As an investor of the Portfolio, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Portfolio expenses. Examples of transaction costs include account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Portfolio and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six-month period, the Portfolio limited these expenses; had it not done so, expenses would have been higher for the Tax-Free Investment Class. The example in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (May 1, 2009 to October 31, 2009).
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
For more information, please refer to the Portfolio's prospectus.
Following the Portfolio's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. The form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330.
| Principal Amount ($) | Value ($) |
| |
Municipal Investments 100.4% |
Alabama 0.4% |
Pell City, AL, Special Care Facilities Financing Authority Revenue, Noland Health Services, Series A, 0.23%*, 12/1/2039, US Bank NA (a) | 4,000,000 | 4,000,000 |
Tuscaloosa County, AL, Industrial Development Gulf Opportunity Zone, Hunt Refining Project, Series C, 0.36%*, 12/1/2027, JPMorgan Chase Bank (a) | 10,000,000 | 10,000,000 |
| 14,000,000 |
Arizona 1.4% |
Apache County, AZ, Industrial Development Authority Revenue, Tucson Electric Power Co., Series 83C, 0.25%*, 12/15/2018, Bank of New York Mellon Corp. (a) | 3,080,000 | 3,080,000 |
Arizona, Salt River Pima-Maricopa Indian Community, 0.26%*, 10/1/2026, Bank of America NA (a) | 4,100,000 | 4,100,000 |
Phoenix, AZ, Civic Improvement Corp., Airport Revenue, 0.33%, 1/5/2010 | 47,000,000 | 47,000,000 |
| 54,180,000 |
California 9.8% |
Alameda County, CA, Industrial Development Authority Revenue, BEMA Electronic Manufacturing, Inc. Project, Series A, AMT, 0.5%*, 4/1/2034, Comerica Bank (a) | 3,200,000 | 3,200,000 |
Alameda County, CA, Industrial Development Authority Revenue, Caravan Trading Co., AMT, 0.5%*, 4/1/2014, Comerica Bank (a) | 2,350,000 | 2,350,000 |
Alameda County, CA, Industrial Development Authority Revenue, Essai, Inc. Project, AMT, 0.45%*, 8/1/2035, Comerica Bank (a) | 4,000,000 | 4,000,000 |
Alameda County, CA, Industrial Development Authority Revenue, Malberg Engineering, Inc., AMT, 0.5%*, 8/1/2031, Comerica Bank (a) | 2,170,000 | 2,170,000 |
Alameda County, CA, Industrial Development Authority Revenue, White Brothers Project, AMT, 0.5%*, 3/1/2032, Comerica Bank (a) | 2,480,000 | 2,480,000 |
California, Bay Area Toll Authority, Toll Bridge Revenue, Series 2985, 144A, 0.21%*, 4/1/2039 | 47,550,000 | 47,550,000 |
California, Clipper Tax-Exempt Certificate Trust, Series 2007-38, 144A, 0.29%*, 5/15/2030 | 24,600,000 | 24,600,000 |
California, Housing Finance Agency Revenue, Home Mortgage: | |
| Series D, AMT, 0.4%*, 2/1/2043 | 14,000,000 | 14,000,000 |
| Series M, 144A, AMT, 0.45%*, 8/1/2024 | 18,765,000 | 18,765,000 |
| Series M, AMT, 0.45%*, 8/1/2033 | 10,480,000 | 10,480,000 |
| Series M, AMT, 0.5%*, 8/1/2034 | 31,760,000 | 31,760,000 |
| Series A, AMT, 0.5%*, 8/1/2035 | 19,415,000 | 19,415,000 |
| Series K, AMT, 0.5%*, 8/1/2037 | 18,100,000 | 18,100,000 |
| Series K, AMT, 0.5%*, 2/1/2038 | 18,000,000 | 18,000,000 |
| Series F, AMT, 0.65%*, 2/1/2033 (b) | 9,200,000 | 9,200,000 |
California, Housing Finance Agency Revenue, Multi-Family Housing: | |
| Series C, AMT, 0.4%*, 2/1/2033 | 30,400,000 | 30,400,000 |
| Series C, AMT, 0.53%*, 2/1/2037 | 1,955,000 | 1,955,000 |
| Series C, AMT, 0.53%*, 8/1/2037 | 16,190,000 | 16,190,000 |
California, Municipal Finance Authority, Multi-Family Housing Revenue, Series 2410, 144A, AMT, 0.41%*, 1/1/2020, JPMorgan Chase Bank (a) | 4,915,000 | 4,915,000 |
California, State Department of Water Resources, Power Supply Revenue, Series C-7, 0.3%*, 5/1/2022 (b) | 7,950,000 | 7,950,000 |
California, State Kindergarten, Series A6, 0.19%*, 5/1/2034, Citibank NA & California State Teacher's Retirement System (a) | 7,000,000 | 7,000,000 |
California, Statewide Communities Development, Series 2114, 144A, AMT, 0.31%*, 9/1/2046 | 3,765,000 | 3,765,000 |
California, Statewide Communities Development Authority, Certificates of Participation, 0.32%*, 2/1/2028, Union Bank of CA (a) | 1,580,000 | 1,580,000 |
California, Statewide Communities Development Authority, Multi-Family Housing Revenue: | |
| Series 2680, 144A, 0.36%*, 5/15/2018, JPMorgan Chase Bank (a) | 20,000,000 | 20,000,000 |
| Series 2681, 144A, AMT, 0.51%*, 5/15/2018, JPMorgan Chase Bank (a) | 16,190,000 | 16,190,000 |
Lemoore, CA, Certificates of Participation, Municipal Golf Course Refining Project, 144A, 0.34%*, 11/1/2020, Union Bank of CA (a) | 2,000,000 | 2,000,000 |
San Diego County, CA, Water Authority, Series 3, 0.4%, 12/3/2009 | 21,035,000 | 21,035,000 |
San Diego, CA, Certificates of Participation, 0.41%*, 12/1/2028, Comerica Bank (a) | 1,825,000 | 1,825,000 |
San Francisco, CA, City & County Multi-Family Housing Revenue, Series 34G, 144A, 0.23%*, 12/1/2018 | 4,000,000 | 4,000,000 |
Tustin, CA, Unified School District, Series 2007-336, 144A, 0.86%*, 9/1/2011, Bank of America NA (a) | 19,860,000 | 19,860,000 |
| 384,735,000 |
Colorado 2.8% |
Colorado, Centerra Metropolitan District 1 Revenue, Refunding and Improvement, 0.77%*, 12/1/2029, Compass Bank (a) | 14,945,000 | 14,945,000 |
Colorado, Educational & Cultural Facilities Authority Revenue, Bear Creek School Project, 0.22%*, 10/1/2032, US Bank NA (a) | 6,200,000 | 6,200,000 |
Colorado, Educational & Cultural Facilities Authority Revenue, Fremont Christian School Project, 0.22%*, 6/1/2038, US Bank NA (a) | 16,610,000 | 16,610,000 |
Colorado, Educational & Cultural Facilities Authority Revenue, Linfield Christian School Project, 0.22%*, 5/1/2030, Evangelical Christian Credit Union (a) | 8,100,000 | 8,100,000 |
Colorado, Educational & Cultural Facilities Authority Revenue, Trinity School Project, 0.26%*, 9/1/2026, Branch Banking & Trust (a) | 1,600,000 | 1,600,000 |
Colorado, Goldsmith Metropolitan District, 0.25%*, 12/1/2034, Compass Bank (a) | 5,270,000 | 5,270,000 |
Colorado, Health Facilities Authority Revenue, Bethesda Adult Communities, Series A, 0.22%*, 8/15/2034, LaSalle Bank NA (a) | 18,740,000 | 18,740,000 |
Colorado, Health Facilities Authority Revenue, Fraiser Meadows Community Project, 0.22%*, 6/1/2038, JPMorgan Chase Bank (a) | 14,000,000 | 14,000,000 |
Colorado, Lowry Economic Redevelopment Authority Revenue, Series A, 0.77%*, 12/1/2020, Compass Bank (a) | 6,965,000 | 6,965,000 |
Colorado, RBC Municipal Products, Inc. Trust, Series C-11, 144A, 0.28%*, 12/1/2031, Royal Bank of Canada (a) | 17,580,000 | 17,580,000 |
| 110,010,000 |
Connecticut 0.1% |
Connecticut, State Health & Educational Facilities, 0.45%, 1/7/2010 | 6,000,000 | 6,000,000 |
Delaware 0.6% |
Delaware, BB&T Municipal Trust, Series 5000, 144A, 0.42%*, 10/1/2028, Rabobank International (a) | 15,992,208 | 15,992,208 |
Delaware, State Economic Development Authority Revenue, YMCA Delaware Project, 0.2%*, 5/1/2036, PNC Bank NA (a) | 6,275,000 | 6,275,000 |
| 22,267,208 |
District of Columbia 0.3% |
District of Columbia, Center for Internships & Academic Revenue, 0.26%*, 7/1/2036, Branch Banking & Trust (a) | 3,400,000 | 3,400,000 |
District of Columbia, Housing Finance Agency, Multi-Family Housing Revenue, Series R-433, 144A, AMT, 0.32%*, 12/1/2021 | 7,780,000 | 7,780,000 |
| 11,180,000 |
Florida 7.6% |
Alachua County, FL, Housing Finance Authority, Multi-Family Revenue, Santa Fe I Apartments, AMT, 0.35%*, 12/15/2038, Citibank NA (a) | 3,850,000 | 3,850,000 |
Broward County, FL, Housing Finance Authority, Multi-Family Housing Revenue, Palms of Deerfield Beach, AMT, 0.35%*, 8/15/2038, Citibank NA (a) | 2,560,000 | 2,560,000 |
Florida, BB&T Municipal Trust: |
| Series 1010, 144A, 0.33%*, 1/15/2019, Branch Banking & Trust (a) | 7,290,000 | 7,290,000 |
| Series 1029, 0.33%*, 7/1/2024, Branch Banking & Trust (a) | 10,830,000 | 10,830,000 |
| Series 1031, 0.33%*, 8/1/2024, Branch Banking & Trust (a) | 12,780,000 | 12,780,000 |
| Series 1012, 144A, 0.33%*, 11/1/2024, Branch Banking & Trust (a) | 9,870,000 | 9,870,000 |
Florida, Capital Trust Agency Housing Revenue, Atlantic Housing Foundation, Series A, 0.21%*, 7/15/2024 | 19,000,000 | 19,000,000 |
Florida, Development Finance Corp., Enterprise Board Program, Out of Door Academy, 0.27%*, 7/1/2038, Northern Trust Co. (a) | 13,500,000 | 13,500,000 |
Florida, Housing Finance Corp., Multi-Family Revenue, Victoria Park, Series J-1, 0.24%*, 10/15/2032 | 8,620,000 | 8,620,000 |
Florida, RBC Municipal Products, Inc. Trust, Series E-4, 144A, AMT, 0.38%*, 6/1/2010, Royal Bank of Canada (a) | 9,995,000 | 9,995,000 |
Florida, State Governmental Financing Commission Revenue: | |
| 0.34%*, 7/1/2016, Dexia Credit Local (a) | 24,650,000 | 24,650,000 |
| 0.6%, 11/10/2009 | 74,000,000 | 74,000,000 |
| 0.75%, 11/4/2009 | 50,000,000 | 50,000,000 |
Highlands County, FL, Health Facilities Authority Revenue, Adventist Health Hospital, Series G, 0.22%*, 11/15/2035, Branch Banking & Trust (a) | 8,000,000 | 8,000,000 |
Lee County, FL, Industrial Development Authority, Health Care Facilities Revenue, Hope Hospice Project, 0.27%*, 10/1/2027, Northern Trust Co. (a) | 17,000,000 | 17,000,000 |
Palm Beach County, FL, Community Foundation, Palm Beach Project Revenue, 0.4%*, 3/1/2034, Northern Trust Co. (a) | 4,750,000 | 4,750,000 |
Pinellas County, FL, Educational Facilities Authority Revenue, Barry University Project, 0.26%*, 10/1/2037, Bank of America NA (a) | 9,340,000 | 9,340,000 |
Sarasota County, FL, Health Care Facilities Authority Revenue, Bay Village Project, 0.28%*, 12/1/2023, Bank of America NA (a) | 1,900,000 | 1,900,000 |
Sarasota County, FL, Public Hospital District Revenue, Sarasota Memorial Hospital, Series B, 0.2%*, 7/1/2037, Bank of America NA (a) | 7,500,000 | 7,500,000 |
Volusia County, FL, Housing Finance Authority, Multi-Family Housing Revenue, Cape Morris Cove Apartments, Series A, AMT, 0.31%*, 10/15/2042, JPMorgan Chase Bank (a) | 6,140,000 | 6,140,000 |
| 301,575,000 |
Georgia 4.8% |
Atlanta, GA, Revenue Bond, Series 2008-3046X, 144A, 0.31%*, 7/1/2037 (b) | 6,665,000 | 6,665,000 |
Cobb County, GA, Tax Anticipation Notes, 1.25%, 12/31/2009 | 110,000,000 | 110,143,821 |
Fulton County, GA, Development Authority Revenue, Doris & Alex Weber School Project, 0.26%*, 12/1/2030, Branch Banking & Trust (a) | 5,000,000 | 5,000,000 |
Fulton County, GA, Development Authority Revenue, Kings Ridge Christian School, 0.26%*, 5/1/2026, Branch Banking & Trust (a) | 2,500,000 | 2,500,000 |
Fulton County, GA, Development Authority Revenue, Mount Vernon Presbyterian School, 0.26%*, 8/1/2035, Branch Banking & Trust (a) | 2,700,000 | 2,700,000 |
Georgia, Municipal Electric Authority Power Revenue, Municipal Securities Trust Receipts, Series SGC-60, "A", 144A, 0.26%*, 1/1/2018 (b) | 4,680,000 | 4,680,000 |
Georgia, Private Colleges & Universities Authority Revenue, Mercer University Project: | |
| Series C, 0.27%*, 10/1/2031, Branch Banking & Trust (a) | 8,695,000 | 8,695,000 |
| Series A, 0.27%*, 10/1/2036, Branch Banking & Trust (a) | 11,040,000 | 11,040,000 |
Georgia, RBC Municipal Products, Inc. Trust, Series C-9, AMT, 0.38%*, 8/1/2016, Royal Bank of Canada (a) | 30,495,000 | 30,495,000 |
Georgia, State General Obligation, Series H-3, 0.25%*, 12/1/2026 | 9,319,000 | 9,319,000 |
| 191,237,821 |
Hawaii 0.3% |
Hawaii, State Department of Budget & Finance, Special Purpose Revenue, Hawaii Pacific Health, Series A, 0.23%*, 7/1/2035, Union Bank NA (a) | 11,100,000 | 11,100,000 |
Idaho 1.5% |
Idaho, Housing & Finance Association, Single Family Mortgage: | |
| Series B, AMT, 0.36%*, 7/1/2032 | 5,460,000 | 5,460,000 |
| "I", Series A, AMT, 0.36%*, 7/1/2033 | 6,280,000 | 6,280,000 |
| "I", Series B, AMT, 0.36%*, 7/1/2033 | 6,160,000 | 6,160,000 |
Idaho, Non-Profit Housing & Finance Association Facilities Revenue, College of Idaho Project, 0.22%*, 7/1/2030, US Bank NA (a) | 4,950,000 | 4,950,000 |
Idaho, State Tax Anticipation Notes, 2.5%, 6/30/2010 | 35,000,000 | 35,483,159 |
| 58,333,159 |
Illinois 8.0% |
Channahon, IL, Morris Hospital Revenue: |
| Series B, 0.24%*, 12/1/2032, US Bank NA (a) | 4,195,000 | 4,195,000 |
| Series C, 0.24%*, 12/1/2032, US Bank NA (a) | 5,355,000 | 5,355,000 |
Chicago, IL, Board of Education, Dedicated Revenues: |
| Series A-2, 0.22%*, 3/1/2026, Northern Trust Co. (a) | 5,900,000 | 5,900,000 |
| Series A-1, 0.23%*, 3/1/2026, Harris NA (a) | 4,900,000 | 4,900,000 |
Chicago, IL, General Obligation, Series 2008-068, 144A, 0.51%*, 1/1/2022, Dexia Credit Local (a) (b) | 11,540,000 | 11,540,000 |
Chicago, IL, Metropolitan Water Reclamation District, Greater Chicago, Series 2008-052, 144A, 0.51%*, 12/1/2035 | 25,160,000 | 25,160,000 |
Chicago, IL, O'Hare International Airport Revenue, 0.35%, 11/10/2009 | 7,000,000 | 7,000,000 |
Cook County, IL, Catholic Theological Union Project Revenue, 0.35%*, 2/1/2035, Harris NA (a) | 6,000,000 | 6,000,000 |
Illinois, BB&T Municipal Trust, Series 5001, 144A, 0.42%*, 6/1/2020, Rabobank International (a) | 19,456,657 | 19,456,657 |
Illinois, Development Finance Authority Revenue, Shelby Memorial Hospital Association, Inc., Series B-1, 0.39%*, 10/1/2029, Comerica Bank (a) | 7,315,000 | 7,315,000 |
Illinois, Development Finance Authority, Industrial Development Revenue, Home Run Inn Frozen Foods, AMT, 1.4%*, 4/1/2020, JPMorgan Chase Bank (a) | 1,245,000 | 1,245,000 |
Illinois, Education Facilities Authority Revenue: |
| 0.35%, 11/19/2009 | 30,000,000 | 30,000,000 |
| 0.35%, 11/23/2009 | 20,200,000 | 20,200,000 |
Illinois, Educational Facilities Authority Revenues, University of Chicago: | |
| Series B-1, 0.52%*, Mandatory Put 8/12/2010 @ 100, 7/1/2036 | 9,500,000 | 9,499,306 |
| Series B-2, 0.52%*, Mandatory Put 8/26/2010 @ 100, 7/1/2036 | 8,600,000 | 8,600,000 |
Illinois, Finance Authority Industrial Development Revenue, Fitzpatrick Brothers, 0.27%*, 4/1/2033, Northern Trust Co. (a) | 5,000,000 | 5,000,000 |
Illinois, Finance Authority Pollution Control Revenue, Commonwealth Edison Co.: | |
| Series F, 144A, 0.25%*, 3/1/2017, JPMorgan Chase Bank (a) | 10,100,000 | 10,100,000 |
| Series E, 144A, 0.25%*, 5/1/2021, JPMorgan Chase Bank (a) | 8,305,000 | 8,305,000 |
Illinois, Finance Authority Revenue, "A", 144A, 0.21%*, 12/1/2042 | 8,565,000 | 8,565,000 |
Illinois, Finance Authority Revenue, Clare Oaks: |
| Series C, 0.22%*, 11/1/2040, Sovereign Bank FSB (a) | 5,000,000 | 5,000,000 |
| Series D, 0.22%*, 11/1/2040, Sovereign Bank FSB (a) | 3,500,000 | 3,500,000 |
Illinois, Finance Authority Revenue, Northwestern University, Series A, 0.5%*, Mandatory Put 3/31/2010 @ 100, 12/1/2046 | 29,000,000 | 29,000,000 |
Illinois, Finance Authority Revenue, The Art Institution of Chicago: | |
| Series B-1, 0.3%*, 9/1/2038, JPMorgan Chase Bank (a) | 5,670,000 | 5,670,000 |
| Series B-2, 0.3%*, 9/1/2038, Northern Trust Co. (a) | 2,595,000 | 2,595,000 |
Illinois, Finance Authority Student Housing Revenue, CHF-Dekalb LLC Project, Series A, 0.25%*, 7/1/2038, Sovereign Bank FSB (a) | 6,000,000 | 6,000,000 |
Illinois, RBC Municipal Products, Inc. Trust, Finance Authority Revenue, Series E-10, 144A, 0.28%*, 3/1/2011, Royal Bank of Canada (a) | 10,000,000 | 10,000,000 |
Illinois, Regional Transit Improvements, Series 2008-3043X, 144A, 0.36%*, 7/1/2026 | 6,665,000 | 6,665,000 |
Illinois, University of Illinois Revenue, "A", 144A, 0.24%*, 4/1/2035 | 14,300,000 | 14,300,000 |
Mundelein, IL, Industrial Development Revenue, MacLean Fogg Co. Project, AMT, 0.57%*, 1/1/2015, Northern Trust Co. (a) | 6,500,000 | 6,500,000 |
Woodstock, IL, Multi-Family Housing Revenue, Willow Brooke Apartments, AMT, 0.31%*, 4/1/2042, Wells Fargo Bank NA (a) | 28,000,000 | 28,000,000 |
| 315,565,963 |
Indiana 0.7% |
Indiana, Finance Authority Hospital Revenue, Community Foundation of Northwest Indiana, 0.22%*, 8/1/2029, Harris NA (a) | 6,970,000 | 6,970,000 |
Indiana, Health & Educational Facility, Financing Authority Revenue, Greenwood Village South Project, Series A, 0.22%*, 5/1/2036, Sovereign Bank FSB (a) | 12,625,000 | 12,625,000 |
Terre Haute, IN, Westminster Village Revenue, Series A, 0.22%*, 8/1/2036, Sovereign Bank FSB (a) | 9,245,000 | 9,245,000 |
| 28,840,000 |
Iowa 1.4% |
Iowa, Finance Authority Revenue, Senior Revenue Anticipation Notes, Series A, 2.5%, 6/23/2010 | 36,000,000 | 36,447,424 |
Iowa, Finance Authority, Health Facilities Revenue, Care Initiatives Project, 0.2%*, 11/1/2026, KBC Bank NV (a) | 4,010,000 | 4,010,000 |
Iowa, State School Cash Anticipation Program, School Corporations, Series B, 3.0%, 1/21/2010, US Bank NA (a) | 14,000,000 | 14,067,791 |
| 54,525,215 |
Kansas 0.4% |
Kansas, State Development Finance Authority, Multi-Family Revenue, Oak Ridge Park II Project, Series X, AMT, 0.36%*, 12/1/2036, Marshall & Ilsley (a) | 3,650,000 | 3,650,000 |
Lenexa, KS, Series 2007-302, 144A, 0.76%*, 2/1/2012 | 12,495,000 | 12,495,000 |
| 16,145,000 |
Kentucky 0.1% |
Mason County, KY, Pollution Control Revenue, East Kentucky Power Corp., Inc., Series B-2, 1.01%*, 10/15/2014 | 4,000,000 | 4,000,000 |
Maine 0.5% |
Maine, State Housing Authority Mortgage Purchase: |
| Series G, AMT, 0.25%*, 11/15/2037 | 4,970,000 | 4,970,000 |
| Series B, AMT, 0.3%*, 11/15/2041 | 5,000,000 | 5,000,000 |
| Series D, AMT, 0.31%*, 11/15/2042 | 10,000,000 | 10,000,000 |
| 19,970,000 |
Maryland 1.5% |
Baltimore, MD, Municipal Securities Trust Receipts, SGA 152, "A", 144A, 0.33%*, 7/1/2020, Societe Generale (a) | 10,000,000 | 10,000,000 |
Maryland, State Health & Higher Educational Facilities Authority Revenue: | |
| 0.4%, 11/3/2009 | 25,000,000 | 25,000,000 |
| Series A, 0.4%, 1/7/2010 | 13,777,000 | 13,777,000 |
Maryland, State Health & Higher Educational Facilities Authority Revenue, Upper Chesapeake Hospital, Series B, 0.26%*, 1/1/2043, Branch Banking & Trust (a) | 11,955,000 | 11,955,000 |
| 60,732,000 |
Massachusetts 2.4% |
Massachusetts, Bay Transportation Authority, General Transportation Systems, 0.3%*, 3/1/2030 | 15,400,000 | 15,400,000 |
Massachusetts, Bay Transportation Authority, Sales Tax Revenue, Series A-1, 0.16%*, 7/1/2021 | 16,400,000 | 16,400,000 |
Massachusetts, Macon Trust, Series 2007-310, 144A, 0.76%*, 6/15/2012, Bank of America NA (a) | 4,150,000 | 4,150,000 |
Massachusetts, State Development Finance Agency Revenue, New Bedford Waste Services LLC, AMT, 0.42%*, 6/1/2021, Comerica Bank (a) | 3,520,000 | 3,520,000 |
Massachusetts, State Development Finance Agency Revenue, Northfield Mount Hermon, 0.26%*, 10/1/2042, JPMorgan Chase Bank (a) | 5,000,000 | 5,000,000 |
Massachusetts, State Development Finance Agency Revenue, The Fay School, Inc., 0.3%*, 4/1/2038, TD Bank NA (a) | 5,400,000 | 5,400,000 |
Massachusetts, State Development Finance Agency Revenue, Wentworth Institute, 0.4%*, 10/1/2030, RBS Citizens NA (a) | 28,285,000 | 28,285,000 |
Massachusetts, State General Obligation, Series B, 0.24%*, 3/1/2026 | 9,800,000 | 9,800,000 |
Massachusetts, State Industrial Finance Agency Revenue, Groton School Issue, Series B, 0.3%*, 3/1/2028 | 8,410,000 | 8,410,000 |
| 96,365,000 |
Michigan 1.7% |
Michigan, RBC Municipal Products, Inc. Trust, Series L-25, 144A, AMT, 0.35%*, 9/1/2033, Royal Bank of Canada (a) | 66,745,000 | 66,745,000 |
Minnesota 0.3% |
Coon Rapids, MN, Industrial Development Revenue, Kurt Manufacturing Project: | |
| AMT, 0.31%*, 11/1/2027, US Bank NA (a) | 5,000,000 | 5,000,000 |
| AMT, 0.51%*, 11/1/2017, US Bank NA (a) | 2,565,000 | 2,565,000 |
Minnesota, State General Obligation, Prerefunded 6/1/2010 @ 100, 5.625%, 6/1/2019 | 3,000,000 | 3,089,112 |
| 10,654,112 |
Mississippi 0.2% |
Mississippi, Redstone Partners Floaters/Residuals Trust, Series C, 144A, AMT, 0.46%*, 12/1/2047, Wachovia Bank NA (a) | 9,375,000 | 9,375,000 |
Missouri 0.7% |
Missouri, Bi-State Development Agency, Illinois Metropolitan District Revenue, Metrolink, Series A, 0.19%*, 10/1/2035, JPMorgan Chase Bank (a) | 8,000,000 | 8,000,000 |
Missouri, State Health & Educational Facilities Authority Revenue, Lutheran Senior Services Project, 0.22%*, 2/1/2039, US Bank NA (a) | 9,000,000 | 9,000,000 |
Platte County, MO, Industrial Development Authority Revenue, Complete Home Concepts, Series A, AMT, 0.31%*, 1/1/2039, Columbian Bank (a) | 6,800,000 | 6,800,000 |
Springfield, MO, Industrial Development Authority Revenue, Abec, Inc. Project, AMT, 0.41%*, 6/1/2028, US Bank NA (a) | 3,100,000 | 3,100,000 |
| 26,900,000 |
Nebraska 0.3% |
Nebraska, Investment Finance Authority, Single Family Housing Revenue: | |
| Series B, AMT, 0.4%*, 9/1/2034 | 3,885,000 | 3,885,000 |
| Series D, AMT, 0.4%*, 9/1/2034 | 3,355,000 | 3,355,000 |
| Series E, AMT, 0.4%*, 9/1/2034 | 1,485,000 | 1,485,000 |
Omaha, NE, Public Power District Electric Revenue, Series R-11291, 144A, 0.21%*, 8/1/2012 | 2,485,000 | 2,485,000 |
| 11,210,000 |
Nevada 1.6% |
Clark County, NV, General Obligation, Series 3489Z, 144A, 0.2%*, 1/1/2017 | 11,965,000 | 11,965,000 |
Clark County, NV, School District Building, Series A, 5.0%, 6/15/2010 | 20,800,000 | 21,352,248 |
Nevada, Housing Division, Multi-Unit Housing, Apache Project, Series A, AMT, 0.33%*, 10/15/2032 | 4,400,000 | 4,400,000 |
Nevada, Housing Division, Single Family Mortgage Revenue: |
| Series A, AMT, 0.45%*, 10/1/2039 | 14,700,000 | 14,700,000 |
| Series B, AMT, 0.45%*, 4/1/2042 | 8,000,000 | 8,000,000 |
Nevada, State Director Department of Business & Industry, Nevada Cancer Institute Project, 0.26%*, 12/1/2033, Bank of America NA (a) | 4,000,000 | 4,000,000 |
| 64,417,248 |
New Hampshire 0.9% |
New Hampshire, Health & Education Facilities Authority Revenue, Phillips Exeter Academy, 0.25%*, 9/1/2042 | 20,000,000 | 20,000,000 |
New Hampshire, Health & Education Facilities Authority Revenue, RiverWoods at Exeter, 0.22%*, 3/1/2038, Bank of America NA (a) | 14,000,000 | 14,000,000 |
| 34,000,000 |
New Jersey 0.1% |
New Jersey, Economic Development Authority, Industrial Development Revenue, CST-Products LLC Project, AMT, 0.42%*, 4/1/2026, National Bank of Canada (a) | 2,840,000 | 2,840,000 |
New Mexico 1.1% |
New Mexico, Educational Assistance Foundation: |
| Series A-1, AMT, 0.3%*, 4/1/2034, Royal Bank of Canada (a) | 10,000,000 | 10,000,000 |
| Series A-2, AMT, 0.3%*, 4/1/2034, Royal Bank of Canada (a) | 10,000,000 | 10,000,000 |
University of New Mexico, Systems Improvement Revenues, 0.29%*, 6/1/2026 | 23,655,000 | 23,655,000 |
| 43,655,000 |
New York 2.4% |
Glen Cove, NY, Housing Authority Revenue, Series 57G, 144A, AMT, 0.22%*, 10/1/2026 | 3,900,000 | 3,900,000 |
Hempstead, NY, Industrial Development Agency Revenue, Series 92G, 144A, AMT, 0.22%*, 10/1/2045 | 835,000 | 835,000 |
Nassau County, NY, Interim Finance Authority Revenue: |
| Series D-2, 0.2%*, 11/15/2015 | 3,000,000 | 3,000,000 |
| Series D-1, 0.22%*, 11/15/2017 | 1,310,000 | 1,310,000 |
New York, Metropolitan Transportation Authority Revenue, Series D-2, 0.25%*, 11/1/2032 (b) | 12,665,000 | 12,665,000 |
New York, State Dormitory Authority Revenues, State Supported Debt, City University of New York, Series C, 0.18%*, 7/1/2031, Bank of America NA (a) | 3,300,000 | 3,300,000 |
New York, State Housing Finance Agency Revenue, 100 Maiden Lane, Series A, 0.18%*, 5/15/2037 | 12,000,000 | 12,000,000 |
New York, State Housing Finance Agency Revenue, Helena Housing, Series A, AMT, 0.26%*, 5/15/2036 | 8,000,000 | 8,000,000 |
New York, State Urban Development Corp. Revenue: |
| Series 2008-053, 144A, 0.51%*, 3/15/2023, Dexia Credit Local (a) | 2,415,000 | 2,415,000 |
| Series 2008-054, 144A, 0.51%*, 3/15/2024, Dexia Credit Local (a) | 11,950,000 | 11,950,000 |
New York, Triborough Bridge & Tunnel Authority Revenues, Series A-1, 2.0%*, Mandatory Put 1/20/2010 @ 100, 11/15/2038 | 15,000,000 | 15,044,178 |
New York City, NY, Industrial Development Agency Revenue, Empowerment Zone, Tiago Holdings LLC, AMT, 0.24%*, 1/1/2037, ING Bank NV (a) | 2,400,000 | 2,400,000 |
Port Authority of New York & New Jersey, 0.35%, 1/6/2010 | 11,600,000 | 11,600,000 |
Ulster County, NY, Industrial Development Agency, Civic Facility Revenue, Kingston Regional Senior Living Corp., Series C, 0.25%*, 9/15/2037, Sovereign Bank FSB (a) | 6,000,000 | 6,000,000 |
| 94,419,178 |
North Carolina 4.5% |
Cleveland County, NC, Industrial Facilities & Pollution Control Financing Authority, Curtiss-Wright Flight Systems, AMT, 0.4%*, 11/1/2023, Bank of America NA (a) | 8,400,000 | 8,400,000 |
North Carolina, BB&T Municipal Trust: |
| Series 1027, 144A, 0.33%*, 3/1/2016, Branch Banking & Trust (a) | 11,085,000 | 11,085,000 |
| Series 1032, 0.33%*, 1/7/2024, Branch Banking & Trust (a) | 12,995,000 | 12,995,000 |
| Series 1008, 144A, 0.33%*, 3/1/2024, Branch Banking & Trust (a) | 6,225,000 | 6,225,000 |
| Series 1011, 144A, 0.33%*, 4/1/2024, Branch Banking & Trust (a) | 8,350,000 | 8,350,000 |
| Series 1024, 144A, 0.33%*, 5/31/2024, Branch Banking & Trust (a) | 5,240,000 | 5,240,000 |
| Series 1009, 144A, 0.33%*, 6/1/2024, Branch Banking & Trust (a) | 18,160,000 | 18,160,000 |
| Series 1025, 144A, 0.33%*, 6/1/2024, Branch Banking & Trust (a) | 11,300,000 | 11,300,000 |
North Carolina, Capital Educational Facilities Finance Agency Revenue, High Point University Project: | |
| 0.26%*, 12/1/2028, Branch Banking & Trust (a) | 6,000,000 | 6,000,000 |
| 0.26%*, 5/1/2030, Branch Banking & Trust (a) | 4,500,000 | 4,500,000 |
North Carolina, Capital Facilities Finance Agency, Educational Facilities Revenue, Salem Academy & College Project, 0.26%*, 8/1/2030, Branch Banking & Trust (a) | 7,170,000 | 7,170,000 |
North Carolina, Capital Facilities Finance Agency, Educational Facilities Revenue, Campbell University, 0.26%*, 10/1/2034, Branch Banking & Trust (a) | 5,925,000 | 5,925,000 |
North Carolina, Capital Facilities Finance Agency, Educational Facilities Revenue, Summit School, Inc. Project, 0.26%*, 6/1/2033, Branch Banking & Trust (a) | 2,700,000 | 2,700,000 |
North Carolina, Capital Facilities Finance Agency, Educational Revenue, Forsyth Country Day School, 0.26%*, 12/1/2031, Branch Banking & Trust (a) | 13,090,000 | 13,090,000 |
North Carolina, Medical Care Commission, Health Care Facilities Revenue, First Mortgage Deerfield, Series B, 0.26%*, 11/1/2038, Branch Banking & Trust (a) | 10,035,000 | 10,035,000 |
North Carolina, Medical Care Commission, Hospital Revenue, Southeastern Regional Medical Center, 0.26%*, 6/1/2037, Branch Banking & Trust (a) | 2,500,000 | 2,500,000 |
North Carolina, Medical Care Commission, Retirement Facilities Revenue, First Mortgage Southminster, Series C, 0.23%*, 10/1/2014, Sovereign Bank FSB (a) | 2,740,000 | 2,740,000 |
North Carolina, Medical Care Commission, Retirement Facilities Revenue, First Mortgage, United Methodist Church, Series B, 0.26%*, 10/1/2035, Branch Banking & Trust (a) | 4,805,000 | 4,805,000 |
North Carolina, Piedmont Triad Airport Authority Revenue: |
| Series A, 0.26%*, 7/1/2032, Branch Banking & Trust (a) | 3,450,000 | 3,450,000 |
| Series B, AMT, 0.4%*, 7/1/2029, Branch Banking & Trust (a) | 3,845,000 | 3,845,000 |
North Carolina, State Education Assistance Authority Revenue, Student Loan: | |
| Series A-2, AMT, 0.29%*, 9/1/2035, Royal Bank of Canada (a) | 9,000,000 | 9,000,000 |
| Series 5, AMT, 0.34%*, 9/1/2035, Branch Banking & Trust (a) | 16,570,000 | 16,570,000 |
University of North Carolina Revenues, Series R-11292, 144A, 0.21%*, 12/1/2015 | 3,075,000 | 3,075,000 |
| 177,160,000 |
Ohio 2.6% |
Akron, Bath & Copley, OH, Joint Township Hospital District Revenue, Health Care Facility, Summner Project, 0.35%*, 12/1/2032, KBC Bank NV (a) | 5,050,000 | 5,050,000 |
Cleveland, OH, Clinic Health System, 0.33%, 11/5/2009 | 15,800,000 | 15,800,000 |
Columbus, OH, Regional Airport Authority Revenue, Pooled Financing Program, Series A, 0.23%*, 1/1/2030, US Bank NA (a) | 5,065,000 | 5,065,000 |
Ohio, Clipper Tax-Exempt Certificate Trust, Certificate of Participation, Series 2009-28, 144A, AMT, 0.38%*, 3/1/2035 | 5,304,000 | 5,304,000 |
Ohio, Housing Finance Agency, Mortgage Revenue, Residential-Mortgage Backed, Series D, AMT, 0.28%*, 9/1/2036 | 45,000,000 | 45,000,000 |
Ohio, Redstone Partners Floaters/Residuals Trust, Housing Finance Authority: | |
| Series C, 144A, 0.46%*, 6/1/2048, Wachovia Bank NA (a) | 9,780,000 | 9,780,000 |
| Series D, 144A, AMT, 0.46%*, 6/1/2048, Wachovia Bank NA (a) | 4,340,000 | 4,340,000 |
Ohio, State Housing Finance Authority Revenue, Series 2008-3308, 144A, AMT, 0.41%*, 3/1/2033 | 10,965,000 | 10,965,000 |
| 101,304,000 |
Oklahoma 0.4% |
Oklahoma, Development Finance Authority, Continuing Care Retirement, Inverness Village Project, Series A, 0.25%*, 1/1/2042, KBC Bank NV (a) | 15,835,000 | 15,835,000 |
Oregon 0.4% |
Salem, OR, Hospital Facility Authority Revenue, Capital Manor, Inc. Project: | |
| 0.29%*, 5/1/2034, Bank of America NA (a) | 8,835,000 | 8,835,000 |
| 0.29%*, 5/1/2037, Bank of America NA (a) | 5,580,000 | 5,580,000 |
| 14,415,000 |
Pennsylvania 3.7% |
Adams County, PA, Industrial Development Authority Revenue, Brethren Home Community Project, 0.32%*, 6/1/2032, PNC Bank NA (a) | 7,525,000 | 7,525,000 |
Allegheny County, PA, RBC Municipal Products, Inc. Trust, Series E-11, 144A, 0.28%*, 12/1/2011, Royal Bank of Canada (a) | 10,000,000 | 10,000,000 |
Beaver County, PA, Industrial Development Authority, Pollution Control Revenue, FirstEnergy Nuclear Generation Corp., Series B, 0.22%*, 12/1/2035, Citibank NA (a) | 2,500,000 | 2,500,000 |
Bucks County, PA, Industrial Development Authority Revenue, Grand View Hospital: | |
| Series B, 0.19%*, 7/1/2039, PNC Bank NA (a) | 8,635,000 | 8,635,000 |
| Series A, 0.2%*, 7/1/2034, TD Bank NA (a) | 6,900,000 | 6,900,000 |
Butler County, PA, General Authority Revenue, New Castle Area School District, Series A, 0.2%*, 3/1/2029, PNC Bank NA (a) | 3,135,000 | 3,135,000 |
Cumberland County, PA, Municipal Authority Revenue, Asbury Pennsylvania Obligation Group, 0.22%*, 1/1/2043, KBC Bank NV (a) | 3,855,000 | 3,855,000 |
Dauphin County, PA, General Authority Revenue, Series 100G, 144A, 0.21%*, 1/1/2029 | 5,000,000 | 5,000,000 |
Lancaster, PA, Industrial Development Authority Revenue, Willow Valley Retirement, Series A, 0.19%*, 12/1/2039, PNC Bank NA (a) | 10,000,000 | 10,000,000 |
Monroe County, PA, Hospital Authority Revenue, Stars-Pocono Medical Center, Series B, 0.25%*, 1/1/2032, PNC Bank NA (a) | 7,045,000 | 7,045,000 |
Montgomery County, PA, Redevelopment Authority, Multi-Family Housing Revenue, Forge Gate Apartments Project, Series A, 0.19%*, 8/15/2031 | 1,510,000 | 1,510,000 |
Pennsylvania, BB&T Municipal Trust, Series 1, 0.27%*, 9/15/2015 | 8,535,000 | 8,535,000 |
Pennsylvania, Economic Development Financing Authority, Exempt Facilities Revenue: | |
| Series 1, 144A, 0.5%*, 12/1/2038, Wachovia Bank NA (a) | 10,000,000 | 10,000,000 |
| Series 1, 0.9%*, 12/1/2038, Wachovia Bank NA (a) | 12,500,000 | 12,500,000 |
Pennsylvania, Northeastern Hospital & Education Authority Revenue, Commonwealth Medical College Project, 0.19%*, 9/1/2034, PNC Bank NA (a) | 5,725,000 | 5,725,000 |
Pennsylvania, University of Pittsburgh, Commonwealth Systems of Higher Education, Panthers-Pitt Asset Notes, 144A, 5.0%, 8/1/2010 | 25,475,000 | 26,332,798 |
Philadelphia, PA, School District, Series C, 0.2%*, 6/1/2026, TD Bank NA (a) (b) | 6,200,000 | 6,200,000 |
Pittsburgh, PA, Water & Sewer Authority Systems Revenue, Series B2, 0.2%*, 9/1/2039, PNC Bank NA (a) | 9,000,000 | 9,000,000 |
Ridley, PA, School District, 0.23%*, 11/1/2029, TD Bank NA (a) | 2,920,000 | 2,920,000 |
| 147,317,798 |
Puerto Rico 0.1% |
Commonwealth of Puerto Rico, Special Obligation, Series 1211X, 0.21%*, 10/1/2018 | 2,700,000 | 2,700,000 |
Rhode Island 0.4% |
Rhode Island, Housing & Mortgage Finance Corp., Series R-11207, 144A, AMT, 0.28%*, 10/1/2032 | 9,610,000 | 9,610,000 |
Rhode Island, Single Family Housing, Series 2008-1110, 144A, AMT, 0.41%*, 10/1/2032 | 5,250,000 | 5,250,000 |
| 14,860,000 |
South Carolina 0.8% |
Greenwood County, SC, Exempt Facility Industrial Revenue, Fuji Photo Film Project, AMT, 0.36%*, 9/1/2011 | 10,300,000 | 10,300,000 |
Lexington County, SC, School District No. 001, Series B, 1.0%, 3/1/2010 (c) | 8,000,000 | 8,016,960 |
South Carolina, BB&T Municipal Trust, Series 1013, 144A, 0.33%*, 1/1/2020, Branch Banking & Trust (a) | 6,460,000 | 6,460,000 |
South Carolina, Jobs Economic Development Authority Revenue, Goodwill Industries of Upper South Carolina, Inc. Project, 0.26%*, 9/1/2028, Branch Banking & Trust (a) | 6,175,000 | 6,175,000 |
| 30,951,960 |
South Dakota 1.1% |
South Dakota, Conservancy District Revenue, State Revolving Fund Program, 0.7%*, 8/1/2029 | 35,000,000 | 35,000,000 |
South Dakota, Economic Development Finance Authority, Industrial Development Revenue, Wilson Trailer Project, 144A, AMT, 0.31%*, 2/1/2028, First American Bank (a) | 9,000,000 | 9,000,000 |
| 44,000,000 |
Tennessee 1.7% |
Blount County, TN, Public Building Authority, Local Government Public Improvement: | |
| Series C-3-A, 0.26%*, 6/1/2029 | 10,000,000 | 10,000,000 |
| Series E-5-A, 0.26%*, 6/1/2030, Branch Banking & Trust (a) | 41,945,000 | 41,945,000 |
Dickson, TN, Redstone Partners Floaters/Residuals Trust, Series B, AMT, 0.46%*, 12/1/2047, Wachovia Bank NA (a) | 3,120,000 | 3,120,000 |
Montgomery County, TN, Public Building Authority, Pooled Financing Revenue, Tennessee County Loan Pool, 0.26%*, 11/1/2027, Bank of America NA (a) | 4,030,000 | 4,030,000 |
Selmer/McNairy County, TN, Industrial Development Board Revenue, United Stainless, Inc., AMT, 0.4%*, 12/1/2023, Bank of America NA (a) | 8,500,000 | 8,500,000 |
| 67,595,000 |
Texas 16.9% |
Atascosa County, TX, Industrial Development Corp., Pollution Control Revenue, San Miguel Electric Cooperative, Inc., 1.09%*, 6/30/2020 | 44,200,000 | 44,200,000 |
Austin, TX, Hotel Occupancy Tax Revenue, Series A, 0.26%*, 11/15/2029, Dexia Credit Local (a) | 15,020,000 | 15,020,000 |
Dallas, TX, Independent School Building District, 5.0%, 2/15/2010 | 12,980,000 | 13,145,028 |
East Texas, Housing Finance, Redstone Partners Floaters/Residuals Trust, Series D, 144A, AMT, 0.46%*, 12/1/2047, Wachovia Bank NA (a) | 7,945,000 | 7,945,000 |
Harris County, TX, Cultural Education Facilities Finance Corp. Revenue, Memorial Hermann Healthcare System, Series D-3, 0.55%*, 6/1/2029, Compass Bank (a) | 4,625,000 | 4,625,000 |
Harris County, TX, Cultural Education Facilities Finance Corp., Special Facilities Revenue, Texas Medical Center, Series B-2, 0.55%*, 9/1/2031, Compass Bank (a) | 4,100,000 | 4,100,000 |
Harris County, TX, Metropolitan Transit Authority, 0.38%, 12/3/2009 | 13,250,000 | 13,250,000 |
Harris County, TX, Tax Anticipation Notes: |
| 1.5%, 2/25/2010 | 110,000,000 | 110,395,873 |
| 2.0%, 2/25/2010 | 10,000,000 | 10,052,292 |
Houston, TX, Housing Finance Corp., Series 2110, 144A, AMT, 0.28%*, 12/1/2040 | 4,515,000 | 4,515,000 |
Houston, TX, Utility Systems Revenue, Series B1, 0.2%*, 5/15/2034, Bank of America NA, Bank of New York Mellon Corp., Dexia Credit Local and State Street Bank & Trust Co. (a) | 6,700,000 | 6,700,000 |
Houston, TX, Water & Sewer System Revenue, Series 27TPZ, 144A, 0.26%*, 12/1/2028 (b) | 14,100,000 | 14,100,000 |
Katy, TX, Independent School Building District, 0.2%*, 8/15/2033 | 8,700,000 | 8,700,000 |
Leander, TX, Independent School District, Series R-11662, 144A, 0.21%*, 8/15/2015 | 3,750,000 | 3,750,000 |
North Texas, Higher Education Authority, Inc., Student Loan Revenue, Series A, AMT, 0.35%*, 12/1/2038, Lloyds TSB Bank PLC (a) | 2,600,000 | 2,600,000 |
Tarrant County, TX, Cultural Education Facilities Finance Corp. Revenue, Christus Health, Series C-5, 0.35%*, 7/1/2031, Compass Bank (a) | 10,000,000 | 10,000,000 |
Tarrant County, TX, Cultural Education Facilities Finance Corp., Retirement Facilities, Northwest Senior Edgemere Project, Series B, 144A, 0.22%*, 11/15/2036, LaSalle Bank NA (a) | 9,505,000 | 9,505,000 |
Texas, A&M University Revenues, Financing Systems, Series C, 2.0%, 5/15/2010 (c) | 6,620,000 | 6,676,005 |
Texas, BB&T Municipal Trust, Series 2008-57, 144A, 0.21%*, 12/1/2019, Branch Banking & Trust (a) (b) | 18,145,000 | 18,145,000 |
Texas, Capital Area Housing Finance Corp., Cypress Creek at River Apartments, AMT, 0.3%*, 10/1/2039, Citibank NA (a) | 11,000,000 | 11,000,000 |
Texas, Department of Housing, Series 2008-3022X, 144A, AMT, 0.41%*, 9/1/2032 | 6,600,000 | 6,600,000 |
Texas, North East Independent School District, "A", 144A, 0.21%*, 8/1/2037 | 8,935,000 | 8,935,000 |
Texas, Northside Independent School District, School Building, 1.2%*, Mandatory Put 6/1/2010 @ 100, 6/1/2037 | 28,260,000 | 28,260,000 |
Texas, RBC Municipal Products, Inc. Trust, Series L-46, 144A, AMT, 0.35%*, 12/1/2034, Royal Bank of Canada (a) | 52,995,000 | 52,995,000 |
Texas, State Department of Housing & Community Affairs, Multi-Family Housing Revenue, Series 2108, 144A, AMT, 0.28%*, 6/20/2047 | 3,375,000 | 3,375,000 |
Texas, State Tax & Revenue Anticipation Notes, 2.5%, 8/31/2010 | 111,000,000 | 112,876,095 |
Texas, State Transportation Commission Revenue, First Tier, Series A, 5.0%, 4/1/2010 | 5,000,000 | 5,090,001 |
Texas, State Veteran Housing Assistance Fund II, Series A, AMT, 0.26%*, 12/1/2038 | 17,590,000 | 17,590,000 |
Texas, University of Houston, Series 2008-3315, 144A, 0.31%*, 2/15/2033 (b) | 9,335,000 | 9,335,000 |
Texas, University of Houston, Tax Exempt Revenues, 0.47%, 1/7/2010 | 7,100,000 | 7,100,000 |
Texas, University of Texas Systems Revenue: |
| Series A, 0.22%, 11/16/2009 | 20,000,000 | 20,000,000 |
| Series F, 0.3%, 12/7/2009 | 20,000,000 | 20,000,000 |
| Series A, 0.3%, 1/7/2010 | 19,500,000 | 19,500,000 |
Travis County, TX, Health Facilities Development Corp., Retirement Facilities Revenue, Longhorn Village Project, Series B, 0.25%*, 7/1/2037, Bank of Scotland (a) | 10,500,000 | 10,500,000 |
Tyler, TX, Independent School District, School Building, Series A, 0.5%*, 2/15/2025 | 22,000,000 | 22,000,000 |
Weslaco, TX, Health Facilities Development, Knapp Medical Center, Series A, 0.75%*, 6/1/2038, Compass Bank (a) | 4,775,000 | 4,775,000 |
| 667,355,294 |
Utah 2.2% |
Utah, Housing Corp., Series 2008-3300, 144A, AMT, 0.41%*, 1/1/2039 | 5,000,000 | 5,000,000 |
Utah, Housing Corp., Single Family Mortgage Revenue: |
| Series 3, 0.5%*, Mandatory Put 12/18/2009 @ 100, 7/1/2040 | 8,000,000 | 8,000,000 |
| Series 4, AMT, 0.6%*, Mandatory Put 12/18/2009 @ 100, 7/1/2035 | 3,250,000 | 3,250,000 |
Utah, Transportation Authority Revenue, Series 2008-3045X, 144A, 0.31%*, 6/15/2036 (b) | 2,500,000 | 2,500,000 |
Utah, Water Finance Agency Revenue, Series B-3, 0.29%*, 7/1/2036 | 38,800,000 | 38,800,000 |
Utah, Water Finance Agency Revenue, Series B-1, 0.29%*, 10/1/2037 | 28,565,000 | 28,565,000 |
| 86,115,000 |
Virginia 2.8% |
Norfolk, VA, Bond Anticipation Notes, Series C, 1.25%, 3/1/2010 | 44,710,000 | 44,835,062 |
Norfolk, VA, State General Obligation, 0.2%*, 8/1/2037 | 11,640,000 | 11,640,000 |
Virginia, College Building Authority, Educational Facilities Revenue, University of Richmond: | |
| Series A, 0.8%*, Mandatory Put 3/1/2010 @ 100, 2/26/2039 | 10,500,000 | 10,500,000 |
| Series B, 0.8%*, Mandatory Put 2/1/2010 @ 100, 2/26/2039 | 4,000,000 | 4,000,000 |
Virginia, RBC Municipal Products, Inc. Trust: |
| Series C-2, 144A, AMT, 0.38%*, 1/1/2014, Royal Bank of Canada (a) | 9,455,000 | 9,455,000 |
| Series C-8, 144A, AMT, 0.38%*, 9/1/2039, Royal Bank of Canada (a) | 25,665,000 | 25,665,000 |
Winchester, VA, Industrial Development Authority, Residential Care Facility Revenue, Westminster Cantenbury, Series B, 0.26%*, 1/1/2035, Branch Banking & Trust (a) | 2,900,000 | 2,900,000 |
| 108,995,062 |
Washington 1.2% |
Seattle, WA, Water Systems Revenue, Series 2170, 144A, 0.21%*, 2/1/2031 (b) | 2,530,000 | 2,530,000 |
Washington, State Economic Development Finance Authority, Solid Waste Disposal Revenue, Waste Management, Inc. Project, Series D, AMT, 0.3%*, 7/1/2030, JPMorgan Chase Bank (a) | 8,000,000 | 8,000,000 |
Washington, State General Obligation: |
| Series 2599, 144A, 0.2%*, 1/1/2016 | 4,505,000 | 4,505,000 |
| Series 3087, 144A, 0.2%*, 7/1/2016 | 5,055,000 | 5,055,000 |
| Series R-11477, 0.21%*, 7/1/2014 (b) | 5,445,000 | 5,445,000 |
Washington, State Higher Education Facilities Authority Revenue, Seattle University Project, Series A, 0.24%*, 5/1/2028, US Bank NA (a) | 9,255,000 | 9,255,000 |
Washington, State Housing Finance Commission, Multi-Family Housing Revenue, Vintage Silverdale, Series A, AMT, 0.3%*, 9/15/2039 | 4,000,000 | 4,000,000 |
Washington, Wells Fargo Stage Trust, Series 21C, 144A, 0.2%*, 12/1/2037 | 10,400,000 | 10,400,000 |
| 49,190,000 |
West Virginia 0.7% |
West Virginia, Public Energy Authority Revenue, Morgantown Associates Project, AMT, 1.55%*, 7/1/2017, Dexia Credit Local (a) | 15,000,000 | 15,000,000 |
West Virginia, State Hospital Finance Authority Revenue, Cabell Huntington Hospital, Series A, 0.23%*, 1/1/2034, Branch Banking & Trust (a) | 13,480,000 | 13,480,000 |
| 28,480,000 |
Wisconsin 5.6% |
Appleton, WI, Redevelopment Authority Revenue, Fox Cities Performing Arts Center, Inc., Series B, 0.3%*, 6/1/2036, JPMorgan Chase Bank (a) | 18,400,000 | 18,400,000 |
Ladysmith, WI, Industrial Development Revenue, Indeck Ladysmith LLC Project, Series A, 0.27%*, 8/1/2027, Wells Fargo Bank NA (a) | 10,000,000 | 10,000,000 |
Milwaukee, WI, General Obligation: |
| Series V8, 0.26%*, 2/1/2025 | 2,700,000 | 2,700,000 |
| Series 2009-R3, 1.25%, 12/17/2009 | 50,000,000 | 50,050,746 |
| Series 2009-R3, 1.5%, 12/17/2009 | 66,000,000 | 66,086,863 |
Plymouth, WI, Industrial Development Revenue, Masters Gallery Foods, Series A, AMT, 0.37%*, 5/1/2038, Wells Fargo Bank NA (a) | 5,300,000 | 5,300,000 |
Racine, WI, Solid Waste Disposal Revenue, Republic Services Project, 0.3%*, 11/1/2037, JPMorgan Chase Bank (a) | 5,000,000 | 5,000,000 |
University of Wisconsin, Hospitals & Clinics Authority Revenue, Series A, 0.2%*, 4/1/2032, US Bank NA (a) | 4,870,000 | 4,870,000 |
Whitewater, WI, Industrial Development Revenue, MacLean-Fogg Co. Project, AMT, 0.4%*, 12/1/2009, Bank of America NA (a) | 3,000,000 | 3,000,000 |
Wisconsin, Clipper Tax-Exempt Certificates Trust, Certificate of Participation, Series 2009-36, 144A, 0.31%*, 5/1/2020 | 6,755,000 | 6,755,000 |
Wisconsin, State Operating Notes, 2.5%, 6/15/2010 | 50,000,000 | 50,620,367 |
| 222,782,976 |
Wyoming 1.4% |
Platte County, WY, Pollution Control Revenue, Tri-State Generation & Transmission Association, Inc., Series A, 0.7%*, 7/1/2014, National Rural Utilities Cooperative Finance Corp. (a) | 1,100,000 | 1,100,000 |
Sweetwater County, WY, Pollution Control Revenue, 0.35%, 11/5/2009 | 13,175,000 | 13,175,000 |
Wyoming, Student Loan Corp. Revenue, Series A-3, AMT, 0.29%*, 12/1/2043, Royal Bank of Canada (a) | 40,000,000 | 40,000,000 |
| 54,275,000 |
Cash Account Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment management company organized as a Massachusetts business trust.
The Trust offers three portfolios: Money Market Portfolio, Government & Agency Securities Portfolio and Tax-Exempt Portfolio (the "Portfolios"). The financial statements of Government & Agency Securities Portfolio and Money Market Portfolio are presented in separate annual reports.
Tax-Exempt Portfolio (the "Portfolio") offers nine classes of shares: Capital Assets Funds Shares, Davidson Cash Equivalent Shares, DWS Tax-Exempt Cash Institutional Shares, DWS Tax-Exempt Money Fund, DWS Tax-Free Money Fund Class S, Premier Money Market Shares, Service Shares, Tax-Exempt Cash Managed Shares and Tax-Free Investment Class.
The financial highlights for all classes of shares, other than Tax-Free Investment Class, are provided separately and are available upon request.
The Portfolio's investment income, realized and unrealized gains and losses, and certain Portfolio-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares of that Portfolio, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Trust have equal rights with respect to voting subject to class-specific arrangements.
The Portfolio's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Portfolio in the preparation of its financial statements.
The Portfolio has reviewed the tax positions for the open tax years as of April 30, 2009 and has determined that no provision for income tax is required in the Portfolio's financial statements. The Portfolio's federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period. There were no significant book-to-tax differences for the Portfolio.
The tax character of current year distributions will be determined at the end of the current fiscal year.
In addition, the Portfolio pays a monthly management fee based on the combined average daily net assets of the Portfolios and allocated to each Portfolio based on relative net assets, computed and accrued daily and payable monthly, at the following annual rates:
Accordingly, for the six months ended October 31, 2009, the Portfolio incurred a management fee equivalent to the following annualized effective rate of the Portfolio's average daily net assets:
For the period from May 1, 2009 through March 18, 2010, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the Tax-Free Investment Class to the extent necessary to maintain the operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) at 0.72%.
The Advisor also has agreed to maintain expenses of certain other classes of the Trust. These rates are disclosed in the respective share classes' semiannual reports that are provided separately and are available upon request.
In addition, the Advisor has agreed to voluntarily waive additional expenses. The waiver may be changed or terminated at any time without notice. Under these arrangements, the Advisor waived certain expenses on Tax Free Investment Class Shares.
In addition, DIDI provides information and administrative services for a fee ("Service Fee") for the shares listed in the following table. A portion of these fees may be paid pursuant to a Rule 12b-1 plan.
The Portfolio and other affiliated funds (the "Participants") share in a $450 million revolving credit facility provided by a syndication of banks. The Portfolio may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated based on net assets, among each of the Participants. Interest is calculated at a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if LIBOR exceeds the Federal Funds Rate the amount of such excess. The Portfolio may borrow up to a maximum of 33 percent of its net assets under the agreement.
The Portfolio participated in the Temporary Guarantee Program for Money Market Funds (the "Program") established by the U.S. Department of the Treasury (the "Treasury"). The Program was teminated on September 18, 2009.
The Portfolio paid the expenses of participating in the Program. The expense was determined by the product of (i) the number of shares outstanding of each class as of September 19, 2008 valued at $1.00; and (ii) the applicable Program participation fee rate, which was based upon the market-based net asset value outstanding of each share class as of September 19, 2008. For the initial period ending December 18, 2008, the Program participation fee was equal to 0.010%. For the coverage under the Program beginning on December 19, 2008 and ending on April 30, 2009, the Program participation fee was equal to 0.015%. For the coverage under the Program beginning on May 1, 2009 and ending September 18, 2009, the Program participation fee was equal to 0.015%. This expense was being amortized over the length of the participation in the Program and is included in "Temporary guarantee program participation fee" on the Statement of Operations. For the period from May 1, 2009 through September 18, 2009, the Portfolio accrued $610,785. This expense was born by the Portfolio without regard to any expense limitation currently in effect for the Portfolio.
Neither the Portfolio nor Deutsche Investment Management Americas Inc., the Portfolio's investment advisor, are in any manner approved, endorsed, sponsored or authorized by the Treasury.
Management has reviewed the events and transactions from November 1, 2009 through December 22, 2009, the date the financial statements were available to be issued for subsequent events and has determined that there were no material events that would require disclosure in the Portfolio's financial statements through this date.
The Board of Trustees, including the Independent Trustees, approved the renewal of your Fund's investment management agreement (the "Agreement") with Deutsche Investment Management Americas Inc. ("DWS") in September 2009.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DWS and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DWS managed the Fund, and that the Agreement was approved by the Fund's shareholders. DWS is part of Deutsche Bank, a major global banking institution that is engaged in a wide range of financial services. The Board believes that there are significant advantages to being part of a global asset management business that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts with research capabilities in many countries throughout the world.
While shareholders may focus primarily on fund performance and fees, the Fund's Board considers these and many other factors, including the quality and integrity of DWS's personnel and such other issues as back-office operations, fund valuations and compliance policies and procedures.
On the basis of this evaluation and the ongoing review of investment results by the Board, the Board concluded that the nature, quality and extent of services provided by DWS historically have been and continue to be satisfactory.
The information considered by the Board as part of their review of management fees included information regarding fees charged by DWS and its affiliates to similar institutional accounts and to similar funds managed by the same portfolio management teams but offered primarily to European investors ("DWS Europe funds"), in each case as applicable. The Board observed that advisory fee rates for institutional accounts generally were lower than the management fees charged by similarly managed DWS US Mutual Funds ("DWS Funds"), but also took note of the differences in services provided to DWS Funds as compared to institutional accounts. In the case of DWS Europe funds, the Board observed that fee rates for DWS Europe funds generally were higher than for similarly managed DWS Funds, but noted that differences in the types of services provided to DWS Funds relative to DWS Europe funds made it difficult to compare such fees.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DWS.
Based on all of the information considered and the conclusions reached, the Board unanimously (including the Independent Trustees) determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and their counsel present. It is possible that individual Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.
Pursuant to an Order entered into by Deutsche Investment Management Americas and affiliates (collectively, "DeAM") with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee Consultant for the DWS Funds (formerly the DWS Scudder Funds). My duties include preparing an annual written evaluation of the management fees DeAM charges the Funds, considering among other factors the management fees charged by other mutual fund companies for like services, management fees DeAM charges other clients for like services, DeAM's costs of supplying services under the management agreements and related profit margins, possible economies of scale if a Fund grows larger, and the nature and quality of DeAM's services, including fund performance. This report summarizes my evaluation for 2009, including my qualifications, the evaluation process for each of the DWS Funds, consideration of certain complex-level factors, and my conclusions. I served in substantially the same capacity in 2007 and 2008.
For more than 35 years I have served in various professional capacities within the investment management business. I have held investment analysis and advisory positions, including securities analyst, portfolio strategist and director of investment policy with a large investment firm. I have also performed business management functions, including business development, financial management and marketing research and analysis.
Since 1991, I have been an independent consultant within the asset management industry. I have provided services to over 125 client organizations, including investment managers, mutual fund boards, product distributors and related organizations. Over the past ten years I have completed a number of assignments for mutual fund boards, specifically including assisting boards with management contract renewal.
I hold a Master of Business Administration degree, with highest honors, from Harvard University and Master of Science and Bachelor of Science (highest honors) degrees from the University of California at Berkeley. I am an independent director and audit committee financial expert for two closed-end mutual funds and serve in various leadership and financial oversight capacities with non-profit organizations.
My work focused primarily on evaluating, fund-by-fund, the fees charged to each of the 124 publicly offered Fund portfolios in the DWS Fund family. For each Fund, I considered each of the key factors mentioned above, as well as any other relevant information. In doing so I worked closely with the Funds' Independent Directors in their annual contract renewal process, as well as in their approval of contracts for several new funds (documented separately).
In evaluating each Fund's fees, I reviewed comprehensive materials provided by or on behalf of DeAM, including expense information prepared by Lipper Analytical, comparative performance information, profitability data, manager histories, and other materials. I also accessed certain additional information from the Lipper, Strategic Insight, and Morningstar databases and drew on my industry knowledge and experience.
To facilitate evaluating this considerable body of information, I prepared for each Fund a document summarizing the key data elements in each area as well as additional analytics discussed below. This made it possible to consider each key data element in the context of the others.
In the course of contract renewal, DeAM agreed to implement a number of fee and expense adjustments requested by the Independent Directors which will favorably impact future fees and expenses, and my evaluation includes the effects of these changes.
The competitive fee and expense evaluation for each fund focused on two primary comparisons:
The Fund's contractual management fee (the advisory fee plus the administration fee where applicable) compared with those of a group of typically 12-15 funds in the same Lipper investment category (e.g. Large Capitalization Growth) having similar distribution arrangements and being of similar size.
The Fund's total expenses compared with a broader universe of funds from the same Lipper investment category and having similar distribution arrangements.
These two comparisons provide a view of not only the level of the fee compared with funds of similar scale but also the total expense the Fund bears for all the services it receives, in comparison with the investment choices available in the Fund's investment category and distribution channel. The principal figure-of-merit used in these comparisons was the subject Fund's percentile ranking against peers.
DeAM provided management fee schedules for all of its US domiciled fund and non-fund investment management accounts in any of the investment categories where there is a DWS Fund. These similar products included the other DWS Funds, non-fund pooled accounts, institutional accounts and sub-advisory accounts. Using this information, I calculated for each Fund the fee that would be charged to each similar product, at the subject Fund's asset level.
Evaluating information regarding non-fund products is difficult because there are varying levels of services required for different types of accounts, with mutual funds generally requiring considerably more regulatory and administrative types of service as well as having more frequent cash flows than other types of accounts. Also, while mutual fund fees for similar fund products can be expected to be similar, there will be some differences due to different pricing conditions in different distribution channels (e.g. retail funds versus those used in variable insurance products), differences in underlying investment processes and other factors.
DeAM provided a detailed profitability analysis for each Fund. After making some adjustments so that the presentation would be more comparable to the available industry figures, I reviewed profit margins from investment management alone, from investment management plus other fund services (excluding distribution) provided to the Funds by DeAM (principally shareholder services), and DeAM profits from all sources, including distribution. A later section comments on overall profitability.
Economies of scale — an expected decline in management cost per dollar of fund assets as fund assets grow — are very rarely quantified and documented because of inherent difficulties in collecting and analyzing relevant data. However, in virtually every investment category that I reviewed, larger funds tend to have lower fees and lower total expenses than smaller funds. To see how each DWS Fund compares with this industry observation, I reviewed:
The trend in Fund assets over the last five years and the accompanying trend in total expenses. This shows if the Fund has grown and, if so, whether total expense (management fees as well as other expenses) have declined as a percent of assets.
Whether the Fund has break-points in its management fee schedule, the extent of the fee reduction built into the schedule and the asset levels where the breaks take effect, and in the case of a sub-advised Fund how the Fund's break-points compare with those of the sub-advisory fee schedule.
How the Fund's contractual fee schedule compares with trends in the industry data. To accomplish this, I constructed a chart showing how actual latest-fiscal-year contractual fees of the Fund and of other similar funds relate to average fund assets, with the subject Fund's contractual fee schedule superimposed.
The quality-of-service evaluation focused on investment performance, which is the principal result of the investment management service. Each Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as applicable, and compared with that of other funds in the same investment category and with a suitable market index.
In addition, I calculated and reviewed risk-adjusted returns relative to an index of similar mutual funds' returns and a suitable market index. The risk-adjusted returns analysis provides a way of determining the extent to which the Fund's return comparisons are mainly the product of investment value-added (or lack thereof) or alternatively taking considerably more or less risk than is typical in its investment category.
I also received and considered the history of portfolio manager changes for each Fund, as this provided an important context for evaluating the performance results.
While this evaluation was conducted mainly at the individual fund level, there are some issues relating to the reasonableness of fees that can alternatively be considered across the whole fund complex:
I reviewed DeAM's profitability analysis for all DWS Funds, with a view toward determining if the allocation procedures used were reasonable and how profit levels compared with public data for other investment managers.
I considered whether DeAM and affiliates receive any significant ancillary or "fall-out" benefits that should be considered in interpreting the direct profitability results. These would be situations where serving as the investment manager of the Funds is beneficial to another part of the Deutsche Bank organization.
I considered how aggregated DWS Fund expenses had varied over the years, by asset class and in the context of trends in asset levels.
I reviewed the structure of the DeAM organization, trends in staffing levels, and information on compensation of investment management and other professionals compared with industry data.
Based on the process and analysis discussed above, which included reviewing a wide range of information from management and external data sources and considering among other factors the fees DeAM charges other clients, the fees charged by other fund managers, DeAM's costs and profits associated with managing the Funds, economies of scale, possible fall-out benefits, and the nature and quality of services provided, in my opinion the management fees charged the DWS Funds are reasonable.
Your confidence is important to us. So we want to make sure you know our policies regarding the handling of our clients' private information. The following information is issued by DWS Investments Distributors, Inc., Deutsche Investment Management Americas Inc., DeAM Investor Services, Inc., DWS Trust Company and the DWS Funds.
In the normal course of business, clients give us nonpublic personal information on applications and other forms, on our Web sites, and through transactions with us or our affiliates. Examples of the nonpublic personal information collected are name, address, Social Security number, and transaction and balance information. To be able to serve our clients, certain of this client information is shared with affiliated and nonaffiliated third-party service providers such as transfer agents, custodians and broker-dealers to assist us in processing transactions and servicing your account.
In addition, we may disclose the information we collect to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements. These organizations may only use client information for the purpose designated by the companies listed above. Additional requirements beyond federal law may be imposed by certain states. To the extent that these state laws apply, we will comply with them before we share information about you.
We may also disclose nonpublic personal information about you to other parties as required or permitted by law. For example, we are required to or may provide information to government entities or regulatory bodies in response to requests for information or subpoenas, to private litigants in certain circumstances, to law enforcement authorities, or any time we believe it necessary to protect the firm.
