Limited Term Tax Exempt Bond Fund Of America NCSRS Certified semi-annual shareholder report (management investment company)

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: 811-07888

Limited Term Tax-Exempt Bond Fund of America

(Exact name of registrant as specified in charter)

333 South Hope Street

Los Angeles, California 90071

(Address of principal executive offices)

Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: July 31

Date of reporting period: January 31, 2007

Kimberly S. Verdick

Capital Research and Management Company

333 South Hope Street

Los Angeles, California 90071

(Name and address of agent for service)

Copies to:

Michael Glazer

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street

Los Angeles, California 90071

(Counsel for the registrant)

ITEM 1 - Reports to Stockholders

[logo - American Funds^®]

The right choice for the long term^®

Limited Term Tax-Exempt Bond Fund of America

[photo - gravel path winding through flower garden]

Semi-annual report for the six months ended January 31, 2007

Limited Term Tax-Exempt Bond Fund of America^SM seeks current income exempt from federal income taxes, consistent with preservation of capital, by investing primarily in investment-grade municipal bonds. The average effective maturity of the fund’s portfolio is between three and 10 years.

This fund is one of the 30 American Funds. The organization ranks among the nation’s three largest mutual fund families. For 75 years, Capital Research and Management Company,^SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. For current information and month-end results, visit americanfunds.com. Fund results shown, unless otherwise indicated, are at net asset value. If a sales charge (maximum 2.50%) had been deducted, the results would have been lower.

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended December 31, 2006 (the most recent calendar quarter):

	1 year		5 years		10 years
Class A shares
Reflecting 2.50% maximum sales charge*	+1.02	%	+3.46	%	+4.20	%

*The maximum initial sales charge was 3.75% prior to November 1, 2006.

The total annual fund operating expense ratio was 0.66% for Class A shares as of the most recent fiscal year-end. This figure does not reflect a fee waiver that currently is in effect and which causes the actual expense ratio to be lower.

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased it to 10% on April 1, 2005. Fund results shown reflect actual expenses, with the waiver applied. Fund results would have been lower without the waiver. Please see the Financial Highlights table on pages 20 and 21 for details.

Results for other share classes can be found on page 4. Please see the inside back cover for important information about other share classes.

The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund. Income may be subject to state or local income taxes and/or federal alternative minimum taxes. Certain other income, as well as capital gain distributions, may be taxable. Please consult with your tax adviser.

Fellow shareholders:

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High-grade municipal bond prices rose during the first half of the current fiscal year, which helped lift returns for our shareholders. For the six months ended January 31, 2007, Limited Term Tax-Exempt Bond Fund of America produced a total return of 2.1%.

Most of this return came from the monthly dividends paid by the fund, which totaled about 26 cents a share for the reporting period. This represents an income return of 1.74% (3.48% annualized) for those who took dividends in cash. Those who reinvested dividends recorded an income return of 1.75% (3.50% annualized), which is equivalent to a taxable return of 2.69% (5.38% annualized) for those in the top federal tax bracket. In addition to income, the fund’s total return benefited from a modest increase in the fund’s share price.

For the same period, the Lehman Brothers (7-Year) Municipal Bond Index, which serves as a proxy for the market in which the fund invests, returned 2.3%. Importantly, the Lehman index is unmanaged and its return does not include expenses. In comparison, the Lipper Intermediate Municipal Debt Funds Average, a peer group measure, recorded a gain of 2.2%.

[Begin Sidebar]

Results at a glance

Annualized total returns for periods ended January 31, 2007, with dividends reinvested

1 year

5 years

10 years

Lifetime*

Limited Term Tax-Exempt

Bond Fund of America

+3.16

+3.70

+4.41

+4.60

Lehman Brothers (7-Year)

Municipal Bond Index^†

+3.36

+4.42

+5.14

+5.11

Lipper Intermediate Municipal

Debt Funds Average

+2.99

+3.73

+4.51

+4.53

*Since 10/6/93.

^† The index is unmanaged and does not reflect sales charges, commissions or expenses, and holds bonds with a longer average maturity than the fund.

[End Sidebar]

Bond market overview

The fund’s fiscal year began in a current of positive momentum for the broader bond market. After two years of consistent rate increases, the Federal Reserve left its federal funds rate unchanged at 5.25% at its August 2006 meeting. Importantly, for the markets, this key short-term rate remained unchanged throughout the reporting period.

The absence of Fed rate actions ushered in a relief rally for the bond market that lasted until early December. During that time, bond market yields generally trended lower, lifting bond prices. (A bond’s price moves inversely to its yield.) By early December, however, evidence of continued strength in the U.S. economy doused investor hopes for a Fed rate cut in 2007. This shift in expectations weighed on the market and dampened bond prices during the final two months of the period, but did not fully erase earlier gains.

In the municipal market, long-term bonds produced the best returns for the period, followed by intermediate bonds, then short-term bonds. With respect to credit quality, lower rated bonds generally recorded higher returns than did high-quality bonds. What drove returns was continued strong demand for yield, whether from lower rated bonds or longer maturities. This appetite helped the municipal market digest a record volume of new issuance in December and January.

How the fund responded

Recent trends in the market have created a historically flat municipal yield curve. This means that the difference in yields between short-term and long-term bonds has become quite narrow. Within the intermediate market, yields compressed to only a quarter-point (approximately) difference between three-year and 10-year bonds of AAA credit quality — a significant tightening. A year ago, that same differential was more than twice that amount. Similarly, the yield difference between bonds of the same maturity, but differing credit quality, has also tightened significantly.

This substantial narrowing poses concerns for conservative long-term investors. While there is less room for yield differentials to compress further, there remains the possibility that a shock to the market could raise yields and widen differentials causing bond prices to fall. In our estimation, the bonds most vulnerable are those that posted the best returns recently, namely long-term and lower rated issues.

With this in mind, the fund’s portfolio counselors have continued to employ a conservative investment strategy. Over the past six months, they have lowered the fund’s exposure to BBB-rated bonds (the lowest investment-grade category), as demand for these securities rose. They have also increased the fund’s exposure to AAA-rated bonds (the highest credit quality), which are more likely to retain value under adverse market conditions. At the same time, fund counselors have maintained a relatively shorter portfolio structure than its peer group average, emphasizing shorter term debt and bonds with low volatility characteristics. These actions may have the effect of limiting gains if municipal yields continue to decline over the near term. On the other hand, we believe this protective stance can help buffer the portfolio should market yields rise and yield differentials expand from current tight levels.

A prudent long-term approach

The portfolio counselors of Limited Term Tax-Exempt Bond Fund of America fully understand that managing for risk is vital to preserving principal and the income that is so important to shareholders. Indeed, capital preservation is one of the fund’s stated objectives. When combined with a focus on investment-grade bonds and a limited effective maturity for the portfolio, these objectives serve to create a municipal fund that is well-suited to conservative investors. In light of these objectives, we believe that our cautious approach is the best choice for our shareholders at this time.

As always, we are mindful of the important role that Limited Term Tax-Exempt Bond Fund of America plays in your financial future. We thank you for your trust and look forward to reporting to you again in six months.

Cordially,

/s/ Paul G. Haaga, Jr.

Paul G. Haaga, Jr.

Vice Chairman

/s/ Brenda S. Ellerin

Brenda S. Ellerin

President

March 16, 2007

For current information about the fund, visit americanfunds.com.

The fund’s 30-day yield for Class A shares as of February 28, 2007, calculated in accordance with the Securities and Exchange Commission formula, was 3.34% (3.31% without the fee waiver). (For investors in the 35% tax bracket, this is equivalent to a taxable yield of 5.14% — 5.09% without the fee waiver.) The fund’s distribution rate for Class A shares as of that date was 3.48% (3.45% without the fee waiver). Both reflect the 2.50% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.

Other share class results

Class B, Class C and Class F

Figures shown are past results and are not predictive of results in future periods. Current

and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

Average annual total returns for periods ended					Life
December 31, 2006 (the most recent calendar quarter):	1 year		5 years		of class

Class B shares— first sold 3/15/00
Reflecting applicable contingent deferred sales
charge (CDSC), maximum of 5%, payable only if
shares are sold within six years of purchase	-2.10	%	+2.91	%	+3.97	%
Not reflecting CDSC	+2.90	%	+3.27	%	+3.97	%

Class C shares— first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase	+1.83	%	+3.16	%	+3.07	%
Not reflecting CDSC	+2.83	%	+3.16	%	+3.07	%

Class F shares*— first sold 3/15/01
Not reflecting annual asset-based fee charged
by sponsoring firm	+3.61	%	+3.92	%	+3.81	%

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased it to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 20 and 21 for details that include expense ratios for all share classes.

*These shares are sold without any initial or contingent deferred sales charge.

Tax-free yields vs. taxable yields

Find your estimated taxable income below to determine your federal tax rate,* then look in the right-hand column to see what you would have had to earn from a taxable investment to equal the fund’s 3.35% tax-free distribution rate as of January 31, 2007.

If your taxable income is ...
Single	Joint	Then your federal tax rate* is ...	The fund’s distribution rate^† equals a taxable rate of …

$ 0 - 7,550	$ 0 - 15,100	10.0%	3.72%
7,551 - 30,650	15,101 - 61,300	15.0	3.94
30,651 - 74,200	61,301 - 123,700	25.0	4.47
74,201 - 154,800	123,701 - 188,450	28.0	4.65
154,801 - 336,550	188,451 - 336,550	33.0	5.00
Over 336,550	Over 336,550	35.0	5.15

*Based on 2006 federal tax rates. The federal rates do not include an adjustment for the loss of personal exemptions and the phase-out of itemized deductions that are applicable to certain taxable income levels.

^†Distribution rate based on the average offering price for the month of January.

Summary investment portfolio, January 31, 2007

unaudited

The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings. For details on how to obtain a complete schedule of portfolio holdings, please see the inside back cover.

[begin pie chart]

Quality ratings*

Aaa/AAA	37.3	%
Aa/AA	26.5
A/A	15.3
Baa/BBB	16.8
Ba/BB	0.2
Short-term securities & other assets less liabilities	3.9

*Bond ratings reflect those of a credit rating agency; if ratings are not available, they are assigned by the fund's investment analysts.

[end pie chart]

		Principal			Market		Percent
		amount			value		of net
Bonds & notes - 96.09%		(000	)		(000	)	assets

Alaska - 1.84%
Northern Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds, Series 2001, 5.375% 2021 (preref. 2011)	$	6,365		$	6,689		.68
Other securities					11,419		1.16
					18,108		1.84

California - 6.31%
Various Purpose G.O. Bonds 5.00% 2015		5,000			5,364		.54
Pollution Control Fncg. Auth., AMT:
Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2005-A, 4.70% 2025 (put 2012)		4,250			4,330
Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), 5.00% 2038 (put 2013)		2,000			2,068
Solid Waste Disposal Rev. Ref. Bonds (USA Waste Services, Inc. Project), 5.10% 2018 (put 2008)		2,000			2,024		.86
Tobacco Securitization Auth., Tobacco Settlement Asset-backed Bonds (San Diego County Tobacco Asset Securitization Corp.), Series 2001-A, 5.25% 2027 (preref. 2012)		4,105			4,403		.45
Other securities					43,783		4.46
					61,972		6.31

Colorado - 2.30%
Denver Convention Center Hotel Auth., Rev. Bonds, Series 2003-A, XLCA insured, 5.00% 2012		4,000			4,246		.43
Other securities					18,349		1.87
					22,595		2.30

Connecticut - 0.56%
Other securities					5,513		.56


District of Columbia - 1.02%
Other securities					9,990		1.02


Florida - 4.11%
City of Coral Gables, Health Facs. Auth., Hospital Rev. Bonds (Baptist Health South Florida Obligated Group), Series 2004, FSA insured, 5.00% 2034 (put 2014)		4,000			4,235		.43
Palm Beach County, Public Improvement Rev. Ref. Bonds (Convention Center Project), Series 2004, FGIC insured, 5.00% 2030 (put 2011)		4,650			4,852		.50
Other securities					31,235		3.18
					40,322		4.11

Georgia - 1.25%
Other securities					12,261		1.25


Idaho - 0.64%
Other securities					6,291		.64


Illinois - 5.87%
City of Chicago, Gas Supply Rev. Ref. Bonds (Peoples Gas Light and Coke Co. Project), Series 2000-B, 4.75% 2030 (put 2014)		6,500			6,641		.68
Educational Facs. Auth., Rev. Bonds (Field Museum of Natural History), Series 2002, 4.05% 2036 (put 2011)		4,000			3,972		.40
G.O. Bonds, Illinois FIRST, 5.25% 2010		2,000			2,104
G.O. Ref. Bonds, Series of June 2006, 5.00% 2015		7,750			8,317		1.06
Other securities					36,588		3.73
					57,622		5.87

Indiana - 1.67%
Other securities					16,423		1.67


Louisiana - 0.69%
Housing Fin. Agcy., Multi-family Mortgage Rev. Ref. Bonds (Section 8 Assisted - 202 Elderly Projects), Series 2006-A, 4.75% 2031		4,000			4,023		.41
Other securities					2,729		.28
					6,752		.69
							.00
Maryland - 1.29%
Other securities					12,679		1.29


Massachusetts - 1.92%
Other securities					18,853		1.92


Michigan - 3.73%
Strategic Fund, Solid Waste Disposal Limited Obligation Rev. Ref. Bonds (Waste Management, Inc. Project), AMT, 3.00% 2013 (put 2007)		3,000			3,000		.31
Other securities					33,597		3.42
					36,597		3.73

Minnesota - 1.08%
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2006-I, AMT, 5.75% 2038		4,000			4,237		.43
Minneapolis-St. Paul Metropolitan Airports Commission, Airport Rev. Bonds, Series 2005-B, AMT, AMBAC insured, 5.00% 2015		5,000			5,312		.54
Other securities					1,088		.11
					10,637		1.08

Missouri - 1.47%
Health and Educational Facs. Auth., Rev. Bonds (SSM Health Care), Series 2002-A, 5.00% 2011		4,005			4,168		.43
Other securities					10,232		1.04
					14,400		1.47

Montana - 0.58%
Other securities					5,679		.58


Nebraska - 0.74%
Other securities					7,221		.74


Nevada - 1.67%
Other securities					16,448		1.67


New Jersey - 5.47%
Health Care Facs. Fncg. Auth., Rev. and Ref. Bonds, Saint Clare's Hospital, Inc. Issue, Series 2004-B, MBIA insured, 5.25% 2013		4,315			4,652		.47
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds:
Series 2003, 6.125% 2024 (preref. 2013)		9,545			10,217
4.375% 2019 (preref. 2013)		645			647		1.11
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, Series 2007-1A:
4.50% 2023		4,000			3,929
5.00% 2015		5,000			5,160		.93
Transit Corp., Certs. of Part., Series 2003-A, AMBAC insured, 5.25% 2014		8,000			8,695		.88
Transportation Trust Fund Auth., Transportation System Bonds, Series 2004-B, FGIC insured, 5.25% 2013		4,410			4,781		.49
Other securities					15,608		1.59
					53,689		5.47

New York - 4.77%
Dormitory Auth.:
Lease Rev. Bonds (State University Educational Facs. Issue), 5.25% 2032 (put 2013)		2,000			2,155
Third General Resolution Rev. Bonds (State University Educational Facs. Issue), Series 2002-B, 5.25% 2023 (put 2012)		10,000			10,646		1.30
New York City Transitional Fin. Auth., Future Tax Secured Ref. Bonds, Series 2003-A, 5.50%/14.00% 2026 (1)		5,000			5,349		.55
Other securities					28,711		2.92
					46,861		4.77

North Carolina - 3.21%
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, 5.125%-6.625% 2009-2013		14,660			15,503		1.58
Other securities					16,047		1.63
					31,550		3.21

Ohio - 2.87%
Other securities					28,211		2.87


Pennsylvania - 1.83%
Harrisburg Auth., Dauphin County, Recovery Fac. Rev. Bonds, Series D, Subseries D-2, FSA insured, 5.00% 2033 (put 2013)		6,500			6,899		.70
Other securities					11,037		1.13
					17,936		1.83

Puerto Rico - 1.26%
Public Fin. Corp., Commonwealth Appropriation Bonds, Series 2004-A, 5.75% 2027 (put 2012)		6,000			6,428		.65
Other securities					5,984		.61
					12,412		1.26

Rhode Island - 0.91%
Other securities					8,944		.91


Tennessee - 3.35%
Memphis-Shelby County Airport Auth., Special Facs. Rev. Ref. Bonds (Federal Express Corp.), Series 2001, 5.00% 2009		5,050			5,135		.52
Tennessee Energy Acquisition Corp., Gas Project Rev. Bonds:
Series 2006-A, 5.00% 2014		5,000			5,315
Series 2006-A, 5.00% 2015		10,000			10,669
5.00% 2013		500			529		1.68
Other securities					11,302		1.15
					32,950		3.35

Texas - 18.08%
City of Dallas (Dallas, Denton, Collin and Rockwall Counties), G.O. Bonds, Series 2005, 5.00% 2014		5,090			5,439		.55
G.O. Bonds (Veterans' Housing Assistance Program), Fund II Series 2001-A-1, AMT, 4.85% 2014		8,255			8,418		.86
Harris County, Tax and Rev. Ref. Bonds, Series 2004-B, FSA insured, 5.00% 2032 (put 2012)		9,250			9,759		.99
Sabine River Auth., Pollution Control Rev. Ref. Bonds (TXU Electric Co. Project), Series 2001-B, AMT, 5.75% 2030 (put 2011)		4,675			4,952		.50
Sam Rayburn Municipal Power Agcy., Power Supply System Rev. Ref. Bonds:
Series 2002-A, 5.50% 2010		4,740			4,922
Series 2002-B, RADIAN insured, 5.00% 2009		5,200			5,333		1.04
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds:
New Series 2002, 5.25% 2011		4,500			4,734
New Series 2002, 5.375% 2015		5,480			6,012
5.00%-5.25% 2014-2015		2,500			2,693		1.37
City of San Antonio, General Improvement and Ref. Bonds, Series 2005, 5.25% 2015		7,000			7,621		.78
City of San Antonio, Hotel Occupancy Tax Rev. Ref. Bonds, Series 2004-B, AMBAC insured, 5.00% 2034 (put 2008)		4,000			4,074		.41
Transportation Commission, G.O. Bonds, Series 2005-A, 5.00% 2013		4,250			4,503		.46
Board of Regents of the University of Texas System, Rev. Ref. Fncg. System Bonds:
Series 2002-B, 5.25% 2015		6,670			7,300
Series 2004-B, 5.25% 2016		10,090			11,093
5.25% 2012		1,000			1,068		1.98
Waco Health Facs. Dev. Corp., Rev. Ref. Bonds (Hillcrest Health System), Series 2003, MBIA insured, 5.00% 2011		3,715			3,881		.40
Other securities					85,813		8.74
					177,615		18.08

Virginia - 1.31%
Industrial Dev. Auth. of the County of Charles City, Tax-Exempt Solid Waste Disposal Rev. Bonds (Waste Management, Inc.), AMT, 6.25% 2027 (put 2012)		2,000			2,169		.22
Other securities					10,716		1.09
					12,885		1.31

Virgin Islands - 0.50%
Public Fin. Auth., Rev. and Ref. Bonds (Matching Fund Loan Notes), Series 1998-A, 5.20% 2010		4,765			4,899		.50


Washington - 4.22%
Various Purpose G.O. Ref. Bonds, Series R-2006-A, AMBAC insured, 5.00% 2015		5,000			5,389		.55
Other securities					36,048		3.67
					41,437		4.22

Wisconsin - 4.48%
City of Franklin (Waste Management of Wisconsin, Inc. Project), AMT:
Regional Solid Waste Fin. Commission, Demand Solid Waste Disposal Rev. Bonds, Series 2003-A, 4.95% 2016		8,000			8,330
Solid Waste Disposal Rev. Bonds, 4.95% 2016		1,000			1,041		.95
G.O. Bonds, Series 2003-C, 5.25% 2014		7,770			8,430		.86
Village of Weston, Pollution Control Rev. Ref. Bonds (Wisconsin Public Service Corp. Projects), Series 2006, 3.95% 2013		5,000			5,012		.51
Other securities					21,223		2.16
					44,036		4.48

Other states & U.S. territories - 3.00%
Other securities					29,533		3.00


Multi-state - 2.09%
Charter Mac Equity Issuer Trust, Medium Term Tax-Exempt Multi-family Housing Trust Certficates, Series 2006-A-2, Class A, AMT, 4.72% 2018 (2)		8,000			8,205		.83
MuniMae TE Bond Subsidiary, LLC, AMT (2):
Series A-3, 4.95% cumulative preferred (undated)		6,000			6,122
4.90%-6.875% (undated)		4,000			4,147		1.05
Other securities					2,044		.21
					20,518		2.09


Total bonds & notes (cost: $939,983,000)					943,839		96.09



		Principal			Market		Percent
		amount			value		of net
Short-term securities - 3.07%		(000	)		(000	)	assets

Public Building Auth. of the City of Clarksville, Pooled Fncg. Rev. Bonds (Tennessee Municipal Bond Fund),
3.73% 2031-2033 (3) (4)	$	5,900		$	5,900		.60
Public Building Auth. of the County of Montgomery, Pooled Fncg. Rev. Bonds (Tennessee County Loan Pool),
3.73% 2032-2036 (3) (4)		8,320			8,320		.85
Other securities					15,930		1.62

Total short-term securities (cost: $30,150,000)					30,150		3.07

Total investment securities (cost: $970,133,000)					973,989		99.16
Other assets less liabilities					8,217		.84

Net assets				$	982,206		100.00	%

"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio.

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

(1) Step bond; coupon rate will increase at a later date.
(2) Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities, including those in "Other securities" in the summary investment portfolio, was $26,223,000, which represented 2.67% of the net assets of the fund.
(3) Coupon rate may change periodically; the date of the next scheduled coupon rate change is considered to be the maturity date.
(4) This security, or a portion of this security, has been segregated to cover funding requirements on investment transactions settling in the future.


See Notes to Financial Statements


Key to abbreviations

Agcy. = Agency
AMT = Alternative Minimum Tax
Auth. = Authority
Certs. of Part. = Certificates of Participation
Dept. = Department
Dev. = Development
Dist. = District
Econ. = Economic
Fac. = Facility
Facs. = Facilities
Fin. = Finance
Fncg. = Financing
G.O. = General Obligation
Preref. = Prerefunded
Redev. = Redevelopment
Ref. = Refunding
Rev. = Revenue
TECP = Tax-Exempt Commercial Paper

Financial statements

Statement of assets and liabilities			unaudited
at January 31, 2007	(dollars and shares in thousands, except per-share amounts)

Assets:
Investment securities at market (cost: $970,133)		$	973,989
Cash			198
Receivables for:
Sales of fund's shares	1,715
Interest	11,464		13,179
			987,366
Liabilities:
Payables for:
Purchases of investments	2,099
Repurchases of fund's shares	1,454
Dividends on fund's shares	799
Investment advisory services	232
Services provided by affiliates	448
Deferred trustees' compensation	114
Other	14		5,160
Net assets at January 31, 2007		$	982,206

Net assets consist of:
Capital paid in on shares of beneficial interest		$	981,412
Undistributed net investment income			62
Accumulated net realized loss			(3,124	)
Net unrealized appreciation			3,856
Net assets at January 31, 2007		$	982,206

Shares of beneficial interest issued and outstanding - unlimited shares authorized (64,606 total shares outstanding)
		Net assets	Shares outstanding		Net asset value per share(*	)

Class A	$	783,867	51,560	$	15.20
Class B		35,042	2,305		15.20
Class C		68,404	4,500		15.20
Class F		51,711	3,401		15.20
Class R-5		43,182	2,840		15.20
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $15.59.


See Notes to Financial Statements

Statement of operations
for the six months ended January 31, 2007
Investment income:					unaudited
Income:		(dollars in thousands)
Interest				$	20,339

Fees and expenses(*):
Investment advisory services		1,549
Distribution services		1,825
Transfer agent services		87
Administrative services		72
Reports to shareholders		37
Registration statement and prospectus		47
Postage, stationery and supplies		12
Trustees' compensation		29
Auditing and legal		11
Custodian		2
Federal and state income taxes		29
Other		26
Total fees and expenses before waiver		3,726
Less waiver of fees and expenses:
Investment advisory services		155
Total fees and expenses after waiver					3,571
Net investment income					16,768


Net realized gain and unrealized appreciation on investments:
Net realized gain on investments					428

Net unrealized appreciation on investments					3,962

Net realized gain and unrealized appreciation on investments					4,390

Net increase in net assets resulting from operations				$	21,158

(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.



Statements of changes in net assets		(dollars in thousands)



	Six months ended January 31, 2007^*				Year ended July 31, 2006
Operations:
Net investment income	$	16,768		$	33,950
Net realized gain on investments		428			243
Net unrealized appreciation (depreciation) on investments		3,962			(14,822	)

Net increase in net assets resulting from operations		21,158			19,371

Dividends paid or accrued to
shareholders from net investment income:		(16,791	)		(33,928	)

Capital share transactions		(28,190	)		(74,109	)

Total decrease in net assets		(23,823	)		(88,666	)

Net assets:
Beginning of period		1,006,029			1,094,695

End of period (including undistributed net investment income:
$62 and $85, respectively)	$	982,206		$	1,006,029

^*Unaudited.

See Notes to Financial Statements

Notes to financial statements

1.	Organization and significant accounting policies

Organization - Limited Term Tax-Exempt Bond Fund of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide you with a current income exempt from federal income taxes, consistent with preservation of capital, by investing primarily in investment-grade municipal bonds. The average effective maturity of the fund’s portfolio is between three and 10 years.

The fund offers five share classes consisting of four retail share classes, and one retirement plan share class. The retirement plan share class (R-5) is sold without any sales charges and does not carry any conversion rights. The fund’s share classes are described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Class A	Up to 2.50%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Class B	None	Declines from 5% to 0% for redemptions within six years of purchase	Class B converts to Class A after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F after 10 years
Class F	None	None	None
Class R-5	None	None	None

Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.

Significant accounting policies - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:

Security valuation - Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Some securities may be valued based on their effective maturity or average life, which may be shorter than the stated maturity. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under procedures adopted by authority of the fund's board of trustees. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions.

Security transactions and related investment income - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Class allocations -Income, fees and expenses (other than class-specific fees and expenses) are allocated daily among the various share classes based on the relative value of their settled shares. Realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.

Dividends and distributions to shareholders -Dividends paid to shareholders are declared daily after the determination of the fund’s net investment income and are paid to shareholders monthly. Distributions paid to shareholders are recorded on the ex-dividend date.

2. Federal income taxation and distributions

The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net income and net capital gains each year. The fund is not subject to income taxes to the extent taxable income and net capital gains are distributed. Generally, income earned by the fund is exempt from federal income taxes; however, the fund may earn taxable income from certain investments.

Distributions - Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as short-term capital gains and losses; net capital losses and amortization of market discounts. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gainsare recorded by the fund for financial reporting purposes.

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of July 31, 2006, the components of distributable earnings on a tax basis were as follows:

		(dollars in thousands)
Undistributed tax-exempt income			$	825
Capital loss carryforwards*:
Expiring 2011	$	<2,914>
Expiring 2012		<638>		<3,552>
*The capital loss carryforwards will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration dates. The fund will not make distributions from capital gains while capital loss carryforwards remain.

As of January 31, 2007, the tax basis unrealized appreciation (depreciation) and cost of investments were as follows:

(dollars in thousands)
Gross unrealized appreciation on investment securities	$	9,202
Gross unrealized depreciation on investment securities		<5,222>
Net unrealized appreciation on investment securities		3,980
Cost of investment securities		970,009

Tax-exempt income distributions paid or accrued to shareholders were as follows (dollars in thousands):

Share class		Six months ended January 31, 2007		Year ended July 31, 2006
Class A	$	13,653	$	27,578
Class B		526		1,192
Class C		996		2,288
Class F		819		1,329
Class R-5		797		1,541
Total	$	16,791	$	33,928

3. Fees and transactions with related parties

Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Service Company ^SM ("AFS"), the fund’s transfer agent, and American Funds Distributors^SM, Inc. ("AFD"), the principal underwriter of the fund’s shares.

Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.30% on the first $60 million of daily net assets and decreasing to 0.15% on such assets in excess of $1 billion. The agreement also provides for monthly fees, accrued daily, of 3.00% on the first $3,333,333 of the fund's monthly gross income and 2.50% on such income in excess of $3,333,333. CRMC is currently waiving 10% of investment advisory services fees. During the six months ended January 31, 2007, total investment advisory services fees waived by CRMC were $155,000. As a result, the fee shown on the accompanying financial statements of $1,549,000, which was equivalent to an annualized rate of 0.308%, was reduced to $1,394,000, or 0.277% of average daily net assets.

Class-specific fees and expenses - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:

Distribution services - The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted on the following page. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Class A, the board of trustees has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. This class reimburses AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30% is not exceeded. As of January 31, 2007, unreimbursed expenses subject to reimbursement totaled $8,000 for Class A.

Share class	Currently approved limits	Plan limits
Class A	0.30%	0.30%
Class B	1.00	1.00
Class C	1.00	1.00
Class F	0.25	0.50

Transfer agent services - The fund has a transfer agent agreement with AFS for Class A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.

Administrative services - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Class A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services.

Expenses under the agreements described above for the six months ended January 31, 2007, were as follows (dollars in thousands):

Share class	Distribution services	Transfer agent services	Administrative services
Share class	Distribution services	Transfer agent services	CRMC administrative services	Transfer agent services
Class A	$1,200	$82	Not applicable	Not applicable
Class B	193	5	Not applicable	Not applicable
Class C	372	Included in administrative services	$28	$3
Class F	60		16	2
Class R-5	Not applicable		22	1
Total	$1,825	$87	$66	$6

Deferred trustees’ compensation - Since the adoption of the deferred compensation plan in 1994, trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $29,000, shown on the accompanying financial statements, includes $17,000 in current fees (either paid in cash or deferred) and a net increase of $12,000 in the value of the deferred amounts.

Affiliated officers and trustees - Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or trustees received any compensation directly from the fund.

4. Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):

Share class	Sales^(*)			Reinvestments of dividends			Repurchases^(*)					Net (decrease) increase
		Amount	Shares		Amount	Shares		Amount		Shares			Amount		Shares
Six months ended January 31, 2007
Class A	$	103,798	6,791	$	10,539	689	$	(133,532	)	(8,743	)	$	(19,195	)	(1,263	)
Class B		643	42		378	25		(7,369	)	(482	)		(6,348	)	(415	)
Class C		2,098	138		764	50		(12,313	)	(806	)		(9,451	)	(618	)
Class F		18,575	1,217		542	35		(13,979	)	(915	)		5,138		337
Class R-5		6,326	415		390	25		(5,050	)	(331	)		1,666		109
Total net increase
(decrease)	$	131,440	8,603	$	12,613	824	$	(172,243	)	(11,277	)	$	(28,190	)	(1,850	)

Year ended July 31, 2006
Class A	$	198,195	13,018	$	21,215	1,395	$	(265,476	)	(17,458	)	$	(46,066	)	(3,045	)
Class B		1,489	98		875	57		(11,015	)	(724	)		(8,651	)	(569	)
Class C		11,915	782		1,782	117		(34,653	)	(2,278	)		(20,956	)	(1,379	)
Class F		26,590	1,751		977	64		(20,276	)	(1,333	)		7,291		482
Class R-5		8,483	560		759	50		(14,969	)	(985	)		(5,727	)	(375	)
Total net increase
(decrease)	$	246,672	16,209	$	25,608	1,683	$	(346,389	)	(22,778	)	$	(74,109	)	(4,886	)

(*) Includes exchanges between share classes of the fund.

5. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities, of $131,832,000 and $170,603,000, respectively, during the six months ended January 31, 2007.

Financial highlights (1)

					Income from investment operations⁽²⁾

				Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized	)		Total from investment operations		Dividends (from net investment income	)		Net asset value, end of period	Total return(3	)		Net assets, end of period (in millions	)	Ratio of expenses to average net assets before waivers				Ratio of expenses to average net assets after waivers		(4	)	Ratio of net income to average net assets
Class A:
Six months ended 1/31/2007	(5	)	$	15.14	$	.26	$	.06		$	.32	$	(.26	)	$	15.20	2.14	%	$	784		.67	%	(6	)	.64	%	(6	)	3.41	%	(6	)
Year ended 7/31/2006				15.34		.50		(.20	)		.30		(.50	)		15.14	2.00			800		.66				.63				3.30
Year ended 7/31/2005				15.33		.51		.01			.52		(.51	)		15.34	3.40			857		.66				.64				3.29
Year ended 7/31/2004				15.17		.51		.16			.67		(.51	)		15.33	4.40			793		.68				.66				3.27
Year ended 7/31/2003				15.28		.52		(.11	)		.41		(.52	)		15.17	2.71			738		.71				.66				3.37
Year ended 7/31/2002				15.08		.58		.20			.78		(.58	)		15.28	5.32			497		.75				.70				3.86
Class B:
Six months ended 1/31/2007	(5	)		15.14		.21		.06			.27		(.21	)		15.20	1.78			35		1.38		(6	)	1.34		(6	)	2.71		(6	)
Year ended 7/31/2006				15.34		.40		(.20	)		.20		(.40	)		15.14	1.30			41		1.37				1.33				2.59
Year ended 7/31/2005				15.33		.40		.01			.41		(.40	)		15.34	2.69			50		1.37				1.35				2.59
Year ended 7/31/2004				15.17		.40		.16			.56		(.40	)		15.33	3.69			52		1.38				1.37				2.57
Year ended 7/31/2003				15.28		.42		(.11	)		.31		(.42	)		15.17	1.98			51		1.40				1.35				2.63
Year ended 7/31/2002				15.08		.47		.20			.67		(.47	)		15.28	4.52			17		1.45				1.40				3.06
Class C:
Six months ended 1/31/2007	(5	)		15.14		.21		.06			.27		(.21	)		15.20	1.75			68		1.43		(6	)	1.40		(6	)	2.66		(6	)
Year ended 7/31/2006				15.34		.39		(.20	)		.19		(.39	)		15.14	1.25			78		1.41				1.38				2.55
Year ended 7/31/2005				15.33		.38		.01			.39		(.38	)		15.34	2.57			100		1.49				1.47				2.46
Year ended 7/31/2004				15.17		.38		.16			.54		(.38	)		15.33	3.55			107		1.51				1.50				2.43
Year ended 7/31/2003				15.28		.40		(.11	)		.29		(.40	)		15.17	1.86			106		1.54				1.49				2.51
Year ended 7/31/2002				15.08		.45		.20			.65		(.45	)		15.28	4.38			49		1.58				1.52				2.92
Class F:
Six months ended 1/31/2007	(5	)		15.14		.26		.06			.32		(.26	)		15.20	2.13			52		.67		(6	)	.64		(6	)	3.40		(6	)
Year ended 7/31/2006				15.34		.50		(.20	)		.30		(.50	)		15.14	2.00			46		.66				.63				3.29
Year ended 7/31/2005				15.33		.50		.01			.51		(.50	)		15.34	3.32			40		.74				.72				3.20
Year ended 7/31/2004				15.17		.49		.16			.65		(.49	)		15.33	4.32			33		.76				.75				3.17
Year ended 7/31/2003				15.28		.51		(.11	)		.40		(.51	)		15.17	2.61			29		.79				.74				3.27
Year ended 7/31/2002				15.08		.55		.20			.75		(.55	)		15.28	5.11			13		.87				.82				3.69
Class R-5:
Six months ended 1/31/2007	(5	)		15.14		.28		.06			.34		(.28	)		15.20	2.25			43		.45		(6	)	.42		(6	)	3.63		(6	)
Year ended 7/31/2006				15.34		.53		(.20	)		.33		(.53	)		15.14	2.22			41		.44				.41				3.52
Year ended 7/31/2005				15.33		.54		.01			.55		(.54	)		15.34	3.63			48		.44				.42				3.51
Year ended 7/31/2004				15.17		.54		.16			.70		(.54	)		15.33	4.63			50		.46				.44				3.49
Year ended 7/31/2003				15.28		.56		(.11	)		.45		(.56	)		15.17	2.93			40		.49				.44				3.61
Period from 7/15/2002 to 7/31/2002				15.27		.02		.01			.03		(.02	)		15.28	.23			27		.02				.02				.16

	Six months ended January 31,		Year ended July 31
	2007⁽⁵	⁾	2006		2005		2004		2003		2002

Portfolio turnover rate for all classes of shares	14	%	25	%	12	%	10	%	10	%	9	%

(1) Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year.

(2) Based on average shares outstanding.

(3) Total returns exclude all sales charges, including contingent deferred sales charges.

(4) The ratios in this column reflect the impact, if any, of certain waivers from CRMC. During the periods shown, CRMC reduced fees for investment advisory services for all share classes.

(5) Unaudited.

(6) Annualized.

See Notes to Financial Statements

Expense example

unaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2006, through January 31, 2007).

Actual expenses:

The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. 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 in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

		Beginning account value 8/1/2006		Ending account value 1/31/2007		Expenses paid during period^*	Annualized expense ratio

Class A -- actual return	$	1,000.00	$	1,021.36	$	3.26	.64	%
Class A -- assumed 5% return		1,000.00		1,021.98		3.26	.64
Class B -- actual return		1,000.00		1,017.82		6.82	1.34
Class B -- assumed 5% return		1,000.00		1,018.45		6.82	1.34
Class C -- actual return		1,000.00		1,017.55		7.12	1.40
Class C -- assumed 5% return		1,000.00		1,018.15		7.12	1.40
Class F -- actual return		1,000.00		1,021.33		3.26	.64
Class F -- assumed 5% return		1,000.00		1,021.98		3.26	.64
Class R-5 -- actual return		1,000.00		1,022.46		2.14	.42
Class R-5 -- assumed 5% return		1,000.00		1,023.09		2.14	.42
*Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (184), and divided by 365 (to reflect the one-half year period).

Offices of the fund and of the

investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

135 South State College Boulevard

Brea, CA 92821-5823

Transfer agent for shareholder accounts

American Funds Service Company

(Please write to the address nearest you.)

P.O. Box 25065

Santa Ana, CA 92799-5065

P.O. Box 659522

San Antonio, TX 78265-9522

P.O. Box 6007

Indianapolis, IN 46206-6007

P.O. Box 2280

Norfolk, VA 23501-2280

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

Counsel

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street

Los Angeles, CA 90071-2228

Independent registered public accounting firm

PricewaterhouseCoopers LLP

350 South Grand Avenue

Los Angeles, CA 90071-2889

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

There are several ways to invest in Limited Term Tax-Exempt Bond Fund of America. Class A shares are subject to a 2.50% maximum up-front sales charge that declines for accounts (and aggregated investments) of $500,000 or more and is eliminated for purchases of $1 million or more. Other share classes have no up-front sales charges but are subject to additional annual expenses and fees. Annualized expenses for Class B shares were 0.70 percentage points higher than for Class A shares; Class B shares convert to Class A shares after eight years of ownership. If redeemed within six years, Class B shares may also be subject to a contingent deferred sales charge (“CDSC”) of up to 5% that declines over time. Class C shares were subject to annualized expenses 0.76 percentage points higher than those for Class A shares and a 1% CDSC if redeemed within the first year after purchase. Class C shares convert to Class F shares after 10 years. Class F shares, which are available only through certain fee-based programs offered by broker-dealer firms and registered investment advisers, had the same annualized expenses as did Class A shares, and an annual asset-based fee charged by the sponsoring firm. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class.

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s prospectus, which can be obtained from your financial adviser and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.

“American Funds Proxy Voting Guidelines” — which describes how we vote proxies relating to portfolio securities — is available free of charge on the U.S. Securities and Exchange Commission (SEC) website at sec.gov, on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the SEC for the 12 months ended June 30 by August 31. The report also is available on the SEC and American Funds websites.

A complete January 31, 2007, portfolio of Limited Term Tax-Exempt Bond Fund of America’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

Limited Term Tax-Exempt Bond Fund of America files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. (800/SEC-0330). Additionally, the list of portfolio holdings also is available by calling AFS.

This report is for the information of shareholders of Limited Term Tax-Exempt Bond Fund of America, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after March 31, 2007, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

[logo - American Funds^®]

The right choice for the long term^®

What makes American Funds different?

For 75 years, we have followed a consistent philosophy that we firmly believe is in our investors’ best interests. The range of opportunities offered by our family of just 30 carefully conceived, broadly diversified funds has attracted over 40 million shareholder accounts.

Our unique combination of strengths includes these five factors:

• A long-term, value-oriented approach

We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.

• An extensive global research effort

Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.

• The multiple portfolio counselor system

Our unique method of portfolio management, developed nearly 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.

• Experienced investment professionals

American Funds portfolio counselors have an average of 24 years of investment experience, providing a wealth of knowledge and experience that few organizations have.

• A commitment to low operating expenses

The American Funds provide exceptional value for shareholders, with operating expenses that are among the lowest in the mutual fund industry.

American Funds span a range of investment objectives

• Growth funds

AMCAP Fund^®

EuroPacific Growth Fund^®

The Growth Fund of America^®

The New Economy Fund^®

New Perspective Fund^®

New World Fund^SM

SMALLCAP World Fund^®

• Growth-and-income funds

American Mutual Fund^®

Capital World Growth and Income Fund^SM

Fundamental Investors^SM

The Investment Company of America^®

Washington Mutual Investors Fund^SM

• Equity-income funds

Capital Income Builder^®

The Income Fund of America^®

• Balanced fund

American Balanced Fund^®

• Bond funds

American High-Income Trust^SM

The Bond Fund of America^SM

Capital World Bond Fund^®

Intermediate Bond Fund of America^®

Short-Term Bond Fund of America^SM

U.S. Government Securities Fund^SM

• Tax-exempt bond funds

American High-Income Municipal Bond Fund^®

> Limited Term Tax-Exempt Bond Fund of America^SM

The Tax-Exempt Bond Fund of America^®

State-specific tax-exempt funds

The Tax-Exempt Fund of California^®

The Tax-Exempt Fund of Maryland^®

The Tax-Exempt Fund of Virginia^®

• Money market funds

The Cash Management Trust of America^®

The Tax-Exempt Money Fund of America^SM

The U.S. Treasury Money Fund of America^SM

• American Funds Target Date Retirement Series^SM

The Capital Group Companies

American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust

Lit No. MFGESR-943-0307P

Litho in USA WG/CG/8089-S7480

Printed on recycled paper

ITEM 2 - Code of Ethics

Not applicable for filing of semi-annual reports to shareholders.

ITEM 3 - Audit Committee Financial Expert

Not applicable for filing of semi-annual reports to shareholders.

ITEM 4 - Principal Accountant Fees and Services

Not applicable for filing of semi-annual reports to shareholders.

ITEM 5 - Audit Committee of Listed Registrants

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.

ITEM 6 - Schedule of Investments

[logo - American Funds®]

Limited Term Tax-Exempt Bond Fund of AmericaSM

Investment portfolio

January 31, 2007

unaudited

Bonds & notes — 96.09%	Principal amount (000)			Market value (000)

ALABAMA — 0.16%
Port Auth., Docks Facs. Rev. Bonds, Series 2006-A, AMT, MBIA insured, 5.00% 2016	$	1,000		$	1,063
Board of Trustees of the University of Alabama, University of Alabama at Birmingham Hospital Rev. Bonds, Series 2006-A, 5.00% 2015		500			529
					1,592


ALASKA — 1.84%
Housing Fin. Corp., Home Mortgage Rev. Bonds, Series 2006-C, AMT, MBIA insured, 5.50% 2037		2,500			2,642
Industrial Dev. and Export Auth., Revolving Fund Ref. Bonds, Series 2002-A, AMT, MBIA insured, 5.50% 2009		1,685			1,741
Northern Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds, Series 2000,
5.60% 2010 (escrowed to maturity)		1,000			1,055
Northern Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds, Series 2001, 4.75% 2015 (preref. 2009)		1,640			1,659
Northern Tobacco Securitization Corp., Tobacco Settlement Asset-backed Bonds, Series 2001, 5.375% 2021 (preref. 2011)		6,365			6,689
Student Loan Corp., Capital Project Rev. Bonds, Series 2004-A, MBIA insured, 4.00% 2011		1,000			1,004
Student Loan Corp., Education Loan Rev. Bonds, Series 2006-A-2, AMT, 5.00% 2014		1,000			1,054
Student Loan Corp., Education Loan Rev. Bonds, Series 2006-A-2, AMT, 5.00% 2016		1,000			1,064
Student Loan Corp., Student Loan Rev. Bonds, Series 2000-A, AMT, AMBAC insured, 5.65% 2010		1,140			1,200
					18,108


ARIZONA — 0.33%
Industrial Dev. Auth. of the County of Mohave, Correctional Facs. Contract Rev. Bonds (Mohave Prison, LLC Project), Series 2004-A, XLCA insured, 5.00% 2011		1,345			1,403
Town of Queen Creek, Improvement Dist. No. 001, Improvement Bonds, 5.00% 2013		1,000			1,038
Town of Queen Creek, Improvement Dist. No. 001, Improvement Bonds, 5.00% 2015		750			775
					3,216


CALIFORNIA — 6.31%
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Multi-family Housing Rev. Ref. Bonds (Archstone/Redwood Shores Apartments), Series 2000-A, 5.30% 2008		2,700			2,761
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(American Baptist Homes of the West Facs. Project), Series 1997-A, 5.25% 2007		175			176
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(American Baptist Homes of the West Facs. Project), Series 1997-A, 5.50% 2007		155			156
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(Episcopal Homes Foundation), Series 1998, 5.00% 2007		1,405			1,409
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(Episcopal Homes Foundation), Series 1998, 5.00% 2008		2,455			2,476
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Rev. Ref. Certs. of Part.
(Episcopal Homes Foundation), Series 1998, 5.125% 2013		1,000			1,019
Assn. of Bay Area Governments, Fin. Auth. for Nonprofit Corps., Southern California Presbyterian Homes Obligated Group,
Rev. Bonds (Redwood Senior Homes and Services), Series 2002, 5.50% 2012		1,695			1,783
California County Tobacco Securitization Agcy., Tobacco Settlement Asset-backed Bonds
(Alameda County Tobacco Asset Securitization Corp.), Series 2002, 4.75% 2019		1,750			1,763
City of Cathedral City, Cove Improvement Dist. No. 2004-02, Limited Obligation Improvement Bonds, 4.15% 2012		500			492
City of Cathedral City, Cove Improvement Dist. No. 2004-02, Limited Obligation Improvement Bonds, 4.40% 2014		705			702
Various Purpose G.O. Bonds 5.00% 2015		5,000			5,364
Golden State Tobacco Securitization Corp., Enhanced Tobacco Settlement Asset-backed Bonds, Series 2003-B, FGIC insured, 5.50% 2033 (preref. 2013)		1,000			1,098
Health Facs. Fncg. Auth., Rev. Bonds (Catholic Healthcare West), Series 2004-H, 4.45% 2026 (preref. 2011)		80			82
Statewide Communities Dev. Auth., Certs. of Part. (Catholic Healthcare West), 6.00% 2009 (escrowed to maturity)		185			190
Health Facs. Fncg. Auth., Rev. Bonds (Catholic Healthcare West), Series 2004-H, 4.45% 2026 (put 2011)		920			932
Statewide Communities Dev. Auth., Certs. of Part. (Catholic Healthcare West), 6.00% 2009		210			214
Independent Cities Lease Fin. Auth., Mobile Home Park Rev. Bonds (San Juan Mobile Estates), Series 2006-A, 5.00% 2016		1,255			1,315
Joint Powers Health Fncg. Auth., Certs. of Part. (Community Hospitals of Central California Project), Series 2001, 4.75% 2007		1,005			1,005
City of Long Beach, Harbor Rev. Bonds, Series 2002-B, AMT, MBIA insured, 5.25% 2013		2,550			2,723
City of Long Beach, Harbor Rev. Ref. Bonds, Series 2005-A, AMT, MBIA insured, 5.00% 2014		2,000			2,120
Community Redev. Agcy. of the City of Los Angeles, Lease Rev. Bonds (Vermont Manchester Social Services Project), Series 2005, AMBAC insured, 5.00% 2013		1,900			2,037
Pollution Control Fncg. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2005-A, AMT, 4.70% 2025 (put 2012)		4,250			4,330
Pollution Control Fncg. Auth., Solid Waste Disposal Rev. Bonds (Waste Management, Inc. Project), Series 2003-A, AMT, 5.00% 2038 (put 2013)		2,000			2,068
Pollution Control Fncg. Auth., Solid Waste Disposal Rev. Ref. Bonds (USA Waste Services, Inc. Project), Series 1998-A, AMT, 5.10% 2018 (put 2008)		2,000			2,024
Regional Airports Improvement Corp., Facs. Lease Rev. Ref. Bonds (LAXFUEL Corp., Los Angeles International Airport), Issue of 2005, AMT, FSA insured, 5.00% 2014		1,020			1,067
Statewide Communities Dev. Auth., Apartment Dev. Rev. Ref. Bonds (Irvine Apartment Communities, LP), Series 1998-A-1, AMT, 5.05% 2025 (put 2008)		1,000			1,013
Statewide Communities Dev. Auth., Multi-family Housing Rev. Ref. Bonds (Equity Residential/Parkview Terrace Club Apartments), Issue 1999-B, 5.20% 2029 (put 2009)		1,150			1,183
Statewide Communities Dev. Auth., Multi-family Housing Rev. Ref. Bonds (Equity Residential/Skylark Apartments), Issue 1999-D, 5.20% 2029 (put 2009)		1,500			1,544
Statewide Communities Dev. Auth., Rev. Bonds (Daughters of Charity Health System), Series 2005-G, 5.25% 2011		2,100			2,192
Statewide Communities Dev. Auth., Rev. Bonds (Daughters of Charity Health System), Series 2005-G, 5.25% 2012		1,500			1,577
Statewide Communities Dev. Auth., Rev. Bonds (Kaiser Permanente), Series 2002-D, 4.35% 2036 (put 2007)		220			220
Statewide Communities Dev. Auth., Rev. Bonds (Kaiser Permanente), Series 2004-I, 3.45% 2035 (put 2011)		1,000			977
Statewide Communities Dev. Auth., Rev. Bonds (Redlands Community Hospital), Series 2005-A, RADIAN insured, 5.00% 2014		1,300			1,372
Statewide Communities Dev. Auth., Student Housing Rev. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase II), Series 2004, 5.50% 2013		1,750			1,892
Statewide Communities Dev. Auth., Student Housing Rev. Bonds (CHF-Irvine, LLC-UCI East Campus Apartments, Phase II), Series 2004, 5.50% 2014		1,975			2,153
Tobacco Securitization Auth., Tobacco Settlement Asset-backed Bonds (San Diego County Tobacco Asset Securitization Corp.), Series 2001-A, 5.25% 2027 (preref. 2012)		4,105			4,403
City of Torrance, Hospital Rev. Bonds (Torrance Memorial Medical Center), Series 2001-A, 4.70% 2009		1,010			1,028
City of Torrance, Hospital Rev. Bonds (Torrance Memorial Medical Center), Series 2001-A, 4.80% 2010		940			965
Val Verde Unified School Dist., Certs. of Part. (Ref. and School Construction Project), Series 2005-B, FGIC insured, 5.00% 2014		1,000			1,073
Dept. of Water Resources, Power Supply Rev. Bonds, Series 2002-A, FSA insured, 5.25% 2012		1,000			1,074
					61,972


COLORADO — 2.30%
Arapahoe County, Ref. Certs. of Part. (Sheriff/Coroner Building and Centrepoint Plaza),
Series 2006, AMBAC insured, 5.00% 2015		2,000			2,145
City and County of Denver, Airport System Rev. Ref. Bonds, Series 2002-E, AMT, FGIC insured, 5.00% 2011		1,000			1,044
City and County of Denver, Airport System Rev. Ref. Bonds, Series 2002-E, AMT, FGIC insured, 5.00% 2012		1,500			1,573
Denver Convention Center Hotel Auth., Rev. Bonds, Series 2003-A, XLCA insured, 5.00% 2012		4,000			4,246
EagleBend Affordable Housing Corp., Rev. Ref. Bonds (Multi-family Housing Project),
Series 1997-A, 5.75% 2007 (escrowed to maturity)		295			297
Health Facs. Auth., Health Facs. Rev. Bonds (Evangelical Lutheran Good Samaritan Society Project), Series 2006, 5.00% 2015		1,420			1,484
Health Facs. Auth., Rev. Bonds (Evangelical Lutheran Good Samaritan Society Project), Series 2002, 5.00% 2010		1,000			1,029
Health Facs. Auth., Rev. Bonds (Evangelical Lutheran Good Samaritan Society Project), Series 2002, 5.00% 2011		1,100			1,138
Health Facs. Auth., Hospital Rev. Ref. Bonds (Adventist Health System/Sunbelt Obligated Group), Series 2006-F, 5.00% 2015		1,420			1,493
Health Facs. Auth., Hospital Rev. Ref. Bonds (Longmont United Hospital Project),
Series 2006-B, RADIAN insured, 5.25% 2014		1,810			1,945
Health Facs. Auth., Rev. Bonds (Catholic Health Initiatives), Series 2002-A, 5.00% 2012 (escrowed to maturity)		1,000			1,053
Health Facs. Auth., Rev. Bonds (Covenant Retirement Communities, Inc.), Series 2002-B, 5.25% 2011		1,450			1,507
Health Facs. Auth., Rev. Bonds (Covenant Retirement Communities, Inc.), Series 2005, 5.00% 2010		500			512
Health Facs. Auth., Rev. Bonds (Covenant Retirement Communities, Inc.), Series 2005, 5.00% 2014		1,320			1,367
Health Facs. Auth., Rev. Bonds (Covenant Retirement Communities, Inc.), Series 2005, 5.00% 2015		1,145			1,188
Housing and Fin. Auth., Single-family Program Bonds, Series 1998-D-3, 6.125% 2023		570			574
					22,595


CONNECTICUT — 0.56%
Higher Education Supplemental Loan Auth., Rev. Bonds (Connecticut Family Education Loan Program), Series 2005-A, AMT, MBIA insured, 4.20% 2014		1,000			1,006
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds, Series 1997-B, 5.55% 2008¹		1,000			1,018
Mashantucket (Western) Pequot Tribe, Special Rev. Bonds, Series 1997-B, 5.70% 2012¹		3,400			3,489
					5,513


DELAWARE — 0.21%
Econ. Dev. Auth., Pollution Control Rev. Ref. Bonds (Delmarva Power & Light Co. Project),
Series 2001-C, AMBAC insured, 4.90% 2026 (put 2011)		2,000			2,076



DISTRICT OF COLUMBIA — 1.02%
Certs. of Part., Lease Rev. Bonds, Series 2002, AMBAC insured, 5.25% 2010		1,000			1,038
Certs. of Part., Lease Rev. Bonds, Series 2002, AMBAC insured, 5.25% 2013		2,000			2,135
Certs. of Part., Lease Rev. Bonds, Series 2006, FGIC insured, 5.25% 2014		1,000			1,077
Friendship Public Charter School, Inc. Issue Rev. Bonds, Series 2003, ACA insured, 5.00% 2012		1,000			1,045
G.O. Ref. Bonds, Series 1993-B-2, FSA insured, 5.50% 2010		1,000			1,045
G.O. Ref. Bonds, Series 1999-B, FSA insured, 5.50% 2009		695			721
G.O. Ref. Bonds, Series 1999-B, FSA insured, 5.50% 2009 (escrowed to maturity)		195			203
Hospital Rev. Ref. Bonds (Medlantic Healthcare Group, Inc. Issue), Series 1997-A,
MBIA insured, 6.00% 2007 (escrowed to maturity)		1,250			1,265
Tax Increment Rev. Bonds (Gallery Place Project), Series 2002, FSA insured, 5.25% 2010		1,400			1,461
					9,990


FLORIDA — 4.11%
Dept. of Children and Family Services, Certs. of Part. (Florida Civil Commitment Center Project), Series 2006, MBIA insured, 5.00% 2016		1,000			1,076
City of Coral Gables, Health Facs. Auth., Hospital Rev. Bonds (Baptist Health South Florida Obligated Group), Series 2004, FSA insured, 5.00% 2034 (put 2014)		4,000			4,235
Escambia County Health Facs. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2003-A, 5.25% 2012		1,535			1,640
Highlands County Health Facs. Auth., Hospital Rev. Bonds (Adventist Health System/Sunbelt Obligated Group), Series 2002-B, 5.00% 2010		1,000			1,041
Highlands County Health Facs. Auth., Hospital Rev. Bonds (Adventist Health System/Sunbelt Obligated Group), Series 2005-I, 5.00% 2029 (put 2009)		1,000			1,026
Highlands County Health Facs. Auth., Hospital Rev. Ref. Bonds (Adventist Health System/Sunbelt Obligated Group), Series 2005-B, 5.00% 2013		1,250			1,312
Highlands County Health Facs. Auth., Hospital Rev. Ref. Bonds (Adventist Health System/Sunbelt Obligated Group), Series 2005-B, 5.00% 2014		1,170			1,231
Highlands County Health Facs. Auth., Hospital Rev. Ref. Bonds (Adventist Health System/Sunbelt Obligated Group), Series 2006-G, 5.00% 2015		1,000			1,055
Hillsborough County Industrial Dev. Auth., Hospital Rev. Ref. Bonds (Tampa General Hospital Project), Series 2003-A, 5.00% 2010		2,905			2,999
Hillsborough County Industrial Dev. Auth., Hospital Rev. Ref. Bonds (Tampa General Hospital Project), Series 2003-A, 5.00% 2012		2,195			2,293
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Bonds (Shell Point/Alliance Obligated Group, Shell Point Village Project), Series 1999-A, 5.25% 2007		1,250			1,258
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Bonds (Shell Point/Alliance Obligated Group, Shell Point Village Project), Series 1999-A, 5.50% 2008		1,000			1,017
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Bonds (Shell Point/Alliance Obligated Group, Shell Point Village Project), Series 1999-A, 5.50% 2010		1,200			1,239
Lee County Industrial Dev. Auth., Healthcare Facs. Rev. Bonds (Shell Point/Alliance Obligated Group, Shell Point Village Project), Series 1999-A, 5.75% 2012		1,800			1,870
Lee County, Solid Waste System Rev. Bonds, Series 2006-A, AMT, AMBAC insured, 5.00% 2015		2,260			2,401
Lee County, Solid Waste System Rev. Ref. Bonds, Series 2001, AMT, MBIA insured, 5.25% 2009		1,000			1,034
Lee County, Solid Waste System Rev. Ref. Bonds, Series 2001, AMT, MBIA insured, 5.25% 2010		2,000			2,089
School Board of Miami-Dade County, Certs. of Part., Series 2003-B, MBIA insured, 5.00% 2031 (put 2011)		2,915			3,037
School Board of Miami-Dade County, Certs. of Part., Series 2003-C, MBIA insured, 5.00% 2027 (put 2008)		1,000			1,020
Palm Beach County, Public Improvement Rev. Ref. Bonds (Convention Center Project),
Series 2004, FGIC insured, 5.00% 2030 (put 2011)		4,650			4,852
Polk County, Transportation Improvement Rev. Ref. Bonds, Series 2004, FSA insured, 5.00% 2025 (put 2010)		2,500			2,597
					40,322


GEORGIA — 1.25%
City of Atlanta, Water and Wastewater Rev. Bonds, Series 2004, FSA insured, 5.00% 2012		2,000			2,121
Housing Auth. of the County of DeKalb, Multi-family Housing Rev. Ref. Bonds (Park at Briarcliff Apartments Project), Series 1998-A, 4.55% 2028 (put 2008)		995			1,000
Gainesville Redev. Auth., Educational Facs. Rev. Ref. Bonds (Riverside Military Academy Project), Series 2007, 5.00% 2010		1,000			1,020
Gainesville Redev. Auth., Educational Facs. Rev. Ref. Bonds (Riverside Military Academy Project), Series 2007, 5.00% 2012		1,000			1,029
Gainesville Redev. Auth., Educational Facs. Rev. Ref. Bonds (Riverside Military Academy Project), Series 2007, 5.00% 2014		1,715			1,775
Main Street Natural Gas, Inc., Gas Project Rev. Bonds, Series 2006-A, 5.00% 2016		2,000			2,133
Main Street Natural Gas, Inc., Gas Project Rev. Bonds, Series 2006-B, 5.00% 2016		2,000			2,133
Savannah Econ. Dev. Auth., Pollution Control Rev. Ref. Bonds (International Paper Co. Projects), Series 2003-A, 5.10% 2014		1,000			1,050
					12,261


GUAM — 0.22%
Guam Education Fncg. Foundation, Certs. of Part. (Guam Public School Facs. Project), Series 2006-A, 5.00% 2014		1,000			1,057
Guam Education Fncg. Foundation, Certs. of Part. (Guam Public School Facs. Project), Series 2006-A, 5.00% 2016		1,000			1,066
					2,123


IDAHO — 0.64%
Housing and Fin. Assn., Single-family Mortgage Bonds, Series 1998-C-2, AMT, 5.25% 2011		120			120
Housing and Fin. Assn., Single-family Mortgage Bonds, Series 1998-E-3, AMT, 5.125% 2011		155			156
Housing and Fin. Assn., Single-family Mortgage Bonds, Series 1998-H, AMT, 4.65% 2012		240			240
Housing and Fin. Assn., Single-family Mortgage Bonds, Series 1998-I-2, AMT, 4.70% 2012		115			115
Housing and Fin. Assn., Single-family Mortgage Bonds, Series 2001-E, Class III, AMT, 5.40% 2021		535			548
Housing and Fin. Assn., Single-family Mortgage Bonds, Series 2002-F, Class III, AMT, 4.875% 2023		1,670			1,676
Housing and Fin. Assn., Single-family Mortgage Bonds, Series 2003-C, Class III, AMT, 4.50% 2023		950			929
Housing and Fin. Assn., Single-family Mortgage Bonds, Series 2003-E, Class III, AMT, 5.15% 2023		910			932
Housing and Fin. Assn., Single-family Mortgage Bonds, Series 2006-G, Class III, AMT, 4.60% 2028		1,600			1,575
					6,291


ILLINOIS — 5.87%
Village of Cary, McHenry County, Special Service Area Number One, Special Tax Ref. Bonds,
Series 2006, RADIAN insured, 4.40% 2016		935			945
Village of Cary, McHenry County, Special Service Area Number One, Special Tax Ref. Bonds,
Series 2006, RADIAN insured, 4.40% 2016		800			805
Chicago Board of Education, Unlimited Tax G.O. Bonds (Dedicated Revenues), Series 2001-C, FSA insured, 5.25% 2010		1,000			1,052
City of Chicago, Gas Supply Rev. Ref. Bonds (Peoples Gas Light and Coke Co. Project), Series 2000-B, 4.75% 2030 (put 2014)		6,500			6,641
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2005-B, FGIC insured, 5.25% 2015		1,500			1,630
City of Chicago, O’Hare International Airport, General Airport Rev. Ref. Bonds, Series 2005-B, MBIA insured, 5.25% 2016		1,000			1,092
City of Chicago, O’Hare International Airport, Passenger Fac. Charge Rev. Bonds,
Series 1996-A, AMBAC insured, 5.60% 2010		1,000			1,011
County of DuPage, Limited Tax G.O. Bonds (Courthouse Project), Series 2006, 5.00% 2016		1,570			1,695
County of DuPage, Transportation Rev. Ref. Bonds, Series 2005, FSA insured, 5.00% 2014		1,000			1,067
Educational Facs. Auth., Rev. Bonds (Art Institute of Chicago), Series 2000-A, 4.25% 2034 (put 2014)		1,430			1,430
Educational Facs. Auth., Rev. Bonds (Field Museum of Natural History), Series 2002, 4.05% 2036 (put 2011)		4,000			3,972
Fin. Auth., Rev. Ref. Bonds (Chicago Charter School Project), Series 2006, 5.00% 2014		725			755
Fin. Auth., Rev. Ref. Bonds (Lutheran Hillside Village), Series 2006, 5.00% 2016		2,665			2,797
Fin. Auth., Rev. Ref. Bonds (OSF Healthcare System), Series 2004, 5.00% 2007		3,000			3,026
Health Facs. Auth., Rev. Bonds (OSF Healthcare System), Series 1999, 5.50% 2008		1,000			1,024
G.O. Bonds, Illinois FIRST, Series of December 2002, 5.25% 2010		2,000			2,104
G.O. Ref. Bonds, Series of June 2006, 5.00% 2015		7,750			8,317
G.O. Bonds, Series of April 1998, FSA insured, 5.50% 2009 (preref. 2008)		1,025			1,056
Health Facs. Auth., Rev. Bonds (Advocate Health Care Network), Series 2000, 6.125% 2011 (preref. 2010)		1,000			1,081
Health Facs. Auth., Rev. Bonds (Centegra Health System), Series 1998, 5.50% 2007		1,230			1,241
Village of Hodgkins, Cook County, Tax Increment Rev. Ref. Bonds, Series 2005, 5.00% 2009		1,000			1,017
Village of Hodgkins, Cook County, Tax Increment Rev. Ref. Bonds, Series 2005, 5.00% 2012		1,000			1,039
Village of Hodgkins, Cook County, Tax Increment Rev. Ref. Bonds, Series 2005, 5.00% 2013		1,000			1,044
Village of Hodgkins, Cook County, Tax Increment Rev. Ref. Bonds, Series 2005, 5.00% 2014		2,150			2,257
Housing Dev. Auth., Housing Bonds, Series G, 4.15% 2014		1,000			1,004
Housing Dev. Auth., Housing Bonds, Series G, 4.15% 2014		915			918
Housing Dev. Auth., Housing Bonds, Series K, 4.20% 2014		815			821
Housing Dev. Auth., Housing Bonds, Series K, 4.25% 2015		855			862
Indian Prairie Community, Unit School Dist. No. 204, DuPage and Will Counties, School Building Bonds (Naperville/Aurora), Series 1998, 5.25% 2011 (preref. 2008)		1,275			1,312
Board of Trustees of the University of Illinois, Certs. of Part. (Academic Facs. Projects),
Series 2006-A, AMBAC insured, 5.00% 2014		2,000			2,129
Board of Trustees of the University of Illinois, Certs. of Part. (Academic Facs. Projects),
Series 2006-A, AMBAC insured, 5.00% 2015		2,315			2,478
					57,622


INDIANA — 1.67%
Health and Educational Fac. Fncg. Auth., Hospital Rev. Ref. Bonds (Clarian Health Obligated Group), Series 2006-B, 5.00% 2012		1,650			1,710
Health and Educational Fac. Fncg. Auth., Hospital Rev. Ref. Bonds (Clarian Health Obligated Group), Series 2006-B, 5.00% 2014		1,060			1,105
Health and Educational Fac. Fncg. Auth., Hospital Rev. Ref. Bonds (Clarian Health Obligated Group), Series 2006-B, 5.00% 2015		1,500			1,567
Health and Educational Fac. Fncg. Auth., Hospital Rev. Ref. Bonds (Clarian Health Obligated Group), Series 2006-B, 5.00% 2016		1,090			1,141
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Charity Obligated Group), Series 1999-D, 5.50% 2008		1,000			1,027
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Charity Obligated Group), Series 1999-D, 5.50% 2011		2,000			2,100
Health Fac. Fncg. Auth., Rev. Bonds (Ascension Health Credit Group), Series 2002-F, 5.50% 2011		1,640			1,759
Health Fac. Fncg. Auth., Hospital Rev. Bonds (Community Health Network Project),
Series 2005-A, AMBAC insured, 5.00% 2012		1,195			1,258
Trustees of Ivy Tech State College, Student Fee Bonds, Series H, AMBAC insured, 5.00% 2011		2,000			2,096
Trustees of Ivy Tech State College, Student Fee Bonds, Series H, AMBAC insured, 5.00% 2012		1,000			1,056
State Revolving Fund Program Bonds, Series 2001-A, 5.50% 2011		1,500			1,604
					16,423


IOWA — 0.21%
Fin. Auth., Hospital Rev. Bonds (Mercy Medical Center Project), Series 1999, FSA insured, 5.30% 2009		1,000			1,036
Tobacco Settlement Auth., Asset-backed Bonds, Series 2001-B, 5.50% 2014 (preref. 2011)		1,000			1,073
					2,109


KANSAS — 0.25%
Unified Government of Wyandotte County/Kansas City, Tax-Exempt Sales Tax Special Obligation Rev. Ref. Bonds (Redev. Project Area B), Series 2005-B, 3.75% 2012		1,000			1,000
Unified Government of Wyandotte County/Kansas City, Tax-Exempt Sales Tax Special Obligation Rev. Ref. Bonds (Redev. Project Area B), Series 2005-C, 3.85% 2013		1,500			1,492
					2,492


KENTUCKY — 0.33%
Econ. Dev. Fin. Auth., Health System Rev. Bonds (Norton Healthcare, Inc.), Series 2000, 6.125% 2010		1,715			1,777
Econ. Dev. Fin. Auth., Health System Rev. Bonds (Norton Healthcare, Inc.), Series 2000, 6.125% 2010 (escrowed to maturity)		930			967
Econ. Dev. Fin. Auth., Hospital System Ref. and Improvement Rev. Bonds (Appalachian Regional Healthcare, Inc. Project), Series 1997, 5.50% 2007		465			467
					3,211


LOUISIANA — 0.69%
Housing Fin. Agcy., Multi-family Mortgage Rev. Ref. Bonds (Section 8 Assisted - 202 Elderly Projects), Series 2006-A, 4.75% 2031		4,000			4,023
Military Dept., Custodial Receipts, 5.00% 2014		870			914
Military Dept., Custodial Receipts, 5.00% 2015		1,725			1,815
					6,752


MAINE — 0.10%
Housing Auth., Mortgage Purchase Bonds, Series 2001-E-1, 4.125% 2010		1,000			1,006



MARYLAND — 1.29%
Anne Arundel County, Tax Increment Fncg. Bonds (Parole Town Center Project), Series 2002, 5.00% 2012		2,210			2,229
Community Dev. Administration, Dept. of Housing and Community Dev., Residential Rev. Bonds, Series 2006-F, AMT, 6.00% 2039		2,500			2,678
Health and Higher Educational Facs. Auth., Rev. Ref. Bonds (MedStar Health Issue), Series 2004, 5.00% 2010		1,755			1,811
Health and Higher Educational Facs. Auth., Rev. Ref. Bonds (MedStar Health Issue), Series 2004, 5.00% 2011		1,775			1,845
Health and Higher Educational Facs. Auth., Rev. Ref. Bonds (MedStar Health Issue), Series 2004, 5.00% 2013		1,530			1,606
Prince George’s County, Special Obligation Bonds (Woodview Village Infrastructure Improvements), Series 1997-A, 4.25% 2009		685			681
Prince George’s County, Special Obligation Bonds (Woodview Village Infrastructure Improvements), Series 1997-A, 4.30% 2011		560			557
Prince George’s County, Special Obligation Bonds (Woodview Village Infrastructure Improvements), Series 1997-A, 4.40% 2015		1,275			1,272
					12,679


MASSACHUSETTS — 1.92%
Dev. Fin. Agcy., Higher Education Rev. Bonds (Emerson College Issue), Series 2006-A, 5.00% 2015		1,000			1,065
Educational Fncg. Auth., Education Loan Rev. Ref. Bonds, Issue G, Series 2000-A, AMT, MBIA insured, 5.55% 2008		1,180			1,202
Federal Highway Grant Anticipation Notes, Series 1998-A, 5.50% 2013		1,000			1,098
G.O. Bonds, Consolidated Loan of 2003, Series A, 5.25% 2013		2,000			2,146
G.O. Bonds, Consolidated Loan of 2004, Series A, 5.00% 2012		2,000			2,115
Health and Educational Facs. Auth., Rev. Bonds (Partners HealthCare System Issue), Series E, 5.00% 2010		1,000			1,036
Health and Educational Facs. Auth., Rev. Bonds (Partners HealthCare System Issue), Series E, 5.00% 2011		1,000			1,044
Health and Educational Facs. Auth., Rev. Bonds (Partners HealthCare System Issue), Series E, 5.00% 2012		1,500			1,576
Housing Fin. Agcy., Housing Bonds, Series 2003-D, 4.20% 2010		2,940			2,944
Massachusetts Bay Transportation Auth., Sales Tax Bonds, Series 2004-C, 5.25% 2014		3,000			3,274
Water Pollution Abatement Trust, Pool Program Bonds, Series 11, 5.00% 2015		1,250			1,353
					18,853


MICHIGAN — 3.73%
Certs. of Part. (New Center Dev. Inc.), Series 2004-A, MBIA insured, 5.00% 2031 (put 2011)		3,000			3,148
Higher Education Student Loan Auth., Student Loan Rev. Ref. Bonds, Series XVII-F, AMT, AMBAC insured, 4.45% 2010		2,000			2,028
Hospital Fin. Auth., Hospital Rev. and Ref. Bonds (Henry Ford Health System), Series 2006-A, 5.00% 2015		2,000			2,124
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Henry Ford Health System), Series 2003-A, 5.25% 2010 (escrowed to maturity)		2,000			2,082
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Henry Ford Health System), Series 2003-A, 5.25% 2011 (escrowed to maturity)		2,000			2,106
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Henry Ford Hospital), Series 1984-A, AMBAC insured, 6.00% 2011 (escrowed to maturity)		1,250			1,364
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Detroit Medical Center Obligated Group), Series 1993-A, 6.375% 2009		1,015			1,016
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Sinai Hospital of Greater Detroit), Series 1995, 6.00% 2008		225			227
Hospital Fin. Auth., Hospital Rev. Ref. Bonds (Trinity Health Credit Group), Series 2000-A, 5.75% 2007		1,940			1,972
Hospital Fin. Auth., Rev. Ref. Bonds (Hackley Hospital Obligated Group), Series 1998-A, 4.90% 2007		1,140			1,141
Kent Hospital Fin. Auth., Rev. and Ref. Bonds (Spectrum Health), Series 2005-B, 5.00% 2011		2,000			2,086
Kent Hospital Fin. Auth., Rev. Bonds (Spectrum Health), Series 2001-A, 5.25% 2010		2,020			2,096
County of Monroe Hospital Fin. Auth., Hospital Rev. and Ref. Bonds (Mercy Memorial Hospital Corp. Obligated Group), Series 2006, 5.50% 2015		1,120			1,182
County of Monroe Hospital Fin. Auth., Hospital Rev. and Ref. Bonds (Mercy Memorial Hospital Corp. Obligated Group), Series 2006, 5.50% 2016		1,000			1,060
Municipal Bond Auth., Local Government Loan Program Rev. Bonds, Series 2003-C, 5.00% 2010		1,000			1,037
City of Saginaw Hospital Fin. Auth., Rev. Ref. Bonds (Covenant Medical Center, Inc.), Series 2004-G, 5.00% 2011		1,395			1,442
City of Saginaw Hospital Fin. Auth., Rev. Ref. Bonds (Covenant Medical Center, Inc.), Series 2004-G, 5.00% 2013		1,040			1,083
Strategic Fund, Limited Obligation Rev. Ref. Bonds (Dow Chemical Co. Project), Series 2003-A, AMT, 5.50% 2028 (put 2013)		3,500			3,736
Strategic Fund, Solid Waste Disposal Limited Obligation Rev. Ref. Bonds (Waste Management, Inc. Project), Series 2004, AMT, 3.00% 2013 (put 2007)		3,000			3,000
Charter County of Wayne, Airport Rev. Ref. Bonds (Detroit Metropolitan Wayne County Airport), Series 2002-D, AMT, FGIC insured, 5.25% 2011		2,530			2,667
					36,597


MINNESOTA — 1.08%
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2006-I, AMT, 5.75% 2038		4,000			4,237
Minneapolis-St. Paul Metropolitan Airports Commission, Airport Rev. Bonds,
Series 2005-B, AMT, AMBAC insured, 5.00% 2015		5,000			5,312
Housing and Redev. Auth. of St. Paul and Minneapolis, Health Care Fac. Rev. Bonds, Series 2003, 5.25% 2010		1,050			1,088
					10,637


MISSOURI — 1.47%
Chesterfield Valley Transportation Dev. Dist. (Chesterfield), Transportation Sales Tax Rev. Bonds, Series 2006, CIFG insured, 4.00% 2026		1,000			996
Health and Educational Facs. Auth., Rev. Bonds (SSM Health Care), Series 2002-A, 5.00% 2011		4,005			4,168
Industrial Dev. Auth. of the City of Lee’s Summit, Health Facs. Rev. Bonds (John Knox Village), Series 2002, 5.75% 2009		1,255			1,295
Industrial Dev. Auth. of the City of Lee’s Summit, Health Facs. Rev. Bonds (John Knox Village), Series 2002, 5.875% 2010		1,325			1,394
Public Building Corp. of the City of Springfield, Leasehold Rev. Improvement Bonds
(Springfield-Branson National Airport Terminal Project), Series 2006-B, AMT, AMBAC insured, 5.00% 2015		2,480			2,630
City of St. Louis, Airport Rev. Ref. Bonds (Lambert-St. Louis International Airport), Series 2003-A, FSA insured, 5.25% 2012		1,000			1,068
City of St. Louis, Airport Rev. Ref. Bonds (Lambert-St. Louis International Airport), Series 2007-A, FSA insured, 5.00% 2016		1,410			1,518
City of St. Louis, Airport Rev. Ref. Bonds (Lambert-St. Louis International Airport),
Series 2007-B, AMT, FSA insured, 5.00% 2015		1,260			1,331
					14,400


MONTANA — 0.58%
Board of Housing, Single-family Mortgage Bonds, Series 2006-B, AMT, 5.50% 2037		2,000			2,098
City of Forsyth, Pollution Control Rev. Ref. Bonds (Avista Corp. Colstrip Project), Series 1999-B, AMT, AMBAC insured, 5.125% 2034 (put 2008)		3,500			3,581
					5,679


NEBRASKA — 0.74%
Investment Fin. Auth., Single-family Housing Rev. Bonds, Series 2002-D, AMT, 3.90% 2009		805			804
Investment Fin. Auth., Single-family Housing Rev. Bonds, Series 2006-D, AMT, 5.50% 2036		2,000			2,101
Omaha Airport Auth., Airport Facs. Rev. Ref. Bonds, Series 2001, FSA insured, 5.50% 2012		1,155			1,222
Public Power Dist., General Rev. Bonds, Series 2005-B-1, FGIC insured, 5.00% 2015		2,875			3,094
					7,221


NEVADA — 1.67%
Clark County, Pollution Control Rev. Ref. Bonds (Southern California Edison Co.), AMT, 3.25% 2031 (put 2009)		3,000			2,923
G.O. (Limited Tax) Capital Improvement and Cultural Affairs Ref. Bonds, Series 2005-A, 5.00% 2015		2,500			2,684
City of Henderson, Health Fac. Rev. Bonds (Catholic Healthcare West Project), Series 2005-B, 5.00% 2008		2,000			2,026
City of Henderson, Health Fac. Rev. Bonds (Catholic Healthcare West), Series 1999-A, 6.20% 2009		305			315
City of Henderson, Health Fac. Rev. Bonds (Catholic Healthcare West), Series 1999-A, 6.20% 2009 (escrowed to maturity)		145			146
Housing Division, Single-family Mortgage Bonds, Series 1998-B-1, 5.20% 2011		145			146
City of Las Vegas, Redev. Agcy., Tax Increment Rev. Ref. Bonds (Fremont Street Project), Series 2003-A, 5.00% 2011		3,450			3,547
City of Las Vegas, Redev. Agcy., Tax Increment Rev. Ref. Bonds (Fremont Street Project), Series 2003-A, 4.50% 2012		3,625			3,657
Reno-Sparks Indian Colony, Governmental Bonds, Series 2006, 4.50% 2015		300			307
Reno-Sparks Indian Colony, Governmental Bonds, Series 2006, 4.50% 2016		685			697
					16,448


NEW JERSEY — 5.47%
Certs. of Part., Series 2004-A, 5.00% 2010		3,500			3,620
Certs. of Part., Series 2004-A, 5.00% 2012		2,000			2,099
Certs. of Part., Series 2004-A, 5.00% 2015		2,000			2,123
Econ. Dev. Auth., School Facs. Construction Bonds, Series 2004-G, 4.00% 2010		3,000			3,020
Educational Facs. Auth., Rider University Issue Rev. Bonds, Series 2002-A, RADIAN insured, 5.25% 2012		1,795			1,887
Health Care Facs. Fncg. Auth., Rev. and Ref. Bonds, Saint Clare’s Hospital, Inc. Issue,
Series 2004-B, MBIA insured, 5.25% 2013		4,315			4,652
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, Series 2003, 4.375% 2019 (preref. 2013)		645			647
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, Series 2003, 6.125% 2024 (preref. 2013)		9,545			10,217
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, Series 2007-1A, 5.00% 2015		5,000			5,160
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, Series 2007-1A, 4.50% 2023		4,000			3,929
Transit Corp., Certs. of Part., Series 2003-A, AMBAC insured, 5.25% 2014		8,000			8,695
Transportation Trust Fund Auth., Transportation System Bonds, Series 2004-B, FGIC insured, 5.25% 2013		4,410			4,781
Transportation Trust Fund Auth., Transportation System Bonds, Series 2005-D, 5.00% 2014 (escrowed to maturity)		2,660			2,859
					53,689


NEW YORK — 4.77%
Castle Rest Residential Health Care Fac., Mortgage Rev. Bonds, Series 1997-A, FHA insured, 4.875% 2007		115			115
Dormitory Auth., Lease Rev. Bonds (State University Educational Facs. Issue),
Series 2003, XLCA insured, 5.25% 2032 (put 2013)		2,000			2,155
Dormitory Auth., Mental Health Services Facs. Improvement Rev. Bonds, Series 1997-B, 6.00% 2007		990			991
Dormitory Auth., Mental Health Services Facs. Improvement Rev. Bonds, Series 1997-B, 6.00% 2007 (escrowed to maturity)		10			10
Dormitory Auth., Rochester General Hospital Insured Rev. Bonds, Series 2005, RADIAN insured, 5.00% 2012		1,175			1,235
Dormitory Auth., Secured Hospital Rev. Ref. Bonds (Wyckoff Heights Medical Center), Series 1998-H, 5.125% 2008		1,000			1,014
Dormitory Auth., State Personal Income Tax Rev. Bonds (Econ. Dev. and Housing), Series 2003-A, 5.00% 2012		2,000			2,126
Dormitory Auth., Third General Resolution Rev. Bonds (State University Educational Facs. Issue), Series 2002-B, 5.25% 2023 (put 2012)		10,000			10,646
Housing Fin. Agcy., Health Facs. Rev. Ref. Bonds (New York City), Series 1996-A, 6.00% 2007		1,000			1,016
Metropolitan Transportation Auth., State Service Contract Ref. Bonds, Series 2002-A, 5.00% 2012		1,000			1,051
Metropolitan Transportation Auth., Transportation Rev. Bonds, Series 2005-C, 5.00% 2012		1,250			1,322
City of New York, G.O. Bonds, Fiscal 2001 Series B, 5.50% 2010		1,000			1,053
City of New York, G.O. Bonds, Fiscal 2001 Series D, 5.50% 2009		1,000			1,040
City of New York, G.O. Bonds, Fiscal 2001 Series F, 5.00% 2010		1,000			1,037
City of New York, G.O. Bonds, Fiscal 2004 Series I, 4.50% 2012		3,000			3,091
City of New York, G.O. Bonds, Fiscal 2005 Series H, 5.00% 2011		1,250			1,307
City of New York, G.O. Bonds, Fiscal 2005 Series J, 5.00% 2013		1,000			1,056
City of New York, G.O. Bonds, Fiscal 2002 Series G, 5.25% 2008 (escrowed to maturity)		110			113
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (Terminal One Group Assn., LP Project), Series 2005, AMT, 5.00% 2013		1,000			1,041
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (Terminal One Group Assn., LP Project), Series 2005, AMT, 5.50% 2014		1,000			1,075
New York City Industrial Dev. Agcy., Special Fac. Rev. Bonds (Terminal One Group Assn., LP Project), Series 2005, AMT, 5.50% 2016		3,000			3,250
New York City Transitional Fin. Auth., Future Tax Secured Ref. Bonds, Series 2003-A, 5.50%/14.00% 2026²		5,000			5,349
Urban Dev. Corp., Correctional and Youth Facs. Service Contract Rev. Bonds (Empire State Dev. Corp.), Series 2002-A, 5.50% 2017 (preref. 2011)		175			186
Urban Dev. Corp., Correctional and Youth Facs. Service Contract Rev. Bonds (Empire State Dev. Corp.), Series 2002-A, 5.00% 2017 (put 2011)		3,000			3,121
Urban Dev. Corp., Correctional and Youth Facs. Service Contract Rev. Bonds (Empire State Dev. Corp.), Series 2002-A, 5.50% 2017 (put 2011)		2,325			2,461
					46,861


NORTH CAROLINA — 3.21%
City of Charlotte, Airport Rev. Bonds, Series 1999-B, AMT, MBIA insured, 5.125% 2009		35			36
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 1993-B, 7.00% 2008		1,950			2,005
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 1993-B, 6.125% 2009		1,000			1,041
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 2003-A, 5.50% 2010		1,500			1,565
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 2003-A, 5.50% 2011		1,000			1,056
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 2003-A, 5.50% 2012		2,155			2,300
Eastern Municipal Power Agcy., Power System Rev. Ref. Bonds, Series 2003-F, 5.50% 2016		1,000			1,070
Infrastructure Fin. Corp., Certs. of Part. (2005 Capital Improvements), Series 2005-A, 5.00% 2013		3,005			3,179
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 1992, MBIA insured, 6.00% 2010		3,000			3,183
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 1997-A, MBIA insured, 5.125% 2011		2,750			2,808
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 1999-B, 6.50% 2009		1,660			1,738
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 1999-B, 6.625% 2010		2,500			2,684
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 2003-A, 5.50% 2012		2,500			2,668
Municipal Power Agcy. No. 1, Catawba Electric Rev. Bonds, Series 2003-A, 5.50% 2013		2,250			2,422
Onslow County Hospital Auth., FHA insured Mortgage Rev. Bonds (Onslow Memorial Hospital Project),
Series 2006, MBIA insured, 5.00% 2015		740			793
Raleigh-Durham Airport Auth., Airport Rev. Bonds, Series 2005-B, AMT, AMBAC insured, 5.00% 2015		2,835			3,002
					31,550


OHIO — 2.87%
County of Hamilton, Healthcare Rev. Ref. Bonds (Life Enriching Communities Project), Series 2006-A, 5.00% 2013		1,260			1,298
County of Hamilton, Healthcare Rev. Ref. Bonds (Life Enriching Communities Project), Series 2006-A, 5.00% 2014		1,250			1,289
Higher Educational Fac. Commission, Rev. Bonds (Kenyon College 2002 Project), 4.30% 2037 (put 2010)		2,000			2,011
Higher Educational Fac. Commission, Rev. Bonds (Kenyon College 2002 Project), 4.60% 2037 (put 2012)		2,000			2,048
Housing Fin. Agcy., Residential Mortgage Rev. Bonds, Series 2006-E, AMT, 5.375% 2037		2,000			2,128
County of Knox, Hospital Facs. Rev. Ref. Bonds (Knox Community Hospital), Series 1998, RADIAN insured, 4.70% 2008		1,155			1,168
County of Lorain, Hospital Facs. Rev. Bonds (Catholic Healthcare Partners), Series 2002-A, 5.50% 2011		2,040			2,169
County of Lorain, Hospital Facs. Rev. Bonds (Catholic Healthcare Partners), Series 2002-A, 5.50% 2012		2,150			2,307
County of Lorain, Hospital Facs. Rev. Ref. and Improvement Bonds (Catholic Healthcare Partners), Series 2001-A, 5.25% 2009		1,170			1,209
County of Lorain, Hospital Facs. Rev. Ref. and Improvement Bonds (Catholic Healthcare Partners), Series 2001-A, 5.25% 2010		2,275			2,370
County of Lucas, Hospital Rev. Ref. Bonds (ProMedica Healthcare Obligated Group), Series 2005-B, AMBAC insured, 5.00% 2011		2,000			2,096
County of Lucas, Hospital Rev. Ref. Bonds (ProMedica Healthcare Obligated Group), Series 2005-B, AMBAC insured, 5.00% 2012		2,560			2,700
County of Miami, Hospital Facs. Rev. Ref. and Improvement Bonds (Upper Valley Medical Center), Series 2006, 5.25% 2014		1,000			1,054
County of Miami, Hospital Facs. Rev. Ref. and Improvement Bonds (Upper Valley Medical Center), Series 2006, 5.25% 2016		1,815			1,926
Municipal Advisory Council, Beneficial Interest Ref. Certs. (Municipal Electric Generation Agcy. Joint Venture 5 - OMEGA JV5), AMBAC insured, 5.00% 2015		2,290			2,438
					28,211


OKLAHOMA — 0.36%
Cherokee Nation, Health Care System Bonds, Series 2006, ACA insured, 4.10% 2011¹		1,200			1,198
Industries Auth., Health System Rev. Ref. Bonds (Obligated Group consisting of INTEGRIS
Baptist Medical Center, Inc., INTEGRIS South Oklahoma City Hospital Corp. and INTEGRIS Rural Health, Inc.),
Series 1995-D, AMBAC insured, 6.00% 2009		1,240			1,304
Tulsa County Industrial Auth., Health Care Rev. Bonds (Saint Francis Health System, Inc.), Series 2006, 5.00% 2015		1,000			1,061
					3,563


PENNSYLVANIA — 1.83%
Harrisburg Auth., Dauphin County, Recovery Fac. Rev. Bonds, Series D, Subseries D-2, FSA insured, 5.00% 2033 (put 2013)		6,500			6,899
Higher Educational Facs. Auth. (Commonwealth of Pennsylvania), Health System Rev. Bonds (University of Pennsylvania), Series 2005-A, AMBAC insured, 5.00% 2014		2,000			2,140
Housing Fin. Agcy., Single-family Mortgage Rev. Bonds, Series 2002-74, AMT, 4.25% 2012		910			913
Housing Fin. Agcy., Single-family Mortgage Rev. Bonds, Series 2006-93-A, AMT, 5.75% 2037		2,230			2,361
Montgomery County Industrial Dev. Auth., Retirement Communities Rev. Ref. Bonds (ACTS Retirement - Life Communities, Inc. Obligated Group), Series 2006-B, 5.00% 2015		2,755			2,907
Montgomery County Industrial Dev. Auth., Retirement Communities Rev. Ref. Bonds (ACTS Retirement - Life Communities, Inc. Obligated Group), Series 2006-B, 5.00% 2016		2,570			2,716
					17,936


PUERTO RICO — 1.26%
Children’s Trust Fund, Tobacco Settlement Asset-backed Bonds, Series 2000, 5.75% 2020 (preref. 2010)		2,735			2,835
Public Buildings Auth., Government Facs. Rev. Bonds, Series D, 5.25% 2036 (preref. 2012)		1,000			1,071
Public Fin. Corp., Commonwealth Appropriation Bonds, Series 2004-A, 5.75% 2027 (put 2012)		6,000			6,428
Public Fin. Corp., Commonwealth Appropriation Bonds, Series 2004-A, FGIC insured, 5.25% 2031 (put 2012)		1,000			1,064
Public Improvement G.O. Ref. Bonds, Series 2003-C, 5.00% 2018 (put 2008)		1,000			1,014
					12,412


RHODE ISLAND — 0.91%
Health and Educational Building Corp., Hospital Fncg. Rev. Bonds (Lifespan Obligated Group Issue), Series 2002, 5.75% 2009		1,340			1,391
Health and Educational Building Corp., Hospital Fncg. Rev. Ref. Bonds (Lifespan Obligated Group Issue), Series 2006-A, FSA insured, 5.00% 2015		2,635			2,827
City of Providence, Special Obligation Tax Increment Ref. Bonds, Series E, RADIAN insured, 5.00% 2011		2,000			2,079
City of Providence, Special Obligation Tax Increment Ref. Bonds, Series E, RADIAN insured, 5.00% 2014		1,250			1,321
City of Providence, Special Obligation Tax Increment Ref. Bonds, Series E, RADIAN insured, 5.00% 2015		1,250			1,326
					8,944


SOUTH CAROLINA — 0.23%
Housing Fin. and Dev. Auth. Mortgage Rev. Bonds, Series 2000-A-2, AMT, FSA insured, 5.875% 2009		620			628
Tobacco Settlement Rev. Management Auth., Tobacco Settlement Asset-backed Bonds, Series 2001-B, 6.00% 2022		1,500			1,599
					2,227


SOUTH DAKOTA — 0.27%
Education Loans Incorporated, Student Loan Asset-backed Callable Notes, Series 1998-1, AMT, 4.95% 2010		1,500			1,536
Housing Dev. Auth., Multiple Purpose Bonds, Series 2002-A, FSA insured, 4.15% 2009		1,135			1,142
					2,678


TENNESSEE — 3.35%
Housing Dev. Agcy., Homeownership Program Bonds, Issue 2006-1, AMT, 5.75% 2036		1,500			1,592
Memphis-Shelby County Airport Auth., Special Facs. Rev. Ref. Bonds (Federal Express Corp.), Series 2001, 5.00% 2009		5,050			5,135
Memphis-Shelby County Airport Auth., Special Facs. Rev. Ref. Bonds (Federal Express Corp.), Series 2002, 5.05% 2012		2,440			2,552
Health, Educational and Housing Fac. Board of the County of Shelby, Rev. Bonds (Baptist Memorial Health Care), Series 2004-A, 5.00% 2020 (put 2008)		2,500			2,543
Health, Educational and Housing Facs. Board of the County of Sullivan, Hospital Rev. Bonds
(Wellmont Health System Project), Series 2002, 5.75% 2007 (escrowed to maturity)		1,555			1,572
Health, Educational and Housing Facs. Board of the County of Sullivan, Hospital Rev. Ref. Bonds (Wellmont Health System Project), Series 2003, 5.00% 2007		1,000			1,003
Health, Educational and Housing Facs. Board of the County of Sullivan, Hospital Rev. Ref. Bonds (Wellmont Health System Project), Series 2003, RADIAN insured, 5.00% 2009		2,000			2,040
Tennessee Energy Acquisition Corp., Gas Project Rev. Bonds, Series 2006-A, 5.00% 2013		500			529
Tennessee Energy Acquisition Corp., Gas Project Rev. Bonds, Series 2006-A, 5.00% 2014		5,000			5,315
Tennessee Energy Acquisition Corp., Gas Project Rev. Bonds, Series 2006-A, 5.00% 2015		10,000			10,669
					32,950


TEXAS — 18.08%
Angelina and Neches River Auth., Pollution Control Rev. Ref. Bonds (Temple-Inland Forest Products Corp. Project), Series 1991, 5.65% 2012		1,000			1,017
Austin Convention Enterprises, Inc., Convention Center Hotel Rev. Ref. Bonds, Series 2006-A, XLCA insured, 5.25% 2015		1,280			1,389
City of Austin (Travis and Williamson Counties), Public Improvement Ref. Bonds, Series 2003, 5.00% 2012		1,000			1,058
Bell County Health Facs. Dev. Corp., Retirement Fac. Rev. Bonds (Buckner Retirement Services, Inc. Obligated Group Project), Series 1998, 5.00% 2007		1,470			1,481
Brazos River Harbor Navigation Dist. of Brazoria County, Environmental Facs. Rev. Bonds
(Dow Chemical Co. Project), Series 2002-A-4, AMT, 5.20% 2033 (put 2008)		2,000			2,032
Brazos River Auth., Pollution Control Rev. Ref. Bonds (TXU Electric Co. Project), Series 2001-C, AMT, 5.75% 2036 (put 2011)		1,780			1,885
Sabine River Auth., Pollution Control Rev. Ref. Bonds (TXU Electric Co. Project), Series 2001-A, 5.50% 2022 (put 2011)		2,000			2,115
Sabine River Auth., Pollution Control Rev. Ref. Bonds (TXU Electric Co. Project), Series 2001-B, AMT, 5.75% 2030 (put 2011)		4,675			4,952
Brownsville Independent School Dist. (Cameron County), Unlimited Tax School Building Bonds, Series 2006, 5.00% 2015		2,235			2,396
Brownsville Independent School Dist. (Cameron County), Unlimited Tax School Building Bonds, Series 2006, 5.00% 2016		2,000			2,149
Canadian River Municipal Water Auth., Contract Rev. Ref. Bonds (Conjunctive Use Groundwater Supply Project), Series 2005, AMBAC insured, 5.00% 2014		2,045			2,180
Central Texas Regional Mobility Auth., Rev. Bonds, Series 2005, FGIC insured, 0%/4.20% 2015²		1,700			1,267
Clint Independent School Dist. (El Paso County), Unlimited Tax School Building Bonds, Series 2006, 5.00% 2015		1,025			1,102
Clint Independent School Dist. (El Paso County), Unlimited Tax School Building Bonds, Series 2006, 5.00% 2016		1,080			1,163
College Student Loan Bonds, Series 2000, AMT, 5.50% 2010		1,000			1,050
Industrial Dev. Corp. of Port of Corpus Christi, Rev. Ref. Bonds (Valero Refining and Marketing Co. Project), Series 1997-D, AMT, 5.125% 2009		1,000			1,035
Cypress-Fairbanks Independent School Dist., Unlimited Tax Ref. and Schoolhouse Bonds, Series 2001, 5.25% 2011		1,000			1,052
City of Dallas (Dallas, Denton, Collin and Rockwall Counties), G.O. Bonds, Series 2005, 5.00% 2014		5,090			5,439
City of Dallas (Dallas, Denton, Collin and Rockwall Counties), G.O. Ref. and Improvement Bonds, Series 1998, 5.00% 2012		1,010			1,022
City of Dallas (Dallas, Denton, Collin and Rockwall Counties), G.O. Ref. and Improvement Bonds, Series 1998, 5.00% 2012 (preref. 2008)		990			1,003
City of Dallas (Dallas, Denton, Collin and Rockwall Counties), Waterworks and Sewer System Rev. Ref. Bonds, Series 2005, 5.00% 2015		3,000			3,181
Donna Independent School Dist. (Hidalgo County), Unlimited Tax Ref. Bonds, Series 2005, 5.00% 2014		1,000			1,067
G.O. Bonds (Veterans’ Housing Assistance Program), Fund II Series 2001-A-1, AMT, 4.85% 2014		8,255			8,418
G.O. Bonds, Water Financial Assistance and Ref. Bonds, Series 2003-C, 5.00% 2011		2,205			2,312
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hermann Healthcare System), Series 2004-A, 5.25% 2011		1,500			1,574
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hermann Healthcare System), Series 2004-A, 5.25% 2012		1,750			1,849
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hermann Healthcare System), Series 2004-A, 5.25% 2013		1,000			1,062
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hermann Healthcare System), Series 2004-A, 5.25% 2014		1,500			1,599
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hospital System Project), Series 1997-A, MBIA insured, 6.00% 2009		3,215			3,365
Harris County Health Facs. Dev. Corp., Hospital Rev. Bonds (Memorial Hospital System Project), Series 1997-A, MBIA insured, 6.00% 2010		1,500			1,596
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke’s Episcopal Hospital), Series 2001-A, 5.50% 2010		1,705			1,788
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke’s Episcopal Hospital), Series 2001-A, 5.50% 2011		1,000			1,062
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke’s Episcopal Hospital), Series 2002, 5.00% 2009		700			717
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke’s Episcopal Hospital), Series 2002, 5.00% 2010		735			760
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke’s Episcopal Hospital), Series 2002, 5.00% 2011		770			803
Harris County Health Facs. Dev. Corp., Rev. Bonds (St. Luke’s Episcopal Hospital), Series 2002, 5.00% 2012		810			852
Harris County, G.O. and Rev. Ref. Bonds, Series 2002, 5.25% 2010		1,585			1,659
Harris County, Permanent Improvement and Ref. Bonds, Series 2003-B, 5.00% 2011		2,000			2,097
Harris County, Tax and Rev. Ref. Bonds, Series 2004-B, FSA insured, 5.00% 2032 (put 2012)		9,250			9,759
City of Houston, Airport System Rev. Bonds, Series 1998-B, AMT, FGIC insured, 5.25% 2012		915			940
City of Houston, Airport System Rev. Bonds, Series 2002-B, FSA insured, 5.25% 2011		2,000			2,107
Port of Houston Auth. of Harris County, Unlimited Tax Forward Ref. Bonds, Series 2006-A, AMT, MBIA insured, 5.00% 2015		1,530			1,626
Jefferson County, Health Facs. Dev. Corp., Baptist Hospitals of Southeast Texas, FHA insured Mortgage Rev. Bonds, Series 2001, AMBAC insured, 4.50% 2010		1,000			1,018
Katy Independent School Dist. (Fort Bend, Harris and Waller Counties), Unlimited Tax School Building Bonds, Series 2002-A, 5.25% 2011		1,000			1,052
Lower Colorado River Auth., Rev. Ref. Bonds, Series 2002, MBIA insured, 5.00% 2010		1,500			1,555
Municipal Gas Acquisition and Supply Corp. I, Gas Supply Rev. Bonds, Series 2006-A, 5.00% 2015		3,500			3,739
North Central Texas Health Facs. Dev. Corp., Hospital Rev. Bonds (Baylor Health Care System Project), Series 2002, 5.50% 2010		1,140			1,191
Tarrant County Health Facs. Dev. Corp., Hospital Rev. Bonds (Baylor Health Care System Project), Series 2002-A, 5.00% 2008		1,635			1,665
North Texas Tollway Auth., Rev. Ref. Bonds (Dallas North Tollway System), Series 2003-B,
AMBAC insured, 5.00% 2038 (preref. 2008)		70			71
North Texas Tollway Auth., Rev. Ref. Bonds (Dallas North Tollway System), Series 2003-C,
FSA insured, 5.00% 2018 (preref. 2008)		20			20
North Texas Tollway Auth., Rev. Ref. Bonds (Dallas North Tollway System), Series 2003-B,
AMBAC insured, 5.00% 2038 (put 2008)		930			946
North Texas Tollway Auth., Rev. Ref. Bonds (Dallas North Tollway System), Series 2003-C,
FSA insured, 5.00% 2018 (put 2008)		980			997
City of Plano (Collin and Denton Counties), G.O. Ref. and Improvement Bonds, Series 2003, 5.00% 2010		1,000			1,040
Sam Rayburn Municipal Power Agcy., Power Supply System Rev. Ref. Bonds, Series 2002-A, 5.50% 2010		4,740			4,922
Sam Rayburn Municipal Power Agcy., Power Supply System Rev. Ref. Bonds, Series 2002-B, RADIAN insured, 5.00% 2009		5,200			5,333
City of San Antonio, Airport System Rev. Improvement Bonds, Series 2002, AMT, FGIC insured, 5.50% 2010		1,000			1,049
City of San Antonio (Bexar County), General Improvement and Ref. Bonds, Series 1998, 5.00% 2009		990			1,002
City of San Antonio, General Improvement and Ref. Bonds, Series 1998, 5.00% 2009 (preref. 2008)		15			15
City of San Antonio, General Improvement and Ref. Bonds, Series 2005, 5.25% 2015		7,000			7,621
City of San Antonio, General Improvement Forward Ref. Bonds, Series 2002, 5.00% 2011		985			1,032
City of San Antonio, General Improvement Forward Ref. Bonds, Series 2002, 5.00% 2011 (escrowed to maturity)		50			53
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, New Series 1997, 5.30% 2011 (preref. 2007)		835			843
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, New Series 1997, 5.30% 2011 (preref. 2009)		1,555			1,602
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, New Series 2002, 5.25% 2011		4,500			4,734
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, New Series 2002, 5.375% 2015		5,480			6,012
City of San Antonio, Electric and Gas Systems Rev. Ref. Bonds, New Series 2003-A, 5.25% 2014		1,500			1,621
City of San Antonio, Electric and Gas Systems Rev. Bonds, New Series 2006-A, 5.00% 2015		1,000			1,072
City of San Antonio, Hotel Occupancy Tax Rev. Ref. Bonds, Series 2004-B, AMBAC insured, 5.00% 2034 (put 2008)		4,000			4,074
Tarrant Regional Water Dist., A Water Control and Improvement Dist., Water Rev. Ref. and Improvement Bonds, Series 2002, FSA insured, 5.00% 2010		1,000			1,035
Tomball Hospital Auth., Hospital Rev. Ref. Bonds, Series 2005, 5.00% 2015		1,355			1,388
Transportation Commission, G.O. Bonds, Series 2005-A, 5.00% 2013		4,250			4,503
Board of Regents of the Texas A&M University System, Rev. Fncg. System Bonds, 5.10% 2010 (preref. 2009)		1,000			1,030
Board of Regents of the Texas State University System, Rev. Fncg. System Rev. Ref. Bonds,
Series 2002, FSA insured, 5.00% 2010		400			414
Board of Regents of the University of Texas System, Rev. Ref. Fncg. System Bonds, Series 2002-B, 5.25% 2012		1,000			1,068
Board of Regents of the University of Texas System, Rev. Ref. Fncg. System Bonds, Series 2002-B, 5.25% 2015		6,670			7,300
Board of Regents of the University of Texas System, Rev. Ref. Fncg. System Bonds, Series 2004-B, 5.25% 2016		10,090			11,093
Waco Health Facs. Dev. Corp., Rev. Ref. Bonds (Hillcrest Health System), Series 2003, MBIA insured, 5.00% 2010		2,040			2,113
Waco Health Facs. Dev. Corp., Rev. Ref. Bonds (Hillcrest Health System), Series 2003, MBIA insured, 5.00% 2011		3,715			3,881
Weslaco Independent School Dist. (Hidalgo County), Unlimited Tax Ref. Bonds, Series 2005, 5.00% 2015		2,360			2,531
					177,615


UTAH — 0.33%
Housing Corp., Single-family Mortgage Bonds, Series 2002-C-2, Class III, AMT, 5.25% 2018		1,475			1,518
Housing Corp., Single-family Mortgage Bonds, Series 2002-D-2, Class III, AMT, 5.00% 2018		735			755
Housing Corp., Single-family Mortgage Bonds, Series 2002-E-2, Class III, AMT, 4.95% 2019		795			797
Housing Fin. Agcy., Single-family Mortgage Bonds (Federally Insured or Guaranteed Mortgage Loans), 1998 Issue D-2, AMT, FHA insured, 5.25% 2012		50			50
Housing Fin. Agcy., Single-family Mortgage Bonds (Federally Insured or Guaranteed Mortgage Loans), 1998 Issue F-2, AMT, FHA insured, 4.25% 2008		80			80
Housing Fin. Agcy., Single-family Mortgage Bonds, Series 1998-E-1, AMT, FHA insured, 5.25% 2012		40			40
					3,240


VIRGINIA — 1.31%
Capital Region Airport Commission, Rev. Ref. Bonds, Series 2004-A, FSA insured, 5.00% 2011		1,335			1,395
Industrial Dev. Auth. of the County of Charles City, Tax-Exempt Solid Waste Disposal Rev. Bonds (Waste Management, Inc.), Series 2002, AMT, 6.25% 2027 (put 2012)		2,000			2,169
Fairfax County Econ. Dev. Auth., Resource Recovery Rev. Ref. Bonds, Series A, AMT, AMBAC insured, 6.10% 2011		2,000			2,155
Port Auth., Commonwealth Port Fund Rev. Bonds (2002 Resolution), Series 2002, AMT, 5.00% 2011		1,500			1,562
Port Auth., Commonwealth Port Fund Rev. Bonds (2002 Resolution), Series 2002, AMT, 5.00% 2012		1,000			1,048
Port Auth., Commonwealth Port Fund Rev. Bonds (2002 Resolution), Series 2006, AMT, FSA insured, 5.50% 2014		2,735			2,979
Tobacco Settlement Fncg. Corp., Tobacco Settlement Asset-backed Bonds, Series 2005, 5.25% 2019		1,500			1,577
					12,885


VIRGIN ISLANDS — 0.50%
Public Fin. Auth., Rev. and Ref. Bonds (Matching Fund Loan Notes), Series 1998-A, 5.20% 2010		4,765			4,899



WASHINGTON — 4.22%
Clark County, Evergreen School Dist. No. 114, Unlimited Tax G.O. Bonds, Series 2002, FSA insured, 5.00% 2011		1,000			1,052
Conservation and Renewable Energy System, Conservation Project Rev. Bonds (Bonneville Power Administration), Series 2003, 5.00% 2011		1,000			1,048
Energy Northwest, Columbia Generating Station Electric Rev. Ref. Bonds, Series 2003-A, 5.50% 2012		2,475			2,671
Public Power Supply System, Rev. Ref. Bonds (Nuclear Project No. 2), Series 1998-A, 5.00% 2012		2,000			2,070
Energy Northwest, Columbia Generating Station Electric Rev. Ref. Bonds, Series 2003-A, 5.50% 2012 (escrowed to maturity)		1,025			1,111
Energy Northwest, Columbia Generating Station Electric Rev. Ref. Bonds, Series 2004-A, 5.25% 2008 (escrowed to maturity)		130			133
Energy Northwest, Columbia Generating Station Electric Rev. Ref. Bonds, Series 2004-A, 5.25% 2008		1,870			1,909
Energy Northwest, Rev. Ref. Bonds (Wind Project), Series 2005, MBIA insured, 5.00% 2011		1,000			1,046
G.O. Bonds, Series 1999-S-1, 5.00% 2012		2,350			2,399
Various Purpose G.O. Bonds, Series 2000-B, 6.00% 2010		1,130			1,198
Various Purpose G.O. Ref. Bonds, Series R-2006-A, AMBAC insured, 5.00% 2015		5,000			5,389
Health Care Facs. Auth., Rev. Bonds (Kadlec Medical Center), Series 2006-A, ASSURED GUARANTY insured, 5.00% 2013		915			968
King County, Sewer Rev. Ref. Bonds, Series 1999-B, FSA insured, 5.25% 2011		1,895			1,994
King County, Various Purpose G.O. and Ref. Bonds, Series 1996-A, 5.00% 2009		550			551
King and Snohomish Counties, Unlimited Tax G.O. Ref. Bonds (Northshore School Dist. No. 417), FSA insured, 5.00% 2011		1,900			1,998
North Kitsap School Dist. No. 400, Kitsap County, Unlimited Tax G.O. Ref. Bonds, Series 2005, FSA insured, 5.00% 2013		1,000			1,067
City of Seattle, Municipal Light and Power Improvements and Rev. Ref. Bonds, Series 2001, FSA insured, 5.50% 2012		1,000			1,063
City of Seattle, Municipal Light and Power Rev. Bonds, Series 1997, 5.00% 2010		1,000			1,025
Port of Seattle, Rev. Bonds, Series 1999-B, AMT, FGIC insured, 5.50% 2009		1,500			1,559
Port of Seattle, Rev. Bonds, Series 2001-B, AMT, FGIC insured, 5.50% 2010		2,000			2,092
Port of Seattle, Special Fac. Rev. Bonds (SEATAC Fuel Facs. LLC), Series 2003, AMT, MBIA insured, 5.00% 2012		1,510			1,577
Public Utility Dist. No. 1 of Lewis County, Rev. Ref. Bonds (Cowlitz Falls Hydroelectric Project),
Series 2003, XLCA insured, 5.00% 2011		2,000			2,090
Public Utility Dist. No. 1 of Snohomish County, Generation System Rev. Ref. Bonds, Series 2002-B, FSA insured, 5.25% 2011		2,000			2,126
Snohomish County, Limited Tax G.O. Bonds, Series 2001, 5.00% 2010		1,500			1,564
City of Spokane, Regional Solid Waste Management System, Rev. Ref. Bonds, Series 2001, AMBAC insured, 5.25% 2011		1,650			1,737
					41,437


WISCONSIN — 4.48%
Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds, 5.50% 2010		750			779
Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds, 5.75% 2012		3,000			3,212
Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds, 6.125% 2027		995			1,065
City of Franklin, Regional Solid Waste Fin. Commission, Demand Solid Waste Disposal Rev. Bonds (Waste Management of Wisconsin, Inc. Project), Series 2003-A, AMT, 4.95% 2016		8,000			8,330
City of Franklin, Solid Waste Disposal Rev. Bonds (Waste Management of Wisconsin, Inc. Project), Series 2006-A, AMT, 4.95% 2016 (put 2016)		1,000			1,041
G.O. Bonds, Series 2003-C, 5.25% 2014		7,770			8,430
G.O. Ref. Bonds, Series 1998-1, 5.50% 2010		1,105			1,171
Health and Educational Facs. Auth., Rev. and Ref. Bonds (Wheaton Franciscan Services, Inc. System), Series 2002, 6.00% 2016 (preref. 2012)		1,230			1,357
Health and Educational Facs. Auth., Rev. Bonds (Froedtert & Community Health Obligated Group), Series 2001, 5.65% 2009		1,935			2,010
Health and Educational Facs. Auth., Rev. Bonds (Hospital Sisters Services, Inc. Obligated Group), Series 1998-B, MBIA insured, 4.85% 2011		1,195			1,221
Health and Educational Facs. Auth., Rev. Bonds (Hospital Sisters Services, Inc. Obligated Group), Series 2003-D, FSA insured, 5.00% 2011		2,515			2,637
Health and Educational Facs. Auth., Rev. Bonds (Monroe Clinic, Inc.), Series 1999, 4.60% 2008		1,010			1,015
Health and Educational Facs. Auth., Rev. Bonds (Wheaton Franciscan Services, Inc. System), Series 2003-A, 5.00% 2008		1,595			1,616
Health and Educational Facs. Auth., Rev. Bonds (Wheaton Franciscan Services, Inc. System), Series 2003-A, 5.00% 2012		2,065			2,140
Housing and Econ. Dev. Auth., Single-family Mortgage Housing Rev. Bonds, Series 2000-C, MBIA insured, 4.35% 2009		675			677
City of Milwaukee, G.O. Corporate Purpose Bonds, Series R, 5.50% 2010		2,200			2,323
Village of Weston, Pollution Control Rev. Ref. Bonds (Wisconsin Public Service Corp. Projects), Series 2006, 3.95% 2013		5,000			5,012
					44,036


MULTI-STATE — 2.09%
Charter Mac Equity Issuer Trust, Medium Term Tax-Exempt Multi-family Housing Trust Certificates, Series 2006-A-2, Class A, AMT, 4.72% 2018¹		8,000			8,205
MuniMae TE Bond Subsidiary, LLC, Series A, AMT, 6.875% cumulative preferred (undated)¹		2,000			2,108
MuniMae TE Bond Subsidiary, LLC, Series A-2, AMT, 4.90% cumulative preferred (undated)¹		2,000			2,039
MuniMae TE Bond Subsidiary, LLC, Series A-3, AMT, 4.95% cumulative preferred (undated)¹		6,000			6,122
GMAC Municipal Mortgage Trust, Series A-1-2, AMT, 4.90% cumulative preferred 2039 (put 2014)¹		2,000			2,044
					20,518

Total bonds & notes (cost: $939,983,000)					943,839



		Principal amount			Market value
Short-term securities — 3.07%		(000	)		(000	)


Power County, Idaho, Pollution Control Rev. Bonds (FMR Corp. Project), 3.75% 2010³	$	3,730		$	3,730
Maryland Econ. Dev. Corp., Multi-Modal Rev. Bonds (United States Pharmacopeial Project),
Series 2004-A, AMBAC insured, 3.72% 2034³		500			500
Curators of the University of Missouri, Demand System Facs. Rev. Bonds, Series 2006-B, 3.73% 2035³		1,800			1,800
Jackson County, Mississippi, Port Fac. Ref. Rev. Bonds (Chevron U.S.A. Inc. Project), Series 1993, 3.72% 2023³		2,100			2,100
Las Vegas, Nevada, Valley Water Dist., G.O. Limited Tax Water Notes (SNWA Rev. Supported), Series 2004-B, TECP, 3.68% 2/5/2007		3,000			3,000
Ohio Water Dev. Auth., Pollution Control Rev. Ref. Bonds (FirstEnergy Generation Corp. Project), Series 2006-A, 3.72% 2019³		400			400
State of Oklahoma, Tulsa County Industrial Auth., Mortgage Rev. Bonds (Montereau in Warren Woods Project), Series 2002-A, 3.72% 2032^3,4		2,450			2,450
Public Building Auth. of the City of Clarksville, Pooled Fncg. Rev. Bonds (Tennessee Municipal Bond Fund), Series 2001, 3.73% 2031^3,4		4,800			4,800
Public Building Auth. of the City of Clarksville, Pooled Fncg. Rev. Bonds (Tennessee Municipal Bond Fund), Series 2003, 3.73% 2033³		1,100			1,100
Public Building Auth. of the County of Montgomery, Pooled Fncg. Rev. Bonds (Tennessee County Loan Pool), Series 2002, 3.73% 2032^3,4		4,620			4,620
Public Building Auth. of the County of Montgomery, Pooled Fncg. Rev. Bonds (Tennessee County Loan Pool), Series 2004, 3.73% 2034^3,4		1,800			1,800
Public Building Auth. of the County of Montgomery, Pooled Fncg. Rev. Bonds (Tennessee County Loan Pool), Series 2006, 3.73% 2036³		1,900			1,900
Washington Industrial Dev. Corp. of the Port of Bellingham, Environmental Facs. Industrial Rev. Bonds (BP West Coast Products LLC Project), Series 2002, AMT, 3.79% 2033³		1,950			1,950


Total short-term securities (cost: $30,150,000)					30,150

Total investment securities (cost: $970,133,000)					973,989
Other assets less liabilities					8,217

Net assets				$	982,206

¹Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities was $26,223,000, which represented 2.67% of the net assets of the fund.

²Step bond; coupon rate will increase at a later date.

³Coupon rate may change periodically; the date of the next scheduled coupon rate change is considered to be the maturity date.

⁴This security, or a portion of this security, has been segregated to cover funding requirements on investment transactions settling in the future.

Key to abbreviations

Agcy. = Agency Dist. = District G.O. = General Obligation

AMT = Alternative Minimum Tax Econ. = Economic Preref. = Prerefunded

Auth. = Authority Fac. = Facility Redev. = Redevelopment

Certs. of Part. = Certificates of Participation Facs. = Facilities Ref. = Refunding

Dept. = Department Fin. = Finance Rev. = Revenue

Dev. = Development Fncg. = Financing TECP = Tax-Exempt Commercial Paper

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money.

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus, which can be obtained from a financial adviser and should be read carefully before investing.

MFGEFP-943-0307-S6905

ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 8 - Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 10 - Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the Board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full Board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.

ITEM 11 - Controls and Procedures

(a)	The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.

(b)	There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12 - Exhibits

(a)(1)	Not applicable for filing of semi-annual reports to shareholders.

(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

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.

	LIMITED TERM TAX-EXEMPT BOND FUND OF AMERICA

	By /s/ Brenda S. Ellerin
	Brenda S. Ellerin, President and Principal Executive Officer

	Date: April 10, 2007

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.

By /s/ Brenda S. Ellerin

Brenda S. Ellerin, President and

Principal Executive Officer

Date: April 10, 2007

By /s/ Sharon G. Moseley

Sharon G. Moseley, Treasurer and

Principal Financial Officer

Date: April 10, 2007

Limited Term Tax Exempt Bond Fund Of America N-CSRSCertified semi-annual shareholder report (management investment company)