Money Market Fund. | 12 |
| New Jersey Long-Term Tax-Exempt Fund. | 27 |
| About Your Fund’s Expenses. | 59 |
| Glossary. | 61 |
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice.
Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the
risks of investing in your fund are spelled out in the prospectus.
See the Glossary for definitions of investment terms used in this report.
About the cover: Pictured is a sailing block on the Brilliant, a 1932 schooner docked in Mystic, Connecticut. A type of pulley, the
sailing block helps coordinate the setting of the sails. At Vanguard, the intricate coordination of technology and people allows
us to help millions of clients around the world reach their financial goals.
Your Fund’s Total Returns
| | | | | |
| Fiscal Year Ended November 30, 2015 | | | | | |
| | | Taxable- | | | |
| | SEC | Equivalent | Income | Capital | Total |
| | Yield | Yield | Returns | Returns | Returns |
| Vanguard New Jersey Tax-Exempt Money Market | | | | | |
| Fund | 0.01% | 0.02% | 0.01% | 0.00% | 0.01% |
| Other States Tax-Exempt Money Market Funds | | | | | |
| Average | | | | | 0.01 |
| Other States Tax-Exempt Money Market Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. | |
| Vanguard New Jersey Long-Term Tax-Exempt Fund | | | | | |
| Investor Shares | 2.78% | 5.40% | 3.55% | -1.38% | 2.17% |
| Admiral™ Shares | 2.85 | 5.53 | 3.63 | -1.38 | 2.25 |
| Barclays NJ Municipal Bond Index | | | | | 1.34 |
| New Jersey Municipal Debt Funds Average | | | | | 1.92 |
New Jersey Municipal Debt Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company.
7-day SEC yield for the New Jersey Tax-Exempt Money Market Fund; 30-day SEC yield for the New Jersey Long-Term Tax-Exempt Fund.
The calculation of taxable-equivalent yield assumes a typical itemized tax return and is based on the maximum federal tax rate of 43.4% and
the maximum income tax rate for the state. Local taxes were not considered. Please see the prospectus for a detailed explanation of the
calculation.
Admiral Shares carry lower expenses and are available to investors who meet certain account-balance requirements.
| | | | |
| Your Fund’s Performance at a Glance | | | | |
| November 30, 2014, Through November 30, 2015 | | | | |
| | | | Distributions Per Share |
| | Starting | Ending | | |
| | Share | Share | Income | Capital |
| | Price | Price | Dividends | Gains |
| Vanguard New Jersey Tax-Exempt Money Market | | | | |
| Fund | $1.00 | $1.00 | $0.000 | $0.000 |
| Vanguard New Jersey Long-Term Tax-Exempt Fund | | | | |
| Investor Shares | $12.22 | $12.00 | $0.427 | $0.053 |
| Admiral Shares | 12.22 | 12.00 | 0.436 | 0.053 |
1
Chairman’s Letter
Dear Shareholder,
Bond market returns for the 12 months ended November 30, 2015, were more modest than a year ago—bearing out the cautionary note we sounded back then. Still, the broad U.S. municipal bond market performed relatively well over a period that was less turbulent than some recent ones. It returned 3.10%, about 2 percentage points ahead of the broad U.S. taxable bond market.
New Jersey’s bonds generally underper-formed the broad tax-exempt market, reflecting the state’s relatively weaker overall fiscal condition. Vanguard New Jersey Long-Term Tax-Exempt Fund returned 2.17% for Investor Shares and 2.25% for Admiral Shares. The fund did, though, exceed the 1.34% result for its benchmark and the 1.92% average return of its peer group.
The fund’s price decline in the first half of the fiscal year was partly offset by price gains in the second half, when interest rates slipped. (Bond prices and interest rates move in opposite directions.) But its 12-month capital return was negative, pulled down in part as the overall creditworthiness of New Jersey issuers declined. The fund’s 30-day SEC yield for Investor Shares was 2.78% on November 30, about flat with May 31 but up from 2.45% at the start of the fiscal year.
2
Vanguard New Jersey Tax-Exempt Money Market Fund returned 0.01%, in line with its peer average, as the Federal Reserve kept short-term interest rates at 0%–0.25%. The fund’s yield was unchanged at 0.01%.
Please note that although the funds are permitted to invest in securities whose income is subject to the alternative minimum tax (AMT), throughout the year the Long-Term Fund held no securities that would generate income distributions subject to the AMT. The Money Market Fund did hold such securities during the period and on November 30.
On a separate note, and as previously reported, we’re making some changes to Vanguard’s lineup of taxable and tax-exempt money market funds in response to the Securities and Exchange Commission’s new money market rules. Before the October 2016 compliance date, we will designate all our tax-exempt money market funds—including New Jersey’s—as retail funds. This will enable individual investors to continue to access these very liquid, high-quality funds at a stable net asset value of $1 per share.
Bonds managed slight gains as investors waited for the Fed
Bond returns were muted for the 12 months overall. Prices rose and fell while investors digested the Fed’s latest statements about when it might begin to raise short-term rates. (In mid-December, after the close of the reporting period, the Fed raised its target for those rates to 0.25%–0.5%.)
| | | |
| Market Barometer | | | |
| | Average Annual Total Returns |
| | Periods Ended November 30, 2015 |
| | One | Three | Five |
| | Year | Years | Years |
| Bonds | | | |
| Barclays U.S. Aggregate Bond Index (Broad taxable | | | |
| market) | 0.97% | 1.50% | 3.09% |
| Barclays Municipal Bond Index (Broad tax-exempt market) | 3.10 | 2.49 | 4.79 |
| Citigroup Three-Month U.S. Treasury Bill Index | 0.02 | 0.02 | 0.04 |
| |
| Stocks | | | |
| Russell 1000 Index (Large-caps) | 2.53% | 16.10% | 14.32% |
| Russell 2000 Index (Small-caps) | 3.51 | 14.92 | 12.02 |
| Russell 3000 Index (Broad U.S. market) | 2.58 | 16.00 | 14.13 |
| FTSE All-World ex US Index (International) | -6.43 | 3.85 | 3.41 |
| |
| CPI | | | |
| Consumer Price Index | 0.50% | 1.02% | 1.64% |
3
At times, bonds benefited from demand for a safe haven amid concerns such as Greece’s fiscal crisis.
The broad U.S. taxable bond market returned 0.97%. Interest income more than offset bond price declines. Although the yield of the 10-year Treasury note ended November at 2.22%, almost unchanged from 2.25% a year earlier, the yields of shorter-term bonds rose, especially in the second half of the period. For example, the 1-year Treasury yield climbed from 0.12% a year ago to 0.48%, as investors anticipated a rate increase.
International bond markets (as measured by the Barclays Global Aggregate Index ex USD) returned about –8%, held back by the dollar’s strength against many foreign currencies. Without this currency effect, results were positive.
The Fed’s near-zero target for short-term rates continued to limit returns for money market funds and savings accounts.
The broad U.S. stock market produced modest returns
U.S. stocks traveled a bumpy route on their way to returns that approached 3% for the period. Amid fears about the ripple effects of China’s slowing economic growth, stocks dropped sharply in August, slid further in September, then rebounded strongly in October.
| | | |
| Expense Ratios | | | |
| Your Fund Compared With Its Peer Group | | | |
| |
| | Investor | Admiral | Peer Group |
| | Shares | Shares | Average |
| New Jersey Tax-Exempt Money Market | | | |
| Fund | 0.16% | — | 0.14% |
| New Jersey Long-Term Tax-Exempt Fund | 0.20 | 0.12% | 0.95 |
The fund expense ratios shown are from the prospectus dated March 26, 2015, and represent estimated costs for the current fiscal year. For
the fiscal year ended November 30, 2015, the funds’ expense ratios were: for the New Jersey Tax-Exempt Money Market Fund, 0.08%; and
for the New Jersey Long-Term Tax-Exempt Fund, 0.20% for Investor Shares and 0.12% for Admiral Shares. The expense ratio for the New
Jersey Tax-Exempt Money Market Fund reflects a temporary reduction in operating expenses (described in Note B of the Notes to Financial
Statements). Before the reduction, the expense ratio was 0.16%. Peer-group expense ratios are derived from data provided by Lipper, a
Thomson Reuters Company, and capture information through year-end 2014.
Peer groups: For the New Jersey Tax-Exempt Money Market Fund, Other States Tax-Exempt Money Market Funds; for the New Jersey
Long-Term Tax-Exempt Fund, New Jersey Municipal Debt Funds. In most, if not all, cases, the expense ratios for funds in the peer groups are
based on net operating expenses after reimbursement and/or fee waivers by fund sponsors. In contrast, the Vanguard money market funds’
expense ratios in the table above do not reflect expense reductions.
4
International stocks returned about –6%—held back, like international bonds, by the dollar’s strength. Returns for emerging markets, which were especially affected by the concerns about China, trailed those of developed Pacific and European markets.
Security selection helped during a challenging period
During the fiscal year, most muni investors looked beyond the headline-making debt challenges faced by Illinois and Puerto Rico to the generally stable-to-improving creditworthiness of the vast majority of municipal borrowers. In New Jersey, however, the picture was a bit different, as its complex structural budget issues remained front and center. The state’s credit rating was downgraded several
times during the previous 12 months, and more downgrades ensued this fiscal year at the state and city level, most notably in Atlantic City.
Tax-exempt bonds issued in New Jersey bore the brunt of the state’s fiscal challenges in the first six months of the period. As I mentioned earlier, bond prices recovered somewhat during the second six months, as the credit outlook seemed to stabilize, at least partly.
Aided by an experienced and diligent credit research team, your funds’ advisor, Vanguard Fixed Income Group, successfully navigated the choppy waters. The advisor added value versus the benchmark by favoring some longer-term bonds in anticipation that a Fed rate increase
| |
| Total Returns | |
| Ten Years Ended November 30, 2015 | |
| | Average |
| | Annual Return |
| New Jersey Tax-Exempt Money Market Fund | 0.97% |
| Spliced New Jersey Tax-Exempt Money Market Funds Average | 0.80 |
| For a benchmark description, see the Glossary. |
| Spliced New Jersey Tax-Exempt Money Market Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. |
| |
| New Jersey Long-Term Tax-Exempt Fund Investor Shares | 4.38% |
| Barclays NJ Municipal Bond Index | 4.56 |
| New Jersey Municipal Debt Funds Average | 3.88 |
| New Jersey Municipal Debt Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. | |
The figures shown represent past performance, which is not a guarantee of future results. (Current performance may be
lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our
website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so
an investor’s shares, when sold, could be worth more or less than their original cost.
5
would hurt short-term prices. And, as in the previous fiscal year, the advisor’s security selection—including a preference for hospital and university revenue bonds—helped results.
For more about the funds’ strategy and performance, please see the Advisor’s Report that follows this letter.
Credit research and low costs supported results over a decade
Although the most recent fiscal year was relatively calm for the broad municipal bond market, that wasn’t the case over the past decade—which saw a small number of widely publicized bankruptcies, including Detroit’s.
Through it all, the Vanguard New Jersey funds have benefited from the expertise and experience of our team of independent credit analysts, who work closely with the entire portfolio management team. (For more on the credit team, see the insight box below.)
Our disciplined approach and Vanguard’s low costs helped the New Jersey funds outpace their peers’ average annual return for the decade. The Long-Term Fund performed in line with its benchmark, which, like all indexes, incurs no expenses.
A final note about a key member of our municipal bond fund management team: Pamela Wisehaupt Tynan, who joined
| Credit research: A key part of Vanguard’s investment process |
| |
| When our funds buy a municipal bond, fund shareholders are lending money to a school |
| district, turnpike authority, hospital, university, or other tax-exempt borrower. We expect |
| those loans to be repaid. That’s why credit research is a pillar of our investment process |
| and why our credit analysts work closely with our portfolio managers and traders. |
| |
| Our credit team conducts an objective, thorough, and independent analysis of each issuer’s |
| overall creditworthiness. This quantitative and qualitative approach may include testing the |
| sensitivity of projected cash flows, analyzing demographic and economic drivers, negotiating |
| legal covenants, meeting with the issuer’s officials, and, of course, digging into financial |
| statements. |
| |
| Credit analysts look to identify opportunities or problems among any bonds we own or |
| are considering. Their informed opinions help us understand and manage risk, sidestep |
| troubled issuers, and uncover value. |
| |
| Our senior municipal credit analysts average more than 23 years of industry experience |
| and more than 10 years at Vanguard. This experience, along with stability in our team |
| structure, helps ensure consistency in credit exposure and risk management across |
| funds with similar objectives. |
6
Vanguard in 1982 and has been a longtime muni bond fund manager with us, has announced her retirement effective at the end of February 2016. We are grateful for her dedication in successfully managing a number of our funds for more than two decades. Pam also developed a deep and talented team of portfolio managers and traders to oversee Vanguard’s tax-exempt money market funds. I know that our short-term muni bond team is in good hands, as we’ve appointed Justin Schwartz to succeed Pam. Justin joined Vanguard in 2004 and has worked closely with Pam since 2005.
A dose of discipline is crucial when markets become volatile
The developments over the past few months remind us that nobody can control the direction of the markets or reliably predict where they’ll go in the short term. However, investors can control how they react to unstable and turbulent markets.
During periods of market adversity, it’s more important than ever to keep sight of one of Vanguard’s key principles: Maintain perspective and long-term discipline. Whether you’re investing for yourself or on behalf of clients, your success is affected greatly by how you respond—or don’t respond—during turbulent markets. (You can read Vanguard’s Principles for Investing Success at vanguard.com/research.)
As I’ve written in the past, the best course for long-term investors is generally to ignore daily market moves and not make decisions based on emotion. This is also a good time to evaluate your portfolio and make sure your asset allocation is aligned with your time horizon, goals, and risk tolerance.
The markets are unpredictable and often confounding. Keeping your long-term plans clearly in focus can help you weather these periodic storms.
As always, thank you for investing with Vanguard.
Sincerely,
F. William McNabb III
Chairman and Chief Executive Officer
January 7, 2016
7
Advisor’s Report
For the fiscal year ended November 30, 2015, Vanguard New Jersey Tax-Exempt Money Market fund returned 0.01%, in line with the average return of peer funds. Vanguard New Jersey Long-Term Tax-Exempt Fund returned 2.17% for Investor Shares and 2.25% for Admiral Shares, ahead of the 1.34% return of its benchmark (the Barclays New Jersey Municipal Bond Index) and the 1.92% average return of its peer funds.
The investment environment
In our last annual report, when returns were exceptionally robust, we observed that “it was a remarkable year for municipal bonds as a whole.” If we had to characterize the 12 months just ended, we’d call them “remarkably normal”—especially given the uncertainties about when the Federal Reserve would begin to raise interest rates.
The New Jersey funds’ fiscal year began a month after the Fed wrapped up its multiyear stimulative bond-buying program. Throughout the period, stock and bond investors worldwide remained focused on when the Fed might raise rates for the first time in nearly a decade.
Because the Fed made clear that its decision would depend on the health of the economy, investors closely followed reports on job growth, unemployment, gross domestic product (GDP), inflation, and other indicators. Interest rates,
| | |
| Yields of Tax-Exempt Municipal Bonds | | |
| (AAA-Rated General-Obligation Issues) | | |
| | November 30, | November 30, |
| Maturity | 2014 | 2015 |
| 2 years | 0.38% | 0.72% |
| 5 years | 1.15 | 1.26 |
| 10 years | 2.08 | 2.02 |
| 30 years | 3.01 | 2.96 |
| Source: Vanguard. |
8
especially for shorter-maturity bonds, rose and fell in response to the relative strength of the data.
The trend in GDP was mostly positive. Growth was anemic in the first calendar quarter of 2015 (in part because of another harsh winter, a West Coast port strike, lower oil prices, and a stronger dollar); accelerated in the second quarter at a rate approaching 4%; and slowed down again in the third quarter. Job growth was generally strong. And the national unemployment rate fell during the fiscal year from 5.8% to 5.0%—a level not seen since April 2008.
But growth outside the United States was spotty. The euro zone as a whole seemed to be gaining traction, apart from some well-publicized challenges such as those faced by Greece. China, meanwhile, has been resetting expectations for lower growth, and that has had ripple effects across the globe, especially among other emerging markets. This contributed to the Fed’s decision to hold the line. (In mid-December, after the end of our reporting period, the Fed raised its target for the federal funds rate to between 0.25% and 0.5%.)
New Jersey is still grappling with the devastation caused by Hurricane Sandy in 2012 and with structural imbalances in the state’s budget that have existed for more than a decade. And major credit-rating agencies made further downgrades at the state and local levels.
Still, according to a gauge of current economic conditions published monthly by the Federal Reserve Bank of Philadelphia, New Jersey’s index rose more than 3% from November 2014 through October 2015, compared with just under 3% for the U.S economy. (Each state’s index incorporates data on nonfarm payroll employment, the jobless rate, average hours worked in manufacturing, and inflation-adjusted wage and salary payments.) And tax collections in the third calendar quarter grew almost 5% from year-ago levels—a bit better than the national average, according to estimates by the Nelson A. Rockefeller Institute of Government.
Nationwide, tax-exempt bond issuance (refundings and new-money transactions) increased more than 20% during the period. But it decreased in New Jersey, in part because borrowers were still holding back on new-money financings. We continue to follow developments related to major funding by both New Jersey and New York for a Hudson River tunnel project.
As for valuations, the municipal bond market overall began the fiscal year at what we felt were appropriate levels. The relationship between the 10-year U.S. Treasury note and its tax-exempt counterpart underwent some minor shifts, as both taxable and tax-exempt yields drifted up and down. For example, the yield of the bellwether 10-year Treasury began the period at 2.25%, closed below
9
2% in some early months, then ended about flat at 2.22%. In November, municipal bonds capped the fiscal year by outperforming Treasuries, while the yield of AAA-rated municipal bonds ended about where it started (a bit above 90% of the Treasury yield). In contrast, the yield of New Jersey’s general obligation bonds ended the 12 months higher than where it began.
Management of the funds
At Vanguard, we strive to add value through a diversified mix of strategies—primarily, duration and yield-curve positioning, credit-quality decisions, and security selection. We don’t try to hit home runs, preferring to consistently hit singles and doubles. Risk management is key in our investment processes. And we collaborate closely with Vanguard’s experienced team of credit analysts. They perform an objective, thorough, and independent analysis of the overall creditworthiness of every issuer whose bonds we own or are considering buying.
We made no significant shifts in portfolio strategy in the Long-Term Fund during the period. Given New Jersey’s fiscal challenges, we continued to limit exposure to state general obligation bonds and state-related credits. We favored other sectors, such as health care and higher education, that have more identifiable cash-flow streams to service the debt. This strategy helped us outperform the fund’s benchmark.
We also added value by holding premium callable bonds, which performed well. Because these bonds may be redeemed before maturity, exposing investors to reinvestment risk, they offer attractive yields and favorable total return potential across many interest rate scenarios.
A look ahead
Although the U.S. economy’s growth rate slowed in the third calendar quarter, we believe it is on track to average about 2.5% or a bit higher in the coming year. Inflation should remain tempered by oil prices, which seem to have settled into a range far below their summer 2014 peak.
Apart from Fed policy, interest rates are likely to remain range-bound. We expect their floor to be set, at least in part, by the strength of the U.S. economy. The cap will be determined by global conditions, including the relative strength of the dollar, slower growth overseas, and foreign central bank policies—which have driven down bond yields abroad.
We believe that the Fed will be slow and deliberate in its subsequent moves to tighten and that rates over the next few years will be lower than historical levels. These expectations are already largely built into bond market prices.
On the money market front, the coming year is likely to be an interesting one. In addition to rising interest rates, a shifting of assets is expected before the October 2016 date for compliance with new SEC
10
rules. As previously reported, we plan to designate the New Jersey Tax-Exempt Money Market Fund as a retail fund, along with all our national and state-specific tax-exempt money market funds—giving investors continued access to stable-value offerings.
As interest rates fell in recent years, we captured many opportunities for price appreciation. We don’t see much scope for credit spreads to tighten significantly, nor do we expect them to widen back out. Given the macroeconomic environment and current muni and taxable-bond valuation levels, we plan to keep seeking to add value through a combination of duration and maturity positioning, credit-quality profiles, and security selection.
We expect to continue holding above-average levels of liquidity in our New Jersey funds so that we can take advantage of any pricing dislocations that may occur as interest rates rise.
Christopher W. Alwine, CFA, Principal,
Head of Municipal Bond Funds
Pamela Wisehaupt Tynan, Principal,
Head of Municipal Money Market Funds
Mathew M. Kiselak, Principal,
Portfolio Manager
John M. Carbone, Principal,
Portfolio Manager
Vanguard Fixed Income Group
December 18, 2015
11
New Jersey Tax-Exempt Money Market Fund
Fund Profile
As of November 30, 2015
| |
| Financial Attributes | |
| Ticker Symbol | VNJXX |
| Expense Ratio1 | 0.16% |
| 7-Day SEC Yield | 0.01% |
| Average Weighted | |
| Maturity | 45 days |
| |
| Distribution by Credit Quality (% of portfolio) |
| First Tier | 100.0% |
A First Tier security is one that is eligible for money market funds and has been rated in the highest short-term rating category for
debt obligations by nationally recognized statistical rating organizations. Credit-quality ratings are obtained from Moody's,
Fitch, and S&P. For securities rated by all three agencies, where two of them are in agreement and assign the highest rating
category, the highest rating applies. If a security is only rated by two agencies, and their ratings are in different categories, the
lower of the ratings applies. An unrated security is First Tier if it represents quality comparable to that of a rated security, as
determined in accordance with SEC Rule 2a-7. For more information about these ratings, see the Glossary entry for Credit
Quality.
1 The expense ratio shown is from the prospectus dated March 26, 2015, and represents estimated costs for the current fiscal year. For the
fiscal year ended November 30, 2015, the expense ratio was 0.08%, reflecting a temporary reduction in operating expenses (described in
Note B of the Notes to Financial Statements). Before this reduction, the expense ratio was 0.16%.
12
New Jersey Tax-Exempt Money Market Fund
Performance Summary
Investment returns will fluctuate. All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) The returns shown do not reflect taxes that a shareholder would pay on fund distributions. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. The fund’s 7-day SEC yield reflects its current earnings more closely than do the average annual returns.
Cumulative Performance: November 30, 2005, Through November 30, 2015
Initial Investment of $10,000
| | | | |
| | Average Annual Total Returns | |
| | Periods Ended November 30, 2015 | |
| |
| | | | | Final Value |
| | One | Five | Ten | of a $10,000 |
| | Year | Years | Years | Investment |
| |
| New Jersey Tax-Exempt Money | | | | |
| Market Fund | 0.01% | 0.03% | 0.97% | $11,016 |
| Spliced New Jersey Tax-Exempt | | | | |
| •••••••• Money Market Funds Average | 0.01 | 0.00 | 0.80 | 10,827 |
| For a benchmark description, see the Glossary. |
| Spliced New Jersey Tax-Exempt Money Market Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. |
See Financial Highlights for dividend information.
13
New Jersey Tax-Exempt Money Market Fund
Fiscal-Year Total Returns (%): November 30, 2005, Through November 30, 2015
| | |
| | | Spliced NJ |
| | | Tax-Exempt |
| | | Money Mkt |
| | | Funds Avg. |
| Fiscal Year | Total Returns | Total Returns |
| 2006 | 3.25% | 2.74% |
| 2007 | 3.60 | 3.12 |
| 2008 | 2.27 | 1.90 |
| 2009 | 0.45 | 0.25 |
| 2010 | 0.11 | 0.01 |
| 2011 | 0.06 | 0.00 |
| 2012 | 0.04 | 0.01 |
| 2013 | 0.01 | 0.00 |
| 2014 | 0.01 | 0.00 |
| 2015 | 0.01 | 0.01 |
| 7-day SEC yield (11/30/2015): 0.01% |
| For a benchmark description, see the Glossary. |
| Spliced New Jersey Tax-Exempt Money Market Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. |
Average Annual Total Returns: Periods Ended September 30, 2015
This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.
Securities and Exchange Commission rules require that we provide this information.
| | | | |
| | Inception | One | Five | Ten |
| | Date | Year | Years | Years |
| New Jersey Tax-Exempt Money | | | | |
| Market Fund | 2/3/1988 | 0.01% | 0.03% | 1.02% |
14
New Jersey Tax-Exempt Money Market Fund
Financial Statements
Statement of Net Assets
As of November 30, 2015
The fund reports a complete list of its holdings in various monthly and quarterly regulatory filings. The fund publishes its holdings on a monthly basis at vanguard.com and files them with the Securities and Exchange Commission on Form N-MFP. The fund’s Form N-MFP filings become public 60 days after the relevant month-end, and may be viewed at sec.gov or via a link on the “Portfolio Holdings” page on vanguard.com. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| Tax-Exempt Municipal Bonds (99.0%) | | | | |
| New Jersey (99.0%) | | | | |
| Branchburg Township NJ BAN | 2.000% | 10/7/16 | 2,505 | 2,535 |
| Brick Township NJ BAN | 1.000% | 12/17/15 | 4,882 | 4,883 |
| Brick Township NJ BAN | 1.500% | 12/17/15 | 5,028 | 5,030 |
| Brick Township NJ Municipal Utility Authority BAN | 1.250% | 3/31/16 | 7,250 | 7,272 |
| Burlington County NJ BAN | 1.500% | 5/17/16 | 25,000 | 25,143 |
| Burlington County NJ Bridge Commission | | | | |
| Revenue | 1.500% | 5/17/16 | 5,000 | 5,028 |
| Burlington County NJ Bridge Commission | | | | |
| Revenue BAN | 1.250% | 2/1/16 | 14,050 | 14,074 |
| Camden County NJ Improvement Authority Lease | | | | |
| Revenue (Parkview Redevelopment Housing | | | | |
| Project) VRDO | 0.010% | 12/7/15 LOC | 46,500 | 46,500 |
| Cape May County NJ Municipal Utilities Authority | | | | |
| Revenue | 5.750% | 1/1/16 | 1,000 | 1,005 |
| Chatham Township NJ BAN | 2.000% | 7/13/16 | 3,451 | 3,484 |
| Cliffside Park Borough NJ BAN | 2.000% | 7/22/16 | 4,933 | 4,983 |
| Clifton NJ BAN | 2.000% | 10/12/16 | 7,532 | 7,637 |
| Cranford NJ BAN | 1.500% | 5/20/16 | 8,600 | 8,649 |
| Delaware River & Bay Authority New Jersey | | | | |
| Revenue VRDO | 0.010% | 12/7/15 LOC | 4,300 | 4,300 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue VRDO | 0.010% | 12/7/15 LOC | 39,230 | 39,230 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue VRDO | 0.010% | 12/7/15 LOC | 9,600 | 9,600 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue VRDO | 0.010% | 12/7/15 LOC | 27,835 | 27,835 |
| Essex County NJ Improvement Authority | | | | |
| Revenue (Fern Senior Housing Project) VRDO | 0.010% | 12/7/15 LOC | 7,300 | 7,300 |
| Essex County NJ Improvement Authority | | | | |
| Revenue (Jewish Community Center of | | | | |
| MetroWest Inc. Project) VRDO | 0.010% | 12/7/15 LOC | 10,345 | 10,345 |
| Essex County NJ Improvement Authority | | | | |
| Revenue (Pooled Government Loan) VRDO | 0.010% | 12/7/15 LOC | 15,625 | 15,625 |
| Fair Lawn NJ BAN | 2.000% | 9/16/16 | 9,019 | 9,137 |
| Freehold Township NJ BAN | 1.000% | 12/14/15 | 5,000 | 5,001 |
15
New Jersey Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| 1 Freehold Township NJ BAN | 2.000% | 11/18/16 | 4,139 | 4,194 |
| Gloucester County NJ Pollution Control Financing | | | | |
| Authority Revenue (ExxonMobil Project) VRDO | 0.010% | 12/1/15 | 18,885 | 18,885 |
| Hopewell Township NJ BAN | 1.500% | 4/8/16 | 1,480 | 1,485 |
| Hudson County NJ Improvement Authority BAN | 1.000% | 4/29/16 | 8,000 | 8,020 |
| Lakewood Township NJ BAN | 1.500% | 4/8/16 | 3,390 | 3,402 |
| Mahwah Township NJ BAN | 2.000% | 8/5/16 | 5,550 | 5,612 |
| Mahwah Township NJ BAN | 2.000% | 10/7/16 | 2,900 | 2,940 |
| Mercer County NJ BAN | 1.250% | 2/11/16 | 13,000 | 13,027 |
| Middlesex County NJ BAN | 1.250% | 6/3/16 | 10,000 | 10,049 |
| Monmouth County NJ GO | 2.000% | 1/15/16 | 2,090 | 2,095 |
| Monmouth County NJ GO | 3.000% | 3/1/16 | 2,140 | 2,155 |
| 1 Monmouth County NJ GO | 2.000% | 7/15/16 | 365 | 369 |
| 1 Monmouth County NJ GO | 2.000% | 7/15/16 | 160 | 162 |
| 1 Monmouth County NJ GO | 2.000% | 7/15/16 | 3,420 | 3,457 |
| Monmouth County NJ Improvement Authority | | | | |
| Lease Revenue (Pooled Equipment Lease) | 2.000% | 10/1/16 | 2,185 | 2,215 |
| Morris County NJ GO | 3.000% | 2/1/16 | 3,500 | 3,517 |
| New Jersey Economic Development Authority | | | | |
| Revenue | 5.000% | 3/1/16 (ETM) | 2,075 | 2,100 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Applewood Estates Project) VRDO | 0.010% | 12/7/15 LOC | 8,700 | 8,700 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Columbia University Project) CP | 0.040% | 12/1/15 | 6,375 | 6,375 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Cooper Health System Project) VRDO | 0.010% | 12/7/15 LOC | 12,600 | 12,600 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Duke Farms Foundation Project) VRDO | 0.010% | 12/1/15 LOC | 28,800 | 28,800 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Job Haines Home Project) VRDO | 0.010% | 12/7/15 LOC | 3,200 | 3,200 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Princeton Day School) VRDO | 0.010% | 12/7/15 LOC | 5,000 | 5,000 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 12/15/15 (Prere.) | 1,485 | 1,488 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 12/15/15 (ETM) | 1,615 | 1,618 |
| New Jersey Economic Development Authority | | | | |
| Revenue Pollution Control Revenue | | | | |
| (Exxon Project) VRDO | 0.010% | 12/1/15 | 2,000 | 2,000 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Trustees of the Lawrenceville School | | | | |
| Project) VRDO | 0.010% | 12/1/15 | 22,700 | 22,700 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Trustees of the Lawrenceville School | | | | |
| Project) VRDO | 0.010% | 12/1/15 | 22,550 | 22,550 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Institute for Advanced Studies) VRDO | 0.010% | 12/7/15 | 16,325 | 16,325 |
| 2 New Jersey Educational Facilities Authority | | | | |
| Revenue (Institute for Advanced Studies) VRDO | 0.010% | 12/7/15 | 21,500 | 21,500 |
| 2 New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) TOB VRDO | 0.010% | 12/7/15 | 2,665 | 2,665 |
| 2 New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) TOB VRDO | 0.020% | 12/7/15 | 4,330 | 4,330 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Seton Hall University) VRDO | 0.010% | 12/7/15 LOC | 15,335 | 15,335 |
16
New Jersey Tax-Exempt Money Market Fund
| | | | | |
| | | | | Face | Market |
| | | | Maturity | Amount | Value• |
| | | Coupon | Date | ($000) | ($000) |
| | New Jersey Environmental Infrastructure Trust | | | | |
| | Revenue | 5.000% | 9/1/16 | 2,230 | 2,308 |
| 2 | New Jersey Environmental Infrastructure Trust | | | | |
| | Revenue TOB VRDO | 0.010% | 12/7/15 | 4,015 | 4,015 |
| 2,3 | New Jersey GO TOB PUT | 0.100% | 1/4/16 LOC | 50,000 | 50,000 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (AHS Hospital Corp.) VRDO | 0.010% | 12/7/15 LOC | 6,500 | 6,500 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (AHS Hospital Corp.) VRDO | 0.010% | 12/7/15 LOC | 15,585 | 15,585 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Hospital Capital Asset | | | | |
| | Pooled Program) VRDO | 0.010% | 12/7/15 LOC | 6,000 | 6,000 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Hospital Capital Asset | | | | |
| | Pooled Program) VRDO | 0.010% | 12/7/15 LOC | 23,600 | 23,600 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Hospital Capital Asset | | | | |
| | Pooled Program) VRDO | 0.010% | 12/7/15 LOC | 22,800 | 22,800 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Hospital Capital Asset | | | | |
| | Pooled Program) VRDO | 0.010% | 12/7/15 LOC | 18,950 | 18,950 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Meridian Health System | | | | |
| | Obligated Group) VRDO | 0.010% | 12/7/15 LOC | 25,140 | 25,140 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (MHAC I LLC) VRDO | 0.010% | 12/7/15 LOC | 6,000 | 6,000 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (MHAC I LLC) VRDO | 0.010% | 12/7/15 LOC | 5,540 | 5,540 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Rahway Hospital) VRDO | 0.010% | 12/7/15 LOC | 5,980 | 5,980 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Robert Wood Johnson | | | | |
| | University) VRDO | 0.010% | 12/7/15 LOC | 2,500 | 2,500 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Robert Wood Johnson | | | | |
| | University) VRDO | 0.010% | 12/7/15 LOC | 6,400 | 6,400 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Robert Wood Johnson | | | | |
| | University) VRDO | 0.010% | 12/7/15 LOC | 7,500 | 7,500 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Robert Wood Johnson | | | | |
| | University) VRDO | 0.010% | 12/7/15 LOC | 5,200 | 5,200 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (RWJ Health Care Corp.) | | | | |
| | VRDO | 0.010% | 12/7/15 LOC | 12,740 | 12,740 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Southern Ocean County | | | | |
| | Hospital) VRDO | 0.010% | 12/7/15 LOC | 10,145 | 10,145 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Underwood Memorial | | | | |
| | Hospital) VRDO | 0.010% | 12/7/15 LOC | 7,840 | 7,840 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Virtua Health) VRDO | 0.010% | 12/1/15 LOC | 3,700 | 3,700 |
| | New Jersey Health Care Facilities Financing | | | | |
| | Authority Revenue (Virtua Health) VRDO | 0.010% | 12/1/15 LOC | 13,680 | 13,680 |
17
New Jersey Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Virtua Health) VRDO | 0.010% | 12/7/15 LOC | 14,000 | 14,000 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Virtua Health) VRDO | 0.010% | 12/7/15 LOC | 18,200 | 18,200 |
| New Jersey Higher Education Assistance | | | | |
| Authority Student Loan Revenue | 5.000% | 12/1/15 | 2,000 | 2,000 |
| 2 New Jersey Higher Education Assistance | | | | |
| Authority Student Loan Revenue TOB VRDO | 0.020% | 12/7/15 | 3,970 | 3,970 |
| 2 New Jersey Higher Education Assistance | | | | |
| Authority Student Loan Revenue TOB VRDO | 0.030% | 12/7/15 LOC | 3,155 | 3,155 |
| 2 New Jersey Higher Education Assistance | | | | |
| Authority Student Loan Revenue TOB VRDO | 0.030% | 12/7/15 LOC | 3,995 | 3,995 |
| 2 New Jersey Higher Education Assistance | | | | |
| Authority Student Loan Revenue TOB VRDO | 0.160% | 12/7/15 | 26,985 | 26,985 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Multi-Family Housing Revenue | | | | |
| (Lincoln Towers Project) PUT | 0.480% | 9/1/16 | 7,500 | 7,500 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Multi-Family Housing Revenue VRDO | 0.010% | 12/7/15 LOC | 33,700 | 33,700 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Multi-Family Housing Revenue VRDO | 0.010% | 12/7/15 LOC | 6,715 | 6,715 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Single Family Housing Revenue VRDO | 0.010% | 12/7/15 | 4,565 | 4,565 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Single Family Housing Revenue VRDO | 0.010% | 12/7/15 | 21,585 | 21,585 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Single Family Housing Revenue VRDO | 0.020% | 12/7/15 | 15,610 | 15,610 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.250% | 12/15/15 (Prere.) | 3,915 | 3,923 |
| New Jersey Turnpike Authority Revenue | 6.500% | 1/1/16 (ETM) | 1,300 | 1,307 |
| North Bergen Township NJ BAN | 1.250% | 4/1/16 | 6,463 | 6,485 |
| 2 Nuveen New Jersey Dividend Advantage | | | | |
| Municipal Fund VRDP VRDO | 0.090% | 12/7/15 LOC | 2,700 | 2,700 |
| 2 Nuveen New Jersey Dividend Advantage | | | | |
| Municipal Fund VRDP VRDO | 0.090% | 12/7/15 LOC | 47,300 | 47,300 |
| 2 Nuveen New Jersey Dividend Advantage | | | | |
| Municipal Fund VRDP VRDO | 0.090% | 12/7/15 LOC | 10,000 | 10,000 |
| Ocean City NJ BAN | 1.000% | 12/3/15 | 4,160 | 4,160 |
| Ocean City NJ BAN | 2.000% | 6/17/16 | 5,000 | 5,042 |
| Ocean County NJ GO | 4.000% | 10/1/16 | 775 | 799 |
| Old Bridge Township NJ BAN | 1.000% | 4/15/16 | 4,698 | 4,710 |
| Paramus Borough NJ BAN | 1.000% | 2/19/16 | 5,900 | 5,909 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 4.000% | 12/1/15 | 3,700 | 3,700 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 2.000% | 5/1/16 | 6,500 | 6,548 |
| Port Authority of New York & New Jersey | | | | |
| Revenue CP | 0.060% | 12/2/15 | 18,810 | 18,810 |
| Port Authority of New York & New Jersey | | | | |
| Revenue CP | 0.020% | 12/9/15 | 12,750 | 12,750 |
| Port Authority of New York & New Jersey | | | | |
| Revenue CP | 0.040% | 12/9/15 | 5,010 | 5,010 |
| Port Authority of New York & New Jersey | | | | |
| Revenue CP | 0.030% | 12/17/15 | 4,640 | 4,640 |
| Port Authority of New York & New Jersey | | | | |
| Revenue CP | 0.070% | 12/22/15 | 2,820 | 2,820 |
18
New Jersey Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| Port Authority of New York & New Jersey | | | | |
| Revenue CP | 0.040% | 12/28/15 | 6,020 | 6,020 |
| Port Authority of New York & New Jersey | | | | |
| Revenue CP | 0.040% | 12/29/15 | 10,005 | 10,005 |
| Port Authority of New York & New Jersey | | | | |
| Revenue CP | 0.020% | 12/30/15 | 16,450 | 16,450 |
| 2 Port Authority of New York & New Jersey | | | | |
| Revenue TOB VRDO | 0.020% | 12/7/15 | 1,170 | 1,170 |
| 2 Port Authority of New York & New Jersey | | | | |
| Revenue TOB VRDO | 0.020% | 12/7/15 | 3,500 | 3,500 |
| 2 Port Authority of New York & New Jersey | | | | |
| Revenue TOB VRDO | 0.020% | 12/7/15 | 7,770 | 7,770 |
| 2 Port Authority of New York & New Jersey | | | | |
| Revenue TOB VRDO | 0.030% | 12/7/15 | 2,100 | 2,100 |
| 2 Port Authority of New York & New Jersey | | | | |
| Revenue TOB VRDO | 0.040% | 12/7/15 | 1,000 | 1,000 |
| Princeton University New Jersey CP | 0.040% | 12/1/15 | 24,000 | 24,000 |
| Princeton University New Jersey CP | 0.010% | 12/3/15 | 7,000 | 7,000 |
| Rahway NJ BAN | 2.000% | 6/29/16 | 2,269 | 2,288 |
| Rahway NJ BAN | 2.000% | 8/5/16 | 7,400 | 7,472 |
| Rockaway NJ BAN | 2.000% | 11/18/16 | 5,012 | 5,083 |
| 2 Rutgers State University New Jersey Revenue | | | | |
| TOB VRDO | 0.010% | 12/7/15 | 6,700 | 6,700 |
| 2 Rutgers State University New Jersey Revenue | | | | |
| TOB VRDO | 0.020% | 12/7/15 | 14,800 | 14,800 |
| 2 Rutgers State University New Jersey Revenue | | | | |
| TOB VRDO | 0.020% | 12/7/15 | 11,780 | 11,780 |
| 2 Rutgers State University New Jersey Revenue | | | | |
| TOB VRDO | 0.020% | 12/7/15 | 2,400 | 2,400 |
| Secaucus NJ BAN | 1.250% | 1/8/16 | 2,398 | 2,400 |
| Somerset County NJ BAN | 2.000% | 9/22/16 | 5,000 | 5,064 |
| Summit NJ GO | 1.000% | 4/22/16 | 32,866 | 32,976 |
| Sussex County NJ GO | 2.000% | 9/23/16 | 3,375 | 3,415 |
| Union County NJ Pollution Control Financing | | | | |
| Authority Revenue (Exxon Project) VRDO | 0.010% | 12/1/15 | 19,770 | 19,770 |
| Union County NJ Pollution Control Financing | | | | |
| Authority Revenue (Exxon Project) VRDO | 0.010% | 12/1/15 | 17,845 | 17,845 |
| West Orange Township NJ BAN | 1.250% | 12/15/15 | 3,099 | 3,100 |
| Woodbridge Township NJ BAN | 1.500% | 8/19/16 | 7,370 | 7,432 |
| Woodbridge Township NJ BAN | 2.000% | 8/19/16 | 15,000 | 15,180 |
| Total Tax-Exempt Municipal Bonds (Cost $1,330,902) | | | 1,330,902 |
19
New Jersey Tax-Exempt Money Market Fund
| |
| | Amount |
| | ($000) |
| Other Assets and Liabilities (1.0%) | |
| Other Assets | |
| Investment in Vanguard | 118 |
| Receivables for Capital Shares Issued | 3,600 |
| Receivables for Accrued Income | 2,117 |
| Other Assets | 25,205 |
| Total Other Assets | 31,040 |
| Liabilities | |
| Payables for Investment Securities Purchased | (10,752) |
| Payables for Capital Shares Redeemed | (2,485) |
| Payables to Vanguard | (4,086) |
| Total Liabilities | (17,323) |
| Net Assets (100%) | |
| Applicable to 1,344,336,463 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 1,344,619 |
| Net Asset Value Per Share | $1.00 |
| |
| At November 30, 2015, net assets consisted of: | |
| | Amount |
| | ($000) |
| Paid-in Capital | 1,344,624 |
| Undistributed Net Investment Income | — |
| Accumulated Net Realized Losses | (5) |
| Net Assets | 1,344,619 |
• See Note A in Notes to Financial Statements.
1 Security purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of November 30, 2015.
2 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. At November 30, 2015, the aggregate value of these securities was $231,835,000,
representing 17.2% of net assets.
3 Adjustable-rate security.
A key to abbreviations and other references follows the Statement of Net Assets.
See accompanying Notes, which are an integral part of the Financial Statements.
20
New Jersey Tax-Exempt Money Market Fund
Key to Abbreviations
ARS—Auction Rate Security.
BAN—Bond Anticipation Note.
COP—Certificate of Participation.
CP—Commercial Paper.
FR—Floating Rate.
GAN—Grant Anticipation Note.
GO—General Obligation Bond.
PILOT—Payments in Lieu of Taxes.
PUT—Put Option Obligation.
RAN—Revenue Anticipation Note.
TAN—Tax Anticipation Note.
TOB—Tender Option Bond.
TRAN—Tax Revenue Anticipation Note.
VRDO—Variable Rate Demand Obligation.
VRDP—Variable Rate Demand Preferred.
(ETM)—Escrowed to Maturity.
(Prere.)—Prerefunded.
Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Investors Assurance).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) AGM (Assured Guaranty Municipal Corporation).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty).
(12) AGC (Assured Guaranty Corporation).
(13) BHAC (Berkshire Hathaway Assurance Corporation).
(14) NPFG (National Public Finance Guarantee Corporation).
(15) BAM (Build America Mutual Assurance Company).
(16) MAC (Municipal Assurance Corporation).
(17) RAA (Radian Asset Assurance Inc).
The insurance does not guarantee the market value of the municipal bonds.
LOC—Scheduled principal and interest payments are guaranteed by bank letter of credit.
21
New Jersey Tax-Exempt Money Market Fund
Statement of Operations
| |
| | Year Ended |
| | November 30, 2015 |
| | ($000) |
| Investment Income | |
| Income | |
| Interest | 1,233 |
| Total Income | 1,233 |
| Expenses | |
| The Vanguard Group—Note B | |
| Investment Advisory Services | 292 |
| Management and Administrative | 1,562 |
| Marketing and Distribution | 349 |
| Custodian Fees | 16 |
| Auditing Fees | 29 |
| Shareholders’ Reports | 9 |
| Trustees’ Fees and Expenses | 1 |
| Total Expenses | 2,258 |
| Expense Reduction—Note B | (1,166) |
| Net Expenses | 1,092 |
| Net Investment Income | 141 |
| Realized Net Gain (Loss) on Investment Securities Sold | 6 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 147 |
See accompanying Notes, which are an integral part of the Financial Statements.
22
New Jersey Tax-Exempt Money Market Fund
Statement of Changes in Net Assets
| | |
| | Year Ended November 30, |
| | 2015 | 2014 |
| | ($000) | ($000) |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net Investment Income | 141 | 156 |
| Realized Net Gain (Loss) | 6 | (14) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 147 | 142 |
| Distributions | | |
| Net Investment Income | (141) | (156) |
| Realized Capital Gain | — | — |
| Total Distributions | (141) | (156) |
| Capital Share Transactions (at $1.00 per share) | | |
| Issued | 847,210 | 923,321 |
| Issued in Lieu of Cash Distributions | 136 | 151 |
| Redeemed | (976,302) | (1,071,016) |
| Net Increase (Decrease) from Capital Share Transactions | (128,956) | (147,544) |
| Total Increase (Decrease) | (128,950) | (147,558) |
| Net Assets | | |
| Beginning of Period | 1,473,569 | 1,621,127 |
| End of Period1 | 1,344,619 | 1,473,569 |
| 1 Net Assets—End of Period includes undistributed (overdistributed) net investment income of $0 and $0. |
See accompanying Notes, which are an integral part of the Financial Statements.
23
New Jersey Tax-Exempt Money Market Fund
Financial Highlights
| | | | | |
| For a Share Outstanding | Year Ended November 30, |
| Throughout Each Period | 2015 | 2014 | 2013 | 2012 | 2011 |
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Investment Operations | | | | | |
| Net Investment Income | .0001 | .0001 | .0001 | .0004 | .001 |
| Net Realized and Unrealized Gain (Loss) | | | | | |
| on Investments | — | — | — | — | — |
| Total from Investment Operations | .0001 | .0001 | .0001 | .0004 | .001 |
| Distributions | | | | | |
| Dividends from Net Investment Income | (.0001) | (.0001) | (.0001) | (.0004) | (.001) |
| Distributions from Realized Capital Gains | — | — | — | — | — |
| Total Distributions | (.0001) | (.0001) | (.0001) | (.0004) | (.001) |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| |
| Total Return1 | 0.01% | 0.01% | 0.01% | 0.04% | 0.06% |
| |
| Ratios/Supplemental Data | | | | | |
| Net Assets, End of Period (Millions) | $1,345 | $1,474 | $1,621 | $1,742 | $1,949 |
| Ratio of Expenses to Average Net Assets | 0.08%2 | 0.08%2 | 0.12%2 | 0.16% | 0.17% |
| Ratio of Net Investment Income to | | | | | |
| Average Net Assets | 0.01% | 0.01% | 0.01% | 0.03% | 0.07% |
1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
2 The ratio of total expenses to average net assets before an expense reduction was 0.16% for 2015, 0.16% for 2014, and 0.16% for 2013.
See Note B in Notes to Financial Statements.
See accompanying Notes, which are an integral part of the Financial Statements.
24
New Jersey Tax-Exempt Money Market Fund
Notes to Financial Statements
Vanguard New Jersey Tax-Exempt Money Market Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in debt instruments of municipal issuers whose ability to meet their obligations may be affected by economic and political developments in the state.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Securities are valued at amortized cost, which approximates market value.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (November 30, 2012–2015), and has concluded that no provision for federal income tax is required in the fund’s financial statements.
3. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month.
4. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.06% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate equal to the higher of the federal funds rate or LIBOR reference rate plus an agreed-upon spread.
The fund had no borrowings outstanding at November 30, 2015, or at any time during the period then ended.
5. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At November 30, 2015, the fund had contributed to Vanguard capital in the amount of $118,000 representing 0.01% of the fund’s net assets and 0.05% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
25
New Jersey Tax-Exempt Money Market Fund
Vanguard and the board of trustees have agreed to temporarily limit certain net operating expenses in excess of the fund’s daily yield in order to maintain a zero or positive yield for the fund. Vanguard and the board of trustees may terminate the temporary expense limitation at any time. For the year ended November 30, 2015, Vanguard’s expenses were reduced by $1,166,000 (an effective annual rate of 0.08% of the fund’s average net assets); the fund is not obligated to repay this amount to Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
At November 30, 2015, 100% of the market value of the fund’s investments was determined using amortized cost, in accordance with rules under the Investment Company Act of 1940. Amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, securities valued at amortized cost are considered to be valued using Level 2 inputs.
D. Management has determined that no material events or transactions occurred subsequent to November 30, 2015, that would require recognition or disclosure in these financial statements.
26
New Jersey Long-Term Tax-Exempt Fund
Fund Profile
As of November 30, 2015
| | |
| Share-Class Characteristics | |
| | Investor | Admiral |
| | Shares | Shares |
| Ticker Symbol | VNJTX | VNJUX |
| Expense Ratio1 | 0.20% | 0.12% |
| 30-Day SEC Yield | 2.78% | 2.85% |
| | | |
| Financial Attributes | | |
| |
| |
| | | Barclays | |
| | | NJ | Barclays |
| | | Muni | Municipal |
| | | Bond | Bond |
| | Fund | Index | Index |
| |
| Number of Bonds | 452 | 1,285 | 47,840 |
| |
| Yield to Maturity | | | |
| (before expenses) | 2.8% | 3.1% | 2.2% |
| |
| Average Coupon | 4.5% | 4.6% | 4.8% |
| |
| Average Duration | 6.4 years | 7.2 years | 6.4 years |
| |
| Average Stated | | | |
| Maturity | 15.4 years | 12.8 years | 13.1 years |
| |
| Short-Term | | | |
| Reserves | 5.1% | — | — |
| | |
| Volatility Measures | | |
| | Barclays NJ | Barclays |
| | Muni Bond | Municipal |
| | Index | Bond Index |
| R-Squared | 0.97 | 0.97 |
| Beta | 1.03 | 1.17 |
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
| |
| Distribution by Stated Maturity | |
| (% of portfolio) | |
| Under 1 Year | 6.3% |
| 1 - 3 Years | 2.7 |
| 3 - 5 Years | 4.7 |
| 5 - 10 Years | 13.7 |
| 10 - 20 Years | 41.4 |
| 20 - 30 Years | 29.2 |
| Over 30 Years | 2.0 |
| |
| Distribution by Credit Quality (% of portfolio) |
| AAA | 3.7% |
| AA | 27.6 |
| A | 54.6 |
| BBB | 10.6 |
| BB | 0.9 |
| B | 0.8 |
| Not Rated | 1.8 |
Credit-quality ratings are obtained from Moody's and S&P, and the higher rating for each issue is shown. "Not Rated" is used to
classify securities for which a rating is not available. Not rated securities include a fund's investment in Vanguard Market Liquidity
Fund or Vanguard Municipal Cash Management Fund, each of which invests in high-quality money market instruments and may
serve as a cash management vehicle for the Vanguard funds, trusts, and accounts. For more information about these ratings, see
the Glossary entry for Credit Quality.
Investment Focus
1 The expense ratios shown are from the prospectus dated March 26, 2015, and represent estimated costs for the current fiscal year. For the
fiscal year ended November 30, 2015, the expense ratios were 0.20% for Investor Shares and 0.12% for Admiral Shares.
27
New Jersey Long-Term Tax-Exempt Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: November 30, 2005, Through November 30, 2015
Initial Investment of $10,000
| | | | | |
| | | Average Annual Total Returns | |
| | | Periods Ended November 30, 2015 | |
| | | | | | Final Value |
| | | One | Five | Ten | of a $10,000 |
| | | Year | Years | Years | Investment |
| | New Jersey Long-Term Tax-Exempt | | | | |
| | Fund Investor Shares | 2.17% | 4.62% | 4.38% | $15,352 |
| •••••••• | Barclays NJ Municipal Bond Index | 1.34 | 4.48 | 4.56 | 15,614 |
| – – – – | New Jersey Municipal Debt Funds | | | | |
| |
| | Average | 1.92 | 4.26 | 3.88 | 14,634 |
| | Barclays Municipal Bond Index | 3.10 | 4.79 | 4.73 | 15,878 |
| New Jersey Municipal Debt Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. |
| | | | |
| | | | | Final Value |
| | One | Five | Ten | of a $50,000 |
| | Year | Years | Years | Investment |
| New Jersey Long-Term Tax-Exempt Fund | | | | |
| Admiral Shares | 2.25% | 4.70% | 4.46% | $77,352 |
| Barclays NJ Municipal Bond Index | 1.34 | 4.48 | 4.56 | 78,068 |
| Barclays Municipal Bond Index | 3.10 | 4.79 | 4.73 | 79,388 |
See Financial Highlights for dividend and capital gains information.
28
New Jersey Long-Term Tax-Exempt Fund
Fiscal-Year Total Returns (%): November 30, 2005, Through November 30, 2015
| | | | |
| | | | | Barclays NJ |
| | | | | Muni Bond |
| | | | Investor Shares | Index |
| Fiscal Year | Income Returns | Capital Returns | Total Returns | Total Returns |
| 2006 | 4.61% | 2.40% | 7.01% | 6.85% |
| 2007 | 4.34 | -2.30 | 2.04 | 2.15 |
| 2008 | 4.11 | -7.60 | -3.49 | -2.61 |
| 2009 | 4.61 | 7.58 | 12.19 | 13.15 |
| 2010 | 4.11 | -0.52 | 3.59 | 4.28 |
| 2011 | 4.24 | 1.30 | 5.54 | 5.85 |
| 2012 | 3.91 | 7.16 | 11.07 | 11.65 |
| 2013 | 3.41 | -7.24 | -3.83 | -3.31 |
| 2014 | 3.82 | 5.00 | 8.82 | 7.49 |
| 2015 | 3.55 | -1.38 | 2.17 | 1.34 |
Average Annual Total Returns: Periods Ended September 30, 2015
This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.
Securities and Exchange Commission rules require that we provide this information.
| | | | | | |
| | | | | Ten Years |
| | Inception Date | One Year | Five Years | Income | Capital | Total |
| Investor Shares | 2/3/1988 | 1.49% | 3.84% | 4.08% | 0.15% | 4.23% |
| Admiral Shares | 5/14/2001 | 1.57 | 3.93 | 4.16 | 0.15 | 4.31 |
29
New Jersey Long-Term Tax-Exempt Fund
Financial Statements
Statement of Net Assets
As of November 30, 2015
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| Tax-Exempt Municipal Bonds (99.1%) | | | | |
| New Jersey (97.8%) | | | | |
| Atlantic City NJ GO | 4.000% | 11/1/16 | 2,700 | 2,497 |
| Atlantic City NJ GO | 4.000% | 11/1/17 | 3,965 | 3,546 |
| Atlantic City NJ GO | 5.000% | 11/1/22 | 3,000 | 2,445 |
| Atlantic City NJ GO | 4.000% | 11/1/23 (4) | 1,425 | 1,439 |
| Bayonne NJ GO | 5.750% | 7/1/35 | 7,500 | 8,297 |
| Bergen County NJ Improvement Authority | | | | |
| Pooled Loan Revenue | 5.000% | 2/15/20 | 455 | 526 |
| Bergen County NJ Improvement Authority | | | | |
| Pooled Loan Revenue | 5.000% | 2/15/39 | 4,000 | 4,566 |
| Burlington County NJ Bridge Commission | | | | |
| Revenue | 5.000% | 12/1/29 | 275 | 317 |
| Burlington County NJ Bridge Commission | | | | |
| Revenue (Burlington County Solid Waste | | | | |
| Project) | 5.000% | 10/1/26 | 2,100 | 2,469 |
| Burlington County NJ Bridge Commission | | | | |
| Revenue (Burlington County Solid Waste Project) | 5.000% | 10/1/27 | 4,100 | 4,787 |
| Camden County NJ Improvement Authority | | | | |
| Health Care Redevelopment Project Revenue | | | | |
| (Cooper Health System Obligated Group) | 5.000% | 2/15/28 | 1,500 | 1,658 |
| Camden County NJ Improvement Authority | | | | |
| Health Care Redevelopment Project Revenue | | | | |
| (Cooper Health System Obligated Group) | 5.000% | 2/15/29 | 3,500 | 3,830 |
| Camden County NJ Improvement Authority | | | | |
| Health Care Redevelopment Project Revenue | | | | |
| (Cooper Health System Obligated Group) | 5.000% | 2/15/30 | 2,900 | 3,150 |
| Camden County NJ Improvement Authority | | | | |
| Health Care Redevelopment Project Revenue | | | | |
| (Cooper Health System Obligated Group) | 5.000% | 2/15/31 | 2,500 | 2,708 |
| Camden County NJ Improvement Authority | | | | |
| Health Care Redevelopment Project Revenue | | | | |
| (Cooper Health System Obligated Group) | 5.000% | 2/15/32 | 2,500 | 2,699 |
| Camden County NJ Improvement Authority | | | | |
| Health Care Redevelopment Project Revenue | | | | |
| (Cooper Health System Obligated Group) | 5.000% | 2/15/33 | 1,000 | 1,078 |
| Camden County NJ Improvement Authority | | | | |
| Health Care Redevelopment Project Revenue | | | | |
| (Cooper Health System Obligated Group) | 5.000% | 2/15/34 | 1,500 | 1,616 |
30
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| Camden County NJ Improvement Authority | | | | |
| Health Care Redevelopment Project Revenue | | | | |
| (Cooper Health System Obligated Group) | 5.750% | 2/15/42 | 12,625 | 14,283 |
| Camden County NJ Improvement Authority | | | | |
| Lease Revenue (Rowan University School of | | | | |
| Osteopathic Medicine Project) | 5.000% | 12/1/32 | 6,035 | 6,806 |
| Camden County NJ Improvement Authority | | | | |
| Revenue | 5.000% | 1/15/28 | 3,600 | 4,073 |
| Camden County NJ Improvement Authority | | | | |
| Revenue | 5.000% | 1/15/29 | 3,225 | 3,622 |
| Delaware River & Bay Authority Delaware | | | | |
| Revenue | 5.000% | 1/1/25 | 1,790 | 2,155 |
| Delaware River & Bay Authority Delaware | | | | |
| Revenue | 5.000% | 1/1/26 | 2,000 | 2,383 |
| Delaware River & Bay Authority Delaware | | | | |
| Revenue | 5.000% | 1/1/27 | 2,000 | 2,364 |
| Delaware River & Bay Authority Delaware | | | | |
| Revenue | 5.000% | 1/1/28 | 2,250 | 2,631 |
| Delaware River & Bay Authority Delaware | | | | |
| Revenue | 5.000% | 1/1/42 | 9,980 | 11,091 |
| Delaware River Joint Toll Bridge Commission | | | | |
| Pennsylvania & New Jersey Revenue | 5.000% | 7/1/24 | 1,200 | 1,402 |
| Delaware River Joint Toll Bridge Commission | | | | |
| Pennsylvania & New Jersey Revenue | 5.000% | 7/1/26 | 1,000 | 1,148 |
| Delaware River Joint Toll Bridge Commission | | | | |
| Pennsylvania & New Jersey Revenue | 5.000% | 7/1/29 | 300 | 352 |
| Delaware River Joint Toll Bridge Commission | | | | |
| Pennsylvania & New Jersey Revenue | 5.000% | 7/1/31 | 500 | 580 |
| Delaware River Joint Toll Bridge Commission | | | | |
| Pennsylvania & New Jersey Revenue | 4.000% | 7/1/34 (15) | 2,660 | 2,798 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue | 5.000% | 1/1/21 | 3,160 | 3,550 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue | 5.000% | 1/1/26 | 4,335 | 4,871 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue | 5.000% | 1/1/27 | 2,660 | 2,981 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue | 5.000% | 1/1/28 | 6,000 | 6,693 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue | 5.000% | 1/1/29 | 4,000 | 4,462 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue | 5.000% | 1/1/30 | 5,000 | 5,592 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue | 5.000% | 1/1/35 | 9,060 | 10,072 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue | 5.000% | 1/1/37 | 15,000 | 16,921 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue | 5.000% | 1/1/40 (4) | 1,000 | 1,113 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue | 5.000% | 1/1/40 | 2,500 | 2,809 |
| Delaware River Port Authority Pennsylvania & | | | | |
| New Jersey Revenue VRDO | 0.010% | 12/7/15 LOC | 7,725 | 7,725 |
| Flemington Raritan NJ School District GO | 5.000% | 6/15/26 | 1,000 | 1,203 |
| Garden State Preservation Trust New Jersey | | | | |
| Revenue (Open Space & Farmland Preservation) | 0.000% | 11/1/22 (4) | 7,190 | 6,173 |
31
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| Garden State Preservation Trust New Jersey | | | | |
| Revenue (Open Space & Farmland Preservation) | 5.750% | 11/1/28 (4) | 18,545 | 23,095 |
| Gloucester County NJ Improvement Authority | | | | |
| Revenue (Rowan University) | 5.000% | 7/1/30 | 3,910 | 4,456 |
| Gloucester County NJ Improvement Authority | | | | |
| Revenue (Rowan University) | 5.000% | 7/1/31 | 1,950 | 2,220 |
| Gloucester County NJ Improvement Authority | | | | |
| Revenue (Rowan University) | 5.000% | 7/1/32 | 1,775 | 2,012 |
| Gloucester County NJ Improvement Authority | | | | |
| Revenue (Rowan University) | 5.000% | 7/1/33 | 2,275 | 2,569 |
| Gloucester County NJ Improvement Authority | | | | |
| Revenue (Rowan University) | 5.000% | 7/1/34 | 1,200 | 1,351 |
| Gloucester County NJ Improvement Authority | | | | |
| Revenue (Rowan University) | 4.000% | 7/1/42 (4) | 2,000 | 2,019 |
| Gloucester County NJ Improvement Authority | | | | |
| Revenue (Rowan University) | 5.000% | 7/1/44 | 1,500 | 1,642 |
| Gloucester Township NJ Municipal Utility | | | | |
| Authority Revenue | 5.650% | 3/1/18 (2) | 1,070 | 1,123 |
| Hillsborough Township NJ School District GO | 5.375% | 10/1/19 (4) | 1,720 | 1,975 |
| Hudson County NJ Improvement Authority | | | | |
| Essential Purpose Pooled Governmental Loan | | | | |
| Revenue VRDO | 0.010% | 12/7/15 LOC | 5,000 | 5,000 |
| Hudson County NJ Improvement Authority Lease | | | | |
| Revenue | 5.000% | 4/1/26 | 790 | 902 |
| Hudson County NJ Improvement Authority Solid | | | | |
| Waste Systems Revenue | 5.750% | 1/1/35 | 2,000 | 2,292 |
| Hudson County NJ Improvement Authority Solid | | | | |
| Waste Systems Revenue | 6.000% | 1/1/40 | 3,000 | 3,407 |
| Jersey City NJ GO | 5.000% | 3/1/19 | 1,550 | 1,720 |
| Jersey City NJ GO | 5.000% | 3/1/22 | 1,750 | 2,033 |
| Mercer County NJ Improvement Authority | | | | |
| Revenue (Courthouse Annex Project) | 5.000% | 9/1/40 | 2,480 | 2,838 |
| Monmouth County NJ Improvement Authority | | | | |
| Lease Revenue (Brookdale Community College) | 5.875% | 8/1/18 (Prere.) | 1,000 | 1,129 |
| Monmouth County NJ Improvement Authority | | | | |
| Lease Revenue (Brookdale Community College) | 6.000% | 8/1/18 (Prere.) | 3,900 | 4,414 |
| Monmouth County NJ Improvement Authority | | | | |
| Revenue (Pooled Government Loan) | 5.000% | 12/1/16 (ETM) | 5 | 5 |
| Monroe Township NJ Board of Education GO | 5.000% | 3/1/34 | 1,250 | 1,448 |
| Monroe Township NJ Board of Education GO | 5.000% | 3/1/38 | 3,000 | 3,427 |
| New Brunswick NJ Parking Authority Revenue | 5.000% | 9/1/20 | 1,605 | 1,830 |
| New Brunswick NJ Parking Authority Revenue | 5.000% | 9/1/21 | 1,000 | 1,157 |
| New Brunswick NJ Parking Authority Revenue | 5.000% | 9/1/22 | 1,880 | 2,197 |
| New Brunswick NJ Parking Authority Revenue | 5.000% | 9/1/24 | 1,035 | 1,205 |
| New Brunswick NJ Parking Authority Revenue | 5.000% | 9/1/25 | 615 | 710 |
| New Brunswick NJ Parking Authority Revenue | 5.000% | 9/1/28 | 465 | 527 |
| New Brunswick NJ Parking Authority Revenue | 5.000% | 9/1/30 | 570 | 639 |
| New Brunswick NJ Parking Authority Revenue | 5.000% | 9/1/31 | 600 | 671 |
| New Jersey Building Authority Revenue | 5.000% | 6/15/16 | 2,250 | 2,298 |
| New Jersey Casino Reinvestment Development | | | | |
| Authority Revenue (Hotel Room Fee) | 5.250% | 1/1/20 (2) | 3,045 | 3,116 |
| New Jersey Casino Reinvestment Development | | | | |
| Authority Revenue (Hotel Room Fee) | 5.250% | 1/1/21 (2) | 6,255 | 6,399 |
| New Jersey Casino Reinvestment Development | | | | |
| Authority Revenue (Hotel Room Fee) | 5.250% | 1/1/22 (2) | 5,585 | 5,713 |
32
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Casino Reinvestment Development | | | | |
| Authority Revenue (Luxury Tax) | 5.000% | 11/1/28 (4) | 2,000 | 2,184 |
| New Jersey Casino Reinvestment Development | | | | |
| Authority Revenue (Luxury Tax) | 5.000% | 11/1/29 (4) | 2,500 | 2,715 |
| New Jersey Casino Reinvestment Development | | | | |
| Authority Revenue (Luxury Tax) | 5.000% | 11/1/30 (4) | 2,950 | 3,188 |
| New Jersey Casino Reinvestment Development | | | | |
| Authority Revenue (Luxury Tax) | 5.000% | 11/1/31 (4) | 1,500 | 1,613 |
| New Jersey Casino Reinvestment Development | | | | |
| Authority Revenue (Luxury Tax) | 5.000% | 11/1/32 (4) | 1,250 | 1,341 |
| New Jersey Casino Reinvestment Development | | | | |
| Authority Revenue (Luxury Tax) | 5.250% | 11/1/44 | 11,735 | 11,776 |
| New Jersey Casino Reinvestment Development | | | | |
| Authority Revenue (Parking Fee) | 5.250% | 6/1/21 (14) | 3,000 | 3,010 |
| New Jersey Economic Development Authority | | | | |
| Lease Revenue (Rutgers State University) | 5.000% | 6/15/38 | 4,000 | 4,519 |
| New Jersey Economic Development Authority | | | | |
| Lease Revenue (Rutgers State University) | 5.000% | 6/15/46 | 4,475 | 5,013 |
| New Jersey Economic Development Authority | | | | |
| Retirement Community Revenue (Seabrook | | | | |
| Village Inc.) | 5.250% | 11/15/16 (Prere.) | 935 | 977 |
| New Jersey Economic Development Authority | | | | |
| Revenue | 5.000% | 6/15/23 | 6,500 | 7,070 |
| New Jersey Economic Development Authority | | | | |
| Revenue | 4.125% | 6/15/26 | 2,500 | 2,508 |
| New Jersey Economic Development Authority | | | | |
| Revenue | 4.125% | 6/15/27 | 2,750 | 2,758 |
| New Jersey Economic Development Authority | | | | |
| Revenue | 5.250% | 6/15/32 | 10,000 | 10,640 |
| New Jersey Economic Development Authority | | | | |
| Revenue | 5.250% | 6/15/33 | 6,000 | 6,360 |
| New Jersey Economic Development Authority | | | | |
| Revenue | 5.250% | 6/15/40 | 10,000 | 10,497 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Cigarette Tax) | 5.000% | 6/15/18 | 1,030 | 1,097 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Cigarette Tax) | 5.000% | 6/15/23 | 2,500 | 2,725 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Cigarette Tax) | 5.000% | 6/15/25 | 5,990 | 6,438 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Cigarette Tax) | 5.000% | 6/15/26 | 8,500 | 9,075 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Cigarette Tax) | 5.000% | 6/15/28 | 2,000 | 2,112 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Cigarette Tax) | 5.000% | 6/15/29 | 1,400 | 1,471 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Duke Farms Foundation Project) | 5.000% | 7/1/48 | 7,000 | 7,768 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Lions Gate Project) | 5.000% | 1/1/34 | 1,500 | 1,529 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Lions Gate Project) | 5.125% | 1/1/39 | 2,000 | 2,041 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Lions Gate Project) | 5.250% | 1/1/44 | 5,850 | 5,983 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Motor Vehicle Surcharges) | 5.250% | 7/1/24 (14) | 6,000 | 6,849 |
33
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Economic Development Authority | | | | |
| Revenue (Motor Vehicle Surcharges) | 5.250% | 7/1/25 (14) | 14,000 | 16,048 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Motor Vehicle Surcharges) | 5.250% | 7/1/26 (14) | 2,500 | 2,864 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Motor Vehicle Surcharges) | 5.250% | 7/1/31 (14) | 17,675 | 17,886 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 9/1/17 (ETM) | 1,800 | 1,932 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 12/15/17 (ETM) | 2,920 | 3,168 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 12/15/17 | 120 | 126 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 9/1/18 (ETM) | 1,835 | 2,033 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 9/1/18 | 665 | 707 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.500% | 9/1/18 (ETM) | 3,000 | 3,365 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/19 (ETM) | 3,070 | 3,451 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 9/1/19 (Prere.) | 8,000 | 9,116 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 9/1/19 (Prere.) | 4,065 | 4,632 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 9/1/19 (ETM) | 2,190 | 2,517 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 9/1/19 | 810 | 878 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 12/15/19 | 2,100 | 2,264 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.500% | 12/15/19 (2) | 3,550 | 3,899 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 3/1/21 (Prere.) | 3,005 | 3,572 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 3/1/21 (Prere.) | 1,210 | 1,438 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.750% | 3/1/21 (Prere.) | 2,700 | 3,277 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 9/1/22 | 1,110 | 1,201 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 9/1/23 | 2,290 | 2,459 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.750% | 9/1/23 | 300 | 332 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/24 | 3,650 | 3,924 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 9/1/24 | 375 | 404 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.500% | 9/1/24 (2) | 1,500 | 1,682 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/25 | 2,500 | 2,681 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 6/15/25 (4) | 2,380 | 2,686 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 9/1/25 | 3,460 | 3,717 |
34
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.500% | 9/1/25 (4) | 1,660 | 1,938 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/26 | 5,000 | 5,337 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.250% | 9/1/26 | 3,000 | 3,218 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/27 | 5,000 | 5,317 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/28 | 21,965 | 23,210 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.500% | 9/1/28 (14) | 2,165 | 2,472 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/29 | 7,500 | 7,867 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.500% | 9/1/29 (14) | 7,055 | 8,061 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.500% | 12/15/29 | 11,520 | 12,171 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/30 | 6,360 | 6,622 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 6/15/30 | 6,975 | 7,280 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 6/15/31 | 4,000 | 4,166 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 12/15/31 | 7,105 | 7,293 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/32 | 4,005 | 4,146 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 12/15/32 | 3,780 | 3,874 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 6/15/33 (4) | 1,500 | 1,623 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 6/15/34 | 2,685 | 2,773 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/35 | 12,095 | 12,386 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 3/1/38 | 5,000 | 5,094 |
| New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) | 5.000% | 6/15/40 | 11,515 | 11,780 |
| 1 New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) TOB | | | | |
| VRDO | 0.120% | 12/7/15 (4) | 1,570 | 1,570 |
| 1 New Jersey Economic Development Authority | | | | |
| Revenue (School Facilities Construction) TOB | | | | |
| VRDO | 0.130% | 12/7/15 (12) | 1,235 | 1,235 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Seeing Eye Inc.) | 5.000% | 3/1/25 | 4,000 | 4,874 |
| New Jersey Economic Development Authority | | | | |
| Revenue (United Methodist Homes Obligated | | | | |
| Group) | 4.000% | 7/1/24 | 2,000 | 2,080 |
| New Jersey Economic Development Authority | | | | |
| Revenue (United Methodist Homes Obligated | | | | |
| Group) | 5.000% | 7/1/29 | 2,000 | 2,164 |
| New Jersey Economic Development Authority | | | | |
| Revenue (West Campus Housing LLC) | 5.000% | 7/1/35 | 5,950 | 6,019 |
35
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Economic Development Authority | | | | |
| Revenue (West Campus Housing LLC) | 5.000% | 7/1/47 | 7,515 | 7,479 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Provident Group-Montclair Properties | | | | |
| LLC - Montclair State University Student | | | | |
| Housing Project) | 5.000% | 6/1/18 | 1,390 | 1,481 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Provident Group-Montclair Properties | | | | |
| LLC - Montclair State University Student | | | | |
| Housing Project) | 5.375% | 6/1/25 | 1,340 | 1,494 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Provident Group-Montclair Properties | | | | |
| LLC - Montclair State University Student | | | | |
| Housing Project) | 5.750% | 6/1/31 | 1,160 | 1,294 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Provident Group-Montclair Properties | | | | |
| LLC - Montclair State University Student | | | | |
| Housing Project) | 5.875% | 6/1/42 | 8,280 | 9,189 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Provident Group-Rowan Properties | | | | |
| LLC - Rowan University Housing Project) | 5.000% | 1/1/30 | 2,515 | 2,721 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Provident Group-Rowan Properties | | | | |
| LLC - Rowan University Housing Project) | 5.000% | 1/1/35 | 2,000 | 2,124 |
| New Jersey Economic Development Authority | | | | |
| Revenue (Provident Group-Rowan Properties | | | | |
| LLC - Rowan University Housing Project) | 5.000% | 1/1/48 | 12,000 | 12,515 |
| New Jersey Economic Development Authority | | | | |
| Sublease Revenue (New Jersey Transit Corp. | | | | |
| Light Rail Transit System Project) | 5.000% | 5/1/18 | 6,260 | 6,618 |
| New Jersey Economic Development Authority | | | | |
| Sublease Revenue (New Jersey Transit Corp. | | | | |
| Light Rail Transit System Project) | 5.000% | 5/1/19 | 2,580 | 2,762 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (College of New Jersey) | 5.000% | 7/1/19 | 1,105 | 1,233 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (College of New Jersey) | 5.000% | 7/1/38 | 1,250 | 1,377 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (College of New Jersey) | 5.000% | 7/1/43 | 2,500 | 2,743 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Georgian Court University) | 5.000% | 7/1/27 | 1,000 | 1,044 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Georgian Court University) | 5.000% | 7/1/33 | 1,000 | 1,046 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Higher Education Trust Fund) | 5.000% | 9/1/19 (4) | 5,000 | 5,020 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Higher Education Trust Fund) | 5.000% | 6/1/21 | 4,335 | 4,702 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Kean University) | 5.000% | 7/1/17 (Prere.) | 2,585 | 2,759 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Kean University) | 5.000% | 7/1/17 (Prere.) | 3,025 | 3,228 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Kean University) | 5.000% | 7/1/17 (Prere.) | 3,000 | 3,202 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Kean University) | 5.000% | 7/1/27 (4) | 885 | 1,026 |
36
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Kean University) | 5.250% | 9/1/29 | 2,980 | 3,312 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Kean University) | 5.500% | 9/1/36 | 12,500 | 14,040 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Montclair State University) | 5.000% | 7/1/16 (Prere.) | 5,000 | 5,135 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Montclair State University) | 5.000% | 7/1/32 | 4,920 | 5,624 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Montclair State University) | 5.000% | 7/1/33 | 3,170 | 3,618 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Montclair State University) | 5.000% | 7/1/34 | 2,000 | 2,277 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Montclair State University) | 5.000% | 7/1/35 | 2,100 | 2,382 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Montclair State University) | 5.000% | 7/1/36 | 1,150 | 1,301 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Montclair State University) | 5.000% | 7/1/39 | 8,000 | 8,896 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (New Jersey City University) | 5.000% | 7/1/40 | 4,000 | 4,410 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (New Jersey City University) | 5.000% | 7/1/45 | 1,000 | 1,094 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (New Jersey Institute of Technology) | 5.000% | 7/1/21 | 2,635 | 2,986 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (New Jersey Institute of Technology) | 5.000% | 7/1/31 | 1,000 | 1,121 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) | 5.000% | 7/1/20 | 6,020 | 6,829 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) | 5.000% | 7/1/27 | 5,000 | 5,871 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) | 5.000% | 7/1/28 | 1,500 | 1,863 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) | 5.000% | 7/1/28 | 4,780 | 5,938 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) | 5.000% | 7/1/30 | 4,090 | 4,814 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) | 5.000% | 7/1/34 | 2,000 | 2,349 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) | 4.500% | 7/1/35 | 7,400 | 7,948 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) | 5.000% | 7/1/35 | 2,000 | 2,349 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Princeton University) | 5.000% | 7/1/39 | 3,000 | 3,365 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Ramapo College) | 5.000% | 7/1/29 | 1,430 | 1,596 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Ramapo College) | 5.000% | 7/1/30 | 1,500 | 1,666 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Ramapo College) | 5.000% | 7/1/31 | 1,575 | 1,742 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Ramapo College) | 5.000% | 7/1/37 | 2,065 | 2,255 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Ramapo College) | 5.000% | 7/1/40 | 2,150 | 2,370 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Ramapo College) | 5.000% | 7/1/42 | 2,390 | 2,597 |
37
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Richard Stockton College) | 5.500% | 7/1/23 | 1,265 | 1,395 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Richard Stockton College) | 5.375% | 7/1/38 | 8,395 | 9,093 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Rowan University) | 5.000% | 7/1/16 (Prere.) | 405 | 416 |
| 2 New Jersey Educational Facilities Authority | | | | |
| Revenue (Rowan University) | 5.000% | 7/1/16 (Prere.) | 1,450 | 1,490 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Rowan University) | 5.000% | 7/1/24 (14) | 750 | 770 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Seton Hall University) | 5.000% | 7/1/31 | 1,165 | 1,327 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Seton Hall University) | 5.000% | 7/1/33 | 430 | 486 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Seton Hall University) | 5.000% | 7/1/33 | 1,000 | 1,115 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Seton Hall University) | 5.000% | 7/1/34 | 850 | 957 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Seton Hall University) | 5.000% | 7/1/37 | 1,345 | 1,502 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Seton Hall University) | 5.000% | 7/1/38 | 1,200 | 1,322 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (Seton Hall University) | 5.000% | 7/1/43 | 1,500 | 1,646 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (University Medical & Dentistry) | 6.250% | 12/1/18 (ETM) | 420 | 483 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (University Medical & Dentistry) | 7.125% | 6/1/19 (Prere.) | 65 | 78 |
| New Jersey Educational Facilities Authority | | | | |
| Revenue (University Medical & Dentistry) | 7.500% | 6/1/19 (Prere.) | 7,250 | 8,793 |
| New Jersey Environmental Infrastructure Trust | | | | |
| Revenue | 5.000% | 9/1/19 (Prere.) | 405 | 462 |
| New Jersey Environmental Infrastructure Trust | | | | |
| Revenue | 5.000% | 9/1/19 (Prere.) | 180 | 205 |
| New Jersey Environmental Infrastructure Trust | | | | |
| Revenue | 5.000% | 9/1/19 (Prere.) | 135 | 154 |
| New Jersey Environmental Infrastructure Trust | | | | |
| Revenue | 5.000% | 9/1/26 | 2,590 | 3,216 |
| New Jersey Environmental Infrastructure Trust | | | | |
| Revenue | 5.000% | 9/1/28 | 3,690 | 4,128 |
| New Jersey Equipment Lease Purchase COP | 5.000% | 6/15/23 | 3,000 | 3,227 |
| New Jersey GO | 5.000% | 8/15/19 | 5,000 | 5,573 |
| New Jersey GO | 5.000% | 6/1/28 | 2,180 | 2,492 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Lease Revenue (Greystone Park | | | | |
| Psychiatric Hospital Project) | 5.000% | 9/15/27 | 11,095 | 11,811 |
| New Jersey Health Care Facilities Financing | | | �� | |
| Authority Lease Revenue (Marlboro Psychiatric | | | | |
| Hospital Project) | 5.000% | 9/15/33 | 5,085 | 5,260 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (AHS Hospital Corp.) | 5.000% | 7/1/18 | 4,095 | 4,471 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (AHS Hospital Corp.) | 5.000% | 7/1/27 | 2,195 | 2,371 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (AHS Hospital Corp.) | 5.500% | 7/1/31 | 95 | 111 |
38
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (AHS Hospital Corp.) | 6.000% | 7/1/41 | 1,500 | 1,772 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (AtlantiCare Regional | | | | |
| Medical Center) | 5.000% | 7/1/23 | 2,675 | 2,822 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (AtlantiCare Regional | | | | |
| Medical Center) | 5.000% | 7/1/26 | 2,780 | 2,919 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (AtlantiCare Regional | | | | |
| Medical Center) | 5.000% | 7/1/37 | 10,000 | 10,439 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Barnabas Health) | 5.000% | 7/1/44 | 22,650 | 24,642 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hackensack University | | | | |
| Medical Center) | 5.000% | 1/1/19 | 2,170 | 2,368 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hackensack University | | | | |
| Medical Center) | 5.000% | 1/1/20 | 3,000 | 3,333 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hackensack University | | | | |
| Medical Center) | 5.125% | 1/1/21 | 15,000 | 15,975 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hackensack University | | | | |
| Medical Center) | 5.000% | 1/1/22 | 3,500 | 3,884 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hackensack University | | | | |
| Medical Center) | 5.000% | 1/1/28 | 3,500 | 3,834 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hackensack University | | | | |
| Medical Center) | 5.000% | 1/1/34 | 2,000 | 2,165 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Holy Name Medical Center) | 5.000% | 7/1/25 | 3,215 | 3,425 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hospital Asset | | | | |
| Transformation Program) | 5.500% | 10/1/23 | 10,000 | 10,819 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hospital Asset | | | | |
| Transformation Program) | 5.750% | 10/1/31 | 2,505 | 2,766 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hospital Capital Asset | | | | |
| Pooled Program) VRDO | 0.010% | 12/7/15 LOC | 2,200 | 2,200 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hospital Capital Asset | | | | |
| Pooled Program) VRDO | 0.010% | 12/7/15 LOC | 5,600 | 5,600 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hunterdon Medical Center | | | | |
| Obligated Group) | 5.000% | 7/1/31 | 700 | 782 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hunterdon Medical Center | | | | |
| Obligated Group) | 5.000% | 7/1/32 | 800 | 888 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hunterdon Medical Center | | | | |
| Obligated Group) | 5.000% | 7/1/33 | 1,585 | 1,753 |
39
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hunterdon Medical Center | | | | |
| Obligated Group) | 5.000% | 7/1/34 | 1,415 | 1,563 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hunterdon Medical Center | | | | |
| Obligated Group) | 5.000% | 7/1/45 | 4,050 | 4,444 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Hunterdon Medical Center) | 5.250% | 7/1/16 (Prere.) | 1,200 | 1,235 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Kennedy Health Systems) | 5.000% | 7/1/31 | 2,910 | 3,193 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Kennedy Health Systems) | 5.000% | 7/1/37 | 4,960 | 5,358 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Kennedy Health Systems) | 5.000% | 7/1/42 | 1,750 | 1,886 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Meridian Health System | | | | |
| Obligated Group) | 5.000% | 7/1/24 | 5,000 | 5,876 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Meridian Health System | | | | |
| Obligated Group) | 5.000% | 7/1/25 | 2,000 | 2,336 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Meridian Health System | | | | |
| Obligated Group) | 5.000% | 7/1/26 | 2,225 | 2,580 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Meridian Health System | | | | |
| Obligated Group) | 5.000% | 7/1/27 | 1,310 | 1,503 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Meridian Health System | | | | |
| Obligated Group) | 5.000% | 7/1/27 | 3,635 | 4,187 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Meridian Health System | | | | |
| Obligated Group) | 5.000% | 7/1/32 | 2,000 | 2,238 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Meridian Health System | | | | |
| Obligated Group) | 5.000% | 7/1/38 (12) | 570 | 602 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Meridian Health System | | | | |
| Obligated Group) | 5.000% | 7/1/38 (12) | 4,170 | 4,406 |
| 1 New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Meridian V) TOB VRDO | 0.160% | 12/7/15 (12) | 4,455 | 4,455 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Palisades Medical Center | | | | |
| Obligated Group) | 5.000% | 7/1/26 | 2,070 | 2,280 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Palisades Medical Center | | | | |
| Obligated Group) | 5.250% | 7/1/31 | 2,000 | 2,198 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Palisades Medical Center | | | | |
| Obligated Group) | 5.500% | 7/1/43 | 6,530 | 7,233 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Robert Wood Johnson | | | | |
| University) | 5.000% | 7/1/31 | 5,500 | 6,065 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Robert Wood Johnson | | | | |
| University) | 5.000% | 7/1/32 | 1,000 | 1,127 |
40
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Robert Wood Johnson | | | | |
| University) | 5.000% | 7/1/33 | 2,150 | 2,416 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Robert Wood Johnson | | | | |
| University) | 5.000% | 7/1/34 | 1,200 | 1,345 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Robert Wood Johnson | | | | |
| University) | 5.250% | 7/1/35 | 7,000 | 7,944 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Robert Wood Johnson | | | | |
| University) | 5.000% | 7/1/39 | 3,500 | 3,873 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Robert Wood Johnson | | | | |
| University) | 5.000% | 7/1/43 | 4,000 | 4,415 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Robert Wood Johnson | | | | |
| University) | 5.500% | 7/1/43 | 8,000 | 9,207 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (St. Barnabas Health Care | | | | |
| System) | 0.000% | 7/1/21 (ETM) | 1,260 | 1,150 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (St. Barnabas Health Care | | | | |
| System) | 5.000% | 7/1/24 | 2,000 | 2,264 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (St. Barnabas Health Care | | | | |
| System) | 5.000% | 7/1/29 | 1,000 | 1,026 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (St. Barnabas Health Care | | | | |
| System) | 5.625% | 7/1/32 | 2,330 | 2,692 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (St. Barnabas Health Care | | | | |
| System) | 5.625% | 7/1/37 | 5,260 | 6,012 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (St. Joseph’s Healthcare | | | | |
| System) | 6.625% | 7/1/38 | 4,440 | 4,908 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (St. Luke’s Warren Hospital | | | | |
| Obligated Group) | 4.500% | 8/15/43 | 5,800 | 5,983 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Trinitas Hospital Obligated | | | | |
| Group) | 5.250% | 7/1/30 | 250 | 261 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Trinitas Hospital Obligated | | | | |
| Group) | 5.250% | 7/1/30 (9) | 2,170 | 2,267 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Virtua Health) | 5.000% | 7/1/26 | 7,600 | 8,874 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Virtua Health) | 5.000% | 7/1/27 | 4,000 | 4,639 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Virtua Health) | 5.000% | 7/1/28 | 3,000 | 3,445 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Virtua Health) | 5.000% | 7/1/29 | 2,410 | 2,752 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Virtua Health) | 5.750% | 7/1/33 | 3,010 | 3,393 |
41
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Virtua Health) | 5.500% | 7/1/38 (12) | 3,210 | 3,598 |
| New Jersey Health Care Facilities Financing | | | | |
| Authority Revenue (Virtua Health) VRDO | 0.010% | 12/7/15 LOC | 4,500 | 4,500 |
| New Jersey Higher Education Assistance | | | | |
| Authority Student Loan Revenue | 5.000% | 6/1/19 | 1,075 | 1,186 |
| New Jersey Higher Education Assistance | | | | |
| Authority Student Loan Revenue | 4.750% | 12/1/21 | 3,665 | 3,901 |
| New Jersey Higher Education Assistance | | | | |
| Authority Student Loan Revenue | 5.000% | 12/1/25 | 1,095 | 1,153 |
| New Jersey Higher Education Assistance | | | | |
| Authority Student Loan Revenue | 5.000% | 12/1/26 | 1,100 | 1,155 |
| New Jersey Higher Education Assistance | | | | |
| Authority Student Loan Revenue | 5.625% | 6/1/30 | 7,175 | 7,901 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Single Family Housing Revenue | 4.250% | 10/1/32 | 3,160 | 3,305 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Single Family Housing Revenue | 6.500% | 10/1/38 | 420 | 435 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Single Family Housing Revenue VRDO | 0.010% | 12/7/15 | 1,000 | 1,000 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Single Family Housing Revenue VRDO | 0.010% | 12/7/15 | 6,800 | 6,800 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Single Family Housing Revenue VRDO | 0.020% | 12/7/15 | 5,830 | 5,830 |
| New Jersey Housing & Mortgage Finance | | | | |
| Agency Single Family Housing Revenue VRDO | 0.030% | 12/7/15 | 8,875 | 8,875 |
| New Jersey Institute of Technology Revenue | 5.000% | 7/1/32 | 1,500 | 1,681 |
| New Jersey Institute of Technology Revenue | 5.000% | 7/1/40 | 6,910 | 7,742 |
| New Jersey Institute of Technology Revenue | 5.000% | 7/1/42 | 5,000 | 5,518 |
| New Jersey Institute of Technology Revenue | 5.000% | 7/1/45 | 9,090 | 10,021 |
| New Jersey Sports & Exposition Authority | | | | |
| Revenue | 5.500% | 3/1/17 (ETM) | 250 | 265 |
| New Jersey Sports & Exposition Authority | | | | |
| Revenue | 5.500% | 3/1/17 (ETM) | 385 | 408 |
| New Jersey Sports & Exposition Authority | | | | |
| Revenue | 5.500% | 3/1/17 (14) | 5,120 | 5,379 |
| New Jersey Sports & Exposition Authority | | | | |
| Revenue (Convention Center Luxury Tax) | 5.500% | 3/1/21 (ETM) | 3,000 | 3,626 |
| New Jersey Transportation Corp. GAN | 5.000% | 9/15/19 | 5,000 | 5,510 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.000% | 6/15/24 | 2,500 | 2,672 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.000% | 6/15/25 | 4,500 | 4,791 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.000% | 6/15/27 | 11,245 | 11,966 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.250% | 6/15/31 | 1,500 | 1,598 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.000% | 6/15/32 | 10,000 | 10,343 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.000% | 6/15/33 | 9,500 | 9,799 |
| 3 New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 4.750% | 6/15/38 | 2,850 | 2,854 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.000% | 6/15/38 | 10,550 | 10,770 |
42
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.000% | 6/15/38 | 6,105 | 6,217 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.500% | 6/15/39 | 5,400 | 5,803 |
| 3 New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.250% | 6/15/41 | 7,700 | 8,083 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue | 5.000% | 6/15/44 | 3,585 | 3,653 |
| 4 New Jersey Transportation Trust Fund Authority | | | | |
| Transportation Program Revenue PUT | 1.210% | 12/15/21 | 7,000 | 6,784 |
| 2 New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 6.000% | 12/15/18 (Prere.) | 1,740 | 2,001 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.750% | 6/15/20 | 5,000 | 5,470 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.250% | 12/15/20 | 5,205 | 5,708 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.250% | 12/15/22 | 2,500 | 2,761 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.500% | 12/15/22 | 4,730 | 5,296 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/23 | 3,900 | 2,733 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.750% | 6/15/24 (14) | 4,900 | 5,753 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.750% | 6/15/25 (14) | 7,000 | 8,255 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/26 | 4,915 | 2,890 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/26 (2) | 2,000 | 1,185 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.000% | 6/15/27 | 5,000 | 5,260 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.125% | 6/15/28 | 5,245 | 5,508 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/28 | 3,855 | 2,030 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.000% | 6/15/29 | 2,785 | 2,926 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/29 | 7,360 | 3,654 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/29 (4) | 6,970 | 3,551 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.250% | 6/15/30 | 3,065 | 3,241 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/30 | 6,000 | 2,792 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.250% | 6/15/31 | 5,395 | 5,689 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.500% | 6/15/31 | 6,000 | 6,419 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/31 | 11,500 | 5,008 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.000% | 6/15/32 | 6,500 | 6,764 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.250% | 6/15/32 | 5,000 | 5,306 |
43
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/32 (4) | 8,000 | 3,477 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/32 | 7,000 | 2,880 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/33 | 5,000 | 1,932 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/33 | 3,000 | 1,159 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/34 | 8,210 | 2,976 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 6.000% | 6/15/35 | 385 | 430 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/35 | 13,235 | 4,512 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.250% | 6/15/36 | 3,000 | 3,133 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/36 | 11,675 | 3,728 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/37 | 1,165 | 349 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 0.000% | 12/15/38 | 15,000 | 4,230 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.500% | 12/15/38 (12) | 6,900 | 7,514 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 6.000% | 12/15/38 | 3,360 | 3,686 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.500% | 6/15/41 | 8,000 | 8,521 |
| New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue | 5.000% | 6/15/42 | 16,535 | 16,798 |
| 1 New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue TOB VRDO | 0.120% | 12/7/15 (4) | 4,930 | 4,930 |
| 1 New Jersey Transportation Trust Fund Authority | | | | |
| Transportation System Revenue TOB VRDO | 0.130% | 12/7/15 LOC | 3,820 | 3,820 |
| New Jersey Turnpike Authority Revenue | 6.500% | 1/1/16 (ETM) | 1,065 | 1,071 |
| New Jersey Turnpike Authority Revenue | 6.500% | 1/1/16 (ETM) | 6,720 | 6,757 |
| New Jersey Turnpike Authority Revenue | 6.500% | 1/1/16 (14) | 8,335 | 8,380 |
| New Jersey Turnpike Authority Revenue | 6.500% | 1/1/16 (ETM) | 1,560 | 1,569 |
| New Jersey Turnpike Authority Revenue | 5.250% | 1/1/26 (4) | 4,000 | 4,927 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/31 | 5,000 | 5,635 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/32 | 3,000 | 3,443 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/33 | 8,500 | 9,536 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/33 | 3,000 | 3,435 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/34 | 3,000 | 3,428 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/35 | 5,000 | 5,544 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/35 | 6,400 | 7,099 |
| New Jersey Turnpike Authority Revenue | 5.150% | 1/1/35 (2) | 8,500 | 8,839 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/36 | 3,500 | 3,830 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/38 | 17,355 | 19,251 |
| New Jersey Turnpike Authority Revenue | 5.250% | 1/1/40 | 10,000 | 10,958 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/43 | 8,595 | 9,496 |
| New Jersey Turnpike Authority Revenue | 4.000% | 1/1/45 | 3,000 | 3,063 |
| New Jersey Turnpike Authority Revenue | 5.000% | 1/1/45 | 5,000 | 5,579 |
| Newark NJ Housing Authority Port Authority- | | | | |
| Port Newark Marine Terminal Revenue | | | | |
| (City of Newark Redevelopment Projects) | 4.375% | 1/1/37 (14) | 100 | 101 |
44
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| Ocean County NJ Utility Authority Wastewater | | | | |
| Revenue | 6.600% | 1/1/18 (ETM) | 1,255 | 1,334 |
| Passaic Valley NJ Sewage Commissioners Sewer | | | | |
| System Revenue | 5.750% | 12/1/19 | 1,680 | 1,924 |
| Passaic Valley NJ Water Commission Revenue | 5.000% | 12/15/32 (4) | 1,385 | 1,578 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.375% | 3/1/28 | 1,280 | 1,572 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 4.500% | 7/15/28 | 4,000 | 4,296 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 10/15/28 | 4,000 | 4,875 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 3/1/29 | 4,500 | 4,995 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 10/15/30 | 3,000 | 3,586 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 7/15/31 | 3,395 | 3,892 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 7/15/31 | 5,140 | 5,914 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 7/15/32 | 3,500 | 4,008 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 10/15/32 | 6,625 | 7,535 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 4.750% | 7/15/33 | 3,500 | 3,795 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 9/1/33 | 5,500 | 6,424 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 10/15/33 | 1,250 | 1,420 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 5/1/34 | 3,000 | 3,412 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 12/1/34 | 7,000 | 8,185 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 5/1/35 | 3,000 | 3,402 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 7/15/35 | 6,500 | 7,397 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 9/15/36 | 3,400 | 3,828 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 7/15/39 | 13,250 | 14,990 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 9/1/39 | 4,090 | 4,712 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 1/15/41 | 16,065 | 18,074 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.000% | 10/15/41 | 3,000 | 3,465 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 4.000% | 10/15/45 | 2,500 | 2,599 |
| Port Authority of New York & New Jersey | | | | |
| Revenue | 5.250% | 10/15/55 | 5,250 | 6,054 |
| Port Authority of New York & New Jersey | | | | |
| Special Obligation Revenue (John F. Kennedy | | | | |
| International Air Terminal LLC) | 5.500% | 12/1/31 | 5,000 | 5,737 |
45
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| Port Authority of New York & New Jersey | | | | |
| Special Obligation Revenue (John F. Kennedy | | | | |
| International Air Terminal LLC) | 6.000% | 12/1/36 | 3,000 | 3,500 |
| Port Authority of New York & New Jersey | | | | |
| Special Obligation Revenue (John F. Kennedy | | | | |
| International Air Terminal LLC) | 6.000% | 12/1/42 | 5,000 | 5,834 |
| Rutgers State University New Jersey Revenue | 5.000% | 5/1/28 | 4,000 | 4,706 |
| Rutgers State University New Jersey Revenue | 5.000% | 5/1/30 | 5,000 | 5,790 |
| Rutgers State University New Jersey Revenue | 5.000% | 5/1/33 | 7,000 | 8,005 |
| Rutgers State University New Jersey Revenue | 5.000% | 5/1/36 | 3,000 | 3,399 |
| Rutgers State University New Jersey Revenue | 5.000% | 5/1/38 | 5,460 | 6,158 |
| Rutgers State University New Jersey Revenue | 5.000% | 5/1/43 | 13,650 | 15,309 |
| 1 Rutgers State University New Jersey Revenue | | | | |
| TOB VRDO | 0.020% | 12/7/15 | 3,750 | 3,750 |
| Rutgers State University New Jersey Revenue | | | | |
| VRDO | 0.010% | 12/1/15 | 3,100 | 3,100 |
| Rutgers State University New Jersey Revenue | | | | |
| VRDO | 0.010% | 12/1/15 | 30,315 | 30,315 |
| South Jersey Transportation Authority New | | | | |
| Jersey Transportation System Revenue | 5.000% | 11/1/20 | 2,145 | 2,367 |
| South Jersey Transportation Authority New | | | | |
| Jersey Transportation System Revenue | 5.000% | 11/1/21 | 3,000 | 3,335 |
| South Jersey Transportation Authority New | | | | |
| Jersey Transportation System Revenue | 5.000% | 11/1/22 | 2,780 | 3,111 |
| South Jersey Transportation Authority New | | | | |
| Jersey Transportation System Revenue | 5.000% | 11/1/25 | 4,000 | 4,403 |
| South Jersey Transportation Authority New | | | | |
| Jersey Transportation System Revenue | 5.000% | 11/1/26 | 5,000 | 5,471 |
| South Jersey Transportation Authority New | | | | |
| Jersey Transportation System Revenue | 5.000% | 11/1/27 | 2,960 | 3,209 |
| South Jersey Transportation Authority New | | | | |
| Jersey Transportation System Revenue | 5.000% | 11/1/28 | 4,185 | 4,489 |
| South Jersey Transportation Authority New | | | | |
| Jersey Transportation System Revenue | 5.000% | 11/1/29 | 2,000 | 2,138 |
| South Jersey Transportation Authority New | | | | |
| Jersey Transportation System Revenue | 5.000% | 11/1/39 | 5,000 | 5,306 |
| Sparta Township NJ Board of Education GO | 5.000% | 2/15/34 | 1,000 | 1,155 |
| Sparta Township NJ Board of Education GO | 5.000% | 2/15/35 | 1,400 | 1,612 |
| Tobacco Settlement Financing Corp. New | | | | |
| Jersey Revenue | 4.500% | 6/1/23 | 15,895 | 16,127 |
| Tobacco Settlement Financing Corp. New | | | | |
| Jersey Revenue | 0.000% | 6/1/41 | 25,000 | 6,333 |
| Tobacco Settlement Financing Corp. New | | | | |
| Jersey Revenue | 5.000% | 6/1/41 | 7,500 | 6,052 |
| Union County NJ Improvement Authority | | | | |
| Lease Revenue (Family Court Building Project) | 5.000% | 5/1/42 | 5,000 | 5,571 |
| Union County NJ Utilities Authority Revenue | 5.000% | 6/15/41 | 4,000 | 4,444 |
| | | | | 1,935,612 |
| Virgin Islands (0.8%) | | | | |
| Virgin Islands Public Finance Authority Revenue | 5.000% | 10/1/24 | 3,000 | 3,399 |
| Virgin Islands Public Finance Authority Revenue | 5.000% | 10/1/25 | 5,500 | 5,956 |
| Virgin Islands Public Finance Authority Revenue | 5.000% | 10/1/39 | 6,000 | 6,342 |
| | | | | 15,697 |
46
New Jersey Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value• |
| | Coupon | Date | ($000) | ($000) |
| Guam (0.4%) | | | | |
| Guam Government Business Privilege Tax | | | | |
| Revenue | 5.000% | 11/15/39 | 2,200 | 2,425 |
| Guam Government Waterworks Authority Water | | | | |
| & Waste Water System Revenue | 5.500% | 7/1/43 | 3,000 | 3,382 |
| Guam Power Authority Revenue | 5.000% | 10/1/27 | 1,135 | 1,288 |
| Guam Power Authority Revenue | 5.000% | 10/1/29 | 1,355 | 1,518 |
| | | | | 8,613 |
| Puerto Rico (0.1%) | | | | |
| Puerto Rico Public Finance Corp. Revenue | 6.000% | 8/1/26 (ETM) | 720 | 960 |
| Total Tax-Exempt Municipal Bonds (Cost $1,887,477) | | | 1,960,882 |
| |
| | Amount |
| | ($000) |
| Other Assets and Liabilities (0.9%) | |
| Other Assets | |
| Investment in Vanguard | 172 |
| Receivables for Investment Securities Sold | 4,175 |
| Receivables for Accrued Income | 29,468 |
| Receivables for Capital Shares Issued | 1,788 |
| Other Assets | 318 |
| Total Other Assets | 35,921 |
| Liabilities | |
| Payables for Investment Securities Purchased | (13,684) |
| Payables for Capital Shares Redeemed | (258) |
| Payables for Distributions | (1,531) |
| Payables to Vanguard | (2,268) |
| Other Liabilities | (8) |
| Total Liabilities | (17,749) |
| Net Assets (100%) | 1,979,054 |
47
New Jersey Long-Term Tax-Exempt Fund
| |
| At November 30, 2015, net assets consisted of: | |
| | Amount |
| | ($000) |
| Paid-in Capital | 1,902,829 |
| Undistributed Net Investment Income | — |
| Accumulated Net Realized Gains | 2,818 |
| Unrealized Appreciation (Depreciation) | |
| Investment Securities | 73,405 |
| Futures Contracts | 2 |
| Net Assets | 1,979,054 |
| |
| |
| Investor Shares—Net Assets | |
| Applicable to 20,113,817 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 241,417 |
| Net Asset Value Per Share—Investor Shares | $12.00 |
| |
| |
| Admiral Shares—Net Assets | |
| Applicable to 144,771,972 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 1,737,637 |
| Net Asset Value Per Share—Admiral Shares | $12.00 |
• See Note A in Notes to Financial Statements.
1 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. At November 30, 2015, the aggregate value of these securities was $19,760,000,
representing 1.0% of net assets.
2 Securities with a value of $448,000 have been segregated as initial margin for open futures contracts.
3 Security purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of November 30, 2015.
4 Adjustable-rate security.
A key to abbreviations and other references follows the Statement of Net Assets.
See accompanying Notes, which are an integral part of the Financial Statements.
48
New Jersey Long-Term Tax-Exempt Fund
Key to Abbreviations
ARS—Auction Rate Security.
BAN—Bond Anticipation Note.
COP—Certificate of Participation.
CP—Commercial Paper.
FR—Floating Rate.
GAN—Grant Anticipation Note.
GO—General Obligation Bond.
PILOT—Payments in Lieu of Taxes.
PUT—Put Option Obligation.
RAN—Revenue Anticipation Note.
TAN—Tax Anticipation Note.
TOB—Tender Option Bond.
TRAN—Tax Revenue Anticipation Note.
VRDO—Variable Rate Demand Obligation.
VRDP—Variable Rate Demand Preferred.
(ETM)—Escrowed to Maturity.
(Prere.)—Prerefunded.
Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Investors Assurance).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) AGM (Assured Guaranty Municipal Corporation).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty).
(12) AGC (Assured Guaranty Corporation).
(13) BHAC (Berkshire Hathaway Assurance Corporation).
(14) NPFG (National Public Finance Guarantee Corporation).
(15) BAM (Build America Mutual Assurance Company).
(16) MAC (Municipal Assurance Corporation).
(17) RAA (Radian Asset Assurance Inc).
The insurance does not guarantee the market value of the municipal bonds.
LOC—Scheduled principal and interest payments are guaranteed by bank letter of credit.
49
New Jersey Long-Term Tax-Exempt Fund
Statement of Operations
| |
| | Year Ended |
| | November 30, 2015 |
| | ($000) |
| Investment Income | |
| Income | |
| Interest | 74,815 |
| Total Income | 74,815 |
| Expenses | |
| The Vanguard Group—Note B | |
| Investment Advisory Services | 207 |
| Management and Administrative—Investor Shares | 403 |
| Management and Administrative—Admiral Shares | 1,702 |
| Marketing and Distribution—Investor Shares | 51 |
| Marketing and Distribution—Admiral Shares | 168 |
| Custodian Fees | 23 |
| Auditing Fees | 34 |
| Shareholders’ Reports—Investor Shares | 6 |
| Shareholders’ Reports—Admiral Shares | 5 |
| Trustees’ Fees and Expenses | 1 |
| Total Expenses | 2,600 |
| Net Investment Income | 72,215 |
| Realized Net Gain (Loss) | |
| Investment Securities Sold | 4,885 |
| Futures Contracts | (214) |
| Realized Net Gain (Loss) | 4,671 |
| Change in Unrealized Appreciation (Depreciation) | |
| Investment Securities | (32,772) |
| Futures Contracts | 2 |
| Change in Unrealized Appreciation (Depreciation) | (32,770) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 44,116 |
See accompanying Notes, which are an integral part of the Financial Statements.
50
New Jersey Long-Term Tax-Exempt Fund
Statement of Changes in Net Assets
| | |
| | Year Ended November 30, |
| | 2015 | 2014 |
| | ($000) | ($000) |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net Investment Income | 72,215 | 71,133 |
| Realized Net Gain (Loss) | 4,671 | 8,890 |
| Change in Unrealized Appreciation (Depreciation) | (32,770) | 84,256 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 44,116 | 164,279 |
| Distributions | | |
| Net Investment Income | | |
| Investor Shares | (8,722) | (8,837) |
| Admiral Shares | (63,493) | (62,296) |
| Realized Capital Gain1 | | |
| Investor Shares | (1,060) | (452) |
| Admiral Shares | (7,567) | (3,042) |
| Total Distributions | (80,842) | (74,627) |
| Capital Share Transactions | | |
| Investor Shares | (393) | (11,024) |
| Admiral Shares | 14,532 | 28,734 |
| Net Increase (Decrease) from Capital Share Transactions | 14,139 | 17,710 |
| Total Increase (Decrease) | (22,587) | 107,362 |
| Net Assets | | |
| Beginning of Period | 2,001,641 | 1,894,279 |
| End of Period2 | 1,979,054 | 2,001,641 |
1 Includes fiscal 2015 and 2014 short-term gain distributions totaling $2,329,000 and $204,000, respectively. Short-term gain distributions are
treated as ordinary income dividends for tax purposes.
2 Net Assets—End of Period includes undistributed (overdistributed) net investment income of $0 and $0.
See accompanying Notes, which are an integral part of the Financial Statements.
51
New Jersey Long-Term Tax-Exempt Fund
Financial Highlights
| | | | | |
| Investor Shares | | | | | |
| |
| For a Share Outstanding | Year Ended November 30, |
| Throughout Each Period | 2015 | 2014 | 2013 | 2012 | 2011 |
| Net Asset Value, Beginning of Period | $12.22 | $11.66 | $12.57 | $11.73 | $11.58 |
| Investment Operations | | | | | |
| Net Investment Income | . 427 | .431 | .433 | .439 | .471 |
| Net Realized and Unrealized Gain (Loss) | | | | | |
| on Investments | (.167) | .582 | (.910) | .840 | .150 |
| Total from Investment Operations | .260 | 1.013 | (.477) | 1.279 | .621 |
| Distributions | | | | | |
| Dividends from Net Investment Income | (.427) | (.431) | (.433) | (.439) | (.471) |
| Distributions from Realized Capital Gains | (.053) | (.022) | — | — | — |
| Total Distributions | (.480) | (.453) | (.433) | (.439) | (.471) |
| Net Asset Value, End of Period | $12.00 | $12.22 | $11.66 | $12.57 | $11.73 |
| |
| Total Return1 | 2.17% | 8.82% | -3.83% | 11.07% | 5.54% |
| |
| Ratios/Supplemental Data | | | | | |
| Net Assets, End of Period (Millions) | $241 | $246 | $246 | $303 | $294 |
| Ratio of Total Expenses to Average Net Assets | 0.20% | 0.20% | 0.20% | 0.20% | 0.20% |
| Ratio of Net Investment Income to | | | | | |
| Average Net Assets | 3.54% | 3.58% | 3.60% | 3.62% | 4.11% |
| Portfolio Turnover Rate | 25% | 20% | 35% | 17% | 12% |
1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about
any applicable account service fees.
See accompanying Notes, which are an integral part of the Financial Statements.
52
New Jersey Long-Term Tax-Exempt Fund
Financial Highlights
| | | | | |
| Admiral Shares | | | | | |
| |
| For a Share Outstanding | Year Ended November 30, |
| Throughout Each Period | 2015 | 2014 | 2013 | 2012 | 2011 |
| Net Asset Value, Beginning of Period | $12.22 | $11.66 | $12.57 | $11.73 | $11.58 |
| Investment Operations | | | | | |
| Net Investment Income | . 436 | .441 | .442 | .449 | .480 |
| Net Realized and Unrealized Gain (Loss) | | | | | |
| on Investments | (.167) | .582 | (.910) | .840 | .150 |
| Total from Investment Operations | .269 | 1.023 | (.468) | 1.289 | .630 |
| Distributions | | | | | |
| Dividends from Net Investment Income | (.436) | (.441) | (.442) | (. 449) | (.480) |
| Distributions from Realized Capital Gains | (.053) | (.022) | — | — | — |
| Total Distributions | (.489) | (.463) | (.442) | (. 449) | (.480) |
| Net Asset Value, End of Period | $12.00 | $12.22 | $11.66 | $12.57 | $11.73 |
| |
| Total Return1 | 2.25% | 8.91% | -3.75% | 11.15% | 5.62% |
| |
| Ratios/Supplemental Data | | | | | |
| Net Assets, End of Period (Millions) | $1,738 | $1,755 | $1,648 | $1,874 | $1,649 |
| Ratio of Total Expenses to Average Net Assets | 0.12% | 0.12% | 0.12% | 0.12% | 0.12% |
| Ratio of Net Investment Income to | | | | | |
| Average Net Assets | 3.62% | 3.66% | 3.68% | 3.70% | 4.19% |
| Portfolio Turnover Rate | 25% | 20% | 35% | 17% | 12% |
1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about
any applicable account service fees.
See accompanying Notes, which are an integral part of the Financial Statements.
53
New Jersey Long-Term Tax-Exempt Fund
Notes to Financial Statements
Vanguard New Jersey Long-Term Tax-Exempt Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in debt instruments of municipal issuers whose ability to meet their obligations may be affected by economic and political developments in the state. The fund offers two classes of shares: Investor Shares and Admiral Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares are designed for investors who meet certain administrative, service, and account-size criteria.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Bonds, and temporary cash investments acquired over 60 days to maturity, are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value.
2. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates.
The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract.
Futures contracts are valued at their quoted daily settlement prices. The aggregate settlement values of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).
During the year ended November 30, 2015, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of aggregate settlement values at each quarter-end during the period.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (November 30, 2012–2015), and has concluded that no provision for federal income tax is required in the fund’s financial statements.
54
New Jersey Long-Term Tax-Exempt Fund
4. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date.
5. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.06% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate equal to the higher of the federal funds rate or LIBOR reference rate plus an agreed-upon spread.
The fund had no borrowings outstanding at November 30, 2015, or at any time during the period then ended.
6. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At November 30, 2015, the fund had contributed to Vanguard capital in the amount of $172,000, representing 0.01% of the fund’s net assets and 0.07% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
55
New Jersey Long-Term Tax-Exempt Fund
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
The following table summarizes the market value of the fund’s investments as of November 30, 2015, based on the inputs used to value them:
| | | |
| | Level 1 | Level 2 | Level 3 |
| Investments | ($000) | ($000) | ($000) |
| Tax-Exempt Municipal Bonds | — | 1,960,882 | — |
| Futures Contracts—Assets1 | 5 | — | — |
| Futures Contracts—Liabilities1 | (6) | — | — |
| Total | (1) | 1,960,882 | — |
| 1 Represents variation margin on the last day of the reporting period. |
D. At November 30, 2015, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:
| | | | |
| | | | | ($000) |
| | | | Aggregate | |
| | | Number of | Settlement | Unrealized |
| | | Long (Short) | Value | Appreciation |
| Futures Contracts | Expiration | Contracts | Long (Short) | (Depreciation) |
| 5-Year U.S. Treasury Note | March 2016 | 72 | 8,545 | 2 |
Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.
E. Capital gain distributions are determined on a tax basis and may differ from realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when gains or losses are recognized in different periods for financial statement and tax purposes. These differences will reverse at some time in the future.
The fund used a tax accounting practice to treat a portion of the price of capital shares redeemed during the year as distributions from realized capital gains. Accordingly, the fund has reclassified $732,000 from accumulated net realized gains to paid-in capital.
For tax purposes, at November 30, 2015, the fund had $3,431,000 of long-term capital gains available for distribution.
56
New Jersey Long-Term Tax-Exempt Fund
At November 30, 2015, the cost of investment securities for tax purposes was $1,888,089,000. Net unrealized appreciation of investment securities for tax purposes was $72,793,000, consisting of unrealized gains of $85,269,000 on securities that had risen in value since their purchase and $12,476,000 in unrealized losses on securities that had fallen in value since their purchase.
F. During the year ended November 30, 2015, the fund purchased $469,065,000 of investment securities and sold $484,635,000 of investment securities, other than temporary cash investments.
G. Capital share transactions for each class of shares were:
| | | | |
| | Year Ended November 30, |
| | 2015 | 2014 |
| | Amount | Shares | Amount | Shares |
| | ($000) | (000) | ($000) | (000) |
| Investor Shares | | | | |
| Issued | 43,213 | 3,577 | 45,238 | 3,773 |
| Issued in Lieu of Cash Distributions | 8,020 | 665 | 7,598 | 632 |
| Redeemed | (51,626) | (4,301) | (63,860) | (5,325) |
| Net Increase (Decrease)—Investor Shares | (393) | (59) | (11,024) | (920) |
| Admiral Shares | | | | |
| Issued | 177,646 | 14,716 | 175,302 | 14,601 |
| Issued in Lieu of Cash Distributions | 52,339 | 4,340 | 48,121 | 4,004 |
| Redeemed | (215,453) | (17,954) | (194,689) | (16,295) |
| Net Increase (Decrease) —Admiral Shares | 14,532 | 1,102 | 28,734 | 2,310 |
H. Management has determined that no material events or transactions occurred subsequent to November 30, 2015, that would require recognition or disclosure in these financial statements.
57
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Vanguard New Jersey Tax-Free Funds and the Shareholders of Vanguard New Jersey Tax-Exempt Money Market Fund and Vanguard New Jersey Long-Term Tax-Exempt Fund:
In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard New Jersey Tax-Exempt Money Market Fund and Vanguard New Jersey Long-Term Tax-Exempt Fund (constituting Vanguard New Jersey Tax-Free Funds, hereafter referred to as the “Funds”) at November 30, 2015, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at November 30, 2015 by correspondence with the custodian and brokers and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
January 13, 2016
Special 2015 tax information (unaudited) for Vanguard New Jersey Tax-Exempt Funds
This information for the fiscal year ended November 30, 2015, is included pursuant to provisions of
the Internal Revenue Code.
The Long-Term Tax-Exempt Fund distributed $7,030,000 as capital gain dividends (20% rate gain
distributions) to shareholders during the fiscal year.
For nonresident alien shareholders, 100% of short-term capital gain dividends distributed by the fund
are qualified short-term capital gains.
Each fund designates 100% of its income dividends as exempt-interest dividends.
58
About Your Fund’s Expenses
As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The accompanying table illustrates your fund’s costs in two ways:
• Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During Period.“
• Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.
Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”
The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.
59
| | | |
| Six Months Ended November 30, 2015 | | | |
| | Beginning | Ending | Expenses |
| | Account Value | Account Value | Paid During |
| | 5/31/2015 | 11/30/2015 | Period |
| Based on Actual Fund Return | | | |
| New Jersey Tax-Exempt Money Market Fund | $1,000.00 | $1,000.05 | $0.40 |
| New Jersey Long-Term Tax-Exempt Fund | | | |
| Investor Shares | $1,000.00 | $1,026.57 | $1.07 |
| Admiral Shares | 1,000.00 | 1,026.97 | 0.66 |
| Based on Hypothetical 5% Yearly Return | | | |
| New Jersey Tax-Exempt Money Market Fund | $1,000.00 | $1,024.67 | $0.41 |
| New Jersey Long-Term Tax-Exempt Fund | | | |
| Investor Shares | $1,000.00 | $1,024.02 | $1.07 |
| Admiral Shares | 1,000.00 | 1,024.42 | 0.66 |
The calculations are based on expenses incurred in the most recent six-month period. The funds’ annualized six-month expense ratios for that
period are: for the New Jersey Tax-Exempt Money Market Fund, 0.08%; and for the New Jersey Long-Term Tax-Exempt Fund, 0.21% for
Investor Shares and 0.13% for Admiral Shares. (The six-month expense ratio for the New Jersey Tax-Exempt Money Market Fund reflects a
temporary reduction in operating expenses, described in Note B of the Notes to Financial Statements. Before the reduction, the fund’s
annualized six-month expense ratio was 0.16%.) The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio
multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided
by the number of days in the most recent 12-month period (183/365).
60
Glossary
7-Day SEC Yield and 30-Day SEC Yield. A money market fund’s 7-day SEC yield is calculated by annualizing its income distributions for the previous seven days, as required by the U.S. Securities and Exchange Commission. For other funds, 30-day SEC yield is derived using a formula specified by the commission. Under the formula, data related to the fund’s security holdings in the previous 30 days are used to calculate the fund’s hypothetical net income for that period, which is then annualized and divided by the fund’s estimated average net assets over the calculation period. For the purposes of this calculation, a security’s income is based on its current market yield to maturity (for bonds), its actual income (for asset-backed securities), or its projected dividend yield (for stocks). Because the SEC yield represents hypothetical annualized income, it will differ—at times significantly—from the fund’s actual experience. As a result, the fund’s income distributions may be higher or lower than implied by the SEC yield.
Average Coupon. The average interest rate paid on the fixed income securities held by a fund. It is expressed as a percentage of face value.
Average Duration. An estimate of how much the value of the bonds held by a fund will fluctuate in response to a change in interest rates. To see how the value could change, multiply the average duration by the change in rates. If interest rates rise by 1 percentage point, the value of the bonds in a fund with an average duration of five years would decline by about 5%. If rates decrease by a percentage point, the value would rise by 5%.
Average Stated Maturity. The average length of time until fixed income securities held by a fund reach maturity and are repaid using the maturity date of the security. The figure reflects the proportion of fund assets represented by each security; it also reflects any futures contracts held. In general, the longer the average stated maturity, the more a fund’s share price will fluctuate in response to changes in market interest rates.
Average Weighted Maturity. The average length of time until fixed income securities held by a fund reach maturity and are repaid. The figure reflects the proportion of fund assets represented by each security.
Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups and downs of a given market index. The index is assigned a beta of 1.00. Compared with a given index, a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12% when the index rose or fell by 10%. For this report, beta is based on returns over the past 36 months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction with its R-squared (see definition). The lower the R-squared, the less correlation there is between the fund and the index, and the less reliable beta is as an indicator of volatility.
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Credit Quality. For Vanguard money market funds, the Distribution by Credit Quality table includes tier ratings for consistency with SEC Rule 2a-7 under the Investment Company Act of 1940, which governs money market funds. A First Tier security is one that is eligible for money market funds and has been rated in the highest short-term rating category for debt obligations by the requisite nationally recognized statistical rating organizations. Credit-quality ratings are obtained from Moody’s, Fitch, and S&P. For securities rated by all three agencies, where two of them are in agreement and assign the highest rating category, the highest rating applies. If a security is only rated by two agencies, and their ratings are in different categories, the lower of the ratings applies. An unrated security is First Tier if it represents quality comparable to that of a rated security, as determined in accordance with SEC Rule 2a-7. A Second Tier security is one that is eligible for money market funds and is not a First Tier security. For Vanguard tax-exempt bond funds, credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Credit-quality ratings are obtained from Moody’s and S&P, and the higher rating for each issue is used. ”Not Rated” is used to classify securities for which a rating is not available. Not rated securities include a fund’s investment in Vanguard Market Liquidity Fund or Vanguard Municipal Cash Management Fund, each of which invests in high-quality money market instruments and may serve as a cash management vehicle for the Vanguard funds, trusts, and accounts.
Expense Ratio. A fund’s total annual operating expenses expressed as a percentage of the fund’s average net assets. The expense ratio includes management and administrative expenses, but does not include the transaction costs of buying and selling portfolio securities.
Inception Date. The date on which the assets of a fund (or one of its share classes) are first invested in accordance with the fund’s investment objective. For funds with a subscription period, the inception date is the day after that period ends. Investment performance is measured from the inception date.
R-Squared. A measure of how much of a fund’s past returns can be explained by the returns from the market in general, as measured by a given index. If a fund’s total returns were precisely synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based on returns over the past 36 months for both the fund and the index.
Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities that can be readily converted to cash.
Yield to Maturity. The rate of return an investor would receive if the fixed income securities held by a fund were held to their maturity dates.
Benchmark Information
Spliced New Jersey Tax-Exempt Money Market Funds Average: New Jersey Tax-Exempt Money
Market Funds Average through August 31, 2013; Other States Tax-Exempt Money Market Funds
Average thereafter.
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The People Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.
A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 194 Vanguard funds.
The following table provides information for each trustee and executive officer of the fund. More information about the trustees is in the Statement of Additional Information, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.
| |
| InterestedTrustee1 | Rajiv L. Gupta |
| | Born 1945. Trustee Since December 2001.2 Principal |
| F. William McNabb III | Occupation(s) During the Past Five Years and Other |
| Born 1957. Trustee Since July 2009. Chairman of | Experience: Chairman and Chief Executive Officer |
| the Board. Principal Occupation(s) During the Past | (retired 2009) and President (2006–2008) of |
| Five Years and Other Experience: Chairman of the | Rohm and Haas Co. (chemicals); Director of Tyco |
| Board of The Vanguard Group, Inc., and of each of | International PLC (diversified manufacturing and |
| the investment companies served by The Vanguard | services), Hewlett-Packard Co. (electronic computer |
| Group, since January 2010; Director of The Vanguard | manufacturing), and Delphi Automotive PLC |
| Group since 2008; Chief Executive Officer and | (automotive components); Senior Advisor at New |
| President of The Vanguard Group, and of each of | Mountain Capital. |
| the investment companies served by The Vanguard | |
| Group, since 2008; Director of Vanguard Marketing | Amy Gutmann |
| Corporation; Managing Director of The Vanguard | Born 1949. Trustee Since June 2006. Principal |
| Group (1995–2008). | Occupation(s) During the Past Five Years and |
| | Other Experience: President of the University of |
| IndependentTrustees | Pennsylvania; Christopher H. Browne Distinguished |
| | Professor of Political Science, School of Arts and |
| Emerson U. Fullwood | Sciences, and Professor of Communication, Annenberg |
| Born 1948. Trustee Since January 2008. Principal | School for Communication, with secondary faculty |
| Occupation(s) During the Past Five Years and | appointments in the Department of Philosophy, School |
| Other Experience: Executive Chief Staff and | of Arts and Sciences, and at the Graduate School of |
| Marketing Officer for North America and Corporate | Education, University of Pennsylvania; Trustee of the |
| Vice President (retired 2008) of Xerox Corporation | National Constitution Center; Chair of the Presidential |
| (document management products and services); | Commission for the Study of Bioethical Issues. |
| Executive in Residence and 2009–2010 Distinguished | |
| Minett Professor at the Rochester Institute of | JoAnn Heffernan Heisen |
| Technology; Director of SPX Corporation (multi-industry | Born 1950. Trustee Since July 1998. Principal |
| manufacturing), the United Way of Rochester, the | Occupation(s) During the Past Five Years and |
| University of Rochester Medical Center, Monroe | Other Experience: Corporate Vice President and |
| Community College Foundation, and North Carolina | Chief Global Diversity Officer (retired 2008) and |
| A&T University. | Member of the Executive Committee (1997–2008) |
| | of Johnson & Johnson (pharmaceuticals/medical |
| | devices/consumer products); Director of Skytop |
| | Lodge Corporation (hotels) and the Robert Wood |
| | Johnson Foundation; Member of the Advisory |
| | Board of the Institute for Women’s Leadership |
| | at Rutgers University. |
| | |
| F. Joseph Loughrey | Executive Officers | |
| Born 1949. Trustee Since October 2009. Principal | | |
| Occupation(s) During the Past Five Years and Other | Glenn Booraem | |
| Experience: President and Chief Operating Officer | Born 1967. Treasurer Since May 2015. Principal |
| (retired 2009) of Cummins Inc. (industrial machinery); | Occupation(s) During the Past Five Years and |
| Chairman of the Board of Hillenbrand, Inc. (specialized | Other Experience: Principal of The Vanguard Group, |
| consumer services), and of Oxfam America; Director | Inc.; Treasurer of each of the investment companies |
| of SKF AB (industrial machinery), Hyster-Yale Materials | served by The Vanguard Group; Controller of each of |
| Handling, Inc. (forklift trucks), the Lumina Foundation | the investment companies served by The Vanguard |
| for Education, and the V Foundation for Cancer | Group (2010–2015); Assistant Controller of each of |
| Research; Member of the Advisory Council for the | the investment companies served by The Vanguard |
| College of Arts and Letters and of the Advisory Board | Group (2001–2010). | |
| to the Kellogg Institute for International Studies, both | | |
| at the University of Notre Dame. | Thomas J. Higgins | |
| Born 1957. Chief Financial Officer Since September |
| Mark Loughridge | 2008. Principal Occupation(s) During the Past Five |
| Born 1953. Trustee Since March 2012. Principal | Years and Other Experience: Principal of The Vanguard |
| Occupation(s) During the Past Five Years and Other | Group, Inc.; Chief Financial Officer of each of the |
| Experience: Senior Vice President and Chief Financial | investment companies served by The Vanguard Group; |
| Officer (retired 2013) at IBM (information technology | Treasurer of each of the investment companies served |
| services); Fiduciary Member of IBM’s Retirement Plan | by The Vanguard Group (1998–2008). |
| Committee (2004–2013); Director of the Dow Chemical | | |
| Company; Member of the Council on Chicago Booth. | Peter Mahoney | |
| Born 1974. Controller Since May 2015. Principal |
| Scott C. Malpass | Occupation(s) During the Past Five Years and |
| Born 1962. Trustee Since March 2012. Principal | Other Experience: Head of Global Fund Accounting |
| Occupation(s) During the Past Five Years and Other | at The Vanguard Group, Inc.; Controller of each of the |
| Experience: Chief Investment Officer and Vice | investment companies served by The Vanguard Group; |
| President at the University of Notre Dame; Assistant | Head of International Fund Services at The Vanguard |
| Professor of Finance at the Mendoza College of | Group (2008–2014). | |
| Business at Notre Dame; Member of the Notre Dame | | |
| 403(b) Investment Committee; Board Member of | Heidi Stam | |
| TIFF Advisory Services, Inc., and Catholic Investment | Born 1956. Secretary Since July 2005. Principal |
| Services, Inc. (investment advisors); Member of | Occupation(s) During the Past Five Years and Other |
| the Investment Advisory Committee of Major | Experience: Managing Director of The Vanguard |
| League Baseball. | Group, Inc.; General Counsel of The Vanguard Group; |
| Secretary of The Vanguard Group and of each of the |
| investment companies served by The Vanguard Group; |
| André F. Perold | Director and Senior Vice President of Vanguard |
| Born 1952. Trustee Since December 2004. Principal | Marketing Corporation. |
| Occupation(s) During the Past Five Years and Other | | |
| Experience: George Gund Professor of Finance and | | |
| Banking, Emeritus at the Harvard Business School | Vanguard Senior ManagementTeam |
| (retired 2011); Chief Investment Officer and Managing | Mortimer J. Buckley | Chris D. McIsaac |
| Partner of HighVista Strategies LLC (private investment | Kathleen C. Gubanich | James M. Norris |
| firm); Director of Rand Merchant Bank; Overseer of | Paul A. Heller | Thomas M. Rampulla |
| the Museum of Fine Arts Boston. | Martha G. King | Glenn W. Reed |
| John T. Marcante | Karin A. Risi |
| Peter F. Volanakis | | |
| Born 1955. Trustee Since July 2009. Principal | | |
| Occupation(s) During the Past Five Years and Other | Chairman Emeritus and Senior Advisor |
| Experience: President and Chief Operating Officer | | |
| (retired 2010) of Corning Incorporated (communications | John J. Brennan | |
| equipment); Trustee of Colby-Sawyer College; | Chairman, 1996–2009 | |
| Member of the Advisory Board of the Norris Cotton | Chief Executive Officer and President, 1996–2008 |
| Cancer Center and of the Advisory Board of the | | |
| Parthenon Group (strategy consulting). | Founder | |
| | John C. Bogle | |
| | Chairman and Chief Executive Officer, 1974–1996 |
1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.
|  |
| | P.O. Box 2600 |
| | Valley Forge, PA 19482-2600 |
| |
| |
| |
| Connect with Vanguard® > vanguard.com | |
| |
| |
| |
| Fund Information > 800-662-7447 | CFA® is a registered trademark owned by CFA Institute. |
| Direct Investor Account Services > 800-662-2739 | |
| Institutional Investor Services > 800-523-1036 | |
| Text Telephone for People | |
| Who Are Deaf or Hard of Hearing> 800-749-7273 | |
| |
| This material may be used in conjunction | |
| with the offering of shares of any Vanguard | |
| fund only if preceded or accompanied by | |
| the fund’s current prospectus. | |
| |
| All comparative mutual fund data are from Lipper, a | |
| Thomson Reuters Company, or Morningstar, Inc., unless | |
| otherwise noted. | |
| |
| You can obtain a free copy of Vanguard’s proxy voting | |
| guidelines by visiting vanguard.com/proxyreporting or by | |
| calling Vanguard at 800-662-2739. The guidelines are | |
| also available from the SEC’s website, sec.gov. In | |
| addition, you may obtain a free report on how your fund | |
| voted the proxies for securities it owned during the 12 | |
| months ended June 30. To get the report, visit either | |
| vanguard.com/proxyreporting or sec.gov. | |
| |
| You can review and copy information about your fund at | |
| the SEC’s Public Reference Room in Washington, D.C. To | |
| find out more about this public service, call the SEC at | |
| 202-551-8090. Information about your fund is also | |
| available on the SEC’s website, and you can receive | |
| copies of this information, for a fee, by sending a | |
| request in either of two ways: via email addressed to | |
| publicinfo@sec.gov or via regular mail addressed to the | |
| Public Reference Section, Securities and Exchange | |
| Commission, Washington, DC 20549-1520. | |
| |
| | © 2016 The Vanguard Group, Inc. |
| | All rights reserved. |
| | Vanguard Marketing Corporation, Distributor. |
| |
| | Q140 012016 |
Item 2: Code of Ethics. The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.
Item 3: Audit Committee Financial Expert. The following members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts serving on its Audit Committee, and to be independent: Rajiv L. Gupta, Amy Gutmann, JoAnn Heffernan Heisen, F. Joseph Loughrey, Mark Loughridge, Scott C. Malpass, and André F. Perold.
Item 4: Principal Accountant Fees and Services.
(a) Audit Fees.
Audit Fees of the Registrant
Fiscal Year Ended November 30, 2015: $63,000
Fiscal Year Ended November 30, 2014: $60,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended November 30, 2015: $7,000,200
Fiscal Year Ended November 30, 2014: $6,605,127
Includes fees billed in connection with audits of the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc. and Vanguard Marketing Corporation.
(b) Audit-Related Fees.
Fiscal Year Ended November 30, 2015: $2,899,096
Fiscal Year Ended November 30, 2014: $2,176,479
Includes fees billed in connection with assurance and related services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(c) Tax Fees.
Fiscal Year Ended November 30, 2015: $353,389
Fiscal Year Ended November 30, 2014: $316,869
Includes fees billed in connection with tax compliance, planning, and advice services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(d) All Other Fees.
Fiscal Year Ended November 30, 2015: $202,313
Fiscal Year Ended November 30, 2014: $198,163
Includes fees billed for services related to tax reported information provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(e) (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.
In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.
The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., or other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant.
(2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.
(g) Aggregate Non-Audit Fees.
Fiscal Year Ended November 30, 2015: $555,702
Fiscal Year Ended November 30, 2014: $515,032
Includes fees billed for non-audit services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not Applicable.
Item 6: Investments.
Not Applicable.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies.
Not Applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not Applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers.
Not Applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. There were no significant changes in Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) Code of Ethics.
(b) Certifications.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | VANGUARD NEW JERSEY TAX-FREE FUNDS |
| |
| BY: | /s/ F. WILLIAM MCNABB III* |
| | F. WILLIAM MCNABB III |
| | CHIEF EXECUTIVE OFFICER |
| |
| Date: January 19, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | VANGUARD NEW JERSEY TAX-FREE FUNDS |
| |
| BY: | /s/ F. WILLIAM MCNABB III* |
| | F. WILLIAM MCNABB III |
| | CHIEF EXECUTIVE OFFICER |
| Date: January 19, 2016 |
| VANGUARD NEW JERSEY TAX-FREE FUNDS |
| |
| BY: | /s/ THOMAS J. HIGGINS* |
| | THOMAS J. HIGGINS |
| | CHIEF FINANCIAL OFFICER |
| Date: January 19, 2016 |
* By: /s/ Heidi Stam
Heidi Stam, pursuant to a Power of Attorney filed on April 22, 2014 see file Number 2-17620, Incorporated by Reference.
